HomeMy WebLinkAboutAzusa CAFR 11CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
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CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
PREPARED BY FINANCE DEPARTMENT
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
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 ....................................................................................................... 21
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
Budgetary Comparison Statement – Low and Moderate Housing ................................................. 26
Statement of Net Assets - Proprietary Funds ................................................................................. 27
Statement of Revenues, Expenses and Changes in Fund Net
Assets - Proprietary Funds ............................................................................................................. 29
Statement of Cash Flows - Proprietary Funds ............................................................................... 30
Statement of Fiduciary Net Assets - Fiduciary Funds .................................................................... 32
Notes to Financial Statements ........................................................................................................... 33
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ............................................................ 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 80
Budgetary Comparison Schedules - Special Revenue Funds:
State Gasoline Tax ......................................................................................................................... 86
Proposition A .................................................................................................................................. 87
Proposition C .................................................................................................................................. 88
Community Development Block Grant ........................................................................................... 89
Senior Nutrition ............................................................................................................................... 90
Public Benefit Program ................................................................................................................... 91
Air Quality Improvement ................................................................................................................. 92
Grants and Seizure ......................................................................................................................... 93
Supplemental Law Enforcement ..................................................................................................... 94
Fire Safety ...................................................................................................................................... 95
Monrovia Nursery ........................................................................................................................... 96
Employee Benefits .......................................................................................................................... 97
Utility Mitigation ............................................................................................................................... 98
Highway 39 ..................................................................................................................................... 99
LACMTA ....................................................................................................................................... 100
Measure R .................................................................................................................................... 101
AB939 Fee .................................................................................................................................... 102
Budgetary Comparison Schedules - Capital Projects Funds:
Park In-Lieu .................................................................................................................................. 103
Public Works Endowment ............................................................................................................. 104
Redevelopment Agency ............................................................................................................... 105
Budgetary Comparison Schedules - Debt Service Fund:
Public Financing Authority ............................................................................................................ 106
Redevelopment Agency ............................................................................................................... 107
Combining Statement of Net Assets – Nonmajor Proprietary Funds .............................................. 108
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets – Nonmajor Proprietary Funds ............................................................................. 109
Combining Statement of Cash Flows – Nonmajor Proprietary Funds ............................................. 110
Combining Statement of Net Assets – Internal Service Funds ....................................................... 112
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
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 ................................................................................... 114
Combining Statement of Cash Flows – Internal Service Funds ................................................... 116
Combining Statement of Changes in Assets and Liabilities – Agency Fund ............................... 118
Supplemental Statement of Revenues, Expenses and Changes in
Net Assets – Water – Enterprise Fund ......................................................................................... 119
Supplemental Statement of Revenues, Expenses and Changes in
Net Assets – Light – Enterprise Fund ........................................................................................... 120
STATISTICAL SECTION
Table 1 – Net Assets by Component ............................................................................................ 123
Table 2 – Change in Net Assets ................................................................................................... 124
Table 3 – Fund Balances of Governmental Funds ....................................................................... 126
Table 4 – Changes in Fund Balances of Governmental Funds ................................................... 127
Table 5 – Light Department, Electricity Sold by Type of Customer .............................................. 128
Table 6 – Electricity Rates ............................................................................................................ 129
Table 7 – Largest Electrical Customers ....................................................................................... 130
Table 8 – Water Sold by Type of Customer ................................................................................. 131
Table 9 – Water Rates .................................................................................................................. 132
Table 10 – Largest Water Customers .......................................................................................... 133
Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................ 134
Table 12 – Direct and Overlapping Property Rates ...................................................................... 135
Table 13 – Principal Property Tax Payers .................................................................................... 136
Table 14 – Property Tax Levies and Collections .......................................................................... 137
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (CONTINUED)
Table 15 – Ratios of Outstanding Debt by Type .......................................................................... 138
Table 16 – Ratio of General Bonded Debt Outstanding ............................................................... 139
Table 17 – Direct and Overlapping Debt ...................................................................................... 140
Table 18 – Legal Debt Margin Information ................................................................................... 141
Table 19 – Pledged Revenue Coverage ...................................................................................... 142
Table 20 – Pledged Revenue Coverage,
Tax Allocation Bonds – Redevelopment Agency ....................................................... 144
Table 21 – Demographic and Economic Statistics ....................................................................... 145
Table 22 – Principal Employers .................................................................................................... 146
Table 23 – Full-time and Part-time Employees by Function ........................................................ 147
Table 24 – Operating Indicators by Function ............................................................................... 148
Table 25 – Capital Asset Statistics by Function ........................................................................... 149
Table 26 – Schedule of Credits .................................................................................................... 150
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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, 2013
Keith Hanks Mayor Pro-Tem March, 2013
Angel Carrillo Councilmember March, 2015
Robert Gonzales Councilmember March, 2013
Uriel Macias Councilmember March, 2015
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
Daryl L. Osby Chief/Fire 626-974-8371
City Attorney Best, Best, & Krieger (Sonia Carvalho) 949-263-2603
vi
vii
THIS PAGE INTENTIONALLY LEFT BLANK
viii
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of 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 City of Azusa, California, (the
City) as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of City'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 the 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 opinion.
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, as of June 30, 2011, and the respective
changes in financial position, and cash flows, where applicable, and the respective budgetary comparison
for General Fund and the Low and Moderate Income Housing Special Revenue Fund for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
We would like to draw the reader’s attention to Note 19 – “California Redevelopment Agency
Dissolution”. The note provides information on two bills passed, ABX1 26 and ABX1 27 which dissolve
redevelopment agencies and provide an option to avoid dissolution by making certain defined payments.
The Note also provides further information on the California Supreme Court ruling dated
December 29, 2011 in regards to these two bills.
In accordance with Government Auditing Standards, we have also issued our report dated
December 27, 2011, on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is 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 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.
Lance, Soll & Lunghard, LLP .ORTH "REA "OULEVARD s 3UITE s "REA #! s 4%, s &AX www.lslcpas.com
Orange County Temecula Valley Silicon Valley
"RANDON 7 "URROWS #0!
$AVID % (ALE #0! #&0
A Professional Corporation
$ONALD ' 3LATER #0!
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"RYAN 3 'RUBER #0!
$EBORAH ! (ARPER #0!
Honorable Mayor and Members of City Council
City of Azusa
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole. The introductory section, combining and individual
nonmajor fund financial statements, and statistical section, are presented for purposes of additional
analysis and are not a required part of the financial statements. The combining and individual nonmajor
fund financial statements are the responsibility of management and were derived from and relate directly
to the underlying accounting and other records used to prepare the financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the information is fairly stated in all material respects in
relation to the financial statements as a whole. The introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
Brea, California
December 27, 2011 (except for Note 19 which is as of December 29, 2011)
2
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
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, 2011. 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 $127,027,605 (net
assets).
Total City assets of $309,924,813 include $165,623,110 or 53% of non-current assets attributed to
capital assets, net of depreciation.
Total City liabilities of $182,897,208 include $169,303,034 or 93% of long-term liabilities attributed
mainly to tax allocation bonds and certificates of participation.
As of June 30, 2011, the City’s governmental funds reported combined fund balances of $21,869,071.
At the end of the current fiscal year, the total fund balance for the General Fund was increased by
$6,698,912 to $16,303,959.
Total General Fund revenues received for the year were $31,960,738 and total General Fund
expenditures for the year were $30,462,297, an excess of revenues over expenditures amounting to
$1,498,441. 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, 2011
Both of the government-wide financial statements distinguish functions of the City of Azusa that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include General Government,
Public Safety, Community Development, Parks and Recreation, and Public Works. The business-type
activity of the City includes the City’s Water, Light, Sewer/Wastewater, and Refuse Contract Utility
operations.
The government-wide financial statements include not only the City of Azusa itself (known as the primary
government), but also the legally separate City of Azusa Redevelopment Agency and the Azusa Public
Financing Authority for which the City of Azusa is financially accountable. Financial information for these
component units has been included as an integral part of the primary government. Separate financial
statements are prepared for the City of Azusa Redevelopment Agency and may be obtained from the
City’s Administrative Services-Finance Division.
2) Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Azusa, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Azusa maintains 23 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, the Redevelopment Agency Capital Projects Fund and
the Redevelopment Agency Debt Service Fund, all of which are considered to be major funds. Data from
the other 20 governmental funds are combined into a single, aggregate presentation. Individual fund data
for each of these non-major governmental funds is provided in the form of combining statements
elsewhere in this report.
The City of Azusa adopts an annual appropriated budget for each of its governmental funds. A budgetary
comparison statement has been provided for the General Fund and all Special Revenue Funds, Capital
Project Funds, and Debt Service Funds to demonstrate compliance with this budget.
Proprietary funds. The City of Azusa maintains two different types of proprietary funds, enterprise and
internal service funds. Enterprise funds are used to report the same functions presented as business
type activities in the government-wide financial statements. The City uses an enterprise fund to account
for its Water, Light, Sewer/Wastewater and Refuse Contract Utilities. Internal service funds are an
accounting device used to accumulate and allocate costs 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
4
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
services predominantly benefit governmental rather than business type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements
(business type activities), only in more detail. Information is presented separately in the proprietary fund
statement of net assets and in the proprietary fund statement of revenues, expenditures, and changes in
net assets for the Water and Light funds. The Water and Light funds are considered to be major funds.
The internal service funds are also presented in the proprietary fund financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government, and the City’s role is purely custodial. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not available to support
the City’s own programs. All assets reported in Fiduciary funds are offset by a liability; the accrual basis
of accounting is used to recognize receivables and payables.
3) Notes to the basic financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
Other supplementary information. The combining financial statements and schedules referred to
earlier in connection with non-major governmental funds and internal service funds are presented
immediately following the notes to the basic financial statements.
Government-wide Financial Analysis
The following table presents a summary of the City’s assets, liabilities and net assets for its governmental
and business type activities. As noted earlier, a government’s net asset position may serve over time as
a useful indicator of its financial position.
2011 2010 2011 2010 2011 2010
Current and other assets 61,355,492$ 66,536,404$ 82,946,211$ 82,385,901$ 144,301,703$ 148,922,305$
Capital assets, net 32,156,047 31,571,895 133,467,063 137,722,582 165,623,110 169,294,477
Total assets 93,511,539 98,108,299 216,413,274 220,108,483 309,924,813 318,216,782
Current liabilities 4,886,460 5,328,887 8,707,714 8,864,869 13,594,174 14,193,756
Long-term liabilities 84,997,930 84,719,663 84,305,104 86,168,187 169,303,034 170,887,850
Total liabilities 89,884,390 90,048,550 93,012,818 95,033,056 182,897,208 185,081,606
Net assets:
Invested in capital assets,
net of related debt 19,297,862 19,372,237 35,160,311 58,696,499 54,458,173 78,068,736
Restricted 35,312,033 55,734,821 3,192,561 5,069,361 38,504,594 60,804,182
Unrestricted (50,982,746) (67,047,309) 85,047,584 61,309,567 34,064,838 (5,737,742)
Total net assets 3,627,149$ 8,059,749$ 123,400,456$ 125,075,427$ 127,027,605$ 133,135,176$
Total
City of Azusa - Summary of Net Assets
Governmental
Activities
Business Type
Activities
As of June 30, 2011, the City’s assets exceeded liabilities by $127,027,605. 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
5
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
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 net asset decrease for the Water Fund $(1,563,516) and a net
increase for the Electric Fund $57,121.
In evaluating the net assets for both governmental and business-type activities in the City of Azusa,
$54,458,173 (53%) denotes net assets invested in capital assets (net of related debt) and $38,504,594
(30%) represents resources that are subject to external restrictions. The remaining balance represents
unrestricted net assets of $34,064,838 (27%).
The following chart shows the comparison of the three components of net assets for Fiscal Years 2010-
11 and 2009-10 (in millions)
0.0
40.0
80.0
120.0
160.0
FY 09/10 $78.1 $60.8 $(5.7) $133.1
FY 10/11 $54.5 $38.5 $34.0 $127.0
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, 2011 shows total net assets equal $3,627,149, a decrease of
$4,432,600 (55%) from the prior year. The primary decreases are due to reductions in cash and
investments ($3,632,352). 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 $123,400,456, a decrease of
$1,674,971 (1.3%) from the prior year. Key elements of the decrease in net assets are higher energy
costs within the Light Fund and a reduction in service demand due to the sluggish economy.
6
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
2011 2010 2011 2010 2011 2010
Program Revenues:
Charges for services 7,847,584$ 7,838,471$ 61,647,937$ 60,276,531$ 69,495,521$ 68,115,002$
Operating contributions
and grants 3,651,491 3,261,472 - - 3,651,491 3,261,472
Capital contributions
and grants 109,226 654,467 - - 109,226 654,467
General Revenues:
Taxes 31,863,145 26,536,510 571,036 555,121 32,434,181 27,091,631
Motor Vehicle In Lieu 143,401 137,557 - - 143,401 137,557
Investment Earnings 2,540,133 2,914,790 1,626,291 1,753,061 4,166,424 4,667,851
Gain on Sale of Assets - - 1,350 2,306 1,350 2,306
Miscellaneous 854,945 441,956 358,891 1,336,168 1,213,836 1,778,124
Total Revenues 47,009,925 41,785,223 64,205,505 63,923,187 111,215,430 105,708,410
Expenses:
General Government 12,198,991 16,368,337 - - 12,198,991 16,368,337
Public Safety 20,187,914 19,458,795 - - 20,187,914 19,458,795
Community Development 3,472,237 4,041,516 - - 3,472,237 4,041,516
Parks and Recreation 4,184,626 3,950,786 - - 4,184,626 3,950,786
Public Works 5,539,866 4,688,537 - - 5,539,866 4,688,537
Interest and Fiscal Charges 7,380,598 7,274,723 - - 7,380,598 7,274,723
Water - - 19,680,719 19,114,843 19,680,719 19,114,843
Light - - 40,083,680 39,715,805 40,083,680 39,715,805
Sewer/Wastewater - - 1,982,241 1,986,142 1,982,241 1,986,142
Refuse Contract - - 2,962,395 2,924,303 2,962,395 2,924,303
Total Expenses 52,964,232 55,782,694 64,709,035 63,741,093 117,673,267 119,523,787
Increase (decrease) in net assets
before transfers (5,954,307) (13,997,471) (503,530) 182,094 (6,457,837) (13,815,377)
Transfers 1,326,374 1,386,380 (1,326,374) (1,386,380) - -
Change in Net Assets (4,627,933) (12,611,091) (1,829,904) (1,204,286) (6,457,837) (13,815,377)
Net Assets (Deficits) - Beginning 8,059,749 20,686,300 125,075,427 126,642,608 133,135,176 147,328,908
Restatement of Net Assets 195,333 (15,460) 154,933 (362,895) 350,266 (378,355)
Net Assets (Deficits) - Ending 3,627,149$ 8,059,749$ 123,400,456$ 125,075,427$ 127,027,605$ 133,135,176$
Activities Activities Total
City of Azusa - Summary of Changes in Net Assets (Deficits)
Governmental Business Type
The City’s total revenues are $111,215,430 and the costs of all programs and services are $117,673,267.
Fiscal year 2010-11 revenues increased by $5,507,020 (5%). Expenses decreased by $1,850,520 (-2%)
from prior year with increases in business-type activities. Key factors include:
The increase in Taxes in the governmental activities consisted of a one-time collection for land
excavation and an increase in sales tax of 18.3% was primarily due to the opening of a Target
store. The City experienced a rise in Franchise Fees and Utility User Tax related to the increase
in Electric Sales.
The increase in the City’s total revenues was also attributable to an 11% increase in Electric
sales and service charges primarily due to a combination of a rise in usage and rates. However,
the net increase in the business-type activities was only 0.26%. A 14% decrease in Water
operating revenues was mostly due to the effectiveness of the drought control restrictions placed
on the users.
7
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
Revenues by Source-Governmental Activities
Year Ended June 30, 2011
Investment
earnings/other
7.3%
Motor vehicle in lieu
0.3%Other taxes
6.2%
Utility users taxes
6.8%
Property taxes
26.0%
Business licenses
taxes
3.9%
Franchise taxes
13.3%
Sales taxes
12.2%
Charges for services
16.8%
Contributions &
grants
7.2%
Key elements of this year’s summary of activities are as follows:
Property tax revenue increased by $2,075,176, Sales tax revenue increased by a $961,872 and
Franchise fees increased by $627,114 from the prior year.
Charges for services revenue and investment earnings remained stable.
Operating contributions and grants decreased by $545,241 from the previous year primarily due
to fewer grants for Public Works and a reduction in the Community Development Building Grant
allocation.
8
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
Expense by Activities
Year Ended June 30, 2011
Public works
10.5%
Interest & fiscal
charges
13.9%
General government
23.0%
Public safety
38.1%
Community
development
6.6%
Parks and recreation
7.9%
Total Governmental Activities expenses decreased $2,818,462 (-10.3%) over last year total
Governmental Activities expenses.
Total General Government expenses decreased $4,169,346 (-25.5%) compared to prior year
General Government expenses. The reduction is attributable to a reduction in capital project
expenses in Water.
However, total Public Safety expenditures increased $729,119 (3.7%) primarily due to the rise in
the PERS public safety plan.
Financial Analysis of the City’s Funds
As noted earlier, the City of Azusa uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. This information is useful in assessing the City’s
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government’s net resources available for spending during the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $21,869,071, a decrease of $7,268,812 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 $13,941,945 reserved in capital projects.
9
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2010-11, its fund
balance increased by $6,647,272, primarily as a result of increased revenues realized by the City,
particularly in the taxes category. At the end of the current fiscal year, the General Fund total fund
balance was $16,303,959. A majority of this total is land held for resale as a result of the properties
transferred from the Redevelopment Agency.
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 Special Revenue Fund is used to account for the low to moderate income
housing activities of the Redevelopment Agency. During FY 2011, its fund balance decreased by
$128,907, primarily due to decreased cash and investments. At the end of the current fiscal year, the
total fund balance was $11,927,715. This total consists of land held for resale for future development.
However, as a result of the passage of AB1X26, which dissolve redevelopment agencies, future
developments have been ordered to cease.
The Redevelopment Agency Debt Service Fund is used to account for debt service payments of the
Redevelopment Agency. During FY 2011, its deficit fund balance ($29,732,538) increased $577,339 from
the prior year mainly due to increases in interest and fiscal charges. 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, 2011
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 $84,447,960.
Total unrestricted net assets increased by $23,796,578 (39.2%) and total net assets decreased by
$1,667,492 (-1.3%) from the previous fiscal year.
Unrestricted net assets of the City’s Water Utility at the end of the year amounted to $24,659,431 which is
an increase of $560,437 (2.3%) and total net assets decreased by $1,427,675 (-2.6%) from the previous
fiscal year.
Unrestricted net assets of the City’s Light Utility at the end of the year amounted to $57,562,566. Total
unrestricted net assets decreased by $23,382,717 (68.4%) and total net assets increased by $76,213
(.13%) from the previous fiscal year. The primary source of this increase was due to a reduction in
Invested in Capital Assets of $21,386,493.
