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HomeMy WebLinkAboutAzusa CAFR Final 1213_201404021144251149CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 PREPARED BY FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................. i Organizational Chart ............................................................................................................................... v Officials of the City of Azusa ................................................................................................................. vii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT .................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position ............................................................................................................... 17 Statement of Activities .................................................................................................................... 18 Fund Financial Statements: Balance Sheet - Governmental Funds ........................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................................................................... 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 ....................... 23 Budgetary Comparison Statement by Department - General Fund ............................................... 24 Statement of Net Position - Proprietary Funds ............................................................................... 25 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds ............................................................................................................. 26 Statement of Cash Flows - Proprietary Funds ............................................................................... 27 Statement of Fiduciary Net Position - Fiduciary Funds .................................................................. 28 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .............................................. 29 Notes to Financial Statements ........................................................................................................... 31 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ............................................................ 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 82 Budgetary Comparison Schedules - Special Revenue Funds: State Gasoline Tax ......................................................................................................................... 88 Proposition A .................................................................................................................................. 89 Proposition C .................................................................................................................................. 90 Community Development Block Grant ........................................................................................... 91 Senior Nutrition ............................................................................................................................... 92 Public Benefit Program ................................................................................................................... 93 Air Quality Improvement ................................................................................................................. 94 Grants and Seizure ......................................................................................................................... 95 Supplemental Law Enforcement ..................................................................................................... 96 Fire Safety ...................................................................................................................................... 97 Monrovia Nursery ........................................................................................................................... 98 Employee Benefits .......................................................................................................................... 99 Utility Mitigation ............................................................................................................................. 100 LACMTA ....................................................................................................................................... 101 Measure R .................................................................................................................................... 102 AB939 Fee .................................................................................................................................... 103 Budgetary Comparison Schedules - Capital Projects Funds: Public Works Endowment ............................................................................................................. 104 Budgetary Comparison Schedules - Debt Service Fund: Public Financing Authority ............................................................................................................ 105 Combining Statement of Net Position – Nonmajor Proprietary Funds ............................................ 106 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Proprietary Funds ........................................................................... 107 Combining Statement of Cash Flows – Nonmajor Proprietary Funds ............................................. 108 Combining Statement of Net Position – Internal Service Funds ..................................................... 110 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED) Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ................................................................................. 112 Combining Statement of Cash Flows – Internal Service Funds ................................................... 114 Combining Statement of Changes in Assets and Liabilities – Agency Fund ............................... 116 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Water – Enterprise Fund ....................................................................................... 117 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Light – Enterprise Fund ......................................................................................... 118 STATISTICAL SECTION Table 1 – Net Position by Component .......................................................................................... 121 Table 2 – Change in Net Position ................................................................................................. 122 Table 3 – Fund Balances of Governmental Funds ....................................................................... 124 Table 4 – Changes in Fund Balances of Governmental Funds ................................................... 125 Table 5 – Light Department, Electricity Sold by Type of Customer .............................................. 126 Table 6 – Electricity Rates ............................................................................................................ 127 Table 7 – Largest Electrical Customers ....................................................................................... 128 Table 8 – Water Sold by Type of Customer ................................................................................. 129 Table 9 – Water Rates .................................................................................................................. 130 Table 10 – Largest Water Customers .......................................................................................... 131 Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................ 132 Table 12 – Direct and Overlapping Property Rates ...................................................................... 133 Table 13 – Principal Property Tax Payers .................................................................................... 134 Table 14 – Property Tax Levies and Collections .......................................................................... 135 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Page Number STATISTICAL SECTION (CONTINUED) Table 15 – Ratios of Outstanding Debt by Type .......................................................................... 136 Table 16 – Ratio of General Bonded Debt Outstanding ............................................................... 137 Table 17 – Direct and Overlapping Debt ...................................................................................... 138 Table 18 – Legal Debt Margin Information ................................................................................... 139 Table 19 – Pledged Revenue Coverage ...................................................................................... 140 Table 20 – Pledged Revenue Coverage, Tax Allocation Bonds – Redevelopment Agency ....................................................... 142 Table 21 – Demographic and Economic Statistics ....................................................................... 143 Table 22 – Principal Employers .................................................................................................... 144 Table 23 – Full-time and Part-time Employees by Function ........................................................ 145 Table 24 – Operating Indicators by Function ............................................................................... 146 Table 25 – Capital Asset Statistics by Function ........................................................................... 147 Table 26 – Schedule of Credits .................................................................................................... 148 Se n i o r N u t i r i t i o n Wo m a n ' s C l u b Su c c e s s o r Ag e n c y Co n t r a c t Se r v i c e s Ad m i n i s t r a t i o n Ci t y Ma n a g e r ' s Of f i c e Pu b l i c In f o r m a t i o n Co m m u n i t y Fa c i l i t i e s Di s t r i c t s Pl a n n i n g De b t S e r v i c e Bu s i n e s s Li c e n s e Ci t y o f A z u s a Or g a n i z a t i o n a l C h a r t Po l i c e Em e r g e n c y Se r v i c e s En g i n e e r i n g Fa c i l i t i e s Po l i c e Se r v i c e s Ri s k Ma n a g e m e n t Pu r c h a s i n g Ci t y A t t o r n e y Ac c o u n t i n g Se n i o r C e n t e r Ci t y T r e a s u r e r Ad v i s o r y B o a r d s & C o m m i s s i o n s Fi n a n c e Ge n e r a l Se r v i c e s Re c r e a t i o n & Fa m i l y S e r v i c e s Pa r k s Ma i n t e n a n c e L& W Se r v i c e s Ci t y C l e r k Pu b l i c S a f e t y Li g h t a n d W a t e r Ut i l i t i e s Pu b l i c W o r k s Se w e r Wa t e r Tr a n s p o r t a t i o n Gr a f f i t i Ab a t e m e n t Ec o n o m i c & Co m m u n i t y De v e l o p m e n t Bu i l d i n g Hu m a n Re s o u r c e s Pe r s o n n e l Co n s u m e r Se r v i c e s Re c r e a t i o n Co m m u n i t y Im p r o v e m e n t Li b r a r y St r e e t s / Si d e w a l k Ma i n t e n a n c e El e c t r i c Re f u s e Fi r e S a f e t y Ci t i z e n s o f A z u s a Ma y o r & C i t y C o u n c i l Ut i l i t y B o a r d Su c c e s s o r A g e n c y B o a r d Ci t y M a n a g e r In f o r m a t i o n Te c h n o l o g y Ci t y Se r v i c e s Yo u t h a n d Ou t r e a c h Se r v i c e s ii i v THIS PAGE INTENTIONALLY LEFT BLANK vi 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 Jeffrey Cornejo City Clerk March, 2017 Art Vasquez City Treasurer March, 2017 Joseph Rocha Mayor March, 2015 Edward Alvarez Councilmember March, 2017 Angel Carrillo Councilmember March, 2015 Robert Gonzales Councilmember March, 2017 Uriel Macias Mayor Pro-Tem 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 and Library 626-812-5024/5277 Joe Jacobs Director of Recreation & Family Services 626-812-5220 George Morrow Director of Utilities 626-812-5219 Robert Neiuber Director of Human Resources 626-812-5183 Susan Paragas Director of Finance 626-812-5202 Daryl L. Osby Fire Chief 626-974-8371 City Attorney Best, Best, & Krieger (Marco Martinez) 949-263-2603 vii THIS PAGE INTENTIONALLY LEFT BLANK viii INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Azusa, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Azusa, California, (the City) as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Azusa, California, as of June 30, 2013, and, the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. To the Honorable Mayor and Members of the City Council City of Azusa, California Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2013 the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Emphasis of Matters We would like to draw the reader’s attention to Note 4 and Note 17 – relating to the extraordinary items relating to the Successor Agency. The note provides information on the dissolution of the Redevelopment Agency and the newly formed Successor Agency. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 To the Ho City of Az Other Re In accord March 10 of its com matters. T reporting over finan accordanc reporting Brea, Cal March 10 onorable Mayo zusa, Californ porting Requ dance with , 2014 on our mpliance with The purpose and complian ncial reportin ce with Gove and complian ifornia , 2014 or and Memb ia uired by Gov Government r consideratio certain provis of that report nce and the r ng or on com ernment Aud nce. bers of the Cit vernment Au t Auditing on of the City’ sions of laws t is to describ results of that mpliance. Th diting Stand ty Council uditing Stand Standards, s internal con , regulations, e the scope o t testing, and hat report is ards in cons dards we have a ntrol over fina , contracts, a of our testing not to provid an integral sidering City’s also issued ancial reportin nd grant agre of internal co de an opinion part of an a s internal con our report ng and on our eements and ontrol over fin on internal c audit perform ntrol over fin dated r tests other ancial control med in ancial 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 City of Azusa Management’s Discussion and Analysis June 30, 2013 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, 2013. 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 and deferred outflow of resources of the City exceeded its liabilities at the close of fiscal year 2013 by $136,813,052 (net position). • Total City assets of $272,106,037 include $151,759,702 or 48.4% of non-current assets attributed to capital assets, net of depreciation. • Total City liabilities of $136,551,254 include $123,200,884 or 90.22% of long-term liabilities attributed mainly to tax allocation bonds and certificates of participation. • As of June 30, 2013, the City’s governmental funds reported combined fund balances of $26,351,075. • At the end of the current fiscal year, the total fund balance for the General Fund was increased by $1,104,638, excluding the extraordinary loss of $6,812,432 to $17,699,146. • Total General Fund revenues received for the year were $33,666,025 and total General Fund expenditures for the year were $29,608,398, an excess of revenues over expenditures amounting to $4,057,627. 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 position presents information on all of the City’s assets, deferred outflow of resources and liabilities, with the difference reported as net position. 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 position changed during the most recent fiscal year. All changes in net position 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). 5 City of Azusa Management’s Discussion and Analysis June 30, 2013 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 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. 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 20 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 balance for the General Fund is considered to be a major fund. Data from the other 19 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Azusa adopts an annual appropriated budget for each of its governmental funds. A budgetary comparison statement has been provided for the General Fund and all Special Revenue Funds, Capital Project Funds, and Debt Service Funds to demonstrate compliance with this budget. Proprietary funds. The City of Azusa maintains two different types of proprietary funds, enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business type activities in the government-wide financial statements. The City uses an enterprise fund to account for its Water, Light, Sewer/Wastewater and Refuse Contract Utilities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its Consumer Services, Self Insurance, Central Services, Equipment Replacement, Intra-Governmental Loan and IT Services activity. Because these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the government-wide financial statements. 6 City of Azusa Management’s Discussion and Analysis June 30, 2013 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 agency 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, deferred outflows of resources, liabilities and net position for its governmental and business type activities. As noted earlier, a government’s net position may serve over time as a useful indicator of its financial position. 2013 2012 2013 2012 2013 2012 Current and other assets 43,699,826$ 71,991,001$ 72,248,399$ 84,380,577$ 115,948,225$ 156,371,578$ Capital assets, net 29,086,566 28,862,696 127,071,246 130,412,822 156,157,812 159,275,518 Total assets 72,786,392 100,853,697 199,319,645 214,793,399 272,106,037 315,647,096 Deferred charge on refunding - - 1,258,269 - 1,258,269 - Total deferred outflow of resouces - - 1,258,269 - 1,258,269 - Current liabilities 3,543,881 13,048,589 9,806,489 8,392,436 13,350,370 21,441,025 Long-term liabilities 41,413,513 30,189,092 81,787,371 81,526,957 123,200,884 111,716,049 Total liabilities 44,957,394 43,237,681 91,593,860 89,919,393 136,551,254 133,157,074 Net position: Net investment in capital assets 29,086,566 28,862,696 55,086,846 60,564,169 84,173,412 89,426,865 Restricted 8,800,537 5,306,039 11,554,302 10,845,193 20,354,839 16,151,232 Unrestricted (10,058,105) 23,447,281 42,342,906 53,464,644 32,284,801 76,911,925 Total net position 27,828,998$ 57,616,016$ 108,984,054$ 124,874,006$ 136,813,052$ 182,490,022$ City of Azusa - Summary of Net Position Governmental Business Type Activities Activities Total As of June 30, 2013, the City’s assets and deferred outflow of resources exceeded liabilities by $136,813,052. This represents a decrease from the prior year and can be attributed to the increase in restricted funds for capital projects in governmental activities and a decrease in business type activities in the net investment in capital assets as evidenced in the Proprietary Funds Statement of Net Position. The non operating categories such as interest expense and franchise fees resulted in a net position increase for the Water Fund $1,220,812, which includes the extraordinary loss of $1,221,413 from the Successor Agency loans and a net decrease for the Electric Fund $1,597,238. 7 City of Azusa Management’s Discussion and Analysis June 30, 2013 In evaluating the net position for both governmental and business-type activities in the City of Azusa, $84,173,412 (61.52%) denotes net position invested in capital assets and $20,354,839 (14.88%) represents resources that are subject to external restrictions. The remaining balance represents unrestricted net position of $32,284,801 (23.60%). The following chart shows the comparison of the three components of net assets for Fiscal Years 2012-13 and 2011-12 (in millions) Net investment in Capital Assets Restricted Unrestricted Total Net Position FY 11/12 $89.4 $16.1 $75.9 $181.4 FY 12/13 $84.2 $20.3 $32.3 $136.8 0.0 40.0 80.0 120.0 160.0 200.0 Governmental activities. The following condensed summary of activities of the City’s governmental activities for the year ended June 30, 2013 shows total net position equal $27,828,998, an decrease of $27,502,184 (-48,62%), excluding restatements, from the prior year. The primary decrease is the extraordinary loss of $28,165,584, which is further explained in note 4 of the financial statements, as well as the increase in restricted funds for community development projects. Revenue and expense graphs are included to aid the reader in understanding the results of the current year’s activities. Business type activities. Business type activities net position totaled $108,984,054, a decrease of $14,722,466 (-11.79%), excluding restatements, from the prior year. Key elements of the decrease also attributes to the extraordinary loss of $13,351,770, which is further explained in note 4 of the financial statements, as well as the increases in restricted funds for debt service and a decrease in net investment in capital assets. 