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HomeMy WebLinkAboutFY 2015-16 CAFR FinalCITY OF AZUSA CALIFORNIA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2016                    CITY OF AZUSA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016                         PREPARED BY THE FINANCE DEPARTMENT    THIS PAGE INTENTIONALLY LEFT BLANK CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................. i Organizational Chart ............................................................................................................................. vii Officials of the City of Azusa ................................................................................................................ viii GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................. ix 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, 2016 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 – SEIU Bargaining Retirement Enhancement Plan ................................................................................. 90 Schedule of Changes in the Net Pension Liability and Related Ratios – AMMA Bargaining Retirement Enhancement Plan ............................................................................... 91 Schedule of Changes in the Net Pension Liability and Related Ratios – Executive/Contract Bargaining Retirement Enhancement Plan ........................................................... 92 Schedule of Changes in the Net Pension Liability and Related Ratios – IBEW Employees Retirement Enhancement Plan ................................................................................ 93 Schedule of Contributions – Retirement Enhancement Plans ............................................................. 94 Schedule of Investment Returns – Retirement Enhancement Plans ................................................... 95 Budgetary Comparison Schedule by Department - General Fund ....................................................... 96 Budgetary Comparison Schedule - Grants and Seizure ....................................................................... 97 Note to Required Supplementary Information ...................................................................................... 98 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds ............................................................. 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ........................................................... 106 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED) Budgetary Comparison Schedules - Special Revenue Funds: State Gasoline Tax .......................................................................................................................... 112 Proposition A ................................................................................................................................... 113 Proposition C ................................................................................................................................... 114 Community Development Block Grant ............................................................................................ 115 Senior Nutrition ................................................................................................................................ 116 Public Benefit Program .................................................................................................................... 117 Air Quality Improvement .................................................................................................................. 118 Supplemental Law Enforcement ...................................................................................................... 119 Fire Safety ....................................................................................................................................... 120 Monrovia Nursery ............................................................................................................................ 121 Employee Benefits ........................................................................................................................... 122 Utility Mitigation ................................................................................................................................ 123 LACMTA .......................................................................................................................................... 124 Measure R ....................................................................................................................................... 125 AB939 Fee ....................................................................................................................................... 126 Budgetary Comparison Schedules - Capital Projects Funds: Park In-Lieu ..................................................................................................................................... 127 Public Works Endowment ................................................................................................................ 128 Combining Statement of Net Position – Nonmajor Proprietary Funds ............................................... 129 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Proprietary Funds .............................................................................. 130 Combining Statement of Cash Flows – Nonmajor Proprietary Funds ................................................ 131 Combining Statement of Net Position – Internal Service Funds ........................................................ 132 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ....................................................................................... 134 Combining Statement of Cash Flows – Internal Service Funds ......................................................... 136 Combining Statement of Changes in Assets and Liabilities – Agency Fund ...................................... 138 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Water – Enterprise Fund ............................................................................................. 139 Supplemental Statement of Revenues, Expenses and Changes in Net Position – Light – Enterprise Fund ............................................................................................... 140 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number STATISTICAL SECTION Table 1 – Net Position by Component ............................................................................................. 143 Table 2 – Change in Net Position .................................................................................................... 144 Table 3 – Fund Balances of Governmental Funds .......................................................................... 146 Table 4 – Changes in Fund Balances of Governmental Funds ...................................................... 147 Table 5 – Light Department, Electricity Sold by Type of Customer ................................................. 148 Table 6 – Electricity Rates ............................................................................................................... 149 Table 7 – Largest Electrical Customers .......................................................................................... 150 Table 8 – Water Sold by Type of Customer .................................................................................... 151 Table 9 – Water Rates ..................................................................................................................... 152 Table 10 – Largest Water Customers ............................................................................................. 153 Table 11 – Assessed Value and Estimated Actual Value of Taxable Property ............................... 154 Table 12 – Direct and Overlapping Property Rates ......................................................................... 155 Table 13 – Principal Property Tax Payers ....................................................................................... 156 Table 14 – Property Tax Levies and Collections ............................................................................. 157 Table 15 – Ratios of Outstanding Debt by Type ............................................................................. 158 Table 16 – Ratio of General Bonded Debt Outstanding .................................................................. 159 Table 17 – Direct and Overlapping Debt ......................................................................................... 160 Table 18 – Legal Debt Margin Information ...................................................................................... 161 Table 19 – Pledged Revenue Coverage ......................................................................................... 162 Table 20 – Pledged Revenue Coverage, Tax Allocation Bonds – Redevelopment Agency .......................................................... 164 Table 21 – Demographic and Economic Statistics .......................................................................... 165 CITY OF AZUSA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page Number STATISTICAL SECTION Table 22 – Principal Employers ....................................................................................................... 166 Table 23 – Full-time and Part-time Employees by Function ........................................................... 167 Table 24 – Operating Indicators by Function .................................................................................. 168 Table 25 – Capital Asset Statistics by Function .............................................................................. 169 Table 26 – Schedule of Credits ....................................................................................................... 170 THIS PAGE INTENTIONALLY LEFT BLANK 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 Co m m u n i t y De v e l o p m e n t Bl o c k G r a n t Pu r c h a s i n g Yo u t h a n d Ou t r e a c h Se r v i c e s 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 Fi r e S a f e t y Wa t e r 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 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 Hu m a n Re s o u r c e s Pe r s o n n e l 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 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 SA E x e c u t i v e D i r e c t o 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 Ci t y A t t o r n e y Ac c o u n t i n g 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 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 Ci t y C l e r k ' s Of f i c e Re f u s e 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 De b t S e r v i c e Pl a n n i n g 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 Pu b l i c In f o r m a t i o n Su c c e s s o r Ag e n c y Re c r e a t i o n Ec o n o m i c De v e l o p m e n t Se n i o r N u t r i t i o n Wo m a n ' s C l u b Co n t r a c t Se r v i c e s Se n i o r C e n t e r Ri s k Ma n a g e m e n t vii 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 Councilmember March, 2017 Angel Carrillo Mayor Pro-Tem 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 Director of Public Works and City Engineer 626-812-5248 Kurt Christiansen Director of Economic & Community Development 626-812-5236 Steve Hunt 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 Talika M. Johnson Director of Finance 626-812-5202 Daryl L. Osby Fire Chief 626-974-8371 Marco Martinez City Attorney (Best, Best, & Krieger) 949-263-2603 viii Certificate of Presented to City of Azusa For its Comprehensive Annual June 30, 2015 Executive Director/CEO Financial Report for the Fiscal Year Ended Reporting in Financial for Excellence Achievement Text38:California Government Finance Officers Association ix THIS PAGE INTENTIONALLY LEFT BLANK x 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, 2016, 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. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms To the Honorable Mayor and Members of the City Council City of Azusa, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Azusa, California, as of June 30, 2016, 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. 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 schedules for the general fund and grants and seizure special revenue 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. 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 To the Honorable Mayor and Members of the City Council City of Azusa, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 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 December 28, 2016 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 City of Azusa Management’s Discussion and Analysis June 30, 2016 As management of the City of Azusa, California, we offer this narrative overview and analysis of the financial activities of the City of Azusa for the fiscal year ended June 30, 2016. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on pages i through vi of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2016 by $103,715,028 (net position). Total City assets of $277,112,325 include $154,300,230 or 55.7% of non-current assets attributed to capital assets, net of depreciation. Total City liabilities of $174,658,156 include $160,487,597 or 91.9% of long-term liabilities attributed mainly to tax allocation bonds, certificates of participation and pension liabilities. As of June 30, 2016, the City’s governmental funds reported combined fund balances of $33,331,619. At the end of the current fiscal year, the total fund balance for the General Fund was increased by $3,605,997 to $23,153,179. Total General Fund revenues received for the year were $39,238,567 and total General Fund expenditures for the year were $32,500,505, an excess of revenues over expenditures amounting to $6,738,062. 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 and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Azusa is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). 5 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, Public Works, and Grants & Seizures. The business-type activity of the City includes the City’s Water, Light, Sewer/Wastewater, and Refuse Contract Utility operations. The government-wide financial statements include not only the City of Azusa itself (known as the primary government), but also the legally separate Successor Agency to the former Redevelopment Agency of the City of Azusa (“Successor Agency”) and the Azusa Public Financing Authority for which the City of Azusa is financially accountable. Financial information for these component units has been included as an integral part of the primary government. 2) Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Azusa, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Azusa maintains 23 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund 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 21 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 Proprietary funds provide the same type of information as the government-wide financial statements (business type activities), only in more detail. Information is presented separately in the proprietary fund statement of net assets and in the proprietary fund statement of revenues, expenditures, and changes in net assets for the Water and Light funds. The Water and Light funds are considered to be major funds. The internal service funds are also presented in the proprietary fund financial statements. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government, and the City’s role is purely custodial. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. All assets reported in Fiduciary funds are offset by a liability; the accrual basis of accounting is used to recognize receivables and payables. 3) Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other supplementary information. The combining financial statements and schedules referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the notes to the basic financial statements. Government-wide Financial Analysis The following table presents a summary of the City’s assets, liabilities and net position for its governmental and business type activities. As noted earlier, a government’s net asset position may serve over time as a useful indicator of its financial position. 2016 2015 2016 2015 2016 2015 Current and other assets 45,655,734$ 37,982,057$ 77,156,361$ 79,044,253$ 122,812,095$ 117,026,310$ Capital assets, net 35,170,643 29,912,255 119,129,587 123,750,707 154,300,230 153,662,962 Total assets 80,826,377 67,894,312 196,285,948 202,794,960 277,112,325 270,689,272 Deferred charge on refunding - - 1,677,882 1,475,168 1,677,882 1,475,168 Deferred pension related items 4,369,370 4,124,387 1,477,914 821,336 5,847,284 4,945,723 Total deferred outflows of resources 4,369,370 4,124,387 3,155,796 2,296,504 7,525,166 6,420,891 Current liabilities 5,005,885 3,732,207 9,164,674 11,191,721 14,170,559 14,923,928 Long-term liabilities 77,048,426 66,088,846 83,439,171 88,248,100 160,487,597 154,336,946 Total liabilities 82,054,311 69,821,053 92,603,845 99,439,821 174,658,156 169,260,874 Deferred pension related items 4,651,415 9,833,770 1,612,892 2,855,927 6,264,307 12,689,697 Total deferred inflows of resources 4,651,415 9,833,770 1,612,892 2,855,927 6,264,307 12,689,697 Net investment in capital assets 33,586,894 28,121,302 56,985,265 53,700,812 90,572,159 81,822,114 Restricted 12,664,389 10,502,851 11,448,778 15,085,506 24,113,167 25,588,357 Unrestricted (47,761,262) (46,260,277) 36,790,964 34,009,398 (10,970,298) (12,250,879) Total net position (deficits)(1,509,979)$ (7,636,124)$ 105,225,007$ 102,795,716$ 103,715,028$ 95,159,592$ Summary of Net Position (Deficits) for the year ended June 30 Governmental Business Type Activities Activities Total As of June 30, 2016, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $103,715,028. This represents an increase of $8.6 million from the prior year and is mainly attributed to the increase in investment of capital assets, net of related debt. The largest portion of the net position reflects the City’s $90.6 million investment in capital assets less any capital‐related 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. 7 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, 2016, the restricted assets were $24.1 million of the total net position. Of this amount, $10.2 million is for a rate stabilization fund, $5.0 million is restricted for community development projects such as transportation projects and $1.2 million for capital projects such as street repair and maintenance. The remaining amount relates to Police grants. At June 30, 2016 the unrestricted net position was a negative $11.0 million due 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 following chart shows the comparison of the three components of net position for Fiscal Years 2015-16 and 2014-15 (in millions): Governmental activities. The following condensed summary of activities of the City’s governmental activities for the year ended June 30, 2016 shows total net position is a negative $1,509,979 an increase of $6,126,145 (80.2%) from prior year and primarily attributable the extraordinary loss of $4.1 million recognized in FY 2014-15; the remaining $2.0 million increase is attributed to positive operating results, where revenues exceeded expenditures. Invested in Capital Assets, Net of Related Debt Restricted Unrestricted Total Net Position FY 14/15 $81.8 $25.6 $(12.3) $95.1 FY 15/16 $90.6 $24.1 $(11.0) $103.7  $(15.0)  $‐  $15.0  $30.0  $45.0  $60.0  $75.0  $90.0  $105.0 Government‐wide Net Assets Year Ended June 30, 2016 8 Business type activities. Business type activities net position totaled $105,225,007, an increase of $2,429,291 (2.4%) from the prior year and attributed to positive operating results. 2016 2015 2016 2015 2016 2015 Program Revenues: Charges for services 9,369,835$ 9,492,311$ 66,927,275$ 73,519,764$ 76,297,110$ 83,012,075$ Operating contributions and grants 6,435,839 13,916,073 - - 6,435,839 13,916,073 Capital contributions and grants 328,662 408,905 - - 328,662 408,905 General Revenues: Taxes 32,172,021 31,314,539 630,981 574,179 32,803,002 31,888,718 Investment earnings 183,908 353,285 532,303 378,713 716,211 731,998 Miscellaneous 1,709,757 629,507 2,347,066 224,680 4,056,823 854,187 Total Revenues 50,200,022 56,114,620 70,437,625 74,697,336 120,637,647 130,811,956 Expenses: General Government 10,945,471 7,834,391 - - 10,945,471 7,834,391 Public Safety 22,689,580 21,279,643 - - 22,689,580 21,279,643 Community Development 2,605,120 2,384,308 - - 2,605,120 2,384,308 Parks and Recreation 4,546,965 3,878,961 - - 4,546,965 3,878,961 Public Works 5,331,169 5,019,152 - - 5,331,169 5,019,152 Interest on long-term debt 517,395 699,155 - - 517,395 699,155 Water - - 19,429,769 21,497,271 19,429,769 21,497,271 Light - - 41,383,802 44,328,679 41,383,802 44,328,679 Sewer/Wastewater - - 2,131,684 2,368,124 2,131,684 2,368,124 Refuse Contract - - 3,342,897 3,042,337 3,342,897 3,042,337 Total Expenses 46,635,700 41,095,610 66,288,152 71,236,411 112,923,852 112,332,021 Increase/(decrease) in net position before transfers 3,564,322 15,019,010 4,149,473 3,460,925 7,713,795 18,479,935 Extraordinary items - (4,113,065) - - - (4,113,065) Transfers 1,652,338 1,458,028 (1,652,338) (1,458,028) - - Change in Net Position 5,216,660 12,363,973 2,497,135 2,002,897 7,713,795 14,366,870 Net Position (Deficits) - Beginning (7,636,124) 29,395,743 102,795,716 114,845,516 95,159,592 144,241,259 Restatement 909,485 (49,395,840) (67,844) (14,052,697) 841,641 (63,448,537) Net Position (Deficits) - Ending (1,509,979)$ (7,636,124)$ 105,225,007$ 102,795,716$ 103,715,028$ 95,159,592$ Summary of Changes in Net Position (Deficits) for the year ended June 30 Governmental Business Type Activities Activities Total The City’s total revenues are $120,637,647 and the costs of all programs and services are $112,923,852. Fiscal year 2015-16 revenues decreased by $10,174,309 (7.8%). Expenses increased by $591,831 (0.5%) from prior year. Key factors include: The decrease of $10.2 million in the governmental activities revenue was mainly due to a $11.0 million forgiven loan recorded in FY 2014-15. The decrease was offset by $0.9 million of additional revenues received from taxes, which is attributable to the increased economic development activities in the City. Charges for services decreased $6.7 million, primarily due lower Water and Light Fund sales revenues as a result of imposed water drought restrictions and energy cost savings passed on through retail rates, respectively. Miscellaneous revenues of $4.1 million increased $3.2 million over FY 2014-15. The increase is attributable to recognition of light and water fund recognition of revenues from developer deposits on hand of approximately $2.2 million; a pass-through payment received from the residuals of the former redevelopment agency of $530,651, an increase of $404,113; one-time settlement monies of $275,625 from Los Angeles County; and recognition of a $190,497 increase in the fair market value of investments. 9 Key elements of this year’s summary of activities are as follows: Property tax revenue increased by $602,569 (7.1%), Sales tax revenue increased by a $471,684 (6.3%) and Franchise fees increased by $246,529 (3.4%) from the prior year. Charges for services revenue decreased by 1.3% or $122,476; Use of money and property had a positive balance of $183,908 primarily due to interest income earned from an improved cash position. Transient Occupancy Taxes (“TOT”) increased by 32.9% or $86,150 primarily due to the voter- approved increase in the TOT rate from 7.5% to 10.0%. Charges for  services 19.4% Contributions &  grants 14.0% Property taxes 18.9% Sales taxes 16.6% Franchise taxes 15.7% Business licenses  taxes 4.1% Utility users  taxes 6.8% Other taxes 4.2% Investment  earnings/other 0.3% Revenues by Source‐Governmental Activities Year  Ended June 30, 2016 10 Total Governmental Activities expenses increased $5.5 million (13.5%) over prior year. Total General Government and Parks and Recreation expenses increased $3.1 million (39.7%) and $668,004 (17.2%), respectively, compared to prior year. The increases are mainly due to salaries and benefits related to filling of vacant positions and draw down of leave balances to lower the City’s exposure to future high leave bank payouts. Public Safety increased by $1,409,936 (6.7%) primarily due to retirement payouts. Public Works increased by $312,017 (6.2%) attributable to special studies and outsourcing of engineering services due to the high volume of transportation related projects. Community development expenditures increased $220,812 (9.3%) mainly due to the increase in transactions related to development throughout the City. Financial Analysis of the City’s Funds As noted earlier, the City of Azusa uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. This information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending during the fiscal year. General  government 23.5% Public safety 48.7% Community  development 5.6% Parks and  recreation 9.7% Public works 11.4% Interest & fiscal  charges 1.1% Expense by Activities‐Governmental Activities Year  Ended June 30, 2016 11 At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $33,331,619, an increase of $2,810,609 in comparison with the prior year’s revised fund balance. The increase is attributed to higher General Fund revenues, offset by a decrease of $3,231,730 in capital project restrictions. In addition, Advances to the Successor Agency increased to $9,750,019 from $9,276,337 because of interest earned on one of the former Redevelopment property loans reinstated by the Department of Finance. The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2015-16, its fund balance increased by $3,129,142, primarily as a result of increased tax and franchise fee revenues and interest earnings related to Successor Agency loan reinstatements. At the end of the current fiscal year, the General Fund total fund balance was $23,153,179. 