HomeMy WebLinkAboutCity of Azusa CAFR 2018_201903071932281950CITY OF AZUSA
CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
CITY OF AZUSA, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2018
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, 2018
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
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:
Grant and Seizure Special Revenue Fund ......................................................................................... 132
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, 2018
Table of Contents, Continued
Page
Supplementary Information (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
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
City of Azusa
Comprehensive Annual Financial Report
For the year ended June 30, 2018
Table of Contents, Continued
Page
STATISTICAL SECTION (Unaudited)
Table 1 - Net Position by Component ............................................................................................................. 168
Table 2 - Changes in Net Position .................................................................................................................... 169
Table 3 - Fund Balances of Governmental Funds ........................................................................................... 171
Table 4 - Changes in Fund Balances of Governmental Funds ...................................................................... 172
Table 5 – Light Department, Electricity Sold by Type of Customer............................................................. 173
Table 6 – Electricity Rates ................................................................................................................................... 174
Table 7 – Largest Electricity Customers ........................................................................................................... 175
Table 8 – Water Sold by Type of Customer ..................................................................................................... 176
Table 9 – Water Rates .......................................................................................................................................... 177
Table 10 – Largest Water Customers ............................................................................................................... 178
Table 11 – Assessed Value and Estimated Actual Value of Taxable Property .......................................... 179
Table 12 – Direct and Overlapping Property Rates ....................................................................................... 180
Table 13 – Principal Property Tax Payers ....................................................................................................... 181
Table 14 – Property Tax Levies and Collections ............................................................................................ 182
Table 15 – Ratios of Outstanding Debt by Type ............................................................................................ 183
Table 16 – Ratio of General Bonded Debt Outstanding ................................................................................ 184
Table 17 – Direct and Overlapping Debt ......................................................................................................... 185
Table 18 – Legal Debt Margin Information ..................................................................................................... 186
Table 19 – Pledged Revenue Coverage ........................................................................................................... 187
Table 20 – Pledged Revenue Coverage, Tax Allocation
Bonds – Redevelopment Agency ............................................................................................................... 189
Table 21 – Demographic and Economic Statistics ......................................................................................... 190
Table 22 – Principal Employers ........................................................................................................................ 191
Table 23 – Full-time and Part-time Employees by Function ........................................................................ 192
Table 24 – Operating Indictors by Function ................................................................................................... 193
Table 25 – Capital Asset Statistics by Function .............................................................................................. 194
Table 29 – Schedule of Credits .......................................................................................................................... 195
Finance Department ō 213 E. Foothill Blvd. ō P.O. Box 1395 ō Azusa, CA 91702-1395
Tel: (626) 812-5203 ō FAX (626) 334-6358
i
February 28, 2019
Honorable Mayor and Council Members
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
Honorable Mayor and Council Members:
I am pleased to present to you the City of Azusa’s Comprehensive Annual Financial Report
(“CAFR”) for the fiscal year ended June 30, 2018 (“FY 2017-18”). The report is intended to update
readers on the status of the City’s financial position and results of operations for the past fiscal
year (July 1, 2017 – June 30, 2018).
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements. This CAFR has been prepared in accordance
with Generally Accepted Accounting Principles (“GAAP”) as promulgated by the Governmental
Accounting Standards Board (“GASB”).
The report contains a citywide view of all governmental and business-type activities, as well as a
focus on the financial position and operating results of the City’s major funds. The financial
statements included in this CAFR represent all City funds.
The City’s financial statements have been audited by Badawi and Associates Certified Public
Accountants (“Badawi”). Badawi is an independent public accounting firm fully licensed and
qualified to perform audits of public agencies within the State of California.
The data presented is believed to be accurate in all material aspects and is intended to set forth
fairly the financial position and the results of the City's operations as measured by the financial
activity of the various funds. All necessary disclosures are included to enable the reader to
understand fully the financial activities and operations of the City.
The goal of the independent audit is to provide reasonable assurance that the financial statements
of the City for the fiscal year ended June 30, 2018, are free of material misstatement. The City
received an unmodified opinion from its independent auditor for the City’s CAFR for the year
ended June 30, 2018, which means Badawi believes the City’s CAFR is presented fairly, in all
material respects. The independent auditor’s report is presented as the first component of the
financial section of the CAFR. The scope of the examination did not include the Statistical Section
of this report.
Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
ii
Management’s Discussion and Analysis (“MD&A”) immediately follows the Independent
Auditors’ Report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD&A complements this letter of transmittal and should be read in
conjunction with it.
PROFILE OF THE GOVERNMENT
The City was incorporated in 1898 as a general law city and operates as a Council/Manager form
of government. The four City Council members are elected at large for four-year terms with
elections staggered at two-year intervals. The Mayor is elected at-large for a two-year term. The
City Council appoints the City Manager to manage the City’s staff and implement the policies
established by the Council. The City is full-service except for its Fire Department which is
contracted with Los Angeles County Fire Department. The City owns and operates an electric
public utility for its citizens providing electric services to customers within the City limits. The
City also owns and operates a water system whose service territory includes the City and
adjoining portions of neighboring cities and unincorporated areas of Los Angeles County.
The City is strategically located off the 210 Freeway within a 30 minute drive to Pasadena,
Orange County, Inland Empire, and the Ontario International Airport. In addition to its
convenient freeway access, Azusa offers several major traffic corridors, including the renowned
U.S. Route 66 (Foothill Boulevard) which runs east to west through the community. The
California State Route 39 runs north to the newly designated San Gabriel Mountains National
Monument and south to the beach.
The City covers approximately 10 square miles and boasts a diverse population of nearly 50,000.
The estimated median household income is over $57,000. Azusa is proud of its mix of small
businesses, support services, manufacturers, and large institutional employers such as Azusa
Pacific University. The City is home to two Metro Gold Line Light Rail Stations as part of the
Foothill Gold Line from Pasadena to Azusa. The stations are located in the heart of downtown,
Azusa Downtown Station, and adjacent to Azusa Pacific University and Citrus College,
APU/Citrus College Station.
HISTORY
The name Azusa can be traced to a native village that existed long before Spanish explorers
arrived in 1769. The City boomed in population after the arrival of the railroad and was known
as the “El Susa Rancho”. The discovery of gold in the San Gabriel Canyon increased the
population base in 1854, and by 1860 over 2,000 inhabitants resided in the area. The U.S.
government bought a portion of the land from founder Henry Dalton for homesteading
purposes. However, it was not until Los Angeles banker, Jonathan D. Slauson acquired the
prized orchard community of Azusa Rancho that the foundation and eventual incorporation on
December 29, 1898 took place.
Orange and lemon groves covered the land and gave way to homes and industry affording new
generations of families and entrepreneurs to pursue the American dream. Today, the City prides
itself on a vibrant industrial base and diverse neighborhoods. Industry within Azusa is
diversified with major employers encompassing the fields of education, aerospace industry, light
manufacturing, and retail services.
Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
iii
LOCAL ECONOMIC CONDITIONS AND OUTLOOK
Azusa is fortunate to have a diverse local economy. The City is less dependent on single source
or cyclical revenues than most of the surrounding cities in the region, and thus, is comparatively
better insulated from major economic downturn. The Azusa Transit Oriented Development
(TOD) Specific Plan has incentivized investment in the revitalization of Downtown Azusa. In the
downtown, the City has entitled a total of 290 residential units and 43,500 square feet of retail
that will break ground in 2019. In addition to these projects, the City has entitled 462,000 square
feet of industrial buildings.
Several housing, retail, and industrial development projects are under construction within the
City. Such projects include: 60 senior housing units, 146,000 square feet of industrial, 100
townhomes and 52,800 square feet of retail. Multiple quick serve chain restaurants such as
Popeye’s Louisiana Kitchen, In-N-Out, and Raising Canes have opened or are scheduled to open
in 2019. While the unemployment rate in Azusa increased slightly by 0.2% to 4.5%, continued
development in Azusa is expected to improve the City’s unemployment rate and is also expected
to continue to generate sales and property tax revenues for the City in coming years.
Assessed valuation (“AV”) of citywide properties for FY 2017-18 increased by 6.7% and is
attributable to new homes sales in various housing developments, such as in Rosedale and other
smaller tracts in the southern areas of the City. An improving housing market is also a factor in
the higher AV. The AV in Azusa has risen for the sixth straight year after three years of decline.
Future AV is expected to continue to rise with the construction and sale of the aforementioned
condominiums and townhomes in several smaller vacant lots in the City.
Anticipated proceeds from one-time property sales of $2.9 million helped the General Fund to
achieve a balanced budget for the 2018-19 Fiscal Year. With removal of the one-time proceeds,
the General Fund’s budget is structurally imbalanced with an operating deficit of $965,341. The
City is tasked in the upcoming years to explore ways to enhance its revenue base in order to keep
up with rising costs while maintaining quality services to the Azusa Community. Mid-year
budget adjustments are usually adopted in February of each year depending on current economic
conditions. It is vital that the City continue to monitor and control all potential expenditure
increases due to the difficulty of revenues to keep pace.
RELEVANT FINANCIAL POLICIES
The City of Azusa has adopted a comprehensive set of financial policies and/or ordinances. The
City requires the adoption of a balanced annual operating budget (i.e., estimated revenues equal
to or in excess of appropriations). In addition, budget amendments of $100,000 or more must be
approved by City Council; this is the legal level of budgetary control. A five-year Capital
Improvement Project Program is adopted each budget year and projects are maintained by
project life. Therefore, the budget appropriation for these projects may need to be re-budgeted in
subsequent accounting periods. Various other policies have been adopted related to debt,
interfund loans, internal controls, and fiscal sustainability to guide the City to continued financial
health.
One of the benchmarks used to assess the General Fund’s progress toward financial sustainability
is the General Fund Reserve Policy. With the adoption of the FY 2018-19 budget, the City
expanded its previous 15% reserve policy, adding three new reserve categories to internally
Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
iv
restrict funds in order to address some of its long-term financial liabilities and potential areas of
financial exposure, such as claims expenses, aged infrastructure, and rising retiree benefits. In
total, restricted reserves amount to $10.3 million for the FY 2018/19 budget year and include the
following four categories: 1) Budget Stabilization and Catastrophic Event ($6.3 million); 2)
Capital and Infrastructure Replacement ($1.5 million); 3) Insurance ($1.0 million); and 4) Retiree
Benefits ($1.5 million). City Council authorization is required for use of these reserves.
As a general law city, Azusa operates its pooled idle cash investments under the Prudent Man
Rule (California Civil Code Section 2261, et. seq.), which in essence states that "in investing
property for the benefit of another, a trustee shall exercise the judgment and care, under
circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the
management of their own affairs...” The City's cash management system is designed to monitor
and forecast expenditures and revenues as accurately as possible and to invest funds to the fullest
extent possible. The City attempts to obtain the highest available investment yields consistent
with the criteria established and outlined in the City's Investment Policy. Some of the
instruments in which the City may invest are: U.S. Government Securities, Certificates of
Deposit, Bankers' Acceptances, the State of California Local Agency Investment Fund (LAIF),
Treasury Bills, Repurchase Agreements, and regular savings and demand deposits.
As previously mentioned above, the City will continue to establish policies that will guide staff
and the departments to ensure continued financial health and stability.
LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES
The laws relating to the dissolution of the former Redevelopment Agency of the City of Azusa
(“RDA”) continue to be reflected on the City’s financial statements. The RDA properties
transferred to the City, to repay several loans, were ordered by the California State Department
of Finance (“DOF”) to be returned to the Successor Agency to the RDA (“SA”). However, the
DOF approved the reinstatement of one of the loans the City holds with SA, and began receiving
annual installments for the repayment of that loan in FY 2016-17. In the future, the City may
request reinstatement of other loans between the City and the SA in order to be repaid.
Rising long-term retirement related liabilities such as pension and other post-employment
benefits (“OPEB”) also continue to be a challenge for the City, while trying to maintain current
service levels. Due to the implementation of GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions (“GASB 75”), the City’s financial
statements reflect a total of a $41.2 million OPEB liability, an increase of $2.2 million from prior
year. Participation in CalPERS health plan programs contractually obligates the City to pay at
least the PEMHCA minimum cost for each retiree. Furthermore, the City continues to offers 50-
100% of paid retiree medical to employees with 10-20 years of service, including spousal
coverage. City-paid medical benefit for employees and their spouses for the rest of the retirees’
lives is extremely generous and financially unsustainable going forward, especially in light of
rapidly increasing health-care costs and longer life spans. To mitigate future costs, the City
established a Health Reimbursement Arrangement (“HRA”) for its Executive Staff and one (1) of
seven (7) of the City’s bargaining groups to replace the lifetime medical benefit. Currently, the
City is in negotiations with the remaining six (6) bargaining groups to negotiate the
implementation of this medical benefit alternative for all new employees.
Pension costs continue to rise due to decisions adopted by the California Public Employees’
Retirement System (“CalPERS”) Board of Administration. Dramatic market losses of the stock
Finance Department ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
v
market turmoil in 2008 and 2009, contributed greatly to the eroded value of the CalPERS pension
fund. Consequently, in April 2013, CalPERS approved an amortization and smoothing policy to
pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate
spread directly over a 5-year period, as opposed to the previous policy which spread investment
returns over a 15-year period with gains and losses paid over a rolling 30-year period.
Following the amortization and smoothing policy changes, in December 2016, CalPERS
announced they will be lowering their discount rate from 7.5% to 7% by FY 2020-21, and most
recently, in February 2018 CalPERS adopted a reduced amortization period for gains and losses
to 20 years beginning with the June 30, 2019 valuation with no amortization for surpluses. All of
these changes combined, will result in significantly higher costs to the City. CalPERS pension
costs are projected to account for approximately 13% of the General Fund’s total operating
expense in FY 2018-19. Through successful labor negotiations with the City’s seven bargaining
units, where employees agreed to contribute 7.0-9.0% of the employers CalPERS share, Council
has already taken steps in the right direction to address rising pension costs.
To further address the increases, the management team of the City will continue proposing
solutions with various employee groups to combat the increasing pension costs.
Despite the dissolution of the Redevelopment Agency and increasing retirement and medical
costs, the City continues to pursue economic development to increase the City’s tax base, revenue
sources, and create and retain jobs to ensure the improvement of its financial health. Pursuing
smart development opportunities as a mechanism to help revitalize the City is crucial to the
City’s long-term economic health. Financial policies will continue to be established and
implemented to ensure that the City maintains financial solvency while tackling tough long-term
challenges. Financial results in recent years have helped the City meet and maintain at minimum
its 15% General Fund Reserve Policy while continuing to maintain service levels.
While the General Fund financial statements reflect an operational loss of $2.6 million, one-time
payouts for an insurance special assessment and retroactive FLSA overtime were the main
drivers for the loss. The City expects a budget surplus in FY 2018/19 due to revenues from one-
time property sales. However, one of the City’s guiding budget philosophies is not to incur long-
term costs using one-time monies. Therefore, continued financial prudence by the Council and a
resolve on the part of staff and management to work together must continue in order to address
longer-term challenges and to ensure the continued vitality of all City services.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Azusa for its
comprehensive annual financial report for the fiscal year ended June 30, 2017 and the award is
valid for a one year period. In order to be awarded, the government unit must publish an easily
readable and efficiently organized comprehensive annual financial report in which the contents
conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. The City believes the current CAFR continues to
meet program requirements and the City will submit to the GFOA to determine its eligibility for
another award.
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 2022
Art Vasquez City Treasurer November 2022
Joseph R. Rocha Mayor November 2020
Edward Alvarez Councilmember November 2022
Angel Carrillo Councilmember November 2020
Robert Gonzales Mayor Pro-Tem November 2022
Uriel Macias Councilmember November 2020
DEPARTMENT HEADS TITLE PHONE NUMBER
Sergio Gonzalez City Manager 626-812-5238
Daniel Bobadilla Director of Public Works and City Engineer 626-812-5248
Matt Marquez 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
Manny Robledo 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
vii
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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, 2018, 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, 2018, 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 supplementary
information, and other post employment benefits information on pages 5-18 and 106-115, 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 120 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 120 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 120 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 February 28,
2019, 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
February 28, 2019
4
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City of Azusa
Management’s Discussion and Analysis
June 30, 2018
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, 2018. 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 2018 by $ 85,038,643 (net position).
Total City assets of $280,155,594 include $149,940,241 or 53.5% of non-current assets
attributed to capital assets, net of depreciation.
Total City liabilities of $216,644,662 include $195,811,350 or 90.4% of long-term liabilities
attributed mainly to tax allocation bonds, certificates of participation, pension, and other
post-employment liabilities.
As of June 30, 2018, the City’s governmental funds reported combined fund balances of
$38,170,519.
At the end of the current fiscal year, the total fund balance for the General Fund was
decreased by $2,641,057 (including prior year restatements) to $22,422,848 .
Total General Fund revenues received for the year were $39,447,907 and total General Fund
expenditures for the year were $38,577,822, an excess of revenues over expenditures
amounting to $870,085. This does not include capital lease financing, 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, 2018
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, 2018
The City of Azusa maintains 26 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. Data from the other
25 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, and 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, 2018
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, 2018, the City’s assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $85,038,643. This represents an increase of $956,207 from the
prior year and is mainly attributed to the increase in current and other assets as well as deferred
pension related items offset by an increase in long-term liabilities.
The largest portion of the net position reflects the City’s $87.6 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, 2018, the restricted assets were $27.9 million of the total net position, of this amount, $10.3
million is for a rate stabilization fund, $6.5 million for debt service related activities, $7.9 million
is restricted for community development projects such as transportation projects and $2.5
million for capital projects such as street repair and maintenance. The remaining amount
relates to Police grants.
At June 30, 2018 the unrestricted net position was a negative $30.6 million. The implementation
of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
2018 2017 2018 2017 2018 2017
Current and other assets 45,004,610$ 45,561,257$ 85,210,743$ 81,401,953$ 130,215,353$ 126,963,210$
Capital assets, net 36,570,569 35,697,998 113,369,672 115,362,325 149,940,241 151,060,323
Total assets 81,575,179 81,259,255 198,580,415 196,764,278 280,155,594 278,023,533
Deferred charge on refunding - - 1,505,928 1,591,905 1,505,928 1,591,905
Deferred pension related items 17,583,267 13,772,555 4,528,301 3,301,796 22,111,568 17,074,351
Total deferred outflows of resources 17,583,267 13,772,555 6,034,229 4,893,701 23,617,496 18,666,256
Current liabilities 5,998,638 8,470,273 14,834,674 13,748,311 20,833,312 22,218,584
Long-term liabilities 116,157,934 106,247,608 79,653,416 80,715,077 195,811,350 186,962,685
Total liabilities 122,156,572 114,717,881 94,488,090 94,463,388 216,644,662 209,181,269
Deferred pension related items 1,696,515 2,518,440 393,270 907,644 2,089,785 3,426,084
Total deferred inflows of resources 1,696,515 2,518,440 393,270 907,644 2,089,785 3,426,084
Net investment in capital assets 35,435,990 33,818,379 52,197,779 50,924,797 87,633,769 84,743,176
Restricted 11,653,156 11,262,725 16,307,140 16,722,108 27,960,296 27,984,833
Unrestricted (71,783,787) (67,285,615) 41,228,365 38,640,042 (30,555,422) (28,645,573)
Total net position (deficits) (24,694,641)$ (22,204,511)$ 109,733,284$ 106,286,947$ 85,038,643$ 84,082,436$
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, 2018
Than Pensions, 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
in fiscal year 2016-17 and $2.2 million in fiscal year 2017-18. 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 8 of the financial statements for further detail.
The following chart shows the comparison of the three components of net position for Fiscal
Years 2017-18 and 2016-17 (in millions):
Governmental activities. The following condensed summary of activities of the City’s
governmental activities for the year ended June 30, 2018 shows total net position is a negative
($22,735,141) a decrease of $530,630 (2.4%) from prior year and primarily attributable to
increases in long-term pension and OPEB liabilities, offset by increased deferred outflows of
resources related to pension.
Business type activities. Business type activities net position totaled $107,773,784, an increase
of $1,486,837 (1.4%) from the prior year and attributed to positive operating results.
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
The City’s total revenues were $116,888,698 and the costs of all programs and services were
$116,533,480. Fiscal year 2017-18 revenues decreased by $899,890 ( 0.77%). Expenses increased
by $2,706,777 (2.3%) from prior year. Key factors include:
The increase of $1.7 million in the governmental activities revenue was mainly due to a
$2.7 million increase in Public Works operating grants and contributions offset by
decreases in miscellaneous revenues due to prior year one time property sale revenues.
Business activity revenues decreased by $2.6 million due to a $3.1 million reduction in
Light charges for services as a result of power cost price adjustments (PCA) to customers
in the prior year of $3.9 million. The decrease was offset by increased charges for
services primarily as a result of higher sales of water due to relaxed water use
restrictions following prior drought conditions as well as increased investment earnings.
2018 2017 2018 2017 2018 2017
Program Revenues:`
Charges for services 10,231,864$ 10,012,151$ 65,513,611$ 68,638,367$ 75,745,475$ 78,650,518$
Operating contributions and grants 6,999,678 4,289,559 704,965 667,619 7,704,643 4,957,178
Capital contributions and grants 1,384,675 935,622 - - 1,384,675 935,622
General Revenues:
Taxes 31,098,760 30,766,788 - - 31,098,760 30,766,788
Investment earnings (202,455) 460,691 1,045,895 512,838 843,440 973,529
Miscellaneous 111,705 1,504,953 - - 111,705 1,504,953
Total Revenues 49,624,227 47,969,764 67,264,471 69,818,824 116,888,698 117,788,588
Expenses:
General Government 12,216,266 11,183,394 - - 12,216,266 11,183,394
Public Safety 28,290,550 24,610,769 - - 28,290,550 24,610,769
Community Development 3,312,408 3,170,213 - - 3,312,408 3,170,213
Parks and Recreation 4,745,891 4,365,600 - - 4,745,891 4,365,600
Public Works 5,522,426 4,404,636 - - 5,522,426 4,404,636
Interest on long-term debt 278,689 361,493 - - 278,689 361,493
Water - - 22,538,051 20,511,527 22,538,051 20,511,527
Light - - 33,269,209 39,464,774 33,269,209 39,464,774
Sewer/Wastewater - - 2,624,377 2,220,602 2,624,377 2,220,602
Refuse Contract - - 3,735,613 3,533,695 3,735,613 3,533,695
Total Expenses 54,366,230 48,096,105 62,167,250 65,730,598 116,533,480 113,826,703
Increase/(decrease) in net position
before transfers (4,742,003) (126,341) 5,097,221 4,088,226 355,218 3,961,885
Extraordinary items - - - - - -
Transfers 2,031,610 1,739,277 (2,031,610) (1,739,277) - -
Change in Net Position (2,710,393) 1,612,936 3,065,611 2,348,949 355,218 3,961,885
Net Position (Deficits) - Beginning (22,204,511) (1,509,979) 106,286,947 105,225,007 84,082,436 103,715,028
Restatement 220,263 (22,307,468) 380,726 (1,287,009) 600,989 (23,594,477)
Net Position (Deficits) - Ending (24,694,641)$ (22,204,511)$ 109,733,284$ 106,286,947$ 85,038,643$ 84,082,436$
Summary of Changes in 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, 2018
In comparison to prior fiscal year, total Governmental revenues increased by $1,654,463. Key
elements of this year’s summary of activities are as follows:
Property tax revenue of $11.1M increased by $403,206 (3.76%) primarily due to increased
assessed value of homes.
Franchise fees of $6.7M decreased by $145,317 (-2.11%) due to decreased reportable
transactions by businesses that have franchise agreements with the City.
Transient Occupancy Taxes (“TOT”) increased by 96.2% or $352,739 primarily due to the
opening of a new hotel in the City.
Contributions and grants of $8.4M increased by $3,159,172 (60.46%) primarily due to a
$2.6M increase in Public Works contributions from Measure R and Proposition C as well
as federal grants.
Sales tax revenue increased by $149,028 (2.7%) due to new business developments
within the City.
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
Total Governmental Activities expenses increased $6.3M (13.04%) over prior year.
General Government expenses increased $1,032,872( 9.24%) compared to prior year. The
increase is mainly due to salaries and benefits related to filling of vacant positions and
draw down of leave balances to lower the City’s exposure to future high leave bank
payouts.