8 City of Azusa Management’s Discussion and Analysis June 30, 2013 2013 2012 2013 2012 2013 2012 Program Revenues: Charges for services 7,408,567$ 8,312,509$ 69,416,979$ 66,225,588$ 76,825,546$ 74,538,097$ Operating contributions and grants 2,121,638 3,267,287 - - 2,121,638 3,267,287 Capital contributions and grants 2,988,760 137,102 - - 2,988,760 137,102 General Revenues: Taxes 29,220,689 29,046,350 556,161 555,225 29,776,850 29,601,575 Motor vehicle in lieu 25,224 - - - 25,224 - Investment earnings 166,674 420,126 359,573 884,535 526,247 1,304,661 Gain on sale of assets - (50,068) (3,690) (1,966,003) (3,690) (2,016,071) Miscellaneous 279,447 1,284,484 115,380 257,653 394,827 1,542,137 Total Revenues 42,210,999 42,417,790 70,444,403 65,956,998 112,655,402 108,374,788 Expenses: General Government 9,208,777 11,484,071 - - 9,208,777 11,484,071 Public Safety 20,157,469 20,475,798 - - 20,157,469 20,475,798 Community Development 3,094,737 3,286,420 - - 3,094,737 3,286,420 Parks and Recreation 3,823,597 4,178,098 - - 3,823,597 4,178,098 Public Works 5,210,465 8,850,113 - - 5,210,465 8,850,113 Interest and Fiscal Charges 1,362,362 2,244,315 - - 1,362,362 2,244,315 Water - - 18,975,068 19,366,325 18,975,068 19,366,325 Light - - 44,121,911 39,115,161 44,121,911 39,115,161 Sewer/Wastewater - - 4,573,251 2,083,756 4,573,251 2,083,756 Refuse Contract - - 2,835,041 2,851,882 2,835,041 2,851,882 Total Expenses 42,857,407 50,518,815 70,505,271 63,417,124 113,362,678 113,935,939 Increase (decrease) in net assets before transfers & extraordinary items (646,408) (8,101,025) (60,868) 2,539,874 (707,276) (5,561,151) Transfers 1,309,808 1,082,262 (1,309,808) (1,082,262) - - Extraordinary gain/loss on dissolution of redevelopment agency (28,165,584) 59,933,832 (13,351,770) - (41,517,354) 59,933,832 Change in Net Assets (27,502,184) 52,915,069 (14,722,446) 1,457,612 (42,224,630) 54,372,681 Net Assets (Deficits) - Beginning 56,565,044 3,627,149 124,872,036 123,400,456 181,437,080 127,027,605 Restatement of Net Assets (1,233,862) 22,826 (1,165,536) 13,968 (2,399,398) 36,794 Net Assets (Deficits) - Ending 27,828,998$ 56,565,044$ 108,984,054$ 124,872,036$ 136,813,052$ 181,437,080$ City of Azusa - Summary of Changes in Net Assets (Deficits) Governmental Business Type Activities Activities Total The City’s total revenues are $112,655,402 and the costs of all programs and services are $113,362,678. Fiscal year 2012-13 revenues increased by $4,280,614 (3.9%). Expenses decreased by $573,261 (0.5%) from prior year. Key factors include: ♦ The increase in the governmental activities revenue consisted of the capital grants. ♦ 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 3.5% and 7.1% increases in sales and service charges for Electric and Water, respectively. ♦ Building revenues increased by $243,577 (16.4%) compared to FY 2011-12. The increase is attributable to increased development in the City such as the construction of a materials recovery facility, a retail store outlet and the pickup of sales in a new housing development. 9 City of Azusa Management’s Discussion and Analysis June 30, 2013 Charges for services 17.6% Contributions & grants 12.1% Property taxes 19.7%Sales taxes 16.4% Franchise taxes 15.5% Business licenses taxes 4.7% Utility users taxes 3.2% Other taxes 5.9% Investment earnings/other 0.4% Revenues by Source-Governmental Activities Year Ended June 30, 2013 Key elements of this year’s summary of activities are as follows: ♦ Property tax revenue decreased by $1,544,003, Sales tax revenue increased by a $669,786 and Franchise fees increased by $170,668 from the prior year. ♦ Charges for services revenue increased by $903,942; investment earnings decreased by $253,452 primarily due to continued low interest rates. ♦ Operating contributions and grants decreased by $1,145,649 from the previous year primarily due to fewer grants for Public Works and a reduction in the Community Development Building Grant allocation. 10 City of Azusa Management’s Discussion and Analysis June 30, 2013 General government 21.3% Public safety 47.0% Community development 7.2% Parks and recreation 8.9% Public works 12.2% Interest & fiscal charges 3.2% Expense by Activities-Governmental Activities Year Ended June 30, 2013 • Total Governmental Activities expenses decreased $7,661,408 (-15.2%) over prior year. • Total General Government expenses decreased $2,275,294 (-19.8%) compared to prior year. The reduction is mainly due to layoffs, pension cost contributions by employees and attrition. • Public Works expenditures decreased $3,639,648 (41.1%) primarily due to reductions in capital improvement project activities. Financial Analysis of the City’s Funds As noted earlier, the City of Azusa uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. This information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending during the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $26,351,075, a decrease of $7,847,314 in comparison with the prior year’s revised fund balance. This decrease is attributable to the extraordinary loss of $6,812,432, which is discussed further in Note 4 of the financial statements. $21,017,402 is in non-spendable form, such as inventory, prepaids, land held for resale, etc.. 11 City of Azusa Management’s Discussion and Analysis June 30, 2013 The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2012-13, its fund balance increased by $1,104,638, excluding the extraordinary loss of $6,812,432, primarily as a result of the increased revenues, specifically attributable to sales taxes as a result of the rescinding of the sales tax agreement between the City and the former redevelopment agency of the City and increased consumer spending in the City. In addition, the property tax revenue also increased due to the sales of properties at the Rosedale housing development and the slowly increasing real property values. At the end of the current fiscal year, the General Fund total fund balance was $17,699,146. 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 position of the City’s proprietary funds at the end of the year amounted to $41,494,915. Total unrestricted net position decreased by $11,245,180 (-21.3%) and total net position decreased by $14,722,445, excluding restatements, (-2.1%) from the previous fiscal year. Unrestricted net position of the City’s Water Utility at the end of the year amounted to $29,504,413 which is an increase of $4,928,258 (20.1%), and total net position increased by $1,220,812 (2.2%) from the previous fiscal year. An increase in operating revenues and decrease in expenditures were attributable to the favorable numbers. Unrestricted net position of the City’s Light Utility at the end of the year amounted to $11,688,515. Total unrestricted net position decreased by $13,750,729 (-54.1%) and total net position decreased by $13,727,595 (-23.3%), excluding restatements, from the previous fiscal year. This negative change was primarily attributable to the increases source of supply costs and an extraordinary loss of $12,130,357, which is discussed further in Note 4 of the financial statements. The following chart highlights total revenue and total expenses for each of the business type activities for fiscal year end June 30, 2013. Water Light Sewer/ Wastewater Refuse Contract Revenue $21.8 $42.7 $2.5 $3.5 Expenses $19.2 $44.3 $4.6 $2.8 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 12 City of Azusa Management’s Discussion and Analysis June 30, 2013 General Fund Budgetary Highlights Following is a summary of budgetary changes and actual results for General Fund, revenues, expenditures, and other financing sources: Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 25,952,490$ 25,883,490$ 27,316,620$ 1,433,130$ Charges for services 1,360,355 1,607,885 1,691,537 83,652 Assessments 3,419,070 3,268,040 1,605,028 (1,663,012) Other revenue 2,483,980 1,922,980 3,052,840 1,129,860 Total revenue 33,215,895 32,682,395 33,666,025 983,630 EXPENDITURES Operations 27,973,730 28,026,390 27,933,658 92,732 Capital Outlay 4,345 84,345 83,188 1,157 Debt Service 1,661,435 1,661,435 1,591,552 69,883 Total expenditures 29,639,510 29,772,170 29,608,398 163,772 Excess of revenues over expenditures 3,576,385 2,910,225 4,057,627 819,858 OTHER FINANCING SOURCES (USES) Transfers in 1,432,970 1,485,190 1,463,591 (21,599) Transfers out (4,435,805) (4,440,555) (4,416,580) 23,975 Extraordinary loss - - (6,812,432) (6,812,432) Total other financing sources (uses)(3,002,835) (2,955,365) (9,765,421) (6,810,056) Net change in fund balance 573,550 (45,140) (5,707,794) (5,662,654) Fund balance beginning of year 23,406,940 23,406,940 23,406,940 - Fund balance end of year $23,980,490 $23,361,800 $17,699,146 ($5,662,654) City of Azusa - General Fund Budgetary Summary Revenues, Expenditures, and Changes in Fund Balance June 30, 2013 Budgeted Amounts The difference between the original expenditure budget and the final amended expenditure budget was an increase of $132,660 with highlights as follows: ♦ General Government saw a net decrease in appropriations of $468,180 that included the reductions in personnel costs due to additional staffing reductions and reductions in the unemployment costs. However, there were increases in retiree accrual payouts due to unanticipated retirements. ♦ Parks and Recreation increased by $119,415 mainly due to increases in utility costs associated with increases in utility rates and additional park maintenance responsibilities. 13 City of Azusa Management’s Discussion and Analysis June 30, 2013 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, 2013 amounted to $156,157,812 (net of accumulated depreciation). This investment includes land, construction in progress, land improvements, buildings and structures, machinery and equipment, automotive equipment and infrastructure. 2013 2012 2013 2012 2013 2012 Land 1,319,536$ 1,319,536$ 2,988,973$ 2,988,973$ 4,308,509$ 4,308,509$ Construction in Progress 71,222 71,222 18,379 18,379 89,601 89,601 Land Improvements 1,579,399 1,709,233 498,355 537,935 2,077,754 2,247,168 Buildings and Structures 7,398,119 7,199,303 13,905,951 14,416,101 21,304,070 21,615,404 Machinery and Equipment 1,021,749 1,181,538 3,054,779 3,461,308 4,076,528 4,642,846 Automotive Equipment 660,885 849,664 509,263 559,065 1,170,148 1,408,729 Infrastructure 17,035,656 16,532,200 106,095,546 108,429,091 123,131,202 124,961,291 Total 29,086,566$ 28,862,696$ 127,071,246$ 130,410,852$ 156,157,812$ 159,273,548$ City of Azusa - Capital Assets (Net of Accumulated Depreciation) Governmental Business Type Activities Activities Total 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 $120,078,440. Of this amount, $33,204,680 is a liability of the Governmental Activities and $86,873,760 is a liability of the Business Type Activities. 2013 2012 2013 2012 2013 2012 Employee Leave Benefits 4,586,789$ 3,575,113$ 1,500,254$ 1,252,028$ 6,087,043$ 4,827,141$ Net OPEB Liability 8,372,606 7,361,411 - - 8,372,606 7,361,411 Advance from the Successor Agency 8,208,833 - - - 8,208,833 - 2003 COPS 2,785,000 3,025,000 2,540,000 3,070,000 5,325,000 6,095,000 2006 Water Revenue Bonds - - 53,645,000 53,965,000 53,645,000 53,965,000 2008 Taxable Pension Fnding Bd 4,855,000 5,555,000 - - 4,855,000 5,555,000 2011 Sewer Installment Loan - - 5,405,000 5,630,000 5,405,000 5,630,000 2012 Electric Refunding Bond - - 5,820,000 5,820,000 5,820,000 5,820,000 2012 Water Refunding Bonds - - 8,715,000 8,715,000 8,715,000 8,715,000 Developer Agreements 10,403,644 10,005,461 - - 10,403,644 10,005,461 Claims and Judgments Payable 2,125,263 1,723,591 - - 2,125,263 1,723,591 Unamortized Loss on Defeasance - - - (1,318,187) - (1,318,187) Unamortized Premium/Discount 76,378 97,256 4,162,117 4,393,116 4,238,495 4,490,372 Total 41,413,513$ 31,342,832$ 81,787,371$ 81,526,957$ 123,200,884$ 112,869,789$ City of Azusa - Outstanding Debt Governmental Business Type Activities Activites Total Additional information on the City’s long-term debt can be found in Note 6 of Notes to the Basic Financial Statements. 14 City of Azusa Management’s Discussion and Analysis June 30, 2013 Economic Factors and Next Year’s Budgets and Rates The revenue projections for the 2013-14 General Fund adopted budget reflected an increase of 2.3% over the prior year’s final budget. Major revenues are anticipated to slightly increase due to the slow growth in the economy. As previously mentioned, the rescinding of the sales tax agreement between the City and the former RDA is attributable to the revenue increase. Overall, the City continues to rely on past trends, economic forecasts from outside agencies, such as the State Department of Finance, State Board of Equalization and the Los Angeles County Assessor’s Office, to predict revenues for entitlement, grants, state subventions, sales tax, and property tax. General Fund expenditures, including transfers out and capital outlay, increased by 0.77% for the 2013-14 adopted budget. In FY 2012-13, 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 2013-14, the City adopted a balanced budget with a surplus of $93,965 for the General Fund. The State of California fiscal crisis continues to have negative impacts on the City’s finances. The State eliminated the redevelopment agencies effective February 1, 2012. This elimination cripples future redevelopment as the former agency is prohibited from entering into new projects, obligations or commitments. This financial statement no longer includes the former RDA Funds. The funds were transferred to the Successor Agency Fund that is categorized as a fiduciary fund. While the City has seen a slight increase in sales tax and property tax revenue due to Target and the increasing home sales price, the levels are still below our peak in FY 2008-09. City staff will continue to be prudent with its budget and to monitor any legislative action that could impact the financial condition in Azusa. Request for Information This financial report is designed to provide a general overview of the financial position of the City of Azusa for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to City of Azusa Finance Department, 213 E. Foothill Blvd., Azusa, CA 91702. 15 THIS PAGE INTENTIONALLY LEFT BLANK 16 CITY OF AZUSA STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 12,820,677$ 28,294,425$ 41,115,102$ Receivables: Accounts 1,369,316 10,411,045 11,780,361 Taxes 2,240,799 - 2,240,799 Notes and loans 3,441,956 78,775 3,520,731 Accrued interest 1,807 21,959 23,766 Internal balances (5,957,405) 5,957,405 - Prepaid costs 59,218 16,124 75,342 Deposits 465 - 465 Inventories 136,942 1,666,719 1,803,661 Land held for resale 20,773,838 2,919,646 23,693,484 Restricted assets: Cash and investments 30,834 13 30,847 Cash with fiscal agent 640,438 13,202,045 13,842,483 Cash held for rate stabilization - 9,680,243 9,680,243 Net pension asset 8,140,941 - 8,140,941 Capital assets not being depreciated 1,390,758 3,007,352 4,398,110 Capital assets, net of depreciation 27,695,808 124,063,894 151,759,702 Total Assets 72,786,392 199,319,645 272,106,037 Deferred Outflows of Resources: Deferred charge on refunding - 1,258,269 1,258,269 Total Deferred Outflows of Resources - 1,258,269 1,258,269 Liabilities: Accounts payable 1,723,257 3,946,307 5,669,564 Accrued liabilities 1,073,929 243,789 1,317,718 Accrued interest 204,439 1,643,082 1,847,521 Unearned revenue 542,256 - 542,256 Deposits payable - 3,939,504 3,939,504 Due to other governments - 33,807 33,807 Noncurrent liabilities: Due within one year 5,195,862 2,821,262 8,017,124 Due in more than one year 36,217,651 78,966,109 115,183,760 Total Liabilities 44,957,394 91,593,860 136,551,254 Net Position: Net investment in capital assets 29,086,566 55,086,846 84,173,412 Restricted for: Community development projects 3,670,816 - 3,670,816 Public safety 1,291,419 - 1,291,419 Capital projects 3,355,674 - 3,355,674 Debt service 482,628 1,874,059 2,356,687 Rate stabilization - 9,680,243 9,680,243 Unrestricted (10,058,105) 42,342,906 32,284,801 Total Net Position 27,828,998$ 108,984,054$ 136,813,052$ JUNE 30, 2013 Primary Government See Notes to Financial Statements 17 CITY OF AZUSA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 9,208,777$ 2,304,290$ 43,130$ -$ Public safety 20,157,469 705,140 963,504 203,760 Community development 3,094,737 2,831,860 129,680 - Parks and Recreation 3,823,597 1,090,771 218,888 - Public works 5,210,465 476,506 766,436 2,785,000 Interest on long-term debt 1,362,362 - - - Total Governmental Activities 42,857,407 7,408,567 2,121,638 2,988,760 Business-Type Activities: Water 18,975,068 21,604,435 - - SewerLight 44,121,911 42,377,694 - - Solid WasteSewer/ Wastewater 4,573,251 2,480,008 - - Golf courseRefuse Contract 2,835,041 2,954,842 - - Total Business-Type Activities 70,505,271 69,416,979 - - Total Primary Government 113,362,678$ 76,825,546$ 2,121,638$ 2,988,760$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Utility users tax Other taxes Motor vehicle in lieu - unrestricted Use of money and property Other Gain on sale of capital asset Extraordinary gain/(loss) Transfers Total General Revenues, extraordinary items and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year Program Revenues See Notes to Financial Statements 18 Primary Government Component Unit Governmental Business-Type Marketing Activities Activities Total (6,861,357)$ -$ (6,861,357)$ (18,285,065) - (18,285,065) (133,197) - (133,197) (2,513,938) - (2,513,938) (1,182,523) - (1,182,523) (1,362,362) - (1,362,362) (30,338,442) - (30,338,442) - 2,629,367 2,629,367 - (1,744,217) (1,744,217) - (2,093,243) (2,093,243) - 119,801 119,801 - (1,088,292) (1,088,292) (30,338,442) (1,088,292) (31,426,734) 8,312,351 556,161 8,868,512 224,359 - 224,359 6,904,400 - 6,904,400 6,526,496 - 6,526,496 1,983,634 - 1,983,634 3,305,545 - 3,305,545 1,963,904 - 1,963,904 25,224 - 25,224 166,674 359,573 526,247 279,447 115,380 394,827 - (3,690) (3,690) (28,165,584) (13,351,770) (41,517,354) 1,309,808 (1,309,808) - 2,836,258 (13,634,154) (10,797,896) (27,502,184) (14,722,446) (42,224,630) 56,565,044 124,872,036 181,437,080 (1,233,862) (1,165,536) (2,399,398) 27,828,998$ 108,984,054$ 136,813,052$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 19 CITY OF AZUSA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2013 Other Total Governmental Governmental General Funds Funds Assets: Pooled cash and investments 20,154$ 10,237,215$ 10,257,369$ Receivables: Accounts 765,400 601,021 1,366,421 Taxes 2,137,026 103,773 2,240,799 Notes and loans 571,210 2,869,762 3,440,972 Accrued interest - 1,455 1,455 Prepaid costs 2,051 22,950 25,001 Deposits - 465 465 Inventories 136,942 - 136,942 Land held for resale 20,773,838 - 20,773,838 Restricted assets: Cash and investments - 30,834 30,834 Cash and investments with fiscal agents 157,818 482,620 640,438 Total Assets 24,564,439$ 14,350,095$ 38,914,534$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 582,283$ 721,759$ 1,304,042$ Accrued liabilities 981,414 63,379 1,044,793 Unearned revenues - 542,256 542,256 Due to other funds 4,580,228 358,801 4,939,029 Advances from other funds 231,000 750,000 981,000 Total Liabilities 6,374,925 2,436,195 8,811,120 Deferred Inflows of Resources: Unavailable revenues 490,368 3,261,971 3,752,339 Total Deferred Inflows of Resources 490,368 3,261,971 3,752,339 Fund Balances: Nonspendable: Inventory 136,942 - 136,942 Prepaid costs 2,051 22,239 24,290 Land held for resale 20,773,838 - 20,773,838 Notes and loans 80,842 1,025 81,867 Deposits - 465 465 Restricted for: Community development projects - 3,875,349 3,875,349 Public safety - 1,291,419 1,291,419 Capital Projects - 3,355,674 3,355,674 Debt service - 482,628 482,628 Unassigned (3,294,527) (376,870) (3,671,397) Total Fund Balances 17,699,146 8,651,929 26,351,075 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 24,564,439$ 14,350,095$ 38,914,534$ See Notes to Financial Statements 20 CITY OF AZUSA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2013 Fund balances of governmental funds 26,351,075$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity.28,605,103 Long-term debt and compensated absences that have not been included in the governmental fund activity: Long-term liabilities (26,328,855)$ Compensated Absences (4,306,322) (30,635,177) Governmental funds report all pension OPEB contributions as expenditures, however in the statement of net position any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as a asset or liability. Net OPEB Liability (8,372,606) Net Pension Asset 8,140,941 (231,665) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.(204,439) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.3,752,339 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 position.191,762 Net Position of governmental activities 27,828,998$ See Notes to Financial Statements 21 CITY OF AZUSA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Other Total Governmental Governmental General Funds Funds Revenues: Taxes 27,316,620$ 1,863,762$ 29,180,382$ Assessments 1,605,028 - 1,605,028 Licenses and permits 1,369,901 - 1,369,901 Intergovernmental 269,417 2,586,793 2,856,210 Charges for services 1,691,537 1,596,572 3,288,109 Use of money and property 105,017 52,005 157,022 Fines and forfeitures 989,616 - 989,616 Contributions 15,122 49,339 64,461 Miscellaneous 303,767 80,615 384,382 Total Revenues 33,666,025 6,229,086 39,895,111 Expenditures: Current: General government 6,868,994 299,713 7,168,707 Public safety 15,835,931 4,241,937 20,077,868 Community development 1,642,014 1,411,936 3,053,950 Parks and recreation 3,056,004 397,465 3,453,469 Public works 530,715 3,642,787 4,173,502 Capital outlay 83,188 2,265,436 2,348,624 Debt service: Principal retirement 1,239,367 240,000 1,479,367 Interest and fiscal charges 352,185 119,650 471,835 Total Expenditures 29,608,398 12,618,924 42,227,322 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,057,627 (6,389,838) (2,332,211) Other Financing Sources (Uses): Transfers in 1,463,591 4,539,565 6,003,156 Transfers out (4,416,580) (289,247) (4,705,827) Total Other Financing Sources (Uses)(2,952,989) 4,250,318 1,297,329 Extraordinary gain/(loss)(6,812,432) - (6,812,432) Net Change in Fund Balances (5,707,794) (2,139,520) (7,847,314) Fund Balances, Beginning of Year, as previously reported 15,134,156 10,882,645 26,016,801 Restatements 8,272,784 (91,196) 8,181,588 Fund Balances, Beginning of Year, as restated 23,406,940 10,791,449 34,198,389 Fund Balances, End of Year 17,699,146$ 8,651,929$ 26,351,075$ See Notes to Financial Statements 22 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, 2013 Net change in fund balances - total governmental funds (7,847,314)$ 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 1,787,842$ Depreciation (1,421,566) 366,276 Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repayments 1,479,367 Amortization of bond premiums/discounts 20,878 Accrued interest on Obligation debt (937,550) 562,695 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.26,145 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.