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 $39,710,818. Total unrestricted net position increased by $2,737,959 (7.4%) and total net position increased by $2,429,291 (2.3%) from the previous fiscal year. Unrestricted net position of the City’s Water Utility at the end of the year amounted to $27,293,656, an increase of $1,886,114 (7.4%) Total net position also increased by $912,606 (1.7%) from the previous fiscal year. Water revenues were down by $838,429 and expenses decreased by $1,911,451. The decrease in revenues is a reflection of water conservation due to drought conditions and the decrease in expenses reflects a one-time $2.0 million purchase of supplemental water supply recoded in FY 14-15. Unrestricted net position of the City’s Light Utility at the end of the year amounted to $9,970,838. Total unrestricted net position increased by $214,821 (2.2%) and total net position also increased by $1,083,040 (2.5%) from the previous fiscal year. Light revenues and expenses were down by $3,848,899 (8.3%) and $3,008,775 (6.7%), respectively, from prior year. The decreases are a result of energy cost savings which were passed on as savings through retail rates. 12 The following chart highlights total revenue and total expenses for each of the business type activities for fiscal year end June 30, 2016. Water Light Sewer/ Wastewater Refuse Contract Revenue $20.9 $42.7 $2.7 $4.1 Expenses $20.0 $41.6 $2.3 $4.1  $‐  $5.0  $10.0  $15.0  $20.0  $25.0  $30.0  $35.0  $40.0  $45.0  $50.0 Business Type Activities ‐Revenues and Expenses  for the year ended June 30  13 General Fund Budgetary Highlights Following is a summary of budgetary changes and actual results for General Fund, revenues, expenditures, and other financing sources: Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Taxes 28,257,445$ 28,332,445$ 29,983,620 1,651,175$ Charges for services 2,325,805 2,361,805 2,435,877 74,072 Assessments 1,824,745 1,771,595 1,875,271 103,676 Other revenue 2,870,680 5,129,725 4,943,799 (185,926) Total revenue 35,278,675 37,595,570 39,238,567 1,642,997 Expenditures: Operations 29,768,710 30,052,197 30,804,346 (752,149) Capital Outlay - 500,000 496,083 3,917 Debt Service 1,188,685 1,188,685 1,200,076 (11,391) Total expenditures 30,957,395 31,740,882 32,500,505 (759,623) Excess of revenues over expenditures 4,321,280 5,854,688 6,738,062 2,402,620 Other Financing Sources/(Uses): Transfers in 1,413,515 1,413,515 1,413,515 - Transfers out 5,483,980 5,704,880 5,022,435 682,445 Total other financing sources (uses)(4,070,465) (4,291,365) (3,608,920) 682,445 Net change in fund balance 250,815 1,563,323 3,129,142 1,565,819 Fund balance beginning of year 20,024,037 20,024,037 20,024,037 - Fund balance end of year $20,274,852 $21,587,360 $23,153,179 $1,565,819 General Fund Budgetary Summary Revenues, Expenditures, and Changes in Fund Balance June 30, 2016 Budgeted Amounts The difference between the original expenditure budget and the final amended expenditure budget was an increase of $1,312,508 with highlights as follows: Various employee group contractual agreements such as vacation payout and retroactive compensation budgets were increased as a result of successful labor negotiations. Public Safety budget rose due to contract obligations and retirement costs. The budgets of the: City Clerk department was increased due to staffing re-organization; Public Works department increased due to special studies and outsourcing of engineering services resulting from a high volume of transportation related projects; Human Resources department rose to provide needed part-time hours. 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, 2016 amounted to $154,300,230 (net of accumulated depreciation). This investment includes land, construction in progress, land improvements, buildings and structures, machinery and equipment, automotive equipment and infrastructure. 14 2016 2015 2016 2015 2016 2015 Land 1,819,536$ 1,319,536$ 2,988,973$ 2,988,973$ 4,808,509$ 4,308,509$ Construction in Progress 1,728,657 1,333,303 19,331 825,486 1,747,988 2,158,789 Land Improvements 1,204,276 1,327,038 382,045 420,617 1,586,321 1,747,655 Buildings and Structures 6,674,661 6,796,645 12,410,435 12,905,633 19,085,096 19,702,278 Machinery and Equipment 1,179,811 1,418,399 2,601,200 2,952,321 3,781,011 4,370,720 Automotive Equipment 585,195 691,136 332,647 290,069 917,842 981,205 Infrastructure 21,978,507 17,026,198 100,394,956 103,367,608 122,373,463 120,393,806 Total 35,170,643$ 29,912,255$ 119,129,587$ 123,750,707$ 154,300,230$ 153,662,962$ Capital Assets for the year ended June 30 (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 $107,434,410. Of this amount, $37,066,091 is a liability of the Governmental Activities and $70,368,319 is a liability of the Business Type Activities. The increase in the outstanding balances is the result of GASB 68 reporting. 2016 2015 2016 2015 2016 2015 Employee Leave Benefits 3,778,294$ 3,704,926$ 1,182,274$ 1,369,793$ 4,960,568$ 5,074,719$ Net OPEB Liability 14,751,995 12,287,102 - 14,751,995 12,287,102 Advance from the Successor Agency 8,208,833 8,208,833 - 8,208,833 8,208,833 2003 COPS 2,020,000 2,285,000 780,000 1,400,000 2,800,000 3,685,000 2006 Water Revenue Bonds - -52,270,000 - 52,270,000 2008 Taxable Pension Funding Bond 2,240,000 3,205,000 - 2,240,000 3,205,000 2011 Sewer Installment Loan - 4,365,000 4,730,000 4,365,000 4,730,000 2012 Electric Refunding Bond - 5,820,000 5,820,000 5,820,000 5,820,000 2012 Water Refunding Bonds - 6,645,000 7,355,000 6,645,000 7,355,000 2015 Water Refunding Bonds - 47,740,000 - 47,740,000 - 2016 T.R.I.P Installment Sale 3,570,000 - -- 3,570,000 - Claims and Judgments Payable 2,317,141 1,430,273 - 2,317,141 1,430,273 Unamortized Premium/(Discount)179,828 34,622 3,836,045 3,700,121 4,015,873 3,734,743 Total 37,066,091$ 31,155,756$ 70,368,319$ 76,644,914$ 107,434,410$ 107,800,670$ Outstanding Debt for the year ended June 30 Governmental Business Type Activities Activates Total Additional information on the City’s long-term debt can be found in Note 5 of Notes to the Basic Financial Statements. Economic Factors and Next Year’s Budgets and Rates The revenue projections for the 2016-17 General Fund adopted budget reflected a growth of 8.5% over the prior year’s final budget. Property and sales taxes are expected to continue to grow modestly due to the home sales in Rosedale and other new construction throughout the City. The projected growth also includes one-time revenues related to property sales. General Fund expenditures, including transfers out and capital outlay, were higher by less than 1.0% for the 2016-17 adopted budget. The increase reflects higher costs for: City Clerk department re-organization; Los Angeles County fire service contractual obligation; professional services in the Public Works department; and the addition of personnel positions in several departments. 15 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 $3.2 million, which includes one-time revenues of $2.0 million, for the General Fund without any reductions in services and added 6.0 FTE to personnel positions. Without the one-time revenues, the projected surplus is still $1.2 million. Rising retirement costs, such as pension and retiree health care, are main concerns for the City. Although the City successfully negotiated contracts with six of its seven bargaining units, where all units agreed to pay between 7.0-9.0% of the employer’s portion of PERS contributions, continued negotiations with employee bargaining groups will further address solutions to the pension and retiree health care liabilities. In addition, the State’s dissolution of redevelopment agencies continues to affect the City. The goal to develop properties owned by the former redevelopment agency is moving forward in order to generate additional revenues to help address additional costs in the long term. Furthermore, it is projected that property tax revenues will keep increasing as new home sales and the improvement in the economy continue. Staff will continue to be prudent with its budget and to monitor any legislative action that could impact the financial condition in Azusa. Request for Information This financial report is designed to provide a general overview of the financial position of the City of Azusa for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to City of Azusa Finance Department, 213 E. Foothill Blvd., Azusa, CA 91702. 16 CITY OF AZUSA STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 19,142,506$ 40,277,638$ 59,420,144$ Receivables: Accounts 4,666,938 8,781,280 13,448,218 Taxes 2,583,658 - 2,583,658 Notes and loans 2,088,078 49,127 2,137,205 Accrued interest 103,406 25,477 128,883 Internal balances (6,749,062) 6,749,062 - Due from other governments 16 - 16 Due from Successor Agency 9,750,019 2,616,012 12,366,031 Prepaid costs 142,310 16,045 158,355 Inventories 142,606 1,826,743 1,969,349 Land held for resale 7,384,436 - 7,384,436 Restricted assets: Cash and investments 2,331,055 13 2,331,068 Cash with fiscal agent 4,069,768 6,603,340 10,673,108 Cash held for rate stabilization - 10,211,624 10,211,624 Capital assets not being depreciated 3,548,193 3,008,304 6,556,497 Capital assets, net of depreciation 31,622,450 116,121,283 147,743,733 Total Assets 80,826,377 196,285,948 277,112,325 Deferred Outflows of Resources: Deferred charge on refunding - 1,677,882 1,677,882 Deferred pension related items 4,369,370 1,477,914 5,847,284 Total Deferred Outflows of Resources 4,369,370 3,155,796 7,525,166 Liabilities: Accounts payable 2,070,965 3,623,336 5,694,301 Accrued liabilities 1,755,317 978,155 2,733,472 Accrued interest 122,101 1,291,626 1,413,727 Unearned revenue 1,034,559 - 1,034,559 Deposits payable 12,370 3,261,485 3,273,855 Due to other governments 10,573 10,072 20,645 Noncurrent liabilities: Due within one year 6,394,376 3,851,705 10,246,081 Due in more than one year 15,919,720 66,516,614 82,436,334 Net OPEB liability 14,751,995 - 14,751,995 Net pension liability 39,982,335 13,070,852 53,053,187 Total Liabilities 82,054,311 92,603,845 174,658,156 Deferred Inflows of Resources: Deferred pension related items 4,651,415 1,612,892 6,264,307 Net Position: Net investment in capital assets 33,586,894 56,985,265 90,572,159 Restricted for: Community development projects 4,991,034 - 4,991,034 Public safety 147,294 - 147,294 Capital projects 7,038,060 - 7,038,060 Debt service 488,001 1,237,154 1,725,155 Rate stabilization - 10,211,624 10,211,624 Unrestricted (47,761,262) 36,790,964 (10,970,298) Total Net Position (1,509,979)$ 105,225,007$ 103,715,028$ JUNE 30, 2016 Primary Government See Notes to Financial Statements 17 CITY OF AZUSA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government 10,945,471$ 4,157,243$ 187,941$ -$ Public safety 22,689,580 821,281 602,642 327,052 Community development 2,605,120 2,463,012 508,834 - Parks and Recreation 4,546,965 1,188,778 265,207 - Public works 5,331,169 739,521 4,871,215 1,610 Interest on long-term debt 517,395 - - - Total Governmental Activities 46,635,700 9,369,835 6,435,839 328,662 Business-Type Activities: Water 19,429,769 20,317,053 - - Light 41,383,802 40,464,630 - - Sewer/ Wastewater 2,131,684 2,679,660 - - Refuse Contract 3,342,897 3,465,932 - - Total Business-Type Activities 66,288,152 66,927,275 - - Total Primary Government 112,923,852$ 76,297,110$ 6,435,839$ 328,662$ 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 Transfers Total General Revenues and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year Program Revenues See Notes to Financial Statements 18 Primary Government Governmental Business-Type Activities Activities Total (6,600,287)$ -$ (6,600,287)$ (20,938,605) - (20,938,605) 366,726 - 366,726 (3,092,980) - (3,092,980) 281,177 - 281,177 (517,395) - (517,395) (30,501,364) - (30,501,364) - 887,284 887,284 - (919,172) (919,172) - 547,976 547,976 - 123,035 123,035 - 639,123 639,123 (30,501,364) 639,123 (29,862,241) 9,134,084 630,981 9,765,065 347,965 - 347,965 8,001,941 - 8,001,941 7,575,506 - 7,575,506 1,995,000 - 1,995,000 3,266,383 - 3,266,383 1,851,142 - 1,851,142 183,908 532,303 716,211 1,709,757 2,347,066 4,056,823 1,652,338 (1,652,338) - 35,718,024 1,858,012 37,576,036 5,216,660 2,497,135 7,713,795 (7,636,124) 102,795,716 95,159,592 909,485 (67,844) 841,641 (1,509,979)$ 105,225,007$ 103,715,028$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 19 CITY OF AZUSA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2016 Other Total Governmental Governmental General Funds Funds Assets: Pooled cash and investments 6,697,068$ -$ 10,328,680$ 17,025,748$ Receivables: Accounts 408,050 3,994,804 263,988 4,666,842 Taxes 2,578,727 - 4,931 2,583,658 Notes and loans 4,525 - 2,081,675 2,086,200 Accrued interest 98,435 - 4,714 103,149 Prepaid costs 37,860 8,730 4,428 51,018 Due from other governments 16 - - 16 Inventories 142,606 - - 142,606 Land held for resale 7,384,436 - - 7,384,436 Restricted assets: Cash and investments 2,300,762 - 30,293 2,331,055 Cash and investments with fiscal agents 72,849 - 3,996,919 4,069,768 Advances to Successor Agency 9,750,019 - - 9,750,019 Total Assets 29,475,353$ 4,003,534$ 16,715,628$ 50,194,515$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 565,994$ 231,646$ 800,829$ 1,598,469$ Accrued liabilities 1,535,793 13,036 152,101 1,700,930 Unearned revenues 30,000 826,569 177,990 1,034,559 Deposits payable - - 12,370 12,370 Due to other governments 10,573 - - 10,573 Due to other funds - 1,716,020 103,228 1,819,248 Advances from other funds 4,179,814 - 750,000 4,929,814 Total Liabilities 6,322,174 2,787,271 1,996,518 11,105,963 Deferred Inflows of Resources: Unavailable revenues - 3,666,713 2,090,220 5,756,933 Total Deferred Inflows of Resources - 3,666,713 2,090,220 5,756,933 Fund Balances: Nonspendable: Inventories 142,606 - - 142,606 Prepaid costs 37,860 8,730 4,428 51,018 Land held for resale 7,384,436 - - 7,384,436 Notes and loans 4,525 - - 4,525 Advances to Successor Agency 9,750,019 - - 9,750,019 Restricted for: Community development projects - - 4,991,022 4,991,022 Public safety - - 147,294 147,294 Capital projects - - 7,038,060 7,038,060 Debt service - - 483,585 483,585 Unassigned 5,833,733 (2,459,180) (35,499) 3,339,054 Total Fund Balances 23,153,179 (2,450,450) 12,628,890 33,331,619 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 29,475,353$ 4,003,534$ 16,715,628$ 50,194,515$ Special Revenue Funds Grants and Seizure 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, 2016 Fund balances of governmental funds 33,331,619$ 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.34,746,557 Deferred Outflows related to contributions made after the actuarial measurement date for the net pension liability. Miscellaneous contributions made subsequent to measurement date 1,254,472$ Safety contributions made subsequent to measurement date 2,408,176 Safety adjustments due to differences in proportions 334,308 PARS differences between expected and actual experience 37,119 PARS changes of assumptions 57,232 PARS net difference between projected and actual earnings on investment 129,951 4,221,258 Long-term debt and compensated absences that have not been included in the governmental fund activity. Long-term liabilities (16,218,661) Compensated Absences (3,604,383) (19,823,044) 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.(14,751,995) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.(122,101) 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. Miscellaneous net pension liability (13,627,758) Safety net pension liability (22,831,275) PARS net pension liability (1,541,783) (38,000,816) Deferred Inflows related to unrecognized actuarial gains and losses for the net pension liability: Miscellaneous change in assumptions (818,044) Safety change in assumptions (1,253,696) Miscellaneous difference between expected and actual experiences (615,137) Safety difference between expected and actual experiences (272,580) Safety net difference between projected and actual earnings on plan investments (635,381) Miscellaneous net difference between projected and actual earnings on plan investments (530,069) Safety change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions (315,936) PARS difference between expected and actual experience (71,702) (4,512,545) 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.5,756,933 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.(2,355,845) Net Position of governmental activities (1,509,979)$ See Notes to Financial Statements 21 CITY OF AZUSA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Other Total Governmental Governmental General Funds Funds Revenues: Taxes 29,983,620$ 48,165$ 2,140,236$ 32,172,021$ Assessments 1,875,271 - - 1,875,271 Licenses and permits 1,096,325 - - 1,096,325 Intergovernmental 496,497 1,126,742 2,012,651 3,635,890 Charges for services 2,435,877 54,538 2,015,429 4,505,844 Use of money and property 361,500 7,852 73,635 442,987 Fines and forfeitures 1,328,383 - - 1,328,383 Contributions 19,703 1,042 78,849 99,594 Miscellaneous 1,641,391 94,213 23,869 1,759,473 Total Revenues 39,238,567 1,332,552 6,344,669 46,915,788 Expenditures: Current: General government 7,248,290 - 297,153 7,545,443 Public safety 17,732,585 332,265 4,425,970 22,490,820 Community development 1,674,631 - 913,530 2,588,161 Parks and recreation 3,453,112 347,419 411,629 4,212,160 Public works 695,728 144,992 3,463,659 4,304,379 Capital outlay 496,083 3,954,018 1,983,217 6,433,318 Debt service: Principal retirement 965,000 - 265,000 1,230,000 Interest and fiscal charges 235,076 - 327,454 562,530 Total Expenditures 32,500,505 4,778,694 12,087,612 49,366,811 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,738,062 (3,446,142) (5,742,943) (2,451,023) Other Financing Sources (Uses): Transfers in 1,413,515 - 5,425,558 6,839,073 Transfers out (5,022,435) - (293,905) (5,316,340) Debt issued - - 3,570,000 3,570,000 Bond premium - - 168,899 168,899 Total Other Financing Sources (Uses)(3,608,920) - 8,870,552 5,261,632 Net Change in Fund Balances 3,129,142 (3,446,142) 3,127,609 2,810,609 Fund Balances, Beginning of Year, as previously reported 19,547,182 995,692 9,501,281 30,044,155 Restatements 476,855 - - 476,855 Fund Balances, Beginning of Year, as restated 20,024,037 995,692 9,501,281 30,521,010 Fund Balances, End of Year 23,153,179$ (2,450,450)$ 12,628,890$ 33,331,619$ Special Revenue Funds Grants and Seizure 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, 2016 Net change in fund balances - total governmental funds 2,810,609$ 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 6,410,824$ Depreciation (1,532,357) Gain/(loss) on sale of capital assets (3,166) 4,875,301 The issuance of long-term debt provides current financial resources to governmental funds, while repayment of long-term debt consumes the current financial resources. Issuance of long-term debt (3,570,000) Premium from issuance of long-term debt (168,899) Principal repayments 1,230,000 Amortization of bond premiums/discounts 23,693 (2,485,206) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.21,442 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.(84,747) 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.(2,464,893) 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 151,562 Agent Miscellaneous PERS 279,342 Retirement Enhancement Plan PARS (64,575) 366,329 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.3,319,792 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.(1,141,967) Change in net position of governmental activities 5,216,660$ See Notes to Financial Statements 23 CITY OF AZUSA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2016 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 24,493,800$ 10,874,813$ 3,613,098 $ 38,981,711$ 3,412,685 $ Receivables: Accounts 3,095,154 4,203,542 779,726 8,078,422 702,954 Notes and loans 2,195 40,055 3,160 45,410 5,595 Accrued interest - - 1,809 1,809 23,925 Prepaid costs 5,477 10,568 - 16,045 91,292 Due from other funds 1,819,248 - - 1,819,248 - Inventories - 1,826,743 - 1,826,743 - Restricted: Cash and investments - 13 - 13 - Cash with fiscal agent 3,004,269 2,142,582 1,456,489 6,603,340 - Cash held for rate stabilization - 10,211,624 - 10,211,624 - Total Current Assets 32,420,143 29,309,940 5,854,282 67,584,365 4,236,451 Noncurrent: Advances to Successor Agency 2,616,012 - - 2,616,012 - Advances to other funds 4,023,814 906,000 - 4,929,814 - Capital assets - net of accumulated depreciation 79,913,587 28,266,476 10,433,586 118,613,649 940,024 Total Noncurrent Assets 86,553,413 29,172,476 10,433,586 126,159,475 940,024 Total Assets 118,973,556 58,482,416 16,287,868 193,743,840 5,176,475 Deferred Outflows of Resources: Deferred charge on refunding 1,343,746 334,136 - 1,677,882 - Deferred pension related items 427,429 481,283 82,577 991,289 634,737 Total Deferred Outflows of Resources 1,771,175 815,419 82,577 2,669,171 634,737 Total Assets and Deferred Outflows of Resources:120,744,731$ 59,297,835$ 16,370,445$ 196,413,011$ 5,811,212$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 1,975,102$ 963,348$ 576,397$ 3,514,847$ 580,985$ Accrued liabilities 135,658 157,513 34,993 328,164 704,378 Accrued interest 1,119,269 109,507 62,850 1,291,626 - Deposits payable 884,630 2,376,855 - 3,261,485 - Due to other governments 10,072 - - 10,072 - Accrued compensated absences 351,648 324,887 56,127 732,662 381,943 Accrued claims and judgments - - - - 2,317,141 Bonds, notes, and capital leases 1,885,000 650,000 375,000 2,910,000 - Total Current Liabilities 6,361,379 4,582,110 1,105,367 12,048,856 3,984,447 Noncurrent: Accrued compensated absences 9,804 215,188 - 224,992 16,588 Bonds, notes, and capital leases 56,242,954 6,043,091 3,990,000 66,276,045 - Net pension liability 4,214,874 3,704,332 1,132,877 9,052,083 6,000,288 Total Noncurrent Liabilities 60,467,632 9,962,611 5,122,877 75,553,120 6,016,876 Total Liabilities 66,829,011 14,544,721 6,228,244 87,601,976 10,001,323 Deferred Inflows of Resources: Deferred pension related items 488,416 520,538 173,158 1,182,112 569,650 Total Deferred Inflows of Resources 488,416 520,538 173,158 1,182,112 569,650 Net Position: Net investment in capital assets 25,997,673 22,948,935 7,522,719 56,469,327 940,024 Restricted for debt service 135,975 1,101,179 - 1,237,154 - Restricted for rate stabilization - 10,211,624 - 10,211,624 - Unrestricted 27,293,656 9,970,838 2,446,324 39,710,818 (5,699,785) Total Net Position 53,427,304 44,232,576 9,969,043 107,628,923 (4,759,761) Total Liabilities, Net Position and Deferred Inflows of Resources 120,744,731$ 59,297,835$ 16,370,445$ 196,413,011$ 5,811,212$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 107,628,923$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (2,433,987) Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds 30,071 Net Position per Statement of Net Position 105,225,007$ 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, 2016 Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 20,317,053$ 40,464,630$ 6,145,592$ 66,927,275$ 10,846,101$ Interdepartmental charges 336,923 1,911,972 - 2,248,895 - Miscellaneous 11,228 75,652 11,291 98,171 50,195 Lease revenue 12,800 - - 12,800 - Total Operating Revenues 20,678,004 42,452,254 6,156,883 69,287,141 10,896,296 Operating Expenses: Administration and general 6,641,423 6,794,163 912,924 14,348,510 8,769,078 Source of supply 1,187,708 25,742,199 - 26,929,907 293,707 Pumping 70,336 - - 70,336 - Transmission/collection 1,651,988 3,750,031 - 5,402,019 - Treatment 294,223 - 524,338 818,561 - Refuse collection - - 3,342,897 3,342,897 - Cost of sales and services 3,551,366 56,865 - 3,608,231 - Claims expense - - - - 2,556,766 Depreciation expense 3,752,679 1,274,013 488,339 5,515,031 219,680 Total Operating Expenses 17,149,723 37,617,271 5,268,498 60,035,492 11,839,231 Operating Income (Loss)3,528,281 4,834,983 888,385 9,251,649 (942,935) Nonoperating Revenues (Expenses): Taxes - - 630,981 630,981 - Interest revenue 228,799 265,634 25,070 519,503 5,921 Interest expense (2,089,099) (225,136) (151,839) (2,466,074) - Special franchise fees (403,189) (3,655,679) (54,244) (4,113,112) - Loss on disposal of capital assets - - - - (8,487) Gain on disposal of capital assets - - - - 455 Total Nonoperating Revenues (Expenses)(2,263,489) (3,615,181) 449,968 (5,428,702) (2,111) Income (Loss) Before Transfers 1,264,792 1,219,802 1,338,353 3,822,947 (945,046) Transfers in - - - - 261,940 Transfers out (352,186) (136,762) (866,935) (1,355,883) (428,790) Changes in Net Position 912,606 1,083,040 471,418 2,467,064 (1,111,896) Net Position: Beginning of Year, as previously reported 52,645,976 43,220,224 9,363,503 105,229,703 (3,647,865) Restatements (131,278) (70,688) 134,122 (67,844) - Beginning of Fiscal Year, as restated 52,514,698 43,149,536 9,497,625 105,161,859 (3,647,865) End of Fiscal Year 53,427,304$ 44,232,576$ 9,969,043$ 107,628,923$ (4,759,761)$ 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 