HomeMy WebLinkAboutAzusa-CAFR-FY2009-2010CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
203 North Brea Blvd
Suite 203
Brea, CA 92821
Lance Soll & Lunghard, LLP
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Suite 103
Murrieta, CA 92562
CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
PREPARED BY FINANCE DEPARTMENT
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i
Organizational Chart ............................................................................................................................... v
Officials of the City of Azusa .................................................................................................................. vi
GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................. vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT .................................................................................................. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................ 3
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Assets ................................................................................................................. 15
Statement of Activities .................................................................................................................... 16
Fund Financial Statements:
Balance Sheet - Governmental Funds ........................................................................................... 18
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets ....................................................................................................... 20
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds .................................................................................................... 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 24
Budgetary Comparison Statement - General Fund ........................................................................ 25
Statement of Net Assets - Proprietary Funds ................................................................................. 26
Statement of Revenues, Expenses and Changes in Fund Net
Assets - Proprietary Funds ............................................................................................................. 27
Statement of Cash Flows - Proprietary Funds ............................................................................... 28
Statement of Fiduciary Net Assets - Fiduciary Funds .................................................................... 30
Notes to Financial Statements ........................................................................................................... 31
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ............................................................ 76
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 82
Budgetary Comparison Schedules - Special Revenue Funds:
State Gasoline Tax ......................................................................................................................... 88
Proposition A .................................................................................................................................. 89
Proposition C .................................................................................................................................. 90
Community Development Block Grant ........................................................................................... 91
Senior Nutrition ............................................................................................................................... 92
Public Benefit Program ................................................................................................................... 93
Air Quality Improvement ................................................................................................................. 94
Grants and Seizure ......................................................................................................................... 95
Supplemental Law Enforcement ..................................................................................................... 96
Fire Safety ...................................................................................................................................... 97
Monrovia Nursery ........................................................................................................................... 98
Employee Benefits .......................................................................................................................... 99
Utility Mitigation ............................................................................................................................. 100
Highway 39 ................................................................................................................................... 101
LACMTA ....................................................................................................................................... 102
Measure R .................................................................................................................................... 103
AB939 Fee .................................................................................................................................... 104
Low and Moderate Income Housing ............................................................................................. 105
Budgetary Comparison Schedules - Capital Projects Funds:
Park In-Lieu .................................................................................................................................. 106
Public Works Endowment ............................................................................................................. 107
Redevelopment Agency ............................................................................................................... 108
Budgetary Comparison Schedules - Debt Service Fund:
Public Financing Authority ............................................................................................................ 109
Redevelopment Agency ............................................................................................................... 110
Combining Statement of Net Assets – Nonmajor Proprietary Funds .............................................. 112
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets – Nonmajor Proprietary Funds ............................................................................. 113
Combining Statement of Cash Flows – Nonmajor Proprietary Funds ............................................. 114
Combining Statement of Net Assets – Internal Service Funds ....................................................... 118
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED)
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets – Internal Service Funds ................................................................................... 120
Combining Statement of Cash Flows – Internal Service Funds ................................................... 122
Combining Statement of Changes in Assets and Liabilities – Agency Fund ............................... 124
Supplemental Statement of Revenues, Expenses and Changes in
Net Assets – Water – Enterprise Fund ......................................................................................... 125
Supplemental Statement of Revenues, Expenses and Changes in
Net Assets – Light – Enterprise Fund ........................................................................................... 126
STATISTICAL SECTION
Table 1 – Net Assets by Component ............................................................................................ 129
Table 2 – Change in Net Assets ................................................................................................... 130
Table 3 – Fund Balances of Governmental Funds ....................................................................... 132
Table 4 – Changes in Fund Balances of Governmental Funds ................................................... 133
Table 5 – Light Department, Electricity Sold by Type of Customer .............................................. 134
Table 6 – Electricity Rates ............................................................................................................ 135
Table 7 – Largest Electrical Customers ....................................................................................... 136
Table 8 – Water Sold by Type of Customer ................................................................................. 137
Table 9 – Water Rates .................................................................................................................. 138
Table 10 – Largest Water Customers .......................................................................................... 139
Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................ 140
Table 12 – Direct and Overlapping Property Rates ...................................................................... 141
Table 13 – Principal Property Tax Payers .................................................................................... 142
Table 14 – Property Tax Levies and Collections .......................................................................... 143
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (CONTINUED)
Table 15 – Ratios of Outstanding Debt by Type .......................................................................... 144
Table 16 – Ratio of General Bonded Debt Outstanding ............................................................... 145
Table 17 – Direct and Overlapping Debt ...................................................................................... 146
Table 18 – Legal Debt Margin Information ................................................................................... 147
Table 19 – Pledged Revenue Coverage ...................................................................................... 148
Table 20 – Pledged Revenue Coverage,
Tax Allocation Bonds – Redevelopment Agency ....................................................... 150
Table 21 – Demographic and Economic Statistics ....................................................................... 151
Table 22 – Principal Employers .................................................................................................... 152
Table 23 – Full-time and Part-time Employees by Function ........................................................ 153
Table 24 – Operating Indicators by Function ............................................................................... 154
Table 25 – Capital Asset Statistics by Function ........................................................................... 155
Table 26 – Schedule of Credits .................................................................................................... 156
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City of Azusa
ELECTED OFFICIALS AND DEPARTMENT HEADS
213 E. Foothill Boulevard
Azusa, CA 91702
(626) 812-5200
Fax (626) 334-6358
www.ci.azusa.ca.us
ELECTED OFFICIALS
TITLE TERM EXPIRATION
Vera Mendoza City Clerk March, 2013
Marcene Hamilton City Treasurer March, 2013
Joseph Rocha Mayor March, 2011
Robert Gonzales Mayor Pro-Tem March, 2013
Angel Carrillo Councilmember March, 2011
Keith Hanks Councilmember March, 2013
Uriel Macias Councilmember March, 2011
DEPARTMENT HEADS TITLE PHONE NUMBER
Francis M. Delach City Manager 626-812-5238
James Makshanoff Assistant City Manager 626-812-5224
Kurt Christiansen Director of Economic & Community Development 626-812-5236
Joe Jacobs Director of Recreation & Family Services 626-812-5220
Alan Kreimeier Director of Administrative Services/CFO 626-812-5291
George Morrow Director of Utilities 626-812-5219
Bob Garcia Chief of Police 626-812-3250
Tito Haes Director of Public Works/Assistant City Manager 626-812-5248
Nancy Johnson Director of Library 626-812-5277
Kermit Francis Interim Director of Human Resources 626-812-5183
Ann Graf Director of Information Technology 626-812-5024
P. Michael Freeman Chief/Fire 626-974-8371
City Attorney Best, Best, & Krieger (Sonia Carvalho) 949-263-2603
vi
vii
THIS PAGE INTENTIONALLY LEFT BLANK
viii
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, 2010, 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, 2010, 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
December 20, 2010, 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, Soll & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
Brandon W. Burrows, CPA
Donald L. Parker, CPA
Michael K. Chu, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
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.
December 20, 2010
2
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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, 2010. 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 2010 by $133,135,176
(net assets).
Total City assets of $318,216,782 include $169,291,477 or 53% of non-current assets
attributed to capital assets, net of depreciation.
Total City liabilities of $185,081,606 include $170,887,850 or 92% of long-term liabilities
attributed mainly to tax allocation bonds and certificates of participation.
As of June 30, 2010, the City’s governmental funds reported combined fund balances of
$28,918,378.
At the end of the current fiscal year, the total fund balance for the General Fund was
decreased by $3,277,643 to $9,605,047.
Total General Fund revenues received for the year were $28,876,838 and total General Fund
expenditures for the year were $29,263,698, an excess of expenditures over revenues
amounting to $386,860. 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
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
3
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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 25 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 22 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
internally 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
4
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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.
2010 2009 2010 2009 2010 2009
Current and other assets 66,539,404$ 79,766,982$ 82,385,901$ 85,394,232$ 148,925,305$ 165,161,214$
Capital assets, net 31,568,895 31,046,966 137,722,582 137,514,789 169,291,477 168,561,755
Total assets 98,108,299 110,813,948 220,108,483 222,909,021 318,216,782 333,722,969
Current liabilities 5,328,887 5,097,116 8,864,869 8,304,190 14,193,756 13,401,306
Long-term liabilities 84,719,663 85,030,532 86,168,187 87,962,223 170,887,850 172,992,755
Total liabilities 90,048,550 90,127,648 95,033,056 96,266,413 185,081,606 186,394,061
Net assets:
Invested in capital assets,
net of related debt 19,372,237 19,090,231 58,696,499 57,578,956 78,068,736 76,669,187
Restricted 55,734,821 60,470,894 5,069,361 5,049,234 60,804,182 65,520,128
Unrestricted (67,047,309) (58,874,825) 61,309,567 64,014,418 (5,737,742) 5,139,593
Total net assets 8,059,749$ 20,686,300$ 125,075,427$ 126,642,608$ 133,135,176$ 147,328,908$
Governmental
Activities
Business Type
Activities Total
As of June 30, 2010, the City’s assets exceeded liabilities by $133,135,176. 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 the Water and Light
Funds. The non operating categories such as interest expense and franchise fees resulted in a
5
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
net asset increase for the Water Fund $1,521,314 and a net decrease for the Electric Fund
($2,222,782).
In evaluating the net assets for both governmental and business-type activities in the City of
Azusa, $78,068,736 (58.6%) denotes net assets invested in capital assets (net of related debt)
and $60,804,182 (45.7) represents resources that are subject to external restrictions. The
remaining balance represents unrestricted net assets of ($5,737,742) (-4.3%).
The following chart shows the comparison of the three components of net assets for Fiscal Years
2009-10 and 2008-09 (in millions)
0.0
40.0
80.0
120.0
160.0
FY 08/09 $76.7 $65.5 $5.1 $147.3
FY 09/10 $78.1 $60.8 $(5.7) $133.1
Invested in Capital
Assets, Net of
Related Debt
Restricted Unrestricted Total Net Assets
Governmental activities. The following condensed summary of activities of the City’s
governmental activities for the year ended June 30, 2010 shows total net assets equal
$8,059,749, a decrease of $12,626,551 (61.0%) from the prior year. The primary decreases are
due to reductions in cash and investments ($3,915,345) and cash with fiscal agent
($8,592,831).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 $125,075,427, a decrease
of $1,567,181 (1.2%) from the prior year. Key elements of the decrease in net assets are higher
energy costs within the Light Fund and a reduction in service demand due to the sluggish
economy.
6
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
2010 2009 2010 2009 2010 2009
Program Revenues:
Charges for services 7,838,471$ 6,789,565$ 60,276,447$ 53,779,113$ 68,114,918$ 60,568,678$
Operating contributions
and grants 3,261,472 5,307,696 84 - 3,261,556 5,307,696
Capital contributions
and grants 654,467 286,875 - - 654,467 286,875
General Revenues:
Taxes 26,536,510 31,916,739 555,121 586,254 27,091,631 32,502,993
Motor Vehicle In Lieu 137,557 157,012 - - 137,557 157,012
Investment Earnings 2,914,790 3,967,549 1,753,061 2,579,973 4,667,851 6,547,522
Gain on Sale of Assets - - 2,306 797 2,306 797
Miscellaneous 441,956 707,536 1,336,168 1,230,835 1,778,124 1,938,371
Total Revenues 41,785,223 49,132,972 63,923,187 58,176,972 105,708,410 107,309,944
Expenses:
General Government 16,368,337 15,047,013 - - 16,368,337 15,047,013
Public Safety 19,458,795 20,459,265 - - 19,458,795 20,459,265
Community Development 4,041,516 5,690,458 - - 4,041,516 5,690,458
Parks and Recreation 3,950,786 4,083,565 - - 3,950,786 4,083,565
Public Works 4,688,537 4,577,435 - - 4,688,537 4,577,435
Interest and Fiscal Charges 7,274,723 6,224,638 - - 7,274,723 6,224,638
Water - - 19,114,843 17,225,088 19,114,843 17,225,088
Light - - 39,715,805 36,939,301 39,715,805 36,939,301
Sewer/Wastewater - - 1,986,142 1,995,785 1,986,142 1,995,785
Refuse Contract - - 2,924,303 3,028,270 2,924,303 3,028,270
Total Expenses 55,782,694 56,082,374 63,741,093 59,188,444 119,523,787 115,270,818
Increase (decrease) in net assets
before transfers (13,997,471) (6,949,402) 182,094 (1,011,472) (13,815,377) (7,960,874)
Transfers 1,386,380 2,249,387 (1,386,380) (2,249,387) - -
Change in Net Assets (12,611,091) (4,700,015) (1,204,286) (3,260,859) (13,815,377) (7,960,874)
Net Assets (Deficits) - Beginning 20,686,300 25,264,010 126,642,608 129,891,691 147,328,908 155,155,701
Restatement of Net Assets (15,460) 122,305 (362,895) 11,776 (378,355) 134,081
Net Assets (Deficits) - Ending 8,059,749$ 20,686,300$ 125,075,427$ 126,642,608$ 133,135,176$ 147,328,908$
City of Azusa - Summary of Changes in Net Assets (Deficits)
Governmental
Activities
Business Type
Activities Total
The City’s total revenues are $105,708,410 and the costs of all programs and services are
$119,523,787. Fiscal year 2009-10 revenues decreased by $1,601,534 (-1.5%). Expenses
increased by $4,252,969 (3.7%) from prior year with increases in business-type activities. Key
factors include:
Investment earnings in governmental and business-type activities reflect a decrease of
26.5% and 64.6%, respectively. The reduction in earnings is primarily due to the
completion of the new Water Treatment Plant, thus, resulted a reduction in fund balance.
Interest rates continued to drop and many investments within th e 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, 2010
Revenues by Source-Governmental Activities
Year Ended June 30, 2010
Investment
earnings/other
8.0%Motor vehicle in lieu
0.3%Other taxes
3.1%
Utility users taxes
7.0%
Property taxes
24.0%
Business licenses
taxes
4.4%
Franchise taxes
13.4%
Sales taxes
11.3%
Charges for services
18.8%
Contributions &
grants
9.4%
Key elements of this year’s summary of activities are as follows:
Property tax revenue decreased by $3,485,274 and Sales tax revenue decreased by a
$1,486,030 from the prior year.
Charges for services revenue increased by $1,048,906 with increases attributable to all
functions, but, most significantly to General Government and Community Development.
Investment earnings received during the fiscal year decreased by $1,318,339 due to
continued interest rate drops, lower revenues and higher expenses.
Operating contributions and grants decreased by $2,046,224 from the previous year
primarily due to Public Works activities, and capital contributions and grants decreased
by $367,592 from the previous year.
8
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
Expense by Activities
Year Ended June 30, 2010
Public works
8.4%
Interest & fiscal
charges
13.0%
General government
26.7%
Public safety
34.9%
Community
development
7.2%
Parks and recreation
7.1%
Total Governmental Activities expenses decreased $299,680 (-0.5%) over last year total
Governmental Activities expenses.
Total General Government expenses increased $1,321,324 (8.8%) compared to prior
year General Government expenses.
Total Public Safety expenditures decreased $1,000,470 (-4.9%) primarily due to the
reduction in the PERS public safety plan as a result of last year’s issuance of the taxable
pension funding bonds to refund obligations under the plan.
9
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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, un reserved 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 $28,918,378, a decrease of $14,133,384 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 $13,022,299 reserved in special revenue funds, a category that
decreased by over $8.4 million over the prior year’s reservation.
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2009-10, its
fund balance decreased by $3,277,643, 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 $3,777,753, while total fund balance
was $9,605,047. Of this total, $5,401,018 is reserved for advances to other funds.
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.
The Redevelopment Agency Capital Projects Fund is used to account for capital projects of the
Redevelopment Agency. During FY 2010, its fund balance decreased by $5,348,264, due to
decreased 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 ($13,554,160) while total fund balance was $17,061,941.
The Redevelopment Agency Debt Service Fund is used to account for debt service payments of
the Redevelopment Agency. During FY 2010, its deficit fund balance ($29,155,199) increased
(5,069,511) from the prior year. Advances from both Enterprise and Internal Service Funds to the
Agency Debt Service Fund account are detailed in Note 11.
10
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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
$60,651,382. Total unrestricted net assets decreased by $2,864,749 (-4.5%) and total net assets
decreased by $1,567,180 (-1.3%) from the previous fiscal year.
Unrestricted net assets of the City’s W ater Utility at the end of the year amounted to $24,098,994.
Total unrestricted net assets increased by $827,235 (3.6%) and total net assets increased by
$1,179,935 (2.2%) from the previous fiscal year.
Unrestricted net assets of the City’s Light Utility at the end of the year amounted to $34,179,849.
Total unrestricted net assets decreased by $2,596,823 (-7.6%) and total net assets decreased by
$2,223,349 (-3.7%) from the previous fiscal year. The primary source of this decrease was due
to the $2,935,571 increase in the source of supply expenses from prior year.
The following chart highlights total revenue and total expenses for each of the business type
activities for fiscal year end June 30, 2010.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Revenue $21.2 $37.6 $1.6 $3.5
Expenses $19.7 $39.8 $2.1 $3.5
Water Light Sewer/ Wastewater Refuse Contract
11
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
Variance
with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 25,603,935$ 25,324,795$ 21,609,180$ (3,715,615)$
Charges for services 1,399,740 1,420,840 1,477,725 56,885
Assessments 3,071,570 3,171,570 3,027,016 (144,554)
Other revenue 2,348,680 2,584,172 2,762,917 178,745
Total revenue 32,423,925 32,501,377 28,876,838 (3,624,539)
EXPENDITURES
Operations 28,131,125 28,812,189 28,291,711 520,478
Capital outlay 15,725 15,725 15,041 684
Debt service - 977,760 956,946 20,814
Total expenditures 28,146,850 29,805,674 29,263,698 541,976
Excess of revenues
over expenditures 4,277,075 2,695,703 (386,860) (3,082,563)
OTHER FINANCING SOURCES (USES)
Transfers in 1,036,550 3,528,410 1,009,980 (2,518,430)
Transfers out (5,163,410) (6,699,135) (3,900,763) 2,798,372
Total other financing sources (uses)(4,126,860) (3,170,725) (2,890,783) 279,942
Net change in fund balance 150,215 (475,022) (3,277,643) (2,802,621)
Fund balance beginning of year 12,882,690 12,882,690 12,882,690 -
Fund balance end of year 13,032,905$ 12,407,668$ 9,605,047$ (2,802,621)$
Budgeted Amounts
City of Azusa - General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2010
The difference between the original expenditure budget and the final amended expenditure
budget was an increase of $1,658,824 with highlights as follows:
General Government saw increased appropriations of $165,030 that included Council
approved homeless voucher program and additional City Attorney retainer.
Public Safety reflects a $218,399 increase primarily due to the increase in fee collection
expenses, increased part-time employee expenses, equipment purchase and disaster
services associated with Area D.
Parks and Recreation increased by $208,245 with staff and operating costs associated
with additional landscape maintenance contract costs and higher benefit costs associated
with increased part-time employee hours.
12
City of Azusa
Management’s Discussion and Analysis
June 30, 2010
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, 2010 amounted to $169,291,477 (net of accumulated depreciation). This
investment includes land, construction in progress, land improvements, buildings and structures,
machinery and equipment, automotive equipment and infrastructure.
2010 2009 2010 2009 2010 2009
Land 1,729,956$ 1,729,956$ 2,988,973$ 2,988,973$ 4,718,929$ 4,718,929$
Construction in Progress 255,955 473,503 3,774,100 51,288,672 4,030,055 51,762,175
Land Improvements 2,867,596 3,059,483 600,987 619,766 3,468,583 3,679,249
Buildings and Structures 7,583,474 6,933,173 15,458,454 15,997,222 23,041,928 22,930,395
Machinery and Equipment 1,426,381 1,371,948 4,018,832 4,214,446 5,445,213 5,586,394
Automotive Equipment 1,297,514 1,307,132 742,681 631,958 2,040,195 1,939,090
Infrastructure 16,408,019 16,171,771 110,138,555 61,773,752 126,546,574 77,945,523
Total 31,568,895$ 31,046,966$ 137,722,582$ 137,514,789$ 169,291,477$ 168,561,755$
City of Azusa - Capital Assets
(Net of Accumulated Depreciation)
Activities
Business Type
Activities Total
Governmental
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 $168,370,721. Of this amount, 85,422,915 is a liability of the Governmental
Activities and $82,947,806 is a liability of the Business Type Activities.
2010 2009 2010 2009 2010 2009
Employee Leave Benefits 3,542,431$ 3,395,218$ 1,252,806$ 1,287,293$ 4,795,237$ 4,682,511$
Net OPEB Liability 4,181,823 2,343,605 - - 4,181,823 2,343,605
Section 108 Notes Payable - - - - - -
1994 COPS - - 1,925,000 2,030,000 1,925,000 2,030,000
2003 COPS 3,480,000 3,695,000 25,200,000 26,470,000 28,680,000 30,165,000
2006 Water Revenue Bonds - - 54,570,000 54,850,000 54,570,000 54,850,000
2003 Tax Allocation Bonds 8,815,000 9,265,000 - - 8,815,000 9,265,000
2005 Tax Allocation Bonds 9,429,889 9,346,201 - - 9,429,889 9,346,201
2007 Tax Allocation Bonds 19,700,000 20,150,000 - - 19,700,000 20,150,000
2008 Tax Allocation Bonds 17,870,000 18,295,000 - - 17,870,000 18,295,000
2008 Taxable Pension Fnding Bd 6,735,000 7,215,000 - - 6,735,000 7,215,000
Developer Agreements 9,366,038 8,974,171 - - 9,366,038 8,974,171
Claims and Judgments Payable 2,302,734 3,068,169 - - 2,302,734 3,068,169
Total 85,422,915$ 85,747,364$ 82,947,806$ 84,637,293$ 168,370,721$ 170,384,657$
Total
City of Azusa - Outstanding Debt
Governmental
Activities
Business Type
Activites
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, 2010
Economic Factors and Next Year’s Budgets and Rates
The revenue projections for the 2010-11 budget reflected less than 0.65% 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 .29% for the
2010-11 adopted budget. The City Manager instructed departments to eliminate or reduce
discretionary spending, and cut from the prior year Maintenance & Operations budget. 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 2010-11, the City adopted a balanced budget with a surplus of $153,500 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. In June 2009, a two-tier water rate increase was
adopted by the Council resulting in an 18% increase for FY 2009-10 and an 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. Effective July 1, 2010, 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 June 2010,
as a result of a cost of services study, the City Council adopted a resolution that resulted in a
7.3% increase in electric rates, effective July 1,2010, to help recover purchase power costs.
The State of California fiscal crisis continues to have negative impacts on the City’s finances. In
July 2009, the legislature approved the borrowing of up to eight percent of local property tax
under Proposition 1A (voter approved in 2004) resulting in its borrowing $ 727,997 from the City
in May of 2010 to be repaid within three years with interest. In addition, the State passed
legislation taking with no future repayment, $ 2,491,858 from the City’s Redevelopment Agency in
2010 and an additional $513,030 in 2011. These takings are currently the subject of a lawsuit
between the State and the California Redevelopment Association on behalf of its member cities.
As a result of these State actions, the League of California Cities sponsored successful legislation
to prevent further State takings of municipal funds and proposition 22 was passed by the voters in
November of 2010. Record unemployment continues to remain a problem with rates within the
Los Angeles-Long Beach-Glendale Metropolitan Division at 12.3% in June 2010. City staff will
carefully be monitoring any legislative action that could impact the financial condition in Azusa.
Request for Information
This financial report is designed to provide a general overview of the financial position of the City
of Azusa for all those with an interest in the government’s finances. Questions concerning any of
the information provided in this report or requests for additional information should be addressed
to Administrative Services-Finance, 213 E. Foothill Blvd., Azusa, CA 91702.
