City of Yuma, Arizona Comprehensive Annual Financial Report For The Fiscal Year Ended June 30, 2009 City of Yuma Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 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 City Departments City Attorney Steven W. Moore Prepared by: Finance Department City Clerk Brigitta M. Kuiper Community Development Laurie L. Lineberry Donald (Pat) Wicks, CPA Director Wendy Wrenn, CPA Accounting Manager Sharon Willoughby Budget Coordinator Tahir Alhassan, CPA Minda Federmeyer Linda Johnson Accountants About the Cover: The cover presents a collage of two of Yuma’s premier winter events. The Annual Balloon Festival has grown with more participants each year over the last eighteen years while the Midnight at the Oasis attracts vintage cars and their drivers from all over the Western states. The three-day event boasts attendance in the tens of thousands annually for the car parade, concerts and fun. Cover Design: Daniel Venditelli, Jr. Finance Donald (Pat) Wicks Fire Department Jack McArthur, Chief Information Technology Laura S. Neinast Municipal Court Douglas S. Stanley, Judge Parks and Recreation Rebecca J. Chavez Police Department Jerry Geier, Chief Public Works Vacant 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 Telecommunications And Support Fleet Services FIRE DEPARTMENT Professional Services Streets Suppression Solid Waste Community Risk Reduction UTILITIES Emergency Medical Services Utility Treatment Special Operations Utility Systems Emergency Management ENGINEERING Engineering/Capital Improvement Projects City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2009 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 ix 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, 2009 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 Eight Fiscal Years Changes in Net Assets - Last Eight 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 Eight 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 August 20, 2009 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, 2009. 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, 2009, 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, 2009, 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 billion in revenues annually1. Several major agricultural companies, most notably Dole Food Company, maintain operations here. Their chief consumer products of packaged produce and salad mixes continue to be 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 conflicts in Iraq and Afghanistan 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. For the first time, sales tax has seen a decline for two years running, with the tax registering a drop of 7.4%. Tax data show that construction and large purchases are the larger areas of decline, reflecting the same recessionary pattern as the rest of the country. Planning for fiscal year 2010 anticipates no further reduction in sales tax collections. Millions Yuma’s continued as a regional retail and services center during 2009, although the city did see the same “big box” closures of nationally-recognized stores during the year. Contrary to that statistic, however, was that several hundred hotel rooms were added 25 to the area’s inventory during the year, including the opening of the 20 long-planned hotel and conference center on the city’s General Sales Tax riverfront. 15 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. 10 5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 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 2009, both the conference center and hotel opened for business on the riverfront. In addition, 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. The newly constructed hotel and conference center 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, has become a popular destination with local residents. East Mesa Development. Completion of the Desert Dunes wastewater treatment plant and near completion of the Agua Viva water treatment plant means the city is ready to manage the anticipated growth of the areas as the recession comes to the end of its cycle. 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 growth elsewhere in the city. 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. 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, 2008. This is the twenty-seventh 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, 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 viii 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, 2008 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. ix x FINANCIAL SECTION 1 2 3 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, 2009. 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 $17.7 million for the fiscal year, $5.3 million of which was generated by governmental activities while $12.4 million was due to business-type activities of the City. • The City’s combined net assets total $425.7 million at June 30, 2009. Of this amount, $65.7 million is available (unrestricted) to finance ongoing programs, $38.4 million in governmental programs and $27.3 million in business 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. 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 5 MANAGEMENT’S DISCUSSION AND ANALYSIS 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 $425.8 million at the close of the fiscal year. Governmental Activities Business-type Activities June 30, Net Assets 2009 (millions) Current and other assets Capital assets $ 127.2 291.8 2008 $ 160.6 265.9 2009 $ 65.9 337.6 Total 2008 $ 81.8 322.3 2009 $ 193.1 629.4 2008 $ 242.4 588.2 Total assets Long-term liabilities outstanding Other liabilities 419.0 426.5 403.5 404.1 822.5 830.6 149.1 31.9 156.9 36.9 208.3 7.5 218.4 10.4 357.4 39.4 375.3 47.3 Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets 181.0 193.8 215.8 228.8 396.8 422.6 129.2 70.4 38.4 238.0 169.4 18.0 45.3 232.7 158.4 2.0 27.3 187.7 151.0 0.2 24.1 175.3 287.6 72.4 65.7 425.7 320.4 18.2 69.4 408.0 $ $ $ $ $ $ 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 $425.7 million, up $17.7 million from the prior year. Governmental activities accounted for $5.3 million of the increase while business-type activities amounted to $12.4 million. Most of the increase would be attributable to capital asset acquisitions, particularly infrastructure, as governmental capital assets increased $25.9 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 Total revenues Governmental activities 2009 $ Business-type activities 2008 13.8 1.8 4.8 $ 2009 2008 $ Total 2009 2008 37.5 8.9 $ 52.7 1.8 14.7 $ 54.6 2.3 13.9 17.1 2.3 5.0 $ 38.9 9.9 8.9 36.8 3.0 31.3 3.9 2.9 8.2 39.5 2.9 32.8 2.6 4.8 1.1 2.0 8.9 36.8 3.0 31.3 3.9 4.0 8.2 39.5 2.9 32.8 2.6 6.8 107.2 115.2 49.9 48.4 157.1 163.6 11.6 41.1 16.0 16.3 4.9 5.5 6.6 - 11.9 38.5 18.9 14.4 4.6 5.8 5.3 - 20.8 13.8 2.8 18.4 13.3 2.9 11.6 41.1 16.0 16.3 4.9 5.5 6.6 20.8 13.8 2.8 11.9 38.5 18.9 14.4 4.6 5.8 5.3 18.4 13.3 2.9 102.0 99.4 37.4 34.6 139.4 134.0 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 $ 5.3 0.1 $ 15.9 (0.1) $ 12.4 (0.1) $ 13.7 $ 17.7 $ 29.6 For the fiscal year, net assets increased $17.7 million, with $5.3 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 $107.2 million for fiscal year 2009, down from 2008, mostly in charges for services and sales taxes. 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 65% of governmental revenues for the year, which is comparable to 2008. Charges for services, the third segment of governmental activities revenues, count building permits and inspections, fines, recreation fees, solid 8 MANAGEMENT’S DISCUSSION AND ANALYSIS waste environmental fees, police services and civic center rental fees among its largest sources. The charges for services category amounts to 13% of governmental revenues. Property taxes represent 8% 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 6.8% from 2008 showing that Yuma is not immune to the recession. Intergovernmental revenues dropped by $1.5 million or 4.5%. State-shared income taxes rose 6.7% from 2008, as anticipated, while state-shared sales taxes declined by 33% because of the state’s slowing economic output. State-shared gas tax slid by 13.6% as the state balanced its budget by reducing other entities’ revenue. Charges for services decreased by $3.3 million (19.3%) as the construction industry slowdown resulted in lower impact fee collections. RevenuesGovernmental Activities Franchise taxes 3% Sales taxes 34% Shared revenues 29% Property taxes 8% Unrestricted grants and contributions 4% Capital grants and contributions 4% Operating grants and contributions 2% Charges for services 13% Unrestricted investment earnings 3% Expenses Expenses and Program Revenues-Governmental Activities 45.0 40.0 35.0 Expenses Program Revenues 30.0 Millions Governmental expenses totaled $101.9 million for the fiscal year. Of the expenses, 40.3% or $41.1 million is related to public safety for police, fire and municipal court services. Parks, recreation and culture expenses amounted to $16.3 million, or 16.0%, while streets and community design and development expenses amounted to 15.7% and 5.4% respectively. Interest on long-term debt rose to $6.6 million, or 6.5% of governmental expenses. Overall, governmental 25.0 20.0 15.0 10.0 5.0 General government Public safety 9 Streets Parks, recreation and Environmental health culture and protection Community design and development Interest on long-term debt MANAGEMENT’S DISCUSSION AND ANALYSIS activities expenses rose 2.5%, or $2.51 million, over 2008. This increase reflects growth in Public Safety expenses, in part because of capital-like expenditures that were not capitalized. Parks expenses exceeded Streets as the city continues its aggressive infrastructure program. Interest on long-term debt also jumped because of the 2007 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 $38.9 million in charges for services, 94% 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 $9.9 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 2% of revenues for the City’s business activities. Revenues-Business-type Activities Capital grants and contributions 20% Charges for services 78% Investment earnings 2% 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 $20.7 million while wastewater expenses totaled $13.8 million. Desert Hills Golf Course and Arroyo Dunes Golf Course recorded expenses of $2.5 million and $.3 million, respectively, for a total of $2.8 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 itie 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 30 Expenses 25 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, 2009, is $70.5 million. This represents a $25.4 million decrease in fund balances. A review of some of the more significant funds follows. General Fund The fund balance of the General Fund declined by $3.1 million for the fiscal year. Revenues decreased by $3.1 million. Sales taxes, the city’s largest source of General Fund revenues, declined $1.5 million (7.5%) to $18.9 million as Yuma felt the effects of the world-wide recession. State-shared sales taxes showed an even steeper decline of 13.2%, down $1 million to $7.1 million. Although total expenditures dropped slightly to $59.8 million as the city reduced its capital and other discretionary expenditures to deal with its declining revenues, personal services expenditures caused both Public Safety and Parks and Recreation expenditures to increase for the year. Highway User Revenue Fund (HURF) This fund, which accounts for the expenditure of state-shared gasoline taxes, showed a decline in fund balance of $1.4 million for the year. The City’s portion of those taxes dropped by 14% for the fiscal year to $7 million. A significant portion of the decrease was the result of state legislature’s increasing its share unilaterally without regard to historic sharing of this important revenue source. As a result, the city reduced its discretionary expenditures and expenditures were reduced by 12% to $8.4 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 in 2009 to $9.5 million. Capital expenditures dropped in 2008, as the city concentrated its project expenditures for streets from bond proceeds. Grants Fund The City continues to receive much needed assistance from both the state and federal levels. During 2009, revenues reached $4.3 million including grants from Homeland Security for the Yuma Regional Communication System and from the Bureau of Reclamation for use in the Yuma Heritage Area. Community Redevelopment Fund The City continued to utilize, in part, its Community Development Block Grant funding for eligible street infrastructure improvements and for affordable housing rehabilitation, and its U.S. Department of Justice Weed and Seed Grant Program to help with operating the Martin Luther King Community Center in the Carver revitalization area. While Community Development Block Grant revenues increased 24% to $1.1 million for 2009, fund revenues overall declined as no state funding was received for the year. Debt Service Debt Service Fund expenditures increased slightly to $13.7 million as interest payments reflect a full-year payment on the new municipal property corporation bonds sold in fiscal 2008. Fund balance reflects debt service reserves accumulated in accordance with the development agreement for the Yuma Palms regional center. 