HomeMy WebLinkAboutAzusa CAFR FY1314-Final_201503251506200943
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CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
PREPARED BY FINANCE DEPARTMENT
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CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
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
Statement of Net Position - Proprietary Funds ............................................................................... 24
Statement of Revenues, Expenses and Changes in Fund Net
Assets - Proprietary Funds ............................................................................................................. 25
Statement of Cash Flows - Proprietary Funds ............................................................................... 26
Statement of Fiduciary Net Position - Fiduciary Funds .................................................................. 27
Statement of Changes in Fiduciary Net Position – Fiduciary Funds .............................................. 28
Notes to Financial Statements ........................................................................................................... 29
CITY OF AZUSA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information ................................................................................. 74
Budgetary Comparison Statement by Department - General Fund .................................................. 75
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
Measure R .................................................................................................................................... 101
AB939 Fee .................................................................................................................................... 102
Budgetary Comparison Schedules - Capital Projects Funds:
Park In-Lieu ................................................................................................................................... 103
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, 2014
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, 2014
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
January 28, 2015
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City of Azusa
ELECTED OFFICIALS AND DEPARTMENT HEADS
213 E. Foothill Boulevard
Azusa, CA 91702
(626) 812-5200
Fax (626) 334-6358
www.ci.azusa.ca.us
ELECTED OFFICIALS
TITLE TERM EXPIRATION
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 Mayor Pro-Tem March, 2017
Uriel Macias Councilmember March, 2015
DEPARTMENT HEADS TITLE PHONE NUMBER
James W. Makshanoff City Manager 626-812-5238
Tito Haes Director of Public Works/Assistant City Manager 626-812-5248
Kurt Christiansen Director of Economic & Community Development 626-812-5236
Sam Gonzalez Chief of Police 626-812-3250
Ann Graf Director of Information Technology and Library 626-812-5024/5277
Joe Jacobs Director of Recreation & Family Services 626-812-5220
George Morrow Director of Utilities 626-812-5219
Susan Paragas Director of Finance 626-812-5202
Theresa St. Peter Interim Director of Human Resources 626-812-5183
Daryl L. Osby Fire Chief 626-974-8371
City Attorney Best, Best, & Krieger (Marco Martinez) 949-263-2603
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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, 2014, 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, 2014, and,
the respective changes in financial position and, where applicable, and cash flows thereof 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
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the respective budgetary comparison for the General Fund 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, supplementary statement for water
and light enterprise funds 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 Honorable Mayor and Members of the City Council
City of Azusa, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 28, 2015 on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City’s internal control over financial
reporting and compliance.
Brea, California
January 28, 2015
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4
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
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, 2014. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages i through iv of this report. All amounts, unless otherwise indicated, are expressed in
whole dollars.
Financial Highlights
The assets of the City exceeded its liabilities at the close of fiscal year 2014 by $144,241,259 (net
position).
Total City assets of $277,971,359 include $157,093,769 or 56.5% of non-current assets attributed to
capital assets, net of depreciation.
Total City liabilities of $134,928,451 include $121,529,891 or 89.9% of long-term liabilities attributed
mainly to tax allocation bonds and certificates of participation.
As of June 30, 2014, the City’s governmental funds reported combined fund balances of
$29,525,901.
At the end of the current fiscal year, the total fund balance for the General Fund was increased by
$3,119,100 to $20,417,948.
Total General Fund revenues received for the year were $36,130,542 and total General Fund
expenditures for the year were $30,102,618, an excess of revenues over expenditures amounting to
$6,027,924. 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 and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
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, 2014
Both of the government-wide financial statements distinguish functions of the City of Azusa that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include General Government,
Public Safety, Community Development, Parks and Recreation, and Public Works. The business-type
activity of the City includes the City’s Water, Light, Sewer/Wastewater, and Refuse Contract Utility
operations.
The government-wide financial statements include not only the City of Azusa itself (known as the primary
government), but also the legally separate City of Azusa Redevelopment Agency and the Azusa Public
Financing Authority for which the City of Azusa is financially accountable. Financial information for these
component units has been included as an integral part of the primary government. Separate financial
statements are prepared for the City of Azusa Redevelopment Agency and may be obtained from the
City’s Administrative Services-Finance Division.
2) Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Azusa, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Azusa maintains 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, 2014
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 position and in the proprietary fund statement of revenues, expenditures, and changes in
net position for the Water and Light funds. The Water and Light funds are considered to be major funds.
The internal service funds are also presented in the proprietary fund financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government, and the City’s role is purely custodial. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not available to support
the City’s own programs. All assets reported in Fiduciary funds are offset by a liability; the accrual basis
of accounting is used to recognize receivables and payables.
3) Notes to the basic financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
Other supplementary information. The combining financial statements and schedules referred to
earlier in connection with non-major governmental funds and internal service funds are presented
immediately following the notes to the basic financial statements.
Government-wide Financial Analysis
The following table presents a summary of the City’s assets, liabilities and net 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.
2014 2013 2014 2013 2014 2013
Current and other assets 46,008,111$ 43,699,826$ 74,869,479$ 72,248,399$ 120,877,590$ 115,948,225$
Capital assets, net 29,959,431 29,086,566 127,134,338 127,071,246 157,093,769 156,157,812
Total assets 75,967,542 72,786,392 202,003,817 199,319,645 277,971,359 272,106,037
Deferred charge on refunding - - 1,198,351 1,258,269 1,198,351 1,258,269
Total deferred outflow of resources - - 1,198,351 1,258,269 1,198,351 1,258,269
Current liabilities 4,541,446 3,543,881 8,857,114 9,806,489 13,398,560 13,350,370
Long-term liabilities 42,030,353 41,413,513 79,499,538 81,787,371 121,529,891 123,200,884
Total liabilities 46,571,799 44,957,394 88,356,652 91,593,860 134,928,451 136,551,254
Net position:
Net investment in capital assets 29,959,431 29,086,566 58,465,869 55,086,846 88,425,300 84,173,412
Restricted 9,222,166 8,800,537 9,845,901 11,554,302 19,068,067 20,354,839
Unrestricted (9,785,854) (10,058,105) 46,533,746 42,342,906 36,747,892 32,284,801
Total net position 29,395,743$ 27,828,998$ 114,845,516$ 108,984,054$ 144,241,259$ 136,813,052$
City of Azusa - Summary of Net Position
Governmental Business Type
Activities Activities Total
As of June 30, 2014, the City’s assets exceeded liabilities by $144,241,259. This represents an increase
from the prior year and can be attributed to the increase in net investment for capital projects and a
decrease in long-term liabilities for business type as evidenced in the Proprietary Funds Statement of Net
Position. Increases in revenues resulted in a net position increase for the Water Fund $3,206,531 and
the Electric Fund $120,996.
7
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
In evaluating the net position in capital assets for both governmental and business-type activities in the
City of Azusa, $88,425,300 (61.3%) denotes net position invested in capital assets (net of related debt)
and $24,124,344 (16.7%) represents resources that are subject to external restrictions. The remaining
balance represents unrestricted net position of $31,691,615 (22.0 %).
The following chart shows the comparison of the three components of net position for Fiscal Years
2013-14 and 2012-13 (in millions)
Governmental activities. The following condensed summary of activities of the City’s governmental
activities for the year ended June 30, 2014 shows total net position equal $29,395,743, an increase of
$1,566,745 (7.07%) from the prior year. The primary increase is due to the increases in program
revenues and reductions in general government expenses. 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 $114,845,516, an increase of
$5,861,462 (5.4%) from the prior year. Key elements of the increase are due to program revenues and
decrease in Sewer/Wastewater expenses.
8
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
2014 2013 2014 2013 2014 2013
Program Revenues:
Charges for services 9,752,821$ 7,408,567$ 72,389,622$ 69,416,979$ 82,142,443$ 76,825,546$
Operating contributions
and grants 3,836,479 2,121,638 - - 3,836,479 2,121,638
Capital contributions
and grants 442,727 2,988,760 - - 442,727 2,988,760
General Revenues:
Taxes 29,315,094 29,220,689 542,409 556,161 29,857,503 29,776,850
Motor vehicle in lieu 20,876 25,224 - - 20,876 25,224
Investment earnings (423,898) 166,674 300,515 359,573 (123,383) 526,247
Gain on sale of assets - - - (3,690) - (3,690)
Miscellaneous 759,132 279,447 399,293 115,380 1,158,425 394,827
Total Revenues 43,703,231 42,210,999 73,631,839 70,444,403 117,335,070 112,655,402
Expenses:
General Government 8,843,327 9,208,777 - - 8,843,327 9,208,777
Public Safety 21,284,020 20,157,469 - - 21,284,020 20,157,469
Community Development 2,593,720 3,094,737 - - 2,593,720 3,094,737
Parks and Recreation 3,808,038 3,823,597 - - 3,808,038 3,823,597
Public Works 5,412,524 5,210,465 - - 5,412,524 5,210,465
Interest and Fiscal Charges 1,330,555 1,362,362 - - 1,330,555 1,362,362
Water - - 18,345,227 18,975,068 18,345,227 18,975,068
Light - - 45,011,550 44,121,911 45,011,550 44,121,911
Sewer/Wastewater - - 2,434,295 4,573,251 2,434,295 4,573,251
Refuse Contract - - 2,938,255 2,835,041 2,938,255 2,835,041
Total Expenses 43,272,184 42,857,407 68,729,327 70,505,271 112,001,511 113,362,678
Increase (decrease) in net position
before transfers 431,047 (646,408) 4,902,512 (60,868) 5,333,559 (707,276)
Transfers 1,535,996 1,309,808 (1,535,996) (1,309,808) - -
Extraordinary gain/loss on dissolution
of redevelopment agency - (28,165,584) - (13,351,770) - (41,517,354)
Change in Net Position 1,967,043 (27,502,184) 3,366,516 (14,722,446) 5,333,559 (42,224,630)
Net Position (Deficits) - Beginning 27,828,998 56,565,044 108,984,054 124,872,036 136,813,052 181,437,080
Restatement of Net Position (400,298) (1,233,862) 2,494,946 (1,165,536) 2,094,648 (2,399,398)
Net Position (Deficits) - Ending 29,395,743$ 27,828,998$ 114,845,516$ 108,984,054$ 144,241,259$ 136,813,052$
City of Azusa - Summary of Changes in Net Position (Deficits)
Governmental Business Type
Activities Activities Total
The City’s total revenues are $117,335,070 and the costs of all programs and services are $112,001,511.
Fiscal year 2013-14 revenues increased by $4,679,668 (4.2%). Expenses decreased by $1,361,167
(-1.2%) from prior year. Key factors include:
♦ The increase in the governmental activities revenue was mainly due to a rise in charges for
services from building permits and business license activities. It also included a one–time
reimbursement from the Successor Agency of approximately $360,000.
♦ The City experienced an increase in Franchise Fees and Utility User Tax related to increases in
Electric and Water Sales that experienced a 6.2% and 0.7% increases in sales and service
charges, respectively.
♦ Building revenues increased by $561,841 (14.9%) compared to FY 2012-13. The increase was
due to increased development in the City such as the construction of new housing in the
Rosedale housing development project.
♦ The materials recovery facility became operational during the second quarter of the fiscal year
and resulted in new revenues of $357,397.
9
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
Charges for services
22.3%
Contributions &
grants
9.8%
Property taxes
18.4%
Sales taxes
16.4%
Franchise taxes
15.5%
Business licenses
taxes
4.4%
Utility users taxes
3.2%
Other taxes
4.5%
Investment
earnings/other
0.8%
Revenues by Source-Governmental Activities
Year Ended June 30, 2014
Key elements of this year’s summary of activities are as follows:
Property tax revenue increased by $480,682, Sales tax revenue increased by a $95,344 and
Franchise fees increased by $241,662 from the prior year.
Charges for services revenue increased by $824,060; investment earnings decreased by $15,423
primarily due to continued low interest rates.
Fines and Forfeitures increased by $353,702 primarily due to a correction in the application of
late fee assessments for utility bills.
10
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
Total Governmental Activities expenses increased $414,777 (0.9%) over prior year.
Total General Government expenses decreased $364,450 (-3.9%) compared to prior year. The
reduction is mainly due to a non-election year and a decrease in public benefit program projects.
Community development expenditures decreased $501,017 (19.3%) primarily due to reductions
in capital and building 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 $29,525,901, an increase of $3,575,124 in comparison with the prior year’s revised fund
balance. Fund balance may be reserved to indicate that it is not available for new spending. This
includes $20,773,838 in land held for resale.
11
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2013-14, its fund
balance increased by $3,119,100, primarily as a result of the increased revenues, specifically attributable
to revenue increases in property taxes, building permits and penalties. In addition, expenses due to
reductions in salary expenses, election and interest costs. At the end of the current fiscal year, the
General Fund total fund balance was $20,417,948.
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 $40,530,486.
Total unrestricted net position increased by $4,091,838 (9.7%) and total net position increased by
$5,863,578 (5.5%) from the previous fiscal year.
Unrestricted net position of the City’s Water Utility at the end of the year amounted to $32,859,906 which
is an increase of $3,355,493 (11.4%) and total net position increased by $3,206,531 (5.9%) from the
previous fiscal year. Continued revenue surpluses and a decrease in cost of sales and services were
attributable to the favorable numbers.
Unrestricted net position of the City’s Light Utility at the end of the year amounted to $10,759,452. Total
unrestricted net position increased by $1,194,476 (10.2%) and total net position increased by $120,996
(0.3%) from the previous fiscal year. This positive change was primarily attributable to the increase in
revenues of sales and service charges.
The following chart highlights total revenue and total expenses for each of the business type activities for
fiscal year end June 30, 2014.
Water Light Sewer/
Wastewater Refuse Contract
Revenue $21.8 $45.0 $2.6 $3.1
Expenses $18.3 $45.0 $2.4 $2.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
12
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 27,352,225$ 26,684,225$ 27,289,357$ 605,132$
Charges for services 1,366,035 2,085,155 2,515,597 430,442
Assessments 2,259,605 2,159,605 2,216,830 57,225
Other revenue 2,198,280 2,714,945 4,108,758 1,393,813
Total revenue 33,176,145 33,643,930 36,130,542 2,486,612
EXPENDITURES
Operations 28,410,460 29,114,755 28,350,397 764,358
Debt Service 1,695,935 1,793,135 1,752,221 40,914
Total expenditures 30,106,395 30,907,890 30,102,618 805,272
Excess of revenues
over expenditures 3,069,750 2,736,040 6,027,924 1,681,340
OTHER FINANCING SOURCES (USES)
Transfers in 1,602,265 1,602,265 1,574,577 (27,688)
Transfers out 4,552,180 4,598,054 4,483,401 114,653
Total other financing sources (uses)(2,949,915) (2,995,789) (2,908,824) 86,965
Net change in fund balance 119,835 (259,749) 3,119,100 3,378,849
Fund balance beginning of year 17,298,848 17,298,848 17,298,848 -
Fund balance end of year $17,418,683 $17,039,099 $20,417,948 $3,378,849
City of Azusa - General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2014
Budgeted Amounts
The difference between the original expenditure budget and the final amended expenditure budget was
an increase of $801,495 with highlights as follows:
Community Development increased its outside services budget for plan checks due to the
overwhelming activities in housing construction and improvements.
Public Safety budget rose due to contract obligations and retirement costs. The increase in its
budget is also attributable to the transfer of an Information Technology fund division to the
General Fund within the Police department.
A rise in utility costs resulted in additional budget increases for most departments.
13
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
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, 2014 amounted to $157,093,769 (net of accumulated depreciation). This investment
includes land, construction in progress, land improvements, buildings and structures, machinery and
equipment, automotive equipment and infrastructure.
2014 2013 2014 2013 2014 2013
Land 1,319,536$ 1,319,536$ 2,988,973$ 2,988,973$ 4,308,509$ 4,308,509$
Construction in Progress 473,263 71,222 1,103,150 18,379 1,576,413 89,601
Land Improvements 1,452,132 1,579,399 459,293 498,355 1,911,425 2,077,754
Buildings and Structures 7,096,152 7,398,119 13,403,746 13,905,951 20,499,898 21,304,070
Machinery and Equipment 1,323,308 1,021,749 3,369,035 3,054,779 4,692,343 4,076,528
Automotive Equipment 623,704 660,885 404,868 509,263 1,028,572 1,170,148
Infrastructure 17,671,336 17,035,656 105,405,273 106,095,546 123,076,609 123,131,202
Total 29,959,431$ 29,086,566$ 127,134,338$ 127,071,246$ 157,093,769$ 156,157,812$
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 4 of the notes to the basic
financial statements.
Long-term debt. At the end of the current fiscal year, the City of Azusa had total debt outstanding of
$121,256,891. Of this amount, $41,757,353 is a liability of the Governmental Activities and $79,499,538
is a liability of the Business Type Activities.
2014 2013 2014 2013 2014 2013
Employee Leave Benefits 3,710,262$ 4,586,789$ 1,323,419$ 1,500,254$ 5,033,681$ 6,087,043$
Net OPEB Liability 10,383,609 8,372,606 - - 10,383,609 8,372,606
Advance from the Successor Agency 8,208,833 8,208,833 - - 8,208,833 8,208,833
2003 COPS 2,540,000 2,785,000 1,985,000 2,540,000 4,525,000 5,325,000
2006 Water Revenue Bonds - - 53,315,000 53,645,000 53,315,000 53,645,000
2008 Taxable Pension Fnding Bd 4,075,000 4,855,000 - - 4,075,000 4,855,000
2011 Sewer Installment Loan - - 5,080,000 5,405,000 5,080,000 5,405,000
2012 Electric Refunding Bond - - 5,820,000 5,820,000 5,820,000 5,820,000
2012 Water Refunding Bonds - - 8,045,000 8,715,000 8,045,000 8,715,000
Developer Agreements 10,700,656 10,403,644 - - 10,700,656 10,403,644
Claims and Judgments Payable 2,356,493 2,125,263 - - 2,356,493 2,125,263
Unamortized Premium/Discount 55,500 76,378 3,931,119 4,162,117 3,986,619 4,238,495
Total 42,030,353$ 41,413,513$ 79,499,538$ 81,787,371$ 121,529,891$ 123,200,884$
City of Azusa - Outstanding Debt
Governmental Business Type
Activities Activites Total
Additional information on the City’s long-term debt can be found in Note 5 of Notes to the Basic Financial
Statements.
14
City of Azusa
Management’s Discussion and Analysis
June 30, 2014
Economic Factors and Next Year’s Budgets and Rates
The revenue projections for the 2014-15 General Fund adopted budget reflected a growth of 4.6% over
the prior year’s final budget. Property taxes and building permit fees are anticipated to continue to rise
due to the increased housing values and the activities in the Rosedale housing development.
General Fund expenditures, including transfers out and capital outlay, rose by 3.9% for the 2013-14
adopted budget. Contractual obligations, retirement costs and capital outlay were the primary cause of
the increase.
The City strives to maintain high quality services while adopting a balanced budget. For fiscal year
2014-15, the City adopted a balanced budget with a surplus of $129,210 for the General Fund without
any reductions in services.
Rising retirement costs, such as pension and retiree health care, are main concerns for the City. In
addition, the State’s dissolution of redevelopment agencies continues to negatively affect the City.
Nevertheless, the goal to develop properties owned by the former redevelopment agency is moving
forward in order to generate additional revenues to help address additional costs in the long term.
Furthermore, it is projected that property tax revenues will keep increasing as new home sales and the
improvement in the economy continue. Staff will continue to be prudent with its budget and to monitor
any legislative action that could impact the financial condition in Azusa.
Request for Information
This financial report is designed to provide a general overview of the financial position of the City of
Azusa for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to City of
Azusa Finance Department, 213 E. Foothill Blvd., Azusa, CA 91702.