14
CITY OF AZUSA
STATEMENT OF NET ASSETS
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 21,206,098$ 26,978,791$ 48,184,889$
Receivables:
Accounts 766,833 10,559,521 11,326,354
Taxes 2,892,750 - 2,892,750
Notes and loans 2,411,653 82,952 2,494,605
Accrued interest 24,154 79,184 103,338
Internal balances (17,882,433) 17,882,433 -
Prepaid costs 594,941 11,673 606,614
Deposits 465 115,783 116,248
Inventories 150,093 1,646,420 1,796,513
Deferred charges 2,211,864 1,117,104 3,328,968
Land held for resale 42,105,847 - 42,105,847
Restricted assets:
Cash and investments 30,855 2,674,009 2,704,864
Cash with fiscal agent 4,825,663 10,958,659 15,784,322
Cash held for rate stabilization - 10,279,372 10,279,372
Net pension asset 7,200,621 - 7,200,621
Capital assets not being depreciated 1,985,911 6,763,073 8,748,984
Capital assets, net of depreciation 29,582,984 130,959,509 160,542,493
Total Assets 98,108,299 220,108,483 318,216,782
Liabilities:
Accounts payable 1,888,126 3,685,512 5,573,638
Accrued liabilities 1,517,951 405,683 1,923,634
Accrued interest 1,531,641 1,982,411 3,514,052
Unearned revenue 103,374 - 103,374
Deposits payable - 2,767,501 2,767,501
Due to other governments 287,795 23,762 311,557
Noncurrent liabilities:
Due within one year 3,719,297 2,215,334 5,934,631
Due in more than one year 81,000,366 83,952,853 164,953,219
Total Liabilities 90,048,550 95,033,056 185,081,606
Net Assets:
Invested in capital assets,
net of related debt 19,372,237 58,696,499 78,068,736
Restricted for:
Community development projects 21,091,437 - 21,091,437
Capital projects 26,960,215 - 26,960,215
Debt service 482,548 5,069,361 5,551,909
Pension benefits 7,200,621 - 7,200,621
Unrestricted (67,047,309) 61,309,567 (5,737,742)
Total Net Assets 8,059,749$ 125,075,427$ 133,135,176$
JUNE 30, 2010
Primary Government
See Notes to Financial Statements 15
CITY OF AZUSA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2010
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 16,368,337$ 3,760,159$ -$ -$
Public safety 19,458,795 871,900 498,759 107,436
Community development 4,041,516 1,659,057 674,021 103,845
Parks and recreation 3,950,786 1,179,080 256,062 -
Public works 4,688,537 368,275 1,832,630 443,186
Interest on long-term debt 7,274,723 - - -
Total Governmental Activities 55,782,694 7,838,471 3,261,472 654,467
Business-Type Activities:
Water 19,114,843 20,592,358 84 -
Light 39,715,805 35,192,941 - -
Sewer/wastewater 1,986,142 1,557,758 - -
Refuse contract 2,924,303 2,933,390 - -
Total Business-Type Activities 63,741,093 60,276,447 84 -
Total Primary Government 119,523,787$ 68,114,918$ 3,261,556$ 654,467$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Utility users tax
Other taxes
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
Program Revenues
See Notes to Financial Statements 16
Primary Government
Governmental Business-Type
Activities Activities Total
(12,608,178)$ -$ (12,608,178)$
(17,980,700) - (17,980,700)
(1,604,593) - (1,604,593)
(2,515,644) - (2,515,644)
(2,044,446) - (2,044,446)
(7,274,723) - (7,274,723)
(44,028,284) - (44,028,284)
- 1,477,599 1,477,599
- (4,522,864) (4,522,864)
- (428,384) (428,384)
- 9,087 9,087
- (3,464,562) (3,464,562)
(44,028,284) (3,464,562) (47,492,846)
10,032,979 555,121 10,588,100
200,840 - 200,840
4,716,305 - 4,716,305
5,595,423 - 5,595,423
1,829,503 - 1,829,503
3,059,121 - 3,059,121
1,102,339 - 1,102,339
137,557 - 137,557
2,914,790 1,753,061 4,667,851
441,956 1,336,168 1,778,124
- 2,306 2,306
1,386,380 (1,386,380) -
31,417,193 2,260,276 33,677,469
(12,611,091) (1,204,286) (13,815,377)
20,686,300 126,642,608 147,328,908
(15,460) (362,895) (378,355)
8,059,749$ 125,075,427$ 133,135,176$
Net (Expenses) Revenues and Changes in Net Assets
See Notes to Financial Statements 17
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
Capital
Projects Fund
Debt
Service Fund
General
Assets:
Pooled cash and investments -$ 2,642,693$ 844,273$
Receivables:
Accounts 271,776 3,555 -
Taxes 1,651,984 - 925,554
Notes and loans 12,754 895,976 -
Accrued interest 445 2,445 10,716
Prepaid costs 263,429 50 -
Deposits - - -
Due from other funds 5,940,174 450,000 281,522
Advances to other funds 5,401,018 - -
Inventories 150,093 - -
Land held for resale - 30,523,772 -
Restricted assets:
Cash and investments - - -
Cash and investments with fiscal agents 218,900 - 4,124,223
Total Assets 13,910,573$ 34,518,491$ 6,186,288$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 591,329$ 200,971$ 155,979$
Accrued liabilities 1,327,625 32,862 -
Deferred revenues 613,075 803,697 305,345
Unearned revenues - - -
Due to other governments 25 - 264,698
Due to other funds 1,467,472 1,649,569 4,107,157
Advances from other funds 306,000 14,769,451 30,508,308
Total Liabilities 4,305,526 17,456,550 35,341,487
Fund Balances:
Reserved:
Reserved for prepaid costs 263,429 50 -
Reserved for land held for resale - 30,523,772 -
Reserved for notes and loans 12,754 92,279 -
Reserved for advances to other funds 5,401,018 - -
Reserved for inventory 150,093 - -
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 1,766,063 - -
Designated for library foundation 11,366 - -
Designated for emergencies 1,000,324 - -
Undesignated - (13,554,160) (29,155,199)
Total Fund Balances 9,605,047 17,061,941 (29,155,199)
Total Liabilities and Fund Balances 13,910,573$ 34,518,491$ 6,186,288$
Redevelopment
Agency
Redevelopment
Agency
See Notes to Financial Statements 18
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to 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
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 advances to other funds
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
Other Total
Governmental Governmental
Funds Funds
14,556,752$ 18,043,718$
472,978 748,309
315,212 2,892,750
1,501,787 2,410,517
9,061 22,667
306,746 570,225
465 465
1,680,484 8,352,180
4,961,558 10,362,576
- 150,093
11,582,075 42,105,847
30,855 30,855
482,540 4,825,663
35,900,513$ 90,515,865$
491,747$ 1,440,026$
96,908 1,457,395
1,521,203 3,243,320
103,374 103,374
23,072 287,795
771,041 7,995,239
1,486,579 47,070,338
4,493,924 61,597,487
306,746 570,225
11,582,075 42,105,847
5,619 110,652
4,961,558 10,362,576
- 150,093
465 465
13,022,299 13,022,299
1,045,279 1,045,279
482,548 482,548
- 1,000,000
- 1,766,063
- 11,366
- 1,000,324
- (42,709,359)
31,406,589 28,918,378
35,900,513$ 90,515,865$
See Notes to Financial Statements 19
CITY OF AZUSA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2010
Fund balances of governmental funds 28,918,378$
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.30,646,376
Bond issuance cost is an expenditure in the governmental funds, but it is
a deferred charge in the statement of net assets.2,211,864
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Long-term liabilities (74,692,675)
Compensated Absences (3,316,368)
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 (4,181,823)
Net Pension Asset 7,200,621
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds. (1,531,641)
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. 3,243,320
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.19,561,697
Net assets of governmental activities 8,059,749$
See Notes to Financial Statements 20
THIS PAGE INTENTIONALLY LEFT BLANK
21
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Capital
Projects Fund
Debt
Service Fund
General
Revenues:
Taxes 21,609,180$ -$ 3,980,579$
Assessments 3,027,016 - -
Licenses and permits 472,389 - -
Intergovernmental 316,146 - -
Charges for services 1,477,725 - -
Use of money and property 481,689 212,109 58,346
Fines and forfeitures 1,104,715 - -
Contributions 21,244 - -
Miscellaneous 366,734 30,331 154
Total Revenues 28,876,838 242,440 4,039,079
Expenditures:
Current:
General government 7,370,224 5,191,201 1,445,311
Public safety 15,391,207 - -
Community development 1,598,579 593,053 -
Parks and recreation 3,096,834 - -
Public works 834,867 - -
Capital outlay 15,041 112,873 -
Debt service:
Principal retirement 480,000 - 1,325,000
Interest and fiscal charges 476,946 697,678 5,750,040
Total Expenditures 29,263,698 6,594,805 8,520,351
Excess (Deficiency) of Revenues
Over (Under) Expenditures (386,860) (6,352,365) (4,481,272)
Other Financing Sources (Uses):
Transfers in 1,009,980 1,465,903 1,791,514
Transfers out (3,900,763) (461,802) (2,771,620)
Long-term debt issued - - 391,867
Total Other Financing Sources
(Uses)(2,890,783) 1,004,101 (588,239)
Net Change in Fund Balances (3,277,643) (5,348,264) (5,069,511)
Fund Balances, Beginning of Year, as
previously reported 12,415,256 22,952,996 (22,651,251)
Restatements 467,434 (542,791) (1,434,437)
Fund Balances, Beginning of Year, as restated 12,882,690 22,410,205 (24,085,688)
Fund Balances, End of Year 9,605,047$ 17,061,941$ (29,155,199)$
Redevelopment
Agency
Redevelopment
Agency
See Notes to Financial Statements 22
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
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
Other Total
Governmental Governmental
Funds Funds
1,444,100$ 27,033,859$
- 3,027,016
- 472,389
3,748,805 4,064,951
1,707,935 3,185,660
583,778 1,335,922
- 1,104,715
92,119 113,363
175,789 573,008
7,752,526 40,910,883
242,145 14,248,881
3,752,962 19,144,169
1,080,040 3,271,672
422,792 3,519,626
3,128,953 3,963,820
3,372,807 3,500,721
215,000 2,020,000
190,761 7,115,425
12,405,460 56,784,314
(4,652,934) (15,873,431)
6,443,378 10,710,775
(2,228,410) (9,362,595)
- 391,867
4,214,968 1,740,047
(437,966) (14,133,384)
30,353,058 43,070,059
1,491,497 (18,297)
31,844,555 43,051,762
31,406,589$ 28,918,378$
See Notes to Financial Statements 23
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, 2010
Net change in fund balances - total governmental funds (14,133,384)$
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.600,788
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.1,530,865
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets.(112,348)
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.50,318
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.(133,367)
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 (1,838,218)
Net Pension Asset 101,451
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.(239,613)
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.1,562,417
Change in net assets of governmental activities (12,611,091)$
See Notes to Financial Statements 24
CITY OF AZUSA
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 12,882,690$ 12,882,690$ 12,882,690$ -$
Resources (Inflows):
Taxes 25,603,935 25,324,795 21,609,180 (3,715,615)
Assessments 3,071,570 3,171,570 3,027,016 (144,554)
Licenses and permits 312,800 416,900 472,389 55,489
Intergovernmental 295,430 287,430 316,146 28,716
Charges for services 1,399,740 1,420,840 1,477,725 56,885
Use of money and property 599,250 609,250 481,689 (127,561)
Fines and forfeitures 891,500 949,592 1,104,715 155,123
Contributions 9,000 9,000 21,244 12,244
Miscellaneous 240,700 312,000 366,734 54,734
Transfers in 1,036,550 3,528,410 1,009,980 (2,518,430)
Amounts Available for Appropriation 46,343,165 48,912,477 42,769,508 (6,142,969)
Charges to Appropriation (Outflow):
General government
City Council 147,510 155,010 136,177 18,833
City Attorney 231,000 251,770 251,766 4
Administration 511,355 536,175 552,079 (15,904)
Promotion / Membership 187,185 187,185 173,744 13,441
City Clerk 462,900 462,900 452,422 10,478
Library Services - General 1,345,720 1,348,920 1,230,371 118,549
Library Services - Youth 31,100 31,100 30,485 615
Finance - Accounting 1,074,470 1,129,190 1,097,080 32,110
Cash Management 122,660 122,660 118,422 4,238
Purchasing 330,805 341,390 337,936 3,454
Printing Services 14,100 15,180 12,213 2,967
Human Resources 338,560 339,410 255,775 83,635
City-wide 2,662,235 2,678,235 2,412,806 265,429
Admin Services / Business License 271,345 306,100 308,948 (2,848)
Public safety
Police 13,950,835 14,067,034 14,448,485 (381,451)
Emergency Services 147,265 147,265 137,306 9,959
Police Department Contracts 813,770 815,970 702,974 112,996
Area D - 100,000 98,592 1,408
Pension - Safety - 5,000 3,850 1,150
Community development
Planning 607,290 659,830 594,109 65,721
Building Regulation 536,255 536,255 523,354 12,901
Code Enforcement 461,585 469,845 475,616 (5,771)
Economic and Community Development - 5,500 5,500 -
Parks and recreation
Recreation 1,289,725 1,406,895 1,389,826 17,069
Parks Maintenance 1,384,640 1,513,385 1,513,641 (256)
Senior Programs 227,720 190,050 170,755 19,295
Women's Club 28,780 28,780 22,612 6,168
Public works
Engineering Service 240,700 243,900 170,280 73,620
Graffiti Removal 137,835 137,835 88,329 49,506
Facilities Maintenance 555,420 579,420 576,258 3,162
Capital outlay 15,725 15,725 15,041 684
Debt service
Principal retirement - 480,000 480,000 -
Interest and fiscal charges 18,360 497,760 476,946 20,814
Transfers out 5,163,410 6,699,135 3,900,763 2,798,372
Total Charges to Appropriations 33,310,260 36,504,809 33,164,461 3,340,348
Budgetary Fund Balance, June 30 13,032,905$ 12,407,668$ 9,605,047$ (2,802,621)$
See Notes to Financial Statements 25
CITY OF AZUSA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2010
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Assets:
Current:
Cash and investments 22,174,445$ 1,160,157$ 2,454,180 $ 25,788,782$ 4,352,389 $
Receivables:
Accounts 5,691,012 4,297,629 570,880 10,559,521 18,524
Notes and loans 2,274 76,048 - 78,322 5,766
Accrued interest 35,688 26,422 1,604 63,714 16,957
Prepaid costs 2,610 8,035 - 10,645 25,744
Deposits 36,325 79,458 - 115,783 -
Due from other funds - 115,594 - 115,594 38,199
Inventories - 1,646,420 - 1,646,420 -
Restricted:
Cash and investments - 2,674,009 - 2,674,009 -
Cash with fiscal agent 8,745,528 1,920,011 293,120 10,958,659 -
Cash held for rate stabilization - 10,279,372 - 10,279,372 -
Total Current Assets 36,687,882 22,283,155 3,319,784 62,290,821 4,457,579
Noncurrent:
Deferred debt issuance costs 798,367 230,984 87,753 1,117,104 -
Advances to other funds 639,458 17,600,161 - 18,239,619 18,468,143
Capital assets - net of accumulated depreciation 95,698,049 31,893,800 9,417,354 137,009,203 1,635,898
Total Noncurrent Assets 97,135,874 49,724,945 9,505,107 156,365,926 20,104,041
Total Assets 133,823,756$ 72,008,100$ 12,824,891$ 218,656,747$ 24,561,620$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 1,806,827$ 1,205,807$ 526,461$ 3,539,095$ 594,517$
Accrued liabilities 114,114 122,619 47,386 284,119 182,120
Accrued interest 1,696,285 240,511 45,615 1,982,411 -
Deposits payable 782,159 1,983,919 - 2,766,078 1,423
Due to other governments 23,762 - - 23,762 -
Due to other funds 450,000 - 22,780 472,780 37,954
Accrued compensated absences 62,377 203,665 36,425 302,467 223,408
Accrued claims and judgments - - - - 987,464
Bonds, notes, and loans payable 1,135,000 480,000 115,000 1,730,000 -
Total Current Liabilities 6,070,524 4,236,521 793,667 11,100,712 2,026,886
Noncurrent:
Accrued compensated absences 345,661 257,919 63,211 666,791 286,203
Accrued claims and judgments - - - - 1,315,270
Bonds, notes, and loans payable 72,415,969 9,016,498 1,752,914 83,185,381 -
Total Noncurrent Liabilities 72,761,630 9,274,417 1,816,125 83,852,172 1,601,473
Total Liabilities 78,832,154 13,510,938 2,609,792 94,952,884 3,628,359
Net Assets:
Invested in capital assets, net of related debt 28,036,378 22,397,302 7,549,440 57,983,120 1,635,898
Restricted for debt service 2,856,230 1,920,011 293,120 5,069,361 -
Unrestricted 24,098,994 34,179,849 2,372,539 60,651,382 19,297,363
Total Net Assets 54,991,602 58,497,162 10,215,099 123,703,863 20,933,261
Total Liabilities and Net Assets 133,823,756$ 72,008,100$ 12,824,891$ 218,656,747$ 24,561,620$
Reconciliation of Net Assets to the Statement of Net Assets
Net Assets per Statement of Net Assets - Proprietary Funds 123,703,863$
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds activities related to the enterprise funds 1,371,565
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (1)
Net Assets per Statement of Net Assets 125,075,427$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 26
CITY OF AZUSA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Operating Revenues:
Sales and service charges 20,592,358$ 35,192,941$ 4,491,148$ 60,276,447$ 11,011,254$
Interdepartmental charges 43,603 1,221,423 - 1,265,026 -
Miscellaneous 2,075 57,903 11,164 71,142 120,043
Total Operating Revenues 20,638,036 36,472,267 4,502,312 61,612,615 11,131,297
Operating Expenses:
Cost of sales and services 3,091,155 151,766 - 3,242,921 -
Source of supply 1,005,148 26,042,269 - 27,047,417 368,937
Pumping 43,946 - - 43,946 -
Transmission/collection 1,560,995 2,938,419 - 4,499,414 -
Treatment 456,608 - 1,513,518 1,970,126 -
Refuse collection - - 2,924,303 2,924,303 -
Claims expense - - - - 1,298,511
Administration and general 6,201,717 5,828,529 - 12,030,246 8,523,759
Depreciation expense 3,231,508 1,239,766 317,030 4,788,304 323,813
Total Operating Expenses 15,591,077 36,200,749 4,754,851 56,546,677 10,515,020
Operating Income (Loss)5,046,959 271,518 (252,539) 5,065,938 616,277
Nonoperating Revenues (Expenses):
Taxes - - 555,121 555,121 -
Intergovernmental 84 - - 84 -
Interest revenue 576,697 1,090,532 80,195 1,747,424 1,119,590
Interest expense (3,320,896) (511,391) (123,892) (3,956,179) -
Special franchise fees (316,101) (3,064,635) (31,702) (3,412,438) -
Gain (loss) on disposal of capital assets 3,012 (706) - 2,306 (31,812)
Total Nonoperating
Revenues (Expenses)(3,057,204) (2,486,200) 479,722 (5,063,682) 1,087,778
Income (Loss) Before Transfers 1,989,755 (2,214,682) 227,183 2,256 1,704,055
Transfers in - - - - 38,200
Transfers out (468,441) (8,100) (730,000) (1,206,541) (179,839)
Changes in Net Assets 1,521,314 (2,222,782) (502,817) (1,204,285) 1,562,416
Net Assets:
Beginning of Year, as
previously reported 53,811,667 60,720,511 10,738,865 125,271,043 19,368,008
Restatements (341,379) (567) (20,949) (362,895) 2,837
Beginning of Fiscal Year, as restated 53,470,288 60,719,944 10,717,916 124,908,148 19,370,845
End of Fiscal Year 54,991,602$ 58,497,162$ 10,215,099$ 123,703,863$ 20,933,261$
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 (1,204,285)$
Adjustment to reflect the consolidation of current fiscal year
internal service funds activities related to enterprise funds (1)
Changes in Net Assets of Business-Type Activities per Statement of Activities (1,204,286)$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 27
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users 16,925,973$ 34,790,974$ 4,494,584$ 56,211,531$ 11,146,218$
Cash received from/(paid to) interfund service provided 43,603 1,221,423 - 1,265,026 -
Cash paid to suppliers for goods and services (5,397,041) (29,013,649) (3,415,789) (37,826,479) (2,148,467)
Cash paid to employees for services (6,170,795) (5,898,380) (1,010,759) (13,079,934) (8,512,523)
Net Cash Provided (Used) by Operating Activities 5,401,740 1,100,368 68,036 6,570,144 485,228
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (468,441) (8,100) (730,000) (1,206,541) (179,839)
Cash transfers in - - - - 38,200
Cash received from other funds - - - - (38,199)
Cash payment made to other funds 450,000 - 22,780 472,780 (4,583)
Advance to other funds (459,029) (80,080) - (539,109) (1,621,206)
Net Cash Provided (Used) by
Non-Capital Financing Activities (477,470) (88,180) (707,220) (1,272,870) (1,805,627)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (3,524,136) (1,148,386) (789,373) (5,461,895) (116,867)
Principal paid on capital debt (1,206,850) (452,888) (99,811) (1,759,549) -
Interest paid on capital debt (3,300,583) (499,242) (117,552) (3,917,377) -
Special franchise fees (316,101) (3,064,635) (31,702) (3,412,438) -
Taxes - - 555,121 555,121 -
It tl t 84 84
Business-Type Activities - Enterprise Funds
Water Light
Intergovernmental grants 84 - - 84 -
Net Cash Provided (Used) by
Capital and Related Financing Activities (8,347,586) (5,165,151) (483,317) (13,996,054) (116,867)
Cash Flows from Investing Activities:
Repayment of loans (1,541) (91) - (1,632) 3,907
Interest received 560,535 1,090,831 88,285 1,739,651 1,196,476
Net Cash Provided (Used) by
Investing Activities 558,994 1,090,740 88,285 1,738,019 1,200,383
Net Increase (Decrease) in Cash
and Cash Equivalents (2,864,322) (3,062,223) (1,034,216) (6,960,761) (236,883)
Cash and Cash Equivalents at Beginning of Year 33,784,295 19,095,772 3,781,516 56,661,583 4,589,272
Cash and Cash Equivalents at End of Year 30,919,973$ 16,033,549$ 2,747,300$ 49,700,822$ 4,352,389$
See Notes to Financial Statements 28
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities - Enterprise Funds
Water Light
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)5,046,959$ 271,518$ (252,539)$ 5,065,938$ 616,277$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 3,231,508 1,239,766 317,030 4,788,304 323,813
(Increase) decrease in accounts receivable (3,627,801) (282,730) (7,713) (3,918,244) 14,972
(Increase) decrease in deposits receivable (3) - - (3) -
(Increase) decrease in prepaid expense 2,162 434 - 2,596 (2,575)
(Increase) decrease in inventories 184 111,175 - 111,359 -
Increase (decrease) in accounts payable 755,022 7,196 (3,938) 758,280 286,991
Increase (decrease) in accrued liabilities 1,439 (6,067) 6,416 1,788 6,371
Increase (decrease) in due to other governments 3,446 - - 3,446 -
Increase (decrease) in deposits payable (40,659) (177,140) (15) (217,814) (51)
Increase (decrease) in claims and judgments - - - - (765,435)
Increase (decrease) in compensated absences 29,483 (63,784) 8,795 (25,506) 4,865
Total Adjustments 354,781 828,850 320,575 1,504,206 (131,049)
Net Cash Provided (Used) by
Operating Activities 5,401,740$ 1,100,368$ 68,036$ 6,570,144$ 485,228$
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets -$ -$ -$ -$ (31,812)$
Amortization of bond discount/premium 111,848 (2,338) (5,190) 104,320 -
Amortization of deferred debt issuance costs 40,176 23,910 7,978 72,064 -
See Notes to Financial Statements 29
CITY OF AZUSA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2010
Agency
Fund
Assets:
Pooled cash and investments 2,821,799$
Receivables:
Accounts 5,000
Taxes 88,256
Total Assets 2,915,055$
Liabilities:
Accounts payable 2,861,184$
Accrued liabilities 10,102
Deposits payable 38,175
Due to other governments 5,594
Total Liabilities 2,915,055$
See Notes to Financial Statements 30
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies
The financial statements of the City of Azusa, California (City) have been prepared in
conformity with Generally Accepted Accounting Principles (GAAP) as applied to government
units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial reporting
principles. The significant accounting policies of the City of Azusa are described below:
a. Description of the Reporting Entity
The City of Azusa, the primary government, was incorporated on September 29, 1898,
under the general laws of the State of California. It is governed under a Council-Manager
form of government.
As required by accounting principles generally accepted in the United States of America,
these financial statements present the City and its component units, entities for which the
City is considered to be financially accountable. The City is considered to be financially
accountable for an organization if the City appoints a voting majority of that organization's
governing body and the City is able to impose its will on that organization or there is a
potential for that organization to provide specific financial benefits to or impose specific
financial burdens on the City. The City is also considered to be financially accountable if
that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set
rates or charges, or issued bonded debt without approval from the City). In certain cases,
other organizations are included as component units if the nature and significance of their
relationship with the City are such that their exclusion would cause the City's financial
statements to be misleading or incomplete.
All of the City's component units are considered to be blended component units. Blended
component units, although legally separate entities, are, in substance, part of the City's
operations and so data from these units are reported with the interfund data of the City.
The following organizations are considered to be component units of the City.
A description of these component units and the method of incorporating their financial
information in the accompanying basic financial statements are summarized as follows:
Redevelopment Agency of the City of Azusa
The Redevelopment Agency of the City of Azusa was established to upgrade
residential neighborhoods, improve the commercial environment, rehabilitate blighted
areas, generate added employment opportunities, and to strengthen the economic
base of the community. The governing board of the Agency is composed of the same
individuals that serve as council members for the City of Azusa. Upon completion,
separate financial statements of the Agency can be obtained at City Hall.
31
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Azusa Public Financing Authority
The Azusa Public Financing Authority was established to provide financing to the City
of Azusa for specified projects. The governing board of the Authority is composed of
the same individuals that serve as council members for the City of Azusa. Upon
completion, separate financial statements of the Authority can be obtained at City
Hall.
Azusa Industrial Development Authority
The Azusa Industrial Development Authority was established to promote industrial
and commercial expansion and development within the City of Azusa. The governing
board of the Authority is composed of the same individuals that serve as council
members for the City of Azusa. Separate financial statements are not prepared for
the Authority because it has no activity to report.
b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment is offset by program revenues. Direct expenses are those that
are clearly identifiable with a specific function or segment. Program revenues include:
1) charges to customers or applicants who purchase, use or directly benefit from goods,
services or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds
are reported as separate columns in the fund financial statements.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements, however agency funds have no measurement focus.
Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available.
32
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose,
the City considers revenues to be available if they are collected within 60 days of the end
of the current fiscal period, with the exception of gas tax, which is considered available if
collected within 310 days of year-end. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. All other revenue items are considered to be measurable and
available only when cash is received by the government.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for
in another fund.
The Redevelopment Agency Capital Projects Fund account for the costs
associated with the implementation of separate redevelopment projects.
The Redevelopment Agency Debt Service Fund accounts for payments of
principal and interest on the long-term debt of the Azusa Redevelopment
Agency.
The City reports the following major proprietary funds:
The Water Fund accounts for the costs of labor and materials used in the
maintenance, construction, and consumption of water services within the City’s
water service area.
The Light Fund accounts for the costs of labor and materials used in the
maintenance, construction and consumption of electric services throughout the
City.
Additionally, the City reports the following fund types:
Special Revenue Funds account for revenues which are restricted for specific
purposes.
Capital Projects Fund accounts for financial resources to be used for the
acquisition or construction of major capital improvement as outlined in the City’s
Capital Improvement Program.
Debt Service Funds account for the accumulation of resources and payment of
long-term debt.
The Agency Fund is used to account for assets held by the City as trustee or
agent for individuals, private organizations and other governmental units.
33
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The Internal Service Funds are used to finance and account for activities involved in
rendering services to departments within the City. Costs of materials and services used
are accumulated in these funds and charged to the user departments as such goods are
delivered or services rendered.
Private-sector standards of accounting and financial reporting issued prior to
December 1989, generally are followed in both the government-wide and proprietary fund
financial statements to the extent that those standards do not conflict with or contradict
guidance of the Governmental Accounting Standards Board. Governments also have the
option of following subsequent private-sector guidance for their business-type activities
and enterprise funds, subject to this same limitation. The government has elected not to
follow subsequent private-sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are charges
between the government's proprietary funds function 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.
Amounts reported as program revenues include: 1) charges to customers or applicants
for goods, services or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the Enterprise Funds are charges to customers for
sales and services. Operating expenses for Enterprise Funds include the cost of sales
and services, administrative expenses and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the City's
policy to use restricted resources first, then unrestricted resources as needed.
The City’s fiduciary fund is an agency fund. Agency funds are custodial in nature, assets
equal liabilities. Agency funds are presented on the accrual basis of accounting.
d. Assets, Liabilities and Net Assets or Equity
Cash and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand
deposits and short-term investments with original maturities of three months or less
from the date of acquisition. For financial statement presentation purposes, cash and
cash equivalents are shown as both restricted and unrestricted cash and investments
in the Proprietary Funds.
34
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Investments for the City, as well as for its component units, are reported at fair value.
The City's policy is generally to hold investments until maturity or until market values
equal or exceed cost. The State Treasurer's Investment Pool operates in accordance
with appropriate state laws and regulations. The reported value of the pool is the
same as the fair value of the pool shares.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other
funds" (i.e., the current portion of interfund loans) or "advances to/from other funds"
(i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a
fund balance reserve account in applicable governmental funds to indicate that they
are not available for appropriation and are not expendable available financial
resources.
All trade and property tax receivables are shown net of an allowance for
uncollectibles.
