City of Yuma, Arizona Comprehensive Annual Financial Report For the Year Ended June 30, 2010 City of Yuma Arizona Comprehensive Annual Financial Report CITY COUNCIL Alan L. Krieger, Mayor Cody Beeson Bobbi Brooks-Gurrola Paul B. Johnson Leslie L. McClendon Raul Mendoza Jerry Stuart City Administration Gregory K. Wilkinson City Administrator For the Fiscal Year Ended June 30, 2010 Prepared by: Finance Department Donald (Pat) Wicks, CPA City Departments City Attorney Steven W. Moore City Clerk Lynda L. Bushong Community Development Laurie L. Lineberry Director Wendy Wrenn, CPA Accounting Manager Sharon Willoughby Budget Coordinator Tahir Alhassan, CPA Minda Federmeyer Linda Johnson Accountants Utilities Jay Simonton Finance Donald (Pat) Wicks Fire Department Jack McArthur, Chief Information Technology Laura S. Neinast About the Cover: Silent sentinel: An early moon rises above the guard tower at Yuma Territorial Prison. When the State of Arizona opted to close the landmark visitor site because of budget constraints, the City of Yuma and the Yuma Crossing Heritage Area stepped in to take over operations of the state park. More than $70,000 was raised from private donations and fund-raising events to keep the park in operation and to start some much needed capital improvements. Photo courtesy of Yuma Crossing Heritage Area . Municipal Court Douglas S. Stanley, Judge Parks and Recreation Rebecca J. Chavez Police Department Jerry Geier, Chief Field Operations Joel Olea CITIZENS OF YUMA MAYOR and COUNCIL MUNICIPAL COURT CITY ADMINISTRATOR CITY ATTORNEY CITY ADMINISTRATION PARKS & RECREATION General Counsel Administration Parks/Mall Maintenance Litigation Public Affairs Recreation Prosecution Strategic Communications Risk Management Heritage Area City Clerk Parks Development Civic Center Baseball Complex Arts and Culture HUMAN RESOURCES Economic Development Human Resources Facilities Maintenance Golf Courses COMMUNITY DEVELOPMENT POLICE DEPARTMENT Administration Field Services Building Safety Support Services FINANCE Administration and Budget Accounting Customer Service Community Planning Purchasing PUBLIC WORKS INFORMATION TECHNOLOGY SERVICES Business Application And Support Fleet Services FIRE DEPARTMENT Professional Services Streets/Solid Waste Suppression Telecommunications And Support Community Risk Reduction UTILITIES Emergency Medical Services Utility Treatment Special Operations ENGINEERING Engineering/Capital Improvement Projects Utility Systems City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2010 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, 2010 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 Nine Fiscal Years Changes in Net Assets - Last Nine Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years Governmental Funds Tax Revenues by Source - 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 Nine 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 26, 2010 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, 2010. 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, 2010, 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, 2010, 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 more than $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 (MCAS) and United States Army Yuma Proving Ground (YPG) 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. MCAS will be the home of one of the first squadrons of the new Joint Strike Fighter, the new generation aircraft being adopted by all military services. YPG is working with the newly arrived NASA to test the Orion parachute system for use in bringing astronauts back to earth. Although manufacturing currently accounts for less than 10% of countywide employment, the City’s partnership with the Greater Yuma Economic Development Corporation continues to attract attention to the area. Several companies have located or expanded operations in Yuma in recent years. 1 Source: Greater Yuma Economic Development Corporation 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, general sales tax has seen a decline for three years running, with the tax registering a drop of 7.9%. Tax data show that construction and large purchases continue to be the larger areas of decline, reflecting the same recessionary pattern as the rest of the country. Planning for fiscal year 2011 anticipates no further reduction in sales tax collections. Millions Yuma’s continued as a regional retail and services center during 2010 with no additional “big box” closures of nationally-recognized stores during the year, unlike 2009. The retail classification of the sales tax showed a 3.9% drop, lower than the overall 25 decline of 7.9%, showing that retail sales continue to be 20 relatively strong. General Sales Tax 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. 15 10 5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 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 and work continued throughout 2010. The goal is to gain 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 2010, city and Federal funds combined to manage and improve both the West and East Wetlands 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 new 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. The completed Desert Dunes wastewater treatment and the Agua Viva water treatment plants means the city can now 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, 2009. This is the twenty-eighth 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 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, 2010. 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 $15.1 million for the fiscal year, $9.1 million of which was generated by governmental activities while $6 million was due to businesstype activities of the City. • The City’s combined net assets total $440.9 million at June 30, 2010. Of this amount, $69.3 million is available (unrestricted) to finance ongoing programs, $40.3 million in governmental programs and $29 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 $440.9 million at the close of the fiscal year. Governmental Activities Business-type Activities June 30, Net Assets 2010 (millions) Current and other assets Capital assets $ Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 112.5 307.7 2009 $ 127.2 291.8 2010 $ 61.3 339.1 Total 2009 $ 65.9 337.6 2010 $ 173.8 646.8 2009 $ 193.1 629.4 420.2 419.0 400.4 403.5 820.6 822.5 142.3 30.7 149.1 31.9 200.0 6.7 208.3 7.5 342.3 37.4 357.4 39.4 173.0 181.0 206.7 215.8 379.7 396.8 192.1 14.8 40.3 247.2 129.2 70.4 38.4 238.0 160.9 3.8 29.0 193.7 158.4 2.0 27.3 187.7 353.0 18.6 69.3 440.9 287.6 72.4 65.7 425.7 $ $ $ $ $ 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 $440.9 million, up $15.1 million from the prior year. Governmental activities accounted for $9.1 million of the increase while business-type activities amounted to $6 million. Most of the increase would be attributable to capital asset acquisitions, particularly infrastructure, as governmental capital assets increased $15.9 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. 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. 7 MANAGEMENT’S DISCUSSION AND ANALYSIS 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 Governmental activities 2010 $ Total revenues Business-type activities 2009 11.4 3.7 5.9 $ 2010 2009 $ Total 2010 2009 38.9 9.9 $ 49.8 3.7 9.8 $ 52.7 1.8 14.7 13.8 1.8 4.8 $ 38.4 3.9 9.5 34.2 3.0 28.2 5.8 1.1 8.9 36.8 3.0 31.3 3.9 2.9 0.2 1.1 9.5 34.2 3.0 28.2 5.8 1.3 8.9 36.8 3.0 31.3 3.9 4.0 102.8 107.2 42.5 49.9 145.3 157.1 10.5 39.2 14.0 13.9 4.9 5.0 6.3 - 11.6 41.1 16.0 16.3 4.9 5.5 6.6 - 20.2 13.7 2.5 20.8 13.8 2.8 10.5 39.2 14.0 13.9 4.9 5.0 6.3 20.2 13.7 2.5 11.6 41.1 16.0 16.3 4.9 5.5 6.6 20.8 13.8 2.8 93.8 102.0 36.4 37.4 130.2 139.4 0.1 0.1 (0.1) (0.1) 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 $ 9.1 $ 5.3 $ 6.0 $ 12.4 $ 15.1 $ 17.7 For the fiscal year, net assets increased $15.1 million, with $9.1 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 $102.8 million for fiscal year 2010, down from 2009, mostly in charges for services, sales taxes and intergovernmental revenues. Local sales taxes remain the largest revenue source for the City and are comprised of the 1% general sales tax along with a .5% road tax and a .2% public safety tax. State-shared revenues are the City’s second largest revenue source. State-shared revenues include state sales tax, urban revenue sharing (income tax), auto in-lieu tax and highway user funds (gas tax). Sales taxes and state shared revenues account for 60% of governmental revenues for the year, which is down from 2009. Charges for services, the third segment of governmental activities revenues, count building permits and inspections, fines, recreation fees, solid waste environmental fees, police services and civic center rental fees among its largest sources. The charges for services category amounts to 11% of governmental revenues. Property taxes represent 9% 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 8 MANAGEMENT’S DISCUSSION AND ANALYSIS 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 7.3% from 2009 as Yuma continues to feel the impact of the recession. Intergovernmental revenues dropped by $3.1 million or 9.9%. State-shared income taxes declined 13.7% from 2009, as anticipated, while state-shared sales taxes declined by 7.7% because of the state’s slowing economic output. State-shared gas tax slid by 5.7% as the state continues to balance its budget by reducing other entities’ revenue. Charges for services decreased by $2.4 million (17.4%) as the construction industry slowdown resulted in lower impact fee collections. RevenuesGovernmental Activities Sales taxes 33% Franchise taxes 3% Intergovernmental revenues 27% Property taxes 9% Capital grants and contributions 6% Operating grants and contributions 4% Unrestricted grants and contributions 6% Unrestricted investment earnings 1% Charges for services 11% Expenses Millions Governmental expenses totaled $93.8 million for Expenses and Program Revenues-Governmental Activities the fiscal year. Of the 45.0 expenses, 41.8% or $39.2 million is related to public 40.0 safety for police, fire and 35.0 municipal court services. Expenses Parks, recreation and 30.0 Program Revenues culture expenses 25.0 amounted to $13.9 million, or 14.8% and 20.0 environmental health and protection was $4.9 15.0 million, 5.2%, while 10.0 streets and community design and development 5.0 expenses amounted to 14.9% and 5.3% General Public safety Streets Parks, Environmental Community Interest on respectively. Interest on government recreation and health and design and long-term debt culture protection development long-term debt was $6.3 million, or 6.7% of governmental expenses. Overall, governmental activities expenses dropped 8%, or $8.1 million, from 2009. This decrease reflects a concerted effort city-wide to reduce expenditures because of the recessionary economy. The largest decreases included Parks and Recreation at $2.4 million (14.9%), followed by Public Safety at $1.9 million (4.5%), Streets at $1.9 million (12.5%) and General Government at $1.0 million (8.6%), respectively. Most savings were seen from reduced personal services, as the city used attrition savings and a short period of employee furloughs to reach its goal. 9 MANAGEMENT’S DISCUSSION AND ANALYSIS 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 $38.4 million in charges for services, just under 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 $3.9 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 less than 1% of revenues for the City’s business activities. Revenues-Business-type Activities Charges for services 90% Capital grants and contributions 9% Investment earnings 1% Expenses Water and wastewater services account for 93% of the City’s business-type activities with golf courses making up the remaining 7%. Water expenses amounted to $20.2 million while wastewater expenses totaled $13.7 million. Desert Hills Golf Course and Arroyo Dunes Golf Course recorded expenses of $2.2 million and $.3 million, respectively, for a total of $2.5 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 - t y p e A c t iv it ie s A B C D C o n tr ib u tio n s E F C h a r g e s f o r S e r v ic e s 30 Expenses 25 Millions 20 15 10 5 0 W a te r W a s t e w a te r G o lf 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. 