HomeMy WebLinkAboutCity of Azusa ACFR 2021 - Final 2 Only posted on our site. Change on pg 90 7.C PARSCity of Azusa
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
City of Azusa, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Prepared by:
Administrative Services Department
Finance
City of Azusa
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION
Transmittal Letter ..................................................................................................................................................... i
Directory of City Officials ........................................................................................................................................ xi
Organization Chart ................................................................................................................................................... xii
GFOA Certificate of Excellence in Financial Reporting ...................................................................................... xiii
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 ..................................................................................................................... 36
Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 37
Statement of Cash Flows ...................................................................................................................... 38
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
Annual Comprehensive Financial Report
For the year ended June 30, 2021
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 ............................................................................................... 108
Schedule of Contributions – CalPERS Agent Multiple-Employer Plan ..................................................... 109
Schedule of Proportionate Share of the Net Pension Liability –
Cost Sharing Multiple-Employer Plan ..................................................................................................... 109
Schedule of Contributions – Cost Sharing Multiple-Employer Plan .......................................................... 110
Schedule of Changes in the Net Pension Liability and Related Ratios –
AMMA PARS Retirement Enhancement Plan ......................................................................................... 111
Schedule of Changes in the Net Pension Liability and Related Ratios –
Executive PARS Retirement Enhancement Plan ..................................................................................... 112
Schedule of Changes in the Net Pension Liability and Related Ratios –
IBEW PARS Retirement Enhancement Plan ............................................................................................ 113
Schedule of Changes in the Net Pension Liability and Related Ratios –
SEIU PARS Retirement Enhancement Plan ............................................................................................. 114
Schedule of Contribution – PARS Retirement Enhancement Plans ............................................................ 115
Schedule of Changes in the Total OPEB Liability and Related Ratios ........................................................ 116
Budgets and Budgetary Accounting ................................................................................................................ 117
Budgetary Comparison Schedule by Department – General Fund ............................................................ 118
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ........................................................................................................................... 122
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 126
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Grant and Seizure Special Revenue Fund ......................................................................................... 130
State Gasoline Tax Special Revenue Fund ......................................................................................... 131
Proposition A Special Revenue Fund ................................................................................................. 132
Proposition C Special Revenue Fund ................................................................................................. 133
Community Development Block Grant Special Revenue Fund ..................................................... 134
Senior Nutrition Special Revenue Fund ............................................................................................. 135
Public Benefit Program Special Revenue Fund ................................................................................. 136
Air Quality Improvement Special Revenue Fund ............................................................................ 137
Supplemental Law Enforcement Special Revenue Fund ................................................................. 138
Monrovia Nursery Special Revenue Fund ........................................................................................ 139
City of Azusa
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
Supplementary Information (Continued):
Employee Benefits Special Revenue Fund ......................................................................................... 140
Utility Mitigation Special Revenue Fund ........................................................................................... 141
Highway 39 Special Revenue Fund .................................................................................................... 142
LACMTA Special Revenue Fund ........................................................................................................ 143
Measure R Special Revenue Fund ....................................................................................................... 144
AB 939 Special Revenue Fund ............................................................................................................. 145
Rosedale Traffic Mitigation Special Revenue Fund ......................................................................... 146
RMR SB1 Special Revenue Fund ......................................................................................................... 147
Measure M Special Revenue Fund ..................................................................................................... 148
Fire Special Revenue Fund ................................................................................................................... 149
Measure W Special Revenue Fund ..................................................................................................... 150
Park In-Lieu Capital Project Fund ...................................................................................................... 151
Capital Projects Capital Project Fund ................................................................................................. 152
Public Works Endowment Capital Project Fund .............................................................................. 153
Public Financing Authority Debt Service Fund ................................................................................ 154
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 156
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 157
Combining Statement of Cash Flows ........................................................................................................ 158
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 160
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 162
Combining Statement of Cash Flows ........................................................................................................ 164
Supplemental Statement of Revenues, Expenses and Changes in
Net Position – Water – Enterprise Fund ......................................................................................................... 166
Supplemental Statement of Revenues, Expenses and Changes in
Net Position – Light – Enterprise Fund ........................................................................................................... 167
City of Azusa
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
STATISTICAL SECTION (Unaudited)
Table 1 - Net Position by Component ............................................................................................................. 170
Table 2 - Changes in Net Position .................................................................................................................... 172
Table 3 - Fund Balances of Governmental Funds ........................................................................................... 176
Table 4 - Changes in Fund Balances of Governmental Funds ...................................................................... 178
Table 5 – Light Department, Electricity Sold by Type of Customer ............................................................ 180
Table 6 – Electricity Rates ................................................................................................................................... 181
Table 7 – Largest Electricity Customers ........................................................................................................... 182
Table 8 – Water Sold by Type of Customer ..................................................................................................... 184
Table 9 – Water Rates .......................................................................................................................................... 185
Table 10 – Largest Water Customers ............................................................................................................... 186
Table 11 – Assessed Value and Estimated Actual Value of Taxable Property .......................................... 189
Table 12 – Direct and Overlapping Property Rates ....................................................................................... 190
Table 13 – Principal Property Tax Payers ....................................................................................................... 192
Table 14 – Property Tax Levies and Collections ............................................................................................ 193
Table 15 – Ratios of Outstanding Debt by Type ............................................................................................ 194
Table 16 – Ratio of General Bonded Debt Outstanding ................................................................................ 196
Table 17 – Direct and Overlapping Debt ......................................................................................................... 197
Table 18 – Legal Debt Margin Information ..................................................................................................... 198
Table 19 – Pledged Revenue Coverage ........................................................................................................... 200
Table 20 – Pledged Revenue Coverage, Tax Allocation
Bonds – Redevelopment Agency ............................................................................................................... 202
Table 21 – Demographic and Economic Statistics ......................................................................................... 203
Table 22 – Principal Employers ........................................................................................................................ 205
Table 23 – Full-time and Part-time Employees by Function ........................................................................ 206
Table 24 – Operating Indictors by Function ................................................................................................... 208
Table 25 – Capital Asset Statistics by Function .............................................................................................. 210
Table 26 – Schedule of Credits .......................................................................................................................... 212
April 28, 2022
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 Annual Comprehensive Financial Report
(“ACFR”) for the fiscal year ended June 30, 2021 (“FY 2020-21”). 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, 2020 – June 30, 2021).
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 ACFR 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 ACFR 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, 2021, are free of material misstatement. The City
received an unmodified opinion from its independent auditor for the City’s ACFR for the year
ended June 30, 2021, which means Badawi believes the City’s ACFR is presented fairly, in all
material respects. The independent auditor’s report is presented as the first component of the
financial section of the ACFR. The scope of the examination did not include the Statistical Section
of this report.
Management’s Discussion and Analysis (“MD&A”) immediately follows the Independent
Auditors’ Report and provides a narrative introduction, overview, and analysis of the basic
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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 over 50,000.
Impacted by the COVID-19 (Coronavirus) pandemic, the estimated median household income
declined from $68,200 last year to $65,900 annually, but still Azusa remained the fasted growing
city in the San Gabriel Valley for the past five years. 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.
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LOCAL ECONOMIC CONDITIONS AND OUTLOOK
Azusa’s diverse local economy proved to be especially beneficial in weathering the global
economic impacts of COVID-19. The City is less dependent on single source or cyclical revenues
than most of the surrounding cities in the region, and thus, comparatively better insulated from
major economic downturn. Investment in Azusa’s downtown has continued revitalize the area in
accordance with the Transit Oriented Development (TOD) Specific Plan. Construction of the
Orchard project will be completed Fall 2022, consisting of 163 residential units and 31,500 square
feet of retail space. Also in the downtown, the Lumia project, consisting of 127 residential units
and an additional 12,000 square feet of retail broke ground in February 2022 and scheduled for
completion in Summer 2024. In anticipation of increased Downtown traffic, the City has
programmed funding for Phase 1 beautification of the area, including façade and lighting
improvements, new outside furnishings, and updated hard and soft scaping.
In addition to the Downtown projects, several other residential, commercial, industrial and mixed
use developments are in entitlement, plan check, or construction phases: One Legacy, the world’s
largest organ, eye and tissue recovery organization acquired a 98,000 SF building, is adding an
additional 45,000 SF, and near construction completion with a $60 million state-of-the-art
transplant recovery and research center by end of 2022 to relocate their headquarters from Los
Angeles to Azusa; 23 Single Family Dwellings and a new public park is under entitlement phase
in the City’s prominent Rosedale Community; a new 97,200 SF industrial building is under
construction; 17 residential townhomes in three locations are in Plan Check phase and an
additional 8-unit townhome project is in entitlement phase.
The City is proud of other planning and development accomplishments. In early 2022, the City
signed an agreement with Los Angeles County Metropolitan Transportation Authority (LA Metro)
to occupy an 8,200 SF City-owned building known as The Promenade at Citrus, for use as a system
security and law enforcement office to support the LA Metro Gold Line railway, functioning on a
24 hour, 7 day per week basis as a dispatch and training center. This lease will generate over $1.5
million for the City in the first 10 years of the lease. Azusa Walks, the City’s first pedestrian master
plan and the 2021-2029 Housing Element Update were also recently adopted.
Unemployment rate in Azusa increased from 4.2% in FY 2019-20 to 11.6% in FY 2020-21, on par
with state and national trends post COVID-19 impacts. However, 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 have increased by nearly 73% over the last ten
years. Construction of new homes in various housing developments, such as in the luxury Rosedale
community and several other smaller tracts in the southern areas of the City greatly contributed to
the improved AV. FY 2020-21 increase was 6.5%, mostly attributable to the improved housing
market. Azusa’s AV is expected to continue to rise with the construction and sale of
aforementioned condominium and townhome developments in several smaller vacant lots in the
City.
Over the next five years, the General Fund operating budget is estimated to remain steady. A major
financial management tool the City uses is its General Fund Reserve Policy (discussed in the next
section). Each budget year, Staff recommends the City Council reaffirm or update the reserve
policy given current financial forecasts. FY 2020/21 resulted in ending General Fund reserves of
$29.1 million, of which $13.5 million was designated reserves. The City is also slated to receive
$12.0 million in American Rescue Plan Act (ARPA) funds. Including the first $6 million ARPA
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tranche received in FY 2021-22, total General Fund reserves is expected to be over $35 million,
nearly $16 million above the FY 2021-22 $19.9 million reserves target. A strong General Fund
financial position allows the City to invest in major infrastructure improvements and enhance
community services and local business support.
RELEVANT FINANCIAL POLICIES
The City of Azusa has a comprehensive set of adopted financial policies and/or ordinances.
Finance staff regularly reviews financial policy recommendations of the Government Finance
Officers Association (GFOA) who recommends steps to consider when making effective financial
policies including: (1) scope, (2) development, (3) design, (4) presentation, and (5) review. Various
adopted City policies relate to budgeting, debt, interfund loans, internal controls, and fiscal
sustainability to guide the City to continued financial health. These policies are reviewed annually
and updated as needed.
The City’s budget policy requires a balanced budget, meaning expenditures should not exceed
revenues. 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.
In addition to a budget policy, the City has a General Fund Reserve Policy which is used as a
benchmark tool to assess financial performance. The Reserve Policy consists of four categories to
internally restrict funds in order to address some of the City’s long-term financial liabilities and
potential areas of financial exposure, such as claims expenses, aged infrastructure, and rising
retiree benefits. In total, the designated reserves target is set at $19.9 million for the FY 2021-22
revised budget year. City Council authorization is required for use of these reserves. Table 1 briefly
outlines the purpose of each reserve category:
Table 1 – General Fund Internally Restricted Reserves
Reserve Category
Purpose
Current
Reserve Level
Budget Stabilization
and Catastrophic Event
Reserve
To mitigate costs due to annual budget revenue
shortfalls as a result of changes in economic
environment and/or one-time expenditures and
unforeseen emergencies or catastrophic events
25% of budget or
$13.4 million
Capital Assets &
Infrastructure
Replacement Reserve
To use for replacement of capital assets and
infrastructure such as facilities, IT upgrades, and fleet
operations
$2.0 million
Insurance Reserve To fund unanticipated liability and worker’s
compensation claims up to City’s $250K SIR per claim
$2.5 million
Retiree Benefits To mitigate impacts on City’s future budgets due to
rising retiree benefit costs (pension and medical) and
reduce long-term liabilities
$2.0 million
Total Internally Restricted Reserves $19.9 million
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
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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 Securiti es, 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
In 2014, the City Council/Utility Board had to approve an enterprise loan to the General Fund to
address a $4.0 million cash deficit. While subsequent economic improvements and one-time
revenue generating transactions gradually improved the City’s General Fund cash position, the
City’s annual budget remained structurally imbalanced (i.e. annual expenditures outpaced
incoming revenues). Thus, reserves from one-time revenues were used to bridge annual deficits.
In ordinary times, the City’s budget policy discourages use of one-time revenues for ongoing
operating costs. Though the City’s financial position was gradually improving, beginning in 2018,
Staff began an in depth, exhaustive fiscal sustainability assessment in an effort to create long-term
budget stability and to continue to address the needs of the growing Azusa Community. The
assessment focused on four main areas:
1. Reviewing existing contracts and franchise agreements to ensure the City is capturing
all contractual obligations
2. Identifying contracts and franchise agreements to potentially renegotiate
3. Examining areas of organizational efficiency opportunities
4. Exploring extraordinary measures to generate additional revenues
Consequently, Council heard presentations from Staff and took several actions to improve the
City’s financial position. Notable actions included:
Approving staffing consolidations for cost savings and efficiencies
Approving incremental increases on taxes assessed on hazardous waste collectors
Authorizing discussions to renegotiate other franchise agreements for revenue
enhancement
Approving extraordinary ballot measures which voters passed to enhance revenues
Using cash on hand and issuing Pension Obligation Bonds to refinance the City’s growing
pension liabilities
Negotiating labor contract provisions to reduce the City’s growing OPEB liability
Altogether, these actions increased annual revenues by more than $6.5 million. Coupled with better
than anticipated revenue collections throughout the Covid-19 pandemic, the increased revenues
positively affected the City’s budget and reversed projected $3.3 million annual deficits to
surpluses and a better cash position. Additionally, collections of one-time revenues over the years
allowed the City to set aside accumulated General Fund reserves as “rainy day” funds for
catastrophic events, unforeseen capital and infrastructure needs, retiree cost increases, and
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unanticipated liability and worker’s compensation claims expenses. Collectively, prudent actions
by Council not only balanced the City’s annual budget and allowed the set aside of designated
reserves, but also allows the City to consider ways to enhance community amenities, programs,
services, and events.
While the City’s financial position is strong, there are areas in which the City must continue to be
diligent in addressing to safeguard revenues and maintain a thriving community. Some key areas
of focus include:
Addressing post COVID-19 issues such as high unemployment rates, serving vulnerable
populations, and supporting business regrowth
Preparing for a potential recession
Addressing the homelessness crisis by creating viable shelter options and providing
mental health and other wellness services
Opposing legislative mandates that pose a threat to local revenues
Managing costly unfunded long-term retirement debt
A few of these areas are discussed in more depth below.
Unfunded Retirement Liabilities
The General Fund’s current Reserve Policy designates $2 million for retirement liabilities (pension
and OPEB) to address unexpected payments above the City’s annual budget for these programs.
In addition to maintaining the $2.0 million in designated reserves, Council authorized an
additional $2.0 million from the General Fund’s excess reserves to prefund and continue to payoff
existing debt.
Other Post-Employment Benefits (OPEB)
Due to the implementation of GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (GASB 75), the City’s Fiscal Year End June 30, 2021
financial statements will reflect a $ 60.6 million OPEB liability, a decrease of $3.1 million from prior
year, but still up by $19.1 million from the $41.2 million FY 2017/18 liability. Participation in
CalPERS health plan programs contractually obligates the City to pay at least the PEMHCA
minimum cost for each retiree (currently $143 per month per retiree). Furthermore, the City
continues to offer 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 expectancies.
The City has a “pay-go” system for OPEB obligations. Meaning, the City pays retiree medical costs
annually as incurred. Current year payments are in excess of $1.5 million and those annual
payment obligations are expected to increase to $3.8 million over the next 25 years.
To mitigate future costs, the City established a Health Reimbursement Arrangement (HRA) for its
Executive Staff and all eight (8) of the City’s bargaining groups to replace the lifetime medical
benefit for new hires. This action has a positive impact on reducing the City’s OPEB liability, but
not enough of an impact where other reduction strategies should not be considered. The best option
to mitigate future increases is to establish an interest bearing OPEB trust account.
Establishing an OPEB trust is a commitment by the City to set aside funds strictly for the purpose
of making future retiree medical payments. Funding a trust has multiple benefits: 1) funds in trust
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will likely yield higher interest earnings than maintaining cash in the City’s normal investment
accounts; 2) funds in trust can be used as a budget stabilization tool for future unexpected spikes
in annual retiree medical payment obligations, or in times where the City may need budget relief;
and 3) funding a trust instantly reduces the OPEB liability in the City’s financial statements and
boosts the City’s credit worthiness.
Chart 1 provides an illustration of expected reductions in the City’s OPEB payment obligations in
future years if a trust account was funded at just over $1 million per year over the next 25 years.
Chart 1 - Illustration of Projected $1 Million Annual Contribution
(6.00% Trust Earnings/Discount Rate)
Contributing just over $1 million annually to a trust, for the next 25 years, would drop the City’s
future payment obligations back current ranges or about 300% by end of that 25-year period.
Pension
The City participates in the California Public Employees’ Retirement System (CalPERS) retirement
program (Plan). The CalPERS Board of Administration has made several decisions over the year
to mitigate the eroded value of the pension plan from years of market turmoil, especially during
the 2008/2009 recession. Such actions included lowering the discount rate/expected return rate,
reducing the amortization and smoothing period to pay for gains and losses, and the latest change
was adding a tired system where the discount rate would further by lowered following years of
significant market returns, meaning plan participants would not have the benefit of immediately
realizing those significant gains.
There are two components to the payments the City makes to CalPERS. One component is the
normal cost; this is a percentage of persable payroll dollars. The second component are lump-sum
payments made towards the City’s unfunded accrued liability (UAL). Considering the annual
budget impact of the actions taken by the CalPERS Board, the City took several actions in recent
years to mitigate rising costs. Through successful labor negotiations, City employees agreed to
contribute 7.0-9.0% of the employers CalPERS share, which reduces annual normal cost payments,
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and in 2020, the City paid off its $80.3 million UAL debt by using $10.7 million of Enterprise Fund
cash on-hand and issuing $70 million in Pension Obligation Bonds to refinance the debt at a much
lower interest rate.
Although the City paid off its debt to CalPERS, each fiscal year the Plan may have new layers of
debt. Per the City’s latest CalPERS valuation reports, the Plan would have to have a minimum of a
12% return each year to avoid any new layers of UAL. While FY 2020/21 returns came in high at
over 21%, Chart 2 provides an illustration of CalPERS’ investment returns over the past 20 years,
showing average returns over the last rolling 5-years were less than 10%.
Chart 2 – CalPERS 20-Year Historical Investment Returns (2001-2020)
Table 2 provides a summary of the City’s new layer of debt given CalPERS low 4.7% rate of return
in FY 2019/20 and the annual payments required in the next six years towards that debt.
Table 2 – Possible Uses for Undesignated Reserves
Council is expected to adopt a formal long-term debt policy by end of FY 2021/22 and establish
and OPEB trust to continue to manage costly pension and medical costs.
Required
Contribution
Plan Fiscal Year: 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28
Current
Amortization
Balance
Normal Cost %9.78% 9.60% 9.50% 9.30% 9.20% 9.10%
UAL Payment 90,947$ 163,000$ 236,000$ 308,000$ 381,000$ 381,000$ 3,517,610$
Normal Cost %38.32% 28.30% 28.30% 28.30% 28.30% 28.30%
UAL Payment 101,400$ 159,000$ 216,000$ 274,000$ 331,000$ 331,000$ 3,111,158$
Normal Cost %13.66% 13.70% 13.70% 13.70% 13.70% 13.70%
UAL Payment 1,015$ 1,700$ 2,300$ 2,900$ 3,600$ 3,600$ 33,313$
Normal Cost %26.20% 26.20% 26.20% 26.20% 26.20% 26.20%
UAL Payment 1,137$ 1,900$ 2,600$ 3,300$ 4,000$ 4,000$ 37,531$
194,499$ 325,600$ 456,900$ 588,200$ 719,600$ 719,600$ 6,699,612$
Projected Future Employer Contributions (Assumes 7.00% Return for Fiscal Year 2020‐21)
Misc Classic/
PEPRA
Total UAL Payment
Safety Classic
Safety PEPRA
Safety
Second‐Tier
Finance ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
ix
Legislative Mandates
The American Rescue Plan Act (ARPA) became law on March 11, 2021. For the first time, all US
municipal governments are entitled to a direct, non-competitive federal formula grant from the US
Treasury Department. The Coronavirus State and Local Fiscal Recovery Fund (CSLFR) was
included as part of the American Rescue Plan specifically for the State and Local governments. At
the local level, the cities are categorized either as Metropolitan Cities with population greater than
50,000 or Non-Entitlement Units of government (NEUs) with a population under 50,000. The
metropolitan cities receive direct allocation from the US Treasury, while the NEUs receive its
allocation from the State Department of Finance. The City of Azusa was awarded an allocation
amount of $11,954,843, and of that, the State has already distributed 50% or $5,977,422 to the City
on July 13, 2021. The other 50% or remaining balance of $5,977,421 is anticipated to be distributed
one year from the first distribution date or around July 13, 2022.
Following issuance of ARPA final rules, in February 2022, Council authorized the City to accept
the allotted ARPA funding and authorized the use of the standard allowance of $10,000,000 for the
eligible use category of providing government services. This action frees up General Fund reserves
to be used for significant investments in the City’s public facilities, such as the Library, Senior
Center, Downtown corridor and the Memorial Park recreation center. Council authorized use of
the remaining $1,954,843 of the CSLFR for matters related to addressing impacts experienced by
the local unsheltered community.
Various recent legislative proposals and Congressional initiatives, including the Taxpayer
Protection and Government Accountability Act Initiative (AG#21-0042A1) and proposal to
suspend the Gas Tax through calendar year 2022, is a major focus of the City currently. Although
the current General Fund financial position is healthy, these legislative actions if passed threaten
the City’s various revenue sources and financial health. Should these initiatives come to fruition,
the City will have to rely on available fund balance to offset any significant revenue losses which
could adversely impact services. The City provides numerous services to the Azusa community
including 24-hour police and fire protection, parks and tree maintenance, road and sidewalk
maintenance, graffiti removal, community library system, a well-planned zoned community, etc.,
all of which requires a lot of resources. Staff will actively advocate against the proposed initiatives
and continue to monitor the development of any major milestones and keep the Council updated
on any threats to Azusa’s local revenues.
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. The City has requested of the DOF
reinstatement of other loans between the City and the SA, but was denied. It is unlikely the DOF
will approve any future requests for reinstatement, so the FY 2021/22 financial statements will
reflect write-offs of the disallowed loans.
Despite the dissolution of the Redevelopment Agency, legislative mandates threating local
revenues, and increasing retirement and medical costs, the City continues to pursue economic
development to increase the City’s tax base, diversify revenue streams, and create and retain jobs
to ensure continued financial solvency. Pursuing smart development opportunities as a
mechanism to help revitalize the City is crucial to the City’s long-term economic health. Financial
Finance ▪ 213 E. Foothill Blvd. ▪ P.O. Box 1395 ▪ Azusa, CA 91702-1395
Tel: (626) 812-5203 ▪ FAX (626) 334-6358
x
policies will continue to be established and implemented to guide policy decisions on how to best
utilize the City’s resources and maintain a healthy General Fund.
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, 2020 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 ACFR continues to
meet program requirements and the City will submit to the GFOA to determine its eligibility for
another award.
ACKNOWLEDGMENTS
Amidst challenging and unconventional times during a world-wide pandemic, Azusa City Staff
demonstrated the continued dedication and efforts in the development and preparation of this
ACFR. All City departments played a key role in assuring continued service for the Azusa
Community and provided key data within this report. Most notably, this report is made possible
due to the year-round diligence of the City’s Finance Staff (see page 200) and the Badawi &
Associates Team.
A special thanks to, City Manager Sergio Gonzalez, for his continued focus and leadership in
advancing the goals and priorities set by the Mayor and City Council to continue providing the
highest quality services to Azusa residents and businesses, while effectively managing the City’s
long-term financial sustainability.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Azusa’s finances for
all those with an interest in the agency’s finances and overall fiscal condition. If you have questions
concerning any of the information provided in this report or need additional financial information,
contact the City’s Finance office by calling (626) 812-5203 or by directing correspondence to City
Hall- Finance, P.O. Box 1395, 213 East Foothill Blvd., Azusa, California 91702-1395.
Respectfully Submitted,
Talika M. Johnson
Director of Administrative Services
City of Azusa
ELECTED OFFICIALS AND DEPARTMENT HEADS
213 E. Foothill Boulevard
Azusa, CA 91702
(626) 812-5200
Fax (626) 334-6358
www.AzusaCA.gov
ELECTED OFFICIALS TITLE TERM EXPIRATION
Jeffrey L. Cornejo Jr. City Clerk March 2022
Art Vasquez City Treasurer March 2022
Robert Gonzales Mayor March 2022
Jesse Avila Jr. Mayor Pro-Tem March 2024
Uriel E. Macias Councilmember March 2024
Edward J. Alvarez Councilmember March 2022
Andrew N. Mendez Councilmember March 2022
DEPARTMENT HEADS TITLE PHONE NUMBER
Sergio Gonzalez
Nico DeAnda-Scaia
City Manager
Deputy City Manager
626-812-5238
626-812-5178
Robert Delgadillo Director of Public Works/ City Engineer 626-812-5248
Matt Marquez Director of Economic & Community Development 626-812-5236
Mike Bertelsen Chief of Police 626-812-3250
Ann Graf Director of Information Technology and Library 626-812-5024/5277
Miki Carpenter Director of Community Resources 626-812-5220
Manny Robledo Director of Utilities 626-812-5219
Talika M. Johnson Director of Administrative Services 626-812-5203/5183
Daryl L. Osby Fire Chief 626-974-8371
Marco Martinez City Attorney (Best, Best, & Krieger) 949-263-2603
xi
Citizens of Azusa
Mayor & City Council
Utility Board
Successor Agency Board
City Manager
Administration
City
Manager's
Office
Neighborhood
Services
City Clerk
Administrative
Services
Accounting
Purchasing
Community
Development
Districts
Debt
Service
Citywide
Services
Employee
Benefits
Personnel
Risk
Management
Economic and
Community
Development
Building
Community
Improvement
Planning
Successor
Agency
Economic
Development
Promenade
Information
Technology
City
Services
Sewer
L&W
Services
Light &
Water
Utilities
Consumer
Services
Electric
Water
Public
Benefit
Climate
Balancing
Refuse
Public Safety
Police
Emergency
Services
Fire
Safety
Contract
Services
Police IT
Public Works
Engineering
Facilities
Graffiti
Abatement
Streets/
Sidewalk/
Sewer
Maintenance
Parks
Operations
Community
Resources
Recreation
Senior
Programs
Senior
Nutrition
Transportation
Library
Library General
Services
Youth Services
Elected City
Clerk
Elected City
Treasury City Attorney Advisory Board
& Commissions
City of Azusa
Organizational Chart
xii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Azusa
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
xiii
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xiv
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, 2021, 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, 2021, 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 106-118, 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 167,
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 167 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 167 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 April 28,
2022, 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 & Associates, CPAs
Berkeley, California
April 28, 2022
4
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City of Azusa
Management’s Discussion and Analysis
June 30, 2021
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, 2021. 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 x 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 2021 by $99,545,029 (net position).
Total City assets of $307,955,034 include $165,450,892 or 53.7% of non-current assets attributed
to capital assets, net of depreciation.
Total City liabilities of $312,648,823 include $279,905,665 or 89.5% of long-term liabilities
attributed mainly to tax allocation bonds, pension obligation bonds, certificates of
participation, and other post-employment liabilities.
As of June 30, 2021, the City’s governmental funds reported combined fund balances of
$57,001,798.
At the end of the current fiscal year, the total fund balance for the General Fund was increased
by $2,762,320 (8.1%) (including prior year restatements) to $36,881,139.
Total General Fund revenues received for the year were $52,356,060 and total General Fund
expenditures for the year were $36,984,443, an excess of revenues over expenditures
amounting to $15,371,617 (29.4%). This does not include capital lease financing, transfers, and
proceeds from the 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.
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
5
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
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.
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
6
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
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
Information Technology Services activities. 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.
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.
4) Statistical section. This part of the financial report is not required but 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.
7
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
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, 2021, the City’s assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $99,545,029, representing an increase of $9,896,403 (9.9%) from
the prior year. The increase is mainly attributed to the increases in deferred outflows of resources
related to pensions and investments in capital assets, offset by decreases in pooled cash and
investments, accounts receivable, other postemployment benefits (OPEB) liability, compensated
absences, and claims and judgements payable.
The largest portion of the net position reflects the City’s $112,577,359 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, 2021, the restricted assets were $23,409,071 of the total net position, of this amount, $8,248,127
is restricted for community development projects such as transportation projects and $7,874,867
for capital projects such as street repair and maintenance, $6,648,838 is for debt service related
activities, and $637,239 for public safety related grants and initiatives.
2021 2020 2021 2020 2021 2020
Current and other assets 65,393,020$ 60,681,535$ 77,101,122$ 89,488,443$ 142,494,142$ 150,169,978$
Capital assets, net 44,508,299 38,610,254 120,952,593 117,040,147 165,460,892 155,650,401
Total assets 109,901,319 99,291,789 198,053,715 206,528,590 307,955,034 305,820,379
Deferred charge on refunding - - 1,247,997 1,333,974 1,247,997 1,333,974
Deferred OPEB related items 11,897,616 14,223,106 626,190 748,585 12,523,806 14,971,691
Deferred pension related items 83,913,202 12,676,775 14,840,192 2,813,436 98,753,394 15,490,211
Total deferred outflows of resources 95,810,818 26,899,881 16,714,379 4,895,995 112,525,197 31,795,876
Current liabilities 14,031,515 14,252,132 18,711,743 17,536,771 32,743,258 31,788,903
Long-term liabilities 207,603,511 138,385,013 72,302,154 74,382,945 279,905,665 212,767,958
Total liabilities 221,635,026 152,637,145 91,013,897 91,919,716 312,648,923 244,556,861
Deferred pension related items 2,340,776 2,997,846 650,071 412,922 2,990,847 3,410,768
Deferred OPEB related items 5,030,660 -264,772 - 5,295,432 -
Total deferred inflows of resources 7,371,436 2,997,846 914,843 412,922 8,286,279 3,410,768
Net investment in capital assets 42,264,754 37,408,295 70,312,605 62,764,524 112,577,359 100,172,819
Restricted 17,295,606 15,197,634 6,113,465 16,991,779 23,409,071 32,189,413
Unrestricted (82,854,685) (82,049,250) 46,413,284 39,335,644 (36,441,401) (42,713,606)
Total net position (deficits)(23,294,325)$ (29,443,321)$ 122,839,354$ 119,091,947$ 99,545,029$ 89,648,626$
Summary of Net Position (Deficits) for the year ended June 30
Governmental Business Type
Activities Activities Total
8
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
At June 30, 2021, the unrestricted net position was a negative $36,441,401. The negative net
position is largely due to the reporting of the City’s Pension and OPEB liabilities required as part
of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement
No. 75, Accounting and Financial Reporting for Postemployment Benefits Pension Other Than Pensions
(GASB 75). The City’s $60.6 million OPEB liability decreased by $3.2 million compared to fiscal
year 2019-20. Reporting of these liabilities improve information provided by state and local
governmental employers about financial support for OPEB provided to other entities. In addition
to accounting for OPEB and implementing programs to reduce the City’s liability, the City paid
off its $80 million unfunded accrued pension liability with CalPERS using $10.7 million in
Enterprise Fund cash on hand and issuing $70.1 million in Pension Obligation Bonds. The
payment is currently reported as a deferred outflow of resources and not applied against the
City’s net pension liability because it is measured as of June 30, 2020. 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 2019-20 and 2020-21 (in millions):
Governmental activities. The condensed summary of activities of the City’s governmental
activities for the year ended June 30, 2021 shows total net position is a negative $23,300,403 an
increase of $6,142,918 (20.9%) in total net position from prior year as restated and primarily
attributable to increases in cash and investments and investments in capital infrastructure.