Property tax revenue is recognized in the fiscal year for which the taxes have been
levied providing they become available. Available means then due, or past due and
receivable within the current period and collected within the current period or
expected to be collected soon enough thereafter (not to exceed 60 days) to be used
to pay liabilities of the current period. The County of Los Angeles collects property
taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in
January preceding the fiscal year for which the taxes are levied. The tax levy covers
the fiscal period July 1 to June 30. All secured personal property taxes and one-half
of the taxes on real property are due November 1; the second installment is due
February 1. All taxes are delinquent, if unpaid, on December 10 and April 10,
respectively. Unsecured personal property taxes become due on the first of March
each year and are delinquent on August 31.
Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional
classifications are defined as follows:
General Government includes legislative activities which have a primary
objective of providing legal and policy guidelines for the City. Also included in
this classification are those activities which provide management or support
services across more than one functional area, including Library Services.
Public Safety includes those activities which involve the protection of people
and property.
Community Development includes those activities which involve the
enhancing of the general quality of life.
35
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Parks and Recreation includes those activities which involve community park
maintenance and recreational activities within the community.
Public Works includes those activities which involve the maintenance and
improvement of City streets and roads.
Debt Service includes those activities that account for the payment of long-
term debt principal, interest and fiscal charges.
Inventories, Prepaid Costs and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method.
Inventory costs are recorded as an expense when used.
Certain payments to vendors reflect costs applicable to future accounting
periods and are recorded as prepaid items in both government-wide and fund
financial statements.
Land purchased for resale is capitalized as inventory at acquisition costs or
net realizable value, if lower.
Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because their use
is limited by applicable bond covenants. In addition, funds have been restricted for
future capital improvements by City resolution.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets
(e.g., roads, bridges, sidewalks and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the City as assets with an initial, individual
cost of more than $5,000 (amount not rounded), and an estimated useful life in
excess of two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
In accordance with GASB Statement No. 34, the City has reported general
infrastructure assets acquired in the current year and retroactively reported prior
year’s acquisitions prior to fiscal years ended after June 30, 1980.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed.
36
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Property, plant and equipment of the primary government, as well as the component
units, are depreciated using the straight-line method over the following estimated
useful lives:
Assets Years
Land Improvements 20
Buildings and structure 30 - 50
Machinery and equipment 8 - 30
Automotive equipment 5 - 15
Infrastructure 30 - 65
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the governmental activities, business-type activities or proprietary fund type
statement of net assets. Bond premiums and discounts, as well as issuance costs, are
deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as deferred charges and amortized over the term of the
related debt.
In the fund financial statements, governmental fund types recognize bond premiums
and discounts, as well as bond issuance costs, during the current period. The face
amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted by
outside parties for use for a specific purpose. Designations of fund balance represent
tentative management plans that are subject to change.
e. Compensated Absences
In accordance with GASB Statement No. 16, a liability is recorded for unused vacation
and similar compensatory leave balances since the employees' entitlement to these
balances are attributable to services already rendered and it is probable that virtually all
of these balances will be liquidated by either paid time off or payments upon termination
or retirement. Under GASB Statement No. 16, a liability is recorded for unused sick leave
balances to the extent that it is probable that the unused balances will result in
termination payments. Generally, vacation, sick leave and compensatory absences vest
and are recorded as the obligation is incurred. If material, a proprietary fund liability is
accrued for all earned but unused leave benefits relating to the operations of the
proprietary funds. A current liability is accrued in the governmental funds for material
leave benefits due on demand to governmental fund employees that have terminated
37
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
prior to year-end. These non-current amounts will be recorded as fund expenditures in
the year in which they are paid or become due on demand to terminated employees.
f. Claims and Judgments
The City records a liability for litigation, judgments and claims when it is probable that an
asset has been impaired or a liability has been incurred prior to year-end and the
probable amount of loss (net of any insurance coverage) can be reasonably estimated.
Claims incurred but not reported are recorded as a liability when the liability has been
incurred or an asset has been impaired and the amounts can be reasonably determined.
This liability is recorded in the internal service fund that accounts for the City's
self-insurance activities.
g. Cash Equivalents for Statement of Cash Flows
For purposes of the statement of cash flows, cash equivalents are defined as short-term,
highly liquid investments that are both readily convertible to known amounts of cash or so
near their maturity that they present insignificant risk of change in value because of
changes in interest rates. Investments purchased within three months of original maturity
are considered to be cash equivalents. Cash and cash equivalents in the accompanying
statements include the proprietary funds' share of the cash and investment pool of the
City of Azusa. Cash and cash equivalents for proprietary funds are reported in the
accompanying financial statements as:
Enterprise Internal Service
Cash and investments 28,462,791$ 4,352,389$
Cash with fiscal agent 10,958,659 -
Cash held for rate stabilization 10,279,372 -
Total 49,700,822$ 4,352,389$
h. Reconciliation of Government-Wide and Fund Financial Statements
Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net assets:
The governmental fund balance sheet includes reconciliation between fund balance,
governmental funds and net assets of governmental activities as reported in the
government-wide statement of net assets. One element of that reconciliation explains
that "long-term debt and compensated absences have not been included in the
governmental fund activity." The detail of the ($74,692,675) long-term debt difference
is as follows:
38
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Long-term debt:
Tax allocation bonds payable (55,814,889)$
Developer loans payable (9,366,038)
Certification of participation (3,480,000)
Taxable pension bonds (6,735,000)
Deferred discount on bonds and COP
(to be amortized over life of debt)703,252
Net adjustment to reduce fund balance of total
governmental funds to arrive at net assets of
governmental activities (74,692,675)$
Explanation of certain differences between the governmental fund statement of revenues,
expenditures and changes in fund balances and the government-wide statement of
activities:
The governmental fund statement of revenues, expenditures and changes in fund
balances includes reconciliation between net changes in fund balances of total
governmental funds and changes in net assets of governmental activities as reported
in the government-wide statement of activities.
One element of that reconciliation explains that "Governmental funds report capital
outlays as expenditures. However, in the statement of activities the cost of those
assets is allocated over their estimated useful lives and reported as depreciation
expense." The detail of this $600,788 difference is as follows:
Capital outlay 2,804,345$
Depreciation expense (2,128,545)
Loss on disposal of asset (75,012)
Net adjustment to increase net changes in fund
balances of total governmental funds to arrive at
changes in net assets of governmental activities 600,788$
Another element of that reconciliation states that "the issuance of long-term debt
(e.g., bonds, leases) provides current financial resources to governmental funds, while
the repayment of the principal of long-term debt consumes the current financial
resources of governmental funds." Neither transaction, however, has any effect on net
assets. Also, governmental funds report the effect of issuance costs, premiums,
discounts and similar items when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities. The detail of this $1,530,865
difference is as follows:
39
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Debt issued or incurred:
Developer loan (391,867)$
Accreted interest (83,688)
Principal repayments and amortizations:
Tax allocation bonds 1,325,000
Certificate of participation 215,000
Pension bonds 480,000
Bond discount/premium (13,580)
Net adjustment to decrease net changes in fund balance
of total governmental funds to arrive at changes in net
assets of governmental activities.1,530,865$
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
The City adopts an annual budget prepared on the modified accrual basis of accounting
for the general, special revenue, debt service and capital projects funds and on the
accrual basis of accounting for the proprietary funds of the City. According to Section
3.04.040 of the Azusa Municipal Code, the City Council is required to adopt the annual
budget on or before the first Monday in July. The City is not legally required to report on
the budget approved. Where appropriations exceed actual expenditures, the excess
amounts lapse but can be re-appropriated in the subsequent year subject to City Council
approval.
According to Section 2-450 of the Azusa Municipal Code, budget amendments increasing
the total budget of the City by $100,000 or more must be approved by City Council.
Spending control (legal level of control) is established by the amount of expenditures
budgeted at the department level. During the year, several supplementary appropriations
were necessary. Individual amendments were not material in relation to the original
appropriations.
b. Expenditures Over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:
Expenditures Appropriations Excess
General Fund:
Administration 552,079$ 536,175$ (15,904)$
Admin Services / Business License 308,948 306,100 (2,848)
Police 14,448,485 14,067,034 (381,451)
Code Enforcement 475,616 469,845 (5,771)
Parks Maintenance 1,513,641 1,513,385 (256)
Fund
40
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 2: Stewardship, Compliance and Accountability (Continued)
c. Deficit Fund Balance
The following funds had a deficit fund balance as of June 30, 2010:
Major Funds:
Governmental:
Debt Service Fund - Redevelopment Agency (29,155,199)$
Nonmajor Funds:
Governmental:
Capital Projects (65,670)
Enterprise Funds Non Major:
Refuse Contract (117,199)
Internal Service Funds:
Self Insurance (198,273)
Central Services (6,950)
These deficits will be funded through future years’ revenues and transfers.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2010, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities 26,062,616$
Business-type activities 50,890,831
Fiduciary funds 2,821,799
Total Cash and Investments 79,775,246$
The City of Azusa maintains a cash and investment pool that is available for use for all funds.
Each fund type's position in the pool is reported on the combined balance sheet as cash and
investments. The City has adopted an investment policy, which authorizes it to invest in
various investments.
Deposits
At June 30, 2010, the carrying amount of the City’s deposits was $3,748,243, and the
bank balance was $4,638,069. The $889,826 difference represents outstanding checks
and other reconciling items.
The California Government Code requires California banks and savings and loan
associations to secure a City’s deposits by pledging governm ent securities with a value of
110% of a City’s deposits. California law also allows financial institutions to secure a
City’s deposits by pledging first trust deed mortgage notes having a value of 150% of a
City’s total deposits. The City Treasurer may waive the collateral requirement for
deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in
federal and state chartered banks is held in safekeeping by an authorized Agent of
41
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
Depository recognized by the State of California Department of Banking. The collateral
for deposits with savings and loan associations is generally held in safekeeping by the
Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These
securities are physically held in an undivided pool for all California public agency
depositors. Under Government Code Section 53655, the placement of securities by a
bank or savings and loan association with an “Agent of Depository” has the effect of
perfecting the security interest in the name of the local governmental agency.
Accordingly, all collateral held by California Agents of Depository are considered to be
held for, and in the name of, the local governmental agency.
Investments
Under provision of the City’s investment policy, and in accordance with the California
Government Code, the following investments are authorized:
U.S. Treasury Obligations (bills, notes and bonds)
U.S. Government Agency Securities and Instrumentalities of Government
Sponsored Corporations
Mutual Funds
Commercial Paper
Repurchase Agreements
Certificates of Deposit
Negotiable Certificates of Deposit
Passbook Savings Accounts
Medium Term Corporate Notes
Bank Money Market Accounts
Local Agency Investment Fund (State Pool)
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond
trustee. Investments of debt proceeds held by a bond trustee are governed by provisions
of the debt agreements rather than the general provisions of the California Government
Code or the City’s investment policy.
Investments 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. LAIF is overseen by the Local Agency Investment
Advisory Board, which consists of five members, in accordance with State statute. The
State Treasurer’s Office audits the fund annually. The fair value of the position in the
investment pool is the same as the value of the pool shares.
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for
certain investments and for External Investment Pools, as of July 1, 1997. GASB
Statement No. 31 establishes fair value standards for investments in participating interest
earning investment contracts, external investment pools, equity securities, option
contracts, stock warrants and stock rights that have readily determinable fair values.
42
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
Accordingly, the City reports its investments at fair value in the balance sheet. All
investment income, including changes in the fair value of investments, is recognized as
revenue in the operating statement.
Credit Risk
The City's investment policy limits investments in medium term notes (MTNs) to those
rated A or higher by Standard and Poor's (S&P) or by Moody's. At June 30, 2010, the
City’s investments in Federal Agency securities consisted of investments with Federal
Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage
Association, and Federal Farm Credit Bank . At June 30, 2010, all Federal Agency
Securities were rated AAA by Standard & Poor’s. All securities were investment grade
and were legal under State and City law. As of June 30, 2010, the City's investments in
external investment pools and money market mutual funds are unrated.
Custodial Credit Risk
The 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 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 to a transaction, a government will not be able to recover the value of
investment or collateral securities that are in the possession of an outside party.
As of June 30, 2010, none of the City’s deposits or investments were exposed to
custodial credit risk.
Concentration of Credit Risk
The City’s investment policy imposes restriction on the percentage that the City can invest
in certain type of investments. In addition, GASB 40 requires a separate disclosure if any
single issuer comprises more than 5% of the total investment value.
As of June 30, 2010, the City has investments of $15,167,840 (20%) with Federal Farm
Credit Bank, $16,369,021 (22%) with Federal Home Loan Bank and $7,035,160 (9%) with
Federal National Mortgage Association. Investments guaranteed by the U.S. government,
investments in mutual funds and external investment pools are excluded from this
requirement.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The City's investment
policy states that no investment may have a maturity of more than five years without
receiving prior City Council approval. The only exception to these maturity limits shall be
the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated
with bond issues may have a maturity of more than five years. The City has elected to
use the segmented time distribution method of disclosure for its interest rate risk. As of
June 30, 2010, the City had the following investments and original maturities:
43
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
6 months 6 months 1 to 3 3 to 5 More than Fair
or less to 1 year years years 5 years Value
Federal agency securities -$ -$ 10,342,821$ 31,261,170$ -$ 41,603,991$
Local Agency Investment Fund 15,995,997 - - - - 15,995,997
Money market mutual funds 2,642,693 - - - - 2,642,693
Cash with Fiscal Agents:
Money market mutual funds 9,874,222 - - - - 9,874,222
Guaranteed Investment Contracts - - - 2,863,916 284,527 3,148,443
Repurchase Agreements - - - - 2,761,657 2,761,657
28,512,912$ -$ 10,342,821$ 34,125,086$ 3,046,184$ 76,027,003$
Remaining Investment Maturities
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2010, was as follows:
Beginning Ending
Balance Transfers Increases Decreases Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land 1,729,956$ -$ -$ -$ 1,729,956$
Construction-in-progress 473,503 (456,782) 241,855 2,621 255,955
Total Capital Assets
Not Being Depreciated 2,203,459 (456,782) 241,855 2,621 1,985,911
Capital Assets, Being Depreciated:
Land improvements 5,833,825 - - - 5,833,825
Buildings and structures 11,104,402 311,711 620,653 - 12,036,766
Machinery and equipment 6,730,844 145,054 195,940 36,613 7,035,225
Automotive equipment 3,656,967 - 367,272 516,864 3,507,375
Infrastructure 42,517,738 17 1,489,467 - 44,007,222
Total Capital Assets
Being Depreciated 69,843,776 456,782 2,673,332 553,477 72,420,413
Less Accumulated Depreciation:
Land improvements 2,774,342 - 191,887 - 2,966,229
Buildings and structures 4,171,229 - 282,063 - 4,453,292
Machinery and equipment 5,358,896 - 286,559 36,611 5,608,844
Automotive equipment 2,349,835 - 262,593 402,567 2,209,861
Infrastructure 26,345,967 - 1,253,236 - 27,599,203
Total Accumulated Depreciation 41,000,269 - 2,276,338 439,178 42,837,429
Total Capital Assets
Being Depreciated, Net 28,843,507 456,782 396,994 114,299 29,582,984
Governmental Activities
Capital Assets, Net 31,046,966$ -$ 638,849$ 116,920$ 31,568,895$
44
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 4: Capital Assets (Continued)
Beginning Ending
Balance Transfers Increases Decreases Balance
Business-Type Activities:
Capital Assets, Not Being Depreciated:
Land 2,988,973$ -$ -$ -$ 2,988,973$
Construction-In-Progress 51,288,674 (49,074,067) 1,574,087 14,594 3,774,100
Total Capital Assets
Not Being Depreciated 54,277,647 (49,074,067) 1,574,087 14,594 6,763,073
Capital Assets, Being Depreciated:
Land improvements 1,175,769 - 20,400 - 1,196,169
Building and structures 22,612,752 - - - 22,612,752
Machinery and equipment 11,878,677 263,586 148,987 6,121 12,285,129
Automotive equipment 3,513,617 - 314,914 241,815 3,586,716
Infrastructure 89,655,121 48,810,481 3,448,809 - 141,914,411
Total Capital Assets
Being Depreciated 128,835,936 49,074,067 3,933,110 247,936 181,595,177
Less Accumulated Depreciation:
Land improvements:556,003 - 39,179 - 595,182
Building and structures:6,615,530 - 538,768 - 7,154,298
Machinery and equipment:7,664,231 - 607,813 5,747 8,266,297
Automotive equipment:2,881,659 - 188,383 226,007 2,844,035
Infrastructure:27,881,371 - 3,894,485 - 31,775,856
Total Accumulated Depreciation 45,598,794 - 5,268,628 231,754 50,635,668
Total Capital Assets
Being Depreciated, Net 83,237,142 49,074,067 (1,335,518) 16,182 130,959,509
Business-Type Activities
Capital Assets, Net 137,514,789$ -$ 238,569$ 30,776$ 137,722,582$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government 898,214$
Public safety 143,776
Community development 17,968
Parks and recreation 402,904
Public works 665,682
Internal service funds 147,794
Total 2,276,338$
Business-Type Activities:
Water 3,535,244$
Light 1,240,333
Sewer/Wastewater 317,032
Internal service funds 176,019
Total 5,268,628$
45
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt
a. Long-Term Debt – Governmental Activities
The following is a summary of changes in long-term debt of the City for the year ended
June 30, 2010:
Balances at Balances at Due Within
July 1, 2009 Additions Deletions June 30, 2010 One Year
City:
Compensated absences 3,183,001$ 833,747$ 700,380$ 3,316,368$ 776,292$
Net OPEB liability 2,343,605 1,838,218 - 4,181,823 -
2008 Taxable pension funding bonds 7,215,000 - 480,000 6,735,000 555,000
Total City 12,741,606 2,671,965 1,180,380 14,233,191 1,331,292
Public Financing Authority:
2003 Certificates of participation 3,695,000 - 215,000 3,480,000 225,000
Redevelopment Agency:
Tax allocation bonds, 2003 Series A 9,265,000 - 450,000 8,815,000 460,000
Tax allocation bonds, 2005 Series A 9,346,201 83,688 *- 9,429,889 -
Tax allocation bonds, 2007 Series A 15,440,000 - 365,000 15,075,000 385,000
Tax allocation bonds, 2007 Series B 4,710,000 - 85,000 4,625,000 85,000
Tax allocation bonds, 2008 Series A 6,715,000 - 70,000 6,645,000 80,000
Tax allocation bonds, 2008 Series B 11,580,000 - 355,000 11,225,000 125,000
Obligation under developer
agreements 8,974,171 391,867 - 9,366,038 -
Total Redevelopment Agency 66,030,372 475,555 1,325,000 65,180,927 1,135,000
Internal Service Funds:
Compensated absences 212,217 52,275 38,429 226,063 40,541
Claims and judgments payable 3,068,169 550,265 1,315,700 2,302,734 987,464
Total Internal Service 3,280,386 602,540 1,354,129 2,528,797 1,028,005
Total Governmental
Long-term Debt 85,747,364$ 3,750,060$ 4,074,509$ 85,422,915 3,719,297$
Less unamortized original issue discount (703,252)
84,719,663$
* Addition of $83,688 related to accreted interest for the fiscal year.
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 of the
notes to financial statements. For the governmental activities, the liability will be paid in
future years by the General Fund.
Net OPEB Liability
The City’s policies relating to OPEB are described in Note 9 of the notes to financial
statements. For governmental activities, the liability will be paid in future years by the
General Fund.
46
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
2008 Taxable Pension Funding Bonds
In December 2008, the City issued $7,215,000 pension funding bonds to fund the City’s
actuarial accrued liability with respect to its public safety plan. The bonds bear interest at
6.50% and the principal matures in amounts ranging from $480,000 to $1,175,000 on
January 1 each year from 2010 through 2018. The annual principal requirements to
amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2010, are as
follows:
Principal Interest
2010-2011 555,000$ 437,775$
2011-2012 625,000 401,700
2012-2013 700,000 361,075
2013-2014 780,000 315,575
2014-2015 870,000 264,875
2015-2020 3,205,000 430,300
Total 6,735,000$ 2,211,300$
Taxable Pension Funding Bonds
Series 2008
2003 Certificates of Participation
On August 7, 2003, the Azusa Public Financing Authority issued the 2003 Lease
Revenue Refunding Certificates of Participation in the amount of $4,825,000 to refund
the outstanding balance of the 1994 Certificates of Participation. The bonds are subject
to optional and mandatory redemption prior to maturity and are payable from certain
revenue consisting of certain base rental payments with respect to the lease agreement
between the City and the Authority.
Debt covenants require that the Authority maintain a reserve account equal to the
maximum annual debt service on all outstanding certificates. At June 30, 2010, the
reserve requirement of $452,500 was fully funded.
The certificates maturing from 2004 to 2020 are serial certificates payable in annual
installments ranging from $200,000 to $845,000. Interest is payable semi-annually on
each August 1 and February 1, commencing August 1, 2004, at rates ranging from 2.00%
to 4.40% per annum. The outstanding principal balance at June 30, 2010, was
$3,480,000.
The annual requirements to repay the outstanding indebtedness at June 30, including
interest, are shown in the schedule below:
47
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Principal Interest
2010-2011 225,000$ 134,560$
2011-2012 230,000 127,588
2012-2013 240,000 119,650
2013-2014 245,000 111,040
2014-2015 255,000 101,849
2015-2020 1,440,000 343,734
2020-2025 845,000 18,590
Total 3,480,000$ 957,011$
2003 Certificates of
Participation
Tax Allocation Bonds Payable
Tax Allocation Bonds
2003 Tax Allocation Refunding Bonds, Series A
The Azusa Redevelopment Agency issued $11,580,000 Merged Project Area Tax
Allocation Refunding Bonds, 2003 Series A, dated December 1, 2003 to refund the
1994 Series A Merged Project Area Tax Allocation Bonds. Principal payments
ranging from $425,000 to $1,235,000 are due annually on August 1 beginning in the
year 2004 through the year 2023, interest rates ranging from 3.00% to 4.60% per
annum are due and payable on February 1 and August 1 and are secured by tax
increment revenues. Debt service payments on the bonds are payable from pledged
tax increment revenues. The outstanding principal balance at June 30, 2010, was
$8,815,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest, are as follows:
Principal Interest
2010-2011 460,000$ 354,279$
2011-2012 475,000 339,779
2012-2013 495,000 323,516
2013-2014 515,000 305,519
2014-2015 530,000 286,248
2015-2020 2,990,000 1,086,750
2020-2025 3,350,000 344,073
Totals 8,815,000$ 3,040,164$
2003 Tax Allocation Refunding
Bonds, Series A
2005 Tax Allocation Bonds, Series A
The Azusa Redevelopment Agency issued $9,022,800 Merged Project Area Tax
Allocation Bonds, 2005 Series A, dated February 17, 2005, to finance redevelopment
projects. The issue consists of $7,765,000 Current Interest Bonds which are subject
to annual sinking fund installment payments ranging from $715,000 to $1,170,000
beginning August 1, 2027 through August 1, 2034, bearing interest at 4.50% per
48
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
annum: and Capital Appreciation Bonds of $1,257,800 due beginning August 1, 2024
through August 1, 2027, bearing interests rates ranging from 5.16% to 5.33% per
annum. Debt service payments on the bonds are secured by tax increment revenues.
Debt service payments on the bonds are payable from pledged tax increment
revenues. The outstanding principal balance at June 30, 2010, was $9,429,889.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest are as follows:
Principal Interest
2010-2011 -$ 349,425$
2011-2012 - 349,425
2012-2013 - 349,425
2013-2014 - 349,425
2014-2015 - 349,425
2015-2020 - 1,747,125
2020-2025 534,155 1,747,125
2025-2030 4,135,734 2,104,077
2030-2035 4,760,000 2,491,464
Totals 9,429,889$ 9,836,916$
Refunding Bonds
2005 Tax Allocation
2007 Tax Allocation Bonds, Series A
The Azusa Redevelopment Agency issued $15,780,000 Series A Merged Project
Area Tax Allocation Bonds, dated July 31, 2007 to finance redevelopment projects.
Current Interest Bonds are subject to annual sinking fund installment payments
ranging from $340,000 to $365,000 beginning August 1, 2008 through
August 1, 2009, bearing interest rates ranging from 5.27% to 5.30% per annum.
Term Bonds are due beginning August 1, 2010 through August 1, 2035, with
installment payments ranging from $385,000 to $1,625,000, bearing interest rates
ranging from 5.77% to 6.15% per annum. Debt service payments on the bonds are
payable from pledged tax increment revenues. The outstanding principal balance at
June 30, 2010, was $15,075,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest are as follows:
49
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Principal Interest
2010-2011 385,000$ 894,779$
2011-2012 410,000 871,863
2012-2013 430,000 847,650
2013-2014 450,000 822,284
2014-2015 480,000 795,477
2015-2020 2,845,000 3,514,926
2020-2025 2,940,000 2,582,868
2025-2030 2,025,000 1,898,044
2030-2035 3,485,000 1,010,906
2035-2040 1,625,000 49,969
Totals 15,075,000$ 13,288,766$
Bonds, Series A
2007 Tax Allocation
2007 Tax Allocation Refunding Bonds, Series B
The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area
Tax Allocation Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds.
Current Interest Bonds are subject to annual sinking fund installment payments
ranging from $80,000 to $140,000 due beginning August 1, 2008 through
August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum.
Term Bonds are due beginning August 1, 2022 through August 1, 2036, with
installment payments ranging from $150,000 to $305,000, bearing interest rates
ranging from 5.25% to 5.30% per annum. Debt service payments on the bonds are
payable from pledged tax increment revenues. The outstanding principal balance at
June 30, 2010, was $4,625,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest are as follows:
Principal Interest
2010-2011 85,000$ 234,230$
2011-2012 90,000 230,423
2012-2013 95,000 226,305
2013-2014 100,000 221,968
2014-2015 105,000 217,405
2015-2020 595,000 1,008,510
2020-2025 745,000 844,288
2025-2030 970,000 620,734
2030-2035 1,245,000 329,263
2035-2040 595,000 31,933
Totals 4,625,000$ 3,965,059$
Bonds, Series B
2007 Tax Allocation
50
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
2008 Tax Allocation Bonds, Series A
The Azusa Redevelopment Agency issued $6,715,000 Series A Merged Project
Area Tax Allocation Bonds, dated December 18, 2008 to finance redevelopment
projects, satisfy reserve requirements, and pay costs incurred with the bond
issuance. The bonds consist of serial bonds due in annual installments ranging
from $70,000 to $140,000 maturing on August 1, 2009 through August 1, 2018,
and term bonds of $1,850,000 due August 1, 2023 and $1,815,000 due
August 1, 2028 and $2,045,000 due August 1, 2034. Serial bonds have interest
rates ranging from 4.5% through 6.75%. The term bonds carry interest rates of
7.5% and 8.2%. Debt service payments on the bonds are payable from pledged
tax increment revenues. The outstanding principal balance at June 30, 2010, was
$6,645,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest are as follows:
Principal Interest
2010-2011 80,000$ 499,388$
2011-2012 80,000 495,188
2012-2013 85,000 490,544
2013-2014 95,000 485,250
2014-2015 100,000 479,275
2015-2020 645,000 2,279,331
2020-2025 1,980,000 1,877,963
2025-2030 1,990,000 1,057,294
2030-2035 1,590,000 396,000
Totals 6,645,000$ 8,060,233$
Bonds, Series A
2008 Tax Allocation
2008 Housing Tax Allocation Bonds, Series B
The Azusa Redevelopment Agency issued $11,580,000 of Housing Tax
Allocation Bonds, Series B, dated November 25, 2008. Proceeds of the bonds
were to provide funds to finance low and moderate income housing within or of
benefit to the project area, satisfy the reserve requirement for the bonds, and pay
costs incurred in connection with the issuance. The bonds consist of serial
bonds due in annual installments ranging from $125,000 to $355,000 maturing
on August 1, 2009 through August 1, 2020; and term bonds of $1,075,000 due
August 1, 2024 and $8,420,000 due August 1, 2038. Serial bonds have interest
rates ranging from 3.5% through 6.6%. The term bonds carry interest rates of
6.75% and 7.0%. Debt service payments on the bonds are payable from
pledged tax increment revenues. The outstanding principal balance at
June 30, 2010, was $11,225,000.