2,467,064$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds 30,071 Changes in Net Position of Business-Type Activities per Statement of Activities 2,497,135$ Water Light See Notes to Financial Statements 25 CITY OF AZUSA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2016 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 22,035,878$ 41,308,875$ 6,098,914$ 69,443,667$ 10,348,620$ Cash received from/(paid to) interfund service provided 336,923 1,911,972 - 2,248,895 - Cash paid to suppliers for goods and services (6,637,658) (31,867,606) (3,847,652) (42,352,916) (2,103,654) Cash paid to employees for services (6,749,177) (6,755,059) (946,090) (14,450,326) (8,881,663) Net Cash Provided by (Used in) Operating Activities 8,985,966 4,598,182 1,305,172 14,889,320 (636,697) Cash Flows from Non-Capital Financing Activities: Cash transfers out (352,186) (136,762) (866,935) (1,355,883) (428,790) Cash transfers in - - - - 261,940 Repayment received from other funds (1,769,622) - - (1,769,622) - Repayment made to other funds - - - - (34,216) Net Cash Used in Non-Capital Financing Activities (2,121,808) (136,762) (866,935) (3,125,505) (201,066) Cash Flows from Capital and Related Financing Activities: Bond issuance proceeds 50,808,742 - - 50,808,742 - Payment to advanced refunding escrow agent (53,930,138) - - (53,930,138) - Acquisition and construction of capital assets (187,403) (628,481) (89,218) (905,102) (175,844) Principal paid on capital debt (1,800,000) (620,000) (365,000) (2,785,000) - Interest paid on capital debt (3,133,118) (237,138) (156,833) (3,527,089) - Special franchise fees paid (403,189) (3,655,679) (54,244) (4,113,112) - Cash due from advances (17,387) - (17,387) - Repayment made for advances - 25,000 - 25,000 - Proceeds from sale of capital assets - - 630,981 630,981 8,866 Net Cash Provided by (Used in) Capital and Related Financing Activities (8,662,493) (5,116,298) (34,314) (13,813,105) (166,978) Cash Flows from Investing Activities: Issuance of new loans - - (3,160) (3,160) (1,341) Repayment received on loans 959 31,416 - 32,375 234 Interest received 226,881 280,172 24,154 531,207 6,236 Net Cash Provided by Investing Activities 227,840 311,588 20,994 560,422 5,129 Net Increase (Decrease) in Cash and Cash Equivalents (1,570,495) (343,290) 424,917 (1,488,868) (999,612) Cash and Cash Equivalents at Beginning of Year 29,068,564 23,572,322 4,644,670 57,285,556 4,412,297 Cash and Cash Equivalents at End of Year 27,498,069$ 23,229,032$ 5,069,587$ 55,796,688$ 3,412,685$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)3,528,281$ 4,834,983$ 888,385$ 9,251,649$ (942,935)$ Adjustments to reconcile operating income (loss) net cash provided by (used in) operating activities: Depreciation 3,752,679 1,274,013 488,339 5,515,031 219,680 (Increase) decrease in accounts receivable 1,694,797 768,593 (57,969) 2,405,421 (527,657) (Increase) decrease in inventories - (185,907) - (185,907) - (Increase) decrease in prepaid expense (379) 735 - 356 (15,629) (Increase) decrease in deferred pension related outflows (90,694) (103,607) 4,918 (189,383) (167,827) Increase (decrease) in accounts payable 353,990 (579,472) 11,268 (214,214) (296,004) Increase (decrease) in accrued liabilities 35,885 55,588 8,315 99,788 151,565 Increase (decrease) in deposits payable (212,525) (1,553,867) - (1,766,392) - Increase (decrease) in due to other governments (23,123) - - (23,123) - Increase (decrease) in claims and judgments - - - - 886,868 Increase (decrease) in compensated absences (110,902) 5,136 (22,382) (128,148) (70,750) Increase (decrease) in net pension liability 434,471 455,516 72,347 962,334 662,706 Increase (decrease) in deferred pension related inflows (376,514) (373,529) (88,049) (838,092) (536,714) Total Adjustments 5,457,685 (236,801) 416,787 5,637,671 306,238 Net Cash Provided by (Used in) Operating Activities 8,985,966$ 4,598,182$ 1,305,172$ 14,889,320$ (636,697)$ Non-Cash Investing, Capital, and Financing Activities: Amortization of premiums (217,700)$ (13,298)$ -$ (230,998)$ 8,866$ Amortization of deferred charge on refunding 558,012 18,563 - 576,575 - Water Light See Notes to Financial Statements 26 CITY OF AZUSA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2016 Agency Funds Assets: Pooled cash and investments 6,453,149$ 4,881,822$ Receivables: Accounts 269,249 - Taxes 48,554 - Notes and loans - 1,151,482 Accrued interest - 160 Advances to City - 8,208,832 Land held for resale - 27,605,917 Restricted assets: Cash and investments with fiscal agents - 354,314 Capital assets: Capital assets, not being depreciated - 410,420 Capital assets, net of accumulated depreciation - 1,359,923 Total Assets 6,770,952$ 43,972,870 Deferred Outflows of Resources: Deferred charge on refunding 3,237,236 Total Deferred Outflows of Resources 3,237,236$ Liabilities: Accounts payable 248,063$ 101,411 Accrued liabilities 7,966 - Accrued interest - 1,031,212 Unearned revenues - 20,000 Deposits payable 6,491,878 - Due to other governments 23,045 - Long-term liabilities: Due in one year - 1,845,000 Due in more than one year - 47,142,334 Due to City of Azusa - 12,366,031 Total Liabilities 6,770,952$ 62,505,988 Net Position: Held in trust for other purposes (15,295,882) Total Net Position (15,295,882)$ 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, 2016 Additions: Taxes 3,843,267$ Interest and change in fair value of investments 106,851 Gain on sale of capital assets 107,686 Total Additions 4,057,804 Deductions: Administrative expenses 20,324 Contractual services 173,307 Interest expense 3,345,820 Depreciation expense 129,151 Loss on sale of assets 968,181 Contributions to other governments 369,605 Total Deductions 5,006,388 Changes in Net Position (948,584) Net Position - Beginning of the Year (14,232,029) Restatement (115,269) Net Position - End of the Year (15,295,882)$ Private- Purpose Trust Fund RDA Successor Agency Fund See Notes to Financial Statements 28 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 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. The Authority is financially interdependent and provide financial benefit/burden to the City. 29 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016 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. x The Grants and Seizure Fund accounts for various federal, state, and local grants which the City receives. 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 31 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as needed. The City’s fiduciary funds consist of an Agency fund and Private Purpose Trust funds. Agency funds are custodial in nature, assets equal liabilities. The Private Purpose Trust funds accounts for the assets and liabilities of the 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, 2016 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, 2016 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, 2016 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, 2016 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, by resolution, 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, 2016 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, 2016 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 38,981,711$ 3,412,685$ Restricted: Cash and investments 13 - Cash with fiscal agent 6,603,340 - Cash held for rate stabilization 10,211,624 - Total 55,796,688$ 3,412,685$ 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 ($16,218,661) long-term debt difference is as follows: Long-term debt: Certificates of participation (2,020,000)$ Taxable pension bonds (2,240,000) T.R.I.P. installment sale (3,570,000) Deferred premium on bonds and COP (to be amortized over life of debt) (179,828) Successor Agency Loan (8,208,833) Net adjustment to reduce fund balance of total governmental funds to arrive at net position of governmental activities (16,218,661)$ 38 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Organization and Summary of Significant Accounting Policies (Continued) i. Effect of New Accounting Standard During the fiscal year ended June 30, 2016, the City implemented the following Governmental Accounting Standards Board (GASB) standards GASB Statement No. 72 - Fair Value Measurement and Application. The changes resulting from this implementation are reflected in Note 3. II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. Budgetary Data The City adopts an annual budget prepared on the modified accrual basis of accounting for the general, special revenue, debt service and capital projects funds and on the accrual basis of accounting for the proprietary funds of the City. According to Section 3.04.040 of the Azusa Municipal Code, the City Council is required to adopt the annual budget on or before the first Monday in July. The City is not legally required to report on the budget approved. Where appropriations exceed actual expenditures, the excess amounts lapse but can be re-appropriated in the subsequent year subject to City Council approval. The Highway 39, Rosedale Traffic Mitigation, Public Financing Authority, 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 $100,000 or more must be approved by City Council. Spending control (legal level of control) is established by the amount of expenditures budgeted at the department level. During the year, several supplementary appropriations were necessary. Individual amendments were not material in relation to the original appropriations. 39 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 2: Stewardship, Compliance and Accountability (Continued) b. Deficit Fund Balance The following funds had a deficit fund balance as of June 30, 2016: Nonmajor Funds: Governmental: LACMTA 27$ Community Development Block Grant 22,517 Employee Benefits 12,414 Capital Projects 541 Fiduciary Funds: Private Purpose Trust Fund: Successor Agency of the Former Redevelopment Agency 15,295,882 Internal Service Funds: Consumer Services 2,403,896 Central Services 856,361 IT Services 1,945,302 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, 2016, cash and investments were reported in the accompanying financial statements as follows: Governmental Activities: Cash and investments 19,142,506$ Restricted Cash and investments 2,331,055 Cash with fiscal agents 4,069,768 Business-type activities: Cash and investments 40,277,638 Restricted Cash and investments 13 Cash with fiscal agents 6,603,340 Cash held for rate stabilization 10,211,624 Fiduciary Funds: Agency Funds: Cash and investments 6,453,149 Private-Purpose Trust: Cash and investments 4,881,822 Restricted Cash with fiscal agents 354,314 Total Cash and Investments 94,325,229$ 40 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, the carrying amount of the City’s deposits was $9,309,443 and the bank balance was $10,021,882 . The $712,439 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, 2016 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. 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, 2016, the City’s investments in Federal Agency securities consisted of investments with Federal Home Loan Bank and Federal Farm Credit Bank. At June 30, 2016, 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, 2016, 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, 2016, 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, 2016, the City has investments of $11,007,350 (13%) with Federal Farm Credit Bank, $11,007,990 (13%) with Federal Home Loan Mortgage Corporation, and $8,006,530 (9%) with Federal Home Loan Bank. Investments guaranteed by the U.S. government, investments in mutual funds and external investment pools are excluded from this requirement. 42 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 3: Cash and Investments (Continued) Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that no investment may have a maturity of more than five years without receiving prior City Council approval. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. Reserve funds associated with bond issues may have a maturity of more than five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2016, the City had the following investments and original maturities: 6 months 6 months 1 to 3 3 to 5 Fair or less to 1 year years years Value LAIF 27,967,931$ -$ -$ -$ 27,967,931$ Federal Farm Credit Bank - - 6,000,220 4,007,870 10,008,090 Federal Home Loan Bank - - 2,000,050 5,003,450 7,003,500 Federal Home Loan Mortgage Corp.- - - 8,005,740 8,005,740 Federal National Mortgage Assoc.- - 1,000,170 - 1,000,170 Certificates of Deposit - 100,333 493,410 4,708,865 5,302,608 Corporate Bonds - - 1,002,460 - 1,002,460 Money Market Mutual Funds 3,487,708 - - - 3,487,708 Cash with Fiscal Agents: Money Market Mutual Funds 14,471,694 - - - 14,471,694 Federal Farm Credit Bank - - 999,260 - 999,260 Federal Home Loan Bank - - 1,003,030 - 1,003,030 Federal Home Loan Mortgage Corp.- - - 3,002,250 3,002,250 Certificates of Deposit 245,728 - - 996,438 1,242,166 Repurchase Agreement 519,179 - - - 519,179 46,692,240$ 100,333$ 12,498,600$ 25,724,613$ 85,015,786$ Remaining Investment Maturities 43 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 3: Cash and Investments (Continued) Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2016: Totals 1 2 3 LAIF 27,967,931$ -$ 27,967,931$ -$ Federal Farm Credit Bank 10,008,090 - 10,008,090 - Federal Home Loan Bank 7,003,500 - 7,003,500 - Federal Home Loan Mortgage Corp.8,005,740 - 8,005,740 - Federal National Mortgage Assoc.1,000,170 - 1,000,170 - Certificates of Deposit 5,302,608 - 5,302,608 - Corporate Bonds 1,002,460 - 1,002,460 - Cash with Fiscal Agents: Federal Farm Credit Bank 999,260 - 999,260 - Federal Home Loan Bank 1,003,030 - 1,003,030 - Federal Home Loan Mortgage Corp 3,002,250 - 3,002,250 - Certificates of Deposit 1,242,166 - 1,242,166 - Totals 66,537,205$ -$ 65,295,039$ -$ Money Market Mutual Funds 3,487,708$ Cash with Fiscal Agents: Repurchase Agreement 519,179 Money Market Mutual Funds 14,471,694 Totals 18,478,581 Total Investments 85,015,786$ Level Investments by fair value level Investments measured at amortized cost Local Agency Investment Funds, U.S. Agency Securities, Certificates of Deposit, Corporate Bonds classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes or specified fair market value factors. 44 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 4: Capital Assets Capital asset activity for the year ended June 30, 2016, was as follows: Adjusted Beginning Ending Balance Transfers Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 1,319,536$ -$ 500,000$ -$ 1,819,536$ Construction-in-progress 1,765,933 (5,625,019) 5,587,743 - 1,728,657 Total Capital Assets Not Being Depreciated 2,652,839 (5,625,019) 6,087,743 - 3,548,193 Capital Assets, Being Depreciated: Land improvements 4,423,252 - - - 4,423,252 Buildings and structures 12,716,411 180,118 - - 12,896,529 Machinery and equipment 8,405,474 - 31,263 - 8,436,737 Automotive equipment 3,378,064 - 101,190 (272,469) 3,206,785 Infrastructure 49,433,442 5,444,901 267,833 - 55,146,176 Total Capital Assets Being Depreciated 78,356,643 5,625,019 400,286 (272,469) 84,109,479 Less Accumulated Depreciation: Land improvements 3,096,214 - 122,762 - 3,218,976 Buildings and structures 5,919,766 - 302,102 - 6,221,868 Machinery and equipment 6,987,075 - 269,851 - 7,256,926 Automotive equipment 2,686,928 - 187,067 (252,405) 2,621,590 Infrastructure 32,407,244 - 760,425 - 33,167,669 Total Accumulated Depreciation 51,097,227 - 1,642,207 (252,405) 52,487,029 Total Capital Assets Being Depreciated, Net 27,259,416 5,625,019 (1,241,921) (20,064) 31,622,450 Governmental Activities Capital Assets, Net 29,912,255$ -$ 4,845,822$ (20,064)$ 35,170,643$ 45 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 825,486 (1,179,570) 373,415 - 19,331 Total Capital Assets Not Being Depreciated 3,814,459 (1,179,570) 373,415 - 3,008,304 Capital Assets, Being Depreciated: Land improvements 1,212,318 - - - 1,212,318 Building and structures 22,635,772 - - - 22,635,772 Machinery and equipment 13,629,255 - 118,672 - 13,747,927 Automotive equipment 3,754,324 - 148,926 (23,738) 3,879,512 Infrastructure 156,436,155 1,179,570 362,728 - 157,978,453 Total Capital Assets Being Depreciated 197,667,824 1,179,570 630,326 (23,738) 199,453,982 Less Accumulated Depreciation: Land improvements 791,701 - 38,572 - 830,273 Building and structures 9,730,139 - 495,198 - 10,225,337 Machinery and equipment 10,676,934 - 469,793 - 11,146,727 Automotive equipment 3,464,255 - 106,348 (23,738) 3,546,865 Infrastructure 53,068,547 - 4,514,950 - 57,583,497 Total Accumulated Depreciation 77,731,576 - 5,624,861 (23,738) 83,332,699 Total Capital Assets Being Depreciated, Net 119,936,248 1,179,570 (4,994,535) - 116,121,283 Business-Type Activities Capital Assets, Net 123,750,707$ -$ (4,621,120)$ -$ 119,129,587$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 100,625$ Public safety 111,942 Community development 15,969 Parks and recreation 276,911 Public works 1,026,910 Internal service funds 109,850 Total 1,642,207$ Business-Type Activities: Water 3,752,679$ Light 1,274,013 Sewer/Wastewater 488,339 Internal service funds 109,830 Total 5,624,861$ 46 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016: Beginning at Ending Due within July 1, 2015 Addition Deletion June 30, 2016 one year City Compensated Absences 3,519,636$ 2,510,670$ 2,425,923$ 3,604,383$ 2,484,335$ Net OPEB Liability 12,287,102 3,127,288 662,395 14,751,995 - Advance to the Successor Agency 8,208,833 - - 8,208,833 - 2008 Taxable pension funding bonds 3,205,000 - 965,000 2,240,000 1,065,000 2016 TRIP Installment Sale - 3,570,000 - 3,570,000 80,000 27,220,571 9,207,958 4,053,318 32,375,211 3,629,335 Public Financing Authority 2003 Certificates of Participation 2,285,000 - 265,000 2,020,000 275,000 Internal Service Funds: Compensated Absences 185,290 259,334 270,713 173,911 172,900 Claims and Judgments payable 1,430,273 2,890,352 2,003,484 2,317,141 2,317,141 Total Internal Service 1,615,563 3,149,686 2,274,197 2,491,052 2,490,041 Unamortized Premiums/Discounts Premiums 46,079 168,899 25,823 189,155 - Discounts (11,457) - (2,130) (9,327) - Total Premiums/ Discounts 34,622 168,899 23,693 179,828 - Total Governmental Long-term Debt 31,155,756$ 12,526,543$ 6,616,208$ 37,066,091$ 6,394,376$ 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, 2016, is $8,208,833. 47 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 $1,175,000 on January 1 each year from 2010 through 2018. The annual principal requirements to amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2016, are as follows: Principal Interest 2017 1,065,000$ 145,600$ 2018 1,175,000 76,375 Total 2,240,000$ 221,975$ Taxable Pension Funding Bonds Series 2008 2016 Local Measure R Sales Tax Revenue (Installment Sale) Certificates of Participation On March 17, 2016, California Communities issued Local Measure R Sales Tax Revenue (Installment Sale) Certificates of Participation (T.R.I.P. – Total Road Improvement Program) in the amount of $6,355,000 to the City of San Fernando ($2,785,000) and the City of Azusa ($3,570,000). The proceeds will be used to pay the costs of acquisition and construction of the Project and to pay the incidental costs and expenses related thereto as provided in the Trust Agreement. The certificates of participation mature in annual installments beginning on June 1, 2017 through June 1, 2039, in amounts ranging from $80,000 to $220,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on June 1 and December 1. The outstanding principal balance at June 30, 2016, was $3,570,000. The annual requirements to amortize the outstanding certificates of participation as of June 30, 2016, including interest, are as follows: Principal Interest 2017 80,000$ 147,460$ 2018 105,000 124,494 2019 105,000 121,344 2020 110,000 118,194 2021 115,000 113,794 2022-2026 650,000 492,019 2027-2031 810,000 335,219 2032-2036 950,000 194,750 2037-2039 645,000 42,250 Total 3,570,000$ 1,689,524$ Taxable Pension Funding Bonds Series 2008 48 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long-Term Debt (Continued) 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, 2016, was $2,020,000. The annual requirements to repay the outstanding indebtedness at June 30, including interest, are shown in the schedule below: Principal Interest 2017 275,000$ 80,968$ 2018 285,000 69,590 2019 300,000 57,337 2020 315,000 44,071 2021 845,000 18,590 Total 2,020,000$ 270,556$ 2003 Certificates of Participation 49 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016: Beginning at Ending Due within July 1, 2015 Defeased Addition Deletion June 30, 2016 one year Water Fund: Compensated Absences 472,354$ -$ 348,640$ 459,542$ 361,452$ 351,648$ 2006 Water Revenue Bonds 52,270,000 51,180,000 - 1,090,000 - - 2012 Water Refunding Bonds, Series A 7,355,000 - - 710,000 6,645,000 735,000 2015 Water System Refunding Bonds - - 47,740,000 - 47,740,000 1,150,000 Total Water Fund 60,097,354 51,180,000 48,088,640 2,259,542 54,746,452 2,236,648 Light Fund: Compensated Absences 534,939 - 326,933 321,797 540,075 324,887 2003 Certificates of participation, Series B and C 1,400,000 - - 620,000 780,000 650,000 2012 Electric Refunding Bonds, Series B 5,820,000 - - - 5,820,000 - Total Light Fund 7,754,939 - 326,933 941,797 7,140,075 974,887 Sewer/Wastewater Fund: Compensated Absences 78,509 - 41,403 63,785 56,127 56,127 2011 Sewer Installment, Series A 1,065,000 - - 165,000 900,000 170,000 2011 Sewer Installment, Series B 3,665,000 - - 200,000 3,465,000 205,000 Total Sewer/Wastewater Fund 4,808,509 - 41,403 428,785 4,421,127 431,127 Internal Service Funds: Compensated Absences 283,991 - 204,926 264,297 224,620 209,043 Total Internal Service 283,991 - 204,926 264,297 224,620 209,043 Total Business-Type Funds 72,944,793$ 51,180,000$ 48,661,902$ 3,894,421$ 66,532,274 3,851,705$ Unamortized bond premiums 3,836,045 70,368,319$ 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. 50 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 were payable from pledged revenues comprising primarily of installment payments received by the Authority from the City. Serial bonds were to mature in annual installments beginning on July 1, 2009 through July 1, 2017, in amounts ranging from $200,000 to $1,200,000. Interest ranged from 4.000% to 5.000% and was payable semi-annually on July 1 and January 1. Term bonds were to 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 bonds were fully refunded in the current year with the issuance of the 2015 Water System Revenue Refunding 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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. The annual requirements to amortize the outstanding bonds as of June 30, 2016, including interest are as follows: Principal Interest 2017 735,000$ 260,925$ 2018 755,000 238,575 2019 780,000 211,650 2020 810,000 182,975 2021 835,000 153,200 2022-2024 2,730,000 209,250 Totals 6,645,000$ 1,256,575$ 2012 Water Refunding Revenue Bonds, Series A 2015 Water System Refunding Revenue Bonds On July 23, 2015, the City issued $47,740,000 of 2015 Water System Refunding Revenue Bonds. The proceeds were used to refinance all of the City’s obligations in connection with the Azusa Public Financing Authority Parity Revenue Bonds (Water System Capital Improvements Program) Series 2006, and pay costs of issuance incurred in connection with the issuance of the 2015 Bonds. 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. The refunding resulted in a difference between the 51 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long-Term Debt (Continued) reacquisition price and the net carrying amount of the old debt of $625,426, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $3,440,000 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $14,486,840. Serial bonds mature in annual installments beginning on July 1, 2016 through July 1, 2039, in amounts ranging from $1,150,000 to $3,035,000. Interest ranges from 3.000% to 5.000% and is payable semi-annually on July 1 and January 1. The annual requirements to amortize the outstanding bonds as of June 30, 2016, including interest are as follows: Principal Interest 2017 1,150,000$ 1,949,338$ 2018 1,185,000 1,908,388 2019 1,245,000 1,853,563 2020 1,310,000 1,789,688 2021 1,375,000 1,722,563 2022-2026 8,010,000 7,479,688 2027-2031 9,960,000 5,523,538 2032-2036 12,055,000 3,426,669 2037-2040 11,450,000 938,600 Totals 47,740,000$ 26,592,035$ 2015 Water System Refunding Revenue Bonds 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, 2016, 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, 2016, was $780,000. 52 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long-Term Debt (Continued) The annual requirements to amortize the outstanding certificates of participation as of June 30, 2016, including interest, are as follows: Principal Interest 2017 650,000$ 25,344$ 2018 130,000 3,621 Totals 780,000$ 28,965$ Electric - Certificates of Participation, Series C 2012 Electric Refunding Revenue Bonds On May 23, 2012, the City issued $5,820,000 of 2012 Electric System Refunding Revenue Bonds, Series B. The proceeds were primarily used to advance refund all of the City’s obligations in connection with the Financing Authority for Resource Efficiency of California Certificates of Participation, Series B. The bonds are payable solely from the Electric net revenues, and the City is not obligated to pay them except from the applicable Electric net revenues. Serial bonds mature in annual installments beginning on July 1, 2017 through July 1, 2023, in amounts ranging from $650,000 to $930,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and January 1. Debt covenants require that the City maintain a reserve account equal $582,000. As of June 30, 2016, the reserve requirement was fully funded. The annual requirements to amortize the outstanding bonds as of June 30, 2016, including interest are as follows: Principal Interest 2017 -$ 175,569$ 2018 650,000 169,069 2019 795,000 150,644 2020 820,000 126,419 2021 845,000 99,331 2022-2024 2,710,000 124,091 Totals 5,820,000$ 845,123$ 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%. 