City of Yuma, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2008 City of Yuma Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2008 Prepared by: CITY COUNCIL Lawrence K. Nelson, Mayor Cody Beeson Ross J. Hieb Paul B. Johnson Leslie L. McClendon Raul Mendoza Ema Lea Shoop City Administration Mark S. Watson City Administrator Robert L. Stull Deputy City Administrator Gary R. Burroughs Deputy City Administrator City Departments City Attorney Steven W. Moore Finance Department City Clerk Brigitta M. Kuiper Donald (Pat) Wicks, CPA Community Development Laurie L. Lineberry Director Wendy Wrenn, CPA Accounting Supervisor Sharon Willoughby Budget Coordinator Tahir Alhassan Minda Federmeyer Linda Johnson Accountants Finance Donald (Pat) Wicks Fire Department Jack McArthur, Chief Information Technology Laura S. Neinast Municipal Court Douglas S. Stanley, Judge About the Cover: The sun sets behind Gateway Park on the Colorado River in Yuma. The picture frames a portion of the new hotel and conference center under construction on the Yuma Riverfront and shows the complex's proximity to Yuma Crossing State Park in the background. Completion of the complex is expected next year with additional commercial and residential development to follow. Photo - © 2008 City of Yuma, Communications and Public Affairs Parks and Recreation Rebecca J. Chavez Police Department William D. (Robby) Robinson, Chief Public Works Gary R. Burroughs CITIZENS OF YUMA MAYOR and COUNCIL City of Yuma MUNICIPAL COURT CITY ADMINISTRATOR CITY ATTORNEY CITY ADMINISTRATION PARKS & RECREATION General Counsel Administration Parks/Mall Maintenance Litigation Public Affairs Recreation Prosecution Strategic Communications Parks Development Heritage Area Civic Center Baseball Complex HUMAN RESOURCES City Clerk Human Resources Economic Development Risk Management Facilities Maintenance Golf Courses COMMUNITY DEVELOPMENT POLICE DEPARTMENT Administration Field Services Building Safety Support Services Arts and Culture FINANCE Administration and Budget Accounting Customer Service Community Planning Purchasing PUBLIC WORKS INFORMATION TECHNOLOGY SERVICES Business Application And Support Fleet Services FIRE DEPARTMENT Professional Services Streets/Solid Waste Suppression Telecommunications And Support Community Risk Reduction UTILITIES Emergency Medical Services Utility Treatment Special Operations Utility Systems Emergency Management ENGINEERING Engineering/Capital Improvement Projects 6 City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2008 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal from the Finance Director Certificate of Achievement for Excellence in Financial Reporting FINANCIAL SECTION Independent Auditors' Report Management's Discussion and Analysis (Required Supplementary Information) BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Assets Statement of Activities FUND FINANCIAL STATEMENTS Governmental Funds: Balance Sheet Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds to the Statement of Activities Proprietary Funds: Statement of Net Assets Statement of Revenues, Expenses and Changes in Fund Net Assets Statement of Cash Flows NOTES TO THE FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress - Public Safety Personnel Retirement System Budgetary Comparison Schedules-General Fund and Major Special Revenue Funds: General Fund Highway User Revenue Fund City Road Tax Fund Grants Fund Community Redevelopment Fund NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OTHER SUPPLEMENTARY INFORMATION Combining Balance Sheet-Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances-Nonmajor Governmental Funds Budgetary Comparison Schedules: Major Governmental Funds Not Included In Required Supplementary Information Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Local Transportation Assistance Special Revenue Fund Public Safety Tax Special Revenue Fund Solid Waste Special Revenue Fund Recreation Complex Special Revenue Fund Two Percent Tax Special Revenue Fund Yuma Mall Maintenance Special Revenue Fund i Page v x 3 5 18 19 22 24 26 28 29 30 31 33 54 55 58 59 60 61 62 66 68 70 71 72 73 74 75 76 77 City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2008 TABLE OF CONTENTS (Concluded) FINANCIAL SECTION (Concluded) Nonmajor Proprietary Funds: Enterprise Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows Budgetary Comparison Schedules: Water Enterprise Fund Wastewater Enterprise Fund Desert Hills Golf Course Enterprise Fund Arroyo Dunes Golf Course Enterprise Fund Internal Service Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows Budgetary Comparison Schedule - Equipment Replacement Internal Service Fund Budgetary Comparison Schedule - Equipment Maintenance Internal Service Fund Budgetary Comparison Schedule - Insurance Reserve Internal Service Fund Page 80 81 82 83 84 85 86 88 89 90 91 92 93 STATISTICAL SECTION Net Assets by Component - Last Seven Fiscal Years Changes in Net Assets - Last Seven Fiscal Years Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years Governmental Funds Intergovernmental Shared Revenues - Last Ten Fiscal Years Intergovernmental Revenues - Grants and Other - Last Ten Fiscal Years Taxable Sales by Category - Last Ten Fiscal Years Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years Ratio of Outstanding Debt by Type - Last Six Fiscal Years Ratio of General Bonded Debt to Assessed Value and General Bonded Debt per Capita - Last Ten Fiscal Years Computation of Direct and Overlapping Debt Legal Debt Margin Information Schedule of Municipal Property Corporation Debt Service Requirements to Maturity and Coverage Pledged Tax Collections Demographic and Economic Statistics - Last Ten Calendar Years Principal Employers Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years Operating Indicators by Function - Last Ten Fiscal Years Capital Asset Statistics by Function - Last Ten Fiscal Years ii 98 99 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 INTRODUCTORY SECTION iii iv FINANCE DEPARTMENT One City Plaza P.O. Box 13012 Yuma, Arizona 85366-3012 (928) 373-5087 Fax: (928) 373-5084 City of YUMA September 4, 2008 To the Citizens, Honorable Mayor and City Council, and City Administrator The Finance Department is pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Yuma, Arizona for the fiscal year ended June 30, 2008. The report includes the independent auditors’ report as required by City Charter Article XIII, Section 12, and by Arizona Revised Statutes, Section 9-481. The report is prepared in conformity with generally accepted accounting principles and standards set forth by the Governmental Accounting Standards Board (GASB). Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including disclosures, rests with the City. Management of the City is responsible for establishing and maintaining internal controls to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles as they apply to governmental units. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and, 2) the calculation of costs and benefits requires estimates and judgments by management. To the best of our knowledge and belief, the enclosed data is accurate, in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. Heinfeld, Meech & Co., P.C., a public accounting firm fully licensed and qualified to perform audits of local governments within the State of Arizona, have audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Yuma, Arizona for the fiscal year ended June 30, 2008, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that the City of Yuma’s financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with accounting principles generally accepted in the United States. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of Federal awards. These reports are available in the City’s separately issued Single Audit Reporting Package. v This report has been prepared using the financial reporting requirements as outlined in GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. This standard requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditors’ report. PROFILE OF THE CITY OF YUMA The City of Yuma was incorporated in 1914 and adopted its first charter in June of that year. Yuma is the economic hub and county seat of Yuma County. The City is located along the Colorado River in southwestern Arizona and is equidistant from the major population centers of Phoenix, Arizona and San Diego, California. The City operates under a council-manager form of government. The City Council consists of six members elected at large for staggered four-year terms. The elected Mayor is the seventh voting member of council, who, along with the remaining council members is elected on a non-partisan basis. The City Council is responsible for passing ordinances, adopting the budget, appointing members of commissions and hiring the City Administrator. The City Administrator carries out the policies and ordinances of the City Council, oversees the day-to-day operations of the City and appoints the various department heads. The City provides a full range of municipal services. These include public safety (police, fire and municipal court), street construction and maintenance, water and wastewater utility services, sanitation and residential refuse collection, parks, recreation and culture, planning and zoning, and general administrative and support services. This CAFR includes the financial activity of the primary government, which includes several enterprise activities, as well as its blended component units. Component units are legally separate units for which the primary government is financially accountable. Blended component units, while legally separate, are part of the City’s operations and are combined within the report. The Yuma Municipal Property Corporation and the City of Yuma Employee Benefits Trust have been included in the reporting entity. Conversely, the report does not include the City of Yuma Housing Authority as the City is not financially accountable for the authority, nor does the City directly or indirectly rely upon or benefit from the financial activity of the authority. ECONOMIC CONDITION AND OUTLOOK Industrial Expansion. Yuma’s economy is based primarily in agriculture, tourism and government, although further diversification continues. Agriculture remains the Yuma area’s dominant industry, producing almost $1 1 billion in revenues annually . Several major agricultural companies, most notably Dole Food Company, maintain operations here. Their chief consumer products are packaged produce and salad mixes, popular products for today’s convenience-minded customers. The Yuma area’s stable allocation of Colorado River water will assure that agriculture remains the foundation of Yuma’s economy. The United States Marine Corps Air Station and United States Army Yuma Proving Ground help provide economic stability. These two installations are cornerstones in the military’s flight training and equipment testing programs and should survive any continued base closure efforts by the federal government. In fact, both installations are enjoying new construction and expansion to meet their needs into the 21st century. The importance of these two bases to the military establishment has been magnified by the conflict in Iraq and the continued fight against terrorism. Although manufacturing currently accounts for less than 10% of countywide employment, the City’s partnership with the Greater Yuma Economic Development Council continues to attract attention to the area. Several companies have located or expanded operations in Yuma in recent years. 1 Source: Yuma County Chamber of Commerce vi Economic Growth. Yuma’s most reliable indicator of the condition of its economy is sales tax. The graph below reflects the last ten years of data. Even with the slight decline in 2008, collections continue to average better than 7% increase annually. Planning for fiscal year 2009 anticipates another 5% growth in sales tax collections. Tourism. Yuma has enjoyed an influx of seasonal residents for decades. Visitors from throughout the United States and Canada continue to call Yuma their winter home. This contributes to the strengthening of sales tax collections. Millions Yuma’s basis as a regional retail and services center expanded during 2008 with the continued expansion of retail outlets adjoining the Yuma Palms Regional Shopping Center. In addition, several hundred hotel rooms were added to the area’s inventory 25 during the year. 20 General Sales Tax 15 10 5 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year Ending June 30, LONG-TERM FINANCIAL PLANNING Yuma Crossing National Heritage Area. Plans to restore, preserve and interpret the Yuma Crossing National Heritage area began more than thirty years ago. A study at the time aimed at gaining full economic and recreational benefit from the Colorado River for the Yuma area. The river, once the primary reason for Yuma’s existence, was ignored for years as community growth and new development moved away from the riverfront. Awareness of the river’s importance has re-emerged, culminating in the establishment of the Yuma Crossing National Heritage Area in 2000, the first such National Heritage Area west of the Mississippi River. During fiscal year 2008, work on the East Wetlands portion of the plan continued to restore natural vegetation and wildlife habitat. With continued diligence, the City is determined to continue development of historic and cultural activities so important in meeting the Council’s goals in enriching the area’s cultural attributes. Progress in providing opportunities for local residents and in attracting employers to the area to diversify the economy is dependent on continuing these plans. Downtown redevelopment. Revitalization of the downtown area is a vital component of management of the Heritage Area. Construction continued in earnest on the new hotel and conference center which are cornerstones of the public/private partnership that is developing the river area. The new Gateway park, with its improved access to the river area with new parking, restroom facilities and picnic and play facilities, is another piece of this development plan. East Mesa Development. Construction of the new East Mesa Water and Wastewater Treatment plants continued during 2008. The eastern edge of the City on the Yuma Mesa continues to grow. These two plants will not only establish the infrastructure necessary to accommodate that growth, but will improve capacity of existing plants in the older Yuma area to accommodate that dramatic growth. New municipal property corporation bonds were sold during the year to provide additional financing to increase the capacity of the water plant. Rate structures for both the Water Fund and the Wastewater Fund have already been passed and put in place by the City Council to assure adequate funding for the project’s debt service. vii FINANCIAL INFORMATION Budgetary Controls. The annual budget serves as the foundation for City financial planning and control. The City maintains budgetary controls with the objectives to ensure compliance with legal provisions embodied in the annual appropriated budget, approved by the City Council. Activities of the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Fund, Enterprise Funds, and three of the City’s Internal Service Funds are included in the annual appropriated budget. As with the governmental funds, the City’s proprietary funds are presented on a current financial resources basis to account for capital and debt-related expenditures. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary controls. Encumbered amounts lapse at year-end. However, encumbrances generally are re-appropriated as part of the following year’s budget. As demonstrated by the budgetary schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. In addition to budgetary schedules, Note I-D in the Notes to the Financial Statements beginning on page 35 describes in detail the budget process used by the City. Cash Management. The policy of the City of Yuma is to invest funds in a manner which will provide the maximum security of principal invested, provide the highest yield while conforming to applicable State statutes and City ordinances, and meet the daily cash flow needs of the City. Investments authorized by the City’s Investment Policy include: 1) Obligations of the U.S. Government; 2) Fully insured or collateralized certificates of deposits; 3) Bankers acceptances issued by the ten largest domestic banks and the twenty largest international banks; 4) Commercial paper rated A-1/P-1; 5) Repurchase agreements whose underlying collateral consists of the foregoing, provided a signed PSA Master Repurchase Agreement is on file with the counterpart bank or broker/dealer; 6) Money Market Funds whose portfolio consists of the foregoing; and, 7) the State of Arizona Local Government Investment Pool. Total investments increased to $214,740,647 at June 30, 2008 from $84,840,562 last year. This increase reflects unspent proceeds from the City’s November 2007 bond sale. Following market conditions, average yield on investments dropped at June 30, 2008, to 2.94%. A review of Note II-A in the Notes to the Financial Statements, beginning on page 39, will provide a more complete review of investment policy and balances. Risk Management. The City is self insured for certain risks up to a maximum of $300,000 per occurrence. Primary insurance is then available for the next $10,000,000 per occurrence with a $10,000,000 annual aggregate loss. An excess policy follows to cover losses in excess of $5,000,000 per occurrence with a $5,000,000 aggregate. The City self funds for workman’s compensation up to $500,000 per occurrence per year with a $1,000,000 lifetime maximum loss per occurrence. The City participates, with other entities, in a local area self funded consortium for employee health, life and dental insurance. Coverage in excess of self-funded stop loss amounts is also provided through the purchase of commercial insurance. The City pursues an aggressive safety program providing a wide range of training opportunities for employees in promoting safety, managing materials, defensive driving and many other issues. This program helps to mitigate claims costs and reduce exposure. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended June 30, 2007. This is the twenty-sixth consecutive year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report. The report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another award. I wish to express my sincere thanks to the employees of the Accounting Division for their dedicated service in preparing this report. Their work, along with those services provided by other members of the Finance Department, has made this report possible. The cooperation and assistance of the accounting firm of Heinfeld, viii Meech & Co., P.C., also contributed significantly to its production. Finally, I wish to thank the Mayor and Council, City Administrator, and the City Staff for their continued support. Respectfully submitted, Donald (Pat) Wicks, CPA Finance Director ix Certificate of Achievement for Excellence in Financial Reporting Presented to City of Yuma Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association for the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. x FINANCIAL SECTION 1 2 HEINFELD, MEECH & CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS 3033 N.Central Avenue, Suite 300 Phoenix, Arizona 8m12 El (602)277-9449 Fru~(602) 277-9297 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Y m a , Arizona We have audited the accompanying financial statements of the governmefltal activities, the business-type activities, each major fund (General Fund, Highway User Revenues Fund, City Road Tax Fund, Grants Fund, Community Redevelopment Fund., Debt Service Fund, Capital Projets Fund, Water Fund, Wastewater Fund), and the aggregate remaining fund information of the City of Yuma, Arizona (the City) as of and for the year ended June 30, 2Q08, which collect.lvdy comprise the City's basic hancial statements, as listed in the table of contents. These financial statements are the responsibility of the City's management. 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 applicabk to financial audits contained in Government Auditing Sfandarc&, issued by the ComptroUer General of the United States. Those standards require that we- plan and perfom the audit to obtain reasonable assurance about whether the f'mancial statements are fke of material misstatement. An audit includes examining, on a test basis, evidence supporhg the amounts and disclosures in the finan~ialstatements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the b c i a l statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund as listed above, and the aggregate remaining fimd information of the City of Yurna, Arizona as of June 30, 2008, and the respective changes in k c i d position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Goverment Auditkg Standurds, we have also issued our report dated September 4, 2008, on our consideration of City of Yuma, Arizona's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cordracts 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 mntrol over f w c i a l reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing fiandards and should be considered in assessing the results of our audit. TUCSON PHOENIX FLAGSTAFF The management's discussion and analysis on pages 5 to 14 and the pension and budgetary comparison inforrnation on pages 54 to 62 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary inforrnation. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic hancial statements. The accompanying supplementary information such as the introductory section, other supplementary information and the statistical section as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in ail material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. HEINFELD, MEECH & CO.,P.C. Ceftified Public Accountants September 4,2008 4 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) As management of the City of Yuma, we offer readers of the City of Yuma's financial statements this narrative overview and analysis of the financial activities of the City of Yuma for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal in the introductory section of this report. FINANCIAL HIGHLIGHTS • On a government-wide basis, the City’s net assets grew by $29.5 million for the fiscal year, $15.9 million of which was generated by governmental activities while $13.6 million was due to business-type activities of the City. • The City’s combined net assets total $408.0 million at June 30, 2008. Of this amount, $69.4 million is available (unrestricted) to finance ongoing programs, $45.3 million in governmental programs and $24.1 million in business activities. • The Yuma Municipal Property Corporation issued bonds for a combined $219.8 million during 2007. The bonds are financing continued infrastructure improvements of $91.8 million in governmental activities and $127.9 in business-type activities. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Yuma's basic financial statements. The City of Yuma's basic financial statements comprise three components: 1) government-wide 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. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Yuma's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (uncollected taxes and earned but unused vacation leave are two examples). Both of the government-wide financial statements distinguish functions of the City of Yuma that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets, environmental health and protection, community design and development and parks, recreation and culture. The business-type activities of the City include water, wastewater and golf course operations. The government-wide financial statements can be found on pages 18-19 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 of Yuma, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. 5 MANAGEMENT’S DISCUSSION AND ANALYSIS Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and 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. Moreover, these latter statements provide a ready comparison to similar financial statements produced prior to the City’s implementation of GASB Statement No. 34. The City maintains thirteen 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 seven funds considered to be major funds. Data from the other six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements beginning on page 66. Major Governmental Funds: General Highway User Revenue City Road Tax Grants Community Redevelopment Debt Service Capital Projects Nonmajor Governmental Funds: Local Transportation Assistance Public Safety Tax Solid Waste Recreation Complex Two Percent Tax Yuma Mall Maintenance The City adopts annual appropriated budgets for all of its governmental funds. Budgetary comparison statements have been provided to demonstrate compliance with these budgets. The basic governmental fund financial statements can be found starting on page 22 of this report. Proprietary funds. The City of Yuma maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Yuma uses enterprise funds to account for its Water and Sewer Authority and for its golf courses. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City of Yuma uses internal service funds to account for its equipment replacement and maintenance programs, liability insurance, and for its workers compensation and employee health insurance. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Major Enterprise Funds: Water Fund Wastewater Fund Nonmajor Enterprise Funds: Desert Hills Golf Course Arroyo Dunes Golf Course Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements group major and nonmajor proprietary funds in a manner similar to governmental fund statements. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements, beginning on page 88. The City adopts annual appropriated budgets for all of its proprietary funds with the exception of two internal service funds: Employee Benefits Trust and Workers Compensation. Budgetary comparison statements for the remaining proprietary funds are included within the report to demonstrate compliance with these budgets. The basic proprietary fund financial statements can be found on pages 29-31 of this report. 6 MANAGEMENT’S DISCUSSION AND ANALYSIS Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 33 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 of Yuma's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found starting on page 54 of this report. The combining statements referred to earlier in connection with nonmajor governmental, proprietary and internal service funds are presented immediately following the required supplementary information on pensions and budgets. Combining and individual fund statements and schedules can be found starting on page 66. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Yuma, assets exceeded liabilities by $408.0 million at the close of the fiscal year. Governmental Activities Business-type Activities June 30, Net Assets 2008 (millions) Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 160.6 265.9 2007 $ 95.7 227.8 2008 $ 81.8 322.3 Total 2007 $ 18.3 245.6 2008 $ 242.4 588.2 2007 $ 114.0 473.4 426.5 323.5 404.1 263.9 830.6 587.4 156.9 36.9 67.6 39.0 218.4 10.4 91.5 10.8 375.3 47.3 159.1 49.8 193.8 106.6 228.8 102.3 422.6 208.9 169.4 18.0 45.3 232.7 160.2 13.1 43.6 216.9 151.0 0.2 24.1 175.3 154.0 7.6 161.6 320.4 18.2 69.4 408.0 314.2 13.1 51.2 378.5 The largest portion of the City of Yuma's net assets reflects its investment in capital assets (e.g., land, buildings, machinery), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to pay these liabilities. The remaining balance of unrestricted net assets may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, including the City as a whole, as well as for its separate governmental and business-type activities. The same held true for the previous fiscal year. Net assets rose to $408.0 million, up $29.5 million from the prior year. Governmental activities accounted for $15.9 million of the increase while business-type activities amounted to $13.6 million. Most of the increase would be attributable to capital asset acquisitions, particularly infrastructure, as governmental capital assets increased $38.1 million (net of depreciation), funded in part by the excess of revenues over operating expenses as reported in the Statement of Activities on page 19. These acquisitions are reflected in the portion of net assets shown above as ‘Invested in capital assets, net of related debt.’ Unrestricted net assets are those assets available to finance programs in the upcoming fiscal year and would increase when the portion of taxes and other revenues exceed operating expenses but are not invested in capital assets. 7 MANAGEMENT’S DISCUSSION AND ANALYSIS Statement of Activities. Already noted was the statement of activities’ purpose in presenting information in how the government's net assets changed during the most recent fiscal year. A chart of changes in net assets follows. Changes in Net Assets Fiscal Year Ended June 30, (millions) Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Franchise taxes Intergovernmental revenues Unrestricted grants and contributions Unrestricted investment earnings Gain from sale of assets Total revenues Governmental activities 2008 $ Business-type activities 2007 17.1 2.3 5.0 $ 2008 2007 $ Total 2008 2007 31.5 11.2 $ 54.6 2.3 13.9 $ 46.2 2.7 16.5 14.7 2.7 5.3 $ 37.5 8.9 8.2 39.5 2.9 32.8 2.6 4.8 - 7.4 39.6 2.7 30.5 0.1 4.1 - 2.0 - 1.0 - 8.2 39.5 2.9 32.8 2.6 6.8 - 7.4 39.6 2.7 30.5 0.1 5.1 - 115.2 107.1 48.4 43.7 163.6 150.8 11.9 38.5 18.9 14.4 4.6 5.8 5.3 - 10.9 36.1 13.4 15.4 2.1 6.8 2.9 - 18.4 13.3 2.9 14.6 11.5 2.6 11.9 38.5 18.9 14.4 4.6 5.8 5.3 18.4 13.3 2.9 10.9 36.1 13.4 15.4 2.1 6.8 2.9 14.6 11.5 2.6 99.4 87.6 34.6 28.7 134.0 116.3 Expenses: General government Public safety Streets Parks, recreation and culture Environmental health and protection Community design and development Interest on long-term debt Water Wastewater Golf courses Total expenses Transfers Change in net assets 0.1 $ 15.9 (0.3) $ 19.2 (0.1) $ 13.7 0.3 $ 15.3 $ 29.6 $ 34.5 For the fiscal year, net assets increased $29.5 million, with $15.9 of the increase coming from governmental activities. The increase in assets in governmental activities is related in great part to construction of capital assets, rather than accumulation of cash or other liquid assets. The reader should remember that the basis of accounting used in the government-wide statement of activities excludes capital expenditures while its revenues include general taxes whose primary purpose is for the construction of those very assets or their related debt service (i.e., public safety or road sales taxes). Governmental Activities Revenues Governmental activities revenues totaled $115.2 million for fiscal year 2008, up from 2007, mostly in charges for services and intergovernmental revenues. Local sales taxes remain the largest revenue source for the City and are comprised of the 1% general sales tax along with a .5% road tax and a .2% public safety tax. State-shared revenues are the City’s second largest revenue source. State-shared revenues include state sales tax, urban revenue sharing (income tax), auto in-lieu tax and highway user funds (gas tax). Sales taxes and state shared revenues account for 66% of governmental revenues for the year, which is comparable to 2007. Charges for services, the third segment of governmental activities revenues, count building permits and inspections, fines, 8 MANAGEMENT’S DISCUSSION AND ANALYSIS sources. The charges for services category amounts to 15% of governmental revenues. Property taxes represent 7% of governmental revenues. The large majority of property taxes are levied for general purposes with a small levy for downtown mall maintenance. No property taxes are levied for debt service. Various grants and contributions and franchise taxes account for most of the remaining governmental revenues. Some of the more significant changes in governmental activities revenues are noted: • • • Sales taxes declined slightly (less than .3%) from 2007 showing a slowdown in the pace of economic activity in the city. Intergovernmental revenues grew by $2.2 million or 7.3%. State-shared income taxes rose 24% from 2007, as anticipated, while state-shared sales taxes declined by 3% because of the state’s slowing economic output. Charges for services increased by $2.4 million (16.3%) as the city recognized revenues related to developer deposits resulting from continued capital projects completions. RevenuesGovernmental Activities Sales taxes 34% Franchise taxes 3% Property taxes 7% Shared revenues 31% Capital grants and contributions 4% Unrestricted investment earnings 4% Operating grants and contributions 2% Charges for services 15% Expenses Millions Governmental expenses Expenses and Program Revenues-Governmental Activities totaled $99.4 million for the fiscal year. Of the 45.0 expenses, 38.7% or $38.5 40.0 million is related to public 35.0 safety for police, fire and Expenses municipal court services. 30.0 Program Revenues Parks, recreation and 25.0 culture expenses amounted to $14.4 million, or 14.4%, 20.0 while streets and 15.0 community design and 10.0 development expenses amounted to 19.1% and 5.0 5.8% respectively. Interest on long-term debt rose to Interest on Community Environmental General Public safety Streets Parks, long-term debt design and health and government recreation and $5.3 million, or 5.4% of development protection culture governmental expenses. Overall, governmental activities expenses rose 13.5%, or $11.88 million, over 2007. This increase reflects growth in Public Safety expenses, in part because of full-year costs associated with positions added late in the previous 9 MANAGEMENT’S DISCUSSION AND ANALYSIS year. Streets expenses exceeded Parks as the city continues its aggressive infrastructure program. Interest on long-term debt also jumped because of the mid-year bond sale. The chart above compares governmental activities with their respective program revenues, if any. Because the ultimate beneficiary of services of these types is often difficult to ascertain or the services apply to a broad spectrum of users (such as in fire protection), user fees are not created and general revenues provide the funding support for most of these services. Moreover, where ultimate users of the services are determinable, program revenues may generate only a portion of the funding, such as in recreation programs. Business-type activities Revenues General revenues do not support the City’s business-type activities; thus, the largest source of revenues comes from charges for services. Of the $37.5 million in charges for services, 93% comes from the City’s two utility operations, water and wastewater. The remaining charges are from the City’s two golf courses, Desert Hills and Arroyo Dunes. The $8.9 million in contributions are payments for capacity charges and development fees as well as constructed additions to the City’s water and wastewater infrastructure by subdivision and other developers. Finally, investment earnings make up 4% of revenues for the City’s business activities. Revenues-Business-type Activities Capital grants and contributions 18% Charges for services 78% Investment earnings 4% Expenses Water and wastewater services account for 92% of the City’s business-type activities with golf courses making up the remaining 8%. Water expenses amounted to $18.4 million while wastewater expenses totaled $13.2 million. Desert Hills Golf Course and Arroyo Dunes Golf Course recorded expenses of $2.6 million and $.3 million, respectively, for a total of $2.9 million. E x p e n s e s v s . P r o g r a m R e v e n u e s -B u s in e s s - ty p e A c tiv it ie s A B C D C o n trib uEtio n s F C h a rg e s fo r S e rv ic e s 25 Expenses Millions 20 15 10 5 0 W a te r W a s te w a te r G o lf 10 MANAGEMENT’S DISCUSSION AND ANALYSIS Because the City’s business-type activities are supported by user charges, the chart above shows more reliance on program revenues. Moreover, for both water and wastewater, program revenues include capacity charges for new service and developer additions to the utility infrastructure. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental funds. The combined fund balances of governmental funds for the fiscal year ended June 30, 2008, is $95.9 million. This represents a $61.4 million increase in fund balances, the majority of which is unspent proceeds from the bond sale. A review of some of the more significant funds follows. General Fund The fund balance of the General Fund declined by $1.3 million for the fiscal year. Revenues increased by $2.7 million, mostly from an increase in state-shared intergovernmental revenues (state-shared income taxes posted a $2.4 million increase or 24.2%). Sales taxes, the city’s largest source of General Fund revenues, declined slightly to $20.4 million showing the same moderation of activity as experienced by the rest of the country. Expenditures rose 8% to $60.1 million. General government expenditures showed the largest increase as information technology expenditures rose with implementation of new technologies, including document imaging. Highway User Revenue Fund (HURF) This fund, which accounts for the expenditure of state-shared gasoline taxes, showed a decline in fund balance of $1.5 million for the year. The City’s portion of those taxes grew by less than 1% for the fiscal year to remain at $8.1 million; however, escalating materials costs helped to cause overall expenditures to rise by 21% to $9.6 million. City Road Tax Fund This fund accounts for the one-half cent sales tax for use on the City’s roadways in conjunction with HURF. In the same manner as general sales tax in the General Fund, sales taxes declined slightly in 2008 to $10.2 million. Transfers to the Capital Projects Fund for streets projects remained high in 2008, in this case $10.4 million, as the City maintains or expands its network of streets. Grants Fund The City continues to receive much needed assistance from both the state and federal levels. During 2008, revenues reached $4.8 including grants from Homeland Security and from the State of Arizona for aiding with military installation protection and retention. Community Redevelopment Fund The City continued to utilize, in part, its Community Development Block Grant funding and its U.S. Department of Justice Weed and Seed Grant Program funding to operate the Martin Luther King Community Center in the Carver revitalization area. The Community Development Block Grant revenues declined 32% to $.9 million causing related decreases in local grant spending, particularly neighborhood restoration expenditures. Debt Service Debt Service Fund expenditures increased by $7.1 million as the result of initial principal and interest payments on the new municipal property corporation bonds sold in 2008. F und balance reflects amounts set aside for debt service reserves in accordance with the development agreement for the Yuma Palms regional center. Capital Projects Fund The Capital Projects Fund’s fund balance jumped to $67 million this year showing the unspent proceeds of the 2008 bond sale. Capital expenditures increased some 25% over 2007 to $48.5 million primarily in streets and public safety. 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Proprietary funds. The City’s enterprise funds posted an overall increase in net assets of $13.2 million for the fiscal year ended June 30, 2008. The City’s utility funds, water and wastewater, accounted for the increase as both have benefited from system growth and rate increases to sustain that growth. Water Enterprise Fund Operating revenues for the Water Fund increased by $3.2 million or 17.8% for the year ending June 30, 2008. This is due both to the final rate increase of a multi-year series and to a 1% growth in the customer account base to 26,189. Operating expenses rose by 8% and the fund produced operating income of $7.5 million. Revenues from rate increases will continue to finance the ongoing construction of a new water treatment facility on the East Mesa and to make improvements within the current water system needed to maintain service levels and system pressure. Wastewater Enterprise Fund The Wastewater Fund also experienced growth with operating revenues increased 26.1% over fiscal 2007. Operating expenses rose $.9 million with income from operations of improving to $1.9 million. Like the Water Fund, these rate increases along with capacity charge increases have been approved through 2011 to finance costs of construction of the wastewater plant and related infrastructure. Golf Courses Operating losses continued for both of the city's golf courses for the year ended June 30, 2008. Revenues for Desert Hills declined slightly from 2007 to $2.2 million while Arroyo Dunes posted a 2.3% increase to $.2 million. Operating expenses at Desert Hills increased 9.4% causing the fund to post a $.4 million operating loss. Arroyo Dunes experienced a 1% decrease in operating expenses, allowing it to realize operating income of $1,166. The city will continue to operate the courses and implement strategies to improve their financial outlook. GENERAL FUND BUDGETARY HIGHLIGHTS A detailed budgetary comparison schedule for the fiscal year ended June 30, 2008, can be found starting on page 55. A summary of that schedule follows: Budget Revenues and Transfers In Taxes Intergovernmental Other Transfers In Total Expenditures and Transfers Out Expenditures Transfers Out Total Change in Fund Balance Original Final Actual Variance with Final $ 33,242,493 25,266,887 7,981,261 220,100 $ 33,242,493 25,216,887 8,031,261 220,100 $ 31,641,579 24,354,033 7,706,321 490,200 $ (1,600,914) (862,854) (324,940) 270,100 66,710,741 66,710,741 64,192,133 (2,518,608) 64,592,271 6,815,213 64,592,271 6,815,213 60,053,973 5,455,484 4,538,298 1,359,729 71,407,484 71,407,484 65,509,457 5,898,027 $ (4,696,743) $ (4,696,743) $ (1,317,324) $ 3,379,419 General Fund tax revenues didn’t meet expectations because of a slight decline in city sales tax collections. Also, state-shared sales taxes declined from 2007, some $.8 million under budgeted expectations. Combined with a significant reduction in building permits (like the national issue, building permits declined by 32%), General Fund revenues failed to meet expectations although total revenues exceeded 2007 by some $2.6 million. Expenditures for the fund came in at $4.5 million under budget with the largest contributions coming from Public Safety at $2.1 million and General Government adding $1.7 million, primarily because of incomplete projects in 12 MANAGEMENT’S DISCUSSION AND ANALYSIS Information Technology and another year of avoiding expenditure of contingency funds. Public Safety savings occurred mostly in the Police Department in Administration and Field Operations through personnel attrition. The remaining savings occur because city departments rarely spend up to their respective budgets, for similar reasons. The chart shows no change in budgetary amounts; however, with the City Administrator’s ability to transfer appropriations within a fund, some changes in budget between departments occurred during the year. In each case, the transfers of budgetary authority were minor. Overall, expenditures remained below budgeted amounts, with only Parks and Recreation exceeding its annual appropriation. CAPITAL ASSETS At June 30, 2008, the City of Yuma’s investment in capital assets in both governmental and business-type activities amounted to $588.1 million, net of depreciation. This includes land, buildings, equipment, and infrastructure (roadways and bridges). Capital assets for governmental activities increased by 16% while business-type capital assets increased 31%. These changes included the following: • • • • • th Land purchases for governmental activities amounted to $16.9 million for rights-of-way for the 24 Street, nd 32 Street and Avenue 3E projects and an East Mesa park Construction continued on the new East Mesa water treatment plant. The Araby Road project was near completion. The City’s newest Fire Station #6 was completed. Infrastructure additions are for street lights and traffic signal installations. Change in Capital Assets (In Millions) Governmental Activities Business-type Activities July 1, 2007 Land Buildings Improvements Infrastructure Equipment Construction in Progress Accumulated Depreciation Total $ $ Net Additions/ Deletions 31.5 $ 66.6 34.1 153.5 42.0 35.3 (135.2) 227.8 $ June 30, 2008 16.9 $ 0.2 3.4 2.5 4.0 21.2 (10.1) 38.1 $ July 1, 2007 48.4 $ 66.8 37.5 156.0 46.0 56.5 (145.3) 265.9 $ Total Net Additions/ June 30, Deletions 2008 2.1 $ 8.0 143.0 4.4 166.2 (78.1) 7.8 $ 5.6 0.1 69.7 (6.6) 9.9 $ 8.0 148.6 4.5 235.9 (84.7) 245.6 76.6 322.2 $ $ $ 58.3 74.8 186.1 156.0 50.5 292.4 (230.0) 588.1 Additional information on capital assets can be found in Note II-E starting on page 42. DEBT ADMINISTRATION During the year ended June 30, 2008, the Yuma Municipal Property Corporation issued $219.8 million in Series B, Series D and Utility Revenue Bonds, $91.8 million pertaining to governmental activities and $127.9 million pertaining to business-type activities. At June 30, 2008, after scheduled debt payments, governmental activity debt increased to $156.9 million while business activitiy debt increased to $218.4 million. The additional longterm debt will provide financing for a variety of infrastructure needs, including roadways construction, public safety facilities , and utility system improvements and water plant completion. The state limits the amount a municipality may issue in general obligation debt to 20% of the City’s secondary assessed valuation for combined water, wastewater, artificial light, parks, open space preserves, playgrounds and recreational facilities. Debt related to other projects is limited to 6% of the valuation. The current debt limitation for the former type is $114 million, well above the outstanding general obligation debt of $6.4 million. No debt is outstanding for the other type of issuance. Because all the general obligation debt is related to the water system, and because water revenues are used to pay the debt service requirements of the issues, no secondary property taxes are assessed by the City for debt service. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS The City’s recently issued improvement district bonds were rated by Fitch Ratings as “A”. All other bond issues have been upgraded to an “A+” rating by Fitch. Moody’s Investor Services rates the bonds at “A3” while Standard and Poor’s rates the Series B, and Series D and the Utility Series at “AAA-“, “A+” and “A”, respectively. With the exception of the improvement district bonds, all City bond issues are insured, and while the city enjoys higher ratings, the guarantors can no longer provide “AAA” rating as a result of recent ratings reviews of the insurance companies. A summary of the City’s long-term debt follows. Additional information on the City’s long-term debt can be found in Note II-G on pages 45-49. Summary of Long-Term Debt Governmental Business-type activities activities 2008 General Obligation Bonds Yuma Municipal Property Corporation Bonds Net Unamortized Premium/Issuance Costs Improvement District Contracts Payable Compensated Absences Total Long-Term Debt $ 144.1 1.2 8.8 2.8 $ 156.9 2007 $ 2008 - $ 54.9 (.1) 9.8 .1 2.7 $ 67.5 6.4 2007 $ 7.4 Total 2008 $ 6.4 2007 $ 7.4 127.9 - 272.0 54.9 3.7 80.4 - (.2) 84.2 - 4.9 8.8 80.4 2.8 (.3) 9.8 84.3 2.7 $ 218.4 $ 91.4 $ 375.3 $ 158.9 ECONOMIC FACTORS Yuma County continues to be one of the fastest growing areas in the nation and the City of Yuma represents 46% of the county’s population. Since 2000, the City has grown by 31% to an estimated 93,212 at July 1, 2007, the most recent numbers available. The City’s economy is based on a triad of agriculture, tourism and military/government spending. Agribusiness continues to lead the economy, now contributing over $1 billion annually. The area’s 85,000-plus winter visitors add $450 million to the mix, while two prominent military installations infuse some $300 million to the economy. Property taxes are limited constitutionally in Arizona, so other local revenues make up the most significant reflectors of the condition of the economy. Sales tax, the City’s primary source of general revenues, posted a 1% decrease this year, missing its historic growth rate of 7%, and the first decline in year-to-year sales tax since 1985. This still compares more than favorably to the large metropolitan areas of the state. For fiscal year 2008, revenues were projected using a 5% growth in sales taxes. Not all economic statistics reflect positive results; however, in that the City continues to suffer what appears to be higher unemployment figures than most of the state, according to the Arizona Department of Economic Security (DES). One significant factor here is the effect of farm employment which skews this statistic. Still a significant issue, the City combats this problem by providing the majority of support to the Greater Yuma Economic Development Corporation in its activities to encourage new employers to the area. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to familiarize our citizens, taxpayers and customers with the City’s finances and to demonstrate the City’s fiscal accountability for its operations. Questions concerning this report, or requests for additional financial information, should be directed to Mr. Donald (Pat) Wicks, Finance Director, One City Plaza, PO Box 13012, Yuma, AZ 85366-3012, telephone (928) 373-5087. The reader may also visit the City’s website at www.yumaaz.gov for an electronic version of this report. 14 BASIC FINANCIAL STATEMENTS 15 16 GOVERNMENT-WIDE FINANCIAL STATEMENTS 17 City of Yuma, Arizona Statement of Net Assets June 30, 2008 Assets Cash and Investments Receivables, Net Internal Balances Inventory, at cost Prepaid Items Capital Assets: Non-depreciable Depreciable, Net Total Assets Governmental Activities Business-type Activities $ 140,806,967 $ 20,020,350 (1,024,979) 757,991 97,988 Total 74,022,268 $ 214,829,235 6,530,171 26,550,521 1,024,979 233,936 991,927 8,462 106,450 104,961,290 160,892,431 426,512,038 245,886,107 76,372,801 404,078,724 350,847,397 237,265,232 830,590,762 4,117,741 4,912,516 3,485,940 24,374,561 4,756,548 853,638 4,626,286 203,471 8,874,289 5,766,154 8,112,226 24,578,032 8,230,000 148,682,247 193,803,005 9,911,051 208,466,028 228,817,022 18,141,051 357,148,275 422,620,027 169,402,640 151,032,271 320,434,911 Liabilities Accounts Payable Accrued Liabilities Accrued Interest Payable Unearned Revenue Long-Term Liabilities: Due within one year Due in more than one year Total Liabilities Net Assets Invested in Capital Assets, Net of Related Debt Restricted for: Debt Service Streets Capital Projects Parks and Recreation Unrestricted Total Net Assets 529,182 150,152 679,334 4,948,965 4,948,965 10,833,313 10,833,313 1,641,401 1,641,401 45,353,532 24,079,279 69,432,811 $ 232,709,033 $ 175,261,702 $ 407,970,735 The accompanying notes are an integral part of these financial statements 18 City of Yuma, Arizona Statement of Activities For the Year Ended June 30, 2008 Net (Expense) Revenue and Changes in Net Assets Program Revenues Functions/Programs Government Activities: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Interest on Long-Term Debt Total Governmental Activities Business-type Activities: Water Wastewater Golf Courses Total Business-type Activities Total Charges for Services Expenses Operating Grants and Contributions $ 11,875,382 $ 2,852,670 $ 38,510,605 2,617,001 18,942,929 - 211,500 $ 720,973 - 14,353,065 1,253,772 10,336 4,603,821 1,820,668 45,090 5,806,885 8,503,408 1,306,315 5,331,135 - 99,423,822 17,047,519 18,388,648 13,269,964 2,889,040 21,772,810 13,190,859 2,509,891 34,547,652 37,473,560 $ 133,971,474 $ 54,521,079 $ Capital Grants and Contributions 2,294,214 Business-type Activities Total $ (8,811,212) $ 2,957,461 (32,215,170) (18,942,929) - $ (8,811,212) (32,215,170) (18,942,929) 1,128,958 (11,959,999) - (11,959,999) - (2,738,063) - (2,738,063) 914,000 4,916,838 - 4,916,838 - (5,331,135) - (5,331,135) (75,081,670) - (75,081,670) 5,000,419 - 3,781,448 5,092,914 - - 8,874,362 2,294,214 $ 13,874,781 General Revenues: Property taxes Sales taxes Franchise taxes Intergovernmental, unrestricted Grants and contributions not restricted to specific programs Unrestricted investment earnings Total general revenues Transfers Total general revenues and transfers Change in net assets Net assets-beginning Governmental Activities (75,081,670) 8,249,526 39,477,918 2,893,077 32,788,420 2,599,855 4,842,220 90,851,016 95,970 90,946,986 15,865,316 216,843,717 7,165,610 5,013,809 (379,149) 11,800,270 11,800,270 1,915,931 1,915,931 (95,970) 1,819,961 13,620,231 161,641,471 7,165,610 5,013,809 (379,149) 11,800,270 (63,281,400) 8,249,526 39,477,918 2,893,077 32,788,420 2,599,855 6,758,151 92,766,947 92,766,947 29,485,547 378,485,188 $ 232,709,033 $ 175,261,702 $ 407,970,735 Net assets-ending The accompanying notes are an integral part of these financial statements. 