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HomeMy WebLinkAboutAzusa CAFR Final                         CITY OF AZUSA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2015                     This page intentionally left blank. CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 PREPARED BY FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................. i Organizational Chart .............................................................................................................................. vi 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 Position - 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, 2015 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in the Net Pension Liability and Related Ratios – Agent Multiple-Employer Miscellaneous Plans ..................................................................................... 86 Schedule of Contributions – Agent Multiple-Employer Miscellaneous Plans ....................................... 87 Schedule of Proportionate Share of the Net Pension Liability – Cost-Sharing Multiple-Employer Safety Plans ...................................................................................... 88 Schedule of Contributions – Cost-Sharing Multiple-Employer Safety Plans ........................................ 89 Schedule of Changes in the Net Pension Liability and Related Ratios – Retirement Enhancement Plans ........................................................................................................... 90 Schedule of Contributions – Retirement Enhancement Plans ............................................................. 91 Schedule of Investment Returns – Retirement Enhancement Plans ................................................... 92 Budgetary Comparison Schedule by Department - General Fund ........................................................ 93 Note to Required Supplementary Information ...................................................................................... 94 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ............................................................... 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................ 102 Budgetary Comparison Schedules - Special Revenue Funds: State Gasoline Tax ........................................................................................................................... 108 Proposition A .................................................................................................................................... 109 Proposition C .................................................................................................................................... 110 Community Development Block Grant ............................................................................................. 111 Senior Nutrition ................................................................................................................................. 112 Public Benefit Program ..................................................................................................................... 113 Air Quality Improvement ................................................................................................................... 114 Grants and Seizure ........................................................................................................................... 115 Fire Safety ........................................................................................................................................ 116 Monrovia Nursery ............................................................................................................................. 117 Employee Benefits ............................................................................................................................ 118 Utility Mitigation ................................................................................................................................. 119 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED) Highway 39 ................................................................................................................................... 120 LACMTA ....................................................................................................................................... 121 Measure R .................................................................................................................................... 122 AB939 Fee .................................................................................................................................... 123 Budgetary Comparison Schedules - Capital Projects Funds: Park In-Lieu ................................................................................................................................... 124 Public Works Endowment ............................................................................................................. 125 Budgetary Comparison Schedules - Debt Service Fund: Public Financing Authority ............................................................................................................ 126 Combining Statement of Net Position – Nonmajor Proprietary Funds ............................................ 127 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Proprietary Funds ........................................................................... 128 Combining Statement of Cash Flows – Nonmajor Proprietary Funds ............................................. 129 Combining Statement of Net Position – Internal Service Funds .................................................. 130 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ................................................................................. 132 Combining Statement of Cash Flows – Internal Service Funds ................................................... 134 Combining Statement of Changes in Assets and Liabilities – Agency Fund ............................... 136 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Water – Enterprise Fund ....................................................................................... 137 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Light – Enterprise Fund ......................................................................................... 138 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number STATISTICAL SECTION Table 1 – Net Position by Component .......................................................................................... 141 Table 2 – Change in Net Position ................................................................................................. 142 Table 3 – Fund Balances of Governmental Funds ....................................................................... 144 Table 4 – Changes in Fund Balances of Governmental Funds ................................................... 145 Table 5 – Light Department, Electricity Sold by Type of Customer .............................................. 146 Table 6 – Electricity Rates ............................................................................................................ 147 Table 7 – Largest Electrical Customers ....................................................................................... 148 Table 8 – Water Sold by Type of Customer ................................................................................. 149 Table 9 – Water Rates .................................................................................................................. 150 Table 10 – Largest Water Customers .......................................................................................... 151 Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................ 152 Table 12 – Direct and Overlapping Property Rates ...................................................................... 153 Table 13 – Principal Property Tax Payers .................................................................................... 154 Table 14 – Property Tax Levies and Collections .......................................................................... 155 Table 15 – Ratios of Outstanding Debt by Type .......................................................................... 156 Table 16 – Ratio of General Bonded Debt Outstanding ............................................................... 157 Table 17 – Direct and Overlapping Debt ...................................................................................... 158 Table 18 – Legal Debt Margin Information ................................................................................... 159 Table 19 – Pledged Revenue Coverage ...................................................................................... 160 Table 20 – Pledged Revenue Coverage, Tax Allocation Bonds – Redevelopment Agency ....................................................... 162 Table 21 – Demographic and Economic Statistics ....................................................................... 163 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page Number STATISTICAL SECTION Table 22 – Principal Employers .................................................................................................... 164 Table 23 – Full-time and Part-time Employees by Function ........................................................ 165 Table 24 – Operating Indicators by Function ............................................................................... 166 Table 25 – Capital Asset Statistics by Function ........................................................................... 167 Table 26 – Schedule of Credits .................................................................................................... 168 THIS PAGE INTENTIONALLY LEFT BLANK The Canyon City-Gateway to the American Dream January 29, 2016 Honorable Mayor and Council Members City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 Honorable Mayor and Council Members: I am pleased to present to you the City of Azusa's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. The report is intended to update readers on the status of the City's financial position and results of operations for the past fiscal year, 2014-15. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material statements. This CAFR has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). The report contains a citywide view of all governmental and business-type activities, as well as a focus on the financial position and operating results of the City's major funds. The financial statements included in this CAFR represent all City funds. The City's financial statements have been audited by Lance, Soll & Lunghard, LLP (LSL). LSL is an independent public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The data presented is believed to be accurate in all material aspects and is designed to set forth fairly the financial position and the results of the City's operations as measured by the financial activity of the various funds. All necessary disclosures are included to enable the reader to understand fully the financial activities and operations of the City. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2015, are free of material misstatement. The City received a qualified opinion from its independent auditor for the City's CAFR for the year ended June 30, 2015. The independent auditor's report is presented as the first component of the financial section of the CAFR. The scope of the examination did not include the statistical section of this report. Finance Department• 213 E. Foothill Blvd.• P.O. Box 1395 • Azusa, CA 91702-1395 Tel: (626) 812-5203 • FAX (626) 334-6358 Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE GOVERNMENT The City of Azusa was founded in 1887 and is located in the County of Los Angeles, situated 27 miles northeast of the City of Los Angeles, and nestled against the San Gabriel Mountain foothills. The City was incorporated in 1898 as a general law city and operates as a Council/Manager form of government. The four City Council members are elected at large for four-year terms with elections staggered at two-year intervals. The Mayor is elected at-large for a two-year term. The City Council appoints the City Manager to manage the City's staff and implement the policies established by the Council. The City encompasses approximately 9 square miles. The name Azusa can be traced to a native village that existed long before Spanish explorers arrived in 1769. The City boomed in population after the arrival of the railroad and was known as the "El Susa Rancho". The discovery of gold in the San Gabriel Canyon increased the population base in 1854, and by 1860 over 2,000 inhabitants resided in the area. The U.S. government bought a portion of the land from founder Henry Dalton for homesteading purposes. However, it was not until Los Angeles banker, Jonathan 0. Slauson acquired the prized orchard community of Azusa Rancho that the foundation and eventual incorporation on December 29, 1898 took place. Orange and lemon groves covered the land and gave way to homes and industry affording new generations of families and entrepreneurs to pursue the American dream. Today, the city prides itself on a vibrant industrial base and diverse neighborhoods. Industry within Azusa is diversified with major employers encompassing the fields of education, aerospace industry, light manufacturing, and retail services. Azusa offers a full range of municipal services, including community development, library, police, public works, recreation and family services, and general administration. Fire services are contracted with Los Angeles County. The City owns and operates an electric public utility for its citizens providing electric services to customers within the City limits. The City also owns and operates a water system whose service territory includes the City and adjoining portions of neighboring cities and unincorporated areas of Los Angeles County. LOCAL ECONOMIC CONDITIONS AND OUTLOOK Azusa enjoys a diverse local economy and City revenues are less dependent on single source or cyclical revenues than most of the surrounding Cities in the region. Sales Tax, though important, is not the City's primary revenue source. Consequently, the City is relatively better insulated from major economic downturns. The planned and funded expansion of a commuter light railway transportation coming through the City, the Los Angeles Metro Gold Line, is scheduled to open in March 2016. The Gold Line is Finance Department• 213 E. Foothill Blvd.• P.O. Box 1395 • Azusa, CA 91702-1395 Tel: (626) 812-5203 • FAX (626) 334-6358 ii anticipated to bring additional economic activity to the City's revitalizing Downtown with transit oriented development projects that include a parking structure. The Gold Line will have two stops in Azusa and is projected to bring additional visitors to the City. Rosedale, the City's new housing development, continues to experience stable home sales and is anticipated to be fully developed and sold in 2017. These home sales and the improving economy are providing slight, but steady increases in property and sales tax revenues. The unemployment rate for the City in June 2015 is down to 5.5% from 8.9% of last year. New businesses such as Chick-fil-A and ELS Outlet played a role in providing new jobs in the City. Assessed valuation ("AV") of citywide properties for 2014-15 increased by 8.0% and is attributable to the increased new homes sales in various housing developments, such as the in Rosedale and other smaller tracts in the southern areas of the City. In addition, the improving housing market is also a factor in the higher AV. The AV has risen for the third straight year after three years of decline. In addition to the housing construction in Rosedale, condominiums and townhomes continue to be developed in several smaller vacant lands in the City. Thus, the future AV for the City is expected to continue to rise. Lagunitas Brewery, which is the nation's sixth largest craft brewing company, has announced plans to open a new state-of-the art brewery in Azusa in early 2017. Also a 107-room Hilton Homes to Suites has been approved and is scheduled to be completed and operational in 2017. These businesses will continue to expand the economic development in Azusa by providing jobs and additional property tax revenue for the City. In addition, 'the transient occupancy tax generated by the hotel will increase the General Fund revenues. As the U.S. economy continues to improve, the City is projected to remain on the path to financial recovery. The City has adopted a balanced budget for FY 2015-16 without reducing services. Moreover, the City has added 9.5 full-time equivalent (FTE) positions with 4.5 FTEs allocated to the General Fund. Based on. the economic changes, mid-year adjustments are made to revenues and expenditures. It is vital that the City continue to monitor and control all potential expenditure increases due to the difficulty of revenues to keep pace. LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES The laws relating to the dissolution of the former Redevelopment Agency of the City of Azusa ("RDA") continue to be a challenge to the City. The RDA properties transferred to the City, to repay several loans, were ordered by the California State Department ·Of Finance ("DOF") to be returned to the Successor Agency to the RDA ("SA"). However, the City has already reinstated one of the loans with the SA and was approved by the DOF. The first payment installment is expected in FY 2016-17. The City plans to reinstate other loans between the City and the SA in order to be repaid immediately. The City must also deal with its financial obligations for retirement and other post­ employment benefits (OPEB), as well as ever-escalating healthcare costs, while trying to maintain current service levels. The City expects retirement costs to continue to increase due to the dramatic market losses of the stock market turmoil in 2008 and 2009, which eroded the value of the CalPERS pension fund. Retirement costs are also Finance Department• 213 E. Foothill Blvd.• P.O. Box 1395 • Azusa, CA 91702-1395 Tel: (626) 812-5203 • FAX (626) 334-6358 iii anticipated to rise because of the recent decision by the CalPERS Board of Administration to change their amortization and smoothing policy. In April of 2013, CalPERS approved an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period, as opposed to the previous policy which spread investment returns over a 15-year period with gains and losses paid over a rolling 30- year period. CalPERS pension costs are projected to account for 13.6% of total operating expense in FY 2015-16. To address the increases, the management team of the City will be proposing solutions with various employee groups to combat the increasing pension costs. Despite the dissolution of the Redevelopment Agency and increasing retirement costs, the City continues to pursue economic development to increase the City's tax base, revenue sources, create and retain jobs to ensure the improvement of its financial health. Pursuing smart development opportunities as a mechanism to help revitalize the City is crucial to the City's long-term economic health. Financial policies will continue to be established and implemented to ensure that the City remains on the right path to recovery. The City's goal is to set aside reserves to fare unforeseen circumstances while continuing to maintain its service levels. Many of these issues will be managed and completed to the benefit of the City in the near future. Continued financial prudence by the Council and a resolve on the part of staff and management to work together has resulted in the FY 2014-15 General Fund operating surplus. Although the General Fund financial statement reflects a loss, the negative balance is attributable to the transfer of several former RDA's properties, which had been used to satisfy outstanding General Fund loans, back to the SA As these properties are sold, the City hopes to recover a portion, if not all of the original amount loan to the former RDA RELEVANT FINANCIAL POLICIES The City of Azusa has adopted a comprehensive set of financial policies and/or ordinances. The City requires the adoption of a balanced annual operating budget (i.e., estimated revenues equal to or in excess of appropriations). In addition, budget amendments of $100,000 or more must be approved by City Council. This is the legal level of budgetary control. Capital Improvement Projects are maintained by project life. Therefore, the budget appropriation for these projects may need to be re-budgeted in subsequent accounting periods. An lnterfund Loan policy and a General Fund Reserve policy were also established to ensure and guide the City to continued financial recovery. Various policies are planned to be developed in FY 2015-16 related to debt, internal controls and fiscal sustainability. As a general law city, Azusa operates its pooled idle cash investments under the Prudent Man Rule (California Civil Code Section 2261, et. seq.), which in essence states that "in investing property for the benefit of another, a trustee shall exercise the judgment and care, under circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs ... " The City's cash management system is designed to monitor and forecast expenditures and revenues as accurately as possible and to invest funds to the fullest extent possible. The City Finance Department• 213 E. Foothill Blvd.• P.O. Box 1395 • Azusa, CA 91702-1395 Tel: (626) 812-5203 • FAX (626) 334-6358 iv attempts to obtain the highest available investment yields consistent with the criteria established and outlined in the City's Investment Policy. Some of the instruments in which the City may invest are: U.S. Government Securities, Certificates of Deposit, Bankers' Acceptances, the State of California Local Agency Investment Fund (LAIF), Treasury Bills, Repurchase Agreements, and regular savings and demand deposits. As previously mentioned above, the City will continue to establish policies that will guide staff and the departments to ensure continued financial health and stability. ACKNOWLEDGMENTS This document could not have been prepared without the dedicated efforts of the entire Finance Department staff. We wish to thank all City departments for their assistance in providing the data necessary to prepare this report. The City's independent auditors, Lance, Soll and Lunghard, LLP, provided expertise and advice in preparing this financial report. Through the team effort of its City Council, management and employees, the City expects to continue the high level of service, which is currently provided to the Azusa community. Credit is due to the Mayor and City Council for their support in maintaining the highest standard of professionalism in the management of the City of Azusa's finances. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Azusa's finances for all those with an interest in the agency's finances and overall fiscal condition. If you have questions concerning any of the information provided in this report or need additional financial information, contact the City's Finance Department by calling (626)812-5203 or by directing correspondence to 213 East Foothill Blvd., P. 0. Box 1395, Azusa, California 91702-1395. Finance Department• 213 E. Foothill Blvd.• P.O. Box 1395 • Azusa, CA 91702-1395 Tel: (626) 812-5203 • FAX (626) 334-6358 v Se n i o r N u t i r i t i o n Wo m a n ' s C l u b Pl a n n i n g Co n t r a c t Se r v i c e s Ad m i n i s t r a t i o n Ci t y Ma n a g e r ' s Of f i c e Pu b l i c In f o r m a t i o n Co m m u n i t y Fa c i l i t i e s Di s t r i c t s Co m m u n i t y Im p r o v e m e n t Su c c e s s o r Ag e n c y Re c r e a t i o n Bu s i n e s s Li c e n s e De b t S e r v i c e Ci t y o f A z u s a Or g a n i z a t i o n a l C h a r t Po l i c e Em e r g e n c y Se r v i c e s En g i n e e r i n g Fa c i l i t i e s L& W Se r v i c e s Ri s k Ma n a g e m e n t Pu r c h a s i n g Li b r a r y Ci t i z e n s o f A z u s a Ma y o r & C i t y C o u n c i l Ut i l i t y B o a r d Su c c e s s o r A g e n c y B o a r d Ci t y M a n a g e r In f o r m a t i o n Te c h n o l o g y Ci t y Se r v i c e s Yo u t h a n d Ou t r e a c h Se r v i c e s Ci t y A t t o r n e y Ac c o u n t i n g Se n i o r C e n t e r Ci t y T r e a s u r e r Ad v i s o r y B o a r d s & C o m m i s s i o n s Fi n a n c e Ge n e r a l Se r v i c e s Re c r e a t i o n & Fa m i l y S e r v i c e s Pa r k s Ma i n t e n a n c e Po l i c e S e r v i c e s Ci t y C l e r k Ec o n o m i c & Co m m u n i t y De v e l o p m e n t Bu i l d i n g Hu m a n Re s o u r c e s Pe r s o n n e l Pu b l i c S a f e t y Li g h t a n d W a t e r Ut i l i t i e s Pu b l i c W o r k s Se w e r Re f u s e Tr a n s p o r t a t i o n Gr a f f i t i Ab a t e m e n t Co n s u m e r Se r v i c e s St r e e t s / Si d e w a l k Ma i n t e n a n c e El e c t r i c Pu b l i c B e n e f i t F i r e S a f e t y Wa t e r vi City of Azusa ELECTED OFFICIALS AND DEPARTMENT HEADS 213 E. Foothill Boulevard Azusa, CA 91702 (626) 812-5200 Fax (626) 334-6358 www.ci.azusa.ca.us ELECTED OFFICIALS TITLE TERM EXPIRATION Jeffrey Cornejo City Clerk March, 2017 Art Vasquez City Treasurer March, 2017 Joseph Rocha Mayor March, 2017 Edward Alvarez Mayor Pro-Tem March, 2017 Angel Carrillo Councilmember March, 2019 Robert Gonzales Councilmember March, 2017 Uriel Macias Councilmember March, 2019 DEPARTMENT HEADS TITLE PHONE NUMBER Troy L. Butzlaff City Manager 626-812-5238 Daniel Bobadilla Acting Director of Public Works 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 Amelia Ayala Director of Human Resources/Risk Management 626-812-5183 Susan Paragas Director of Finance 626-812-5202 Daryl L. Osby Fire Chief 626-974-8371 City Attorney Best, Best, & Krieger (Marco Martinez) 949-263-2603 vii THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Azusa, California Report on the 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, 2015, 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. Auditor’s 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. To the Honorable Mayor and Members of the City Council City of Azusa, California Basis for Qualified Opinion The City of Azusa’s four defined benefit plans invested with the Public Agency Retirement System (PARS), an agency managing pension benefit investments, is carried with a liability of $4,369,219 on the Statement of Net Position. As described in Note 6d, the plan fiduciary net position for each PARS plan was a factor in determining the net pension liability for the City’s proportionate share of the liability. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of the City’s investment and allocation for their PARS defined benefit plans because the PARS auditors did not provide an opinion on the beginning balances of the fiduciary net position for the plans. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, 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, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 6 to the financial statements, in 2015 the City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions made Subsequent to the Measurement Date – An Amendment of GASB Statement No. 68. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the respective budgetary comparison schedule for the general fund, schedule of changes in the net pension liability and related ratios – agent multiple-employer miscellaneous plans, schedule of contributions – agent multiple-employer miscellaneous plans, schedule of proportionate share of the net pension liability – cost-sharing multiple-employer safety plans, schedule of contributions - cost-sharing multiple-employer safety plans, schedule of changes in the net pension liability and related ratios – retirement enhancement plans, schedule of contributions – retirement enhancement plans, and schedule of investment returns – retirement enhancement plans to 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. 2 To the Honorable Mayor and Members of the City Council City of Azusa, California 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 and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and 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 the schedule of expenditures of federal awards 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2016 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 the City’s internal control over financial reporting and compliance. Brea California January 29, 2016 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 City of Azusa Management’s Discussion and Analysis June 30, 2015 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, 2015. 