10 MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental funds. The combined fund balances of governmental funds for the fiscal year ended June 30, 2010, is $58.6 million. This represents a $12 million decrease in fund balances. A review of some of the more significant funds follows. General Fund The fund balance of the General Fund grew by $3.2 million for the fiscal year. Revenues decreased by $3.4 million. Sales taxes, the city’s largest source of General Fund revenues, declined $1.5 million (7.9%) to $17.5 million as Yuma continued to feel the effects of the world-wide recession. State-shared sales taxes showed a similar decline of 7.8%, down $.5 million to $6.5 million. Total expenditures dropped significantly to $50.8 million as the city reduced its workforce through attrition and decreased capital and other discretionary expenditures to deal with its declining revenues. Highway User Revenue Fund (HURF) This fund, which accounts for the expenditure of state-shared gasoline taxes, showed a slight increase in fund balance of $.2 million for the year. The City’s portion of those taxes dropped by 5.7% for the fiscal year to $6.6 million. The state legislature continues to reduce cities’ share of this important revenue source. The city swapped its Engineering Department and its retention basin maintenance expenditures between HURF and the City’s Road Tax Fund so that all maintenance expenditures were made in the HURF Fund, but little savings was realized. Instead, expenditures were reduced in every division. In addition, HURF no longer finances capital projects. Overall, expenditures were reduced from 2009 by $1.8 million (22.5%) to $6.5 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 2010 to $8.7 million. Capital expenditures dropped from 2009, 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 2010, revenues rose to $7.5 million, due principally to a $3 million increase in Federal grants. Again this year, Homeland Security was the primary source of grants, funding the Yuma Regional Communication System and Operation Stone Garden with continued Bureau of Reclamation funding for 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. Community Development Block Grant revenues decreased slightly to $1.2 million for 2010. Debt Service Debt Service Fund expenditures decreased to $13.1 million due to a one-time savings from the refunding of the 2001 Series Municipal Property Corporation Bond. Fund balance reflects debt service reserves accumulated in accordance with the development agreement for the Yuma Palms regional center. Capital Projects Fund The Capital Projects Fund’s fund balance dropped to $31.2 million this year as the city continued to expend the proceeds of the 2007 bond sale. Capital expenditures decreased in 2010 to $18.9 million since expenditures of impact fees dropped with the completion of a major project in 2009. 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Proprietary funds. The City’s enterprise funds posted an overall increase in net assets of $6 million for the fiscal year ended June 30, 2010. 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 decreased by $.8 million or 3.7% for the year ending June 30, 2010. This is due to an overall decline in consumption of 4.8% during the year with no rate increase to offset the lower use. Operating expenses declined by 2% and the fund produced operating income of $8.1 million. A decrease in interest expense helped bolster net assets. Although down by $1.4 million due to lower construction activity, capital contributions pushed the fund’s net assets increase to $4 million. Wastewater Enterprise Fund The Wastewater Fund operating revenues increased 2.5% over fiscal 2009. Rate-based charges increased 4.5% to $12.2 million; however, contractual revenues declined based on shared charges from lower capital expenditures. Operating expenses declined negligibly with income from operations improving to $2.6 million. Like the Water Fund, capital contributions dropped because of constructions declines by some $4.5 million. With slightly lower interest expenses, the fund’s net assets increased by $2.4 million. Golf Courses A small increase in greens fees was not enough to counter slightly larger drops in other operating revenues for Desert Hills Golf Course, and the fund saw a 2.5% decrease in operating revenues. With the city’s movement to lower operating expenses, the fund also dropped operating expenses by almost 15% to $2.1 million but still suffered a small operating loss. Arroyo Dunes Golf Course incurred an 11.5% decrease in operating revenues Operating expenses dropped for Arroyo Dunes by 6.9% for the year but this was not enough to offset the lower revenues, leading to an operating loss of $44,801 for the year. The city will continue to operate the courses and implement strategies to improve their financial outlook, including the privatization of both courses. GENERAL FUND BUDGETARY HIGHLIGHTS A detailed budgetary comparison schedule for the fiscal year ended June 30, 2010, can be found starting on page 55. A summary of that schedule follows: Final Actual Variance with Final 31,888,857 22,085,000 5,252,683 446,500 $ 31,888,857 22,085,000 5,252,683 446,500 $ 29,970,062 21,431,291 5,832,351 622,258 $ (1,918,795) (653,709) 579,668 175,758 59,673,040 59,673,040 57,855,962 (1,817,078) 59,135,496 4,334,257 59,180,054 4,334,257 50,782,608 3,876,960 8,397,446 457,297 63,469,753 63,514,311 54,659,568 8,854,743 3,196,394 $ 7,037,665 Budget Original Revenues and Transfers In Taxes Intergovernmental Other $ Transfers In Total Expenditures and Transfers Out Expenditures Transfers Out Total Change in Fund Balance $ (3,796,713) $ (3,841,271) $ General Fund tax revenues didn’t meet expectations because of decreases in two key areas: city and state sales taxes. Even with a promising increase in building permits of 5.4%, General Fund revenues ended the year down $3.4 million. City and state sales taxes declined by 7.9% and 7.8%, respectively. Each area can be attributed directly to the recessionary economy and the consumer’s unwillingness to spend rather than a direct change in the city’s economic base. Expenditures for the fund came in at $8.4 million under budget with the largest contributions coming from Public Safety at $3.3 million and General Government adding $2.5 million, although savings in budget occurred in most departments with the City’s drive to reduce expenditures throughout the year. All areas of expenditure reduction 12 MANAGEMENT’S DISCUSSION AND ANALYSIS were targeted, primarily personal services expenditures through attrition savings and elimination of mertit pay increases. In addition, all departments incurred up to five days of personnel furloughs. Combined with discretionary spending reductions, such as travel and capital expenditures, the General Fund’s expenditures declined more than the loss of revenues to produce a $3.2 million increase in fund balance for the year. CAPITAL ASSETS At June 30, 2010, the City of Yuma’s investment in capital assets in both governmental and business-type activities amounted to $646.8 million, net of depreciation. This includes land, buildings, equipment, and infrastructure (roadways and bridges). Capital assets for governmental activities increased by 5.4% while business-type capital assets increased less than one percent. These changes included the following: • • • • The main Police facility underwent $3 million in renovations for capacity improvements. Fire Station #6 was completed. th Several main water lines were upgraded (8 Street, Avenue B). The Figueroa Water Pollution Control Facility aerator upgrades were completed. Governmental Activities July 1, 2009 Land Buildings Improvements Infrastructure Equipment Construction in Progress Accumulated Depreciation Total $ $ Net Additions/ Deletions 53.1 $ 66.8 38.1 159.9 51.9 79.8 (157.8) 291.8 $ June 30, 2010 1.4 $ 11.9 1.9 18.0 0.8 (6.2) (11.9) 15.9 Change in Capital Assets (In Millions) Business-type Activities $ July 1, 2009 54.5 $ 78.7 40.0 177.9 52.7 73.6 (169.7) 307.7 $ Net Additions/ Deletions 10.0 $ 8.0 151.3 4.7 255.0 (91.4) 337.6 $ 0.4 $ 73.3 0.1 (65.8) (6.6) 1.5 Total June 30, 2010 $ 10.4 $ 8.0 224.6 4.8 189.2 (97.9) 339.1 $ 64.9 86.7 264.6 177.9 57.5 262.8 (267.6) 646.8 Additional information on capital assets can be found in Note II-E starting on page 42. DEBT ADMINISTRATION At June 30, 2010, after scheduled debt payments, governmental activity debt decreased to $142.3 million while business activity debt decreased to $200 million. During the year, the City issued $29.53 million MPC bonds refunding its 2001 Series B. The City reduced its overall debt service requirements by $1.86 million over the life of the issue. 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 $149.4 million, well above the outstanding general obligation debt of $4.04 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+”. All other bonds are rated “AA-”. The underlying ratings of Moody’s Investor Services and Standard and Poor’s are “Aa3” and “AA-“, respectively. With the exception of the improvement district bonds, all City bond issues are insured, and while the city enjoys higher ratings, the guarantors can no longer provide “AAA” rating as a result of recent ratings reviews of the insurance companies. A summary of the City’s long-term debt follows. Additional information on the City’s long-term debt can be found in Note II-G on pages 45-49. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS Summary of Long-Term Debt (Millions) Business-type Governmental activities activities 2010 General Obligation Bonds Yuma Municipal Property Corporation Bonds Net Unamortized Premium/Issuance Costs Improvement Districts Contracts Payable Compensated Absences Total Long-Term Debt $ - 2009 $ - 2010 $ 4.0 2009 $ 5.3 Total 2010 $ 4.0 2009 $ 5.3 131.0 136.9 120.1 123.1 251.1 259.9 1.1 6.8 3.5 $ 142.3 1.1 7.8 3.3 $ 149.1 3.4 72.4 $ 200.0 3.5 76.5 $ 208.4 4.4 6.8 72.4 3.5 $ 342.3 4.8 7.8 76.5 3.3 $ 357.4 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 2,161 residents to 205,940 with the City of Yuma representing 46% of the county’s population. Since 2000, the City has grown by 32% to an estimated 94,361 at July 1, 2009, 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 well over $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 7.3% decrease this year, compared to its historic growth rate of 7%, an unprecedented three-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 2011, revenues were projected with no further projected reduction in sales taxes. Although some sales tax statistics show a downward trend, positive events occurred during 2010: • • • General Motors Corporation completed its move of its Desert Proving Ground to U.S. Army Yuma Proving Ground (YPG), allowing for a testing partnership with the very active military testing facility. The Marine Corps Air Station announced its likely selection as the first base for the F-35 Joint Strike Fighter, the next generation aircraft of the military. NASA has established a presence in Yuma. The NASA team will be developing the Orion parachute system, used to bring astronauts back to earth, and tested at YPG. 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, 2010 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 94,561,618 $ 17,615,057 (360,473) 600,332 70,564 Total 54,309,325 $ 148,870,943 6,433,952 24,049,009 360,473 204,102 804,434 10,806 81,370 128,083,304 179,583,384 420,153,786 199,608,158 139,486,246 400,413,062 327,691,462 319,069,630 820,566,848 4,900,805 5,574,283 2,432,397 17,746,595 1,300,907 1,077,055 4,268,504 74,230 6,201,712 6,651,338 6,700,901 17,820,825 6,360,000 135,971,812 172,985,892 8,562,243 191,466,374 206,749,313 14,922,243 327,438,186 379,735,205 192,144,667 160,882,978 353,027,645 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 540,202 3,753,808 4,294,010 3,696,041 3,696,041 8,270,424 8,270,424 2,255,328 2,255,328 40,261,232 29,026,963 69,288,195 $ 247,167,894 $ 193,663,749 $ 440,831,643 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, 2010 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 $ 10,563,092 $ 1,918,936 $ 39,223,854 2,642,222 13,969,066 - 109,919 $ 2,263,055 - 13,863,306 1,161,823 44,524 4,905,352 1,878,741 - 4,980,882 3,768,846 6,290,606 1,241,800 - 93,796,158 11,370,568 20,277,325 13,672,831 2,495,597 22,279,469 13,760,022 2,315,523 36,445,753 38,355,014 $ 130,241,911 $ 49,725,582 $ Capital Grants and Contributions 3,659,298 Business-type Activities Total $ (8,534,237) $ 2,819,471 (31,499,106) (13,969,066) - $ (8,534,237) (31,499,106) (13,969,066) 2,306,549 (10,350,410) - (10,350,410) (3,026,611) - (3,026,611) 817,600 5,943,620 - 1,821,304 2,147,411 - - 3,968,715 3,659,298 $ 9,912,335 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 847,364 - 847,364 (6,290,606) - (6,290,606) (72,822,672) - (72,822,672) (72,822,672) 9,498,177 34,176,593 3,009,794 28,238,926 5,776,480 1,138,679 81,838,649 95,644 81,934,293 9,111,621 238,056,273 3,823,448 2,234,602 (180,074) 5,877,976 5,877,976 217,824 217,824 (95,644) 122,180 6,000,156 187,663,593 3,823,448 2,234,602 (180,074) 5,877,976 (66,944,696) 9,498,177 34,176,593 3,009,794 28,238,926 5,776,480 1,356,503 82,056,473 82,056,473 15,111,777 425,719,866 $ 247,167,894 $ 193,663,749 $ 440,831,643 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, 2010 Major Special Revenue Funds General Assets Cash and Investments Cash with Fiscal Agents Receivables, Net of Allowances for Uncollectibles: Accounts Receivable Intergovernmental Special Assessments Delinquent Property Taxes Accrued Interest Due from Other Funds Inventory, at cost Prepaid Items Total Assets and Other Debits Highway Users Revenue $ $ 18,419,617 $ - 1,428,258 - 486,017 2,560,082 20,169 374,969 43,033 2,256,293 91,353 64,225 24,315,758 $ 4,457 593,922 1,572 2,028,209 City Road Tax $ $ Grants 1,864,450 25,628 619,267 5,913 2,970 2,518,228 $ $ 500 3,651,219 583 3,652,302 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 $ $ 812,438 3,878,442 169,263 503,544 5,363,687 $ 209,906 174,129 224,615 608,650 $ 98,303 112,830 27,924 239,057 $ 91,353 64,225 - - 761,779 1,985,923 - - - 87,633 - - - - 15,961,158 18,952,071 1,419,559 1,419,559 24,315,758 $ 2,028,209 The accompanying notes are an integral part of these financial statements. 22 2,970 - 2,000,388 52,158 1,411,790 187,966 3,652,302 - 2,276,201 2,279,171 $ 2,518,228 $ 3,652,302 Community Redevelopment Debt Service $ $ $ $ $ - Capital Projects Other Nonmajor Governmental Funds Total 691,960 $ 7,731,643 40,617,492 $ - 4,030,738 - $ 67,052,515 7,731,643 1,179,371 148,195 1,327,566 6,815,000 966 $ 15,239,569 $ 152,180 251,950 10,956 175,699 41,208,277 $ 307,715 249,513 7,890 9,894 405 4,606,155 2,155,868 8,074,148 6,835,169 374,969 70,913 2,431,992 101,247 67,600 $ 94,896,064 29,764 19,600 107,797 1,170,405 1,327,566 $ 161,970 $ 5,290,000 2,432,397 6,815,000 14,699,367 - 540,202 - - - - - 540,202 1,327,566 $ 15,239,569 $ 763,167 9,178,484 9,941,651 $ - 151,047 131,915 146,802 13,625 443,389 9,894 405 - 31,266,626 - - - $ 4,226,983 4,369,074 5,290,000 1,666,389 2,432,397 169,263 18,121,563 36,275,669 101,247 67,600 540,202 32,028,405 1,985,923 50,000 87,633 50,000 31,266,626 4,102,467 4,162,766 15,961,158 7,798,227 58,620,395 41,208,277 $ 4,606,155 $ 94,896,064 23 City of Yuma, Arizona Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets June 30, 2010 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. $ 58,620,395 297,327,713 374,968 (3,488,401) (125,665,000) (3,575,000) (3,240,000) (1,073,411) 27,886,630 $ 247,167,894 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, 2010 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 Issuance Costs Total Expenditures Other Financing Sources/(Uses): Issuance of Long-Term Debt Premium on Issuance of Long-Term Debt Payment to Refunded Bond Escrow Transfers In Transfers Out Total Other Financing Sources/(Uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending $ Grants 29,970,062 $ 1,412,731 21,431,291 2,459,367 1,436,928 331,201 192,124 57,233,704 6,626,027 6,677 179,173 6,811,877 7,408,841 31,937,107 7,898,086 967,835 5,415,417 - 30,310 120,396 - 1,446,751 3,364,563 143,701 15,599 - 2,367,631 - Revenues Over/(Under) Expenditures City Road Tax $ 8,729,333 479,622 48,165 9,257,120 $ 2,779,581 - - 7,500,933 6,487 42,585 7,550,005 172,249 2,263,437 44,613 1,539,892 138,949 456,016 49,308 750,000 7,550,005 50,782,608 6,519,247 4,458,422 6,451,096 292,630 4,798,698 - 622,258 (3,876,960) (3,254,702) (101,944) (101,944) 3,211 (4,792,802) (4,789,591) - 3,196,394 190,686 9,107 - 15,755,677 1,228,873 2,270,064 - 18,952,071 $ 1,419,559 The accompanying notes are an integral part of these financial statements. 26 $ 2,279,171 $ - Community Redevelopment $ 1,199,234 17,798 17,580 1,234,612 Debt Service $ 817,600 302,420 1,120,020 $ 2,673,873 55,171 302,770 3,031,814 $ Total Governmental Funds 7,861,423 $ 226,308 1,873,283 552,963 42,566 23,177 10,579,720 46,560,818 1,412,731 36,983,793 7,006,523 1,436,928 817,600 1,752,339 85,151 762,989 96,818,872 - - - 159,360 64,308 2,676,388 7,740,450 35,232,687 8,194,998 10,619,087 - - - 2,882,977 4,480,434 - - 311,389 - 4,870,390 2,526,931 218,886 2,930,886 14,043,534 1,576,255 139,646 293,157 544,853 - 218,886 3,386,902 15,966,065 2,871,108 278,595 6,315,000 6,344,983 419,563 13,079,546 18,909,207 6,932,432 6,315,000 6,344,983 419,563 109,466,079 - (11,959,526) (15,877,393) 3,647,288 (12,647,207) - 29,530,000 487,307 (29,378,025) 11,317,547 11,956,829 (205,108) (205,108) 2,620,929 (5,491,487) (2,870,558) 29,530,000 487,307 (29,378,025) 14,563,945 (14,468,301) 734,926 - (2,697) (16,082,501) 1,194,438 40,174 1,234,612 $ Capital Projects Other Nonmajor Governmental Funds - $ 776,730 542,899 47,349,127 3,386,036 540,202 $ 31,266,626 $ 4,162,766 27 (11,912,281) 70,532,676 $ 58,620,395 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, 2010 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 (11,912,281) 59,643 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 (11,320,646) 25,248,487 (900,497) 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 6,315,000 Increase in compensated absences expense not recorded in governmental funds (199,630) The net effect of miscellaneous transactions involving capital assets (trades of land for rights-of-way) is to decrease net assets. (464,615) Investment earnings of the internal service funds are general revenues on the statement of activities 93,038 Other financing uses in governmental funds reflecting payment to escrow agent in refunding debt are recorded on the statement of net assets as reduction in long-term liability 29,378,025 Long-term debt proceeds are recorded as other financing sources in governmental funds (29,530,000) Issuance costs of refunding debt recorded in governmental activities when paid are amortized over the life of the bond issue on statement of activities 419,562 Other financing sources in governmental funds related to premium on issuance of debt are amortized over the life of the bond issue on statement of activities (487,307) Interest payments accrued in government-wide statements are not recorded in governmental activities until paid 54,378 Net revenues of internal service funds in excess of expenses reduce governmental activities expenses on the statement of activities (3,418,016) 5,776,480 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 9,111,621 City of Yuma, Arizona Statement of Net Assets Proprietary Funds June 30, 2010 Business-Type Activities-Enterprise Funds Assets Current Assets: Cash and Investments Receivables, Net of Allowance for Uncollectibles: Accounts Receivable Intergovernmental Contracts Receivable 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 $ 25,775,148 $ 5,176,050 4,119,191 646 24,897 121,059 7,096 30,048,037 Other Funds $ Totals Governmental Activities Internal Service Funds 399,617 $ 31,350,815 2,089,066 180,900 16,369 1,510 7,463,895 2,167 414 302 83,043 2,200 487,743 6,210,424 181,960 41,568 204,102 10,806 37,999,675 75,754 19 28,217 499,085 2,964 20,383,499 7,519,038 1,373,307 2,443,655 396,110 11,732,110 41,780,147 2,245,947 8,980,453 11,226,400 18,690,295 487,743 