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HomeMy WebLinkAboutAzusa CAFR 12_201304301356553386CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 PREPARED BY FINANCE DEPARTMENT CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................. i Organizational Chart ............................................................................................................................... v Officials of the City of Azusa .................................................................................................................. vi 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 Statement of Net Assets - Proprietary Funds ................................................................................. 26 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds ............................................................................................................. 27 Statement of Cash Flows - Proprietary Funds ............................................................................... 28 Statement of Fiduciary Net Assets - Fiduciary Funds .................................................................... 30 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds ................................................ 31 Notes to Financial Statements ........................................................................................................... 33 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ........................................................... 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 86 Budgetary Comparison Schedules - Special Revenue Funds: State Gasoline Tax ......................................................................................................................... 92 Proposition A .................................................................................................................................. 93 Proposition C .................................................................................................................................. 94 Community Development Block Grant ........................................................................................... 95 Senior Nutrition ............................................................................................................................... 96 Public Benefit Program ................................................................................................................... 97 Air Quality Improvement ................................................................................................................. 98 Grants and Seizure ......................................................................................................................... 99 Supplemental Law Enforcement ................................................................................................... 100 Fire Safety .................................................................................................................................... 101 Monrovia Nursery ......................................................................................................................... 102 Employee Benefits ........................................................................................................................ 103 Utility Mitigation............................................................................................................................. 104 LACMTA ....................................................................................................................................... 105 Measure R .................................................................................................................................... 106 AB939 Fee .................................................................................................................................... 107 Rosedale Traffic Mitigation ....................................................................................................... …108 Budgetary Comparison Schedules - Capital Projects Funds: Park In-Lieu .................................................................................................................................. 109 Public Works Endowment ............................................................................................................. 110 Budgetary Comparison Schedules - Debt Service Fund: Public Financing Authority ............................................................................................................ 111 Combining Statement of Net Assets – Nonmajor Proprietary Funds .............................................. 112 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Nonmajor Proprietary Funds ............................................................................. 113 Combining Statement of Cash Flows – Nonmajor Proprietary Funds ............................................. 114 Combining Statement of Net Assets – Internal Service Funds........................................................ 116 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 ................................................................................... 118 Combining Statement of Cash Flows – Internal Service Funds ................................................... 120 Combining Statement of Changes in Assets and Liabilities – Agency Fund ............................... 122 Supplemental Statement of Revenues, Expenses and Changes in Net Assets – Water – Enterprise Fund ......................................................................................... 123 Supplemental Statement of Revenues, Expenses and Changes in Net Assets – Light – Enterprise Fund ........................................................................................... 124 STATISTICAL SECTION Table 1 – Net Assets by Component ............................................................................................ 127 Table 2 – Change in Net Assets ................................................................................................... 128 Table 3 – Fund Balances of Governmental Funds ....................................................................... 130 Table 4 – Changes in Fund Balances of Governmental Funds ................................................... 131 Table 5 – Light Department, Electricity Sold by Type of Customer .............................................. 132 Table 6 – Electricity Rates ............................................................................................................ 133 Table 7 – Largest Electrical Customers ....................................................................................... 134 Table 8 – Water Sold by Type of Customer ................................................................................. 135 Table 9 – Water Rates .................................................................................................................. 136 Table 10 – Largest Water Customers .......................................................................................... 137 Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................ 138 Table 12 – Direct and Overlapping Property Rates ...................................................................... 139 Table 13 – Principal Property Tax Payers .................................................................................... 140 Table 14 – Property Tax Levies and Collections .......................................................................... 141 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Number STATISTICAL SECTION (CONTINUED) Table 15 – Ratios of Outstanding Debt by Type .......................................................................... 142 Table 16 – Ratio of General Bonded Debt Outstanding ............................................................... 143 Table 17 – Direct and Overlapping Debt ...................................................................................... 144 Table 18 – Legal Debt Margin Information ................................................................................... 145 Table 19 – Pledged Revenue Coverage ...................................................................................... 146 Table 20 – Pledged Revenue Coverage, Tax Allocation Bonds – Redevelopment Agency ....................................................... 148 Table 21 – Demographic and Economic Statistics ....................................................................... 149 Table 22 – Principal Employers .................................................................................................... 150 Table 23 – Full-time and Part-time Employees by Function ........................................................ 151 Table 24 – Operating Indicators by Function ............................................................................... 152 Table 25 – Capital Asset Statistics by Function ........................................................................... 153 Table 26 – Schedule of Credits .................................................................................................... 154 Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395 Tel: (626) 812-5202 ▪ FAX (626) 334-6358 i March 29, 2013 Honorable Mayor and Council Members City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 Honorable Mayor and Council Members: Submitted for your information and consideration is the Comprehensive Annual Financial Report of the City of Azusa for the fiscal year ended June 30, 2012. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with City management. The data presented is believed to be accurate in all material aspects and is designed to set forth fairly the financial position and the results of the City's operations as measured by the financial activity of the various funds. All necessary disclosures are included to enable the reader to understand fully the financial activities and operations of the City. The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and include the report of the City's independent Certified Public Accountants, Lance, Soll & Lunghard. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. AUDIT REPORT The City received an unqualified opinion from its independent auditors, Lance, Soll and Lunghard, for the City’s Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2012. The scope of the examination did not include the statistical section of this report. REPORTING ENTITY The Comprehensive Annual Financial Report combines the financial statements of the Successor Agency of the former Redevelopment Agency of the City of Azusa and the Azusa Public Financing Authority with the City of Azusa to constitute a single reporting entity. Although each entity is legally separate from the City, their respective financial operations are closely related thereto. This combined presentation better represents the financial activities of the City of Azusa. Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395 Tel: (626) 812-5202 ▪ FAX (626) 334-6358 ii ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City uses the modified accrual basis of accounting to record general governmental operations. Under this method, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the fiscal period. For proprietary funds (enterprise and internal service funds), the full accrual method of accounting is utilized. Accordingly, revenues are recognized in the accounting period when they are earned and expenses are recognized when they are incurred. In developing and evaluating the City's accounting systems, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition. Internal controls are also utilized to ensure the reliability of financial records, which are the basis for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of control measures does not exceed the benefits likely to be derived from this control, and that the evaluation of costs and benefits likely to be derived requires estimates and judgments by management. All internal evaluations occur within the framework outlined above. Staff believes the internal accounting controls safeguard adequately the City's assets and provide reasonable assurance that financial transactions are properly recorded. Section 2-450 of the Azusa Municipal Code stipulates that budget amendments of $100,000 or more must be approved by City Council. This is the legal level of budgetary control. Capital Improvement Projects are maintained by project life. Therefore, the budget appropriation for these projects may need to be re-budgeted in subsequent accounting periods. LOCAL ECONOMY The City of Azusa enjoys a diverse local economy and City revenues are less dependent on single source or cyclical revenues than most of the surrounding Cities in the region. Sales Tax, though important, is not the City’s primary revenue source. Consequently, the City is relatively better insulated from major economic downturns. Local employment remains stable with Northrop-Grumman, a major defense contractor, expanding its operations and Azusa Pacific University in the midst of a major expansion of both facilities and student population. The planned and funded expansion of the Los Angeles Metro Gold Line through Azusa in the immediate future is also anticipated to bring additional economic activity to the City’s revitalizing Downtown with planned transit oriented development projects currently under negotiation. Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395 Tel: (626) 812-5202 ▪ FAX (626) 334-6358 iii MAJOR INITIATIVES This year we faced many challenges to our continued efforts to revitalize the community: The lingering effects of the housing recession continue to depress prices on existing homes and to reduce the construction of new housing stock. This has led to a decline in property vales for several years and put a strain on the City’s finances. Although there is a slight growth in property tax and sales tax, revenues are still below the high peak in FY 2008-09. The dissolution of the Redevelopment Agency (RDA) presented financial challenges to the City. Several City departments provided services to support the RDA and these departments were reimbursed by RDA for these services. To continue providing some of the services, the General Fund absorbed much of these costs. The dissolution significantly affected ongoing efforts to attract new economic development to the community. Efforts to proceed with an expansion of mining activities undertaken by Vulcan Materials and the receipt of resulting mining revenues continues to be delayed due to the legal appeal of the project by the City of Duarte over environmental grounds. In addition, the City’s approval of a proposal from Waste Management, Inc. to build a materials recovery facility has also been hampered by environmental litigation. Staff believes many of these issues will be resolved favorably for the City in the near future. However, until then, continued financial prudence and a resolve on the part of staff and management to work together to get through this period is of the utmost importance. APPROPRIATION LIMIT As set forth by the Gann Initiative, which became law in the State of California in 1979, and its subsequent revisions, the City's statutory appropriation limit for 2011-12 was calculated at $153,054,779. Budgeted revenues from proceeds of taxes totaled $25,974,310, which is $126,468,319 or about 82.6% below the City's legal appropriation limit. CASH MANAGEMENT As a general law city, Azusa operates its pooled idle cash investments under the Prudent Man Rule (California Civil Code Section 2261, et. seq.), which in essence states that "in investing property for the benefit of another, a trustee shall exercise the judgment and care, under circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs...” The City's cash management system is designed to monitor and forecast expenditures and revenues as accurately as possible and to invest funds to the fullest extent possible. The City attempts to obtain the highest available investment yields consistent with the criteria established and outlined in the City's Investment Policy, which is approved annually by Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395 Tel: (626) 812-5202 ▪ FAX (626) 334-6358 iv the City Council. Some of the instruments in which the City may invest are: U.S. Government Securities, Certificates of Deposit, Bankers' Acceptances, the State of California Local Agency Investment Fund (LAIF), Treasury Bills, Repurchase Agreements, and regular savings and demand deposits. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Azusa for its (CAFR) for the fiscal year ended June 30, 2011. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. This document could not have been prepared without the dedicated efforts of the entire Finance Department staff. The City’s independent auditors, Lance, Soll and Lunghard, provided expertise and advice in preparing this financial report. Through the team effort of its City Council, management and employees, the City expects to continue the high level of service, which is currently provided to the Azusa community. Due to the consistent policies of the City Council and the Finance Department, the City of Azusa has been able to maintain a sound financial base from which to operate. Very truly yours, Susan Paragas Director of Finance 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 Angel Carrillo Mayor Pro-Tem March, 2015 Robert Gonzales Councilmember March, 2013 Keith Hanks Councilmember March, 2013 Uriel Macias Councilmember March, 2015 DEPARTMENT HEADS TITLE PHONE NUMBER James W. Makshanoff City Manager 626-812-5238 Tito Haes Director of Public Works/Assistant City Manager 626-812-5248 Kurt Christiansen Director of Economic & Community Development 626-812-5236 Sam Gonzalez Chief of Police 626-812-3250 Ann Graf Director of Information Technology 626-812-5024 Joe Jacobs Director of Recreation & Family Services 626-812-5220 Nancy Johnson Director of Library 626-812-5277 George Morrow Director of Utilities 626-812-5219 Robert Neiuber Acting Director of Human Resources 626-812-5183 Susan Paragas Acting Director of Finance 626-812-5202 Daryl L. Osby Chief/Fire 626-974-8371 City Attorney Best, Best, & Krieger (Marco Martinez) 949-263-2603 vi THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITORS’ 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 the City of Azusa, California, (the City), as of and for the year ended June 30, 2012, 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, 2012, and the respective changes in financial position, and cash flows, where applicable, thereof and the respective budgetary comparison for the General 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 “Successor Agency Trust for Assets of the Former Redevelopment Agency”. The note provides information on the dissolution of the Redevelopment Agency and the newly formed Successor Agency. In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2013, 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. 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. To the Ho City of Az   We have auditing s managem consisten knowledg or provide sufficient Our audit comprise nonmajor additional nonmajor derived fr financial s of the fina informatio statement auditing s fairly state statistical financial s Brea, Cal March 29    onorable Mayo zusa, Californ applied certa standards gen ment about t cy with man e we obtaine e any assura evidence to e was conduct the City’s fin fund financia analysis and fund financ rom and rela statements. T ancial statem on directly to ts or to the fin standards gen ed in all mate sections hav statements an ifornia , 2013 or and Memb ia ain limited pro nerally accep he methods agement's re d during our ance on the express an op ted for the pu ancial statem al statements d are not a re ial statement ate directly to The informatio ments and cer o the underly nancial statem nerally accep rial respects ve not been s nd, according bers of City Co cedures to th pted in the U of preparin esponses to audit of the b information b pinion or prov urpose of form ments as a wh and schedul equired part o ts and sched o the underly on has been rtain additiona ying account ments themse ted in the Un in relation to subjected to t ly, we do not ouncil he required su nited States g the inform our inquiries basic financia because the ide any assur ming opinions hole. The int les, and statis of the financia dules are th ying accounti subjected to al procedures ting and oth elves, and oth nited States o the financial s the auditing p express an o upplementary of America, mation and c , the basic f al statements. limited proce rance. s on the finan troductory se stical section al statements e responsibi ng and othe the auditing s, including c her records her additional of America. In statements a procedures a opinion or pro y information which consis comparing th financial state . We do not e edures do no ncial statemen ection, combin , are present s. The combin lity of mana r records us procedures a comparing an used to pre procedures n our opinion, s a whole. Th applied in the ovide any assu in accordance sted of inquir he informatio ements, and express an op ot provide us nts that collec ning and indiv ted for purpos ning and indiv gement and ed to prepar applied in the nd reconciling pare the fin in accordance , the informat he introductor e audit of the urance on the e with ries of on for other pinion s with ctively vidual ses of vidual were re the e audit g such ancial e with tion is ry and basic em. 2 City of Azusa Management’s Discussion and Analysis June 30, 2012 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, 2012. 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 2012 by $181,437,080 (net assets). • Total City assets of $315,747,894 include $159,273,548 or 50% of non-current assets attributed to capital assets, net of depreciation. • Total City liabilities of $134,310,814 include $112,869,789 or 84% of long-term liabilities attributed mainly to tax allocation bonds and certificates of participation. • As of June 30, 2012, the City’s governmental funds reported combined fund balances of $26,016,801. • At the end of the current fiscal year, the total fund balance for the General Fund was decreased by $1,169,803 to $15,134,156. • Total General Fund revenues received for the year were $32,852,402 and total General Fund expenditures for the year were $31,277,098, an excess of revenues over expenditures amounting to $1,575,304. 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, 2012 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 Low/Moderate Income Housing 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, 2012 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. 2012 2011 2012 2011 2012 2011 Current and other assets 72,093,769$ 61,355,492$ 84,380,577$ 82,946,211$ 156,474,346$ 144,301,703$ Capital assets, net 28,862,696 32,156,047 130,410,852 133,467,063 159,273,548 165,623,110 Total assets 100,956,465 93,511,539 214,791,429 216,413,274 315,747,894 309,924,813 Current liabilities 13,048,589 4,886,460 8,392,436 8,707,714 21,441,025 13,594,174 Long-term liabilities 31,342,832 84,997,930 81,526,957 84,305,104 112,869,789 169,303,034 Total liabilities 44,391,421 89,884,390 89,919,393 93,012,818 134,310,814 182,897,208 Net assets: Invested in capital assets, net of related debt 28,862,696 19,297,862 60,562,199 35,160,311 89,424,895 54,458,173 Restricted 5,306,039 35,312,033 10,845,193 3,192,561 16,151,232 38,504,594 Unrestricted 22,396,309 (50,982,746) 53,464,644 85,047,584 75,860,953 34,064,838 Total net assets 56,565,044$ 3,627,149$ 124,872,036$ 123,400,456$ 181,437,080$ 127,027,605$ Total City of Azusa - Summary of Net Assets Governmental Activities Business Type Activities 5 City of Azusa Management’s Discussion and Analysis June 30, 2012 As of June 30, 2012, the City’s assets exceeded liabilities by $181,437,080. This represents an increase 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 balance. The decrease in business type activities unrestricted balance can be attributable to an increase in capital investments. 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 increase for the Water Fund $858,549 and a net increase for the Electric Fund $298,875. In evaluating the net assets for both governmental and business-type activities in the City of Azusa, $89,424,895 (49%) denotes net assets invested in capital assets (net of related debt) and $16,151,232 (9%) represents resources that are subject to external restrictions. The remaining balance represents unrestricted net assets of $75,860,953 (42%). The following chart shows the comparison of the three components of net assets for Fiscal Years 2011-12 and 2010-11 (in millions) Governmental activities. The following condensed summary of activities of the City’s governmental activities for the year ended June 30, 2012 shows total net assets equal $56,565,044, an increase of $52,937,922 (1488%) from the prior year. The primary increases are due to reductions in noncurrent liabilities that are due in more than one year from the extraordinary gain on the dissolution of the redevelopment agency ($59,933,832). Revenue and expense graphs are included to aid the reader in understanding the results of the current year’s activities. 6 City of Azusa Management’s Discussion and Analysis June 30, 2012 Business type activities. Business type activities net assets totaled $124,872,036, an increase of $1,471,580 (1.2%) from the prior year. Key elements of the increase in net assets are due to reduction in the long-term liabilities. 