53 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long-Term Debt (Continued) The Series B installments have annual principal payments beginning on August 1, 2012 through August 1, 2025 ranging from $120,000 to $505,000. Interest rates on the Series B installments are 3.600%. The annual requirements to amortize the outstanding installment agreements as of June 30, 2016, including interest are as follows: Principal Interest Principal Interest 2017 170,000$ 23,635$ 205,000$ 121,050$ 2018 175,000 18,633 210,000 113,580 2019 180,000 13,485 220,000 105,840 2020 185,000 8,193 230,000 97,740 2021 190,000 2,755 235,000 89,370 2022-2026 - - 2,365,000 218,790 Totals 900,000$ 66,701$ 3,465,000$ 746,370$ 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 and Safety Cost-Sharing Multiple-Employer Defined Benefit Pension Plans Plan Description The City of Azusa contributes to the California Public Employees Retirement System (PERS); to both a miscellaneous agent multiple-employer and safety cost-sharing multiple employer defined benefit pension plans. 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 its executive office: 400 P Street, Sacramento, California 95814. 54 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 for non-duty disability benefits after 10 statutorily reduced benefits. The Plans’ provisions and benefits in effect at June 30, 2016, are summarized as follows: Miscellaneous Classic Miscellaneous PEPRA Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 2.5% @ 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 2% - 2.5%, 50 yrs - 55+ yrs, respectively 1% - 2%, 50 yrs - 62 yrs, respectively Required employee contribution rates 7.00%6.75% Required employer contribution rates 16.076%16.076% Miscellaneous agent plans Safety Classic Safety Tier 2 Safety PEPRA Hire date Prior to October 15, 2012 Between October 15, 2012 through December 31, 2012 January 1, 2013 and after Benefit formula 3.0% @ 50 2.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of eligible compensation 3.00%2% 1% - 2.7%, 50 yrs - 57 yrs, respectively Required employee contribution rates 9.00%9.00%12.25% Required employer contribution rates 22.598%20.380%11.923% Safety cost-sharing plans Employees Covered At June 30, 2016, the following employees were covered by the benefit terms for the Miscellaneous Plans: Miscellaneous Plans Inactive employees or beneficiaries currently receiving benefits 260 Inactive employees entitled to but not yet receiving benefits 291 Active employees 231 782 55 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) Contribution Description 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 CalPERS’ annual actuarial valuation process. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2016, the contributions recognized as a reduction to the net pension liability was $2,461,163 and $2,475,434 for the miscellaneous and safety plans, respectively. 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, 2015 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Discount Rate 7.65% 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. All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. 56 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) Change of Assumptions GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65 percent used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. Discount Rate The discount rate used to measure the total pension liability was 7.65 percent. 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 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section. 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. 57 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) 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. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) 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 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 geometric 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 51.0%5.25%5.71% Global Fixed Income 19.0 0.99 2.43 Inflation Sensitive 6.0 0.45 3.36 Private Equity 10.0 6.83 6.95 Real Estate 10.0 4.50 5.13 Infrastructure and Forestland 2.0 4.50 5.09 Liquidity 2.0 (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 Pension Plan Fiduciary Net Position The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. Net Pension and Liability and Changes in Net Pension Liability As of June 30, 2016, the City reported net pension liabilities of each as follows: Miscellaneous agent 25,353,119$ Safety cost-sharing proportionate share 22,831,275 Total Net Pension Liability:48,184,394$ Net Pension Liability 58 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) For the Safety proportionate share of the net pension liability, it is measured as of June 30, 2015, 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, 2014 rolled forward to June 30, 2015 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 the Safety plans as of June 30, 2014 and June 30, 2015 is as follows: Safety Classic Safety Tier 2 PEPRA Safety Police Total Plans Proportion - June 30, 2014 0.42717% 0.00000% 0.00000% 0.42717% Proportion - June 30, 2015 0.55412% 0.00000% 0.00000% 0.55412% Change - Increase (Decrease) 0.12695% 0.00000% 0.00000% 0.12695% The following table shows the changes in net pension liability recognized over the measurement period for the miscellaneous agent multiple-employer plan. Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance at: 6/30/2014 (Valuation Date) (1)122,865,843$ 100,148,377$ 22,717,466$ Changes Recognized for the Measurement Period: Service Cost 2,302,623 - 2,302,623 Interest on the Total Pension Liability 8,989,759 - 8,989,759 Difference between Expected and Actual Experience (1,723,872) - (1,723,872) Difference between Expected and Actual Earnings - (5,333,154) 5,333,154 Changes of Assumptions (2,292,502) - (2,292,502) Plan to Plan Resource Management - (145) 145 Contribution from the Employer - 1,522,405 (1,522,405) Contributions from Employees - 1,032,337 (1,032,337) Net Investment Income (2)- 7,531,325 (7,531,325) Benefit Payments including Refunds of Employee Contributions (4,975,226) (4,975,226) - Administration expense - (112,413) 112,413 Net Changes During 2014-15 2,300,782 (334,871) 2,635,653 Balance at: 6/30/2015 (Measurement Date) (1)125,166,625$ 99,813,506$ 25,353,119$ Increase (Decrease) Note: Contributions from the Employer (City) has been adjusted from the GASB 68 report to reflect the actual contributions for the year ended June 30, 2015. (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. 59 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plans as of the measurement date, calculated using the discount rate of 7.65 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.65 percent) or 1 percentage-point higher (8.65 percent) than the current rate: Discount Rate - 1% 6.65% Current Rate - 1% 7.65% Discount Rate + 1% 8.65% Miscellaneous Plans 42,832,856$ 25,353,119$ 19,865,170$ Safety Plans 37,603,392 22,831,275 10,718,410 Recognition of Gains and Losses Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between projected and actual earnings 5 year straight-line amortization All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Plan for the 2014-15 measurement period is 3.8 years for safety cost-sharing and 3.1 for miscellaneous agent, which was obtained by dividing the total service years of 467,023 safety and 2,425 miscellaneous (the sum of remaining service lifetimes of the active employees) by 122,410 safety and 781 miscellaneous (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. 60 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2016, the City recognized pension expense of $912,437 and $2,256,614 for the miscellaneous and safety plans, respectively. As of June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Agent Multiple-Employer Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 2,381,498$ -$ Change in Assumptions - 1,552,985 Difference between Projected and Actual Experience - 1,167,784 Net Difference between Projected and Actual Earnings on Pension Plan Investments - 833,079 Total Miscellaneous 2,381,498$ 3,553,848$ Safety Cost-Sharing Multiple-Employer Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 2,408,176$ -$ Change in Assumptions - 1,253,696 Difference between Projected and Actual Experience - 272,580 Net Difference between Projected and Actual Earnings on Pension Plan Investments - 635,381 Adjustment due to Difference in Proportions 334,308 - Adjustment due to Difference in Proportions contribution - 315,936 Total Safety 2,742,484$ 2,477,593$ Total Plans Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 4,789,674$ -$ Change in Assumptions - 2,806,681 Difference between Projected and Actual Experience - 1,440,364 Net Difference between Projected and Actual Earnings on Pension Plan Investments - 1,468,460 Adjustment due to Difference in Proportions 334,308 - Adjustment due to Difference in Proportions contribution - 315,936 Total Safety 5,123,982$ 6,031,441$ 61 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) $4,789,674 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Measurement Period ended June 30: Deferred Outflows/(Inflows) of Resources 2016 (2,922,749)$ 2017 (2,931,940) 2018 (1,689,046) 2019 1,846,602 b. 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, 2016, the covered payroll for employees in the plan was $672,064. Total payroll for the City was $29,322,573. 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, 2016, the employer and the employees each contributed an amount equal to $50,405. Under this plan, normal retirement age is 60 years of age. Plan assets are primarily invested in money market funds. c. 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. PARS is a 401(a) tax-qualified single-employer benefit plan made up of California governmental agencies. 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: 62 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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. For the year ended June 30, 2016, the contributions recognized as a reduction to the net pension liability was $509,240. 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 participant. Actuarial Assumptions 63 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 4.07% 0.42% 0.41% Core Fixed Income Barclays Aggregate 38.64% 2.12% 1.99% Broad US Equities Russell 3000 43.90% 5.12% 3.81% Developed Foreign Equities MSCI EAFE 10.03% 5.85% 4.20% Emerging Market Equities MSCI Emerging Markets 3.36% 8.07% 4.79% Assumed Inflation - Mean 2.32% 2.30% Assumed Inflation - Standard Deviation 1.89% 1.89% Portfolio Real Mean Return 3.94% 3.45% Portfolio Nominal Mean Return 6.26% 5.83% Portfolio Standard Deviation 9.73% Long-Term Expected Rate of Return 7.00% 64 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 4.30% 0.42% 0.41% Core Fixed Income Barclays Aggregate 38.55% 2.12% 1.99% Broad US Equities Russell 3000 43.79% 5.12% 3.81% Developed Foreign Equities MSCI EAFE 10.01% 5.85% 4.20% Emerging Market Equities MSCI Emerging Markets 3.35% 8.07% 4.79% Assumed Inflation - Mean 2.32% 2.30% Assumed Inflation - Standard Deviation 1.89% 1.89% Portfolio Real Mean Return 3.94% 3.45% Portfolio Nominal Mean Return 6.25% 5.83% Portfolio Standard Deviation 9.71% 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 4.24% 0.42% 0.41% Core Fixed Income Barclays Aggregate 38.54% 2.12% 1.99% Broad US Equities Russell 3000 43.82% 5.12% 3.81% Developed Foreign Equities MSCI EAFE 10.01% 5.85% 4.20% Emerging Market Equities MSCI Emerging Markets 3.36% 8.07% 4.79% Assumed Inflation - Mean 2.32% 2.30% Assumed Inflation - Standard Deviation 1.89% 1.89% Portfolio Real Mean Return 3.94% 3.45% Portfolio Nominal Mean Return 6.26% 5.83% Portfolio Standard Deviation 9.71% Long-Term Expected Rate of Return 7.00% 65 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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 4.07% 0.42% 41.00% Core Fixed Income Barclays Aggregate 38.64% 2.12% 1.99% Broad US Equities Russell 3000 43.90% 5.12% 3.81% Developed Foreign Equities MSCI EAFE 10.03% 5.85% 4.20% Emerging Market Equities MSCI Emerging Markets 3.36% 8.07% 4.79% Assumed Inflation - Mean 2.32% 2.30% Assumed Inflation - Standard Deviation 1.89% 1.89% Portfolio Real Mean Return 3.94% 3.45% Portfolio Nominal Mean Return 6.26% 5.83% Portfolio Standard Deviation 9.73% 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, 2015 485,467$ 290,289$ 195,178$ Changes for the year: Service Cost 15,670 - 15,670 Interest on the Total Pension Liability 37,853 - 37,853 Effect of Economic/Demographic Gains or Losses 38,614 - 38,614 Effect of Assumptions Changes or Inputs 9,089 - 9,089 Benefit Payments (16,451) (16,451) - Employer Contributions - 24,410 (24,410) Member Contributions - 26,100 (26,100) Net Investment Income - (863) 863 Administrative Expenses - (5,041) 5,041 Balance as of June 30, 2016 570,242$ 318,444$ 251,798$ Increase (Decrease) 66 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2015 3,124,728$ 1,907,880$ 1,216,848$ Changes for the year: Service Cost 88,388 - 88,388 Interest on the Total Pension Liability 216,255 - 216,255 Effect of Economic/Demographic Gains or Losses (221,832) - (221,832) Effect of Assumptions Changes or Inputs 131,142 - 131,142 Benefit Payments (67,291) (67,291) - Employer Contributions - 172,625 (172,625) Member Contributions - 43,558 (43,558) Net Investment Income - (6,961) 6,961 Administrative Expenses - (11,509) 11,509 Balance as of June 30, 2016 3,271,390$ 2,038,302$ 1,233,088$ Increase (Decrease) Executive Bargaining Group Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance as of June 30, 2015 2,630,889$ 995,366$ 1,635,523$ Changes for the year: Service Cost - - - Interest on the Total Pension Liability 201,357 - 201,357 Effect of Economic/Demographic Gains or Losses 201,732 - 201,732 Effect of Assumptions Changes or Inputs 106,795 - 106,795 Benefit Payments (127,936) (127,936) - Employer Contributions - 97,284 (97,284) Net Investment Income - (5,857) 5,857 Administrative Expenses - (8,348) 8,348 Balance as of June 30, 2016 3,012,837$ 950,509$ 2,062,328$ 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, 2015 2,996,414$ 1,674,744$ 1,321,670$ Changes for the year: Service Cost 100,474 - 100,474 Interest on the Total Pension Liability 210,235 - 210,235 Effect of Economic/Demographic Gains or Losses (61,026) - (61,026) Effect of Assumptions Changes or Inputs 28,545 - 28,545 Benefit Payments (124,197) (124,197) - Employer Contributions - 214,921 (214,921) Member Contributions - 79,015 (79,015) Net Investment Income - (4,679) 4,679 Administrative Expenses - (10,938) 10,938 Balance as of June 30, 2016 3,150,445$ 1,828,866$ 1,321,579$ Increase (Decrease) 67 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2015 9,237,498$ 4,868,279$ 4,369,219$ Changes for the year: Service Cost 204,532 - 204,532 Interest on the Total Pension Liability 665,700 - 665,700 Effect of Economic/Demographic Gains or Losses (42,512) - (42,512) Effect of Assumptions Changes or Inputs 275,571 - 275,571 Benefit Payments (321,069) (321,069) - Employer Contributions - 509,240 (509,240) Member Contributions - 148,673 (148,673) Net Investment Income - (18,360) 18,360 Administrative Expenses - (35,836) 35,836 Balance as of June 30, 2016 10,019,720$ 5,150,927$ 4,868,793$ 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 327,415$ 251,798$ 189,022$ AMMA Bargaining Group 1,661,990 1,233,088 872,274 Executive/Contract Bargaining Group 2,450,278 2,062,328 1,741,068 IBEW Employees 1,753,649 1,321,579 959,804 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period, July 1, 2015, the net pension liability was $4,369,219. For the measurement period ending June 30, 2016, the City incurred a pension expense of $680,629 for all the PARS Plan. As of the measurement date, June 30, 2016, the net pension liability is $4,868,793. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the City. 68 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Pension Plans (Continued) As of June 30, 2016, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: PARS Plans Deferred Outflows of Resources Deferred Inflows of Resources Change in Assumptions 185,872$ 232,866$ Difference between Projected and Actual Experience 120,550 - Net Difference between Projected and Actual Earnings on Pension Plan Investments 416,880 - Total Safety 723,302$ 232,866$ 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: Measurement Period ended June 30: Deferred Outflows/(Inflows) of Resources 2017 239,581$ 2018 102,458 2019 102,461 2020 61,897 2021 (9,466) Thereafter (6,495) 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 $662,395 was made during the 2015-2016 fiscal year and was not included in the June 30, 2016, actuarial study. The purpose of the contribution was to pay current year premiums for retirees. 69 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Post-Employment Benefits (Continued) As a result, the City calculated and recorded a Net OPEB Liability, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC)3,339,000$ Interest on Net OPEB Obligation 121,572 Adjustment to ARC (333,284) Annual OPEB Cost 3,127,288 Contributions made (662,395) (Decrease) increase in Net OPEB obligation 2,464,893 Net OPEB obligation (asset) June 30, 2015 12,287,102 Net OPEB obligation (asset) June 30, 2016 14,751,995$ The contribution rate of 19.84% is based on the ARC of $3,339,000, 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 2015-2016, the City’s annual OPEB cost (expense) of $3,127,288 was less than the ARC. The last three year trend information on the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented below: Fiscal Year End Annual OPEB Cost Actual Contribution (Net of Adjustments) Percentage of Annual OPEB Cost Contributed Net OPEB Obligation (Asset) 6/30/2014 2,596,922$ 585,919$ 23% 10,383,609$ 6/30/2015 2,466,948 563,455 23% 12,287,102 6/30/2016 3,127,288 662,395 21% 14,571,995 70 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, was twenty-five years. The number of active participants is 237. 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 $5,000,000. 71 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 8: Insurance (Continued) For the past three years, no settlements or claims payments have exceeded the amount of the applicable insurance coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: Claims Incurred Beginning and Changes Less Claim Ending Balance in Estimates Payments Balance 2014-2015 2,356,493$ (419,136)$ (507,084)$ 1,430,273$ 2015-2016 1,430,273 2,890,352 (2,003,484) 2,317,141 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, 2016, was as follows: Due To/From Other Funds Grants and Nonmajor Seizure Governmental Fund Funds Total Due from other funds: Water 1,716,020$ 103,228$ 1,819,248$ 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 4,023,814$ 156,000$ 4,179,814$ Nonmajor Governmental Funds - 750,000 750,000 Total 4,023,814$ 906,000$ 4,929,814$ Advances To Other Funds: The Light Fund advanced $156,000 to the General Fund and $750,000 to the Capital Projects Fund for various project expenditures. 72 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 9: Interfund Receivables, Payables and Transfers (Continued) Interfund Transfers Nonmajor General Governmental Internal Transfer Out: Fund Funds Service Funds Total General Fund -$ 4,908,610$ 113,825$ 5,022,435$ Nonmajor Governmental Funds 293,905 - - 293,905 Water Fund - 336,406 15,780 352,186 Light Fund - 136,762 - 136,762 Nonmajor Proprietary Funds 734,600 - 132,335 866,935 Internal Service Funds 385,010 43,780 - 428,790 Total 1,413,515$ 5,425,558$ 261,940$ 7,101,013$ 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 Fund Balance as previously reported, June 30, 2015 19,547,182$ DOF approved recalculation of accrued interest on Note Payable to Successor Agency 372,692 Correction to eliminate accrued interest on governmental bonds 104,163 Fund Balance, as restated, July 1, 2015 20,024,037$ Enterprise Funds Water Light Sewer/ Wastewater Net position as previously reported, June 30, 2015 52,645,976$ 43,220,224$ 9,363,503$ Reclass of prior period cash balances (131,278) (70,688) 201,966 Correction of prior period interest expense and accrual - - (67,844) Net position, as restated, July 1, 2015 52,514,698$ 43,149,536$ 9,497,625$ Government-wide Governmental Activities Business-type Activities Net position as previously reported, June 30, 2015 (7,636,124)$ 102,795,716$ DOF approved recalculation of accrued interest on Note Payable to Successor Agency 372,692 - Correction to eliminate accrued interest on governmental bonds 104,163 - Restatement to capitalize prior period costs 432,630 - Correction of prior period interest expense and accrual - (67,844) Restatement of Net Position 909,485 (67,844) Net position, as restated, July 1, 2015 (6,726,639)$ 102,727,872$ 73 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 11: Grants and Seizure Fund The Grants and Seizure special revenue fund include the following items in its fund balance: Grants & Seizures (8,940)$ 1% DIVA/PEG Cable Fees 177,603 Jack Williams Memorial 600 Grants & Seizures - Police 17 2015 JAG Grant (17,289) Asset Seizure Federal - Dept. of Justice 158,006 Asset Seizure County 25,268 Office of Traffice Safety 2,762 Asset Seizure Federal - Dept. of Treasury 248 Inmate Welfare Fund 4,603 OCTDETF (5,274) OTS-Sel Traffic Enf Prg (!5/16)(11,048) AQMD Tree Planting 3,157 Sr Cntr Cyn City Grant 4,277 Senior Restricted Donations 98 Public Library Grant 237,150 Library Restricted Donations 64,160 Gates Foundation 497 Broadband Grant (Lib)7,615 Family Place Grant 1,943 Book Clubs 467 Youth Programs 689 Summer Reading 3,481 Special Programs 75 Workforce Invest Act 15-16 (6,680) LSTA-Neighborhood Con FY 15/16 (2,238) General Plan Surcharge 663,795 Metro TOD Planning Grant (83,875) AB29X Meters 86,607 Oil Block Grant 6,717 Beverage Container Recycling 44,332 Technology Grant 13,698 Safe Routes to Schools Grant (13,572) TDA Grant 1 CIP-Recreation Grants (269,879) Rehab of Zacatecas Park 516 CIP-AZ Intermodal Transit (3,524,757) CIP Street Maintenance (15,280) Total (2,450,450)$ 74 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, is as follows: Assets: Current assets 3,698,727$ Restricted assets 1,456,489 Capital assets 10,433,586 Total assets 15,588,802 Deferred Outflows of Resources: Deferred pension related items 82,577 Total Deferred Outflows of Resources 82,577 Liabilities: Current liabilities 559,357 Noncurrent liabilities 5,122,877 Total liabilities 5,682,234 Deferred Inflows of Resources: Deferred pension related items 173,158 Total Deferred Inflows of Resources 173,158 Net position: Net Investment in capital assets 7,522,719 Unrestricted 2,293,268 Total net position 9,815,987$ Condensed Statement of Net Position Sewer charges 2,684,684$ Depreciation expense (488,339) Other operating expenses (1,437,262) Operating income 759,083 Nonoperating revenues (expenses): Investment earnings 25,070 Interest expense (151,839) Special franchise fees (54,244) Transfers out (119,000) Change in net Position 459,070 Beginning net position, as originally reported 9,222,795 Restatement 134,122 Ending net position 9,815,987$ Condensed Statement of Revenues, Expenses and Changes in Net Position 75 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 12: Segments of Enterprise Activities (Continued) Net cash provided by (used in): Operating activities 1,166,395$ Noncapital financing activities (119,000) Capital and related financing activities (665,295) Investing activities 20,994 Net decrease in cash 403,094 Beginning cash and cash equivalents 4,426,154 Ending cash and cash equivalents 4,829,248$ 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, 2016, 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 $24,440,000), 0.7% of SCPPA’s $80,165,000 investment (at cost) in the Mead – Phoenix Transmission Project (with related SCPPA indebtedness of $50,656,000), 1.8% of SCPPA’s $200,987,000 investment (at cost) in the Mead - Adelanto Transmission Project (with related SCPPA indebtedness of $112,098,000), 14.7% of SCPPA’s $257,963,000 investment (at cost) in the San Juan Generating Station (with related indebtedness of $0), and 4.2% of SCPPA’s $21,000 investment (at cost) in the Hoover Uprating Green Power Project (with related SCPPA indebtedness of $2,141,000). Note 14: Rate Stabilization Fund The City of Azusa has provided for a rate stabilization fund in the amount of $10,211,624 (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. 76 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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. 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. 