HomeMy WebLinkAboutCAFR FINAL REPORT FY 16-17CITY OF AZUSA
CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2017
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CITY OF AZUSA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
PREPARED BY THE FINANCE DEPARTMENT
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2017
Table of Contents
Page
INTRODUCTORY SECTION
Transmittal Letter ..................................................................................................................................................... i
Directory of City Officials ........................................................................................................................................ vii
Organization Chart ................................................................................................................................................... viii
GFOA Certificate of 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 ........................................................................................................................... 23
Statement of Activities ................................................................................................................................ 24
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .......................................................................................................................................... 30
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................. 31
Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 32
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities ................................................................................................................... 33
Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................................... 37
Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 38
Statement of Cash Flows ...................................................................................................................... 39
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ................................................................................................... 41
Statement of Changes in Fiduciary Net Position .............................................................................. 42
Notes to Basic Financial Statements ................................................................................................................ 43
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2017
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Required Supplementary Information (Unaudited):
Schedule of Changes in the Net Pension Liability and Related Ratios –
CALPERS Agent Multiple-Employer Plan ............................................................................................... 110
Schedule of Contributions – CalPERS Agent Multiple-Employer Plan...................................................... 111
Schedule of Proportionate Share of the Net Pension Liability –
Cost Sharing Multiple-Employer Plan ..................................................................................................... 111
Schedule of Contributions – Cost Sharing Multiple-Employer Plan .......................................................... 112
Schedule of Changes in the Net Pension Liability and Related Ratios –
AMMA PARS Retirement Enhancement Plan ......................................................................................... 112
Schedule of Changes in the Net Pension Liability and Related Ratios –
Executive PARS Retirement Enhancement Plan ..................................................................................... 113
Schedule of Changes in the Net Pension Liability and Related Ratios –
IBEW PARS Retirement Enhancement Plan ............................................................................................ 114
Schedule of Changes in the Net Pension Liability and Related Ratios –
SEIU PARS Retirement Enhancement Plan ............................................................................................. 115
Schedule of Contribution – PARS Retirement Enhancement Plan .............................................................. 116
Schedule of Changes in the Total OPEB Liability and Related Ratios ........................................................ 117
Budgets and Budgetary Accounting ................................................................................................................ 118
Budgetary Comparison Schedule by Department – General Fund ............................................................ 119
Budgetary Comparison Schedule – Grants and Seizuire Fund ................................................................... 120
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ........................................................................................................................... 124
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 128
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
State Gasoline Tax Special Revenue Fund ......................................................................................... 132
Proposition A Special Revenue Fund ................................................................................................. 133
Proposition C Special Revenue Fund ................................................................................................. 134
Community Development Block Grant Special Revenue Fund ..................................................... 135
Senior Nutrition Special Revenue Fund ............................................................................................. 136
Public Benefit Program Special Revenue Fund ................................................................................. 137
Air Quality Improvement Special Revenue Fund ............................................................................ 138
Supplemental Law Enforcement Special Revenue Fund ................................................................. 139
Fire Safety Special Revenue Fund ....................................................................................................... 140
Monrovia Nursery Special Revenue Fund ........................................................................................ 141
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2017
Table of Contents, Continued
Employee Benefits Special Revenue Fund ......................................................................................... 142
Utility Mitigation Special Revenue Fund ........................................................................................... 143
Highway 39 Special Revenue Fund .................................................................................................... 144
LACMTA Special Revenue Fund ........................................................................................................ 145
Measure R Special Revenue Fund ...................................................................................................... 146
AB 939 Special Revenue Fund ............................................................................................................. 147
Rosedale Traffic Mitigation Special Revenue Fund ......................................................................... 148
Park In-Lieu Capital Project Fund ...................................................................................................... 149
Capital Projects Capital Project Fund ................................................................................................. 150
Public Works Endowment Capital Project Fund .............................................................................. 151
Public Financing Authority Debt Service Fund ................................................................................ 152
Page
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 154
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 155
Combining Statement of Cash Flows ........................................................................................................ 156
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 158
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 160
Combining Statement of Cash Flows ........................................................................................................ 162
Fiduciary Funds:
Statement of Changes in Agency Funds Assets and Liabilities ............................................................ 164
Supplemental Statement of Revenues, Expenses and Changes in
Net Position – Water – Enterprise Fund .......................................................................................................... 165
Supplemental Statement of Revenues, Expenses and Changes in
Net Position – Light – Enterprise Fund ........................................................................................................... 166
STATISTICAL SECTION (Unaudited)
Table 1 - Net Position by Component ............................................................................................................. 168
Table 2 - Changes in Net Position .................................................................................................................... 170
Table 3 - Fund Balances of Governmental Funds ........................................................................................... 174
Table 4 - Changes in Fund Balances of Governmental Funds ...................................................................... 176
Table 5 – Light Department, Electricity Sold by Type of Customer............................................................. 178
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2017
Table of Contents, Continued
Table 6 – Electricity Rates ................................................................................................................................... 179
Table 7 – Largest Electricity Customers ........................................................................................................... 180
Table 8 – Water Sold by Type of Customer ..................................................................................................... 182
Table 9 – Water Rates .......................................................................................................................................... 183
Table 10 – Largest Water Customers ............................................................................................................... 184
Table 11 – Assessed Value and Estimated Actual Value of Taxable Property .......................................... 186
Table 12 – Direct and Overlapping Property Rates ....................................................................................... 188
Table 13 – Principal Property Tax Payers ....................................................................................................... 190
Table 14 – Property Tax Levies and Collections ............................................................................................ 191
Table 15 – Ratios of Outstanding Debt by Type ............................................................................................ 192
Table 16 – Ratio of General Bonded Debt Outstanding ................................................................................ 194
Table 17 – Direct and Overlapping Debt ......................................................................................................... 195
Table 18 – Legal Debt Margin Information ..................................................................................................... 196
Table 19 – Pledged Revenue Coverage ........................................................................................................... 198
Table 20 – Pledged Revenue Coverage, Tax Allocation
Bonds – Redevelopment Agency ............................................................................................................... 200
Table 21 – Demographic and Economic Statistics ......................................................................................... 201
Table 22 – Principal Employers ........................................................................................................................ 202
Table 23 – Full-time and Part-time Employees by Function ........................................................................ 204
Table 24 – Operating Indictors by Function ................................................................................................... 206
Table 25 – Capital Asset Statistics by Function .............................................................................................. 208
Table 29 – Schedule of Credits .......................................................................................................................... 210
March 30, 2018
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 November 2021
Art Vasquez City Treasurer November 2021
Joseph R. Rocha Mayor November 2019
Edward Alvarez Councilmember November 2021
Angel Carrillo Councilmember November 2021
Robert Gonzales Councilmember November 2021
Uriel Macias Mayor Pro-Tem November 2021
DEPARTMENT HEADS TITLE PHONE NUMBER
Don Penman Interim 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
Miki Carpenter Director of Recreation & Family Services 626-812-5220
Yarek Lehr Interim Director of Utilities 626-812-5219
Tanya Bragg Director of Human Resources/Risk Management 626-812-5183
Talika M. Johnson Director of Finance 626-812-5203
Daryl L. Osby Fire Chief 626-974-8371
Marco Martinez City Attorney (Best, Best, & Krieger) 949-263-2603
Public SafetyLight and Water
Utilities Public Works
Sewer
Transportation
Graffiti
Abatement
Consumer
Services
Streets/
Sidewalk
Maintenance
Electric
Public Benefit Fire Safety
Water
Community
Development
Block Grant
Purchasing
Youth and
Outreach
Services
Successor
Agency
General
Services
Recreation &
Family Services
Parks
Maintenance
Police Services
City Clerk
Emergency
Services
Engineering
FacilitiesL&W Services Recreation
Human
Resources
Personnel
City of Azusa
Organizational Chart
Police
Library
Citizens of Azusa
Mayor & City Council
Utility Board
Successor Agency Board
City Manager
SA Executive Director
Information
Technology
City Services
City Attorney
Accounting
City Treasurer Advisory Boards
& Commissions
FinanceAdministration
City
Manager's
Office
City Clerk's
Office
Refuse
Community
Facilities
Districts
Community
Improvement
Debt ServicePlanning
Economic &
Community
Development
Building
Public
Information
Economic
Development
Senior Nutrition
Woman's Club
Contract
Services
Senior Center
Risk
Management
viii
Certificate of
Presented to
City of Azusa
For its Comprehensive Annual
June 30, 2016
Executive Director/CEO
Financial Report
for the Fiscal Year Ended
Reporting
in Financial
for Excellence
Achievement
Text38:California
Government Finance Officers Association
ix
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Address: 180 Grand Avenue, Suite 1500 Oakland, CA 94612 • Phone: 510.768.8251 • Fax: 510.768.8249
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Azusa
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 the City of Azusa,
California (City) as of and for the year ended June 30, 2017, 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.
2
To the Honorable Mayor and Members of the City Council
of the City of Azusa
Azusa, California
Page 2
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 as of June 30, 2017, 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, budgetary comparison information, pension required
supplementary information, and schedules of funding progress for other post employment benefits on
pages 5-18 and 109-120, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements, budgetary comparison schedules on pages 121 to 166,
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 the budgetary comparison
schedules on pages 121 to 166 are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual nonmajor fund financial statements, and the budgetary comparison
schedules on pages 121 to 166 are fairly stated in all material respects in relation to the basic financial
statements as a whole.
3
To the Honorable Mayor and Members of the City Council
of the City of Azusa
Azusa, California
Page 3
The introductory section and statistical section have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2018,
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.
Badawi and Associates
Certified Public Accountants
Oakland, California
March 30, 2018
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4
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
5
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
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, 2017. 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 2017 by $84,082,436 (net position).
Total City assets of $278,023,533 include $151,060,323 or 54.3% of non-current assets
attributed to capital assets, net of depreciation.
Total City liabilities of $209,181,269 include $186,962,685 or 89.4% of long-term liabilities
attributed mainly to tax allocation bonds, certificates of participation, pension, and other
post-employment liabilities.
As of June 30, 2017, the City’s governmental funds reported combined fund balances of
$38,925,815.
At the end of the current fiscal year, the total fund balance for the General Fund was
increased by $1,845,939 (including prior year restatements) to $25,063,905.
Total General Fund revenues received for the year were $40,759,058 and total General Fund
expenditures for the year were $34,667,583, an excess of revenues over expenditures
amounting to $6,091,475,excluding transfers and proceeds from sale of capital assets. 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.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
6
The statement of net position presents information on all of the City’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Azusa is
improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
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.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
7
The City of Azusa maintains 22 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 are considered unrestricted. The Grants and
Seizure Special Revenue Fund is presented separately as the funds are restricted by various
federal, state, and local grants. Data from the other 19 governmental funds are combined into a
single, aggregate presentation. Individual fund data for each of these non-major governmental
funds is provided in the form of combining statements elsewhere in this report.
The City of Azusa adopts an annual appropriated budget for each of its governmental funds. A
budgetary comparison statement has been provided for the General Fund and all Special
Revenue Funds, Capital Project Funds, and Debt Service Funds to demonstrate compliance with
this budget.
Proprietary funds. The City of Azusa maintains two different types of proprietary funds,
enterprise and internal service funds. Enterprise funds are used to report the same functions
presented as business type activities in the government-wide financial statements. The City uses
an enterprise fund to account for its Water, Light, Sewer/Wastewater and Refuse Contract
Utilities. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses an internal service fund to account
for its Consumer Services, Self-Insurance/Risk Management, Central Services, Equipment
Replacement, Intra-Governmental Technology 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.
Proprietary funds provide the same type of information as the government-wide financial
statements (business type activities), only in more detail. Information is presented separately in
the proprietary fund statement of net position and in the proprietary fund statement of
revenues, expenditures, and changes in net position for the Water and Light funds. The Water
and Light funds are considered to be major funds. The internal service funds are also presented
in the proprietary fund financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government, and the City’s role is purely custodial. Fiduciary funds are not
reflected in the government-wide financial statements because the resources of those funds are
not available to support the City’s own programs. All assets reported in Fiduciary funds are
offset by a liability; the accrual basis of accounting is used to recognize receivables and
payables.
3) Notes to the basic financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other supplementary information. The combining financial statements and schedules referred
to earlier in connection with non-major governmental funds and internal service funds are
presented immediately following the notes to the basic financial statements.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
8
Government-wide Financial Analysis
The following table presents a summary of the City’s assets, liabilities and net position for its
governmental and business type activities. As noted earlier, a government’s net position may
serve over time as a useful indicator of its financial position.
As of June 30, 2017, the City’s assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $84,082,436. This represents a decrease of $19.6 million from
the prior year and is mainly attributed to the increase in long-term liabilities.
The largest portion of the net position reflects the City’s $84.7 million net investment in capital
assets. Capital assets are the aggregated value of land, buildings and improvements that are
used to provide services. Although the City’s investment in its capital assets is reported net of
related debt, the resources needed to repay this debt must be provided from other sources since
the capital assets themselves cannot be used to liquidate these liabilities.
Another portion of the City’s net position is subject to external restrictions, such as debt
covenants, grantor’s stipulations, or enabling legislation, on how funds may be used. As of June
30, 2017, the restricted assets were $28 million of the total net position. Of this amount, $10.2
million is for a rate stabilization fund, $7.0 million for debt service related activities, $6.3 million
2017 2016 2017 2016 2017 2016
Current and other assets 45,561,257$ 45,655,734$ 81,401,953$ 77,156,361$ 126,963,210$ 122,812,095$
Capital assets, net 35,697,998 35,170,643 115,362,325 119,129,587 151,060,323 154,300,230
Total assets 81,259,255 80,826,377 196,764,278 196,285,948 278,023,533 277,112,325
Deferred charge on refunding - - 1,591,905 1,677,882 1,591,905 1,677,882
Deferred pension related items 13,772,555 4,369,370 3,301,796 1,477,914 17,074,351 5,847,284
Total deferred outflows of resources 13,772,555 4,369,370 4,893,701 3,155,796 18,666,256 7,525,166
Current liabilities 8,470,273 5,005,885 13,748,311 9,164,674 22,218,584 14,170,559
Long-term liabilities 106,247,608 77,048,426 80,715,077 83,439,171 186,962,685 160,487,597
Total liabilities 114,717,881 82,054,311 94,463,388 92,603,845 209,181,269 174,658,156
Deferred pension related items 2,518,440 4,651,415 907,644 1,612,892 3,426,084 6,264,307
Total deferred inflows of resources 2,518,440 4,651,415 907,644 1,612,892 3,426,084 6,264,307
Net investment in capital assets 33,818,379 33,586,894 50,924,797 56,985,265 84,743,176 90,572,159
Restricted 11,262,725 12,664,389 16,722,108 11,448,778 27,984,833 24,113,167
Unrestricted (67,285,615) (47,761,262) 38,640,042 36,790,964 (28,645,573) (10,970,298)
Total net position (deficits) (22,204,511)$ (1,509,979)$ 106,286,947$ 105,225,007$ 84,082,436$ 103,715,028$
Summary of Net Position (Deficits) for the year ended June 30
Governmental Business Type
Activities Activities Total
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
9
is restricted for community development projects such as transportation projects and $3.3
million for capital projects such as street repair and maintenance. The remaining amount relates
to Police grants.
At June 30, 2017 the unrestricted net position was a negative $28.6 million due to the early
implementation of GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. This statement has had a material impact on the
City’s financial statements, representing an increase of $24.3 million in the City’s reported other
postemployment benefits (OPEB) liability. The primary objective of GASB 75 is to improve
accounting and financial reporting by state and local governments for postemployment benefits
other than pensions or OPEB. It also improves information provided by state and local
governmental employers about financial support for OPEB that is provided by other entities.
See Notes 1 and 9 of the financial statements for further detail.
The following chart shows the comparison of the three components of net position for Fiscal
Years 2016-17 and 2015-16 (in millions):
Governmental activities. The following condensed summary of activities of the City’s
governmental activities for the year ended June 30, 2017 shows total net position is a negative
$22,204,511 a decrease of $20,694,532 from prior year and primarily attributable the
implementation of GASB 75.
Business type activities. Business type activities net position totaled $106,286,947, an increase
of $1,061,940 (1.0%) from the prior year and attributed to positive operating results.
Net Investment in
Capital Assets Restricted Unrestricted Total Net Position
FY 15/16 $90.6 $24.1 $(11.0) $103.7
FY 16/17 $84.7 $28.0 $(28.6) $84.1
$(15.0)
$‐
$15.0
$30.0
$45.0
$60.0
$75.0
$90.0
$105.0
Government‐wide Net Position
Year Ended June 30, 2017
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
10
Note: For comparative purposes, the amounts disclosed in the table above under the fiscal year 2016 column were restated to reflect prior period
adjustments and revenue classification corrections identified during fiscal year 2017.
The City’s total revenues were $117,513,588 and the costs of all programs and services were
$113,826,703. Fiscal year 2016-17 revenues decreased by $2,849,059 (2.4%). Expenses increased
by $902,851 (0.80%) from prior year. Key factors include:
The decrease of $2.2 million in the governmental activities revenue was mainly due to a
$3.5 million reduction in Public Works operating grants and contributions as a result of
a transit oriented grant proceeds recorded in the prior year, offset by increases in tax
revenues primarily as a result of higher property tax proceeds and increased
development activities throughout the City and in miscellaneous revenues reflecting
land sale proceeds.
Business activity revenues decreased by $0.6 million dollars due to a $2.3 million
reduction in miscellaneous revenues reflecting recognition of approximately $2.2 million
in revenues for completed developer related projects in prior years by the light and
water funds. The decrease was offset by increased charges for services primarily as a
result of higher sales of water due to relaxed water use restrictions following prior
drought conditions and increased sales of electricity.
2017 2016 2017 2016 2017 2016
Program Revenues:
Charges for services 10,012,151$ 10,245,867$ 68,638,367$ 66,927,275$ 78,650,518$ 77,173,142$
Operating contributions and grants 4,289,559 5,151,472 667,619 630,981 4,957,178 5,782,453
Capital contributions and grants 935,622 4,408,679 - - 935,622 4,408,679
General Revenues:
Taxes 30,766,788 29,488,392 - - 30,766,788 29,488,392
Investment earnings 460,691 454,021 512,838 532,303 973,529 986,324
Miscellaneous 1,504,953 451,591 - 2,347,066 1,504,953 2,798,657
Total Revenues 47,969,764 50,200,022 69,818,824 70,437,625 117,788,588 120,637,647
Expenses:
General Government 11,183,394 10,945,471 - - 11,183,394 10,945,471
Public Safety 24,610,769 22,689,580 - - 24,610,769 22,689,580
Community Development 3,170,213 2,605,120 - - 3,170,213 2,605,120
Parks and Recreation 4,365,600 4,546,965 - - 4,365,600 4,546,965
Public Works 4,404,636 5,331,169 - - 4,404,636 5,331,169
Interest on long-term debt 361,493 517,395 - - 361,493 517,395
Water - - 20,511,527 19,429,769 20,511,527 19,429,769
Light - - 39,464,774 41,383,802 39,464,774 41,383,802
Sewer/Wastewater - - 2,220,602 2,131,684 2,220,602 2,131,684
Refuse Contract - - 3,533,695 3,342,897 3,533,695 3,342,897
Total Expenses 48,096,105 46,635,700 65,730,598 66,288,152 113,826,703 112,923,852
Increase/(decrease) in net position
before transfers (126,341) 3,564,322 4,088,226 4,149,473 3,961,885 7,713,795
Extraordinary items - - - - - -
Transfers 1,739,277 1,652,338 (1,739,277) (1,652,338) - -
Change in Net Position 1,612,936 5,216,660 2,348,949 2,497,135 3,961,885 7,713,795
Net Position (Deficits) - Beginning (1,509,979) (7,636,124) 105,225,007 102,795,716 103,715,028 95,159,592
Restatement (22,307,468) 909,485 (1,287,009) (67,844) (23,594,477) 841,641
Net Position (Deficits) - Ending (22,204,511)$ (1,509,979)$ 106,286,947$ 105,225,007$ 84,082,436$ 103,715,028$
Summary of Changes in Net Position (Deficits) for the year ended June 30
Governmental Business Type
Activities Activities Total
City of A
Manage
June 30,
Compa
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Azusa
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June 30,
Azusa
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City of Azusa
Management’s Discussion and Analysis
June 30, 2017
13
Financial Analysis of the City’s Funds
As noted earlier, the City of Azusa uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. This information is useful in
assessing the City’s financing requirements. In particular, unreserved fund balance may serve
as a useful measure of a government’s net resources available for spending during the fiscal
year.
At the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $38,925,815, an increase of $5,590,974 in comparison with the prior year’s
revised fund balance. The increase is attributed to collection of deferred revenues from grant
receivables recorded in prior year, proceeds from sales of properties, and overall positive
operating results (revenues exceeding expenditures).
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2016-17,
its ending fund balance of $25,063,905 increased by $1,845,939 from prior year, primarily as a
result of increased tax and franchise fee revenues, property sale proceeds, and higher interest
earnings from an improved cash position and a Successor Agency loan reinstatement approved
by the Department of Finance.
The Grants and Seizure Fund is a special revenue fund to account for restricted monies received
by the City from various federal, state, and local grants. At the end of fiscal year 2016-17 the
Grants and Seizure Fund reported a fund balance of $1,192,286, an increase of $3,642,736 from
the prior fiscal year. The increase was primarily due to $3,520,190 received as reimbursement
for the Azusa Intermodal Parking Structure project.
Non-Major Governmental Funds consist of 19 special revenue, capital project, and debt service
funds. In total, these funds reported a combined ending 2016-17 fund balance of $12,669,624, an
increase of $102,299 from prior year. Activities by fund can be found starting on page 122 of this
report.
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
$42,300,765. Total unrestricted net position increased by $2,589,947 (6.5%) and total net position
increased by $1,890,040 (1.8%) from the previous fiscal year.
Unrestricted net position of the City’s Water Utility at the end of the year amounted to
$27,743,760, an increase of $450,104 (1.6%). Total net position decreased by $480,748 (0.9%)
from the prior year. Water revenues were up by $118,774 and expenses increased by $774,387.
The increase in revenues is a reflection of $2.8 million in increased water sales resulting from
lifted water restrictions and approved water rate increases, offset by a $1.0 million decrease in
water rights lease revenues. Expenses increased mainly due to higher water costs as a result of
increased consumption and increased personnel costs due to filling vacant positions and
employment agreements.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
14
Unrestricted net position of the City’s Light Utility at the end of the year amounted to
$11,593,183. Total unrestricted net position increased by $1,622,345 (16.3%) and total net
position also increased by $1,967,743 (4.4%) from the previous fiscal year. Light revenues and
expenses were down by $1,065,712 (2.5%) and $1,761,942 (4.2%), respectively, from prior year.
The decrease in revenues reflects recognition of approximately $2.2 million in revenues for
completed developer related projects recorded in prior years, offset by a near $1.0 million
increase in retail sales. Energy cost savings accounts for majority of the decrease in expenses.
The following chart highlights total revenue and total expenses for each of the business type
activities for fiscal year end June 30, 2017.
Water Light
Sewer/
Wastewater Refuse Contract
Revenue $21.0 $41.7 $2.8 $4.4
Expenses $20.8 $39.9 $2.4 $4.4
$‐
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
Business Type Activities ‐Revenues and Expenses
for the year ended June 30
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
15
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 30,509,515$ 30,574,515$ 32,293,121$ 1,718,606$
Charges for services 1,518,600 1,657,500 1,806,403 148,903
Assessments 1,719,562 1,719,562 1,941,549 221,987
Other revenue 5,174,411 5,189,111 4,722,292 (466,819)
Total revenue 38,922,088 39,140,688 40,763,365 1,622,677
Expenditures:
Operations 30,197,065 30,531,624 32,735,942 2,204,318
Capital Outlay 185,860 803,956 682,841 (121,115)
Debt Service 1,225,600 1,225,600 1,248,800 23,200
Total expenditures 31,608,525 32,561,180 34,667,583 2,106,403
Excess/(Deficiency) of revenues
over expenditures 7,313,563 6,579,508 6,095,782 (483,726)
Other Financing Sources/(Uses):
Transfers in 1,530,690 1,530,690 1,530,690 -
Transfers out 5,780,533 5,780,533 5,780,533 -
Total other financing sources (uses) (4,249,843) (4,249,843) (4,249,843) -
Net change in fund balance 3,063,720 2,329,665 1,845,939 (483,726)
Fund balance beginning of year 23,217,966 23,217,966 23,217,966 -
Fund balance end of year $26,281,686 $25,547,631 $25,063,905 ($483,726)
General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2017
Budgeted Amounts
The difference between the original expenditure budget and the final amended expenditure
budget was an increase of $952,655 with highlights as follows:
Increased vacation and sick leave payouts as a result of implementation of a
compensated absence time reduction program with the City’s Police Management
group.
Increased professional services costs for Human Resources and Risk Management
Director recruitment and interim staffing and to onboard a Community Development
Block Grant (CDBG) consultant.
Increased legal fees due to high volume of development activities.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
16
Amended training budget for citywide professional development.
Increased insurance premiums to pay for membership with new joint powers authority.
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, 2017 amounted to $151,060,323 (net of accumulated depreciation). This
investment includes land, construction in progress, land improvements, buildings and
structures, machinery and equipment, automotive equipment and infrastructure.
2017 2016 2017 2016 2017 2016
Land 3,562,016$ 1,819,536$ 2,988,973$ 2,988,973$ 6,550,989$ 4,808,509$
Construction in Progress 119,587 1,728,657 277,884 19,331 397,471 1,747,988
Land Improvements 1,086,616 1,204,276 343,618 382,045 1,430,234 1,586,321
Buildings and Structures 6,372,390 6,674,661 11,915,633 12,410,435 18,288,023 19,085,096
Machinery and Equipment 1,099,140 1,179,811 2,628,995 2,601,200 3,728,135 3,781,011
Automotive Equipment 525,691 585,195 299,896 332,647 825,587 917,842
Infrastructure 22,932,558 21,978,507 96,907,326 100,394,956 119,839,884 122,373,463
Total 35,697,998$ 35,170,643$ 115,362,325$ 119,129,587$ 151,060,323$ 154,300,230$
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 $125,010,313. Of this amount, $55,734,846 is a liability of the Governmental
Activities and $69,275,467 is a liability of the Business Type Activities. The increase in the
outstanding balances is the result of GASB 75 reporting.
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
17
2017 2016 2017 2016 2017 2016
Employee Leave Benefits 3,904,534$ 3,778,294$ 1,295,853$ 1,182,274$ 5,200,387$ 4,960,568$
Net OPEB Liability 37,053,449 14,751,995 1,950,181 - 39,003,630 14,751,995
Advance from the Successor Agency 8,208,833 8,208,833 - - 8,208,833 8,208,833
2003 COPS 1,745,000 2,020,000 130,000 780,000 1,875,000 2,800,000
2006 Water Revenue Bonds - - - - - -
2008 Taxable Pension Funding Bond 1,175,000 2,240,000 - - 1,175,000 2,240,000
2011 Sewer Installment Loan - - 3,990,000 4,365,000 3,990,000 4,365,000
2012 Electric Refunding Bond - - 5,820,000 5,820,000 5,820,000 5,820,000
2012 Water Refunding Bonds - - 5,910,000 6,645,000 5,910,000 6,645,000
2015 Water Refunding Bonds - - 46,590,000 47,740,000 46,590,000 47,740,000
2016 T.R.I.P Installment Sale 3,490,000 3,570,000 - - 3,490,000 3,570,000
Claims and Judgments Payable 2,317,141 - - - 2,317,141
Unamortized Premium/(Discount) 158,030 179,828 3,589,433 3,836,045 3,747,463 4,015,873
Total 55,734,846$ 37,066,091$ 69,275,467$ 70,368,319$ 125,010,313$ 107,434,410$
Outstanding Debt for the year ended June 30
Governmental Business Type
Activities Activates Total
Additional information on the City’s long-term debt and OPEB liability can be found in Notes 6
and 8, respectively, of Notes to the Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
The City strives to maintain high quality services while adopting a balanced budget. For fiscal
year 2017-18, the City adopted a balanced budget with a projected surplus of $1.5 million,
which includes one-time revenues of $2.8 million, offset by one-time expenditures of $1.2
million. Excluding one-time transactions, 2017-18 adopted budget had a projected deficit of $0.1
million with no proposed reduction in services, and is able to be absorbed due to sufficient cash
reserve balances.
Revenue projections for the 2017-18 General Fund adopted budget reflected a growth of 3.9%
over the prior year’s final budget. Property taxes are expected to continue to grow modestly
due to the completion of housing tracks in the Rosedale Community and home sales in new
construction areas throughout the City. However, the projected growth in revenues is mainly
attributable to one-time revenues related to various commercial property sales and one-time
revenues for underpayment of Landfill fees.
General Fund expenditures, including transfers out, debt service and capital outlay, for the
2017-18 adopted budget were higher than the 2016-17 final budget by 6.2%. The increase reflects
higher costs for: Los Angeles County fire service contractual obligation; CalPERS retirement
costs due to the restructuring of funding unfunded liabilities; and a one-time special assessment
from the City’s former insurance provider.
Rising retirement costs, such as pension and retiree health care, are ongoing concerns for the
City. In the prior year, the City successfully negotiated contracts with six of its seven
bargaining units, where all units agreed to pay their full 7.0% or 9.0% of the employer’s portion
of PERS contributions. In 2017-18, the City was able to negotiate the same terms for its
City of Azusa
Management’s Discussion and Analysis
June 30, 2017
18
seventh bargaining unit. Continued negotiations with employee bargaining groups will further
address solutions to the pension and retiree health care liabilities. Additionally, the City is
examining ways to expand its revenue base in order to fund the anticipated increased costs in
the future.
Dissolution of redevelopment agencies throughout the State also continues to impact the City.
The goal to develop properties owned by the former redevelopment agency is moving forward
and has generated additional revenues through property sale proceeds, repayment of Successor
Agency loans as reinstated by the Department of Finance, and increased property and sales tax
revenues. These revenue enhancements will help in addressing additional costs in the long
term. Staff will continue to strive to maintain essential services for the Community while being
prudent with its budget and monitoring 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.