51
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2010, including interest are as follows:
Principal Interest
2010 - 2011 125,000$ 697,626$
2011 - 2012 125,000 691,533
2012 - 2013 130,000 685,158
2013 - 2014 135,000 678,364
2014 - 2015 145,000 670,833
2015 - 2020 865,000 3,209,859
2020 - 2025 1,280,000 2,883,071
2025 - 2030 3,000,000 2,139,200
2030 - 2035 3,765,000 933,975
2035 - 2040 1,655,000 26,775
Totals 11,225,000$ 12,616,394$
2008 Series B
Housing Tax Allocation Bond
The Azusa Redevelopment Agency has pledged through a portion of the tax
increment revenue that it receives as security for bonds. The Agency has
committed to appropriate each year, from these resources, amounts sufficient to
cover the principal and interest requirements on the debt. The remaining principal
and interest on such debt is reflected in bond issues described above and
amounted to $106,622,421. For the current year, the total tax increment revenue
recognized net of pass-through payments by the Agency was $5,021,545 and
debt service on bond outstanding was $4,406,412.
Obligation Under Developer Agreements
On October 4, 1988, the Redevelopment Agency of the City of Azusa, a component unit
of the City of Azusa, entered into a sales tax allocation note with the Price Company. In
fiscal year 1988-1989, the Price Company advanced to the Agency $4,558,300 for the
purpose of redeveloping the Price Company site located in the West End Project Area.
Interest on the advance accrues at a rate of 9.5% per annum. Sales tax revenues
received from the site have been pledged as security for the repayment of principal and
interest. Annual repayments to Price Company are due on the last business day of
December, March, June and September beginning December 31, 1989, based upon the
following allocation of sales tax revenues:
First, $493,000 to Agency
Next, $490,000 to Price Company
Next, $178,000 to Agency
Next, $178,000 to Price Company
Then, balance divided 50% to Agency and 50% to Price Company
Payments will continue for a period of 25 years through October 31, 2015, or until all
accrued interest and principal are paid in full, whichever occurs first. In the event that the
entire interest and principal has not been repaid as of October 31, 2015, the unpaid
balance will be forgiven. The outstanding principal and matured unpaid interest balance
at June 30, 2010, was $9,366,038.
52
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
On May 15, 1989, the Agency entered into an agreement with the City of Azusa to
transfer all sales tax revenues received by the Agency under the Price Company
developer agreement to the City, except that required for repayment of the note or other
required purposes.
b. Long-Term Debt – Business-Type Activities
The following is a summary of changes in long-term debt for the year ended
June 30, 2010:
Balances at Balances at Due Within
July 1, 2009 Additions Deletions June 30, 2010 One Year
Water Fund:
Compensated absences 378,555$ 87,353$ 57,870$ 408,038$ 62,377$
Certificates of participation,
2003 Series A 16,490,000 - 815,000 15,675,000 840,000
2006 Water Revenue Bonds 54,850,000 - 280,000 54,570,000 295,000
Total Water Fund 71,718,555 87,353 1,152,870 70,653,038 1,197,377
Light Fund:
Compensated absences 525,368 168,025 231,809 461,584 203,665
Certificates of participation,
2003 Series B and C 9,980,000 - 455,000 9,525,000 480,000
Total Light Fund 10,505,368 168,025 686,809 9,986,584 683,665
Sewer/Wastewater Fund:
Compensated absences 90,841 42,005 33,210 99,636 36,425
Certificates of participation, 1994 2,030,000 - 105,000 1,925,000 115,000
Total Sewer/Wastewater Fund 2,120,841 42,005 138,210 2,024,636 151,425
Internal Service Funds:
Compensated absences 292,529 179,678 188,659 283,548 182,867
Total Internal Service 292,529 179,678 188,659 283,548 182,867
Total Business-Type
Funds 84,637,293$ 477,061$ 2,166,548$ 82,947,806 2,215,334$
Unamortized bond premiums 3,311,389
Unamortized bond discounts (91,008)
86,168,187$
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 of the
notes to financial statements. For the business-type activities, the liability will be paid in
future years by the proprietary funds and the Consumer Services internal service funds.
53
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Water Certificates of Participation, 2003 Series A
On December 18, 2003, the Financing Authority for Resource Efficiency of California
(FARECal) issued $20,370,000 of Certificates of Participation, 2003 Series A, with an
average interest rate of 3.91% to current refund $20,130,000 of outstanding Azusa Public
Financing Authority Revenue Bonds, 1993 Series A, and to pay costs associated with the
execution and delivery of Series A Water Certificates.
Debt covenants require that the City maintain a reserve account equal to the maximum
annual debt service on all outstanding certificates. At June 30, 2010, the reserve
requirement of $1,562,157 was fully funded.
The Series A Water Certificates maturing 2004 to 2023, are serial certificates payable in
annual installments of $735,000 to $1,480,000. Interest is payable semi-annually on each
July 1 and January 1 of each year, commencing January 1, 2004, at rates ranging from
2.0% to 5.0% per annum. The outstanding principal balance at June 30, 2010, was
$15,675,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2010, including interest are as follows:
Principal Interest
2010-2011 840,000$ 695,833$
2011-2012 870,000 662,683
2012-2013 910,000 627,083
2013-2014 945,000 589,510
2014-2015 985,000 549,206
2015-2020 5,610,000 2,028,644
2020-2025 5,515,000 559,671
Totals 15,675,000$ 5,712,630$
Participation, 2003 Series A
Water - Certificates of
2006 Water Revenue Bonds
On December 13, 2006, the Azusa Public Financing Authority, a component unit of the
City of Azusa, issued $54,850,000 of 2006 Water Revenue Bonds. The proceeds were
primarily used to finance certain improvements to the municipal water system of the City
of Azusa. The bonds are payable from pledged revenues comprising primarily of
installment payments received by the Authority from the City. Serial bonds mature in
annual installments beginning on July 1, 2009 through July 1, 2017, in amounts ranging
from $200,000 to $1,200,000. Interest ranges from 4.000% to 5.000% and is payable
semi-annually on July 1 and January 1. Term bonds mature in various years ranging
from July 1, 2019 through July 1, 2039, with amounts ranging from $2,595,000 to
$13,230,000 and interest ranges from 3.920% to 4.380%.
54
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding bonds as of June 30, 2010,
including interest are as follows:
Principal Interest
2010-2011 295,000$ 2,675,088$
2011-2012 310,000 2,662,988
2012-2013 320,000 2,650,388
2013-2014 330,000 2,637,388
2014-2015 1,045,000 2,604,663
2015-2020 6,030,000 12,208,988
2020-2025 7,735,000 10,507,438
2025-2030 9,795,000 8,443,719
2030-2035 12,565,000 5,669,375
2035-2040 16,145,000 2,098,625
Totals 54,570,000$ 52,158,660$
Water Revenue Bonds
2006
Electric Certificates of Participation, 2003 Series B
On December 18, 2003, the Financing Authority for Resource Efficiency of California
(FARECal) issued $5,470,000 of Certificates of Participation, 2003 Series B, with an
average interest rate of 3.91% to finance the acquisition, construction and installation of a
new substation (the Kirkwall Substation), including associated equipment and facilities
and certain upgrades to the distribution lines and equipment of the City of Azusa’s
Electric System that are adjacent to the Kirkwall substation. The certificates were also
issued to fund a reserve account for the Series B Electric Certificates and to pay costs
associated with the execution and delivery of the Series B Electric Certificates. There are
no Series A Electric Certificates.
Debt covenants require that the City maintain a reserve account equal to the maximum
annual debt service on all outstanding certificates. At June 30, 2010, the reserve
requirement of $547,000 was fully funded.
The Series B Electric Certificates maturing 2004 to 2023 are serial certificates payable in
annual installments of $565,000 to $915,000. Interest is payable semi-annually on each
July 1 and January 1 of each year, commencing January 1, 2004, at rates ranging from
2.0% to 5.0% per annum. The outstanding principal balance at June 30, 2010, was
$5,470,000.
55
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2010, including interest are as follows:
Principal Interest
2010-2011 -$ 263,438$
2011-2012 - 263,438
2012-2013 - 263,438
2013-2014 - 263,438
2014-2015 - 263,438
2015-2020 2,050,000 1,183,050
2020-2024 3,420,000 346,905
Totals 5,470,000$ 2,847,145$
Participation, 2003 Series B
Electric - Certificates of
Electric Certificates of Participation, 2003 Series C
On December 18, 2003, the Financing Authority for Resource Efficiency of California
(FARECal) issued $6,525,000 of Certificates of Participation, 2003 Series C to finance
the acquisition, construction, and installation of certain facilities to interconnect the
electric system of Southern California Edison Company to the Kirkwall Substation, and
together with the Series B Electric Project, to fund a reserve account for the Series C
Electric Certificates and to pay costs associated with the execution and delivery of the
Series C Electric Certificates. There are no Series A Electric Certificates.
Debt covenants require that the City maintain a reserve account equal to the maximum
annual debt service on all outstanding certificates. At June 30, 2010, the reserve
requirement of $652,500 was fully funded.
The Series C Electric Certificates maturing 2004 to 2023 are serial certificates payable in
annual installments of $565,000 to $915,000. Interest is payable semi-annually on each
July 1 and January 1 of each year, commencing January 1, 2004, at rates ranging from
1.46% to 5.57% per annum. The outstanding principal balance at June 30, 2010, was
$4,055,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2010, including interest, are as follows:
56
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Principal Interest
2010-2011 480,000$ 205,176$
2011-2012 505,000 179,713
2012-2013 530,000 152,959
2013-2014 555,000 124,911
2014-2015 585,000 94,272
2015-2018 1,400,000 89,677
Totals 4,055,000$ 846,708$
Electric - Certificates of
Participation, Series C
1994 Sewer System Certificates of Participation
On March 1, 1994, the Azusa Public Financing Authority, a component unit of the City of
Azusa, issued $3,100,000 of 1994 Sewer System Certificates of Participation. The
proceeds were used to refinance a portion of the 1990 Local Agency Revenue Bonds.
The Certificates of Participation are payable from pledged revenues derived from the
Sewer Enterprise of the City of Azusa sufficient to equal 125% of the maximum annual
debt service of the bonds related to this enterprise. Principal on the Certificates is due in
annual payments beginning on August 1, 1994 through August 1, 2020, in amounts
ranging from $40,000 to $485,000. Interest ranges from 3.500% to 5.625% and is
payable semi-annually on August 1 and February 1.
Debt covenants require that the City maintain a reserve account equal to the maximum
annual debt service on all outstanding certificates. At June 30, 2010, the reserve
requirement of $284,527 was fully funded. The outstanding principal balance at
June 30, 2010, was $1,925,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2010, including interest, are as follows:
Principal Interest
2010-2011 115,000$ 106,313$
2011-2012 115,000 99,988
2012-2013 125,000 93,388
2013-2014 130,000 86,375
2014-2015 135,000 78,919
2015-2020 820,000 263,065
2020-2021 485,000 13,944
Totals 1,925,000$ 741,992$
Participation
Sewer - 1994 Certificates of
57
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 6: Mortgage Revenue Bonds
The City of Azusa and the Azusa Redevelopment Agency have issued various residential
mortgage revenue bonds. The proceeds of these bonds were invested in mortgage loans that
were made to homeowners for the purpose of financing residential property. These bonds are
secured by first trust deeds on those loans and private mortgage insurance. Although the City
and the Redevelopment Agency have arranged this financing program, these bonds are not
payable from any revenues or assets of the City or the Redevelopment Agency. Generally,
the bondholders may look only to the mortgage loans and other assets held by trustees for
security on the indebtedness. Accordingly, since these bonds do not constitute an obligation
of the City or the Redevelopment Agency, they are not reflected in long-term debt.
Year Original Balance at
Issued Amount Issued June 30, 2010 Due Date
Taxable Collateralized
Refunding Bonds -
Series 1992 (Agency) 1992 9,903,000$ 303,000$ December 1, 2012
Single Family Mortgage
Revenue Refunding Bonds
(Agency)1992 10,000,000 6,670,000 October 1, 2012
Note 7: Defined Benefit Pension Plan
Plan Description
The City of Azusa contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee defined benefit pension plan for the
miscellaneous plan and a cost sharing multiple-employer public employee defined benefit
pension plan for the safety plan. PERS provides retirement and disability benefits, annual
cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS
acts as a common investment and administrative agent for participating public entities
within the State of California. Benefit provisions and all other requirements are
established by State statute and City ordinance. Copies of PERS' annual financial report
may be obtained from their executive office: 400 P Street, Sacramento, CA 95814.
Funding Policy
Participants are required to contribute 7% (9% for safety employees) of their annual
covered salary. The City makes the contributions required of City employees on their
behalf and for their account. The City is required to contribute at an actuarially
determined rate; the current rate is 11.714% for non-safety employees and 22.343% for
safety employees, of annual covered payroll. The contribution requirements of plan
members and the City are established and may be amended by PERS.
Annual Pension Cost and Net Pension Obligation (Asset)
The City's annual pension cost and change in net pension obligation (asset) for the fiscal
year ending June 30, 2010, were as follows:
58
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 7: Defined Benefit Pension Plan (Continued)
Annual required contribution 2,274,078$
Interest on net pension obligation (550,186)
Adjustment to annual required contribution 448,735
Annual pension cost 2,172,627
Contribution made 2,274,078
Increase (decrease) in net pension obligation (101,451)
Net pension obligation (asset) beginning of year (7,099,170)
Net pension obligation (asset) end of year (7,200,621)$
The required contribution was determined as part of the June 30, 2009, actuarial
valuation, using the entry age normal actuarial cost method.
A summary of principal assumptions and methods used to determine the annual required
contribution is shown below.
Valuation Date June 30, 2009
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Period 22 Years as of the Valuation Date for Miscellaneous
Employee and 16 Years as of the Valuation Date for
Safety Employees
Asset Valuation Method 15 Year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return 7.75% (net of administrative expenses)
Projected Salary Increases 3.55% to 14.45% depending age, service and type of
employment
Inflation 3.00%
Payroll Growth 3.25%
Individual Salary Growth A merit scale varying by duration of employment
coupled with an assumed annual inflation growth of
3.00% and an annual production growth of 0.25%.
Initial plan unfunded liabilities are amortized over a closed period equal to the average
amortization period at the plan’s date of entry into the CalPERS Risk Pool. Subsequent
plan amendments are amortized as a level percentage of pay over a closed 20-year
period. Gains and losses that occur in the operation of the risk pool are amortized over a
rolling 30-year period. If the plan’s accrued liability exceeds the actuarial value of plan
assets, then the amortization payment on the total unfunded liability may not be lower
than the payment calculated over a 30-year amortization period.
59
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 7: Defined Benefit Pension Plan (Continued)
Three-Year Trend Information for PERS (Miscellaneous Plan)
(Amounts in Thousands)
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC)APC Contributed Obligation
6/30/2008 2,416$ 100%-$
6/30/2009 2,617 100%-
6/30/2010 2,655 100%-
Three-Year Trend Information for PERS (Safety Plan)
(Amounts in Thousands)
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC)APC Contributed Obligation
6/30/2008 3,059$ 100%-$
6/30/2009 3,329 313%(7,099)
6/30/2010 2,173 105%(7,201)
For fiscal year 2009-2010, the City of Azusa participated in risk pooling for its safety
employees. Risk pooling consists of combining assets and liabilities across employers to
produce large groups where the impact of a catastrophic demographic event is shared
among all employers of the same risk pool. Participation in risk pools is mandatory for all
plans with less than 100 active members. Mandated participation in risk pools was
initially based on the active membership of each rate plan as of June 30, 2003. The
implementation of risk pools was done in a way that minimizes the impact on employer
contribution rates. The first year in risk pools, the employer contributions are almost
identical to what the rates would have been outside the pools. Future rates will be based
on the experience of each pool. Pooling will reduce the volatility of future employer rates.
Mandated participation will occur on an annual basis. If on any valuation date, starting
with the June 30, 2003, valuation, a rate plan has less than 100 active members, it will be
mandated in one of the risk pools effective on that valuation date.
In December 2008, the City issued pension funding bonds to fund the City’s actuarial
accrued liability with respect to its safety plan. Although the City participates in a cost
sharing plan, the required contribution includes a separate amortization for the difference
between the funded status of the pool and the funded status of the City’s plan at the time of
joining the pool. Through the funding of this actuarial accrued liability the City reports a
net pension asset in its financial statements.
60
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 7: Defined Benefit Pension Plan (Continued)
Actuarial
Accrued UAAL as
Actuarial Actuarial Liability Unfunded a % of
Valuation Value of (AAL) Entry AAL Funded Covered Covered
Date Assets Age (UAAL) Ratio Payroll Payroll
6/30/2007 68,944$ 75,027$ 6,083$ 91.9% 13,474$ 45.15%
6/30/2008 73,953 80,194 6,241 92.2% 14,621 42.69%
6/30/2009 78,137 87,949 9,813 88.8% 15,596 62.92%
Schedule of Funding Progress for PERS
PERS Miscellaneous Plan
(Amounts in Thousands)
Note 8: Public Agency Retirement System (PARS)
Defined Contribution Pension Plan
The City of Azusa contributes to the Public Agency Retirement System (PARS), a defined
contribution pension plan provided and administered by the Public Agency Retirement
System Alternate Retirement System Plan. Employees of the City not otherwise eligible
to participate in PERS or eligible to opt not to participate in PERS, are eligible for
participation in this plan. In a defined contribution plan, benefits depend solely on
amounts contributed to the plan plus investment earnings. Federal legislation requires
contribution of at least 7.5% to a retirement plan. The plan is established by City
ordinance. For the year ended June 30, 2010, the covered payroll for employees in the
plan was $579,280. Total payroll for the City was $29,697,387. Under an adoption
agreement dated January 1, 1992, both the employer and the employee are required to
contribute 3.75% of each participant's compensation. For the year ended June 30, 2010,
the employer and the employees each contributed an amount equal to $21,723. Under
this plan, normal retirement age is 60 years of age. Plan assets are primarily invested in
money market funds.
Retirement Enhancement Plan
The City of Azusa also contributes to the PARS Retirement Enhancement Plan. The plan
provides pension benefits to 116 eligible covered positions in International Brotherhood of
Electrical Workers (IBEW), Service Employees International Union Local 721 (SEIU),
Azusa Middle Management Association (AMMA), and Executive Management. The plan
is administered by Phase II Systems, PARS Trust Administration. Under adopted
agreements approved in July and August 2007, both the employer and the employee are
required to contribute the following contributions for each participant's compensation:
Covered Employer Employee
Positions Contribution Contribution
IBEW 2.26%2.00%
SEIU 0.07%4.00%
AMMA 6.41%2.50%
Executive Management 4.00%7.00%
61
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 9: Post-Employment Benefits
Plan Description
The City provides other postemployment benefits (OPEB) through a single-employer
defined benefit healthcare plan by contributing approximately one-half of all premiums
charged under the health benefit plan for all eligible employees and qualified family
members. These benefits are provided per contract between the City and the employee
associations. A separate financial report is not available for the plan.
Funding Policy
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council, and/or employee associations. Currently,
contributions are not required from plan members. A contribution of $354,782 was made
during the 2009-2010 fiscal year and was not included in the July 1, 2006, actuarial
study. The purpose of the contribution was to pay current year premiums for retirees.
As a result, the City calculated and recorded a Net OPEB Liability, representing the
difference between the Annual Required Contribution (ARC) and actual contributions, as
presented below:
Annual required contribution (ARC)2,200,000$
Interest on Net OPEB Obligation 86,000
Adjustment to ARC (93,000)
Annual OPEB Cost 2,193,000
Contributions made (354,782)
(Decrease) increase in Net OPEB obligation 1,838,218
Net OPEB obligation (asset) June 30, 2009 2,343,605
Net OPEB obligation (asset) June 30, 2010 4,181,823$
The contribution rate of 17.7% is based on the ARC of $2,200,000, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis is projected to cover the
annual normal cost and the amortization of unfunded actuarial liabilities (or funding
excess) over a thirty year period.
Annual OPEB Costs and Net OPEB Obligation (Asset)
For the fiscal year 2009-2010, the City’s annual OPEB cost (expense) of $2,193,000 was
equal to the ARC. Since last fiscal year was the transition year, information on the
annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB
Obligation is only available for two most current fiscal years, as presented below:
Fiscal Year
End
Annual
OPEB
Cost
Actual
Contribution (Net
of Adjustments)
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Obligation
(Asset)
6/30/2009 $ 2,696,000 $ 352,395 13% $ 2,343,605
6/30/2010 2,193,000 354,782 16% 1,838,218
62
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 9: Post-Employment Benefits (Continued)
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and
the annual required contributions of the City are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the
future. The schedule of funding progress below presents multiyear trend information
about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits. Only two year’s are presented as
these are the first valuations of the plan.
Type of
Valuation
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Unfunded
Actuarial
Accrued Liability
Funded
Ratio Covered Payroll
UAAL as
percent of
Covered
Payroll
Interest
Rate
Actual 7/1/2006 -$ 24,432,000$ 0.0% 15,202,000$ 161% 3.50%
Actual 6/30/2009 - 25,445,000 0.0% 19,966,000 127% 4.00%
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in the actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the July 1, 2006, actuarial valuation, the projected unit credit method was used. The
actuarial assumptions include a 3.50% investment rate of return, which is a blended rate
of the expected long-term investment return on plan assets and on the employer’s own
investments calculated based on the funded level of the plan at the valuation date, and
annual healthcare cost trend rate of 11% beginning July 1, 2006, and reduced by
decrements to an ultimate rate of 5% after six years. The actuarial value of assets is set
equal to the reported market value of assets. The UAAL is being amortized as a level
percentage of payroll on an open basis. The remaining amortization period at
June 30, 2010, was twenty-eight years. The number of active participants is 352.
63
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 10: Insurance
The City is self-insured for workers' compensation and general liability claims arising in the
ordinary course of City operations. The City is a member of the Independent Cities Risk
Management Authority (ICRMA) for general liability insurance coverage in excess of
$500,000 up to a maximum of $2,000,000 per claim and for coverage of workers'
compensation claims in excess of $350,000 up to a maximum of $5,000,000 per claim. In
addition the City also purchased excess liability insurance of $18,000,000 in excess of the
$2,000,000 and excess worker's compensation insurance of $95,000,000 in excess of
$5,000,000.
For the past three years, no settlements or claims payments have exceeded the amount of
the applicable insurance coverage. For the past two fiscal years, the changes in the City's
liability for claims payable are summarized as follows:
Claims Incurred
Beginning and Changes Less Claim Ending
Balance in Estimates Payments Balance
2008-2009 2,600,445$ 1,419,363$ (951,639)$ 3,068,169$
2009-2010 3,068,169 550,265 (1,315,700) 2,302,734
Additional losses may result from matters pending before the City. In the opinion of legal
counsel and management, the resolution of these matters is not expected to have a material
adverse effect on the financial condition of the City.
Note 11: Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2010, was as follows:
Due To/From Other Funds
Capital Projects Debt Service Nonmajor
General Redevelopment Redevelopment Governmental Internal
Funds Fund Agency Agency Funds Light Service Total
Due to Other Funds:
General -$ -$ 281,522$ 1,185,950$ -$ -$ 1,467,472$
Capital Project -
Redevelopment Agency 1,495,776 - - - 115,594 38,199 1,649,569
Debt Service -
Redevelopment Agency 4,107,157 - - - - - 4,107,157
Nonmajor Governmental Funds 337,241 433,800 771,041
Water - 450,000 - - - - 450,000
Nonmajor enterprise funds - - - 22,780 - - 22,780
Nonmajor enterprise funds - - - - - - -
Internal service funds - - - 37,954 - - 37,954
Total 5,940,174$ 450,000$ 281,522$ 1,680,484$ 115,594$ 38,199$ 8,505,973$
Due From other Funds
The due from other funds amount in the General Fund consisted of routine inter-fund
transactions not cleared prior to year end and short-term loans.
The due from other funds amount in the Redevelopment Agency –Capital Projects Fund
with the Water Fund consisted of a short-term loan.
The due from other funds amount in the Redevelopment Agency – Debt Service Fund
with the General Fund relates to amounts the City owes the RDA for sales tax triple flip.
64
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 11: Interfund Receivables, Payables and Transfers (Continued)
The due from other funds in the Nonmajor Governmental funds was to cover a short-term
cash deficit.
The due from other funds in the Light Fund consisted of a short-term loan to fund capital
projects to be repaid with the 2007 Tax Allocation Bonds.
The due from other funds in the internal service funds were short-term loans.
Advances To/From Other Funds
Nonmajor
General Governmental Water Light Internal Service
Funds Fund Funds Fund Fund Funds Total
Advances From Other Funds:
General -$ -$ -$ 306,000$ -$ 306,000$
Debt Service - Redevelopment
Agency - 1,483,635 189,458 10,367,072 18,468,143 30,508,308
Capital Projects - Redevelopment
Agency 5,401,018 3,477,923 450,000 5,440,510 - 14,769,451
Nonmajor Funds - - - 1,486,579 - 1,486,579
Total 5,401,018$ 4,961,558$ 639,458$ 17,600,161$ 18,468,143$ 47,070,338$
Advances To Other Funds:
The Light Fund advanced $306,000 to the General Fund and $5,440,510 to the Capital
Projects Fund and $1,486,579 to Low and Moderate Income Housing Fund for various
project expenditures. The Light Fund also advanced $10,367,072 to the Redevelopment
Agency Debt Service Fund to fund multiple development projects, such as Krems Loan,
Auto Dealer Loan, Ranch Center Loan and Pic N Sav Loan. The General fund also
advanced $5,401,018 to the Redevelopment Agency Capital Projects Fund.
The Water Fund advanced $639,458 to the Redevelopment Agency to fund various
project expenditures.
The Intra-governmental Loan Fund advanced $18,468,143 to the Redevelopment Agency
Debt Service Fund for multiple development projects, such as Price Club, Ranch Center
Loan and the Ranch Center Sales Tax Loan.