(963,209) 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 500,293 Net Pension Asset (755,744) (255,451) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.2,867,018 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.(22,258,344) Change in net position of governmental activities (27,502,184)$ See Notes to Financial Statements 23 CITY OF AZUSA BUDGETARY COMPARISON STATEMENT BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 23,406,940$ 23,406,940$ 23,406,940$ -$ Resources (Inflows): Taxes 25,952,490 25,883,490 27,316,620 1,433,130 Assessments 3,419,070 3,268,040 1,605,028 (1,663,012) Licenses and permits 853,250 932,250 1,369,901 437,651 Intergovernmental 111,280 111,280 269,417 158,137 Charges for services 1,360,355 1,607,885 1,691,537 83,652 Use of money and property 420,000 420,000 105,017 (314,983) Fines and forfeitures 881,400 421,400 989,616 568,216 Contributions 20,500 20,500 15,122 (5,378) Miscellaneous 197,550 17,550 303,767 286,217 Transfers in 1,432,970 1,485,190 1,463,591 (21,599) Amounts Available for Appropriation 58,055,805 57,574,525 58,536,556 962,031 Charges to Appropriation (Outflow): General government City council 138,315 137,215 124,573 12,642 City Attorney 234,000 241,230 241,224 6 Administration 368,160 359,430 335,414 24,016 Promotion / Membership 172,870 167,410 146,417 20,993 City Clerk 541,675 434,245 415,244 19,001 Library Services - General 1,177,460 995,765 995,758 7 Library Services - Youth 21,280 21,740 21,732 8 Finance - Accounting 749,060 701,770 696,293 5,477 Cash Management 124,435 144,935 156,658 (11,723) Purchasing 218,930 227,115 226,931 184 Printing Services 11,400 11,400 9,036 2,364 Human Resources 297,900 376,855 346,673 30,182 City-wide 2,874,775 2,641,765 2,863,852 (222,087) Admin Services / Business Lic 290,115 291,320 289,189 2,131 Public safety Police 14,725,195 14,863,555 15,082,710 (219,155) Emergency Services 50,525 9,700 4,658 5,042 Police Department Contracts 794,080 716,080 628,083 87,997 Area D 100,000 114,800 114,780 20 Pension Safety 5,000 5,000 5,700 (700) Community development Planning 383,560 436,550 436,081 469 Building Regulation 680,825 947,000 778,527 168,473 Code Enforcement 470,270 474,075 427,406 46,669 Parks and recreation Recreation 1,270,560 1,380,695 1,380,483 212 Parks Maintenance 1,499,135 1,540,180 1,493,043 47,137 Senior Programs 194,380 163,000 162,886 114 Women's Club 28,345 27,960 19,592 8,368 Public works Engineering Services 59,000 59,000 55,011 3,989 Graffiti Removal 17,200 17,200 11,970 5,230 Facilities Maintenance 475,280 519,400 463,734 55,666 Capital outlay 4,345 84,345 83,188 1,157 Debt service: Principal retirement 700,000 1,190,000 1,239,367 (49,367) Interest and fiscal charges 961,435 471,435 352,185 119,250 Transfers out 4,435,805 4,440,555 4,416,580 23,975 Extraordinary loss - - 6,812,432 (6,812,432) Total Charges to Appropriations 34,075,315 34,212,725 40,837,410 (6,624,685) Budgetary Fund Balance, June 30 23,980,490$ 23,361,800$ 17,699,146$ (5,662,654)$ See Notes to Financial Statement 24 CITY OF AZUSA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2013 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 16,423,051$ 9,593,724$ 842,292 $ 26,859,067$ 3,998,666 $ Receivables: Accounts 4,976,631 4,656,672 767,693 10,400,996 12,944 Notes and loans 293 74,864 87 75,244 4,515 Accrued interest - 14,535 357 14,892 7,419 Prepaid costs 50 13,956 - 14,006 36,335 Due from other governments - - - - - Due from other funds 4,976,405 - - 4,976,405 - Inventories - 1,666,719 - 1,666,719 - Land held for resale 2,919,646 - - 2,919,646 - Restricted: Cash and investments - 13 - 13 - Cash with fiscal agent 6,723,780 2,110,787 4,367,478 13,202,045 - Cash held for rate stabilization - 9,680,243 - 9,680,243 - Total Current Assets 36,019,856 27,811,513 5,977,907 69,809,276 4,059,879 Noncurrent: Advances to other funds - 981,000 - 981,000 - Capital assets - net of accumulated depreciation 88,388,443 29,514,102 8,455,567 126,358,112 1,194,597 Total Noncurrent Assets 88,388,443 30,495,102 8,455,567 127,339,112 1,194,597 Total Assets 124,408,299 58,306,615 14,433,474 197,148,388 5,254,476 Deferred Outflows of Resources: Deferred charge on refunding 868,444 389,825 - 1,258,269 - Total Deferred Outflows of Resources 868,444 389,825 - 1,258,269 - Total Assets and Deferred Outflows of Resources:125,276,743$ 58,696,440$ 14,433,474$ 198,406,657$ 5,254,476$ Liabilities and Net Position: Liabilities: Current: Accounts payable 1,143,647$ 1,482,340$ 1,050,177$ 3,676,164$ 689,358$ Accrued liabilities 78,516 75,744 25,707 179,967 92,958 Accrued interest 1,485,669 157,413 - 1,643,082 - Deposits payable 875,594 2,942,943 120,967 3,939,504 - Due to other governments 33,807 - - 33,807 - Due to other funds - - - - 37,376 Accrued compensated absences 305,624 349,239 74,797 729,660 285,948 Accrued claims and judgments - - - - 1,195,450 Bonds, notes, and capital leases 1,000,000 555,000 325,000 1,880,000 - Total Current Liabilities 4,922,857 5,562,679 1,596,648 12,082,184 2,301,090 Noncurrent: Accrued compensated absences 152,357 305,276 36,794 494,427 270,686 Accrued claims and judgments - - - - 929,813 Bonds, notes, and capital leases 65,389,132 7,937,985 5,080,000 78,407,117 - Total Noncurrent Liabilities 65,541,489 8,243,261 5,116,794 78,901,544 1,200,499 Total Liabilities 70,464,346 13,805,940 6,713,442 90,983,728 3,501,589 Net Position: Net investment in capital assets 25,307,984 21,647,683 7,418,045 54,373,712 1,194,597 Restricted for debt service - 1,874,059 - 1,874,059 - Restricted for rate stabilization - 9,680,243 - 9,680,243 - Unrestricted 29,504,413 11,688,515 301,987 41,494,915 558,290 Total Net Position 54,812,397 44,890,500 7,720,032 107,422,929 1,752,887 Total Liabilities and Net Position 125,276,743$ 58,696,440$ 14,433,474$ 198,406,657$ 5,254,476$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 107,422,929$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds 1,561,126 Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds (1) Net Position per Statement of Net Position 108,984,054$ Business-Type Activities - Enterprise Funds Water Light See Notes to Financial Statements 25 CITY OF AZUSA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 21,604,435$ 42,377,694$ 5,434,850$ 69,416,979$ 10,376,010$ Interdepartmental charges 36,910 43,459 - 80,369 - Miscellaneous - 21,802 13,209 35,011 11,250 Total Operating Revenues 21,641,345 42,442,955 5,448,059 69,532,359 10,387,260 Operating Expenses: Administration and general 6,364,527 6,625,811 1,136,987 14,127,325 8,775,126 Source of supply 982,597 29,099,762 - 30,082,359 365,843 Pumping 52,312 - - 52,312 - Transmission/collection 1,681,967 3,157,698 - 4,839,665 - Treatment 457,764 - 2,772,972 3,230,736 - Refuse collection - - 2,835,041 2,835,041 - Cost of sales and services 2,666,906 162,978 - 2,829,884 - Claims expense - - 67,150 67,150 1,549,004 Depreciation expense 3,646,666 1,246,025 358,477 5,251,168 265,849 Total Operating Expenses 15,852,739 40,292,274 7,170,627 63,315,640 10,955,822 Operating Income (Loss)5,788,606 2,150,681 (1,722,568) 6,216,719 (568,562) Nonoperating Revenues (Expenses): Taxes - - 556,161 556,161 - Interest revenue 120,491 224,535 14,547 359,573 9,652 Interest expense (2,981,340) (324,912) (188,567) (3,494,819) - Other non-operating 1 - - (49,098) (49,098) - Special franchise fees (374,184) (3,630,291) - (4,004,475) - Loss on investment sale - (5,240) - (5,240) - Gain (loss) on disposal of capital assets - 1,550 - 1,550 - Total Nonoperating Revenues (Expenses)(3,235,033) (3,734,358) 333,043 (6,636,348) 9,652 Income (Loss) Before Transfers and 2,553,573 (1,583,677) (1,389,525) (419,629) (558,910) extraordinary items Transfers in - - - - 152,619 Transfers out (111,348) (13,561) (826,137) (951,046) (498,902) Extraordinary gain/(loss)(1,221,413) (12,130,357) - (13,351,770) (21,353,152) Changes in Net Position 1,220,812 (13,727,595) (2,215,662) (14,722,445) (22,258,345) Net Position: Beginning of Year, as previously reported 54,420,506 58,886,218 10,004,186 123,310,910 24,860,364 Restatements (828,921) (268,123) (68,492) (1,165,536) (849,132) Beginning of Fiscal Year, as restated 53,591,585 58,618,095 9,935,694 122,145,374 24,011,232 End of Fiscal Year 54,812,397$ 44,890,500$ 7,720,032$ 107,422,929$ 1,752,887$ Reconciliation of Changes in Net Position to the Statement of Activities: Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds (14,722,445)$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (1) Changes in Net Position of Business-Type Activities per Statement of Activities (14,722,446)$ Water Light See Notes to Financial Statements 26 CITY OF AZUSA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 21,026,323$ 42,639,859$ 5,346,998$ 69,013,180$ 10,359,788$ Cash received from/(paid to) interfund service provided 36,910 43,459 - 80,369 - Cash paid to suppliers for goods and services (6,246,556) (31,565,501) (5,015,827) (42,827,884) (1,468,306) Cash paid to employees for services (6,274,274) (6,537,394) (1,117,440) (13,929,108) (8,694,720) Net Cash Provided by (Used in) Operating Activities 8,542,403 4,580,423 (786,269) 12,336,557 196,762 Cash Flows from Non-Capital Financing Activities: Cash transfers out (111,348) (13,561) (826,137) (951,046) (498,902) Cash transfers in - - - - 152,619 Repayment made to other funds - - - - (4,465) Cash due from other funds (118,544) - - (118,544) - Net Cash Used in Non-Capital Financing Activities (229,892) (13,561) (826,137) (1,069,590) (350,748) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (1,489,063) (541,259) (4,683) (2,035,005) - Principal paid on capital debt 372,099 (134,911) (225,000) 12,188 - Interest paid on capital debt (3,692,509) (640,654) (188,567) (4,521,730) - Special franchise fees paid (374,184) (3,630,291) (49,098) (4,053,573) - Advance to other funds - 25,000 - 25,000 - Gain from sales of capital assets - 1,550 556,161 557,711 - Net Cash Provided by (Used in) Capital and Related Financing Activities (5,183,657) (4,920,565) 88,813 (10,015,409) - Cash Flows from Investing Activities: Repayment received on loans 576 2,621 189 3,386 5,904 Issuance of new loans - (5,240) - (5,240) (2,006) Interest received 120,491 210,000 15,195 345,686 16,509 Net Cash Provided by Investing Activities 121,067 207,381 15,384 343,832 20,407 Net Increase (Decrease) in Cash and Cash Equivalents 3,249,921 (146,322) (1,508,209) 1,595,390 (133,579) Cash and Cash Equivalents at Beginning of Year 19,896,910 21,531,089 6,717,979 48,145,978 4,132,245 Cash and Cash Equivalents at End of Year 23,146,831$ 21,384,767$ 5,209,770$ 49,741,368$ 3,998,666$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)5,788,606$ 2,150,681$ (1,722,568)$ 6,216,719$ (568,562)$ Adjustments to reconcile operating income (loss) net cash provided by (used in) operating activities: Depreciation 3,646,666 1,246,025 358,477 5,251,168 265,849 (Increase) decrease in accounts receivable (578,112) 240,363 (101,061) (438,810) (9,027) (Increase) decrease in inventories - (41,947) - (41,947) - (Increase) decrease in prepaid expense - (5,306) - (5,306) (18,541) Increase (decrease) in accounts payable (455,925) 386,434 537,325 467,834 103,452 Increase (decrease) in accrued liabilities 4,592 (22,662) 1,044 (17,026) (57,064) Increase (decrease) in deposits payable 49,492 515,756 120,967 686,215 (1,423) Increase (decrease) in due to other governments 1,423 - - 1,423 - Increase (decrease) in claims and judgments - - - - 401,672 Increase (decrease) in compensated absences 85,661 111,079 19,547 216,287 80,406 Total Adjustments 2,753,797 2,429,742 936,299 6,119,838 765,324 Net Cash Provided by (Used in) Operating Activities 8,542,403$ 4,580,423$ (786,269)$ 12,336,557$ 196,762$ Water Light See Notes to Financial Statements 27 CITY OF AZUSA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2013 Agency Funds Assets: Pooled cash and investments 7,273,064$ 2,454,329$ Receivables: Accounts 762 31,112 Taxes 132,878 - Notes and loans - 1,440,269 Accrued interest - 11 Advances to City - 8,208,833 Land held for resale - 15,903,913 Restricted assets: Cash and investments with fiscal agents - 4,136,587 Capital assets: Capital assets, not being depreciated - 410,420 Capital assets, net of accumulated depreciation - 1,313,999 Total Assets 7,406,704$ 33,899,473 Liabilities: Accounts payable 7,363,959$ 1,585,912 Accrued liabilities 4,947 - Accrued interest - 1,215,248 Unavailable revenues - 1,082,880 Deposits payable 25,358 - Due to other governments 12,440 - Advances from City - - Long-term liabilities: Due in one year - 1,295,000 Due in more than one year - 50,509,637 Total Liabilities 7,406,704$ 55,688,677 Net Position: Held in trust for other purposes (21,789,204) Total Net Position (21,789,204)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 28 CITY OF AZUSA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2013 Additions: Taxes 4,660,564$ Interest and change in fair value of investments 91,214 Contributions from City 8,501 Miscellaneous 696 Total Additions 4,760,975 Deductions: Administrative expenses 158,812 Contractual services 238,263 Interest expense 3,090,775 Depreciation expense 164,695 Total Deductions 3,652,545 Extraordinary gain/(loss)41,517,354 Changes in Net Position 42,625,784 Net Position - Beginning of the Year (63,641,474) Restatement (773,514) Net Position - End of the Year (21,789,204)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 29 THIS PAGE INTENTIONALLY LEFT BLANK 30 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 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: 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. 31 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position 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. 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. 32 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City reports the following major governmental fund: • 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 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. • 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. 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. 33 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 Successor Agency 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. d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position 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. 34 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) All trade and property tax receivables are shown net of an allowance for uncollectibles. Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31. Functional Classifications Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities which provide management or support services across more than one functional area, including Library Services. • Public Safety includes those activities which involve the protection of people and property. • Community Development includes those activities which involve the enhancing of the general quality of life. • 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. 35 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded), and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. In accordance with GASB Statement No. 34, the City has reported general infrastructure assets acquired in the current year and retroactively reported prior year’s acquisitions prior to fiscal years ended after June 30, 1980. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. 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 Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has this type of item which is the deferred charge on refunding of long-term debt. This has been presented in the Statements of Net Position. 36 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has this type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds’ balance sheet. The governmental funds report unavailable revenues from two sources: various taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 position, or private purpose fund types statement of net position. Bond premiums and discounts 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 no longer reported as deferred charges and amortized over the term of the related debt. Debt issuance costs should be recognized in the period incurred. This was a change in accounting principle due to implementing GASB 65. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Bond issuance costs are expensed in the year incurred. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fund financial statements, government funds report the following fund balance classification: Nonspendable Fund Balance The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in a spendable form or (b) legally or contractually required to be maintained intact. The “not spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long term amount of loans and notes receivable. 37 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. Net position flow assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 38 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Fund balance flow assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. e. Compensated Absences In accordance with GASB Statement No. 16, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. Under GASB Statement No. 16, a liability is recorded for unused sick leave balances to the extent that it is probable that the unused balances will result in termination payments. Generally, vacation, sick leave and compensatory absences vest and are recorded as the obligation is incurred. If material, a proprietary fund liability is accrued for all earned but unused leave benefits relating to the operations of the proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to year-end. These non-current amounts will be recorded as fund expenditures in the year in which they are paid or become due on demand to terminated employees. 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. 39 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 26,859,067$ 3,998,666$ Restricted: Cash and investments 13 - Cash with fiscal agent 13,202,045 - Cash held for rate stabilization 9,680,243 - Total 49,741,368$ 3,998,666$ 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 position: The governmental fund balance sheet includes reconciliation between fund balance, governmental funds and net position of governmental activities as reported in the government-wide statement of net position. 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 ($18,120,022) long-term debt difference is as follows: Long-term debt: Developer loans payable (10,403,644)$ Certificates of participation (2,785,000) Taxable pension bonds (4,855,000) Deferred premium on bonds and COP (to be amortized over life of debt)(76,378) Net adjustment to reduce fund balance of total governmental funds to arrive at net position of governmental activities (18,120,022)$ Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities. 40 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 position 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 position. 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 $562,695 difference is as follows: Debt issued or incurred: Developer loan (937,550)$ Principal repayments and amortizations: Certificates of participation 240,000 Pension bonds 700,000 Developer loans 539,367 Bond discount/premium 20,878 Net adjustment to decrease net changes in fund balance of total governmental funds to arrive at changes in net position of governmental activities. 562,695$ i. New Accounting Pronouncement The City implemented GASB Statement 65, Items Previously Reported as Assets and Liabilities. GASB 65, among other things, amends prior guidance with respect to the treatment of debt issuance costs. Debt issuance costs should be recognized in the period incurred rather than reported on the statement of net position as deferred charges and recognized systematically over the life of the debt. The accounting changes of this statement should be applied retroactive and therefore the City has reported a restatement of beginning net position for any unamortized debt issuance costs (deferred charges) previously reported on the statement of net position to conform. 