19 20 FUND FINANCIAL STATEMENTS 21 City of Yuma, Arizona Balance Sheet Governmental Funds June 30, 2008 Major Special Revenue Funds General Assets Cash and Investments Cash with Fiscal Agents Receivables, Net of Allowances for Uncollectibles: Accounts Receivable Intergovernmental Special Assessments Delinquent Property Taxes Accrued Interest Due from Other Funds Inventory, at cost Prepaid Items Total Assets and Other Debits Highway Users Revenue $ $ 18,508,888 $ - 2,589,583 - 609,005 2,873,898 20,169 252,962 154,382 917,680 183,029 94,028 23,614,041 $ 123 652,193 17,012 488 3,259,399 City Road Tax $ $ Grants 1,975,693 794,218 21,958 2,791,869 $ $ 251,844 805,406 987 1,058,237 Liabilities and Fund Balances Accounts Payable Accrued Payroll, Taxes and Benefits Payable Long-Term Debt - Current Portion Due to Other Funds Accrued Interest Payable Deposits Deferred Revenues Total Liabilities Fund Balance: Reserved for: Inventory Prepaid Items Debt Service Unreserved: Designated for Uncompleted Projects Designated for Debt Service Designated for Subsequent Years' Expenditures Designated for Future Community Improvements, reported in: General Fund Special Revenue Funds Undesignated, reported in: General Fund Special Revenue Funds Total Fund Balances Total Liabilities and Fund Balances $ 761,371 3,570,191 111,604 286,067 4,729,233 $ 183,029 94,028 - $ 255,773 342,494 598,267 $ 17,300 28,477 576 494,871 541,224 $ 9,610 8,500 328,424 711,703 1,058,237 488 - - - 1,440,760 817,874 1,674,336 - - - 183,986 - - - - 14,490,795 18,884,808 2,660,644 2,661,132 23,614,041 $ 3,259,399 The accompanying notes are an integral part of these financial statements. 22 2,250,645 2,250,645 $ 2,791,869 $ 1,058,237 Community Redevelopment Debt Service $ $ $ $ $ 14,000 - Capital Projects Other Nonmajor Governmental Funds Total 625,299 $ 10,554,425 80,218,252 $ - 3,695,170 - $ 107,878,729 10,554,425 81,948 8,820,000 3,690 $ 20,085,362 $ 208,662 2,211,500 152,051 333,945 83,124,410 $ 280,926 323,094 39,249 11,139 2,425 4,352,003 2,430,795 7,851,038 8,840,169 252,962 389,329 1,251,625 194,168 96,941 $ 139,740,181 100,627 $ 240 $ 24,834 7,250,000 88,172 3,485,940 1,241,227 8,820,000 19,556,180 1,454,860 2,367,709 $ 18,878 13,006,094 15,392,681 187,130 134,838 68,763 67,561 458,292 - 11,139 2,425 - 1,250,131 190,729 1,454,860 - 529,182 - - - - - 529,182 1,454,860 $ 20,085,362 $ 67,731,729 - - - $ 3,699,760 4,109,334 7,250,000 485,935 3,485,940 130,482 24,627,523 43,788,974 194,168 96,941 529,182 69,172,489 817,874 1,674,336 50,000 183,986 50,000 67,731,729 3,830,147 3,893,711 14,490,795 8,741,436 95,951,207 83,124,410 $ 4,352,003 $ 139,740,181 23 City of Yuma, Arizona Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets June 30, 2008 Amounts reported for governmental activities in the statement of net assets are different because: Total Fund Balances per the Balance Sheet-Governmental Funds: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Property tax revenue deferred to later years recognized in year levied in governmental activities. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Compensated absences MPC bonds payable Improvement District #67 Improvement District #68 Net unamortized deferred charges or premiums are not recorded in the governmental funds Net assets of internal service funds that are used by management to charge the cost of equipment replacement and employee-related insurance to individual funds are included in governmental activities in the statement of net assets. $ 95,951,207 254,282,020 252,962 (2,829,801) (136,850,000) (5,150,000) (3,670,000) (1,162,446) 31,885,091 $ 232,709,033 Net assets of governmental activities The accompanying notes are an integral part of these financial statements. 24 25 City of Yuma, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2008 Major Special Revenue Funds Highway User Revenue General Revenues: Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Special Assessments Use of Money and Property Contributions and Donations Miscellaneous Total Revenues $ Expenditures: Current: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Outlay Debt Service Principal Interest and Fiscal Agent Fees Total Expenditures Revenues Over/(Under) Expenditures Other Financing Sources/(Uses): Issuance of Long-Term Debt Transfers In Transfers Out Total Other Financing Sources/(Uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending $ City Road Tax Grants 31,641,579 $ 2,067,503 24,354,033 3,136,143 1,143,006 1,227,999 131,670 63,701,933 8,144,889 144,642 94,132 8,383,663 $ 10,238,080 $ 182,761 197,729 10,618,570 9,722,680 35,619,458 8,551,587 1,523,920 7,826,536 - 1,086,020 - 791,102 24,573 - 204,853 4,035,568 1,333,578 228,969 82,187 250,768 60,053,973 9,603,998 1,168,207 1,159,870 3,647,960 (1,220,335) 9,450,363 3,706,574 (3,706,574) (3,706,574) 490,200 (5,455,484) (4,965,284) 276 (361,871) (361,595) 41,492 (10,408,813) (10,367,321) (1,317,324) (1,581,930) (916,958) 20,202,132 4,243,062 18,884,808 $ 2,661,132 The accompanying notes are an integral part of these financial statements. 26 688,116 16,133 - 3,167,603 $ 2,250,645 4,839,739 3,627 23,078 4,866,444 $ - Community Redevelopment $ 1,264,069 25,192 117,614 1,406,875 Debt Service $ 914,000 408,893 1,322,893 $ 211,500 6,657,214 2,409,812 54,586 9,333,112 $ Total Governmental Funds 8,623,591 $ 423,058 1,806,041 955,100 42,246 37,132 11,887,168 50,503,250 2,067,503 39,237,288 11,599,398 1,143,006 914,000 5,358,026 65,324 632,863 111,520,658 - - - 42,284 2,978,979 9,722,680 37,873,778 8,912,556 11,546,699 - - - 3,736,238 4,756,766 48,580,712 352,090 667,858 5,726,303 51,148,824 8,195,000 5,385,149 13,580,149 497,691 49,078,403 7,777,449 8,312,000 5,885,063 143,884,669 (55,745) (12,257,256) (39,745,291) 4,109,719 (32,364,011) 177,978 (122,233) 55,745 12,284,530 12,284,530 93,685,707 13,093,429 (228,254) 106,550,882 3,596,674 (9,305,380) (5,708,706) 93,685,707 29,684,579 (29,588,609) 93,781,677 (1,598,987) 61,417,666 5,492,698 34,533,541 1,338,645 4,752 - 117,000 2,223 1,462,620 $ Capital Projects Other Nonmajor Governmental Funds - 27,274 66,805,591 - 501,908 926,138 - $ 529,182 $ 67,731,729 $ 27 3,893,711 $ 95,951,207 City of Yuma, Arizona Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds to the Statement of Activities For the Year Ended June 30, 2008 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-governmental funds $ 61,417,666 A portion of property tax revenues recorded on the statement of activities does not provide current financial resources and are not recorded as revenues in the funds Governmental funds report capital outlays as expenditures. In the statement of activities, however, the cost of those assets is allocated over their useful lives as depreciation Depreciation recorded in statement of activities Capital outlay expenditures reported as additions to assets: Capital outlay expenditures-governmental funds Infrastructure maintenance expenditures recorded as capital outlay but not capitalized as asset additions Governmental funds report debt principal service payments as expenditures. The reduction in liability is recorded on the statement of net assets in the government-wide statements Increase in compensated absences expense not recorded in governmental funds Long-term debt proceeds are recorded as other financing sources in governmental funds 63,566 (10,201,352) 51,148,824 (7,011,144) 8,312,000 (90,177) (93,685,707) Investment earnings of the internal service funds are general revenues on the statement of activities 955,384 Interest payments accrued in government-wide statements are not recorded in governmental activities until paid 553,928 Net revenues of internal service funds in excess of expenses reduce governmental activities expenses on the statement of activities 1,802,473 Contributions of infrastructure assets are not recorded as revenues in the governmental funds 2,599,855 $ 15,865,316 Change in net assets of governmental activities The accompanying notes are an integral part of these financial statements. 28 City of Yuma, Arizona Statement of Net Assets Proprietary Funds June 30, 2008 Business-Type Activities-Enterprise Funds Water Fund Wastewater Fund Other Funds Totals Current Assets: Cash and Investments $ 43,419,998 $ 5,733,501 $ 410,930 $ 49,564,429 Receivables, Net of Allowance for Uncollectibles: Accounts Receivable 3,936,230 1,858,515 4,467 5,799,212 Intergovernmental 137,112 256,127 458 393,697 Accrued Interest 258,746 76,698 1,818 337,262 Inventory, at cost 144,542 89,394 233,936 304 8,158 8,462 Prepaid Expenses 47,896,628 7,925,145 515,225 56,336,998 Total Unrestricted Current Assets Restricted Assets: Cash and Investments: Cash with Fiscal Agents 6,198,858 1,851,607 8,050,465 Current Debt Service 1,326,052 1,326,052 Advancement for Future Expansion 6,201,414 8,493,590 14,695,004 386,318 386,318 Customer Deposits 14,112,642 10,345,197 24,457,839 Total Restricted Current Assets 62,009,270 18,270,342 515,225 80,794,837 Total Current Assets Noncurrent Assets: Capital Assets: Land 1,449,641 8,535,656 9,985,297 Buildings 2,911,198 1,931,133 3,102,865 7,945,196 Improvements Other than Buildings 83,635,960 61,996,107 3,015,667 148,647,734 Equipment 2,543,756 1,709,442 278,899 4,532,097 Construction In Progress 142,778,139 93,122,671 235,900,810 (50,006,384) (31,132,437) (3,613,405) (84,752,226) Less Accumulated Depreciation 183,312,310 136,162,572 2,784,026 322,258,908 Total Capital Assets 183,312,310 136,162,572 2,784,026 322,258,908 Total Noncurrent Assets 245,321,580 154,432,914 3,299,251 403,053,745 Total Assets Liabilities Current Liabilities Payable from Current Assets: Accounts Payable 592,012 246,554 35,760 874,326 Accrued Payroll and Related Taxes 402,654 311,586 139,398 853,638 Current Portion-Long-Term Contracts-Principal 40,294 183,324 223,618 Current Portion-Bonds Payable 4,015,450 1,112,050 5,127,500 Estimated Claims and Judgements Due to Other Funds Accrued Interest Payable 2,411,997 762,773 3,174,770 52,170 52,170 Unearned Revenue 7,462,407 2,616,287 227,328 10,306,022 Total Current Liabilities Payable from Current Assets Current Liabilities Payable from Restricted Assets: Accounts Payable 2,542,594 953,310 3,495,904 Deposits 386,318 386,318 Unearned Revenue 17,210 134,091 151,301 Current Portion-Long-Term Contracts-Principal 1,851,150 1,831,283 3,682,433 Current Portion-Long-Term Contracts-Interest 757,586 576,891 1,334,477 Current Portion-Bonds Payable 877,500 877,500 117,039 117,039 Accrued Interest Payable 6,549,397 3,495,575 10,044,972 Total Current Liabilities Payable from Restricted Assets 14,011,804 6,111,862 227,328 20,350,994 Total Current Liabilities Noncurrent Liabilities: Long-Term Contracts Payable 40,152,702 36,320,760 76,473,462 Bonds Payable 100,029,300 28,310,700 128,340,000 870,229 3,652,566 2,782,337 Unamortized Premium/Issuance Costs 142,964,339 65,501,689 208,466,028 Total Noncurrent Liabilities 156,976,143 71,613,551 227,328 228,817,022 Total Liabilities Net Assets Invested in capital assets, net of related debt 72,586,084 75,662,161 2,784,026 151,032,271 Restricted: Debt Service 115,617 34,535 150,152 15,643,736 7,122,667 287,897 23,054,300 Unrestricted 174,236,723 $ 88,345,437 $ 82,819,363 $ 3,071,923 Total Net Assets 1,024,979 Adjustment to reflect consolidation of internal service fund activities related to enterprise funds Assets Net assets of business-type activities The accompanying notes are an integral part of these financial statements. $ 175,261,702 29 Governmental Activities Internal Service Funds $ 22,373,813 130,974 16 125,067 563,823 1,047 23,194,740 23,194,740 219,610 19,251 189,631 26,879,034 (15,735,825) 11,571,701 11,571,701 34,766,441 287,499 136,850 666,332 765,690 1,856,371 1,856,371 1,856,371 11,571,701 21,338,369 $ 32,910,070 City of Yuma, Arizona Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For the Year Ended June 30, 2008 Business-Type Activities-Enterprise Funds Water Fund Operating Revenues: Metered Water Sales Commercial Raw Water Wastewater Charges Meters, Connections and Services Green Fees and Concessions Equipment Rental Miscellaneous Charges Total Operating Revenues $ Operating Expenses: Operations and Maintenance Depreciation Total Operating Expenses Operating Income/(Loss) Non-Operating Revenues/(Expenses): Interest Gain/(Loss) on Disposal of Assets Interest and Fiscal Agent Fees Miscellaneous Revenues Total Non-Operating Revenues/(Expenses) Income/(Loss) before Contributions and Transfers Wastewater Fund 21,026,556 $ $ 239,470 13,126,094 Other Funds - Totals $ 21,026,556 239,470 13,126,094 2,140,135 368,089 2,508,224 374,730 2,140,135 368,089 37,275,074 3,206,097 6,992,420 10,198,517 10,224,802 3,798,142 14,022,944 8,673,701 2,565,743 11,239,444 2,686,262 264,475 2,950,737 21,584,765 6,628,360 28,213,125 6,048,164 2,329,628 8,377,792 7,591,046 1,913,416 (442,513) 9,061,949 1,820,725 1,450,939 (2,416) (4,524,125) 158,820 454,181 (50,047) (2,099,153) 37,999 10,811 1,667 1,915,931 (52,463) (6,623,278) 198,486 955,384 322,963 - (2,916,782) (1,657,020) 12,478 (4,561,324) 1,278,347 3,099,072 (430,035) 4,500,625 3,781,448 (62,521) 5,092,914 (33,449) 230,725 (230,725) 8,874,362 230,725 (326,695) Change in Net Assets 8,393,191 5,315,861 (430,035) Net Assets - Beginning 79,952,246 77,503,502 $ - 26,766 13,152,860 256,396 Net Assets - Ending $ 347,964 21,613,990 4,674,264 Capital Contributions Transfers In Transfers Out Governmental Activities Internal Service Funds 88,345,437 $ 82,819,363 $ 13,279,017 29,810,998 3,071,923 $ 341,214 $ The accompanying notes are an integral part of these financial statements. 30 3,099,072 3,501,958 Adjustment for consolidation of internal service fund activities related to enterprise funds Change in net assets of business-type activities - 13,620,231 32,910,070 City of Yuma, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2008 Governmental Activities Business-Type Activities-Enterprise Funds Water Fund Cash Flow from Operating Activities: Cash Received from Customers Cash Paid to Employees Cash Paid to Suppliers Cash Paid for Operating Expenses Other Operating Activity Revenue Net Cash Provided by Operating Activities $ Cash Flow from Capital and Related Financing Acitivities: Contributions of Capital Acquisition and Construction of Assets Proceeds from Sale of Capital Assets Issuance of Debt - 2007 Revenue Bonds Premiums - 2007 Revenue Bonds Principal Payments on Bonds WIFA - Contracted Loan Interest and Fiscal Agent Fee Payments Net Cash Provided by/(Used for) Capital and Related Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, July 1 $ Reconciliation of Operating Income/(Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss) $ Adjustments to Reconcile Operating Income/(Loss) Depreciation and Amortization Expense (Increase)/Decrease in Accounts Receivable (Increase)/Decrease in Inventories (Increase) in Deposits (Increase)/Decrease in Prepaid Items Increase/(Decrease) in Accounts Payable Increase in Accrued Payroll and Related Taxes Increase in Unearned Revenue (Decrease) in Claims Incurred but Not Reported Increase/(Decrease) in Customer Deposits Other Operating Activity Revenue Total Adjustments $ Net Cash Provided by Operating Activities Noncash Transactions Affecting Financial Position Purchase of Assets with Vendor Provided Financing $ Contributions of Capital Assets Total Noncash Transactions Affecting $ Financial Position Other Funds Totals 21,090,074 $ 13,518,222 $ 2,505,633 $ 37,113,929 (3,774,845) (2,732,775) (1,184,147) (7,691,767) (6,503,455) (5,886,644) (1,470,803) (13,860,902) 37,999 1,665 198,484 158,820 10,970,594 Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Cash Paid to Other Funds Net Cash Provided by/(Used for) Noncapital Financing Activities Cash and Cash Equivalents, June 30 Wastewater Fund 4,936,802 (147,652) Internal Service Funds $ 10,209,266 (1,260,671) 89,685 (4,875,428) - 15,759,744 4,162,851 (62,521) (33,449) 230,725 (230,725) 230,725 (326,695) (282,995) - (62,521) (33,449) - (95,970) (282,995) 2,767,405 (60,711,137) 98,502,250 3,546,375 (1,048,410) (1,891,157) (2,726,940) 3,192,737 (23,322,253) 29,422,750 1,059,307 (1,950,040) (1,615,490) - 5,960,142 (84,033,390) 127,925,000 4,605,682 (1,048,410) (3,841,197) (4,342,430) (3,943,034) 383,216 - 38,438,386 6,787,011 - 45,225,397 (3,559,818) 1,290,121 1,290,121 419,687 419,687 12,133 12,133 1,721,941 1,721,941 990,459 990,459 50,636,580 12,110,051 (135,519) 62,611,112 1,310,497 6,896,060 3,968,647 546,449 11,411,156 21,063,315 410,930 $ 74,022,268 $ 22,373,813 (442,513) $ 9,061,949 57,532,640 $ 16,078,698 $ 7,591,046 $ 1,913,416 $ 3,798,142 (566,429) (58,932) (1,800) 1,994 (78,909) 2,565,743 263,608 3,828 41,706 264,475 (942) 5,742 1,754 16,728 6,628,360 (303,763) (53,190) (1,800) 7,576 (20,475) 2,329,628 62,129 27,781 (1,047) 98,519 21,672 104,990 158,820 3,379,548 8,748 7,190 94,564 37,999 3,023,386 7,083 (1,646) 1,667 294,861 37,503 7,190 197,908 198,486 6,697,795 11,505 (186,388) 2,342,126 10,970,594 $ 4,936,802 $ 2,702,149 $ 1,014,043 967,902 $ 1,900,177 - 3,716,192 $ 2,868,079 $ - The accompanying notes are an integral part of these financial statements. 31 (147,652) $ $ 1,820,725 15,759,744 $ 4,162,851 $ 3,670,051 2,914,220 $ - $ 6,584,271 $ - 32 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Yuma (City) was incorporated April 14, 1914 under Arizona Revised Statute Chapter 9, Section 101, and adopted its first charter on June 11, 1914. The City presently operates under a charter that was last amended on January 2, 2002. The Charter provides for a Council-Manager form of government and provides such services as are authorized by the Charter. Among these services are general government services, public safety (police and fire), parks, recreation, culture, streets, environmental health and protection, and community design and development. The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. With respect to proprietary activities, the City has adopted GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. The City has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions, issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The following is a summary of the more significant policies. A. Reporting Entity The City is a municipal entity governed by an elected mayor and council. As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and so data from these units are combined with data of the City, the primary government. The component units presented have a June 30 year-end. Blended Component Units Yuma Municipal Property Corporation. The Yuma Municipal Property Corporation's board members are appointed by the City Council. The Corporation was formed to finance the acquisition of certain improvements such as the Yuma Civic and Convention Center, Baseball Complex and Desert Hills Golf Course. The Corporation was also used to finance the acquisition of three public safety buildings, (the police headquarters, a fire station and the Municipal Court facility) and Public Works facilities, along with a clubhouse for the municipal golf course and the new Municipal Complex. The Corporation conducts no business other than with the City and that business is solely the retirement of debt related to the aforementioned acquisitions. Complete financial statements may be obtained at the City of Yuma, City Clerk’s Office, One City Plaza, PO Box 13012, Yuma, AZ 85366-3012. City of Yuma Employee Benefits Trust. The City of Yuma Employee Benefits Trust is responsible for providing health insurance for the City employees. The City Council appoints the Trust’s Board of Directors. The Trust provides services entirely to the City and therefore has been included as an Internal Service Fund as of June 30, 1997 in accordance with the criteria established in GASB Statement No. 14, The Financial Reporting Entity. Complete financial statements may be obtained at the City of Yuma Employee Benefit Trust’s administrative offices, One City Plaza, PO Box 13012, Yuma, AZ 85366-3012. B. Government-wide and fund financial statements The government-wide financial statements report financial information on all the activities of the City of Yuma and its component units. These financial statements include the Statement of Net Assets and the Statement of Activities, a statement showing changes in net assets. Most interfund activities have been removed from these statements to avoid duplicating the information with some exceptions such as proprietary fund sales to governmental funds (i.e., water bills paid by a governmental fund). Eliminating these transactions would distort both the measurement of income generated in serving proprietary customers as well as the direct cost of governmental functions serving the citizenry. In these government-wide statements, governmental activities, normally supported by taxes and intergovernmental revenues, are separated from business-type activities that rely on fees and charges for services. 33 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 The statement of activities presents direct expenses of a given function or segment and the degree to which these expenses are 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 who use or directly benefit from the services of the function; and 2) grants and contributions that are restricted to the operational or capital needs of a particular function. Taxes and other revenues that are identifiable with a particular function or segment are reported as general revenues. In addition to government-wide presentations, fund financial statements are provided for all governmental and proprietary funds. The financial statements are segregated by their respective significance to City operations with individual major governmental and proprietary funds separated from nonmajor funds (aggregate nonmajor financial activity is reported as a column on the major funds presentation for both governmental and proprietary funds). The City uses GASB Statement No. 34 to determine which funds are to be presented as major funds. In addition to those minimum requirements, the City will, from time to time, include within its major funds presentations of other funds, that because of their significance preclude aggregate reporting outside the basic financial statements. The City of Yuma reports the following funds: GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those for which another fund is required or used. Highway User Revenue Fund – This fund accounts for the receipt and expenditure of the state-shared Highway User Revenue Fund (primarily gas tax) for maintenance and construction of roadways. City Road Tax Fund – This fund accounts for the collection and expenditure of a local one-half percent transaction privilege tax approved by voters in 1994 for maintenance and construction of roadways. While some operating expenditures related to retention basins are recorded within the fund, most revenues are eventually transferred to the Capital Projects Fund where construction expenditures for roadways are recorded. Grant Fund - The Grant Fund accounts for all of the federal and state grants provided to the City with the exception of the Community Development Block Grant, the Economic Development grant and the Weed and Seed Grant. Community Redevelopment Fund – This fund accounts for the financial activities of Community Development Block Grant, Economic Development Grant and Weed and Seed Grant funds. Debt Service Fund – This fund accounts for expenditures to service the debt of the City of Yuma Municipal Property Corporation, a blended component unit, and Special Assessment Improvement Districts. Pledged excise tax and other revenues are transferred to this fund along with property owner’s revenue for payments of long-term bonded debt. Capital Projects Fund – The Capital Projects Fund accounts for the expenditure of monies for purchase or construction of long-lived capital assets including land and buildings and streets infrastructure. Other Governmental Funds – Other nonmajor governmental funds of the City of Yuma are aggregated and are presented in a combining statement in the Other Supplementary Information section. These include the Local Transportation Assistance; Public Safety Tax; Solid Waste; Recreation Complex; Two Percent Tax; and Yuma Mall Maintenance Special Revenue Funds. PROPRIETARY FUNDS Water Fund – The operations of the City’s drinking water treatment and distribution system are accounted for in this enterprise fund. 34 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Wastewater Fund – This enterprise fund accounts for the City’s wastewater collection and treatment system. Other Enterprise Funds – Other nonmajor enterprise funds of the City of Yuma are aggregated along with the major enterprise funds and are also presented in a combining statement in the Other Supplementary Information section. These funds include the Desert Hills Golf Course and Arroyo Dunes Golf Course Funds. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. They are also presented in the aggregate with major enterprise funds and are included in a combining internal service fund presentation in the Other Supplementary Information section. Because they service primarily governmental funds, they are not included within the business-type activities of the Statement of Net Assets. Rather, they are combined with the governmental activities on that statement. Moreover, because of their essentially duplicative nature in accounting for their operations (revenues of the internal service funds are expenses of the operating funds), the operations of the internal service funds have been eliminated from the operations of the Statement of Activities. Internal service funds include the Equipment Replacement, Equipment Maintenance, Insurance Reserve, Workers Compensation and Employee Benefits Trust Funds. C. Measurement focus and basis of accounting The government-wide financial statements, as well as the proprietary fund financial statements, use the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the liability is incurred. Property taxes are recognized as revenue in the year levied. Grants are recognized as revenue when all eligibility requirements are met and the underlying expenses have been recorded. Governmental fund financial statements are presented 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 available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period (within 60 days). Expenditures are recorded when the liability is incurred. Exceptions include debt service expenditures (recorded when the payment is due) and compensated absences (recorded when earned exclusive of long-term portions not expected to be paid within one year). Property taxes, along with franchise taxes, licenses and sales taxes are susceptible to accrual and have been recognized as revenues of the current period. Delinquent property taxes and property taxes for which there is an enforceable legal claim as of the fiscal year, but which were levied to finance operations of the subsequent fiscal year, have been recorded as deferred revenue. Grants and similar awards received before the eligibility requirements are met are also recorded as deferred revenue. Receivables that will not be collected within the available period have also been reported as deferred revenue on the governmental fund financial statements. All other revenue items are considered measurable and available only when cash is received. Proprietary funds classify revenues and expenses as operating or nonoperating items. Operating revenues and expenses relate to the fund’s ongoing operations in providing goods and services. Operating revenues for the City’s proprietary funds are customer charges for sales and services. Operating expenses include the cost of sales or services, administrative expenses and depreciation. All other revenues and expenses are classified as nonoperating revenues and expenses. D. Budget Information 1) The City follows these procedures in establishing the budgetary data reflected in the financial statements: i. On or before the first Monday in June, the City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. ii. Two public hearings are held prior to the budget's final adoption in order to obtain taxpayer comments. 35 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 iii. On or before the third Monday in August, the budget is legally enacted through passage of an ordinance. iv. At any time during the fiscal year, the City Administrator may transfer part or all of any unencumbered appropriation balance among programs within a fund. Upon written request by the City Administrator, the Council may, by ordinance, transfer part or all of any unencumbered appropriation balance from one fund to another. v. Formal budgetary integration is employed as a management control device during the fiscal year for all funds with legally adopted budgets (only the Workers Compensation and Employee Benefits Trust Internal Service Funds are not budgeted). Appropriations not expended at fiscal year end lapse. vi. Budgetary amounts include those as originally adopted, and as amended by Council or City Administrator through the end of the fiscal year. Arizona State Statute does not allow supplemental budgets. vii. Expenditures incurred during the fiscal year may not legally exceed the publicly published budget. The maximum legal expenditure permitted for the fiscal year is the total adopted budget. 2) Budgetary Reporting and Budgetary Basis of Accounting: The City has opted to display budgetary information schedules in a manner similar to its adopted budget; therefore, the information is displayed outside its basic financial statements. Budgetary comparisons are presented for the General Fund and the major Special Revenue Funds in the Required Supplementary Information section. Budgetary comparisons for the Debt Service Fund, the Capital Projects Fund, the nonmajor governmental funds and the proprietary funds are presented in the Other Supplementary Information sections. For proprietary funds, the budgetary comparison includes reconciliation to the accrual-based operating statements. E. Assets, Liabilities and Fund Equity Disclosures 1) Transactions between Funds: Interfund transactions consisting of identified services performed for other funds or costs billed to other funds are treated as expenditures in the fund receiving the services and as a reimbursement reducing expenditures in the fund performing the services. Exceptions to this include: (1) sales of water and wastewater treatment are treated as revenue by the Enterprise Fund, and in-lieu property taxes are recorded as revenues in the General Fund and expenses in the Enterprise Funds; (2) operating transfers are made in certain other funds to shift resources from a fund legally required to receive revenue to a fund authorized to expend the revenue; and (3) charges for services of the Internal Service Funds are recorded as expenditures in the funds receiving the service. For purposes of government-wide presentation, these latter transactions are eliminated. 2) Cash and Investments: Cash balances of the City’s funds are pooled and invested by the City. The policy of the City is to invest public funds in a manner which will provide the maximum security of principal invested and conform to all applicable State statutes and City ordinances while providing the highest yield and meeting the City’s daily cash flows. Income earned or loss arising from the investment of the pooled cash is allocated on a monthly basis to the individual funds based upon average daily balance. In accordance with GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City reports its investments at fair value based on quoted market information obtained from fiscal agents or other sources. 3) Inventories: Inventories of the General Fund, Special Revenue Funds, Internal Service Funds, and Enterprise Funds consist primarily of expendable supplies held for consumption. These inventories are maintained on a perpetual inventory basis verified through annual physical counts. Items are valued using the weighted 36 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 average method. Expenditures are recorded at the time inventories are used in the governmental funds; therefore, the reserve for inventory is equal to the inventory level needed to maintain adequate operating supplies and indicates that a portion of fund balance is not available for future expenditures. 4) Grants Revenue: The City follows the policy that, grants and similar items are recognized as revenue or contributed revenue as soon as all eligibility requirements imposed by the provider have been met. 5) Unbilled Accounts Receivable: The City records as receivables and as revenues the amount of water sales, sewer service charges and commercial refuse collection charges accrued but unbilled at fiscal year end. At June 30, 2008, the estimated amounts of unbilled revenues for the Water and Wastewater Enterprise Funds and the Solid Waste Special Revenue Fund are $2,492,943, $1,020,156, and $168,079, respectively. 6) Capital Assets: Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets include property, plant, equipment and infrastructure (e.g., roads, bridges and similar items) and are defined as assets with an individual cost of more than $5,000 and a useful life exceeding one year. These assets are valued at cost or estimated historical cost if original cost is not available. Gifts or contributions are stated at fair market value at the date received. Depreciation and amortization have been provided over the estimated useful lives using the group life method on a straightline basis and the following useful lives: Buildings Improvements 33 to 100 years 20 to 50 years Infrastructure Equipment 35 years 2 to 50 years For proprietary fund assets constructed with bond proceeds, interest costs have been capitalized, net of interest revenue. Gains or losses are recognized when assets are retired from service or are otherwise disposed. 7) Contributions: Contributions, as shown in the Enterprise Funds, represent sub-dividers' costs of installing water and sewer mains, water service connections installed at the customers' expense, transfers of equipment from other City funds, and contributions from customers to defray future expansion costs. 8) Long-term obligations: In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or bond discount. Bond issuance costs are reported as deferred charges and amortized over the life of the debt. 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. 37 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 9) Reserves and Designated Fund Balances: In the governmental fund financial statements, reserves are recorded to signify that a portion of the fund equity is segregated for future use and is not available for appropriation or expenditure. Designated fund balances are recorded to represent resources available to finance intended future expenditures based upon managerial plans. F. Revenues, Expenditures, Expenses and Other Disclosures 1) Property Tax Revenue Recognition: Yuma County is responsible for billing and collecting property taxes. Collections by the County in one month are remitted to the City in the next month. For government-wide presentation, revenues equal the taxes levied for the fiscal year. No allowance for uncollectible taxes has been recorded as the City’s experience shows that after five years the amount uncollected represents less than one-half percent of the original levy. For governmental fund statement purposes, at fiscal year end, delinquent property taxes expected to be collected within 60 days are recognized as revenue and recorded as receivable. The balance of delinquent taxes is recorded in the property tax receivable account with a corresponding entry to the deferred revenue account. 2) Compensated Absences: The City's administrative regulations provide permanent City employees with general and major illness leave in varying amounts based on years of service. In addition, employees may accrue hours worked on holidays for absences or payment in the future. General leave vests with the employee as it is earned. At fiscal year end, the Governmental Funds include an accrual of general and holiday leave pay and related benefits that would normally be liquidated with expendable available financial resources. All governmental funds (excepting the Capital Projects, Debt Service, Local Transportation Assistance and Two Percent Tax Funds), to varying degrees, liquidate these benefits. General and holiday leave with related benefits in excess of this accumulation, $2,286,356 are recorded in the governmental activities column of the government-wide financial statements. The amounts of general and holiday leave pay and related benefits attributable to the Water, Wastewater, Desert Hills, and Arroyo Dunes Enterprise Funds are $225,624, $183,310, $80,737 and $7,145 respectively, and are recorded in those funds and in the business-type activities of the government-wide statements and accrued as earned. Major illness leave benefits provided for ordinary sick pay are not vested with the employee. Unused benefits are payable only upon the death or retirement of the employee. At June 30, 2008, the amount accumulated in sick pay and related benefits is $7,674,006, including $166,515 attributable to Internal Service Funds and $947,391 to Enterprise Funds. Under GASB Statement No. 16, Accounting for Compensated Absences, the City uses the “termination payment” method to determine its provision for major illness leave liability. The portion of the major illness leave liability related to governmental fund types, $543,445, is reported within the governmental activities column of the government-wide financial statements, as current amounts of that liability have been determined to be immaterial and are not recorded within the respective governmental funds. The provision for probable future major illness leave and related benefits attributable to the Equipment Maintenance Internal Service Fund is $15,237 and Water, Wastewater, and Desert Hills and Arroyo Dunes Golf Course Enterprise Funds of $48,250, $35,552, $11,786 and $911 respectively, are recorded in those funds and are accrued as earned. G. Investment Income Investment income is composed of interest and net changes in the fair value of applicable investments. H. Use of Estimates The preparation of 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 could differ from those estimates. 38 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 II. DETAIL NOTES ON ALL FUNDS A. Cash and Investments The City maintains a cash and investments pool that is available to all funds. Each fund’s portion of the cash and investment pool is shown in the accompanying balance sheet as “Cash and Investments”, including the portion listed under “Restricted Assets”. The City also records cash and investments, held by fiscal agents, which are restricted by bond indenture requirements for the payment of principal and interest at the end of the fiscal year. Deposits At June 30, 2008, the City’s deposits had a carrying value of $124,588 and a bank balance of $379,141. The difference represents outstanding checks and other reconciling items. The main City checking accounts sweeps nightly to a money market fund and is disclosed with investments. Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City’s deposits may not be covered. The City requires all demand deposits be covered by federal depository insurance or by pledged collateral held by the financial institution’s trust department in the name of the City at 102% of market value. At June 30, 2008, there are no deposits exposed to custodial credit risk. The petty cash and change fund balances totaled $25,560. Investments The City adheres to State Law and its adopted Investment Policy to invest public funds in a manner which will provide the maximum security of principal invested while providing the highest yield which will also meet the daily cash flow needs of the City. The City’s investment balances at June 30, 2008 were as follows: Investment Type Fair Value Investment Maturities in Years < 1 Year Commercial Paper US Agencies: Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mtg. Corp. Federal National Mtg. Assoc. Money Market Funds State Investment Pool Total Value $ 48,630,690.00 $ 48,630,690.00 $ $ 1-2 Years - 2-3 Years $ - 3-5 Years $ - 2,000,000 2,000,000 35,684,714 14,237,527 9,998,750 10,457,188 991,249 23,359,206 9,430,993 3,972,888 3,969,110 5,986,215 13,706,594 5,705,344 3,014,688 4,986,562 62,822,049 62,822,049 28,537,394 28,537,394 214,740,647 $ 169,363,997 $ 16,986,326 $ 21,412,860 $ 6,977,464 Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City’s investment policy reduces exposure to investment credit risk by limiting authorized securities to the following: 1. Obligations of the United States Government, its agencies and instrumentalities, excluding mortgagebacked securities; 2. Fully insured or collateralized certificates of deposit and other evidence of deposit at banks and savings and loan associations; 3. Bankers acceptances issued by the ten largest domestic banks; 39 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 4. Commercial paper rated A-1/P-1; 5. Repurchase agreements whose underlying collateral consists of the foregoing, provided a signed PSA Master Repurchase Agreement is on file with the counter party bank or broker/dealer; 6. Money Market Funds whose portfolio consists of the foregoing; 7. The State of Arizona Local Government Investment Pool. At June 30, 2008, all investments, with the exception of the State Investment Pool, are rated AAA by Standard and Poor’s and Aaa by Moody’s. The State Investment Pool is not rated. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investments in a single issuer. The City reduces this risk by diversifying its investment portfolio. Diversification strategies are established and monitored on a monthly basis. The allowed diversification standard and actual percentage at year end by security type and issuer are as follows: Maximum % Actual % U. S. Treasuries and securities having principal and interest guaranteed by the U.S. Government .......................................................................................... 100% 0% U. S. Government agencies, instrumentalities and government sponsored enterprises .......................................................................No more than 80% 35% Fully insured or collateralized CD’s ........................................................No more than 30% 0% Banker’s Acceptances ............................................................................No more than 25% 0% A-1/P-1 Commercial Paper.....................................................................No more than 35% 23% Maximum per issuer...........................................................................10% of total C. P 16% Repurchase Agreements.............................................................................................. 100% 0% Money Market Funds.................................................................................................... 100% 29% State Investment Pool .................................................................................................. 100% 13% The maximum per issuer policy was temporarily exceeded at June 30, 2008 for one commercial paper issuer. Interest Rate Risk Interest Rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with State law and its investment policy, the City sets a maximum maturity on any investment of five years. Unless matched to a specific requirement, no more than 25% of the portfolio may have maturities greater than three years. There are three investments with maturities greater than two years which represents 14.8% of the portfolio, and there are no holdings with a stated maturity beyond five years. The portfolio at June 30, 2008 had a weighted average maturity of 231 days. The policy does not set a maximum for this measurement. Custodial Credit Risk The custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City reduces exposure to custodial credit risk in its safekeeping and collateralization policies. All security transactions are conducted on a delivery versus payment basis and are held by a third party custodian, in the City of Yuma’s name. The custodian is required to issue a safekeeping receipt listing the specific instrument, rate, and maturity. Although there were no certificate of deposit or repurchase agreements at June 30, the collateralization level of at least 102% of market value is required for these securities. B. Property Tax The City's property tax is levied by the Yuma County Treasurer on or before the third Monday in August based upon the previous January 1 full cash value as determined by the Yuma County Assessor. Under Arizona law two assessed valuations are used. One is for primary taxes (used to fund operating expenditures) and the other is for secondary taxes (used to meet general obligation debt service requirements). The primary tax levy is limited to a two percent increase over the previous year with adjustments for growth and annexation. Secondary 40 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 taxes are tied to the annual debt service requirements of voter-approved general obligation bonds. Taxes are due in two equal installments on October 1 and March 1 following the levy date and are delinquent on the first day of November and May, respectively. Liens are filed when taxes are delinquent for two years. Assessed values, levies and collections for fiscal year 2006-07 (Tax Year 2006) and fiscal year 2007-08 (Tax Year 2007), follow: Tax Year 2006 Primary Assessed Valuation Primary Tax Rate Primary Tax Levy Secondary Assessed Valuation Secondary Tax Rate/Levy Current Tax Collections Delinquent Tax Collections Delinquent Taxes Outstanding as of June 30 $ $ $ $ $ $ 421,397,393 1.7373 7,320,954 468,531,273 None 7,125,281 152,952 139,203 Tax Year 2007 $ $ $ $ $ $ 481,651,142 1.6744 8,064,476 572,280,942 None 7,890,159 136,702 252,962 C. Accounts Receivable Receivable balances are stated net of an allowance for doubtful accounts. Within the Special Revenue Solid Waste Fund, an allowance account is established to record the estimated uncollectible refuse collection billings. Within the Water and Wastewater Enterprise Funds, allowance accounts have been established to record estimated uncollectible water and wastewater billings. No allowance account has been made for other types of receivables. The balances of these accounts are as follow: Delinquent Intergovern- Special Property mental Assessments Taxes Interest Accounts General Highway User Revenue City Road Tax Grants Community Redevelopment Debt Service Capital Projects Water Wastewater Other Funds-Governmental Other Funds-Enterprise Internal Service Total $ 609,005 123 1,250,131 81,948 208,662 3,936,230 1,858,515 280,926 4,467 130,974 $ 8,360,981 2,873,898 652,193 794,218 805,406 190,729 2,211,500 137,112 256,127 323,094 458 16 $ 20,169 8,820,000 - $ 252,962 - $ 154,382 17,012 21,958 987 3,690 152,051 258,746 76,698 39,249 1,818 125,067 $ $ 8,244,751 $ 8,840,169 $ 252,962 $ 851,658 $ 26,550,521 Allowance Amount $ 2007 5,358 105,786 43,318 Total $ 2008 Special Revenue Funds Solid Waste Enterprise Funds: Water Wastewater Accrued $ 5,272 92,566 35,246 41 3,910,416 669,328 816,176 806,393 1,440,860 8,905,638 2,572,213 4,332,088 2,191,340 643,269 6,743 256,057 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 D. Due from Other Governments (Intergovernmental Receivables) Amounts due from other government units at June 30, 2008, are as follows: Agencies Federal State County Local Total Governmental Funds Major Funds General Highway User Revenue City Road Tax Grants Community Redevelopment Capital Projects Non-major Funds Public Safety Tax Solid Waste Mall Maintenance Enterprise Funds: Major Funds Water Wastewater Non-major Funds Desert Hills Golf Course Internal Service Funds Equipment Maintenance Total $ 136 686,813 190,729 - $ 2,443,326 646,374 794,218 118,593 2,211,500 - 317,579 35 - 183,170 137,112 36,957 458 $ 1,060,848 $ 16 6,706,168 $ 350,406 5,819 - $ 80,030 - 5,480 $ $ 2,873,898 652,193 794,218 805,406 190,729 2,211,500 - 317,579 35 5,480 - 36,000 137,112 256,127 - - 361,705 $ 116,030 458 16 $ 8,244,751 E. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2008, follows: Balance June 30, 2007 $ 31,459,103 35,325,195 Increases $ 16,973,711 21,203,280 66,784,298 38,176,991 Other Capital Assets: Buildings Improvements Infrastructure Equipment Total Other Capital Assets 66,596,185 34,080,008 153,529,949 42,055,431 296,261,573 227,267 3,380,432 2,497,951 6,450,164 12,555,814 2,555,201 2,555,201 66,823,452 37,460,440 156,027,900 45,950,394 306,262,186 Less Accumulated Depreciation for: Buildings Improvements Infrastructure Equipment Total Accumulated Depreciation 17,415,020 13,726,831 78,357,541 25,761,971 135,261,363 2,192,754 2,878,021 3,726,675 3,733,530 12,530,980 2,422,588 2,422,588 19,607,774 16,604,852 82,084,216 27,072,913 145,369,755 161,000,210 24,834 132,613 160,892,431 $ 227,784,507 $ 38,201,825 $ 132,613 $ 265,853,721 Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated Other Capital Assets, Net Total Capital Assets, Governmental Activities 42 Decreases $ - Balance June 30, 2008 $ 48,432,814 56,528,475 104,961,289 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Government activities capital assets net of accumulated depreciation at June 30, 2008, include: General Capital Assets, Net Internal Service Fund Capital Assets, Net Total $ 254,282,020 11,571,701 $ 265,853,721 Depreciation was charged to governmental functions as follows: General Government Public Safety Parks, Recreation, and Culture Environmental Health and Protection Community Design and Development Streets Assets held by Internal Service Funds are charged based on usage of assets $ 1,528,385 1,952,410 2,765,046 31,146 105,639 3,818,726 2,329,628 Total $ 12,530,980 Business-type activities: Balance June 30, 2007 Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated $ Increases Decreases Balance June 30, 2008 $ $ 2,118,093 166,225,437 168,343,530 $ 7,867,204 72,299,442 80,166,646 7,945,196 143,014,068 4,429,109 155,388,373 5,633,666 130,354 5,764,020 27,366 27,366 7,945,196 148,647,734 4,532,097 161,125,027 Less Accumulated Depreciation for: Buildings Improvements Equipment Total Accumulated Depreciation 4,407,854 71,036,510 2,705,193 78,149,557 198,825 6,081,088 348,447 6,628,360 25,691 25,691 4,606,679 77,117,598 3,027,949 84,752,226 Other Capital Assets, Net 77,238,816 1,675 76,372,801 $ 2,625,744 $ 322,258,908 Other Capital Assets: Buildings Improvements Equipment Total Other Capital Assets Total Capital Assets, Business-type activities $ 245,582,346 (864,340) $ 79,302,306 2,624,069 2,624,069 9,985,297 235,900,810 245,886,107 Depreciation was charged to programs as follows: Water Wastewater Golf courses Total $ $ 3,798,142 2,565,743 264,475 6,628,360 Construction in progress is comprised mainly of water projects (a water treatment plant and related transmission facilities) and wastewater projects (wastewater treatment plant upgrades and improvements, and collection facilities). F. Retirement Plans The City has adopted GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers as amended by GASB Statement No. 50, Pension Disclosures, requires the following disclosures. 