15
THIS PAGE INTENTIONALLY LEFT BLANK
16
CITY OF AZUSA
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 13,093,818$ 31,310,135$ 44,403,953$
Receivables:
Accounts 1,879,473 11,212,079 13,091,552
Taxes 1,360,338 - 1,360,338
Notes and loans 2,604,451 82,844 2,687,295
Accrued interest 2,565 21,729 24,294
Internal balances (4,450,135) 4,450,135 -
Prepaid costs 14,847 6,730 21,577
Deposits 466 - 466
Inventories 145,291 1,654,691 1,799,982
Land held for resale 20,773,838 2,919,646 23,693,484
Restricted assets:
Cash and investments 2,447,723 13 2,447,736
Cash with fiscal agent 615,067 13,365,576 13,980,643
Cash held for rate stabilization - 9,845,901 9,845,901
Net pension asset 7,520,369 - 7,520,369
Capital assets not being depreciated 1,792,799 4,092,123 5,884,922
Capital assets, net of depreciation 28,166,632 123,042,215 151,208,847
Total Assets 75,967,542 202,003,817 277,971,359
Deferred Outflows of Resources:
Deferred charge on refunding - 1,198,351 1,198,351
Total Deferred Outflows
of Resources - 1,198,351 1,198,351
Liabilities:
Accounts payable 2,366,361 2,591,121 4,957,482
Accrued liabilities 1,229,604 280,735 1,510,339
Accrued interest 175,599 1,615,436 1,791,035
Unearned revenue 754,992 - 754,992
Deposits payable 10,000 4,337,894 4,347,894
Due to other governments 4,890 31,928 36,818
Noncurrent liabilities:
Due within one year 3,898,441 3,378,760 7,277,201
Due in more than one year 38,131,912 76,120,778 114,252,690
Total Liabilities 46,571,799 88,356,652 134,928,451
Net Position:
Net investment in capital assets 29,959,431 58,465,869 88,425,300
Restricted for:
Community development projects 4,191,173 - 4,191,173
Public safety 1,092,739 - 1,092,739
Capital projects 3,455,627 - 3,455,627
Debt service 482,627 5,056,277 5,538,904
Rate stabilization - 9,845,901 9,845,901
Unrestricted (9,785,854) 41,477,469 31,691,615
Total Net Position 29,395,743$ 114,845,516$ 144,241,259$
JUNE 30, 2014
Primary Government
See Notes to Financial Statements 17
CITY OF AZUSA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2014
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 8,843,327$ 3,919,876$ 45,215$ -$
Public safety 21,284,020 829,054 1,695,383 442,727
Community development 2,593,720 3,296,987 323,019 -
Parks and Recreation 3,808,038 1,181,561 265,819 -
Public works 5,412,524 525,343 1,507,043 -
Interest on long-term debt 1,330,555 - - -
Total Governmental Activities 43,272,184 9,752,821 3,836,479 442,727
Business-Type Activities:
Water 18,345,227 21,762,242 - -
SewerLight 45,011,550 45,001,748 - -
Solid WasteSewer/ Wastewater 2,434,295 2,566,676 - -
Golf courseRefuse Contract 2,938,255 3,058,956 - -
Total Business-Type Activities 68,729,327 72,389,622 - -
Total Primary Government 112,001,511$ 82,142,443$ 3,836,479$ 442,727$
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
Transfers
Total General Revenues
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
(4,878,236)$ -$ (4,878,236)$
(18,316,856) - (18,316,856)
1,026,286 - 1,026,286
(2,360,658) - (2,360,658)
(3,380,138) - (3,380,138)
(1,330,555) - (1,330,555)
(29,240,157) - (29,240,157)
- 3,417,015 3,417,015
- (9,802) (9,802)
- 132,381 132,381
- 120,701 120,701
- 3,660,295 3,660,295
(29,240,157) 3,660,295 (25,579,862)
8,023,547 542,409 8,565,956
223,675 - 223,675
7,183,809 - 7,183,809
6,757,708 - 6,757,708
1,922,139 - 1,922,139
3,441,178 - 3,441,178
1,763,038 - 1,763,038
20,876 - 20,876
(423,898) 300,515 (123,383)
759,132 399,293 1,158,425
1,535,996 (1,535,996) -
31,207,200 (293,779) 30,913,421
1,967,043 3,366,516 5,333,559
27,828,998 108,984,054 136,813,052
(400,298) 2,494,946 2,094,648
29,395,743$ 114,845,516$ 144,241,259$
Net (Expenses) Revenues and Changes in Net Position
See Notes to Financial Statements 19
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2014
Other Total
Governmental Governmental
General Funds Funds
Assets:
Pooled cash and investments -$ 11,034,340$ 11,034,340$
Receivables:
Accounts 1,068,779 804,178 1,872,957
Taxes 1,173,213 187,125 1,360,338
Notes and loans 6,428 2,597,486 2,603,914
Accrued interest 936 1,393 2,329
Prepaid costs 2,387 10,648 13,035
Deposits - 466 466
Inventories 145,291 - 145,291
Land held for resale 20,773,838 - 20,773,838
Restricted assets:
Cash and investments 2,416,995 30,728 2,447,723
Cash and investments with fiscal agents 132,476 482,591 615,067
Total Assets 25,720,343$ 15,148,955$ 40,869,298$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 733,909$ 1,145,213$ 1,879,122$
Accrued liabilities 1,093,619 104,950 1,198,569
Unearned revenues - 754,992 754,992
Deposits payable 10,000 - 10,000
Due to other governments 4,890 - 4,890
Due to other funds 3,228,977 203,342 3,432,319
Advances from other funds 231,000 750,000 981,000
Total Liabilities 5,302,395 2,958,497 8,260,892
Deferred Inflows of Resources:
Unavailable revenues - 3,082,505 3,082,505
Total Deferred Inflows of Resources - 3,082,505 3,082,505
Fund Balances:
Nonspendable:
Inventory 145,291 - 145,291
Prepaid costs 2,387 10,648 13,035
Land held for resale 20,773,838 - 20,773,838
Notes and loans 6,428 249 6,677
Deposits - 466 466
Restricted for:
Community development projects - 4,191,173 4,191,173
Public safety - 1,092,739 1,092,739
Capital projects - 3,455,627 3,455,627
Debt service - 482,627 482,627
Unassigned (509,996) (125,576) (635,572)
Total Fund Balances 20,417,948 9,107,953 29,525,901
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 25,720,343$ 15,148,955$ 40,869,298$
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, 2014
Fund balances of governmental funds 29,525,901$
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.29,189,072
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Long-term liabilities (25,579,989)$
Compensated Absences (3,534,747) (29,114,736)
Governmental funds report all pension and 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 (10,383,609)
Net Pension Asset 7,520,369 (2,863,240)
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds.(175,599)
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.3,082,505
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.(248,160)
Net Position of governmental activities 29,395,743$
See Notes to Financial Statements 21
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
Other Total
Governmental Governmental
General Funds Funds
Revenues:
Taxes 27,289,357$ 1,977,030$ 29,266,387$
Assessments 2,216,830 - 2,216,830
Licenses and permits 1,586,117 - 1,586,117
Intergovernmental 336,899 4,132,849 4,469,748
Charges for services 2,515,597 1,881,397 4,396,994
Use of money and property 89,594 41,921 131,515
Fines and forfeitures 1,343,318 - 1,343,318
Contributions 16,671 68,199 84,870
Miscellaneous 736,159 134,040 870,199
Total Revenues 36,130,542 8,235,436 44,365,978
Expenditures:
Current:
General government 6,226,672 535,795 6,762,467
Public safety 16,580,025 4,297,065 20,877,090
Community development 1,646,011 918,904 2,564,915
Parks and recreation 3,088,757 472,734 3,561,491
Public works 548,068 3,697,205 4,245,273
Capital outlay 260,864 1,943,618 2,204,482
Debt service:
Principal retirement 1,461,996 245,000 1,706,996
Interest and fiscal charges 290,225 111,040 401,265
Total Expenditures 30,102,618 12,221,361 42,323,979
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,027,924 (3,985,925) 2,041,999
Other Financing Sources (Uses):
Transfers in 1,574,577 4,735,817 6,310,394
Transfers out (4,483,401) (293,868) (4,777,269)
Total Other Financing Sources
(Uses)(2,908,824) 4,441,949 1,533,125
Net Change in Fund Balances 3,119,100 456,024 3,575,124
Fund Balances, Beginning of Year, as
previously reported 17,699,146 8,651,929 26,351,075
Restatements (400,298) - (400,298)
Fund Balances, Beginning of Year, as restated 17,298,848 8,651,929 25,950,777
Fund Balances, End of Year 20,417,948$ 9,107,953$ 29,525,901$
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, 2014
Net change in fund balances - total governmental funds 3,575,124$
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 2,047,479$
Depreciation (1,463,510) 583,969
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 1,706,996
Amortization of bond premiums/discounts 20,878
Accrued interest on Obligation debt (979,008) 748,866
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.28,840
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.771,575
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 (2,011,003)
Net Pension Asset (620,572) (2,631,575)
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.(669,834)
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.(439,922)
Change in net position of governmental activities 1,967,043$
See Notes to Financial Statements 23
CITY OF AZUSA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2014
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Assets and Deferred Outflows of Resources:
Assets:
Current:
Cash and investments 21,662,182$ 9,221,503$ 186,020 $ 31,069,705$ 2,299,908 $
Receivables:
Accounts 4,325,350 5,004,903 722,722 10,052,975 1,165,620
Notes and loans 4,528 76,965 - 81,493 1,888
Accrued interest 8 14,549 34 14,591 7,374
Prepaid costs 705 1,601 4,424 6,730 1,812
Due from other funds 3,927,726 - - 3,927,726 -
Inventories - 1,654,691 - 1,654,691 -
Land held for resale 2,919,646 - - 2,919,646 -
Restricted:
Cash and investments - 13 - 13 -
Cash with fiscal agent 6,874,027 2,126,539 4,365,010 13,365,576 -
Cash held for rate stabilization - 9,845,901 - 9,845,901 -
Total Current Assets 39,714,172 27,946,665 5,278,210 72,939,047 3,476,602
Noncurrent:
Advances to other funds - 981,000 - 981,000 -
Capital assets - net of accumulated depreciation 86,113,766 29,090,164 11,318,382 126,522,312 1,382,385
Total Noncurrent Assets 86,113,766 30,071,164 11,318,382 127,503,312 1,382,385
Total Assets 125,827,938 58,017,829 16,596,592 200,442,359 4,858,987
Deferred Outflows of Resources:
Deferred charge on refunding 827,089 371,262 - 1,198,351 -
Total Deferred Outflows of Resources 827,089 371,262 - 1,198,351 -
Total Assets and Deferred Outflows
of Resources:126,655,027$ 58,389,091$ 16,596,592$ 201,640,710$ 4,858,987$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 767,575$ 1,206,172$ 503,517$ 2,477,264$ 601,096$
Accrued liabilities 85,247 91,468 23,553 200,268 111,502
Accrued interest 1,472,369 143,067 - 1,615,436 -
Deposits payable 1,000,055 3,337,839 - 4,337,894 -
Due to other governments 31,928 - - 31,928 -
Due to other funds - - 458,591 458,591 36,816
Accrued compensated absences 284,516 212,961 61,150 558,627 292,829
Accrued claims and judgments - - - - 649,109
Bonds, notes, and capital leases 1,735,000 585,000 350,000 2,670,000 -
Total Current Liabilities 5,376,690 5,576,507 1,396,811 12,350,008 1,691,352
Noncurrent:
Accrued compensated absences 145,399 327,154 25,523 498,076 149,402
Accrued claims and judgments - - - - 1,707,384
Bonds, notes, and capital leases 63,436,432 7,339,687 4,730,000 75,506,119 -
Total Noncurrent Liabilities 63,581,831 7,666,841 4,755,523 76,004,195 1,856,786
Total Liabilities 68,958,521 13,243,348 6,152,334 88,354,203 3,548,138
Net Position:
Net investment in capital assets 24,836,600 22,413,851 10,603,392 57,853,843 1,382,385
Restricted for debt service 3,806,850 1,249,427 - 5,056,277 -
Restricted for rate stabilization - 9,845,901 - 9,845,901 -
Unrestricted 29,053,056 11,636,564 (159,134) 40,530,486 (71,536)
Total Net Position 57,696,506 45,145,743 10,444,258 113,286,507 1,310,849
Total Liabilities and Net Position 126,655,027$ 58,389,091$ 16,596,592$ 201,640,710$ 4,858,987$
Reconciliation of Net Position to the Statement of Net Position
Net Position per Statement of Net Position - Proprietary Funds 113,286,507$
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds activities related to the enterprise funds 1,561,125
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (2,116)
Net Position per Statement of Net Position 114,845,516$
Business-Type Activities - Enterprise Funds
Water Light
See Notes to Financial Statements 24
CITY OF AZUSA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2014
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Operating Revenues:
Sales and service charges 21,762,242$ 45,001,748$ 5,625,632$ 72,389,622$ 9,912,181$
Interdepartmental charges 133,244 68,903 - 202,147 -
Miscellaneous 2,800 177,160 17,186 197,146 297,682
Total Operating Revenues 21,898,286 45,247,811 5,642,818 72,788,915 10,209,863
Operating Expenses:
Administration and general 6,339,599 6,873,159 1,122,412 14,335,170 7,619,820
Source of supply 982,341 29,706,571 - 30,688,912 279,461
Pumping 48,680 - - 48,680 -
Transmission/collection 1,725,524 3,331,804 - 5,057,328 -
Treatment 424,180 - 652,410 1,076,590 -
Refuse collection - - 2,938,255 2,938,255 -
Cost of sales and services 2,222,934 65,832 - 2,288,766 -
Claims expense - - - - 1,954,205
Depreciation expense 3,706,738 1,259,051 427,474 5,393,263 254,481
Total Operating Expenses 15,449,996 41,236,417 5,140,551 61,826,964 10,107,967
Operating Income (Loss)6,448,290 4,011,394 502,267 10,961,951 101,896
Nonoperating Revenues (Expenses):
Taxes - - 542,409 542,409 -
Interest revenue 127,126 174,540 (1,151) 300,515 7,087
Interest expense (2,880,043) (291,429) (179,595) (3,351,067) -
Special franchise fees (373,842) (3,676,826) (52,404) (4,103,072) -
Total Nonoperating
Revenues (Expenses)(3,126,759) (3,793,715) 309,259 (6,611,215) 7,087
Income (Loss) Before Transfers 3,321,531 217,679 811,526 4,350,736 108,983
Transfers in - - - - 115,871
Transfers out (115,000) (96,683) (770,421) (982,104) (666,892)
Changes in Net Position 3,206,531 120,996 41,105 3,368,632 (442,038)
Net Position:
Beginning of Year, as
previously reported 54,812,397 44,890,500 7,720,032 107,422,929 1,752,887
Restatements (322,422) 134,247 2,683,121 2,494,946 -
Beginning of Fiscal Year, as restated 54,489,975 45,024,747 10,403,153 109,917,875 1,752,887
End of Fiscal Year 57,696,506$ 45,145,743$ 10,444,258$ 113,286,507$ 1,310,849$
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 3,368,632$
Adjustment to reflect the consolidation of current fiscal year
internal service funds activities related to enterprise funds (2,116)
Changes in Net Position of Business-Type Activities per Statement of Activities 3,366,516$
Water Light
See Notes to Financial Statements 25
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2014
Governmental
Other Activities-
Enterprise Internal
Funds Totals Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users 22,416,323$ 44,830,677$ 8,370,910$ 75,617,910$ 9,091,710$
Cash received from/(paid to) interfund service provided 133,244 68,903 - 202,147 -
Cash paid to suppliers for goods and services (5,980,226) (32,826,849) (4,264,870) (43,071,945) (2,072,154)
Cash paid to employees for services (6,360,934) (6,971,835) (1,147,330) (14,480,099) (7,734,223)
Net Cash Provided by (Used in) Operating Activities 10,208,407 5,100,896 2,958,710 18,268,013 (714,667)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (115,000) (96,683) (770,421) (982,104) (666,892)
Cash transfers in - - - - 115,871
Repayment received from other funds 1,048,679 - 458,591 1,507,270 -
Repayment made to other funds - - - - (560)
Net Cash Used in
Non-Capital Financing Activities 933,679 (96,683) (311,830) 525,166 (551,581)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (1,432,061) (835,113) (3,290,289) (5,557,463) (442,269)
Principal paid on capital debt (1,217,700) (555,000) (325,000) (2,097,700) -
Interest paid on capital debt (2,851,988) (300,510) (179,595) (3,332,093) -
Special franchise fees paid (373,842) (3,676,826) (52,404) (4,103,072) -
Gain from sales of capital assets - - 542,409 542,409 -
Net Cash Provided by (Used in)
Capital and Related Financing Activities (5,875,591) (5,367,449) (3,304,879) (14,547,919) (442,269)
Cash Flows from Investing Activities:
Issuance of new loans (4,235) (2,101) - (6,336) -
Repayment received on loans - - 87 87 2,627
Interest received 127,118 174,526 (828) 300,816 7,132
Net Cash Provided by
Investing Activities 122,883 172,425 (741) 294,567 9,759
Net Increase (Decrease) in Cash
and Cash Equivalents 5,389,378 (190,811) (658,740) 4,539,827 (1,698,758)
Cash and Cash Equivalents at Beginning of Year 23,146,831 21,384,767 5,209,770 49,741,368 3,998,666
Cash and Cash Equivalents at End of Year 28,536,209$ 21,193,956$ 4,551,030$ 54,281,195$ 2,299,908$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)6,448,290$ 4,011,394$ 502,267$ 10,961,951$ 101,896$
Adjustments to reconcile operating income (loss)
net cash provided by (used in) operating activities:
Depreciation 3,706,738 1,259,051 427,474 5,393,263 254,481
Restatement (322,422) 134,247 2,683,121 2,494,946 -
(Increase) decrease in accounts receivable 651,281 (348,231) 44,971 348,021 (1,152,676)
(Increase) decrease in inventories - 12,028 - 12,028 -
(Increase) decrease in prepaid expense (655) 12,355 (4,424) 7,276 34,523
Increase (decrease) in accounts payable (376,072) (276,168) (546,660) (1,198,900) (88,262)
Increase (decrease) in accrued liabilities 6,731 15,724 (2,154) 20,301 18,544
Increase (decrease) in deposits payable 124,461 394,896 (120,967) 398,390 -
Increase (decrease) in due to other governments (1,879) - - (1,879) -
Increase (decrease) in claims and judgments - - - - 231,230
Increase (decrease) in compensated absences (28,066) (114,400) (24,918) (167,384) (114,403)
Total Adjustments 3,760,117 1,089,502 2,456,443 7,306,062 (816,563)
Net Cash Provided by (Used in)
Operating Activities 10,208,407$ 5,100,896$ 2,958,710$ 18,268,013$ (714,667)$
Non-Cash Investing, Capital, and Financing Activities:
Amortization of premiums (217,700)$ (13,298)$ -$ (230,998)$ -$
Amortization of deferred charge on refunding - 18,563 - 18,563 -
Water Light
See Notes to Financial Statements 26
CITY OF AZUSA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2014
Agency
Funds
Assets:
Pooled cash and investments 4,059,151$ 2,767,955$
Receivables:
Accounts 105,355 -
Taxes 106,456 -
Notes and loans - 1,203,365
Accrued interest - 13,373
Advances to City - 8,208,832
Land held for resale - 14,751,971
Restricted assets:
Cash and investments with fiscal agents - 4,160,910
Capital assets:
Capital assets, not being depreciated - 410,420
Capital assets, net of accumulated depreciation - 1,313,999
Total Assets 4,270,962$ 32,830,825
Liabilities:
Accounts payable 4,223,970$ 1,601,706
Accrued liabilities 12,695 43,837
Accrued interest - 1,215,248
Deposits payable 17,902 -
Due to other governments 16,395 -
Long-term liabilities:
Due in one year - 1,360,000
Due in more than one year - 49,286,976
Total Liabilities 4,270,962$ 53,507,767
Net Position:
Held in trust for other purposes (20,676,942)
Total Net Position (20,676,942)$
Private-
Purpose Trust
Fund
RDA
Successor
Agency Fund
See Notes to Financial Statements 27
CITY OF AZUSA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2014
Additions:
Taxes 5,097,292$
Interest and change in fair value of investments (668,426)
Contributions from City 5,100
Miscellaneous 705
Total Additions 4,434,671
Deductions:
Administrative expenses 110,348
Contractual services 77,256
Interest expense 3,037,779
Contributions to other governments 1,180,023
Reimbursement of prior taxes to County 220,030
Total Deductions 4,625,436
Changes in Net Position (190,765)
Net Position - Beginning of the Year (21,789,204)
Restatement 1,303,027
Net Position - End of the Year (20,676,942)$
Private-
Purpose Trust
Fund
RDA
Successor
Agency Fund
See Notes to Financial Statements 28
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
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.
29
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
30
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
31
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
32
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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 proceeding 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.
33
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
34
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
35
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
36
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
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.