BASIC
FINANCIAL STATEMENTS
19
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20
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
21
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22
Statement of Net Position
June 30, 2017
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 27,574,274 45,116,819$ 72,691,093$
Restricted assets:
Cash with fiscal agent 4,035,952 6,486,566 10,522,518
Cash held for rate stabilization - 10,235,542 10,235,542
Receivables:
Accounts, net 1,636,082 10,053,057 11,689,139
Taxes 2,303,720 - 2,303,720
Notes and loans 67,966 46,312 114,278
Accrued interest 92,716 115,323 208,039
Prepaid costs 212,166 57,210 269,376
Inventories 145,178 1,739,958 1,885,136
Total current assets 36,068,054 73,850,787 109,918,841
Noncurrent assets:
Internal balances (4,935,154) 4,935,154 -
Due from Successor Agency 9,201,622 2,616,012 11,817,634
Land held for resale 5,226,735 - 5,226,735
Capital assets:
Non-depreciable 3,681,603 3,266,857 6,948,460
Depreciable, net 32,016,395 112,095,468 144,111,863
Total capital assets 35,697,998 115,362,325 151,060,323
Total noncurrent assets 45,191,201 122,913,491 168,104,692
TOTAL ASSETS 81,259,255 196,764,278 278,023,533
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt - 1,591,905 1,591,905
Deferred outflows related to pension 13,772,555 3,301,796 17,074,351
TOTAL DEFERRED OUTFLOWS OF RESOURCES 13,772,555 4,893,701 18,666,256
LIABILITIES
Current liabilities:
Accounts payable 1,312,383 5,003,427 6,315,810
Accrued liabilities 1,756,332 19,031 1,775,363
Accrued interest 100,000 1,232,885 1,332,885
Unearned revenue 1,712,562 - 1,712,562
Deposits payable 22,370 3,412,265 3,434,635
Due to other governments 3,767 23,286 27,053
Compensated absences - due within one year 997,859 952,417 1,950,276
Claims and judgements - due within one year 1,000,000 - 1,000,000
Bonds and notes payable - due within one year 1,565,000 3,105,000 4,670,000
Total current liabilities 8,470,273 13,748,311 22,218,584
Noncurrent liabilities:
Due to Successor Agency 8,208,833 - 8,208,833
Total OPEB liability 37,053,449 1,950,181 39,003,630
Net pension liabilities 50,842,999 15,497,027 66,340,026
Compensated absences - due in more than one year 2,906,675 343,436 3,250,111
Claims and judgements - due in more than one year 2,232,622 - 2,232,622
Bonds and note payable - due in more than one year 5,003,030 62,924,433 67,927,463
Total noncurrent liabilities 106,247,608 80,715,077 186,962,685
TOTAL LIABILITIES 114,717,881 94,463,388 209,181,269
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 2,518,440 907,644 3,426,084
NET POSITION
Net investment in capital assets 33,818,379 50,924,797 84,743,176
Restricted for:
Community development projects 6,302,707 - 6,302,707
Public safety 1,175,116 - 1,175,116
Capital projects 3,293,833 - 3,293,833
Debt service 491,069 6,486,566 6,977,635
Rate stabilization - 10,235,542 10,235,542
Total restricted 11,262,725 16,722,108 27,984,833
Unrestricted (67,285,615) 38,640,042 (28,645,573)
TOTAL NET POSITION (22,204,511)$ 106,286,947$ 84,082,436$
See accompanying Notes to Basic Financial Statements.
Primary Government
City of Azusa
23
City of Azusa
Statement of Activities
For the year ended June 30, 2017
Operating Capital
Charges for Grants and Grants and
Functions / Programs Expenses Services Contributions Contributions Total
Primary Government:
Governmental activities:
General government 11,183,394$ 4,822,316$ 190,379$ -$ 5,012,695$
Public safety 24,610,769 774,218 553,978 - 1,328,196
Community development 3,170,213 3,094,335 533,666 - 3,628,001
Parks and recreation 4,365,600 487,842 216,794 - 704,636
Public works 4,404,636 833,440 2,794,742 935,622 4,563,804
Interest on long-term debt (unallocated) 361,493 - - - -
Total governmental activities 48,096,105 10,012,151 4,289,559 935,622 15,237,332
Business-type activities:
Water 20,511,527 20,785,465 - - 20,785,465
Light 39,464,774 41,404,427 - - 41,404,427
Sewer/Wastewater 2,220,602 2,750,999 - - 2,750,999
Refuse Contract 3,533,695 3,697,476 667,619 - 4,365,095
Total business-type activities 65,730,598 68,638,367 667,619 - 69,305,986
Total primary government 113,826,703$ 78,650,518$ 4,957,178$ 935,622$ 84,543,318$
General Revenues and Transfers:
Taxes:
Property taxes
Transient occupancy tax
Sales taxes
Franchise taxes
Business license tax
Utility users tax
Other taxes
Total taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
See accompanying Notes to Basic Financial Statements.
Program Revenues
24
Governmental Business-Type
Activities Activities Total
(6,170,699)$ -$ (6,170,699)$
(23,282,573) - (23,282,573)
457,788 - 457,788
(3,660,964) - (3,660,964)
159,168 - 159,168
(361,493) - (361,493)
(32,858,773) - (32,858,773)
- 273,938 273,938
- 1,939,653 1,939,653
- 530,397 530,397
- 831,400 831,400
- 3,575,388 3,575,388
(32,858,773)$ 3,575,388$ (29,283,385)$
10,719,463 - 10,719,463
366,579 - 366,579
5,516,848 - 5,516,848
6,893,264 - 6,893,264
2,238,439 - 2,238,439
3,329,293 3,329,293
1,702,902 - 1,702,902
30,766,788 - 30,766,788
460,691 512,838 973,529
1,504,953 - 1,504,953
1,739,277 (1,739,277) -
34,471,709 (1,226,439) 33,245,270
1,612,936 2,348,949 3,961,885
(23,817,447) 103,937,998 80,120,551
(22,204,511)$ 106,286,947$ 84,082,436$
and Changes in Net position
Net (Expense) Revenue
25
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26
FUND
FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
27
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28
GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund
General Fund is the general operating fund of the City. This fund accounts for all financial resources and
activities not required to be accounted for in other funds.
Grant and Seizure Special Revenue Fund
To account for various federal, state, and local grants which the City receives.
Non-Major Governmental Funds
To account for other governmental programs funded by restricted or committed monies, and also to
account for debt service and capital project expenditures.
29
City of Azusa
Balance Sheet
Governmental Funds
June 30, 2017
Special
Revenue Funds
Non-Major Total
General Grants and Governmental Governmental
Fund Seizure Fund Funds Funds
ASSETS
Pooled cash and investments 12,588,823$ 2,604,007$ 10,545,758$ 25,738,588$
Receivables:
Accounts 947,720 223,514 339,752 1,510,986
Taxes 2,280,098 12,943 10,679 2,303,720
Notes and loans 7,275 - 59,605 66,880
Accrued interest 67,200 - 21,382 88,582
Prepaid costs 58,313 2,891 3,074 64,278
Due from other funds 603,611 - - 603,611
Inventories 145,178 - - 145,178
Land held for resale 5,226,735 - - 5,226,735
Restricted assets:
Cash and investments with fiscal agents 38,239 - 3,997,713 4,035,952
Advances to Successor Agency 9,201,622 - - 9,201,622
Total assets 31,164,814 2,843,355 14,977,963 48,986,132
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 391,523 74,701 303,886 770,110
Accrued liabilities 1,510,465 6,544 243,115 1,760,124
Unearned revenues - 1,433,612 278,950 1,712,562
Deposits payable 10,000 - 12,370 22,370
Due to other governments 3,767 - - 3,767
Due to other funds - - 603,611 603,611
Advances from other funds 4,185,154 - 750,000 4,935,154
Total liabilities 6,100,909 1,514,857 2,191,932 9,807,698
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - 136,212 116,407 252,619
Total deferred inflow of resources - 136,212 116,407 252,619
FUND BALANCES
Nonspendable:
Inventories 145,178 - - 145,178
Prepaid costs 58,313 2,891 3,074 64,278
Land held for resale 5,226,735 - - 5,226,735
Notes and loans 7,275 - - 7,275
Advances to Successor Agency 9,201,622 - - 9,201,622
Restricted for:
Community development projects - 674,902 5,627,805 6,302,707
Public safety - 206,357 968,759 1,175,116
Capital projects - 728,329 6,078,915 6,807,244
Debt service - - 491,069 491,069
Committed for:
Employee benefits - - - -
Unassigned 10,424,782 (420,193) (499,998) 9,504,591
Total fund balances 25,063,905 1,192,286 12,669,624 38,925,815
Total liabilities, deferred inflows
of resources, and fund balances 31,164,814$ 2,843,355$ 14,977,963$ 48,986,132$
See accompanying Notes to Basic Financial Statements.
30
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Total Fund Balances - Total Governmental Funds 38,925,815$
Capital assets used in governmental activities were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet. Except for the internal
service funds reported below, the capital assets were adjusted as follows:
Government-
Wide Statement
of Net Position
Internal Service
Funds
- Non-depreciable 3,681,603 - 3,681,603
- Depreciable, net 32,016,395 305,668 31,710,727
Total capital assets 35,697,998 305,668 35,392,330
In the Government-Wide Financial Statements, certain differences between actuarial
estimates and actual results are deferred and amortized over a period of time, however
these differences do not impact the Governmental Funds Balance Sheet
Government-
Wide Statement
of Net Position
Internal Service
Funds
Deferred outflow of resources - pension 9,658,140 (548,807)
Deferred inflow of resources - pension (2,518,440) 140,393 6,731,286
Employer contributions for pension were recorded as expenditures in the governmental
funds. However in the Government-Wide Financial Statements, these contributions are
deferred 4,114,415
Interest payable on long-term debt did not require current financial resources. Therefore,
interest payable was not reported as a liability in Governmental Funds Balance Sheet.(100,000)
Deferred inflows of resources recorded in the Fund Financial Statements resulting from
activities in which revenues were earned but funds were not available are reclassified as
revenues in the Government-Wide Financial Statements.252,619
Internal service funds were used by management to charge the costs of certain activities, such
as insurance, to individual funds. The assets and liabilities of the internal service funds were
included in governmental activities in the Government-Wide Statement of Net Position. (3,537,609)
Long-term liabilities were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds Balance Sheet.
Government-
Wide Statement
of Net Position
Internal Service
Funds
- Compensated absences - due within one year (997,859) 91,326 (906,533)
- Claims and judgements - due within one year (1,000,000) 1,000,000 -
- Bonds and notes payable - due within one year (1,565,000) - (1,565,000)
- Due to Successor Agency (8,208,833)- (8,208,833)
- Total OPEB liability (37,053,449)- (37,053,449)
- Net pension liabilities (50,842,999)2,412,350 (48,430,649)
- Compensated absences - due in more than one year (2,906,675)90,802 (2,815,873)
- Claims and judgements - due in more than one year (2,232,622)2,232,622 -
- Bonds and notes payable - due in more than one year (5,003,030)- (5,003,030)
Total long-term liabilities (109,810,467) 5,827,100 (103,983,367) Net Position of Governmental Activities (22,204,511)$
See accompanying Notes to Basic Financial Statements.
June 30, 2017
Amounts reported for governmental activities in the Statement of Net Position were different
because:
City of Azusa
31
City of Azusa
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2017
Special
Revenue Funds
Non-Major Total
General Grants and Governmental Governmental
Fund Seizure Fund Funds Funds
REVENUES:
Taxes 32,293,121$ 46,979$ 2,209,519$ 34,549,619$
Assessments 1,941,549 - - 1,941,549
Licenses and permits 1,107,350 - 60,455 1,167,805
Intergovernmental 326,990 4,180,708 1,809,984 6,317,682
Charges for services 1,806,403 74,328 1,894,429 3,775,160
Use of money and property 704,737 12,251 273,988 990,976
Fines and forfeitures 1,068,510 - - 1,068,510
Contributions 2,936 3,474 72,426 78,836
Miscellaneous 1,507,462 56,479 - 1,563,941
Total revenues 40,759,058 4,374,219 6,320,801 51,454,078
EXPENDITURES:
Current:
General government 9,051,646 89,966 1,777,828 10,919,440
Public safety 17,545,591 409,360 4,605,336 22,560,287
Community development 1,834,905 58,867 1,076,793 2,970,565
Parks and recreation 3,496,630 - 419,620 3,916,250
Public works 807,170 40,229 3,438,619 4,286,018
Capital outlay 682,841 133,061 312,834 1,128,736
Debt service:
Principal retirement 1,065,000 - 355,000 1,420,000
Interest and fiscal charges 183,800 - 221,592 405,392
Total expenditures 34,667,583 731,483 12,207,622 47,606,688
REVENUES OVER (UNDER) EXPENDITURES 6,091,475 3,642,736 (5,886,821) 3,847,390
OTHER FINANCING SOURCES (USES):
Transfers in 1,530,690 - 6,321,720 7,852,410
Transfers out (5,780,533) - (332,600) (6,113,133)
Proceeds from sale of capital assets 4,307 - - 4,307
Total other financing sources (uses)(4,245,536) - 5,989,120 1,743,584
Net change in fund balances 1,845,939 3,642,736 102,299 5,590,974
FUND BALANCES:
Beginning of year, as restated 23,217,966 (2,450,450) 12,567,325 33,334,841
End of year 25,063,905$ 1,192,286$ 12,669,624$ 38,925,815$
See accompanying Notes to Basic Financial Statements.
32
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes
in Fund Balances to the Government-Wide Statement of Activities
For the year ended June 30, 2017
Net Change in Fund Balances - Total Governmental Funds 5,590,974$
Governmental funds reported additions of capital assets as capital outlay and program expenditures.
However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over
their estimated useful lives as depreciation expense. This was the amount of capital assets purchased in
the current period.2,337,584
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities
and Changes in Net Position, but they did not require the use of current financial resources. Therefore,
depreciation expense was not reported as expenditures in governmental funds.(1,691,811)
Pension expense does not require the use of current financial resources, and therefore is not reported as
expenditures in goverrnmental funds.(3,407,260)
Employer contributions for pension were recorded as expenditures in the governmental funds.
However in the Government-Wide Financial Statements, these contributions are deferred 4,114,415
Revenues that have not met the revenue recognition criteria in the Fund Financial Statements are
recognized as revenue in the Government-Wide Statement of Activities.(3,484,314)
Long-term debt premium and discount was recorded as an other financing source or (use) in the
governmental funds, but the payment was treated as an increase (decrease) in long-term liabilities and
will be amortized over the life of the bonds in the Government-Wide Statement of Net Position 21,798
OPEB expense does not require the use of current financial resources, and therefore is not reported as
expenditures in governmental funds.(2,010,764)
Accrued vacation payable was an expenditure in governmental funds, but payoff of accrued leave time
decreased liabilities in the Government-Wide Statement of Net Position.(118,023)
Repayment of debt principal was an expenditure in governmental funds, but the repayment reduced
long-term liabilities in the Government-Wide Statement of Net Position. 1,420,000
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, but
they did not require the use of current financial resources. Therefore, interest expense was not reported
as expenditures in governmental funds. The following amount represented the change in accrued
interest from the prior year.22,101
Internal service funds were used by management to charge the costs of certain activities to individual
funds. The net revenue of the internal service funds was reported with governmental activities.(1,181,764)
Change in Net Position of Governmental Activities 1,612,936$
See accompanying Notes to Basic Financial Statements.-
Amounts reported for governmental activities in the Statement of Activities were different because:
City of Azusa
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34
PROPRIETARY FUND FINANCIAL STATEMENTS
Water Fund
To account for the costs of labor and material used in the maintenance, construction, and consumption of
water services within the City's water service area.
Light Fund
To account for the costs of labor and materials used in the maintenance, construction, and consumption of
electric services throughout the City.
Non-Major Enterprise Funds
To account for the costs of labor and materials used in the maintenance, construction, and consumption of
sewer and refuse services throughout the City.
Internal Service Funds
To account for the financing of goods or services provided by one deparment or agency to other
departments or agencies of the City and to other governmental units, on a cost-reimbursement basis.
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36
City of Azusa
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2017
Governmental
Non-Major Total Activities -
Water Light Enterprise Enterprise Internal Service
Fund Fund Funds Funds Funds
ASSETS
Current:
Cash and investments 27,099,458$ 12,611,595$ 4,072,336$ 43,783,389$ 3,169,116$
Receivables:
Accounts 4,124,107 4,833,256 849,664 9,807,027 371,126
Notes and loans 3,905 40,000 878 44,783 2,615
Accrued interest - - 10,140 10,140 109,317
Prepaid costs 5,225 51,604 178 57,007 148,091
Inventories - 1,739,958 - 1,739,958 -
Restricted cash with fiscal agent 3,030,994 1,994,564 1,461,008 6,486,566 -
Restricted cash held for rate stabilization - 10,235,542 - 10,235,542 -
Total current assets 34,263,689 31,506,519 6,394,204 72,164,412 3,800,265
Noncurrent:
Advances to Successor Agency 2,616,012 - - 2,616,012 -
Advances to other funds 4,054,154 881,000 - 4,935,154 -
Capital assets - net of accumulated depreciation 76,905,110 28,091,250 9,937,258 114,933,618 734,375
Total noncurrent assets 83,575,276 28,972,250 9,937,258 122,484,784 734,375
Total assets 117,838,965 60,478,769 16,331,462 194,649,196 4,534,640
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,276,332 315,573 - 1,591,905 -
Deferred pension related items 1,108,441 862,032 341,074 2,311,547 1,539,056
Total deferred outflows of resources 2,384,773 1,177,605 341,074 3,903,452 1,539,056
LIABILITIES
Current:
Accounts payable 2,736,555 1,304,742 687,412 4,728,709 816,991
Accrued liabilities 849 9,005 3,595 13,449 1,790
Accrued interest 1,084,966 90,899 57,020 1,232,885 -
Deposits payable 906,845 2,505,420 - 3,412,265 -
Due to other governments 11,673 11,613 - 23,286 -
Compensated absences - due within one year 344,265 309,941 60,382 714,588 329,155
Claims and judgements - due within one year - - - - 1,000,000
Bonds and notes payable - due within one year 1,940,000 780,000 385,000 3,105,000 -
Total current liabilities 7,025,153 5,011,620 1,193,409 13,230,182 2,147,936
Noncurrent:
Compensated absences - due in more than one year 48,514 263,149 - 311,663 122,575
Bonds and notes payable - due in more than one year 54,069,640 5,249,793 3,605,000 62,924,433 -
Claims and judgements - due in more than one year - - - - 2,232,622
Total OPEB liability 780,072 390,037 - 1,170,109 780,072
Net pension liability 5,054,340 4,295,656 1,414,858 10,764,854 7,144,523
Total noncurent liabilities 59,952,566 10,198,635 5,019,858 75,171,059 10,279,792
Total liabilities 66,977,719 15,210,255 6,213,267 88,401,241 12,427,728
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 299,463 245,800 87,181 632,444 415,593
Total deferred inflows of resources 299,463 245,800 87,181 632,444 415,593
NET POSITION
Net investment in capital assets 22,171,802 22,377,030 5,947,258 50,496,090 734,375
Restricted for debt service 3,030,994 1,994,564 1,461,008 6,486,566 -
Restricted for rate stabilization - 10,235,542 - 10,235,542 -
Unrestricted 27,743,760 11,593,183 2,963,822 42,300,765 (7,504,000)
Total net position 52,946,556$ 46,200,319$ 10,372,088$ 109,518,963$ (6,769,625)$
Reconciliation of net position to the Statement of Net Position
Net position per Statement of Net Position - Proprietary Funds 109,518,963$
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds' activities related to the enterprise funds (3,141,657)
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (90,359)
Net position per Statement of Net Position 106,286,947$
See accompanying Notes to Basic Financial Statements.
Business-Type Activities - Enterprise Funds
37
City of Azusa
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the year ended June 30, 2017
Non-Major Total Internal
Water Light Enterprise Enterprise Service
Fund Fund Funds Funds Funds
OPERATING REVENUES:
Sales and service charges 20,377,190$ 40,937,581$ 6,448,475$ 67,763,246$ 12,076,217$
Interdepartamental charges 385,876 393,457 - 779,333 -
Miscellaneous 10,399 73,389 - 83,788 58
Lease revenue 12,000 - - 12,000 -
Total operating revenues 20,785,465 41,404,427 6,448,475 68,638,367 12,076,275
OPERATING EXPENSES:
Administration and general 7,447,854 7,392,945 915,747 15,756,546 9,892,575
Source of supply 937,524 23,411,006 - 24,348,530 27,454
Pumping 13,671 - - 13,671 -
Transmission/collection 1,473,228 3,623,981 - 5,097,209 -
Treatment 337,261 - 646,016 983,277 -
Refuse collection - - 3,566,846 3,566,846 -
Cost of sales and services 4,233,662 47,559 - 4,281,221 -
Claims expense - - - - 2,791,907
Depreciation expense 3,762,278 1,306,058 496,328 5,564,664 212,762
Total operating expenses 18,205,478 35,781,549 5,624,937 59,611,964 12,924,698
OPERATING INCOME (LOSS)2,579,987 5,622,878 823,538 9,026,403 (848,423)
NONOPERATING REVENUES (EXPENSES):
Taxes - - 667,619 667,619 -
Interest revenue 238,057 243,461 31,320 512,838 12,014
Interest expense (2,010,060) (187,631) (138,855) (2,336,546) -
Special franchise fees (363,046) (3,694,889) (56,157) (4,114,092) -
Loss on disposal of capital assets - - - - (20,344)
Gain on disposal of capital assets 2,055 4,288 - 6,343 650
Total nonoperating revenues (expenses)(2,132,994) (3,634,771) 503,927 (5,263,838) (7,680)
INCOME (LOSS) BEFORE TRANSFERS 446,993 1,988,107 1,327,465 3,762,565 (856,103)
Transfer in - - - - 132,335
Transfer out (190,000) (208,837) (924,420) (1,323,257) (548,355)
Change in net position 256,993 1,779,270 403,045 2,439,308 (1,272,123)
Net position:
Beginning of year, as restated 52,689,563 44,421,049 9,969,043 107,079,655 (5,497,502)
End of year 52,946,556$ 46,200,319$ 10,372,088$ 109,518,963$ (6,769,625)$
See accompanying Notes to Basic Financial Statements.
Business-Type Activities - Enterprise Funds
38
City of Azusa
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2017
Governmental
Non-Major Total Activities -
Water Light Enterprise Enterprise Internal Service
Fund Fund Funds Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 19,391,141$ 40,509,876$ 6,380,819$ 66,281,836$ 12,411,083$
Cash received from/(paid to) interfund service provided 385,876 393,457 - 779,333 -
Cash paid to suppliers for goods and services (10,873,710) (30,900,326) (4,194,014) (45,968,050) (8,018,160)
Cash paid to employees for services (2,897,834) (3,334,898) (913,394) (7,146,126) (4,120,286)
Net cash provided by (used in) operating activities 6,005,473 6,668,109 1,273,411 13,946,993 272,637
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:- -
Cash transfers out (190,000) (208,837) (924,420) (1,323,257) (548,355)
Cash transfers in - - - - 132,335
Repayment received from other funds 1,819,248 - - 1,819,248 -
Net cash provided by noncapital financing activities 1,629,248 (208,837) (924,420) 495,991 (416,020)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (757,210) (573,489) - (1,330,699) (27,457)
Principal paid on capital debt (1,885,000) (650,000) (375,000) (2,910,000) -
Interest paid on capital debt (2,206,854) (200,974) (144,685) (2,552,513) -
Special franchise fees paid (363,046) (3,694,889) (56,157) (4,114,092) -
Repayment made for advances (30,340) 25,000 (5,340) -
Taxes - - 667,619 667,619 -
Proceeds from sale of capital assets 2,055 4,288 - 6,343 650
Net cash provided by (used in) capital and related financing activities (5,240,395) (5,090,064) 91,777 (10,238,682) (26,807)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 238,057 243,461 22,989 504,507 (73,379)
Net cash provided by (used in) investing activities 238,057 243,461 22,989 504,507 (73,379)
Net increase (decrease) in cash and cash equivalents 2,632,383 1,612,669 463,757 4,708,809 (243,569)
CASH AND CASH EQUIVALENTS:
Beginning of year 27,498,069 23,229,032 5,069,587 55,796,688 3,412,685
End of year 30,130,452$ 24,841,701$ 5,533,344$ 60,505,497$ 3,169,116$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 27,099,458$ 12,611,595$ 4,072,336$ 43,783,389 3,169,116$
Cash with fiscal agent 3,030,994 1,994,564 1,461,008 6,486,566 -
Cash held for rate stabilization - 10,235,542 - 10,235,542 -
Total 30,130,452$ 24,841,701$ 5,533,344$ 60,505,497$ 3,169,116$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) 2,579,987$ 5,622,878$ 823,538$ 9,026,403$ (848,423)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 3,762,278 1,306,058 496,328 5,564,664 212,762
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable (1,030,663) (629,659) (67,656) (1,727,978) 334,808
(Increase) decrease in inventories - 86,785 - 86,785 -
(Increase) decrease in prepaid expense 252 (41,036) (178) (40,962) (56,799)
(Increase) decrease in deferred pension related outflows (681,012) (380,749) (258,497) (1,320,258) (904,319)
Increase (decrease) in accounts payable 761,453 341,394 111,015 1,213,862 236,006
Increase (decrease) in accrued liabilities (134,809) (148,508) (31,398) (314,715) (702,587)
Increase (decrease) in deposits payable 22,215 128,565 - 150,780 -
Increase (decrease) in due to other governments 1,601 11,613 - 13,214 -
Increase (decrease) in claims and judgements - - - - 915,481
Increase (decrease) in compensated absences 31,327 33,015 4,255 68,597 53,199
Increase (decrease) in total OPEB liability 42,331 21,167 - 63,498 42,331
Increase (decrease) in net pension liability 839,466 591,324 281,981 1,712,771 1,144,235
Increase (decrease) in deferred pension related inflows (188,953) (274,738) (85,977) (549,668) (154,057)
Total adjustments 3,425,486 1,045,231 449,873 4,920,590 1,121,060
Net cash provided by (used in) by operating activities 6,005,473$ 6,668,109$ 1,273,411$ 13,946,993$ 272,637$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:
Amortization of premiums (233,314)$ (13,298)$ -$ (246,612)$ -$
Amortization of deferred charge on refunding 67,414$ 18,563$ -$ 85,977$ -$
See accompanying Notes to Basic Financial Statements.
Business-Type Activities - Enterprise Funds
39
FIDUCIARY FUND FINANCIAL STATEMENTS
Resources held and administered by the City when acting in a fiduciary capacity for other organizations or
governments are accounted for in fiduciary funds. The activities of these funds are excluded from the
government-wide financial statements. The City's reports activity in the following fiduciary funds:
RDA Successor Agency Private Purpose Trust Funds
To account for property taxes that would have been redevelopment property tax increment had the
Redevelopment Agency not been dissolved. The property taxes are distributed semi-annually by the
County Auditor-Controller's Office and are used to pay enforceable obligations and Successor Agency
administrative costs. This fund also accounts for all non-housing assets transferred from the dissolved
Redevelopment Agency.
Agency Fund
To account for assets held by the City as trustee or agent for individuals, private organizations, and other
governmental agencies.
40
City of Azusa
Statement of Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2017
Private Purpose
Trust Fund
RDA
Agency Successor
Fund Agency Fund
ASSETS
Pooled cash and investments 8,922,391$ 3,561,791$
Receivables:
Accounts 27,405 -
Taxes 105,649 -
Notes and loans - 1,140,604
Accrued interest - 115
Advances to City - 8,208,832
Land held for resale - 20,591,288
Restricted:
Cash and investments with fiscal agents 4,170,102 354,690
Capital assets:
Capital assets, not being depreciated - 410,420
Capital assets, net of accumulated depreciation - 1,230,771
Total assets 13,225,547$ 35,498,511
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 3,056,221
Total deferred outflows of resources - 3,056,221
LIABILITIES
Accounts payable 215,008$ 451,608$
Accrued liabilities 6,073 -
Accrued interest - 835,006
Deposits payable 13,003,125 -
Due to other governments 1,341 2,500
Long-term liabilities:
Due in one year - 1,705,000
Due in more than one year - 45,429,322
Due to City of Azusa - 11,817,634
Total liabilities 13,225,547$ 60,241,070
NET POSITION
Held in trust for other purposes (21,686,338)
Total net position (21,686,338)$
See accompanying Notes to Basic Financial Statements.
41
City of Azusa
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2017
Private-Purpose
Trust Fund
RDA Successor
Agency Fund
ADDITIONS:
Taxes 2,229,989$
Interest and change in fair value of investments 3,694
Total additions 2,233,683
DEDUCTIONS:
Administration expenses 24,982
Contractual services 80,967
Interest expense 2,024,791
Depreciation expense 129,152
Loss on sale of assets 2,811,833
Contributions to other governments 3,552,414
Total deductions 8,624,139
Change in net position (6,390,456)
Net position:
Beginning of year (15,295,882)
End of year (21,686,338)$
See accompanying Notes to Basic Financial Statements.
42
43
NOTES TO BASIC
FINANCIAL STATEMENTS
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
44
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Azusa, California (City) have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The more significant of the City’s accounting policies are
described below.
A. Financial Reporting Entity
The City of Azusa (City) was incorporated as a general law city in September 29, 1898. The City
operates under the Council-Manager form of government and provides the following services: public
safety, light, sewer/wastewater, water, recreation, public improvements, planning and zoning, building
inspections, and general administration services.
These basic financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate entities
are, in substance, part of the City’s operations and data from these units are combined with data of the
City. All of the City’s component units are considered to be blended component units, although legally
separate entities, are, in substance, part of the City’s operation and so data from these are reported with
interfund data of the City. The blended component unit has a June 30 year-end. The following entity is
reported as a blended component unit:
Azusa Public Financing Authority (Authority) was established solely 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 (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 by the Authority because it has no activity to report.
The Authority is financially interdependent and provides financial benefit/burden to the City.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows
of resources, liabilities, fund equity, revenues and expenditures or expenses. These funds are
established for the purpose of carrying out specific activities or certain objectives in accordance with
specific regulations, restrictions or limitations. Governmental resources are allocated to and accounted
for in individual funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
45
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement
of Activities. These statements present summaries of Governmental and Business-Type Activities for
the City accompanied by a total column.
These financial statements are presented on an “economic resources” measurement focus and the
accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets,
as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of
Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which the liabilities are incurred.
Certain types of transactions reported as program revenues for the City are reported in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All
internal balances in the Statement of Net Position have been eliminated except those representing
balances between the governmental activities and the business-type activities, which are presented as
internal balances and eliminated in the total primary government column. In the Statement of
Activities, internal fund transactions have been eliminated, except for interdepartmental service charges
and those transactions between governmental and business-type activities. The following interfund
activities have been eliminated:
Due to/from other funds
Transfers in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and
Interpretations currently in effect.
Government Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net
position as presented in these statements to the net position presented in the government-wide financial
statements. The City has presented all major funds that meet specific qualifications.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
46
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government Fund Financial Statements, Continued
All governmental funds are accounted for on a spending or “current financial resources” measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in net current assets. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available
to finance expenditures of the current period.