9,764,985 1,373,307 11,424,108 396,110 22,958,510 60,958,185 20,383,499 1,681,476 2,911,198 120,455,259 2,716,379 128,625,619 (57,321,870) 199,068,061 199,068,061 240,848,208 8,725,291 1,931,133 101,186,011 1,765,332 60,575,772 (36,517,724) 137,665,815 137,665,815 156,356,110 10,406,767 7,945,196 224,656,937 4,810,611 189,201,391 (97,926,498) 339,094,404 339,094,404 400,052,589 219,610 19,251 189,631 28,030,508 (18,120,025) 10,338,975 10,338,975 30,722,474 3,102,865 3,015,667 328,900 (4,086,904) 2,360,528 2,360,528 2,848,271 $ 19,777,460 421,658 574,841 43,006 2,709,600 2,271,509 6,020,614 210,906 377,558 195,664 714,150 719,355 2,217,633 30,894 124,656 51,620 207,170 663,458 1,077,055 238,670 3,423,750 2,990,864 51,620 8,445,417 504,559 140,030 1,065,179 765,603 2,475,371 180,709 396,110 1,989,014 688,654 956,250 73,731 4,284,468 10,305,082 60,630 22,610 1,954,559 515,255 2,553,054 4,770,687 207,170 241,339 396,110 22,610 3,943,573 1,203,909 956,250 73,731 6,837,522 15,282,939 2,475,371 36,160,212 92,874,250 2,629,222 131,663,684 141,968,766 32,089,229 26,915,750 797,711 59,802,690 64,573,377 207,170 68,249,441 119,790,000 3,426,933 191,466,374 206,749,313 2,475,371 79,726,659 78,795,791 2,360,528 160,882,978 10,338,975 2,890,432 16,262,351 $ 98,879,442 863,376 12,123,566 $ 91,782,733 280,573 $ 2,641,101 3,753,808 28,666,490 193,303,276 17,908,128 28,247,103 Adjustment to reflect consolidation of internal service fund activities related to enterprise funds 360,473 $ 193,663,749 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, 2010 Business-Type Activities-Enterprise Funds Water Fund Operating Revenues: Metered Water Sales Commercial Raw Water Wastewater Charges Meters, Connections and Services Green Fees and Concessions Equipment Rental Miscellaneous Charges Total Operating Revenues $ Operating Expenses: Operations and Maintenance Depreciation Total Operating Expenses Operating Income/(Loss) Non-Operating Revenues/(Expenses): Interest Gain/(Loss) on Disposal of Assets Interest and Fiscal Agent Fees Miscellaneous Revenues Total Non-Operating Revenues/(Expenses) Income/(Loss) before Contributions and Transfers Wastewater Fund 21,651,391 $ $ 215,958 13,699,148 Other Funds - Totals $ 21,651,391 215,958 13,699,148 1,963,588 349,059 2,312,647 342,752 1,963,588 349,059 38,221,896 5,069,944 5,069,944 10,528,999 3,581,142 14,110,141 8,474,810 2,642,007 11,116,817 2,152,622 231,185 2,383,807 21,156,431 6,454,334 27,610,765 6,343,005 2,601,198 8,944,203 8,071,332 2,610,959 (71,160) 10,611,131 (3,874,259) 137,667 (5,988,094) 97,996 78,900 (668) (2,433,305) 32,246 1,257 2,876 217,824 (668) (8,421,399) 133,118 93,038 43,321 - (5,752,431) (2,322,827) 4,133 (8,071,125) 136,359 (67,027) 2,540,006 1,821,304 (62,683) 2,147,411 (32,961) 232,571 (232,571) 3,968,715 232,571 (328,215) Change in Net Assets 4,077,522 2,402,582 (67,027) 6,413,077 Net Assets - Beginning 94,801,920 89,380,151 $ - 28,628 13,727,776 288,132 Net Assets - Ending $ 314,124 22,181,473 2,318,901 Capital Contributions Transfers In Transfers Out Governmental Activities Internal Service Funds 98,879,442 $ 91,782,733 $ 30 (3,737,900) 31,985,003 2,641,101 $ (412,921) $ The accompanying notes are an integral part of these financial statements. - 2,708,128 Adjustment for consolidation of internal service fund activities related to enterprise funds Change in net assets of business-type activities (3,737,900) 6,000,156 28,247,103 City of Yuma, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2010 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 $ 21,955,411 $ 13,369,260 $ 2,313,699 $ 37,638,370 (4,183,951) (2,724,882) (982,490) (7,891,323) (6,303,503) (5,724,123) (1,202,833) (13,230,459) 97,996 32,246 2,881 133,123 11,565,953 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 4,952,501 16,649,711 5,062,155 (1,109,242) (867,964) (3,774,399) (689,450) 232,571 (232,571) 232,571 (328,215) - (62,683) (32,961) - (95,644) - 1,510,829 (6,451,413) (3,417,649) (2,032,020) (6,180,900) 1,825,823 (1,486,524) (680,800) (2,081,309) (2,517,635) - 3,336,652 (7,937,937) (4,098,449) (4,113,329) (8,698,535) (276,506) 207,205 - (16,571,153) (4,940,445) - (21,511,598) (69,301) (4,905,159) Cash and Cash Equivalents, July 1 42,412,417 91,321 91,321 1,597 1,597 70,416 132,854 (4,701,889) 16,332,034 266,763 59,011,214 20,401,871 399,617 $ 54,309,325 $ 19,777,460 (71,160) $ 10,611,131 $ (3,874,258) $ 37,507,258 $ 16,402,450 $ 8,071,332 $ 2,610,959 $ Adjustments to Reconcile Operating Income/(Loss) Depreciation and Amortization Expense 3,581,142 2,642,007 (Increase)/Decrease in Accounts Receivable (212,075) (356,599) (Increase)/Decrease in Inventories 16,540 (Increase) in Deposits (1,600) (Increase)/Decrease in Prepaid Items (2,907) (1,425) Increase/(Decrease) in Accounts Payable (25,731) 1,061 Increase in Accrued Payroll and Related Taxes 55,244 26,169 (Decrease) in Claims Incurred but Not Reported Increase/(Decrease) in Customer Deposits (13,988) (1,917) 97,996 32,246 Other Operating Activity Revenue 3,494,621 2,341,542 Total Adjustments $ 11,565,953 $ 4,952,501 $ 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 $ (32,961) 162,724 162,724 Reconciliation of Operating Income/(Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss) $ 131,257 Internal Service Funds (62,683) Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, June 30 Wastewater Fund 255,642 255,642 231,185 2,775 11,209 5,549 (16,983) (32,475) (1,723) 2,880 202,417 131,257 $ 134,340 134,340 (624,411) 6,454,334 (565,899) 27,749 (1,600) 1,217 (41,653) 2,601,198 2,399 45,792 (637) 366,657 48,938 (17,628) 133,122 6,038,580 16,649,711 (20,557) 189,956 3,184,808 (689,450) $ 177,211 $ 310,475 55,614 $ 321,588 - $ 232,825 632,063 $ - 487,686 $ 377,202 $ - $ 864,888 $ - 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, 2010 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, 2010 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, 2010 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, 2010 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, 2010 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, 2010, the estimated amounts of unbilled revenues for the Water and Wastewater Enterprise Funds and the Solid Waste Special Revenue Fund are $2,647,712, $1,181,748, and $175,675, 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, 2010 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, $2,804,851 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 $312,715, $201,764, $66,487 and $8,937 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, 2010, the amount accumulated in sick pay and related benefits is $7,389,714, including $184,879 attributable to Internal Service Funds and $996,881 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, $683,550, 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 $17,399 and Water, Wastewater, and Desert Hills and Arroyo Dunes Golf Course Enterprise Funds of $67,112, $47,227, $10,899 and $1,530 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, 2010 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, 2010, the City’s deposits had a carrying value of $210,398 and a bank balance of $2,164,583. 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, 2010, there are no deposits exposed to custodial credit risk. The petty cash and change fund balances totaled $26,660. 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, 2010 were as follows: Investment Type Fair Value US Treasury Notes/Bills $ 17,993,169 Commercial Paper $ 2,899,186 US Agencies: Federal Farm Credit Bank 4,502,344 Federal Home Loan Bank 32,147,901 Federal Home Loan Mtg. Corp. 12,564,075 Federal National Mtg. Assoc. 16,411,875 Money Market Funds 37,816,283 Wells Fargo-Bus Market Fund 15,021,264 9,364,231 State Investment Pool $ 148,720,328 Total Value Investment Maturities in Years < 1 Year $ 17,993,169 $ 2,899,186 2,016,250 4,057,874 8,906,094 37,816,283 15,021,264 9,364,231 $ 98,074,351 $ $ 1-2 Years - $ $ 2-3 Years - 3-5 Years $ $ - 4,502,344 19,123,838 7,503,400 2,996,250 - 11,007,813 1,002,801 4,509,531 - - $ 34,125,832 $ 16,520,145 - $ 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; 39 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 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; 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, 2010, all investments, with the exception of the State Investment Pool, are rated AAA or A-1 by Standard and Poor’s and Aaa or P-1 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% 56% 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% 2% Maximum per issuer...........................................................................10% of total C. P 2% Repurchase Agreements.............................................................................................. 100% 0% Money Market Funds.................................................................................................... 100% 35% State Investment Pool .................................................................................................. 100% 7% 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 no investments with maturities greater than three years, and there are no holdings with a stated maturity beyond five years. The portfolio at June 30, 2010 had a weighted average maturity of 326 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 40 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 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 November and May, respectively. Liens are filed when taxes are delinquent for two years. Assessed values, levies and collections for fiscal year 2008-09 (Tax Year 2008) and fiscal year 2009-10 (Tax Year 2009), follow: Tax Year 2008 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 $ $ $ $ $ $ 560,857,139 1.5570 8,732,640 699,754,765 None 8,402,121 143,441 315,325 Tax Year 2009 $ $ $ $ $ $ 638,301,193 1.4706 9,386,857 747,149,498 None 9,023,484 233,149 374,969 C. Accounts Receivable Receivable balances are stated net of an allowance for doubtful accounts. Within the Special Revenue Solid Waste Fund, an allowance account is established to record the estimated uncollectible refuse collection billings. Within the Water and Wastewater Enterprise Funds, allowance accounts have been established to record estimated uncollectible water and wastewater billings. No allowance account has been made for other types of receivables. The balances of these accounts are as follow: Delinquent Intergovern- Special Property Accrued mental Assessments Taxes Interest Accounts General Highway User Revenue City Road Tax Grants Community Redevelopment Debt Service Capital Projec ts W ater W astewater Other Funds-Governmental Other Funds-Enterprise Internal Service Total $ 486,017 4,457 25,628 500 1,179,371 152,180 4,119,191 2,089,066 307,715 2,167 75,754 $ 2,560,082 593,922 619,267 3,651,219 148,195 251,950 646 180,900 249,513 414 19 $ 20,169 6,815,000 - $ 374,969 - $ $ 8,442,046 $ 8,256,127 $ 6,835,169 $ 374,969 $ 140,698 Allowance Amount 2010 Special Revenue Funds Solid Waste Enterprise Funds: W ater W astewater $ 6,160 146,061 75,744 2009 $ 5,527 121,404 51,855 41 43,033 1,572 5,913 583 966 10,956 24,897 16,369 7,890 302 28,217 Total $ 3,484,270 599,951 650,808 3,652,302 1,327,566 6,815,966 415,086 4,144,734 2,286,335 565,118 2,883 103,990 $ 24,049,009 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 D. Due from Other Governments (Intergovernmental Receivables) Amounts due from other government units at June 30, 2010, are as follows: Agencies Federal State County Local $ 2,104,791 591,016 619,267 11,076 251,950 $ 443,730 2,906 - 247,623 17 - 1,873 Total Governmental Funds Major Funds General Highway User Revenue City Road Tax Grants Community Redevelopment Capital Projects Non-major Funds Public Safety Tax Solid Waste Mall Maintenance Enterprise Funds: Major Funds Water Wastewater Non-major Funds Desert Hills Golf Course Internal Service Funds Equipment Maintenance Total $ 10,516 3,640,143 148,195 - $ 1,045 - $ 2,560,082 593,922 619,267 3,651,219 148,195 251,950 - 247,623 17 1,873 646 180,900 134,411 646 - - 46,489 - 414 - - 414 - 19 - - 19 $ 3,933,265 $ 3,826,819 $ 448,509 $ 47,534 $ 8,256,127 E. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2010, follows: Balance June 30, 2009 $ 53,144,799 79,765,235 Increases $ 2,174,485 17,875,647 Decreases $ 834,686 24,042,176 Balance June 30, 2010 $ 54,484,598 73,598,706 Total Capital Assets Not Being Depreciated 132,910,034 20,050,132 24,876,862 128,083,304 Other Capital Assets: Buildings Improvements Infrastructure Equipment Total Other Capital Assets 66,823,452 38,120,412 159,922,505 51,902,978 316,769,347 11,904,603 1,961,041 18,161,817 2,887,997 34,915,458 72,000 224,712 2,097,232 2,393,944 78,728,055 40,009,453 177,859,610 52,693,743 349,290,861 Less Accumulated Depreciation for: Buildings Improvements Infrastructure Equipment Total Accumulated Depreciation 21,800,321 19,717,080 85,905,113 30,453,369 157,875,883 2,131,083 3,065,191 4,079,643 4,645,926 13,921,843 207,433 1,882,817 2,090,250 23,931,404 22,782,271 89,777,323 33,216,478 169,707,476 158,893,464 20,993,615 303,694 179,583,385 $ 291,803,498 $ 41,043,747 $ 25,180,556 $ 307,666,689 Capital Assets Not Being Depreciated: Land Construction in Progress Other Capital Assets, Net Total Capital Assets, Governmental Activities 42 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 Government activities capital assets net of accumulated depreciation at June 30, 2010, include: General Capital Assets, Net Internal Service Fund Capital Assets, Net Total $ 297,327,714 10,338,975 $ 307,666,689 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 $ 1,853,461 2,375,163 2,769,519 63,161 53,265 4,206,078 2,601,196 $ 13,921,843 Total Business-type activities: Balance June 30, 2009 Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated $ 10,074,897 255,039,834 265,114,731 Other Capital Assets: Buildings Improvements Equipment Increases $ 331,870 5,782,727 6,114,597 Decreases $ Balance June 30, 2010 71,621,171 71,621,171 $ 10,406,767 189,201,390 199,608,157 7,945,196 151,259,987 4,780,563 163,985,746 73,396,952 35,391 73,432,343 5,344 5,344 7,945,196 224,656,939 4,810,610 237,412,745 Less Accumulated Depreciation for: Buildings Improvements Equipment Total Accumulated Depreciation 4,805,501 83,351,178 3,320,160 91,476,839 192,425 6,018,889 243,021 6,454,335 4,676 4,676 4,997,926 89,370,067 3,558,505 97,926,498 Other Capital Assets, Net 72,508,907 66,978,008 668 139,486,247 $ 337,623,638 $ 73,092,605 $ 71,621,839 $ 339,094,404 Total Other Capital Assets Total Capital Assets, Business-type activities Depreciation was charged to programs as follows: Water Wastewater Golf courses Total $ 3,581,143 2,642,007 231,185 $ 6,454,335 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, 2010 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, 2010, active ASRS members and the City were required by statute to contribute at the actuarially determined rate of 9.4 percent (9.0 percent retirement and 0.40 percent long-term disability) of the members’ annual covered payroll. The City’s contributions to ASRS for the years ended June 30, 2010, 2009, and 2008 were $2,471,539, $2,684,557, and $2,619,640, 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 26.25 percent, respectively, of the members’ annual covered payroll. The City’s contributions to EORP for the years ended June 30, 2010, 2009 and 2008 were $61,854, $65,134, and $44,206, respectively, which were equal to the required contributions for the year. Agent plans - For the year ended June 30, 2010 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 19.60 percent for police and 26.05 percent for fire. Funded Status and Funding Progress – Funding progress of the two agent plans as of June 30, 2009, the most recent valuation, appears below. Unfunded Liability POLICE FIRE Actual Value of Actuarial Accrued Funding Liability Funded Annual Covered as Percentage of Plan Assets Liability (Excess) Ratio Payroll Payroll $ 41,337,090 $ 29,459,868 55,583,097 46,691,521 $ 14,246,007 17,231,653 44 74.4% $ 63.1% 9,873,498 6,144,945 144.3% 280.4% City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 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, 2009 (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 19.60% $2,020,501 $2,020,501 June 30, 2009 Projected unit credt 26.05% $1,735,338 $1,735,338 June 30, 2009 Projected unit credit 8.50% 5.5% - 8.5% 5.50% None Level Percentage Closed 20 years Smoothed market 8.50% 5.5% - 8.5% 5.50% None Level Percentage Closed 20 years Smoothed market Trend Information - Information for each of the agent plans as of the most recent actuarial valuations follows: Annual P ension Cos t POLICE FIRE 2007 2008 2009 2007 2008 2009 $ Percent Contributed 1,134,675 1,421,698 2,020,501 1,120,319 1,321,441 1,735,338 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, 2010: 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 Total Business-type Activity Long-Term Liabilities Balance July 1, 2009 Additions Retirements Balance June 30, 2010 Due Within One Year $ 136,850,000 $ 29,530,000 $ 35,425,000 $ 130,955,000 $ 5,290,000 4,380,000 805,000 3,575,000 840,000 3,460,000 220,000 3,240,000 230,000 (512,561) (467,588) (35,658) (944,491) 1,620,630 487,307 90,035 2,017,902 448,916 249,287 3,488,401 3,288,772 $ 149,086,841 $ $ 29,998,635 5,250,000 $ 123,090,000 (692,839) 4,237,227 76,473,462 $ 208,357,850 $ 45 $ 36,753,664 $ 142,331,812 $ 6,360,000 - $ 1,210,000 $ 4,040,000 $ 1,275,000 2,960,000 120,130,000 3,105,000 (66,772) (626,067) 184,227 4,053,000 4,041,778 72,431,684 4,182,243 - $ 8,329,233 $ 200,028,617 $ 8,562,243 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 On the Statement of Net Assets, the current portion of governmental activity long-term liabilities of $6,360,000 excludes the current portion of compensated absences of $2,009,231 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 New Debt Issue – On June 29, 2010, the Yuma Municipal Property Corporation issued $29,530,000 in bonds with an average interest rate of 4.23 percent for a advance and current refunding of $29,330,000 of outstanding 2001 Series MPC bonds with an average interest rate of 4.94 percent. The net proceeds of $30,017,307 paid closing costs and underwriter fees of $419,562 and current interest costs of $219,720, refunded $28,200,000 of the 2001 bonds, and deposited $1,178,025 in an irrevocable trust with an escrow agent to provide for the 2011 principal and interest payments of the 2001 bonds. As a result, the 2001 Series MPC bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net assets. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $19,719. This difference is reported in the accompanying financial statements as a reduction in interest expense. The City completed the advance refunding to reduce its total debt service payments over the next 15 years by $1.86 million and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1.36 million. The following is a description of bonded indebtedness at June 30, 2010. 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 46 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 and hotels. For each bond series, the corresponding pledged tax was: Issue 2003 – Series A 2003 – Series B 2003 – Series C 2007 – Series B 2007 – Series D 2010 – Series B Pledged Tax Excise and Public Safety Taxes Excise Taxes Excise and Special Sales Taxes Excise and Special Sales Taxes Excise and Special Sales Taxes Excise Taxes Project(s) funded Refunding 1995 issue Art Center/Fire Station construction Refunding 1995 issue Pool/water park/public safety facilities Streets projects Refunding 2001 issue 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. 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, 2010, the pledged revenues described above amounted to $64,081,420 for governmental activities and $39,592,710 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, 2010, debt service for governmental activities totaled $12,821,749 and for business-type activities $17,101,096, or 20% and 43% of pledged revenues, respectively. Summary of Bonded Debt Interest Rate General Obligation Bonds: 1997 Refunding Yuma Municipal Property Corporation Bonds: 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 2010 - Series B Refunding Total MPC Bonds Issue Date Maturity Date 4.90% 12/1/1997 2012 4.21% 3.67% 2.97% 4.18% 4.50% 4.50% 4.50% 4.23% 2/18/2003 2/18/2003 2/18/2003 2/18/2003 11/20/2007 11/20/2007 11/20/2007 6/29/2010 2015 2015 2010 2022 2027 2027 2032 2025 Total Bonds Authorized and Issued Authorized and Issued $ 8,085,000 Outstanding $ 4,040,000 14,640,000 2,905,000 1,445,000 9,000,000 30,785,000 61,100,000 127,925,000 29,530,000 277,330,000 8,320,000 1,600,000 225,000 6,780,000 28,310,000 56,190,000 120,130,000 29,530,000 251,085,000 $ 285,415,000 $ 255,125,000 Net Unamortized Premium/ (Issue Costs) $ (34,677) (53,866) (423,037) 1,530,595 3,461,610 4,515,302 $ 4,480,625 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 47 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 a City's net secondary assessed valuation. The legal borrowing capacity of the City of Yuma at June 30, 2010 follows: All Other (6%) Water, Etc. (20%) Secondary Assessed Valuation $747,149,498 Legal Limit Outstanding G.O. Debt $ 149,429,900 4,040,000 $ 44,828,970 - Available Debt Margin $ 145,389,900 $ 44,828,970 Annual Debt Service Requirements to Maturity BONDS AND IMPROVEMENT DISTRICTS 1997 Refunding Bonds July 1 2010 Principal $ 1,275,000 Interest $ 196,615 Improvement District No. 67 Bonds Total $ Principal 1,471,615 $ Interest 840,000 $ 132,276 Total $ 972,276 2011 1,345,000 134,140 1,479,140 875,000 101,196 976,196 2012 