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
37
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
City of Azusa. Cash and cash equivalents for proprietary funds are reported in the
accompanying financial statements as:
Enterprise Internal Service
Cash and investments 31,069,705$ 2,299,908$
Restricted:
Cash and investments 13 -
Cash with fiscal agent 13,365,576 -
Cash held for rate stabilization 9,845,901 -
Total 54,281,195$ 2,299,908$
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 ($17,371,156) long-term debt
difference is as follows:
Long-term debt:
Developer loans payable (10,700,656)$
Certificates of participation (2,540,000)
Taxable pension bonds (4,075,000)
Deferred premium on bonds and COP
(to be amortized over life of debt) (55,500)
Successor Agency Loan (8,208,833)
Net adjustment to reduce fund balance of total
governmental funds to arrive at net position of
governmental activities (25,579,989)$
Explanation of certain differences between the governmental fund statement of revenues,
expenditures and changes in fund balances and the government-wide statement of
activities.
The governmental fund statement of revenues, expenditures and changes in fund
balances includes the reconciliation between net changes in fund balances of total
governmental funds and changes in net 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
38
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
amortized in the statement of activities. The detail of this $748,866 difference is as
follows:
Debt issued or incurred:
Developer loan (979,008)$
Principal repayments and amortizations:
Certificates of participation 245,000
Pension bonds 780,000
Developer loans 681,996
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.748,866$
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 COPS Universal Hiring, Highway 39, LACMTA, Rosedale Traffic
Mitigation, 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 $100,000 or more must be approved by City Council.
Spending control (legal level of control) is established by the amount of expenditures
budgeted at the department level. During the year, several supplementary appropriations
were necessary. Individual amendments were not material in relation to the original
appropriations.
39
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 2: Stewardship, Compliance and Accountability (Continued)
b. Deficit Fund Balance
The following funds had a deficit fund balance as of June 30, 2014:
Nonmajor Funds:
Governmental:
Community Development Block Grant 118,870$
Capital Projects 106
Fiduciary Funds:
Private Purpose Trust Fund: Successor
Agency of the Former Redevelopment Agency 20,676,942
Internal Service Funds:
Self Insurance 957,047
Central Services 3,510
IT Services 32,276
These deficits will be funded through future years’ revenues and transfers.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2014, cash and investments were reported in the accompanying financial
statements as follows:
Governmental Activities:
Cash and investments 13,093,818$
Restricted
Cash and investments 2,447,723
Cash with fiscal agents 615,067
Business-type activities:
Cash and investments 31,310,135
Restricted
Cash and investments 13
Cash with fiscal agents 13,365,576
Cash held for rate stabilization 9,845,901
Fiduciary Funds:
Agency Funds:
Cash and investments 4,059,151
Private-Purpose Trust:
Cash and investments 2,767,955
Restricted
Cash with fiscal agents 4,160,910
Total Cash and Investments 81,666,249$
40
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 3: Cash and Investments (Continued)
The City of Azusa maintains a cash and investment pool that is available for use for all funds.
Each fund type's position in the pool is reported on the combined balance sheet as cash and
investments. The City has adopted an investment policy, which authorizes it to invest in
various investments.
Deposits
At June 30, 2014, the carrying amount of the City’s deposits was $7,217,085 and the
bank balance was $8,044,853, The $827,768 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
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.
41
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 3: Cash and Investments (Continued)
Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. LAIF is overseen by the Local Agency Investment
Advisory Board, which consists of five members, in accordance with State statute. The
State Treasurer’s Office audits the fund annually. The fair value of the position in the
investment pool is the same as the value of the pool shares.
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for
certain investments and for External Investment Pools, as of July 1, 1997. GASB
Statement No. 31 establishes fair value standards for investments in participating interest
earning investment contracts, external investment pools, equity securities, option
contracts, stock warrants and stock rights that have readily determinable fair values.
Accordingly, the City reports its investments at fair value in the balance sheet. All
investment income, including changes in the fair value of investments, is recognized as
revenue in the operating statement.
Credit Risk
The City's investment policy limits investments in medium term notes (MTNs) to those
rated A or higher by Standard and Poor's (S&P) or by Moody's. At June 30, 2014, the
City’s investments in Federal Agency securities consisted of investments with Federal
Home Loan Bank and Federal Farm Credit Bank. At June 30, 2014, 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, 2014, 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, 2014, 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, 2014, the City has investments of $16,083,637 (22%) with Federal Home
Loan Bank and $11,960,990 (16%) with Federal Farm Credit Bank. Investments
guaranteed by the U.S. government, investments in mutual funds and external investment
pools are excluded from this requirement.
42
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 3: Cash and Investments (Continued)
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The City's investment
policy states that no investment may have a maturity of more than five years without
receiving prior City Council approval. The only exception to these maturity limits shall be
the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated
with bond issues may have a maturity of more than five years. The City has elected to
use the segmented time distribution method of disclosure for its interest rate risk. As of
June 30, 2014, the City had the following investments and original maturities:
6 months 6 months 1 to 3 3 to 5 Fair
or less to 1 year years years Value
Federal agency securities 1,000,690$ -$ 3,485,075$ 16,926,990$ 21,412,755$
Local Agency Investment Fund 19,829,811 - - - 19,829,811
Certificates of Deposit 1,002,229 748,034 1,697,871 491,189 3,939,323
Money market mutual funds 1,244,220 - - - 1,244,220
Cash with Fiscal Agents:
Money market mutual funds 17,833,705 - - - 17,833,705
Federal agency securities - - 3,644,402 3,975,370 7,619,772
Certificates of Deposit 877,278 517,416 1,174,884 - 2,569,578
41,787,933$ 1,265,450$ 10,002,232$ 21,393,549$ 74,449,164$
Remaining Investment Maturities
43
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2014, was as follows:
Beginning Ending
Balance Transfers Increases Decreases Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land 1,319,536$ -$ -$ -$ 1,319,536$
Construction-in-progress 71,222 (1,366,274) 1,768,315 - 473,263
Total Capital Assets
Not Being Depreciated 1,390,758 (1,366,274) 1,768,315 - 1,792,799
Capital Assets, Being Depreciated:
Land improvements 4,423,252 - - - 4,423,252
Buildings and structures 12,716,411 - - - 12,716,411
Machinery and equipment 7,452,077 - 554,414 - 8,006,491
Automotive equipment 3,088,275 - 164,512 (58,163) 3,194,624
Infrastructure 47,956,168 1,366,274 - - 49,322,442
Total Capital Assets
Being Depreciated 75,636,183 1,366,274 718,926 (58,163) 77,663,220
Less Accumulated Depreciation:
Land improvements 2,843,853 - 127,267 - 2,971,120
Buildings and structures 5,318,292 - 301,967 - 5,620,259
Machinery and equipment 6,430,328 - 252,855 - 6,683,183
Automotive equipment 2,427,390 - 201,693 (58,163) 2,570,920
Infrastructure 30,920,512 - 730,594 - 31,651,106
Total Accumulated Depreciation 47,940,375 - 1,614,376 (58,163) 49,496,588
Total Capital Assets
Being Depreciated, Net 27,695,808 1,366,274 (895,450) - 28,166,632
Governmental Activities
Capital Assets, Net 29,086,566$ -$ 872,865$ -$ 29,959,431$
44
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 4: Capital Assets (Continued)
Beginning Ending
Balance Transfers Increases Decreases Balance
Business-Type Activities:
Capital Assets, Not Being Depreciated:
Land 2,988,973$ -$ -$ -$ 2,988,973$
Construction-In-Progress 18,379 (2,935,947) 4,020,718 - 1,103,150
Total Capital Assets
Not Being Depreciated 3,007,352 (2,935,947) 4,020,718 - 4,092,123
Capital Assets, Being Depreciated:
Land improvements 1,212,318 - - - 1,212,318
Building and structures 22,635,772 - - - 22,635,772
Machinery and equipment 12,786,431 - 779,795 - 13,566,226
Automotive equipment 3,752,664 - 27,304 (25,644) 3,754,324
Infrastructure 150,351,621 2,935,947 732,153 - 154,019,721
Total Capital Assets
Being Depreciated 190,738,806 2,935,947 1,539,252 (25,644) 195,188,361
Less Accumulated Depreciation:
Land improvements 713,963 - 39,062 - 753,025
Building and structures 8,729,821 - 502,205 - 9,232,026
Machinery and equipment 9,731,652 - 465,539 - 10,197,191
Automotive equipment 3,243,401 - 131,699 (25,644) 3,349,456
Infrastructure 44,256,075 - 4,358,373 - 48,614,448
Total Accumulated Depreciation 66,674,912 - 5,496,878 (25,644) 72,146,146
Total Capital Assets
Being Depreciated, Net 124,063,894 2,935,947 (3,957,626) - 123,042,215
Business-Type Activities
Capital Assets, Net 127,071,246$ -$ 63,092$ -$ 127,134,338$
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government 94,938$
Public safety 105,729
Community development 15,032
Parks and recreation 261,392
Public works 986,419
Internal service funds 150,866
Total 1,614,376$
Business-Type Activities:
Water 3,706,738$
Light 1,259,051
Sewer/Wastewater 427,474
Internal service funds 103,615
Total 5,496,878$
45
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: Long-Term Debt
a. Long-Term Debt – Governmental Activities
The following is a summary of changes in long-term debt of the City for the year ended
June 30, 2014:
Beginning at Ending Due within
July 1, 2013 Addition Deletion June 30, 2014 one year
City
Compensated Absences 4,306,322$ 1,642,618$ (2,414,193)$ 3,534,747$ 1,981,636$
Net OPEB Liability 8,372,606 2,011,003 - 10,383,609 -
Advance from the Successor Agency 8,208,833 - - 8,208,833 -
2008 Taxable pension funding bonds 4,855,000 - (780,000) 4,075,000 870,000
Obligation under developer
agreements 10,403,644 979,008 ** (681,996) 10,700,656 -
36,146,405 4,632,629 (3,876,189) 36,902,845 2,851,636
Public Financing Authority
2003 Certificates of Participation 2,785,000 - (245,000) 2,540,000 255,000
Internal Service Funds:
Compensated Absences 280,467 124,735 (229,687) 175,515 142,696
Claims and Judgments payable 2,125,263 816,616 (585,386) 2,356,493 649,109
Total Internal Service 2,405,730 941,351 (815,073) 2,532,008 791,805
Unamortized Premiums/Discounts
Premiums 92,095 - (23,008) 69,087 N/A
Discounts (15,717) 2,130 - (13,587) N/A
Total Premiums/ Discounts 76,378 2,130 (23,008) 55,500 -
Total Governmental Long-term Debt 41,413,513$ 5,576,110$ (4,959,270)$ 42,030,353$ 3,898,441$
**Addition of $979,008 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 7 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 advanced 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, 2014, is $8,208,833.
46
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: Long-Term Debt (Continued)
2008 Taxable Pension Funding Bonds
In December 2008, the City issued $7,215,000 pension funding bonds to fund the City’s
actuarial accrued liability with respect to its public safety plan. The bonds bear interest at
6.50% and the principal matures in amounts ranging from $480,000 to $1,175,000 on
January 1 each year from 2010 through 2018. The annual principal requirements to
amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2014, are as
follows:
Principal Interest
2014-2015 870,000$ 264,875$
2015-2016 965,000 208,325
2016-2017 1,065,000 145,600
2017-2018 1,175,000 76,375
Total 4,075,000$ 695,175$
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, 2014, 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, 2014, was
$2,540,000.
The annual requirements to repay the outstanding indebtedness at June 30, including
interest, are shown in the schedule below:
Principal Interest
2014-2015 255,000$ 101,849$
2015-2016 265,000 91,768
2016-2017 275,000 80,968
2017-2018 285,000 69,590
2018-2019 300,000 57,337
2019-2024 1,160,000 62,661
Total 2,540,000$ 464,173$
2003 Certificates of
Participation
47
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: 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, 2014, was $10,700,656.
On May 15, 1989, the former Redevelopment Agency entered into an agreement with the
City of Azusa to transfer all sales tax revenues received by the former Redevelopment
Agency under the Price Company developer agreement to the City, except that required
for repayment of the note or other required purposes.
Due to the dissolution of the former Redevelopment Agency, the City has elected to
continue this agreement under the City of Azusa.
48
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: Long-Term Debt (Continued)
b. Long-Term Debt – Business-Type Activities
The following is a summary of changes in long-term debt for the year ended
June 30, 2014:
Beginning at Ending Due within
July 1, 2013 Addition Deletion June 30, 2014 one year
Water Fund:
Compensated Absences 457,981$ 275,023$ (303,089)$ 429,915$ 284,516$
2006 Water Revenue Bonds 53,645,000 - (330,000) 53,315,000 1,045,000
2012 Water Refunding Bonds, Series A 8,715,000 - (670,000) 8,045,000 690,000
Total Water Fund 62,817,981 275,023 (1,303,089) 61,789,915 2,019,516
Light Fund:
Compensated Absences 654,515 143,667 (258,067) 540,115 212,961
2003 Certificates of participation,
Series B and C 2,540,000 - (555,000) 1,985,000 585,000
2012 Electric Refunding Bonds, Series B 5,820,000 - - 5,820,000 -
Total Light Fund 9,014,515 143,667 (813,067) 8,345,115 797,961
Sewer/Wastewater Fund:
Compensated Absences 111,591 53,812 (78,730) 86,673 61,150
2011 Sewer Installment Loan, Series A 1,385,000 - (160,000) 1,225,000 160,000
2011 Sewer Installment Loan, Series B 4,020,000 - (165,000) 3,855,000 190,000
Total Sewer/Wastewater Fund 5,516,591 53,812 (403,730) 5,166,673 411,150
Internal Service Fund:
Compensated Absences 276,167 146,002 (155,453) 266,716 150,133
Total Internal Service Fund 276,167 146,002 (155,453) 266,716 150,133
Total Business-Type Funds 77,625,254$ 618,504$ (2,675,339)$ 75,568,419 3,378,760$
Unamortized bond premiums 3,931,119
79,499,538$
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.
49
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: 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 $13,230,000
and interest ranges from 3.920% to 4.380%.
The annual requirements to amortize the outstanding bonds as of June 30, 2014,
including interest are as follows:
Principal Interest
2014-2015 1,045,000$ 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
2018-2019 1,265,000 2,384,063
2019-2024 7,365,000 10,878,563
2024-2029 9,335,000 8,902,281
2029-2034 11,955,000 6,282,375
2034-2039 15,355,000 2,886,125
2039-2044 3,560,000 89,000
Totals 53,315,000$ 41,532,809$
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 $955,000. Interest ranges from 2.000% to 5.000% and is
payable semi-annually on July 1 and January 1.
50
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding bonds as of June 30, 2014,
including interest are as follows:
Principal Interest
2014-2015 690,000$ 303,600$
2015-2016 710,000 282,600
2016-2017 735,000 260,925
2017-2018 755,000 238,575
2018-2019 780,000 211,650
2019-2024 4,375,000 545,425
Totals 8,045,000$ 1,842,775$
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, 2014, 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, 2014, was
$1,985,000.
The annual requirements to amortize the outstanding certificates of participation as of
June 30, 2014, including interest, are as follows:
Principal Interest
2014-2015 585,000$ 94,272$
2015-2016 620,000 60,713
2016-2017 650,000 25,344
2017-2018 130,000 3,621
Totals 1,985,000$ 183,950$
Electric - Certificates of
Participation, Series C
51
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: 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 $582,000. As of
June 30, 2014, the reserve requirement was fully funded.
The annual requirements to amortize the outstanding bonds as of June 30, 2014,
including interest are as follows:
Principal Interest
2014-2015 -$ 175,569$
2015-2016 - 175,569
2016-2017 - 175,569
2017-2018 650,000 169,069
2018-2019 795,000 150,644
2019-2024 4,375,000 349,841
Totals 5,820,000$ 1,196,261$
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 $505,000. Interest rates on the Series
B installments are 3.600%.
52
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 5: Long-Term Debt (Continued)
The annual requirements to amortize the outstanding installment agreements as of
June 30, 2014, including interest are as follows:
Principal Interest Principal Interest
2014 - 2015 160,000$ 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 - 2019 180,000 13,485 220,000 105,840
2019 - 2024 375,000 10,948 1,835,000 369,810
2024 - 2029 - - 995,000 36,090
Totals $1,225,000 $128,399 $3,855,000 $1,010,070
2011 Sewer Installment Series A 2011 Sewer Installment Series B
Note 6: Defined Benefit Pension Plan
Plan Description
The City of Azusa contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee defined benefit pension plan for the
miscellaneous plan and a cost sharing multiple-employer public employee defined benefit
pension plan for the safety plan. PERS provides retirement and disability benefits, annual
cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS
acts as a common investment and administrative agent for participating public entities
within the State of California. Benefit provisions and all other requirements are
established by State statute and City ordinance. Copies of PERS' annual financial report
may be obtained from their executive office: 400 P Street, Sacramento, CA 95814.
Funding Policy
Participants are required to contribute 7% (9% for safety employees) of their annual
covered salary. The City makes the contributions required of City employees on their
behalf and for their account. The City is required to contribute at an actuarially
determined rate; the current rate is 13.645% for non-safety employees and 30.281% for
safety employees, of annual covered payroll. The contribution requirements of plan
members and the City are established and may be amended by PERS.
53
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 6: Defined Benefit Pension Plan (Continued)
Annual Pension Cost and Net Pension Obligation (Asset)
The City's annual pension cost and change in net pension obligation (asset) for the fiscal
year ending June 30, 2014, were as follows:
Annual required contribution 4,829,012$
Interest on net pension obligation (559,986)
Adjustment to annual required contribution 1,180,558
Annual pension cost 5,449,584
Contribution made 4,829,012
Increase (decrease) in net pension obligation 620,572
Net pension obligation (asset) beginning of year (8,140,941)
Net pension obligation (asset) end of year (7,520,369)$
The required contribution was determined as part of the June 30, 2011, 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, 2011
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Average Remaining Period 25 Years as of the Valuation Date for Miscellaneous
Employee and 21 Years as of the Valuation Date for
Safety Employees
Asset Valuation Method 15 Year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return 7.50% (net of administrative expenses)
Projected Salary Increases 3.30% to 14.20% depending on age, service and type
of employment
Inflation 2.75%
Payroll Growth 3.00%
Individual Salary Growth A merit scale varying by duration of employment
coupled with an assumed annual inflation growth of
2.75% 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.
54
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 6: 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
6/30/2012 2,821$ 100%-$
6/30/2013 2,273 100%-
6/30/2014 2,050 100%-
Three-Year Trend Information for PERS (Safety Plan)
(Amounts in Thousands)
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC) APC Contributed Obligation
6/30/2012 2,733$ 103%(7,385)$
6/30/2013 2,671 103%(8,141)
6/30/2014 2,779 102%(7,520)
For fiscal year 2013-2014, 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.
55
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 6: 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
6/30/2011 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%
6/30/2013 86,313 112,172 25,859 76.9% 14,681 176.14%
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, 2014, the covered payroll for employees in the
plan was $436,092. Total payroll for the City was $28,532,500. 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, 2014,
the employer and the employees each contributed an amount equal to $16,354. 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%
56
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 7: 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 $585,919 was made
during the 2013-2014 fiscal year and was not included in the June 30, 2014, actuarial
study. The purpose of the contribution was to pay current year premiums for retirees.
As a result, the City calculated and recorded a Net OPEB Liability, representing the
difference between the Annual Required Contribution (ARC) and actual contributions, as
presented below:
Annual required contribution (ARC)2,830,000$
Interest on Net OPEB Obligation 82,468
Adjustment to ARC (315,546)
Annual OPEB Cost 2,596,922
Contributions made (585,919)
(Decrease) increase in Net OPEB obligation 2,011,003
Net OPEB obligation (asset) June 30, 2013 8,372,606
Net OPEB obligation (asset) June 30, 2014 10,383,609$
The contribution rate of 21.06% is based on the ARC of $2,830,000, an amount
actuarially determined in accordance with the parameters of GASB Statement No. 45.
The ARC represents a level of funding that, if paid on an ongoing basis is projected to
cover the annual normal cost and the amortization of unfunded actuarial liabilities (or
funding excess) over a thirty year period.
Annual OPEB Costs and Net OPEB Obligation (Asset)
For the fiscal year 2013-2014, the City’s annual OPEB cost (expense) of $2,596,922 was
less than the ARC. The last three year trend information on the annual OPEB cost,
percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented
below:
Fiscal Year
End
Annual
OPEB
Cost
Actual
Contribution (Net
of Adjustments)
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Obligation
(Asset)
6/30/2012 1,643,364$ 489,624$ 30% 7,361,411$
6/30/2013 1,595,294 584,099 37% 8,372,606
6/30/2014 2,596,922 585,919 23% 10,383,609
57
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 7: 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.
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 6/30/2013 - 32,567,000 0.0% 18,902,000 172% 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 5, 2015 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, 2014, was twenty-seven years. The number of active participants is 327.