77 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and Investments pooled with the City 4,881,822$ Restricted cash and Investments pooled with the City 354,314 Total Cash and Investments 5,236,136$ b. Capital Assets An analysis of capital assets as of June 30, 2016, follows: Adjusted Additions Deletions Nondepreciable Assets: Land 410,420$ -$ -$ 410,420$ Depreciable Assets: Land Improvements 1,427,803 - - 1,427,803 Building and Structures 468,042 - - 468,042 Infrastructure 718,430 - - 718,430 Total Capital Assets being depreciated 2,614,275 - - 2,614,275 Less Accumulated Depreciation Land Improvements 804,936 58,400 - 863,336 Building and Structures 210,619 46,803 - 257,422 Infrastructure 109,646 23,948 - 133,594 Total Accumulated Depreciation 1,125,201 129,151 - 1,254,352 Total Capital Assets being depreciated, net 1,489,074 (129,151) - 1,359,923 Capital Assets 1,899,494$ (129,151)$ -$ 1,770,343$ Balance July 1, 2015 Balance June 30, 2016 78 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 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, 2016, follows: Balance July 1, 2015 Defeased Additions Repayments Balance June 30, 2016 Due Within One Year Fiduciary Funds: 2005 TABS, Series A 9,919,728$ (9,919,728)$ -$ * -$ -$ -$ 2007 TABs, Series A 12,920,000 (7,935,000) - (505,000) 4,480,000 535,000 2007 TABs, Series B 4,150,000 - - (110,000) 4,040,000 110,000 2008 TABs, Series B 10,565,000 (10,410,000) - (155,000) - - 2014 Refunding TAB 10,470,000 - - (755,000) 9,715,000 690,000 2015 Refunding TAB, Series A - - 14,315,000 - 14,315,000 - 2015 Refunding TAB, Series B - - 16,215,000 - 16,215,000 510,000 Total Fiduciary Funds $ 48,024,728 $ (28,264,728) $ 30,530,000 $ (1,525,000) $ 48,765,000 $ 1,845,000 Unamortized Premiums (Discounts) 222,334 Total Long-term Debt 48,987,334$ 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 $73,755,647, 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 $3,843,267, and the debt service obligation on the bonds was $4,006,805. 79 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) Tax Allocation Bonds Payable 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 consisted of $7,765,000 Current Interest Bonds which were 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 were secured by tax increment revenues. Debt service payments on the bonds were payable from pledged tax increment revenues. The bonds were fully refunded in the current year with the issuance of the 2015 A & B Subordinate Tax Allocation Refunding Bonds. 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 bonds were partially refunded in the current year with the issuance of the 2015 A & B Subordinate Tax Allocation Refunding Bonds. The outstanding principal balance at June 30, 2016, was $4,480,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2016, including interest are as follows: Principal Interest 2017 535,000$ 737,106$ 2018 565,000 705,399 2019 605,000 671,114 2020 635,000 634,224 2021 670,000 595,400 2022-2023 1,470,000 1,064,660 Totals 4,480,000$ 4,407,903$ Bonds, Series A 2007 Tax Allocation 80 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 2007 Tax Allocation Refunding Bonds, Series B The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area Tax Allocation Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds. Current Interest Bonds are subject to annual sinking fund installment payments ranging from $80,000 to $140,000 due beginning August 1, 2008 through August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum. Term Bonds are due beginning August 1, 2022 through August 1, 2036, with installment payments ranging from $150,000 to $305,000, bearing interest rates ranging from 5.25% to 5.30% per annum. Debt service payments on the bonds are payable from pledged tax increment revenues. A portion of the bonds were refunded during the fiscal year. The outstanding principal balance at June 30, 2016, was $4,040,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2016, including interest are as follows: Principal Interest 2017 110,000$ 207,439$ 2018 120,000 202,075 2019 125,000 196,286 2020 130,000 190,198 2021 135,000 183,703 2022-2026 785,000 804,644 2027-2031 1,020,000 568,233 2032-2036 1,310,000 261,555 2037-2039 305,000 8,083 Totals 4,040,000$ 2,622,216$ Bonds, Series B 2007 Tax Allocation 2008 Housing Tax Allocation Bonds, Series B The Azusa Redevelopment Agency issued $11,580,000 of Housing Tax Allocation Bonds, Series B, dated November 25, 2008. Proceeds of the bonds were to provide funds to finance low and moderate income housing within or of benefit to the project area, satisfy the reserve requirement for the bonds, and pay costs incurred in connection with the issuance. The bonds consisted 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 had interest rates ranging from 3.5% through 6.6%. The term bonds carried interest rates of 6.75% and 7.0%. Debt service payments on the bonds were payable from pledged tax increment revenues. The bonds were fully refunded in the current year with the issuance of the 2015 A & B Subordinate Tax Allocation Refunding Bonds. 81 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) 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 economic gain on refunding was $2,288,197. The difference in cash flow was $2,075,000.The outstanding principal balance at June 30, 2016, was $9,715,000. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2016, including interest are as follows: Principal Interest 2017 690,000$ 410,194$ 2018 705,000 385,744 2019 730,000 353,394 2020 780,000 315,644 2021 820,000 275,644 2022-2026 4,030,000 725,469 2027-2031 1,345,000 237,275 2032-2035 615,000 78,028 Totals 9,715,000$ 2,781,392$ Bonds, Series A 2014 Tax Allocation Refunding 2015 Subordinate Tax Allocation Refunding Bonds, Series A & B The Successor Agency to the Redevelopment Agency of the City of Azusa issued $30,530,000 of Subordinate Tax Allocation Refunding Bonds, Series A & B, dated September 8, 2015. 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 refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $3,080,678, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the debt. The City completed the refunding to reduce its total debt service payments by $2,755,111 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $4,413,928. The bonds are due in annual installments ranging from $315,000 to $2,635,000 maturing on August 1, 2016 through August 1, 2036. The bonds carry interest rates of 1.00% and 4.50%. 82 CITY OF AZUSA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency (Continued) The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2016, including interest are as follows: Principal Interest Principal Interest 2017 -$ 504,213$ 510,000$ 615,544$ 2018 - 504,213 315,000 610,631 2019 - 504,213 325,000 605,019 2020 - 504,213 330,000 598,056 2021 - 504,213 330,000 589,806 2022-2026 - 2,521,063 5,075,000 2,658,900 2027-2031 2,535,000 2,397,481 9,230,000 961,159 2032-2036 11,205,000 1,082,881 100,000 6,750 2037 575,000 10,781 - - Totals $14,315,000 $8,533,271 $16,215,000 $6,645,865 2015 Subordinate Tax Allocation Refunding Bonds, Series A 2015 Subordinate Tax Allocation Refunding Bonds, Series B 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. Due to City of Azusa The Successor Agency owes $12,366,031 to the City of Azusa for properties purchased, and have been approved by the State Controller’s Office. There is $9,750,019 and $2,616,012 owed to the City of Azusa’s General Fund and Water Fund, respectively. f. Restatement of Net Position The Successor Agency net position has been restated by ($115,269) as a result of the following events:  The DOF approved a recalculation of accrued interest on a note payable to the Successor Agency from the City ($372,692).  The Successor Agency upgrades a capital asset, and found the asset had never been initially capitalized. This asset had a net book value of $257,423 as of June 30, 2016. 83 THIS PAGE INTENTIONALLY LEFT BLANK 84 REQUIRED SUPPLEMENTARY INFORMATION 85 CITY OF AZUSA AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2016 2015 Total Pension Liability Service cost 2,302,623$ 2,375,239$ Interest on total pension liability 8,989,759 8,658,209 Differences between expected and actual experience (1,723,872) - Changes in assumptions (2,292,502) - Benefit payments, including refunds of employee contributions (4,975,226) (4,845,540) Net change in total pension liability 2,300,782 6,187,908 Total pension liability - beginning 122,865,843 116,677,935 Total pension liability - ending (a)125,166,625$ 122,865,843$ Plan Fiduciary Net Position Contributions - employer 2,461,163$ 2,434,002$ Contributions - employee 93,579 1,029,164 Difference in projected and actual earnings (5,333,154) - Plan to plan resource movement (145) - Net investment income 7,531,325 14,908,401 Benefit payments (4,975,226) (4,845,540) Administrative expense (112,413) - Net change in plan fiduciary net position (334,871) 13,526,027 Plan fiduciary net position - beginning 100,148,377 86,622,350 Plan fiduciary net position - ending (b) 99,813,506$ 100,148,377$ Net pension liability - ending (a)-(b)25,353,119$ 22,717,466$ Plan fiduciary net position as a percentage of the total pension liability 79.74%81.51% Covered-employee payroll 13,633,510$ 14,720,772$ Net pension liability as a percentage of covered-employee payroll 185.96%154.32% Notes to Schedule: (1) Fiscal Year 2015 was the first year of implementation, therefore only two years are shown. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: The discount rate was changed from 7.5 percent (net of administration expense) to 7.65 percent. 86 CITY OF AZUSA AGENT MULTIPLE-EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2016 2015 MISCELLANEOUS CLASSIC: Actuarially Determined Contribution 2,203,894$ 2,352,288$ Contribution in Relation to the Actuarially Determined Contributions (2,203,894) (2,352,288) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll 13,035,458$ 13,633,510$ Contributions as a Percentage of Covered-Employee Payroll 16.91%17.25% MISCELLANEOUS PEPRA: Actuarially Determined Contribution 177,604$ 108,875$ Contribution in Relation to the Actuarially Determined Contributions (177,604) (108,875) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll 1,077,766$ 795,524$ Contributions as a Percentage of Covered-Employee Payroll 16.48%13.69% Note to Schedule: Valuation Date:June 30, 2013 Methods and assumptions used to determine contribution rates: Single and Agent Employers Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality RP-2000 Heath Annuitant Mortality Table Entry age normal (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 two years are shown. Level Percent of Payroll 29 Years as of the Valuation Date 15 Year Smoothed Market 2.75% 3.00% 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) 2016 2015 SAFETY CLASSIC: Proportion of the Net Pension Liability 0.33264%0.31257% Proportionate Share of the Net Pension Liability 22,832,315$ 19,449,591$ Covered-Employee Payroll 6,142,486$ 6,343,000$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll 371.71%306.63% Plan Proportionate Share of Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82%78.40% SAFETY TIER 2: Proportion of the Net Pension Liability 0.00000% Proportionate Share of the Net Pension Liability (850)$ Covered-Employee Payroll 366,493$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll -0.23% Plan Proportionate Share of Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% PEPRA SAFETY POLICE PLAN: Proportion of the Net Pension Liability 0.00000% Proportionate Share of the Net Pension Liability (190)$ Covered-Employee Payroll 140,752$ Proportionate Share of the Net Pension Liability as Percentage of Covered-Employee Payroll -0.13% Plan Proportionate Share of Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% Notes to Schedule: Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: The discount rate was changed from 7.5 percent (net of administration expense) to 7.65 percent. (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 two years are 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) 2016 2015 SAFETY CLASSIC: Actuarially Determined Contribution 2,302,789$ 2,362,398$ Contribution in Relation to the Actuarially Determined Contributions (2,302,789) (2,362,398) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll 5,354,109$ 6,142,486$ Contributions as a Percentage of Covered-Employee Payroll 43.01%38.46% SAFETY TIER 2: Actuarially Determined Contribution 72,278$ 95,794$ Contribution in Relation to the Actuarially Determined Contributions (72,278) (95,794) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll 327,064$ 366,493$ Contributions as a Percentage of Covered-Employee Payroll 22.10%26.14% PEPRA SAFETY POLICE PLAN: Actuarially Determined Contribution 33,109$ 17,242$ Contribution in Relation to the Actuarially Determined Contributions (33,109) (17,242) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll 259,523$ 140,752$ Contributions as a Percentage of Covered-Employee Payroll 12.76%12.25% Note to Schedule: Valuation Date:June 30, 2013 Methods and assumptions used to determine contribution rates: Single and Agent Employers Entry age normal Amortization method Level percentage of payroll, closed 20 years Assets valuation method Market Value Inflation 2.75% Salary Increases Investment rate of return Retirement age 50 and 57 years Mortality RP-2000 Heath Annuitant Mortality Table 3.30% to 14.20% depending on age, service, and type of employment 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation (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 two years are shown. 89 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA SEIU BARGAINING RETIREMENT ENHANCEMENT PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD 2016 2015 TOTAL PENSION LIABILITY Service Cost 15,670$ 18,174$ Interest on Total Pension Liability 37,853 32,199 Effect of Economic/Demographics Gains or Losses 38,614 - Effect of Assumptions Changes or Inputs 9,089 - Benefit Payments (16,451) (13,203) Net Change in Total Pension Liability 84,775$ 37,170$ Total Pension Liability - Beginning 485,467 448,297 Total Pension Liability - Ending (a)570,242$ 485,467$ PLAN FIDUCIARY NET POSITION Benefit Payments (16,451)$ (13,203)$ Employer Contributions 24,410 12,890 Member Contributions 26,100 25,312 Net Investment Income (863) 7,232 Administrative Expenses (5,041) (1,510) Net Change in Fiduciary Net Position 28,155$ 30,721$ Plan Fiduciary Net Position - Beginning 290,289 259,568 Plan Fiduciary Net Position - Ending (b) 318,444$ 290,289$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 251,798$ 195,178$ 55.84%59.80% Covered-Employee Payroll 620,510$ 600,978$ 40.58%32.48% (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 (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 two years are shown. 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). 90 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA AMMA BARGAINING RETIREMENT ENHANCEMENT PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD 2016 2016 TOTAL PENSION LIABILITY Service Cost 88,388$ 102,116$ Interest on Total Pension Liability 216,255 207,196 Effect of Economic/Demographics Gains or Losses (221,832) - Effect of Assumptions Changes or Inputs 131,142 - Benefit Payments (67,291) (83,368) Net Change in Total Pension Liability 146,662$ 225,944$ Total Pension Liability - Beginning 3,124,728 2,898,784 Total Pension Liability - Ending (a)3,271,390$ 3,124,728$ PLAN FIDUCIARY NET POSITION Benefit Payments (67,291)$ (83,368)$ Employer Contributions 172,625 138,866 Member Contributions 43,558 46,205 Net Investment Income (6,961) 47,672 Administrative Expenses (11,509) (8,240) Net Change in Fiduciary Net Position 130,422$ 141,135$ Plan Fiduciary Net Position - Beginning 1,907,880 1,766,745 Plan Fiduciary Net Position - Ending (b) 2,038,302$ 1,907,880$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 1,233,088$ 1,216,848$ 62.31%61.06% Covered-Employee Payroll 2,128,243$ 2,061,252$ 57.94%59.03% (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 (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 two years are shown. 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). 91 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA EXECUTIVE/CONTRACT BARGAINING 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 2016 2015 TOTAL PENSION LIABILITY Interest on Total Pension Liability 201,357$ 176,286$ Effect of Economic/Demographics Gains or Losses 201,732 - Effect of Assumptions Changes or Inputs 106,795 - Benefit Payments (127,936) (125,424) Net Change in Total Pension Liability 381,948$ 50,862$ Total Pension Liability - Beginning 2,630,889 2,580,027 Total Pension Liability - Ending (a)3,012,837$ 2,630,889$ PLAN FIDUCIARY NET POSITION Benefit Payments (127,936)$ (125,424)$ Employer Contributions 97,284 78,751 Net Investment Income (5,857) 26,218 Administrative Expenses (8,348) (5,569) Net Change in Fiduciary Net Position (44,857)$ (26,024)$ Plan Fiduciary Net Position - Beginning 995,366 1,021,390 Plan Fiduciary Net Position - Ending (b) 950,509$ 995,366$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 2,062,328$ 1,635,523$ 31.55%37.83% Covered-Employee Payroll 990,274$ 959,103$ 208.26%170.53% (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 (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 two years are shown. 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). 92 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA IBEW BARGAINING 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 2016 2015 TOTAL PENSION LIABILITY Service Cost 100,474$ 107,529$ Interest on Total Pension Liability 210,235 199,129 Effect of Economic/Demographics Gains or Losses (61,026) - Effect of Assumptions Changes or Inputs 28,545 - Benefit Payments (124,197) (93,243) Net Change in Total Pension Liability 154,031$ 213,415$ Total Pension Liability - Beginning 2,996,414 2,782,999 Total Pension Liability - Ending (a)3,150,445$ 2,996,414$ PLAN FIDUCIARY NET POSITION Benefit Payments (124,197)$ (93,243)$ Employer Contributions 214,921 153,146 Member Contributions 79,015 82,044 Net Investment Income (4,679) 41,194 Administrative Expenses (10,938) (7,492) Net Change in Fiduciary Net Position 154,122$ 175,649$ Plan Fiduciary Net Position - Beginning 1,674,744 1,499,095 Plan Fiduciary Net Position - Ending (b) 1,828,866$ 1,674,744$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 1,321,579$ 1,321,670$ 58.05%55.89% Covered-Employee Payroll 4,060,559$ 3,932,745$ 32.55%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 (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 two years are shown. 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). 93 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA AMMA BARGAINING RETIREMENT ENHANCEMENT PLAN SCHEDULE OF CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) SEIU Bargaining Group 2016 2015 Actuarially Determined Contribution 24,410$ 12,890$ Contribution in Relation to the Actuarially Determined Contribution (24,410) (12,890) Contribution Deficiency (Excess)-$ -$ Actual Contributions as a Percentage of Actuarial Determined Contributions 100.00%100.00% Covered-Employee Payroll (3) (4)544,976$ 620,510$ Contributions as a Percentage of Covered-Employee Payroll (3)4.48%2.08% AMMA Bargaining Group Actuarially Determined Contribution 172,625$ 138,866$ Contribution in Relation to the Actuarially Determined Contribution (172,625) (138,866) Contribution Deficiency (Excess)-$ -$ Actual Contributions as a Percentage of Actuarial Determined Contributions 100.00%100.00% Covered-Employee Payroll (3) (4)1,880,944$ 2,128,243$ Contributions as a Percentage of Covered-Employee Payroll (3)9.18%6.52% Executive/ Contract Bargaining Group Actuarially Determined Contribution 97,284$ 115,922$ Contribution in Relation to the Actuarially Determined Contribution (97,284) (115,922) Contribution Deficiency (Excess)-$ -$ Actual Contributions as a Percentage of Actuarial Determined Contributions 100.00%100.00% Covered-Employee Payroll (3) (4)672,625$ 990,274$ Contributions as a Percentage of Covered-Employee Payroll (3)14.46%11.71% IBEW Employees Actuarially Determined Contribution 214,921$ 153,146$ Contribution in Relation to the Actuarially Determined Contribution (214,921) (153,146) Contribution Deficiency (Excess)-$ -$ Actual Contributions as a Percentage of Actuarial Determined Contributions 100.00%100.00% Covered-Employee Payroll (3) (4)4,117,972$ 4,060,559$ Contributions as a Percentage of Covered-Employee Payroll (3)5.22%3.77% Note to Schedule: Valuation Date:June 30, 2014 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level dollar, closed Remaining amortization period 25 years Assets valuation method None Inflation 2.75% Salary Increases Not applicable Investment rate of return Retirement age Mortality 7.00% 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 (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 two years are shown. 94 CITY OF AZUSA REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) AZUSA AMMA BARGAINING RETIREMENT ENHANCEMENT PLAN SCHEDULE OF INVESTMENT RETURNS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Annual Money-Weighted Rate of Return, Net of Investment Expense 2016 2015 SEIU Bargaining Group -0.28% 2.66% AMMA Bargaining Group -0.35% 2.64% Executive/Contract Bargaining Group -0.60% 2.60% IBEW Employees -0.27% 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, therefore only two years are shown. 95 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 20,024,037$ 20,024,037$ 20,024,037$ -$ Resources (Inflows): Taxes 28,257,445 28,332,445 29,983,620 1,651,175 Assessments 1,824,745 1,771,595 1,875,271 103,676 Licenses and permits 1,181,480 942,480 1,096,325 153,845 Intergovernmental 257,000 369,420 496,497 127,077 Charges for services 2,325,805 2,361,805 2,435,877 74,072 Use of money and property 90,000 90,000 361,500 271,500 Fines and forfeitures 1,205,200 1,160,200 1,328,383 168,183 Contributions 17,000 17,000 19,703 2,703 Miscellaneous 120,000 550,625 1,641,391 1,090,766 Transfers in 1,413,515 1,413,515 1,413,515 - Capital lease proceeds - 2,000,000 - (2,000,000) Amounts Available for Appropriations 56,716,227 59,033,122 60,676,119 1,642,997 Charges to Appropriations (Outflow): General government City Council 127,250 127,250 131,156 (3,906) City Attorney 250,000 250,000 267,524 (17,524) Administration 427,120 462,540 467,839 (5,299) Promotion / Membership 197,075 197,075 192,892 4,183 City Clerk 448,065 433,652 492,903 (59,251) Library Services - General 1,007,140 1,009,640 1,021,305 (11,665) Library Services - Youth 31,430 31,430 32,391 (961) Finance - Accounting 851,460 871,160 996,029 (124,869) Cash Management 202,440 202,440 201,940 500 Purchasing 222,945 224,695 231,182 (6,487) Printing Services 7,800 7,800 8,826 (1,026) Human Resources 339,115 437,595 429,200 8,395 City-wide 2,770,930 2,709,010 2,504,989 204,021 Admin Services / Business Lic 1,650 1,650 - 1,650 Business License 297,290 249,290 270,114 (20,824) Public safety Police 16,090,890 16,138,910 16,588,096 (449,186) Emergency Services 7,100 7,100 3,289 3,811 Police Department Contracts 782,845 802,845 746,267 56,578 Area D 100,000 76,850 49,100 27,750 Pension Safety 5,000 5,000 2,000 3,000 INF 358,315 318,315 343,833 (25,518) Community development Planning 398,965 373,465 402,103 (28,638) Building Regulation 670,520 670,520 680,969 (10,449) Code Enforcement 435,605 555,605 591,559 (35,954) Parks and recreation Recreation 1,378,250 1,443,850 1,549,366 (105,516) Parks Maintenance 1,615,295 1,615,295 1,726,117 (110,822) Senior Programs 158,810 158,810 157,267 1,543 Women's Club 21,170 21,170 20,362 808 Public works Engineering Services 51,220 126,220 124,714 1,506 Graffiti Removal 17,200 17,200 58,030 (40,830) Facilities Maintenance 495,815 505,815 512,984 (7,169) Capital outlay - 500,000 496,083 3,917 Debt service: Principal retirement 965,000 965,000 965,000 - Interest and fiscal charges 223,685 223,685 235,076 (11,391) Transfers out 5,483,980 5,704,880 5,022,435 682,445 Total Charges to Appropriations 36,441,375 37,445,762 37,522,940 (77,178) Budgetary Fund Balance, June 30 20,274,852$ 21,587,360$ 23,153,179$ 1,565,819$ 96 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE GRANTS AND SEIZURE YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 995,692$ 995,692$ 995,692$ -$ Resources (Inflows): Taxes 34,000 40,000 48,165 8,165 Intergovernmental 5,803,505 6,466,556 1,093,295 (5,373,261) Charges for services - - 54,538 54,538 Use of money and property 100 100 7,852 7,752 Contributions 2,000 2,000 1,042 (958) Miscellaneous 7,000 7,000 94,213 87,213 Transfers in - 40,000 - (40,000) Amounts Available for Appropriations 6,842,297 7,551,348 2,294,797 (5,256,551) Charges to Appropriations (Outflow): Public safety 240,725 430,150 298,818 131,332 Parks and recreation 67,500 427,268 347,419 79,849 Public works 26,100 222,221 144,992 77,229 Capital outlay 16,340 1,334,560 3,954,018 (2,619,458) Total Charges to Appropriations 350,665 2,414,199 4,745,247 (2,331,048) Budgetary Fund Balance, June 30 6,491,632$ 5,137,149$ (2,450,450)$ (7,587,599)$ 97 CITY OF AZUSA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2016 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). 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. 