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Capital Projects Fund The Capital Projects Fund’s fund balance dropped to $47 million this year as the city expended the proceeds of the 2007 bond sale. Capital expenditures decreased in this fund by some 46% from 2008 to $26.4 million as the city now records capital expenditures in the operating funds. Proprietary funds. The City’s enterprise funds posted an overall increase in net assets of $12.6 million for the fiscal year ended June 30, 2009. 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 $1.4 million or 6.5% for the year ending June 30, 2009. 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 26,868. Operating expenses rose by 2.5% and the fund produced operating income of $8.6 million. Revenues increases will continue to finance the completion of 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 operating revenues increased 1.8% over fiscal 2008. Rate-based charges increased 12% to $11.6 million; however, contractual revenues declined based on shared charges from lower capital expenditures. Operating expenses rose negligibly with income from operations of improving to $2.1million. 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 Lower operating expenses for Desert Hills helped more than offset the decline in operating revenues to reduce the fund’s operating loss for 2009. Operating expenses rose for Arroyo Dunes by 15% for the year leading to an operating loss of $33,939 for the year. Operating revenues for the year increased by 3% to $284,105. 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, 2009, can be found starting on page 55. A summary of that schedule follows: Original Final Actual Variance with Final $ 33,936,854 26,230,278 6,855,844 440,200 $ 33,936,854 26,230,278 6,855,844 440,200 $ 30,762,795 24,096,500 5,761,755 440,200 $ (3,174,059) (2,133,778) (1,094,089) - 67,463,176 67,463,176 61,061,250 (6,401,926) 67,361,703 4,990,609 67,584,979 4,990,609 59,777,740 4,412,641 7,807,239 577,968 72,352,312 72,575,588 64,190,381 8,385,207 (4,889,136) $ (5,112,412) $ (3,129,131) $ 1,983,281 Budget Revenues and Transfers In Taxes Intergovernmental Other Transfers In Total Expenditures and Transfers Out Expenditures Transfers Out Total Change in Fund Balance $ General Fund tax revenues didn’t meet expectations because of decreases in three key areas: city sales tax, state sales tax and building permits. Overall, General Fund revenues ended the year down $3.1 million. These 12 MANAGEMENT’S DISCUSSION AND ANALYSIS three areas contributed to the decline by $1.5 million, $1.1 million and $.9 million respectively. Each area decline can be attributed directly to the slowed economy and consumer’s unwillingness to spend rather than a direct change in the city’s economic base. Expenditures for the fund came in at $7.8 million under budget with the largest contributions coming from Public Safety at $2.5 million and General Government adding $1.6 million, although savings in budget occurred in most departments with the City’s drive to reduce expenditures throughout the year. Discretionary spending, particularly in elimination of merit-based wage increases, travel and capital expenditures, helped General Fund expenditures meet the decline in revenues. CAPITAL ASSETS At June 30, 2009, the City of Yuma’s investment in capital assets in both governmental and business-type activities amounted to $629.4 million, net of depreciation. This includes land, buildings, equipment, and infrastructure (roadways and bridges). Capital assets for governmental activities increased by 9.7% while business-type capital assets increased 4.8%. These changes included the following: • • • • The new Valley Aquatic Center, a project partnered with the Yuma Union High School District, was completed. Construction continued on the new East Mesa water treatment plant. The Araby Road project was completed. Infrastructure additions are for street lights and traffic signal installations. Change in Capital Assets (In Millions) Business-type Activities Governmental Activities July 1, 2008 Land Buildings Improvements Infrastructure Equipment Construction in Progress Accumulated Depreciation Total $ $ Net Additions/ Deletions 48.4 $ 66.8 37.5 156.0 46.0 56.5 (145.3) 265.9 $ June 30, 2009 4.7 $ 0.6 3.9 5.9 23.3 (12.5) 25.9 $ July 1, 2008 53.1 $ 66.8 38.1 159.9 51.9 79.8 (157.8) 291.8 $ Total Net Additions/ June 30, Deletions 2009 9.9 $ 8.0 148.6 4.5 235.9 (84.7) 0.1 $ 2.7 0.2 19.1 (6.7) 10.0 $ 8.0 151.3 4.7 255.0 (91.4) 322.2 15.4 337.6 $ $ $ 63.1 74.8 189.4 159.9 56.6 334.8 (249.2) 629.4 Additional information on capital assets can be found in Note II-E starting on page 42. DEBT ADMINISTRATION At June 30, 2009, after scheduled debt payments, governmental activity debt decreased to $149.1 million while business activity debt decreased to $208.4 million. 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 $139.9 million, well above the outstanding general obligation debt of $5.3 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. The City’s improvement district bonds were rated by Fitch Ratings as “A”. The 2007 Utility Series is rated “A”, while all other bond issues have been rated “A+” rating by Fitch. Moody’s Investor Services rates the bonds at “A3” while Standard and Poor’s rates the Series B at “AA-“ and the Series D and Utility Series at “A+”, respectively. With the exception of the improvement district bonds, all City bond issues are insured, and while the 13 MANAGEMENT’S DISCUSSION AND ANALYSIS 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 (Millions) Business-type Governmental activities activities 2009 General Obligation Bonds Yuma Municipal Property Corporation Bonds Net Unamortized Premium/Issuance Costs Improvement Districts Contracts Payable Compensated Absences Total Long-Term Debt $ - 2008 $ 2009 - $ 5.3 2008 $ 6.4 Total 2009 $ 5.3 2008 $ 6.4 136.9 144.1 123.1 127.9 259.9 272.0 1.1 7.8 3.3 $ 149.1 1.2 8.8 2.8 $ 156.9 3.5 76.5 $ 208.4 3.7 80.4 $ 218.4 4.6 7.8 76.5 3.3 $ 357.4 4.9 8.8 80.4 2.8 $ 375.3 ECONOMIC FACTORS Yuma County’s fast growth of the last decade has slowed somewhat with the advent of the recession. The county grew by an estimated 2,500 residents to 203,779 with the City of Yuma representing 46% of the county’s population. Since 2000, the City has grown by 31% to an estimated 93,719 at July 1, 2008, 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, contributing nearly $1 billion annually. The area’s 85,000-plus winter visitors add over $400 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 7.4% decrease this year, compared to its historic growth rate of 7%, and the first two-year decline in the history of the tax. This still compares more than favorably to the large metropolitan areas of the state. For fiscal year 2010, revenues were projected with no further projected reduction 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, 2009 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 $ 110,033,041 $ 17,114,501 (773,394) 729,982 88,308 Total 59,011,214 $ 169,044,255 5,904,275 23,018,776 773,394 231,852 961,834 12,022 100,330 132,910,033 158,893,465 418,995,936 265,114,731 72,508,907 403,556,395 398,024,764 231,402,372 822,552,331 3,084,338 5,665,935 3,308,309 19,794,240 1,993,573 1,028,117 4,428,183 85,079 5,077,911 6,694,052 7,736,492 19,879,319 7,120,000 141,966,841 180,939,663 8,211,778 200,146,072 215,892,802 15,331,778 342,112,913 396,832,465 129,228,397 158,367,372 287,595,769 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 542,899 1,951,980 2,494,879 3,615,891 3,615,891 64,169,174 64,169,174 2,061,370 2,061,370 38,438,542 27,344,241 65,782,783 $ 238,056,273 $ 187,663,593 $ 425,719,866 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, 2009 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 $ 11,559,335 $ 2,207,797 $ 41,080,532 2,493,089 15,966,116 - $ 495,003 - 16,281,716 1,224,006 26,863 4,969,074 1,829,409 24,109 5,486,436 6,018,327 1,261,429 6,591,623 - 101,934,832 13,772,628 20,754,300 13,858,508 2,818,932 23,049,476 13,506,734 2,403,623 37,431,740 38,959,833 $ 139,366,572 $ 52,732,461 $ Capital Grants and Contributions 1,807,404 Business-type Activities Total $ (9,351,538) $ 2,331,975 (35,760,465) (15,966,116) - $ (9,351,538) (35,760,465) (15,966,116) 1,502,223 (13,528,624) - (13,528,624) - (3,115,556) - (3,115,556) 949,000 2,742,320 - 2,742,320 - (6,591,623) - (6,591,623) (81,571,602) - (81,571,602) 4,783,198 - 3,272,479 6,651,591 - - 9,924,070 1,807,404 $ 14,707,268 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 (81,571,602) 8,856,121 36,856,900 3,013,453 31,330,044 3,894,606 2,872,484 86,823,608 95,234 86,918,842 5,347,240 232,709,033 5,567,655 6,299,817 (415,309) 11,452,163 11,452,163 1,044,962 1,044,962 (95,234) 949,728 12,401,891 175,261,702 5,567,655 6,299,817 (415,309) 11,452,163 (70,119,439) 8,856,121 36,856,900 3,013,453 31,330,044 3,894,606 3,917,446 87,868,570 87,868,570 17,749,131 407,970,735 $ 238,056,273 $ 187,663,593 $ 425,719,866 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, 2009 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 $ $ 15,470,153 $ - 976,269 - 540,505 2,668,045 20,169 315,325 89,118 1,810,442 177,470 84,980 21,176,207 $ 123 636,534 2,455 506 1,615,887 City Road Tax $ $ Grants 2,040,535 24,161 692,112 14,116 2,770,924 $ $ 1,450,446 449 1,450,895 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 $ 865,191 4,097,836 123,952 333,551 5,420,530 $ 177,470 84,980 - $ 122,212 264,802 387,014 $ 76,351 87,647 336,862 500,860 $ 276,331 30,348 487,223 656,993 1,450,895 506 - - - 625,163 1,413,914 1,606,335 - - - 106,493 - - - - 11,741,322 15,755,677 1,228,367 1,228,873 21,176,207 $ 1,615,887 The accompanying notes are an integral part of these financial statements. 22 2,270,064 2,270,064 $ 2,770,924 $ 1,450,895 Community Redevelopment Debt Service $ $ $ $ $ - Capital Projects Other Nonmajor Governmental Funds Total 703,103 $ 9,240,975 57,587,884 $ - 3,612,251 - $ 80,390,195 9,240,975 1,199,651 399,821 1,599,472 7,840,000 2,396 $ 17,786,474 $ 174,682 251,955 37,534 175,699 58,227,754 $ 286,653 302,643 17,921 7,634 495 4,227,597 2,225,775 6,401,556 7,860,169 315,325 163,989 1,986,141 185,104 85,981 $ 108,855,210 22,018 22,232 370,048 1,185,174 1,599,472 $ 266 $ 6,095,000 3,308,309 7,840,000 17,243,575 1,176,802 $ 9,701,825 10,878,627 295,876 127,260 363,267 55,158 841,561 - 542,899 - - - - - - 542,899 1,599,472 $ 17,786,474 $ 7,634 495 - 47,349,127 - - - $ 2,835,047 4,630,125 6,095,000 1,220,538 3,308,309 123,952 20,109,563 38,322,534 185,104 85,981 542,899 47,974,290 1,413,914 1,606,335 50,000 106,493 50,000 47,349,127 3,327,907 3,386,036 11,741,322 6,826,338 70,532,676 58,227,754 $ 4,227,597 $ 108,855,210 23 City of Yuma, Arizona Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets June 30, 2009 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. $ 70,532,676 278,988,506 315,323 (3,288,772) (130,755,000) (4,380,000) (3,460,000) (1,108,069) 31,211,609 $ 238,056,273 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, 2009 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 Capital Projects: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Safety Debt Service Principal Interest and Fiscal Agent Fees Total Expenditures 9,575,444 36,079,453 8,961,007 1,299,457 6,908,363 - 38,779 132,560 - 1,455,391 3,762,606 1,057,587 75,777 - 1,670,714 Fund Balances - Beginning $ 461,040 16,733 8,416,157 5,816,834 4,402,186 (1,345,539) 4,810,014 (17,227) 3,403 (4,793,998) (4,790,595) 17,227 17,227 (3,129,131) (1,432,259) 18,884,808 2,661,132 1,228,873 The accompanying notes are an integral part of these financial statements. 