Note 8: 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
$5,000,000.
58
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 8: Insurance (Continued)
For the past three years, no settlements or claims payments have exceeded the amount of
the applicable insurance coverage. For the past two fiscal years, the changes in the City's
liability for claims payable are summarized as follows:
Beginning and Changes Less Claim Ending
Balance in Estimates Payments Balance
2012-2013 1,723,591$ 1,358,704$ (957,032)$ 2,125,263$
2013-2014 2,125,263 816,616 (585,386) 2,356,493
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 9: Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2014, was as follows:
Due To/From Other Funds
Nonmajor Nonmajor
General Governmental Enterprise Internal
Fund Funds Funds Service Total
Due to Other Funds:
Water 3,228,977$ 203,342$ 458,591$ 36,816$ 3,927,726$
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 $750,000 to the Capital
Projects Fund for various project expenditures.
59
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 9: Interfund Receivables, Payables and Transfers (Continued)
Interfund Transfers
Nonmajor
General Governmental Internal
Transfer Out:Fund Funds Service Funds Total
General Fund -$ 4,480,530$ 2,871$ 4,483,401$
Nonmajor Governmental
Funds 293,868 - - 293,868
Water Fund - 115,000 - 115,000
Light Fund - 96,683 - 96,683
Nonmajor Proprietary
Funds 657,421 - 113,000 770,421
Internal Service Funds 623,288 43,604 - 666,892
Total 1,574,577$ 4,735,817$ 115,871$ 6,426,265$
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.
60
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 10: 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.(400,298)$
Non-major governmental funds:
Utility Mitigation (172,092)
LACMTA 172,092
To transfer expenditures related to pavement project from prior year.
Major proprietary Funds:
Water Fund (322,422)
To correct over accruals from the prior year.
Light Fund 134,247
To properly capitalize construction in progress from prior year.
Non-major proprietary funds:
Sewer/Wastewater Fund 2,683,121
To properly capitalize construction in progress from prior year.
Fiduciary funds:
Successor Agency Fund
1,082,880
To restate payables that were disallowed by the Department of Finance.220,147
Beginning net position has been restated as follows:
Governmental Activities:
(400,298)$
Business-Type Activities:
Enterprise funds restatements detailed above 2,494,946
Total Net Asset Restatements 2,094,648$
Governmental fund restatements detailed above
To recognize revenue on the full accrual basis from the prior year.
61
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 11: Grants and Seizure Fund
The Grants and Seizure special revenue fund include the following items in its fund balance:
Grants & Seizures (7,477)$
Jack Williams Memorial 600
Grants & Seizures-Police 17
Asset Seizure Federal - Department of Justice 238,717
Asset Seizure County 23,871
Asset Seizure Drug and Gang 1,569
Office of Traffic Safety 2,762
Asset Seizure Federal - Department of Treasury 88
Inmate Welfare Fund 7,088
OTS Step Grant-2013 (7,419)
Wireless E911 State Grant (56,868)
2013 Homeland Security Grant (125,000)
Cities & Specified Excess Funding (21,246)
AQMD Tree Planting 3,111
Sr Cntr Cyn City Grant 4,214
Senior Restricted Donations 98
Public Library Grant 286,788
Library Restricted Donations 63,220
Gates Foundation 497
Broadband Grant (Lib)7,508
Family Place Grant 1,914
Book Clubs 467
Youth Programs 689
Summer Reading 3,481
Special Programs 451
CA Literacy Grant 24
Grass Roots ESL-FY14 (3,007)
General Plan Surcharge 519,366
Metro TOD Planning Grant (83,875)
AB29X Meters 86,607
Oil Block Grant 6,524
Beverage Container Recycling 44,332
Technology Grant 143,058
Safe Routes to Schools Grant (52,721)
CIP-Recreation Grants (6,520)
Rehab of Z Total 516
CIP-AZ Intermododal Transit (26,927)
Total 1,056,517$
62
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 12: 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, 2014, is as follows:
Assets:
Current assets 318,427$
Restricted assets 4,365,010
Capital assets 11,318,382
Total assets 16,001,819
Liabilities:
Current liabilities 941,807
Noncurrent liabilities 4,755,523
Total liabilities 5,697,330
Net position:
Net Investment in capital assets 10,603,392
Unrestricted (298,903)
Total net position 10,304,489$
Condensed Statement of Net Position
Sewer charges 2,577,662$
Depreciation expense (427,474)
Other operating expenses (1,774,822)
Operating income 375,366
Nonoperating revenues (expenses):
Investment earnings (1,151)
Interest expense (179,595)
Special franchise fees (52,404)
Transfers out (134,275)
Change in net Position 7,941
Beginning net position, as originally reported 7,613,427
Restatement 2,683,121
Ending net position 10,304,489$
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Net cash provided by (used in):
Operating activities 2,807,230$
Noncapital financing activities 324,316
Capital and related financing activities (3,847,288)
Investing activities (741)
Net decrease in cash (716,483)
Beginning cash and cash equivalents 5,081,493
Ending cash and cash equivalents 4,365,010$
Condensed Statement of Cash Flows
63
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 13: 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, 2014, 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 $47,460,000), 1% of SCPPA’s
$57,555,000 investment (at cost) in the Mead – Phoenix Transmission Project (with
related SCPPA indebtedness of $38,390,000), 2.2% of SCPPA’s $173,574,000
investment (at cost) in the Mead - Adelanto Transmission Project (with related SCPPA
indebtedness of $126,170,000), 14.7% of SCPPA’s $257,963,000 investment (at cost) in
the San Juan Generating Station (with related indebtedness of $71,880,000), and
4.2% of SCPPA’s $21,000 investment (at cost) in the Hoover Uprating Green Power
Project (with related SCPPA indebtedness of $7,930,000).
Note 14: Rate Stabilization Fund
The City of Azusa has provided for a rate stabilization fund in the amount of $9,845,901
(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 15: 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.
64
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: 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 2,767,955$
Restricted cash and Investments pooled with the City 4,160,910
Total Cash and Investments 6,928,865$
65
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
b. Capital Assets
An analysis of capital assets as of June 30, 2014, 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 746,536 - - 746,536
Infrastructure 85,698 - - 85,698
Total Accumulated Depreciation 832,234 - - 832,234
Total Capital Assets being
depreciated, net 1,313,999 - - 1,313,999
Capital Assets 1,724,419$ -$ -$ 1,724,419$
Balance
July 1, 2013
Balance
June 30, 2014
c. Long-Term Debt
The following debt was transferred from the Redevelopment Agency to the Successor
Agency as of February 1, 2012, as a result of the dissolution.
A description of long-term debt outstanding (excluding defeased debt) of the Successor
Agency as of June 30, 2014, follows:
Balance
July 1, 2013 Additions* Repayments
Balance
June 30, 2014
Due Within
One Year
Fiduciary Funds:
2003 Refunding TABs 7,385,000$ -$ (515,000)$ 6,870,000$ 530,000$
2005 TABS, Series A 9,708,527 102,882 - 9,811,409 -
2007 TABs, Series A 13,850,000 - (450,000) 13,400,000 480,000
2007 TABs, Series B 4,355,000 - (100,000) 4,255,000 105,000
2008 TABs, Series A 6,400,000 - (95,000) 6,305,000 100,000
2008 TABs, Series B 10,845,000 - (135,000) 10,710,000 145,000
Total Fiduciary Funds $ 52,543,527 $ 102,882 $ (1,295,000) 51,351,409 $ 1,360,000
Unamortized Discounts (704,433)
Total Long-term Debt 50,646,976$
*Addition of $102,882 related to accreted interest.
66
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
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 $89,283,693, 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 $5,097,292, and the debt service obligation on the bonds
was $4,220,110.
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, 2014, was
$6,870,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest, are as follows:
Principal Interest
2014-2015 530,000$ 286,248$
2015-2016 550,000 265,310
2016-2017 575,000 242,810
2017-2018 600,000 218,935
2018-2019 615,000 193,491
2019-2024 4,000,000 510,276
Totals 6,870,000$ 1,717,070$
2003 Tax Allocation Refunding
Bonds, Series A
67
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
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, 2014, was $9,811,409.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest are as follows:
Principal Interest
2014-2015 -$ 349,425$
2015-2016 - 349,425
2016-2017 - 349,425
2017-2018 - 349,425
2018-2019 - 349,425
2019-2024 915,675 2,096,550
2024-2029 4,135,734 1,564,763
2029-2034 4,760,000 539,775
Totals 9,811,409$ 5,948,213$
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, 2014, was $13,400,000.
68
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest are as follows:
Principal Interest
2014-2015 480,000$ 795,477$
2015-2016 505,000 767,084
2016-2017 535,000 737,106
2017-2018 565,000 705,399
2018-2019 605,000 671,114
2019-2024 3,240,000 2,767,988
2024-2029 1,905,000 2,018,891
2029-2034 3,250,000 1,218,008
2034-2039 2,315,000 171,124
Totals 13,400,000$ 9,852,191$
Bonds, Series A
2007 Tax Allocation
2007 Tax Allocation Refunding Bonds, Series B
The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area
Tax Allocation Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds.
Current Interest Bonds are subject to annual sinking fund installment payments
ranging from $80,000 to $140,000 due beginning August 1, 2008 through
August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum.
Term Bonds are due beginning August 1, 2022 through August 1, 2036, with
installment payments ranging from $150,000 to $305,000, bearing interest rates
ranging from 5.25% to 5.30% per annum. Debt service payments on the bonds are
payable from pledged tax increment revenues. The outstanding principal balance at
June 30, 2014, was $4,255,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest are as follows:
Principal Interest
2014-2015 105,000$ 217,405$
2015-2016 110,000 212,513
2016-2017 110,000 207,439
2017-2018 120,000 202,075
2018-2019 125,000 196,286
2019-2024 710,000 881,501
2024-2029 920,000 670,500
2029-2034 1,185,000 393,658
2034-2039 870,000 70,755
Totals 4,255,000$ 3,052,132$
Bonds, Series B
2007 Tax Allocation
69
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
2008 Tax Allocation Bonds, Series A
The Azusa Redevelopment Agency issued $6,715,000 Series A Merged Project Area
Tax Allocation Bonds, dated December 18, 2008 to finance redevelopment projects,
satisfy reserve requirements, and pay costs incurred with the bond issuance. The
bonds consist of serial bonds due in annual installments ranging from $70,000 to
$140,000 maturing on August 1, 2009 through August 1, 2018, and term bonds of
$1,850,000 due August 1, 2023 and $1,815,000 due August 1, 2028 and $2,045,000
due August 1, 2034. Serial bonds have interest rates ranging from 4.5% through
6.75%. The term bonds carry interest rates of 7.5% and 8.2%. Debt service
payments on the bonds are payable from pledged tax increment revenues. The
outstanding principal balance at June 30, 2014, was $6,305,000.
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest are as follows:
Principal Interest
2014-2015 100,000$ 479,275$
2015-2016 110,000 472,575
2016-2017 120,000 464,950
2017-2018 125,000 456,681
2018-2019 140,000 447,738
2019-2024 1,850,000 2,021,938
2024-2029 1,815,000 1,205,306
2029-2034 1,095,000 503,400
2034-2039 950,000 38,000
Totals 6,305,000$ 6,089,863$
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, 2014, was $10,710,000.
70
CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2014
Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued)
The annual requirements to amortize the outstanding bond indebtedness as of
June 30, 2014, including interest are as follows:
Principal Interest
2014-2015 145,000$ 733,133$
2015-2016 155,000 724,689
2016-2017 160,000 715,433
2017-2018 170,000 705,320
2018-2019 185,000 694,088
2019-2024 985,000 3,270,464
2024-2029 2,805,000 2,653,263
2029-2034 3,650,000 1,505,000
2034-2039 2,455,000 271,425
Totals 10,710,000$ 11,272,815$
Bonds, Series B
2008 Tax Allocation
d. Insurance.
The Successor Agency is covered under the City of Azusa’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City also apply to
the Successor Agency. Additional information as to coverage and self-insured retentions
can be found in Note 10.
Note 19: Subsequent Events
On September 30, 2014, the Successor Agency to the Redevelopment Agency of the City of
Azusa issued $10,470,000 of Subordinate Tax Allocation Refunding Bonds to provide funds
to refinance outstanding bonds of the Successor Agency.
71
THIS PAGE INTENTIONALLY LEFT BLANK
72
REQUIRED SUPPLEMENTARY INFORMATION
73
CITY OF AZUSA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2014
Budget Information
General Budget Policies
The City adheres to the following procedures in establishing the budgetary data reflected in its
financial statements:
1. In May of each year, the City Manager submits to the City Council a proposed financial plan
with an annual operating budget for the upcoming fiscal year commencing July 1. The
operating budget includes proposed expenditures and the sources of financing.
2. Public hearings are conducted at City Council meetings to obtain taxpayer comments.
3. On or before July 1, the financial plan for the fiscal year is adopted by Council action.
4. The City Manager is authorized to transfer funds appropriated with respect to those
classifications designated as other services and material and supplies within the same
department. The City Manager may transfer appropriated funds from any classification within
other expenditure categories to the capital outlay classification within the same department
only; however, any revisions that alter the total expenditures of any department must be
approved by the City Council. Activities of the General Fund, Special Revenue Funds, Capital
Projects Funds and Debt Service Funds are included in the annual appropriated budget. As
an additional internal control mechanism, project-length financial plans are adopted for the
Capital Improvement Program. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established at the
department level within the General Fund and at the fund level for total expenditures and
transfers out for all other budgeted funds.
5. Formal budgetary integration is employed as a management control device during the year
for the governmental funds.
6. Legally adopted budgets for all governmental funds are established on a basis consistent
with generally accepted accounting principles (GAAP). For the current fiscal year, the HOME
Program special revenue fund had no adopted budget.
Excess of Expenditures Over Appropriation
For purposes of evaluating legal compliance at the budgetary level of control (that is, the level at
which expenditures cannot legally exceed the appropriated amount), control is established at the
department level within the General Fund and at the fund level for total expenditures and
transfers out for all other budgeted funds.
Expenditures Appropriations Excess
General Fund:
General Government:
Purchasing 215,042$ 213,095$ (1,947)$
Business License 264,928 263,470 (1,458)
Public Safety:
INF 340,097 337,960 (2,137)
Parks and Recreation:
Recreation 1,365,585 1,361,620 (3,965)
Fund
74
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 17,298,848$ 17,298,848$ 17,298,848$ -$
Resources (Inflows):
Taxes 27,352,225 26,684,225 27,289,357 605,132
Assessments 2,259,605 2,159,605 2,216,830 57,225
Licenses and permits 798,500 990,800 1,586,117 595,317
Intergovernmental 281,280 281,280 336,899 55,619
Charges for services 1,366,035 2,085,155 2,515,597 430,442
Use of money and property 90,000 88,650 89,594 944
Fines and forfeitures 881,500 1,221,500 1,343,318 121,818
Contributions 20,500 20,500 16,671 (3,829)
Miscellaneous 126,500 112,215 736,159 623,944
Transfers in 1,602,265 1,602,265 1,574,577 (27,688)
Amounts Available for Appropriations 52,077,258 52,545,043 55,003,967 2,458,924
Charges to Appropriation (Outflow):
General government
City council 133,965 133,965 125,575 8,390
City Attorney 250,000 250,000 237,607 12,393
Administration 395,670 412,740 401,900 10,840
Promotion / Membership 168,995 168,995 154,503 14,492
City Clerk 399,935 399,935 378,471 21,464
Library Services - General 967,175 967,175 963,137 4,038
Library Services - Youth 21,930 21,930 20,854 1,076
Finance - Accounting 743,650 803,050 802,928 122
Cash Management 149,245 154,345 153,980 365
Purchasing 213,095 213,095 215,042 (1,947)
Printing Services 10,700 10,700 7,884 2,816
Human Resources 351,620 358,990 354,606 4,384
City-wide 2,350,165 2,381,465 2,145,257 236,208
Business License 262,970 263,470 264,928 (1,458)
Public safety
Police 15,427,600 15,672,900 15,559,123 113,777
Emergency Services 10,845 10,845 4,858 5,987
Police Department Contracts 746,585 746,585 553,237 193,348
Area D 100,000 115,000 114,995 5
Pension Safety 5,000 5,000 2,000 3,000
ESPN X Games - 5,715 5,715 -
INF 376,960 337,960 340,097 (2,137)
Community development
Planning 435,945 435,945 426,481 9,464
Building Regulation 690,680 750,680 729,798 20,882
Code Enforcement 504,260 504,260 489,732 14,528
Parks and recreation
Recreation 1,338,740 1,361,620 1,365,585 (3,965)
Parks Maintenance 1,525,900 1,572,900 1,556,767 16,133
Senior Programs 152,250 152,250 146,101 6,149
Women's Club 24,155 24,155 20,304 3,851
Public works
Engineering Services 55,820 55,820 48,762 7,058
Graffiti Removal 71,145 71,145 40,847 30,298
Facilities Maintenance 430,635 464,295 458,459 5,836
Capital outlay 94,825 287,825 260,864 26,961
Debt service:
Principal retirement 780,000 1,462,200 1,461,996 204
Interest and fiscal charges 915,935 330,935 290,225 40,710
Transfers out 4,552,180 4,598,054 4,483,401 114,653
Total Charges to Appropriations 34,658,575 35,505,944 34,586,019 919,925
Budgetary Fund Balance, June 30 17,418,683$ 17,039,099$ 20,417,948$ 3,378,849$
75
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
Assets:
Pooled cash and investments 119,297$ 382,163$ 1,772,914$ -$
Receivables:
Accounts - 32,398 2,630 234,631
Taxes 184,118 - - -
Notes and loans 249 - - 57,237
Accrued interest - 69 342 -
Prepaid costs - - - -
Deposits - - 466 -
Restricted assets:
Cash and investments - - - -
Cash and investments with fiscal agents - - - -
Total Assets 303,664$ 414,630$ 1,776,352$ 291,868$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 51,539$ 32,096$ 142,423$ 53,205$
Accrued liabilities 27,747 39,262 8,635 3,906
Unearned revenues 80,963 - - -
Due to other funds - - - 178,461
Advances from other funds - - - -
Total Liabilities 160,249 71,358 151,058 235,572
Deferred Inflows of Resources:
Unavailable revenues - - - 175,166
Total Deferred Inflows of Resources - - - 175,166
Fund Balances:
Nonspendable:
Prepaid costs - - - -
Notes and loans 249 - - -
Deposits - - 466 -
Restricted for:
Community development projects 143,166 343,272 1,624,828 -
Public safety - - - -
Capital Projects - - - -
Debt service - - - -
Unassigned - - - (118,870)
Fund Balance Total 143,415 343,272 1,625,294 (118,870)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 303,664$ 414,630$ 1,776,352$ 291,868$
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, 2014
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)
-$ 10,269$ 262,001$ 2,299,115$
40,133 41,638 15,951 427,797
- - - -
- - - -
- - 51 -
- - - 4,048
- - - -
- - - -
- - - -
40,133$ 51,907$ 278,003$ 2,730,960$
17,247$ 8,205$ 3,522$ 690,947$
5,316 3,765 - 2,125
- - - 629,402
17,570 - - -
- - - -
40,133 11,970 3,522 1,322,474
- - 15,370 351,969
- - 15,370 351,969
- - - 4,048
- - - -
- - - -
- 39,937 - -
- - - 1,052,469
- - 259,111 -
- - - -
- - - -
- 39,937 259,111 1,056,517
40,133$ 51,907$ 278,003$ 2,730,960$
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, 2014
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)
85,861$ -$ -$ 696,959$
- - - -
- - - 3,007
- - - -
- - - 161
- - 6,600 -
- - - -
- - - -
- - - -
85,861$ -$ 6,600$ 700,127$
964$ -$ -$ 8,539$
- - - 4,558
44,627 - - -
- - 6,600 -
- - - -
45,591 - 6,600 13,097
- - - -
- - - -
- - 6,600 -
- - - -
- - - -
- - - -
40,270 - - -
- - - 687,030
- - - -
- - (6,600) -
40,270 - 687,030
85,861$ -$ 6,600$ 700,127$
Special Revenue Funds
Supplemental
Law
Enforcement Fire Safety
COPS
Universal
Hiring
Monrovia
Nursery
78
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
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)
-$ 295,365$ 1,503,038$ -$
711 - - -
- - - -
- - - -
- - 308 -