9
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Business type activities. Business type activities net position totaled $122,839,354, an increase of
$3,747,407 (3.1%) from the prior year as restated and attributable to overall positive operating
results, specifically in the Water fund.
The City’s total revenues were $141,339,518 and the costs of all programs and services were
$130,997,754. Fiscal year 2020-21 revenues increased by $7,529,554 (5.6%) and expenses decreased
by $3,087,385 (2.4%) from prior year. Highlights of key revenue factors and program costs for
governmental and business type activities are noted later in this report.
2021 2020 2021 2020 2021 2020
Program Revenues:
Charges for services 11,744,877$ 13,744,806$ 75,214,145$ 71,736,440$ 86,959,022$ 85,481,246$
Operating contributions and grants 8,917,365 7,986,715 740,284 763,180 9,657,649 8,749,895
Capital contributions and grants 2,013,344 2,424,903 - - 2,013,344 2,424,903
General Revenues:
Taxes 42,720,694 33,986,373 - - 42,720,694 33,986,373
Investment earnings (372,227) 859,705 240,751 1,221,072 (131,476) 2,080,777
Miscellaneous 120,285 1,086,770 - - 120,285 1,086,770
Total Revenues 65,144,338 60,089,272 76,195,180 73,720,692 141,339,518 133,809,964
Expenses:
General Government 12,007,362 14,858,996 - - 12,007,362 14,858,996
Public Safety 30,091,441 33,034,073 - - 30,091,441 33,034,073
Community Development 5,718,091 3,892,609 - - 5,718,091 3,892,609
Parks and Recreation 5,580,230 5,077,503 - - 5,580,230 5,077,503
Public Works 6,648,325 9,015,108 - - 6,648,325 9,015,108
Interest on long-term debt 145,134 225,826 - - 145,134 225,826
Water - - 23,140,183 24,608,822 23,140,183 24,608,822
Light - - 41,202,365 36,579,394 41,202,365 36,579,394
Sewer/Wastewater - - 2,430,044 2,705,943 2,430,044 2,705,943
Refuse Contract - - 4,034,579 4,086,865 4,034,579 4,086,865
Total Expenses 60,190,583 66,104,115 70,807,171 67,981,024 130,997,754 134,085,139
Increase/(decrease) in net position
before transfers 4,953,755 (6,014,843) 5,388,009 5,739,668 10,341,764 (275,175)
Transfers 1,581,919 2,607,313 (1,581,919) (2,607,313) - -
Change in Net Position 6,535,674 (3,407,530) 3,806,090 3,132,355 10,341,764 (275,175)
Net Position (Deficits) - Beginning (29,829,999) (26,035,791) 119,033,264 115,959,592 89,203,265 89,923,801
Net Position (Deficits) - Ending (23,294,325)$ (29,443,321)$ 122,839,354$ 119,091,947$ 99,545,029$ 89,648,626$
Summary of Changes in Net Position (Deficits) for the year ended June 30
Governmental Bus iness Type
Activities Activities Total
10
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
In comparison to prior fiscal year, total Governmental revenues increased by $5,055,066 (8.4%).
Key elements of this year’s summary of activities are as follows:
Charges for services decreased by $1,999,929 (14.55%), mainly attributable to backlogged
fire safety service fees of $1.1 million collected in FY 2019-20 and no FY 2020-21 transfers
of interest earnings to the Utility Mitigation fund from the Utility funds since certain
financial metrics were not met.
Property tax revenue of $14,418,224 increased by $1,898,071 (15.2%) primarily due to
increased assessed value of homes.
Contributions and Grants of $10,930,709 increased by $519,091 (5.0%) due to higher
reportable sales transactions by businesses that have franchise agreements with the City.
Investment earnings and miscellaneous revenue decreased by $2,198,417 (112%)
primarily due to the decreases in the interest rates and fair market value of investments.
Sales tax revenue of $12,520,285 increased by $5,702,328 (83.6%) due to the July 1, 2020
implementation of Measure Z, a voter approved 3/4₵ transaction and use tax and a stable
business economy within the City and increased sale transactions.
11
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
In comparison to prior fiscal year, total Governmental Activities decreased by $5,913,532 (8.9%).
Key elements of this year’s summary of activities are:
General Government expenses decreased $2,851,634 (19.2%) compared to prior year. The
decrease is a result of pay-off of high cost worker’s compensation and general liability
claims in FY 2019-20 and curtailed staffing and services throughout the COVID-19
pandemic.
Public Safety expenses decreased by $2,942,632 (8.9%) mainly due to netting fire safety fee
collections over $864,000 with expenditures in FY 2020-21 to align with the net fire
contract budget, one-time purchase of a $298,000 armored vehicle and other capital
purchases in FY 2019-20, reduced crossing guard services due to school closures during
the height of the COVID-19 pandemic, and reduced human services costs which inflated
in FY 2020-21.
Public Works expensed decreased by $2,366,783 (26.3%) due to lower repair and
maintenance expense and lower pension expense compared to amounts in FY 2020-21
12
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
The decrease was offset by increases in:
Community Development $1,825,482 (46.9%) from planning, inspection and permitting
consulting fees, capital improvement of the Community Development building, higher
legal fees for a major public nuisance project, and required planning studies.
Parks and Recreation $ 502,727 (9.9%) for increased patrol and cleaning of parks facilities
during the COVID-19 pandemic and one-time fencing and park equipment purchases.
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 $57,001,798, an increase of $3,912,121 (7.4%) in comparison with the prior year’s
revised fund balance. The increase is attributed to positive operating results (revenues exceeding
expenditures).
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2020-21, its
ending fund balance of $36,881,139 increased by $2,762,320 (8.1%) from prior year as restated.
Revenues from taxes, were higher than last year by nearly $8,184,426 (22.8%) attributable to
higher assessed property values, increased activities from developed businesses. Overall, General
Fund expenditures increased by $1,867,294 (5.4%) primarily as a result of investment in capital
infrastructure and equipment, which became possible with the improved fiscal position of the
General Fund.
Non-Major Governmental Funds consist of 23 special revenue, capital project, and debt service
funds. In total, these funds reported a combined ending 2020-21 fund balance of $20,120,659, an
increase of $1,478,776 (7.9%) from prior year as restated. Activities by fund can be found starting
on page 122 of this report.
Proprietary funds. The City’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
Unrestricted net position of the City’s Enterprise funds (Business-Type Activities) at the end of
the year amounted to $53,172,509. Total unrestricted net position increased by $7,603,319 (16.69%)
and total net position increased by $4,309,763 (3.0%) from the previous fiscal year as restated.
13
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Unrestricted net position of the City’s Water Utility at the end of the year amounted to
$19,244,499, a decrease of $312,766 (1.6%). Water operating revenues, including transfers, were
up by $2,585,646 (10.6%) and expenses, excluding transfers, decreased by $1,927,630, (8.4%). The
increase in revenues is largely due to $2,573,172 in increased water supply costs passed down to
customers through rates, although overall consumption was down as a result of the COVID-19
pandemic (discussed in Note 18 of the Notes to the Basic Financial Statements) and conservation
efforts. Conversely, expenses increased mainly due to higher source of water supply costs.
Unrestricted net position of the City’s Light Utility at the end of the year amounted to $28,256,623.
Total unrestricted net position increased by $7,635,244 (37.0%) and total net position decreased
by $438,829 (0.7%) from the previous fiscal year as restated. Operating revenues, including
transfers, increased by $666,020 (1.7%) and expenses, including transfers, decreased by $4,722,408
(14.4%), from prior year. The increase in revenues primarily reflects a decrease in sales and
services, interdepartmental and miscellaneous charges in the commercial sector in fiscal year
2020-21 as a result of the COVID-19 pandemic. The increase in expenses primarily reflects higher
prices for electricity commodity.
The following chart highlights total revenue and total expenses, including transfers, for each of
the business type activities for fiscal year end June 30, 2021:
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
Water Light Sewer/
Wastewater Refuse Contract
Revenue $27.0 $40.7 $3.5 $4.9
Expenses $23.1 $41.1 $2.6 $4.9
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
Business Type Activities - Revenues and
Expenses for the year ended June 30
14
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Revenue forecasts were conservative in light of the ongoing COVID-19 pandemic. However,
revenue collections came in higher than budgeted $4,395,495. The City’s diverse revenue sources
and ongoing business support throughout the pandemic largely contributed to revenue growth
and stability.
The final amended expenditure budget, excluding transfers out, was more than the original
adopted budget by $38,905. Salary savings as a result of vacant positions and timing of capital
improvement projects were the main drivers of actuals being $2,896,487 (7.3%) lower than final
budget. Transfers out were higher than budgeted by $8,732,866 (47.5%) due to clearing out
negative fund balances in internal service funds supported mostly by the General Fund.
Actuals
Actual Over/(Under)
Original Final Amounts Final Budget
Revenues:
Taxes 36,364,999$ 39,225,729$ 44,048,688$ 4,822,959$
Charges for services 1,653,149 1,571,149 1,964,158 393,009
Assessments 3,971,446 3,971,446 3,341,604 (629,842)
Other revenue 3,143,840 73,271,114 73,080,483 (190,631)
Total revenue 45,133,434 118,039,438 122,434,933 4,395,495
Expenditures:
Operations 39,092,594 39,059,182 36,187,829 (2,871,353)
Capital Outlay 83,985 335,810 261,826 (73,984)
Debt Service 665,446 485,938 534,788 48,850
Total expenditures 39,842,025 39,880,930 36,984,443 (2,896,487)
Excess/(Deficiency) of revenues
over expenditures 5,291,409 78,158,508 85,450,490 7,291,982
Other Financing Sources/(Uses):
Transfers in 1,548,097 1,548,097 1,548,097 -
Transfers out 7,917,121 5,920,627 14,653,493 (8,732,866)
Payment for CalPERS unfunded liability - 69,582,774 69,582,774 -
Total other financing sources (uses) (6,369,024) (73,955,304) (82,688,170) (8,732,866)
Net change in fund balance (1,077,615) 4,203,204 2,762,320 (1,440,884)
Fund balance beginning of year 34,118,819 34,118,819 34,118,819 -
Fund balance end of year 33,041,204$ 38,322,023$ 36,881,139$ (1,440,884)$
General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2021
Budgeted Amounts
15
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Capital Asset and Debt Administration
Capital assets. The City’s net investment in capital assets for its governmental and business type
activities as of June 30, 2021 amounted to $165,460,892. This investment includes land,
construction in progress, land improvements, buildings and structures, machinery and
equipment, automotive equipment, and infrastructure. Investment in the City’s streets and traffic
infrastructure was
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 $292,396,762. Of this amount, $215,359,089 is a liability of the Governmental
Activities and $77,037,673 is a liability of the Business Type Activities.
Additional information on the City’s long-term debt, Pension liability, and OPEB liability can be
found in Notes 5, 6, and 8, of the Notes to the Basic Financial Statements.
2021 2020 2021 2020 2021 2020
Land 3,562,016$ 3,562,016$ 2,988,973$ 2,988,973$ 6,550,989$ 6,550,989$
Construction in Progress 658,340 3,443,308 13,946,494 7,664,943 14,604,834 11,108,251
Land Improvements 982,395 722,362 209,349 228,969 1,191,744 951,331
Buildings and Structures 6,345,809 6,414,172 11,091,125 11,096,833 17,436,934 17,511,005
Machinery and Equipmen 1,032,414 919,770 1,783,850 1,878,263 2,816,264 2,798,033
Automotive Equipment 1,277,979 978,738 1,057,700 473,210 2,335,679 1,451,948
Infrastructure 30,649,346 22,569,888 89,875,102 92,708,956 120,524,448 115,278,844
Total 44,508,299$ 38,610,254$ 120,952,593$ 117,040,147$ 165,460,892$ 155,650,401$
Capital Assets for the year ended June 30
(Net of Accumulated Depreciation)
Governmental Business Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Employee Leave Benefits 3,627,981$ 3,655,212$ 1,669,226$ 1,489,703$ 5,297,207$ 5,144,915$
Net OPEB Liability 57,597,232 60,597,752 3,031,433 3,189,355 60,628,665 63,787,107
Net Pension Liability 69,081,289 63,503,513 20,449,029 18,597,049 89,530,318 82,100,562
Advance from the Successor Agency 8,208,833 8,208,833 - - 8,208,833 8,208,833
2003 COPS - 845,000 - - - 845,000
2011 Sewer Installment Loan - - 2,370,000 2,790,000 2,370,000 2,790,000
2012 Electric Refunding Bond - - 2,710,000 3,555,000 2,710,000 3,555,000
2012 Water Refunding Bonds - - 2,730,000 3,565,000 2,730,000 3,565,000
2015 Water Refunding Bonds - - 41,475,000 42,850,000 41,475,000 42,850,000
2016 T.R.I.P Installment Sale 3,055,000 3,170,000 - 3,055,000 3,170,000
2020 Pension Obligation Bonds 70,075,000 - - - 70,075,000 -
Claims and Judgments Payable 3,563,215 4,995,341 - - 3,563,215 4,995,341
Capital Lease - 40,943 - - - 40,943
Unamortized Premium/(Discount) 150,539 153,404 2,602,985 2,849,597 2,753,524 3,003,001
Total 215,359,089$ 145,169,998$ 77,037,673$ 78,885,704$ 292,396,762$ 224,055,702$
Outstanding Debt for the year ended June 30
Governmental Business Type
Activities Activities Total
16
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Economic Factors and Next Year’s Budgets and Rates
In 2014, the City Council/Utility Board approved an enterprise fund loan to address the General
Fund’s $4.0 million cash deficit. While subsequent economic improvements and one-time revenue
generating transactions gradually improved the City’s General Fund cash position, the City’s
annual budget remained structurally imbalanced (i.e. annual expenditures outpaced incoming
revenues). Although the City’s budget policy discourages use of one-time revenues for ongoing
operating costs, to maintain service levels, reserves from one-time revenues were used in some
recent budget years to bridge annual deficits.
Though the City’s financial position was gradually improving, beginning in 2018, Council took
several actions as part of an in depth, exhaustive Fiscal Sustainability Assessment (“Assessment”)
in an effort to create long-term budget stability and to continue to address the needs of the growing
Azusa Community. The assessment focused on four main areas: 1) Reviewing existing contracts
and franchise agreements to ensure the City is capturing all contractual obligations; 2) Identifying
contracts and franchise agreements to potentially renegotiate; 3) Examining areas of organizational
efficiency opportunities; and 4) Exploring extraordinary measures to generate additional revenues.
Notable actions from the Assessment included: approving staffing consolidations for cost savings
and efficiencies; approving incremental increases on taxes assessed on hazardous waste
collections; authorizing discussions to renegotiate other franchise agreements for revenue
enhancement; approving extraordinary ballot measures which voters passed to enhance revenues;
using cash on hand and issuing Pension Obligation Bonds to refinance the City’s growing pension
liabilities; negotiating labor contract provisions to reduce the City’s growing OPEB liability.
Altogether, these actions coupled with better than anticipated revenue collections throughout the
COVID-19 pandemic, positively affected the City’s budget and reversed projected annual deficits
to surpluses and a better cash position.
Additionally, collections of one-time revenues over the years allowed the Council to set aside
accumulated General Fund reserves as “rainy day” funds for catastrophic events, unforeseen
capital and infrastructure needs, retiree related cost increases, and unanticipated liability and
worker’s compensation claims expenses. For Fiscal Year 2021-22, designated reserves for
continued risk mitigation were set at: 1) Budget Stabilization and Catastrophic Event (25% of
budget or $13.0 million of the FY 2021-22 revised budget); 2) Capital and Infrastructure
Replacement ($2.0 million); 3) Insurance ($2.5 million); and 4) Retiree Benefits ($2.0 million). City
Council authorization is required for use of these reserves. Further, the City has been awarded
approximately $12 million in American Rescue Plan Act (ARPA) funds with 50% disbursement
in July 2021 and the remaining 50% disbursement slated for July 2022.
Collectively, actions taken by Council not only balanced the City’s annual budget and increased
designated reserves, but also allows the Council to consider ways to enhance community
amenities, programs, services, and events for upcoming budget years. Aside from General Fund
operations, Enterprise Fund operations play a key role in the City’s overall financial position.
Utility operations are unique, capital intensive, and require periodic review of rates to maintain
debt covenant financial metrics to support operations and capital needs. Comprehensive rates
studies for utilities operations are at least five years old, and so upcoming budget considerations
will include rate studies components.
17
City of Azusa
Management’s Discussion and Analysis
June 30, 2021
Various legislative proposals and recent Congressional initiatives including the Taxpayer
Protection and Government Accountability Act Initiative (AG#21-0042A1) and proposal to
suspend the Gas Tax through calendar year 2022 is a major focus for the City currently. Although
the current General Fund financial position is healthy, these legislative actions if passed threaten
the City’s various revenue sources and financial health. Should these initiatives come to fruition,
the City will have to rely on available fund balance to offset any significant revenue losses which
would greatly impact services. The City provides broad services to the Azusa community
including 24-hour police and fire protection, recreation activities, public facilities and tree
maintenance, road and sidewalk maintenance, graffiti removal, community library system, a well-
planned zoned community, etc., all of which requires consistent financial resources. The City is
actively advocating against proposed initiatives that pose a threat to local revenues and continues
to monitor the development of any major milestones on such initiatives.
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 Administrative Services Department - Finance, 213 E. Foothill Blvd.,
Azusa, CA 91702 or emailed to Finance@AzusaCa.gov.
18
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, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 48,815,626$ 58,580,496$ 107,396,122$
Restricted assets:
Cash with fiscal agent 961,994 6,113,465 7,075,459
Receivables:
Accounts, net 1,567,824 8,270,144 9,837,968
Taxes 4,478,380 - 4,478,380
Notes and loans 62,383 3,131 65,514
Accrued interest 16,149 15,670 31,819
Prepaid costs 419,035 56,097 475,132
Inventories 159,357 1,914,081 2,073,438
Total current assets 56,480,748 74,953,084 131,433,832
Noncurrent assets:
Internal balances 467,974 (467,974) -
Due from Successor Agency 6,441,106 2,616,012 9,057,118
Land held for resale 2,003,192 - 2,003,192
Capital assets:
Non-depreciable 4,220,356 16,935,467 21,155,823
Depreciable, net 40,287,943 104,017,126 144,305,069
Total capital assets 44,508,299 120,952,593 165,460,892
Total noncurrent assets 53,420,571 123,100,631 176,521,202
TOTAL ASSETS 109,901,319 198,053,715 307,955,034
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt - 1,247,997 1,247,997
Deferred outflows related to OPEB 11,897,616 626,190 12,523,806
Deferred outflows related to pension 83,913,202 14,840,192 98,753,394
TOTAL DEFERRED OUTFLOWS OF RESOURCES 95,810,818 16,714,379 112,525,197
LIABILITIES
Current liabilities:
Accounts payable 1,840,768 8,563,369 10,404,137
Accrued liabilities 1,409,006 638,928 2,047,934
Accrued interest 27,841 954,616 982,457
Unearned revenue 2,989,411 307,806 3,297,217
Deposits payable 7,000 3,486,850 3,493,850
Due to other governments 1,911 24,655 26,566
Compensated absences - due within one year 2,801,779 1,110,519 3,912,298
Claims and judgements - due within one year 2,653,799 - 2,653,799
Long term debt- due within one year 2,300,000 3,625,000 5,925,000
Total current liabilities 14,031,515 18,711,743 32,743,258
Noncurrent liabilities:
Due to Successor Agency 8,208,833 - 8,208,833
Total OPEB liability 57,597,232 3,031,433 60,628,665
Net pension liabilities 69,081,289 20,449,029 89,530,318
Compensated absences - due in more than one year 826,202 558,707 1,384,909
Claims and judgements - due in more than one year 909,416 - 909,416
Long term debt- due in more than one year 70,980,539 48,262,985 119,243,524
Total noncurrent liabilities 207,603,511 72,302,154 279,905,665
TOTAL LIABILITIES 221,635,026 91,013,897 312,648,923
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 2,340,776 650,071 2,990,847
Deferred inflows related to OPEB 5,030,660 264,772 5,295,432
TOTAL DEFERRED INFLOWS OF RESOURCES 7,371,436 914,843 8,286,279
NET POSITION
Net investment in capital assets 42,264,754 70,312,605 112,577,359
Restricted for:
Community development projects 8,248,127 - 8,248,127
Public safety 637,239 - 637,239
Capital projects 7,874,867 - 7,874,867
Debt service 535,373 6,113,465 6,648,838
Total restricted 17,295,606 6,113,465 23,409,071
Unrestricted (82,854,685) 46,413,284 (36,441,401)
TOTAL NET POSITION (23,294,325)$ 122,839,354$ 99,545,029$
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, 2021
Operating Capital
Charges for Grants and Grants and
Functions / Programs Expenses Services Contributions Contributions Total
Primary Government:
Governmental activities:
General government 12,007,362$ 6,557,183$ 858,736$ -$ 7,415,919$
Public safety 30,091,441 963,977 593,959 - 1,557,936
Community development 5,718,091 3,151,396 657,891 - 3,809,287
Parks and recreation 5,580,230 189,473 458,049 - 647,522
Public works 6,648,325 882,848 6,348,730 2,013,344 9,244,922
Interest on long-term debt (unallocated)145,134 - - - -
Total governmental activities 60,190,583 11,744,877 8,917,365 2,013,344 22,675,586
Business-type activities:
Water 23,140,183 26,934,240 - - 26,934,240
Light 41,202,365 40,641,518 - - 40,641,518
Sewer/Wastewater 2,430,044 3,485,957 - - 3,485,957
Refuse Contract 4,034,579 4,152,430 740,284 - 4,892,714
Total business-type activities 70,807,171 75,214,145 740,284 - 75,954,429
Total primary government 130,997,754$ 86,959,022$ 9,657,649$ 2,013,344$ 98,630,015$
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.
Governmental Business-Type
Activities Activities Total
(4,591,443)$ -$ (4,591,443)$
(28,533,505) - (28,533,505)
(1,908,804) - (1,908,804)
(4,932,708) - (4,932,708)
2,596,597 - 2,596,597
(145,134) - (145,134)
(37,514,997) - (37,514,997)
- 3,794,057 3,794,057
- (560,847) (560,847)
- 1,055,913 1,055,913
- 858,135 858,135
- 5,147,258 5,147,258
(37,514,997) 5,147,258 (32,367,739)
14,418,224 - 14,418,224
796,912 - 796,912
12,520,285 - 12,520,285
7,514,190 - 7,514,190
2,226,483 - 2,226,483
3,379,352 - 3,379,352
1,865,248 - 1,865,248
42,720,694 - 42,720,694
(372,227) 240,751 (131,476)
120,285 - 120,285
1,581,919 (1,581,919) -
44,050,671 (1,341,168) 42,709,503
6,535,674 3,806,090 10,341,764
(29,829,999) 119,033,264 89,203,265
(23,294,325)$ 122,839,354$ 99,545,029$
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, 2021
Non-Major Total
General Governmental Governmental
Fund Funds Funds
ASSETS
Pooled cash and investments 25,332,512$ 21,337,073$ 46,669,585$
Receivables:
Accounts 410,552 862,384 1,272,936
Taxes 4,268,298 210,082 4,478,380
Notes and loans 4,995 57,388 62,383
Accrued interest 12,149 4,000 16,149
Prepaid costs 132,087 78,153 210,240
Due from other funds 818,846 - 818,846
Inventories 159,357 - 159,357
Land held for resale 2,003,192 - 2,003,192
Restricted assets:
Cash and investments with fiscal agents 6,289 955,705 961,994
Advances to Successor Agency 6,441,106 - 6,441,106
Total assets 39,589,383$ 23,504,785$ 63,094,168$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 762,843$ 268,638$ 1,031,481
Accrued liabilities 1,183,472 178,230 1,361,702
Unearned revenues 709,746 2,279,665 2,989,411
Deposits payable 7,000 - 7,000
Due to other governments 1,848 - 1,848
Due to other funds - 319,872 319,872
Advances from other funds 31,000 - 31,000
Total liabilities 2,695,909 3,046,405 5,742,314
DEFERRED INFLOW OF RESOURCES
Unavailable revenues 12,335 337,721 350,056
Total deferred inflow of resources 12,335 337,721 350,056
FUND BALANCES
Nonspendable:
Inventories 159,357 - 159,357
Prepaid costs 132,087 78,153 210,240
Land held for resale 2,003,192 - 2,003,192
Notes and loans 4,995 - 4,995
Advances to Successor Agency 6,441,106 - 6,441,106
Restricted for:
Community development projects - 8,248,127 8,248,127
Public safety - 637,239 637,239
Capital projects - 8,836,861 8,836,861
Debt service - 535,373 535,373
Committed for:
Employee benefits - 2,000,000 2,000,000
Unassigned 28,140,402 (215,094) 27,925,308
Total fund balances 36,881,139 20,120,659 57,001,798
Total liabilities, deferred inflows
of resources, and fund balances 39,589,383$ 23,504,785$ 63,094,168$
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 57,001,798$
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 4,220,356$ -$ 4,220,356
- Depreciable, net 40,287,943 1,291,836 38,996,107
Total capital assets 44,508,299$ 1,291,836$ 43,216,463
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 - OPEB 11,897,616$ -$
Deferred outflow of resources - pension 83,913,202 (578,897)
Deferred inflow of resources - pension (2,340,776) 66,304
Deferred inflow of resources - OPEB (5,030,660) - 87,926,789
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.(27,841)
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.350,056
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. (3,373,819)
Long-term liabilities were not due and payable in the current period.
Therefore, they were not reported in the Governmental Funds Balance Sheet.
Government-
Wide Statement
of Net Position
Internal
Service Funds
- Compensated absences - due within one year (2,801,779)$ 120,341$ (2,681,438)
- Claims and judgements - due within one year (2,653,799) 2,653,799 -
- Long term debt - due within one year (2,300,000) - (2,300,000)
- Due to Successor Agency (8,208,833)- (8,208,833)
- Total OPEB liability (57,597,232)- (57,597,232)
- Net pension liabilities (69,081,289)3,196,830 (65,884,459)
- Compensated absences - due in more than one year (826,202)90,932 (735,270)
- Claims and judgements - due in more than one year (909,416)909,416 -
- Long term debt - due in more than one year (70,980,539)- (70,980,539)
Total long-term liabilities (215,359,089)$ 6,971,318$ (208,387,771)
Net Position of Governmental Activities (23,294,325)$
June 30, 2021
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, 2021
Non-Major Total
General Governmental Governmental
Fund Funds Funds
REVENUES:
Taxes 44,048,688$ 3,998,875$ 48,047,563$
Assessments 3,341,604 - 3,341,604
Licenses and permits 733,450 13,800 747,250
Intergovernmental 837,219 7,877,067 8,714,286
Charges for services 1,964,158 1,769,042 3,733,200
Use of money and property (83,471) 296,406 212,935
Fines and forfeitures 1,362,209 - 1,362,209
Contributions 13 4,484 4,497
Miscellaneous 152,190 31,310 183,500
Total revenues 52,356,060 13,990,984 66,347,044
EXPENDITURES:
Current:
General government 8,999,327 454,924 9,454,251
Public safety 20,356,921 6,099,634 26,456,555
Community development 2,453,615 1,919,288 4,372,903
Parks and recreation 3,418,460 540,954 3,959,414
Public works 959,506 3,882,384 4,841,890
Capital outlay 261,826 6,617,897 6,879,723
Debt service:
Principal retirement 40,943 960,000 1,000,943
Interest and fiscal charges 7,907 140,091 147,998
Cost of issuance 485,938 - 485,938
Total expenditures 36,984,443 20,615,172 57,599,615
REVENUES OVER (UNDER) EXPENDITURES 15,371,617 (6,624,188) 8,747,429
OTHER FINANCING SOURCES (USES):
Transfers in 1,548,097 8,092,209 9,640,306
Transfers out (14,653,493) (319,945) (14,973,438)
Proceeds from sale of capital assets 3,873 1,725 5,598
Proceeds from debt issuance 70,075,000 - 70,075,000
Total other financing sources (uses)56,973,477 7,773,989 64,747,466
SPECIAL ITEM:
Payment for CalPERS unfunded accrued liability (69,582,774) - (69,582,774)
Net change in fund balances 2,762,320 1,149,801 3,912,121
FUND BALANCES:
Beginning of year, as restated 34,118,819 18,970,858 53,089,677
End of year 36,881,139$ 20,120,659$ 57,001,798$
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, 2021
Net Change in Fund Balances - Total Governmental Funds 3,912,121$
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.7,217,167
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.(2,047,948)
Disposals of capital assets are not reported in governmental funds, but in the Government-Wide
Statement of Activities, the loss on the disposal of capital assets is reported.(12,049)
Pension expense does not require the use of current financial resources, and therefore is not
reported as expenditures in goverrnmental funds.(9,437,432)
Employer contributions for pension were recorded as expenditures in the governmental funds.