The City reports the following funds as major governmental funds of the City.
General Fund accounts for resources traditionally associated with governmental activities that are not
required legally or by sound financial management to be accounted for in another fund.
Grants and Seizure Fund accounts for various federal, state, and local grants which the City receives.
The City reports the following funds as non-major governmental funds of the City.
Special Revenue Funds accounts for revenues which are restricted for specific purposes.
Capital Project Funds accounts for financial resources to be used for the acquisition or construction of
major capital improvement as outlined in the City’s Capital Improvement Program.
Debt Service Funds account for the accumulation of resources and payment of long-term debt.
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 considered 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 judgements, 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 measureable and available only when cash is received by the government.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
47
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government Fund Financial Statements, Continued
Expenditures of the Governmental Funds are classified by function. Functional classifications are
defined as follows:
General Government includes legislative activities which have a primary objective of providing legal
and policy guidelines for the City. Also included in this classification are those activities which
provide management or support services across more than one functional area, including Library
Services.
Public Safety includes those activities which involve the protection of people and property.
Community Development includes those activities which involve the enhancing of the general quality
of life.
Parks and Recreation includes those activities which involve community park maintenance and
recreational activities within the community.
Public Works includes those activities which involve the maintenance and improvement of City
streets and roads.
Debt Service includes those activities that account for the payment of long-term debt principal,
interest and fiscal charges.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is
provided.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues,
Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.
A column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government-
Wide Financial Statements.
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual
basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included
on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net
Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual
basis of accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which a liability is incurred.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
48
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements, Continued
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses
are those expenses that are essential to the primary operations of the fund. All other expenses are
reported as non-operating expenses.
The City reports the following funds as major proprietary funds of the City.
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.
Light Fund accounts for the costs of labor and materials used in the maintenance, construction and
consumption of electric services throughout the City.
Internal service fund balances and activities have been combined with governmental activities in the
Government-Wide Financial Statements. These funds account for consumer services, self insurance,
central services, equipment replacement, and I.T. services.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of
Changes in Fiduciary Net Position. The City reports two types of fiduciary funds which are a private-
purpose trust fund and an Agency Fund. Private-purpose trust funds account for resources of all other
trust arrangements in which principal and income benefit individuals, private organizations, or other
governments (i.e. unclaimed property/escheat property). Agency funds account for assets held by the
City as trustee or agent for individuals, private organizations, and other governmental units. Fiduciary
funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary
funds:
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund - accounts for the
accumulation of resources to be used for payments at appropriate amounts and times in the future.
Agency Funds – accounts for various deposits made by individuals, private organizations, or other
governments.
The financial activities of the funds are excluded from the Government-wide financial statements, but are
presented in the separate Fiduciary Fund financial statements.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
49
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Cash, Cash Equivalents and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance
in the pooled cash account is available to meet current operating requirements. Cash in excess of
current requirements is invested in various interest-bearing accounts and other investments for varying
terms.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No.
3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
• Interest Rate Risk
• Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end, and other disclosures.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, highly liquid market investments with maturities of one year or less at time
of purchase are stated at amortized cost. All other investments are stated at fair value. The City
categorizes the fair value measurements of its investments based on the hierarchy established by
generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on
the valuation inputs used to measure an asset’s fair value: 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 does not have any investments that are measured using Level
1 and 3 inputs.
The City participates in an investment pool managed by the State of California entitled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and
Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the
State of California collateralizing these investments. In addition, these Structured Notes and Asset-
Backed Securities are subject to market risk as to the change in interest rates.
Cash equivalents are considered amounts in demand deposits and short-term investments with a
maturity date within three months of the date acquired by the City and are presented as “Cash and
Investments” in the accompanying Basic Financial Statements.
For the purpose of the statement of cash flows, the City considers and cash equivalents because
investments meet the criteria for cash equivalents defined above. all pooled cash and investments
(consisting of cash and investments and restricted cash and investments) held by the City as cash and
cash equivalents because the pool is used essentially as a demand deposit account from the standpoint
of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal
agent and restricted cash and investments held by fiscal agent) as cash.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
50
D. Restricted Cash and Investments
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.
E. Inventories, Prepaid Costs, and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventory costs are
recorded as an expense when used. Certain payments to vendors reflect costs applicable to future
accounting periods and are recorded as prepaid items in both government-wide and fund financial
statements. Land purchased for resale is capitalized as inventory at acquisition costs or net realizable
value, if lower.
F. 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 acquisition 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 the useful life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of the 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:
Land Improvements 20 years
Buildings and Improvements 30– 50 years
Machinery and Equipment 8 – 30 years
Automobiles and Trucks 5 – 15 years
Infrastructure 30–65 years
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
51
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
G. Interest Payable
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the
liability is incurred for governmental fund types and proprietary fund types.
In the Fund Financial Statements, proprietary fund types recognize the interest payable when the
liability is incurred.
H. Unearned revenue
Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical
transactions recorded as unearned revenues in the Government-Wide Financial Statements are prepaid
charges for services.
I. 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.
J. Long-Term Debt
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.
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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
52
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K. Property Taxes
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 or
expected to be collected soon 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
takes 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.
L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet 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.
In addition to liabilities, the statement of net position or balance sheet 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.
M. Net Position
Net Position is the excess of all the City's assets and deferred outflow of resources over all its liabilities
and deferred inflows of resources, regardless of fund. Net Position is divided into three captions under
GASB Statement 34. These captions apply only to Net Position, which is determined only at the
Government-wide and proprietary funds level, and are described below:
Net investment in capital assets, describes the portion of Net Position which is represented by the
current net book value of the City's capital assets, less the outstanding balance of any debt issued to
finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other restrictions
which the City cannot unilaterally alter. These principally include developer fees received for use on
capital projects, debt service requirements, and other restrictions imposed by laws and regulations.
Unrestricted describes the portion of Net Position which is not restricted to use.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
53
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
N. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally
represent a fund's cash and receivables, less its liabilities.
The City's fund balances are classified in accordance with Governmental Accounting Standards Board
Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which
requires the City to classify its fund balances based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. The City Council, through
resolution, is able to restrict funds for specific purposes, thus creating assigned balances. Each category
in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable
resources even though they are a component of assets. Fund balances required to be maintained
intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids,
notes receivable, and land held for resale are included. However, if proceeds realized from the sale
or collection of nonspendable assets are restricted, committed or assigned, then nonspendable
amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws,
regulations, or enabling legislation which requires the resources to be used only for a specific
purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with
spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council (Resolution)
which may be altered only by formal action by Resolution of the City Council. Encumbrances and
nonspendable amounts subject to Council commitments are included along with spendable
resources. 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 balances are amounts constrained by the City's intent to be used for a specific
purpose, but 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. This category includes encumbrances when
applicable.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
54
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
O. 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.
P. 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.
Q. Use of Estimates
The accompanying basic financial statements have been prepared on the modified accrual basis of
accounting in accordance with generally accepted accounting principles. This requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date
of the financial statements and the reported amounts of revenues and expenditures during the reporting
period. Actual results could differ from those estimates.
R. 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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
55
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
S. Pension
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 and the PARS Retirement
Enhancement Plan (Plans) and additions to/deductions from the Plans’ fiduciary net position have been
determined on the same basis as they are reported by CalPERS and PARS. 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.
T. Other Postemployment Benefits Other Than Pensions (OPEB)
For purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City
of Azusa Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net
positon have been determined on the same basis as they are reported by the Plan. For this purpose, the
Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
Investments are reported at fair value, except for money market investments, and participating interest-
earning investment contracts that have a maturity at the time of purchase of one year or less, which are
reported at cost.
U. New Pronouncements
In 2017, the City adopted new accounting standards in order to conform to the following Governmental
Accounting Standards Board Statements:
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans– The objective of this Statement is to improve the usefulness of information
about postemployment benefits other than pensions (other postemployment benefits or
OPEB) included in the general purpose external financial reports of state and local
governmental OPEB plans for making decisions and assessing accountability. This
Statement results from a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for all postemployment benefits (pensions and OPEB)
with regard to providing decision-useful information, supporting assessments of
accountability and interperiod equity, and creating additional transparency. The
requirements of this statement were not applicable to the City.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions – The objective of this Statement is to improve accounting and financial
reporting by state and local governments for postemployment benefits other than pensions
other postemployment benefits or OPEB. It also improves information provided by state
and local governmental employers about financial support for OPEB that is provided by
other entities. The City recorded restatements and accounted for the net OPEB liability and
deferred outflows and inflows of resources related to the City’s OPEB plan as part of
implementation of this accounting pronouncement.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
56
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
U. New Pronouncements, Continued
GASB Statement No. 77, Tax Abatement Disclosure- This statement addresses the financial
statements prepared by state and local governments in conformity with generally accepted
accounting principles to provide citizens and taxpayers, legislative and oversight bodies,
municipal bond analysts, and others with information they need to evaluate the financial
health of governments, make decisions, and assess accountability. This information is
intended, among other things, to assist these users of financial statements in assessing (1)
whether a government’s current-year revenues were sufficient to pay for current-year
services (known as interperiod equity), (2) whether a government complied with finance-
related legal and contractual obligations, (3) where a government’s financial resources come
from and how it uses them, and (4) a government’s financial position and economic
condition and how they have changed over time. There was no impact on net position as a
result of implementation of this statement.
GASB Statement No. 78, Pension Provided through Certain Multiple-Employer Defined Benefit
Pension Plans– The objective of this statement is to address a practice issue regarding the
scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions.
This issue is associated with pensions provided through certain multiple-employer defined
benefit pension plans and to state or local governmental employers whose employees are
provided with such pensions. The requirements of this statement were not applicable to the
City.
GASB Statement No. 80, Blending Requirements for Certain Component Units – An Amendment
of GASB Statement No. 14 - The objective of this statement is to improve financial reporting
by clarifying the financial statement presentation requirements for certain component units.
This Statement amends the blending requirements established in paragraph 53 of Statement
No. 14, The Financial Reporting Entity, as amended. This statement amends the blending
requirements for the financial statement presentation of component units of all state and
local governments. The additional criterion requires blending of a component unit
incorporated as a not-for-profit corporation in which the primary government is the sole
corporate member. The additional criterion does not apply to component units included in
the financial reporting entity pursuant to the provisions of Statement No. 39, Determining
Whether Certain Organizations Are Component Units. The requirements of this statement were
not applicable to the City.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
57
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
U. New Pronouncements, Continued
GASB Statement No. 82, Pension Issues – An Amendment of GASB Statement No. 67, No. 68, and
No. 73 - This statement addresses certain issues that had been raised with respect to
Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial
Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB 67 and 68. Specifically, this statement addresses issues regarding (1) the
presentation of payroll-related measures in the required supplementary information, (2) the
selection of assumptions and the treatment of deviations from the guidance in an Actuarial
Standard of Practice for financial reporting purposes, and (3) the classification of payments
made by employers to satisfy employee (plan member) contribution requirements. The City
updated covered payroll information in the required supplementary information as part of
implementation of this accounting standard.
2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
The City maintains a cash and investments pool for all funds. Certain restricted funds that are held and
invested by independent outside custodians through contractual agreements are not pooled. These
restricted funds include cash and investments held by trustees.
The following is a summary of cash and investments at June 30, 2017:
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 27,574,274$ 45,116,819$ 12,484,182$ 85,175,275$
Cash with fiscal agent:
Cash with fiscal agent for debt service 4,035,952 6,486,566 4,524,792 15,047,310
Cash held for rate stabilization - 10,235,542 - 10,235,542
Total cash with fiscal agent 4,035,952 16,722,108 4,524,792 25,282,852
Total cash and investments 31,610,226$ 61,838,927$ 17,008,974$ 110,458,127$
Government-Wide Statement of Net Position
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
58
2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments, Continued
Cash and investments as of June 30, 2017 consist of the following:
Cash on hand 6,884$
Deposits with financial institution 8,252,735
Total cash on hand and deposits 8,259,619
Local Agency Investment Funds 38,609,326
Government Obligations:
Federal Farm Credit Bank 10,907,230
Federal Home Loan Bank 3,940,980
Federal Home Loan Mortgage Corp. 9,288,424
Federal National Mortgage Association 4,939,980
Certificates of Deposit 6,429,198
Corporate Bonds 996,380
Money market mutual funds 1,804,138
Total investments 76,915,656
Total City Treasury 85,175,275
Cash with fiscal agent 25,282,852
Total cash and investments 110,458,127$
B. Deposits
The carrying amount of the City’s cash deposit was $8,252,735 at June 30, 2017. Bank balances before
reconciling items were a positive amount of $8,559,111 at June 30, 2017. Cash deposits are fully insured
up to $250,000 by the Federal Deposit Insurance Corporation, the remaining amount was collateralized
with securities held by the pledging financial institutions in the City’s name.
The California Government Code (Section 53655) requires California banks and savings and loan
associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that
collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral
superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the
City's name.
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California
law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a
value of 150% of the City’s total cash deposits.
The City follows the practice of pooling cash and investments of all funds, except for funds required to
be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled
cash and investments is allocated to the various funds based on the period-end cash and investments
balances. Interest income from cash and investments with fiscal agents is credited directly to the related
fund.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
59
2. CASH AND INVESTMENTS, Continued
C. Investments
Authorized Investments by the City
Under provision of the City’s investment policy, and in accordance with the California Government
Code, the following investments are authorized:
U.S. Treasury Obligations (bills, notes and bonds)
U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations
Mutual Funds
Commercial Paper
Repurchase Agreements
Certificates of Deposit
Negotiable Certificates of Deposit
Passbook Savings Accounts
Medium Term Corporate Notes
Bank Money Market Accounts
Local Agency Investment Fund (State Pool)
Authorized Investments by the Debt Agreements
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements
rather than the general provisions of the California Government Code or the City’s investment policy.
Investments in Local Agency Investment Fund (LAIF)
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. The City’s investments with LAIF at June 30, 2017, include a portion of the pool funds
invested in Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes – are debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or have embedded forwards or options.
Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers
to receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2017, the City had $38,609,326 invested in LAIF, which had invested 2.89% of the pool
investment funds in Structured Notes and Asset-Backed Securities as compared to 2.81% in the previous
year. The LAIF fair value factor of 0.998940671 was used to calculate the fair value of the investments in
LAIF.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
60
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures
Interest Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates.
Information about the sensitivity of the fair values of the City's investments to market interest rate
fluctuations is provided by the following table that shows the distribution to the City's investments by
maturity:
Investment Type 12 months or less 13 to 24 months 25 to 60 months Total
Local Agency Investment Fund 38,609,326$ -$ -$ 38,609,326$
Federal Farm Credit Bank 1,997,550 993,120 7,916,560 10,907,230
Federal Home Loan Bank - - 3,940,980 3,940,980
Federal Home Loan Mortgage Corp. - 1,384,524 7,903,900 9,288,424
Federal National Mortgage Assoic. 997,390 - 3,942,590 4,939,980
Certificates of Deposit 344,756 490,642 5,593,800 6,429,198
Corporate Bonds 996,380 - - 996,380
Money Market Mutual Funds 1,804,138 - - 1,804,138
Total Investments 44,749,540$ 2,868,286$ 29,297,830$ 76,915,656$
Investment Maturities (in years)
Credit Risk: Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. 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, 2017, the
City’s investments in Federal Agency securities consisted of investments with Federal Farm Credit
Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National
Mortgage Association. At June 30, 2017, all Federal Agency Securities were rated AA+ by Standard and
Poor’s. All securities were investment grade and were legal under State and City law. As of June 30,
2017, the City’s investments in external investment pools and money market mutual funds were
unrated.
Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, the City will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. Under California Government
Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible
securities posted as collateral with its Agent having a fair value of 105% to 150% of the City's cash on
deposit. All of the City's deposits are either insured by the Federal Depository Insurance Corporation
(FDIC) or collateralized with pledged securities held in the trust department of the financial institutions
in the City's name.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
61
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
Concentration Risk: The City’s investment policy imposes restrictions 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, 2017, the City had the following investments in a single issuer that comprised more than
5% of total investments:
Reported
Issuer Amount
Federal Farm Credit Bank 10,907,230$ 14.15%
Federal National Mortgage Association 9,288,424 12.05%
Federal Home Loan Bank 4,939,980 6.41%
Federal Home Loan Mortgage Corp. 3,940,980 5.11%
25,135,634$ 37.72%
Percentage
E. Investment Valuation
Investments (except for money market accounts, time deposits, and commercial paper) are measured at
fair value on a recurring basis. Recurring fair value measurements are those that Governmental
Accounting Standards Board (GASB) Statements require or permit in the statement of net position at
the end of each reporting period. Fair value measurements are categorized based on the valuation
inputs used to measure an asset’s fair value: 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. Investment fair value measurements at June 30, 2017 are described on the
following.
Investments included in restricted cash and investments included money market accounts and
guaranteed investment contracts are not subject to fair value measurement.
Not Subject
Investment Type Total to Disclosure Level 1 Level 2 Level 3
U.S. Government Agency Obligations 29,076,614$ -$ -$ 29,076,614$ -$
Corporate bonds 996,380 - - 996,380 -
Certificates of deposit 6,429,198 6,429,198 - - -
Money market funds 1,804,138 1,804,138 - - -
Local Agency Investment Fund 38,609,326 38,609,326 - - -
Total investments 76,915,656$ 46,842,662$ -$ 30,072,994$ -$
Fair Value Measurement Using
U.S. government agency obligation and corporate bonds categorized as Level 2 are valued based on
quoted prices for similar instruments in active markets, quoted prices for identical or similar
instruments in markets that are not active and model-based valuations for which all significant
assumptions are observable or can be corroborated by observable market data.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
62
3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
At June 30, 2017, the City had the following due to/from other funds:
Due From Non-Major
Governmental Funds
Due To General Fund 603,611$
Total 603,611$
The amount due to the General Fund from non-major governmental funds represents reclassified
temporary negative cash balances. Current interfund balances arise in the normal course of operations
and are expected to be repaid shortly after the end of the fiscal year.
B. Advance To/From Other Funds
At June 30, 2017, the City had the following advance to/from other funds:
Funds Water Fund
Light Fund Total
Advances From Other Funds
General 4,054,154$ 131,000$ 4,185,154$
Non-Major Governmental Funds - 750,000 750,000
Total 4,054,154$ 881,000$ 4,935,154$
Advances To Other Funds
The Light Fund advanced $750,000 to the Capital Projects Fund for various electric related capital
projects. The interfund loan payables in the General Fund to the Water Fund and Light Fund were
formalized in fiscal year 2015 with City adopted interfund loan agreements with interest accrual
requirements and loan repayment requirements. The General Fund had previously informally
borrowed monies from these funds during the economic downturn; no repayment is required on the
loan until the General Fund accumulates $3.5 million in cash reserves. The City expects to begin
repayment of the interfund loan starting fiscal year 2018.
C. Transfers
At June 30, 2017, the City had the following transfers in/out which arise in the normal course of
operations.
Non-Major
Governmental Internal
General Funds Service Funds Total
General Fund -$ 5,780,533$ -$ 5,780,533$
Non-major Govtl Funds 332,600 - - 332,600
Water Fund - 190,000 - 190,000
Light Fund - 208,837 - 208,837
Non-major Enterprise Funds 792,085 - 132,335 924,420
Internal Service Funds 406,005 142,350 - 548,355
Total 1,530,690$ 6,321,720$ 132,335$ 7,984,745$
Transfers Out
Transfers In
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
63
3. INTERFUND TRANSACTIONS
C. Transfers, Continued
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. Transfers made from the Water and Light
Funds included providing funding for employee benefits. Transfers from Non-Major Enterprise Funds
consisted mainly of payment of franchise fees payable to the General Fund.
4. CAPITAL ASSETS
A. Government-Wide Financial Statements
At June 30, 2017, the City’s capital assets consisted of the following:
Governmental Business-Type
Activities Activities Total
Non-depreciable assets:
Land 3,562,016$ 2,988,973$ 6,550,989$
Construction in progress 119,587 277,884 397,471
Total non-depreciable assets 3,681,603 3,266,857 6,948,460
Depreciable assets:
Land improvements 4,423,252 1,212,318 5,635,570
Building and improvements 12,901,980 22,635,773 35,537,753
Machinery and equipment 8,331,493 14,583,484 22,914,977
Automotive equipment 3,179,245 3,918,367 7,097,612
Infrastructure 57,049,209 158,486,221 215,535,430
85,885,179 200,836,163 286,721,342
Less accumulated depreciation:
Land improvements 3,336,636 868,700 4,205,336
Building and improvements 6,529,590 10,720,140 17,249,730
Machinery and equipment 7,232,353 11,954,489 19,186,842
Automotive equipment 2,653,554 3,618,471 6,272,025
Infrastructure 34,116,651 61,578,895 95,695,546
Total accumulated depreciation 53,868,784 88,740,695 142,609,479
Total depreciable assets 32,016,395 112,095,468 144,111,863
Total capital assets 35,697,998$ 115,362,325$ 151,060,323$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
64
5. CAPITAL ASSETS, Continued
A. Government-Wide Financial Statements, Continued
The following is a summary of changes in the capital assets for the governmental activities during the
fiscal year:
Balance
June 30, 2016 Balance
(as restated)*Additions Retirements Reclassification June 30, 2017
Governmental activities
Non-depreciable assets:
Land 1,819,536$ 1,742,480$ -$ -$ 3,562,016$
Construction in progress 1,728,657 92,461 - (1,701,531) 119,587
Total non-depreciable assets 3,548,193 1,834,941 - (1,701,531) 3,681,603
Depreciable assets:
Land improvements 4,423,252 - - - 4,423,252
Building and improvements 12,896,529 5,451 - - 12,901,980
Machinery and equipment 8,106,486 225,007 - - 8,331,493
Automotive equipment 3,206,785 70,683 (98,223) - 3,179,245
Infrastructure 55,146,176 201,502 - 1,701,531 57,049,209
83,779,228 502,643 (98,223) 1,701,531 85,885,179
Less accumulated depreciation:
Land improvements 3,214,466 122,170 - - 3,336,636
Building and improvements 6,225,627 303,963 - - 6,529,590
Machinery and equipment 6,978,263 254,090 - - 7,232,353
Automotive equipment 2,570,753 160,680 (77,879) - 2,653,554
Infrastructure 33,167,669 948,982 - - 34,116,651
Total accumulated depreciation 52,156,778 1,789,885 (77,879) - 53,868,784
Total depreciable assets, net 31,622,450 (1,287,242) (20,344) 1,701,531 32,016,395
Governmental activities capital assets, net 35,170,643$ 547,699$ (20,344)$ -$ 35,697,998$
*The City reclassified capital assets within categories as of June 30, 2016, total capital asset balance remained unchanged.
Depreciation expense by program for capital assets for the year ended June 30, 2017 was as follows:
General government 103,366$
Public safety 114,992
Community development 16,404
Parks and recreation 284,455
Public works 1,172,594
Internal service funds 98,074
Total Governmental Activities 1,789,885$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
65
5. CAPITAL ASSETS, Continued
A. Government-Wide Financial Statements, Continued
The following is a summary of changes in the capital assets for business-type activities during the fiscal
year:
Balance
June 30, 2016 Balance
(as restated) Additions Retirements Reclassification June 30, 2017
Non-depreciable assets:
Land 2,988,973$ -$ -$ -$ 2,988,973$
Construction in progress 19,331 273,466 (14,913) 277,884
Total non-depreciable assets 3,008,304 273,466 (14,913) - 3,266,857
Depreciable assets:
Land improvements 1,212,318 1,212,318
Building and improvements 22,635,773 22,635,773
Machinery and equipment 14,078,178 505,306 - 14,583,484
Automotive equipment 3,879,512 71,616 (32,761) 3,918,367
Infrastructure 157,978,453 507,768 158,486,221
Total depreciable assets 199,784,234 1,084,690 (32,761) - 200,836,163
Less accumulated depreciation:
Land improvements 830,273 38,427 868,700
Building and improvements 10,225,337 494,803 10,720,140
Machinery and equipment 11,476,977 477,512 - 11,954,489
Automotive equipment 3,546,865 104,367 (32,761) - 3,618,471
Infrastructure 57,014,653 4,564,242 61,578,895
Total accumulated depreciation 83,094,105 5,679,351 (32,761) - 88,740,695
Total depreciable assets, net 116,690,129 (4,594,661) - - 112,095,468
Business-type activity capital assets, net 119,698,433$ (4,321,195)$ (14,913)$ -$ 115,362,325$
Depreciation expense for the year ended June 30, 2017 was as follows:
Water 3,762,278$
Light 1,306,058
Sewer/Wastewater 496,328
Internal service funds 114,687
Total Business-Type Activities 5,679,351$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
66
6. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of long-term debt transactions including amortization for the year ended
June 30, 2017:
Due in
Balance Balance Due Within More Than
June 30, 2016 Additions Deletion June 30, 2017 One Year One Year
2008 Taxable Pension
Funding Bonds 2,240,000$ -$ (1,065,000)$ 1,175,000$ 1,175,000$ -$
2016 TRIP Installment Sale 3,570,000 - (80,000) 3,490,000 105,000 3,385,000
PFA 2003 Certificates
of Participation 2,020,000 - (275,000) 1,745,000 285,000 1,460,000
Unamortized Premiums 189,155 - (23,928) 165,227 - 165,227
Unamortized Discounts (9,327) 2,130 - (7,197) - (7,197)
Subtotal 8,009,828 2,130 (1,443,928) 6,568,030 1,565,000 5,003,030
Note payable - Successor Agency 8,208,833 - - 8,208,833 - 8,208,833
Total long-term debt 16,398,489$ 4,260$ (1,467,856)$ 14,934,893$ 1,565,000$ 13,369,893$
2008 Taxable Pension Funding Bond
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 $1,175,000 on January 1 each year from 2010 through 2018. The annual
principal requirements to amortize the 2008 Pension Funding Bonds outstanding as of June 30, 2017, are as
follows:
Year Ending June 30, Principal Interest Total
2018 1,175,000$ 76,375$ 1,251,375$
Total 1,175,000$ 76,375$ 1,251,375$
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, 2017, was $3,490,000.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
67
6. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding certificates of participation as of June 30, 2017,
including interest, are as follows:
Year Ending June 30, Principal Interest Total
2018 105,000$ 124,494$ 229,494$
2019 105,000 121,344 226,344
2020 110,000 118,194 228,194
2021 115,000 113,794 228,794
2022 120,000 109,194 229,194
2023-2027 680,000 461,959 1,141,959
2028-2032 840,000 306,269 1,146,269
2033-2037 980,000 165,519 1,145,519
2038-2039 435,000 21,288 456,288
Total 3,490,000$ 1,542,055$ 5,032,055$
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, 2017, was $1,745,000.
The annual requirements to repay the outstanding indebtedness at June 30, including interest, are
shown in the schedule below:
Year Ending June 30, Principal Interest Total
2018 285,000$ 69,590$ 354,590$
2019 300,000 57,337 357,337
2020 315,000 44,071 359,071
2021 845,000 18,590 863,590
Total 1,745,000$ 189,588$ 1,934,588$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
68
6. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Note Payable – Successor Agency
In 2011, the City called repayment of the advances made to the former Redevelopment Agency. The former
Redevelopment Agency approved in March 2011 to transfer property to the City as repayment of the loans.
The property was transferred at cost, which exceeded the loan agreement balance; therefore; an advance to
the Successor Agency was created in the amount of $8,032,773. In FY 2012, the advance increased by the
Price Club triple flip sales tax allocation owed to the Successor Agency in the amount of $176,060.
Outstanding balance at June 30, 2017 is $8,208,833.
B. Business-Type Activities
The City’s debt issues and transactions of business-type activities are summarized below and discussed
in detail thereafter.
Balance Balance Due Within More Than
June 30, 2016 Additions Deletion June 30, 2017 One Year One Year
2012 Water Refunding Bonds, Series A 6,645,000$ -$ (735,000)$ 5,910,000$ 755,000$ 5,155,000$
2015 Water System Refunding Revenue Bonds 47,740,000 - (1,150,000) 46,590,000 1,185,000 45,405,000
2003 Certificates of Participation, Series C 780,000 (650,000) 130,000 130,000 -
2012 Electric Refunding Revenue Bonds, Series B 5,820,000 - - 5,820,000 650,000 5,170,000
2011 Sewer Installment, Series A 900,000 (170,000) 730,000 175,000 555,000
2011 Sewer Installment, Series B 3,465,000 - (205,000) 3,260,000 210,000 3,050,000
Unamortized Premiums 3,836,045 - (246,612) 3,589,433 - 3,589,433
Total long-term debt 69,186,045$ -$ (3,156,612)$ 66,029,433$ 3,105,000$ 62,924,433$
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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and
January 1.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
69
6. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2012 Water Refunding Revenue Bonds, Continued
The annual requirements to amortize the outstanding bonds as of June 30, 2017, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2018 755,000$ 238,575$ 993,575$
2019 780,000 211,650 991,650
2020 810,000 182,975 992,975
2021 835,000 153,200 988,200
2022 865,000 114,875 979,875
2023-2024 1,865,000 94,375 1,959,375
Total 5,910,000$ 995,650$ 6,905,650$
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 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 $3,035,000. Interest ranges from 3.000% to 5.000%
and is payable semi-annually on July 1 and January 1.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
70
6. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2015 Water System Refunding Revenue Bonds, Continued
The annual requirements to amortize the outstanding bonds as of June 30, 2017, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2018 1,185,000$ 1,908,388$ 3,093,388$
2019 1,245,000 1,853,563 3,098,563
2020 1,310,000 1,789,688 3,099,688
2021 1,375,000 1,722,563 3,097,563
2022 1,445,000 1,652,063 3,097,063
2023-2027 8,420,000 7,068,938 15,488,938
2028-2032 10,330,000 5,155,156 15,485,156
2033-2037 12,525,000 2,957,838 15,482,838
2038-2040 8,755,000 534,500 9,289,500
Total 46,590,000$ 24,642,697$ 71,232,697$
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, 2017, was $780,000.
The annual requirements to amortize the outstanding certificates of participation as of June 30, 2017,
including interest, are as follows:
Year Ending June 30,Principal Interest Total
2018 130,000$ 3,621$ 133,621$
Total 130,000$ 3,621$ 133,621$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
71
6. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2012 Electric Refunding Revenue Bonds
On May 23, 2012, the City issued $5,820,000 of 2012 Electric System Refunding Revenue Bonds, Series B.