- - - -
- - - -
- - - -
- - - -
711$ 295,365$ 1,503,346$ -$
-$ -$ -$ -$
- - - -
- - - -
711 - - -
- - - -
711 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 1,503,346 -
- - - -
- 295,365 - -
- - - -
- - - -
- 295,365 1,503,346 -
711$ 295,365$ 1,503,346$ -$
Special Revenue Funds
Employee
Benefits
Utility
Mitigation Highway 39 LACMTA
79
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
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)
Capital
Projects
Funds
1,394,948$ 429,218$ 497,963$ 23,665$
907 7,382 - -
- - - -
- - - -
247 - 99 4
- - - -
- - - -
- - - -
- - - -
1,396,102$ 436,600$ 498,062$ 23,669$
21$ 130,655$ -$ -$
7,998 1,638 - -
- - - -
- - - -
- - - -
8,019 132,293 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
1,388,083 304,307 498,062 23,669
- - - -
- - - -
1,388,083 304,307 498,062 23,669
1,396,102$ 436,600$ 498,062$ 23,669$
Special Revenue Funds
Measure R AB939 Fee
Rosedale
Traffic
Mitigation Park in-lieu
80
CITY OF AZUSA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
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
Total
Governmental
Funds
719,166$ 540,516$ 1,882$ 11,034,340$
- - - 804,178
- - - 187,125
- - 2,540,000 2,597,486
- 108 4 1,393
- - - 10,648
- - - 466
30,728 - - 30,728
- - 482,591 482,591
749,894$ 540,624$ 3,024,477$ 15,148,955$
-$ 4,000$ 1,850$ 1,145,213$
- - - 104,950
- - - 754,992
- - - 203,342
750,000 - - 750,000
750,000 4,000 1,850 2,958,497
- - 2,540,000 3,082,505
- - 2,540,000 3,082,505
- - - 10,648
- - - 249
- - - 466
- 536,624 - 4,191,173
- - - 1,092,739
- - - 3,455,627
- - 482,627 482,627
(106) - - (125,576)
(106) 536,624 482,627 9,107,953
749,894$ 540,624$ 3,024,477$ 15,148,955$
Capital Projects Funds
Debt Service
Funds
Capital
Projects
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, 2014
Revenues:
Taxes -$ 807,620$ 669,469$ -$
Intergovernmental 1,628,562 83,421 - 429,891
Charges for services - 22,823 74,271 -
Use of money and property 255 1,067 8,953 -
Contributions - - - -
Miscellaneous 47,447 9 - 941
Total Revenues 1,676,264 914,940 752,693 430,832
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - 345,169
Parks and recreation 57,321 - - -
Public works 1,433,156 632,300 471,885 -
Capital outlay 122,750 - 295,089 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 1,613,227 632,300 766,974 345,169
Excess (Deficiency) of Revenues
Over (Under) Expenditures 63,037 282,640 (14,281) 85,663
Other Financing Sources (Uses):
Transfers in 35,550 - - -
Transfers out - - - -
Total Other Financing Sources (Uses)35,550 - - -
Net Change in Fund Balances 98,587 282,640 (14,281) 85,663
Fund Balances, Beginning of Year 44,828 60,632 1,639,575 (204,533)
Restatements - - - -
Fund Balances, Beginning of Year, as Restated 44,828 60,632 1,639,575 (204,533)
Fund Balances, End of Year 143,415$ 343,272$ 1,625,294$ (118,870)$
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, 2014
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)
-$ -$ -$ -$
142,919 - 43,601 1,727,454
- 850,741 16,630 105,248
- (902) 1,306 6,777
65,162 - - 3,037
17,708 - - 9,874
225,789 849,839 61,537 1,852,390
- 263,845 - 182,335
- - - 122,899
- 573,623 - -
348,730 - - 66,683
- - 41,669 213,992
- - - 1,472,982
- - - -
- - - -
348,730 837,468 41,669 2,058,891
(122,941) 12,371 19,868 (206,501)
122,940 - - 5,874
- - - -
122,940 - - 5,874
(1) 12,371 19,868 (200,627)
1 27,566 239,243 1,257,144
- - - -
1 27,566 239,243 1,257,144
-$ 39,937$ 259,111$ 1,056,517$
Grants and
Seizure
Special Revenue Funds
Senior
Nutrition
Public Benefit
Program
Air Quality
Improvement
83
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
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
-$ -$ -$ -$
57,951 - - -
- 80,077 - 541,894
399 - - 3,699
- - - -
- - - -
58,350 80,077 - 545,593
- - - -
57,952 4,116,214 - -
- - - -
- - - -
- - - 221,419
- - - -
- - - -
- - - -
57,952 4,116,214 - 221,419
398 (4,036,137) - 324,174
- 4,036,137 - -
- - - (293,868)
- 4,036,137 - (293,868)
398 - - 30,306
39,872 - - 656,724
- - - -
39,872 - - 656,724
40,270$ -$ -$ 687,030$
Supplemental
Law
Enforcement Fire Safety
COPS
Universal
Hiring
Monrovia
Nursery
Special Revenue Funds
84
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
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)
-$ -$ -$ -$
- - - -
- - - -
- - 8,243 -
- - - -
- - - -
- - 8,243 -
45,842 - 39,148 -
- - - -
- - - -
- - - -
- 191,018 - -
- - - -
- - - -
- - - -
45,842 191,018 39,148 -
(45,842) (191,018) (30,905) -
45,842 182,179 - -
- - - -
45,842 182,179 - -
- (8,839) (30,905) -
- 476,296 1,534,251 (172,092)
- (172,092) - 172,092
- 304,204 1,534,251 -
-$ 295,365$ 1,503,346$ -$
Special Revenue Funds
Utility
Mitigation Highway 39 LACMTA
Employee
Benefits
85
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
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
499,941$ -$ -$ -$
- - - 19,050
- 189,713 - -
6,249 - 2,665 63
- - - -
4,795 - - -
510,985 189,713 2,665 19,113
- - - -
- - - -
- - - -
- - - -
217,329 274,437 - -
- - - -
- - - -
- - - -
217,329 274,437 - -
293,656 (84,724) 2,665 19,113
- - - -
- - - -
- - - -
293,656 (84,724) 2,665 19,113
1,094,427 389,031 495,397 4,556
- - - -
1,094,427 389,031 495,397 4,556
1,388,083$ 304,307$ 498,062$ 23,669$
Special Revenue Funds
Park in-lieu
Rosedale
Traffic
Mitigation Measure R AB939 Fee
86
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
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
Total Nonmajor
Governmental
Funds
-$ -$ -$ 1,977,030$
- - - 4,132,849
- - - 1,881,397
6 3,038 103 41,921
- - - 68,199
- - 53,266 134,040
6 3,038 53,369 8,235,436
- - 4,625 535,795
- - - 4,297,065
112 - - 918,904
- - - 472,734
- - - 3,697,205
- 52,797 - 1,943,618
- - 245,000 245,000
- - 111,040 111,040
112 52,797 360,665 12,221,361
(106) (49,759) (307,296) (3,985,925)
- - 307,295 4,735,817
- - - (293,868)
- - 307,295 4,441,949
(106) (49,759) (1) 456,024
- 586,383 482,628 8,651,929
- - - -
- 586,383 482,628 8,651,929
(106)$ 536,624$ 482,627$ 9,107,953$
Capital Projects Funds
Public
Financing
Authority
Capital
Projects
Public Works
Endowment
Debt Service
Funds
87
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE TAX
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 44,828$ 44,828$ 44,828$ -$
Resources (Inflows):
Intergovernmental 1,461,445 1,586,445 1,628,562 42,117
Use of money and property 10,000 10,000 255 (9,745)
Miscellaneous - 47,446 47,447 1
Transfers in 124,550 124,550 35,550 (89,000)
Amounts Available for Appropriations 1,640,823 1,813,269 1,756,642 (56,627)
Charges to Appropriation (Outflow):
Parks and recreation 59,000 59,000 57,321 1,679
Public works 1,375,005 1,442,451 1,433,156 9,295
Capital outlay 870 125,870 122,750 3,120
Transfers out - 79,644 - 79,644
Total Charges to Appropriations 1,434,875 1,706,965 1,613,227 93,738
Budgetary Fund Balance, June 30 205,948$ 106,304$ 143,415$ 37,111$
88
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 60,632$ 60,632$ 60,632$ -$
Resources (Inflows):
Taxes 793,480 793,480 807,620 14,140
Intergovernmental 114,000 114,000 83,421 (30,579)
Charges for services 10,615 10,615 22,823 12,208
Use of money and property 7,000 7,000 1,067 (5,933)
Miscellaneous - - 9 9
Amounts Available for Appropriations 985,727 985,727 975,572 (10,155)
Charges to Appropriation (Outflow):
Public works 832,180 832,180 632,300 199,880
Total Charges to Appropriations 832,180 832,180 632,300 199,880
Budgetary Fund Balance, June 30 153,547$ 153,547$ 343,272$ 189,725$
89
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,639,575$ 1,639,575$ 1,639,575$ -$
Resources (Inflows):
Taxes 658,170 670,170 669,469 (701)
Intergovernmental - 1,330,232 - (1,330,232)
Charges for services 91,565 91,565 74,271 (17,294)
Use of money and property 5,000 5,000 8,953 3,953
Amounts Available for Appropriations 2,394,310 3,736,542 2,392,268 (1,344,274)
Charges to Appropriation (Outflow):
Public works 696,510 708,510 471,885 236,625
Capital outlay to - 1,763,883 295,089 1,468,794
Total Charges to Appropriations 696,510 2,472,393 766,974 1,705,419
Budgetary Fund Balance, June 30 1,697,800$ 1,264,149$ 1,625,294$ 361,145$
90
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated (204,533)$ (204,533)$ (204,533)$ -$
Resources (Inflows):
Intergovernmental 750,875 750,875 429,891 (320,984)
Miscellaneous - - 941 941
Amounts Available for Appropriations 546,342 546,342 226,299 (320,043)
Charges to Appropriation (Outflow):
Community development 382,475 382,475 345,169 37,306
Capital outlay 149,000 149,000 - 149,000
Total Charges to Appropriations 531,475 531,475 345,169 186,306
Budgetary Fund Balance, June 30 14,867$ 14,867$ (118,870)$ (133,737)$
91
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SENIOR NUTRITION
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1$ 1$ 1$ -$
Resources (Inflows):
Intergovernmental 114,845 81,195 142,919 61,724
Contributions 75,100 80,580 65,162 (15,418)
Miscellaneous - - 17,708 17,708
Transfers in 139,920 139,920 122,940 (16,980)
Amounts Available for Appropriations 329,866 301,696 348,730 47,034
Charges to Appropriation (Outflow):
Parks and recreation 334,775 375,525 348,730 26,795
Total Charges to Appropriations 334,775 375,525 348,730 26,795
Budgetary Fund Balance, June 30 (4,909)$ (73,829)$ -$ 73,829$
92
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC BENEFIT PROGRAM
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 27,566$ 27,566$ 27,566$ -$
Resources (Inflows):
Charges for services 647,090 647,090 850,741 203,651
Use of money and property 4,000 4,000 (902) (4,902)
Amounts Available for Appropriations 678,656 678,656 877,405 198,749
Charges to Appropriation (Outflow):
General government 205,395 265,395 263,845 1,550
Community development 568,500 578,500 573,623 4,877
Total Charges to Appropriations 773,895 843,895 837,468 6,427
Budgetary Fund Balance, June 30 (95,239)$ (165,239)$ 39,937$ 205,176$
93
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 239,243$ 239,243$ 239,243$ -$
Resources (Inflows):
Intergovernmental 56,500 56,500 43,601 (12,899)
Charges for services 17,645 17,645 16,630 (1,015)
Use of money and property 1,400 1,400 1,306 (94)
Amounts Available for Appropriations 314,788 314,788 300,780 (14,008)
Charges to Appropriation (Outflow):
Public works 48,705 48,705 41,669 7,036
Capital outlay 39,240 39,240 - 39,240
Total Charges to Appropriations 87,945 87,945 41,669 46,276
Budgetary Fund Balance, June 30 226,843$ 226,843$ 259,111$ 32,268$
94
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
GRANTS AND SEIZURE
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,257,144$ 1,257,144$ 1,257,144$ -$
Resources (Inflows):
Intergovernmental 1,373,420 4,088,867 1,727,454 (2,361,413)
Charges for services - - 105,248 105,248
Use of money and property 3,000 3,000 6,777 3,777
Contributions 2,500 2,500 3,037 537
Miscellaneous 5,000 5,000 9,874 4,874
Transfers in - 47,474 5,874 (41,600)
Amounts Available for Appropriations 2,641,064 5,403,985 3,115,408 (2,288,577)
Charges to Appropriation (Outflow):
General government 462,500 478,200 182,335 295,865
Public safety 214,335 251,899 122,899 129,000
Parks and recreation 20,345 44,285 66,683 (22,398)
Public works 55,670 827,533 213,992 613,541
Capital outlay 317,250 2,854,366 1,472,982 1,381,384
Transfers out - 1,600 - 1,600
Total Charges to Appropriations 1,070,100 4,457,883 2,058,891 2,398,992
Budgetary Fund Balance, June 30 1,570,964$ 946,102$ 1,056,517$ 110,415$
95
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
SUPPLEMENTAL LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 39,872$ 39,872$ 39,872$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 57,951 (42,049)
Use of money and property - - 399 399
Amounts Available for Appropriations 139,872 139,872 98,222 (41,650)
Charges to Appropriation (Outflow):
Public safety - 58,150 57,952 198
Total Charges to Appropriations - 58,150 57,952 198
Budgetary Fund Balance, June 30 139,872$ 81,722$ 40,270$ (41,452)$
96
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
FIRE SAFETY
YEAR ENDED JUNE 30, 2014
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 80,077 (9,923)
Transfers in (4,043,175) (4,043,175) 4,036,137 8,079,312
Amounts Available for Appropriations (3,953,175) (3,953,175) 4,116,214 8,069,389
Charges to Appropriation (Outflow):
Public safety 4,133,175 4,133,175 4,116,214 16,961
Total Charges to Appropriations 4,133,175 4,133,175 4,116,214 16,961
Budgetary Fund Balance, June 30 (8,086,350)$ (8,086,350)$ -$ 8,086,350$
97
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MONROVIA NURSERY
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 656,724$ 656,724$ 656,724$ -$
Resources (Inflows):
Charges for services 365,000 365,000 541,894 176,894
Use of money and property 7,500 7,500 3,699 (3,801)
Amounts Available for Appropriations 1,029,224 1,029,224 1,202,317 173,093
Charges to Appropriation (Outflow):
Public works 319,125 319,125 221,419 97,706
Transfers out 292,485 292,485 293,868 (1,383)
Total Charges to Appropriations 611,610 611,610 515,287 96,323
Budgetary Fund Balance, June 30 417,614$ 417,614$ 687,030$ 269,416$
98
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
EMPLOYEE BENEFITS
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Transfers in 45,525 45,845 45,842 (3)
Amounts Available for Appropriations 45,525 45,845 45,842 (3)
Charges to Appropriation (Outflow):
General government 45,525 45,845 45,842 3
Total Charges to Appropriations 45,525 45,845 45,842 3
Budgetary Fund Balance, June 30 -$ -$ -$ -$
99
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
UTILITY MITIGATION
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 304,204$ 304,204$ 304,204$ -$
Resources (Inflows):
Transfers in 200,000 200,000 182,179 (17,821)
Amounts Available for Appropriations 504,204 504,204 486,383 (17,821)
Charges to Appropriation (Outflow):
Public works - 730,000 191,018 538,982
Total Charges to Appropriations - 730,000 191,018 538,982
Budgetary Fund Balance, June 30 504,204$ (225,796)$ 295,365$ 521,161$
100
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,094,427$ 1,094,427$ 1,094,427$ -$
Resources (Inflows):
Taxes 493,625 493,625 499,941 6,316
Use of money and property 10,000 10,000 6,249 (3,751)
Miscellaneous - - 4,795 4,795
Amounts Available for Appropriations 1,598,052 1,598,052 1,605,412 7,360
Charges to Appropriation (Outflow):
Public works 212,535 341,535 217,329 124,206
Total Charges to Appropriations 212,535 341,535 217,329 124,206
Budgetary Fund Balance, June 30 1,385,517$ 1,256,517$ 1,388,083$ 131,566$
101
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
AB939 FEE
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 389,031$ 389,031$ 389,031$ -$
Resources (Inflows):
Charges for services 201,100 201,100 189,713 (11,387)
Use of money and property 3,000 3,000 - (3,000)
Amounts Available for Appropriations 593,131 593,131 578,744 (14,387)
Charges to Appropriation (Outflow):
Public works 162,635 327,565 274,437 53,128
Total Charges to Appropriations 162,635 327,565 274,437 53,128
Budgetary Fund Balance, June 30 430,496$ 265,566$ 304,307$ 38,741$
102
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PARK IN-LIEU
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,556$ 4,556$ 4,556$ -$
Resources (Inflows):
Intergovernmental 2,000 2,000 19,050 17,050
Use of money and property 20 20 63 43
Amounts Available for Appropriations 6,576 6,576 23,669 17,093
Budgetary Fund Balance, June 30 6,576$ 6,576$ 23,669$ 17,093$
103
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC WORKS ENDOWMENT
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 586,383$ 586,383$ 586,383$ -$
Resources (Inflows):
Use of money and property - - 3,038 3,038
Amounts Available for Appropriations 586,383 586,383 589,421 3,038
Charges to Appropriation (Outflow):
Capital outlay - 86,235 52,797 33,438
Total Charges to Appropriations - 86,235 52,797 33,438
Budgetary Fund Balance, June 30 586,383$ 500,148$ 536,624$ 36,476$
104
CITY OF AZUSA
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2014
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 482,628$ 482,628$ 482,628$ -$
Resources (Inflows):
Use of money and property 100 100 103 3
Miscellaneous - - 53,266 53,266
Transfers in 360,665 360,665 307,295 (53,370)
Amounts Available for Appropriations 843,393 843,393 843,292 (101)
Charges to Appropriation (Outflow):
General government 4,625 4,625 4,625 -
Debt service:
Principal retirement 245,000 245,000 245,000 -
Interest and fiscal charges 111,040 111,040 111,040 -
Total Charges to Appropriations 360,665 360,665 360,665 -
Budgetary Fund Balance, June 30 482,728$ 482,728$ 482,627$ (101)$
105
CITY OF AZUSA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2014
Totals
Assets:
Current:
Cash and investments -$ 186,020$ 186,020$
Receivables:
Accounts 313,969 408,753 722,722
Accrued interest 34 - 34
Prepaid costs 4,424 - 4,424
Restricted:
Cash with fiscal agent 4,365,010 - 4,365,010
Total Current Assets 4,683,437 594,773 5,278,210
Noncurrent:
Capital assets - net of accumulated depreciation 11,318,382 - 11,318,382
Total Noncurrent Assets 11,318,382 - 11,318,382
Total Assets 16,001,819$ 594,773$ 16,596,592$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 48,513$ 455,004$ 503,517$
Accrued liabilities 23,553 - 23,553
Due to other funds 458,591 - 458,591
Accrued compensated absences 61,150 - 61,150
Bonds, notes, and capital leases 350,000 - 350,000
Total Current Liabilities 941,807 455,004 1,396,811
Noncurrent:
Accrued compensated absences 25,523 - 25,523
Bonds, notes, and capital leases 4,730,000 - 4,730,000
Total Noncurrent Liabilities 4,755,523 - 4,755,523
Total Liabilities 5,697,330 455,004 6,152,334
Net Position:
Net investment in capital assets 10,603,392 - 10,603,392
Unrestricted (298,903) 139,769 (159,134)
Total Net Position 10,304,489 139,769 10,444,258
Total Liabilities and Net Position 16,001,819$ 594,773$ 16,596,592$
Sewer/
Wastewater
Refuse
Contract
Business-Type Activities - Enterprise Funds
106
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2014
Totals
Operating Revenues:
Sales and service charges 2,566,676$ 3,058,956$ 5,625,632$
Miscellaneous 10,986 6,200 17,186
Total Operating Revenues 2,577,662 3,065,156 5,642,818
Operating Expenses:
Administration and general 1,122,412 - 1,122,412
Treatment 652,410 - 652,410
Refuse collection - 2,938,255 2,938,255
Depreciation expense 427,474 - 427,474
Total Operating Expenses 2,202,296 2,938,255 5,140,551
Operating Income (Loss)375,366 126,901 502,267
Nonoperating Revenues (Expenses):
Taxes - 542,409 542,409
Interest revenue (1,151) - (1,151)
Interest expense (179,595) - (179,595)
Special franchise fees (52,404) - (52,404)
Total Nonoperating
Revenues (Expenses)(233,150) 542,409 309,259
Income (Loss) Before Transfers 142,216 669,310 811,526
Transfers out (134,275) (636,146) (770,421)
Changes in Net Position 7,941 33,164 41,105
Net Position:
Beginning of Year, as originally reported 7,613,427 106,605 7,720,032
Restatements 2,683,121 - 2,683,121
Beginning of Fiscal Year, as restated 10,296,548 106,605 10,403,153
End of Fiscal Year 10,304,489$ 139,769$ 10,444,258$
Sewer/
Wastewater
Refuse
Contract
Business-Type Activities - Enterprise Funds
107
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2014
Totals
Cash Flows from Operating Activities:
Cash received from customers and users 5,274,522$ 3,096,388$ 8,370,910$
Cash paid to suppliers for goods and services (1,319,962) (2,944,908) (4,264,870)
Cash paid to employees for services (1,147,330) - (1,147,330)
Net Cash Provided by (Used in) Operating Activities 2,807,230 151,480 2,958,710
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (134,275) (636,146) (770,421)
Repayment received from other funds 458,591 - 458,591
Net Cash Used in Non-Capital
Financing Activities 324,316 (636,146) (311,830)
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (3,290,289) - (3,290,289)
Principal paid on capital debt (325,000) - (325,000)
Interest paid on capital debt (179,595) - (179,595)
Special franchise fees (52,404) - (52,404)
Taxes - 542,409 542,409
Net Cash Provided by (Used in)
Capital and Related Financing Activities (3,847,288) 542,409 (3,304,879)
Cash Flows from Investing Activities:
Repayment received on loans 87 - 87
Interest received (828) - (828)
Net Cash Provided by
Investing Activities (741) - (741)
Net Decrease in Cash
and Cash Equivalents (716,483) 57,743 (658,740)
Cash and Cash Equivalents at Beginning of Year 5,081,493 128,277 5,209,770
Cash and Cash Equivalents at End of Year 4,365,010$ 186,020$ 4,551,030$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)375,366$ 126,901$ 502,267$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 427,474 - 427,474
Restatement 2,683,121 - 2,683,121
(Increase) decrease in accounts receivable 13,739 31,232 44,971
(Increase) decrease in prepaid expense (4,424) - (4,424)