Public Safety expenses increased by $3,679,781 ( 14.95%) primarily due to increased
personnel costs as a result of overtime and compensated absences payouts due to
retirements.
Public Works expenditures increased by $1,117,790 (25.38%) as a result of the
completion of a high volume of transportation related projects and Parks and Recreation
by $380,2915 (8.71%) due to an increase in salaries and benefits related to filling of
vacant positions and capital outlay purchases.
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
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 $38,170,519, a decrease of ($755,296) in comparison with the prior year’s
revised fund balance. The decrease is attributed prior year one-time intergovernmental and
miscellaneous revenues as well as increased Public Safety and Capital Outlay expenditures
which resulted in negative operating results (expenditures exceeding revenues).
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2017-18,
its ending fund balance of $22,422,853 decreased by ($2,641,052) from prior year, primarily as a
result of increased Public Safety personnel costs as a result of filling vacant positions as well as
a decrease in miscellaneous revenue due to prior year property sales.
Non-Major Governmental Funds consist of 24 special revenue, capital project, and debt service
funds. In total, these funds reported a combined ending 2017-18 fund balance of $15,747,671, an
increase of $1,885,761 from prior year. Activities by fund can be found starting on page 118 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
$45,085,524. Total unrestricted net position increased by $2,784,759 (6.6%) and total net position
increased by $3,395,467 (3.1%) from the previous fiscal year as restated.
Unrestricted net position of the City’s Water Utility at the end of the year amounted to
$26,799,839, a decrease of $943,921 (3.4%). Total net position decreased by ($236,673) (-0.45%)
from the prior year. Water revenues were up by $1,242,975 and expenses increased by
$1,998,191. The increase in revenues is a reflection of $1.1 million in increase water sales
resulting from lifted water restrictions and approved water rate increases. 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.
Unrestricted net position of the City’s Light Utility at the end of the year amounted to
$14,881,322. Total unrestricted net position increased by $3,288,139 (28.4%) and total net
position also increased by $3,299,498 (7.4%) from the previous fiscal year. Light revenues and
expenses were down by $4,784,407 (11.6%) and $5,874,343 (16.4%), respectively, from prior year.
The decrease in revenues primarily reflects recognition of approximately $3.9 million in
revenues for power cost adjustments in the prior year.
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
The following chart highlights total revenue and total expenses for each of the business type
activities for fiscal year end June 30, 2018:
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
The difference between the original expenditure budget and the final amended expenditure
budget was an increase of $2,546,060 with highlights as follows:
Increased personnel costs as a result of overtime and compensated absences payouts
due to retirements, mainly in Police.
Park Maintenance costs increased as a result of landscaping and tree trimming services
contract changes.
Increased Code Enforcement costs for legal fees related to the challenging cases and
increased activities in the division.
Increased Facilities Maintenance costs related to City HVAC systems repairs and
maintenance.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 31,498,416$ 31,748,681$ 32,657,297$ 908,616$
Charges for services 1,631,250 1,786,200 1,875,700 89,500
Assessments 1,924,810 1,995,680 2,232,012 236,332
Other revenue 5,626,850 4,127,850 3,879,825 (248,025)
Total revenue 40,681,326 39,658,411 40,644,834 986,423
Expenditures:
Operations 33,073,083 34,663,488 36,336,279 1,672,791
Capital Outlay 189,608 522,598 882,429 359,831
Debt Service 1,254,035 1,876,700 1,359,110 (517,590)
Total expenditures 34,516,726 37,062,786 38,577,818 1,515,032
Excess/(Deficiency) of revenues
over expenditures 6,164,600 2,595,625 2,067,016 (528,609)
Other Financing Sources/(Uses):
Transfers in 1,563,990 1,563,990 1,563,996 6
Transfers out 6,627,282 6,272,067 6,272,064 3
Total other financing sources (uses) (5,063,292) (4,708,077) (4,708,068) 9
Net change in fund balance 1,101,308 (2,112,452) (2,641,052) (528,600)
Fund balance beginning of year 25,063,905 25,063,905 25,063,905 -
Fund balance end of year $26,165,213 $22,951,453 $22,422,853 ($528,600)
General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2018
Budgeted Amounts
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
Increased Capital Outlay costs to due police vehicle purchases and equipment for the IT
Microfiche Conversion project.
Water Fund Loan repayment increased principal retirement costs.
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, 2018 amounted to $149,940,241 (net of accumulated depreciation). This
investment includes land, construction in progress, land improvements, buildings and
structures, machinery and equipment, automotive equipment and infrastructure.
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 $124,958,486. Of this amount, $58,859,804 is a liability of the Governmental
Activities and $66,098,682 is a liability of the Business Type Activities.
2018 2017 2018 2017 2018 2017
Land 3,562,016$ 3,562,016$ 2,988,973$ 2,988,973$ 6,550,989$ 6,550,989$
Construction in Progress 627,034 119,587 2,466,199 277,884 3,093,233 397,471
Land Improvements 965,197 1,086,616 305,191 343,618 1,270,388 1,430,234
Buildings and Structures 6,180,707 6,372,390 11,420,830 11,915,633 17,601,537 18,288,023
Machinery and Equipmen 935,297 1,099,140 2,239,122 2,628,995 3,174,419 3,728,135
Automotive Equipment 561,921 525,691 314,907 299,896 876,828 825,587
Infrastructure 23,738,397 22,932,558 93,635,260 96,907,326 117,373,657 119,839,884
Total 36,570,569$ 35,697,998$ 113,370,482$ 115,362,325$ 149,941,051$ 151,060,323$
Capital Assets for the year ended June 30
(Net of Accumulated Depreciation)
Governmental Business Type
Activities Activities Total
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
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 2018-19, the City adopted a balanced budget with a projected surplus of $2.1 million,
including one-time revenues of $2.9 million, offset by one-time expenditures of $37,100.
Excluding one-time transactions, 2018-19 adopted budget, had a projected deficit of $0.8 million
with no proposed reduction in services, and is able to be absorbed due to sufficient cash reserve
balances.
Revenue projections for the 2018-19 General Fund adopted budget reflected a growth of 8.0%
over the prior year’s final budget. Property taxes are expected to continue to grow modestly
due higher home values and property sales as a result of housing developments. Money and
property use revenues are projected to increase for the leasing of the City’s water rights which
have increased in value. However, the projected growth in revenues is mainly attributable to
one-time revenues related to various commercial property sales.
General Fund expenditures, including transfers out, debt service, and capital outlay, for the
2018-19 adopted budget were lower than the 2017-18 final budget by (4.4%). The decrease
reflects the removal of one-time expenses in the prior year for a special assessment from the
City’s former insurance provider and retroactive overtime payments made as legally required.
The FY 2018-19 budget anticipates a reduction in vacation and sick leave cash outs.
Rising retirement costs, such as pension and retiree health care, are ongoing concerns for the
City. The projected expenditures decrease is offset by increased CalPERS costs and anticipated
increases for retiree medical payments. Six of the City’s seven labor contracts expire from June
30, 2018 – December 31, 2018 and are currently under negotiation. Proposed expenditures do
not include the impact of the pending contract changes. Additionally, the City is examining
ways to expand its revenue base in order to fund the anticipated increased costs in the future.
2018 2017 2018 2017 2018 2017
Employee Leave Benefits 3,622,881$ 3,904,534$ 1,362,107$ 1,295,853$ 4,984,988$ 5,200,387$
Net OPEB Liability 39,116,331 37,053,449 2,058,754 1,950,181 41,175,085 39,003,630
Advance from the Successor Agency 8,208,833 8,208,833 - - 8,208,833 8,208,833
2003 COPS 1,460,000 1,745,000 - 130,000 1,460,000 1,875,000
2008 Taxable Pension Funding Bond - 1,175,000 - - - 1,175,000
2011 Sewer Installment Loan - - 3,605,000 3,990,000 3,605,000 3,990,000
2012 Electric Refunding Bond - - 5,170,000 5,820,000 5,170,000 5,820,000
2012 Water Refunding Bonds - - 5,155,000 5,910,000 5,155,000 5,910,000
2015 Water Refunding Bonds - - 45,405,000 46,590,000 45,405,000 46,590,000
2016 T.R.I.P Installment Sale 3,385,000 3,490,000 - - 3,385,000 3,490,000
Claims and Judments Payable 2,787,382 3,232,622 (1)- - 2,787,382 3,232,622
Capital Lease 122,889 - - - 122,889 -
Unamortized Premium/(Discount) 156,488 158,030 3,342,821 3,589,433 3,499,309 3,747,463
Total 58,859,804$ 58,967,468$ 66,098,682$ 69,275,467$ 124,958,486$ 128,242,935$
(1) Restated
Outstanding Debt for the year ended June 30
Governmental Business Type
Activities Activates Total
City of Azusa
Management’s Discussion and Analysis
June 30, 2018
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, 2018
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 25,839,210$ 50,511,523$ 76,350,733$
Restricted assets:
Cash with fiscal agent 3,989,798 6,033,600 10,023,398
Cash held for rate stabilization - 10,273,540 10,273,540
Receivables:
Accounts, net 2,776,241 9,226,670 12,002,911
Taxes 2,176,510 - 2,176,510
Notes and loans 60,655 44,995 105,650
Accrued interest 75,383 112,411 187,794
Prepaid costs 309,805 78,499 388,304
Inventories 150,316 1,926,718 2,077,034
Total current assets 35,377,918 78,207,956 113,585,874
Noncurrent assets:
Internal balances (4,386,775) 4,386,775 -
Due from Successor Agency 8,786,732 2,616,012 11,402,744
Land held for resale 5,226,735 - 5,226,735
Capital assets:
Non-depreciable 4,189,050 5,455,172 9,644,222
Depreciable, net 32,381,519 107,914,500 140,296,019
Total capital assets 36,570,569 113,369,672 149,940,241
Total noncurrent assets 46,197,261 120,372,459 166,569,720
TOTAL ASSETS 81,575,179 198,580,415 280,155,594
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt - 1,505,928 1,505,928
Deferred outflows related to pension 17,583,267 4,528,301 22,111,568
TOTAL DEFERRED OUTFLOWS OF RESOURCES 17,583,267 6,034,229 23,617,496
LIABILITIES
Current liabilities:
Accounts payable 1,523,714 5,593,744 7,117,458
Accrued liabilities 1,681,203 421,858 2,103,061
Accrued interest 36,030 1,186,388 1,222,418
Unearned revenue 1,191,734 - 1,191,734
Deposits payable 12,370 3,355,154 3,367,524
Due to other governments 3,852 23,079 26,931
Compensated absences - due within one year 105,342 1,034,451 1,139,793
Claims and judgements - due within one year 1,000,000 - 1,000,000
Bonds and notes payable - due within one year 444,393 3,220,000 3,664,393
Total current liabilities 5,998,638 14,834,674 20,833,312
Noncurrent liabilities:
Due to Successor Agency 8,208,833 - 8,208,833
Total OPEB liability 39,116,331 2,058,754 41,175,085
Net pension liabilities 58,847,865 17,809,185 76,657,050
Compensated absences - due in more than one year 3,517,539 327,656 3,845,195
Claims and judgements - due in more than one year 1,787,382 - 1,787,382
Bonds and note payable - due in more than one year 4,679,984 59,457,821 64,137,805
Total noncurrent liabilities 116,157,934 79,653,416 195,811,350
TOTAL LIABILITIES 122,156,572 94,488,090 216,644,662
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 1,696,515 393,270 2,089,785
NET POSITION
Net investment in capital assets 35,435,990 52,197,779 87,633,769
Restricted for:
Community development projects 7,935,163 - 7,935,163
Public safety 764,434 - 764,434
Capital projects 2,461,211 - 2,461,211
Debt service 492,348 6,033,600 6,525,948
Rate stabilization - 10,273,540 10,273,540
Total restricted 11,653,156 16,307,140 27,960,296
Unrestricted (71,783,787) 41,228,365 (30,555,422)
TOTAL NET POSITION (24,694,641)$ 109,733,284$ 85,038,643$
Primary Government
City of Azusa
See accompanying Notes to Basic Financial Statements.23
City of Azusa
Statement of Activities
For the year ended June 30, 2018
Operating Capital
Charges for Grants and Grants and
Functions / Programs Expenses Services Contributions Contributions Total
Primary Government:
Governmental activities:
General government 12,216,266$ 5,065,921$ 342,152$ -$ 5,408,073$
Public safety 28,290,550 649,929 752,778 - 1,402,707
Community development 3,312,408 3,162,591 676,372 - 3,838,963
Parks and recreation 4,745,891 478,140 221,236 - 699,376
Public works 5,522,426 875,283 5,007,140 1,384,675 7,267,098
Interest on long-term debt (unallocated)278,689 - - - -
Total governmental activities 54,366,230 10,231,864 6,999,678 1,384,675 18,616,217
Business-type activities:
Water 22,538,051 22,028,440 - - 22,028,440
Light 33,269,209 36,620,020 - - 36,620,020
Sewer/Wastewater 2,624,377 2,979,516 - - 2,979,516
Refuse Contract 3,735,613 3,885,635 704,965 - 4,590,600
Total business-type activities 62,167,250 65,513,611 704,965 - 66,218,576
Total primary government 116,533,480$ 75,745,475$ 7,704,643$ 1,384,675$ 84,834,793$
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
Program Revenues
See accompanying Notes to Basic Financial Statements.24
Governmental Business-Type
Activities Activities Total
(6,808,193)$ -$ (6,808,193)$
(26,887,843) - (26,887,843)
526,555 - 526,555
(4,046,515) - (4,046,515)
1,744,672 - 1,744,672
(278,689) - (278,689)
(35,750,013) - (35,750,013)
- (509,611) (509,611)
- 3,350,811 3,350,811
- 355,139 355,139
- 854,987 854,987
- 4,051,326 4,051,326
(35,750,013) 4,051,326 (31,698,687)
11,122,669 - 11,122,669
719,318 - 719,318
5,665,876 - 5,665,876
6,747,947 - 6,747,947
2,208,309 - 2,208,309
3,032,095 - 3,032,095
1,602,546 - 1,602,546
31,098,760 - 31,098,760
(202,455) 1,045,895 843,440
111,705 - 111,705
2,031,610 (2,031,610) -
33,039,620 (985,715) 32,053,905
(2,710,393) 3,065,611 355,218
(21,984,248) 106,667,673 84,683,425
(24,694,641)$ 109,733,284$ 85,038,643$
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.
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, 2018
Non-Major Total
General Governmental Governmental
Fund Funds Funds
ASSETS
Pooled cash and investments 9,843,848$ 14,864,847$ 24,708,695$
Receivables:
Accounts 847,261 1,928,019 2,775,280
Taxes 2,170,357 6,153 2,176,510
Notes and loans 3,267 57,388 60,655
Accrued interest 55,968 16,987 72,955
Prepaid costs 80,741 4,204 84,945
Due from other funds 794,983 - 794,983
Inventories 150,316 - 150,316
Land held for resale 5,226,735 - 5,226,735
Restricted assets:
Cash and investments with fiscal agents - 3,989,798 3,989,798
Advances to Successor Agency 8,786,732 - 8,786,732
Total assets 27,960,208$ 20,867,396$ 48,827,604$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 456,899$ 713,156$ 1,170,055$
Accrued liabilities 1,431,847 198,300 1,630,147
Unearned revenues 7,987 1,183,747 1,191,734
Deposits payable - 12,370 12,370
Due to other governments 3,852 - 3,852
Due to other funds - 794,983 794,983
Advances from other funds 3,636,775 750,000 4,386,775
Total liabilities 5,537,360 3,652,556 9,189,916
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - 1,467,169 1,467,169
Total deferred inflow of resources - 1,467,169 1,467,169
FUND BALANCES
Nonspendable:
Inventories 150,316 - 150,316
Prepaid costs 80,741 4,204 84,945
Land held for resale 5,226,735 - 5,226,735
Notes and loans 3,267 - 3,267
Advances to Successor Agency 8,786,732 - 8,786,732
Restricted for:
Community development projects - 7,935,163 7,935,163
Public safety - 764,434 764,434
Capital projects - 6,411,898 6,411,898
Debt service - 492,348 492,348
Committed for:
Employee benefits - 498,066 498,066
Unassigned 8,175,057 (358,442) 7,816,615
Total fund balances 22,422,848 15,747,671 38,170,519
Total liabilities, deferred inflows
of resources, and fund balances 27,960,208$ 20,867,396$ 48,827,604$
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 38,170,519$
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 4,189,050$ -$ 4,189,050
- Depreciable, net 32,381,519 231,609 32,149,910
Total capital assets 36,570,569$ 231,609$ 36,338,960
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 17,583,267$ (730,650)$
Deferred inflow of resources - pension (1,696,515) 57,865 15,213,967
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.(36,030)
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.1,467,169
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. (3,930,137)
Long-term liabilities were not due and payable in the current period.
Therefore, they were not reported in the Governmental Funds Balance
Sheet.
Wide
Statement of
Net Position
Internal
Service Funds
- Compensated absences - due within one year (105,342)$ 105,342$ -
- Claims and judgements - due within one year (1,000,000) 1,000,000 -
- Bonds and notes payable - due within one year (444,393) - (444,393)
- Due to Successor Agency (8,208,833)- (8,208,833)
- Total OPEB liability (39,116,331)- (39,116,331)
- Net pension liabilities (58,847,865)2,804,395 (56,043,470)
- Compensated absences - due in more than one year (3,517,539)91,461 (3,426,078)
- Claims and judgements - due in more than one year (1,787,382)1,787,382 -
- Bonds and notes payable - due in more than one year (4,679,984)- (4,679,984)
Total long-term liabilities (117,707,669)$ 5,788,580$ (111,919,089)
Net Position of Governmental Activities (24,694,641)$
June 30, 2018
Amounts reported for governmental activities in the Statement of Net
Position were different because:
City of Azusa
See accompanying Notes to Basic Financial Statements.31
City of Azusa
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2018
Non-Major Total
General Governmental Governmental
Fund Funds Funds
REVENUES:
Taxes 32,657,297$ 2,880,195$ 35,537,492$
Assessments 2,232,012 - 2,232,012
Licenses and permits 1,112,986 51,750 1,164,736
Intergovernmental 400,965 3,733,974 4,134,939
Charges for services 1,875,700 1,765,942 3,641,642
Use of money and property (74,878) 383,366 308,488
Fines and forfeitures 1,124,080 - 1,124,080
Contributions 8,721 94,781 103,502
Miscellaneous 111,024 51,763 162,787
Total revenues 39,447,907 8,961,771 48,409,678
EXPENDITURES:
Current:
General government 9,311,096 535,264 9,846,360
Public safety 20,557,725 5,169,614 25,727,339
Community development 1,974,955 1,042,850 3,017,805
Parks and recreation 3,713,960 447,715 4,161,675
Public works 778,547 3,426,839 4,205,386
Capital outlay 882,429 2,604,203 3,486,632
Debt service:
Principal retirement 1,214,111 390,000 1,604,111
Interest and fiscal charges 144,999 199,204 344,203
Total expenditures 38,577,822 13,815,689 52,393,511
REVENUES OVER (UNDER) EXPENDITURES 870,085 (4,853,918) (3,983,833)
OTHER FINANCING SOURCES (USES):
Capital lease financing 162,000 - 162,000
Transfers in 1,563,996 7,072,283 8,636,279
Transfers out (6,272,065) (332,604) (6,604,669)
Proceeds from sale of capital assets 1,034,927 - 1,034,927
Total other financing sources (uses)(3,511,142) 6,739,679 3,228,537
Net change in fund balances (2,641,057) 1,885,761 (755,296)
FUND BALANCES:
Beginning of year 25,063,905 13,861,910 38,925,815
End of year 22,422,848$ 15,747,671$ 38,170,519$
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, 2018
Net Change in Fund Balances - Total Governmental Funds (755,296)$
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.2,697,993
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.(1,751,363)
Pension expense does not require the use of current financial resources, and therefore is not
reported as expenditures in goverrnmental funds.(8,371,180)
Employer contributions for pension were recorded as expenditures in the governmental funds.
However in the Government-Wide Financial Statements, these contributions are deferred 4,941,941
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.1,214,550
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 1,542
OPEB expense does not require the use of current financial resources, and therefore is not reported
as expenditures in governmental funds.(2,062,882)
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.296,328
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. 1,604,111
Capital lease financing provided current financial resources to governmental funds, but issuing
debt increased long-term liabilities in the Government-Wide Statement of Net Position.(162,000)
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.63,970
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.(428,107)
Change in Net Position of Governmental Activities (2,710,393)$
Amounts reported for governmental activities in the Statement of Activities were different because:
City of Azusa
See accompanying Notes to Basic Financial Statements.33
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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.