26 2,807,390 - 4,323,325 4,786 56,848 4,384,959 1,289 417,474 339,404 40,141 - 14,421 (101,141) (86,720) $ 9,479,279 $ 579,494 568,075 10,626,848 2,898,771 110,673 440,200 (4,412,641) (3,972,441) 15,755,677 $ - 843,310 Net Change in Fund Balances Fund Balances - Ending 7,029,312 11,375 29,931 7,070,618 59,777,740 Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) Grants 30,762,795 $ 1,362,658 24,096,500 2,179,242 1,237,672 700,395 281,788 60,621,050 57,356 28,164 217,344 - Revenues Over/(Under) Expenditures City Road Tax $ 19,419 - 2,250,645 - 2,270,064 $ - Community Redevelopment $ 1,221,363 20,344 83,863 1,325,570 Debt Service $ 949,000 355,511 1,304,511 $ 4,910,728 942,087 612,565 6,465,380 $ Total Governmental Funds 8,328,015 $ 394,161 1,822,718 694,731 40,066 69,357 11,349,048 48,570,089 1,362,658 37,064,661 8,912,688 1,237,672 949,000 3,308,723 96,914 1,645,579 103,147,984 - - - 68,507 2,879,014 9,575,444 37,908,457 9,715,753 11,856,754 - - - 3,154,187 4,780,917 - - 354,871 95,232 5,369,809 2,903,015 423,598 1,330,680 20,062,406 4,080,898 576,620 749,573 142,288 253,225 658,896 16,311 1,272,193 1,918,606 23,938,918 4,997,279 703,604 7,075,000 6,646,000 13,721,000 26,474,202 8,372,104 7,075,000 6,646,000 128,661,749 (355,956) (12,416,489) (20,008,822) 2,976,944 (25,513,765) 355,956 355,956 12,430,206 12,430,206 (373,780) (373,780) 2,951,884 (6,436,503) (3,484,619) 16,213,297 (16,118,063) 95,234 - 13,717 (20,382,602) (507,675) (25,418,531) - 529,182 67,731,729 3,893,711 542,899 $ 47,349,127 $ 3,386,036 1,252,332 3,705 40,377 385,112 1,681,526 $ Capital Projects Other Nonmajor Governmental Funds - $ 27 95,951,207 $ 70,532,676 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, 2009 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-governmental funds $ 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 (25,418,531) 62,363 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 (10,865,621) 35,733,615 (3,669,421) 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 7,075,000 Increase in compensated absences expense not recorded in governmental funds (458,968) The net effect of miscellaneous transactions involving capital assets (trades of land for rights-of-way) is to decrease net assets. (386,698) Investment earnings of the internal service funds are general revenues on the statement of activities 384,851 Interest payments accrued in government-wide statements are not recorded in governmental activities until paid 54,377 Net revenues of internal service funds in excess of expenses reduce governmental activities expenses on the statement of activities (1,058,333) 3,894,606 Contributions of infrastructure assets are not recorded as revenues in the governmental funds $ Change in net assets of governmental activities The accompanying notes are an integral part of these financial statements. 28 5,347,240 City of Yuma, Arizona Statement of Net Assets Proprietary Funds June 30, 2009 Business-Type Activities-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 Unrestricted Current Assets Restricted Assets: Cash and Investments: Cash with Fiscal Agents Current Debt Service Advancement for Future Expansion Customer Deposits Total Restricted Current Assets Total Current Assets Noncurrent Assets: Capital Assets: Land Buildings Improvements Other than Buildings Equipment Construction In Progress Less Accumulated Depreciation Total Capital Assets Total Noncurrent Assets Total Assets Liabilities Current Liabilities Payable from Current Assets: Accounts Payable Accrued Payroll and Related Taxes Current Portion-Long-Term Contracts-Principal Current Portion-Bonds Payable Estimated Claims and Judgements Due to Other Funds Accrued Interest Payable Unearned Revenue Total Current Liabilities Payable from Current Assets Current Liabilities Payable from Restricted Assets: Accounts Payable Deposits Unearned Revenue Current Portion-Long-Term Contracts-Principal Current Portion-Long-Term Contracts-Interest Current Portion-Bonds Payable Accrued Interest Payable Total Current Liabilities Payable from Restricted Assets Total Current Liabilities Noncurrent Liabilities: Long-Term Contracts Payable Bonds Payable Unamortized Premium/Issuance Costs Total Noncurrent Liabilities Total Liabilities Net Assets Invested in capital assets, net of related debt Restricted: Debt Service Unrestricted Total Net Assets Water Fund Wastewater Fund $ 30,426,749 $ 4,483,242 3,905,786 712 49,616 137,599 4,187 34,524,649 Other Funds $ Totals Governmental Activities Internal Service Funds 266,763 $ 35,176,754 1,851,408 61,960 28,789 85 6,425,484 4,944 411 649 94,253 7,750 374,770 5,762,138 63,083 79,054 231,852 12,022 41,324,903 78,755 30 68,902 544,878 2,327 21,096,763 6,065,517 1,338,558 4,181,496 400,097 11,985,668 46,510,317 1,811,778 10,037,014 11,848,792 18,274,276 374,770 7,877,295 1,338,558 14,218,510 400,097 23,834,460 65,159,363 21,096,763 1,539,241 2,911,198 84,545,269 2,680,989 158,614,264 (53,740,726) 196,550,235 196,550,235 243,060,552 8,535,656 1,931,133 63,699,051 1,770,675 96,425,570 (33,880,393) 138,481,692 138,481,692 156,755,968 10,074,897 7,945,196 151,259,987 4,780,563 255,039,834 (91,476,839) 337,623,638 337,623,638 402,783,001 219,610 19,251 189,631 29,773,447 (17,386,947) 12,814,992 12,814,992 33,911,755 3,102,865 3,015,667 328,899 (3,855,720) 2,591,711 2,591,711 2,966,481 $ 20,401,871 458,734 519,596 41,628 2,581,700 2,325,344 5,927,002 214,563 351,389 189,393 680,800 736,107 2,172,252 50,670 157,132 50,551 258,353 723,967 1,028,117 231,021 3,262,500 3,061,451 50,551 8,357,607 125,339 160,587 875,223 765,603 1,926,752 832,283 400,097 10,000 1,918,841 723,740 907,500 96,418 4,888,879 10,815,881 37,226 24,528 1,891,916 546,574 2,500,244 4,672,496 258,353 869,509 400,097 34,528 3,810,757 1,270,314 907,500 96,418 7,389,123 15,746,730 1,926,752 38,192,233 96,540,100 2,710,418 137,442,751 148,258,632 34,239,451 27,629,900 833,970 62,703,321 67,375,817 258,353 72,431,684 124,170,000 3,544,388 200,146,072 215,892,802 1,926,752 77,436,133 78,339,528 2,591,711 158,367,372 12,814,992 1,503,025 15,862,762 $ 94,801,920 448,955 10,591,668 $ 89,380,151 116,417 $ 2,708,128 1,951,980 26,570,847 186,890,199 19,170,011 31,985,003 Adjustment to reflect consolidation of internal service fund activities related to enterprise funds 773,394 $ 187,663,593 Net assets of business-type activities The accompanying notes are an integral part of these financial statements. 29 $ City of Yuma, Arizona Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For the Year Ended June 30, 2009 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 22,462,859 $ $ 245,742 13,371,554 Other Funds - Totals $ 22,462,859 245,742 13,371,554 Governmental Activities Internal Service Funds $ - 313,937 778 23,023,316 25,218 13,396,772 2,026,950 371,242 2,398,192 339,155 2,026,950 371,242 778 38,818,280 1,385,415 5,766,092 7,151,507 10,652,164 3,734,343 14,386,507 8,516,595 2,754,295 11,270,890 2,528,108 242,314 2,770,422 21,696,867 6,730,952 28,427,819 5,941,749 2,551,065 8,492,814 8,636,809 2,125,882 10,390,461 (1,341,307) 806,111 (2,296) (6,220,591) 26,160 235,847 (2,529,449) 109,962 3,004 5,431 1,044,962 (2,296) (8,750,040) 141,553 384,851 31,389 - (5,390,616) (2,183,640) 8,435 (7,565,821) 416,240 3,246,193 (372,230) (57,758) (363,795) 2,824,640 (925,067) 3,272,479 (62,189) 6,651,591 (33,045) 234,659 (234,659) 9,924,070 234,659 (329,893) - Change in Net Assets 6,456,483 6,560,788 (363,795) Net Assets - Beginning 88,345,437 82,819,363 Capital Contributions Transfers In Transfers Out Net Assets - Ending $ 94,801,920 $ 89,380,151 $ 12,653,476 3,071,923 32,910,070 2,708,128 $ (251,585) Adjustment for consolidation of internal service fund activities related to enterprise funds $ Change in net assets of business-type activities The accompanying notes are an integral part of these financial statements. 30 (925,067) 12,401,891 31,985,003 City of Yuma, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2009 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 Other Funds Totals $ 23,189,118 $ 13,488,483 $ 2,397,189 $ 39,074,790 (4,217,416) (2,675,392) (1,143,220) (8,036,028) (6,288,674) (5,818,286) (1,357,741) (13,464,701) 26,160 109,962 5,431 141,553 12,709,188 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 Flow from Capital and Related Financing Acitivities: Contributions of Capital Acquisition and Construction of Assets Proceeds from Sale of Capital Assets 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 5,104,767 17,715,614 7,202,490 (1,242,513) (206,778) (4,403,433) 1,349,766 234,659 (234,659) 234,659 (329,893) (62,189) (33,045) - (95,234) (87) 2,498,994 (18,063,097) (4,823,924) (1,960,469) (6,433,630) 4,948,648 (4,301,445) (1,112,050) (2,014,606) (2,622,690) (50,000) - 7,447,642 (22,414,542) (5,935,974) (3,975,075) (9,056,320) (3,800,828) 38,190 - (28,782,126) (5,102,143) (50,000) (33,934,269) (3,762,638) 4,174 4,174 1,302,835 1,302,835 1,014,904 1,014,904 283,757 283,757 (15,120,223) 253,336 16,078,698 8,636,809 $ 2,125,882 $ Adjustments to Reconcile Operating Income/(Loss) Depreciation and Amortization Expense 3,734,343 2,754,295 (Increase)/Decrease in Accounts Receivable 161,580 201,275 (Increase)/Decrease in Inventories 6,943 (Increase) in Deposits 5,600 (Increase)/Decrease in Prepaid Items (4,187) 219 Increase/(Decrease) in Accounts Payable 18,432 (17,105) Increase in Accrued Payroll and Related Taxes 116,940 39,802 (Decrease) in Claims Incurred but Not Reported Increase/(Decrease) in Customer Deposits 6,568 (109,563) 26,160 109,962 Other Operating Activity Revenue 4,072,379 2,978,885 Total Adjustments $ 12,709,188 $ 5,104,767 $ 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 $ (33,045) $ 42,412,417 $ 16,332,034 $ Reconciliation of Operating Income/(Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss) $ (98,341) Internal Service Funds (62,189) 57,532,640 Cash and Cash Equivalents, July 1 Cash and Cash Equivalents, June 30 Wastewater Fund (87) - 441,017 441,017 (144,167) (15,011,054) (1,971,942) 410,930 74,022,268 22,373,813 266,763 $ 59,011,214 $ 20,401,871 (372,230) $ 10,390,461 $ (1,341,307) 6,730,952 362,424 2,085 5,600 (3,560) 15,192 2,551,065 52,201 18,944 (1,280) (162,484) 174,475 (103,568) 141,553 7,325,153 17,715,614 23,736 208,891 2,691,073 1,349,766 242,314 (431) (4,858) 408 13,865 17,733 (573) 5,431 273,889 (98,341) $ $ 840,129 $ 36,929 $ 1,702,944 1,900,177 - $ 877,057 3,603,121 $ - 2,543,073 $ 1,937,106 $ - $ 4,480,178 $ - The accompanying notes are an integral part of these financial statements. 31 32 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 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, 2009 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. 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. Wastewater Fund – This enterprise fund accounts for the City’s wastewater collection and treatment system. 34 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 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, 2009 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) 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, 2009 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, 2009, the estimated amounts of unbilled revenues for the Water and Wastewater Enterprise Funds and the Solid Waste Special Revenue Fund are $2,561,594, $1,060,930, and $170,273, 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, 2009 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, $2,598,676 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 $277,008, $199,268, $86,097 and $8,512 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, 2009, the amount accumulated in sick pay and related benefits is $7,740,811, including $187,284 attributable to Internal Service Funds and $1,032,359 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, $690,095, 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 $19,246 and Water, Wastewater, and Desert Hills and Arroyo Dunes Golf Course Enterprise Funds of $60,486, $41,241, $15,043 and $1,453 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, 2009 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, 2009, the City’s deposits had a carrying value of $180,307 and a bank balance of $615,117. 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, 2009, there are no deposits exposed to custodial credit risk. The petty cash and change fund balances totaled $25,960. 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, 2009 were as follows: Investment Type Commercial Paper US Agencies: Federal Home Loan Bank Federal Home Loan Mtg. Corp. Federal National Mtg. Assoc. Money Market Funds State Investment Pool Total Value Fair Value $ $ Investment Maturities in Years < 1 Year 1-2 Years 2-3 Years 2,493,854 $ 2,493,854 $ - $ - 3-5 Years $ - 15,656,067 6,999,626 6,665,191 1,991,250 17,180,079 2,028,378 13,156,753 1,994,948 28,629,667 1,025,000 25,731,854 1,872,813 75,570,457 75,570,457 29,350,387 29,350,387 168,880,511 $ 117,467,702 $ 45,553,798 $ 1,991,250 $ 3,867,761 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; 4. Commercial paper rated A-1/P-1; 39 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 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, 2009, 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% 37% 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% 1% Maximum per issuer...........................................................................10% of total C. P 1% Repurchase Agreements.............................................................................................. 100% 0% Money Market Funds.................................................................................................... 100% 45% State Investment Pool .................................................................................................. 