1,420,000 69,580 1,489,580 910,000 68,820 978,820 2013 - - 950,000 35,150 $ - 4,040,000 $ 400,335 $ 4,440,335 $ 3,575,000 $ 410,000 $ - $ - $ 337,442 985,150 $ 3,912,442 MPC Bonds 2003 Series MPC Bonds 2010 Refunding 2001B 2010 $ - $ 285,532 $ Improvement District No. 68 Bonds 695,532 $ 230,000 $ 152,280 $ 382,280 2011 1,300,000 1,227,865 2,527,865 420,000 272,207 692,207 245,000 141,470 386,470 2012 1,340,000 1,188,581 2,528,581 435,000 257,507 692,507 255,000 129,955 384,955 2013 1,375,000 1,155,082 2,530,082 450,000 241,847 691,847 265,000 117,970 382,970 2014 1,425,000 1,100,081 2,525,081 470,000 224,973 694,973 280,000 105,515 385,515 2015 1,465,000 1,057,332 2,522,332 490,000 207,347 697,347 290,000 92,355 382,355 2016 1,840,000 1,013,381 2,853,381 515,000 182,847 697,847 305,000 78,725 383,725 2017 1,910,000 939,782 2,849,782 535,000 157,098 692,098 320,000 64,390 384,390 2018 2,010,000 844,281 2,854,281 560,000 134,628 694,628 335,000 49,350 384,350 2019 2,110,000 743,781 2,853,781 585,000 110,828 695,828 350,000 33,605 383,605 2020 2,210,000 638,281 2,848,281 610,000 85,672 695,672 365,000 17,155 382,155 2021 2,305,000 549,881 2,854,881 635,000 58,833 693,833 - - - 2022 2,400,000 454,800 2,854,800 665,000 30,258 695,258 - - - 2023 2,500,000 352,800 2,852,800 - - - - - - 2024 2,610,000 240,300 2,850,300 - - - - - - 2025 2,730,000 122,850 2,852,850 - - - - - - $ 29,530,000 $ 11,629,078 $ 41,159,078 $ 1,210,000 $ 6,780,000 $ 245,000 MPC Bonds 2003 Refunding 1995A 2010 $ 365,453 $ 1,575,453 $ 2,249,577 $ 9,029,577 $ MPC Bonds 2003 Refunding 1995B $ 61,448 $ 306,448 3,240,000 $ 982,770 $ 4,222,770 MPC Bonds 2003 Refunding 1995C $ 225,000 $ 7,313 $ 232,313 2011 1,285,000 304,953 1,589,953 250,000 53,485 303,485 - - - 2012 1,350,000 240,703 1,590,703 260,000 44,735 304,735 - - - 2013 1,425,000 173,203 1,598,203 270,000 35,375 305,375 - - - 2014 1,490,000 119,765 1,609,765 280,000 25,250 305,250 - - - 2015 1,560,000 $ 8,320,000 62,400 $ 1,266,477 1,622,400 $ 9,586,477 295,000 $ 1,600,000 14,750 $ 48 235,043 309,750 $ 1,835,043 $ 225,000 $ 7,313 $ 232,313 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 BONDS AND IMPROVEMENT DISTRICTS July MPC Bonds 2007 Series B 1 2010 Interest Principal $ 2011 1,075,000 $ 1,125,000 1,221,970 MPC Bonds 2007 Series D Total $ 1,168,220 2,296,970 Principal $ 2,293,220 Interest 2,125,000 $ 2,230,000 2,638,525 MPC Bonds 2007 Series Utility Total $ 2,553,525 4,763,525 Principal $ 4,783,525 Interest 3,105,000 $ 3,260,000 5,806,738 Total $ 5,682,538 8,911,738 8,942,538 2012 1,175,000 1,111,970 2,286,970 2,330,000 2,442,025 4,772,025 3,425,000 5,519,538 8,944,538 2013 1,230,000 1,064,970 2,294,970 2,435,000 2,348,825 4,783,825 3,585,000 5,382,538 8,967,538 2014 1,280,000 1,015,770 2,295,770 2,540,000 2,251,425 4,791,425 3,750,000 5,239,138 8,989,138 2015 1,335,000 964,570 2,299,570 2,655,000 2,149,825 4,804,825 3,920,000 5,089,138 9,009,138 2016 1,390,000 911,170 2,301,170 2,760,000 2,043,625 4,803,625 4,095,000 4,893,138 8,988,138 2017 1,445,000 855,570 2,300,570 2,870,000 1,905,625 4,775,625 4,270,000 4,688,388 8,958,388 2018 1,505,000 797,770 2,302,770 2,985,000 1,762,125 4,747,125 4,440,000 4,453,538 8,893,538 2019 1,565,000 737,570 2,302,570 3,110,000 1,612,875 4,722,875 4,620,000 4,231,538 8,851,538 2020 1,630,000 674,970 2,304,970 3,240,000 1,457,375 4,697,375 4,810,000 4,000,538 8,810,538 2021 1,700,000 606,510 2,306,510 3,375,000 1,323,725 4,698,725 5,015,000 3,802,125 8,817,125 2022 1,770,000 534,260 2,304,260 3,520,000 1,154,975 4,674,975 5,225,000 3,551,375 8,776,375 2023 1,850,000 458,150 2,308,150 3,670,000 978,975 4,648,975 5,450,000 3,290,125 8,740,125 2024 1,930,000 365,650 2,295,650 3,825,000 795,475 4,620,475 5,685,000 3,017,625 8,702,625 2025 2,010,000 281,212 2,291,212 3,995,000 604,225 4,599,225 5,930,000 2,733,375 8,663,375 2026 2,100,000 193,275 2,293,275 4,170,000 404,475 4,574,475 6,190,000 2,436,875 8,626,875 2027 2,195,000 98,775 2,293,775 4,355,000 195,975 4,550,975 6,460,000 2,127,375 8,587,375 2028 - - - - - - 6,745,000 1,844,750 8,589,750 2029 - - - - - - 7,050,000 1,507,500 8,557,500 2030 - - - - - - 7,365,000 1,155,000 8,520,000 2031 - - - - - - 7,695,000 786,750 8,481,750 2032 - - - - - - 8,040,000 402,000 $ 28,310,000 $ 13,062,352 $ 41,372,352 $ 56,190,000 $ 28,623,600 $ 84,813,600 $ 120,130,000 $ 81,641,643 8,442,000 $ 201,771,643 CONTRACTS PAYABLE WIFA Loan #920069-03 July 1 2010 Interest Principal $ 2011 469,804 $ 485,359 247,696 WIFA Loan #910043-03 Total $ 232,141 717,500 Principal $ 717,500 2,150,222 Interest $ 2,221,416 1,133,668 WIFA Loan #920088-04 Total $ 1,062,474 3,283,890 Principal $ 3,283,890 1,562,205 Interest $ 1,122,979 1,620,809 1,063,265 Total $ 2,685,184 2,684,074 2012 501,429 216,071 717,500 2,294,967 988,923 3,283,890 1,681,632 1,001,311 2,682,943 2013 518,032 199,468 717,500 2,370,953 912,937 3,283,890 1,744,727 937,033 2,681,760 2014 535,184 182,316 717,500 2,449,455 834,435 3,283,890 1,810,189 870,342 2,680,532 2015 552,904 164,596 717,500 2,530,557 753,333 3,283,890 1,878,108 801,150 2,679,258 2016 571,210 146,290 717,500 2,614,343 669,547 3,283,890 1,948,574 729,361 2,677,936 2017 590,123 127,377 717,500 2,700,904 582,986 3,283,890 2,021,685 654,879 2,676,564 2018 609,662 107,838 717,500 2,790,331 493,559 3,283,890 2,097,539 577,603 2,675,141 2019 629,848 87,652 717,500 2,882,719 401,171 3,283,890 2,176,238 497,427 2,673,665 2020 650,702 66,798 717,500 2,978,166 305,724 3,283,890 2,257,891 414,242 2,672,133 2021 672,247 45,253 717,500 3,076,773 207,117 3,283,890 2,342,607 327,937 2,670,544 2022 694,505 22,995 717,500 3,178,645 105,245 3,283,890 2,430,501 238,393 2,668,895 2023 - - - - - - 2,521,694 145,490 2,667,184 2024 - - - - - - 2,616,825 49,092 2,665,916 $ 7,481,009 $ 1,846,492 $ 9,327,501 $ 34,239,451 $ 49 8,451,118 $ 42,690,569 $ 30,711,225 $ 9,430,503 $ 40,141,727 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 H. Interfund Transfers Transfers Out General Fund HURF Road Tax Capital Projects Public Safety Tax Solid Waste Two Percent Tax Debt Service Debt Service General Fund 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 $ 1,030,125 Mall Maintenance 90,804 Debt Service 2,756,032 Road Tax Debt Service 101,944 Debt Service Debt Service 4,792,802 General Fund 30,732 Road Tax 3,211 Debt Service 171,164 Debt Service Debt Service Debt Service Total Enterprise Funds Two Percent Tax $ Capital Projects Solid Waste Capital Projects General Fund HURF Road Tax Public Safety Tax Solid Waste Desert Hills G.C. Wastewater Water Capital Projects 586,726 30,732 4,800 3,211 2,756,032 101,944 4,792,802 3,146,301 21,089 232,571 32,961 62,683 171,164 General Fund Two Percent Tax General Fund 1,030,125 1,500,000 90,804 Total Governmental Activities 14,563,945 Nonmajor funds: Solid Waste 3,146,301 Recreation Complex 21,089 Mall Maintenance 4,800 1,500,000 586,726 232,571 14,468,301 Enterprise funds: Desert Hills G.C. 232,571 62,683 32,961 328,215 Two Percent Tax 232,571 Total Enterprise Funds 232,571 Total Transfers In $ 14,796,516 Total Transfers Out $ 14,796,516 The majority of the transfers listed above are for debt service requirements and are recognizable by the fund from 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 ($1,030,125) and Mall Maintenance ($90,804); and from the Two Percent Tax Fund to the General Fund ($586,726 per a riverfront development agreement), to the Recreation Complex Fund ($1,500,000) and Desert Hills Golf Course ($232,571). 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 $95,644 are for debt service. 50 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2010 I. Interfund Receivables and Payables Interfund balances at June 30, 2010, follow: Interfund Receivable Major Funds Major Governmental Funds: Community Redevelopment Fund Grants Fund Nonmajor Governmental Funds: Solid Waste Fund Internal Service Funds: Equipment Maintenance Workers Compensation Total Receivable Capital Projects General Interfund Payable $ $ 107,797 1,236,091 $ 175,699 Total $ 107,797 1,411,790 146,802 - 146,802 495,603 270,000 - 495,603 270,000 2,256,293 $ 175,699 $ 2,431,992 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, $360,474, 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 - $32,028,405 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 - $1,985,923 includes sales tax rebates of $1,485,654, 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, $87,633 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, 2010 Insurance Reserve Fund Beginning Claims and of Year Changes In Fiscal Year 2009-10 2008-09 2007-08 Liability $ Estimates 24,140 30,347 34,660 $ 456,306 109,096 22,527 Workers Compensation Fund End Beginning Claims and Claim of Year of Year Changes In Payments Liability Liability $ 432,388 $ 115,303 26,840 48,058 $ 24,140 30,347 851,083 635,985 818,060 End Claim of Year Estimates Payments Liability $ 1,006,908 1,032,587 4,433 $ 840,870 817,489 186,508 $ 1,017,121 851,083 635,985 L. Construction Commitments The City has active construction projects as of June 30, 2010. At year-end the government’s commitments with contractors for specific projects are as follows: Construction Commitments General Government Public Safety Parks & Recreation Environmental Health Streets Water System Wastewater Original Contract Spent to Date Remaining Commitment $ 1,553,279 2,745,387 437,225 189,012 9,843,737 4,318,174 722,198 $ 923,213 1,937,667 388,245 134,962 5,477,388 3,258,909 110,765 $ 630,066 807,720 48,980 54,050 4,366,349 1,059,265 611,433 $ 19,809,012 $ 12,231,149 $ 7,577,863 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, 2010. 