35
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36
City of Azusa
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2018
Governmental
Non-Major Total Activities -
Water Light Enterprise Enterprise Internal Service
Fund Fund Funds Funds Funds
ASSETS
Current:
Cash and investments 28,166,701$ 16,418,214$ 4,600,876$ 49,185,791$ 2,456,247$
Receivables:
Accounts 4,156,003 3,923,748 885,752 8,965,503 262,128
Notes and loans 3,202 40,000 - 43,202 1,793
Accrued interest - - 9,465 9,465 105,374
Prepaid costs 8,421 67,259 362 76,042 227,317
Inventories - 1,926,718 - 1,926,718 -
Restricted cash with fiscal agent 3,080,969 1,476,382 1,476,249 6,033,600 -
Restricted cash held for rate stabilization - 10,273,540 - 10,273,540 -
Total current assets 35,415,296 34,125,861 6,972,704 76,513,861 3,052,859
Noncurrent:
Advances to Successor Agency 2,616,012 - - 2,616,012 -
Advances to other funds 3,530,775 856,000 - 4,386,775 -
Capital assets - net of accumulated depreciation 75,559,192 27,949,771 9,436,931 112,945,894 655,387
Total noncurrent assets 81,705,979 28,805,771 9,436,931 119,948,681 655,387
Total assets 117,121,275 62,931,632 16,409,635 196,462,542 3,708,246
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,208,918 297,010 - 1,505,928 -
Deferred pension related items 1,500,235 1,215,879 442,723 3,158,837 2,100,114
Total deferred outflows of resources 2,709,153 1,512,889 442,723 4,664,765 2,100,114
LIABILITIES
Current:
Accounts payable 3,725,559 1,033,627 689,501 5,448,687 498,716
Accrued liabilities 132,474 143,302 32,678 308,454 164,460
Accrued interest 1,050,134 84,435 51,819 1,186,388 -
Deposits payable 1,039,704 2,315,450 - 3,355,154 -
Due to other governments 11,115 11,964 - 23,079 -
Compensated absences - due within one year 340,334 332,578 66,229 739,141 400,652
Claims and judgements - due within one year - - - - 1,000,000
Bonds and notes payable - due within one year 2,025,000 795,000 400,000 3,220,000 -
Total current liabilities 8,324,320 4,716,356 1,240,227 14,280,903 2,063,828
Noncurrent:
Compensated absences - due in more than one year 95,909 231,747 - 327,656 91,461
Bonds and notes payable - due in more than one year 51,811,326 4,441,495 3,205,000 59,457,821 -
Claims and judgements - due in more than one year - - - - 1,787,382
Total OPEB liability 823,501 411,752 - 1,235,253 823,501
Net pension liability 5,837,555 4,887,507 1,662,498 12,387,560 8,226,020
Total noncurent liabilities 58,568,291 9,972,501 4,867,498 73,408,290 10,928,364
Total liabilities 66,892,611 14,688,857 6,107,725 87,689,193 12,992,192
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 125,225 114,134 32,090 271,449 179,686
Total deferred inflows of resources 125,225 114,134 32,090 271,449 179,686
NET POSITION
Net investment in capital assets 22,931,784 23,010,286 5,831,931 51,774,001 655,387
Restricted for debt service 3,080,969 1,476,382 1,476,249 6,033,600 -
Restricted for rate stabilization - 10,273,540 - 10,273,540 -
Unrestricted 26,799,839 14,881,322 3,404,363 45,085,524 (8,018,905)
Total net position 52,812,592$ 49,641,530$ 10,712,543$ 113,166,665 (7,363,518)$
Reconciliation of net position to the Business-Type Activities Statement of Net Position
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds' activities related to the enterprise funds (3,103,525)
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (329,856)
Net position per Business-Type Activities Statement of Net Position 109,733,284$
Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.37
City of Azusa
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the year ended June 30, 2018
Non-Major Total Internal
Water Light Enterprise Enterprise Service
Fund Fund Funds Funds Funds
OPERATING REVENUES:
Sales and service charges 21,484,468$ 34,462,644$ 6,864,627$ 62,811,739$ 12,632,499$
Interdepartmental charges 517,831 363,697 - 881,528 -
Miscellaneous 14,141 (165,821) 524 (151,156) 86,605
Other restricted revenues - 1,959,500 - 1,959,500 -
Lease revenue 12,000 - - 12,000 -
Total operating revenues 22,028,440 36,620,020 6,865,151 65,513,611 12,719,104
OPERATING EXPENSES:
Administration and general 7,713,269 7,744,643 1,269,564 16,727,476 10,761,715
Source of supply 1,346,062 17,041,378 - 18,387,440 28,815
Pumping 67,747 - - 67,747 -
Transmission/collection 1,792,413 3,703,591 - 5,496,004 -
Treatment 393,605 - 677,186 1,070,791 -
Refuse collection - - 3,741,695 3,741,695 -
Cost of sales and services 5,153,858 64,271 - 5,218,129 -
Claims expense - - - - 2,196,011
Depreciation expense 3,736,715 1,353,323 496,328 5,586,366 96,181
Total operating expenses 20,203,669 29,907,206 6,184,773 56,295,648 13,082,722
OPERATING INCOME (LOSS)1,824,771 6,712,814 680,378 9,217,963 (363,618)
NONOPERATING REVENUES (EXPENSES):
Taxes - - 704,965 704,965 -
Interest revenue 535,060 433,639 77,196 1,045,895 5,254
Interest expense (1,946,230) (171,491) (127,012) (2,244,733) -
Special franchise fees (403,744) (3,239,523) (60,369) (3,703,636) -
Loss on disposal of capital assets - - - - (8,927)
Gain on disposal of capital assets 3,430 12,521 - 15,951 -
Total nonoperating revenues (expenses)(1,811,484) (2,964,854) 594,780 (4,181,558) (3,673)
INCOME (LOSS) BEFORE TRANSFERS 13,287 3,747,960 1,275,158 5,036,405 (367,291)
Transfer in - - - - 132,504
Transfer out (249,960) (448,462) (942,516) (1,640,938) (523,176)
Change in net position (236,673) 3,299,498 332,642 3,395,467 (757,963)
Net position:
Beginning of year, as restated 53,049,265 46,342,032 10,379,901 109,771,198 (6,605,555)
End of year 52,812,592$ 49,641,530$ 10,712,543$ 113,166,665$ (7,363,518)$
Reconciliation of change in net position to the Business-Type Activities Statement of Activities
Change in net position per Statement of Net Position - Proprietary Funds 3,395,467$
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (329,856)
Change in net position per Business-Type Activities Statement of Net Pos 3,065,611$
Business-Type Activities - Enterprise Funds
38
City of Azusa
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2018
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 21,612,275$ 35,016,361$ 6,829,941$ 63,458,577$ 12,828,924$
Cash received from/(paid to) interfund service provided 517,831 363,697 - 881,528 -
Cash paid to suppliers for goods and services (12,409,086) (25,567,848) (4,802,301) (42,779,235) (9,364,937)
Cash paid to employees for services (2,534,208) (3,063,916) (750,596) (6,348,720) (3,769,261)
Net cash provided by (used in) operating activities 7,186,812 6,748,294 1,277,044 15,212,150 (305,274)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers out (249,960) (448,462) (942,516) (1,640,938) (523,176)
Cash transfers in - - - - 132,504
Net cash provided by noncapital financing activities (249,960) (448,462) (942,516) (1,640,938) (390,672)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (2,394,206) (1,211,844) 3,999 (3,602,051) (26,119)
Principal paid on capital debt (1,940,000) (780,000) (385,000) (3,105,000) -
Interest paid on capital debt (2,143,553) (172,690) (132,213) (2,448,456) -
Special franchise fees paid (403,744) (3,239,523) (60,369) (3,703,636) -
Repayment made for advances 523,379 25,000 - 548,379 -
Taxes - - 704,965 704,965 -
Proceeds from sale of capital assets 3,430 12,521 - 15,951 -
Net cash provided by (used in) capital and related financing activities (6,354,694) (5,366,536) 131,382 (11,589,848) (26,119)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 535,060 433,639 77,871 1,046,570 9,196
Net cash provided by (used in) investing activities 535,060 433,639 77,871 1,046,570 9,196
Net increase (decrease) in cash and cash equivalents 1,117,218 1,366,935 543,781 3,027,934 (712,869)
CASH AND CASH EQUIVALENTS:
Beginning of year 30,130,452 24,841,701 5,533,344 60,505,497 3,169,116
End of year 31,247,670$ 26,208,636$ 6,077,125$ 63,533,431$ 2,456,247$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 28,166,701$ 16,418,214$ 4,600,876$ 49,185,791 2,456,247$
Cash with fiscal agent 3,080,969 1,476,382 1,476,249 6,033,600 -
Cash held for rate stabilization - 10,273,540 - 10,273,540 -
Total 31,247,670$ 28,168,136$ 6,077,125$ 65,492,931$ 2,456,247$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)1,824,771$ 6,712,814$ 680,378$ 9,217,963$ (363,618)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 3,736,715 1,353,323 496,328 5,586,366 96,181
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable (31,193) 909,508 (35,210) 843,105 109,820
(Increase) decrease in inventories - (186,760) - (186,760) -
(Increase) decrease in prepaid expense (3,196) (15,655) (184) (19,035) (79,226)
(Increase) decrease in deferred pension related outflows (391,794) (353,847) (101,649) (847,290) (561,058)
Increase (decrease) in accounts payable 989,004 (271,115) 2,089 719,978 (318,271)
Increase (decrease) in accrued liabilities 131,625 134,297 29,083 295,005 162,666
Increase (decrease) in deposits payable 132,859 (189,970) - (57,111) -
Increase (decrease) in due to other governments (558) 351 - (207) -
Increase (decrease) in claims and judgements - - - - (445,240)
Increase (decrease) in compensated absences 43,464 (8,765) 5,847 40,546 40,383
Increase (decrease) in total OPEB liability 43,429 21,715 - 65,144 43,429
Increase (decrease) in net pension liability 885,924 733,564 255,453 1,874,941 1,245,567
Increase (decrease) in deferred pension related inflows (174,238) (131,666) (55,091) (360,995) (235,907)
Total adjustments 5,362,041 1,994,980 596,666 7,953,687 58,344
Net cash provided by (used in) by operating activities 7,186,812$ 8,707,794$ 1,277,044$ 17,171,650$ (305,274)$
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 -
Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.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, 2018
Private Purpose
Trust Fund
RDA
Agency Successor
Fund Agency Fund
ASSETS
Pooled cash and investments 10,991,686$ 3,688,568$
Receivables:
Accounts 52,504 -
Taxes 64,498 -
Notes and loans - 1,129,169
Accrued interest - 115
Advances to City - 8,208,832
Land held for resale - 18,532,818
Restricted:
Cash and investments with fiscal agents 4,072,586 47,942
Capital assets:
Capital assets, not being depreciated - 410,420
Capital assets, net of accumulated depreciation - 1,101,619
Total assets 15,181,274$ 33,119,483
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 2,961,101
Total deferred outflows of resources 2,961,101
LIABILITIES
Accounts payable 481,252$ 372,011
Accrued liabilities 3,897 -
Accrued interest - 610,869
Deposits payable 14,694,475 -
Due to other governments 1,650 2,500
Long-term liabilities:
Due in one year - 1,980,000
Due in more than one year - 43,410,487
Due to City of Azusa - 11,402,744
Total liabilities 15,181,274$ 57,778,611
NET POSITION
Held in trust for other purposes (21,698,027)
Total net position (21,698,027)$
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, 2018
Private-Purpose
Trust Fund
RDA Successor
Agency Fund
ADDITIONS:
Taxes 4,895,310$
Interest and change in fair value of investments 6,784
Miscellaneous 198
Total additions 4,902,292
DEDUCTIONS:
Administration expenses 128,646
Contractual services 48,341
Interest expense 2,019,897
Depreciation expense 129,152
Loss on sale of assets 1,450,000
Contributions to other governments 1,137,945
Total deductions 4,913,981
Change in net position (11,689)
Net position:
Beginning of year (21,686,338)
End of year (21,698,027)$
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, 2018
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, 2018
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, 2018
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.
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, 2018
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, 2018
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, 2018
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, 2018
50
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
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, 2018
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, 2018
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, 2018
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, 2018
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, 2018
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 2018, the City adopted new accounting standards in order to conform to the following Governmental
Accounting Standards Board Statements:
GASB Statement No. 81, Irrevocable Split-Interest Agreements – The objective of this statement
is to improve accounting and financial reporting for irrevocable split-interest agreements by
providing recognition and measurement guidance for situations in which a government is a
beneficiary of the agreement. The requirements of this statement did not apply to the City for
the current fiscal year.
GASB Statement No. 85, Omnibus 2017 – The objective of this statement is to address practice
issues that have been identified during implementation and application of certain GASB
Statements. This Statement addresses a variety of topics including issues related to blending
component units, goodwill, fair value measurement and application, and other
postemployment benefits (OPEB). There was no effect on net position as a result of
implementation of this statement. Statement also improves accounting and financial
reporting for prepaid insurance on debt that is extinguished and notes to financial statements
for debt that is defeased in substance. The requirements of this statement did not apply to
the City for the current fiscal year.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
56
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
U. New Pronouncements, Continued
GASB Statement No. 86, Certain Debt Extinguishment Issues – The objective of this statement is
to improve consistency in accounting and financial reporting for in-substance defeasance of
debt by providing guidance for transactions in which cash and other monetary assets
acquired with only existing resources—resources other than the proceeds of refunding debt—
are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement
also improves accounting and financial reporting for prepaid insurance on debt that is
extinguished and notes to financial statements for debt that is defeased in substance. The
requirements of this statement did not apply to the City for the current fiscal year.
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, 2018
Governmental Business-Type Fiduciar y
Activities Activities Funds Total
Cash and investments 25,839,210$ 50,511,523$ 14,680,254$ 91,030,987$
Cash with fiscal agent:
Cash with fiscal agent for debt service 3,989,798 6,033,600 4,120,528 14,143,926
Cash held for rate stabilization - 10,273,540 - 10,273,540
Total cash with fiscal agent 3,989,798 16,307,140 4,120,528 24,417,466
Total cash and investments 29,829,008$ 66,818,663$ 18,800,782$ 115,448,453$
Government-Wide Statement of
Net Position
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
57
2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments, Continued
Cash and investments as of June 30, 2018 consist of the following:
Cash on hand 6,935$
Deposits with financial institution 8,916,246
Total cash on hand and deposits 8,923,181
Local Agency Investment Funds 37,980,912
Government Obligations:
Federal Farm Credit Bank 13,840,979
Federal Home Loan Bank 4,889,092
Federal Home Loan Mortgage Corp.13,141,674
Federal National Mortgage Association 3,925,807
Certificates of Deposit 6,745,273
Corporate Bonds 238,171
Money market mutual funds 1,345,898
Total investments 82,107,806
Total City Treasury 91,030,987
Cash with fiscal agent 14,143,926
Cash held for rate stabilization 10,273,540
Total cash and investments 115,448,453$
B. Deposits
The carrying amount of the City’s cash deposit was $8,916,246 at June 30, 2018. Bank balances before
reconciling items were a positive amount of $9,261,325 at June 30, 2018. 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, 2018
58
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, 2018, 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, 2018, the City had $37,980,912 invested in LAIF, which had invested 2.67% of the pool
investment funds in Structured Notes and Asset-Backed Securities as compared to 2.89% in the previous
year. The LAIF fair value factor of 0.998126869 was used to calculate the fair value of the investments in
LAIF.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
59
2. CASH AND INVESTMENTS, Continued
D.Risk Disclosures
Interest Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates.
Information about the sensitivity of the fair values of the City's investments to market interest rate
fluctuations is provided by the following table that shows the distribution to the City's investments by
maturity:
Investment Type 12 months or less 13 to 24 months 25 to 60 months Total
Local Agency Investment Fund 37,980,912$ -$ -$ 37,980,912$
Federal Farm Credit Bank 1,976,620 1,966,419 9,897,941 13,840,980
Federal Home Loan Bank - - 4,889,092 4,889,092
Federal Home Loan Mortgage Corp.1,376,999 988,542 10,776,133 13,141,674
Federal National Mortgage Assoic.3,925,807 3,925,807
Certificates of Deposit 243,820 1,280,847 5,220,605 6,745,272
Corporate Bonds 238,171 - - 238,171
Money Market Mutual Funds 1,345,898 - - 1,345,898
Total Investments 43,162,420$ 8,161,615$ 30,783,771$ 82,107,806$
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, 2018, 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, 2018, 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, 2018, 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.
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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
60
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
As of June 30, 2018, 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 13,840,980$ 16.86%
Federal Home Loan Bank 4,889,092 5.95%
Federal Home Loan Mortgage Corp.13,141,674 16.01%
31,871,746$ 38.82%
Percentage
Interest Rate Risk: The City does not have a formal policy relating to interest rate risk.
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, 2018 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 35,797,552$ -$ -$ 35,797,552$ -$
Corporate bonds 238,171 - - 238,171 -
Certificates of deposit 6,745,273 6,745,273 - - -
Money market funds 1,345,898 1,345,898 - - -
Local Agency Investment Fund 37,980,912 37,980,912 - - -
Total investments 82,107,806$ 46,072,083$ -$ 36,035,723$ -$
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, 2018
61
3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
At June 30, 2018, the City had the following due to/from other funds:
Due From Non-Major
Governmental Funds
Due To General Fund 794,983$
Total 794,983$
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, 2018, the City had the following advance to/from other funds:
Funds Water Fund Light Fund Total
Advances From Other Funds
General 3,530,775$ 106,000$ 3,636,775$
Non-Major Governmental Funds - 750,000 750,000
Total 3,530,775$ 856,000$ 4,386,775$
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 $3.5 million in cash reserves.
C. Transfers
At June 30, 2018, the City had the following transfers in/out which arise in the normal course of
operations.
Non-Major
Governmental Internal
General Funds Service Funds Total
General Fund -$ 6,272,065$ -$ 6,272,065$
Non-major Govtl Funds 332,604 - - 332,604
Water Fund - 249,960 - 249,960
Light Fund - 448,462 - 448,462
Non-major Enterprise Funds 810,012 - 132,504 942,516
Internal Service Funds 421,380 101,796 - 523,176
Total 1,563,996$ 7,072,283$ 132,504$ 8,768,783$
Transfers In
Transfers Out
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
62
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, 2018, 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 627,034 2,466,199 3,093,233
Total non-depreciable assets 4,189,050 5,455,172 9,644,222
Depreciable assets:
Land Improvements 4,423,252 1,212,318 5,635,570
Building and improvements 13,014,631 22,635,773 35,650,404
Machinery and equipment 8,725,662 14,253,233 22,978,895
Automotive equipment 3,212,014 3,819,443 7,031,457
Infrastructure 58,897,525 159,818,634 218,716,159
88,273,084 201,739,401 290,012,485
Less accumulated depreciation:
Land Improvements 3,458,054 907,127 4,365,181
Building and improvements 6,833,923 11,214,943 18,048,866
Machinery and equipment 7,790,365 12,014,111 19,804,476
Automotive equipment 2,650,093 3,504,536 6,154,629
Infrastructure 35,159,130 66,184,184 101,343,314
Total accumulated depreciation 55,891,565 93,824,901 149,716,466
Total depreciable assets 32,381,519 107,914,500 140,296,019
Total capital assets 36,570,569$ 113,369,672$ 149,940,241$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
63
4. 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 Balance
June 30, 2017 Additions Retirements Reclassification June 30, 2018
Governmental activities
Non-depreciable assets:
Land 3,562,016$ -$ -$ -$ 3,562,016$
Construction in progress 119,587 1,351,728 (844,281) - 627,034
Total non-depreciable assets 3,681,603 1,351,728 (844,281) - 4,189,050
Depreciable assets:
Land improvements 4,423,252 - - - 4,423,252
Building and improvements 12,901,980 112,651 - - 13,014,631
Machinery and equipment 8,331,493 63,918 - 330,251 8,725,662
Automotive equipment 3,179,245 165,866 (133,097) - 3,212,014
Infrastructure 57,049,209 1,848,316 - - 58,897,525
85,885,179 2,190,751 (133,097) 330,251 88,273,084
Less accumulated depreciation:
Land improvements 3,336,636 121,418 - - 3,458,054
Building and improvements 6,529,590 304,333 - - 6,833,923
Machinery and equipment 7,232,353 236,857 (9,096) 330,251 7,790,365
Automotive equipment 2,653,554 122,430 (125,891) - 2,650,093
Infrastructure 34,116,651 1,042,479 - - 35,159,130
Total accumulated depreciation 53,868,784 1,827,517 (134,987) 330,251 55,891,565
Total depreciable assets, net 32,016,395 363,234 1,890 - 32,381,519
G overnmental activities capital assets, net 35,697,998$ 1,714,962$ (842,391)$ -$ 36,570,569$
Depreciation expense by program for capital assets for the year ended June 30, 2018 was as follows:
General government 107,005$
Public safety 119,040
Community development 16,981
Parks and recreation 294,468
Public works 1,197,285
Internal service funds 92,738
Total Governmental Activities 1,827,517$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
64
4. 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 Balance
June 30, 2017 Additions Retirements Reclassification June 30, 2018
Non-depreciable assets:
Land 2,988,973$ -$ -$ -$ 2,988,973$
Construction in progress 277,884 2,574,576 (386,261) - 2,466,199
Total non-depreciable assets 3,266,857 2,574,576 (386,261) - 5,455,172
Depreciable assets:
Land improvements 1,212,318 - - - 1,212,318
Building and improvements 22,635,773 - - - 22,635,773
Machinery and equipment 14,583,484 - - (330,251) 14,253,233
Automotive equipment 3,918,367 108,800 (207,724) - 3,819,443
Infrastructure 158,486,221 1,332,413 - - 159,818,634
Total depreciable assets 200,836,163 1,441,213 (207,724) (330,251) 201,739,401
Less accumulated depreciation:
Land improvements 868,700 38,427 - - 907,127
Building and improvements 10,720,140 494,803 - - 11,214,943
Machinery and equipment 11,954,489 389,873 - (330,251) 12,014,111
Automotive equipment 3,618,471 92,528 (206,463) - 3,504,536
Infrastructure 61,578,895 4,604,479 - - 66,183,374
Total accumulated depreciation 88,740,695 5,620,110 (206,463) (330,251) 93,824,091
Total depreciable assets, net 112,095,468 (4,178,897) (1,261) - 107,915,310
Business-type activity capital assets, net 115,362,325$ (1,604,321)$ (387,522)$ -$ 113,370,482$
Depreciation expense for the year ended June 30, 2018 was as follows:
Water 3,736,715$
Light 1,353,323
Sewer/Wastewater 496,328
Internal service funds 33,744
Total Business-Type Activities 5,620,110$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
65
5. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of long-term debt transactions including amortization for the year ended
June 30, 2018:
Due in
Balance Balance Due Within More Than
June 30, 2017 Additions Deletion June 30, 2018 One Year One Year
2008 Taxable Pension
Funding Bonds 1,175,000$ -$ (1,175,000)$ -$ -$ -$
2016 TRIP Installment Sale 3,490,000 - (105,000) 3,385,000 105,000 3,280,000
PFA 2003 Certificates
of Participation 1,745,000 - (285,000) 1,460,000 300,000 1,160,000
Capital Lease - 162,000 (39,111) 122,889 39,393 83,496
Unamortized Premiums 165,227 - (3,672) 161,555 - 161,555
Unamortized Discounts (7,197) 2,130 - (5,067) - (5,067)
Subtotal 6,568,030 164,130 (1,607,783) 5,124,377 444,393 4,679,984
Note payable - Successor Agency 8,208,833 - - 8,208,833 - 8,208,833
Total long-term debt 14,776,863$ 164,130$ (1,607,783)$ 13,333,210$ 444,393$ 12,888,817$
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, 2018, was $3,385,000.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
66
5. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding certificates of participation as of June 30, 2018,
including interest, are as follows:
Year Ending June 30, Principal Interest Total
2019 105,000$ 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 125,000 104,394 229,394
2024-2028 710,000 430,709 1,140,709
2029-2033 870,000 277,919 1,147,919
2034-2038 1,010,000 134,863 1,144,863
2039 220,000 7,150 227,150
Total 3,385,000$ 1,417,560$ 4,802,560$
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, 2018, was $1,460,000.
The annual requirements to repay the outstanding indebtedness at June 30, including interest, are shown
in the schedule below:
Year Ending June 30, Principal Interest Total
2019 300,000$ 57,337$ 357,337$
2020 315,000 44,071 359,071
2021 845,000 18,590 863,590
Total 1,460,000$ 119,998$ 1,579,998$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
67
5. 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, 2018 is $8,208,833.
B. Business-Type Activities
The City’s debt issues and transactions of business-type activities are summarized below and discussed
in detail thereafter.
Due in
Balance Balance Due Within More Than
June 30, 2017 Additions Deletion June 30, 2018 One Year One Year
2012 Water Refunding Bonds, Series A 5,910,000$ -$ (755,000)$ 5,155,000$ 780,000$ 4,375,000$
2015 Water System Refunding Revenue Bonds 46,590,000 - (1,185,000) 45,405,000 1,245,000 44,160,000
2003 Certificates of Participation, Series C 130,000 - (130,000) - - -
2012 Electric Refunding Revenue Bonds, Series B 5,820,000 - (650,000) 5,170,000 795,000 4,375,000
2011 Sewer Installment, Series A 730,000 - (175,000) 555,000 180,000 375,000
2011 Sewer Installment, Series B 3,260,000 - (210,000) 3,050,000 220,000 2,830,000
Unamortized Premiums 3,589,433 - (246,612) 3,342,821 - 3,342,821
Total long-term debt 66,029,433$ -$ (3,351,612)$ 62,677,821$ 3,220,000$ 59,457,821$
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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and
January 1.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
68
5. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2012 Water Refunding Revenue Bonds, Continued
The annual requirements to amortize the outstanding bonds as of June 30, 2018, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2019 780,000$ 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 910,000 70,500 980,500
2024 955,000 23,875 978,875
Total 5,155,000$ 757,075$ 5,912,075$
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 $3,035,000. Interest ranges from 3.000% to 5.000% and is payable
semi-annually on July 1 and January 1.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
69
5. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2015 Water System Refunding Revenue Bonds, Continued
The annual requirements to amortize the outstanding bonds as of June 30, 2018, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2019 1,245,000$ 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 1,520,000 1,577,938 3,097,938
2024-2028 8,830,000 6,656,988 15,486,988
2029-2033 10,715,000 4,768,069 15,483,069
2034-2038 13,015,000 2,473,038 15,488,038
2038-2040 5,950,000 240,400 6,190,400
Total 45,405,000$ 22,734,308$ 68,139,308$
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 $582,000. As of June 30, 2018, the
reserve requirement was fully funded.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
70
5 LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
The annual requirements to amortize the outstanding bonds as of June 30, 2018, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2019 795,000$ 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 905,000 40,909 945,909
2024 930,000 13,950 943,950
Total 5,170,000$ 500,484$ 5,670,484$
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 $505,000. Interest rates on the Series B installments are 3.600%.
The annual requirements to amortize the outstanding installment agreements as of June 30, 2018,
including interest are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total
2019 180,000$ 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 - - - 455,000 61,110 516,110
2024-2026 - - - 1,470,000 80,460 1,550,460
Subtotal 555,000$ 24,433$ 579,433$ 3,050,000 511,740$ 3,561,740$
2011 Sewer Installment, Series A 2011 Sewer Installment, Series B
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
71
5. LONG-TERM DEBT, Continued
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, 2018, the total outstanding balances of the special
tax bonds were $45,390,487
6. 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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
72
6. COMPENSATED ABSENCES, Continued
The City accrues the liability for compensated leave as it is earned by employees. The amount of
compensated leaves payable outstanding was $4,984,988 as of June 30, 2018.