However in the Government-Wide Financial Statements, these contributions are deferred 75,863,535
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.(1,202,711)
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 2,865
OPEB expense does not require the use of current financial resources, and therefore is not
reported as expenditures in governmental funds.(5,591,313)
Benefit payments are reported as expenditures in the governmental funds, however these
payments are reflected as reductions to the Total OPEB liability on the government-wide
statement of net position.1,235,681
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.48,731
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. 1,000,943
Proceeds from debt issuance provided current financial resources to governmental funds, but
issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position.(70,075,000)
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.5,621,084
Change in Net Position of Governmental Activities 6,535,674$
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
City of Azusa
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Non-Major Total Activities -
Water Light Enterprise Enterprise Internal Service
Fund Fund Funds Funds Funds
ASSETS
Current:
Cash and investments 28,689,759$ 24,415,080$ 5,474,057$ 58,578,896$ 2,147,641$
Receivables:
Accounts 2,749,632 4,158,309 851,429 7,759,370 805,662
Notes and loans 3,131 - - 3,131 -
Accrued interest - - 1,621 1,621 14,049
Prepaid costs 10,843 33,898 4,515 49,256 215,636
Inventories - 1,914,081 - 1,914,081 -
Restricted cash with fiscal agent 3,222,344 1,514,571 1,376,550 6,113,465 -
Total current assets 34,675,709 32,035,939 7,708,172 74,419,820 3,182,988
Noncurrent:
Advances to Successor Agency 2,616,012 - - 2,616,012 -
Advances to other funds - 2,831,000 - 2,831,000 -
Capital assets - net of accumulated depreciation 78,719,244 32,596,389 8,586,959 119,902,592 2,341,837
Total noncurrent assets 81,335,256 35,427,389 8,586,959 125,349,604 2,341,837
Total assets 116,010,965 67,463,328 16,295,131 199,769,424 5,524,825
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,006,676 241,321 - 1,247,997 -
Deferred OPEB related items 250,476 125,238 - 375,714 250,476
Deferred pension related items 4,787,185 6,637,505 2,125,097 13,549,787 1,869,302
Total deferred outflows of resources 6,044,337 7,004,064 2,125,097 15,173,498 2,119,778
LIABILITIES
Current:
Accounts payable 5,843,660 1,906,627 711,729 8,462,016 910,640
Accrued liabilities 201,938 223,479 51,230 476,647 209,585
Accrued interest 912,344 42,272 - 954,616 -
Deposits payable 1,302,573 2,184,224 53 3,486,850 -
Unearned revenue - 307,806 - 307,806 -
Due to other governments 18,527 6,128 - 24,655 63
Due to other funds - - - - 498,974
Compensated absences - due within one year 430,583 360,692 70,321 861,596 369,264
Claims and judgements - due within one year - - - - 2,653,799
Bonds and notes payable - due within one year 2,310,000 875,000 440,000 3,625,000 -
Total current liabilities 11,019,625 5,906,228 1,273,333 18,199,186 4,642,325
Noncurrent:
Advances from other funds 2,800,000 - - 2,800,000 -
Compensated absences - due in more than one year 172,251 287,034 49,868 509,153 140,486
Bonds and notes payable - due in more than one year 44,471,384 1,861,601 1,930,000 48,262,985 -
Claims and judgements - due in more than one year - - - - 909,416
Total OPEB liability 1,212,573 606,287 - 1,818,860 1,212,573
Net pension liability 6,681,776 5,647,503 1,882,470 14,211,749 9,434,110
Total noncurent liabilities 55,337,984 8,402,425 3,862,338 67,602,747 11,696,585
Total liabilities 66,357,609 14,308,653 5,135,671 85,801,933 16,338,910
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 180,405 233,482 19,661 433,548 282,827
Deferred OPEB related items 105,909 52,954 - 158,863 105,909
Total deferred inflows of resources 286,314 286,436 19,661 592,411 388,736
NET POSITION
Net investment in capital assets 32,944,536 30,101,109 6,216,959 69,262,604 2,341,837
Restricted for debt service 3,222,344 1,514,571 1,376,550 6,113,465 -
Unrestricted 19,244,499 28,256,623 5,671,387 53,172,509 (11,424,880)
Total net position 55,411,379$ 59,872,303$ 13,264,896$ 128,548,578 (9,083,043)$
Reconciliation of net position to the Business-Type Activities Statement of Net Position
Net position per Statement of Net Position - Proprietary Funds 128,548,578
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds' activities related to the enterprise funds (5,205,551)
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (503,673)
Net position per Business-Type Activities Statement of Net Position 122,839,354$
Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.36
City of Azusa
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the year ended June 30, 2021
Non-Major Total Internal
Water Light Enterprise Enterprise Service
Fund Fund Funds Funds Funds
OPERATING REVENUES:
Sales and service charges 26,377,730$ 38,252,291$ 7,638,387$ 72,268,408$ 10,648,104$
Interdepartmental charges 526,517 246,525 - 773,042 -
Miscellaneous 17,993 - - 17,993 206
Other restricted revenues - 2,142,702 - 2,142,702 -
Lease revenue 12,000 - - 12,000 -
Total operating revenues 26,934,240 40,641,518 7,638,387 75,214,145 10,648,310
OPERATING EXPENSES:
Administration and general 4,950,904 12,832,353 1,098,626 18,881,883 11,177,667
Source of supply 2,687,208 19,412,649 - 22,099,857 103,552
Pumping - - - - -
Transmission/collection 2,626,304 3,660,132 - 6,286,436 -
Treatment - - 629,833 629,833 -
Refuse collection - - 4,030,503 4,030,503 -
Cost of sales and services 6,850,920 41,590 - 6,892,510 -
Claims expense - - - - 625,176
Depreciation expense 3,845,559 1,518,222 526,776 5,890,557 150,271
Total operating expenses 20,960,895 37,464,946 6,285,738 64,711,579 12,056,666
OPERATING INCOME (LOSS)5,973,345 3,176,572 1,352,649 10,502,566 (1,408,356)
NONOPERATING REVENUES (EXPENSES):
Taxes - - 740,284 740,284 -
Interest revenue 118,662 97,291 24,798 240,751 (945)
Interest expense (1,693,212) (87,277) (92,215) (1,872,704) -
Intergovermernmental - - - - -
Special franchise fees (469,099) (3,575,360) (70,130) (4,114,589) -
Loss on disposal of capital assets - - - - (9,303)
Gain on disposal of capital assets 7,950 - - 7,950 8,388
Total nonoperating revenues (expenses)(2,035,699) (3,565,346) 602,737 (4,998,308) (1,860)
INCOME (LOSS) BEFORE TRANSFERS 3,937,646 (388,774) 1,955,386 5,504,258 (1,410,216)
Transfer in - - - - 7,072,386
Transfer out (26,635) (50,055) (1,117,805) (1,194,495) (544,759)
Change in net position 3,911,011 (438,829) 837,581 4,309,763 5,117,411
Net position:
Beginning of year, as restated 51,500,368 60,311,132 12,427,315 124,238,815 (14,200,454)
End of year 55,411,379$ 59,872,303$ 13,264,896$ 128,548,578$ (9,083,043)$
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 4,309,763$
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds (503,673)
Change in net position per Business-Type Activities Statement of Net Position 3,806,090$
Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.37
City of Azusa
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
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 26,161,472$ 39,910,011$ 7,780,709$ 73,852,192$ 10,832,948$
Cash received from/(paid to) interfund service provided 526,517 246,525 - 773,042 -
Cash paid to suppliers for goods and services (13,597,846) (31,787,660) (4,896,934) (50,282,440) (8,080,322)
Cash paid to employees for services (6,057,670) (8,422,186) (2,586,037) (17,065,893) (3,827,264)
Net cash provided by (used in) operating activities 7,032,473 (53,310) 297,738 7,276,901 (1,074,638)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash disbursed to other funds (26,635) (50,055) (1,117,805) (1,194,495) 6,527,627
Cash received from other funds (700,000) - - (700,000) (2,642,376)
Cash received from grants - - - - (22,046)
Net cash provided by noncapital financing activities (726,635) (50,055) (1,117,805) (1,894,495) 3,863,205
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (5,647,920) (3,474,007) (662,479) (9,784,406) (919,046)
Principal paid on capital debt (2,210,000) (845,000) (420,000) (3,475,000) -
Interest paid on capital debt (1,906,778) (100,399) (92,215) (2,099,392) -
Special franchise fees paid (469,099) (3,575,360) (70,130) (4,114,589) -
Repayment made for advances 3,001,153 750,000 - 3,751,153 -
Taxes - - 740,284 740,284 -
Proceeds from sale of capital assets 7,950 - - 7,950 4,979
Net cash provided by (used in) capital and related financing activities (7,224,694) (7,244,766) (504,540) (14,974,000) (914,067)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 118,662 97,291 31,593 247,546 49,717
Net cash provided by (used in) investing activities 118,662 97,291 31,593 247,546 49,717
Net increase (decrease) in cash and cash equivalents (800,194) (7,250,840) (1,293,014) (9,344,048) 1,924,217
CASH AND CASH EQUIVALENTS:
Beginning of year 32,712,297 33,180,491 8,143,621 74,036,409 223,424
End of year 31,912,103$ 25,929,651$ 6,850,607$ 64,692,361$ 2,147,641$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 28,689,759$ 24,415,080$ 5,474,057$ 58,578,896 2,147,641$
Cash with fiscal agent 3,222,344 1,514,571 1,376,550 6,113,465 -
Total 31,912,103$ 25,929,651$ 6,850,607$ 64,692,361$ 2,147,641$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)5,973,345$ 3,176,572$ 1,352,649$ 10,502,566$ (1,408,356)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 3,845,559 1,518,222 526,776 5,890,557 150,271
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable (119,690) (243,868) 142,362 (221,196) 184,638
(Increase) decrease in inventories - 36,589 - 36,589 -
(Increase) decrease in prepaid expense (9,328) (21,794) (3,759) (34,881) 764,667
(Increase) decrease in deferred OPEB related outflows 48,958 24,479 - 73,437 48,958
(Increase) decrease in deferred pension related outflows (3,868,414) (5,859,618) (1,866,763) (11,594,795) (571,612)
Increase (decrease) in accounts payable 526,184 510,752 (8,156) 1,028,780 200,060
Increase (decrease) in accrued liabilities 6,534 288,558 18,787 313,879 (8,266)
Increase (decrease) in deposits payable (126,561) (241,114) (40) (367,715) -
Increase (decrease) in due to other governments 4,149 (4,437) - (288) 63
Increase (decrease) in claims and judgements - - - - (1,432,126)
Increase (decrease) in compensated absences 95,746 47,080 30,660 173,486 27,537
Increase (decrease) in total OPEB liability (63,169) (31,586) - (94,755) (63,169)
Increase (decrease) in net pension liability 569,580 571,405 125,847 1,266,832 835,429
Increase (decrease) in deferred pension related inflows 43,671 122,496 (20,625) 145,542 91,359
Increase (decrease) in deferred OPEB related inflows 105,909 52,954 - 158,863 105,909
Total adjustments 1,059,128 (3,229,882) (1,054,911) (3,225,665) 333,718
Net cash provided by (used in) by operating activities 7,032,473$ (53,310)$ 297,738$ 7,276,901$ (1,074,638)$
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.38
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.
Custodial Fund
To account for assets held by the City in a fiduciary capacity not reported in a trust.
39
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40
City of Azusa
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Private Purpose
Trust Fund
RDA
Custodial Successor
Fund Agency Fund
ASSETS
Pooled cash and investments 4,390,269$ 2,435,618$
Receivables:
Accounts 177,252 -
Taxes 95,047 -
Notes and loans - 36,863
Advances to City - 8,208,833
Land held for resale - 6,786,378
Restricted:
Cash and investments with fiscal agents 6,690,369 33,463
Capital assets:
Capital assets, not being depreciated - 410,420
Capital assets, net of accumulated depreciation - 737,563
Total assets 11,352,937 18,649,138
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 2,507,501
Total deferred outflows of resources 2,507,501
LIABILITIES
Accounts payable 54,471 36,984
Accrued liabilities 980 -
Accrued interest - 603,073
Unearned revenues 176,811 -
Long-term liabilities:
Due in one year - 2,130,000
Due in more than one year - 37,189,243
Due to City of Azusa - 9,057,118
Total liabilities 232,262 49,016,418
NET POSITION
Held in trust for other purposes 11,120,675 (27,859,779)
Total net position 11,120,675$ (27,859,779)$
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, 2021
Private-Purpose
Trust Fund
Custodial RDA Successor
Fund Agency Fund
ADDITIONS:
Taxes 4,085,647$ 3,829,353$
Fees collected on behalf of others 58,181 -
Interest and change in fair value of investments 2,756 403
Proceeds from debt issuance 5,468,564 -
Other additions 523,975 -
Total additions 10,139,123 3,829,756
DEDUCTIONS:
Administration expenses 118,000 19,037
Contractual services 5,245,296 33,557
Interest expense 2,546,681 1,710,763
Depreciation expense - 105,752
Contributions to other governments - 971,953
Debt payments 7,518,699 -
Total deductions 15,428,676 2,841,062
Change in net position (5,289,553) 988,694
Net position:
Beginning of year, as restated 16,410,228 (28,848,473)
End of year 11,120,675$ (27,859,779)$
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, 2021
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, 2021
45
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, 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, 2021
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 measurable and available only when cash is received by the government.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, except for the Consumer Services Internal Service Fund, which is combined
with business-type activities.
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, 2021
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 and business-type
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 a Custodial 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). Custodial funds accounts for fiduciary
activities not required to be reported in a trust fund. 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.
Custodial 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, 2021
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, 2021
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, 2021
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, 2021
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, 2021
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 commit funds for specific purposes. 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, 2021
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, 2021
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. For this report, the following timeframes are used:
CalPERS PARS
Valuation Date June 30, 2019 July 1, 2020
Measurement Date June 30, 2020 June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020 July 1, 2019 to June 30, 2020
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. For this report, the following timeframes are used:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
U. New Pronouncements
In 2021, the City adopted the following new accounting standards to conform to the following
Governmental Accounting Standards Board Statements:
GASB Statement No. 84, Fiduciary Activities – The objective of this statement is to improve guidance
regarding the dentification of fiduciary activities for accounting and financial reporting purposes and
how those activities should be reported. The statement establishes criteria for identifying fiduciary
activities of all state and local government. The focus of the criteria generally is on (1) whether a
government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a
fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. The City reclassified funds
previously reported as agency funds to custodial funds, as a result of implementation of this
statement.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
56
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
U. New Pronouncements, Continued
GASB Statement No. 90, Majority Equity Interest – The objective of this statement is to improve the
consistency and comparability of reporting a government’s majority equity interest in a legally
separate organization and to improve the relevance of financial statement information for certain
component units. It defines a majority equity interest and specifies that a majority equity interest in a
legally separate organization should be reported as an investment if the government’s holding of the
equity meets the definition of an investment. A majority equity interest that meets the definition of an
investment should be measured using the equity method, unless it is held by a special purpose
government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including
permanent and term endowments) or permanent fund. There was no impact on net position as a result
of implementation of this statement.
GASB Statement No. 93, Replacement of Interbank Offered Rates – The objective of this statement is to
address the accounting and financial reporting implications that result from the elimination of the
London Interbank Offered Rate (LIBOR) that is notably used in most agreements in which variable
payments made or received depend on an interbank offered rate (IBOR). As a result of global reference
rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting
governments to amend or replace financial instruments for the purpose of replacing LIBOR with other
reference rates, by either changing the reference rate or adding or changing fallback provisions related
to the reference rate. There was no impact on net position as a result of implementation of this
statement.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No.
14 and No. 84, and a supersession of GASB Statement No. 32 – The objectives of this statement are to (1)
increase consistency and comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a governing board and the primary
government performs the duties that a governing board typically would perform; (2) mitigate costs
associated with the reporting of certain defined contribution pension plans, defined contribution other
postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB
plans as fiduciary component units in fiduciary fund financial statements; and (3) enhance the
relevance, consistency, and comparability of the accounting and financial reporting for Internal
Revenue Code (IRC) Section 457 deferred compensation plans that meet the definition of a pension
plan and for benefits provided through those plans. There was no impact on net position as a result
of implementation of this statement.
GASB Statement No. 98, The Annual Comprehensive Financial Report – The objective of this statement is
to address references in authoritative literature to the term comprehensive annual financial report. There
was no impact on net position as a result of implementation of this statement.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
57
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, 2021
Cash and investments as of June 30, 2021 consist of the following:
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 48,815,626$ 58,580,496$ 6,825,887$ 114,222,009$
Cash with fiscal agent:
Cash with fiscal agent for debt service 961,994 6,113,465 6,723,832 13,799,291
Total cash with fiscal agent 961,994 6,113,465 6,723,832 13,799,291
Total cash and investments 49,777,620$ 64,693,961$ 13,549,719$ 128,021,300$
Government-Wide Statement of
Net Position
Cash on hand 7,234$
Deposits with financial institution 12,574,748
Total cash on hand and deposits 12,581,982
Local Agency Investment Funds 43,100,061
Government Obligations:
Federal Farm Credit Bank 6,927,090
Federal Home Loan Bank 10,919,600
Federal Home Loan Mortgage Corp.1,982,100
Federal National Mortgage Association 3,961,650
U.S. Treasury 981,060
Certificates of Deposit 10,090,355
Corporate Bonds 18,213,792
Money market mutual funds 5,464,319
Total investments 101,640,027
Total City Treasury 114,222,009
Cash with fiscal agent 13,799,291
Total cash and investments 128,021,300$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
58
2. CASH AND INVESTMENTS, Continued
B. Deposits
The carrying amount of the City’s cash deposit was $12,574,748 at June 30, 2021. Bank balances before
reconciling items were a positive amount of $12,550,185 at June 30, 2021. 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.
The fair 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.
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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
59
2. CASH AND INVESTMENTS, Continued
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, 2021, 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, 2021, the City had $43,100,061 invested in LAIF, which had invested 2.31% of the pool
investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous
year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in
LAIF.
D. Risk Disclosures
Interest Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates.
Information about the sensitivity of the fair values of the City's investments to market interest rate
fluctuations is provided by the following table that shows the distribution to the City's investments by
maturity:
Investment Type 60 months+ Total
Local Agency Investment Fund 43,100,061$ -$ -$ -$ 43,100,061$
Federal Farm Credit Bank - - - 6,927,090 6,927,090
Federal Home Loan Bank 990,580 - - 9,929,020 10,919,600
Federal Home Loan Mortgage Corp.- - - 1,982,100 1,982,100
Federal National Mortgage Assoc.- - - 3,961,650 3,961,650
U.S. Treasury - - - 981,060 981,060
Certificates of Deposit 2,732,750 2,528,057 778,135 4,051,413 10,090,355
Corporate Bonds - 3,313,322 - 14,900,470 18,213,792
Money Market Mutual Funds 5,464,319 - - - 5,464,319
Total Investments 52,287,710$ 5,841,379$ 778,135$ 42,732,803$ 101,640,027$
Investment Maturities (in years)
12 months or
less
13 to 24
months
25 to 60
months
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
60
2. CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
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, 2021, 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, 2021, 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, 2021, 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. As of June 30, 2021, the City had the
following investments in a single issuer that comprised more than 5% of total investments:
Interest Rate Risk: The City does not have a formal policy relating to interest rate risk.
Reported
Issuer Amount
Federal Home Loan Mortgage Corp. 10,919,600$ 10.74%
Federal Farm Credit Bank 6,927,090 6.82%
17,846,690$ 17.56%
Percentage
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
61
2. CASH AND INVESTMENTS, Continued
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, 2021 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.
U.S Treasuries categorized as Level 1 are valued based on quoted prices in active markets for identical
instruments. U.S. government agency obligation, corporate bonds, and certificates of deposit 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.
3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
At June 30, 2021, the City had the following due to/from other funds:
Not Subject
Investment Type Total
to Disclosure Level 1 Level 2 Level 3
U.S. Government Agency Obligations 23,790,440$ -$ -$ 23,790,440$ -$
Corporate bonds 18,213,792 - - 18,213,792 -
Certificates of deposit 10,090,355 - - 10,090,355 -
U.S. Treasury 981,060 - 981,060 - -
Money market funds 5,464,319 5,464,319 - - -
Local Agency Investment Fund 43,100,061 43,100,061 - - -
Total investments 101,640,027$ 48,564,380$ 981,060$ 52,094,587$ -$
Fair Value Measurement Using
Non-Major
Governmental
Funds
Internal Service
Funds Total
Due To General Fund 319,872$ 498,974$ 818,846$
Total 319,872$ 498,974$ 818,846$
Due from other funds
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
62
3. INTERFUND TRANSACTIONS, Continued
B.Advance To/From Other Funds
At June 30, 2021, the City had the following advance to/from other funds:
The General Fund had previously informally borrowed monies from the Water Fund and Light Fund
during the economic downturn; no repayment is required on the loan until the General Fund accumulates
$3.5 million in cash reserves. As of June 30, 2021, the balance owed by the General Fund to the Light Fund
was $31,000.
On March 23, 2020, the City Council adopted Resolution No. 2020-UB-01 approving an agreement for the
Electric Fund to loan $3.5 million to the Water Fund to pay for a portion of the Water Fund’s estimated
$6.4 million unfunded accrued liability for pensions to CalPERS. The balance as of June 30, 2021 was
$2,800,000.
C. Transfers
At June 30, 2021, the City had the following transfers in/out which arise in the normal course of
operations.
The total transfers from the General Fund were for various operating, capital, and debt service
transactions made throughout the year. Transfers from the Non-Major Governmental Funds were for
various operating transactions made throughout the year. Transfers made from the Water and Light
Funds included providing funding for employee benefits. Transfers from Non-Major Enterprise Funds
consisted mainly of payment of franchise fees payable to the General Fund. In addition, the General Fund
recorded additional transfers to the Internal Service Funds to eliminate deficit cash balances.
Other Funds
Funds Li ght Fund Total
Advances From Other Funds
General Fund 31,000$ 31,000$
Water Fund 2,800,000 2,800,000
Total 2,831,000$ 2,831,000$
Advances To
Non-Major
Governmental Internal
General Funds Service Funds Total
General Fund -$ 7,738,442$ 6,915,051$ 14,653,493$
Non-major Govtl Funds 319,945 - - 319,945
Water Fund -26,635 - 26,635
Light Fund -50,055 - 50,055
Non-major Enterprise Funds 855,855 104,615 157,335 1,117,805
Internal Service Funds 372,297 172,462 - 544,759
Total 1,548,097$ 8,092,209$ 7,072,386$ 16,712,692$
Transfers In
Transfers Out
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
63
4. CAPITAL ASSETS
A. Government-Wide Financial Statements
At June 30, 2021, 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 658,340 13,946,494 14,604,834
Total non-depreciable assets 4,220,356 16,935,467 21,155,823
Depreciable assets:
Land Improvements 4,808,456 1,228,893 6,037,349
Building and improvements 14,166,249 23,812,251 37,978,500
Machinery and equipment 9,521,675 14,952,131 24,473,806
Automotive equipment 4,181,243 4,771,819 8,953,062
Infrastructure 69,198,247 170,250,427 239,448,674
101,875,870 215,015,521 316,891,391
Less accumulated depreciation:
Land Improvements 3,826,061 1,019,544 4,845,605
Building and improvements 7,820,440 12,721,126 20,541,566
Machinery and equipment 8,489,261 13,168,281 21,657,542
Automotive equipment 2,903,264 3,714,119 6,617,383
Infrastructure 38,548,901 80,375,325 118,924,226
Total accumulated depreciation 61,587,927 110,998,395 172,586,322
Total depreciable assets, net 40,287,943 104,017,126 144,305,069
Total capital assets, net 44,508,299$ 120,952,593$ 165,460,892$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
64
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:
Depreciation expense by program for capital assets for the year ended June 30, 2021 was as follows:
Balance Balance
June 30, 2020 Additions Retirements June 30, 2021
Governmental activities
Non-depreciable assets:
Land 3,562,016$ -$ -$ 3,562,016$
Construction in progress 3,443,308 768,587 (3,553,555) 658,340
Total non-depreciable assets 7,005,324 768,587 (3,553,555) 4,220,356
Depreciable assets:
Land improvements 4,423,252 385,204 - 4,808,456
Building and improvements 13,887,905 278,344 - 14,166,249
Machinery and equipment 9,159,982 361,693 - 9,521,675
Automotive equipment 3,811,230 523,124 (153,111) 4,181,243
Infrastructure 59,906,956 9,291,291 - 69,198,247
91,189,325 10,839,656 (153,111) 101,875,870
Less accumulated depreciation:
Land improvements 3,700,890 125,171 3,826,061
Building and improvements 7,473,733 346,707 7,820,440
Machinery and equipment 8,240,212 249,049 8,489,261
Automotive equipment 2,832,492 202,531 (131,759) 2,903,264
Infrastructure 37,337,068 1,211,833 38,548,901
Total accumulated depreciation 59,584,395 2,135,291 (131,759) 61,587,927
Total depreciable assets, net 31,604,930 8,704,365 (21,352) 40,287,943
Governmental activities capital assets, net 38,610,254$ 9,472,952$ (3,574,907)$ 44,508,299$
General government 782,860$
Public safety 160,793
Community development 12,143
Parks and recreation 287,771
Public works 804,381
Internal service funds 87,343
Total Governmental Activities 2,135,291$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
65
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:
Depreciation expense for the year ended June 30, 2021 was as follows:
Balance Balance
June 30, 2020 Additions Retirements June 30, 2021
Non-depreciable assets:
Land 2,988,973$ -$ -$ 2,988,973$
Construction in progress 7,664,943 6,816,956 (535,405) 13,946,494
Total non-depreciable assets 10,653,916 6,816,956 (535,405) 16,935,467
Depreciable assets:
Land improvements 1,212,318 16,575 - 1,228,893
Building and improvements 23,301,926 510,325 - 23,812,251
Machinery and equipment 14,639,599 312,532 - 14,952,131
Automotive equipment 4,110,596 731,662 (70,439) 4,771,819
Infrastructure 168,237,141 2,013,286 - 170,250,427
Total depreciable assets 211,501,580 3,584,380 (70,439) 215,015,521
Less accumulated depreciation:
Land improvements 983,349 36,195 - 1,019,544
Building and improvements 12,205,093 516,033 - 12,721,126
Machinery and equipment 12,761,336 406,945 - 13,168,281
Automotive equipment 3,637,386 147,172 (70,439) 3,714,119
Infrastructure 75,528,185 4,847,140 - 80,375,325
Total accumulated depreciation 105,115,349 5,953,485 (70,439) 110,998,395
Total depreciable assets, net 106,386,231 (2,369,105) - 104,017,126
Business-type activity capital assets, net 117,040,147$ 4,447,851$ (535,405)$ 120,952,593$
Water 3,845,559$
Light 1,518,222
Sewer/Wastewater 526,776
Internal service funds 62,928
Total Business-Type Activities 5,953,485$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
66
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, 2021:
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, 2021, was $3,055,000.
Due in
Balance Balance Due Within More Than
June 30, 2020 Additions Deletion June 30, 2021 One Year One Year
Bonds payable:
2016 TRIP Installment Sale 3,170,000$ -$ (115,000)$ 3,055,000$ 120,000$ 2,935,000$
PFA 2003 Certificates
of Participation 845,000 - (845,000) - - -
Unamortized Premiums 154,211 - (3,672) 150,539 - 150,539
Unamortized Discounts (807) - 807 - - -
Subtotal bonds 4,168,404 - (962,865) 3,205,539 120,000 3,085,539
Bonds from direct placement:
Taxable Pension Obligation Bonds
Series 2020 - 70,075,000 70,075,000 2,180,000 67,895,000
Capital lease - direct borrowing 40,943 - (40,943) - - -
Subtotal 4,209,347 70,075,000 (1,003,808) 73,280,539 2,300,000 70,980,539
Note payable - Successor Agency 8,208,833 - - 8,208,833 - 8,208,833
Total long-term debt 12,418,180$ 70,075,000$ (1,003,808)$ 81,489,372$ 2,300,000$ 79,189,372$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
67
5. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2016 Local Measure R Sales Tax Revenue (Installment Sale) Certificates of Participation, Continued
The annual requirements to amortize the outstanding certificates of participation as of June 30, 2021,
including interest are as follows:
2020 Taxable Pension Obligation Bonds
On September 17, 2020, the City issued Taxable Pension Obligation Bonds, Series 2020 in the amount of
$70,075,000 . The proceeds were used to refund the City’s obligation to pay its unfunded liability to
CalPERS under the PERS contract dated December 20, 1948 for the benefit of the City’s employees. The
bonds mature on August 1 each year. Interest on the bonds accrues from the date of delivery and is
payable semiannually on each February 1 and August 1, commencing August 1, 2021.
The annual requirements to amortize the outstanding certificates of participation as of June 30, 2021,
including interest are as follows:
Year Ending June 30, Principal Interest Total
2022 120,000$ 109,194$ 229,194$
2023 125,000 104,394 229,394
2024 130,000 99,384 229,384
2025 135,000 92,894 227,894
2026 140,000 86,144 226,144
2027-2031 810,000 335,219 1,145,219
2032-2036 950,000 194,750 1,144,750
2037-2039 645,000 42,250 687,250
Total 3,055,000$ 1,064,229$ 4,119,229$
Year Ending June 30, Principal Interest Total
2022 2,180,000$ 2,567,816$ 4,747,816$
2023 2,865,000 1,885,942 4,750,942
2024 2,905,000 1,844,972 4,749,972
2025 2,950,000 1,798,436 4,748,436
2026 3,005,000 1,746,398 4,751,398
2027-2031 16,055,000 7,697,008 23,752,008
2032-2036 18,390,000 5,368,208 23,758,208
2037-2041 21,725,000 2,023,128 23,748,128
Total 70,075,000$ 24,931,908$ 95,006,908$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
68
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, 2021 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.
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 $955,000. Interest ranges from 2.000% to 5.000% and is payable semi-annually on July 1 and
January 1.
Due in
Balance Balance Due Within More Than
June 30, 2020 Deletion June 30, 2021 One Year One Year
Bonds payable:
2012 Water Refunding Bonds, Series A 3,565,000$ (835,000)$ 2,730,000$ 865,000$ 1,865,000$
2015 Water System Refunding Revenue Bonds 42,850,000 (1,375,000) 41,475,000 1,445,000 40,030,000
2012 Electric Refunding Revenue Bonds, Series 3,555,000 (845,000) 2,710,000 875,000 1,835,000
Unamortized Premiums 2,849,597 (246,612) 2,602,985 - 2,602,985
Subtotal 52,819,597 (3,301,612) 49,517,985 3,185,000 46,332,985
Bonds from direct placement:
2011 Sewer Installment, Series A 190,000 (190,000) - - -
2011 Sewer Installment, Series B 2,600,000 (230,000) 2,370,000 440,000 1,930,000
Subtotal 2,790,000 (420,000) 2,370,000 440,000 1,930,000
Total long-term debt 55,609,597$ (3,721,612)$ 51,887,985$ 3,625,000$ 48,262,985$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
69
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, 2021, including interest are as
follows:
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 $3,035,000. Interest ranges from 3.000% to 5.000% and is payable
semi-annually on July 1 and January 1.