The proceeds were primarily used to advance refund all of the City’s obligations in connection with the
Financing Authority for Resource Efficiency of California Certificates of Participation, Series B. The
bonds are payable solely from the Electric net revenues, and the City is not obligated to pay them except
from the applicable Electric net revenues. Serial bonds mature in annual installments beginning on July
1, 2017 through July 1, 2023, in amounts ranging from $650,000 to $930,000. Interest ranges from 2.000%
to 5.000% and is payable semi-annually on July 1 and January 1.
Debt covenants require that the City maintain a reserve account equal $582,000. As of June 30, 2017, the
reserve requirement was fully funded.
The annual requirements to amortize the outstanding bonds as of June 30, 2017, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2018 650,000$ 169,069$ 819,069$
2019 795,000 150,644 945,644
2020 820,000 126,419 946,419
2021 845,000 99,331 944,331
2022 875,000 69,231 944,231
2023-2024 1,835,000 54,859 1,889,859
Total 5,820,000$ 669,553$ 6,489,553$
2011 Sewer Installment Agreement Series A and B
On November 29, 2011, the City of Azusa entered into an installment Sale Agreement with Capitol One
Public Funding, LLC totaling $5,630,000. The proceeds were used to defease the 1994 Sewer System
Certificates of Participation, which was used for improvements on the sewer system. The agreement
specified the installments consisted of $1,490,000 of Series A installments and $4,140,000 of Series B
installments.
The Series A installments have annual principal payments beginning on August 1, 2012 through August
1, 2020 ranging from $105,000 to $190,000. Interest rates on the Series A installments are 2.900%.
The Series B installments have annual principal payments beginning on August 1, 2012 through August
1, 2025 ranging from $120,000 to $505,000. Interest rates on the Series B installments are 3.600%.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
72
6. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2011 Sewer Installment Agreement Series A and B, Continued
The annual requirements to amortize the outstanding installment agreements as of June 30, 2017,
including interest are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total
2018 175,000$ 18,633$ 193,633$ 210,000$ 113,580$ 323,580$
2019 180,000 13,485 193,485 220,000 105,840 325,840
2020 185,000 8,193 193,193 230,000 97,740 327,740
2021 190,000 2,755 192,755 235,000 89,370 324,370
2022 - - - 440,000 77,220 517,220
2023-2026 - - - 1,925,000 141,570 2,066,570
Subtotal 730,000$ 43,066$ 773,066$ 3,260,000 625,320$ 3,885,320$
2011 Sewer Installment, Series A 2011 Sewer Installment, Series B
C. Debt without City Commitment
The City of Azusa has authorized the formation of the City of Azusa – Community Facilities District No.
2002-1 (Mountain Cove) and the City of Azusa – Community Facilities District No. 2005-1 (Rosedale)
Improvement Area No. 1, acting through its eligible landowner voters, and the issuance of bonds under
the public improvement act (Mello-Roos Community Facilities Act of 1982) of the State of California to
finance certain costs of acquisition and construction of certain water, sewer, reservoir, pump station and
bike trail improvements generally related to development within the Mountain Cove District, and to
finance eligible public facilities necessary to be owned and maintained by the City as well as public
facilities for the Azusa Unified School District, the Los Angeles Pasadena Metro Blue Line Construction
Authority, and the City of Glendora. The bonds are secured by annual special tax levies or liens placed
on the property within the respective districts.
The City of Azusa is not liable for repayment and acts only as an agent for the property owners in
collecting the special taxes or assessments, forwarding the collections to bondholders, and initiating
foreclosure proceedings when necessary. Accordingly, the special tax bonds are not reported as
liabilities in the City’s basic financial statements. As of June 30, 2017, the total outstanding balances of
the special tax bonds were $44,475,000.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
73
7. COMPENSATED ABSENCES
Compensated absences comprise unpaid vacation, unpaid compensatory leave balances, and the vested
portion of sick leave, which are accrued as earned. The City's liability for compensated absences is
recorded in various governmental funds or proprietary funds as appropriate. The liability for
compensated absences is determined annually. Compensated absences are reported in governmental
funds only if they have matured. For all governmental funds, amounts expected to be permanently
liquidated are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net
Position. Compensated absences are liquidated by the fund that has recorded the liability. The long-
term portion of governmental activities compensated absences is liquidated primarily by the General
Fund.
Employees accrue vacation, annual leave, earned time off, and holiday leave up to certain maximums,
based on the employee’s bargaining unit. Employees may elect to be paid a portion of these leaves at
various times according to the applicable Memorandum of Understanding. Sick leave may be
accumulated without limit.
The City accrues the liability for compensated leave as it is earned by employees. The amount of
compensated leaves payable outstanding was $5,200,387 as of June 30, 2017.
Due in
Balance Balance Due Within More Than
June 30, 2016 Additions Deletions June 30, 2017 One Year One Year
Governmental Activities
Compensated Leaves Payable 3,778,294$ 2,947,266$ (2,821,026)$ 3,904,534$ 997,859$ 2,906,675$
Business-Type Activities
Compensated Leaves Payable 1,182,274$ 988,332$ (874,753)$ 1,295,853$ 952,417$ 343,436$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
74
8. RETIREMENT 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) defined
contribution plan and the PARS Retirement Enhancement Plans defined benefit plans (AMMA, Executives,
IBEW, and SEIU). These plans are provided and administered by the Public Agency Retirement System
Alternate Retirement System Plan.
The following schedule provides a summary of deferred outflows of resources, liabilities, deferred inflows
of resources, and pension expense for the City’s pension plans.
Deferred Net Deferred
Outflows Related Pension Inflows Related Pension
to Pension Liability To Pension Expense
CalPERS Miscellaneous Agent Multiple Employer Plan 8,014,193$ 32,161,466$ 2,010,161$ 2,299,958$
CALPERS Cost Sharing Plan - Safety 8,831,203 29,713,239 1,233,049 3,986,624
PARS Agent Multiple Employer Plan - AMMA 119,030 1,064,946 138,122 142,591
PARS Agent Multiple Employer Plan - Executives 24,794 2,036,152 - 296,593
PARS Agent Multiple Employer Plan - IBEW 51,366 1,148,745 44,752 142,379
PARS Agent Multiple Employer Plan - SEIU 33,765 215,478 - 19,426
Total 17,074,351$ 66,340,026$ 3,426,084$ 6,887,571$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
75
8. RETIREMENT PLANS, Continued
A. CalPERS 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.
The cost sharing plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and
fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer
rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or
miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may
sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three safety
rate plans. Benefit provisions under the Plan are established by State statute and City ordinance.
CalPERS issues publicly available reports that include a full description of the pension plan regarding
benefit provisions, assumptions, and membership information that can be found on the CalPERS
website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and
death benefits to plan members who must be public employees and beneficiaries. Benefits are based on
years of credited service, equal to one year of full time employment. Members with five years of total
service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for non-
duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic
Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living
adjustments for each plan are applied as specified by the Public Employee’s Retirement Law.
The miscellaneous agent multiple employer plan’s provisions and benefits in effect at June 30, 2017 are
summarized as follows:
Classic PEPRA
Hire date Prior to January 1, 2013 January 1, 2013 and after
Benefit vesting schedule 5 years service 5 years service
Benefit payment Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as a % of annual salary 2.50% 2.0%
Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 17.512% 17.512%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
76
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Benefits Provided, Continued
The safety cost sharing plan rate plan’s provisions and benefits in effect at June 30, 2017 are summarized
as follows:
Classic Tier 2 PEPRA
Hire date
Prior to
October 15, 2012
October 15, 2012 to
December 31, 2012
January 1, 2013
and after
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payment Monthly for life Monthly for life Monthly for life
Retirement age 505057
Monthly benefits, as a % of annual salary 3.00% 2.00% 2.70%
Required employee contribution rates 9.00% 9.00% 12.25%
Required employer contribution rates 23.534% 21.481% 12.821%
Required UAL payment 1,181,914$ -$ -$
Employees Covered – As of the measurement date, the following employees were covered by the benefit
terms for the Miscellaneous Agent Multiple-Employer Plan:
Miscellaneous
Inactive employees or beneficiaries currently
receiving benefits 318
Inactive employees entitled to but not yet
receiving benefits 263
Active employees 222
Total 803
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers be determined on an actuarial basis, annually and
is effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are
determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is
the estimated amount necessary to finance the costs of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate of
employees.
For governmental activities, the General Fund has typically been used in prior years to liquidate
pension liabilities.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
77
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less
the pension plan's fiduciary net position.
For the Safety Plan, net pension liability is measured as the proportionate share of the net pension
liability. The net pension liability of each of the Plans is measured as of June 30, 2016, using an annual
actuarial valuation as of June 30, 2015 rolled forward to June 30, 2016 using standard update
procedures. The City’s proportion of the net pension liability (Safety Plan) 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 Plan as of the measurement dates June 30, 2015 and June 30, 2016 were as follows:
City Cost Sharing Plan
Proportion - June 30, 2015 0.33263%
Proportion - June 30, 2016 0.34338%
Change - Increase (Decrease) 0.01075%
A summary of principal assumptions and methods used to determine the net pension liability is shown
below.
Actuarial Assumptions - The total pension liabilities in the June 30, 2015 actuarial valuations were
determined using the following actuarial assumptions:
Miscellaneous Agent
Multiple Employer Plan
Safety Cost Sharing
Plan
Valuation Date June 30, 2015 June 30, 2015
Measurement Date June 30, 2016 June 30, 2016
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.65% 7.65%
Inflation 2.75% 2.75%
Salary Increases
Investment Rate of Return (1) 7.50% 7.50%
Mortality (2)
Post Retirement Benefit Increase
Entry-Age Normal Cost Method
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all
Funds
Contract COLA up to 2.75% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.75% thereafter
(1) Depending on age, service, and type of employment
(2) Net of pension plan administrative expenses
(3) The mortality table used was developed based on CalPERS' specific data. The
table incudes 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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
78
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Net Pension Liability, Continued
All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of an
actuarial experience study for the fiscal years 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.
Discount Rate - The discount rate used to measure the total pension liability was 7.65% for each Plan.
This rate includes investment expenses and inflation. 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 will be applied to all plans in the Public Employees
Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained
from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for
each fund. The expected rate of return was set by calculating the single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both
short-term and long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above, and rounded down to the nearest one quarter of one percent.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
79
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Net Pension Liability, Continued
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. These rates of return are net of administrative expenses.
New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10(a) Years 11+(b)
Global Equity 51.00% 5.25% 5.71%
Global Fixed Income 20.00% 0.99% 2.43%
Inflation Sensitive 6.00% 0.45% 3.36%
Private Equity 10.00% 6.83% 6.95%
Real Estate 10.00% 4.50% 5.13%
Infrastructure and Forestland 2.00% 5.60% 5.09%
Liquidity 1.00% -0.55% -1.05%
Total 100%
(a) An expected inflation of 2.5% used for this period.
(b) An expected inflation of 3.0% used for this period.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
80
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Changes in Net Pension Liability
The change in the Net Pension Liability for the Miscellaneous Plan is as follows:
Miscellaneous Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2015 $ 125,166,625 $ 99,880,362 $ 25,286,263
Changes in the year:
Service cost 2,295,028 - 2,295,028
Interest on the total pension liability 9,381,992 - 9,381,992
Differences between actual and expected
experience (892,890) - (892,890)
Changes in assumptions - -
Changes in benefit terms - - -
Plan to Plan Resource Movement - -
Contribution - employer - 2,381,498 (2,381,498)
Contribution - employee - 1,066,129 (1,066,129)
Net investment income - 522,172 (522,172)
Administrative expenses - (60,872) 60,872
Benefit payments , including refunds of
employee contributions (5,561,682) (5,561,682) -
Net changes 5,222,448 (1,652,755) 6,875,203
Balance at June 30, 2016 $ 130,389,073 $ 98,227,607 $ 32,161,466
Increase (Decrease)
For the measurement period ended June 30, 2016, the City contributed $4,789,674 for the Cost Sharing
Plan.
As of June 30, 2017, the City reported net pension liabilities for its proportionate share of the net pension
liability of the Cost Sharing Plan of $29,713,239.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
81
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Changes in Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the
net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that
is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease
Net Pension Liability $ 50,148,041 $ 45,021,346 95,169,387
Current Discount Rate
Net Pension Liability $ 32,161,466 $ 29,713,239 61,874,705
1% Increase
Net Pension Liability $ 17,353,117 $ 17,146,852 34,499,969
CalPERS Miscellaneous Agent
Multiple Employer Plan
CalPERS Safety Cost
Sharing Plan
Total CalPERS'
Plans
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2016, the City recognized pension expense of $2,299,958 for the
Miscellaneous Agent Multiple Employer Plan and $3,986,624 for the Safety Cost Sharing Plan.
At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following source for the Miscellaneous Agent Multiple Employer Plan:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 2,601,137$ -$
Differences between actual and expected
experience - (813,468)
Changes in assumptions - (1,196,693)
Net differences between projected and actual
earnings on plan investments 5,413,056 -
Total 8,014,193$ (2,010,161)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
82
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$2,601,137 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 ending June
30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Fiscal Year
Ending June 30:
2018 $ (833,509)
2019 363,325
2020 2,469,855
2021 1,403,224
At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following source for the Safety Cost Sharing Plan:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 2,711,578 $ -
Differences between actual and expected
experience - (189,837)
Changes in assumptions - (827,701)
Changes in employer's proportion 652,272 -
Differences between the employer's
contribution and the employer's proportionate
share of contributions 1,400,899 (215,511)
Net differences between projected and actual
earnings on plan investments 4,066,454 -
Total 8,831,203$ (1,233,049)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
83
8. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$2,724,002 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 ending June
30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Fiscal Year
Ending June 30:
2018 $ 704,014
2019 785,438
2020 2,388,507
2021 1,058,617
Payables to the Pension Plan
At June 30, 2017, the City reported no payables for outstanding amounts of contributions for both the
CalPERS Miscellaneous Agent Multiple-Employer Plan or the CalPERS Safety Cost Sharing Multiple-
Employer Plan.
B. PARS Retirement Enhancement Plans
Plan Descriptions
The plans provide 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 agent multiple-employer defined
benefit plan made up of California governmental agencies. PARS 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 City ordinance.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
84
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Benefits Provided
The PARS Retirement Enhancement Plans’ provisions and benefits in effect at June 30, 2017 are
summarized as follows:
AMMA Executive IBEW SEIU
Hire date
July 1, 2007
and after
July 1, 2006
and after
July 1, 2006
and after
July 1, 2006
and after
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service
Benefit payment Monthly for life Monthly for life Monthly for life Monthly for life
Retirement age 55555555
Monthly benefits, as a % of annual salary 0.50% 0.50% 0.50% 0.50%
Required employee contribution rates 2.50% 0.00% 2.00% 4.00%
Required employer contribution rates 9.97% 14.00% 5.44% 3.72%
Employees Covered – As of the June 30, 2017, the following employees were covered by the PARS
Retirement Enhancement Plans were as follows:
AMMA Executive IBEW SEIU
Inactive employees or beneficiaries currently
receiving benefits 4511 2
Inactive employees entitled to but not yet
receiving benefits 7312 6
Active employees 17 4 50 8
Total 28 12 73 16
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. Employer contribution rates may change if
plan contracts are amended. For the measurement period ended June 30, 2017 (the measurement date),
the employer and employee contribution rates were as follows:
AMMA Executive IBEW SEIU
Employer contribution rate 9.97% 14.00% 5.44% 3.72%
Employee contribution rate 2.50% 0.00% 2.00% 4.00%
For governmental activities, the General Fund has typically been used in prior years to liquidate
pension liabilities.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
85
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Net Pension Liability
The City’s net pension liabilities for the PARS Retirement Enhancement Plans are measured as the total
pension liability, less the pension plan's fiduciary net position.
A summary of principal assumptions and methods used to determine the net pension liability is shown
below.
Actuarial Assumptions - The total pension liabilities in the June 30, 2015 actuarial valuations were
determined using the following actuarial assumptions:
AMMA Executive IBEW SEIU
Valuation Date June 30, 2015 June 30, 2015 June 30, 2015 June 30, 2015
Measurement Date June 30, 2017 June 30, 2017 June 30, 2017 June 30, 2017
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.00% 7.00% 7.00% 7.00%
Inflation 2.75% 2.75% 2.75% 2.75%
Salary Increases
Investment Rate of Return 7.00% 7.00% 7.00% 7.00%
Mortality (1)
Post Retirement Benefit Increase 2.75% 2.75% 2.75% 2.75%
Entry-Age Normal Cost Method
Derived using CalPERS' Membership Data for all Funds
Varies by Entry Age and Service
Discount Rate - The plans’ fiduciary net positons were 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 for each plan.
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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
86
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Net Pension Liability, Continued
The following assumptions detail out long-term expected rate of return for each PARS Retirement
Enhancement Plan:
AMMA
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 4.06% 0.36% 0.35%
US Core Fixed Income Barclays Aggregate 36.77% 2.17% 2.04%
US Equity Market Russell 3000 42.32% 4.83% 3.57%
Foreign Developed Equity MSCI EAFE NR 11.31% 5.76% 4.15%
Emerging Markets Equity MSCI EM NR 3.94% 8.06% 4.84%
US REITs FTSE NAREIT Equity REIT 1.60% 5.04% 3.27%
Assumed Inflation - Mean 2.32% 2.30%
Assumed Inflation - Standard Deviation 1.85%1.85%
Portfolio Real Mean Return 3.91%3.41%
Portfolio Nominal Mean Return 6.22%5.78%
Portfolio Standard Deviation 9.85%
Long-Term Expected Rate of Return 7.00%
Executive
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 5.12% 0.36% 0.35%
US Core Fixed Income Barclays Aggregate 36.36% 2.17% 2.04%
US Equity Market Russell 3000 41.85% 4.83% 3.57%
Foreign Developed Equity MSCI EAFE NR 11.19% 5.76% 4.15%
Emerging Markets Equity MSCI EM NR 3.90% 8.06% 4.84%
US REITs FTSE NAREIT Equity REIT 1.58% 5.04% 3.27%
Assumed Inflation - Mean 2.32% 2.30%
Assumed Inflation - Standard Deviation 1.85% 1.85%
Portfolio Real Mean Return 3.87% 3.38%
Portfolio Nominal Mean Return 6.19% 5.76%
Portfolio Standard Deviation 9.75%
Long-Term Expected Rate of Return 7.00%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
87
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Net Pension Liability, Continued
IBEW
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 4.19% 0.36% 0.35%
US Core Fixed Income Barclays Aggregate 36.72% 2.17% 2.04%
US Equity Market Russell 3000 42.26% 4.83% 3.57%
Foreign Developed Equity MSCI EAFE NR 11.30% 5.76% 4.15%
Emerging Markets Equity MSCI EM NR 3.93% 8.06% 4.84%
US REITs FTSE NAREIT Equity REIT 1.59% 5.04% 3.27%
Assumed Inflation - Mean 2.32% 2.30%
Assumed Inflation - Standard Deviation 1.85% 1.85%
Portfolio Real Mean Return 3.90% 3.40%
Portfolio Nominal Mean Return 6.22% 5.78%
Portfolio Standard Deviation 9.84%
Long-Term Expected Rate of Return 7.00%
SEIU
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Mon Tbill 4.23% 0.36% 0.35%
US Core Fixed Income Barclays Aggregate 36.71% 2.17% 2.04%
US Equity Market Russell 3000 42.25% 4.83% 3.57%
Foreign Developed Equity MSCI EAFE NR 11.29% 5.76% 4.15%
Emerging Markets Equity MSCI EM NR 3.93% 8.06% 4.84%
US REITs FTSE NAREIT Equity REIT 1.59% 5.04% 3.27%
Assumed Inflation - Mean 2.32% 2.30%
Assumed Inflation - Standard Deviation 1.85% 1.85%
Portfolio Real Mean Return 3.90% 3.40%
Portfolio Nominal Mean Return 6.22% 5.78%
Portfolio Standard Deviation 9.84%
Long-Term Expected Rate of Return 7.00%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
88
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Changes in Net Pension Liability
The changes in the Net Pension Liabilities for the PARS Retirement Enhancement Plans are as follows:
AMMA Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2016 $ 3,271,390 $ 2,038,302 $ 1,233,088
Changes in the year:
Service cost 91,040 - 91,040
Interest on the total pension liability 232,756 - 232,756
Contribution - employer - 201,498 (201,498)
Contribution - employee - 48,741 (48,741)
Net investment income - 250,204 (250,204)
Administrative expenses - (8,505) 8,505
Benefit payments , including refunds of
employee contributions (75,963) (75,963) -
Net changes 247,833 415,975 (168,142)
Balance at June 30, 2017 $ 3,519,223 $ 2,454,277 $ 1,064,946
Increase (Decrease)
Executive Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2016 $ 3,012,837 $ 950,509 $ 2,062,328
Changes in the year:
Service cost - - -
Interest on the total pension liability 206,088 - 206,088
Contribution - employer - 124,997 (124,997)
Contribution - employee - - -
Net investment income - 112,249 (112,249)
Administrative expenses - (4,982) 4,982
Benefit payments , including refunds of
employee contributions (139,808) (139,808) -
Net changes 66,280 92,456 (26,176)
Balance at June 30, 2017 $ 3,079,117 $ 1,042,965 $ 2,036,152
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
89
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Changes in Net Pension Liability, Continued
IBEW Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2016 $ 3,150,445 $ 1,828,866 $ 1,321,579
Changes in the year:
Service cost 103,488 - 103,488
Interest on the total pension liability 223,883 - 223,883
Contribution - employer - 207,056 (207,056)
Contribution - employee - 76,124 (76,124)
Net investment income - 225,263 (225,263)
Administrative expenses - (8,238) 8,238
Benefit payments , including refunds of
employee contributions (113,110) (113,110) -
Net changes 214,261 387,095 (172,834)
Balance at June 30, 2017 $ 3,364,706 $ 2,215,961 $ 1,148,745
Increase (Decrease)
SEIU Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2016 $ 570,242 $ 318,444 $ 251,798
Changes in the year:
Service cost 16,140 - 16,140
Interest on the total pension liability 40,470 - 40,470
Contribution - employer - 26,555 (26,555)
Contribution - employee - 28,554 (28,554)
Net investment income - 39,629 (39,629)
Administrative expenses - (1,808) 1,808
Benefit payments , including refunds of
employee contributions (16,780) (16,780) -
Net changes 39,830 76,150 (36,320)
Balance at June 30, 2017 $ 610,072 $ 394,594 $ 215,478
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
90
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Changes in Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the
net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that
is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease - 6.00%
Net Pension Liability $ 1,508,564 $ 2,417,894 $ 1,602,076 $ 293,673 3,926,458$
Current Discount Rate - 7.00%
Net Pension Liability $ 1,064,946 $ 2,036,152 $ 1,148,745 $ 215,478 3,101,098$
1% Increase - 8.00%
Net Pension Liability $ 691,030 $ 1,718,645 $ 768,821 $ 150,471 2,409,675$
AMMA Executive Total PARS' PlansIBEW SEIU
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net
position is available in the separately issued PARS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2017, the City recognized pension expense for each PARS Retirement
Enhancement Plan as follows:
Pension
Expense
PARS Agent Multiple Employer Plan - AMMA 142,591$
PARS Agent Multiple Employer Plan - Executives 296,593
PARS Agent Multiple Employer Plan - IBEW 142,379
PARS Agent Multiple Employer Plan - SEIU 19,426
Total 600,989$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
91
8. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources for each of the PARS Retirement Enhancement Plans:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between actual and expected
experience -$ (138,122)$ -$ -$
Changes in assumptions 81,654 - - -
Net differences between projected and actual
earnings on plan investments 37,376 - 24,794 -
Total 119,030$ (138,122)$ 24,794$ -$
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between actual and expected
experience -$ (44,752)$ 23,168$ -$
Changes in assumptions 20,933 - 5,453 -
Net differences between projected and actual
earnings on plan investments 30,433 - 5,144 -
Total 51,366$ (44,752)$ 33,765$ -$
AMMA Executive
IBEW SEIU
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows for each PARS Retirement Enhancement
Plan:
Fiscal Year
Ending June 30: AMMA Executive IBEW SEIU
2018 $ 7,416 $ 14,255 $ 16,483 $ 13,110
2019 7,417 14,257 16,482 13,111
2020 (8,427) 5,560 2,809 10,761
2021 (25,498) (9,278) (22,665) (3,217)
2022 - - (4,331) -
Thereafter - - (2,164) -
Payables to the Pension Plan
At June 30, 2017, the City reported no payables for outstanding amounts of contributions for the PARS
Retirement Enhancement Plans.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
92
8. RETIREMENT PLANS, Continued
C. PARS Defined Contribution 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, 2017, 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, 2017, 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.
9. POST-EMPLOYMENT BENEFITS
A. Plan Description
The City administers a single-employer defined-benefit post-employment healthcare plan. Participants
are eligible for benefits upon Service or Disability Retirement. Benefits vary by hire date and
employment status and benefits continue to surviving spouses.
B. Benefits Provided
Benefits are dependent on bargaining unit and hire date. Participants may receive up to 100% of the
monthly single premium (ACEA, CAPP, SEIU, IBEW, APOA with 20 years of service) or 100% of the
monthly dual premium (Executives, APMA with 20 years of service).Participants between 10 to 20 years
of service may receive between 50% to 75% of the monthly single premium. Percentages vary by
bargaining unit.
Participants not meeting the above requirements who remain enrolled in a City plan receive the
PEMHCA minimum payment, currently $128 per month. Other benefit provisions apply.
C. Employees Covered by Benefit Terms
As of June 30, 2017, the following employees were covered by the benefit terms for the plan:
Inactive employees or beneficiaries
currently receiving benefits 164
Active employees 250
Total 414
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
93
9. POST-EMPLOYMENT BENEFITS, Continued
D. 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. The City pays benefits as they come due.
E. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2017, and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2016.
Actuarial Assumptions
The total OPEB liability in the June 30, 2016 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement date..
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 3.50%
Inflation 2.50%
Salary Increases
Investment Rate of Return 3.50%
Mortality
Healthcare cost trend rates: 7.00% in the first year, trending down to
3.94% over 57 years
Entry-Age Normal Cost Method
Derived using CalPERS' Membership Data
for all Funds
Varies by Entry Age and Service
Discount Rate
The discount rate used to measure the total OPEB liability was 3.50%. The City’s OPEB Plan is an
unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high quality 20-year
municipal bonds, as of the valuation date.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
94
9. POST-EMPLOYMENT BENEFITS, Continued
F. Changes in the Total OPEB Liability
Total OPEB Liability
Balance at June 30, 2016 $ 36,887,037
Changes in the year:
Service cost 1,705,253
Interest on the total pension liability 1,275,916
Contribution - employer (588,634)
Implicit rate subsidy fulfilled (275,942)
Net changes 2,116,593
Balance at June 30, 2017 $ 39,003,630
Sensitivity of the Total OPEB liability to Changes in the Discount Rate – The following presents the
total OPEB liability of the City for the Plan, calculated using the discount rate for the Plan, as well
as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-
percentage point lower or 1-percentage point higher than the current rate:
1% Decrease - 2.50%
Total OPEB liability 45,914,667$
Current Discount Rate - 3.50%
Total OPEB liability 39,003,630$
1% Increase - 4.50%
Total OPEB liability 33,496,189$
Sensitivity of the Total OPEB liability to Changes in the Healthcare Cost Trend Rate – The following
presents the total OPEB liability of the City for the Plan, calculated using the healthcare cost trend
rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using
a healthcare cost trend rate that is 1-percentage point lower or 1-percentage point higher than the
current rate:
1% Decrease - 6.00% Decreasing to 2.94%
Total OPEB liability 32,433,437$
Current Discount Rate - 7.00% Decreasing to 3.94%
Total OPEB liability 39,003,630$
1% Increase - 8.00% Decreasing to 4.94%
Total OPEB liability 47,548,659$
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2017, the City recognized pension expense of $2,981,169. As of June 30, 2017,
the City did not report any deferred outflows of resources or deferred inflows of resources related to
OPEB.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
95
10. RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Azusa became a member of the California Joint Powers Insurance Authority (Authority)
during the fiscal year. The Authority is composed of 116 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of
the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase
excess insurance or reinsurance, and to arrange for group purchased insurance for property and other
lines of coverage. The Authority began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of Directors. The Board operates
through a nine-member Executive Committee. The City has not had claims settlements exceeding
insurance coverage for each of the past three fiscal years.
B. Self-Insurance Programs of the Authority
Each member pays an annual contribution to cover estimated losses for the coverage period. The total
funding requirement for self-insurance programs is estimated using actuarial models and pre-funded
through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll)
and experience (claims) relative to other members of the risk-sharing pool. Additional information
regarding the cost allocation methodology is provided below.
Liability
In the liability program, claims are pooled separately between police and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000
to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the
outcome of cost allocation within the first and second loss layers.
For 2016-17, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to $20
million, and excess insurance to $50 million. The Authority’s reinsurance contracts are subject to the
following additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million
x/s $2 million layer, and (b) $3 million annual aggregate deductible in the $5 million x/s $10 million
layer. There is a third annual aggregate deductible in the amount of $2.5 million in the $5 million x/s
$5 million layer, however, it is fully covered under a separate policy and therefore, not retained by the
Authority.
The overall coverage limit for each member, including all layers of coverage, is $50 million per
occurrence. Costs of covered claim for subsidence losses have a sub-limit of $30 million per occurrence.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
96
10. RISK MANAGEMENT, Continued
B. Self-Insurance Programs of the Authority, Continued
Workers’ Compensation
The City of Azusa also participates in the workers’ compensation pool administered by the Authority.
In the workers’ compensation program, claims are pooled separately between public safety (police and
fire) and general government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The
first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a
percentage of the pool’s total incurred costs within the first layer. (3) The second of losses includes
incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the
pool’s total incurred costs within the second layer. (4) Incurred costs in excess from $100,000 to
statutory limits are distributed based on the outcome of cost allocation within the first and second loss
layers.
For 2016-17 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory
limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5
million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to
$10 million are pooled among members.
C. Independent Cities Risk Management Authority (ICRMA)
Prior to July 1, 2017, the City was a member of Independent Cities Risk Management Authority
(ICRMA) for general liability and worker’s compensation claims. The City retains responsibility for its
self-insured portion of claims incurred prior to July 1, 2016.
D. Claim Liability
The City’s claims activity is recorded in its internal service funds. Estimated liabilities are recorded
when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Claims that have been incurred but not reported (IBNRs) are also included in the liability estimates. A
summary of the changes in claims liabilities for the past three fiscal years follows.