Increase (decrease) in accounts payable (540,007) (6,653) (546,660)
Increase (decrease) in accrued liabilities (2,154) - (2,154)
Increase (decrease) in deposits payable (120,967) - (120,967)
Increase (decrease) in compensated absences (24,918) - (24,918)
Total Adjustments 2,431,864 24,579 2,456,443
Net Cash Provided by (Used in)
Operating Activities 2,807,230$ 151,480$ 2,958,710$
There were no Non-Cash Investing, Capital, and Financing Activities
Sewer/
Wastewater
Refuse
Contract
Business-Type Activities - Enterprise Funds
108
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109
CITY OF AZUSA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2014
Assets:
Current:
Cash and investments 240,430$ 1,835,234$ -$ 8,083$
Receivables:
Accounts 1,159,104 6,420 96 -
Notes and loans 1,351 537 - -
Accrued interest 7,138 234 - 2
Prepaid costs - 1,812 - -
Total Current Assets 1,408,023 1,844,237 96 8,085
Noncurrent:
Capital assets - net of accumulated depreciation 612,026 - 33,771 736,588
Total Noncurrent Assets 612,026 - 33,771 736,588
Total Assets 2,020,049$ 1,844,237$ 33,867$ 744,673$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 113,857$ 440,489$ -$ -$
Accrued liabilities 80,467 2,136 561 -
Due to other funds - - 36,816 -
Accrued compensated absences 150,133 1,625 - -
Accrued claims and judgments - 649,109 - -
Total Current Liabilities 344,457 1,093,359 37,377 -
Noncurrent:
Accrued compensated absences 116,583 541 - -
Accrued claims and judgments - 1,707,384 - -
Total Noncurrent Liabilities 116,583 1,707,925 - -
Total Liabilities 461,040 2,801,284 37,377 -
Net Position:
Net investment in capital assets 612,026 - 33,771 736,588
Unrestricted 946,983 (957,047) (37,281) 8,085
Total Net Position 1,559,009 (957,047) (3,510) 744,673
Total Liabilities and Net Position 2,020,049$ 1,844,237$ 33,867$ 744,673$
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, 2014
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
216,161$ 2,299,908$
- 1,165,620
- 1,888
- 7,374
- 1,812
216,161 3,476,602
- 1,382,385
- 1,382,385
216,161$ 4,858,987$
46,750$ 601,096$
28,338 111,502
- 36,816
141,071 292,829
- 649,109
216,159 1,691,352
32,278 149,402
- 1,707,384
32,278 1,856,786
248,437 3,548,138
- 1,382,385
(32,276) (71,536)
(32,276) 1,310,849
216,161$ 4,858,987$
IT Services
Governmental Activities - Internal
Service Funds
111
CITY OF AZUSA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2014
Operating Revenues:
Sales and service charges 6,323,913$ 2,346,041$ -$ -$
Miscellaneous - 24,062 - 273,300
Total Operating Revenues 6,323,913 2,370,103 - 273,300
Operating Expenses:
Administration and general 4,932,716 1,550,989 2,872 -
Source of supply 137,881 - - -
Claims expense 597,925 1,356,280 - -
Depreciation expense 103,615 - 3,510 147,356
Total Operating Expenses 5,772,137 2,907,269 6,382 147,356
Operating Income (Loss)551,776 (537,166) (6,382) 125,944
Nonoperating Revenues (Expenses):
Interest revenue - 6,572 - 515
Total Nonoperating
Revenues (Expenses)- 6,572 - 515
Income (Loss) Before Transfers and 551,776 (530,594) (6,382) 126,459
extraordinary items
Transfers in 113,000 - 2,871 -
Transfers out (666,892) - - -
Changes in Net Position (2,116) (530,594) (3,511) 126,459
Net Position:
Beginning of Year 1,561,125 (426,453) 1 618,214
End of Fiscal Year 1,559,009$ (957,047)$ (3,510)$ 744,673$
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, 2014
Operating Revenues:
Sales and service charges 6,323,913$ 2,346,041$ -$ -$
Miscellaneous - 24,062 - 273,300
Total Operating Revenues 6,323,913 2,370,103 - 273,300
Operating Expenses:
Administration and general 4,932,716 1,550,989 2,872 -
Source of supply 137,881 - - -
Claims expense 597,925 1,356,280 - -
Depreciation expense 103,615 - 3,510 147,356
Total Operating Expenses 5,772,137 2,907,269 6,382 147,356
Operating Income (Loss)551,776 (537,166) (6,382) 125,944
Nonoperating Revenues (Expenses):
Interest revenue - 6,572 - 515
Total Nonoperating
Revenues (Expenses)- 6,572 - 515
Income (Loss) Before Transfers 551,776 (530,594) (6,382) 126,459
Transfers in 113,000 - 2,871 -
Transfers out (666,892) - - -
Changes in Net Position (2,116) (530,594) (3,511) 126,459
Net Position:
Beginning of Year 1,561,125 (426,453) 1 618,214
End of Fiscal Year 1,559,009$ (957,047)$ (3,510)$ 744,673$
Consumer
Services Self Insurance
Central
Services
Equipment
Replacement
Governmental Activities - Internal Service Funds
113
CITY OF AZUSA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2014
Cash Flows from Operating Activities:
Cash received from customers and users 5,176,976$ 2,366,448$ -$ 273,300$
Cash paid to suppliers for goods and services (875,447) (1,033,017) - -
Cash paid to employees for services (4,942,167) (1,554,026) (2,872) -
Net Cash Provided by (Used in) Operating Activities (640,638) (220,595) (2,872) 273,300
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (666,892) - - -
Cash transfers in 113,000 - 2,871 -
Repayment made to other funds - - (560) -
Net Cash Provided by (Used in)
Non-Capital Financing Activities (553,892) - 2,311 -
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (2,507) - - (439,762)
Net Cash Provided (Used) by
Capital and Related Financing Activities (2,507) - - (439,762)
Cash Flows from Investing Activities:
Repayment received on loans 2,180 447 - -
Interest received (71) 6,652 - 551
Net Cash Provided by (Used in)
Investing Activities 2,109 7,099 - 551
Net Increase (Decrease) in Cash
and Cash Equivalents (1,194,928) (213,496) (561) (165,911)
Cash and Cash Equivalents at Beginning of Year 1,435,358 2,048,730 561 173,994
Cash and Cash Equivalents at End of Year 240,430$ 1,835,234$ -$ 8,083$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)551,776$ (537,166)$ (6,382)$ 125,944$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 103,615 - 3,510 147,356
(Increase) decrease in accounts receivable (1,149,055) (3,781) - -
(Increase) decrease in prepaid expense 2,118 126 - -
Increase (decrease) in accounts payable (156,286) 91,773 (561) -
Increase (decrease) in accrued liabilities 16,645 260 561 -
Increase (decrease) in claims and judgments - 231,230 - -
Increase (decrease) in compensated absences (9,451) (3,037) - -
Total Adjustments (1,192,414) 316,571 3,510 147,356
Net Cash Provided by (Used in)
Operating Activities (640,638)$ (220,595)$ (2,872)$ 273,300$
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, 2014
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 Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Repayment received on 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 claims and judgments
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided by (Used in)
Operating Activities
Totals
1,274,986$ 9,091,710$
(163,690) (2,072,154)
(1,235,158) (7,734,223)
(123,862) (714,667)
- (666,892)
- 115,871
- (560)
- (551,581)
- (442,269)
- (442,269)
- 2,627
- 7,132
- 9,759
(123,862) (1,698,758)
340,023 3,998,666
216,161$ 2,299,908$
(32,276)$ 101,896$
- 254,481
160 (1,152,676)
32,279 34,523
(23,188) (88,262)
1,078 18,544
- 231,230
(101,915) (114,403)
(91,586) (816,563)
(123,862)$ (714,667)$
Governmental Activities -
Internal Service Funds
IT Services
115
CITY OF AZUSA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2014
Balance Balance
7/1/2013 Additions Deductions 6/30/2014
Deposit Trust
Assets:
Pooled cash and investments 7,273,064$ 5,589,187$ 8,803,100$ 4,059,151$
Receivables:
Accounts 762 105,355 762 105,355
Taxes 132,878 106,454 132,876 106,456
Total Assets 7,406,704$ 5,800,996$ 8,936,738$ 4,270,962$
Liabilities:
Accounts payable 7,363,959$ 5,981,818$ 9,121,807$ 4,223,970$
Accrued liabilities 4,947 24,683 16,935 12,695
Deposits payable 25,358 14,307 21,763 17,902
Due to other governments 12,440 5,255 1,300 16,395
Total Liabilities 7,406,704 $ 6,026,063 $ 9,161,805 $ 4,270,962 $
116
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
WATER - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Water
Operating Revenues:
Residential sales 10,324,448$
Commercial sales 3,822,126
Industrial sales 2,486,936
Other sales 1,223,852
Fees 121,832
Other revenue 3,919,092
Total Operating Revenues 21,898,286
Operating Expenses:
Production 4,578,738
Transmission and distribution 2,812,208
Customer accounting and sales 4,057,777
Uncollectible accounts 51,169
Administrative and general 243,366
Depreciation 3,706,738
Total Operating Expenses 15,449,996
Operating Income (Loss)6,448,290
Nonoperating Revenues (Expenses):
Interest revenue 127,126
Interest expense (2,880,043)
Franchise and in-lieu-tax (373,842)
Total Nonoperating Revenues (Expenses)(3,126,759)
Net Income (Loss) Before Transfers 3,321,531
Transfers out (115,000)
Net Income 3,206,531
Net Assets:
Beginning of Fiscal Year 54,812,397
Restatements (322,422)
Beginning of Fiscal Year, as restated 54,489,975
End of Fiscal Year 57,696,506$
117
CITY OF AZUSA
SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
LIGHT - ENTERPRISE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Light
Operating Revenues:
Sale/electricity - residential 11,970,815$
Sale/electricity - commercial and industrial 22,893,681
Sale/electricity - other 1,595,780
Sale/electricity - resale 8,471,903
Other revenue 315,632
Total Operating Revenues 45,247,811
Operating Expenses:
Purchase power 29,702,500
Transmission/dispatching 3,331,804
Operation and maintenance 2,909,597
Uncollectible accounts 65,832
Administration general expenditures 3,967,633
Depreciation 1,259,051
Total Operating Expenses 41,236,417
Operating Income 4,011,394
Nonoperating Revenues (Expenses):
Interest income 174,540
Interest expense (291,429)
Franchise and in-lieu-tax (3,676,826)
Total Nonoperating Revenues (Expenses)(3,793,715)
Net Income Before Transfers 217,679
Transfers Out (96,683)
Net Income (Loss) Before
Extraordinary Loss 120,996
Extraordinary Loss -
Net Income 120,996
Net Assets:
Beginning of Fiscal Year 44,890,500
Restatements 134,247
Beginning of Fiscal Year, as restated 45,024,747
End of Fiscal Year 45,145,743$
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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities:
Invest in capital assets,(6,479,067)$ 21,364,755$ 20,192,108$ 18,385,294$ 19,090,231$ 19,372,237$ 19,297,862$ 28,862,696$ 29,086,566$ 29,959,431$
net of related debt
Restricted 13,747,240 15,245,722 21,624,059 38,694,105 60,470,894 55,734,821 35,312,033 5,306,039 8,800,537 9,222,166
Unrestricted 18,382,918 (11,464,340) (18,347,943) (31,815,388) (58,874,825) (67,047,309) (50,982,746) 23,447,281 18,107,479 (9,785,854)
Total governmental activities net position 25,651,091$ 25,146,137$ 23,468,224$ 25,264,011$ 20,686,300$ 8,059,749$ 3,627,149$ 57,616,016$ 55,994,582$ 29,395,743$
Business-type activities:
Invest in capital assets,51,528,964$ 53,207,811$ 57,312,869$ 57,372,662$ 57,578,956$ 58,696,499$ 35,160,311$ 60,564,169$ 55,086,846$ 58,465,869$
net of related debt
Restricted 5,622,733 5,426,232 5,228,056 5,045,495 5,049,234 5,069,361 3,192,561 10,845,193 11,554,302 14,902,178
Unrestricted 58,567,909 64,855,723 69,437,708 67,473,534 64,014,418 61,221,682 85,047,584 53,464,644 55,694,676 41,477,469
Total business-type activities net position 115,719,606$ 123,489,766$ 131,978,633$ 129,891,691$ 126,642,608$ 124,987,542$ 123,400,456$ 124,874,006$ 122,335,824$ 114,845,516$
Primary government:
Invest in capital assets,45,049,897$ 74,572,566$ 77,504,977$ 75,757,956$ 76,669,187$ 78,068,736$ 54,458,173$ 89,426,865$ 84,173,412$ 88,425,300$
net of related debt
Restricted 19,369,973 20,671,954 26,852,115 43,741,600 65,520,128 60,804,182 38,504,594 16,151,232 20,354,839 24,124,344
Unrestricted 76,950,827 53,391,383 51,089,765 35,656,146 5,139,593 (5,825,627) 34,064,838 76,911,925 73,802,155 31,691,615
Total primary government net position 141,370,697$ 148,635,903$ 155,446,857$ 155,155,702$ 147,328,908$ 133,047,291$ 127,027,605$ 182,490,022$ 178,330,406$ 144,241,259$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 1 - Net Position by Component
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
12
1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Program Revenue:
Governmental activities:
Charges for services
General government 2,179,493$ 2,923,478$ 3,553,435$ 3,930,106$ 3,418,393$ 3,760,159$ 3,855,810$ 3,090,304$ 2,304,290$ 3,919,876$
Public Safety 661,246 482,386 620,542 755,186 681,943 871,900 713,846 721,032 705,140 829,054
Community development 1,259,160 1,370,152 1,596,453 1,697,467 1,358,872 1,659,057 1,915,741 2,615,631 2,831,860 3,296,987
Parks and recreation 479,689 651,025 625,955 685,468 1,127,077 1,179,080 997,277 1,046,584 1,090,771 1,181,561
Public Works 350,006 217,389 168,218 168,657 203,280 368,275 364,910 838,958 476,506 525,343
Operating grants and contributions 2,802,814 2,701,410 3,054,171 2,731,195 5,307,696 3,261,472 3,651,491 3,267,287 2,121,638 3,836,479
Capital grants and contributions 4,632,500 820,744 497,905 468,279 286,875 654,467 109,226 137,102 2,988,760 442,727
Total governmental activities
program revenues 12,364,908 9,166,584 10,116,679 10,436,358 12,384,136 11,754,410 11,608,301 11,716,898 12,518,965 14,032,027
Business-type activities:
Charges for services
Water 16,439,341 14,925,757 17,254,963 16,501,434 14,805,241 16,144,130 17,779,417 20,062,118 21,604,435 21,762,242
Light 36,101,801 38,050,462 34,932,840 35,998,389 34,496,805 35,192,941 39,189,980 40,962,648 42,377,694 45,001,748
Sewer/Wastewater 1,281,085 1,361,125 1,398,925 1,470,452 1,508,325 1,557,758 1,615,840 2,223,876 2,480,008 2,566,676
Refuse contract 2,509,096 2,587,410 2,812,595 2,996,275 2,968,742 2,933,390 3,062,700 2,976,946 2,954,842 3,058,956
Operating grants and contributions - - - - - 84
Total business-type activities
program revenues 56,331,323 56,924,754 56,399,323 56,966,550 53,779,113 55,828,303 61,647,937 66,225,588 69,416,979 72,389,622
Total primary government
program revenues 68,696,231$ 66,091,338$ 66,516,002$ 67,402,908$ 66,163,249$ 67,582,713$ 73,256,238$ 77,942,486$ 81,935,944$ 86,421,649$
Expenses:
Governmental activities:
General government 12,363,638$ 12,430,022$ 9,966,734$ 11,582,357$ 15,047,013$ 16,368,337$ 12,198,991$ 10,537,722$ 7,168,707$ 8,843,327$
Public safety 15,271,689 15,442,417 17,101,215 18,772,865 20,459,265 19,458,795 20,187,914 20,449,077 20,077,868 21,284,020
Community development 2,089,532 2,951,307 10,467,848 4,178,449 5,690,458 4,041,516 3,472,237 3,272,401 3,053,950 2,593,720
Parks and recreation 2,896,476 3,192,373 3,412,918 3,737,791 4,083,565 3,950,786 4,184,626 4,146,245 3,453,469 3,808,038
Public works 3,015,537 2,902,189 3,418,493 5,494,887 4,577,435 4,688,537 5,539,866 8,818,083 4,173,502 5,412,524
Interest on long-term debt 3,254,753 2,756,978 3,437,231 4,757,068 6,224,638 7,274,723 7,380,598 2,244,315 471,835 1,330,555
Total governmental activities
expenses 38,891,625 39,675,286 47,804,439 48,523,417 56,082,374 55,782,694 52,964,232 49,467,843 38,399,331 43,272,184
Business-type activities:
Water 11,501,923 12,192,788 15,681,384 18,473,689 17,225,088 19,114,843 19,680,719 19,364,355 19,199,120 18,345,227
Electric 34,280,527 36,578,602 34,713,270 38,827,637 36,939,301 39,803,690 40,083,680 39,115,161 44,040,193 45,011,550
Sewer/Wastewater 1,075,063 1,267,327 1,604,557 1,653,043 1,995,785 1,986,142 1,982,241 2,083,756 4,828,680 2,434,295
Refuse contract 2,526,134 2,642,780 2,918,732 3,247,734 3,028,270 2,924,303 2,962,395 2,851,882 2,835,041 2,938,255
Total business-type activities
expenses 49,383,647 52,681,497 54,917,943 62,202,103 59,188,444 63,828,978 64,709,035 63,415,154 70,903,034 68,729,327
Total primary government
program expenses 88,275,272 92,356,783 102,722,382 110,725,520 115,270,818 119,611,672 117,673,267 112,882,997 109,302,365 112,001,511
Net revenues (expenses):
Governmental activities (26,526,717) (30,508,702) (37,687,760) (38,087,059) (41,491,520) (44,028,284) (41,355,931) (37,750,945) (25,880,366) (29,240,157)
Business-type activities 6,947,676 4,243,257 1,481,380 (5,235,553) (5,409,331) (8,000,675) (3,061,098) 2,810,434 (1,486,055) 3,660,295
Total net revenues (expenses)(19,579,041) (26,265,445) (36,206,380) (43,322,612) (46,900,851) (52,028,959) (44,417,029) (34,940,511) (27,366,421) (25,579,862)
Fiscal Year
CITY OF AZUSA
Table 2 - Change in Net Position
Last Ten Fiscal Years (accrual basis)
12
2
(Continued)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes, general purpose 8,609,486$ 9,737,041$ 11,044,335$ 10,372,529$ 13,518,253$ 10,032,979$ 12,108,155$ 9,856,354$ 8,312,351$ 8,023,547$
Transient occupancy taxes 259,384 242,581 234,427 243,261 226,268 200,840 192,659 210,923 224,359 223,675
Sales tax 5,902,641 5,452,652 6,025,756 6,328,962 6,202,335 4,716,305 5,678,177 6,234,614 6,904,400 7,183,809
Franchise taxes 5,170,846 5,275,972 5,544,594 5,654,896 5,821,976 5,595,423 6,222,537 6,355,828 6,526,496 6,757,708
Business licenses taxes 1,538,113 1,537,442 1,637,775 1,640,425 1,755,831 1,829,503 1,822,102 1,865,195 1,983,634 1,922,139
Utility Users tax 2,919,740 3,086,589 3,289,210 3,302,442 3,260,191 3,059,121 3,160,788 3,250,469 3,305,545 3,441,178
Other taxes 4,429,649 4,504,355 4,798,699 1,397,618 1,131,885 1,102,339 2,678,727 1,272,967 1,963,904 1,763,038
Motor vehicle in lieu-unrestricted 3,857,205 95,470 326,101 232,989 157,012 137,557 143,401 420,126 25,224 20,876
Investment income 2,202,272 2,489,094 4,322,594 3,932,540 3,967,549 2,914,790 2,540,133 1,284,484 166,674 (423,898)
Other general revenues 37,884 131,917 373,063 2,702,680 707,536 441,956 854,945 (50,068) 279,447 759,132
- - - - - - - 59,933,832 - -
Transfers 2,303,545 664,206 700,000 4,392,846 2,249,387 1,386,380 1,326,374 1,082,262 1,309,808 1,535,996
Total governmental activities 37,230,765 33,217,319 38,296,554 40,201,188 38,998,223 31,417,193 36,727,998 91,716,986 31,001,842 31,207,200
Business-type activities:
Property taxes, general purpose 501,297 638,821 594,065 631,036 586,254 555,121 571,036 555,225 556,161 542,409
Investment income 1,895,324 2,619,090 4,236,645 4,954,367 2,579,973 6,201,289 1,626,291 257,653 115,380 300,515
Gain on sale of assets 299,469 183,829 - (38,373) 797 2,306 1,350 (1,966,003) (3,690) -
Transfers (2,303,545) (664,206) (700,000) (4,392,846) (2,249,387) (1,386,380) (1,326,374) (1,082,262) (1,309,808) (1,535,996)
Miscellaneous 895,727 273,296 2,676,882 1,841,306 1,230,835 1,336,168 358,891 884,535 359,573 399,293
Total business-type activities 1,288,272 3,050,830 6,807,592 2,995,490 2,148,472 6,708,504 1,231,194 (1,350,852) (282,384) (293,779)
Total general revenues 38,519,037 36,268,149 45,104,146 43,196,678 41,146,695 38,125,697 37,959,192 90,366,134 30,719,458 30,913,421
Changes in net position:
Governmental activities 10,704,048 2,708,617 608,794 2,114,129 (2,493,297) (12,611,091) (4,627,933) 53,966,041 5,121,476 1,967,043
Business-type activities 8,235,948 7,294,087 8,288,972 (2,240,063) (3,260,859) (1,292,171) (1,829,904) 1,459,582 (1,768,439) 3,366,516
Total primary government 18,939,996$ 10,002,704$ 8,897,766$ (125,934)$ (5,754,156)$ (13,903,262)$ (6,457,837)$ 55,425,623$ 3,353,037$ 5,333,559$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City of Azusa Administrative Services Finance Department
Fiscal Year
CITY OF AZUSA
Table 2 - Change in Net Position
Last Ten Fiscal Years (accrual basis)
Extraordinary gain/(loss on dissolution of
redevelopment agency
12
3
Table 3 - Fund Balances of Governmental Funds
2005 2006 2007 2008 2009 2010
General fund:
Reserved 175,890$ 150,700$ 142,136$ 196,095$ 500,389$ 5,827,294$
Unreserved 10,235,771 11,644,387 14,225,783 13,753,667 11,914,867 3,777,753
Total general fund 10,411,661$ 11,795,087$ 14,367,919$ 13,949,762$ 12,415,256$ 9,605,047$
All other governmental funds:
Reserved 4,445,816$ 3,236,097$ 17,873,011$ 23,069,640$ 43,489,276$ 47,472,564$
Unreserved, reported in:
Special revenue funds 13,629,201 13,120,059 13,671,472 15,616,841 21,491,624 13,022,299
Capital projects funds 2,705,239 3,010,074 2,487,655 1,904,457 1,320,550 1,045,279
Debt service funds 502,039 502,223 493,188 502,244 482,915 482,548
Redevelopment agency (4,067,346) (6,084,383) (30,748,209) (23,307,890) (36,129,562) (42,709,359)
Unassigned
Total all other governmental funds:17,214,949$ 13,784,070$ 3,777,117$ 17,785,292$ 30,654,803$ 19,313,331$
General fund:2011 2012 2013 2014
Nonspendable 21,615,263$ 20,951,468$ 20,993,673$ 20,927,944$
Unassigned (5,311,304) (5,817,312) (4,690,928) (509,996)
Total general fund:16,303,959$ 15,134,156$ 16,302,745$ 20,417,948$
All other governmental funds:
Nonspendable 14,892,551$ 8,038$ 23,729$ 11,363$
Restricted 23,297,599 11,062,074 9,005,070 9,222,166
Unassigned (32,625,038) (187,467) (376,870) (125,576)
Total all other governmental funds:5,565,112$ 10,882,645$ 8,651,929$ 9,107,953$
GASB Statement No. 54 - Fund Balance Reporting and Government Fund Type Definition, was implemented in fiscal year 2010-2011.