The following chart highlights total revenue and total expenses for each of the business type activities for
fiscal year end June 30, 2011.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Revenue $18.6 $40.3 $1.7 $3.6
Expenses $20.2 $40.3 $2.1 $3.5
Water Light Sewer/ Wastewater Refuse Contract
11
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 25,434,880$ 25,434,880$ 24,398,370$ (1,036,510)$
Charges for services 1,226,455 1,302,455 1,645,357 342,902
Assessments 3,239,270 3,239,270 3,098,219 (141,051)
Other revenue 2,690,580 2,692,110 2,818,792 126,682
Total revenue 32,591,185 32,668,715 31,960,738 (707,977)
EXPENDITURES
Operations 28,443,570 28,877,866 29,415,059 (537,193)
Capital Outlay - 59,519 55,640 3,879
Debt Service 1,009,635 1,009,635 991,598 18,037
Total expenditures 29,453,205 29,947,020 30,462,297 (515,277)
Excess of revenues
over expenditures 3,137,980 2,721,695 1,498,441 (192,700)
OTHER FINANCING SOURCES (USES)
Transfers in 1,128,430 1,128,430 10,858,240 9,729,810
Transfers out 4,112,910 4,136,150 5,709,409 (1,573,259)
Total other financing sources (uses)(2,984,480) (3,007,720) 5,148,831 8,156,551
Net change in fund balance 153,500 (286,025) 6,647,272 6,933,297
Fund balance beginning of year 9,656,687 9,656,687 9,656,687
Budgeted Amounts
City of Azusa - General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2011
The difference between the original expenditure budget and the final amended expenditure budget was
an increase of $493,815 with highlights as follows:
General Government saw increased appropriations of $333,005 that included the election costs
for a mining referendum ($51,000), emergency repairs of City facilities, Council approved
homeless voucher program and a rise in bank fees. In addition, with the increase in the building
of new homes in the Rosedale development, an increase in plan check appropriations were
necessary ($76,000).
Public Safety reflects a $91,170 increase primarily due to the increase in personnel costs and
equipment purchases.
Parks and Recreation increased by $69,640 mainly due to increases in utility costs associated
with increases in utility rates.
12
City of Azusa
Management’s Discussion and Analysis
June 30, 2011
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, 2011 amounted to $165,623,110 (net of accumulated depreciation). This investment
includes land, construction in progress, land improvements, buildings and structures, machinery and
equipment, automotive equipment and infrastructure.
2011 2010 2011 2010 2011 2010
Land 1,729,956$ 1,729,956$ 2,988,973$ 2,988,973$ 4,718,929$ 4,718,929$
Construction in Progress 1,145,104 255,955 1,804,845 3,774,100 2,949,949 4,030,055
Land Improvements 2,695,845 2,867,596 577,595 600,987 3,273,440 3,468,583
Buildings and Structures 7,485,628 7,583,474 14,943,016 15,458,454 22,428,644 23,041,928
Machinery and Equipment 1,426,795 1,426,381 3,487,392 4,018,832 4,914,187 5,445,213
Automotive Equipment 1,089,153 1,297,514 574,680 742,681 1,663,833 2,040,195
Infrastructure 16,583,566 16,408,019 109,090,562 110,138,555 125,674,128 126,546,574
Total 32,156,047$ 31,568,895$ 133,467,063$ 137,722,582$ 165,623,110$ 169,291,477$
Activities Activities Total
City of Azusa - Capital Assets
(Net of Accumulated Depreciation)
Governmental Business Type
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
$166,856,873. Of this amount, $85,687,602 is a liability of the Governmental Activities and $81,189,271
is a liability of the Business Type Activities.
2011 2010 2011 2010 2011 2010
Employee Leave Benefits 3,711,136$ 3,542,431$ 1,224,271$ 1,252,806$ 4,935,407$ 4,795,237$
Net OPEB Liability 6,207,671 4,181,823 - - 6,207,671 4,181,823
1994 COPS - - 1,810,000 1,925,000 1,810,000 1,925,000
2003 COPS 3,255,000 3,480,000 23,880,000 25,200,000 27,135,000 28,680,000
2006 Water Revenue Bonds - - 54,275,000 54,570,000 54,275,000 54,570,000
2003 Tax Allocation Bonds 8,355,000 8,815,000 - - 8,355,000 8,815,000
2005 Tax Allocation Bonds 9,518,014 9,429,889 - - 9,518,014 9,429,889
2007 Tax Allocation Bonds 19,230,000 19,700,000 - - 19,230,000 19,700,000
2008 Tax Allocation Bonds 17,665,000 17,870,000 - - 17,665,000 17,870,000
2008 Taxable Pension Fnding Bd 6,180,000 6,735,000 - - 6,180,000 6,735,000
Developer Agreements 9,685,015 9,366,038 - - 9,685,015 9,366,038
Claims and Judgments Payable 1,880,766 2,302,734 - - 1,880,766 2,302,734
Total 85,687,602$ 85,422,915$ 81,189,271$ 82,947,806$ 166,876,873$ 168,370,721$
City of Azusa - Outstanding Debt
Governmental Business Type
Activities Activites Total
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, 2011
Economic Factors and Next Year’s Budgets and Rates
The revenue projections for the 2011-12 General Fund budget reflected a decrease of 1.56% 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, increased by 3.06% for the
2011-12 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
2011-12, the City adopted a balanced budget with a surplus of $193,445 for the General Fund. The
adopted budget presents a financial plan that maintains the required.
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 $513,030 in 2011.
Most importantly, the uncertainty regarding continued existence of the City’s Redevelopment Agency
significantly affected ongoing efforts for new development in the community. Record unemployment
continues to remain a problem with rates within the Los Angeles-Long Beach-Glendale Metropolitan
Division at 12.4% in June 2011. City staff will carefully be monitoring any legislative action that could
impact the financial condition in Azusa.
Request for Information
This financial report is designed to provide a general overview of the financial position of the City of
Azusa for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to
Administrative Services-Finance, 213 E. Foothill Blvd., Azusa, CA 91702.
14
CITY OF AZUSA
STATEMENT OF NET ASSETS
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 17,573,746$ 26,637,933$ 44,211,679$
Receivables:
Accounts 1,120,506 7,790,544 8,911,050
Taxes 2,619,259 - 2,619,259
Notes and loans 3,487,876 81,047 3,568,923
Accrued interest 68,089 87,217 155,306
Internal balances (14,672,282) 14,672,282 -
Prepaid costs 109,702 11,024 120,726
Deposits 465 115,783 116,248
Inventories 141,379 1,526,197 1,667,576
Deferred charges 2,099,516 1,045,041 3,144,557
Land held for resale 36,674,200 8,197,953 44,872,153
Restricted assets:
Cash and investments 30,876 2,681,256 2,712,132
Cash with fiscal agent 4,805,903 10,841,988 15,647,891
Cash held for rate stabilization - 9,257,946 9,257,946
Net pension asset 7,296,257 - 7,296,257
Capital assets not being depreciated 2,875,060 4,793,818 7,668,878
Capital assets, net of depreciation 29,280,987 128,673,245 157,954,232
Total Assets 93,511,539 216,413,274 309,924,813
Liabilities:
JUNE 30, 2011
Primary Government
See Notes to Financial Statements
Liabilities:
Accounts payable 1,790,722 3,753,750 5,544,472
Accrued liabilities 1,258,205 255,412 1,513,617
Accrued interest 1,490,631 1,945,717 3,436,348
Unearned revenue 50,983 - 50,983
Deposits payable 24,500 2,712,557 2,737,057
Due to other governments 271,419 40,278 311,697
Noncurrent liabilities:
Due within one year 5,612,693 2,676,998 8,289,691
Due in more than one year 79,385,237 81,628,106 161,013,343
Total Liabilities 89,884,390 93,012,818 182,897,208
Net Assets:
Invested in capital assets,
net of related debt 19,297,862 35,160,311 54,458,173
Restricted for:
Community development projects 19,438,528 - 19,438,528
Public safety 1,363,182 - 1,363,182
Capital projects 14,027,775 - 14,027,775
Debt service 482,548 3,192,561 3,675,109
Unrestricted (50,982,746) 85,047,584 34,064,838
Total Net Assets 3,627,149$ 123,400,456$ 127,027,605$
See Notes to Financial Statements 15
CITY OF AZUSA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2011
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 12,198,991$ 3,855,810$ 36,130$ -$
Public safety 20,187,914 713,846 808,363 109,226
Community development 3,472,237 1,915,741 464,313 -
Parks and recreation 4,184,626 997,277 254,244 -
Public works 5,539,866 364,910 2,088,441 -
Interest on long-term debt 7,380,598 - - -
Total Governmental Activities 52,964,232 7,847,584 3,651,491 109,226
Business-Type Activities:
Water 19,680,719 17,779,417 - -
Light 40,083,680 39,189,980 - -
Sewer/Wastewater 1,982,241 1,615,840 - -
Refuse contract 2,962,395 3,062,700 - -
Total Business-Type Activities 64,709,035 61,647,937 - -
Total Primary Government 117,673,267$ 69,495,521$ 3,651,491$ 109,226$
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
(8,307,051)$ -$ (8,307,051)$
(18,556,479) - (18,556,479)
(1,092,183) - (1,092,183)
(2,933,105) - (2,933,105)
(3,086,515) - (3,086,515)
(7,380,598) - (7,380,598)
(41,355,931) - (41,355,931)
- (1,901,302) (1,901,302)
- (893,700) (893,700)
- (366,401) (366,401)
- 100,305 100,305
- (3,061,098) (3,061,098)
(41,355,931) (3,061,098) (44,417,029)
12,108,155 571,036 12,679,191
192,659 - 192,659
5,678,177 - 5,678,177
6,222,537 - 6,222,537
1,822,102 - 1,822,102
3,160,788 - 3,160,788
2,678,727 - 2,678,727
143,401 - 143,401
2,540,133 1,626,291 4,166,424
854,945 358,891 1,213,836
- 1,350 1,350
1,326,374 (1,326,374) -
36,727,998 1,231,194 37,959,192
(4,627,933) (1,829,904) (6,457,837)
8,059,749 125,075,427 133,135,176
195,333 154,933 350,266
3,627,149$ 123,400,456$ 127,027,605$
Net (Expenses) Revenues and Changes in Net Assets
See Notes to Financial Statements 17
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Special Revenue
Funds
Debt Service
Funds
General
Assets:
Pooled cash and investments 318,472$ 92,550$ 235,351$
Receivables:
Accounts 360,981 580 2,923
Taxes 1,348,810 -1,010,437
Notes and loans 1,140,109 1,106,116 -
Accrued interest 8,093 349 49,167
Prepaid costs 36,601 --
Deposits ---
Due from other funds 6,316,218 -2,178,320
Advances to other funds -1,567,111 -
Inventories 141,379 --
Land held for resale 20,773,837 12,898,382 -
Restricted assets:
Cash and investments ---
Cash and investments with fiscal agents 200,873 -4,122,490
Total Assets 30,645,373$15,665,088$7,598,688$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 621,986$ 28,299$ 169,192$
Accrued liabilities 1,041,767 3,889 -
Deferred revenues 1,274,173 1,106,116 45,664
Unearned revenues ---
Deposits payable 9,500 --
Due to other governments 856 -270,563
Due to other funds 11,112,132 1,818,295 3,332,546
Advances from other funds 281,000 780,774 33,513,261
Total Liabilities 14,341,414 3,737,373 37,331,226
Fund Balances:
Nonspendable:
Inventory 141,379 --
Prepaid costs 36,601 --
Land held for resale 20,773,837 12,898,382 -
Notes and loans 15,109 --
Advances to other funds -1,567,111 -
Deposits ---
Restricted for:
Community development projects ---
Public safety ---
Capital projects ---
Debt service ---
Unassigned (4,662,967) (2,537,778) (29,732,538)
Total Fund Balances 16,303,959 11,927,715 (29,732,538)
Total Liabilities and Fund Balances 30,645,373$15,665,088$7,598,688$
Low/Mod
Income Housing
Debt Service
RDA
See Notes to Financial Statements 18
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
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
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Land held for resale
Notes and loans
Advances to other funds
Deposits
Restricted for:
Community development projects
Public safety
Capital projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Other Total
Governmental Governmental
Funds Funds
16,422,888$ 17,069,261$
708,769 1,073,253
260,012 2,619,259
1,231,969 3,478,194
9,058 66,667
2,458 39,059
465 465
8,032,840 16,527,378
-1,567,111
-141,379
3,001,981 36,674,200
30,876 30,876
482,540 4,805,903
30,183,856$ 84,093,005$
580,633$ 1,400,110$
146,509 1,192,165
1,158,971 3,584,924
50,983 50,983
15,000 24,500
-271,419
3,637,073 19,900,046
1,224,752 35,799,787
6,813,921 62,223,934
-141,379
2,458 39,059
3,001,981 36,674,200
440,111 455,220
-1,567,111
465 465
7,509,924 7,509,924
1,363,182 1,363,182
10,939,964 10,939,964
482,548 482,548
(370,698) (37,303,981)
23,369,935 21,869,071
30,183,856$ 84,093,005$
See Notes to Financial Statements 19
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20
CITY OF AZUSA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Fund balances of governmental funds 21,869,071$
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 31,350,923
Bond issuance cost is an expenditure in the governmental funds, but it is
a deferred charge in the statement of net assets 2,099,516
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Long-term liabilities (73,198,357)
Compensated Absences (3,476,067)
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 (6,207,671)
Net Pension Asset 7,296,257
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds (1,490,631)
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.3,584,924
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 21,799,184
Net assets of governmental activities 3,627,149$
See Notes to Financial Statements 21
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Special Revenue
Funds
Debt Service
Funds
General
Revenues:
Taxes 24,398,370$-$ 6,187,357$
Assessments 3,098,219 --
Licenses and permits 610,298 --
Intergovernmental 280,081 --
Charges for services 1,645,357 --
Use of money and property 840,681 66,327 145,430
Fines and forfeitures 994,621 --
Contributions 24,373 --
Miscellaneous 68,738 41,058 49
Total Revenues 31,960,738 107,385 6,332,836
Expenditures:
Current:
General government 7,679,810 169,088 1,005,991
Public safety 15,801,896 --
Community development 1,678,009 --
Parks and recreation 3,303,668 --
Public works 951,676 --
Capital outlay 55,640 13,056 -
Debt service:
Principal retirement 555,000 -1,714,212
Interest and fiscal charges 436,598 44,195 6,228,750
Total Expenditures 30,462,297 226,339 8,948,953
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,498,441 (118,954) (2,616,117)
Other Financing Sources (Uses):
Transfers in 10,858,240 1,582,207 4,234,093
Transfers out (5,709,409) (1,592,160) (3,356,303)
Long-term debt issued --986,314
Total Other Financing Sources
(Uses)5,148,831 (9,953) 1,864,104
Net Change in Fund Balances 6,647,272 (128,907)(752,013)
Fund Balances, Beginning of Year, as
previously reported 9,605,047 12,056,622 (29,155,199)
Restatements 51,640 -174,674
Fund Balances, Beginning of Year, as restated 9,656,687 12,056,622 (28,980,525)
Fund Balances, End of Year 16,303,959$11,927,715$(29,732,538)$
Debt Service
RDA
Low/Mod
Income Housing
See Notes to Financial Statements 22
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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
1,621,227$ 32,206,954$
-3,098,219
-610,298
3,549,432 3,829,513
1,414,012 3,059,369
245,142 1,297,580
-994,621
94,738 119,111
48,085 157,930
6,972,636 45,373,595
1,768,734 10,623,623
4,022,473 19,824,369
1,745,215 3,423,224
425,457 3,729,125
3,252,504 4,204,180
2,694,002 2,762,698
225,000 2,494,212
586,137 7,295,680
14,719,522 54,357,111
(7,746,886) (8,983,516)
7,895,089 24,569,629
(13,183,367) (23,841,239)
- 986,314
(5,288,278) 1,714,704
(13,035,164) (7,268,812)
36,411,908 28,918,378
(6,809)219,505
36,405,099 29,137,883
23,369,935$ 21,869,071$
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, 2011
Net change in fund balances - total governmental funds (7,268,812)$
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 728,719
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets 1,494,318
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.41,010
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 (4,211,395)
Governmental funds report all contributions in relation to the annual required
contribution (ARC) for Pension and OPEB as expenditures, however in the
Statement of Activities only the ARC is an expense.
