Table of Contents I. INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement City of Goodyear Officials Organizational Chart II. Page i viii ix x FINANCIAL SECTION Independent Auditors’ Report 1 A. Management’s Discussion & Analysis 7 B. Basic Financial Statements Government‐wide Financial Statements Statement of Net Position Statement of Activities 23 24 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balance Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual‐General Fund 30 33 34 37 38 Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses and Changes in Fund Net Position Statement of Cash Flows 42 44 46 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position 51 52 II. FINANCIAL SECTION (Cont’d) Page Notes to Financial Statements 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Summary of Significant Accounting Policies Cash and Investments Receivables Capital Assets Loans Payable General Obligation Bonds Payable Revenue Bonds Payable Community Facilities Districts Bonds Payable Changes in Long‐term Liabilities Interfund Receivables, Payables, and Transfers Contingent Liabilities Risk Management Retirement Plans Deficit Fund Balances Fund Balance Classifications Commitments 57 66 69 70 72 73 75 77 79 79 80 80 81 86 86 87 C. Other Supplementary Information Non‐Major Governmental Funds – Financial Statements Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 96 98 Fiduciary Funds – Financial Statements Combining Statement of Assets and Liabilities – Agency Funds Combining Statement of Changes in Assets and Liabilities‐Agency Funds 104 106 Budgetary Comparison Schedules – Other Major Governmental Funds Community Facilities Districts – Debt Service McDowell Road Commercial Corridor Improvement District‐Debt Service Non‐Utility Development Impact Fees 109 110 111 Budgetary Comparison Schedules – Non‐Major Governmental Funds Highway User Revenue Fund Grants Community Facilities District – General Debt Service Capital Improvement Projects Fund 115 116 117 118 119 II. FINANCIAL SECTION (Concl’d) Page Budgetary Comparison Schedules – Enterprise Funds Water & Sewer Enterprise Fund Sanitation Enterprise Fund Stadium Enterprise Fund 120 121 122 Capital Assets Used in the Operation of Governmental Activities Schedule by Source Schedule by Function and Activity Schedule of Changes by Function and Activity III. STATISTICAL SECTION Net Position by Component Changes in Net Position Governmental Activities Tax Revenues by Source Sales & Use Taxes Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Property Tax Rates Principal Property Taxpayers Assessed Value and Estimated Actual Value of Taxable Property Property Tax Levies and Collections Utility Statistical Data Ten Largest Water Users Utility Statistical Data Ten Largest Wastewater Users Schedule of Existing and Adopted Monthly Water & Sewer Service Charges Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers Full‐Time Equivalent City Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function 125 126 128 Table 1 2 3 4 5 6 7 8 9 10 11 12 Page 132 134 141 142 144 146 150 155 156 158 159 161 13 14 15 16 17 18 19 20 21 22 23 162 164 166 167 168 170 171 172 173 174 178 Introductory Section Introductory Section Introductory Section includes the City’s Transmittal Letter, the C of Achievement for Excellence in Financial Reporting, the City’s Organizational Chart, and the Acknowledgment List. INTRODUCTORY SECTION City of Goodyear Comprehensive Annual Financial Report 2013-2014 December 8, 2014 Honorable Mayor, City Council, City Manager, and Citizens of the City of Goodyear, Arizona: State law requires that cities annually publish after the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) to the City of Goodyear, Arizona (the city) for the fiscal year ended June 30, 2014. 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 from any material misstatements. This document represents management’s report to its governing body, constituents, legislative and oversight bodies, investors and creditors. Copies of this report will be sent to elected officials, management personnel, bond rating agencies, Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (EMMA), and other agencies which have expressed interest in the city’s financial matters. Copies of this financial report will be placed on the city’s website for use by the general public. The accounting firm of Heinfeld, Meech & Co., P.C., Certified Public Accountants, an independent public accounting firm, performed the city’s annual financial statement audit. The auditors have issued an unmodified (“clean”) opinion of the City of Goodyear’s financial statements for the fiscal year ended June 30, 2014. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report on pages 7 ‐ 20 and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. CITY OF GOODYEAR PROFILE The City of Goodyear, incorporated in 1946 and chartered in 1988, started as a small town cultivating cotton for the production of rubber tires during World War I. Over the years, Goodyear has sustained continued growth and currently encompasses approximately 191 square miles in the western portion of Maricopa County and is approximately 17 miles west of the downtown Phoenix business district. The city’s growth is attributable to excellent housing, a small‐town atmosphere, convenient access to the central valley, and outstanding school districts. The population as of the 2010 census was 65,275, with current estimates as of fiscal year ended June 30, 2014 project to be 73,832. Goodyear has a Council/Manager form of government consisting of the Mayor and six council members. The Mayor and council members are elected at‐large to four‐year terms. The City Council is vested with policy and legislative authority and is responsible for passing ordinances, adopting the budget, appointing committee, commission, and board members, and appointing the positions of City Manager, City Attorney, and Judge. The City Manager is responsible for carrying out the policies and ordinances of the City Council, as well as overseeing the day‐to‐ day operations of the city. In fiscal year 2014 a staff of 487 full‐time employees working within 15 different departments performed the various functions of Goodyear’s city government and its operation. The city provides a full range of municipal services, including police and fire protection, sanitation services, water and sewer services, construction and maintenance of streets, recreational programs, parks and cultural events, public transportation, planning and zoning services, and general administrative services. Goodyear offers a wide range of community facilities including the Goodyear Ballpark, library, community center, swimming pool, and 17 parks encompassing 204 acres. The city is community‐driven and includes hundreds of volunteers that serve in various areas and, through their efforts, saved the city more than $543,000 in fiscal year 2014 alone. In addition, Goodyear continues to attract major employers with its availability of land, access to the central valley, and available commercial space. FINANCIAL CONTROLS Internal Controls The management of the City of Goodyear is responsible for establishing and maintaining a system of internal controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from unauthorized use or disposition, and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits requires estimates and judgments by management. The system of internal control is subject to periodic evaluation by management and is also considered by the independent auditors in connection with the annual audit of the city’s ii financial statements. All internal control evaluations occur within the above framework. The city’s internal accounting controls are considered to adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Controls The City of Goodyear, like all cities in the State of Arizona, is subject to numerous budget and related legal requirements. Article IX, Section 20 (1) of the Arizona Constitution sets limits on the city’s legal budget capacity. At a general election held on March 11, 2003, citizens of Goodyear approved a permanent adjustment of the 1979 expenditure base for population and inflation growth. The city may utilize the additional expenditure authority for any local budgetary purposes. The permanent adjustment eliminates the need for voter approval every four years. The city maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Mayor and Council. Activities of the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, and internal service fund are included in the annual appropriated budget. The legal level of budgetary control (i.e. the level at which expenditures cannot legally exceed the appropriated amount) is the total budget, as adopted by the City Council. All funds of the City have legally adopted budgets. The initial budget for the fiscal year may be amended during the year in a legally permissible manner. The City adopts the budget by departments for the General Fund and by fund for all others. The City Manager is generally authorized to transfer budgeted amounts within any specific department’s expenditure appropriation. Any budget revisions requiring a transfer between departments in the General Fund or a transfer between funds must be approved by the City Council. In addition to maintaining budgetary control via a formal appropriation, the city maintains an encumbrance accounting system. Encumbrances are made against appropriations upon the issuance of a purchase order. Encumbered appropriations lapse at fiscal year‐end and are re‐encumbered as needed in the next fiscal year. LOCAL ECONOMIC CONDITION AND OUTLOOK Goodyear continues its gradual recovery from the economic recession. During fiscal year 2014 there were 860 new single‐family resident permits issued which represents a decrease of 146 permits from the prior fiscal year, but an increase over fiscal year 2012. At June 30, 2014, Goodyear was ranked sixth in market‐share for single‐family starts in the Phoenix area. Goodyear’s sales tax revenues remain strong and continue to increase year over year. With the lasting uncertainty, the city continues to budget conservatively and monitor the changes taking place in the national and local economies, as adaptation is imperative to keeping the budget balanced and positioning the city for future growth. In the spring of 2014, three of the city’s four bond ratings were upgraded by Standard & Poor’s rating agency, with the city’s general obligation bond rating upgraded from AA‐ to AA. A few factors for the stable outlook and upgrade included strong budgetary flexibility and liquidity, along with strong management conditions supported by strong financial policies and practices. iii Sales Tax Goodyear, like all Arizona cities, places significant reliance on city sales tax revenues. City sales tax revenues for fiscal year 2014 increased by approximately 9% over fiscal year 2013 levels. Large capital projects involving the Loop 303 and I‐10 transportation corridor generated significant amounts of construction sales tax revenue to this category. State Shared Revenues The city receives revenue allocations from the State. These state shared revenues include allocations of the state‐collected income tax, sales tax, gas tax, and motor vehicle in‐lieu taxes. A significant portion of this revenue is placed in the city’s general fund where it is used to support day‐to‐day activities. The 2010 Census counts are used in the distribution formula for state shared revenues. As the city’s proportionate share of the state’s population continues to grow over time, the percentage of state shared revenues allocated to it will also increase. The city’s state shared revenues represented about 19% of the general fund revenue for fiscal year 2014. Property Tax In fiscal year 2014, the city’s combined (primary and secondary) property tax rate increased from $1.7750 to $1.90 per $100 of assessed valuation. This increase in the tax rate kept the levy (revenues) consistent, mitigating the impact of the decline in property valuation due to the recession. This stabilization ensured the city’s ability to service currently outstanding debt and maintain basic infrastructure. For the fiscal year 2015 budget, the Mayor and Council have adopted a decreased total combined property tax rate of $1.87 per $100 of assessed valuation. With estimates from the Maricopa County Assessor’s Office, city staff anticipates that fiscal year 2015 will be the first year the city sees an overall assessed valuation increase again since 2009. In accordance with its budget policies, the city will sell no new general obligation bonds until the combined property tax rate of $1.60 per $100 of assessed valuation can be achieved. LONG‐TERM FINANCIAL PLANNING In 2013, the Council began a process of redefining the long‐term strategic priorities of the city and adopted the first City Strategic Action Plan since 2002. During fiscal year 2014, the Council re‐affirmed this plan and adopted the FY15‐17 City Strategic Action Plan. The plan establishes the city’s vision and mission and also identifies priority focus areas for strategic initiatives that help to define its goals and actions. The City of Goodyear’s mission is as follows: The City of Goodyear will provide the finest municipal services and promote a quality environment to enhance our community’s prosperity through citizen and employee participation. We are committed to the stewardship of resources and fulfillment of the public trust. iv Four focus priorities are identified within the Strategic Action Plan: 1. Fiscal and Resource Management: The City of Goodyear will implement innovative and responsible policies and business practices to effectively manage its fiscal and human resources. The city will maintain a stable financial environment that is transparent and that maintains an outstanding quality of life for our citizens. Business practices will be efficient, business friendly, and ensure exceptional customer service to all stakeholders and citizens. 2. Economic Vitality: The City of Goodyear will seek diverse, high quality development, and will foster local jobs through the strategic pursuit of industries including renewable energy, engineering, technology, aerospace, medical, manufacturing, and internet fulfillment. Business investment and sustainability will be fostered through streamlined processes, strategic marketing, developing ongoing relationships, and encouraging tourism. 3. Sense of Community: The City of Goodyear will provide programs, gathering places, and events where the community can come together to participate in opportunities of learning and recreation. Sustainable relationships with the community will be cultivated through citizen engagement, outstanding customer service, and clear, accessible communication. 4. Quality of Life: The City of Goodyear will implement programs and projects that create a clean, well‐maintained, safe, and sustainable environment and that provides citizens with opportunities for an engaged, healthy, and active lifestyle. The Strategic Action Plan establishes a road map of key strategic initiatives that best advance the vision for the city and is aligned with many other planning documents used by the city, including departmental plans (which include specific strategic plans, master plans, and operational plans) which guide department priorities and individual employee performance evaluation goals. For each of these four focus priorities, long‐range goals have been identified and assigned to various departments for follow‐up. These priorities are also a key fundamental factor in the development of the city’s annual budget. MAJOR INITIATIVES The city’s management and Economic Development Division work to recruit new business, as well as assist existing businesses with additional job creation and expansions. The Council adopted the Economic Development “Focus on Success” strategic plan in fiscal year 2014, providing guidance and strategies for achieving key goals such as bringing jobs into Goodyear and working to make the city one of the largest employment bases in the West Valley. There are three major corridors in the city that will have a great influence on the community’s future: the Airport Gateway Center with 1,200 acres of mixed development, the Palm Valley 303 master planned business park with 2,000 acres, and the 801/85 Employment Center corridor with 1,700 acres for manufacturing and industrial business. Economic Development’s “Focus on Success” plan identifies strategic industries to focus on to build these corridors v including aviation/aerospace, medical, high‐tech manufacturing, higher education, and warehouse/distribution. Goodyear continues to grow and attract large business. In fiscal year 2014, the city saw more than 840 new jobs and $161 million in capital investment by both new and expanding industry in Goodyear. This includes expansion of AeroTurbine, Macy’s Distribution Center, Dick’s Sporting Goods, Galaxy International, Schoeller Allibert, Snyder’s, West Valley Hospital (receiving designation as a Level 1 trauma center), Sub‐Zero, and Cookson Doors. In the second half of fiscal year 2014 alone, Goodyear had 43 new businesses join the community, including a number of restaurants and retail establishments. AWARDS AND ACKNOWLEDGEMENTS Certificates of Achievement 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 Goodyear, Arizona, for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. This is the sixth year the city has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. That report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting this report to the GFOA to determine its eligibility for a certificate for fiscal year ended June 30, 2014. In addition, the city also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning 2013. This is the nineteenth year that the city has received the highest form of recognition in governmental budgeting. Acknowledgement The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of the staff of the Finance Department, especially the Accounting, Community Facilities District, and Utility Customer Service divisions. We also wish to thank the Mayor and members of the City Council, the city’s Audit Committee, and the City Manager’s Office for their interest and support in planning and conducting the financial affairs of the city in a responsible and progressive manner. Sincerely, Larry A. Lange Finance Director vi vii viii CITY OF GOODYEAR LIST OF PRINCIPAL OFFICIALS MAYOR Georgia Lord VICE MAYOR Joe Pizzillo COUNCIL MEMBERS Joanne Osborne Sheri Lauritano Wally Campbell William Stipp Sharolyn Hohman SENIOR MANAGEMENT STAFF Brian Dalke City Manager Michael Simonson Presiding Judge Roric Massey City Attorney Robert Beckley Deputy City Manager Wynette Reed Deputy City Manager Maureen Scott City Clerk Lyman Locket Human Resources Director Paul Luizzi Fire Chief Larry Lange Finance Director Gerald Geier Police Chief Sheri Wakefield-Saenz Development Services Director Daniel Cotterman Information Technology Director David Ramirez City Engineer Nathan Torres Park & Recreation Director Romina Khananisho Governmental Relations Manager Eduardo Cruz Court Administrator Mark Flynn Municipal Services Division Manager Mark Holmes Water Resources Division Manager Mark Seamans Environmental Services Division Manager Sherine Zaya Communications Manager ix x Financial Section Financial Section Financial Section includes the Independent Auditor’s Report, Management’s Discussion and Analysis, the Audited Financial Statements, Notes to the Audited Financial Statements, and Supplemental Information. FINANCIAL SECTION City of Goodyear Comprehensive Annual Financial Report 2013-2014 3033 N. Central Ave., Suite 300 Phoenix, Arizona 85012 Tel (602) 277-9449 Fax (602) 277-9297 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of the City Council City of Goodyear, Arizona Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Goodyear, Arizona (City), as of and for the year ended June 30, 2014, 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. Page 1 TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Goodyear, Arizona, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund 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 on pages 7 through 20 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, other supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information is the responsibility of management and was derived from and relates 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 other supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Page 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2014, on our consideration of City of Goodyear, Arizona’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 the 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 City of Goodyear, Arizona’s internal control over financial reporting and compliance. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 8, 2014 Page 3 Page 4 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Management’s Discussion and Analysis Management’s Discussion and Analysis Management’s Discussion & Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS For The Year Ended June 30, 2014 As management of the City of Goodyear, Arizona (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2014. This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any material deviations from the financial plan (the approved annual budget), and (5) identify individual fund issues or concerns. The management’s discussion and analysis (MD&A) has different focus and purpose than the letter of transmittal presented on pages i - vi of this report and is designed to be read in conjunction with the transmittal letter as well as the financial statements beginning on page 23 and the accompanying notes to the financial statements. FINANCIAL HIGHLIGHTS  The City’s government-wide assets and deferred outflows exceeded its liabilities and deferred inflows by $679.6 million (net position) at the close of fiscal year 2014. Of this amount, $65.9 million represents unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors.  Total net position of the City increased by $13.3 million attributable to actual revenues exceeding estimated revenues and to capital outlay and one-time expenses not completed at the end of the fiscal year being carried over for fiscal year 2015.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $78.2 million, an increase of $.1 million (.19%) in comparison with the prior year fund balance of $78.1 million. Approximately 55.8% of this amount ($43.6 million) is available for spending at the government’s discretion (unassigned fund balance).  At June 30, 2014, total unassigned fund balance for the general fund is $43.7 million, an increase of $10.4 million (31.2%) from the prior fiscal year. This increase is mainly due to actual revenues exceeding estimated revenues and to capital outlay and one-time expenses not completed at the end of the fiscal year being carried over for fiscal year 2015. The unassigned fund balance is approximately 67.7% of total general fund expenditures. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 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. All of the activities of the City, except those of a fiduciary nature, are included in these statements. The activities of the City are shown in two columns on these statements – governmental activities and business-type activities. A total column for the City is also provided. The Statement of Net Position presents information on all of the City’s assets, deferred outflow of resources, and liabilities, with the net of all categories being reported as the City’s net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Page 7 The Statement of Activities presents information demonstrating how the City’s net position changed during the most recent fiscal year as compared with the previous 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 the 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 compensated absences). The net revenue (expenses) show the financial burden that was placed on the City’s taxpayers by each of these functions. Providing this information allows our citizens to consider the cost of each function in comparison to the benefits they believe are provided by that function.  Governmental activities – Most of the City’s basic services are included here, such as general government (administration), public safety (police, fire and court), highways and streets, public works, culture and recreation, and development services. These activities are generally supported by taxes and general revenues.  Business-type activities – The services provided by the City included here are water, wastewater, sanitation and stadium services. These activities are primarily supported through user charges or fees. The government-wide financial statements include not only the City itself (known as the primary government), but also include the operations of numerous Community Facilities Districts. Although legally separate from the City, these component units are blended with the primary government because of their governance and financial relationship to the City. Separate financial statements may be obtained at the City of Goodyear’s Finance Department, 190 North Litchfield Road, Goodyear, Arizona 85338. The government-wide financial statements can be found on pages 23 - 25 of this report. 