43 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Plan Descriptions - The City contributes to the three plans described below. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor and health insurance premium benefits. The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined benefit 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 A.R.S. Title 38, Chapter 5, Article 2. 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 A.R.S. Title 38, Chapter 5, Article 4. The Elected Officials Retirement Plan (EORP) is a cost-sharing multiple-employer defined benefit pension plan that covers elected officials and judges of certain state and local governments. The EORP is governed by The Fund Manager of PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. Each plan issues a publicly available financial report that includes its financial statements and required supplementary information. A report may be obtained by writing or calling the applicable plan. ASRS PSPRS and EORP 3300 North Central Avenue 3010 E Camelback Rd., Ste 200 P.O. Box 33910 Phoenix, AZ 85016 Phoenix, AZ 85067-3910 (602) 240-2200 or (800) 621-3778 (602) 255-5575 Funding Policy - The Arizona State Legislature establishes and may amend active plan members’ and the City’s contribution rate. Cost-sharing plans - For the year ended June 30, 2008, active ASRS members and the City were required by statute to contribute at the actuarially determined rate of 9.6 percent (9.1 percent retirement and 0.50 percent long-term disability) of the members’ annual covered payroll. The City’s contributions to ASRS for the years ended June 30, 2008, 2007, and 2006 were $2,619,640, $2,403,198, and $1,748,357, respectively, which were equal to the required contributions for the year. In addition, active EORP members and the City were required by statute to contribute 7 percent and 20.21 percent, respectively, of the members’ annual covered payroll. The City’s contributions to EORP for the years ended June 30, 2008, 2007 and 2006 were $44,206, $40,782, and $43,463, respectively, which were equal to the required contributions for the year. Agent plans - For the year ended June 30, 2008 active PSPRS members were required by statute to contribute 7.65 percent of the members’ annual covered payroll, and the City was required to contribute at the actuarially determined rate of 14.97 percent for police and 21.62 percent for fire. Schedule of Funding Progress – Funding progress of the two agent plans as of June 30, 2007, the most recent valuation, appears below. Multiyear trend information for the plans immediately follows the Notes to the Financial Statements in the section for Required Supplementary Information. Actual Value of Actuarial Accrued Funding Liability Plan Assets POLICE FIRE 38,668,154 26,853,367 Liability (Excess) 51,924,584 43,029,776 13,256,430 16,176,409 44 Annual Unfunded Liability Funded Covered as Percentage of Ratio Payroll Payroll 9,149,431 5,634,967 144.9% 287.1% 74.5% 62.4% City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Annual Pension Cost - The City’s pension cost for the two agent plans for the year ended June 30, 2007 (the date of the most recent actuarial report) follows: Contribution Rates Annual Pension Cost Contributions Made Actuarial Valuation Date Actuarial Cost Method Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation projection Cost-of-Living Adjustments Amortization Method Remaining Amortization Period Asset Valuation Method Police Fire 14.97% $1,134,675 $1,134,675 June 30, 2007 Entry Age 21.62% $1,120,319 $1,120,319 June 30, 2007 Entry Age 8.50% 5.5% - 7.0% 5.50% None Level Percentage Open 20 years Smoothed market 8.50% 5.5% - 7.0% 5.50% None Level Percentage Open 20 years Smoothed market Trend Information - Information for each of the agent plans as of the most recent actuarial valuations follows: Percent Contributed Annual Pension Cost POLICE FIRE 2005 2006 2007 2005 2006 2007 $ 547,043 828,088 1,134,675 804,531 825,129 1,120,319 Net Pension Obligation 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - G. Long-Term Liabilities The following changes occurred in long-term liabilities during the fiscal year ended June 30, 2008: Governmental activities: Yuma Municipal Property Corporation Improvement District #67 Improvement District #68 Unamortized Discount/Issuance Costs Unamortized Premium Contracts Payable Compensated Absences Total Governmental Activity Long-Term Liabilities Business-type activities: General Obligation Bonds Yuma Municipal Property Corporation Unamortized Discount/Issuance Costs Unamortized Premium Contracts Payable Balance July 1, 2007 Additions $ 55,035,000 $ 5,890,000 3,875,000 (86,185) 117,000 2,739,624 $ 67,570,439 $ $ Retirements Balance June 30, 2008 Due Within One Year 91,885,000 $ 2,820,000 $ 144,100,000 $ 7,250,000 740,000 5,150,000 770,000 205,000 3,670,000 210,000 (497,692) (35,658) (548,219) 1,800,707 90,042 1,710,665 117,000 256,399 166,222 2,829,801 93,444,414 $ 4,102,606 $ 156,912,247 $ 8,230,000 7,535,000 $ $ 1,115,000 $ 6,420,000 $ 1,170,000 127,925,000 127,925,000 4,835,000 (161,149) (695,444) (87,705) (768,888) 4,605,681 184,227 4,421,454 3,774,604 80,379,513 3,906,051 84,154,117 Total Business-type Activity Long-Term Liabilities $ 91,527,968 $ 131,835,237 $ 4,986,126 $ 218,377,079 $ 9,911,051 On the Statement of Net Assets, the current portion of governmental activity long-term liabilities of $8,230,000 excludes the current portion of compensated absences of $1,935,089 that is recorded within accrued liabilities. 45 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 The City has adopted GASB Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. The following disclosures are due in part to that statement. Contracts Payable Business-type activities – During fiscal year 2004, the City began construction of major additions to its utility infrastructure, including additional water and wastewater treatment plants. Financing for these additions comes from the Arizona Water Infrastructure Financing Authority (WIFA) in the form of 20-year loan contracts. The city pledged each system’s net revenues as collateral for the debt. Bonded Debt - Excluding Refunded Debt New Debt Issue – On November 20, 2007, the Yuma Municipal Property Corporation issued three bond series. A Series B Addition of $30,785,000 was issued for construction of a swimming pool, purchase of park land and construction of public safety facilities. A new Series D issue of $61,100,000 will fund the construction or improvement of roadways in the city while a new Utility Series of $127,925,000 will finance the continuing expansion and improvement of the city’s water and wastewater systems. Each series will also reimburse ongoing expenditures temporarily funded by operational monies expended in accordance with reimbursement resolutions authorized by City Council. The Series B, Series D and Utility Series bonds have an average life of 11, 11 and 14 years and were sold at true interest costs of 4.34%, 4.41% and 4.52%, respectively. The following is a description of bonded indebtedness at June 30, 2008. In each instance, all bonds have been issued. For each issue, a number of covenants and restrictions are included in the bond indentures. The City is in compliance with these covenants and restrictions. General Obligation Bonds – These bonds are backed by the full faith and credit of the City and may be repaid through the levying of property taxes. However, because the bonds were issued for the construction or expansion of the City’s water treatment and delivery system, the bonds are recorded in the Water Enterprise Fund and are repaid through that fund. Special Assessment Bonds – Special assessment bonds are issued by the City on behalf of improvement districts created by property owners for a specific purpose. Property owners in the designated districts agree to be assessed for the principal and interest costs of repaying the bonds. As trustee for improvement districts, the City is responsible for collecting the assessments levied against the owners of the property within the improvement districts and for disbursing these amounts to retire the bonds issued to finance the improvements. Special assessment bonds are secured by liens against the property within each district. In the event of delinquency, the City may secure payment of the bonds through sale of the property. All activity related to these bonds is recorded in the City’s Debt Service Fund. Municipal Property Corporation Bonds – In 1970, the City created the Municipal Property Corporation to finance the acquisition or construction of various City projects. Bonds are issued by the corporation and are repaid through unrestricted revenues, primarily excise taxes, by the City. For each issue, the City has pledged its excise tax collections as follows: Excise Taxes – transaction privilege taxes, license fees and franchise fees, along with transaction privilege taxes, income taxes and excise taxes imposed by the State and distributed to the City (except public safety and special sales taxes); Public Safety Taxes – a special two-tenths of one percent (.2%) privilege license tax approved by qualified voters in 1994 for public safety and criminal justice facilities and communication equipment; and Special Sales Taxes – a special two percent (2%) privilege license tax approved by qualified voters in 1993 on the gross proceeds of sales or gross income from the business of bars, restaurants and hotels. For each bond series, the corresponding pledged tax was: Issue 2001 Series 2003 – Series A 2003 – Series B 2003 – Series C 2007 – Series B 2007 – Series D Pledged Tax Excise Taxes Excise and Public Safety Taxes Excise Taxes Excise and Special Sales Taxes Excise and Special Sales Taxes Excise and Special Sales Taxes 46 Project(s) funded City hall construction Refunding 1995 issue Art Center/Fire Station construction Refunding 1995 issue Pool/water park/public safety facilities Streets projects City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 In addition to, or in lieu of, excise taxes, the City may use other operational revenues to repay the debt, as budgeted in each fund. These include payments from the Water, Wastewater and Desert Hills Golf Course Enterprise Funds, and Highway User Revenue and Solid Waste Special Revenue Funds, as determined by the projects acquired or constructed by the debt proceeds. As previously noted, the Municipal Property Corporation issued the 2007 Utility Series. The water and wastewater system’s net revenues were pledged as collateral for this issue as additional parity obligations. Issue 2007 – Series Utilities Pledged Revenues Net Utility System Revenues Project(s) funded Water treatment plant/water distribution For the year ended June 30, 2008, the pledged revenues described above amounted to $74,056,847 for governmental activities and $42,828,931 for business-type activities. The bonded debt collateralized by such revenues is presented below. Total future pledged revenues are not determinable for comparison to total collateralized debt; however, for the year ended June 30, 2008, debt service for governmental activities totaled $12,241,867 and for business-type activities $16,630,564, or 29% and 39% of pledged revenues, respectively. Summary of Bonded Debt Ne t Un a m o r t iz e d In t e r e s t Ra t e Is s u e Da t e M a t u r it y Da t e 1 2 /1 /1 9 9 7 2012 A u t h o r iz e d a n d Is s u e d O u t s t a n d in g P r e m iu m / ( Is s u e C o s t s ) 8 ,0 8 5 ,0 0 0 6 ,4 2 0 ,0 0 0 ( 1 0 9 ,8 8 1 ) 2 2 ,4 5 5 ,0 0 0 6 ,4 2 0 ,0 0 0 ( 1 0 9 ,8 8 1 ) G e n e r a l O b lig a tio n B o n d s : 1 9 9 7 Re f u n d in g 4 .9 0 % Y u ma Mu n ic ip a l Pr o p e r ty Co r p o r a tio n B o n d s : 2 0 0 1 Is s u e 4 .9 4 % 3 /2 1 /2 0 0 1 2025 3 4 ,1 5 0 ,0 0 0 3 1 ,3 7 0 ,0 0 0 2 0 0 3 - S e r ie s A Re f u n d in g 4 .2 1 % 2 /1 8 /2 0 0 3 2015 1 4 ,6 4 0 ,0 0 0 1 0 ,5 6 5 ,0 0 0 - 2 0 0 3 - S e r ie s B Re f u n d in g 3 .6 7 % 2 /1 8 /2 0 0 3 2015 2 ,9 0 5 ,0 0 0 2 ,0 6 5 ,0 0 0 - 2 0 0 3 - S e r ie s C Re f u n d in g 2 .9 7 % 2 /1 8 /2 0 0 3 2010 1 ,4 4 5 ,0 0 0 6 5 5 ,0 0 0 2 0 0 3 - S e r ie s B A d d itio n 4 .1 8 % 2 /1 8 /2 0 0 3 2022 9 ,0 0 0 ,0 0 0 7 ,5 6 0 ,0 0 0 2 0 0 7 - S e r ie s B A d d itio n 4 .5 0 % 1 1 /2 0 /2 0 0 7 2027 3 0 ,7 8 5 ,0 0 0 3 0 ,7 8 5 ,0 0 0 2 0 0 7 - S e r ie s D 4 .5 0 % 1 1 /2 0 /2 0 0 7 2027 2 0 0 7 - S e r ie s Utilitie s 4 .4 0 % 1 1 /2 0 /2 0 0 7 2032 6 1 ,1 0 0 ,0 0 0 1 2 7 ,9 2 5 ,0 0 0 6 1 ,1 0 0 ,0 0 0 1 2 7 ,9 2 5 ,0 0 0 To ta l MPC B o n d s To ta l B o n d s A u th o r iz e d a n d Is s u e d 2 8 1 ,9 5 0 ,0 0 0 2 7 2 ,0 2 5 ,0 0 0 $ 3 0 4 ,4 0 5 ,0 0 0 $ 2 7 8 ,4 4 5 ,0 0 0 - ( 7 5 ,4 1 2 ) ( 1 8 2 ,8 3 6 ) 1 ,4 2 0 ,6 9 4 3 ,7 6 2 ,4 4 7 4 ,9 2 4 ,8 9 3 $ 4 ,8 1 5 ,0 1 2 Legal Debt Margin Under Arizona's Constitution, outstanding general obligation bonded debt for combined water, sewer, artificial light, parks, open space preserves, playgrounds and recreational facilities may not exceed 20% of a City's net secondary assessed valuation. Outstanding general obligation debt for all other purposes may not exceed 6% of a City's net secondary assessed valuation. The legal borrowing capacity of the City of Yuma at June 30, 2008 follows: Water, Etc. (20%) Secondary Assessed Valuation All Other (6%) $572,280,942 Legal Limit Outstanding G.O. Debt $ 114,456,188 6,420,000 $ 34,336,857 - Available Debt Margin $ 108,036,188 $ 34,336,857 47 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Annual Debt Service Requirements to Maturity BONDS AND IMPROVEMENT DISTRICTS July 1997 Refunding Bonds 1 Principal Interest Improvement District No. 67 Bonds Total Principal Interest Total 2008 1,170,000 312,105 1,482,105 770,000 176,305 946,305 2009 1,210,000 257,115 1,467,115 805,000 147,168 952,168 2010 1,275,000 196,615 1,471,615 840,000 116,736 956,736 2011 1,345,000 134,140 1,479,140 875,000 85,008 960,008 2012 1,420,000 69,580 1,489,580 910,000 51,985 961,985 2013 - - 950,000 17,575 $ - 6,420,000 $ 969,555 $ 7,389,555 $ 5,150,000 $ MPC Bonds 2001 Series 594,777 $ 967,575 5,744,777 MPC Bonds 2003 Series Improvement District No. 68 Bonds 2008 1,000,000 1,536,625 2,536,625 385,000 309,920 694,920 210,000 172,490 382,490 2009 1,040,000 1,494,125 2,534,125 395,000 298,370 693,370 220,000 162,620 382,620 2010 1,080,000 1,449,925 2,529,925 410,000 285,532 695,532 230,000 152,280 382,280 2011 1,130,000 1,404,025 2,534,025 420,000 272,207 692,207 245,000 141,470 386,470 2012 1,175,000 1,356,000 2,531,000 435,000 257,507 692,507 255,000 129,955 384,955 2013 1,235,000 1,297,250 2,532,250 450,000 241,847 691,847 265,000 117,970 382,970 2014 1,295,000 1,235,500 2,530,500 470,000 224,973 694,973 280,000 105,515 385,515 2015 1,355,000 1,170,750 2,525,750 490,000 207,347 697,347 290,000 92,355 382,355 2016 1,755,000 1,103,000 2,858,000 515,000 182,847 697,847 305,000 78,725 383,725 2017 1,840,000 1,015,250 2,855,250 535,000 157,098 692,098 320,000 64,390 384,390 2018 1,935,000 923,250 2,858,250 560,000 134,628 694,628 335,000 49,350 384,350 2019 2,030,000 826,500 2,856,500 585,000 110,828 695,828 350,000 33,605 383,605 2020 2,130,000 725,000 2,855,000 610,000 85,672 695,672 365,000 17,155 382,155 2021 2,240,000 618,500 2,858,500 635,000 58,833 693,833 - - - 2022 2,350,000 506,500 2,856,500 665,000 30,258 695,258 - - - 2023 2,470,000 389,000 2,859,000 - - - - - 2024 2,590,000 265,500 2,855,500 - - - - - - 2025 2,720,000 136,000 2,856,000 - - - - - - $ 31,370,000 $ 17,452,700 $ 48,822,700 $ MPC Bonds 2003 Refunding 1995A 7,560,000 $ - 2,857,867 $ 10,417,867 $ 3,670,000 $ 1,317,880 $ 4,987,880 MPC Bonds 2003 Refunding 1995B MPC Bonds 2003 Refunding 1995C 2008 1,095,000 477,703 1,572,703 230,000 75,985 305,985 210,000 20,763 230,763 2009 1,150,000 422,953 1,572,953 235,000 69,085 304,085 220,000 14,463 234,463 2010 1,210,000 365,453 1,575,453 245,000 61,448 306,448 225,000 7,313 232,313 2011 1,285,000 304,953 1,589,953 250,000 53,485 303,485 - - 2012 1,350,000 240,703 1,590,703 260,000 44,735 304,735 - - - 2013 1,425,000 173,203 1,598,203 270,000 35,375 305,375 - - - 2014 1,490,000 119,765 1,609,765 280,000 25,250 305,250 - - - 2015 1,560,000 62,400 1,622,400 295,000 14,750 309,750 - - - $ 10,565,000 $ 2,167,133 $ 12,732,133 $ 2,065,000 $ 380,113 $ 48 2,445,113 $ 655,000 $ 42,539 $ - 697,539 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 MPC Bonds 2007 Series B July 1 Interest Principal MPC Bonds 2007 Series D Total Principal MPC Bonds 2007 Series Utility Interest Total Principal Interest Total 2008 1,450,000 826,123 2,276,123 2,880,000 1,744,749 4,624,749 4,835,000 3,763,523 8,598,523 2009 1,025,000 1,273,220 2,298,220 2,030,000 2,719,725 4,749,725 2,960,000 5,925,138 8,885,138 2010 1,075,000 1,221,970 2,296,970 2,125,000 2,638,525 4,763,525 3,105,000 5,806,738 8,911,738 2011 1,125,000 1,168,220 2,293,220 2,230,000 2,553,525 4,783,525 3,260,000 5,682,538 8,942,538 2012 1,175,000 1,111,970 2,286,970 2,330,000 2,442,025 4,772,025 3,425,000 5,519,538 8,944,538 2013 1,230,000 1,064,970 2,294,970 2,435,000 2,348,825 4,783,825 3,585,000 5,382,538 8,967,538 2014 1,280,000 1,015,770 2,295,770 2,540,000 2,251,425 4,791,425 3,750,000 5,239,138 8,989,138 2015 1,335,000 964,570 2,299,570 2,655,000 2,149,825 4,804,825 3,920,000 5,089,138 9,009,138 2016 1,390,000 911,170 2,301,170 2,760,000 2,043,625 4,803,625 4,095,000 4,893,138 8,988,138 2017 1,445,000 855,570 2,300,570 2,870,000 1,905,625 4,775,625 4,270,000 4,688,388 8,958,388 2018 1,505,000 797,770 2,302,770 2,985,000 1,762,125 4,747,125 4,440,000 4,453,538 8,893,538 2019 1,565,000 737,570 2,302,570 3,110,000 1,612,875 4,722,875 4,620,000 4,231,538 8,851,538 2020 1,630,000 674,970 2,304,970 3,240,000 1,457,375 4,697,375 4,810,000 4,000,538 8,810,538 2021 1,700,000 606,510 2,306,510 3,375,000 1,323,725 4,698,725 5,015,000 3,802,125 8,817,125 2022 1,770,000 534,260 2,304,260 3,520,000 1,154,975 4,674,975 5,225,000 3,551,375 8,776,375 2023 1,850,000 458,150 2,308,150 3,670,000 978,975 4,648,975 5,450,000 3,290,125 8,740,125 2024 1,930,000 365,650 2,295,650 3,825,000 795,475 4,620,475 5,685,000 3,017,625 8,702,625 2025 2,010,000 281,212 2,291,212 3,995,000 604,225 4,599,225 5,930,000 2,733,375 8,663,375 2026 2,100,000 193,275 2,293,275 4,170,000 404,475 4,574,475 6,190,000 2,436,875 8,626,875 2027 2,195,000 98,775 2,293,775 4,355,000 195,975 4,550,975 6,460,000 2,127,375 8,587,375 2028 - - - - - - 6,745,000 1,844,750 8,589,750 2029 - - - - - - 7,050,000 1,507,500 8,557,500 2030 - - - - - - 7,365,000 1,155,000 8,520,000 2031 - - - - - - 7,695,000 786,750 8,481,750 2032 - - - - - - 8,040,000 402,000 8,442,000 30,785,000 $ 15,161,695 $ $ 45,946,695 $ 61,100,000 $ 33,088,074 $ CONTRACTS PAYABLE WIFA Loan #910043-03 WIFA Loan #920069-03 July 1 Principal Interest 94,188,074 $ 127,925,000 $ 91,330,304 $ 219,255,304 Total Principal WIFA Loan #920088-04 Interest Total 2008 440,173 277,327 717,500 2,014,606 1,269,284 3,283,890 2009 454,747 262,753 717,500 2,081,310 1,202,580 3,283,890 Principal 1,451,270 1,505,711 Interest Total 1,236,006 1,180,533 2,686,244 2,687,276 2010 469,804 247,696 717,500 2,150,222 1,133,668 3,283,890 1,562,205 1,122,979 2,685,184 2011 485,359 232,141 717,500 2,221,416 1,062,474 3,283,890 1,620,819 1,063,265 2,684,084 2012 501,429 216,071 717,500 2,294,967 988,923 3,283,890 1,681,632 1,001,311 2,682,943 2013 518,032 199,468 717,500 2,370,953 912,937 3,283,890 1,744,727 937,033 2,681,760 2014 535,184 182,316 717,500 2,449,455 834,435 3,283,890 1,810,189 870,342 2,680,532 2015 552,904 164,596 717,500 2,530,557 753,333 3,283,890 1,878,108 801,150 2,679,258 2016 571,210 146,290 717,500 2,614,343 669,547 3,283,890 1,948,574 729,361 2,677,936 2017 590,123 127,377 717,500 2,700,904 582,986 3,283,890 2,021,685 654,879 2,676,564 2018 609,662 107,838 717,500 2,790,331 493,559 3,283,890 2,097,539 577,603 2,675,141 2019 629,848 87,652 717,500 2,882,719 401,171 3,283,890 2,176,238 497,427 2,673,665 2020 650,702 66,798 717,500 2,978,166 305,724 3,283,890 2,257,891 414,242 2,672,133 2021 672,247 45,253 717,500 3,076,773 207,117 3,283,890 2,342,607 327,937 2,670,544 2022 694,505 22,995 717,500 3,178,645 105,245 3,283,890 2,430,501 238,393 2,668,895 - 2,521,694 145,490 2,667,184 2,616,825 49,092 2023 - 2024 $ 8,375,929 $ 2,386,572 $ - - - - - - 10,762,501 $ 38,335,366 $ 10,922,983 $ 49 49,258,349 $ 33,668,216 $ 11,847,041 $ 2,665,916 45,515,257 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 H. Interfund Transfers Transfers Out Transfers In Governmental funds - major funds: General Fund 10,056 Solid Waste 1,939,535 Road Tax Mall Maintenance 157,139 Debt Service 2,901,201 Capital Projects 447,553 HURF Road Tax General Fund Capital Projects General Fund Capital Projects 50,000 440,200 10,056 31,436 Capital Projects 276 Capital Projects 177,978 General Fund HURF Road Tax Public Safety Tax 5,752,586 Solid Waste 4,656,227 Desert Hills G.C. 3,706,574 Wastewater Water Capital Projects General Fund 122,233 HURF Road Tax 50,000 Community Redevelopment 276 Grants 177,978 LTAF Public Safety Tax Two Percent Tax Recreation Complex Nonmajor funds: Solid Waste 385,927 General Fund 4,277,692 Recreation Complex 1,347,160 Two Percent Tax Mall Maintenance 21,034 General Fund 23,473 1,500,000 440,200 1,079,169 230,725 2,901,201 101,681 4,656,227 4,277,692 21,034 230,725 33,449 62,521 447,553 260,190 5,721,150 122,233 3,706,574 385,927 1,347,160 1,079,169 23,473 Community Redev Two Percent Tax Debt Service HURF Debt Service Capital Projects Road Tax Grants Capital Projects Debt Service Capital Projects Community Redevelopment Capital Projects Capital Projects General Fund HURF Community Redev LTAF Public Safety Tax Capital Projects Debt Service Capital Projects Debt Service Capital Projects Recreation Complex General Fund Capital Projects Desert Hill G.C. Solid Waste Recreation Complex Two Percent Tax Total Governmental Activities Desert Hills G.C. Water Wastewater Debt Service Debt Service Debt Service 101,681 260,190 29,588,609 Total Governmental Activities Enterprise funds: Desert Hills G.C. 230,725 Two Percent Tax 62,521 33,449 Total Enterprise Funds 326,695 Total Transfers Out 29,915,304 1,939,535 1,500,000 157,139 29,684,579 230,725 230,725 Total Transfers In 29,915,304 The majority of the transfers listed above are for capital projects expenditures or for debt service requirements and are recognizable by the fund to which the transfer is made. This includes Enterprise Fund transfers to debt service as the majority of the related bond debt service is governmental in nature and is recorded in the Debt Service Fund rather than within the Enterprise Funds. As for the remaining transfers, they include operating subsidies from the General Fund to Solid Waste Fund ($1,939,535) and Mall Maintenance ($157,139); and from the Two Percent Tax Fund to the General Fund ($440,200 per a riverfront development agreement), to the Recreation Complex Fund ($1,500,000) and Desert Hills Golf Course ($230,725). Interfund activity is eliminated within the governmental activities column of the Statement of Activities. Only transfers between governmental and business-type activities appear on that statement. The net transfers of $95,970 are for debt service. 50 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 I. Interfund Receivables and Payables Interfund balances at June 30, 2008, follow: Interfund Receivable Major Funds Interfund Payable Major Governmental Funds: City Road Tax Fund Community Redevelopment Fund Grants Fund Nonmajor Governmental Funds: Solid Waste Fund Internal Service Funds: Equipment Maintenance Workers Compensation Total Receivable Capital Projects General $ 83,227 - $ 68,763 $ 495,603 270,087 917,680 576 4,945 328,424 - $ 333,945 Total $ 576 88,172 328,424 68,763 495,603 270,087 $ 1,251,625 Because they serve primarily governmental funds, the interfund activity noted above in the Internal Service Equipment Maintenance and Workers Compensation are combined within the governmental activities for government-wide reporting. As such, the interfund activity is eliminated in the governmental activities column of the Statement of Net Assets. The internal balances amount appearing on that statement, $1,024,979, represents net balances allocated to business-type activities for consolidation of internal service funds net profits. J. Fund Equity Unreserved Fund Balances – Designations - Uncompleted Projects - $69,172,489 is the uncompleted portion of capital projects for which Council has authorized the funding from current year available resources. Expenditures for these projects are rebudgeted in the subsequent fiscal year since unexpended appropriations lapse at year-end. Subsequent Years’ Expenditures - $1,674,336 includes sales tax rebates of $733,867, riverfront redevelopment of $440,200, capital projects of $500,000 and the remaining $269 is for public/educational/government (PEG) facility for the local cable system. Future Community Improvements – In General Fund, $183,986 in Community Investment Trust represents special projects in subsequent years as designated by City Council, and $50,000 in Special Revenue Funds is a contingency account, designated by City Council, for the Yuma Civic Center. K. 