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 v of this report. All amounts, unless otherwise indicated, are expressed in whole dollars. Financial Highlights  The assets and deferred outflows of resources for the City exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2015 by $95,159,592 (net position).  Total City assets of $270,689,272 include $153,662,962 or 56.8% of non-current assets attributed to capital assets, net of depreciation.  Total City liabilities of $169,260,874 include $154,336,946 or 91.2% of long-term liabilities attributed mainly to tax allocation bonds, certificates of participation, OPEB and pension liabilities.  As of June 30, 2015, the City’s governmental funds reported combined fund balances of $30,044,155.  At the end of the current fiscal year, the total fund balance for the General Fund was decreased by $870,766 to $19,547,182. This was due to the transactions returning some of the land held for resale to the Successor Agency to the former Redevelopment Agency of the City of Azusa.  Total General Fund revenues received for the year were $48,037,852 and total General Fund expenditures for the year were $40,990,572, an excess of revenues over expenditures amounting to $7,047,280. After extraordinary loss in the General Fund, there was an excess of $2,934,215. Of the totals for both revenues and expenditures, a one-time amount of $11,035,286 is included as the balance of a developer loan forgiven due to the terms of an expired agreement. This does not include transfers. Details are located within the General Fund Budgetary Highlights within the MD & A. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 1) Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows, and liabilities, and deferred inflows with the difference 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 5 City of Azusa Management’s Discussion and Analysis June 30, 2015 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). 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 Azusa Public Financing Authority for which the City of Azusa is financially accountable. Financial information for these component units has been included as an integral part of the primary government. 2) Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Azusa, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Azusa maintains 24 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. The Rosedale Contribution (“RC”) fund is a separate fund, but is combined with the General Fund, as the funds in the RC fund is considered unrestricted. Data from the other 23 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/Risk Management, 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, 2015 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 Agency funds are offset by a liability; the accrual basis of accounting is used to recognize receivables and payables. The legally separate Successor Agency to the former RDA of the City “Successor Agency” is reported as a private purpose trust fund. 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. Governmental Business-type Activities Activities Total 2015 2014 2015 2014 2015 2014 Current and other assets 37,982,057$ 46,008,111$ 79,044,253$ 74,869,479$ 117,026,310$ 120,877,590$ Capital assets, net 29,912,255 29,959,431 123,750,707 127,134,338 153,662,962 157,093,769 Total assets 67,894,312 75,967,542 202,794,960 202,003,817 270,689,272 277,971,359 Deferred charge on refunding - - 1,138,433 1,198,351 1,138,433 1,198,351 Deferred pension related items 4,124,387 - 1,158,071 - 5,282,458 - Total deferred outflows of resources 4,124,387 - 2,296,504 1,198,351 6,420,891 1,198,351 Current liabilities 3,732,207 4,541,446 11,191,721 8,857,114 14,923,928 13,398,560 Long-term liabilities 66,088,846 42,030,353 88,248,100 79,499,538 154,336,946 121,529,891 Total liabilities 69,821,053 46,571,799 99,439,821 88,356,652 169,260,874 134,928,451 Deferred pension related items 9,833,770 - 2,855,927 - 12,689,697 - Total deferred inflows of resources 9,833,770 - 2,855,927 - 12,689,697 - Net investment in capital assets 28,121,302 29,959,431 53,700,812 58,465,869 81,822,114 88,425,300 Restricted 10,502,851 9,222,166 15,085,506 9,845,901 25,588,357 19,068,067 Unrestricted (46,260,277) (9,785,854) 34,009,398 46,533,746 (12,250,879) 36,747,892 Total net position (7,636,124)$ 29,395,743$ 102,795,716$ 114,845,516$ 95,159,592$ 144,241,259$ As of June 30, 2015, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $95,159,592. This represents a decrease of $49.1 million from the prior year and can be attributed to the implementation of GASB 68, Accounting and Financial Reporting for Pensions implemented in FY 2014-15. This statement has had a material impact on the City’s financial statements. The primary objective of GASB 68 was to improve reporting by the state and local governments for pensions. The statement establishes new standards for measuring and recognizing liabilities and expenditures, as well as expands note disclosures and other information about the City’s pensions. See Note 6 of the financial statements for further detail. The new pronouncement caused an increase in long-term obligations by $46.5 million and is offset by a net increase of $13.6 million from current year activities that included the forgiven loan balance of $11.0 million and a $2.0 million increase in tax revenues. 7 City of Azusa Management’s Discussion and Analysis June 30, 2015 The largest portion of the net position reflects the City’s $81.8 million investment in capital assets less any capitalǦrelated outstanding debt. Capital assets are the aggregated value of land, buildings and improvements that are used to provide services. Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Another portion of the City’s net position is subject to external restrictions, such as debt covenants, grantor’s stipulations, or enabling legislation, on how they may be used. As of June 30, 2015, the restricted assets were $25.6 million of the total net position. Of this amount, $15.1 million is for a rate stabilization fund, $5.5 is for debt service, $5.2 million is restricted for community development projects such as transportation projects and $3.8 million for capital projects such as street repair and maintenance. The remaining amount relates to Police grants. At June 30, 2015, the unrestricted net position was a negative $12.3 million due to the implementation of GASB Statement No. 68. The following chart shows the comparison of the three components of net position for Fiscal Years 2014-15 and 2013-14 (in millions). Governmental activities. The following condensed summary of activities of the City’s governmental activities for the year ended June 30, 2015 shows total net position is a negative $7,636,124, a decrease of $37,031,867 from prior year and primarily attributable to the restatement related to GASB 68 and the forgiven loan from a developer. Business type activities. Business-type activities net position totaled $102,795,716, a decrease of $12,049,800 (-10.5%) from the prior year. The key element is the restatement of GASB 68. Net investment in capital assets Restricted Unrestricted Total Net Position FY 13/14 $88.4 $19.1 $36.7 $144.2 FY 14/15 $81.8 $25.6 $(12.3) $95.1 (20.0) 20.0 60.0 100.0 140.0 180.0 8 City of Azusa Management’s Discussion and Analysis June 30, 2015 Governmental Business-type Activities Activities Total 2015 2014 2015 2014 2015 2014 Program Revenues: Charges for services 9,492,311$ 9,752,821$ 73,519,764$ 72,389,622$ 83,012,075$ 82,142,443$ Operating contributions and grants 13,916,073 3,836,479 - - 13,916,073 3,836,479 Capital contributions and grants 408,905 442,727 - - 408,905 442,727 General Revenues: Taxes 31,314,539 29,315,094 574,179 542,409 31,888,718 29,857,503 Motor vehicle in lieu - 20,876 - - - 20,876 Investment earnings 353,285 (423,898) 378,713 300,515 731,998 (123,383) Miscellaneous 629,507 759,132 224,680 399,293 854,187 1,158,425 Total Revenues 56,114,620 43,703,231 74,697,336 73,631,839 130,811,956 117,335,070 Expenses: General government 7,834,391 8,843,327 - - 7,834,391 8,843,327 Public safety 21,279,643 21,284,020 - - 21,279,643 21,284,020 Community development 2,384,308 2,593,720 - - 2,384,308 2,593,720 Parks and recreation 3,878,961 3,808,038 - - 3,878,961 3,808,038 Public works 5,019,152 5,412,524 - - 5,019,152 5,412,524 Interest and fiscal charges 699,155 1,330,555 - - 699,155 1 ,330,555 Water - - 21,497,271 18,345,227 21,497,271 18,345,227 Light - - 44,328,679 45,011,550 44,328,679 45,011,550 Sewer/Wastewater - - 2,368,124 2,434,295 2,368,124 2,434,295 Refuse contract - - 3,042,337 2,938,255 3,042,337 2,938,255 Total Expenses 41,095,610 43,272,184 71,236,411 68,729,327 112,332,021 112,001,511 Increase/(decrease) in net position before transfers 15,019,010 431,047 3,460,925 4,902,512 18,479,935 5,333,559 Transfers 1,458,028 1,535,996 (1,458,028) (1,535,996) - - Extraordinary items (4,113,065) - - - (4,113,065) - Change in Net Position 12,363,973 1,967,043 2,002,897 3,366,516 14,366,870 5,333,559 Net Position (Deficits) - Beginning 29,395,743 27,828,998 114,845,516 108,984,054 144,241,259 136,813,052 Restatement (49,395,840) (400,298) (14,052,697) 2,494,946 (63,448,537) 2,094,648 Net Position (Deficits) - Ending (7,636,124)$ 29,395,743$ 102,795,716$ 114,845,516$ 95,159,592$ 144,241,259$ City of Azusa - Smmary of Changes in Net Position (Deficits) The City’s total revenues are $130,811,956 and the costs of all programs and services are $112,332,021. Fiscal year 2014-15 revenues increased by $13,476,886 (11.5%). Expenses increased by $330,510 (0.3%) from prior year. Key factors include:  The increase in the governmental activities revenue was mainly due to the previously mentioned forgiven loan. Approximately $1,999,445 of additional revenues was received from taxes that are attributable to the increased economic development activities in the City. The City also received a pass-through payment from the residuals of the former redevelopment agencies of $126,500.  The City experienced an increase of 7.10% in Franchise Fees and Utility User Tax related to increases in Business-Type revenues even though the Water fund had lower revenues related to the imposed water drought restrictions.  Community Development divisional revenues increased by $469,454 (6.7%) compared to FY 2013-14. The increase was due to increased development in the City such as the construction of new housing in the Rosedale housing development project, additional landfill, host fee and rental inspection activities. 9 City of Azusa Management’s Discussion and Analysis June 30, 2015 Key elements of this year’s summary of activities are as follows: i Property tax revenue increased by $507,968, Sales tax revenue increased by a $346,448 and Franchise fees increased by $571,269 from the prior year. i Charges for services revenue decreased by 2.7% or $260,150; Use of money and property had a positive balance of $353,285 primarily due to increase in interest income earned from an improved cash position. i Transient Occupancy Taxes (“TOT”) increased by 17.1% or $38,140 primarily due to the voter-approved increase in the TOT rate from 7.5% to 10.0%. This increase only reflects the last quarter that the new rate went into effect. 10 City of Azusa Management’s Discussion and Analysis June 30, 2015  Total Governmental Activities expenses decreased $2,176,574 (-5.0%) over prior year.  Total General Fund expenses decreased $147,332 (-0.50%) compared to prior year. The reduction is mainly due to a lower capital outlay expenses.  Community development expenditures decreased $166,366 (-10.1%) primarily due to reductions in plan check activities. Public Safety increased by $648,116 (3.9%) mainly caused by retirement payouts. 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, unrestricted 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 $30,044,155, an increase of $518,254 in comparison with the prior year’s fund balance. The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2014-15, its fund balance decreased by $706,284, primarily as a result of the properties returned to the Successor Agency. However, in removing the property transfer activities, the General Fund would have increased by approximately $3.4 million. At the end of the current fiscal year, the General Fund total fund balance was $19,547,182. 11 City of Azusa Management’s Discussion and Analysis June 30, 2015 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 $36,970,514. Total unrestricted net position decreased by $3,559,972 (-8.78%) and total net position decreased by $8,056,804 (-7.11%) from the previous fiscal year. The reduction in total net position was caused by the GASB 68 restatement of a negative $9,978,883. Unrestricted net position of the City’s Water Utility at the end of the year amounted to $25,407,542 which is a decrease of $3,645,514 (-12.55%) and total net position also decreased by $5,050,530 (-8.75%) from the previous fiscal year. The GASB 68 restatement of a negative $4,370,660 was the primary cause. Water revenues were down slightly by $309,959 and expenses increased by $3,097,480 of which $3,012,046 was due to increase costs in sources of supply and cost of sales and services primarily attributable to the drought issues. Unrestricted net position of the City’s Light Utility at the end of the year amounted to $9,756,028. Total unrestricted net position decreased by $11,880,536 (-16.16%) and total net position also decreased by $1,925,519 (-4.27%) from the previous fiscal year. This negative change was primarily attributable to the GASB 68 restatement of negative $3,848,694. Light revenues were actually higher by $1,121,509 (2.48%) while expenses were lower by $849,533 from prior year. The following chart highlights total revenue and total expenses for each of the business type activities for fiscal year end June 30, 2015. Water Light Sewer/ Wastewater Refuse Contract Revenue $21.7 $46.6 $2.7 $3.7 Expenses $21.8 $44.6 $2.5 $3.7 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 12 City of Azusa Management’s Discussion and Analysis June 30, 2015 General Fund Budgetary Highlights Following is a summary of budgetary changes and actual results for General Fund, revenues, expenditures, and other financing sources: Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes 27,285,945$ 27,392,345$ 29,245,228 1,852,883$ Charges for services 2,350,510 2,290,510 2,438,210 147,700 Assessments 1,666,880 1,704,880 1,299,713 (405,167) Other revenue 2,697,250 2,923,550 15,054,701 12,131,151 Total revenue 34,000,585 34,311,285 48,037,852 13,726,567 EXPENDITURES Operations 29,254,245 29,655,570 32,822,327 (3,166,757) Capital Outlay 122,465 114,135 109,777 4,358 Debt Service 1,350,235 1,350,235 12,171,533 (10,821,298) Total expenditures 30,726,945 31,119,940 45,103,637 (13,983,697) Excess of revenues over expenditures 3,273,640 3,191,345 2,934,215 27,710,264 OTHER FINANCING SOURCES (USES) Transfers in 1,649,870 1,649,870 1,604,547 (45,323) Transfers out 4,918,400 5,618,400 5,245,046 373,354 Total other financing sources (uses)(3,268,530) (3,968,530) (3,640,499) 328,031 Net change in fund balance 5,110 (777,185) (706,284) 70,901 Fund balance beginning of year 20,253,466 20,253,466 20,253,466 - Fund balance end of year $20,258,576 $19,476,281 $19,547,182 $70,901 City of Azusa - General Fund Budgetary Summary Revenues, Expenditures, and Changes in Fund Balance June 30, 2015 Budgeted Amounts The difference between the original expenditure budget and the final amended expenditure budget was an increase of $392,995 with highlights as follows:  The budgets for the departments of the City Clerk and Human Resources rose to provide needed part-time hours. Various employee group contractual agreements such as vacation payout budgets were increased.  Public Safety budget rose due to contract obligations and retirement costs.  The Facilities Maintenance division budget was increased to cover maintenance costs for various City facilities such as painting of City Hall. 13 City of Azusa Management’s Discussion and Analysis June 30, 2015 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, 2015 amounted to $153,662,962 (net of accumulated depreciation). This investment includes land, construction in progress, land improvements, buildings and structures, machinery and equipment, automotive equipment and infrastructure. 2015 2014 2015 2014 2015 2014 Land 1,319,536$ 1,319,536$ 2,988,973$ 2,988,973$ 4,308,509$ 4,308,509$ Construction in Progress 1,333,303 473,263 825,486 1,103,150 2,158,789 1,576,413 Land Improvements 1,327,038 1,452,132 420,617 459,293 1,747,655 1,911,425 Buildings and Structures 6,796,645 7,096,152 12,905,633 13,403,746 19,702,278 20,499,898 Machinery and Equipment 1,418,399 1,323,308 2,952,321 3,369,035 4,370,720 4,692,343 Automotive Equipment 691,136 623,704 290,069 404,868 981,205 1,028,572 Infrastructure 17,026,198 17,671,336 103,367,608 105,405,273 120,393,806 123,076,609 Total 29,912,255$ 29,959,431$ 123,750,707$ 127,134,338$ 153,662,962$ 157,093,769$ 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 $107,800,670. Of this amount, $31,155,756 is a liability of the Governmental Activities and $76,644,914 is a liability of the Business Type Activities. The increase in the outstanding balances is the result of GASB 68 reporting. Additional information on the City’s long-term debt can be found in Note 5 of Notes to the Basic Financial Statements. 2015 2014 2015 2014 2015 2014 Employee Leave Benefits 3,704,926$ 3,710,262$ 1,369,793$ 1,323,419$ 5,074,719$ 5,033,681$ Net OPEB Liability 12,287,102 10,383,609 - - 12,287,102 10,383,609 Advance from the Successor Agency 8,208,833 8,208,833 - - 8,208,833 8,208,833 2003 COPS 2,285,000 2,540,000 1,400,000 1,985,000 3,685,000 4,525,000 2006 Water Revenue Bonds - - 52,270,000 53,315,000 52,270,000 53,315,000 2008 Taxable Pension Fnding Bd 3,205,000 4,075,000 - - 3,205,000 4,075,000 2011 Sewer Installment Loan - - 4,730,000 5,080,000 4,730,000 5,080,000 2012 Electric Refunding Bond - - 5,820,000 5,820,000 5,820,000 5,820,000 2012 Water Refunding Bonds - - 7,355,000 8,045,000 7,355,000 8,045,000 Developer Agreements - 10,700,656 - - - 10,700,656 Claims and Judgments Payable 1,430,273 2,356,493 - - 1,430,273 2,356,493 Unamortized Premium/Discount 34,622 55,500 3,700,121 3,931,119 3,734,743 3,986,619 Total 31,155,756$ 42,030,353$ 76,644,914$ 79,499,538$ 107,800,670$ 121,529,891$ City of Azusa - Outstanding Debt Governmental Business Type Activities Activites Total 14 City of Azusa Management’s Discussion and Analysis June 30, 2015 Economic Factors and Next Year’s Budgets and Rates The revenue projections for the 2015-16 General Fund adopted budget reflected a growth of 0.35% over the prior year’s final budget. Property taxes are anticipated to increase due to the home sales in Rosedale; however, building permit fees are projected to be reduced as construction in Rosedale slows down. General Fund expenditures, including transfers out and capital outlay, were lower by 0.20% for the 2015-16 adopted budget. Costs related to elections and plan checks are projected to be lower due to an off-year for elections and lower building and planning activities. The City strives to maintain high quality services while adopting a balanced budget. For fiscal year 2015-16, the City adopted a balanced budget with a surplus of $250,815 for the General Fund without any reductions in services and added 4.5 FTE to personnel positions. Rising retirement costs, such as pension and retiree health care, are main concerns for the City. In addition, the State’s dissolution of redevelopment agencies continues to negatively affect the City. Negotiations with employee bargaining groups will address solutions to the pension and retiree health care costs. The goal to develop properties owned by the former redevelopment agency is moving forward in order to generate additional revenues to help address additional costs in the long term. Furthermore, it is projected that property tax revenues will keep increasing as new home sales and the improvement in the economy continue. Staff will continue to be prudent with its budget and to monitor any legislative action that could impact the financial condition in Azusa. Request for Information This financial report is designed to provide a general overview of the financial position of the City of Azusa for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to City of Azusa Finance Department, 213 E. Foothill Blvd., Azusa, CA 91702. 15 THIS PAGE INTENTIONALLY LEFT BLANK 16 CITY OF AZUSA STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 17,826,533$ 39,158,491$ 56,985,024$ Receivables: Accounts 1,381,051 10,672,765 12,053,816 Taxes 1,631,600 - 1,631,600 Notes and loans 2,344,928 76,658 2,421,586 Accrued interest 7,663 25,378 33,041 Internal balances (4,987,053) 4,987,053 - Due from other governments 7,324 - 7,324 Due from Successor Agency 9,276,337 2,616,012 11,892,349 Prepaid costs 88,668 20,791 109,459 Deposits 466 - 466 Inventories 124,568 1,640,836 1,765,404 Land held for resale 7,384,436 - 7,384,436 Restricted assets: Cash and investments 2,308,717 13 2,308,730 Cash with fiscal agent 586,819 9,791,750 10,378,569 Cash held for rate stabilization - 10,054,506 10,054,506 Capital assets not being depreciated 2,652,839 3,814,459 6,467,298 Capital assets, net of depreciation 27,259,416 119,936,248 147,195,664 Total Assets 67,894,312 202,794,960 270,689,272 Deferred Outflows of Resources: Deferred charge on refunding - 1,138,433 1,138,433 Deferred pension related items 4,124,387 1,158,071 5,282,458 Total Deferred Outflows of Resources 4,124,387 2,296,504 6,420,891 Liabilities: Accounts payable 1,641,584 3,818,864 5,460,448 Accrued liabilities 1,379,580 749,117 2,128,697 Accrued interest 143,543 1,562,668 1,706,211 Unearned revenue 554,947 - 554,947 Deposits payable 12,550 5,027,877 5,040,427 Due to other governments 3 33,195 33,198 Noncurrent liabilities: Due within one year 4,973,560 3,794,565 8,768,125 Due in more than one year 13,895,094 72,850,349 86,745,443 Net OPEB liability 12,287,102 - 12,287,102 Net pension liability 34,933,090 11,603,186 46,536,276 Total Liabilities 69,821,053 99,439,821 169,260,874 Deferred Inflows of Resources: Deferred pension related items 9,833,770 2,855,927 12,689,697 Net Position: Net investment in capital assets 28,121,302 53,700,812 81,822,114 Restricted for: Community development projects 5,163,437 - 5,163,437 Public safety 1,036,599 - 1,036,599 Capital projects 3,820,164 - 3,820,164 Debt service 482,651 5,031,000 5,513,651 Rate stabilization - 10,054,506 10,054,506 Unrestricted (46,260,277) 34,009,398 (12,250,879) Total Net Position (7,636,124)$ 102,795,716$ 95,159,592$ JUNE 30, 2015 Primary Government See Notes to Financial Statements 17 CITY OF AZUSA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 7,834,391$ 3,517,810$ 10,965,086$ -$ Public safety 21,279,643 741,551 1,167,536 408,905 Community development 2,384,308 3,044,683 306,888 - Parks and Recreation 3,878,961 1,226,392 319,361 - Public works 5,019,152 961,875 1,157,202 - Interest on long-term debt 699,155 - - - Total Governmental Activities 41,095,610 9,492,311 13,916,073 408,905 Business-Type Activities: Water 21,497,271 21,515,397 - - SLight 44,328,679 46,222,264 - - SSewer/ Wastewater 2,368,124 2,636,707 - - GRefuse Contract 3,042,337 3,145,396 - - Total Business-Type Activities 71,236,411 73,519,764 - - Total Primary Government 112,332,021$ 83,012,075$ 13,916,073$ 408,905$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Utility users tax Other taxes Use of money and property Other Extraordinary loss on transfers of land held for resale Transfers Total General Revenues, extraordinary items, and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year Program Revenues See Notes to Financial Statements 18 Primary Government Governmental Business-Type Activities Activities Total 6,648,505$ -$ 6,648,505$ (18,961,651) - (18,961,651) 967,263 - 967,263 (2,333,208) - (2,333,208) (2,900,075) - (2,900,075) (699,155) - (699,155) (17,278,321) - (17,278,321) - 18,126 18,126 - 1,893,585 1,893,585 - 268,583 268,583 - 103,059 103,059 - 2,283,353 2,283,353 (17,278,321) 2,283,353 (14,994,968) 8,531,515 574,179 9,105,694 261,815 - 261,815 7,530,257 - 7,530,257 7,328,977 - 7,328,977 2,008,916 - 2,008,916 3,594,092 - 3,594,092 2,058,967 - 2,058,967 353,285 378,713 731,998 629,507 224,680 854,187 (4,113,065) - (4,113,065) 1,458,028 (1,458,028) - 29,642,294 (280,456) 29,361,838 12,363,973 2,002,897 14,366,870 29,395,743 114,845,516 144,241,259 (49,395,840) (14,052,697) (63,448,537) (7,636,124)$ 102,795,716$ 95,159,592$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 19 CITY OF AZUSA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 Other Total Governmental Governmental General Funds Funds Assets: Pooled cash and investments 4,042,960$ 11,090,480$ 15,133,440$ Receivables: Accounts 583,301 797,654 1,380,955 Taxes 1,625,514 6,086 1,631,600 Notes and loans 2,154 2,342,237 2,344,391 Accrued interest 4,458 2,633 7,091 Prepaid costs 7,430 9,965 17,395 Deposits - 466 466 Due from other governments 7,324 - 7,324 Inventories 124,568 - 124,568 Land held for resale 7,384,436 - 7,384,436 Restricted assets: Cash and investments 2,278,216 30,501 2,308,717 Cash and investments with fiscal agents 104,207 482,612 586,819 Advances to Successor Agency 9,276,337 - 9,276,337 Total Assets 25,440,905$ 14,762,634$ 40,203,539$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 510,575$ 369,662$ 880,237$ Accrued liabilities 1,195,718 125,951 1,321,669 Unearned revenues - 554,947 554,947 Deposits payable - 12,550 12,550 Due to other governments 3 - 3 Due to other funds - 15,410 15,410 Advances from other funds 4,187,427 750,000 4,937,427 Total Liabilities 5,893,723 1,828,520 7,722,243 Deferred Inflows of Resources: Unavailable revenues - 2,437,141 2,437,141 Total Deferred Inflows of Resources - 2,437,141 2,437,141 Fund Balances: Nonspendable: Inventory 124,568 - 124,568 Prepaid costs 7,430 - 7,430 Land held for resale 7,384,436 - 7,384,436 Notes and loans 2,154 - 2,154 Advances to Successor Agency 9,276,337 - 9,276,337 Deposits - - - Restricted for: Community development projects - 5,163,437 5,163,437 Public safety - 1,036,599 1,036,599 Capital projects - 3,820,164 3,820,164 Debt service - 482,651 482,651 Unassigned 2,752,257 (5,878) 2,746,379 Total Fund Balances 19,547,182 10,496,973 30,044,155 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 25,440,905$ 14,762,634$ 40,203,539$ 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, 2015 Fund balances of governmental funds 30,044,155$ 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.29,438,626 Deferred Outflows related to contributions made after the actuarial measurement date for the net pension liability. Contributions made subsequent to measurement date 3,803,853$ Adjustment due to differences in proportions 209,789 4,013,642 Long-term debt and compensated absences that have not been included in the governmental fund activity. Long-term liabilities (13,733,455) Compensated Absences (3,519,636) (17,253,091) Governmental funds report all 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.(12,287,102) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.(143,543) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.2,437,141 Governmental funds report all pension contributions as expenditures when paid however in the statement of net position the actuarially calculated accrual basis net pension liability is reported.(33,108,945) Deferred Inflows related to unrecognized actuarial gains and losses for the net pension liability: Net difference between projected and actual earnings on plan investments (9,545,375) Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions (17,754) (9,563,129) 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.