98 CITY OF AZUSA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 Budget Information (Continued) Expenditures Appropriations Excess General Fund: General Government: City Council 131,156$ 127,250$ (3,906)$ City Attorney 267,524 250,000 (17,524) Administration 467,839 462,540 (5,299) City Clerk 492,903 433,652 (59,251) Library Services - General 1,021,305 1,009,640 (11,665) Library Services - Youth 32,391 31,430 (961) Finance - Accounting 996,029 871,160 (124,869) Purchasing 231,182 224,695 (6,487) Printing Services 8,826 7,800 (1,026) Business License 270,114 249,290 (20,824) Public Safety: Police 16,588,096 16,138,910 (449,186) INF 343,833 318,315 (25,518) Community Development: Planning 402,103 373,465 (28,638) Building Regulation 680,969 670,520 (10,449) Code Enforcement 591,559 555,605 (35,954) Parks and Recreation: Recreation 1,549,366 1,443,850 (105,516) Parks Maintenance 1,726,117 1,615,295 (110,822) Public Works: Graffiti Removal 58,030 17,200 (40,830) Facilities Maintenance 512,984 505,815 (7,169) Debt Service: Interest and fiscal charges 235,076 223,685 (11,391) Grants & Seizure Fund 4,745,247 2,414,199 (2,331,048) Fund 99 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments 111,979$ 1,235,190$ 1,152,069$ -$ Receivables: Accounts - 29,114 13,766 112,469 Taxes - - - - Notes and loans - - - 57,237 Accrued interest - 675 645 - Prepaid costs - - - - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agents - - - - Total Assets 111,979$ 1,264,979$ 1,166,480$ 169,706$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 57,049$ 19,601$ 47,468$ 39,403$ Accrued liabilities 54,930 23,617 15,910 6,570 Unearned revenues - - - - Deposits payable - - - - Due to other funds - - - 89,392 Advances from other funds - - - - Total Liabilities 111,979 43,218 63,378 135,365 Deferred Inflows of Resources: Unavailable revenues - - 13,362 56,858 Total Deferred Inflows of Resources - - 13,362 56,858 Fund Balances: Nonspendable: Prepaid costs - - - - Restricted for: Community development projects - 1,221,761 1,089,740 - Public safety - - - - Capital Projects - - - - Debt service - - - - Unassigned - - - (22,517) Fund Balance Total - 1,221,761 1,089,740 (22,517) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 111,979$ 1,264,979$ 1,166,480$ 169,706$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 100 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs 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: Nonspendable: Prepaid costs 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) 48,686$ 777,204$ 145,721$ 223,763$ 2,178 70,950 17,826 - - - - - - - - - - 421 78 - 12 - - - - - - - - - - - 50,876$ 848,575$ 163,625$ 223,763$ 364$ 41,719$ 2,928$ 3,320$ 22,456 10,466 - - - - - 177,990 - - - - - - - - - - - - 22,820 52,185 2,928 181,310 - - - - - - - - 12 - - - 28,044 796,390 - - - - - 42,453 - - 160,697 - - - - - - - - - 28,056 796,390 160,697 42,453 50,876$ 848,575$ 163,625$ 223,763$ Special Revenue Funds Senior Nutrition Public Benefit Program Air Quality Improvement Supplemental Law Enforcement 101 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs 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: Nonspendable: Prepaid costs Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances 104,841$ 743,665$ -$ 728,940$ - 1,603 1,395 - - 4,931 - - - - - - - 434 - - - - - - - - - - - - - - 104,841$ 750,633$ 1,395$ 728,940$ -$ 33,481$ -$ 7,365$ - 6,912 - - - - - - - 12,370 - - - - 13,809 - - - - - - 52,763 13,809 7,365 - - - - - - - - - - - - - - - - 104,841 - - - - 697,870 - 721,575 - - - - - - (12,414) - 104,841 697,870 (12,414) 721,575 104,841$ 750,633$ 1,395$ 728,940$ Special Revenue Funds Fire Safety Monrovia Nursery Employee Benefits Utility Mitigation 102 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs 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: Nonspendable: Prepaid costs Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,524,775$ -$ 1,430,843$ 400,713$ - - - 14,687 - - - - - - 2,948 1,490 879 - 1,016 - - - - - - - - - - - 3,513,489 - 1,525,654$ -$ 4,948,296$ 416,890$ -$ -$ 432,849$ 5,549$ - - 5,665 5,575 - - - - - - - - - 27 - - - - - - - 27 438,514 11,124 - - - - - - - - - - - - 1,525,654 - - - - - - - - - 4,509,782 405,766 - - - - - (27) - - 1,525,654 (27) 4,509,782 405,766 1,525,654$ -$ 4,948,296$ 416,890$ Special Revenue Funds Highway 39 LACMTA Measure R AB939 Fee 103 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs 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: Nonspendable: Prepaid costs Restricted for: Community development projects Public safety Capital Projects Debt service Unassigned Fund Balance Total Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds 505,159$ 78,381$ 719,166$ 397,430$ - - - - - - - - - - - - 291 40 - 235 - - - - - - 30,293 - - - - - 505,450$ 78,421$ 749,459$ 397,665$ -$ 41,501$ -$ 68,232$ - - - - - - - - - - - - - - - - - - 750,000 - - 41,501 750,000 68,232 - - - - - - - - - - - - - - - 329,433 - - - - 505,450 36,920 - - - - - - - - (541) - 505,450 36,920 (541) 329,433 505,450$ 78,421$ 749,459$ 397,665$ Capital Projects Funds Rosedale Traffic Mitigation Park In-lieu Capital Projects Public Works Endowment 104 CITY OF AZUSA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Prepaid costs 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: Nonspendable: Prepaid costs 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 155$ 10,328,680$ - 263,988 - 4,931 2,020,000 2,081,675 - 4,714 4,416 4,428 - 30,293 483,430 3,996,919 2,508,001$ 16,715,628$ -$ 800,829$ - 152,101 - 177,990 - 12,370 - 103,228 - 750,000 - 1,996,518 2,020,000 2,090,220 2,020,000 2,090,220 4,416 4,428 - 4,991,022 - 147,294 - 7,038,060 483,585 483,585 - (35,499) 488,001 12,628,890 2,508,001$ 16,715,628$ Debt Service Funds Public Financing Authority 105 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Taxes -$ 873,361$ 723,224$ -$ Intergovernmental 1,066,267 207,530 - 506,152 Charges for services - 22,545 43,696 - Use of money and property 53 8,633 12,016 - Contributions - - - - Miscellaneous 2,684 - 1,610 2,001 Total Revenues 1,069,004 1,112,069 780,546 508,153 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - 338,988 Parks and recreation 52,118 - - - Public works 1,094,143 659,371 538,446 - Capital outlay - - 985,537 191,682 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,146,261 659,371 1,523,983 530,670 Excess (Deficiency) of Revenues Over (Under) Expenditures (77,257) 452,698 (743,437) (22,517) Other Financing Sources (Uses): Transfers in 59,902 - - 5,518 Transfers out - - - - Debt issued - - - - Bond premium - - - - Total Other Financing Sources (Uses) 59,902 - - 5,518 Net Change in Fund Balances (17,355) 452,698 (743,437) (16,999) Fund Balances, Beginning of Year 17,355 769,063 1,833,177 (5,518) Fund Balances, End of Year -$ 1,221,761$ 1,089,740$ (22,517)$ Special Revenue Funds State Gasoline Tax Proposition A Proposition C Community Development Block Grant 106 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 Debt issued Bond premium Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ 127,592 - 62,837 27,680 - 1,070,202 13,294 - - 5,364 1,060 1,546 78,849 - - - 17,574 - - - 224,015 1,075,566 77,191 29,226 - 231,499 - - - - - 27,680 - 574,329 - - 346,244 - - - - - 23,400 - - - 17,526 - - - - - - - - - 346,244 805,828 40,926 27,680 (122,229) 269,738 36,265 1,546 150,285 - - - - - - - - - - - - - - - 150,285 - - - 28,056 269,738 36,265 1,546 - 526,652 124,432 40,907 28,056$ 796,390$ 160,697$ 42,453$ Senior Nutrition Supplemental Law Enforcement Special Revenue Funds Public Benefit Program Air Quality Improvement 107 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 Debt issued Bond premium Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ - - - - 144,841 515,195 - - - 6,571 - - - - - - - - - - 144,841 521,766 - - - - 61,029 - 4,398,290 - - - - - - - - - - - - 270,593 - 42,518 - - - - - - - - - - - - 4,398,290 270,593 61,029 42,518 (4,253,449) 251,173 (61,029) (42,518) 4,358,290 - 48,615 441,553 - (293,905) - - - - - - - - - - 4,358,290 (293,905) 48,615 441,553 104,841 (42,732) (12,414) 399,035 - 740,602 - 322,540 104,841$ 697,870$ (12,414)$ 721,575$ Special Revenue Funds Fire Safety Monrovia Nursery Employee Benefits Utility Mitigation 108 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 Debt issued Bond premium Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ 543,651$ -$ - - - - - - - 205,656 12,752 - 16,060 - - - - - - - - - 12,752 - 559,711 205,656 - - - - - - - - - - - - - - - - - - 496,675 188,548 - - 718,232 - - - - - - - 240,103 - - - 1,455,010 188,548 12,752 - (895,299) 17,108 - - - - - - - - - - 3,570,000 - - - 168,899 - - - 3,738,899 - 12,752 - 2,843,600 17,108 1,512,902 (27) 1,666,182 388,658 1,525,654$ (27)$ 4,509,782$ 405,766$ LACMTA Measure R AB939 Fee Highway 39 Special Revenue Funds 109 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 Debt issued Bond premium Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds -$ -$ -$ -$ - 14,593 - - - - - - 4,223 571 5 3,850 - - - - - - - - 4,223 15,164 5 3,850 - - - - - - - - - - 213 - - 13,267 - - - - - 149,965 - 41,500 - 28,740 - - - - - - - - - 54,767 213 178,705 4,223 (39,603) (208) (174,855) - - - - - - - - - - - - - - - - - - - - 4,223 (39,603) (208) (174,855) 501,227 76,523 (333) 504,288 505,450$ 36,920$ (541)$ 329,433$ Park In-lieu Capital Projects Public Works Endowment Rosedale Traffic Mitigation Capital Projects Funds 110 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 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 Debt issued Bond premium Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Total Nonmajor Governmental Funds -$ 2,140,236$ - 2,012,651 - 2,015,429 931 73,635 - 78,849 - 23,869 931 6,344,669 4,625 297,153 - 4,425,970 - 913,530 - 411,629 - 3,463,659 - 1,983,217 265,000 265,000 87,351 327,454 356,976 12,087,612 (356,045) (5,742,943) 361,395 5,425,558 - (293,905) - 3,570,000 - 168,899 361,395 8,870,552 5,350 3,127,609 482,651 9,501,281 488,001$ 12,628,890$ Public Financing Authority Debt Service Funds 111 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE STATE GASOLINE TAX YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 17,355$ 17,355$ 17,355$ -$ Resources (Inflows): Intergovernmental 1,119,365 1,119,365 1,066,267 (53,098) Use of money and property 500 500 53 (447) Miscellaneous - - 2,684 2,684 Transfers in 35,400 35,400 59,902 24,502 Amounts Available for Appropriations 1,172,620 1,172,620 1,146,261 (26,359) Charges to Appropriations (Outflow): Parks and recreation 59,000 59,000 52,118 6,882 Public works 1,381,900 1,397,580 1,094,143 303,437 Total Charges to Appropriations 1,440,900 1,456,580 1,146,261 310,319 Budgetary Fund Balance, June 30 (268,280)$ (283,960)$ -$ 283,960$ 112 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION A YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 769,063$ 769,063$ 769,063$ -$ Resources (Inflows): Taxes 853,250 853,250 873,361 20,111 Intergovernmental 116,000 116,000 207,530 91,530 Charges for services 22,270 22,270 22,545 275 Use of money and property 2,100 2,100 8,633 6,533 Amounts Available for Appropriations 1,762,683 1,762,683 1,881,132 118,449 Charges to Appropriations (Outflow): Public works 762,950 812,950 659,371 153,579 Total Charges to Appropriations 762,950 812,950 659,371 153,579 Budgetary Fund Balance, June 30 999,733$ 949,733$ 1,221,761$ 272,028$ 113 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PROPOSITION C YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,833,177$ 1,833,177$ 1,833,177$ -$ Resources (Inflows): Taxes 707,750 707,750 723,224 15,474 Charges for services 75,370 75,370 43,696 (31,674) Use of money and property 5,500 5,500 12,016 6,516 Miscellaneous 1,520,000 1,520,000 1,610 (1,518,390) Amounts Available for Appropriations 4,141,797 4,141,797 2,613,723 (1,528,074) Charges to Appropriations (Outflow): Public works 556,930 753,475 538,446 215,029 Capital outlay - 1,507,490 985,537 521,953 Total Charges to Appropriations 556,930 2,260,965 1,523,983 736,982 Budgetary Fund Balance, June 30 3,584,867$ 1,880,832$ 1,089,740$ (791,092)$ 114 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (5,518)$ (5,518)$ (5,518)$ -$ Resources (Inflows): Intergovernmental 428,635 428,635 506,152 77,517 Miscellaneous 114,050 114,050 2,001 (112,049) Transfers in - - 5,518 5,518 Amounts Available for Appropriations 537,167 537,167 508,153 (29,014) Charges to Appropriations (Outflow): Community development 603,675 794,221 338,988 455,233 Capital outlay 242,370 484,740 191,682 293,058 Total Charges to Appropriations 846,045 1,278,961 530,670 748,291 Budgetary Fund Balance, June 30 (308,878)$ (741,794)$ (22,517)$ 719,277$ 115 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SENIOR NUTRITION YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 112,400 118,870 127,592 8,722 Contributions 58,500 58,500 78,849 20,349 Miscellaneous 16,500 16,500 17,574 1,074 Transfers in 150,285 150,285 150,285 - Amounts Available for Appropriations 337,685 344,155 374,300 30,145 Charges to Appropriations (Outflow): Parks and recreation 339,725 346,195 346,244 (49) Total Charges to Appropriations 339,725 346,195 346,244 (49) Budgetary Fund Balance, June 30 (2,040)$ (2,040)$ 28,056$ 30,096$ 116 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC BENEFIT PROGRAM YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 526,652$ 526,652$ 526,652$ -$ Resources (Inflows): Charges for services 1,102,950 1,102,950 1,070,202 (32,748) Use of money and property 1,000 1,000 5,364 4,364 Amounts Available for Appropriations 1,630,602 1,630,602 1,602,218 (28,384) Charges to Appropriations (Outflow): General government 288,615 288,615 231,499 57,116 Community development 728,500 728,500 574,329 154,171 Capital outlay 282,175 282,175 - 282,175 Total Charges to Appropriations 1,299,290 1,299,290 805,828 493,462 Budgetary Fund Balance, June 30 331,312$ 331,312$ 796,390$ 465,078$ 117 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 124,432$ 124,432$ 124,432$ -$ Resources (Inflows): Intergovernmental 59,400 59,400 62,837 3,437 Charges for services 15,320 15,320 13,294 (2,026) Use of money and property 1,400 1,400 1,060 (340) Miscellaneous - 30,000 - (30,000) Amounts Available for Appropriations 200,552 230,552 201,623 (28,929) Charges to Appropriations (Outflow): Public works 32,320 32,320 23,400 8,920 Capital outlay 19,345 96,750 17,526 79,224 Total Charges to Appropriations 51,665 129,070 40,926 88,144 Budgetary Fund Balance, June 30 148,887$ 101,482$ 160,697$ 59,215$ 118 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE SUPPLEMENTAL LAW ENFORCEMENT YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 40,907$ 40,907$ 40,907$ -$ Resources (Inflows): Intergovernmental - 28,340 27,680 (660) Use of money and property - - 1,546 1,546 Amounts Available for Appropriations 40,907 69,247 70,133 886 Charges to Appropriations (Outflow): Public safety - 28,340 27,680 660 Total Charges to Appropriations - 28,340 27,680 660 Budgetary Fund Balance, June 30 40,907$ 40,907$ 42,453$ 1,546$ 119 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE FIRE SAFETY YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Charges for services 40,000 40,000 144,841 104,841 Transfers in 4,358,290 4,358,290 4,358,290 - Amounts Available for Appropriations 4,398,290 4,398,290 4,503,131 104,841 Charges to Appropriations (Outflow): Public safety 4,398,290 4,398,290 4,398,290 - Total Charges to Appropriations 4,398,290 4,398,290 4,398,290 - Budgetary Fund Balance, June 30 -$ -$ 104,841$ 104,841$ 120 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MONROVIA NURSERY YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 740,602$ 740,602$ 740,602$ -$ Resources (Inflows): Charges for services 606,000 606,000 515,195 (90,805) Use of money and property 3,700 3,700 6,571 2,871 Amounts Available for Appropriations 1,350,302 1,350,302 1,262,368 (87,934) Charges to Appropriations (Outflow): Public works 331,695 331,695 270,593 61,102 Transfers out 293,905 293,905 293,905 - Total Charges to Appropriations 625,600 625,600 564,498 61,102 Budgetary Fund Balance, June 30 724,702$ 724,702$ 697,870$ (26,832)$ 121 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFITS YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Transfers in 540,180 540,180 48,615 (491,565) Amounts Available for Appropriations 540,180 540,180 48,615 (491,565) Charges to Appropriations (Outflow): General government 540,180 715,980 61,029 654,951 Total Charges to Appropriations 540,180 715,980 61,029 654,951 Budgetary Fund Balance, June 30 -$ (175,800)$ (12,414)$ 163,386$ 122 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE UTILITY MITIGATION YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 322,540$ 322,540$ 322,540$ -$ Resources (Inflows): Transfers in 125,000 125,000 441,553 316,553 Amounts Available for Appropriations 447,540 447,540 764,093 316,553 Charges to Appropriations (Outflow): Public works 120,000 186,000 42,518 143,482 Total Charges to Appropriations 120,000 186,000 42,518 143,482 Budgetary Fund Balance, June 30 327,540$ 261,540$ 721,575$ 460,035$ 123 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE LACMTA YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (27)$ (27)$ (27)$ -$ Resources (Inflows): Intergovernmental 820,000 820,000 - (820,000) Amounts Available for Appropriations 819,973 819,973 (27) (820,000) Charges to Appropriations (Outflow): Public works - 305,084 - 305,084 Capital outlay 500,000 500,000 - 500,000 Total Charges to Appropriations 500,000 805,084 - 805,084 Budgetary Fund Balance, June 30 319,973$ 14,889$ (27)$ (14,916)$ 124 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE MEASURE R YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,666,182$ 1,666,182$ 1,666,182$ -$ Resources (Inflows): Taxes 527,750 527,750 543,651 15,901 Use of money and property 6,000 6,000 16,060 10,060 Debt issued - - 3,570,000 3,570,000 Bond premium - - 168,899 168,899 Amounts Available for Appropriations 2,199,932 2,199,932 5,964,792 3,764,860 Charges to Appropriations (Outflow): Public works 211,725 588,435 496,675 91,760 Capital outlay 25,000 791,430 718,232 73,198 Debt service: Interest and fiscal charges - - 240,103 (240,103) Total Charges to Appropriations 236,725 1,379,865 1,455,010 (75,145) Budgetary Fund Balance, June 30 1,963,207$ 820,067$ 4,509,782$ 3,689,715$ 125 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE AB939 FEE YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 388,658$ 388,658$ 388,658$ -$ Resources (Inflows): Charges for services 215,100 215,100 205,656 (9,444) Amounts Available for Appropriations 603,758 603,758 594,314 (9,444) Charges to Appropriations (Outflow): Public works 244,780 244,780 188,548 56,232 Total Charges to Appropriations 244,780 244,780 188,548 56,232 Budgetary Fund Balance, June 30 358,978$ 358,978$ 405,766$ 46,788$ 126 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PARK IN-LIEU YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 76,523$ 76,523$ 76,523$ -$ Resources (Inflows): Intergovernmental 10,000 10,000 14,593 4,593 Use of money and property 50 50 571 521 Amounts Available for Appropriations 86,573 86,573 91,687 5,114 Charges to Appropriation (Outflow): Parks and recreation 35,970 35,970 13,267 22,703 Capital outlay - 41,500 41,500 - Total Charges to Appropriations 35,970 77,470 54,767 22,703 Budgetary Fund Balance, June 30 50,603$ 9,103$ 36,920$ 27,817$ 127 CITY OF AZUSA BUDGETARY COMPARISON SCHEDULE PUBLIC WORKS ENDOWMENT YEAR ENDED JUNE 30, 2016 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 504,288$ 504,288$ 504,288$ -$ Resources (Inflows): Use of money and property - - 3,850 3,850 Amounts Available for Appropriations 504,288 504,288 508,138 3,850 Charges to Appropriations (Outflow): Public works 107,500 234,330 149,965 84,365 Capital outlay 24,395 77,095 28,740 48,355 Total Charges to Appropriations 131,895 311,425 178,705 132,720 Budgetary Fund Balance, June 30 372,393$ 192,863$ 329,433$ 136,570$ 128 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2016 Totals Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 3,372,759$ 240,339$ 3,613,098$ Receivables: Accounts 320,999 458,727 779,726 Notes and loans 3,160 - 3,160 Accrued interest 1,809 - 1,809 Restricted: Cash with fiscal agent 1,456,489 - 1,456,489 Total Current Assets 5,155,216 699,066 5,854,282 Noncurrent: Capital assets - net of accumulated depreciation 10,433,586 - 10,433,586 Total Noncurrent Assets 10,433,586 - 10,433,586 Total Assets 15,588,802 699,066 16,287,868 Deferred Outflows of Resources: Deferred pension related items 82,577 - 82,577 Total Deferred Outflows of Resources 82,577 - 82,577 Total Assets and Deferred Outflows of Resources 15,671,379$ 699,066$ 16,370,445$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 30,387$ 546,010$ 576,397$ Accrued liabilities 34,993 - 34,993 Accrued interest 62,850 - 62,850 Accrued compensated absences 56,127 - 56,127 Bonds, notes, and capital leases 375,000 - 375,000 Total Current Liabilities 559,357 546,010 1,105,367 Noncurrent: Bonds, notes, and capital leases 3,990,000 - 3,990,000 Net pension liability 1,132,877 - 1,132,877 Total Noncurrent Liabilities 5,122,877 - 5,122,877 Total Liabilities 5,682,234 546,010 6,228,244 Deferred Inflows of Resources: Deferred pension related items 173,158 - 173,158 Total Deferred Inflows of Resources 173,158 - 173,158 Net Position: Net investment in capital assets 7,522,719 - 7,522,719 Unrestricted 2,293,268 153,056 2,446,324 Total Net Position 9,815,987 153,056 9,969,043 Total Liabilities, Net Position and Deferred Inflows of Resources 15,671,379$ 699,066$ 16,370,445$ Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 129 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2016 Totals Operating Revenues: Sales and service charges 2,679,660$ 3,465,932$ 6,145,592$ Miscellaneous 5,024 6,267 11,291 Total Operating Revenues 2,684,684 3,472,199 6,156,883 Operating Expenses: Administration and general 912,924 - 912,924 Treatment 524,338 - 524,338 Refuse collection - 3,342,897 3,342,897 Depreciation expense 488,339 - 488,339 Total Operating Expenses 1,925,601 3,342,897 5,268,498 Operating Income (Loss)759,083 129,302 888,385 Nonoperating Revenues (Expenses): Taxes - 630,981 630,981 Interest revenue 25,070 - 25,070 Interest expense (151,839) - (151,839) Special franchise fees (54,244) - (54,244) Total Nonoperating Revenues (Expenses)(181,013) 630,981 449,968 Income (Loss) Before Transfers 578,070 760,283 1,338,353 Transfers out (119,000) (747,935) (866,935) Changes in Net Position 459,070 12,348 471,418 Net Position: Beginning of Year, as originally reported 9,222,795 140,708 9,363,503 Restatements 134,122 - 134,122 Beginning of Fiscal Year, as restated 9,356,917 140,708 9,497,625 End of Fiscal Year 9,815,987$ 153,056$ 9,969,043$ Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 130 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2016 Totals Cash Flows from Operating Activities: Cash received from customers and users 2,671,401$ 3,427,513$ 6,098,914$ Cash paid to suppliers for goods and services (558,916) (3,288,736) (3,847,652) Cash paid to employees for services (946,090) - (946,090) Net Cash Provided by (Used in) Operating Activities 1,166,395 138,777 1,305,172 Cash Flows from Non-Capital Financing Activities: Cash transfers out (119,000) (747,935) (866,935) Net Cash Used in Non-Capital Financing Activities (119,000) (747,935) (866,935) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (89,218) - (89,218) Principal paid on capital debt (365,000) - (365,000) Interest paid on capital debt (156,833) - (156,833) Special franchise fees (54,244) - (54,244) Taxes - 630,981 630,981 Net Cash Provided by (Used in) Capital and Related Financing Activities (665,295) 630,981 (34,314) Cash Flows from Investing Activities: Issuance of new loans (3,160) - (3,160) Interest received 24,154 - 24,154 Net Cash Provided by Investing Activities 20,994 - 20,994 Net Decrease in Cash and Cash Equivalents 403,094 21,823 424,917 Cash and Cash Equivalents at Beginning of Year 4,426,154 218,516 4,644,670 Cash and Cash Equivalents at End of Year 4,829,248$ 240,339$ 5,069,587$ Reconciliation of Operating Income to Net Cash Provided by (Used in) Operating Activities: Operating income (loss)759,083$ 129,302$ 888,385$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 488,339 - 488,339 (Increase) decrease in accounts receivable (13,283) (44,686) (57,969) (Increase) decrease in deferred pension related outflows 4,918 - 4,918 Increase (decrease) in accounts payable (42,893) 54,161 11,268 Increase (decrease) in accrued liabilities 8,315 - 8,315 Increase (decrease) in compensated absences (22,382) - (22,382) Increase (decrease) in net pension liability 72,347 - 72,347 Increase (decrease) in deferred pension related inflows (88,049) - (88,049) Total Adjustments 407,312 9,475 416,787 Net Cash Provided by (Used in) Operating Activities 1,166,395$ 138,777$ 1,305,172$ Sewer/ Wastewater Refuse Contract Business-Type Activities - Enterprise Funds 131 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2016 Assets and Deferred Outflows of Resources: Assets: Current: Cash and investments 1,295,927$ 1,871,925$ 3,309$ 18,888$ Receivables: Accounts 702,858 - 96 - Notes and loans 3,717 537 - - Accrued interest 23,668 257 - - Prepaid costs - 25,752 - - Total Current Assets 2,026,170 1,898,471 3,405 18,888 Noncurrent: Capital assets - net of accumulated depreciation 515,938 - 29,680 394,406 Total Noncurrent Assets 515,938 - 29,680 394,406 Total Assets 2,542,108 1,898,471 33,085 413,294 Deferred Outflows of Resources: Deferred pension related items 486,625 16,455 - - Total Deferred Outflows of Resources 486,625 16,455 - - Total Assets and Deferred Outflows of Resources 3,028,733$ 1,914,926$ 33,085$ 413,294$ Liabilities, Net Position and Deferred Inflows of Resources: Liabilities: Current: Accounts payable 108,489$ 355,038$ -$ -$ Accrued liabilities 649,991 4,465 561 - Accrued compensated absences 209,043 3,033 - - Accrued claims and judgments - 2,317,141 - - Total Current Liabilities 967,523 2,679,677 561 - Noncurrent: Accrued compensated absences 15,577 1,011 - - Net pension liability 4,018,769 92,943 - - Total Noncurrent Liabilities 4,034,346 93,954 - - Total Liabilities 5,001,869 2,773,631 561 - Deferred Inflows of Resources: Deferred pension related items 430,780 (2,344) - - Total