2012 2011 2012 2011 2012 2011 Program Revenues: Charges for services 8,312,509$ 7,847,584$ 66,225,588$ 61,647,937$ 74,538,097$ 69,495,521$ Operating contributions and grants 3,267,287 3,651,491 - - 3,267,287 3,651,491 Capital contributions and grants 137,102 109,226 - - 137,102 109,226 General Revenues: Taxes 29,046,350 31,863,145 555,225 571,036 29,601,575 32,434,181 Motor vehicle in lieu - 143,401 - - - 143,401 Investment earnings 420,126 2,540,133 884,535 1,626,291 1,304,661 4,166,424 Gain on sale of assets (50,068) - (1,966,003) 1,350 (2,016,071) 1,350 Miscellaneous 1,284,484 854,945 257,653 358,891 1,542,137 1,213,836 Extraordinary gain/loss on dissolution of redevelopment agency 59,933,832 - - - 59,933,832 - Total Revenues 102,351,622 47,009,925 65,956,998 64,205,505 168,308,620 111,215,430 Expenses: General Government 11,484,071 12,198,991 - - 11,484,071 12,198,991 Public Safety 20,475,798 20,187,914 - - 20,475,798 20,187,914 Community Development 3,286,420 3,472,237 - - 3,286,420 3,472,237 Parks and Recreation 4,178,098 4,184,626 - - 4,178,098 4,184,626 Public Works 8,850,113 5,539,866 - - 8,850,113 5,539,866 Interest and Fiscal Charges 2,244,315 7,380,598 - - 2,244,315 7,380,598 Water - - 19,366,325 19,680,719 19,366,325 19,680,719 Light - - 39,115,161 40,083,680 39,115,161 40,083,680 Sewer/Wastewater - - 2,083,756 1,982,241 2,083,756 1,982,241 Refuse Contract - - 2,851,882 2,962,395 2,851,882 2,962,395 Total Expenses 50,518,815 52,964,232 63,417,124 64,709,035 113,935,939 117,673,267 Increase (decrease) in net assets before transfers 51,832,807 (5,954,307) 2,539,874 (503,530) 54,372,681 (6,457,837) Transfers 1,082,262 1,326,374 (1,082,262) (1,326,374) - - Change in Net Assets 52,915,069 (4,627,933) 1,457,612 (1,829,904) 54,372,681 (6,457,837) Net Assets (Deficits) - Beginning 3,627,149 8,059,749 123,400,456 125,075,427 127,027,605 133,135,176 Restatement of Net Assets 22,826 195,333 13,968 154,933 36,794 350,266 Net Assets (Deficits) - Ending 56,565,044$ 3,627,149$ 124,872,036$ 123,400,456$ 181,437,080$ 127,027,605$ Activities Activities Total City of Azusa - Summary of Changes in Net Assets (Deficits) Governmental Business Type The City’s total revenues are $168,308,620 and the costs of all programs and services are $113,935,939. Fiscal year 2011-12 revenues increased by $57,093,190 (51%). Expenses decreased by $3,737,328 (-4%) from prior year. Key factors include: ♦ The increase in the governmental activities consisted of the extraordinary gain on the dissolution of the redevelopment agency. The decrease in Taxes in the governmental activities consisted of a one-time collection for land excavation in the prior year and an increase in sales tax of 9.8% was primarily due to the addition of a Target store. 7 City of Azusa Management’s Discussion and Analysis June 30, 2012 ♦ The City experienced a rise in Franchise Fees and Utility User Tax related to increases in Electric and Water Sales. The increases in these revenues were attributable to a 4.5% and 12.8% increases in Electric and Water, respectively, sales and service charges primarily due to a combination of a rise in usage and rates. ♦ Investment earnings were significantly lower due to several redevelopment agency (RDA) loans that were repaid in FY 2010-11 and the accrual of interest income ceased. However, the City is awaiting the determination of the California State Department of Finance regarding the validity of these repayments since RDA properties were used to settle the loans. Key elements of this year’s summary of activities are as follows: ♦ Property tax revenue decreased by $2,251,801, Sales tax revenue increased by a $556,437 and Franchise fees increased by $133,291 from the prior year. ♦ Charges for services revenue increased by $464,925; investment earnings decreased by $2,120,007 primarily due to the market-wide low interest rates. ♦ Operating contributions and grants decreased by $384,204 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, 2012 • Total Governmental Activities expenses decreased $2,445,417 (-4.6%) over last year total Governmental Activities expenses. • Total General Government expenses decreased $714,920 (-5.7 %) compared to prior year. The reduction is attributable to a reduction in capital project expenses in reductions in operating costs. • However, total Public Works expenditures increased $3,310,247 (60.1%) primarily due to increased activities in capital improvement projects. 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. 9 City of Azusa Management’s Discussion and Analysis June 30, 2012 At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of 26,016,801, an increase of $4,147,730 in comparison with the prior year’s revised fund balance. Fund balance classifies nonspendable items to indicate that it is not available for new spending. This includes $20,773,837 in land held for resale. Also, the dissolution and elimination of the RDA financial component reflected an increase of $10,087,999 in the unassigned fund balance. The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2011-12, its fund balance decreased by $1,169,803, primarily as a result of the repayment of RDA loans in FY 2010-11 and an increase in personnel costs. At the end of the current fiscal year, the General Fund total fund balance was $15,134,156. A majority of this total is land held for resale as a result of the properties transferred from the former Redevelopment Agency. Within the General Fund, a one-time miscellaneous revenue of $1,050,000 resulted from a fund exchange of Proposition A funds. 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 $52,740,095. Total unrestricted net assets decreased by $31,707,865 (37.5%) and total net assets increased by $1,274,538 (1.0%) from the previous fiscal year. Unrestricted net assets of the City’s Water Utility at the end of the year amounted to $24,576,155 which is a decrease of $83,276 (0.3%) and total net assets increased by $856,579 (1.5%) from the previous fiscal year. Unrestricted net assets of the City’s Light Utility at the end of the year amounted to $25,439,244. Total unrestricted net assets decreased by $32,123,322 (55.8%) and total net assets increased by $312,843 (0.5%) from the previous fiscal year. The following chart highlights total revenue and total expenses for each of the business type activities for fiscal year end June 30, 2012. 10 City of Azusa Management’s Discussion and Analysis June 30, 2012 General Fund Budgetary Highlights Following is a summary of budgetary changes and actual results for General Fund, revenues, expenditures, and other financing sources: Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 25,102,625$ 25,102,625$ 24,513,944$ (588,681)$ Charges for services 2,840,510 1,372,710 1,881,781 509,071 Assessments 3,029,250 3,029,250 2,201,117 (828,133) Other revenue 2,861,430 3,917,690 4,255,560 337,870 Total revenue 33,833,815 33,422,275 32,852,402 (569,873) EXPENDITURES Operations 29,642,615 29,201,824 29,753,487 (551,663) Capital Outlay 28,210 157,028 152,676 4,352 Debt Service 1,042,060 1,532,060 1,370,935 161,125 Total expenditures 30,712,885 30,890,912 31,277,098 (386,186) Excess of revenues over expenditures 3,120,930 2,531,363 1,575,304 (956,059) OTHER FINANCING SOURCES (USES) Transfers in 1,199,845 1,229,845 1,550,075 320,230 Transfers out 4,127,330 4,131,530 4,306,348 (174,818) Total other financing sources (uses)(2,927,485) (2,901,685) (2,756,273) 145,412 Net change in fund balance 193,445 (370,322) (1,180,969) (810,647) Fund balance beginning of year 16,315,125 16,315,125 16,315,125 - Fund balance end of year $16,508,570 $15,944,803 $15,134,156 ($810,647) Budgeted Amounts City of Azusa - General Fund Budgetary Summary Revenues, Expenditures, and Changes in Fund Balance June 30, 2012 The difference between the original expenditure budget and the final amended expenditure budget was an increase of $178,027 with highlights as follows: ♦ General Government saw a net decrease in appropriations of $264,225 that included the reductions in personnel costs due to contract concessions from employee groups, and layoffs. However, there were increases in legal costs due to an unanticipated court case, a Council approved graffiti rewards program and a rise in bank fees. ♦ Debt Service appropriation increased due to the rescinding of the sales tax agreement between the City and the former RDA that repays a developer loan. ♦ Parks and Recreation increased by $80,000 mainly due to increases in utility costs associated with increases in utility rates and additional park maintenance responsibilities. 11 City of Azusa Management’s Discussion and Analysis June 30, 2012 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, 2012 amounted to $159,275,518 (net of accumulated depreciation). This investment includes land, construction in progress, land improvements, buildings and structures, machinery and equipment, automotive equipment and infrastructure. 2012 2011 2012 2011 2012 2011 Land 1,319,536$ 1,729,956$ 2,988,973$ 2,988,973$ 4,308,509$ 4,718,929$ Construction in Progress 71,222 1,145,104 18,379 1,804,845 89,601 2,949,949 Land Improvements 1,709,233 2,695,845 537,935 577,595 2,247,168 3,273,440 Buildings and Structures 7,199,303 7,485,628 14,416,101 14,943,016 21,615,404 22,428,644 Machinery and Equipment 1,181,538 1,426,795 3,474,681 3,487,392 4,656,219 4,914,187 Automotive Equipment 849,664 1,089,153 570,868 574,680 1,420,532 1,663,833 Infrastructure 16,532,200 16,583,566 108,403,915 109,090,562 124,936,115 125,674,128 Total 28,862,696$ 32,156,047$ 130,410,852$ 133,467,063$ 159,273,548$ 165,623,110$ 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 5 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 $112,869,789. Of this amount, $31,342,832 is a liability of the Governmental Activities and $81,526,957 is a liability of the Business Type Activities. 2012 2011 2012 2011 2012 2011 Employee Leave Benefits 3,575,113$ 3,711,136$ 1,252,028$ 1,224,271$ 4,827,141$ 4,935,407$ Net OPEB Liability 7,361,411 6,207,671 - - 7,361,411 6,207,671 1994 COPS - - - 1,810,000 - 1,810,000 2003 COPS 3,025,000 3,255,000 3,070,000 23,880,000 6,095,000 27,135,000 2006 Water Revenue Bonds - - 53,965,000 54,275,000 53,965,000 54,275,000 2003 Tax Allocation Bonds - 8,355,000 - - - 8,355,000 2005 Tax Allocation Bonds - 9,518,014 - - - 9,518,014 2007 Tax Allocation Bonds - 19,230,000 - - - 19,230,000 2008 Tax Allocation Bonds - 17,665,000 - - - 17,665,000 2008 Taxable Pension Fnding Bd 5,555,000 6,180,000 - - 5,555,000 6,180,000 2011 Sewer Installment Loan - - 5,630,000 - 5,630,000 - 2012 Electric Refunding Bond - - 5,820,000 - 5,820,000 - 2012 Water Refunding Bonds - - 8,715,000 - 8,715,000 - Developer Agreements 10,005,461 9,685,015 - - 10,005,461 9,685,015 Claims and Judgments Payable 1,723,591 1,880,766 - - 1,723,591 1,880,766 Unamortized Loss on Defeasance - - (1,318,187) - (1,318,187) - Unamortized Premium/Discount 97,256 - 4,393,116 - 4,490,372 - Total 31,342,832$ 85,687,602$ 81,526,957$ 81,189,271$ 112,869,789$ 166,876,873$ City of Azusa - Outstanding Debt Governmental Business Type Activities Activites Total 12 City of Azusa Management’s Discussion and Analysis June 30, 2012 Additional information on the City’s long-term debt can be found in Note 6 of Notes to the Basic Financial Statements. Economic Factors and Next Year’s Budgets and Rates The revenue projections for the 2012-13 General Fund adopted budget reflected a decrease of 1.6% over the prior year’s budget. Many major revenues are anticipated to remain at prior year levels or decrease due to the economic downturn being experienced throughout the country. Overall, the City continues to rely on past trends, economic forecasts from outside agencies, such as the State Department of Finance, State Board of Equalization and the Los Angeles County Assessor’s Office, to predict revenues for entitlement, grants, state subventions, sales tax, and property tax. General Fund expenditures, including transfers out and capital outlay, decreased by 2.5% for the 2012-13 adopted budget. The City experienced personnel layoffs, offered an early retirement incentive and froze unfilled positions. Reductions in employee fringe benefits became necessary and were made. The City Manager also instructed departments to eliminate or reduce discretionary spending, and cut from the prior year Maintenance & Operations budget. The City strives to maintain a high quality of services while adopting a balanced budget. For fiscal year 2012-13, the City adopted a balanced budget with a surplus of $11,120 for the General Fund. The State of California fiscal crisis continues to have negative impacts on the City’s finances. The State eliminated the redevelopment agencies effective February 1, 2012. This elimination cripples future redevelopment as the former agency is prohibited from entering into new projects, obligations or commitments. This financial statement will be the last report to include the former RDA Funds. The funds were transferred to the Successor Agency Fund that is categorized as a fiduciary fund. While the City has seen a slight increase in property tax and sales tax revenue due to Target and the increasing home sales price, the levels are still below our peak in FY 2008-09. City staff will continue to be prudent with its budget and to monitor any legislative action that could impact the financial condition in Azusa. Request for Information This financial report is designed to provide a general overview of the financial position of the City of Azusa for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to City of Azusa Finance Department, 213 E. Foothill Blvd., Azusa, CA 91702. 13 THIS PAGE INTENTIONALLY LEFT BLANK 14 CITY OF AZUSA STATEMENT OF NET ASSETS Governmental Business-Type Activities Activities Total Assets: Cash and investments 14,470,016$ 27,791,189$ 42,261,205$ Receivables: Accounts 1,103,548 9,965,700 11,069,248 Taxes 1,591,857 - 1,591,857 Notes and loans 945,816 80,155 1,025,971 Accrued interest 15,600 14,424 30,024 Internal balances (5,863,861) 5,863,861 - Prepaid costs 27,221 8,885 36,106 Due from other governments 8,289,735 106,518 8,396,253 Due from Successor Agency 22,154,005 13,245,252 35,399,257 Inventories 149,347 1,624,772 1,774,119 Deferred charges 357,485 1,165,536 1,523,021 Land held for resale 20,773,837 2,919,646 23,693,483 Restricted assets: Cash and investments 30,848 13 30,861 Cash with fiscal agent 663,118 12,015,263 12,678,381 Cash held for rate stabilization - 9,579,363 9,579,363 Net pension asset 7,385,197 - 7,385,197 Capital assets not being depreciated 1,390,758 3,007,352 4,398,110 Capital assets, net of depreciation 27,471,938 127,403,500 154,875,438 Total Assets 100,956,465 214,791,429 315,747,894 Liabilities: Accounts payable 3,248,958 3,412,626 6,661,584 Accrued liabilities 1,154,521 280,990 1,435,511 Accrued interest 230,584 1,411,724 1,642,308 Unearned revenue 195,693 - 195,693 Deposits payable 10,000 3,254,712 3,264,712 Due to other governments 8,208,833 32,384 8,241,217 Noncurrent liabilities: Due within one year 4,012,492 2,032,221 6,044,713 Due in more than one year 27,330,340 79,494,736 106,825,076 Total Liabilities 44,391,421 89,919,393 134,310,814 Net Assets: Invested in capital assets, net of related debt 28,862,696 60,562,199 89,424,895 Restricted for: Public safety 1,297,275 - 1,297,275 Capital projects 3,526,206 - 3,526,206 Debt service 482,558 1,265,830 1,748,388 Rate stabilization - 9,579,363 9,579,363 Unrestricted 22,396,309 53,464,644 75,860,953 Total Net Assets 56,565,044$ 124,872,036$ 181,437,080$ JUNE 30, 2012 Primary Government See Notes to Financial Statements 15 CITY OF AZUSA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 11,484,071$ 3,090,304$ 36,130$ -$ Public safety 20,475,798 721,032 853,082 137,102 Community development 3,286,420 2,615,631 595,786 - Parks and Recreation 4,178,098 1,046,584 239,281 - Public works 8,850,113 838,958 1,543,008 - Interest on long-term debt 2,244,315 - - - Total Governmental Activities 50,518,815 8,312,509 3,267,287 137,102 Business-Type Activities: Water 19,366,325 20,062,118 - - Light 39,115,161 40,962,648 - - Sewer/Wastewater 2,083,756 2,223,876 - - Refuse Contract 2,851,882 2,976,946 - - Total Business-Type Activities 63,417,124 66,225,588 - - Total Primary Government 113,935,939$ 74,538,097$ 3,267,287$ 137,102$ 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 Loss on disposal of capital asset Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 19) Transfers Total General Revenues, Contributions, Extraordinary 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 (8,357,637)$ -$ (8,357,637)$ (18,764,582) - (18,764,582) (75,003) - (75,003) (2,892,233) - (2,892,233) (6,468,147) - (6,468,147) (2,244,315) - (2,244,315) (38,801,917) - (38,801,917) - 695,793 695,793 - 1,847,487 1,847,487 - 140,120 140,120 - 125,064 125,064 - 2,808,464 2,808,464 (38,801,917) 2,808,464 (35,993,453) 9,856,354 555,225 10,411,579 210,923 - 210,923 6,234,614 - 6,234,614 6,355,828 - 6,355,828 1,865,195 - 1,865,195 3,250,469 - 3,250,469 1,272,967 - 1,272,967 - - - 420,126 884,535 1,304,661 1,284,484 257,653 1,542,137 (50,068) (1,966,003) (2,016,071) 59,933,832 - 59,933,832 1,082,262 (1,082,262) - 91,716,986 (1,350,852) 90,366,134 52,915,069 1,457,612 54,372,681 3,627,149 123,400,456 127,027,605 22,826 13,968 36,794 56,565,044$ 124,872,036$ 181,437,080$ Net (Expenses) Revenues and Changes in Net Assets See Notes to Financial Statements 17 CITY OF AZUSA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 General Assets: Pooled cash and investments -$ -$ -$ Receivables: Accounts 343,896 - - Taxes 1,341,096 - - Notes and loans 584,222 - - Accrued interest 7,763 - - Prepaid costs 6,562 - - Due from other governments 8,164,474 - - Inventories 149,347 - - Land held for resale 20,773,837 - - Restricted assets: Cash and investments - - - Cash and investments with fiscal agents 180,560 - - Total Assets 31,551,757$ -$ -$ Liabilities and Fund Balances: Liabilities: Accounts payable 2,103,919$ -$ -$ Accrued liabilities 1,028,171 - - Deferred revenues 450,061 - - Unearned revenues - - - Deposits payable 10,000 - - Due to other governments 8,208,833 - - Due to other funds 4,360,617 - - Advances from other funds 256,000 - - Total Liabilities 16,417,601 - - Fund Balances: Nonspendable: Inventory 149,347 - - Prepaid costs 6,562 - - Land held for resale 20,773,837 - - Notes and loans 21,722 - - Restricted for: Community development projects - - - Public safety - - - Capital Projects - - - Debt service - - - Unassigned (5,817,312) - - Total Fund Balances 15,134,156 - - Total Liabilities and Fund Balances 31,551,757$ -$ -$ Special Revenue Funds Debt Service Funds Low/Mod Income Housing Debt Service RDA See Notes to Financial Statements 18 CITY OF AZUSA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments 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 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 11,577,621$ 11,577,621$ 759,249 1,103,145 250,761 1,591,857 354,706 938,928 6,980 14,743 3,050 9,612 76,982 8,241,456 - 149,347 - 20,773,837 30,848 30,848 482,558 663,118 13,542,755$ 45,094,512$ 763,429$ 2,867,348$ 60,325 1,088,496 435,260 885,321 195,693 195,693 - 10,000 - 8,208,833 455,403 4,816,020 750,000 1,006,000 2,660,110 19,077,711 - 149,347 3,050 9,612 - 20,773,837 4,988 26,710 5,756,685 5,756,685 1,297,275 1,297,275 3,525,556 3,525,556 482,558 482,558 (187,467) (6,004,779) 10,882,645 26,016,801 13,542,755$ 45,094,512$ See Notes to Financial Statements 19 THIS PAGE INTENTIONALLY LEFT BLANK 20 CITY OF AZUSA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Fund balances of governmental funds 26,016,801$ 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.28,238,827 Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the statement of net assets.357,485 Long-term debt and compensated absences that have not been included in the governmental fund activity: Long-term liabilities (18,682,717) Compensated Absences (3,343,113) 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 (7,361,411) Net Pension Asset 7,385,197 Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.(230,584) 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.885,321 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.23,299,238 Net assets of governmental activities 56,565,044$ See Notes to Financial Statements 21 CITY OF AZUSA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 General Revenues: Taxes 24,513,944$ -$ 3,079,569$ Assessments 2,201,117 - - Licenses and permits 1,270,221 - - Intergovernmental 128,994 - - Charges for services 1,881,781 - - Use of money and property 685,624 395 55,795 Fines and forfeitures 978,829 - - Contributions 19,688 - - Miscellaneous 1,172,204 - - Total Revenues 32,852,402 395 3,135,364 Expenditures: Current: General government 7,533,532 16,864 1,462,081 Public safety 16,264,354 - - Community development 1,682,863 - - Parks and recreation 3,357,948 - - Public works 914,790 - - Capital outlay 152,676 - - Debt service: Principal retirement 625,000 - 1,760,717 Interest and fiscal charges 745,935 - 1,645,689 Total Expenditures 31,277,098 16,864 4,868,487 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,575,304 (16,469) (1,733,123) Other Financing Sources (Uses): Transfers in 1,550,075 - - Transfers out (4,306,348) - (357,588) Other debts issued - - 1,305,892 Total Other Financing Sources (Uses)(2,756,273) - 948,304 Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 19)- (11,911,246) 30,517,357 Net Change in Fund Balances (1,180,969) (11,927,715) 29,732,538 Fund Balances, Beginning of Year, as previously reported 16,303,959 11,927,715 (29,732,538) Restatements 11,166 - - Fund Balances, Beginning of Year, as restated 16,315,125 11,927,715 (29,732,538) Fund Balances, End of Year 15,134,156$ -$ -$ Debt Service RDA Low/Mod Income Housing Special Revenue Funds Debt Service Funds See Notes to Financial Statements 22 CITY OF AZUSA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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 Other debts issued Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 19) 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 1,760,113$ 29,353,626$ - 2,201,117 - 1,270,221 3,353,505 3,482,499 1,517,495 3,399,276 130,304 872,118 - 978,829 89,567 109,255 319,834 1,492,038 7,170,818 43,158,979 1,058,236 10,070,713 4,115,318 20,379,672 1,540,338 3,223,201 412,517 3,770,465 6,443,854 7,358,644 1,401,475 1,554,151 230,000 2,615,717 146,041 2,537,665 15,347,779 51,510,228 (8,176,961) (8,351,249) 4,350,557 5,900,632 (154,434) (4,818,370) - 1,305,892 4,196,123 2,388,154 (8,518,112) 10,087,999 (12,498,950) 4,124,904 23,369,935 21,869,071 11,660 22,826 23,381,595 21,891,897 10,882,645$ 26,016,801$ 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, 2012 Net change in fund balances - total governmental funds 4,124,904$ 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. Capital outlay 979,158$ Depreciation (2,167,447) Disposal of assets (382) (1,188,671) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal repayments 2,615,717 Amortization of bond premiums/discounts 777 Accrued interest on Obligation debt (901,162) 1,715,332 Debt issuance costs are expenditures in governmental funds, but these costs are capitalized on the statement of net assets.(66,312) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.(82,852) 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.(1,996,646) Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB as expenditures, however in the statement of activities only the ARC is an expense. Net OPEB Liability 1,153,740 Net Pension Asset (88,940) 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.