Net OPEB Liability 2,025,848
Net Pension Asset 95,636
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.341,604
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 2,237,487
Change in net assets of governmental activities (4,627,933)$
See Notes to Financial Statements 24
CITY OF AZUSA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 9,656,687$ 9,656,687$ 9,656,687$ -$
Resources (Inflows):
Taxes 25,434,880 25,434,880 24,398,370 (1,036,510)
Assessments 3,239,270 3,239,270 3,098,219 (141,051)
Licenses and permits 342,800 342,800 610,298 267,498
Intergovernmental 277,130 278,660 280,081 1,421
Charges for services 1,226,455 1,302,455 1,645,357 342,902
Use of money and property 815,000 815,000 840,681 25,681
Fines and forfeitures 997,500 997,500 994,621 (2,879)
Contributions 20,500 20,500 24,373 3,873
Miscellaneous 237,650 237,650 68,738 (168,912)
Transfers in 1,128,430 1,128,430 10,858,240 9,729,810
Amounts Available for Appropriation 43,376,302 43,453,832 52,475,665 9,021,833
Charges to Appropriation (Outflow):
General government
City Council 150,510 155,510 133,857 21,653
City Attorney 231,000 231,000 251,793 (20,793)
Administration 533,080 553,400 584,408 (31,008)
Promotion / Membership 183,350 221,730 173,880 47,850
City Clerk 527,795 579,555 606,068 (26,513)
Library Services - General 1,398,240 1,387,140 1,275,666 111,474
Library Services - Youth 27,680 27,680 24,146 3,534
Finance - Accounting 1,099,455 1,107,945 979,072 128,873
Cash Management 123,225 133,225 128,303 4,922
Purchasing 334,670 335,050 334,459 591
Printing Services 13,150 13,150 10,505 2,645
Human Resources 320,435 320,815 254,561 66,254
City-wide 2,614,930 2,631,810 2,566,329 65,481
Admin Services / Business License 309,535 330,245 341,040 (10,795)
California Literacy Grant - 21,230 15,723 5,507
Public safety
Police 14,047,095 14,078,366 14,847,909 (769,543)
Emergency Services 149,320 149,700 146,957 2,743
Police Department Contracts 846,480 846,480 705,914 140,566
Area D - - 97,266 (97,266)
Pension - Safety 5,000 5,000 3,850 1,150
Community development
Planning 592,410 596,700 603,334 (6,634)
Building Regulation 540,500 618,010 614,787 3,223
Code Enforcement 465,965 469,875 459,888 9,987
Parks and recreation
Recreation 1,335,050 1,361,640 1,479,054 (117,414)
Parks Maintenance 1,469,160 1,511,810 1,616,111 (104,301)
Senior Programs 180,625 180,975 183,587 (2,612)
Women's Club 28,125 28,175 24,916 3,259
Public works
Engineering Service 242,595 243,355 245,428 (2,073)
Graffiti Removal 127,385 127,385 105,745 21,640
Facilities Maintenance 546,805 610,910 600,503 10,407
Capital outlay - 59,519 55,640 3,879
Debt service:
Principal retirement 555,000 555,000 555,000 -
Interest and fiscal charges 454,635 454,635 436,598 18,037
Transfers out 4,112,910 4,136,150 5,709,409 (1,573,259)
Total Charges to Appropriations 33,566,115 34,083,170 36,171,706 (2,088,536)
Budgetary Fund Balance, June 30 9,810,187$ 9,370,662$ 16,303,959$ 6,933,297$
See Notes to Financial Statements 25
CITY OF AZUSA
BUDGETARY COMPARISON STATEMENT
LOW AND MODERATE INCOME HOUSING
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 12,056,622$ 12,056,622$ 12,056,622$ -$
Resources (Inflows):
Use of money and property 5,000 5,000 66,327 61,327
Miscellaneous 10,000 10,000 41,058 31,058
Transfers in 1,576,110 1,576,110 1,582,207 6,097
Amounts Available for Appropriation 13,647,732 13,647,732 13,746,214 98,482
Charges to Appropriation (Outflow)
General government 357,000 357,000 169,088 187,912
Capital outlay - - 13,056 (13,056)
Debt service:
Principal retirement 99,620 99,620 - 99,620
Interest and fiscal charges 50,170 50,170 44,195 5,975
Transfers out 1,504,280 1,504,280 1,592,160 (87,880)
Total Charges to Appropriations 2,011,070 2,011,070 1,818,499 192,571
Budgetary Fund Balance, June 30 11,636,662$11,636,662$11,927,715$ 291,053$
See Notes to Financial Statements 26
CITY OF AZUSA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2011
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Assets:
Current:
Cash and investments 21,444,890$ 2,493,686$ 2,292,315$ 26,230,891$ 911,527$
Receivables:
Accounts 3,029,986 4,178,902 581,656 7,790,544 47,253
Notes and loans 1,310 74,140 - 75,450 15,279
Accrued interest 35,739 26,571 1,825 64,135 24,504
Prepaid costs 281 1,750 -2,031 79,636
Deposits 36,325 79,458 - 115,783 -
Due from other funds - 115,594 - 115,594 3,285,666
Inventories - 1,526,197 - 1,526,197 -
Land held for resale 2,919,646 5,278,307 - 8,197,953 -
Restricted:
Cash and investments - 2,681,256 - 2,681,256 -
Cash with fiscal agent 8,601,417 1,947,451 293,120 10,841,988 -
Cash held for rate stabilization - 9,257,946 - 9,257,946 -
Total Current Assets 36,069,594 27,661,258 3,168,916 66,899,768 4,363,865
Noncurrent:
Deferred debt issuance costs 758,192 207,074 79,775 1,045,041 -
Advances to other funds 1,182,521 12,703,754 - 13,886,275 20,346,401
Capital assets - net of
accumulated depreciation 92,607,199 30,957,313 9,138,091 132,702,603 1,569,584
Total Noncurrent Assets 94,547,912 43,868,141 9,217,866 147,633,919 21,915,985
Total Assets 130,617,506$71,529,399$12,386,782$214,533,687$26,279,850$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 1,830,825$ 1,189,835$ 554,814$ 3,575,474$ 568,888$
Accrued liabilities 62,045 80,548 33,863 176,456 144,996
Accrued interest 1,674,635 228,103 42,979 1,945,717 -
Deposits payable 770,136 1,940,998 - 2,711,134 1,423
Due to other governments 40,278 -- 40,278 -
Due to other funds ---- 28,592
Accrued compensated absences 275,809 289,497 78,025 643,331 364,888
Accrued claims and judgments ---- 1,006,169
Bonds, notes, and capital leases 1,180,000 505,000 115,000 1,800,000 -
Total Current Liabilities 5,833,728 4,233,981 824,681 10,892,390 2,114,956
Noncurrent:
Accrued compensated absences 95,731 208,434 19,927 324,092 127,029
Accrued claims and judgments ---- 874,597
Bonds, notes, and capital leases 71,124,120 8,513,609 1,643,104 81,280,833 -
Total Noncurrent Liabilities 71,219,851 8,722,043 1,663,031 81,604,925 1,001,626
Total Liabilities 77,053,579 12,956,024 2,487,712 92,497,315 3,116,582
Net Assets:
Invested in capital assets, net of related debt 26,005,055 1,010,809 7,379,987 34,395,851 1,569,584
Restricted for debt service 2,899,441 - 293,120 3,192,561 -
Unrestricted 24,659,431 57,562,566 2,225,963 84,447,960 21,593,684
Total Net Assets 53,563,927 58,573,375 9,899,070 122,036,372 23,163,268
Total Liabilities and Net Assets 130,617,506$71,529,399$12,386,782$214,533,687$26,279,850$
Reconciliation of Net Assets to the Statement of Net Assets
Net Assets per Statement of Net Assets - Proprietary Funds 122,036,372$
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds activities related to the enterprise funds 1,371,564
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (7,480)
Net Assets per Statement of Net Assets 123,400,456$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 27
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28
CITY OF AZUSA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Operating Revenues:
Sales and service charges 17,625,477$39,107,089$4,678,540$ 61,411,106$ 11,033,864$
Interdepartmental charges 39,267 182,952 - 222,219 -
Miscellaneous - 132,187 4,485 136,672 280,017
Total Operating Revenues 17,664,744 39,422,228 4,683,025 61,769,997 11,313,881
Operating Expenses:
Administration and general 6,335,406 6,478,078 - 12,813,484 8,658,958
Source of supply 925,390 25,169,035 - 26,094,425 366,840
Pumping 32,726 --32,726 -
Transmission/collection 1,593,543 3,285,863 - 4,879,406 -
Treatment 465,855 - 1,510,740 1,976,595 -
Refuse collection -- 2,962,395 2,962,395 -
Cost of sales and services 3,060,276 84,031 - 3,144,307 -
Claims expense ---- 1,274,602
Depreciation expense 3,648,794 1,245,003 321,643 5,215,440 323,882
Total Operating Expenses 16,061,990 36,262,010 4,794,778 57,118,778 10,624,282
Operating Income (Loss)1,602,754 3,160,218 (111,753) 4,651,219 689,599
Nonoperating Revenues (Expenses):
Taxes -- 571,036 571,036 -
Interest revenue 661,855 909,840 54,596 1,626,291 1,294,726
Interest expense (3,277,696) (482,414) (116,844) (3,876,954)-
Special franchise fees (341,033) (3,339,256) (33,014) (3,713,303)-
Gain (loss) on disposal of capital assets - - 1,350 1,350 (107,991)
Total Nonoperating
Revenues (Expenses)(2,956,874) (2,911,830) 477,124 (5,391,580) 1,186,735
Income (Loss) Before Transfers (1,354,120) 248,388 365,371 (740,361) 1,876,334
Transfers in 303,634 -- 303,634 597,984
Transfers out (513,030) (191,267)(681,400) (1,385,697) (244,311)
Changes in Net Assets (1,563,516) 57,121 (316,029) (1,822,424) 2,230,007
Net Assets:
Beginning of Year, as
previously reported 54,991,602 58,497,162 10,215,099 123,703,863 20,933,261
Restatements 135,841 19,092 - 154,933 -
Beginning of Fiscal Year, as restated 55,127,443 58,516,254 10,215,099 123,858,796 20,933,261
End of Fiscal Year 53,563,927$58,573,375$9,899,070$ 122,036,372$23,163,268$
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 (1,822,424)$
Adjustment to reflect the consolidation of current fiscal year
internal service funds activities related to enterprise funds (7,480)
Changes in Net Assets of Business-Type Activities per Statement of Activities (1,829,904)$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 29
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users 20,274,480$ 39,315,082$ 4,672,249$ 64,261,811$ 11,285,152$
Cash received from/(paid to) interfund service provided 39,267 182,952 - 222,219 -
Cash paid to suppliers for goods and services (8,819,740) (33,687,608) (3,419,786) (45,927,134) (2,142,931)
Cash paid to employees for services (6,422,985) (6,483,802) (1,040,203) (13,946,990) (8,713,776)
Net Cash Provided (Used) by Operating Activities 5,071,022 (673,376) 212,260 4,609,906 428,445
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (513,030) (191,267) (681,400) (1,385,697) (244,311)
Cash transfers in 303,634 - - 303,634 597,984
Cash due from other funds - - - - (3,247,467)
Repayment made to other funds (450,000) - (22,780) (472,780) (9,362)
Advance from other funds - 4,896,407 - 4,896,407 -
Advance to other funds (543,063) - - (543,063) (1,878,258)
Net Cash Provided (Used) by
Non-Capital Financing Activities (1,202,459) 4,705,140 (704,180) 2,798,501 (4,781,414)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (557,944) (308,516) (42,380) (908,840) (257,568)
Principal paid on capital debt (1,246,849) (477,889) (109,810) (1,834,548) -
Interest paid on capital debt (3,259,171) (470,912) (111,502) (3,841,585) -
Special franchise fees received (341,033) (3,339,256) (33,014) (3,713,303) -
Taxes received - - 571,036 571,036 -
Proceeds from sales of capital assets - - 1,350 1,350 (107,991)
Net Cash Provided (Used) by
Capital and Related Financing Activities (5,404,997) (4,596,573) 275,680 (9,725,890) (365,559)
Cash Flows from Investing Activities:
Repayment of loans 964 1,908 - 2,872 (9,513)
Interest received 661,804 909,691 54,375 1,625,870 1,287,179
Net Cash Provided (Used) by
Investing Activities 662,768 911,599 54,375 1,628,742 1,277,666
Net Increase (Decrease) in Cash
and Cash Equivalents (873,666) 346,790 (161,865) (688,741) (3,440,862)
Cash and Cash Equivalents at Beginning of Year 30,919,973 16,033,549 2,747,300 49,700,822 4,352,389
Cash and Cash Equivalents at End of Year 30,046,307$16,380,339$ 2,585,435$49,012,081$ 911,527$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 30
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
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)1,602,754$ 3,160,218$ (111,753)$ 4,651,219$ 689,599$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Fund balance restatements 135,841 19,092 -154,933 -
Depreciation 3,648,794 1,245,003 321,643 5,215,440 323,882
(Increase) decrease in accounts receivable 2,661,026 118,727 (10,776) 2,768,977 (28,729)
(Increase) decrease in land held for resale (2,919,646) (5,278,307) - (8,197,953) -
(Increase) decrease in inventories - 120,223 - 120,223 -
(Increase) decrease in prepaid expense 2,329 6,285 - 8,614 (53,892)
Increase (decrease) in accounts payable 23,010 (15,972) 28,353 35,391 (25,629)
Increase (decrease) in accrued liabilities (51,081) (42,071) (13,523) (106,675) (37,124)
Increase (decrease) in deposits payable (12,023) (42,921) - (54,944) -
Increase (decrease) in due to other governments 16,516 - - 16,516 -
Increase (decrease) in claims and judgments - - - - (421,968)
Increase (decrease) in compensated absences (36,498) 36,347 (1,684) (1,835) (17,694)
Total Adjustments 3,468,268 (3,833,594) 324,013 (41,313) (261,154)
Net Cash Provided (Used) by
Operating Activities 5,071,022$ (673,376)$ 212,260$ 4,609,906$ 428,445$
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets - - 1,350$ 1,350$ 107,991$
Amortization of bond discount 111,848 (2,111) (5,190) 104,547 -
Amortization of deferred debt issuance costs 40,175 23,910 7,978 72,063 -
See Notes to Financial Statements 31
CITY OF AZUSA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2011
Agency
Funds
Assets:
Pooled cash and investments 1,739,763$
Receivables:
Accounts 1,700
Taxes 34,387
Total Assets 1,775,850$
Liabilities:
Accounts payable 1,743,367$
Accrued liabilities 4,823
Deposits payable 21,415
Due to other governments 6,245
Total Liabilities 1,775,850$
See Notes to Financial Statements 32
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.
33
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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.
34
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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. 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 Low and Moderate Income Housing Fund is used to account for monies
received and expended to assist low and moderate income households.
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.
35
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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.
36
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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.
37
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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.
38
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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, government funds report the following fund balance
classification:
Nonspendable Fund Balance
The non-spendable fund balance classification includes amounts that cannot be
spent because they are either (a) not in a spendable form or (b) legally or
contractually required to be maintained intact. The “not spendable form” criterion
includes items that are not expected to be converted to cash, for example,
inventories and prepaid amounts. It also includes the long term amount of loans and
notes receivable.
Restricted Fund Balance
The restricted fund balance classification includes amounts that reflect constraints
placed on the use of resources (other than non-spendable items) that are either
(a) externally imposed by creditors (such as through bonded debt reserve funds
required pursuant to debt covenants), grantors, contributors, or laws or regulations of
other governments; or (b) imposed by law through constitutional provisions or
enabling legislation.
39
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Committed Fund Balance
The committed fund balance classification includes amounts that can only be used
for specific purposes pursuant to constraints imposed by formal action of the City
Council, the City’s highest level of decision-making authority. Those committed
amounts cannot be used for any other purpose unless the City Council removes or
changes the specific use by taking the same type of action (for example legislation,
resolution, ordinance) it employed to previously commit those amounts. Committed
fund balance also should incorporate contractual obligations to the extent that
existing resources in the fund have been specifically committed for use in satisfying
those contractual requirements. City Council action to commit fund balance needs to
occur within the fiscal reporting periods; however the amount can be determined
subsequently.
Assigned Fund Balance
The assigned fund balance classification includes amounts that are constrained by
the City’s intent to be used for specific purposes, but that are neither restricted nor
committed. The policy hereby delegates the authority to assign amounts to be used
for specific purposes to the Administrative Services Director/Chief Financial Officer
for the purpose of reporting.
Unassigned Fund Balance
These are residual positive net resources of the general fund in excess of what can
properly be classified in one of the other four categories.
The City’s current fund balance practice provides that restricted fund balance be
spent first when expenditure is incurred for which both restricted and unrestricted
fund balance is available. Similarly, when expenditure is incurred for purposes for
which amounts in any of the unrestricted classifications of fund balance can be used;
committed amounts are to be spent first, followed by assigned amounts and then
unassigned amounts.
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
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.
40
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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 28,912,147$ 911,527$
Cash with fiscal agent 10,841,988 -
Cash held for rate stabilization 9,257,946 -
Total 49,012,081$ 911,527$
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 ($73,198,357) long-term debt difference
is as follows:
Long-term debt:
Tax allocation bonds payable (54,768,014)$
Developer loans payable (9,685,015)
Certification of participation (3,255,000)
Taxable pension bonds (6,180,000)
Deferred discount on bonds and COP
(to be amortized over life of debt) 689,672
Net adjustment to reduce fund balance of total
governmental funds to arrive at net assets of
governmental activities (73,198,357)$
41
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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 $728,219 difference is as follows:
Capital outlay 2,867,357$
Depreciation expense (2,131,500)
Disposal of assets (7,138)
Net adjustment to increase net changes in fund
balances of total governmental funds to arrive at
changes in net assets of governmental activities 728,719$
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 $1,494,318 difference is as follows:
Debt issued or incurred:
Developer loan (898,189)$
Accreted interest (88,125)
Principal repayments and amortizations:
Tax allocation bonds 1,135,000
Certificate of participation 225,000
Pension bonds 555,000
Developer loans 579,212
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.1,494,318$
42
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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. The Rosedale Traffic Mitigation Fund Capital Projects Fund did not present a
budget comparison schedule.
According to Section 2-450 of the Azusa Municipal Code, budget amendments increasing
the total budget of the City by $100,000 or more must be approved by City Council.
Spending control (legal level of control) is established by the amount of expenditures
budgeted at the department level. During the year, several supplementary appropriations
were necessary. Individual amendments were not material in relation to the original
appropriations.
b. Expenditures Over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:
Expenditures Appropriations Excess
General Fund:
City Attorney 251,793$ 231,000$ (20,793)$
Administration 584,408 553,400 (31,008)
City Clerk 606,068 579,555 (26,513)
Admin Services / Business License 341,040 330,245 (10,795)
Public Safety:
Police 14,847,909 14,078,366 (769,543)
Area D 97,266 - (97,266)
Community Development
Planning 603,334 596,700 (6,634)
Parks and Recreation
Recreation 1,479,054 1,361,640 (117,414)
Parks Maintenance 1,616,111 1,511,810 (104,301)
Senior Programs 183,587 180,975 (2,612)
Public Works
Engineering Service 245,428 243,355 (2,073)
Fund
43
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 2: Stewardship, Compliance and Accountability (Continued)
c. Deficit Fund Balance
The following funds had a deficit fund balance as of June 30, 2011:
Major Funds:
Governmental:
Debt Service RDA (29,732,538)$
Nonmajor Funds:
Governmental:
Community Development Block Grant (14,598)
Capital Projects (2,000)
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, 2011, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities 22,410,525$
Business-type activities 49,419,123
Fiduciary funds 1,739,763
Total Cash and Investments 73,569,411$
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, 2011, the carrying amount of the City’s deposits was, $4,335,808, and the
bank balance was $7,764,075. The $3,428,267 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 government 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
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
44
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments (Continued)
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.
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.
45
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments (Continued)
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, 2011, the
City’s investments in Federal Agency securities consisted of investments with Federal
Home Loan Bank and Federal Farm Credit Bank. At June 30, 2011, 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, 2011, the City's investments in
external investment pools and money market mutual funds are unrated.
On Aug. 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign
credit rating on the United States of America to AA+ from AAA. As a result, on
Aug. 8, 2011, Standard & Poor's Ratings Services lowered its issuer credit ratings and
related issue ratings on various Federal Home Loan Bank, Federal Farm Credit Bank,
Fannie Mae and Freddie Mac to AA+ from AAA. The City also invests in LAIF which
invests in various underlying securities, including the federal agency securities listed
above. While LAIF is not rated, the federal agency securities are, and these have been
affected by this rating change as well.