The annual requirements to amortize the outstanding bonds as of June 30, 2021, including interest are as
follows:
Year Ending June 30, Principal Interest Total
2022 865,000$ 114,875$ 979,875$
2023 910,000 70,500 980,500
2024 955,000 23,875 978,875
Total 2,730,000$ 209,250$ 2,939,250$
Year Ending June 30, Principal Interest Total
2022 1,445,000$ 1,652,063$ 3,097,063$
2023 1,520,000 1,577,938 3,097,938
2024 1,600,000 1,499,938 3,099,938
2025 1,680,000 1,417,938 3,097,938
2026 1,765,000 1,331,813 3,096,813
2027-2031 9,960,000 5,523,538 15,483,538
2032-2036 12,055,000 3,426,669 15,481,669
2037-2041 11,450,000 938,600 12,388,600
Total 41,475,000$ 17,368,497$ 58,843,497$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
70
5. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2012 Electric Refunding Revenue Bonds
On May 23, 2012, the City issued $5,820,000 of 2012 Electric System Refunding Revenue Bonds, Series B.
The proceeds were primarily used to advance refund all of the City’s obligations in connection with the
Financing Authority for Resource Efficiency of California Certificates of Participation, Series B. The bonds
are payable solely from the Electric net revenues, and the City is not obligated to pay them except from
the applicable Electric net revenues. Serial bonds mature in annual installments beginning on July 1, 2017
through July 1, 2023, in amounts ranging from $650,000 to $930,000. Interest ranges from 2.000% to 5.000%
and is payable semi-annually on July 1 and January 1.
Debt covenants require that the City maintain a reserve account equal $582,000. As of June 30, 2021, the
reserve requirement was fully funded.
The annual requirements to amortize the outstanding bonds as of June 30, 2021, including interest are as
follows:
2011 Sewer Installment Agreement Series 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 $505,000. Interest rates on the Series B installments are 3.600%.
Year Ending June 30, Principal Interest Total
2022 875,000$ 69,231$ 944,231$
2023 905,000 40,909 945,909
2024 930,000 13,950 943,950
Total 2,710,000$ 124,090$ 2,834,090$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
71
5 LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2011 Sewer Installment Agreement Series B, Continued
The annual requirements to amortize the outstanding installment agreements as of June 30, 2021,
including interest are as follows:
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, 2021, the total outstanding balances of the special
tax bonds were $49,300,000.
Year Ending
June 30, Principal Interest Total
2022 440,000$ 77,220$ 517,220$
2023 455,000 61,110 516,110
2024 475,000 44,370 519,370
2025 490,000 27,000 517,000
2026 510,000 9,090 519,090
Total 2,370,000 218,790$ 2,588,790$
2011 Sewer Installment, Series B
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
72
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.
The City accrues the liability for compensated leave as it is earned by employees. The amount of
compensated leaves payable outstanding was $5,297,207 as of June 30, 2021.
7. RETIREMENT PLANS
The City of Azusa contributes to the California Public Employees Retirement System (PERS), an agent
multiple-employer public employee defined benefit pension plan for the miscellaneous plan and a cost
sharing multiple-employer public employee defined benefit pension plan for the safety plan. PERS provides
retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for participating public entities
within the State of California. Benefit provisions and all other requirements are established by State statute
and City ordinance. Copies of PERS’ annual financial report may be obtained from their executive office: 400
P Street, Sacramento, CA 95814.
Additionally, the City of Azusa contributes to the Public Agency Retirement System (PARS) defined
contribution plan and the PARS Retirement Enhancement Plans defined benefit plans (AMMA, Executives,
IBEW, and SEIU). These plans are provided and administered by the Public Agency Retirement System
Alternate Retirement System Plan.
Due in
Balance Balance Due Within More Than
June 30, 2020 Additions Deletions June 30, 2021 One Year One Year
Governmental Activities
Compensated Leaves Payable 3,655,212$ 2,710,230$ (2,737,461)$ 3,627,981$ 2,801,779$ 826,202$
Business-Type Activities
Compensated Leaves Payable 1,489,703$ 1,172,464$ (992,941)$ 1,669,226$ 1,110,519$ 558,707$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
73
7. RETIREMENT PLANS, Continued
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.
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.
Deferred Net Deferred
Outflows Related Pension Inflows Related Pension
to Pension Liability To Pension Expense
CalPERS Miscellaneous Agent Multiple Employer Plan 47,438,473$ 42,892,992$ 185,341$ 5,896,187$
CALPERS Cost Sharing Plan - Safety 48,831,987 41,027,719 1,894,589 6,624,934
PARS Agent Multiple Employer Plan - AMMA 919,664 1,488,976 332,841 291,599
PARS Agent Multiple Employer Plan - Executives 26,265 2,182,749 - 275,884
PARS Agent Multiple Employer Plan - IBEW 1,293,733 1,548,957 536,604 1,056,712
PARS Agent Multiple Employer Plan - SEIU 243,272 388,925 41,472 87,295
Total 98,753,394$ 89,530,318$ 2,990,847$ 14,232,611$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
74
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Benefits Provided, Continued
The miscellaneous agent multiple employer plan’s provisions and benefits in effect at June 30, 2021 are
summarized as follows:
The safety cost sharing plan rate plan’s provisions and benefits in effect at June 30, 2021 are summarized
as follows:
Employees Covered – As of the measurement date, the following employees were covered by the benefit
terms for the Miscellaneous Agent Multiple-Employer Plan:
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%2.00%
Required employee contribution rates 7.00%6.75%
Required employer contribution rates 10.313%10.313%
Required UAL payment 2,920,898$ -$
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 50 50 57
Monthly benefits, as a % of annual salary 3.00%2.00%2.70%
Required employee contribution rates 9.000%9.000%13.750%
Required employer contribution rates 28.188%26.044%13.884%
Required UAL payment 2,512,360$ 5,920$ 2,847$
Miscellaneous
Inactive employees or beneficiaries
currently receiving benefits 375
Inactive employees entitled to but not yet
receiving benefits 260
Active employees 223
Total 858
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
75
7. RETIREMENT PLANS, Continued
A.CalPERS Plans, Continued
Benefits Provided, Continued
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.
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, 2020, using an annual actuarial
valuation as of June 30, 2019 rolled forward to June 30, 2020 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, 2019 and June 30, 2020 were as follows:
.
City Cost Sharing
Plan
Proportion - June 30, 2019 0.36592%
Proportion - June 30, 2020 0.37708%
Change - Increase (Decrease) 0.01116%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
76
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Net Pension Liability, Continued
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, 2019 actuarial valuations were
determined using the following actuarial assumptions:
(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
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an
actuarial experience study for the fiscal years 1997 to 2015, 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.
Miscellaneous Agent Multiple
Employer Plan Safety Cost Sharing Plan
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.15%7.15%
Inflation 2.50%2.50%
Salary Increases(1)
Investment Rate of Return (2)7.15%7.15%
Mortality (3)
Post Retirement Benefit Increase
Entry-Age Normal Cost Method
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
The lesser of contract COLA or 2.50% until Purchasing Power
Protection Allowance floor on purchasing power applies, 2.50%
thereafter
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
77
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Net Pension Liability, Continued
Discount Rate (Continued) - The long-term expected rate of return on pension plan investments was
determined using a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above, and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. These rates of return are net of administrative expenses.
New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10(a)Years 11+(b)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) An expected inflation of 2.0% used for this period.
(b) An expected inflation of 2.92% used for this period.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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:
CalPERS Cost Sharing Plan - The City contributed $3,716,215 for the measurement period ended June
30, 2020 and $43,611,890 for the fiscal year ended June 30, 2021. The City’s contribution of $43,611,890 is
reflected as a deferred outflow of resources in the City’s basic financial statements as of June 30, 2021.
As of June 30, 2021, the City reported net pension liabilities for its proportionate share of the net pension
liability of the Cost Sharing Plan of $41,027,719.
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 $ 158,816,024 $ 118,498,704 $ 40,317,320
Changes in the year:
Service cost 2,740,061 - 2,740,061
Interest on the total pension liability 11,151,551 - 11,151,551
Differences between actual and
expected experience (273,598) - (273,598)
Changes in assumptions - - -
Plan to Plan Resource Movement - (769) 769
Contribution - employer - 4,195,424 (4,195,424)
Contribution - employee - 1,149,614 (1,149,614)
Net investment income - 5,865,127 (5,865,127)
Administrative expenses - (167,054) 167,054
Benefit payments , including refunds of
employee contributions (7,893,434) (7,893,434) -
Net changes 5,724,580 3,148,908 2,575,672
Balance at June 30, 2020 $ 164,540,604 $ 121,647,612 $ 42,892,992
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position
is available in the separately issued CalPERS financial reports. Reports may be obtained from
www.calpers.ca.gov.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense of $5,896,187 for the Miscellaneous
Agent Multiple Employer Plan and $6,624,934 for the Safety Cost Sharing Plan.
At June 30, 2021, 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:
CalPERS
Miscellaneous
Agent Multiple
Employer Plan
CalPERS Safety
Cost Sharing
Plan
Total CalPERS'
Plans
1% Decrease
Net Pension Liability $ 64,873,542 $ 60,183,446 125,056,988$
Current Discount Rate
Net Pension Liability $ 42,892,992 $ 41,027,719 83,920,711$
1% Increase
Net Pension Liability $ 24,790,394 $ 25,308,634 50,099,028$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date 45,628,370$ -$
Differences between actual and expected
experience 841,332 (185,341)
Changes in assumptions - -
Net differences between projected and
actual earnings on plan investments 968,771 -
Total 47,438,473$ (185,341)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
80
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$45,628,370 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
At June 30, 2021, 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:
Fiscal Year
Ending June 30:
2022 $ 302,677
2023 219,901
2024 602,762
2025 499,422
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date $ 43,611,890 $ -
Differences between actual and expected
experience 3,181,462 -
Changes in assumptions - (136,664)
Changes in employer's proportion 1,146,900 -
Differences between the employer's
contribution and the employer's
proportionate share of contributions - (1,757,925)
Net differences between projected and
actual earnings on plan investments 891,705 -
Total 48,831,957$ (1,894,589)$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
81
7. RETIREMENT PLANS, Continued
A. CalPERS Plans, Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$43,611,890 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Payables to the Pension Plan
At June 30, 2021, 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 133 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.
Fiscal Year
Ending June 30:
2022 $ 710,532
2023 1,248,307
2024 919,874
2025 446,765
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, 2021 are
summarized as follows:
Employees Covered – As of the June 30, 2020, the following employees were covered by the PARS
Retirement Enhancement Plans were as follows:
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 governmental activities, the General Fund has typically been used in prior years to liquidate pension
liabilities.
AMMA Executive IBEW SEIU
Hire date
Jul y 1, 2007
and after
Jul y 1, 2006
and after
July 1, 2006
and after
Jul y 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 salar 0.50%0.50%0.50%0.50%
Required employee contribution rates 2.50%0.00%2.00%4.00%
Required employer contribution rates 11.50%24.91%7.44%4.73%
AMMA Executive IBEW SEIU
Inactive employees or beneficiaries
currently receiving benefits 10 7 22 4
Inactive employees entitled to but not yet
receiving benefits 10 4 19 8
Active employees 14 1 31 5
Total 34 12 72 17
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
83
7. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Benefits Provided, Continued
For the measurement period ended June 30, 2020 (the measurement date), the employer and employee
contribution rates were as follows:
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 July 1, 2020 actuarial valuations were determined
using the following actuarial assumptions:
Discount Rate - The plans’ fiduciary net positions 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.
AMMA Executive IBEW SEIU
Employer contribution rate 11.50% 24.91% 7.44% 4.73%
Employee contribution rate 2.50% 0.00% 2.00% 4.00%
AMMA Executive IBEW SEIU
Valuation Date July 1, 2020 July 1, 2020 July 1, 2020 July 1, 2020
Measurement Date June 30, 2020 June 30, 2020 June 30, 2020 June 30, 2020
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.50%6.50%6.50%6.50%
Inflation 2.50%2.50%2.50%2.50%
Salary Increases
Investment Rate of Return 6.50%6.50%6.50%6.50%
Mortality (1)
Payroll Growth 2.75%n/a 2.75%2.75%
Entry-Age Normal Cost Method
Varies by Entr y Age and Service
Derived using CalPERS' Membership Data for all Funds
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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
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 4.31% -0.22% -0.20%
US Core Fixed Income Barclays Aggregate 37.74% 0.92% 0.84%
US Equity Market Russell 3000 45.67% 4.82% 3.52%
Foreign Developed Equity MSCI EAFE NR 7.10% 6.32% 4.75%
Emerging Markets Equity MSCI EM NR 4.20% 8.35% 5.53%
US REITs FTSE NAREIT Equity REIT 0.98%5.32%3.62%
Assumed Inflation - Mean 2.21%2.20%
Assumed Inflation - Standard Deviation 1.65%1.65%
Portfolio Real Mean Return 3.39%2.92%
Portfolio Nominal Mean Return 5.60%5.18%
Portfolio Standard Deviation 9.60%
Long-Term Expected Rate of Return 6.50%
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 11.10% -0.22% -0.20%
US Core Fixed Income Barclays Aggregate 35.06% 0.92% 0.84%
US Equity Market Russell 3000 42.43% 4.82% 3.52%
Foreign Developed Equity MSCI EAFE NR 6.60% 6.32% 4.75%
Emerging Markets Equity MSCI EM NR 3.90% 8.35% 5.53%
US REITs FTSE NAREIT Equity REIT 0.91% 5.32% 3.62%
Assumed Inflation - Mean 2.21% 2.20%
Assumed Inflation - Standard Deviation 1.65% 1.65%
Portfolio Real Mean Return 3.13% 2.72%
Portfolio Nominal Mean Return 5.35% 4.98%
Portfolio Standard Deviation 8.92%
Long-Term Expected Rate of Return 6.50%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
85
7. RETIREMENT PLANS, Continued
B. PARS Retirement Enhancement Plans, Continued
Net Pension Liability, Continued
IBEW
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 3.95% -0.22% -0.20%
US Core Fixed Income Barclays Aggregate 37.88% 0.92% 0.84%
US Equity Market Russell 3000 45.84% 4.82% 3.52%
Foreign Developed Equity MSCI EAFE NR 7.13%6.32%4.75%
Emerging Markets Equity MSCI EM NR 4.21%8.35%5.53%
US REITs FTSE NAREIT Equity REIT 0.99%5.32%3.62%
Assumed Inflation - Mean 2.21%2.20%
Assumed Inflation - Standard Deviation 1.65%1.65%
Portfolio Real Mean Return 3.40%2.93%
Portfolio Nominal Mean Return 5.62%5.19%
Portfolio Standard Deviation 9.64%
Long-Term Expected Rate of Return 6.50%
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 3.95% -0.22% -0.20%
US Core Fixed Income Barclays Aggregate 37.88% 0.92% 0.84%
US Equity Market Russell 3000 45.84% 4.82% 3.52%
Foreign Developed Equity MSCI EAFE NR 7.13% 6.32% 4.75%
Emerging Markets Equity MSCI EM NR 4.21% 8.35% 5.53%
US REITs FTSE NAREIT Equity REIT 0.99% 5.32% 3.62%
Assumed Inflation - Mean 2.21% 2.20%
Assumed Inflation - Standard Deviation 1.65% 1.65%
Portfolio Real Mean Return 3.40% 2.93%
Portfolio Nominal Mean Return 5.62% 5.19%
Portfolio Standard Deviation 9.64%
Long-Term Expected Rate of Return 6.50%
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, 2019 $ 4,032,907 $ 3,061,538 $ 971,369
Changes in the year:
Service cost 127,682 -127,682
Interest on the total pension liability 265,646 -265,646
Changes in assumptions (330,627)-(330,627)
Economic/demographic gains or losses 775,464 -775,464
Contribution - employer -210,857 (210,857)
Contribution - employee -42,940 (42,940)
Net investment income -76,169 (76,169)
Administrative expenses -(9,408) 9,408
Bene fit payments , including refunds of
employee contributions (149,813) (149,813) -
Net changes 688,352 170,745 517,607
Balance at June 30, 2020 $ 4,721,259 $ 3,232,283 $ 1,488,976
Increase (Decrease)
Executive Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 $ 3,155,268 $ 1,107,754 $ 2,047,514
Changes in the year:
Interest on the total pension liability 199,069 -199,069
Changes in assumptions (358,113)-(358,113)
Economic/demographic gains or losses 487,136 487,136
Contribution - employer -173,084 (173,084)
Net investment income -25,202 (25,202)
Administrative expenses -(5,429) 5,429
Bene fit payments , including refunds of
employee contributions (188,289) (188,289) -
Net changes 139,803 4,568 135,235
Balance at June 30, 2020 $ 3,295,071 $ 1,112,322 $ 2,182,749
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, 2019 $ 3,920,722 $ 2,804,115 $ 1,116,607
Changes in the year:
Service cost 101,455 - 101,455
Interest on the total pension liability 256,241 - 256,241
Changes in assumptions (624,522) - (624,522)
Economic/demographic gains or losses 1,065,861 - 1,065,861
Contribution - employer - 233,728 (233,728)
Contribution - employee - 71,212 (71,212)
Net investment income - 70,961 (70,961)
Administrative expenses - (9,216) 9,216
Benefit payments , including refunds of
employee contributions (162,585) (162,585) -
Net changes 636,450 204,100 432,350
Balance at June 30, 2020 $ 4,557,172 $ 3,008,215 $ 1,548,957
Increase (Decrease)
SEIU Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 $ 657,272 $ 505,074 $ 152,198
Changes in the year:
Service cost 21,632 - 21,632
Interest on the total pension liability 43,192 - 43,192
Changes in assumptions (23,300) - (23,300)
Economics/Demographic gains or losses 248,907 - 248,907
Contribution - employer - 22,990 (22,990)
Contribution - employee - 20,797 (20,797)
Net investment income - 12,515 (12,515)
Administrative expenses - (2,598) 2,598
Benefit payments , including refunds of
employee contributions (29,295) (29,295) -
Net changes 261,136 24,409 236,727
Balance at June 30, 2020 $ 918,408 $ 529,483 $ 388,925
Increase (Decrease)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position
is available in the separately issued PARS financial reports.
Payables to the Pension Plan
At June 30, 2021, the City reported no payables for outstanding amounts of contributions for the PARS
Retirement Enhancement Plans.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense for each PARS Retirement
Enhancement Plan as follows:
AMMA Executive IBEW SEIU Total PARS' Plans
1% Decrease
Net Pension Liability $ 2,111,996 $ 2,586,061 $ 2,184,529 $ 512,692 7,395,278$
Current Discount Rate
Net Pension Liability $ 1,488,976 $ 2,182,749 $ 1,548,957 $ 388,925 5,609,607$
1% Increase
Net Pension Liability $ 966,520 $ 1,846,654 $ 1,016,232 $ 286,843 4,116,249$
Pension
Expense
PARS Agent Multiple Employer Plan - AMMA 291,599$
PARS Agent Multiple Employer Plan - Executives 275,884
PARS Agent Multiple Employer Plan - IBEW 1,056,712
PARS Agent Multiple Employer Plan - SEIU 87,295
Total 1,711,490$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, 2021, 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:
$182,712, $237,021, and $38,715 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized as pension expense as follows for each PARS
Retirement Enhancement Plan:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 182,712$ -$ -$ -$
Differences between actual and expected
experience 571,395 (89,221) - -
Changes in assumptions 89,098 (243,620) - -
Net differences between projected and
actual earnings on plan investments 76,459 - 26,265 -
Total 919,664$ (332,841)$ 26,265$ -$
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 237,021$ -$ 38,715$ -$
Differences between actual and expected
experience 864,755 (29,916) 177,791 (24,829)
Changes in assumptions 122,642 (506,688) 14,315 (16,643)
Net differences between projected and
actual earnings on plan investments 69,315 - 12,451 -
Total 1,293,733$ (536,604)$ 243,272$ (41,472)$
AMMA Executive
IBEW SEIU
Fiscal Year
Ending June 30: AMMA Executive IBEW SEIU
2022 $ 116,757 $ (1,131) $ 113,442 $ 59,902
2023 142,254 8,146 131,774 63,119
2024 119,928 10,020 137,059 35,925
2025 25,172 9,230 112,854 4,139
2026 - - 24,979 -
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
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, 2021, the
covered payroll for employees in the plan was $9,807,103. Total payroll for the City was $32,658,638. 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, 2021, the employer and
the employees each contributed an amount equal to $594,609. Under this plan, normal retirement age is 60
years of age. Plan assets are primarily invested in money market funds.
8. POST-EMPLOYMENT BENEFITS
B.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.
C.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 $136 per month. Other benefit provisions apply.
D.Employees Covered by Benefit Terms
As of June 30, 2021, the following employees were covered by the benefit terms for the plan:
Inactive employees or beneficiaries
currently receiving benefits 232
Active employees 251
Total 483
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
91
8. POST-EMPLOYMENT BENEFITS, Continued
E. 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.
F. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.
Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement date.
Discount Rate
The discount rate used to measure the total OPEB liability was 2.16%. 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.
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 2.16%
Inflation 2.75%
Salary Increases
Mortality
Healthcare cost trend rates:7.0% to 4.0%
Entry-Age Normal Cost Method
3%. Individual salary increases based on CalPERS
Derived using CalPERS' Membership Data for all Funds
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
92
8. POST-EMPLOYMENT BENEFITS, Continued
G.Changes in the Total OPEB Liability
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:
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:
.
Total OPEB Liability
Balance at June 30, 2020 $ 63,787,107
Changes in the year:
Service cost 2,795,291
Interest on the total OPEB liability 1,457,098
Differences b etween actual and
expected experience (4,193,319)
Changes in assumptions (1,916,795)
Benefit payments, including refunds
of employee contributions (1,300,717)
Net changes (3,158,442)
Balance at June 30, 2021 $ 60,628,665
1% Decrease - 1.16%
Total OPEB liability 73,011,983$
Current Discount Rate - 2.16%
Total OPEB liability 60,628,665$
1% Increase - 3.16%
Total OPEB liability 51,050,626$
1% Decrease - 6.00% Decreasing to 3.00%
Total OPEB liability 49,596,635$
Current Discount Rate - 7.00% Decreasing to 4.00%
Total OPEB liability 60,628,665$
1% Increase - 8.00% Decreasing to 5.00%
Total OPEB liability 75,339,522$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
93
8. POST-EMPLOYMENT BENEFITS, Continued
G. Changes in the Total OPEB Liability, Continued
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $6,050,636. At June 30, 2021, the
City reported deferred outflows of resources and deferred inflows of resources related to OPEB.
Amounts reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense
as follows:
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.
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual
experience $ 1,165,856 $ 3,634,210
Changes in assumptions 11,357,950 1,661,222
Total 12,523,806$ 5,295,432$
Fiscal Year
Ending June 30:
2022 $ 1,633,203
2023 1,633,203
2024 1,633,203
2025 1,633,203
2026 1,216,341
Thereafter (520,779)
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
94
9. RISK MANAGEMENT, Continued
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.
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.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
95
9. RISK MANAGEMENT, Continued
B. Self-Insurance Programs of the Authority, Continued
For 2019-20 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory
limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5
million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to
$10 million are pooled among members.
C. Independent Cities Risk Management Authority (ICRMA)
Prior to July 1, 2017, the City was a member of Independent Cities Risk Management Authority (ICRMA)
for general liability and worker’s compensation claims. The City retains responsibility for its self-insured
portion of claims incurred prior to July 1, 2016.
D. Claim Liability
The City’s claims activity is recorded in its internal service funds. Estimated liabilities are recorded when
it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims
that have been incurred but not reported (IBNRs) are also included in the liability estimates. A summary
of the changes in claims liabilities for the past three fiscal years follows.
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled
or insured liability coverage in 2019-20.
Fiscal Year
Claims Claims and Claims
For the Years Payable Changes in Claims Payable Due Within
Ended June 30, July 1 Estimates Payments June 30 One Year
2019 2,787,382$ 2,371,449$ (1,580,817)$ 3,578,014$ 1,790,632$
2020 3,578,014 3,423,783 (2,006,456) 4,995,341 3,207,959
2021 4,995,341 1,221,673 (2,653,799) 3,563,215 2,653,799
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
96
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,
2021, is as follows:
Assets:
Current assets $ 5,447,634
Restricted assets 1,376,550
Capital assets 8,586,959
Total assets 15,411,143
Deferred outflows of resources:
Deferred pension related items 2,125,097
Total deferred outflows of resources 2,125,097
Liabilities:
Current liabilities 605,293
Noncurrent liabilities 3,862,338
Total liabilities 4,467,631
Deferred inflows of resources
Deferred pension related items 19,661
Total deferred inflows of resources 19,661
Net position:
Net investment in capital assets 6,216,959
Restricted 1,376,550
Unrestricted 5,455,439
Total net position $ 13,048,948
Condensed Statement of Net Position
Sewer charges $ 3,485,957
Depreciation expense (526,776)
Other operating expenses (1,728,459)
Operating income 1,230,722
Nonoperating revenues(expenses):
Investment earnings 24,798
Interest expense (92,215)
Special franchise fees (70,130)
Transfers out (195,615)
Change in net position 897,560
Beginning net position, as restated 12,151,388
Ending net position $ 13,048,948
Condensed Statement of Revenues, Expenses
and Changes in Net Position
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
97
10. SEGMENTS OF ENTERPRISE ACTIVITIES, Continued
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, 2021, the City's entitlement of significant projects of SCPPA includes the following: 1% of
SCPPA's $868,419,917 investment (at cost) in the Palo Verde Nuclear Generating Station (with related SCPPA
indebtedness of $0), 1% of SCPPA's $58,615,883 investment (at cost) in Mead - Phoenix Transmission Project
(with related SCPPA indebtedness of $110,754), and 2.21% of SCPPA's $175,478,612 investment (at cost) in
Mead - Adelanto Transmission Project (with related SCPPA 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.
Net cash provided by (used in):
Operating activities $ 138,285
Noncapital financing activities (195,615)
Capital and related financing activities (1,244,824)
Investing activities 31,593
Net increase in cash (1,270,561)
Beginning cash and cash equivalents 7,805,104
Ending cash and cash equivalents $ 6,534,543
Condensed Statement of Cash Flows
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
98
12. 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 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, 2021
99
12. 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, 2020 Additions Retirements June 30, 2021
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 1,096,936 58,400 - 1,155,336
Building and Structures 444,634 23,404 - 468,038
Infrastructure 229,390 23,948 - 253,338
Total accumulated depreciation 1,770,960 105,752 - 1,876,712
Net capital assets being depreciated 843,315 (105,752) - 737,563
Capital Assets, net 1,253,735$ (105,752)$ -$ 1,147,983$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
100
12. 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:
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, 2021, was $5,990,000.
Balance Balance Due Within
June 30, 2020 Additions Deletions June 30, 2021 One Year
Fiduciary Funds
2014 Refunding TAB 6,810,000$ -$ (820,000)$ 5,990,000$ 855,000$
2015 Refunding TAB, Series A 14,315,000 - - 14,315,000 -
2015 Refunding TAB, Series B 14,735,000 - (330,000) 14,405,000 350,000
2017 Refunding TABS, Series A 2,140,000 - (690,000) 1,450,000 715,000
2017 Refunding TABS, Series B 3,180,000 - (210,000) 2,970,000 210,000
Unamortized premium (discount) 203,423 - (14,180) 189,243 -
Total Fiduciary Funds 41,383,423$ -$ (2,064,180)$ 39,319,243$ 2,130,000$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
101
12. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, Continued
2014 Subordinate Tax Allocation Refunding Bonds, Series A, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including
interest are as follows:
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 $2,635,000 maturing on August 1, 2016 through
August 1, 2036. The bonds carry interest rates of 1.00% and 4.50%.
Year Ending June 30, Principal Interest Total
2022 855,000$ 233,769$ 1,088,769$
2023 905,000 189,769 1,094,769
2024 1,900,000 130,894 2,030,894
2025 180,000 90,144 270,144
2026 190,000 80,894 270,894
2027-2031 1,345,000 237,275 1,582,275
2032-2036 615,000 78,028 693,028
Total 5,990,000$ 1,040,772$ 7,030,772$
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
102
12. 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, 2021, including
interest are as follows:
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 $1,114,626 maturing on February 1,
2018 through August 1, 2032. The bonds carry interest rates of 3.13% and 2.59%.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including
interest are described on the following page.
Year Ending
June 30, Principal Interest Total Principal Interest Total
2022 -$ 504,213$ 504,213$ 350,000$ 580,019$ 930,019$
2023 - 504,213 504,213 355,000 569,000 924,000
2024 - 504,213 504,213 295,000 558,069 853,069
2025 - 504,213 504,213 2,000,000 515,406 2,515,406
2026 - 504,213 504,213 2,075,000 436,406 2,511,406
2027-2031 2,535,000 2,397,481 4,932,481 9,230,000 961,159 10,191,159
2032-2036 11,205,000 1,082,881 12,287,881 100,000 6,750 106,750
2037-2041 575,000 10,781 585,781 - - -
Total 14,315,000$ 6,012,206$ 20,327,206$ 14,405,000$ 3,626,808$ 18,031,808$
2015 Subordinate Bond, Series A 2015 Subordinate Bond, Series B
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
103
12. RDA OBLIGATION RETIREMENT TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES,
Continued
C. Long-Term Debt, Continued
2017 Tax Allocation Refunding Bonds, Series A & B, Continued
13. NEGATIVE FUND BALANCE
At June 30, 2021, the following funds reported negative fund balances:
Non-Major Governmental Funds:
Community Development Block Grant $44,065
LACMTA Special Revenue Fund $95,334
Capital Projects Fund $541
Internal Service Funds
Consumer Services Internal Service Fund $5,709,224
Self Insurance Internal Service Fund $2,128,258
IT Services Internal Service Fund $2,669,578
The City believes the above noted deficits will be eliminated by and future service charges and/or interfund
transfers.
Year Ending
June 30, Principal Interest Total Principal Interest Total
2022 715,000$ 34,195$ 749,195$ 210,000$ 74,204$ 284,204$
2023 735,000 11,503 746,503 220,000 68,635 288,635
2024 - - - 225,000 62,872 287,872
2025 - - - 230,000 56,980 286,980
2026 - - - 240,000 50,893 290,893
2027-2031 - - - 1,285,000 157,407 1,442,407
2032-2036 - - - 560,000 14,634 574,634
Total 1,450,000$ 45,698$ 1,495,698$ 2,970,000$ 485,625$ 3,455,625$
2017 Tax Allocation Refunding Bonds, Series A 2017 Tax Allocation Refunding Bonds, Series B
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
104
14. FUND BALANCE/NET POSITION DEFICIT AND EXPENDITURES IN EXCESS OF
APPROPRIATIONS
The following funds had expenditures in excess of appropriations:
The expenditures in excess of appropriations for General Fund was due to recording transfers from
General Fund reserves to the related internal service funds to eliminate recurring cash deficits, in effect
writing off interfund borrowings. Monrovia Nursery was increased payroll and landscaping costs. And
Measure R was related to a late transfer of gas tax.
15. 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, 2021, were as listed below:
Major Funds
General Fund 5,836,379$
Non-Major Governmental Funds:
Special Revenue Funds:
Monrovia Nursery 28,232
Measure R 146,277
Amount
Major Governmental Fund:
General Fund 215,664$
Total Major Governmental Funds 215,664
Non-Major Governmental Funds:
Special Revenue Funds:
Measure M 2,844
Proposition A 1,426
Proposition C 82,001
Community Development Block Grant 12,163
Grant & Seizure Fund 33,252
Total Non-Major Governmental Funds 131,686
Total Governmental Fund Encumbrances 347,350$
.