Nonmajor governmental funds $4,961,558 to Redevelopment Agency Capital Projects
and Debt Service Funds for purposes of the Merged Redevelopment Project Area.
65
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 11: Interfund Receivables, Payables and Transfers (Continued)
Interfund Transfers
Capital Projects Debt Service Nonmajor
General Redevelopment Redevelopment Governmental Internal
Funds Fund Agency Agency Funds Service Funds Total
Transfer Out:
General -$ -$ -$ 3,900,763$ -$ 3,900,763$
Capital Projects -
Redevelopment Agency 107,695 - 315,907 - 38,200 461,802
Debt Service -
Redevelopment Agency - 1,175,289 - 1,596,331 - 2,771,620
Nonmajor Governmental
Funds - 290,614 1,475,607 462,189 - 2,228,410
Water Fund - - - 468,441 - 468,441
Light Fund - - - 8,100 - 8,100
Nonmajor Proprietary
Funds 730,000 - - - - 730,000
Internal Service Funds 172,285 - - 7,554 - 179,839
Total 1,009,980$ 1,465,903$ 1,791,514$ 6,443,378$ 38,200$ 10,748,975$
Transfer In
The total transfers from the General Fund were for various operating, capital, and debt
service transactions made throughout the year.
Transfers to the Redevelopment Agency – Capital Projects fund were to fund capital
projects and to cover administrative costs incurred by other RDA funds.
Transfers to the Redevelopment Agency – Debt Service Fund were to cover various
expenditures within the Redevelopment Agency, such as, debt service payments, pay
City advances and project area deficits.
Transfers from Redevelopment Agency – Debt Service Fund of $1,475,607 to non-major
funds related to 20% set-aside to low and moderate income housing fund.
Transfers to General Fund from Redevelopment agency, non-major proprietary funds,
and internal service funds were related to interest income, franchise fees and operating
transactions.
66
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 12: Fund Equity and Net Assets Restatements
Beginning fund equity and net assets have been restated as follows:
Major governmental funds:
General Fund
To record prior years interest income on Redevelopment Agency Loan 467,434$
Redevelopment Agency - Capital Projects Fund
To record prior years interest expense on General Fund loan (542,791)
Redevelopment Agency - Debt Service Fund
To record advances within the Agency not previously recorded (1,416,135)
To record prior years interest expense on a Light & Water loan (18,302)
Total Redevelopment Agency - Debt Service Fund (1,434,437)
Non-major governmental funds:
State Gasoline Tax Fund
To record prior years budgeted transfers not recorded (387,771)
Grants and Seizure Fund
To record prior years actual activities (299,642)
Monrovia Nursery Fund
To record prior years budgeted transfers not recorded 75,360
Utility Mitigation Fund
To record prior years budgeted transfers not recorded 387,771
AB939 Fee
To correctly record activity in appropriate fund.299,644
Low/Mod Income Housing
To record advances within the Agency which were previously not recorded 1,416,135
Total Governmental Funds (18,297)$
Proprietary Funds:
Enterprise Funds:
Water Fund
To record various prior period account corrections (341,379)$
Light Fund
To correct prior period depreciation expense (567)
Sewer/Wastewater Fund
To record various prior period account corrections (20,949)
Internal Service Funds:
Self Insurance Fund
To record prior years uncollectible 2,837
Total Proprietary Funds (360,058)$
Beginning net assets has been restated as follows:
Governmental Activities:
Governmental fund restatements detailed above (18,297)$
Internal Service fund restatements detailed above 2,837
Total Governmental Activities (15,460)
Business-Type Activities:
Enterprise funds restatements detailed above (362,895)
Total Net Asset Restatements (378,355)$
67
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 13: Grant and Seizure Fund
The Grant and Seizure special revenue fund include the following items in its fund balance:
Assets Seizure Federal - Department of Justice 228,244$
Asset Seizure County 19,759
Asset Seizure Drug and Gang 4,389
Office of Traffic Safety 2,762
Asset Seizure Federal - Department of Treasury 84
Inmate Welfare Fund 10,961
Senior Restricted Donations 98
Public Library Fund 279,863
Library Restricted Donations 62,358
Gates Foundation 497
Book Clubs 2,489
Summer Reading 7,940
Special Programs 451
California Literacy Grant 26,912
General Plan Surcharge 220,075
AB29X Meters 86,607
Oil Block Grant 1,644
Beverage Container Recycling 38,782
Technology Grant 143,058
Rehabilitation of Zacatecas Park 516
Grants and Seizures (8,940)
Jack Williams Memorial 600
Police - Grants and Seizure 17
Alcohol Beverage Control Grant (3,423)
2008 Homeland Security Grant (21,612)
Total 1,104,131$
Note 14: Segments of Enterprise Activities
The City issued Sewer System Certificates of Participation to refinance a portion of the 1990
Local Agency Revenue Bonds. The sewer department is accounted for in the Other
Enterprise Funds as the Sewer/Wastewater Fund. Summary information for the
Sewer/Wastewater Fund for the year ended June 30, 2010, is as follows:
68
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 14: Segments of Enterprise Activities (Continued)
Assets:
Current assets 2,645,287$
Restricted assets 293,120
Capital assets 9,417,354
Noncurrent assets 87,753
Total assets 12,443,514
Liabilities:
Current liabilities 295,091
Noncurrent liabilities 1,816,125
Total liabilities 2,111,216
Net assets:
Invested in capital assets, net of related debt 7,549,440
Restricted 293,120
Unrestricted 2,489,738
Total net assets 10,332,298$
Condensed Statement of Net Assets
Sewer charges 1,562,286$
Depreciation expense (317,030)
Other operating expenses (1,513,518)
Operating income (268,262)
Nonoperating revenues (expenses):
Investment earnings 80,195
Interest expense (123,892)
Special franchise fees (31,702)
Transfers out (140,000)
Change in net assets (483,661)
Beginning net assets as restated 10,815,959
Ending net assets 10,332,298$
Condensed Statement of Revenues, Expenses
and Changes in Net Assets
Net cash provided (used) by:
Operating activities 61,335$
Noncapital financing activities (140,000)
Capital and related financing activities (1,038,438)
Investing activities 88,285
Net increase (decrease)(1,028,818)
Beginning cash and cash equivalents 3,776,118
Ending cash and cash equivalents 2,747,300$
Condensed Statement of Cash Flows
69
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 15: Proposition 218
Proposition 218, which was approved by the voters in November 1996, regulates the City's
ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or
extended taxes, assessments, and fees that are determined to be subject to the provisions of
Proposition 218 require voter approval before they can be implemented. Additionally,
Proposition 218 provides that these taxes, assessments, and fees are subject to the voter
initiative process and may be rescinded in the future by the voters. Therefore, the City's
ability to finance the services for which the taxes, assessments, and fees were imposed may
be significantly impaired. At this time, it is uncertain how Proposition 218 will affect the City's
ability to maintain or increase the revenue it receives from taxes, assessments and fees.
Note 16: Summary Financial Data for Joint Ventures
Southern California Public Power Authority
The City of Azusa is a member of the Southern California Public Power Authority
(SCPPA), a public entity organized under the laws of the State of California. The SCPPA
was formed by a Joint Powers Agreement dated as of November 1, 1980, pursuant to the
Joint Exercise of Powers Act of the State of California. The SCPPA’s participant
membership consists of ten Southern California cities each operating an electric and one
public district of the State of California. The SCPPA was formed for the purpose of
planning, financing, developing, acquiring, constructing, operating and maintaining
projects for the generation and transmission of electric energy for sale to its participants.
The Joint Powers Agreement has a term of 50 years. Complete financial statements may
be obtained from 200 S. Los Robles Avenue, Suite 155, Pasadena, California 91101-
9738.
As of June 30, 2010, the City’s ownership of significant projects of SCPPA includes the
following: 1% of SCPPA’s $696,216,000 investment (at cost) in the Palo Verde Nuclear
Generating Station (with related SCPPA indebtedness of $89,470,000), 1% of SCPPA’s
$53,611,000 investment (at cost) in the Mead – Phoenix Project (with related SCPPA
indebtedness of $60,640,000), 2.2% of SCPPA’s $173,271,000 investment (at cost) in
the Mead - Adelanto Project (with related SCPPA indebtedness of $190,440,000) and
14.7% of SCPPA’s $246,585,000 investment (at cost) in the San Juan Generating Station
(with related indebtedness of $136,200,000).
Note 17: Rate Stabilization Fund
The City of Azusa has provided for a rate stabilization fund in the amount of $10,279,372
(presented in the accompanying balance sheet as cash held for rate stabilization) to cover
the difference between the City's cost to provide electricity to its customers (including power
charges for power purchased from other utilities in which the City has a joint venture interest)
and the local market price for electricity as established by a regional power pool approved by
the Federal Energy Regulatory Commission.
70
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 18: Commitments and Contingencies
The City of Azusa has been named as a defendant in numerous lawsuits and claims arising
in the course of operations. In the aggregate, these claims seek monetary damages in
significant amounts. To the extent the outcome of such litigation has been determined to
result in probable financial loss to the City, such loss has been accrued in the accompanying
combined financial statements.
Note 19: Transactions with the State of California
a. Proposition 1A Borrowing by the State of California
Under the provisions of Proposition 1A and as part of the 2009-10 budget package
passed by the California state legislature on July 28, 2009, the State of California
borrowed 8% of the amount of property tax revenue, including those property taxes
associated with the in-lieu motor vehicle license fee, the triple flip in lieu sales tax, and
supplemental property tax, apportioned to cities, counties and special districts (excluding
redevelopment agencies). The state is required to repay this borrowing plus interest by
June 30, 2013. After repayment of this initial borrowing, the California legislature may
consider only one additional borrowing within a ten-year period. The amount of this
borrowing pertaining to the City of Azusa was $727,997.
Authorized with the 2009-10 State budget package, the Proposition 1A Securitization
Program was instituted by the California Statewide Communities Development Authority
(“California Communities”), a joint powers authority sponsored by the Cal ifornia State
Association of Counties and the League of California Cities, to enable local governments
to sell their Proposition 1A receivables to California Communities. Under the
Securitization Program, California Communities simultaneously purchased the
Proposition 1A receivables and issued bonds (“Prop 1A Bonds”) to provide local agencies
with cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The
purchase price paid to the local agencies equaled 100% of the amount of the property tax
reduction. All transaction costs of issuance and interest were paid by the State of
California. Participating local agencies have no obligation on the bonds and no credit
exposure to the State. The City participated in the securitization program and accordingly
property taxes have been recorded in the same manner as if the State had not exercised
its rights under Proposition 1A. The receivable sale proceeds were equal to the book
value and, as a result, no gain or loss was recorded.
b. Delay of State Gas Tax Payments
In March 2010, the State Legislature passed legislation delaying a variety of State
payments to local agencies in response to anticipated State cash flow problems in fiscal
year 2010-2011. AB5 8x contains provisions to delay a portion (approximately 60%) of
the payments of State Gas Tax monies for the first nine months of 2010-2011 (July 2010
through March 2011) to be paid no later than April 28, 2011.
71
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 19: Transactions with the State of California (Continued)
c. SERAF Shift for fiscal year 2009-2010 and 2010-2011
On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal
years 2009-2010 and 2010-2011 to be deposited into the County “Supplemental”
Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed
to meet the State’s Prop 98 obligations to schools. The California Redevelopment
Association (CRA) and its member agencies filed a legal action in an attempt to stop
these amounts from having to be paid; however, in May 2010 the Sacramento Superior
Court upheld the legislation. This decision is in the process of being appealed by CRA
and its member agencies.
The payment of the SERAF was due on May 10, 2010 for fiscal year 2009-2010 and it
was made in the amount of $2,491,858. The legislation allowed this payment to be made
from any available monies present in any project area(s). Subsequent legislation was
passed which even allowed the funding for this payment to be borrowed from the Low
and Moderate Income Housing Fund with appropriate findings from its legislative body.
Any amounts borrowed from Low and Moderate Income Housing (including any
suspended set-aside amounts) are to be repaid by June 30, 2015. If those amounts are
not repaid, by that date, then the set-aside percentage to Low and Moderate Income
Housing will increase from 20% to 25% for the remainder of the life of the Agency.
To accomplish the payment, the Agency utilized $2,491,858 from its available resources,
(after adopting appropriate findings of necessity). In the accompanying financial
statements, the amount paid to the County has been reported as a use of current year
resources.
It is estimated that the Agency’s share of t he SERAF shift for fiscal year 2010-2011 will
amount to approximately $512,545 and this amount will be payable in May 2011 if the
appeal is not successful.
72
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues and the related expenditures which are
legally required to be accounted for in a separate fund.
State Gasoline Tax Fund – To account for the revenues and expenditures of the City’s proportionate
share of gas tax moneys collected by the State of California, which are used for street construction and
maintenance and park maintenance.
Proposition A Fund – To account for financial transactions in accordance with Proposition A Local
Transit Assistance Act regulations.
Proposition C Fund – To account for financial transactions in accordance with Proposition C regulations.
Community Development Block Grant Fund – To account for the revenues and expenditures of
approved Federal Housing and Community Development Act projects.
Senior Nutrition Fund – To account for the operations of the Senior Nutrition program administered by
the Recreation and Family Services Department.
Public Benefit Program Fund – To account for the revenues and expenditures of the City’s Public
Benefit Program in accordance with the State of California AB 1890.
Air Quality Improvement Fund – To account for moneys received from AQMD, which are used to
improve air quality.
Grants and Seizures Fund – To account for money received from private grants and police seizures.
Supplemental Law Enforcement Fund – To account for grant moneys received for local law
enforcement activities.
Fire Safety Fund – To account for moneys received and expended for fire services.
Monrovia Nursery Fund – To account for moneys collected from developers for the purpose of making
traffic and structural improvements.
Employee Benefits Fund – To account for payments made for retired employee health benefits.
Utility Mitigation – To account for monies received from the transfer from Light and Water as authorized
by City Council
Highway 39 – Segregated to account for monies specifically related to “Highway 39”.
LACMTA – To account for received from the Los Angeles County Metropolitan Transportation Authority.
Measure R – To account for monies received related to Measure R
AB939 Fee – To account for monies related to AB939 Fee.
Low and Moderate Income Housing Fund – To account for monies received and expended to assist
low and moderate income households.
73
Nonmajor Governmental Funds (Continued)
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition or construction of major capital items not
financed by proprietary funds and trust funds.
Park In-Lieu Fund – To account for moneys collected from developers for the purpose of acquiring or
improving park or recreational land or facilities.
Capital Projects Fund – To account for all capital projects not being accounted for in other capital
projects funds.
Public Works Endowment Fund – To account for Public Works improvement projects for facility
upgrades.
DEBT SERVICE FUNDS
Debt service funds are used to account for tax increment revenues, bond proceeds required to be set
aside for future debt service, and related interest income. The funds are used to repay principal and
interest on indebtedness of the City, Redevelopment Agency and Public Financing Authority.
Public Financing Authority Fund – To account for payments of principal and interest for the 2003
Refunding Certificates of Participation, which were used to current refund the outstanding 1994
Certificates of Participation.
74
THIS PAGE INTENTIONALLY LEFT BLANK
75
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments 1,906,279$ 1,555,133$ 1,240,747$ -$
Receivables:
Accounts - 30,573 1,249 175,527
Taxes 197,827 - - -
Notes and loans 4,114 208 208 349,718
Accrued interest 783 971 801 -
Prepaid costs - - - -
Deposits - - 465 -
Due from other funds - - - -
Advances to other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments - - - -
Cash and investments with fiscal agents - - - -
Total Assets 2,109,003$ 1,586,885$ 1,243,470$ 525,245$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 54,236$ 16,253$ 24,972$ 39,694$
Accrued liabilities 33,444 23,173 9,827 6,371
Deferred revenues - - - 349,718
Unearned revenues - - - -
Due to other governments - - - -
Due to other funds - - - 127,054
Advances from other funds - - - -
Total Liabilities 87,680 39,426 34,799 522,837
Fund Balances:
Reserved:
Reserved for prepaid costs - - - -
Reserved for land held for resale - - - -
Reserved for notes and loans 4,114 208 208 -
Reserved for advances to other funds - - - -
Reserved for deposits - - 465 -
Unreserved:
Designated for capital projects 2,017,209 - 1,207,998 -
Undesignated - 1,547,251 - 2,408
Total Fund Balances 2,021,323 1,547,459 1,208,671 2,408
Total Liabilities and Fund Balances 2,109,003$ 1,586,885$ 1,243,470$ 525,245$
Special Revenue Funds
State Gasoline
Tax Proposition A Proposition C
Community
Development
Block Grant
76
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to other funds
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
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 advances to other funds
Reserved for deposits
Unreserved:
Designated for capital projects
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
(Continued)
3,209$ 1,961,601$ 113,840$ 1,091,770$
13,325 42,766 14,879 179,523
- - - -
929 - - -
- 1,276 85 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
17,463$ 2,005,643$ 128,804$ 1,271,293$
10,129$ 132,336$ 2,605$ 35,316$
7,334 5,396 5 3,437
- - - 25,035
- - - 103,374
- - - -
- - - -
- - - -
17,463 137,732 2,610 167,162
- - - -
- - - -
929 - - -
- - - -
- - - -
- - - -
(929) 1,867,911 126,194 1,104,131
- 1,867,911 126,194 1,104,131
17,463$ 2,005,643$ 128,804$ 1,271,293$
Special Revenue Funds
Senior
Nutrition
Public
Benefit
Program
Air Quality
Improvement
Grants and
Seizure
77
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to other funds
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
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 advances to other funds
Reserved for deposits
Unreserved:
Designated for capital projects
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
72,415$ -$ 1,112,400$ -$
7,548 - - -
- - 117,385 -
- - 160 -
- - 1,734 -
- 306,746 - -
- - - -
- - 1,680,484 -
- - 3,477,923 -
- - - -
- - - -
- - - -
79,963$ 306,746$ 6,390,086$ -$
17$ -$ 50,325$ -$
- - 4,639 -
- - - -
- - - -
- - - -
- 306,746 - -
- - - -
17 306,746 54,964 -
- 306,746 - -
- - - -
- - 160 -
- - 3,477,923 -
- - - -
- - - -
79,946 (306,746) 2,857,039 -
79,946 - 6,335,122 -
79,963$ 306,746$ 6,390,086$ -$
Special Revenue Funds
Supplemental
Law
Enforcement Fire Safety
Monrovia
Nursery
Employee
Benefits
78
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to other funds
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
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 advances to other funds
Reserved for deposits
Unreserved:
Designated for capital projects
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
(Continued)
712,979$ 1,276,128$ 883,625$ 311,423$
- - - -
- - - -
- - - -
- 776 537 146
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
712,979$ 1,276,904$ 884,162$ 311,569$
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
712,979 1,276,904 884,162 311,569
712,979 1,276,904 884,162 311,569
712,979$ 1,276,904$ 884,162$ 311,569$
Special Revenue Funds
Utility
Mitigation Highway 39 LACMTA Measure R
79
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to other funds
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
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 advances to other funds
Reserved for deposits
Unreserved:
Designated for capital projects
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
339,230$ 160,420$ 3,980$ 653,475$
7,588 - - -
- - - -
- 1,146,450 - -
- 1,226 2 -
- - - -
- - - -
- - - -
- 1,483,635 - -
- 11,582,075 - -
- - - 30,855
- - - -
346,818$ 14,373,806$ 3,982$ 684,330$
175$ 73,842$ 3,172$ -$
3,282 - - -
- 1,146,450 - -
- - - -
- 23,072 - -
- 337,241 - -
- 736,579 - 750,000
3,457 2,317,184 3,172 750,000
- - - -
- 11,582,075 - -
- - - -
- 1,483,635 - -
- - - -
- - - -
343,361 (1,009,088) 810 (65,670)
343,361 12,056,622 810 (65,670)
346,818$ 14,373,806$ 3,982$ 684,330$
Special Revenue Funds Capital Projects Funds
AB939 Fee
Low/Mod
Income
Housing Park in-lieu
Capital
Projects
80
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Advances to other funds
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
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 advances to other funds
Reserved for deposits
Unreserved:
Designated for capital projects
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Capital
Projects Fund
Debt
Service Fund
Total
Governmental
Funds
1,158,098$ -$ 14,556,752$
- - 472,978
- - 315,212
- - 1,501,787
716 8 9,061
- - 306,746
- - 465
- - 1,680,484
- - 4,961,558
- - 11,582,075
- - 30,855
- 482,540 482,540
1,158,814$ 482,548$ 35,900,513$
48,675$ -$ 491,747$
- - 96,908
- - 1,521,203
- - 103,374
- - 23,072
- - 771,041
- - 1,486,579
48,675 - 4,493,924
- - 306,746
- - 11,582,075
- - 5,619
- - 4,961,558
- - 465
- - 3,225,207
1,110,139 482,548 11,324,919
1,110,139 482,548 31,406,589
1,158,814$ 482,548$ 35,900,513$
Public Works
Endowment
Public
Financing
Authority
81
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes -$ 620,141$ 514,435$ -$
Intergovernmental 1,232,680 95,098 - 719,856
Charges for services - 20,351 76,332 -
Use of money and property 30,094 34,233 29,139 -
Contributions - - - -
Miscellaneous 148 - 103,042 3,992
Total Revenues 1,262,922 769,823 722,948 723,848
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - 442,915
Parks and recreation 58,964 - - -
Public works 1,250,973 872,632 618,238 -
Capital outlay 50,143 - 548,085 278,525
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 1,360,080 872,632 1,166,323 721,440
Excess (Deficiency) of Revenues
Over (Under) Expenditures (97,158) (102,809) (443,375) 2,408
Other Financing Sources (Uses):
Transfers in 409,423 - - -
Transfers out (32,098) - (39,897) -
Total Other Financing Sources
(Uses)377,325 - (39,897) -
Net Change in Fund Balances 280,167 (102,809) (483,272) 2,408
Fund Balances, Beginning of Year 2,128,927 1,650,268 1,691,943 -
Restatements (387,771) - - -
Fund Balances, Beginning of Year, as Restated 1,741,156 1,650,268 1,691,943 -
Fund Balances, End of Year 2,021,323$ 1,547,459$ 1,208,671$ 2,408$
Proposition C
Community
Development
Block Grant
Special Revenue Funds
State Gasoline
Tax Proposition A
82
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(Continued)
-$ -$ -$ -$
117,447 - 55,404 1,257,147
- 650,719 20,403 18,698
- 46,224 3,008 14,737
83,669 - - 8,450
- 178 - 67,014
201,116 697,121 78,815 1,366,046
- 115,922 - 60
- - - 167,199
- 637,125 - -
315,171 - - 47,669
- - 50,808 14,886
- 246,751 55,842 1,073,175
- - - -
- - - -
315,171 999,798 106,650 1,302,989
(114,055) (302,677) (27,835) 63,057
114,055 - 1,638 57,770
- - - (2,424)
114,055 - 1,638 55,346
- (302,677) (26,197) 118,403
- 2,170,588 152,391 1,285,370
- - - (299,642)
- 2,170,588 152,391 985,728
-$ 1,867,911$ 126,194$ 1,104,131$
Grants and
Seizure
Senior
Nutrition
Public Benefit
Program
Air Quality
Improvement
Special Revenue Funds
83
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ -$ -$ -$
122,373 - - -
- 111,118 606,572 -
1,046 - 271,879 -
- - - -
- - 78 -
123,419 111,118 878,529 -
- - - 23,422
67,684 3,518,079 - -
- - - -
- - - -
- - 160,417 -
- - 179,448 -
- - - -
- - - -
67,684 3,518,079 339,865 23,422
55,735 (3,406,961) 538,664 (23,422)
- 3,406,961 - 23,422
- - - -
- 3,406,961 - 23,422
55,735 - 538,664 -
24,211 - 5,721,098 -
- - 75,360 -
24,211 - 5,796,458 -
79,946$ -$ 6,335,122$ -$
Supplemental
Law
Enforcement Fire Safety
Monrovia
Nursery
Employee
Benefits
Special Revenue Funds
84
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(Continued)
-$ -$ -$ 309,524$
- - - -
- - - -
1,686 26,954 19,179 2,045
- - - -
- - - -
1,686 26,954 19,179 311,569
- - - -
- - - -
- - - -
- - - -
- - - -
- - 68,801 -
- - - -
- - - -
- - 68,801 -
1,686 26,954 (49,622) 311,569
468,441 - - -
(387,770) - - -
80,671 - - -
82,357 26,954 (49,622) 311,569
242,851 1,249,950 933,784 -
387,771 - - -
630,622 1,249,950 933,784 -
712,979$ 1,276,904$ 884,162$ 311,569$
Utility
Mitigation Highway 39 LACMTA Measure R
Special Revenue Funds
85
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ -$ -$ -$
- - 1,800 -
203,742 - - -
- 76,979 88 -
- - - -
- 1,337 - -
203,742 78,316 1,888 -
- 92,466 - -
- - - -
- - - -
- - 988 -
160,025 - - -
- 423,513 5,972 -
- - - -
- 50,172 - -
160,025 566,151 6,960 -
43,717 (487,835) (5,072) -
- 1,596,331 - -
- (1,766,221) - -
- (169,890) - -
43,717 (657,725) (5,072) -
- 11,298,212 5,882 (65,670)
299,644 1,416,135 - -
299,644 12,714,347 5,882 (65,670)
343,361$ 12,056,622$ 810$ (65,670)$
Low/Mod
Income
Housing Park in-lieu
Capital
Projects AB939 Fee
Special Revenue Funds Capital Projects Funds
86
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Capital
Projects Fund
Debt
Service Fund
Total
Governmental
Funds
-$ -$ 1,444,100$
147,000 - 3,748,805
- - 1,707,935
26,327 160 583,778
- - 92,119
- - 175,789
173,327 160 7,752,526
- 10,275 242,145
- - 3,752,962
- - 1,080,040
- - 422,792
974 - 3,128,953
442,552 - 3,372,807
- 215,000 215,000
- 140,589 190,761
443,526 365,864 12,405,460
(270,199) (365,704) (4,652,934)
- 365,337 6,443,378
- - (2,228,410)
- 365,337 4,214,968
(270,199) (367) (437,966)
1,380,338 482,915 30,353,058
- - 1,491,497
1,380,338 482,915 31,844,555
1,110,139$ 482,548$ 31,406,589$
Public
Financing
Authority
Public Works
Endowment
87
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE TAX
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,741,156$ 1,741,156$ 1,741,156$ -$
Resources (Inflows):
Intergovernmental 1,835,440 1,738,496 1,232,680 (505,816)
Use of money and property 31,830 30,830 30,094 (736)
Miscellaneous - - 148 148
Transfers in - - 409,423 409,423
Amounts Available for Appropriation 3,608,426 3,510,482 3,413,501 (96,981)
Charges to Appropriation (Outflow):
Parks and recreation 59,000 59,000 58,964 36
Public works 1,183,685 1,272,865 1,250,973 21,892
Capital outlay 21,950 1,197,861 50,143 1,147,718
Transfers out - 306,217 32,098 274,119
Total Charges to Appropriations 1,264,635 2,835,943 1,392,178 1,443,765
Budgetary Fund Balance, June 30 2,343,791$ 674,539$ 2,021,323$ 1,346,784$
88
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,650,268$ 1,650,268$ 1,650,268$ -$
Resources (Inflows):
Taxes 792,935 792,935 620,141 (172,794)
Intergovernmental 105,725 105,725 95,098 (10,627)
Charges for services 26,000 26,000 20,351 (5,649)
Use of money and property 63,745 26,745 34,233 7,488
Amounts Available for Appropriation 2,638,673 2,601,673 2,420,091 (181,582)
Charges to Appropriation (Outflow):
Public works 975,400 976,860 872,632 104,228
Total Charges to Appropriations 975,400 976,860 872,632 104,228
Budgetary Fund Balance, June 30 1,663,273$ 1,624,813$ 1,547,459$ (77,354)$
89
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,691,943$ 1,691,943$ 1,691,943$ -$
Resources (Inflows):
Taxes 647,105 647,105 514,435 (132,670)