Due in
Balance Balance Due Within More Than
June 30, 2017 Additions Deletions June 30, 2018 One Year One Year
Governmental Activities
Compensated Leaves Payable 3,904,534$ 3,674,912$ (3,956,565)$ 3,622,881$ 105,342$ 3,517,539$
Business-Type Activities
Compensated Leaves Payable 1,295,853$ 1,094,100$ (1,027,846)$ 1,362,107$ 1,034,451$ 327,656$
7. 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 10,256,702$ 38,031,448$ 704,297$ 5,466,222$
CALPERS Cost Sharing Plan - Safety 11,084,171 34,160,281 1,202,614 5,423,767
PARS Agent Multiple Employer Plan - AMMA 324,257 1,064,946 138,122 142,591
PARS Agent Multiple Employer Plan - Executives 135,090 2,036,152 - 296,593
PARS Agent Multiple Employer Plan - IBEW 250,895 1,148,745 44,752 142,379
PARS Agent Multiple Employer Plan - SEIU 60,453 215,478 - 19,426
Total 22,111,568$ 76,657,050$ 2,089,785$ 11,490,978$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
73
7. 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 8.778%8.778%
Required UAL payment 1,761,005$ -$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
74
7. 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 23.722%21.667%12.729%
Required UAL payment 1,457,900$ 6$ 85$
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 322
Inactive employees entitled to but not yet
receiving benefits 266
Active employees 224
Total 812
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, 2018
75
7. 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, 2017, 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, 2016 0.34338%
Proportion - June 30, 2017 0.34445%
Change - Increase (Decrease)0.00107%
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, 2016 actuarial valuations were
determined using the following actuarial assumptions:
Miscellaneous Agent Multiple
Employer Plan Safety Cost Sharing Plan
Valuation Date June 30, 2016 June 30, 2016
Measurement Date June 30, 2017 June 30, 2017
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.15%7.15%
Inflation 2.75%2.75%
Salary Increases
Investment Rate of Return (1)7.15%7.15%
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, 2018
76
7. 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 7.15% 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 7.15 percent discount rate
is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected
discount rate of 7.15 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, 2018
77
7. 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 47.00% 4.90% 5.38%
Global Fixed Income 19.00% 0.80% 2.27%
Inflation Sensitive 6.00% 0.60% 1.39%
Private Equity 12.00% 6.60% 6.63%
Real Estate 11.00% 2.80% 5.21%
Infrastructure and Forestland 3.00% 3.90% 5.36%
Liquidity 2.00% -0.40% -0.90%
Total 100.00%
(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, 2018
78
7. 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, 2016 $ 130,389,073 $ 98,227,607 $ 32,161,466
Changes in the year:
Service cost 2,520,416 - 2,520,416
Interest on the total pension liability 9,773,270 - 9,773,270
Differences between actual and expected
experience (454,282) - (454,282)
Changes in assumptions 8,401,425 - 8,401,425
Changes in benefit terms - - -
Plan to Plan Resource Movement - (20) 20
Contribution - employer - 2,602,264 (2,602,264)
Contribution - employee - 1,191,434 (1,191,434)
Net investment income - 10,722,195 (10,722,195)
Administrative expenses - (145,026) 145,026
Benefit payments , including refunds of
employee contributions (5,814,688) (5,814,688) -
Net changes 14,426,141 8,556,159 5,869,982
Balance at June 30, 2017 $ 144,815,214 $ 106,783,766 $ 38,031,448
Increase (Decrease)
For the measurement period ended June 30, 2017, the City contributed $2,711,578 for the Cost Sharing
Plan.
As of June 30, 2018, the City reported net pension liabilities for its proportionate share of the net pension
liability of the Cost Sharing Plan of $34,160,281.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
79
7. 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:
CalPERS
Miscellaneous
Agent Multiple
Employer Plan
CalPERS Safety
Cost Sharing
Plan
Total CalPERS'
Plans
1% Decrease
Net Pension Liability 58,535,066 51,528,558 110,063,624
Current Discount Rate
Net Pension Liability 38,031,448 34,160,281 72,191,729
1% Increase
Net Pension Liability 21,218,245 19,962,579 41,180,824
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, 2018, the City recognized pension expense of $5,466,222 for the Miscellaneous
Agent Multiple Employer Plan and $5,423,767 for the Safety Cost Sharing Plan.
At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following source for the Miscellaneous Agent Multiple Employer Plan:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 3,143,487$ -$
Differences between actual and expected
experience - (630,346)
Changes in assumptions 5,504,382 (73,951)
Net differences between projected and actual
earnings on plan investments 1,608,833 -
Total 10,256,702$ (704,297)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
80
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$3,143,487 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, 2019. 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:
2019 2,345,160
2020 4,177,651
2021 644,665
2022 (758,558)
At June 30, 2018, 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 $ 3,080,129 $ -
Differences between actual and expected
experience 362,517 (94,518)
Changes in assumptions 5,257,402 (403,362)
Changes in employer's proportion 355,755 (321,352)
Differences between the employer's
contribution and the employer's
proportionate share of contributions 882,048 (383,382)
Net differences between projected and actual
earnings on plan investments 1,146,320 -
Total 11,084,171$ (1,202,614)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
81
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$3,080,129 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, 2019. 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:
2019 $ 1,915,341
2020 3,635,768
2021 1,921,070
2022 (670,751)
Payables to the Pension Plan
At June 30, 2018, 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, 2018
82
7. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Benefits Provided
The PARS Retirement Enhancement Plans’ provisions and benefits in effect at June 30, 2018 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, 2018, 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 6511 2
Inactive employees entitled to but not yet
receiving benefits 7312 6
Active employees 20 4 50 9
Total 33 12 73 17
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, 2018 (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, 2018
83
7. 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
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
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, 2018
84
7. 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
Target Expected Arithmetic Expected Geometric
Asset Class Index Allocation Real Rate of Return Real Rate of Return
US Cash BAML 3-Mon Tbill 4.06%36.00%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
Target Expected Arithmetic Expected Geometric
Asset Class Index Allocation Real Rate of Return Real Rate 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, 2018
85
7. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Net Pension Liability, Continued
IBEW
Long-Term Long-Term
Target Expected Arithmetic Expected Geometric
Asset Class Index Allocation Real Rate of Return Real Rate 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
Target Expected Arithmetic Expected Geometric
Asset Class Index Allocation Real Rate of Return Real Rate 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, 2018
86
7. 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
Changes in assumptions - - -
Economic/demographic gains or losses - - -
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
Changes in assumptions - - -
Economic/demographic gains or losses - -
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, 2018
87
7. 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
Changes in assumptions - - -
Economic/demographic gains or losses - - -
Contribution - employer - 207,056 (207,056)
Contribution - employee - 76,124 (76,124)
Net investment income - 225,236 (225,236)
Administrative expenses - (8,238) 8,238
Benefit payments , including refunds of
employee contributions (113,110) (113,110) -
Net changes 214,261 387,068 (172,807)
Balance at June 30, 2017 $ 3,364,706 $ 2,215,934 $ 1,148,772
Increase (Decrease)
SEIU Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2017 $ 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
Changes in assumptions - - -
Economics/Demographic gains or losses - - -
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, 2018 $ 610,072 $ 394,594 $ 215,478
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
88
7. 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:
AMMA Executive IBEW SEIU Total PARS' Plans
1% Decrease
Net Pension Liability $ 1,508,564 $ 2,417,894 $ 1,602,076 $ 293,673 3,926,458$
Current Discount Rate
Net Pension Liability $ 1,064,946 $ 2,036,152 $ 1,148,745 $ 215,478 3,101,098$
1% Increase
Net Pension Liability $ 691,030 $ 1,718,645 $ 768,821 $ 150,471 2,409,675$
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, 2018, 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, 2018
89
7. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
At June 30, 2018, 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
Pension contributions subsequent to
measurement date 205,227$ -$ 110,296$ -$
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 324,257$ (138,122)$ 135,090$ -$
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 199,529$ -$ 26,688$ -$
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 250,895$ (44,752)$ 60,453$ -$
AMMA Executive
IBEW SEIU
$205,227, $110,296, $199,529, and $26,688 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, 2019. Other 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
2019 $ 7,416 $ 14,255 $ 16,483 $ 13,110
2020 7,417 14,257 16,482 13,111
2021 (8,427) 5,560 2,809 10,761
2022 (25,498) (9,278) (22,665) (3,217)
2023 - - (4,331) -
Thereafter - - (2,164) -
Payables to the Pension Plan
At June 30, 2018, 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, 2018
90
7. 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, 2018, the
covered payroll for employees in the plan was $7,263,771. Total payroll for the City was $32,132,261. 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, 2018, the employer and
the employees each contributed an amount equal to $693,050. Under this plan, normal retirement age is 60
years of age. Plan assets are primarily invested in money market funds.
8. 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, 2018
91
8. 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, 2018, and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2017.
Actuarial Assumptions
The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement date..
Valuation Date June 30, 2017
Measurement Date June 30, 2018
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
3%. Individual salary increases based on CalPERS
Derived using CalPERS' Membership Data for all Funds
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, 2018
92
8. POST-EMPLOYMENT BENEFITS, Continued
F. Changes in the Total OPEB Liability
Total OPEB Liability
Balance at June 30, 2017 $ 39,003,630
Changes in the year:
Service cost 1,756,411
Interest on the total pension liability 1,348,787
Differences between actual and
expected experience -
Benefit payments, including refunds
of employee contributions (635,726)
Implicit rate subsidy fulfilled (298,017)
Net changes 2,171,455
Balance at June 30, 2018 $ 41,175,085
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 48,411,696$
Current Discount Rate - 3.50%
Total OPEB liability 41,175,085$
1% Increase - 4.50%
Total OPEB liability 35,405,567$
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 33,995,214$
Current Discount Rate - 7.00% Decreasing to 3.94%
Total OPEB liability 41,175,085$
1% Increase - 8.00% Decreasing to 4.94%
Total OPEB liability 50,545,371$
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $3,105,198. As of June 30, 2018,
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, 2018
93
9. 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, 2018
94
9. 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 2017-18 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
$10 million are pooled among members.
C. Independent Cities Risk Management Authority (ICRMA)
Prior to July 1, 2017, the City was a member of Independent Cities Risk Management Authority (ICRMA)
for general liability and worker’s compensation claims. The City retains responsibility for its self-insured
portion of claims incurred prior to July 1, 2016.
D. Claim Liability
The City’s claims activity is recorded in its internal service funds. Estimated liabilities are recorded when
it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims
that have been incurred but not reported (IBNRs) are also included in the liability estimates. A summary
of the changes in claims liabilities for the past three fiscal years follows.
Fiscal Year
Claims Claims and Claims
For the Years Payable Changes in Claims Payable Due Within
Ended June 30, July 1 Estimates Payments June 30 One Year
2016 1,430,273$ 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
2018 3,232,622 1,049,005 (1,494,245) 2,787,382 1,000,000
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
95
10. 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,
2018, is as follows:
Assets:
Current assets $ 4,713,848
Restricted assets 1,476,249
Capital assets 9,436,931
Total assets 15,627,028
Deferred outflows of resources:
Deferred pension related items 442,723
Total deferred outflows of resources 442,723
Liabilities:
Current liabilities 613,898
Noncurrent liabilities 4,882,498
Total liabilities 5,496,396
Deferred inflows of resources
Deferred pension related items 32,090
Total deferred inflows of resources 32,090
Net position:
Net investment in capital assets 5,831,931
Restricted 1,476,249
Unrestricted 3,233,085
Total net position $ 10,541,265
Condensed Statement of Net Position
Sewer charges $ 2,979,516
Depreciation expense (496,328)
Other operating expenses (1,946,750)
Operating income 536,438
Nonoperating revenues(expenses):
Investment earnings 77,196
Interest expense (127,012)
Special franchise fees (60,369)
Transfers out (119,004)
Change in net position 307,249
Beginning net position, as restated 10,234,016
Ending net position $ 10,541,265
Condensed Statement of Revenues, Expenses
and Changes in Net Position
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
96
10. SEGMENTS OF ENTERPRISE ACTIVITIES, Continued
Net cash provided by (used in):
Operating activities $ 1,143,336
Noncapital financing activities (119,004)
Capital and related financing activities (573,583)
Investing activities 77,871
Net increase in cash 528,620
Beginning cash and cash equivalents 5,299,851
Ending cash and cash equivalents $ 5,828,471
Condensed Statement of Cash Flows
11. 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, 2018, the City's entitlement of significant projects of SCPPA includes the following: 1% of
SCPPA's $820,475,500 investment (at cost) in the Palo Verde Nuclear Generating Station (with related SCPPA
indebtedness of $0), 0.7% of SCPPA's $58,336,000 investment (at cost) in Mead - Phoenix Transmission Project
(with related SCPPA indebtedness of $175,010), 2.21% of SCPPA's $173,782,000 investment (at cost) in Mead
- Adelanto Transmission Project (with related SCPPA indebtedness of $1,288,718), and 14.7% of SCPPA's
$3,917,000 investment (at cost) in the San Juan Generating Station (with related indebtedness of $0). Per
SCCPA Joint Powers Agreement, the distribution of any residual equity at event of SCCPA liquidation will
be determined by the SCCPA Board of Directors, as such no investment in joint venture in SCCPA is reported
for the above mentioned projects.
12. RATE STABILIZATION FUND
The City of Azusa has provided for a rate stabilization fund in the amount of $10,023,398 (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, 2018
97
13. 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, 2018
98
13. 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, 2017 Additions Retirements June 30, 2018
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 921,736 58,400 - 980,136
Building and Structures 304,225 46,803 - 351,028
Infrastructure 157,543 23,949 - 181,492
Total accumulated depreciation 1,383,504 129,152 - 1,512,656
Net capital assets being depreciated 1,230,771 (129,152) - 1,101,619
Capital Assets, net 1,641,191$ (129,152)$ -$ 1,512,039$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
99
13. 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, 2017 Additions Deletions June 30, 2018 One Year
Fiduciary Funds
2007 TABS, Series A 3,945,000$ -$ (3,945,000)$ -$ -$
2007 TABS, Series B 3,930,000 - (3,930,000) - -
2014 Refunding TAB 9,025,000 - (705,000) 8,320,000 730,000
2015 Refunding TAB, Series A 14,315,000 - - 14,315,000 -
2015 Refunding TAB, Series B 15,705,000 - (315,000) 15,390,000 325,000
2017 Refunding TABS, Series A - 3,510,000 - 3,510,000 695,000
2017 Refunding TABS, Series B - 3,615,000 - 3,615,000 230,000
Unamortized premium (discount)214,322 - 26,165 240,487 -
Total Fiduciary Funds 47,134,322$ -$ (8,868,835)$ 45,390,487$ 1,980,000$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
100
13. 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 $9,025,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2018, including
interest are as follows:
Year Ending June 30, Principal Interest Total
2019 730,000$ 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 905,000 189,769 1,094,769
2024-2028 2,810,000 430,719 3,240,719
2029-2033 805,000 153,075 958,075
2034-2035 615,000 33,441 648,441
Total 8,320,000$ 1,985,454$ 10,305,454$
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 $2,635,000 maturing on August 1, 2016 through
August 1, 2036. The bonds carry interest rates of 1.00% and 4.50%.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
101
13. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2018, including
interest are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total
2019 -$ 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 - 504,213 504,213 355,000 569,000 924,000
2024-2028 - 2,521,063 2,521,063 8,740,000 2,124,316 10,864,316
2029-2033 7,270,000 2,057,619 9,327,619 4,960,000 353,475 5,313,475
2034-2037 7,045,000 425,100 7,470,100 - - -
Total 14,315,000$ 7,524,847$ 21,839,847$ 15,390,000$ 5,419,691$ 20,809,691$
2015 Subordinate Bond, Series A 2015 Subordinate Bond, Series B
2017 Tax Allocation Refunding Bonds, Series A & B
The Successor Agency to the Redevelopment Agency of the City of Azusa issued $7,125,000 of Tax
Allocation Bonds, Series A & B dated November 2, 2017. Proceeds of the bonds were used 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 $151,451, 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 achieve
approximately $1,441,324 in net savings (economic gain on refunding) over the remaining life of the bonds.
The bonds are due in annual installments ranging from $50,308 to $1,114,626 maturing on February 1,
2018 through August 1, 2032. The bonds carry interest rates of 3.13% and 2.59%.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2018, including
interest are described on the following page.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
102
13. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, Continued
2017 Tax Allocation Refunding Bonds, Series A & B, Continued
Year Ending
June 30, Principal Interest Total Principal Interest Total
2019 695,000$ 98,986$ 793,986$ 230,000$ 90,650$ 320,650$
2020 675,000 77,546 752,546 205,000 85,017 290,017
2021 690,000 56,184 746,184 210,000 79,643 289,643
2022 715,000 34,195 749,195 210,000 74,204 284,204
2023 735,000 11,503 746,503 220,000 68,635 288,635
2024-2028 - - - 1,190,000 253,561 1,443,561
2029-2033 - - - 1,350,000 89,226 1,439,226
Total 3,510,000$ 278,414$ 3,788,414$ 3,615,000$ 740,934$ 4,355,934$
2017 Tax Allocation Refunding Bonds, Series A 2017 Tax Allocation Refunding Bonds, Series B
14. NEGATIVE FUND BALANCE
At June 30, 2018, the following funds reported negative fund balances:
Community Development Block Grant Special Revenue Fund $26,440
Capital Projects Fund $541
Consumer Services Internal Service Fund $3,433,381
Self Insurance Internal Service Fund $2,136,361
IT Services Internal Service Fund $2,050,272
The City believes the above noted deficits will be eliminated by collection of outstanding grant receivables
and future service charges.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
103
15. FUND BALANCE/NET POSITION DEFICIT AND EXPENDITURES IN EXCESS OF
APPROPRIATIONS
The following funds had expenditures in excess of appropriations:
Major:
General Fund 1,515,029$
Non-Major:
Special Revenue Funds - Senior Nutrition 17,694$
Public Financing Authority Fund 6,163$
The expenditures in excess over appropriations were due to payroll expenses for the police department
higher than anticipated.
16. 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.
Encumbrances outstanding as of June 30, 2018, were as listed below:
Amount
Major Governmental Fund:
General Fund $ 77,789
Total Major Governmental Fund 77,789
Non-Major Governmental Funds:
Special Revenue Funds
Measure R 148,897
Proposition A 9,390
Proposition C 9,390
Community Development Block Grant 2,235
Grants & Seizures 5,224
AB939 FEES 787
Capital Project Funds
Public Works Endowment 4,188
Total Non-Major Governmental Funds 180,111
Total Governmental Fund Encumbrances $ 257,900
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2018
104
17. PRIOR PERIOD ADJUSTMENTS
The City recorded a prior period adjustments to report PARS pension amounts with a June 30, 2017
measurement date, so that the financial reporting can be reported in a timelier basis.
Government-Wide Statements
Deferred Deferred
Net Position Outflows of Net Inflows of Net Position
as previously Resources - Pension Resources - as
Reported Pension Liability Pension Restated
Government-Wide Statements
Governmental Activities (22,204,511)$ 386,459$ (147,873)$ (18,323)$ (21,984,248)$
Business-Type Activities 106,286,947$ 667,995$ (255,599)$ (31,670)$ 106,667,673$
Prior Period Adjustment
Fund Statements
Fund Balance,
as Previously
Reported
Deferred
outflows of
resources -
Pension
Net pension
liability
Deferred inflow
s of resources -
Pension
Fund Balance,
as
Restated
Fund Statements
Proprietary Funds
Water Enterprise Fund $ 52,946,556 $ 180,206 $ (68,953) $ (8,544) $ 53,049,265
Light Enterprise Fund 46,200,319 248,640 (95,139) (11,788) 46,342,032
Non-Major Enterprise Funds 10,372,088 13,708 (5,245) (650) 10,379,901
Internal Service Funds (6,769,625) 287,866 (110,148) (13,648) (6,605,555)
Prior Period Adjustments
105
REQUIRED
SUPPLEMENTARY INFORMATION
City of Azusa
Required Supplementary Information
For the year ended June 30, 2018
106
1. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – CALPERS
AGENT MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS
2016-17 2015-16 2014-15 2013-14
TOTAL PENSION LIABILITY
Service Cost 2,520,416$ 2,295,028$ 2,302,623$ 2,375,239$
Interest 9,773,270 9,381,992 8,989,759 8,658,209
Difference Between Expected and Actual Experience (454,282) (892,890) (1,723,872) -
Changes of Assumptions 8,401,425 - (2,292,502) -
Benefit Payments, Including Refunds of Employee Contributions (5,814,688) (5,561,682) (4,975,226) (4,845,540)
Net Change in Total Pension Liability 14,426,141 5,222,448 2,300,782 6,187,908
Total Pension Liability - Beginning 130,389,073 125,166,625 122,865,843 116,677,935
Total Pension Liability - Ending (a)144,815,214$ 130,389,073$ 125,166,625$ 122,865,843$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 2,602,264$ 2,381,498$ 1,979,679$ 2,043,584$
Contributions - Employee 1,191,434 1,066,129 1,032,337 1,029,164
Difference in projected and actual earnings - - - -
Plan to plan resource movement (20) - (145) (4,845,540)
Net Investment Income 10,722,195 522,172 2,198,171 14,908,401
Benefit Payments, Including Refunds of Employee Contributions (5,814,688) (5,561,682) (4,975,226) -
Other Changes in Fiduciary Net Position (145,026) (60,872) (112,413) -
Net Change in Fiduciary Net Position 8,556,159 (1,652,755) 122,403 13,135,609
Plan Fiduciary Net Position - Beginning 98,227,607 99,880,362 99,757,959 86,622,350
Plan Fiduciary Net Position - Ending (b)106,783,766$ 98,227,607$ 99,880,362$ 99,757,959$
Plan Net Position Liability/(Asset) - Ending (a) - (b)38,031,448$ 32,161,466$ 25,286,263$ 23,107,884$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 73.74%75.33%79.80%81.19%
Covered Payroll 15,065,169$ 14,113,224$ 14,429,034$ 14,720,773$
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 252.45%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, 2016 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 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent.
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, 2018
107
2. SCHEDULE OF CONTRIBUTIONS – CALPERS AGENT MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS
2018 2017 2016 2015
Misellaneous
Actuarially Determined Contributions 3,143,487$ 2,602,264$ 2,381,498$ 1,979,679$
Contribution in Relation to the Actuarially Determined Contribu (3,143,487) (2,602,264) (2,381,498) (1,979,679)
Contribution Deficiency(Excess)- - - -
Covered Payroll 14,947,756 15,065,169 14,113,224 14,429,034
Contributions as a Percentage of Covered Payroll 21.03% 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:6/30/2017 6/30/2016 6/30/2015 6/30/2014
Proportion of the net pension liability 0.34445% 0.34338% 0.33263% 0.31257%
Proportionate share of the net pension liability 34,160,281$ 29,713,239$ 22,831,275$ 19,449,591$
Covered payroll 3,648,273$ 5,940,696$ 6,649,731$ 6,343,000$
Proportionate share of the net pension liability as a
percentage of covered payroll 936.34% 500.16% 343.34% 306.63%
Plan's share of fiduciary net position as a percentage
of total pension liability 73.31%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, 2018
108
4. SCHEDULE OF CONTRIBUTIONS – COST SHARING MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS
2018 2017 2016 2015
Contractually required contribution (actuarially
determined)3,080,129$ 2,711,578$ 2,408,176$ 2,475,434$
Contribution in relation to the actuarially
determined contributions (3,080,129) (2,711,578) (2,408,176) (2,475,434)
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 4,561,311$ 3,648,273$ 5,940,696$ 6,649,731$
Contributions as a percentage of covered payroll 67.53% 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, 2018
109
6. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –
EXECUTIVE PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
Measurement Period 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 (139,808) (127,936) (125,424)
Net Change in Total Pension Liability 66,280 381,948 50,862
Total Pension Liability - Beginning 3,012,837 2,630,889 2,580,027
Total Pension Liability - Ending (a)3,079,117$ 3,012,837$ 2,630,889$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (139,808)$ (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 92,456 (44,857) (26,024)
Plan Fiduciary Net Position - Beginning 950,509 995,366 1,021,390
Plan Fiduciary Net Position - Ending (b)1,042,965$ 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 33.87%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%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2018
110
7. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – IBEW
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS
Measurement Period 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%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2018
111
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 Pa yments, 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 Pa yments, 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, 2018
112
9. SCHEDULE OF CONTRIBUTIONS –PARS RETIREMENT ENHANCEMENT PLANS – LAST 10
YEARS
2018 2017 2016 2015
AMMA Bargaining Group
Actuarially determined contribution 246,301$ 213,675$ 173,709$ 212,245$
Contribution in relation to the actuarially determined contributions (205,227) (201,498) (172,526) (138,866)
Contribution deficiency (excess)41,074$ 12,177$ 1,183$ 73,379$
Covered payroll 2,233,183$ 1,937,372$ 1,880,944$ 2,128,243$
Contributions as a percentage of covered payroll 9.19% 10.40% 9.17% 6.52%
Executive/ Contract Bargaining Group
Actuarially determined contribution 188,891$ 175,353$ 91,425$ 138,680$
Contribution in relation to the actuarially determined contributions (110,296) (124,997) (97,284) (78,751)
Contribution deficiency (excess)78,595$ 50,356$ (5,859)$ 59,929$
Covered payroll 746,686$ 692,804$ 672,625$ 990,274$
Contributions as a percentage of covered payroll 14.77% 18.04% 14.46% 7.95%
IBEW Employees
Actuarially determined contribution 199,203$ 208,580$ 214,921$ 220,708$
Contribution in relation to the actuarially determined contributions (199,529) (207,056) (214,921) (153,146)
Contribution deficiency (excess)(326)$ 1,524$ -$ 67,562$
Covered payroll 3,635,100$ 3,805,104$ 4,117,972$ 4,060,559$
Contributions as a percentage of covered payroll 5.49% 5.44% 5.22% 3.77%
SEIU Bargaining Group
Actuarially determined contribution 36,975$ 31,990$ 19,683$ 23,063$
Contribution in relation to the actuarially determined contributions (26,688) (26,555) (24,410) (12,890)
Contribution deficiency (excess)10,287$ 5,435$ (4,727)$ 10,173$
Covered payroll 648,802$ 561,325$ 544,976$ 620,510$
Contributions as a percentage of covered payroll 4.11% 4.73% 4.48% 2.08%
Note to Schedule
Valuation date:
Methods and assumptions used to determine contribution rates:
Single and Agent Employers Example
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
Post-retirement: CalPERS 1997-2011
Healthy Retiree Tables
Entry age
Level percentage of payroll, closed
9.5 years
5-year smoothed market
2.75%
(1) Historical information is required only for measurement periods for which GASB 68 is applicable
6/30/2017
12.2% for 0 years of service, reduced as the
years of service increased, to 3.5% for 30 or
more years of services
6.50%
67 yrs.