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
105
16. PRIOR PERIOD ADJUSTMENTS
The City recorded a prior period adjustments to adjust prior year receivables, to reclassify unearned fees
collected in advance, reallocate prior year expenses to different funding sources, and to implement GASB
Statement No. 84, Fiduciary Activities.
17. SUBSEQUENT EVENTS
The City of Azusa owns a ±8,206 square foot vacant commercial facility located at 890 The Promenade. In
January 2022, a tenant lease agreement was entered into with the Los Angeles County Metropolitan
Transportation Authority (LA Metro) to lease the facility. LA Metro is proposing to use the premises for
a System Security and Law Enforcement office to support the operation of the Gold Line rail system, and
has further requested the City build-to-suit the facility per a mutually agreed-upon space plan.
The initial term of the Lease Agreement with LA Metro is for a period of ten years, with four (4) five-year
options to renew (extension periods), provided that the Tenant is not in default of the Lease. Extension
periods must be requested in writing no less than nine months prior to lease termination. Term initiation
will commence upon LA Metro’s move-in to the premises, which is anticipated for October, 2022.
Fund Balance/Fund Balance/
Net Position Net Position
as Previously Cash and Other Unearned as
Reported Investments Receivables Assets Revenues Restated
Government-Wide Statements
Governmental Activities (29,443,321)$ 64,125$ (377,231)$ 9,639$ (83,211)$ (29,829,999)$
Business-type Activities 119,091,947$ (64,125)$ -$ 5,442$ -$ 119,033,264$
Fund Statements:
General Fund 33,900,453$ 585,958$ (294,020)$ 9,639$ (83,211)$ 34,118,819$
Non-major governmental:
Grant and Seizure Special Revenue 899,356$ 10,768$ (83,211)$ -$ -$ 826,913$
Proposition A Special Revenue 2,452,693$ (12,375)$ -$ -$ -$ 2,440,318$
Proposition C Special Revenue 2,454,060$ 12,375$ -$ -$ -$ 2,466,435$
Employee Benefits Special Revenue 532,601$ (532,601)$ -$ -$ -$ -$
Light Enterprise Fund 60,369,815$ (64,125)$ -$ 5,442$ -$ 60,311,132$
Custodial Fund -$ 16,410,228$ -$ -$ -$ 16,410,228$
Prior Period Adjustment
City of Azusa
Notes to Basic Financial Statements
For the year ended June 30, 2021
106
17. SUBSEQUENT EVENTS, Continued
Base rent is set for year-one at $1.40 per rentable square foot (8,206 sf), and will increase by 3% every
twelve months, ranging from $137,860.80 in year one to $180,203.76 in year ten. The total estimated costs
for this project equate to $3,111,498 for tenant improvements, which include labor, materials, furniture,
fixtures and equipment (FF&E), associated professional service costs, fees, and built-in contingencies. The
City of Azusa’s total contribution to project costs is capped at $30/sf, for a total of $246,180 from the
General Fund. LA Metro will reimburse the City for costs beyond the $30/sf threshold, totaling $2,865,318
to be paid to the City over three phases of construction. Over the long term, the City will receive lease
revenues of approximately $1,577,521 over the first 10 years beginning in October 2022.
In addition to the Base Rent, the LA Metro will pay all operating expenses incurred by the City in
connection with the ownership, operation, repair, restoration, and maintenance of the building and
premises for a 24/7 operation. These costs consist of taxes, insurance, utilities, fees for property
management company services, maintenance, repair and restoration of facilities, fixtures and equipment
within the building’s interior, and certain cleaning and maintenance. NNN operating expenses are
estimated to add an additional $1.1048/PSF to the lease cost per month, and combined with the initial
base monthly rent, amount to approximately $20,555 per month that LA Metro will pay the City. The City
shall be responsible for maintenance and repair of common areas and structural elements of the building.
During each term renewal period, a new Base Rent may be calculated using the then prevailing fair
market rental rate for the premises. The new Base Rent shall be determined by following a three-stage
negotiation process, whereby if the new Base Rent cannot be agreed upon in the current stage, the parties
will resort to the procedures set forth in the following stage(s). In the event both parties do not come to
an agreement on the new Base Rent before the Lease terminates, the new Base Rent shall be adjusted to a
higher amount equal to the current Base Rent plus the then-current Consumer Price Index (CPI) and an
additional 3% of the existing Base Rent.
Should the City decide to sell the premises while LA Metro is still leasing the building, the tenant shall
have a first opportunity to purchase at an amount that is acceptable to both parties.
107
REQUIRED
SUPPLEMENTARY INFORMATION
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
108
1. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – CALPERS
AGENT MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS*
Notes to Schedule:
* Intended to display information for ten years, additional years’ information will be displayed as it
becomes available.
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.
2020-19 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14
TOTAL PENSION LIABILITY
Service Cost 2,740,061$ 2,642,631$ 2,632,487$ 2,520,416$ 2,295,028$ 2,302,623$ 2,375,239$
Interest 11,151,551 10,746,822 10,139,454 9,773,270 9,381,992 8,989,759 8,658,209
Difference Between Expected and Actual Experience (273,598) 2,523,996 (525,331) (454,282) (892,890) (1,723,872) -
Changes of Assumptions - - (546,545) 8,401,425 - (2,292,502) -
Benefit Payments, Including Refunds of Employee Contributions (7,893,434) (7,114,634) (6,498,070) (5,814,688) (5,561,682) (4,975,226) (4,845,540)
Net Change in Total Pension Liability 5,724,580 8,798,815 5,201,995 14,426,141 5,222,448 2,300,782 6,187,908
Total Pension Liability - Beginning 158,816,024 150,017,209 144,815,214 130,389,073 125,166,625 122,865,843 116,677,935
Total Pension Liability - Ending (a)164,540,604$ 158,816,024$ 150,017,209$ 144,815,214$ 130,389,073$ 125,166,625$ 122,865,843$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 4,195,424$ 3,622,928$ 3,137,989$ 2,602,264$ 2,381,498$ 1,979,679$ 2,043,584$
Contributions - Employee 1,149,614 1,282,651 1,336,844 1,191,434 1,066,129 1,032,337 1,029,164
Difference in projected and actual earnings - - - - - - -
Plan to plan resource movement (769) 19,282 (263) (20) - (145) -
Net Investment Income 5,865,127 7,446,456 9,044,754 10,722,195 522,172 2,198,171 14,908,401
Benefit Payments, Including Refunds of Employee Contributions (7,893,434) (7,114,634) (6,498,070) (5,814,688) (5,561,682) (4,975,226) (4,845,540)
Other Changes in Fiduciary Net Position (167,054) (80,606) (482,393) (145,026) (60,872) (112,413) -
Net Change in Fiduciary Net Position 3,148,908 5,176,077 6,538,861 8,556,159 (1,652,755) 122,403 13,135,609
Plan Fiduciary Net Position - Beginning 118,498,704 113,322,627 106,783,766 98,227,607 99,880,362 99,757,959 86,622,350
Plan Fiduciary Net Position - Ending (b)121,647,612$ 118,498,704$ 113,322,627$ 106,783,766$ 98,227,607$ 99,880,362$ 99,757,959$
Plan Net Position Liability/(Asset) - Ending (a) - (b)42,892,992$ 40,317,320$ 36,694,582$ 38,031,448$ 32,161,466$ 25,286,263$ 23,107,884$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 73.93% 74.61% 75.54% 73.74% 75.33% 79.80% 81.19%
Covered Payroll 16,687,339$ 15,853,565$ 15,617,508$ 14,940,224$ 15,065,169$ 15,305,919$ 14,720,773$
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 257.04% 254.31% 234.96% 254.56% 213.48% 165.21% 156.97%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
109
2. SCHEDULE OF CONTRIBUTIONS – CALPERS AGENT MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS*
3. SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY – COST SHARING
MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS*
2021 2020 2019 2018 2017 2016 2015 2014
Misellaneous
Actuarially Required Contributions 4,656,725$ 4,195,424$ 3,628,442$ 3,143,487$ 2,602,264$ 2,381,498$ 1,979,679$ 2,043,584$
Contribution in Relation to the
Actuarially Required Contributions (45,628,370) (4,195,424) (3,628,442) (3,143,487) (2,602,264) (2,381,498) (1,979,679) (2,043,584)
Contribution Deficiency(Excess) (40,971,645) - - - - - - -
Covered Payroll 15,967,586$ 16,687,339$ 15,396,189$ 14,947,756$ 15,065,169$ 14,113,224$ 14,429,034$ 15,121,206$
Contributions as a Percentage of Covered Payroll 29.16% 25.14% 23.57% 21.03% 17.27% 16.87% 13.72% 13.51%
Note to Schedules
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.
Methods and assumptions used to determine contribution rates:
Valuation date : 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 6/30/2011
Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age
Amortization method: (1) (1) (1) (1) (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Market Value Market Value 15 Year
Smoothed
Market
Method
15 Year
Smoothed
Market
Method
Inflation: 2.50% 2.63% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases: (2)(2)(2)(2)(2)(2)(2)(2)
Investment rate of return: 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% 7.50%
Retirement age: (3)(3)(3)(3)(3)(3)(3)(3)
Mortality: (4)(4)(4)(4)(4)(4)(4)(4)
(1)Level percentage of payroll, closed
(2)Depending on age, service, and type of employment
(3)50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62
(4)
Fiscal year:
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS
Experience Study adopted by the CalPERS Board.
Measurement date:6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
Proportion of the net pension liability 0.37708% 0.36592% 0.35940% 0.34445% 0.34338% 0.33263% 0.31257%
Proportionate share of the net pension liability 41,027,719$ 37,495,554$ 34,632,337$ 34,160,281$ 29,713,239$ 22,831,275$ 19,449,591$
Covered payroll 5,858,623$ 4,698,150$ 4,561,311$ 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 700.30% 798.09% 759.26% 936.34% 500.16% 343.34% 306.63%
Plan's share of fiduciary net position as a percentage
of total pension liability 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
110
3. SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY – COST SHARING
MULTIPLE-EMPLOYER PLAN – LAST 10 YEARS, Continued
Notes to Schedule:
* Intended to display information for ten years, additional years’ information will be displayed as it
becomes available.
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.
4. SCHEDULE OF CONTRIBUTIONS – COST SHARING MULTIPLE-EMPLOYER PLAN – LAST 10
YEARS*
2021 2020 2019 2018 2017 2016 2015
Contractually required contribution (actuarially
determined)4,280,761$ 3,716,215$ 3,294,240$ 3,080,129$ 2,711,578$ 2,408,176$ 2,475,434$
Contribution in relation to the actuarially
determined contributions (43,611,890) (3,716,215) (3,294,240) (3,080,129) (2,711,578) (2,408,176) (2,475,434)
Contribution deficiency (excess)(39,331,129)$ -$ -$ -$ -$ -$ -$
Covered payroll 6,000,329$ 5,858,623$ 4,698,150$ 4,561,311$ 3,648,273$ 5,940,696$ 6,649,731$
Contributions as a percentage of covered payroll 726.82% 63.43% 70.12% 67.53% 74.32% 40.54% 37.23%
Note to Schedules
*Fiscal year 2015 was the 1st year of implementation, therefore only six years are shown.
Methods and assumptions used to determine contribution rates:
Valuation date :6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Actuarial cost method:Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age
Amortization method:(1)(1)(1)(1)(1)(1)(1)
Assets valuation method:Market Value Market Value Market Value Market Value Market Value Market Value 15 Year
Smoothed
Market Method
Inflation:2.50%2.63%2.75%2.75%2.75%2.75%2.75%
Salary increases:(2)(2)(2)(2)(2)(2)(2)
Investment rate of return:7.00%7.25%7.375%7.50%7.50%7.50%7.50%
Retirement age:(3)(3)(3)(3)(3)(3)(3)
Mortality:(4)(4)(4)(4)(4)(4)(4)
(1)Level percentage of payroll, closed
(2)Depending on age, service, and type of employment
(3)50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62
(4)Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the
CalPERS Board.
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
111
5. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – AMMA
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS*
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
2020 2019 2018 2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 127,682$ 123,963$ 120,352$ 91,040$ 88,388$ 102,116$
Interest 265,646 250,344 233,644 232,756 216,255 207,196
Effect of Economic/Demographics Gains or Losses 775,464 - (191,660) - (221,832) -
Effect of Assumption Changes or Inputs (330,627) - 204,190 - 131,142 -
Benefit Payments, Including Refunds of Employee Contributions (149,813) (135,620) (91,529) (75,963) (67,291) (83,368)
Net Change in Total Pension Liability 688,352 238,687 274,997 247,833 146,662 225,944
Total Pension Liability - Beginning 4,032,907 3,794,220 3,519,223 3,271,390 3,124,728 2,898,784
Total Pension Liability - Ending (a)4,721,259$ 4,032,907$ 3,794,220$ 3,519,223$ 3,271,390$ 3,124,728$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (149,813)$ (135,620)$ (91,529)$ (75,963)$ (67,291)$ (83,368)$
Contributions - Employer 210,857 195,062 205,227 201,498 172,625 138,866
Contributions - Employee 42,940 41,008 49,912 48,741 43,558 46,205
Net Investment Income 76,169 178,824 182,437 250,204 (6,961) 47,672
Administrative Expenses (9,408) (9,127) (8,933) (8,505) (11,509) (8,240)
Net Change in Fiduciary Net Position 170,745 270,147 337,114 415,975 130,422 141,135
Plan Fiduciary Net Position - Beginning 3,061,538 2,791,391 2,454,277 2,038,302 1,907,880 1,766,745
Plan Fiduciary Net Position - Ending (b)3,232,283$ 3,061,538$ 2,791,391$ 2,454,277$ 2,038,302$ 1,907,880$
Plan Net Position Liability/(Asset) - Ending (a) - (b)1,488,976$ 971,369$ 1,002,829$ 1,064,946$ 1,233,088$ 1,216,848$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 68.46%75.91%73.57%69.74%62.31%61.06%
Covered Payroll 2,521,600$ 1,640,350$ 2,233,000$ 1,937,372$ 1,880,944$ 2,128,243$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 59.05%59.22%44.91%54.97%65.56%57.18%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
112
6. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS –
EXECUTIVE PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS*
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
Measurement Period 2020 2019 2018 2017 2016 2015
TOTAL PENSION LIABILITY
Interest 199,069$ 198,591$ 194,748$ 206,088$ 201,357$ 176,286$
Effect of Economic/Demographics Gains or Losses 487,136 - (131,702) - 201,732 -
Effect of Assumption Changes or Inputs (358,113) - 177,244 - 106,795 -
Benefit Payments, Including Refunds of Employee Contributions (188,289) (194,071) (168,659) (139,808) (127,936) (125,424)
Net Change in Total Pension Liability 139,803 4,520 71,631 66,280 381,948 50,862
Total Pension Liability - Beginning 3,155,268 3,150,748 3,079,117 3,012,837 2,630,889 2,580,027
Total Pension Liability - Ending (a)3,295,071$ 3,155,268$ 3,150,748$ 3,079,117$ 3,012,837$ 2,630,889$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (188,289)$ (194,071)$ (168,659)$ (139,808)$ (127,936)$ (125,424)$
Contributions - Employer 173,084 188,693 110,296 124,997 97,284 78,751
Net Investment Income 25,202 64,229 75,114 112,249 (5,857) 26,218
Administrative Expenses (5,429) (5,397) (5,416) (4,982) (8,348) (5,569)
Net Change in Fiduciary Net Position 4,568 53,454 11,335 92,456 (44,857) (26,024)
Plan Fiduciary Net Position - Beginning 1,107,754 1,054,300 1,042,965 950,509 995,366 1,021,390
Plan Fiduciary Net Position - Ending (b)1,112,322$ 1,107,754$ 1,054,300$ 1,042,965$ 950,509$ 995,366$
Plan Net Position Liability/(Asset) - Ending (a) - (b)2,182,749$ 2,047,514$ 2,096,448$ 2,036,152$ 2,062,328$ 1,635,523$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 33.76%35.11%33.46%33.87%31.55%37.83%
Covered Payroll n/a 769,086$ 747,000$ 692,804$ 672,625$ 990,274$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll n/a 266.23% 280.65% 293.90% 306.61% 165.16%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
113
7. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – IBEW
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS*
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
Measurement Period 2020 2019 2018 2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 101,455$ 98,500$ 95,631$ 103,488$ 100,474$ 107,529$
Interest 256,241 244,368 220,449 223,883 210,235 199,129
Effect of Economic/Demographics Gains or Losses 1,065,861 - (18,551) - (61,026) -
Effect of Assumption Changes or Inputs (624,522) - 219,186 - 28,545 -
Benefit Payments, Including Refunds of Employee Contributions (162,585) (163,726) (139,841) (113,110) (124,197) (93,243)
Net Change in Total Pension Liability 636,450 179,142 376,874 214,261 154,031 213,415
Total Pension Liability - Beginning 3,920,722 3,741,580 3,364,706 3,150,445 2,996,414 2,782,999
Total Pension Liability - Ending (a)4,557,172$ 3,920,722$ 3,741,580$ 3,364,706$ 3,150,445$ 2,996,414$
PLAN FIDUCIARY NET POSITION
Benefit Payments, Including Refunds of Employee Contributions (162,585)$ (163,726)$ (139,841)$ (113,110)$ (124,197)$ (93,243)$
Contributions - Employer 233,728 247,341 199,529 207,056 214,921 153,146
Contributions - Employee 71,212 61,521 72,702 76,124 79,015 82,044
Net Investment Income 70,961 164,679 163,582 225,263 (4,679) 41,194
Administrative Expenses (9,216) (8,951) (8,682) (8,238) (10,938) (7,492)
Net Change in Fiduciary Net Position 204,100 300,864 287,290 387,095 154,122 175,649
Plan Fiduciary Net Position - Beginning 2,804,115 2,503,251 2,215,961 1,828,866 1,674,744 1,499,095
Plan Fiduciary Net Position - Ending (b)3,008,215$ 2,804,115$ 2,503,251$ 2,215,961$ 1,828,866$ 1,674,744$
Plan Net Position Liability/(Asset) - Ending (a) - (b)1,548,957$ 1,116,607$ 1,238,329$ 1,148,745$ 1,321,579$ 1,321,670$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 66.01%71.52%66.90%65.86%58.05%55.89%
Covered Payroll 4,577,390$ 3,076,052$ 3,635,000$ 3,805,104$ 4,117,972$ 4,060,559$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 33.84%36.30%34.07%30.19%32.09%32.55%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
114
8. SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – SEIU
PARS RETIREMENT ENHANCEMENT PLAN – LAST 10 YEARS*
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
2020 2019 2018 2017 2016 2015
TOTAL PENSION LIABILITY
Service Cost 21,632$ 21,002$ 20,390$ 16,140$ 15,670$ 18,174$
Interest 43,192 41,101 40,393 40,470 37,853 32,199
Effect of Economic/Demographics Gains or Losses 248,907 - (60,298) - 38,614 -
Effect of Assumption Changes or Inputs (23,300) - 34,766 - 9,089 -
Bene fit Payments, Including Refunds of
Employee Contributions (29,295) (31,800) (18,354) (16,780) (16,451) (13,203)
Net Change in Total Pension Liability 261,136 30,303 16,897 39,830 84,775 37,170
Total Pension Liability - Beginning 657,272 626,969 610,072 570,242 485,467 448,297
Total Pension Liability - Ending (a)918,408$ 657,272$ 626,969$ 610,072$ 570,242$ 485,467$
PLAN FIDUCIARY NET POSITION
Bene fit Payments, Including Refunds of
Employee Contributions (29,295)$ (31,800)$ (18,354)$ (16,780)$ (16,451)$ (13,203)$
Contributions - Employer 22,990 27,081 26,688 26,555 24,410 12,890
Contributions - Employee 20,797 23,319 28,696 28,554 26,100 25,312
Net Investment Income 12,515 30,060 29,408 39,629 (863) 7,232
Administrative Expenses (2,598) (2,425) (2,193) (1,808) (5,041) (1,510)
Net Change in Fiduciary Net Position 24,409 46,235 64,245 76,150 28,155 30,721
Plan Fiduciary Net Position - Beginning 505,074 458,839 394,594 318,444 290,289 259,568
Plan Fiduciary Net Position - Ending (b)529,483$ 505,074$ 458,839$ 394,594$ 318,444$ 290,289$
Plan Net Position Liability/(Asset) - Ending (a) - (b)388,925$ 152,198$ 168,130$ 215,478$ 251,798$ 195,178$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 57.65% 76.84% 73.18% 64.68% 55.84% 59.80%
Covered Payroll 578,238$ 582,987$ 649,000$ 561,325$ 544,976$ 620,510$
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 67.26% 26.11% 25.91% 38.39% 46.20% 31.45%
Measurement Period
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
115
9. SCHEDULE OF CONTRIBUTIONS –PARS RETIREMENT ENHANCEMENT PLANS – LAST 10
YEARS*
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
2021 2020 2019 2018 2017 2016 2015
AMMA Bargaining Group
Actuarially determined contribution 256,816$ 256,816$ 188,640$ 246,301$ 213,675$ 173,709$ 212,245$
Contribution in relation to the actuarially determined contributio (182,712) (195,062) (189,833) (205,227) (201,498) (172,526) (138,866)
Contribution deficiency (excess) 74,104$ 61,754$ (1,193)$ 41,074$ 12,177$ 1,183$ 73,379$
Covered payroll 3,090,003$ 2,233,183$ 1,640,350$ 2,233,183$ 1,937,372$ 1,880,944$ 2,128,243$
Contributions as a percentage of covered payroll 5.91%8.73% 11.57% 9.19% 10.40% 9.17% 6.52%
Executive/ Contract Bargaining Group
Actuarially determined contribution -$ 185,999$ 191,579$ 188,891$ 175,353$ 91,425$ 138,680$
Contribution in relation to the actuarially determined contributio - (188,693) (197,377) (110,296) (124,997) (97,284) (78,751)
Contribution deficiency (excess) -$ (2,694)$ (5,798)$ 78,595$ 50,356$ (5,859)$ 59,929$
Covered payroll n/a 746,686$ 769,086$ 746,686$ 692,804$ 672,625$ 990,274$
Contributions as a percentage of covered payroll n/a 25.27% 25.66% 14.77% 18.04% 14.46% 7.95%
IBEW Employees
Actuarially determined contribution 268,796$ 268,796$ 228,858$ 199,203$ 208,580$ 214,921$ 220,708$
Contribution in relation to the actuarially determined contributio (237,021) (247,341) (259,694) (199,529) (207,056) (214,921) (153,146)
Contribution deficiency (excess)31,775$ 21,455$ (30,836)$ (326)$ 1,524$ -$ 67,562$
Covered payroll 5,265,389$ 3,612,855$ 3,076,052$ 3,635,100$ 3,805,104$ 4,117,972$ 4,060,559$
Contributions as a percentage of covered payroll 4.50%6.85% 8.44% 5.49% 5.44% 5.22% 3.77%
SEIU Bargaining Group
Actuarially determined contribution 30,688$ 30,688$ 27,575$ 36,975$ 31,990$ 19,683$ 23,063$
Contribution in relation to the actuarially determined contributio (38,715) (27,081) (27,039) (26,688) (26,555) (24,410) (12,890)
Contribution deficiency (excess) (8,027)$ 3,607$ 536$ 10,287$ 5,435$ (4,727)$ 10,173$
Covered payroll 1,451,710$ 648,802$ 582,987$ 648,802$ 561,325$ 544,976$ 620,510$
Contributions as a percentage of covered payroll 2.67%4.17% 4.64% 4.11% 4.73% 4.48% 2.08%
Note to Schedule
Valuation date:6/30/2017
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
12.2% for 0 years of servi ce, reduced as the years
of service increased, to 3.5% for 30 or more years
of services
6.50%
67 yrs.
(1) Historical information is required only for measurement periods for which GASB 68 is applicable
Post-retirement: CalPERS 1997-2011 Healthy
Retiree Tables
Entry age
Level percentage of payroll, closed
9.5 years
5-year smoothed market
2.75%
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, 2021
116
10. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED RATIOS –
LAST 10 YEARS*
Notes to Schedule:
* Intended to display information for ten years, additional years’ information will be displayed as it becomes
available.
Benefit Changes: None.
Changes of Assumptions: The inflation assumption was updated from 2.50% to 2.75%, healthcare cost trend
rate was updated using the Society of Actuaries Getzen Model of Long-Run Medical Cost Trends,
demographic assumptions were updated to CalPERS 1997-2015 Experience Study, mortality improvement
scale was updated to Scale MP-2018, and participation assumption was updated for some bargaining groups
in fiscal year 2019. The discount rate was changed from 3.50 percent to 2.21 percent in fiscal year 2020. The
discount rate was changed from 2.21 percent to 2.16% in fiscal year 2021.
There are no assets accumulated in a trust that meets the criteria in paragraph 101, GASB codification, section
P52.134.D.
2021 2020 2019 2018 2017
Total OPEB liability
Service cost $ 2,795,291 $ 1,847,881 $ 1,809,103 $ 1,756,411 $ 1,705,253
Interest on the total pension liability 1,457,098 1,740,015 1,485,140 1,348,787 1,275,916
Differences between actual and expected
experience (4,193,319) - 1,960,757 - -
Changes in assumptions (1,916,795) 12,972,999 3,180,597
Changes in benefit terms - - - - -
Benefit payments (1,300,717) (1,281,210) (1,103,260) (933,743) (864,576)
Net changes (3,158,442) 15,279,685 7,332,337 2,171,455 2,116,593
Total OPEB liability - beginning of year 63,787,107 48,507,422 41,175,085 39,003,630 36,887,037
Total OPEB liability - end of year 60,628,665 63,787,107 48,507,422 41,175,085 $ 39,003,630
Covered-employee payroll $ 27,973,379 $ 30,787,234 $ 26,654,981 $ 20,340,713 $ 20,340,713
City's total OPEB liability as a percentage of
covered-employee payroll 216.74%207.19%181.98%202.43%191.75%
City of Azusa
Required Supplementary Information
For the year ended June 30, 2021
117
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 34,118,819$ 34,118,819$ 34,118,819$ -$
Resources (Inflows):
Taxes 36,364,999 39,225,729 44,048,688 4,822,959
Assessments 3,971,446 3,971,446 3,341,604 (629,842)
Licenses and permits 761,800 761,800 733,450 (28,350)
Intergovernmental 304,565 954,699 837,219 (117,480)
Charges for services 1,653,149 1,571,149 1,964,158 393,009
Use of money and property 763,375 640,335 (83,471) (723,806)
Fines and forfeitures 1,264,100 789,280 1,362,209 572,929
Contributions 5,000 5,000 13 (4,987)
Miscellaneous 45,000 45,000 152,190 107,190
Transfers in 1,548,097 1,548,097 1,548,097 -
Proceeds from debt issuance - 70,075,000 70,075,000 -
Proceeds from sale of capital assets - - 3,873 3,873
Amounts available for appropriations 80,800,350 153,706,354 158,101,849 4,395,495
Charges to Appropriations (Outflows):
General government
City Council 154,881 154,881 124,075 30,806
City Attorney 275,000 275,000 271,393 3,607
Administration 527,257 531,245 447,616 83,629
Promotion/Membership 23,320 23,320 70,725 (47,405)
City Clerk 620,697 620,697 603,730 16,967
Library Services - General 1,384,413 1,384,413 1,101,745 282,668
Library Services - Youth 31,430 108,535 108,544 (9)
Finance - Accounting 1,250,557 1,250,557 1,193,608 56,949
Cash Management 173,105 173,105 166,061 7,044
Purchasing 270,155 270,155 274,574 (4,419)
Printing Services 8,600 8,600 7,262 1,338
Human Resources 540,772 565,772 395,368 170,404
City-wide 3,287,079 1,908,172 4,074,021 (2,165,849)
Admin Services / Business Lic 5,404 5,404 4,054 1,350
Business License 268,446 288,059 151,789 136,270
Other - - 4,761 (4,761)
Public Safety
Police 20,294,620 20,354,620 18,865,731 1,488,889
Emergency Services 9,190 9,190 2,169 7,021
Police Department Contracts 1,281,417 1,171,417 863,257 308,160
INF 586,441 709,565 625,764 83,801
Community development
Planning 845,194 1,094,793 488,874 605,919
Building regulation 917,001 1,347,517 1,112,015 235,502
Code Enforcement 952,025 964,855 845,224 119,631
Other 316,200 449,459 7,502 441,957
Parks and recreation
Recreation 1,493,428 1,540,366 1,139,357 401,009
Parks and maintenance 2,260,021 2,362,810 2,175,909 186,901
Senior programs 269,559 290,043 103,195 186,848
Public works
Engineering Services 194,760 318,632 117,845 200,787
Graffiti Removal 133,227 137,037 162,701 (25,664)
Facilities Maintenance 718,395 740,963 678,960 62,003
Capital outlay 83,985 335,810 261,826 73,984
Debt service:
Principal retirement 593,946 3,500 40,943 (37,443)
Interest and fiscal charges 71,500 (3,500) 7,907 (11,407)
Cost of issuance - 485,938 485,938 -
Transfers out 7,917,121 5,920,627 14,653,493 (8,732,866)
Payment for CalPERS unfunded accrued liability - 69,582,774 69,582,774 -
Total charges to appropriations 47,759,146 115,384,331 121,220,710 (5,836,379)
Budgetary fund balance, June 30 33,041,204$ 38,322,023$ 36,881,139$ (1,440,884)$
Budget Amounts
118
SUPPLEMENTARY INFORMATION
119
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.
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.
Utility Mitigation
This fund is used to account for federal monies collected for utility mitigation activities.
120
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS, Continued:
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.
Fire Safety Special Revenue Fund
This fund is used to account for monies collected and restricted for fire safety activities.
Measure W-LA County-Safe Clean Water Program
This fund is used to account for restricted Los Angeles County Measure W 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.