Charges for services 121,000 176,000 76,332 (99,668)
Use of money and property 63,440 26,940 29,139 2,199
Miscellaneous - 92,610 103,042 10,432
Amounts Available for Appropriation 2,523,488 2,634,598 2,414,891 (219,707)
Charges to Appropriation (Outflow):
Public works 749,355 750,815 618,238 132,577
Capital outlay - 1,755,985 548,085 1,207,900
Transfers out - 40,000 39,897 103
Total Charges to Appropriations 749,355 2,546,800 1,206,220 1,340,580
Budgetary Fund Balance, June 30 1,774,133$ 87,798$ 1,208,671$ 1,120,873$
90
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 637,245 851,160 719,856 (131,304)
Miscellaneous - 2,025 3,992 1,967
Amounts Available for Appropriation 637,245 853,185 723,848 (129,337)
Charges to Appropriation (Outflow):
Community development 467,250 480,834 442,915 37,919
Capital outlay - 357,009 278,525 78,484
Total Charges to Appropriations 467,250 837,843 721,440 116,403
Budgetary Fund Balance, June 30 169,995$ 15,342$ 2,408$ (12,934)$
91
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SENIOR NUTRITION
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 112,775 112,775 117,447 4,672
Contributions 78,000 88,020 83,669 (4,351)
Transfers in 107,130 113,530 114,055 525
Amounts Available for Appropriation 297,905 314,325 315,171 846
Charges to Appropriation (Outflow):
Parks and recreation 297,905 314,325 315,171 (846)
Total Charges to Appropriations 297,905 314,325 315,171 (846)
Budgetary Fund Balance, June 30 -$ -$ -$ -$
92
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC BENEFIT PROGRAM
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,170,588$ 2,170,588$ 2,170,588$ -$
Resources (Inflows):
Charges for services 750,000 750,000 650,719 (99,281)
Use of money and property 50,000 50,000 46,224 (3,776)
Miscellaneous - - 178 178
Amounts Available for Appropriation 2,970,588 2,970,588 2,867,709 (102,879)
Charges to Appropriation (Outflow):
General government 204,655 229,284 115,922 113,362
Community development 770,000 754,591 637,125 117,466
Capital outlay 10,000 290,000 246,751 43,249
Total Charges to Appropriations 984,655 1,273,875 999,798 274,077
Budgetary Fund Balance, June 30 1,985,933$ 1,696,713$ 1,867,911$ 171,198$
93
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 152,391$ 152,391$ 152,391$ -$
Resources (Inflows):
Intergovernmental 60,000 50,000 55,404 5,404
Charges for services 23,000 23,000 20,403 (2,597)
Use of money and property 3,850 2,500 3,008 508
Transfers in - - 1,638 1,638
Amounts Available for Appropriation 239,241 227,891 232,844 4,953
Charges to Appropriation (Outflow):
Public works 78,385 80,385 50,808 29,577
Capital outlay 125,115 125,115 55,842 69,273
Total Charges to Appropriations 203,500 205,500 106,650 98,850
Budgetary Fund Balance, June 30 35,741$ 22,391$ 126,194$ 103,803$
94
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
GRANTS AND SEIZURE
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 985,728$ 985,728$ 985,728$ -$
Resources (Inflows):
Intergovernmental 245,640 2,163,828 1,257,147 (906,681)
Charges for services 20,000 20,000 18,698 (1,302)
Use of money and property 2,000 15,000 14,737 (263)
Contributions 8,000 9,500 8,450 (1,050)
Miscellaneous - 12,136 67,014 54,878
Transfers in - 348,082 57,770 (290,312)
Amounts Available for Appropriation 1,261,368 3,554,274 2,409,544 (1,144,730)
Charges to Appropriation (Outflow):
General government 167,755 34,415 60 34,355
Public safety 182,625 509,682 167,199 342,483
Parks and recreation 81,400 93,400 47,669 45,731
Public works 26,000 26,000 14,886 11,114
Capital outlay 224,325 2,792,115 1,073,175 1,718,940
Transfers out - - 2,424 (2,424)
Total Charges to Appropriations 682,105 3,455,612 1,305,413 2,150,199
Budgetary Fund Balance, June 30 579,263$ 98,662$ 1,104,131$ 1,005,469$
95
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SUPPLEMENTAL LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 24,211$ 24,211$ 24,211$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 122,373 22,373
Use of money and property 100 100 1,046 946
Amounts Available for Appropriation 124,311 124,311 147,630 23,319
Charges to Appropriation (Outflow):
Public safety 107,605 107,605 67,684 39,921
Capital outlay 39,185 39,185 - 39,185
Total Charges to Appropriations 146,790 146,790 67,684 79,106
Budgetary Fund Balance, June 30 (22,479)$ (22,479)$ 79,946$ 102,425$
96
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
FIRE SAFETY
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Charges for services 45,000 137,000 111,118 (25,882)
Transfers in 3,722,900 3,722,900 3,406,961 (315,939)
Amounts Available for Appropriation 3,767,900 3,859,900 3,518,079 (341,821)
Charges to Appropriation (Outflow):
Public safety 3,767,900 3,767,900 3,518,079 249,821
Total Charges to Appropriations 3,767,900 3,767,900 3,518,079 249,821
Budgetary Fund Balance, June 30 -$ 92,000$ -$ (92,000)$
97
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MONROVIA NURSERY
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 5,796,458$ 5,796,458$ 5,796,458$ -$
Resources (Inflows):
Charges for services 366,625 366,625 606,572 239,947
Use of money and property - - 271,879 271,879
Miscellaneous - - 78 78
Amounts Available for Appropriation 6,163,083 6,163,083 6,674,987 511,904
Charges to Appropriation (Outflow):
Public works 366,625 438,759 160,417 278,342
Capital outlay - 1,131,170 179,448 951,722
Total Charges to Appropriations 366,625 1,569,929 339,865 1,230,064
Budgetary Fund Balance, June 30 5,796,458$ 4,593,154$ 6,335,122$ 1,741,968$
98
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
EMPLOYEE BENEFITS
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Transfers in 25,300 25,300 23,422 (1,878)
Amounts Available for Appropriation 25,300 25,300 23,422 (1,878)
Charges to Appropriation (Outflow):
General government 25,300 25,300 23,422 1,878
Total Charges to Appropriations 25,300 25,300 23,422 1,878
Budgetary Fund Balance, June 30 -$ -$ -$ -$
99
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
UTILITY MITIGATION
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 630,622$ 630,622$ 630,622$ -$
Resources (Inflows):
Use of money and property - 2,000 1,686 (314)
Transfers in - - 468,441 468,441
Amounts Available for Appropriation 630,622 632,622 1,100,749 468,127
Charges to Appropriation (Outflow):
Transfers out - - 387,770 (387,770)
Total Charges to Appropriations - - 387,770 (387,770)
Budgetary Fund Balance, June 30 630,622$ 632,622$ 712,979$ 80,357$
100
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
HIGHWAY 39
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,249,950$ 1,249,950$ 1,249,950$ -$
Resources (Inflows):
Use of money and property - 22,000 26,954 4,954
Amounts Available for Appropriation 1,249,950 1,271,950 1,276,904 4,954
Budgetary Fund Balance, June 30 1,249,950$ 1,271,950$ 1,276,904$ 4,954$
101
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
LACMTA
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 933,784$ 933,784$ 933,784$ -$
Resources (Inflows):
Use of money and property - 25,000 19,179 (5,821)
Amounts Available for Appropriation 933,784 958,784 952,963 (5,821)
Charges to Appropriation (Outflow):
Capital outlay - 68,801 68,801 -
Total Charges to Appropriations - 68,801 68,801 -
Budgetary Fund Balance, June 30 933,784$ 889,983$ 884,162$ (5,821)$
102
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Taxes - 243,040 309,524 66,484
Use of money and property - 100 2,045 1,945
Amounts Available for Appropriation - 243,140 311,569 68,429
Budgetary Fund Balance, June 30 -$ 243,140$ 311,569$ 68,429$
103
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AB939 FEE
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 299,644$ 299,644$ 299,644$ -$
Resources (Inflows):
Charges for services - 219,000 203,742 (15,258)
Use of money and property - 2,000 - (2,000)
Amounts Available for Appropriation 299,644 520,644 503,386 (17,258)
Charges to Appropriation (Outflow):
Public works - 178,610 160,025 18,585
Total Charges to Appropriations - 178,610 160,025 18,585
Budgetary Fund Balance, June 30 299,644$ 342,034$ 343,361$ 1,327$
104
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
LOW AND MODERATE INCOME HOUSING
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 12,714,347$ 12,714,347$ 12,714,347$ -$
Resources (Inflows):
Use of money and property 25,000 25,000 76,979 51,979
Miscellaneous 10,000 10,000 1,337 (8,663)
Transfers in 3,162,330 3,162,330 1,596,331 (1,565,999)
Amounts Available for Appropriation 15,911,677 15,911,677 14,388,994 (1,522,683)
Charges to Appropriation (Outflow):
General government 497,500 702,420 92,466 609,954
Capital outlay 1,740,000 4,660,130 423,513 4,236,617
Debt service:
Principal retirement 99,621 99,621 - 99,621
Interest and fiscal charges 50,172 50,172 50,172 -
Transfers out 3,277,700 3,277,700 1,766,221 1,511,479
Total Charges to Appropriations 5,664,993 8,790,043 2,332,372 6,457,671
Budgetary Fund Balance, June 30 10,246,684$ 7,121,634$ 12,056,622$ 4,934,988$
105
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PARK IN-LIEU
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,882$ 5,882$ 5,882$ -$
Resources (Inflows):
Intergovernmental 6,000 6,000 1,800 (4,200)
Use of money and property 600 600 88 (512)
Amounts Available for Appropriation 12,482 12,482 7,770 (4,712)
Charges to Appropriation (Outflow):
Parks and recreation 1,000 1,000 988 12
Capital outlay 2,800 5,972 5,972 -
Total Charges to Appropriations 3,800 6,972 6,960 12
Budgetary Fund Balance, June 30 8,682$ 5,510$ 810$ (4,700)$
106
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC WORKS ENDOWMENT
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,380,338$ 1,380,338$ 1,380,338$ -$
Resources (Inflows):
Intergovernmental - - 147,000 147,000
Use of money and property - 20,000 26,327 6,327
Amounts Available for Appropriation 1,380,338 1,400,338 1,553,665 153,327
Charges to Appropriation (Outflow):
Public works - - 974 (974)
Capital outlay - 543,885 442,552 101,333
Total Charges to Appropriations - 543,885 443,526 100,359
Budgetary Fund Balance, June 30 1,380,338$ 856,453$ 1,110,139$ 253,686$
107
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS REDEVELOPMENT AGENCY
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 22,410,205$ 22,410,205$ 22,410,205$ -$
Resources (Inflows):
Use of money and property 105,880 213,380 212,109 (1,271)
Miscellaneous 9,319,150 9,343,150 30,331 (9,312,819)
Transfers in 1,247,330 5,007,330 1,465,903 (3,541,427)
Amounts Available for Appropriation 33,082,565 36,974,065 24,118,548 (12,855,517)
Charges to Appropriation (Outflow):
General government 1,765,890 1,979,490 5,191,201 (3,211,711)
Community development 1,050,500 1,525,500 593,053 932,447
Capital outlay 2,007,500 7,344,000 112,873 7,231,127
Debt service:
Interest and fiscal charges 200,000 200,000 697,678 (497,678)
Transfers out 1,655,145 5,453,345 461,802 4,991,543
Total Charges to Appropriations 6,679,035 16,502,335 7,056,607 9,445,728
Budgetary Fund Balance, June 30 26,403,530$ 20,471,730$ 17,061,941$ (3,409,789)$
108
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 482,915$ 482,915$ 482,915$ -$
Resources (Inflows):
Use of money and property 4,800 4,800 160 (4,640)
Transfers in 360,590 360,590 365,337 4,747
Amounts Available for Appropriation 848,305 848,305 848,412 107
Charges to Appropriation (Outflow):
General government 4,500 4,500 10,275 (5,775)
Debt service:
Principal retirement 215,000 215,000 215,000 -
Interest and fiscal charges 140,590 140,590 140,589 1
Total Charges to Appropriations 360,090 360,090 365,864 (5,774)
Budgetary Fund Balance, June 30 488,215$ 488,215$ 482,548$ (5,667)$
109
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE REDEVELOPMENT AGENCY
YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated (24,085,688)$ (24,085,688)$ (24,085,688)$ -$
Taxes 6,197,420 3,705,560 3,980,579 275,019
Use of money and property 94,750 94,750 58,346 (36,404)
Miscellaneous - - 154 154
Transfers in 6,098,850 8,590,710 1,791,514 (6,799,196)
Long-term debt issued 3,220,990 3,220,990 391,867 (2,829,123)
Amounts Available for Appropriation (8,473,678) (8,473,678) (17,863,228) (9,389,550)
Charges to Appropriation (Outflow):
General government 1,516,730 1,516,730 1,445,311 71,419
Debt service:
Principal retirement 1,796,110 1,796,110 1,325,000 471,110
Interest and fiscal charges 6,617,300 6,617,300 5,750,040 867,260
Transfers out 5,683,360 8,175,220 2,771,620 5,403,600
Total Charges to Appropriations 15,613,500 18,105,360 11,291,971 6,813,389
Budgetary Fund Balance, June 30 (24,087,178)$ (26,579,038)$ (29,155,199)$ (2,576,161)$
110
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises. The costs of providing goods or services to the general public are financed
primarily through user charges.
Sewer/Wastewater Fund – To account for the sewer fees established to finance the costs of operating
the City sewer system.
Refuse Contract – To account for the refuse fees established to finance the cost of the refuse collection
contract with the City.
111
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2010
Totals
Assets:
Current:
Cash and investments 2,454,180$ -$ 2,454,180$
Receivables:
Accounts 189,503 381,377 570,880
Accrued interest 1,604 - 1,604
Restricted:
Cash with fiscal agent 293,120 - 293,120
Total Current Assets 2,938,407 381,377 3,319,784
Noncurrent:
Deferred Charges 87,753 - 87,753
Capital assets - net of accumulated depreciation 9,417,354 - 9,417,354
Total Noncurrent Assets 9,505,107 - 9,505,107
Total Assets 12,443,514$ 381,377$ 12,824,891$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 50,665 475,796 526,461
Accrued liabilities 47,386 - 47,386
Accrued interest 45,615 - 45,615
Due to other funds - 22,780 22,780
Accrued compensated absences 36,425 - 36,425
Bonds, notes, and capital leases 115,000 - 115,000
Total Current Liabilities 295,091 498,576 793,667
Noncurrent:
Accrued compensated absences 63,211 - 63,211
Bonds, notes, and capital leases 1,752,914 - 1,752,914
Total Noncurrent Liabilities 1,816,125 - 1,816,125
Total Liabilities 2,111,216 498,576 2,609,792
Net Assets:
Invested in capital assets, net of related debt 7,549,440 - 7,549,440
Restricted for debt service 293,120 - 293,120
Unrestricted 2,489,738 (117,199) 2,372,539
Total Net Assets 10,332,298 (117,199) 10,215,099
Total Liabilities and Net Assets 12,443,514$ 381,377$ 12,824,891$
Sewer/
Wastewater
Refuse
Contract
112
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Totals
Operating Revenues:
Sales and service charges 1,557,758$ 2,933,390$ 4,491,148$
Miscellaneous 4,528 6,636 11,164
Total Operating Revenues 1,562,286 2,940,026 4,502,312
Operating Expenses:
Treatment 1,513,518 - 1,513,518
Refuse collection - 2,924,303 2,924,303
Depreciation expense 317,030 - 317,030
Total Operating Expenses 1,830,548 2,924,303 4,754,851
Operating Income (Loss)(268,262) 15,723 (252,539)
Nonoperating Revenues (Expenses):
Taxes - 555,121 555,121
Interest revenue 80,195 - 80,195
Interest expense (123,892) - (123,892)
Special franchise fees (31,702) - (31,702)
Total Nonoperating
Revenues (Expenses)(75,399) 555,121 479,722
Income (Loss) Before Transfers (343,661) 570,844 227,183
Transfers out (140,000) (590,000) (730,000)
Changes in Net Assets (483,661) (19,156) (502,817)
Net Assets:
Beginning of Year, as originally reported 10,836,908 (98,043) 10,738,865
Restatements (20,949) - (20,949)
Beginning of Fiscal Year, as restated 10,815,959 (98,043) 10,717,916
End of Fiscal Year 10,332,298$ (117,199)$ 10,215,099$
Sewer/
Wastewater
Refuse
Contract
113
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Totals
Cash Flows from Operating Activities:
Cash received from customers and users 1,552,098$ 2,942,486$ 4,494,584$
Cash paid to supplies for goods and services (480,004) (2,935,785) (3,415,789)
Cash paid to employees for services (1,010,759) - (1,010,759)
Net Cash Provided (Used) by Operating Activities 61,335 6,701 68,036
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (140,000) (590,000) (730,000)
Repayment made to other funds - 22,780 22,780
Net Cash Provided (Used) by
Non-Capital Financing Activities (140,000) (567,220) (707,220)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (789,373) - (789,373)
Principal paid on capital debt (99,811) - (99,811)
Interest paid on capital debt (117,552)- (117,552)
Special franchise fees (31,702) - (31,702)
Taxes - 555,121 555,121
Net Cash Provided (Used) by
Capital and Related Financing Activities (1,038,438) 555,121 (483,317)
Cash Flows from Investing Activities:
Interest received 88,285 - 88,285
Net Cash Provided (Used) by
Investing Activities 88,285 - 88,285
Net Increase (Decrease) in Cash
and Cash Equivalents (1,028,818) (5,398) (1,034,216)
Cash and Cash Equivalents at Beginning of Year 3,776,118 5,398 3,781,516
Cash and Cash Equivalents at End of Year 2,747,300$ -$ 2,747,300$
Sewer/
Wastewater
Refuse
Contract
114
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2010
Totals
Sewer/
Wastewater
Refuse
Contract
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)(268,262)$ 15,723$ (252,539)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 317,030 - 317,030
(Increase) decrease in accounts receivable (10,173) 2,460 (7,713)
Increase (decrease) in accounts payable 7,544 (11,482) (3,938)
Increase (decrease) in accrued liabilities 6,416 - 6,416
Increase (decrease) in deposits payable (15) - (15)
Increase (decrease) in compensated absences 8,795 - 8,795
Total Adjustments 329,597 (9,022) 320,575
Net Cash Provided (Used) by
Operating Activities 61,335$ 6,701$ 68,036$
Non-Cash Investing, Capital, and Financing Activities:
Amortization of bond discount (5,190)$ -$ (5,190)$
Amortization of deferred debt issuance costs 7,978 - 7,978
115
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116
INTERNAL SERVICE FUNDS
The Internal Service Fund is used to account for goods and services provided by one City department to
other City departments on a cost reimbursement basis.
Consumer Services Fund – To account for the cost of providing consumer services that benefit other
funds of the City.
Self-Insurance Fund – To account for workers compensation claims, unemployment claims, City liability
premiums and claims, and third party administrative costs.
Central Services Fund – To account for costs of operating the City garage, reprographics, purchasing
and the computer services divisions.
Equipment Replacement Fund – To account for the cost of replacing equipment in various departments
within the City.
Intra-Governmental Loan Fund – To account for costs related to various advances to the
Redevelopment Agency.
IT Services Fund – To account for the accumulation and allocation of costs associated with providing
information technology services to the various City departments.
117
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2010
Assets:
Current:
Cash and investments 1,190,009$ 2,457,820$ -$ 429,366$
Receivables:
Accounts - 18,524 - -
Notes and loans 4,630 249 - -
Accrued interest 15,470 1,228 - 259
Prepaid costs 1,028 5,268 - -
Due from other funds - 38,199 - -
Total Current Assets 1,211,137 2,521,288 - 429,625
Noncurrent:
Advances to other funds - - - -
Capital assets - net of accumulated depreciation 713,379 - 50,864 871,655
Total Noncurrent Assets 713,379 - 50,864 871,655
Total Assets 1,924,516$ 2,521,288$ 50,864$ 1,301,280$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 146,417$ 397,802$ 6,196$ 5,371$
Accrued liabilities 121,564 8,714 3,862 -
Deposits payable 1,423 - - -
Due to other funds - - 37,954 -
Accrued compensated absences 182,867 731 2,017 -
Accrued claims and judgments - 987,464 - -
Total Current Liabilities 452,271 1,394,711 50,029 5,371
Noncurrent:
Accrued compensated absences 100,681 9,580 7,785 -
Accrued claims and judgments - 1,315,270 - -
Total Noncurrent Liabilities 100,681 1,324,850 7,785 -
Total Liabilities 552,952 2,719,561 57,814 5,371
Net Assets:
Invested in capital assets, net of related debt 713,379 - 50,864 871,655
Unrestricted 658,185 (198,273) (57,814) 424,254
Total Net Assets 1,371,564 (198,273) (6,950) 1,295,909
Total Liabilities and Net Assets 1,924,516$ 2,521,288$ 50,864$ 1,301,280$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
118
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2010
Assets:
Current:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Prepaid costs
Due from other funds
Total Current Assets
Noncurrent:
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
Deposits payable
Due to other funds
Accrued compensated absences
Accrued claims and judgments
Total Current Liabilities
Noncurrent:
Accrued compensated absences
Accrued claims and judgments
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
Totals
-$ 275,194$ 4,352,389$
- - 18,524
- 887 5,766
- - 16,957
- 19,448 25,744
- - 38,199
- 295,529 4,457,579
18,468,143 - 18,468,143
- - 1,635,898
18,468,143 - 20,104,041
18,468,143$ 295,529$ 24,561,620$
-$ 38,731$ 594,517$
- 47,980 182,120
- - 1,423
- - 37,954
- 37,793 223,408
- - 987,464
- 124,504 2,026,886
- 168,157 286,203
- - 1,315,270
- 168,157 1,601,473
- 292,661 3,628,359
- - 1,635,898
18,468,143 2,868 19,297,363
18,468,143 2,868 20,933,261
18,468,143$ 295,529$ 24,561,620$
Intra-
Governmental
Loan Fund IT Services
119
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2010
Operating Revenues:
Sales and service charges 6,259,268$ 2,168,357$ 151,537$ -$
Miscellaneous 22,323 97,516 - 204
Total Operating Revenues 6,281,591 2,265,873 151,537 204
Operating Expenses:
Source of supply 162,936 - 39,056 -
Claims expense 358,260 940,251 - -
Administration and general 5,410,174 1,296,976 112,481 -
Depreciation expense 176,020 - 6,950 140,843
Total Operating Expenses 6,107,390 2,237,227 158,487 140,843
Operating Income (Loss)174,201 28,646 (6,950) (140,639)
Nonoperating Revenues (Expenses):
Interest revenue 5,637 40,042 - 10,856
Gain (loss) on disposal of capital assets - - - (31,812)
Total Nonoperating
Revenues (Expenses)5,637 40,042 - (20,956)
Income (Loss) Before Transfers 179,838 68,688 (6,950) (161,595)
Transfers in - 38,200 - -
Transfers out (179,839) - - -
Changes in Net Assets (1) 106,888 (6,950) (161,595)
Net Assets:
Beginning of Year, as originally reported 1,371,565 (307,998) - 1,457,504
Restatements - 2,837 - -
Beginning of Fiscal Year, as restated 1,371,565 (305,161) - 1,457,504
End of Fiscal Year 1,371,564$ (198,273)$ (6,950)$ 1,295,909$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
120
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2010
Operating Revenues:
Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Source of supply
Claims expense
Administration and general
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
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 originally reported
Restatements
Beginning of Fiscal Year, as restated
End of Fiscal Year
Totals
558,151$ 1,873,941$ 11,011,254$
- - 120,043
558,151 1,873,941 11,131,297
- 166,945 368,937
- - 1,298,511
- 1,704,128 8,523,759
- - 323,813
- 1,871,073 10,515,020
558,151 2,868 616,277
1,063,055 - 1,119,590
- - (31,812)
1,063,055 - 1,087,778
1,621,206 2,868 1,704,055
- - 38,200
- - (179,839)
1,621,206 2,868 1,562,416
16,846,937 - 19,368,008
- - 2,837
16,846,937 - 19,370,845
18,468,143$ 2,868$ 20,933,261$
Intra-
Governmental
Loan Fund IT Services
121
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2010
Cash Flows from Operating Activities:
Cash received from customers and users 6,285,616$ 2,276,681$ 151,537$ 204$
Cash paid to supplies for goods and services (503,276) (1,347,043) (34,815) 4,278
Cash paid to employees for services (5,414,917) (1,292,167) (112,139) -
Net Cash Provided (Used) by Operating Activities 367,423 (362,529) 4,583 4,482
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (179,839) - - -
Cash transfers in - 38,200 - -
Cash due from other funds (38,199) -
Repayment made to other funds - - (4,583) -
Advance to other funds - - - -
Net Cash Provided (Used) by
Non-Capital Financing Activities (179,839) 1 (4,583) -
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (16,121) - - (100,746)
Net Cash Provided (Used) by
Capital and Related Financing Activities (16,121) - - (100,746)
Cash Flows from Investing Activities:
Repayment of loans (805) 2,157 - -
Interest received 76,943 45,329 - 11,149
Net Cash Provided (Used) by
Investing Activities 76,138 47,486 - 11,149
Net Increase (Decrease) in Cash
and Cash Equivalents 247,601 (315,042) - (85,115)
Cash and Cash Equivalents at Beginning of Year 942,408 2,772,862 - 514,481
Cash and Cash Equivalents at End of Year 1,190,009$ 2,457,820$ -$ 429,366$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)174,201$ 28,646$ (6,950)$ (140,639)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 176,020 - 6,950 140,843
(Increase) decrease in accounts receivable 4,076 10,808 - -
(Increase) decrease in prepaid expense 5,508 (122) - -
Increase (decrease) in accounts payable 12,412 358,765 4,241 4,278
Increase (decrease) in accrued liabilities 4,238 1,169 1,167 -
Increase (decrease) in deposits payable (51) - - -
Increase (decrease) in claims and judgments - (765,435) - -
Increase (decrease) in compensated absences (8,981) 3,640 (825) -
Total Adjustments 193,222 (391,175) 11,533 145,121
Net Cash Provided (Used) by
Operating Activities 367,423$ (362,529)$ 4,583$ 4,482$
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets -$ -$ -$ (31,812)$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
122
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2010
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to supplies for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out
Cash transfers in
Cash due from other funds
Repayment made to other funds
Advance to other funds
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
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
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 prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets
Totals
558,151$ 1,874,029$ 11,146,218$
- (267,611) (2,148,467)
- (1,693,300) (8,512,523)
558,151 (86,882) 485,228
- - (179,839)
- - 38,200
(38,199)
- - (4,583)
(1,621,206) - (1,621,206)
(1,621,206) - (1,805,627)
- - (116,867)
- - (116,867)
- 2,555 3,907
1,063,055 - 1,196,476
1,063,055 2,555 1,200,383
- (84,327) (236,883)
- 359,521 4,589,272
-$ 275,194$ 4,352,389$
558,151$ 2,868$ 616,277$
- - 323,813
- 88 14,972
- (7,961) (2,575)
- (92,705) 286,991
- (203) 6,371
- - (51)
- - (765,435)
- 11,031 4,865
- (89,750) (131,049)
558,151$ (86,882)$ 485,228$
-$ -$ (31,812)$
Intra-
Governmental
Loan Fund IT Services
123
CITY OF AZUSA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2010
Balance Balance
July 1, 2009 Additions Deductions June 30, 2010
Deposit Trust
Assets:
Pooled cash and investments 1,478,374$ 5,110,852$ 3,767,427$ 2,821,799$
Receivables:
Accounts 222 5,000 222 5,000
Taxes 38,987 88,256 38,987 88,256
Total Assets 1,517,583$ 5,204,108$ 3,806,636$ 2,915,055$
Liabilities:
Accounts payable 1,442,991$ 10,510,887$ 9,092,694$ 2,861,184$
Accrued liabilities 35,006 23,657 48,561 10,102
Deposits payable 31,417 29,649 22,891 38,175
Due to other governments 8,169 6,749 9,324 5,594
Total Liabilities 1,517,583$ 10,570,942$ 9,173,470$ 2,915,055$
124
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
WATER - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Water
Operating Revenues:
Residential sales 8,932,609 $
Commercial sales 3,082,179
Industrial sales 2,630,635
Fees 51,461
Other revenue 5,944,248
Total Operating Revenues 20,641,132
Operating Expenses:
Production 5,288,438
Transmission and distribution 2,311,429
Customer accounting and sales 4,010,622
Uncollectible accounts 69,359
Administrative and general 679,721
Depreciation 3,231,508
Total Operating Expenses 15,591,077
Operating Income (Loss)5,050,055
Nonoperating Revenues (Expenses):
Interest revenue 576,697
Interest expense (3,320,896)
Franchise and in-lieu-tax (316,101)
Total Nonoperating Revenues (Expenses) (3,060,300)
Net Income (Loss) Before Transfers 1,989,755
Transfers Out (468,441)
Net Income 1,521,314
Net Assets:
Beginning of Fiscal Year 53,811,667
Restatements (341,379)
Beginning of Fiscal Year, as restated 53,470,288
End of Fiscal Year 54,991,602 $
125
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
LIGHT - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Light
Operating Revenues:
Sale/electricity - residential 10,055,529$
Sale/electricity - commercial and industrial 19,362,315
Sale/electricity - other 1,141,500
Sale/electricity - resale 4,389,141
Other revenue 1,523,782
Total Operating Revenues 36,472,267
Operating Expenses:
Purchase power 26,042,269
Transmission/dispatching 2,938,419
Operation and maintenance 2,191,070
Uncollectible accounts 151,766
Administration general expenditures 3,637,459
Depreciation 1,239,766
Total Operating Expenses 36,200,749
Operating Income 271,518
Nonoperating Revenues (Expenses):
Interest income 1,090,532
Interest expense (511,391)
Franchise and in-lieu-tax (3,064,635)
Gain (loss) on disposal of asset (706)
Total Nonoperating Revenues (Expenses)(2,486,200)
Net Income Before Transfers (2,214,682)
Transfers Out (8,100)
Net Income (2,222,782)
Net Assets:
Beginning of Fiscal Year 60,720,511
Restatements (567)
Beginning of Fiscal Year, as restated 60,719,944
End of Fiscal Year 58,497,162$
126
(Unaudited)
Financial Trends Page No.