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, 2011, 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, 2011, the City has investments of $10,053,420 (14.5%) with Federal Farm
Credit Bank and $22,295,216 (32.2%) with Federal Home Loan Bank. Investments
guaranteed by the U.S. government, investments in mutual funds and external investment
pools are excluded from this requirement.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The City's investment
policy states that no investment may have a maturity of more than five years without
receiving prior City Council approval. The only exception to these maturity limits shall be
the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated
with bond issues may have a maturity of more than five years. The City has elected to
use the segmented time distribution method of disclosure for its interest rate risk. As of
June 30, 2011, the City had the following investments and original maturities:
46
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments (Continued)
6 months 6 months 1 to 3 3 to 5 More than Fair
or less to 1 year years years 5 years Value
Federal agency securities 1,219,386$ 3,038,550$ 3,009,140$ 25,081,560$ -$ 32,348,636$
Local Agency Investment Fund 17,796,195 - - - - 17,796,195
Money market mutual funds 3,440,840 - - - - 3,440,840
Cash with Fiscal Agents:
Money market mutual funds 9,499,664 - - - - 9,499,664
Guaranteed Investment Contracts - - 1,698,723 1,410,235 284,527 3,393,485
Repurchase Agreements - - - - 2,754,783 2,754,783
31,956,085$ 3,038,550$ 4,707,863$ 26,491,795$ 3,039,310$ 69,233,603$
Remaining Investment Maturities
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2011, was as follows:
Beginning Beginning Ending
Balance Adjustments Balance Transfers Increases Decreases Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land 1,729,956$ -$ 1,729,956$ -$ -$ -$ 1,729,956$
Construction-in-progress 255,955 - 255,955 (75,177) 964,326 - 1,145,104
Total Capital Assets
Not Being Depreciated 1,985,911 - 1,985,911 (75,177) 964,326 - 2,875,060
Capital Assets, Being Depreciated:
Land improvements 5,833,825 - 5,833,825 - 17,230 - 5,851,055
Buildings and structures 12,036,766 - 12,036,766 - 187,810 - 12,224,576
Machinery and equipment 7,035,225 - 7,035,225 - 286,748 - 7,321,973
Automotive equipment 3,507,375 (285,593) 3,221,782 - 175,710 169,563 3,227,929
Infrastructure 44,007,222 - 44,007,222 75,177 1,386,717 - 45,469,116
Total Capital Assets
Being Depreciated 72,420,413 (285,593) 72,134,820 75,177 2,054,215 169,563 74,094,649
Less Accumulated Depreciation:
Land improvements 2,966,229 - 2,966,229 - 188,981 - 3,155,210
Buildings and structures 4,453,292 - 4,453,292 - 285,656 - 4,738,948
Machinery and equipment 5,608,844 - 5,608,844 - 286,334 - 5,895,178
Automotive equipment 2,209,861 (202,541) 2,007,320 - 232,052 100,596 2,138,776
Infrastructure 27,599,203 - 27,599,203 - 1,286,347 - 28,885,550
Total Accumulated Depreciation 42,837,429 (202,541) 42,634,888 - 2,279,370 100,596 44,813,662
Total Capital Assets
Being Depreciated, Net 29,582,984 (83,052) 29,499,932 75,177 (225,155) 68,967 29,280,987
Governmental Activities
Capital Assets, Net 31,568,895$ (83,052)$ 31,485,843$ -$ 739,171$ 68,967$ 32,156,047$
47
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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 3,774,100 (2,695,736) 726,481 - 1,804,845
Total Capital Assets
Not Being Depreciated 6,763,073 (2,695,736) 726,481 - 4,793,818
Capital Assets, Being Depreciated:
Land improvements 1,196,169 - 16,149 - 1,212,318
Building and structures 22,612,752 - 23,020 - 22,635,772
Machinery and equipment 12,285,129 - 23,682 - 12,308,811
Automotive equipment 3,586,716 - 7,324 19,200 3,574,840
Infrastructure 141,914,411 2,695,736 347,379 144,957,526
Total Capital Assets
Being Depreciated 181,595,177 2,695,736 417,554 19,200 184,689,267
Less Accumulated Depreciation:
Land improvements 595,182 - 39,541 - 634,723
Building and structures 7,154,298 - 538,458 - 7,692,756
Machinery and equipment 8,266,297 - 555,122 - 8,821,419
Automotive equipment 2,844,035 - 175,325 19,200 3,000,160
Infrastructure 31,775,856 - 4,091,108 - 35,866,964
Total Accumulated Depreciation 50,635,668 - 5,399,554 19,200 56,016,022
Total Capital Assets
Being Depreciated, Net 130,959,509 2,695,736 (4,982,000) - 128,673,245
Business-Type Activities
Capital Assets, Net 137,722,582$ -$ (4,255,519)$ -$ 133,467,063$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government 199,000$
Public safety 156,585
Community development 22,263
Parks and recreation 387,118
Public works 1,366,534
Internal service funds 147,870
Total 2,279,370$
Business-Type Activities:
Water 3,648,794$
Light 1,245,003
Sewer/Wastewater 329,745
Internal service funds 176,012
Total 5,399,554$
48
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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, 2011:
Balances at Balances at Due Within
July 1, 2010 Additions Deletions June 30, 2011 One Year
City:
Compensated absences 3,316,368$ 2,488,583$ 2,328,884$ 3,476,067$ 2,440,303$
Net OPEB liability 4,181,823 2,694,000 668,152 6,207,671 -
2008 Taxable pension funding bonds 6,735,000 - 555,000 6,180,000 625,000
Total City 14,233,191 5,182,583 3,552,036 15,863,738 3,065,303
Public Financing Authority:
2003 Certificates of participation 3,480,000 - 225,000 3,255,000 230,000
Redevelopment Agency:
Tax allocation bonds, 2003 Series A 8,815,000 - 460,000 8,355,000 475,000
Tax allocation bonds, 2005 Series A 9,429,889 88,125 *- 9,518,014 -
Tax allocation bonds, 2007 Series A 15,075,000 - 385,000 14,690,000 410,000
Tax allocation bonds, 2007 Series B 4,625,000 - 85,000 4,540,000 90,000
Tax allocation bonds, 2008 Series A 6,645,000 - 80,000 6,565,000 80,000
Tax allocation bonds, 2008 Series B 11,225,000 - 125,000 11,100,000 125,000
Obligation under developer
agreements 9,366,038 898,189 579,212 9,685,015 -
Total Redevelopment Agency 65,180,927 986,314 1,714,212 64,453,029 1,180,000
Internal Service Funds:
Compensated absences 226,063 139,982 130,976 235,069 131,221
Claims and judgments payable 2,302,734 809,945 1,231,913 1,880,766 1,006,169
Total Internal Service 2,528,797 949,927 1,362,889 2,115,835 1,137,390
Total Governmental
Long-term Debt 85,422,915$ 7,118,824$ 6,854,137$ 85,687,602 5,612,693$
Less unamortized original issue discount (689,672)
84,997,930$
* Addition of $88,126 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.
49
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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 $1,175,000 on
January 1 each year from 2010 through 2018. The annual principal requirements to
amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2011, are as
follows:
Principal Interest
2011-2012 625,000$ 401,700$
2012-2013 700,000 361,075
2013-2014 780,000 315,575
2014-2015 870,000 264,875
2015-2016 965,000 208,325
2017-2021 2,240,000 221,975
Total 6,180,000$ 1,773,525$
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, 2011, the
reserve requirement of $482,500 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, 2011, was
$3,255,000.
The annual requirements to repay the outstanding indebtedness at June 30, including
interest, are shown in the schedule below:
Principal Interest
2011-2012 230,000$ 127,588$
2012-2013 240,000 119,650
2013-2014 245,000 111,040
2014-2015 255,000 101,849
2015-2016 265,000 91,768
2016-2021 2,020,000 270,556
Total 3,255,000$ 822,451$
2003 Certificates of
Participation
50
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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, 2011, was
$8,355,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest, are as follows:
Principal Interest
2011-2012 475,000$ 339,779$
2012-2013 495,000 323,516
2013-2014 515,000 305,519
2014-2015 530,000 286,248
2015-2016 550,000 265,310
2016-2021 3,120,000 958,125
2021-2026 2,670,000 207,388
Totals 8,355,000$ 2,685,885$
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
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, 2011, was $9,518,015.
51
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 -$ 349,425$
2012-2013 - 349,425
2013-2014 - 349,425
2014-2015 - 349,425
2015-2016 - 349,425
2016-2021 - 1,747,125
2021-2026 1,125,469 1,747,125
2026-2031 4,542,546 2,384,135
2031-2036 3,850,000 1,861,981
Totals 9,518,015$ 9,487,491$
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, 2011, was $14,690,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 410,000$ 871,863$
2012-2013 430,000 847,650
2013-2014 450,000 822,284
2014-2015 480,000 795,477
2015-2016 505,000 767,084
2016-2021 3,010,000 3,343,242
2021-2026 2,625,000 2,415,354
2026-2031 2,465,000 1,759,976
2031-2036 4,315,000 771,056
Totals 14,690,000$ 12,393,986$
Bonds, Series A
2007 Tax Allocation
52
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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, 2011, was $4,540,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 90,000$ 230,423$
2012-2013 95,000 226,305
2013-2014 100,000 221,968
2014-2015 105,000 217,405
2015-2016 110,000 212,513
2016-2021 620,000 979,700
2021-2026 785,000 804,644
2026-2031 1,020,000 568,233
2031-2036 1,310,000 261,555
2036-2041 305,000 8,083
Totals 4,540,000$ 3,730,829$
Bonds, Series B
2007 Tax Allocation
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, 2011, was
$6,565,000.
53
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 80,000$ 495,188$
2012-2013 85,000 490,544
2013-2014 95,000 485,250
2014-2015 100,000 479,275
2015-2016 110,000 472,575
2016-2021 700,000 2,232,331
2021-2026 2,120,000 1,723,131
2026-2031 2,185,000 893,750
2031-2036 1,090,000 288,800
Totals 6,565,000$ 7,560,844$
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, 2011, was $11,100,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 125,000$ 691,533$
2012-2013 130,000 685,158
2013-2014 135,000 678,364
2014-2015 145,000 670,833
2015-2016 155,000 662,389
2016-2021 915,000 3,153,898
2021-2026 1,595,000 2,785,544
2026-2031 3,210,000 1,921,850
2031-2036 3,800,000 669,200
2036-2041 890,000 -
Totals 11,100,000$ 11,918,769$
2008 Series B
Housing Tax Allocation Bond
54
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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 $102,545,813. For the current year, the total tax increment revenue
recognized net of pass-through payments by the Agency was $2,949,046 and
debt service on bond outstanding was $4,164,727.
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, 2014, 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, 2011, was $9,685,015.
On May 15, 1989, the Agency entered into an agreement with the City of Azusa to
transfer all sales tax revenues received by the Agency under the Price Company
developer agreement to the City, except that required for repayment of the note or other
required purposes.
55
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
b. Long-Term Debt – Business-Type Activities
The following is a summary of changes in long-term debt for the year ended
June 30, 2011:
Balances at Balances at Due Within
July 1, 2010 Additions Deletions June 30, 2011 One Year
Water Fund:
Compensated absences 408,038$ 266,405$ 302,903$ 371,540$ 275,809$
Certificates of participation,
2003 Series A 15,675,000 - 840,000 14,835,000 870,000
2006 Water Revenue Bonds 54,570,000 - 295,000 54,275,000 310,000
Total Water Fund 70,653,038 266,405 1,437,903 69,481,540 1,455,809
Light Fund:
Compensated absences 461,584 304,712 268,365 497,931 289,497
Certificates of participation,
2003 Series B and C 9,525,000 - 480,000 9,045,000 505,000
Total Light Fund 9,986,584 304,712 748,365 9,542,931 794,497
Sewer/Wastewater Fund:
Compensated absences 99,636 77,682 79,366 97,952 78,025
Certificates of participation, 1994 1,925,000 - 115,000 1,810,000 115,000
Total Sewer/Wastewater Fund 2,024,636 77,682 194,366 1,907,952 193,025
Internal Service Funds:
Compensated absences 283,548 231,258 257,958 256,848 233,667
Total Internal Service 283,548 231,258 257,958 256,848 233,667
Total Business-Type
Funds 82,947,806 880,057$ 2,638,592$ 81,189,271 2,676,998$
Unamortized bond premiums 3,199,139
Unamortized bond discounts (83,306)
84,305,104$
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.
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, 2011, the reserve
requirement of $1,562,157 was fully funded.
56
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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, 2011, was
$14,835,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 870,000$ 662,683$
2012-2013 910,000 627,083
2013-2014 945,000 589,510
2014-2015 985,000 549,206
2015-2016 1,025,000 505,725
2016-2021 5,870,000 1,761,821
2021-2026 4,230,000 320,769
Totals 14,835,000$ 5,016,797$
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
$13,230,000 and interest ranges from 3.920% to 4.380%.
The annual requirements to amortize the outstanding bonds as of June 30, 2011,
including interest are as follows:
Principal Interest
2011-2012 310,000$ 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
2015-2016 1,090,000 2,555,738
2016-2021 6,335,000 11,904,313
2021-2026 8,115,000 10,130,594
026-2031 10,290,000 7,948,250
2031-2036 13,210,000 5,025,000
2036-2041 13,230,000 1,364,250
Totals 54,275,000$ 49,483,572$
2006 Water Revenue Bonds
57
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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, 2011, 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, 2011, was
$5,470,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2011, including interest are as follows:
Principal Interest
2011-2012 -$ 263,438$
2012-2013 - 263,438
2013-2014 - 263,438
2014-2015 - 263,438
2015-2016 - 263,438
2016-2021 2,845,000 1,067,805
2021-2026 2,625,000 198,713
Totals 5,470,000$ 2,583,708$
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, 2011, the reserve
requirement of $652,500 was fully funded.
58
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Long-Term Debt (Continued)
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, 2011, was
$3,575,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2011, including interest, are as follows:
Principal Interest
2011-2012 505,000$ 179,713$
2012-2013 530,000 152,959
2013-2014 555,000 124,911
2014-2015 585,000 94,272
2015-2016 620,000 60,713
2016-2021 780,000 28,964
Totals 3,575,000$ 641,532$
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, 2011, the reserve
requirement of $284,527 was fully funded. The outstanding principal balance at
June 30, 2011, was $1,810,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2011, including interest, are as follows:
Principal Interest
2011-2012 115,000$ 99,988$
2012-2013 125,000 93,388
2013-2014 130,000 86,375
2014-2015 135,000 78,919
2015-2016 145,000 70,869
2016-2021 1,160,000 206,140
Totals 1,810,000$ 635,679$
Participation
Sewer - 1994 Certificates of
59
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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, 2011 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, 2011, were as follows:
60
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 7: Defined Benefit Pension Plan (Continued)
Annual required contribution 2,214,298$
Interest on net pension obligation (558,048)
Adjustment to annual required contribution 462,412
Annual pension cost 2,118,662
Contribution made 2,214,298
Increase (decrease) in net pension obligation (95,636)
Net pension obligation (asset) beginning of year (7,200,621)
Net pension obligation (asset) end of year (7,296,257)$
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.
61
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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
6/30/2009 2,617$ 100%-$
6/30/2010 2,655 100%-
6/30/2011 2,725 100%-
Three-Year Trend Information for PERS (Safety Plan)
(Amounts in Thousands)
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC)APC Contributed Obligation
6/30/2009 3,329$ 313%(7,099)$
6/30/2010 2,173 105%(7,201)
6/30/2010 2,119 105%(7,296)
For fiscal year 2011-2012, 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.
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
6/30/2008 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%
6/30/2010 82,653 93,158 10,505 88.7% 16,192 64.88%
Schedule of Funding Progress for PERS
PERS Miscellaneous Plan
(Amounts in Thousands)
62
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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, 2011, the covered payroll for employees in the
plan was $458,986. Total payroll for the City was $22,465,772 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, 2011,
the employer and the employees each contributed an amount equal to $17,212. 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%
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 $439,152 was made
during the 2010-2011 fiscal year and was not included in the July 1, 2006, actuarial
study. The purpose of the contribution was to pay current year premiums for retirees.
63
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 9: Post-Employment Benefits (Continued)
As a result, the City calculated and recorded a Net OPEB Liability, representing the
difference between the Annual Required Contribution (ARC) and actual contributions, as
presented below:
Annual required contribution (ARC)2,537,000$
Interest on Net OPEB Obligation 157,000
Adjustment to ARC (229,000)
Annual OPEB Cost 2,465,000
Contributions made (439,152)
(Decrease) increase in Net OPEB obligation 2,025,848
Net OPEB obligation (asset) June 30, 2010 4,181,823
6,207,671$
The contribution rate of 17.7% is based on the ARC of $2,237,000, 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 2011-2012, the City’s annual OPEB cost (expense) of $2,465,000 was
less than the ARC. The last three year trend information on the annual OPEB cost,
percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented
below:
Fiscal Year
End
Annual
OPEB
Cost
Actual
Contribution (Net
of Adjustments)
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Obligation
(Asset)
6/30/2009 2,696,000$ 352,395$ 13% 2,343,605$
6/30/2010 2,193,000 354,782 16% 1,838,218
6/30/2011 2,465,000 439,152 18% 2,025,848
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%
64
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 9: Post-Employment Benefits (Continued)
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, 2011, was twenty-seven years. The number of active participants is 352.
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
$5,000,000.
For the past three years, no settlements or claims payments have exceeded the amount of
the applicable insurance coverage. For the past two fiscal years, the changes in the City's
liability for claims payable are summarized as follows:
Claims Incurred
Beginning and Changes Less Claim Ending
Balance in Estimates Payments Balance
2009-2010 3,068,169$ 550,265$ (1,315,700)$ 2,302,734$
2010-2011 2,302,734 809,945 (1,231,913) 1,880,766
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.
65
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 11: Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2011, was as follows:
Due To/From Other Funds
Debt Service Nonmajor
General Redevelopment Governmental Internal
Funds Fund Agency Funds Light Service Total
Due to Other Funds:
General -$ -$ 8,032,774$ -$ 3,079,358$ 11,112,132$
Special Revenue -
Low/Mod Income Housing 1,000,000 818,295 - - - 1,818,295
Debt Service -
Redevelopment Agency 3,332,480 - 66 - - 3,332,546
Nonmajor Governmental Funds 1,983,738 1,360,025 - 115,594 177,716 3,637,073
Internal service funds - - - - 28,592 28,592
Total 6,316,218$ 2,178,320$ 8,032,840$ 115,594$ 3,285,666$ 19,928,638$
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.
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
Special Revenue Internal Service
Low/Mod Water Light Service
Funds Income Housing Fund Fund Funds Total
Advances From Other Funds:
General -$ -$ 281,000$ -$ 281,000$
Special Revenue - Low/Mod
Income Housing - - 780,774 - 780,774
Debt Service - Redevelopment
Agency 1,567,111 707,769 10,891,980 20,346,401 33,513,261
Nonmajor Funds - 474,752 750,000 - 1,224,752
Total 1,567,111$ 1,182,521$ 12,703,754$ 20,346,401$ 35,799,787$
Advances To Other Funds:
66
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 11: Interfund Receivables, Payables and Transfers (Continued)
The Light Fund advanced $281,000 to the General Fund and $750,000 to the Capital
Projects Fund and $780,774 to Low and Moderate Income Housing Fund for various project
expenditures. The Light Fund also advanced $10,891,980 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 Water Fund advanced $1,182,521 to the Redevelopment Agency to fund various project
expenditures.
The Intra-governmental Loan Fund advanced $20,346,401 to the Redevelopment Agency
Debt Service Fund for multiple development projects, such as Price Club, Ranch Center Loan
and the Ranch Center Sales Tax Loan.
Interfund Transfers
Special Revenue Debt Service Nonmajor
General Low/Mod Redevelopment Governmental Water Internal
Funds Fund Income Housing Agency Funds Fund Service Funds Total
Transfer Out:
General -$ -$ -$ 5,172,759$ -$ 536,650$ 5,709,409$
Special Revenue -
Low/Mod Income Housing - - 1,314,445 277,715 - - 1,592,160
Debt Service -
Redevelopment Agency 359,607 1,582,207 - 1,110,855 303,634 - 3,356,303
Nonmajor Governmental
Funds 9,118,769 - 2,919,648 1,134,871 - 10,079 13,183,367
Water Fund 513,030 - - - - - 513,030
Light Fund - - - 191,267 - - 191,267
Nonmajor Proprietary
Funds 681,400 - - - - - 681,400
Internal Service Funds 185,434 - - 7,622 - 51,255 244,311
Total 10,858,240$ 1,582,207$ 4,234,093$ 7,895,089$ 303,634$ 597,984$ 25,471,247$
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 $2,919,648 to non-major
funds related to 20% set-aside to low and moderate income housing fund.
Transfers to General Fund from Redevelopment agency, non-major proprietary funds, and
internal service funds were related to interest income, franchise fees and operating
transactions.