(1,213,878) Net Position of governmental activities (7,636,124)$ See Notes to Financial Statements 21 CITY OF AZUSA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Other Total Governmental Governmental General Funds Funds Revenues: Taxes 29,245,228$ 2,069,311$ 31,314,539$ Assessments 1,299,713 - 1,299,713 Licenses and permits 1,600,109 - 1,600,109 Intergovernmental 728,188 3,946,500 4,674,688 Charges for services 2,438,210 2,209,045 4,647,255 Use of money and property 291,173 55,093 346,266 Fines and forfeitures 1,343,809 - 1,343,809 Contributions 10,798,039 66,446 10,864,485 Miscellaneous 293,383 385,240 678,623 Total Revenues 48,037,852 8,731,635 56,769,487 Expenditures: Current: General government 6,377,078 307,646 6,684,724 Public safety 17,228,141 4,550,928 21,779,069 Community development 1,479,675 884,883 2,364,558 Parks and recreation 3,036,100 553,852 3,589,952 Public works 588,268 3,445,084 4,033,352 Capital outlay 109,777 1,615,399 1,725,176 Debt service: Principal retirement 11,905,286 255,000 12,160,286 Interest and fiscal charges 266,247 151,212 417,459 Total Expenditures 40,990,572 11,764,004 52,754,576 Excess (Deficiency) of Revenues Over (Under) Expenditures 7,047,280 (3,032,369) 4,014,911 Other Financing Sources (Uses): Transfers in 1,604,547 4,570,202 6,174,749 Transfers out (5,245,046) (324,189) (5,569,235) Total Other Financing Sources (Uses)(3,640,499) 4,246,013 605,514 Extraordinary loss (4,113,065) - (4,113,065) Net Change in Fund Balances (706,284) 1,213,644 507,360 Fund Balances, Beginning of Year, as previously reported 20,417,948 9,107,953 29,525,901 Restatements (164,482) 175,376 10,894 Fund Balances, Beginning of Year, as restated 20,253,466 9,283,329 29,536,795 Fund Balances, End of Year 19,547,182$ 10,496,973$ 30,044,155$ 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, 2015 Net change in fund balances - total governmental funds 507,360$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay 1,807,786$ Depreciation (1,558,232) 249,554 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 12,160,286 Amortization of bond premiums/discounts 20,878 Accrued interest on obligation debt (334,630) 11,846,534 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.32,056 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.15,111 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.(1,903,493) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Cost-Sharing Safety PERS 641,521 Agent Miscellaneous PERS 304,598 Retirement Enhancement Plan PARS (2,061) 944,058 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.(645,364) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities.1,318,157 Change in net position of governmental activities 12,363,973$ See Notes to Financial Statements 23 CITY OF AZUSA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 23,007,273$ 11,443,162$ 2,988,852 $ 37,439,287$ 4,412,297 $ Receivables: Accounts 4,789,951 4,972,135 721,757 10,483,843 189,018 Notes and loans 1,236 71,471 - 72,707 4,488 Accrued interest - 14,538 893 15,431 10,519 Prepaid costs 5,098 11,303 - 16,401 75,663 Due from other funds 49,626 - - 49,626 - Inventories - 1,640,836 - 1,640,836 - Restricted: Cash and investments - 13 - 13 - Cash with fiscal agent 6,192,569 2,145,329 1,453,852 9,791,750 - Cash held for rate stabilization - 10,054,506 - 10,054,506 - Total Current Assets 34,045,753 30,353,293 5,165,354 69,564,400 4,691,985 Noncurrent: Advances to Successor Agency 2,616,012 - - 2,616,012 - Advances to other funds 4,006,427 931,000 - 4,937,427 - Capital assets - net of accumulated depreciation 83,478,863 28,912,008 10,832,707 123,223,578 1,000,758 Total Noncurrent Assets 90,101,302 29,843,008 10,832,707 130,777,017 1,000,758 Total Assets 124,147,055 60,196,301 15,998,061 200,341,417 5,692,743 Deferred Outflows of Resources: Deferred charge on refunding 785,734 352,699 - 1,138,433 - Deferred pension related items 336,735 377,676 87,495 801,906 466,910 Total Deferred Outflows of Resources 1,122,469 730,375 87,495 1,940,339 466,910 Total Assets and Deferred Outflows of Resources:125,269,524$ 60,926,676$ 16,085,556$ 202,281,756$ 6,159,653$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 1,621,112$ 1,540,991$ 562,037$ 3,724,140$ 856,071$ Accrued liabilities 99,773 103,754 29,770 233,297 573,731 Accrued interest 1,435,894 126,774 - 1,562,668 - Deposits payable 1,097,155 3,930,722 - 5,027,877 - Due to other governments 33,195 - - 33,195 - Due to other funds - - - - 34,216 Accrued compensated absences 324,367 363,945 78,509 766,821 345,595 Accrued claims and judgments - - - - 1,430,273 Bonds, notes, and capital leases 1,800,000 620,000 365,000 2,785,000 - Total Current Liabilities 6,411,496 6,686,186 1,035,316 14,132,998 3,239,886 Noncurrent: Accrued compensated absences 147,987 170,994 - 318,981 123,686 Bonds, notes, and capital leases 61,418,732 6,706,389 4,365,000 72,490,121 - Net pension liability 3,780,403 3,248,816 1,060,530 8,089,749 5,337,582 Total Noncurrent Liabilities 65,347,122 10,126,199 5,425,530 80,898,851 5,461,268 Total Liabilities 71,758,618 16,812,385 6,460,846 95,031,849 8,701,154 Deferred Inflows of Resources: Deferred pension related items 864,930 894,067 261,207 2,020,204 1,106,364 Total Deferred Inflows of Resources 864,930 894,067 261,207 2,020,204 1,106,364 Net Position: Net investment in capital assets 23,441,934 22,175,190 7,556,559 53,173,683 1,000,758 Restricted for debt service 3,796,500 1,234,500 - 5,031,000 - Restricted for rate stabilization - 10,054,506 - 10,054,506 - Unrestricted 25,407,542 9,756,028 1,806,944 36,970,514 (4,648,623) Total Net Position 52,645,976 43,220,224 9,363,503 105,229,703 (3,647,865) Total Liabilities, Net Position and Deferred Inflows of Resources 125,269,524$ 60,926,676$ 16,085,556$ 202,281,756$ 6,159,653$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 105,229,703$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (2,514,805) Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds 80,818 Net Position per Statement of Net Position 102,795,716$ Water Light Business-Type Activities - Enterprise Funds 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, 2015 Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 21,515,397$ 46,222,264$ 5,782,103$ 73,519,764$ 10,070,110$ Interdepartmental charges 45,136 44,172 - 89,308 - Miscellaneous 13,394 102,884 19,094 135,372 13,123 Lease revenue 14,400 - - 14,400 - Total Operating Revenues 21,588,327 46,369,320 5,801,197 73,758,844 10,083,233 Operating Expenses: Administration and general 6,465,492 6,189,852 1,143,215 13,798,559 7,650,087 Source of supply 3,007,866 28,851,637 - 31,859,503 273,236 Pumping 45,584 - - 45,584 - Transmission/collection 1,654,507 4,018,091 - 5,672,598 - Treatment 438,633 - 517,198 955,831 - Refuse collection - - 3,042,337 3,042,337 - Cost of sales and services 3,209,755 56,636 - 3,266,391 - Claims expense - - - - 802,209 Depreciation expense 3,725,639 1,270,648 485,675 5,481,962 254,284 Total Operating Expenses 18,547,476 40,386,864 5,188,425 64,122,765 8,979,816 Operating Income (Loss)3,040,851 5,982,456 612,772 9,636,079 1,103,417 Nonoperating Revenues (Expenses): Taxes - - 574,179 574,179 - Interest revenue 156,905 197,478 9,930 364,313 7,019 Interest expense (2,695,460) (259,708) (168,563) (3,123,731) - Special franchise fees (359,078) (3,902,002) (53,473) (4,314,553) - Contributions (303,634) - - (303,634) - Gain (loss) on disposal of capital assets - - - - (16,521) Total Nonoperating Revenues (Expenses)(3,201,267) (3,964,232) 362,073 (6,803,426) (9,502) Income (Loss) Before Transfers (160,416) 2,018,224 974,845 2,832,653 1,093,915 Transfers in - - - - 982,174 Transfers out - (95,049) (815,525) (910,574) (677,114) Changes in Net Position (160,416) 1,923,175 159,320 1,922,079 1,398,975 Net Position: Beginning of Year, as previously reported 57,696,506 45,145,743 10,444,258 113,286,507 1,310,849 Restatements (4,890,114) (3,848,694) (1,240,075) (9,978,883) (6,357,689) Beginning of Fiscal Year, as restated 52,806,392 41,297,049 9,204,183 103,307,624 (5,046,840) End of Fiscal Year 52,645,976$ 43,220,224$ 9,363,503$ 105,229,703$ (3,647,865)$ 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 1,922,079$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds 80,818 Changes in Net Position of Business-Type Activities per Statement of Activities 2,002,897$ Water Light See Notes to Financial Statements 25 CITY OF AZUSA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 21,078,590$ 46,357,916$ 5,802,162$ 73,238,668$ 11,325,561$ Cash received from/(paid to) interfund service provided 2,964,782 44,172 - 3,008,954 - Cash paid to suppliers for goods and services (7,928,288) (31,994,509) (3,490,374) (43,413,171) (1,640,559) Cash paid to employees for services (6,470,589) (6,266,229) (1,157,212) (13,894,030) (7,728,442) Net Cash Provided by (Used in) Operating Activities 9,644,495 8,141,350 1,154,576 18,940,421 1,956,560 Cash Flows from Non-Capital Financing Activities: Cash transfers out - (95,049) (815,525) (910,574) (677,114) Cash transfers in - - - - 982,174 Repayment received from other funds 3,878,100 - - 3,878,100 - Repayment made to other funds (303,634) - (458,591) (762,225) (2,600) Net Cash Used in Non-Capital Financing Activities 3,574,466 (95,049) (1,274,116) 2,205,301 302,460 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (1,090,736) (1,092,492) - (2,183,228) (147,905) Principal paid on capital debt (1,735,000) (585,000) (350,000) (2,670,000) - Interest paid on capital debt (2,901,696) (270,736) (168,563) (3,340,995) - Special franchise fees paid (359,078) (3,902,002) (53,473) (4,314,553) - Advance to other funds (4,006,427) 50,000 - (3,956,427) - Advance to Successor Agency (2,616,012) - - (2,616,012) - Sales of capital assets - - 574,179 574,179 - Net Cash Provided by (Used in) Capital and Related Financing Activities (12,708,949) (5,800,230) 2,143 (18,507,036) (147,905) Cash Flows from Investing Activities: Issuance of new loans - 5,494 - 5,494 - Repayment received on loans (3,292) - - (3,292) (2,600) Interest received 156,913 197,489 9,071 363,473 3,874 Net Cash Provided by Investing Activities 153,621 202,983 9,071 365,675 1,274 Net Increase (Decrease) in Cash and Cash Equivalents 663,633 2,449,054 (108,326) 3,004,361 2,112,389 Cash and Cash Equivalents at Beginning of Year 28,536,209 21,193,956 4,551,030 54,281,195 2,299,908 Cash and Cash Equivalents at End of Year 29,199,842$ 23,643,010$ 4,442,704$ 57,285,556$ 4,412,297$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)3,040,851$ 5,982,456$ 612,772$ 9,636,079$ 1,103,417$ Adjustments to reconcile operating income (loss) net cash provided by (used in) operating activities: Depreciation 3,725,639 1,270,648 485,675 5,481,962 254,284 Gain (loss) on sale of capital assets - - - - (16,521) (Increase) decrease in accounts receivable (464,601) 32,768 965 (430,868) 1,315,608 (Increase) decrease in inventories - 13,855 - 13,855 - (Increase) decrease in prepaid expense (4,393) (9,702) 4,424 (9,671) (73,851) Decrease of land held for resale to Successor Agency 2,919,646 - - 2,919,646 - (Increase) decrease in deferred pension related outflows (336,735) (377,676) (87,495) (801,906) (466,910) Increase (decrease) in accounts payable 334,083 334,819 58,520 727,422 254,975 Increase (decrease) in accrued liabilities 14,526 12,286 6,217 33,029 123,223 Increase (decrease) in deposits payable 97,100 592,883 - 689,983 - Increase (decrease) in due to other governments 1,267 - - 1,267 - Increase (decrease) in claims and judgments - - - - (926,220) Increase (decrease) in compensated absences 42,439 (5,176) (8,164) 29,099 27,050 Increase (decrease) in net pension liability (590,257) (599,878) (179,545) (1,369,680) (744,859) Increase (decrease) in deferred pension related inflows 864,930 894,067 261,207 2,020,204 1,106,364 Total Adjustments 6,603,644 2,158,894 541,804 9,304,342 853,143 Net Cash Provided by (Used in) Operating Activities 9,644,495$ 8,141,350$ 1,154,576$ 18,940,421$ 1,956,560$ 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, 2015 Agency Funds Assets: Pooled cash and investments 5,116,110$ 2,989,105$ Receivables: Accounts 11,276 - Taxes 59,703 - Notes and loans - 1,160,987 Accrued interest - 195 Advances to City - 8,208,832 Land held for resale - 31,061,019 Restricted assets: Cash and investments with fiscal agents - 2,319,605 Capital assets: Capital assets, not being depreciated - 410,420 Capital assets, net of accumulated depreciation - 1,231,651 Total Assets 5,187,089$ 47,381,814 Deferred Outflows of Resources: Deferred charge on refunding 310,088 Total Deferred Outflows of Resources 310,088$ Liabilities: Accounts payable 188,985$ 461,621 Accrued liabilities 33,445 - Accrued interest - 1,032,258 Deposits payable 4,944,964 - Due to other governments 19,695 80 Long-term liabilities: Due in one year - 1,525,000 Due in more than one year - 47,012,623 Due to City of Azusa - 11,892,349 Total Liabilities 5,187,089$ 61,923,931 Net Position: Held in trust for other purposes (14,232,029) Total Net Position (14,232,029)$ 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, 2015 Additions: Taxes 4,817,379$ Interest and change in fair value of investments 16,652 Contributions from other funds 303,634 Miscellaneous 3,885 Total Additions 5,141,550 Deductions: Administrative expenses 27,010 Contractual services 115,261 Interest expense 3,250,752 Depreciation expense 82,348 Contributions to other governments 549,579 Total Deductions 4,024,950 Extraordinary gain on City transfers of land held for resale 4,113,065 Changes in Net Position 5,229,665 Net Position - Beginning of the Year (20,676,942) Restatement 1,215,248 Net Position - End of the Year (14,232,029)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 28 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 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, 2015 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, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City reports the following major governmental fund: x 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: x 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. x 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: x Special Revenue Funds account for revenues which are restricted for specific purposes. x 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. x Debt Service Funds account for the accumulation of resources and payment of long-term debt. x 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. x 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. x 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, 2015 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, 2015 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: x 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. x Public Safety includes those activities which involve the protection of people and property. x Community Development includes those activities which involve the enhancing of the general quality of life. x Parks and Recreation includes those activities which involve community park maintenance and recreational activities within the community. x Public Works includes those activities which involve the maintenance and improvement of City streets and roads. x 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 x All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventory costs are recorded as an expense when used. x 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. x 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, 2015 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 two items that qualify for reporting in this category. One is the deferred charge on refunding of long-term debt that is a result from the difference in the carrying value of refunded debt and its acquisition price. This has been presented in the Statements of Net Position. The second item is the deferred outflows relating to the net pension obligation reported in the government-wide statement of net position. These outflows are the results of 34 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions. These amounts are deferred and amortized over the expected average remaining service life time. 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 two items that qualify for reporting in this category. One 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. The second type of deferred inflow of resource relates to the net pension obligation reported in the government-wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on pension plan investments. This amount is deferred and amortized straight-line over a five year period. 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. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resource related to pensions, and pension expense, information about the fiduciary net position of the City of Azusa’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 35 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Fund Equity In the fund financial statements, government funds report the following fund balance classification: Nonspendable Fund Balance The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in a spendable form or (b) legally or contractually required to be maintained intact. The “not spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long term amount of loans and notes receivable. Restricted Fund Balance The restricted fund balance classification includes amounts that reflect constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors (such as through bonded debt reserve funds required pursuant to debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. 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. 36 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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. 37 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) f. Claims and Judgments The City records a liability for litigation, judgments and claims when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. Claims incurred but not reported are recorded as a liability when the liability has been incurred or an asset has been impaired and the amounts can be reasonably determined. This liability is recorded in the internal service fund that accounts for the City's self-insurance activities. g. Cash Equivalents for Statement of Cash Flows For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of change in value because of changes in interest rates. Investments purchased within three months of original maturity are considered to be cash equivalents. Cash and cash equivalents in the accompanying statements include the proprietary funds' share of the cash and investment pool of the City of Azusa. Cash and cash equivalents for proprietary funds are reported in the accompanying financial statements as: Enterprise Internal Service Cash and investments 37,439,287$ 4,412,297$ Restricted: Cash and investments 13 - Cash with fiscal agent 9,791,750 - Cash held for rate stabilization 10,054,506 - Total 57,285,556$ 4,412,297$ 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 ($13,733,455) long-term debt difference is as follows: Long-term debt: Certificates of participation (2,285,000)$ Taxable pension bonds (3,205,000) Deferred premium on bonds and COP (to be amortized over life of debt)(34,622) Successor Agency Loan (8,208,833) Net adjustment to reduce fund balance of total governmental funds to arrive at net position of governmental activities (13,733,455)$ 38 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities. The governmental fund statement of revenues, expenditures and changes in fund balances includes the reconciliation between net changes in fund balances of total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The detail of this $11,846,534 difference is as follows: Principal repayments and amortizations: Certificates of participation 255,000$ Pension bonds 870,000 Developer loans 10,700,656 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.11,846,534$ 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 $100,000 or more must be approved by City Council. Spending control (legal level of control) is established by the amount of expenditures budgeted at the department level. During the year, several supplementary appropriations were necessary. Individual amendments were not material in relation to the original appropriations. 39 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Stewardship, Compliance and Accountability (Continued) b. Deficit Fund Balance The following funds had a deficit fund balance as of June 30, 2015: Nonmajor Funds: Governmental: LACMTA 27$ Community Development Block Grant 5,518 Capital Projects 333 Fiduciary Funds: Private Purpose Trust Fund: Successor Agency of the Former Redevelopment Agency 14,542,117 Internal Service Funds: Consumber Services 2,433,987 Central Services 3,509 IT Services 1,953,401 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, 2015, cash and investments were reported in the accompanying financial statements as follows: Governmental Activities: Cash and investments 17,826,533$ Restricted Cash and investments 2,308,717 Cash with fiscal agents 586,819 Business-type activities: Cash and investments 39,158,491 Restricted Cash and investments 13 Cash with fiscal agents 9,791,750 Cash held for rate stabilization 10,054,506 Fiduciary Funds: Agency Funds: Cash and investments 5,116,110 Private-Purpose Trust: Cash and investments 2,989,105 Restricted Cash with fiscal agents 2,319,605 Total Cash and Investments 90,151,649$ 40 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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, 2015, the carrying amount of the City’s deposits was $6,685,752 and the bank balance was $7,659,921. The $974,169 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: x U.S. Treasury Obligations (bills, notes and bonds) x U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations x Mutual Funds x Commercial Paper x Repurchase Agreements x Certificates of Deposit x Negotiable Certificates of Deposit x Passbook Savings Accounts x Medium Term Corporate Notes x Bank Money Market Accounts x 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, 2015 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, 2015, the City’s investments in Federal Agency securities consisted of investments with Federal Home Loan Bank and Federal Farm Credit Bank. At June 30, 2015, 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, 2015, 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, 2015, 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, 2015, the City has investments of $3,993,350 (5%) with Federal Farm Credit Bank. Investments guaranteed by the U.S. government, investments in mutual funds and external investment pools are excluded from this requirement. 42 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 3: Cash and Investments (Continued) Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that no investment may have a maturity of more than five years without receiving prior City Council approval. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated with bond issues may have a maturity of more than five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2015, the City had the following investments and original maturities: 6 months 6 months 1 to 3 3 to 5 Fair or less to 1 year years years Value Local Agency Investment Fund 28,379,962$ -$ -$ -$ 28,379,962$ Certificates of Deposit 400,262 602,196 13,210,828 16,554,916 30,768,202 Money market mutual funds 1,530,152 - - - 1,530,152 Cash with Fiscal Agents: Money market mutual funds 13,029,891 - - - 13,029,891 Federal agency securities - - 5,988,260 2,998,509 8,986,769 Certificates of Deposit 40,017 241,609 246,517 242,778 770,921 43,380,284$ 843,805$ 19,445,605$ 19,796,203$ 83,465,897$ Remaining Investment Maturities 43 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 4: Capital Assets Capital asset activity for the year ended June 30, 2015, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 1,319,536$ -$ -$ 1,319,536$ Construction-in-progress 473,263 860,040 - 1,333,303 Total Capital Assets Not Being Depreciated 1,792,799 860,040 - 2,652,839 Capital Assets, Being Depreciated: Land improvements 4,423,252 - - 4,423,252 Buildings and structures 12,716,411 - - 12,716,411 Machinery and equipment 8,006,491 398,983 - 8,405,474 Automotive equipment 3,194,624 347,502 (164,062) 3,378,064 Infrastructure 49,322,442 111,000 - 49,433,442 Total Capital Assets Being Depreciated 77,663,220 857,485 (164,062) 78,356,643 Less Accumulated Depreciation: Land improvements 2,971,120 125,094 - 3,096,214 Buildings and structures 5,620,259 299,507 - 5,919,766 Machinery and equipment 6,683,183 303,892 - 6,987,075 Automotive equipment 2,570,920 224,417 (108,409) 2,686,928 Infrastructure 31,651,106 756,138 - 32,407,244 Total Accumulated Depreciation 49,496,588 1,709,048 (108,409) 51,097,227 Total Capital Assets Being Depreciated, Net 28,166,632 (851,563) (55,653) 27,259,416 Governmental Activities Capital Assets, Net 29,959,431$ 8,477$ (55,653)$ 29,912,255$ 44 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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 1,103,150 (1,458,450) 1,180,786 - 825,486 Total Capital Assets Not Being Depreciated 4,092,123 (1,458,450) 1,180,786 - 3,814,459 Capital Assets, Being Depreciated: Land improvements 1,212,318 - - - 1,212,318 Building and structures 22,635,772 - - - 22,635,772 Machinery and equipment 13,566,226 - 63,029 - 13,629,255 Automotive equipment 3,754,324 - - - 3,754,324 Infrastructure 154,019,721 1,458,450 957,984 - 156,436,155 Total Capital Assets Being Depreciated 195,188,361 1,458,450 1,021,013 - 197,667,824 Less Accumulated Depreciation: Land improvements 753,025 - 38,676 - 791,701 Building and structures 9,232,026 - 498,113 - 9,730,139 Machinery and equipment 10,197,191 - 479,743 - 10,676,934 Automotive equipment 3,349,456 - 114,799 - 3,464,255 Infrastructure 48,614,448 - 4,454,099 - 53,068,547 Total Accumulated Depreciation 72,146,146 - 5,585,430 - 77,731,576 Total Capital Assets Being Depreciated, Net 123,042,215 1,458,450 (4,564,417) - 119,936,248 Business-Type Activities Capital Assets, Net 127,134,338$ -$ (3,383,631)$ -$ 123,750,707$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 101,720$ Public safety 113,161 Community development 16,143 Parks and recreation 279,925 Public works 1,047,283 Internal service funds 150,816 Total 1,709,048$ Business-Type Activities: Water 3,725,639$ Light 1,270,648 Sewer/Wastewater 485,675 Internal service funds 103,468 Total 5,585,430$ 45 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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, 2015: Beginning at Ending Due within July 1, 2014 Adjustments Addition Deletion June 30, 2015 one year City Compensated Absences 3,534,747$ -$ 2,204,815$ 2,219,926$ 3,519,636$ 2,210,436$ Net OPEB Liability 10,383,609 - 1,903,493 - 12,287,102 - Advance to the Successor Agency 8,208,833 - - - 8,208,833 - 2008 Taxable pension funding bonds 4,075,000 - - 870,000 3,205,000 965,000 Obligation under developer - agreements 10,700,656 - 334,630 11,035,286 - - 36,902,845 - 4,442,938 14,125,212 27,220,571 3,175,436 Public Financing Authority 2003 Certificates of Participation 2,540,000 - - 255,000 2,285,000 265,000 Internal Service Funds: Compensated Absences 175,515 - 109,651 99,876 185,290 102,851 Claims and Judgments payable 2,356,493 (104,784) * 1,535,057 2,356,493 1,430,273 1,430,273 Total Internal Service 2,532,008 (104,784) 1,644,708 2,456,369 1,615,563 1,533,124 Unamortized Premiums/Discounts Premiums 69,087 - - 23,008 46,079 - Discounts (13,587) - 2,130 - (11,457) - Total Premiums/ Discounts 55,500 - 2,130 23,008 34,622 - Total Governmental Long-term Debt 42,030,353$ (104,784)$ 6,089,776$ 16,859,589$ 31,155,756$ 4,973,560$ *This amount represents the changes in IBNR. 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, 2015, is $8,208,833. 46 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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 $1,175,000 on January 1 each year from 2010 through 2018. The annual principal requirements to amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2015, are as follows: Principal Interest 2015-2016 965,000$ 208,325$ 2016-2017 1,065,000 145,600 2017-2018 1,175,000 76,375 Total 3,205,000$ 430,300$ Taxable Pension Funding Bonds Series 2008 2003 Certificates of Participation On August 7, 2003, the Azusa Public Financing Authority issued the 2003 Lease Revenue Refunding Certificates of Participation in the amount of $4,825,000 to refund the outstanding balance of the 1994 Certificates of Participation. The bonds are subject to optional and mandatory redemption prior to maturity and are payable from certain revenue consisting of certain base rental payments with respect to the lease agreement between the City and the Authority. Debt covenants require that the Authority maintain a reserve account equal to the maximum annual debt service on all outstanding certificates. As of June 30, 2015, 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, 2015, was $2,285,000. The annual requirements to repay the outstanding indebtedness at June 30, including interest, are shown in the schedule below: Principal Interest 2015-2016 265,000$ 91,768$ 2016-2017 275,000 80,968 2017-2018 285,000 69,590 2018-2019 300,000 57,337 2019-2020 315,000 44,071 2020-2024 845,000 18,590 Total 2,285,000$ 362,324$ 2003 Certificates of Participation 47 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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, $178,000 to Price Company Then, balance divided 50% to the former Redevelopment Agency and 50% to Price Company On May 15, 1989, the former Redevelopment Agency entered into an agreement with the City of Azusa to transfer all sales tax revenues received by the former Redevelopment Agency under the Price Company developer agreement to the City, except that required for repayment of the note or other required purposes. Due to the dissolution of the former Redevelopment Agency, the City has elected to continue this agreement under the City of Azusa. Payments were to continue for a period of 25 years through October 31, 2014, or until all accrued interest and principal are paid in full, whichever occurs first. In the event that the entire interest and principal not been repaid as of October 31, 2014, the unpaid balance was to be forgiven. The outstanding principal and matured unpaid interest balance was written off during the year ended June 30, 2015. 