129-133
Revenue Capacity
134-143
Debt Capacity
144-150
Demographic and Economic Information
151-153
Operating Information
154-156
These schedules contain service and infrastructure data to
help the reader understand how the information in the
City's financial report relates to the services the City
provides and the activities it performs.
CITY OF AZUSA
Statistical Section
This part of the City of Azusa's comprehensive annual financial report presents detailed information as a context to
aid the reader in understanding the information presented in the financial statements, and the required
supplementary information and the City's overall financial health.
These schedules contain trend information to help the
reader understand how the City's financial performance
and well-being have changed over time.
These schedules contain information to help the reader
assess the City's significant local revenue sources.
These schedules contain information to help the reader
assess the affordability of the City's levels of outstanding
debt and the ability to issue additional debt in the future.
These schedules offer demographic and economic
indicators to assist the reader to understand the
environment within which the City's financial activities take
place.
127
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128
2003 2004 2005 2006 2007 2008 2009 2010
Governmental activities:
Invest in capital assets,20,066,694$ (7,424,107)$ (6,479,067)$ 21,364,755$ 20,192,108$ 18,385,294$ 19,090,231$ 19,372,237$
net of related debt
Restricted 6,430,199 8,688,646 13,747,240 15,245,722 21,624,059 38,694,105 60,470,894 55,734,821
Unrestricted (11,558,886) 16,198,291 18,382,918 (11,464,340) (18,347,943) (31,815,388) (58,874,825) (67,047,309)
Total governmental activities net assets 14,938,007$ 17,462,830$ 25,651,091$ 25,146,137$ 23,468,224$ 25,264,011$ 20,686,300$ 8,059,749$
Business-type activities:
Invest in capital assets,-$ 48,868,554$ 51,528,964$ 53,207,811$ 57,312,869$ 57,372,662$ 57,578,956$ 58,696,499$
net of related debt
Restricted - - 5,622,733 5,426,232 5,228,056 5,045,495 5,049,234 5,069,361
Unrestricted 101,755,211 58,615,104 58,567,909 64,855,723 69,437,708 67,473,534 64,014,418 61,309,567
Total business-type activities net assets 101,755,211$ 107,483,658$ 115,719,606$ 123,489,766$ 131,978,633$ 129,891,691$ 126,642,608$ 125,075,427$
Primary government:
Invest in capital assets,20,066,694$ 41,444,447$ 45,049,897$ 74,572,566$ 77,504,977$ 75,757,956$ 76,669,187$ 78,068,736$
net of related debt
Restricted 6,430,199 8,688,646 19,369,973 20,671,954 26,852,115 43,741,600 65,520,128 60,804,182
Unrestricted 90,196,325 74,813,395 76,950,827 53,391,383 51,089,765 35,656,146 5,139,593 (5,825,627)
Total primary government net assets 116,693,218$ 124,946,488$ 141,370,697$ 148,635,903$ 155,446,857$ 155,155,702$ 147,328,908$ 133,135,176$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
*
Source: City of Azusa Administrative Services Finance Department
This schedule is intended to eventually cover 10 years worth of data. The last eight years of data is available.
CITY OF AZUSA
Table 1 - Net Assets by Component
Last Eight Fiscal Years (accrual basis of accounting)*
Fiscal Year
129
2003 2004 2005 2006 2007 2008 2009 2010
Program Revenue:
Governmental activities:
Charges for services
General government 2,617,760$ 2,554,471$ 2,179,493$ 2,923,478$ 3,553,435$ 3,930,106$ 3,418,393$ 3,760,159$
Public Safety 492,501 487,911 661,246 482,386 620,542 755,186 681,943 871,900
Community development 1,619,557 1,666,667 1,259,160 1,370,152 1,596,453 1,697,467 1,358,872 1,659,057
Parks and recreation 522,943 513,809 479,689 651,025 625,955 685,468 1,127,077 1,179,080
Public Works 2,687,277 2,818,250 350,006 217,389 168,218 168,657 203,280 368,275
Operating grants and contributions 2,769,066 3,274,104 2,802,814 2,701,410 3,054,171 2,731,195 5,307,696 3,261,472
Capital grants and contributions 271,853 90,663 4,632,500 820,744 497,905 468,279 286,875 654,467
Total governmental activities
program revenues 10,980,957 11,405,875 12,364,908 9,166,584 10,116,679 10,436,358 12,384,136 11,754,410
Business-type activities:
Charges for services
Water 14,092,060 15,921,702 16,439,341 14,925,757 17,254,963 16,501,434 14,805,241 20,592,358
Light 28,637,629 38,283,706 36,101,801 38,050,462 34,932,840 35,998,389 34,496,805 35,192,941
Sewer/Wastewater 1,159,851 1,256,831 1,281,085 1,361,125 1,398,925 1,470,452 1,508,325 1,557,758
Refuse contract - - 2,509,096 2,587,410 2,812,595 2,996,275 2,968,742 2,933,390
Operating grants and contributions 80,000 35,000 - - - - - 84
Total business-type activities
program revenues 43,969,540 55,497,239 56,331,323 56,924,754 56,399,323 56,966,550 53,779,113 60,276,531
Total primary government
program revenues 54,950,497$ 66,903,114$ 68,696,231$ 66,091,338$ 66,516,002$ 67,402,908$ 66,163,249$ 72,030,941$
Expenses:
Governmental activities:
General government 8,996,579$ 11,590,481$ 12,363,638$ 12,430,022$ 9,966,734$ 11,582,357$ 15,047,013$ 16,368,337$
Public safety 13,437,396 14,024,191 15,271,689 15,442,417 17,101,215 18,772,865 20,459,265 19,458,795
Community development 3,201,470 2,743,489 2,089,532 2,951,307 10,467,848 4,178,449 5,690,458 4,041,516
Parks and recreation 3,138,244 2,849,141 2,896,476 3,192,373 3,412,918 3,737,791 4,083,565 3,950,786
Public works 6,319,540 6,712,191 3,015,537 2,902,189 3,418,493 5,494,887 4,577,435 4,688,537
Interest on long-term debt 3,320,928 2,700,951 3,254,753 2,756,978 3,437,231 4,757,068 6,224,638 7,274,723
Total governmental activities
expenses 38,414,157 40,620,444 38,891,625 39,675,286 47,804,439 48,523,417 56,082,374 55,782,694
Business-type activities:
Water 12,909,266 13,457,839 11,501,923 12,192,788 15,681,384 18,473,689 17,225,088 19,114,843
Electric 29,510,578 36,044,008 34,280,527 36,578,602 34,713,270 38,827,637 36,939,301 39,715,805
Sewer/Wastewater 901,849 965,977 1,075,063 1,267,327 1,604,557 1,653,043 1,995,785 1,986,142
Refuse contract - - 2,526,134 2,642,780 2,918,732 3,247,734 3,028,270 2,924,303
Total business-type activities
expenses 43,321,693 50,467,824 49,383,647 52,681,497 54,917,943 62,202,103 59,188,444 63,741,093
Total primary government
program expenses 81,735,850 91,088,268 88,275,272 92,356,783 102,722,382 110,725,520 115,270,818 119,523,787
Net revenues (expenses):
Governmental activities (27,433,200) (29,214,569) (26,526,717) (30,508,702) (37,687,760) (38,087,059) (41,491,520) (44,028,284)
Business-type activities 647,847 5,029,415 6,947,676 4,243,257 1,481,380 (5,235,553) (5,409,331) (3,464,562)
Total net revenues (expenses) (26,785,353) (24,185,154) (19,579,041) (26,265,445) (36,206,380) (43,322,612) (46,900,851) (47,492,846)
Fiscal Year
CITY OF AZUSA
Table 2 - Change in Net Assets
Last Eight Fiscal Years (accrual basis)
130
2003 2004 2005 2006 2007 2008 2009 2010
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes, general purpose 7,873,470$ 8,771,497$ 8,609,486$ 9,737,041$ 11,044,335$ 10,372,529$ 13,518,253$ 10,032,979$
Transient occupancy taxes 209,496 175,518 259,384 242,581 234,427 243,261 226,268 200,840
Sales tax 4,657,435 5,495,965 5,902,641 5,452,652 6,025,756 6,328,962 6,202,335 4,716,305
Franchise taxes 4,849,114 5,699,276 5,170,846 5,275,972 5,544,594 5,654,896 5,821,976 5,595,423
Business licenses taxes 1,400,507 1,438,612 1,538,113 1,537,442 1,637,775 1,640,425 1,755,831 1,829,503
Utility Users tax 2,051,753 2,779,802 2,919,740 3,086,589 3,289,210 3,302,442 3,260,191 3,059,121
Other taxes 3,616,276 4,126,917 4,429,649 4,504,355 4,798,699 1,397,618 1,131,885 1,102,339
Motor vehicle in lieu-unrestricted 2,631,988 2,160,633 3,857,205 95,470 326,101 232,989 157,012 137,557
Investment income 1,775,881 2,027,745 2,202,272 2,489,094 4,322,594 3,932,540 3,967,549 2,914,790
Other general revenues 186,413 (744,883) 37,884 131,917 373,063 2,702,680 707,536 441,956
Transfers 2,360,164 1,544,223 2,303,545 664,206 700,000 4,392,846 2,249,387 1,386,380
Total governmental activities 31,612,497 33,475,305 37,230,765 33,217,319 38,296,554 40,201,188 38,998,223 31,417,193
Business-type activities:
Property taxes,general purpose - - 501,297 638,821 594,065 631,036 586,254 555,121
Investment income 1,935,609 1,445,383 1,895,324 2,619,090 4,236,645 4,954,367 2,579,973 1,753,061
Gain on sale of assets 932 8,473 299,469 183,829 - (38,373) 797 2,306
Transfers (2,360,164) (1,544,223) (2,303,545) (664,206) (700,000) (4,392,846) (2,249,387) (1,386,380)
Miscellaneous 3,953,851 2,369,747 895,727 273,296 2,676,882 1,841,306 1,230,835 1,336,168
Total business-type activities 3,530,228 2,279,380 1,288,272 3,050,830 6,807,592 2,995,490 2,148,472 2,260,276
Total general revenues 35,142,725 35,754,685 38,519,037 36,268,149 45,104,146 43,196,678 41,146,695 33,677,469
Changes in net assets:
Governmental activities 4,179,297 4,260,736 10,704,048 2,708,617 608,794 2,114,129 (2,493,297) (12,611,091)
Business-type activities 4,178,075 7,308,795 8,235,948 7,294,087 8,288,972 (2,240,063) (3,260,859) (1,204,286)
Total primary government 8,357,372$ 11,569,531$ 18,939,996$ 10,002,704$ 8,897,766$ (125,934)$ (5,754,156)$ (13,815,377)$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City of Azusa Administrative Services Finance Department
Fiscal Year
CITY OF AZUSA
Table 2 - Change in Net Assets (Continued)
Last Eight Fiscal Years (accrual basis)
131
Table 3 - Fund Balances of Governmental Funds
2003 2004 2005 2006 2007 2008 2009 2010
General fund:
Reserved 2,025,278$ 97,561$ 175,890$ 150,700$ 142,136$ 196,095$ 500,389$ 5,827,294$
Unreserved 8,041,891 9,242,867 10,235,771 11,644,387 14,225,783 13,753,667 11,914,867 3,777,753
Total general fund 10,067,169$ 9,340,428$ 10,411,661$ 11,795,087$ 14,367,919$ 13,949,762$ 12,415,256$ 9,605,047$
All other governmental funds:
Reserved 1,657,947$ 3,196,545$ 4,445,816$ 3,236,097$ 17,873,011$ 23,069,640$ 43,489,276$ 47,472,564$
Unreserved, reported in:
Special revenue funds 7,032,508 6,263,545 13,629,201 13,120,059 13,671,472 15,616,841 21,491,624 13,022,299
Capital projects funds 4,844,576 8,934,984 2,705,239 3,010,074 2,487,655 1,904,457 1,320,550 1,045,279
Debt service funds 563,939 493,002 502,039 502,223 493,188 502,244 482,915 482,548
Redevelopment agency (8,437,466) (15,071,004) (4,067,346) (6,084,383) (30,748,209) (23,307,890) (36,129,562) (42,709,359)
Total all other governmental funds: 5,661,504$ 3,817,072$ 17,214,949$ 13,784,070$ 3,777,117$ 17,785,292$ 30,654,803$ 19,313,331$
The City of Azusa has elected to show only eight years of data for this schedule.
Source: City of Azusa Administrative Services Finance Department
CITY OF AZUSA
Last Eight Fiscal Years (modified accrual basis)
Fiscal Year
132
2003 2004 2005 2006 2007 2008 2009 2010
Revenues:
Taxes 24,915,096$ 27,628,236$ 29,394,950$ 26,387,805$ 28,984,072$ 29,190,305$ 31,265,067$ 27,033,859$
Assessments 2,141,886 1,915,404 1,562,690 2,166,435 2,638,293 2,661,618 2,930,897 3,027,016
Licenses and permits 794,766 463,124 361,910 433,673 481,994 532,775 381,993 472,389
Intergovernmental 2,898,290 3,186,244 2,852,725 3,617,152 3,609,169 3,387,074 5,960,103 4,064,951
Charges for services 4,858,921 5,578,737 2,316,927 2,484,513 2,565,974 3,008,524 2,734,773 3,185,660
Developer participation - - 4,632,500 - - - -
Investment income 1,120,927 1,288,943 1,173,207 1,294,508 3,205,561 2,765,219 1,859,424 1,335,922
Fines and forfeitures 447,888 313,275 726,726 556,776 815,558 897,816 967,012 1,104,715
Contributions 93,275 87,696 298,431 154,636 106,592 99,211 106,450 113,363
Miscellaneous 236,897 (442,142) 50,453 166,677 422,313 3,001,938 713,547 573,008
Total Revenues 37,507,946 40,019,517 43,370,519 37,262,175 42,829,526 45,544,480 46,919,266 40,910,883
Expenditures:
Current:
General government 9,045,654 7,192,815 7,767,243 9,701,352 9,070,967 11,136,420 12,490,585 14,248,881
Public safety 13,082,021 13,870,209 15,128,730 15,111,854 16,813,699 18,534,126 26,948,793 19,144,169
Community development 3,201,545 2,730,878 2,077,048 2,948,683 10,455,704 4,166,223 5,191,932 3,271,672
Parks and recreation 2,907,396 2,628,181 2,646,317 2,902,603 3,054,964 3,388,218 3,607,838 3,519,626
Public Works 6,237,664 6,550,247 2,862,628 2,772,437 2,964,749 3,666,010 3,847,822 4,660,196
Capital Outlay 3,751,601 4,682,136 1,874,653 2,982,756 3,333,934 4,847,786 3,493,096 2,804,345
Debt service:
Principal retirement 988,577 15,722,840 1,340,000 1,085,000 1,100,000 915,000 1,355,000 2,020,000
Interest and fiscal charges 3,242,234 3,664,521 3,633,844 2,624,113 3,319,471 4,392,178 5,298,820 7,115,425
Pass-through agreement payments - 3,385,982 3,389,278 - - -
- - - - - 718,237 878,581
Total Expenditures 42,456,692 60,427,809 40,719,741 40,128,798 50,113,488 51,764,198 63,112,467 56,784,314
Excess (Deficiency) of revenues
over (under) expenditures (4,948,746) (20,408,292) 2,650,778 (2,866,623) (7,283,962) (6,219,718) (16,193,201) (15,873,431)
Other Financing Sources (Uses):
Transfer in 14,374,315 30,125,538 19,383,272 12,513,835 8,891,433 51,422,808 25,925,067 10,710,775
Transfer out (13,131,114) (28,692,998) (17,155,250) (11,849,629) (9,208,303) (47,179,912) (23,675,680) (9,362,595)
Notes and loans issued 130,098 16,405,000 9,186,357 232,038 166,711 20,820,182 25,879,924 391,867
Other financing sources - 7,680 - - - (4,935,000) (323,410)
Total Other Financing Sources
(Uses)1,373,299 17,845,220 11,414,379 896,244 (150,159) 20,128,078 27,805,901 1,740,047
Net change in fund balances (3,575,447)$ (2,563,072)$ 14,065,157$ (1,970,379)$ (7,434,121)$ 13,908,360$ 11,612,700$ (14,133,384)$
Debt service as a percentage of
noncapital expenditures 10.9%40.9% 21.5% 10.0%9.4%11.3%11.2%16.9%
The City of Azusa has elected to show only eight years of data for this schedule.
Source: City of Azusa Administrative Services Finance Department
Bond issuance costs
CITY OF AZUSA
Table 4 - Changes in Fund Balances of Governmental Funds
Last Eight Fiscal Years (modified accrual basis)
Fiscal Year
133
Fiscal Year Residential
Commercial/
Industrial Other Total
2003 6,710,591$ 14,154,158$ 1,029,090$ 21,893,839$
2004 8,468,729 17,079,440 1,227,993 26,776,162
2005 9,803,365 15,352,263 1,127,046 26,282,674
2006 8,658,939 17,607,907 1,147,509 27,414,355
2007 9,664,916 18,376,638 1,250,079 29,291,633
2008 10,070,006 19,258,199 1,202,641 30,530,846
2009 10,180,795 19,429,530 1,136,677 30,747,002
2010 10,055,529 19,362,315 1,141,500 30,559,344
Source: City of Azusa Light & Water Department
Type of Customer
City of Azusa
Table 5 - Light Department
Electricity Sold by Type of Customer
Last Eight Fiscal Years
134
Fiscal Monthly Rate per Rate per
Year Ended Base <250 >250
June 30 Rate kWh kWh
06/02-09/02 2.89$ 0.0878$ 0.1126$
10/02-06/03 3.18 0.0966 0.1239
07/03-06/04 3.18 0.0966 0.1239
07/04-06/05 3.18 0.0966 0.1239
07/05-09/05 3.18 0.0966 0.1239
10/05-06/06 3.34 0.1014 0.1301
7/06-6/07 3.34 0.1014 0.13006
7/07-6/08 3.49 0.1061 0.13604
7/08-6/09 3.49 0.1061 0.13604
7/09-11/09 3.49 0.1061 0.13604
12/09-6/10 3.81 0.1200 0.1500
NOTE:
Source: City of Azusa Light & Water Department
Rates are based on residential meter,which is the standard household
meter size. There is an additional charge for excess-use rate above
normal demand.
City of Azusa
Table 6 - Electricity Rates
Last Eight Fiscal Years
135
2007 2008 2009 2010
Percentage of Percentage of Percentage of Percentage of
Light Total Light Light Total Light Light Total Light Light Total Light
Light Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 1,614,093$ 5.510% 1,649,793$ 5.404% 1,686,278$ 5.484% 1,907,792$ 6.243%
S & S Foods LLC 1,338,472 4.569% 1,245,225 4.079% 1,310,363 4.262% 1,377,385 4.507%
Rainbird Corp./CA Div.568,169 1.940% 1,080,719 3.540% 876,034 2.849% 913,206 2.988%
Azusa USD 1,653,411 5.645% 833,111 2.729% 851,020 2.768% 848,494 2.777%
Criterion Catalyst & Tech LP 869,877 2.970% 827,035 2.709% 823,604 2.679% 876,881 2.869%
City of Glendora 625,972 2.137% 477,556 1.564% 514,909 1.675% 630,202 2.062%
Costco Wholesale Corp. 596,507 2.036% 567,662 1.859% 617,698 2.009% 605,910 1.983%
Northrop Grumman Sys. 515,729 1.761% 488,597 1.600% 507,168 1.649% 485,763 1.590%
Azusa Western 307,782 1.051% 235,915 0.773% 259,979 0.846% 187,312 0.613%
Morris Partnership 286,965 0.980% 283,135 0.927% 234,419 0.762% 247,137 0.809%
Hansen's Juices (Naked Juice)288,546 0.985% 254,516 0.834% - 0.000% - 0.000%
California Amforge Corp - 319,098 1.045% 300,181 0.976% 246,842 0.808%
City of Azusa - 1,166,642 3.821% 1,050,852 3.418% 1,099,736 3.599%
Verizon Wireless Inc - - 528,635 1.719% 543,655 1.779%
Artisan Screen Process - - 244,353 0.795% 289,808 0.948%
Thermal Remediation Solution - - - 187,845 0.615%
Total 8,665,523$ 29.584% 9,429,004$ 30.884% 9,805,493$ 31.891% 10,447,967$ 34.189%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
City of Azusa
Table 7 - Largest Electrical Customers
Last Four Fiscal Years
136
Last Eight Fiscal Years
Type of Customer
Fiscal Year Residential Commercial Industrial Total
2003 8,303,545$ 2,951,383$ 1,369,646$ 12,624,574$
2004 8,866,553 4,169,825 1,509,844 14,546,222
2005 8,455,712 4,022,604 1,354,218 13,832,534
2006 8,084,959 3,147,304 2,274,028 13,506,291
2007 9,145,318 3,260,316 2,697,339 15,102,973
2008 9,218,162 3,155,962 2,360,731 14,734,855
2009 7,740,102 2,770,336 2,551,733 13,062,171
2010 8,932,609 3,082,179 2,630,635 14,645,423
Source: City of Azusa Light & Water Department
City of Azusa
Table 8 - Water Sold by Type of Customer
137
Fiscal Monthly Rate per Rate per
Year Ended Base 0-17 >17
Activity Rate CCF CCF
07/02-06/03 10.75$ 0.77$ 1.21$
07/03 10.75 0.765 1.21
08/03-06/04 11.22 0.798 1.26
07/04-06/05 11.22 0.798 1.26
07/5-10/05 11.22 0.798 1.26
11/05-06/06 11.56 0.822 1.30
7/06-6/07 11.56 0.822 1.30
7/07-6/08 12.50 0.870 1.38
07/08-6/09 12.50 0.870 1.38
0-12 CCF >12 CCF
7/09-6/10 14.74 0.871 1.69
NOTE:
(2) Tiers changed from 17 to 12 in July 2009
Source: City of Azusa Light & Water Department
City of Azusa
Table 9 - Water Rates
Last Eight Fiscal Years
(1) Rates are based on 3/4" meter, which is the standard household
meter size. There is an additional charge for excess-use rate above
normal demand.