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 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 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 the City’s near-term financing requirements. Since 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 City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are on pages 33 and 37 respectively. The City maintains nine 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 balances for the General Fund, Community Facilities Districts – Debt Service, McDowell Road Improvements District – Debt Service, and Non-Utility Development Impact Fees, all of which are considered to be major funds. Data from the other five governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major Page 8 governmental funds is provided in the form of combining statements and schedules beginning on page 96 of this report. The governmental fund financial statements can be found on pages 30 – 38 of this report. Proprietary Funds. The City maintains four proprietary funds. Proprietary funds (enterprise and internal service) utilize full accrual accounting, the same method used by private sector business. The City uses separate enterprise funds to account for its water and sewer services, sanitation services and stadium operations. These funds are considered to be major funds of the City. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The city has one internal service fund – Fleet Management. The Fleet Management Fund reports activities that provide preventative maintenance, repairs and safety inspections for City vehicles and equipment. The internal service fund activities are reported as governmental activities on the government-wide statements. The proprietary fund financial statements can be found on pages 42 - 47 of this report. Fiduciary Funds. The City maintains five fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. 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. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statements can be found on pages 51 - 52 of this report. Notes to the Financial Statements. The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 57 - 87 of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budget process. The City adopts an annual budget for all governmental and proprietary funds. A budgetary comparison statement has been provided for the General Fund as part of the basic financial statements. The required supplementary information can be found on page 38 of this report. The combining statements referred to earlier in connection with non-major governmental funds is presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 96 - 99 and 115 - 119 of this report. Page 9 GOVERNMENT-WIDE FINANCIAL ANALYSIS The following tables, graphs and analysis discuss the financial position and changes to the financial position of the City as a whole as of the year ended June 30, 2014 with comparative information for the previous year. Net Position The following table was derived from the current and prior years Statement of Net Position: Statement of Net Position as of June 30 Governmental Business-type Total Activities Activities Primary Government 2013 2014 Current and other assets $ 152,815,195 $ 153,942,141 2014 $ 2013 41,863,365 $ 2014 39,221,516 $ Percent 2013 194,678,560 $ Change 193,163,657 0.78% Capital assets 530,755,574 527,219,634 399,600,310 405,046,599 930,355,884 932,266,233 -0.20% Total assets 683,570,769 681,161,775 441,463,675 444,268,115 1,125,034,444 1,125,429,890 -0.04% 670,993 349,306 520,672 474,896 1,191,665 824,202 44.58% 670,993 349,306 520,672 474,896 1,191,665 824,202 Deferred outflow of resources Deferred amount on refunding Total deferred outflow of resources Other liabilities Long-term liabilities outstanding Total liabilities 24,241,258 18,318,104 11,922,064 12,289,312 36,163,322 30,607,416 18.15% 182,212,131 190,524,926 228,256,456 233,924,937 410,468,587 424,449,863 -3.29% 206,453,389 208,843,030 240,178,520 246,214,249 446,631,909 455,057,279 -1.85% - 4,684,445 - 259,787 - 4,944,232 -100.00% - 4,684,445 - 259,787 - 4,944,232 -100.00% 345,513,895 333,034,884 177,274,142 178,456,590 522,788,037 511,491,474 2.21% Deferred inflow of resources Deferred revenue Total deferred inflow of resources Net position: Net Investment in Capital Assets Restricted for: Courts 221,290 234,813 - - 221,290 234,813 -5.76% Law enforcement 274,392 208,085 - - 274,392 208,085 31.87% Highw ays and streets Capital projects Community facilities Debt service Transit Unrestricted Total net position 697,914 493,395 - - 697,914 493,395 41.45% 8,166,897 17,937,344 2,976,525 532,750 11,143,422 18,470,094 -39.67% 12.90% 803,837 711,980 - - 803,837 711,980 74,438,000 78,999,381 2,663,967 2,663,381 77,101,967 81,662,762 -5.58% 644,135 543,022 - - 644,135 543,022 18.62% 52,436,956 25.71% 666,252,581 2.00% 47,028,013 $ 477,788,373 35,820,702 $ 467,983,606 18,891,193 $ 201,805,827 16,616,254 $ 198,268,975 65,919,206 $ 679,594,200 $ The net position over time, may serve as a useful indicator of a government’s financial position. The City’s assets and deferred outflow of resources exceeded liabilities and deferred inflow of resources by $679.6 million at the close of fiscal year 2014 and by $666.3 million in 2013 providing an overall increase in the City’s net position of $13.3 million. Current and other assets increased by $1.5 million. This increase was primarily in the business-type activities due to an increase in utility rates for future expansion. Long-term liabilities decreased by $14.0 million due to principal payments. The largest portion of the City’s net position $522.8 million (76.9%) reflects its net investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, artwork, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. Page 10 An additional portion of the City’s net position $90.9 million (13.4%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $65.9 million (9.70%) is unrestricted and may be used to meet the City’s ongoing obligations to its citizens and creditors. At the end of the fiscal year 2014, the City is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year for investment in capital asset and unrestricted net position. Net Position $511.5 Net investment in capital assets $522.8 $102.3 Restricted FY2013 $90.9 FY2014 $52.4 Unrestricted $65.9 $‐ $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Governmental Activities During the current fiscal year, the net position for governmental activities increased $9.8 million from the prior fiscal year for an ending balance of $477.8 million. The City’s sales tax revenue increased $3.6 million due to an increase in retail activity. State shared revenue also increased $1.1 million. Allocations of revenue for operating grants and contributions, capital grants and contributions, special assessments and miscellaneous revenues were changed this fiscal year to better reflect revenues in the appropriate categories. The City had more operating grants than capital grants this current fiscal year. Business-type Activities The City business-type activities have also resulted in positive overall net increase of $3.5 million bringing the net position balance to $201.8 million from the prior year. The majority of this increase resulted from charges for services of $2.9 million, which is related to an increase in the water and sewer rates. Page 11 Changes in Net Position The following table compares the revenues and expenses for the current and previous fiscal year. Changes in Net Position for Year End June 30 Governmental Business-type Total Activities Activities Primary Government 2013 2014 2014 2013 2014 Percent 2013 Change REVENUES: Program revenues: Charges for services $ 10,650,768 $ 10,572,068 $ 33,591,024 $ 30,777,930 $ 44,241,792 $ 41,349,998 6.99% Operating grants and contributions 7,565,511 4,654,268 - - 7,565,511 4,654,268 62.55% 6,171,185 11,358,824 5,962,050 7,987,680 12,133,235 19,346,504 -37.28% Sales taxes 43,775,464 40,222,752 - - 43,775,464 40,222,752 8.83% Property taxes 17,109,458 16,205,387 - - 17,109,458 16,205,387 5.58% 2,611,061 2,529,456 - - 2,611,061 2,529,456 3.23% 15,285,440 14,194,960 - - 15,285,440 14,194,960 7.68% 414,689 439,982 136,531 95,839 551,220 535,821 2.87% 2,189,906 - - - 2,189,906 - 100.00% Capital grants and contributions General revenues: Franchise taxes State shared revenue Investment income Special Assessments 1,183,618 1,455,665 222,911 432,983 1,406,529 1,888,648 -25.53% 106,957,100 101,633,362 39,912,516 39,294,432 146,869,616 140,927,794 4.22% General government 16,728,173 16,291,762 - - 16,728,173 16,291,762 2.68% Public safety 32,198,189 29,348,288 - - 32,198,189 29,348,288 9.71% Highw ays and streets 19,368,539 14,355,644 - - 19,368,539 14,355,644 34.92% Public w orks 2,773,348 3,090,345 - - 2,773,348 3,090,345 -10.26% Culture and recreation 5,827,309 5,539,612 - - 5,827,309 5,539,612 5.19% Development Services 5,836,254 7,194,428 - - 5,836,254 7,194,428 -18.88% Interest on long-term debt 9,282,269 10,411,562 - - 9,282,269 10,411,562 -10.85% Water and sew er - - 23,511,395 21,912,587 23,511,395 21,912,587 7.30% Sanitation - - 5,472,534 5,246,666 5,472,534 5,246,666 4.30% Stadium - - 12,529,987 12,204,354 12,529,987 12,204,354 2.67% Total expenses 92,014,081 86,231,641 41,513,916 39,363,607 133,527,997 125,595,248 6.32% before transfers 14,943,019 15,401,721 (1,601,400) 13,341,619 15,332,546 -12.98% Transfers (5,138,252) (4,876,544) 5,138,252 4,876,544 - - 0.00% 9,804,767 10,525,177 3,536,852 4,807,369 13,341,619 15,332,546 -12.98% 467,983,606 462,352,241 198,268,975 195,851,638 666,252,581 658,203,879 Miscellaneous Total revenues EXPENSES: Program activities: Governmental activities: Business activities: Increase in net position Changes in net position Net position, beginning of year Restatement* Net position, beginning of year-restated Net position, end of year (4,893,812) 467,983,606 $ 477,788,373 $ (69,175) - 457,458,429 198,268,975 467,983,606 $ 201,805,827 (2,390,032) $ - (7,283,844) 1.22% -100.00% 193,461,606 666,252,581 650,920,035 2.36% 198,268,975 $ 679,594,200 $ 666,252,581 2.00% *For fiscal year ended June 30, 2013 the City adopted GASB Statement No. 65, which resulted in a restatement. For more information please refer to the Comprehensive Annual Financial Report for the Year Ended June 30, 2013. Page 12 The pie chart below is a depiction of Government-Wide Revenue Sources, governmental activities accounts for 72.8% of total revenues, while business activities account for 27.2% of total revenues. Charges for services is the largest source of City revenues at 30.1%, a 7.0% increase from the previous fiscal year. The increase in charges for services represents business-type activities rate increases for water and sewer. The second largest increase in revenues are sales taxes at 29.8% of total revenue, which increased by 8.8% over the previous fiscal year. The increase in sales tax is due to an increase in retail activity. Government-Wide Revenue Sources Fiscal Year 2014 Operating grants and contributions 5.2% State shared revenue 10.4% Special Assessments 1.5% Miscellaneous 1.0% Property taxes 11.6% Franchise taxes 1.8% Capital grants and contributions 8.3% Page 13 Investment income 0.4% Sales taxes 29.8% Charges for services 30.1% The reported expenses for fiscal year 2014 increased by $7.9 million (6.3%) over the prior year. As seen in the following pie chart for Government-Wide Functional Expenses, governmental activities account for 68.9% of total functional expenses, while business-type activities account for 31.1% of total functional expenses. The lines items that experienced notable changes were:  Highways and streets expenses account for 14.5% of the total government-wide expenses, an increase of $5 million (34.9%) from the prior year. This increase is attributed to additional street maintenance projects. Government-Wide Functional Expenses Fiscal Year 2014 General government 12.5% Business activities 31.1% Highways and streets 14.5% Interest on longterm debt 7.0% Development services 4.4% Public works 2.1% Page 14 Culture and recreation 4.4% Public safety 24.1% FINANCIAL ANALYSIS OF THE CITY’S FUNDS The City maintains fund accounting to demonstrate compliance with budgetary and legal requirements. The following is a brief discussion of financial highlights from the fund financial statements. Governmental Funds The focus of the City’s governmental funds (pages 30 - 38) is to provide information on near-term inflows, outflows, and balances of spendable resources. All major governmental funds are discreetly presented on these financial statements, while non-major funds are combined into a single column. The combining statement for non-major funds may be found on pages 96 - 99. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $78.2 million, an increase of (.2%) from the previous year. The static fund balance is due to revenues being slightly higher than expenditures. Revenues increased by $3.4 million and expenditures increased by $.8 million. Approximately 55.8% of the fund balance ($43.6 million) constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted or assigned to indicate that it is 1) not in spendable form ($2.1 million), 2) legally required to be maintained intact ($28.7 million) or 3) assigned for particular purposes ($3.8 million). Revenues for governmental functions overall totaled $105.9 million in the fiscal year ended June 30, 2014, which represents an increase of $3.4 million (3.3%) from the prior fiscal year. The most significant reason for this increase is due primarily to increase of tax revenue ($4.6 million). The increase in tax revenue was due primarily to the resurgence in sales taxes for retail, residential construction, and commercial construction. The increase in construction activity coincided with the increased revenue for licenses and permits. The decrease in charges for services from the prior fiscal year is from a one-time royalty received for digital advertising. The expenditures for governmental functions totaled $101.3 million an increase of $.8 million (.8%) from the prior year. The majority of this increase is attributed to the public safety function. Public safety accounted for $29.3 million in expenditures an increase of $1.2 million, mainly for the cost of construction for an emergency communication building and equipment. Page 15 General Fund Components of Fund Balance June 30, 2013 and 2014 $33.3 Unassigned $43.7 $3.5 Assigned $3.8 FY2013 $4.5 Restricted FY2014 $4.8 $1.4 Nonspendable $1.5 $‐ $10.0 $20.0 $30.0 $40.0 $50.0 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $43.7 million while total fund balance increased to $53.8 million. As a measure of the general funds liquidity, it may be useful to compare both unassigned fund balance and total fund balance to general fund expenditures. The unassigned fund balance represents approximately 67.7% of general fund expenditures, while total fund balance represents approximately 83.3% of that same amount. Other Governmental Funds Components of Fund Balance June 30, 2013 and 2014 $34.6 Restricted $23.8 FY2013 $0.6 Nonspendable $0.6 $‐ Page 16 FY2014 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 The fund balance of the City’s general fund balance increased by $10.9 million in the current fiscal year due primarily to an increase of $4.0 million in tax revenues, and a decrease in expenditures for principal retirement of $1.3 million. This was driven by growth related revenues exceeding expectations. This is a 25.4% increase in fund balance from the prior year. The capital projects fund, a major fund last fiscal year, had a decrease in fund balance during the current fiscal year of $1.4 million due to building improvement projects nearing completion. The non-utility development impact fee fund had a decrease in fund balance during the current fiscal year of $8.3 million to bring the year end fund balance to $7.9 million. The decrease in fund balance is due to library improvements ($1.0 million), completion of a 911 facility ($3.2 million), construction of a fleet facility ($2.6 million), and a public works yard ($1.5 million). Proprietary Funds The proprietary fund financial statements are prepared on the same accounting basis and measurement focus as the government-wide financial statements, but provide additional detail since each major enterprise fund is shown discretely. The proprietary funds statements can be found on pages 42 - 47. The proprietary funds net position was $201.8 million, an increase of $3.5 million from the previous fiscal year. The Water and Sewer fund had a positive increase in net position of $4.8 million. This increase in net position of the proprietary funds is due primarily to an increase in water & sewer rates in 2014. BUDGETARY HIGHLIGHTS The City’s annual budget is the legally adopted expenditure control document of the City. The schedules filed with the Auditor General’s office list the original budget adopted for the prior year, estimated expenditures through the end of the fiscal year and the adopted current year’s budget. Budgetary comparison schedules are required for the General Fund, all major funds, non-major funds and enterprise funds. The General Fund budgetary comparison statement can be found on page 38. The other budgetary comparison schedules can be found in the Other Supplementary Information section on pages 109 - 122. During the fiscal year there were two revenue sources that greatly exceeded estimates as shown below: Revenue source Taxes Licenses and permits Estimated revenues 50,494,016 4,880,000 Actual revenues 53,293,743 7,460,830 Difference 2,799,727 2,580,830 Due the economic recovery, the City has increased the budgeted inflows and outflows in 2014. General Fund actual inflows (revenues and other financing sources) of $84.8 million, was more than budgeted inflows of $79.1 million by $5.7 million (7.2%), while expenditures and other financing uses of $73.9 million was only 69.6% of final budgeted outflows of $106.2 million. Page 17 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets (net of accumulated depreciation) for its governmental and business-type activities as of June 30, 2014 amounts to $930.4 million. Capital assets include land, artwork, construction in progress, right of way, water rights, streetscape, infrastructure, buildings and improvements and vehicles, furniture and equipment. In total, there was a slight decrease of $1.9 million from the prior year. Capital Assets at June 30 (Net of depreciation) Governmental Activities 2014 2013 Business-type Activities 2014 2013 Total Primary Government Percent 2014 Change 2013 Land $ 21,409,153 $ 21,579,127 $ 15,404,260 $ 15,404,260 $ 36,813,413 $ 36,983,387 Artwork 204,750 204,750 146,978 131,978 351,728 336,728 Construction in progress 8,648,103 10,387,773 4,308,014 3,961,571 12,956,117 14,349,344 Right of way 89,451,622 90,128,522 89,451,622 90,128,522 Water rights 16,055,937 16,028,618 16,055,937 16,028,618 Streetscape 9,061,008 8,996,008 9,061,008 8,996,008 Infrastructure 256,586,014 259,321,157 169,012,558 172,037,027 425,598,572 431,358,184 Building and improvements 132,432,832 128,865,856 189,926,512 192,548,042 322,359,344 321,413,898 Vehicles, furniture and equipment 12,962,091 7,736,441 4,746,050 4,935,103 17,708,141 12,671,544 -0.5% 4.5% -9.7% -0.8% 0.2% 0.7% -1.3% 0.3% 39.7% $ 530,755,573 $ 527,219,634 $ 399,600,309 $ 405,046,599 $ 930,355,882 $ 932,266,233 -0.2% Total The governmental capital assets increased in fiscal 2014 for building and improvements and vehicles, furniture and equipment. The increase in building and improvements of $3.5 million and the increase in vehicles, furniture and equipment of $5.2 million is due to the improvements for the library, the completion of a 911 facility, construction for a new fleet facility and a public works yard. The overall decrease in business capital assets of -$5.4 million are for aging infrastructure, the disposal of City machinery and equipment, and annual depreciation. For government-wide financial statement presentation, all depreciable capital assets are depreciated from acquisition date to the end of the current fiscal year. Additional information on the City’s capital assets can be found in Note 4 on pages 70 - 71 and in the schedules on pages 125 - 128 of this report. Page 18 Debt Administration At the end of the current fiscal year, the City had total long-term debt outstanding of $410.9 million. Of this amount $105.1 million is general obligation bonds backed by the full faith and credit of the City, $105.9 million is Community Facilities Districts bonds which are paid by the property owners within those districts, $185.3 million of revenue bonds which are payable from user fees and assessments, $10.1 million loan payable to WIFA by user fees, and $4.5 million compensated absences from the City operating funds. The following schedule shows the outstanding debt obligation as of June 30, 2014 and 2013. Outstanding Debt as of June 30 Governmental Activities General obligation debt Community Facilities Districts bonds Loan payable Revenue bonds Business-type Activities Total Percent 2014 2013 2014 2013 2014 2013 $ 23,863,737 $ 26,555,569 $ 81,161,263 $ 85,384,431 $ 105,025,000 $ 111,940,000 -6.2% 105,912,000 51,982,376 $ 181,758,113 109,823,000 54,821,467 $ 191,200,036 10,064,007 133,340,000 $ 224,565,270 10,998,942 133,845,000 $ 230,228,373 105,912,000 10,064,007 185,322,376 $ 406,323,383 109,823,000 10,998,942 188,666,467 $ 421,428,409 -3.6% -8.5% -1.8% -3.6% Change The outstanding revenue bonds listed under Governmental Activities include $41.0 million in McDowell Road Corridor Improvement District that is secured by pledges of specific revenue sources of the City. The additional revenue bonds of $144.3 million are for Public Improvement Corporation bonds totaling $102.1 million for the Stadium and $11.0 million for the City & $31.2 million for Water & Sewer Revenue bonds. The State constitution limits the amount of general obligation debt a city may issue to 6 percent of its total assessed valuation. The current 6% debt limitation for the City is $35.4 million. In addition, the State constitution limits allows a city to issue an additional 20 percent of its total assessed valuation for water, sewer, lights, transportation, public safety, open space preserves, parks, playgrounds and recreational facilities. The current 20% debt limitation for the City is $118.1 million. The City has $105.0 million outstanding general obligation debt for these purposes. During the spring, Standard & Poor’s upgraded the City’s credit rating on its general obligation bonds to AA, upgraded the City’s credit rating on its water and sewer revenue bonds to AA-, and upgraded the City’s credit rating on its improvement district bonds to A. Bonded Debt Ratings As of June 30, 2014 Type of Debt General Obligation Water & Sewer (Revenue) Public Improvement Corporation Improvement District Bonds Moody's Investors Service Standard & Poor's Aa2 A2 Aa3 A3 AA AAAAA Additional information on the City’s long-term debt can be found in Notes 5 – 9 on pages 72 - 79 of this report. Page 19 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET Unemployment levels are still a concern as recovery in the area of job creation remains low. The unemployment rate for Goodyear for June 2014 was 7.2%, which is higher than the state rate of 6.9% but lower than the national rate of 7.6%. Arizona cities remain dependent on sales taxes and other economically sensitive tax revenues and are susceptible to slowdowns in the economy. While unemployment is not a leading economic indicator, a strong economic recovery will likely coincide with a significant improvement in current unemployment rates. The City is projecting a positive outlook for budgeted revenues in fiscal year 2015 in comparison to budgeted revenues for fiscal year 2014. Sales taxes are the dominant revenue source for the City and are projected to increase from $40.9 million to $43.8 million, which is an increase of 7%. Property taxes are projected to increase from $7.0 million to $7.5 million, which is an increase of 7%. State shared revenues which are a combination of state shared sales tax, state shared income tax, and vehicle license tax are projected to increase from $15.1 million to $16.1 million in fiscal year 2015. The City’s operational budget is projected to increase by 14.6%, from $87.5 million in fiscal year 2014 to $100.3 million in fiscal year 2015, due to increased operating costs. The City’s capital improvement project expenditures are budgeted for $53.1 million which includes carryover funds of $25.1 million for projects started prior to fiscal year 2015 and an additional $28 million for new projects. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the resources it receives. A copy of the City's Comprehensive Annual Financial Report is available on-line at www.goodyearaz.gov/cafr. If you have questions about this report or need additional information, contact the City’s Controller, City of Goodyear, 190 N. Litchfield Road, or by mail at P.O. Box 5100, Goodyear, Arizona 85338. Page 20 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Basic Financial Statements Basic Financial Statements Government-wide Financial Statements - includes the Statement of Net Position and Statement of Activities that use the Governmental Funds Financial Statements - includes the Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance for the governmental funds that the govern tatements. Fiduciary Funds Financial Statements - includes the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net P of parties outside of the City. Notes to the Financial Statements Basic Financial Statements Proprietary Funds Financial Statements - includes the Statement of Net Position, Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows for the business-type activities that use the accrual basis of accounting for CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2014 Governmental Activities ASSETS Current assets: Cash and cash equivalents Investments Receivables Due from other governments Internal balances Inventories Prepaids Total current assets $ Noncurrent assets: Restricted cash and cash equivalents Restricted investments Restricted interest receivable Non-depreciable capital assets Depreciable capital assets Total noncurrent assets Total assets $ LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Unearned revenue Compensated absences payable Bonds payable Total current liabilities Noncurrent liabilities: Accrued interest payable Compensated absences payable Loan payable Bonds payable Total noncurrent liabilities Total liabilities 26,056,851 58,313,373 72,868,483 142,194 24,250,440 126,827,020 403,928,554 548,408,283 683,570,769 15,304,457 2,302,777 5,691 19,859,252 379,741,058 417,213,235 441,463,675 32,957,166 2,302,777 5,691 146,686,272 783,669,612 965,621,518 1,125,034,444 670,993 520,672 1,191,665 3,135,476 1,459,708 2,350,400 3,795,259 5,786,601 1,440,525 6,273,289 24,241,258 1,415,190 194,656 3,671,100 6,167,059 776 193,283 280,000 11,922,064 4,550,666 1,654,364 6,021,500 9,962,318 5,787,377 1,633,808 6,553,289 36,163,322 179,639,383 182,212,131 206,453,389 827,873 316,720 10,064,006 217,047,857 228,256,456 240,178,520 827,873 2,889,468 10,064,006 396,687,240 410,468,587 446,631,909 345,513,895 177,274,142 522,788,037 221,290 274,392 697,914 8,166,897 803,837 74,438,000 644,135 47,028,013 477,788,373 2,976,525 2,663,967 $ 18,891,193 201,805,827 The notes to the basic financial statements are an integral part of this statement. Page 23 $ 1,527,160 504,865 159,412,926 2,572,748 $ 4,048,454 16,423,682 4,068,628 Total (961,840) 671,516 17,652,709 DEFERRED OUTFLOWS OF RESOURCES Loss on refunding NET POSITION Net investment in capital assets Restricted for: Courts Law enforcement Highways and streets Capital projects Community facilities Debt service Transit Unrestricted Total net position 22,008,397 41,889,691 68,799,855 142,194 961,840 855,644 504,865 135,162,486 Business-type Activities $ 221,290 274,392 697,914 11,143,422 803,837 77,101,967 644,135 65,919,206 679,594,200 CITY OF GOODYEAR, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Functions/Programs Primary Government Governmental activities: General government Public safety Highways and streets Public works Culture and recreation Development services Interest on long-term debt Total governmental activities Business-type activities: Water and sewer Sanitation Stadium Total business-type activities Total primary government Expenses $ $ 16,728,173 $ 32,198,189 19,368,539 2,773,348 5,827,309 5,836,254 9,282,269 92,014,081 23,511,395 5,472,534 12,529,987 41,513,916 133,527,997 $ Charges for Services Program Revenues Net (Expense) Revenue and Changes in Net Position Operating Grants Capital Grants and Contributions and Contributions Governmental Activities 1,734,895 $ 1,583,442 433,384 6,899,047 10,650,768 24,767,428 6,641,318 2,182,278 33,591,024 44,241,792 $ $ $ 297,692 3,592,362 195,055 3,629,899 525,810 3,149,647 7,565,511 2,346,231 6,171,185 5,962,050 7,565,511 $ 5,962,050 12,133,235 (67,626,617) General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues Investment income Special assessments Miscellaneous Transfers Total general revenues and transfers 43,775,464 17,109,458 2,611,061 15,285,440 414,689 2,189,906 1,183,618 (5,138,252) 77,431,384 Changes in net position 9,804,767 Net position, beginning of year Net position, end of year The notes to the basic financial statements are an integral part of this statement. Page 24 (14,993,278) (30,122,000) (12,146,278) (2,773,348) (5,393,925) 3,934,834 (6,132,622) (67,626,617) 467,983,606 $ 477,788,373 Net (Expense) Revenue and Changes in Net Position Business-type Activities $ Totals $ 7,218,083 1,168,784 (10,347,709) (1,960,842) (1,960,842) 136,531 222,911 5,138,252 5,497,694 $ (14,993,278) (30,122,000) (12,146,278) (2,773,348) (5,393,925) 3,934,834 (6,132,622) (67,626,617) 7,218,083 1,168,784 (10,347,709) (1,960,842) (69,587,459) 43,775,464 17,109,458 2,611,061 15,285,440 551,220 2,189,906 1,406,529 82,929,078 3,536,852 13,341,619 198,268,975 666,252,581 201,805,827 $ 679,594,200 Page 25 Page 26 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Governmental Funds Financial Statements Governmental Funds Financial Statements Major Funds General Fund operating fund of the City of the City, except those required to be accounted for in other funds. Community Facilities Districts Debt Service Fund debt portion of the City’s Community Facilities Districts, which are component units that provide general infrastructure and capital assets for the property within each district’s boundaries. McDowell Road Commercial Corridor Improvement Debt Service Fund McDowell Road Improvement Assessments. Non-Utility Development Impact Fee Fund fees for all governmental activities. Non-Major Funds Other governmental funds not listed above are non-major funds that are special revenue, capital projects and debt service funds. Page 29 CITY OF GOODYEAR, ARIZONA BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2014 General ASSETS Cash and cash equivalents Investments Taxes receivable Interest receivable Accounts receivable Special assessments receivable Due from other governments Due from other funds Advances to other funds Inventories Prepaids Restricted cash and cash equivalents Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Due to other funds Unearned revenue Total liabilities $ 15,495,261 35,711,078 7,335,942 81,889 1,218,176 Community Facilities Districts Debt Service $ $ $ $ 810,557 961,840 25,261 504,865 111,275 62,256,144 1,504,854 1,402,331 41,035,000 $ 17,541,434 36,191,339 $ $ 126,390 $ 41,143,207 3,548,958 1,378,528 7,834,671 2,828,006 2,954,396 80,278 41,026 18,554,296 41,035,000 18,595,322 41,035,000 14,641,621 108,207 14,641,621 108,207 545,610 625,888 Fund balances (deficits): Nonspendable Restricted Assigned Unassigned Total fund balances 1,491,966 4,816,364 3,779,578 43,707,677 53,795,585 $ 62,256,144 $ 36,191,339 The notes to the basic financial statements are an integral part of this statement. Page 30 108,207 88,974 18,560,931 Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - special assessments Unavailable revenues - intergovernmental Unavailable revenues - other Total deferred inflows of resources Total liabilities, deferred inflows of resources and fund balances McDowell Road Commercial Corridor ID Debt Service $ 41,143,207 Non-Utility Development Impact Fees $ 4,098,700 5,076,677 Non-Major Governmental Funds Total Governmental Funds $ $ 23,228 2,306,079 1,101,936 451,046 2,847 1,374 142,194 650,344 $ 9,198,605 $ 4,655,820 $ $ 1,212,064 $ 285,804 39,695 3,132 152,551 653,966 1,580,067 2,715,215 $ 93,750 1,305,814 57,200 139,226 $ 650,344 1,224,389 7,892,791 (73,354) 1,801,379 9,198,605 Page 31 $ 4,655,820 3,129,112 1,442,026 3,132 3,795,259 653,966 5,786,601 14,810,096 178,504 59,589,296 82,026 545,610 60,395,436 82,026 7,892,791 22,008,247 41,889,691 7,875,962 107,964 1,219,550 59,595,931 142,194 810,557 961,840 675,605 504,865 17,652,709 153,445,115 2,142,310 28,683,372 3,779,578 43,634,323 78,239,583 $ 153,445,115 Page 32 CITY OF GOODYEAR, ARIZONA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2014 Total governmental fund balances $ 78,239,583 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Governmental capital assets Less accumulated depreciation $ 677,750,191 (146,994,617) 530,755,574 Some receivables will not be available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. Property taxes Special Assessments Intergovernmental Other 178,504 59,589,296 82,026 545,610 60,395,436 Interest payable on long-term debt, is not due and payable in the current period and, therefore, is not reported in the funds. (2,347,268) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable Loss on refunding Compensated absences payable (185,912,672) 670,993 (4,013,273) Net position of governmental activities The notes to the basic financial statements are an integral part of this statement. Page 33 (189,254,952) $ 477,788,373 CITY OF GOODYEAR, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 General Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Special assessments Contributions Miscellaneous Total revenues $ 53,293,743 7,460,830 15,285,440 2,305,203 884,735 300,484 Community Facilities Districts Debt Service $ $ 8,499 2,294,980 1,882,547 13,239 3,544,906 9,354,694 3,558,145 1,355,000 2,190,329 64,592,449 3,911,000 5,721,192 393,957 10,026,149 16,516,586 (671,455) 12,816 525,810 1,052,790 81,109,035 Expenditures: Current General government Public safety Highways and streets Public works Culture and recreation Development services Capital outlay Debt service Principal retirement Interest and debt cost Bond issuance costs Total expenditures 5,168,668 McDowell Road Commercial Corridor ID Debt Service 14,809,600 29,016,551 2,045,578 4,715,844 5,823,318 6,371,662 1,484,091 325,805 Excess (deficiency) of revenues over expenditures 3,545,329 Other financing sources (uses): Refunding bonds issued Refunding bonds premium Payment to refunded bond escrow agent Transfer in Transfer out Total other financing sources (uses): 3,714,276 (9,293,886) (5,579,610) 731,742 Changes in fund balances 10,936,976 60,287 12,816 Fund balances, beginning of year 42,858,609 14,581,334 95,391 Fund balances, end of year 14,755,000 1,114,908 (15,138,166) $ 53,795,585 $ 14,641,621 The notes to the basic financial statements are an integral part of this statement. Page 34 $ 108,207 Non-Utility Development Impact Fees $ Non-Major Governmental Funds Total Governmental Funds $ $ 5,115,014 2,346,231 4,040,213 7,493 80,729 11,738 127,524 2,554,484 146,694 9,321,152 2,539 117,634 1,024,746 352,662 5,468,332 15,834,346 29,371,752 5,585,966 2,045,578 4,975,947 5,823,318 18,496,444 260,103 10,523,061 1,601,721 2,691,832 1,134,231 $ 63,577,425 7,460,830 19,325,653 4,658,927 884,735 414,689 5,839,886 2,408,357 1,327,008 105,897,510 10,903,337 12,273,524 9,441,923 9,371,557 393,957 101,340,788 (8,348,853) (2,952,372) 4,556,722 1,642,088 (1,200,730) 441,358 14,755,000 1,114,908 (15,138,166) 5,356,364 (10,494,616) (4,406,510) (8,348,853) (2,511,014) 150,212 16,241,644 4,312,393 78,089,371 7,892,791 Page 35 $ 1,801,379 $ 78,239,583 Page 36 CITY OF GOODYEAR, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Net changes in fund balances - total governmental funds $ 150,212 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Capital contributions Expenditures for capitalized assets Less current year depreciation 4,822,649 16,065,212 (15,281,830) 5,606,031 Issuance of refunding bonds provides current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position. (15,869,908) Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Special assessments Intergovernmental Other (81,442) (2,382,880) (1,155,347) 545,610 (3,074,059) Interest expense in the Statement of Activities differs from the amount reported in the governmental funds because accrued interest was calculated for bonds and notes payable for the Statement of Activities, but is expensed when due for the governmental fund statements. 250,355 Repayments of bond principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Bond principal retirement Bond principal refunded 9,441,923 14,755,000 24,196,923 (2,070,091) (752) (2,070,843) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Disposal of capital assets Compensated absences Premiums, discounts, and losses on refunding are sources and uses of current financial resources for governmental fund reporting, but are amortized over the life of the debt in the Statement of Activities. Changes in net position in governmental activities The notes to the basic financial statements are an integral part of this statement. Page 37 616,056 $ 9,804,767 CITY OF GOODYEAR, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General Government Mayor and council City clerk City manager City attorney Finance ITS Human resources Non-departmental Reserved for contingency Public Safety: Police Fire Municipal court City prosecutor Public Works: Administration Building services Culture and recreation: Parks Recreation and aquatics Development Services: Economic development Development services Engineering Building inspections Code compliance Capital outlay Debt service: Principal retirement Interest and debt cost Total expenditures 50,494,016 4,880,000 15,098,469 1,572,900 791,600 125,500 157,500 17,015 73,137,000 $ 50,494,016 4,880,000 15,098,469 1,582,500 791,600 125,500 157,500 17,015 73,146,600 Variance with Final Budget Positive (Negative) Actual $ 53,293,743 7,460,830 15,285,440 2,305,203 884,735 300,484 525,810 1,052,790 81,109,035 $ 2,799,727 2,580,830 186,971 722,703 93,135 174,984 368,310 1,035,775 7,962,435 296,678 590,913 2,804,330 899,104 3,075,135 3,188,672 2,499,436 6,450,400 16,347,842 296,678 590,913 2,804,130 1,069,104 3,068,115 3,522,392 2,694,925 4,745,392 16,347,842 258,751 520,192 2,500,541 695,367 2,276,383 3,109,516 2,551,655 2,897,195 37,927 70,721 303,589 373,737 791,732 412,876 143,270 1,848,197 16,347,842 15,770,425 12,661,414 974,333 448,089 15,723,617 12,756,021 1,082,333 448,089 15,160,909 12,367,645 1,060,930 427,067 562,708 388,376 21,403 21,022 350,156 2,015,423 350,156 2,015,423 343,398 1,702,180 6,758 313,243 2,990,917 1,306,126 3,480,426 1,298,626 3,423,861 1,291,983 56,565 6,643 610,397 1,392,439 2,290,291 1,422,267 277,911 10,024,314 536,974 1,488,033 2,531,934 1,322,940 259,111 13,871,677 505,134 1,292,210 2,409,325 1,363,009 253,640 6,371,662 31,840 195,823 122,609 (40,069) 5,471 7,500,015 894,091 254,031 89,835,134 1,369,091 437,031 94,110,973 1,484,091 325,805 64,592,449 (115,000) 111,226 29,518,524 Excess (deficiency) of revenues over expenditures (16,698,134) (20,964,373) 16,516,586 37,480,959 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 3,700,000 (10,199,374) (6,499,374) 5,950,000 (12,449,374) (6,499,374) 3,714,276 (9,293,886) (5,579,610) (2,235,724) 3,155,488 919,764 Changes in fund balances (23,197,508) (27,463,747) 10,936,976 38,400,723 42,858,613 42,858,613 42,858,609 Fund balances, beginning of year Fund balances (deficits), end of year Page 38 $ 19,661,105 $ 15,394,866 $ 53,795,585 (4) $ The notes to the basic financial statements are an integral part of this statement. 38,400,719 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Proprietary Funds Financial Statements Proprietary Funds Financial Statements Business-type Activities - Enterprise Funds Water and Sewer Fund ’s water and sewer utility operations. Sanitation Fund Stadium Fund ’s sanitation operations. ’s stadium operations. Governmental Activities - Internal Service Fund Internal Service Funds are or services provided by one department to other departments of the government on a cost reimbursement basis. Fleet Management Fund ’s only internal service fund which provides preventative maintenance, repairs and safety inspections for City vehicles and equipment. Page 41 CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2014 Enterprise Funds Water & Sewer ASSETS Current assets: Cash and cash equivalents Investments Interest receivable Accounts receivable Inventories Total current assets $ Noncurrent assets: Restricted cash and cash equivalents Restricted investments Restricted interest receivable Non-depreciable capital assets Depreciable capital assets Total noncurrent assets Total assets $ 1,446,277 218,994 566 755,142 $ 7,248,879 11,701,289 107,453,288 126,403,456 128,318,506 257,178 257,178 2,678,157 385,001 925,428 113,337 967,244 6,155,746 Noncurrent liabilities: Accrued interest payable Compensated absences payable Advances from other funds Loan payable Bonds payable Revenue bonds payable Total noncurrent liabilities Total liabilities $ 743,150 1,031,088 2,784 138,028 1,915,050 135,671 LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Due to other funds Unearned revenue Compensated absences payable Revenue bonds payable Total current liabilities 398,663 14,734 91,099 66,585 2,703,856 11,313 776 120,112 280,000 8,562,643 14,259 58,912 427,656 2,931,765 827,873 202,428 36,126 78,166 961,840 10,064,006 74,940,552 30,316,520 116,351,379 124,914,022 36,126 463,782 7,309,094 104,481,691 112,830,791 115,762,556 164,723,148 257,178 12,293,816 1,848,875 2,663,967 17,414,511 186,650,501 1,127,650 $ 1,957,197 2,214,375 The notes to the basic financial statements are an integral part of this statement. Page 42 Stadium 2,420,979 8,055,578 2,302,777 5,691 8,157,963 272,030,592 290,552,601 311,428,852 DEFERRED OUTFLOWS OF RESOURCES Loss on refunding NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted Total net position 1,859,027 15,173,600 39,604 3,132,504 671,516 20,876,251 Sanitation $ (480,515) 12,940,951 Enterprise Funds Totals $ 4,048,454 16,423,682 42,954 4,025,674 671,516 25,212,280 Governmental Activities: Internal Service Funds $ 150 448 180,039 180,637 15,304,457 2,302,777 5,691 19,859,252 379,741,058 417,213,235 442,425,515 180,637 520,672 1,415,190 194,656 3,671,100 6,167,059 6,364 17,682 156,591 776 193,283 280,000 11,922,064 180,637 827,873 316,720 961,840 10,064,006 82,249,646 134,798,211 229,218,296 241,140,360 180,637 177,274,142 $ 2,976,525 2,663,967 18,891,193 201,805,827 Page 43 $ CITY OF GOODYEAR, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2014 Enterprise Funds Water & Sewer Operating revenues: Charges for services Miscellaneous Total operating revenues $ Operating expenses: Administration Costs of sales and services Depreciation and amortization Total operating expenses 24,767,428 222,569 24,989,997 Sanitation $ 6,641,318 98 6,641,416 Stadium $ 2,182,278 244 2,182,522 3,547,387 9,136,987 5,371,067 18,055,441 472,970 4,894,558 105,006 5,472,534 2,281,708 1,934,532 2,671,380 6,887,620 6,934,556 1,168,882 (4,705,098) 115,539 (5,455,954) (5,340,415) 2,619 2,619 18,373 (5,642,367) (5,623,994) Income (loss) before capital contributions and transfers 1,594,141 1,171,501 (10,329,092) Capital contributions Transfer in Transfer out 5,962,050 Operating income (loss) Nonoperating revenues (expenses): Investment income Interest expense Total nonoperating revenues (expenses) 8,838,252 Changes in net position Total net position, beginning of year Total net position, end of year $ (2,800,000) (900,000) 4,756,191 271,501 (1,490,840) 181,894,310 1,942,874 14,431,791 186,650,501 $ 2,214,375 The notes to the basic financial statements are an integral part of this statement. Page 44 $ 12,940,951 Enterprise Funds Totals $ 33,591,024 222,911 33,813,935 Governmental Activities: Internal Service Funds $ 2,080,303 6,302,065 15,966,077 8,147,453 30,415,595 601,051 1,479,252 2,080,303 3,398,340 136,531 (11,098,321) (10,961,790) (7,563,450) 5,962,050 8,838,252 (3,700,000) 3,536,852 198,268,975 $ 201,805,827 Page 45 2,080,303 $ CITY OF GOODYEAR, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2014 Water & Sewer Cash flows from operating activities: Receipts from customers Payments to suppliers for goods and services Payments to employees for services Net cash provided (used) by operating activities $ 24,721,506 (9,731,750) (3,450,186) 11,539,570 Cash flows from noncapital financing activities: Transfers in Transfers out Net cash provided (used) for noncapital financing activities (2,800,000) (2,800,000) Cash flows from capital and related financing activities: Proceeds from bond sales Principal paid on long-term debt Interest and fiscal fees Change in capital assets Development impact fees received Net cash provided (used) for capital and related financing activities 513,273 (5,214,126) (5,924,891) (2,070,356) 5,818,587 (6,877,513) Sanitation $ 6,637,888 (4,869,674) (481,697) 1,286,517 Stadium $ 2,052,239 (1,923,029) (2,232,011) (2,102,801) 8,838,252 Cash flows from investing activities: Investment income received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year (900,000) (900,000) 8,838,252 (448,980) (5,772,150) (487,344) (6,708,474) 124,196 3,035 20,421 1,986,253 389,552 47,398 25,404,729 1,275,719 8,975,719 Cash and cash equivalents, end of year $ 27,390,982 $ 1,665,271 $ 9,023,117 Cash and cash equivalents Investments Restricted cash and cash equivalents $ $ 1,446,277 218,994 $ $ 1,859,027 17,476,377 8,055,578 27,390,982 $ 1,665,271 $ 743,150 1,031,088 7,248,879 9,023,117 $ 6,934,556 $ 1,168,882 $ (4,705,098) Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization (Increase) decrease in accounts receivable (Increase) decrease in inventories Increase (decrease) in accounts payable Increase (decrease) in accrued payroll and benefits Increase (decrease) in Due to other funds Increase (decrease) in Unearned Revenue Increase (decrease) in Deposits held for others Increase (decrease) in Compensated absences payable Net cash provided (used) by operating activities Noncash investing, capital and financing activities: Contributions of capital assets Amortization of bond premiums and discounts Amortization of deferred loss on refunding Page 46 5,371,067 (9,480) (78,732) 187,052 43,298 $ $ (259,011) (703,083) 53,903 11,539,570 105,006 (3,528) 2,671,380 (138,028) 24,884 4,471 $ (13,198) 1,286,517 143,463 334,036 17,219 The notes to the basic financial statements are an integral part of this statement. 11,503 24,956 $ $ 7,745 24,741 (2,102,801) 162,147 32,364 Total $ 33,411,633 (16,524,453) (6,163,894) 10,723,286 Governmental Activities-Internal Service Funds $ 2,117,055 (1,520,204) (596,851) 8,838,252 (3,700,000) 5,138,252 513,273 (5,663,106) (11,697,041) (2,557,700) 5,818,587 (13,585,987) 147,652 2,423,203 35,656,167 150 $ 38,079,370 $ 150 $ $ 150 $ 4,048,454 18,726,459 15,304,457 38,079,370 $ 150 $ 3,398,340 $ 8,147,453 (151,036) (78,732) 223,439 72,725 $ $ Page 47 (259,011) (695,338) 65,446 10,723,286 (448) (36,260) (4,244) 4,200 36,752 $ 143,463 496,183 49,583 The notes to the basic financial statements are an integral part of this statement. Page 48 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Fiduciary Funds Financial Statements Fiduciary Funds Financial Statements Pension Trust Fund This fund is used to account for the City’s Volunteer Firefighter’s Relief and Pension Fund, a defined contribution plan for which the assets are held by the City in a trustee capacity. The Pension Trust Fund is reported using the accrual basis of accounting. Agency Funds The City holds these assets as an agent for individuals, private organizations or others in a temporary custodial capacity. The City currently maintains five agency funds. The agency funds account for monies donated for G.A.I.N., Fill-A-Need, Payshare, Shop With A Cop, and Arizona in Action. CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2014 Pension Trust ASSETS Cash and cash equivalents Investments Interest receivable Total assets $ 397,996 60,568 156 458,720 LIABILITIES Accounts payable Deposits held for others Total liabilities NET POSITION Held in trust Agency $ 28,941 $ 6 28,947 $ $ $ 458,720 The notes to the basic financial statements are an integral part of this statement. Page 51 9,030 19,917 28,947 CITY OF GOODYEAR, ARIZONA STATEMENT OF CHANGES IN NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2014 Pension Trust Additions: Investment income Total additions $ Deductions: Benefits Total deductions 2,688 2,688 Changes in net position 13,116 Net position, beginning of year Net position, end of year 15,804 15,804 445,604 $ 458,720 The notes to the basic financial statements are an integral part of this statement. Page 52 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Notes to the Financial Statements Notes to the Financial Statements Notes to the Financial Statements The notes to the basic financial statements include a summary of significant accounting policies and other disclosures considered necessary for a clear understanding of the accompanying financial statements. Note Page 1. Summary of Significant Accounting Policies 57 2. Cash and Investment 66 3. Receivables 69 4. Capital Assets 70 5. Loans Payable 72 6. General Obligation Bonds Payable 73 7. Revenue Bonds Payable 75 8. Community Facilities Districts Bonds Payable 77 9. Changes in Long-Term Liabilities 79 10. Interfund Receivables, Payables, and Transfers 79 11. Contingent Liabilities 80 12. Risk Management 80 13. Retirement Plans 81 14. Deficit Fund Balance 86 15. Fund Balance Classifications 86 16. Commitments 87 Page 55 Page 56 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Goodyear, Arizona (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A. Reporting Entity The City is a municipal entity governed by an elected mayor and six-member governing council (council). As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered financially accountable. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are combined with data from the City, the primary government. The financial reporting entity consists of a primary government, and its component units. The City is a primary government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, component units are combined with the City for financial statement presentation purposes, and are not included in any other governmental reporting entity. Consequently, the City’s financial statements include the funds of those organizational entities for which its elected governing body is financially accountable. Blended Component Units - The Goodyear Community Facilities General District No. 1, Goodyear Community Facilities Utilities District No. 1, Wildflower Ranch Community Facilities General District No. 1, Wildflower Ranch Community Facilities General District No. 2, Estrella Mountain Ranch Community Facilities District, Cottonflower Community Facilities District, Centerra Community Facilities District, Cortina Community Facilities District, Palm Valley Community Facilities District No. 3, and King Ranch Community Facilities District were formed for the purpose of acquiring and improving public infrastructure in specified land areas. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the City. Property owners in the designated areas are assessed for District taxes and thus for the cost of operating the Districts. The City Council serves as the Board of Directors; however, the City has no liability for the Districts’ debt. For financial reporting purposes, transactions of the Districts are combined together and included as if they were part of the City’s operations. Complete financial statements for each of the individual component units may be obtained at the entities administrative offices. Page 57 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) present financial information about the City as a whole. Generally, the effect of interfund activity has been removed from the government-wide financial statements. Net interfund activity and balances between the governmental activities and the business-type activities are shown in the government-wide financial statements. The “doubling up” effect of internal service fund activity has been removed from the government-wide statements with the expenses shown in the various functions on the Statement of Activities. These statements are to distinguish between the governmental and business-type activities of the City. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, state-shared revenues, investment income and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Fund Balances – Governmental Funds As of June 30, 2014, fund balances of the governmental funds are classified as follows: Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed - amounts that can be used only for specific purposes determined by a formal action of City Council. City Council is the highest level of decision-making authority for the City. Commitments may be established, modified, or rescinded only through resolutions approved by City Council. Page 58 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Balances – Governmental Funds (Continued) Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the City’s adopted policy, the City appropriates funding for information technology (IT) replacement, fleet replacement and risk management reserves. Accumulated appropriations which have not been spent are reflected as assigned fund balances. Only City Council or the City’s Finance Director may assign amounts for specific purposes. Unassigned - includes all spendable amounts not contained in the other classifications. The General Fund has Unassigned Funds consisting of a Stabilization Arrangement in the amount of $12.7 million. The Stabilization Arrangement is used to set aside resources to cover unanticipated deficits or revenue reductions that may be caused by adverse economic conditions or public emergency. The amount of the Stabilization Arrangement is a minimum of 3 months of operating expenditures which is estimated from the prior year’s budgeted expenditures. When an expenditure is incurred for purposes for which both restricted and unassigned fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless City Council or the City’s Finance Director has provided otherwise in its commitment or assignment actions. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-wide Financial Statements - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect on internal activity has been eliminated from the government-wide financial statements. Fund Financial Statements - Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt services expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Page 59 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Property taxes, sales taxes, franchise taxes, licenses and permits, charges for service, special assessments and investment income associated with the current fiscal period are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenues as soon as all eligibility requirements imposed by the grantor or provider have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds: General Fund - This fund is the general operating fund of the City. It accounts for all financial resources of the City, except those required to be accounted for in other funds. Community Facilities Districts - Debt Service Fund - This fund accounts for the debt portion of the City’s Community Facilities Districts, which are component units that provide general infrastructure and capital assets for the property within each District’s boundaries. McDowell Road Commercial Corridor Improvement Debt Service Fund - This fund accounts for the debt portion of the McDowell Road Improvement District. Non-Utility Development Impact Fees Fund - This fund collects fees to defray the costs of development of infrastructure. The City reports the following proprietary funds: Water and Sewer Fund - This fund accounts for the City’s water and sewer utility operations. Sanitation Fund - This fund is used to account for the activities of the City’s sanitation operations. Stadium Fund - This fund is used to account for the activities of the City’s stadium operations. Internal Service Fund – This fund is used to account for citywide preventative maintenance, repairs, and safety inspections for City vehicles and equipment. The Internal service fund activities are reported as governmental activities on the government-wide statements. Page 60 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for water, wastewater, and sanitation services. Operating expenses for these funds include the administrative expenses, cost of sales and services, and depreciation. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Fiduciary funds account for assets held by the City in a trustee or agency capacity on behalf of others. The reporting focus is upon net assets and changes in net assets and employs accounting principles similar to proprietary funds. Fiduciary funds are not included in the government-wide financial statements since they are not assets of the City available to support City programs. The City maintains the following fiduciary funds: Pension Trust Fund – This fund is used to account for the Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan Fund, a defined contribution plan for which the assets are held by the City in a trustee capacity. The Pension Trust Fund is reported using the accrual basis of accounting. Agency Funds – The City holds these assets as an agent for individuals, private organizations or others in a temporary custodial capacity. The City currently maintains five agency funds. The five funds account for monies donated by individuals for the GAIN, Payshare (Utility Assistance), Fill-A-Need, Shop With A Cop, and Arizona in Action activities. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources, as they are needed. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. The City’s non-major funds are as follows: Special Revenue Funds Highway User Revenue Fund (HURF) Grants Fund Community Facilities Districts Debt Service Fund Capital Improvement Projects Fund Page 61 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Cash and Cash Equivalents Cash represents amounts in demand deposits and amounts held in trust by financial institutions. The funds held in trust are available to the City upon demand. The City considers short-term investments (including restricted assets) in the State of Arizona investment pool, mutual fund-money market, U.S. Treasury bills and notes with maturities of three months or less at acquisition date to be cash equivalents. F. Investments Goodyear maintains investment accounts for funds that are not legally required to be maintained separately. Each fund's equity in investments represents that fund's position in the consolidated accounts and determines that fund's allocation of interest earned. The Arizona Revised Statutes regulate the investment of surplus cash. Goodyear limits its investments to U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate notes, commercial paper, and money market accounts. Investments are stated at fair value based on quoted market prices and cash equivalents are stated at amortized cost. G. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of inter-fund loans) or “advances to/from other funds” (i.e., the non-current portion of the inter-fund loans). All trade and property tax receivables are shown net of allowance for uncollectibles. Trade accounts receivable in excess of 180 days comprise the trade accounts receivables allowance for uncollectibles. Property taxes are levied by the City and collected by the Maricopa County Treasurer. Property taxes are levied no later than the third Monday of August and are payable in two installments due October 1 of the current year and March 1 of the subsequent year. Taxes become delinquent after the first business day of November and May, respectively. Interest attaches on installments after the delinquent date. A lien attaches to the property on the first day of January preceding the assessment and levy of taxes. Delinquent amounts bear interest at the rate of 16 percent. Maricopa County, at no charge to the taxing entities, bills and collects all property taxes. Public auctions of properties which have delinquent real estate taxes are held in February. Page 62 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Inventory Inventories are stated at average cost using the first-in, first-out (FIFO) flow assumption in determining cost. Inventory in the governmental funds, which consists of expendable supplies held for consumption, is recorded as an expenditure at the time individual inventory items are consumed (i.e. the consumption method) and is offset by a fund balance reserve in the governmental fund financial statements indicating it does not constitute available expendable resources. No reservation is shown in the proprietary funds statements or the government-wide financial statements for inventories. I. Prepaid Items Prepaid items are generally for payments made by the City in the current fiscal year for goods or services to be received in a subsequent fiscal year. Such items recorded as prepaid at the time of the payment and recognized as expenditures/expenses when the related goods or services are received. Prepaid items are offset by fund balance reserve in the governmental fund financial statements indicating it does not constitute available expendable resources. No reservation is shown in the proprietary fund statements or the government-wide financial statements for prepaid items. J. Restricted Assets Certain proceeds of the City’s bonds, as well as certain resources set aside for their repayment, are classified as restricted cash and cash equivalents on the government-wide Statement of Net Position, the Balance Sheet and Proprietary Statement of Net Position because their use is limited by applicable bond covenants. K. Capital Assets Capital assets, which include land, land improvements, artwork, right of way, streetscape, buildings and improvements, vehicles, machinery, equipment, construction in progress, 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. The City defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life of more than one year. Such assets are recorded at historical cost or estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects as they are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Page 63 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Capital Assets (Continued) Certain capital assets of the City are depreciated using the straight-line method over the following estimated useful lives: Assets Infrastructure Land Improvements Building and Improvements Vehicles, Machinery and Equipment Water Rights Years 20-65 15 7-50 3-10 100 The City has a collection of artwork presented both in buildings and public outdoor spaces. The true value of the art is expected to either be maintained at cost or appreciate over time, and thus, the art is not depreciated. If individual pieces are lost or destroyed, the loss is recorded. L. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position contains 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 and so will not be recognized as an outflow of resources (expense/expenditure) until that time. In addition to liabilities, the statement of financial position may 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 and so will not be recognized as an inflow of resources (revenue) until that time. M. Compensated Absences The City’s employee vacation and sick leave policies provide for granting vacation and sick leave with pay. Sick leave and vacation benefits vest at the employee’s current rate of pay. The current and long-term liabilities for accumulated vacation and sick leave are reported on the government-wide financial statements and in the proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignation and retirements. Resources from the General Fund are normally used to liquidate the governmental funds liabilities for compensated absences. N. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts, as well as, the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method over the term of the related debt. Page 64 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Long-term Obligations (continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. 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. O. Inter-fund Activity Flows of cash from one fund to another without a requirement for repayment are reported as inter-fund transfers. Inter-fund transfers between governmental funds are eliminated in the Statement of Activities. Inter-fund services provided and used are not eliminated in the process of consolidation. Inter-fund transfers in the fund statements are reported as other financing sources/uses in governmental funds and follow below the non-operating revenues/expenses in the proprietary funds. P. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Q. Budgetary Data According to the laws of the State of Arizona, all operating budgets must be approved by their governing board on or before the second Monday in August to allow sufficient time for legal announcements and hearings required for the adoption of the property tax levy on the third Monday in August. In April, the proposed budget for the following fiscal year is presented by the City Manager to the City Council. The budget includes proposed expenditures and the means of financing them. Public meetings are held to obtain citizen comment. Prior to June 30, the City Council legally enacts the budget, through the passage of an ordinance. The ordinance sets the limit for expenditures for the year, within the voter mandated state expenditure limitation. Additional expenditures may be authorized if directly necessitated by a natural or man-made disaster as prescribed in the state constitution. There were no supplemental appropriations made during fiscal year 2014. The maximum legal expenditure permitted for the year is the total budget as adopted. All funds of the City have legally adopted budgets. The initial budget for the fiscal year may be amended during the year in a legally permissible manner. The City adopts the budget by departments for the General Fund and by fund for all others. The City Manager is generally authorized to transfer budgeted amounts within any specific department’s expenditure appropriation. Any budget revisions requiring a transfer between departments in the General Fund or a transfer between any other fund must be approved by the City Council. Page 65 Q. Budgetary Data (continued) All unencumbered expenditure appropriations expire at the end of the fiscal year. Encumbered amounts are re-budgeted in the following year as deemed appropriate and necessary after review by the Budget Office. Budgetary carry forwards are approved by the City Council through the budgetary process. The budgets are adopted on a basis differing from GAAP in that for budgetary purposes: (1) current year encumbrances are treated as expenditures; (2) bond proceeds for proprietary funds are considered revenue; (3) capital outlays for enterprise funds are treated as expenditures; (4) debt service principal payments are treated as expenditures for enterprise funds; (5) accrued compensated absences are not recognized as expenditures; (6) depreciation and amortization are not recognized as expenditures. NOTE 2 CASH AND INVESTMENTS At June 30, 2014, cash and cash equivalents are presented as follows: Governmental Activities Cash and cash equivalents Restricted cash and cash equivalents $ $ 22,008,397 17,652,709 39,661,106 Business Activities $ 4,048,454 15,304,457 $ 19,352,911 Fiduciary Funds $ $ 426,937 426,937 Total $ 26,483,788 32,957,166 $ 59,440,954 The restricted cash and cash equivalents are proceeds from debt issuances that are held in trustee accounts for the purpose of major capital improvements as well as funds held in trustee accounts for the purpose of debt service payments. The City also restricts cash and cash equivalents for Utility Development Fees which are reserved for the purpose of major capital improvements. Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s portion of this pool is displayed on the government-wide Statement of Net Position, and on the fund financial statements, as “Cash and cash equivalents” and “Investments”. At June 30, 2014, the City had $8,800 of cash on hand. The carrying amount of the City’s cash in bank totaled $4,501,794 and the bank balance was $8,380,274. Of the bank balance, $500,015 was covered by federal depository insurance and the remaining balance of $7,880,259 was covered by collateral held in the pledging bank’s trust department in the City’s name. Cash Equivalents The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The City’s highly liquid investments that are reflected in the financial statements as cash equivalents total $54,930,360. The investments presented on the statement of cash flows have maturities in excess of three months, but are callable at any time. Page 66 NOTE 2 CASH AND INVESTMENTS (continued) The City invests in the Local Government Investment Pool 5 (LGIP), an investment pool managed by the State Treasurer’s Office that allows governments within the State to pool their funds for investment purposes. The LGIP is not registered with the Securities Exchange Commission under the 1940 Investment Advisors Act. The State Board of Investment has oversight responsibilities of the investment pool in accordance with ARS 35-311. The pool’s policy is to invest in fixed-rate securities with a final maturity less than 36 months from the settlement date of the purchase and variable-rate securities with final maturity less than 5 years. The dollar weighted average portfolio maturity is less than 240 days. The net asset value per share of the pool at June 30, 2014 was $1.00. The Arizona State Treasurer issues a publicly available financial report that includes financial statements and required supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700 West Washington, Phoenix, Arizona 85007. Funds held in the State Treasurer’s Local Government Investment Pool represent a proportionate interest in the pool’s portfolio; however, the City’s portion is not identified with specific investments and is not subject to custodial credit risk. At June 30, 2014, the City’s funds invested with the State Treasurer totaled $31,760,360. The City’s investment in the State of Arizona’s local government investment pool is stated at fair value which also approximates the value of the investment upon withdrawal. Investment Type LGIP Total Investment Type LGIP Total Total $ 31,760,360 $ 31,760,360 Remaining Maturity (In Years) Less Concentration Than 1 of Credit Risk $ 31,760,360 100.00% $31,760,360 100.00% Total $ 31,760,360 $ 31,760,360 Rating as of Year End AAAF/S1+ $ 31,760,360 $ 31,760,360 Investments The City’s portfolio complies with Arizona Revised Statutes (ARS) and the City’s investment policy. The Arizona Revised Statutes regulate the investment of surplus cash. Goodyear limits its investments to U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate notes, commercial paper, and money market accounts. Investments are stated at fair value based on quoted market prices and cash equivalents are stated at amortized cost. Page 67 NOTE 2 CASH AND INVESTMENTS (Continued) At June 30, 2014 the City’s investments included the following: Investment Type U.S. Treasuries Federal Agency Securities Corporate Notes Commercial Paper Goldman Sachs Govt Fund Total Total $ 39,317,526 8,528,357 9,939,853 2,697,779 193,203 $ 60,676,718 Less Than 1 $ 2,755,585 2,005,516 2,697,779 193,203 $ 7,652,083 Investment Type U.S. Treasuries Federal Agency Securities Corporate Notes Commercial Paper Goldman Sachs Govt Fund Total $ 39,317,526 8,528,357 9,939,853 2,697,779 193,203 $ 60,676,718 AA+ $39,317,526 8,528,357 2,418,860 $50,264,743 Remaining Maturity (In Years) More Concentration 1 to 2 than 2 of Credit Risk $ 25,423,587 $ 11,138,354 64.80% 3,306,316 3,216,525 14.06% 2,480,322 7,459,531 16.38% 4.45% 0.32% $ 31,210,225 $ 21,814,410 100.00% Ratings as of Year End AA AA$ - $ 1,238,200 3,828,015 $ 1,238,200 $ 3,828,015 A $ A-1 - 2,454,778 $ 2,454,778 $ AAAm - 2,697,779 $ 2,697,779 $ - 193,203 $193,203 Custodial Credit Risk To control custodial credit risk, State law and the City’s investment policy requires all securities and collateral to be held by an independent third party custodian in the City’s name. The custodian provides the City with monthly market values. The City is invested in treasury money market accounts through the trust department of Wells Fargo and Bankers Trust. The money market accounts have a value of $23,170,000 at June 30, 2014. Interest Rate Risk Interest rate risk is the risk of changes in market interest rates that will adversely affect the fair value of an investment. In order to limit interest rate and market risk, State law and the City’s investment policy sets a maximum maturity on any investment to five years. In addition, the City has adopted an average portfolio duration limitation (ranging from 90 days to 3 years) consistent with the primary investment objective of safety, liquidity and yield. As of June 30, 2014 the average portfolio duration was 1.8 years. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Concentration of Credit Risk The City’s investment policy limits the diversification on both security types and length of maturity. At the time of purchase a maximum of 5% of the market value of the portfolio may be invested in debt issues by any single entity. Debt backed by the U.S. Treasury or Government Sponsored Enterprises (GSEs) are exempt from this concentration criterion. Page 68 NOTE 3 RECEIVABLES Receivables, net of allowance for uncollectibles, as of year-end for the City’s individual major governmental funds and non-major governmental funds in the aggregate are as follows: Receivables: Taxes Interest Accounts Special assessments Total receivables McDowell Road Commerical Community Corridor Facilities Improvement DistrictsDistrict Debt Debt General Service Service Fund Fund Fund $ 7,335,942 $ 88,974 $ 81,889 1,218,176 $ 18,560,931 Governmental Non-Utility Activities: Development Non-Major Internal Impact Fees Governmental Service Fund Fund Fund Total $ $ 451,046 $ $ 7,875,962 23,228 2,847 107,964 1,374 448 1,219,998 41,035,000 - 8,636,007 $ 18,649,905 $ 41,035,000 $ - 23,228 $ 455,267 $ - 59,595,931 448 $ 68,799,855 The following table summarizes the City’s receivables for the enterprise funds as of June 30, 2014: Receivables: Interest Accounts Water and Sewer Fund $ 45,295 3,160,121 Sanitation Fund $ 556 766,142 Stadium Fund $ 2,784 138,028 3,205,416 766,698 140,812 Less: Allowance Net receivables (11,000) (27,617) $ 3,177,799 $ 755,698 $ 140,812 $ Total 48,635 4,064,291 4,112,926 (38,617) $ 4,074,309 Revenues of the Water and Sewer Fund and Sanitation Fund are reported net of uncollectible amounts. Total bad debt expense related to the Water and Sewer Fund revenues and Sanitation Fund revenues for the current year are $48,350 and $1,421, respectively. Page 69 NOTE 4 CAPITAL ASSETS A summary of capital assets activity for the fiscal year ended June 30, 2014 follows: Beginning Ending Balance Governm ental Activities Increases Decreases Balance Capital assets, not being depreciated: Land $ Artw ork 19,461,536 $ - $ - $ - 19,461,536 204,750 - Construction in progress 10,387,773 11,437,354 (13,177,023) 8,648,104 Right of Way 90,128,522 12,100 (689,000) 89,451,622 Streetscape 8,996,008 65,000 129,178,589 11,514,454 - 204,750 9,061,008 Total capital assets not being depreciated (13,866,023) 126,827,020 Capital assets, being depreciated: Land improvements 2,549,608 - Infrastructure 338,766,384 5,080,008 Buildings and improvements 151,199,362 10,043,440 (1,381,091) 159,861,711 38,036,947 7,794,596 (1,166,083) 44,665,460 530,552,301 22,918,044 (2,547,174) 550,923,171 Vehicles, furniture and equipment Total capital assets being depreciated - 2,549,608 343,846,392 Less accumulated depreciation for: Land improvements (432,017) (169,974) (601,991) Infrastructure (79,445,227) (7,815,151) (87,260,378) Buildings and improvements (22,333,506) (5,095,373) Vehicles, furniture and equipment (30,300,506) (2,201,332) 798,469 (31,703,369) Total accumulated depreciation (132,511,256) (15,281,830) 798,469 (146,994,617) 398,041,045 7,636,214 (27,428,879) Total capital assets, being depreciated, net (1,748,705) 403,928,554 Governmental activities capital assets, net Page 70 $ 527,219,634 $ 19,150,668 $ (15,614,728) $ 530,755,574 NOTE 4 CAPITAL ASSETS (Continued) Beginning Ending Balance Business-Type Activities Increases Decreases Balance Capital assets, not being depreciated: Land $ Artw ork 15,404,260 $ - $ - $ 15,000 3,961,571 1,292,292 (945,849) 4,308,014 19,497,809 1,307,292 (945,849) 19,859,252 Infrastructure 210,250,542 720,237 - 210,970,779 Buildings & improvements 205,180,683 909,036 - 206,089,719 14,888,127 508,713 Construction in progress - 15,404,260 131,978 146,978 Total capital assets not being depreciated Capital assets, being depreciated: Vehicles, machinery and equipment (696,790) 18,864,484 214,840 449,183,836 2,352,826 Infrastructure (38,213,515) (3,744,706) - (41,958,221) Buildings and improvements (12,632,641) (3,530,566) - (16,163,207) Water rights Total capital assets being depreciated - 14,700,050 (696,790) 19,079,324 450,839,872 Less accumulated depreciation for: Vehicles, machinery and equipment (9,953,024) (684,659) 683,683 (9,954,000) Water rights amortization (2,835,866) (187,521) - (3,023,387) (63,635,046) (8,147,452) 683,683 (71,098,815) 385,548,790 (5,794,626) (13,107) 379,741,057 Total accumulated depreciation Total capital assets, being depreciated, net Business-Type activities capital assets, net $ 405,046,599 $ (4,487,334) $ (958,956) $ Depreciation expense was charged to functions/programs as follows: Governmental activities: General government Public safety Highway and streets Culture and recreation Public works Total depreciation expense Business-type activities Water and wastewater Sanitation Stadium Total depreciation expense Page 71 $ 585,010 1,567,485 11,732,909 719,325 677,101 $ 15,281,830 $ 5,371,067 105,006 2,671,380 $ 8,147,453 399,600,309 NOTE 5 LOANS PAYABLE The City received three loans from the Water Infrastructure Finance Authority. The first loan was used to acquire the rights and make improvements to existing capacity in the wastewater treatment plant. The second loan was used to finance the planning and design of a pilot recharge project and to construct a well distribution line. The third loan was used for expansion of an effluent sewer facility and to rehabilitate an existing effluent lift station. The loans payable at June 30, 2014, are as follows: Description Business-type activities: Water Infrastructure Finance Authority Loan Water Infrastructure Finance Authority Loan Water Infrastructure Finance Authority Loan Interest Rate (Including Fees) Maturity 4.06% 7/1/07 - 21 4.06% 2.00% Outstanding Principal June 30, 2014 1,965,933 $ - 7/1/07 - 21 3,733,994 - 7/1/10 - 29 4,364,080 - Total Business-type activities $ Due Within One Year $ 10,064,007 $ - Annual debt service requirements to maturity on the loans payable at June 30, 2014 are summarized as follows: Fiscal Year Ending June 30, Page 72 Business-Type Activities Principal 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030 967,770 1,001,834 1,037,176 1,073,846 4,080,930 1,569,474 332,977 Total $ 10,064,007 $ Interest 159,235 301,438 266,735 230,730 193,370 428,673 113,014 3,330 1,696,525 NOTE 6 GENERAL OBLIGATION BONDS PAYABLE Bonds payable at June 30, 2014, consisted of the outstanding general obligation and refunding bonds presented below. The bonds are generally callable with interest payable semiannually. Of the total amounts originally authorized, $167,660,449 remains unissued. The bonds payable at June 30, 2014 are presented below. Description Governmental activities: General Obligation Bonds Series 2007 General Obligation Bonds Series 2008 General Obligation Refunding Bonds Series 2009 General Obligation Bonds Series 2010 (Build America Bonds) General Obligation Refunding Bonds Series 2012 Interest Rate Maturity 3.00 - 5.00% 7/1/08 - 26 - 4.25 - 6.00% 7/1/09 - 38 7,613,099 - 5.25 - 5.125% 7/1/27 - 30 604,500 - 5.40 - 6.30% 7/1/20 - 30 105,000 3.90 - 4.25% 7/1/13 - 18 7,760,000 3.00 - 5.00% 7/1/08 - 26 $ Due Within One Year 7,781,138 $ Total Governmental activities Business-type activities: General Obligation Bonds Series 2007 General Obligation Bonds Series 2008 General Obligation Refunding Bonds Series 2009 General Obligation Bonds Series 2010 (Build America Bonds) General Obligation Refunding Bonds Series 2010 General Obligation Refunding Bonds Series 2014 Outstanding Principal June 30, 2014 $ 23,863,737 $ $ 18,918,862 $ - - 4.25 - 6.00% 7/1/09 - 27 31,161,901 - 5.25 - 5.125% 7/1/27 - 30 4,975,500 - 5.40 - 6.30% 7/1/21 - 30 5,710,000 - 4.018 - 5.125% 7/1/21 - 30 4,610,000 - 15,785,000 - 2.00% 7/1/14 - 20 Total Business-type activities $ 81,161,263 $ - Total $ 105,025,000 $ - Page 73 NOTE 6 GENERAL OBLIGATION BONDS PAYABLE (Continued) Annual debt service requirements to maturity on general obligation bonds payable at June 30, 2014 are summarized as follows: Fiscal Year Ending Governmental Activities Principal June 30, 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2034 2035-2038 Total $ Interest Business-Type Activities Principal Interest $ 2,828,415 2,930,269 3,058,957 2,095,540 4,905,213 4,549,758 1,861,051 1,634,534 1,078,312 $ 978,175 877,431 753,125 639,137 2,368,643 1,171,563 536,119 143,421 $ 4,406,585 4,589,911 4,856,043 5,054,461 22,984,792 21,625,051 10,953,952 6,690,468 3,442,239 3,388,413 3,222,407 3,048,038 2,864,749 11,371,267 6,430,890 2,342,033 587,048 $ 23,863,737 $ 8,545,926 $ 81,161,263 $ 36,697,084 On April 3, 2014, the City issued $15,865,000 of General Obligation Bonds, with an average interest rate of 2.00%, to refund the outstanding GO 2005 Series General Obligation Bonds. Under the terms of the refunding issue, sufficient assets to pay the principal and interest on the refunding bonds issued have been placed in irrevocable trust accounts at commercial banks which will provide an amount sufficient for payment of principal and interest of the issue refunded and payable on July 1, 2014. The transaction resulted in an economic gain (difference between the present value of the debt service on the old and the new bonds) of approximately $1,336,254. The $95,359 deferred amount on retirement of bonds is being amortized over the shorter of the lives for the refunded or the refunding bonds on a straight-line basis. Page 74 NOTE 7 REVENUE BONDS PAYABLE Revenue bonds payable at June 30, 2014 consisted of the outstanding revenue bonds and refunding bonds presented below. The bonds are generally callable after 10 years with interest payable semiannually. The bonds payable at June 30, 2014 are presented below: Description Governmental activities: Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2011A Public Improvement Corporation Municipal Facilities Revenue Tax-Exempt Revenue Bonds, Series 2012A Public Improvement Corporation Municipal Facilities Revenue Taxable Revenue Bonds, Series 2012B McDowell Road Corridor Improvement District Bonds Total Business-type activities Page 75 Due Within One Year Interest Rate Maturity 2.00 - 3.00% 7/1/14 - 21 2.48% 6/15/13 - 6/15/23 8,192,676 823,166 3.44% 6/15/13 - 6/15/23 974,700 94,123 5.25% 1/1/10 - 32 41,035,000 1,425,000 $ 51,982,376 $ 2,427,289 $ 755,000 $ - Total Governmental activities Business-type activities: Revenue Bonds, Series 1999 Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2007A Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2008 Revenue Bonds, Series 2009 Revenue Bonds, Series 2010 Revenue Bonds, Series 2011 Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2011A Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2011B Outstanding Principal June 30, 2014 $ 1,780,000 $ 85,000 4.47 - 6.73% 7/1/07 - 18 4.50 - 5.00% 7/1/19 - 32 44,200,000 - 5.00 - 6.375% 6.75% 5.00 - 5.625% 2.00 - 5.500% 7/1/19 - 31 7/1/2049 7/1/22 - 39 7/1/12 - 41 32,950,000 325,000 14,950,000 15,130,000 280,000 2.00 - 5.25% 7/1/23 - 27 23,515,000 - 3.00% 7/1/2018 1,515,000 - $ 133,340,000 $ 280,000 NOTE 7 REVENUE BONDS PAYABLE (Continued) Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Governmental Activities June 30, 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2044 2045-2049 2050 Total Principal $ 2,427,289 $ 2,671,094 2,780,527 2,895,602 3,011,337 15,301,527 13,195,000 9,700,000 - $ 51,982,376 $ Interest 2,436,870 $ 2,333,953 2,223,794 2,108,569 1,988,333 7,964,952 4,695,338 1,035,824 - Business-Type Activities Principal 280,000 $ 510,000 500,000 475,000 1,995,000 29,805,000 38,095,000 46,685,000 10,310,000 4,360,000 325,000 Interest 7,265,507 7,292,307 7,273,163 7,223,032 7,198,568 30,474,958 22,448,904 9,014,505 2,818,126 391,695 109,688 10,969 24,787,633 $ 133,340,000 $ 101,521,422 Pledged Revenue A. Revenue Bonds Revenue bonds are collateralized by a pledge of the gross revenues of the utility systems, as defined in the bond indentures. The bonds are payable solely from sewer and water customer net revenues. Proceeds of the bonds were used for improvements to the city’s sewer and water system. Principal and interest paid for the current year and total sewer and water customer net revenues were $3,652,883 and $12,305,623, respectively. B. Public Improvement Corporation Municipal Facilities Revenue Bonds The public improvement corporation municipal facilities revenue bonds are secured by excise taxes or other undesignated general fund revenues. Proceeds from the bonds were used to construct a major league baseball training facility as well as other municipal facilities. Principal and interest paid for the current year and total pledged revenues were $6,958,981 and $62,556,655, respectively. C. McDowell Road Corridor Improvement District Bonds The City acts as an administrator for the McDowell Road Corridor Improvement District whereby it collects the assessments levied against owners of property within the established district and disburses the amounts collected to retire the bonds issued to finance the improvements. At June 30, 2014, the special assessments receivable, together with amounts paid in advance and interest to be received over the life of the assessment period, is adequate for the scheduled maturities of the bonds payable and the related interest. The McDowell Road Corridor Improvement District bonds are collateralized by properties within the district. In the event of default by the property owner(s), the City may enforce an auction sale to satisfy the debt service requirements of the improvement bonds. The City is contingently liable on the bonds to the extent that proceeds from auction sales are insufficient to retire outstanding bonds. Page 76 NOTE 8 COMMUNITY FACILITIES DISTRICTS BONDS PAYABLE Community Facilities District General Obligation Bonds are issued by Community Facilities Districts (CFDs), which are special purpose districts created specifically to acquire and improve public infrastructure in specified land areas. CFD bonds are repaid by ad valorem taxes levied directly by the districts and collected by the county. Property owners in the districts are assessed for district taxes and thus for all costs associated with the districts. The City has no liability for CFD bonds. Community facilities district bonds payable at June 30, 2014 consisted of outstanding general obligation and special assessment bonds. The bonds are generally callable with interest payable semiannually. The community facilities district bonds payable at June 30, 2014, are presented below. Description General District No. 1: G.O. Refunding Bonds, Series 2013 Palm Valley: GO Bond Series 2006 GO Bond Series 2007 Utilities District No. 1: G.O. Bond Series 1998 G.O. Bond Series 2000 G.O. Bond Series 2003 G.O. Project Bonds Series 2005 G.O. Refunding Bonds Series 2005 G.O. Bond Series 2007 G.O. Refunding Bonds, Series 2014 Wildflower Ranch General District 1: G.O. Bonds, Series 1997 G.O. Bonds, Series 1998 Wildflower Ranch General District 2: G.O. Bonds, Series 2000 G.O. Bonds, Series 2001 Cottonflower: G.O. Bonds, Series 2003 G.O. Bonds, Series 2004 Estrella Mountain Ranch: Assessment Bonds, Series 2001(A) Assessment Bonds, Series 2002 G.O. Bonds, Series 2005 Assessment Bonds, Series 2007(M) G.O. Bonds, Series 2007 Assessment Bonds, Series 2007(G) Centerra: G.O. Bonds, Series 2005 G.O. Bonds, Series 2006 G.O. Bonds, Series 2008 Cortina: G.O. Bonds, Series 2005 G.O. Bonds, Series 2006 Total Page 77 Interest Rate Maturity Outstanding Principal June 30, 2014 2.0% - 5.0% 07/15/28 $ 10,685,000 4.25 - 5.30 % 4.25 - 5.80 % 07/15/31 07/15/32 3,740,000 3,455,000 130,000 100,000 4.55 - 5.25 % 4.7 - 5.2 % 3.3 - 5.75 % 3.5 - 4.5 % 3.0 - 4.3 % 4.00 - 5.00 % 2.0% - 4.0% 07/15/22 07/15/25 07/15/28 07/15/29 07/15/21 07/15/32 07/15/28 275,000 255,000 155,000 6,420,000 900,000 20,945,000 14,755,000 275,000 255,000 155,000 210,000 95,000 485,000 - 5.875 - 6.5 % 5.2 - 5.75 % 07/15/22 07/15/23 360,000 460,000 30,000 30,000 6.0 - 7.0 % 4.5 - 5.9 % 07/15/25 07/15/26 490,000 535,000 30,000 30,000 4.1 - 5.70 % 3.7 - 6.75 % 07/15/28 07/15/28 1,325,000 1,050,000 60,000 45,000 7.875% 7.375% 5.0 - 5.8 % 4.65 - 5.80 % 4.50 - 6.20 % 6.00 - 6.75 % 07/01/25 07/01/27 07/15/30 07/01/32 07/15/32 07/01/32 3,773,000 3,029,000 4,080,000 6,506,000 11,305,000 6,064,000 313,000 175,000 140,000 249,000 330,000 204,000 5.5% 4.75 - 5.15 % 4.875 - 6.625 % 07/15/29 07/15/31 07/15/32 1,915,000 575,000 670,000 80,000 5,000 10,000 5.0 - 5.7 % 5.0 - 5.375 % 07/15/29 07/15/31 1,350,000 840,000 $ 105,912,000 55,000 20,000 $ 3,846,000 Due Within One Year $ 335,000 NOTE 8 COMMUNITY FACILITIES DISTRICTS BONDS PAYABLE (Continued) Community Facilities District bonds debt service requirements to maturity are as follows: Fiscal year ending June 30, 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2033 Total $ $ Governmental Activities Principal Interest 3,846,000 $ 5,192,397 3,919,000 5,241,455 4,185,000 5,050,058 4,420,000 4,834,806 4,654,000 4,602,920 27,262,000 18,962,369 32,164,000 11,041,811 25,462,000 2,878,027 105,912,000 $ 57,803,843 On June 11, 2014, Community Facilities District No. 1 (CFUD) issued $14,755,000 of General Obligation Bonds, with an average interest rate of 3.99%, to do an advanced refunding for a portion of the CFUD 1998, 2000 and 2003 General Obligation Bonds. Under the terms of the refunding issue, sufficient assets to pay $2,550,000 of the 1998, $5,175,000 of the 2000, $7,030,000 of the 2003 principal and interest on the refunding bonds issued have been placed in irrevocable trust accounts at commercial banks which will provide an amount sufficient for future payment of principal and interest of the issues refunded. The only outstanding balance for these bonds were the principal payments due on July 15, 2014 as of June 30, 2014. The transaction resulted in an economic gain (difference between the present value of the debt service on the old and the new bonds) of approximately $2,090,047. The $383,166 deferred amount on retirement of bonds is being amortized over the shorter of the lives for the refunded or refunding bonds on a straight-line basis. Page 78 NOTE 9 CHANGES IN LONG-TERM LIABILITIES Long-term liabilities activity for the year ended June 30, 2014 was as follows: Beginning Additions Balance Governmental Activities: Compensated absences General obligation bonds payable Community Facilities Districts bonds payable Public improvement bonds Revenue bonds payable 4,012,521 Due Within Balance One Year 1,890,261 1,889,509 4,013,273 1,440,525 - 2,691,832 23,863,737 - 109,823,000 12,431,467 42,390,000 14,755,000 - 18,666,000 1,484,091 1,355,000 105,912,000 10,947,376 41,035,000 3,846,000 1,002,289 1,425,000 3,387,284 1,114,908 297,698 4,204,494 26,555,569 . Premiums Discounts Governmental activities long-term liabilities Reductions Ending (53,264) - (3,329) (49,935) - $ 198,546,577 $ 17,760,169 $ 26,380,801 $ 189,925,945 $ 7,713,814 Beginning Balance Additions Reductions Ending Balance Due Within One Year Business-type Activities: Compensated absences $ 444,555 $ 270,243 $ 204,795 $ 510,003 $ 193,283 General obligation bonds payable 85,384,431 15,865,000 20,088,168 81,161,263 Public improvement bonds 102,180,000 102,180,000 Revenue bonds payable 31,665,000 505,000 31,160,000 280,000 Loans payable 10,998,942 934,935 10,064,007 Premiums 3,315,101 608,632 518,410 3,405,323 Discounts (600,956) (22,227) (578,729) Business-type activities long-term liabilities $ 233,387,073 $ 16,743,875 $ 22,229,081 $ 227,901,867 $ 473,283 NOTE 10 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS At June 30, 2014, interfund balances were as follows: Fund General Fund Receivable Amount $ Non-Major Governmental Funds Stadium Fund Internal Service Fund Total $ Payable Amount 1,772,397 $ - - 653,966 - 961,840 156,591 1,772,397 $ 1,772,397 All interfund borrowing resulted from the borrowing of funds to cover cash deficit, except for the $961,840 payable amount in the Stadium Fund. This amount is an interfund borrowing transaction from the general fund for the commercial retail liners at the ballpark and will be paid back when the commercial retail liners are sold to enterprises. Page 79 NOTE 10 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Continued) Transfers Out Fund General Fund $ 9,293,886 Transfers In $ 3,714,276 Non-Major Governmental Funds 1,200,730 1,642,088 Water and Sewer Fund 2,800,000 - 900,000 - 8,838,252 Sanitation Fund Stadium Fund Total $ 14,194,616 $ 14,194,616 All transfers made during the year were to cover operations or debt service as approved during budget development, or were necessary for grant matching purposes. NOTE 11 CONTINGENT LIABILITIES Federal and State grants and loans - The City has received a number of grants and loans from both the Federal and State governments. Although the programs have been audited, not all audits have been approved as of June 30, 2014; however, the City expects no material disallowances of expenditures. Lawsuits - The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments - The City is contingently liable for $1.5 million to be paid from the general fund to entities that the City has entered into job credit agreements for establishing businesses within the City. These credits will be paid out when the established criteria are met for job creation and other economic growth factors as specified by the development agreements. Each year the City appropriates for these obligations through the budget process. NOTE 12 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The City’s insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the City is a participating member. The Arizona Municipal Risk Retention Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has authority to assess its members additional premiums should reserve and annual premiums be insufficient to meet the pool’s obligations. The maximum liability for the City for the fiscal year is $500,000 and the deductible is $250,000 per occurrence. The City has funds set aside in the budget for the fiscal year ending June 30, 2014 for any expected claims in excess of $250,000. The City has workers compensation insurance through CopperPoint Mutual Insurance Company for potential work-related accidents. Page 80 NOTE 13 RETIREMENT PLANS All full-time City employees are covered by one of two contributory retirement and pension plans, which are administered by the State of Arizona under State Statute. Plan Descriptions Arizona State Retirement Plan - The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined benefits pension plan that covers general employees of the City. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of ARS Title 38, Chapter 5, Article 2. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. ASRS issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at Arizona State Retirement System, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling (602) 240-2200 or (800) 621-3778. Arizona Public Safety Personnel Retirement System - The Public Safety Personnel Retirement System (PSPRS) is an agent multiple-employer defined benefit pension plan that covers public safety personnel who are regularly assigned hazardous duty as employees of the State of Arizona or one of its political subdivisions. The PSPRS acting as a common investment and administrative agent is governed by a five-member board, known as The Fund Manager, and 167 local boards according to the provisions of ARS Title 38, Chapter 5, Article 4. The City contributes to one PSPRS plan for police and one for firefighters. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. PSPRS issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at PSPRS, 3010 E. Camelback Rd., Suite 200, Phoenix, AZ 85016-4416 or by calling (602) 255-5575. Funding Policy Cost-sharing plan – The Arizona State Legislature establishes and may amend active plan members’ and the City’s contribution rates. For the year ended June 30, 2014, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.54% (11.30% retirement and 0.24% long-term disability) of the member’s annual covered payroll and the City was required by statute to contribute at the actuarially determined rate of 11.54% (10.70% retirement, 0.60% for health insurance premium, and 0.24% long-term disability) of the members’ annual covered payroll. The City’s contributions to ASRS for the years ended June 30, 2014, 2013, and 2012 were $2,327,261, $2,133,623, and $2,022,865, respectively. The City contribution for the current and two preceding years, all of which were equal to the required contributions, were as follows: Years ended June 30, 2014 2013 2012 Page 81 Retirement $ 2,157,847 1,969,820 1,859,002 Long-term Disability Health Insurance $ 121,012 117,973 118,660 $ 48,402 45,830 45,203 Total $ 2,327,261 2,133,623 2,022,865 NOTE 13 RETIREMENT PLANS (Continued) Agent plans – The Arizona State Legislature establishes and may amend active plan members’ and the City’s contribution rates. For the year ended June 30, 2014, active PSPRS members were required by statute to contribute 10.35% of the members’ annual covered payroll, and the City was required to contribute at the actuarially determined rate of 17.47% (16.53% retirement and 0.94% health insurance premium) of the covered payroll to the Plan for the Police and 13.40% (12.76% retirement and 0.64% health insurance premium) of the covered payroll to the Plan for the Firefighters. Annual Pension Cost The City’s pension cost for the agent plan for the year ended June 30, 2014, and related information follows: Contribution Rates: City – retirement City – health insurance premium Plan members Annual pension cost Retirement Health insurance premium Pension contributions made Retirement Health insurance premium Actuarial valuation date Actuarial cost method Actuarial assumptions: Investment rate of return Projected salary increases Includes payroll growth but not cost-of-living adjustment Amortization method Remaining amortization period Asset valuation method Post retirement benefit increases Page 82 PSPRS – Police 16.53% 0.94% 10.35% $ $ 1,110,743 63,164 PSPRS - Fire 12.76% 0.64% 10.35% $ $ 930,142 46,653 $ 1,110,743 $ 63,164 June 30, 2012 Entry Age Normal $ 930,142 $ 46,653 June 30, 2012 Entry Age Normal 8.00% 5.0% - 9.0% 8.00% 5.0% - 9.0% 5.0% 5.0% Level Percent Level Percent Closed Closed 24 years underfunded 24 years underfunded 20 years overfunded 20 years overfunded 7-year smoothed market 7-year smoothed market Based on Income Based on Income NOTE 13 RETIREMENT PLANS (Continued) Trend Information – Information for the PSPRS plan as of the most recent actuarial valuations follows: Annual Pension Cost (APC) Plan PSPRS - Police - Pension June 30, 2014 June 30, 2013 June 30, 2012 $ Percentage of APC Contributed Net Pension Obligation 1,110,743 1,012,173 782,123 100.0% 100.0% 100.0% - 63,164 62,643 59,516 100.0% 100.0% 100.0% - 930,142 852,786 664,242 100.0% 100.0% 100.0% - 46,653 50,038 45,320 100.0% 100.0% 100.0% - PSPRS - Police - Health Insurance June 30, 2014 June 30, 2013 June 30, 2012 PSPRS - Fire - Pension June 30, 2014 June 30, 2013 June 30, 2012 PSPRS - Fire - Health Insurance June 30, 2014 June 30, 2013 June 30, 2012 Schedule of Funding Progress - An analysis of funding progress for each of the agent plans as most recent actuarial valuations; June 30, 2012 reporting period determines the rates for fiscal year 2014. For this valuation, fiscal years prior to 2008 (which were prior to the implementation of GASB Statement Nos. 43 and 45), the pension and health insurance benefit amounts were aggregated. In fiscal year 2008, GASB Statement Nos. 43 and 45 measurements are made and reported, these benefits are disaggregated and reported separately. Actuarial Accrued Liability PSPRS - Goodyear Police Pension Plan: Valuation Date June 30, 2014 2013 2012 Page 83 Actuarial Value of Assets (a) $ 19,960,316 19,286,661 17,528,841 Actuarial Accrued Liability (AAL) (b) $ 29,232,918 25,016,493 22,655,039 Unfunded AAL (b-a) $ 9,272,602 5,729,832 5,126,198 Annual Funded Covered Ratio (a/b) Payroll (c) 68.3% $6,630,426 77.1% 6,582,586 77.4% 6,321,537 Unfunded AAL as a Percent of Covered Payroll ([b-a]/c) 139.85% 87.05% 81.09% NOTE 13 RETIREMENT PLANS (Continued) PSPRS - Goodyear Police Health Insurance Plan: Valuation Date June 30, 2014 2013 2012 Actuarial Value of Assets (a) $ 638,160 - Actuarial Accrued Liability (AAL) (b) $ 732,738 708,612 699,552 Unfunded AAL as a Percent of Covered Payroll ([b-a]/c) 1.43% 10.76% 11.07% Unfunded AAL (b-a) $ 94,578 708,612 699,552 Annual Funded Covered Ratio (a/b) Payroll (c) 87.1% $6,630,426 0.0% 6,582,586 0.0% 6,321,537 Unfunded AAL (b-a) $ 1,839,335 1,115,917 834,353 Annual Funded Covered Ratio (a/b) Payroll (c) 92.0% $7,338,828 94.5% 7,232,073 95.3% 6,662,566 Unfunded AAL as a Percent of Covered Payroll ([b-a]/c) 25.06% 15.43% 12.52% Annual Funded Covered Ratio (a/b) Payroll (c) 73.6% $7,338,828 0.0% 7,232,073 0.0% 6,662,566 Unfunded AAL as a Percent of Covered Payroll ([b-a]/c) 2.29% 7.52% 7.14% PSPRS - Goodyear Fire Pension Plan: Fire Pension Valuation Date June 30, 2014 2013 2012 Actuarial Value of Plan Assets (a) $ 21,012,076 19,244,419 16,917,670 Actuarial Accrued Liability (AAL) (b) $ 22,851,411 20,360,336 17,752,023 PSPRS – Goodyear Fire Health Insurance Plan: Valuation Date June 30, 2014 2013 2012 Actuarial Value of Plan Assets (a) $ 466,897 - Actuarial Accrued Liability (AAL) (b) $ 634,667 543,584 475,476 Unfunded AAL (b-a) $ 167,770 543,584 475,476 Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Actuarially determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Page 84 NOTE 13 RETIREMENT PLANS (Continued) Annual Required Contribution PSPRS - Goodyear Police Health Insurance Plan: Valuation Date June 30, 2012 2011 2010 Fiscal Year Ended 30-Jun 2014 2013 2012 Normal Cost (a) 0.35% 0.41% 0.59% Actuarial Accrued Liability (b) 0.59% 0.54% 0.40% Total (a+b) 0.94% 0.95% 0.99% Dollar Amount $ 65,513 63,184 68,923 Total (a+b) 0.64% 0.70% 0.67% Dollar Amount $ 47,011 49,356 48,534 PSPRS – Goodyear Fire Health Insurance Plan: Valuation Date June 30, 2012 2011 2010 Fiscal Year Ended 30-Jun 2014 2013 2012 Normal Cost (a) 0.26% 0.30% 0.43% Actuarial Accrued Liability (b) 0.38% 0.40% 0.24% The Health Insurance Subsidy payments reported for valuation year 2012 were $12,441 and $1,560 for the Police plan and the Fire plan, respectively. Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan The Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan is a single-employer defined contribution plan, which was approved by the City Council on February 27, 1990, under Arizona Revised Statutes Section 9-981. The authority to establish and amend benefit provisions rests with the City Council. In December 1999, the council revised the pension and benefit program for the part-time firefighters. The City discontinued using part-time firefighters as of December 1, 2005. The assets of the plan are valued annually and the earnings or loss is distributed among the participant’s accounts in the plan. The only expenditures being made from this fund are administration fees, benefit payments, and refunds to those firefighters who leave the service of the Fire Department before becoming eligible for pension benefits. The cost of administering the plan is financed from investment earnings. Retirement with full benefits can be at age fifty (50) or fifteen years of credited service. This plan was fully vested as of June 30, 2014. As of June 30, 2014, there were 6 eligible employees participating in the plan. The plan is administered by LPL Financial. As of June 30, 2014, the plan’s assets consisted of the following: Cash and Cash Equivalents Investments Interest Receivable $ $ Page 85 397,996 60,568 156 458,720 NOTE 13 RETIREMENT PLANS (Continued) The plan has never had an actuarial valuation; however, benefits cannot exceed plan assets. The market values of mutual funds are determined from readily available market quotations. The fund uses the accrual basis of accounting. Contributions are recognized when earned; benefits and refunds are expensed when incurred. Separate audited financial statements of this employee benefit plan are not available. NOTE 14 DEFICIT FUND BALANCE Grants Fund Deficit Fund Balance - At June 30, 2014, the Grants Fund contains a deficit fund balance of $73,354 in the fund financial statements. Future revenues are expected to cover this deficit. NOTE 15 FUND BALANCE CLASSIFICATIONS General Fund balances (deficits): Nonspendable: Advances to other funds Inventories Prepaid items Restricted: Charter mandates Court Law enforcement Debt Service Development impact fees Capital projects Highway user funds Transit Community facilities districts operations Assigned: IT replacement Fleet replacement Risk management Unassigned Total fund balances Page 86 $ Community Facilities Districts Debt Service McDowell Road Commerical Corridor Improvement Debt Service Non-Utility Development Impact Fees 961,840 25,261 504,865 Non-Major Governmental Funds $ 650,344 3,676,547 221,290 274,392 14,641,621 108,207 803,837 (73,354) $ 1,801,379 1,484,148 1,502,483 792,947 43,634,323 $ 78,239,583 98,876 274,106 47,570 644,135 $ 14,641,621 $ 108,207 $ 7,892,791 961,840 675,605 504,865 3,676,547 221,290 274,392 14,848,704 7,892,791 274,106 47,570 644,135 803,837 7,892,791 1,484,148 1,502,483 792,947 43,707,677 $ 53,795,585 Total Governmental Funds NOTE 16 COMMITMENTS The City has active construction projects as of June 30, 2014. The balances for work not yet complete as of June 30, 2014 were as follows: Adaman Water Interconnect Vadose BOR Grant PW Facility Wash Rack, Fuel Station PD Evidence Facility Remediated Water Line Transportation Master Plan Corgett Capacity Expansion Stadium Infrastructure Goodyear Waterline and Storm Sewer Sarival/VanBuren, I-10 Roadway to Sonoran Valley Corgett Capacity Expansion Roadway to Sonoran Valley WRF 2 MGD Expansion Design $ $ 70,000 12,925 339,420 55,222 274,670 61,525 51,808 57,921 630,653 63,876 88,664 67,833 25,130 521,597 2,321,244 These commitments are being financed from existing fund balances. Page 87 Page 88 Other Supplementary Information Other Supplementary Information OTHER SUPPLEMENTARY INFORMATION City of Goodyear Comprehensive Annual Financial Report 2013-2014 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Combining Statements and Budgetary Schedules Combining Statements and Budgetary Schedules Combining Statements & Budgetary Schedules City of Goodyear Comprehensive Annual Financial Report 2013-2014 Non-Major Government Funds Financial Statements Non-Major Government Funds Financial Statements Special Revenue Funds • Highway User Revenue Fund (HURF) – Funded through fuel taxes distributed from the State of Arizona. • Grants Fund – Based on application to granting agencies by the City and availability of funding by grantors. • Community Facilities Districts – CFD’s represent special districts formed for the p p y. Debt Service Fund was established for the accumulation of resources and the servicing of by the proprietary funds. Revenues are generated from the secondary pro Capital Improvement Projects Fund by proprietary funds. overnment’s major capital Page 95 CITY OF GOODYEAR, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 Special Revenue Highway User Revenue ASSETS Cash and cash equivalents Investments Taxes receivable Interest receivable Accounts receivable Due from other governments Inventories Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Due to other funds Unearned revenue Total liabilities $ 20,020 Grants $ $ 1,400,850 10,947 2,847 902 472 142,194 $ $ 650,344 1,017,949 127,789 39,695 $ 1,765,224 $ 1,412,269 $ 38,175 $ 90,958 152,551 138,310 1,580,067 1,756,552 320,035 515,656 606,614 1,818 82,026 82,026 Fund balances (deficits): Nonspendable Restricted Unassigned Total fund balances Page 96 518,247 1,101,936 346,683 Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - intergovernmental Total deferred inflows of resources Total liabilities, deferred inflows of resources and fund balances Community Facilities Districts 1,818 650,344 47,570 803,837 (73,354) (73,354) 697,914 $ 1,017,949 $ 1,765,224 803,837 $ 1,412,269 Debt Service Capital Projects Debt Service Capital Improvement Projects $ 63,974 Total NonMajor Governmental Funds $ 302,988 $ $ 302,988 $ $ 28,882 $ 93,416 $ 157,390 $ 3,132 3,132 28,882 55,382 98,876 274,106 98,876 274,106 157,390 Page 97 285,804 39,695 3,132 152,551 653,966 1,580,067 2,715,215 57,200 82,026 139,226 55,382 $ 2,306,079 1,101,936 451,046 2,847 1,374 142,194 650,344 4,655,820 $ 302,988 650,344 1,224,389 (73,354) 1,801,379 $ 4,655,820 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 Special Revenue Highway User Revenue Revenues: Taxes Intergovernmental Charges for services Investment income Miscellaneous Total revenues $ Grants $ 3,681,156 $ 359,057 7,493 6,659 411 71,262 3,752,829 Expenditures: Current General government Public safety Highways and streets Capital outlay Debt service Principal retirement Interest and debt cost Total expenditures Community Facilities Districts 1,037,629 3,542 75,432 1,116,603 373,209 1,024,746 5,402,171 352,662 66,161 193,618 5,402,171 612,441 1,024,746 (1,649,342) (239,232) 91,857 Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): 1,450,137 (191,951) 1,258,186 191,951 Changes in fund balances (391,156) (47,281) 91,857 Fund balances (deficits), beginning of year 1,089,070 (26,073) 711,980 Excess (deficiency) of revenues over expenditures Fund balances (deficits), end of year Page 98 $ 697,914 191,951 $ (73,354) $ 803,837 $ Debt Service Capital Projects Debt Service Capital Improvement Projects 4,077,385 341 785 4,077,726 785 5,115,014 4,040,213 7,493 11,738 146,694 9,321,152 1,408,103 1,024,746 352,662 5,468,332 1,601,721 2,691,832 1,134,231 3,826,063 1,408,103 2,691,832 1,134,231 12,273,524 251,663 (1,407,318) (2,952,372) (994,503) (994,503) (14,276) (14,276) 1,642,088 (1,200,730) 441,358 (742,840) (1,421,594) (2,511,014) 841,716 1,695,700 4,312,393 $ Page 99 98,876 $ Total NonMajor Governmental Funds $ $ 274,106 $ 1,801,379 Page 100 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Fiduciary Funds Financial Statements Fiduciary Funds Financial Statements Combining Statement of Net Position Statement of Changes in Net Position Agency Funds • G.A.I.N. • Fill-A-Need • Payshare (Utility Assistance) • Shop With A Cop • Arizona in Action Page 103 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2014 GAIN ASSETS Cash and cash equivalents Interest receivable Total assets LIABILITIES Accounts payable Deposits held for others Total liabilities Page 104 Payshare (Utility Assistance) $ 9,030 $ $ 9,030 $ $ 9,030 $ $ 9,030 $ 299 6 305 Fill-A-Need $ 7,717 $ 7,717 $ 305 305 $ 7,717 7,717 Shop With A Cop Arizona in Action Totals $ 8,665 $ 3,230 $ $ 8,665 $ 3,230 $ $ $ Page 105 $ 8,665 8,665 $ $ 3,230 3,230 $ 28,941 6 28,947 9,030 19,917 28,947 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS YEAR ENDED JUNE 30, 2014 Balance June 30, 2013 Brownfield EPA Cleanup: Assets Cash and cash equivalents Liabilities Accounts Payable Deposits held for others Total liabilities GAIN: Assets Cash and cash equivalents Liabilities Accounts Payable Deletions Balance June 30, 2014 $ 88,339 $ - $ (88,339) $ - $ $ 87,115 1,224 88,339 $ - $ (87,115) $ (1,224) $ (88,339) $ - $ 9,030 $ - $ (0) $ 9,030 $ 9,030 $ - $ (0) $ 9,030 $ 101 $ 101 $ - $ $ 299 6 305 Payshare Assets Cash and cash equivalents Receivable Total Assets $ 198 $ 6 204 $ Liabilities Deposits held for others $ 204 $ 101 $ - $ 305 Fill-A-Need: Assets Cash and cash equivalents $ 4,654 $ 3,063 $ - $ 7,717 Liabilities Deposits held for others $ 4,654 $ 3,063 $ - $ 7,717 Shop With A Cop: Assets Cash and cash equivalents $ 8,516 $ 149 $ - $ 8,665 Liabilities Deposits held for others $ 8,516 $ 149 $ - $ 8,665 Arizona in Action: Assets Cash and cash equivalents $ - $ 3,230 $ - $ 3,230 Liabilities Deposits held for others $ - $ 3,230 $ - $ 3,230 $ 110,737 $ 6 110,743 $ 6,543 $ (88,339) $ 6,543 $ (88,339) $ 28,941 6 28,947 96,145 $ 14,598 110,743 $ - $ (87,115) $ 6,543 (1,224) 6,543 $ (88,339) $ 9,030 19,917 28,947 Total - All Agency Funds Assets Cash and cash equivalents Receivable Total Assets Liabilities Accounts Payable Deposits held for others Total liabilities Page 106 Additions $ $ $ City of Goodyear Comprehensive Annual Financial Report 2013-2014 Budgetary Comparison Schedules Budgetary Comparison Schedules Major Governmental Funds CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY FACILITIES DISTRICTS DEBT SERVICE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original & Final Revenues: Taxes Investment income Special assessments Contributions Total revenues Expenditures: Debt service Principal retirement Interest and debt cost Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures $ 5,135,933 2,895 4,747,071 2,044,809 11,930,708 Actual $ 8,382,000 9,212,659 5,168,668 8,499 2,294,980 1,882,547 9,354,694 Variance with Final Budget Positive (Negative) $ 32,735 5,604 (2,452,091) (162,262) (2,576,014) 17,594,659 3,911,000 5,721,192 393,957 10,026,149 4,471,000 3,491,467 (393,957) 7,568,510 (5,663,951) (671,455) 4,992,496 400,000 400,000 14,755,000 1,114,908 (15,138,166) 731,742 14,355,000 1,114,908 (15,138,166) 331,742 Changes in fund balances (5,263,951) 60,287 5,324,238 Fund balances, beginning of year 12,399,634 14,581,334 2,181,700 Other financing sources (uses): Refunding bonds issued Refunding bonds premium Payment to refunded bond escrow agent Total other financing sources (uses): Fund balances, end of year Page 109 $ 7,135,683 $ 14,641,621 $ 7,505,938 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MCDOWELL ROAD COMMERCIAL CORRIDOR ID DEBT SERVICE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Revenues: Investment income Special assessments Total revenues $ Expenditures: Debt service Principal retirement Interest and debt cost Total expenditures Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 110 Final $ Actual $ 3,544,906 3,544,906 3,544,906 3,544,906 13,239 3,544,906 3,558,145 1,355,000 2,189,907 3,544,907 1,355,000 2,190,407 3,545,407 1,355,000 2,190,329 3,545,329 78 78 (1) (501) 12,816 13,317 95,390 95,390 95,391 1 95,389 $ $ Variance with Final Budget Positive (Negative) 94,889 $ 108,207 $ 13,239 13,239 $ 13,318 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NON-UTILITY DEVELOPMENT IMPACT FEES YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Revenues: Charges for services Investment income Miscellaneous Total revenues Expenditures: Current Public safety Highways and streets Culture and recreation Capital outlay Total expenditures Changes in fund balances $ 3,775,298 6,151 Final $ 3,775,298 6,151 Actual $ 3,781,449 3,781,449 2,346,231 80,729 127,524 2,554,484 153,249 272,600 14,063,745 14,489,594 153,249 272,600 13,904,296 14,330,145 2,539 117,634 260,103 10,523,061 10,903,337 (2,539) 35,615 12,497 3,381,235 3,426,808 (10,708,145) (10,548,696) (8,348,853) 2,199,843 16,241,644 16,241,644 Fund balances, beginning of year Fund balances (deficits), end of year Page 111 Variance with Final Budget Positive (Negative) $ (10,708,145) $ (10,548,696) $ 7,892,791 $ $ (1,429,067) 74,578 127,524 (1,226,965) 18,441,487 Page 112 City of Goodyear Comprehensive Annual Financial Report 2013-2014 Budgetary Comparison Schedules Budgetary Comparison Schedules Non-Major Governmental Funds and Enterprise Funds CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HIGHWAY USER REVENUE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment income Miscellaneous Total revenues $ Expenditures: Current Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 115 $ 3,682,124 10,000 Final $ 3,682,124 10,000 Actual $ 3,681,156 Variance with Final Budget Positive (Negative) $ 411 71,262 3,752,829 (968) (10,000) 411 46,262 35,705 25,000 3,717,124 25,000 3,717,124 5,887,575 370 5,887,945 5,984,054 370 5,984,424 5,402,171 5,402,171 581,883 370 582,253 (2,170,821) (2,267,300) (1,649,342) 617,958 2,190,500 2,190,500 2,190,500 2,190,500 1,450,137 (191,951) 1,258,186 (740,363) (191,951) (932,314) 19,679 (76,800) (391,156) (314,356) 813,526 813,526 1,089,070 275,544 833,205 $ 736,726 $ 697,914 $ (38,812) CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GRANTS YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment income Total revenues $ Expenditures: Current General government Public safety Highways and streets Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 2,350,000 Final $ 2,350,000 2,350,000 2,350,000 2,046,356 368,739 2,415,095 1,065,293 467,073 80,000 3,500 918,967 2,534,833 (65,095) (184,833) Actual $ 359,057 7,493 6,659 373,209 Variance with Final Budget Positive (Negative) $ 193,618 612,441 1,065,293 114,411 13,839 3,500 725,349 1,922,392 (239,232) (54,399) 191,951 191,951 191,951 191,951 352,662 66,161 Other financing sources (uses): Transfer in Total other financing sources (uses): (1,990,943) 7,493 6,659 (1,976,791) Changes in fund balances (65,095) (184,833) (47,281) 137,552 Fund balances (deficits), beginning of year (26,074) (26,074) (26,073) 1 Fund balances (deficits), end of year Page 116 $ (91,169) $ (210,907) $ (73,354) $ 137,553 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY FACILITIES DISTRICTS YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original & Final Revenues: Taxes Investment income Miscellaneous Total revenues $ 1,031,126 700 307,029 1,338,855 Actual $ 1,037,629 3,542 75,432 1,116,603 Variance with Final Budget Positive (Negative) $ 6,503 2,842 (231,597) (222,252) Expenditures: Current General government Total expenditures 1,476,913 1,476,913 1,024,746 1,024,746 452,167 452,167 Changes in fund balances (138,058) 91,857 229,915 479,166 711,980 232,814 Fund balances, beginning of year Fund balances, end of year Page 117 $ 341,108 $ 803,837 $ 462,729 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Revenues: Taxes Investment income Total revenues $ 4,135,351 Final $ 4,135,351 Actual $ Variance with Final Budget Positive (Negative) 4,135,351 4,135,351 4,077,385 341 4,077,726 Expenditures: Debt service Principal retirement Interest and debt cost Total expenditures 2,982,609 1,477,583 4,460,192 2,851,216 1,133,476 3,984,692 2,691,832 1,134,231 3,826,063 159,384 (755) 158,629 Excess (deficiency) of revenues over expenditures (324,841) 150,659 251,663 101,004 (994,503) (994,503) (994,503) (994,503) (893,499) Other financing sources (uses): Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 118 $ (324,841) 150,659 (742,840) 841,716 841,716 841,716 516,875 $ 992,375 $ 98,876 $ $ (57,966) 341 (57,625) (893,499) CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL IMPROVEMENT PROJECTS YEAR ENDED JUNE 30, 2014 Variance with Final Budget Positive (Negative) Budgeted Amounts Original Revenues: Investment income Total revenues $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Debt issuance Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances (deficits), end of year Page 119 $ Final $ Actual $ 785 785 $ 785 785 31,217,780 31,217,780 23,077,974 23,077,974 1,408,103 1,408,103 21,669,871 21,669,871 (31,217,780) (23,077,974) (1,407,318) 21,670,656 29,463,122 27,213,122 (27,213,122) (14,276) (27,227,398) (5,556,742) 29,463,122 27,213,122 (14,276) (14,276) (1,754,658) 4,135,148 (1,421,594) 1,695,700 1,695,700 1,695,700 (58,958) $ 5,830,848 $ 274,106 $ (5,556,742) CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPERATIONS - BUDGET AND ACTUAL WATER AND SEWER ENTERPRISE FUND YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Operating revenues: Charges for services Miscellaneous Total operating revenues $ Operating expenses: Administration Cost of sales and services Depreciation Total operating expenses 22,599,830 28,491 22,628,321 $ 22,599,830 28,491 22,628,321 24,767,428 222,569 24,989,997 $ 2,167,598 194,078 2,361,676 19,754,136 3,147,143 2,874,185 6,934,556 4,060,371 16,568 (11,276,235) (11,259,667) 16,568 (11,276,235) (11,259,667) 115,539 (5,455,954) (5,340,415) 98,971 5,820,281 5,919,252 Income before capital contributions and transfers (8,112,524) (8,385,482) 1,594,141 9,979,623 Capital contributions Transfers in Transfers out 4,910,042 1,284,289 (3,434,289) 4,910,042 1,284,289 (3,884,289) 5,962,050 (2,800,000) 1,052,008 (1,284,289) 1,084,289 Change in net position (5,352,482) (6,075,440) 4,756,191 10,831,631 181,894,310 33,211 Net position, beginning of year Net position, end of year Page 120 19,481,178 $ 283,077 6,786,685 (5,371,067) 1,698,695 Nonoperating revenues (expenses): Investment income Interest and debt cost Total nonoperating revenues (expenses) 3,830,464 15,923,672 Actual 3,547,387 9,136,987 5,371,067 18,055,441 Operating income (loss) 3,830,464 15,650,714 Variance with Final Budget Positive (Negative) 181,861,099 $ 176,508,617 181,861,099 $ 175,785,659 $ 186,650,501 $ 10,864,842 CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPERATIONS - BUDGET AND ACTUAL SANITATION ENTERPRISE FUND YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Operating revenues: Charges for services Miscellaneous Total operating revenues $ 6,396,820 $ 6,396,820 6,396,820 6,396,820 Operating expenses: Administration Cost of sales and services Depreciation Total operating expenses 541,399 4,799,014 483,399 4,866,114 5,340,413 Operating income (loss) Nonoperating revenues (expenses): Investment income Total nonoperating revenues (expenses) Income before transfers Transfers out Change in net position Net position, beginning of year Net position, end of year Page 121 $ Variance with Final Budget Positive (Negative) Actual $ 6,641,318 98 6,641,416 $ 244,498 98 244,596 5,349,513 472,970 4,894,558 105,006 5,472,534 10,429 (28,444) (105,006) (123,021) 1,056,407 1,047,307 1,168,882 (121,575) 1,837 1,837 1,837 1,837 2,619 2,619 782 782 1,058,244 1,049,144 1,171,501 122,357 (900,000) (900,000) (900,000) 158,244 149,144 271,501 1,942,874 1,942,874 1,942,874 2,101,118 $ 2,092,018 $ 2,214,375 122,357 $ 122,357 CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPERATIONS - BUDGET AND ACTUAL STADIUM ENTERPRISE FUND YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Operating revenues: Charges for services Miscellaneous Total operating revenues $ 1,635,900 $ 1,626,300 1,635,900 1,626,300 2,091,378 7,494,485 2,188,227 8,177,576 9,585,863 Operating income (loss) Nonoperating revenues (expenses): Investment income Interest and debt cost Total nonoperating revenues (expenses) Operating expenses: Administration Cost of sales and services Depreciation Total operating expenses Variance with Final Budget Positive (Negative) Actual $ 2,182,278 244 2,182,522 $ 555,978 244 556,222 10,365,803 2,281,708 1,934,532 2,671,380 6,887,620 (93,481) 6,243,044 (2,671,380) 3,478,183 (7,949,963) (8,739,503) (4,705,098) 4,034,405 2,000 (5,544,752) (5,542,752) 2,000 (5,362,263) (5,360,263) 18,373 (5,642,367) (5,623,994) (13,492,715) (14,099,766) (10,329,092) 8,008,874 8,008,874 8,838,252 Change in net position (5,483,841) (6,090,892) (1,490,840) Net position, beginning of year 14,431,791 14,431,791 14,431,791 Income before transfers Transfers in Net position, end of year Page 122 $ 8,947,950 $ 8,340,899 $ 12,940,951 16,376 (280,104) (263,728) 3,770,677 829,378 4,600,052 $ 4,600,052 Capital Asset Schedules Capital Asset Schedules CAPITAL ASSET SCHEDULES City of Goodyear Comprehensive Annual Financial Report 2013-2014 CITY OF GOODYEAR CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL ACTIVITIES SCHEDULE BY SOURCE June 30, 2014 Governmental funds capital assets Land Land Improvements Right of Way Streetscape Buildings and improvements other than buildings Vehicles, machinery and equipment Infrastructure Artwork Construction in progress Total governmental funds capital assets Investment in governmental funds capital assets by source: Government funds Total governmental funds capital assets Page 125 $ 19,461,536 2,549,608 89,451,622 9,061,008 159,861,711 44,665,460 343,846,392 204,750 8,648,104 $ 677,750,191 $ 677,750,191 $ 677,750,191 CITY OF GOODYEAR CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY June 30, 2014 Function and Activity General Government Public Safety Highways and Streets Culture and Recreation Public Works Total governmental funds capital assets Page 126 Land, Land Improvements, Artwork, Right of Way, Streetscape $ 3,608,908 34,892 98,512,630 12,697,973 5,874,121 $ 120,728,524 Buildings $ Improvements Other Than Buildings $ 813,910 21,231,465 2,380,333 80,421 88,710,160 15,659,680 6,233,450 $ 46,797,667 $ 113,064,044 24,752,292 Vehicles, Machinery and Equipment Infrastructure $ $ 7,863,866 23,882,989 6,039,609 2,844,957 4,034,039 $ 44,665,460 Page 127 Construction in Progress $ 6,730,040 569,933 673,109 675,022 $ 20,583,147 49,320,527 537,781,900 32,691,542 37,373,075 $ 8,648,104 $ 677,750,191 343,846,392 $ 343,846,392 Total CITY OF GOODYEAR CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY For the fiscal year ended June 30, 2014 Function and Activity General Government Public Safety Highways and Streets Culture and Recreation Public Works Total governmental funds capital assets Page 128 Governmental Funds Capital Assets July 1, 2013 Additions $ 21,193,431 36,715,355 533,904,260 31,513,656 36,404,188 $ 12,379,685 13,347,858 5,975,679 1,579,785 1,149,491 $ (12,989,969) $ (742,686) (2,098,038) (401,899) (180,604) 20,583,147 49,320,526 537,781,900 32,691,542 37,373,075 $ 659,730,890 $ 34,432,498 $ (16,413,197) $ 677,750,191 Deductions Governmental Funds Capital Assets June 30, 2014 Statistical Section Statistical Section STATISTICAL SECTION City of