67
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 12: Fund Equity and Net Assets Restatements
Beginning fund equity and net assets have been restated as follows:
Major governmental funds:
General Fund
To recognize revenue that related to prior year.51,640$
Redevelopment Agency - Debt Service Fund
To record expenditures related to prior year.174,674
Non-major governmental funds:
State Gasoline Tax Fund
To properly restate prior year balance.(2,419)
Proposition C Fund
To record prior years actual activities.(5,126)
Redevelopment Agency - Capital Projects Fund
To properly restate loan principal payment made in prior year.545
To prperly restate a purchase from prior year.191
Total Governmental Funds 219,505$
Proprietary Funds:
Enterprise Funds:
Water Fund
To properly capitalize legal fees from prior year.140,136$
To properly adjust depreciation for prior year.(4,295)
Light Fund
To properly restate revenues related to prior year.22,900
To properly adjust depreciation for prior year.(3,808)
Total Proprietary Funds 154,933$
Beginning net assets has been restated as follows:
Governmental Activities:
Governmental fund restatements detailed above 219,505$
To properly restate capital assets and related depreciation related to prior year. (24,172)
Total Governmental Activities 195,333
Business-Type Activities:
Enterprise funds restatements detailed above 154,933
Total Net Asset Restatements 350,266$
68
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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 222,817$
Asset Seizure County 22,392
Asset Seizure Drug and Gang 6,435
Office of Traffic Safety 2,761
Asset Seizure Federal - Department of Treasury 86
Inmate Welfare Fund 9,703
ARRA JAG grant 2009 (538)
Renew Grant ( LA County )7,589
AQMD Tree Planting 33,884
Senior Center Canyon City Grant 5,490
Senior Restricted Donations 98
Public Library Fund 294,751
Library Restricted Donations 62,358
Gates Foundation 497
Canyon City Foundation 7,148
Broadband Grant (Lib)3,192
Family Place Grant 1,889
Book Clubs 2,488
TLA50 Fellowship Grant 1,322
Summer Reading 4,959
Special Programs 451
California Literacy Grant 50,558
General Plan Surcharge 255,220
AB29X Meters 86,607
Oil Block Grant 6,146
Beverage Container Recycling 44,332
Technology Grant 143,058
Rehabilitation of Zacatecas Park 516
Grants and Seizures (17,394)
Jack Williams Memorial 600
Police - Grants and Seizure 17
Total 1,259,432$
69
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
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, 2011, is as follows:
Assets:
Current assets 2,377,657$
Restricted assets 293,120
Capital assets 9,138,091
Noncurrent assets 79,775
Total assets 11,888,643
Liabilities:
Current liabilities 342,569
Noncurrent liabilities 1,663,031
Total liabilities 2,005,600
Net assets:
Invested in capital assets, net of related debt 7,379,987
Restricted 293,120
Unrestricted 2,209,936
Total net assets 9,883,043$
Condensed Statement of Net Assets
Sewer charges 1,617,040$
Depreciation expense (321,643)
Other operating expenses (1,510,740)
Operating income (215,343)
Nonoperating revenues (expenses):
Investment earnings 54,596
Interest expense (116,844)
Gain (Loss) on disposal of asset 1,350
Special franchise fees (33,014)
Transfers out (140,000)
Change in net assets (449,255)
Beginning net assets 10,332,298
Ending net assets 9,883,043$
Condensed Statement of Revenues, Expenses
and Changes in Net Assets
Net cash provided (used) by:
Operating activities 112,014$
Noncapital financing activities (140,000)
Capital and related financing activities (295,356)
Investing activities 54,375
Net increase (decrease)(268,967)
Beginning cash and cash equivalents 2,747,300
Ending cash and cash equivalents 2,478,333$
Condensed Statement of Cash Flows
70
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 15: 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, 2011, the City’s ownership of significant projects of SCPPA includes the
following: 1% of SCPPA’s $707,802,000 investment (at cost) in the Palo Verde Nuclear
Generating Station (with related SCPPA indebtedness of $75,918,000 1% of SCPPA’s
$57,490,000 investment (at cost) in the Mead – Phoenix Transmission Project (with
related SCPPA indebtedness of $52,092,000), 2.2% of SCPPA’s $173,272,000
investment (at cost) in the Mead - Adelanto Transmission Project (with related SCPPA
indebtedness of $166,202,000), 14.7% of SCPPA’s $244,537,000 investment (at cost) in
the San Juan Generating Station (with related indebtedness of $126,519,000), and 4.2%
of SCPPA’s $21,000 investment (at cost) in the Hoover Uprating Green Power Project
(with related SCPPA indebtedness of $13,006,000).
Note 16: Rate Stabilization Fund
The City of Azusa has provided for a rate stabilization fund in the amount of $9,257,946
(presented in the accompanying balance sheet as cash held for rate stabilization) to cover
the difference between the City's cost to provide electricity to its customers (including power
charges for power purchased from other utilities in which the City has a joint venture interest)
and the local market price for electricity as established by a regional power pool approved by
the Federal Energy Regulatory Commission.
Note 17: Commitments and Contingencies
The City of Azusa has been named as a defendant in numerous lawsuits and claims arising
in the course of operations. In the aggregate, these claims seek monetary damages in
significant amounts. To the extent the outcome of such litigation has been determined to
result in probable financial loss to the City, such loss has been accrued in the accompanying
combined financial statements.
Also, the following material construction commitments existed at June 30, 2011:
Project Name
Contract
Amount
Expenditures to
date as of June
30, 2011
Remaining
Commitments
Customer Service Information Systems Upgrade 400,000$ $ 199,323 200,677$
Foothill Blvd. Reconstruction 640,911 70,336 570,575
71
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 18: Transactions with the State of California
a. SERAF Shift for fiscal year 2010-2011 and 2011-2012
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, 2011, for fiscal year 2010-2011 and it
was made in the amount of $513,029. 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 City advanced the Agency $513,029. In the
accompanying financial statements, the amount paid to the County has been reported as
an advance.
Note 19: California Redevelopment Agency Dissolution
On July 18, 2011, the California Redevelopment Association (“CRA”) and the League of
California Cities (“League”) filed a petition for writ of mandate with the California Supreme
Court, requesting the Court to declare unconstitutional two bills that were passed as part of
the 2011-12 State Budget, AB1X 26 and 27 (California Redevelopment Association v.
Matosantos). AB1X 26 dissolves redevelopment agencies effective October 1, 2011. AB1X
27 gave redevelopment agencies an option to avoid dissolution if it commits to making
defined payments for the benefit of the State, school districts and certain special districts. In
2011-12, these payments amounted to a state-wide total of $1.7 billion. In 2012-13 and
subsequent years, the payments totaled $400 million, annually. Each city or county’s share
of these payments was determined based on its proportionate share of state-wide tax
increment.
On August 17, 2011 the Supreme Court issued a stay of the implementation of AB1X 26 and
27 which allowed a redevelopment agency to continue if it adopted an AB1X 27 ordinance.
However, because of the effect of the stay order, the authority for the Redevelopment
Agency to engage in most activities was suspended.
The Supreme Court heard oral arguments on November 10, 2011 and on
December 29, 2011 announced its decision in (California Redevelopment Association v.
Matosantos). The court upheld AB1X 26 which eliminates redevelopment agencies, but
invalidated in its entirety AB1X 27 which allowed redevelopment agencies to continue as
long as they made the required payments. AB1X26 established deadlines for the process of
Redevelopment Agency dissolution and the handling of existing obligations. The Court
extended certain deadlines of AB1X 26 in its ruling by four months. The full text of AB1X 26
may be obtained from the California legislative information website maintained by the
Legislative Counsel of the State of California at: http://www.leginfo.ca.gov/bilinfo.html.
72
THIS PAGE INTENTIONALLY LEFT BLANK
73
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments 1,191,224$1,465,062$1,296,423$-$
Receivables:
Accounts -26,626 1,344 130,136
Taxes 145,760 ---
Notes and loans 2,215 -- 352,131
Accrued interest 794 1,219 1,053 -
Prepaid costs ----
Deposits --465 -
Due from other funds ----
Land held for resale ----
Restricted assets:
Cash and investments ----
Cash and investments with fiscal agents ----
Total Assets 1,339,993$1,492,907$1,299,285$482,267$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 133,587$ 26,890$ 13,133$ 16,300$
Accrued liabilities 27,478 14,480 8,221 3,377
Deferred revenues --- 349,718
Unearned revenues ----
Deposits payable ----
Due to other funds --- 127,470
Advances from other funds ----
Total Liabilities 161,065 41,370 21,354 496,865
Fund Balances:
Nonspendable:
Prepaid costs ----
Land held for resale ----
Notes and loans 2,215 -- 352,131
Deposits --465 -
Restricted for:
Community development projects 1,176,713 1,451,537 1,277,466 -
Public safety ----
Public works ----
Capital Projects ----
Debt service ----
Unassigned - - - (366,729)
Total Fund Balances 1,178,928 1,451,537 1,277,931 (14,598)
Total Liabilities and Fund Balances 1,339,993$1,492,907$1,299,285$482,267$
Special Revenue Funds
State
Gasoline Tax Proposition A Proposition C
Community
Development
Block Grant
74
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from 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
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Deposits
Restricted for:
Community development projects
Public safety
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
(Continued)
3,580$ 1,272,349$155,434$ 1,107,608$
18,445 40,796 11,599 264,657
----
----
-1,142 118 -
-424 --
----
----
----
----
----
22,025$ 1,314,711$ 167,151$ 1,372,265$
9,662$ 43,448$ 2,223$ 40,610$
12,363 4,490 5 3,845
---17,395
---50,983
----
----
----
22,025 47,938 2,228 112,833
-424 --
----
----
----
- 1,266,349 --
--- 1,259,432
----
-- 164,923 -
----
----
- 1,266,773 164,923 1,259,432
22,025$ 1,314,711$ 167,151$ 1,372,265$
Special Revenue Funds
Senior
Nutrition
Public Benefit
Program
Air Quality
Improvement
Grants and
Seizure
75
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from 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
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Deposits
Restricted for:
Community development projects
Public safety
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
91,044$ -$ 620,803$ -$
12,706 -450 -
-- 114,252 -
----
--691 -
---1,969
----
----
----
----
----
103,750$ -$ 736,196$ 1,969$
-$ -$ 37,103$ -$
--5,278 -
----
----
----
---1,969
----
--42,381 1,969
---1,969
----
----
----
----
103,750 ---
----
-- 693,815 -
----
---(1,969)
103,750 - 693,815 -
103,750$ -$ 736,196$ 1,969$
Special Revenue Funds
Supplemental
Law
Enforcement Fire Safety
Monrovia
Nursery
Employee
Benefits
76
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from 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
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Deposits
Restricted for:
Community development projects
Public safety
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
(Continued)
712,979$ 1,296,306$ 832,118$ 729,194$
-- 163,900 -
----
----
-1,046 720 530
----
----
----
----
----
----
712,979$ 1,297,352$ 996,738$ 729,724$
-$ -$ 73,342$ -$
--257 -
----
----
----
----
----
--73,599 -
----
----
----
----
- 1,297,352 --
----
----
712,979 - 923,139 729,724
----
----
712,979 1,297,352 923,139 729,724
712,979$ 1,297,352$ 996,738$ 729,724$
Special Revenue Funds
Utility
Mitigation Highway 39 LACMTA Measure R
77
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from 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
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Deposits
Restricted for:
Community development projects
Public safety
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
344,120$ 1,038,465$ 3,243$ 717,124$
7,589 ---
----
1,384 ---
-838 2 -
65 ---
----
----
----
---30,876
----
353,158$ 1,039,303$ 3,245$ 748,000$
4,963$ -$ -$ -$
13,984 ---
----
----
----
----
--- 750,000
18,947 -- 750,000
65 ---
----
1,384 ---
----
----
----
----
332,762 1,039,303 3,245 -
----
---(2,000)
334,211 1,039,303 3,245 (2,000)
353,158$ 1,039,303$ 3,245$ 748,000$
Special Revenue Funds Capital Projects Funds
AB939 Fee
Rosedale
Traffic
Mitigation Park in-lieu
Capital
Projects
78
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from 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
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Deposits
Restricted for:
Community development projects
Public safety
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Debt Service
Funds
Total
Governmental
Funds
1,108,110$2,437,702$-$ 16,422,888$
-30,521 - 708,769
--- 260,012
- 876,239 - 1,231,969
897 -8 9,058
---2,458
---465
- 8,032,840 - 8,032,840
- 3,001,981 - 3,001,981
---30,876
-- 482,540 482,540
1,109,007$14,379,283$482,548$ 30,183,856$
68,500$ 110,872$ -$ 580,633$
-52,731 - 146,509
- 791,858 - 1,158,971
---50,983
-15,000 -15,000
- 3,507,634 - 3,637,073
- 474,752 - 1,224,752
68,500 4,952,847 - 6,813,921
---2,458
- 3,001,981 - 3,001,981
-84,381 - 440,111
---465
1,040,507 -- 7,509,924
--- 1,363,182
----
- 6,340,074 - 10,939,964
-- 482,548 482,548
--- (370,698)
1,040,507 9,426,436 482,548 23,369,935
1,109,007$14,379,283$482,548$ 30,183,856$
Capital Projects Funds
Public Works
Endowment
Capital
Projects RDA
Public
Financing
Authority
79
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Revenues:
Taxes -$ 661,793$ 549,117$ -$
Intergovernmental 1,248,425 74,470 - 464,432
Charges for services -21,474 89,479 -
Use of money and property 21,867 24,150 20,187 -
Contributions ----
Miscellaneous 33 1,753 --
Total Revenues 1,270,325 783,640 658,783 464,432
Expenditures:
Current:
General government ----
Public safety ----
Community development --- 424,983
Parks and recreation 58,705 ---
Public works 1,259,066 879,562 542,847 -
Capital outlay 669,759 -41,550 56,455
Debt service:
Principal retirement ----
Interest and fiscal charges ----
Total Expenditures 1,987,530 879,562 584,397 481,438
Excess (Deficiency) of Revenues
Over (Under) Expenditures (717,205) (95,922)74,386 (17,006)
Other Financing Sources (Uses):
Transfers in ----
Transfers out (122,771)---
Total Other Financing Sources
(Uses)(122,771)---
Net Change in Fund Balances (839,976) (95,922)74,386 (17,006)
Fund Balances, Beginning of Year 2,021,323 1,547,459 1,208,671 2,408
Restatements (2,419)-(5,126)-
Fund Balances, Beginning of Year, as Restated 2,018,904 1,547,459 1,203,545 2,408
Fund Balances, End of Year 1,178,928$1,451,537$1,277,931$(14,598)$
State Gasoline
Tax Proposition A Proposition C
Community
Development
Block Grant
Special Revenue Funds
80
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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)
-$ -$ -$ -$
114,402 -53,822 1,327,581
- 631,627 21,421 35,263
-26,481 2,052 12,671
81,711 --13,027
---5,845
196,113 658,108 77,295 1,394,387
- 222,656 - 145,080
--- 211,657
- 971,082 --
333,322 --33,430
--40,366 14,878
-65,508 - 956,812
----
----
333,322 1,259,246 40,366 1,361,857
(137,209) (601,138)36,929 32,530
137,209 -1,800 124,172
---(1,401)
137,209 -1,800 122,771
- (601,138)38,729 155,301
- 1,867,911 126,194 1,104,131
----
- 1,867,911 126,194 1,104,131
-$ 1,266,773$ 164,923$ 1,259,432$
Air Quality
Improvement
Grants and
Seizure
Senior
Nutrition
Public Benefit
Program
Special Revenue Funds
81
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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
-$ -$ -$ -$
100,000 ---
-52,332 362,303 -
1,277 -(93,052)-
----
----
101,277 52,332 269,251 -
---23,633
72,224 3,738,592 --
----
----
-- 167,467 -
5,249 -94,020 -
----
----
77,473 3,738,592 261,487 23,633
23,804 (3,686,260)7,764 (23,633)
- 3,686,260 -23,633
-- (5,649,071)-
- 3,686,260 (5,649,071)23,633
23,804 - (5,641,307)-
79,946 - 6,335,122 -
----
79,946 - 6,335,122 -
103,750$ -$ 693,815$ -$
Monrovia
Nursery
Employee
Benefits
Supplemental
Law
Enforcement Fire Safety
Special Revenue Funds
82
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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)
-$ -$ -$ 410,317$
-- 163,900 -
----
-20,448 14,132 7,838
----
----
-20,448 178,032 418,155
----
----
----
----
-- 139,055 -
----
----
----
-- 139,055 -
-20,448 38,977 418,155
----
----
----
-20,448 38,977 418,155
712,979 1,276,904 884,162 311,569
----
712,979 1,276,904 884,162 311,569
712,979$ 1,297,352$ 923,139$ 729,724$
Utility
Mitigation Highway 39 LACMTA Measure R
Special Revenue Funds
83
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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
-$ -$ -$ -$
--2,400 -
200,113 ---
-28,604 35 -
----
----
200,113 28,604 2,435 -
----
----
----
----
209,263 ---
---2,000
----
----
209,263 --2,000
(9,150)28,604 2,435 (2,000)
- 1,010,699 -65,670
----
- 1,010,699 -65,670
(9,150) 1,039,303 2,435 63,670
343,361 -810 (65,670)
----
343,361 -810 (65,670)
334,211$ 1,039,303$ 3,245$ (2,000)$
Park in-lieu
Capital
Projects AB939 Fee
Rosedale
Traffic
Mitigation
Special Revenue Funds Capital Projects Funds
84
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
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
Debt Service
Funds
Total
Governmental
Funds
-$ -$ -$ 1,621,227$
--- 3,549,432
--- 1,414,012
17,793 140,562 97 245,142
---94,738
-40,454 -48,085
17,793 181,016 97 6,972,636
- 1,372,740 4,625 1,768,734
--- 4,022,473
- 349,150 - 1,745,215
--- 425,457
--- 3,252,504
87,425 715,224 - 2,694,002
-- 225,000 225,000
- 451,578 134,559 586,137
87,425 2,888,692 364,184 14,719,522
(69,632) (2,707,676) (364,087) (7,746,886)
- 2,481,559 364,087 7,895,089
- (7,410,124)- (13,183,367)
- (4,928,565) 364,087 (5,288,278)
(69,632) (7,636,241)- (13,035,164)
1,110,139 17,061,941 482,548 36,411,908
-736 -(6,809)
1,110,139 17,062,677 482,548 36,405,099
1,040,507$ 9,426,436$ 482,548$ 23,369,935$
Capital
Projects RDA
Public
Financing
Authority
Public Works
Endowment
Capital Projects Funds
85
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE TAX
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 2,018,904$ 2,018,904$ 2,018,904$ -$
Resources (Inflows):
Intergovernmental 1,250,555 1,908,641 1,248,425 (660,216)
Use of money and property 20,000 20,000 21,867 1,867
Miscellaneous - - 33 33
Amounts Available for Appropriation 3,289,459 3,947,545 3,289,229 (658,316)
Charges to Appropriation (Outflow):
Parks and recreation 59,000 59,000 58,705 295
Public works 1,271,315 1,273,865 1,259,066 14,799
Capital outlay - 817,660 669,759 147,901
Transfers out (56,550) (42,800) 122,771 (165,571)