100% 17% 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 three years which represents 2.29% of the portfolio, and there are no holdings with a stated maturity beyond five years. The portfolio at June 30, 2009 had a weighted average maturity of 286 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 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 40 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 November and May, respectively. Liens are filed when taxes are delinquent for two years. Assessed values, levies and collections for fiscal year 2007-08 (Tax Year 2007) and fiscal year 2008-09 (Tax Year 2008), follow: Tax Year 2007 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 $ $ $ $ $ $ 481,651,142 1.6744 8,064,476 572,280,942 None 7,890,159 136,702 252,962 Tax Year 2008 $ $ $ $ $ $ 560,857,139 1.5570 8,732,640 699,754,765 None 8,402,121 143,441 315,325 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 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 Intergovern- Special Property Accrued Accounts mental Assessments Taxes Interest 540,505 123 24,161 1,199,651 174,682 3,905,786 1,851,408 286,653 4,944 78,755 $ 8,066,668 $ 2,668,045 636,534 692,112 1,450,446 399,821 251,955 712 61,960 302,643 411 30 $ 6,464,669 $ Allowance Amount 2009 Special Revenue Funds Solid Waste Enterprise Funds: Water Wastewater $ 2008 5,527 121,404 51,855 $ 5,358 105,786 43,318 41 $ $ 20,169 7,840,000 7,860,169 $ 315,325 $ 315,325 $ 89,118 2,455 14,116 449 2,396 37,534 49,616 28,789 17,921 649 68,902 $ 311,945 Total $ 3,633,162 639,112 730,389 1,450,895 1,599,472 7,842,396 464,171 3,956,114 1,942,157 607,217 6,004 147,687 $ 23,018,776 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 D. Due from Other Governments (Intergovernmental Receivables) Amounts due from other government units at June 30, 2009, 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 F unds Public Safety Tax Solid Waste Recreation Complex Mall Maintenance Enterprise Funds: Major Funds Water Wastewater Non-major Funds Desert Hills Golf Course Internal Service Funds Equipment Maintenance Total $ 1,450,446 399,821 - $ - 2,273,730 630,075 692,112 251,955 276,751 15 - 390,784 6,459 - $ 3,531 - 5,130 20,747 - 712 - - 16,286 - 411 - - 30 1,895,941 $ 4,125,791 $ $ 712 61,960 411 30 - 423,120 $ 19,817 2,668,045 636,534 692,112 1,450,446 399,821 251,955 276,751 15 5,130 20,747 - 45,674 $ $ $ 6,464,669 E. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2009, follows: Balance June 30, 2008 $ 48,432,815 56,528,475 Increases $ 5,225,222 23,482,480 Decreases $ 513,238 245,721 Balance June 30, 2009 $ 53,144,799 79,765,234 104,961,290 28,707,702 758,959 132,910,033 Other Capital Assets: Buildings Improvements Infrastructure Equipment Total Other Capital Assets 66,823,452 37,460,440 156,027,900 45,950,394 306,262,186 659,972 3,894,605 6,869,944 11,424,521 917,359 917,359 66,823,452 38,120,412 159,922,505 51,902,979 316,769,348 Less Accumulated Depreciation for: Buildings Improvements Infrastructure Equipment Total Accumulated Depreciation 19,607,774 16,604,852 82,084,216 27,072,913 145,369,755 2,191,904 3,110,454 3,820,895 4,293,433 13,416,686 910,558 910,558 21,799,678 19,715,306 85,905,111 30,455,788 157,875,883 160,892,431 (1,992,165) 6,801 158,893,465 $ 765,760 $ 291,803,498 Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated Other Capital Assets, Net Total Capital Assets, Governmental Activities $ 265,853,721 42 $ 26,715,537 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 Government activities capital assets net of accumulated depreciation at June 30, 2009, include: General Capital Assets, Net Internal Service Fund Capital Assets, Net Total $ 278,988,506 12,814,992 $ 291,803,498 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 $ 1,501,709 2,341,743 2,936,930 34,487 101,952 3,948,800 2,551,065 Total $ 13,416,686 Business-type activities: Balance June 30, 2008 Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated $ Other Capital Assets: Buildings Improvements Equipment Total Other Capital Assets 9,985,297 235,900,810 245,886,107 $ Increases Decreases 89,600 19,139,024 19,228,624 $ - Balance June 30, 2009 $ 10,074,897 255,039,834 265,114,731 7,945,196 148,647,734 4,532,097 161,125,027 2,612,253 257,101 2,869,354 8,635 8,635 7,945,196 151,259,987 4,780,563 163,985,746 Less Accumulated Depreciation for: Buildings Improvements Equipment Total Accumulated Depreciation 4,606,679 77,117,598 3,027,949 84,752,226 198,822 6,233,580 298,550 6,730,952 6,339 6,339 4,805,501 83,351,178 3,320,160 91,476,839 Other Capital Assets, Net 76,372,801 (3,861,598) 2,296 72,508,907 2,296 $ 337,623,638 Total Capital Assets, Business-type activities $ 322,258,908 $ 15,367,026 $ Depreciation was charged to programs as follows: Water Wastewater Golf courses Total $ $ 3,734,343 2,754,296 242,313 6,730,952 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). 43 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 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, which requires the following disclosures. 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, 2009, active ASRS members and the City were required by statute to contribute at the actuarially determined rate of 9.45 percent (8.95 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, 2009, 2008, and 2007 were $2,684,557, $2,619,640, and $2,403,198, 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 28 percent, respectively, of the members’ annual covered payroll. The City’s contributions to EORP for the years ended June 30, 2009, 2008 and 2007 were $65,134, $44,206, and $40,782, respectively, which were equal to the required contributions for the year. Agent plans - For the year ended June 30, 2009 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 19.67 percent for police and 26.74 percent for fire. Funded Status and Funding Progress – Funding progress of the two agent plans as of June 30, 2008, the most recent valuation, appears below. Actual Value of Actuarial Accrued Funding Liability Plan Assets POLICE FIRE $ 40,781,540 $ 27,991,354 Liability 55,369,298 44,521,592 (Excess) $ 14,587,758 16,530,238 44 Annual Unfunded Liability Funded Covered as Percentage of Ratio Payroll Payroll 73.7% $ 9,619,242 62.9% 6,081,510 151.7% 271.8% City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Annual Pension Cost - The City’s pension cost for the two agent plans for the year ended June 30, 2008 (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 19.67% $1,421,698 $1,421,698 June 30, 2008 Entry Age 26.74% $1,321,441 $1,321,441 June 30, 2008 Entry Age 8.50% 5.5% - 8.5% 5.00% None Level Percentage Open 20 years Smoothed market 8.50% 5.5% - 8.5% 5.00% 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 2006 2007 2008 2006 2007 2008 $ 828,088 1,134,675 1,421,698 825,129 1,120,319 1,321,441 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, 2009: Governmental activities: Yuma Municipal Property Corporation Improvement District #67 Improvement District #68 Unamortized Discount/Issuance Costs Unamortized Premium 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, 2008 Additions Retirements Balance June 30, 2009 Due Within One Year $ 144,100,000 $ 5,150,000 3,670,000 (548,219) 1,710,665 2,829,801 598,268 $ 7,250,000 $ 136,850,000 $ 6,095,000 770,000 4,380,000 805,000 210,000 3,460,000 220,000 (35,658) (512,561) 90,035 1,620,630 139,297 3,288,772 - $ 598,268 $ 8,423,674 1,170,000 $ 5,250,000 $ 1,210,000 4,835,000 123,090,000 2,960,000 (76,049) (692,839) 184,227 4,237,227 3,906,051 76,473,462 4,041,778 $ 156,912,247 $ 6,420,000 $ 127,925,000 (768,888) 4,421,454 80,379,513 - $ $ - $ 10,019,229 $ 149,086,841 $ 7,120,000 Total Business-type Activity Long-Term Liabilities $ 218,377,079 45 $ 208,357,850 $ 8,211,778 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 On the Statement of Net Assets, the current portion of governmental activity long-term liabilities of $7,120,000 excludes the current portion of compensated absences of $2,190,126 that is recorded within accrued liabilities. 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 The following is a description of bonded indebtedness at June 30, 2009. 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 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 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. 46 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 The Municipal Property Corporation issued a Utility Series in 2007. 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, 2009, the pledged revenues described above amounted to $69,240,060 for governmental activities and $45,045,809 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, 2009, debt service for governmental activities totaled $13,721,000 and for business-type activities $17,069,996, or 20% and 38% of pledged revenues, respectively. Summary of Bonded Debt Interest Rate General Obligation Bonds: 1997 Refunding Yuma Municipal Property Corporation Bonds: 2001 Issue 2003 - Series A Refunding 2003 - Series B Refunding 2003 - Series C Refunding 2003 - Series B Addition 2007 - Series B 2007 - Series D 2007 - Series Utilities Total MPC Bonds Issue Date Maturity Date 4.90% 12/1/1997 2012 4.94% 4.21% 3.67% 2.97% 4.18% 4.50% 4.50% 4.50% 3/21/2001 2/18/2003 2/18/2003 2/18/2003 2/18/2003 11/20/2007 11/20/2007 11/20/2007 2025 2015 2015 2010 2022 2027 2027 2032 Total Bonds Authorized and Issued Authorized and Issued $ 8,085,000 34,150,000 14,640,000 2,905,000 1,445,000 9,000,000 30,785,000 61,100,000 127,925,000 Outstanding $ 5,250,000 281,950,000 30,370,000 9,470,000 1,835,000 445,000 7,175,000 29,335,000 58,220,000 123,090,000 259,940,000 $ 290,035,000 $ 265,190,000 Net Unamortized Premium/ (Issue Costs) $ (68,389) (64,639) (173,213) 1,345,921 3,612,777 4,720,846 $ 4,652,457 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, 2009 follows: Water, Etc. (20%) Secondary Assessed Valuation All Other (6%) $699,754,765 Legal Limit Outstanding G.O. Debt $ 139,950,953 5,250,000 $ 41,985,286 - Available Debt Margin $ 134,700,953 $ 41,985,286 47 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 Annual Debt Service Requirements to Maturity BONDS AND IMPROVEMENT DISTRICTS 1997 Refunding Bonds July 1 Interest Principal Improvement District No. 67 Bonds Total Principal Interest Total 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 17,575 967,575 $ - 5,250,000 $ 657,450 $ 5,907,450 $ 4,380,000 MPC Bonds 2001 Series $ 418,472 $ 4,798,472 MPC Bonds 2003 Series Improvement District No. 68 Bonds 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 - - - - - - $ 30,370,000 $ 15,916,075 $ 46,286,075 $ MPC Bonds 2003 Refunding 1995A 7,175,000 $ 2,547,947 $ 9,722,947 $ MPC Bonds 2003 Refunding 1995B 3,460,000 $ 1,145,390 $ 4,605,390 MPC Bonds 2003 Refunding 1995C 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 62,400 1,560,000 $ 9,470,000 $ 1,689,430 1,622,400 $ 11,159,430 295,000 $ 1,835,000 14,750 $ 48 304,128 309,750 $ 2,139,128 $ 445,000 $ 21,776 $ 466,776 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 BONDS AND IMPROVEMENT DISTRICTS July MPC Bonds 2007 Series B 1 Principal MPC Bonds 2007 Series D Interest Total Principal MPC Bonds 2007 Series Utility Interest Total Principal Interest Total 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 8,520,000 2030 - - - - - - 7,365,000 1,155,000 2031 - - - - - - 7,695,000 786,750 8,481,750 2032 - - - - - - 8,040,000 402,000 8,442,000 $ 123,090,000 $ 87,566,781 $ 210,656,781 $ 29,335,000 $ 14,335,572 $ 43,670,572 $ 58,220,000 $ 31,343,325 $ 89,563,325 CONTRACTS PAYABLE July WIFA Loan #920069-03 Interest WIFA Loan #910043-03 Interest Total 454,747 262,753 717,500 2,081,310 1,202,580 3,283,890 1,505,711 1,180,533 2,686,244 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 Principal Total Principal WIFA Loan #920088-04 2009 1 Interest Total Principal 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 2023 - - - - - - 2,521,694 145,490 2,667,184 2024 - - - - - - 2,616,825 49,092 2,665,916 32,216,946 $ 10,611,036 $ 7,935,756 $ 2,109,245 $ 10,045,001 $ 36,320,760 $ 49 9,653,699 $ 45,974,459 $ $ 42,827,981 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 H. Interfund Transfers Transfers Out General Fund HURF Road Tax Capital Projects Public Safety Tax Solid Waste Two Percent Tax Debt Service Debt Service Recreation Complex General Fund Desert Hill G.C. Total Governmental Activities Desert Hills G.C. Water Wastewater Transfers In Governmental funds - major funds: General Fund Solid Waste $ 1,345,700 HURF Mall Maintenance 106,184 Road Tax Debt Service 2,959,831 Grants Grant Fund 926 Debt Service 101,141 Community Redev Grants 16,301 Debt Service Debt Service 4,777,697 HURF 14,421 Road Tax 3,403 Grants 355,956 Debt Service Debt Service Debt Service Total Enterprise Funds Two Percent Tax $ Capital Projects Capital Projects General Fund Road Tax Capital Projects General Fund HURF Road Tax Public Safety Tax Solid Waste Desert Hills G.C. Wastewater Water 440,200 14,421 3,403 926 16,301 355,956 2,959,831 101,141 4,777,697 4,240,722 20,922 234,659 33,045 62,189 General Fund Two Percent Tax General Fund 1,345,700 1,500,000 106,184 Total Governmental Activities 16,213,297 Nonmajor funds: Solid Waste 4,240,722 Recreation Complex 20,922 Mall Maintenance 1,500,000 440,200 234,659 16,118,063 Enterprise funds: Desert Hills G.C. 234,659 62,189 33,045 329,893 Total Transfers Out $ 16,447,956 Two Percent Tax 234,659 Total Enterprise Funds 234,659 Total Transfers In $ 16,447,956 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 ($1,345,700) and Mall Maintenance ($106,184); 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 ($234,659). 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 $95,234 are for debt service. 