Deferred Inflows of Resources 430,780 (2,344) - - Net Position: Investment in capital assets 515,938 - 29,680 394,406 Unrestricted (2,919,854) (856,361) 2,844 18,888 Total Net Position (2,403,916) (856,361) 32,524 413,294 Total Liabilities, Net Position and Deferred Inflows of Resources 3,028,733$ 1,914,926$ 33,085$ 413,294$ Consumer Services Self Insurance Central Services Equipment Replacement Governmental Activities - Internal Service Funds 132 CITY OF AZUSA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2016 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 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: Investment in capital assets Unrestricted Total Net Position Total Liabilities, Net Position and Deferred Inflows of Resources Totals 222,636$ 3,412,685$ - 702,954 1,341 5,595 - 23,925 65,540 91,292 289,517 4,236,451 - 940,024 - 940,024 289,517 5,176,475 131,657 634,737 131,657 634,737 421,174$ 5,811,212$ 117,458$ 580,985$ 49,361 704,378 169,867 381,943 - 2,317,141 336,686 3,984,447 - 16,588 1,888,576 6,000,288 1,888,576 6,016,876 2,225,262 10,001,323 141,214 569,650 141,214 569,650 - 940,024 (1,945,302) (5,699,785) (1,945,302) (4,759,761) 421,174$ 5,811,212$ Governmental Activities - Internal Service Funds IT Services 133 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2016 Operating Revenues: Sales and service charges 6,856,766$ 2,464,950$ -$ -$ Miscellaneous 18,527 30,507 - 1,069 Total Operating Revenues 6,875,293 2,495,457 - 1,069 Operating Expenses: Administration and general 5,727,559 1,660,752 - - Source of supply 158,096 - - - Claims expense 553,282 2,003,484 - - Depreciation expense 109,830 - 1,492 108,358 Total Operating Expenses 6,548,767 3,664,236 1,492 108,358 Operating Income (Loss)326,526 (1,168,779) (1,492) (107,289) Nonoperating Revenues (Expenses): Interest revenue - 5,889 - 32 Loss on disposal of capital assets - - - (8,487) Gain on disposal of capital assets - - - 455 Total Nonoperating Revenues (Expenses)- 5,889 - (8,000) Income (Loss) Before Transfers 326,526 (1,162,890) (1,492) (115,289) Transfers in 132,335 15,780 37,525 76,300 Transfers out (428,790) - - - Changes in Net Position 30,071 (1,147,110) 36,033 (38,989) Net Position: Beginning of Year (2,433,987) 290,749 (3,509) 452,283 End of Fiscal Year (2,403,916)$ (856,361)$ 32,524$ 413,294$ Consumer Services Self Insurance Central Services Equipment Replacement Governmental Activities - Internal Service Funds 134 CITY OF AZUSA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2016 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 Loss on disposal of capital assets Gain 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 End of Fiscal Year Totals 1,524,385$ 10,846,101$ 92 50,195 1,524,477 10,896,296 1,380,767 8,769,078 135,611 293,707 - 2,556,766 - 219,680 1,516,378 11,839,231 8,099 (942,935) - 5,921 - (8,487) - 455 - (2,111) 8,099 (945,046) - 261,940 - (428,790) 8,099 (1,111,896) (1,953,401) (3,647,865) (1,945,302)$ (4,759,761)$ Governmental Activities - Internal Service Funds IT Services 135 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2016 Cash Flows from Operating Activities: Cash received from customers and users 6,347,636$ 2,470,704$ -$ 1,069$ Cash paid to suppliers for goods and services (559,052) (1,445,247) - - Cash paid to employees for services (5,817,001) (1,666,154) - - Net Cash Provided by (Used in) Operating Activities (28,417) (640,697) - 1,069 Cash Flows from Non-Capital Financing Activities: Cash transfers out (428,790) - - - Cash transfers in 132,335 15,780 37,525 76,300 Repayment made to other funds - - (34,216) - Net Cash Provided by (Used in) Non-Capital Financing Activities (296,455) 15,780 3,309 76,300 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (98,639) - - (77,205) Proceeds from sale of capital assets - - - 8,866 Net Cash Provided (Used) by Capital and Related Financing Activities (98,639) - - (68,339) Cash Flows from Investing Activities: Issuance of new loans - - - - Repayment received on loans 234 - - - Interest received - 6,201 - 35 Net Cash Provided by (Used in) Investing Activities 234 6,201 - 35 Net Increase (Decrease) in Cash and Cash Equivalents (423,277) (618,716) 3,309 9,065 Cash and Cash Equivalents at Beginning of Year 1,719,204 2,490,641 - 9,823 Cash and Cash Equivalents at End of Year 1,295,927$ 1,871,925$ 3,309$ 18,888$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)326,526$ (1,168,779)$ (1,492)$ (107,289)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 109,830 - 1,492 108,358 (Increase) decrease in accounts receivable (527,657) - - - (Increase) decrease in prepaid expense 4,390 (24,753) - - (Increase) decrease in deferred pension related outflows (130,460) (7,087) - - Increase (decrease) in accounts payable 13,140 (330,205) - - Increase (decrease) in accrued liabilities 134,796 1,574 - - Increase (decrease) in claims and judgments - 886,868 - - Increase (decrease) in compensated absences (59,371) (1,737) - - Increase (decrease) in net pension liability 505,332 25,848 - - Increase (decrease) in deferred pension related inflows (404,943) (22,426) - - Total Adjustments (354,943) 528,082 1,492 108,358 Net Cash Provided by (Used in) Operating Activities (28,417)$ (640,697)$ -$ 1,069$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets -$ -$ -$ 8,866$ Governmental Activities - Internal Service Funds Consumer Services Self Insurance Central Services Equipment Replacement 136 CITY OF AZUSA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2016 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 Proceeds from sale of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Issuance of new loans Repayment received on loans Interest received Net Cash Provided by (Used in) Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense (Increase) decrease in 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 Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets Totals 1,529,211$ 10,348,620$ (99,355) (2,103,654) (1,398,508) (8,881,663) 31,348 (636,697) - (428,790) - 261,940 - (34,216) - (201,066) - (175,844) - 8,866 - (166,978) (1,341) (1,341) - 234 - 6,236 (1,341) 5,129 30,007 (999,612) 192,629 4,412,297 222,636$ 3,412,685$ 8,099$ (942,935)$ - 219,680 - (527,657) 4,734 (15,629) (30,280) (167,827) 21,061 (296,004) 15,195 151,565 - 886,868 (9,642) (70,750) 131,526 662,706 (109,345) (536,714) 23,249 306,238 31,348$ (636,697)$ -$ 8,866$ IT Services Governmental Activities - Internal Service Funds 137 CITY OF AZUSA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2016 Balance Balance 7/1/2015 Additions Deductions 6/30/2016 Deposit Trust Assets: Pooled cash and investments 5,116,110$ 4,904,976$ 3,567,937$ 6,453,149$ Receivables: Accounts 11,276 269,249 11,276 269,249 Taxes 59,703 48,554 59,703 48,554 Total Assets 5,187,089$ 5,222,779$ 3,638,916$ 6,770,952$ Liabilities: Accounts payable 210,153$ 3,627,946$ 3,590,036$ 248,063$ Accrued liabilities 12,277 5,349 9,660 7,966 Deposits payable 4,944,964 5,687,987 4,141,073 6,491,878 Due to other governments 19,695 4,750 1,400 23,045 Total Liabilities 5,187,089 $ 9,326,032 $ 7,742,169 $ 6,770,952 $ 138 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION WATER - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2016 Water Operating Revenues: Residential sales 8,599,454$ Commercial sales 3,429,934 Industrial sales 2,282,486 Other sales 1,031,834 Fees 344,224 Other revenue 4,990,072 Total Operating Revenues 20,678,004 Operating Expenses: Production 6,003,201 Transmission and distribution 2,357,683 Customer accounting and sales 4,388,600 Uncollectible accounts 36,777 Administrative and general 610,783 Depreciation 3,752,679 Total Operating Expenses 17,149,723 Operating Income (Loss)3,528,281 Nonoperating Revenues (Expenses): Interest revenue 228,799 Interest expense (2,089,099) Franchise and in-lieu-tax (403,189) Total Nonoperating Revenues (Expenses)(2,263,489) Net Income 912,606 Net Position: Beginning of Fiscal Year 52,645,976 Restatements (131,278) Beginning of Fiscal Year, as restated 52,514,698 End of Fiscal Year 53,427,304$ 139 CITY OF AZUSA SUPPLEMENTAL STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION LIGHT - ENTERPRISE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2016 Light Operating Revenues: Sale/electricity - residential 12,570,806$ Sale/electricity - commercial and industrial 21,957,543 Sale/electricity - other 1,340,305 Sale/electricity - resale 4,567,753 Other revenue 2,015,847 Total Operating Revenues 42,452,254 Operating Expenses: Purchase power 25,726,445 Transmission/dispatching 3,750,031 Operation and maintenance 2,689,607 Uncollectible accounts 56,476 Administration general expenditures 4,120,699 Depreciation 1,274,013 Total Operating Expenses 37,617,271 Operating Income 4,834,983 Nonoperating Revenues (Expenses): Interest income 265,634 Interest expense (225,136) Franchise and in-lieu-tax (3,655,679) Total Nonoperating Revenues (Expenses)(3,615,181) Net Income Before Transfers 1,219,802 Transfers Out (136,762) Net Income 1,083,040 Net Position: Beginning of Fiscal Year 43,220,224 Restatements (70,688) Beginning of Fiscal Year, as restated 43,149,536 End of Fiscal Year 44,232,576$ 140 Pages Financial Trends 143-147 Revenue Capacity 148-157 Debt Capacity 158-164 Demographic and Economic Information 165-167 Operating Information 168-170 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. 141 THIS PAGE INTENTIONALLY LEFT BLANK 142 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 20 1 6 Go v e r n m e n t a l a c t i v i t i e s : In v e s t i n c a p i t a l a s s e t s , 20 , 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 $ 33 , 5 8 6 , 8 9 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 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 , 6 5 8 , 7 4 4 12 , 6 6 4 , 3 8 9 Un r e s t r i c t e d (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 , 4 1 6 , 1 7 1 ) (4 7 , 7 6 1 , 2 6 2 ) To t a l g o v e r n m e n t a l a c t i v i t i es n e t p o s i t i o n 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 5 ) $ ( 1 , 5 0 9 , 9 7 9 ) $ 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 , 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 $ 45 , 6 1 7 , 1 2 4 $ 56 , 9 8 5 , 2 6 5 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 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 11 , 4 4 8 , 7 7 8 Un r e s t r i c t e d 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 42 , 0 9 3 , 0 8 6 36 , 7 9 0 , 9 6 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 es n e t p o s i t i on 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 $ 1 0 5 , 2 2 5 , 0 0 7 $ 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 , 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 $ 73 , 7 3 8 , 4 2 6 $ 90 , 5 7 2 , 1 5 9 $ n e t o f r e l a t e d d e b t Re s t r i c t e d 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 , 7 4 4 , 2 5 0 24 , 1 1 3 , 1 6 7 Un r e s t r i c t e d 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 (4 , 3 2 3 , 0 8 5 ) (1 0 , 9 7 0 , 2 9 8 ) 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 15 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 1 $ 1 0 3 , 7 1 5 , 0 2 8 $ 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 143 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 20 1 6 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 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 $ 4, 1 5 7 , 2 4 3 $ Pu b l i c S a f e t y 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 82 1 , 2 8 1 Co m m u n i t y d e v e l o p m e n t 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 2, 4 6 3 , 0 1 2 Pa r k s a n d r e c r e a t i o n 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 1, 1 8 8 , 7 7 8 Pu b l i c W o r k s 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 73 9 , 5 2 1 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 3, 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 13 , 9 2 6 , 0 7 3 6, 4 3 5 , 8 3 9 Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s 49 7 , 9 0 5 46 8 , 2 7 9 28 6 , 8 7 5 65 4 , 4 6 7 10 9 , 2 2 6 13 7 , 1 0 2 2, 9 8 8 , 7 6 0 44 2 , 7 2 7 39 8 , 9 0 5 32 8 , 6 6 2 To t a l g o v e r n m e n t a l a c t i v i t i e s pr o g r a m r e v e n u e s 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 16 , 1 3 4 , 3 3 6 Bu s i n e s s - t y p e a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s Wa t e r 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 20 , 3 1 7 , 0 5 3 Li g h t 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 40 , 4 6 4 , 6 3 0 Se w e r / W a s t e w a t e r 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 2, 6 7 9 , 6 6 0 Re f u s e c o n t r a c t 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 3, 4 6 5 , 9 3 2 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s - - - 84 - - - - - - To t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m r e v e n u e s 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 66 , 9 2 7 , 2 7 5 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 , 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 $ 83 , 0 6 1 , 6 1 1 $ 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 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 $ 10 , 9 4 5 , 4 7 1 $ Pu b l i c s a f e t y 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 4 22 , 6 8 9 , 5 8 0 Co m m u n i t y d e v e l o p m e n t 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 2, 6 0 5 , 1 2 0 Pa r k s a n d r e c r e a t i o n 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 4, 5 4 6 , 9 6 5 Pu b l i c w o r k s 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 5, 3 3 1 , 1 6 9 In t e r e s t o n l o n g - t e r m d e b t 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 51 7 , 3 9 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 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 1 46 , 6 3 5 , 7 0 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 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 19 , 4 2 9 , 7 6 9 El e c t r i c 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 41 , 3 8 3 , 8 0 2 Se w e r / W a s t e w a t e r 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 2, 1 3 1 , 6 8 4 Re f u s e c o n t r a c t 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 3, 3 4 2 , 8 9 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 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 66 , 2 8 8 , 1 5 2 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 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 2 11 2 , 9 2 3 , 8 5 2 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 7 , 6 8 7 , 7 6 0 ) (3 8 , 0 8 7 , 0 5 9 ) (4 3 , 6 9 8 , 2 3 8 ) (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 2 ) (3 0 , 5 0 1 , 3 6 4 ) Bu s i n e s s - t y p e a c t i v i t i e s 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 63 9 , 1 2 3 To t a l n e t r e v e n u e s ( e x p e n s e s ) (3 6 , 2 0 6 , 3 8 0 ) (4 3 , 3 2 2 , 6 1 2 ) (4 9 , 1 0 7 , 5 6 9 ) (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 9 ) (2 9 , 8 6 2 , 2 4 1 ) 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 144 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 20 1 6 Ge n e r a l r e v e n u e s a n d o t h e r c h a n g e s i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s : Ta x e s : Pr o p e r t y t a x e s , g e n e r a l p u r p o s e 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 $ 9, 1 3 4 , 0 8 4 $ Tr a n s i e n t o c c u p a n c y t a x e s 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 34 7 , 9 6 5 Sa l e s t a x 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 8, 0 0 1 , 9 4 1 Fr a n c h i s e t a x e s 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 7, 5 7 5 , 5 0 6 Bu s i n e s s l i c e n s e s t a x e s 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 1, 9 9 5 , 0 0 0 Ut i l i t y U s e r s t a x 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 3, 2 6 6 , 3 8 3 Ot h e r t a x e s 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 1, 8 5 1 , 1 4 2 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 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 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 18 3 , 9 0 8 Ot h e r g e n e r a l r e v e n u e s 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 1, 7 0 9 , 7 5 7 - - - - - 59 , 9 3 3 , 8 3 2 - - (4 , 1 1 3 , 0 6 5 ) - Tr a n s f e r s 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 1, 6 5 2 , 3 3 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 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 35 , 7 1 8 , 0 2 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 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 63 0 , 9 8 1 In v e s t m e n t i n c o m e 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 53 2 , 3 0 3 Ga i n o n s a l e o f a s s e t s - (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 (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 ) (1 , 6 5 2 , 3 3 8 ) Mi s c e l l a n e o u s 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 2, 3 4 7 , 0 6 6 To t a l b u s i n e s s - t y p e a c t i v i t i e s 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 ) 1, 8 5 8 , 0 1 2 To t a l g e n e r a l r e v e n u e s 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 37 , 5 7 6 , 0 3 6 Ch a n g e s i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s 60 8 , 7 9 4 2, 1 1 4 , 1 2 9 (4 , 7 0 0 , 0 1 5 ) (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 2 5, 2 1 6 , 6 6 0 Bu s i n e s s - t y p e a c t i v i t i e s 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 2, 4 9 7 , 1 3 5 To t a l p r i m a r y g o v e r n m e n t 8, 8 9 7 , 7 6 6 $ (1 2 5 , 9 3 4 ) $ (7 , 9 6 0 , 8 7 4 ) $ (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 6 9 $ 7, 7 1 3 , 7 9 5 $ 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 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 o f re 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 145 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 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 14 2 , 1 3 6 $ 19 6 , 0 9 5 $ 50 0 , 3 8 9 $ 5, 8 2 7 , 2 9 4 $ Un r e s e r v e d 14 , 2 2 5 , 7 8 3 13 , 7 5 3 , 6 6 7 11 , 9 1 4 , 8 6 7 3, 7 7 7 , 7 5 3 To t a l g e n e r a l f u n d 14 , 3 6 7 , 9 1 9 $ 13 , 9 4 9 , 7 6 2 $ 12 , 4 1 5 , 2 5 6 $ 9, 6 0 5 , 0 4 7 $ Al l o t h e r g o v e r n m e n t a l f u n d s : Re s e r v e d 17 , 8 7 3 , 0 1 1 $ 23 , 0 6 9 , 6 4 0 $ 43 , 4 8 9 , 2 7 6 $ 47 , 4 7 2 , 5 6 4 $ Un r e s e r v e d , r e p o r t e d i n : Sp e c i a l r e v e n u e f u n d s 13 , 6 7 1 , 4 7 2 15 , 6 1 6 , 8 4 1 21 , 4 9 1 , 6 2 4 13 , 0 2 2 , 2 9 9 Ca p i t a l p r o j e c t s f u n d s 2, 4 8 7 , 6 5 5 1, 9 0 4 , 4 5 7 1, 3 2 0 , 5 5 0 1, 0 4 5 , 2 7 9 De b t s e r v i c e f u n d s 49 3 , 1 8 8 50 2 , 2 4 4 48 2 , 9 1 5 48 2 , 5 4 8 Re d e v e l o p m e n t a g e n c y (3 0 , 7 4 8 , 2 0 9 ) (2 3 , 3 0 7 , 8 9 0 ) (3 6 , 1 2 9 , 5 6 2 ) (4 2 , 7 0 9 , 3 5 9 ) To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 3, 7 7 7 , 1 1 7 $ 17 , 7 8 5 , 2 9 2 $ 30 , 6 5 4 , 8 0 3 $ 19 , 3 1 3 , 3 3 1 $ Ge n e r a l f u n d : 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 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 $ 17 , 3 1 9 , 4 4 6 $ 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 5, 8 3 3 , 7 3 3 To t a l g e n e r a l f u n d : 16 , 3 0 3 , 9 5 9 $ 15 , 1 3 4 , 1 5 6 $ 16 , 3 0 2 , 7 4 5 $ 20 , 4 1 7 , 9 4 8 $ 19 , 5 4 7 , 1 8 2 $ 23 , 1 5 3 , 1 7 9 $ Gr a n t s a n d S e i z u r e : No n s p e n d a b l e 8, 7 3 0 $ Un a s s i g n e d (2 , 4 5 9 , 1 8 0 ) To t a l g r a n t s a n d s e i z u r e : (2 , 4 5 0 , 4 5 0 ) $ Al l o t h e r g o v e r n m e n t a l f u n d s : No n s p e n d a b l e 14 , 8 9 2 , 5 5 1 $ 8, 0 3 8 $ 23 , 7 2 9 $ 11 , 3 6 3 $ 10 , 4 3 1 $ 4, 4 2 8 $ Re s t r i c t e d 23 , 2 9 7 , 5 9 9 11 , 0 6 2 , 0 7 4 9, 0 0 5 , 0 7 0 9, 2 2 2 , 1 6 6 10 , 4 9 9 , 0 2 0 12 , 6 5 9 , 9 6 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 ) (1 2 , 4 7 8 ) (3 5 , 4 9 9 ) To t a l a l l o t h e r g o v e r n m e n t a l f u n d s : 5, 5 6 5 , 1 1 2 $ 10 , 8 8 2 , 6 4 5 $ 8, 6 5 1 , 9 2 9 $ 9, 1 0 7 , 9 5 3 $ 10 , 4 9 6 , 9 7 3 $ 12 , 6 2 8 , 8 9 0 $ 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 . Gr a n t s a n d S e i z u r e w a s r e c l a s s i f i e d t o G o v e r n m e n t a l F u n d i n f i s c a l y e a r 2 0 1 5 - 1 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 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 Fi s c a l Y e a r 146 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 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 20 1 6 Re v e n u e s : Ta x e s 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 $ 32 , 1 7 2 , 0 2 1 $ As s e s s m e n t s 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 1, 8 7 5 , 2 7 1 Li c e n s e s a n d p e r m i t s 48 1 , 9 9 4 53 2 , 7 7 5 38 1 , 9 9 3 47 2 , 3 8 9 61 0 , 2 9 8 1, 2 7 0 , 2 2 1 1, 3 6 9 , 9 0 1 1, 5 8 6 , 1 1 7 1, 6 0 0 , 1 0 9 1, 0 9 6 , 3 2 5 In t e r g o v e r n m e n t a l 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 3, 6 3 5 , 8 9 0 Ch a r g e s f o r s e r v i c e s 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 4, 5 0 5 , 8 4 4 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 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 44 2 , 9 8 7 Fi n e s a n d f o r f e i t u r e s 81 5 , 5 5 8 89 7 , 8 1 6 96 7 , 0 1 2 1, 1 0 4 , 7 1 5 11 9 , 1 1 1 97 8 , 8 2 9 98 9 , 6 1 6 1, 3 4 3 , 3 1 8 1, 3 4 3 , 8 0 9 1, 3 2 8 , 3 8 3 Co n t r i b u t i o n s 10 6 , 5 9 2 99 , 2 1 1 10 6 , 4 5 0 11 3 , 3 6 3 15 7 , 9 3 0 10 9 , 2 5 5 64 , 4 6 1 84 , 8 7 0 10 , 8 6 4 , 4 8 5 99 , 5 9 4 Mi s c e l l a n e o u s 42 2 , 3 1 3 3, 0 0 1 , 9 3 8 71 3 , 5 4 7 57 3 , 0 0 8 - 1, 4 9 2 , 0 3 8 38 4 , 3 8 2 87 0 , 1 9 9 67 8 , 6 2 3 1, 7 5 9 , 4 7 3 To t a l R e v e n u e s 42 , 8 2 9 , 5 2 6 45 , 5 4 4 , 4 8 0 46 , 9 1 9 , 2 6 6 40 , 9 1 0 , 8 8 3 45 , 3 7 3 , 5 9 5 43 , 1 5 8 , 9 7 9 39 , 8 9 5 , 1 1 1 44 , 3 6 5 , 9 7 8 56 , 7 6 9 , 4 8 7 46 , 9 1 5 , 7 8 8 Ex p e n d i t u r e s : Cu r r e n t : Ge n e r a l g o v e r n m e n t 9, 0 7 0 , 9 6 7 11 , 1 3 6 , 4 2 0 12 , 4 9 0 , 5 8 5 14 , 2 4 8 , 8 8 1 10 , 6 2 3 , 6 2 3 10 , 0 7 0 , 7 1 3 7, 1 6 8 , 7 0 7 6, 7 6 2 , 4 6 7 6, 6 8 4 , 7 2 4 7, 5 4 5 , 4 4 3 Pu b l i c s a f e t y 16 , 8 1 3 , 6 9 9 18 , 5 3 4 , 1 2 6 26 , 9 4 8 , 7 9 3 19 , 1 4 4 , 1 6 9 19 , 8 2 4 , 3 6 9 20 , 3 7 9 , 6 7 2 20 , 0 7 7 , 8 6 8 20 , 8 7 7 , 0 9 0 21 , 7 7 9 , 0 6 9 22 , 4 9 0 , 8 2 0 Co m m u n i t y d e v e l o p m e n t 10 , 4 5 5 , 7 0 4 4, 1 6 6 , 2 2 3 5, 1 9 1 , 9 3 2 3, 2 7 1 , 6 7 2 3, 4 2 3 , 2 2 4 3, 2 2 3 , 2 0 1 3, 0 5 3 , 9 5 0 2, 5 6 4 , 9 1 5 2, 3 6 4 , 5 5 8 2, 5 8 8 , 1 6 1 Pa r k s a n d r e c r e a t i o n 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 4, 2 1 2 , 1 6 0 Pu b l i c W o r k s 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 4, 3 0 4 , 3 7 9 Ca p i t a l O u t l a y 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 6, 4 3 3 , 3 1 8 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, 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 1, 2 3 0 , 0 0 0 In t e r e s t a n d f i s c a l c h a r g e s 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 56 2 , 5 3 0 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 - - - - - - - - - - - 71 8 , 2 3 7 87 8 , 5 8 1 - - - - - - - To t a l E x p e n d i t u r e s 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 49 , 3 6 6 , 8 1 1 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 (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 (2 , 4 5 1 , 0 2 3 ) 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 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 6, 8 3 9 , 0 7 3 Tr a n s f e r o u t (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 ) (5 , 3 1 6 , 3 4 0 ) No t e s a n d l o a n s i s s u e d 16 6 , 7 1 1 20 , 8 2 0 , 1 8 2 25 , 8 7 9 , 9 2 4 39 1 , 8 6 7 98 6 , 3 1 4 1, 3 0 5 , 8 9 2 - - - 3, 5 7 0 , 0 0 0 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 ) - - - - - - 16 8 , 8 9 9 To t a l O t h e r F i n a n c i n g S o u r c e s ( U s e s ) (1 5 0 , 1 5 9 ) 20 , 1 2 8 , 0 7 8 27 , 8 0 5 , 9 0 1 1, 7 4 0 , 0 4 7 1, 7 1 4 , 7 0 4 2, 3 8 8 , 1 5 4 1, 2 9 7 , 3 2 9 1, 5 3 3 , 1 2 5 60 5 , 5 1 4 5, 2 6 1 , 6 3 2 Ex t r a o r d i n a r y g a i n / ( l o s s ) o n d i s s o l u t i o n o f r e d e v e l o p m e n t a g e n c y - - - - - 10 , 0 8 7 , 9 9 9 - - (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 (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 $ 2, 8 1 0 , 6 0 9 $ 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 9. 4 % 11 . 3 % 11 . 2 % 17 . 1 % 19 . 0 % 10 . 3 % 4. 9 % 5. 3 % 24 . 6 % 4. 2 % 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 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 147 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 2016 12,570,806 21,957,543 1,340,305 35,868,654 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 148 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 2016 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. 149 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 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 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, 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 % 1, 7 4 5 , 7 9 2 $ 4. 8 6 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 % 22 3 , 3 8 3 0. 6 3 0 % - 0. 0 0 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 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 % - 0. 0 0 0 % 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 % 59 7 , 6 1 5 1. 5 3 7 % 58 7 , 7 7 8 1. 