Total Charges to Appropriations 1,273,765 2,107,725 2,110,301 (2,576)
Budgetary Fund Balance, June 30 2,015,694$1,839,820$1,178,928$(660,892)$
86
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,547,459$ 1,547,459$ 1,547,459$ -$
Resources (Inflows):
Taxes 659,500 696,500 661,793 (34,707)
Intergovernmental 103,000 103,000 74,470 (28,530)
Charges for services 22,910 22,910 21,474 (1,436)
Use of money and property 65,000 65,000 24,150 (40,850)
Miscellaneous - - 1,753 1,753
Amounts Available for Appropriation 2,397,869 2,434,869 2,331,099 (103,770)
Charges to Appropriation (Outflow):
Public works 939,320 978,970 879,562 99,408
Total Charges to Appropriations 939,320 978,970 879,562 99,408
Budgetary Fund Balance, June 30 1,458,549$ 1,455,899$ 1,451,537$ (4,362)$
87
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 1,203,545$ 1,203,545$ 1,203,545$ -$
Resources (Inflows):
Taxes 547,040 650,940 549,117 (101,823)
Charges for services 94,665 94,665 89,479 (5,186)
Use of money and property 60,380 60,380 20,187 (40,193)
Amounts Available for Appropriation 1,905,630 2,009,530 1,862,328 (147,202)
Charges to Appropriation (Outflow):
Public works 623,340 727,160 542,847 184,313
Capital outlay - 101,900 41,550 60,350
Transfers out - 49,266 - 49,266
Total Charges to Appropriations 623,340 878,326 584,397 293,929
Budgetary Fund Balance, June 30 1,282,290$ 1,131,204$ 1,277,931$ 146,727$
88
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,408$ 2,408$ 2,408$ -$
Resources (Inflows):
Intergovernmental 634,135 634,135 464,432 (169,703)
Amounts Available for Appropriation 636,543 636,543 466,840 (169,703)
Charges to Appropriation (Outflow):
Community development 451,825 452,385 424,983 27,402
Capital outlay - 182,300 56,455 125,845
Total Charges to Appropriations 451,825 634,685 481,438 153,247
Budgetary Fund Balance, June 30 184,718$ 1,858$ (14,598)$ (16,456)$
89
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SENIOR NUTRITION
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 112,775 157,435 114,402 (43,033)
Contributions 84,000 84,000 81,711 (2,289)
Transfers in 120,695 120,695 137,209 16,514
Amounts Available for Appropriation 317,470 362,130 333,322 (28,808)
Charges to Appropriation (Outflow):
Parks and recreation 317,470 326,790 333,322 (6,532)
Total Charges to Appropriations 317,470 326,790 333,322 (6,532)
Budgetary Fund Balance, June 30 -$ 35,340$ -$ (35,340)$
90
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC BENEFIT PROGRAM
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,867,911$ 1,867,911$ 1,867,911$ -$
Resources (Inflows):
Charges for services 901,000 901,000 631,627 (269,373)
Use of money and property 50,000 50,000 26,481 (23,519)
Amounts Available for Appropriation 2,818,911 2,818,911 2,526,019 (292,892)
Charges to Appropriation (Outflow):
General government 269,565 211,885 222,656 (10,771)
Community development 840,830 1,000,830 971,082 29,748
Capital outlay - 86,953 65,508 21,445
Total Charges to Appropriations 1,110,395 1,299,668 1,259,246 40,422
Budgetary Fund Balance, June 30 1,708,516$ 1,519,243$ 1,266,773$ (252,470)$
91
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 126,194$ 126,194$ 126,194$ -$
Resources (Inflows):
Intergovernmental 55,340 55,465 53,822 (1,643)
Charges for services 21,375 21,375 21,421 46
Use of money and property 5,000 5,000 2,052 (2,948)
Transfers in - - 1,800 1,800
Amounts Available for Appropriation 207,909 208,034 205,289 (2,745)
Charges to Appropriation (Outflow):
Public works 56,705 48,830 40,366 8,464
Total Charges to Appropriations 56,705 48,830 40,366 8,464
Budgetary Fund Balance, June 30 151,204$ 159,204$ 164,923$ 5,719$
92
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
GRANTS AND SEIZURE
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,104,131$ 1,104,131$ 1,104,131$ -$
Resources (Inflows):
Intergovernmental 144,720 643,356 1,327,581 684,225
Charges for services - 12,600 35,263 22,663
Use of money and property 12,000 12,000 12,671 671
Contributions 7,150 17,150 13,027 (4,123)
Miscellaneous 5,600 5,600 5,845 245
Transfers in - (13,750) 124,172 137,922
Amounts Available for Appropriation 1,273,601 1,781,087 2,622,690 841,603
Charges to Appropriation (Outflow):
General government 118,350 200,540 145,080 55,460
Public safety 275,905 430,139 211,657 218,482
Parks and recreation 80,700 93,700 33,430 60,270
Public works 8,870 37,970 14,878 23,092
Capital outlay 115,875 1,187,454 956,812 230,642
Transfers out - - 1,401 (1,401)
Total Charges to Appropriations 599,700 1,949,803 1,363,258 586,545
Budgetary Fund Balance, June 30 673,901$ (168,716)$ 1,259,432$ 1,428,148$
93
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SUPPLEMENTAL LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 79,946$ 79,946$ 79,946$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 100,000 -
Use of money and property - - 1,277 1,277
Amounts Available for Appropriation 179,946 179,946 181,223 1,277
Charges to Appropriation (Outflow):
Public safety 118,025 88,222 72,224 15,998
Capital outlay 60,390 91,724 5,249 86,475
Total Charges to Appropriations 178,415 179,946 77,473 102,473
Budgetary Fund Balance, June 30 1,531$ -$ 103,750$ 103,750$
94
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
FIRE SAFETY
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Charges for services 119,500 119,500 52,332 (67,168)
Transfers in 3,619,095 3,619,095 3,686,260 67,165
Amounts Available for Appropriation 3,738,595 3,738,595 3,738,592 (3)
Charges to Appropriation (Outflow):
Public safety 3,738,595 3,738,595 3,738,592 3
Total Charges to Appropriations 3,738,595 3,738,595 3,738,592 3
Budgetary Fund Balance, June 30 -$ -$ -$ -$
95
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MONROVIA NURSERY
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,335,122$ 6,335,122$ 6,335,122$ -$
Resources (Inflows):
Charges for services 366,000 366,000 362,303 (3,697)
Use of money and property - - (93,052) (93,052)
Miscellaneous - - - -
Amounts Available for Appropriation 6,701,122 6,701,122 6,604,373 (96,749)
Charges to Appropriation (Outflow):
Public works 212,673 249,713 167,467 82,246
Capital outlay - 951,722 94,020 857,702
Transfers out 149,820 149,820 5,649,071 (5,499,251)
Total Charges to Appropriations 362,493 1,351,255 5,910,558 (4,559,303)
Budgetary Fund Balance, June 30 6,338,629$ 5,349,867$ 693,815$ (4,656,052)$
96
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
EMPLOYEE BENEFITS
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Transfers in 27,320 27,320 23,633 (3,687)
Amounts Available for Appropriation 27,320 27,320 23,633 (3,687)
Charges to Appropriation (Outflow):
General government 27,320 27,320 23,633 3,687
Total Charges to Appropriations 27,320 27,320 23,633 3,687
Budgetary Fund Balance, June 30 -$ -$ -$ -$
97
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
UTILITY MITIGATION
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 712,979$ 712,979$ 712,979$ -$
Resources (Inflows):
Transfers in 195,000 195,000 - (195,000)
Amounts Available for Appropriation 907,979 907,979 712,979 (195,000)
Budgetary Fund Balance, June 30 907,979$ 907,979$ 712,979$ (195,000)$
98
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
HIGHWAY 39
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,276,904$ 1,276,904$ 1,276,904$ -$
Resources (Inflows):
Use of money and property - - 20,448 20,448
Amounts Available for Appropriation 1,276,904 1,276,904 1,297,352 20,448
Budgetary Fund Balance, June 30 1,276,904$ 1,276,904$ 1,297,352$ 20,448$
99
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
LACMTA
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 884,162$ 884,162$ 884,162$ -$
Resources (Inflows):
Intergovernmental 20,000 183,900 163,900 (20,000)
Use of money and property - - 14,132 14,132
Amounts Available for Appropriation 904,162 1,068,062 1,062,194 (5,868)
Charges to Appropriation (Outflow):
Public works - 1,012,862 139,055 873,807
Transfers out - 49,266 - 49,266
Total Charges to Appropriations - 1,062,128 139,055 923,073
Budgetary Fund Balance, June 30 904,162$ 5,934$ 923,139$ 917,205$
100
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 311,569$ 311,569$ 311,569$ -$
Resources (Inflows):
Taxes 428,015 428,015 410,317 (17,698)
Use of money and property - - 7,838 7,838
Amounts Available for Appropriation 739,584 739,584 729,724 (9,860)
Charges to Appropriation (Outflow):
Transfers out 56,550 56,550 - 56,550
Total Charges to Appropriations 56,550 56,550 - 56,550
Budgetary Fund Balance, June 30 683,034$ 683,034$ 729,724$ 46,690$
101
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AB939 FEE
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 343,361$ 343,361$ 343,361$ -$
Resources (Inflows):
Charges for services 206,700 206,700 200,113 (6,587)
Use of money and property 3,000 3,000 - (3,000)
Amounts Available for Appropriation 553,061 553,061 543,474 (9,587)
Charges to Appropriation (Outflow):
Public works 164,115 332,178 209,263 122,915
Total Charges to Appropriations 164,115 332,178 209,263 122,915
Budgetary Fund Balance, June 30 388,946$ 220,883$ 334,211$ 113,328$
102
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PARK IN-LIEU
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 810$ 810$ 810$ -$
Resources (Inflows):
Intergovernmental - 5,000 2,400 (2,600)
Use of money and property 100 100 35 (65)
Amounts Available for Appropriation 910 5,910 3,245 (2,665)
Budgetary Fund Balance, June 30 910$ 5,910$ 3,245$ (2,665)$
103
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC WORKS ENDOWMENT
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,110,139$ 1,110,139$ 1,110,139$ -$
Resources (Inflows):
Use of money and property - - 17,793 17,793
Amounts Available for Appropriation 1,110,139 1,110,139 1,127,932 17,793
Charges to Appropriation (Outflow):
Capital outlay - 134,950 87,425 47,525
Transfers out - 19,040 - 19,040
Total Charges to Appropriations - 153,990 87,425 66,565
Budgetary Fund Balance, June 30 1,110,139$ 956,149$ 1,040,507$ 84,358$
104
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS REDEVELOPMENT AGENCY
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 17,062,677$ 17,062,677$ 17,062,677$ -$
Resources (Inflows):
Use of money and property 220,555 220,555 140,562 (79,993)
Miscellaneous 9,015,550 9,015,550 40,454 (8,975,096)
Transfers in 1,552,965 1,552,965 2,481,559 928,594
Amounts Available for Appropriation 27,851,747 27,851,747 19,725,252 (8,126,495)
Charges to Appropriation (Outflow):
General government 1,746,585 1,762,885 1,372,740 390,145
Community development 1,000,500 1,245,240 349,150 896,090
Capital outlay 1,982,500 2,722,836 715,224 2,007,612
Debt service:
Interest and fiscal charges 200,000 200,000 451,578 (251,578)
Transfers out 2,170,820 2,220,820 7,410,124 (5,189,304)
Total Charges to Appropriations 7,100,405 8,151,781 10,298,816 (2,147,035)
Budgetary Fund Balance, June 30 20,751,342$19,699,966$9,426,436$ (10,273,530)$
105
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 482,548$ 482,548$ 482,548$ -$
Resources (Inflows):
Use of money and property 4,560 4,560 97 (4,463)
Transfers in 364,060 364,060 364,087 27
Amounts Available for Appropriation 851,168 851,168 846,732 (4,436)
Charges to Appropriation (Outflow):
General government 4,500 4,500 4,625 (125)
Debt service:
Principal retirement 225,000 225,000 225,000 -
Interest and fiscal charges 134,560 134,560 134,559 1
Total Charges to Appropriations 364,060 364,060 364,184 (124)
Budgetary Fund Balance, June 30 487,108$ 487,108$ 482,548$ (4,560)$
106
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE REDEVELOPMENT AGENCY
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated (28,980,525)$ (28,980,525)$ (28,980,525)$ -$
Resources (Inflows):
Taxes 5,937,465 5,937,465 6,187,357 249,892
Use of money and property 60,195 60,195 145,430 85,235
Miscellaneous - - 49 49
Transfers in 6,330,220 6,330,220 4,234,093 (2,096,127)
Other debts issued 2,769,310 2,769,310 986,314 (1,782,996)
Amounts Available for Appropriation (13,883,335) (13,883,335) (17,427,282) (3,543,947)
Charges to Appropriation (Outflow):
General government 1,538,850 1,538,850 1,005,991 532,859
Debt service:
Principal retirement 1,469,275 1,469,275 1,714,212 (244,937)
Interest and fiscal charges 6,180,425 6,180,425 6,228,750 (48,325)
Transfers out 5,889,970 5,889,970 3,356,303 2,533,667
Total Charges to Appropriations 15,078,520 15,078,520 12,305,256 2,773,264
Budgetary Fund Balance, June 30 (28,961,855)$(28,961,855)$(29,732,538)$ (770,683)$
107
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2011
Totals
Assets:
Current:
Cash and investments 2,185,213$ 107,102$ 2,292,315$
Receivables:
Accounts 190,619 391,037 581,656
Accrued interest 1,825 - 1,825
Restricted:
Cash with fiscal agent 293,120 - 293,120
Total Current Assets 2,670,777 498,139 3,168,916
Noncurrent:
Deferred Charges 79,775 - 79,775
Capital assets - net of accumulated depreciation 9,138,091 - 9,138,091
Total Noncurrent Assets 9,217,866 - 9,217,866
Total Assets 11,888,643$ 498,139$ 12,386,782$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 72,702$ 482,112$ 554,814$
Accrued liabilities 33,863 - 33,863
Accrued interest 42,979 - 42,979
Accrued compensated absences 78,025 - 78,025
Bonds, notes, and capital leases 115,000 - 115,000
Total Current Liabilities 342,569 482,112 824,681
Noncurrent:
Accrued compensated absences 19,927 - 19,927
Bonds, notes, and capital leases 1,643,104 - 1,643,104
Total Noncurrent Liabilities 1,663,031 - 1,663,031
Total Liabilities 2,005,600 482,112 2,487,712
Net Assets:
Invested in capital assets, net of related debt 7,379,987 - 7,379,987
Restricted for debt service 293,120 - 293,120
Unrestricted 2,209,936 16,027 2,225,963
Total Net Assets 9,883,043 16,027 9,899,070
Total Liabilities and Net Assets 11,888,643$ 498,139$ 12,386,782$
Refuse
Contract
Sewer/
Wastewater
108
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Totals
Operating Revenues:
Sales and service charges 1,615,840$ 3,062,700$ 4,678,540$
Miscellaneous 1,200 3,285 4,485
Total Operating Revenues 1,617,040 3,065,985 4,683,025
Operating Expenses:
Treatment 1,510,740 - 1,510,740
Refuse collection - 2,962,395 2,962,395
Depreciation expense 321,643 -321,643
Total Operating Expenses 1,832,383 2,962,395 4,794,778
Operating Income (Loss)(215,343) 103,590 (111,753)
Nonoperating Revenues (Expenses):
Taxes - 571,036 571,036
Interest revenue 54,596 -54,596
Interest expense (116,844)- (116,844)
Special franchise fees (33,014)-(33,014)
Gain (loss) on disposal of capital assets 1,350 -1,350
Total Nonoperating
Revenues (Expenses)(93,912) 571,036 477,124
Income (Loss) Before Transfers (309,255) 674,626 365,371
Transfers out (140,000) (541,400) (681,400)
Changes in Net Assets (449,255) 133,226 (316,029)
Net Assets:
Beginning of Year 10,332,298 (117,199) 10,215,099
End of Fiscal Year 9,883,043$ 16,027$ 9,899,070$
Refuse
Contract
Sewer/
Wastewater
109
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Totals
Cash Flows from Operating Activities:
Cash received from customers and users 1,615,924$ 3,056,325$ 4,672,249$
Cash paid to suppliers for goods and services (463,707) (2,956,079) (3,419,786)
Cash paid to employees for services (1,040,203) - (1,040,203)
Net Cash Provided (Used) by Operating Activities 112,014 100,246 212,260
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (140,000) (541,400) (681,400)
Repayment made to other funds - (22,780) (22,780)
Net Cash Provided (Used) by
Non-Capital Financing Activities (140,000) (564,180) (704,180)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (42,380) - (42,380)
Principal paid on capital debt (109,810)- (109,810)
Interest paid on capital debt (111,502) - (111,502)
Special franchise fees (33,014) - (33,014)
Taxes - 571,036 571,036
Proceeds from sales of capital assets 1,350 - 1,350
Net Cash Provided (Used) by
Capital and Related Financing Activities (295,356) 571,036 275,680
Cash Flows from Investing Activities:
Interest received 54,375 - 54,375
Net Cash Provided (Used) by
Investing Activities 54,375 - 54,375
Net Increase (Decrease) in Cash
and Cash Equivalents (268,967) 107,102 (161,865)
Cash and Cash Equivalents at Beginning of Year 2,747,300 - 2,747,300
Cash and Cash Equivalents at End of Year 2,478,333$ 107,102$ 2,585,435$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)(215,343)$ 103,590$ (111,753)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 321,643 - 321,643
(Increase) decrease in accounts receivable (1,116) (9,660) (10,776)
Increase (decrease) in accounts payable 22,037 6,316 28,353
Increase (decrease) in accrued liabilities (13,523) - (13,523)
Increase (decrease) in compensated absences (1,684) - (1,684)
Total Adjustments 327,357 (3,344) 324,013
Net Cash Provided (Used) by
Operating Activities 112,014$ 100,246$ 212,260$
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets 1,350$ -$ 1,350$
Amortization of bond discount (5,190)- (5,190)
Amortization of deferred debt issuance costs 7,978 - 7,978
Sewer/
Wastewater
Refuse
Contract
110
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111
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2011
Assets:
Current:
Cash and investments 407,042$ -$ -$ 290,770$
Receivables:
Accounts - 47,253 - -
Notes and loans 5,597 - - -
Accrued interest 23,082 1,194 - 228
Prepaid costs 8,993 1,455 - -
Due from other funds 670,413 2,615,253 - -
Total Current Assets 1,115,127 2,665,155 - 290,998
Noncurrent:
Advances to other funds - - - -
Capital assets - net of accumulated depreciation 764,460 - 45,935 759,189
Total Noncurrent Assets 764,460 - 45,935 759,189
Total Assets 1,879,587$ 2,665,155$ 45,935$ 1,050,187$
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable 178,276$ 347,478$ 2,209$ -$
Accrued liabilities 78,956 24,873 2,997 -
Deposits payable 1,423 - - -
Due to other funds - - 28,592 -
Accrued compensated absences 233,667 6,893 8,973 -
Accrued claims and judgments - 1,006,169 - -
Total Current Liabilities 492,322 1,385,413 42,771 -
Noncurrent:
Accrued compensated absences 23,181 2,549 3,164 -
Accrued claims and judgments - 874,597 - -
Total Noncurrent Liabilities 23,181 877,146 3,164 -
Total Liabilities 515,503 2,262,559 45,935 -
Net Assets:
Invested in capital assets, net of related debt 764,460 - 45,935 759,189
Unrestricted 599,624 402,596 (45,935) 290,998
Total Net Assets 1,364,084 402,596 - 1,050,187
Total Liabilities and Net Assets 1,879,587$ 2,665,155$ 45,935$ 1,050,187$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
112
CITY OF AZUSA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2011
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
-$ 213,715$ 911,527$
- - 47,253
- 9,682 15,279
- - 24,504
- 69,188 79,636
- - 3,285,666
- 292,585 4,363,865
20,346,401 - 20,346,401
- - 1,569,584
20,346,401 - 21,915,985
20,346,401$ 292,585$ 26,279,850$
-$ 40,925$ 568,888$
- 38,170 144,996
- - 1,423
- - 28,592
- 115,355 364,888
- - 1,006,169
- 194,450 2,114,956
- 98,135 127,029
- - 874,597
- 98,135 1,001,626
- 292,585 3,116,582
- - 1,569,584
20,346,401 - 21,593,684
20,346,401 - 23,163,268
20,346,401$ 292,585$ 26,279,850$
Intra-
Governmental
Loan Fund IT Services
113