Goodyear Comprehensive Annual Financial Report 2013-2014 STATISTICAL SECTION Contents Page Financial Trends (Table 1 – 6) 132 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity (Table 7 – 13) 150 These schedules contain information to help the reader assess the City’s most significant local revenue sources, property tax and sales and uses taxes. Debt Capacity (Table 14 – 18) 164 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Statistics (Table 19 – 20) These schedules offer economic and demographic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information (Table 21 – 23) 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. Sources: Page 131 Unless otherwise noted, the information in these schedules is derived from the Comprehensive annual financial reports for the relevant year. 171 173 City of Goodyear Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2014 2013 2012* 2011 2010 Governmental Activities Net investment in capital assets Restricted Unrestricted Total Governmental Activities Net Position $ 345,513,895 85,246,465 47,028,013 477,788,373 $ 333,034,884 99,128,020 35,820,702 467,983,606 $ 329,064,345 108,246,415 20,147,669 457,458,429 $ 327,503,686 110,105,296 18,249,626 455,858,608 $ 317,162,459 115,881,050 19,272,548 452,316,057 Business-type Activities Net investment in capital assets Restricted Unrestricted Total Business-type Activities Net Position 177,274,142 5,640,492 18,891,193 201,805,827 178,456,590 3,196,131 16,616,254 198,268,975 178,432,900 3,799,026 11,229,680 193,461,606 179,254,929 3,567,237 9,263,439 192,085,605 191,582,614 4,365,725 195,948,339 522,788,037 90,886,957 65,919,206 $ 679,594,200 511,491,474 102,324,151 52,436,956 $ 666,252,581 507,497,245 112,045,441 31,377,349 $ 650,920,035 506,758,615 113,672,533 27,513,065 $ 647,944,213 508,745,073 115,881,050 23,638,273 $ 648,264,396 Primary Government Net investment in capital assets Restricted Unrestricted Total Primary Government Net Position Source: Statement of Net Position City financial records and reports *Net position adjusted for adoption of GASB Statement 65 Page 132 Table 1 Fiscal Year 2009 2008 2007 2006 2005 $ 309,491,989 117,787,315 20,522,420 447,801,724 $ 256,047,572 70,835,115 36,122,934 363,005,621 $ 206,294,183 60,388,579 57,992,720 324,675,482 $ 144,405,463 67,199,030 49,858,294 261,462,787 $ 127,120,944 92,391,268 26,380,488 245,892,700 101,366,083 8,166,207 109,532,290 61,259,814 24,329,033 85,588,847 55,662,610 3,498,896 59,161,506 307,660,266 60,388,579 66,158,927 $ 434,207,772 205,665,277 67,199,030 74,187,327 $ 347,051,634 182,783,554 92,391,268 29,879,384 $ 305,054,206 199,696,564 (11,409,545) 188,287,019 509,188,553 117,787,315 9,112,875 $ 636,088,743 Page 133 159,530,687 (13,193,174) 146,337,513 415,578,259 70,835,115 22,929,760 $ 509,343,134 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2014 Expenses Governmental Activities: General Government Police Financial Services Community Services** Information Services Fire Municipal Services Human Resources Development Services Culture and Recreation Highways and Streets Public Works Interest on Long-term Debt Total Governmental Activities Expenses Business-type Activities Water Utility Wastewater Utility Sanitation Stadium* Total Business-type Activities Expenses Total Primary Government Expenses $ $ $ $ 7,924,693 17,827,312 2,740,549 3,511,275 12,882,880 1,487,996 2,551,655 5,836,254 5,827,309 19,368,539 2,773,348 9,282,269 92,014,081 13,832,573 9,678,822 5,472,534 12,529,987 41,513,916 $ 133,527,997 2013 $ $ $ $ 7,402,342 15,448,830 2,687,728 3,317,691 12,538,574 1,360,884 2,884,001 7,194,428 5,539,612 14,355,644 3,090,345 10,411,562 86,231,641 11,570,223 10,342,364 5,246,666 12,204,354 39,363,607 $ 125,595,248 2012 $ $ $ 8,857,442 14,136,863 2,661,635 3,292,093 11,286,370 1,266,469 2,275,991 6,225,917 4,962,070 13,179,678 4,168,252 10,441,684 82,754,464 11,907,022 8,747,778 5,154,201 11,634,491 37,443,492 $ 120,197,956 $ 2011 $ $ $ 8,366,129 14,788,614 2,866,494 2,710,111 13,243,603 1,442,029 1,822,793 5,150,677 4,439,181 14,798,670 3,658,756 10,710,302 83,997,359 $ $ $ 6,469,757 16,050,100 3,190,931 454,550 2,722,449 11,413,558 1,497,249 1,929,973 2,555,353 4,023,639 12,179,531 11,070,853 11,210,504 84,768,447 $ 12,454,200 8,279,732 4,815,314 11,958,862 37,508,108 $ 10,475,189 7,649,704 4,782,565 11,547,500 34,454,958 $ 121,505,467 $ 119,223,405 Note: * Stadium Fund did not have operating activity until 2008 ** Community Services was reorganized into General Government and Development Services for fiscal year 2011 N/A data was not separated in these years Page 134 2010 Table 2 Fiscal Year 2008 2009 2007 2006 2005 $ 4,701,916 15,580,923 2,842,884 1,248,219 2,743,877 12,249,685 1,636,533 2,222,189 9,583,326 5,435,750 8,436,341 14,370,096 12,001,714 $ 93,053,453 $ 9,260,326 18,491,397 2,751,164 1,290,021 2,931,295 8,840,019 1,484,507 1,998,317 14,731,322 1,909,303 9,104,717 59,138,044 9,710,526 $ 141,640,958 $ 5,020,742 11,091,150 2,233,303 1,277,245 1,769,833 10,129,091 1,163,005 1,976,324 19,683,385 3,181,071 9,581,333 25,397,680 5,785,031 $ 98,289,192 $ 3,007,708 9,305,303 1,768,327 1,108,528 1,551,418 5,839,807 853,289 1,361,992 6,668,282 2,016,304 13,536,118 1,791,319 5,573,064 $ 54,381,459 4,238,904 7,798,053 2,888,511 1,012,533 1,434,932 7,275,586 981,256 1,276,457 4,613,424 2,591,911 8,007,969 6,398,665 4,567,604 $ 53,085,805 $ 11,608,878 7,046,385 5,090,150 6,475,960 $ 30,221,373 $ 11,794,505 5,189,053 4,839,626 861,000 $ 22,684,184 $ 10,866,043 4,872,792 4,401,267 $ 20,140,102 $ 9,722,925 4,313,533 3,435,486 $ 17,471,944 $ 15,150,219 N/A 2,588,541 $ 17,738,760 $ 123,274,826 $ 164,325,142 $ 118,429,294 $ 71,853,403 $ 70,824,565 Page 135 $ City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2014 Program Revenue Governmental Activities: Charges for Services: General Government Fire Police Municipal Services Public Works Culture and recreation Developmental Services Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business-type Activities Charges for Services: Water Utility Wastewater Utility Sanitation Stadium* Operating Grants and Contributions Capital Grants and Contributions Total Business-type Activities Revenues $ $ 1,734,895 546,613 168,001 868,828 433,384 6,899,047 7,565,511 6,171,185 24,387,464 2013 $ $ 2012 2,075,520 817,463 358,873 809,334 304,128 6,206,750 4,654,268 11,358,824 26,585,160 $ $ 2011 865,484 676,932 130,566 825,971 322,215 4,163,050 7,636,691 9,701,254 24,322,163 $ $ 2010 1,128,675 500,562 128,109 849,060 325,552 3,879,823 5,818,158 13,951,581 26,581,520 $ $ 863,192 336,303 320,967 852,500 287,805 3,615,255 5,648,867 16,436,375 28,361,264 $ 12,417,092 12,350,336 6,641,318 2,182,278 5,962,050 39,553,074 $ 11,746,194 10,921,207 6,368,920 1,741,609 7,987,680 38,765,610 $ 10,573,584 9,531,422 6,115,977 1,633,230 9,252,599 37,106,812 $ 9,391,674 8,243,147 5,774,010 1,564,324 4,570,849 29,544,004 $ 9,022,576 7,235,503 5,790,357 1,530,799 6,211,533 29,790,768 Total Primary Government Revenues $ 63,940,538 $ 65,350,770 $ 61,428,975 $ 56,125,524 $ 58,152,032 Net (Expense)/Revenue Governmental Activities Business-type Activities Total Primary Government Net Revenues $ (67,626,617) $ (59,646,481) $ (58,432,301) $ (57,415,839) $ (597,997) (336,680) (7,964,104) (1,960,842) $ (69,587,459) $ (60,244,478) $ (58,768,981) $ (65,379,943) $ Page 136 (56,407,183) (4,664,190) (61,071,373) Table 2 Fiscal Year 2009 $ 2008 2007 301,151 24,054 240,293 730,571 357,039 4,776,076 4,843,140 102,028,190 $ 113,300,514 $ 3,988,792 57,630 210,707 686,135 343,274 12,183,231 4,587,630 85,108,447 $ 107,165,846 $ $ $ $ 8,880,151 6,389,190 5,625,426 1,014,221 25,000 41,595,562 63,529,550 8,894,793 6,244,742 5,145,922 762,200 27,405,133 48,452,790 $ 176,830,064 $ 155,618,636 $ $ $ 20,247,061 33,308,177 53,555,238 Page 137 $ $ 2006 396,770 54,887 128,040 638,390 3,527,777 272,516 13,241,940 895,854 62,732,783 81,888,957 $ 7,588,225 6,137,152 4,392,794 20,000 24,414,623 42,552,794 $ 124,441,751 (34,475,112) $ 25,768,606 (8,706,506) $ 2005 286,419 61,456 67,264 529,007 126,800 14,584,804 648,756 26,761,281 43,065,787 $ $ 5,952,571 4,846,569 3,185,387 240,000 26,016,946 40,241,473 $ 8,895,239 3,775,636 2,786,148 10,853,019 26,310,042 $ 83,307,260 $ 54,764,744 $ $ 133,367 434,179 259,993 10,631,653 523,405 16,472,105 28,454,702 (16,672,751) $ (11,315,672) $ (24,631,103) 22,412,692 22,769,529 8,571,282 5,739,941 $ 11,453,857 $ (16,059,821) City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2014 Revenues and Other Changes in Net Position Governmental Activities: Taxes Intergovernmental Interest and Investment Income Special Assessments* Miscellaneous Transfers Total Governmental Activities Business-type Activities Interest and Investment Income Proceeds from the sale of water rights Mitigation proceeds Miscellaneous Transfers Total Business-type Activities Total Primary Government Changes in Net Position Governmental Activities Business-type Activities Total Primary Government $ $ $ 2013 63,495,983 $ 15,285,440 414,689 2,189,906 1,183,618 (5,138,252) 77,431,384 $ $ $ 136,531 222,911 5,138,252 5,497,694 $ $ $ 2012 58,957,595 $ 14,194,960 439,982 1,455,665 (4,876,544) 70,171,658 $ $ $ $ 92,945 117,103 3,892,665 4,102,713 82,929,078 $ 75,577,024 $ 9,804,767 3,536,852 13,341,619 $ 10,525,177 4,807,369 15,332,546 $ $ $ Page 138 55,623,884 10,907,518 179,114 2,026,285 (7,815,285) 60,921,516 71,819 638,611 3,390,940 4,101,370 $ $ 57,527 4,352,000 100,698 7,815,285 12,325,510 69,028,647 $ 65,059,760 $ 73,247,026 6,493,633 3,766,033 10,259,666 $ 3,542,551 $ (3,862,734) (320,183) $ 4,514,333 7,661,320 12,175,653 $ $ *Prior to fiscal year 2014 Special Assessments were shown in Public Works-Capital Grants and Contributions Source: Statement of Activities City financial records and reports 2010 55,301,512 $ 53,595,119 $ 12,704,826 9,699,146 319,017 227,446 493,244 827,619 (3,892,665) (3,390,940) 64,925,934 $ 60,958,390 $ 95,839 432,983 4,876,544 5,405,366 $ 2011 Table 2 Fiscal Year 2008 2009 2007 2006 2005 $ 59,003,971 $ 61,251,635 $ 59,428,806 $ 48,726,571 $ 31,498,052 12,236,437 12,654,235 15,053,501 6,997,920 5,973,538 148,687 4,268,448 4,723,886 4,436,598 1,079,720 911,254 4,075,011 1,029,445 1,486,027 1,641,295 (9,444,077) (56,622) (117,062) 634,153 (7,751,307) $ 64,549,042 $ 72,805,252 $ 80,179,016 $ 61,530,054 $ 40,826,758 $ 121,900 78,586 7,751,307 7,951,793 1,379,832 212,708 9,444,077 $ 11,036,617 $ $ 72,500,835 $ 83,841,869 $ 81,709,767 $ 64,329,728 $ 40,288,482 $ 84,796,103 41,259,970 $ 126,056,073 $ 38,330,140 36,375,158 $ 74,705,298 $ 63,505,623 23,943,443 $ 87,449,066 $ 50,214,382 25,569,203 $ 75,783,585 $ 16,195,655 8,033,006 $ 24,228,661 $ Page 139 $ $ 1,447,446 26,683 56,622 1,530,751 $ $ 715,181 1,950,000 17,431 117,062 2,799,674 $ $ 88,211 7,666 (634,153) (538,276) Page 140 Table 3 City of Goodyear Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year Property Taxes 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 $ 17,109,458 16,218,397 16,572,825 18,862,731 21,908,223 22,332,774 18,004,766 12,289,010 9,769,889 8,583,676 Sales & Use Taxes $ 43,775,464 40,222,752 36,364,557 32,729,749 31,183,096 34,205,906 41,036,060 45,240,436 37,420,013 22,475,427 Source: City financial records and reports Page 141 Franchise Taxes $ 2,611,061 2,529,456 2,460,521 2,316,820 2,233,909 2,195,748 2,071,378 1,817,387 1,479,868 1,166,525 State Shared Revenues - not Restricted for Specific Programs State Shared State Revenue Highway User Sales Sharing Revenue $ 7,998,669 7,467,727 7,195,568 5,201,107 4,940,934 5,355,676 6,101,593 6,307,272 3,225,710 2,600,534 $ 7,275,727 6,667,701 5,509,258 4,498,039 5,966,584 6,880,761 6,503,557 5,252,405 1,979,970 1,738,442 $ 3,672,571 3,554,687 3,269,285 2,752,001 2,769,619 3,008,499 3,401,589 3,493,824 1,792,240 1,634,562 City of Goodyear Sales & Use Taxes by Industry Classification Last Ten Fiscal Years (Unaudited) Fiscal Year 2014 Mining & Government Construction Manufacturing Utilities Wholesale Trade Retail Trade Restaurant & Bar Real Estate Hotels Services Miscellaneous $ 4,024 7,988,471 931,362 3,819,536 1,072,608 15,787,043 5,450,424 4,467,373 849,052 1,764,488 968,896 Total* $ 43,103,277 2013 $ 970 7,027,296 759,858 3,656,309 977,475 14,265,735 5,079,528 4,405,695 885,571 1,700,258 873,005 $ 39,631,700 2012 $ 9,534 4,755,592 701,876 3,469,559 924,842 13,576,350 4,763,951 3,480,031 873,241 1,640,296 1,414,929 $ 35,610,202 2011 $ 5,234 3,251,977 642,255 3,275,325 598,098 12,950,291 4,415,910 3,510,263 764,996 1,771,527 1,055,398 $ 32,241,274 2010 $ 15,141 5,365,079 535,972 3,085,682 540,630 11,569,427 4,161,539 2,692,806 820,902 1,388,178 640,388 $ 30,815,744 * Total may differ from Governmental Activities Tax Revenues By Source because of difference in reporting periods. Source: Arizona Department of Revenue North American Industry Code System (NAICS) Summary Page 142 Table 4 Fiscal Year 2008 2009 $ 11,412 12,779,596 508,454 2,448,686 538,279 9,568,935 3,687,991 2,227,491 854,203 1,176,780 622,042 $ 34,423,869 Page 143 $ 6,391 17,256,194 451,147 2,397,905 775,843 9,526,853 3,740,867 2,698,200 1,006,334 1,451,721 1,035,306 $ 40,346,762 2007 $ 1,055 19,305,179 405,882 2,115,344 815,930 9,789,605 3,996,446 2,603,404 944,488 3,725,380 2,286,662 $ 45,989,375 2006 $ 371 15,029,430 600,356 1,640,534 746,566 8,727,607 3,441,051 1,506,238 889,513 643,325 641,428 $ 33,866,419 2005 $ 17,116 8,915,836 301,797 671,037 177,946 6,397,775 2,544,019 1,011,414 719,181 441,333 633,503 $ 21,830,957 City of Goodyear Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2014 General Fund Reserved Unreserved $ 2013 - $ 2012 - $ 2011* - $ 2010 - $ 17,812,619 10,742,777 - Nonspendable: Advances to other funds Inventories Prepaid items 961,840 961,840 961,840 961,840 25,261 8,916 16,258 3,627 - 504,865 486,842 500,911 422,681 - Restricted by: 3,676,547 3,528,982 3,377,572 3,209,321 - Court Charter mandates 221,290 234,813 261,229 198,457 - Law enforcement 274,392 208,085 125,812 129,231 - Transit 644,135 543,022 - - - Assigned to: IT replacement 1,484,148 170,684 437,873 407,961 - Fleet replacement 1,502,483 3,032,429 1,730,168 383,225 - 792,947 357,741 811,244 558,310 - 43,707,677 33,325,255 23,074,844 21,481,088 - Risk management insurance Unassigned Total General Fund All Other Governmental Funds Reserved, Reported in: Debt Service Funds Capital Projects Funds Community Facilities District Unreserved, Reported in: Special Revenue Funds Capital Projects Funds $ 53,795,585 $ 42,858,609 $ 31,297,751 $ 27,755,741 $ 28,555,396 $ - $ - $ - $ - $ 14,891,228 1,393,549 47,213 - - - - 20,452,179 - 650,344 595,675 412,916 289,782 - - 36,182 45,225 46,238 - 14,848,704 15,482,259 15,663,838 15,113,512 - 7,892,791 16,241,644 21,720,718 21,992,019 - 47,570 493,395 400,610 285,914 - 274,106 1,695,700 - - Nonspendable: Inventories Prepaid items Restricted by: Debt service Development impact fees Highway user funds Capital Projects Community Facilities Districts operations Unassigned Total All Other Governmental Funds 803,837 (73,354) $ 24,443,998 711,980 (26,073) $ 35,230,762 538,410 (9,854) $ 38,771,863 Source: Balance Sheet Governmental Funds City financial records and reports *Starting with fiscal year 2011, fund balances were stated in classification required by GASB54 Page 144 536,230 (2,336,765) $ 35,926,930 $ 36,784,169 Table 5 Fiscal Year 2009 $ 2008 29,117,875 $ 2007 42,219,809 $ 2006 61,037,128 $ 2005 53,853,901 $ 29,393,457 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 29,117,875 $ 42,219,809 $ 61,037,128 $ 53,853,901 $ 29,393,457 $ 13,597,749 4,110,554 - $ 15,356,746 10,942,787 - $ $ $ 23,153,403 1,435,331 25,851,665 27,462,037 $ 8,726,046 7,810,178 20,649,813 10,220,953 7,833,170 21,303,978 19,835,781 3,354,296 6,643,132 9,704,731 14,475,469 46,019,494 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 42,297,037 $ 79,613,235 $ 47,406,990 $ 52,327,225 $ 76,842,826 Page 145 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Special assessments Contributions Miscellaneous Total Revenues Expenditures General Government Police Financial Services Community Services Information Technology Fire Municipal Services Human Resources Development Services Culture and Recreation Highways and Streets Public Works Debt Service: Principal retirement Interest and debt cost Capital outlay Total Expenditures Excess of Revenues over (under) Expenditures Page 146 2014 2013 2012 2011 2010 $ 63,577,425 7,460,830 19,325,653 4,658,927 884,735 414,689 5,839,886 2,408,357 1,327,008 105,897,510 $ 58,970,605 6,793,070 18,723,318 6,322,025 809,334 439,982 5,845,306 4,024,175 567,839 102,495,654 $ 55,397,903 4,729,946 19,319,623 3,876,918 825,971 319,017 5,844,915 3,099,952 361,202 93,775,447 $ 53,909,300 4,541,951 15,825,858 3,978,325 849,060 225,588 4,859,749 2,707,926 157,090 87,054,847 $ 55,590,530 629,979 16,464,531 7,402,083 846,143 178,715 6,522,924 3,042,851 1,942,018 92,619,774 7,030,866 15,733,974 2,740,549 3,511,275 12,576,848 1,060,930 2,551,655 5,823,318 4,975,947 5,585,966 2,045,578 8,060,892 14,516,164 2,202,587 2,868,061 12,248,125 1,360,884 2,884,003 5,232,999 4,884,349 4,674,325 2,093,312 8,248,394 13,764,506 2,661,635 2,501,280 11,098,327 1,266,469 2,275,991 4,557,391 4,115,701 3,340,208 2,967,386 8,194,510 13,506,835 2,160,642 2,346,507 10,538,180 1,389,266 1,822,793 4,376,985 3,936,203 3,808,328 3,047,742 6,943,802 13,752,875 2,605,931 2,339,204 10,615,080 1,497,249 1,929,973 4,654,052 3,882,621 4,098,986 3,075,759 9,441,923 9,765,514 18,496,444 101,340,788 10,226,228 10,987,906 18,252,039 100,491,874 12,433,024 10,687,152 6,437,600 86,355,064 11,254,524 10,645,162 9,234,659 86,262,336 10,942,758 11,158,130 13,494,149 90,990,569 4,556,722 2,003,780 7,420,383 792,511 1,629,205 Table 6 Fiscal Year 2009 2008 2007 2006 2005 $ 58,734,426 3,091,729 16,827,730 6,387,350 686,557 148,220 3,065,304 3,403,370 593,684 92,938,370 $ 61,112,204 7,160,922 17,361,565 19,117,473 678,594 4,268,447 2,228,149 8,260,888 4,075,010 124,263,252 $ 59,346,833 8,905,743 16,456,618 14,921,767 584,316 4,723,886 2,228,646 14,245,039 1,046,124 122,458,972 $ 48,669,770 10,593,032 7,691,531 12,590,311 482,604 4,436,598 2,197,445 1,717,842 1,433,513 89,812,646 $ 31,501,700 7,899,726 6,288,957 9,894,288 364,301 1,079,719 2,580,510 2,401,107 1,641,295 63,651,603 3,945,126 14,082,452 4,803,801 1,248,219 2,221,606 11,961,508 1,567,179 2,215,237 9,723,957 4,393,748 5,686,483 3,901,157 5,486,915 13,295,314 4,850,217 1,329,505 2,834,417 11,277,737 1,547,460 1,995,841 9,262,010 4,667,176 3,994,494 4,261,005 8,637,828 10,262,437 2,209,677 1,255,467 1,622,556 8,842,402 1,102,875 1,973,845 6,028,162 3,431,934 4,756,383 4,294,102 3,871,939 8,674,983 1,550,946 1,190,116 1,593,403 7,332,103 848,612 1,360,762 6,599,788 2,381,569 3,647,507 2,154,782 2,482,603 7,853,958 1,553,016 1,012,533 1,434,932 5,163,911 704,584 1,276,457 6,636,525 2,128,218 2,128,408 1,917,725 7,392,618 11,930,502 47,556,824 132,630,417 5,141,143 10,466,384 135,249,363 215,658,981 4,836,000 5,740,194 71,999,738 136,993,600 3,777,600 5,313,243 14,819,302 65,116,655 5,327,354 5,825,352 10,039,532 55,485,108 (39,692,047) (91,395,729) (14,534,628) 24,695,991 8,166,495 Page 147 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2014 Other Financing Sources and (Uses) Transfer in Transfer out Debt issuance Debt premium Refunding bonds Refunding bonds premium Payment to refunded bond escrow agent $ Total Other Financing Sources and (Uses) Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures Source: City financial records and reports Page 148 2013 2011 2010 5,356,364 $ 4,726,150 $ 5,504,462 $ 8,388,300 $ 6,376,290 (10,494,616) (9,602,694) (9,397,127) (10,837,705) (14,191,575) 10,500,000 1,780,000 105,000 129,958 5,733 14,755,000 10,685,000 11,530,000 1,114,908 672,545 949,267 (15,138,166) (10,965,024) (11,530,000) - . 6,015,977 (4,406,510) $ 2012 150,212 22.7% $ 8,019,757 25.8% (1,033,440) $ 6,386,943 28.9% (2,449,405) (7,704,552) $ (2,449,405) $ (6,075,347) 27.3% 27.0% Table 6 Fiscal Year 2009 2008 2007 2006 2005 $ 4,123,384 $ 11,561,671 $ 17,288,179 $ 18,210,420 $ 2,933,372 (11,874,691) (21,005,748) (17,387,710) (47,966,568) (2,299,219) 604,500 112,248,000 16,969,302 5,005,000 42,005,000 5,722 2,300,192 (72,151) 479,593 6,415,000 (3,585,000) (6,734,459) - (10,726,085) 104,784,656 16,797,620 $ (50,418,132) $ 13,388,927 $ 2,262,992 17.5% Page 149 6.2% 12.4% (24,751,148) $ 43,118,746 (55,157) $ 51,285,241 17.9% 18.7% City of Goodyear Property Tax Rates 1 Direct and Overlapping Governments Last Eight Fiscal Years (Unaudited) Overlapping Rates City Direct Rate County-Wide Jurisdictions Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 Debt Operating Service Rate Rate 1.1994 0.7006 1.1115 0.6635 0.9446 0.6554 0.7603 0.6630 0.6320 0.9679 0.6678 0.9322 0.7321 0.8679 0.7945 0.7991 0.8222 0.7778 Total City Rate 1.9000 1.7750 1.6000 1.4233 1.5999 1.6000 1.6000 1.5936 1.6000 County Operating Rate 1.2807 1.2407 1.2407 1.0508 0.9909 1.0327 1.1046 1.1794 1.1971 Note: Data not available prior to 2006 1 Page 150 Source: Maricopa County Assessor's Office County Library Fire District District Assistance Rate Rate 0.0438 0.0121 0.0492 0.0110 0.0492 0.0084 0.0412 0.0066 0.0353 0.0057 0.0353 0.0053 0.0391 0.0053 0.0507 0.0068 0.0521 0.0069 County County Flood Education District Equalization Rate Rate 0.1392 0.5123 0.1780 0.4717 0.1780 0.4259 0.1489 0.3564 0.1367 0.3306 0.1367 0.1533 0.2047 0.2119 0.4358 Table 7 Overlapping Rates County-Wide Jurisdictions Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 Community College Rate 1.5340 1.3778 1.2082 0.9728 0.8844 0.9386 0.9760 1.0646 1.0315 Central Arizona Project Rate 0.1400 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1200 0.1200 Special Health Care District Rate 0.1494 0.1122 0.0914 0.0856 0.0935 0.1184 0.1206 School Districts Total Agua Fria/ County Avondale Litchfield Rate Rate Rate 3.6621 8.2090 3.9772 3.4284 7.4945 3.8863 3.3598 7.4753 3.2590 2.7889 5.3923 5.3658 2.5750 6.0066 5.3164 2.3342 5.7554 4.9382 2.4718 6.4298 5.3545 2.7446 7.8564 6.8558 3.1759 7.8631 6.9430 Buckeye/ Tolleson/ Liberty Littleton Rate Rate 7.1092 11.4641 6.9607 9.2259 6.2698 7.8626 6.1069 6.1935 5.2568 5.8681 5.5581 6.3843 6.7267 6.8078 7.3005 7.3586 7.4944 8.3794 Mobile Rate 7.7572 6.9350 4.9490 5.4994 6.2147 8.3984 N/A N/A N/A continued Page 151 City of Goodyear Property Tax Rates 1 Direct and Overlapping Governments Last Eight Fiscal Years (Unaudited) Overlapping Rates Other Special Taxing Districts Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 Page 152 West Maricopa Education Center District Rate 0.0592 0.0500 0.0500 0.5000 0.0500 0.0500 0.0500 0.0500 0.0500 Central Arizona GRD Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Estrella Centerra Cortina Cottonflower Mtn. Ranch Roosevelt Community Community Community Community Irrigation Facilities Facilities Facilities Facilities District District District District District Rate Rate Rate Rate Rate 17.1000 3.3559 2.8500 3.9890 1.3000 17.1000 3.2961 2.8500 3.8528 1.3000 17.1000 2.1961 2.7298 3.4033 1.3000 17.1000 2.3797 2.2087 2.9776 1.3000 17.1000 2.6829 1.2146 2.1198 1.3000 17.1000 2.6965 0.1520 1.2843 1.3000 15.0000 3.0000 2.8500 1.7639 1.3000 15.0000 3.0000 2.8500 3.0000 1.3000 15.0000 3.0000 2.8500 3.0000 1.3000 Table 7 Overlapping Rates Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 Other Special Taxing Districts Palm King Wildflower Wildflower Goodyear Goodyear Community Community Valley Ranch Community Community Facilities Facilities Community Community Facilities Facilities General Utilities Facilities Facilities General General District #1 District #1 District #3 District District #1 District #2 Rate Rate Rate Rate Rate Rate 1.0000 1.0000 1.7844 0.3000 3.4365 3.8922 1.0000 1.0000 1.8035 0.3000 3.3150 3.3467 0.8034 1.0000 1.2684 0.3000 2.8718 2.9933 0.7570 1.0000 1.2952 0.3000 2.2891 2.5496 0.6629 1.0000 0.2165 0.3000 1.5905 1.6561 0.5313 1.0000 1.7949 0.3000 1.1703 1.3143 0.8040 1.0000 1.6295 0.3000 1.3123 1.4154 1.0000 1.0000 2.0000 0.3000 2.1340 2.3935 1.0000 1.0000 0.3000 2.1893 2.3547 concluded Page 153 Page 154 Table 8 City of Goodyear Principal Property Tax Payers Current Fiscal Year and Nine Years Ago (Unaudited) Fiscal Year 2005 2014 Taxable Assessed Value Taxpayer Arizona Public Service Company $ Percentage of Total Taxable Assessed Rank Value Taxable Assessed Value 21,162,543 1 3.59% $ VHS of South Phoenix, Inc. 8,804,731 2 1.49% First American Title Insurance Company 5,856,271 3 0.99% - Cardinal Capital Co 5,479,527 4 0.93% - Macy's Retail Holdings, Inc. 4,549,039 5 0.77% - Southwest Gas Corporation 4,407,420 6 0.75% - DH Goodyear, LLC 4,407,079 7 0.75% The Market at Estrella Falls, LLC 4,281,840 8 0.73% - NNP III Estrella Mountain Ranch, LLC 3,965,581 9 0.67% - TOO 211 Canyon Trails LLC 3,372,530 10 0.57% - Rank 7,213,544 4 6,845,325 5 5,128,082 6 Percentage of Total Taxable Assessed Value 2.20% 1.57% Sun Chase Estrella LP - 15,914,506 1 4.86% Suncor Development Company - 11,126,565 2 3.40% Rubbermaind, Inc. - 8,893,205 3 2.72% McLane Company - 3,941,499 7 1.20% PVPW Corporation - 3,773,693 8 1.15% Snyders of Hanover - 3,445,821 9 1.05% Qwest Communications - 3,082,120 10 0.94% Total Source: Maricopa County Treasurer Page 155 $ 66,286,561 11.23% $ 69,364,360 21.20% City of Goodyear Assessed Value and Estimated Actual Value of Taxable Property Last Nine Fiscal Years (Unaudited) Total Assessed Value Residential Property Fiscal Year Ended June 30 Total Assessed Value Commercial Property Other Less: Tax-Exempt Property 205,111,305 211,390,271 $161,905,429 165,979,539 $ 273,421 275,521 $ 122,898,455 129,681,549 Net Assessed Value 2014 Primary Secondary $ 340,280,668 342,294,870 2013 Primary Secondary 338,747,451 339,165,652 220,657,668 228,812,312 163,082,414 167,084,029 240,243 244,254 120,560,037 129,664,064 602,167,739 605,642,183 2012 Primary Secondary 357,230,458 357,367,570 238,218,141 252,752,614 194,223,071 206,673,571 226,506 214,401 122,548,914 144,006,328 667,349,262 673,001,828 2011 Primary Secondary 404,164,550 405,850,285 265,580,527 297,842,341 246,048,945 308,078,489 70,064 33,349 126,711,288 163,045,578 789,152,798 848,758,886 2010 Primary Secondary 482,286,104 497,383,109 233,187,882 284,491,038 248,660,120 374,640,069 63,427 28,842 113,281,184 173,686,635 850,916,349 982,856,423 2009 Primary Secondary 434,868,600 586,181,619 179,455,120 211,360,209 191,759,294 323,172,973 62,183 30,053 71,196,812 120,023,805 734,948,385 1,000,721,049 2008 Primary Secondary 464,968,904 159,482,762 221,884,779 30,978 82,130,285 569,933,790 764,237,138 Primary Secondary 259,063,526 131,663,157 164,267,777 47,639 60,129,086 448,211,802 494,913,013 Primary Secondary 219,161,231 109,929,249 97,388,312 226,783 35,549,177 361,667,417 391,156,398 2007 2006 $ Agricultural/ Vacant Land Note: Data prior to 2006 is not available. Detail data prior to 2009 for "primary" is not available. Source: Maricopa County Assessor's Office Under Arizona law, there are two property valuations bases: PRIMARY and SECONDARY. The primary (limited) assessed valuation is used when levying for maintenance and operations. The secondary (full cash) assessed valuation is used when levying for debt retirement. Page 156 $ 584,672,368 590,258,652 Table 9 Estimated Actual Taxable Value Total Direct Tax Rate $ 1.1994 0.7006 5,485,036,603 5,562,951,789 10.7% 10.6% 1.1115 0.6635 5,513,086,956 5,583,052,641 10.9% 10.8% 0.9446 0.6554 5,978,258,706 6,130,095,795 11.2% 11.0% 0.7603 0.6630 6,843,890,271 7,401,814,203 11.5% 11.5% 0.6320 0.9679 7,439,067,045 8,607,745,155 11.4% 11.4% 0.6678 0.9322 6,329,622,800 8,799,999,309 11.6% 11.4% 0.7321 0.8679 6,700,379,823 11.4% 0.7945 0.7991 4,159,221,424 11.9% 0.8222 0.7778 3,254,133,854 12.0% Page 157 $ Assessed Value as Percentage of Actual Value Table 10 City of Goodyear Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Fiscal Year Ended June 30 Taxes Levied for the Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 $ 11,185,149 10,714,099 10,743,752 11,650,452 14,959,898 14,460,290 10,843,797 7,424,246 6,070,318 6,049,416 Collected within the Collection in Fiscal Year of the Levy Percentage Subsequent Amount of Levy Years $ 10,949,615 10,414,268 10,521,745 11,524,990 14,527,751 13,888,743 10,706,881 7,257,013 5,923,200 5,974,482 97.89% 97.20% 97.93% 98.92% 97.11% 96.05% 98.74% 97.75% 97.58% 98.76% $ 176,353 219,335 119,719 422,054 567,064 134,251 166,398 146,088 74,451 Total Collections to Date Percentage Amount of Levy 10,949,615 10,590,621 10,741,080 11,644,709 14,949,805 14,455,807 10,841,132 7,423,411 6,069,288 6,048,933 Note: Data not available for FY2005. All secondary collections are reported as current collections. Delinquent tax collections are shown in the year collected. Source: City Financial Records and Reports Schedule includes General and Debt Service Funds Page 158 97.89% 98.85% 99.98% 99.95% 99.93% 99.97% 99.98% 99.99% 99.98% 99.99% Table 11 City of Goodyear Utility Statistical Data Ten Largest Water Users Current Fiscal Year and Six Fiscal Years Ago (Unaudited) Fiscal Year Entity Canyon Trails 4 - South Canyon Trails HOA Cottonflower Goodyear Community Las Brisas Community Assoc Agua Fria Union High School Dist. Canyon Trails HOA Unit 4 Avondale Elementary School Dist. Sarival Paseo Joint Community Cancer Treatment Center Canyon Trails HOA Unit 3 Evergreen Lawn Sprinklers Centerra, LLC Park Shadows Estrella Vista HOA Type of User Homeowner's Association Homeowner's Association Homeowner's Association Homeowner's Association School Homeowner's Association School Homeowner's Association Hospital Homeowner's Association Homeowner's Association Homeowner's Association Apartments Homeowner's Association Total Total as a percent of total Water System Operating Revenue Note: Water information not available prior to FY 2008 Source: City customer service and billing records Page 159 2014 2008 Fees & Fees & Rank Charges Rank Charges 1 $ 271,111 2 $ 166,139 2 269,397 3 189,669 4 183,968 5 177,269 1 173,266 6 172,476 5 145,474 7 161,255 6 105,348 8 154,686 3 154,195 9 127,419 10 114,454 8 93,896 4 148,800 7 102,443 9 76,401 10 64,527 $ 1,821,703 14.63% $ 1,230,489 13.94% Page 160 Table 12 City of Goodyear Utility Statistical Data Ten Largest Wastewater Users Current Fiscal Year and Six Fiscal Years ago (Unaudited) Fiscal Year Entity Arizona State Prison/Perryville Cancer Treatment Center Fairfield Centerra LLC Fairfield Goodyear LLC Park Shadows HSL Encantada Goodyear LLC Poore Brothers, Inc. Pem Investments Schoeller Arca Systems Inc Airport Training Center Agua Fria Union High School District Wal-Mart Stores Avondale Elementary McLane Sunwest La Jolla Court, Inc. Estrella Joint Committee 2014 2008 Fees & Fees & Type of User Rank Charges Rank Charges Prison 1 $ 554,273 1 $ 317,331 Hospital 2 99,210 Real Estate 3 77,057 Apartments 4 76,627 Apartments 5 73,224 2 50,512 Apartments 6 51,467 Food Manufacturer, Snacks 7 50,764 6 22,656 Apartments 8 50,080 Manufacturer 9 47,441 Airport 10 46,993 5 22,656 Education 3 32,000 Retail 4 24,273 Education 7 21,794 Grocery Distributor 8 19,253 Apartments 9 18,044 HOA - 10 17,581 Total Total as a percent of total Wastewater System Operating Revenue Note: Wastewater information not available prior to FY 2008 Source: City customer service and billing records Page 161 $ 1,127,136 8.96% $ 546,100 8.74% City of Goodyear Schedule of Existing and Adopted Monthly Water & Sewer Service Charges (2011 - 2014) (Unaudited) Description of Water System Services Adopted Adopted Adopted 2011 2012 2013 Existing Fees (1) Base Charge (Meter Size) 3/4 Inch 9.94 $ 10.05 $ 10.23 1 Inch $ 10.23 14.14 $ 11.81 12.74 14.14 1 1/2 Inch 22.86 16.36 19.74 22.86 2 Inches 37.01 26.22 32.02 37.01 3 Inches 70.67 48.43 61.64 70.67 4 Inches 115.24 83.36 99.58 115.24 6 Inches 218.71 159.83 189.08 218.71 Monthly Volume Charge - Residential 0 - 6,000 gallons (per thousand) $ 1.18 (2) $ 1.32 2.36 (3) 2.64 2.92 2.36 12,001 - 30,000 (per thousand) 3.54 (4) 3.96 4.38 3.54 30,001+ gallons (per thousand) 5.69 (5) 5.15 5.69 5.69 6,001 - 12,000 (per thousand) $ 1.46 $ 1.18 Monthly Volume Charge - Commercial 0 - 40,000 gallons (per thousand) $ 3.00 $ 2.30 $ 2.60 $ 3.00 40,001 - 100,000 gallons (per thousand) 4.80 3.68 4.16 4.80 100,001+ gallons (per thousand) 6.24 4.78 5.41 6.24 Note: Rates shown are for customers within city limits. The rates for customers outside of the city limits are 25% greater than the customers within city limits. Rate increases are adopted at the direction of City Council. (1) Rates were updated during January 2013 (2) Monthly volume change for fees is 0 - 6,000 gallons (per thousand). (3) Monthly volume change for fees is 6,001 - 12,000 gallons (per thousand). (4) Monthly volume change for fees is 12,001 - 30,000 gallons (per thousand). (5) Monthly volume change for fees is 30,001 - and over gallons (per thousand). Schedule of Water System Rate Increases (2011-2014) Rate Date Increase Fiscal Year 2011 7.50% Fiscal Year 2012 9.40% Fiscal Year 2013 0.00% Fiscal Year 2014 N/A Source: City of Goodyear Finance Department. The table above reflects only certain basic fees and charges of the City's water system and is not a comprehensive statement of all such fees. Page 162 Table 13 Description of Sewer System Services Existing Fees Adopted Adopted Adopted 2011 2012 2013 Residential Sewer Service Base Charge (See below) Volume Charge (per 1,000 gallons) $ 5.78 $ 4.45 $ 4.90 $ 5.78 General Commercial Sewer Service Base Charge (See below) Volume Charge (per 1,000 gallons) $ 5.78 $ 4.45 $ 4.90 $ 5.78 $ 21.12 $ 17.52 $ 18.96 $ 21.12 Base Charge (Meter Size) 3/4 Inch 1 Inch 32.41 23.70 28.02 32.41 1 1/2 Inch 39.94 29.75 34.61 39.94 2 Inches 77.58 54.57 67.16 77.58 3 Inches 115.22 84.74 99.68 115.22 4 Inches 152.86 130.37 139.10 152.86 6 Inches 378.70 285.03 328.83 378.70 Schedule of Wastewater System Rate Increases (2011-2014) Rate Date Fiscal Year 2011 Page 163 Increase 9.30% Fiscal Year 2012 9.50% Fiscal Year 2013 15.20% Fiscal Year 2014 0.00% (1) City of Goodyear Ratios of Outstanding Debt by Type Last Nine Fiscal Years (Unaudited) Fiscal Year Ended June 30 2014 2013 2012 2011 2010 2009 2008 2007 2006 General Obligation Bonds Contract Payable Governmental Activities Public Greater Improvement Arizona Corporation Development Municipal Authority Facilities Loan Revenue Bond McDowell Road Corridor Improvement District $ 24,616,149 $ - $ - $ 11,047,495 $ 42,383,378 $ 107,194,657 26,555,569 12,431,467 42,390,000 109,823,000 29,000,636 1,755,628 2,940,000 43,675,000 113,555,000 31,358,457 3,755,628 4,510,000 44,900,000 117,182,000 33,601,981 5,755,628 5,230,000 46,060,000 122,313,000 35,842,739 11,755,628 5,910,000 47,165,000 127,125,000 41,719,857 6,415,000 47,165,000 131,116,000 36,050,000 3,185,000 3,320,000 76,844,000 27,280,000 3,645,000 3,485,000 73,000,000 Note: Data prior to 2006 is not available. Source: US Census Bureau, Applied Geographic Solutions/TIGER Geography, and City Financial Records Page 164 Community Facilities District Bonds Table 14 General Obligation Bonds $ Business-Type Activities Public Improvement Corporation Municipal Facilities Revenue Revenue Bond Bonds 82,113,973 $ 104,096,689 $ 85,384,431 102,180,000 89,394,364 102,180,000 91,121,543 102,300,000 92,753,019 102,300,000 88,282,261 102,300,000 88,125,143 67,850,000 54,145,000 28,990,000 - Page 165 Water Infrastructure Finance Authority Loan 30,596,520 $ 31,390,000 31,985,000 32,245,000 17,040,000 2,370,000 2,345,000 2,460,000 2,580,000 Water Rights 10,064,007 $ - $ 10,998,942 11,908,603 12,554,096 9,925,289 10,314,041 8,866,108 11,173,544 9,443,400 9,985,012 10,505,512 - Total 412,112,868 421,153,409 426,394,231 439,926,724 445,292,958 440,790,280 394,179,400 185,989,012 149,485,512 Percentage of Personal Per Income Capita 21.92% $ 5,582 21.26% 5,900 22.40% 6,341 20.74% 6,634 24.79% 6,822 24.89% 7,047 25.65% 6,742 12.34% 3,335 11.74% 3,007 Table 15 City of Goodyear Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) Fiscal Year Ended June 30 General Obligation Bonds 2014 2013 2012 2011 2010 2009 2008 2007 2006 $ 106,730,122 111,940,000 118,395,000 122,480,000 126,355,000 124,125,000 129,845,000 90,195,000 56,270,000 Less: Amounts Available in Debt Service Fund $ 98,876 841,716 1,246,110 668,186 828,016 592,244 3,026,753 587,476 210,498 Total $ 106,631,246 111,098,284 117,148,890 121,811,814 125,526,984 123,532,756 126,818,247 89,607,524 56,059,502 Percentage Estimated Actual Taxable Value of Property 1.92% 1.99% 1.91% 1.65% 1.46% 1.40% 1.89% 2.15% 1.72% Note: Data prior to 2006 is not available. Source: City Records (Does not include Enterprise, Special Assessment and CFD bonds) Page 166 Per Capita $ 1,444 1,556 1,742 1,830 1,933 1,975 2,169 1,607 1,128 Table 16 City of Goodyear Direct and Overlapping Governmental Activities Debt As of June 30, 2014 (Unaudited) Secondary Assessed Valuation Overlapping Jurisdiction Debt Outstanding Estimated Percentage Applicable (a) Maricopa County Maricopa County Community College District Western Maricopa Education Center Liberty Elementary School District No. 25 Avondale Elementary School District No. 44 Littleton Elementary School District No. 65 Litchfield Elementary School District No. 79 Mobile Elementary School District No. 86 Buckeye Union High School District No. 201 Tolleson Union High School District No. 214 Agua Fria Union High School District No. 216 Wildflower Ranch Community Facilities District No. 1 Wildflower Ranch Community Facilities District No. 2 Community Facilities General District No. 1 Community Facilities Utility District No. 1 Estrella Mountain Ranch Community Facilities District Cottonflower Community Facilities District Centerra Community Facilities District Cortina Community Facilities District Palm Valley Community Facilties District Subtotal of overlapping debt: $ 32,229,006,810 $ 32,229,006,810 712,735,000 11,966,668,146 35,000,000 172,916,183 7,845,000 301,317,722 26,995,000 204,194,298 13,485,000 577,493,266 32,750,000 9,351,201 None 640,162,024 46,865,000 862,627,008 54,215,000 878,810,988 54,765,000 3,731,915 820,000 3,746,641 1,025,000 98,240,111 10,685,000 248,308,412 43,705,000 54,414,336 34,757,000 7,105,266 2,375,000 9,612,964 3,160,000 7,669,563 2,190,000 50,336,763 7,195,000 $ 80,554,720,427 $ 1,090,567,000 1.84 % 1.84 4.96 52.99 81.77 0.04 43.76 29.45 14.31 0.01 56.68 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Direct Debt: City of Goodyear (b) $ 100.00 % 590,258,652 $ 105,025,000 (a) Proportion applicable to the City of Goodyear, Arizona is computed on the ratio of secondary assessed valuation for 2013/14. (b) Direct debt includes General Obligation Bonds that are currently being paid by property tax and utility rates. This presentation is consistent with the city's official statements. Sources: Maricopa County Department of Finance, Maricopa County Assessor's Office and Official Statements. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Goodyear. This process recognizes that when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repayhing the debt, of each overlapping government The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the government's boundaries and dividing it by the county's total taxable assessed value. Page 167 Net Debt Amount $ 13,114,324 1,736,000 4,157,066 22,073,812 5,394 14,331,400 None 6,706,382 5,422 31,040,802 880,000 1,025,000 10,685,000 43,705,000 34,757,000 2,375,000 3,160,000 2,190,000 7,195,000 199,142,600 $ 105,025,000 $ City of Goodyear Legal Debt Margin Information Last Nine Fiscal Years (Unaudited) Fiscal Year 2014 2013 2012 2011 $ 590,258,652 $ 605,642,183 $ 673,001,828 $ 848,758,886 20% Limitation Debt Limit Equal to 20% of Assessed Valuation 118,051,730 121,128,437 134,600,366 169,751,777 Total Debt Applicable to 20% Limit 104,775,000 111,690,000 118,130,000 122,205,000 Legal 20% Debt Margin (Available Borrowing Capacity) $ 13,276,730 9,438,437 $ 16,470,366 $ 47,546,777 Secondary Assessed Value Total net debt applicable to the limit as a percentage of debt limit 6% Limitation Debt Limit Equal to 6% of Assessed Valuation 88.75% $ 92.21% 87.76% 71.99% $ 35,415,519 $ 36,338,531 $ 40,380,110 $ 50,925,533 Total Debt Applicable to 6% Limit 250,000 250,000 265,000 275,000 Legal 6% Debt Margin (Available Borrowing Capacity) $ 35,165,519 $ 36,088,531 $ 40,115,110 $ 50,650,533 Total net debt applicable to the limit as a percentage of debt limit Note: Data prior to 2006 is not available. Sources: Maricopa County Treasurer's Office City financial records and reports Page 168 0.71% 0.69% 0.66% 0.54% Table 17 Fiscal Year 2010 $ $ 2009 2008 2007 2006 982,856,423 $ 1,000,721,049 $ 764,237,138 $ 494,913,013 $ 391,377,371 196,571,285 200,144,210 152,847,428 98,982,603 78,275,474 126,070,000 123,830,000 129,540,000 90,195,000 47,795,000 76,314,210 $ 23,307,428 8,787,603 $ 30,480,474 70,501,285 $ 64.13% $ 58,971,385 61.87% $ 285,000 $ 58,686,385 0.48% Page 169 $ 84.75% $ 91.12% 61.06% 60,043,263 $ 45,854,228 $ 29,694,781 $ 23,482,642 295,000 305,000 - 8,475,000 59,748,263 $ 45,549,228 $ 29,694,781 $ 15,007,642 0.49% 0.67% 0.00% 36.09% Table 18 City of Goodyear Pledged-Revenue Coverage Last Nine Fiscal Years (Unaudited) Public Improvement Corporation Municipal Facilities Revenue Bonds* Fiscal Year Ended June 30 2014 2013 2012 2011 2010 2009 2008 Operating Revenue $ 81,109,035 76,004,072 65,501,422 57,697,609 57,363,961 62,281,214 85,680,828 Debt Service Principal Interest Pledged Revenue $ 62,556,655 57,756,502 52,355,875 45,594,775 45,810,806 49,324,646 56,440,267 $ 1,002,289 1,484,090 570,000 745,000 720,000 680,000 505,000 $ Coverage 5,956,692 5,711,236 4,925,626 5,562,612 5,594,412 4,907,984 2,019,691 8.99 8.03 9.53 7.23 7.25 8.83 22.36 Water & Sewer Bonds & Loans Fiscal Year Ended June 30 2014 2013 2012 2011 2010 2009 2008 2007 2006 Note: Less: Operating Expenses Operating Revenue $ 24,989,997 23,133,152 20,221,750 18,271,778 16,378,677 15,300,056 15,151,775 13,760,462 10,816,571 $ 12,684,374 10,837,296 8,703,445 8,965,363 8,350,588 9,733,836 11,424,111 11,008,102 9,629,632 $ 12,305,623 12,295,856 11,518,305 9,306,415 8,028,089 5,566,220 3,727,664 2,752,360 1,186,939 Debt Service Principal Interest $ 1,439,935 1,504,661 1,139,026 1,167,815 1,195,691 877,292 656,612 640,500 502,118 $ Coverage 2,212,948 5,819,924 5,554,656 1,802,534 543,662 540,523 474,992 506,104 516,469 *Public Improvement Corporation Municipal Facilities Revenue Bonds did not exist prior to 2008. The PIC 2007 Bonds were issued during FY2008. Data for Water & Sewer Bonds & Loans prior to 2006 is not available. Source: City Financial Records and Reports Page 170 Net Operating Revenue 3.37 1.68 1.72 3.13 4.62 3.93 3.29 2.40 1.17 Table 19 City of Goodyear Demographic and Economic Statistics Last Nine Fiscal Years (Unaudited) Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 Population 73,832 71,381 67,239 66,309 65,275 62,554 58,462 55,775 49,714 Personal Income (in thousands) $ 1,879,673 1,980,537 1,903,133 2,120,960 1,796,433 1,771,217 1,536,966 1,507,375 1,274,269 Per Capita Personal Income $ 25,459 27,746 28,304 31,986 27,521 28,315 26,290 27,026 25,632 Median Age 36.5 38.4 35.2 33.5 35.5 39.1 36.1 36.3 35.7 Education Level in Years of Schooling 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 Unemployment Rate 7.2% 8.3% 8.2% 9.8% 7.1% 6.9% 3.6% 2.1% 2.7% Note: Data prior to 2006 is not available. Source: US Census Bureau, Applied Geographic Solutions/TIGER Geography, and City Financial Records Page 171 Table 20 City of Goodyear Principal Employers1 Current Fiscal Year and Nine Fiscal Years Ago (Unaudited) Major Corporation Fiscal Year 2014 Percentage of Total City Employees Rank Employment* Fiscal Year 2005 Percentage of Total City Employees Rank Employment* Arizona State Prison/Perryville 825 1 2.61% 825 1 West Valley Hospital 750 2 2.37% - 0.00% Cancer Treatment Centers of America 650 3 2.06% - 0.00% Macy's 600 4 1.90% - 0.00% City of Goodyear 511 5 1.62% 410 Amazon.com 500 6 1.58% - 0.00% Sub-Zero / Wolf 428 7 1.35% - 0.00% McLane Sunwest 360 8 1.14% 500 Aeroturbine 300 9 0.95% Lockheed Martin 250 10 0.79% 6 3 3.07% 1.52% 1.86% 0.00% 732 2 2.72% Cavco Industries, Inc. 475 4 1.77% Newell Rubbermaid, Inc. 261 7 0.97% Timco Aviation Services 430 5 1.60% Rudolfo Brothers 260 8 0.97% Target 175 9 0.65% Lufthansa-German Airlines 170 10 0.63% Total 1 5,174 Source: City Records *2014 labor force = 31,617 ; 2005 labor force = 26,909 Page 172 16.36% 4,238 15.75% Table 21 City of Goodyear Full-time Equivalent City Government Employees by Function Last Nine Fiscal Years (Unaudited) 2014 General Government Financial Services Information Services Police Officers Civilians Planning and Development Fire Firefighters and Officers Civilians Human Resources Community Services Economic Development Municipal Services Public Works Water Wastewater Sanitation Total 2012 2011 2010 2009 2008 2007 2006 55 27 15 55 29 14 52 28 14 52 30 13 53 30 13 47 30 15 52 28 12 52 27 11 41 21 9 91 29 23 94 30 25 94 27 9 94 29 9 97 29 10 97 30 16 89 26 38 72 24 32 72 18 21 91 8 10 0 4 10 75 24 20 5 90 7 10 0 4 13 73 23 17 5 91 20 9 0 6 13 65 21 18 7 87 24 7 0 7 8 78 22 17 9 90 22 8 0 7 10 79 23 18 9 91 22 10 0 4 14 87 24 19 9 93 17 10 11 5 14 64 30 18 12 70 12 9 12 3 11 52 30 14 13 65 12 9 8 3 9 49 30 14 10 487 489 474 486 498 515 519 444 391 Note: Data prior to 2006 is not available. Source: City Financial Records and Reports Page 173 2013 City of Goodyear Operating Indicators by Function Last Eight Fiscal Years (Unaudited) Function General Government City Clerk's Office # of records requests City Prosecutor's Office Charges filed/charges adjudicated (resolved) City Manager's Office % of survey respondents rating "Your Neighborhood as a Place to Live" as good to excellent Communications & Public Information News releases/media updates Total newsletter pages sent to citizens Number of visits to website Number of web pages viewed Number of graphics/photography projects completed Police # of total arrests # of moving violations citations Fire # of emergency responses # of fires extinguished # of inspections Financial Services # accounts payable checks issued # purchase orders # water meters read annually Planning and Development Customer wait-time (in minutes) at One Stop Shop Total number of permits issued Provide applicant with pre-application meeting within 30 days of submitting request % of inspections performed within 24 hours of request Human Resources # of new hires (FT & PT) HR budgeted operating cost as a % of City budgeted payroll Parks and Recreation # attending Park & Recreation facilities and Libraries annually # of square feet of medians and rights of way maintained * Page 174 Fiscal Year 2013 2012 2014 504 470 484 3,170 2,514 3,827 95% 94% 94% 76 114 491,540 1,850,471 275 59 112 804,542 2,185,489 254 49 136 771,938 2,203,995 262 2,612 10,586 2,532 10,259 2,402 11,468 8,298 242 752 5,604 243 969 7,195 271 212 6,403 1,091 191,189 6,298 1,238 184,638 6,132 1,229 178,466 <1 3,580 <1 3,529 <1 3,576 1 1 1 1 1 0.7 180 4.85% 178 5.01% 118 4.86% 74,527 23,151,438 69,596 23,151,438 63,256 23,151,438 Table 22 Fiscal Year 2009 2008 2010 2011 2007 2006 550 504 613 648 576 180 3,380 3,395 2,494 2,469 3,653 2,692 90% 90% 94% 94% 94% 91% 150 144 703,174 2,104,553 230 235 176 715,285 2,208,180 217 161 186 738,949 2,346,423 200 182 136 1,509,717 7,203,478 200 129 116 1,322,259 4,865,081 175 92 42 840,757 5,318,311 140 2,254 12,581 4,731 11,810 2,829 13,313 2,614 11,452 2,814 12,422 2,603 12,175 6,597 235 3,229 5,570 226 4,262 5,328 270 3,953 3,431 143 3,427 3,236 154 2,403 1,960 150 759 6,413 1,344 170,657 8,024 1,147 168,647 10,184 918 163,444 9,949 1,043 155,805 9,305 1,002 147,241 9,014 1,067 125,382 <3 3,269 <3 4,232 <5 3,401 <5 5,874 <5 1,340 <5 7,859 1 1 1 1 1 1 1 1 1 1 1 1 125 4.11% 247 4.18% 158 4.11% 179 4.36% 54,428 22,696,736 Page 175 52,241 22,175,027 51,844 22,118,000 49,111 15,320,000 164 5.50% 50,093 15,320,000 174 5.26% 46,330 15,320,000 City of Goodyear Operating Indicators by Function Last Eight Fiscal Years (Unaudited) Function Economic Vitality Sales Tax growth (% annual change) Bed Tax growth (% annual change) Municipal Services # of homes serviced by Residential Refuse Collection # of citizens serviced by Household Hazardous Waste collection program Fiscal Year 2013 2012 2014 8.76% -4.12% 11.29% 1.41% 10.45% 14.15% 24,346 23,387 22,363 550 546 503 Water Service # of residential customers # of multifamily customers # of commercial customers Water Service Connections Drinking Water Supplied (million gallons per day) Reclaimed Water Supplied (million gallons per day) 14,959 35 1,025 17,533 11.70 0.32 14,430 36 999 17,533 9.60 0.39 13,755 36 976 16,809 11.60 0.32 Wastewater # of residential customers # of multifamily customers # of commercial customers Sewer Service Connections Sewage Treated (millions gallons per day) 14,877 36 370 16,918 4.20 14,231 38 382 16,918 4.15 13,599 36 364 16,856 3.82 Other Public Works Street resurfacing (miles) Potholes repaired 19.20 1,166 30.00 296 24.00 264 Citizen & Neighborhood Resources # of new Code Enforcement cases processed per year 3,018 2,841 2,069 Note: Data prior to 2006 is not available. *Change in value is not available for fiscal years 2007 & 2008 Source: City Financial Records and Reports Page 176 Table 22 2010 Fiscal Year 2009 2008 4.42% -7.31% -10.40% -3.90% -12.30% -15.00% -10.25% 6.00% 20.71% 6.98% 70.19% 22.81% 21,489 20,928 20,149 19,811 18,664 17,228 510 531 2011 729 848 0 2007 634 2006 13,319 36 963 14,588 11.40 0.37 13,051 36 742 14,488 11.10 0.23 12,394 36 781 13,975 11.00 0.45 12,214 36 709 13,500 10.80 0.27 11,811 9 571 13,051 6.86 0.09 10,699 9 480 11,597 6.86 0.09 13,298 36 363 16,743 3.73 12,962 36 372 16,144 3.73 12,322 36 370 16,144 3.70 9,445 38 307 13,500 3.24 7,865 36 234 11,398 2.48 6,481 7 191 5,037 2.48 12.50 260 372 4.00 681 783 34.20 1,096 33.00 977 2,016 2,255 2,155 2,698 2,755 2,092 Page 177 Table 23 City of Goodyear Capital Asset Statistics by Function Last Eight Fiscal Years (Unaudited) Function Public Safety Police: Stations Police Vehicles Fire Stations Highways and Streets Street (miles) Streetlights Traffic signals Culture and Recreation Parks Parks Acreage Swimming Pools Tennis Courts Community Centers Water Water Mains (miles) Fire Hydrants Storage capacity (thousands of gallons) Wastewater Sanitary Sewers (miles) Storm Sewers (miles) Treatment capacity (MGD) (thousands of gallons) Note: Data prior to 2006 is not available. Source: City Financial Records and Reports Page 178 2014 2013 2012 2011 Fiscal Year 2010 2009 2008 2007 2006 3 119 6 3 126 6 3 125 6 3 130 6 3 124 6 3 130 6 3 125 6 3 146 4 1 107 4 934 8,832 92 934 8,660 84 934 8,465 77 704 8,438 72 704 8,329 72 563 7,969 67 450 7,391 56 360 7,391 37 360 7,391 30 17 204 1 6 1 17 204 1 6 1 17 204 1 6 1 17 204 1 6 1 17 204 1 6 1 16 184 1 6 1 16 156 1 6 1 12 117 1 6 1 11 82 1 2 1 308 2,808 16 308 2,796 16 308 2,791 16 308 2,791 16 308 2,791 16 307 2,754 16 286 2,481 15 257 2,370 11 173 2,053 12 239 63 5.6 229 57 5.6 227 57 5.6 229 57 5.6 223 54 5.6 225 58 5.6 236 80 5.5 152 105 4.6 167 105 11.6