(2,001,373) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities.1,500,054 Extraordinary gains and losses relating to capital assets and long term liabilities transferred to the Successor Agency are reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in the governmental funds. Capital assets (1,923,425)$ Long-term liabilities 51,124,589 Accrued interest on advances 1,342,899 Deferred revenue (698,230) 49,845,833 Change in net assets of governmental activities 52,915,069$ See Notes to Financial Statements 24 CITY OF AZUSA BUDGETARY COMPARISON STATEMENT BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated 16,315,125$ 16,315,125$ 16,315,125$ -$ Resources (Inflows): Taxes 25,102,625 25,102,625 24,513,944 (588,681) Assessments 3,029,250 3,029,250 2,201,117 (828,133) Licenses and permits 787,300 787,300 1,270,221 482,921 Intergovernmental 255,880 255,880 128,994 (126,886) Charges for services 2,840,510 1,372,710 1,881,781 509,071 Use of money and property 520,000 520,000 685,624 165,624 Fines and forfeitures 963,000 963,000 978,829 15,829 Contributions 25,500 25,500 19,688 (5,812) Miscellaneous 309,750 1,366,010 1,172,204 (193,806) Transfers in 1,199,845 1,229,845 1,550,075 320,230 Amounts Available for Appropriation 51,348,785 50,967,245 50,717,602 (249,643) Charges to Appropriation (Outflow): General government City Council 148,560 148,560 129,447 19,113 City Attorney 236,315 259,015 257,978 1,037 Administration 546,240 449,430 445,000 4,430 Promotion / Membership 182,710 184,710 182,480 2,230 City Clerk 475,220 475,220 552,034 (76,814) Library Services - General 1,403,445 1,368,670 1,293,920 74,750 Library Services - Youth 27,680 27,680 26,863 817 Finance - Accounting 1,022,770 1,020,770 936,537 84,233 Cash Management 122,785 147,785 145,320 2,465 Purchasing 341,125 336,235 342,304 (6,069) Printing Services 13,150 12,000 8,786 3,214 Human Resources 303,635 348,105 292,432 55,673 City-wide 2,710,430 2,635,110 2,563,366 71,744 Admin Services / Business License 309,765 334,765 357,065 (22,300) Public safety Police 15,069,315 14,687,425 15,236,563 (549,138) Emergency Services 157,475 157,475 205,007 (47,532) Police Department Contracts 852,810 753,342 722,857 30,485 Area D - - 97,927 (97,927) Pension - Safety 5,000 5,000 2,000 3,000 Community development Planning 579,255 584,435 667,170 (82,735) Building Regulation 571,340 571,340 566,261 5,079 Code Enforcement 467,315 467,315 449,432 17,883 Parks and recreation Recreation 1,418,975 1,438,495 1,516,134 (77,639) Parks Maintenance 1,552,265 1,632,265 1,611,358 20,907 Senior Programs 189,490 192,890 193,824 (934) Women's Club 28,235 24,835 23,042 1,793 Afterschool Programs - 13,590 13,590 - Public works Engineering Service 251,040 189,380 192,618 (3,238) Graffiti Removal 134,820 139,820 123,570 16,250 Facilities Maintenance 521,450 596,162 598,602 (2,440) Capital outlay 28,210 157,028 152,676 4,352 Debt service:- Principal retirement 625,000 625,000 625,000 - Interest and fiscal charges 417,060 907,060 745,935 161,125 Transfers out 4,127,330 4,131,530 4,306,348 (174,818) Total Charges to Appropriations 34,840,215 35,022,442 35,583,446 (561,004) Budgetary Fund Balance, June 30 16,508,570$15,944,803$15,134,156$ (810,647)$ See Notes to Financial Statements 25 CITY OF AZUSA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets: Current: Cash and investments 13,996,936$ 9,936,553$ 2,617,850$ 26,551,339$ 4,132,245$ Receivables: Accounts 4,398,519 4,897,035 666,632 9,962,186 3,917 Notes and loans 869 77,485 276 78,630 8,413 Accrued interest - - 1,005 1,005 14,276 Prepaid costs 50 8,650 - 8,700 17,794 Due from other governments - 106,518 - 106,518 48,279 Due from other funds 4,857,861 - - 4,857,861 - Inventories - 1,624,772 - 1,624,772 - Land held for resale 2,919,646 - - 2,919,646 - Restricted: Cash and investments - 13 - 13 - Cash with fiscal agent 5,899,974 2,015,160 4,100,129 12,015,263 - Cash held for rate stabilization - 9,579,363 - 9,579,363 - Total Current Assets 32,073,855 28,245,549 7,385,892 67,705,296 4,224,924 Noncurrent: Deferred debt issuance costs 828,921 268,123 68,492 1,165,536 - Advances to other funds - 1,006,000 - 1,006,000 - Advances to Successor Agency 1,221,413 12,023,839 - 13,245,252 22,154,005 Capital assets - net of accumulated depreciation 90,546,046 30,218,868 8,809,361 129,574,275 1,460,446 Total Noncurrent Assets 92,596,380 43,516,830 8,877,853 144,991,063 23,614,451 Total Assets 124,670,235$ 71,762,379$ 16,263,745$ 212,696,359$ 27,839,375$ Liabilities and Net Assets: Liabilities: Current: Accounts payable 1,599,572$ 1,095,906$ 512,852$ 3,208,330$ 585,906$ Accrued liabilities 73,924 98,406 24,663 196,993 150,022 Accrued interest 1,328,394 83,330 - 1,411,724 - Deposits payable 826,102 2,427,187 - 3,253,289 1,423 Due to other governments 32,384 - - 32,384 - Due to other funds - - - - 41,841 Accrued compensated absences 304,021 391,558 78,471 774,050 333,397 Accrued claims and judgments - - - - 520,070 Bonds, notes, and capital leases 320,000 530,000 225,000 1,075,000 - Total Current Liabilities 4,484,397 4,626,387 840,986 9,951,770 1,632,659 Noncurrent: Accrued compensated absences 68,299 151,878 13,573 233,750 142,831 Accrued claims and judgments - - - - 1,203,521 Bonds, notes, and capital leases 65,697,033 8,097,896 5,405,000 79,199,929 - Total Noncurrent Liabilities 65,765,332 8,249,774 5,418,573 79,433,679 1,346,352 Total Liabilities 70,249,729 12,876,161 6,259,559 89,385,449 2,979,011 Net Assets: Invested in capital assets, net of related debt 29,844,351 22,601,781 7,279,490 59,725,622 1,460,446 Restricted for debt service - 1,265,830 - 1,265,830 - Restricted for rate stabilization - 9,579,363 - 9,579,363 - Unrestricted 24,576,155 25,439,244 2,724,696 52,740,095 23,399,918 Total Net Assets 54,420,506 58,886,218 10,004,186 123,310,910 24,860,364 Total Liabilities and Net Assets 124,670,235$ 71,762,379$ 16,263,745$ 212,696,359$ 27,839,375$ Reconciliation of Net Assets to the Statement of Net Assets Net Assets per Statement of Net Assets - Proprietary Funds 123,310,910$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds 1,364,084 Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds 197,042 Net Assets per Statement of Net Assets 124,872,036$ Business-Type Activities - Enterprise Funds Water Light See Notes to Financial Statements 26 CITY OF AZUSA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 20,062,118$ 40,962,648$ 5,200,822$ 66,225,588$ 11,151,360$ Interdepartmental charges 100,914 137,478 - 238,392 - Miscellaneous 13,523 - 5,738 19,261 35,166 Total Operating Revenues 20,176,555 41,100,126 5,206,560 66,483,241 11,186,526 Operating Expenses: Administration and general 6,370,992 6,526,731 - 12,897,723 8,914,358 Source of supply 967,103 24,316,746 - 25,283,849 391,254 Pumping 48,117 - - 48,117 - Transmission/collection 1,750,084 3,150,112 - 4,900,196 - Treatment 470,399 - 1,451,016 1,921,415 - Refuse collection - - 2,851,882 2,851,882 - Cost of sales and services 3,229,268 158,232 79,775 3,467,275 - Claims expense - - - - 872,867 Depreciation expense 3,579,192 1,249,282 358,080 5,186,554 291,161 Total Operating Expenses 16,415,155 35,401,103 4,740,753 56,557,011 10,469,640 Operating Income (Loss)3,761,400 5,699,023 465,807 9,926,230 716,886 Nonoperating Revenues (Expenses): Taxes - - 555,225 555,225 - Interest revenue 360,977 486,909 36,649 884,535 1,310,252 Interest expense (2,907,756) (324,756) (149,991) (3,382,503) - Special franchise fees (353,474) (3,556,258) (44,894) (3,954,626) - Gain (loss) on disposal of capital assets - - (1,350) (1,350) (50,068) Gain (loss) on disposal of land held for resale - (1,964,653) - (1,964,653) - Total Nonoperating Revenues (Expenses) (2,900,253) (5,358,758) 395,639 (7,863,372) 1,260,184 Income (Loss) Before Transfers 861,147 340,265 861,446 2,062,858 1,977,070 Transfers out (4,568) (41,390) (756,330) (802,288) (279,974) Changes in Net Assets 856,579 298,875 105,116 1,260,570 1,697,096 Net Assets: Beginning of Year, as previously reported 53,563,927 58,573,375 9,899,070 122,036,372 23,163,268 Restatements - 13,968 - 13,968 - Beginning of Fiscal Year, as restated 53,563,927 58,587,343 9,899,070 122,050,340 23,163,268 End of Fiscal Year 54,420,506$ 58,886,218$ 10,004,186$ 123,310,910$ 24,860,364$ 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 1,260,570$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds 197,042 Changes in Net Assets of Business-Type Activities per Statement of Activities 1,457,612$ Business-Type Activities - Enterprise Funds Water Light See Notes to Financial Statements 27 CITY OF AZUSA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 18,799,399$ 46,111,513$ 5,121,584$ 70,032,496$10,714,247$ Cash received from/(paid to) interfund service provided 100,914 137,478 - 238,392 - Cash paid to suppliers for goods and services (6,703,887) (27,824,494) (4,424,635) (38,953,016) (826,821) Cash paid to employees for services (6,358,333) (6,463,368) (15,108) (12,836,809) (8,925,021) Net Cash Provided (Used) by Operating Activities 5,838,093 11,961,129 681,841 18,481,063 962,405 Cash Flows from Non-Capital Financing Activities: Cash transfers out (4,568) (41,390) (756,330) (802,288) (279,974) Cash due to other funds -- 3,237,387 Cash due from other funds (4,857,861)-- (4,857,861)- Advance to successor agency (38,892) (326,085)- (364,977) (1,807,604) Repayments received from other funds ---- 13,249 Net Cash Provided (Used) by Non-Capital Financing Activities (4,901,321) (367,475) (756,330) (6,025,126) 1,163,058 Cash Flows from Capital and Related Financing Activities: Proceeds from capital debt 8,715,000 5,820,000 5,630,000 20,165,000 - Acquisition and construction of capital assets (1,518,039) (510,837) (30,700) (2,059,576) (232,091) Principal paid on capital debt (15,002,087) (6,210,713) (1,758,104) (22,970,904)- Interest paid on capital debt (3,324,726) (530,578) (181,687) (4,036,991)- Special franchise fees received (353,474) (3,556,258) (44,894) (3,954,626)- Taxes received -- 555,225 555,225 - Proceeds from sales of land - (1,964,653)- (1,964,653)- Net Cash Provided (Used) by Capital and Related Financing Activities (11,483,326) (6,953,039) 4,169,840 (14,266,525) (232,091) Cash Flows from Investing Activities: Repayment received on loans 441 --441 10,176 Issuance of new loans - (3,345) (276) (3,621) (3,310) Interest received 396,716 513,480 37,469 947,665 1,320,480 Net Cash Provided (Used) by Investing Activities 397,157 510,135 37,193 944,485 1,327,346 Net Increase (Decrease) in Cash and Cash Equivalents (10,149,397) 5,150,750 4,132,544 (866,103) 3,220,718 Cash and Cash Equivalents at Beginning of Year 30,046,307 16,380,339 2,585,435 49,012,081 911,527 Cash and Cash Equivalents at End of Year 19,896,910$ 21,531,089$ 6,717,979$ 48,145,978$4,132,245$ Business-Type Activities - Enterprise Funds Water Light See Notes to Financial Statements 28 CITY OF AZUSA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 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)3,761,400$ 5,699,023$ 465,807$ 9,926,230$ 716,886$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Fund balance restatements -13,968 -13,968 - Depreciation 3,579,192 1,249,282 358,080 5,186,554 291,161 (Increase) decrease in accounts receivable (1,368,533) (718,133) (84,976) (2,171,642) 43,336 (Increase) decrease in land held for resale - 5,278,307 - 5,278,307 - (Increase) decrease in inventories - (98,575) (9,200) (107,775)- (Increase) decrease in prepaid expense 231 (6,900)- (6,669) 61,842 (Increase) decrease in due from other governments - 9,076 -9,076 - (Increase) decrease in deposits receivable 36,325 79,458 - 115,783 - Increase (decrease) in accounts payable (231,253) (93,929) (41,962) (367,144) 17,018 Increase (decrease) in accrued liabilities 11,879 17,858 29,737 - Increase (decrease) in deposits payable 55,966 486,189 - 542,155 5,026 Increase (decrease) in due to other governments (7,894)-- (7,894)- Increase (decrease) in claims and judgments ---- (157,175) Increase (decrease) in compensated absences 780 45,505 (5,908) 40,377 (15,689) Total Adjustments 2,076,693 6,262,106 216,034 8,554,833 245,519 Net Cash Provided (Used) by Operating Activities 5,838,093$ 11,961,129$ 681,841$ 18,481,063$962,405$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets -$ -$ (1,350)$ (1,350)$ -$ Amortization of bond discount 107,201 (26,391) (51,896) 28,914 - Amortization of cost of issuance (70,729) (61,049) (11,283) (143,061)- Gain/(Loss) on defeasance (909,797) (408,387)- (1,318,184)- See Notes to Financial Statements 29 CITY OF AZUSA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 Agency Funds Assets: Pooled cash and investments 4,927,533$ 6,085,910$ Receivables: Accounts 609 5,798,194 Taxes 975,188 - Notes and loans - 1,708,777 Due from other governments - 9,794,211 Land held for resale - 15,903,913 Deferred charges - 1,627,941 Capital assets, net of depreciation - 1,889,114 Total Assets 5,903,330 42,808,060 Liabilities: Accounts payable 5,866,701 1,542,775 Accrued liabilities 4,878 - Accrued interest - 1,216,307 Unearned revenues - 1,082,880 Deposits payable 22,706 15,000 Due to other governments 9,045 14,285,848 Advance due to the City - 35,399,257 Long-term liabilities: Due in one year - 1,235,000 Due in more than one year - 51,672,467 Total Liabilities 5,903,330 106,449,534 Net Assets: Held in trust for other purposes - (63,641,474) Total Net Assets -$ (63,641,474)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 30 CITY OF AZUSA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2012 Additions: Taxes 1,896,023$ Interest and change in fair value of investments 8,786 Contributions from City 4,250 Miscellaneous 30,009 Total Additions 1,939,068 Deductions: Administrative expenses 303,275 Contractual services 4,253,235 Interest expense 1,101,552 Depreciation expense 34,311 Total Deductions 5,692,373 Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 19)(59,888,169) Changes in Net Assets (63,641,474) Net Assets - Beginning of the Year - Net Assets - End of the Year (63,641,474)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 31 THIS PAGE INTENTIONALLY LEFT BLANK 32 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 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. The Redevelopment Agency was dissolved as of January 31, 2012, through the Supreme Court decision on Assembly Bill 1X 26. See Note 19 for more information on the dissolution. 33 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012 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 was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 19 for more information on the dissolution. • The Redevelopment Agency Debt Service Fund accounts for payments of principal and interest on the long-term debt of the Azusa Redevelopment Agency. The Redevelopment Agency was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 19 for more information on the dissolution. 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 Funds 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. 35 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • 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. • The private purpose trust fund accounts for the assets and liabilities of the former Redevelopment Agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. 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 funds consist of an Agency fund and Private Purpose Trust funds. Agency funds are custodial in nature, assets equal liabilities. The Private Purpose Trust funds accounts for the assets and liabilities of the former Redevelopment Agency, and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. Both Agency funds and Proprietary Funds are presented on the accrual basis of accounting. 36 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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. 37 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. • 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. 38 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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, proprietary fund types fund financial statements, and private purpose trust fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities, business-type activities, proprietary fund types statement of net assets, or private purpose fund types 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 39 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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 an expenditure is incurred for which both restricted and unrestricted fund balance is available. Similarly, when an 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 40 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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 26,551,339$ 4,132,245$ Restricted: Cash and investments 13 - Cash with fiscal agent 12,015,263 - Cash held for rate stabilization 9,579,363 - Total 48,145,978$ 4,132,245$ 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 ($18,682,717) long-term debt difference is as follows: 41 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Long-term debt: Developer loans payable (10,005,461)$ Certificates of participation (3,025,000) Taxable pension bonds (5,555,000) Deferred premium on bonds and COP (to be amortized over life of debt)(97,256) Net adjustment to reduce fund balance of total governmental funds to arrive at net assets of governmental activities (18,682,717)$ 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 the 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 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 $1,715,332 difference is as follows: Debt issued or incurred: Developer loan (901,162)$ Principal repayments and amortizations: Tax allocation bonds 1,180,000 Certificates of participation 230,000 Pension bonds 625,000 Developer loans 580,717 Bond discount/premium 777 Net adjustment to decrease net changes in fund balance of total governmental funds to arrive at changes in net assets of governmental activities.1,715,332$ 42 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 Low/Mod Income Housing Fund, Highway 39 Fund, the Capital Projects Fund, the Capital Projects Redevelopment Agency Fund, and the Debt Service Redevelopment Agency Fun 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 $100,000 or more must be approved by City Council. Spending control (legal level of control) is established by the amount of expenditures budgeted at the department level. During the year, several supplementary appropriations were necessary. Individual amendments were not material in relation to the original appropriations. b. Expenditures Over Appropriations Excess of expenditures over appropriations in individual funds are as follows: Expenditures Appropriations Excess General Fund: General Government: City Clerk 552,034$ 475,220$ (76,814)$ Purchasing 342,304 336,235 (6,069) Admin Services/Business License 357,065 334,765 (22,300) Public Safety: Police 15,236,563 14,687,425 (549,138) Emergency Services 205,007 157,475 (47,532) Area D 97,927 - (97,927) Community Development Planning 667,170 584,435 (82,735) Parks and Recreation Recreation 1,516,134 1,438,495 (77,639) Senior Programs 193,824 192,890 (934) Public Works Engineering Service 192,618 189,380 (3,238) Facilities Maintenance 598,602 596,162 (2,440) Fund 43 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 c. Deficit Fund Balance The following funds had a deficit fund balance as of June 30, 2012: Nonmajor Funds: Governmental: Proposition A Fund (172,190)$ Community Development Block Grant (10,273) Capital Projects (2,000) Internal Service Funds: Central Services (6,077) IT Services (2,504) Fiduciary Funds: Private Purpose Trust Fund: Successor Agency of the Former Redevelopment Agency (63,687,137) 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, 2012, cash and investments were reported in the accompanying financial statements as follows: Governmental Activities: Cash and investments 14,470,016$ Restricted Cash and investments 30,848 Cash with fiscal agents 663,118 Business-type activities: Cash and investments 27,791,189 Restricted Cash and investments 13 Cash with fiscal agents 12,015,263 Cash held for rate stabilization 9,579,363 Fiduciary Funds: Agency Funds: Cash and investments 4,927,533 Private-Purpose Trust: Cash and investments 6,085,910 Total Cash and Investments 75,563,253$ 44 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) 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, 2012, the carrying amount of the City’s deposits was, $3,285,091 and the bank balance was $3,743,188 The $458,097 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 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. A provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides temporary unlimited deposit insurance coverage for noninterest-bearing transaction account at all FDIC-insured institutions. This provision was effective from December 31, 2010 and will remain effective until December 31, 2012. Noninterest- bearing transaction accounts is defined as an account (1) with respect to which interest is neither accrued nor paid; (2) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (3) on which the FDIC-insured depository institutions does not reserve the right to require advance notice of an intended withdrawal. As of June 30, 2012, the City maintains cash deposits that are temporarily covered by this provision. 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 45 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) • 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. 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, 2012, the City’s investments in Federal Agency securities consisted of investments with Federal Home Loan Bank and Federal Farm Credit Bank. At June 30, 2012, all Federal Agency Securities were rated AA+ by Standard & Poor’s. All securities were investment grade and were legal under State and City law. As of June 30, 2012, the City's investments in external investment pools and money market mutual funds are unrated. Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the 46 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) 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, 2012, 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 types 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, 2012, the City has investments of $16,240,454 (22.5%) with Federal Home Loan Bank and $7,300,725 (10.1%) with Federal Home Loan Mortgage Corporation. Investments guaranteed by the U.S. government, investments in mutual funds and external investment pools are excluded from this requirement. Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that no investment may have a maturity of more than five years without receiving prior City Council approval. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated with bond issues may have a maturity of more than five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2012, the City had the following investments and original maturities: 6 months 6 months 1 to 3 3 to 5 Fair or less to 1 year years years Value Federal agency securities -$ -$ 5,035,730$ 18,505,449$ 23,541,179$ Local Agency Investment Fund 22,749,615 - - - 22,749,615 Certificates of Deposit - 498,676 3,776,157 875,983 5,150,816 Money market mutual funds 4,024,235 - - - 4,024,235 Cash with Fiscal Agents: Money market mutual funds 14,150,290 - - - 14,150,290 Certificates of Deposit 162,521 - 2,499,506 - 2,662,027 41,086,661$ 498,676$ 11,311,393$ 19,381,432$ 72,278,162$ Remaining Investment Maturities Note 4: Advances to Successor Agency The Successor Agency received advances from the Water and Light Funds for various project expenditures and SERAF loans. These have currently been denied by the Department of Finance as an enforceable obligation. Advances due to the City are dependent on the Successor Agency receiving a notice of completion by the Department of Finance. Once this is received the Successor Agency can re-submit the obligation for approval as an enforceable obligation. Repayment will be determined at that time. 47 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: Capital Assets Capital asset activity for the year ended June 30, 2012, was as follows: Beginning Transfers to Ending Balance Transfers Increases Decreases Successor Agency* Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 1,729,956$ -$ -$ -$ (410,420)$ 1,319,536$ Construction-in-progress 1,145,104 (1,103,554) 29,672 - - 71,222 Total Capital Assets Not Being Depreciated 2,875,060 (1,103,554) 29,672 - (410,420) 1,390,758 Capital Assets, Being Depreciated: Land improvements 5,851,055 - - - (1,427,803) 4,423,252 Buildings and structures 12,224,576 - - - - 12,224,576 Machinery and equipment 7,321,973 - 35,995 - - 7,357,968 Automotive equipment 3,227,929 - - (84,402) - 3,143,527 Infrastructure 45,469,116 1,103,554 913,492 - (718,430) 46,767,732 Total Capital Assets Being Depreciated 74,094,649 1,103,554 949,487 (84,402) (2,146,233) 73,917,055 Less Accumulated Depreciation: Land improvements 3,155,210 - 164,212 - (605,403) 2,714,019 Buildings and structures 4,738,948 - 286,325 - - 5,025,273 Machinery and equipment 5,895,178 - 281,252 - - 6,176,430 Automotive equipment 2,138,776 - 201,755 (46,668) - 2,293,863 Infrastructure 28,885,550 - 1,377,807 - (27,825) 30,235,532 Total Accumulated Depreciation 44,813,662 - 2,311,351 (46,668) (633,228) 46,445,117 Total Capital Assets Being Depreciated, Net 29,280,987 1,103,554 (1,361,864) (37,734) (1,513,005) 27,471,938 Governmental Activities Capital Assets, Net 32,156,047$ -$ (1,332,192)$ (37,734)$ (1,923,425)$ 28,862,696$ *As a result of the dissolution of the Redevelopment Agency, assets of the former Redevelopment Agency were transferred to the Successor Agency. See Note 19 for additional information. 48 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: 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 1,804,845 (3,397,159) 1,610,693 - 18,379 Total Capital Assets Not Being Depreciated 4,793,818 (3,397,159) 1,610,693 - 3,007,352 Capital Assets, Being Depreciated: Land improvements 1,212,318 - - - 1,212,318 Building and structures 22,635,772 - - - 22,635,772 Machinery and equipment 12,308,811 397,011 71,882 - 12,777,704 Automotive equipment 3,574,840 - 123,896 (13,373) 3,685,363 Infrastructure 144,957,526 3,000,148 472,018 (25,176) 148,404,516 Total Capital Assets Being Depreciated 184,689,267 3,397,159 667,796 (38,549) 188,715,673 Less Accumulated Depreciation: Land improvements 634,723 - 39,660 - 674,383 Building and structures 7,692,756 - 526,915 - 8,219,671 Machinery and equipment 8,821,419 - 494,088 (12,484) 9,303,023 Automotive equipment 3,000,160 - 139,511 (25,176) 3,114,495 Infrastructure 35,866,964 - 4,133,637 - 40,000,601 Total Accumulated Depreciation 56,016,022 - 5,333,811 (37,660) 61,312,173 Total Capital Assets Being Depreciated, Net 128,673,245 3,397,159 (4,666,015) (889) 127,403,500 Business-Type Activities Capital Assets, Net 133,467,063$ -$ (3,055,322)$ (889)$ 130,410,852$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 140,602$ Public safety 156,584 Community development 22,262 Parks and recreation 387,118 Public works 1,460,881 Internal service funds 143,904 Total 2,311,351$ Business-Type Activities: Water 3,579,192$ Light 1,249,282 Sewer/Wastewater 358,080 Internal service funds 147,257 Total 5,333,811$ 49 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: 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, 2012: Beginning at Ending Due within July 1, 2011 Addition Deletion June 30, 2012 one year CITY Compensated Absences 3,476,067$ -$ 2,364,776$ (2,497,730)$ 3,343,113$ 2,402,196$ Net OPEB Liability 6,207,671 - 1,153,740 - 7,361,411 2008 Taxable pension funding bonds 6,180,000 - - (625,000) 5,555,000 700,000 Obligation under developer agreements 9,685,015 901,163 ** (580,717) 10,005,461 Total City 25,548,753 - 4,419,679 (3,703,447) 26,264,985 3,102,196 Public Financing Authority 2003 Certificates of Participation 3,255,000 - - (230,000) 3,025,000 240,000 Redevelopment Agency: 2003 Tax Allocation Refunding 8,355,000 (7,880,000) - (475,000) - - 2005 TaxAllocation, Series A 9,518,014 (9,518,014) - - - - 2007 Tax Allocation, Series A 14,690,000 (14,280,000) - (410,000) - - 2007 Tax Allocation, Series B 4,540,000 (4,450,000) - (90,000) - - 2008 Tax Allocation, Series A 6,565,000 (6,485,000) - (80,000) - - 2008 Tax Allocation, Series B 11,100,000 (10,975,000) - (125,000) - - Total Redevelopment Agency 54,768,014 (53,588,014) - (1,180,000) - - Internal Service Funds: Compensated Absences 235,069 - 149,144 (152,213) 232,000 150,226 Claims and Judgements payable 1,880,766 - 396,600 (553,775) 1,723,591 520,070 Total Internal Service 2,115,835 - 545,744 (705,988) 1,955,591 670,296 Unamortized Premiums/Discounts Premiums 138,112 - - (23,009) 115,103 N/A Discounts (827,784) 787,706 - 22,231 (17,847) N/A Total Premiums Discounts (689,672) 787,706 - (778) 97,256 - Total Governmental Long-term Debt 84,997,930$ (52,800,308)$ 4,965,423$ (5,820,213)$ 31,342,832$ 4,012,492$ **Addition of $901,163 related to accreted interest for the fiscal year. Transfers to Successor Agency * *As a result of the dissolution of the Redevelopment Agency, indebtedness of the former Redevelopment Agency was transferred to the Successor Agency. See Note 19 disclosures for indebtedness. 