41 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 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 Highway 39, Rosedale Traffic Mitigation, Park-in Lieu, and the Capital Projects Fund did not present a budget comparison schedule. According to Section 2-450 of the Azusa Municipal Code, budget amendments increasing the total budget of the City by $100,000 or more must be approved by City Council. Spending control (legal level of control) is established by the amount of expenditures budgeted at the department level. During the year, several supplementary appropriations were necessary. Individual amendments were not material in relation to the original appropriations. b. Expenditures Over Appropriations Excess of expenditures over appropriations in individual funds are as follows: Expenditures Appropriations Excess General Fund: General Government: Cash Management 156,658$ 144,935$ (11,723)$ City-Wide 2,863,852 2,641,765 (222,887) Public Safety: Police 15,082,710 14,863,555 (219,155) Pension Safety 5,700 5,000 (700) Fund c. Deficit Fund Balance The following funds had a deficit fund balance as of June 30, 2013: Nonmajor Funds: Governmental: LACMTA 172,092$ Community Development Block Grant 204,533 Fiduciary Funds: Private Purpose Trust Fund: Successor Agency of the Former Redevelopment Agency 138,582 These deficits will be funded through future years’ revenues and transfers. Internal Service Funds: Self Insurance 378,174$ 42 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2013, cash and investments were reported in the accompanying financial statements as follows: Governmental Activities: Cash and investments 12,820,677$ Restricted Cash and investments 30,834 Cash with fiscal agents 640,438 Business-type activities: Cash and investments 28,294,425 Restricted Cash and investments 13 Cash with fiscal agents 13,202,045 Cash held for rate stabilization 9,680,243 Fiduciary Funds: Agency Funds: Cash and investments 7,273,064 Private-Purpose Trust: Cash and investments 2,454,329 Restricted Cash with fiscal agents 4,136,587 Total Cash and Investments 78,532,655$ 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, 2013, the carrying amount of the City’s deposits was, $7,361,806 and the bank balance was $7,724,770. The $362,964 difference represents outstanding checks, deposits in transit 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 43 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Under provision of the City’s investment policy, and in accordance with the California Government Code, the following investments are authorized: • U.S. Treasury Obligations (bills, notes and bonds) • U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations • Mutual Funds • Commercial Paper • Repurchase Agreements • Certificates of Deposit • Negotiable Certificates of Deposit • Passbook Savings Accounts • Medium Term Corporate Notes • Bank Money Market Accounts • Local Agency Investment Fund (State Pool) Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for certain investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. 44 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) Credit Risk The City's investment policy limits investments in medium term notes (MTNs) to those rated A or higher by Standard and Poor's (S&P) or by Moody's. At June 30, 2013, the City’s investments in Federal Agency securities consisted of investments with Federal Home Loan Bank and Federal Farm Credit Bank. At June 30, 2013, 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, 2013, the City's investments in external investment pools and money market mutual funds are unrated. Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2013, 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, 2013, the City has investments of $9,979,360 (14%) with Federal Home Loan Bank and $12,788,210 (18%) with Federal Farm Credit Bank. Investments guaranteed by the U.S. government, investments in mutual funds and external investment pools are excluded from this requirement. 45 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that no investment may have a maturity of more than five years without receiving prior City Council approval. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated with bond issues may have a maturity of more than five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2013, the City had the following investments and original maturities: 6 months 6 months 1 to 3 3 to 5 Fair or less to 1 year years years Value Federal agency securities -$ -$ 2,010,870$ 14,197,261$ 16,208,131$ Local Agency Investment Fund 17,292,589 - - 17,292,589 Certificates of Deposit 4,836,046 - - - 4,836,046 Money market mutual funds 5,410,365 - - - 5,410,365 Cash with Fiscal Agents: Money market mutual funds 18,166,519 - - - 18,166,519 Federal agency securities - - - 7,533,535 7,533,535 Certificates of Deposit 245,034 400,332 1,078,298 - 1,723,664 45,950,553$ 400,332$ 3,089,168$ 21,730,796$ 71,170,849$ Remaining Investment Maturities Note 4: Extraordinary item In accordance with AB 1X26 and AB 1484 the Successor Agency submitted various loans between the former Redevelopment Agency and the City in the amount of $41,517,354. These have currently been denied by the State of California’s Department of Finance as an enforceable obligation in accordance with HSC section 34171 (d)(2). This determination was contested in the Department of Finance’s “Meet and Confer” session. Based on additional review done by the Department of Finance the loans were still denied as defined in 34167.10(b). However, according to HSC section 34191.4 the loan agreements between the City and the Successor Agency may become enforceable obligations by the Department of Finance if the Successor Agency receives a finding of completion. Therefore the loans are reported as an extraordinary loss as follows: Governmental Funds: General Fund 6,812,432$ Water Fund 1,221,413 Light fund 12,130,357 Internal Service Funds 21,353,152 41,517,354$ Government wide: Governmental Activites 28,165,584$ Business-type activities 13,351,770 41,517,354$ 46 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 5: Capital Assets Capital asset activity for the year ended June 30, 2013, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 1,319,536$ -$ -$ 1,319,536$ Construction-in-progress 71,222 - - 71,222 Total Capital Assets Not Being Depreciated 1,390,758 - - 1,390,758 Capital Assets, Being Depreciated: Land improvements 4,423,252 - - 4,423,252 Buildings and structures 12,224,576 491,835 - 12,716,411 Machinery and equipment 7,357,968 94,109 - 7,452,077 Automotive equipment 3,143,527 46,932 (102,184) 3,088,275 Infrastructure 46,767,732 1,188,436 - 47,956,168 Total Capital Assets Being Depreciated 73,917,055 1,821,312 (102,184) 75,636,183 Less Accumulated Depreciation: Land improvements 2,714,019 129,834 - 2,843,853 Buildings and structures 5,025,273 293,019 - 5,318,292 Machinery and equipment 6,176,430 256,388 (2,490) 6,430,328 Automotive equipment 2,293,863 199,751 (66,224) 2,427,390 Infrastructure 30,235,532 684,980 - 30,920,512 Total Accumulated Depreciation 46,445,117 1,563,972 (68,714) 47,940,375 Total Capital Assets Being Depreciated, Net 27,471,938 257,340 (33,470) 27,695,808 Governmental Activities Capital Assets, Net 28,862,696$ 257,340$ (33,470)$ 29,086,566$ 47 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 5: Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital Assets, Not Being Depreciated: Land 2,988,973$ -$ -$ 2,988,973$ Construction-In-Progress 18,379 - - 18,379 Total Capital Assets Not Being Depreciated 3,007,352 - - 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 12,764,331 22,100 - 12,786,431 Automotive equipment 3,673,560 90,976 (11,872) 3,752,664 Infrastructure 148,429,692 1,921,929 - 150,351,621 Total Capital Assets Being Depreciated 188,715,673 2,035,005 (11,872) 190,738,806 Less Accumulated Depreciation: Land improvements 674,383 39,580 - 713,963 Building and structures 8,219,671 510,150 - 8,729,821 Machinery and equipment 9,303,023 428,629 - 9,731,652 Automotive equipment 3,114,495 140,778 (11,872) 3,243,401 Infrastructure 40,000,601 4,255,474 - 44,256,075 Total Accumulated Depreciation 61,312,173 5,374,611 (11,872) 66,674,912 Total Capital Assets Being Depreciated, Net 127,403,500 (3,339,606) - 124,063,894 Business-Type Activities Capital Assets, Net 130,410,852$ (3,339,606)$ -$ 127,071,246$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 92,217$ Public safety 102,699 Community development 14,601 Parks and recreation 253,900 Public works 958,149 Internal service funds 142,406 Total 1,563,972$ Business-Type Activities: Water 3,646,666$ Light 1,246,025 Sewer/Wastewater 358,477 Internal service funds 123,443 Total 5,374,611$ 48 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 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, 2013: Beginning at Ending Due within July 1, 2012 Addition Deletion June 30, 2013 one year CITY Compensated Absences 3,343,113$ 3,215,384$ (2,252,175)$ 4,306,322$ 2,901,066$ Net OPEB Liability 7,361,411 1,011,195 - 8,372,606 - Advance from the Successor Agency 8,208,833 - - 8,208,833 - 2008 Taxable pension funding bonds 5,555,000 - (700,000) 4,855,000 780,000 Obligation under developer agreements 10,005,461 937,550 **(539,367) 10,403,644 - Total City 26,264,985 5,164,129 (3,491,542) 36,146,405 3,681,066 Public Financing Authority 2003 Certificates of Participation 3,025,000 - (240,000) 2,785,000 245,000 Internal Service Funds: Compensated Absences 232,000 108,846 (60,379) 280,467 74,346 Claims and Judgements payable 1,723,591 1,358,704 (957,032) 2,125,263 1,195,450 Total Internal Service 1,955,591 1,467,550 (1,017,411) 2,405,730 1,269,796 Unamortized Premiums/Discounts Premiums 115,103 - (23,008) 92,095 N/A Discounts (17,847) 2,130 - (15,717) N/A Total Premiums/ Discounts 97,256 2,130 (23,008) 76,378 - Total Governmental Long-term Debt 31,342,832$ 6,633,809$ (4,771,961)$ 41,413,513$ 5,195,862$ **Addition of $937,550 related to accreted interest for the fiscal year. Compensated Absences The City’s policies relating to compensated absences are described in Note 1 of the notes to financial statements. For the governmental activities, the liability will be paid in future years by the General Fund. Net OPEB Liability The City’s policies relating to OPEB are described in Note 8 of the notes to financial statements. For governmental activities, the liability will be paid in future years by the General Fund. Advance from the Successor Agency In 2011, the City called repayment of the advances made to the former Redevelopment Agency. The former Redevelopment Agency approved in March 2011 to transfer property to the City as repayment of the loans. The property was transferred at cost, which exceeded the loan agreement balance; therefore an advance to the Successor Agency was created in the amount of $8,032,773. In FY 2012 the advance increased by the Price Club triple flip sales tax allocation owed to the Successor Agency in the amount of $176,060. Outstanding balance at June 30, 2013 is $8,208,833. 49 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 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 $1,175,000 on January 1 each year from 2010 through 2018. The annual principal requirements to amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2013, are as follows: Principal Interest 2013-2014 780,000$ 315,575$ 2014-2015 870,000 264,875 2015-2016 965,000 208,325 2016-2017 1,065,000 145,600 2017-2018 1,175,000 76,375 Total 4,855,000$ 1,010,750$ 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. As of June 30, 2013, 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 as of June 30, 2013, was $2,785,000. The annual requirements to repay the outstanding indebtedness at June 30, including interest, are shown in the schedule below: Principal Interest 2013-2014 245,000$ 111,040$ 2014-2015 255,000 101,849 2015-2016 265,000 91,768 2016-2017 275,000 80,968 2017-2018 285,000 69,590 2018-2023 1,460,000 119,998 Total 2,785,000$ 575,213$ 2003 Certificates of Participation 50 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long-Term Debt (Continued) Obligation Under Developer Agreements On October 4, 1988, the former 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 former Redevelopment 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 the former Redevelopment Agency Next, $490,000 to Price Company Next, $178,000 to the former Redevelopment Agency Next, $178,000 to Price Company Then, balance divided 50% to the former Redevelopment 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, 2013, was $10,403,644. On May 15, 1989, the former Redevelopment Agency entered into an agreement with the City of Azusa to transfer all sales tax revenues received by the former Redevelopment Agency under the Price Company developer agreement to the City, except that required for repayment of the note or other required purposes. Due to the dissolution of the former Redevelopment Agency, the City has elected to continue this agreement under the City of Azusa. 51 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long-Term Debt (Continued) b. Long-Term Debt – Business-Type Activities The following is a summary of changes in long-term debt for the year ended June 30, 2013: Beginning at Ending Due within July 1, 2012 Addition Deletion June 30, 2013 one year Water Fund: Compensated Absences 372,320$ 334,121$ (248,460)$ 457,981$ 305,624$ 2006 Water Revenue Bonds 53,965,000 - (320,000) 53,645,000 330,000 2012 Water Refunding Bonds, Series A 8,715,000 - - 8,715,000 670,000 Total Water Fund 63,052,320 334,121 (568,460) 62,817,981 1,305,624 Light Fund: Compensated Absences 543,436 401,048 (289,969) 654,515 349,239 2003 Certificates of participation, - Series B and C 3,070,000 - (530,000) 2,540,000 555,000 2012 Electric Refunding Bonds, Series B 5,820,000 - - 5,820,000 - Total Light Fund 9,433,436 401,048 (819,969) 9,014,515 904,239 Sewer/Wastewater Fund: Compensated Absences 92,044 81,242 (61,695) 111,591 74,797 2011 Sewer Installment Loan, Series A 1,490,000 - (105,000) 1,385,000 160,000 2011 Sewer Installment Loan, Series B 4,140,000 - (120,000) 4,020,000 165,000 Total Light Fund 5,722,044 81,242 (286,695) 5,516,591 399,797 Internal Service Fund: Compensated Absences 244,228 219,070 (187,131) 276,167 211,602 Total Internal Service Fund 244,228 219,070 (187,131) 276,167 211,602 Total Business-Type Funds 78,452,028$ 1,035,481$ (1,862,255)$ 77,625,254 2,821,262$ Unamortized bond premiums 4,162,117 81,787,371$ 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. 52 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 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 $13,230,000 and interest ranges from 3.920% to 4.380%. The annual requirements to amortize the outstanding bonds as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 330,000$ 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 2017-2018 1,200,000 2,445,688 2018-2023 7,005,000 11,237,813 2023-2028 8,905,000 9,332,219 2028-2033 11,375,000 6,865,625 2033-2038 14,605,000 3,635,125 2038-2043 6,945,000 351,625 Totals 53,645,000$ 44,170,197$ 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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. 53 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long-Term Debt (Continued) The annual requirements to amortize the outstanding bonds as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 670,000$ 325,651$ 2014-2015 690,000 303,600 2015-2016 710,000 282,600 2016-2017 735,000 260,925 2017-2018 755,000 238,575 2018-2023 4,200,000 733,200 2023-2028 955,000 23,875 Totals 8,715,000$ 2,168,426$ 2012 Water Refunding Revenue Bonds, Series A 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. As of June 30, 2013, 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, 2013, was $2,540,000. The annual requirements to amortize the outstanding certificates of participation as of June 30, 2013, including interest, are as follows: Principal Interest 2013-2014 555,000$ 124,911$ 2014-2015 585,000 94,272 2015-2016 620,000 60,713 2016-2017 650,000 25,344 2017-2018 130,000 3,621 Totals 2,540,000$ 308,861$ Electric - Certificates of Participation, Series C 54 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long-Term Debt (Continued) 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 $582,000. As of June 30, 2013, the reserve requirement was fully funded. The annual requirements to amortize the outstanding bonds as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 -$ 175,569$ 2014-2015 - 175,569 2015-2016 - 175,569 2016-2017 - 175,569 2017-2018 650,000 169,069 2018-2023 4,240,000 486,534 2023-2028 930,000 13,950 Totals 5,820,000$ 1,371,829$ 2012 Electric Refunding Revenue Bonds, Series B 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 $505,000. Interest rates on the Series B installments are 3.600%. 55 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long-Term Debt (Continued) The annual requirements to amortize the outstanding installment agreements as of June 30, 2013, including interest are as follows: Principal Interest Principal Interest 2013 - 2014 160,000$ 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 - 2018 175,000 18,633 210,000 113,580 2018 - 2023 555,000 24,433 1,580,000 431,280 2023 - 2028 - - 1,470,000 80,460 Totals $1,385,000 $166,244 $4,020,000 $1,151,820 2011 Sewer Installment Series A 2011 Sewer Installment Series B Note 7: Defined Benefit Pension Plan Plan Description The City of Azusa contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan for the miscellaneous plan and a cost sharing multiple-employer public employee defined benefit pension plan for the safety plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of PERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. Funding Policy Participants are required to contribute 7% (9% for safety employees) of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate is 13.072% for non-safety employees and 28.785% for safety employees, of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. 56 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 7: Defined Benefit Pension Plan (Continued) Annual Pension Cost and Net Pension Obligation (Asset) The City's annual pension cost and change in net pension obligation (asset) for the fiscal year ending June 30, 2013, were as follows: Annual required contribution 4,269,337$ Interest on net pension obligation (572,353) Adjustment to annual required contribution 491,075 Annual pension cost 4,188,059 Contribution made 4,943,803 Increase (decrease) in net pension obligation (755,744) Net pension obligation (asset) beginning of year (7,385,197) Net pension obligation (asset) end of year (8,140,941)$ The required contribution was determined as part of the June 30, 2010, 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, 2010 Actuarial Cost Method Entry Age Actuarial Cost Method Amortization Method Level Percent of Payroll Average Remaining Period 21 Years as of the Valuation Date for Miscellaneous Employee and 19 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. 57 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 7: Defined Benefit Pension Plan (Continued) Three-Year Trend Information for PERS (Miscellaneous Plan) (Amounts in Thousands) Annual Pension Percentage of Net Pension Fiscal Year Cost (APC)APC Contributed Obligation 6/30/2011 2,725$ 100%-$ 6/30/2012 2,821 100%- 6/30/2013 2,273 100%- Three-Year Trend Information for PERS (Safety Plan) (Amounts in Thousands) Annual Pension Percentage of Net Pension Fiscal Year Cost (APC)APC Contributed Obligation 6/30/2011 2,119$ 105%(7,296)$ 6/30/2012 2,733 103%(7,385) 6/30/2013 2,671 103%(8,141) For fiscal year 2012-2013, 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. 58 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 7: Defined Benefit Pension Plan (Continued) Actuarial Accrued UAAL as Actuarial Actuarial Liability Unfunded a % of Valuation Value of (AAL) Entry AAL Funded Covered Covered Date Assets Age (UAAL)Ratio Payroll Payroll 6/30/2010 82,653$ 93,158$ 10,505$ 88.7% 16,192$ 64.88% 6/30/2011 88,006 100,812 12,806 87.3% 16,489 77.66% 6/30/2012 92,963 101,785 8,823 91.3% 15,199 58.05% 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, 2013, the covered payroll for employees in the plan was $467,695. Total payroll for the City was $27,772,786. 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, 2013, the employer and the employees each contributed an amount equal to $17,539. 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 3.59%2.00% SEIU 1.91%4.00% AMMA 7.41%2.50% Executive Management 5.79%0.00% 59 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 8: 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 $584,099 was made during the 2012-2013 fiscal year and was not included in the June 30, 2013 actuarial study. The purpose of the contribution was to pay current year premiums for retirees. As a result, the City calculated and recorded a Net OPEB Liability, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC)1,846,264$ Interest on Net OPEB Obligation 36,178 Adjustment to ARC (287,148) Annual OPEB Cost 1,595,294 Contributions made (584,099) (Decrease) increase in Net OPEB obligation 1,011,195 Net OPEB obligation (asset) June 30, 2012 7,361,411 Net OPEB obligation (asset) June 30, 2013 8,372,606$ 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 2012-2013, the City’s annual OPEB cost (expense) of $1,595,294 was less than the ARC. The last three year trend information on the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented below: Fiscal Year End Annual OPEB Cost Actual Contribution (Net of Adjustments) Percentage of Annual OPEB Cost Contributed Net OPEB Obligation (Asset) 6/30/2011 2,465,000$ 439,152$ 18% 6,207,671$ 6/30/2012 1,643,364 489,624 30% 7,361,411 6/30/2013 1,595,294 584,099 37% 8,372,606 60 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 8: 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 Actuarial 6/30/2009 -$ 25,445,000$ 0.0% 19,966,000$ 127% 3.50% Actuarial 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, 2013, was twenty-five years. The number of active participants is 327. Note 9: 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 $5,000,000. 