Pre-retirement: Consistent with the Non-
Industrial Rates used to value the Misc
Public Agency CalPERS Pension Plans
City of Azusa
Required Supplementary Information
For the year ended June 30, 2018
113
10. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED RATIOS –
LAST 10 YEARS
2018 2017
Total OPEB liability
Service cost $ 1,756,411 $ 1,705,253
Interest on the total pension liability 1,348,787 1,275,916
Plan to Plan Resource Movement - -
Contribution - employer (635,726) (588,634)
Contribution - employee - -
Net investment income - -
Implicit rate subsidy fulfilled (298,017) (275,942)
Net changes 2,171,455 2,116,593
Total OPEB liability - beginning of year 39,003,630 36,887,037
Total OPEB liability - end of year 41,175,085 $ 39,003,630
Covered payroll $ 20,340,713 $ 20,340,713
City's total OPEB liability as a percentage of covered payroll 202.43%191.75%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2018
114
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, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 25,063,905$ 25,063,905$ 25,063,905$ -$
Resources (Inflows):
Taxes 31,498,416 31,748,681 32,657,297 908,616
Assessments 1,924,810 1,995,680 2,232,012 236,332
Licenses and permits 949,400 949,400 1,112,986 163,586
Intergovernmental 436,600 436,600 400,965 (35,635)
Charges for services 1,631,250 1,786,200 1,875,700 89,500
Use of money and property 2,857,500 1,433,500 (74,878) (1,508,378)
Fines and forfeitures 1,114,350 1,039,350 1,124,080 84,730
Contributions 3,000 3,000 8,721 5,721
Miscellaneous 265,000 265,000 111,024 (153,976)
Transfers in 1,563,990 1,563,990 1,563,996 6
Capital lease financing - - 162,000 162,000
Proceeds from sale of capital assets 1,000 1,000 1,034,927 1,033,927
Amounts available for appropriations 67,309,221 66,286,306 67,272,735 986,429
Charges to Appropriations (Outflows):
General government
City Council 132,310 132,310 124,652 7,658
City Attorney 250,000 250,000 274,272 (24,272)
Administration 409,160 459,198 529,210 (70,012)
Promotion/Membership 152,460 152,460 158,110 (5,650)
City Clerk 641,240 651,266 545,360 105,906
Library Services - General 1,220,440 1,227,126 1,084,147 142,979
Library Services - Youth 31,430 31,430 28,604 2,826
Finance - Accounting 1,132,930 1,139,842 1,185,942 (46,100)
Cash Management 182,430 182,430 175,140 7,290
Purchasing 241,590 242,216 247,076 (4,860)
Printing Services 9,000 9,000 7,916 1,084
Human Resources 421,460 421,900 441,592 (19,692)
City-wide 4,121,290 4,134,257 4,346,415 (212,158)
Admin Services / Business Lic 3,100 3,100 3,305 (205)
Business License 173,305 173,981 159,352 14,629
Public Safety
Police 16,348,670 17,339,284 19,217,936 (1,878,652)
Emergency Services 5,950 5,950 3,470 2,480
Police Department Contracts 800,168 841,168 833,718 7,450
Pension Safety 3,850 3,850 1,850 2,000
INF 437,310 438,874 500,750 (61,876)
Community development
Planning 518,740 519,148 440,969 78,179
Building regulation 704,370 789,025 684,166 104,859
Code Enforcement 868,096 995,830 849,820 146,010
Parks and recreation
Recreation 1,437,759 1,443,133 1,497,716 (54,583)
Parks and maintenance 1,895,730 2,051,364 2,038,541 12,823
Senior programs 172,020 173,504 158,492 15,012
Women's Club 17,870 18,027 19,211 (1,184)
Public works
Engineering Services 155,420 155,420 137,995 17,425
Graffiti Removal 25,700 25,700 9,132 16,568
Facilities Maintenance 559,285 652,695 631,420 21,275
Capital outlay 189,608 522,598 882,429 (359,831)
Debt service:
Principal retirement 1,177,660 1,216,670 1,214,111 2,559
Interest and fiscal charges 76,375 660,030 144,999 515,031
Transfers out 6,627,282 6,272,067 6,272,064 3
Total charges to appropriations 41,144,008 43,334,853 44,849,882 (1,515,029)
Budgetary fund balance, June 30 26,165,213$ 22,951,453$ 22,422,853$ (528,600)$
Budget Amounts
115
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116
SUPPLEMENTARY INFORMATION
117
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
Grant and Seizure Special Revenue Fund
To account for various federal, state, and local grants which the City receives.
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.
118
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.
RMR SB1
This fund is used to account for restricted State SB1 monies and related expenditures.
Measure M
This fund is used to account for restricted Los Angeles County Measure M monies and related expenditures.
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.
119
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2018
Community
Grant and State Development
Seizure Fund Gasoline Tax Proposition A Proposition C Block Grant
ASSETS
Pooled cash and investments 2,451,638$ 104,945$ 2,026,453$ 1,871,723$ -$
Receivables:
Accounts 406,798 1,015 39,947 71,661 106,268
Taxes - - - - -
Notes and loans - - - - 57,237
Accrued interest - - 4,220 4,023 -
Prepaid costs 659 - 150 50 -
Restricted assets:
Cash and investments with fiscal agents - - - - -
Total assets 2,859,095$ 105,960$ 2,070,770$ 1,947,457$ 163,505$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 382,026$ 44,290$ 39,865$ 82,268$ 4,939$
Accrued liabilities 5,070 47,274 29,403 24,028 7,765
Unearned revenues 777,636 - - 6,034 -
Deposits payable - - - - -
Due to other funds - - - - 120,004
Advances from other funds - - - - -
Total liabilities 1,164,732 91,564 69,268 112,330 132,708
DEFERRED INFLOW OF RESOURCES
Unavailable revenues 320,628 - 36,041 9,818 57,237
Total deferred inflow of resources 320,628 - 36,041 9,818 57,237
FUND BALANCES
Nonspendable:
Prepaid costs 659 - 150 50 -
Restricted for:
Community development projects 1,422,211 - 1,965,311 1,825,259 -
Public safety 200,198 - - - -
Capital projects 82,128 14,396 - - -
Debt service - - - - -
Committed for:
Employee benefits - - - - -
Unassigned (331,461) - - - (26,440)
Total fund balances 1,373,735 14,396 1,965,461 1,825,309 (26,440)
Total liabilities, deferred inflows
of resources, and fund balances 2,859,095$ 105,960$ 2,070,770$ 1,947,457$ 163,505$
Special Revenue Funds
120
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee Utility
Citizen Program Improvement Enforcement Fire Safety Nursery Benefits Mitigation
59,130$ 1,118,981$ 164,962$ 450,416$ 343,219$ 410,115$ 496,672$ 1,179,309$
(1,404) 68,037 16,383 - - 3,172 1,394 -
- - - - - 6,153 - -
- 226 - - - - - -
- 2,402 349 - - 798 - -
1,250 845 - - - - - -
- - - - - - - -
58,976$ 1,190,491$ 181,694$ 450,416$ 343,219$ 420,238$ 498,066$ 1,179,309$
3,931$ 67,766$ 1,988$ 979$ -$ 1,432$ -$ 72,678$
7,062 7,819 (16) - - 51,109 - -
- - - 400,077 - - - -
- - - - - 12,370 - -
- - - - - - - -
- - - - - - - -
10,993 75,585 1,972 401,056 - 64,911 - 72,678
- - - - - - - -
- - - - - - - -
1,250 845 - - - - - -
46,733 1,114,061 - - - - - -
- - - 49,360 343,219 - - -
- - 179,722 - - 355,327 - 1,106,631
- - - - - - - -
- - - - - - 498,066 -
- - - - - - - -
47,983 1,114,906 179,722 49,360 343,219 355,327 498,066 1,106,631
58,976$ 1,190,491$ 181,694$ 450,416$ 343,219$ 420,238$ 498,066$ 1,179,309$
Special Revenue Funds
121
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2018
Rosedale
Traffic
Highway 39 LACMTA Measure R AB939 Fee Mitigation
ASSETS
Pooled cash and investments 1,558,139$ 1,203$ -$ 380,571$ 516,209$
Receivables:
Accounts - - 1,096,017 13,261 -
Taxes - - - - -
Notes and loans - - - (75) -
Accrued interest 3,449 2 - - 1,141
Prepaid costs - - - 1,250 -
Restricted assets:
Cash and investments with fiscal agents - - 3,502,371 - -
Total assets 1,561,588$ 1,205$ 4,598,388$ 395,007$ 517,350$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ 1,672$ 7,781$ -$
Accrued liabilities - - 9,274 4,158 -
Unearned revenues - - - - -
Deposits payable - - - - -
Due to other funds - - 674,979 - -
Advances from other funds - - - - -
Total liabilities - - 685,925 11,939 -
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - - 1,043,445 - -
Total deferred inflow of resources - - 1,043,445 - -
FUND BALANCES
Nonspendable
Prepaid costs - - - 1,250 -
Restricted for
Community development projects 1,561,588 - - - -
Public safety - - - - -
Capital projects - 1,205 2,869,018 381,818 517,350
Debt service - - - - -
Committed for:
Employee benefits - - - - -
Unassigned - - - - -
Total fund balances 1,561,588 1,205 2,869,018 383,068 517,350
Total liabilities, deferred inflows
of resources, and fund balances 1,561,588$ 1,205$ 4,598,388$ 395,007$ 517,350$
Special Revenue Funds
122
Debt Service
Funds
Public Total Nonmajor
Capital Public Works Financing Governmental
RMR SB1 Measure M Park in-lieu Projects Endowment Authority Funds
186,393$ 521,251$ 90,999$ 749,459$ 178,139$ 4,921$ 14,864,847$
105,470 - - - - - 1,928,019
- - - - - - 6,153
- - - - - - 57,388
- - 207 - 396 - 16,987
- - - - - - 4,204
- - - - - 487,427 3,989,798
291,863$ 521,251$ 91,206$ 749,459$ 178,535$ 492,348$ 20,867,396$
-$ -$ 1$ -$ 1,540$ -$ 713,156$
- - 16 - 5,338 - 198,300
- - - - - - 1,183,747
- - - - - - 12,370
- - - - - - 794,983
- - - 750,000 - - 750,000
- - 17 750,000 6,878 - 3,652,556
- - - - - - 1,467,169
- - - - - - 1,467,169
- - - - - - 4,204
- - - - - - 7,935,163
- - - - 171,657 - 764,434
291,863 521,251 91,189 - - - 6,411,898
- - - - - 492,348 492,348
- - - - - - 498,066
- - - (541) - - (358,442)
291,863 521,251 91,189 (541) 171,657 492,348 15,747,671
291,863$ 521,251$ 91,206$ 749,459$ 178,535$ 492,348$ 20,867,396$
Capital Projects FundsSpecial Revenue Funds
123
City of Azusa
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2018
Community
Grant and State Development
Seizure Fund Gasoline Tax Proposition A Proposition C Block Grant
REVENUES:
Taxes 96,735$ -$ 923,057$ 767,248$ -$
Licenses and permits - - - - -
Intergovernmental 1,153,206 1,050,148 141,460 323,024 537,709
Charges for services 53,935 - 18,600 22,986 -
Use of money and property 17,478 - 27,594 26,778 -
Contributions - - - - -
Miscellaneous 50,000 (817) (157) 1,480 23
Total revenues 1,371,354 1,049,331 1,110,554 1,141,516 537,732
EXPENDITURES:
Current:
General government 147,765 - - - -
Public safety 302,044 - - - -
Community development 57,868 - - - 401,936
Parks and recreation - 59,000 - - -
Public works 1,702 1,008,756 710,993 557,118 -
Capital outlay 680,526 4,275 13,640 272,900 150,647
Debt service:
Principal repayment - - - - -
Interest and fiscal charges - - - - -
Total expenditures 1,189,905 1,072,031 724,633 830,018 552,583
REVENUE OVER
(UNDER) EXPENDITURES 181,449 (22,700) 385,921 311,498 (14,851)
OTHER FINANCING
SOURCES (USES):
Transfers in - 36,168 - - -
Transfers out - - - - -
Total other financing sources (uses)- 36,168 - - -
Net change in fund balances 181,449 13,468 385,921 311,498 (14,851)
FUND BALANCES:
Beginning of year 1,192,286 928 1,579,540 1,513,811 (11,589)
End of year 1,373,735$ 14,396$ 1,965,461$ 1,825,309$ (26,440)$
Special Revenue Funds
124
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee Utility
Citizen Program Improvement Enforcement Fire Safety Nursery Benefits Mitigation
-$ -$ -$ -$ -$ -$ -$ -$
- - - - - - - -
117,753 - 63,754 18,290 - - - -
- 972,969 3,744 - 48,665 645,043 - -
- 15,862 2,251 4,341 - 3,830 - -
94,781 - - - - - - -
66 53 - - - 1,183 - -
212,600 988,884 69,749 22,631 48,665 650,056 - -
- 255,855 - - - 40,000 91,597 -
- - - 18,290 4,849,280 - - -
- 583,046 - - - - - -
388,495 - - - - 195 - -
- - 11,572 - - 340,815 - 11,489
- - 22,914 - - - - 328,614
- - - - - - - -
- - - - - - - -
388,495 838,901 34,486 18,290 4,849,280 381,010 91,597 340,103
(175,895) 149,983 35,263 4,341 (4,800,615) 269,046 (91,597) (340,103)
190,008 - - - 4,905,540 - 1,077,504 507,851
- - - - - (332,604) - -
190,008 - - - 4,905,540 (332,604) 1,077,504 507,851
14,113 149,983 35,263 4,341 104,925 (63,558) 985,907 167,748
33,870 964,923 144,459 45,019 238,294 418,885 (487,841) 938,883
47,983$ 1,114,906$ 179,722$ 49,360$ 343,219$ 355,327$ 498,066$ 1,106,631$
Special Revenue Funds
125
City of Azusa
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2018
Rosedale
Traffic
Highway 39 LACMTA Measure R AB939 Fee Mitigation
REVENUES:
Taxes -$ -$ 573,465$ -$ -$
Licenses and permits - - - - -
Intergovernmental - 1,229 35,818 - -
Charges for services - - - - -
Use of money and property 24,103 3 38,283 203,667 7,982
Contributions - - - - -
Miscellaneous - - (91) 23 -
Total revenues 24,103 1,232 647,475 203,690 7,982
EXPENDITURES:
Current:
General government - - 47 - -
Public safety - - - - -
Community development - - - - -
Parks and recreation - - - - -
Public works - - 556,280 224,823 -
Capital outlay - - 1,111,013 - -
Debt service:
Principal repayment - - 105,000 - -
Interest and fiscal charges - - 125,013 - -
Total expenditures - - 1,897,353 224,823 -
REVENUE OVER
(UNDER) EXPENDITURES 24,103 1,232 (1,249,878) (21,133) 7,982
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses)- - - - -
Net change in fund balances 24,103 1,232 (1,249,878) (21,133) 7,982
FUND BALANCES:
Beginning of year 1,537,485 (27) 4,118,896 404,201 509,368
End of year 1,561,588$ 1,205$ 2,869,018$ 383,068$ 517,350$
Special Revenue Funds
126
Debt Service
Funds
Public Total Nonmajor
Capital Public Works Financing Governmental
RMR SB1 Measure M Park in-lieu Projects Endowment Authority Funds
-$ 519,690$ -$ -$ -$ -$ 2,880,195$
- - 51,750 - - - 51,750
291,583 - - - - - 3,733,974
- - - - - - 1,765,942
280 1,561 1,306 - 2,789 5,258 383,366
- - - - - - 94,781
- - - - - - 51,763
291,863 521,251 53,056 - 2,789 5,258 8,961,771
- - - - - - 535,264
- - - - - - 5,169,614
- - - - - - 1,042,850
- - 25 - - - 447,715
- - - - 3,291 - 3,426,839
- - 15,755 - 3,919 - 2,604,203
- - - - - 285,000 390,000
- - - - - 74,191 199,204
- - 15,780 - 7,210 359,191 13,815,689
291,863 521,251 37,276 - (4,421) (353,933) (4,853,918)
- - - - - 355,212 7,072,283
- - - - - - (332,604)
- - - - - 355,212 6,739,679
291,863 521,251 37,276 - (4,421) 1,279 1,885,761
- - 53,913 (541) 176,078 491,069 13,861,910
291,863$ 521,251$ 91,189$ (541)$ 171,657$ 492,348$ 15,747,671$
Capital Projects FundsSpecial Revenue Funds
127
City of Azusa
Required Supplementary Information
Grants and Seizuire Fund Budgetary Schedule
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,192,286$ 1,192,286$ 1,192,286$ -$
Resources (Inflows):
Taxes 40,000 40,000 96,735 56,735
Intergovernmental 1,369,395 3,045,987 1,153,206 (1,892,781)
Charges for services 7,000 7,000 53,935 46,935
Use of money and property 100 100 17,478 17,378
Contributions 2,000 7,500 - (7,500)
Miscellaneous - - 50,000 50,000
Transfers in 40,000 (40,000) 80,000 120,000
Amounts available for appropriations 2,650,781 4,252,873 2,643,640 (1,609,233)
Charges to Appropriations (Outflows):
General government - 176,883 147,765 29,118
Public Safety 254,122 434,210 302,044 132,166
Community development 26,696 29,696 57,868 (28,172)
Public works - 1,800 1,702 98
Capital outlay 113,380 5,261,708 680,526 4,581,182
Transfers out - 80,000 80,000 -
Total charges to appropriations 394,198 5,984,297 1,269,905 4,714,392
Budgetary fund balance, June 30 2,256,583$ (1,731,424)$ 1,373,735$ 3,105,159$
Budget Amounts
128
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
State Gasoline Tax
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 928$ 928$ 928$ -$
Resources (Inflows):
Intergovernmental 1,383,807 1,383,807 1,050,148 (333,659)
Miscellaneous - - (817) (817)
Transfers in 36,166 36,166 36,168 2
Amounts available for appropriations 1,420,901 1,420,901 1,086,427 (334,474)
Charges to Appropriations (Outflows):
Parks and recreation 59,000 59,000 59,000 -
Public works 1,428,939 1,460,774 1,008,756 452,018
Capital outlay 8,156 8,156 4,275 3,881
Total charges to appropriations 1,496,095 1,527,930 1,072,031 455,899
Budgetary fund balance, June 30 (75,194)$ (107,029)$ 14,396$ 121,425$
Budget Amounts
129
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,579,540$ 1,579,540$ 1,579,540$ -$
Resources (Inflows):
Taxes 918,059 955,720 923,057 (32,663)
Intergovernmental 160,778 160,778 141,460 (19,318)
Charges for services 20,063 20,063 18,600 (1,463)
Use of money and property - 20,000 27,594 7,594
Miscellaneous - - (157) (157)
Amounts available for appropriations 2,678,440 2,736,101 2,690,094 (46,007)
Charges to Appropriations (Outflows):
Public works 848,505 938,215 710,993 227,222
Capital outlay - 26,755 13,640 13,115
Total charges to appropriations 848,505 964,970 724,633 240,337
Budgetary fund balance, June 30 1,829,935$ 1,771,131$ 1,965,461$ 194,330$
Budget Amounts
130
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition C
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,513,811$ 1,513,811$ 1,513,811$ -$
Resources (Inflows):
Taxes 761,506 938,788 767,248 (171,540)
Intergovernmental 74,214 3,654,117 323,024 (3,331,093)
Charges for services 44,830 44,830 22,986 (21,844)
Use of money and property - - 26,778 26,778
Miscellaneous - - 1,480 1,480
Amounts available for appropriations 2,394,361 6,151,546 2,655,327 (3,496,219)
Charges to Appropriations (Outflows):
Public works 586,165 839,161 557,118 282,043
Capital outlay - 91,865 272,900 (181,035)
Total charges to appropriations 586,165 931,026 830,018 101,008
Budgetary fund balance, June 30 1,808,196$ 5,220,520$ 1,825,309$ (3,395,211)$
Budget Amounts
131
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, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated (11,589)$ (11,589)$ (11,589)$ -$
Resources (Inflows):
Intergovernmental 527,639 1,656,388 537,709 (1,118,679)
Contributions 5,200 5,200 - (5,200)
Miscellaneous - - 23 23
Amounts available for appropriations 521,250 1,649,999 526,143 (1,123,856)
Charges to Appropriations (Outflows):
Community development 378,495 770,941 401,936 369,005
Capital outlay - 738,274 150,647 587,627
Total charges to appropriations 378,495 1,509,215 552,583 956,632
Budgetary fund balance, June 30 142,755$ 140,784$ (26,440)$ (167,224)$
Budget Amounts
132
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Senior Nutrition
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 33,870$ 33,870$ 33,870$ -$
Resources (Inflows):
Intergovernmental 125,344 125,344 117,753 (7,591)
Contributions 69,417 69,367 94,781 25,414
Miscellaneous - - 66 66
Transfers in 161,800 190,006 190,008 2
Amounts available for appropriations 390,431 418,587 436,478 17,891
Charges to Appropriations (Outflows):
Parks and recreation 356,561 370,801 388,495 (17,694)
Total charges to appropriations 356,561 370,801 388,495 (17,694)
Budgetary fund balance, June 30 33,870$ 47,786$ 47,983$ 197$
Budget Amounts
133
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Benefit Program
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 964,923$ 964,923$ 964,923$ -$
Resources (Inflows):
Charges for services 1,125,576 1,125,576 972,969 (152,607)
Use of money and property 1,000 1,000 15,862 14,862
Miscellaneous - - 53 53
Amounts available for appropriations 2,091,499 2,091,499 1,953,807 (137,692)
Charges to Appropriations (Outflows):
General government 283,595 278,913 255,855 23,058
Community development 829,000 834,000 583,046 250,954
Public works 50,000 50,000 - 50,000
Total charges to appropriations 1,162,595 1,162,913 838,901 324,012
Budgetary fund balance, June 30 928,904$ 928,586$ 1,114,906$ 186,320$
Budget Amounts
134
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Air Quality Improvement
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 144,459$ 144,459$ 144,459$ -$
Resources (Inflows):
Intergovernmental 63,780 63,780 63,754 (26)
Charges for services 11,647 11,647 3,744 (7,903)
Use of money and property - - 2,251 2,251
Amounts available for appropriations 219,886 219,886 214,208 (5,678)
Charges to Appropriations (Outflows):
Public works 26,850 26,850 11,572 15,278
Capital outlay 148,558 148,558 22,914 125,644
Debt service:
Principal retirement 21,158 21,158 - 21,158
Total charges to appropriations 196,566 196,566 34,486 162,080
Budgetary fund balance, June 30 23,320$ 23,320$ 179,722$ 156,402$
Budget Amounts
135
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Supplemental Law Enforcement
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 45,019$ 45,019$ 45,019$ -$
Resources (Inflows):
Intergovernmental 115,000 115,000 18,290 (96,710)
Use of money and property - - 4,341 4,341
Amounts available for appropriations 160,019 160,019 67,650 (92,369)
Charges to Appropriations (Outflows):
Public Safety - 37,300 18,290 19,010
Total charges to appropriations - 37,300 18,290 19,010
Budgetary fund balance, June 30 160,019$ 122,719$ 49,360$ (73,359)$
Budget Amounts
136
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Safety
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 238,294$ 238,294$ 238,294$ -$
Resources (Inflows):
Charges for services 80,000 80,000 48,665 (31,335)
Transfers in 4,905,541 4,905,541 4,905,540 (1)
Amounts available for appropriations 5,223,835 5,223,835 5,192,499 (31,336)
Charges to Appropriations (Outflows):
Public Safety 4,905,541 4,905,541 4,849,280 56,261
Total charges to appropriations 4,905,541 4,905,541 4,849,280 56,261
Budgetary fund balance, June 30 318,294$ 318,294$ 343,219$ 24,925$
Budget Amounts
137
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Monrovia Nursery
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 418,885$ 418,885$ 418,885$ -$
Resources (Inflows):
Charges for services 606,000 606,000 645,043 39,043
Use of money and property 3,700 3,700 3,830 130
Miscellaneous - - 1,183 1,183
Amounts available for appropriations 1,028,585 1,028,585 1,068,941 40,356
Charges to Appropriations (Outflows):
General government 96,383 96,383 40,000 56,383
Parks and recreation - - 195 (195)