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. 50 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: 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 $1,175,000 on January 1 each year from 2010 through 2018. The annual principal requirements to amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2012, are as follows: Principal Interest 2012-2013 700,000$ 361,075$ 2013-2014 780,000 315,575 2014-2015 870,000 264,875 2015-2016 965,000 208,325 2016-2017 1,065,000 145,600 2018-2022 1,175,000 76,375 Total 5,555,000$ 1,371,825$ 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, 2012, 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, 2012, was $3,025,000. The annual requirements to repay the outstanding indebtedness at June 30, including interest, are shown in the schedule below: Principal Interest 2012-2013 240,000$ 119,650$ 2013-2014 245,000 111,040 2014-2015 255,000 101,849 2015-2016 265,000 91,768 2016-2017 275,000 80,968 2018-2022 1,745,000 189,588 Total 3,025,000$ 694,863$ 2003 Certificates of Participation 51 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) 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, 2014, the unpaid balance will be forgiven. The outstanding principal and matured unpaid interest balance at June 30, 2012, was $10,005,461. On May 15, 1989, the Agency entered into an agreement with the City of Azusa to transfer all sales tax revenues received by the Agency under the Price Company developer agreement to the City, except that required for repayment of the note or other required purposes. Due to the dissolution of the Redevelopment Agency, the City has elected to continue this agreement under the City of Azusa. 52 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) b. Long-Term Debt – Business-Type Activities The following is a summary of changes in long-term debt for the year ended June 30, 2012: Balances at Balances at Due Within July 1, 2011 Additions Deletions Defeased June 30, 2012 One Year Water Fund: Compensated absences 371,540$ 304,164$ (303,384)$ -$ 372,320$ 304,021$ 2003 Certificates of participation, Series A 14,835,000 - (870,000) (13,965,000) - - 2006 Water Revenue Bonds 54,275,000 - (310,000) - 53,965,000 320,000 - 8,715,000 - - 8,715,000 - Total Water Fund 69,481,540 9,019,164 (1,483,384) (13,965,000) 63,052,320 624,021 Light Fund: Compensated absences 497,931 404,276 (358,771) - 543,436 391,558 2003 Certificates of participation, Series B and C 9,045,000 - (505,000) (5,470,000) 3,070,000 530,000 - 5,820,000 - - 5,820,000 - Total Light Fund 9,542,931 6,224,276 (863,771) (5,470,000) 9,433,436 921,558 Sewer/Wastewater Fund: Compensated absences 97,952 77,600 (83,508) - 92,044 78,471 1994 Certificates of participation 1,810,000 - (115,000) (1,695,000) - - 2011 Sewer Installment Loan, Series A - 1,490,000 - - 1,490,000 105,000 2011 Sewer Installment Loan, Series B - 4,140,000 - - 4,140,000 120,000 Total Sewer/Wastewater Fund 1,907,952 5,707,600 (198,508) (1,695,000) 5,722,044 303,471 Internal Service Funds: Compensated absences 256,848 301,555 (314,175) - 244,228 183,171 Total Internal Service 256,848 301,555 (314,175) - 244,228 183,171 Total Business-Type Funds 81,189,271$ 21,252,595$ (2,859,838)$ (21,130,000)$ 78,452,028 2,032,221$ Unamortized bond premiums 4,393,116 Unamortized loss on defeasance (1,318,187) 81,526,957$ 2012 Electric Refunding Bonds, Series B 2012 Water Refunding Bonds, Series A 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. 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 bonds were advance refunded during the year in the amount of $13,965,000, resulting in an economic gain of $1,192,868. 53 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) 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 $13,230,000 and interest ranges from 3.920% to 4.380%. The annual requirements to amortize the outstanding bonds as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 320,000$ 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 2016-2017 1,145,000 2,504,313 2018-2022 6,660,000 11,579,438 2023-2027 8,500,000 9,741,281 2028-2032 10,820,000 7,420,500 2033-2037 13,890,000 4,347,500 2038-2042 10,165,000 779,375 Totals 53,965,000$ 46,820,584$ 2006 Water Revenue Bonds 2012 Water Refunding Revenue Bonds On May 23, 2012, the City issued $8,715,000 of 2012 Water System Refunding Revenue Bonds, Series A. The proceeds were primarily used to advance refund all of the City’s obligations in connection with the Financing Authority for Resource Efficiency of California Certificates of Participation, 2003 Series A, which was issued for capital improvements. The bonds are payable solely from the Water net revenues, and the City is not obligated to pay them except from the applicable Water net revenues. Serial bonds mature in annual installments beginning on July 1, 2013 through July 1, 2023, in amounts ranging from $310,000 to $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. 54 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) The annual requirements to amortize the outstanding bonds as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 -$ 168,676$ 2013-2014 670,000 325,651 2014-2015 690,000 303,600 2015-2016 710,000 282,600 2016-2017 735,000 260,925 2018-2022 4,045,000 901,275 2023-2027 1,865,000 94,375 Totals 8,715,000$ 2,337,102$ 2012 Water Refunding Revenue Bonds, Series A 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. 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 bonds were advance refunded during the year in the amount of $5,470,000, resulting in an economic gain of $322,795. 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, 2012, the reserve requirement of $652,500 was fully funded. The Series C Electric Certificates maturing 2004 to 2023 are serial certificates payable in annual installments of $565,000 to $915,000. Interest is payable semi-annually on each July 1 and January 1 of each year, commencing January 1, 2004, at rates ranging from 1.46% to 5.57% per annum. The outstanding principal balance at June 30, 2012, was $3,070,000. 55 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) The annual requirements to amortize the outstanding certificates of participation as of June 30, 2012, including interest, are as follows: Principal Interest 2012-2013 530,000$ 152,959$ 2013-2014 555,000 124,911 2014-2015 585,000 94,272 2015-2016 620,000 60,713 2016-2017 650,000 25,344 2018-2022 130,000 3,621 Totals 3,070,000$ 461,820$ Electric - Certificates of Participation, Series C 2012 Electric Refunding Revenue Bonds On May 23, 2012, the City issued $5,820,000 of 2012 Electric System Refunding Revenue Bonds, Series B. The proceeds were primarily used to advance refund all of the City’s obligations in connection with the Financing Authority for Resource Efficiency of California Certificates of Participation, Series B. The bonds are payable solely from the Electric net revenues, and the City is not obligated to pay them except from the applicable Electric net revenues. Serial bonds mature in annual installments beginning on July 1, 2017 through July 1, 2023, in amounts ranging from $650,000 to $930,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. Debt covenants require that the City maintain a reserve account equal $582,000. At June 30, 2012, the reserve requirement was fully funded. The annual requirements to amortize the outstanding bonds as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 -$ 93,149$ 2013-2014 - 175,569 2014-2015 - 175,569 2015-2016 - 175,569 2016-2017 - 175,569 2018-2022 3,985,000 614,694 2023-2027 1,835,000 54,859 Totals 5,820,000$ 1,464,978$ 2012 Electric Refunding Revenue Bonds, Series B 56 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Long-Term Debt (Continued) 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. The outstanding principal balance was fully defeased during the fiscal year ended June 30, 2012. 2011 Sewer Installment Agreement Series A and B On November 29, 2011, the City of Azusa entered into an installment Sale Agreement with Capitol One Public Funding, LLC totaling $5,630,000. The proceeds were used to defease the 1994 Sewer System Certificates of Participation, which was used for improvements on the sewer system. The agreement specified the installments consisted of $1,490,000 of Series A installments and $4,140,000 of Series B installments. The Series A installments have annual principal payments beginning on August 1, 2012 through August 1, 2020 ranging from $105,000 to $190,000. Interest rates on the Series A installments are 2.900%. The Series B installments have annual principal payments beginning on August 1, 2012 through August 1, 2025 ranging from $120,000 to $505,000. Interest rates on the Series B installments are 3.600%. The annual requirements to amortize the outstanding installment agreements as of June 30, 2012, including interest are as follows: Principal Interest Principal Interest 2012 - 2013 105,000$ 41,688$ 120,000$ 146,880$ 2013 - 2014 160,000 37,845 165,000 141,750 2014 - 2015 160,000 33,205 190,000 135,360 2015 - 2016 165,000 28,493 200,000 128,340 2016 - 2017 170,000 23,635 205,000 121,050 2017 - 2022 730,000 43,065 1,335,000 483,750 2022 - 2027 - - 1,925,000 141,570 Totals $1,490,000 $207,931 $4,140,000 $1,298,700 2011 Sewer Installment Series A 2011 Sewer Installment Series B 57 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Mortgage Revenue Bonds The City of Azusa and the former Azusa Redevelopment Agency have issued various residential mortgage revenue bonds. The proceeds of these bonds were invested in mortgage loans that were made to homeowners for the purpose of financing residential property. These bonds are secured by first trust deeds on those loans and private mortgage insurance. Although the City and the Successor Agency to the former Azusa Redevelopment Agency have arranged this financing program, these bonds are not payable from any revenues or assets of the City or the Successor Agency to the former Azusa Redevelopment Agency. Generally, the bondholders may look only to the mortgage loans and other assets held by trustees for security on the indebtedness. Accordingly, since these bonds do not constitute an obligation of the City or the Successor Agency to the former Azusa Redevelopment Agency, they are not reflected in long-term debt. Year Original Balance at Issued Amount Issued June 30, 2012 Due Date Taxable Collateralized Refunding Bonds - Series 1992 (Agency) 1992 9,903,000$ 303,000$ December 1, 2012 Single Family Mortgage Revenue Refunding Bonds (Agency)1992 10,000,000 6,670,000 October 1, 2012 Note 8: 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 12.655% for non-safety employees and 28.183% 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, 2012, were as follows: 58 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: Defined Benefit Pension Plan (Continued) Annual required contribution 5,553,375$ Interest on net pension obligation (565,460) Adjustment to annual required contribution 476,520 Annual pension cost 5,464,435 Contribution made 5,553,375 Increase (decrease) in net pension obligation (88,940) Net pension obligation (asset) beginning of year (7,296,257) Net pension obligation (asset) end of year (7,385,197)$ 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 18 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 on age, service and type of employment Inflation 3.00% Payroll Growth 3.25% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3.00% and an annual production growth of 0.25%. Initial plan unfunded liabilities are amortized over a closed period equal to the average amortization period at the plan’s date of entry into the CalPERS Risk Pool. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the risk pool are amortized over a rolling 30-year period. If the plan’s accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. 59 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: 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 6/30/2010 2,655$ 100%-$ 6/30/2011 2,725 100%- 6/30/2012 2,821 100%- Three-Year Trend Information for PERS (Safety Plan) (Amounts in Thousands) Annual Pension Percentage of Net Pension Fiscal Year Cost (APC)APC Contributed Obligation 6/30/2010 2,173$ 105%(7,201)$ 6/30/2011 2,119 105%(7,296) 6/30/2012 2,733 103%(7,385) 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. 60 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: Defined Benefit Pension Plan (Continued) Actuarial Accrued UAAL as Actuarial Actuarial Liability Unfunded a % of Valuation Value of (AAL) Entry AAL Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll 6/30/2008 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) Most recent information available 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, 2012, the covered payroll for employees in the plan was $459,239. Total payroll for the City was $30,008,893. 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, 2012, the employer and the employees each contributed an amount equal to $17,222. Under this plan, normal retirement age is 60 years of age. Plan assets are primarily invested in money market funds. Retirement Enhancement Plan The City of Azusa also contributes to the PARS Retirement Enhancement Plan. The plan provides pension benefits to 116 eligible covered positions in International Brotherhood of Electrical Workers (IBEW), Service Employees International Union Local 721 (SEIU), Azusa Middle Management Association (AMMA), and Executive Management. The plan is administered by Phase II Systems, PARS Trust Administration. Under adopted agreements approved in July and August 2007, both the employer and the employee are required to contribute the following contributions for each participant's compensation: Covered Employer Employee Positions Contribution Contribution IBEW 2.26%2.00% SEIU 0.07%4.00% AMMA 6.41%2.50% Executive Management 4.00%7.00% 61 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 $489,624 was made during the 2011-2012 fiscal year and was not included in the June 30, 2012 actuarial study. The purpose of the contribution was to pay current year premiums for retirees. As a result, the City calculated and recorded a Net OPEB Liability, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC)1,846,264$ Interest on Net OPEB Obligation 30,409 Adjustment to ARC (233,309) Annual OPEB Cost 1,643,364 Contributions made (489,624) (Decrease) increase in Net OPEB obligation 1,153,740 Net OPEB obligation (asset) June 30, 2011 6,207,671 7,361,411$ The contribution rate of 17.7% is based on the ARC of $1,846,264, 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 $1,643,364 was less than the ARC. The last three year trend information on the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented below: Fiscal Year End Annual OPEB Cost Actual Contribution (Net of Adjustments) Percentage of Annual OPEB Cost Contributed Net OPEB Obligation (Asset) 6/30/2010 2,193,000$ 354,782$ 16% 4,181,823$ 6/30/2011 2,465,000 439,152 18% 6,207,671 6/30/2012 1,643,364 489,624 30% 7,361,411 62 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 9: Post-Employment Benefits (Continued) Funded Status and Funding Progress Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Only two year’s are presented as these are the first valuations of the plan. Type of Valuation Actuarial Valuation Date Actuarial Value of Assets Unfunded Actuarial Accrued Liability Funded Ratio Covered Payroll UAAL as percent of Covered Payroll Interest Rate Actual 6/30/2009 -$ 25,445,000$ 0.0% 19,966,000$ 127% 3.50% Actual 6/30/2012 - 17,553,231 0.0% 20,576,383 85% 4.00% Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in the actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2012, actuarial valuation, the projected unit credit method was used. The actuarial assumptions include a 4.00% 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, 2012, 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, 2012, was twenty-six years. The number of active participants is 327. 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 $5,000,000 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 $15,000,000 in excess of the $5,000,000 and excess worker's compensation insurance of $95,000,000 in excess of $5,000,000. 63 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 10: Insurance (Continued) For the past three years, no settlements or claims payments have exceeded the amount of the applicable insurance coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: Claims Incurred Beginning and Changes Less Claim Ending Balance in Estimates Payments Balance 2010-2011 2,302,734$ 809,945$ (1,231,913)$ 1,880,766$ 2011-2012 1,880,766 396,600 (553,775) 1,723,591 Additional losses may result from matters pending before the City. In the opinion of legal counsel and management, the resolution of these matters is not expected to have a material adverse effect on the financial condition of the City. Note 11: Interfund Receivables, Payables and Transfers The composition of interfund balances as of June 30, 2012, was as follows: Due To/From Other Funds Nonmajor General Governmental Internal Fund Funds Service Total Due to Other Funds: Water 4,360,617$ 455,403$ 41,841$ 4,857,861$ Due From other Funds The due from other funds amounts listed above consisted of short-term loans. Advances To/From Other Funds Light Funds Fund Advances From Other Funds: General 256,000$ Nonmajor Governmental Funds 750,000 Total 1,006,000$ Advances To Other Funds: The Light Fund advanced $256,000 to the General Fund and $750,000 to the Capital Projects Fund for various project expenditures. 64 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 11: Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers Nonmajor General Governmental Transfer Out:Fund Funds Total General Fund -$ 4,306,348$ 4,306,348$ Debt Service - Redevelopment Agency Fund 357,588 - 357,588 Nonmajor Governmental Funds 151,999 2,435 154,434 Water Fund - 4,568 4,568 Light Fund 4,184 37,206 41,390 Nonmajor Proprietary Funds 756,330 - 756,330 Internal Service Funds 279,974 - 279,974 Total 1,550,075$ 4,350,557$ 5,900,632$ Transfer In The total transfers from the General Fund were for various operating, capital, and debt service transactions made throughout the year. Transfers from 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 the Non-major Governmental Funds were for various operating transactions made throughout the year. Transfers to General Fund from Redevelopment agency, Non-major Governmental Funds, Non-major Proprietary Funds, and Internal Service Funds were related to interest income, franchise fees and operating transactions. 65 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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.11,166$ Capital Projects RDA Fund To recognize revenue that related to prior year.11,660 Proprietary Funds: Light Fund To properly restate revenues related to prior year.13,968 Beginning net assets has been restated as follows: Governmental Activities: Governmental fund restatements detailed above 22,826$ Business-Type Activities: Enterprise funds restatements detailed above 13,968 Total Net Asset Restatements 36,794$ 66 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 13: Grant and Seizure Fund The Grant and Seizure special revenue fund include the following items in its fund balance: Grants & Seizures (8,940)$ Jack Williams Memorial 600 Grants & Seizures-Police 17 Asset Seizure Federal - Department of Justice 230,143 Asset Seizure County 22,780 Asset Seizure Drug and Gang 7,883 Office of Traffic Safety 2,761 Asset Seizure Federal - Department of Treasury 86 Inmate Welfare Fund 9,099 2009 JAG II (Fed FDS)(2,152) Renew Grant ( LA Cnty)1 AQMD Tree Planting 3,069 Sr Cntr Cyn City Grant 4,155 Senior Restricted Donations 98 Public Library Grant 293,382 Library Restricted Donations 62,358 Gates Foundation 497 Canyon City Foundation 1,327 Broadband Grant (Lib)3,234 Family Place Grant 1,888 Book Clubs 2,488 TLA50 Fellowship Grant (943) Grant-Library youth/Outreach Services (889) Youth Programs 504 Summer Reading 5,234 Special Programs 451 CA Literacy Grant 15,897 General Plan Surcharge 330,019 AB29X Meters 86,607 Oil Block Grant 6,327 Beverage Container Recycling 44,332 Technology Grant 143,057 CIP-Recreation Grants (6,520) Rehab of Zacatecas Park 516 Total 1,259,366$ 67 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012, is as follows: Assets: Current assets 2,722,078$ Restricted assets 4,100,129 Capital assets 8,809,361 Noncurrent assets 68,492 Total assets 15,700,060 Liabilities: Current liabilities 375,706 Noncurrent liabilities 5,418,573 Total liabilities 5,794,279 Net assets: Invested in capital assets, net of related debt 7,279,490 Restricted - Unrestricted 2,626,291 Total net assets 9,905,781$ Condensed Statement of Net Assets Sewer charges 2,225,335$ Depreciation expense (358,080) Other operating expenses (1,530,791) Operating income 336,464 Nonoperating revenues (expenses): Investment earnings 36,649 Interest expense (149,991) Gain (Loss) on disposal of asset (1,350) Special franchise fees (44,894) Transfers out (154,140) Change in net assets 22,738 Beginning net assets 9,883,043 Ending net assets 9,905,781$ Condensed Statement of Revenues, Expenses and Changes in Net Assets Net cash provided (used) by: Operating activities 588,455$ Noncapital financing activities (154,140) Capital and related financing activities 3,614,615 Investing activities 37,193 Net increase (decrease)4,086,123 Beginning cash and cash equivalents 2,478,333 Ending cash and cash equivalents 6,564,456$ Condensed Statement of Cash Flows 68 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012, the City’s ownership of significant projects of SCPPA includes the following: 1% of SCPPA’s $719,242,000 investment (at cost) in the Palo Verde Nuclear Generating Station (with related SCPPA indebtedness of $69,100,000), 1% of SCPPA’s $57,555,000 investment (at cost) in the Mead – Phoenix Transmission Project (with related SCPPA indebtedness of $50,550,000), 2.2% of SCPPA’s $173,574,000 investment (at cost) in the Mead - Adelanto Transmission Project (with related SCPPA indebtedness of $162,645,000), 14.7% of SCPPA’s $245,061,000 investment (at cost) in the San Juan Generating Station (with related indebtedness of $112,140,000), and 4.2% of SCPPA’s $21,000 investment (at cost) in the Hoover Uprating Green Power Project (with related SCPPA indebtedness of $11,355,000). Note 16: Rate Stabilization Fund The City of Azusa has provided for a rate stabilization fund in the amount of $9,579,363 (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. Note 18: 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, AB 1X 26 and 27 (California Redevelopment Association v. Matosantos). AB 1X 26 dissolves redevelopment agencies effective October 1, 2011. AB 1X 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 69 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 18: California Redevelopment Agency Dissolution (Continued) 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 AB 1X 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB 1X 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 AB 1X 26 which dissolves redevelopment agencies, but invalidated in its entirety AB 1X 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB X1 26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The full text of AB 1X 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. As of January 31, 2012, the Redevelopment Agency has been dissolved and the City of Azusa has elected to become the Successor Agency. The Successor Agency will be responsible for winding down the remaining activities of the dissolved Redevelopment Agency. Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Azusa that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-C7. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 70 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss). Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements. The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows: 71 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Total extraordinary gain reported in the governmental funds - decrease to net assets of the Succesory Agency Trust Fund (10,087,999)$ Capital assets recorded in the government-wide financial statements - increase to net assets of the Successor Agency Trust Fund 1,923,425 Unamortized bond issuance costs reported in the government-wide financial statements - increase in net assets of the Successor Agency Bond Trust Fund 1,675,719 Long-term debt reported in the government-wide financial statements - decrease to net assets of the Successor Agency Trust Fund (52,800,308) Removal of deferred revenue related to Notes and Loans Receivable - Increas in net assets of the Successor Agency Trust Fund.743,893 Accrued interest on Advances from the City - decrease in net assets of the Succssor Agency Trust Fund (1,342,899) Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers (equal to amount of extraordinary gain reported in the government-wide financial statements of the City)(59,888,169)$ 72 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and Investments pooled with the City 6,085,910$ b. Capital Assets An analysis of capital assets as of June 30, 2012, follows: Additions Deletions Nondepreciable Assets: Land -$ 410,420$ -$ -$ 410,420$ Depreciable Assets: Land Improvements - 1,427,803 - - 1,427,803 Infrastructure - 718,430 - - 718,430 Total Capital Assets being depreciated - 2,146,233 - - 2,146,233 Less Accumulated Depreciation Land Improvements - 605,403 24,333 - 629,736 Infrastructure - 27,825 9,978 - 37,803 Total Accumulated Depreciation - 633,228 34,311 - 667,539 Total Capital Assets being depreciated, net - 1,513,005 (34,311) - 1,478,694 Capital Assets -$ 1,923,425$ (34,311)$ -$ 1,889,114$ Transferred from former RDA Balance July 1, 2011 Balance June 30, 2012 c. Long-Term Debt The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012, as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2012, follows: 73 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Balance July 1, 2011 Transferred from the former RDA Additions* Repayments Balance June 30, 2012 Due Within One Year Fiduciary Funds: 2003 Refunding TABs -$ 7,880,000$ -$ -$ 7,880,000$ 495,000$ 2005 TABS, Series A - 9,518,015 92,801 - 9,610,816 - 2007 TABs, Series A - 14,280,000 - - 14,280,000 430,000 2007 TABs, Series B - 4,450,000 - - 4,450,000 95,000 2008 TABs, Series A - 6,485,000 - - 6,485,000 85,000 2008 TABs, Series B - 10,975,000 - - 10,975,000 130,000 Total Fiduciary Funds $ - $ 53,588,015 $ 92,801 $ - 53,680,816 $ 1,235,000 Unamortized Discounts (773,349) Total Long-term Debt 52,907,467$ *Addition of $92,801 related to accreted interest. The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $98,480,410, with annual debt service requirements as indicated below. For the current year, the total property tax revenue (net of pass through payments prior to the dissolution of the former RDA) recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $2,226,896, and the debt service obligation on the bonds was $4,158,211. 