50 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2009 I. Interfund Receivables and Payables Interfund balances at June 30, 2009, follow: Interfund Receivable Major Funds Interfund Payable Major Governmental Funds: Community Redevelopment Fund Grants Fund Nonmajor Governmental Funds: Public Safety Tax Fund Solid Waste Fund Mall Maintenance Fund Internal Service Funds: Equipment Maintenance Workers Compensation Total Receivable Capital Projects General $ 370,048 311,524 $ 240,000 108,267 15,000 495,603 270,000 $ 1,810,442 175,699 - $ 175,699 Total $ 370,048 487,223 240,000 108,267 15,000 495,603 270,000 $ 1,986,141 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, $773,394, 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 - $47,974,290 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 - $1,606,335 includes sales tax rebates of $1,106,066, 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, $106,493 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, 2009 Insurance Reserve Fund Fiscal Year 2008-09 2007-08 2006-07 Beginning of Year Liability $ 30,347 34,660 29,331 Claims and Changes In Estimates $ Workers Compensation Fund End of Year Liability Claim Payments 109,096 $ 22,527 118,661 115,303 26,840 113,332 $ 24,140 30,347 34,660 Beginning of Year Liability Claims and Changes In Estimates Claim Payments End of Year Liability $ 635,985 818,060 663,933 $ 1,032,587 4,433 761,715 $ 817,489 186,508 607,588 $ 851,083 635,985 818,060 L. Construction Commitments The City has active construction projects as of June 30, 2009. At year-end the government’s commitments with contractors for specific projects are as follows: Construction Comm itments Original Contract Public Safety Parks & Recreation Environmental Health Streets Water System Wastewater Spent to Date 3,751,790 9,143,603 845,154 33,730,565 23,035,153 1,058,200 $ 71,564,465 Remaining Commitment 3,748,692 8,461,626 773,685 26,825,488 21,084,066 498,765 $ 61,392,322 3,098 681,977 71,469 6,905,077 1,951,087 559,435 $ 10,172,143 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, 2009. 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 2006 2007 2008 FIRE 2006 2007 2008 Actuarial Funding Actual Value Accrued Liability of Plan Assets Liability (Excess) $ 39,606,532 38,668,154 40,781,540 28,456,219 26,853,367 27,991,354 $ Annual Liability as Funded Covered Percentage Ratio Payroll of Payroll 47,038,163 $ 51,924,584 55,369,298 7,431,631 13,256,430 14,587,758 84.2% $ 8,334,721 74.5% 9,149,431 73.7% 9,619,242 89.2% 144.9% 151.7% 39,701,588 43,029,776 44,521,592 11,245,339 16,176,409 16,530,238 71.7% 62.4% 62.9% 216.0% 287.1% 271.8% 54 5,206,722 5,634,967 6,081,510 City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2009 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 Amounts Available for Appropriation Variance with Final Budget Actual Positive Amounts (Negative) $ 18,884,808 $ 1,232,340 Original $ 17,652,468 Final $ 17,652,468 8,732,640 100,000 22,031,214 242,000 2,831,000 33,936,854 8,732,640 100,000 22,031,214 242,000 2,831,000 33,936,854 8,402,121 143,441 18,961,780 242,000 3,013,453 30,762,795 (330,519) 43,441 (3,069,434) 182,453 (3,174,059) 320,000 37,200 1,969,936 9,000 2,336,136 320,000 37,200 1,969,936 9,000 2,336,136 319,631 35,715 996,801 10,511 1,362,658 (369) (1,485) (973,135) 1,511 (973,478) 8,992,614 13,243,000 3,881,917 112,747 26,230,278 8,992,614 13,243,000 3,881,917 112,747 26,230,278 7,105,468 13,355,612 3,445,491 189,929 24,096,500 (1,887,146) 112,612 (436,426) 77,182 (2,133,778) 686,800 460,472 678,968 761,488 2,587,728 686,800 460,472 678,968 761,488 2,587,728 389,792 563,437 865,625 360,388 2,179,242 (297,008) 102,965 186,657 (401,100) (408,486) 895,280 895,280 895,280 895,280 1,237,672 1,237,672 342,392 342,392 775,000 143,700 918,700 775,000 143,700 918,700 504,146 196,249 700,395 (270,854) 52,549 (218,305) 3,000 115,000 118,000 67,022,976 440,200 3,000 115,000 118,000 67,022,976 440,200 85,115,644 12,616 269,172 281,788 60,621,050 440,200 79,946,058 9,616 154,172 163,788 (6,401,926) (5,169,586) 85,115,644 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, 2009 Budget Original Charges to Appropriations (outflows): General Government: Mayor and Council Elections City Administrator Strategic Communications Economic Development Facilities Maintenance General Government City Clerk Community Investment Trust City Attorney City Prosecutor Finance-Administration Accounting Customer Services Information Technology Services Purchasing Human Resources Intragovernmental Charges Total General Government Operating Expenditures Capital Outlay Capital Projects Total General Government Operating Expenditures Public Safety: Police Administration - Field Operations Police Support Services Police Communication Center Police 911 Administration Fire Administration Fire Training Fire Suppression Community Risk Reduction Fire Special Operations Fire Emergency Medical Services Fire Emergency Management Municipal Court Total Public Safety Operating Expenditures Capital Outlay Capital Projects Total Public Safety Expenditures Final Actual Amounts Variance with Final Budget Positive (Negative) 356,895 45,000 1,270,110 853,415 112,384 935,401 2,630,807 331,867 1,270,746 272,660 308,155 761,146 463,704 3,220,372 627,474 795,649 (3,672,582) 10,583,203 1,334,168 172,284 12,089,655 356,895 45,000 1,270,110 853,415 112,384 935,401 2,630,807 331,867 1,270,746 272,660 308,155 761,146 463,704 3,351,912 627,474 795,649 (3,672,582) 10,714,743 1,356,036 173,359 12,244,138 316,814 40,323 1,168,515 741,485 105,730 900,123 2,197,347 308,933 120,348 1,356,205 238,632 284,621 744,488 453,066 3,156,446 504,950 610,000 (3,672,582) 9,575,444 922,205 57,356 10,555,005 40,081 4,677 101,595 111,930 6,654 35,278 433,460 22,934 (120,348) (85,459) 34,028 23,534 16,658 10,638 195,466 122,524 185,649 1,139,299 433,831 116,003 1,689,133 19,637,318 2,931,949 2,264,911 466,424 571,539 9,645,282 959,048 124,354 166,707 142,322 1,729,441 38,639,295 151,575 38,790,870 19,562,818 2,851,187 2,188,385 76,526 466,424 571,539 9,645,282 959,048 124,354 166,707 142,322 1,729,441 38,484,033 287,279 38,771,312 18,189,146 2,584,135 2,046,074 31,297 442,323 475,594 9,573,456 924,191 59,491 89,309 95,861 1,568,576 36,079,453 85,579 28,164 36,193,196 1,373,672 267,052 142,311 45,229 24,101 95,945 71,826 34,857 64,863 77,398 46,461 160,865 2,404,580 201,700 (28,164) 2,578,116 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, 2009 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 Operating Expenditures Capital Outlay Capital Projects Total Parks, Recreation and Culture Expenditures Environmental Health and Protection: Environmental Management Intragovernmental Charges 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 Operating Expenditures Capital Outlay Total Community Design and Development Expenditures Total Operating Expenditures Capital Outlay Capital Projects Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Final Actual Amounts Variance with Final Budget Positive (Negative) 745,727 5,225,055 244,233 685,615 212,228 279,816 303,404 927,630 184,419 1,010,798 (155,093) 745,727 5,240,055 229,233 685,615 212,312 279,732 303,404 927,630 184,419 1,010,798 (155,093) 655,833 5,009,916 189,830 616,975 171,256 267,808 216,746 823,219 165,520 998,997 (155,093) 89,894 230,139 39,403 68,640 41,056 11,924 86,658 104,411 18,899 11,801 - 9,663,832 29,000 270,000 9,962,832 9,663,832 29,000 268,925 9,961,757 8,961,007 34,571 217,344 9,212,922 702,825 (5,571) 51,581 748,835 1,031,735 (924,142) 1,031,735 (924,142) 962,921 (924,142) 68,814 - 107,593 107,593 38,779 68,814 273,952 356,706 3,090,108 484,960 273,452 356,706 3,022,462 484,960 273,950 441,236 2,485,695 561,725 (498) (84,530) 536,767 (76,765) 4,205,726 124,000 4,137,580 124,000 3,762,606 15,232 374,974 108,768 4,329,726 65,280,676 1,638,743 442,284 67,361,703 4,990,609 4,261,580 65,346,380 1,796,315 442,284 67,584,979 4,990,609 72,575,588 3,777,838 58,417,289 1,057,587 302,864 59,777,740 4,412,641 64,190,381 483,742 6,929,091 738,728 139,420 7,807,239 577,968 8,385,207 72,352,312 $ 12,763,332 $ 12,540,056 $ 15,755,677 $ 3,215,621 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, 2009 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 Final Original $ 3,484,597 $ 3,484,597 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 Capital Projects Streets Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Actual Amounts $ 2,661,132 Variance with Final Budget Positive (Negative) $ (823,465) 8,532,647 8,532,647 7,029,312 (1,503,335) 150,000 150,000 11,375 (138,625) 80,000 10,000 8,772,647 12,257,244 80,000 10,000 8,772,647 12,257,244 19,541 10,390 7,070,618 14,421 9,746,171 (60,459) 390 (1,702,029) 14,421 (2,511,073) 1,444,276 1,444,276 1,299,457 144,819 2,217,687 3,674,484 624,771 750,989 781,022 499,439 2,198,687 3,620,769 624,771 680,989 781,022 499,439 1,310,651 3,059,143 837,782 604,308 624,992 471,487 888,036 561,626 (213,011) 76,681 156,030 27,952 94,809 316,550 148,524 405,550 132,560 75,777 1,220,000 11,624,027 100,987 11,725,014 1,250,000 11,654,027 100,987 11,755,014 8,416,157 101,141 8,517,298 532,230 See accompanying notes to this schedule 58 $ 502,230 $ 1,228,873 15,964 329,773 1,250,000 3,237,870 (154) 3,237,716 $ 726,643 City of Yuma, Arizona Budgetary Comparison Schedule City Road Tax Fund For the Year Ended June 30, 2009 Final 346,322 Actual Amounts $ 2,250,645 11,013,991 11,013,991 9,479,279 (1,534,712) 250,000 250,000 515,820 63,674 515,820 (186,326) 200,000 11,463,991 11,810,313 200,000 11,463,991 11,810,313 568,075 10,626,848 3,403 12,880,896 368,075 (837,143) 3,403 1,070,583 1,125,441 1,045,116 16,000 1,125,441 1,045,116 16,000 95,126 1,710,492 1,001,772 - (95,126) (585,051) 43,344 16,000 4,500,000 130,000 6,816,557 4,749,725 11,566,282 4,460,000 170,000 6,816,557 4,749,725 11,566,282 2,898,771 110,673 5,816,834 4,793,998 10,610,832 1,561,229 59,327 999,723 (44,273) 955,450 244,031 $ 2,270,064 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes Special Road Sales Tax Use of Money and Property Rent Interest Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Original $ 346,322 Charges to Appropriations (outflows): Current: Streets Right-Of-Way Management Street Maintenance Retention Basin Maintenance Capital Outlay Capital Projects Streets Environmental, Health and Safety Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Variance with Final Budget Positive (Negative) $ 1,904,323 244,031 See accompanying notes to this schedule 59 $ $ $ 2,026,033 City of Yuma, Arizona Budgetary Comparison Schedule Grants Fund For the Year Ended June 30, 2009 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 Transfers In Amounts Available for Appropriation Original $ - Charges to Appropriations (outflows): Current: General Government Public Safety Parks, Recreation and Culture Environmental Health and Protection Community Design & Development Capital Outlay Capital Projects General Government Public Safety Streets Parks, Recreation and Culture Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Final $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 2,883,419 119,600 23,777,116 2,883,419 119,600 23,777,116 3,939,699 383,626 - 1,056,280 264,026 (23,777,116) 105,640 26,885,775 26,885,775 105,640 26,885,775 26,885,775 4,786 56,848 4,384,959 17,227 4,402,186 4,786 (48,792) (22,500,816) 17,227 (22,483,589) 250,000 2,875,227 518,000 1,505,090 1,000 466,458 250,000 2,840,532 517,488 1,519,180 1,000 487,575 461,040 16,733 1,455,391 1,670,714 250,000 2,379,492 500,755 63,789 1,000 (1,183,139) 6,920,000 3,050,000 6,415,000 4,885,000 26,885,775 26,885,775 6,861,681 3,050,000 6,415,000 4,943,319 26,885,775 26,885,775 1,289 417,474 339,404 40,141 4,402,186 4,402,186 6,860,392 2,632,526 6,075,596 4,903,178 22,483,589 22,483,589 $ - See accompanying notes to this schedule 60 $ - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Community Redevelopment Fund For the Year Ended June 30, 2009 Actual Amounts Budget Original Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government Use of Money and Property Rental Receipts Miscellaneous Loan Repayments Other $ $ 1,824,981 Charges to Appropriations (outflows): Current: Community Design and Development Capital Outlay Capital Projects General Government Streets $ - $ 1,221,363 - (603,618) 20,344 20,344 2,359,339 534,358 2,359,339 2,359,339 63,530 20,333 1,325,570 355,956 1,681,526 1,898,939 8,000 1,898,939 8,000 1,252,332 3,705 646,607 4,295 100,000 352,400 65,000 387,400 2,359,339 2,359,339 40,377 385,112 1,681,526 1,681,526 24,623 2,288 677,813 677,813 2,359,339 2,359,339 Total Expenditures Transfers Out Total Charges to Appropriations $ - 534,358 2,359,339 - Amounts Available for Appropriation - 1,824,981 - Total Revenues Transfers In Budgetary Fund Balance, June 30 - Final Variance with Final Budget Positive (Negative) - See accompanying notes to this schedule 61 $ - $ - 63,530 (514,025) (1,033,769) 355,956 (677,813) $ - City of Yuma, Arizona NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2009 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 one fund. Unbudgeted fiscal agent fees caused expenditures within the Debt Service Fund to exceed appropriations by $10,200. 