Fiscal Year
Claims Claims and Claims
For the Years Payable Changes in Claims Payable Due Within
Ended June 30, July 1 Estimates Payments June 30 One Year
2015 2,356,493$ (419,136)$ (507,084)$ 1,430,273$ 1,430,273$
2016 1,430,273 2,890,352 (2,003,484) 2,317,141 2,317,141
2017 2,317,141 1,959,047 (1,043,566) 3,232,622 1,000,000
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
97
11. GRANT AND SEIZURE FUND
The Grants and Seizure special revenue fund include the following items in its fund balance:
Grants & Seizures (8,469)$
1% DIVA/PEG Cable Fees 180,766
Jack Williams Memorial 600
Grants & Seizures-Police 17
Asset Seizure Federal - Dept. of Justice 162,304
Asset Seizure County 26,150
Office of Traffic Safety 2,762
Asset Seizure Federal - Dept. of Treasury 754
Inmate Welfare Fund 3,322
OTS-STEP (15/16)11,048
JAG 2016 Grant (16,834)
STEP Grant (16/17)(11,048)
Healthier Azusa Grant 3,157
AQMD Tree Planting 4,306
Sr Cntr Cyn City Grant 137
Senior Restricted Donations 237,150
Public Library Grant 64,035
Library Restricted Donations 1,090
Broadband Grant (Lib)510
Family Place Grant 1,961
E-Rate Grant -
Book Clubs 467
Youth Programs 689
Summer Reading 3,481
Special Programs 75
Workforce Invest Act 15-16 (5,564)
ELC-Citizenship-WIA (1,545)
Inst of Museum & Library (21,362)
General Plan Surcharge 727,213
Pre-Disaster Mitigation (23,859)
Art in Public Place 25,652
Metro TOD Planning Grant (83,875)
AB29X Meters 86,607
Oil Block Grant 6,791
Beverage Container Recycling 44,332
Technology Grant 13,698
Safe Routes to Schools Grant (13,572)
Foothill Trans-BusStop (35,000)
CIP-Recreation Grants (165,556)
Rehab of Zacatecas Park 516
CIP-AZ Intermododal Transit (4,567)
SCAQMD-LED Bike Trail (26,051)
Total 1,192,286$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
98
12. SEGMENT 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, 2017, is as follows:
Assets:
Current assets $ 4,203,232
Restricted assets 1,461,008
Capital assets 9,937,258
Total assets 15,601,498
Deferred outflows of resources:
Deferred pension related items 341,074
Total deferred outflows of resources 341,074
Liabilities:
Current liabilities 609,330
Noncurrent liabilities 5,019,858
Total liabilities 5,629,188
Deferred inflows of resources
Deferred pension related items 87,181
Total deferred inflows of resources 87,181
Net position:
Net investment in capital assets 5,947,258
Restricted 1,461,008
Unrestricted 2,817,937
Total net position $ 10,226,203
Condensed Statement of Net Position
Sewer charges $ 2,750,999
Depreciation expense (496,328)
Other operating expenses (1,562,344)
Operating income 692,327
Nonoperating revenues(expenses):
Investment earnings 31,320
Interest expense (138,855)
Special franchise fees (56,157)
Transfers out (119,000)
Change in net position 409,635
Beginning net position 9,815,987
Ending net position $ 10,225,622
and Changes in Net Position
Condensed Statement of Revenues, Expenses
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
99
12. SEGMENTS OF ENTERPRISE ACTIVITIES, Continued
Net cash provided by (used in):
Operating activities $ 1,142,456
Noncapital financing activities (119,000)
Capital and related financing activities (575,842)
Investing activities 22,989
Net increase in cash 470,603
Beginning cash and cash equivalents 4,829,248
Ending cash and cash equivalents $ 5,299,851
Condensed Statement of Cash Flows
13. 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, 2017, 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 $0), 0.7% of SCPPA's $80,1650,000 investment (at cost) in Mead - Phoenix
Transmission Project (with related SCPPA indebtedness of $42,672,000), 1.8% of SCPPA's $200,987,000
investment (at cost) in Mead - Adelanto Transmission Project (with related SCPPA indebtedness of
$89,050,000), 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 indebtedness of $0).
14. RATE STABILIZATION FUND
The City of Azusa has provided for a rate stabilization fund in the amount of $10,235,542 (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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
100
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by
AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified
activities as of that date and dissolved redevelopment agencies as of January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities,
including incurring new indebtedness or obligations, entering into or modifying agreements or
contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment
plans and other similar actions, except actions required by law or to carry out existing enforceable
obligations, as defined in ABx1 26.
ABxl 26 and AB1484 allowed three regulatory oversight authorities, the Successor Authority's Oversight
Board, State Controller and Department of Finance (DOF), to review the former Authority's asset
transfer, obligation payments and wind down activities. ABxl 26 specifically directs the State Controller
to review the activities of all redevelopment agencies to determine whether an asset transfer between an
agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the
public agency that received the asset is not contractually committed to a third party for the expenditure
or encumbrance of the asset, the legislation purports to require the State Controller to order the asset
returned to the redevelopment agency. The State Controller completed its review in April 2016. The City
subsequently brought the asset transfer review to the Oversight Board. The transfer identified as
required to be returned in the asset transfer review was made during the FY 2016.
Effective January 31, 2012, all California redevelopment agencies were dissolved. Certain assets of the
Authority's Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all
remaining Authority assets and liabilities were distributed to a Successor Agency.
Under the provisions of AB 1484, the City could elect to become the Housing Successor and retain the
housing assets. The City elected to become the Housing Successor and on January 24, 2012, and on
February 1, 2012 certain housing assets were transferred to the City's Housing Successor Special
Revenue Fund.
Cash and investments of the Successor Agency are discussed in Note 2 above.
B. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of February
1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost
is not available. Contributed capital assets are valued at their estimated fair market value on the date
contributed. The Successor Agency's policy is to capitalize all assets with costs exceeding certain
minimum thresholds and with useful lives exceeding two years.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
101
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
B. Capital Assets, Continued
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose
of depreciation is to spread the cost of capital assets equitably among all users over the life of these
assets. The amount charged to depreciation expense each year represents that year's pro rata share of
the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the total
amount of depreciation taken over the years, called accumulated depreciation, is reported on the
balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method, which means the cost of the asset is divided by
its expected useful life in years and the result is charged to expense each year until the asset is fully
depreciated. The Successor Agency has assigned the useful lives and capitalization thresholds listed
below to capital assets.
Buildings and Improvements 7 – 50 years
Furniture, Fixtures and Equipment 5 – 20 years
Automobiles and Trucks 2 – 10 years
Infrastructure 25–65 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase is reflected in the capitalized value of the asset constructed, net
of interest earned on the invested proceeds over the same period.
Capital assets recorded at June 30 comprise:
Balance at Balance at
June 30, 2016 Additions Retirements June 30, 2017
Non Depreciable Assets:
Land 410,420$ -$ -$ 410,420$
Capital assets being depreciated:
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 for:
Land Improvements 863,336 58,400 - 921,736
Building and Structures 257,422 46,803 - 304,225
Infrastructure 133,594 23,949 - 157,543
Total accumulated depreciation 1,254,352 129,152 - 1,383,504
Net capital assets being depreciated 1,359,923 (129,152) - 1,230,771
Capital Assets, net 1,770,343$ (129,152) - 1,641,191$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
102
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt
Tax Allocations Bonds and Loans
All of the long-term debt of the Successor Agency is comprised of Tax Allocation Bonds issued by the
Redevelopment Agency. The Bonds are special obligations of the Agency and are secured only by the
Agency's tax increment revenues. Tax Allocation Bond and loan transactions were as follows:
Balance Balance Due Within
June 30, 2016 Additions Deletions June 30, 2017 One Year
Fiduciary Funds
2007 TABS, Series A 4,480,000$ -$ (535,000)$ 3,945,000$ 565,000$
2007 TABS, Series B 4,040,000 - (110,000) 3,930,000 120,000
2014 Refunding TAB 9,715,000 - (690,000) 9,025,000 705,000
2015 Refunding TAB, Series A 14,315,000 - - 14,315,000 -
2015 Refunding TAB, Series B 16,215,000 - (510,000) 15,705,000 315,000
Unamortized premium (discount) 222,334 - (8,012) 214,322 -
Total Fiduciary Funds 48,987,334$ -$ (1,853,012)$ 47,134,322$ 1,705,000$
2007 Tax Allocation Bonds, Series A
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 prior year with the issuance of the 2015 A & B Subordinate Tax Allocation
Refunding Bonds. The outstanding principal balance at June 30, 2017, was $3,945,000.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
103
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2017, including
interest are as follows:
Year Ending June 30, Principal Interest Total
2018 565,000$ 705,399$ 1,270,399$
2019 605,000 671,114 1,276,114
2020 635,000 634,224 1,269,224
2021 670,000 595,400 1,265,400
2022 715,000 554,196 1,269,196
2023 755,000 510,464 1,265,464
Total 3,945,000$ 3,670,797$ 7,615,797$
2007 Tax Allocation Bonds, Series B
The Azusa Redevelopment Agency issued $4,790,000 Series A Merged Project Area Tax Allocation
Bonds, dated July 31, 2007 to refund the 1997 tax allocation bonds. Current Interest Bonds are subject to
annual sinking fund installment payments ranging from $80,000 to $140,000 due beginning August 1,
2008 through August 1, 2021, bearing interest rates ranging from 4.00% to 5.00% per annum. Term
Bonds are due beginning August 1, 2022 through August 1, 2036, with installment payments ranging
from $150,000 to $305,000, bearing interest rates ranging from 5.25% to 5.30% per annum. Debt service
payments on the bonds are payable from pledged tax increment revenues. The outstanding principal
balance at June 30, 2017, was $3,930,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2017, including
interest are as follows:
Year Ending June 30, Principal Interest Total
2018 120,000$ 202,075$ 322,075$
2019 125,000 196,286 321,286
2020 130,000 190,198 320,198
2021 135,000 183,703 318,703
2022 140,000 176,828 316,828
2023-2027 830,000 762,425 1,592,425
2028-2032 1,070,000 512,991 1,582,991
2033-2037 1,380,000 190,270 1,570,270
Total 3,930,000$ 2,414,776$ 6,344,776$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
104
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, 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, 2017, was
$9,025,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2017, including
interest are as follows:
Year Ending June 30, Principal Interest Total
2018 705,000$ 385,744$ 1,090,744$
2019 730,000 353,394 1,083,394
2020 780,000 315,644 1,095,644
2021 820,000 275,644 1,095,644
2022 855,000 233,769 1,088,769
2023-2027 3,375,000 562,844 3,937,844
2028-2032 1,145,000 188,425 1,333,425
2033-2035 615,000 55,734 670,734
Total 9,025,000$ 2,371,197$ 11,396,197$
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 $2,635,000 maturing on
August 1, 2016 through August 1, 2036. The bonds carry interest rates of 1.00% and 4.50%.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
105
15. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2017, including
interest are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total
2018 -$ 504,213$ 504,213$ 315,000$ 610,631$ 925,631$
2019 - 504,213 504,213 325,000 605,019 930,019
2020 - 504,213 504,213 330,000 598,056 928,056
2021 - 504,213 504,213 330,000 589,806 919,806
2022 - 504,213 504,213 350,000 580,019 930,019
2023-2027 - 2,521,063 2,521,063 6,890,000 2,430,488 9,320,488
2028-2032 2,535,000 2,268,981 4,803,981 7,065,000 614,053 7,679,053
2033-2037 11,780,000 717,950 12,497,950 100,000 2,250 102,250
Total 14,315,000$ 8,029,059$ 22,344,059$ 15,705,000 6,030,322$ 21,735,322$
2015 Subordinate Bond, Series A 2015 Subordinate Bond, Series B
16. NEGATIVE FUND BALANCE
At June 30, 2017, the following funds reported negative fund balances:
Community Development Block Grant Special Revenue Fund - $11,589
LACMTA Special Revenue Fund $27
Capital Projects Capital Project Fund $541
Consumer Services Internal Service Fund $3,146,246
Self Insurance Internal Service Fund $1,931,879
The City believes the above noted deficits will be eliminated by collection of outstanding grant receivables
and future service charges.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
106
17. FUND BALANCE/NET POSITION DEFICIT AND EXPENDITURES IN EXCESS OF
APPROPRIATIONS
The following funds had expenditures in excess of appropriations:
Major:
General Fund 2,106,403$
Non-Major:
Special Revenue Funds:
Monrovia Nursery 32,938$
Capital Project Funds:
Park In-Lieu 4,522$
The expenditures in excess over appropriations were due to an accounting loss on sale of property that
was not included as part of the final amended budget; and payroll expenses for the police department
were also higher than anticipated.
18. COMITTMENTS 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 have been accrued in the accompanying combined financial statements
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2017
107
19. PRIOR PERIOD ADJUSTMENTS
The City recorded a prior period adjustments to correct allocation of expenditures, to eliminate a loan
receivable balance that represented a lease receivable due to the Azusa Public Financing Authority from the
City of Azusa that should have been eliminated during consolidation of governmental activities, to
correctly capture the value of an asset placed in service in fiscal year 2014 to agree with the City’s capital
asset inventory schedules, and to implement GASB 75..
Government-Wide Statements
Net Position Notes Net Position
as previously and Loans Capital Accounts Net OPEB Total OPEB as
Reported Receivable Assets Payable Obligation Liability Restated
Government-Wide Statements
Governmental Activities (1,509,979)$ (2,020,000)$ -$ 3,222$ 14,751,995$ (35,042,685)$ (23,817,447)$
Business-Type Activities 105,225,007$ -$ 557,343$ -$ -$ (1,844,352)$ 103,937,998$
Prior Period Adjustment
Fund Statements
Prior Period Adjustments
Fund Balance, Fund Balance,
as Previously Capital Accounts Total OPEB as
Reported Assets Payable Liability Restated
Fund Statements
Governmental Funds
General Fund 23,153,179 $ -$ 64,787 $ -$ 23,217,966 $
Non-Major Governmental Funds 12,628,890 $ -$ (61,565)$ -$ 12,567,325 $
Proprietary Funds
Water Enterprise Fund 53,427,304 $ -$ -$ (737,741)$ 52,689,563 $
Light Enterprise Fund 44,232,576 $ 557,343 $ -$ (368,870)$ 44,421,049 $
Internal Service Funds (4,759,761) $ -$ -$ (737,741)$ (5,497,502) $
108
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109
REQUIRED
SUPPLEMENTARY INFORMATION
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
110
1. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –
CALPERS AGENT MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS
2015-16 2014-15 2013-14
TOTAL PENSION LIABILITY
Service Cost 2,295,028$ 2,302,623$ 2,375,239$
Interest 9,381,992 8,989,759 8,658,209
Difference Between Expected and Actual Experience (892,890) (1,723,872) -
Changes of Assumptions - (2,292,502) -
Benefit Payments, Including Refunds of Employee Contributions (5,561,682) (4,975,226) (4,845,540)
Net Change in Total Pension Liability 5,222,448 2,300,782 6,187,908
Total Pension Liability - Beginning 125,166,625 122,865,843 116,677,935
Total Pension Liability - Ending (a) 130,389,073$ 125,166,625$ 122,865,843$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,381,498$ 1,979,679$ 2,043,584$
Contributions - Employee 1,066,129 1,032,337 1,029,164
Difference in projected and actual earnings - - -
Plan to plan resource movement - (145) (4,845,540)
Net Investment Income 522,172 2,198,171 14,908,401
Benefit Payments, Including Refunds of Employee Contributions (5,561,682) (4,975,226) -
Other Changes in Fiduciary Net Position (60,872) (112,413) -
Net Change in Fiduciary Net Position (1,652,755) 122,403 13,135,609
Plan Fiduciary Net Position - Beginning 99,880,362 99,757,959 86,622,350
Plan Fiduciary Net Position - Ending (b) 98,227,607$ 99,880,362$ 99,757,959$
Plan Net Position Liability/(Asset) - Ending (a) - (b) 32,161,466$ 25,286,263$ 23,107,884$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 75.33% 79.80% 81.19%
Covered Payroll 14,113,224$ 14,429,034$ 14,720,773$
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 227.88% 175.25% 156.97%
Measurement Period
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, 2015 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: In 2016, there were no changes. In 2015, amounts reported reflect an
adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without
a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5
percent discount rate.
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
111
2. SCHEDULE OF CONTRIBUTIONS – CALPERS AGENT MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS
2017 2016 2015
Misellaneous
Actuarially Determined Contributions 2,601,137$ 2,381,498$ 1,979,679$
Contribution in Relation to the Actuarially Determined Contributions (2,601,137) (2,381,498) (1,979,679)
Contribution Deficiency(Excess) - - -
Covered Payroll 15,065,169 14,113,224 14,429,034
Contributions as a Percentage of Covered Payroll 17.27% 16.87% 13.72%
Fiscal year:
3. SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY – COST SHARING
MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS
Measurement date: 6/30/2016 6/30/2015 6/30/2014
Proportion of the net pension liability 0.34338% 0.33263% 0.31257%
Proportionate share of the net pension liability 29,713,239$ 22,831,275$ 19,449,591$
Covered payroll 5,940,696$ 6,649,731$ 6,343,000$
Proportionate share of the net pension liability as a
percentage of covered payroll 500.16% 343.34% 306.63%
Plan's share of fiduciary net position as a percentage
of total pension liability 74.06% 78.40% 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.
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
112
4. SCHEDULE OF CONTRIBUTIONS – COST SHARING MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS
2017 2016 2015
Contractually required contribution (actuarially determined) 2,711,578$ 2,408,176$ 2,475,434$
Contribution in relation to the actuarially determined
contributions (2,711,578) (2,408,176) (2,475,434)
Contribution deficiency (excess) -$ -$ -$
Covered payroll 3,648,273$ 5,940,696$ 6,649,731$
Contributions as a percentage of covered payroll 74.32% 40.54% 37.23%
5. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – AMMA
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 91,040$ 88,388$ 102,116$
Interest 232,756 216,255 207,196
Effect of Economic/Demographics Gains or Losses - (221,832) -
Effect of Assumption Changes or Inputs - 131,142 -
Benefit Payments, Including Refunds of Employee Contributions (75,963) (67,291) (83,368)
Net Change in Total Pension Liability 247,833 146,662 225,944
Total Pension Liability - Beginning 3,271,390 3,124,728 2,898,784
Total Pension Liability - Ending (a) 3,519,223$ 3,271,390$ 3,124,728$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (75,963)$ (67,291)$ (83,368)$
Contributions - Employer 201,498 172,625 138,866
Contributions - Employee 48,741 43,558 46,205
Net Investment Income 250,204 (6,961) 47,672
Administrative Expenses (8,505) (11,509) (8,240)
Net Change in Fiduciary Net Position 415,975 130,422 141,135
Plan Fiduciary Net Position - Beginning 2,038,302 1,907,880 1,766,745
Plan Fiduciary Net Position - Ending (b) 2,454,277$ 2,038,302$ 1,907,880$
Plan Net Position Liability/(Asset) - Ending (a) - (b) 1,064,946$ 1,233,088$ 1,216,848$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 69.74% 62.31% 61.06%
Covered Payroll 1,937,372$ 1,880,944$ 2,128,243$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 54.97% 65.56% 57.18%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
113
6. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –
EXECUTIVE PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
2017 2016 2015
TOTAL PENSION LIABILITY
Interest 206,088$ 201,357$ 176,286$
Effect of Economic/Demographics Gains or Losses - 201,732 -
Effect of Assumption Changes or Inputs - 106,795 -
Benefit Payments, Including Refunds of Employee Contributions - (127,936) (125,424)
Net Change in Total Pension Liability 206,088 381,948 50,862
Total Pension Liability - Beginning 3,012,837 2,630,889 2,580,027
Total Pension Liability - Ending (a) 3,218,925$ 3,012,837$ 2,630,889$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions -$ (127,936)$ (125,424)$
Contributions - Employer 124,997 97,284 78,751
Net Investment Income 112,249 (5,857) 26,218
Administrative Expenses (4,982) (8,348) (5,569)
Net Change in Fiduciary Net Position 232,264 (44,857) (26,024)
Plan Fiduciary Net Position - Beginning 950,509 995,366 1,021,390
Plan Fiduciary Net Position - Ending (b) 1,182,773$ 950,509$ 995,366$
Plan Net Position Liability/(Asset) - Ending (a) - (b) 2,036,152$ 2,062,328$ 1,635,523$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 36.74% 31.55% 37.83%
Covered Payroll 692,804$ 672,625$ 990,274$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 293.90% 306.61% 165.16%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
114
7. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – IBEW
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 103,488$ 100,474$ 107,529$
Interest 223,883 210,235 199,129
Effect of Economic/Demographics Gains or Losses - (61,026) -
Effect of Assumption Changes or Inputs - 28,545 -
Benefit Payments, Including Refunds of Employee Contributions (113,110) (124,197) (93,243)
Net Change in Total Pension Liability 214,261 154,031 213,415
Total Pension Liability - Beginning 3,150,445 2,996,414 2,782,999
Total Pension Liability - Ending (a) 3,364,706$ 3,150,445$ 2,996,414$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (113,110)$ (124,197)$ (93,243)$
Contributions - Employer 207,056 214,921 153,146
Contributions - Employee 76,124 79,015 82,044
Net Investment Income 225,263 (4,679) 41,194
Administrative Expenses (8,238) (10,938) (7,492)
Net Change in Fiduciary Net Position 387,095 154,122 175,649
Plan Fiduciary Net Position - Beginning 1,828,866 1,674,744 1,499,095
Plan Fiduciary Net Position - Ending (b) 2,215,961$ 1,828,866$ 1,674,744$
Plan Net Position Liability/(Asset) - Ending (a) - (b) 1,148,745$ 1,321,579$ 1,321,670$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 65.86% 58.05% 55.89%
Covered Payroll 3,805,104$ 4,117,972$ 4,060,559$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 30.19% 32.09% 32.55%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
115
8. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – SEIU
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 16,140$ 15,670$ 18,174$
Interest 40,470 37,853 32,199
Effect of Economic/Demographics Gains or Losses - 38,614 -
Effect of Assumption Changes or Inputs - 9,089 -
Benefit Payments, Including Refunds of Employee Contributions (16,780) (16,451) (13,203)
Net Change in Total Pension Liability 39,830 84,775 37,170
Total Pension Liability - Beginning 570,242 485,467 448,297
Total Pension Liability - Ending (a) 610,072$ 570,242$ 485,467$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (16,780)$ (16,451)$ (13,203)$
Contributions - Employer 26,555 24,410 12,890
Contributions - Employee 28,554 26,100 25,312
Net Investment Income 39,629 (863) 7,232
Administrative Expenses (1,808) (5,041) (1,510)
Net Change in Fiduciary Net Position 76,150 28,155 30,721
Plan Fiduciary Net Position - Beginning 318,444 290,289 259,568
Plan Fiduciary Net Position - Ending (b) 394,594$ 318,444$ 290,289$
Plan Net Position Liability/(Asset) - Ending (a) - (b) 215,478$ 251,798$ 195,178$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 64.68% 55.84% 59.80%
Covered Payroll 561,325$ 544,976$ 620,510$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 38.39% 46.20% 31.45%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
116
9. SCHEDULE OF CONTRIBUTIONS –PARS RETIREMENT ENHANCEMENT PLANS – LAST 10
YEARS
2017 2016 2015
AMMA Bargaining Group
Actuarially determined contribution 201,498$ 172,625$ 138,866$
Contribution in relation to the actuarially determined
contributions (201,498) (172,625) (138,866)
Contribution deficiency (excess) -$ -$ -$
Covered payroll 1,937,372$ 1,880,944$ 2,128,243$
Contributions as a percentage of covered payroll 10.40% 9.18% 6.52%
Executive/ Contract Bargaining Group
Actuarially determined contribution 124,997$ 97,284$ 115,922$
Contribution in relation to the actuarially determined
contributions (124,997) (97,284) (115,922)
Contribution deficiency (excess) -$ -$ -$
Covered payroll 692,804$ 672,625$ 990,274$
Contributions as a percentage of covered payroll 18.04% 14.46% 11.71%
IBEW Employees
Actuarially determined contribution 207,056$ 214,921$ 153,146$
Contribution in relation to the actuarially determined
contributions (207,056) (214,921) (153,146)
Contribution deficiency (excess) -$ -$ -$
Covered payroll 3,805,104$ 4,117,972$ 4,060,559$
Contributions as a percentage of covered payroll 5.44% 5.22% 3.77%
SEIU Bargaining Group
Actuarially determined contribution 26,555$ 24,410$ 12,890$
Contribution in relation to the actuarially determined
contributions (26,555) (24,410) (12,890)
Contribution deficiency (excess) -$ -$ -$
Covered payroll 561,325$ 544,976$ 620,510$
Contributions as a percentage of covered payroll 4.73% 4.48% 2.08%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
117
10. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED RATIOS –
LAST 10 YEARS
2017
Total OPEB liability
Service cost $ 1,705,253
Interest on the total pension liability 1,275,916
Contribution - employer (588,634)
Implicit rate subsidy fulfilled (275,942)
Net changes 2,116,593
Total OPEB liability - beginning of year 36,887,037
Total OPEB liability - end of year $ 39,003,630
Covered payroll $ 20,340,713
City's total OPEB liability as a percentage of covered payroll 191.75%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2017
118
11. 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.
City of Azusa
Required Supplementary Information
General Fund Budgetary Comparison Schedule by Department
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 23,217,966$ 23,217,966$ 23,217,966$ -$
Resources (Inflows):
Taxes 30,509,515 30,574,515 32,293,121 1,718,606
Assessments 1,719,562 1,719,562 1,941,549 221,987
Licenses and permits 989,861 1,001,561 1,107,350 105,789
Intergovernmental 490,100 510,100 326,990 (183,110)
Charges for services 1,518,600 1,657,500 1,806,403 148,903
Use of money and property 2,217,900 2,217,900 704,737 (1,513,163)
Fines and forfeitures 1,209,050 1,182,050 1,068,510 (113,540)
Contributions 1,500 11,500 2,936 (8,564)
Miscellaneous 266,000 266,000 1,507,462 1,241,462
Transfers in 1,530,690 1,530,690 1,530,690 -
Proceeds from sale of capital assets - - 4,307 4,307
Amounts available for appropriations 63,670,744 63,889,344 65,512,021 1,622,677
Charges to Appropriations (Outflows):
General government
City Council 135,525 135,525 125,367 10,158
City Attorney 250,000 250,000 251,351 (1,351)
Administration 387,710 420,810 413,508 7,302
Promotion/Membership 192,070 192,070 167,569 24,501
City Clerk 662,670 662,670 527,059 135,611
Library Services - General 1,117,940 1,133,990 1,024,792 109,198
Library Services - Youth 31,430 31,430 31,285 145
Finance - Accounting 1,029,495 1,149,495 1,053,900 95,595
Cash Management 203,870 203,870 1,441,877 (1,238,007)
Purchasing 224,265 224,265 239,028 (14,763)
Printing Services 9,000 9,000 9,047 (47)
Human Resources 456,000 583,391 518,713 64,678
City-wide 2,519,954 2,297,909 3,109,459 (811,550)
Admin Services / Business Lic 3,100 3,100 1,692 1,408
Business License 161,175 161,175 136,999 24,176
Public Safety
Police 15,666,795 15,701,958 16,341,097 (639,139)
Emergency Services 10,050 10,050 6,087 3,963
Police Department Contracts 857,004 797,004 783,647 13,357
Pension Safety 3,850 3,850 3,850 -
INF 383,805 393,805 410,910 (17,105)
Community development
Planning 356,365 398,365 395,085 3,280
Building regulation 688,860 768,760 702,888 65,872
Code Enforcement 829,275 949,275 736,932 212,343
Parks and recreation
Recreation 1,344,867 1,344,867 1,425,173 (80,306)
Parks and maintenance 1,634,605 1,634,605 1,890,437 (255,832)
Senior programs 172,440 172,440 161,842 10,598
Women's Club 21,460 21,460 19,178 2,282
Public works
Engineering Services 172,920 145,920 145,466 454
Graffiti Removal 143,010 143,010 74,130 68,880
Facilities Maintenance 527,555 587,555 587,574 (19)
Capital outlay 185,860 803,956 682,841 121,115
Debt service:
Principal retirement 1,065,000 1,065,000 1,065,000 -
Interest and fiscal charges 160,600 160,600 183,800 (23,200)
Transfers out 5,780,533 5,780,533 5,780,533 -
Total charges to appropriations 37,389,058 38,341,713 40,448,116 (2,106,403)
Budgetary fund balance, June 30 26,281,686$ 25,547,631$ 25,063,905$ (483,726)$
Budget Amounts
119
City of Azusa
Required Supplementary Information
Grants and Seizuire Fund Budgetary Schedule
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (2,450,450)$ (2,450,450)$ (2,450,450)$ -$
Resources (Inflows):
Taxes 40,000 40,000 46,979 6,979
Assessments - - - -
Licenses and permits - - - -
Intergovernmental 1,268,586 5,361,086 4,180,708 (1,180,378)
Charges for services 7,000 7,000 74,328 67,328
Use of money and property 100 100 12,251 12,151
Fines and forfeitures - - - -
Contributions 2,000 2,000 3,474 1,474
Miscellaneous - - 56,479 56,479
Transfers in 40,000 40,000 - (40,000)
Capital lease proceeds - - - -
Amounts available for appropriations 1,357,686 5,450,186 4,374,219 (1,075,967)
Charges to Appropriations (Outflows):
General government - 103,807 89,966 13,841
Public Safety 246,810 626,511 409,360 217,151
Community development 26,696 103,727 58,867 44,860
Parks and recreation - - - -
Public works - 36,800 40,229 (3,429)
Capital outlay 53,600 3,732,545 133,061 3,599,484
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Transfers out - - - -
Total charges to appropriations 327,106 4,603,390 731,483 3,871,907
Budgetary fund balance, June 30 (1,419,870)$ (1,603,654)$ 1,192,286$ 2,795,940$
Budget Amounts
120
SUPPLEMENTARY INFORMATION
121
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to acount for revenues that are legally restricted to expenditures for particular
purposes.
State Gasoline Tax
To account for Highways Users Tax funds received.The State imposes excise taxes on transportation fuels. Taxes on
fuel used for motor vehicles is transferred to the Highways Users Tax Account and is apportioned to cities under
population-based formulas contained in the State Streets and Highways code. These funds are used for street
maintenance and construction.
Proposition A
This fund is used to account for restricted Proposition A monies and related expenditures.
Proposition C
This fund is used to account for restricted Proposition C monies and related expenditures.
Community Development Block Grant
This fund accounts for grants received indirectly from the U.S. Department of Housing and Urban Development's
Community Block Grant Program. The grant funds are used to provide housing rehabilitation loans to qualified
homeowners and to provide support for community service organizations.
Senior Nutrition
This fund is used to account for grant monies received from the County of Los Angeles for the aging program and
other related activities.