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, 2012, was $7,880,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest, are as follows: 74 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Principal Interest 2012-2013 495,000$ 323,516$ 2013-2014 515,000 305,519 2014-2015 530,000 286,248 2015-2016 550,000 265,310 2016-2017 575,000 242,810 2018-2022 3,245,000 820,950 2023-2027 1,970,000 101,753 Totals 7,880,000$ 2,346,106$ 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, 2012, was $9,610,816. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 -$ 349,425$ 2013-2014 - 349,425 2014-2015 - 349,425 2015-2016 - 349,425 2016-2017 - 349,425 2018-2022 - 1,747,125 2023-2027 1,692,475 1,747,125 2028-2032 5,023,341 2,621,065 2033-2037 2,895,000 1,275,626 Totals 9,610,816$ 9,138,066$ 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. 75 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2012, was $14,280,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 430,000$ 847,650$ 2013-2014 450,000 822,284 2014-2015 480,000 795,477 2015-2016 505,000 767,084 2016-2017 535,000 737,106 2018-2022 3,190,000 3,160,332 2023-2027 2,290,000 2,266,443 2028-2032 2,925,000 1,594,234 2033-2037 3,475,000 531,514 Totals 14,280,000$ 11,522,124$ Bonds, Series A 2007 Tax Allocation 2007 Tax Allocation Refunding Bonds, Series B The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area Tax Allocation Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds. Current Interest Bonds are subject to annual sinking fund installment payments ranging from $80,000 to $140,000 due beginning August 1, 2008 through August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum. Term Bonds are due beginning August 1, 2022 through August 1, 2036, with installment payments ranging from $150,000 to $305,000, bearing interest rates ranging from 5.25% to 5.30% per annum. Debt service payments on the bonds are payable from pledged tax increment revenues. The outstanding principal balance at June 30, 2012, was $4,450,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest are as follows: 76 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Principal Interest 2012-2013 95,000$ 226,305$ 2013-2014 100,000 221,968 2014-2015 105,000 217,405 2015-2016 110,000 212,513 2016-2017 110,000 207,439 2018-2022 650,000 949,089 2023-2027 830,000 762,425 2028-2032 1,070,000 512,991 2033-2037 1,380,000 190,270 Totals 4,450,000$ 3,500,405$ 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, 2012, was $6,485,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 85,000$ 490,544$ 2013-2014 95,000 485,250 2014-2015 100,000 479,275 2015-2016 110,000 472,575 2016-2017 120,000 464,950 2018-2022 760,000 2,180,019 2023-2027 2,265,000 1,556,825 2028-2032 1,860,000 734,619 2033-2037 1,090,000 201,600 Totals 6,485,000$ 7,065,657$ 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 77 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2012, was $10,975,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2012, including interest are as follows: Principal Interest 2012-2013 130,000$ 685,158$ 2013-2014 135,000 678,364 2014-2015 145,000 670,833 2015-2016 155,000 662,389 2016-2017 160,000 653,133 2018-2022 980,000 3,092,834 2023-2027 1,930,000 2,664,575 2028-2032 3,435,000 1,689,275 2033-2037 3,835,000 430,675 2035-2040 70,000 - Totals 10,975,000$ 11,227,236$ Bonds, Series B 2008 Tax Allocation On June 14, 2012, Moody’s Investors Service (“Moody’s”) downgraded all California tax allocation bonds rated ‘Baa3’ and above. As such, the Bonds’ insured rating was downgraded from ‘A3’ to ‘Ba1’ and underlying rating was downgraded from ‘A3’ to ‘Ba1’. According to Moody’s, all California tax allocation bond ratings remain on review for possible withdrawal. d. Insurance. The Successor Agency is covered under the City of Azusa’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 10. e. Advances due to the City The Successor Agency received advances from the Water and Light Funds for various project expenditures and SERAF loans. These have currently been denied by the Department of Finance as an enforceable obligation. Advances due to the City are dependent on the Successor Agency receiving a notice of completion by the Department of Finance. Once this is received the Successor Agency can re-submit the Advance 78 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 19: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) obligation for approval as an enforceable obligation. Repayment will be determined at that time. f. Subsequent Events Assembly Bill 1484 established a requirement for the successor agency to remit to the County auditor-controller three payments as determined by the auditor-controller which consist of a payment to be made in July 2012 for taxing entities’ share of December 2011 property tax distribution to redevelopment agency/successor agency, a payment to be made in November 2012 related to Low-Moderate Income Housing Fund Due Diligence Review for unencumbered cash, and a payment to be made in April 2013 related to the other Redevelopment Funds Due Diligence Review for unencumbered cash. As of the date of the report the payment in July 2012 was made in the amount of $250,531. In addition, the Low-Moderate Income Housing Due Diligence Review resulted in an adjusted amount due of $128,924 after the meet and confer process, and the other Redevelopment Funds Due Diligence Review resulted in an amount due of $0, which have been confirmed by the Department of Finance. 79 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments 1,081,119$ -$ 1,430,152$ -$ Receivables: Accounts - 58,818 - 315,031 Taxes 137,843 - - - Notes and loans 2,700 361 - 349,718 Accrued interest 425 - 594 - Prepaid costs - - - 1,366 Due from other governments - - - - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agents - - - - Total Assets 1,222,087$ 59,179$ 1,430,746$ 666,115$ Liabilities and Fund Balances: Liabilities: Accounts payable 26,885$ 19,412$ 11,816$ 66,985$ Accrued liabilities 19,698 19,098 760 687 Deferred revenues 42,397 - - 349,718 Unearned revenues - - - - Due to other funds - 192,859 - 258,998 Advances from other funds - - - - Total Liabilities 88,980 231,369 12,576 676,388 Fund Balances: Nonspendable: Prepaid costs - - - 1,366 Notes and loans 2,700 361 - - Restricted for: Community development projects 1,130,407 - 1,418,170 - Public safety - - - - Capital Projects - - - - Debt service - - - - Unassigned - (172,551) - (11,639) Total Fund Balances 1,133,107 (172,190) 1,418,170 (10,273) Total Liabilities and Fund Balances 1,222,087$ 59,179$ 1,430,746$ 666,115$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 80 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Deferred revenues Unearned revenues Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances -$ 720,659$ 187,257$ 1,147,903$ 8,129 40,662 14,367 314,261 - - - - 1,277 - - - - 3,093 754 - - - - 1,684 - - - 76,982 - - - - - - - - 9,406$ 764,414$ 202,378$ 1,540,830$ 565$ 14,770$ 433$ 42,389$ 5,295 4,304 5 237 - - - 43,145 - - - 195,693 3,546 - - - - - - - 9,406 19,074 438 281,464 - - - 1,684 1,277 - - - - 745,340 - - - - - 1,257,682 - - 201,940 - - - - - (1,277) - - - - 745,340 201,940 1,259,366 9,406$ 764,414$ 202,378$ 1,540,830$ Special Revenue Funds Senior Nutrition Public Benefit Program Air Quality Improvement Grants and Seizure 81 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Deferred revenues Unearned revenues Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 41,890$ 280,155$ 726,056$ -$ - - 713 - - - 112,918 - - - - - - - 358 - - - - - - - - - - - - - - - - - 41,890$ 280,155$ 840,045$ -$ 2,297$ 280,155$ 31,480$ -$ - - 3,811 - - - - - - - - - - - - - - - - - 2,297 280,155 35,291 - - - - - - - - - - - - - 39,593 - - - - - 804,754 - - - - - - - - - 39,593 - 804,754 - 41,890$ 280,155$ 840,045$ -$ Supplemental Law Enforcement Fire Safety Monrovia Nursery Employee Benefits Special Revenue Funds 82 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Deferred revenues Unearned revenues Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 741,016$ 1,495,796$ 190,092$ 983,538$ - - - - - - - - - - - - - 624 79 415 - - - - - - - - - - - - - - - - 741,016$ 1,496,420$ 190,171$ 983,953$ -$ -$ 131,320$ 57,637$ - - - 5,047 - - - - - - - - - - - - - - - - - - 131,320 62,684 - - - - - - - - - 1,496,420 - - - - - - 741,016 - 58,851 921,269 - - - - - - - - 741,016 1,496,420 58,851 921,269 741,016$ 1,496,420$ 190,171$ 983,953$ Utility Mitigation Highway 39 LACMTA Measure R Special Revenue Funds 83 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Deferred revenues Unearned revenues Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 314,172$ 547,539$ 3,182$ 717,152$ 7,268 - - - - - - - 650 - - - - 232 1 - - - - - - - - - - - - 30,848 - - - - 322,090$ 547,771$ 3,183$ 748,000$ 17,637$ 55,648$ -$ -$ 1,383 - - - - - - - - - - - - - - - - - - 750,000 19,020 55,648 - 750,000 - - - - 650 - - - - - - - - - - - 302,420 492,123 3,183 - - - - - - - - (2,000) 303,070 492,123 3,183 (2,000) 322,090$ 547,771$ 3,183$ 748,000$ AB939 Fee Rosedale Traffic Mitigation Park in-lieu Capital Projects Special Revenue Funds Capital Projects Funds 84 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Deferred revenues Unearned revenues Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Debt Service Funds Total Governmental Funds 969,943$ -$ -$ 11,577,621$ - - - 759,249 - - - 250,761 - - - 354,706 405 - - 6,980 - - - 3,050 - - - 76,982 - - - 30,848 - - 482,558 482,558 970,348$ -$ 482,558$ 13,542,755$ 4,000$ -$ -$ 763,429$ - - - 60,325 - - - 435,260 - - - 195,693 - - - 455,403 - - - 750,000 4,000 - - 2,660,110 - - - 3,050 - - - 4,988 966,348 - - 5,756,685 - - - 1,297,275 - - - 3,525,556 - - 482,558 482,558 - - - (187,467) 966,348 - 482,558 10,882,645 970,348$ -$ 482,558$ 13,542,755$ Public Works Endowment Public Financing Authority Capital Projects Funds Capital Projects RDA 85 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Revenues: Taxes -$ 719,060$ 596,616$ -$ Intergovernmental 1,362,736 193,455 - 595,793 Charges for services - 20,914 91,564 - Use of money and property 10,572 10,059 14,303 - Contributions - - - - Miscellaneous 112 - - - Total Revenues 1,373,420 943,488 702,483 595,793 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - 386,650 Parks and recreation 58,924 - - - Public works 1,310,074 2,438,400 532,572 - Capital outlay 46,582 128,613 29,672 204,818 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,415,580 2,567,013 562,244 591,468 Excess (Deficiency) of Revenues Over (Under) Expenditures (42,160) (1,623,525) 140,239 4,325 Other Financing Sources (Uses): Transfers in - - - - Transfers out (3,661) (202) - - Total Other Financing Sources (Uses)(3,661) (202) - - Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 19)- - - - Net Change in Fund Balances (45,821) (1,623,727) 140,239 4,325 Fund Balances, Beginning of Year 1,178,928 1,451,537 1,277,931 (14,598) Restatements - - - - Fund Balances, Beginning of Year, as Restated 1,178,928 1,451,537 1,277,931 (14,598) Fund Balances, End of Year 1,133,107$ (172,190)$ 1,418,170$ (10,273)$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 86 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 18) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year -$ -$ -$ -$ 129,087 - 58,204 761,130 - 627,493 17,643 74,806 - 9,737 1,717 9,226 82,662 - - 6,905 - - - 7,040 211,749 637,230 77,564 859,107 - 211,688 - 123,443 - - - 124,326 - 938,694 - - 336,446 - - 17,147 - - 40,547 84,235 - 8,077 - 510,022 - - - - - - - - 336,446 1,158,459 40,547 859,173 (124,697) (521,229) 37,017 (66) 124,697 - - - - (204) - - 124,697 (204) - - - - - - - (521,433) 37,017 (66) - 1,266,773 164,923 1,259,432 - - - - - 1,266,773 164,923 1,259,432 -$ 745,340$ 201,940$ 1,259,366$ Senior Nutrition Public Benefit Program Air Quality Improvement Grants and Seizure Special Revenue Funds 87 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 18) 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 - 151,000 - - 129,265 361,384 - 1,542 - 7,558 - - - - - - - 106,800 - 101,542 129,265 626,742 - - - - 24,200 78,900 3,912,092 - - - - - - - - - - - - 224,714 - 86,799 - 140,804 - - - - - - - - - 165,699 3,912,092 365,518 24,200 (64,157) (3,782,827) 261,224 (24,200) - 3,782,827 - 24,200 - - (150,285) - - 3,782,827 (150,285) 24,200 - - - - (64,157) - 110,939 - 103,750 - 693,815 - - - - - 103,750 - 693,815 - 39,593$ -$ 804,754$ -$ Fire Safety Monrovia Nursery Employee Benefits Supplemental Law Enforcement Special Revenue Funds 88 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 18) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year -$ -$ -$ 444,437$ - - - - - - - - - 14,068 4,868 9,317 - - - - - 185,000 - - - 199,068 4,868 453,754 - - - - - - - - - - - - - - - - - - 737,836 293,491 - - 131,320 - - - - - - - - - - - 869,156 293,491 - 199,068 (864,288) 160,263 28,037 - - 31,300 - - - (18) 28,037 - - 31,282 - - - - 28,037 199,068 (864,288) 191,545 712,979 1,297,352 923,139 729,724 - - - - 712,979 1,297,352 923,139 729,724 741,016$ 1,496,420$ 58,851$ 921,269$ LACMTA Measure R Utility Mitigation Highway 39 Special Revenue Funds 89 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 18) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year -$ -$ -$ -$ - - 2,100 - 194,426 - - - - 9,302 18 - - - - - - - - - 194,426 9,302 2,118 - - - - - - - - - - - - - - - - - 225,503 556,482 - - - - 2,180 - - - - - - - - - 225,503 556,482 2,180 - (31,077) (547,180) (62) - - - - - (64) - - - (64) - - - - - - - (31,141) (547,180) (62) - 334,211 1,039,303 3,245 (2,000) - - - - 334,211 1,039,303 3,245 (2,000) 303,070$ 492,123$ 3,183$ (2,000)$ Capital Projects Funds Park in-lieu Capital Projects AB939 Fee Rosedale Traffic Mitigation Special Revenue Funds 90 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 18) 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 -$ -$ -$ 1,760,113$ - - - 3,353,505 - - - 1,517,495 10,376 17,539 102 130,304 - - - 89,567 - 20,882 - 319,834 10,376 38,421 102 7,170,818 - 696,905 2,000 1,058,236 - - - 4,115,318 - 214,994 - 1,540,338 - - - 412,517 - - - 6,443,854 84,535 28,053 - 1,401,475 - - 230,000 230,000 - 18,453 127,588 146,041 84,535 958,405 359,588 15,347,779 (74,159) (919,984) (359,486) (8,176,961) - - 359,496 4,350,557 - - - (154,434) - - 359,496 4,196,123 - (8,518,112) - (8,518,112) (74,159) (9,438,096) 10 (12,498,950) 1,040,507 9,426,436 482,548 23,369,935 - 11,660 - 11,660 1,040,507 9,438,096 482,548 23,381,595 966,348$ -$ 482,558$ 10,882,645$ Capital Projects Funds Capital Projects RDA Public Financing Authority Public Works Endowment 91 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE STATE GASOLINE TAX YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,178,928$ 1,178,928$ 1,178,928$ -$ Resources (Inflows): Intergovernmental 1,354,095 1,396,492 1,362,736 (33,756) Use of money and property 20,000 20,000 10,572 (9,428) Miscellaneous - - 112 112 Amounts Available for Appropriation 2,553,023 2,595,420 2,552,348 (43,072) Charges to Appropriation (Outflow): Parks and recreation 59,000 59,000 58,924 76 Public works 1,294,145 1,339,945 1,310,074 29,871 Capital outlay - 904,021 46,582 857,439 Transfers out - - 3,661 (3,661) Total Charges to Appropriations 1,353,145 2,302,966 1,419,241 883,725 Budgetary Fund Balance, June 30 1,199,878$ 292,454$ 1,133,107$ 840,653$ 92 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION A YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,451,537$ 1,451,537$ 1,451,537$ -$ Resources (Inflows): Taxes 677,285 707,285 719,060 11,775 Intergovernmental 103,000 103,000 193,455 90,455 Charges for services 22,910 22,910 20,914 (1,996) Use of money and property 35,000 35,000 10,059 (24,941) Transfers in 575,360 575,360 - (575,360) Amounts Available for Appropriation 2,865,092 2,895,092 2,395,025 (500,067) Charges to Appropriation (Outflow): Public works 1,267,955 2,797,955 2,438,400 359,555 Capital outlay to 1,582,310 133,034 128,613 4,421 Transfers out - - 202 (202) Total Charges to Appropriations 2,850,265 2,930,989 2,567,215 363,774 Budgetary Fund Balance, June 30 14,827$ (35,897)$ (172,190)$ (136,293)$ 93 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION C YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,277,931$ 1,277,931$ 1,277,931$ -$ Resources (Inflows): Taxes 561,790 1,026,046 596,616 (429,430) Intergovernmental 406,000 406,000 - (406,000) Charges for services 113,000 113,000 91,564 (21,436) Use of money and property 3,000 3,000 14,303 11,303 Amounts Available for Appropriation 2,361,721 2,825,977 1,980,414 (845,563) Charges to Appropriation (Outflow): Public works 278,280 568,280 532,572 35,708 Capital outlay - 232,706 29,672 203,034 Transfers out 575,360 575,360 - 575,360 Total Charges to Appropriations 853,640 1,376,346 562,244 814,102 Budgetary Fund Balance, June 30 1,508,081$ 1,449,631$ 1,418,170$ (31,461)$ 94 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (14,598)$ (14,598)$ (14,598)$ -$ Resources (Inflows): Intergovernmental 650,980 554,592 595,793 41,201 Miscellaneous 111,450 111,450 - (111,450) Amounts Available for Appropriation 747,832 651,444 581,195 (70,249) Charges to Appropriation (Outflow): Community development 490,365 395,947 386,650 9,297 Capital outlay - 375,588 204,818 170,770 Total Charges to Appropriations 490,365 771,535 591,468 180,067 Budgetary Fund Balance, June 30 257,467$ (120,091)$ (10,273)$ 109,818$ 95 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SENIOR NUTRITION YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 112,775 112,775 129,087 16,312 Contributions 74,000 74,000 82,662 8,662 Transfers in 137,805 141,895 124,697 (17,198) Amounts Available for Appropriation 324,580 328,670 336,446 7,776 Charges to Appropriation (Outflow): Parks and recreation 324,580 328,670 336,446 (7,776) Total Charges to Appropriations 324,580 328,670 336,446 (7,776) Budgetary Fund Balance, June 30 -$ -$ -$ -$ 96 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC BENEFIT PROGRAM YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,266,773$ 1,266,773$ 1,266,773$ -$ Resources (Inflows): Charges for services 901,000 901,000 627,493 (273,507) Use of money and property 50,000 50,000 9,737 (40,263) Amounts Available for Appropriation 2,217,773 2,217,773 1,904,003 (313,770) Charges to Appropriation (Outflow): General government 238,750 232,750 211,688 21,062 Community development 980,000 986,000 938,694 47,306 Capital outlay 15,000 37,000 8,077 28,923 Transfers out - - 204 (204) Total Charges to Appropriations 1,233,750 1,255,750 1,158,663 97,087 Budgetary Fund Balance, June 30 984,023$ 962,023$ 745,340$ (216,683)$ 97 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 164,923$ 164,923$ 164,923$ -$ Resources (Inflows): Intergovernmental 55,405 55,405 58,204 2,799 Charges for services 25,000 25,000 17,643 (7,357) Use of money and property 5,000 5,000 1,717 (3,283) Amounts Available for Appropriation 250,328 250,328 242,487 (7,841) Charges to Appropriation (Outflow): Public works 48,705 48,705 40,547 8,158 Capital outlay 82,315 31,591 - 31,591 Total Charges to Appropriations 131,020 80,296 40,547 39,749 Budgetary Fund Balance, June 30 119,308$ 170,032$ 201,940$ 31,908$ 98 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE GRANTS AND SEIZURE YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,259,432$ 1,259,432$ 1,259,432$ -$ Resources (Inflows): Intergovernmental 10,572,060 10,990,948 761,130 (10,229,818) Charges for services - - 74,806 74,806 Use of money and property 3,100 3,138 9,226 6,088 Contributions 7,150 9,150 6,905 (2,245) Miscellaneous 6,800 6,800 7,040 240 Transfers in 26,555 26,555 - (26,555) Amounts Available for Appropriation 11,875,097 12,296,023 2,118,539 (10,177,484) Charges to Appropriation (Outflow): General government 165,620 130,529 123,443 7,086 Public safety 243,575 297,015 124,326 172,689 Parks and recreation 71,550 76,757 17,147 59,610 Public works 150,300 152,750 84,235 68,515 Capital outlay 119,525 483,593 510,022 (26,429) Transfers out 26,555 26,555 - 26,555 Total Charges to Appropriations 777,125 1,167,199 859,173 308,026 Budgetary Fund Balance, June 30 11,097,972$ 11,128,824$ 1,259,366$ (9,869,458)$ 99 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SUPPLEMENTAL LAW ENFORCEMENT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 103,750$ 103,750$ 103,750$ -$ Resources (Inflows): Intergovernmental 100,000 100,000 100,000 - Use of money and property - - 1,542 1,542 Amounts Available for Appropriation 203,750 203,750 205,292 1,542 Charges to Appropriation (Outflow): Public safety 77,700 97,500 78,900 18,600 Capital outlay to 128,440 106,250 86,799 19,451 Total Charges to Appropriations 206,140 203,750 165,699 38,051 Budgetary Fund Balance, June 30 (2,390)$ -$ 39,593$ 39,593$ 100 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE FIRE SAFETY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Charges for services 40,000 129,265 129,265 - Transfers in 3,619,595 3,619,595 3,782,827 163,232 Amounts Available for Appropriation 3,659,595 3,748,860 3,912,092 163,232 Charges to Appropriation (Outflow): Public safety 3,659,595 3,803,860 3,912,092 (108,232) Total Charges to Appropriations 3,659,595 3,803,860 3,912,092 (108,232) Budgetary Fund Balance, June 30 -$ (55,000)$ -$ 55,000$ 101 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MONROVIA NURSERY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 693,815$ 693,815$ 693,815$ -$ Resources (Inflows): Intergovernmental - - 151,000 151,000 Charges for services 365,000 365,000 361,384 (3,616) Use of money and property 30,000 30,000 7,558 (22,442) Miscellaneous - - 106,800 106,800 Amounts Available for Appropriation 1,088,815 1,088,815 1,320,557 231,742 Charges to Appropriation (Outflow): Public works 210,015 266,270 224,714 41,556 Capital outlay - 94,831 140,804 (45,973) Transfers out 150,285 150,285 150,285 - Total Charges to Appropriations 360,300 511,386 515,803 (4,417) Budgetary Fund Balance, June 30 728,515$ 577,429$ 804,754$ 227,325$ 102 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFITS YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Transfers in 23,630 23,630 24,200 570 Amounts Available for Appropriation 23,630 23,630 24,200 570 Charges to Appropriation (Outflow): General government 23,630 23,630 24,200 (570) Total Charges to Appropriations 23,630 23,630 24,200 (570) Budgetary Fund Balance, June 30 -$ -$ -$ -$ 103 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE UTILITY MITIGATION YEAR ENDED JUNE 30, 2012 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 200,000 200,000 28,037 (171,963) Amounts Available for Appropriation 912,979 912,979 741,016 (171,963) Budgetary Fund Balance, June 30 912,979$ 912,979$ 741,016$ (171,963)$ 104 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE LACMTA YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 923,139$ 923,139$ 923,139$ -$ Resources (Inflows): Intergovernmental 20,000 20,000 - (20,000) Use of money and property 6,000 6,000 4,868 (1,132) Amounts Available for Appropriation 949,139 949,139 928,007 (21,132) Charges to Appropriation (Outflow): Public works - 737,837 737,836 1 Capital outlay - 363,478 131,320 232,158 Total Charges to Appropriations - 1,101,315 869,156 232,159 Budgetary Fund Balance, June 30 949,139$ (152,176)$ 58,851$ 211,027$ 105 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MEASURE R YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 729,724$ 729,724$ 729,724$ -$ Resources (Inflows): Taxes 421,350 421,350 444,437 23,087 Use of money and property - - 9,317 9,317 Transfers in - - 31,300 31,300 Amounts Available for Appropriation 1,151,074 1,151,074 1,214,778 63,704 Charges to Appropriation (Outflow): Public works 12,000 408,608 293,491 115,117 Transfers out - - 18 (18) Total Charges to Appropriations 12,000 408,608 293,509 115,099 Budgetary Fund Balance, June 30 1,139,074$ 742,466$ 921,269$ 178,803$ 106 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AB939 FEE YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 334,211$ 334,211$ 334,211$ -$ Resources (Inflows): Charges for services 197,200 197,200 194,426 (2,774) Use of money and property 3,000 3,000 - (3,000) Amounts Available for Appropriation 534,411 534,411 528,637 (5,774) Charges to Appropriation (Outflow): Public works 290,015 290,015 225,503 64,512 Transfers out - - 64 (64) Total Charges to Appropriations 290,015 290,015 225,567 64,448 Budgetary Fund Balance, June 30 244,396$ 244,396$ 303,070$ 58,674$ 107 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE ROSEDALE TRAFFIC MITIGATION YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,039,303$ 1,039,303$ 1,039,303$ -$ Resources (Inflows): Use of money and property - - 9,302 9,302 Amounts Available for Appropriation 1,039,303 1,039,303 1,048,605 9,302 Charges to Appropriation (Outflow): Public works - 556,482 556,482 - Total Charges to Appropriations - 556,482 556,482 - Budgetary Fund Balance, June 30 1,039,303$ 482,821$ 492,123$ 9,302$ 108 