6 3 9 % Az u s a U S D 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 % 87 1 , 0 0 2 2. 4 2 8 % Az u s a W e s t e r n 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 % - 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 % 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 % - 0. 0 0 0 % Ca l i f o r n i a A m f o r g e C o r p 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 % 27 0 , 4 8 8 0. 7 5 4 % Ca l m a t C i t e 2 3 5 3 - P 3 0. 0 0 0 % 0. 0 0 0 % 0. 0 0 0 % 0. 0 0 0 % 0. 0 0 0 % 0. 0 0 0 % 45 1 , 2 8 2 1. 2 5 8 % Ci t y o f A z u s a 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 % 1, 1 6 6 , 5 5 7 3. 2 5 2 % Ci t y o f G l e n d o r a 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 % 54 0 , 1 7 3 1. 5 0 6 % Co s t c o W h o l e s a l e C o r p . 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 % - 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 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 % - 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 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 % - 0. 0 0 0 % No r t h r o p G r u m m a n S y s . 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 % 50 3 , 8 0 9 1. 4 0 5 % Ra i n b i r d C o r p . / C A D i v . 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 % - 0. 0 0 0 % S & S F o o d s L L C 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 % 1, 6 7 2 , 1 0 6 4. 6 6 2 % St a t e r B r o s M a r k e t - 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 % - 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 % 30 1 , 7 0 7 0. 8 5 1 % - 0. 0 0 0 % - 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 % 40 1 , 0 7 5 1. 1 3 2 % - 0. 0 0 0 % - 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 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 % - 0. 0 0 0 % Ve r i z o n W i r e l e s s I n c 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 % 1, 2 6 5 , 3 6 1 3. 5 2 8 % T o t a l 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 % 9, 0 7 4 , 3 4 8 $ 25 . 2 9 9 % Hi s t o r i c a l i n f o r m a t i o n n o t a v a i l a b l e f o r 1 0 y e a r c o m p a r i s o n . So u r c e : C i t y o f A z u s a L i g h t & W a t e r D e p a r t m e n t Ci t y o f A z u s a La s t S e v e n F i s c a l Y e a r s 150 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 2016 8,899,454 3,429,934 2,282,486 1,031,834 15,643,708 Source: City of Azusa Light & Water Department City of Azusa Table 8 - Water Sold by Type of Customer Type of Customer 151 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 2016 17.03 1.007 2.129 3.031 NOTE: (2) Tiers changed from 17 to 12 in July 2009. 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. 152 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 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 Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r To t a l W a t e r Wa t e r 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 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 % 14 2 , 7 9 6 $ 0. 9 1 3 % Az u s a C a r e f r e e A s s o c i a t i o n 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 % - 0. 0 0 0 % Az u s a G r e e n s C o u n t r y C l u b 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 % 20 5 , 1 4 6 1. 3 1 1 % Az u s a U S D 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 % 30 3 , 1 2 7 1. 9 3 8 % Az u s a W e s t e r n 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 % 39 2 , 1 5 0 2. 5 0 7 % Ca l m a t S i t e # 1 0 5 5 - A - 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 % - 0. 0 0 0 % Ci t r u s C o l l e g e 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 % - 0. 0 0 0 % Ci t y o f A z u s a 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 % 17 0 , 8 6 9 1. 0 9 2 % Co v i n a V a l l e y U S D 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 % 13 7 , 5 7 6 0. 8 7 9 % He c t o r P e r a l e s - 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 % - 0. 0 0 0 % Lo v i n O v e n 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 % - 0. 0 0 0 % Mi k e N i j j a r - 0 6 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 % - 0. 0 0 0 % Mi l l e r B r e w e r y 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 % 92 8 , 7 9 4 5. 9 3 7 % Mo u n t a i n C o v e - 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 % 12 6 , 4 7 9 0. 8 0 8 % NC I 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 % - 0. 0 0 0 % Re a d y P a c 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 % 56 4 , 2 3 7 3. 6 0 7 % S& S F o o d s L L C 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 % 12 9 , 5 1 9 0. 8 2 8 % 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 % 34 , 9 8 3 0. 2 0 5 % - 0. 0 0 0 % - 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 % 59 , 8 9 8 0. 3 5 1 % - 0. 0 0 0 % - 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 % 51 , 7 6 0 0. 2 9 0 % - 0. 0 0 0 % - 0. 0 0 0 % T o t a l 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 % 3, 1 0 0 , 6 9 3 $ 19 . 8 2 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 153 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 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% 2016 2,718,542,945 291,006,304 963,951,180 3,973,500,429 0.13976 3,973,500,429 100.0% 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) 154 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 20 1 6 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 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 ) (1 ) To t a l D i r e c t R a t e 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 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 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 0. 1 0 4 3 0 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 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 0. 0 2 4 0 6 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 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 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 0. 1 2 5 8 1 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 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 0. 1 4 3 9 8 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 - - - - - - - - - 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 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 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 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 0. 0 2 3 0 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 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 0. 0 2 3 0 0 To t a l T a x R a t e 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 0 . 5 9 6 9 5 (1 ) Th e R e d e v e l o p m e n t A g e n c y d i s s o l u t i o n b y t h e S t a t e o f C a l i f o r n i a c a u s e d t h e t a x al l o c a t i o n b o n d s t o b e t r a n s f e r r e d t o t h e S u c c e s s o r A g e n c y a n d i s a f i d u c i a r y f u n d . In 1 9 7 8 , C a l i f o r n i a v o t e r s p a s s e d P r o p o s i t i o n 1 3 w h i c h s e t t h e p r o p e r t y t a x r a t e a t a 1 . 0 0 % f i x e d a m o u n t . So u r c e : L . A . C o u n t y A s s e s s o r 2 0 0 5 / 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 x i n g a g e n c i e s f o r w h i c h t h e s u b j e c t p r o p e r t y r e s i d e s w i t h i n . I n a d d i t i o n t o t h e 1 . 0 0 % f i x e d a m o u n t , p r o p e r t y o w n e r s a r e c h a r g e d t a x e s a s a p e r c e n t a g e o f a s s e s s e d p r o p e r t y v a l u e s f o r t h e pa y m e n t o f a n y v o t e r a p p r o v e d b o n d s . 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 la p p i n g P r o p e r t y T a x R a t e (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 Ge n e r a l f u n d t a x r a t e s a r e r e p r e s e n t a t i v e a n d b a s e d u p o n t h e 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 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 r a t e a r e a b y n e t t a x a b l e v a l u e . To t a l D i r e c t R a t e 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 r a 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 p r e s e n t e d i n t h e c o l u m n s a b o v e i s n o t t h e s u m o f t h e G e n e r a l C i t y R a t e a n d t h e R e d e v e l o p m e n t A g e n c y Ra t e ( R D A ) . 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 o n l y r a t e s f r o m i n d e b t e d n e s s a d o p t e d p r i o r t o 1 9 8 9 p e r C a l i f o r n i a S t a t e s t a t u t e . R D A d i r e c t a n d o v e r l a p p i n g r a t e s a r e a p p l i e d o n l y t o t h e i n c r e m e n t a l p r o p e r t y va l u e s . 155 Table 13 - Principal Property Tax Payers (Top Ten) Current Year and Ten Years Ago 2016 2006 Percentage of Percentage of City City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Northrop Grumman Systems Corporation 107,917,280$ 2.72% 1 128,498,609$ 4.98% Rainbird Corp/CA Div.41,385,518 1.04% 2 35,007,317 1.36% PPF Industrial 823 8th Street 33,008,298 0.83% 3 28,126,500 1.09% Citrus Crossing Properties Fee 30,070,764 0.76% 4 0.00% Azusa Pacific University 29,190,041 0.73% 5 0.00% Rosedale Land Partners II LLC 24,604,669 0.62% 6 14,502,069 0.56% Cemex Inc 23,994,112 0.60% 7 0.00% Azusa Land Reclamation Inc.22,366,328 0.56% 8 0.00% S & S Foods LLC 21,561,710 0.54% 9 0.00% VPM Soldano Senior Village LP 20,484,995 0.52% 10 0.00% Costco Wholesale Corporation 0.00%17,245,739 0.67% Sam Menlo Trust 0.00%16,618,743 0.64% Coastal Pacific Glen LLC 0.00%31,770,701 1.23% Criterion Catalyst Company LP 0.00%17,164,259 0.66% Reichhold Inc 0.00%14,660,224 0.57% JAR Azusa Association LTD 0.00%16,474,962 0.64% 354,583,715$ 8.92%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 - Page 35 of 2015-16 Property Data City of Azusa 156 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 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% 2016 4,503,235 4,399,245 97.7%66,910 4,466,155 99.2% 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 157 La s t T e n F i s c a l Y e a r s Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - t y p e A c t i v i t i e s Fi s c a l Y e a r Ce r t i f i c a t e Ta x Ta x a b l e To t a l Ce r t i f i c a t e To t a l To t a l Pe r c e n t a g e o f Pe r c e n t a g e o f En d e d of Al l o c a t i o n Pe n s i o n Go v e r n m e n t a l of Re v e n u e Bu s i n e s s - t y p e Pr i m a r y As s e s s e d Pe r s o n a l Ju n e 3 0 Lo a n s Pa r t i c i p a t i o n Bo n d s ( 1 ) Fu n d i n g B o n d s ( 2 ) Ac t i v i t i e s Lo a n s (7 ) Pa r t i c i p a t i o n ( 3 ) Bo n d s (4 ) Ac t i v i t i e s Go v e r n m e n t a l Va l u e s In c o m e 20 0 7 8, 8 9 9 , 0 6 6 4, 1 2 0 , 0 0 0 24 , 2 7 1 , 2 0 6 - 37 , 2 9 0 , 2 7 2 - 31 , 1 1 0 , 0 0 0 54 , 8 5 0 , 0 0 0 85 , 9 6 0 , 0 0 0 12 3 , 2 5 0 , 2 7 2 4. 0 6 % 14 . 4 9 % 20 0 8 8, 8 7 9 , 2 4 7 3, 9 1 0 , 0 0 0 39 , 5 4 6 , 6 9 8 - 52 , 3 3 5 , 9 4 5 - 29 , 8 2 5 , 0 0 0 54 , 8 5 0 , 0 0 0 84 , 6 7 5 , 0 0 0 13 7 , 0 1 0 , 9 4 5 4. 2 5 % 15 . 8 9 % 20 0 9 8, 9 7 4 , 1 7 2 3, 6 9 5 , 0 0 0 57 , 0 5 6 , 2 0 1 7, 2 1 5 , 0 0 0 76 , 9 4 0 , 3 7 3 - 28 , 5 0 0 , 0 0 0 54 , 8 5 0 , 0 0 0 83 , 3 5 0 , 0 0 0 16 0 , 2 9 0 , 3 7 3 4. 5 2 % 19 . 0 0 % 20 1 0 9, 3 6 6 , 0 3 8 3, 4 8 0 , 0 0 0 55 , 8 1 4 , 8 8 9 6, 7 3 5 , 0 0 0 75 , 3 9 5 , 9 2 7 - 27 , 1 2 5 , 0 0 0 54 , 5 7 0 , 0 0 0 81 , 6 9 5 , 0 0 0 15 7 , 0 9 0 , 9 2 7 4. 5 7 % 18 . 0 2 % 20 1 1 9, 6 8 5 , 0 1 5 3, 2 5 5 , 0 0 0 54 , 7 6 8 , 0 1 4 6, 1 8 0 , 0 0 0 73 , 8 8 8 , 0 2 9 - 25 , 6 9 0 , 0 0 0 54 , 2 7 5 , 0 0 0 79 , 9 6 5 , 0 0 0 15 3 , 8 5 3 , 0 2 9 4. 7 5 % 18 . 0 0 % 20 1 2 10 , 0 0 5 , 4 6 1 3, 0 2 5 , 0 0 0 - (6 ) 5, 5 5 5 , 0 0 0 18 , 5 8 5 , 4 6 1 5, 6 3 0 , 0 0 0 3, 0 7 0 , 0 0 0 68 , 5 0 0 , 0 0 0 77 , 2 0 0 , 0 0 0 95 , 7 8 5 , 4 6 1 2. 9 9 % 10 . 8 5 % 20 1 3 10 , 4 0 3 , 6 4 4 2, 7 8 5 , 0 0 0 - (6 ) 4, 8 5 5 , 0 0 0 18 , 0 4 3 , 6 4 4 5, 4 0 5 , 0 0 0 2, 5 4 0 , 0 0 0 68 , 1 8 0 , 0 0 0 76 , 1 2 5 , 0 0 0 94 , 1 6 8 , 6 4 4 2. 9 0 % 11 . 1 2 % 20 1 4 10 , 7 0 0 , 6 5 6 2, 5 4 0 , 0 0 0 - 4, 0 7 5 , 0 0 0 17 , 3 1 5 , 6 5 6 5, 0 8 0 , 0 0 0 1, 9 8 5 , 0 0 0 67 , 3 8 0 , 0 0 0 74 , 4 4 5 , 0 0 0 91 , 7 6 0 , 6 5 6 2. 6 8 % 10 . 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 71 , 5 7 5 , 0 0 0 77 , 0 6 5 , 0 0 0 2. 0 9 % (5 ) 20 1 6 - 5, 5 9 0 , 0 0 0 (9 ) 2, 2 4 0 , 0 0 0 7, 8 3 0 , 0 0 0 4, 3 6 5 , 0 0 0 78 0 , 0 0 0 60 , 2 0 5 , 0 0 0 65 , 3 5 0 , 0 0 0 73 , 1 8 0 , 0 0 0 1. 8 4 % (5 ) (1 ) Th e R e d e v e l o p m e n t A g e n c y i s s u e d $ 9 , 0 5 1 , 4 1 6 o f n e w T A B S i n 2 0 0 5 , $ 1 5 , 7 8 0 , 0 0 0 2 0 0 7 S e r i e s A M e r g e d P r o j e c t A r e a T A B S a n d $ 4 , 7 9 0 , 0 0 0 S e r i e s B M e r g e d P r o j e c t a r e a T A B S , $ 6 , 7 1 5 , 0 0 0 2 0 0 8 Se r i e s A M e r g e s P r o j e c t A r e a T A B S , a n d $ 1 1 , 5 8 0 , 0 0 0 2 0 0 8 H o u s i n g T a x A l l o c a t i o n B o n d s S e r i e s B . (2 ) Th e C i t y i s s u e d $ 7 , 2 1 5 , 0 0 0 o f t a x a b l e p e n s i o n f u n d i n g b o n d s i n 2 0 0 8 (3 ) Th e L i g h t F u n d i s s u e d $ 1 1 , 9 9 5 , 0 0 0 o f n e w C e r t i f i c a t e s o f P a r t i c i p a t i o n i n 2 0 0 3 ; i s s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 5 , 8 2 0 , 0 0 0 i n 2 0 1 2 . (4 ) Th e W a t e r F u n d r e p l a c e d i t s R e v e n u e B o n d w i t h C e r t i f i c a t e s o f P a r t i c i p a t i o n i n D e c e m b e r 2 0 0 3 ; i s s u e d r e f u n d i n g r e v e n u e b o n d s o f $ 8 , 7 1 5 , 0 0 0 i n 2 0 1 2 , a n d r e f u n d e d t h e 2 0 0 6 b o n d s w i t h 2 0 1 5 i s s u a n c e . (5 ) In f o r m a t i o n n o t a v a i l a b l e (6 ) Th e R e d e v e l o p m e n t A g e n c y d i s s o l u t i o n b y t h e S t a t e o f C a l i f o r n i a c a u s e d t h e t a x a l l o c a t i o n b o n d s t o b e t r a n s f e r r e d t o t h e S u c c e s s o r A g e n c y a n d i s a f i d u c i a r y f u n d . (7 ) Th e S e w e r F u n d a c q u i r e d a n i n s t a l l m e n t s a l e a g r e e m e n t l o a n o f $ 5 , 6 3 0 , 0 0 0 i n 2 0 1 1 t h a t i n c l u d e s t h e r e f u n d i n g o f 1 9 9 4 C O P s . (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 t h 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 . (9 ) In c l u d e s 2 0 0 3 C O P s a n d 2 0 1 6 T . R . I . P i n s t a l l m e n t a g r e e m e n t . 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 158 Fiscal Year Certificates Tax Debt per Ended of Allocation City June 30 Participation Bonds Total Capita 2007 4,120,000 24,271,206 28,391,206 589 2008 3,910,000 39,546,698 43,456,698 898 2009 3,695,000 57,056,201 60,751,201 1,246 2010 3,480,000 55,814,889 59,294,889 1,205 2011 3,255,000 54,768,014 58,023,014 1,245 2012 3,025,000 (1)3,025,000 64 2013 2,785,000 (1)2,785,000 58 2014 2,540,000 (1)2,540,000 53 2015 2,285,000 (1)2,285,000 47 2016 2,020,000 (1)2,020,000 41 (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 159 Percentage Net Gross Bonded Applicable Bonded Debt Balance To City Debt APFA 2003 Lease Revenue COP 2,020,000$ 100 2,020,000$ 2008 Taxable Pension Bonds 2,240,000 100 2,240,000 2016 T.R.I.P Installment Bonds 3,570,000 100 3,570,000 Total Direct Debt 7,830,000 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 63,033,037$ 2015/16 Assessed Valuation: $3,038,069,746 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, 2016 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. 160 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 20 1 6 As s e s s e d v a l u a t i o n 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 6 5 , 8 5 8 , 6 0 8 $ 3, 0 3 8 , 0 6 9 , 7 4 6 $ 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 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 6 , 4 6 4 , 6 5 2 75 9 , 5 1 7 , 4 3 7 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 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 , 4 6 9 , 6 9 8 11 3 , 9 2 7 , 6 1 5 Am o u n t o f d e b t a p p l i c a b l e t o d e b t l i m i t (1 ) - - - - - - - - - - Le g a l d e b t m a r g i n 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 , 4 6 9 , 6 9 8 11 3 , 9 2 7 , 6 1 5 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 (1 ) To t a l B o n d e d d e b t i s s u e d b y t h e C i t y , e x c l u d i n g c e r t i f i c a t e s o f p a r t i c i p a t i o n , t a x a l l o c a t i o n b o n d s , s p e c i a l a s s i g n m e n t b o n d s , r e v e n u e b o n d s p a y a b l e f r o m e n t e r p r i s e f u n d s , a n d p l e d g e m o r t g a g e 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 en t i t i e s o t h e r t h a n t h e C i t y o f A z u s a . 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 6/ 3 0 / 2 0 1 6 Fi s c a l Y e a r 161 Debt Service Requirements Fiscal Year Net Revenue Ended Operating Operating Available for June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage 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 2016 20,906,803 13,397,044 7,509,759 1,800,000 3,133,118 4,933,118 1.52 Calculation of debt coverage is in accordance with covenants set for in 2012 Series A Refunding Revenue Bonds. Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants. Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants. Interest payment of $1,266,469 made at time of refunding the 2006 bonds excluded. Debt Service Requirements Fiscal Year Net Revenue Ended Operating Operating Available for June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage 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 2016 42,717,899 36,343,258 6,374,641 620,000 237,138 857,138 7.44 Calculation of debt coverage in accordance with covenants set for in 2003 Certificates of Participation Series C and 2012 Series B Refunding Revenue Bonds. Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants. Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants. City of Azusa Administrative Services-Finance Department CITY OF AZUSA Table 19 - Pledged Revenue Coverage REVENUE BONDS - WATER FUND(1) CERTIFICATES OF PARTICIPATION AND REVENUE BONDS - ELECTRIC FUND (1) Last Ten Fiscal Years 162 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 2007 1,586,403 1,141,303 445,100 85,000 139,604 224,604 1.98 2008 1,671,968 1,195,146 476,822 95,000 123,547 218,547 2.18 2009 1,636,336 1,518,931 117,405 100,000 120,611 220,611 0.53 2010 1,642,481 1,545,220 97,261 105,000 123,892 228,892 0.42 2011 1,672,986 1,543,754 129,232 115,000 106,313 221,313 0.58 2012 2,225,335 1,888,871 336,464 0 33,110 33,110 10.16 2013 2,500,116 4,573,251 (2,073,135) 225,000 188,568 413,568 (5.01) 2014 2,577,662 2,202,296 375,366 325,000 179,595 504,595 0.74 2015 2,659,370 1,713,886 945,484 350,000 168,565 518,565 1.82 2016 2,707,398 1,437,262 1,270,136 365,000 156,833 521,833 2.43 Excludes interest and depreciation expense. City of Azusa Finance Department REVENUE BONDS - SEWER FUND CITY OF AZUSA Table 19 - Pledged Revenue Coverage (Continued) Last Ten Fiscal Years 163 Debt Service Requirements Fiscal Year Ended Tax June 30 Increment Principal Interest Total Coverage 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 4,817,379 730,000 3,560,840 4,290,840 1.12 2016 3,843,267 1,525,000 3,345,820 4,870,820 0.79 Source: City of Azusa Finance Department CITY OF AZUSA Table 20 - Pledged Revenue Coverage Last Ten Fiscal Years 164 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% 2016 49,690 10,170,292 (2)(2)3.8% 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 165 Ci t y o f A z u s a Ta b l e 2 2 - P r i n c i p a l E m p l o y e r s Cu r r e n t Y e a r a n d T e n Y e a r s A g o Pe r c e n t a g e Pe r c e n t a g e Nu m b e r o f of T o t a l C i t y Nu m b e r o f of T o t a l C i t y Em p l o y e r Em p l o y e e s Ra n k Em p l o y m e n t Em p l o y e e s Ra n k Em p l o y m e n t 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 18 2 3 (3 ) 1 8. 4 0 % 16 0 0 1 (2 ) Az u s a P a c i f i c U n i v e r s i t y 14 4 0 (3 ) 2 6. 6 4 % 90 0 3 (2 ) No r t h r o p G r u m m a n 85 0 3 3. 9 2 % 11 0 0 2 (2 ) Co s t c o W h o l e s a l e C o r p o r a t i o n 31 0 4 1. 4 3 % 31 1 5 (2 ) Ci t y o f A z u s a 30 2 5 1. 3 9 % 52 2 4 (2 ) S & S F o o d s L L C 29 0 (3 ) 6 1. 3 4 % (2 ) (2 ) (2 ) Ha n s o n D i s t r i b u t i n g C o m p a n y 22 0 7 1. 0 1 % (2 ) (2 ) (2 ) Bu e n a V i s t a F o o d P r o d u c t s 0. 0 0 % (2 ) (2 ) (2 ) Co l o r a m a W h o l e s a l e N u r s e r y 0. 0 0 % (2 ) (2 ) (2 ) Ha n s o n D i s t r i b u t i n g C o m p a n y 22 0 8 1. 0 1 % (2 ) (2 ) (2 ) Ta r g e t S t o r e 15 5 9 0. 7 1 % (2 ) (2 ) (2 ) Ca l i f o r n i a A m f o r g e 12 6 10 0. 6 5 % (2 ) (2 ) (2 ) To t a l o f T o p E m p l o y e r s 5, 7 3 6 4, 4 3 3 To t a l E m p l o y e e s i n C i t y 24 , 5 0 0 (1 ) - (2 ) So u r c e s : Da t a f r o m C i t y o f A z u s a B u s i n e s s L i c e n s e D i v i s i o n u n l e s s n o t e d . (1 ) Ca l i f o r n i a E m p l o y m e n t D e v e l o p m e n t D e p a r t m e n t (2 ) Da t a n o t a v a i l a b l e 20 1 5 - 1 6 20 0 6 - 0 7 166 by F u n c t i o n Fu n c t i o n 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 20 1 6 Ge n e r a l g o v e r n m e n t 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 . 1 4 6 25 . 8 2 1 Pu b l i c s a f e t y 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 95 . 2 0 0 Co m m u n i t y d e v e l o p m e n t 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 15 . 5 3 3 15 . 4 6 2 Pa r k s a n d r e c r e a t i o n 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 49 . 3 1 7 50 . 2 6 0 Pu b l i c w o r k s 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 . 1 8 1 30 . 2 5 9 W a t e r 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 46 . 6 1 7 44 . 3 3 0 El e c t r i c 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 32 . 4 9 2 32 . 1 7 0 Se w e r / W a s t e w a t e r 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 7. 5 4 0 8. 0 4 0 T o t a l 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 30 1 . 5 7 6 30 1 . 5 4 1 So u r c e : Ci t y o f A z u s a F i n a n c e D e p a r t m e n t As s i g n e d F u l l - T i m e E q u i v a l e n t ( F T E ) T o t a l s Ci t y o f A z u s a Ta b l e 2 3 - F u l l - t i m e a n d P a r t - t i m e E m p l o y e e s La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 167 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 20 1 6 Po l i c e : Ca l l s f o r s e r v i c e 52 , 0 0 0 56 , 1 6 6 56 , 6 1 0 54 , 8 9 6 54 , 7 3 4 57 , 2 1 0 57 , 6 3 7 54 , 3 6 3 44 , 8 4 2 49 , 0 0 7 Pa r k i n g c i t a t i o n s i s s u e d 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 5, 7 8 8 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 ) 15 . 0 13 . 3 14 . 3 2. 5 6. 0 4. 2 4. 3 5. 3 3. 0 1. 2 Pa r k s a n d r e c r e a t i o n : Nu m b e r o f r e c r e a t i o n c l a s s e s 84 84 19 6 31 0 56 73 10 1 21 1 17 7 58 4 Nu m b e r o f f a c i l i t y r e n t a l s 1, 4 9 7 1, 4 9 2 70 6 82 7 82 9 86 8 87 4 80 9 86 6 93 3 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 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 ) 29 , 9 3 4 Av e r a g e d a i l y c o n s u m p t i o n 27 , 3 1 9 23 , 2 9 6 22 , 8 3 2 21 , 5 1 7 20 , 2 3 0 20 , 8 1 9 22 , 1 7 9 21 , 9 7 4 19 , 4 3 8 16 , 9 5 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 , 5 3 1 15 , 6 5 0 15 , 4 0 3 15 , 2 7 6 (2 ) 15 , 3 6 2 (2 ) 15 , 5 6 7 (2 ) 15 , 7 4 9 (2 ) 15 , 9 5 5 (2 ) 16 , 4 6 6 (2 ) 16 , 7 4 0 Av e r a g e d a i l y c o n s u m p t i o n 70 0 , 1 6 7 69 1 , 0 7 0 69 3 , 4 6 9 67 2 , 9 2 0 65 4 , 0 5 0 64 8 , 0 2 0 67 7 , 8 7 1 68 5 , 6 9 9 70 5 , 1 0 0 69 5 , 0 6 8 (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 , 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 ) 15 , 9 6 8 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 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 ) 12 , 2 3 4 Av e r a g e d a i l y c o l l e c t i o n 10 9 11 4 12 2 18 4 17 7 17 8 17 9 18 0 18 5 19 3 (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 d i c a t o r s b y F u n c t i o n La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 168 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 20 1 6 Po l i c e : St a t i o n s 1 1 1 1 1 1 1 1 1 1 Pu b l i c W o r k s : St r e e t s ( l i n e a l m i l e s ) 17 0 17 0 17 0 17 1 17 0 17 4 17 6 17 7 17 8 17 8 Tr a f f i c s i g n a l s 52 52 52 53 52 53 53 55 56 57 Pa r k s a n d r e c r e a t i o n : Pa r k s 10 13 13 13 13 15 16 17 20 21 Pa r k a c r e a g e 58 60 61 61 61 64 64 77 84 85 Co m m u n i t y c e n t e r s 2 3 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 8 31 1 31 2 31 5 31 5 31 5 31 5 31 5 31 5 28 1 Nu m b e r o f f i r e h y d r a n t 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 2, 4 4 4 Ma x i m u m d a i l y c a p a c i t y 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 70 , 5 0 0 70 , 5 0 0 70 , 5 0 0 70 , 5 0 0 70 , 5 0 0 (h u n d r e d c u b i c f e e t ) Li g h t : Me t e r e d S t r e e t l i g h t s 65 65 65 65 65 65 65 65 65 64 Da i l y c o n s u m p t i o n ( k W h ) 16 9 16 9 16 9 16 9 16 2 16 2 16 2 16 2 16 2 16 4 Un M e t e r e d S t r e e t l i g h t s 2, 4 2 3 Da i l y c o n s u m p t i o n ( k W h ) 56 Se w e r : Sa n i t a r y s e w e r s ( m i l e s ) 61 61 61 61 61 80 80 80 80 80 St o r m s e w e r s ( m i l e s ) 15 15 15 15 15 15 16 16 16 16 Ma x i m u m d a i l y t r e a t m e n t c a p a c i t y 48 48 48 48 48 48 60 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 169 Talika M. Johnson General Overview Director of Finance Letter of Transmittal Management's Discussion and Analysis Charts General Fund Richard Lam Budget Analyst 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, 2016 170