Public Benefit Program
This fund is used to account for monies related to the City's electric utility that are restricted for benefit programs.
Air Quality Improvement
This fund is used to account for monies received from the State and other sources that are restricted for air quality
management activities.
Supplemental Law Enforcement
This fund is used to account for monies received as part of the State Supplemental Law Enforcement program that are
restricted for public safety purposes.
Fire Safety
This fund is used to account for monies collected and restricted for fire safety activities.
Monrovia Nursery
This fund is used to account for activities of the Monrovia Nursery.
Employee Benefits
This fund is used to account for monies that have been committed by City Council to be set aside to provide funding
for employee benefits.
122
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS, Continued:
Utility Mitigation
This fund is used to account for federal monies collected for utility mitigation activities.
Highway 39
This fund is used to account for monies collected for Highway 39.
LACMTA
To account for activities related to the Los Angeles County Metro Transportation Authority.
Measure R
This fund is used to account for restricted Measure R monies and related expenditures.
AB939 Fee
This fund is used to account for restricted AB939 monies and related expenditures.
Rosedale Traffic Mitigation
To account for traffic mitigation fees related to the Rosedale district area.
CAPITAL PROJECT FUNDS:
Capital project funds are used to account for the acquisition, construction and improvements to major capital facilities
Park In-Lieu
To account for park in lieu fees and related capital project expenditures.
Capital Projects
To account for capital project expenditures.
Public Works Endowment
To account for capital project expenditures funded by donations and other monies restricted for public works projects.
DEBT SERVICE FUNDS
Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term
debt principal, interest and related costs.
Public Financing Authority
To account for debt service expenditures of debt issued by the City of Azusa Public Financing Authority.
123
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2017
Community
State Development
Gasoline Tax Proposition A Proposition C Block Grant
ASSETS
Pooled cash and investments 89,839$ 1,597,087$ 1,590,578$ -$
Receivables:
Accounts 4,291 51,374 688 127,638
Taxes - - - -
Notes and loans - - - 57,237
Accrued interest - 3,924 3,930 -
Prepaid costs - 249 - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 94,130 1,652,634 1,595,196 184,875
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 37,880 22,350 9,565 17,100
Accrued liabilities 55,322 27,392 71,820 7,779
Unearned revenues - - - -
Due to other funds - - - 114,348
Advances from other funds - - - -
Total liabilities 93,202 49,742 81,385 139,227
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - 23,352 - 57,237
Total deferred inflow of resources - 23,352 - 57,237
FUND BALANCES
Nonspendable:
Prepaid costs - 249 - -
Restricted for:
Community development projects - 1,579,291 1,513,811 -
Public safety - - - -
Capital projects 928 - - -
Debt service - - - -
Unassigned - - - (11,589)
Total fund balances 928 1,579,540 1,513,811 (11,589)
Total liabilities, deferred inflows
of resources, and fund balances 94,130$ 1,652,634$ 1,595,196$ 184,875$
Special Revenue Funds
124
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee
Citizen Program Improvement Enforcement Fire Safety Nursery Benefits
42,837$ 1,007,584$ 130,664$ 323,969$ 238,294$ 435,656$ -$
852 76,584 16,524 - - 3,487 1,395
- - - - - 10,679 -
- 226 - - - - -
- 2,505 281 - - 1,677 -
1,250 325 - - - - -
- - - - - - -
44,939 1,087,224 147,469 323,969 238,294 451,499 1,395
3,599 113,826 2,149 - - 10,969 -
7,470 8,475 861 - - 9,275 -
- - - 278,950 - - -
- - - - - - 489,236
- - - - - - -
11,069 122,301 3,010 278,950 - 32,614 489,236
- - - - - - -
- - - - - - -
1,250 325 - - - - -
32,620 964,598 - - - - -
- - - 45,019 238,294 - -
- - 144,459 - - 418,885 -
- - - - - - -
- - - - - - (487,841)
33,870 964,923 144,459 45,019 238,294 418,885 (487,841)
44,939$ 1,087,224$ 147,469$ 323,969$ 238,294$ 451,499$ 1,395$
Special Revenue Funds
125
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2017
Utility
Mitigation Highway 39 LACMTA Measure R
ASSETS
Pooled cash and investments 939,083$ 1,533,421$ -$ 709,791$
Receivables:
Accounts - - - 49,494
Taxes - - - -
Notes and loans - - - 1,082
Accrued interest - 4,064 - 3,004
Prepaid costs - - - -
Restricted assets:
Cash and investments with fiscal agents - - - 3,513,411
Total assets 939,083 1,537,485 - 4,276,782
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 200 - - 80,297
Accrued liabilities - - - 41,771
Unearned revenues - - - -
Due to other funds - - 27 -
Advances from other funds - - - -
Total liabilities 200 - 27 122,068
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - - - 35,818
Total deferred inflow of resources - - - 35,818
FUND BALANCES
Nonspendable
Prepaid costs - - - -
Restricted for
Community development projects - 1,537,485 - -
Public safety - - - -
Capital projects 938,883 - - 4,118,896
Debt service - - - -
Unassigned - - (27) -
Total fund balances 938,883 1,537,485 (27) 4,118,896
Total liabilities, deferred inflows
of resources, and fund balances 939,083$ 1,537,485$ -$ 4,276,782$
Special Revenue Funds
126
Debt Service
Funds
Rosedale Public Total Nonmajor
Traffic Capital Public Works Financing Governmental
AB939 Fee Mitigation Park in-lieu Projects Endowment Authority Funds
404,235$ 508,023$ 54,947$ 749,459$ 181,674$ 8,617$ 10,545,758$
7,425 - - - - - 339,752
- - - - - - 10,679
1,060 - - - - - 59,605
- 1,345 146 - 506 - 21,382
1,250 - - - - - 3,074
- - - - - 484,302 3,997,713
413,970 509,368 55,093 749,459 182,180 492,919 14,977,963
2,921 - 1,180 - - 1,850 303,886
6,848 - - - 6,102 - 243,115
- - - - - - 278,950
- - - - - - 603,611
- - - 750,000 - - 750,000
9,769 - 1,180 750,000 6,102 1,850 2,191,932
- - - - - - 116,407
- - - - - - 116,407
1,250 - - - - - 3,074
- - - - - - 5,627,805
- 509,368 - - 176,078 - 968,759
402,951 - 53,913 - - - 6,078,915
- - - - - 491,069 491,069
- - - (541) - - (499,998)
404,201 509,368 53,913 (541) 176,078 491,069 12,669,624
413,970$ 509,368$ 55,093$ 749,459$ 182,180$ 492,919$ 14,977,963$
Special Revenue Funds Capital Projects Funds
127
City of Azusa
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2017
Community
State Development
Gasoline Tax Proposition A Proposition C Block Grant
REVENUES:
Taxes -$ 901,876$ 746,446$ -$
Licenses and permits - - - -
Intergovernmental 942,555 117,940 98,544 381,868
Charges for services - 18,239 22,760 -
Use of money and property 23 10,619 10,210 -
Contributions - - - 1,277
Total revenues 942,578 1,048,674 877,960 383,145
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Community development - - - 395,323
Parks and recreation 58,998 - - -
Public works 961,622 690,895 395,567 -
Capital outlay - - 58,322 -
Debt service:
Principal repayment - - - -
Interest and fiscal charges - - - -
Total expenditures 1,020,620 690,895 453,889 395,323
REVENUE OVER
(UNDER) EXPENDITURES (78,042) 357,779 424,071 (12,178)
OTHER FINANCING
SOURCES (USES):
Transfers in 78,970 - - -
Transfers out - - - -
Total other financing sources (uses)78,970 - - -
Net change in fund balances 928 357,779 424,071 (12,178)
FUND BALANCES:
Beginning of year, as restated - 1,221,761 1,089,740 589
End of year 928$ 1,579,540$ 1,513,811$ (11,589)$
Special Revenue Funds
128
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee
Citizen Program Improvement Enforcement Fire Safety Nursery Benefits
-$ -$ -$ -$ -$ -$ -$
- - - - - - -
126,120 - 93,192 28,364 - - -
- 1,089,468 7,062 - 133,452 623,448 -
- 7,023 856 2,566 - 4,933 -
71,149 - - - - - -
197,269 1,096,491 101,110 30,930 133,452 628,381 -
- 246,488 - - - 107,298 1,424,042
- - - 28,364 4,576,972 - -
- 681,470 - - - - -
325,300 - - - - - -
- - 18,791 - - 382,797 -
- - 98,557 - - - -
- - - - - - -
- - - - - - -
325,300 927,958 117,348 28,364 4,576,972 490,095 1,424,042
(128,031) 168,533 (16,238) 2,566 (4,443,520) 138,286 (1,424,042)
133,845 - - - 4,576,973 - 948,615
- - - - - (332,600) -
133,845 - - - 4,576,973 (332,600) 948,615
5,814 168,533 (16,238) 2,566 133,453 (194,314) (475,427)
28,056 796,390 160,697 42,453 104,841 613,199 (12,414)
33,870$ 964,923$ 144,459$ 45,019$ 238,294$ 418,885$ (487,841)$
Special Revenue Funds
129
City of Azusa
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2017
Utility
Mitigation Highway 39 LACMTA Measure R
REVENUES:
Taxes -$ -$ -$ 561,197$
Licenses and permits - - - -
Intergovernmental 10,084 - - 11,317
Charges for services - - - -
Use of money and property - 11,831 - 20,497
Contributions - - - -
Total revenues 10,084 11,831 - 593,011
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Parks and recreation - - - -
Public works 9,998 - - 640,047
Capital outlay - - - 130,285
Debt service:
Principal repayment - - - 80,000
Interest and fiscal charges - - - 133,565
Total expenditures 9,998 - - 983,897
REVENUE OVER
(UNDER) EXPENDITURES 86 11,831 - (390,886)
OTHER FINANCING
SOURCES (USES):
Transfers in 217,222 - - -
Transfers out - - - -
Total other financing sources (uses)217,222 - - -
Net change in fund balances 217,308 11,831 - (390,886)
FUND BALANCES:
Beginning of year, as restated 721,575 1,525,654 (27) 4,509,782
End of year 938,883$ 1,537,485$ (27)$ 4,118,896$
Special Revenue Funds
130
Debt Service
Funds
Rosedale Public Total Nonmajor
Traffic Capital Public Works Financing Governmental
AB939 Fee Mitigation Park in-lieu Projects Endowment Authority Funds
-$ -$ -$ -$ -$ -$ 2,209,519$
- - 60,455 - - - 60,455
- - - - - - 1,809,984
- - - - - - 1,894,429
199,059 3,918 382 - 2,071 - 273,988
- - - - - - 72,426
199,059 3,918 60,837 - 2,071 - 6,320,801
- - - - - - 1,777,828
- - - - - - 4,605,336
- - - - - - 1,076,793
- - 35,322 - - - 419,620
200,624 - - - 138,278 - 3,438,619
- - 8,522 - 17,148 - 312,834
- - - - - 275,000 355,000
- - - - - 88,027 221,592
200,624 - 43,844 - 155,426 363,027 12,207,622
(1,565) 3,918 16,993 - (153,355) (363,027) (5,886,821)
- - - - - 366,095 6,321,720
- - - - - - (332,600)
- - - - - 366,095 5,989,120
(1,565) 3,918 16,993 - (153,355) 3,068 102,299
405,766 505,450 36,920 (541) 329,433 488,001 12,567,325
404,201$ 509,368$ 53,913$ (541)$ 176,078$ 491,069$ 12,669,624$
Capital Projects FundsSpecial Revenue Funds
131
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
State Gasoline Tax
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 1,018,700 1,018,700 942,555 (76,145)
Use of money and property - - 23 23
Transfers in 78,970 78,970 78,970 -
Amounts available for appropriations 1,097,670 1,097,670 1,021,548 (76,122)
Charges to Appropriations (Outflows):
Parks and recreation 59,000 59,000 58,998 2
Public works 1,228,320 1,300,125 961,622 338,503
Total charges to appropriations 1,287,320 1,359,125 1,020,620 338,505
Budgetary fund balance, June 30 (189,650)$ (261,455)$ 928$ 262,383$
Budget Amounts
132
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,221,761$ 1,221,761$ 1,221,761$ -$
Resources (Inflows):
Taxes 905,579 905,579 901,876 (3,703)
Intergovernmental 159,000 159,000 117,940 (41,060)
Charges for services 22,230 22,230 18,239 (3,991)
Use of money and property - - 10,619 10,619
Amounts available for appropriations 2,308,570 2,308,570 2,270,435 (38,135)
Charges to Appropriations (Outflows):
Public works 795,732 802,147 690,895 111,252
Total charges to appropriations 795,732 802,147 690,895 111,252
Budgetary fund balance, June 30 1,512,838$ 1,506,423$ 1,579,540$ 73,117$
Budget Amounts
133
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition C
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,089,740$ 1,089,740$ 1,089,740$ -$
Resources (Inflows):
Taxes 751,154 751,154 746,446 (4,708)
Intergovernmental - 31,170 98,544 67,374
Charges for services 62,990 62,990 22,760 (40,230)
Use of money and property - - 10,210 10,210
Amounts available for appropriations 1,903,884 1,935,054 1,967,700 32,646
Charges to Appropriations (Outflows):
Public works 567,202 630,237 395,567 234,670
Capital outlay 375,820 389,520 58,322 331,198
Total charges to appropriations 943,022 1,019,757 453,889 565,868
Budgetary fund balance, June 30 960,862$ 915,297$ 1,513,811$ 598,514$
Budget Amounts
134
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Community Development Block Grant
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 589$ 589$ 589$ -$
Resources (Inflows):
Intergovernmental 527,639 470,067 381,868 (88,199)
Contributions 2,600 2,600 1,277 (1,323)
Amounts available for appropriations 530,828 473,256 383,734 (89,522)
Charges to Appropriations (Outflows):
Community development 221,199 406,992 395,323 11,669
Capital outlay 91,000 65,675 - 65,675
Total charges to appropriations 312,199 472,667 395,323 77,344
Budgetary fund balance, June 30 218,629$ 589$ (11,589)$ (12,178)$
Budget Amounts
135
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Senior Nutrition
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 28,056$ 28,056$ 28,056$ -$
Resources (Inflows):
Intergovernmental 118,870 125,344 126,120 776
Contributions 75,000 69,417 71,149 1,732
Transfers in 118,695 118,695 133,845 15,150
Amounts available for appropriations 340,621 341,512 359,170 17,658
Charges to Appropriations (Outflows):
Parks and recreation 312,565 399,021 325,300 73,721
Total charges to appropriations 312,565 399,021 325,300 73,721
Budgetary fund balance, June 30 28,056$ (57,509)$ 33,870$ 91,379$
Budget Amounts
136
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Benefit Program
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 796,390$ 796,390$ 796,390$ -$
Resources (Inflows):
Charges for services 1,079,815 1,079,815 1,089,468 9,653
Use of money and property 1,300 1,300 7,023 5,723
Amounts available for appropriations 1,877,505 1,877,505 1,892,881 15,376
Charges to Appropriations (Outflows):
General government 294,635 294,635 246,488 48,147
Community development 729,000 729,000 681,470 47,530
Capital outlay 40,000 40,000 - 40,000
Total charges to appropriations 1,063,635 1,063,635 927,958 135,677
Budgetary fund balance, June 30 813,870$ 813,870$ 964,923$ 151,053$
Budget Amounts
137
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Air Quality Improvement
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 160,697$ 160,697$ 160,697$ -$
Resources (Inflows):
Intergovernmental 60,900 60,900 93,192 32,292
Charges for services 14,210 14,210 7,062 (7,148)
Use of money and property - - 856 856
Amounts available for appropriations 235,807 235,807 261,807 26,000
Charges to Appropriations (Outflows):
Public works 26,850 26,850 18,791 8,059
Capital outlay 42,320 119,724 98,557 21,167
Total charges to appropriations 69,170 146,574 117,348 29,226
Budgetary fund balance, June 30 166,637$ 89,233$ 144,459$ 55,226$
Budget Amounts
138
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Supplemental Law Enforcement
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 42,453$ 42,453$ 42,453$ -$
Resources (Inflows):
Intergovernmental 115,000 115,000 28,364 (86,636)
Use of money and property - - 2,566 2,566
Amounts available for appropriations 157,453 157,453 73,383 (84,070)
Charges to Appropriations (Outflows):
Public Safety - 36,050 28,364 7,686
Total charges to appropriations - 36,050 28,364 7,686
Budgetary fund balance, June 30 157,453$ 121,403$ 45,019$ (76,384)$
Budget Amounts
139
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Safety
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 104,841$ 104,841$ 104,841$ -$
Resources (Inflows):
Charges for services 80,000 80,000 133,452 53,452
Transfers in 4,576,973 4,576,973 4,576,973 -
Amounts available for appropriations 4,761,814 4,761,814 4,815,266 53,452
Charges to Appropriations (Outflows):
Public Safety 4,576,973 4,576,973 4,576,972 1
Total charges to appropriations 4,576,973 4,576,973 4,576,972 1
Budgetary fund balance, June 30 184,841$ 184,841$ 238,294$ 53,453$
Budget Amounts
140
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Monrovia Nursery
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 613,199$ 613,199$ 613,199$ -$
Resources (Inflows):
Charges for services 606,000 606,000 623,448 17,448
Use of money and property 3,700 3,700 4,933 1,233
Amounts available for appropriations 1,222,899 1,222,899 1,241,580 18,681
Charges to Appropriations (Outflows):
General government 90,802 90,802 107,298 (16,496)
Public works 689,790 357,190 373,632 (16,442)
Transfers out - 332,600 332,600 -
Total charges to appropriations 780,592 780,592 813,530 (32,938)
Budgetary fund balance, June 30 442,307$ 442,307$ 428,050$ (14,257)$
Budget Amounts
141
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Employee Benefits
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (12,414)$ (12,414)$ (12,414)$ -$
Resources (Inflows):
Transfers in 948,615 948,615 948,615 -
Amounts available for appropriations 936,201 936,201 936,201 -
Charges to Appropriations (Outflows):
General government 948,615 1,598,615 1,424,042 174,573
Total charges to appropriations 948,615 1,598,615 1,424,042 174,573
Budgetary fund balance, June 30 (12,414)$ (662,414)$ (487,841)$ 174,573$
Budget Amounts
142
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Utility Mitigation
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 721,575$ 721,575$ 721,575$ -$
Resources (Inflows):
Intergovernmental - 96,874 10,084 (86,790)
Transfers in 125,000 125,000 217,222 92,222
Amounts available for appropriations 846,575 943,449 948,881 5,432
Charges to Appropriations (Outflows):
Public works - 34,368 9,998 24,370
Capital outlay 132,500 290,622 - 290,622
Total charges to appropriations 132,500 324,990 9,998 314,992
Budgetary fund balance, June 30 714,075$ 618,459$ 938,883$ 320,424$
Budget Amounts
143
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Highway 39
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,525,654$ 1,525,654$ 1,525,654$ -$
Resources (Inflows):
Use of money and property - - 11,831 11,831
Amounts available for appropriations 1,525,654 1,525,654 1,537,485 11,831
Charges to Appropriations (Outflows):
Capital outlay - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 1,525,654$ 1,525,654$ 1,537,485$ 11,831$
Budget Amounts
144
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
LACMTA
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (27)$ (27)$ (27)$ -$
Resources (Inflows):
Intergovernmental 245,000 245,000 - (245,000)
Amounts available for appropriations 244,973 244,973 (27) (245,000)
Charges to Appropriations (Outflows):
Capital outlay 1,065,000 935,000 - 935,000
Total charges to appropriations 1,065,000 935,000 - 935,000
Budgetary fund balance, June 30 (820,027)$ (690,027)$ (27)$ 690,000$
Budget Amounts
145
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure R
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,509,782$ 4,509,782$ 4,509,782$ -$
Resources (Inflows):
Taxes 563,324 963,324 561,197 (402,127)
Intergovernmental - - 11,317 11,317
Use of money and property - - 20,497 20,497
Amounts available for appropriations 5,073,106 5,473,106 5,102,793 (370,313)
Charges to Appropriations (Outflows):
Public works 337,270 737,270 640,047 97,223
Capital outlay 2,280,080 2,284,030 130,285 2,153,745
Debt service:
Principal retirement 80,000 80,000 80,000 -
Interest and fiscal charges 147,460 147,460 133,565 13,895
Total charges to appropriations 2,844,810 3,248,760 983,897 2,264,863
Budgetary fund balance, June 30 2,228,296$ 2,224,346$ 4,118,896$ 1,894,550$
Budget Amounts
146
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
AB939 Fee
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 405,766$ 405,766$ 405,766$ -$
Resources (Inflows):
Use of money and property 218,609 218,609 199,059 (19,550)
Amounts available for appropriations 624,375 624,375 604,825 (19,550)
Charges to Appropriations (Outflows):
Public works 208,330 208,330 200,624 7,706
Total charges to appropriations 208,330 208,330 200,624 7,706
Budgetary fund balance, June 30 416,045$ 416,045$ 404,201$ (11,844)$
Budget Amounts
147
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Rosedale Traffic Mitigation
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 505,450$ 505,450$ 505,450$ -$
Resources (Inflows):
Use of money and property - - 3,918 3,918
Amounts available for appropriations 505,450 505,450 509,368 3,918
Charges to Appropriations (Outflows):
Public works - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 505,450$ 505,450$ 509,368$ 3,918$
Budget Amounts
148
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Park In-lieu
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 36,920$ 36,920$ 36,920$ -$
Resources (Inflows):
Licenses and permits 3,000 3,000 60,455 57,455
Use of money and property - - 382 382
Amounts available for appropriations 39,920 39,920 97,757 57,837
Charges to Appropriations (Outflows):
Parks and recreation - 29,322 35,322 (6,000)
Capital outlay - 10,000 8,522 1,478
Total charges to appropriations - 39,322 43,844 (4,522)
Budgetary fund balance, June 30 39,920$ 598$ 53,913$ 53,315$
Budget Amounts
149
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (541)$ (541)$ (541)$ -$
Resources (Inflows):
Transfers in - - - -
Amounts available for appropriations (541) (541) (541) -
Charges to Appropriations (Outflows):
Capital outlay - - - -
Transfers out - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 (541)$ (541)$ (541)$ -$
Budget Amounts
150
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Works Endowment
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 329,433$ 329,433$ 329,433$ -$
Resources (Inflows):
Use of money and property - - 2,071 2,071
Amounts available for appropriations 329,433 329,433 331,504 2,071
Charges to Appropriations (Outflows):
Public works 37,910 150,535 138,278 12,257
Capital outlay 12,000 29,148 17,148 12,000
Total charges to appropriations 49,910 179,683 155,426 24,257
Budgetary fund balance, June 30 279,523$ 149,750$ 176,078$ 26,328$
Budget Amounts
151
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Financing Authority
For the year ended June 30, 2017
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 488,001$ 488,001$ 488,001$ -$
Resources (Inflows):
Transfers in 366,095 366,095 366,095 -
Amounts available for appropriations 854,096 854,096 854,096 -
Charges to Appropriations (Outflows):
Debt service:
Principal retirement 275,000 275,000 275,000 -
Interest and fiscal charges 91,095 91,095 88,027 3,068
Total charges to appropriations 366,095 366,095 363,027 3,068
Budgetary fund balance, June 30 488,001$ 488,001$ 491,069$ 3,068$
Budget Amounts
152
NON-MAJOR ENTERPRISE FUND FINANCIAL STATEMENTS
Sewer/Wastewater Fund
To account for the costs of labor and material used in the maintenance, construction, and consumption of
sewer services.
Refuse Fund
To account for the costs of labor and materials used in the maintenance, construction, and consumption of
refuse services throughout the City.
153
City of Azusa
Combining Statement of Net Position
Non-Major Enterprise Funds
For the year ended June 30, 2017
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
ASSETS
Current:
Cash and investments 3,838,843$ 233,493$ 4,072,336$
Receivables:
Accounts 353,193 496,471 849,664
Notes and loans 878 - 878
Accrued interest 10,140 - 10,140
Prepaid costs 178 - 178
Restricted cash with fiscal agent 1,461,008 - 1,461,008
Total current assets 5,664,240 729,964 6,394,204
Noncurrent:
Capital assets - net of accumulated depreciation 9,937,258 - 9,937,258
Total noncurrent assets 9,937,258 - 9,937,258
Total assets 15,601,498 729,964 16,331,462
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 341,074 - 341,074
Total deferred outflows of resources 341,074 - 341,074
LIABILITIES
Current:
Accounts payable 103,333$ 584,079$ 687,412
Accrued liabilities 3,595 - 3,595
Accrued interest 57,020 - 57,020
Compensated absences - due within one year 60,382 - 60,382
Bonds and notes payable - due within one year 385,000 - 385,000
Total current liabilities 609,330 584,079 1,193,409
Noncurrent:
Bonds and note payable - due in more than one year 3,605,000 - 3,605,000
Net pension liability 1,414,858 - 1,414,858
Total noncurent liabilities 5,019,858 - 5,019,858
Total liabilities 5,629,188 584,079 6,213,267
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 87,181 - 87,181
Total deferred inflows of resources 87,181 - 87,181
NET POSITION
Net investment in capital assets 5,947,258 - 5,947,258
Restricted for debt service 1,461,008 - 1,461,008
Unrestricted 2,817,937 145,885 2,963,822
Total net position 10,226,203$ 145,885$ 10,372,088$
Business-Type Activities - Enterprise Funds
154
City of Azusa
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Non-Major Enterprise Funds
For the year ended June 30, 2017
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
OPERATING REVENUES:
Sales and service charges 2,750,999$ 3,697,476$ 6,448,475
Total operating revenues 2,750,999 3,697,476 6,448,475
OPERATING EXPENSES:
Administration and general 915,747 - 915,747
Treatment 646,016 - 646,016
Refuse collection - 3,566,846 3,566,846
Depreciation expense 496,328 - 496,328
Total operating expenses 2,058,091 3,566,846 5,624,937
OPERATING INCOME (LOSS)692,908 130,630 823,538
NONOPERATING REVENUES (EXPENSES):
Taxes - 667,619 667,619
Interest revenue 31,320 - 31,320
Interest expense (138,855) - (138,855)
Special franchise fees (56,157) - (56,157)
Total nonoperating revenues (expenses)(163,692) 667,619 503,927
INCOME (LOSS) BEFORE TRANSFERS 529,216 798,249 1,327,465
Transfer out (119,000) (805,420) (924,420)
Change in net position 410,216 (7,171) 403,045
Net position:
Beginning of year 9,815,987 153,056 9,969,043
End of year 10,226,203$ 145,885$ 10,372,088$
Business-Type Activities - Enterprise Funds
155
City of Azusa
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the year ended June 30, 2017
Total
Sewer/ Refuse Non-major
Wastewater Contract Proprietary
Fund Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 2,721,087$ 3,659,732$ 6,380,819$
Cash paid to suppliers for goods and services (665,237) (3,528,777) (4,194,014)
Cash paid to employees for services (913,394) - (913,394)
Net cash provided by (used in) operating activities 1,142,456 130,955 1,273,411
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:- -
Cash transfers out (119,000) (805,420) (924,420)
Net cash provided by noncapital financing activities (119,000) (805,420) (924,420)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Principal paid on capital debt (375,000) - (375,000)
Interest paid on capital debt (144,685) - (144,685)
Special franchise fees paid (56,157) - (56,157)
Taxes - 667,619 667,619
Net cash provided by (used in) capital and related financing activities (575,842) 667,619 91,777
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 22,989 - 22,989
Net cash provided by (used in) investing activities 22,989 - 22,989
Net increase (decrease) in cash and cash equivalents 470,603 (6,846) 463,757
CASH AND CASH EQUIVALENTS:
Beginning of year 4,829,248 240,339 5,069,587
End of year 5,299,851$ 233,493$ 5,533,344$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 3,838,843$ 233,493$ 4,072,336$
Cash with fiscal agent 1,461,008 - 1,461,008
Total 5,299,851$ 233,493$ 5,533,344$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) 692,908$ 130,630$ 823,538$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 496,328 - 496,328
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable (29,912) (37,744) (67,656)
(Increase) decrease in prepaid expense (178) - (178)
(Increase) decrease in deferred pension related outflows (258,497) - (258,497)
Increase (decrease) in accounts payable 72,946 38,069 111,015
Increase (decrease) in accrued liabilities (31,398) - (31,398)
Increase (decrease) in compensated absences 4,255 - 4,255
Increase (decrease) in net pension liability 281,981 - 281,981
Increase (decrease) in deferred pension related inflows (85,977) - (85,977)
Total adjustments 449,548 325 449,873
Net cash provided by (used in) by operating activities 1,142,456$ 130,955$ 1,273,411$
Business-Type Activities - Enterprise Funds
156
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a
designated department for other departments in the City on a cost reimbursement basis.
Consumer Services
To account for activities providing support to the City's enterprise activities.
Self-Insurance
To account for claim and risk management activities.
Central Services
To account for other activities that are provided to support all departments.
Equipment Replacement
To account for the rental of equipment to all City departments and for the accumulation of funds and
disbursements for equipment acquisitions. User charges include an amount necessary for the maintenance
and replacement of equipment.
IT Services
To account for the costs related to providing IT services to all City departments.