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PARK IN-LIEU YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,245$ 3,245$ 3,245$ -$ Resources (Inflows): Intergovernmental 5,000 5,000 2,100 (2,900) Use of money and property 50 50 18 (32) Amounts Available for Appropriation 8,295 8,295 5,363 (2,932) Charges to Appropriation (Outflow): Capital outlay 2,180 2,180 2,180 - Total Charges to Appropriations 2,180 2,180 2,180 - Budgetary Fund Balance, June 30 6,115$ 6,115$ 3,183$ (2,932)$ 109 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC WORKS ENDOWMENT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,040,507$ 1,040,507$ 1,040,507$ -$ Resources (Inflows): Use of money and property - - 10,376 10,376 Amounts Available for Appropriation 1,040,507 1,040,507 1,050,883 10,376 Charges to Appropriation (Outflow): Capital outlay 27,530 329,855 84,535 245,320 Total Charges to Appropriations 27,530 329,855 84,535 245,320 Budgetary Fund Balance, June 30 1,012,977$ 710,652$ 966,348$ 255,696$ 110 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 482,548$ 482,548$ 482,548$ -$ Resources (Inflows): Use of money and property 100 100 102 2 Miscellaneous - - - - Transfers in 362,090 362,090 359,496 (2,594) Amounts Available for Appropriation 844,738 844,738 842,146 (2,592) Charges to Appropriation (Outflow): General government 4,500 4,500 2,000 2,500 Debt service: Principal retirement 230,000 230,000 230,000 - Interest and fiscal charges 127,590 127,590 127,588 2 Total Charges to Appropriations 362,090 362,090 359,588 2,502 Budgetary Fund Balance, June 30 482,648$ 482,648$ 482,558$ (90)$ 111 CITY OF AZUSA COMBINING STATEMENT OF NET ASSETS NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2012 Totals Assets: Current: Cash and investments 2,464,327$ 153,523$ 2,617,850$ Receivables: Accounts 256,470 410,162 666,632 Notes and loans 276 - 276 Accrued interest 1,005 - 1,005 Restricted: Cash with fiscal agent 4,100,129 - 4,100,129 Total Current Assets 6,822,207 563,685 7,385,892 Noncurrent: Deferred Charges 68,492 - 68,492 Capital assets - net of accumulated depreciation 8,809,361 - 8,809,361 Total Noncurrent Assets 8,877,853 - 8,877,853 Total Assets 15,700,060$ 563,685$ 16,263,745$ Liabilities and Net Assets: Liabilities: Current: Accounts payable 47,572$ 465,280$ 512,852$ Accrued liabilities 24,663 - 24,663 Accrued compensated absences 78,471 - 78,471 Bonds, notes, and capital leases 225,000 - 225,000 Total Current Liabilities 375,706 465,280 840,986 Noncurrent: Accrued compensated absences 13,573 - 13,573 Bonds, notes, and capital leases 5,405,000 - 5,405,000 Total Noncurrent Liabilities 5,418,573 - 5,418,573 Total Liabilities 5,794,279 465,280 6,259,559 Net Assets: Invested in capital assets, net of related debt 7,279,490 - 7,279,490 Unrestricted 2,626,291 98,405 2,724,696 Total Net Assets 9,905,781 98,405 10,004,186 Total Liabilities and Net Assets 15,700,060$ 563,685$ 16,263,745$ Business-Type Activities - Enterprise Funds Sewer/Waste water Refuse Contract 112 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Totals Operating Revenues: Sales and service charges 2,223,876$ 2,976,946$ 5,200,822$ Miscellaneous 1,459 4,279 5,738 Total Operating Revenues 2,225,335 2,981,225 5,206,560 Operating Expenses: Treatment 1,451,016 - 1,451,016 Refuse collection - 2,851,882 2,851,882 Cost of sales and services 79,775 - 79,775 Depreciation expense 358,080 - 358,080 Total Operating Expenses 1,888,871 2,851,882 4,740,753 Operating Income (Loss)336,464 129,343 465,807 Nonoperating Revenues (Expenses): Taxes - 555,225 555,225 Interest revenue 36,649 - 36,649 Interest expense (149,991) - (149,991) Special franchise fees (44,894) - (44,894) Gain (loss) on disposal of capital assets (1,350) - (1,350) Total Nonoperating Revenues (Expenses)(159,586) 555,225 395,639 Income (Loss) Before Transfers 176,878 684,568 861,446 Transfers out (154,140) (602,190) (756,330) Changes in Net Assets 22,738 82,378 105,116 Net Assets: Beginning of Year 9,883,043 16,027 9,899,070 End of Fiscal Year 9,905,781$ 98,405$ 10,004,186$ Business-Type Activities - Enterprise Funds Sewer/Waste water Refuse Contract 113 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Totals Cash Flows from Operating Activities: Cash received from customers and users 2,159,484$ 2,962,100$ 5,121,584$ Cash paid to suppliers for goods and services (1,555,921) (2,868,714) (4,424,635) Cash paid to employees for services (15,108) - (15,108) Net Cash Provided (Used) by Operating Activities 588,455 93,386 681,841 Cash Flows from Non-Capital Financing Activities: Cash transfers out (154,140) (602,190) (756,330) Net Cash Provided (Used) by Non-Capital Financing Activities (154,140) (602,190) (756,330) Cash Flows from Capital and Related Financing Activities: Proceeds from capital debt 5,630,000 - 5,630,000 Acquisition and construction of capital assets (30,700) - (30,700) Principal paid on capital debt (1,758,104) - (1,758,104) Interest paid on capital debt (181,687) - (181,687) Special franchise fees (44,894) - (44,894) Taxes - 555,225 555,225 Net Cash Provided (Used) by Capital and Related Financing Activities 3,614,615 555,225 4,169,840 Cash Flows from Investing Activities: Repayment of loans (276) - (276) Interest received 37,469 - 37,469 Net Cash Provided (Used) by Investing Activities 37,193 - 37,193 Net Increase (Decrease) in Cash and Cash Equivalents 4,086,123 46,421 4,132,544 Cash and Cash Equivalents at Beginning of Year 2,478,333 107,102 2,585,435 Cash and Cash Equivalents at End of Year 6,564,456$ 153,523$ 6,717,979$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)336,464$ 129,343$ 465,807$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 358,080 - 358,080 (Increase) decrease in accounts receivable (65,851) (19,125) (84,976) Increase (decrease) in accounts payable (25,130) (16,832) (41,962) Increase (decrease) in accrued liabilities (9,200) - (9,200) Increase (decrease) in compensated absences (5,908) - (5,908) Total Adjustments 251,991 (35,957) 216,034 Net Cash Provided (Used) by Operating Activities 588,455$ 93,386$ 681,841$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets (1,350)- (1,350) Amortization of bond discount (51,896)- (51,896) Amortization of cost of issuance (11,283)- (11,283) Business-Type Activities - Enterprise Funds Sewer/Waste water Refuse Contract 114 THIS PAGE INTENTIONALLY LEFT BLANK 115 CITY OF AZUSA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 Assets: Current: Cash and investments 1,239,850$ 2,422,549$ -$ 172,879$ Receivables: Accounts 3,514 - - - Notes and loans 1,525 3,310 - - Accrued interest 13,419 785 - 72 Prepaid costs 185 - - - Due from other governments - 48,279 - - Total Current Assets 1,258,493 2,474,923 - 172,951 Noncurrent: Advances to Successor Agency - - - - Capital assets - net of accumulated depreciation 836,577 - 41,027 582,842 Total Noncurrent Assets 836,577 - 41,027 582,842 Total Assets 2,095,070$ 2,474,923$ 41,027$ 755,793$ Liabilities and Net Assets: Liabilities: Current: Accounts payable 204,296$ 326,137$ 4,553$ -$ Accrued liabilities 83,997 25,546 710 - Deposits payable 1,423 - - - Due to other funds - - 41,841 - Accrued compensated absences 183,171 1,054 - - Accrued claims and judgments - 520,070 - - Total Current Liabilities 472,887 872,807 47,104 - Noncurrent: Accrued compensated absences 61,057 574 - - Accrued claims and judgments - 1,203,521 - - Total Noncurrent Liabilities 61,057 1,204,095 - - Total Liabilities 533,944 2,076,902 47,104 - Net Assets: Invested in capital assets, net of related debt 836,577 - 41,027 582,842 Unrestricted 724,549 398,021 (47,104) 172,951 Total Net Assets 1,561,126 398,021 (6,077) 755,793 Total Liabilities and Net Assets 2,095,070$ 2,474,923$ 41,027$ 755,793$ Consumer Services Self Insurance Central Services Equipment Replacement 116 CITY OF AZUSA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 Totals Assets: Current: Cash and investments -$ 296,967$ 4,132,245$ Receivables: Accounts - 403 3,917 Notes and loans - 3,578 8,413 Accrued interest - - 14,276 Prepaid costs - 17,609 17,794 Due from other governments - - 48,279 Total Current Assets - 318,557 4,224,924 Noncurrent: Advances to Successor Agency 22,154,005 - 22,154,005 Capital assets - net of accumulated depreciation - - 1,460,446 Total Noncurrent Assets 22,154,005 - 23,614,451 Total Assets 22,154,005$ 318,557$ 27,839,375$ Liabilities and Net Assets: Liabilities: Current: Accounts payable -$ 50,920$ 585,906$ Accrued liabilities - 39,769 150,022 Deposits payable - - 1,423 Due to other funds - - 41,841 Accrued compensated absences - 149,172 333,397 Accrued claims and judgments - - 520,070 Total Current Liabilities - 239,861 1,632,659 Noncurrent: Accrued compensated absences - 81,200 142,831 Accrued claims and judgments - - 1,203,521 Total Noncurrent Liabilities - 81,200 1,346,352 Total Liabilities - 321,061 2,979,011 Net Assets: Invested in capital assets, net of related debt - - 1,460,446 Unrestricted 22,154,005 (2,504) 23,399,918 Total Net Assets 22,154,005 (2,504) 24,860,364 Total Liabilities and Net Assets 22,154,005$ 318,557$ 27,839,375$ Intra- Governmental Loan Fund IT Services 117 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Operating Revenues: Sales and service charges 6,413,023$ 2,060,468$ 157,928$ -$ Miscellaneous -26,234 -8,713 Total Operating Revenues 6,413,023 2,086,702 157,928 8,713 Operating Expenses: Administration and general 5,251,054 1,628,891 130,610 115,910 Source of supply 143,611 -28,487 - Claims expense 394,085 478,782 -- Depreciation expense 147,257 -4,908 138,996 Total Operating Expenses 5,936,007 2,107,673 164,005 254,906 Operating Income (Loss)477,016 (20,971)(6,077) (246,193) Nonoperating Revenues (Expenses): Interest revenue -16,396 -1,867 Gain (loss) on disposal of capital assets - - - (50,068) Total Nonoperating Revenues (Expenses)-16,396 -(48,201) Income (Loss) Before Transfers 477,016 (4,575)(6,077) (294,394) Transfers out (279,974)--- Changes in Net Assets 197,042 (4,575)(6,077) (294,394) Net Assets: Beginning of Year 1,364,084 402,596 - 1,050,187 End of Fiscal Year 1,561,126$ 398,021$ (6,077)$ 755,793$ Consumer Services Self Insurance Central Services Equipment Replacement 118 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 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 out Changes in Net Assets Net Assets: Beginning of Year End of Fiscal Year Totals 515,615$ 2,004,326$ 11,151,360$ -219 35,166 515,615 2,004,545 11,186,526 - 1,787,893 8,914,358 -219,156 391,254 --872,867 --291,161 - 2,007,049 10,469,640 515,615 (2,504)716,886 1,291,989 -1,310,252 --(50,068) 1,291,989 -1,260,184 1,807,604 (2,504)1,977,070 --(279,974) 1,807,604 (2,504)1,697,096 20,346,401 -23,163,268 22,154,005$ (2,504)$ 24,860,364$ Intra- Governmental Loan Fund IT Services 119 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Cash Flows from Operating Activities: Cash received from customers and users 6,409,509$ 2,133,955$ 157,928$ 8,713$ Cash paid to suppliers for goods and services (502,868) (655,843) (26,143) - Cash paid to employees for services (5,258,633) (1,636,032) (145,034) (115,910) Net Cash Provided (Used) by Operating Activities 648,008 (157,920) (13,249) (107,197) Cash Flows from Non-Capital Financing Activities: Cash transfers out (279,974) - - - Cash due to other funds 670,413 2,566,974 - - Advance to successor agency - - - - Repayments received from other funds - - 13,249 - Net Cash Provided (Used) by Non-Capital Financing Activities 390,439 2,566,974 13,249 - Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (219,374) - - (12,717) Net Cash Provided (Used) by Capital and Related Financing Activities (219,374) - - (12,717) Cash Flows from Investing Activities: Issuance of new loans 4,072 - - - Repayment of loans - (3,310) - - Interest received 9,663 16,805 - 2,023 Net Cash Provided (Used) by Investing Activities 13,735 13,495 - 2,023 Net Increase (Decrease) in Cash and Cash Equivalents 832,808 2,422,549 - (117,891) Cash and Cash Equivalents at Beginning of Year 407,042 - - 290,770 Cash and Cash Equivalents at End of Year 1,239,850$ 2,422,549$ -$ 172,879$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)477,016$ (20,971)$ (6,077)$ (246,193)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 147,257 - 4,908 138,996 (Increase) decrease in accounts receivable (3,514) 47,253 - - (Increase) decrease in due from other governments - - - - (Increase) decrease in prepaid expense 8,808 1,455 - - Increase (decrease) in accounts payable 26,020 (21,341) 2,344 - Increase (decrease) in accrued liabilities 5,041 673 (2,287) - Increase (decrease) in claims and judgments - (157,175) - - Increase (decrease) in compensated absences (12,620) (7,814) (12,137) - Total Adjustments 170,992 (136,949) (7,172) 138,996 Net Cash Provided (Used) by Operating Activities 648,008$ (157,920)$ (13,249)$ (107,197)$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets -$ -$ -$ -$ Consumer Services Self Insurance Central Services Equipment Replacement 120 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 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 due to other funds Advance to successor agency Repayments received from other funds Net Cash Provided (Used) by Non-Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Issuance of new loans 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 due from other governments (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 -$ 2,004,142$ 10,714,247$ 515,615 (157,582) (826,821) - (1,769,412) (8,925,021) 515,615 77,148 962,405 - - (279,974) - - 3,237,387 (1,807,604) - (1,807,604) - - 13,249 (1,807,604) - 1,163,058 - - (232,091) - - (232,091) - 6,104 10,176 - - (3,310) 1,291,989 - 1,320,480 1,291,989 6,104 1,327,346 - 83,252 3,220,718 - 213,715 911,527 -$ 296,967$ 4,132,245$ 515,615$ (2,504)$ 716,886$ - - 291,161 - (403) 43,336 - - - - 51,579 61,842 - 9,995 17,018 - 1,599 5,026 - - (157,175) - 16,882 (15,689) - 79,652 245,519 515,615$ 77,148$ 962,405$ -$ -$ -$ Intra- Governmental Loan Fund IT Services 121 CITY OF AZUSA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2012 Balance Balance 7/1/2011 Additions Deductions 6/30/2012 Deposit Trust Assets: Pooled cash and investments 1,739,763$ 7,213,806$ 4,026,036$ 4,927,533$ Receivables: Accounts 1,700 609 1,700 609 Taxes 34,387 975,408 34,607 975,188 Total Assets 1,775,850$ 8,189,823$ 4,062,343$ 5,903,330$ Liabilities: Accounts payable 1,743,367$ 6,695,651$ 2,572,317$ 5,866,701$ Accrued liabilities 4,823 609 554 4,878 Deposits payable 21,415 13,209 11,918 22,706 Due to other governments 6,245 5,500 2,700 9,045 Total Liabilities 1,775,850$ 6,714,969$ 2,587,489$ 5,903,330$ 122 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS WATER - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Water Operating Revenues: Residential sales 9,883,807$ Commercial sales 3,553,448 Industrial sales 2,555,016 Fees 37,872 Other revenue 4,146,412 Total Operating Revenues 20,176,555 Operating Expenses: Production 5,533,755 Transmission and distribution 2,432,589 Customer accounting and sales 4,083,837 Uncollectible accounts 39,909 Administrative and general 745,873 Depreciation 3,579,192 Total Operating Expenses 16,415,155 Operating Income (Loss)3,761,400 Nonoperating Revenues (Expenses): Interest revenue 360,977 Interest expense (2,907,756) Franchise and in-lieu-tax (353,474) Total Nonoperating Revenues (Expenses)(2,900,253) Net Income (Loss) Before Transfers 861,147 Transfers out (4,568) Net Income 856,579 Net Assets: Beginning of Fiscal Year 53,563,927 End of Fiscal Year 54,420,506$ 123 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS LIGHT - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Light Operating Revenues: Sale/electricity - residential 11,769,253$ Sale/electricity - commercial and industrial 22,392,573 Sale/electricity - other 1,272,683 Sale/electricity - resale 5,264,096 Other revenue 401,521 Total Operating Revenues 41,100,126 Operating Expenses: Purchase power 24,283,696 Transmission/dispatching 3,150,112 Operation and maintenance 2,906,091 Uncollectible accounts 78,774 Administration general expenditures 3,733,148 Depreciation 1,249,282 Total Operating Expenses 35,401,103 Operating Income 5,699,023 Nonoperating Revenues (Expenses): Interest income 486,909 Interest expense (324,756) Franchise and in-lieu-tax (3,556,258) Gain (loss) on disposal of asset (1,964,653) Total Nonoperating Revenues (Expenses)(5,358,758) Net Income Before Transfers 340,265 Transfers Out (41,390) Net Income 298,875 Net Assets: Beginning of Fiscal Year 58,573,375 Restatements 13,968 Beginning of Fiscal Year, as restated 58,587,343 End of Fiscal Year 58,886,218$ 124 (Unaudited) Financial Trends Page No. 127-131 Revenue Capacity 132-141 Debt Capacity 142-148 Demographic and Economic Information 149-151 Operating Information 152-154 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. 125 THIS PAGE INTENTIONALLY LEFT BLANK 126 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Go v e r n m e n t a l a c t i v i t i e s : In v e s t i n c a p i t a l a s s e t s , 20 , 0 6 6 , 6 9 4 $ (7 , 4 2 4 , 1 0 7 ) $ (6 , 4 7 9 , 0 6 7 ) $ 21 , 3 6 4 , 7 5 5 $ 20 , 1 9 2 , 1 0 8 $ 18 , 3 8 5 , 2 9 4 $ 19 , 0 9 0 , 2 3 1 $ 19 , 3 7 2 , 2 3 7 $ 19 , 2 9 7 , 8 6 2 $ 28 , 8 6 2 , 6 9 6 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 6, 4 3 0 , 1 9 9 8, 6 8 8 , 6 4 6 13 , 7 4 7 , 2 4 0 15 , 2 4 5 , 7 2 2 21 , 6 2 4 , 0 5 9 38 , 6 9 4 , 1 0 5 60 , 4 7 0 , 8 9 4 55 , 7 3 4 , 8 2 1 35 , 3 1 2 , 0 3 3 5, 3 0 6 , 0 3 9 Un r e s t r i c t e d (1 1 , 5 5 8 , 8 8 6 ) 16 , 1 9 8 , 2 9 1 18 , 3 8 2 , 9 1 8 (1 1 , 4 6 4 , 3 4 0 ) (1 8 , 3 4 7 , 9 4 3 ) (3 1 , 8 1 5 , 3 8 8 ) (5 8 , 8 7 4 , 8 2 5 ) (6 7 , 0 4 7 , 3 0 9 ) (5 0 , 9 8 2 , 7 4 6 ) 22 , 3 9 6 , 3 0 9 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 1 4 , 9 3 8 , 0 0 7 $ 17 , 4 6 2 , 8 3 0 $ 25 , 6 5 1 , 0 9 1 $ 25 , 1 4 6 , 1 3 7 $ 23 , 4 6 8 , 2 2 4 $ 25 , 2 6 4 , 0 1 1 $ 20 , 6 8 6 , 3 0 0 $ 8, 0 5 9 , 7 4 9 $ 3, 6 2 7 , 1 4 9 $ 56 , 5 6 5 , 0 4 4 $ Bu s i n e s s - t y p e a c t i v i t i e s : In v e s t i n c a p i t a l a s s e t s , - $ 4 8 , 8 6 8 , 5 5 4 $ 51 , 5 2 8 , 9 6 4 $ 53 , 2 0 7 , 8 1 1 $ 57 , 3 1 2 , 8 6 9 $ 57 , 3 7 2 , 6 6 2 $ 57 , 5 7 8 , 9 5 6 $ 58 , 6 9 6 , 4 9 9 $ 35 , 1 6 0 , 3 1 1 $ 60 , 5 6 2 , 1 9 9 $ n e t o f r e l a t e d d e b t Re s t r i c t e d - - 5 , 6 2 2 , 7 3 3 5, 4 2 6 , 2 3 2 5, 2 2 8 , 0 5 6 5, 0 4 5 , 4 9 5 5, 0 4 9 , 2 3 4 5, 0 6 9 , 3 6 1 3, 1 9 2 , 5 6 1 10 , 8 4 5 , 1 9 3 Un r e s t r i c t e d 10 1 , 7 5 5 , 2 1 1 58 , 6 1 5 , 1 0 4 58 , 5 6 7 , 9 0 9 64 , 8 5 5 , 7 2 3 69 , 4 3 7 , 7 0 8 67 , 4 7 3 , 5 3 4 64 , 0 1 4 , 4 1 8 61 , 2 2 1 , 6 8 2 85 , 0 4 7 , 5 8 4 53 , 4 6 4 , 6 4 4 To t a l b u s i n e s s - t y p e a c t i v i t i e s n e t a s s e t s 1 0 1 , 7 5 5 , 2 1 1 $ 10 7 , 4 8 3 , 6 5 8 $ 11 5 , 7 1 9 , 6 0 6 $ 12 3 , 4 8 9 , 7 6 6 $ 13 1 , 9 7 8 , 6 3 3 $ 12 9 , 8 9 1 , 6 9 1 $ 12 6 , 6 4 2 , 6 0 8 $ 12 4 , 9 8 7 , 5 4 2 $ 12 3 , 4 0 0 , 4 5 6 $ 12 4 , 8 7 2 , 0 3 6 $ Pr i m a r y g o v e r n m e n t : In v e s t i n c a p i t a l a s s e t s , 20 , 0 6 6 , 6 9 4 $ 41 , 4 4 4 , 4 4 7 $ 45 , 0 4 9 , 8 9 7 $ 74 , 5 7 2 , 5 6 6 $ 77 , 5 0 4 , 9 7 7 $ 75 , 7 5 7 , 9 5 6 $ 76 , 6 6 9 , 1 8 7 $ 78 , 0 6 8 , 7 3 6 $ 54 , 4 5 8 , 1 7 3 $ 89 , 4 2 4 , 8 9 5 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 6, 4 3 0 , 1 9 9 8, 6 8 8 , 6 4 6 19 , 3 6 9 , 9 7 3 20 , 6 7 1 , 9 5 4 26 , 8 5 2 , 1 1 5 43 , 7 4 1 , 6 0 0 65 , 5 2 0 , 1 2 8 60 , 8 0 4 , 1 8 2 38 , 5 0 4 , 5 9 4 16 , 1 5 1 , 2 3 2 Un r e s t r i c t e d 90 , 1 9 6 , 3 2 5 74 , 8 1 3 , 3 9 5 76 , 9 5 0 , 8 2 7 53 , 3 9 1 , 3 8 3 51 , 0 8 9 , 7 6 5 35 , 6 5 6 , 1 4 6 5, 1 3 9 , 5 9 3 (5 , 8 2 5 , 6 2 7 ) 34 , 0 6 4 , 8 3 8 75 , 8 6 0 , 9 5 3 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 11 6 , 6 9 3 , 2 1 8 $ 12 4 , 9 4 6 , 4 8 8 $ 14 1 , 3 7 0 , 6 9 7 $ 14 8 , 6 3 5 , 9 0 3 $ 15 5 , 4 4 6 , 8 5 7 $ 15 5 , 1 5 5 , 7 0 2 $ 14 7 , 3 2 8 , 9 0 8 $ 13 3 , 0 4 7 , 2 9 1 $ 12 7 , 0 2 7 , 6 0 5 $ 18 1 , 4 3 7 , 0 8 0 $ Th e C i t y o f A z u s a i m p l e m e n t e d G A S B 3 4 f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 3 . In f o r m a t i o n p r i o r t o t h e i m p l e m e n t a t i o n o f G A S B 3 4 i s n o t a v a i l a b l e . So u r c e : C i t y o f A z u s a A d m i n i s t r a t i v e S e r v i c e s F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 1 - N e t A s s e t s b y C o m p o n e n t La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s o f a c c o u n t i n g ) Fi s c a l Y e a r 127 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Pr o g r a m R e v e n u e : Go v e r n m e n t a l a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s Ge n e r a l g o v e r n m e n t 2, 6 1 7 , 7 6 0 $ 2, 5 5 4 , 4 7 1 $ 2, 1 7 9 , 4 9 3 $ 2, 9 2 3 , 4 7 8 $ 3, 5 5 3 , 4 3 5 $ 3, 9 3 0 , 1 0 6 $ 3, 4 1 8 , 3 9 3 $ 3, 7 6 0 , 1 5 9 $ 3, 8 5 5 , 8 1 0 $ 3, 0 9 0 , 3 0 4 $ Pu b l i c S a f e t y 49 2 , 5 0 1 48 7 , 9 1 1 66 1 , 2 4 6 48 2 , 3 8 6 62 0 , 5 4 2 75 5 , 1 8 6 68 1 , 9 4 3 87 1 , 9 0 0 71 3 , 8 4 6 72 1 , 0 3 2 Co m m u n i t y d e v e l o p m e n t 1, 6 1 9 , 5 5 7 1, 6 6 6 , 6 6 7 1, 2 5 9 , 1 6 0 1, 3 7 0 , 1 5 2 1, 5 9 6 , 4 5 3 1, 6 9 7 , 4 6 7 1, 3 5 8 , 8 7 2 1, 6 5 9 , 0 5 7 1, 9 1 5 , 7 4 1 2, 6 1 5 , 6 3 1 Pa r k s a n d r e c r e a t i o n 52 2 , 9 4 3 51 3 , 8 0 9 47 9 , 6 8 9 65 1 , 0 2 5 62 5 , 9 5 5 68 5 , 4 6 8 1, 1 2 7 , 0 7 7 1, 1 7 9 , 0 8 0 99 7 , 2 7 7 1, 0 4 6 , 5 8 4 Pu b l i c W o r k s 2, 6 8 7 , 2 7 7 2, 8 1 8 , 2 5 0 35 0 , 0 0 6 21 7 , 3 8 9 16 8 , 2 1 8 16 8 , 6 5 7 20 3 , 2 8 0 36 8 , 2 7 5 36 4 , 9 1 0 83 8 , 9 5 8 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2, 7 6 9 , 0 6 6 3, 2 7 4 , 1 0 4 2, 8 0 2 , 8 1 4 2, 7 0 1 , 4 1 0 3, 0 5 4 , 1 7 1 2, 7 3 1 , 1 9 5 5, 3 0 7 , 6 9 6 3, 2 6 1 , 4 7 2 3, 6 5 1 , 4 9 1 3, 2 6 7 , 2 8 7 Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s 27 1 , 8 5 3 90 , 6 6 3 4, 6 3 2 , 5 0 0 82 0 , 7 4 4 49 7 , 9 0 5 46 8 , 2 7 9 28 6 , 8 7 5 65 4 , 4 6 7 10 9 , 2 2 6 13 7 , 1 0 2 To t a l g o v e r n m e n t a l a c t i v i t i e s pr o g r a m r e v e n u e s 10 , 9 8 0 , 9 5 7 11 , 4 0 5 , 8 7 5 12 , 3 6 4 , 9 0 8 9, 1 6 6 , 5 8 4 10 , 1 1 6 , 6 7 9 10 , 4 3 6 , 3 5 8 12 , 3 8 4 , 1 3 6 11 , 7 5 4 , 4 1 0 11 , 6 0 8 , 3 0 1 11 , 7 1 6 , 8 9 8 Bu s i n e s s - t y p e a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s Wa t e r 14 , 0 9 2 , 0 6 0 15 , 9 2 1 , 7 0 2 16 , 4 3 9 , 3 4 1 14 , 9 2 5 , 7 5 7 17 , 2 5 4 , 9 6 3 16 , 5 0 1 , 4 3 4 14 , 8 0 5 , 2 4 1 16 , 1 4 4 , 1 3 0 17 , 7 7 9 , 4 1 7 20 , 0 6 2 , 1 1 8 Li g h t 28 , 6 3 7 , 6 2 9 38 , 2 8 3 , 7 0 6 36 , 1 0 1 , 8 0 1 38 , 0 5 0 , 4 6 2 34 , 9 3 2 , 8 4 0 35 , 9 9 8 , 3 8 9 34 , 4 9 6 , 8 0 5 35 , 1 9 2 , 9 4 1 39 , 1 8 9 , 9 8 0 40 , 9 6 2 , 6 4 8 Se w e r / W a s t e w a t e r 1, 1 5 9 , 8 5 1 1, 2 5 6 , 8 3 1 1, 2 8 1 , 0 8 5 1, 3 6 1 , 1 2 5 1, 3 9 8 , 9 2 5 1, 4 7 0 , 4 5 2 1, 5 0 8 , 3 2 5 1, 5 5 7 , 7 5 8 1, 6 1 5 , 8 4 0 2, 2 2 3 , 8 7 6 Re f u s e c o n t r a c t - - 2 , 5 0 9 , 0 9 6 2, 5 8 7 , 4 1 0 2, 8 1 2 , 5 9 5 2, 9 9 6 , 2 7 5 2, 9 6 8 , 7 4 2 2, 9 3 3 , 3 9 0 3, 0 6 2 , 7 0 0 2, 9 7 6 , 9 4 6 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 80 , 0 0 0 35 , 0 0 0 - - - - - 84 - - To t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m r e v e n u e s 43 , 9 6 9 , 5 4 0 55 , 4 9 7 , 2 3 9 56 , 3 3 1 , 3 2 3 56 , 9 2 4 , 7 5 4 56 , 3 9 9 , 3 2 3 56 , 9 6 6 , 5 5 0 53 , 7 7 9 , 1 1 3 55 , 8 2 8 , 3 0 3 61 , 6 4 7 , 9 3 7 66 , 2 2 5 , 5 8 8 To t a l p r i m a r y g o v e r n m e n t pr o g r a m r e v e n u e s 54 , 9 5 0 , 4 9 7 $ 66 , 9 0 3 , 1 1 4 $ 68 , 6 9 6 , 2 3 1 $ 66 , 0 9 1 , 3 3 8 $ 66 , 5 1 6 , 0 0 2 $ 67 , 4 0 2 , 9 0 8 $ 66 , 1 6 3 , 2 4 9 $ 67 , 5 8 2 , 7 1 3 $ 73 , 2 5 6 , 2 3 8 $ 77 , 9 4 2 , 4 8 6 $ Ex p e n s e s : Go v e r n m e n t a l a c t i v i t i e s : Ge n e r a l g o v e r n m e n t 8, 9 9 6 , 5 7 9 $ 11 , 5 9 0 , 4 8 1 $ 12 , 3 6 3 , 6 3 8 $ 12 , 4 3 0 , 0 2 2 $ 9, 9 6 6 , 7 3 4 $ 11 , 5 8 2 , 3 5 7 $ 15 , 0 4 7 , 0 1 3 $ 16 , 3 6 8 , 3 3 7 $ 12 , 1 9 8 , 9 9 1 $ 11 , 4 8 4 , 0 7 1 $ Pu b l i c s a f e t y 13 , 4 3 7 , 3 9 6 14 , 0 2 4 , 1 9 1 15 , 2 7 1 , 6 8 9 15 , 4 4 2 , 4 1 7 17 , 1 0 1 , 2 1 5 18 , 7 7 2 , 8 6 5 20 , 4 5 9 , 2 6 5 19 , 4 5 8 , 7 9 5 20 , 1 8 7 , 9 1 4 20 , 4 7 5 , 7 9 8 Co m m u n i t y d e v e l o p m e n t 3, 2 0 1 , 4 7 0 2, 7 4 3 , 4 8 9 2, 0 8 9 , 5 3 2 2, 9 5 1 , 3 0 7 10 , 4 6 7 , 8 4 8 4, 1 7 8 , 4 4 9 5, 6 9 0 , 4 5 8 4, 0 4 1 , 5 1 6 3, 4 7 2 , 2 3 7 3, 2 8 6 , 4 2 0 Pa r k s a n d r e c r e a t i o n 3, 1 3 8 , 2 4 4 2, 8 4 9 , 1 4 1 2, 8 9 6 , 4 7 6 3, 1 9 2 , 3 7 3 3, 4 1 2 , 9 1 8 3, 7 3 7 , 7 9 1 4, 0 8 3 , 5 6 5 3, 9 5 0 , 7 8 6 4, 1 8 4 , 6 2 6 4, 1 7 8 , 0 9 8 Pu b l i c w o r k s 6, 3 1 9 , 5 4 0 6, 7 1 2 , 1 9 1 3, 0 1 5 , 5 3 7 2, 9 0 2 , 1 8 9 3, 4 1 8 , 4 9 3 5, 4 9 4 , 8 8 7 4, 5 7 7 , 4 3 5 4, 6 8 8 , 5 3 7 5, 5 3 9 , 8 6 6 8, 8 5 0 , 1 1 3 In t e r e s t o n l o n g - t e r m d e b t 3, 3 2 0 , 9 2 8 2, 7 0 0 , 9 5 1 3, 2 5 4 , 7 5 3 2, 7 5 6 , 9 7 8 3, 4 3 7 , 2 3 1 4, 7 5 7 , 0 6 8 6, 2 2 4 , 6 3 8 7, 2 7 4 , 7 2 3 7, 3 8 0 , 5 9 8 2, 2 4 4 , 3 1 5 To t a l g o v e r n m e n t a l a c t i v i t i e s ex p e n s e s 38 , 4 1 4 , 1 5 7 40 , 6 2 0 , 4 4 4 38 , 8 9 1 , 6 2 5 39 , 6 7 5 , 2 8 6 47 , 8 0 4 , 4 3 9 48 , 5 2 3 , 4 1 7 56 , 0 8 2 , 3 7 4 55 , 7 8 2 , 6 9 4 52 , 9 6 4 , 2 3 2 50 , 5 1 8 , 8 1 5 Bu s i n e s s - t y p e a c t i v i t i e s : Wa t e r 12 , 9 0 9 , 2 6 6 13 , 4 5 7 , 8 3 9 11 , 5 0 1 , 9 2 3 12 , 1 9 2 , 7 8 8 15 , 6 8 1 , 3 8 4 18 , 4 7 3 , 6 8 9 17 , 2 2 5 , 0 8 8 19 , 1 1 4 , 8 4 3 19 , 6 8 0 , 7 1 9 19 , 3 6 6 , 3 2 5 El e c t r i c 29 , 5 1 0 , 5 7 8 36 , 0 4 4 , 0 0 8 34 , 2 8 0 , 5 2 7 36 , 5 7 8 , 6 0 2 34 , 7 1 3 , 2 7 0 38 , 8 2 7 , 6 3 7 36 , 9 3 9 , 3 0 1 39 , 8 0 3 , 6 9 0 40 , 0 8 3 , 6 8 0 39 , 1 1 5 , 1 6 1 Se w e r / W a s t e w a t e r 90 1 , 8 4 9 96 5 , 9 7 7 1, 0 7 5 , 0 6 3 1, 2 6 7 , 3 2 7 1, 6 0 4 , 5 5 7 1, 6 5 3 , 0 4 3 1, 9 9 5 , 7 8 5 1, 9 8 6 , 1 4 2 1, 9 8 2 , 2 4 1 2, 0 8 3 , 7 5 6 Re f u s e c o n t r a c t - - 2 , 5 2 6 , 1 3 4 2, 6 4 2 , 7 8 0 2, 9 1 8 , 7 3 2 3, 2 4 7 , 7 3 4 3, 0 2 8 , 2 7 0 2, 9 2 4 , 3 0 3 2, 9 6 2 , 3 9 5 2, 8 5 1 , 8 8 2 To t a l b u s i n e s s - t y p e a c t i v i t i e s ex p e n s e