61 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 9: Insurance (Continued) For the past three years, no settlements or claims payments have exceeded the amount of the applicable insurance coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: Claims Incurred Beginning and Changes Less Claim Ending Balance in Estimates Payments Balance 2011-2012 1,880,766$ 396,600$ (553,775)$ 1,723,591$ 2012-2013 1,723,591 1,358,704 (957,032) 2,125,263 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 10: Interfund Receivables, Payables and Transfers The composition of interfund balances as of June 30, 2013, was as follows: Due To/From Other Funds Nonmajor General Governmental Internal Fund Funds Service Total Due to Other Funds: Water 4,580,228$ 358,801$ 37,376$ 4,976,405$ Due From other Funds The due from other funds amounts listed above consisted of short-term loans to cover negative cash. Advances To/From Other Funds Light Funds Fund Advances From Other Funds: General 231,000$ Nonmajor Governmental Funds 750,000 Total 981,000$ Advances To Other Funds: The Light Fund advanced $231,000 to the General Fund and $750,000 to the Capital Projects Fund for various project expenditures. 62 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 10: Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers Nonmajor General Governmental Internal Transfer Out:Fund Funds Service Funds Total General Fund -$ 4,404,101$ 12,479$ 4,416,580$ Nonmajor Governmental Funds 286,645 2,602 - 289,247 Water Fund - 111,348 - 111,348 Light Fund - 13,561 - 13,561 Nonmajor Proprietary Funds 685,997 - 140,140 826,137 Internal Service Funds 490,949 7,953 - 498,902 Total 1,463,591$ 4,539,565$ 152,619$ 6,155,775$ 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 Non-major Governmental Funds were for various operating transactions made throughout the year. 63 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 11: Fund Equity and Net Position Restatements Beginning fund equity and net position have been restated as follows: Major governmental funds: General Fund To recognize revenue that related to prior year.63,951$ Non-major governmental funds: Community Development Block Grant 15,602 Monrovia Nursery (106,798) To recognize revenue and expenditures that related to prior year. Major proprietary Funds: Water Fund (828,921) Light Fund (268,123) To appropriately implement GASB 65. Non-major proprietary funds: Sewer/Wastewater Fund (68,492) To appropriately implement GASB 65. Internal service funds: Intra-governmental Loan Fund (849,132) To eliminate disallowed amounts Due from Successor Agency. Fiduciary funds: Successor Agency Fund (1,605,538) To restate loans between City and former redevelopment agency 832,024 Beginning net position has been restated as follows: Governmental Activities: (1,233,862)$ Business-Type Activities: Enterprise funds restatements detailed above (1,165,536) Total Net Asset Restatements (2,399,398)$ Governmental and internal service fund restatements detailed above; $357,485 restatement to implement GASB 65 in the government-wide financial statements To appropriately implement GASB 65 and additionally recognize revenue related to prior year. 64 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 12: Grant and Seizure Fund The Grant and Seizure special revenue fund include the following items in its fund balance: Grants & Seizures (8,940)$ Jack Williams Memorial 600 Grants & Seizures-Police 17 Asset Seizure Federal - Department of Justice 234,406 Asset Seizure County 23,376 Asset Seizure Drug and Gang 7,186 Office of Traffic Safety 2,761 Asset Seizure Federal - Department of Treasury 87 Inmate Welfare Fund 8,361 Sobriety Checkpoint FY 12/13 (17,132) 2012 JAG Grant (17,268) AQMD Tree Planting 3,093 Sr Cntr Cyn City Grant 4,189 Senior Restricted Donations 98 Public Library Grant 289,561 Library Restricted Donations 62,847 Gates Foundation 497 Broadband Grant (Lib)7,464 Family Place Grant 1,903 Book Clubs 2,325 TLA50 Fellowship Grant (9) Youth Programs 689 Summer Reading 3,481 Special Programs 451 CA Literacy Grant 24 Canyon City Foundation - Healthy Lit Learn 11,249 General Plan Surcharge 414,118 AB29X Meters 86,607 Oil Block Grant 6,439 Beverage Container Recycling 44,332 Technology Grant 143,057 Safe Routes to School (52,721) CIP-Recreation Grants (6,520) Rehab of Zacatecas Park 516 Total 1,257,144$ 65 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 13: 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, 2013, is as follows: Assets: Current assets 1,042,167$ Restricted assets 4,367,478 Capital assets 8,455,567 Total assets 13,865,212 Liabilities: Current liabilities 1,134,991 Noncurrent liabilities 5,116,794 Total liabilities 6,251,785 Net position: Net Invested in capital assets 7,418,045 Unrestricted 195,382 Total net position 7,613,427$ Condensed Statement of Net Position Sewer charges 2,485,569$ Depreciation expense (358,477) Other operating expenses (3,977,109) Operating income (1,850,017) Nonoperating revenues (expenses): Investment earnings 14,547 Interest expense (188,567) Special franchise fees (49,098) Transfers out (150,727) Change in net assets (2,223,862) Beginning net position, as originally reported 9,905,781 Restatement (68,492) Ending net position 7,613,427$ Condensed Statement of Revenues, Expenses and Changes in Net Position Net cash provided by (used in): Operating activities (880,272)$ Noncapital financing activities (150,727) Capital and related financing activities (467,348) Investing activities 15,384 Net decrease in cash (1,482,963) Beginning cash and cash equivalents 6,564,456 Ending cash and cash equivalents 5,081,493$ Condensed Statement of Cash Flows 66 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 14: 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 1160 Nicole Court, Glendora, California 91740. As of June 30, 2013, the City’s ownership of significant projects of SCPPA includes the following: 1% of SCPPA’s $726,982,000 investment (at cost) in the Palo Verde Nuclear Generating Station (with related SCPPA indebtedness of $58,440,000), 1% of SCPPA’s $57,555,000 investment (at cost) in the Mead – Phoenix Transmission Project (with related SCPPA indebtedness of $44,895,000), 2.2% of SCPPA’s $173,574,000 investment (at cost) in the Mead - Adelanto Transmission Project (with related SCPPA indebtedness of $143,991,000), 14.7% of SCPPA’s $257,963,000 investment (at cost) in the San Juan Generating Station (with related indebtedness of $99,130,000), and 4.2% of SCPPA’s $21,000 investment (at cost) in the Hoover Uprating Green Power Project (with related SCPPA indebtedness of $9,685,000). Note 15: Rate Stabilization Fund The City of Azusa has provided for a rate stabilization fund in the amount of $9,680,243 (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 16: 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. 67 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 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 not to become the Successor Agency for the former redevelopment agency’s housing functions 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 directed 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 was not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller was required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 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. 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. a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and Investments pooled with the City 2,454,329$ Restricted cash and Investments pooled with the City 4,136,587 Total Cash and Investments 6,590,916$ 68 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 b. Capital Assets An analysis of capital assets as of June 30, 2013, 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 629,736 116,800 - 746,536 Infrastructure 37,803 47,895 - 85,698 Total Accumulated Depreciation 667,539 164,695 - 832,234 Total Capital Assets being depreciated, net 1,478,694 (164,695) - 1,313,999 Capital Assets 1,889,114$ (164,695)$ -$ 1,724,419$ Balance July 1, 2012 Balance June 30, 2013 a. 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: Balance July 1, 2012 Additions* Repayments Balance June 30, 2013 Due Within One Year Fiduciary Funds: 2003 Refunding TABs 7,880,000$ -$ (495,000)$ 7,385,000$ 515,000$ 2005 TABS, Series A 9,610,816 97,711 - 9,708,527 - 2007 TABs, Series A 14,280,000 - (430,000) 13,850,000 450,000 2007 TABs, Series B 4,450,000 - (95,000) 4,355,000 100,000 2008 TABs, Series A 6,485,000 - (85,000) 6,400,000 95,000 2008 TABs, Series B 10,975,000 - (130,000) 10,845,000 135,000 Total Fiduciary Funds $ 53,680,816 $ 97,711 $ (1,235,000) 52,543,527 $ 1,295,000 Unamortized Discounts (738,890) Total Long-term Debt 51,804,637$ *Addition of $97,711 related to accreted interest. 69 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) b. Long-Term Debt The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012, as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2012, follows: Balance July 1, 2012 Additions* Repayments Balance June 30, 2013 Due Within One Year Fiduciary Funds: 2003 Refunding TABs 7,880,000$ -$ (495,000)$ 7,385,000$ 515,000$ 2005 TABS, Series A 9,610,816 97,711 - 9,708,527 - 2007 TABs, Series A 14,280,000 - (430,000) 13,850,000 450,000 2007 TABs, Series B 4,450,000 - (95,000) 4,355,000 100,000 2008 TABs, Series A 6,485,000 - (85,000) 6,400,000 95,000 2008 TABs, Series B 10,975,000 - (130,000) 10,845,000 135,000 Total Fiduciary Funds $ 53,680,816 $ 97,711 $ (1,235,000) 52,543,527 $ 1,295,000 Unamortized Discounts (738,891) Total Long-term Debt 51,804,636$ *Addition of $97,711 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 $95,153,034, 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 $4,660,564, and the debt service obligation on the bonds was $4,157,598. 70 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Tax Allocation Bonds Payable Tax Allocation Bonds 2003 Tax Allocation Refunding Bonds, Series A The Azusa Redevelopment Agency issued $11,580,000 Merged Project Area Tax Allocation Refunding Bonds, 2003 Series A, dated December 1, 2003 to refund the 1994 Series A Merged Project Area Tax Allocation Bonds. Principal payments ranging from $425,000 to $1,235,000 are due annually on August 1 beginning in the year 2004 through the year 2023, interest rates ranging from 3.00% to 4.60% per annum are due and payable on February 1 and August 1 and are secured by tax increment revenues. Debt service payments on the bonds are payable from pledged tax increment revenues. The outstanding principal balance at June 30, 2013, was $7,385,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest, are as follows: Principal Interest 2013-2014 515,000$ 305,519$ 2014-2015 530,000 286,248 2015-2016 550,000 265,310 2016-2017 575,000 242,810 2017-2018 600,000 218,935 2018-2023 3,380,000 675,363 2023-2028 1,235,000 28,405 Totals 7,385,000$ 2,022,590$ 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, 2013, was $9,708,527. 71 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 -$ 349,425$ 2014-2015 - 349,425 2015-2016 - 349,425 2016-2017 - 349,425 2017-2018 - 349,425 2019-2023 - 1,747,125 2023-2028 3,778,527 1,714,950 2028-2033 4,960,000 870,075 2033-2037 970,000 43,650 Totals 9,708,527$ 6,122,925$ Refunding Bonds 2005 Tax Allocation 2007 Tax Allocation Bonds, Series A The Azusa Redevelopment Agency issued $15,780,000 Series A Merged Project Area Tax Allocation Bonds, dated July 31, 2007 to finance redevelopment projects. Current Interest Bonds are subject to annual sinking fund installment payments ranging from $340,000 to $365,000 beginning August 1, 2008 through August 1, 2009, bearing interest rates ranging from 5.27% to 5.30% per annum. Term Bonds are due beginning August 1, 2010 through August 1, 2035, with installment payments ranging from $385,000 to $1,625,000, bearing interest rates ranging from 5.77% to 6.15% per annum. Debt service payments on the bonds are payable from pledged tax increment revenues. The outstanding principal balance at June 30, 2013, was $13,850,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 450,000$ 822,284$ 2014-2015 480,000 795,477 2015-2016 505,000 767,084 2016-2017 535,000 737,106 2017-2018 565,000 705,399 2018-2023 3,380,000 2,965,398 2023-2028 1,940,000 2,137,125 2028-2033 3,030,000 1,411,118 2033-2038 2,965,000 333,484 Totals 13,850,000$ 10,674,475$ Bonds, Series A 2007 Tax Allocation 72 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 2007 Tax Allocation Refunding Bonds, Series B The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area Tax Allocation Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds. Current Interest Bonds are subject to annual sinking fund installment payments ranging from $80,000 to $140,000 due beginning August 1, 2008 through August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum. Term Bonds are due beginning August 1, 2022 through August 1, 2036, with installment payments ranging from $150,000 to $305,000, bearing interest rates ranging from 5.25% to 5.30% per annum. Debt service payments on the bonds are payable from pledged tax increment revenues. The outstanding principal balance at June 30, 2013, was $4,355,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 100,000$ 221,968$ 2014-2015 105,000 217,405 2015-2016 110,000 212,513 2016-2017 110,000 207,439 2017-2018 120,000 202,075 2018-2023 680,000 916,404 2023-2028 875,000 717,669 2028-2033 1,125,000 454,873 2033-2038 1,130,000 123,755 Totals 4,355,000$ 3,274,101$ 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, 2013, was $6,400,000. 73 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 95,000$ 485,250$ 2014-2015 100,000 479,275 2015-2016 110,000 472,575 2016-2017 120,000 464,950 2017-2018 125,000 456,681 2018-2023 830,000 2,121,913 2023-2028 2,555,000 1,373,194 2028-2033 1,440,000 604,275 2033-2038 1,025,000 117,000 Totals 6,400,000$ 6,575,113$ Bonds, Series A 2008 Tax Allocation 2008 Housing Tax Allocation Bonds, Series B The Azusa Redevelopment Agency issued $11,580,000 of Housing Tax Allocation Bonds, Series B, dated November 25, 2008. Proceeds of the bonds were to provide funds to finance low and moderate income housing within or of benefit to the project area, satisfy the reserve requirement for the bonds, and pay costs incurred in connection with the issuance. The bonds consist of serial bonds due in annual installments ranging from $125,000 to $355,000 maturing on August 1, 2009 through August 1, 2020; and term bonds of $1,075,000 due August 1, 2024 and $8,420,000 due August 1, 2038. Serial bonds have interest rates ranging from 3.5% through 6.6%. The term bonds carry interest rates of 6.75% and 7.0%. Debt service payments on the bonds are payable from pledged tax increment revenues. The outstanding principal balance at June 30, 2013, was $10,845,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2013, including interest are as follows: Principal Interest 2013-2014 135,000$ 740,664$ 2014-2015 145,000 733,133 2015-2016 155,000 724,689 2016-2017 160,000 715,433 2017-2018 170,000 705,320 2018-2023 1,045,000 3,337,858 2023-2028 2,290,000 2,830,206 2028-2033 3,540,000 1,756,650 2033-2038 3,170,000 468,300 2038-2043 35,000 1,225 Totals 10,845,000$ 12,013,478$ Bonds, Series B 2008 Tax Allocation 74 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 17: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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. c. 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. d. Extraordinary item In accordance with AB 1X26 and AB 1484 the Successor Agency submitted various loans between the former Redevelopment Agency and the City in the amount of $41,517,354. These have currently been denied by the State of California’s Department of Finance as an enforceable obligation in accordance with HSC section 34171 (d)(2). This determination was contested in the Department of Finance’s “Meet and Confer” session. Based on additional review done by the Department of Finance the loans were still denied as defined in 34167.10(b). However, according to HSC section 34191.4 the loan agreements between the City and the Successor Agency may become enforceable obligations by the Department of Finance if the Successor Agency receives a finding of completion. The finding of completion was received on May 31, 2013. The loans are reported as an extraordinary gain in the amount of $41,517,354. The Successor Agency is now able to place loan agreements on the ROPS upon oversight board approval for legitimate redevelopment purposes per HSC section 34191.4(b)(1). Loan repayments are governed by HSC section 34191.4(a)(2). Note 18: Subsequent Events On November 26, 2013, Moody’s Investors Service (“Moody’s”) downgraded the 2006 the Azusa Public Financing Authority’s Parity Revenue Bonds (Water System Capital Improvement Program) to A2 from Aa3. In addition on November 25, 2013, Moody’s downgraded to 2003 Lease Revenue Refunding COP to Ba2 from Ba1. 75 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments 126,799$ 76,941$ 1,674,599$ -$ Receivables: Accounts 100,427 29,702 2,483 213,680 Taxes 96,431 - - - Notes and loans 742 37 - 83,737 Accrued interest 44 3 366 - Prepaid costs - 13,010 1,131 - Deposits - - 465 - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agents - - - - Total Assets 324,443$ 119,693$ 1,679,044$ 297,417$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 113,114$ 46,632$ 33,326$ 40,259$ Accrued liabilities 23,677 12,429 6,143 2,480 Unearned revenues 100,427 - - - Due to other funds - - - 161,794 Advances from other funds - - - - Total Liabilities 237,218 59,061 39,469 204,533 Deferred Inflows of Resources: Unavailable revenues 42,397 - - 297,417 Total Deferred Inflows of Resources 42,397 - - 297,417 Fund Balances: Nonspendable: Prepaid costs - 13,010 1,131 - Notes and loans 742 37 - - Deposits - - 465 - Restricted for: Community development projects 44,086 47,585 1,637,979 - Public safety - - - - Capital Projects - - - - Debt service - - - - Unassigned - - - (204,533) Fund Balance Total 44,828 60,632 1,639,575 (204,533) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 324,443$ 119,693$ 1,679,044$ 297,417$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 76 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Deposits Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Notes and loans Deposits Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) 701$ 9,477$ 225,275$ 1,771,790$ 28,671 39,277 15,366 122,215 - - - - 246 - - - - - 48 - - 2,501 - 5,597 - - - - - - - - - - - - 29,618$ 51,255$ 240,689$ 1,899,602$ 1,585$ 19,952$ 1,446$ 65,049$ 3,792 3,737 - 1,001 - - - 439,251 24,240 - - - - - - - 29,617 23,689 1,446 505,301 - - - 137,157 - - - 137,157 - 2,501 - 5,597 246 - - - - - - - - 25,065 - - - - - 1,251,547 - - 239,243 - - - - - (245) - - - 1 27,566 239,243 1,257,144 29,618$ 51,255$ 240,689$ 1,899,602$ Special Revenue Funds Senior Nutrition Public Benefit Program Air Quality Improvement Grants and Seizure 77 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Deposits Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Notes and loans Deposits Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) 42,450$ -$ 654,924$ -$ - - 2,085 - - - 7,342 - - - - - - - 176 - - - - 711 - - - - - - - - - - - - 42,450$ -$ 664,527$ 711$ -$ -$ 3,283$ -$ - - 4,520 - 2,578 - - - - - - 711 - - - - 2,578 - 7,803 711 - - - - - - - - - - - - - - - - - - - - - - - - 39,872 - - - - - 656,724 - - - - - - - - - 39,872 - 656,724 - 42,450$ -$ 664,527$ 711$ Special Revenue Funds Supplemental Law Enforcement Fire Safety Monrovia Nursery Employee Benefits 78 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Deposits Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Notes and loans Deposits Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) 852,364$ 1,494,772$ -$ 1,111,178$ - 39,148 - - - - - - - - - - - 331 - 233 - - - - - - - - - - - - - - - - 852,364$ 1,534,251$ -$ 1,111,411$ 376,068$ -$ 36$ 11,771$ - - - 5,213 - - - - - - 172,056 - - - - - 376,068 - 172,092 16,984 - - - - - - - - - - - - - - - - - - - - - 1,534,251 - - - - - - 476,296 - - 1,094,427 - - - - - - (172,092) - 476,296 1,534,251 (172,092) 1,094,427 852,364$ 1,534,251$ -$ 1,111,411$ Special Revenue Funds Utility Mitigation Highway 39 LACMTA Measure R 79 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Deposits Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Notes and loans Deposits Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) 384,350$ 495,288$ 4,555$ 719,166$ 7,967 - - - - - - - - - - - - 109 1 - - - - - - - - - - - - 30,834 - - - - 392,317$ 495,397$ 4,556$ 750,000$ 2,899$ -$ -$ -$ 387 - - - - - - - - - - - - - - 750,000 3,286 - - 750,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 389,031 495,397 4,556 - - - - - - - - - 389,031 495,397 4,556 - 392,317$ 495,397$ 4,556$ 750,000$ Special Revenue Funds Capital Projects Funds AB939 Fee Rosedale Traffic Mitigation Park in-lieu Capital Projects 80 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs Deposits Restricted assets: Cash and investments Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Notes and loans Deposits Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances Capital Projects Funds Total Governmental Funds 592,586$ -$ 10,237,215$ - - 601,021 - - 103,773 - 2,785,000 2,869,762 136 8 1,455 - - 22,950 - - 465 - - 30,834 - 482,620 482,620 592,722$ 3,267,628$ 14,350,095$ 6,339$ -$ 721,759$ - - 63,379 - - 542,256 - - 358,801 - - 750,000 6,339 - 2,436,195 - 2,785,000 3,261,971 - 2,785,000 3,261,971 - - 22,239 - - 1,025 - - 465 586,383 - 3,875,349 - - 1,291,419 - - 3,355,674 - 482,628 482,628 - - (376,870) 586,383 482,628 8,651,929 592,722$ 3,267,628$ 14,350,095$ Debt Service Funds Public Works Endowment Public Financing Authority 81 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes -$ 760,369$ 630,931$ -$ Intergovernmental 1,106,994 143,654 - 181,981 Charges for services - 17,180 89,196 - Use of money and property 3,366 (684) 9,737 - Contributions - - - - Miscellaneous 28 - 49 2,622 Total Revenues 1,110,388 920,519 729,913 184,603 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - 394,465 Parks and recreation 48,295 - - - Public works 