Public works 320,966 321,291 344,027 (22,736)
Transfers out 332,600 332,600 332,604 (4)
Total charges to appropriations 749,949 750,274 716,826 33,448
Budgetary fund balance, June 30 278,636$ 278,311$ 352,115$ 73,804$
Budget Amounts
138
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Employee Benefits
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (487,841)$ (487,841)$ (487,841)$ -$
Resources (Inflows):
Transfers in 1,077,500 1,077,500 1,077,504 4
Amounts available for appropriations 589,659 589,659 589,663 4
Charges to Appropriations (Outflows):
General government 1,077,500 2,327,500 91,597 2,235,903
Total charges to appropriations 1,077,500 2,327,500 91,597 2,235,903
Budgetary fund balance, June 30 (487,841)$ (1,737,841)$ 498,066$ 2,235,907$
Budget Amounts
139
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Utility Mitigation
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 938,883$ 938,883$ 938,883$ -$
Resources (Inflows):
Intergovernmental - 9,173 - (9,173)
Transfers in 284,960 284,960 507,851 222,891
Amounts available for appropriations 1,223,843 1,233,016 1,446,734 213,718
Charges to Appropriations (Outflows):
Public works 50,000 59,173 11,489 47,684
Capital outlay - 348,302 328,614 19,688
Total charges to appropriations 50,000 407,475 340,103 67,372
Budgetary fund balance, June 30 1,173,843$ 825,541$ 1,106,631$ 281,090$
Budget Amounts
140
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Highway 39
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,537,485$ 1,537,485$ 1,537,485$ -$
Resources (Inflows):
Use of money and property - - 24,103 24,103
Amounts available for appropriations 1,537,485 1,537,485 1,561,588 24,103
Charges to Appropriations (Outflows):
Public works - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 1,537,485$ 1,537,485$ 1,561,588$ 24,103$
Budget Amounts
141
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
LACMTA
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (27)$ (27)$ (27)$ -$
Resources (Inflows):
Intergovernmental 245,000 935,000 1,229 (933,771)
Use of money and property - - 3 3
Amounts available for appropriations 244,973 934,973 1,205 (933,768)
Charges to Appropriations (Outflows):
Capital outlay - 935,000 - 935,000
Total charges to appropriations - 935,000 - 935,000
Budgetary fund balance, June 30 244,973$ (27)$ 1,205$ 1,232$
Budget Amounts
142
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure R
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,118,896$ 4,118,896$ 4,118,896$ -$
Resources (Inflows):
Taxes 583,074 583,074 573,465 (9,609)
Intergovernmental - 203,725 35,818 (167,907)
Use of money and property - - 38,283 38,283
Miscellaneous - - (91) (91)
Amounts available for appropriations 4,701,970 4,905,695 4,766,371 (139,324)
Charges to Appropriations (Outflows):
General government - - 47 (47)
Public works 223,580 226,385 556,280 (329,895)
Capital outlay 100,000 2,654,095 1,111,013 1,543,082
Debt service:
Principal retirement 105,000 105,000 105,000 -
Interest and fiscal charges 124,495 124,495 125,013 (518)
Total charges to appropriations 553,075 3,109,975 1,897,353 1,212,622
Budgetary fund balance, June 30 4,148,895$ 1,795,720$ 2,869,018$ 1,073,298$
Budget Amounts
143
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
AB939 Fee
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 404,201$ 404,201$ 404,201$ -$
Resources (Inflows):
Use of money and property 218,609 218,609 203,667 (14,942)
Miscellaneous - - 23 23
Amounts available for appropriations 622,810 622,810 607,891 (14,919)
Charges to Appropriations (Outflows):
Public works 237,875 238,191 228,331 9,860
Total charges to appropriations 237,875 238,191 228,331 9,860
Budgetary fund balance, June 30 384,935$ 384,619$ 379,560$ (5,059)$
Budget Amounts
144
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Rosedale Traffic Mitigation
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 509,368$ 509,368$ 509,368$ -$
Resources (Inflows):
Use of money and property - - 7,982 7,982
Amounts available for appropriations 509,368 509,368 517,350 7,982
Charges to Appropriations (Outflows):
Public works - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 509,368$ 509,368$ 517,350$ 7,982$
Budget Amounts
145
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
RMR SB1
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental - - 291,583 291,583
Use of money and property - - 280 280
Amounts available for appropriations - - 291,863 291,863
Charges to Appropriations (Outflows):
Public works - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 -$ -$ 291,863$ 291,863$
Budget Amounts
146
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure M
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Taxes 583,074 583,074 519,690 (63,384)
Use of money and property - - 1,561 1,561
Amounts available for appropriations 583,074 583,074 521,251 (61,823)
Charges to Appropriations (Outflows):
Public works 34,750 34,750 - 34,750
Capital outlay 450,000 450,000 - 450,000
Total charges to appropriations 484,750 484,750 - 484,750
Budgetary fund balance, June 30 98,324$ 98,324$ 521,251$ 422,927$
Budget Amounts
147
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Park In-lieu
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 53,913$ 53,913$ 53,913$ -$
Resources (Inflows):
Licenses and permits 3,000 3,000 51,750 48,750
Use of money and property - - 1,306 1,306
Amounts available for appropriations 56,913 56,913 106,969 50,056
Charges to Appropriations (Outflows):
Parks and recreation - - 25 (25)
Capital outlay - 16,401 15,755 646
Total charges to appropriations - 16,401 15,780 621
Budgetary fund balance, June 30 56,913$ 40,512$ 91,189$ 50,677$
Budget Amounts
148
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects
For the year ended June 30, 2018
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 - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 (541)$ (541)$ (541)$ -$
Budget Amounts
149
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Works Endowment
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 176,078$ 176,078$ 176,078$ -$
Resources (Inflows):
Use of money and property - - 209 209
Amounts available for appropriations 176,078 176,078 176,287 209
Charges to Appropriations (Outflows):
Public works 88,450 90,740 3,291 87,449
Capital outlay - 77,640 3,919 73,721
Total charges to appropriations 88,450 168,380 7,210 161,170
Budgetary fund balance, June 30 87,628$ 7,698$ 169,077$ 161,379$
Budget Amounts
150
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Financing Authority
For the year ended June 30, 2018
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 491,069$ 491,069$ 491,069$ -$
Resources (Inflows):
Use of money and property - - 5,258 5,258
Transfers in 355,215 355,215 357,399 2,184
Amounts available for appropriations 846,284 846,284 853,726 7,442
Charges to Appropriations (Outflows):
Debt service:
Principal retirement 285,000 285,000 285,000 -
Interest and fiscal charges 70,215 70,215 74,191 (3,976)
Transfers out - - 2,187 (2,187)
Total charges to appropriations 355,215 355,215 361,378 (6,163)
Budgetary fund balance, June 30 491,069$ 491,069$ 492,348$ 1,279$
Budget Amounts
151
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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, 2018
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
ASSETS
Current:
Cash and investments 4,352,222$ 248,654$ 4,600,876$
Receivables:
Accounts 351,799 533,953 885,752
Notes and loans - - -
Accrued interest 9,465 - 9,465
Prepaid costs 362 - 362
Restricted cash with fiscal agent 1,476,249 - 1,476,249
Total current assets 6,190,097 782,607 6,972,704
Noncurrent:
Capital assets - net of accumulated depreciation 9,436,931 - 9,436,931
Total noncurrent assets 9,436,931 - 9,436,931
Total assets 15,627,028 782,607 16,409,635
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 442,723 - 442,723
Total deferred outflows of resources 442,723 - 442,723
LIABILITIES
Current:
Accounts payable 78,172$ 611,329$ 689,501
Accrued liabilities 32,678 - 32,678
Accrued interest 51,819 - 51,819
Compensated absences - due within one year 66,229 - 66,229
Bonds and notes payable - due within one year 400,000 - 400,000
Total current liabilities 628,898 611,329 1,240,227
Noncurrent:
Bonds and note payable - due in more than one year 3,205,000 - 3,205,000
Net pension liability 1,662,498 - 1,662,498
Total noncurent liabilities 4,867,498 - 4,867,498
Total liabilities 5,496,396 611,329 6,107,725
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 32,090 - 32,090
Total deferred inflows of resources 32,090 - 32,090
NET POSITION
Net investment in capital assets 5,831,931 - 5,831,931
Restricted for debt service 1,476,249 - 1,476,249
Unrestricted 3,233,085 171,278 3,404,363
Total net position 10,541,265$ 171,278$ 10,712,543$
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, 2018
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
OPERATING REVENUES:
Sales and service charges 2,978,992$ 3,885,635$ 6,864,627
Miscellaneous 524 - 524
Total operating revenues 2,979,516 3,885,635 6,865,151
OPERATING EXPENSES:
Administration and general 1,269,564 - 1,269,564
Treatment 677,186 - 677,186
Refuse collection - 3,741,695 3,741,695
Depreciation expense 496,328 - 496,328
Total operating expenses 2,443,078 3,741,695 6,184,773
OPERATING INCOME (LOSS)536,438 143,940 680,378
NONOPERATING REVENUES (EXPENSES):
Taxes - 704,965 704,965
Interest revenue 77,196 - 77,196
Interest expense (127,012) - (127,012)
Special franchise fees (60,369) - (60,369)
Total nonoperating revenues (expenses)(110,185) 704,965 594,780
INCOME (LOSS) BEFORE TRANSFERS 426,253 848,905 1,275,158
Transfer out (119,004) (823,512) (942,516)
Change in net position 307,249 25,393 332,642
Net position:
Beginning of year, as restated 10,234,016 145,885 10,379,901
End of year 10,541,265$ 171,278$ 10,712,543$
Business-Type Activities - Enterprise Funds
155
City of Azusa
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the year ended June 30, 2018
Total
Sewer/ Refuse Non-major
Wastewater Contract Proprietary
Fund Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 2,981,788$ 3,848,153$ 6,829,941$
Cash paid to suppliers for goods and services (1,087,856) (3,714,445) (4,802,301)
Cash paid to employees for services (750,596) - (750,596)
Net cash provided by (used in) operating activities 1,143,336 133,708 1,277,044
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers out (119,004) (823,512) (942,516)
Net cash provided by noncapital financing activities (119,004) (823,512) (942,516)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Principal paid on capital debt (385,000) - (385,000)
Interest paid on capital debt (132,213) - (132,213)
Special franchise fees paid (60,369) - (60,369)
Taxes - 704,965 704,965
Net cash provided by (used in) capital and related financing
activities (573,583) 704,965 131,382
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 77,871 - 77,871
Net cash provided by (used in) investing activities 77,871 - 77,871
Net increase (decrease) in cash and cash equivalents 528,620 15,161 543,781
CASH AND CASH EQUIVALENTS:
Beginning of year 5,299,851 233,493 5,533,344
End of year 5,828,471$ 248,654$ 6,077,125$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 4,352,222$ 248,654$ 4,600,876$
Cash with fiscal agent 1,476,249 - 1,476,249
Total 5,828,471$ 248,654$ 6,077,125$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)536,438$ 143,940$ 680,378$
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 2,272 (37,482) (35,210)
(Increase) decrease in prepaid expense (184) - (184)
(Increase) decrease in deferred pension related outflows (101,649) - (101,649)
Increase (decrease) in accounts payable (25,161) 27,250 2,089
Increase (decrease) in accrued liabilities 29,083 - 29,083
Increase (decrease) in compensated absences 5,847 - 5,847
Increase (decrease) in net pension liability 255,453 - 255,453
Increase (decrease) in deferred pension related inflows (55,091) - (55,091)
Total adjustments 606,898 (10,232) 596,666
Net cash provided by (used in) by operating activities 1,143,336$ 133,708$ 1,277,044$
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, 2018
Consumer Central
Services Self-Insurance Services
ASSETS
Current:
Cash and investments 1,325,732$ 998,498$ 3,309$
Receivables:
Accounts 261,167 698 96
Notes and loans 1,793 - -
Accrued interest 102,946 2,381 -
Prepaid costs 2,457 62,229 -
Total current assets 1,694,095 1,063,806 3,405
Noncurrent:
Capital assets - net of accumulated depreciation 423,778 - 26,695
Total noncurrent assets 423,778 - 26,695
Total assets 2,117,873 1,063,806 30,100
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 1,369,464 37,600 -
Total deferred outflows of resources 1,369,464 37,600 -
LIABILITIES
Current:
Accounts payable 145,057 297,144 560
Accrued liabilities 113,404 8,498 -
Accrued compensated absences - due within one year 295,310 2,740 -
Accrued claims and judgements - due within one year - 1,000,000 -
Total current liabilities 553,771 1,308,382 560
Noncurrent:
Accrued compensated absences - due in more than one year - - -
Accrued claims and judgements - due in more than one year - 1,787,382 -
Total OPEB liability 823,501 - -
Net pension liability 5,421,625 139,421 -
Total noncurent liabilities 6,245,126 1,926,803 -
Total liabilities 6,798,897 3,235,185 560
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 121,821 2,582 -
Total deferred inflows of resources 121,821 2,582 -
NET POSITION
Net investment in capital assets 423,778 - 26,695
Unrestricted (3,857,159) (2,136,361) 2,845
Total net position (3,433,381)$ (2,136,361)$ 29,540$
158
Equipment
Replacement IT Services Totals
21,995$ 106,713$ 2,456,247$
- 167 262,128
- - 1,793
47 - 105,374
- 162,631 227,317
22,042 269,511 3,052,859
204,914 - 655,387
204,914 - 655,387
226,956 269,511 3,708,246
- 693,050 2,100,114
- 693,050 2,100,114
- 55,955 498,716
- 42,558 164,460
- 102,602 400,652
- - 1,000,000
- 201,115 2,063,828
- 91,461 91,461
- - 1,787,382
- - 823,501
- 2,664,974 8,226,020
- 2,756,435 10,928,364
- 2,957,550 12,992,192
- 55,283 179,686
- 55,283 179,686
204,914 - 655,387
22,042 (2,050,272) (8,018,905)
226,956$ (2,050,272)$ (7,363,518)$
159
City of Azusa
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds
For the year ended June 30, 2018
Consumer Central
Services Self-Insurance Services
OPERATING REVENUES:
Sales and service charges 6,440,621$ 4,568,919$ -$
Interdepartmental charges - - -
Miscellaneous 7,550 85,110 -
Lease revenue - - -
Total operating revenues 6,448,171 4,654,029 -
OPERATING EXPENSES:
Administration and general 5,221,014 3,771,219 -
Source of supply 28,815 - -
Pumping - - -
Transmission/collection - - -
Treatment - - -
Refuse collection - - -
Cost of sales and services - - -
Claims expense 1,103,782 1,092,229 -
Depreciation expense 33,744 - 1,492
Total operating expenses 6,387,355 4,863,448 1,492
OPERATING INCOME (LOSS)60,816 (209,419) (1,492)
NONOPERATING REVENUES (EXPENSES):
Interest revenue - 4,937 -
Loss on disposal of capital assets - - -
Total nonoperating revenues (expenses)- 4,937 -
INCOME (LOSS) BEFORE TRANSFERS 60,816 (204,482) (1,492)
Transfer in 132,504 - -
Transfer out (523,176) - -
Change in net position (329,856) (204,482) (1,492)
Net position:
Beginning of year, as restated (3,103,525) (1,931,879) 31,032
End of year (3,433,381)$ (2,136,361)$ 29,540$
160
Equipment
Replacement IT Services Totals
-$ 1,622,959$ 12,632,499$
- - -
- (6,055) 86,605
- - -
- 1,616,904 12,719,104
- 1,769,482 10,761,715
- - 28,815
- - -
- - -
- - -
- - -
- - -
- - 2,196,011
60,945 - 96,181
60,945 1,769,482 13,082,722
(60,945) (152,578) (363,618)
317 - 5,254
(8,927) - (8,927)
(8,610) - (3,673)
(69,555) (152,578) (367,291)
- - 132,504
- - (523,176)
(69,555) (152,578) (757,963)
296,511 (1,897,694) (6,605,555)
226,956$ (2,050,272)$ (7,363,518)$
161
City of Azusa
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2018
Consumer Central
Services Self-Insurance Services
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 6,432,770$ 4,778,868$ -$
Cash paid to suppliers for goods and services (3,138,184) (5,285,532) -
Cash paid to employees for services (2,885,034) (82,518) -
Net cash provided by (used in) operating activities 409,552 (589,182) -
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers out (523,176) - -
Cash transfers in 132,504 - -
Net cash provided by noncapital financing activities (390,672) - -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Acquisition and construction of capital assets (28,815) - -
Proceeds from sale of capital assets - - -
Net cash provided by (used in) capital and related financing activities (28,815) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 2,237 6,640 -
Net cash provided by (used in) investing activities 2,237 6,640 -
Net increase (decrease) in cash and cash equivalents (7,698) (582,542) -
CASH AND CASH EQUIVALENTS:
Beginning of year 1,333,430 1,581,040 3,309
End of year 1,325,732$ 998,498$ 3,309$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)60,816$ (209,419)$ (1,492)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 33,744 - 1,492
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable (15,401) 124,839 -
(Increase) decrease in prepaid expense (2,254) 2,785 -
(Increase) decrease in deferred pension related outflows (379,215) (8,220) -
Increase (decrease) in accounts payable (129,661) (86,893) -
Increase (decrease) in accrued liabilities 107,822 9,981 -
Increase (decrease) in claims and judgements - (445,240) -
Increase (decrease) in compensated absences 25,708 1,565 -
Increase (decrease) in total OPEB liability 43,429 - -
Increase (decrease) in net pension liability 817,943 21,519 -
Increase (decrease) in deferred pension related inflows (153,379) (99) -
Total adjustments 348,736 (379,763) 1,492
Net cash provided by (used in) by operating activities 409,552$ (589,182)$ -$
162
Equipment
Replacement IT Services Totals
-$ 1,617,286$ 12,828,924$
- (941,221) (9,364,937)
- (801,709) (3,769,261)
- (125,644) (305,274)
- - (523,176)
- - 132,504
- - (390,672)
2,696 - (26,119)
- - -
2,696 - (26,119)
319 - 9,196
319 - 9,196
3,015 (125,644) (712,869)
18,980 232,357 3,169,116
21,995$ 106,713$ 2,456,247$
(60,945)$ (152,578)$ (363,618)$
60,945 - 96,181
- 382 109,820
- (79,757) (79,226)
- (173,623) (561,058)
- (101,717) (318,271)
- 44,863 162,666
- - (445,240)
- 13,110 40,383
- - 43,429
- 406,105 1,245,567
- (82,429) (235,907)
60,945 26,934 58,344
-$ (125,644)$ (305,274)$
163
City of Azusa
Agency Fund
Statement of Changes in Fiduciary Assets and Liabilities
Balance Balance
July 1, 2017 Additions Deductions June 30, 2018
Agency Fund
Assets:
Cash and investments 8,922,391$ 2,069,295$ -$ 10,991,686$
Accounts receivable 27,405 52,504 (27,405) 52,504
Taxes receivable 105,649 - (41,151) 64,498
Restricted cash and investments with fiscal agent 4,170,102 - (97,516) 4,072,586
Total assets 13,225,547$ 2,121,799$ (166,072)$ 15,181,274$
Liabilities:
Accounts payable 215,008$ 481,252$ (215,008)$ 481,252$
Accrued liabilities 6,073 - (2,176) 3,897
Deposits payable 13,003,125 1,691,350 - 14,694,475
Due to other government 1,341 309 - 1,650
Total liabilities 13,225,547$ 2,172,911$ (217,184)$ 15,181,274$
For the year ended June 30, 2018
164
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Water - Enterprise Fund
For the year ended June 30, 2018
Water
OPERATING REVENUES:
Residential sales 10,664,144$
Commercial sales 4,307,632
Industrial sales 2,752,305
Other sales 1,904,434
Fees 146,674
Other revenue 2,253,251
Total operating revenues 22,028,440
OPERATING EXPENSES:
Production 8,048,608
Transmission and distribution 2,501,290
Customer accounting and sales 3,731,921
Uncollectible accounts 28,880
Administration and general 2,156,255
Depreciation expense 3,736,715
Total operating expenses 20,203,669
OPERATING INCOME (LOSS)1,824,771
NONOPERATING REVENUES (EXPENSES):
Interest revenue 535,060
Interest expense (1,946,230)
Special franchise fees (403,744)
Gain on disposal of capital assets 3,430
Total nonoperating revenues (expenses)(1,811,484)
INCOME (LOSS) BEFORE TRANSFERS 13,287
Transfer out (249,960)
Change in net position (236,673)
Net position:
Beginning of year, as restated 53,049,265
End of year 52,812,592$
165
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Light - Enterprise Fund
For the year ended June 30, 2018
Light
OPERATING REVENUES:
Sale/electricity - residential 10,596,040$
Sale/electricity - commercial and industrial 19,710,492
Sale/electricity - other 1,359,101
Sale/electricity - resale 2,745,550
Other revenue 2,208,837
Total operating revenues 36,620,020
OPERATING EXPENSES:
Purchase power 17,041,378
Transmission/dispatching 3,703,591
Operation and maintenance 2,813,179
Uncollectible accounts 37,669
Administration and general 4,958,066
Depreciation expense 1,353,323
Total operating expenses 29,907,206
OPERATING INCOME (LOSS)6,712,814
NONOPERATING REVENUES (EXPENSES):
Interest revenue 433,639
Interest expense (171,491)
Special franchise fees (3,239,523)
Gain on disposal of capital assets 12,521
Total nonoperating revenues (expenses)(2,964,854)
INCOME (LOSS) BEFORE TRANSFERS 3,747,960
Transfer out (448,462)
Change in net position 3,299,498
Net position:
Beginning of year, as restated 46,342,032
End of year 49,641,530$
166
Pages
Financial Trends
168-172
Revenue Capacity
173-182
Debt Capacity
183-189
Demographic and Economic Information
190-191
Operating Information
192-194
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.