48 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Long-Term Debt (Continued) b. Long-Term Debt – Business-Type Activities The following is a summary of changes in long-term debt for the year ended June 30, 2015: Beginning at Ending Due within July 1, 2014 Addition Deletion June 30, 2015 one year Water Fund: Compensated Absences 429,915$ 337,663$ 295,224$ 472,354$ 324,367$ 2006 Water Revenue Bonds 53,315,000 - 1,045,000 52,270,000 1,090,000 2012 Water Refunding Bonds, Series A 8,045,000 - 690,000 7,355,000 710,000 Total Water Fund 61,789,915 337,663 2,030,224 60,097,354 2,124,367 Light Fund: Compensated Absences 540,115 362,290 367,466 534,939 363,945 2003 Certificates of participation, Series B and C 1,985,000 - 585,000 1,400,000 620,000 2012 Electric Refunding Bonds, Series B 5,820,000 - - 5,820,000 - Total Light Fund 8,345,115 362,290 952,466 7,754,939 983,945 Sewer/Wastewater Fund: Compensated Absences 86,673 79,574 87,738 78,509 78,509 2011 Sewer Installment, Series A 1,225,000 - 160,000 1,065,000 165,000 2011 Sewer Installment, Series B 3,855,000 - 190,000 3,665,000 200,000 Total Sewer/Wastewater Fund 5,166,673 79,574 437,738 4,808,509 443,509 Internal Service Funds: Compensated Absences 266,716 245,253 227,978 283,991 242,744 Total Internal Service 266,716 245,253 227,978 283,991 242,744 Total Business-Type Funds 75,568,419$ 1,024,780$ 3,648,406$ 72,944,793 3,794,565$ Unamortized bond premiums 3,700,121 76,644,914$ 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, 2015 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 $13,230,000 and interest ranges from 3.920% to 4.380%. The annual requirements to amortize the outstanding bonds as of June 30, 2015, including interest are as follows: Principal Interest 2016 1,090,000$ 2,555,738$ 2017 1,145,000 2,504,313 2018 1,200,000 2,445,688 2019 1,265,000 2,384,063 2020 1,330,000 2,319,188 2021-2025 7,735,000 10,507,438 2026-2030 9,795,000 8,443,719 2031-2035 12,565,000 5,669,375 2036-2040 16,145,000 2,098,625 Totals 52,270,000$ 38,928,147$ 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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. 50 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Long-Term Debt (Continued) The annual requirements to amortize the outstanding bonds as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 710,000$ 282,600$ 2016-2017 735,000 260,925 2017-2018 755,000 238,575 2018-2019 780,000 211,650 2019-2020 810,000 182,975 2020-2025 3,565,000 362,450 Totals 7,355,000$ 1,539,175$ 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, 2015, 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, 2015, was $1,400,000. The annual requirements to amortize the outstanding certificates of participation as of June 30, 2015, including interest, are as follows: Principal Interest 2015-2016 620,000$ 60,713$ 2016-2017 650,000 25,344 2017-2018 130,000 3,621 Totals 1,400,000$ 89,678$ Electric - Certificates of Participation, Series C 51 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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 $582,000. As of June 30, 2015, the reserve requirement was fully funded. The annual requirements to amortize the outstanding bonds as of June 30, 2015, including interest are as follows: Principal Interest 2016 -$ 175,569$ 2017 - 175,569 2018 650,000 169,069 2019 795,000 150,644 2020 820,000 126,419 2021-2025 3,555,000 223,422 Totals 5,820,000$ 1,020,692$ 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 $505,000. Interest rates on the Series B installments are 3.600%. 52 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Long-Term Debt (Continued) The annual requirements to amortize the outstanding installment agreements as of June 30, 2015, including interest are as follows: Principal Interest Principal Interest 2015 - 2016 165,000$ 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 2019-2020 185,000 8,193 230,000 97,740 2020-2025 190,000 2,755 2,095,000 299,070 2025-2030 - - 505,000 9,090 Totals $1,065,000 $95,194 $3,665,000 $874,710 2011 Sewer Installment Series A 2011 Sewer Installment Series B Note 6: Pension Plans 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. Additionally, 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 and also contributes to the PARS Retirement Enhancement Plan. The different plans’ provisions, descriptions and benefits are described below. a. Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan I. General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City of Azusa’s Miscellaneous (all other than police and fire) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan is established by State statute and City resolution. 53 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2015, are summarized as follows: Miscellaneous Classic Miscellaneous PEPRA Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 2% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of eligible compensation 1.4% - 2%, 50 yrs - 55+ yrs, respectively 1% - 2%, 50 yrs - 62 yrs, respectively Required employee contribution rates 7.000%6.750% Required employer contribution rates 13.645%13.645% Miscellaneous agent plans Employees Covered – At June 30, 2015, the following employees were covered by the benefits for each Plan: Miscellaneous Plan Inactive employees or beneficiaries currently receiving benefits 795 Inactive employees entitled to but not yet receiving benefits 267 Active employees 234 1,296 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 54 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) II. Net Pension Liability The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability as show below. Actuarial Assumptions – The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Discount Rate 7.50% Inflation 2.75% Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter Actuarial Assumptions (1) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can found on the CalPERS website. Discount Rate – The discount rate used to measure the total pension liability was 7.50% for the Miscellaneous Agent Multiple Employer Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. 55 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as we have changed our methodology. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 47.00%5.25%5.71% Global Fixed Income 19.00 0.99 2.43 Inflation Sensitive 6.00 0.45 3.36 Private Equity 12.00 6.83 6.95 Real Estate 11.00 4.50 5.13 Infrastructure and Forestland 3.00 4.50 5.09 Liquidity 2.00 (0.55)(1.05) (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 56 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) III. Changes in the Net Pension Liability The changes in the Net Pension Liability for the Miscellaneous Plan is detailed below: Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance at: 6/30/2013 (Valuation Date) (1)116,677,935$ 86,622,350$ 30,055,585$ Changes Recognized for the Measurement Period: Service Cost 2,375,239 - 2,375,239 Interest on the Total Pension Liability 8,658,209 - 8,658,209 Contribution from the Employer - 2,434,002 (2,434,002) Contributions from Employees - 1,029,164 (1,029,164) Net Investment Income (2)- 14,908,401 (14,908,401) Benefit Payments including Refunds of Employee Contributions (4,845,540) (4,845,540) - Net Changes During 2013-14 6,187,908 13,526,027 (7,338,119) Balance at: 6/30/2014 (Measurement Date) (1)122,865,843$ 100,148,377$ 22,717,466$ Increase (Decrease) (1) The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may differ from the plan assets reported in the funding actuarial valuation report. (2) Net of administrative expenses. Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage lower or 1-percentage point higher than the current rate: Discount Rate - 1% (6.50%) Current Discount Rate (7.5%) Discount Rate +1% (8.5%) Plan's Net Pension Liability/(Assets)40,057,987$ 22,717,466$ 9,145,857$ Pension Plan Fiduciary Net Position – Detailed information about the Plan’s net position is available in the separately issued CalPERS financial reports. 57 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) IV. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2015, the City recognized pension expense of $1,895,352. At June 30, 2015, the Local Government reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 2,461,163$ -$ Net Difference between Projected and Actual Earnings on Pension Plan Investments - 6,799,469 Total 2,461,163$ 6,799,469$ $2,461,163 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period ended June 30: Deferred Outflows/(Inflows) of Resources 2016 (1,699,867)$ 2017 (1,699,867) 2018 (1,699,867) 2019 (1,699,868) b. Safety Cost-Sharing Multiple-Employer Defined Benefit Pension Plan I. General Information about the Safety Pension Plans Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each Plan are applied as specified by the Public Employees’ Retirement Law. 58 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) The Plans’ provisions and benefits in effect at June 30, 2015, are summarized as follows: Safety Classic Safety PEPRA Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of eligible compensation 3.00% 2.70% Required employee contribution rates 9.000% 12.25% Required employer contribution rates 31.925% 12.25% Safety Cost-Sharing Plans Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute th1e difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2015, the contributions recognized as a reduction to the net pension liability for each Plan were as follows: Safety Plans Contributions - employer 2,074,024 Contributions - employee (paid by employer) 320,986 2,395,010 59 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) II. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2015, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Safety Classic Plan of $19,449,591. The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014 was as follows: Safety Classic Proportion - June 30, 2013 0.44347% Proportion - June 30, 2014 0.42717% Change - Increase (Decrease)-0.01630% For the year ended June 30, 2015, the City recognized a total pension expense of $1,833,913 for all safety plans. At June 30, 2015, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 2,475,434$ -$ Net Difference between Projected and Actual Earnings on Pension Plan Investments - 5,872,474 Adjustment due to Difference in Proportions 146,439 - Adjustment due to Difference in Proportions contribution - 17,754 Total 2,621,873$ 5,890,228$ $2,475,434 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported a deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period ended June 30: Deferred Outflows/(Inflows) of Resources 2016 (1,420,492)$ 2017 (1,420,492) 2018 (1,430,950) 2019 (1,471,855) 60 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) Actuarial Assumptions and Discount Rate The same actuarial assumptions and discount rates are used in the Agent Miscellaneous and Cost-Sharing Safety Plans. Refer to assumptions detailed in the Agent Miscellaneous description. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate: Safety Plans Net Pension Liability Discount Rate - 1% 6.50% Current Rate - 1% 7.50% Discount Rate + 1% 8.50% Safety Classic 33,470,228$ 19,449,591$ 7,897,192$ Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. c. Defined Contribution Pension Plan The City of Azusa contributes to the 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, 2015, the covered payroll for employees in the plan was $610,256. Total payroll for the City was $28,660,645. 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, 2015, the employer and the employees each contributed an amount equal to $45,769. Under this plan, normal retirement age is 60 years of age. Plan assets are primarily invested in money market funds. d. 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 plans are 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: 61 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) Covered Employer Employee Positions Contribution Contribution IBEW 5.44%2.00% SEIU 3.72%4.00% AMMA 9.97%2.50% Executive Management 14.00%0.00% Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined by an independent pension actuary using information furnished by the City and by PARS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2015 (the measurement date), the employer’s contribution rate is 17.04% of annual payroll, and no contributions were made by the employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the City to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution. Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2015 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2014 total pension liability. The June 30, 2014 and the June 30, 2015 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Discount Rate 7.50% Inflation 3.00% Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.50% Cost of Living Adjustments 2.00% Mortality Consistent with non-industrial rates used to value the Miscellaneous CalPERS Pension Plan Retirement Retirement rates of 20% per year for ages 55 to 69 and 100% at ages 70 and up Maximum Benefits and Salary Final compensation is subject to IRC 401(a)(17) limitations Beneficiaries 85% of participants are assumed to have an eligible spouse or domestic partner. Beneficiaries are assumed to be the same age as partici pant. Actuarial Assumptions 62 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) Discount Rate The plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per actuarial investment consulting practice as of January 1, 2015. The following assumptions detail out long-term expected rate of return for each PARS benefit plan: SEIU Bargaining Unit Asset Class Index Target Allocation Long-Term Expected Arithmetic Real Rate of Return Long-Term Expected Geometric Real Rate of Return Cash BofA Merril Lynch 90-Day T-Bills 5.14% 0.53% 0.53% Core Fixed Income Barclays Aggregate 38.55% 2.03% 1.90% Broad US Equities Russell 3000 40.61% 5.64% 4.25% Developed Foreign Equities MSCI EAFE 12.08% 6.31% 4.58% Emerging Market Equities MSCI Emerging Markets 3.62% 8.56% 5.11% Assumed Inflation - Mean 2.76% 2.74% Assumed Inflation - Standard Deviation 1.85% 1.85% Portfolio Real Mean Return 4.17% 3.75% Portfolio Nominal Mean Return 6.93% 6.50% Portfolio Standard Deviation 9.85% Long-Term Expected Rate of Return 7.00% 63 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) AMMA Bargaining Unit Asset Class Index Target Allocation Long-Term Expected Arithmetic Real Rate of Return Long-Term Expected Geometric Real Rate of Return Cash BofA Merril Lynch 90-Day T-Bills 4.62% 0.53% 0.53% Core Fixed Income Barclays Aggregate 38.76% 2.03% 1.90% Broad US Equities Russell 3000 40.83% 5.64% 4.25% Developed Foreign Equities MSCI EAFE 12.15% 6.31% 4.58% Emerging Market Equities MSCI Emerging Markets 3.64% 8.56% 5.11% Assumed Inflation - Mean 2.76% 2.74% Assumed Inflation - Standard Deviation 1.85% 1.85% Portfolio Real Mean Return 4.19% 3.76% Portfolio Nominal Mean Return 6.95% 6.51% Portfolio Standard Deviation 9.90% Long-Term Expected Rate of Return 7.00% Executive/Contract Bargaining Group Asset Class Index Target Allocation Long-Term Expected Arithmetic Real Rate of Return Long-Term Expected Geometric Real Rate of Return Cash BofA Merril Lynch 90-Day T-Bills 3.83% 0.53% 0.53% Core Fixed Income Barclays Aggregate 39.08% 2.03% 1.90% Broad US Equities Russell 3000 41.17% 5.64% 4.25% Developed Foreign Equities MSCI EAFE 12.25% 6.31% 4.58% Emerging Market Equities MSCI Emerging Markets 3.67% 8.56% 5.11% Assumed Inflation - Mean 2.76% 2.74% Assumed Inflation - Standard Deviation 1.85% 1.85% Portfolio Real Mean Return 4.22% 3.79% Portfolio Nominal Mean Return 6.98% 6.54% Portfolio Standard Deviation 9.99% Long-Term Expected Rate of Return 7.00% 64 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) IBEW Employees Asset Class Index Target Allocation Long-Term Expected Arithmetic Real Rate of Return Long-Term Expected Geometric Real Rate of Return Cash BofA Merril Lynch 90-Day T-Bills 5.36% 0.53% 0.53% Core Fixed Income Barclays Aggregate 38.46% 2.03% 1.90% Broad US Equities Russell 3000 40.51% 5.64% 4.25% Developed Foreign Equities MSCI EAFE 12.06% 6.31% 4.58% Emerging Market Equities MSCI Emerging Markets 3.61% 8.56% 5.11% Assumed Inflation - Mean 2.76% 2.74% Assumed Inflation - Standard Deviation 1.85% 1.85% Portfolio Real Mean Return 4.16% 3.74% Portfolio Nominal Mean Return 6.93% 6.49% Portfolio Standard Deviation 9.83% Long-Term Expected Rate of Return 7.00% A blended discount rate is generally required to be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate will often require that the actuary perform complex projects of future benefit payments and asset values. Alternative evaluations of projected solvency are allowed, if such evaluation can reliably be made. The following tables show the changes in net pension liability recognized over the measurement period for all the PARS plans. SEIU Bargaining Group Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2014 448,297$ 259,568$ 188,729$ Changes for the year: Service Cost 18,174 - 18,174 Interest on the Total Pension Liability 32,199 - 32,199 Benefit Payments (13,203) (13,203) - Employer Contributions - 12,890 (12,890) Member Contributions - 25,312 (25,312) Net Investment Income - 7,232 (7,232) Administrative Expenses - (1,510) 1,510 Balance as of June 30, 2015 485,467$ 290,289$ 195,178$ Increase (Decrease) 65 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) AMMA Bargaining Group Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2014 2,898,784$ 1,766,745$ 1,132,039$ Changes for the year: Service Cost 102,116 - 102,116 Interest on the Total Pension Liability 207,196 - 207,196 Benefit Payments (83,368) (83,368) - Employer Contributions - 138,866 (138,866) Member Contributions - 46,205 (46,205) Net Investment Income - 47,672 (47,672) Administrative Expenses - (8,240) 8,240 Balance as of June 30, 2015 3,124,728$ 1,907,880$ 1,216,848$ Increase (Decrease) Executive/Contract Bargaining Group Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2014 2,580,027$ 1,021,390$ 1,558,637$ Changes for the year: Service Cost 176,286 - 176,286 Benefit Payments (125,424) (125,424) - Employer Contributions - 78,751 (78,751) Net Investment Income - 26,218 (26,218) Administrative Expenses - (5,569) 5,569 Balance as of June 30, 2015 2,630,889$ 995,366$ 1,635,523$ Increase (Decrease) IBEW Employees Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2014 2,782,999$ 1,499,095$ 1,283,904$ Changes for the year: Service Cost 107,529 - 107,529 Interest on the Total Pension Liability 199,129 - 199,129 Benefit Payments (93,243) (93,243) - Employer Contributions - 153,146 (153,146) Member Contributions - 82,044 (82,044) Net Investment Income - 41,194 (41,194) Administrative Expenses - (7,492) 7,492 Balance as of June 30, 2015 2,996,414$ 1,674,744$ 1,321,670$ Increase (Decrease) 66 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) TOTAL PARS PLANS Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2014 8,710,107$ 4,546,798$ 4,163,309$ Changes for the year: Service Cost 227,819 - 227,819 Interest on the Total Pension Liability 614,810 - 614,810 Benefit Payments (315,238) (315,238) - Employer Contributions - 383,653 (383,653) Member Contributions - 153,561 (153,561) Net Investment Income - 122,316 (122,316) Administrative Expenses - (22,811) 22,811 Balance as of June 30, 2015 9,237,498$ 4,868,279$ 4,369,219$ Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City of Azusa, calculated using the discount rate of 7.00%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1% point lower (6.00%) or 1% point higher (8.00%) than the current rate. Discount Rate Current Discount Rate - 1%Discount Rate + 1% Net Pension Liability 6.00%7.00%8.00% SEIU Bargaining Group 260,326$ 195,178$ 140,486$ AMMA Bargaining Group 1,570,747 1,216,848 833,402 Executive/Contract Bargaining Group 1,958,419 1,635,523 1,366,728 IBEW Employees 1,711,345 1,321,670 992,545 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period, July 1, 2014, the net pension liability was $4,163,309. For the measurement period ending June 30, 2015, the City incurred a pension expense of $427,312 for all the PARS Plan. As of the measurement date, June 30, 2015, the net pension liability is $4,369,219. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the City. 67 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Pension Plans (Continued) As of June 30, 2015, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Net difference between projected and actual earnings 162,251$ Adjustments due to difference in proportion contribution 37,171 Total $ 199,422 The amount above reflects the net difference between the projected and actual earnings of the pension plan investment. Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Year Ended June 30, Deferred Outflows of Resources 2016 50,344$ 2017 50,344 2018 50,344 2019 48,390 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 $563,455 was made during the 2014-2015 fiscal year and was not included in the June 30, 2015, actuarial study. The purpose of the contribution was to pay current year premiums for retirees. 68 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Post-Employment Benefits (Continued) As a result, the City calculated and recorded a Net OPEB Liability, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC)2,830,000$ Interest on Net OPEB Obligation 102,538 Adjustment to ARC (465,590) Annual OPEB Cost 2,466,948 Contributions made (563,455) (Decrease) increase in Net OPEB obligation 1,903,493 Net OPEB obligation (asset) June 30, 2013 10,383,609 Net OPEB obligation (asset) June 30, 2014 12,287,102$ 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 2014-2015, the City’s annual OPEB cost (expense) of $2,466,948 was less than the ARC. The last three year trend information on the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented below: Fiscal Year End Annual OPEB Cost Actual Contribution (Net of Adjustments) Percentage of Annual OPEB Cost Contributed Net OPEB Obligation (Asset) 6/30/2013 1,595,294$ 584,099$ 37% 8,372,606$ 6/30/2014 2,596,922 585,919 23% 10,383,609 6/30/2015 2,466,948 563,455 23% 12,287,102 69 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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, 2015, 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 $5,000,000. 70 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Insurance (Continued) For the past three years, no settlements or claims payments have exceeded the amount of the applicable insurance coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: Claims Incurred Beginning and Changes Less Claim Ending Balance in Estimates Payments Balance 2013-2014 2,125,263$ 816,616$ (585,386)$ 2,356,493$ 2014-2015 2,356,493 (419,136) (507,084) 1,430,273 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, 2015, was as follows: Due To/From Other Funds Nonmajor Governmental Internal Funds Service Total Due from other funds: Water 15,410$ 34,216$ 49,626$ Due to other funds The due from other funds amounts listed above consisted of short-term loans to cover negative cash. Advances To/From Other Funds Water Light Funds Fund Fund Total Advances From Other Funds: General 4,006,427$ 181,000$ 4,187,427$ Nonmajor Governmental Funds - 750,000 750,000 Total 4,006,427$ 931,000$ 4,937,427$ Advances To Other Funds: The Light Fund advanced $181,000 to the General Fund and $750,000 to the Capital Projects Fund for various project expenditures. 71 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 9: Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers Nonmajor General Governmental Internal Transfer Out: Fund Funds Service Funds Total General Fund -$ 4,392,652$ 852,394$ 5,245,046$ Nonmajor Governmental Funds 304,678 19,391 120 324,189 Light Fund - 95,049 - 95,049 Nonmajor Proprietary Funds 685,865 - 129,660 815,525 Internal Service Funds 614,004 63,110 - 677,114 Total 1,604,547$ 4,570,202$ 982,174$ 7,156,923$ 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. Note 10: Fund Equity and Net Position Restatements Governmental Funds General Grants and Seizure Fund Balance as previously reported, June 30, 2014 20,417,948$ 1,056,517$ Reclass of prior period expenses related to 1% Cable Grant (190,445) - Reclass of prior period activity between funds 25,963 (25,963) Adjust for revenues related to prior years - 201,339 Fund Balance, as restated, July 1, 2014 20,253,466$ 1,231,893$ Enterprise Funds Water Light Sewer/ Wastewater Net position as previously reported, June 30, 2014 57,696,506$ 45,145,743$ 10,304,489$ Effect of retroactive application - GASB 68 (4,370,660) (3,848,694) (1,240,075) Reclass of prior period expense paid in April 2015 (519,454) - - Net position, as restated, July 1, 2014 52,806,392$ 41,297,049$ 9,064,414$ Internal Service Funds Consumer Services Self Insurance Equipment Replacement IT Services Net position as previously reported, June 30, 2014 1,559,009$ (957,047)$ 744,673$ (32,276)$ Effect of retroactive application - GASB 68 (4,073,814) (81,579) - (1,927,048) Restatement of improper capital asset recording - - (275,248) - Net position, as restated, July 1, 2014 (2,514,805)$ (1,038,626)$ 469,425$ (1,959,324)$ 72 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: Fund Balance and Net Position Restatements (Continued) As discussed in Note 1 to the financial statements, the City adopted Statement of Governmental Accounting Standards Board No. 68, Accounting and financial Reporting for Pensions—an Amendment of GASB Statement No. 27. The estimated net pension liability has been determined by CalPERS actuarial using benefit provisions and assumptions described in Note 6. As a result, there has been a total restatement of $62,664,729 for the City of Azusa relating to GASB 68 (PERS and PARS net pension liabilities); governmental activities $49,131,486 and Water Fund $4,370,660, Light Fund $3,848,694, Sewer/Wastewater Fund $1,240,075, and Consumer Services $4,073,814 included as part of business-type activities. Government-wide Governmental Activities Business-type Activities Net position as previously reported, June 30, 2014 29,395,743$ 114,485,516$ General fund restatements (164,482) - Grants and seizure fund restatements 175,376 - Equipment Replacement fund restatement (275,248) - Water fund restatement to reclass prior period expense - (519,454) Effect of retroactive application - GASB 68 (49,131,486) (13,533,243) Restatement of Net Position (49,395,840) (14,052,697) Net position, as restated, July 1, 2014 (20,000,097)$ 100,432,819$ 73 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 11: Grants and Seizure Fund The Grants and Seizure special revenue fund include the following items in its fund balance: Grants & Seizures (8,942)$ PEG Cable 175,376 Jack Williams Memorial 600 Grants & Seizures-Police 17 Asset Seizure Federal - Department of Justice 155,578 Asset Seizure County 24,495 Asset Seizure Drug and Gang 1,572 Office of Traffic Safety 2,762 Asset Seizure Federal - Department of Treasury 88 Inmate Welfare Fund 5,712 Workforce Invest (19,850) 2014 JAG Grant (11,673) OTS-SEL Traffic Enforcement (8,784) Cities & Specified Excess Funding (21,246) AQMD Tree Planting 3,131 Sr Cntr Cyn City Grant 4,241 Senior Restricted Donations 98 Public Library Grant 247,127 Library Restricted Donations 63,623 Gates Foundation 497 Broadband Grant (Lib)7,556 Family Place Grant 1,926 Book Clubs 467 Youth Programs 689 Summer Reading 3,481 Special Programs 75 General Plan Surcharge 609,256 Metro TOD Planning Grant (83,878) AB29X Meters 86,607 Oil Block Grant 6,635 Beverage Container Recycling 44,332 Technology Grant 60,666 Safe Routes to Schools Grant (51,257) CIP-Recreation Grants (269,879) Rehab of Zacatecas Park 516 CIP-AZ Intermododal Transit (26,923) LSTA-Inspired Citizens (5,071) ABC Grant (3,928) Total 995,692$ 74 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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, 2015, is as follows: Assets: Current assets 3,078,945$ Restricted assets 1,453,852 Capital assets 10,832,707 Total assets 15,365,504 Deferred Outflows of Resources: Deferred pension related items 87,495 Total Deferred Outflows of Resources 87,495 Liabilities: Current liabilities 543,467 Noncurrent liabilities 5,425,530 Total liabilities 5,968,997 Deferred Inflows of Resources: Deferred pension related items 261,207 Total Deferred Inflows of Resources 261,207 Net position: Net Investment in capital assets 7,556,559 Unrestricted 1,666,236 Total net position 9,222,795$ Condensed Statement of Net Position 75 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Segments of Enterprise Activities (Continued) Sewer charges 2,649,440$ Depreciation expense (485,676) Other operating expenses (1,660,413) Operating income 503,351 Nonoperating revenues (expenses): Investment earnings 9,930 Interest expense (168,562) Special franchise fees (53,473) Transfers out (132,865) Change in net Position 158,381 Beginning net position, as originally reported 10,304,489 Restatement (1,240,075) Ending net position 9,222,795$ Condensed Statement of Revenues, Expenses and Changes in Net Position Net cash provided by (used in): Operating activities 1,013,599$ Noncapital financing activities (591,456) Capital and related financing activities (572,036) Investing activities 9,071 Net decrease in cash (140,822) Beginning cash and cash equivalents 4,365,010 Ending cash and cash equivalents 4,224,188$ Condensed Statement of Cash Flows 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, 2015, 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 76 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 13: Summary Financial Data for Joint Ventures (Continued) 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 $10,054,506 (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. 