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Operating Revenues:
Sales and service charges 6,299,803$ 2,041,268$ 161,217$ -$
Miscellaneous -280,017 --
Total Operating Revenues 6,299,803 2,321,285 161,217 -
Operating Expenses:
Administration and general 5,323,753 1,447,216 116,749 -
Source of supply 169,122 -32,589 -
Claims expense 394,085 880,517 --
Depreciation expense 176,012 -4,929 142,941
Total Operating Expenses 6,062,972 2,327,733 154,267 142,941
Operating Income (Loss)236,831 (6,448)6,950 (142,941)
Nonoperating Revenues (Expenses):
Interest revenue -20,833 -5,210
Gain (loss) on disposal of capital assets - - - (107,991)
Total Nonoperating
Revenues (Expenses)-20,833 - (102,781)
Income (Loss) Before Transfers 236,831 14,385 6,950 (245,722)
Transfers in -586,484 --
Transfers out (244,311)---
Changes in Net Assets (7,480) 600,869 6,950 (245,722)
Net Assets:
Beginning of Year 1,371,564 (198,273)(6,950) 1,295,909
End of Fiscal Year 1,364,084$ 402,596$ -$ 1,050,187$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
114
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Operating Revenues:
Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Administration and general
Source of supply
Claims expense
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
End of Fiscal Year
Totals
609,575$ 1,922,001$ 11,033,864$
--280,017
609,575 1,922,001 11,313,881
- 1,771,240 8,658,958
-165,129 366,840
-- 1,274,602
--323,882
- 1,936,369 10,624,282
609,575 (14,368) 689,599
1,268,683 - 1,294,726
-- (107,991)
1,268,683 - 1,186,735
1,878,258 (14,368) 1,876,334
-11,500 597,984
-- (244,311)
1,878,258 (2,868) 2,230,007
18,468,143 2,868 20,933,261
20,346,401$ -$ 23,163,268$
Intra-
Governmental
Loan Fund IT Services
115
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Cash Flows from Operating Activities:
Cash received from customers and users 6,299,803$ 2,292,556$ 161,217$ -$
Cash paid to suppliers for goods and services (539,313) (1,348,996) (36,576) (5,371)
Cash paid to employees for services (5,393,061) (1,431,926) (115,279) -
Net Cash Provided (Used) by Operating Activities 367,429 (488,366) 9,362 (5,371)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (244,311) - - -
Cash transfers in - 586,484 - -
Cash due from other funds (670,413) (2,577,054)- -
Repayment made to other funds - - (9,362) -
Advance to other funds - - - -
Net Cash Provided (Used) by
Non-Capital Financing Activities (914,724) (1,990,570) (9,362) -
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (227,093)- - (30,475)
Proceeds from sales of capital assets (107,991)
Net Cash Provided (Used) by
Capital and Related Financing Activities (227,093) - - (138,466)
Cash Flows from Investing Activities:
Repayment of loans (967) 249 - -
Interest received (7,612) 20,867 - 5,241
Net Cash Provided (Used) by
Investing Activities (8,579) 21,116 - 5,241
Net Increase (Decrease) in Cash
and Cash Equivalents (782,967) (2,457,820) - (138,596)
Cash and Cash Equivalents at Beginning of Year 1,190,009 2,457,820 - 429,366
Cash and Cash Equivalents at End of Year 407,042$ -$ -$ 290,770$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)236,831$ (6,448)$ 6,950$ (142,941)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 176,012 - 4,929 142,941
(Increase) decrease in accounts receivable - (28,729) - -
(Increase) decrease in prepaid expense (7,965) 3,813 - -
Increase (decrease) in accounts payable 31,859 (50,324) (3,987) (5,371)
Increase (decrease) in accrued liabilities (42,608) 16,159 (865) -
Increase (decrease) in claims and judgments - (421,968) - -
Increase (decrease) in compensated absences (26,700) (869)2,335 -
Total Adjustments 130,598 (481,918) 2,412 137,570
Net Cash Provided (Used) by
Operating Activities 367,429$ (488,366)$ 9,362$ (5,371)$
Non-Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets -$ -$ -$ 107,991$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
116
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers 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
Proceeds from sales 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 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
609,575$ 1,922,001$ 11,285,152$
- (212,675) (2,142,931)
- (1,773,510) (8,713,776)
609,575 (64,184) 428,445
- - (244,311)
- 11,500 597,984
- - (3,247,467)
- - (9,362)
(1,878,258)- (1,878,258)
(1,878,258) 11,500 (4,781,414)
- - (257,568)
(107,991)
- - (365,559)
- (8,795) (9,513)
1,268,683 - 1,287,179
1,268,683 (8,795) 1,277,666
- (61,479) (3,440,862)
- 275,194 4,352,389
-$ 213,715$ 911,527$
609,575$ (14,368)$ 689,599$
- - 323,882
- - (28,729)
- (49,740) (53,892)
- 2,194 (25,629)
- (9,810) (37,124)
- - (421,968)
- 7,540 (17,694)
- (49,816) (261,154)
609,575$ (64,184)$ 428,445$
-$ -$ 107,991$
Intra-
Governmental
Loan Fund IT Services
117
CITY OF AZUSA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2011
Balance Balance
7/1/2010 Additions Deductions 6/30/2011
Deposit Trust
Assets:
Pooled cash and investments 2,821,799$ 9,225,073$ 10,307,109$ 1,739,763$
Receivables:
Accounts 5,000 6,700 10,000 1,700
Taxes 88,256 122,862 176,731 34,387
Total Assets 2,915,055$ 9,354,635$ 10,493,840$ 1,775,850$
Liabilities:
Accounts payable 2,861,184$ 560,081$ 1,677,898$ 1,743,367$
Accrued liabilities 10,102 11,398 16,677 4,823
Deposits payable 38,175 500 17,260 21,415
Due to other governments 5,594 5,594 4,943 6,245
Total Liabilities 2,915,055 $ 577,573 $ 1,716,778 $ 1,775,850 $
118
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
WATER - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Water
Operating Revenues:
Residential sales 9,640,301$
Commercial sales 3,461,006
Industrial sales 2,532,726
Fees 10,305
Other revenue 2,020,406
Total Operating Revenues 17,664,744
Operating Expenses:
Production 5,489,178
Transmission and distribution 2,455,421
Customer accounting and sales 4,028,244
Uncollectible accounts 57,507
Administrative and general 382,846
Depreciation 3,648,794
Total Operating Expenses 16,061,990
Operating Income (Loss)1,602,754
Nonoperating Revenues (Expenses):
Interest revenue 661,855
Interest expense (3,277,696)
Franchise and in-lieu-tax (341,033)
Total Nonoperating Revenues (Expenses)(2,956,874)
Net Income (Loss) Before Transfers (1,354,120)
Transfers in 303,634
Transfers out (513,030)
Net Income (1,563,516)
Net Assets:
Beginning of Fiscal Year 54,991,602
Restatements 135,841
Beginning of Fiscal Year, as restated 55,127,443
End of Fiscal Year 53,563,927$
119
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
LIGHT - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Light
Operating Revenues:
Sale/electricity - residential 10,605,804$
Sale/electricity - commercial and industrial 21,041,098
Sale/electricity - other 1,238,881
Sale/electricity - resale 5,919,793
Other revenue 616,652
Total Operating Revenues 39,422,228
Operating Expenses:
Purchase power 25,169,035
Transmission/dispatching 3,285,863
Operation and maintenance 3,109,718
Uncollectible accounts 84,031
Administration general expenditures 3,368,360
Depreciation 1,245,003
Total Operating Expenses 36,262,010
Operating Income 3,160,218
Nonoperating Revenues (Expenses):
Interest income 909,840
Interest expense (482,414)
Franchise and in-lieu-tax (3,339,256)
Gain (loss) on disposal of asset -
Total Nonoperating Revenues (Expenses)(2,911,830)
Net Income Before Transfers 248,388
Transfers Out (191,267)
Net Income 57,121
Net Assets:
Beginning of Fiscal Year 58,497,162
Restatements 19,092
Beginning of Fiscal Year, as restated 58,516,254
End of Fiscal Year 58,573,375$
120
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121
(Unaudited)
Financial Trends Page No.
123-127
Revenue Capacity
128-137
Debt Capacity
138-144
Demographic and Economic Information
145-147
Operating Information
148-150
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.
122
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$ 19,297,862$
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 35,312,033
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) (50,982,746)
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$ 3,627,149$
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$ 35,160,311$
net of related debt
Restricted - - 5,622,733 5,426,232 5,228,056 5,045,495 5,049,234 5,069,361 3,192,561
Unrestricted 101,755,211 58,615,104 58,567,909 64,855,723 69,437,708 67,473,534 64,014,418 61,221,682 85,047,584
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$ 124,987,542$ 123,400,456$
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$ 54,458,173$
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 38,504,594
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) 34,064,838
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$ 133,047,291$ 127,027,605$
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.
*This schedule is intended to eventually cover 10 years worth of data. The last nine years of data is available.
CITY OF AZUSA
Table 1 - Net Assets by Component
Last Nine Fiscal Years (accrual basis of accounting)*
Fiscal Year
12
3
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$ 3,855,810$
Public Safety 492,501 487,911 661,246 482,386 620,542 755,186 681,943 871,900 713,846
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 1,915,741
Parks and recreation 522,943 513,809 479,689 651,025 625,955 685,468 1,127,077 1,179,080 997,277
Public Works 2,687,277 2,818,250 350,006 217,389 168,218 168,657 203,280 368,275 364,910
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 3,651,491
Capital grants and contributions 271,853 90,663 4,632,500 820,744 497,905 468,279 286,875 654,467 109,226
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 11,608,301
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 16,144,130 17,779,417
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 39,189,980
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 1,615,840
Refuse contract -- 2,509,096 2,587,410 2,812,595 2,996,275 2,968,742 2,933,390 3,062,700
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 55,828,303 61,647,937
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$ 67,582,713$ 73,256,238$
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$ 12,198,991$
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 20,187,914
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 3,472,237
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 4,184,626
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 5,539,866
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 7,380,598
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 52,964,232
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 19,680,719
Electric 29,510,578 36,044,008 34,280,527 36,578,602 34,713,270 38,827,637 36,939,301 39,803,690 40,083,680
Sewer/Wastewater 901,849 965,977 1,075,063 1,267,327 1,604,557 1,653,043 1,995,785 1,986,142 1,982,241
Refuse contract -- 2,526,134 2,642,780 2,918,732 3,247,734 3,028,270 2,924,303 2,962,395
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 63,828,978 64,709,035
Total primary government
program expenses 81,735,850 91,088,268 88,275,272 92,356,783 102,722,382 110,725,520 115,270,818 119,611,672 117,673,267
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) (41,355,931)
Business-type activities 647,847 5,029,415 6,947,676 4,243,257 1,481,380 (5,235,553) (5,409,331) (8,000,675) (3,061,098)
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) (52,028,959) (44,417,029)
Fiscal Year
CITY OF AZUSA
Table 2 - Change in Net Assets
Last Nine Fiscal Years (accrual basis)
12
4
(Continued)
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$12,108,155$
Transient occupancy taxes 209,496 175,518 259,384 242,581 234,427 243,261 226,268 200,840 192,659
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 5,678,177
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 6,222,537
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 1,822,102
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 3,160,788
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 2,678,727
Motor vehicle in lieu-unrestricted 2,631,988 2,160,633 3,857,205 95,470 326,101 232,989 157,012 137,557 143,401
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 2,540,133
Other general revenues 186,413 (744,883) 37,884 131,917 373,063 2,702,680 707,536 441,956 854,945
Transfers 2,360,164 1,544,223 2,303,545 664,206 700,000 4,392,846 2,249,387 1,386,380 1,326,374
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 36,727,998
Business-type activities:
Property taxes,general purpose - - 501,297 638,821 594,065 631,036 586,254 555,121 571,036
Investment income 1,935,609 1,445,383 1,895,324 2,619,090 4,236,645 4,954,367 2,579,973 6,201,289 1,626,291
Gain on sale of assets 932 8,473 299,469 183,829 - (38,373) 797 2,306 1,350
Transfers (2,360,164) (1,544,223) (2,303,545) (664,206) (700,000) (4,392,846) (2,249,387) (1,386,380) (1,326,374)
Miscellaneous 3,953,851 2,369,747 895,727 273,296 2,676,882 1,841,306 1,230,835 1,336,168 358,891
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 6,708,504 1,231,194
Total general revenues 35,142,725 35,754,685 38,519,037 36,268,149 45,104,146 43,196,678 41,146,695 38,125,697 37,959,192
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) (4,627,933)
Business-type activities 4,178,075 7,308,795 8,235,948 7,294,087 8,288,972 (2,240,063) (3,260,859) (1,292,171) (1,829,904)
Total primary government 8,357,372$11,569,531$ 18,939,996$10,002,704$8,897,766$(125,934)$(5,754,156)$(13,903,262)$(6,457,837)$
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
Last Nine Fiscal Years (accrual basis)
12
5
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)
Unassigned
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$
2011
General fund:
Nonspendable 21,615,263$
Unassigned (5,311,304)
Total general fund:16,303,959$
All other governmental funds:
Nonspendable 14,892,551$
Restricted 23,297,599
Unassigned (32,625,038)
Total all other governmental funds:5,565,112$
The City of Azusa has elected to show only nine years of data for this schedule.
GASB Statement No 54 - Fund Balance Reporting and Government Fund Type Definition, was implemented in fiscal year 2010-2011
Source: City of Azusa Administrative Services Finance Department
CITY OF AZUSA
Fiscal Year
12
6
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$ 32,206,954$
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 3,098,219
Licenses and permits 794,766 463,124 361,910 433,673 481,994 532,775 381,993 472,389 610,298
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 3,829,513
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 3,059,369
Developer participation - - 4,632,500 - - - - - 1,297,580
Investment income 1,120,927 1,288,943 1,173,207 1,294,508 3,205,561 2,765,219 1,859,424 1,335,922 994,621
Fines and forfeitures 447,888 313,275 726,726 556,776 815,558 897,816 967,012 1,104,715 119,111
Contributions 93,275 87,696 298,431 154,636 106,592 99,211 106,450 113,363 157,930
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 45,373,595
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 10,623,623
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 19,824,369
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 3,423,224
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 3,729,125
Public Works 6,237,664 6,550,247 2,862,628 2,772,437 2,964,749 3,666,010 3,847,822 3,963,820 4,204,180
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 2,762,698
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 2,494,212
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 7,295,680
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 56,087,938 54,357,111
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) (15,177,055) (8,983,516)
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 24,569,629
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) (23,841,239)
Notes and loans issued 130,098 16,405,000 9,186,357 232,038 166,711 20,820,182 25,879,924 391,867 986,314
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 1,714,704
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$ (13,437,008)$ (7,268,812)$
Debt service as a percentage of
noncapital expenditures 10.9% 40.9% 21.5% 10.0%9.4%11.3%11.2%17.1%19.0%
The City of Azusa has elected to show only nine 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
Fiscal Year
12
7
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$
2011 10,580,060 21,024,826 1,224,543 32,829,429$
Source: City of Azusa Light & Water Department
Type of Customer
City of Azusa
Table 5 - Light Department
Last Nine Fiscal Years
128
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
07/06-06/07 3.34 0.1014 0.1301
07/07-06/08 3.49 0.1061 0.1360
07/08-06/09 3.49 0.1061 0.1360
07/09-11/09 3.49 0.1061 0.1360
12/09-06/10 3.81 0.1200 0.1500
07/10-06/11 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
129
2008 2009 2010 2011
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 1,649,793$ 5.404% 1,686,278$ 5.484% 1,907,792$ 6.243% 2,104,018$ 6.885%
Artisan Screen Process - 0.000% 244,353 0.795% 289,808 0.948% 319,455 1.045%
Azusa USD 833,111 2.729% 851,020 2.768% 848,494 2.777% 954,045 3.122%
Azusa Western 235,915 0.773% 259,979 0.846% 187,312 0.613% 241,542 0.790%
Buena Vista Food Prod - 0.000% - 0.000%- 0.000% 312,836 1.024%
California Amforge Corp 319,098 1.045% 300,181 0.976% 246,842 0.808% 213,367 0.698%
City of Azusa 1,166,642 3.821% 1,050,852 3.418% 1,099,736 3.599% 1,112,047 3.639%
City of Glendora 477,556 1.564% 514,909 1.675% 630,202 2.062% 575,089 1.882%
Costco Wholesale Corp.567,662 1.859% 617,698 2.009% 605,910 1.983% 612,630 2.005%
Criterion Catalyst & Tech LP 827,035 2.709% 823,604 2.679% 876,881 2.869% 181,832 0.595%
Hansen's Juices (Naked Juice)254,516 0.834% - 0.000%- 0.000%- 0.000%
Morris Partnership 283,135 0.927% 234,419 0.762% 247,137 0.809% 156,898 0.513%
Northrop Grumman Sys.488,597 1.600% 507,168 1.649% 485,763 1.590% 504,436 1.651%
Rainbird Corp./CA Div.1,080,719 3.540% 876,034 2.849% 913,206 2.988% 933,722 3.055%
S & S Foods LLC 1,245,225 4.079% 1,310,363 4.262% 1,377,385 4.507% 1,444,281 4.726%
Thermal Remediation Solutions - 0.000% - 0.000% 187,845 0.615% 195,798 0.641%
Verizon Wireless Inc - 0.000% 528,635 1.719% 543,655 1.779% 601,882 1.970%
Total 9,429,004$ 30.884% 9,805,493$ 31.891% 10,447,967$ 34.189% 10,463,878$ 31.873%
City of Azusa
Table 7 - Largest Electrical Customers
130
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$
2011 9,626,253 3,859,594 3,114,253 16,600,100$
Source: City of Azusa Light & Water Department
City of Azusa
Table 8 - Water Sold by Type of Customer
131
Fiscal Monthly Rate per Rate per
Year Ended Base 0-17 >17
Activity Rate CCF CCF
07/02-06/03 10.75$ 0.765$ 1.210$
07/03 10.75 0.765 1.210$
08/03-06/04 11.22 0.798 1.260$
07/04-06/05 11.22 0.798 1.260$
07/5-10/05 11.22 0.798 1.260$
11/05-06/06 11.56 0.822 1.300$
07/06-06/07 11.56 0.822 1.300$
07/07-06/08 12.50 0.870 1.380$
07/08-06/09 12.50 0.870 1.380$
0-12 CCF >12 CCF
07/09-06/10 14.74 0.871 1.690$
07/10-06/11 17.03 1.007 1.953
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
(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.