138
2007 2008 2009 2010
Percentage of Percentage of Percentage of Percentage of
Water Total Water Water Total Water Water Total Water Water Total Water
Water Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues
Miller Brewery 1,108,381$ 7.339% 974,421$ 6.613% 1,371,278$ 10.498% 1,280,978$ 8.747%
Ready Pac 598,605 3.963% 450,547 3.058% 371,827 2.847% 431,649 2.947%
Azusa Western 572,615 3.791% 226,896 1.540% 419,714 3.213% 328,989 2.246%
Azusa Unified School District 361,142 2.391% 252,836 1.716% 293,496 2.247% 263,852 1.802%
City of Azusa 197,304 1.306%78,263 0.531%86,393 0.661%94,955 0.648%
APU Foundation 201,995 1.337% 105,514 0.716% 119,322 0.913% 131,298 0.897%
Covina Valley USD 171,080 1.133%78,162 0.530%84,487 0.647%74,237 0.507%
Azusa Greens Country Club 130,010 0.861% 105,103 0.713% 115,081 0.881% 119,771 0.818%
S&S Foods LLC 104,793 0.694%76,160 0.517%69,207 0.530%83,896 0.573%
Citrus College 87,039 0.576%47,877 0.325%44,088 0.338%43,123 0.294%
Azusa Carefree Association - 0.000%42,915 0.291%44,259 0.339%43,429 0.297%
Calmat Site #1055-A 66,159 0.438%27,141 0.184%- -
NCI - - 48,432 0.371%56,389 0.385%
Lovin Oven - - 43,537 0.333%-
Hector Perales - - - 280,785 1.917%
Mountain Cove - - - 72,707 0.496%
Mike Nijjar-060 - - - 71,217 0.486%
Total 3,599,122$ 23.831% 2,465,835$ 16.735% 3,111,121$ 23.818% 3,377,276$ 23.060%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
City of Azusa
Table 10 - Largest Water Customers
Last Four Fiscal Years
139
City Redevelopment Agency
Fiscal Year Taxable Taxable Total
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value (1)Secured Unsecured Value
(1)Rate
2003 1,271,756,979$ 74,591,008$ 1,346,347,987$ 534,845,413$ 77,598,421$ 612,443,834$ 0.35563%
2004 1,416,059,948 79,782,839 1,495,842,787 591,085,088 78,901,426 669,986,514 0.35908%
2005 1,496,197,287 68,669,721 1,564,867,008 655,568,717 85,621,804 741,190,521 0.36401%
2006 1,718,308,956 64,069,228 1,782,378,184 704,055,664 92,540,432 796,596,096 0.34399%
2007 2,307,392,525 68,162,253 2,375,554,778 753,702,319 98,076,522 851,778,841 0.34395%
2008 2,514,920,977 74,038,048 2,588,959,025 3,370,977,583 175,725,533 3,546,703,116 0.32395%
2009 2,474,468,333 74,013,744 2,548,482,077 3,361,956,144 186,730,856 3,548,687,000 0.33319%
2010 2,226,506,719 66,363,721 2,292,870,440 3,070,481,861 178,200,831 3,248,682,692 0.33534%
The City of Azusa has elected to show only eight years of data for this schedule.
(1) Exempt assessed values are not included in assessed value.
Exemptions are netted directly against the individual property categories.
NOTE:
Source: County of Los Angeles Auditor-Controller Tax Division
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based
upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation
factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new
owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation
date shown above represents the only data currently available with respect to the actual market value of taxable property and is
subject to the limitations described.
CITY OF AZUSA
Table 11 - Assessed Value and Estimated Actual Value of Taxable Property
Last Eight Fiscal Years
(in thousand of dollars)
140
2003 2004 2005 2006 2007 2008 2009 2010
City Direct Rates:
General City 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.14921$ 0.14921$
Redevelopment Agency 1.06640 1.05940 1.05560 1.02080 1.04210 1.02976 1.01800 1.01800
Total Direct Rate 0.35563 0.35908 0.36401 0.34399 0.34395 0.32395 0.33319 0.33534
Overlapping Rates:
Azusa Unified School District 0.29694 0.28223 0.27690 0.26611 0.27251 0.27218 0.22963 0.23269
Childrens Center Fund 0.00064 0.00064 0.00064 0.00064 0.00064 0.00064 0.00064 0.00064
Childrens Institutional Tuition Fund 0.00278 0.00278 0.00278 0.00278 0.00278 0.00278 0.00278 0.00278
Citrus Community College 0.02458 0.02458 0.02458 0.02458 0.02458 0.02460 0.00602 0.02460
Educational Aug Fund Impound 0.17075 0.17075 0.17075 0.17075 0.17075 0.17070 0.17070 0.17070
Educational Revenue Augmentation Fund 0.07579 0.07579 0.07579 0.07579 0.07579 0.07790 0.07790 0.07790
Los Angeles County 0.35644 0.35599 0.35569 0.35538 0.35524 0.35421 0.35421 0.35250
Citrus Community College District - - 0.02585 0.01763 0.00356 0.01611 0.02460 0.01027
Metropolitan Water District 0.04937 0.04737 0.04537 0.04537 0.04537 0.02540 0.06178 0.05880
Other 0.00098 0.00098 0.00098 0.00098 0.00098 0.00098 0.00098 0.00098
Total Tax Rate 1.12930$ 1.11214$ 1.13036$ 1.11104$ 1.10323$ 1.09653$ 1.07845$ 1.08107$
The City of Azusa has elected to show only eight years of data for this schedule.
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
Source: L.A. County Assessor Tax Rate Table Area 02045
CITY OF AZUSA
Table 12 - Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Eight Fiscal Years
This 1.00% is shared by all taxing agencies for which the subject property resides within. In
addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of
assessed property values for the payment of any voter approved bonds.
Fiscal Year
General fund tax rates are representative and based upon the direct and overlapping rates for the
largest General Fund tax rate area by net taxable value.
Total Direct Rate is the weighted average of all individual direct rates applied by the City. The Direct
Rate percentages presented in the columns above is not the sum of the General City Rate and the
Redevelopment Agency Rate (RDA).
RDA rate is based on the largest RDA tax rate area and includes only rates from indebtedness
adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied
only to the incremental property values.
141
2007 2008 2009 2010
Percentage of Percentage of Percentage of Percentage of
Total City Total City Total City City
Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed Assessed Assessed Assessed Assessed
Taxpayer:Value Value Value Value Value Value Value Value
Northrop Grumman Systems Corporation 1,055,926$ 10.12% 560,313$ 5.37% 114,062,074$ 3.21% 114,488,946$ 3.23%
PPF Industrial 823 8th Street 282,146 2.71% 285,367 2.74% 29,848,059 0.84% 30,445,016 0.86%
Azusa Land Partners LLC 236,983 2.27% 172,815 1.66% 133,156,469 3.75% 118,997,008 3.35%
Costco Wholesale Corporation 148,882 1.43% 148,440 1.42%- 0.00%- 0.00%
Criterion Catalyst Company Limited Partnership 146,891 1.41% 156,137 1.50% 19,529,854 0.55% 21,134,639 0.60%
Azusa Pacific University 137,759 1.32% 298,194 2.86% 104,553,775 2.94% 215,208,344 6.06%
1303 Optical Drive LLC 130,052 1.25%0.00%- 0.00%- 0.00%
Reichhold Inc 114,975 1.10% 106,124 1.02%- 0.00%- 0.00%
S & S Foods LLC 104,168 1.00% 116,735 1.12% 19,052,371 0.54% 19,686,748 0.55%
Soon Choe Kae 95,109 0.91% 96,437 0.92%- 0.00%- 0.00%
SC Azusa Industrial Center Corp - 0.00% - 0.00%- 0.00%- 0.00%
Exchange El Segundo - 0.00% - 0.00%- 0.00%- 0.00%
Colony Park Azusa LLC - 0.00% - 0.00%- 0.00%- 0.00%
Ontario Vogel - 0.00% 106,244 1.02%- 0.00%- 0.00%
Coastal Pacific Glen LLC - 0.00% - 0.00%- 0.00%- 0.00%
RC Properties VI LLC 53,765,753 1.51%- 0.00%
Rainbird Corp/CA Div.44,525,024 1.25% 44,813,606 1.26%
PLC Mapleton LLC 21,964,048 0.62%- 0.00%
William Lyon Homes Inc 20,769,689 0.58% 21,157,233 0.60%
Cityview Citrus Crossing 26,891,782 0.76%
VPM Soldano Senior Village LP 19,119,483 0.54%
2,452,891$ 23.52% 2,046,807$ 19.63% 561,227,116$ 15.80% 631,942,805$ 17.81%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, Los Angeles County Assessor
Information is not available for all years
City of Azusa
Table 13 - Principal Property Tax Payers
Last Four Fiscal Years
142
Amount
Taxes collected Collections Percent
Fiscal Year Levied within the Percent in Total of
Ended for the Fiscal Year of Subsequent Collections Levy
June 30 Fiscal Year of Levy Levy Years to Date to Date
2003 2,013,405$ 1,895,002$ 94.1% 13,400$ 1,908,402$ 94.8%
2004 2,133,628 2,112,528 99.0% (17,965) 2,094,563 98.2%
2005 2,335,339 2,246,565 96.2% 37,397 2,283,962 97.8%
2006 2,729,217 2,531,014 92.7% 91,595 2,622,609 96.1%
2007 3,236,313 2,944,985 91.0% (7,502) 2,937,483 90.8%
2008 3,569,732 3,200,874 89.7% (20,189) 3,180,685 89.1%
2009 3,841,664 3,519,967 91.6% (3,643) 3,516,324 91.5%
2010 3,815,354 3,622,701 95.0% (29,760) 3,592,941 94.2%
The City of Azusa has elected to show only eight years of data for this schedule.
Source: County of Los Angeles Auditor-Controller and
City of Azusa Administrative Services Finance Department
Table 14 - Property Tax Levies and Collections
CITY OF AZUSA
Last Eight Fiscal Years
143
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Fiscal Year Certificates Tax Percentage Debt per
Ended of Allocation of Assessed City
June 30 Participation Bonds Total Values Capita
2003 4,565,000$ 16,285,000$ 20,850,000$ 1.06% 442
2004 4,825,000 17,080,000 21,905,000 1.01% 455
2005 4,525,000 25,366,416 29,891,416 1.30% 616
2006 4,325,000 24,824,506 29,149,506 1.13% 603
2007 4,120,000 24,271,206 28,391,206 0.88% 584
2008 3,910,000 39,546,698 43,456,698 0.71% 892
2009 3,695,000 57,056,201 60,751,201 1.00% 1,242
2010 3,480,000 55,814,889 59,294,889 1.07% 1,205
The City of Azusa has elected to show only eight years of data for this schedule.
Source: City of Azusa Administrative Services Finance Department
CITY OF AZUSA
Table 16 - Ratio of General Bonded Debt Outstanding
Last Eight Fiscal Years
145
Percentage Net
Gross Bonded Applicable Bonded
Debt Balance To City Debt
APFA 2003 Lease Revenue COP 3,480,000$ 100 3,480,000$
Pension Bonds 6,735,000 100 6,735,000
Total Direct Debt 10,215,000
Metropolitan Water District 121,475,156$ 0.128 156,049$
Citrus CCD DS 2004 Series 2004A 15,685,000 16.919 2,653,692
Citrus CCD DS 2004 Series 2007B 37,140,000 16.919 6,283,590
Citrus CCD DS 2004 2009 Series C 29,995,302 16.919 5,074,803
Mount San Antonio Community College District 2001 Series A 2,250,000 0.025 555
Mount San Antonio Community College District Series B 2004 9,870,000 0.025 2,434
Mount San Antonio Community College District 05 Ref BD 61,525,873 0.025 15,170
Mount San Antonio Community College District 01Series C 2006 79,695,008 0.025 19,650
Mount San Antonio Community College DS 2001, 2008 Series D 25,430,293 0.025 6,270
Azusa Unified School District 2002 Bonds 24,868,763 65.695 16,337,426
Azusa Unified School District 2002 Series 2007 45,001,000 65.791 29,606,520
Covina Valley Unified School District 2001 Series A 15,055,000 0.234 35,263
Covina Valley Unified School District 2001 Series B 22,504,403 0.234 52,712
Covina Valley Unified School District 2006 Series 2006 45,290,000 0.234 106,083
Covina Valley Unified School District 2006,2007 Series B 18,083,829 0.234 42,358
Duarte Unified School District 1998 Series A 2,755,000 0.638 17,585
Duarte Unified School District 1998 Series B 6,759,941 0.638 43,148
Duarte Unified School District 1998 Series C 5,486,231 0.638 35,018
Duarte Unified School District 1998 Series D 6,119,534 0.638 39,060
Duarte Unified School District 1998 Series E 13,967,314 0.638 89,152
Total Overlapping Debt 60,616,538
Total Direct and Overlapping Debt 70,831,538$
2009/2010 Assessed Valuation: $2,755,357,215 after deducting $793,329,785 Redevelopment Increment
Debt to Assess Valuation Ratios:Direct Debt 0.370%
Overlapping Debt 2.200%
Total Debt 2.570%
Source: HdL Coren & Cone, Los Angeles County Assessor and Auditor Combined 2009/2010 Lien Date Tax Rolls
City of Azusa
Table 17 - Direct and Overlapping Debt
June 30, 2010
146
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010
Assessed valuation 1,346,347,987$ 1,495,842,787$1,564,867,008$ 1,782,378,184$ 2,375,554,778$ 2,588,959,025$ 2,548,482,077$ 2,292,870,440$
Conversion percentage 25%25%25%25%25%25%25%25%
Adjusted assessed valuation 336,586,997 373,960,697 391,216,752 445,594,546 593,888,695 647,239,756 637,120,519 573,217,610
Debt limit percentage 15%15%15%15%15%15%15%15%
Legal debt limit 50,488,050 56,094,105 58,682,513 66,839,182 89,083,304 97,085,963 95,568,078 85,982,642
Amount of debt applicable to debt limit (1)--------
Legal debt margin 50,488,050 56,094,105 58,682,513 66,839,182 89,083,304 97,085,963 95,568,078 85,982,642
The City of Azusa has elected to show eight years of data for this schedule.
)
Source: City of Azusa - Administrative Services-Finance Department
City of Azusa
Table 18 - Legal Debt Margin Information
Last Eight Fiscal Years
Total Bonded debt issued by the City, excluding certificates of participation, tax
allocation bonds, special assignment bonds, revenue bonds payable from
enterprise funds, and pledge mortgage revenues and revenue bonds issued by
entities other than the City of Azusa.
147
Operating Debt Service Requirements
Fiscal Year and Non- Net Revenue
Ended Gross Operating Available for
June 30 Revenues Expenses (1)Debt Service Principal Interest Total Coverage
2003 15,602,305$ 10,961,843$ 4,640,462$ 515,000$ 1,614,564$ 2,129,564$ 2.18
2004 17,715,988 9,423,801 8,292,187 540,000 1,531,778 2,071,778 4.00
2005 17,588,585 10,122,373 7,466,212 840,000 806,809 1,646,809 4.53
2006 16,775,847 9,570,814 7,205,033 735,000 801,758 1,536,758 4.69
2007 21,229,600 11,935,540 9,294,060 750,000 794,258 1,544,258 6.02
2008 19,684,086 13,445,606 6,238,480 765,000 3,549,732 4,314,732 1.45
2009 16,279,742 12,229,332 4,050,410 790,000 3,444,146 4,234,146 0.96
2010 21,217,829 12,675,670 8,542,159 1,095,000 3,412,433 4,507,433 1.90
Operating Debt Service Requirements
Fiscal Year and Non- Net Revenue
Ended Gross Operating Available for
June 30 Revenues Expenses (1)Debt Service Principal Interest Total Coverage
2003 -$ -$ -$ -$ -$ -$ -
2004 - - - - - - -
2005 37,948,961 33,131,762 4,817,199 345,000 165,954 510,954 9.43
2006 39,512,551 37,582,546 1,930,005 400,000 101,658 501,658 3.85
2007 37,677,098 33,024,487 4,652,611 410,000 562,810 972,810 4.78
2008 39,265,400 37,135,024 2,130,376 425,000 527,038 952,038 2.24
2009 36,672,695 35,243,846 1,428,849 435,000 504,544 939,544 1.52
2010 37,562,799 38,114,209 (551,410) 455,000 481,021 936,021 (0.59)
(1)Excludes interest and depreciation expense
(2)Established December 18, 2003
Source: City of Azusa Administrative Services-Finance Department
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage
Last Seven Fiscal Years
CERTIFICATES OF PARTICIPATION - WATER FUND
CERTIFICATES OF PARTICIPATION - ELECTRIC FUND (2)
148
Operating Debt Service Requirements
Fiscal Year and Non- Net Revenue
Ended Gross Operating Available for
June 30 Revenues Expenses (1)Debt Service Principal Interest Total Coverage
2003 1,272,688$ 455,459$ 817,229$ 75,000$ 160,120$ 235,120$ 3.48
2004 1,374,622 634,547 740,075 80,000 45,279 125,279 5.91
2005 1,375,200 629,347 745,853 85,000 166,954 251,954 2.96
2006 1,523,761 822,814 700,947 80,000 101,658 181,658 3.86
2007 1,586,403 1,141,303 445,100 85,000 139,604 224,604 1.98
2008 1,671,968 1,195,146 476,822 95,000 123,547 218,547 2.18
2009 1,636,336 1,518,931 117,405 100,000 120,611 220,611 0.53
2010 1,642,481 1,545,220 97,261 105,000 123,892 228,892 0.42
(1)Excludes interest and depreciation expense
Source: City of Azusa Administrative Services-Finance Department
REVENUE BONDS - SEWER FUND
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage (continued)
Last Seven Fiscal Years
149
Debt Service Requirements
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Total Coverage
2003 5,641,059$ 385,000$ 1,005,526$ 1,390,526$ 4.06
2004 (1)6,191,593 175,000 1,020,508 1,195,508 5.18
2005 (2)6,352,305 765,000 691,636 1,456,636 4.36
2006 6,895,119 610,000 1,068,422 1,678,422 4.11
2007 7,544,968 625,000 1,005,250 1,630,250 4.63
2008 (3)7,556,563 435,000 812,271 1,247,271 6.06
2009 7,934,351 865,000 2,184,552 3,049,552 2.60
2010 7,981,654 1,325,000 3,224,999 4,549,999 1.75
The City of Azusa has elected to show only eight years of data for this schedule.
(1)$11,580,000 2003 Bonds were issued to refund the $10,610,000 1994 Bonds.
(2)
(3)
(4)
Source: City of Azusa Administrative Services-Finance Department
Redevelopment agency issued new Tax Allocation Bonds $6,715,000 Series A,
$11,580000 Series B (Housing).
Redevelopment agency issued new Tax Allocation Bonds $15,780,000 Series A,
$4,790,000 Series B. A portion of the new debt repaid the 1997 Tax Allocation
Refunding Bonds ($4,935,000).
Redevelopment Agency issued $9,022,800 of new Tax Allocation Bonds in 2005.
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage
Tax Allocation Bonds - Redevelopment Agency
Last Eight Fiscal Years
150
Fiscal Year Per Capita
Ended City County Personal Personal Unemployment
June 30 Population (1)Population (1)Income Income
(3)Rate (4)
2003 47,150$ 9,979,600$ 1,482,961,800$ 31,452$ 7.3%
2004 48,183 10,107,451 1,598,663,757 33,179 7.0%
2005 48,520 10,226,506 (2)(2)5.5%
2006 48,302 10,245,572 (2)(2)5.9%
2007 48,640 10,331,939 (2)15,609 5.4%
2008 48,743 10,363,850 (2)37,088 8.5%
2009 48,932 10,393,185 (2)(2)13.8%
2010 49,207 10,441,080 (2)(2)14.50%
The City of Azusa has elected to show only eight years of data for this schedule.
Sources: (1) U.S. Department of Census and State Department of Finance
(2) Information not available
(3) Labor Market Info-County, CA Employment Development Department
(4) State Employment Development Department
CITY OF AZUSA
Table 21 - Demographic and Economic Statistics
Last Eight Fiscal Years
151
2010 (2)2009 2008 2007
(1)
Number of % of City Number of Number of Number of
Employer Employees Employment Employees Employees Employees
1. Azusa Unified School District 1,064 6.72% 1,600 1,600 1,600
2. Northrop Grumman 1,300 8.21% 1,100 1,100 1,100
3. Azusa Pacific University 1,200 7.58% 900 900 900
4. City of Azusa 409 2.58% 522 522 522
5. Costco (formerly Price/Costco)265 1.67% 311 311 311
6. Berger Bros.- 0.00% 300 300 300
7. Pacific Precision Metals - 0.00% 250 250 250
8. Tru Wood Products - 0.00% 160 160 160
9. Wynn Oil Company - 0.00% 150 150 150
10. Rain bird - 0.00% 132 132 132
11. California Amforge 150 0.95% 106 106 106
12. Vulcan - 0.00% 100 100 100
13. Naked Juice - 0.00% 75 75 75
14. Morris National Candy - 0.00% 70 70 70
15. Physician's Formula 167 1.06% 70 70 70
16. Heppner Hardwood - 0.00% 63 63 -
17. Trek Industries - 0.00% 37 37 -
18. Cee-Jay Research and Sales 250 1.58%- - -
19. Monrovia Nursery 671 4.24%- - 700
20. ABCO Insulation 200 1.26%- - -
21. Andre Landscape Services 121 0.76%- - -
22. Wynn's 120 0.76%- - -
23. Artisan Screen 100 0.63%- - -
24. Gale Banks Engineering 160 1.01%- - -
25. Stanley Steemer Carpet Cleaner 150 0.95%- - -
26. Buena Vista Food Products 122 0.77%- - -
27. Astro Company 100 0.63%- - -
28. Alliance Environmental Group 200 1.26%- - -
29. Magparts 175 1.11%- - -
Total of Top Employers 6,924 43.75%
Total Employees in City 15,826
(1)Azusa Chamber of Commerce website
(2)HdL Coren & Cone, Info Group
City of Azusa
Table 22 - Principal Employers
Last Four Fiscal Years
152
by Function
Function 2003 2004 2005 2006 2007 2008 2009 2010
General government 77.835 77.434 A 56.665 59.619 59.682 61.144 67.794 66.638
Public safety 96.538 94.663 93.406 91.978 93.800 96.530 99.035 98.945
Community development 18.765 19.181 17.225 13.502 14.927 15.441 15.985 16.376
Parks and recreation 45.619 B 31.684 C 42.376 39.480 38.723 31.765 34.204 37.929
Public works 25.180 27.930 25.845 D 20.800 21.884 23.132 31.115 31.115
Water 41.670 37.420 37.610 39.220 36.425 36.350 44.425 44.025
Electric 31.130 29.380 28.490 30.280 31.425 32.350 36.125 37.725
Sewer/Wastewater 4.320 3.820 4.080 6.250 6.000 6.000 10.000 10.250
Total 341.057 321.512 305.697 301.129 302.866 302.712 338.683 343.003
A Reduction in Library Services 3.22;Transfer Transit to Public Works 10.55
B Reduction in Recreation by 13.526
C Increase due to transfer Parks to Recreation 9.87
D Reduction in Roadway Maint.1.20;Sidewalk Maint. 1.00;Graffitti Removal .875
Source: City of Azusa Administrative Services-Finance Department
Assigned Full-Time Equivalent (FTE) Totals
City of Azusa
Table 23 - Full-time and Part-time Employees
Last Eight Fiscal Years
Fiscal Year
153
2003 2004 2005 2006 2007 2008 2009 2010
Police:
Calls for service 53,323 52,584 49,797 51,353 52,000 56,166 56,610 54,896
Parking citations issued (1)4,249 4,053 4,136 4,691 4,833 9,881 9,801
Public Works:
Street resurfacing (lineal miles) 10.2 17.0 15.3 12.8 15 13 14 2.5
Parks and recreation:
Number of recreation classes 78 78 110 84 84 84 196 310
Number of facility rentals 728 907 1,156 1,510 1,497 1,492 706 827
Water:
Number of service connections 19,265 19,475 19,580 15,910 (2)15,824 (2)15,871 (2)15,935 (2)15,950 (2)
Average daily consumption 24,705 28,670 29,435 25,067 27,319 23,296 22,832 21,517
(hundred cubic feet)
Light:
Number of service connections 15,170 15,445 15,530 15,358 15,531 15,650 15,403 15,276
(2)
Average daily consumption 640,525 674,175 727,437 707,965 700,167 691,070 69,347 67,292
(kWh)
Sewer:
Number of service connections 15,800 16,007 16,072 14,183 (2)14,344 (2)14,402 (2)14,073 (2)14,335 (2)
Refuse:
Number of residential customers 13,532 13,735 13,812 11,206 (2)11,296 (2)12,053 (2)11,127 (2)11,254 (2)
Average daily collection 147 151 157 158 109 114 122 184
(thousands of pounds)
(1)Information not available
(2)Starting in FY 2006 reported number of accounts not units as in prior periods
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
CITY OF AZUSA
Table 24 - Operating Indicators by Function
Last Eight Fiscal Years
Fiscal Year
154
2003 2004 2005 2006 2007 2008 2009 2010
Police:
Stations 1 1 1 1 1 1 1 1
Public Works:
Streets (lineal miles)170 170 170 170 170 170 170 171
Traffic signals 52 52 52 52 52 52 52 53
Parks and recreation:
Parks 10 10 10 10 10 13 13 13
Park acreage 52 52 55 58 58 60 61 61
Community centers 1 1 2 2 2 3 3 3
Water:
Water mains (miles)302 302 302 305 308 311 312 315
Number of fire hydrant 2,475 2,475 2,500 2,525 2,575 2,585 2,594 2,594
Maximum daily capacity 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
(hundred cubic feets)
Light:
Streetlights 42 66 65 64 65 65 65 65
Maximum daily consumption 143 170 171 153 169 169 169 169
(kWh)
Sewer:
Sanitary sewers (miles)60 60 61 61 61 61 61 61
Storm sewers (miles)15 15 15 15 15 15 15 15
Maximum daily treatment capacity 48 48 48 48 48 48 48 48
(cubic feet per second)
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
Fiscal Year
CITY OF AZUSA
Table 25 - Capital Asset Statistics by Function
Last Eight Fiscal Years
155
Alan Kreimeier General Overview
Director of Administrative Services/CFO Letter of Transmittal
Management's Discussion and Analysis
Joan Michaels Aguilar
Controller General Overview
Overall Coordination
Dave Nguyen Enterprise Funds
Senior Accountant Internal Service Fund-Consumer Service
Capital Projects Funds
Redevelopment Agency
Henry Quintero General Fund
Senior Accountant Fixed Assets Accounting
Grants Funds (Single Audit)
Statistical Section
Roseanna Jara
Senior Accountant (RDA)Redevelopment Agency
Public Financing Authority
Esther Grijalva
Accountant Internal Service Funds (except
Consumer Service)
Special Revenue Funds
Fiduciary Fund
Susan Paragas Redevelopment Agency
Budget Analyst Public Financing Authority
Special Revenue Funds as assigned
Charts
Lisa Rogers
Account Specialist II Statistical Section
CITY OF AZUSA
Table 26 - Schedule of Credits
June 30, 2010
156