121
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Community
Grant and State Development
Seizure Fund Gasoline Tax Proposition A Proposition C Block Grant
ASSETS
Pooled cash and investments 2,944,744$ 123,113$ 2,612,444$ 1,880,793$ -$
Receivables:
Accounts 493,335 738 101,589 7 88,427
Taxes 25,946 - - - -
Notes and loans - - - - 57,237
Accrued interest - - 830 576 -
Prepaid costs 75,153 - - 2,821 -
Restricted assets:
Cash and investments with fiscal agents - - - - -
Total assets 3,539,178$ 123,851$ 2,714,863$ 1,884,197$ 145,664$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 89,990$ 64,524$ 15,722$ 18,394$ 36,875$
Accrued liabilities 5,992 58,803 38,924 20,366 5,423
Unearned revenues 1,753,940 - - - -
Due to other funds - - - - 70,792
Total liabilities 1,849,922 123,327 54,646 38,760 113,090
DEFERRED INFLOW OF RESOURCES
Unavailable revenues 206,248 - 54,834 - 76,639
Total deferred inflow of resources 206,248 - 54,834 - 76,639
FUND BALANCES
Nonspendable:
Prepaid costs 75,153 - - 2,821 -
Restricted for:
Community development projects 1,276,848 - 2,605,383 1,842,616 -
Public safety 180,823 - - - -
Capital projects 25,338 524 - - -
Debt service - - - - -
Committed for:
Employee benefits - - - - -
Unassigned (75,154) - - - (44,065)
Total fund balances 1,483,008 524 2,605,383 1,845,437 (44,065)
Total liabilities, deferred inflows
of resources, and fund balances 3,539,178$ 123,851$ 2,714,863$ 1,884,197$ 145,664$
Special Revenue Funds
122
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee Utility
Nutrition Program Improvement Enforcement Nursery Benefits Mitigation Highway 39
138,584$ 693,711$ 284,887$ 595,036$ 176,660$ 2,000,000$ 1,816,134$ 1,619,875$
54,483 64,337 33,115 - - - - -
- - - - 16,379 - - -
- 226 - - - - - -
- 211 93 206 73 - - 533
- 179 - - - - - -
- - - - - - - -
193,067$ 758,664$ 318,095$ 595,242$ 193,112$ 2,000,000$ 1,816,134$ 1,620,408$
6,946$ 21,342$ 587$ -$ 1,386$ -$ -$ -$
7,945 12,447 - - 13,387 - - -
- - - 525,725 - - - -
- - - - - - - -
14,891 33,789 587 525,725 14,773 - - -
- - - - - - - -
- - - - - - - -
- 179 - - - - - -
178,176 724,696 - - - - - 1,620,408
- - - 69,517 - - - -
- - 317,508 - 178,339 - 1,816,134 -
- - - - - - - -
- - - - - 2,000,000 - -
- - - - - - - -
178,176 724,875 317,508 69,517 178,339 2,000,000 1,816,134 1,620,408
193,067$ 758,664$ 318,095$ 595,242$ 193,112$ 2,000,000$ 1,816,134$ 1,620,408$
Special Revenue Funds
123
City of Azusa
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Rosedale
Traffic
LACMTA Measure R AB939 Fee Mitigation RMR SB1
ASSETS
Pooled cash and investments -$ -$ 286,230$ 536,652$ 1,637,373$
Receivables:
Accounts 8,042 9,891 8,420 - -
Taxes - - - - 167,757
Notes and loans - - (75) - -
Accrued interest - - - 177 492
Prepaid costs - - - - -
Restricted assets:
Cash and investments with fiscal agents - 930,224 - - -
Total assets 8,042$ 940,115$ 294,575$ 536,829$ 1,805,622$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ 6,012$ 2,792$ -$ -$
Accrued liabilities - 5,874 7,577 - 1
Unearned revenues - - - - -
Due to other funds 103,376 145,163 - - -
Total liabilities 103,376 157,049 10,369 - 1
DEFERRED INFLOW OF RESOURCES
Unavailable revenues - - - - -
Total deferred inflow of resources - - - - -
FUND BALANCES
Nonspendable
Prepaid costs - - - - -
Restricted for
Community development projects - - - - -
Public safety - - - - -
Capital projects - 783,066 284,206 536,829 1,805,621
Debt service - - - - -
Committed for:
Employee benefits - - - - -
Unassigned (95,334) - - - -
Total fund balances (95,334) 783,066 284,206 536,829 1,805,621
Total liabilities, deferred inflows
of resources, and fund balances 8,042$ 940,115$ 294,575$ 536,829$ 1,805,622$
Special Revenue Funds
124
Debt Service
Funds
Public Total Nonmajor
Capital Public Works Financing Governmental
Measure M Fire Safety Measure W Park in-lieu Projects Endowment Authority Funds
2,330,843$ 299,399$ 606,108$ 153,124$ -$ 91,471$ 509,892$ 21,337,073$
- - - - - - - 862,384
- - - - - - - 210,082
- - - - - - - 57,388
729 - - 50 - 30 - 4,000
- - - - - - - 78,153
- - - - - - 25,481 955,705
2,331,572$ 299,399$ 606,108$ 153,174$ -$ 91,501$ 535,373$ 23,504,785$
67$ -$ -$ -$ -$ 4,001$ -$ 268,638$
1,274 - 217 - - - - 178,230
- - - - - - - 2,279,665
- - - - 541 - - 319,872
1,341 - 217 - 541 4,001 - 3,046,405
- - - - - - - 337,721
- - - - - - - 337,721
- - - - - - - 78,153
- - - - - - - 8,248,127
- 299,399 - - - 87,500 - 637,239
2,330,231 - 605,891 153,174 - - - 8,836,861
- - - - - - 535,373 535,373
- - - - - - - 2,000,000
- - - - (541) - - (215,094)
2,330,231 299,399 605,891 153,174 (541) 87,500 535,373 20,120,659
2,331,572$ 299,399$ 606,108$ 153,174$ -$ 91,501$ 535,373$ 23,504,785$
Capital Projects FundsSpecial 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, 2021
Community
Grant and State Development
Seizure Fund Gasoline Tax Proposition A Proposition C Block Grant
REVENUES:
Taxes 70,033$ -$ 1,032,423$ 856,358$ -$
Licenses and permits - - - - -
Intergovernmental 3,053,274 1,079,250 139,165 75,461 476,210
Charges for services 449 - 4,388 1,391 -
Use of money and property 12,212 - 11,934 10,232 -
Contributions 14 - - - -
Miscellaneous 31,310 - - - -
Total revenues 3,167,292 1,079,250 1,187,910 943,442 476,210
EXPENDITURES:
Current:
General government 135,186 - - - -
Public safety 377,029 - - - -
Community development 215,188 - - - 513,744
Parks and recreation 51,800 56,611 - - -
Public works 136 1,199,582 1,014,211 489,520 -
Capital outlay 1,731,858 32,288 8,634 1,076,645 -
Debt service:
Principal repayment - - - - -
Interest and fiscal charges - - - - -
Total expenditures 2,511,197 1,288,481 1,022,845 1,566,165 513,744
REVENUE OVER
(UNDER) EXPENDITURES 656,095 (209,231) 165,065 (622,723) (37,534)
OTHER FINANCING
SOURCES (USES):
Transfers in - 209,230 - - -
Transfers out - - - - -
Proceeds from sale of capital assets - - - 1,725 -
Total other financing sources (uses)- 209,230 - 1,725 -
Net change in fund balances 656,095 (1) 165,065 (620,998) (37,534)
FUND BALANCES:
Beginning of year, as restated 826,913 525 2,440,318 2,466,435 (6,531)
End of year 1,483,008$ 524$ 2,605,383$ 1,845,437$ (44,065)$
Special Revenue Funds
126
Supplemental
Senior Public Benefit Air Quality Law Monrovia Employee Utility
Nutrition Program Improvement Enforcement Nursery Benefits Mitigation Highway 39
-$ -$ -$ -$ -$ -$ -$ -$
- - - - - - - -
401,778 - 80,902 147,972 - - - -
- 1,034,848 1,439 - 726,527 - - -
- 4,687 1,280 2,977 23,782 - - 7,862
4,470 - - - - - - -
- - - - - - - -
406,248 1,039,535 83,621 150,949 750,309 - - 7,862
- 279,738 - - 40,000 - - -
- - - 147,972 - - - -
- 1,190,356 - - - - - -
420,823 - - - 4,520 - - -
- - 7,382 - 448,933 - - -
- - - - - - 1,141,469 -
- - - - - - - -
- - - - - - - -
420,823 1,470,094 7,382 147,972 493,453 - 1,141,469 -
(14,575) (430,559) 76,239 2,977 256,856 - (1,141,469) 7,862
78,626 - - - - 2,000,000 - -
- - - - (319,945) - - -
- - - - - - - -
78,626 - - - (319,945) 2,000,000 - -
64,051 (430,559) 76,239 2,977 (63,089) 2,000,000 (1,141,469) 7,862
114,125 1,155,434 241,269 66,540 241,428 - 2,957,603 1,612,546
178,176$ 724,875$ 317,508$ 69,517$ 178,339$ 2,000,000$ 1,816,134$ 1,620,408$
Special Revenue Funds
127
City of Azusa
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2021
Rosedale
Traffic
LACMTA Measure R AB939 Fee Mitigation RMR SB1
REVENUES:
Taxes -$ 705,231$ -$ -$ -$
Licenses and permits - - - - -
Intergovernmental - 1,502,468 - - 920,587
Charges for services - - - - -
Use of money and property - 491 200,977 2,604 6,637
Contributions - - - - -
Miscellaneous - - - - -
Total revenues - 2,208,190 200,977 2,604 927,224
EXPENDITURES:
Current:
General government - - - - -
Public safety - - - - -
Community development - - - - -
Parks and recreation - - - - -
Public works - 471,772 243,206 - -
Capital outlay - 1,844,666 - - 744,970
Debt service:
Principal repayment - 115,000 - - -
Interest and fiscal charges - 120,752 - - -
Total expenditures - 2,552,190 243,206 - 744,970
REVENUE OVER
(UNDER) EXPENDITURES - (344,000) (42,229) 2,604 182,254
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Proceeds from sale of capital assets - - - - -
Total other financing sources (uses)- - - - -
Net change in fund balances - (344,000) (42,229) 2,604 182,254
FUND BALANCES:
Beginning of year, as restated (95,334) 1,127,066 326,435 534,225 1,623,367
End of year (95,334)$ 783,066$ 284,206$ 536,829$ 1,805,621$
Special Revenue Funds
128
Debt Service
Funds
Public Total Nonmajor
Capital Public Works Financing Governmental
Measure M Fire Safety Measure W Park in-lieu Projects Endowment Authority Funds
728,722$ -$ 606,108$ -$ -$ -$ -$ 3,998,875$
- - - 13,800 - - - 13,800
- - - - - - - 7,877,067
- - - - - - - 1,769,042
9,501 - - 731 - 442 57 296,406
- - - - - - - 4,484
- - - - - - - 31,310
738,223 - 606,108 14,531 - 442 57 13,990,984
- - - - - - - 454,924
- 5,574,633 - - - - - 6,099,634
- - - - - - - 1,919,288
- - - 7,200 - - - 540,954
7,425 - 217 - - - - 3,882,384
37,367 - - - - - - 6,617,897
- - - - - - 845,000 960,000
- - - - - - 19,339 140,091
44,792 5,574,633 217 7,200 - - 864,339 20,615,172
693,431 (5,574,633) 605,891 7,331 - 442 (864,282) (6,624,188)
- 4,940,013 - - - - 864,340 8,092,209
- - - - - - - (319,945)
- - - - - - - 1,725
- 4,940,013 - - - - 864,340 7,773,989
693,431 (634,620) 605,891 7,331 - 442 58 1,149,801
1,636,800 934,019 - 145,843 (541) 87,058 535,315 18,970,858
2,330,231$ 299,399$ 605,891$ 153,174$ (541)$ 87,500$ 535,373$ 20,120,659$
Capital Projects FundsSpecial Revenue Funds
129
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Grants and Seizure
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 826,913$ 826,913$ 826,913$ -$
Resources (Inflows):
Taxes - - 70,033 70,033
Intergovernmental 336,335 1,516,164 3,053,274 1,537,110
Charges for services 5,000 5,000 449 (4,551)
Use of money and property 4,750 4,750 12,212 7,462
Contributions - - 14 14
Miscellaneous - - 31,310 31,310
Amounts available for appropriations 1,172,998 2,352,827 3,994,205 1,641,378
Charges to Appropriations (Outflows):
General government - 305,569 135,186 170,383
Public Safety 241,730 627,103 377,029 250,074
Community development 26,280 351,280 215,188 136,092
Parks and recreation - 199,500 51,800 147,700
Public works - 125 136 (11)
Capital outlay 20,000 1,225,227 1,731,858 (506,631)
Total charges to appropriations 288,010 2,708,804 2,511,197 197,607
Budgetary fund balance, June 30 884,988$ (355,977)$ 1,483,008$ 1,838,985$
Budget Amounts
130
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
State Gasoline Tax
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 525$ 525$ 525$ -$
Resources (Inflows):
Intergovernmental 1,279,753 1,279,753 1,079,250 (200,503)
Transfers in - - 209,230 209,230
Amounts available for appropriations 1,280,278 1,280,278 1,289,005 8,727
Charges to Appropriations (Outflows):
Parks and recreation 59,000 59,000 56,611 2,389
Public works 1,554,973 1,554,973 1,199,582 355,391
Capital outlay 33,075 42,595 32,288 10,307
Total charges to appropriations 1,647,048 1,656,568 1,288,481 368,087
Budgetary fund balance, June 30 (366,770)$ (376,290)$ 524$ 376,814$
Budget Amounts
131
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition A
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 2,440,318$ 2,440,318$ 2,440,318$ -$
Resources (Inflows):
Taxes 1,081,561 1,081,561 1,032,423 (49,138)
Intergovernmental 168,500 168,500 139,165 (29,335)
Charges for services 17,000 17,000 4,388 (12,612)
Use of money and property 30,000 30,000 11,934 (18,066)
Amounts available for appropriations 3,737,379 3,737,379 3,628,228 (109,151)
Charges to Appropriations (Outflows):
Public works 1,025,512 1,071,942 1,014,211 57,731
Capital outlay - 30,060 8,634 21,426
Total charges to appropriations 1,025,512 1,102,002 1,022,845 79,157
Budgetary fund balance, June 30 2,711,867$ 2,635,377$ 2,605,383$ (29,994)$
Budget Amounts
132
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Proposition C
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 2,466,435$ 2,466,435$ 2,466,435$ -$
Resources (Inflows):
Taxes 897,127 897,127 856,358 (40,769)
Intergovernmental 72,000 72,000 75,461 3,461
Charges for services 17,500 17,500 1,391 (16,109)
Use of money and property 30,000 30,000 10,232 (19,768)
Proceeds from sale of capital assets - - 1,725 1,725
Amounts available for appropriations 3,483,062 3,483,062 3,411,602 (71,460)
Charges to Appropriations (Outflows):
Public works 581,443 668,917 489,520 179,397
Capital outlay - 1,753,682 1,076,645 677,037
Total charges to appropriations 581,443 2,422,599 1,566,165 856,434
Budgetary fund balance, June 30 2,901,619$ 1,060,463$ 1,845,437$ 784,974$
Budget Amounts
133
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (6,531)$ (6,531)$ (6,531)$ -$
Resources (Inflows):
Intergovernmental 411,079 489,904 476,210 (13,694)
Amounts available for appropriations 404,548 483,373 469,679 (13,694)
Charges to Appropriations (Outflows):
Community development 460,628 667,130 513,744 153,386
Total charges to appropriations 460,628 667,130 513,744 153,386
Budgetary fund balance, June 30 (56,080)$ (183,757)$ (44,065)$ 139,692$
Budget Amounts
134
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Senior Nutrition
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 114,125$ 114,125$ 114,125$ -$
Resources (Inflows):
Intergovernmental 232,422 323,370 401,778 78,408
Contributions 75,242 75,242 4,470 (70,772)
Transfers in 9,562 9,562 78,626 69,064
Amounts available for appropriations 431,351 522,299 598,999 76,700
Charges to Appropriations (Outflows):
Parks and recreation 317,226 492,716 420,823 71,893
Total charges to appropriations 317,226 492,716 420,823 71,893
Budgetary fund balance, June 30 114,125$ 29,583$ 178,176$ 148,593$
Budget Amounts
135
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Benefit Program
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,155,434$ 1,155,434$ 1,155,434$ -$
Resources (Inflows):
Charges for services 1,054,810 1,054,810 1,034,848 (19,962)
Use of money and property 15,000 15,000 4,687 (10,313)
Amounts available for appropriations 2,225,244 2,225,244 2,194,969 (30,275)
Charges to Appropriations (Outflows):
General government 337,194 307,194 279,738 27,456
Community development 1,035,500 1,155,500 1,190,356 (34,856)
Capital outlay - 1,115,220 - 1,115,220
Total charges to appropriations 1,372,694 2,577,914 1,470,094 1,107,820
Budgetary fund balance, June 30 852,550$ (352,670)$ 724,875$ 1,077,545$
Budget Amounts
136
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Air Quality Improvement
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 241,269$ 241,269$ 241,269$ -$
Resources (Inflows):
Intergovernmental 65,800 65,800 80,902 15,102
Charges for services 1,500 1,500 1,439 (61)
Use of money and property 2,500 2,500 1,280 (1,220)
Amounts available for appropriations 311,069 311,069 324,890 13,821
Charges to Appropriations (Outflows):
Public works 71,270 92,466 7,382 85,084
Capital outlay - 5,300 - 5,300
Total charges to appropriations 71,270 97,766 7,382 90,384
Budgetary fund balance, June 30 239,799$ 213,303$ 317,508$ 104,205$
Budget Amounts
137
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Supplemental Law Enforcement
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 66,540$ 66,540$ 66,540$ -$
Resources (Inflows):
Intergovernmental 110,000 110,000 147,972 37,972
Use of money and property 3,000 3,000 2,977 (23)
Amounts available for appropriations 179,540 179,540 217,489 37,949
Charges to Appropriations (Outflows):
Public Safety 56,300 155,680 147,972 7,708
Total charges to appropriations 56,300 155,680 147,972 7,708
Budgetary fund balance, June 30 123,240$ 23,860$ 69,517$ 45,657$
Budget Amounts
138
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Monrovia Nursery
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 241,428$ 241,428$ 241,428$ -$
Resources (Inflows):
Charges for services 703,800 703,800 726,527 22,727
Use of money and property 3,500 3,500 23,782 20,282
Amounts available for appropriations 948,728 948,728 991,737 43,009
Charges to Appropriations (Outflows):
General government 40,000 40,000 40,000 -
Parks and recreation 3,810 3,810 4,520 (710)
Public works 421,411 421,411 448,933 (27,522)
Transfers out 319,945 319,945 319,945 -
Total charges to appropriations 785,166 785,166 813,398 (28,232)
Budgetary fund balance, June 30 163,562$ 163,562$ 178,339$ 14,777$
Budget Amounts
139
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Employee Benefits
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated -$ -$ -$ -$
Resources (Inflows):
Transfers in 1,062,475 - 2,000,000 2,000,000
Amounts available for appropriations 1,062,475 - 2,000,000 2,000,000
Charges to Appropriations (Outflows):
General government 1,062,475 - - -
Total charges to appropriations 1,062,475 - - -
Budgetary fund balance, June 30 -$ -$ 2,000,000$ 2,000,000$
Budget Amounts
140
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Utility Mitigation
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,957,603$ 2,957,603$ 2,957,603$ -$
Resources (Inflows):
Transfers in 800,000 800,000 - (800,000)
Amounts available for appropriations 3,757,603 3,757,603 2,957,603 (800,000)
Charges to Appropriations (Outflows):
Public works - 50,000 - 50,000
Capital outlay - 2,284,352 1,141,469 1,142,883
Total charges to appropriations - 2,334,352 1,141,469 1,192,883
Budgetary fund balance, June 30 3,757,603$ 1,423,251$ 1,816,134$ 392,883$
Budget Amounts
141
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Highway 39
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,612,546$ 1,612,546$ 1,612,546$ -$
Resources (Inflows):
Use of money and property 25,000 25,000 7,862 (17,138)
Amounts available for appropriations 1,637,546 1,637,546 1,620,408 (17,138)
Charges to Appropriations (Outflows):
Capital outlay - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 1,637,546$ 1,637,546$ 1,620,408$ (17,138)$
Budget Amounts
142
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
LACMTA
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (95,334)$ (95,334)$ (95,334)$ -$
Resources (Inflows):
Intergovernmental - - - -
Amounts available for appropriations (95,334) (95,334) (95,334) -
Charges to Appropriations (Outflows):
Capital outlay - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 (95,334)$ (95,334)$ (95,334)$ -$
Budget Amounts
143
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure R
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,127,066$ 1,127,066$ 1,127,066$ -$
Resources (Inflows):
Taxes 672,914 672,914 705,231 32,317
Intergovernmental - 1,564,540 1,502,468 (62,072)
Use of money and property 45,000 45,000 491 (44,509)
Amounts available for appropriations 1,844,980 3,409,520 3,335,256 (74,264)
Charges to Appropriations (Outflows):
Public works 253,817 256,317 471,772 (215,455)
Capital outlay - 2,029,252 1,844,666 184,586
Debt service:
Principal retirement - - 115,000 (115,000)
Interest and fiscal charges 117,244 120,344 120,752 (408)
Total charges to appropriations 371,061 2,405,913 2,552,190 (146,277)
Budgetary fund balance, June 30 1,473,919$ 1,003,607$ 783,066$ (220,541)$
Budget Amounts
144
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
AB939 Fee
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 326,435$ 326,435$ 326,435$ -$
Resources (Inflows):
Use of money and property 223,285 223,285 200,977 (22,308)
Amounts available for appropriations 549,720 549,720 527,412 (22,308)
Charges to Appropriations (Outflows):
Public works 309,304 309,304 243,206 66,098
Total charges to appropriations 309,304 309,304 243,206 66,098
Budgetary fund balance, June 30 240,416$ 240,416$ 284,206$ 43,790$
Budget Amounts
145
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Rosedale Traffic Mitigation
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 534,225$ 534,225$ 534,225$ -$
Resources (Inflows):
Use of money and property 9,775 9,775 2,604 (7,171)
Amounts available for appropriations 544,000 544,000 536,829 (7,171)
Charges to Appropriations (Outflows):
Capital outlay - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 544,000$ 544,000$ 536,829$ (7,171)$
Budget Amounts
146
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
RMR SB1
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,623,367$ 1,623,367$ 1,623,367$ -$
Resources (Inflows):
Intergovernmental 969,141 969,141 920,587 (48,554)
Use of money and property 10,000 10,000 6,637 (3,363)
Amounts available for appropriations 2,602,508 2,602,508 2,550,591 (51,917)
Charges to Appropriations (Outflows):
Capital outlay - 2,330,000 744,970 1,585,030
Total charges to appropriations - 2,330,000 744,970 1,585,030
Budgetary fund balance, June 30 2,602,508$ 272,508$ 1,805,621$ 1,533,113$
Budget Amounts
147
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure M
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,636,800$ 1,636,800$ 1,636,800$ -$
Resources (Inflows):
Taxes 762,558 762,558 728,722 (33,836)
Use of money and property 15,000 15,000 9,501 (5,499)
Amounts available for appropriations 2,414,358 2,414,358 2,375,023 (39,335)
Charges to Appropriations (Outflows):
Public works 63,879 63,879 7,425 56,454
Capital outlay - 1,074,889 37,367 1,037,522
Total charges to appropriations 63,879 1,138,768 44,792 1,093,976
Budgetary fund balance, June 30 2,350,479$ 1,275,590$ 2,330,231$ 1,054,641$
Budget Amounts
148
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Fire Safety
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 934,019$ 934,019$ 934,019$ -$
Resources (Inflows):
Charges for services 100,000 - - -
Transfers in 5,874,032 4,940,013 4,940,013 -
Amounts available for appropriations 6,908,051 5,874,032 5,874,032 -
Charges to Appropriations (Outflows):
Public safety 5,874,032 5,874,032 5,574,633 299,399
Total charges to appropriations 5,874,032 5,874,032 5,574,633 299,399
Budgetary fund balance, June 30 1,034,019$ -$ 299,399$ 299,399$
Budget Amounts
149
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure W
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Taxes 620,000 620,000 606,108 (13,892)
Amounts available for appropriations 620,000 620,000 606,108 (13,892)
Charges to Appropriations (Outflows):
Public works - 506,108 217 505,891
Capital outlay - 100,000 - 100,000
Total charges to appropriations - 606,108 217 605,891
Budgetary fund balance, June 30 620,000$ 13,892$ 605,891$ 591,999$
Budget Amounts
150
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Park In-lieu
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 145,843$ 145,843$ 145,843$ -$
Resources (Inflows):
Licenses and permits 35,000 35,000 13,800 (21,200)
Use of money and property 1,000 1,000 731 (269)
Amounts available for appropriations 181,843 181,843 160,374 (21,469)
Charges to Appropriations (Outflows):
Parks and recreation - 7,200 7,200 -
Capital outlay - 30,000 - 30,000
Total charges to appropriations - 37,200 7,200 30,000
Budgetary fund balance, June 30 181,843$ 144,643$ 153,174$ 8,531$
Budget Amounts
151
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Projects
For the year ended June 30, 2021
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
152
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Works Endowment
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 87,058$ 87,058$ 87,058$ -$
Resources (Inflows):
Use of money and property 1,000 1,000 442 (558)
Amounts available for appropriations 88,058 88,058 87,500 (558)
Charges to Appropriations (Outflows):
Capital outlay - - - -
Total charges to appropriations - - - -
Budgetary fund balance, June 30 88,058$ 88,058$ 87,500$ (558)$
Budget Amounts
153
City of Azusa
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Financing Authority
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 535,315$ 535,315$ 535,315$ -$
Resources (Inflows):
Use of money and property - - 57 57
Transfers in 868,215 868,215 864,340 (3,875)
Amounts available for appropriations 1,403,530 1,403,530 1,399,712 (3,818)
Charges to Appropriations (Outflows):
Debt service:
Principal retirement 845,000 845,000 845,000 -
Interest and fiscal charges 23,215 23,215 19,339 3,876
Total charges to appropriations 868,215 868,215 864,339 3,876
Budgetary fund balance, June 30 535,315$ 535,315$ 535,373$ 58$
Budget Amounts
154
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.
155
City of Azusa
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2021
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
ASSETS
Current:
Cash and investments 5,157,993$ 316,064$ 5,474,057$
Receivables:
Accounts 283,505 567,924 851,429
Accrued interest 1,621 - 1,621
Prepaid costs 4,515 - 4,515
Restricted cash with fiscal agent 1,376,550 - 1,376,550
Total current assets 6,824,184 883,988 7,708,172
Noncurrent:
Capital assets - net of accumulated depreciation 8,586,959 - 8,586,959
Total noncurrent assets 8,586,959 - 8,586,959
Total assets 15,411,143 883,988 16,295,131
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 2,125,097 - 2,125,097
Total deferred outflows of resources 2,125,097 - 2,125,097
LIABILITIES
Current:
Accounts payable 43,689$ 668,040$ 711,729
Accrued liabilities 51,230 - 51,230
Deposits payable 53 - 53
Compensated absences - due within one year 70,321 - 70,321
Bonds and notes payable - due within one year 440,000 - 440,000
Total current liabilities 605,293 668,040 1,273,333
Noncurrent:
Compensated absences - due in more than one year 49,868 - 49,868
Bonds and note payable - due in more than one year 1,930,000 - 1,930,000
Net pension liability 1,882,470 - 1,882,470
Total noncurent liabilities 3,862,338 - 3,862,338
Total liabilities 4,467,631 668,040 5,135,671
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 19,661 - 19,661
Total deferred inflows of resources 19,661 - 19,661
NET POSITION
Net investment in capital assets 6,216,959 - 6,216,959
Restricted for debt service 1,376,550 - 1,376,550
Unrestricted 5,455,439 215,948 5,671,387
Total net position 13,048,948$ 215,948$ 13,264,896$
Business-Type Activities - Enterprise Funds
156
City of Azusa
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Non-Major Enterprise Funds
For the year ended June 30, 2021
Total
Sewer/ Refuse Non-major
Wastewater Contract Enterprise
Fund Fund Funds
OPERATING REVENUES:
Sales and service charges 3,485,957$ 4,152,430$ 7,638,387
Total operating revenues 3,485,957 4,152,430 7,638,387
OPERATING EXPENSES:
Administration and general 1,098,626 - 1,098,626
Treatment 629,833 - 629,833
Refuse collection - 4,030,503 4,030,503
Depreciation expense 526,776 - 526,776
Total operating expenses 2,255,235 4,030,503 6,285,738
OPERATING INCOME (LOSS)1,230,722 121,927 1,352,649
NONOPERATING REVENUES (EXPENSES):
Taxes - 740,284 740,284
Interest revenue 24,798 - 24,798
Interest expense (92,215) - (92,215)
Special franchise fees (70,130) - (70,130)
Total nonoperating revenues (expenses)(137,547) 740,284 602,737
INCOME (LOSS) BEFORE TRANSFERS 1,093,175 862,211 1,955,386
Transfer out (195,615) (922,190) (1,117,805)
Change in net position 897,560 (59,979) 837,581
Net position:
Beginning of year 12,151,388 275,927 12,427,315
End of year 13,048,948$ 215,948$ 13,264,896$
Business-Type Activities - Enterprise Funds
157
City of Azusa
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the year ended June 30, 2021
Total
Sewer/ Refuse Non-major
Wastewater Contract Proprietary
Fund Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 3,608,794$ 4,171,915$ 7,780,709$
Cash paid to suppliers for goods and services (884,472) (4,012,462) (4,896,934)
Cash paid to employees for services (2,586,037) - (2,586,037)
Net cash provided by (used in) operating activities 138,285 159,453 297,738
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers out (195,615) (922,190) (1,117,805)
Net cash provided by noncapital financing activities (195,615) (922,190) (1,117,805)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Principal paid on capital debt (420,000) - (420,000)
Interest paid on capital debt (92,215) - (92,215)
Special franchise fees paid (70,130) - (70,130)
Taxes - 740,284 740,284
Net cash provided by (used in) capital and related financing
activities (1,244,824) 740,284 (504,540)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 31,593 - 31,593
Net cash provided by (used in) investing activities 31,593 - 31,593
Net increase (decrease) in cash and cash equivalents (1,270,561) (22,453) (1,293,014)
CASH AND CASH EQUIVALENTS:
Beginning of year 7,805,104 338,517 8,143,621
End of year 6,534,543$ 316,064$ 6,850,607$
FINANCIAL STATEMENT PRESENTATION:
Cash and investments 5,157,993$ 316,064$ 5,474,057$
Cash with fiscal agent 1,376,550 - 1,376,550
Total 6,534,543$ 316,064$ 6,850,607$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)1,230,722$ 121,927$ 1,352,649$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 526,776 - 526,776
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable 122,877 19,485 142,362
(Increase) decrease in prepaid expense (3,759) - (3,759)
(Increase) decrease in deferred pension related outflows (1,866,763) - (1,866,763)
Increase (decrease) in accounts payable (26,197) 18,041 (8,156)
Increase (decrease) in accrued liabilities 18,787 - 18,787
Increase (decrease) in compensated absences 30,660 - 30,660
Increase (decrease) in net pension liability 125,847 - 125,847
Increase (decrease) in deferred pension related inflows (20,625) - (20,625)
Total adjustments (1,092,437) 37,526 (1,054,911)
Net cash provided by (used in) by operating activities 138,285$ 159,453$ 297,738$
Business-Type Activities - Enterprise Funds
158
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.