s 43 , 3 2 1 , 6 9 3 50 , 4 6 7 , 8 2 4 49 , 3 8 3 , 6 4 7 52 , 6 8 1 , 4 9 7 54 , 9 1 7 , 9 4 3 62 , 2 0 2 , 1 0 3 59 , 1 8 8 , 4 4 4 63 , 8 2 8 , 9 7 8 64 , 7 0 9 , 0 3 5 63 , 4 1 7 , 1 2 4 To t a l p r i m a r y g o v e r n m e n t pr o g r a m e x p e n s e s 81 , 7 3 5 , 8 5 0 91 , 0 8 8 , 2 6 8 88 , 2 7 5 , 2 7 2 92 , 3 5 6 , 7 8 3 10 2 , 7 2 2 , 3 8 2 11 0 , 7 2 5 , 5 2 0 11 5 , 2 7 0 , 8 1 8 11 9 , 6 1 1 , 6 7 2 11 7 , 6 7 3 , 2 6 7 11 3 , 9 3 5 , 9 3 9 Ne t r e v e n u e s ( e x p e n s e s ) : Go v e r n m e n t a l a c t i v i t i e s (2 7 , 4 3 3 , 2 0 0 ) (2 9 , 2 1 4 , 5 6 9 ) (2 6 , 5 2 6 , 7 1 7 ) (3 0 , 5 0 8 , 7 0 2 ) (3 7 , 6 8 7 , 7 6 0 ) (3 8 , 0 8 7 , 0 5 9 ) (4 1 , 4 9 1 , 5 2 0 ) (4 4 , 0 2 8 , 2 8 4 ) (4 1 , 3 5 5 , 9 3 1 ) (3 8 , 8 0 1 , 9 1 7 ) Bu s i n e s s - t y p e a c t i v i t i e s 64 7 , 8 4 7 5, 0 2 9 , 4 1 5 6, 9 4 7 , 6 7 6 4, 2 4 3 , 2 5 7 1, 4 8 1 , 3 8 0 (5 , 2 3 5 , 5 5 3 ) (5 , 4 0 9 , 3 3 1 ) (8 , 0 0 0 , 6 7 5 ) (3 , 0 6 1 , 0 9 8 ) 2, 8 0 8 , 4 6 4 To t a l n e t r e v e n u e s ( e x p e n s e s ) (2 6 , 7 8 5 , 3 5 3 ) (2 4 , 1 8 5 , 1 5 4 ) (1 9 , 5 7 9 , 0 4 1 ) (2 6 , 2 6 5 , 4 4 5 ) (3 6 , 2 0 6 , 3 8 0 ) (4 3 , 3 2 2 , 6 1 2 ) (4 6 , 9 0 0 , 8 5 1 ) (5 2 , 0 2 8 , 9 5 9 ) (4 4 , 4 1 7 , 0 2 9 ) (3 5 , 9 9 3 , 4 5 3 ) Fi s c a l Y e a r CI T Y O F A Z U S A Ta b l e 2 - C h a n g e i n N e t A s s e t s La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s ) 128 () 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Ge n e r a l r e v e n u e s a n d o t h e r c h a n g e s i n n e t a s s e t s : Go v e r n m e n t a l a c t i v i t i e s : Ta x e s : Pr o p e r t y t a x e s , g e n e r a l p u r p o s e 7, 8 7 3 , 4 7 0 $ 8, 7 7 1 , 4 9 7 $ 8, 6 0 9 , 4 8 6 $ 9, 7 3 7 , 0 4 1 $ 11 , 0 4 4 , 3 3 5 $ 10 , 3 7 2 , 5 2 9 $ 13 , 5 1 8 , 2 5 3 $ 10 , 0 3 2 , 9 7 9 $ 12 , 1 0 8 , 1 5 5 $ 9, 8 5 6 , 3 5 4 $ Tr a n s i e n t o c c u p a n c y t a x e s 20 9 , 4 9 6 17 5 , 5 1 8 25 9 , 3 8 4 24 2 , 5 8 1 23 4 , 4 2 7 24 3 , 2 6 1 22 6 , 2 6 8 20 0 , 8 4 0 19 2 , 6 5 9 21 0 , 9 2 3 Sa l e s t a x 4, 6 5 7 , 4 3 5 5, 4 9 5 , 9 6 5 5, 9 0 2 , 6 4 1 5, 4 5 2 , 6 5 2 6, 0 2 5 , 7 5 6 6, 3 2 8 , 9 6 2 6, 2 0 2 , 3 3 5 4, 7 1 6 , 3 0 5 5, 6 7 8 , 1 7 7 6, 2 3 4 , 6 1 4 Fr a n c h i s e t a x e s 4, 8 4 9 , 1 1 4 5, 6 9 9 , 2 7 6 5, 1 7 0 , 8 4 6 5, 2 7 5 , 9 7 2 5, 5 4 4 , 5 9 4 5, 6 5 4 , 8 9 6 5, 8 2 1 , 9 7 6 5, 5 9 5 , 4 2 3 6, 2 2 2 , 5 3 7 6, 3 5 5 , 8 2 8 Bu s i n e s s l i c e n s e s t a x e s 1, 4 0 0 , 5 0 7 1, 4 3 8 , 6 1 2 1, 5 3 8 , 1 1 3 1, 5 3 7 , 4 4 2 1, 6 3 7 , 7 7 5 1, 6 4 0 , 4 2 5 1, 7 5 5 , 8 3 1 1, 8 2 9 , 5 0 3 1, 8 2 2 , 1 0 2 1, 8 6 5 , 1 9 5 Ut i l i t y U s e r s t a x 2, 0 5 1 , 7 5 3 2, 7 7 9 , 8 0 2 2, 9 1 9 , 7 4 0 3, 0 8 6 , 5 8 9 3, 2 8 9 , 2 1 0 3, 3 0 2 , 4 4 2 3, 2 6 0 , 1 9 1 3, 0 5 9 , 1 2 1 3, 1 6 0 , 7 8 8 3, 2 5 0 , 4 6 9 Ot h e r t a x e s 3, 6 1 6 , 2 7 6 4, 1 2 6 , 9 1 7 4, 4 2 9 , 6 4 9 4, 5 0 4 , 3 5 5 4, 7 9 8 , 6 9 9 1, 3 9 7 , 6 1 8 1, 1 3 1 , 8 8 5 1, 1 0 2 , 3 3 9 2, 6 7 8 , 7 2 7 1, 2 7 2 , 9 6 7 Mo t o r v e h i c l e i n l i e u - u n r e s t r i c t e d 2, 6 3 1 , 9 8 8 2, 1 6 0 , 6 3 3 3, 8 5 7 , 2 0 5 95 , 4 7 0 32 6 , 1 0 1 23 2 , 9 8 9 15 7 , 0 1 2 13 7 , 5 5 7 14 3 , 4 0 1 42 0 , 1 2 6 In v e s t m e n t i n c o m e 1, 7 7 5 , 8 8 1 2, 0 2 7 , 7 4 5 2, 2 0 2 , 2 7 2 2, 4 8 9 , 0 9 4 4, 3 2 2 , 5 9 4 3, 9 3 2 , 5 4 0 3, 9 6 7 , 5 4 9 2, 9 1 4 , 7 9 0 2, 5 4 0 , 1 3 3 1, 2 8 4 , 4 8 4 Ot h e r g e n e r a l r e v e n u e s 18 6 , 4 1 3 (7 4 4 , 8 8 3 ) 37 , 8 8 4 13 1 , 9 1 7 37 3 , 0 6 3 2, 7 0 2 , 6 8 0 70 7 , 5 3 6 44 1 , 9 5 6 85 4 , 9 4 5 (5 0 , 0 6 8 ) - - - - - - - - - 5 9 , 9 3 3 , 8 3 2 Tr a n s f e r s 2, 3 6 0 , 1 6 4 1, 5 4 4 , 2 2 3 2, 3 0 3 , 5 4 5 66 4 , 2 0 6 70 0 , 0 0 0 4, 3 9 2 , 8 4 6 2, 2 4 9 , 3 8 7 1, 3 8 6 , 3 8 0 1, 3 2 6 , 3 7 4 1, 0 8 2 , 2 6 2 To t a l g o v e r n m e n t a l a c t i v i t i e s 31 , 6 1 2 , 4 9 7 33 , 4 7 5 , 3 0 5 37 , 2 3 0 , 7 6 5 33 , 2 1 7 , 3 1 9 38 , 2 9 6 , 5 5 4 40 , 2 0 1 , 1 8 8 38 , 9 9 8 , 2 2 3 31 , 4 1 7 , 1 9 3 36 , 7 2 7 , 9 9 8 91 , 7 1 6 , 9 8 6 Bu s i n e s s - t y p e a c t i v i t i e s : Pr o p e r t y t a x e s , g e n e r a l p u r p o s e - - 50 1 , 2 9 7 63 8 , 8 2 1 59 4 , 0 6 5 63 1 , 0 3 6 58 6 , 2 5 4 55 5 , 1 2 1 57 1 , 0 3 6 55 5 , 2 2 5 In v e s t m e n t i n c o m e 1, 9 3 5 , 6 0 9 1, 4 4 5 , 3 8 3 1, 8 9 5 , 3 2 4 2, 6 1 9 , 0 9 0 4, 2 3 6 , 6 4 5 4, 9 5 4 , 3 6 7 2, 5 7 9 , 9 7 3 6, 2 0 1 , 2 8 9 1, 6 2 6 , 2 9 1 25 7 , 6 5 3 Ga i n o n s a l e o f a s s e t s 93 2 8, 4 7 3 29 9 , 4 6 9 18 3 , 8 2 9 - (3 8 , 3 7 3 ) 79 7 2, 3 0 6 1, 3 5 0 (1 , 9 6 6 , 0 0 3 ) Tr a n s f e r s (2 , 3 6 0 , 1 6 4 ) (1 , 5 4 4 , 2 2 3 ) (2 , 3 0 3 , 5 4 5 ) (6 6 4 , 2 0 6 ) (7 0 0 , 0 0 0 ) (4 , 3 9 2 , 8 4 6 ) (2 , 2 4 9 , 3 8 7 ) (1 , 3 8 6 , 3 8 0 ) (1 , 3 2 6 , 3 7 4 ) (1 , 0 8 2 , 2 6 2 ) Mi s c e l l a n e o u s 3, 9 5 3 , 8 5 1 2, 3 6 9 , 7 4 7 89 5 , 7 2 7 27 3 , 2 9 6 2, 6 7 6 , 8 8 2 1, 8 4 1 , 3 0 6 1, 2 3 0 , 8 3 5 1, 3 3 6 , 1 6 8 35 8 , 8 9 1 88 4 , 5 3 5 To t a l b u s i n e s s - t y p e a c t i v i t i e s 3, 5 3 0 , 2 2 8 2, 2 7 9 , 3 8 0 1, 2 8 8 , 2 7 2 3, 0 5 0 , 8 3 0 6, 8 0 7 , 5 9 2 2, 9 9 5 , 4 9 0 2, 1 4 8 , 4 7 2 6, 7 0 8 , 5 0 4 1, 2 3 1 , 1 9 4 (1 , 3 5 0 , 8 5 2 ) To t a l g e n e r a l r e v e n u e s 35 , 1 4 2 , 7 2 5 35 , 7 5 4 , 6 8 5 38 , 5 1 9 , 0 3 7 36 , 2 6 8 , 1 4 9 45 , 1 0 4 , 1 4 6 43 , 1 9 6 , 6 7 8 41 , 1 4 6 , 6 9 5 38 , 1 2 5 , 6 9 7 37 , 9 5 9 , 1 9 2 90 , 3 6 6 , 1 3 4 Ch a n g e s i n n e t a s s e t s : Go v e r n m e n t a l a c t i v i t i e s 4, 1 7 9 , 2 9 7 4, 2 6 0 , 7 3 6 10 , 7 0 4 , 0 4 8 2, 7 0 8 , 6 1 7 60 8 , 7 9 4 2, 1 1 4 , 1 2 9 (2 , 4 9 3 , 2 9 7 ) (1 2 , 6 1 1 , 0 9 1 ) (4 , 6 2 7 , 9 3 3 ) 52 , 9 1 5 , 0 6 9 Bu s i n e s s - t y p e a c t i v i t i e s 4, 1 7 8 , 0 7 5 7, 3 0 8 , 7 9 5 8, 2 3 5 , 9 4 8 7, 2 9 4 , 0 8 7 8, 2 8 8 , 9 7 2 (2 , 2 4 0 , 0 6 3 ) (3 , 2 6 0 , 8 5 9 ) (1 , 2 9 2 , 1 7 1 ) (1 , 8 2 9 , 9 0 4 ) 1, 4 5 7 , 6 1 2 To t a l p r i m a r y g o v e r n m e n t 8, 3 5 7 , 3 7 2 $ 11 , 5 6 9 , 5 3 1 $ 1 8 , 9 3 9 , 9 9 6 $ 10 , 0 0 2 , 7 0 4 $ 8 , 8 9 7 , 7 6 6 $ (1 2 5 , 9 3 4 ) $ (5 , 7 5 4 , 1 5 6 ) $ (1 3 , 9 0 3 , 2 6 2 ) $ (6 , 4 5 7 , 8 3 7 ) $ 54 , 3 7 2 , 6 8 1 $ Th e C i t y o f A z u s a i m p l e m e n t e d G A S B 3 4 f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 3 . In f o r m a t i o n p r i o r t o t h e i m p l e m e n t a t i o n o f G A S B 3 4 i s n o t a v a i l a b l e . So u r c e : C i t y o f A z u s a A d m i n i s t r a t i v e S e r v i c e s F i n a n c e D e p a r t m e n t Fi s c a l Y e a r CI T Y O F A Z U S A Ta b l e 2 - C h a n g e i n N e t A s s e t s La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s ) Ex t r a o r d i n a r y g a i n / ( l o s s o n d i s s o l u t i o n o f r e d e v e l o p m e n t ag e n c y 129 Ta b l e 3 - F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 Ge n e r a l f u n d : Re s e r v e d 2, 0 2 5 , 2 7 8 $ 97 , 5 6 1 $ 17 5 , 8 9 0 $ 15 0 , 7 0 0 $ 14 2 , 1 3 6 $ 19 6 , 0 9 5 $ 50 0 , 3 8 9 $ 5, 8 2 7 , 2 9 4 $ Un r e s e r v e d 8, 0 4 1 , 8 9 1 9, 2 4 2 , 8 6 7 10 , 2 3 5 , 7 7 1 11 , 6 4 4 , 3 8 7 14 , 2 2 5 , 7 8 3 13 , 7 5 3 , 6 6 7 11 , 9 1 4 , 8 6 7 3, 7 7 7 , 7 5 3 To t a l g e n e r a l f u n d 10 , 0 6 7 , 1 6 9 $ 9, 3 4 0 , 4 2 8 $ 10 , 4 1 1 , 6 6 1 $ 11 , 7 9 5 , 0 8 7 $ 14 , 3 6 7 , 9 1 9 $ 13 , 9 4 9 , 7 6 2 $ 12 , 4 1 5 , 2 5 6 $ 9, 6 0 5 , 0 4 7 $ Al l o t h e r g o v e r n m e n t a l f u n d s : Re s e r v e d 1, 6 5 7 , 9 4 7 $ 3, 1 9 6 , 5 4 5 $ 4, 4 4 5 , 8 1 6 $ 3, 2 3 6 , 0 9 7 $ 17 , 8 7 3 , 0 1 1 $ 23 , 0 6 9 , 6 4 0 $ 43 , 4 8 9 , 2 7 6 $ 47 , 4 7 2 , 5 6 4 $ Un r e s e r v e d , r e p o r t e d i n : Sp e c i a l r e v e n u e f u n d s 7, 0 3 2 , 5 0 8 6, 2 6 3 , 5 4 5 13 , 6 2 9 , 2 0 1 13 , 1 2 0 , 0 5 9 13 , 6 7 1 , 4 7 2 15 , 6 1 6 , 8 4 1 21 , 4 9 1 , 6 2 4 13 , 0 2 2 , 2 9 9 Ca p i t a l p r o j e c t s f u n d s 4, 8 4 4 , 5 7 6 8, 9 3 4 , 9 8 4 2, 7 0 5 , 2 3 9 3, 0 1 0 , 0 7 4 2, 4 8 7 , 6 5 5 1, 9 0 4 , 4 5 7 1, 3 2 0 , 5 5 0 1, 0 4 5 , 2 7 9 De b t s e r v i c e f u n d s 56 3 , 9 3 9 49 3 , 0 0 2 50 2 , 0 3 9 50 2 , 2 2 3 49 3 , 1 8 8 50 2 , 2 4 4 48 2 , 9 1 5 48 2 , 5 4 8 Re d e v e l o p m e n t a g e n c y (8 , 4 3 7 , 4 6 6 ) (1 5 , 0 7 1 , 0 0 4 ) (4 , 0 6 7 , 3 4 6 ) (6 , 0 8 4 , 3 8 3 ) (3 0 , 7 4 8 , 2 0 9 ) (2 3 , 3 0 7 , 8 9 0 ) (3 6 , 1 2 9 , 5 6 2 ) (4 2 , 7 0 9 , 3 5 9 ) Un a s s i g n e d To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 5, 6 6 1 , 5 0 4 $ 3, 8 1 7 , 0 7 2 $ 17 , 2 1 4 , 9 4 9 $ 13 , 7 8 4 , 0 7 0 $ 3, 7 7 7 , 1 1 7 $ 17 , 7 8 5 , 2 9 2 $ 30 , 6 5 4 , 8 0 3 $ 19 , 3 1 3 , 3 3 1 $ Ge n e r a l f u n d : 20 1 1 20 1 2 No n s p e n d a b l e 21 , 6 1 5 , 2 6 3 $ 20 , 9 5 1 , 4 6 8 $ Un a s s i g n e d (5 , 3 1 1 , 3 0 4 ) (5 , 8 1 7 , 3 1 2 ) To t a l g e n e r a l f u n d : 16 , 3 0 3 , 9 5 9 $ 15 , 1 3 4 , 1 5 6 $ Al l o t h e r g o v e r n m e n t a l f u n d s : No n s p e n d a b l e 14 , 8 9 2 , 5 5 1 $ 8, 0 3 8 $ Re s t r i c t e d 23 , 2 9 7 , 5 9 9 11 , 0 6 2 , 0 7 4 Un a s s i g n e d (3 2 , 6 2 5 , 0 3 8 ) (1 8 7 , 4 6 7 ) To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 5, 5 6 5 , 1 1 2 $ 10 , 8 8 2 , 6 4 5 $ GA S B S t a t e m e n t N o . 5 4 - F u n d B a l a n c e R e p o r t i n g a n d G o v e r n m e n t F u n d T y p e D e f i n i t i o n , w a s i m p l e m e n t e d i n f i s c a l y e a r 2 0 1 0 - 2 0 1 1 . So u r c e : C i t y o f A z u s a A d m i n i s t r a t i v e S e r v i c e s F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A La s t T e n F i s c a l Y e a r s ( m o d i f i e d a c c r u a l b a s i s ) Fi s c a l Y e a r 130 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Re v e n u e s : Ta x e s 24 , 9 1 5 , 0 9 6 $ 27 , 6 2 8 , 2 3 6 $ 29 , 3 9 4 , 9 5 0 $ 26 , 3 8 7 , 8 0 5 $ 28 , 9 8 4 , 0 7 2 $ 29 , 1 9 0 , 3 0 5 $ 31 , 2 6 5 , 0 6 7 $ 27 , 0 3 3 , 8 5 9 $ 32 , 2 0 6 , 9 5 4 $ 29 , 3 5 3 , 6 2 6 $ As s e s s m e n t s 2, 1 4 1 , 8 8 6 1, 9 1 5 , 4 0 4 1, 5 6 2 , 6 9 0 2, 1 6 6 , 4 3 5 2, 6 3 8 , 2 9 3 2, 6 6 1 , 6 1 8 2, 9 3 0 , 8 9 7 3, 0 2 7 , 0 1 6 3, 0 9 8 , 2 1 9 2, 2 0 1 , 1 1 7 Li c e n s e s a n d p e r m i t s 79 4 , 7 6 6 46 3 , 1 2 4 36 1 , 9 1 0 43 3 , 6 7 3 48 1 , 9 9 4 53 2 , 7 7 5 38 1 , 9 9 3 47 2 , 3 8 9 61 0 , 2 9 8 1, 2 7 0 , 2 2 1 In t e r g o v e r n m e n t a l 2, 8 9 8 , 2 9 0 3, 1 8 6 , 2 4 4 2, 8 5 2 , 7 2 5 3, 6 1 7 , 1 5 2 3, 6 0 9 , 1 6 9 3, 3 8 7 , 0 7 4 5, 9 6 0 , 1 0 3 4, 0 6 4 , 9 5 1 3, 8 2 9 , 5 1 3 3, 4 8 2 , 4 9 9 Ch a r g e s f o r s e r v i c e s 4, 8 5 8 , 9 2 1 5, 5 7 8 , 7 3 7 2, 3 1 6 , 9 2 7 2, 4 8 4 , 5 1 3 2, 5 6 5 , 9 7 4 3, 0 0 8 , 5 2 4 2, 7 3 4 , 7 7 3 3, 1 8 5 , 6 6 0 3, 0 5 9 , 3 6 9 3, 3 9 9 , 2 7 6 De v e l o p e r p a r t i c i p a t i o n - - 4, 6 3 2 , 5 0 0 - - - - - 1, 2 9 7 , 5 8 0 - In v e s t m e n t i n c o m e 1, 1 2 0 , 9 2 7 1, 2 8 8 , 9 4 3 1, 1 7 3 , 2 0 7 1, 2 9 4 , 5 0 8 3, 2 0 5 , 5 6 1 2, 7 6 5 , 2 1 9 1, 8 5 9 , 4 2 4 1, 3 3 5 , 9 2 2 99 4 , 6 2 1 87 2 , 1 1 8 Fi n e s a n d f o r f e i t u r e s 44 7 , 8 8 8 31 3 , 2 7 5 72 6 , 7 2 6 55 6 , 7 7 6 81 5 , 5 5 8 89 7 , 8 1 6 96 7 , 0 1 2 1, 1 0 4 , 7 1 5 11 9 , 1 1 1 97 8 , 8 2 9 Co n t r i b u t i o n s 93 , 2 7 5 87 , 6 9 6 29 8 , 4 3 1 15 4 , 6 3 6 10 6 , 5 9 2 99 , 2 1 1 10 6 , 4 5 0 11 3 , 3 6 3 15 7 , 9 3 0 10 9 , 2 5 5 Mi s c e l l a n e o u s 23 6 , 8 9 7 (4 4 2 , 1 4 2 ) 50 , 4 5 3 16 6 , 6 7 7 42 2 , 3 1 3 3, 0 0 1 , 9 3 8 71 3 , 5 4 7 57 3 , 0 0 8 - 1, 4 9 2 , 0 3 8 To t a l R e v e n u e s 37 , 5 0 7 , 9 4 6 40 , 0 1 9 , 5 1 7 43 , 3 7 0 , 5 1 9 37 , 2 6 2 , 1 7 5 42 , 8 2 9 , 5 2 6 45 , 5 4 4 , 4 8 0 46 , 9 1 9 , 2 6 6 40 , 9 1 0 , 8 8 3 45 , 3 7 3 , 5 9 5 43 , 1 5 8 , 9 7 9 Ex p e n d i t u r e s : Cu r r e n t : Ge n e r a l g o v e r n m e n t 9, 0 4 5 , 6 5 4 7, 1 9 2 , 8 1 5 7, 7 6 7 , 2 4 3 9, 7 0 1 , 3 5 2 9, 0 7 0 , 9 6 7 11 , 1 3 6 , 4 2 0 12 , 4 9 0 , 5 8 5 14 , 2 4 8 , 8 8 1 10 , 6 2 3 , 6 2 3 10 , 0 7 0 , 7 1 3 Pu b l i c s a f e t y 13 , 0 8 2 , 0 2 1 13 , 8 7 0 , 2 0 9 15 , 1 2 8 , 7 3 0 15 , 1 1 1 , 8 5 4 16 , 8 1 3 , 6 9 9 18 , 5 3 4 , 1 2 6 26 , 9 4 8 , 7 9 3 19 , 1 4 4 , 1 6 9 19 , 8 2 4 , 3 6 9 20 , 3 7 9 , 6 7 2 Co m m u n i t y d e v e l o p m e n t 3, 2 0 1 , 5 4 5 2, 7 3 0 , 8 7 8 2, 0 7 7 , 0 4 8 2, 9 4 8 , 6 8 3 10 , 4 5 5 , 7 0 4 4, 1 6 6 , 2 2 3 5, 1 9 1 , 9 3 2 3, 2 7 1 , 6 7 2 3, 4 2 3 , 2 2 4 3, 2 2 3 , 2 0 1 Pa r k s a n d r e c r e a t i o n 2, 9 0 7 , 3 9 6 2, 6 2 8 , 1 8 1 2, 6 4 6 , 3 1 7 2, 9 0 2 , 6 0 3 3, 0 5 4 , 9 6 4 3, 3 8 8 , 2 1 8 3, 6 0 7 , 8 3 8 3, 5 1 9 , 6 2 6 3, 7 2 9 , 1 2 5 3, 7 7 0 , 4 6 5 Pu b l i c W o r k s 6, 2 3 7 , 6 6 4 6, 5 5 0 , 2 4 7 2, 8 6 2 , 6 2 8 2, 7 7 2 , 4 3 7 2, 9 6 4 , 7 4 9 3, 6 6 6 , 0 1 0 3, 8 4 7 , 8 2 2 3, 9 6 3 , 8 2 0 4, 2 0 4 , 1 8 0 7, 3 5 8 , 6 4 4 Ca p i t a l O u t l a y 3, 7 5 1 , 6 0 1 4, 6 8 2 , 1 3 6 1, 8 7 4 , 6 5 3 2, 9 8 2 , 7 5 6 3, 3 3 3 , 9 3 4 4, 8 4 7 , 7 8 6 3, 4 9 3 , 0 9 6 2, 8 0 4 , 3 4 5 2, 7 6 2 , 6 9 8 1, 5 5 4 , 1 5 1 De b t s e r v i c e : Pr i n c i p a l r e t i r e m e n t 98 8 , 5 7 7 15 , 7 2 2 , 8 4 0 1, 3 4 0 , 0 0 0 1, 0 8 5 , 0 0 0 1, 1 0 0 , 0 0 0 91 5 , 0 0 0 1, 3 5 5 , 0 0 0 2, 0 2 0 , 0 0 0 2, 4 9 4 , 2 1 2 2, 6 1 5 , 7 1 7 In t e r e s t a n d f i s c a l c h a r g e s 3, 2 4 2 , 2 3 4 3, 6 6 4 , 5 2 1 3, 6 3 3 , 8 4 4 2, 6 2 4 , 1 1 3 3, 3 1 9 , 4 7 1 4, 3 9 2 , 1 7 8 5, 2 9 8 , 8 2 0 7, 1 1 5 , 4 2 5 7, 2 9 5 , 6 8 0 2, 5 3 7 , 6 6 5 Pa s s - t h r o u g h a g r e e m e n t p a y m e n t s - 3, 3 8 5 , 9 8 2 3, 3 8 9 , 2 7 8 - - - - - - - - - - - - 71 8 , 2 3 7 87 8 , 5 8 1 - - - To t a l E x p e n d i t u r e s 42 , 4 5 6 , 6 9 2 60 , 4 2 7 , 8 0 9 40 , 7 1 9 , 7 4 1 40 , 1 2 8 , 7 9 8 50 , 1 1 3 , 4 8 8 51 , 7 6 4 , 1 9 8 63 , 1 1 2 , 4 6 7 56 , 0 8 7 , 9 3 8 54 , 3 5 7 , 1 1 1 51 , 5 1 0 , 2 2 8 Ex c e s s ( D e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s (4 , 9 4 8 , 7 4 6 ) (2 0 , 4 0 8 , 2 9 2 ) 2, 6 5 0 , 7 7 8 (2 , 8 6 6 , 6 2 3 ) (7 , 2 8 3 , 9 6 2 ) (6 , 2 1 9 , 7 1 8 ) (1 6 , 1 9 3 , 2 0 1 ) (1 5 , 1 7 7 , 0 5 5 ) (8 , 9 8 3 , 5 1 6 ) (8 , 3 5 1 , 2 4 9 ) Ot h e r F i n a n c i n g S o u r c e s ( U s e s ) : Tr a n s f e r i n 14 , 3 7 4 , 3 1 5 30 , 1 2 5 , 5 3 8 19 , 3 8 3 , 2 7 2 12 , 5 1 3 , 8 3 5 8, 8 9 1 , 4 3 3 51 , 4 2 2 , 8 0 8 25 , 9 2 5 , 0 6 7 10 , 7 1 0 , 7 7 5 24 , 5 6 9 , 6 2 9 5, 9 0 0 , 6 3 2 Tr a n s f e r o u t (1 3 , 1 3 1 , 1 1 4 ) (2 8 , 6 9 2 , 9 9 8 ) (1 7 , 1 5 5 , 2 5 0 ) (1 1 , 8 4 9 , 6 2 9 ) (9 , 2 0 8 , 3 0 3 ) (4 7 , 1 7 9 , 9 1 2 ) (2 3 , 6 7 5 , 6 8 0 ) (9 , 3 6 2 , 5 9 5 ) (2 3 , 8 4 1 , 2 3 9 ) (4 , 8 1 8 , 3 7 0 ) No t e s a n d l o a n s i s s u e d 13 0 , 0 9 8 16 , 4 0 5 , 0 0 0 9, 1 8 6 , 3 5 7 23 2 , 0 3 8 16 6 , 7 1 1 20 , 8 2 0 , 1 8 2 25 , 8 7 9 , 9 2 4 39 1 , 8 6 7 98 6 , 3 1 4 1, 3 0 5 , 8 9 2 Ot h e r f i n a n c i n g s o u r c e s - 7, 6 8 0 - - - (4 , 9 3 5 , 0 0 0 ) (3 2 3 , 4 1 0 ) - - - To t a l O t h e r F i n a n c i n g S o u r c e s ( U s e s ) 1, 3 7 3 , 2 9 9 17 , 8 4 5 , 2 2 0 11 , 4 1 4 , 3 7 9 89 6 , 2 4 4 (1 5 0 , 1 5 9 ) 20 , 1 2 8 , 0 7 8 27 , 8 0 5 , 9 0 1 1, 7 4 0 , 0 4 7 1, 7 1 4 , 7 0 4 2, 3 8 8 , 1 5 4 Ex t r a o r d i n a r y g a i n / ( l o s s ) o n d i s s o l u t i o n o f r e d e v e l o p m e n t a g e n c y - - - - - - - - - 10 , 0 8 7 , 9 9 9 Ne t c h a n g e i n f u n d b a l a n c e s (3 , 5 7 5 , 4 4 7 ) $ (2 , 5 6 3 , 0 7 2 ) $ 14 , 0 6 5 , 1 5 7 $ (1 , 9 7 0 , 3 7 9 ) $ (7 , 4 3 4 , 1 2 1 ) $ 13 , 9 0 8 , 3 6 0 $ 11 , 6 1 2 , 7 0 0 $ (1 3 , 4 3 7 , 0 0 8 ) $ (7 , 2 6 8 , 8 1 2 ) $ 4, 1 2 4 , 9 0 4 $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 10 . 9 % 40 . 9 % 21 . 5 % 10 . 0 % 9. 4 % 11 . 3 % 11 . 2 % 17 . 1 % 19 . 0 % 10 . 3 % So u r c e : C i t y o f A z u s a A d m i n i s t r a t i v e S e r v i c e s F i n a n c e D e p a r t m e n t Bo n d i s s u a n c e c o s t s CI T Y O F A Z U S A Ta b l e 4 - C h a n g e s i n F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s La s t T e n F i s c a l Y e a r s ( m o d i f i e d a c c r u a l b a s i s ) Fi s c a l Y e a r 131 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 2012 11,678,993 22,368,712 1,267,725 35,315,430 Source: City of Azusa Light & Water Department Type of Customer City of Azusa Table 5 - Light Department Electricity Sold by Type of Customer Last Ten Fiscal Years 132 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 2004 3.18 0.0966 0.1239 2005 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 2007 3.34 0.1014 0.1301 2008 3.49 0.1061 0.1360 2009 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 2011 3.81 0.1200 0.1500 2012 3.81 0.1160 0.1487 NOTE: Source: City of Azusa Light & Water Department Rates are based on residential meter, which is the standard household meter size. There is an additional charge for excess-use rate above normal demand. City of Azusa Table 6 - Electricity Rates Last Ten Fiscal Years 133 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t C u s t o m e r : Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s AP U F o u n d a t i o n 1, 6 4 9 , 7 9 3 $ 5. 4 0 4 % 1, 6 8 6 , 2 7 8 $ 5. 4 8 4 % 1, 9 0 7 , 7 9 2 $ 6. 2 4 3 % 2, 1 0 4 , 0 1 8 $ 6. 4 0 9 % 1, 7 4 1 , 0 2 4 $ 4. 9 3 0 % Ar c h c o m T e c h n o l o g y - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 22 3 , 3 8 3 0. 6 3 3 % Ar t i s a n S c r e e n P r o c e s s - 0. 0 0 0 % 24 4 , 3 5 3 0. 7 9 5 % 28 9 , 8 0 8 0. 9 4 8 % 31 9 , 4 5 5 0. 9 7 3 % 30 1 , 3 7 8 0. 8 5 3 % Az u s a U S D 83 3 , 1 1 1 2. 7 2 9 % 85 1 , 0 2 0 2. 7 6 8 % 84 8 , 4 9 4 2. 7 7 7 % 95 4 , 0 4 5 2. 9 0 6 % 89 6 , 3 1 8 2. 5 3 8 % Az u s a W e s t e r n 23 5 , 9 1 5 0. 7 7 3 % 25 9 , 9 7 9 0. 8 4 6 % 18 7 , 3 1 2 0. 6 1 3 % 24 1 , 5 4 2 0. 7 3 6 % 23 2 , 8 2 3 0. 6 5 9 % Bu e n a V i s t a F o o d P r o d - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 31 2 , 8 3 6 0. 9 5 3 % 32 9 , 6 8 7 0. 9 3 4 % Ca l i f o r n i a A m f o r g e C o r p 31 9 , 0 9 8 1. 0 4 5 % 30 0 , 1 8 1 0. 9 7 6 % 24 6 , 8 4 2 0. 8 0 8 % 21 3 , 3 6 7 0. 6 5 0 % 29 5 , 4 4 2 0. 8 3 7 % Ci t y o f A z u s a 1, 1 6 6 , 6 4 2 3. 8 2 1 % 1, 0 5 0 , 8 5 2 3. 4 1 8 % 1, 0 9 9 , 7 3 6 3. 5 9 9 % 1, 1 1 2 , 0 4 7 3. 3 8 7 % 1, 0 4 5 , 3 2 6 2. 9 6 0 % Ci t y o f G l e n d o r a 47 7 , 5 5 6 1. 5 6 4 % 51 4 , 9 0 9 1. 6 7 5 % 63 0 , 2 0 2 2. 0 6 2 % 57 5 , 0 8 9 1. 7 5 2 % 72 , 0 9 8 0. 2 0 4 % Co s t c o W h o l e s a l e C o r p . 56 7 , 6 6 2 1. 8 5 9 % 61 7 , 6 9 8 2. 0 0 9 % 60 5 , 9 1 0 1. 9 8 3 % 61 2 , 6 3 0 1. 8 6 6 % 61 3 , 2 3 0 1. 7 3 6 % Cr i t e r i o n C a t a l y s t & T e c h L P 82 7 , 0 3 5 2. 7 0 9 % 82 3 , 6 0 4 2. 6 7 9 % 87 6 , 8 8 1 2. 8 6 9 % 18 1 , 8 3 2 0. 5 5 4 % - 0. 0 0 0 % Ha n s e n ' s J u i c e s (N a k e d J u i c e ) 25 4 , 5 1 6 0. 8 3 4 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Mo r r i s P a r t n e r s h i p 28 3 , 1 3 5 0. 9 2 7 % 23 4 , 4 1 9 0. 7 6 2 % 24 7 , 1 3 7 0. 8 0 9 % 15 6 , 8 9 8 0. 4 7 8 % 22 6 , 6 8 1 0. 6 4 2 % No r t h r o p G r u m m a n S y s . 48 8 , 5 9 7 1. 6 0 0 % 50 7 , 1 6 8 1. 6 4 9 % 48 5 , 7 6 3 1. 5 9 0 % 50 4 , 4 3 6 1. 5 3 7 % 46 8 , 7 7 4 1. 3 2 7 % Ra i n b i r d C o r p . / C A D i v . 1, 0 8 0 , 7 1 9 3. 5 4 0 % 87 6 , 0 3 4 2. 8 4 9 % 91 3 , 2 0 6 2. 9 8 8 % 93 3 , 7 2 2 2. 8 4 4 % 19 3 , 3 4 2 0. 5 4 7 % S & S F o o d s L L C 1, 2 4 5 , 2 2 5 4. 0 7 9 % 1, 3 1 0 , 3 6 3 4. 2 6 2 % 1, 3 7 7 , 3 8 5 4. 5 0 7 % 1, 4 4 4 , 2 8 1 4. 3 9 9 % 1, 3 8 6 , 1 7 0 3. 9 2 5 % St a t e r B r o s M a r k e t - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 14 5 , 4 8 4 0. 4 1 2 % Ta r g e t C o r p o r a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 30 1 , 7 0 7 0. 8 5 4 % T H M o l d i n g C o r p o r a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 40 1 , 0 7 5 1. 1 3 6 % Th e r m a l R e m e d i a t i o n S o l u t i o n s - 0. 0 0 0 % - 0. 0 0 0 % 18 7 , 8 4 5 0. 6 1 5 % 19 5 , 7 9 8 0. 5 9 6 % 15 4 , 7 9 5 0. 4 3 8 % Ve r i z o n W i r e l e s s I n c - 0. 0 0 0 % 52 8 , 6 3 5 1. 7 1 9 % 54 3 , 6 5 5 1. 7 7 9 % 60 1 , 8 8 2 1. 8 3 3 % 89 4 , 4 9 3 2. 5 3 3 % T o t a l 9, 4 2 9 , 0 0 4 $ 30 . 8 8 4 % 9, 8 0 5 , 4 9 3 $ 31 . 8 9 1 % 10 , 4 4 7 , 9 6 7 $ 34 . 1 8 9 % 10 , 4 6 3 , 8 7 8 $ 31 . 8 7 3 % 9, 9 2 3 , 2 3 0 $ 28 . 0 9 9 % Hi s t o r i c a l i n f o r m a t i o n n o t a v a i l a b l e f o r 1 0 y e a r c o m p a r i s o n . So u r c e : C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t Ci t y o f A z u s a Ta b l e 7 - L a r g e s t E l e c t r i c a l C u s t o m e r s La s t F i v e F i s c a l Y e a r s 134 Last Ten Fiscal Years Type of Customer Fiscal Year Residential Commercial Industrial Total 2003 8,303,545$ 2,951,383$ 1,369,646$ 12,624,574$ 2004 8,866,553 4,169,825 1,509,844 14,546,222 2005 8,455,712 4,022,604 1,354,218 13,832,534 2006 8,084,959 3,147,304 2,274,028 13,506,291 2007 9,145,318 3,260,316 2,697,339 15,102,973 2008 9,218,162 3,155,962 2,360,731 14,734,855 2009 7,740,102 2,770,336 2,551,733 13,062,171 2010 8,932,609 3,082,179 2,630,635 14,645,423 2011 9,626,253 3,859,594 3,114,253 16,600,100 2012 9,904,505 3,967,999 3,327,366 17,199,870 Source: City of Azusa Light & Water Department City of Azusa Table 8 - Water Sold by Type of Customer 135 Fiscal Monthly Rate per Rate per Year Ended Base 0-17 >17 Activity Rate CCF CCF 2003 10.75$ 0.765$ 1.210$ 07/03 10.75 0.765 1.210 08/03-06/04 11.22 0.798 1.260 2005 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 2007 11.56 0.822 1.300 2008 12.50 0.870 1.380 2009 12.50 0.870 1.380 0-12 CCF >12 CCF 2010 14.74 0.871 1.690 2011 17.03 1.007 1.953 2012 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 Last Ten Fiscal Years (1) Rates are based on 3/4"meter, which is the standard household meter size. There is an additional charge for excess- use rate above normal demand. 136 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r C u s t o m e r : Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s AP U F o u n d a t i o n 10 5 , 5 1 4 $ 0. 7 1 6 % 11 9 , 3 2 2 $ 0. 9 1 3 % 13 1 , 2 9 8 $ 0. 8 9 7 % 21 2 , 8 8 0 $ 1. 2 8 2 % 12 6 , 7 3 7 $ 0. 7 3 7 % Az u s a C a r e f r e e A s s o c i a t i o n 42 , 9 1 5 0. 2 9 1 % 44 , 2 5 9 0. 3 3 9 % 43 , 4 2 9 0. 2 9 7 % 52 , 2 8 5 0. 3 1 5 % 65 , 9 8 4 0. 3 8 4 % Az u s a G r e e n s C o u n t r y C l u b 10 5 , 1 0 3 0. 7 1 3 % 11 5 , 0 8 1 0. 8 8 1 % 11 9 , 7 7 1 0. 8 1 8 % 11 4 , 5 9 6 0. 6 9 0 % 13 1 , 8 0 9 0. 7 6 6 % Az u s a U n i f i e d S c h o o l D i s t r i c t 25 2 , 8 3 6 1. 7 1 6 % 29 3 , 4 9 6 2. 2 4 7 % 26 3 , 8 5 2 1. 8 0 2 % 30 4 , 2 6 5 1. 8 3 3 % 28 5 , 8 8 3 1. 6 6 2 % Az u s a W e s t e r n 22 6 , 8 9 6 1. 5 4 0 % 41 9 , 7 1 4 3. 2 1 3 % 32 8 , 9 8 9 2. 2 4 6 % 24 4 , 5 2 8 1. 4 7 3 % 25 9 , 5 5 5 1. 5 0 9 % Ca l m a t S i t e # 1 0 5 5 - A 27 , 1 4 1 0. 1 8 4 % - 0. 0 0 0 % - 0. 0 0 0 % 54 , 4 3 9 0. 3 2 8 % 36 , 3 6 8 0. 2 1 1 % Ci t r u s C o l l e g e 47 , 8 7 7 0. 3 2 5 % 44 , 0 8 8 0. 3 3 8 % 43 , 1 2 3 0. 2 9 4 % 45 , 5 0 7 0. 2 7 4 % 47 , 3 4 7 0. 2 7 5 % Ci t y o f A z u s a 78 , 2 6 3 0. 5 3 1 % 86 , 3 9 3 0. 6 6 1 % 94 , 9 5 5 0. 6 4 8 % 14 1 , 4 5 9 0. 8 5 2 % 13 7 , 7 3 0 0. 8 0 1 % Co v i n a V a l l e y U S D 78 , 1 6 2 0. 5 3 0 % 84 , 4 8 7 0. 6 4 7 % 74 , 2 3 7 0. 5 0 7 % 42 , 6 4 4 0. 2 5 7 % 11 0 , 5 8 7 0. 6 4 3 % He c t o r P e r a l e s - 0. 0 0 0 % - 0. 0 0 0 % 28 0 , 7 8 5 1. 9 1 7 % - 0. 0 0 0 % - 0. 0 0 0 % Lo v i n O v e n - 0. 0 0 0 % 43 , 5 3 7 0. 3 3 3 % - 0. 0 0 0 % 47 , 0 9 9 0. 2 8 4 % 52 , 2 5 0 0. 3 0 4 % Mi k e N i j j a r - 0 6 0 - 0. 0 0 0 % - 0. 0 0 0 % 71 , 2 1 7 0. 4 8 6 % - 0. 0 0 0 % 79 , 6 7 6 0. 4 6 3 % Mi l l e r B r e w e r y 97 4 , 4 2 1 6. 6 1 3 % 1, 3 7 1 , 2 7 8 10 . 4 9 8 % 1, 2 8 0 , 9 7 8 8. 7 4 7 % 1, 1 4 9 , 3 3 1 6. 9 2 4 % 1, 1 2 6 , 3 8 7 6. 5 4 9 % Mo u n t a i n C o v e - 0. 0 0 0 % - 0. 0 0 0 % 72 , 7 0 7 0. 4 9 6 % - 0. 0 0 0 % 68 , 1 3 8 0. 3 9 6 % NC I - 0. 0 0 0 % 48 , 4 3 2 0. 3 7 1 % 56 , 3 8 9 0. 3 8 5 % 64 , 3 6 8 0. 3 8 8 % 68 , 2 5 3 0. 3 9 7 % Re a d y P a c 45 0 , 5 4 7 3. 0 5 8 % 37 1 , 8 2 7 2. 8 4 7 % 43 1 , 6 4 9 2. 9 4 7 % 49 9 , 3 5 8 3. 0 0 8 % 53 3 , 1 0 5 3. 0 9 9 % S& S F o o d s L L C 76 , 1 6 0 0. 5 1 7 % 69 , 2 0 7 0. 5 3 0 % 83 , 8 9 6 0. 5 7 3 % 11 3 , 3 4 3 0. 6 8 3 % 12 2 , 6 6 6 0. 7 1 3 % So u t h e r n C a l i f o r n i a E d i s o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 34 , 9 8 3 0. 2 0 3 % Vi l l a A z u s a A s s o c i a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 59 , 8 9 8 0. 3 4 8 % T o t a l 2, 4 6 5 , 8 3 5 $ 16 . 7 3 5 % 3, 1 1 1 , 1 2 1 $ 23 . 8 1 8 % 3, 3 7 7 , 2 7 6 $ 23 . 0 6 0 % 3, 0 8 6 , 1 0 2 $ 18 . 5 9 1 % 3, 3 4 7 , 3 5 6 $ 19 . 4 6 2 % Hi s t o r i c a l i n f o r m a t i o n n o t a v a i l a b l e f o r 1 0 y e a r c o m p a r i s o n . So u r c e : C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t Ci t y o f A z u s a Ta b l e 1 0 - L a r g e s t W a t e r C u s t o m e r s La s t F i v e F i s c a l Y e a r s 137 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% 2012 2,233,298,820 64,623,628 2,297,922,448 3,049,310,815 192,937,613 3,242,248,428 (2) (1) Exempt assessed values are not included in assessed value. Exemptions are netted directly against the individual property categories. (2) Data not available. NOTE: Source: County of Los Angeles Auditor-Controller Tax Division In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1%based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner.At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation date shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described. CITY OF AZUSA Table 11 - Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousand of dollars) Redevelopment/Successor AgencyCity 138 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Ci t y D i r e c t R a t e s : Ge n e r a l C i t y 0. 1 5 1 0 3 $ 0. 1 5 1 0 3 $ 0. 1 5 1 0 3 $ 0. 1 5 1 0 3 $ 0. 1 5 1 0 3 $ 0. 1 5 1 0 3 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ (1 ) Re d e v e l o p m e n t A g e n c y 1. 0 6 6 4 0 1. 0 5 9 4 0 1. 0 5 5 6 0 1. 0 2 0 8 0 1. 0 4 2 1 0 1. 0 2 9 7 6 1. 0 1 8 0 0 1. 0 1 8 0 0 1. 0 1 8 0 0 (1 ) To t a l D i r e c t R a t e 0. 3 5 5 6 3 0. 3 5 9 0 8 0. 3 6 4 0 1 0. 3 4 3 9 9 0. 3 4 3 9 5 0. 3 2 3 9 5 0. 3 3 3 1 9 0. 3 3 5 3 4 0. 3 4 2 2 8 (1 ) Ov e r l a p p i n g R a t e s : Az u s a U n i f i e d S c h o o l D i s t r i c t 0. 2 9 6 9 4 0. 2 8 2 2 3 0. 2 7 6 9 0 0. 2 6 6 1 1 0. 