CITY OF AZUSA
Statistical Section
This part of the City of Azusa's comprehensive annual financial report presents detailed information as a context to aid the reader in
understanding the information presented in the financial statements, 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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities:
Investment in capital assets,19,090,231$ 19,372,237$ 19,297,862$ 28,862,696$ 29,086,566$ 29,959,431$ 28,121,302$ 33,586,894$ 33,818,379$ 35,435,990$
net of related debt
Restricted 60,470,894 55,734,821 35,312,033 5,306,039 8,800,537 9,222,166 10,658,744 12,664,389 11,262,725 11,653,156
Unrestricted (58,874,825) (67,047,309) (50,982,746) 23,447,281 18,107,479 (7,774,851) (46,416,171) (47,761,262) (65,540,615) (71,783,787)
Total governmental activities net position 20,686,300$ 8,059,749$ 3,627,149$ 57,616,016$ 55,994,582$ 31,406,746$ (7,636,125)$ (1,509,979)$ (20,459,511)$ (24,694,641)$
Business-type activities:
Investment in capital assets,57,578,956$ 58,696,499$ 35,160,311$ 60,564,169$ 55,086,846$ 58,465,869$ 45,617,124$ 56,985,265$ 50,924,797$ 52,197,779$
net of related debt
Restricted 5,049,234 5,069,361 3,192,561 10,845,193 11,554,302 9,845,901 15,085,506 11,448,778 16,722,108 16,307,140
Unrestricted 64,014,418 61,221,682 85,047,584 53,464,644 55,694,676 46,533,746 42,093,086 36,790,964 38,640,042 41,228,368
Total business-type activities net position 126,642,608$ 124,987,542$ 123,400,456$ 124,874,006$ 122,335,824$ 114,845,516$ 102,795,716$ 105,225,007$ 106,286,947$ 109,733,287$
Primary government:
Investment in capital assets,76,669,187$ 78,068,736$ 54,458,173$ 89,426,865$ 84,173,412$ 88,425,300$ 73,738,426$ 90,572,159$ 84,743,176$ 87,633,769$
net of related debt
Restricted 65,520,128 60,804,182 38,504,594 16,151,232 20,354,839 19,068,067 25,744,250 24,113,167 27,984,833 27,960,296
Unrestricted 5,139,593 (5,825,627) 34,064,838 76,911,925 73,802,155 38,758,895 (4,323,085) (10,970,298) (26,900,573) (30,555,419)
Total primary government net position 147,328,908$ 133,047,291$ 127,027,605$ 182,490,022$ 178,330,406$ 146,252,262$ 95,159,591$ 103,715,028$ 85,827,436$ 85,038,646$
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 1 - Net Position by Component
Last Ten Fiscal Years (accrual basis of acc
Fiscal Year
168
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Program Revenue:
Governmental activities:
Charges for services
General government 3,418,393$ 3,760,159$ 3,855,810$ 3,090,304$ 2,304,290$ 3,919,876$ 3,517,810$ 4,157,243$ 4,822,316$ 5,065,921$
Public Safety 681,943 871,900 713,846 721,032 705,140 829,054 741,551 821,281 774,218 649,929
Community development 1,358,872 1,659,057 1,915,741 2,615,631 2,831,860 3,296,987 3,044,683 2,463,012 3,094,335 3,162,591
Parks and recreation 1,127,077 1,179,080 997,277 1,046,584 1,090,771 1,181,561 1,226,392 1,188,778 487,842 478,140
Public Works 203,280 368,275 364,910 838,958 476,506 525,343 961,875 739,521 833,440 875,283
Operating grants and contributions 5,307,696 3,261,472 3,651,491 3,267,287 2,121,638 3,836,479 13,926,073 6,435,839 4,014,559 6,999,678
Capital grants and contributions 286,875 654,467 109,226 137,102 2,988,760 442,727 398,905 328,662 935,622 1,384,675
Total governmental activities
program revenues 12,384,136 11,754,410 11,608,301 11,716,898 12,518,965 14,032,027 23,817,289 16,134,336 14,962,332 18,616,217
Business-type activities:
Charges for services
Water 14,805,241 16,144,130 17,779,417 20,062,118 21,604,435 21,762,242 21,515,397 20,317,053 20,785,465 22,028,440
Light 34,496,805 35,192,941 39,189,980 40,962,648 42,377,694 45,001,748 46,222,264 40,464,630 41,404,427 36,620,020
Sewer/Wastewater 1,508,325 1,557,758 1,615,840 2,223,876 2,480,008 2,566,676 2,636,707 2,679,660 2,750,999 2,979,516
Refuse contract 2,968,742 2,933,390 3,062,700 2,976,946 2,954,842 3,058,956 3,145,396 3,465,932 3,697,476 3,885,635
Operating grants and contributions - 84 667,619 704,965
Total business-type activities
program revenues 53,779,113 55,828,303 61,647,937 66,225,588 69,416,979 72,389,622 73,519,764 66,927,275 69,305,986 66,218,576
Total primary government
program revenues 66,163,249$ 67,582,713$ 73,256,238$ 77,942,486$ 81,935,944$ 86,421,649$ 97,337,053$ 83,061,611$ 84,268,318$ 84,834,793$
Expenses:
Governmental activities:
General government 15,047,013$ 16,368,337$ 12,198,991$ 10,537,722$ 7,168,707$ 7,169,710$ 7,834,391$ 10,945,471$ 11,183,394$ 12,216,266$
Public safety 20,459,265 19,458,795 20,187,914 20,449,077 20,077,868$ 21,082,420$ 21,279,644$ 22,689,580$ 24,610,769$ 28,290,550$
Community development 5,690,458 4,041,516 3,472,237 3,272,401 3,053,950$ 2,569,284$ 2,384,308$ 2,605,120$ 3,170,213$ 3,312,408$
Parks and recreation 4,083,565 3,950,786 4,184,626 4,146,245 3,453,469$ 3,752,518$ 3,878,961$ 4,546,965$ 4,365,600$ 4,745,891$
Public works 4,577,435 4,688,537 5,539,866 8,818,083 4,173,502$ 5,356,694$ 5,019,152$ 5,331,169$ 4,404,636$ 5,522,426$
Interest on long-term debt 6,224,638 7,274,723 7,380,598 2,244,315 471,835$ 1,330,555$ 699,155$ 517,395$ 361,493$ 278,689$
Total governmental activities
expenses 56,082,374 55,782,694 52,964,232 49,467,843 38,399,331 41,261,181 41,095,611 46,635,700 48,096,105 54,366,230
Business-type activities:
Water 17,225,088 19,114,843 19,680,719 19,364,355 19,199,120 18,345,227 21,497,271 19,429,769 20,511,527 22,538,051
Light 36,939,301 39,803,690 40,083,680 39,115,161 44,040,193 45,011,550 44,328,679 41,383,802 39,464,774 33,269,209
Sewer/Wastewater 1,995,785 1,986,142 1,982,241 2,083,756 4,828,680 2,434,295 2,368,124 2,131,684 2,220,602 2,624,377
Refuse contract 3,028,270 2,924,303 2,962,395 2,851,882 2,835,041 2,938,255 3,042,337 3,342,897 3,533,695 3,735,613
Total business-type activities
expenses 59,188,444 63,828,978 64,709,035 63,415,154 70,903,034 68,729,327 71,236,411 66,288,152 65,730,598 62,167,250
Total primary government
program expenses 115,270,818 119,611,672 117,673,267 112,882,997 109,302,365 109,990,508 112,332,022 112,923,852 113,826,703 116,533,480
Net revenues (expenses):
Governmental activities (41,491,520) (44,028,284) (41,355,931) (37,750,945) (25,880,366) (27,229,154) (17,278,322) (30,501,364) (33,133,773) (35,750,013)
Business-type activities (5,409,331) (8,000,675) (3,061,098) 2,810,434 (1,486,055) 3,660,295 2,283,353 639,123 3,575,388 4,051,326
Total net revenues (expenses) (46,900,851) (52,028,959) (44,417,029) (34,940,511) (27,366,421) (23,568,859) (14,994,969) (29,862,241) (29,558,385) (31,698,687)
CITY OF AZUSA
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
Fiscal Year
169
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes, general purpose 13,518,253$ 10,032,979$ 12,108,155$ 9,856,354$ 8,312,351$ 8,023,547$ 8,531,515$ 9,134,084$ 10,719,463$ 11,122,669$
Transient occupancy taxes 226,268 200,840 192,659 210,923 224,359 223,675 261,815 347,965 366,579 719,318
Sales tax 6,202,335 4,716,305 5,678,177 6,234,614 6,904,400 7,183,809 7,530,257 8,001,941 5,516,848 5,665,876
Franchise taxes 5,821,976 5,595,423 6,222,537 6,355,828 6,526,496 6,757,708 7,328,977 7,575,506 6,893,264 6,747,947
Business licenses taxes 1,755,831 1,829,503 1,822,102 1,865,195 1,983,634 1,922,139 2,008,916 1,995,000 2,238,439 2,208,309
Utility users tax 3,260,191 3,059,121 3,160,788 3,250,469 3,305,545 3,441,178 3,594,092 3,266,383 3,329,293 3,032,095
Other taxes 1,131,885 1,102,339 2,678,727 1,272,967 1,963,904 1,763,038 2,058,967 1,851,142 1,702,902 1,602,546
Motor vehicle in lieu-unrestricted 157,012 137,557 143,401 420,126 25,224 20,876 - - - -
Investment income 3,967,549 2,914,790 2,540,133 1,284,484 166,674 (423,898) 353,285 183,908 460,691 (202,455)
Other general revenues 707,536 441,956 854,945 (50,068) 279,447 759,132 629,507 1,709,757 1,504,953 111,705
- - - 59,933,832 - - (4,113,065) - - -
Transfers 2,249,387 1,386,380 1,326,374 1,082,262 1,309,808 1,535,996 1,458,028 1,652,338 1,739,277 2,031,610
Total governmental activities 38,998,223 31,417,193 36,727,998 91,716,986 31,001,842 31,207,200 29,642,294 35,718,024 34,471,709 33,039,620
Business-type activities:
Property taxes, general purpose 586,254 555,121 571,036 555,225 556,161 542,409 574,179 630,981 - -
Investment income 2,579,973 6,201,289 1,626,291 257,653 115,380 300,515 378,713 532,303 512,838 1,045,895
Gain on sale of assets 797 2,306 1,350 (1,966,003) (3,690) - - - -
Transfers (2,249,387) (1,386,380) (1,326,374) (1,082,262) (1,309,808) (1,535,996) (1,458,028) (1,652,338) (1,739,277) (2,031,610)
Miscellaneous 1,230,835 1,336,168 358,891 884,535 359,573 399,293 224,680 2,347,066 - -
Total business-type activities 2,148,472 6,708,504 1,231,194 (1,350,852) (282,384) (293,779) (280,456) 1,858,012 (1,226,439) (985,715)
Total general revenues 41,146,695 38,125,697 37,959,192 90,366,134 30,719,458 30,913,421 29,361,838 37,576,036 33,245,270 32,053,905
Changes in net position:
Governmental activities (2,493,297) (12,611,091) (4,627,933) 53,966,041 5,121,476 3,978,046 12,363,972 5,216,660 (1,278,304) 33,039,620
Business-type activities (3,260,859) (1,292,171) (1,829,904) 1,459,582 (1,768,439) 3,366,516 2,002,897 2,497,135 2,824,887 (985,715)
Total primary government (5,754,156)$ (13,903,262)$ (6,457,837)$ 55,425,623$ 3,353,037$ 7,344,562$ 14,366,869$ 7,713,795$ 1,546,583$ 32,053,905$
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 2 - Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis)
Extraordinary gain/(loss on dissolution of
redevelopment agency
Fiscal Year
170
Table 3 - Fund Balances of Governmental Funds
2009 2010
General fund:
Reserved 500,389$ 5,827,294$
Unreserved 11,914,867 3,777,753
Total general fund 12,415,256$ 9,605,047$
All other governmental funds:
Reserved 43,489,276$ 47,472,564$
Unreserved, reported in:
Special revenue funds 21,491,624 13,022,299
Capital projects funds 1,320,550 1,045,279
Debt service funds 482,915 482,548
Redevelopment agency (36,129,562) (42,709,359)
Unassigned
Total all other governmental funds: 30,654,803$ 19,313,331$
General fund:2011 2012 2013 2014 2015 2016 2017 2018
Nonspendable 21,615,263$ 20,951,468$ 20,993,673$ 20,927,944$ 16,794,925$ 17,319,446$ 14,315,813$ 14,247,791$
Unassigned (5,311,304) (5,817,312) (4,690,928) (509,996) 2,752,257 5,833,733 10,748,092 8,175,057
Total general fund:16,303,959$ 15,134,156$ 16,302,745$ 20,417,948$ 19,547,182$ 23,153,179$ 25,063,905$ 22,422,848$
Grants and Seizure:
Nonspendable 8,730$ 2,891$ -$
Restricted - 1,609,588.00 -
Unassigned (2,459,180.00) (420,193.00) -
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$ 4,204$
Restricted 23,297,599 11,062,074 9,005,070 9,222,166 10,499,020 12,659,961 13,166,548 15,603,843
Committed - - - - - - - 498,066
Unassigned (32,625,038) (187,467) (376,870) (125,576) (12,478) (35,499) (499,998) (358,442)
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$ 15,747,671$
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
CITY OF AZUSA
Last Ten Fiscal Years (modified accrual basis)
Fiscal Year
Fiscal Year
171
Table 4 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues:
Taxes 31,265,067$ 27,033,859$ 32,206,954$ 29,353,626$ 29,180,382$ 29,266,387$ 31,314,539$ 32,172,021$ 34,549,619$ 35,537,492$
Assessments 2,930,897 3,027,016 3,098,219 2,201,117 1,605,028 2,216,830 1,299,713 1,875,271 1,941,549 2,232,012
Licenses and permits 381,993 472,389 610,298 1,270,221 1,369,901 1,586,117 1,600,109 1,096,325 1,167,805 1,164,736
Intergovernmental 5,960,103 4,064,951 3,829,513 3,482,499 2,856,210 4,469,748 4,674,688 3,635,890 6,317,682 4,134,939
Charges for services 2,734,773 3,185,660 3,059,369 3,399,276 3,288,109 4,396,994 4,647,255 4,505,844 3,775,160 3,641,642
Investment income 1,859,424 1,335,922 994,621 872,118 157,022 131,515 346,266 442,987 990,976 308,488
Fines and forfeitures 967,012 1,104,715 119,111 978,829 989,616 1,343,318 1,343,809 1,328,383 1,068,510 1,124,080
Contributions 106,450 113,363 157,930 109,255 64,461 84,870 10,864,485 99,594 78,836 103,502
Miscellaneous 713,547 573,008 - 1,492,038 384,382 870,199 678,623 1,759,473 1,563,941 162,787
Total Revenues 46,919,266 40,910,883 45,373,595 43,158,979 39,895,111 44,365,978 56,769,487 46,915,788 51,454,078 48,409,678
Expenditures:
Current:
General government 12,490,585 14,248,881 10,623,623 10,070,713 7,168,707 6,762,467 6,684,724 7,545,443 10,919,440 9,846,360
Public safety 26,948,793 19,144,169 19,824,369 20,379,672 20,077,868 20,877,090 21,779,069 22,490,820 22,560,287 25,727,339
Community development 5,191,932 3,271,672 3,423,224 3,223,201 3,053,950 2,564,915 2,364,558 2,588,161 2,970,565 3,017,805
Parks and recreation 3,607,838 3,519,626 3,729,125 3,770,465 3,453,469 3,561,491 3,589,952 4,212,160 3,916,250 4,161,675
Public works 3,847,822 3,963,820 4,204,180 7,358,644 4,173,502 4,245,273 4,033,352 4,304,379 4,286,018 4,205,386
Capital Outlay 3,493,096 2,804,345 2,762,698 1,554,151 2,348,624 2,204,482 1,725,176 6,433,318 1,128,736 3,486,632
Debt service:
Principal retirement 1,355,000 2,020,000 2,494,212 2,615,717 1,479,367 1,706,996 12,160,286 1,230,000 1,420,000 1,604,111
Interest and fiscal charges 5,298,820 7,115,425 7,295,680 2,537,665 471,835 401,265 417,459 562,530 405,392 344,203
878,581 - - - - - - - - -
Total Expenditures 63,112,467 56,087,938 54,357,111 51,510,228 42,227,322 42,323,979 52,754,576 49,366,811 47,606,688 52,393,511
Excess (Deficiency) of revenues
over (under) expenditures (16,193,201) (15,177,055) (8,983,516) (8,351,249) (2,332,211) 2,041,999 4,014,911 (2,451,023) 3,847,390 (3,983,833)
Other Financing Sources (Uses):
Capital lease financing 162,000
Transfer in 25,925,067 10,710,775 24,569,629 5,900,632 6,003,156 6,310,394 6,174,749 6,839,073 7,852,410 8,636,279
Transfer out (23,675,680) (9,362,595) (23,841,239) (4,818,370) (4,705,827) (4,777,269) (5,569,235) (5,316,340) (6,113,133) (6,604,669)
Notes and loans issued 25,879,924 391,867 986,314 1,305,892 - - - 3,570,000 - -
Other financing sources (323,410) - - - - - - 168,899 4,307 1,034,927
Total Other Financing Sources
(Uses)27,805,901 1,740,047 1,714,704 2,388,154 1,297,329 1,533,125 605,514 5,261,632 1,743,584 3,228,537
Extraordinary gain/(loss) on dissolution
of redevelopment agency - - - 10,087,999 - - (4,113,065) - - -
Net change in fund balances 11,612,700$ (13,437,008)$ (7,268,812)$ 4,124,904$ (1,034,882)$ 3,575,124$ 507,360$ 2,810,609$ 5,590,974$ (755,296)$
Debt service as a percentage of
noncapital expenditures 11.2%17.1%19.0%10.3%4.9%5.3%24.6%4.2%3.9%4.0%
Source: City of Azusa Finance Department
Bond issuance costs
CITY OF AZUSA
Fiscal Year
172
Fiscal Year Residential
Commercial/
Industrial Other Total
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$
2018 11,739,362 20,198,935 1,391,350 33,329,647$
Source: City of Azusa Light & Water Department
Type of Customer
City of Azusa
Table 5 - Light Department
Electricity Sold by Type of Customer
Last Ten Fiscal Years
173
Fiscal Monthly Rate per Rate per
Year Ended Base 0 - 250 >250
June 30 Rate kWh kWh
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
2018 5.80 0.1091 0.1487
NOTE:
Source: City of Azusa Light & Water Department
City of Azusa
Table 6 - Electricity Rates
Last Ten Fiscal Years
Rates are based on residential meter, which is the standard
household meter size. There is an additional charge for excess-
use rate above normal demand.
174
Table 7 - 10 Largest Electrical Customers
2009 2010 2011 2012 2013 2014 2015 2016 2017
Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of
Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light Light Total Light
Light Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 1,686,278$ 5.484% 1,907,792$ 6.243% 2,104,018$ 6.398% 1,741,024$ 4.913% 1,780,989$ 4.965% 1,802,237$ 4.943% 1,825,551$ 4.697% 1,745,792$ 4.867% 1,717,597$ 4.662%
Archcom Technology - 0.000%- 0.000%- 0.000% 223,383 0.630%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Artisan Screen Process 244,353 0.795% 289,808 0.948% 319,455 0.971% 301,378 0.851%- 0.000% 546,126 1.498% 477,290 1.228%- 0.000%- 0.000%
Azusa MRFTS - 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000% 597,615 1.537% 587,778 1.639% 589,515 1.600%
Azusa USD 851,020 2.768% 848,494 2.777% 954,045 2.901% 896,318 2.530% 856,373 2.387% 883,569 2.423% 902,905 2.323% 871,002 2.428% 841,194 2.283%
Azusa Western 259,979 0.846% 187,312 0.613% 241,542 0.734% 232,823 0.657%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Buena Vista Food Prod - 0.000%- 0.000% 312,836 0.951% 329,687 0.930% 333,594 0.930% 357,445 0.980% 382,480 0.984%- 0.000%- 0.000%
California Amforge Corp 300,181 0.976% 246,842 0.808% 213,367 0.649% 295,442 0.834% 651,233 1.815%- 0.000%- 0.000% 270,488 0.754% 273,803 0.743%
Calmat Cite 2353-P3 0.000%0.000%0.000%0.000%0.000%0.000% 451,282 1.258% 442,621 1.201%
City of Azusa 1,050,852 3.418% 1,099,736 3.599% 1,112,047 3.382% 1,045,326 2.950% 1,206,165 3.362% 1,347,507 3.696% 1,228,641 3.161% 1,166,557 3.252% 1,249,473 3.391%City of Glendora 514,909 1.675%630,202 2.062%575,089 1.749%72,098 0.203%679,753 1.895%613,336 1.682%479,889 1.235%540,173 1.506%693,404 1.882%
Costco Wholesale Corp.617,698 2.009% 605,910 1.983% 612,630 1.863% 613,230 1.731% 642,560 1.791% 646,887 1.774%- 0.000%- 0.000%- 0.000%
Criterion Catalyst & Tech LP 823,604 2.679% 876,881 2.869% 181,832 0.553%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Hansen's Juices (Naked Juice)- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
LA County Metro Transporation Authority - 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000% 464,543 1.261%
Morris Partnership 234,419 0.762% 247,137 0.809% 156,898 0.477% 226,681 0.640%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Northrop Grumman Sys.507,168 1.649% 485,763 1.590% 504,436 1.534% 468,774 1.323% 366,623 1.022% 482,780 1.324% 466,673 1.201% 503,809 1.405% 491,900 1.335%
Rainbird Corp./CA Div.876,034 2.849% 913,206 2.988% 933,722 2.839% 193,342 0.546%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
S & S Foods LLC 1,310,363 4.262% 1,377,385 4.507% 1,444,281 4.392% 1,386,170 3.912% 1,584,047 4.416% 1,679,420 4.606% 1,645,159 4.233% 1,672,106 4.662% 1,728,231 4.691%
Stater Bros Market - 0.000%- 0.000%- 0.000% 145,484 0.411%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Target Corporation - 0.000%- 0.000%- 0.000% 301,707 0.851%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
T H Molding Corporation - 0.000%- 0.000%- 0.000% 401,075 1.132%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Thermal Remediation Solutions - 0.000% 187,845 0.615% 195,798 0.595% 154,795 0.437%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Verizon Wireless Inc 528,635 1.719% 543,655 1.779% 601,882 1.830% 894,493 2.524% 1,064,241 2.967% 1,205,326 3.306% 1,357,641 3.493% 1,265,361 3.528%- 0.000%
Total 9,805,493$ 31.891% 10,447,967$ 34.189% 10,463,878$ 31.819% 9,923,230$ 28.004% 9,165,578$ 25.866% 9,564,633$ 26.233% 9,363,844$ 24.090% 9,074,348$ 25.299% 8,492,281$ 23.050%
Historical information not available for 10 year comparison.
Source: City of Azusa Light & Water Department
City of Azusa
Last Seven Fiscal Years
175
Last Ten Fiscal Years
Fiscal Year Residential
Commercial Industrial Other (2)Total
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$
2018 10,327,873 4,034,433 2,895,842 1,654,212 18,912,360$
Source: City of Azusa Light & Water Department
City of Azusa
Table 8 - Water Sold by Type of Customer
Type of Customer
176
Fiscal Monthly Tier 1 Tier 2 Tier 3
Year Ended Base Rate per Rate per Rate per
Activity Rate CCF CCF CCF
0-17 CCF >17 CCF
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
2018 14.87 1.071 1.748 2.206
NOTE:
(2) Tiers changed from 17 to 12 in July 2009.
(4) New rates were implented for FY 2016-17.
Source: City of Azusa Light & Water Department
City of Azusa
Table 9 - Water Rates
Last Ten Fiscal Years
(1) Rates are based on 3/4" meter, which is the standard household meter size. There is an additional
charge for excess-use rate above normal demand.
(3) A Phase III Drought was declared effective May 1, 2014, where a third tier was implemented.