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, 2009 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 $ 116,733 $ 8,696 $ 838 117,571 $ 276,751 6,443 291,890 $ 111 $ 3,817 111 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 $ Solid Waste $ - Recreation Complex $ 1,313,375 259,519 15 $ 259,534 19,028 5,130 4,853 7,634 495 $ 1,350,515 $ $ 95,309 72,332 5,058 240,000 248,875 55,958 108,267 259,534 - - - 7,634 495 117,460 117,460 43,015 43,015 - 1,156,062 1,164,191 117,571 66 $ 291,890 $ 259,534 58,834 55,158 186,324 $ 1,350,515 Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 2,169,609 $ 3,612,251 $ 3,838 7,560 5,787 $ 2,182,956 $ 546 20,747 25,131 $ 286,653 302,643 17,921 7,634 495 4,227,597 $ $ 2,721 $ 295,876 121,586 121,586 7,410 15,000 25,131 - - 7,634 495 - 50,000 3,327,907 3,386,036 50,000 2,011,370 2,061,370 $ 2,182,956 $ 25,131 127,260 363,267 55,158 841,561 $ 4,227,597 67 City of Yuma, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2009 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 Capital Projects General Government Public Safety Streets Parks, Recreation and Culture Environmental, Health and Safety Total Expenditures Revenues Over/(Under) Expenditures $ Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) Recreation Complex $ 3,790,422 $ $ 394,161 1,822,718 3,015 24,755 40,066 6,691 437,242 3,815,177 1,829,409 - 68,507 - - - 87,922 - 53,594 253,225 16,311 357,458 142,288 264,389 79,784 3,154,187 - 633,284 6,075 639,359 1,851,324 41,638 3,154,187 563,891 2,456,853 3,550,788 (1,324,778) (1,817,494) - (4,240,722) 1,345,700 (20,922) 1,500,000 - - (4,240,722) 1,324,778 1,500,000 Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses 79,784 (689,934) - Fund Balances, July 1 37,676 732,949 - 1,481,685 - $ 1,164,191 Fund Balances, June 30 $ 117,460 $ 68 43,015 $ (317,494) Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 4,383,419 $ 33,677 50,000 4,467,096 154,174 6,591 160,765 $ 1,027,690 - 68,507 2,879,014 - - 3,154,187 - 266,949 - 354,871 95,232 749,573 95,005 1,872,268 266,949 749,573 142,288 253,225 658,896 16,311 8,372,104 2,594,828 (106,184) 2,976,944 (2,174,859) 106,184 - 2,951,884 (6,436,503) (2,174,859) 106,184 (3,484,619) 419,969 - 1,641,401 - $ 2,061,370 $ - 8,328,015 394,161 1,822,718 694,731 40,066 69,357 11,349,048 (507,675) 3,893,711 $ 3,386,036 69 City of Yuma, Arizona Budgetary Comparison Schedule Debt Service Fund For the Year Ended June 30, 2009 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 Final Original $ 529,182 $ 529,182 Actual Amounts $ 529,182 Variance with Final Budget Positive (Negative) $ - 950,000 950,000 949,000 (1,000) 371,795 1,321,795 371,795 1,321,795 355,511 1,304,511 (16,284) (17,284) 12,386,942 14,237,919 12,386,942 14,237,919 12,430,206 14,263,899 43,264 25,980 7,075,000 6,635,800 13,710,800 13,710,800 7,075,000 6,635,800 13,710,800 13,710,800 7,075,000 6,635,800 10,200 13,721,000 13,721,000 (10,200) (10,200) (10,200) $ 527,119 $ $ 542,899 70 527,119 $ 15,780 City of Yuma, Arizona Budgetary Comparison Schedule Capital Projects Fund For the Year Ended June 30, 2009 Budgetary Fund Balance, July 1 Resources (inflows): Charges for Services Developer Charges Use of Money and Property Rents Interest Miscellaneous Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Capital Outlay: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Safety Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Actual Positive Original Final Amounts (Negative) $ 67,739,351 $ 67,739,351 $ 67,731,729 $ (7,622) 8,043,407 8,043,407 4,910,728 (3,132,679) 515,140 509,500 19,888,700 28,956,747 96,696,098 515,140 509,500 19,888,700 28,956,747 96,696,098 942,087 612,565 6,465,380 74,197,109 (515,140) 432,587 (19,276,135) (22,491,367) (22,498,989) 9,455,000 11,338,500 52,569,663 11,811,185 5,629,000 90,803,348 90,803,348 5,753,500 11,338,500 56,411,163 11,811,185 5,489,000 90,803,348 90,803,348 423,598 1,330,680 20,062,406 4,080,898 576,620 26,474,202 373,780 26,847,982 5,329,902 10,007,820 36,348,757 7,730,287 4,912,380 64,329,146 (373,780) 63,955,366 $ 5,892,750 $ 5,892,750 71 $ 47,349,127 $ 41,456,377 City of Yuma, Arizona Budgetary Comparison Schedule Local Transportation Assistance Special Revenue Fund For the Year Ended June 30, 2009 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 Capital Projects: Streets Environmental, Health and Safety Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 20,000 $ 20,000 Actual Amounts $ 37,676 Variance with Final Budget Positive (Negative) $ 17,676 426,236 426,236 394,161 (32,075) 10,000 42,623 478,859 498,859 10,000 42,623 478,859 498,859 3,015 40,066 437,242 474,918 (6,985) (2,557) (41,617) (23,941) 92,922 92,922 87,922 5,000 385,937 478,859 478,859 385,937 478,859 478,859 253,225 16,311 357,458 357,458 $ 20,000 $ 20,000 $ 117,460 72 132,712 (16,311) 121,401 121,401 $ 97,460 City of Yuma, Arizona Budgetary Comparison Schedule Public Safety Tax Special Revenue Fund For the Year Ended June 30, 2009 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Public Safety Sales Tax Use of Money and Property Interest Total Revenues Budget Final Original $ 858,752 $ 858,752 Amounts Available for Appropriation Actual Amounts $ 732,949 Variance with Final Budget Positive (Negative) $ (125,803) 4,404,094 4,404,094 3,790,422 (613,672) 120,000 4,524,094 5,382,846 120,000 4,524,094 5,382,846 24,755 3,815,177 4,548,126 (95,245) (708,917) (834,720) 67,047 - 67,047 188,458 68,507 53,594 (1,460) 134,864 499,500 566,547 499,500 755,005 142,288 264,389 357,212 490,616 4,300,153 4,866,700 4,300,153 5,055,158 4,240,722 4,505,111 59,431 550,047 Charges to Appropriations (outflows): Current: Public Safety Police Support Services Capital Outlay Capital Projects: Public Safety Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ 516,146 73 $ 327,688 $ 43,015 $ (284,673) City of Yuma, Arizona Budgetary Comparison Schedule Solid Waste Special Revenue Fund For the Year Ended June 30, 2009 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 Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 1,809,300 1,809,300 1,822,718 13,418 10,000 1,819,300 1,927,155 3,746,455 10,000 1,819,300 1,927,155 3,746,455 6,691 1,829,409 1,345,700 3,175,109 (3,309) 10,109 (581,455) (571,346) 3,269,666 375,373 80,525 3,725,564 20,891 3,746,455 3,269,666 375,373 80,525 3,725,564 20,891 3,746,455 2,779,984 326,316 47,887 3,154,187 20,922 3,175,109 489,682 49,057 32,638 571,377 (31) 571,346 $ - $ 74 - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Recreation Complex Special Revenue Fund For the Year Ended June 30, 2009 Budgetary Fund Balance, July 1 Resources (inflows): Use of Money and Property Rents and Concessions Interest Miscellaneous Other Total Revenues Transfers In Budget Final Original $ 1,435,231 $ 1,435,231 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Civic and Convention Center Baseball Complex Capital Outlay Capital Projects: Parks, Recreation and Culture Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Actual Amounts $ 1,481,685 Variance with Final Budget Positive (Negative) $ 46,454 677,999 85,000 677,999 85,000 604,494 28,790 (73,505) (56,210) 7,075 770,074 1,500,000 3,705,305 7,075 770,074 1,500,000 3,705,305 6,075 639,359 1,500,000 3,621,044 (1,000) (130,715) (84,261) 1,373,566 707,598 10,800 1,350,953 707,598 33,413 1,228,905 622,419 41,638 122,048 85,179 (8,225) 716,500 2,808,464 2,808,464 716,500 2,808,464 2,808,464 563,891 2,456,853 2,456,853 152,609 351,611 351,611 896,841 $ 1,164,191 896,841 75 $ $ 267,350 City of Yuma, Arizona Budgetary Comparison Schedule Two Percent Tax Special Revenue Fund For the Year Ended June 30, 2009 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Two PercentTax Use of Money and Property Interest Miscellaneous Other Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Administration Outside Agencies Capital Projects: General Government Parks, Recreation and Culture Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 1,727,786 $ 1,727,786 Actual Amounts $ 1,641,401 Variance with Final Budget Positive (Negative) $ (86,385) 4,508,537 4,508,537 4,383,419 (125,118) 60,000 60,000 33,677 (26,323) 4,568,537 6,296,323 4,568,537 6,296,323 50,000 4,467,096 6,108,497 50,000 (101,441) (187,826) 129,420 925,000 129,420 925,000 137,166 890,524 (7,746) 34,476 1,830,000 170,000 3,054,420 2,174,663 5,229,083 1,830,000 170,000 3,054,420 2,174,663 5,229,083 749,573 95,005 1,872,268 2,174,859 4,047,127 1,080,427 74,995 1,182,152 (196) 1,181,956 $ 1,067,240 $ 1,067,240 $ 2,061,370 76 $ 994,130 City of Yuma, Arizona Budgetary Comparison Schedule Yuma Mall Maintenance Special Revenue Fund For the Year Ended June 30, 2009 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 Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Final Original $ $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 110,000 110,000 154,174 44,174 15,000 125,000 168,787 293,787 15,000 125,000 168,787 293,787 6,591 160,765 106,184 266,949 (8,409) 35,765 (62,603) (26,838) 293,787 293,787 293,787 293,787 293,787 293,787 266,949 266,949 266,949 26,838 26,838 26,838 $ $ - 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, 2009 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 Unrestricted Total Net Assets Desert Hills Golf Course Arroyo Dunes Golf Course $ $ 51,994 $ 266,763 4,944 411 18 92,430 7,750 157,547 631 1,823 217,223 4,944 411 649 94,253 7,750 374,770 3,102,865 2,370,096 307,033 645,571 21,866 3,102,865 3,015,667 328,899 5,779,994 (3,322,834) 667,437 (532,886) 6,447,431 (3,855,720) 2,457,160 2,457,160 2,614,707 134,551 134,551 351,774 2,591,711 2,591,711 2,966,481 45,501 142,782 50,551 5,169 14,350 - 50,670 157,132 50,551 238,834 19,519 258,353 238,834 19,519 258,353 134,551 197,704 332,255 2,591,711 116,417 2,708,128 2,457,160 (81,287) $ 2,375,873 $ 80 214,769 $ City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Proprietary Funds For the Year Ended June 30, 2009 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 971,089 360,200 253,961 528,837 2,114,087 $ 2,238,533 213,845 2,452,378 Non-Operating Revenues/(Expenses): Interest Miscellaneous Revenues Net Non-Operating Revenues Transfers In Transfers Out Change in Net Assets $ Net Assets-ending 81 (372,230) 3,004 1,866 4,870 3,004 5,431 8,435 (334,726) (29,069) (363,795) 234,659 (234,659) - 234,659 (234,659) (334,726) (29,069) (363,795) 361,324 2,710,599 Net Assets-beginning 1,242,397 371,242 255,716 528,837 2,398,192 2,528,108 242,314 2,770,422 (33,939) 3,565 3,565 Income/(Loss) before Contributions and Transfers $ 289,575 28,469 318,044 (338,291) Operating Income/(Loss) 271,308 11,042 1,755 284,105 2,375,873 $ 332,255 3,071,923 $ 2,708,128 City of Yuma, Arizona Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended June 30, 2009 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 Flow from Capital and Related Financing Acitivities: Acquisition and Construction of Assets Net Cash Used for Capital and Related Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities 2,113,084 $ (1,016,284) (1,200,552) 3,565 (100,187) 234,659 (234,659) - 234,659 (234,659) - - - (50,000) - (50,000) (50,000) - (50,000) 726 726 Net Increase/(Decrease) in Cash and Cash Equivalents 3,448 3,448 (149,461) Cash and Cash Equivalents, July 1 Cash and Cash Equivalents, June 30 $ 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 82 284,105 $ 2,397,189 (126,936) (1,143,220) (157,189) (1,357,741) 1,866 5,431 1,846 (98,341) 201,455 51,994 4,174 4,174 5,294 $ 209,475 214,769 (144,167) $ 410,930 266,763 $ (338,291) $ (33,939) $ (372,230) $ 213,845 (431) (3,740) 408 10,235 14,795 (573) 3,565 238,104 (100,187) $ 28,469 (1,118) 3,630 2,938 1,866 35,785 1,846 $ 242,314 (431) (4,858) 408 13,865 17,733 (573) 5,431 273,889 (98,341) City of Yuma, Arizona Budgetary Comparison Schedule Water Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2009 Budget Original Resources (inflows): Inside City Outside City Commercial Raw Water Meters, Connections and Services Capital Contributions: System Development Capacity Rights 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 $ $ Final Actual Amounts Variance with Final Budget Positive (Negative) 18,414,000 $ 2,759,100 299,000 427,209 18,414,000 $ 19,699,978 $ 2,759,100 2,762,881 299,000 245,742 427,209 313,937 350,000 3,000,000 425,700 5,691 25,680,700 25,680,700 350,000 3,000,000 425,700 5,691 25,680,700 25,680,700 172,716 2,326,278 806,111 26,938 26,354,581 26,354,581 2,482,218 7,170,588 1,637,433 1,352,476 104,097 293,716 2,482,218 7,165,095 1,639,933 1,354,776 104,097 293,716 2,399,665 5,243,772 1,545,589 1,185,572 51,896 225,670 82,553 1,921,323 94,344 169,204 52,201 68,046 339,184 32,066,947 339,877 32,066,947 139,528 16,061,547 200,349 16,005,400 5,449,669 6,290,993 57,187,321 62,094 57,249,415 5,449,669 6,290,993 57,187,321 62,094 57,249,415 5,449,669 6,292,510 38,595,418 62,189 38,657,607 (1,517) 18,591,903 (95) 18,591,808 (31,568,715) $ (31,568,715) Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Principal Retirement Capital Contributions for Developer Additions to System Amortization of Debt Issuance Costs Amortization of Bond Premium Loss on Disposal of Assets Depreciation and Amortization Change in Net Assets (12,303,026) $ 1,285,978 3,781 (53,258) (113,272) (177,284) (673,722) 380,411 21,247 673,881 673,881 19,265,689 139,528 16,061,547 5,449,669 773,485 141,855 (69,936) (2,296) (3,734,343) $ 6,456,483 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, 2009 