157
City of Azusa
Combining Statement of Net Position
Internal Service Funds
For the year ended June 30, 2017
Consumer Central
Services Self-Insurance Services
ASSETS
Current:
Cash and investments 1,333,430$ 1,581,040$ 3,309$
Receivables:
Accounts 246,030 125,000 96
Notes and loans 1,529 537 -
Accrued interest 105,183 4,084 -
Prepaid costs 203 65,014 -
Total current assets 1,686,375 1,775,675 3,405
Noncurrent:
Capital assets - net of accumulated depreciation 428,707 - 28,187
Total noncurrent assets 428,707 - 28,187
Total assets 2,115,082 1,775,675 31,592
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 990,249 29,380 -
Total deferred outflows of resources 990,249 29,380 -
LIABILITIES
Current:
Accounts payable 274,718 384,041 560
Accrued liabilities 5,582 (1,487) -
Accrued compensated absences - due within one year 237,829 1,175 -
Accrued claims and judgements - due within one year - 1,000,000 -
Total current liabilities 518,129 1,383,729 560
Noncurrent:
Accrued compensated absences - due in more than one year 31,773 - -
Accrued claims and judgements - due in more than one year - 2,232,622 -
Total OPEB liability 780,072 - -
Net pension liability 4,732,173 117,902 -
Total noncurent liabilities 5,544,018 2,350,524 -
Total liabilities 6,062,147 3,734,253 560
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 275,200 2,681 -
Total deferred inflows of resources 275,200 2,681 -
NET POSITION
Net investment in capital assets 428,707 - 28,187
Unrestricted (3,660,723) (1,931,879) 2,845
Total net position (3,232,016)$ (1,931,879)$ 31,032$
158
Equipment
Replacement IT Services Totals
18,980$ 232,357$ 3,169,116$
- - 371,126
- 549 2,615
50 - 109,317
- 82,874 148,091
19,030 315,780 3,800,265
277,481 - 734,375
277,481 - 734,375
296,511 315,780 4,534,640
- -
- 519,427 1,539,056
- 519,427 1,539,056
- 157,672 816,991
- (2,305) 1,790
- 90,151 329,155
- - 1,000,000
- 245,518 2,147,936
- 90,802 122,575
- - 2,232,622
- - 780,072
- 2,294,448 7,144,523
- 2,385,250 10,279,792
- 2,630,768 12,427,728
- 137,712 415,593
- 137,712 415,593
277,481 - 734,375
19,030 (1,933,273) (7,504,000)
296,511$ (1,933,273)$ (6,769,625)$
159
City of Azusa
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds
For the year ended June 30, 2017
Consumer Central
Services Self-Insurance Services
OPERATING REVENUES:
Sales and service charges 7,297,583$ 3,228,750$ -$
Miscellaneous 58 - -
Total operating revenues 7,297,641 3,228,750 -
OPERATING EXPENSES:
Administration and general 6,022,454 2,332,266 -
Source of supply 27,454 - -
Claims expense 808,034 1,983,873 -
Depreciation expense 114,688 - 1,492
Total operating expenses 6,972,630 4,316,139 1,492
OPERATING INCOME (LOSS)325,011 (1,087,389) (1,492)
NONOPERATING REVENUES (EXPENSES):
Interest revenue - 11,871 -
Loss on disposal of capital assets - - -
Gain on disposal of capital assets 650 - -
Total nonoperating revenues (expenses)650 11,871 -
INCOME (LOSS) BEFORE TRANSFERS 325,661 (1,075,518) (1,492)
Transfer in 132,335 - -
Transfer out (548,355) - -
Change in net position (90,359) (1,075,518) (1,492)
Net position:
Beginning of year, as restated (3,141,657) (856,361) 32,524
End of year (3,232,016)$ (1,931,879)$ 31,032$
160
Equipment
Replacement IT Services Totals
-$ 1,549,884$ 12,076,217$
- - 58
- 1,549,884 12,076,275
- 1,537,855 9,892,575
- - 27,454
- - 2,791,907
96,582 - 212,762
96,582 1,537,855 12,924,698
(96,582) 12,029 (848,423)
143 - 12,014
(20,344) - (20,344)
- - 650
(20,201) - (7,680)
(116,783) 12,029 (856,103)
- - 132,335
- - (548,355)
(116,783) 12,029 (1,272,123)
413,294 (1,945,302) (5,497,502)
296,511$ (1,933,273)$ (6,769,625)$
161
City of Azusa
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2017
Consumer Central
Services Self-Insurance Services
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 7,756,657 3,103,750 -
Cash paid to suppliers for goods and services (4,096,805) (3,319,586) -
Cash paid to employees for services (3,098,007) (83,093) -
Net cash provided by (used in) operating activities 561,845 (298,929) -
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:- - -
Cash transfers out (548,355) - -
Cash transfers in 132,335 - -
Net cash provided by noncapital financing activities (416,020) - -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (27,457) - -
Proceeds from sale of capital assets 650 - -
Net cash provided by (used in) capital and related financing activities (26,807) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received (81,515) 8,044 -
Net cash provided by (used in) investing activities (81,515) 8,044 -
Net increase (decrease) in cash and cash equivalents 37,503 (290,885) -
CASH AND CASH EQUIVALENTS:
Beginning of year 1,295,927 1,871,925 3,309
End of year 1,333,430$ 1,581,040$ 3,309$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)325,011$ (1,087,389)$ (1,492)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 114,688 - 1,492
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable 459,016 (125,000) -
(Increase) decrease in prepaid expense (203) (39,262) -
(Increase) decrease in deferred pension related outflows (503,624) (12,925) -
Increase (decrease) in accounts payable 166,229 29,003 560
Increase (decrease) in accrued liabilities (644,409) (5,952) (560)
Increase (decrease) in claims and judgements - 915,481 -
Increase (decrease) in compensated absences 44,982 (2,869) -
Increase (decrease) in total OPEB liability 42,331 - -
Increase (decrease) in net pension liability 713,404 24,959 -
Increase (decrease) in deferred pension related inflows (155,580) 5,025 -
Total adjustments 236,834 788,460 1,492
Net cash provided by (used in) by operating activities 561,845$ (298,929)$ -$
162
Equipment
Replacement IT Services Totals
- 1,550,676 12,411,083$
- (601,769) (8,018,160)
- (939,186) (4,120,286)
- 9,721 272,637
- -
- - (548,355)
- - 132,335
- - (416,020)
- - (27,457)
- - 650
- - (26,807)
92 - (73,379)
92 - (73,379)
92 9,721 (243,569)
18,888 222,636 3,412,685
18,980$ 232,357$ 3,169,116$
(96,582)$ 12,029$ (848,423)$
96,582 - 212,762
- 792 334,808
- (17,334) (56,799)
- (387,770) (904,319)
- 40,214 236,006
- (51,666) (702,587)
- - 915,481
- 11,086 53,199
- - 42,331
- 405,872 1,144,235
- (3,502) (154,057)
96,582 (2,308) 1,121,060
-$ 9,721$ 272,637$
163
City of Azusa
Agency Fund
Statement of Changes in Fiduciary Assets and Liabilities
Balance Balance
July 1, 2016 Additions Deductions June 30, 2017
Agency Fund
Assets:
Cash and investments 6,453,149$ \2,469,242$ -$ 8,922,391$
Accounts receivable 269,249 - (241,844) 27,405
Taxes receivable 48,554 57,095 - 105,649
Restricted cash and investments with fiscal agent - 4,170,102 - 4,170,102
Total assets 6,770,952$ 6,696,439$ (241,844)$ 13,225,547$
Liabilities:
Accounts payable 248,063$ -$ (33,055)$ 215,008$
Accrued liabilities 7,966 - (1,893) 6,073
Deposits payable 6,491,878 6,511,247 - 13,003,125
Due to other government 23,045 - (21,704) 1,341
Total liabilities 6,770,952$ 6,511,247$ (56,652)$ 13,225,547$
For the year ended June 30, 2017
164
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Water - Enterprise Fund
For the year ended June 30, 2017
Water
OPERATING REVENUES:
Residential sales 9,634,697$
Commercial sales 3,859,206
Industrial sales 2,721,338
Other sales 1,970,924
Fees 336,415
Other revenue 2,262,885
Total operating revenues 20,785,465
OPERATING EXPENSES:
Production 6,554,489
Transmission and distribution 2,358,303
Customer accounting and sales 4,687,136
Uncollectible accounts 31,356
Administration and general 811,916
Depreciation expense 3,762,278
Total operating expenses 18,205,478
OPERATING INCOME (LOSS)2,579,987
NONOPERATING REVENUES (EXPENSES):
Interest revenue 238,057
Interest expense (2,010,060)
Special franchise fees (363,046)
Gain on disposal of capital assets 2,055
Total nonoperating revenues (expenses)(2,132,994)
INCOME (LOSS) BEFORE TRANSFERS 446,993
Transfer out (190,000)
Change in net position 256,993
Net position:
Beginning of year, as restated 52,689,563
End of year 52,946,556$
#REF!
6,671,501
165
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Light - Enterprise Fund
For the year ended June 30, 2017
Light
OPERATING REVENUES:
Sale/electricity - residential 12,879,668$
Sale/electricity - commercial and industrial 22,500,241
Sale/electricity - other 1,465,251
Sale/electricity - resale 4,017,473
Other revenue 541,794
Total operating revenues 41,404,427
OPERATING EXPENSES:
Purchase power 23,411,006
Transmission/dispatching 3,623,981
Operation and maintenance 2,770,201
Uncollectible accounts 47,558
Administration and general 4,622,745
Depreciation expense 1,306,058
Total operating expenses 35,781,549
OPERATING INCOME (LOSS)5,622,878
NONOPERATING REVENUES (EXPENSES):
Interest revenue 243,461
Interest expense (187,631)
Special franchise fees (3,694,889)
Gain on disposal of capital assets 4,288
Total nonoperating revenues (expenses)(3,634,771)
INCOME (LOSS) BEFORE TRANSFERS 1,988,107
Transfer out (208,837)
Change in net position 1,779,270
Net position:
Beginning of year, as restated 44,421,049
End of year 46,200,319$
#REF!
6,671,501
166
CITY OF AZUSA
Statistical Section
Pages
Financial Trends
168-177
Revenue Capacity
178-191
Debt Capacity
192-200
Demographic and Economic Information
201-205
Operating Information
206-210
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 in 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.
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, 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.
167
CITY OF AZUSA
Table 1 - Net Position by Component
Last Ten Fiscal Years (accrual basis of accounting)
2008 2009 2010 2011
Governmental activities:
Net investment in capital assets 18,385,294$ 19,090,231$ 19,372,237$ 19,297,862$
Restricted 38,694,105 60,470,894 55,734,821 35,312,033
Unrestricted (31,815,388) (58,874,825) (67,047,309) (50,982,746)
Total governmental activities net position 25,264,011$ 20,686,300$ 8,059,749$ 3,627,149$
Business-type activities:
Net investment in capital assets 57,372,662$ 57,578,956$ 58,696,499$ 35,160,311$
Restricted 5,045,495 5,049,234 5,069,361 3,192,561
Unrestricted 67,473,534 64,014,418 61,221,682 85,047,584
Total business-type activities net position 129,891,691$ 126,642,608$ 124,987,542$ 123,400,456$
Primary government:
Net investment in capital assets 75,757,956$ 76,669,187$ 78,068,736$ 54,458,173$
Restricted 43,741,600 65,520,128 60,804,182 38,504,594
Unrestricted 35,656,146 5,139,593 (5,825,627) 34,064,838
Total primary government net position 155,155,702$ 147,328,908$ 133,047,291$ 127,027,605$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City of Azusa Finance Department
Fiscal Year
168
2012 2013 2014 2015 2016 2017
28,862,696$ 29,086,566$ 29,959,431$ 28,121,302$ 33,586,894$ 33,818,379$
5,306,039 8,800,537 9,222,166 10,658,744 12,664,389 11,262,725
23,447,281 18,107,479 (7,774,851) (46,416,171) (47,761,262) (67,285,615)
57,616,016$ 55,994,582$ 31,406,746$ (7,636,125)$ (1,509,979)$ (22,204,511)$
60,564,169$ 55,086,846$ 58,465,869$ 45,617,124$ 56,985,265$ 50,924,797$
10,845,193 11,554,302 9,845,901 15,085,506 11,448,778 16,722,108
53,464,644 55,694,676 46,533,746 42,093,086 36,790,964 38,640,042
124,874,006$ 122,335,824$ 114,845,516$ 102,795,716$ 105,225,007$ 106,286,947$
89,426,865$ 84,173,412$ 88,425,300$ 73,738,426$ 90,572,159$ 84,743,176$
16,151,232 20,354,839 19,068,067 25,744,250 24,113,167 27,984,833
76,911,925 73,802,155 38,758,895 (4,323,085) (10,970,298) (28,645,573)
182,490,022$ 178,330,406$ 146,252,262$ 95,159,591$ 103,715,028$ 84,082,436$
Fiscal Year
169
CITY OF AZUSA
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
2008 2009 2010 2011
Program Revenue:
Governmental activities:
Charges for services
General government 3,930,106$ 3,418,393$ 3,760,159$ 3,855,810$
Public Safety 755,186 681,943 871,900 713,846
Community development 1,697,467 1,358,872 1,659,057 1,915,741
Parks and recreation 685,468 1,127,077 1,179,080 997,277
Public Works 168,657 203,280 368,275 364,910
Operating grants and contributions 2,731,195 5,307,696 3,261,472 3,651,491
Capital grants and contributions 468,279 286,875 654,467 109,226
Total governmental activities
program revenues 10,436,358 12,384,136 11,754,410 11,608,301
Business-type activities:
Charges for services
Water 16,501,434 14,805,241 16,144,130 17,779,417
Light 35,998,389 34,496,805 35,192,941 39,189,980
Sewer/Wastewater 1,470,452 1,508,325 1,557,758 1,615,840
Refuse contract 2,996,275 2,968,742 2,933,390 3,062,700
Operating grants and contributions - - 84 -
Total business-type activities
program revenues 56,966,550 53,779,113 55,828,303 61,647,937
Total primary government
program revenues 67,402,908$ 66,163,249$ 67,582,713$ 73,256,238$
Expenses:
Governmental activities:
General government 11,582,357$ 15,047,013$ 16,368,337$ 12,198,991$
Public safety 18,772,865 20,459,265 19,458,795 20,187,914
Community development 4,178,449 5,690,458 4,041,516 3,472,237
Parks and recreation 3,737,791 4,083,565 3,950,786 4,184,626
Public works 5,494,887 4,577,435 4,688,537 5,539,866
Interest on long-term debt 4,757,068 6,224,638 7,274,723 7,380,598
Total governmental activities
expenses 48,523,417 56,082,374 55,782,694 52,964,232
Business-type activities:
Water 18,473,689 17,225,088 19,114,843 19,680,719
Light 38,827,637 36,939,301 39,803,690 40,083,680
Sewer/Wastewater 1,653,043 1,995,785 1,986,142 1,982,241
Refuse contract 3,247,734 3,028,270 2,924,303 2,962,395
Total business-type activities
expenses 62,202,103 59,188,444 63,828,978 64,709,035
Total primary government
program expenses 110,725,520 115,270,818 119,611,672 117,673,267
Net revenues (expenses):
Governmental activities (38,087,059) (41,491,520) (44,028,284) (41,355,931)
Business-type activities (5,235,553) (5,409,331) (8,000,675) (3,061,098)
Total net revenues (expenses) (43,322,612)$ (46,900,851)$ (52,028,959)$ (44,417,029)$
Fiscal Year
170
2012 2013 2014 2015 2016 2017
3,090,304$ 2,304,290$ 3,919,876$ 3,517,810$ 4,157,243$ 4,822,316$
721,032 705,140 829,054 741,551 821,281 774,218
2,615,631 2,831,860 3,296,987 3,044,683 2,463,012 3,094,335
1,046,584 1,090,771 1,181,561 1,226,392 1,188,778 487,842
838,958 476,506 525,343 961,875 739,521 833,440
3,267,287 2,121,638 3,836,479 13,926,073 6,435,839 4,289,559
137,102 2,988,760 442,727 398,905 328,662 935,622
11,716,898 12,518,965 14,032,027 23,817,289 16,134,336 15,237,332
20,062,118 21,604,435 21,762,242 21,515,397 20,317,053 20,785,465
40,962,648 42,377,694 45,001,748 46,222,264 40,464,630 41,404,427
2,223,876 2,480,008 2,566,676 2,636,707 2,679,660 2,750,999
2,976,946 2,954,842 3,058,956 3,145,396 3,465,932 3,697,476
- - - - - 667,619
66,225,588 69,416,979 72,389,622 73,519,764 66,927,275 69,305,986
77,942,486$ 81,935,944$ 86,421,649$ 97,337,053$ 83,061,611$ 84,543,318$
10,537,722$ 7,168,707$ 7,169,710$ 7,834,391$ 10,945,471$ 11,183,394$
20,449,077 20,077,868 21,082,420 21,279,644 22,689,580 24,610,769
3,272,401 3,053,950 2,569,284 2,384,308 2,605,120 3,170,213
4,146,245 3,453,469 3,752,518 3,878,961 4,546,965 4,365,600
8,818,083 4,173,502 5,356,694 5,019,152 5,331,169 4,404,636
2,244,315 471,835 1,330,555 699,155 517,395 361,493
49,467,843 38,399,331 41,261,181 41,095,611 46,635,700 48,096,105
19,364,355 19,199,120 18,345,227 21,497,271 19,429,769 20,511,527
39,115,161 44,040,193 45,011,550 44,328,679 41,383,802 39,464,774
2,083,756 4,828,680 2,434,295 2,368,124 2,131,684 2,220,602
2,851,882 2,835,041 2,938,255 3,042,337 3,342,897 3,533,695
63,415,154 70,903,034 68,729,327 71,236,411 66,288,152 65,730,598
112,882,997 109,302,365 109,990,508 112,332,022 112,923,852 113,826,703
(37,750,945) (25,880,366) (27,229,154) (17,278,322) (30,501,364) (32,858,773)
2,810,434 (1,486,055) 3,660,295 2,283,353 639,123 3,575,388
(34,940,511)$ (27,366,421)$ (23,568,859)$ (14,994,969)$ (29,862,241)$ (29,283,385)$
Fiscal Year
171
CITY OF AZUSA
Table 2 - Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis)
2008 2009 2010
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes, general purpose 10,372,529$ 13,518,253$ 10,032,979$
Transient occupancy taxes 243,261 226,268 200,840
Sales tax 6,328,962 6,202,335 4,716,305
Franchise taxes 5,654,896 5,821,976 5,595,423
Business licenses taxes 1,640,425 1,755,831 1,829,503
Utility users tax 3,302,442 3,260,191 3,059,121
Other taxes 1,397,618 1,131,885 1,102,339
Motor vehicle in lieu-unrestricted 232,989 157,012 137,557
Investment income 3,932,540 3,967,549 2,914,790
Other general revenues 2,702,680 707,536 441,956
Extraordinary gain/(loss on dissolution of redevelopment agency - - -
Transfers 4,392,846 2,249,387 1,386,380
Total governmental activities 40,201,188 38,998,223 31,417,193
Business-type activities:
Property taxes, general purpose 631,036 586,254 555,121
Investment income 4,954,367 2,579,973 6,201,289
Gain on sale of assets (38,373) 797 2,306
Transfers (4,392,846) (2,249,387) (1,386,380)
Miscellaneous 1,841,306 1,230,835 1,336,168
Total business-type activities 2,995,490 2,148,472 6,708,504
Total general revenues 43,196,678 41,146,695 38,125,697
Changes in net position:
Governmental activities 2,114,129 (2,493,297) (12,611,091)
Business-type activities (2,240,063) (3,260,859) (1,292,171)
Total primary government (125,934)$ (5,754,156)$ (13,903,262)$
The City of Azusa implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City of Azusa Finance Department
Fiscal Year
172
2011 2012 2013 2014 2015 2016 2017
12,108,155$ 9,856,354$ 8,312,351$ 8,023,547$ 8,531,515$ 9,134,084$ 10,719,463$
192,659 210,923 224,359 223,675 261,815 347,965 366,579
5,678,177 6,234,614 6,904,400 7,183,809 7,530,257 8,001,941 5,516,848
6,222,537 6,355,828 6,526,496 6,757,708 7,328,977 7,575,506 6,893,264
1,822,102 1,865,195 1,983,634 1,922,139 2,008,916 1,995,000 2,238,439
3,160,788 3,250,469 3,305,545 3,441,178 3,594,092 3,266,383 3,329,293
2,678,727 1,272,967 1,963,904 1,763,038 2,058,967 1,851,142 1,702,902
143,401 420,126 25,224 20,876 - - -
2,540,133 1,284,484 166,674 (423,898) 353,285 183,908 460,691
854,945 (50,068) 279,447 759,132 629,507 1,709,757 1,504,953
- 59,933,832 - - (4,113,065) - -
1,326,374 1,082,262 1,309,808 1,535,996 1,458,028 1,652,338 1,739,277
36,727,998 91,716,986 31,001,842 31,207,200 29,642,294 35,718,024 34,471,709
571,036 555,225 556,161 542,409 574,179 630,981 -
1,626,291 257,653 115,380 300,515 378,713 532,303 512,838
1,350 (1,966,003) (3,690) - - - -
(1,326,374) (1,082,262) (1,309,808) (1,535,996) (1,458,028) (1,652,338) (1,739,277)
358,891 884,535 359,573 399,293 224,680 2,347,066 -
1,231,194 (1,350,852) (282,384) (293,779) (280,456) 1,858,012 (1,226,439)
37,959,192 90,366,134 30,719,458 30,913,421 29,361,838 37,576,036 33,245,270
(4,627,933) 53,966,041 5,121,476 3,978,046 12,363,972 5,216,660 1,612,936
(1,829,904) 1,459,582 (1,768,439) 3,366,516 2,002,897 2,497,135 2,348,949
(6,457,837)$ 55,425,623$ 3,353,037$ 7,344,562$ 14,366,869$ 7,713,795$ 3,961,885$
Fiscal Year
173
CITY OF AZUSA
Table 3 - Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
2008 2009 2010
General fund:
Reserved 196,095$ 500,389$ 5,827,294$
Unreserved 13,753,667 11,914,867 3,777,753
Total general fund 13,949,762$ 12,415,256$ 9,605,047$
All other governmental funds:
Reserved 23,069,640$ 43,489,276$ 47,472,564$
Unreserved, reported in:
Special revenue funds 15,616,841 21,491,624 13,022,299
Capital projects funds 1,904,457 1,320,550 1,045,279
Debt service funds 502,244 482,915 482,548
Redevelopment agency (23,307,890) (36,129,562) (42,709,359)
Unassigned
Total all other governmental funds: 17,785,292$ 30,654,803$ 19,313,331$
General fund: 2011 2012 2013 2014 2015 2016 2017
Nonspendable 21,615,263$ 20,951,468$ 20,993,673$ 20,927,944$ 16,794,925$ 17,319,446$ 14,639,123$
Unassigned (5,311,304) (5,817,312) (4,690,928) (509,996) 2,752,257 5,833,733 10,424,782
Total general fund: 16,303,959$ 15,134,156$ 16,302,745$ 20,417,948$ 19,547,182$ 23,153,179$ 25,063,905$
Grants and Seizure:
Nonspendable 8,730$ 2,891$
Restricted - 1,609,588
Unassigned (2,459,180) (420,193)
Total grants and seizure:(2,450,450)$ 1,192,286$
All other governmental funds:
Nonspendable 14,892,551$ 8,038$ 23,729$ 11,363$ 10,431$ 4,428$ 3,074$
Restricted 23,297,599 11,062,074 9,005,070 9,222,166 10,499,020 12,659,961 13,166,548
Committed - - - - - - -
Unassigned (32,625,038) (187,467) (376,870) (125,576) (12,478) (35,499) (499,998)
Total all other governmental funds: 5,565,112$ 10,882,645$ 8,651,929$ 9,107,953$ 10,496,973$ 12,628,890$ 12,669,624$
GASB Statement No. 54 - Fund Balance Reporting and Government Fund Type Definition, was implemented in fiscal year 2010-2011.
Grants and Seizure was reclassified to Governmental Fund in fiscal year 2015-16.
Source: City of Azusa Finance Department
Fiscal Year
Fiscal Year
174
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175
CITY OF AZUSA
Table 4 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
2006 2007 2008 2009 2010
Revenues:
Taxes 26,387,805$ 28,984,072$ 29,190,305$ 31,265,067$ 27,033,859$
Assessments 2,166,435 2,638,293 2,661,618 2,930,897 3,027,016
Licenses and permits 433,673 481,994 532,775 381,993 472,389
Intergovernmental 3,617,152 3,609,169 3,387,074 5,960,103 4,064,951
Charges for services 2,484,513 2,565,974 3,008,524 2,734,773 3,185,660
Investment income 1,294,508 3,205,561 2,765,219 1,859,424 1,335,922
Fines and forfeitures 556,776 815,558 897,816 967,012 1,104,715
Contributions 154,636 106,592 99,211 106,450 113,363
Miscellaneous 166,677 422,313 3,001,938 713,547 573,008
Total Revenues 37,262,175 42,829,526 45,544,480 46,919,266 40,910,883
Expenditures:
Current:
General government 9,701,352 9,070,967 11,136,420 12,490,585 14,248,881
Public safety 15,111,854 16,813,699 18,534,126 26,948,793 19,144,169
Community development 2,948,683 10,455,704 4,166,223 5,191,932 3,271,672
Parks and recreation 2,902,603 3,054,964 3,388,218 3,607,838 3,519,626
Public works 2,772,437 2,964,749 3,666,010 3,847,822 3,963,820
Capital Outlay 2,982,756 3,333,934 4,847,786 3,493,096 2,804,345
Debt service:
Principal retirement 1,085,000 1,100,000 915,000 1,355,000 2,020,000
Interest and fiscal charges 2,624,113 3,319,471 4,392,178 5,298,820 7,115,425
- - 718,237 878,581 -
Total Expenditures 40,128,798 50,113,488 51,764,198 63,112,467 56,087,938
Excess (Deficiency) of revenues
over (under) expenditures (2,866,623) (7,283,962) (6,219,718) (16,193,201) (15,177,055)
Other Financing Sources (Uses):
Transfer in 12,513,835 8,891,433 51,422,808 25,925,067 10,710,775
Transfer out (11,849,629) (9,208,303) (47,179,912) (23,675,680) (9,362,595)
Notes and loans issued 232,038 166,711 20,820,182 25,879,924 391,867
Other financing sources - - (4,935,000) (323,410) -
Total Other Financing Sources
(Uses) 896,244 (150,159) 20,128,078 27,805,901 1,740,047
Extraordinary gain/(loss) on dissolution
of redevelopment agency - - - - -
Net change in fund balances (1,970,379)$ (7,434,121)$ 13,908,360$ 11,612,700$ (13,437,008)$
Debt service as a percentage of
noncapital expenditures 10.0% 9.4% 11.3% 11.2% 17.1%
Source: City of Azusa Finance Department
Bond issuance costs
Fiscal Year
176
2011 2012 2013 2014 2015 2016 2017
32,206,954$ 29,353,626$ 29,180,382$ 29,266,387$ 31,314,539$ 32,172,021$ 34,549,619$
3,098,219 2,201,117 1,605,028 2,216,830 1,299,713 1,875,271 1,941,549
610,298 1,270,221 1,369,901 1,586,117 1,600,109 1,096,325 1,167,805
3,829,513 3,482,499 2,856,210 4,469,748 4,674,688 3,635,890 6,317,682
3,059,369 3,399,276 3,288,109 4,396,994 4,647,255 4,505,844 3,775,160
994,621 872,118 157,022 131,515 346,266 442,987 990,976
119,111 978,829 989,616 1,343,318 1,343,809 1,328,383 1,068,510
157,930 109,255 64,461 84,870 10,864,485 99,594 78,836
- 1,492,038 384,382 870,199 678,623 1,759,473 1,563,941
45,373,595 43,158,979 39,895,111 44,365,978 56,769,487 46,915,788 51,454,078
10,623,623 10,070,713 7,168,707 6,762,467 6,684,724 7,545,443 10,919,440
19,824,369 20,379,672 20,077,868 20,877,090 21,779,069 22,490,820 22,560,287
3,423,224 3,223,201 3,053,950 2,564,915 2,364,558 2,588,161 2,970,565
3,729,125 3,770,465 3,453,469 3,561,491 3,589,952 4,212,160 3,916,250
4,204,180 7,358,644 4,173,502 4,245,273 4,033,352 4,304,379 4,286,018
2,762,698 1,554,151 2,348,624 2,204,482 1,725,176 6,433,318 1,128,736
2,494,212 2,615,717 1,479,367 1,706,996 12,160,286 1,230,000 1,420,000
7,295,680 2,537,665 471,835 401,265 417,459 562,530 405,392
- - - - - - -
54,357,111 51,510,228 42,227,322 42,323,979 52,754,576 49,366,811 47,606,688
(8,983,516) (8,351,249) (2,332,211) 2,041,999 4,014,911 (2,451,023) 3,847,390
24,569,629 5,900,632 6,003,156 6,310,394 6,174,749 6,839,073 7,852,410
(23,841,239) (4,818,370) (4,705,827) (4,777,269) (5,569,235) (5,316,340) (6,113,133)
986,314 1,305,892 - - - 3,570,000 -
- - - - - 168,899 4,307
1,714,704 2,388,154 1,297,329 1,533,125 605,514 5,261,632 1,743,584
- 10,087,999 - - (4,113,065) - -
(7,268,812)$ 4,124,904$ (1,034,882)$ 3,575,124$ 507,360$ 2,810,609$ 5,590,974$
19.0% 10.3% 4.9% 5.3% 24.6% 4.2% 3.9%
Fiscal Year
177
City of Azusa
Table 5 - Light Department
Electricity Sold by Type of Customer
Last Ten Fiscal Years
Fiscal Year Residential
Commercial/
Industrial Other Total
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$
2017 12,861,348 22,550,702 1,431,251 36,843,301$
Source: City of Azusa Light & Water Department
Type of Customer
178
City of Azusa
Table 6 - Electricity Rates
Last Ten Fiscal Years
Fiscal Monthly Rate per Rate per
Year Ended Base 0 - 250 >250
June 30 Rate kWh kWh
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
2017 3.81 0.1160 0.1487
NOTE:
Source: City of Azusa Light & Water Department
Rates are based on residential meter, which is the standard household meter size.
There is an additional charge for excess-use rate above normal demand.