177
Table 10 - Largest Water Customers
2009 2010 2011 2012 2013 2014 2015 2016 2017
Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of
Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water Water Total Water
Water Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 119,322$ 0.864% 131,298$ 0.843% 212,880$ 1.278% 126,737$ 0.742% 130,761$ 0.721% 138,644$ 11.328% 121,552$ 10.545% 142,796$ 6.256% 174,221 0.984%
Azusa Carefree Association 44,259 0.321% 43,429 0.279% 52,285 0.314% 65,984 0.386%- 0.000%- 0.000%52,656.00 4.568%- 0.000%- 0.000%
Azusa Greens Country Club 115,081 0.833% 119,771 0.769% 114,596 0.688% 131,809 0.772% 163,455 0.901% 157,909 12.903% 163,734 14.205% 205,146 8.988% 179,498 1.014%
Azusa USD 293,496 2.125% 263,852 1.695% 304,265 1.827% 285,883 1.674% 390,372 2.152% 380,303 31.074% 309,041 26.811% 303,127 13.281% 398,863 2.254%
Azusa Western 419,714 3.040% 328,989 2.113% 244,528 1.468% 259,555 1.520% 262,656 1.448% 251,656 20.563% 277,779 24.099% 392,150 17.181% 322,098 1.820%
Calmat Site #1055-A - 0.000%- 0.000%54,439 0.327% 36,368 0.213%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Citrus College 44,088 0.319% 43,123 0.277% 45,507 0.273% 47,347 0.277% 49,133 0.271%- 0.000%- 0.000%- 0.000%- 0.000%
City of Azusa 86,393 0.626% 94,955 0.610% 141,459 0.849% 137,730 0.807% 150,954 0.832% 157,052 12.833% 116,061 10.069% 170,869 7.486% 215,483 1.217%
Covina Valley USD 84,487 0.612% 74,237 0.477% 42,644 0.256% 110,587 0.648% 167,684 0.924% 142,356 11.632% 145,329 12.608% 137,576 6.027% 140,192 0.792%
Hector Perales - 0.000%280,785 1.804%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Lovin Oven 43,537 0.315%- 0.000%47,099 0.283% 52,250 0.306%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Mike Nijjar-060 - 0.000%71,217 0.457%- 0.000%79,676.00 0.467%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Miller Brewery 1,371,278 9.931% 1,280,978 8.229% 1,149,331 6.902% 1,126,387 6.597% 1,155,227 6.369% 1,068,819 87.332% 957,677 83.084% 928,794 40.692% 977,763 5.524%
Mountain Cove - 0.000%72,707 0.467%- 0.000%68,138 0.399%- 0.000%- 0.000%- 0.000%126,479.00 5.541%- 0.000%
NCI 48,432 0.351% 56,389 0.362% 64,368 0.387% 68,253 0.400%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Ready Pac 371,827 2.693% 431,649 2.773% 499,358 2.999% 533,105 3.122% 556,493 3.068% 546,810 44.679% 438,847 38.073% 564,237 24.720% 618,202 3.493%
S&S Foods LLC 69,207 0.501% 83,896 0.539% 113,343 0.681% 122,666 0.718% 132,658 0.731% 129,093 10.548% 173,338 15.038% 129,519 5.674% 162,258 0.917%
Southern California Edison - 0.000%- 0.000%- 0.000% 34,983 0.205%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Villa Azusa Association - 0.000%- 0.000%- 0.000% 59,898 0.351%- 0.000%- 0.000%- 0.000%- 0.000%- 0.000%
Vulcan Materials - 0.000%- 0.000%- 0.000%- 0.000%51,760 4.229%- 0.000%- 0.000%- 0.000%
Total 3,111,121$ 22.531% 3,377,276$ 21.695% 3,086,102$ 18.532% 3,347,356$ 19.604%3,159,393$ 17.418%3,024,402$ 16.936% 2,756,014$ 16.010% 3,100,693$ 135.846% 3,188,578$ 18.016%
Source: City of Azusa Light & Water Department
City of Azusa
Last Ten Fiscal Years
178
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
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%
2018 3,181,170,861 344,807,866 984,941,845 4,510,920,572 0.14920 4,510,920,572 100.0%
NOTES:
Exempt assessed values are not included in assessed value.
Source: HdL Coren & Cone
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based
upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation
factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new
owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation date
shown above represents the only data currently available with respect to the actual market value of taxable property and is
subject to the limitations described.
CITY OF AZUSA
Table 11 - Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousand of dollars)
179
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
City Direct Rates:
General City 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$
Redevelopment Agency 1.01800 1.01800 1.01800 1.01800 (1)(1)(1)(1)(1)(1)
Total Direct Rate 0.32698 0.33638 0.34228 0.34311 0.33678 0.13976 0.13961 0.13918 0.13920 0.13812
Overlapping Rates:
Azusa Unified School District 0.03603 0.03909 0.05695 0.05628 0.04641 0.03765 0.04468 0.11479 0.10430 0.10591
Citrus Community College District 0.02441 0.02397 0.02516 0.02447 0.02590 0.02226 0.02327 0.01641 0.02406 0.02229
Covina Valley Unified School District 0.07863 0.08592 0.09003 0.08999 0.09500 0.11472 0.11426 0.11062 0.12581 0.14205
Duarte Unified School District 0.06739 0.07256 0.07542 0.11237 0.12657 0.12283 0.14263 0.14193 0.14398 0.14061
Metropolitan Water District 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.02300 0.03000
Mt. San Antonio College 0.02333 0.02571 0.02636 0.02642 0.02896 0.02023 0.02129 0.02154 0.02400 0.02371
Total Tax Rate 0.39700 0.41446 0.44113 0.47674 0.49005 0.48490 0.51334 0.57250 0.59436 0.61378
(1)The Redevelopment Agency dissolution by the State of California caused the tax
Source: L.A. County Assessor 2008/09 - 2017/18 Tax Rate Table
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter
approved bonds.
RDA rate is based on the largest RDA tax rate area and includes only rates from indebtedness adopted prior to 1989 per
California State statute. RDA direct and overlapping rates are applied only to the incremental property values.
CITY OF AZUSA
Table 12 - Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
allocation bonds to be transferred to the Successor Agency and is a fiduciary fund.
General fund tax rates are representative and based upon the direct and overlapping rates for the largest General Fund tax
rate area by net taxable value.
Total Direct Rate is the weighted average of all individual direct rates applied by the City. The Direct Rate percentages
presented in the columns above is not the sum of the General City Rate and the Redevelopment Agency Rate (RDA).
180
Table 13 - Principal Property Tax Payers (Top Ten)
Current Year and Ten Years Ago
2018 2009
Percentage of Percentage of
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation 100,101,109 2.22% 114,062,074 3.21%
Rainbird Corp/CA Div.39,665,279 0.88% 44,525,024 1.25%
Target Corporation 34,398,099 0.76%0.00%
PPF Industrial 823 8th Street 34,247,328 0.76% 29,848,059 0.84%
10th Street XC LLC 29,597,248 0.66%0.00%
Citrus Crossing Properties Fee 26,370,726 0.58%0.00%
Azusa Pacific University 23,504,490 0.52% 104,553,775 2.94%
Costco Wholesale Corporation 22,199,248 0.49%0.00%
Azusa Land Reclamation Inc.21,984,430 0.49%0.00%
VPM Soldano Senior Village LP 21,266,374 0.47%0.00%
S & S Foods LLC 0.00% 19,052,371 0.54%
South Decatur LP 0.00%0.00%
Azusa Land Partners LLC 0.00%133,156,469 3.75%
Starfield Azusa Heritage Oaks LLC 0.00%0.00%
PLC Mapleton LLC 0.00% 21,964,048 0.62%
Criterion Catalyst Company LP 0.00% 19,529,854 0.55%
Cemex Inc 0.00%0.00%
RC Properties VI LLC 0.00%53,765,753 1.51%
William Lyon Homes Inc 0.00% 20,769,689 0.58%
353,334,331$ 7.83% 561,227,116$ 15.80%
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
City of Azusa
181
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
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%
2018 4,980,719 4,900,774 98.4% 256,661 5,157,435 103.5%
Source: County of Los Angeles Auditor-Controller and
City of Azusa Finance Department
Table 14 - Property Tax Levies and Collections
CITY OF AZUSA
Last Ten Fiscal Years
182
Last Ten Fiscal Years
Governmental Activities Business-type Activities
Fiscal Year Certificate Tax Taxable Unamortized Total Certificate Unamortized Total Total Percentage of Percentage of
Ended of Allocation Pension Premiums/ Governmental of Revenue Premiums/ Business-type Primary Assessed Personal
June 30 Loans Participation
Bonds (1)Funding Bonds (2)(Discounts) Activities Loans(7)Participation (3)Bonds (4)(Discounts) Activities Governmental Values Income
2009 8,974,172 3,695,000 57,056,201 7,215,000 76,940,373 - 28,500,000 54,850,000 83,350,000 160,290,373 4.52% 19.00%
2010 9,366,038 3,480,000 55,814,889 6,735,000 75,395,927 - 27,125,000 54,570,000 81,695,000 157,090,927 4.57% 18.02%
2011 9,685,015 3,255,000 54,768,014 6,180,000 73,888,029 - 25,690,000 54,275,000 79,965,000 153,853,029 4.75% 18.00%
2012 10,005,461 3,025,000 - (6)5,555,000 18,585,461 5,630,000 3,070,000 68,500,000 77,200,000 95,785,461 2.99% 10.85%
2013 10,403,644 2,785,000 - (6)4,855,000 18,043,644 5,405,000 2,540,000 68,180,000 76,125,000 94,168,644 2.90% 11.12%
2014 10,700,656 2,540,000 - 4,075,000 17,315,656 5,080,000 1,985,000 67,380,000 74,445,000 91,760,656 2.68% 10.85%
2015 - (8)2,285,000 - 3,205,000 5,490,000 4,730,000 1,400,000 65,445,000 71,575,000 77,065,000 2.09% 8.95%
2016 - 5,590,000 (9)- 2,240,000 179,828 7,830,000 4,365,000 780,000 60,205,000 3,836,045 69,186,045 77,016,045 1.94% 8.48%
2017 - 5,235,000 (9)- 1,175,000 158,030 6,568,030 3,990,000 130,000 58,320,000 3,589,433 66,029,433 72,597,463 1.72%8%G
B
2018 122,889 10 4,845,000 (9)- - 156,488 5,124,377 3,605,000 - 55,730,000 3,342,821 62,677,821 67,802,198 1.50%(5)
(1)The Redevelopment Agency issued $9,051,416 of new TABS in 2005, $15,780,000 2007 Series A Merged Project Area TABS and $4,790,000 Series B Merged Project area TABS,$6,715,000 2008
Series A Merges Project Area TABS, and $11,580,000 2008 Housing Tax Allocation Bonds Series B.
(2)The City issued $7,215,000 of taxable pension funding bonds in 2008
(3)The Light Fund issued $11,995,000 of new Certificates of Participation in 2003; issued refunding revenue bonds of $5,820,000 in 2012.
(4)The Water Fund replaced its Revenue Bond with Certificates of Participation in December 2003; issued refunding revenue bonds of $8,715,000 in 2012, 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.
(10)The General Fund entered into a capital lease agreement to fund the purchase of four police vehicles.
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 15 - Ratios of Outstanding Debt by Type
183
Fiscal Year Certificates Tax Debt per
Ended of Allocation City
June 30 Participation Bonds Total Capita
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
2018 1,460,000 (1)1,460,000 29
(1)The Redevelopment Agency dissolution by the State of California caused the tax
allocation bonds to be transferred to the Successor Agency and is a fiduciary fund
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 16 - Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
184
Percentage Net
Gross Bonded Applicable Bonded
Debt Balance To City Debt
METROPOLITAN WATER DISTRICT 29,354,442 0.124 36,543
CITRUS CCD DS 2004 2009 SERIES C 4,695,302 16.077 754,853
CITRUS CCD DS REF BOND SERIES 2013 10,910,000 16.077 1,753,976
CITRUS CCD DS 2004 SERIES 2014D 18,918,096 16.077 3,041,419
CITRUS CCD DS 2004, 2015 SERIES E 9,805,000 16.077 1,576,327
CITRUS CCD DS REF BONDS 2015 SERIES A 48,185,000 16.077 7,746,593
MT. SAN ANTONIO CCD DS 2008 SERIES 13A 200,306,691 0.031 62,303
MT. SAN ANTONIO CCD DS 2008 SERIES 2013B 7,350,000 0.031 2,286
MT. SAN ANTONIO CCD DS 2013 REF SERIES A 63,210,000 0.031 19,661
MT. SAN ANTONIO CCD DS 2013 REF SERIES B 37,010,000 0.031 11,512
MT. SAN ANTONIO CCD DS 2008 SERIES 2015C 16,750,000 0.031 5,210
MT. SAN ANTONIO CCD DS 2015 REF BONDS 19,130,000 0.031 5,950
AZUSA UNIFIED 2002 SERIES 2007 29,911,748 66.762 19,969,792
AZUSA UNIFIED REFUND BOND 2002 SERIES 2011 15,720,000 66.762 10,495,044
AZUSA UNIFIED 2014 SERIES A 24,135,000 66.762 16,113,098
AZUSA UNIFIED REFUND BOND 2016 212,220,000 66.762 141,683,099
AZUSA UNIFIED 2014 SERIES B 25,000,000 66.762 16,690,592
COVINA VALLEY USD DS 2001 SERIES B 11,762,939 0.300 25,255
COVINA VALLEY USD DS 2006, 07 SERIES B 1,818,265 0.300 5,450
COVINA VALLEY USD DS 2001 REFUND 2010 SERIES A 10,320,000 0.300 30,930
COVINA VALLEY USD DS 2012 SERIES A 26,235,000 0.300 78,629
COVINA VALLEY USD DS 2013 REF BONDS 37,840,000 0.300 113,410
COVINA VALLEY USD DS 2012 SERIES B 36,145,000 0.300 108,330
COVINA VALLEY USD DS 2012 SERIES C 16,970,000 0.300 50,861
COVINA VALLEY USD DS 2012 SERIES D 46,410,000 0.300 139,096
DUARTE USD DS 1998 SERIES B 2,182,773 0.469 10,246
DUARTE USD DS 1998 SERIES C 4,113,669 0.469 19,310
DUARTE USD DS 1998 SERIES E 3,614,534 0.469 16,967
DUARTE USD DS REFUNDING 1998, 2010 SERIES A 143,000 0.469 6,713
DUARTE USD DS 2010 SERIES A 10,517,314 0.469 49,370
DUARTE USD DS 2010 SERIES B 17,783,932 0.469 83,481
DUARTE USD DS 2013 REF BONDS 1,685,000 0.469 7,910
DUARTE USD DS 2010 SERIES C 8,693,307 0.469 40,808
DUARTE USD DS 2010 SERIES D 5,000,000 0.469 23,471
Total Overlapping Debt 220,778,495
2017/18 Assessed Valuation: $3,506,958,978 After Deducting $1,003,961,594 Incremental Value.
Debt to Assess Valuation Ratios: Direct Debt 0.00%
Overlapping Debt 6.30%
Total Debt 6.30%
Source: HdL Coren & Cone
City of Azusa
Table 17 - Direct and Overlapping Debt
June 30, 2018
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessed value that
is within the city's boundaries and dividing it by each unit's total taxable assessed value.
185
2009 2010 2011 2012 2013 2014 2015 2016 2017
Assessed valuation 2,548,482,077$ 2,292,870,440$ 2,252,687,451$ 2,297,922,448$ 2,459,261,962$ 2,661,768,903$ 2,865,858,608$ 3,038,069,746$ 3,249,119,133$
Conversion percentage 25%25%25%25%25%25%25%25%25%
Adjusted assessed valuation 637,120,519 573,217,610 563,171,863 574,480,612 614,815,491 665,442,226 716,464,652 759,517,437 812,279,783
Debt limit percentage 15%15%15%15%15%15%15%15%15%
Legal debt limit 95,568,078 85,982,642 84,475,779 86,172,092 92,222,324 99,816,334 107,469,698 113,927,615 121,841,967
Amount of debt applicable to debt limit (1)- - - - - - - - -
Legal debt margin 95,568,078 85,982,642 84,475,779 86,172,092 92,222,324 99,816,334 107,469,698 113,927,615 121,841,967
Source: City of Azusa - Finance Department
City of Azusa
Table 18 - Legal Debt Margin Information
Fiscal Year
Last Ten Fiscal Years
(1) Total Bonded debt issued by the City, excluding certificates of participation, tax allocation bonds, special assignment bonds, revenue bonds payable from enterprise funds, and pledge mortgage revenues and revenue bonds
issued by entities other than the City of Azusa.
186
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage
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 14,443,200 6,580,322 1,885,000 2,206,854 4,091,854 1.61
2018 22,563,500 16,466,954 6,096,546 1,940,000 2,143,553 4,083,553 1.49
(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
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 34,475,491 7,172,397 650,000 200,974 850,974 8.43
2018 35,094,159 28,553,883 6,540,276 780,000 172,690 952,690 6.87
(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 Finance Department
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage
REVENUE BONDS - WATER FUND(1)
CERTIFICATES OF PARTICIPATION AND REVENUE BONDS - ELECTRIC FUND (1)
Last Ten Fiscal Years
187
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
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 1,437,262 1,272,492 365,000 156,833 521,833 2.44
2017 2,782,319 1,561,763 1,220,556 375,000 144,685 519,685 2.35
2018 3,056,188 1,946,750 1,109,438 385,000 132,213 517,213 2.15
(1)Excludes interest and depreciation expense.
Source: City of Azusa Finance Department
REVENUE BONDS - SEWER FUND
CITY OF AZUSA
Table 19 - Pledged Revenue Coverage (continued)
Last Ten Fiscal Years
188
Debt Service Requirements
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Total Coverage
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 1,853,012 2,024,791 3,877,803 0.58
2018 4,895,310 8,868,835 2,019,897 10,888,732 0.45
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage
Last Ten Fiscal Years
189
Per Capita
Calendar City County Personal Personal Unemployment
Year Population
Population (1)Income Income
Rate(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%
2011 46,618 9,889,520 854,741,000 18,335 9.3%
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%
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%
2016 49,762 1,015,058 907,890,000 18,244 3.9%
2017 49,864 (1)10,163,507 942,407,000 18,865 4.3%
(3)
2018 49,954 10,283,729
(2)(2)4.5%
Sources: HdL Coren & Cone, Los Angeles County Assessor
(1)U.S. Census Bureau and Bureau of Labor Statistics
(2)Data unavailable
(3) Data restated based on final rates from State of California EDD
CITY OF AZUSA
Table 21 - Demographic and Economic Statistics
Last Ten Calendar Years
190
City of Azusa
Table 22 - Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Azusa Pacific University 2632 1 10.40% 1600 1 (2)
Azusa Unified School District* 1752 2 6.92% 900 3 (2)
Northrop Grumman 901 3 3.56% 1100 2 (2)
City of Azusa 357 4 1.41% 522 4 (2)
Costco Wholesale Corporation 312 5 1.23% 311 5 (2)
S&S Foods LLC 300 6 1.19%(2)
Hanson Distribution Company 220 7 0.87%(2)
Buena Vista Food Products 178 8 0.70%(2)
OJ Insulation 165 9 0.65%(2)
Target Store 155 10 0.61%(2)
Berger Bros.0.00% 300 6 (2)
Pacific Precision Metals 0.00% 250 7 (2)
Tru Wood Products 0.00% 160 8 (2)
Wynn Oil Company 150 9 (2)
Rain Bird 132 10
(2)
Total of Top Employers 6,972 5,425
Total Employees in City 25,300 (1)- (2)
Sources:
2008-09 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
2017-18 2008-09
191
Table 23 - Full-time and Part-time Employees By Function
Function 2009 2010 2011 2012 2013 2014 2015 2016 2017
General government 50.348 49.261 48.411 30.934 33.593 31.146 31.146 25.821 49.775
Public safety 99.035 98.945 97.395 88.750 97.570 91.750 91.750 95.200 94.500
Community development 15.985 16.376 16.196 14.197 14.651 15.533 15.533 15.462 17.462
Parks and recreation 51.650 55.306 56.557 48.023 45.407 49.317 49.317 50.260 37.127
Public works 31.115 31.115 31.115 30.058 30.265 27.181 27.181 30.259 30.233
Water 44.425 44.025 43.775 42.625 43.275 46.617 46.617 44.330 27.300
Electric 36.125 37.725 36.475 37.625 37.975 32.492 32.492 32.170 56.086
Sewer/Wastewater 10.000 10.250 10.250 10.230 9.570 7.540 7.540 8.040 7.235
Total 338.683 343.003 340.174 302.442 312.306 301.576 301.576 301.541 319.718
Source: City of Azusa Finance Department
Assigned Full-Time Equivalent (FTE) Totals
City of Azusa
Last Ten Fiscal Years
Fiscal Year
192
Table 24 - Operating Indicators by Function
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Police:
Calls for service 56,610 54,896 54,734 57,210 57,637 54,363 44,842 49,007 43,933 44,051
Parking citations issued 9,881 9,801 8,188 6,515 7,680 6,846 5,057 5,788 3,809 10,813
Public Works:
Street resurfacing (lineal miles) 14.3 2.5 6.0 4.2 4.3 5.3 3.0 1.2 1.1 1.8
Parks and recreation:
Number of recreation classes 196 310 56 73 101 211 177 584 552 472
Number of facility rentals 706 827 829 868 874 809 866 933 1,223 1,215
Water:
Number of service connections 23,014
(2)23,036 (2)23,100 (2)23,104 (2)23,302 (2)23,597 (2)23,871 (2)29,934 (2)24,156 (2)24,284
Average daily consumption 22,832 21,517 20,230 20,819 22,179 21,974 19,438 16,958 18,077 19,441
(hundred cubic feet)
Light:
Number of service connections 15,403 15,276
(2)15,362 (2)15,567 (2)15,749 (2)15,955 (2)16,466 (2)16,740 (2)16,555 (2)16,695
Average daily consumption 693,469 672,920 654,050 648,020 677,871 685,699 705,100 695,068 701,302 692,857
(kWh)
Sewer:
Number of service connections 14,073
(2)14,335 (2)14,071 (2)15,235 (2)15,374 (2)15,374 (2)16,074 (2)15,968 (2)16,002 (2)16,002
Refuse:
Number of residential customers 11,127
(2)11,254 (2)11,123 (2)11,293 (2)11,652 (2)11,866 (2)12,128 (2)12,234 (2)12,439 (2)12,422
Average daily collection 122 184 177 178 179 180 185 193 187 190
(thousands of pounds)
(1)Information not available
(2)Restated number of service connections beginning in FY 2006 to number of billed accounts and accounted for customers
outside the City that are billed every 2 months.
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
CITY OF AZUSA
Last Ten Fiscal Years
Fiscal Year
193
Table 25 - Capital Asset Statistics by Function
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Police:
Stations 1111111111
Public Works:
Streets (lineal miles) 170 171 170 174 176 177 178 178 179 179
Traffic signals 52 53 52 53 53 55 56 57 57 58
Parks and recreation:
Parks 13 13 13 15 16 17 20 21 22 22
Park acreage 61616164647784858787
Community centers 3333333333
Water:
Water mains (miles) 312 315 315 315 315 315 315 281 281 281
Number of fire hydrant 2,594 2,594 2,600 2,810 2,815 2,820 2,820 2,444 2,444 444
Maximum daily capacity 40,000 40,000 40,000 70,500 70,500 70,500 70,500 70,500 70,500 70,500
(hundred cubic feet)
Light:
Metered Streetlights 65 65 65 65 65 65 65 64 64 64
Daily consumption (kWh)169 169 162 162 162 162 162 164 164 164
UnMetered Streetlights 2,423 2,463 2,463
Daily consumption (kWh)56 4,564 4,564
Sewer:
Sanitary sewers (miles)61 61 61 80 80 80 80 80 80 80
Storm sewers (miles)15 15 15 15 16 16 16 16 16 16
Maximum daily treatment capacity 48 48 48 48 60 60 60 60 60 60
(cubic feet per second)
Source: City of Azusa Police Department
City of Azusa Light & Water Department
City of Azusa Recreation Department
City of Azusa Public Works Department
CITY OF AZUSA
Last Ten Fiscal Years
Fiscal Year
194
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 Administrator
Payroll Specialist
CITY OF AZUSA
Table 26 - Schedule of Credits
Fiscal Year 2017/18
Also, a special thank you to all the Finance Department Staff: Dave Nguyen, Henry Quintero,
Richard Lam, Naomi Narvaez, Ruby Toledo, Helen Nsaidzeka, Merci Rodriguez, and Charles
Alvarez who also played roles in the collection of data and completion of the fiscal year
2017/18 CAFR.
195