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 2007 2008 2009 FIRE 2007 2008 2009 Actuarial Funding Actual Value Accrued Liability of Plan Assets Liability (Excess) $ 38,668,154 $ 40,781,540 41,337,090 26,853,367 27,991,354 29,459,868 Annual Liability as Funded Covered Percentage Ratio Payroll of Payroll 51,924,584 $ 54,019,158 55,583,097 13,256,430 13,237,618 14,246,007 74.5% $ 9,149,431 75.5% 9,619,242 74.4% 9,873,498 144.9% 137.6% 144.3% 43,029,776 43,200,182 46,691,521 16,176,409 15,208,828 17,231,653 62.4% 64.8% 63.1% 287.1% 250.1% 280.4% 54 5,634,967 6,081,510 6,144,945 City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2010 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 Positive (Negative) $ (363,171) Original $ 16,118,848 Final $ 16,118,848 Actual Amounts $ 15,755,677 9,386,857 100,000 19,050,000 242,000 3,110,000 31,888,857 9,386,857 100,000 19,050,000 242,000 3,110,000 31,888,857 9,023,484 233,149 17,461,635 242,000 3,009,794 29,970,062 (363,373) 133,149 (1,588,365) (100,206) (1,918,795) 330,000 36,200 758,500 9,000 1,133,700 330,000 36,200 758,500 9,000 1,133,700 315,580 34,130 1,051,237 11,784 1,412,731 (14,420) (2,070) 292,737 2,784 279,031 6,865,000 11,530,000 3,600,000 90,000 22,085,000 6,865,000 11,530,000 3,600,000 90,000 22,085,000 6,553,759 11,530,342 3,302,490 44,700 21,431,291 (311,241) 342 (297,510) (45,300) (653,709) 361,550 494,500 753,968 456,640 2,066,658 361,550 494,500 753,968 456,640 2,066,658 384,039 628,264 821,255 625,809 2,459,367 22,489 133,764 67,287 169,169 392,709 1,160,000 1,160,000 1,160,000 1,160,000 1,436,928 1,436,928 276,928 276,928 542,500 152,000 694,500 542,500 152,000 694,500 166,500 164,701 331,201 (376,000) 12,701 (363,299) 3,000 194,825 197,825 59,226,540 446,500 3,000 194,825 197,825 59,226,540 446,500 75,791,888 5,084 187,040 192,124 57,233,704 622,258 73,611,639 2,084 (7,785) (5,701) (1,992,836) 175,758 (2,180,249) 75,791,888 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, 2010 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 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 Total Public Safety Expenditures Final Actual Amounts Variance with Final Budget Positive (Negative) 309,121 150,000 1,022,865 771,954 114,606 851,275 2,196,479 302,740 1,343,763 224,181 272,218 770,052 445,542 3,200,822 449,520 659,559 (4,087,981) 8,996,716 1,114,778 272,622 150,000 983,397 771,954 114,606 851,275 2,196,479 302,740 1,343,763 224,181 272,218 770,052 445,542 3,180,822 449,520 699,027 (4,087,981) 8,940,217 1,134,778 249,953 201,040 972,304 636,012 106,271 747,767 1,907,599 294,035 19,567 974,305 220,875 264,488 735,126 336,286 2,899,594 390,116 541,484 (4,087,981) 7,408,841 138,082 22,669 (51,040) 11,093 135,942 8,335 103,508 288,880 8,705 (19,567) 369,458 3,306 7,730 34,926 109,256 281,228 59,404 157,543 1,531,376 996,696 10,111,494 10,074,995 7,546,923 2,528,072 18,016,914 2,503,013 2,122,135 41,419 494,126 459,740 9,068,256 827,445 56,024 151,540 (40,000) 1,581,559 35,282,171 34,556 17,997,356 2,498,013 2,122,135 41,419 494,486 459,740 9,068,256 827,085 56,024 151,540 (40,000) 1,581,559 35,257,613 59,114 15,382,017 2,343,952 1,862,839 21,498 495,029 423,495 9,051,833 755,861 34,935 101,620 14 1,464,014 31,937,107 4,468 2,615,339 154,061 259,296 19,921 (543) 36,245 16,423 71,224 21,089 49,920 (40,014) 117,545 3,320,506 54,646 35,316,727 35,316,727 31,941,575 3,375,152 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, 2010 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 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 Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Final Actual Amounts Variance with Final Budget Positive (Negative) 627,528 4,769,469 189,849 619,547 213,517 265,230 273,530 1,009,672 180,348 988,411 (190,813) 627,528 4,769,469 189,849 619,547 213,517 265,230 273,530 1,046,171 180,348 988,411 (190,813) 595,858 4,234,244 142,390 602,552 158,139 210,969 192,163 1,014,519 120,822 817,243 (190,813) 31,670 535,225 47,459 16,995 55,378 54,261 81,367 31,652 59,526 171,168 - 8,946,288 4,000 8,982,787 4,000 7,898,086 - 1,084,701 4,000 8,950,288 8,986,787 7,898,086 1,088,701 874,074 (838,823) 874,074 (838,823) 869,133 (838,823) 4,941 - 35,251 35,251 30,310 4,941 259,998 424,652 2,433,913 449,839 259,998 424,652 2,433,913 449,839 256,543 404,167 2,189,202 514,651 3,455 20,485 244,711 (64,812) 3,568,402 - 3,568,402 - 3,364,563 1,151 203,839 (1,151) 3,568,402 57,982,162 1,153,334 3,568,402 57,982,162 1,197,892 3,365,714 50,638,907 143,701 202,688 7,343,255 1,054,191 59,135,496 4,334,257 59,180,054 4,334,257 63,514,311 50,782,608 3,876,960 54,659,568 8,397,446 457,297 8,854,743 63,469,753 $ 12,322,135 $ 12,277,577 $ 18,952,071 $ 6,674,494 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, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental State Gasoline Tax Use of Money and Property Interest Miscellaneous Engeneering Oversight Fees Other Total Revenues Budget Original Final $ 926,471 $ 926,471 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Public Safety Traffic Signals, Signs, and Striping Streets Street Maintenance Street Lighting Street Sweeping Storm Drain Maintenance Curbs, Gutters, and Sidewalks Retention Basin Maintenance Environmental Health Lot Cleaning Capital Outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 7,130,840 7,130,840 6,626,027 (504,813) 30,000 30,000 6,677 (23,323) 30,000 10,000 7,200,840 8,127,311 30,000 10,000 7,200,840 8,127,311 554 178,619 6,811,877 8,040,750 (29,446) 168,619 (388,963) (86,561) 1,228,125 1,228,125 967,835 3,105,412 738,124 627,465 300,975 490,305 1,176,310 3,105,412 738,124 627,465 300,975 490,305 1,176,310 2,515,212 861,974 488,720 162,524 313,930 1,073,057 590,200 (123,850) 138,745 138,451 176,375 103,253 131,805 100,000 131,805 100,000 7,898,521 101,771 8,000,292 120,396 15,599 6,519,247 101,944 6,621,191 11,409 84,401 1,379,274 (173) 1,379,101 7,898,521 101,771 8,000,292 Total Expenditures Transfers Out $ Actual Amounts $ 1,228,873 Variance with Final Budget Positive (Negative) $ 302,402 127,019 See accompanying notes to this schedule 58 $ 127,019 $ 1,419,559 260,290 $ 1,292,540 City of Yuma, Arizona Budgetary Comparison Schedule City Road Tax Fund For the Year Ended June 30, 2010 Final 438,176 Actual Amounts $ 2,270,064 9,521,410 9,521,410 8,729,333 (792,077) 370,000 70,000 370,000 70,000 458,205 21,417 88,205 (48,583) 150,000 10,111,410 150,000 10,111,410 48,165 9,257,120 (101,835) (854,290) 10,549,586 10,549,586 3,211 11,530,395 3,211 980,809 1,443,680 102,300 1,597,473 82,195 5,000 1,443,680 102,300 1,535,895 82,195 5,000 1,120,834 128,142 1,479,908 50,697 - 322,846 (25,842) 55,987 31,498 5,000 2,098,250 100,000 5,428,898 4,763,525 10,192,423 2,096,328 162,500 5,427,898 4,763,525 10,191,423 1,539,892 138,949 4,458,422 4,792,802 9,251,224 556,436 23,551 969,476 (29,277) 940,199 358,163 $ 2,279,171 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes Special Road Sales Tax Use of Money and Property Rent Interest Miscellaneous Other Total Revenues Original $ 438,176 Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Streets Engineering Right-Of-Way Management Street Maintenance Pathways and Trails 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) $ 1,831,888 357,163 See accompanying notes to this schedule 59 $ $ $ 1,921,008 City of Yuma, Arizona Budgetary Comparison Schedule Grants Fund For the Year Ended June 30, 2010 Budget Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government State Government Budget Authority Reserve Use of Money and Property Interest Contributions/Donations Total Revenues Original $ - Amounts Available for Appropriation Charges to Appropriations (outflows): Current: General Government Public Safety Parks, Recreation and Culture Environmental Health and Protection Community Design & Development Capital Outlay 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) $ - 2,986,284 155,136 14,360,801 2,986,284 155,136 14,139,801 6,958,696 542,237 - 3,972,412 387,101 (14,139,801) 114,178 17,616,399 17,616,399 114,178 17,395,399 17,395,399 6,487 42,585 7,550,005 7,550,005 6,487 (71,593) (9,845,394) (9,845,394) 750,000 4,798,936 637,320 788,326 1,965 392,852 550,000 4,289,985 61,463 1,550,175 1,965 694,811 172,249 2,263,437 44,613 1,446,751 2,367,631 377,751 2,026,548 16,850 103,424 1,965 (1,672,820) 3,300,000 5,482,000 675,000 790,000 17,616,399 17,616,399 3,281,160 5,539,000 676,840 750,000 17,395,399 17,395,399 456,016 49,308 750,000 7,550,005 7,550,005 3,281,160 5,082,984 627,532 9,845,394 9,845,394 $ - See accompanying notes to this schedule 60 $ - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Community Redevelopment Fund For the Year Ended June 30, 2010 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 $ $ 1,663,730 Charges to Appropriations (outflows): Current: Community Design and Development Capital Outlay Capital Projects Streets Total Expenditures Total Charges to Appropriations $ - $ 1,884,730 - Total Revenues Amounts Available for Appropriation Budgetary Fund Balance, June 30 - Final - Variance with Final Budget Positive (Negative) $ 1,199,234 - - (685,496) 17,798 17,798 33,858 1,697,588 1,697,588 33,858 1,918,588 1,918,588 17,171 409 1,234,612 1,234,612 17,171 (33,449) (683,976) (683,976) 1,692,588 5,000 1,872,588 5,000 1,194,438 - 678,150 5,000 1,697,588 1,697,588 41,000 1,918,588 1,918,588 40,174 1,234,612 1,234,612 826 683,976 683,976 - See accompanying notes to this schedule 61 $ - $ - $ - City of Yuma, Arizona NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2010 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. Outside counsel and a large settlement claim caused expenditures within the Insurance Reserve fund to exceed appropriations by $267,953. 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, 2010 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 $ - $ 81,762 $ 388 388 $ 247,623 1,688 331,073 $ 107 $ 608 107 Fund Balances Reserved for: Inventory Prepaid Items Unreserved: Designated For Future Community Improvements Undesignated Total Fund Balance Total Liabilities and Fund Balance Special Revenue Public Safety Solid Tax Waste Local Transportation Assistance 5,277 5,885 - 281 281 $ 388 66 $ $ - Recreation Complex $ 1,686,962 292,207 17 $ 292,224 4,371 2,715 9,894 405 $ 1,704,347 $ $ 90,174 55,248 146,802 292,224 44,932 63,821 13,625 122,378 - - 9,894 405 325,188 325,188 - 1,571,670 1,581,969 331,073 $ 292,224 $ 1,704,347 Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 2,254,840 $ 4,030,738 $ 7,174 10,841 3,099 $ 2,268,780 $ 296 1,873 9,343 $ 307,715 249,513 7,890 9,894 405 4,606,155 $ $ 1,774 $ 151,047 13,452 13,452 7,569 9,343 - 50,000 2,205,328 2,255,328 $ 2,268,780 $ 131,915 146,802 13,625 443,389 - 9,894 405 - 50,000 4,102,467 4,162,766 9,343 $ 4,606,155 67 City of Yuma, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2010 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: General Government Public Safety Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Projects Streets Parks, Recreation and Culture Total Expenditures Revenues Over/(Under) Expenditures Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1 Fund Balances, June 30 $ Recreation Complex $ 3,490,546 $ $ 226,308 1,873,283 1,533 2,236 42,566 5,458 270,407 3,492,782 1,878,741 - 64,308 - - - 94,429 - 293,157 387,586 64,308 2,882,977 - 535,359 9,353 544,712 1,626,934 - 2,882,977 1,626,934 (117,179) 3,428,474 (1,004,236) (1,082,222) - (3,146,301) 1,030,125 (25,889) 1,500,000 - - (3,146,301) 1,004,236 1,500,000 (117,179) 282,173 - 417,778 117,460 43,015 - 1,164,191 - $ 1,581,969 281 68 $ 325,188 $ Special Revenue Yuma Two Percent Mall Tax Maintenance Total Nonmajor Governmental Funds $ 4,253,079 $ 13,835 8 4,266,922 117,798 8,358 126,156 $ 159,360 1,049,454 - 159,360 64,308 2,676,388 - - 2,882,977 - 216,960 311,389 544,853 1,753,667 216,960 293,157 544,853 6,932,432 2,513,255 (90,804) 3,647,288 (2,319,297) 90,804 - 2,620,929 (5,491,487) (2,319,297) 90,804 (2,870,558) 7,861,423 226,308 1,873,283 552,963 42,566 23,177 10,579,720 193,958 - 776,730 2,061,370 - 3,386,036 $ 2,255,328 $ - $ 4,162,766 69 