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. 77 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. 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 2,989,105$ Restricted cash and Investments pooled with the City 2,319,605 Total Cash and Investments 5,308,710$ b. Capital Assets An analysis of capital assets as of June 30, 2015, 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 58,400 - 804,936 Infrastructure 85,698 23,948 - 109,646 Total Accumulated Depreciation 832,234 82,348 - 914,582 Total Capital Assets being depreciated, net 1,313,999 (82,348) - 1,231,651 Capital Assets 1,724,419$ (82,348)$ -$ 1,642,071$ Balance July 1, 2014 Balance June 30, 2015 78 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2015, follows: Balance July 1, 2014 Additions* Repayments Balance June 30, 2015 Due Within One Year Fiduciary Funds: 2003 Refunding TABs 6,870,000$ -$ (6,870,000)$ -$ -$ 2005 TABS, Series A 9,811,409 108,319 * - 9,919,728 - 2007 TABs, Series A 13,400,000 - (480,000) 12,920,000 505,000 2007 TABs, Series B 4,255,000 - (105,000) 4,150,000 110,000 2008 TABs, Series A 6,305,000 - (6,305,000) - - 2008 TABs, Series B 10,710,000 - (145,000) 10,565,000 155,000 2014 Refunding TAB - 10,470,000 - 10,470,000 755,000 Total Fiduciary Funds $ 51,351,409 $ 10,578,319 $ (13,905,000) 48,024,728 $ 1,525,000 Unamortized Premiums (Discounts) 512,895 Total Long-term Debt 48,537,623$ *Addition of $108,319 related to accreted interest The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $81,755,129, with annual debt service requirements as indicated below. For the current year, the total property tax revenue (net of pass through payments prior to the dissolution of the former RDA) recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $4,817,379, and the debt service obligation on the bonds was $4,220,963. 79 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Tax Allocation Bonds Payable Tax Allocation Bonds 2003 Tax Allocation Refunding Bonds, Series A The Azusa Redevelopment Agency issued $11,580,000 Merged Project Area Tax Allocation Refunding Bonds, 2003 Series A, dated December 1, 2003 to refund the 1994 Series A Merged Project Area Tax Allocation Bonds. Principal payments ranging from $425,000 to $1,235,000 are due annually on August 1 beginning in the year 2004 through the year 2023, interest rates ranging from 3.00% to 4.60% per annum are due and payable on February 1 and August 1 and are secured by tax increment revenues. Debt service payments on the bonds are payable from pledged tax increment revenues. This bond was refunded during the current year with the issuance of the 2014 Refunding Tax Allocation Bonds. 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, 2015, was $9,919,728. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 -$ 349,425$ 2016-2017 - 349,425 2017-2018 - 349,425 2018-2019 - 349,425 2019-2020 - 349,425 2021-2025 1,023,994 1,747,125 2026-2030 4,135,734 2,104,077 2031-2034 4,760,000 2,491,464 Totals 9,919,728$ 8,089,791$ Refunding Bonds 2005 Tax Allocation 80 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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, 2015, was $12,920,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 505,000$ 767,084$ 2016-2017 535,000 737,106 2017-2018 565,000 705,399 2018-2019 605,000 671,114 2019-2020 635,000 634,224 2021-2025 2,940,000 2,582,868 2026-2030 2,025,000 1,898,044 2031-2035 3,485,000 1,010,906 2036-2039 1,625,000 49,969 Totals 12,920,000$ 9,056,714$ 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, 2015, was $4,150,000. 81 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 110,000$ 212,513$ 2016-2017 110,000 207,439 2017-2018 120,000 202,075 2018-2019 125,000 196,286 2019-2020 130,000 190,198 2021-2025 745,000 844,288 2026-2030 970,000 620,734 2031-2035 1,245,000 329,263 2036-2039 595,000 31,933 Totals 4,150,000$ 2,834,729$ Bonds, Series B 2007 Tax Allocation 2008 Tax Allocation Bonds, Series A The Azusa Redevelopment Agency issued $6,715,000 Series A Merged Project Area Tax Allocation Bonds, dated December 18, 2008 to finance redevelopment projects, satisfy reserve requirements, and pay costs incurred with the bond issuance. The bonds consist of serial bonds due in annual installments ranging from $70,000 to $140,000 maturing on August 1, 2009 through August 1, 2018, and term bonds of $1,850,000 due August 1, 2023 and $1,815,000 due August 1, 2028 and $2,045,000 due August 1, 2034. Serial bonds have interest rates ranging from 4.5% through 6.75%. The term bonds carry interest rates of 7.5% and 8.2%. Debt service payments on the bonds are payable from pledged tax increment revenues. This bond was refunded in the current year with the issuance of the 2014 Tax Allocation Refunding Bond. 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, 2015, was $10,565,000. 82 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 155,000$ 724,689$ 2016-2017 160,000 715,433 2017-2018 170,000 705,320 2018-2019 185,000 694,088 2019-2020 195,000 681,830 2021-2025 1,280,000 3,194,571 2026-2030 3,000,000 2,450,700 2031-2035 3,765,000 1,245,475 2036-2039 1,655,000 127,575 Totals 10,565,000$ 10,539,681$ Bonds, Series B 2008 Tax Allocation 2014 Subordinate Tax Allocation Refunding Bonds, Series A The Azusa Redevelopment Agency issued $10,470,000 of Subordinate Tax Allocation Refunding Bonds, Series A, dated September 30, 2014. Proceeds of the bonds were to provide funds to refinance outstanding bonds of the Successor Agency, satisfy the Reserve Requirement for the bond, and pay costs incurred in connection with the issuance, sale and delivery of the Bonds. The bonds are due in annual installments ranging from $180,000 to $1,900,000 maturing on August 1, 2015 through August 1, 2034. The bonds carry interest rates of 2.00% and 5.00%. The outstanding principal balance at June 30, 2015, was $10,470,000. The economic gain on refunding was $2,288,197. The difference in cash flow is $2,075,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2015, including interest are as follows: Principal Interest 2015-2016 755,000$ 428,094$ 2016-2017 690,000 410,194 2017-2018 705,000 385,744 2018-2019 730,000 353,394 2019-2020 780,000 315,644 2021-2025 4,660,000 920,219 2026-2030 1,250,000 291,066 2031-2035 900,000 105,131 Totals 10,470,000$ 3,209,486$ Bonds, Series A 2014 Tax Allocation Refunding 83 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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 8. e. Extraordinary Item The City was required to transfer land held for resale to the Successor Agency as part of the dissolution of the former redevelopment activities. The City had purchased the property but was subsequently ordered by the California State Controller Office to return the properties. f. Restatement of Net Position The Successor Agency net position has been restated by $1,215,248 in order to correct the accrual of interest on long-term debt. g. Subsequent Events On September 30, 2015, the Successor Agency to the Redevelopment Agency of the City of Azusa issued $30,530,000 of Subordinate Tax Allocation Refunding Bonds to provide funds to refinance outstanding bonds of the Successor Agency. 84 REQUIRED SUPPLEMENTARY INFORMATION 85 CITY OF AZUSA AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Total Pension Liability Service cost 2,375,239$ Interest on total pension liability 8,658,209 Benefit payments, including refunds of employee contributions (4,845,540) Net change in total pension liability 6,187,908 Total pension liability - beginning 116,677,935 Total pension liability - ending (a)122,865,843$ Plan Fiduciary Net Position Contributions - employer 2,434,002$ Contributions - employee 1,029,164 Net investment income 14,908,401 Benefit payments (4,845,540) Net change in plan fiduciary net position 13,526,027 Plan fiduciary net position - beginning 86,622,350 Plan fiduciary net position - ending (b)100,148,377$ Net pension liability - ending (a)-(b)22,717,466$ Plan fiduciary net position as a percentage of the total pension liability 81.51% Covered-employee payroll 14,720,772$ Net pension liability as a percentage of covered-employee payroll 154.32% Notes to Schedule: Changes of Assumptions: None. (1) Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Benefit Changes: None. 86 CITY OF AZUSA AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 MISCELLANEOUS CLASSIC: Actuarially Determined Contribution 2,461,163$ Contribution in Relation to the Actuarially Determined Contributions (2,461,163) Contribution Deficiency (Excess)-$ Covered-Employee Payroll 14,429,034$ Contributions as a Percentage of Covered-Employee Payroll 17.06% Note to Schedule: Valuation Date:June 30, 2012 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method Level Percent of Payroll Remaining amortization period Assets valuation method 15 Year Smoothed Market Inflation 2.75% Salary Increases 3.00% Investment rate of return Retirement age Mortality RP-2000 Heath Annuitant Mortality Table (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 29 Years as of the Valuation Date 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. 87 CITY OF AZUSA COST-SHARING MULTIPLE EMPLOYER SAFETY PLANS SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 SAFETY CLASSIC: Proportion of the Net Pension Liability 0.31257% Proportionate Share of the Net Pension Liability 19,449,591$ Covered-Employee Payroll 6,343,000$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll 306.63% Plan Fiduciary Net Position 85,223,017$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 81.42% Notes to Schedule: Changes of Assumptions: None. Benefit Changes: None. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 88 CITY OF AZUSA COST-SHARING MULTIPLE EMPLOYER SAFETY PLANS SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 SAFETY CLASSIC: Actuarially Determined Contribution 2,475,434$ Contribution in Relation to the Actuarially Determined Contributions (2,475,434) Contribution Deficiency (Excess)-$ Covered-Employee Payroll 6,649,731$ Contributions as a Percentage of Covered-Employee Payroll 37.23% Note to Schedule: Valuation Date:June 30, 2012 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period Assets valuation method 15 Year Smoothed Market Inflation 2.75% Salary Increases Investment rate of return Retirement age 50 and 57 years Mortality RP-2000 Heath Annuitant Mortality Table (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation 21 Years as of the Valuation Date 3.30% to 14.20% depending on Age, Service, and type of employment 89 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA RETIREMENT ENHANCEMENT PLANS SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD SEIU Bargaining Group AMMA Bargaining Group Executive/ Contract Bargaining Group IBEW Employees TOTAL PENSION LIABILITY Service Cost 18,174$ 102,116$ -$ 107,529$ Interest on Total Pension Liability 32,199 207,196 176,286 199,129 Benefit Payments (13,203) (83,368) (125,424) (93,243) Net Change in Total Pension Liability 37,170$ 225,944$ 50,862$ 213,415$ Total Pension Liability - Beginning 448,297 2,898,784 2,580,027 2,782,999 Total Pension Liability - Ending (a)485,467$ 3,124,728$ 2,630,889$ 2,996,414$ PLAN FIDUCIARY NET POSITION Benefit Payments (13,203)$ (83,368)$ (125,424)$ (93,243)$ Employer Contributions 12,890 138,866 78,751 153,146 Member Contributions 25,312 46,205 - 82,044 Net Investment Income 7,232 47,672 26,218 41,194 Administrative Expenses (1,510) (8,240) (5,569) (7,492) Net Change in Fiduciary Net Position 30,721$ 141,135$ (26,024)$ 175,649$ Plan Fiduciary Net Position - Beginning 259,568 1,766,745 1,021,390 1,499,095 Plan Fiduciary Net Position - Ending (b)290,289$ 1,907,880$ 995,366$ 1,674,744$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)195,178$ 1,216,848$ 1,635,523$ 1,321,670$ 59.80%61.06%37.83%55.89% Covered-Employee Payroll 600,978$ 2,061,252$ 959,103$ 3,932,745$ 32.48%59.03%170.53%33.61% (2) Net of administrative expenses. Notes to Schedule: Changes of Assumptions: There were no changes in assumptions. Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered-Employee Payroll Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, additional years will be added as they become available in the future. 90 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA RETIREMENT ENHANCEMENT PLANS SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) SEIU Bargaining Group AMMA Bargaining Group Executive/ Contract Bargaining Group IBEW Employees Actuarially Determined Contribution 12,890$ 138,866$ 115,922$ 153,146$ Contribution in Relation to the Actuarially Determined Contribution (12,890) (138,866) (115,922) (153,146) Contribution Deficiency (Excess)-$ -$ -$ -$ Actual Contributions as a Percentage of Actuarial Determined Contributions 100.00% 100.00% 100.00%100.00% Covered-Employee Payroll (3) (4)620,510$ 2,128,243$ 990,274$ 4,060,559$ Contributions as a Percentage of Covered-Employee Payroll (3)2.08% 6.52% 11.71%3.77% Note to Schedule: Valuation Date:June 30, 2013 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level dollar, closed Remaining amortization period 6 years Assets valuation method None Inflation 3.00% Salary Increases Varies by entry age and service Investment rate of return Retirement age Mortality (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, additional years will be added as they 7.50% Retirement rates of 20% per year for ages 55-69 and 100% at ages 70 and up Consistent with non-industrial rates used to value the Miscellaneous CalPERS Pension Plans 91 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA RETIREMENT ENHANCEMENT PLANS SCHEDULE OF INVESTMENT RETURNS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) SEIU Bargaining Group AMMA Bargaining Group Executive/ Contract Bargaining Group IBEW Employees Annual Money-Weighted Rate of Return, Net of Investment Expense 2.66% 2.64% 2.60% 2.64% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, additional years will be added as they become available in the future. 92 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 20,253,466$ 20,253,466$ 20,253,466$ -$ Resources (Inflows): Taxes 27,285,945 27,392,345 29,245,228 1,852,883 Assessments 1,666,880 1,704,880 1,299,713 (405,167) Licenses and permits 1,057,250 1,165,250 1,600,109 434,859 Intergovernmental 250,300 398,600 728,188 329,588 Charges for services 2,350,510 2,290,510 2,438,210 147,700 Use of money and property 80,000 80,000 291,173 211,173 Fines and forfeitures 1,200,000 1,170,000 1,343,809 173,809 Contributions 21,000 21,000 10,798,039 10,777,039 Miscellaneous 88,700 88,700 293,383 204,683 Transfers in 1,649,870 1,649,870 1,604,547 (45,323) Amounts Available for Appropriations 55,903,921 56,214,621 69,895,865 13,681,244 Charges to Appropriations (Outflow): General government City council 134,130 134,130 123,036 11,094 City Attorney 250,000 250,000 236,078 13,922 Administration 368,460 352,310 351,986 324 Promotion / Membership 169,770 165,770 155,706 10,064 City Clerk 479,585 498,930 484,268 14,662 Library Services - General 983,090 983,090 975,097 7,993 Library Services - Youth 31,430 31,430 31,520 (90) Finance - Accounting 778,780 791,635 790,109 1,526 Cash Management 149,285 140,295 140,288 7 Purchasing 213,475 219,785 219,764 21 Printing Services 10,200 9,500 8,597 903 Human Resources 349,275 363,075 298,901 64,174 City-wide 2,398,210 2,424,940 2,261,623 163,317 Admin Services / Business Lic 1,550 1,550 - 1,550 Business License 312,340 327,340 300,105 27,235 Public safety Police 16,069,455 16,079,455 15,956,404 123,051 Emergency Services 15,780 15,780 11,467 4,313 Police Department Contracts 734,370 869,370 857,124 12,246 Area D 100,000 215,100 115,075 100,025 Pension Safety 5,000 5,000 3,850 1,150 INF 391,130 361,280 284,221 77,059 Community development Planning 442,075 432,675 357,356 75,319 Building Regulation 732,105 697,905 647,450 50,455 Code Enforcement 488,335 487,135 474,869 12,266 Parks and recreation Recreation 1,349,805 1,394,685 1,394,374 311 Parks Maintenance 1,553,010 1,588,810 1,488,678 100,132 Senior Programs 154,030 163,630 135,120 28,510 Women's Club 24,550 24,550 17,928 6,622 Public works Engineering Services 55,820 60,490 58,469 2,021 Graffiti Removal 77,015 77,015 41,573 35,442 Facilities Maintenance 432,185 488,910 488,226 684 Capital outlay 122,465 114,135 109,777 4,358 Debt service: Principal retirement 1,070,000 1,070,000 11,905,286 (10,835,286) Interest and fiscal charges 280,235 280,235 266,247 13,988 Transfers out 4,918,400 5,618,400 5,245,046 373,354 Extraordinary loss - - 4,113,065 (4,113,065) Total Charges to Appropriations 35,645,345 36,738,340 50,348,683 (13,610,343) Budgetary Fund Balance, June 30 20,258,576$ 19,476,281$ 19,547,182$ 70,901$ 93 CITY OF AZUSA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2015 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 COPS Universal Hiring special revenue, Supplemental Law Enforcement special revenue, Rosedale Traffic Mitigation special revenue and Capital Projects funds had no adopted budgets. 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. 94 CITY OF AZUSA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2015 Budget Information (Continued) Expenditures Appropriations Excess General Fund: General Government: Library Services - Youth 31,520$ 31,430$ (90)$ Debt Service Principal Retirement 11,905,286 1,070,000 (10,835,286) Fund 95 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments 142,226$ 808,661$ 1,872,745$ -$ Receivables: Accounts - 27,521 3,655 37,922 Taxes - - - - Notes and loans - - - 57,237 Accrued interest 19 217 607 - Prepaid costs - - - - Deposits - - 466 - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agents - - - - Total Assets 142,245$ 836,399$ 1,877,473$ 95,159$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 94,596$ 28,860$ 34,558$ 25,982$ Accrued liabilities 30,294 13,866 9,738 2,102 Unearned revenues - 24,610 - 3,970 Deposits payable - - - - Due to other funds - - - 7,388 Advances from other funds - - - - Total Liabilities 124,890 67,336 44,296 39,442 Deferred Inflows of Resources: Unavailable revenues - - - 61,235 Total Deferred Inflows of Resources - - - 61,235 Fund Balances: Restricted for: Community development projects 17,355 769,063 1,833,177 - Public safety - - - - Capital Projects - - - - Debt service - - - - Unassigned - - - (5,518) Fund Balance Total 17,355 769,063 1,833,177 (5,518) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 142,245$ 836,399$ 1,877,473$ 95,159$ State Gasoline Tax Proposition A Proposition C Community Development Block Grant Special Revenue Funds 96 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: 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) 7,442$ 474,636$ 112,133$ 1,016,014$ 1,878 75,965 15,752 624,515 - - - - - - - - - 111 33 - - 190 - 3,105 - - - - - - - - - - - - 9,320$ 550,902$ 127,918$ 1,643,634$ -$ 19,072$ 3,486$ 76,837$ 9,320 5,178 - 44,884 - - - 435,315 - - - - - - - - - - - - 9,320 24,250 3,486 557,036 - - - 90,906 - - - 90,906 - 526,652 - - - - - 995,692 - - 124,432 - - - - - - - - - - 526,652 124,432 995,692 9,320$ 550,902$ 127,918$ 1,643,634$ Air Quality Improvement Grants and Seizure Senior Nutrition Public Benefit Program Special Revenue Funds 97 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances 131,957$ -$ -$ 765,559$ 2 - - 1,553 - - - 6,086 - - - - - - - 274 - - 6,600 - - - - - - - - - - - - - 131,959$ -$ 6,600$ 773,472$ -$ -$ -$ 14,977$ - - - 5,343 91,052 - - - - - - 12,550 - - 6,600 - - - - - 91,052 - 6,600 32,870 - - - - - - - - - - - - 40,907 - - - - - - 740,602 - - - - - - - - 40,907 - - 740,602 131,959$ -$ 6,600$ 773,472$ Monrovia Nursery Supplemental Law Enforcement Fire Safety COPS Universal Hiring Special Revenue Funds 98 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: 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) -$ 342,849$ 1,512,421$ -$ 1,395 - - - - - - - - - - - - - 481 - - - - - - - - - - - - - - - - - 1,395$ 342,849$ 1,512,902$ -$ -$ 20,309$ -$ -$ - - - - - - - - - - - - 1,395 - - 27 - - - - 1,395 20,309 - 27 - - - - - - - - - - 1,512,902 - - - - - - 322,540 - - - - - - - - - (27) - 322,540 1,512,902 (27) 1,395$ 342,849$ 1,512,902$ -$ Employee Benefits Utility Mitigation Highway 39 LACMTA Special Revenue Funds 99 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances Capital Projects Funds 1,691,485$ 394,137$ 501,068$ 76,500$ - 7,496 - - - - - - - - - - 518 - 159 23 - 70 - - - - - - - - - - - - - - 1,692,003$ 401,703$ 501,227$ 76,523$ 22,457$ 11,183$ -$ -$ 3,364 1,862 - - - - - - - - - - - - - - - - - - 25,821 13,045 - - - - - - - - - - - - - - - - - - 1,666,182 388,658 501,227 76,523 - - - - - - - - 1,666,182 388,658 501,227 76,523 1,692,003$ 401,703$ 501,227$ 76,523$ Park In-lieu AB939 Fee Rosedale Traffic Mitigation Measure R Special Revenue Funds 100 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: 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 Nonmajor Governmental Funds 719,166$ 521,467$ 14$ 11,090,480$ - - - 797,654 - - - 6,086 - - 2,285,000 2,342,237 - 166 25 2,633 - - - 9,965 - - - 466 30,501 - - 30,501 - - 482,612 482,612 749,667$ 521,633$ 2,767,651$ 14,762,634$ -$ 17,345$ -$ 369,662$ - - - 125,951 - - - 554,947 - - - 12,550 - - - 15,410 750,000 - - 750,000 750,000 17,345 - 1,828,520 - - 2,285,000 2,437,141 - - 2,285,000 2,437,141 - 504,288 - 5,163,437 - - - 1,036,599 - - - 3,820,164 - - 482,651 482,651 (333) - - (5,878) (333) 504,288 482,651 10,496,973 749,667$ 521,633$ 2,767,651$ 14,762,634$ Public Financing Authority Public Works Endowment Capital Projects Debt Service Funds Capital Projects Funds 101 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes -$ 841,572$ 697,759$ -$ Intergovernmental 1,231,176 150,290 - 436,189 Charges for services - 18,134 68,863 - Use of money and property 600 3,410 11,423 - Contributions - - - - Miscellaneous 202 - 218 1,531 Total Revenues 1,231,978 1,013,406 778,263 437,720 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - 324,368 Parks and recreation 58,991 - - - Public works 1,305,702 587,615 433,331 - Capital outlay 48,000 - 137,049 - Debt service: Principal retirement - - - - Interest and fiscal charges 928 - - - Total Expenditures 1,413,621 587,615 570,380 324,368 Excess (Deficiency) of Revenues Over (Under) Expenditures (181,643) 425,791 207,883 113,352 Other Financing Sources (Uses): Transfers in 55,583 - - - Transfers out - - - - Total Other Financing Sources (Uses)55,583 - - - Net Change in Fund Balances (126,060) 425,791 207,883 113,352 Fund Balances, Beginning of Year 143,415 343,272 1,625,294 (118,870) Restatements - - - - Fund Balances, Beginning of Year, as Restated 143,415 343,272 1,625,294 (118,870) Fund Balances, End of Year 17,355$ 769,063$ 1,833,177$ (5,518)$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 102 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 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) -$ -$ -$ 6,315$ 167,454 - 77,633 1,756,537 - 1,162,171 13,782 89,890 - 1,267 1,343 5,488 63,511 - - 2,935 13,790 - - 12,750 244,755 1,163,438 92,758 1,873,915 - 163,864 - 92,162 - - - 182,492 - 512,859 - 47,423 325,244 - - 169,617 - - 27,176 414,835 - - 200,261 1,203,587 - - - - - - - - 325,244 676,723 227,437 2,110,116 (80,489) 486,715 (134,679) (236,201) 99,879 - - - (19,390) - - - 80,489 - - - - 486,715 (134,679) (236,201) - 39,937 259,111 1,056,517 - - - 175,376 - 39,937 259,111 1,231,893 -$ 526,652$ 124,432$ 995,692$ Special Revenue Funds Senior Nutrition Public Benefit Program Air Quality Improvement Grants and Seizure 103 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 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 -$ -$ -$ -$ 59,805 - - - - 58,079 - 592,693 638 - - 4,548 - - - - - - - - 60,443 58,079 - 597,241 - - - - 59,806 4,308,630 - - - - - - - - - - - - - 224,790 - - - 14,201 - - - - - - - - 59,806 4,308,630 - 238,991 637 (4,250,551) - 358,250 - 4,250,551 - - - - - (304,678) - 4,250,551 - (304,678) 637 - - 53,572 40,270 - - 687,030 - - - - 40,270 - - 687,030 40,907$ -$ -$ 740,602$ Special Revenue Funds Supplemental Law Enforcement Fire Safety COPS Universal Hiring Monrovia Nursery 104 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 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) -$ -$ -$ -$ - - - 14,916 - - - - - - 9,556 (27) - - - - - - - - - - 9,556 14,889 46,995 - - - - - - - - - - - - - - - - 36,856 - 14,916 - - - - - - - - - - - - 46,995 36,856 - 14,916 (46,995) (36,856) 9,556 (27) 46,995 64,031 - - - - - - 46,995 64,031 - - - 27,175 9,556 (27) - 295,365 1,503,346 - - - - - - 295,365 1,503,346 - -$ 322,540$ 1,512,902$ (27)$ Employee Benefits Utility Mitigation Highway 39 LACMTA Special Revenue Funds 105 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 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 523,665$ -$ -$ -$ - - - 52,500 - 205,433 - - 9,806 - 3,165 354 - - - - - - - - 533,471 205,433 3,165 52,854 - - - - - - - - - - - - - - - - 255,372 121,082 - - - - - - - - - - - - - - 255,372 121,082 - - 278,099 84,351 3,165 52,854 - - - - - - - - - - - - 278,099 84,351 3,165 52,854 1,388,083 304,307 498,062 23,669 - - - - 1,388,083 304,307 498,062 23,669 1,666,182$ 388,658$ 501,227$ 76,523$ Measure R AB939 Fee Rosedale Traffic Mitigation Park In-lieu Special Revenue Funds 106 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 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 -$ -$ -$ 2,069,311$ - - - 3,946,500 - - - 2,209,045 6 3,374 142 55,093 - - - 66,446 - - 356,749 385,240 6 3,374 356,891 8,731,635 - - 4,625 307,646 - - - 4,550,928 233 - - 884,883 - - - 553,852 - 23,409 - 3,445,084 - 12,301 - 1,615,399 - - 255,000 255,000 - - 150,284 151,212 233 35,710 409,909 11,764,004 (227) (32,336) (53,018) (3,032,369) - - 53,163 4,570,202 - - (121) (324,189) - - 53,042 4,246,013 (227) (32,336) 24 1,213,644 (106) 536,624 482,627 9,107,953 - - - 175,376 (106) 536,624 482,627 9,283,329 (333)$ 504,288$ 482,651$ 10,496,973$ Debt Service Funds Capital Projects Public Works Endowment Public Financing Authority Capital Projects Funds 107 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE STATE GASOLINE TAX YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 143,415$ 143,415$ 143,415$ -$ Resources (Inflows): Intergovernmental 1,274,530 1,274,530 1,231,176 (43,354) Use of money and property 5,000 5,000 600 (4,400) Miscellaneous - - 202 202 Transfers in 37,055 37,055 55,583 18,528 Amounts Available for Appropriations 1,460,000 1,460,000 1,430,976 (29,024) Charges to Appropriations (Outflow): Parks and recreation 59,000 59,000 58,991 9 Public works 1,300,235 1,388,315 1,305,702 82,613 Capital outlay - 48,000 48,000 - Debt service: Interest and fiscal charges - - 928 (928) Total Charges to Appropriations 1,359,235 1,495,315 1,413,621 81,694 Budgetary Fund Balance, June 30 100,765$ (35,315)$ 17,355$ 52,670$ 108 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION A YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 343,272$ 343,272$ 343,272$ -$ Resources (Inflows): Taxes 833,260 833,260 841,572 8,312 Intergovernmental 105,000 105,000 150,290 45,290 Charges for services 20,900 20,900 18,134 (2,766) Use of money and property 11,655 11,655 3,410 (8,245) Amounts Available for Appropriations 1,314,087 1,314,087 1,356,678 42,591 Charges to Appropriations (Outflow): Public works 747,875 885,075 587,615 297,460 Total Charges to Appropriations 747,875 885,075 587,615 297,460 Budgetary Fund Balance, June 30 566,212$ 429,012$ 769,063$ 340,051$ 109 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION C YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,625,294$ 1,625,294$ 1,625,294$ -$ Resources (Inflows): Taxes 691,170 691,170 697,759 6,589 Charges for services 96,235 96,235 68,863 (27,372) Use of money and property 16,570 16,570 11,423 (5,147) Miscellaneous - - 218 218 Amounts Available for Appropriations 2,429,269 2,429,269 2,403,557 (25,712) Charges to Appropriations (Outflow): Public works 609,340 722,890 433,331 289,559 Capital outlay - 1,420,000 137,049 1,282,951 Total Charges to Appropriations 609,340 2,142,890 570,380 1,572,510 Budgetary Fund Balance, June 30 1,819,929$ 286,379$ 1,833,177$ 1,546,798$ 110 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (118,870)$ (118,870)$ (118,870)$ -$ Resources (Inflows): Intergovernmental 781,240 781,240 436,189 (345,051) Miscellaneous 2,600 2,600 1,531 (1,069) Amounts Available for Appropriations 664,970 664,970 318,850 (346,120) Charges to Appropriations (Outflow): Community development 781,240 781,240 324,368 456,872 Total Charges to Appropriations 781,240 781,240 324,368 456,872 Budgetary Fund Balance, June 30 (116,270)$ (116,270)$ (5,518)$ 110,752$ 111 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SENIOR NUTRITION YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 115,100 117,678 167,454 49,776 Contributions 58,500 58,500 63,511 5,011 Miscellaneous 16,500 16,500 13,790 (2,710) Transfers in 145,880 145,880 99,879 (46,001) Amounts Available for Appropriations 335,980 338,558 344,634 6,076 Charges to Appropriations (Outflow): Parks and recreation 335,980 338,558 325,244 13,314 Transfers out - - 19,390 (19,390) Total Charges to Appropriations 335,980 338,558 344,634 (6,076) Budgetary Fund Balance, June 30 -$ -$ -$ -$ 112 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC BENEFIT PROGRAM YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 39,937$ 39,937$ 39,937$ -$ Resources (Inflows): Charges for services 1,094,890 1,094,890 1,162,171 67,281 Use of money and property 3,000 3,000 1,267 (1,733) Amounts Available for Appropriations 1,137,827 1,137,827 1,203,375 65,548 Charges to Appropriations (Outflow): General government 267,255 267,255 163,864 103,391 Community development 728,500 728,500 512,859 215,641 Total Charges to Appropriations 995,755 995,755 676,723 319,032 Budgetary Fund Balance, June 30 142,072$ 142,072$ 526,652$ 384,580$ 113 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 259,111$ 259,111$ 259,111$ -$ Resources (Inflows): Intergovernmental 57,100 57,100 77,633 20,533 Charges for services 43,000 43,000 13,782 (29,218) Use of money and property 1,500 1,500 1,343 (157) Amounts Available for Appropriations 360,711 360,711 351,869 (8,842) Charges to Appropriations (Outflow): Public works 48,705 48,705 27,176 21,529 Capital outlay 209,280 225,280 200,261 25,019 Total Charges to Appropriations 257,985 273,985 227,437 46,548 Budgetary Fund Balance, June 30 102,726$ 86,726$ 124,432$ 37,706$ 114 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE GRANTS AND SEIZURE YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 1,231,893$ 1,231,893$ 1,231,893$ -$ Resources (Inflows): Taxes - 32,000 6,315 (25,685) Intergovernmental 14,320,410 14,516,875 1,756,537 (12,760,338) Charges for services - - 89,890 89,890 Use of money and property - - 5,488 5,488 Contributions - - 2,935 2,935 Miscellaneous 19,560 19,560 12,750 (6,810) Transfers in - 93,580 - (93,580) Amounts Available for Appropriations 15,571,863 15,893,908 3,105,808 (12,788,100) Charges to Appropriations (Outflow): General government 322,000 322,000 92,162 229,838 Public safety - 294,780 182,492 112,288 Community development - 48,671 47,423 1,248 Parks and recreation 11,285 191,929 169,617 22,312 Public works 389,960 451,575 414,835 36,740 Capital outlay 452,785 2,270,010 1,203,587 1,066,423 Total Charges to Appropriations 1,176,030 3,578,965 2,110,116 1,468,849 Budgetary Fund Balance, June 30 14,395,833$ 12,314,943$ 995,692$ (11,319,251)$ 115 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE FIRE SAFETY YEAR ENDED JUNE 30, 2015 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 58,079 (31,921) Transfers in 4,252,195 4,252,195 4,250,551 (1,644) Amounts Available for Appropriations 4,342,195 4,342,195 4,308,630 (33,565) Charges to Appropriations (Outflow): Public safety 4,342,195 4,342,195 4,308,630 33,565 Total Charges to Appropriations 4,342,195 4,342,195 4,308,630 33,565 Budgetary Fund Balance, June 30 -$ -$ -$ -$ 116 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MONROVIA NURSERY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 687,030$ 687,030$ 687,030$ -$ Resources (Inflows): Charges for services 550,000 550,000 592,693 42,693 Use of money and property 4,800 4,800 4,548 (252) Amounts Available for Appropriations 1,241,830 1,241,830 1,284,271 42,441 Charges to Appropriations (Outflow): Public works 238,940 238,940 224,790 14,150 Capital outlay 14,210 14,210 14,201 9 Transfers out 304,000 304,000 304,678 (678) Total Charges to Appropriations 557,150 557,150 543,669 13,481 Budgetary Fund Balance, June 30 684,680$ 684,680$ 740,602$ 55,922$ 117 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFITS YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Transfers in 46,690 46,690 46,995 305 Amounts Available for Appropriations 46,690 46,690 46,995 305 Charges to Appropriations (Outflow): General government 46,690 46,690 46,995 (305) Total Charges to Appropriations 46,690 46,690 46,995 (305) Budgetary Fund Balance, June 30 -$ -$ -$ -$ 118 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE UTILITY MITIGATION YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 295,365$ 295,365$ 295,365$ -$ Resources (Inflows): Transfers in 150,000 150,000 64,031 (85,969) Amounts Available for Appropriations 445,365 445,365 359,396 (85,969) Charges to Appropriations (Outflow): Public works 300,000 300,000 36,856 263,144 Total Charges to Appropriations 300,000 300,000 36,856 263,144 Budgetary Fund Balance, June 30 145,365$ 145,365$ 322,540$ 177,175$ 119 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE HIGHWAY 39 YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,503,346$ 1,503,346$ 1,503,346$ -$ Resources (Inflows): Use of money and property - 10,500 9,556 (944) Miscellaneous - - - - Amounts Available for Appropriations 1,503,346 1,513,846 1,512,902 (944) Budgetary Fund Balance, June 30 1,503,346$ 1,513,846$ 1,512,902$ (944)$ 120 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE LACMTA YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental - - 14,916 14,916 Use of money and property - - (27) (27) Miscellaneous 849,670 849,670 - (849,670) Amounts Available for Appropriations 849,670 849,670 14,889 (834,781) Charges to Appropriations (Outflow): Public works - 320,000 14,916 305,084 Capital outlay 524,000 524,000 - 524,000 Total Charges to Appropriations 524,000 844,000 14,916 829,084 Budgetary Fund Balance, June 30 325,670$ 5,670$ (27)$ (5,697)$ 121 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MEASURE R YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,388,083$ 1,388,083$ 1,388,083$ -$ Resources (Inflows): Taxes 518,380 644,880 523,665 (121,215) Use of money and property - - 9,806 9,806 Amounts Available for Appropriations 1,906,463 2,032,963 1,921,554 (111,409) Charges to Appropriations (Outflow): Public works 218,850 527,289 255,372 271,917 Capital outlay 24,680 24,680 - 24,680 Total Charges to Appropriations 243,530 551,969 255,372 296,597 Budgetary Fund Balance, June 30 1,662,933$ 1,480,994$ 1,666,182$ 185,188$ 122 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AB939 FEE YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 304,307$ 304,307$ 304,307$ -$ Resources (Inflows): Charges for services 203,000 203,000 205,433 2,433 Amounts Available for Appropriations 507,307 507,307 509,740 2,433 Charges to Appropriations (Outflow): Public works 192,440 192,440 121,082 71,358 Total Charges to Appropriations 192,440 192,440 121,082 71,358 Budgetary Fund Balance, June 30 314,867$ 314,867$ 388,658$ 73,791$ 123 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PARK IN-LIEU YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 23,669$ 23,669$ 23,669$ -$ Resources (Inflows): Intergovernmental 2,000 2,000 52,500 50,500 Use of money and property 20 20 354 334 Amounts Available for Appropriations 25,689 25,689 76,523 50,834 Budgetary Fund Balance, June 30 25,689$ 25,689$ 76,523$ 50,834$ 124 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC WORKS ENDOWMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 536,624$ 536,624$ 536,624$ -$ Resources (Inflows): Use of money and property - 4,000 3,374 (626) Amounts Available for Appropriations 536,624 540,624 539,998 (626) Charges to Appropriations (Outflow): Public works 21,750 30,050 23,409 6,641 Capital outlay 91,500 120,086 12,301 107,785 Total Charges to Appropriations 113,250 150,136 35,710 114,426 Budgetary Fund Balance, June 30 423,374$ 390,488$ 504,288$ 113,800$ 125 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 482,627$ 482,627$ 482,627$ -$ Resources (Inflows): Use of money and property 100 100 142 42 Miscellaneous - - 356,749 356,749 Transfers in 361,475 361,475 53,163 (308,312) Amounts Available for Appropriations 844,202 844,202 892,681 48,479 Charges to Appropriations (Outflow): General government 4,625 4,625 4,625 - Debt service: Principal retirement 255,000 255,000 255,000 - Interest and fiscal charges 101,850 150,284 150,284 - Transfers out - - 121 (121) Total Charges to Appropriations 361,475 409,909 410,030 (121) Budgetary Fund Balance, June 30 482,727$ 434,293$ 482,651$ 48,358$ 126 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2015 Totals Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 2,770,336$ 218,516$ 2,988,852$ Receivables: Accounts 307,716 414,041 721,757 Accrued interest 893 - 893 Restricted: Cash with fiscal agent 1,453,852 - 1,453,852 Total Current Assets 4,532,797 632,557 5,165,354 Noncurrent: Capital assets - net of accumulated depreciation 10,832,707 - 10,832,707 Total Noncurrent Assets 10,832,707 - 10,832,707 Total Assets 15,365,504 632,557 15,998,061 Deferred Outflows of Resources: Deferred pension related items 87,495 - 87,495 Total Deferred Outflows of Resources 87,495 - 87,495 Total Assets and Deferred Outflows of Resources 15,452,999$ 632,557$ 16,085,556$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 70,188$ 491,849$ 562,037$ Accrued liabilities 29,770 - 29,770 Accrued compensated absences 78,509 - 78,509 Bonds, notes, and capital leases 365,000 - 365,000 Total Current Liabilities 543,467 491,849 1,035,316 Noncurrent: Bonds, notes, and capital leases 4,365,000 - 4,365,000 Net pension liability 1,060,530 - 1,060,530 Total Noncurrent Liabilities 5,425,530 - 5,425,530 Total Liabilities 5,968,997 491,849 6,460,846 Deferred Inflows of Resources: Deferred pension related items 261,207 - 261,207 Total Deferred Inflows of Resources 261,207 - 261,207 Net Position: Net investment in capital assets 7,556,559 - 7,556,559 Unrestricted 1,666,236 140,708 1,806,944 Total Net Position 9,222,795 140,708 9,363,503 Total Liabilities, Net Position and Deferred Inflows of Resources 15,452,999$ 632,557$ 16,085,556$ Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 127 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Totals Operating Revenues: Sales and service charges 2,636,707$ 3,145,396$ 5,782,103$ Miscellaneous 12,733 6,361 19,094 Total Operating Revenues 2,649,440 3,151,757 5,801,197 Operating Expenses: Administration and general 1,143,215 - 1,143,215 Treatment 517,198 - 517,198 Refuse collection - 3,042,337 3,042,337 Depreciation expense 485,675 - 485,675 Total Operating Expenses 2,146,088 3,042,337 5,188,425 Operating Income (Loss)503,352 109,420 612,772 Nonoperating Revenues (Expenses): Taxes - 574,179 574,179 Interest revenue 9,930 - 9,930 Interest expense (168,563) - (168,563) Special franchise fees (53,473) - (53,473) Total Nonoperating Revenues (Expenses)(212,106) 574,179 362,073 Income (Loss) Before Transfers 291,246 683,599 974,845 Transfers out (132,865) (682,660) (815,525) Changes in Net Position 158,381 939 159,320 Net Position: Beginning of Year, as originally reported 10,304,489 139,769 10,444,258 Restatements (1,240,075) - (1,240,075) Beginning of Fiscal Year, as restated 9,064,414 139,769 9,204,183 End of Fiscal Year 9,222,795$ 140,708$ 9,363,503$ Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 128 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Totals Cash Flows from Operating Activities: Cash received from customers and users 2,655,693$ 3,146,469$ 5,802,162$ Cash paid to suppliers for goods and services (484,882) (3,005,492) (3,490,374) Cash paid to employees for services (1,157,212) - (1,157,212) Net Cash Provided by (Used in) Operating Activities 1,013,599 140,977 1,154,576 Cash Flows from Non-Capital Financing Activities: Cash transfers out (132,865) (682,660) (815,525) Repayment made to other funds (458,591) - (458,591) Net Cash Used in Non-Capital Financing Activities (591,456) (682,660) (1,274,116) Cash Flows from Capital and Related Financing Activities: Principal paid on capital debt (350,000) - (350,000) Interest paid on capital debt (168,563) - (168,563) Special franchise fees (53,473) - (53,473) Taxes - 574,179 574,179 Net Cash Provided by (Used in) Capital and Related Financing Activities (572,036) 574,179 2,143 Cash Flows from Investing Activities: Interest received 9,071 - 9,071 Net Cash Provided by Investing Activities 9,071 - 9,071 Net Decrease in Cash and Cash Equivalents (140,822) 32,496 (108,326) Cash and Cash Equivalents at Beginning of Year 4,365,010 186,020 4,551,030 Cash and Cash Equivalents at End of Year 4,224,188$ 218,516$ 4,442,704$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)503,352$ 109,420$ 612,772$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 485,675 - 485,675 (Increase) decrease in accounts receivable 6,253 (5,288) 965 (Increase) decrease in prepaid expense 4,424 - 4,424 (Increase) decrease in deferred pension related outflows (87,495) - (87,495) Increase (decrease) in accounts payable 21,675 36,845 58,520 Increase (decrease) in accrued liabilities 6,217 - 6,217 Increase (decrease) in compensated absences (8,164) - (8,164) Increase (decrease) in net pension liability (179,545) - (179,545) Increase (decrease) in deferred pension related inflows 261,207 - 261,207 Total Adjustments 510,247 31,557 541,804 Net Cash Provided by (Used in) Operating Activities 1,013,599$ 140,977$ 1,154,576$ There were no Non-Cash Investing, Capital, and Financing Activities Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 129 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 1,719,204$ 2,490,641$ -$ 9,823$ Receivables: Accounts 188,922 - 96 - Notes and loans 3,951 537 - - Accrued interest 9,947 569 - 3 Prepaid costs 4,390 999 - - Total Current Assets 1,926,414 2,492,746 96 9,826 Noncurrent: Capital assets - net of accumulated depreciation 527,129 - 31,172 442,457 Total Noncurrent Assets 527,129 - 31,172 442,457 Total Assets 2,453,543 2,492,746 31,268 452,283 Deferred Outflows of Resources: Deferred pension related items 356,165 9,368 - - Total Deferred Outflows of Resources 356,165 9,368 - - Total Assets and Deferred Outflows of Resources 2,809,708$ 2,502,114$ 31,268$ 452,283$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 94,724$ 664,950$ -$ -$ Accrued liabilities 515,820 23,184 561 - Due to other funds - - 34,216 - Accrued compensated absences 242,744 4,337 - - Accrued claims and judgments - 1,430,273 - - Total Current Liabilities 853,288 2,122,744 34,777 - Noncurrent: Accrued compensated absences 41,247 1,444 - - Net pension liability 3,513,437 67,095 - - Total Noncurrent Liabilities 3,554,684 68,539 - - Total Liabilities 4,407,972 2,191,283 34,777 - Deferred Inflows of Resources: Deferred pension related items 835,723 20,082 - - Total Deferred Inflows of Resources 835,723 20,082 - - Net Position: Net investment in capital assets 527,129 - 31,172 442,457 Unrestricted (2,961,116) 290,749 (34,681) 9,826 Total Net Position (2,433,987) 290,749 (3,509) 452,283 Total Liabilities, Net Position and Deferred Inflows of Resources 2,809,708$ 2,502,114$ 31,268$ 452,283$ Consumer Services Self Insurance Central Services Equipment Replacement Governmental Activities - Internal Service Funds 130 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 Assets and Deferred Outflows of Resources: 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 Deferred Outflows of Resources: Deferred pension related items Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable Accrued liabilities Due to other funds Accrued compensated absences Accrued claims and judgments Total Current Liabilities Noncurrent: Accrued compensated absences Net pension liability Total Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources: Deferred pension related items Total Deferred Inflows of Resources Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities, Net Position and Deferred Inflows of Resources Totals 192,629$ 4,412,297$ - 189,018 - 4,488 - 10,519 70,274 75,663 262,903 4,691,985 - 1,000,758 - 1,000,758 262,903 5,692,743 101,377 466,910 101,377 466,910 364,280$ 6,159,653$ 96,397$ 856,071$ 34,166 573,731 - 34,216 98,514 345,595 - 1,430,273 229,077 3,239,886 80,995 123,686 1,757,050 5,337,582 1,838,045 5,461,268 2,067,122 8,701,154 250,559 1,106,364 250,559 1,106,364 - 1,000,758 (1,953,401) (4,648,623) (1,953,401) (3,647,865) 364,280$ 6,159,653$ Governmental Activities - Internal Service Funds IT Services 131 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Operating Revenues: Sales and service charges 6,361,701$ 2,341,154$ -$ -$ Miscellaneous - - - - Total Operating Revenues 6,361,701 2,341,154 - - Operating Expenses: Administration and general 4,910,027 1,502,258 - 2,002 Source of supply 134,581 - - - Claims expense 585,353 216,856 - - Depreciation expense 103,468 - 2,599 148,217 Total Operating Expenses 5,733,429 1,719,114 2,599 150,219 Operating Income (Loss)628,272 622,040 (2,599) (150,219) Nonoperating Revenues (Expenses): Interest revenue - 7,335 - (316) Gain (loss) on disposal of capital assets - - 571 (17,092) Total Nonoperating Revenues (Expenses)- 7,335 571 (17,408) Income (Loss) Before Transfers 628,272 629,375 (2,028) (167,627) Transfers in 129,660 700,000 2,029 150,485 Transfers out (677,114) - - - Changes in Net Position 80,818 1,329,375 1 (17,142) Net Position: Beginning of Year, as originally reported 1,559,009 (957,047) (3,510) 744,673 Restatements (4,073,814) (81,579) - (275,248) Beginning of Fiscal Year, as restated (2,514,805) (1,038,626) (3,510) 469,425 End of Fiscal Year (2,433,987)$ 290,749$ (3,509)$ 452,283$ Self Insurance Central Services Equipment Replacement Governmental Activities - Internal Service Funds Consumer Services 132 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Operating Revenues: Sales and service charges Miscellaneous Total Operating Revenues Operating Expenses: Administration and general Source of supply Claims expense Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Gain (loss) on disposal of capital assets Total Nonoperating Revenues (Expenses) Income (Loss) Before Transfers Transfers in Transfers out Changes in Net Position Net Position: Beginning of Year, as originally reported Restatements Beginning of Fiscal Year, as restated End of Fiscal Year Totals 1,367,255$ 10,070,110$ 13,123 13,123 1,380,378 10,083,233 1,235,800 7,650,087 138,655 273,236 - 802,209 - 254,284 1,374,455 8,979,816 5,923 1,103,417 - 7,019 - (16,521) - (9,502) 5,923 1,093,915 - 982,174 - (677,114) 5,923 1,398,975 (32,276) 1,310,849 (1,927,048) (6,357,689) (1,959,324) (5,046,840) (1,953,401)$ (3,647,865)$ Governmental Activities - Internal Service Funds IT Services 133 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Cash Flows from Operating Activities: Cash received from customers and users 7,666,499$ 2,348,387$ 571$ -$ Cash paid to suppliers for goods and services (642,720) (897,567) - (17,092) Cash paid to employees for services (4,973,571) (1,502,413) - (2,002) Net Cash Provided by (Used in) Operating Activities 2,050,208 (51,593) 571 (19,094) Cash Flows from Non-Capital Financing Activities: Cash transfers out (677,114) - - - Cash transfers in 129,660 700,000 2,029 150,485 Repayment made to other funds - - (2,600) - Net Cash Provided by (Used in) Non-Capital Financing Activities (547,454) 700,000 (571) 150,485 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (18,571) - - (129,334) Net Cash Provided (Used) by Capital and Related Financing Activities (18,571) - - (129,334) Cash Flows from Investing Activities: Repayment received on loans (2,600) - - - Interest received (2,809) 7,000 - (317) Net Cash Provided by (Used in) Investing Activities (5,409) 7,000 - (317) Net Increase (Decrease) in Cash and Cash Equivalents 1,478,774 655,407 - 1,740 Cash and Cash Equivalents at Beginning of Year 240,430 1,835,234 - 8,083 Cash and Cash Equivalents at End of Year 1,719,204$ 2,490,641$ -$ 9,823$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)628,272$ 622,040$ (2,599)$ (150,219)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 103,468 - 2,599 148,217 Gain (loss) on sale of capital assets - - 571 (17,092) (Increase) decrease in accounts receivable 1,309,188 6,420 - - (Increase) decrease in prepaid expense (4,390) 813 - - (Increase) decrease in deferred pension related outflows (356,165) (9,368) Increase (decrease) in accounts payable (19,133) 224,461 - - Increase (decrease) in accrued liabilities 96,347 21,048 - - Increase (decrease) in claims and judgments - (926,220) - - Increase (decrease) in compensated absences 17,275 3,615 - - Increase (decrease) in net pension liability (560,377) (14,484) - - Increase (decrease) in deferred pension related inflows 835,723 20,082 - - Total Adjustments 1,421,936 (673,633) 3,170 131,125 Net Cash Provided by (Used in) Operating Activities 2,050,208$ (51,593)$ 571$ (19,094)$ Governmental Activities - Internal Service Funds Consumer Services Self Insurance Central Services Equipment Replacement 134 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 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 Gain (loss) on sale of capital assets (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense (Increase) decrease in deferred pension related outflows Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in claims and judgments Increase (decrease) in compensated absences Increase (decrease) in net pension liability Increase (decrease) in deferred pension related inflows Total Adjustments Net Cash Provided by (Used in) Operating Activities Totals 1,310,104$ 11,325,561$ (83,180) (1,640,559) (1,250,456) (7,728,442) (23,532) 1,956,560 - (677,114) - 982,174 - (2,600) - 302,460 - (147,905) - (147,905) - (2,600) - 3,874 - 1,274 (23,532) 2,112,389 216,161 2,299,908 192,629$ 4,412,297$ 5,923$ 1,103,417$ - 254,284 - (16,521) - 1,315,608 (70,274) (73,851) (101,377) (466,910) 49,647 254,975 5,828 123,223 - (926,220) 6,160 27,050 (169,998) (744,859) 250,559 1,106,364 (29,455) 853,143 (23,532)$ 1,956,560$ Governmental Activities - Internal Service Funds IT Services 135 CITY OF AZUSA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 Balance Balance 7/1/2014 Additions Deductions 6/30/2015 Deposit Trust Assets: Pooled cash and investments 4,059,151$ 5,579,923$ 4,522,964$ 5,116,110$ Receivables: Accounts 105,355 116,631 210,710 11,276 Taxes 106,456 166,157 212,910 59,703 Total Assets 4,270,962$ 5,862,711$ 4,946,584$ 5,187,089$ Liabilities: Accounts payable 239,008$ 4,542,229$ 4,592,252$ 188,985$ Accrued liabilities 12,695 35,538 14,788 33,445 Deposits payable 4,002,864 951,667 9,567 4,944,964 Due to other governments 16,395 3,300 - 19,695 Total Liabilities 4,270,962 $ 5,532,734 $ 4,616,607 $ 5,187,089 $ 136 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION WATER - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Water Operating Revenues: Residential sales 9,878,211$ Commercial sales 3,877,869 Industrial sales 2,305,504 Other sales 1,152,660 Fees 399,699 Other revenue 3,974,384 Total Operating Revenues 21,588,327 Operating Expenses: Production 7,541,026 Transmission and distribution 2,384,800 Customer accounting and sales 4,072,337 Uncollectible accounts 35,856 Administrative and general 787,818 Depreciation 3,725,639 Total Operating Expenses 18,547,476 Operating Income (Loss)3,040,851 Nonoperating Revenues (Expenses): Interest revenue 156,905 Interest expense (2,695,460) Franchise and in-lieu-tax (359,078) Contributions to the Successor Agency (303,634) Total Nonoperating Revenues (Expenses)(3,201,267) Net Income (160,416) Net Position: Beginning of Fiscal Year 57,696,506 Restatements (4,890,114) Beginning of Fiscal Year, as restated 52,806,392 End of Fiscal Year 52,645,976$ 137 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION LIGHT - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Light Operating Revenues: Sale/electricity - residential 12,995,948$ Sale/electricity - commercial and industrial 24,356,790 Sale/electricity - other 1,516,934 Sale/electricity - resale 7,287,845 Other revenue 211,803 Total Operating Revenues 46,369,320 Operating Expenses: Purchase power 28,834,815 Transmission/dispatching 4,018,091 Operation and maintenance 2,486,322 Uncollectible accounts 56,636 Administration general expenditures 3,720,352 Depreciation 1,270,648 Total Operating Expenses 40,386,864 Operating Income 5,982,456 Nonoperating Revenues (Expenses): Interest income 197,478 Interest expense (259,708) Franchise and in-lieu-tax (3,902,002) Total Nonoperating Revenues (Expenses)(3,964,232) Net Income Before Transfers 2,018,224 Transfers Out (95,049) Net Income 1,923,175 Net Position: Beginning of Fiscal Year 45,145,743 Restatements (3,848,694) Beginning of Fiscal Year, as restated 41,297,049 End of Fiscal Year 43,220,224$ 138 Financial Trends 141 - 145 Revenue Capacity 146 - 155 Debt Capacity 156 - 162 Demographic and Economic Information 163 - 165 Operating Information 166 - 168 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. These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 139 THIS PAGE INTENTIONALLY LEFT BLANK 140 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Go v e r n m e n t a l a c t i v i t i e s : In v e s t i n c a p i t a l a s s e t s , 21 , 3 6 4 , 7 5 5 $ 20 , 1 9 2 , 1 0 8 $ 18 , 3 8 5 , 2 9 4 $ 19 , 0 9 0 , 2 3 1 $ 19 , 3 7 2 , 2 3 7 $ 19 , 2 9 7 , 8 6 2 $ 28 , 8 6 2 , 6 9 6 $ 29 , 0 8 6 , 5 6 6 $ 29 , 9 5 9 , 4 3 1 $ 28 , 1 2 1 , 3 0 2 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 15 , 2 4 5 , 7 2 2 21 , 6 2 4 , 0 5 9 38 , 6 9 4 , 1 0 5 60 , 4 7 0 , 8 9 4 55 , 7 3 4 , 8 2 1 35 , 3 1 2 , 0 3 3 5, 3 0 6 , 0 3 9 8, 8 0 0 , 5 3 7 9, 2 2 2 , 1 6 6 10 , 5 0 2 , 8 5 1 Un r e s t r i c t e d (1 1 , 4 6 4 , 3 4 0 ) (1 8 , 3 4 7 , 9 4 3 ) (3 1 , 8 1 5 , 3 8 8 ) (5 8 , 8 7 4 , 8 2 5 ) (6 7 , 0 4 7 , 3 0 9 ) (5 0 , 9 8 2 , 7 4 6 ) 23 , 4 4 7 , 2 8 1 18 , 1 0 7 , 4 7 9 (7 , 7 7 4 , 8 5 1 ) (4 6 , 2 6 0 , 2 7 7 ) To t a l g o v e r n m e n t a l a c t i v i t i es n e t p o s i t i o n 2 5 , 1 4 6 , 1 3 7 $ 2 3 , 4 6 8 , 2 2 4 $ 2 5 , 2 6 4 , 0 1 1 $ 2 0 , 6 8 6 , 3 0 0 $ 8 , 0 5 9 , 7 4 9 $ 3 , 6 2 7 , 1 4 9 $ 5 7 , 6 1 6 , 0 1 6 $ 5 5 , 9 9 4 , 5 8 2 $ 3 1 , 4 0 6 , 7 4 6 $ ( 7 , 6 3 6 , 1 2 4 ) $ Bu s i n e s s - t y p e a c t i v i t i e s : In v e s t i n c a p i t a l a s s e t s , 53 , 2 0 7 , 8 1 1 $ 57 , 3 1 2 , 8 6 9 $ 57 , 3 7 2 , 6 6 2 $ 57 , 5 7 8 , 9 5 6 $ 58 , 6 9 6 , 4 9 9 $ 35 , 1 6 0 , 3 1 1 $ 60 , 5 6 4 , 1 6 9 $ 55 , 0 8 6 , 8 4 6 $ 58 , 4 6 5 , 8 6 9 $ 53 , 7 0 0 , 8 1 2 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 5, 4 2 6 , 2 3 2 5, 2 2 8 , 0 5 6 5, 0 4 5 , 4 9 5 5, 0 4 9 , 2 3 4 5, 0 6 9 , 3 6 1 3, 1 9 2 , 5 6 1 10 , 8 4 5 , 1 9 3 11 , 5 5 4 , 3 0 2 9, 8 4 5 , 9 0 1 15 , 0 8 5 , 5 0 6 Un r e s t r i c t e d 64 , 8 5 5 , 7 2 3 69 , 4 3 7 , 7 0 8 67 , 4 7 3 , 5 3 4 64 , 0 1 4 , 4 1 8 61 , 2 2 1 , 6 8 2 85 , 0 4 7 , 5 8 4 53 , 4 6 4 , 6 4 4 55 , 6 9 4 , 6 7 6 46 , 5 3 3 , 7 4 6 34 , 0 0 9 , 3 9 8 To t a l b u s i n e s s - t y p e a c t i v i t i es n e t p o s i t i on 1 2 3 , 4 8 9 , 7 6 6 $ 1 3 1 , 9 7 8 , 6 3 3 $ 1 2 9 , 8 9 1 , 6 9 1 $ 1 2 6 , 6 4 2 , 6 0 8 $ 1 2 4 , 9 8 7 , 5 4 