1,374,368 687,697 444,905 - Capital outlay 776,004 - 63,603 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,198,667 687,697 508,508 394,465 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,088,279) 232,822 221,405 (209,862) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses)- - - - Net Change in Fund Balances (1,088,279) 232,822 221,405 (209,862) Fund Balances, Beginning of Year 1,133,107 (172,190) 1,418,170 (10,273) Restatements - - - 15,602 Fund Balances, Beginning of Year, as Restated 1,133,107 (172,190) 1,418,170 5,329 Fund Balances, End of Year 44,828$ 60,632$ 1,639,575$ (204,533)$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 82 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ 116,828 - 56,236 882,328 - 651,992 14,859 84,100 - 2,062 1,289 7,589 44,672 - - 4,667 30,221 - - 8,547 191,721 654,054 72,384 987,231 - 156,484 - 96,379 - - - 173,992 - 1,017,471 - - 325,325 - - 23,845 - - 35,081 84,876 - 197,873 - 610,383 - - - - - - - - 325,325 1,371,828 35,081 989,475 (133,604) (717,774) 37,303 (2,244) 133,605 - - 2,489 - - - (2,467) 133,605 - - 22 1 (717,774) 37,303 (2,222) - 745,340 201,940 1,259,366 - - - - - 745,340 201,940 1,259,366 1$ 27,566$ 239,243$ 1,257,144$ Public Benefit Program Air Quality Improvement Grants and Seizure Special Revenue Funds Senior Nutrition 83 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year -$ -$ -$ -$ 97,422 - - - - 76,281 466,651 - 279 - 4,793 - - - - - - - - - 97,701 76,281 471,444 - - - - 29,694 97,422 3,970,523 - - - - - - - - - - - - 223,747 - - - 2,285 - - - - - - - - - 97,422 3,970,523 226,032 29,694 279 (3,894,242) 245,412 (29,694) - 3,894,242 - 29,694 - - (286,644) - - 3,894,242 (286,644) 29,694 279 - (41,232) - 39,593 - 804,754 - - - (106,798) - 39,593 - 697,956 - 39,872$ -$ 656,724$ -$ Monrovia Nursery Employee Benefits Supplemental Law Enforcement Fire Safety Special Revenue Funds 84 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year (CONTINUED) -$ -$ -$ 472,462$ - - - - - - - - - 9,364 (472) 6,389 - - - - - 39,148 - - - 48,512 (472) 478,851 - 10,681 - - - - - - - - - - - - - - 376,068 - - 305,693 - - 230,471 - - - - - - - - - 376,068 10,681 230,471 305,693 (376,068) 37,831 (230,943) 173,158 111,348 - - - - - - - 111,348 - - - (264,720) 37,831 (230,943) 173,158 741,016 1,496,420 58,851 921,269 - - - - 741,016 1,496,420 58,851 921,269 476,296$ 1,534,251$ (172,092)$ 1,094,427$ Measure R Utility Mitigation Highway 39 LACMTA Special Revenue Funds 85 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ - - 1,350 - 196,313 - - - - 3,274 23 - - - - - - - - - 196,313 3,274 1,373 - - - - - - - - - - - - - - - - - 110,352 - - - - - - - - - - - - - - - 110,352 - - - 85,961 3,274 1,373 - - - - 2,000 - - - - - - - 2,000 85,961 3,274 1,373 2,000 303,070 492,123 3,183 (2,000) - - - - 303,070 492,123 3,183 (2,000) 389,031$ 495,397$ 4,556$ -$ Capital Projects Park in-lieu AB939 Fee Rosedale Traffic Mitigation Special Revenue Funds Capital Projects Funds 86 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as Restated Fund Balances, End of Year Capital Projects Funds Total Nonmajor Governmental Funds -$ -$ 1,863,762$ - - 2,586,793 - - 1,596,572 4,852 144 52,005 - - 49,339 - - 80,615 4,852 144 6,229,086 - 6,475 299,713 - - 4,241,937 - - 1,411,936 - - 397,465 - - 3,642,787 384,817 - 2,265,436 - 240,000 240,000 - 119,650 119,650 384,817 366,125 12,618,924 (379,965) (365,981) (6,389,838) - 366,187 4,539,565 - (136) (289,247) - 366,051 4,250,318 (379,965) 70 (2,139,520) 966,348 482,558 10,882,645 - - (91,196) 966,348 482,558 10,791,449 586,383$ 482,628$ 8,651,929$ Public Financing Authority Public Works Endowment Debt Service Funds 87 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE STATE GASOLINE TAX YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,133,107$ 1,133,107$ 1,133,107$ -$ Resources (Inflows): Intergovernmental 1,239,050 1,339,477 1,106,994 (232,483) Use of money and property 20,000 20,000 3,366 (16,634) Miscellaneous - - 28 28 Transfers in 89,000 89,000 - (89,000) Amounts Available for Appropriation 2,481,157 2,581,584 2,243,495 (338,089) Charges to Appropriation (Outflow): Parks and recreation 59,000 59,000 48,295 10,705 Public works 1,336,165 1,336,745 1,374,368 (37,623) Capital outlay - 891,647 776,004 115,643 Total Charges to Appropriations 1,395,165 2,287,392 2,198,667 88,725 Budgetary Fund Balance, June 30 1,085,992$ 294,192$ 44,828$ (249,364)$ 88 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION A YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (172,190)$ (172,190)$ (172,190)$ -$ Resources (Inflows): Taxes 703,395 703,395 760,369 56,974 Intergovernmental 60,000 60,000 143,654 83,654 Charges for services 20,245 20,245 17,180 (3,065) Use of money and property 7,035 7,035 (684) (7,719) Amounts Available for Appropriation 618,485 618,485 748,329 129,844 Charges to Appropriation (Outflow): Public works 907,090 907,090 687,697 219,393 Total Charges to Appropriations 907,090 907,090 687,697 219,393 Budgetary Fund Balance, June 30 (288,605)$ (288,605)$ 60,632$ 349,237$ 89 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION C YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,418,170$ 1,418,170$ 1,418,170$ -$ Resources (Inflows): Taxes 583,450 583,450 630,931 47,481 Charges for services 83,370 83,370 89,196 5,826 Use of money and property 12,185 12,185 9,737 (2,448) Miscellaneous - - 49 49 Amounts Available for Appropriation 2,097,175 2,097,175 2,148,083 50,908 Charges to Appropriation (Outflow): Public works 607,380 607,380 444,905 162,475 Capital outlay - 128,778 63,603 65,175 Total Charges to Appropriations 607,380 736,158 508,508 227,650 Budgetary Fund Balance, June 30 1,489,795$ 1,361,017$ 1,639,575$ 278,558$ 90 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 5,329$ 5,329$ 5,329$ -$ Resources (Inflows): Intergovernmental 469,140 492,235 181,981 (310,254) Miscellaneous - - 2,622 2,622 Amounts Available for Appropriation 474,469 497,564 189,932 (307,632) Charges to Appropriation (Outflow): Community development 469,185 492,235 394,465 97,770 Capital outlay - 224,300 - 224,300 Total Charges to Appropriations 469,185 716,535 394,465 322,070 Budgetary Fund Balance, June 30 5,284$ (218,971)$ (204,533)$ 14,438$ 91 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SENIOR NUTRITION YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 112,600 112,600 116,828 4,228 Contributions 74,000 74,000 44,672 (29,328) Miscellaneous - - 30,221 30,221 Transfers in 136,560 141,310 133,605 (7,705) Amounts Available for Appropriation 323,160 327,910 325,326 (2,584) Charges to Appropriation (Outflow): Parks and recreation 323,160 327,910 325,325 2,585 Total Charges to Appropriations 323,160 327,910 325,325 2,585 Budgetary Fund Balance, June 30 -$ -$ 1$ 1$ 92 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC BENEFIT PROGRAM YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 745,340$ 745,340$ 745,340$ -$ Resources (Inflows): Charges for services 625,640 625,640 651,992 26,352 Use of money and property 27,000 27,000 2,062 (24,938) Amounts Available for Appropriation 1,397,980 1,397,980 1,399,394 1,414 Charges to Appropriation (Outflow): General government 330,950 260,570 156,484 104,086 Community development 1,088,000 1,009,595 1,017,471 (7,876) Capital outlay 6,620 202,405 197,873 4,532 Total Charges to Appropriations 1,425,570 1,472,570 1,371,828 100,742 Budgetary Fund Balance, June 30 (27,590)$ (74,590)$ 27,566$ 102,156$ 93 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 201,940$ 201,940$ 201,940$ -$ Resources (Inflows): Intergovernmental 53,820 53,820 56,236 2,416 Charges for services 25,000 25,000 14,859 (10,141) Use of money and property 5,000 5,000 1,289 (3,711) Amounts Available for Appropriation 285,760 285,760 274,324 (11,436) Charges to Appropriation (Outflow): Public works 48,705 48,705 35,081 13,624 Total Charges to Appropriations 48,705 48,705 35,081 13,624 Budgetary Fund Balance, June 30 237,055$ 237,055$ 239,243$ 2,188$ 94 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE GRANTS AND SEIZURE YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,259,366$ 1,259,366$ 1,259,366$ -$ Resources (Inflows): Intergovernmental 1,927,180 3,376,198 882,328 (2,493,870) Charges for services - - 84,100 84,100 Use of money and property 6,170 6,170 7,589 1,419 Contributions 33,935 34,225 4,667 (29,558) Miscellaneous 4,400 4,400 8,547 4,147 Transfers in 38,220 38,220 2,489 (35,731) Amounts Available for Appropriation 3,269,271 4,718,579 2,249,086 (2,469,493) Charges to Appropriation (Outflow): General government 521,200 636,200 96,379 539,821 Public safety 228,890 230,740 173,992 56,748 Parks and recreation 36,500 39,315 23,845 15,470 Public works 60,400 132,583 84,876 47,707 Capital outlay 67,700 1,598,805 610,383 988,422 Transfers out 38,220 38,220 2,467 35,753 Total Charges to Appropriations 952,910 2,675,863 991,942 1,683,921 Budgetary Fund Balance, June 30 2,316,361$ 2,042,716$ 1,257,144$ (785,572)$ 95 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SUPPLEMENTAL LAW ENFORCEMENT YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 39,593$ 39,593$ 39,593$ -$ Resources (Inflows): Intergovernmental 100,000 100,000 97,422 (2,578) Use of money and property - - 279 279 Amounts Available for Appropriation 139,593 139,593 137,294 (2,299) Charges to Appropriation (Outflow): Public safety 103,635 103,635 97,422 6,213 Capital outlay 45,100 45,100 - 45,100 Total Charges to Appropriations 148,735 148,735 97,422 51,313 Budgetary Fund Balance, June 30 (9,142)$ (9,142)$ 39,872$ 49,014$ 96 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE FIRE SAFETY YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Charges for services 90,000 90,000 76,281 (13,719) Transfers in 3,926,950 3,926,950 3,894,242 (32,708) Amounts Available for Appropriation 4,016,950 4,016,950 3,970,523 (46,427) Charges to Appropriation (Outflow): Public safety 4,016,950 4,016,950 3,970,523 46,427 Total Charges to Appropriations 4,016,950 4,016,950 3,970,523 46,427 Budgetary Fund Balance, June 30 -$ -$ -$ -$ 97 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MONROVIA NURSERY YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 697,956$ 697,956$ 697,956$ -$ Resources (Inflows): Charges for services 365,000 365,000 466,651 101,651 Use of money and property 30,000 30,000 4,793 (25,207) Amounts Available for Appropriation 1,092,956 1,092,956 1,169,400 76,444 Charges to Appropriation (Outflow): Public works 246,845 314,935 223,747 91,188 Capital outlay - - 2,285 (2,285) Transfers out 286,410 286,410 286,644 (234) Total Charges to Appropriations 533,255 601,345 512,676 88,669 Budgetary Fund Balance, June 30 559,701$ 491,611$ 656,724$ 165,113$ 98 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFITS YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Transfers in (24,195) (24,195) 29,694 53,889 Amounts Available for Appropriation (24,195) (24,195) 29,694 53,889 Charges to Appropriation (Outflow): General government 24,195 29,695 29,694 1 Total Charges to Appropriations 24,195 29,695 29,694 1 Budgetary Fund Balance, June 30 (48,390)$ (53,890)$ -$ 53,890$ 99 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE UTILITY MITIGATION YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 741,016$ 741,016$ 741,016$ -$ Resources (Inflows): Transfers in (200,000) (200,000) 111,348 311,348 Amounts Available for Appropriation 541,016 541,016 852,364 311,348 Charges to Appropriation (Outflow): Public works - 430,000 376,068 53,932 Total Charges to Appropriations - 430,000 376,068 53,932 Budgetary Fund Balance, June 30 541,016$ 111,016$ 476,296$ 365,280$ 100 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE LACMTA YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 58,851$ 58,851$ 58,851$ -$ Resources (Inflows): Use of money and property 6,000 6,000 (472) (6,472) Amounts Available for Appropriation 64,851 64,851 58,379 (6,472) Charges to Appropriation (Outflow): Capital outlay - 232,158 230,471 1,687 Total Charges to Appropriations - 232,158 230,471 1,687 Budgetary Fund Balance, June 30 64,851$ (167,307)$ (172,092)$ (4,785)$ 101 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MEASURE R YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 921,269$ 921,269$ 921,269$ -$ Resources (Inflows): Taxes 437,600 487,600 472,462 (15,138) Use of money and property - - 6,389 6,389 Amounts Available for Appropriation 1,358,869 1,408,869 1,400,120 (8,749) Charges to Appropriation (Outflow): Public works 225,870 524,870 305,693 219,177 Capital outlay - 155,000 - 155,000 Total Charges to Appropriations 225,870 679,870 305,693 374,177 Budgetary Fund Balance, June 30 1,132,999$ 728,999$ 1,094,427$ 365,428$ 102 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AB939 FEE YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 303,070$ 303,070$ 303,070$ -$ Resources (Inflows): Charges for services 200,000 200,000 196,313 (3,687) Use of money and property 3,000 3,000 - (3,000) Amounts Available for Appropriation 506,070 506,070 499,383 (6,687) Charges to Appropriation (Outflow): Public works 150,975 150,975 110,352 40,623 Transfers out 14,775 14,775 - 14,775 Total Charges to Appropriations 165,750 165,750 110,352 55,398 Budgetary Fund Balance, June 30 340,320$ 340,320$ 389,031$ 48,711$ 103 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC WORKS ENDOWMENT YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 966,348$ 966,348$ 966,348$ -$ Resources (Inflows): Use of money and property - - 4,852 4,852 Amounts Available for Appropriation 966,348 966,348 971,200 4,852 Charges to Appropriation (Outflow): Capital outlay - 401,503 384,817 16,686 Total Charges to Appropriations - 401,503 384,817 16,686 Budgetary Fund Balance, June 30 966,348$ 564,845$ 586,383$ 21,538$ 104 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 482,558$ 482,558$ 482,558$ -$ Resources (Inflows): Use of money and property 100 100 144 44 Transfers in 364,275 364,275 366,187 1,912 Amounts Available for Appropriation 846,933 846,933 848,889 1,956 Charges to Appropriation (Outflow): General government 4,625 4,625 6,475 (1,850) Debt service: Principal retirement 240,000 240,000 240,000 - Interest and fiscal charges 119,650 119,650 119,650 - Transfers out - - 136 (136) Total Charges to Appropriations 364,275 364,275 366,261 (1,986) Budgetary Fund Balance, June 30 482,658$ 482,658$ 482,628$ (30)$ 105 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2013 Totals Assets: Current: Cash and investments 714,015$ 128,277$ 842,292$ Receivables: Accounts 327,708 439,985 767,693 Notes and loans 87 - 87 Accrued interest 357 - 357 Restricted: Cash with fiscal agent 4,367,478 - 4,367,478 Total Current Assets 5,409,645 568,262 5,977,907 Noncurrent: Capital assets - net of accumulated depreciation 8,455,567 - 8,455,567 Total Noncurrent Assets 8,455,567 - 8,455,567 Total Assets 13,865,212$ 568,262$ 14,433,474$ Liabilities and Net Position: Liabilities: Current: Accounts payable 588,520$ 461,657$ 1,050,177$ Accrued liabilities 25,707 - 25,707 Deposits payable 120,967 - 120,967 Accrued compensated absences 74,797 - 74,797 Bonds, notes, and capital leases 325,000 - 325,000 Total Current Liabilities 1,134,991 461,657 1,596,648 Noncurrent: Accrued compensated absences 36,794 - 36,794 Bonds, notes, and capital leases 5,080,000 - 5,080,000 Total Noncurrent Liabilities 5,116,794 - 5,116,794 Total Liabilities 6,251,785 461,657 6,713,442 Net Position: Net investment in capital assets 7,418,045 - 7,418,045 Unrestricted 195,382 106,605 301,987 Total Net Position 7,613,427 106,605 7,720,032 Total Liabilities and Net Position 13,865,212$ 568,262$ 14,433,474$ Business-Type Activities - Enterprise Funds Sewer/ Wastewater Refuse Contract 106 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Totals Operating Revenues: Sales and service charges 2,480,008$ 2,954,842$ 5,434,850$ Miscellaneous 5,561 7,648 13,209 Total Operating Revenues 2,485,569 2,962,490 5,448,059 Operating Expenses: Administration and general 1,136,987 - 1,136,987 Treatment 2,772,972 - 2,772,972 Refuse collection - 2,835,041 2,835,041 Claims expense 67,150 - 67,150 Depreciation expense 358,477 - 358,477 Total Operating Expenses 4,335,586 2,835,041 7,170,627 Operating Income (Loss)(1,850,017) 127,449 (1,722,568) Nonoperating Revenues (Expenses): Taxes - 556,161 556,161 Interest revenue 14,547 - 14,547 Interest expense (188,567) - (188,567) Special franchise fees (49,098) - (49,098) Total Nonoperating Revenues (Expenses)(223,118) 556,161 333,043 Income (Loss) Before Transfers (2,073,135) 683,610 (1,389,525) Transfers out (150,727) (675,410) (826,137) Changes in Net Position (2,223,862) 8,200 (2,215,662) Net Position: Beginning of Year, as originally reported 9,905,781 98,405 10,004,186 Restatements (68,492) - (68,492) Beginning of Fiscal Year, as restated 9,837,289 98,405 9,935,694 End of Fiscal Year 7,613,427$ 106,605$ 7,720,032$ Business-Type Activities - Enterprise Funds Sewer/ Wastewater Refuse Contract 107 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Totals Cash Flows from Operating Activities: Cash received from customers and users 2,414,331$ 2,932,667$ 5,346,998$ Cash paid to suppliers for goods and services (2,177,163) (2,838,664) (5,015,827) Cash paid to employees for services (1,117,440) - (1,117,440) Net Cash Provided by (Used in) Operating Activities (880,272) 94,003 (786,269) Cash Flows from Non-Capital Financing Activities: Cash transfers out (150,727) (675,410) (826,137) Net Cash Used in Non-Capital Financing Activities (150,727) (675,410) (826,137) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (4,683) - (4,683) Principal paid on capital debt (225,000) - (225,000) Interest paid on capital debt (188,567) - (188,567) Special franchise fees (49,098) - (49,098) Taxes - 556,161 556,161 Net Cash Provided by (Used in) Capital and Related Financing Activities (467,348) 556,161 88,813 Cash Flows from Investing Activities: Issuance of new loans 189 - 189 Interest received 15,195 - 15,195 Net Cash Provided by Investing Activities 15,384 - 15,384 Net Decrease in Cash and Cash Equivalents (1,482,963) (25,246) (1,508,209) Cash and Cash Equivalents at Beginning of Year 6,564,456 153,523 6,717,979 Cash and Cash Equivalents at End of Year 5,081,493$ 128,277$ 5,209,770$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)(1,850,017)$ 127,449$ (1,722,568)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 358,477 - 358,477 (Increase) decrease in accounts receivable (71,238) (29,823) (101,061) Increase (decrease) in accounts payable 540,948 (3,623) 537,325 Increase (decrease) in accrued liabilities 1,044 - 1,044 Increase (decrease) in deposits payable 120,967 - 120,967 Increase (decrease) in compensated absences 19,547 - 19,547 Total Adjustments 969,745 (33,446) 936,299 Net Cash Provided by (Used in) Operating Activities (880,272)$ 94,003$ (786,269)$ Business-Type Activities - Enterprise Funds Sewer/ Wastewater Refuse Contract 108 THIS PAGE INTENTIONALLY LEFT BLANK 109 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2013 Assets: Current: Cash and investments 1,435,358$ 2,048,730$ 561$ 173,994$ Receivables: Accounts 10,049 2,639 96 - Notes and loans 3,531 984 - - Accrued interest 7,067 314 - 38 Prepaid costs 2,118 1,938 - - Total Current Assets 1,458,123 2,054,605 657 174,032 Noncurrent: Capital assets - net of accumulated depreciation 713,134 - 37,281 444,182 Total Noncurrent Assets 713,134 - 37,281 444,182 Total Assets 2,171,257$ 2,054,605$ 37,938$ 618,214$ Liabilities and Net Position: Liabilities: Current: Accounts payable 270,143$ 348,716$ 561$ -$ Accrued liabilities 63,822 1,876 - - Due to other funds - - 37,376 - Accrued compensated absences 211,602 1,354 - - Accrued claims and judgments - 1,195,450 - - Total Current Liabilities 545,567 1,547,396 37,937 - Noncurrent: Accrued compensated absences 64,565 3,849 - - Accrued claims and judgments - 929,813 - - Total Noncurrent Liabilities 64,565 933,662 - - Total Liabilities 610,132 2,481,058 37,937 - Net Position: Net investment in capital assets 713,134 - 37,281 444,182 Unrestricted 847,991 (426,453) (37,280) 174,032 Total Net Position 1,561,125 (426,453) 1 618,214 Total Liabilities and Net Position 2,171,257$ 2,054,605$ 37,938$ 618,214$ Equipment Replacement Governmental Activities - Internal Service Funds Consumer Services Self Insurance Central Services 110 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2013 Assets: Current: Cash and investments Receivables: Accounts Notes and loans Accrued interest Prepaid costs Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Accrued liabilities Due to other funds Accrued compensated absences Accrued claims and judgments Total Current Liabilities Noncurrent: Accrued compensated absences Accrued claims and judgments Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Totals -$ 340,023$ 3,998,666$ - 160 12,944 - - 4,515 - - 7,419 - 32,279 36,335 - 372,462 4,059,879 - - 1,194,597 - - 1,194,597 -$ 372,462$ 5,254,476$ -$ 69,938$ 689,358$ - 27,260 92,958 - - 37,376 - 72,992 285,948 - - 1,195,450 - 170,190 2,301,090 - 202,272 270,686 - - 929,813 - 202,272 1,200,499 - 372,462 3,501,589 - - 1,194,597 - - 558,290 - - 1,752,887 -$ 372,462$ 5,254,476$ Intra- Governmental Loan Fund Governmental Activities - Internal Service Funds IT Services 111 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Operating Revenues: Sales and service charges 6,355,694$ 2,254,467$ -$ -$ Miscellaneous - 276 - - Total Operating Revenues 6,355,694 2,254,743 - - Operating Expenses: Administration and general 5,194,960 2,019,774 2,655 - Source of supply 149,261 - - - Claims expense 529,269 1,019,735 - - Depreciation expense 123,443 - 3,746 138,660 Total Operating Expenses 5,996,933 3,039,509 