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 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 $ 9,700,000 $ 666,000 1,805,000 42,700 Final Actual Amounts Variance with Final Budget Positive (Negative) 9,700,000 $ 10,763,676 $ 666,000 898,935 1,805,000 1,708,943 42,700 25,218 1,063,676 232,935 (96,057) (17,482) 1,973,100 200,000 3,500 386,700 (3,117) 14,773,883 14,773,883 1,973,100 200,000 3,500 386,700 (3,117) 14,773,883 14,773,883 4,702,138 236,309 10,200 235,847 109,962 18,691,228 18,691,228 2,729,038 36,309 6,700 (150,853) 113,079 3,917,345 3,917,345 1,240,770 6,233,802 484,028 902,101 337,610 1,240,770 6,268,802 484,028 907,101 337,610 1,112,578 5,989,491 400,912 835,008 178,606 128,192 279,311 83,116 72,093 159,004 159,600 8,726,000 119,600 8,726,000 67,573 3,302,898 52,027 5,423,102 2,762,109 2,565,362 23,411,382 23,962 23,435,344 2,762,109 2,565,362 23,411,382 23,962 23,435,344 2,762,109 2,565,708 17,214,883 33,045 17,247,928 (346) 6,196,499 (9,083) 6,187,416 (8,661,461) $ (8,661,461) Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Principal Retirement Amortization of Debt Issuance Costs Capital Contributions for Subdivider Additions to System Depreciation and Amortization Change in Net Assets 1,443,300 $ 10,104,761 67,573 3,302,898 2,762,109 36,259 1,702,944 (2,754,295) $ 6,560,788 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, 2009 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 $ 1,136,894 372,957 324,005 613,748 3,500 1,000 2,452,104 234,463 2,686,567 $ 1,136,894 372,957 324,005 613,748 3,500 1,000 2,452,104 234,463 2,686,567 1,292,389 596,978 685,447 66,500 2,641,314 234,463 2,875,777 1,292,389 596,978 685,447 66,500 2,641,314 234,463 2,875,777 $ (189,210) $ Actual Amounts $ Variance with Final Budget Positive (Negative) 971,089 360,200 253,961 528,837 3,565 2,117,652 234,659 2,352,311 $ (165,805) (12,757) (70,044) (84,911) (3,500) 2,565 (334,452) 196 (334,256) 1,070,227 513,918 654,388 50,000 2,288,533 234,659 2,523,192 222,162 83,060 31,059 16,500 352,781 (196) 352,585 (170,881) $ (189,210) Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Loss on Disposal of Assets Depreciation and Amortization 18,329 50,000 (213,845) $ Change in Net Assets (334,726) 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, 2009 Actual Amounts Budget Final Original 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 $ 268,245 14,994 1,623 5,000 289,862 289,862 $ 268,245 14,994 1,623 5,000 289,862 289,862 265,619 50,615 316,234 316,234 265,619 50,615 316,234 316,234 (26,372) $ (26,372) $ 271,308 11,042 1,755 3,004 1,866 288,975 288,975 Variance with Final Budget Positive (Negative) $ 246,765 42,810 289,575 289,575 (600) $ Reconciliation to Change in Net Assets: Depreciation and Amortization 3,063 (3,952) 132 (1,996) 1,866 (887) (887) 18,854 7,805 26,659 26,659 25,772 (28,469) $ Change in Net Assets (29,069) 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, 2009 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 Equipment Equipment Replacement Maintenance $ 16,293,498 56,879 16,350,377 $ 29,567,963 (17,279,832) 12,288,131 28,638,508 167,165 33,303 30 544,878 220 745,596 219,610 19,251 189,631 205,484 (107,115) 526,861 1,272,457 Insurance Reserve Employee Benefits Trust $ 2,310,257 39,006 7,339 2,107 2,358,709 $ 482,836 1,636 484,472 2,358,709 484,472 1,157,609 Workers Compensation $ 1,148,115 6,446 3,048 1,157,609 Totals $ 20,401,871 78,755 30 68,902 544,878 2,327 21,096,763 219,610 19,251 189,631 29,773,447 (17,386,947) 12,814,992 33,911,755 10,814 15,015 99,311 179 20 125,339 10,814 160,587 495,603 671,205 24,140 123,451 179 851,083 270,000 1,121,103 160,587 875,223 765,603 1,926,752 12,288,131 16,339,563 $ 28,627,694 526,861 74,391 601,252 2,235,258 $ 2,235,258 484,293 $ 484,293 36,506 36,506 12,814,992 19,170,011 $ 31,985,003 $ 88 $ City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds For the Year Ended June 30, 2009 Equipment Replacement Operating Revenues: Charges For Services Contributions City Property Damage Restitution Equipment Rental Miscellaneous Total Operating Revenues Operating Expenses: Claims Incurred Premiums to Insurance Carriers Administration Depreciation Total Operating Expenses Operating Income/(Loss) Non-Operating Revenue/(Expenses): Interest Gain on the Sale of Assets Total Non-Operating Revenues Change in Net Assets Net Assets, Beginning Net Assets, Ending $ Employee Benefits Trust Equipment Maintenance Insurance Reserve $ 3,749,458 $ 1,112,186 1,385,415 17,088 1,402,503 1,490 3,750,948 16,718 9,213 1,138,117 7,121 7,121 850,791 2,027 852,818 850,791 16,718 1,385,415 36,939 7,151,507 1,223 2,526,173 2,527,396 (1,124,893) 3,550,881 24,892 3,575,773 175,175 115,303 529,832 680,210 1,325,345 (187,228) 59,660 9,263 68,923 (61,802) 817,489 150,562 27,326 995,377 (142,559) 932,792 740,054 4,268,903 2,551,065 8,492,814 (1,341,307) - $ - Workers Compensation $ - $ 4,861,644 334,328 31,389 365,717 - 41,064 41,064 9,173 9,173 (759,176) 175,175 (146,164) (52,629) (142,273) 178,779 32,910,070 36,506 $ 31,985,003 29,386,870 426,077 2,381,422 536,922 $ 28,627,694 $ 601,252 $ 2,235,258 $ 484,293 89 286 286 Totals $ 384,851 31,389 416,240 (925,067) City of Yuma, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2009 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 $ Equipment Maintenance Employee Benefits Trust Workers Compensation 1,401,280 $ 3,772,424 $ 1,141,672 $ 7,121 $ (1,242,513) (137,843) (68,935) (2,284,857) (1,330,933) 1,401,280 Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Net Cash Flows Provided by/(Used for) Noncapital Financing Activities Insurance Reserve 107,211 (189,261) (61,814) - - - - - Totals 879,993 $ 7,202,490 (1,242,513) (206,778) (787,643) (4,403,433) 92,350 1,349,766 - (87) (87) - - (87) (87) 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 38,190 (3,798,835) (1,993) - - - 38,190 (3,800,828) (3,760,645) (1,993) - - - (3,762,638) Cash Flows from Investing Activities Receipt of Interest Net Cash Flows Provided by Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalen 383,270 383,270 (1,976,095) 105,218 45,783 45,783 (143,478) 10,832 10,832 (50,982) 1,132 1,132 93,395 441,017 441,017 (1,971,942) Cash and Cash Equivalents, July 1, 2008 Cash and Cash Equivalents, June 30, 2009 18,269,593 $ 16,293,498 $ 61,947 2,453,735 533,818 167,165 $ 2,310,257 $ 482,836 $ $ 175,175 $ (187,228) $ (61,802) $ 1,054,720 22,373,813 1,148,115 $ 20,401,871 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 $ (1,124,893) $ 2,526,173 - 24,892 21,471 18,944 827 (157,834) 23,736 3,555 (2,107) 2,726 - - 2,526,173 (67,964) (6,207) (2,033) - 1,401,280 $ 107,211 $ (189,261) $ (61,814) $ 90 (12) - (12) (142,559) $ (1,341,307) 27,175 (7,364) 215,098 234,909 2,551,065 52,201 18,944 (1,280) (162,484) 23,736 208,891 2,691,073 92,350 $ 1,349,766 City of Yuma, Arizona Budgetary Comparison Schedule Equipment Replacement Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2009 Actual Amounts Budget Original Resources (inflows): Charges for Services Miscellaneous 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 $ 3,453,372 775,000 4,228,372 Final $ 4,228,372 1,223 5,655,570 5,656,793 3,453,372 775,000 4,228,372 4,228,372 1,223 5,655,570 5,656,793 5,656,793 5,656,793 $ (1,428,421) $ (1,428,421) Reconciliation to Change in Net Assets: Capital Outlay Gain on Sale of Assets Depreciation and Amortization Change in Net Assets $ 1,385,415 17,088 334,328 1,736,831 1,736,831 Variance with Final Budget Positive (Negative) $ 1,223 3,799,162 3,800,385 3,800,385 (2,063,554) $ (2,067,957) 17,088 (440,672) (2,491,541) (2,491,541) 1,856,408 1,856,408 1,856,408 (635,133) 3,799,162 31,389 (2,526,173) $ (759,176) 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, 2009 Actual Amounts Budget Final 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 4,115,354 4,115,354 $ 4,115,354 4,115,354 4,115,354 4,115,354 4,154,396 26,400 4,159,396 21,400 3,550,881 1,992 608,515 19,408 4,180,796 4,180,796 4,180,796 3,552,873 3,552,873 627,923 627,923 4,180,796 $ (65,442) $ Reconciliation to Change in Net Assets: Capital Outlay Depreciation and Amortization Change in Net Assets $ 3,749,458 1,490 3,750,948 3,750,948 Variance with Final Budget Positive (Negative) 198,075 (65,442) $ $ $ (365,896) 1,490 (364,406) (364,406) 263,517 1,992 (24,892) 175,175 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, 2009 Actual Amounts Budget Final Original Resources (inflows): Charges for Services Property Damage Restitution Miscellaneous Interest Total Revenues $ $ 1,174,186 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 1,112,186 5,000 2,000 55,000 1,174,186 562,062 183,000 1,089,500 1,834,562 1,834,562 $ (660,376) $ Reconciliation to Change in Net Assets: Change in Net Assets 1,112,186 5,000 2,000 55,000 1,174,186 1,174,186 $ 562,062 183,000 1,089,500 1,834,562 1,834,562 1,112,186 16,718 9,213 41,064 1,179,181 1,179,181 Variance with Final Budget Positive (Negative) $ 529,832 115,303 680,210 1,325,345 1,325,345 (660,376) $ $ (146,164) $ 11,718 7,213 (13,936) 4,995 4,995 32,230 67,697 409,290 509,217 509,217 514,212 (146,164) 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 Eight Fiscal Years (amounts expressed in thousands) Fiscal Year 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 $ $ $ $ $ $ 2003 69,300 1,484 44,208 114,993 $ 80,224 23,251 103,475 $ 149,524 1,484 67,460 218,468 $ $ $ $ 2004 81,689 50,234 131,922 $ 85,380 22,511 107,891 $ 167,069 72,744 239,813 $ $ $ $ 2005 95,005 55,748 150,752 $ 86,266 31,537 117,803 $ 181,271 87,284 268,555 $ $ $ $ 2006 111,268 330 57,707 169,305 $ 105,944 27,122 133,067 $ 217,212 330 84,829 302,372 $ $ $ $ 2007 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. $ $ $ 2008 160,214 12,991 43,638 216,844 $ 154,054 7,587 161,641 $ 314,268 12,991 51,225 378,485 $ $ $ $ 2009 169,403 17,952 45,354 232,709 $ 151,032 151 24,079 175,262 $ 320,435 18,103 69,433 407,971 $ $ $ $ 129,228 70,389 38,439 238,056 158,367 1,952 27,344 187,663 287,595 72,341 65,783 425,719 City of Yuma, Arizona Changes in Net Assets Last Eight 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 $ $ $ $ $ $ 81,267 $ 84,411 $ 91,536 $ 105,572 $ 116,383 $ 133,971 $ 139,366 $ 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 $ 390 865 7,607 4,911 1,807 4,783 20,363 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 $ $ $ $ $ 17,522 10,387 2,189 1,390 11,249 42,736 65,454 18,389 13,270 2,889 34,548 11,559 41,080 15,966 16,282 4,969 5,486 6,592 101,934 75,204 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 2009 $ 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 $ 20,754 13,859 2,819 37,432 21,027 22,463 13,126 13,372 2,140 2,027 1,181 1,098 8,874 9,924 46,348 48,884 70,690 $ 69,247 Continued on next page City of Yuma, Arizona Changes in Net Assets Last Eight 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 $ 2009 (75,082) $ 11,800 (63,281) $ 8,250 39,478 2,893 32,788 2,600 $ (81,571) 11,452 (70,119) 8,856 36,857 3,013 31,330 3,895 292 920 (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 2,872 95 86,919 999 575 (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 1,045 (95) 950 87,869 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 $ $ 5,347 12,402 $ 17,749 Concluded City of Yuma, Arizona Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2001 2000 2002 Fiscal Year 2004 2003 2005 2006 2007 2008 2009 General Fund Reserved Unreserved $ 507 7,806 $ 490 11,073 $ 539 13,012 $ 489 15,087 $ Total General Fund $ 8,312 $ 11,563 $ 13,551 $ 15,576 $ 17,537 $ 20,000 $ 21,739 $ 20,202 $ 18,885 $ 15,756 $ 89 $ 3,173 $ 1,567 $ 85 $ $ $ $ $ $ 101 All other governmental funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds 14,404 1,143 $ 15,636 10,704 25,450 $ 39,327 9,424 3,355 $ 14,346 $ 101 17,436 63 $ 296 19,704 339 $ 614 21,125 535 $ 309 19,893 513 $ 277 18,608 543 $ 262 15,493 552 10,495 5,967 13,407 6,920 17,036 1,104 19,908 5,976 12,892 926 8,791 67,732 6,876 47,349 16,548 $ 20,391 $ 18,479 $ 26,418 $ 14,331 $ 77,066 $ 54,777 City of Yuma, Arizona Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2001 2002 2003 2004 2005 2000 2006 2007 2008 2009 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 $ 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 $ 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 $ 48,570 1,363 37,065 8,913 1,238 949 3,309 97 1,646 103,148 $ $ $ $ $ 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 $ $ $ 3,825 2,962 78,689 3,447 3,032 83,750 4,209 2,890 93,975 (8,651) $ (1,922) $ 3,423 $ 5,066 Expenditures 102 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 3,834 19,423 4,157 6,541 2,401 4,827 12,774 3,786 1,914 59,655 $ (457) $ 3,498 20,733 4,163 6,704 2,823 4,811 23,092 3,897 2,151 71,872 4,001 22,660 4,393 7,428 3,175 5,331 37,311 4,346 3,227 91,872 (7,841) $ (24,277) $ 4,732 24,364 4,884 7,765 3,000 6,338 19,198 5,248 2,872 78,402 7,641 35,014 7,155 11,022 3,551 6,698 41,450 3,837 2,939 119,306 9,723 37,874 8,913 11,547 4,757 5,726 51,149 8,312 5,885 143,885 9,575 37,908 9,716 11,857 4,781 5,370 35,734 7,075 6,646 128,662 $ (13,261) $ (32,364) $ (25,514) 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 $ 34,209 $ 909 $ 31,490 $ 7,280 $ $ 3,875 $ $ 93,686 $ 281 455 (19,199) 920 307 