2 $ 1 2 3 , 4 0 0 , 4 5 6 $ 1 2 4 , 8 7 4 , 0 0 6 $ 1 2 2 , 3 3 5 , 8 2 4 $ 1 1 4 , 8 4 5 , 5 1 6 $ 1 0 2 , 7 9 5 , 7 1 6 $ Pr i m a r y g o v e r n m e n t : In v e s t i n c a p i t a l a s s e t s , 74 , 5 7 2 , 5 6 6 $ 77 , 5 0 4 , 9 7 7 $ 75 , 7 5 7 , 9 5 6 $ 76 , 6 6 9 , 1 8 7 $ 78 , 0 6 8 , 7 3 6 $ 54 , 4 5 8 , 1 7 3 $ 89 , 4 2 6 , 8 6 5 $ 84 , 1 7 3 , 4 1 2 $ 88 , 4 2 5 , 3 0 0 $ 81 , 8 2 2 , 1 1 4 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 20 , 6 7 1 , 9 5 4 26 , 8 5 2 , 1 1 5 43 , 7 4 1 , 6 0 0 65 , 5 2 0 , 1 2 8 60 , 8 0 4 , 1 8 2 38 , 5 0 4 , 5 9 4 16 , 1 5 1 , 2 3 2 20 , 3 5 4 , 8 3 9 19 , 0 6 8 , 0 6 7 25 , 5 8 8 , 3 5 7 Un r e s t r i c t e d 53 , 3 9 1 , 3 8 3 51 , 0 8 9 , 7 6 5 35 , 6 5 6 , 1 4 6 5, 1 3 9 , 5 9 3 (5 , 8 2 5 , 6 2 7 ) 34 , 0 6 4 , 8 3 8 76 , 9 1 1 , 9 2 5 73 , 8 0 2 , 1 5 5 38 , 7 5 8 , 8 9 5 (1 2 , 2 5 0 , 8 7 9 ) To t a l p r i m a r y g o v e r n m e n t ne t p o s i t i o n 14 8 , 6 3 5 , 9 0 3 $ 1 5 5 , 4 4 6 , 8 5 7 $ 1 5 5 , 1 5 5 , 7 0 2 $ 1 4 7 , 3 2 8 , 9 0 8 $ 1 3 3 , 0 4 7 , 2 9 1 $ 1 2 7 , 0 2 7 , 6 0 5 $ 1 8 2 , 4 9 0 , 0 2 2 $ 1 7 8 , 3 3 0 , 4 0 6 $ 1 4 6 , 2 5 2 , 2 6 2 $ 9 5 , 1 5 9 , 5 9 2 $ Th e C i t y o f A z u s a i m p l e m e n t e d G A S B 3 4 f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 3 . In f o r m a t i o n p r i o r t o t h e i m p l e m e n t a t i o n o f G A S B 3 4 i s n o t a v a i l a b l e . So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 1 - N e t P o s i t i o n b y C o m p o n e n t La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s o f a c c o u n t i n g ) Fi s c a l Y e a r 141 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Pr o g r a m R e v e n u e : Go v e r n m e n t a l a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s Ge n e r a l g o v e r n m e n t 2, 9 2 3 , 4 7 8 $ 3, 5 5 3 , 4 3 5 $ 3, 9 3 0 , 1 0 6 $ 3, 4 1 8 , 3 9 3 $ 3, 7 6 0 , 1 5 9 $ 3, 8 5 5 , 8 1 0 $ 3, 0 9 0 , 3 0 4 $ 2, 3 0 4 , 2 9 0 $ 3, 9 1 9 , 8 7 6 $ 3, 5 1 7 , 8 1 0 $ Pu b l i c S a f e t y 48 2 , 3 8 6 62 0 , 5 4 2 75 5 , 1 8 6 68 1 , 9 4 3 87 1 , 9 0 0 71 3 , 8 4 6 72 1 , 0 3 2 70 5 , 1 4 0 82 9 , 0 5 4 74 1 , 5 5 1 Co m m u n i t y d e v e l o p m e n t 1, 3 7 0 , 1 5 2 1, 5 9 6 , 4 5 3 1, 6 9 7 , 4 6 7 1, 3 5 8 , 8 7 2 1, 6 5 9 , 0 5 7 1, 9 1 5 , 7 4 1 2, 6 1 5 , 6 3 1 2, 8 3 1 , 8 6 0 3, 2 9 6 , 9 8 7 3, 0 4 4 , 6 8 3 Pa r k s a n d r e c r e a t i o n 65 1 , 0 2 5 62 5 , 9 5 5 68 5 , 4 6 8 1, 1 2 7 , 0 7 7 1, 1 7 9 , 0 8 0 99 7 , 2 7 7 1, 0 4 6 , 5 8 4 1, 0 9 0 , 7 7 1 1, 1 8 1 , 5 6 1 1, 2 2 6 , 3 9 2 Pu b l i c W o r k s 21 7 , 3 8 9 16 8 , 2 1 8 16 8 , 6 5 7 20 3 , 2 8 0 36 8 , 2 7 5 36 4 , 9 1 0 83 8 , 9 5 8 47 6 , 5 0 6 52 5 , 3 4 3 96 1 , 8 7 5 Op e r a t i n g g r a n t s a n d c o nt r i b u t i o n s 2 , 7 0 1 , 4 1 0 3 , 0 5 4 , 1 7 1 2 , 7 3 1 , 1 9 5 5 , 3 0 7 , 6 9 6 3 , 2 6 1 , 4 7 2 3 , 6 5 1 , 4 9 1 3 , 2 6 7 , 2 8 7 2 , 1 2 1 , 6 3 8 3 , 8 3 6 , 4 7 9 1 3 , 9 1 6 , 0 7 3 Ca p i t a l g r a n t s a n d co n t r i b u t i o n s 8 2 0 , 7 4 4 4 9 7 , 9 0 5 4 6 8 , 2 7 9 2 8 6 , 8 7 5 6 5 4 , 4 6 7 1 0 9 , 2 2 6 1 3 7 , 1 0 2 2 , 9 8 8 , 7 6 0 4 4 2 , 7 2 7 4 0 8 , 9 0 5 To t a l g o v e r n m e n t a l a c t i v i t i e s pr o g r a m r e v e n u e s 9, 1 6 6 , 5 8 4 10 , 1 1 6 , 6 7 9 10 , 4 3 6 , 3 5 8 12 , 3 8 4 , 1 3 6 11 , 7 5 4 , 4 1 0 11 , 6 0 8 , 3 0 1 11 , 7 1 6 , 8 9 8 12 , 5 1 8 , 9 6 5 14 , 0 3 2 , 0 2 7 23 , 8 1 7 , 2 8 9 Bu s i n e s s - t y p e a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s W a t e r 14 , 9 2 5 , 7 5 7 17 , 2 5 4 , 9 6 3 16 , 5 0 1 , 4 3 4 14 , 8 0 5 , 2 4 1 16 , 1 4 4 , 1 3 0 17 , 7 7 9 , 4 1 7 20 , 0 6 2 , 1 1 8 21 , 6 0 4 , 4 3 5 21 , 7 6 2 , 2 4 2 21 , 5 1 5 , 3 9 7 Li g h t 38 , 0 5 0 , 4 6 2 34 , 9 3 2 , 8 4 0 35 , 9 9 8 , 3 8 9 34 , 4 9 6 , 8 0 5 35 , 1 9 2 , 9 4 1 39 , 1 8 9 , 9 8 0 40 , 9 6 2 , 6 4 8 42 , 3 7 7 , 6 9 4 45 , 0 0 1 , 7 4 8 46 , 2 2 2 , 2 6 4 Se w e r / W a s t e w a t e r 1, 3 6 1 , 1 2 5 1, 3 9 8 , 9 2 5 1, 4 7 0 , 4 5 2 1, 5 0 8 , 3 2 5 1, 5 5 7 , 7 5 8 1, 6 1 5 , 8 4 0 2, 2 2 3 , 8 7 6 2, 4 8 0 , 0 0 8 2, 5 6 6 , 6 7 6 2, 6 3 6 , 7 0 7 Re f u s e c o n t r a c t 2, 5 8 7 , 4 1 0 2, 8 1 2 , 5 9 5 2, 9 9 6 , 2 7 5 2, 9 6 8 , 7 4 2 2, 9 3 3 , 3 9 0 3, 0 6 2 , 7 0 0 2, 9 7 6 , 9 4 6 2, 9 5 4 , 8 4 2 3, 0 5 8 , 9 5 6 3, 1 4 5 , 3 9 6 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s - - - - 8 4 - - - - - To t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m r e v e n u e s 56 , 9 2 4 , 7 5 4 56 , 3 9 9 , 3 2 3 56 , 9 6 6 , 5 5 0 53 , 7 7 9 , 1 1 3 55 , 8 2 8 , 3 0 3 61 , 6 4 7 , 9 3 7 66 , 2 2 5 , 5 8 8 69 , 4 1 6 , 9 7 9 72 , 3 8 9 , 6 2 2 73 , 5 1 9 , 7 6 4 To t a l p r i m a r y g o v e r n m e n t pr o g r a m r e v e n u e s 66 , 0 9 1 , 3 3 8 $ 66 , 5 1 6 , 0 0 2 $ 67 , 4 0 2 , 9 0 8 $ 66 , 1 6 3 , 2 4 9 $ 67 , 5 8 2 , 7 1 3 $ 73 , 2 5 6 , 2 3 8 $ 77 , 9 4 2 , 4 8 6 $ 81 , 9 3 5 , 9 4 4 $ 86 , 4 2 1 , 6 4 9 $ 97 , 3 3 7 , 0 5 3 $ Ex p e n s e s : Go v e r n m e n t a l a c t i v i t i e s : Ge n e r a l g o v e r n m e n t 12 , 4 3 0 , 0 2 2 $ 9, 9 6 6 , 7 3 4 $ 11 , 5 8 2 , 3 5 7 $ 15 , 0 4 7 , 0 1 3 $ 16 , 3 6 8 , 3 3 7 $ 12 , 1 9 8 , 9 9 1 $ 10 , 5 3 7 , 7 2 2 $ 7, 1 6 8 , 7 0 7 $ 7, 1 6 9 , 7 1 0 $ 7, 8 3 4 , 3 9 1 $ Pu b l i c s a f e t y 15 , 4 4 2 , 4 1 7 17 , 1 0 1 , 2 1 5 18 , 7 7 2 , 8 6 5 20 , 4 5 9 , 2 6 5 19 , 4 5 8 , 7 9 5 20 , 1 8 7 , 9 1 4 20 , 4 4 9 , 0 7 7 20 , 0 7 7 , 8 6 8 21 , 0 8 2 , 4 2 0 21 , 2 7 9 , 6 4 3 Co m m u n i t y d e v e l o p m e n t 2, 9 5 1 , 3 0 7 10 , 4 6 7 , 8 4 8 4, 1 7 8 , 4 4 9 5, 6 9 0 , 4 5 8 4, 0 4 1 , 5 1 6 3, 4 7 2 , 2 3 7 3, 2 7 2 , 4 0 1 3, 0 5 3 , 9 5 0 2, 5 6 9 , 2 8 4 2, 3 8 4 , 3 0 8 Pa r k s a n d r e c r e a t i o n 3, 1 9 2 , 3 7 3 3, 4 1 2 , 9 1 8 3, 7 3 7 , 7 9 1 4, 0 8 3 , 5 6 5 3, 9 5 0 , 7 8 6 4, 1 8 4 , 6 2 6 4, 1 4 6 , 2 4 5 3, 4 5 3 , 4 6 9 3, 7 5 2 , 5 1 8 3, 8 7 8 , 9 6 1 Pu b l i c w o r k s 2, 9 0 2 , 1 8 9 3, 4 1 8 , 4 9 3 5, 4 9 4 , 8 8 7 4, 5 7 7 , 4 3 5 4, 6 8 8 , 5 3 7 5, 5 3 9 , 8 6 6 8, 8 1 8 , 0 8 3 4, 1 7 3 , 5 0 2 5, 3 5 6 , 6 9 4 5, 0 1 9 , 1 5 2 In t e r e s t o n l o n g - t e r m d e b t 2, 7 5 6 , 9 7 8 3, 4 3 7 , 2 3 1 4, 7 5 7 , 0 6 8 6, 2 2 4 , 6 3 8 7, 2 7 4 , 7 2 3 7, 3 8 0 , 5 9 8 2, 2 4 4 , 3 1 5 47 1 , 8 3 5 1, 3 3 0 , 5 5 5 69 9 , 1 5 5 To t a l g o v e r n m e n t a l a c t i v i t i e s ex p e n s e s 39 , 6 7 5 , 2 8 6 47 , 8 0 4 , 4 3 9 48 , 5 2 3 , 4 1 7 56 , 0 8 2 , 3 7 4 55 , 7 8 2 , 6 9 4 52 , 9 6 4 , 2 3 2 49 , 4 6 7 , 8 4 3 38 , 3 9 9 , 3 3 1 41 , 2 6 1 , 1 8 1 41 , 0 9 5 , 6 1 0 Bu s i n e s s - t y p e a c t i v i t i e s : Wa t e r 12 , 1 9 2 , 7 8 8 15 , 6 8 1 , 3 8 4 18 , 4 7 3 , 6 8 9 17 , 2 2 5 , 0 8 8 19 , 1 1 4 , 8 4 3 19 , 6 8 0 , 7 1 9 19 , 3 6 4 , 3 5 5 19 , 1 9 9 , 1 2 0 18 , 3 4 5 , 2 2 7 21 , 4 9 7 , 2 7 1 El e c t r i c 36 , 5 7 8 , 6 0 2 34 , 7 1 3 , 2 7 0 38 , 8 2 7 , 6 3 7 36 , 9 3 9 , 3 0 1 39 , 8 0 3 , 6 9 0 40 , 0 8 3 , 6 8 0 39 , 1 1 5 , 1 6 1 44 , 0 4 0 , 1 9 3 45 , 0 1 1 , 5 5 0 44 , 3 2 8 , 6 7 9 Se w e r / W a s t e w a t e r 1, 2 6 7 , 3 2 7 1, 6 0 4 , 5 5 7 1, 6 5 3 , 0 4 3 1, 9 9 5 , 7 8 5 1, 9 8 6 , 1 4 2 1, 9 8 2 , 2 4 1 2, 0 8 3 , 7 5 6 4, 8 2 8 , 6 8 0 2, 4 3 4 , 2 9 5 2, 3 6 8 , 1 2 4 Re f u s e c o n t r a c t 2, 6 4 2 , 7 8 0 2, 9 1 8 , 7 3 2 3, 2 4 7 , 7 3 4 3, 0 2 8 , 2 7 0 2, 9 2 4 , 3 0 3 2, 9 6 2 , 3 9 5 2, 8 5 1 , 8 8 2 2, 8 3 5 , 0 4 1 2, 9 3 8 , 2 5 5 3, 0 4 2 , 3 3 7 To t a l b u s i n e s s - t y p e a c t i v i t i e s ex p e n s e s 52 , 6 8 1 , 4 9 7 54 , 9 1 7 , 9 4 3 62 , 2 0 2 , 1 0 3 59 , 1 8 8 , 4 4 4 63 , 8 2 8 , 9 7 8 64 , 7 0 9 , 0 3 5 63 , 4 1 5 , 1 5 4 70 , 9 0 3 , 0 3 4 68 , 7 2 9 , 3 2 7 71 , 2 3 6 , 4 1 1 To t a l p r i m a r y g o v e r n m e n t pr o g r a m e x p e n s e s 92 , 3 5 6 , 7 8 3 10 2 , 7 2 2 , 3 8 2 11 0 , 7 2 5 , 5 2 0 11 5 , 2 7 0 , 8 1 8 11 9 , 6 1 1 , 6 7 2 11 7 , 6 7 3 , 2 6 7 11 2 , 8 8 2 , 9 9 7 10 9 , 3 0 2 , 3 6 5 10 9 , 9 9 0 , 5 0 8 11 2 , 3 3 2 , 0 2 1 Ne t r e v e n u e s ( e x p e n s e s ) : Go v e r n m e n t a l a c t i v i t i e s (3 0 , 5 0 8 , 7 0 2 ) (3 7 , 6 8 7 , 7 6 0 ) (3 8 , 0 8 7 , 0 5 9 ) (4 1 , 4 9 1 , 5 2 0 ) (4 4 , 0 2 8 , 2 8 4 ) (4 1 , 3 5 5 , 9 3 1 ) (3 7 , 7 5 0 , 9 4 5 ) (2 5 , 8 8 0 , 3 6 6 ) (2 7 , 2 2 9 , 1 5 4 ) (1 7 , 2 7 8 , 3 2 1 ) Bu s i n e s s - t y p e a c t i v i t i e s 4, 2 4 3 , 2 5 7 1, 4 8 1 , 3 8 0 (5 , 2 3 5 , 5 5 3 ) (5 , 4 0 9 , 3 3 1 ) (8 , 0 0 0 , 6 7 5 ) (3 , 0 6 1 , 0 9 8 ) 2, 8 1 0 , 4 3 4 (1 , 4 8 6 , 0 5 5 ) 3, 6 6 0 , 2 9 5 2, 2 8 3 , 3 5 3 To t a l n e t r e v e n u e s ( e x p e n s e s ) (2 6 , 2 6 5 , 4 4 5 ) (3 6 , 2 0 6 , 3 8 0 ) (4 3 , 3 2 2 , 6 1 2 ) (4 6 , 9 0 0 , 8 5 1 ) (5 2 , 0 2 8 , 9 5 9 ) (4 4 , 4 1 7 , 0 2 9 ) (3 4 , 9 4 0 , 5 1 1 ) (2 7 , 3 6 6 , 4 2 1 ) (2 3 , 5 6 8 , 8 5 9 ) (1 4 , 9 9 4 , 9 6 8 ) CI T Y O F A Z U S A Ta b l e 2 - C h a n g e s i n N e t P o s i t i o n La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s ) Fi s c a l Y e a r 142 (C o n t i n u e d ) 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Ge n e r a l r e v e n u e s a n d o t h e r ch a n g e s i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s : Ta x e s : Pr o p e r t y t a x e s , g e n e r a l p u r p o s e 9, 7 3 7 , 0 4 1 $ 11 , 0 4 4 , 3 3 5 $ 10 , 3 7 2 , 5 2 9 $ 13 , 5 1 8 , 2 5 3 $ 10 , 0 3 2 , 9 7 9 $ 12 , 1 0 8 , 1 5 5 $ 9, 8 5 6 , 3 5 4 $ 8, 3 1 2 , 3 5 1 $ 8, 0 2 3 , 5 4 7 $ 8, 5 3 1 , 5 1 5 $ Tr a n s i e n t o c c u p a n c y t a x e s 24 2 , 5 8 1 23 4 , 4 2 7 24 3 , 2 6 1 22 6 , 2 6 8 20 0 , 8 4 0 19 2 , 6 5 9 21 0 , 9 2 3 22 4 , 3 5 9 22 3 , 6 7 5 26 1 , 8 1 5 Sa l e s t a x 5, 4 5 2 , 6 5 2 6, 0 2 5 , 7 5 6 6, 3 2 8 , 9 6 2 6, 2 0 2 , 3 3 5 4, 7 1 6 , 3 0 5 5, 6 7 8 , 1 7 7 6, 2 3 4 , 6 1 4 6, 9 0 4 , 4 0 0 7, 1 8 3 , 8 0 9 7, 5 3 0 , 2 5 7 Fr a n c h i s e t a x e s 5, 2 7 5 , 9 7 2 5, 5 4 4 , 5 9 4 5, 6 5 4 , 8 9 6 5, 8 2 1 , 9 7 6 5, 5 9 5 , 4 2 3 6, 2 2 2 , 5 3 7 6, 3 5 5 , 8 2 8 6, 5 2 6 , 4 9 6 6, 7 5 7 , 7 0 8 7, 3 2 8 , 9 7 7 Bu s i n e s s l i c e n s e s t a x e s 1, 5 3 7 , 4 4 2 1, 6 3 7 , 7 7 5 1, 6 4 0 , 4 2 5 1, 7 5 5 , 8 3 1 1, 8 2 9 , 5 0 3 1, 8 2 2 , 1 0 2 1, 8 6 5 , 1 9 5 1, 9 8 3 , 6 3 4 1, 9 2 2 , 1 3 9 2, 0 0 8 , 9 1 6 Ut i l i t y U s e r s t a x 3, 0 8 6 , 5 8 9 3, 2 8 9 , 2 1 0 3, 3 0 2 , 4 4 2 3, 2 6 0 , 1 9 1 3, 0 5 9 , 1 2 1 3, 1 6 0 , 7 8 8 3, 2 5 0 , 4 6 9 3, 3 0 5 , 5 4 5 3, 4 4 1 , 1 7 8 3, 5 9 4 , 0 9 2 Ot h e r t a x e s 4, 5 0 4 , 3 5 5 4, 7 9 8 , 6 9 9 1, 3 9 7 , 6 1 8 1, 1 3 1 , 8 8 5 1, 1 0 2 , 3 3 9 2, 6 7 8 , 7 2 7 1, 2 7 2 , 9 6 7 1, 9 6 3 , 9 0 4 1, 7 6 3 , 0 3 8 2, 0 5 8 , 9 6 7 Mo t o r v e h i c l e i n l i e u - u n r e s t r i c t e d 95 , 4 7 0 32 6 , 1 0 1 23 2 , 9 8 9 15 7 , 0 1 2 13 7 , 5 5 7 14 3 , 4 0 1 42 0 , 1 2 6 25 , 2 2 4 20 , 8 7 6 - In v e s t m e n t i n c o m e 2, 4 8 9 , 0 9 4 4, 3 2 2 , 5 9 4 3, 9 3 2 , 5 4 0 3, 9 6 7 , 5 4 9 2, 9 1 4 , 7 9 0 2, 5 4 0 , 1 3 3 1, 2 8 4 , 4 8 4 16 6 , 6 7 4 (4 2 3 , 8 9 8 ) 35 3 , 2 8 5 Ot h e r g e n e r a l r e v e n u e s 13 1 , 9 1 7 37 3 , 0 6 3 2, 7 0 2 , 6 8 0 70 7 , 5 3 6 44 1 , 9 5 6 85 4 , 9 4 5 (5 0 , 0 6 8 ) 27 9 , 4 4 7 75 9 , 1 3 2 62 9 , 5 0 7 - - - - - - 5 9 , 9 3 3 , 8 3 2 - - (4 , 1 1 3 , 0 6 5 ) Tr a n s f e r s 66 4 , 2 0 6 70 0 , 0 0 0 4, 3 9 2 , 8 4 6 2, 2 4 9 , 3 8 7 1, 3 8 6 , 3 8 0 1, 3 2 6 , 3 7 4 1, 0 8 2 , 2 6 2 1, 3 0 9 , 8 0 8 1, 5 3 5 , 9 9 6 1, 4 5 8 , 0 2 8 To t a l g o v e r n m e n t a l a c t i v i t i e s 33 , 2 1 7 , 3 1 9 38 , 2 9 6 , 5 5 4 40 , 2 0 1 , 1 8 8 38 , 9 9 8 , 2 2 3 31 , 4 1 7 , 1 9 3 36 , 7 2 7 , 9 9 8 91 , 7 1 6 , 9 8 6 31 , 0 0 1 , 8 4 2 31 , 2 0 7 , 2 0 0 29 , 6 4 2 , 2 9 4 Bu s i n e s s - t y p e a c t i v i t i e s : Pr o p e r t y t a x e s , g e n e r a l p u r p o s e 63 8 , 8 2 1 59 4 , 0 6 5 63 1 , 0 3 6 58 6 , 2 5 4 55 5 , 1 2 1 57 1 , 0 3 6 55 5 , 2 2 5 55 6 , 1 6 1 54 2 , 4 0 9 57 4 , 1 7 9 In v e s t m e n t i n c o m e 2, 6 1 9 , 0 9 0 4, 2 3 6 , 6 4 5 4, 9 5 4 , 3 6 7 2, 5 7 9 , 9 7 3 6, 2 0 1 , 2 8 9 1, 6 2 6 , 2 9 1 25 7 , 6 5 3 11 5 , 3 8 0 30 0 , 5 1 5 37 8 , 7 1 3 Ga i n o n s a l e o f a s s e t s 18 3 , 8 2 9 - ( 3 8 , 3 7 3 ) 79 7 2, 3 0 6 1, 3 5 0 (1 , 9 6 6 , 0 0 3 ) (3 , 6 9 0 ) - - Tr a n s f e r s (6 6 4 , 2 0 6 ) (7 0 0 , 0 0 0 ) (4 , 3 9 2 , 8 4 6 ) (2 , 2 4 9 , 3 8 7 ) (1 , 3 8 6 , 3 8 0 ) (1 , 3 2 6 , 3 7 4 ) (1 , 0 8 2 , 2 6 2 ) (1 , 3 0 9 , 8 0 8 ) (1 , 5 3 5 , 9 9 6 ) (1 , 4 5 8 , 0 2 8 ) Mi s c e l l a n e o u s 27 3 , 2 9 6 2, 6 7 6 , 8 8 2 1, 8 4 1 , 3 0 6 1, 2 3 0 , 8 3 5 1, 3 3 6 , 1 6 8 35 8 , 8 9 1 88 4 , 5 3 5 35 9 , 5 7 3 39 9 , 2 9 3 22 4 , 6 8 0 To t a l b u s i n e s s - t y p e a c t i v i t i e s 3, 0 5 0 , 8 3 0 6, 8 0 7 , 5 9 2 2, 9 9 5 , 4 9 0 2, 1 4 8 , 4 7 2 6, 7 0 8 , 5 0 4 1, 2 3 1 , 1 9 4 (1 , 3 5 0 , 8 5 2 ) (2 8 2 , 3 8 4 ) (2 9 3 , 7 7 9 ) (2 8 0 , 4 5 6 ) To t a l g e n e r a l r e v e n u e s 36 , 2 6 8 , 1 4 9 45 , 1 0 4 , 1 4 6 43 , 1 9 6 , 6 7 8 41 , 1 4 6 , 6 9 5 38 , 1 2 5 , 6 9 7 37 , 9 5 9 , 1 9 2 90 , 3 6 6 , 1 3 4 30 , 7 1 9 , 4 5 8 30 , 9 1 3 , 4 2 1 29 , 3 6 1 , 8 3 8 Ch a n g e s i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s 2, 7 0 8 , 6 1 7 60 8 , 7 9 4 2, 1 1 4 , 1 2 9 (2 , 4 9 3 , 2 9 7 ) (1 2 , 6 1 1 , 0 9 1 ) (4 , 6 2 7 , 9 3 3 ) 53 , 9 6 6 , 0 4 1 5, 1 2 1 , 4 7 6 3, 9 7 8 , 0 4 6 12 , 3 6 3 , 9 7 3 Bu s i n e s s - t y p e a c t i v i t i e s 7, 2 9 4 , 0 8 7 8, 2 8 8 , 9 7 2 (2 , 2 4 0 , 0 6 3 ) (3 , 2 6 0 , 8 5 9 ) (1 , 2 9 2 , 1 7 1 ) (1 , 8 2 9 , 9 0 4 ) 1, 4 5 9 , 5 8 2 (1 , 7 6 8 , 4 3 9 ) 3, 3 6 6 , 5 1 6 2, 0 0 2 , 8 9 7 To t a l p r i m a r y g o v e r n m e n t 10 , 0 0 2 , 7 0 4 $ 8, 8 9 7 , 7 6 6 $ (1 2 5 , 9 3 4 ) $ (5 , 7 5 4 , 1 5 6 ) $ (1 3 , 9 0 3 , 2 6 2 ) $ (6 , 4 5 7 , 8 3 7 ) $ 55 , 4 2 5 , 6 2 3 $ 3, 3 5 3 , 0 3 7 $ 7, 3 4 4 , 5 6 2 $ 14 , 3 6 6 , 8 7 0 $ Th e C i t y o f A z u s a i m p l e m e n t e d G A S B 3 4 f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 3 . In f o r m a t i o n p r i o r t o t h e i m p l e m e n t a t i o n o f G A S B 3 4 i s n o t a v a i l a b l e . So u r c e : C i t y o f Az u s a F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 2 - C h a n g e s i n N e t P o s i t i o n (C o n t i n u e d ) La s t T e n F i s c a l Y e a r s ( a c c r u a l b a s i s ) Ex t r a o r d i n a r y g a i n / ( l o s s o n d i s s o l u t i o n of r e d e v e l o p m e n t a g e n c y Fi s c a l Y e a r 143 Ta b l e 3 - F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 Ge n e r a l f u n d : Re s e r v e d 15 0 , 7 0 0 $ 1 4 2 , 1 3 6 $ 1 9 6 , 0 9 5 $ 5 0 0 , 3 8 9 $ 5, 8 2 7 , 2 9 4 $ Un r e s e r v e d 11 , 6 4 4 , 3 8 7 1 4 , 2 2 5 , 7 8 3 1 3 , 7 5 3 , 6 6 7 1 1 , 9 1 4 , 8 6 7 3, 7 7 7 , 7 5 3 To t a l g e n e r a l f u n d 11 , 7 9 5 , 0 8 7 $ 1 4 , 3 6 7 , 9 1 9 $ 1 3 , 9 4 9 , 7 6 2 $ 1 2 , 4 1 5 , 2 5 6 $ 9 , 6 0 5 , 0 4 7 $ Al l o t h e r g o v e r n m e n t a l f u n d s : Re s e r v e d 3, 2 3 6 , 0 9 7 $ 1 7 , 8 7 3 , 0 1 1 $ 2 3 , 0 6 9 , 6 4 0 $ 4 3 , 4 8 9 , 2 7 6 $ 47 , 4 7 2 , 5 6 4 $ Un r e s e r v e d , r e p o r t e d i n : Sp e c i a l r e v e n u e f u n d s 13 , 1 2 0 , 0 5 9 1 3 , 6 7 1 , 4 7 2 1 5 , 6 1 6 , 8 4 1 2 1 , 4 9 1 , 6 2 4 13 , 0 2 2 , 2 9 9 Ca p i t a l p r o j e c t s f u n d s 3, 0 1 0 , 0 7 4 2 , 4 8 7 , 6 5 5 1 , 9 0 4 , 4 5 7 1 , 3 2 0 , 5 5 0 1, 0 4 5 , 2 7 9 De b t s e r v i c e f u n d s 50 2 , 2 2 3 4 9 3 , 1 8 8 5 0 2 , 2 4 4 4 8 2 , 9 1 5 48 2 , 5 4 8 Re d e v e l o p m e n t a g e n c y (6 , 0 8 4 , 3 8 3 ) ( 3 0 , 7 4 8 , 2 0 9 ) ( 2 3 , 3 0 7 , 8 9 0 ) ( 3 6 , 1 2 9 , 5 6 2 ) (4 2 , 7 0 9 , 3 5 9 ) Un a s s i g n e d To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 13 , 7 8 4 , 0 7 0 $ 3 , 7 7 7 , 1 1 7 $ 1 7 , 7 8 5 , 2 9 2 $ 3 0 , 6 5 4 , 8 0 3 $ 1 9 , 3 1 3 , 3 3 1 $ Ge n e r a l f u n d : 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 No n s p e n d a b l e 21 , 6 1 5 , 2 6 3 $ 20 , 9 5 1 , 4 6 8 $ 20 , 9 9 3 , 6 7 3 $ 20 , 9 2 7 , 9 4 4 $ 16 , 7 9 4 , 9 2 5 $ Un a s s i g n e d (5 , 3 1 1 , 3 0 4 ) ( 5 , 8 1 7 , 3 1 2 ) ( 4 , 6 9 0 , 9 2 8 ) ( 5 0 9 , 9 9 6 ) 2, 7 5 2 , 2 5 7 To t a l g e n e r a l f u n d : 16 , 3 0 3 , 9 5 9 $ 1 5 , 1 3 4 , 1 5 6 $ 1 6 , 3 0 2 , 7 4 5 $ 2 0 , 4 1 7 , 9 4 8 $ 1 9 , 5 4 7 , 1 8 2 $ Al l o t h e r g o v e r n m e n t a l f u n d s : No n s p e n d a b l e 14 , 8 9 2 , 5 5 1 $ 8 , 0 3 8 $ 2 3 , 7 2 9 $ 1 1 , 3 6 3 $ - $ Re s t r i c t e d 23 , 2 9 7 , 5 9 9 1 1 , 0 6 2 , 0 7 4 9 , 0 0 5 , 0 7 0 9 , 2 2 2 , 1 6 6 10 , 5 0 2 , 8 5 1 Un a s s i g n e d (3 2 , 6 2 5 , 0 3 8 ) ( 1 8 7 , 4 6 7 ) ( 3 7 6 , 8 7 0 ) ( 1 2 5 , 5 7 6 ) (5 , 8 7 8 ) To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 5, 5 6 5 , 1 1 2 $ 1 0 , 8 8 2 , 6 4 5 $ 8 , 6 5 1 , 9 2 9 $ 9 , 1 0 7 , 9 5 3 $ 1 0 , 4 9 6 , 9 7 3 $ GA S B S t a t e m e n t N o . 5 4 - F u n d B a l a n c e R e p o r t i n g a n d G o v e r n m e n t F u n d T y p e D e f i n i t i o n , w a s i m p l e m e n t e d i n f i s c a l y e a r 2 0 1 0 - 2 0 1 1 . So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t Fi s c a l Y e a r CI T Y O F A Z U S A La s t T e n F i s c a l Y e a r s ( m o d i f i e d a c c r u a l b a s i s ) Fi s c a l Y e a r 144 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Re v e n u e s : Ta x e s 26 , 3 8 7 , 8 0 5 $ 28 , 9 8 4 , 0 7 2 $ 29 , 1 9 0 , 3 0 5 $ 31 , 2 6 5 , 0 6 7 $ 27 , 0 3 3 , 8 5 9 $ 32 , 2 0 6 , 9 5 4 $ 29 , 3 5 3 , 6 2 6 $ 29 , 1 8 0 , 3 8 2 $ 29 , 2 6 6 , 3 8 7 $ 31 , 3 1 4 , 5 3 9 $ As s e s s m e n t s 2 , 1 6 6 , 4 3 5 2 , 6 3 8 , 2 9 3 2, 6 6 1 , 6 1 8 2, 9 3 0 , 8 9 7 3, 0 2 7 , 0 1 6 3, 0 9 8 , 2 1 9 2, 2 0 1 , 1 1 7 1, 6 0 5 , 0 2 8 2, 2 1 6 , 8 3 0 1, 2 9 9 , 7 1 3 Li c e n s e s a n d p e r m i t s 4 3 3 , 6 7 3 4 8 1 , 9 9 4 53 2 , 7 7 5 38 1 , 9 9 3 47 2 , 3 8 9 61 0 , 2 9 8 1, 2 7 0 , 2 2 1 1, 3 6 9 , 9 0 1 1, 5 8 6 , 1 1 7 1, 6 0 0 , 1 0 9 In t e r g o v e r n m e n t a l 3 , 6 1 7 , 1 5 2 3 , 6 0 9 , 1 6 9 3, 3 8 7 , 0 7 4 5, 9 6 0 , 1 0 3 4, 0 6 4 , 9 5 1 3, 8 2 9 , 5 1 3 3, 4 8 2 , 4 9 9 2, 8 5 6 , 2 1 0 4, 4 6 9 , 7 4 8 4, 6 7 4 , 6 8 8 Ch a r g e s f o r s e r v i c e s 2 , 4 8 4 , 5 1 3 2 , 5 6 5 , 9 7 4 3, 0 0 8 , 5 2 4 2, 7 3 4 , 7 7 3 3, 1 8 5 , 6 6 0 3, 0 5 9 , 3 6 9 3, 3 9 9 , 2 7 6 3, 2 8 8 , 1 0 9 4, 3 9 6 , 9 9 4 4, 6 4 7 , 2 5 5 De v e l o p e r p a r t i c i p a t i o n - - - - - 1 , 2 9 7 , 5 8 0 - - - - In v e s t m e n t i n c o m e 1, 2 9 4 , 5 0 8 3, 2 0 5 , 5 6 1 2, 7 6 5 , 2 1 9 1, 8 5 9 , 4 2 4 1, 3 3 5 , 9 2 2 99 4 , 6 2 1 87 2 , 1 1 8 15 7 , 0 2 2 13 1 , 5 1 5 34 6 , 2 6 6 Fi n e s a n d f o r f e i t u r e s 5 5 6 , 7 7 6 8 1 5 , 5 5 8 89 7 , 8 1 6 96 7 , 0 1 2 1, 1 0 4 , 7 1 5 11 9 , 1 1 1 97 8 , 8 2 9 98 9 , 6 1 6 1, 3 4 3 , 3 1 8 1, 3 4 3 , 8 0 9 Co n t r i b u t i o n s 1 5 4 , 6 3 6 1 0 6 , 5 9 2 99 , 2 1 1 10 6 , 4 5 0 11 3 , 3 6 3 15 7 , 9 3 0 10 9 , 2 5 5 64 , 4 6 1 84 , 8 7 0 10 , 8 6 4 , 4 8 5 Mi s c e l l a n e o u s 1 6 6 , 6 7 7 4 2 2 , 3 1 3 3, 0 0 1 , 9 3 8 71 3 , 5 4 7 57 3 , 0 0 8 - 1 , 4 9 2 , 0 3 8 38 4 , 3 8 2 87 0 , 1 9 9 67 8 , 6 2 3 To t a l R e v e n u e s 3 7 , 2 6 2 , 1 7 5 4 2 , 8 2 9 , 5 2 6 45 , 5 4 4 , 4 8 0 46 , 9 1 9 , 2 6 6 40 , 9 1 0 , 8 8 3 45 , 3 7 3 , 5 9 5 43 , 1 5 8 , 9 7 9 39 , 8 9 5 , 1 1 1 44 , 3 6 5 , 9 7 8 56 , 7 6 9 , 4 8 7 Ex p e n d i t u r e s : Cu r r e n t : Ge n e r a l g o v e r n m e n t 9 , 7 0 1 , 3 5 2 9 , 0 7 0 , 9 6 7 1 1 , 1 3 6 , 4 2 0 1 2 , 4 9 0 , 5 8 5 14 , 2 4 8 , 8 8 1 10 , 6 2 3 , 6 2 3 10 , 0 7 0 , 7 1 3 7, 1 6 8 , 7 0 7 6, 7 6 2 , 4 6 7 6, 6 8 4 , 7 2 4 Pu b l i c s a f e t y 15 , 1 1 1 , 8 5 4 1 6 , 8 1 3 , 6 9 9 18 , 5 3 4 , 1 2 6 26 , 9 4 8 , 7 9 3 19 , 1 4 4 , 1 6 9 19 , 8 2 4 , 3 6 9 20 , 3 7 9 , 6 7 2 20 , 0 7 7 , 8 6 8 20 , 8 7 7 , 0 9 0 21 , 7 7 9 , 0 6 9 Co m m u n i t y d e v e l o p m e n t 2 , 9 4 8 , 6 8 3 1 0 , 4 5 5 , 7 0 4 4, 1 6 6 , 2 2 3 5, 1 9 1 , 9 3 2 3, 2 7 1 , 6 7 2 3, 4 2 3 , 2 2 4 3, 2 2 3 , 2 0 1 3, 0 5 3 , 9 5 0 2, 5 6 4 , 9 1 5 2, 3 6 4 , 5 5 8 Pa r k s a n d r e c r e a t i o n 2 , 9 0 2 , 6 0 3 3 , 0 5 4 , 9 6 4 3, 3 8 8 , 2 1 8 3, 6 0 7 , 8 3 8 3, 5 1 9 , 6 2 6 3, 7 2 9 , 1 2 5 3, 7 7 0 , 4 6 5 3, 4 5 3 , 4 6 9 3, 5 6 1 , 4 9 1 3, 5 8 9 , 9 5 2 Pu b l i c W o r k s 2 , 7 7 2 , 4 3 7 2 , 9 6 4 , 7 4 9 3, 6 6 6 , 0 1 0 3, 8 4 7 , 8 2 2 3, 9 6 3 , 8 2 0 4, 2 0 4 , 1 8 0 7, 3 5 8 , 6 4 4 4, 1 7 3 , 5 0 2 4, 2 4 5 , 2 7 3 4, 0 3 3 , 3 5 2 Ca p i t a l O u t l a y 2 , 9 8 2 , 7 5 6 3 , 3 3 3 , 9 3 4 4, 8 4 7 , 7 8 6 3, 4 9 3 , 0 9 6 2, 8 0 4 , 3 4 5 2, 7 6 2 , 6 9 8 1, 5 5 4 , 1 5 1 2, 3 4 8 , 6 2 4 2, 2 0 4 , 4 8 2 1, 7 2 5 , 1 7 6 De b t s e r v i c e : Pr i n c i p a l r e t i r e m e n t 1 , 0 8 5 , 0 0 0 1 , 1 0 0 , 0 0 0 91 5 , 0 0 0 1, 3 5 5 , 0 0 0 2, 0 2 0 , 0 0 0 2, 4 9 4 , 2 1 2 2, 6 1 5 , 7 1 7 1, 4 7 9 , 3 6 7 1, 7 0 6 , 9 9 6 12 , 1 6 0 , 2 8 6 In t e r e s t a n d f i s c a l c h a r g e s 2 , 6 2 4 , 1 1 3 3 , 3 1 9 , 4 7 1 4, 3 9 2 , 1 7 8 5, 2 9 8 , 8 2 0 7, 1 1 5 , 4 2 5 7, 2 9 5 , 6 8 0 2, 5 3 7 , 6 6 5 47 1 , 8 3 5 40 1 , 2 6 5 41 7 , 4 5 9 Pa s s - t h r o u g h a g r e e m e n t p a y m e n t s - - - - - - - - - - - - 7 1 8 , 2 3 7 8 7 8 , 5 8 1 - - - - - - To t a l E x p e n d i t u r e s 40 , 1 2 8 , 7 9 8 50 , 1 1 3 , 4 8 8 51 , 7 6 4 , 1 9 8 63 , 1 1 2 , 4 6 7 56 , 0 8 7 , 9 3 8 54 , 3 5 7 , 1 1 1 51 , 5 1 0 , 2 2 8 42 , 2 2 7 , 3 2 2 42 , 3 2 3 , 9 7 9 52 , 7 5 4 , 5 7 6 Ex c e s s ( D e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 2 , 8 6 6 , 6 2 3 ) ( 7 , 2 8 3 , 9 6 2 ) (6 , 2 1 9 , 7 1 8 ) (1 6 , 1 9 3 , 2 0 1 ) (1 5 , 1 7 7 , 0 5 5 ) (8 , 9 8 3 , 5 1 6 ) (8 , 3 5 1 , 2 4 9 ) (2 , 3 3 2 , 2 1 1 ) 2, 0 4 1 , 9 9 9 4, 0 1 4 , 9 1 1 Ot h e r F i n a n c i n g S o u r c e s ( U s e s ) : Tr a n s f e r i n 12 , 5 1 3 , 8 3 5 8, 8 9 1 , 4 3 3 51 , 4 2 2 , 8 0 8 25 , 9 2 5 , 0 6 7 10 , 7 1 0 , 7 7 5 24 , 5 6 9 , 6 2 9 5, 9 0 0 , 6 3 2 6, 0 0 3 , 1 5 6 6, 3 1 0 , 3 9 4 6, 1 7 4 , 7 4 9 Tr a n s f e r o u t ( 1 1 , 8 4 9 , 6 2 9 ) ( 9 , 2 0 8 , 3 0 3 ) (4 7 , 1 7 9 , 9 1 2 ) (2 3 , 6 7 5 , 6 8 0 ) (9 , 3 6 2 , 5 9 5 ) (2 3 , 8 4 1 , 2 3 9 ) (4 , 8 1 8 , 3 7 0 ) (4 , 7 0 5 , 8 2 7 ) (4 , 7 7 7 , 2 6 9 ) (5 , 5 6 9 , 2 3 5 ) No t e s a n d l o a n s i s s u e d 2 3 2 , 0 3 8 1 6 6 , 7 1 1 20 , 8 2 0 , 1 8 2 25 , 8 7 9 , 9 2 4 39 1 , 8 6 7 98 6 , 3 1 4 1, 3 0 5 , 8 9 2 - - - Ot h e r f i n a n c i n g s o u r c e s - - ( 4 , 9 3 5 , 0 0 0 ) (3 2 3 , 4 1 0 ) - - - - - - To t a l O t h e r F i n a n c i n g S o u r c e s ( U s e s ) 8 9 6 , 2 4 4 ( 1 5 0 , 1 5 9 ) 2 0 , 1 2 8 , 0 7 8 2 7 , 8 0 5 , 9 0 1 1, 7 4 0 , 0 4 7 1, 7 1 4 , 7 0 4 2, 3 8 8 , 1 5 4 1, 2 9 7 , 3 2 9 1, 5 3 3 , 1 2 5 60 5 , 5 1 4 Ex t r a o r d i n a r y g a i n / ( l o s s ) o n d i s s o l u t i o n o f r e d e v e l o p m e n t a g e n c y - - - - - - 1 0 , 0 8 7 , 9 9 9 - - (4 , 1 1 3 , 0 6 5 ) Ne t c h a n g e i n f u n d b a l a n c e s (1 , 9 7 0 , 3 7 9 ) $ (7 , 4 3 4 , 1 2 1 ) $ 13 , 9 0 8 , 3 6 0 $ 11 , 6 1 2 , 7 0 0 $ (1 3 , 4 3 7 , 0 0 8 ) $ (7 , 2 6 8 , 8 1 2 ) $ 4, 1 2 4 , 9 0 4 $ (1 , 0 3 4 , 8 8 2 ) $ 3, 5 7 5 , 1 2 4 $ 50 7 , 3 6 0 $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 1 0 . 0 % 9 . 4 % 1 1 . 3 % 1 1 . 2 % 1 7 . 1 % 1 9 . 0 % 1 0 . 3 % 4 . 9 % 5 . 3 % 2 4 . 6 % So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t Bo n d i s s u a n c e c o s t s CI T Y O F A Z U S A Ta b l e 4 - C h a n g e s i n F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s La s t T e n F i s c a l Y e a r s ( m o d i f i e d a c c r u a l b a s i s ) Fi s c a l Y e a r 145 Fiscal Year Residential Commercial/ Industrial Other Total 2006 8,658,939$ 17,607,907$ 1,147,509$ 27,414,355$ 2007 9,664,916 18,376,638 1,250,079 29,291,633 2008 10,070,006 19,258,199 1,202,641 30,530,846 2009 10,180,795 19,429,530 1,136,677 30,747,002 2010 10,055,529 19,362,315 1,141,500 30,559,344 2011 10,605,804 21,041,098 1,238,881 32,885,783 2012 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 2015 12,995,948 24,356,790 1,516,934 38,869,672 Source: City of Azusa Light & Water Department Type of Customer City of Azusa Table 5 - Light Department Electricity Sold by Type of Customer Last Ten Fiscal Years 146 Fiscal Monthly Rate per Rate per Year Ended Base 0 - 250 >250 June 30 Rate kWh kWh 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 2015 3.81 0.1160 0.1487 NOTE: Source: City of Azusa Light & Water Department City of Azusa Table 6 - Electricity Rates Last Ten Fiscal Years Rates are based on residential meter, which is the standard household meter size. There is an additional charge for excess-use rate above normal demand. 147 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t To t a l L i g h t Li g h t C u s t o m e r : Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s AP U F o u n d a t i o n 1, 6 8 6 , 2 7 8 $ 5. 4 8 4 % 1, 9 0 7 , 7 9 2 $ 6. 2 4 3 % 2, 1 0 4 , 0 1 8 $ 6. 3 9 8 % 1, 7 4 1 , 0 2 4 $ 4. 9 1 3 % 1, 7 8 0 , 9 8 9 $ 4. 9 6 5 % 1, 8 0 2 , 2 3 7 $ 4. 9 4 3 % 1, 8 2 5 , 5 5 1 $ 4. 6 9 7 % Ar c h c o m T e c h n o l o g y - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 22 3 , 3 8 3 0. 6 3 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Ar t i s a n S c r e e n P r o c e s s 24 4 , 3 5 3 0. 7 9 5 % 28 9 , 8 0 8 0. 9 4 8 % 31 9 , 4 5 5 0. 9 7 1 % 30 1 , 3 7 8 0. 8 5 1 % - 0. 0 0 0 % 54 6 , 1 2 6 1. 4 9 8 % 47 7 , 2 9 0 1. 2 2 8 % Az u s a M R F T S - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 59 7 , 6 1 5 1. 5 3 7 % Az u s a U S D 85 1 , 0 2 0 2. 7 6 8 % 84 8 , 4 9 4 2. 7 7 7 % 95 4 , 0 4 5 2. 9 0 1 % 89 6 , 3 1 8 2. 5 3 0 % 85 6 , 3 7 3 2. 3 8 7 % 88 3 , 5 6 9 2. 4 2 3 % 90 2 , 9 0 5 2. 3 2 3 % Az u s a W e s t e r n 25 9 , 9 7 9 0. 8 4 6 % 18 7 , 3 1 2 0. 6 1 3 % 24 1 , 5 4 2 0. 7 3 4 % 23 2 , 8 2 3 0. 6 5 7 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Bu e n a V i s t a F o o d P r o d - 0. 0 0 0 % - 0. 0 0 0 % 31 2 , 8 3 6 0. 9 5 1 % 32 9 , 6 8 7 0. 9 3 0 % 33 3 , 5 9 4 0. 9 3 0 % 35 7 , 4 4 5 0. 9 8 0 % 38 2 , 4 8 0 0. 9 8 4 % Ca l i f o r n i a A m f o r g e C o r p 30 0 , 1 8 1 0. 9 7 6 % 24 6 , 8 4 2 0. 8 0 8 % 21 3 , 3 6 7 0. 6 4 9 % 29 5 , 4 4 2 0. 8 3 4 % 65 1 , 2 3 3 1. 8 1 5 % - 0. 0 0 0 % - 0. 0 0 0 % Ci t y o f A z u s a 1, 0 5 0 , 8 5 2 3. 4 1 8 % 1, 0 9 9 , 7 3 6 3. 5 9 9 % 1, 1 1 2 , 0 4 7 3. 3 8 2 % 1, 0 4 5 , 3 2 6 2. 9 5 0 % 1, 2 0 6 , 1 6 5 3. 3 6 2 % 1, 3 4 7 , 5 0 7 3. 6 9 6 % 1, 2 2 8 , 6 4 1 3. 1 6 1 % Ci t y o f G l e n d o r a 51 4 , 9 0 9 1. 6 7 5 % 63 0 , 2 0 2 2. 0 6 2 % 57 5 , 0 8 9 1. 7 4 9 % 72 , 0 9 8 0. 2 0 3 % 67 9 , 7 5 3 1. 8 9 5 % 61 3 , 3 3 6 1. 6 8 2 % 47 9 , 8 8 9 1. 2 3 5 % Co s t c o W h o l e s a l e C o r p . 61 7 , 6 9 8 2. 0 0 9 % 60 5 , 9 1 0 1. 9 8 3 % 61 2 , 6 3 0 1. 8 6 3 % 61 3 , 2 3 0 1. 7 3 1 % 64 2 , 5 6 0 1. 7 9 1 % 64 6 , 8 8 7 1. 7 7 4 % - 0. 0 0 0 % Cr i t e r i o n C a t a l y s t & T e c h L P 82 3 , 6 0 4 2. 6 7 9 % 87 6 , 8 8 1 2. 8 6 9 % 18 1 , 8 3 2 0. 5 5 3 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Ha n s e n ' s J u i c e s (N a k e d J u i c e ) - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Mo r r i s P a r t n e r s h i p 23 4 , 4 1 9 0. 7 6 2 % 24 7 , 1 3 7 0. 8 0 9 % 15 6 , 8 9 8 0. 4 7 7 % 22 6 , 6 8 1 0. 6 4 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % No r t h r o p G r u m m a n S y s . 50 7 , 1 6 8 1. 6 4 9 % 48 5 , 7 6 3 1. 5 9 0 % 50 4 , 4 3 6 1. 5 3 4 % 46 8 , 7 7 4 1. 3 2 3 % 36 6 , 6 2 3 1. 0 2 2 % 48 2 , 7 8 0 1. 3 2 4 % 46 6 , 6 7 3 1. 2 0 1 % Ra i n b i r d C o r p . / C A D i v . 87 6 , 0 3 4 2. 8 4 9 % 91 3 , 2 0 6 2. 9 8 8 % 93 3 , 7 2 2 2. 8 3 9 % 19 3 , 3 4 2 0. 5 4 6 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % S & S F o o d s L L C 1, 3 1 0 , 3 6 3 4. 2 6 2 % 1, 3 7 7 , 3 8 5 4. 5 0 7 % 1, 4 4 4 , 2 8 1 4. 3 9 2 % 1, 3 8 6 , 1 7 0 3. 9 1 2 % 1, 5 8 4 , 0 4 7 4. 4 1 6 % 1, 6 7 9 , 4 2 0 4. 6 0 6 % 1, 6 4 5 , 1 5 9 4. 2 3 3 % St a t e r B r o s M a r k e t - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 14 5 , 4 8 4 0. 4 1 1 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Ta r g e t C o r p o r a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 30 1 , 7 0 7 0. 8 5 1 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % T H M o l d i n g C o r p o r a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 40 1 , 0 7 5 1. 1 3 2 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Th e r m a l R e m e d i a t i o n S o l u t i o n s - 0. 0 0 0 % 18 7 , 8 4 5 0. 6 1 5 % 19 5 , 7 9 8 0. 5 9 5 % 15 4 , 7 9 5 0. 4 3 7 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Ve r i z o n W i r e l e s s I n c 52 8 , 6 3 5 1. 7 1 9 % 54 3 , 6 5 5 1. 7 7 9 % 60 1 , 8 8 2 1. 8 3 0 % 89 4 , 4 9 3 2. 5 2 4 % 1, 0 6 4 , 2 4 1 2. 9 6 7 % 1, 2 0 5 , 3 2 6 3. 3 0 6 % 1, 3 5 7 , 6 4 1 3. 4 9 3 % T o t a l 9, 8 0 5 , 4 9 3 $ 31 . 8 9 1 % 10 , 4 4 7 , 9 6 8 $ 34 . 1 9 0 % 10 , 4 6 3 , 8 7 8 $ 31 . 8 1 8 % 9, 9 2 3 , 2 3 0 $ 28 . 0 0 5 % 9, 1 6 5 , 5 7 8 $ 25 . 5 5 0 % 9, 5 6 4 , 6 3 3 $ 26 . 2 3 2 % 9, 3 6 3 , 8 4 4 $ 24 . 