6,401 138,660 Operating Income (Loss)358,761 (784,766) (6,401) (138,660) Nonoperating Revenues (Expenses): Interest revenue - 8,571 - 1,081 Total Nonoperating Revenues (Expenses)- 8,571 - 1,081 Income (Loss) Before Transfers and 358,761 (776,195) (6,401) (137,579) extraordinary items Transfers in 140,140 - 12,479 - Transfers out (498,902) - - - Extraordinary gain/(loss)- (48,279) - - Changes in Net Position (1) (776,195) 6,078 (137,579) Net Position: Beginning of Year, as originally reported 1,561,126 398,021 (6,077) 755,793 Restatements - - - - Beginning of Fiscal Year, as restated 1,561,126 398,021 (6,077) 755,793 End of Fiscal Year 1,561,125$ (426,453)$ 1$ 618,214$ Equipment Replacement Governmental Activities - Internal Service Funds Consumer Services Self Insurance Central Services 112 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 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 Total Nonoperating Revenues (Expenses) Income (Loss) Before Transfers and extraordinary items Transfers in Transfers out Extraordinary gain/(loss) Changes in Net Position Net Position: Beginning of Year, as originally reported Restatements Beginning of Fiscal Year, as restated End of Fiscal Year Totals -$ 1,765,849$ 10,376,010$ - 10,974 11,250 - 1,776,823 10,387,260 - 1,557,737 8,775,126 - 216,582 365,843 - - 1,549,004 - - 265,849 - 1,774,319 10,955,822 - 2,504 (568,562) - - 9,652 - - 9,652 - 2,504 (558,910) - - 152,619 - - (498,902) (21,304,873) - (21,353,152) - 2,504 (905,193) 22,154,005 (2,504) 24,860,364 (849,132) - (849,132) 21,304,873 (2,504) 24,011,232 -$ -$ 1,752,887$ Intra- Governmental Loan Fund Governmental Activities - Internal Service Funds IT Services 113 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Cash Flows from Operating Activities: Cash received from customers and users 6,347,226$ 2,250,166$ -$ -$ Cash paid to suppliers for goods and services (634,281) (619,154) (4,798) - Cash paid to employees for services (5,163,021) (2,016,199) (2,655) - Net Cash Provided by (Used in) Operating Activities 549,924 (385,187) (7,453) - Cash Flows from Non-Capital Financing Activities: Cash transfers out (498,902) - - - Cash transfers in 140,140 - 12,479 - Repayment made to other funds - - (4,465) - Net Cash Provided by (Used in) Non-Capital Financing Activities (358,762) - 8,014 - Cash Flows from Investing Activities: Repayment of loans (2,006) - - - Issuance of new loans 2,326 - - Interest received 6,352 9,042 - 1,115 Net Cash Provided by (Used in) Investing Activities 4,346 11,368 - 1,115 Net Increase (Decrease) in Cash and Cash Equivalents 195,508 (373,819) 561 1,115 Cash and Cash Equivalents at Beginning of Year 1,239,850 2,422,549 - 172,879 Cash and Cash Equivalents at End of Year 1,435,358$ 2,048,730$ 561$ 173,994$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)358,761$ (784,766)$ (6,401)$ (138,660)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 123,443 - 3,746 138,660 (Increase) decrease in accounts receivable (6,535) (2,639) (96) - (Increase) decrease in prepaid expense (1,933) (1,938) - - Increase (decrease) in accounts payable 65,847 22,579 (3,992) - Increase (decrease) in accrued liabilities (20,175) (23,670) (710) - Increase (decrease) in deposits payable (1,423) - - - Increase (decrease) in claims and judgments - 401,672 - - Increase (decrease) in compensated absences 31,939 3,575 - - Total Adjustments 191,163 399,579 (1,052) 138,660 Net Cash Provided by (Used in) Operating Activities 549,924$ (385,187)$ (7,453)$ -$ Governmental Activities - Internal Service Funds Consumer Services Self Insurance Central Services Equipment Replacement 114 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 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 by (Used in) Operating Activities Cash Flows from Non-Capital Financing Activities: Cash transfers out Cash transfers in Repayment made to other funds Net Cash Provided by (Used in) Non-Capital Financing Activities Cash Flows from Investing Activities: Repayment of loans Issuance of new loans Interest received Net Cash Provided by (Used in) Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in deposits payable Increase (decrease) in claims and judgments Increase (decrease) in compensated absences Total Adjustments Net Cash Provided by (Used in) Operating Activities Totals -$ 1,762,396$ 10,359,788$ - (210,073) (1,468,306) - (1,512,845) (8,694,720) - 39,478 196,762 - - (498,902) - - 152,619 - - (4,465) - - (350,748) - - (2,006) - 3,578 5,904 - - 16,509 - 3,578 20,407 - 43,056 (133,579) - 296,967 4,132,245 -$ 340,023$ 3,998,666$ -$ 2,504$ (568,562)$ - - 265,849 - 243 (9,027) - (14,670) (18,541) - 19,018 103,452 - (12,509) (57,064) - - (1,423) - - 401,672 - 44,892 80,406 - 36,974 765,324 -$ 39,478$ 196,762$ IT Services Governmental Activities - Internal Service Funds Intra- Governmental Loan Fund 115 CITY OF AZUSA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2013 Balance Balance 7/1/2012 Additions Deductions 6/30/2013 Deposit Trust Assets: Pooled cash and investments 4,927,533$ 10,981,848$ 8,636,317$ 7,273,064$ Receivables: Accounts 609 762 609 762 Taxes 975,188 132,878 975,188 132,878 Total Assets 5,903,330$ 11,115,488$ 9,612,114$ 7,406,704$ Liabilities: Accounts payable 5,866,701$ 10,200,384$ 8,703,126$ 7,363,959$ Accrued liabilities 4,878 5,666 5,597 4,947 Deposits payable 22,706 33,048 30,396 25,358 Due to other governments 9,045 17,190 13,795 12,440 Total Liabilities 5,903,330 $ 10,256,288 $ 8,752,914 $ 7,406,704 $ 116 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS WATER - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Water Operating Revenues: Residential sales 10,434,389$ Commercial sales 3,815,664 Industrial sales 2,621,551 Fees 175,850 Other revenue 4,593,891 Total Operating Revenues 21,641,345 Operating Expenses: Production 6,574,250 Transmission and distribution 1,028,050 Customer accounting and sales 4,071,769 Uncollectible accounts 62,877 Administrative and general 469,127 Depreciation 3,646,666 Total Operating Expenses 15,852,739 Operating Income (Loss)5,788,606 Nonoperating Revenues (Expenses): Interest revenue 120,491 Interest expense (2,981,340) Franchise and in-lieu-tax (374,184) Total Nonoperating Revenues (Expenses)(3,235,033) Net Income (Loss) Before Transfers 2,553,573 Transfers out (111,348) Net Income (Loss) Before Extraordinary Loss 2,442,225 Extraordinary Loss (1,221,413) Net Income 1,220,812 Net Assets: Beginning of Fiscal Year 54,420,506 Restatements (828,921) Beginning of Fiscal Year, as restated 53,591,585 End of Fiscal Year 54,812,397$ 117 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS LIGHT - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Light Operating Revenues: Sale/electricity - residential 12,191,958$ Sale/electricity - commercial and industrial 22,259,074 Sale/electricity - other 1,422,284 Sale/electricity - resale 6,472,990 Other revenue 46,783 Total Operating Revenues 42,393,089 Operating Expenses: Purchase power 29,119,312 Transmission/dispatching 3,157,698 Operation and maintenance 2,806,273 Uncollectible accounts 116,802 Administration general expenditures 3,800,805 Depreciation 1,246,025 Total Operating Expenses 40,246,915 Operating Income 2,146,174 Nonoperating Revenues (Expenses): Interest income 224,535 Interest expense (324,095) Franchise and in-lieu-tax (3,630,291) Gain (loss) on disposal of asset - Total Nonoperating Revenues (Expenses)(3,729,851) Net Income Before Transfers (1,583,677) Transfers Out (13,561) Net Income (Loss) Before Extraordinary Loss (1,597,238) Extraordinary Loss (12,130,357) Net Income (13,727,595) Net Assets: Beginning of Fiscal Year 58,886,218 Restatements (268,123) Beginning of Fiscal Year, as restated 58,618,095 End of Fiscal Year 44,890,500$ 118 Financial Trends 121-125 Revenue Capacity 126-135 Debt Capacity 136-142 Demographic and Economic Information 143-145 Operating Information 146-148 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. 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. 119 THIS PAGE INTENTIONALLY LEFT BLANK 120 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 20 1 3 Go v e r n m e n t a l a c t i v i t i e s : Ne t i n v e s m e n t i n c a p i t a l a s s e t s (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 $ 29 , 0 8 6 , 5 6 6 $ Re s t r i c t e d 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 8, 8 0 0 , 5 3 7 Un r e s t r i c t e d 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 ) 23 , 4 4 7 , 2 8 1 (1 0 , 0 5 8 , 1 0 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 n e t p o s i t i o n 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 $ 57 , 6 1 6 , 0 1 6 $ 27 , 8 2 8 , 9 9 8 $ Bu s i n e s s - t y p e a c t i v i t i e s : Ne t i n v e s m e n t i n c a p i t a l a s s e t s 48 , 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 4 , 1 6 9 $ 55 , 0 8 6 , 8 4 6 $ 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 11 , 5 5 4 , 3 0 2 Un r e s t r i c t e d 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 42 , 3 4 2 , 9 0 6 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 p o s i t i o n 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 4 , 0 0 6 $ 10 8 , 9 8 4 , 0 5 4 $ Pr i m a r y g o v e r n m e n t : Ne t i n v e s m e n t i n c a p i t a l a s s e t s 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 6 , 8 6 5 $ 84 , 1 7 3 , 4 1 2 $ Re s t r i c t e d 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 20 , 3 5 4 , 8 3 9 Un r e s t r i c t e d 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 76 , 9 1 1 , 9 2 5 32 , 2 8 4 , 8 0 1 To t a l p r i m a r y g o v e r n m e n t n e t p o s i t i o n 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 2 , 4 9 0 , 0 2 2 $ 13 6 , 8 1 3 , 0 5 2 $ 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 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 P o s i t i o n 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 121 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 20 1 3 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, 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 $ 2, 3 0 4 , 2 9 0 $ Pu b l i c S a f e t y 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 70 5 , 1 4 0 Co m m u n i t y d e v e l o p m e n t 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 2, 8 3 1 , 8 6 0 Pa r k s a n d r e c r e a t i o n 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 1, 0 9 0 , 7 7 1 Pu b l i c W o r k s 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 47 6 , 5 0 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 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 2, 1 2 1 , 6 3 8 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 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 2, 9 8 8 , 7 6 0 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 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 12 , 5 1 8 , 9 6 5 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 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 21 , 6 0 4 , 4 3 5 Li g h t 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 42 , 3 7 7 , 6 9 4 Se w e r / W a s t e w a t e r 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 2, 4 8 0 , 0 0 8 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 2, 9 5 4 , 8 4 2 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 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 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 69 , 4 1 6 , 9 7 9 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 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 $ 81 , 9 3 5 , 9 4 4 $ 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 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 $ 10 , 5 3 7 , 7 2 2 $ 9, 2 0 8 , 7 7 7 $ Pu b l i c s a f e t y 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 4 9 , 0 7 7 20 , 1 5 7 , 4 6 9 Co m m u n i t y d e v e l o p m e n t 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 7 2 , 4 0 1 3, 0 9 4 , 7 3 7 Pa r k s a n d r e c r e a t i o n 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 4 6 , 2 4 5 3, 8 2 3 , 5 9 7 Pu b l i c w o r k s 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 1 8 , 0 8 3 5, 2 1 0 , 4 6 5 In t e r e s t o n l o n g - t e r m d e b t 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 1, 3 6 2 , 3 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 ex p e n s e s 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 49 , 4 6 7 , 8 4 3 42 , 8 5 7 , 4 0 7 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 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 4 , 3 5 5 18 , 9 7 5 , 0 6 8 El e c t r i c 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 44 , 1 2 1 , 9 1 1 Se w e r / W a s t e w a t e r 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 4, 5 7 3 , 2 5 1 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 2, 8 3 5 , 0 4 1 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 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 5 , 1 5 4 70 , 5 0 5 , 2 7 1 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 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 2 , 8 8 2 , 9 9 7 11 3 , 3 6 2 , 6 7 8 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 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 7 , 7 5 0 , 9 4 5 ) (3 0 , 3 3 8 , 4 4 2 ) Bu s i n e s s - t y p e a c t i v i t i e s 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 1 0 , 4 3 4 (1 , 0 8 8 , 2 9 2 ) To t a l n e t r e v e n u e s ( e x p e n s e s ) (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 4 , 9 4 0 , 5 1 1 ) (3 1 , 4 2 6 , 7 3 4 ) 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 P o s i t i o n 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 ) Fi s c a l Y e a r 122 ( C o n t i n u e d ) 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 20 1 3 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 p o s i t i o n : 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 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 $ 8, 3 1 2 , 3 5 1 $ Tr a n s i e n t o c c u p a n c y t a x e s 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 22 4 , 3 5 9 Sa l e s t a x 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 6, 9 0 4 , 4 0 0 Fr a n c h i s e t a x e s 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 6, 5 2 6 , 4 9 6 Bu s i n e s s l i c e n s e s t a x e s 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 1, 9 8 3 , 6 3 4 Ut i l i t y U s e r s t a x 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 3, 3 0 5 , 5 4 5 Ot h e r t a x e s 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 1, 9 6 3 , 9 0 4 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, 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 25 , 2 2 4 In v e s t m e n t i n c o m e 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 16 6 , 6 7 4 Ot h e r g e n e r a l r e v e n u e s (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 ) 27 9 , 4 4 7 - - - - - - - - 59 , 9 3 3 , 8 3 2 (2 8 , 1 6 5 , 5 8 4 ) Tr a n s f e r s 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 1, 3 0 9 , 8 0 8 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 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 2, 8 3 6 , 2 5 8 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 55 6 , 1 6 1 In v e s t m e n t i n c o m e 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 11 5 , 3 8 0 Ga i n o n s a l e o f a s s e t s 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 ) (3 , 6 9 0 ) - - - - - - - - - (1 3 , 3 5 1 , 7 7 0 ) Tr a n s f e r s (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 ) (1 , 3 0 9 , 8 0 8 ) Mi s c e l l a n e o u s 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 35 9 , 5 7 3 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 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 ) (1 3 , 6 3 4 , 1 5 4 ) To t a l g e n e r a l r e v e n u e s 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 (1 0 , 7 9 7 , 8 9 6 ) Ch a n g e s i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s 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 ) 53 , 9 6 6 , 0 4 1 (2 7 , 5 0 2 , 1 8 4 ) Bu s i n e s s - t y p e a c t i v i t i e s 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 9 , 5 8 2 (1 4 , 7 2 2 , 4 4 6 ) To t a l p r i m a r y g o v e r n m e n t 11 , 5 6 9 , 5 3 1 $ 18 , 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 ) $ 55 , 4 2 5 , 6 2 3 $ (4 2 , 2 2 4 , 6 3 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 Ex t r a o r d i n a r y g a i n / ( l o s s ) 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 P o s i t i o n 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 ) Fi s c a l Y e a r 123 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 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 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 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 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 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 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 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 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 (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 ) 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 : 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 20 1 3 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 $ 20 , 9 9 3 , 6 7 3 $ Un a s s i g n e d (5 , 3 1 1 , 3 0 4 ) (5 , 8 1 7 , 3 1 2 ) (3 , 2 9 4 , 5 2 7 ) 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 $ 17 , 6 9 9 , 1 4 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 $ 23 , 7 2 9 $ Re s t r i c t e d 23 , 2 9 7 , 5 9 9 11 , 0 6 2 , 0 7 4 9, 0 0 5 , 0 7 0 Un a s s i g n e d (3 2 , 6 2 5 , 0 3 8 ) (1 8 7 , 4 6 7 ) (3 7 6 , 8 7 0 ) 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 $ 8, 6 5 1 , 9 2 9 $ 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 124 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 20 1 3 Re v e n u e s : Ta x e s 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 $ 29 , 1 8 0 , 3 8 2 $ As s e s s m e n t s 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 1, 6 0 5 , 0 2 8 Li c e n s e s a n d p e r m i t s 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 1, 3 6 9 , 9 0 1 In t e r g o v e r n m e n t a l 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 2, 8 5 6 , 2 1 0 Ch a r g e s f o r s e r v i c e s 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 3, 2 8 8 , 1 0 9 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, 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 15 7 , 0 2 2 Fi n e s a n d f o r f e i t u r e s 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 98 9 , 6 1 6 Co n t r i b u t i o n s 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 64 , 4 6 1 Mi s c e l l a n e o u s (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 38 4 , 3 8 2 To t a l R e v e n u e s 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 39 , 8 9 5 , 1 1 1 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 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 7, 1 6 8 , 7 0 7 Pu b l i c s a f e t y 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 20 , 0 7 7 , 8 6 8 Co m m u n i t y d e v e l o p m e n t 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 3, 0 5 3 , 9 5 0 Pa r k s a n d r e c r e a t i o n 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 3, 4 5 3 , 4 6 9 Pu b l i c W o r k s 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 4, 1 7 3 , 5 0 2 Ca p i t a l O u t l a y 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 2, 3 4 8 , 6 2 4 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 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 1, 4 7 9 , 3 6 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, 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 47 1 , 8 3 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 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 42 , 2 2 7 , 3 2 2 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 (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 ) (2 , 3 3 2 , 2 1 1 ) 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 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 6, 0 0 3 , 1 5 6 Tr a n s f e r o u t (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 ) (4 , 7 0 5 , 8 2 7 ) No t e s a n d l o a n s i s s u e d 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 ) 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 1, 2 9 7 , 3 2 9 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 (6 , 8 1 2 , 4 3 2 ) Ne t c h a n g e i n f u n d b a l a n c e s (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 $ (7 , 8 4 7 , 3 1 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 40 . 9 % 21 . 5 % 10 . 0 % 9. 4 % 11 . 3 % 11 . 2 % 17 . 1 % 19 . 0 % 10 . 3 % 4. 9 % 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 125 Fiscal Year Residential Commercial/ Industrial Other Total 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 2013 12,191,958 22,259,074 1,422,284 35,873,316 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 126 Fiscal Monthly Rate per Rate per Year Ended Base <250 >250 June 30 Rate kWh kWh 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 2013 3.81 0.1160 0.1487 NOTE: Source: City of Azusa Light & Water Department City of Azusa Table 6 - Electricity Rates Last Ten Fiscal Years 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. 127 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 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 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 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 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 % 1, 7 8 0 , 9 8 9 $ 4. 