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; job-related illnesses and injuries to employees; and natural disasters. The City purchases commercial insurance for Property Insurance, Public Employee Fidelity Bonds, Crime Insurance, Excess Workers Compensation, and Miscellaneous Insurance (i.e. surety bonds, special event insurance as needed, and fine arts coverage.) The City retains all the risk not covered by commercial carriers and has effectively managed risk through various employee education and prevention programs. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The City uses two Internal Service Funds, Insurance Reserve Fund and Workers Compensation Fund, to account for the financing of its risk of loss relating to claims. Charges assessed to the funds are based on historical claims, exposure to risk, and funding necessary reserves. Annually, the City estimates the liabilities for unpaid claims using a historical cost information method. Claims and expenses are recognized when it is probable that a loss has been incurred, and the amount of the loss can be reasonably estimated. Claims accounted for include, reported and paid claims, reported but unpaid claims, and incurred but not reported (IBNR) claims. The funds’ claims liabilities are presented below. 51 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Insurance Reserve Fund Fiscal Year 2007-08 2006-07 2005-06 Beginning of Year Liability $ Claims and Changes In Estimates 34,660 $ 29,331 34,036 Workers Compensation Fund End of Year Liability Claim Payments 22,527 $ 118,661 205,735 26,840 113,332 210,440 $ 30,347 34,660 29,331 Beginning of Year Liability Claims and Changes In Estimates $ 818,060 663,933 464,508 $ 4,433 761,715 892,640 Claim Payments End of Year Liability $ 186,508 607,588 693,215 $ 635,985 818,060 663,933 L. Construction Commitments The City has active construction projects as of June 30, 2008. At year-end the government’s commitments with contractors for specific projects are as follows: Construction Commitments Original Contract Public Safety Parks & Recreation Environmental Health Streets Water System Wastewater Spent to Date 3,733,184 1,583,594 778,834 29,427,428 36,367,228 17,291,723 $ 89,181,991 Remaining Commitment 3,196,288 1,292,563 711,148 16,616,306 32,862,165 14,381,687 $ 69,060,157 536,896 291,031 67,686 12,811,122 3,505,063 2,910,036 $ 20,121,834 IV. CONTINGENT LIABILITIES A. Pending Litigation The City is contingently liable in respect to lawsuits and other claims incidental to the ordinary course of its operations. It is the opinion of the City management, based on the advice of the City Attorney, that such matters will not have a material adverse effect on the City's financial position at June 30, 2008. B. Compliance The City participates in federally-funded and state-funded programs administered by various government agencies. The programs included in these financial statements may be subject to program compliance and/or financial monitoring by the granting agency or its representatives. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. 52 REQUIRED SUPPLEMENTARY INFORMATION 53 Schedule of Funding Progress Public Safety Personnel Retirement System Unfunded POLICE 2005 2006 2007 FIRE 2005 2006 2007 Actuarial Funding Actual Value Accrued Liability of Plan Assets Liability (Excess) $ 39,130,092 39,606,532 38,668,154 29,151,838 28,456,219 26,853,367 $ Annual Liability as Funded Covered Percentage Ratio Payroll of Payroll 43,029,465 $ 47,038,163 51,924,584 3,899,373 7,431,631 13,256,430 90.9% $ 7,550,449 84.2% 8,334,721 74.5% 9,149,431 51.6% 89.2% 144.9% 38,122,098 39,701,588 43,029,776 8,794,173 11,245,339 16,176,409 76.8% 71.7% 62.4% 191.6% 216.0% 287.1% 54 4,682,644 5,206,722 5,634,967 City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes: Property Tax - Primary Property Tax - Delinquent City Sales Tax Public Enterprise In-Lieu Franchise Tax Total Taxes Licenses: Business Licenses Liquor Licenses Building Permits Alcohol Permits Total Licenses Intergovernmental: Sales Tax - State State Revenue Sharing Auto Lieu Tax Other Governmental Charges Total Intergovernmental Charges for Services: Building Inspection Fees Recreation Fees Police Services Other Charges Total Charges for Services Fines and Forfeitures: City Court Fines Total Fines and Forfeitures Use of Money and Property: Interest Rental Receipts Total Use of Money and Property Miscellaneous Sales of Surplus Property Other Total Miscellaneous Total Revenues Transfers In Variance with Final Budget Positive (Negative) $ (522,174) Original $ 20,724,306 Final $ 20,724,306 Actual Amounts $ 20,202,132 8,064,476 100,000 22,161,017 242,000 2,675,000 33,242,493 8,064,476 100,000 22,161,017 242,000 2,675,000 33,242,493 7,890,159 136,702 20,479,641 242,000 2,893,077 31,641,579 (174,317) 36,702 (1,681,376) 218,077 (1,600,914) 300,000 37,200 3,189,000 8,500 3,534,700 300,000 37,200 3,189,000 8,500 3,534,700 332,122 34,700 1,691,451 9,230 2,067,503 32,122 (2,500) (1,497,549) 730 (1,467,197) 9,041,117 12,503,023 3,560,000 162,747 25,266,887 9,041,117 12,503,023 3,560,000 112,747 25,216,887 8,183,395 12,518,215 3,518,863 133,560 24,354,033 (857,722) 15,192 (41,137) 20,813 (862,854) 883,500 465,300 732,000 376,988 2,457,788 883,500 465,300 732,000 376,988 2,457,788 709,598 546,680 764,397 1,115,468 3,136,143 (173,902) 81,380 32,397 738,480 678,355 852,000 852,000 852,000 852,000 1,143,006 1,143,006 291,006 291,006 787,500 141,200 928,700 787,500 141,200 928,700 1,021,862 206,137 1,227,999 234,362 64,937 299,299 13,073 195,000 208,073 66,490,641 220,100 13,073 245,000 258,073 66,490,641 220,100 87,435,047 28,772 102,898 131,670 63,701,933 490,200 84,394,265 87,435,047 Amounts Available for Appropriation 15,699 (142,102) (126,403) (2,788,708) 270,100 (3,040,782) Continued on next page See accompanying notes to this schedule 55 City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Original Charges to Appropriations (outflows): General Government: Mayor and Council Elections City Administrator Strategic Communications Economic Development General Government City Clerk Community Investment Trust City Attorney City Prosecutor Finance-Administration Accounting Customer Services Information Technology Services Purchasing Human Resources Facilities Maintenance Intragovernmental Charges Total General Government Expenditures Less Capital Outlay General Government Operating Expenditures Public Safety: Police Administration - Field Operations Police Reserve Unit Police Support Services Police Communication Center Fire Administration Fire Training Fire Suppression Community Risk Reduction Fire Special Operations Fire Emergency Medical Services Fire Emergency Management Municipal Court Total Public Safety Expenditures Less Capital Outlay Public Safety Operating Expenditures Final Actual Amounts Variance with Final Budget Positive (Negative) 388,285 150,100 1,337,015 845,054 142,455 3,245,554 320,361 1,365,999 254,084 314,565 770,761 463,869 3,354,517 634,797 966,179 937,590 (3,435,922) 12,055,263 1,155,616 10,899,647 388,285 150,100 1,337,015 845,054 142,455 2,701,473 320,361 1,365,999 254,084 314,565 770,761 463,869 3,656,067 634,797 966,179 937,590 (3,435,922) 11,812,732 984,769 10,827,963 344,049 148,946 1,323,985 805,055 129,839 1,787,961 274,958 6,294 1,327,854 242,639 316,733 712,545 435,554 3,376,303 585,737 714,631 924,479 (3,435,922) 10,021,640 298,960 9,722,680 44,236 1,154 13,030 39,999 12,616 913,512 45,403 (6,294) 38,145 11,445 (2,168) 58,216 28,315 279,764 49,060 251,548 13,111 1,791,092 685,809 1,105,283 18,831,302 5,750 2,875,090 2,319,046 566,133 587,126 9,561,880 914,461 147,124 161,163 103,346 1,754,721 37,827,142 496,945 37,330,197 18,815,594 5,750 2,929,858 2,355,195 564,533 587,126 9,564,870 950,165 161,624 235,163 133,346 1,761,449 38,064,673 661,053 37,403,620 17,840,504 665 2,560,587 2,006,448 553,960 526,808 9,364,186 898,136 118,788 228,369 159,213 1,655,997 35,913,661 294,203 35,619,458 975,090 5,085 369,271 348,747 10,573 60,318 200,684 52,029 42,836 6,794 (25,867) 105,452 2,151,012 366,850 1,784,162 Continued on next page See accompanying notes to this schedule 56 City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Original Parks, Recreation and Culture: Parks and Recreation Administration Parks Maintenance Parks Development Recreation Administration Senior Adult Activities Adult Activities Youth Activities Aquatics Yuma Readiness Center Yuma Art Center Intragovernmental Charges Total Parks, Recreation and Culture Less Capital Outlay Parks, Recreation and Culture Operating Expenditures Environmental Health and Protection: Environmental Management Intragovernmental Charges Total Environmental Health and Protection Less Capital Outlay Environmental Health and Protection Operating Expenditures Community Design and Development: Community Development Administration Development Engineering Planning and Neighborhood Services Heritage Area Development Total Community Design and Development Less Capital Outlay Community Design and Development Operating Expenditures Total Operating Expenditures Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Final Actual Amounts Variance with Final Budget Positive (Negative) 757,589 5,501,802 385,333 722,620 207,308 268,112 325,513 769,801 200,122 915,707 (913,828) 9,140,079 586,595 757,589 5,501,802 385,333 722,320 207,608 268,112 325,513 769,801 200,122 915,707 (913,828) 9,140,079 588,595 710,250 5,771,376 365,081 693,417 174,672 278,629 237,618 783,779 151,557 1,024,506 (913,828) 9,277,057 725,470 8,553,484 8,551,484 8,551,587 1,117,762 (138,430) 979,332 25,000 1,122,762 (138,430) 984,332 30,000 929,532 (138,430) 791,102 - 193,230 193,230 30,000 954,332 954,332 791,102 163,230 382,374 446,370 3,240,497 521,214 4,590,455 3,960 379,174 446,370 3,243,697 521,214 4,590,455 17,260 370,723 357,285 2,847,084 475,421 4,050,513 14,945 8,451 89,085 396,613 45,793 539,942 2,315 4,586,495 62,324,155 2,268,116 64,592,271 6,815,213 4,573,195 62,310,594 2,281,677 64,592,271 6,815,213 71,407,484 4,035,568 58,720,395 1,333,578 60,053,973 5,455,484 65,509,457 537,627 3,590,199 948,099 4,538,298 1,359,729 5,898,027 71,407,484 47,339 (269,574) 20,252 28,903 32,936 (10,517) 87,895 (13,978) 48,565 (108,799) (136,978) (136,875) (103) $ 16,027,563 $ 16,027,563 $ 18,884,808 $ 2,857,245 Concluded See accompanying notes to this schedule 57 City of Yuma, Arizona Budgetary Comparison Schedule Highway User Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental State Gasoline Tax Use of Money and Property Interest Miscellaneous Engeneering Oversight Fees Other Total Revenues Transfers In Budget Original Final $ 5,206,283 $ 5,206,283 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Public Safety Traffic Signals, Signs, and Striping Streets Engineering Street Maintenance Street Lighting Street Sweeping Storm Drain Maintenance Curbs, Gutters, and Sidewalks Environmental Health Lot Cleaning Capital Outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 8,372,364 8,372,364 8,144,889 (227,475) 150,000 150,000 144,642 (5,358) 50,000 30,000 8,602,364 13,808,647 50,000 30,000 8,602,364 13,808,647 81,313 12,819 8,383,663 276 12,627,001 31,313 (17,181) (218,701) 276 (1,181,646) 1,521,553 1,663,799 1,523,920 139,879 1,188,996 3,226,701 609,003 620,606 969,502 478,148 1,188,996 3,226,701 609,003 620,606 969,502 478,148 1,660,231 3,294,901 775,253 627,259 993,037 475,855 (471,235) (68,200) (166,250) (6,653) (23,535) 2,293 139,936 303,650 139,936 161,404 9,058,095 3,830,528 12,888,623 24,573 228,969 9,603,998 361,871 9,965,869 115,363 (67,565) (545,903) 3,468,657 2,922,754 9,058,095 3,830,528 12,888,623 Total Expenditures Transfers Out $ Actual Amounts $ 4,243,062 Variance with Final Budget Positive (Negative) $ (963,221) 920,024 See accompanying notes to this schedule 58 $ 920,024 $ 2,661,132 $ 1,741,108 City of Yuma, Arizona Budgetary Comparison Schedule City Road Tax Fund For the Year Ended June 30, 2008 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes Special Road Sales Tax Use of Money and Property Interest Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Streets Street Maintenance Retention Basin Maintenance Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Positive (Negative) $ (3,817,718) Original $ 6,985,321 Final $ 6,985,321 Actual Amounts $ 3,167,603 11,078,620 11,078,620 10,238,080 (840,540) 245,000 245,000 182,761 (62,239) 100,000 11,423,620 18,408,941 100,000 11,423,620 18,408,941 197,729 10,618,570 41,492 13,827,665 97,729 (805,050) 41,492 (4,581,276) 258,693 895,827 1,154,520 15,149,700 16,304,220 592,166 562,354 73,500 1,228,020 15,149,700 16,377,720 550,232 535,788 82,187 1,168,207 10,408,813 11,577,020 41,934 26,566 (8,687) 59,813 4,740,887 4,800,700 $ 2,104,721 $ 2,031,221 $ 2,250,645 See accompanying notes to this schedule 59 $ 219,424 City of Yuma, Arizona Budgetary Comparison Schedule Grants Fund For the Year Ended June 30, 2008 Budget Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government State Government Budget Authority Reserve Use of Money and Property Interest Contributions/Donations Total Revenues Original $ - Amounts Available for Appropriation Charges to Appropriations (outflows): Current: General Government Public Safety Parks, Recreation and Culture Environmental Health and Protection Community Design & Development Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Final $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 2,966,211 173,450 21,356,478 2,966,211 173,450 21,356,478 2,626,483 2,213,256 - (339,728) 2,039,806 (21,356,478) 144,360 24,640,499 24,640,499 144,360 24,640,499 24,640,499 3,627 23,078 4,866,444 4,866,444 3,627 (121,282) (19,774,055) (19,774,055) 250,000 3,149,800 26,500 859,199 6,000 1,817,000 6,108,499 18,532,000 24,640,499 250,000 3,048,304 26,500 859,199 6,000 1,918,496 6,108,499 18,532,000 24,640,499 688,116 16,133 204,853 250,768 1,159,870 3,706,574 4,866,444 250,000 2,360,188 10,367 654,346 6,000 1,667,728 4,948,629 14,825,426 19,774,055 $ - See accompanying notes to this schedule 60 $ - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Community Redevelopment Fund For the Year Ended June 30, 2008 Actual Amounts Budget Original Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government State Government Use of Money and Property Rental Receipts Miscellaneous Loan Repayments Other $ $ 2,035,496 353,000 Charges to Appropriations (outflows): Current: Community Design and Development Capital Outlay Debt Service Principal Interest and Fiscal Agent Fees Total Expenditures Transfers Out Total Charges to Appropriations $ $ - $ 1,097,282 166,787 - 275,781 2,664,277 - Amounts Available for Appropriation - 2,035,496 353,000 - Total Revenues Transfers In Budgetary Fund Balance, June 30 - Final Variance with Final Budget Positive (Negative) - (938,214) (186,213) 25,192 25,192 2,664,277 275,781 2,664,277 2,664,277 26,918 90,696 1,406,875 177,978 1,584,853 26,918 (185,085) (1,257,402) 177,978 (1,079,424) 2,360,394 3,660 2,360,394 3,660 1,338,645 4,752 1,021,749 (1,092) 117,000 2,223 2,483,277 181,000 2,664,277 117,000 2,223 2,483,277 181,000 2,664,277 117,000 2,223 1,462,620 122,233 1,584,853 - See accompanying notes to this schedule 61 $ - $ - 1,020,657 58,767 1,079,424 $ - City of Yuma, Arizona NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2008 A. Budgetary Reporting and Budgetary Basis of Accounting Budgets are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP) with the exception of the Enterprise Funds and for Internal Service Funds for which budgets are adopted. As such, reconciliations between budgetary schedules and financial statements are not necessary for governmental funds. For Enterprise Funds and Internal Service Funds, expenditures related to debt service and to capital acquisition are budgeted in the same manner as governmental funds. Depreciation is not budgeted. Reconciliations from budgetary schedules and financial statements of these funds are presented on the face of the respective budgetary statements. B. Excess of Expenditures Over Appropriations The City’s expenditures exceeded appropriations in three funds. Higher utility and fuel costs combined with a change in allocation of capital project labor costs caused the Highway User Revenue Fund to exceed budgeted expenditures. Unbudgeted interest and fiscal agent fees related to the new issuances of Series B and Series D bonds caused expenditures within the Debt Service Fund to exceed appropriations by $6,912,606 because unbudgeted debt service payments were made in the year of issue. Expenditures exceeded appropriations by $663,466 in the Equipment Maintenance Internal Service Fund also because of rising fuel costs. 62 OTHER SUPPLEMENTARY INFORMATION 63 64 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special Revenue Funds account for the proceeds of special revenue sources that are used to finance projects or activities as required by law or contractual agreements. Local Transportation Assistance To record the receipts and uses of monies originating from Arizona Lottery sales. These monies are restricted to transportation uses. Public Safety Tax To account for the two-tenths percent sales tax designated for public safety and criminal justice facilities and equipment. Solid Waste To record the financial activities of the city-owned and operated residential garbage collection service. Expenditures in excess of fees are financed by a transfer from the General Fund. Recreation Complex Baseball Complex. To record the financial activities of the Civic Center and Two Percent Tax To record the financial activities of the Two Percent Special Revenue Excise Tax on hotel, motel, restaurant and bar sales. This tax can finance the operations of the Civic and Convention Center, Baseball Complex, Golf Courses, the Yuma Crossing Area and Convention and Tourism. Yuma Mall Maintenance To record the special maintenance levy for the Yuma Downtown Mall District. The assessment supports cleaning, maintenance, landscaping and utility costs of common areas. Costs in excess of the assessment are financed by a transfer from the General Fund. 65 City of Yuma, Arizona Combining Balance Sheet Nonmajor Governmental Funds June 30, 2008 Special Revenue Assets Cash and Investments Receivables (Net of Allowances for Uncollectibles): Accounts Receivable Intergovernmental Accrued Interest Inventory, at cost Prepaid Items Total Assets Liabilities Liabilities: Accounts Payable Accrued Payroll and Related Taxes Due to Other Funds Unearned Revenue Total Liabilities Local Transportation Assistance $ 35,934 Solid Waste Recreation Complex $ 404,597 $ 7 $ 1,614,364 $ 1,886 37,820 $ 317,579 19,811 741,987 275,121 35 $ 275,163 5,259 10,089 11,139 2,425 $ 1,643,276 $ 144 $ 9,038 $ 141,145 $ 9,038 65,255 68,763 275,163 63,292 67,561 161,591 144 Fund Balances Reserved for: Inventory Prepaid Items Unreserved: Designated For Future Community Improvements Undesignated Total Fund Balance Total Liabilities and Fund Balance Public Safety Tax $ 30,738 - - - 11,139 2,425 37,676 37,676 732,949 732,949 - 1,468,121 1,481,685 37,820 66 $ 741,987 $ 275,163 $ 1,643,276 Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 1,636,710 $ 3,695,170 $ 3,558 7,463 $ 1,644,173 $ 546 5,480 9,584 $ 280,926 323,094 39,249 11,139 2,425 4,352,003 $ $ 3,293 $ 187,130 2,772 2,772 6,291 9,584 - 50,000 1,591,401 1,641,401 $ 1,644,173 $ 134,838 68,763 67,561 458,292 - 11,139 2,425 - 50,000 3,830,147 3,893,711 9,584 $ 4,352,003 67 City of Yuma, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2008 Special Revenue Public Safety Solid Tax Waste Local Transportation Assistance Revenues: Taxes Intergovernmental Charges for Services Use of Money and Property Contributions/Donations Miscellaneous Total Revenues $ Expenditures: Current: Public Safety Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Outlay Total Expenditures Revenues Over/(Under) Expenditures Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1 Fund Balances, June 30 $ Recreation Complex $ 4,093,839 $ $ 423,058 1,806,041 12,240 126,653 42,246 14,627 477,544 4,220,492 1,820,668 - 776,718 10,040 786,758 - 42,284 - - - 3,736,238 90,333 90,333 578,351 620,635 30,076 3,766,314 46,718 2,093,789 387,211 3,599,857 (1,945,646) (1,307,031) (385,927) (5,624,852) 1,939,535 (21,034) 1,500,000 (23,473) (385,927) (5,624,852) 1,918,501 1,476,527 1,284 (2,024,995) (27,145) 36,392 2,757,944 27,145 37,676 $ 68 732,949 $ - 2,047,071 - 169,496 1,312,189 $ 1,481,685 Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 4,424,358 $ 39,489 528 4,464,375 $ 105,394 11,937 117,331 8,623,591 423,058 1,806,041 955,100 42,246 37,132 11,887,168 931,908 - 42,284 2,978,979 - - 3,736,238 931,908 261,757 12,713 274,470 352,090 667,858 7,777,449 3,532,467 (157,139) 4,109,719 (3,250,094) 157,139 - 3,596,674 (9,305,380) (3,250,094) 157,139 (5,708,706) 282,373 - (1,598,987) 1,359,028 - 5,492,698 $ 1,641,401 $ - $ 3,893,711 69 City of Yuma, Arizona Budgetary Comparison Schedule Debt Service Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Special Assessments: Principal Payments Use of Money and Property: Interest Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Debt Service: Bond Principal Bond Interest Fiscal Agent Fees Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 501,908 $ 501,908 Actual Amounts $ 501,908 Variance with Final Budget Positive (Negative) $ - 710,000 710,000 914,000 204,000 231,065 941,065 231,065 941,065 408,893 1,322,893 177,828 381,828 5,723,303 7,166,276 5,723,303 7,166,276 12,284,530 14,109,331 6,561,227 6,943,055 3,865,000 2,802,543 6,667,543 6,667,543 3,865,000 2,802,543 6,667,543 6,667,543 8,195,000 5,373,414 11,735 13,580,149 13,580,149 (4,330,000) (2,570,871) (11,735) (6,912,606) (6,912,606) 498,733 $ 529,182 $ 498,733 70 $ $ 30,449 City of Yuma, Arizona Budgetary Comparison Schedule Capital Projects Fund For the Year Ended June 30, 2008 Budget Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Arizona Department of Transportation Charges for Services Developer Charges Use of Money and Property Rents Interest Miscellaneous Total Revenues Issuance of Long-Term Debt Transfers In Amounts Available for Appropriation Original $ 926,140 - $ Final 926,140 - Actual Amounts $ 926,138 Variance with Final Budget Positive (Negative) $ (2) 211,500 211,500 7,365,160 7,365,160 6,657,214 (707,946) 469,500 135,000 17,489,000 25,458,660 76,237,500 50,520,300 153,142,600 469,500 135,000 17,489,000 25,458,660 76,237,500 50,520,300 153,142,600 543,336 1,866,476 54,586 9,333,112 93,685,707 13,093,429 117,038,386 73,836 1,731,476 (17,434,414) (16,125,548) 17,448,207 (37,426,871) (36,104,214) 23,806,000 12,517,000 91,660,000 17,075,800 6,766,500 15,361,346 15,717,000 91,400,300 22,070,654 6,762,000 1,543,626 8,090,265 32,419,069 6,212,370 315,382 13,817,720 7,626,735 58,981,231 15,858,284 6,446,618 497,691 49,078,403 228,254 49,306,657 (497,691) 102,232,897 (610,561) 101,622,336 Charges to Appropriations (outflows): Capital Outlay: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Safety Debt Service: Fiscal Agent Fees Total Expenditures Transfers Out Total Charges to Appropriations 151,825,300 151,311,300 (382,307) (382,307) 151,442,993 150,928,993 Budgetary Fund Balance, June 30 $ 1,699,607 71 $ 2,213,607 $ 67,731,729 $ 65,518,122 City of Yuma, Arizona Budgetary Comparison Schedule Local Transportation Assistance Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental State Lottery Distribution Use of Money and Property Interest Contributions/Donations Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Community Design and Development Outside Agencies - Cultural Activities Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 20,000 $ 20,000 Actual Amounts $ 36,392 Variance with Final Budget Positive (Negative) $ 16,392 1 423,057 423,057 423,058 8,000 42,306 473,363 493,363 8,000 42,306 473,363 493,363 12,240 42,246 477,544 513,936 4,240 (60) 4,181 20,573 90,973 90,973 382,390 473,363 90,973 90,973 382,390 473,363 90,333 90,333 385,927 476,260 640 640 (3,537) (2,897) $ 20,000 $ 20,000 $ 37,676 72 $ 17,676 City of Yuma, Arizona Budgetary Comparison Schedule Public Safety Tax Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Public Safety Sales Tax Use of Money and Property Interest Total Revenues Amounts Available for Appropriation Budget Original Final $ 6,841,240 $ 6,841,240 Actual Amounts $ 2,757,944 Variance with Final Budget Positive (Negative) $ (4,083,296) 4,429,938 4,429,938 4,093,839 (336,099) 100,000 4,529,938 11,371,178 100,000 4,529,938 11,371,178 126,653 4,220,492 6,978,436 26,653 (309,446) (4,392,742) 945,000 945,000 45,000 956,491 1,001,491 35,847 6,437 578,351 620,635 (35,847) 38,563 378,140 380,856 9,961,074 10,906,074 9,961,074 10,962,565 5,624,852 6,245,487 $ $ Charges to Appropriations (outflows): Current: Public Safety Police Support Services Fire Support Services Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 465,104 73 408,613 $ 732,949 4,336,222 4,717,078 $ 324,336 City of Yuma, Arizona Budgetary Comparison Schedule Solid Waste Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Charges for Service Collection Fees Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Environmental Health and Protection Residential Services Uncontained Waste Recycling Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ $ - Actual Amounts $ 27,145 Variance with Final Budget Positive (Negative) $ 27,145 1,932,200 1,932,200 1,806,041 (126,159) 5,000 1,937,200 1,959,277 3,896,477 5,000 1,937,200 1,959,277 3,896,477 14,627 1,820,668 1,939,535 3,787,348 9,627 (116,532) (19,742) (109,129) 3,396,514 404,331 49,611 25,000 3,875,456 21,021 3,896,477 3,396,514 404,331 49,611 25,000 3,875,456 21,021 3,896,477 3,309,141 385,383 41,714 30,076 3,766,314 21,034 3,787,348 87,373 18,948 7,897 (5,076) 109,142 (13) 109,129 $ - $ 74 - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Recreation Complex Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Use of Money and Property Rents and Concessions Interest Miscellaneous Other Total Revenues Transfers In Budget Original Final $ 1,306,419 $ 1,306,419 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Civic and Convention Center Baseball Complex Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Actual Amounts $ 1,312,189 Variance with Final Budget Positive (Negative) $ 5,770 616,198 93,500 616,198 93,500 696,524 80,194 80,326 (13,306) 10,080 719,778 1,500,000 3,526,197 10,080 719,778 1,500,000 3,526,197 10,040 786,758 1,500,000 3,598,947 (40) 66,980 72,750 1,336,670 682,495 90,395 2,109,560 750,000 2,859,560 1,336,670 682,495 90,395 2,109,560 750,000 2,859,560 1,324,071 723,000 46,718 2,093,789 23,473 2,117,262 12,599 (40,505) 43,677 15,771 726,527 742,298 666,637 $ 1,481,685 666,637 75 $ $ 815,048 City of Yuma, Arizona Budgetary Comparison Schedule Two Percent Tax Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Two PercentTax Use of Money and Property Interest Miscellaneous Other Total Revenues Budget Original Final $ 1,075,461 $ 1,075,461 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Administration Outside Agencies Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Actual Amounts $ 1,359,028 Variance with Final Budget Positive (Negative) $ 283,567 4,486,328 4,486,328 4,424,358 (61,970) 74,000 74,000 39,489 (34,511) 4,560,328 5,635,789 4,560,328 5,635,789 528 4,464,375 5,823,403 528 (95,953) 187,614 31,908 925,000 956,908 4,010,863 4,967,771 31,908 925,000 956,908 4,010,863 4,967,771 31,908 900,000 931,908 3,250,094 4,182,002 25,000 25,000 760,769 785,769 668,018 $ 1,641,401 668,018 76 $ $ 973,383 City of Yuma, Arizona Budgetary Comparison Schedule Yuma Mall Maintenance Special Revenue Fund For the Year Ended June 30, 2008 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Mall Assessments Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Community Design and Development Mall Maintenance Capital Outlay Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 100,000 100,000 105,394 5,394 15,000 115,000 179,710 294,710 15,000 115,000 179,710 294,710 11,937 117,331 157,139 274,470 (3,063) 2,331 (22,571) (20,240) 276,710 18,000 294,710 294,710 276,710 18,000 294,710 294,710 261,757 12,713 274,470 274,470 14,953 5,287 20,240 20,240 $ - $ 77 - $ - $ - . 