742 17,511 23,490 21,423 21,117 21,609 20,219 25,016 38,410 29,685 16,213 (17,145) (23,198) (21,501) (20,530) (22,082) (23,398) (25,021) (38,773) (29,589) (16,118) 365 34,783 1,285 12,878 7,727 (2,872) 4,612 (363) 93,782 95 (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% $ 25,419 14.8% City of Yuma, Arizona Governmental Funds Tax Revenues by Source Last Ten Fiscal Years Fiscal Year General Sales Tax Property Tax 2000 $ 4,730,665 2001 Utility Franchise Public Enterprise In-Lieu Mall District Levy Total $ 2,363,269 $ 1,796,281 $ 242,000 $ 50,671 $28,412,684 103 City Road Sales Tax Public Safety Sales Tax Civic Center Two Percent Excise Tax Tax $ 11,342,233 $ 5,574,996 $ 2,306,895 $ 5,243,984 12,836,934 6,417,376 2,566,078 - 2,490,071 2,135,544 242,000 62,912 31,994,899 2002 5,193,075 13,116,950 6,448,954 2,578,704 - 2,652,152 1,835,810 242,000 64,172 32,131,817 2003 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 2009 8,545,562 18,961,780 9,479,279 3,790,422 - 4,383,419 3,013,453 242,000 154,174 48,570,089 5,674 City of Yuma, Arizona Governmental Funds Intergovernmental Shared Revenues Last Ten Fiscal Years Local Transportion Assistance Grants and Others* Total $ 418,463 $ 2,999,869 $ 24,683,344 104 Fiscal Year Sales Tax Revenue Sharing 2000 $ 5,515,532 $ 6,958,385 $ 2,075,329 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 2009 7,105,468 13,355,612 3,445,491 7,029,312 394,161 5,734,617 37,064,661 Auto In-Lieu Highway Users $ 6,715,766 *See 'Intergovernmental Revenues - Grants and Others' for detail information. City of Yuma, Arizona Intergovernmental Revenues - Grants and Other Last Ten Fiscal Years Federal Fiscal Year Justice Interior 2000 $ 948,716 $ 172,030 2001 970,255 158,271 2002 1,010,764 2003 State of Arizona Housing/Urban Economic Development Development (CDBG) Administration $ 1,215,765 $ Other HUD Other $ Parks Commerce 89,525 $ 169,567 $ 20,339 Transportation $ 40,000 Other $ 214,856 Total 105 - $ 82,536 706,783 - 199,998 156,327 393,823 10,054 - 90,937 405,198 640,280 - 229,712 507,488 753,502 264,684 240,890 366,161 22,264 4,440,943 1,309,351 1,398,560 991,044 - 169,579 413,527 96,498 441,101 - 233,831 19,432 5,072,923 2004 3,462,972 575,124 1,349,178 - 405,814 896,311 87,359 - 151,489 60,457 7,019,763 2005 1,233,650 465,209 594,924 - 80,301 2,485,908 79,123 - 2006 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 - - 2009 583,702 1,469,327 1,121,334 - - 31,059 $ 46,535 Local Government - - $ 2,999,869 2,686,448 - 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 1,335,165 505,838 1,844,645 214,649 26,411 - 6,448,868 2,176,628 - 297,024 5,393 81,210 - 5,734,617 City of Yuma, Arizona Taxable Sales by Category Last Ten Fiscal Years (amounts expressed in thousands) 2001 2000 Mining $ 22 $ 2002 25 $ - Fiscal Years 2004 2005 2003 $ 3 $ - $ 2006 1 $ 2007 3 $ 2008 25 $ 155 2009 $ 6 Construction 95,975 107,204 123,550 132,387 166,117 228,801 235,643 254,740 249,315 207,592 Manufacturing 27,488 40,897 26,315 23,128 28,969 53,176 60,054 57,632 59,931 48,964 Transportation, Communications, and Utilities 99,943 158,945 142,496 126,623 121,936 145,454 173,224 186,420 207,693 206,089 Wholesale Trade 28,966 25,543 26,615 27,587 23,625 29,635 35,498 34,732 22,480 33,785 651,145 701,473 730,255 760,867 823,785 925,936 1,024,886 1,088,053 1,089,001 1,001,579 Restaurants and Bars 88,227 93,828 99,965 103,690 110,633 123,683 143,594 157,866 162,560 162,404 Fire Insurance and Real Estate 76,017 88,464 42,494 42,376 69,235 97,875 117,161 143,725 132,593 115,857 Hotels and Other Lodging 23,844 26,911 25,328 26,789 30,785 34,930 37,333 39,360 33,642 36,093 Services 34,203 33,342 78,342 79,392 66,721 44,921 48,639 58,050 52,012 50,858 5,000 6,919 1,216 717 43,029 31,963 32,542 46,423 38,503 32,743 $ 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 $ 1,895,969 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% 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% 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 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% 2009 1.70% 2.00% 1.10% 5.60% Source: Arizona Department of Revenue City of Yuma, Arizona Ratio of Outstanding Debt by Type Last Eight Fiscal Years Fiscal Year General Obligation Bonds 2002 $ Governmental Activities Municipal Property Special Corporation Assessment Bonds Bonds 108 - $ 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* - $ 573,334 - 3,320,000 - 11,385,000 10,408,191 91,353,191 2.80% 535 7,280,000 2,515,000 - 10,505,000 33,790,746 117,530,746 3.30% 667 60,420,000 7,280,000 1,723,000 - 9,575,000 61,072,113 140,070,113 3.67% 773 - 57,765,000 10,475,000 924,000 - 8,585,000 74,110,111 151,859,111 3.73% 810 2007 - 55,035,000 9,765,000 117,000 - 7,535,000 84,154,117 156,606,117 3.63% 822 2008 - 144,100,000 8,820,000 - 127,925,000 6,420,000 80,379,511 367,644,511 7.89% 1,892 2009 - 136,850,000 7,840,000 - 123,090,000 5,250,000 76,473,462 349,503,462 NA $ $ $ - 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 2000 71,000 2001 Assessed Value $ General Bonded Debt Ratio of General Bonded Debt to Assessed Value General Bonded Debt per Capita 109 245,088,969 - - - 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 - - - 2009 93,719 699,754,765 - - - Source: Yuma County Assessor Arizona Department of Economic Security Arizona Department of Commerce City of Yuma, Arizona Computation of Direct and Overlapping Debt June 30, 2009 Debt Jurisdiction City of Yuma Outstanding $ - Allocable to City of Yuma Percent Amount 100.00% $ - 110 Yuma County 17,117,830 48.39% 8,283,019 Yuma County Library District 49,960,000 48.39% 24,174,771 Yuma County Community College District 73,480,000 48.39% 35,555,687 Yuma Union High School District No. 70 53,625,000 54.04% 28,978,950 Yuma School District No. 1 13,675,000 56.13% 7,676,397 Yuma School District No. 13 16,300,000 64.49% 10,511,915 Total Overlapping Debt Source: Yuma County Finance Department Arizona Western College Note: School district valuation applicable percentage estimated $ 115,180,739 City of Yuma, Arizona Legal Debt Margin Information June 30, 2009 (amounts expressed in thousands) 2000 Debt Limit Water, Sewer, Lights, Parks (20%) $ 49,002 All Others (6%) 14,701 2001 2002 Fiscal Year 2004 2005 2003 2006 2007 2008 2009 $ 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 $ 139,951 41,985 13,715 - 12,995 - 12,210 - 11,385 - 10,505 - 9,575 - 8,585 - 7,535 - 6,420 - 5,250 - Legal debt margin Water, Sewer, Lights, Parks (20%) $ 36,007 All Others (6%) 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 $ 86,171 28,112 $ 108,036 34,337 $ 134,701 41,985 Total net debt applicable to limit Water, Sewer, Lights, Parks (20%) All Others (6%) 111 Total net debt applicable to the limit as a percentage of debt limit Water, Sewer, Lights, Parks (20%) All Others (6%) 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% 3.75% 0.00% Legal Debt Margin Calculation for Fiscal Year 2009 General Obligation Bonds 2008 Tax Year Secondary Assessed Valuation Outstanding General Obligation Debt: Project 1997 Total General Obligation Debt $ 699,755 Water, Sewer, Lights, Parks (20%) All Others (6%) $ 139,951 $ - 5,250 5,250 $ 134,701 $ (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. 41,985 41,985 City of Yuma, Arizona Schedule of Municipal Property Corporation Debt Service Requirements to Maturity and Coverage Series 2001, 2007, and 2003 Refunding 1995 Covenants 2003 Ref 2003 Ref 2003 Ref 2007 2007 1995A 1995B 1995C Series B Series D 2008-09 Pledged Taxes 2008-09 Net Revenue Total Taxes/Net Revenue $ 55,377,362 55,377,362 112 2009-10 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 1,575,453 1,575,453 35.2 4.0 Collective Coverage Total 2008-09 Taxes/Net Revenue $ 55,377,362 $ 12,400,166 Total 2009-10 Debt Coverage 4.5 Required Coverage 4.0 $ 51,586,940 51,586,940 $ 55,970,359 55,970,359 $ 51,586,940 51,586,940 $ 61,066,219 61,066,219 $ $ $ 2,296,970 2,296,970 22.5 3.0 $ 4,763,525 4,763,525 12.8 1.5 $ 306,448 2,529,925 695,532 3,531,905 14.6 3.0 $ 51,586,940 $ 12,400,166 4.2 3.0 $ 232,313 232,313 240.9 3.5 $ 55,970,359 $ 12,400,166 4.5 3.5 $ $ $ 51,586,940 12,400,166 4.2 3.0 $ $ $ 61,066,219 15,598,312 3.9 1.5 2007 Series Utilities Total $ 1,575,453 306,448 232,313 2,529,925 695,532 2,296,970 4,763,525 $ 12,400,166 $ 18,293,287 18,293,287 $ 6,686,574 8,911,738 15,598,312 1.2 1.2 $ $ $ 18,293,287 12,400,166 1.5 1.2 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. City of Yuma, Arizona Pledged Tax Collections 2000 113 Local Taxes Sales Tax (1%) $ 11,342,233 2,038,281 Franchise Fee Intergovernmental Revenues: State Revenue Sharing 6,958,385 State Sales Tax 5,515,532 Auto In-Lieu Tax 2,075,329 Emergency Services and Other 21,856 Licenses: Business Licenses 273,704 26,560 Liquor Licenses Fees for Services: 1,318,636 Building Permits and Inspection Fees Recreation Fees 305,014 423,643 Police Services and Other Public Safety Fees Use of Money and Property: Investment Income 278,612 Fines, Forfeitures and Penalties: City Court Fines 447,813 31,025,598 Total Series B Pledged Taxes Additional Series A Pledged Taxes City Public Safety Taxes (.2%) 2,306,895 33,332,493 Total Series A Pledged Taxes Additional Series C Pledged Taxes City Special Taxes (2%) 2,363,269 Fiscal Year 2004 2005 2001 2002 2003 2006 2007 2008 2009 $ 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 $ 18,961,780 3,255,453 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 13,355,612 7,105,468 3,445,491 189,929 262,991 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 34,700 319,631 35,715 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 1,386,593 563,437 1,226,013 457,415 461,606 243,955 70,322 318,886 556,095 1,038,848 1,021,862 504,146 587,620 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 1,237,672 51,586,940 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 3,790,422 55,377,362 2,490,071 2,652,152 2,741,989 3,044,645 3,374,350 3,866,902 4,232,008 4,424,358 4,383,419 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 55,970,359 Additional Series D Pledged Taxes City Road Tax (.5%) 5,574,996 Total Series D Pledged Taxes $ 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 9,479,279 $ 61,066,219 Gross Excise Tax Pledged Revenues $ 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 $ 69,240,060 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 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 4,320,000 23 13.90% 1,141 105,194,398 801 61,578,063 2008 194,322 4,661,000 24 17.10% 740 101,217,617 972 50,218,987 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 2007. Data for 2008 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 Five Years Ago 2004 115 Employer Marine Corps Air Station U. S. Army Yuma Proving Ground Yuma Regional Medical Center Yuma School District #1 Yuma County Growers Company City of Yuma Salyer American Fresh United States Border Patrol Yuma Union High School District Total 2008 Percentage of Total Employees Rank Employment 6,043 1,176 1,500 1,200 1,100 1,500 864 1,000 690 1 5 2 4 6 2 9 7 10 9.67% 1.88% 2.40% 1.92% 1.76% 2.40% 1.38% 1.60% 1.10% 24.11% 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 2008 which is the most recent data available. United States Border Patrol data not available for 2004. Employees Rank 5,360 1 3,000 2 2,080 3 1,700 4 1,335 5 1,200 6 1,002 7 1,000 8 920 9 914 10 Percentage of Total Employment 7.69% 4.31% 2.98% 2.44% 1.92% 1.72% 1.44% 1.44% 1.32% 1.31% 26.56% City of Yuma, Arizona Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2004 2005 2000 2001 2002 2003 2006 2007 2008 2009 170 179 182 188 195 195 208 226 228 241 193 109 206 113 212 113 228 103 229 105 237 105 252 110 267 122 269 122 266 122 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 44 56 17 133 76 47 1,002 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 2000 2001 2002 2003 Fiscal Year 2004 2005 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 81,347 13,746 NA NA 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 11,455 2,059 NA NA 22 22 22 23 19 24 19 9 22 11 26,000 26,000 29,358 33,993 27,781 33,003 33,965 34,938 34,919 33,996 3,934 4,586 4,482 5,308 5,519 3,285 3,122 3,247 3,160 2,673 25,851 41.0 7.9 22,727 41.0 7.9 22,129 41.0 8.0 22,723 41.0 9.3 23,490 45.0 9.3 24,734 45.0 9.1 25,726 48.0 9.3 26,169 48.0 9.5 26,543 48.0 9.5 26,868 60.0 8.2 12.0 12.0 12.2 12.2 12.3 15.6 15.6 15.6 15.6 15.6 2006 2007 2008 2009 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) 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 2001 2002 2003 2004 2005 2006 2007 2008 2009 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) 1 109 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 1 163 6 300 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 42 384 5,463 42 10 10 10 10 10 10 12 13 13 13 443 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 9 607 79* 4 2 9 380 2,100 380 2,200 416 2,300 427 2,400 437 2,600 448 2,850 470 3,000 493 3,150 501 3,267 501 3,400 249 249 255 261 266 275 290 310 320 320 Sources: Various city departments. Note: No capital asset indicators are available for the general government function. *Change in the inventory of athletic fields from counting athletic complexes versus individual fields.