9 6 5 % 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % 85 6 , 3 7 3 2. 4 2 5 % 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 % - 0. 0 0 0 % 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 % 33 3 , 5 9 4 0. 9 4 5 % 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 % 65 1 , 2 3 3 1. 8 4 4 % 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 % 1, 2 0 6 , 1 6 5 3. 4 1 5 % 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 % 67 9 , 7 5 3 1. 9 2 5 % 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 % 64 2 , 5 6 0 1. 8 1 9 % 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 % - 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 % - 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 % - 0. 0 0 0 % 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 % 36 6 , 6 2 3 1. 0 3 8 % 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 % - 0. 0 0 0 % 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 % 1, 5 8 4 , 0 4 7 4. 4 8 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % 1, 0 6 4 , 2 4 1 3. 0 1 4 % 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 % 9, 1 6 5 , 5 7 8 $ 25 . 9 5 3 % 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 S i x F i s c a l Y e a r s 128 Last Ten Fiscal Years Type of Customer Fiscal Year Residential Commercial Industrial Total 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 2013 10,434,389 3,815,664 2,621,551 16,871,604 Source: City of Azusa Light & Water Department City of Azusa Table 8 - Water Sold by Type of Customer 129 Fiscal Monthly Rate per Rate per Year Ended Base 0-17 >17 Activity Rate CCF CCF 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 2013 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. 130 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 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 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 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 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 % 13 0 , 7 6 1 $ 0. 7 7 5 % 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 % - 0. 0 0 0 % 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 % 16 3 , 4 5 5 0. 9 6 9 % 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 % 39 0 , 3 7 2 2. 3 1 4 % 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 % 26 2 , 6 5 6 1. 5 5 7 % 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 % - 0. 0 0 0 % 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 % 49 , 1 3 3 0. 2 9 1 % 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 % 15 0 , 9 5 4 0. 8 9 5 % 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 % 16 7 , 6 8 4 0. 9 9 4 % 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 % - 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % 1, 1 5 5 , 2 2 7 6. 8 4 7 % 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 % 55 6 , 4 9 3 3. 2 9 8 % 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 % 13 2 , 6 5 8 0. 7 8 6 % 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 % - 0. 0 0 0 % 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 % - 0. 0 0 0 % 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 5 $ 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 % 3, 1 5 9 , 3 9 3 $ 18 . 7 2 6 % 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 S i x F i s c a l Y e a r s 131 Total Estimated Taxable Assessed Fiscal Year Total Taxable Direct Actual Value as a Ended Residential Commercial Other Assessed Tax Taxable Percentage of June 30 Property Property Property Value (1)Rate Value Actual Taxable Value 2004 1,313,356,908$ 203,738,328$ 648,734,065$ 2,165,829,301$ 0.35245 2,165,829,301$ 100.0% 2005 1,413,718,828 209,980,713 682,357,988 2,306,057,529 0.35734 2,306,057,529 100.0% 2006 1,665,689,906 222,919,189 690,365,185 2,578,974,280 0.34461 2,578,974,280 100.0% 2007 1,853,668,928 232,834,227 948,903,799 3,035,406,954 0.33843 3,035,406,954 100.0% 2008 2,039,800,874 252,133,001 935,399,744 3,227,333,619 0.31890 3,227,333,619 100.0% 2009 2,261,284,832 265,286,427 1,020,131,857 3,546,703,116 0.32698 3,546,703,116 100.0% 2010 2,149,538,213 282,164,446 1,008,117,565 3,439,820,224 0.33638 3,439,820,224 100.0% 2011 1,989,337,299 285,686,418 967,335,236 3,242,358,953 0.34228 3,242,358,953 100.0% 2012 2,006,514,504 284,699,041 907,262,608 3,198,476,153 0.34311 3,198,476,153 100.0% 2013 2,065,151,644 276,567,248 900,529,536 3,242,248,428 0.33678 3,242,248,428 100.0% NOTES: Exempt assessed values are not included in assessed value. Source: HdL Coren & Cone 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) 132 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 20 1 3 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 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ Re d e v e l o p m e n t A g e n c y 1. 0 5 9 4 1 1. 0 5 5 6 0 1. 0 4 9 5 3 0. 1 0 4 2 1 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. 0 1 8 0 0 (1 ) To t a l D i r e c t R a t e 0. 3 5 2 4 5 0. 3 5 7 3 4 0. 3 4 4 6 1 0. 3 3 8 4 3 0. 3 1 8 9 0 0. 3 2 6 9 8 0. 3 3 6 3 8 0. 3 4 2 2 8 0. 3 4 3 1 1 0. 3 3 6 7 8 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. 0 8 8 6 8 0. 0 8 3 3 4 0. 0 7 2 5 6 0. 0 7 8 9 6 0. 0 6 0 4 2 0. 0 3 6 0 3 0. 0 3 9 0 9 0. 0 5 6 9 5 0. 0 5 6 2 8 0. 0 4 6 4 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 4 1 0. 0 2 3 9 7 0. 0 2 5 1 6 0. 0 2 4 4 7 0. 0 2 5 9 0 Co u n t y D e t e n t i o n F a c 1 9 8 7 D e b t 0. 0 0 0 9 9 0. 0 0 0 9 2 0. 0 0 0 8 0 0. 0 0 0 6 6 - - - - - - Co v i n a V a l l e y U n i f i e d S c h o o l D i s t r i c t 0. 0 3 9 6 7 0. 0 3 7 4 5 0. 0 3 7 9 3 0. 0 8 4 1 9 0. 0 7 8 7 0 0. 0 7 8 6 3 0. 0 8 5 9 2 0. 0 9 0 0 3 0. 0 8 9 9 9 0. 0 9 5 0 0 Du a r t e U n i f i e d S c h o o l D i s t r i c t 0. 0 5 3 7 1 0. 0 6 4 0 9 0. 0 6 2 1 8 0. 0 6 6 3 3 0. 0 6 0 6 3 0. 0 6 7 3 9 0. 0 7 2 5 6 0. 0 7 5 4 2 0. 1 1 2 3 7 0. 1 2 6 5 7 Lo s A n g e l e s C o u n t y F l o o d C o n t r o l 0. 0 0 0 4 6 0. 0 0 0 2 5 0. 0 0 0 0 5 0. 0 0 0 0 5 - - - - - - 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 0 6 1 0 0. 0 0 5 8 0 0. 0 0 5 2 0 0. 0 0 4 7 0 0. 0 0 4 5 0 0. 0 0 4 3 0 0. 0 0 4 3 0 0. 0 0 3 7 0 0. 0 0 3 7 0 0. 0 0 3 5 0 Mt . S a n A n t o n i o C o l l e g e 0. 0 1 5 2 5 0. 0 1 4 7 3 0. 0 2 1 2 2 0. 0 2 5 3 0 0. 0 1 7 5 0 0. 0 2 3 3 3 0. 0 2 5 7 1 0. 0 2 6 3 6 0. 0 2 6 4 2 0. 0 2 8 9 6 SG V M W D S t a t e W a t e r B o n d 0. 0 3 7 1 0 0. 0 3 3 1 0 0. 0 3 3 1 0 0. 0 3 3 1 0 0. 0 3 3 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 To t a l T a x R a t e 0. 3 9 1 1 7 0. 4 1 4 7 4 0. 3 9 9 8 8 0. 4 4 6 0 6 0. 4 2 0 1 7 0. 4 1 2 4 0 0. 4 2 9 8 6 0. 4 5 5 9 3 0. 4 9 1 5 4 0. 5 0 4 6 5 (1 ) 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 al 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 . 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 al l t a 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 a m o u n t , p r o p e r t y o w n e r s a r e c h 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 th e p a y m e n t o f a n y v o t e r a p p r o v e d b o n d s . Ge n e r a l f u n d t a x r a t e s a r e r e 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 F u n d t a 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 al l i n d i v i d u a l d i r e c t r a t e s a p p l i e d by th e C i t y . T h e D i r e c t R a t e pe r c e n t a g e s p r e s e n t e d in th e c o l u m n s a b o v e is no t th e s u m of th e G e n e r a l C i t y R a t e an d th e R e d e v e l o p m e n t Ag 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 a r e a an d in c l u d e s o n l y r a 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 p r 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 . RD A di r e c t an d ov 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 to th e i n c r e m e n t a l pr 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 133 Table 13 - Principal Property Tax Payers (Top Ten) Current Year and Nine Years Ago 2013 2004 Percentage of Percentage of City City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Northrop Grumman Systems Corporation 113,673,776$ 3.51%130,472,577$ 6.02% Rainbird Corp/CA Div.43,141,253 1.33%35,561,681 1.64% Azusa Pacific University 32,272,432 1.00%16,401,871 0.76% PPF Industrial 823 8th Street 31,583,787 0.97%17,527,905 0.81% Rosedale Land Partners II LLC 26,025,708 0.80%- 0.00% Citrus Crossing Properties Fee 22,109,237 0.68%- 0.00% S & S Foods LLC 20,670,564 0.64%- 0.00% Costco Wholesale Corporation 19,142,113 0.59%17,374,843 0.80% Sam Menlo Trust 18,480,561 0.57%- 0.00% VPM Soldano Senior Village LP 16,017,740 0.49%- 0.00% Coastal Pacific Glen LLC - 0.00%29,141,059 1.35% Criterion Catalyst Company LP - 0.00%16,867,216 0.78% Reichhold Inc - 0.00%15,925,105 0.74% JAR Azusa Association LTD - 0.00%14,121,000 0.65% MCS Edgewood Center LLC - 0.00%13,888,932 0.64% 343,117,171$ 10.58%307,282,189$ 14.19% The amounts shown above include assessed value data for both the City and the Redevelopment Agency/Successor Agency. Source: HdL Coren & Cone City of Azusa 134 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 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% 2013 3,506,941 3,404,604 97.1%84,623 3,489,227 99.5% 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 135 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 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 4. 0 6 % (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 4. 2 5 % (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 4. 5 2 % (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 4. 5 7 % (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 4. 7 5 % 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 2. 9 9 % 10 . 7 3 % 20 1 3 10 , 4 0 3 , 6 4 4 2, 7 8 5 , 0 0 0 - (6 ) 4, 8 5 5 , 0 0 0 18 , 0 4 3 , 6 4 4 5, 4 0 5 , 0 0 0 2, 5 4 0 , 0 0 0 68 , 1 8 0 , 0 0 0 76 , 1 2 5 , 0 0 0 94 , 1 6 8 , 6 4 4 2. 9 0 % (5 ) (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 136 Fiscal Year Certificates Tax Percentage Debt per Ended of Allocation of Assessed City June 30 Participation Bonds Total Values Capita 2004 4,825,000$ 17,080,000$ 21,905,000$ 1.01%456 2005 4,525,000 25,366,416 29,891,416 1.30%620 2006 4,325,000 24,824,506 29,149,506 1.13%606 2007 4,120,000 24,271,206 28,391,206 0.94%589 2008 3,910,000 39,546,698 43,456,698 1.35%898 2009 3,695,000 57,056,201 60,751,201 1.71%1,246 2010 3,480,000 55,814,889 59,294,889 1.72%1,205 2011 3,255,000 54,768,014 58,023,014 1.79%1,245 2012 3,025,000 (1)3,025,000 0.09%64 2013 2,785,000 (1)2,785,000 0.09%(2) (1)The Redevelopment Agency dissolution by the State of California caused the tax allocation bonds to be transferred to the Successor Agency and is a fiduciary fund. (2)Data not available. Source: City of Azusa Finance Department CITY OF AZUSA Table 16 - Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years 137 Percentage Net Gross Bonded Applicable Bonded Debt Balance To City Debt APFA 2003 Lease Revenue COP 2,785,000$ 100 2,785,000$ Pension Bonds 4,855,000 100 4,855,000 Total Direct Debt 7,640,000 Metropolitan Water District 79,696,126$ 0.097 77,203.00$ Citrus CCD DS 2013 Refunding 13,130,000 15.114 1,984,412.00 Citrus CCD DS 2004 Series 2007B 34,195,000 15.114 5,168,085 Citrus CCD DS 2004 2009 Series C 29,870,302 15.114 4,514,469 Mount San Antonio Comm. College District 2001 Series A 2004B 4,225,000 0.027 1,130 Mount San Antonio Comm. College District 2005 Refunding 41,010,843 0.027 11,007 Mount San Antonio Comm. College District 2001, 2006 Ser C 78,755,000 0.027 21,072 Mount San Antonio Comm. College District 2001, 2008 Ser D 23,086,083 0.027 6,177 Azusa Unified School District 2010 Bonds 41,055,665 63.563 26,096,211 Azusa Unified School District 2002 Series 2007 2,078,763 63.563 1,317,795 Azusa Unified School District 2002 Series 2011 19,890,000 63.563 12,608,914 Covina Valley Unified School District 2001 Series B 17,956,055 0.255 45,858 Covina Valley Unified School District 2006 Series 2006 1,855,000 0.255 4,738 Covina Valley Unified School District 2007 and 2013 45,990,145 0.255 117,455 Covina Valley Unified School District 2001 Ref 2011 and 2013 53,695,000 0.255 137,133 Duarte Unified School District 1998 Series B 4,868,807 0.378 18,380 Duarte Unified School District 1998 Series C 5,103,051 0.378 19,265 Duarte Unified School District 1998 Series D 3,809,534 0.378 14,381 Duarte Unified School District 1998 Series E 13,342,314 0.378 50,369 Duarte Unified School District Refunding 1998, 2010 Series A 4,530,000 0.378 17,101 Duarte Unified School District 2010 Series A 15,995,204 0.378 60,384 Duarte Unified School District 2010 Series B 4,595,000 0.378 17,347 Total Overlapping Debt 52,308,886 Total Direct and Overlapping Debt 59,948,886$ 2012/13 Assessed Valuation: $2,500,596,132 after deducting $741,652,296 Incremental Value. Debt to Assess Valuation Ratios:Direct Debt 0.310% Overlapping Debt 2.090% Total Debt 2.400% Source: HdL Coren & Cone City of Azusa Table 17 - Direct and Overlapping Debt June 30, 2013 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. 138 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 20 1 3 As s e s s e d v a l u a t i o n 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 $ 2, 4 5 9 , 2 6 1 , 9 6 2 $ 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 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 61 4 , 8 1 5 , 4 9 1 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 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 92 , 2 2 2 , 3 2 4 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 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 $ 92 , 2 2 2 , 3 2 4 $ 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 (1 ) To t a l B o n d e d d e b t i s s u e d b y t h 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 o f p a r t i c i p a t i o n , t a x a l l o c a t i o n b o n d s , sp e c i a l a s s i g n m e n t b o n d s , r e v e n u e b o n d s p a y a b l e f r o m e n t e r p r i s e f u n d s , a n d p l e d g e m o r t g a g e re v e n u e s a n d r e v e n u e b o n d s i s s u e d b y e n 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 . Fi s c a l Y e a r 139 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 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 2013 21,761,836 19,208,263 2,553,573 320,000 2,819,064 3,139,064 0.81 (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 2004 -$ -$ -$ -$ -$ -$ - 2005 37,948,961 33,131,762 4,817,199 345,000 165,954 510,954 9.43 2006 39,512,551 37,582,546 1,930,005 400,000 101,658 501,658 3.85 2007 37,677,098 33,024,487 4,652,611 410,000 562,810 972,810 4.78 2008 39,265,400 37,135,024 2,130,376 425,000 527,038 952,038 2.24 2009 36,672,695 35,243,846 1,428,849 435,000 504,544 939,544 1.52 2010 37,562,799 38,114,209 (551,410) 455,000 481,021 936,021 (0.59) 2011 40,332,068 38,356,263 1,975,805 480,000 468,614 948,614 2.08 2012 41,100,126 35,401,103 5,699,023 505,000 443,151 948,151 6.01 2013 42,669,040 44,252,717 (1,583,677) 530,000 246,108 776,108 (2.04) (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 Ten Fiscal Years REVENUE BONDS - WATER FUND(1) CERTIFICATES OF PARTICIPATION AND REVENUE BONDS - ELECTRIC FUND (2) 140 Table 19 - Pledged Revenue Coverage Last Ten Fiscal Years (continued) Operating Debt Service Requirements Fiscal Year and Non-Net Revenue Ended Gross Operating Available for June 30 Revenues Expenses (1)Debt Service Principal Interest Total Coverage 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 2013 2,500,116 4,573,251 (2,073,135)225,000 188,568 413,568 (5.01) (1)Excludes interest and depreciation expense Source: City of Azusa Finance Department REVENUE BONDS - SEWER FUND CITY OF AZUSA 141 Debt Service Requirements Fiscal Year Ended Tax June 30 Increment Principal Interest Total Coverage 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 2013 4,660,561 1,235,000 3,091,833 4,326,833 1.08 (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 $9,022,800 of new Tax Allocation Bonds in 2005. CITY OF AZUSA Table 20 - Pledged Revenue Coverage Tax Allocation Bonds - Redevelopment Agency (Successor Agency) Last Ten Fiscal Years 142 Per Capita Calendar City County Personal Personal Unemployment Year Population Population (1)Income Income Rate 2003 47,072 9,979,600 681,232,000$ 14,472$ 7.6% 2004 48,022 10,107,451 730,067,000 15,203 7.1% 2005 48,189 10,226,506 766,560,000 15,907 5.8% 2006 48,127 10,245,572 815,960,000 16,954 5.2% 2007 48,191 10,331,939 850,576,000 17,650 5.5% 2008 48,399 10,363,850 862,032,000 17,811 8.1% 2009 48,755 10,393,185 843,804,000 17,307 12.6% 2010 49,207 10,441,080 871,702,000 17,715 13.7% 2011 46,618 9,889,520 854,741,000 18,335 13.3% 2012 47,586 9,958,091 882,863,000 18,553 10.1% Sources: HdL Coren & Cone, Los Angeles County Assessor (1) U.S. Department of Census and State Department of Finance CITY OF AZUSA Table 21 - Demographic and Economic Statistics Last Ten Calendar Years 143 City of Azusa Table 22 - Principal Employers Current Year and Nine Years Ago Percentage Percentage Number of of Total City Number of of Total City Employer Employees Rank Employment Employees Rank Employment Azusa Unified School District 1580 1 0.00%1600 1 8.38% Northrop Grumman 978 2 5.07%1400 2 7.33% City of Azusa 378 3 1.96%430 4 2.25% Costco Wholesale Corporation 325 4 1.68%290 6 0.00% Dostalek Construction Company 300 5 1.55%(2)0.00% S & S Foods LLC 250 6 1.30%200 7 0.00% Buena Vista Food Products 165 7 0.85%(2)0.00% Colorama Wholesale Nursery 152 8 0.79%(2)0.00% Target Store 141 9 0.73%(2)0.00% Hanson Distributing Company 135 10 0.70%(2)0.00% Artisan Screen 120 11 0.62%80 8 0.00% Ancra International LLC 106 12 0.55%(2)0.00% Morris National Candy 101 13 0.52%300 5 0.00% Azusa Pacific University (2)0.00%900 3 4.71% Total of Top Employers 4,731 16.33%5,200 22.49% Total Employees in City 19,300 (1)100 19,100 (1) Sources: Data from City of Azusa Business License Division unless noted. (1)California Employment Development Department (2)Data not available Source: City of Azusa Business License Division 2012-13 2003-04 144 by F u n c t i o n Fu n c t i o n 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 20 1 3 Ge n e r a l g o v e r n m e n t 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 33 . 5 9 3 Pu b l i c s a f e t y 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 97 . 5 7 0 Co m m u n i t y d e v e l o p m e n t 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 14 . 6 5 1 Pa r k s a n d r e c r e a t i o n 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 45 . 4 0 7 Pu b l i c w o r k s 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 30 . 2 6 5 Wa t e r 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 43 . 2 7 5 El e c t r i c 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 37 . 9 7 5 Se w e r / W a s t e w a t e r 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 9. 5 7 0 T o t a l 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 31 2 . 3 0 6 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 145 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 20 1 3 Po l i c e : Ca l l s f o r s e r v i c e 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 57 , 6 3 7 Pa r k i n g c i t a t i o n s i s s u e d 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 7, 6 8 0 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 ) 17 . 0 15 . 3 12 . 8 15 . 0 13 . 3 14 . 3 2. 5 6. 0 4. 2 4. 3 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 11 0 84 84 84 19 6 31 0 56 73 10 1 Nu m b e r o f f a c i l i t y r e n t a l s 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 87 4 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 , 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 (2 ) 22 , 9 6 3 (2 ) Av e r a g e d a i l y c o n s u m p t i o n 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 22 , 1 7 6 (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 , 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 (2 ) 15 , 9 0 3 (2 ) Av e r a g e d a i l y c o n s u m p t i o n 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 6 9 67 2 , 9 2 0 65 4 , 0 5 0 64 8 , 0 2 0 67 , 8 7 1 (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 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 (2 ) 15 , 3 7 4 (2 ) 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 , 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 (2 ) 11 , 6 5 2 (2 ) Av e r a g e d a i l y c o l l e c t i o n 15 1 15 7 15 8 10 9 11 4 12 2 18 4 17 7 17 8 14 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 (3 ) 20 1 3 d a t a c o n s i d e r s t h a t c u s t o m e r s o u t s i d e o f A z u s a a r e b i l l e d e v e r y 2 m o n t h 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 146 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 20 1 3 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 1 17 0 17 4 17 6 Tr a f f i c s i g n a l s 52 52 52 52 52 52 53 52 53 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 13 13 13 13 15 16 Pa r k a c r e a g e 52 55 58 58 60 61 61 61 64 64 Co m m u n i t y c e n t e r s 1 2 2 2 3 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 5 30 8 31 1 31 2 31 5 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, 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 2, 8 1 5 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 70 , 5 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 66 65 64 65 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 17 0 17 1 15 3 16 9 16 9 16 9 16 9 16 2 16 9 16 2 (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 61 61 61 61 61 61 61 80 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 16 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 60 (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 147 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, 2013 148