78 NONMAJOR ENTERPRISE FUNDS Enterprise funds are used to account for activities that are financed and operated in a manner similar to private businesses. The intent of the City Council is that the costs of providing the goods or services be recovered primarily through user charges. Enterprise funds are designed so that creditors, legislators and the general public can evaluate the performance of the municipal enterprise on the same basis as commercial enterprises in the same industry. Desert Hills Golf Course To account for the financial activity of the operation of the Desert Hills Municipal Golf Course. Arroyo Dunes Golf Course To account for the financial activity of the operation of the Arroyo Dunes Municipal Golf Course. 79 City of Yuma, Arizona Combining Statement of Net Assets Nonmajor Proprietary Funds June 30, 2008 Total Nonmajor Proprietary Funds Enterprise Funds Assets Current Assets: Cash and Investments Receivables, Net of Allowance for Uncollectibles: Accounts Receivable Intergovernmental Accrued Interest Inventory, at cost Prepaid Expenses Total Current Assets Noncurrent Assets: Capital Assets: Buildings Improvements Other than Buildings Equipment Gross Capital Assets Less Accumulated Depreciation Captial Assets Net of Depreciation Total Noncurrent Assets Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Payroll and Related Taxes Unearned Revenue Total Current Liabilities Payable from Current Assets Total Liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total Net Assets 80 Desert Hills Golf Course Arroyo Dunes Golf Course $ $ 201,455 209,475 $ 410,930 4,467 458 743 88,689 8,158 303,970 1,075 705 211,255 4,467 458 1,818 89,394 8,158 515,225 3,102,865 2,370,096 257,033 645,571 21,866 3,102,865 3,015,667 278,899 5,729,994 (3,108,988) 667,437 (504,417) 6,397,431 (3,613,405) 2,621,006 2,621,006 2,924,976 163,020 163,020 374,275 2,784,026 2,784,026 3,299,251 34,220 127,987 52,170 1,540 11,411 - 35,760 139,398 52,170 214,377 12,951 227,328 214,377 12,951 227,328 2,621,006 89,593 $ 2,710,599 163,020 198,304 361,324 2,784,026 287,897 3,071,923 $ $ City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Proprietary Funds For the Year Ended June 30, 2008 Total Nonmajor Proprietary Funds Enterprise Funds Desert Hills Arroyo Dunes Golf Course Golf Course Operating Revenues: Green Fees Cart and Club Rental Pro Shop Sales Restaurant Sales Total Operating Revenues $ Operating Expenses: Operations and Maintenance Depreciation and Amortization Total Operating Expenses 1,054,531 354,281 279,627 542,630 2,231,069 $ 2,438,742 236,006 2,674,748 Non-Operating Revenues/(Expenses): Interest Miscellaneous Revenues Net Non-Operating Revenues 3,221 1,483 4,704 Income/(Loss) before Contributions and Transfers (438,975) Transfers In Transfers Out 230,725 (230,725) Change in Net Assets $ Net Assets-ending 81 2,710,599 1,166 (442,513) 7,590 184 7,774 10,811 1,667 12,478 8,940 (430,035) 230,725 (230,725) 8,940 (430,035) 352,384 3,149,574 $ 1,316,421 368,089 281,084 542,630 2,508,224 2,686,262 264,475 2,950,737 - (438,975) Net Assets-beginning $ 247,520 28,469 275,989 (443,679) Operating Income/(Loss) 261,890 13,808 1,457 277,155 361,324 3,501,958 $ 3,071,923 City of Yuma, Arizona Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended June 30, 2008 Total Nonmajor Proprietary Funds Enterprise Funds Desert Hills Arroyo Dunes Golf Course Golf Course Cash Flow from Operating Activities: Cash Received from Customers Cash Paid to Employees Cash Paid to Suppliers Other Operating Activity Revenue Net Cash Provided by Operating Activities $ Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Cash Paid to Other Funds Net Cash Provided (Used for) Noncapital Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities 2,228,478 $ (1,061,755) (1,342,589) 1,482 (174,384) 230,725 (230,725) - 230,725 (230,725) - - - 4,448 4,448 Net Increase/(Decrease) in Cash and Cash Equivalents (169,936) Cash and Cash Equivalents, July 1 Cash and Cash Equivalents, June 30 82 371,391 201,455 7,685 7,685 12,133 12,133 34,417 (135,519) $ 175,058 209,475 $ 546,449 410,930 $ (443,679) $ 1,166 $ (442,513) $ 236,006 (942) 5,533 1,754 19,437 7,670 (1,646) 1,483 269,295 (174,384) $ 28,469 209 (2,709) (587) 184 25,566 26,732 $ 264,475 (942) 5,742 1,754 16,728 7,083 (1,646) 1,667 294,861 (147,652) $ Reconciliation of Operating Income/(Loss) to Net Cash Provided by Operating Activities: Operating (Loss) Adjustments to Reconcile Operating Income/(Loss) Depreciation and Amortization Expense (Increase)Decrease in Accounts Receivables (Increase)/Decrease in Inventories (Increase)Decrease in Prepaid Items Increase/(Decrease) in Accounts Payable Increase(decrease) in Accrued Wages and Taxes Payable Increase(decrease) in Unearned Revenue Other Operating Activity Revenue Total Adjustments Net Cash Provided by Operating Activities 277,155 $ 2,505,633 (122,392) (1,184,147) (128,214) (1,470,803) 183 1,665 26,732 (147,652) City of Yuma, Arizona Budgetary Comparison Schedule Water Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Original Resources (inflows): Inside City Outside City Commercial Raw Water Meters, Connections and Services Capital Contributions: System Development Capacity Rights Issuance of Long-Term Debt Interest Miscellaneous Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Administration Treatment Water Transmission Customer Services Water Transfer Laboratory Capital Outlay: Capital Outlay Capital Projects Debt Service: Principal Retirement Interest and Fiscal Agent Fees Total Expenditures Transfers Out Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations $ $ 16,284,000 $ 2,458,500 270,000 448,709 Final Actual Amounts Variance with Final Budget Positive (Negative) 16,284,000 $ 18,391,463 $ 2,458,500 2,635,093 270,000 239,470 448,709 347,964 2,107,463 176,593 (30,530) (100,745) 495,000 3,500,000 89,922,100 424,000 50,000 113,852,309 113,852,309 495,000 3,500,000 89,922,100 424,000 50,000 113,852,309 113,852,309 150,819 2,616,586 102,048,625 1,450,939 158,820 128,039,779 128,039,779 (344,181) (883,414) 12,126,525 1,026,939 108,820 14,187,470 14,187,470 2,503,648 5,742,669 1,564,975 1,263,833 95,749 292,066 2,503,648 5,941,169 1,564,975 1,263,833 95,749 292,066 2,281,645 4,879,759 1,581,469 1,222,715 42,973 216,241 222,003 1,061,410 (16,494) 41,118 52,776 75,825 320,133 100,870,995 121,633 101,384,995 71,813 56,875,417 49,820 44,509,578 3,061,444 2,004,779 117,720,291 62,482 117,782,773 3,061,444 2,004,779 118,234,291 62,482 118,296,773 6,784,394 5,095,987 79,052,413 62,521 79,114,934 (3,722,950) (3,091,208) 39,181,878 (39) 39,181,839 48,924,845 $ 53,369,309 (3,930,464) $ (4,444,464) Reconciliation to Change in Net Assets: Capital Outlay 71,813 Capital Projects 56,875,417 Principal Retirement 6,784,394 Issuance of Long-Term Debt (102,048,624) Capital Contributions for Developer Additions to System 1,014,043 Debt Issuance Costs Deferred 511,598 Amortization of Debt Issuance Costs 141,855 Amortization of Bond Premium (81,592) Loss on Disposal of Assets (2,416) (3,798,142) Depreciation and Amortization $ 8,393,191 Change in Net Assets NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 83 City of Yuma, Arizona Budgetary Comparison Schedule Wastewater Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Original Resources (inflows): Inside City Outside City Contractual/Industrial Services Meters, Connections and Services Capital Contributions: Capacity Rights Wastewater Interceptor Wastewater Trunk Line Charges Issuance of Long-Term Debt Interest Miscellaneous $ Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Administration Treatment Pretreatment Collection Laboratory Capital Outlay: Capital Outlay Capital Projects Debt Service: Principal Retirement Interest and Fiscal Agent Fees Total Expenditures Transfers Out Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations 9,500,000 $ 650,000 1,420,000 52,000 Actual Amounts Final 9,500,000 $ 650,000 1,420,000 52,000 Variance with Final Budget Positive (Negative) 9,599,507 $ 802,173 2,724,414 26,766 99,507 152,173 1,304,414 (25,234) 5,500,000 750,000 2,000 25,978,000 373,000 550,000 44,775,000 44,775,000 5,500,000 750,000 2,000 25,978,000 373,000 550,000 44,775,000 44,775,000 2,996,722 192,734 3,281 30,482,057 454,181 37,999 47,319,834 47,319,834 (2,503,278) (557,266) 1,281 4,504,057 81,181 (512,001) 2,544,834 2,544,834 1,440,951 5,634,485 405,517 798,610 283,750 1,440,951 5,694,485 405,517 798,610 283,750 1,529,503 5,722,478 371,273 832,730 217,717 (88,552) (27,993) 34,244 (34,120) 66,033 199,300 33,062,500 139,300 33,062,500 58,542 23,437,391 80,758 9,625,109 2,014,605 1,269,285 45,109,003 24,112 45,133,115 2,014,605 1,269,285 45,109,003 24,112 45,133,115 3,126,657 2,288,230 37,584,521 33,449 37,617,970 (1,112,052) (1,018,945) 7,524,482 (9,337) 7,515,145 $ (358,115) $ Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Principal Retirement Issuance of Long-Term Debt Amortization of Debt Issuance Costs Capital Contributions for Subdivider Additions to System Loss on Disposal of Assets Depreciation and Amortization Change in Net Assets (358,115) 9,701,864 $ 10,059,979 58,542 23,437,391 3,126,657 (30,482,057) 189,077 1,900,177 (50,047) (2,565,743) $ 5,315,861 NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 84 City of Yuma, Arizona Budgetary Comparison Schedule Desert Hills Golf Course Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Budget Resources (inflows): Green Fees Cart and Club Rental Pro Shop Sales Restaurant Sales Interest Miscellaneous Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Maintenance Concession Restaurant Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations Original Final $ 1,150,929 361,001 320,652 546,616 3,500 2,382,698 230,763 2,613,461 $ 1,150,929 361,001 320,652 546,616 3,500 2,382,698 230,763 2,613,461 1,209,560 666,126 660,344 9,000 2,545,030 230,763 2,775,793 1,209,560 666,126 660,344 9,000 2,545,030 230,763 2,775,793 $ (162,332) $ Actual Amounts $ 1,054,531 354,281 279,627 542,630 3,221 1,483 2,235,773 230,725 2,466,498 Variance with Final Budget Positive (Negative) $ 1,197,949 615,665 625,128 2,438,742 230,725 2,669,467 (202,969) $ (162,332) Reconciliation to Change in Net Assets: Depreciation and Amortization (96,398) (6,720) (41,025) (3,986) (279) 1,483 (146,925) (38) (146,963) 11,611 50,461 35,216 9,000 106,288 38 106,326 (40,637) (236,006) $ Change in Net Assets (438,975) NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 85 City of Yuma, Arizona Budgetary Comparison Schedule Arroyo Dunes Golf Course Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Actual Amounts Budget Original Final Resources (inflows): Green Fees Cart and Club Rental Pro Shop Sales Interest Miscellaneous $ Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Maintenance Concession Total Expenditures Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations 257,814 14,174 1,564 3,500 277,052 277,052 $ 231,001 49,593 280,594 280,594 $ (3,542) $ 257,814 14,174 1,564 3,500 277,052 277,052 $ 231,001 49,593 280,594 280,594 261,890 13,808 1,457 7,590 184 284,929 284,929 Variance with Final Budget Positive (Negative) $ 206,106 41,414 247,520 247,520 37,409 (3,542) Reconciliation to Change in Net Assets: Depreciation and Amortization 4,076 (366) (107) 4,090 184 7,877 7,877 24,895 8,179 33,074 33,074 $ 40,951 (28,469) $ Change in Net Assets 8,940 NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 86 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City and to other governmental units, on a costreimbursement basis. Equipment Replacement To account for the associated costs of purchasing vehicles and equipment for rental to other departments. Equipment Maintenance maintenance operations. To record the financial activity of fleet Insurance Reserve To record the financial activity related to insurance and risk retention for liability and casualty issues. Employee Benefits Trust To record the financial activity of a self funded insurance trust fund that covers eligible employees and dependent health, life, and dental claims. Workers Compensation To record the financial activity of a selffunded worker’s compensation insurance trust fund. 87 City of Yuma, Arizona Combining Statement of Net Assets Internal Service Funds June 30, 2008 Assets Current Assets: Cash and Investments Accounts Receivable Intergovernmental Receivable Accrued Interest Inventory, at cost Prepaid Items Total Current Assets Noncurrent Assets: Capital Assets: Land Buildings Improvements Other than Buildings Equipment Less Accumulated Depreciation Total Noncurrent Assets Total Assets Liabilities Liabilities: Accounts Payable Accrued Payroll, Taxes and Benefits Payable Estimated Claims and Judgements Due to Other Funds Total Liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total Net Assets Insurance Reserve Employee Benefits Trust $ 2,453,735 42,562 12,057 2,508,354 $ 533,818 3,295 537,113 2,508,354 537,113 1,092,237 96,585 30,347 126,932 191 191 7,386 635,985 270,087 913,458 287,499 136,850 666,332 765,690 1,856,371 549,759 (123,682) 2,381,422 426,077 $ 2,381,422 536,922 $ 536,922 178,779 178,779 11,571,701 21,338,369 $ 32,910,070 Equipment Equipment Replacement Maintenance $ 18,269,593 105,821 18,375,414 $ 26,675,542 (15,653,600) 11,021,942 29,397,356 219,610 19,251 189,631 203,492 (82,225) 549,759 1,231,381 10,486 10,486 11,021,942 18,364,928 $ 29,386,870 61,947 54,789 16 563,823 1,047 681,622 172,851 136,850 495,603 805,304 $ 88 Workers Compensation $ $ 1,054,720 33,623 3,894 1,092,237 Totals $ 22,373,813 130,974 16 125,067 563,823 1,047 23,194,740 219,610 19,251 189,631 26,879,034 (15,735,825) 11,571,701 34,766,441 City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds For the Year Ended June 30, 2008 Equipment Replacement Operating Revenues: Charges For Services Contributions City Property Damage Restitution Equipment Rental Miscellaneous Total Operating Revenues $ - Equipment Maintenance Insurance Reserve Employee Benefits Trust $ 4,288,666 $ 1,781,987 $ - Workers Compensation $ - Totals $ 6,070,653 3,206,097 3,206,097 4,288,666 5,328 32,806 1,820,121 2,610 2,610 840,103 40,920 881,023 840,103 5,328 3,206,097 76,336 10,198,517 Operating Expenses: Claims Incurred Premiums to Insurance Carriers Administration Depreciation Total Operating Expenses Operating Income/(Loss) 51,380 2,311,019 2,362,399 843,698 4,380,936 18,609 4,399,545 (110,879) 26,840 527,180 659,798 1,213,818 606,303 62,040 8,700 70,740 (68,130) 186,508 111,782 33,000 331,290 549,733 213,348 701,002 5,133,814 2,329,628 8,377,792 1,820,725 Non-Operating Revenue/(Expenses): Interest Gain on the Sale of Assets Total Non-Operating Revenues 799,072 322,963 1,122,035 - 89,958 89,958 26,440 26,440 39,914 39,914 955,384 322,963 1,278,347 1,965,733 (110,879) 696,261 (41,690) 589,647 3,099,072 27,421,137 536,956 578,612 (410,868) 29,810,998 Change in Net Assets Net Assets, Beginning Net Assets, Ending $ 29,386,870 $ 1,685,161 426,077 $ 2,381,422 $ 536,922 $ 89 178,779 $ 32,910,070 City of Yuma, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2008 Equipment Replacement Cash Flows from Operating Activities: Cash Received from Customers Cash Paid to Employees Cash Paid to Suppliers Cash Paid For Operating Expenses Net Cash Flows Provided by/(Used for) Operating Activities $ Cash Flows from Capital and Related Financing Activities: Proceeds from Sale of Capital Assets Payments for Capital Acquisitions Net Cash Flows Used for Capital and Related Financing Activities Cash Flows from Investing Activities Receipt of Interest Net Cash Flows Provided by Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Insurance Reserve Employee Benefits Trust Workers Compensation 3,154,717 $ 4,384,386 1,820,152 $ 2,610 $ (1,260,671) 160,417 (70,732) (3,109,808) (1,259,641) 3,154,717 Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Net Cash Flows Provided by/(Used for) Noncapital Financing Activities Cash and Cash Equivalents, July 1, 2007 Cash and Cash Equivalents, June 30, 2008 Equipment Maintenance Totals 847,401 $ 10,209,266 (1,260,671) 89,685 (505,979) (4,875,428) 174,324 560,510 (68,122) 341,422 - - - - (282,995) (282,995) - - - - (282,995) (282,995) 383,216 (3,792,840) (150,194) - - - 383,216 (3,943,034) (3,409,624) (150,194) - - - (3,559,818) 24,130 90,110 90,110 650,620 27,949 27,949 (40,173) 43,736 43,736 102,163 990,459 990,459 1,310,497 828,664 828,664 573,757 17,695,836 $ 18,269,593 $ 4,162,851 37,817 1,803,114 573,991 61,947 $ 2,453,735 $ 533,818 $ 952,557 21,063,315 1,054,720 $ 22,373,813 (110,879) $ 606,303 $ (68,130) $ 549,733 $ 1,820,725 Reconciliation of Operating Income/(Loss) to Net Cash Provided by/(Used for) Operating Activities: Operating Income/(Loss) $ Adjustments to Reconcile Operating Income/(Loss) to Net Cash Provided by/(Used for) Operating Activities: Depreciation Expense (Increase)/Decrease in Accounts Receivable (Increase)/Decrease in Inventory (Increase)/Decrease in Prepaid Items Increase/(Decrease) in Accounts Payable Increase/(Decrease) in Payroll Liabilities Increase/(Decrease) in Claims Incurred but Not Reported Total Adjustments Net Cash Provided by/(Used for) Operating Activities $ 843,698 $ 2,311,019 2,311,019 18,609 95,720 27,781 (1,047) 132,635 11,505 285,203 3,154,717 $ 174,324 $ 560,510 $ (68,122) $ 90 31 (41,510) (4,313) (45,793) 8 8 (33,622) 7,386 (182,075) (208,311) 2,329,628 62,129 27,781 (1,047) 98,519 11,505 (186,388) 2,342,126 341,422 $ 4,162,851 City of Yuma, Arizona Budgetary Comparison Schedule Equipment Replacement Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Actual Amounts Budget Original Resources (inflows): Charges for Services Interest Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current Administration Capital Outlay Total Expenditures Total Charges to Appropriations Excess of Resources Over Charges to Appropriations $ 3,185,997 750,000 3,935,997 3,935,997 51,380 5,831,614 5,882,994 5,882,994 Final $ 3,185,997 750,000 3,935,997 3,935,997 51,380 5,836,011 5,887,391 5,887,391 $ (1,946,997) $ (1,951,394) Reconciliation to Change in Net Assets: Capital Outlay Loss on Sale of Assets Depreciation and Amortization Change in Net Assets $ 3,206,097 799,072 4,005,169 4,005,169 Variance with Final Budget Positive (Negative) $ 51,380 3,772,719 3,824,099 3,824,099 181,070 20,100 49,072 69,172 69,172 2,063,292 2,063,292 2,063,292 $ 2,132,464 3,772,719 322,963 (2,311,019) $ 1,965,733 NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 91 City of Yuma, Arizona Budgetary Comparison Schedule Equipment Maintenance Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Actual Amounts Budget Original Resources (inflows): Charges for Services Miscellaneous Total Revenues $ Amounts Available for Appropriation Charges to Appropriations (outflows): Current Administration Capital Outlay Capital Outlay Total Expenditures Total Charges to Appropriations Excess of Resources Over Charges to Appropriations 3,694,734 3,694,734 Final $ 3,694,734 3,694,734 3,694,734 3,694,734 3,728,164 139,500 3,728,164 139,500 4,380,936 150,194 (652,772) (10,694) 3,867,664 3,867,664 3,867,664 4,531,130 4,531,130 (663,466) (663,466) 3,867,664 $ (172,930) $ Reconciliation to Change in Net Assets: Capital Outlay Depreciation and Amortization Change in Net Assets $ 4,286,777 1,889 4,288,666 4,288,666 Variance with Final Budget Positive (Negative) $ (242,464) $ (172,930) $ 592,043 1,889 593,932 593,932 (69,534) 150,194 (18,609) (110,879) NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 92 City of Yuma, Arizona Budgetary Comparison Schedule Insurance Reserve Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2008 Actual Amounts Budget Original Resources (inflows): Charges for Services Property Damage Restitution Miscellaneous Interest Total Revenues $ $ 2,127,574 Amounts Available for Appropriation Charges to Appropriations (outflows): Current Premiums to Insurance Carriers Claims Incurred Administration Total Expenditures Total Charges to Appropriations Excess of Resources Over Charges to Appropriations 2,072,574 5,000 50,000 2,127,574 Final 835,266 174,000 611,000 1,620,266 507,308 Reconciliation to Change in Net Assets: Change in Net Assets $ 835,266 174,000 611,000 1,620,266 1,620,266 1,620,266 $ 2,072,574 5,000 50,000 2,127,574 2,127,574 $ 507,308 1,781,987 5,328 32,806 89,958 1,910,079 1,910,079 Variance with Final Budget Positive (Negative) $ 527,180 26,840 659,798 1,213,818 1,213,818 $ 696,261 $ 696,261 (290,587) 328 32,806 39,958 (217,495) (217,495) 308,086 147,160 (48,798) 406,448 406,448 $ 188,953 NOTE: This exhibit is prepared on the modified accrual basis to correspond with the City's budget practices. It is not intended to present the operations in accordance with generally accepted accounting principles. 93 94 STATISTICAL SECTION 95 96 STATISTICAL SECTION This part of the City of Yuma's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial condition. Contents Page Financial Trends 98 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 106 These schedules contain information to help the reader assess the City's most significant local revenue source - sales tax. Debt Capacity 108 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and it's ability to issue additional debt in the future. Demographic and Economic Information 114 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 116 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: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the respective year. 97 City of Yuma, Arizona Net Assets by Component Last Seven Fiscal Years (amounts expressed in thousands) 2002 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activites net assets Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activites net assets 98 Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets $ $ $ $ $ $ 69,300 1,484 44,208 114,993 80,224 23,251 103,475 149,524 1,484 67,460 218,468 2003 $ $ $ $ $ $ 81,689 50,234 131,922 85,380 22,511 107,891 167,069 72,744 239,813 Fiscal Year 2005 2004 $ $ $ $ $ $ 95,005 55,748 150,752 86,266 31,537 117,803 181,271 87,284 268,555 $ $ $ $ $ $ 111,268 330 57,707 169,305 105,944 27,122 133,067 217,212 330 84,829 302,372 2006 $ $ $ $ $ $ 130,176 24,820 42,605 197,601 119,734 26,569 146,303 249,910 24,820 69,174 343,904 Data for ten years as required for this table is not available as presentation of Net Assets as part of the financial statement began in FY2002. 