0 9 2 % Ci t y o f A z u s a Ta b l e 7 - 1 0 L a r g e s t E l e c t r i c a l C u s t o m e r s La s t S e v e n F i s c a l Y e a r s 148 Last Ten Fiscal Years Fiscal Year Residential Commercial Industrial Other (2)Total 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 9,640,301 3,461,006 2,532,726 1,018,571 16,652,604 2012 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 2015 9,878,211 3,877,869 2,305,504 1,152,660 17,214,244 Source: City of Azusa Light & Water Department City of Azusa Table 8 - Water Sold by Type of Customer Type of Customer 149 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 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 2015 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. 150 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Pe r c e n t a g e o f Wa t e r To t a l W a t e r W a t e r To t a l W a t e r W a t e r To t a l W a t e r W a t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r C u s t o m e r : Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s Ch a r g e s Re v e n u e s AP U F o u n d a t i o n 10 5 , 5 1 4 $ 0. 6 1 3 % 11 9 , 3 2 2 $ 0. 8 6 4 % 13 1 , 2 9 8 $ 0. 8 4 3 % 21 2 , 8 8 0 $ 1. 2 7 8 % 12 6 , 7 3 7 $ 0. 7 4 2 % 13 0 , 7 6 1 $ 0. 7 2 1 % 13 8 , 6 4 4 $ 0. 7 7 6 % 12 1 , 5 5 2 $ 0. 7 0 6 % Az u s a C a r e f r e e A s s o c i a t i o n 42 , 9 1 5 0. 2 4 9 % 44 , 2 5 9 0. 3 2 1 % 43 , 4 2 9 0. 2 7 9 % 52 , 2 8 5 0. 3 1 4 % 65 , 9 8 4 0. 3 8 6 % - 0. 0 0 0 % - 0. 0 0 0 % 52 , 6 5 6 0. 3 0 6 % Az u s a G r e e n s C o u n t r y C l u b 10 5 , 1 0 3 0. 6 1 1 % 11 5 , 0 8 1 0. 8 3 3 % 11 9 , 7 7 1 0. 7 6 9 % 11 4 , 5 9 6 0. 6 8 8 % 13 1 , 8 0 9 0. 7 7 2 % 16 3 , 4 5 5 0. 9 0 1 % 15 7 , 9 0 9 0. 8 8 4 % 16 3 , 7 3 4 0. 9 5 1 % Az u s a U n i f i e d S c h o o l D i s t r i c t 25 2 , 8 3 6 1. 4 6 9 % 29 3 , 4 9 6 2. 1 2 5 % 26 3 , 8 5 2 1. 6 9 5 % 30 4 , 2 6 5 1. 8 2 7 % 28 5 , 8 8 3 1. 6 7 4 % 39 0 , 3 7 2 2. 1 5 2 % 38 0 , 3 0 3 2. 1 3 0 % 30 9 , 0 4 1 1. 7 9 5 % Az u s a W e s t e r n 22 6 , 8 9 6 1. 3 1 8 % 41 9 , 7 1 4 3. 0 4 0 % 32 8 , 9 8 9 2. 1 1 3 % 24 4 , 5 2 8 1. 4 6 8 % 25 9 , 5 5 5 1. 5 2 0 % 26 2 , 6 5 6 1. 4 4 8 % 25 1 , 6 5 6 1. 4 0 9 % 27 7 , 7 7 9 1. 6 1 4 % Ca l m a t S i t e # 1 0 5 5 - A 27 , 1 4 1 0. 1 5 8 % - 0. 0 0 0 % - 0. 0 0 0 % 54 , 4 3 9 0. 3 2 7 % 36 , 3 6 8 0. 2 1 3 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Ci t r u s C o l l e g e 47 , 8 7 7 0. 2 7 8 % 44 , 0 8 8 0. 3 1 9 % 43 , 1 2 3 0. 2 7 7 % 45 , 5 0 7 0. 2 7 3 % 47 , 3 4 7 0. 2 7 7 % 49 , 1 3 3 0. 2 7 1 % - 0. 0 0 0 % - 0. 0 0 0 % Ci t y o f A z u s a 78 , 2 6 3 0. 4 5 5 % 86 , 3 9 3 0. 6 2 6 % 94 , 9 5 5 0. 6 1 0 % 14 1 , 4 5 9 0. 8 4 9 % 13 7 , 7 3 0 0. 8 0 7 % 15 0 , 9 5 4 0. 8 3 2 % 15 7 , 0 5 2 0. 8 7 9 % 11 6 , 0 6 1 0. 6 7 4 % Co v i n a V a l l e y U S D 78 , 1 6 2 0. 4 5 4 % 84 , 4 8 7 0. 6 1 2 % 74 , 2 3 7 0. 4 7 7 % 42 , 6 4 4 0. 2 5 6 % 11 0 , 5 8 7 0. 6 4 8 % 16 7 , 6 8 4 0. 9 2 4 % 14 2 , 3 5 6 0. 7 9 7 % 14 5 , 3 2 9 0. 8 4 4 % He c t o r P e r a l e s - 0. 0 0 0 % - 0. 0 0 0 % 28 0 , 7 8 5 1. 8 0 4 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Lo v i n O v e n - 0. 0 0 0 % 43 , 5 3 7 0. 3 1 5 % - 0. 0 0 0 % 47 , 0 9 9 0. 2 8 3 % 52 , 2 5 0 0. 3 0 6 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Mi k e N i j j a r - 0 6 0 - 0. 0 0 0 % - 0. 0 0 0 % 71 , 2 1 7 0. 4 5 7 % - 0. 0 0 0 % 79 , 6 7 6 0. 4 6 7 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Mi l l e r B r e w e r y 97 4 , 4 2 1 5. 6 6 1 % 1, 3 7 1 , 2 7 8 9. 9 3 1 % 1, 2 8 0 , 9 7 8 8. 2 2 9 % 1, 1 4 9 , 3 3 1 6. 9 0 2 % 1, 1 2 6 , 3 8 7 6. 5 9 7 % 1, 1 5 5 , 2 2 7 6. 3 6 9 % 1, 0 6 8 , 8 1 9 5. 9 8 5 % 95 7 , 6 7 7 5. 5 6 3 % Mo u n t a i n C o v e - 0. 0 0 0 % - 0. 0 0 0 % 72 , 7 0 7 0. 4 6 7 % - 0. 0 0 0 % 68 , 1 3 8 0. 3 9 9 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % NC I - 0. 0 0 0 % 48 , 4 3 2 0. 3 5 1 % 56 , 3 8 9 0. 3 6 2 % 64 , 3 6 8 0. 3 8 7 % 68 , 2 5 3 0. 4 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Re a d y P a c 45 0 , 5 4 7 2. 6 1 7 % 37 1 , 8 2 7 2. 6 9 3 % 43 1 , 6 4 9 2. 7 7 3 % 49 9 , 3 5 8 2. 9 9 9 % 53 3 , 1 0 5 3. 1 2 2 % 55 6 , 4 9 3 3. 0 6 8 % 54 6 , 8 1 0 3. 0 6 2 % 43 8 , 8 4 7 2. 5 4 9 % S& S F o o d s L L C 76 , 1 6 0 0. 4 4 2 % 69 , 2 0 7 0. 5 0 1 % 83 , 8 9 6 0. 5 3 9 % 11 3 , 3 4 3 0. 6 8 1 % 12 2 , 6 6 6 0. 7 1 8 % 13 2 , 6 5 8 0. 7 3 1 % 12 9 , 0 9 3 0. 7 2 3 % 17 3 , 3 3 8 1. 0 0 7 % So u t h e r n C a l i f o r n i a E d i s o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 34 , 9 8 3 0. 2 0 5 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Vi l l a A z u s a A s s o c i a t i o n - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 59 , 8 9 8 0. 3 5 1 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % Vu l c a n M a t e r i a l s - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % - 0. 0 0 0 % 51 , 7 6 0 0. 2 9 0 % - 0. 0 0 0 % T o t a l 2, 4 6 5 , 8 3 5 $ 14 . 3 2 5 % 3, 1 1 1 , 1 2 1 $ 22 . 5 3 1 % 3, 3 7 7 , 2 7 5 $ 21 . 6 9 4 % 3, 0 8 6 , 1 0 2 $ 18 . 5 3 2 % 3, 3 4 7 , 3 5 6 $ 19 . 6 0 4 % 3, 1 5 9 , 3 9 3 $ 17 . 4 1 7 % 3, 0 2 4 , 4 0 2 $ 16 . 9 3 6 % 2, 7 5 6 , 0 1 4 $ 16 . 0 1 0 % Hi s t o r i c a l i n f o r m a t i o n n o t a v a i l a b l e f o r 1 0 y e a r c o m p a r i s o n . So u r c e : C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t Ci t y o f A z u s a Ta b l e 1 0 - L a r g e s t W a t e r C u s t o m e r s La s t E i g h t F i s c a l Y e a r s 151 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 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% 2015 2,486,788,064 285,681,045 907,790,565 3,680,259,674 0.13976 3,680,259,674 100.0% 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) 152 20 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 20 1 5 Ci t y D i r e c t R a t e s : Ge n e r a l C i t y # 0 . 1 4 9 2 1 $ 0 . 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ 0. 1 4 9 2 1 $ Re d e v e l o p m e n t A g e n c y 1. 0 4 9 5 3 0 . 1 0 4 2 1 1. 0 2 9 7 6 1. 0 1 8 0 0 1. 0 1 8 0 0 1. 0 1 8 0 0 1. 0 1 8 0 0 (1 ) (1 ) (1 ) To t a l D i r e c t R a t e 0. 3 4 4 6 1 0 . 3 3 8 4 3 0. 3 1 8 9 0 0. 3 2 6 9 8 0. 3 3 6 3 8 0. 3 4 2 2 8 0. 3 4 3 1 1 0. 3 3 6 7 8 0. 1 3 9 7 6 0. 1 3 9 7 6 Ov e r l a p p i n g R a t e s : Az u s a U n i f i e d S c h o o l D i s t r i c t 0. 0 7 2 5 6 0 . 0 7 8 9 6 0. 0 6 0 4 2 0. 0 3 6 0 3 0. 0 3 9 0 9 0. 0 5 6 9 5 0. 0 5 6 2 8 0. 0 4 6 4 1 0. 0 3 7 6 5 0. 0 4 4 6 8 Ci t r u s C o m m u n i t y C o l l e g e D i s t r i c t 0. 0 1 7 6 3 0 . 0 0 3 5 6 0. 0 1 6 1 1 0. 0 2 4 4 1 0. 0 2 3 9 7 0. 0 2 5 1 6 0. 0 2 4 4 7 0. 0 2 5 9 0 0. 0 2 2 2 6 0. 0 2 3 2 7 Co u n t y D e t e n t i o n F a c 1 9 8 7 D e b t 0. 0 0 0 8 0 0 . 0 0 0 6 6 - - - - - - - - Co v i n a V a l l e y U n i f i e d S c h o o l D i s t r i c t 0. 0 3 7 9 3 0 . 0 8 4 1 9 0. 0 7 8 7 0 0. 0 7 8 6 3 0. 0 8 5 9 2 0. 0 9 0 0 3 0. 0 8 9 9 9 0. 0 9 5 0 0 0. 1 1 4 7 2 0. 1 1 4 2 6 Du a r t e U n i f i e d S c h o o l D i s t r i c t 0. 0 6 2 1 8 0 . 0 6 6 3 3 0. 0 6 0 6 3 0. 0 6 7 3 9 0. 0 7 2 5 6 0. 0 7 5 4 2 0. 1 1 2 3 7 0. 1 2 6 5 7 0. 1 2 2 8 3 0. 1 4 2 6 3 Lo s A n g e l e s C o u n t y F l o o d C o n t r o l 0. 0 0 0 0 5 0 . 0 0 0 0 5 - - - - - - - - Me t r o p o l i t a n W a t e r D i s t r i c t 0. 0 0 5 2 0 0 . 0 0 4 7 0 0. 0 0 4 5 0 0. 0 0 4 3 0 0. 0 0 4 3 0 0. 0 0 3 7 0 0. 0 0 3 7 0 0. 0 0 3 5 0 0. 0 0 3 5 0 0. 0 0 3 5 0 Mt . S a n A n t o n i o C o l l e g e 0. 0 2 1 2 2 0 . 0 2 5 3 0 0. 0 1 7 5 0 0. 0 2 3 3 3 0. 0 2 5 7 1 0. 0 2 6 3 6 0. 0 2 6 4 2 0. 0 2 8 9 6 0. 0 2 0 2 3 0. 0 2 1 2 9 SG V M W D S t a t e W a t e r B o n d 0. 0 3 3 1 0 0 . 0 3 3 1 0 0. 0 3 3 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 0. 0 2 9 1 0 To t a l T a x R a t e 0. 3 9 9 8 8 0 . 4 4 6 0 6 0. 4 2 0 1 7 0. 4 1 2 4 0 0. 4 2 9 8 6 0. 4 5 5 9 3 0. 4 9 1 5 4 0. 5 0 4 6 5 0. 4 9 9 5 0 0. 5 2 7 9 4 (1 ) Th e R e d e v e l o p m e n t A g e n c y d i s s o l u t i o n b y th e S t a t e o f C a l i f o r n i a c a u s e d t h e t a x al l o c a t i o n b o n d s t o b e t r a n s f e r r e d t o t h e Su c c e s s o r A g e n c y a n d i s a f i d u c i a r y f u n d . In 1 9 7 8 , C a l i f o r n i a v o t e r s p a s s e d P r o p os i t i o n 1 3 w h i c h s e t t h e p r o p e r t y ta x r a t e a t a 1 . 0 0 % f i x e d a m o u n t . So u r c e : L . A . C o u n t y A s s e s s o r 2 0 05 / 0 6 - 2 0 1 4 / 1 5 T a x R a t e T a b l e Th i s 1 . 0 0 % i s s h a r e d b y a l l t a xi n g a g e n c i e s f o r w h i c h t h e su b j e c t p r o p e r t y r e s i d e s w i t h i n . I n a d d i t i o n t o t h e 1 . 0 0 % f i x e d am o u n t , p r o p e r t y o w n e r s a r e c h ar g e d t a x e s a s a p e r c e n t a g e Ge n e r a l f u n d t a x r a t e s a r e r e p r es e n t a t i v e a n d b a s e d u p o n t h e di r e c t a n d o v e r l a p p i n g r a t e s f o r t h e l a r g e s t G e n e r a l F u n d t a x To t a l D i r e c t R a t e i s t h e w e i g h t e d a v e r a g e o f a l l i n d i v i d u a l d i r e c t ra t e s a p p l i e d b y t h e C i t y . T h e D i r e c t R a t e p e r c e n t a g e s pr e s e n t e d i n t h e c o l u m n s a b o v e i s n o t t h e s u m o f t h e G e n e r a l RD A r a t e i s b a s e d o n t h e l a r g e s t R D A t a x r a t e a r e a a n d i n c l u d e s on l y r a t e s f r o m i n d e b t e d n e s s a d o p t e d p r i o r t o 1 9 8 9 p e r Ca l i f o r n i a S t a t e s t a t u t e . R D A d i r e c t a n d o v e r l a p p i n g r a t e s a r e CI T Y O F A Z U S A Ta b l e 1 2 - D i r e c t a n d O v e r l a p p i n g P r o p e r t y T a x R a t e s (r a t e p e r $ 1 0 0 o f a s s e s s e d v a l u e ) La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 153 Table 13 - Principal Property Tax Payers (Top Ten) Current Year and Nine Years Ago 2015 2006 Percentage of Percentage of City City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Northrop Grumman Systems Corporation 106,862,867$ 2.90% 1 128,498,609$ 4.98% Rainbird Corp/CA Div.42,014,013 1.14% 2 35,007,317 1.36% PPF Industrial 823 8th Street 32,361,715 0.88% 4 28,126,500 1.09% Azusa Pacific University 31,153,343 0.85% - 0.00% Citrus Crossing Properties Fee 24,057,536 0.65% - 0.00% S & S Foods LLC 22,312,364 0.61% - 0.00% VPM Soldano Senior Village LP 20,084,070 0.55% - 0.00% Costco Wholesale Corporation 19,376,965 0.53% 5 17,245,739 0.67% Public Storage Properties IV LTD 14,881,252 0.40% - 0.00% MCS Edgewood Center LLC 14,420,518 0.39% - 0.00% Sam Menlo Trust - 0.00% 7 16,618,743 0.64% Coastal Pacific Glen LLC - 0.00% 3 31,770,701 1.23% Criterion Catalyst Company LP - 0.00% 6 17,164,259 0.66% Reichhold Inc - 0.00% 9 14,660,224 0.57% JAR Azusa Association LTD - 0.00% 8 16,474,962 0.64% Azusa Land Partners LLC - 0.00% 10 14,502,069 0.56% 327,524,643$ 8.90% 320,069,123$ 12.40% 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 154 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 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% 2015 4,006,854 3,891,541 97.1% 47,305 3,938,847 98.3% 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 155 Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - t y p e A c t i v i t i e s Fi s c a l Y e a r Ce r t i f i c a t e Ta x Ta x a b l e To t a l Ce r t i f ic a t e To t a l To t a l P e r c e n t a g e o f P e r c e n t a g e o f En d e d of Al l o c a t i o n P e n s i o n G o v e r n m e n t a l of Rev e n u e B u s i n e s s - t y p e P r i m a r y A s s e s s e d P e r s o n a l Ju n e 3 0 L o a n s P a r t i c i p a t i o n Bo n d s ( 1 ) Fu n d i n g B o n d s ( 2 ) Ac t i v i t i e s Lo a n s (7 ) Pa r t i c i p a t i o n ( 3 ) Bo n d s (4 ) Ac t i v i t i e s G o v e r n m e n t a l V a l u e s I n c o m e 20 0 6 9 , 0 0 2 , 3 5 5 $ 4 , 3 2 5 , 0 0 0 $ 2 4 , 8 2 4 , 5 0 6 $ - $ 3 8 , 1 5 1 , 8 6 1 $ - $ 3 2 , 3 5 5 , 0 0 0 $ - $ 3 2 , 3 5 5 , 0 0 0 $ 7 0 , 5 0 6 , 8 6 1 $ 2 . 7 3 % 8 . 6 4 % 20 0 7 8 , 8 9 9 , 0 6 6 4 , 1 2 0 , 0 0 0 2 4 , 2 7 1 , 2 0 6 - 3 7 , 2 9 0 , 2 7 2 - 3 1 , 1 1 0 , 0 0 0 5 4 , 8 5 0 , 0 0 0 8 5 , 9 6 0 , 0 0 0 1 2 3 , 2 5 0 , 2 7 2 4 . 0 6 % 1 4 . 4 9 % 20 0 8 8 , 8 7 9 , 2 4 7 3 , 9 1 0 , 0 0 0 3 9 , 5 4 6 , 6 9 8 - 5 2 , 3 3 5 , 9 4 5 - 2 9 , 8 2 5 , 0 0 0 5 4 , 8 5 0 , 0 0 0 8 4 , 6 7 5 , 0 0 0 1 3 7 , 0 1 0 , 9 4 5 4 . 2 5 % 1 5 . 8 9 % 20 0 9 8 , 9 7 4 , 1 7 2 3 , 6 9 5 , 0 0 0 5 7 , 0 5 6 , 2 0 1 7 , 2 1 5 , 0 0 0 7 6 , 9 4 0 , 3 7 3 - 2 8 , 5 0 0 , 0 0 0 5 4 , 8 5 0 , 0 0 0 8 3 , 3 5 0 , 0 0 0 1 6 0 , 2 9 0 , 3 7 3 4 . 5 2 % 1 9 . 0 0 % 20 1 0 9 , 3 6 6 , 0 3 8 3 , 4 8 0 , 0 0 0 5 5 , 8 1 4 , 8 8 9 6 , 7 3 5 , 0 0 0 7 5 , 3 9 5 , 9 2 7 - 2 7 , 1 2 5 , 0 0 0 5 4 , 5 7 0 , 0 0 0 8 1 , 6 9 5 , 0 0 0 1 5 7 , 0 9 0 , 9 2 7 4 . 5 7 % 1 8 . 0 2 % 20 1 1 9 , 6 8 5 , 0 1 5 3 , 2 5 5 , 0 0 0 5 4 , 7 6 8 , 0 1 4 6 , 1 8 0 , 0 0 0 7 3 , 8 8 8 , 0 2 9 - 2 5 , 6 9 0 , 0 0 0 5 4 , 2 7 5 , 0 0 0 7 9 , 9 6 5 , 0 0 0 1 5 3 , 8 5 3 , 0 2 9 4 . 7 5 % 1 8 . 0 0 % 20 1 2 1 0 , 0 0 5 , 4 6 1 3 , 0 2 5 , 0 0 0 - (6 ) 5, 5 5 5 , 0 0 0 1 8 , 5 8 5 , 4 6 1 5 , 6 3 0 , 0 0 0 3 , 0 7 0 , 0 0 0 6 8 , 5 0 0 , 0 0 0 7 7 , 2 0 0 , 0 0 0 9 5 , 7 8 5 , 4 6 1 2 . 9 9 % 1 0 . 8 5 % 20 1 3 1 0 , 4 0 3 , 6 4 4 2 , 7 8 5 , 0 0 0 - (6 ) 4, 8 5 5 , 0 0 0 1 8 , 0 4 3 , 6 4 4 5 , 4 0 5 , 0 0 0 2 , 5 4 0 , 0 0 0 6 8 , 1 8 0 , 0 0 0 7 6 , 1 2 5 , 0 0 0 9 4 , 1 6 8 , 6 4 4 2 . 9 0 % 1 1 . 1 2 % 20 1 4 1 0 , 7 0 0 , 6 5 6 2 , 5 4 0 , 0 0 0 - 4 , 0 7 5 , 0 0 0 1 7 , 3 1 5 , 6 5 6 5 , 0 8 0 , 0 0 0 1 , 9 8 5 , 0 0 0 6 7 , 3 8 0 , 0 0 0 7 4 , 4 4 5 , 0 0 0 9 1 , 7 6 0 , 6 5 6 2 . 6 8 % 1 0 . 8 5 % 20 1 5 - (8 ) 2, 2 8 5 , 0 0 0 - 3 , 2 0 5 , 0 0 0 5, 4 9 0 , 0 0 0 4, 7 3 0 , 0 0 0 1, 4 0 0 , 0 0 0 65 , 4 4 5 , 0 0 0 7 1 , 5 7 5 , 0 0 0 77 , 0 6 5 , 0 0 0 2. 0 9 % (5 ) (1 ) Th e R e d e v e l o p m e n t A g e n c y i s s u e d $ 9 , 0 5 1 , 4 1 6 o f n e w T A B S i n 2 0 0 5 , $ 1 5 , 7 8 0 , 0 0 0 2 0 0 7 S e r i e s A M e r g e d P r o j e c t A r e a T A B S a n d $ 4 , 7 9 0 , 0 00 S e r i e s B M e r g e d P r o j e c t a r e a T A B S , $ 6 , 7 1 5 , 0 0 0 2 0 0 8 Se r i e s A M e r g e s P r o j e c t A r e a T A B S , a n d $ 1 1 , 5 8 0 , 0 0 0 2 0 0 8 H o u s i n g T a x A l l o c a t i o n B o n d s S e r i e s B . (2 ) Th e C i t y i s s u e d $ 7 , 2 1 5 , 0 0 0 o f t a xa b l e p e n s i o n f u n d i n g b o n d s i n 2 0 0 8 (3 ) Th e L i g h t F u n d i s s u e d $ 1 1 , 9 9 5 , 0 0 0 o f n e w C e r t i f i c a t e s o f P a r t i c i p a t i o n i n 2 0 0 3 ; is s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 5 , 8 2 0 , 0 0 0 i n 2 0 1 2 . (4 ) Th e W a t e r F u n d r e p l a c e d i t s R e v e nu e B o n d w i t h C e r t i f i c a t e s o f P a r t i c i p a t i o n i n De c e m b e r 2 0 0 3 ; i s s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 8 , 7 1 5 , 0 0 0 i n 2 0 1 2 ; (5 ) In f o r m a t i o n n o t a v a i l a b l e (6 ) Th e R e d e v e l o p m e n t A g e n c y d i s s o l u t i o n b y t h e S t a t e o f C a l i f o r n i a ca u s e d t h e t a x a l l o c a t i o n b o n d s t o b e t r a n s f e r r e d t o t h e S u c c e s so r A g e n c y a n d i s a f i d u c i a r y f u n d . (7 ) Th e S e w e r F u n d a c q u i r e d a n i n s t a l l m e n t s a l e a g r e e m e n t l o a n o f $ 5 , 6 3 0 , 0 00 i n 2 0 1 1 t h a t i n c l u d e s th e r e f u n d i n g o f 1 9 9 4 C O P s . (8 ) Th e t e r m o f t h e l o a n e x p i r e d a n d th e r e m a i n i n g b a l a n c e w a s f o r g i v e n . So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 1 5 - R a t i o s o f O u t s t a n d i n g D e b t b y T y p e La s t T e n F i s c a l Y e a r s 156 Fiscal Year Certificates Tax Percentage Debt per Ended of Allocation of Assessed City June 30 Participation Bonds Total Values Capita 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% 53 2015 2,285,000 (1)2,285,000 0.06% 47 (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. Source: City of Azusa Finance Department CITY OF AZUSA Table 16 - Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years 157 Percentage Net Gross Bonded Applicable Bonded Debt Balance To City Debt APFA 2003 Lease Revenue COP 2,285,000$ 100 2,285,000$ Pension Bonds 3,205,000 100 3,205,000 Total Direct Debt 5,490,000 Metropolitan Water District 53,296,395$ 0.110 58,450$ Citrus CCD DS 2004 Series 2014D 77,687,251 15.567 12,093,541 Citrus CCD DS 2013 Refunding 12,320,000 15.567 1,917,849 Citrus CCD DS 2004 Series 2007B 2,750,000 15.567 428,091 Citrus CCD DS 2004 2009 Series C 7,105,302 15.567 1,106,079 Mount San Antonio Comm. College District 2001, 2006 Ser C 1,975,000 0.024 467 Mount San Antonio Comm. College District 2001, 2008 Ser D 21,706,654 0.024 5,133 Mount San Antonio Comm. College District 2008 Series 13A 203,861,691 0.024 48,204 Mount San Antonio Comm. College District 2008 Series 2013B 10,640,000 0.024 2,516 Mount San Antonio Comm. College District 2013 Ref Series A 73,910,000 0.024 17,476 Mount San Antonio Comm. College District 2013 Ref Series B 47,085,000 0.024 11,133 Azusa Unified School District 2002 Series 2007 2,078,763 64.406 1,338,848 Azusa Unified School District 2002 Series 2011 58,548,585 64.406 37,708,811 Covina Valley Unified School District 2001 Series B 15,402,411 0.226 34,863 Covina Valley Unified School District 2006, 07 Series B 14,673,731 0.226 33,214 Covina Valley Unified School District 2001 Ref 2010 Series A 12,215,000 0.226 27,649 Covina Valley Unified School District 2012 Series A 28,750,000 0.226 65,076 Covina Valley Unified School District 2013 Ref Bonds 39,805,000 0.226 90,099 Duarte Unified School District 1998 Series B 3,694,374 0.383 14,148 Duarte Unified School District 1998 Series C 4,794,734 0.383 18,361 Duarte Unified School District 1998 Series D 3,614,534 0.355 13,842 Duarte Unified School District Refunding 1998, 2010 Series A 12,527,314 0.383 47,973 Duarte Unified School District 2010 Series A 2,110,000 0.383 8,080 Duarte Unified School District 2010 Series B 19,512,780 0.383 74,724 Duarte Unified School District 2010 Series C 8,000,000 0.383 30,636 Duarte Unified School District 2013 Ref Bonds 2,030,000 0.383 7,774 Total Overlapping Debt 55,203,037 Total Direct and Overlapping Debt 60,693,037$ 2014/15 Assessed Valuation: $2,865,858,608 after deducting $814,401,066 Incremental Value. Debt to Assess Valuation Ratios:Direct Debt 0.19% Overlapping Debt 1.93% Total Debt 2.12% Source: HdL Coren & Cone City of Azusa Table 17 - Direct and Overlapping Debt June 30, 2015 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. 158 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 As s e s s e d v a l u a t i o n 1, 7 8 2 , 3 7 8 , 1 8 4 $ 2 , 3 7 5 , 5 5 4 , 7 7 8 $ 2 , 5 8 8 , 9 5 9 , 0 2 5 $ 2 , 5 4 8 , 4 8 2 , 0 7 7 $ 2 , 2 9 2 , 8 7 0 , 4 4 0 $ 2 , 2 5 2 , 6 8 7 , 4 5 1 $ 2 , 2 9 7 , 9 2 2 , 4 4 8 $ 2 , 4 5 9 , 2 6 1 , 9 6 2 $ 2 , 6 6 1 , 7 6 8 , 9 0 3 $ 2 , 8 5 4 , 2 9 5 , 9 2 7 $ Co n v e r s i o n p e r c e n t a g e 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % 25 % Ad j u s t e d a s s e s s e d v a l u a t i o n 44 5 , 5 9 4 , 5 4 6 59 3 , 8 8 8 , 6 9 5 64 7 , 2 3 9 , 7 5 6 63 7 , 1 2 0 , 5 1 9 57 3 , 2 1 7 , 6 1 0 56 3 , 1 7 1 , 8 6 3 57 4 , 4 8 0 , 6 1 2 61 4 , 8 1 5 , 4 9 1 66 5 , 4 4 2 , 2 2 6 71 3 , 5 7 3 , 9 8 2 De b t l i m i t p e r c e n t a g e 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % Le g a l d e b t l i m i t 66 , 8 3 9 , 1 8 2 89 , 0 8 3 , 3 0 4 97 , 0 8 5 , 9 6 3 95 , 5 6 8 , 0 7 8 85 , 9 8 2 , 6 4 2 84 , 4 7 5 , 7 7 9 86 , 1 7 2 , 0 9 2 92 , 2 2 2 , 3 2 4 99 , 8 1 6 , 3 3 4 10 7 , 0 3 6 , 0 9 7 Am o u n t o f d e b t a p p l i c ab l e t o d e b t l i m i t (1 ) - - - - - - - - - - Le g a l d e b t m a r g i n 66 , 8 3 9 , 1 8 2 $ 89 , 0 8 3 , 3 0 4 $ 97 , 0 8 5 , 9 6 3 $ 95 , 5 6 8 , 0 7 8 $ 85 , 9 8 2 , 6 4 2 $ 84 , 4 7 5 , 7 7 9 $ 86 , 1 7 2 , 0 9 2 $ 92 , 2 2 2 , 3 2 4 $ 99 , 8 1 6 , 3 3 4 $ 10 7 , 0 3 6 , 0 9 7 $ So u r c e : C i t y o f A z u s a - F i n a n c e D e p a r t m e n t Ci t y o f A z u s a Ta b l e 1 8 - L e g a l D e b t M a r g i n I n f o r m a t i o n La s t T e n F i s c a l Y e a r s (1 ) To t a l B o n d e d d e b t i s s u e d b y t h e C i t y , e x c l u d i n g c e r t i f i c a t e s of p a r t i c i p a t i o n , t a x a l l o c a t i on b o n d s , s p e c i a l a s s i g n m e n t bo n d s , r e v e n u e b o n d s p a y a b l e fr o m e n t e r p r i s e f u n d s , a n d pl e d g e m o r t g a g e r e v e n u e s a n d r e v e n u e b o n d s i s s u e d b y Fi s c a l Y e a r 159 Debt Service Requirements Fiscal Year Net Revenue Ended Operating Operating Available for June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage 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 2015 21,745,232 14,821,837 6,923,395 1,735,000 2,871,805 4,606,805 1.50 (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 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 2015 46,566,798 39,116,215 7,450,583 585,000 254,443 839,443 8.88 (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) 160 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 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 - 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 2015 2,659,370 1,713,886 945,484 350,000 168,565 518,565 1.82 (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) (Continued) 161 Debt Service Requirements Fiscal Year Ended Tax June 30 Increment Principal Interest Total Coverage 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 (1)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 2015 4,817,379 1,355,000 2,994,924 4,349,924 1.11 Source: City of Azusa Finance Department CITY OF AZUSA Table 20 - Pledged Revenue Coverage Tax Allocation Bonds - Redevelopment Agency (Successor Agency) Last Ten Fiscal Years 162 Per Capita Calendar City County Personal Personal Unemployment Year Population Population (1)Income Income Rate(1) 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% 2014 48,015 10,053,995 845,345,000 17,464 6.2% 2015 48,799 10,116,705 (2)(2)5.5% Sources: HdL Coren & Cone, Los Angeles County Assessor (1) U.S. Department of Census and State Department of Finance (2) Data unavailable. CITY OF AZUSA Table 21 - Demographic and Economic Statistics Last Ten Calendar Years 163 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 Pacific University 1433 1 6.60%900 3 4.37% Azusa Unified School District 1250 2 5.76%1600 1 7.77% Northrop Grumman 859 3 3.96%1400 2 6.80% City of Azusa 383 4 1.76%530 4 2.57% Costco Wholesale Corporation 295 5 1.36%290 7 1.41% S & S Foods LLC 285 6 1.31%200 9 0.97% Hanson Distributing Company 195 7 0.90%(2) Buena Vista Food Products 186 8 0.86%(2) Target Store 142 9 0.65%(2) Artisan Screen 140 10 0.65%80 10 0.39% Morris National Candy 240 6 1.17% Pacific Precision Metals 250 8 1.21% Perkin Elmer Optoelectronics 300 5 1.46% Total of Top Employers 3,735 4,890 Total Employees in City 22,300 (1)20,600 (1) Sources: Data from City of Azusa Business License Division unless noted. (1)California Employment Development Department (2)Data not available 2014-15 2005-06 164 by F u n c t i o n Fu n c t i o n 20 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Ge n e r a l g o v e r n m e n t 43 . 7 4 5 42 . 2 3 6 44 . 6 9 8 50 . 3 4 8 49 . 2 6 1 48 . 4 1 1 30 . 9 3 4 33 . 5 9 3 31 . 1 4 6 31 . 9 4 6 Pu b l i c s a f e t y 91 . 9 7 8 93 . 8 0 0 96 . 5 3 0 99 . 0 3 5 98 . 9 4 5 97 . 3 9 5 88 . 7 5 0 97 . 5 7 0 91 . 7 5 0 91 . 7 5 0 Co m m u n i t y d e v e l o p m e n t 1 3 . 5 0 2 14 . 9 2 7 15 . 4 4 1 15 . 9 8 5 16 . 3 7 6 16 . 1 9 6 14 . 1 9 7 14 . 6 5 1 15 . 5 3 3 14 . 3 0 0 Pa r k s a n d r e c r e a t i o n 55 . 3 5 4 56 . 1 6 9 48 . 2 1 1 51 . 6 5 0 55 . 3 0 6 56 . 5 5 7 48 . 0 2 3 45 . 4 0 7 49 . 3 1 7 48 . 6 3 5 Pu b l i c w o r k s 20 . 8 0 0 21 . 8 8 4 23 . 1 3 2 31 . 1 1 5 31 . 1 1 5 31 . 1 1 5 30 . 0 5 8 30 . 2 6 5 27 . 1 8 1 27 . 2 7 1 W a t e r 39 . 2 2 0 36 . 4 2 5 36 . 3 5 0 44 . 4 2 5 44 . 0 2 5 43 . 7 7 5 42 . 6 2 5 43 . 2 7 5 46 . 6 1 7 47 . 2 9 7 El e c t r i c 30 . 2 8 0 31 . 4 2 5 32 . 3 5 0 36 . 1 2 5 37 . 7 2 5 36 . 4 7 5 37 . 6 2 5 37 . 9 7 5 32 . 4 9 2 31 . 8 8 8 Se w e r / W a s t e w a t e r 6. 2 5 0 6. 0 0 0 6. 0 0 0 10 . 0 0 0 10 . 2 5 0 10 . 2 5 0 10 . 2 3 0 9. 5 7 0 7. 5 4 0 6. 7 4 0 T o t a l 30 1 . 1 2 9 30 2 . 8 6 6 30 2 . 7 1 2 33 8 . 6 8 3 34 3 . 0 0 3 34 0 . 1 7 4 30 2 . 4 4 2 31 2 . 3 0 6 30 1 . 5 7 6 29 9 . 8 2 7 So u r c e : C i t y o f A z u s a F i n a n c e D e p a r t m e n t As s i g n e d F u l l - T i m e E q u i v a l e n t ( F T E ) T o t a l s Ci t y o f A z u s a Ta b l e 2 3 - F u l l - t i m e a n d P a r t - t i m e E m p l o y e e s La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 165 20 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Po l i c e : Ca l l s f o r s e r v i c e 51 , 3 5 3 5 2 , 0 0 0 5 6 , 1 6 6 5 6 , 6 1 0 5 4 , 8 9 6 5 4 , 7 3 4 5 7 , 2 1 0 5 7 , 6 3 7 54 , 3 6 3 4 4 , 8 4 2 Pa r k i n g c i t a t i o n s i s s u e d 4, 1 3 6 4 , 6 9 1 4 , 8 3 3 9 , 8 8 1 9 , 8 0 1 8 , 1 8 8 6 , 5 1 5 7 , 6 8 0 6 , 8 4 6 5, 0 5 7 Pu b l i c W o r k s : St r e e t r e s u r f a c i n g ( l i n e a l m i l e s ) 12 . 8 1 5 . 0 1 3 . 3 1 4 . 3 2. 5 6 . 0 4 . 2 4 . 3 5 . 3 3. 0 Pa r k s a n d r e c r e a t i o n : Nu m b e r o f r e c r e a t i o n c l a s s e s 84 84 84 1 9 6 3 1 0 56 73 1 0 1 2 1 1 17 7 Nu m b e r o f f a c i l i t y r e n t a l s 1, 5 1 0 1 , 4 9 7 1 , 4 9 2 7 0 6 8 2 7 8 2 9 8 6 8 8 7 4 8 0 9 86 6 Wa t e r : Nu m b e r o f s e r v i c e c o n n e c t i o n s 23 , 1 2 6 (2 ) 22 , 8 9 5 (2 ) 22 , 8 6 8 (2 ) 23 , 0 1 4 (2 ) 23 , 0 3 6 (2 ) 23 , 1 0 0 (2 ) 23 , 1 0 4 (2 ) 23 , 3 0 2 (2 ) 23 , 5 9 7 (2 ) 23 , 8 7 1 (2 ) Av e r a g e d a i l y c o n s u m p t i o n 25 , 0 6 7 2 7 , 3 1 9 2 3 , 2 9 6 2 2 , 8 3 2 2 1 , 5 1 7 2 0 , 2 3 0 2 0 , 8 1 9 2 2 , 1 7 9 2 1 , 9 7 4 19 , 4 3 8 (h u n d r e d c u b i c f e e t ) Li g h t : Nu m b e r o f s e r v i c e c o n n e c t i o n s 15 , 3 5 8 1 5 , 5 3 1 1 5 , 6 5 0 1 5 , 4 0 3 1 5 , 2 7 6 (2 ) 15 , 3 6 2 (2 ) 15 , 5 6 7 (2 ) 15 , 7 4 9 (2 ) 15 , 9 5 5 (2 ) 16 , 4 6 6 (2 ) Av e r a g e d a i l y c o n s u m p t i o n 70 7 , 9 6 5 7 0 0 , 1 6 7 6 9 1 , 0 7 0 6 9 3 , 4 6 9 6 7 2 , 9 2 0 6 5 4 , 0 5 0 6 4 8 , 0 2 0 6 7 7 , 8 7 1 6 8 5 , 6 9 9 70 5 , 1 0 0 (k W h ) Se w e r : Nu m b e r o f s e r v i c e c o n n e c t i o n s 14 , 1 8 3 (2 ) 14 , 3 4 4 (2 ) 14 , 4 0 2 (2 ) 14 , 0 7 3 (2 ) 14 , 3 3 5 (2 ) 14 , 0 7 1 (2 ) 15 , 2 3 5 (2 ) 15 , 3 7 4 (2 ) 15 , 3 7 4 (2 ) 16 , 0 7 4 (2 ) Re f u s e : Nu m b e r o f r e s i d e n t i a l c u s t o m e r s 11 , 2 0 6 (2 ) 11 , 2 9 6 (2 ) 12 , 0 5 3 (2 ) 11 , 1 2 7 (2 ) 11 , 2 5 4 (2 ) 11 , 1 2 3 (2 ) 11 , 2 9 3 (2 ) 11 , 6 5 2 (2 ) 11 , 8 6 6 (2 ) 12 , 1 2 8 (2 ) Av e r a g e d a i l y c o l l e c t i o n 15 8 1 0 9 1 1 4 1 2 2 1 8 4 1 7 7 1 7 8 1 7 9 1 8 0 18 5 (t h o u s a n d s o f p o u n d s ) (1 ) In f o r m a t i o n n o t a v a i l a b l e (2 ) Re s t a t e d n u m b e r o f s e r v i c e c o n n e c t i o n s b e g i n n i n g i n F Y 2 0 0 6 t o n u m b e r o f b i l l e d a c c o u n t s a n d a c c o u n t e d f o r c u s t o m e r s o u t s i d e t h e C i t y t h a t a r e b i l l e d e v e r y 2 m o n t h s . So u r c e : C i t y o f A z u s a P o l i c e D e p a r t m e n t C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t C i t y o f A z u s a R e c r e a t i o n D e p a r t m e n t C i t y o f A z u s a P u b l i c W o r k s D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 2 4 - O p e r a t i n g I n di c a t o r s b y F u n c t i o n La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 166 20 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Po l i c e : Stations 11 1 1 1 1 1 1 1 1 Pu b l i c W o r k s : St r e e t s ( l i n e a l m i l e s ) 17 0 1 7 0 1 7 0 1 7 0 1 7 1 1 7 0 1 7 4 1 7 6 1 7 7 1 7 8 Traffic s ignals 525 25 25 25 35 25 35 35 55 6 Pa r k s a n d r e c r e a t i o n : Parks 101 01 31 31 31 31 51 61 72 0 Park a creage 585 86 06 16 16 16 46 47 78 4 Community c enters 22 3 3 3 3 3 3 3 3 Wa t e r : Wa t e r m a i n s ( m i l e s ) 30 5 3 0 8 3 1 1 3 1 2 3 1 5 3 1 5 3 1 5 3 1 5 3 1 5 3 1 5 Nu m b e r o f f i r e h y d r a n t 2, 5 2 5 2 , 5 7 5 2 , 5 8 5 2 , 5 9 4 2 , 5 9 4 2 , 6 0 0 2 , 8 1 0 2 , 8 1 5 2 , 8 2 0 2 , 8 2 0 Ma x i m u m d a i l y c a p a c i t y 40 , 0 0 0 4 0 , 0 0 0 4 0 , 0 0 0 4 0 , 0 0 0 4 0 , 0 0 0 4 0 , 0 0 0 7 0 , 5 0 0 7 0 , 5 0 0 7 0 , 5 0 0 7 0 , 5 0 0 (h u n d r e d c u b i c f e e t ) Li g h t : St r e e t l i g h t s 64 65 65 65 65 65 65 65 65 65 Ma x i m u m d a i l y c o n s u m p t i o n 15 3 1 6 9 1 6 9 1 6 9 1 6 9 1 6 2 1 6 2 1 6 2 1 6 2 1 6 2 (k W h ) Se w e r : Sanitary s ewers ( miles) 6 16 16 16 16 16 18 08 08 08 0 Storm s ewers ( miles) 151 51 51 51 51 51 51 61 61 6 Ma x i m u m d a i l y t r e a t m e n t c a p a c i t y 4 8 48 48 48 48 48 48 60 60 60 (c u b i c f e e t p e r s e c o n d ) So u r c e : C i t y o f A z u s a P o l i c e D e p a r t m e n t C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t C i t y o f A z u s a R e c r e a t i o n D e p a r t m e n t C i t y o f A z u s a P u b l i c W o r k s D e p a r t m e n t CI T Y O F A Z U S A Ta b l e 2 5 - C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 167 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, 2015 168