159
City of Azusa
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Consumer Central
Services Self-Insurance Services
ASSETS
Current:
Cash and investments 1,600$ 1,500,000$ 3,309$
Receivables:
Accounts 510,774 294,792 96
Accrued interest 14,049 - -
Prepaid costs 6,841 27,014 -
Total current assets 533,264 1,821,806 3,405
Noncurrent:
Capital assets - net of accumulated depreciation 1,050,001 - 22,594
Total noncurrent assets 1,050,001 - 22,594
Total assets 1,583,265 1,821,806 25,999
DEFERRED OUTFLOWS OF RESOURCES
Deferred OPEB related items 250,476 - -
Deferred pension related items 1,290,405 23,707 -
Total deferred outflows of resources 1,540,881 23,707 -
LIABILITIES
Current:
Accounts payable 101,353 237,724 561
Accrued liabilities 162,281 (4,792) -
Due to other governments - - -
Due to other funds 498,974 - -
Accrued compensated absences - due within one year 248,923 19,702 -
Accrued claims and judgements - due within one year - 2,653,799 -
Total current liabilities 1,011,531 2,906,433 561
Noncurrent:
Accrued compensated absences - due in more than one year 49,554 - -
Accrued claims and judgements - due in more than one year - 909,416 -
Total OPEB liability 1,212,573 - -
Net pension liability 6,237,280 157,243 -
Total noncurent liabilities 7,499,407 1,066,659 -
Total liabilities 8,510,938 3,973,092 561
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 216,523 679 -
Deferred OPEB related items 105,909 - -
Total deferred inflows of resources 322,432 679 -
NET POSITION
Net investment in capital assets 1,050,001 - 22,594
Unrestricted (6,759,225) (2,128,258) 2,844
Total net position (5,709,224)$ (2,128,258)$ 25,438$
160
Equipment
Replacement IT Services Totals
470,868$ 171,864$ 2,147,641$
- - 805,662
- - 14,049
67,237 114,544 215,636
538,105 286,408 3,182,988
1,269,242 - 2,341,837
1,269,242 - 2,341,837
1,807,347 286,408 5,524,825
- - 250,476
- 555,190 1,869,302
- 555,190 2,119,778
408,768 162,234 910,640
- 52,096 209,585
- 63 63
- - 498,974
- 100,639 369,264
- - 2,653,799
408,768 315,032 4,642,325
- 90,932 140,486
- - 909,416
- - 1,212,573
- 3,039,587 9,434,110
- 3,130,519 11,696,585
408,768 3,445,551 16,338,910
- 65,625 282,827
- - 105,909
- 65,625 388,736
1,269,242 - 2,341,837
129,337 (2,669,578) (11,424,880)
1,398,579$ (2,669,578)$ (9,083,043)$
161
City of Azusa
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds
For the year ended June 30, 2021
Consumer Central
Services Self-Insurance Services
OPERATING REVENUES:
Sales and service charges 6,410,662$ 2,395,307$ -$
Miscellaneous 206 - -
Total operating revenues 6,410,868 2,395,307 -
OPERATING EXPENSES:
Administration and general 5,940,771 2,474,087 -
Source of supply 103,552 - -
Claims expense 428,254 196,922 -
Depreciation expense 62,928 - 1,117
Total operating expenses 6,535,505 2,671,009 1,117
OPERATING INCOME (LOSS)(124,637) (275,702) (1,117)
NONOPERATING REVENUES (EXPENSES):
Interest revenue - - -
Loss on disposal of capital assets - - -
Gain on disposal of capital assets 8,388 - -
Total nonoperating revenues (expenses)8,388 - -
INCOME (LOSS) BEFORE TRANSFERS (116,249) (275,702) (1,117)
Transfer in 157,335 4,423,728 -
Transfer out (544,759) - -
Change in net position (503,673) 4,148,026 (1,117)
Net position:
Beginning of year, as restated (5,205,551) (6,276,284) 26,555
End of year (5,709,224)$ (2,128,258)$ 25,438$
162
Equipment
Replacement IT Services Totals
-$ 1,842,135$ 10,648,104$
- - 206
- 1,842,135 10,648,310
690,963 2,071,846 11,177,667
- - 103,552
- - 625,176
86,226 - 150,271
777,189 2,071,846 12,056,666
(777,189) (229,711) (1,408,356)
(945) - (945)
(9,303) - (9,303)
- - 8,388
(10,248) - (1,860)
(787,437) (229,711) (1,410,216)
2,491,323 - 7,072,386
- - (544,759)
1,703,886 (229,711) 5,117,411
(305,307) (2,439,867) (14,200,454)
1,398,579$ (2,669,578)$ (9,083,043)$
163
City of Azusa
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
Consumer Central
Services Self-Insurance Services
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 6,595,506$ 2,395,307$ -$
Cash paid to suppliers for goods and services (3,261,561) (3,360,186) -
Cash paid to employees for services (2,896,991) (75,765) -
Net cash provided by (used in) operating activities 436,954 (1,040,644) -
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash receipts from other funds - (1,883,084) -
Cash disbursements to other funds (387,424) 4,423,728 -
Cash receipts from grants (22,046) - -
Net cash provided by noncapital financing activities (409,470) 2,540,644 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Acquisition and construction of capital assets (81,525) - -
Proceeds from sale of capital assets 4,979 - -
Net cash provided by (used in) capital and related financing activities (76,546) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 50,662 - -
Net cash provided by (used in) investing activities 50,662 - -
Net increase (decrease) in cash and cash equivalents 1,600 1,500,000 -
CASH AND CASH EQUIVALENTS:
Beginning of year - - 3,309
End of year 1,600$ 1,500,000$ 3,309$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss)(124,637)$ (275,702)$ (1,117)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 62,928 - 1,117
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable 184,638 - -
(Increase) decrease in prepaid expense (6,841) 785,156 -
(Increase) decrease in deferred OPEB related outflows 48,958 - -
(Increase) decrease in deferred pension related outflows (431,961) (2,145) -
Increase (decrease) in accounts payable (18,004) (129,322) -
Increase (decrease) in accrued liabilities (3,659) (10,168) -
Increase (decrease) in claims and judgements - (1,432,126) -
Increase (decrease) in compensated absences 6,037 16,962 -
Increase (decrease) in total OPEB liability (63,169) - -
Increase (decrease) in net pension liability 585,148 9,442 -
Increase (decrease) in deferred pension related inflows 91,607 (2,741) -
Increase (decrease) in deferred OPEB related inflows 105,909 - -
Total adjustments 561,591 (764,942) 1,117
Net cash provided by (used in) by operating activities 436,954$ (1,040,644)$ -$
164
Equipment
Replacement IT Services Totals
-$ 1,842,135$ 10,832,948$
(422,697) (1,035,878) (8,080,322)
- (854,508) (3,827,264)
(422,697) (48,251) (1,074,638)
(759,292) - (2,642,376)
2,491,323 - 6,527,627
- - (22,046)
1,732,031 - 3,863,205
(837,521) - (919,046)
- - 4,979
(837,521) - (914,067)
(945) - 49,717
(945) - 49,717
470,868 (48,251) 1,924,217
- 220,115 223,424
470,868$ 171,864$ 2,147,641$
(777,189)$ (229,711)$ (1,408,356)$
86,226 - 150,271
- - 184,638
(21,083) 7,435 764,667
- - 48,958
- (137,506) (571,612)
289,349 58,037 200,060
- 5,561 (8,266)
- -(1,432,126)
- 4,538 27,537
- -(63,169)
- 240,839 835,429
- 2,493 91,359
- - 105,909
354,492 181,460 333,718
(422,697)$ (48,251)$ (1,074,638)$
165
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Water - Enterprise Fund
For the year ended June 30, 2021
Water
OPERATING REVENUES:
Residential sales 13,887,537$
Commercial sales 5,209,594
Industrial sales 1,919,228
Other sales 1,793,961
Fees 520,249
Other revenue 3,603,671
Total operating revenues 26,934,240
OPERATING EXPENSES:
Production 10,170,152
Transmission and distribution 3,108,365
Customer accounting and sales 3,480,293
Uncollectible accounts 5,857
Administration and general 350,669
Depreciation expense 3,845,559
Total operating expenses 20,960,895
OPERATING INCOME (LOSS)5,973,345
NONOPERATING REVENUES (EXPENSES):
Interest revenue 118,662
Interest expense (1,693,212)
Special franchise fees (469,099)
Gain on disposal of capital assets 7,950
Total nonoperating revenues (expenses)(2,035,699)
INCOME (LOSS) BEFORE TRANSFERS 3,937,646
Transfer out (26,635)
Change in net position 3,911,011
Net position:
Beginning of year 51,500,368
End of year 55,411,379$
166
City of Azusa
Supplemental Statement of Revenues, Expenses, and Changes in Fund Net Position
Light - Enterprise Fund
For the year ended June 30, 2021
Light
OPERATING REVENUES:
Sale/electricity - residential 14,692,995$
Sale/electricity - commercial and industrial 19,213,902
Sale/electricity - other 1,330,664
Sale/electricity - resale 2,663,345
Other revenue 2,740,612
Total operating revenues 40,641,518
OPERATING EXPENSES:
Purchase power 19,412,649
Transmission/dispatching 3,660,132
Operation and maintenance 4,505,931
Uncollectible accounts 11,659
Administration and general 8,356,353
Depreciation expense 1,518,222
Total operating expenses 37,464,946
OPERATING INCOME (LOSS)3,176,572
NONOPERATING REVENUES (EXPENSES):
Interest revenue 97,291
Interest expense (87,277)
Special franchise fees (3,575,360)
Total nonoperating revenues (expenses)(3,565,346)
INCOME (LOSS) BEFORE TRANSFERS (388,774)
Transfer out (50,055)
Change in net position (438,829)
Net position:
Beginning of year 60,311,132
End of year 59,872,303$
167
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168
Pages
Financial Trends
170-179
Revenue Capacity
180-193
Debt Capacity
194-202
Demographic and Economic Information
203-207
Operating Information
208-211
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 annual comprehensive 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.
169
Last Ten Fiscal Years (accrual basis of accounting)
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets 28,862,696$ 29,086,566$ 29,959,431$ 28,121,302$
Restricted 5,306,039 8,800,537 9,222,166 10,658,744
Unrestricted 23,447,281 18,107,479 (7,774,851) (46,416,171)
Total governmental
activities net position 57,616,016$ 55,994,582$ 31,406,746$ (7,636,125)$
Business-type activities:
Net investment in capital assets 60,564,169$ 55,086,846$ 58,465,869$ 45,617,124$
Restricted 10,845,193 11,554,302 9,845,901 15,085,506
Unrestricted 53,464,644 55,694,676 46,533,746 42,093,086
Total business-type
activities net position 124,874,006$ 122,335,824$ 114,845,516$ 102,795,716$
Primary government:
Net investment in capital assets 89,426,865$ 84,173,412$ 88,425,300$ 73,738,426$
Restricted 16,151,232 20,354,839 19,068,067 25,744,250
Unrestricted 76,911,925 73,802,155 38,758,895 (4,323,085)
Total primary government
net position 182,490,022$ 178,330,406$ 146,252,262$ 95,159,591$
Source: City of Azusa Finance Department
Source: ACFR State of Net Position
CITY OF AZUSA
Table 1 - Net Position by Component
Fiscal Year
170
2016 2017 2018 2019 2020 2021
33,586,894$ 33,818,379$ 35,435,990$ 35,457,264$ 37,408,295$ 42,264,754$
12,664,389 11,262,725 11,653,156 13,301,354 15,197,634 17,295,606
(47,761,262) (65,540,615) (71,783,787) (75,050,931) (82,049,250) (82,854,685)
(1,509,979)$ (20,459,511)$ (24,694,641)$ (26,292,313)$ (29,443,321)$ (23,294,325)$
56,985,265$ 50,924,797$ 52,197,779$ 53,360,644$ 62,764,524$ $70,312,605
11,448,778 16,722,108 16,307,140 16,784,663 16,991,779 6,113,465
36,790,964 38,640,042 41,228,368 45,814,285 39,335,644 46,413,284
105,225,007$ 106,286,947$ 109,733,287$ 115,959,592$ 119,091,947$ 122,839,354$
90,572,159$ 84,743,176$ 87,633,769$ 88,817,908$ 100,172,819$ $112,577,359
24,113,167 27,984,833 27,960,296 30,086,017 32,189,413 23,409,071
(10,970,298) (26,900,573) (30,555,419) (29,236,646) (42,713,606) (36,441,401)
103,715,028$ 85,827,436$ 85,038,646$ 89,667,279$ 89,648,626$ 99,545,029$
C
:
Fiscal Year
171
2012 2013 2014 2015
Program Revenue:
Governmental activities:
Charges for services
General government 3,090,304$ 2,304,290$ 3,919,876$ 3,517,810$
Public Safety 721,032 705,140 829,054 741,551
Community development 2,615,631 2,831,860 3,296,987 3,044,683
Parks and recreation 1,046,584 1,090,771 1,181,561 1,226,392
Public Works 838,958 476,506 525,343 961,875
Operating grants and contributions 3,267,287 2,121,638 3,836,479 13,926,073
Capital grants and contributions 137,102 2,988,760 442,727 398,905
Total governmental activities
program revenues 11,716,898 12,518,965 14,032,027 23,817,289
Business-type activities:
Charges for services
Water 20,062,118 21,604,435 21,762,242 21,515,397
Light 40,962,648 42,377,694 45,001,748 46,222,264
Sewer/Wastewater 2,223,876 2,480,008 2,566,676 2,636,707
Refuse contract 2,976,946 2,954,842 3,058,956 3,145,396
Operating grants and contributions - - - -
Total business-type activities
program revenues 66,225,588 69,416,979 72,389,622 73,519,764
Total primary government
program revenues 77,942,486$ 81,935,944$ 86,421,649$ 97,337,053$
Expenses:
Governmental activities:
General government 10,537,722$ 7,168,707$ 7,169,710$ 7,834,391$
Public safety 20,449,077 20,077,868 21,082,420 21,279,644
Community development 3,272,401 3,053,950 2,569,284 2,384,308
Parks and recreation 4,146,245 3,453,469 3,752,518 3,878,961
Public works 8,818,083 4,173,502 5,356,694 5,019,152
Interest on long-term debt 2,244,315 471,835 1,330,555 699,155
Total governmental activities
expenses 49,467,843 38,399,331 41,261,181 41,095,611
Business-type activities:
Water 19,364,355 19,199,120 18,345,227 21,497,271
Light 39,115,161 44,040,193 45,011,550 44,328,679
Sewer/Wastewater 2,083,756 4,828,680 2,434,295 2,368,124
Refuse contract 2,851,882 2,835,041 2,938,255 3,042,337
Total business-type activities
expenses 63,415,154 70,903,034 68,729,327 71,236,411
Total primary government
program expenses 112,882,997$ 109,302,365$ 109,990,508$ 112,332,022$
Net revenues (expenses):
Governmental activities (37,750,945) (25,880,366) (27,229,154) (17,278,322)
Business-type activities 2,810,434 (1,486,055) 3,660,295 2,283,353
Total net revenues (expenses)(34,940,511) (27,366,421) (23,568,859) (14,994,969)
Source: ACFR Statement of Activities
CITY OF AZUSA
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis
Fiscal Year
172
2016 2017 2018 2019 2020 2021
4,157,243$ 4,822,316$ 5,065,921$ 6,365,067$ 7,609,852$ 6,557,183$
821,281 774,218 649,929 1,403,390 2,343,224 963,977
2,463,012 3,094,335 3,162,591 3,303,062 2,569,245 3,151,396
1,188,778 487,842 478,140 437,829 344,432 189,473
739,521 833,440 875,283 965,868 878,053 882,848
6,435,839 4,014,559 6,999,678 6,114,947 7,986,715 8,917,365
328,662 935,622 1,384,675 2,094,896 2,424,903 2,013,344
16,134,336 14,962,332 18,616,217 20,685,059 24,156,424 22,675,586
20,317,053 20,785,465 22,028,440 22,249,594 24,348,594 26,934,240
40,464,630 41,404,427 36,620,020 41,202,574 39,975,498 40,641,518
2,679,660 2,750,999 2,979,516 3,133,857 3,292,951 3,485,957
3,465,932 3,697,476 3,885,635 3,941,215 4,119,397 4,152,430
- 667,619 704,965 714,750 763,180 740,284
66,927,275 69,305,986 66,218,576 71,241,990 72,499,620 75,954,429
83,061,611$ 84,268,318$ 84,834,793$ 91,927,049$ 96,656,044$ 98,630,015$
10,945,471$ 11,183,394$ 12,216,266$ 14,252,142$ 14,858,996$ 12,007,362$
22,689,580 24,610,769 28,290,550 28,234,043 33,034,073 30,091,441
2,605,120 3,170,213 3,312,408 3,355,295 3,892,609 5,718,091
4,546,965 4,365,600 4,745,891 4,761,394 5,077,503 5,580,230
5,331,169 4,404,636 5,522,426 7,954,532 9,015,108 6,648,325
517,395 361,493 278,689 253,667 225,826 145,134
46,635,700 48,096,105 54,366,230 58,811,073 66,104,115 60,190,583
19,429,769 20,511,527 22,538,051 23,608,977 24,608,822 23,140,183
41,383,802 39,464,774 33,269,209 34,562,979 36,579,394 41,202,365
2,131,684 2,220,602 2,624,377 2,344,737 2,705,943 2,430,044
3,342,897 3,533,695 3,735,613 3,734,667 4,086,865 4,034,579
66,288,152 65,730,598 62,167,250 64,251,360 67,981,024 70,807,171
112,923,852$ 113,826,703$ 116,533,480$ 123,062,433$ 134,085,139$ 130,997,754
(30,501,364) (33,133,773) (35,750,013) (38,126,014) (41,947,691) (37,521,075)
639,123 3,575,388 4,051,326 6,990,630 4,518,596 5,147,258
(29,862,241) (29,558,385) (31,698,687) (31,135,384) (37,429,095) (32,373,817)
Fiscal Year
173
2012 2013 2014 2015
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes, general purpose 9,856,354$ 8,312,351$ 8,023,547$ 8,531,515$
Transient occupancy taxes 210,923 224,359 223,675 261,815
Sales tax 6,234,614 6,904,400 7,183,809 7,530,257
Franchise taxes 6,355,828 6,526,496 6,757,708 7,328,977
Business licenses taxes 1,865,195 1,983,634 1,922,139 2,008,916
Utility users tax 3,250,469 3,305,545 3,441,178 3,594,092
Other taxes 1,272,967 1,963,904 1,763,038 2,058,967
Motor vehicle in lieu-unrestricted 420,126 25,224 20,876 -
Investment income 1,284,484 166,674 (423,898) 353,285
Other general revenues (50,068) 279,447 759,132 629,507
59,933,832 - - (4,113,065)
Transfers 1,082,262 1,309,808 1,535,996 1,458,028
Total governmental activities 91,716,986 31,001,842 31,207,200 29,642,294
Business-type activities:
Property taxes, general purpose 555,225 556,161 542,409 574,179
Investment income 257,653 115,380 300,515 378,713
Gain on sale of assets (1,966,003) (3,690) -
Transfers (1,082,262) (1,309,808) (1,535,996) (1,458,028)
Miscellaneous 884,535 359,573 399,293 224,680
Total business-type activities (1,350,852) (282,384) (293,779) (280,456)
Total general revenues 90,366,134 30,719,458 30,913,421 29,361,838
Changes in net position:
Governmental activities 53,966,041 5,121,476 3,978,046 12,363,972
Business-type activities 1,459,582 (1,768,439) 3,366,516 2,002,897
Total primary government 55,425,623$ 3,353,037$ 7,344,562$ 14,366,869$
Source: City of Azusa Finance Department
Source: ACFR Statement of Activities (page 2, General Revenues & Transfers Schedule)
CITY OF AZUSA
Table 2 - Changes in Net Position (Continue
Last Ten Fiscal Years (accrual basis)
Extraordinary gain/(loss on dissolution
of redevelopment agency
Fiscal Year
174
2016 2017 2018 2019 2020 2021
9,134,084$ 10,719,463$ 11,122,669$ 11,722,603$ 12,520,153$ 14,418,224$
347,965 366,579 719,318 869,899 765,096 796,912
8,001,941 5,516,848 5,665,876 6,316,359 6,817,957 12,520,285
7,575,506 6,893,264 6,747,947 7,082,356 7,059,663 7,514,190
1,995,000 2,238,439 2,208,309 2,065,327 2,067,693 2,226,483
3,266,383 3,329,293 3,032,095 3,255,562 3,267,346 3,379,352
1,851,142 1,702,902 1,602,546 1,556,157 1,488,465 1,865,248
- - - - - -
183,908 460,691 (202,455) 609,862 859,705 (372,227)
1,709,757 1,504,953 111,705 1,034,504 1,086,770 120,285
- - - - - -
1,652,338 1,739,277 2,031,610 1,866,900 2,607,313 1,581,919
35,718,024 34,471,709 33,039,620 36,379,529 38,540,161 44,050,671
630,981 - - - - -
532,303 512,838 1,045,895 1,087,005 1,221,072 240,751
- - - - - -
(1,652,338) (1,739,277) (2,031,610) (1,866,900) (2,607,313) (1,581,919)
2,347,066 - - - - -
1,858,012 (1,226,439) (985,715) (779,895) (1,386,241) (1,341,168)
37,576,036 33,245,270 32,053,905 35,599,634 37,153,920 42,709,503
5,216,660 1,337,936 (2,710,393) (1,743,485) (3,407,530) 6,535,674
2,497,135 2,348,949 3,065,611 6,210,735 3,132,355 3,806,090
7,713,795$ 3,686,885$ 355,218$ 4,467,250$ (275,175)$ 10,341,764$
Fiscal Year
175
Table 3 - Fund Balances of Governmental Funds
General fund: 2012 2013 2014 2015
Nonspendable 20,951,468$ 20,993,673$ 20,927,944$ 16,794,925$
Unassigned (5,817,312) (4,690,928) (509,996) 2,752,257
Total general fund: 15,134,156$ 16,302,745$ 20,417,948$ 19,547,182$
Grants and Seizure:
Nonspendable
Restricted
Unassigned
Total grants and seizure:
All other governmental funds:
Nonspendable 8,038$ 23,729$ 11,363$ 10,431$
Restricted 11,062,074 9,005,070 9,222,166 10,499,020
Committed ----
Unassigned (187,467) (376,870) (125,576) (12,478)
Total all other governmental funds:10,882,645$ 8,651,929$ 9,107,953$ 10,496,973$
Grants and Seizure was reclassified to Governmental Fund in fiscal year 2015-16.
Sources: City of Azusa Finance Division
CAFR Balance Sheet Governmental Funds
CITY OF AZUSA
Last Ten Fiscal Years (modified accrual basis)
Fiscal Year
176
2016 2017 2018 2019 2020 2021
17,319,446$ 14,315,813$ 14,247,791$ 9,342,604$ 9,228,259$ 8,740,737$
5,833,733 10,748,092 8,175,057 18,008,711 24,672,194 28,140,402
23,153,179$ 25,063,905$ 22,422,848$ 27,351,315$ 33,900,453$ 36,881,139$
8,730$ 2,891$ -$ -$ -$ -$
- 1,609,588.00 - - - -
(2,459,180.00) (420,193.00) - - - -
(2,450,450)$ 1,192,286$ -$ -$ -$ -$
4,428$ 3,074$ 4,204$ 6,441$ 6,666$ 78,153$
12,659,961 13,166,548 15,603,843 16,337,353 18,205,022 18,257,600
- - 498,066 498,066 1,466,620 2,000,000
(35,499) (499,998) (358,442) 1,682,866 (102,406) (215,094)
12,628,890$ 12,669,624$ 15,747,671$ 18,524,726$ 19,575,902$ 20,120,659$
Fiscal Year
177
Table 4 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
2012 2013 2014 2015
Revenues:
Taxes 29,353,626$ 29,180,382$ 29,266,387$ 31,314,539$
Assessments 2,201,117 1,605,028 2,216,830 1,299,713
Licenses and permits 1,270,221 1,369,901 1,586,117 1,600,109
Intergovernmental 3,482,499 2,856,210 4,469,748 4,674,688
Charges for services 3,399,276 3,288,109 4,396,994 4,647,255
Investment income 872,118 157,022 131,515 346,266
Fines and forfeitures 978,829 989,616 1,343,318 1,343,809
Contributions 109,255 64,461 84,870 10,864,485
Miscellaneous 1,492,038 384,382 870,199 678,623
Total Revenues 43,158,979 39,895,111 44,365,978 56,769,487
Expenditures:
Current:
General government 10,070,713 7,168,707 6,762,467 6,684,724
Public safety 20,379,672 20,077,868 20,877,090 21,779,069
Community development 3,223,201 3,053,950 2,564,915 2,364,558
Parks and recreation 3,770,465 3,453,469 3,561,491 3,589,952
Public works 7,358,644 4,173,502 4,245,273 4,033,352
Capital Outlay 1,554,151 2,348,624 2,204,482 1,725,176
Debt service:
Principal retirement 2,615,717 1,479,367 1,706,996 12,160,286
Interest and fiscal charges 2,537,665 471,835 401,265 417,459
- - - -
Total Expenditures 51,510,228 42,227,322 42,323,979 52,754,576
Excess (Deficiency) of revenues
over (under) expenditures (8,351,249) (2,332,211) 2,041,999 4,014,911
Other Financing Sources (Uses):
Capital lease financing - - - -
Transfer in 5,900,632 6,003,156 6,310,394 6,174,749
Transfer out (4,818,370) (4,705,827) (4,777,269) (5,569,235)
Notes and loans issued 1,305,892 - - -
Other financing sources - - - -
Special Item - - - -
Total Other Financing Sources
(Uses) 2,388,154 1,297,329 1,533,125 605,514
Extraordinary gain/(loss) on dissolution
of redevelopment agency 10,087,999 - - (4,113,065)
Net change in fund balances 4,124,904$ (1,034,882)$ 3,575,124$ 507,360$
Debt service as a percentage of
noncapital expenditures 10.3% 4.9% 5.3% 24.6%
Source: City of Azusa Finance Department
Bond issuance costs
CITY OF AZUSA
Fiscal Year
178
2016 2017 2018 2019 2020 2021
32,172,021$ 34,549,619$ 35,537,492$ 37,784,665$ 38,934,050$ 48,047,563$
1,875,271 1,941,549 2,232,012 2,612,037 2,547,233 3,341,604
1,096,325 1,167,805 1,164,736 1,128,547 786,793 747,250
3,635,890 6,317,682 4,134,939 5,848,721 6,113,774 8,714,286
4,505,844 3,775,160 3,641,642 4,297,902 6,385,202 3,733,200
442,987 990,976 308,488 1,814,430 1,572,459 212,935
1,328,383 1,068,510 1,124,080 1,447,695 1,383,846 1,362,209
99,594 78,836 103,502 75,669 79,740 4,497
1,759,473 1,563,941 162,787 1,216,960 1,146,990 183,500
46,915,788 51,454,078 48,409,678 56,226,626 58,950,087 66,347,044
7,545,443 10,919,440 9,846,360 9,408,809 9,328,388 9,454,251
22,490,820 22,560,287 25,727,339 24,740,726 27,199,160 26,456,555
2,588,161 2,970,565 3,017,805 3,079,943 3,419,525 4,372,903
4,212,160 3,916,250 4,161,675 4,109,326 3,984,832 3,959,414
4,304,379 4,286,018 4,205,386 5,134,171 4,628,255 4,841,890
6,433,318 1,128,736 3,486,632 3,358,548 4,964,647 6,879,723
1,230,000 1,420,000 1,604,111 444,393 468,553 1,002,554
562,530 405,392 344,203 260,901 229,866 146,387
- - - - - 485,938
49,366,811 47,606,688 52,393,511 50,536,817 54,223,226 57,599,615
(2,451,023) 3,847,390 (3,983,833) 5,689,809 4,727,861 8,747,429
- - 162,000 -
6,839,073 7,852,410 8,636,279 8,259,865 9,922,671 9,640,306
(5,316,340) (6,113,133) (6,604,669) (6,392,965) (7,315,358) (14,973,438)
3,570,000 - - - 5,598
168,899 4,307 1,034,927 - 8,618 70,075,000
- - - - - (69,582,774)
5,261,632 1,743,584 3,228,537 1,866,900 2,615,931 (4,835,308)
- - - -
2,810,609$ 5,590,974$ (755,296)$ 7,556,709$ 7,343,792$ 3,912,121$
4.2%3.9%4.0%1.5%1.4%2.3%
Fiscal Year
179
City of Azusa
Table 5 - Light Department
Electricity Sold by Type of Customer
Last Ten Fiscal Years
Fiscal Year Residential
Commercial/
Industrial Other Total
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$
2019 13,032,871 21,504,981 1,467,800 36,005,652$
2020 12,371,785 18,669,444 1,218,595 32,259,824$
2021 13,537,533 17,302,300 1,224,516 32,064,349$
Source: City of Azusa Light & Water Department
Type of Customer
180
City of Azusa
Table 6 - Electricity Rates
Last Ten Fiscal Years
Fiscal Monthly Rate per Rate per
Year Ended Base 0 - 250 >250
June 30 Rate kWh kWh
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
2019 5.80 0.1091 0.1487
2020 5.80 0.1091 0.1487
2021 5.80 0.1091 0.1487
NOTE:
Source: City of Azusa Light & Water Department
Rates are based on residential meter, which is the standard household meter size. There is an additional
charge for excess-use rate above normal demand.