2007 $ $ $ $ $ $ 160,214 12,991 43,638 216,844 154,054 7,587 161,641 314,268 12,991 51,225 378,485 2008 $ $ $ $ $ $ 169,403 17,952 45,354 232,709 151,032 151 24,079 175,262 320,435 18,103 69,433 407,971 City of Yuma, Arizona Changes in Net Assets Last Seven Fiscal Years (amounts expressed in thousands) Fiscal Year 2003 2002 99 Expenses Governmental activities: General government Public Safety Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Interest on Long-Term Debt Total governmental activites expenses Business-type activities: Water Wastewater Golf Courses Total business-type activites expenses Total primary government expenses Program Revenues Governmental activities: Charges for Services Building Inspection Fees Police Services Other Charges Developer Charges Operating Grants and Contributions Capital Grants and Contributions Total governmental activities program revenues Business-type activities: Charges for Services Metered Water Sales Wastewater Charges Green Fees and Concessions Other Charges Operating Grants and Contributions Capital Grants and Contributions Total business-type activities program revenues Total primary government program revenues $ 3,478 23,567 9,098 8,526 3,251 5,246 3,227 56,393 $ 6,950 25,455 7,944 8,862 2,936 6,369 2,878 61,393 2004 $ 7,059 26,988 8,654 9,475 2,994 5,551 2,972 63,692 2005 $ $ $ $ 75,204 $ 81,267 $ 84,411 $ 91,536 $ 105,572 $ 116,383 $ 133,971 $ 356 460 4,735 545 2,795 1,650 10,539 $ $ 926 488 7,374 365 3,290 3,703 16,145 $ 1,023 605 8,768 3,995 3,568 1,747 19,705 $ 1,019 698 8,968 3,520 2,840 5,679 22,723 $ 985 805 8,407 4,517 2,661 5,341 22,718 $ 710 764 8,916 6,657 2,294 5,000 24,342 8,821 5,583 2,123 681 6,260 23,468 34,008 9,458 6,578 1,937 890 5,439 24,302 $ 36,477 $ $ $ $ 14,797 9,081 2,191 1,393 11,025 38,487 61,210 14,562 11,538 2,676 28,777 11,875 38,511 18,943 14,353 4,604 5,807 5,331 99,424 $ 12,297 8,000 1,994 1,221 11,657 35,169 54,874 13,010 10,403 2,641 26,053 10,919 36,067 13,384 15,400 2,098 6,791 2,948 87,606 2008 10,326 7,024 2,524 19,874 10,481 7,613 1,992 1,023 8,923 30,032 46,177 11,456 8,750 2,514 22,720 9,124 33,057 12,326 12,173 3,410 6,529 2,899 79,519 2007 9,836 6,484 2,490 18,810 612 644 5,709 129 3,684 1,398 12,175 10,884 7,341 2,493 20,719 7,117 30,707 9,061 9,841 3,608 5,438 3,042 68,815 2006 $ 18,389 13,270 2,889 34,548 17,522 21,027 10,387 13,126 2,189 2,140 1,390 1,181 11,249 8,874 42,736 46,348 65,454 $ 70,690 Continued on next page City of Yuma, Arizona Changes in Net Assets Last Seven Fiscal Years (amounts expressed in thousands) Fiscal Year 2003 2002 Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense 100 General Revenues and Other Changes in Net Assets Governmental activities: Property taxes Sales taxes Franchise taxes Shared revenues Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain from sale of fixed assets Transfers Total governmental activities Business-type activities: Investment earnings Special Item - Litigation Transfers Total business-type activities Total primary government Change in Net Assets Governmental activities Business-type activities Total primary government $ $ $ (45,854) $ (49,218) $ 4,658 4,428 (41,196) $ (44,790) $ 5,338 25,039 1,836 23,258 2,227 382 58,079 $ $ $ 2004 $ 5,678 25,484 1,719 24,225 7,577 $ 877 587 66,148 2005 (47,547) $ 9,313 (38,234) $ 5,953 28,529 1,936 24,021 5,198 $ 2006 (49,110) $ 12,449 (36,661) $ 6,076 32,795 2,105 25,462 1,673 $ 2007 (56,795) $ 12,434 (44,361) $ 6,832 36,557 3,116 28,226 7,826 $ 2008 (64,889) $ 13,959 (50,929) $ 7,430 39,616 2,678 30,558 115 $ (75,082) 11,800 (63,281) 8,250 39,478 2,893 32,788 2,600 292 920 (473) 66,377 1,370 307 (2,124) 67,663 2,190 348 (4) 85,091 4,097 (363) 84,132 4,842 (96) 90,755 999 575 (1,220) (382) (587) (603) (12) 57,476 $ 66,136 $ 125 473 599 66,976 691 2,124 2,815 70,478 798 4 802 85,894 1,016 363 1,379 85,511 1,916 96 2,012 92,767 12,225 4,055 16,280 18,830 9,912 28,742 $ 16,930 4,416 $ 21,346 $ $ $ $ $ 18,553 15,264 33,816 $ $ $ 28,296 13,236 41,532 $ $ $ 19,243 15,338 34,582 Data for ten years as required for this table is not available as presentation of Net Assets as part of the financial statement began in FY2002. $ $ 15,865 13,620 $ 29,486 Concluded City of Yuma, Arizona Governmental Funds Tax Revenues by Source Last Ten Fiscal Years Fiscal Year General Sales Tax Property Tax City Road Sales Tax Public Safety Sales Tax Civic Center Two Percent Excise Tax Tax $ 101 1999 $4,486,819 $ 10,354,676 $ 5,088,978 $ 2,105,780 2000 4,730,665 11,342,233 5,574,996 2001 5,243,984 12,836,934 2002 5,193,075 2003 Utility Franchise Public Enterprise In-Lieu Mall District Levy Total 1,263 $ 2,313,453 $ 1,224,830 $ 42,000 $ 48,771 $25,666,570 2,306,895 5,674 2,363,269 1,796,281 242,000 50,671 28,412,684 6,417,376 2,566,078 - 2,490,071 2,135,544 242,000 62,912 31,994,899 13,116,950 6,448,954 2,578,704 - 2,652,152 1,835,810 242,000 64,172 32,131,817 5,525,546 13,237,042 6,617,396 2,646,059 - 2,741,989 1,719,272 242,000 83,184 32,812,488 2004 5,857,825 14,849,984 7,423,730 2,968,482 - 3,044,645 1,935,952 242,000 88,411 36,411,029 2005 6,084,442 17,165,647 8,581,364 3,431,379 - 3,374,350 2,105,116 242,000 93,863 41,078,161 2006 6,699,038 19,087,873 9,542,314 3,815,628 - 3,866,902 3,116,225 244,610 101,821 46,474,411 2007 7,278,233 20,672,520 10,334,503 4,132,396 - 4,232,008 2,678,454 244,610 113,345 49,686,069 2008 8,026,861 20,479,641 10,238,080 4,093,839 - 4,424,358 2,893,077 242,000 105,394 50,503,250 City of Yuma, Arizona Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2000 1999 General Fund Reserved Unreserved Total General Fund 102 All other governmental funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds $ $ 427 6,264 6,691 $ $ $ 2,008 $ 17,349 507 7,806 8,312 $ 12,454 2,888 2001 $ $ 89 $ 14,404 1,143 $ 15,636 2002 2004 11,563 $ 13,551 $ 15,576 $ 17,537 $ 20,000 $ 21,739 $ 20,202 $ 18,885 3,173 $ 1,567 $ $ $ $ $ $ 39,327 $ 63 296 19,704 339 614 21,125 2008 $ $ $ 2007 539 13,012 85 101 17,436 2006 $ 489 15,087 $ 2005 490 11,073 10,704 25,450 $ Fiscal Year 2003 535 $ 309 19,893 513 $ 277 18,608 543 9,424 3,355 10,495 5,967 13,407 6,920 17,036 1,104 19,908 5,976 12,892 926 8,791 67,732 14,346 $ 16,548 $ 20,391 $ 18,479 $ 26,418 14,331 77,066 City of Yuma, Arizona 1999 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2000 2001 2002 2003 2004 2005 $25,667 948 23,330 1,672 511 12 1,634 63 199 54,036 $28,413 1,250 24,683 2,111 448 13 1,923 77 281 59,198 $31,995 1,464 24,587 2,411 588 6 2,630 50 298 64,030 $32,132 1,439 27,699 2,876 671 2,494 26 259 67,594 $32,812 2,063 29,298 2,983 801 1,429 28 336 69,750 $36,411 3,016 31,041 3,905 726 1,154 33 480 76,766 $3,432 17,695 3,421 5,799 2,314 4,242 19,102 $3,834 19,423 4,157 6,541 2,401 4,827 12,774 $3,498 20,733 4,163 6,704 2,823 4,811 23,092 $4,001 22,660 4,393 7,428 3,175 5,331 37,311 $4,732 24,364 4,884 7,765 3,000 6,338 19,198 2,534 1,965 60,504 3,786 1,914 59,655 3,897 2,151 71,872 4,346 3,227 91,872 5,248 2,872 78,402 2006 2007 2008 $41,078 3,416 30,729 7,937 806 1,971 84 1,152 87,173 $46,474 3,836 36,044 7,737 863 649 2,809 80 548 99,041 $49,686 2,845 37,915 8,804 1,039 679 4,374 78 624 106,045 $50,503 2,068 39,237 11,599 1,143 914 5,358 65 633 111,521 $5,409 25,752 4,767 7,828 3,062 5,429 19,656 $5,033 29,296 4,899 8,534 3,014 5,344 21,151 $7,185 31,863 5,626 9,727 3,365 6,422 22,688 $7,641 35,014 7,155 11,022 3,551 6,698 41,450 $9,723 37,874 8,913 11,547 4,757 5,726 51,149 3,825 2,962 78,689 3,447 3,032 83,750 4,209 2,890 93,975 3,837 2,939 119,306 8,312 5,885 143,885 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special Assessments Use of money and property Contributions and donations Miscellaneous Total revenues Expenditures 103 General government Public Safety Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Outlay Debt Service Principal Interest and fiscal agent fees Total expenditures Excess of revenues over (under) expenditures $ (6,468) $ (457) $ (7,841) $ (24,277) $ (8,651) $ (1,922) $ 3,423 $ 5,066 $ (13,261) $ (32,364) Other financing sources (uses) Proceeds from long-term debt Sale of real property Transfers in Transfers out Total other financing sources (uses) $ Net change in fund balances $ Debt service as a percentage of noncapital expenditures 6,020 $ $ 34,209 $ 909 $ 31,490 $ 7,280 $ $ 3,875 $ $ 93,686 281 455 (19,199) 920 307 742 11,781 17,511 23,490 21,423 21,117 21,609 20,219 25,016 38,410 29,685 (11,333) (17,145) (23,198) (21,501) (20,530) (22,082) (23,398) (25,021) (38,773) (29,589) 6,468 365 34,783 1,285 12,878 7,727 (2,872) 4,612 (363) 93,782 (1) $ 10.9% (91) $ 26,941 12.2% 12.4% $ (22,993) $ 13.9% 4,226 13.7% $ 5,805 11.5% $ 551 10.4% $ 9,678 10.0% $ 13,624 8.7% $ 61,418 15.3% City of Yuma, Arizona Governmental Funds Intergovernmental Shared Revenues Last Ten Fiscal Years Local Transportion Assistance Grants and Others* Total $ 424,669 $ 3,621,672 $ 23,329,979 104 Fiscal Year Sales Tax Revenue Sharing 1999 $ 5,002,193 $ 6,212,451 $ 2,030,291 2000 5,515,532 6,958,385 2,075,329 6,715,766 418,463 2,999,869 24,683,344 2001 5,779,653 7,303,100 2,235,482 6,157,241 425,571 2,686,448 24,587,495 2002 5,973,339 8,084,914 2,345,195 6,414,401 440,004 4,440,943 27,698,796 2003 6,062,278 8,250,011 2,746,086 6,732,659 434,212 5,072,923 29,298,169 2004 6,535,654 7,002,250 2,852,832 7,198,891 431,754 7,019,763 31,041,144 2005 7,196,762 7,141,392 3,067,961 7,627,177 428,520 5,230,199 30,692,011 2006 8,292,930 8,133,573 3,391,236 7,980,673 427,528 7,818,092 36,044,032 2007 8,437,831 10,079,129 3,476,885 8,137,895 425,850 7,357,643 37,915,233 2008 8,183,395 12,518,215 3,518,863 8,144,889 423,058 6,448,868 39,237,288 Auto In-Lieu Highway Users $ 6,038,703 *See 'Intergovernmental Revenues - Grants and Others' for detail information. City of Yuma, Arizona Intergovernmental Revenues - Grants and Other Last Ten Fiscal Years Federal State of Arizona Housing/Urban Economic Development Development (CDBG) Administration 105 Fiscal Year Justice Interior 1999 $869,432 $109,421 $1,372,433 2000 948,716 172,030 1,215,765 - 82,536 89,525 2001 970,255 158,271 706,783 - 199,998 2002 1,010,764 405,198 640,280 - 2003 1,309,351 1,398,560 991,044 2004 3,462,972 575,124 2005 1,233,650 2006 $9,234 Other HUD $ - Other $38,543 Parks $ - Commerce Transportation Other Local Government Total $286,709 $600,000 $275,869 $60,031 $3,621,672 169,567 20,339 40,000 46,535 214,856 2,999,869 156,327 393,823 10,054 - 90,937 - 2,686,448 229,712 507,488 753,502 264,684 240,890 366,161 22,264 4,440,943 - 169,579 413,527 96,498 441,101 - 233,831 19,432 5,072,923 1,349,178 - 405,814 896,311 87,359 - 151,489 60,457 7,019,763 465,209 594,924 - 80,301 2,485,908 79,123 - 925,898 1,404,369 1,044,705 - 251,898 3,264,509 120,555 2007 524,591 417,782 1,334,775 - - 4,090,532 2008 1,001,408 621,480 899,272 - - 1,335,165 31,059 - 291,084 - 5,230,199 13,000 376,323 388,547 28,288 7,818,092 432,498 130,213 233,689 59,422 134,141 7,357,643 505,838 1,844,645 214,649 26,411 - 6,448,868 City of Yuma, Arizona Taxable Sales by Category Last Ten Fiscal Years (amounts expressed in thousands) 1999 Mining $ 2000 11 $ 2001 22 $ Fiscal Years 2003 2004 2002 25 $ - $ 3 $ - 2005 $ 2006 1 $ 2007 3 $ 2008 25 $ 155 Construction 92,185 95,975 107,204 123,550 132,387 166,117 228,801 235,643 254,740 249,315 Manufacturing 20,277 27,488 40,897 26,315 23,128 28,969 53,176 60,054 57,632 59,931 Transportation, Communications, and Utilities 91,475 99,943 158,945 142,496 126,623 121,936 145,454 173,224 186,420 207,693 Wholesale Trade 24,136 28,966 25,543 26,615 27,587 23,625 29,635 35,498 34,732 22,480 591,642 651,145 701,473 730,255 760,867 823,785 925,936 1,024,886 1,088,053 1,089,001 Restaurants and Bars 84,401 88,227 93,828 99,965 103,690 110,633 123,683 143,594 157,866 162,560 Fire Insurance and Real Estate 66,316 76,017 88,464 42,494 42,376 69,235 97,875 117,161 143,725 132,593 Hotels and Other Lodging 21,966 23,844 26,911 25,328 26,789 30,785 34,930 37,333 39,360 33,642 Services 31,993 34,203 33,342 78,342 79,392 66,721 44,921 48,639 58,050 52,012 7,919 5,000 6,919 1,216 717 43,029 31,963 32,542 46,423 38,503 $ 1,032,320 $ 1,130,831 $ 1,283,552 $ 1,296,576 $ 1,323,559 $ 1,484,835 $ 1,716,376 $ 1,908,577 $ 2,067,025 $ 2,047,885 Retail Trade 106 Arts, Entertainment, Government and All Others Not Specified City direct sales tax rate 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% Source: Arizona Department of Revenue Note: During fiscal 2004, the Department of Revenue implemented a new collection system with a revised reporting scheme. Accordingly, certain classifications have been combined for comparison purposes. 1.70% 1.70% 1.70% City of Yuma, Arizona Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Fiscal Year City Sales Tax Rate City Hospitality Sales Tax Rate Yuma County Arizona State 107 1999 1.70% 2.00% 1.50% 5.00% 2000 1.70% 2.00% 1.50% 5.00% 2001 1.70% 2.00% 1.50% 5.00% 2002 1.70% 2.00% 1.50% 5.60% 2003 1.70% 2.00% 1.50% 5.60% 2004 1.70% 2.00% 1.50% 5.60% 2005 1.70% 2.00% 1.60% 5.60% 2006 1.70% 2.00% 1.60% 5.60% 2007 1.70% 2.00% 1.10% 5.60% 2008 1.70% 2.00% 1.10% 5.60% Source: Arizona Department of Revenue City of Yuma, Arizona Ratio of Outstanding Debt by Type Last Seven Fiscal Years Fiscal Year General Obligation Bonds 2002 $ Governmental Activities Municipal Property Special Corporation Assessment Bonds Bonds - $ 62,315,000 2003 - 66,240,000 2004 - 63,440,000 2005 - 2006 Long-term Contracts Payable Business-Type Activities Municipal Property General Long-term Corporation Obligation Contracts Bonds Bonds Payable Total Primary Government Percentage of Personal Income* - $12,210,000 $ 75,098,334 2.26% Per Capita* 108 - $ 573,334 - 3,320,000 - 11,385,000 10,408,191 91,353,191 2.80% 548 7,280,000 2,515,000 - 10,505,000 33,790,746 117,530,746 3.30% 705 60,420,000 7,280,000 1,723,000 - 9,575,000 61,072,113 140,070,113 3.67% 840 - 57,765,000 10,475,000 924,000 - 8,585,000 74,110,111 151,859,111 3.73% 911 2007 - 55,035,000 9,765,000 117,000 - 7,535,000 84,154,117 156,606,117 NA 939 2008 - 144,100,000 8,820,000 - 6,420,000 80,379,511 367,644,511 NA $ $ 127,925,000 $ - Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. *See the Schedule of Demographic and Economic Statistics on page 114 for personal income and population data. $ 450 NA City of Yuma, Arizona Ratio of General Bonded Debt to Assessed Value and General Bonded Debt Per Capita Last Ten Fiscal Years Fiscal Year Population 1999 69,055 2000 Assessed Value $ General Bonded Debt Ratio of General Bonded Debt to Assessed Value General Bonded Debt per Capita 109 232,397,991 - - - 71,000 245,008,969 - - - 2001 77,515 256,612,102 - - - 2002 81,380 278,555,470 - - - 2003 80,300 305,708,909 - - - 2004 83,330 322,623,524 - - - 2005 86,070 329,526,546 - - - 2006 88,775 367,376,807 - - - 2007 92,160 468,531,273 - - - 2008 93,212 572,280,942 - - - Source: Yuma County Assessor Arizona Department of Economic Security City of Yuma, Arizona Computation of Direct and Overlapping Debt June 30, 2008 Debt Jurisdiction City of Yuma Outstanding $ - Allocable to City of Yuma Percent Amount 100.00% $ - 110 Yuma County 20,670,000 48.39% 10,001,852 Yuma County Library District 50,935,000 48.39% 24,646,556 Yuma County Community College District 75,805,000 48.39% 36,680,714 Yuma Union High School District No. 70 57,340,000 54.04% 30,986,536 Yuma School District No. 1 23,400,000 56.13% 13,135,479 Yuma School District No. 13 17,585,000 64.49% 11,340,615 Total Overlapping Debt Source: Yuma County Treasurer and Finance Department Note: School district valuation applicable percentage estimated $ 126,791,752 City of Yuma, Arizona Legal Debt Margin Information June 30, 2008 (amounts expressed in thousands) 1999 Debt Limit Water, Sewer, Lights, Parks (20%) $ 46,480 All Others (6%) 13,944 2000 2001 Fiscal Year 2003 2004 2002 2005 2006 2007 2008 $ 49,002 14,701 $ 51,322 15,397 $ 56,049 16,815 $ 61,142 18,343 $ 64,525 19,357 $ 65,905 19,772 $ 73,475 22,043 $ 572,281 114,456 $ 114,456 34,337 14,385 - 13,715 - 12,995 - 12,210 - 11,385 - 10,505 - 9,575 - 8,585 - 7,535 - 6,420 - Legal debt margin Water, Sewer, Lights, Parks (20%) $ 32,765 All Others (6%) 13,944 $ 36,007 14,701 $ 39,112 15,397 $ 44,664 16,815 $ 50,637 18,343 $ 54,950 19,357 $ 57,320 19,772 $ 67,890 22,043 108,036 $ 108,036 34,337 Total net debt applicable to limit Water, Sewer, Lights, Parks (20%) All Others (6%) Total net debt applicable to the limit as a percentage of debt limit Water, Sewer, Lights, Parks (20%) All Others (6%) 30.95% 0.00% 27.99% 0.00% 25.32% 0.00% 21.78% 0.00% 18.62% 0.00% 16.28% 0.00% 14.53% 0.00% 11.68% 0.00% $ 1.32% 0.00% 5.61% 0.00% 111 Legal Debt Margin Calculation for Fiscal Year 2008 General Obligation Bonds 2007 Tax Year Secondary Assessed Valuation Outstanding General Obligation Debt: Project 1997 Total General Obligation Debt $ 572,281 Water, Sewer, Lights, Parks (20%) All Others (6%) $ 114,456 $ - 6,420 6,420 $ 108,036 $ (1) Under the Arizona Constitution, cities may issue General Obligation Bonds for purposes of water, sewer, artificial light and parks, open space preserves, playgrounds and recreational facilities up to an amount not exceeding 20% of secondary assessed valuation. (2) Under the Arizona Constitution, cities may issue General Obligation Bonds for all purposes other than those listed in (1) above up to an amount not to exceed 6% of secondary assessed valuation. 34,337 34,337 City of Yuma, Arizona Schedule of Municipal Property Corporation Debt Service Requirements and Coverage Series 2001, 2007, and 2003 Refunding 1995 Covenants 2003 Ref 2003 Ref 1995A 2003 Ref 1995B 1995C 2007 D 2007-08 Pledged Taxes 2007-08 Net Revenue Total Taxes/Net Revenue 112 2008-09 Debt related to pledge: 2003 Ref 1995 Series A 2003 Ref 1995 Series B 2003 Ref 1995 Series C 2001 Series 2003 Series 2007 Series B 2007 Series D WIFA Loans (Parity Obligations) 2007 Series Utilities Total Debt Coverage Required Coverage Collective Coverage Total 2007-08 Taxes/Net Revenue Total 2008-09 Debt Coverage Required Coverage $ 59,394,409 59,394,409 $ $ 1,572,953 1,572,953 37.8 4.0 $ 59,394,409 $ 12,386,941 4.8 4.0 $ $ $ $ $ 55,300,570 55,300,570 304,085 2,534,125 693,370 2,298,220 5,829,800 9.5 3.0 55,300,570 12,386,941 4.5 3.0 $ 59,724,928 59,724,928 $ $ 234,463 234,463 254.7 3.5 $ 59,724,928 $ 12,386,941 4.8 3.5 2007 Series Utilities $ 65,538,650 65,538,650 $ $ 4,749,725 4,749,725 13.8 1.5 $ 65,538,650 $ 12,386,941 5.3 3.0 Total $ 1,572,953 304,085 234,463 2,534,125 693,370 2,298,220 4,749,725 $ 12,386,941 $ 23,930,428 23,930,428 $ 6,687,634 8,885,138 15,572,772 1.5 1.2 $ $ $ $ 23,930,428 15,572,772 1.5 1.0 2001, 2003, 2007B, 2007D and 2003 Refunding 1995 Series: Bond covenants require that each series cover both its related debt and the collective debt for the succeeding year. 2007 Series Utilities: Net Revenue is comprised of all income, monies, and receipts from ownership and operation of utility system to include interest income minus operation and maintenance expenses (excludes depreciation and interest on bonds). City of Yuma, Arizona Pledged Tax Collections 1999 113 Local Taxes Sales Tax (1%) $ 10,354,676 1,266,830 Franchise Fee Intergovernmental Revenues: State Revenue Sharing 6,212,451 State Sales Tax 5,002,193 Auto In-Lieu Tax 2,030,291 Emergency Services and Other 18,079 Licenses: Business Licenses 286,644 32,395 Liquor Licenses Fees for Services: 912,959 Building Permits and Inspection Fees Recreation Fees 286,838 253,442 Police Services and Other Public Safety Fees Use of Money and Property: Investment Income 174,856 Fines, Forfeitures and Penalties: City Court Fines 511,115 27,342,769 Total Series B Pledged Taxes Additional Series A Pledged Taxes City Public Safety Taxes (.2%) 2,105,780 29,448,549 Total Series A Pledged Taxes Additional Series C Pledged Taxes City Special Taxes (2%) 2,313,453 Fiscal Year 2003 2004 2000 2001 2002 2005 2006 2007 2008 $ 11,342,233 2,038,281 $ 12,836,934 2,377,544 $ 13,116,950 2,077,810 $ 13,237,042 1,961,272 $ 14,849,984 2,177,952 $ 17,165,647 2,347,116 $ 19,087,873 3,360,835 $ 20,672,520 2,923,064 $ 20,479,641 3,135,077 6,958,385 5,515,532 2,075,329 21,856 7,303,100 5,779,653 2,235,482 19,675 8,084,914 5,973,339 2,345,195 22,264 8,250,011 6,062,278 2,746,086 19,432 7,002,250 6,535,654 2,852,832 36,132 7,141,392 7,196,762 3,067,961 36,573 8,133,573 8,292,930 3,391,236 28,288 10,079,129 8,437,831 3,476,885 112,747 12,518,215 8,183,395 3,518,863 133,560 273,704 26,560 262,991 27,990 210,565 27,185 297,643 27,765 291,080 32,115 300,290 32,965 300,596 36,600 315,968 38,880 332,122 34,700 1,318,636 305,014 423,643 1,543,648 332,466 495,782 1,550,072 341,523 482,394 2,343,219 355,658 705,976 3,608,965 381,442 544,869 4,096,137 431,931 647,381 4,508,571 453,273 774,246 3,465,837 485,647 1,335,542 2,401,049 546,680 1,852,400 278,612 457,415 461,606 243,955 70,322 318,886 556,095 1,038,848 1,021,862 447,813 31,025,598 587,620 34,260,300 670,837 35,364,654 801,121 37,051,458 725,948 39,109,545 805,772 43,588,813 863,316 49,787,432 1,038,871 53,421,769 1,143,006 55,300,570 2,306,895 33,332,493 2,566,078 36,826,378 2,578,704 37,943,358 2,646,059 39,697,517 2,968,482 42,078,027 3,431,379 47,020,192 3,815,628 53,603,060 4,132,396 57,554,165 4,093,839 59,394,409 2,363,269 2,490,071 2,652,152 2,741,989 3,044,645 3,374,350 3,866,902 4,232,008 4,424,358 29,656,222 33,388,867 36,750,371 38,016,806 39,793,447 42,154,190 46,963,163 53,654,334 57,653,777 59,724,928 Additional Series D Pledged Taxes City Road Tax (.5%) 5,088,979 Total Series D Pledged Taxes $ 32,431,748 5,574,996 $ 36,600,594 6,417,376 $ 40,677,676 6,448,956 $ 41,813,610 6,617,396 $ 43,668,854 7,423,730 $ 46,533,275 8,581,364 $ 52,170,177 9,542,314 $ 59,329,746 10,334,503 $ 63,756,272 10,238,080 $ 65,538,650 Gross Excise Tax Pledged Revenues $ 36,850,981 $ 41,270,758 $ 45,733,825 $ 47,044,466 $ 49,056,902 $ 52,546,402 $ 58,975,906 $ 67,012,276 $ 72,120,676 $ 74,056,847 Total Series C Pledged Taxes The Series C Pledged Taxes consist of the Excise Taxes and the City Special Taxes. The Series D Pledged Taxes consist of the Excise Taxes and the City Road Tax. City of Yuma, Arizona Demographic and Economic Statistics Last Ten Calendar Years Building Permits 114 Year Population Personal Income Per Capita Personal Income 1998 149,065 $ 2,527,667 17 29.00% 247 $ 17,236,498 431 $ 37,795,329 1999 155,665 2,618,403 17 30.10% 241 25,249,505 633 26,625,914 2000 160,026 2,653,830 17 16.50% 186 24,818,824 466 49,925,047 2001 163,477 2,976,395 18 16.50% 343 42,381,125 568 60,363,660 2002 166,715 3,324,309 20 16.90% 313 29,383,982 576 66,248,737 2003 170,604 3,268,426 19 17.00% 999 141,020,407 685 98,696,100 2004 176,083 3,563,282 20 15.60% 1,300 146,866,298 942 153,018,563 2005 181,277 3,814,418 21 16.00% 1,022 97,832,497 1,655 202,887,750 2006 187,555 4,074,587 22 14.70% 1,057 229,391,979 1,568 148,285,471 2007 190,557 NA NA 13.90% 1,141 105,194,398 801 61,578,063 Note: Source: Commercial Residential Unemployment Rate No. Value No. Value Unemployment rate and population presented represents the Yuma Metropolitan Statistical Area and it reflects revised inputs, reestimation, and new statewide controls through 2006. Data for 2007 is not available. U.S. Department of Commerce Bureau of Economic Analysis U.S. Department of Labor Bureau of Labor Statistics Building permits: Department of Community Development (calendar year basis) City of Yuma, Arizona Principal Employers Current Year and Four Years Ago 2004 115 Employer Marine Corp Air Station U. S. Army Yuma Proving Ground Yuma Regional Medical Center Yuma School District #1 Yuma County Grower Company Salyer American Fresh City of Yuma Yuma Union High School District Dole Total 2007 Percentage of Total Employees Rank Employment 6,043 1,176 1,500 1,200 1,100 1,500 1,000 864 690 1,000 1 5 2 4 6 2 7 9 10 7 9.67% 1.88% 2.40% 1.92% 1.76% 2.40% 1.60% 1.38% 1.10% 1.60% 25.71% Source: Greater Yuma Economic Development Corporation Note: Figures presented represent the Yuma Metropolitan Statistical Area. Data from nine years prior as required for this table is not available. Current year represents calendar year 2007 which is the most recent data available. Employees Rank 6,156 1 3,000 2 1,995 3 1,700 4 1,416 5 1,200 6 1,000 7 998 8 925 9 879 10 Percentage of Total Employment 9.05% 4.41% 2.93% 2.50% 2.08% 1.76% 1.47% 1.47% 1.36% 1.29% 28.34% City of Yuma, Arizona Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2003 2004 1999 2000 2001 2002 2005 2006 2007 2008 148 170 179 182 188 195 195 208 226 228 182 104 193 109 206 113 212 113 228 103 229 105 237 105 252 110 267 122 269 122 24 43 10 98 44 34 687 22 47 11 112 48 35 747 21 47 13 121 49 35 785 22 48 13 124 48 36 798 22 48 13 125 54 37 818 25 48 13 129 55 41 840 30 50 15 128 59 45 864 32 52 15 136 64 48 917 37 51 16 141 73 52 985 44 47 16 145 75 52 998 Function General government 116 Public Safety Police Fire Streets Engineering Maintenance Solid Waste Parks and recreation Water Wastewater Total City of Yuma, Arizona Operating Indicators by Function Last Ten Fiscal Years 1999 2000 2001 2002 Fiscal Year 2003 2004 67,809 13,559 85,929 13,264 77,667 13,041 81,691 14,057 84,738 15,075 87,770 15,804 86,802 16,644 88,013 17,019 87,797 15,281 NA NA 6,536 1,296 6,806 950 7,581 1,659 8,443 1,747 8,774 1,121 9,205 1,182 10,032 1,774 10,094 1,850 10,862 2,030 NA NA 22 22 22 23 19 24 19 9 22 50,000 26,000 26,000 29,358 33,993 27,781 33,003 33,965 34,938 34,919 2,486 3,934 4,586 4,482 5,308 5,519 3,285 3,122 3,247 3,160 19,357 41.0 7.6 25,851 41.0 7.9 22,727 41.0 7.9 22,129 41.0 8.0 22,723 41.0 9 23,490 45.0 9.3 24,734 45.0 9 25,726 48.0 9.3 26,169 48.0 10 28,277 48.0 10 12.0 12.0 12.0 12.2 12.2 12.3 15.6 15.6 15.6 15.6 2005 2006 2007 2008 Function 117 Police Calls for service* Case reports* Fire Number of calls answered* Inspections* Streets Streets slurry sealed (miles) Solid Waste Refuse collected (tons)** Parks and recreation Ramada rentals Water Connections Daily treatment capacity (million gallons) Annual quantity processed (billion gallons) Wastewater Daily processing capacity (million gallons) NA Source: Various city departments. Note: Indicators are not available for the general government function. *Numbers presented are for calendar year. **Commercial collections ended in 1999 City of Yuma, Arizona Capital Asset Statistics by Function Last Ten Fiscal Years 2000 1999 2001 2002 2003 2004 2005 2006 2007 2008 Function 118 Public Safety Police stations Police vehicles Fire stations Streets Streets (miles) Streetlights Traffic Signals Solid Waste Collection trucks Parks and Recreation Parks acreage Parks/Athletic Fields Swimming pools Tennis courts Community centers Water Water mains (miles) Fire hydrants Wastewater Sanitary sewers (miles) 1 101 5 1 109 5 1 118 5 1 127 5 1 123 5 1 123 5 1 127 6 1 134 6 1 143 6 1 150 6 300 3,550 22 300 4,200 24 300 4,200 26 300 4,250 29 300 4,250 32 300 4,500 32 361 5,042 36 361 5,298 38 361 5,303 40 361 5,375 42 8 10 10 10 10 10 10 12 13 13 308 23 3 1 6 443 25 3 1 7 553 25 3 1 7 553 25 3 1 7 553 25 3 1 7 553 25 3 1 7 553 25 3 1 9 578 25 3 1 9 592 27 3 1 9 607 32 3 1 9 350 2,000 380 2,100 380 2,200 416 2,300 427 2,400 437 2,600 448 2,850 470 3,000 493 3,150 501 3,267 249 249 249 255 261 266 275 290 310 320 Sources: Various city departments. Note: No capital asset indicators are available for the general government function.