179
City of Azusa
Table 7 - 10 Largest Electrical Customers
Last Seven Fiscal Years
2011 2012 2013
Percentage of Percentage of Percentage of
Light Total Light Light Total Light Light Total Light
Light Customer: Charges Revenues Charges Revenues Charges Revenues
APU Foundation 2,104,018$ 6.398% 1,741,024$ 4.913% 1,780,989$ 4.965%
Archcom Technology - 0.000% 223,383 0.630% - 0.000%
Artisan Screen Process 319,455 0.971% 301,378 0.851% - 0.000%
Azusa MRFTS - 0.000% - 0.000% - 0.000%
Azusa USD 954,045 2.901% 896,318 2.530% 856,373 2.387%
Azusa Western 241,542 0.734% 232,823 0.657% - 0.000%
Buena Vista Food Prod 312,836 0.951% 329,687 0.930% 333,594 0.930%
California Amforge Corp 213,367 0.649% 295,442 0.834% 651,233 1.815%
Calmat Cite 2353-P3 - 0.000% - 0.000% - 0.000%
City of Azusa 1,112,047 3.382% 1,045,326 2.950% 1,206,165 3.362%
City of Glendora 575,089 1.749% 72,098 0.203% 679,753 1.895%
Costco Wholesale Corp. 612,630 1.863% 613,230 1.731% 642,560 1.791%
Criterion Catalyst & Tech LP 181,832 0.553% - 0.000% - 0.000%
Hansen's Juices (Naked Juice) - 0.000% - 0.000% - 0.000%
LA County Metro Transporation
Authority - 0.000% - 0.000% - 0.000%
Morris Partnership 156,898 0.477% 226,681 0.640% - 0.000%
Northrop Grumman Sys. 504,436 1.534% 468,774 1.323% 366,623 1.022%
Rainbird Corp./CA Div. 933,722 2.839% 193,342 0.546% - 0.000%
S & S Foods LLC 1,444,281 4.392% 1,386,170 3.912% 1,584,047 4.416%
Stater Bros Market - 0.000% 145,484 0.411% - 0.000%
Target Corporation - 0.000% 301,707 0.851% - 0.000%
T H Molding Corporation - 0.000% 401,075 1.132% - 0.000%
Thermal Remediation Solutions 195,798 0.595% 154,795 0.437% - 0.000%
Verizon Wireless Inc 601,882 1.830% 894,493 2.524% 1,064,241 2.967%
Total 10,463,878$ 31.819% 9,923,230$ 28.004% 9,165,578$ 25.866%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
Fiscal Year
180
2014 2015 2016 2017
Percentage of Percentage of Percentage of Percentage of
Light Total Light Light Total Light Light Total Light Light Total Light
Charges Revenues Charges Revenues Charges Revenues Charges Revenues
1,802,237$ 4.943% 1,825,551$ 4.697% 1,745,792$ 4.867% 1,717,597$ 4.662%
- 0.000% - 0.000% - 0.000% - 0.000%
546,126 1.498% 477,290 1.228% - 0.000% - 0.000%
- 0.000% 597,615 1.537% 587,778 1.639% 589,515 1.600%
883,569 2.423% 902,905 2.323% 871,002 2.428% 841,194 2.283%
- 0.000% - 0.000% - 0.000% - 0.000%
357,445 0.980% 382,480 0.984% - 0.000% - 0.000%
- 0.000% - 0.000% 270,488 0.754% 273,803 0.743%
- 0.000% - 0.000% 451,282 1.258% 442,621 1.201%
1,347,507 3.696% 1,228,641 3.161% 1,166,557 3.252% 1,249,473 3.391%
613,336 1.682% 479,889 1.235% 540,173 1.506% 693,404 1.882%
646,887 1.774% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% 464,543 1.261%
- 0.000% - 0.000% - 0.000% - 0.000%
482,780 1.324% 466,673 1.201% 503,809 1.405% 491,900 1.335%
- 0.000% - 0.000% - 0.000% - 0.000%
1,679,420 4.606% 1,645,159 4.233% 1,672,106 4.662% 1,728,231 4.691%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
1,205,326 3.306% 1,357,641 3.493% 1,265,361 3.528% - 0.000%
9,564,633$ 26.233% 9,363,844$ 24.090% 9,074,348$ 25.299% 8,492,281$ 23.050%
Fiscal Year
181
City of Azusa
Table 8 - Water Sold by Type of Customer
Last Ten Fiscal Years
Fiscal Year Residential
Commercial Industrial Other (2)Total
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$
2017 9,614,576 3,693,444 2,918,906 1,471,927 17,698,853$
Source: City of Azusa Light & Water Department
Type of Customer
182
City of Azusa
Table 9 - Water Rates
Last Ten Fiscal Years
Fiscal Monthly Tier 1Tier 2Tier 3
Year Ended Base Rate per Rate per Rate per
Activity Rate CCF CCF CCF
0-17 CCF >17 CCF
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
0-4 CCF 5-15 CCF >15 CCF
2017 14.58 1.050 1.714 2.162
NOTE:
(1) Rates are based on 3/4" meter, which is the standard household meter size. There is an additional
change for excee-use rate above normal demand.
(2) Tiers changed from 17 to 12 in July 2009.
(3) A Phase III Drought was declared effective May 1, 2014, where a third tier was implemented.
(4) New rates were implented for FY 2016-17.
183
City of Azusa
Table 10 - Largest Water Customers
Last Eight Fiscal Years
2010 2011 2012 2013
Percentage of Percentage of Percentage of Percentage of
Water Total Water Water Total Water Water Total Water Water Total Water
Water Customer: Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 131,298$ 0.843% 212,880$ 1.278% 126,737$ 0.742% 130,761$ 0.721%
Azusa Carefree Association 43,429 0.279% 52,285 0.314% 65,984 0.386% - 0.000%
Azusa Greens Country Club 119,771 0.769% 114,596 0.688% 131,809 0.772% 163,455 0.901%
Azusa USD 263,852 1.695% 304,265 1.827% 285,883 1.674% 390,372 2.152%
Azusa Western 328,989 2.113% 244,528 1.468% 259,555 1.520% 262,656 1.448%
Calmat Site #1055-A - 0.000% 54,439 0.327% 36,368 0.213% - 0.000%
Citrus College 43,123 0.277% 45,507 0.273% 47,347 0.277% 49,133 0.271%
City of Azusa 94,955 0.610% 141,459 0.849% 137,730 0.807% 150,954 0.832%
Covina Valley USD 74,237 0.477% 42,644 0.256% 110,587 0.648% 167,684 0.924%
Hector Perales 280,785 1.804% - 0.000% - 0.000% - 0.000%
Lovin Oven - 0.000% 47,099 0.283% 52,250 0.306% - 0.000%
Mike Nijjar-060 71,217 0.457% - 0.000% 79,676.00 0.467% - 0.000%
Miller Brewery 1,280,978 8.229% 1,149,331 6.902% 1,126,387 6.597% 1,155,227 6.369%
Mountain Cove 72,707 0.467% - 0.000% 68,138 0.399% - 0.000%
NCI 56,389 0.362% 64,368 0.387% 68,253 0.400% - 0.000%
Ready Pac 431,649 2.773% 499,358 2.999% 533,105 3.122% 556,493 3.068%
S&S Foods LLC 83,896 0.539% 113,343 0.681% 122,666 0.718% 132,658 0.731%
Southern California Edison - 0.000% - 0.000% 34,983 0.205% - 0.000%
Villa Azusa Association - 0.000% - 0.000% 59,898 0.351% - 0.000%
Vulcan Materials - 0.000% - 0.000% - 0.000% - 0.000%
Total 3,377,276$ 21.695% 3,086,102$ 18.532% 3,347,356$ 19.604% 3,159,393$ 17.418%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
Fiscal Year
184
2014 2015 2016 2017
Percentage of Percentage of Percentage of Percentage of
Water Total Water Water Total Water Water Total Water Water Total Water
Charges Revenues Charges Revenues Charges Revenues Charges Revenues
138,644$ 11.328% 121,552$ 10.545% 142,796$ 6.256% 174,221 0.984%
- 0.000% 52,656.00 4.568% - 0.000% - 0.000%
157,909 12.903% 163,734 14.205% 205,146 8.988% 179,498 1.014%
380,303 31.074% 309,041 26.811% 303,127 13.281% 398,863 2.254%
251,656 20.563% 277,779 24.099% 392,150 17.181% 322,098 1.820%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
157,052 12.833% 116,061 10.069% 170,869 7.486% 215,483 1.217%
142,356 11.632% 145,329 12.608% 137,576 6.027% 140,192 0.792%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
1,068,819 87.332% 957,677 83.084% 928,794 40.692% 977,763 5.524%
- 0.000% - 0.000% 126,479.00 5.541% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
546,810 44.679% 438,847 38.073% 564,237 24.720% 618,202 3.493%
129,093 10.548% 173,338 15.038% 129,519 5.674% 162,258 0.917%
- 0.000% - 0.000% - 0.000% - 0.000%
- 0.000% - 0.000% - 0.000% - 0.000%
51,760 4.229% - 0.000% - 0.000% - 0.000%
3,024,402$ 16.936% 2,756,014$ 16.010% 3,100,693$ 135.846% 3,188,578$ 18.016%
Fiscal Year
185
CITY OF AZUSA
Table 11 - Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousand of dollars)
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
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%
2017 2,952,542,573 310,843,612 963,889,518 4,227,275,703 0.14920 4,227,275,703 100.0%
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.
186
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187
CITY OF AZUSA
Table 12 - Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
2008 2009 2010 2011 2012
City Direct Rates:
General City 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$
Redevelopment Agency 1.02976 1.01800 1.01800 1.01800 1.01800
Total Direct Rate 0.31890 0.32698 0.33638 0.34228 0.34311
Overlapping Rates:
Azusa Unified School District 0.06042 0.03603 0.03909 0.05695 0.05628
Citrus Community College District 0.01611 0.02441 0.02397 0.02516 0.02447
Covina Valley Unified School District 0.07870 0.07863 0.08592 0.09003 0.08999
Duarte Unified School District 0.06063 0.06739 0.07256 0.07542 0.11237
Metropolitan Water District 0.02000 0.01800 0.01800 0.01800 0.01800
Mt. San Antonio College 0.01750 0.02333 0.02571 0.02636 0.02642
Total Tax Rate 0.40257 0.39700 0.41446 0.44113 0.47674
(1)The Redevelopment Agency dissolution by the State of California caused the tax
allocation bonds to be transferred to the Successor Agency and is a fiduciary fund.
(2)FY 2016 Restated
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
Source: L.A. County Assessor 2007/08 - 2016/17 Tax Rate Table
Fiscal Year
This 1.00% is shared by all taxing agencies
for which the subject property resides
within. In addition to the 1.00% fixed
Total Direct Rate is the weighted average of all individual direct rates applied by the
City. The Direct Rate percentages presented in the columns above is not the sum of the
General City Rate and the Redevelopment Agency Rate (RDA).
General fund tax rates are representative and based upon the direct and overlapping
rates for the largest General Fund tax rate area by net taxable value.
RDA rate is based on the largest RDA tax rate area and includes only rates from
indebtedness adopted prior to 1989 per California State statute. RDA direct and
overlapping rates are applied only to the incremental property values.
188
2013 2014 2015 2016 2017
0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$
(1) (1) (1) (1) (1)
0.33678 0.13976 0.13961 0.13918 (2)0.13920
0.04641 0.03765 0.04468 0.11479 (2)0.10430
0.02590 0.02226 0.02327 0.01641 (2)0.02406
0.09500 0.11472 0.11426 0.11062 (2)0.12581
0.12657 0.12283 0.14263 0.14193 (2)0.14398
0.01800 0.01800 0.01800 0.01800 (2)0.02300
0.02896 0.02023 0.02129 0.02154 (2)0.02400
0.49005 0.48490 0.51334 0.57250 (2)0.59436
Fiscal Year
189
City of Azusa
Table 13 - Principal Property Tax Payers (Top Ten)
Current Year and Ten Years Ago
2017 2008
Percentage of Percentage of
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation 104,108,138 2.46% 69,395,298 2.15%
Rainbird Corp/CA Div. 36,559,879 0.86% 41,231,042 1.28%
PPF Industrial 823 8th Street 33,511,670 0.79% 29,262,807 0.91%
Citrus Crossing Properties Fee 30,174,440 0.71% 0.00%
10th Street XC LLC 26,456,126 0.63% 0.00%
Azusa Land Reclamation Inc. 23,808,105 0.56% 0.00%
Azusa Pacific University 23,087,447 0.55% 64,661,138 2.00%
Cemex Inc 21,589,195 0.51% 0.00%
S & S Foods LLC 21,431,659 0.51% 0.00%
South Decatur LP 20,782,813 0.49% 0.00%
Azusa Land Partners LLC 0.00% 149,678,144 4.63%
Starfield Azusa Heritage Oaks LLC 0.00% 47,040,082 1.46%
PLC Edgemont LLC 0.00% 22,555,654 0.70%
Criterion Catalyst Company LP 0.00% 19,259,035 0.60%
VPM Soldano Senior Village LP 0.00% 18,377,740 0.57%
Costco Wholesale Corporation 0.00% 18,227,726 0.56%
341,509,472$ 8.08% 479,688,667$ 14.85%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency/Successor Agency.
Source: HdL Coren & Cone - Page 6 of 2016-17 Property Data
190
CITY OF AZUSA
Table 14 - Property Tax Levies and Collections
Last Ten Fiscal Years
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
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%
2017 4,465,379 4,408,195 98.7% 46,744 4,454,939 99.8%
Source: County of Los Angeles Auditor-Controller and
City of Azusa Finance Department
191
CITY OF AZUSA
Table 15 - Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Certificate Tax Taxable Unamortized Total
Ended of Allocation Pension Premiums/ Governmental
June 30 Loans Participation
Bonds (1)Funding Bonds (2)(Discounts) Activities
2007 8,899,066 4,120,000 24,271,206 - - 37,290,272
2008 8,879,247 3,910,000 39,546,698 - - 52,335,945
2009 8,974,172 3,695,000 57,056,201 7,215,000 - 76,940,373
2010 9,366,038 3,480,000 55,814,889 6,735,000 - 75,395,927
2011 9,685,015 3,255,000 54,768,014 6,180,000 - 73,888,029
2012 10,005,461 3,025,000 - (6 5,555,000 - 18,585,461
2013 10,403,644 2,785,000 - (6 4,855,000 - 18,043,644
2014 10,700,656 2,540,000 - 4,075,000 - 17,315,656
2015 - (8 2,285,000 - 3,205,000 - 5,490,000
2016 - 5,590,000 (9 - 2,240,000 179,828 7,830,000
2017 - 5,235,000 (9 - 1,175,000 158,030 6,568,030
(1)The Redevelopment Agency issued $9,051,416 of new TABS in 2005, $15,780,000 2007 Series A Merged
Project Area TABS and $4,790,000 Series B Merged Project area TABS,$6,715,000 2008 Series A Merges
Projected Area TABS, and $11,580,000 2008 Housing Tax Allocation Bonds Series B.
(2)The City issued $7,215,000 of taxable pension funding bonds in 2008
(3)The Light Fund issued $11,995,000 of new Certificates of Participation in 2003; issued refunding revenue
bonds of $5,820,000 in 2012.
(4)The Water Fund replaced its Revenue Bond with Certificates of Participation in December 2003; issued
refunding revenue bonds of $8,715,000 in 2012, and refunded the 2006 bonds with 2015 issuance.
(5)Information not available
(6)The Redevelopment Agency dissolution by the State of California caused the tax allocation bonds to be
transferred to the Successor Agency and is a fiduciary fund.
(7)The Sewer Fund acquired an installment sale agreement loan of $5,630,000 in 2011 that includes the
refunding of 1994 COPs.
(8)The term of the loan expired and the remaining balance was forgiven.
(9)Includes 2003 COPs and 2016 T.R.I.P installment agreement.
Source: City of Azusa Finance Department
192
Business-type Activities
Certificate Unamortized Total Total Percentage of Percentage of
of Revenue Premiums/ Business-type Primary Assessed Personal
Loans(7)Participation (3)Bonds (4)(Discounts) Activities Governmental Values Income
- 31,110,000 54,850,000 - 85,960,000 123,250,272 4.06% 14.49%
- 29,825,000 54,850,000 - 84,675,000 137,010,945 4.25% 15.89%
- 28,500,000 54,850,000 - 83,350,000 160,290,373 4.52% 19.00%
- 27,125,000 54,570,000 - 81,695,000 157,090,927 4.57% 18.02%
- 25,690,000 54,275,000 - 79,965,000 153,853,029 4.75% 18.00%
5,630,000 3,070,000 68,500,000 - 77,200,000 95,785,461 2.99% 10.85%
5,405,000 2,540,000 68,180,000 - 76,125,000 94,168,644 2.90% 11.12%
5,080,000 1,985,000 67,380,000 - 74,445,000 91,760,656 2.68% 10.85%
4,730,000 1,400,000 65,445,000 - 71,575,000 77,065,000 2.09% 8.95%
4,365,000 780,000 60,205,000 3,836,045 69,186,045 77,016,045 1.94% 8.48%
3,990,000 130,000 58,320,000 3,589,433 66,029,433 72,597,463 1.72%(5)
193
CITY OF AZUSA
Table 16 - Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Certificates Tax Debt per
Ended of Allocation City
June 30 Participation Bonds Total Capita
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 52
2015 2,285,000 (1)2,285,000 46
2016 2,020,000 (1)2,020,000 41
2017 1,745,000 (1)1,745,000 35
(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
194
City of Azusa
Table 17 - Direct and Overlapping Debt
June 30, 2017
Percentage Net
Gross Bonded Applicable Bonded
Debt Balance To City Debt
METROPOLITAN WATER DISTRICT 36,281,674 0.121 43,935
CITRUS CCD DS 2004 2009 SERIES C 5,630,302 16.084 905,555
CITRUS CCD DS REF BOND SERIES 2013 11,525,000 16.084 1,853,635
CITRUS CCD DS 2004 SERIES 2014D 18,937,251 16.084 3,045,791
CITRUS CCD DS 2004, 2015 SERIES E 10,005,000 16.084 1,609,164
CITRUS CCD DS REF BONDS 2015 SERIES A 48,185,000 16.084 7,749,881
MT. SAN ANTONIO CCD DS 2001, 2008 SERIES D 394,812 0.032 127
MT. SAN ANTONIO CCD DS 2008 SERIES 13A 200,561,691 0.032 64,291
MT. SAN ANTONIO CCD DS 2008 SERIES 2013B 8,460,000 0.032 2,712
MT. SAN ANTONIO CCD DS 2013 REF SERIES A 67,410,000 0.032 21,609
MT. SAN ANTONIO CCD DS 2013 REF SERIES B 40,990,000 0.032 13,140
MT. SAN ANTONIO CCD DS 2008 SERIES 2015C 19,500,000 0.032 6,251
MT. SAN ANTONIO CCD DS 2015 REF BONDS 19,130,000 0.032 6,132
AZUSA UNIFIED 2002 SERIES 2007 30,340,943 66.225 20,093,308
AZUSA UNIFIED REFUND BOND 2002 SERIES 2011 17,270,000 66.225 11,437,068
AZUSA UNIFIED 2014 SERIES A 47,625,000 66.225 31,539,683
COVINA VALLEY USD DS 2001 SERIES B 12,954,772 0.308 39,900
COVINA VALLEY USD DS 2006, 07 SERIES B 2,762,032 0.308 8,507
COVINA VALLEY USD DS 2001 REFUND 2010 SERIES A 11,020,000 0.308 33,941
COVINA VALLEY USD DS 2012 SERIES A 26,235,000 0.308 80,803
COVINA VALLEY USD DS 2013 REF BONDS 38,635,000 0.308 118,995
COVINA VALLEY USD DS 2012 SERIES B 36,920,000 0.308 113,713
COVINA VALLEY USD DS 2012 SERIES C 64,410,000 0.308 198,381
DUARTE USD DS 1998 SERIES B 2,589,717 0.438 11,343
DUARTE USD DS 1998 SERIES C 4,450,383 0.438 19,492
DUARTE USD DS 1998 SERIES E 3,614,534 0.438 15,831
DUARTE USD DS REFUNDING 1998, 2010 SERIES A 1,665,000 0.438 7,293
DUARTE USD DS 2010 SERIES A 11,307,314 0.438 49,525
DUARTE USD DS 2010 SERIES B 18,238,932 0.438 79,885
DUARTE USD DS 2013 REF BONDS 1,805,000 0.438 7,906
DUARTE USD DS 2010 SERIES C 26,993,307 0.438 118,228
Total Overlapping Debt 79,296,025
2016/17 Assessed Valuation: $3,289,268,366 After Deducting $938,007,337 Incremental Value.
Debt to Assess Valuation Ratios: Direct Debt 0.00%
Overlapping Debt 2.41%
Total Debt 2.41%
Source: HdL Coren & Cone
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of
overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of
another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed
value.
195
City of Azusa
Table 18 - Legal Debt Margin Information
Last Ten Fiscal Years
2008 2009 2010 2011
Assessed valuation 2,588,959,025$ 2,548,482,077$ 2,292,870,440$ 2,252,687,451$
Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 647,239,756 637,120,519 573,217,610 563,171,863
Debt limit percentage 15% 15% 15% 15%
Legal debt limit 97,085,963 95,568,078 85,982,642 84,475,779
Amount of debt applicable to debt limit (1)- - - -
Legal debt margin 97,085,963 95,568,078 85,982,642 84,475,779
Source: City of Azusa - Finance Department
Fiscal Year
(1) Total Bonded debt issued by the City, excluding certificates of participation, tax allocation bonds, special
assignment bonds, revenue bonds payable from enterprise funds, and pledge mortgage revenues and revenue bonds
issued by entities other than the City of Azusa.
196
2012 2013 2014 2015 2016 2017
2,297,922,448$ 2,459,261,962$ 2,661,768,903$ 2,865,858,608$ 3,038,069,746$ 3,249,119,133$
25% 25% 25% 25% 25% 25%
574,480,612 614,815,491 665,442,226 716,464,652 759,517,437 812,279,783
15% 15% 15% 15% 15% 15%
86,172,092 92,222,324 99,816,334 107,469,698 113,927,615 121,841,967
- - - - - -
86,172,092 92,222,324 99,816,334 107,469,698 113,927,615 121,841,967
Fiscal Year
197
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage
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
2017 21,023,522 14,465,124 6,558,398 1,885,000 2,206,854 4,091,854 1.60
(1)Calculation of debt coverage is in accordance with covenants set for in 2012 Series A Refunding Revenue Bonds.
(2)Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(3)Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(4)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
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
2017 41,647,888 34,487,296 7,160,592 650,000 200,974 850,974 8.41
(1)Calculation of debt coverage in accordance with covenants set for in 2003 Certificates of Participation Series C and 2012 Series B
Refunding Revenue Bonds.
(2)Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(3)Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
Source: City of Azusa Administrative Services-Finance Department
REVENUE BONDS - WATER FUND(1)
CERTIFICATES OF PARTICIPATION AND REVENUE BONDS - ELECTRIC FUND (1)
198
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage (continued)
Last Ten Fiscal Years
Operating Debt Service Requirements
Fiscal Year and Non- Net Revenue
Ended Gross Operating Available for
June 30 Revenues
Expenses (1)Debt Service Principal Interest Total Coverage
2008 1,671,968 1,195,146 476,822 95,000 123,547 218,547 2.18
2009 1,636,336 1,518,931 117,405 100,000 120,611 220,611 0.53
2010 1,642,481 1,545,220 97,261 105,000 123,892 228,892 0.42
2011 1,672,986 1,543,754 129,232 115,000 106,313 221,313 0.58
2012 2,225,335 1,888,871 336,464 - 33,110 33,110 10.16
2013 2,500,116 4,573,251 (2,073,135) 225,000 188,568 413,568 (5.01)
2014 2,577,662 2,202,296 375,366 325,000 179,595 504,595 0.74
2015 2,659,370 1,713,886 945,484 350,000 168,565 518,565 1.82
2016 2,709,754
(2 1,437,262 1,272,492
(2)365,000 156,833 521,833 2.44
2017 2,782,319 1,562,344 1,219,975 375,000 144,685 519,685 2.35
(1)Excludes interest and depreciation expense.
(2)Restated
Source: City of Azusa Finance Department
REVENUE BONDS - SEWER FUND
199
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage - Tax Allocation Bonds - Redevelopment Agency
Last Ten Fiscal Years
Debt Service Requirements
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Total Coverage
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
2017 2,229,989 2,067,334 2,024,791 4,092,125 0.54
Page 41 Page 102 Page 41
Source: City of Azusa Finance Department
200
CITY OF AZUSA
Table 21 - Demographic and Economic Statistics
Last Ten Calendar Years
Per Capita
Calendar City County Personal Personal Unemployment
Year Population Population (1)Income Income Rate(1)
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 9.6%(3)
2011 46,618 9,889,520 854,741,000 18,335 9.3%
(3)
2012 47,586 9,958,091 882,863,000 18,553 8.3%
2013 48,385 10,017,068 847,221,000 17,510 7.4%
(3)
2014 48,405 10,053,995 845,345,000 17,464 6.2%
2015 49,485 10,116,705 861,078,000 17,400 5.0%
(3)
2016 49,762
(3)10,170,292 907,890,000 18,244 3.9%
(3)
2017 49,628 10,137,915
(2) (2)3.3%
Sources: HdL Coren & Cone, Los Angeles County Assessor
(1) U.S. Department of Census and State Department of Finance
(2) Data unavailable
(3) Data restated based on final rates from State of California EDD
201
City of Azusa
Table 22 - Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Azusa Unified School District* 1804 1 7.39% 1600 1
(2)
Azusa Pacific University 1422 2 5.83% 900 3
(2)
Northrop Grumman 901 3 3.69% 1100 2
(2)
City of Azusa 357 4 1.46% 522 4
(2)
Costco Wholesale Corporation 324 5 1.33% 311 5
(2)
S&S Foods LLC 300 6 1.23%
(2)
Hanson Distribution Company 220 7 0.90% 75 10
(2)
OJ Insulation 165 8 0.68%
(2)
Target Store 155 9 0.64%
(2)
Buena Vista Food Products 140 10 0.57%
(2)
Berger Bros. 0.00% 300 6
(2)
Pacific Precision Metals 0.00% 250 7
(2)
Tru Wood Products 0.00% 160 8
(2)
Vulcan 0.00% 100 9
(2)
Total of Top Employers 5,788 5,318
Total Employees in City 24,400 (1)- (2)
Sources:
MuniServices, LLC
2007-08 previously published CAFR
Results based on direct correspondence with city's local businesses.
*Includes all school district employees (substitutes, part-time, non-teaching, etc.)
(1) Total City Labor Force provided by EDD Labor Force Data
(2)Data not available
2016-17 2007-08
202
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203
City of Azusa
Table 23 - Full-time and Part-time Employees by Function
Last Ten Fiscal Years
Function 2008 2009 2010 2011 2012
General government 44.698 50.348 49.261 48.411 30.934
Public safety 96.530 99.035 98.945 97.395 88.750
Community development 15.441 15.985 16.376 16.196 14.197
Parks and recreation 48.211 51.650 55.306 56.557 48.023
Public works 23.132 31.115 31.115 31.115 30.058
Water 36.350 44.425 44.025 43.775 42.625
Electric 32.350 36.125 37.725 36.475 37.625
Sewer/Wastewater 6.000 10.000 10.250 10.250 10.230
Total 302.712 338.683 343.003 340.174 302.442
Source: City of Azusa Finance Department
Assigned Full-Time Equivalent (FTE) Totals
Fiscal Year
204
2013 2014 2015 2016 2017
33.593 31.146 31.146 25.821 49.775
97.570 91.750 91.750 95.200 94.500
14.651 15.533 15.533 15.462 17.462
45.407 49.317 49.317 50.260 37.127
30.265 27.181 27.181 30.259 30.233
43.275 46.617 46.617 44.330 27.300
37.975 32.492 32.492 32.170 56.086
9.570 7.540 7.540 8.040 7.235
312.306 301.576 301.576 301.541 319.718
Fiscal Year
205
CITY OF AZUSA
Table 24 - Operating Indicators by Function
Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013
Police:
Calls for service 56,166 56,610 54,896 54,734 57,210 57,637
Parking citations issued 4,833 9,881 9,801 8,188 6,515 7,680
Public Works:
Street resurfacing (lineal miles) 13.3 14.3 2.5 6.0 4.2 4.3
Parks and recreation:
Number of recreation classes 84 196 310 56 73 101
Number of facility rentals 1,492 706 827 829 868 874
Water:
Number of service connections 22,868
(2)23,014 (2)23,036 (2)23,100 (2)23,104 (2)23,302
Average daily consumption 23,296 22,832 21,517 20,230 20,819 22,179
(hundred cubic feet)
Light:
Number of service connections 15,650 15,403 15,276
(2)15,362 (2)15,567 (2)15,749
Average daily consumption 691,070 693,469 672,920 654,050 648,020 677,871
(kWh)
Sewer:
Number of service connections 14,402
(2)14,073 (2)14,335 (2)14,071 (2)15,235 (2)15,374
Refuse:
Number of residential customers 12,053
(2)11,127 (2)11,254 (2)11,123 (2)11,293 (2)11,652
Average daily collection 114 122 184 177 178 179
(thousands of pounds)
(1)Information not available
(2)Restated number of service connections beginning in FY 2006 to number of billed accounts and
accounted for customers outside the City that are billed every 2 months.
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
Fiscal Year
206
2014 2015 2016 2017
54,363 44,842 49,007 43,933
6,846 5,057 5,788 3,809
5.3 3.0 1.2 1.1
211 177 584 552
809 866 933 1,223
23,597 (2)23,871 (2)29,934 (2)24,156 (2)
21,974 19,438 16,958 18,077
15,955 (2)16,466 (2)16,740 (2)16,555 (2)
685,699 705,100 695,068 701,302
15,374 (2)16,074 (2)15,968 (2)16,002 (2)
11,866 (2)12,128 (2)12,234 (2)12,439 (2)
180 185 193 187
Fiscal Year
207
CITY OF AZUSA
Table 25 - Capital Asset Statistics by Function
Last Ten Fiscal Years
2008 2009 2010 2011 2012
Police:
Stations 11111
Public Works:
Streets (lineal miles) 170 170 171 170 174
Traffic signals 52 52 53 52 53
Parks and recreation:
Parks 13 13 13 13 15
Park acreage 60 61 61 61 64
Community centers 33333
Water:
Water mains (miles) 311 312 315 315 315
Number of fire hydrant 2,585 2,594 2,594 2,600 2,810
Maximum daily capacity 40,000 40,000 40,000 40,000 70,500
(hundred cubic feet)
Light:
Metered Streetlights 65 65 65 65 65
Daily consumption (kWh) 169 169 169 162 162
UnMetered Streetlights
Daily consumption (kWh)
Sewer:
Sanitary sewers (miles) 61 61 61 61 80
Storm sewers (miles) 15 15 15 15 15
Maximum daily treatment capacity 48 48 48 48 48
(cubic feet per second)
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
Fiscal Year
208
2013 2014 2015 2016 2017
11111
176 177 178 178 179
53 55 56 57 57
16 17 20 21 22
64 77 84 85 87
33333
315 315 315 281 281
2,815 2,820 2,820 2,444 2,444
70,500 70,500 70,500 70,500 70,500
65 65 65 64 64
162 162 162 164 164
2,423 2,463
56 4,564
80 80 80 80 80
16 16 16 16 16
60 60 60 60 60
Fiscal Year
209
CITY OF AZUSA
Table 26 - Schedule of Credits
Fiscal Year 2016/17
Director of Finance General Overview
Assistant Director of Finance Letter of Transmittal
Management's Discussion and Analysis
Charts
General Fund
Assistant Director of Finance Overall Coordination
Senior Accountant Proprietary Funds
Non-Major Proprietary Funds
Capital Projects
Fixed Assets Accounting
Senior Accountant Non-Major Governmental Funds
Internal Service Funds
Grants Funds (Single Audit)
Successor Agency
Assistant Director of Finance Statistical Section
Budget Analyst
Also, a special thank you to all the Finance Department Staff: Naomi Narvaez, Tony Garcia,
Ruby Toledo, Helen Nsaidzeka, and Charles Alvarez who also played roles in
the collection of data and completion of the Fiscal Year 2016/17 CAFR.
210