181
Table 7 - 10 Largest Electrical Customers
2012 2013 2014 2015
Percentage Percentage Percentage Percentage
of Total of Total of Total of Total
Light Light Light Light Light Light Light Light
Light Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 1,741,024$ 4.913% 1,780,989$ 4.965% 1,802,237$ 4.943% 1,825,551$ 4.697%
Artisan Screen Process 301,378 0.851%546,126 1.498% 477,290 1.228%
Azusa MRFTS 597,615 1.537%
Azusa USD 896,318 2.530% 856,373 2.387% 883,569 2.423% 902,905 2.323%
Buena Vista Food Prod 329,687 0.930% 333,594 0.930% 357,445 0.980% 382,480 0.984%
California Amforge Corp 651,233 1.815%
Calmat Cite 2353-P3
City of Azusa 1,045,326 2.950% 1,206,165 3.362% 1,347,507 3.696% 1,228,641 3.161%
City of Glendora 679,753 1.895% 613,336 1.682% 479,889 1.235%
Costco Wholesale Corp 613,230 1.731% 642,560 1.791% 646,887 1.774%
LA County Metro Transportation Authority
Morris Partnership
Northrop Grumman 468,774 1.323% 366,623 1.022% 482,780 1.324% 466,673 1.201%
S & S Foods LLC 1,386,170 3.912% 1,584,047 4.416% 1,679,420 4.606% 1,645,159 4.233%
T H Molding Corporation 401,075 1.132%
Verizon Wireless Inc 894,493 2.524% 1,064,241 2.967% 1,205,326 3.306% 1,357,641 3.493%
Total 8,077,475$ 22.796% 9,165,578$ 25.550% 9,564,633$ 26.233% 9,363,844$ 24.090%
Source: City of Azusa Light & Water Department
City of Azusa
Last Ten Fiscal Years
Fiscal Year
182
2016 2017 2018 2019 2020 2021
Percentage Percentage Percentage Percentage Percentage Percentage
of Total of Total of Total of Total of Total of Total
Light Light Light Light Light Light Light Light Light Light Light Light
Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
1,745,792$ 4.867% 1,717,597$ 4.662% 1,671,228$ 5.014% 1,583,534$ 4.398% 1,535,257$ 4.759% 1,077,304$ 3.360%
-
587,778 1.639% 589,515 1.600% 591,552 1.775% 567,922 1.577% 515,256 1.597% 506,822 1.581%
871,002 2.428% 841,194 2.283% 811,555 2.435% 797,439 2.215% 654,856 2.030% 411,863 1.284%
270,488 0.754% 273,803 0.743%
451,282 1.258% 442,621 1.201%
1,166,557 3.252% 1,249,473 3.391% 1,334,505 4.004% 1,288,927 3.580% 1,183,862 3.670% 1,184,207 3.693%
540,173 1.506% 693,404 1.882% 691,574 2.075% 591,631 1.643% 694,230 2.152% 695,854 2.170%
623,458.45 1.871% 543,874.88 1.511% 555,487.00 1.722% 542,584 1.692%
464,543 1.261% 484,024 1.452% 530,496 1.473% 536,079 1.662% 374,163 1.167%
503,809 1.405% 491,900 1.335%481,445 1.337% 460,150 1.426% 461,871 1.440%
1,672,106 4.662% 1,728,231 4.691% 1,553,231 4.660% 1,502,357 4.173% 1,506,057 4.669% 1,366,717 4.262%
1,265,361 3.528%1,165,298 3.496% 1,172,185 3.256% 1,217,518 3.774% 1,279,875 3.992%
9,074,348$ 25.299% 8,492,281$ 23.050% 8,926,425$ 44.193% 9,059,811$ 25.162% 8,858,752$ 27.461% 7,901,259$ 24.642%
Fiscal Year
183
Last Ten Fiscal Years
Fiscal Year Residential
Commercial Industrial Other Total
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$
2019 10,197,688 3,855,885 2,791,376 1,608,271 18,453,220$
2020 10,625,094 3,850,353 2,517,475 1,069,091 18,062,013$
2021 11,962,226 4,310,790 2,151,113 1,084,275 19,508,403$
Source: City of Azusa Light & Water Department
City of Azusa
Table 8 - Water Sold by Type of Customer
Type of Customer
184
City of Azusa
Table 9 - Water Rates
Last Ten Fiscal Years
Fiscal Monthly Tier 1 Tier 2 Tier 3
Year Ended Base Rate per Rate per Rate per
Activity Rate CCF CCF CCF
0-12 CCF >12 CCF
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
2019 15.47 1.114 1.819 2.295
2020 15.47 1.137 1.855 2.341
2021 15.47 1.137 1.855 2.341
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
(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.
185
Table 10 - Largest Water Customers
2012 2013 2014 2015
Percentage Percentage Percentage Percentage
of Total of Total of Total of Total
Water Water Water Water Water Water Water Water
Water Customer:Charges Revenues Charges Revenues Charges Revenues Charges Revenues
APU Foundation 126,737$ 0.742% 130,761$ 0.721% 138,644$ 0.776% 121,552$ 0.706%
Azusa Carefree Association
Azusa Greens Country Club 131,809 0.772% 163,455 0.901% 157,909 0.884% 163,734 0.951%
Azusa Land Reclamation
Azusa USD 285,883 1.674% 390,372 2.152% 380,303 2.130% 309,041 1.795%
Azusa Western 259,555 1.520% 262,656 1.448% 251,656 1.409% 277,779 1.614%
Citrus College 49,133 0.271%
City of Azusa 137,730 0.807% 150,954 0.832% 157,052 0.879% 116,061 0.674%
Covina Valley USD 110,587 0.648% 167,684 0.924% 142,356 0.797% 145,329 0.844%
Mike Nijjar-060 79,676 0.467%
Miller Brewery 1,126,387 6.597% 1,155,227 6.369% 1,068,819 5.985% 957,677 5.563%
Mountain Cove
NCI
Ready Pac 533,105 3.122% 556,493 3.068% 546,810 3.062% 438,847 2.549%
S&S Foods LLC 122,666 0.718% 132,658 0.731% 129,093 0.723% 173,338 1.007%
Vulcan Materials 51,760 0.290%
Total 2,914,135$ 17.067% 3,159,393$ 17.418% 3,024,402$ 16.936% 2,703,358$ 15.704%
Source: City of Azusa Light & Water Department
City of Azusa
Last Ten Fiscal Years
Fiscal Year
186
2016 2017 2018 2019 2020 2021
Percentage Percentage Percentage Percentage Percentage Percentage
of Total of Total of Total of Total of Total of Total
Water Water Water Water Water Water Water Water Water Water Water Water
Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues Charges Revenues
142,796$ 0.913% 174,221 0.984% 145,658 0.770% 139,958 0.758% 159,509 0.883% 224,732 1.152%
99,716 0.540%145,352 0.745%
205,146 1.311% 179,498 1.014% 168,221 0.889% 140,137 0.759% 158,163 0.876% 194,341 0.996%
281,016 1.523% 267,121 1.479% 127,183 0.652%
303,127 1.938% 398,863 2.254% 491,346 2.598% 419,292 2.272% 396,548 2.195% 440,203 2.256%
392,150 2.507% 322,098 1.820% 240,739 1.273%
170,869 1.092% 215,483 1.217% 249,441 1.319% 243,291 1.318% 246,220 1.363% 329,087 1.687%
137,576 0.879% 140,192 0.792% 191,827 1.014% 168,466 0.913% 155,681 0.862% 169,155 0.867%
928,794 5.937% 977,763 5.524% 968,288 5.120% 968,327 5.247% 513,306 2.842%
126,479 0.808%137,637.42 0.706%
105,078 0.556%
564,237 3.607% 618,202 3.493% 653,219 3.454% 592,580 3.211% 510,323 2.825% 552,244 2.831%
129,519 0.828% 162,258 0.917% 145,158 0.768% 149,885 0.812% 113,497 0.628% 114,207 0.585%
109,711 0.607%
3,100,693$ 19.821% 3,188,578$ 18.016% 3,358,975$ 17.761% 3,202,669$ 17.356% 2,630,079$ 14.561% 2,434,142$ 12.477%
Fiscal Year
187
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188
Taxable
Assessed
Total Estimated Value as a
Fiscal Year Total Taxable Direct Actual Percentage of
Ended Residential Commercial Other Assessed Tax Taxable Actual
June 30 Property Property Property
Value (1)Rate Value Taxable Value
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 0.13961 3,680,259,674 100.0%
2016 2,718,542,945 291,006,304 963,951,180 3,973,500,429 0.13918 3,973,500,429 100.0%
2017 2,952,542,573 310,843,612 963,889,518 4,227,275,703 0.13920 4,227,275,703 100.0%
2018 3,181,170,861 344,807,866 984,941,845 4,510,920,572 0.13812 4,510,920,572 100.0%
2019 3,382,188,399 395,863,426 1,032,586,758 4,810,638,583 0.13927 4,810,638,583 100.0%
2020 3,676,936,137 402,291,953 1,109,744,291 5,185,972,381 0.13926 5,185,972,381 100.0%
2021 3,878,337,245 437,800,082 1,208,435,097 5,524,572,424 0.13924 5,524,572,424 100.0%
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)
189
Table 12 - Direct and Overlapping Property Tax Rates
2012 2013 2014 2015
City Direct Rates:
General City 0.14921$ 0.14921$ 0.14921$ 0.14921$
Redevelopment Agency 1.01800 (1)(1)(1)
Total Direct Rate 0.34311 0.33678 0.13976 0.13961
Overlapping Rates:
Azusa Unified School District 0.05628 0.04641 0.03765 0.04468
Citrus Community College District 0.02447 0.02590 0.02226 0.02327
Covina Valley Unified School District 0.08999 0.09500 0.11472 0.11426
Duarte Unified School District 0.11237 0.12657 0.12283 0.14263
Metropolitan Water District 0.01800 0.01800 0.01800 0.01800
Mt. San Antonio College 0.02642 0.02896 0.02023 0.02129
Total Tax Rate 0.47674 0.49005 0.48490 0.51334
(1)The Redevelopment Agency dissolution by the State of California caused the tax
allocation bonds to be transferred to the Successor Agency and is a fiduciary fund.
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
Source: L.A. County Assessor 2008/09 - 2017/18 Tax Rate Table
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.
CITY OF AZUSA
(rate per $100 of assessed value)
Last Ten Fiscal Years
General fund tax rates are representative and based upon the direct and overlapping rates
for the largest General Fund tax rate area by net taxable value.
Total Direct Rate is the weighted average of all individual direct rates applied by the City.
The Direct Rate percentages presented in the columns above is not the sum of the General
City Rate and the Redevelopment Agency Rate (RDA).
RDA rate is based on the largest RDA tax rate area and includes only rates from
indebtedness adopted prior to 1989 per California State statute. RDA direct and
overlapping rates are applied only to the incremental property values.
Fiscal Year
190
2016 2017 2018 2019 2020 2021
0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$ 0.14921$
(1)(1)(1)(1)(1)(1)
0.13918 0.13920 0.13812 0.13927 0.13926 0.13924
0.11479 0.10430 0.10591 0.09806 0.11416 0.10817
0.01641 0.02406 0.02229 0.02238 0.02172 0.02157
0.11062 0.12581 0.14205 0.13976 0.13521 0.12658
0.14193 0.14398 0.14061 0.15864 0.15585 0.16276
0.01800 0.02300 0.03000 0.03000 0.03000 0.03000
0.02154 0.02400 0.02371 0.02435 0.04781 0.04459
0.57250 0.59436 0.61378 0.62240 0.62396 0.61288
Fiscal Year
191
Table 13 - Principal Property Tax Payers (Top Ten)
Current Year and Ten Years Ago
2021 2012
Percentage of Percentage of
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation 110,995,223 2.01% 111,817,964 3.50%
Citrus Crossing Properties Fee 29,276,890 0.53% 32,122,968 1.00%
Target Corporation 36,195,056 0.66%
PPF Industrial 823 8th Street 36,343,525 0.66%
10th Street XC LLC 32,901,807 0.60%
Rainbird Corporation 37,670,660 0.68% 46,424,353 1.45%
Azusa Pacific University 34,253,727 1.07%
The Launitas Brewing Company 31,748,885 0.57%
Costco Wholesale Corporation 19,303,996 0.60%
Azusa Porperties LLC 30,915,800 0.56%
Sands & S Foods LLC 20,842,118 0.65%
Rosedale Land Partners II LLC 41,798,000 1.31%
PPF Industrial 823 985 8th Street 30,727,500 0.96%
Todd APG LLC 64,589,000 1.17%
Azusa Rock Inc 37,481,829 0.68%
Sam Menlo Trust 18,118,730 0.57%
William Lyon Homes Inc 18,235,404 0.57%
448,118,675$ 8.11% 373,644,760$ 11.68%
The amounts shown above include assessed value data for both the City and the Redevelopment
Agency/Successor Agency.
Source: HdL
City of Azusa
192
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
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% 79,945
(1)4,980,719 100.0%
2019 5,209,129 5,141,739 98.7% 10,022 5,151,761 98.9%
2020 5,525,221 5,419,325 98.1% 105,895 5,503,973 99.6%
2021 5,946,964 5,658,791 95.2% 288,173 5,811,954 97.7%
(1)Restated
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
193
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Certificate Taxable Unamortized Total
Ended of Pension Premiums/ Governmental
June 30 Loans Participation Funding Bonds (1)(Discounts) Activities
2012 10,005,461 3,025,000 5,555,000 - 18,585,461
2013 10,403,644 2,785,000 4,855,000 - 18,043,644
2014 10,700,656 2,540,000 4,075,000 - 17,315,656
2015 - (5)2,285,000 3,205,000 - 5,490,000
2016 - 5,590,000 (6)2,240,000 179,828 7,830,000
2017 - 5,235,000 (6)1,175,000 158,030 6,568,030
2018 122,889 (7)4,845,000 (6)- 156,488 5,124,377
2019 83,496 4,440,000 (6)- 154,946 4,678,442
2020 40,943 4,015,000 - 153,404 4,209,347
2021 - 3,055,000 70,075,000 150,539 73,280,539
(1)The City issued $7,215,000 of taxable pension funding bonds in 2008, which was paid off in 2017. The C
(2)The Light Fund issued $11,995,000 of new Certificates of Participation in 2003; issued refunding revenu
(3)The Water Fund replaced its Revenue Bond with Certificates of Participation in December 2003; issued
(4)The Sewer Fund acquired an installment sale agreement loan of $5,630,000 in 2011 that includes the refu
(5)The term of the loan expired and the remaining balance was forgiven.
(6)Includes 2003 COPs and 2016 T.R.I.P installment agreement.
(7)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
194
Business-type Activities
Certificate Unamortized Total Total Percentage of Percentage of
of Revenue Premiums/ Business-type Primary Assessed Personal
Loans(4)Participation (2)Bonds (3)(Discounts) Activities Governmental Values Income
5,630,000 3,070,000 68,500,000 - 77,200,000 95,785,461 2.99% 10.85%
5,405,000 2,540,000 68,180,000 - 76,125,000 94,168,644 2.90% 11.12%
5,080,000 1,985,000 67,380,000 - 74,445,000 91,760,656 2.68% 10.85%
4,730,000 1,400,000 65,445,000 - 71,575,000 77,065,000 2.09% 8.95%
4,365,000 780,000 60,205,000 3,836,045 69,186,045 77,016,045 1.94% 8.48%
3,990,000 130,000 58,320,000 3,589,433 66,029,433 72,597,463 1.72% 7.70%
3,605,000 - 55,730,000 3,342,821 62,677,821 67,802,198 1.50% 6.91%
3,205,000 - 52,910,000 3,096,209 59,211,209 63,889,651 1.33% 5.28%
2,790,000 - 49,970,000 2,849,597 55,609,597 59,818,944 1.15% 4.84%
2,370,000 - 44,232,100 2,602,985 51,887,985 125,168,524 2.27% 10.23%
City Issued $70,705,000 taxable pension obligation bonds in 2020.
ue bonds of $5,820,000 in 2012.
refunding revenue bonds of $8,715,000 in 2012, and refunded the 2006 bonds with 2015 issuance.
unding of 1994 COPs.
195
Fiscal Year Certificates Tax Debt per
Ended of Allocation City
June 30 Participation Bonds Total Capita
2012 3,025,000 (1)3,025,000 64
2013 2,785,000 (1)2,302,380 48
2014 2,540,000 (1)2,057,409 43
2015 2,285,000 (1)1,802,388 36
2016 2,020,000 (1)1,536,570 31
2017 1,745,000 (1)1,260,698 25
2018 1,460,000 (1)972,573 19
2019 1,160,000 (1)642,670 13
2020 845,000 (1)331,889 7
2021 - -
(1)The Redevelopment Agency dissolution by the State of California caused the tax
allocation bonds to be transferred to the Successor Agency and is a fiduciary fund.
Source: City of Azusa Finance Department
CITY OF AZUSA
Table 16 - Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
196
City's Share
Total Debt Applicable of Debt
Overlapping debt repaid with property taxes1
METROPOLITAN WATER DISTRICT 13,101,783$ 0.124% 16,246$
CITRUS CCD DS REF BOND SERIES 2013 7,980,302 16.940% 1,351,863
CITRUS CCD DS 2004 SERIES 2014D 1,414,253 16.940% 239,574
CITRUS CCD DS 2004, 2015 SERIES E 6,055,000 16.940% 1,025,717
CITRUS CCD DS REF BONDS 2015 SERIES A 80,055,000 16.940% 13,561,317
MT. SAN ANTONIO CCD DS 2008 SERIES 13A 161,337,332 0.041% 66,148
MT. SAN ANTONIO CCD DS 2008 SERIES 2013B 2,610,000 0.041% 1,070
MT. SAN ANTONIO CCD DS 2013 REF SERIES A 18,045,000 0.041% 7,398
MT. SAN ANTONIO CCD DS 2013 REF SERIES B 21,260,000 0.041% 8,717
MT. SAN ANTONIO CCD DS 2008 SERIES 2015C 7,315,000 0.041% 2,999
MT. SAN ANTONIO CCD DS 2015 REF BONDS 16,415,000 0.041% 6,730
MT. SAN ANTONIO CCD DS 2018 SERIES 2019A 288,690,000 0.041% 118,363
MT. SAN ANTONIO CCD DS 2020 REF SERIES 180,433,674 0.041% 73,978
AZUSA UNIFIED 2002 SERIES 2007 28,386,899 68.948% 19,572,199
AZUSA UNIFIED REFUND BOND 2002 SERIES 2011 10,105,000 68.948% 6,967,195
AZUSA UNIFIED 2014 SERIES A 24,135,000 68.948% 16,640,600
AZUSA UNIFIED REFUND BOND 2016 20,780,000 68.948% 14,327,394
AZUSA UNIFIED 2014 SERIES B 500,000 68.948% 344,740
AZUSA UNIFIED 2014 SERIES C 22,450,000 68.948% 15,478,826
AZUSA UNIFIED REFUND BOND 2019 22,115,000 68.948% 15,247,850
COVINA VALLEY USD DS 2001 SERIES B 8,328,416 0.396% 32,981
COVINA VALLEY USD DS 2001 REFUND 2010 SERIES A 1,025,000 0.396% 4,059
COVINA VALLEY USD DS 2012 SERIES A 4,815,000 0.396% 19,067
COVINA VALLEY USD DS 2013 REF BONDS 10,560,000 0.396% 41,818
COVINA VALLEY USD DS 2012 SERIES B 36,145,000 0.396% 143,134
COVINA VALLEY USD DS 2012 SERIES C 12,000,000 0.396% 47,520
COVINA VALLEY USD DS 2012 SERIES C 2,650,000 0.396% 10,494
COVINA VALLEY USD DS 2016 REF BONDS 15,900,000 0.396% 62,964
COVINA VALLEY USD DS 2012 SERIES D 28,515,000 0.396% 112,919
COVINA VALLEY USD DS 2012 SERIES E 14,000,000 0.396% 55,440
COVINA VALLEY USD DS 2019 REF BONDS 57,545,000 0.396% 227,878
DUARTE USD DS 1998 SERIES B 1,119,945 1.123% 12,577
DUARTE USD DS 1998 SERIES C 3,039,754 1.123% 34,136
DUARTE USD DS 1998 SERIES E 3,614,534 1.123% 40,591
DUARTE USD DS REFUNDING 1998, 2010 SERIES A 8,914,906 1.123% 100,114
DUARTE USD DS 2010 SERIES A 580,000 1.123% 6,513
DUARTE USD DS 2010 SERIES B 10,611,042 1.123% 119,162
DUARTE USD DS 2013 REF BONDS 1,080,000 1.123% 12,128
DUARTE USD DS 2010 SERIES C 1,140,000 1.123% 12,802
DUARTE USD DS 2010 SERIES D 19,739,524 1.123% 221,675
DUARTE USD DS 2010 SERIES E 17,705,000 1.123% 198,827
Total Overlapping Debt 106,575,728
City Direct Debt -
Combined Total Direct and Overlapping Debt 106,575,728$
2010/21 Assessed Valuation: $4,192,384,734 After Deducting $1,332,187,690 Incremental Value.
Debt to Assess Valuation Ratios:Direct Debt 0.00%
Overlapping Debt 2.54%
Total Debt 2.54%
Source: HdL Coren & Cone
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated
by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the
city's boundaries and dividing it by each unit's total taxable assessed value.
City of Azusa
Table 17 - Direct and Overlapping Debt
June 30, 2021
2 This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation boncs, interim financing
obligations, non-bonded capital lease obligations, and certificates of pariticipation.
1 Debt balances are as of June 30, 2021 (most recent available)
197
Table 18 - Legal Debt Margin Information
2012 2013 2014 2015
Assessed valuation 2,297,922,448$ 2,459,261,962$ 2,661,768,903$ 2,865,858,608$
Conversion percentage 25%25%25%25%
Adjusted assessed valuation 574,480,612 614,815,491 665,442,226 716,464,652
Debt limit percentage 15%15%15%15%
Legal debt limit 86,172,092 92,222,324 99,816,334 107,469,698
Amount of debt applicable to debt limit (1)- - - -
Legal debt margin 86,172,092 92,222,324 99,816,334 107,469,698
Source: City of Azusa - Finance Department
City of Azusa
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.
(2) Historically the City's Assesed valuation data consisted of Area1 only. Effective in FY18/19 measurement was
changed to reflect the City Wide assessed valuation.
Fiscal Year
198
2016 2017 2018 2019 2020 2021
3,038,069,746$ 3,249,119,133$ 3,436,345,877$ 4,810,638,583$ 5,185,972,381$ 5,525,663,484$
25%25%25%25%25%25%
759,517,437 812,279,783 859,086,469 1,202,659,646 1,296,493,095 1,381,415,871
15%15%15%15%15%15%
113,927,615 121,841,967 128,862,970 180,398,947 194,473,964 207,212,381
- - - - -
113,927,615 121,841,967 128,862,970 180,398,947 194,473,964 207,212,381
Fiscal Year
199
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage
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
2019 22,772,707 17,559,469 5,213,238 2,025,000 2,061,804 4,086,804 1.28
2020 24,896,938 18,363,855 6,533,083 2,120,000 1,969,253 4,089,253 1.60
2021 27,052,902 17,115,336 9,937,566 2,210,000 1,906,778 4,116,778 2.41
(1)Calculation of debt coverage is in accordance with covenants set for in 2012 Series A Refunding Revenue Bonds.
(2)Includes interest revenue. Revenues restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
(3)Excludes depreciation expense. Expenses restated from Fiscal Year 2012/13 CAFR to reflect calculation set forth in bond covenants.
Debt Service Requirements
Fiscal Year Net Revenue
Ended Operating Operating Available for
June 30 Revenues(2)Expenses (3)Debt Service Principal Interest Total Coverage
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
2019 41,668,342 29,462,841 12,205,501 795,000 150,966 945,966 12.90
2020 39,975,498 30,873,743 9,101,755 820,000 127,895 947,895 9.60
2021 40,738,809 35,946,742 4,792,067 845,000 100,399 945,399 5.07
(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
200
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
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
2019 3,231,981 1,671,136 1,560,845 400,000 165,735 565,735 2.76
2020 3,416,110 1,979,141 1,436,969 415,000 59,253 474,253 3.03
2021 3,510,755 1,728,459 1,782,296 420,000 92,215 512,215 3.48
(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
201
Debt Service Requirements
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Total Coverage
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
2019 5,971,272 2,002,884 1,752,794 3,755,678 1.59
2020 4,598,833 2,004,180 1,838,444 3,842,624 1.20
2021 3,829,353 2,064,180 1,710,763 3,774,943 1.01
TAX ALLOCATION BONDS - SUCCESSOR AGENCY
CITY OF AZUSA
Table 20 - Pledged Revenue Coverage
Last Ten Fiscal Years
202
Per Capita
Calendar City County Personal Personal Unemployment
Year Population
Population (1)Income Income(1)Rate(1)
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%
2018 49,954 10,283,729 981,213,000 19,122 4.5%
2019 51,313 10,253,716 1,210,525,000 23,591 4.5%
2020 49,658 10,172,951 1,236,236,000 24,895 4.2%
2021 50,000
(1)10,044,458 1,224,105,000 24,686 11.6%
Sources: HdL Coren & Cone, Los Angeles County Assessor
(1) U.S. Census Bureau and Bureau of Labor Statistics
CITY OF AZUSA
Table 21 - Demographic and Economic Statistics
Last Ten Calendar Years
203
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204
City of Azusa
Table 22 - Principal Employers
Current Year and Ten Years
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Employment Employees Rank Employment
Azusa Unified School District*1435 6.32% 1064 4.69%4.69%
Azusa Pacific University 1265 5.57% 1200 5.29%5.29%
Alliance Environmental Group 150 0.66%(2)
Northrop Grumman 1137 5.01% 1300 5.73%5.73%
Costco Wholesale Corporation 318 1.40% 265 1.17%1.17%
California Amforge 150 0.66%0.66%
Hanson Distribution Company 296 1.30%(2)
Physician's Formula 167 0.74% 0.74%
City of Azusa 274 1.21% 0.00% 0.00%
Cee-Jay Research and Sales 250 1.10% 1.10%
Monrovia Nursery 671 2.96% 2.96%
S&S Foods LLC 220 0.97%
(2)
OJ Insulation 166 0.73%(2)
ABCO Insulation 200 0.88% 0.88%
Andre Landscape Services 121 0.53%0.53%
Buena Vista Food Products 145 0.64%(2)0.00%0.00%
Wynn's 120 0.53%0.53%
Dostalek Construction Company (2)
Colorama Wholesale Nursery (2)
Target (2)
Artisan Screen 100 0.44% 0.44%
Gale Banks Engineering 160 0.70% 0.70%
Stanley Steemer Carpet Cleaner 150 0.66% 0.66%
Buena Vista Food Products 122 0.54% 0.54%
Astro Company 100 0.44% 0.44%
Alliance Environmental Group 200 0.88% 0.88%
Magparts 175 0.77% 0.77%
Total of Top Employers 5,406 23.81% 6,515 28.70% 28.70%
Total Employees in City 22,700 (1)(2)
Sources:
2010-11 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
2019-20 2010-11
205
Table 23 - Full-time and Part-time Employees By Function
Function 2012 2013 2014 2015 2016
General government 30.934 33.593 31.146 31.146 25.821
Public safety 88.750 97.570 91.750 91.750 95.200
Community development 14.197 14.651 15.533 15.533 15.462
Parks and recreation 48.023 45.407 49.317 49.317 50.260
Public works 30.058 30.265 27.181 27.181 30.259
Water 42.625 43.275 46.617 46.617 44.330
Electric 37.625 37.975 32.492 32.492 32.170
Sewer/Wastewater 10.230 9.570 7.540 7.540 8.040
Total 302.442 312.306 301.576 301.576 301.541
Source: City of Azusa Finance Department
Assigned Full-Time Equivalent (FTE) Totals
City of Azusa
Last Ten Fiscal Years
Fiscal Year
206
2017 2018 2019 2020 2021
49.775 45.909 43.682 45.100 46.000
94.500 97.500 97.500 97.800 97.800
17.462 18.460 18.152 18.160 18.160
37.127 39.990 44.405 59.346 44.867
30.233 30.260 26.072 14.340 13.860
27.300 30.550 30.550 46.165 47.215
56.086 60.030 62.130 42.865 42.915
7.235 7.810 8.260 7.950 8.430
319.718 330.509 330.751 331.726 319.247
Fiscal Year
207
Table 24 - Operating Indicators by Function
2012 2013 2014 2015 2016
Police:
Calls for service 57,210 57,637 54,363 44,842 49,007
Parking citations issued 6,515 7,680 6,846 5,057 5,788
Public Works:
Street resurfacing (lineal miles) 4.2 4.3 5.3 3.0 1.2
Parks and recreation:
Number of recreation classes 73 101 211 177 584
Number of facility rentals 868 874 809 866 933
Water:
Number of service connections (2)23,104 (2)23,302 (2)23,597 (2)23,871 (2)29,934 (2)
Average daily consumption 20,819 22,179 21,974 19,438 16,958
(hundred cubic feet)
Light:
Number of service connections 15,567
(2)15,749 (2)15,955 (2)16,466 (2)16,740 (2)
Average daily consumption 648,020 677,871 685,699 705,100 695,068
(kWh)
Sewer:
Number of service connections (2)15,235 (2)15,374 (2)15,374 (2)16,074 (2)15,968 (2)
Refuse:
Number of residential customers (2)11,293 (2)11,652 (2)11,866 (2)12,128 (2)12,234 (2)
Average daily collection 178 179 180 185 193
(thousands of pounds)
(1)Information not available
(2)Restated number of service connections beginning in FY 2006 to number of billed accounts an
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
208
2017 2018 2019 2020 2021
43,933 44,051 44,402 43,837 44,093
3,809 10,813 16,796 11,871 14,190
1.1 1.8 1.5 1.2 1.8
552 472 470 320 0
1,223 1,215 1,085 1,007 261
24,156 (2)24,284 (2)24,453 (2)24,123 (2)23,426
18,077 19,441 18,116 17,556 18,477
16,555 (2)16,695 (2)16,854 (2)17,505 (2)17,013
701,302 692,857 680,584 664,689 661,552
16,002 (2)16,002 (2)15,901 (2)15,669 (2)15,869
12,439 (2)12,422 (2)12,580 (2)12,586 (2)12,416
187 190 202 199 190
nd accounted for customers
Fiscal Year
209
Table 25 - Capital Asset Statistics by Function
2012 2013 2014 2015 2016
Police:
Stations 11111
Public Works:
Streets (lineal miles) 174 176 177 178 178
Traffic signals 53 53 55 56 57
Parks and recreation:
Parks 15 16 17 20 21
Park acreage 64 64 77 84 85
Community centers 33333
Water:
Water mains (miles) 315 315 315 315 281
Number of fire hydrant 2,810 2,815 2,820 2,820 2,444
Maximum daily capacity 70,500 70,500 70,500 70,500 70,500
(hundred cubic feet)
Light:
Metered Streetlights 65 65 65 65 64
Daily consumption (kWh) 162 162 162 162 164
UnMetered Streetlights 2,423
Daily consumption (kWh)56
Sewer:
Sanitary sewers (miles) 80 80 80 80 80
Storm sewers (miles) 15 16 16 16 16
Maximum daily treatment capacity 48 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
210
2017 2018 2019 2020 2021
111 11
179 179 179 179 106
57 58 59 59 59
22 22 22 22 22
87 87 87 87 87
333 33
281 281 281 281 287
2,444 444 444 444 2,500
70,500 70,500 70,500 70,500 70,500
64 64 64 64 64
164 164 164 164 125
2,463 2,463 2,463 2,463 2,463
4,564 4,564 4,108 4,108 4,108
80 80 80 80 80
16 16 16 16 16
60 60 60 60 60
Fiscal Year
211
Director of Administrative Services General Overview and Letter of Transmittal
Finance Manager and Senior Accountant Management's Discussion and Analysis
Charts
General Fund
Finance Manager Overall Coordination
Junior and Senior Accountants Proprietary Funds
Non-Major Proprietary Funds
Capital Projects
Fixed Assets Accounting
Junior and Senior Accountants Non-Major Governmental Funds
Internal Service Funds
Grants Funds (Single Audit)
Successor Agency
Finance Manager Statistical Section
Budget Administrator
Senior Payroll Specialist
Also, a special thank you to all Azusa Finance Staff: Kristina Pascarella, Jesus Jaimes, Henry
Quintero, Richard Lam, Ruby Toledo, Shawna Murray, Merci Rodriguez, Adriana Garcia, Charles
Alvarez, Luis Arteaga, Leslie Torres, and Elizabeth Guardado who also played roles in the
collection of data and completion of the fiscal year 2020/21 ACFR.
CITY OF AZUSA
Table 26 - Schedule of Credits
Fiscal Year 2020/21
212