Source: City of Azusa Administrative Services Finance Department
CITY OF AZUSA
Last Ten Fiscal Years (modified accrual basis)
Fiscal Year
Fiscal Year
12
4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues:
Taxes 29,394,950$ 26,387,805$ 28,984,072$ 29,190,305$ 31,265,067$ 27,033,859$ 32,206,954$ 29,353,626$ 29,180,382$ 29,266,387$
Assessments 1,562,690 2,166,435 2,638,293 2,661,618 2,930,897 3,027,016 3,098,219 2,201,117 1,605,028 2,216,830
Licenses and permits 361,910 433,673 481,994 532,775 381,993 472,389 610,298 1,270,221 1,369,901 1,586,117
Intergovernmental 2,852,725 3,617,152 3,609,169 3,387,074 5,960,103 4,064,951 3,829,513 3,482,499 2,856,210 4,469,748
Charges for services 2,316,927 2,484,513 2,565,974 3,008,524 2,734,773 3,185,660 3,059,369 3,399,276 3,288,109 4,396,994
Developer participation 4,632,500 - - - - - 1,297,580 - - -
Investment income 1,173,207 1,294,508 3,205,561 2,765,219 1,859,424 1,335,922 994,621 872,118 157,022 131,515
Fines and forfeitures 726,726 556,776 815,558 897,816 967,012 1,104,715 119,111 978,829 989,616 1,343,318
Contributions 298,431 154,636 106,592 99,211 106,450 113,363 157,930 109,255 64,461 84,870
Miscellaneous 50,453 166,677 422,313 3,001,938 713,547 573,008 - 1,492,038 384,382 870,199
Total Revenues 43,370,519 37,262,175 42,829,526 45,544,480 46,919,266 40,910,883 45,373,595 43,158,979 39,895,111 44,365,978
Expenditures:
Current:
General government 7,767,243 9,701,352 9,070,967 11,136,420 12,490,585 14,248,881 10,623,623 10,070,713 7,168,707 6,762,467
Public safety 15,128,730 15,111,854 16,813,699 18,534,126 26,948,793 19,144,169 19,824,369 20,379,672 20,077,868 20,877,090
Community development 2,077,048 2,948,683 10,455,704 4,166,223 5,191,932 3,271,672 3,423,224 3,223,201 3,053,950 2,564,915
Parks and recreation 2,646,317 2,902,603 3,054,964 3,388,218 3,607,838 3,519,626 3,729,125 3,770,465 3,453,469 3,561,491
Public Works 2,862,628 2,772,437 2,964,749 3,666,010 3,847,822 3,963,820 4,204,180 7,358,644 4,173,502 4,245,273
Capital Outlay 1,874,653 2,982,756 3,333,934 4,847,786 3,493,096 2,804,345 2,762,698 1,554,151 2,348,624 2,204,482
Debt service:
Principal retirement 1,340,000 1,085,000 1,100,000 915,000 1,355,000 2,020,000 2,494,212 2,615,717 1,479,367 1,706,996
Interest and fiscal charges 3,633,844 2,624,113 3,319,471 4,392,178 5,298,820 7,115,425 7,295,680 2,537,665 471,835 401,265
Pass-through agreement payments 3,389,278 - - - - - - - - -
- - - 718,237 878,581 - - - - -
Total Expenditures 40,719,741 40,128,798 50,113,488 51,764,198 63,112,467 56,087,938 54,357,111 51,510,228 42,227,322 42,323,979
Excess (Deficiency) of revenues
over (under) expenditures 2,650,778 (2,866,623) (7,283,962) (6,219,718) (16,193,201) (15,177,055) (8,983,516) (8,351,249) (2,332,211) 2,041,999
Other Financing Sources (Uses):
Transfer in 19,383,272 12,513,835 8,891,433 51,422,808 25,925,067 10,710,775 24,569,629 5,900,632 6,003,156 6,310,394
Transfer out (17,155,250) (11,849,629) (9,208,303) (47,179,912) (23,675,680) (9,362,595) (23,841,239) (4,818,370) (4,705,827) (4,777,269)
Notes and loans issued 9,186,357 232,038 166,711 20,820,182 25,879,924 391,867 986,314 1,305,892 - -
Other financing sources - - - (4,935,000) (323,410) - - - - -
Total Other Financing Sources
(Uses)11,414,379 896,244 (150,159) 20,128,078 27,805,901 1,740,047 1,714,704 2,388,154 1,297,329 1,533,125
Extraordinary gain/(loss) on dissolution
of redevelopment agency - - - - - - - 10,087,999 - -
Net change in fund balances 14,065,157$ (1,970,379)$ (7,434,121)$ 13,908,360$ 11,612,700$ (13,437,008)$ (7,268,812)$ 4,124,904$ (1,034,882)$ 3,575,124$
Debt service as a percentage of
noncapital expenditures 21.5%10.0%9.4%11.3%11.2%17.1%19.0%10.3%4.9%5.3%
Source: City of Azusa Administrative Services Finance Department
Bond issuance costs
CITY OF AZUSA
Table 4 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
Fiscal Year
12
5
Fiscal Year Residential
Commercial/
Industrial Other Total
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 (1)10,605,804 21,041,098 1,238,881 32,885,783
2012 (1) 11,769,253 22,392,573 1,272,683 35,434,509
2013 12,191,958 22,259,074 1,422,284 35,873,316
2014 11,970,815 22,893,681 1,595,780 36,460,276
(1) Restated revenues to reflect actuals from Supplemental Statement of Revenues, Expenses and Changes in Net
Assets for Electric-Enterprise Fund. Prior numbers were from the Customer Information Billing System, which did
not include year-end accruals.
Source: City of Azusa Light & Water Department
City of Azusa
Table 5 - Light Department
Electricity Sold by Type of Customer
Last Ten Fiscal Years
Type of Customer
126
Fiscal Monthly Rate per Rate per
Year Ended Base 0-250 >250
June 30 Rate kWh kWh
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 0.1160 0.1487
2011 3.81 0.1160 0.1487
2012 3.81 0.1160 0.1487
2013 3.81 0.1160 0.1487
2014 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 above normal
demand.
127
2009 2010 2011 2012 2013 2014
Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of
Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light
Light Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 1,686,278$ 5.484%1,907,792$ 6.243%2,104,018$ 6.398%1,741,024$ 4.913%1,780,989$ 4.965%1,802,237$ 4.943%
Archcom Technology - 0.000%- 0.000%- 0.000%223,383 0.630%- 0.000%- 0.000%
Artisan Screen Process 244,353 0.795%289,808 0.948%319,455 0.971%301,378 0.851%- 0.000%546,126 1.498%
Azusa USD 851,020 2.768%848,494 2.777%954,045 2.901%896,318 2.530%856,373 2.387%883,569 2.423%
Azusa Western 259,979 0.846%187,312 0.613%241,542 0.734%232,823 0.657%- 0.000%- 0.000%
Buena Vista Food Prod - 0.000%- 0.000%312,836 0.951%329,687 0.930%333,594 0.930%357,445 0.980%
California Amforge Corp 300,181 0.976%246,842 0.808%213,367 0.649%295,442 0.834%651,233 1.815%- 0.000%
City of Azusa 1,050,852 3.418%1,099,736 3.599%1,112,047 3.382%1,045,326 2.950%1,206,165 3.362%1,347,507 3.696%
City of Glendora 514,909 1.675%630,202 2.062%575,089 1.749%72,098 0.203%679,753 1.895%613,336 1.682%
Costco Wholesale Corp.617,698 2.009%605,910 1.983%612,630 1.863%613,230 1.731%642,560 1.791%646,887 1.774%
Criterion Catalyst & Tech LP 823,604 2.679%876,881 2.869%181,832 0.553%- 0.000%- 0.000%- 0.000%
Hansen's Juices (Naked Juice)- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Morris Partnership 234,419 0.762%247,137 0.809%156,898 0.477%226,681 0.640%- 0.000%- 0.000%
Northrop Grumman Sys.507,168 1.649%485,763 1.590%504,436 1.534%468,774 1.323%366,623 1.022%482,780 1.324%
Rainbird Corp./CA Div.876,034 2.849%913,206 2.988%933,722 2.839%193,342 0.546%- 0.000%- 0.000%
S & S Foods LLC 1,310,363 4.262%1,377,385 4.507%1,444,281 4.392%1,386,170 3.912%1,584,047 4.416%1,679,420 4.606%
Stater Bros Market - 0.000%- 0.000%- 0.000%145,484 0.411%- 0.000%- 0.000%
Target Corporation - 0.000%- 0.000%- 0.000%301,707 0.851%- 0.000%- 0.000%
T H Molding Corporation - 0.000%- 0.000%- 0.000%401,075 1.132%- 0.000%- 0.000%
Thermal Remediation Solutions - 0.000%187,845 0.615%195,798 0.595%154,795 0.437%- 0.000%- 0.000%
Verizon Wireless Inc 528,635 1.719%543,655 1.779%601,882 1.830%894,493 2.524%1,064,241 2.967%1,205,326 3.306%
Total 9,805,493$ 31.891%10,447,967$ 34.189%10,463,878$ 31.819%9,923,230$ 28.004%9,165,578$ 25.550%9,564,633$ 26.233%
City of Azusa
Table 7 - 10 Largest Electrical Customers
Last Six Fiscal Years
12
8
Last Ten Fiscal Years
Fiscal Year Residential Commercial Industrial Other (2)Total
2005 8,455,712$ 4,022,604$ 1,354,218$ 1,115,954$ 14,948,488$
2006 8,084,959 3,147,304 2,274,028 831,254 14,337,545
2007 9,145,318 3,260,316 2,697,339 900,043 16,003,016
2008 9,218,162 3,155,962 2,360,731 811,672 15,546,527
2009 7,740,102 2,770,336 2,551,733 746,171 13,808,342
2010 8,932,609 3,082,179 2,630,635 921,332 15,566,755
2011 (1)9,640,301 3,461,006 2,532,726 1,018,571 16,652,604
2012 (1) 9,883,807 3,553,448 2,555,016 1,082,702 17,074,973
2013 10,434,389 3,815,664 2,621,551 1,267,068 18,138,672
2014 10,324,448 3,822,126 2,486,936 1,223,852 17,857,362
(1) Restated revenues to reflect actuals from Supplemental Statement of Revenues, Expenses and Changes in Net
Assets for Water-Enterprise Fund. Prior numbers were from the Customer Information Billing System, which did not
include year-end accruals.
(2) Reclassed revenues from "Other revenue" line item on the Supplemental Statement of Revenues, Expenses and
Changes in Net Assets for Water-Enterprise Fund.
Source: City of Azusa Light & Water Department
City of Azusa
Table 8 - Water Sold by Type of Customer
Type of Customer
129
Fiscal Monthly Tier 1 Tier 2 Tier 3
Year Ended Base Rate per Rate per Rate per
Activity Rate CCF CCF CCF
0-17 CCF >17 CCF
2005 11.22$ 0.798$ 1.260$
07/05-10/05 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
0-12 CCF 13-36 CCF >36 CCF
07/13-04/14 17.03 1.007 1.953
05/14-06/14 17.03 1.007 2.129 3.031
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.
(3) A Phase III Drought was declared effective May 1, 2014, where a third tier was
implemented.
130
2009 2010 2011 2012 2013 2014
Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of
Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water
Water Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 119,322$ 0.913%131,298$ 0.897%212,880$ 1.282%126,737$ 0.737%130,761$ 0.775%138,644$ 11.328%
Azusa Carefree Association 44,259 0.339%43,429 0.297%52,285 0.315%65,984 0.384%- 0.000%- 0.000%
Azusa Greens Country Club 115,081 0.881%119,771 0.818%114,596 0.690%131,809 0.766%163,455 0.969%157,909 12.903%
Azusa Unified School District 293,496 2.247%263,852 1.802%304,265 1.833%285,883 1.662%390,372 2.314%380,303 31.074%
Azusa Western 419,714 3.213%328,989 2.246%244,528 1.473%259,555 1.509%262,656 1.557%251,656 20.563%
Calmat Site #1055-A - 0.000%- 0.000%54,439 0.328%36,368 0.211%- 0.000%- 0.000%
Citrus College 44,088 0.338%43,123 0.294%45,507 0.274%47,347 0.275%49,133 0.291%- 0.000%
City of Azusa 86,393 0.661%94,955 0.648%141,459 0.852%137,730 0.801%150,954 0.895%157,052 12.833%
Covina Valley USD 84,487 0.647%74,237 0.507%42,644 0.257%110,587 0.643%167,684 0.994%142,356 11.632%
Hector Perales - 0.000%280,785 1.917%- 0.000%- 0.000%- 0.000%- 0.000%
Lovin Oven 43,537 0.333%- 0.000%47,099 0.284%52,250 0.304%- 0.000%- 0.000%
Mike Nijjar-060 - 0.000%71,217 0.486%- 0.000%79,676.00 0.463%- 0.000%- 0.000%
Miller Brewery 1,371,278 10.498%1,280,978 8.747%1,149,331 6.924%1,126,387 6.549%1,155,227 6.847%1,068,819 87.332%
Mountain Cove - 0.000%72,707 0.496%- 0.000%68,138 0.396%- 0.000%- 0.000%
NCI 48,432 0.371%56,389 0.385%64,368 0.388%68,253 0.397%- 0.000%- 0.000%
Ready Pac 371,827 2.847%431,649 2.947%499,358 3.008%533,105 3.099%556,493 3.298%546,810 44.679%
S&S Foods LLC 69,207 0.530%83,896 0.573%113,343 0.683%122,666 0.713%132,658 0.786%129,093 10.548%
Southern California Edison - 0.000%- 0.000%- 0.000%34,983 0.203%- 0.000%- 0.000%
Villa Azusa Association - 0.000%- 0.000%- 0.000%59,898 0.348%- 0.000%- 0.000%
Vulcan Materials - 0.000%- 0.000%- 0.000%- 0.000%- 0.000%51,760 4.229%
Total 3,111,121$ 23.818%3,377,276$ 23.060%3,086,102$ 18.591%3,347,356$ 19.462%3,159,393$ 18.726%3,024,402$ 247.122%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
City of Azusa
Table 10 - Largest Water Customers
Last Six Fiscal Years
13
1
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
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%
2014 2,239,991,812 284,125,347 904,950,465 3,429,067,624 0.13976 3,429,067,624 100.0%
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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City Direct Rates:
General City 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$
Redevelopment Agency 1.05560 1.04953 0.10421 1.02976 1.01800 1.01800 1.01800 1.01800 (1)(1)
Total Direct Rate 0.35734 0.34461 0.33843 0.31890 0.32698 0.33638 0.34228 0.34311 0.33678 0.13976
Overlapping Rates:
Azusa Unified School District 0.08334 0.07256 0.07896 0.06042 0.03603 0.03909 0.05695 0.05628 0.04641 0.03765
Citrus Community College District 0.02585 0.01763 0.00356 0.01611 0.02441 0.02397 0.02516 0.02447 0.02590 0.02226
County Detention Fac 1987 Debt 0.00092 0.00080 0.00066 - - - - - - -
Covina Valley Unified School District 0.03745 0.03793 0.08419 0.07870 0.07863 0.08592 0.09003 0.08999 0.09500 0.11472
Duarte Unified School District 0.06409 0.06218 0.06633 0.06063 0.06739 0.07256 0.07542 0.11237 0.12657 0.12283
Los Angeles County Flood Control 0.00025 0.00005 0.00005 - - - - - - -
Metropolitan Water District 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 0.00350 0.00350
Mt. San Antonio College 0.01473 0.02122 0.02530 0.01750 0.02333 0.02571 0.02636 0.02642 0.02896 0.02023
SGV MWD State Water Bond 0.03310 0.03310 0.03310 0.03310 0.02910 0.02910 0.02910 0.02910 0.02910 0.02910
Total Tax Rate 0.41474 0.39988 0.44606 0.42017 0.41240 0.42986 0.45593 0.49154 0.50465 0.49950
(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.