2 7 2 5 1 0. 2 7 2 1 8 0. 2 2 9 6 3 0. 2 3 2 6 9 0. 2 5 0 5 5 (1 ) Ch i l d r e n s C e n t e r F u n d 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 0. 0 0 0 6 4 (1 ) Ch i l d r e n s I n s t i t u t i o n a l T u i t i o n F u n d 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 0. 0 0 2 7 8 (1 ) Ci t r u s C o m m u n i t y C o l l e g e 0. 0 2 4 5 8 0. 0 2 4 5 8 0. 0 2 4 5 8 0. 0 2 4 5 8 0. 0 2 4 5 8 0. 0 2 4 6 0 0. 0 0 6 0 2 0. 0 2 4 6 0 0. 0 2 4 6 0 (1 ) Ed u c a t i o n a l A u g F u n d I m p o u n d 0. 1 7 0 7 5 0. 1 7 0 7 5 0. 1 7 0 7 5 0. 1 7 0 7 5 0. 1 7 0 7 5 0. 1 7 0 7 0 0. 1 7 0 7 0 0. 1 7 0 7 0 0. 1 7 0 7 0 (1 ) Ed u c a t i o n a l R e v e n u e A u g m e n t a t i o n F u n d 0. 0 7 5 7 9 0. 0 7 5 7 9 0. 0 7 5 7 9 0. 0 7 5 7 9 0. 0 7 5 7 9 0. 0 7 7 9 0 0. 0 7 7 9 0 0. 0 7 7 9 0 0. 0 7 7 9 0 (1 ) Lo s A n g e l e s C o u n t y 0. 3 5 6 4 4 0. 3 5 5 9 9 0. 3 5 5 6 9 0. 3 5 5 3 8 0. 3 5 5 2 4 0. 3 5 4 2 1 0. 3 5 4 2 1 0. 3 5 2 5 0 0. 3 5 2 5 0 (1 ) Ci t r u s C o m m u n i t y C o l l e g e D i s t r i c t - - 0. 0 2 5 8 5 0. 0 1 7 6 3 0. 0 0 3 5 6 0. 0 1 6 1 1 0. 0 2 4 6 0 0. 0 1 0 2 7 0. 0 2 5 1 6 (1 ) Me t r o p o l i t a n W a t e r D i s t r i c t 0. 0 4 9 3 7 0. 0 4 7 3 7 0. 0 4 5 3 7 0. 0 4 5 3 7 0. 0 4 5 3 7 0. 0 2 5 4 0 0. 0 6 1 7 8 0. 0 5 8 8 0 0. 0 5 8 2 0 (1 ) Ot h e r 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 0. 0 0 0 9 8 (1 ) To t a l T a x R a t e 1. 1 2 9 3 0 $ 1. 1 1 2 1 4 $ 1. 1 3 0 3 6 $ 1. 1 1 1 0 4 $ 1. 1 0 3 2 3 $ 1. 0 9 6 5 3 $ 1. 0 7 8 4 5 $ 1. 0 8 1 0 7 $ 1. 1 1 3 2 2 $ (1 ) (1 ) D a t a n o t a v a i l a b l e . In 1 9 7 8 , C a l i f o r n i a v o t e r s p a s s e d P r o p o s i t i o n 1 3 w h i c h s e t t h e p r o p e r t y t a x r a t e a t a 1 . 0 0 % f i x e d a m o u n t . So u r c e : L . A . C o u n t y A s s e s s o r T a x R a t e T a b l e A r e a 0 2 0 4 5 Th i s 1 . 0 0 % is sh a r e d by a l l ta x i n g a g e n c i e s f o r w h i c h t h e s u b j e c t p r o p e r t y r e s i d e s w i t h i n . In ad d i t i o n to th e 1 . 0 0 % f i x e d am o u n t , p r o p e r t y o w n e r s ar e ch a r g e d t a x e s as a p e r c e n t a g e of as s e s s e d p r o p e r t y v a l u e s f o r t h e p a y m e n t of a n y vo t e r ap p r o v e d b o n d s . Ge n e r a l fu n d t a x r a t e s ar e re p r e s e n t a t i v e an d ba s e d up o n th e d i r e c t an d ov e r l a p p i n g r a t e s f o r t h e l a r g e s t Ge n e r a l Fu n d ta x r a t e a r e a b y n e t t a x a b l e v a l u e . To t a l D i r e c t R a t e is th e w e i g h t e d a v e r a g e of a l l in d i v i d u a l d i r e c t r a t e s ap p l i e d b y th e C i t y . T h e D i r e c t R a t e p e r c e n t a g e s pr e s e n t e d i n t h e c o l u m n s a b o v e i s n o t t h e s u m o f t h e G e n e r a l C i t y R a t e a n d t h e R e d e v e l o p m e n t A g e n c y R a t e ( R D A ) . RD A ra t e is ba s e d on th e l a r g e s t RD A ta x r a t e ar e a a n d in c l u d e s on l y ra t e s f r o m i n d e b t e d n e s s a d o p t e d pr i o r to 19 8 9 p e r Ca l i f o r n i a S t a t e s t a t u t e . R D A d i r e c t a n d o v e r l a p p i n g r a t e s a r e a p p l i e d o n l y t o t h e i n c r e m e n t a l p r o p e r t y v a l u e s . CI T Y O F A Z U S A Ta b l e 1 2 - D i r e c t a n d O v e r l a p p i n g P r o p e r t y T a x R a t e s (r a t e p e r $ 1 0 0 o f a s s e s s e d v a l u e ) La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 139 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f To t a l C i t y To t a l C i t y C i t y C i t y C i t y Ta x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e T a x a b l e As s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d Ta x p a y e r : Va l u e Va l u e V a l u e Va l u e Va l u e Va l u e Va l u e Va l u e Va l u e Va l u e Az u s a L a n d P a r t n e r s L L C 17 2 , 8 1 5 $ 1. 6 6 % 1 3 3 , 1 5 6 , 4 6 9 $ 3. 7 5 % 1 1 8 , 9 9 7 , 0 0 8 $ 3. 3 5 % - $ 0 . 0 0 % - $ 0 . 0 0 % Az u s a P a c i f i c U n i v e r s i t y 29 8 , 1 9 4 2. 8 6 % 1 0 4 , 5 5 3 , 7 7 5 2. 9 4 % 2 1 5 , 2 0 8 , 3 4 4 6. 0 6 % 3 6 , 4 3 2 , 8 0 1 1. 1 2 % 3 4 , 1 7 5 , 1 6 5 1. 0 7 % Ci t r u s C r o s s i n g P r o p e r t i e s F e e - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % 3 2 , 1 2 2 , 9 6 8 1. 0 0 % Ci t y V i e w R o s e d a l e 9 8 L P - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % 3 0 , 8 4 2 , 1 4 4 0. 9 5 % - 0 . 0 0 % Ci t y v i e w C i t r u s C r o s s i n g - 0. 0 0 % - 0. 0 0 % 2 6 , 8 9 1 , 7 8 2 0. 7 6 % 2 6 , 8 5 1 , 2 6 8 0. 8 3 % - 0 . 0 0 % Co a s t a l P a c i f i c G l e n L L C - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % Co l o n y P a r k A z u s a L L C - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % Co s t c o W h o l e s a l e C o r p o r a t i o n 14 8 , 4 4 0 1. 4 2 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % 1 9 , 3 0 3 , 9 9 6 0. 6 0 % Cr i t e r i o n C a t a l y s t C o m p a n y L P 15 6 , 1 3 7 1. 5 0 % 1 9 , 5 2 9 , 8 5 4 0. 5 5 % 2 1 , 1 3 4 , 6 3 9 0. 6 0 % 2 0 , 6 1 2 , 2 2 0 0. 6 4 % - 0 . 0 0 % Ex c h a n g e E l S e g u n d o - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % No r t h r o p G r u m m a n S y s t e m s C o r p o r a t i o n 5 6 0 , 3 1 3 5. 3 7 % 1 1 4 , 0 6 2 , 0 7 4 3. 2 1 % 1 1 4 , 4 8 8 , 9 4 6 3. 2 3 % 1 1 3 , 6 1 4 , 8 0 2 3. 5 0 % 1 1 1 , 8 0 7 , 2 4 8 3. 5 0 % On t a r i o V o g e l 10 6 , 2 4 4 1. 0 2 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % PL C M a p l e t o n L L C - 0. 0 0 % 2 1 , 9 6 4 , 0 4 8 0. 6 2 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % PP F I n d u s t r i a l 8 2 3 8 t h S t r e e t 28 5 , 3 6 7 2. 7 4 % 2 9 , 8 4 8 , 0 5 9 0. 8 4 % 3 0 , 4 4 5 , 0 1 6 0. 8 6 % 3 0 , 3 7 2 , 8 5 6 0. 9 4 % 3 0 , 7 2 7 , 5 0 0 0. 9 6 % Ra i n b i r d C o r p / C A D i v . - 0. 0 0 % 4 4 , 5 2 5 , 0 2 4 1. 2 5 % 4 4 , 8 1 3 , 6 0 6 1. 2 6 % 3 8 , 6 1 4 , 4 6 7 1. 1 9 % 4 6 , 4 2 4 , 3 5 3 1. 4 5 % RC P r o p e r t i e s V I L L C - 0. 0 0 % 5 3 , 7 6 5 , 7 5 3 1. 5 1 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % Re i c h h o l d I n c 10 6 , 1 2 4 1. 0 2 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % Ro s e d a l e L a n d P a r t n e r s I I L L C - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % 8 8 , 8 7 3 , 6 6 7 2. 7 4 % 4 1 , 7 9 8 , 0 0 0 1. 3 1 % Sa m M e n l o T r u s t - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % 1 8 , 1 1 8 , 7 3 0 0. 5 7 % S & S F o o d s L L C 11 6 , 7 3 5 1. 1 2 % 1 9 , 0 5 2 , 3 7 1 0. 5 4 % 1 9 , 6 8 6 , 7 4 8 0. 5 5 % 1 9 , 3 5 0 , 0 7 9 0. 6 0 % 2 0 , 8 4 2 , 1 1 8 0. 6 5 % SC A z u s a I n d u s t r i a l C e n t e r C o r p - 0. 0 0 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % So o n C h o e K a e 96 , 4 3 7 0. 9 2 % - 0. 0 0 % - 0. 0 0 % - 0 . 0 0 % - 0 . 0 0 % VP M S o l d a n o S e n i o r V i l l a g e L P - 0. 0 0 % - 0. 0 0 % 1 9 , 1 1 9 , 4 8 3 0. 5 4 % - 0 . 0 0 % - 0 . 0 0 % Wi l l i a m L y o n H o m e s I n c - 0. 0 0 % 2 0 , 7 6 9 , 6 8 9 0. 5 8 % 2 1 , 1 5 7 , 2 3 3 0. 6 0 % 2 5 , 2 2 5 , 5 4 7 0. 7 8 % 2 5 , 2 2 3 , 6 4 0 0. 7 9 % 2, 0 4 6 , 8 0 7 $ 19 . 6 3 % 5 6 1 , 2 2 7 , 1 1 6 $ 15 . 8 0 % 6 3 1 , 9 4 2 , 8 0 5 $ 17 . 8 1 % 4 3 0 , 7 8 9 , 8 5 1 $ 13 . 2 9 % 3 8 0 , 5 4 3 , 7 1 8 $ 11 . 9 0 % Th e a m o u n t s s h o w n a b o v e i n c l u d e a s s e s s e d v a l u e d a t a f o r b o t h t h e C i t y a n d t h e R e d e v e l o p m e n t A g e n c y . So u r c e : H d L C o r e n & C o n e , L o s A n g e l e s C o u n t y A s s e s s o r In f o r m a t i o n i s n o t a v a i l a b l e f o r a l l y e a r s Ci t y o f A z u s a Ta b l e 1 3 - P r i n c i p a l P r o p e r t y T a x P a y e r s ( T o p T e n ) La s t F i v e F i s c a l Y e a r s 140 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% 2012 3,447,405 3,192,697 92.6%16,662 3,209,360 93.1% Source: County of Los Angeles Auditor-Controller and City of Azusa Finance Department Table 14 - Property Tax Levies and Collections CITY OF AZUSA Last Ten Fiscal Years 141 Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - t y p e A c t i v i t i e s Fi s c a l Y e a r Ce r t i f i c a t e Ta x Ta x a b l e To t a l Ce r t i f i c a t e To t a l To t a l Pe r c e n t a g e o f Pe r c e n t a g e o f En d e d of Al l o c a t i o n Pe n s i o n Go v e r n m e n t a l of Re v e n u e Bu s i n e s s - t y p e Pr i m a r y As s e s s e d Pe r s o n a l Ju n e 3 0 Lo a n s Pa r t i c i p a t i o n Bo n d s ( 1 ) Fu n d i n g B o n d s ( 2 ) Ac t i v i t i e s Lo a n s (7 ) Pa r t i c i p a t i o n ( 3 ) Bo n d s (4 ) Ac t i v i t i e s Go v e r n m e n t a l Va l u e s In c o m e 20 0 3 9, 5 2 9 , 6 0 0 $ 4, 5 6 5 , 0 0 0 $ 16 , 2 8 5 , 0 0 0 $ - $ 30 , 3 7 9 , 6 0 0 $ 1, 1 0 3 , 9 9 9 $ 2, 5 5 5 , 0 0 0 $ 20 , 1 3 0 , 0 0 0 $ 23 , 7 8 8 , 9 9 9 $ 54 , 1 6 8 , 5 9 9 $ 2. 7 7 % 3. 6 5 % 20 0 4 9, 1 5 6 , 7 6 0 4, 8 2 5 , 0 0 0 17 , 0 8 0 , 0 0 0 - 31 , 0 6 1 , 7 6 0 87 8 , 2 9 6 34 , 8 4 0 , 0 0 0 - 35 , 7 1 8 , 2 9 6 66 , 7 8 0 , 0 5 6 3. 0 8 % 4. 1 8 % 20 0 5 9, 0 4 5 , 3 1 7 4, 5 2 5 , 0 0 0 25 , 3 6 6 , 4 1 6 - 38 , 9 3 6 , 7 3 3 65 2 , 9 4 4 33 , 5 7 0 , 0 0 0 - 34 , 2 2 2 , 9 4 4 73 , 1 5 9 , 6 7 7 3. 1 7 % (5 ) 20 0 6 9, 0 0 2 , 3 5 5 4, 3 2 5 , 0 0 0 24 , 8 2 4 , 5 0 6 - 38 , 1 5 1 , 8 6 1 - 32 , 3 5 5 , 0 0 0 - 32 , 3 5 5 , 0 0 0 70 , 5 0 6 , 8 6 1 2. 7 3 % (5 ) 20 0 7 8, 8 9 9 , 0 6 6 4, 1 2 0 , 0 0 0 24 , 2 7 1 , 2 0 6 - 37 , 2 9 0 , 2 7 2 - 31 , 1 1 0 , 0 0 0 54 , 8 5 0 , 0 0 0 85 , 9 6 0 , 0 0 0 12 3 , 2 5 0 , 2 7 2 3. 8 2 % (5 ) 20 0 8 8, 8 7 9 , 2 4 7 3, 9 1 0 , 0 0 0 39 , 5 4 6 , 6 9 8 - 52 , 3 3 5 , 9 4 5 - 29 , 8 2 5 , 0 0 0 54 , 8 5 0 , 0 0 0 84 , 6 7 5 , 0 0 0 13 7 , 0 1 0 , 9 4 5 2. 2 3 % (5 ) 20 0 9 8, 9 7 4 , 1 7 2 3, 6 9 5 , 0 0 0 57 , 0 5 6 , 2 0 1 7, 2 1 5 , 0 0 0 76 , 9 4 0 , 3 7 3 - 28 , 5 0 0 , 0 0 0 54 , 8 5 0 , 0 0 0 83 , 3 5 0 , 0 0 0 16 0 , 2 9 0 , 3 7 3 2. 6 3 % (5 ) 20 1 0 9, 3 6 6 , 0 3 8 3, 4 8 0 , 0 0 0 55 , 8 1 4 , 8 8 9 6, 7 3 5 , 0 0 0 75 , 3 9 5 , 9 2 7 - 27 , 1 2 5 , 0 0 0 54 , 5 7 0 , 0 0 0 81 , 6 9 5 , 0 0 0 15 7 , 0 9 0 , 9 2 7 2. 8 4 % (5 ) 20 1 1 9, 6 8 5 , 0 1 5 3, 2 5 5 , 0 0 0 54 , 7 6 8 , 0 1 4 6, 1 8 0 , 0 0 0 73 , 8 8 8 , 0 2 9 - 25 , 6 9 0 , 0 0 0 54 , 2 7 5 , 0 0 0 79 , 9 6 5 , 0 0 0 15 3 , 8 5 3 , 0 2 9 2. 8 2 % 18 . 7 0 % 20 1 2 10 , 0 0 5 , 4 6 1 3, 0 2 5 , 0 0 0 - (6 ) 5, 5 5 5 , 0 0 0 18 , 5 8 5 , 4 6 1 5, 6 3 0 , 0 0 0 3, 0 7 0 , 0 0 0 68 , 5 0 0 , 0 0 0 77 , 2 0 0 , 0 0 0 95 , 7 8 5 , 4 6 1 1. 7 3 % 10 . 7 3 % (1 ) Th e R e d e v e l o p m e n t A g e n c y i s s u e d $ 9 , 0 5 1 , 4 1 6 o f n e w T A B S i n 2 0 0 5 , $ 1 5 , 7 8 0 , 0 0 0 2 0 0 7 S e r i e s A M e r g e d P r o j e c t A r e a T A B S a n d $ 4 , 7 9 0 , 0 0 0 S e r i e s B M e r g e d P r o j e c t a r e a T A B S , $ 6 , 7 1 5 , 0 0 0 2 0 0 8 Se r i e s A M e r g e s P r o j e c t A r e a T A B S , a n d $ 1 1 , 5 8 0 , 0 0 0 2 0 0 8 H o u s i n g T a x A l l o c a t i o n B o n d s S e r i e s B . (2 ) Th e C i t y i s s u e d $ 7 , 2 1 5 , 0 0 0 o f t a x a b l e p e n s i o n f u n d i n g b o n d s i n 2 0 0 8 (3 ) Th e L i g h t F u n d i s s u e d $ 1 1 , 9 9 5 , 0 0 0 o f n e w C e r t i f i c a t e s o f P a r t i c i p a t i o n i n 2 0 0 3 ; i s s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 5 , 8 2 0 , 0 0 0 i n 2 0 1 2 . (4 ) Th e W a t e r F u n d r e p l a c e d i t s R e v e n u e B o n d w i t h C e r t i f i c a t e s o f P a r t i c i p a t i o n i n D e c e m b e r 2 0 0 3 ; i s s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 8 , 7 1 5 , 0 0 0 i n 2 0 1 2 ; (5 ) In f o r m a t i o n n o t a v a i l a b l e (6 ) Th e R e d e v e l o p m e n t A g e n c y d i s s o l u t i o n b y t h e S t a t e o f C a l i f o r n i a c a u s e d t h e t a x a l l o c a t i o n b o n d s t o b e t r a n s f e r r e d t o t h e S u c c e s s o r A g e n c y a n d i s a f i d u c i a r y f u n d . (7 ) Th e S e w e r F u n d a c q u i r e d a n i n s t a l l m e n t s a l e a g r e e m e n t l o a n o f $ 5 , 6 3 0 , 0 0 0 i n 2 0 1 1 t h a t i n c l u d e s t h e r e f u n d i n g o f 1 9 9 4 C O P s . So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 1 5 - R a t i o s o f O u t s t a n d i n g D e b t b y T y p e La s t T e n F i s c a l Y e a r s 142 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 2012 3,025,000 - 3,025,000 0.05%65 Source: City of Azusa Finance Department CITY OF AZUSA Table 16 - Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years 143 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$ 0.105 112,623$ 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 4,702,963 Mount San Antonio Community College District 2001 Series A 1,130,000 0.024 271 Mount San Antonio Community College District Series B 2004 8,080,000 0.024 1,939 Mount San Antonio Community College District 05 Ref BD 55,835,843 0.024 13,401 Mount San Antonio Community College District 01Series C 2006 79,461,712 0.024 19,071 Mount San Antonio Community College DS 2001, 2008 Series D 24,602,430 0.024 5,905 Azusa Unified School District 2002 Bonds 23,853,763 63.985 15,262,830 Azusa Unified School District 2002 Series 2007 42,863,943 63.985 27,426,494 Covina Valley Unified School District 2001 Series A 14,775,000 0.224 33,096 Covina Valley Unified School District 2001 Series B 21,135,713 0.224 47,344 Covina Valley Unified School District 2006 Series 2006 45,010,000 0.224 100,822 Covina Valley Unified School District 2006,2007 Series B 17,359,117 0.224 38,884 Duarte Unified School District 1998 Series B 6,112,981 0.633 38,714 Duarte Unified School District 1998 Series C 5,369,717 0.633 34,006 Duarte Unified School District 1998 Series D 6,044,534 0.633 38,280 Duarte Unified School District 1998 Series E 13,827,314 0.633 87,568 Duarte Unified School District Refunding 1998, 2010 Series A 2,670,000 0.633 16,909 Total Overlapping Debt 56,044,831 Total Direct and Overlapping Debt 65,479,831$ 2011/2012 Assessed Valuation: $2,297,922,448 after deducting $944,325,980 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 *June 30, 2012 data not available City of Azusa Table 17 - Direct and Overlapping Debt 6/30/2011* 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. 144 Fi s c a l Y e a r 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 As s e s s e d v a l u a t i o n 1, 3 4 6 , 3 4 7 , 9 8 7 $ 1, 4 9 5 , 8 4 2 , 7 8 7 $ 1, 5 6 4 , 8 6 7 , 0 0 8 $ 1, 7 8 2 , 3 7 8 , 1 8 4 $ 2, 3 7 5 , 5 5 4 , 7 7 8 $ 2, 5 8 8 , 9 5 9 , 0 2 5 $ 2, 5 4 8 , 4 8 2 , 0 7 7 $ 2, 2 9 2 , 8 7 0 , 4 4 0 $ 2, 2 5 2 , 6 8 7 , 4 5 1 $ 2, 2 9 7 , 9 2 2 , 4 4 8 $ Co n v e r s i o n p e r c e n t a g e 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % Ad j u s t e d a s s e s s e d v a l u a t i o n 33 6 , 5 8 6 , 9 9 7 37 3 , 9 6 0 , 6 9 7 39 1 , 2 1 6 , 7 5 2 44 5 , 5 9 4 , 5 4 6 59 3 , 8 8 8 , 6 9 5 64 7 , 2 3 9 , 7 5 6 63 7 , 1 2 0 , 5 1 9 57 3 , 2 1 7 , 6 1 0 56 3 , 1 7 1 , 8 6 3 57 4 , 4 8 0 , 6 1 2 De b t l i m i t p e r c e n t a g e 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % Le g a l d e b t l i m i t 50 , 4 8 8 , 0 5 0 56 , 0 9 4 , 1 0 5 58 , 6 8 2 , 5 1 3 66 , 8 3 9 , 1 8 2 89 , 0 8 3 , 3 0 4 97 , 0 8 5 , 9 6 3 95 , 5 6 8 , 0 7 8 85 , 9 8 2 , 6 4 2 84 , 4 7 5 , 7 7 9 86 , 1 7 2 , 0 9 2 Am o u n t o f d e b t a p p l i c a b l e t o d e b t l i m i t (1 ) - - - - - - - - - - Le g a l d e b t m a r g i n 50 , 4 8 8 , 0 5 0 $ 56 , 0 9 4 , 1 0 5 $ 58 , 6 8 2 , 5 1 3 $ 66 , 8 3 9 , 1 8 2 $ 89 , 0 8 3 , 3 0 4 $ 97 , 0 8 5 , 9 6 3 $ 95 , 5 6 8 , 0 7 8 $ 85 , 9 8 2 , 6 4 2 $ 84 , 4 7 5 , 7 7 9 $ 86 , 1 7 2 , 0 9 2 $ (1 ) So u r c e : C i t y o f A z u s a - F i n a n c e D e p a r t m e n t Ci t y o f A z u s a Ta b l e 1 8 - L e g a l D e b t M a r g i n I n f o r m a t i o n La s t T e n F i s c a l Y e a r s To t a l B o n d e d de b t is s u e d by th e C i t y , e x c l u d i n g c e r t i f i c a t e s of pa r t i c i p a t i o n , t a x al l o c a t i o n bo n d s , sp e c i a l a s s i g n m e n t bo n d s , re v e n u e bo n d s pa y a b l e f r o m en t e r p r i s e f u n d s , an d pl e d g e m o r t g a g e r e v e n u e s an d re v e n u e bo n d s is s u e d by en t i t i e s o t h e r t h a n t h e C i t y o f A z u s a . 145 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 2012 (1)20,176,555 16,413,185 3,763,370 1,180,000 3,325,671 4,505,671 0.84 (1)2003 to 2011 Certificates of Participation bonds refunded in 2012 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 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 2012 41,100,126 35,401,103 5,699,023 505,000 443,151 948,151 6.01 (1)Excludes interest and depreciation expense (2)Certificates of Participation Established December 18, 2003; Series B refunded in 2012 Source: City of Azusa Administrative Services-Finance Department CITY OF AZUSA Table 19 - Pledged Revenue Coverage Last Nine Fiscal Years REVENUE BONDS - WATER FUND(1) CERTIFICATES OF PARTICIPATION AND REVENUE BONDS- ELECTRIC FUND (2) 146 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 2012 2,225,335 1,888,871 336,464 0 33,110 33,110 10.16 (1)Excludes interest and depreciation expense Source: City of Azusa Finance Department REVENUE BONDS - SEWER FUND CITY OF AZUSA Table 19 - Pledged Revenue Coverage (continued) Last Ten Fiscal Years 147 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 2012 5,454,067 1,180,000 2,978,211 4,158,211 1.31 (1)$11,580,000 2003 Bonds were issued to refund the $10,610,000 1994 Bonds. (2) (3) (4) Source: City of Azusa 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 $9,022,800 of new Tax Allocation Bonds in 2005. CITY OF AZUSA Table 20 - Pledged Revenue Coverage Tax Allocation Bonds - Redevelopment Agency (Successor Agency) Last Ten Fiscal Years 148 Fiscal Year Per Capita Ended City County Personal Personal Unemployment June 30 Population (1)Population (1)Income Income (3)Rate (4) 2003 47,150 9,979,600 1,482,961,800$ 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)822,525,165 (6)17,715 13.7% 2012 46,678 9,857,567 (3)892,436,682 (6)19,119 (7)12.9% 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 (6) Estimated using Population x Per Capita Income (7) U. S. Department of Commerce Census Bureau CITY OF AZUSA Table 21 - Demographic and Economic Statistics Last Ten Fiscal Years 149 2012 2011 (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%(3)1,600 1,600 2. Northrop Grumman (3)0.00%(3)1,100 1,100 3. Azusa Pacific University (3)0.00%(3)900 900 4. City of Azusa (3)0.00%(3)522 522 5. Costco (formerly Price/Costco) (3)0.00%(3)311 311 6. Berger Bros. (3)0.00%(3)300 300 7. Pacific Precision Metals (3)0.00%(3)250 250 8. Tru Wood Products (3)0.00%(3)160 160 9. Wynn Oil Company (3)0.00%(3)150 150 10. Rain Bird (3)0.00%(3)132 132 11. California Amforge (3)0.00%(3)106 106 12. Vulcan (3)0.00%(3)100 100 13. Naked Juice (3)0.00%(3)75 75 14. Morris National Candy (3)0.00%(3)70 70 15. Physician's Formula (3)0.00%(3)70 70 16. Heppner Hardwood (3)0.00%(3)63 63 17. Trek Industries (3)0.00%(3)37 37 18. Cee-Jay Research and Sales (3)0.00%(3)- - 19. Monrovia Nursery (3)0.00%(3)- - 20. ABCO Insulation (3)0.00%(3)- - 21. Andre Landscape Services (3)0.00%(3)- - 22. Wynn's (3)0.00%(3)- - 23. Artisan Screen (3)0.00%(3)- - 24. Gale Banks Engineering (3)0.00%(3)- - 25. Stanley Steemer Carpet Cleaner (3)0.00%(3)- - 26. Buena Vista Food Products (3)0.00%(3)- - 27. Astro Company (3)0.00%(3)- - 28. Alliance Environmental Group (3)0.00%(3)- - 29. Magparts (3)0.00%(3)- - Total of Top Employers - 0.00% - Total Employees in City (3)(3) (1)Azusa Chamber of Commerce website (2)HdL Coren & Cone, Info Group (3)data not available City of Azusa Table 22 - Principal Employers Last Five Fiscal Years 150 by F u n c t i o n Fu n c t i o n 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Ge n e r a l g o v e r n m e n t 61 . 9 6 1 61 . 5 6 0 40 . 7 9 1 43 . 7 4 5 42 . 2 3 6 44 . 6 9 8 50 . 3 4 8 49 . 2 6 1 48 . 4 1 1 30 . 9 3 4 Pu b l i c s a f e t y 96 . 5 3 8 94 . 6 6 3 93 . 4 0 6 91 . 9 7 8 93 . 8 0 0 96 . 5 3 0 99 . 0 3 5 98 . 9 4 5 97 . 3 9 5 88 . 7 5 0 Co m m u n i t y d e v e l o p m e n t 18 . 7 6 5 19 . 1 8 1 17 . 2 2 5 13 . 5 0 2 14 . 9 2 7 15 . 4 4 1 15 . 9 8 5 16 . 3 7 6 16 . 1 9 6 14 . 1 9 7 Pa r k s a n d r e c r e a t i o n 61 . 4 9 3 47 . 5 5 8 58 . 2 5 0 55 . 3 5 4 56 . 1 6 9 48 . 2 1 1 51 . 6 5 0 55 . 3 0 6 56 . 5 5 7 48 . 0 2 3 Pu b l i c w o r k s 25 . 1 8 0 27 . 9 3 0 25 . 8 4 5 20 . 8 0 0 21 . 8 8 4 23 . 1 3 2 31 . 1 1 5 31 . 1 1 5 31 . 1 1 5 30 . 0 5 8 Wa t e r 41 . 6 7 0 37 . 4 2 0 37 . 6 1 0 39 . 2 2 0 36 . 4 2 5 36 . 3 5 0 44 . 4 2 5 44 . 0 2 5 43 . 7 7 5 42 . 6 2 5 El e c t r i c 31 . 1 3 0 29 . 3 8 0 28 . 4 9 0 30 . 2 8 0 31 . 4 2 5 32 . 3 5 0 36 . 1 2 5 37 . 7 2 5 36 . 4 7 5 37 . 6 2 5 Se w e r / W a s t e w a t e r 4. 3 2 0 3. 8 2 0 4. 0 8 0 6. 2 5 0 6. 0 0 0 6. 0 0 0 10 . 0 0 0 10 . 2 5 0 10 . 2 5 0 10 . 2 3 0 T o t a l 34 1 . 0 5 7 32 1 . 5 1 2 30 5 . 6 9 7 30 1 . 1 2 9 30 2 . 8 6 6 30 2 . 7 1 2 33 8 . 6 8 3 34 3 . 0 0 3 34 0 . 1 7 4 30 2 . 4 4 2 So u r c e : Ci t y o f A z u s a F i n a n c e D e p a r t m e n t As s i g n e d F u l l - T i m e E q u i v a l e n t ( F T E ) T o t a l s Ci t y o f A z u s a Ta b l e 2 3 - F u l l - t i m e a n d P a r t - t i m e E m p l o y e e s La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 151 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Po l i c e : Ca l l s f o r s e r v i c e 53 , 3 2 3 52 , 5 8 4 49 , 7 9 7 51 , 3 5 3 52 , 0 0 0 56 , 1 6 6 56 , 6 1 0 54 , 8 9 6 54 , 7 3 4 57 , 2 1 0 Pa r k i n g c i t a t i o n s i s s u e d (1 ) 4, 2 4 9 4, 0 5 3 4, 1 3 6 4, 6 9 1 4, 8 3 3 9, 8 8 1 9, 8 0 1 8, 1 8 8 6, 5 1 5 Pu b l i c W o r k s : St r e e t r e s u r f a c i n g ( l i n e a l m i l e s ) 10 . 2 17 . 0 15 . 3 12 . 8 15 . 0 13 . 3 14 . 3 2. 5 6. 0 4. 2 Pa r k s a n d r e c r e a t i o n : Nu m b e r o f r e c r e a t i o n c l a s s e s 78 78 11 0 84 84 84 19 6 31 0 56 73 Nu m b e r o f f a c i l i t y r e n t a l s 72 8 90 7 1, 1 5 6 1, 5 1 0 1, 4 9 7 1, 4 9 2 70 6 82 7 82 9 86 8 W a t e r : Nu m b e r o f s e r v i c e c o n n e c t i o n s 19 , 2 6 5 19 , 4 7 5 19 , 5 8 0 15 , 9 1 0 (2 ) 15 , 8 2 4 (2 ) 15 , 8 7 1 (2 ) 15 , 9 3 5 (2 ) 15 , 9 5 0 (2 ) 18 , 1 2 4 (2 ) 16 , 0 3 5 Av e r a g e d a i l y c o n s u m p t i o n 24 , 7 0 5 28 , 6 7 0 29 , 4 3 5 25 , 0 6 7 27 , 3 1 9 23 , 2 9 6 22 , 8 3 2 21 , 5 1 7 20 , 2 3 0 20 , 8 1 9 (h u n d r e d c u b i c f e e t ) Li g h t : Nu m b e r o f s e r v i c e c o n n e c t i o n s 15 , 1 7 0 15 , 4 4 5 15 , 5 3 0 15 , 3 5 8 15 , 5 3 1 15 , 6 5 0 15 , 4 0 3 15 , 2 7 6 (2 ) 15 , 3 6 2 (2 ) 15 , 5 6 7 Av e r a g e d a i l y c o n s u m p t i o n 64 0 , 5 2 5 67 4 , 1 7 5 72 7 , 4 3 7 70 7 , 9 6 5 70 0 , 1 6 7 69 1 , 0 7 0 69 , 3 4 7 67 , 2 9 2 65 , 4 0 5 64 , 8 0 2 (k W h ) Se w e r : Nu m b e r o f s e r v i c e c o n n e c t i o n s 15 , 8 0 0 16 , 0 0 7 16 , 0 7 2 14 , 1 8 3 (2 ) 14 , 3 4 4 (2 ) 14 , 4 0 2 (2 ) 14 , 0 7 3 (2 ) 14 , 3 3 5 (2 ) 14 , 0 7 1 (2 ) 15 , 2 3 5 Re f u s e : Nu m b e r o f r e s i d e n t i a l c u s t o m e r s 13 , 5 3 2 13 , 7 3 5 13 , 8 1 2 11 , 2 0 6 (2 ) 11 , 2 9 6 (2 ) 12 , 0 5 3 (2 ) 11 , 1 2 7 (2 ) 11 , 2 5 4 (2 ) 11 , 1 2 3 (2 ) 11 , 2 9 3 Av e r a g e d a i l y c o l l e c t i o n 14 7 15 1 15 7 15 8 10 9 11 4 12 2 18 4 17 7 17 8 (t h o u s a n d s o f p o u n d s ) (1 ) In f o r m a t i o n n o t a v a i l a b l e (2 ) St a r t i n g i n F Y 2 0 0 6 r e p o r t e d n u m b e r o f a c c o u n t s n o t u n i t s a s i n p r i o r p e r i o d s So u r c e : C i t y o f A z u s a P o l i c e D e p a r t m e n t C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t C i t y o f A z u s a R e c r e a t i o n D e p a r t m e n t C i t y o f A z u s a P u b l i c W o r k s D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 2 4 - O p e r a t i n g I n d i c a t o r s b y F u n c t i o n La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 152 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Po l i c e : St a t i o n s 1 1 1 1 1 1 1 1 1 1 Pu b l i c W o r k s : St r e e t s ( l i n e a l m i l e s ) 17 0 17 0 17 0 17 0 17 0 17 0 17 0 17 1 17 0 17 4 Tr a f f i c s i g n a l s 52 52 52 52 52 52 52 53 52 53 Pa r k s a n d r e c r e a t i o n : Pa r k s 10 10 10 10 10 13 13 13 13 15 Pa r k a c r e a g e 52 52 55 58 58 60 61 61 61 64 Co m m u n i t y c e n t e r s 1 1 2 2 2 3 3 3 3 3 W a t e r : Wa t e r m a i n s ( m i l e s ) 30 2 30 2 30 2 30 5 30 8 31 1 31 2 31 5 31 5 31 5 Nu m b e r o f f i r e h y d r a n t 2, 4 7 5 2, 4 7 5 2, 5 0 0 2, 5 2 5 2, 5 7 5 2, 5 8 5 2, 5 9 4 2, 5 9 4 2, 6 0 0 2, 8 1 0 Ma x i m u m d a i l y c a p a c i t y 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 70 , 5 0 0 (h u n d r e d c u b i c f e e t s ) Li g h t : St r e e t l i g h t s 42 66 65 64 65 65 65 65 65 65 Ma x i m u m d a i l y c o n s u m p t i o n 14 3 17 0 17 1 15 3 16 9 16 9 16 9 16 9 16 2 16 9 (k W h ) Se w e r : Sa n i t a r y s e w e r s ( m i l e s ) 60 60 61 61 61 61 61 61 61 80 St o r m s e w e r s ( m i l e s ) 15 15 15 15 15 15 15 15 15 15 Ma x i m u m d a i l y t r e a t m e n t c a p a c i t y 48 48 48 48 48 48 48 48 48 48 (c u b i c f e e t p e r s e c o n d ) So u r c e : C i t y o f A z u s a P o l i c e D e p a r t m e n t C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t C i t y o f A z u s a R e c r e a t i o n D e p a r t m e n t C i t y o f A z u s a P u b l i c W o r k s D e p a r t m e n t Fi s c a l Y e a r CI T Y O F A Z U S A Ta b l e 2 5 - C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n La s t T e n F i s c a l Y e a r s 153 Susan Paragas General Overview Director of Finance Letter of Transmittal Management's Discussion and Analysis Charts Statistical Section Dave Nguyen General Overview Senior Accountant Overall Coordination Proprietary Funds Non-Major Proprietary Funds Non-Major Governmental Funds Internal Service Fund-Consumer Service Capital Projects Funds Fixed Assets Accounting Henry Quintero Governmental Funds Senior Accountant Non-Major Governmental Funds Grants Funds (Single Audit) Successor/Redevelopment Agency Capital Projects Funds Fixed Assets Accounting Esther Grijalva Governmental Funds Accountant Non-Major Governmental Funds Internal Service Funds (except Consumer Service) Fiduciary Fund CITY OF AZUSA Table 26 - Schedule of Credits June 30, 2012 154