132
2008 2009 2010 2011
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 974,421$ 6.613% 1,371,278$ 10.498% 1,280,978$ 8.747% 1,149,331$ 6.924%
Ready Pac 450,547 3.058% 371,827 2.847% 431,649 3.305% 499,358 3.008%
Azusa Western 226,896 1.540% 419,714 3.213% 328,989 2.519% 244,528 1.473%
Azusa Unified School District 252,836 1.716% 293,496 2.247% 263,852 2.020% 304,265 1.833%
City of Azusa 78,263 0.531%86,393 0.661%94,955 0.727% 141,459 0.852%
APU Foundation 105,514 0.716% 119,322 0.913% 131,298 1.005% 212,880 1.282%
Covina Valley USD 78,162 0.530%84,487 0.647%74,237 0.568% 42,644 0.257%
Azusa Greens Country Club 105,103 0.713% 115,081 0.881% 119,771 0.917% 114,596 0.690%
S&S Foods LLC 76,160 0.517%69,207 0.530%83,896 0.642% 113,343 0.683%
Citrus College 47,877 0.325%44,088 0.338%43,123 0.330% 45,507 0.274%
Azusa Carefree Association 42,915 0.291%44,259 0.339%43,429 0.332% 52,285 0.315%
Calmat Site #1055-A 27,141 0.184%- 0.000%- 0.000% 54,439 0.328%
NCI - 0.000%48,432 0.371%56,389 0.432% 64,368 0.388%
Lovin Oven - 0.000%43,537 0.333%- 0.000% 47,099 0.284%
Hector Perales - 0.000%- 0.000% 280,785 2.150%- 0.000%
Mountain Cove - 0.000%- 0.000%72,707 0.557%- 0.000%
Mike Nijjar-060 - 0.000%- 0.000%71,217 0.545%- 0.000%
Total 2,465,835$ 16.735% 3,111,121$ 23.818% 3,377,276$ 23.060% 3,086,102$ 18.591%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
City of Azusa
Table 10 - Largest Water Customers
13
3
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%
2011 2,184,060,386 68,627,065 2,252,687,451 3,011,822,634 186,653,519 3,198,476,153 0.34228%
The City of Azusa has elected to show only nine 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
(in thousand of dollars)
Redevelopment AgencyCity
134
2003 2004 2005 2006 2007 2008 2009 2010 2011
City Direct Rates:
General City 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.15103$ 0.14921$ 0.14921$ 0.14921$
Redevelopment Agency 1.06640 1.05940 1.05560 1.02080 1.04210 1.02976 1.01800 1.01800 1.01800
Total Direct Rate 0.35563 0.35908 0.36401 0.34399 0.34395 0.32395 0.33319 0.33534 0.34228
Overlapping Rates:
Azusa Unified School District 0.29694 0.28223 0.27690 0.26611 0.27251 0.27218 0.22963 0.23269 0.25055
Childrens Center Fund 0.00064 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 0.00278
Citrus Community College 0.02458 0.02458 0.02458 0.02458 0.02458 0.02460 0.00602 0.02460 0.02460
Educational Aug Fund Impound 0.17075 0.17075 0.17075 0.17075 0.17075 0.17070 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 0.07790
Los Angeles County 0.35644 0.35599 0.35569 0.35538 0.35524 0.35421 0.35421 0.35250 0.35250
Citrus Community College District - - 0.02585 0.01763 0.00356 0.01611 0.02460 0.01027 0.02516
Metropolitan Water District 0.04937 0.04737 0.04537 0.04537 0.04537 0.02540 0.06178 0.05880 0.05820
Other 0.00098 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$ 1.11322$
The City of Azusa has elected to show only nine 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.
e: L.A. County Assessor Tax Rate Table Area 02045
CITY OF AZUSA
Table 12 - Direct and Overlapping Property Tax Rates
Last Nine 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.
13
5
2008 2009 2010 2011
Percentage of Percentage of Percentage of Percentage of
Total City Total City 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
Azusa Land Partners LLC 172,815$1.66% 133,156,469$3.75% 118,997,008$3.35%-$ 0.00%
Azusa Pacific University 298,194 2.86% 104,553,775 2.94% 215,208,344 6.06% 36,432,801 1.12%
City View Rosedale 98 LP -0.00%-0.00%-0.00% 30,842,144 0.95%
Cityview Citrus Crossing -0.00%-0.00% 26,891,782 0.76% 26,851,268 0.83%
Coastal Pacific Glen LLC -0.00%-0.00%-0.00%-0.00%
Colony Park Azusa LLC -0.00%-0.00%-0.00%-0.00%
Costco Wholesale Corporation 148,440 1.42%-0.00%-0.00%-0.00%
Criterion Catalyst Company Limited Partnership 156,137 1.50% 19,529,854 0.55% 21,134,639 0.60% 20,612,220 0.64%
Exchange El Segundo -0.00%-0.00%-0.00%-0.00%
Northrop Grumman Systems Corporation 560,313 5.37% 114,062,074 3.21% 114,488,946 3.23% 113,614,802 3.50%
Ontario Vogel 106,244 1.02%-0.00%-0.00%-0.00%
PLC Mapleton LLC -0.00% 21,964,048 0.62%-0.00%-0.00%
PPF Industrial 823 8th Street 285,367 2.74% 29,848,059 0.84% 30,445,016 0.86% 30,372,856 0.94%
Rainbird Corp/CA Div.-0.00% 44,525,024 1.25% 44,813,606 1.26% 38,614,467 1.19%
RC Properties VI LLC -0.00% 53,765,753 1.51%-0.00%-0.00%
Reichhold Inc 106,124 1.02%-0.00%-0.00%-0.00%
Rosedale Lans Partners II LLC -0.00%-0.00%-0.00% 88,873,667 2.74%
S & S Foods LLC 116,735 1.12% 19,052,371 0.54% 19,686,748 0.55% 19,350,079 0.60%
SC Azusa Industrial Center Corp -0.00%-0.00%-0.00%-0.00%
Soon Choe Kae 96,437 0.92%-0.00%-0.00%-0.00%
VPM Soldano Senior Village LP -0.00%-0.00% 19,119,483 0.54%-0.00%
William Lyon Homes Inc -0.00% 20,769,689 0.58% 21,157,233 0.60% 25,225,547 0.78%
2,046,807$19.63% 561,227,116$15.80% 631,942,805$17.81% 430,789,851$13.29%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, Los Angeles County Assessor
Information is not available for all years
City of Azusa
Table 13 - Principal Property Tax Payers
136
Amount
Taxes collected Collections Percent
Fiscal Year Levied within the Percent in Total of
Ended for the Fiscal Year of Subsequent Collections Levy
June 30 Fiscal Year of Levy Levy Years to Date to Date
2003 2,013,405$ 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%
2011 3,492,186 3,261,283 93.4% (3,421) 3,257,862 93.3%
The City of Azusa has elected to show only nine 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
137
Table 15 - Ratios of Outstanding Debt by Type
Governmental Activities Business-type Activities Debt per
Fiscal Year Certificate Tax Taxable Total Certificate Water Total Total Percentage of Capita
Ended of Allocation Pension Governmental of Revenue Business-type Primary Assessed Personal
June 30 Loans Participation Bonds (1)Funding Bonds (2)Activities Loans Participation (3)Bonds (4)Activities Governmental Values Income
2003 9,529,600 4,565,000 16,285,000 -$ 30,379,600 1,103,999 2,555,000 20,130,000 23,788,999 54,168,599 2.77% 1,149
2004 9,156,760 4,825,000 17,080,000 - 31,061,760 878,296 34,840,000 - 35,718,296 66,780,056 3.08% 1,386
2005 9,045,317 4,525,000 25,366,416 - 38,936,733 652,944 33,570,000 - 34,222,944 73,159,677 3.17% 1,508
2006 9,002,355 4,325,000 24,824,506 - 38,151,861 - 32,355,000 - 32,355,000 70,506,861 2.73% 1,460
2007 8,899,066 4,120,000 24,271,206 - 37,290,272 - 31,110,000 54,850,000 85,960,000 123,250,272 3.82% 2,534
2008 8,879,247 3,910,000 39,546,698 - 52,335,945 - 29,825,000 54,850,000 84,675,000 137,010,945 2.23% 2,811
2009 8,974,172 3,695,000 57,056,201 7,215,000 76,940,373 - 28,500,000 54,850,000 83,350,000 160,290,373 2.63% 3,276
2010 9,366,038 3,480,000 55,814,889 6,735,000 75,395,927 - 27,125,000 54,570,000 81,695,000 157,090,927 2.84% 3,192
2011 9,685,015 3,255,000 54,768,014 6,180,000 73,888,029 - 25,690,000 54,275,000 79,965,000 153,853,029 2.82% 3,314
The City of Azusa has elected to show only nine years of data for this schedule.
CITY OF AZUSA
(1)The Redevelopment Agency issued $9,051,416 of new TABS in 2005, $15,780,000 2007 Series A Merged Project Area TABS and $4,790,000 Series B Merged Project area TABS,$6,715,000 2008
Series A Merges Project Area TABS, and $11,580,000 2008 Housing Tax Allocation Bonds Series B.
(2)The City issued $7,215,000 of taxable pension funding bonds in 2008
(3)The Light Fund issued $11,995,000 of new Certificates of Participation in 2003.
(4)The Water Fund replaced its Revenue Bond with Certificates of Participation in December 2003.
Source: City of Azusa Administrative Services Finance Department
13
8
Fiscal Year Certificates Tax Percentage Debt per
Ended of Allocation of Assessed City
June 30 Participation Bonds Total Values Capita
2003 4,565,000$ 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
2011 3,255,000 54,768,014 58,023,014 1.06%1,250
The City of Azusa has elected to show only nine 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
139
Percentage Net
Gross Bonded Applicable Bonded
Debt Balance To City Debt
APFA 2003 Lease Revenue COP 3,255,000$ 100 3,255,000$
Pension Bonds 6,180,000 100 6,180,000
Total Direct Debt 9,435,000
Metropolitan Water District 107,259,876$ 0.105 112,713$
Citrus CCD DS 2004 Series 2004A 15,185,000 15.679 2,380,856
Citrus CCD DS 2004 Series 2007B 36,245,000 15.679 5,682,854
Citrus CCD DS 2004 2009 Series C 29,995,302 15.679 4,702,964
Mount San Antonio Community College District 2001 Series A 1,130,000 0.024 267
Mount San Antonio Community College District Series B 2004 8,080,000 0.024 1,909
Mount San Antonio Community College District 05 Ref BD 55,835,843 0.024 13,189
Mount San Antonio Community College District 01Series C 2006 79,461,712 0.024 18,770
Mount San Antonio Community College DS 2001, 2008 Series D 24,602,430 0.024 5,811
Azusa Unified School District 2002 Bonds 23,853,763 63.985 15,262,893
Azusa Unified School District 2002 Series 2007 42,863,943 63.985 27,426,607
Covina Valley Unified School District 2001 Series A 14,775,000 0.224 33,153
Covina Valley Unified School District 2001 Series B 21,135,713 0.224 47,426
Covina Valley Unified School District 2006 Series 2006 45,010,000 0.224 100,997
Covina Valley Unified School District 2006,2007 Series B 17,359,117 0.224 38,952
Duarte Unified School District 1998 Series B 6,112,981 0.633 38,676
Duarte Unified School District 1998 Series C 5,369,717 0.633 33,974
Duarte Unified School District 1998 Series D 6,044,534 0.633 38,243
Duarte Unified School District 1998 Series E 13,827,314 0.633 87,484
Duarte Unified School District Refunding 1998, 2010 Series A 2,670,000 0.633 16,893
Total Overlapping Debt 56,044,631
Total Direct and Overlapping Debt 65,479,631$
2010/2011 Assessed Valuation: $2,494,123,604 after deducting $748,235,349 Redevelopment Increment
Debt to Assess Valuation Ratios:Direct Debt 0.380%
Overlapping Debt 2.250%
Total Debt 2.630%
Source: HdL Coren & Cone, Los Angeles County Assessor and Auditor Combined 2010/2011 Lien Date Tax Rolls
City of Azusa
Table 17 - Direct and Overlapping Debt
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable
assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each
unit's total taxable assessed value.
140
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
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 2,252,687,451
Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25%
Adjusted assessed valuation 336,586,997 373,960,697 391,216,752 445,594,546 593,888,695 647,239,756 637,120,519 573,217,610 563,171,863
Debt limit percentage 15%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 84,475,779
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 84,475,779
The City of Azusa has elected to show nine years of data for this schedule.
(1)
Source: City of Azusa - Administrative Services-Finance Department
City of Azusa
Table 18 - Legal Debt Margin Information
Last Nine 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.
14
1
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
2011 18,326,599 12,754,229 5,572,370 1,135,000 3,370,921 4,505,921 1.24
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
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage
Last Nine Fiscal Years
CERTIFICATES OF PARTICIPATION - WATER FUND
CERTIFICATES OF PARTICIPATION - ELECTRIC FUND (2)
p g
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)
2011 40,332,068 38,356,263 1,975,805 480,000 468,614 948,614 2.08
(1)Excludes interest and depreciation expense
(2)Established December 18, 2003
Source: City of Azusa Administrative Services-Finance Department
142
Last Nine Fiscal Years (Continued)
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
2011 1,672,986 1,543,754 129,232 115,000 106,313 221,313 0.58
(1)Excludes interest and depreciation expense
REVENUE BONDS - SEWER FUND
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage (continued)
Source: City of Azusa Administrative Services-Finance Department
143
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
2011 7,910,942 1,714,212 3,179,684 4,893,896 1.62
The City of Azusa has elected to show only nine 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 2008 Series A, $11,580000 2008 Series B (Housing).
Redevelopment agency issued new Tax Allocation Bonds $15,780,000 2007 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 $9,022,800 of new Tax Allocation Bonds in 2005.
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage
Last Nine Fiscal Years
144
Fiscal Year Per Capita
Ended City County Personal Personal Unemployment
June 30 Population (1)Population (1)Income Income (3)Rate (4)
2003 47,150 9,979,600 1,482,961,800$ 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)14.5%
2011 46,431 9,818,605
(5)871,702 17,715 13.7%
The City of Azusa has elected to show only nine 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
(5) 2010 United States Census,available at http://2010.Census.gov/2010census/popmap
CITY OF AZUSA
Table 21 - Demographic and Economic Statistics
145
2011 2010 (2)2009 2008
(1)
Number of % of City Number of Number of Number of
Employer Employees Employment Employees Employees Employees
1. Azusa Unified School District
(3)0.00% 1,064 1,600 1,600
2. Northrop Grumman
(3)0.00% 1,300 1,100 1,100
3. Azusa Pacific University
(3)0.00% 1,200 900 900
4. City of Azusa
(3)0.00%409 522 522
5. Costco (formerly Price/Costco)
(3)0.00%265 311 311
6. Berger Bros.
(3)0.00%- 300 300
7. Pacific Precision Metals
(3)0.00%- 250 250
8. Tru Wood Products
(3)0.00%- 160 160
9. Wynn Oil Company
(3)0.00%- 150 150
10. Rain Bird
(3)0.00%- 132 132
11. California Amforge
(3)0.00%150 106 106
12. Vulcan
(3)0.00%- 100 100
13. Naked Juice
(3)0.00%- 75 75
14. Morris National Candy
(3)0.00%- 70 70
15. Physician's Formula
(3)0.00%167 70 70
16. Heppner Hardwood
(3)0.00%- 63 63
17. Trek Industries
(3)0.00%- 37 37
18. Cee-Jay Research and Sales
(3)0.00%250 - -
19. Monrovia Nursery
(3)0.00%671 - -
20. ABCO Insulation
(3)0.00%200 - -
21. Andre Landscape Services
(3)0.00%121 - -
22. Wynn's
(3)0.00%120 - -
23. Artisan Screen
(3)0.00%100 - -
24. Gale Banks Engineering
(3)0.00%160 - -
25. Stanley Steemer Carpet Cleaner
(3)0.00%150 - -
26. Buena Vista Food Products
(3)0.00%122 - -
27. Astro Company
(3)0.00%100 - -
28. Alliance Environmental Group
(3)0.00%200 - -
29. Magparts
(3)0.00%175 - -
Total of Top Employers - 0.00%
Total Employees in City (3)
(1)Azusa Chamber of Commerce website
(2)HdL Coren & Cone, Info Group
(3)2011 data not available
City of Azusa
Table 22 - Principal Employers
146
Function 2003 2004 2005 2006 2007 2008 2009 2010 2011
General government 77.835 77.434 56.665 59.619 59.682 61.144 67.794 66.638 67.038
Public safety 96.538 94.663 93.406 91.978 93.800 96.530 99.035 98.945 97.395
Community development 18.765 19.181 17.225 13.502 14.927 15.441 15.985 16.376 16.196
Parks and recreation 45.619 31.684 42.376 39.480 38.723 31.765 34.204 37.929 37.930
Public works 25.180 27.930 25.845 20.800 21.884 23.132 31.115 31.115 31.115
Water 41.670 37.420 37.610 39.220 36.425 36.350 44.425 44.025 43.775
Electric 31.130 29.380 28.490 30.280 31.425 32.350 36.125 37.725 36.475
Sewer/Wastewater 4.320 3.820 4.080 6.250 6.000 6.000 10.000 10.250 10.250
Total 341.057 321.512 305.697 301.129 302.866 302.712 338.683 343.003 340.174
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 Nine Fiscal Years
Fiscal Year
14
7
2003 2004 2005 2006 2007 2008 2009 2010 2011
Police:
Calls for service 53,323 52,584 49,797 51,353 52,000 56,166 56,610 54,896 54,734
Parking citations issued (1)4,249 4,053 4,136 4,691 4,833 9,881 9,801 8,188
Public Works:
Street resurfacing (lineal miles) 10.2 17.0 15.3 12.8 15.0 13.3 14.3 2.5 6.0
Parks and recreation:
Number of recreation classes 78 78 110 84 84 84 196 310 56
Number of facility rentals 728 907 1,156 1,510 1,497 1,492 706 827 829
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)18,124 (2)
Average daily consumption 24,705 28,670 29,435 25,067 27,319 23,296 22,832 21,517 20,230
(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)15,362 (2)
Average daily consumption 640,525 674,175 727,437 707,965 700,167 691,070 69,347 67,292 65,405
(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)14,071 (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)11,123 (2)
Average daily collection 147 151 157 158 109 114 122 184 177
(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
Fiscal Year
14
8
2003 2004 2005 2006 2007 2008 2009 2010 2011
Police:
Stations 111111111
Public Works:
Streets (lineal miles)170 170 170 170 170 170 170 171 170
Traffic signals 52 52 52 52 52 52 52 53 52
Parks and recreation:
Parks 10 10 10 10 10 13 13 13 13
Park acreage 52 52 55 58 58 60 61 61 61
Community centers 112223333
Water:
Water mains (miles)302 302 302 305 308 311 312 315 315
Number of fire hydrant 2,475 2,475 2,500 2,525 2,575 2,585 2,594 2,594 2,600
Maximum daily capacity 40,000 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 65
Maximum daily consumption 143 170 171 153 169 169 169 169 162
(kWh)
Sewer:
Sanitary sewers (miles)60 60 61 61 61 61 61 61 61
Storm sewers (miles)15 15 15 15 15 15 15 15 15
Maximum daily treatment capacity 48 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
14
9
Alan Kreimeier General Overview
Director of Administrative Services/CFO Letter of Transmittal
Management's Discussion and Analysis
Susan Paragas
Controller General Overview
Overall Coordination
Redevelopment Agency
Public Financing Authority
Special Revenue Funds as assigned
Charts
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
Esther Grijalva
Accountant Internal Service Funds (except
Consumer Service)
Special Revenue Funds
Fiduciary Fund
Lisa Rogers
Account Specialist II Statistical Section
CITY OF AZUSA
Table 26 - Schedule of Credits
150