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
Source: L.A. County Assessor Tax Rate Table Area 02045
This 1.00%is shared by all taxing agencies for which the subject property resides
within.In addition to the 1.00% fixed amount, property owners are charged taxes
as a percentage of assessed property values for the payment of any voter
General fund tax rates are representative and based upon the direct and overlapping
rates for the largest General Fund tax rate area by net taxable value.
Total Direct Rate is the weighted average of all individual direct rates applied by the
City. The Direct Rate percentages presented in the columns above is not the sum of
the General City Rate and the Redevelopment Agency Rate (RDA).
RDA rate is based on the largest RDA tax rate area and includes only rates from
indebtedness adopted prior to 1989 per California State statute.RDA direct and
overlapping rates are applied only to the incremental property values.
CITY OF AZUSA
Table 12 - Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
13
3
Table 13 - Principal Property Tax Payers (Top Ten)
Current Year and Nine Years Ago
2014 2005
Percentage of Percentage of
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation 111,859,628$ 3.26%1 135,654,680$ 5.88%
Rainbird Corp/CA Div.42,993,962 1.25%2 35,029,887 1.52%
Azusa Pacific University 32,849,106 0.96%3 - 0.00%
PPF Industrial 823 8th Street 32,215,460 0.94%4 27,575,000 1.20%
Citrus Crossing Properties Fee 22,551,415 0.66%5 - 0.00%
Rosedale Land Partners II LLC 21,828,057 0.64%6 - 0.00%
S & S Foods LLC 20,018,173 0.58%7 - 0.00%
Costco Wholesale Corporation 19,175,634 0.56%8 17,253,265 0.75%
Sam Menlo Trust 18,835,448 0.55%9 - 0.00%
VPM Soldano Senior Village LP 17,217,740 0.50%10 - 0.00%
Coastal Pacific Glen LLC - 0.00%29,681,649 1.29%
Criterion Catalyst Company LP - 0.00%17,000,599 0.74%
Reichhold Inc - 0.00%14,767,682 0.64%
JAR Azusa Association LTD - 0.00%15,652,549 0.68%
MCS Edgewood Center LLC - 0.00%14,148,237 0.61%
Azusa Rock Inc - 0.00%13,046,498 0.57%
339,544,623$ 9.90%319,810,046$ 13.87%
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
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%
2014 3,743,370 3,632,433 97.0%74,318 3,706,751 99.0%
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
Governmental Activities Business-type Activities
Fiscal Year Certificate Tax Taxable Total Certificate Total Total Percentage of Percentage of
Ended of Allocation Pension Governmental of Revenue Business-type Primary Assessed Personal
June 30 Loans Participation Bonds (1)Funding Bonds (2)Activities Loans(7)Participation (3)Bonds (4)Activities Governmental Values Income
2005 9,045,317$ 4,525,000$ 25,366,416$ -$ 38,936,733$ 652,944$ 33,570,000$ -$ 34,222,944$ 73,159,677$ 3.17%9.54%
2006 9,002,355 4,325,000 24,824,506 - 38,151,861 - 32,355,000 - 32,355,000 70,506,861 2.73%8.64%
2007 8,899,066 4,120,000 24,271,206 - 37,290,272 - 31,110,000 54,850,000 85,960,000 123,250,272 4.06%14.49%
2008 8,879,247 3,910,000 39,546,698 - 52,335,945 - 29,825,000 54,850,000 84,675,000 137,010,945 4.25%15.89%
2009 8,974,172 3,695,000 57,056,201 7,215,000 76,940,373 - 28,500,000 54,850,000 83,350,000 160,290,373 4.52%19.00%
2010 9,366,038 3,480,000 55,814,889 6,735,000 75,395,927 - 27,125,000 54,570,000 81,695,000 157,090,927 4.57%18.02%
2011 9,685,015 3,255,000 54,768,014 6,180,000 73,888,029 - 25,690,000 54,275,000 79,965,000 153,853,029 4.75%18.00%
2012 10,005,461 3,025,000 - (6)5,555,000 18,585,461 5,630,000 3,070,000 68,500,000 77,200,000 95,785,461 2.99%10.85%
2013 10,403,644 2,785,000 - (6)4,855,000 18,043,644 5,405,000 2,540,000 68,180,000 76,125,000 94,168,644 2.90%11.12%
2014 10,700,656 2,540,000 - 4,075,000 17,315,656 5,080,000 1,985,000 67,380,000 74,445,000 91,760,656 2.68%(5)
(1)The Redevelopment Agency issued $9,051,416 of new TABS in 2005, $15,780,000 2007 Series A Merged Project Area TABS and $4,790,000 Series B Merged Project area TABS,$6,715,000 2008
Series A Merges Project Area TABS, and $11,580,000 2008 Housing Tax Allocation Bonds Series B.
(2)The City issued $7,215,000 of taxable pension funding bonds in 2008
(3)The Light Fund issued $11,995,000 of new Certificates of Participation in 2003; issued refunding revenue bonds of $5,820,000 in 2012.
(4)The Water Fund replaced its Revenue Bond with Certificates of Participation in December 2003; issued refunding revenue bonds of $8,715,000 in 2012;
(5)Information not available
(6)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.
(7)The Sewer Fund acquired an installment sale agreement loan of $5,630,000 in 2011 that includes the refunding of 1994 COPs.
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 15 - Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
13
6
Fiscal Year Certificates Tax Percentage Debt per
Ended of Allocation of Assessed City
June 30 Participation Bonds Total Values Capita
2005 4,525,000$ 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%58
2014 2,540,000 (1)2,540,000 0.07%(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 2,540,000$ 100 2,540,000$
Pension Bonds 4,075,000 100 4,075,000
Total Direct Debt 6,615,000
Metropolitan Water District 64,271,492$ 0.103 66,360$
Citrus CCD DS 2013 Refunding 12,670,000 15.449 1,957,359
Citrus CCD DS 2004 Series 2007B 32,965,000 15.449 5,092,687
Citrus CCD DS 2004 2009 Series C 48,607,553 15.449 7,509,270
Mount San Antonio Comm. College District 2001 Series A 2004B 2,150,000 0.025 533
Mount San Antonio Comm. College District 2001, 2006 Ser C 2,940,000 0.025 729
Mount San Antonio Comm. College District 2001, 2008 Ser D 22,378,676 0.025 5,550
Mount San Antonio Comm. College District 2008 Series 13A 205,586,691 0.025 50,984
Mount San Antonio Comm. College District 2008 Series 2013B 1,171,500 0.025 2,905
Mount San Antonio Comm. College District 2013 Ref Series A 74,910,000 0.025 18,577
Mount San Antonio Comm. College District 2013 Ref Series B 48,190,000 0.025 11,951
Azusa Unified School District 2002 Series 2007 42,313,175 63.947 27,058,032
Azusa Unified School District 2002 Series 2011 19,590,000 63.947 12,527,229
Covina Valley Unified School District 2001 Series B 16,666,755 0.236 39,415
Covina Valley Unified School District 2006 Series 2006 1,035,000 0.236 2,448
Covina Valley Unified School District 2006, 07 Series B 15,311,744 0.236 36,210
Covina Valley Unified School District 2001 Ref 2010 Series A 12,715,000 0.236 30,069
Covina Valley Unified School District 2012 Series A 30,000,000 0.236 70,946
Covina Valley Unified School District 2013 Ref Bonds 39,835,000 0.024 94,204
Duarte Unified School District 1998 Series B 4,273,730 0.355 15,170
Duarte Unified School District 1998 Series C 4,953,988 0.355 17,585
Duarte Unified School District 1998 Series D 3,714,534 0.355 13,185
Duarte Unified School District 1998 Series E 12,982,314 0.355 46,083
Duarte Unified School District Refunding 1998, 2010 Series A 2,300,000 0.355 8,164
Duarte Unified School District 2010 Series A 20,078,506 0.355 71,272
Duarte Unified School District 2010 Series B 8,000,000 0.355 28,397
Duarte Unified School District 2013 Ref Bonds 2,040,000 0.355 7,241
Total Overlapping Debt 54,782,555
Total Direct and Overlapping Debt 61,397,555$
2013/14 Assessed Valuation: $2,661,768,903 after deducting $767,298,721 Incremental Value.
Debt to Assess Valuation Ratios:Direct Debt 0.250%
Overlapping Debt 2.060%
Total Debt 2.310%
Source: HdL Coren & Cone
City of Azusa
Table 17 - Direct and Overlapping Debt
June 30, 2014
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of overlapping debt
applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
138
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assessed valuation 1,746,830,302$ 1,782,378,184$ 2,375,554,778$ 2,588,959,025$ 2,548,482,077$ 2,292,870,440$ 2,252,687,451$ 2,297,922,448$ 2,459,261,962$ 2,661,768,903$
Conversion percentage 25%25%25%25%25%25%25%25%25%25%
Adjusted assessed valuation 436,707,576 445,594,546 593,888,695 647,239,756 637,120,519 573,217,610 563,171,863 574,480,612 614,815,491 665,442,226
Debt limit percentage 15%15%15%15%15%15%15%15%15%15%
Legal debt limit 65,506,136 66,839,182 89,083,304 97,085,963 95,568,078 85,982,642 84,475,779 86,172,092 92,222,324 99,816,334
Amount of debt applicable to debt limit (1)- - - - - - - - - -
Legal debt margin 65,506,136$ 66,839,182$ 89,083,304$ 97,085,963$ 95,568,078$ 85,982,642$ 84,475,779$ 86,172,092$ 92,222,324$ 99,816,334$
Source: City of Azusa - Finance Department
City of Azusa
Table 18 - Legal Debt Margin Information
Last Ten Fiscal Years
(1) Total Bonded debt issued by the City, excluding certificates of participation, tax
allocation bonds, special assignment bonds, revenue bonds payable from enterprise
funds, and pledge mortgage revenues and revenue bonds issued by entities other
than the City of Azusa.
13
9
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues (2)Expenses (3)Debt Service Principal Interest Total Coverage
2005 17,289,116$ 9,822,392$ 7,466,724$ 840,000$ 806,809$ 1,646,809$ 4.53
2006 16,596,978 9,278,285 7,318,693 735,000 801,758 1,536,758 4.76
2007 21,229,600 11,935,540 9,294,060 750,000 794,258 1,544,258 6.02
2008 19,722,623 13,123,066 6,599,557 765,000 3,549,732 4,314,732 1.53
2009 16,273,690 11,945,339 4,328,351 790,000 3,444,146 4,234,146 1.02
2010 21,214,733 12,359,569 8,855,164 1,095,000 3,412,433 4,507,433 1.96
2011 18,326,599 12,413,196 5,913,403 1,135,000 3,370,921 4,505,921 1.31
2012 20,537,532 12,835,963 7,701,569 1,180,000 3,325,671 4,505,671 1.71
2013 21,761,836 12,206,073 9,555,763 320,000 2,819,064 3,139,064 3.04
2014 22,025,412 11,743,258 10,282,154 1,000,000 2,963,039 3,963,039 2.59
(1)Calculation of debt coverage is in accordance with covenants set for in 2012 Series A Refunding Revenue Bonds.
(2)Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(3)Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues (2)Expenses (3)Debt Service Principal Interest Total Coverage
2005 37,948,961$ 30,494,748$ 7,454,213$ 345,000$ 165,954$ 510,954$ 14.59
2006 39,514,991 32,070,850 7,444,141 400,000 101,658 501,658 14.84
2007 37,681,632 30,045,117 7,636,515 410,000 562,810 972,810 7.85
2008 39,123,270 34,104,940 5,018,330 425,000 527,038 952,038 5.27
2009 36,672,695 32,060,936 4,611,759 435,000 504,544 939,544 4.91
2010 37,562,799 34,960,983 2,601,816 455,000 481,021 936,021 2.78
2011 40,332,068 35,017,007 5,315,061 480,000 468,614 948,614 5.60
2012 41,587,035 34,151,821 7,435,214 505,000 443,151 948,151 7.84
2013 42,617,624 39,000,890 3,616,734 530,000 246,108 776,108 4.66
2014 45,422,351 39,977,366 5,444,985 555,000 300,680 855,680 6.36
(1)Calculation of debt coverage in accordance with covenants set for in 2003 Certificates of Participation Series C and 2012 Series B
Refunding Revenue Bonds.
(2)Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(3)Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
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 (1)
140
Last Ten Fiscal Years
Operating Debt Service Requirements
Fiscal Year and Non-Net Revenue
Ended Gross Operating Available for
June 30 Revenues Expenses (1)Debt Service Principal Interest Total Coverage
2005 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)
2014 2,577,662 2,202,296 375,366 325,000 179,595 504,595 0.74
(1)Excludes interest and depreciation expense
Source: City of Azusa Finance Department
REVENUE BONDS - SEWER FUND
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage
(Continued)
141
Debt Service Requirements
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Total Coverage
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
2014 5,097,292 1,295,000 2,925,110 4,220,110 1.21
(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 $9,022,800 of new Tax Allocation Bonds in 2005.
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage
Tax Allocation Bonds - Redevelopment Agency (Successor Agency)
Last Ten Fiscal Years
142
Per Capita
Calendar City County Personal Personal Unemployment
Year Population Population (1)Income Income Rate
2004 48,022 10,107,451 730,067,000$ 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%
2013 48,385 10,017,068 847,221,000 17,510 8.3%
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 Ten 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 7.28%1600 1 7.77%
Northrop Grumman 978 2 4.51%1400 2 6.80%
City of Azusa 378 3 1.74%530 4 2.57%
Costco Wholesale Corporation 325 4 1.50%290 7 1.41%
Dostalek Construction Company 300 5 1.38%(2)
S & S Foods LLC 250 6 1.15%200 9 0.97%
Buena Vista Food Products 165 7 0.76%(2)
Colorama Wholesale Nursery 152 8 0.70%(2)
Target Store 141 9 0.65%(2)
Hanson Distributing Company 135 10 0.62%(2)
Artisan Screen 120 11 0.55%80 0.39%
Ancra International LLC 106 12 0.49%(2)
Azusa Pacific University (2)900 3 4.37%
Morris National Candy 101 13 0.47%240 5 1.17%
Pacific Precision Metals 250 8 1.21%
Perkin Elmer Optoelectronics 300 5 1.46%
Total of Top Employers 4,731 5,790
Total Employees in City 21,700 (1)20,600 (1)
Sources:
Data from City of Azusa Business License Division unless noted.
(1)California Employment Development Department
(2)Data not available
2013-14 2004-05
144
by Function
Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General government 40.791 43.745 42.236 44.698 50.348 49.261 48.411 30.934 33.593 31.146
Public safety 93.406 91.978 93.800 96.530 99.035 98.945 97.395 88.750 97.570 91.750
Community development 17.225 13.502 14.927 15.441 15.985 16.376 16.196 14.197 14.651 15.533
Parks and recreation 58.250 55.354 56.169 48.211 51.650 55.306 56.557 48.023 45.407 49.317
Public works 25.845 20.800 21.884 23.132 31.115 31.115 31.115 30.058 30.265 27.181
Water 37.610 39.220 36.425 36.350 44.425 44.025 43.775 42.625 43.275 46.617
Electric 28.490 30.280 31.425 32.350 36.125 37.725 36.475 37.625 37.975 32.492
Sewer/Wastewater 4.080 6.250 6.000 6.000 10.000 10.250 10.250 10.230 9.570 7.540
Total 305.697 301.129 302.866 302.712 338.683 343.003 340.174 302.442 312.306 301.576
Source:City of Azusa Finance Department
Assigned Full-Time Equivalent (FTE) Totals
City of Azusa
Table 23 - Full-time and Part-time Employees
Last Ten Fiscal Years
Fiscal Year
14
5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Police:
Calls for service 49,797 51,353 52,000 56,166 56,610 54,896 54,734 57,210 57,637 54,363
Parking citations issued 4,053 4,136 4,691 4,833 9,881 9,801 8,188 6,515 7,680 6,846
Public Works:
Street resurfacing (lineal miles)15.3 12.8 15.0 13.3 14.3 2.5 6.0 4.2 4.3 5.3
Parks and recreation:
Number of recreation classes 110 84 84 84 196 310 56 73 101 211
Number of facility rentals 1,156 1,510 1,497 1,492 706 827 829 868 874 809
Water:
Number of service connections 19,580 23,126 (2)22,895 (2)22,868 (2)23,014 (2)23,036 (2)23,100 (2)23,104 (2)23,302 (2)23,597 (2)
Average daily consumption 29,435 25,067 27,319 23,296 22,832 21,517 20,230 20,819 22,179 21,974
(hundred cubic feet)
Light:
Number of service connections 15,530 15,358 15,531 15,650 15,403 15,276 (2)15,362 (2)15,567 (2)15,749 (2)15,955 (2)
Average daily consumption 727,437 707,965 700,167 691,070 693,469 672,920 654,050 648,020 677,871 685,699
(kWh)
Sewer:
Number of service connections 16,072 14,183 (2)14,344 (2)14,402 (2)14,073 (2)14,335 (2)14,071 (2)15,235 (2)15,374 (2)15,374 (2)
Refuse:
Number of residential customers 13,812 11,206 (2)11,296 (2)12,053 (2)11,127 (2)11,254 (2)11,123 (2)11,293 (2)11,652 (2)11,866 (2)
Average daily collection 157 158 109 114 122 184 177 178 179 180
(thousands of pounds)
(1)Information not available
(2)Restated number of service connections beginning in FY 2006 to number of billed accounts and accounted for customers
outside the City that are billed every 2 months.
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
CITY OF AZUSA
Table 24 - Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
14
6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Public Works:
Streets (lineal miles)170 170 170 170 170 171 170 174 176 177
Traffic signals 52 52 52 52 52 53 52 53 53 55
Parks and recreation:
Parks 10 10 10 13 13 13 13 15 16 17
Park acreage 55 58 58 60 61 61 61 64 64 77
Community centers 2 2 2 3 3 3 3 3 3 3
Water:
Water mains (miles)302 305 308 311 312 315 315 315 315 315
Number of fire hydrant 2,500 2,525 2,575 2,585 2,594 2,594 2,600 2,810 2,815 2,820
Maximum daily capacity 40,000 40,000 40,000 40,000 40,000 40,000 40,000 70,500 70,500 70,500
(hundred cubic feet)
Light:
Streetlights 65 64 65 65 65 65 65 65 65 65
Maximum daily consumption 171 153 169 169 169 169 162 162 162 162
(kWh)
Sewer:
Sanitary sewers (miles)61 61 61 61 61 61 61 80 80 80
Storm sewers (miles)15 15 15 15 15 15 15 15 16 16
Maximum daily treatment capacity 48 48 48 48 48 48 48 48 60 60
(cubic feet per second)
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
Fiscal Year
CITY OF AZUSA
Table 25 - Capital Asset Statistics by Function
Last Ten Fiscal Years
14
7
Susan Paragas General Overview
Director of Finance Letter of Transmittal
Management's Discussion and Analysis
Charts
Statistical Section
Richard Lam General Fund
Budget Analyst Footnotes
Naomi Narvaez
Senior Administrative Technician Statistical Section
Dave Nguyen General Overview
Senior Accountant Overall Coordination
Proprietary Funds
Non-Major Proprietary Funds
Capital Projects
Fixed Assets Accounting
Henry Quintero Non-Major Governmental Funds
Senior Accountant Internal Service Funds
Grants Funds (Single Audit)
Successor Agency
CITY OF AZUSA
Table 26 - Schedule of Credits
June 30, 2014
148