City of Yuma, Arizona Budgetary Comparison Schedule Debt Service Fund For the Year Ended June 30, 2010 Budget Original Final $ 542,899 $ 542,899 Actual Amounts $ 542,899 1,025,000 817,600 (207,400) 330,038 1,355,038 12,400,166 14,298,103 29,530,000 487,307 302,420 31,137,327 11,317,547 42,997,773 29,530,000 487,307 (27,618) 29,782,289 (1,082,619) 28,699,670 7,395,000 6,339,954 13,734,954 13,734,954 7,395,000 6,339,954 13,734,954 13,734,954 6,315,000 6,334,783 10,200 419,563 13,079,546 29,378,025 42,457,571 1,080,000 5,171 (10,200) (419,563) 655,408 29,378,025 655,408 $ 563,149 $ $ 540,202 Budgetary Fund Balance, July 1 Resources (inflows): Special Assessments: Principal Payments 1,025,000 Use of Money and Property: Issuance of Long-Term Debt Premium on Issuance of Long-Term Debt 330,038 Interest Total Revenues 1,355,038 Transfers In 12,400,166 Amounts Available for Appropriation 14,298,103 Charges to Appropriations (outflows): Debt Service: Bond Principal Bond Interest Fiscal Agent Fees Issuance Costs Total Expenditures Payment to Refunded Bond Escrow Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Positive (Negative) $ - 70 563,149 $ (22,947) City of Yuma, Arizona Budgetary Comparison Schedule Capital Projects Fund For the Year Ended June 30, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Charges for Services Developer Charges Use of Money and Property 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) $ 48,958,408 $ 48,958,408 $ 47,349,127 $ (1,609,281) 5,788,638 5,788,638 2,673,873 (3,114,765) 495,000 13,011,250 19,294,888 68,253,296 495,000 13,011,250 19,294,888 68,253,296 55,171 302,770 3,031,814 50,380,941 (439,829) (12,708,480) (16,263,074) (17,872,355) 10,517,145 12,618,500 24,807,743 4,770,540 5,233,250 57,947,178 57,947,178 9,928,584 11,903,440 26,589,364 5,021,540 4,463,250 57,906,178 57,906,178 218,886 2,930,886 14,043,534 1,576,255 139,646 18,909,207 205,108 19,114,315 9,709,698 8,972,554 12,545,830 3,445,285 4,323,604 38,996,971 (205,108) 38,791,863 $ 10,306,118 $ 10,347,118 $ 31,266,626 $ 20,919,508 71 City of Yuma, Arizona Budgetary Comparison Schedule Local Transportation Assistance Special Revenue Fund For the Year Ended June 30, 2010 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 Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 20,000 $ 20,000 Actual Amounts $ 117,460 Variance with Final Budget Positive (Negative) $ 97,460 426,236 426,236 226,308 (199,928) 2,500 42,623 471,359 491,359 2,500 42,623 471,359 491,359 1,533 42,566 270,407 387,867 (967) (57) (200,952) (103,492) 94,429 94,429 94,429 - 376,930 471,359 471,359 376,930 471,359 471,359 293,157 387,586 387,586 83,773 83,773 83,773 $ 20,000 $ 20,000 72 $ 281 $ (19,719) City of Yuma, Arizona Budgetary Comparison Schedule Public Safety Tax Special Revenue Fund For the Year Ended June 30, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Public Safety Sales Tax Use of Money and Property Interest Total Revenues Amounts Available for Appropriation Budget Original Final $ 301,374 $ 301,374 Actual Amounts $ 43,015 Variance with Final Budget Positive (Negative) $ (258,359) 3,807,265 3,807,265 3,490,546 (316,719) 18,000 3,825,265 4,126,639 18,000 3,825,265 4,126,639 2,236 3,492,782 3,535,797 (15,764) (332,483) (590,842) 100,000 100,000 100,000 100,000 64,308 64,308 35,692 35,692 4,307,730 4,407,730 4,307,730 4,407,730 3,146,301 3,210,609 1,161,429 1,197,121 Charges to Appropriations (outflows): Current: Public Safety Police Support Services Capital Outlay Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ (281,091) $ (281,091) $ 73 325,188 $ 606,279 City of Yuma, Arizona Budgetary Comparison Schedule Solid Waste Special Revenue Fund For the Year Ended June 30, 2010 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 Final Original $ $ - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 1,807,600 1,807,600 1,873,283 65,683 5,000 1,812,600 1,312,172 3,124,772 5,000 1,812,600 1,312,172 3,124,772 5,458 1,878,741 1,030,125 2,908,866 458 66,141 (282,047) (215,906) 2,753,722 270,163 74,434 3,098,319 26,453 3,124,772 2,753,722 270,163 74,434 3,098,319 26,453 3,124,772 2,519,647 302,462 60,868 2,882,977 25,889 2,908,866 234,075 (32,299) 13,566 215,342 564 215,906 $ - $ 74 - $ - $ - City of Yuma, Arizona Budgetary Comparison Schedule Recreation Complex Special Revenue Fund For the Year Ended June 30, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Use of Money and Property Rents and Concessions Interest Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Civic and Convention Center Baseball Complex Capital Outlay Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 1,096,121 $ 1,096,121 Actual Amounts $ 1,164,191 Variance with Final Budget Positive (Negative) $ 68,070 544,100 45,000 544,100 45,000 524,198 11,161 (19,902) (33,839) 4,100 593,200 1,500,000 3,189,321 4,100 593,200 1,500,000 3,189,321 9,353 544,712 1,500,000 3,208,903 5,253 (48,488) 19,582 1,216,689 593,553 1,000 1,811,242 1,811,242 1,216,689 593,553 1,000 1,811,242 1,811,242 1,083,796 543,138 1,626,934 1,626,934 132,893 50,415 1,000 184,308 184,308 $ 1,378,079 $ 1,378,079 $ 1,581,969 75 $ 203,890 City of Yuma, Arizona Budgetary Comparison Schedule Two Percent Tax Special Revenue Fund For the Year Ended June 30, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Two PercentTax Use of Money and Property Interest Miscellaneous Other Total Revenues Budget Original Final $ 1,746,262 $ 1,746,262 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Administration Outside Agencies Parks Maintenance General Government Capital Projects: General Government Parks, Recreation and Culture Streets Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Actual Amounts $ 2,061,370 Variance with Final Budget Positive (Negative) $ 315,108 34,579 4,218,500 4,218,500 4,253,079 35,000 35,000 13,835 (21,165) 500 4,254,000 6,000,262 500 4,254,000 6,000,262 8 4,266,922 6,328,292 (492) 12,922 328,030 54,290 924,000 300,000 330,000 54,290 924,000 315,000 341,985 54,290 915,000 80,164 159,360 330,000 1,450,000 131,000 3,519,290 2,172,513 5,691,803 341,985 1,470,000 91,015 3,538,275 2,172,513 5,710,788 544,853 1,753,667 2,319,297 4,072,964 289,474 $ 2,255,328 308,459 76 $ 9,000 234,836 182,625 341,985 925,147 91,015 1,784,608 (146,784) 1,637,824 $ 1,965,854 City of Yuma, Arizona Budgetary Comparison Schedule Yuma Mall Maintenance Special Revenue Fund For the Year Ended June 30, 2010 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) $ - 110,000 110,000 117,798 7,798 10,000 120,000 135,036 255,036 10,000 120,000 135,036 255,036 8,358 126,156 90,804 216,960 (1,642) 6,156 (44,232) (38,076) 255,036 255,036 255,036 255,036 255,036 255,036 216,960 216,960 216,960 38,076 38,076 38,076 $ $ - 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, 2010 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 Desert Hills Golf Course Arroyo Dunes Golf Course $ $ 200,735 80 $ 399,617 2,167 414 81,625 2,200 287,141 302 1,418 200,602 2,167 414 302 83,043 2,200 487,743 3,102,865 2,370,096 307,034 645,571 21,866 3,102,865 3,015,667 328,900 5,779,995 (3,525,550) 667,437 (561,354) 6,447,432 (4,086,904) 2,254,445 2,254,445 2,541,586 106,083 106,083 306,685 2,360,528 2,360,528 2,848,271 27,293 110,331 51,620 3,601 14,325 - 30,894 124,656 51,620 189,244 17,926 207,170 189,244 17,926 207,170 2,254,445 97,897 106,083 182,676 2,360,528 280,573 $ 2,352,342 Total Net Assets 198,882 $ 288,759 $ 2,641,101 City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Proprietary Funds For the Year Ended June 30, 2010 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 974,505 338,811 228,108 519,883 2,061,307 $ 1,884,950 202,716 2,087,666 Operating Income/(Loss) Non-Operating Revenues/(Expenses): Interest Miscellaneous Revenues Net Non-Operating Revenues Income/(Loss) before Contributions and Transfers Transfers In Transfers Out Change in Net Assets $ Net Assets-ending 81 $ 267,672 28,469 296,141 1,214,326 349,059 229,379 519,883 2,312,647 2,152,622 231,185 2,383,807 (26,359) (44,801) (71,160) 5 2,823 2,828 1,252 53 1,305 1,257 2,876 4,133 (23,531) (43,496) (67,027) 232,571 (232,571) - 232,571 (232,571) (23,531) (43,496) (67,027) 332,255 2,375,873 Net Assets-beginning 239,821 10,248 1,271 251,340 2,352,342 $ 288,759 2,708,128 $ 2,641,101 City of Yuma, Arizona Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended June 30, 2010 Total Nonmajor Proprietary Funds Enterprise Funds Desert Hills Arroyo Dunes Golf Course Golf Course Cash Flow from Operating Activities: Cash Received from Customers Cash Paid to Employees Cash Paid to Suppliers Other Operating Activity Revenue Net Cash Provided by Operating Activities $ Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Cash Paid to Other Funds Net Cash Provided (Used for) Noncapital Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities 2,062,358 $ (861,589) (1,054,873) 2,828 148,724 232,571 (232,571) - 232,571 (232,571) - - - 17 17 Net Increase/(Decrease) in Cash and Cash Equivalents 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 82 1,580 1,580 1,597 1,597 148,741 (15,887) 132,854 51,994 214,769 266,763 $ $ 200,735 $ (26,359) $ 202,716 2,775 10,804 5,549 (15,415) (32,451) (1,723) 2,828 175,083 $ Net Cash Provided by Operating Activities 251,341 $ 2,313,699 (120,901) (982,490) (147,960) (1,202,833) 53 2,881 (17,467) 131,257 148,724 198,882 $ (44,801) $ 28,469 405 (1,568) (24) 52 27,334 $ (17,467) $ 399,617 (71,160) 231,185 2,775 11,209 5,549 (16,983) (32,475) (1,723) 2,880 202,417 131,257 City of Yuma, Arizona Budgetary Comparison Schedule Water Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2010 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) 20,774,750 $ 2,908,000 250,000 352,209 20,774,750 $ 19,239,865 $ 2,908,000 2,411,526 250,000 215,958 352,209 314,124 (1,534,885) (496,474) (34,042) (38,085) 175,000 2,500,000 1,047,500 45,100 28,052,559 28,052,559 175,000 2,500,000 1,047,500 45,100 28,052,559 28,052,559 90,448 1,420,381 137,667 97,996 23,927,965 23,927,965 (84,552) (1,079,619) (909,833) 52,896 (4,124,594) (4,124,594) 2,062,629 8,367,818 1,483,746 1,336,594 42,816 285,985 2,062,629 8,339,818 1,478,346 1,324,494 42,816 313,985 2,163,537 5,383,681 1,427,868 1,271,095 34,108 248,710 (100,908) 2,956,137 50,478 53,399 8,708 65,275 25,750 15,237,500 43,250 15,237,500 35,391 5,753,105 7,859 9,484,395 5,697,859 6,038,478 40,579,175 62,577 40,641,752 5,697,859 6,038,478 40,579,175 62,577 40,641,752 5,697,870 6,069,290 28,084,655 62,683 28,147,338 (11) (30,812) 12,494,520 (106) 12,494,414 (12,589,193) $ (12,589,193) 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 Depreciation and Amortization Change in Net Assets (4,219,373) $ 8,369,820 35,391 5,753,105 5,697,870 310,475 141,855 (60,659) (3,581,142) $ 4,077,522 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, 2010 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 $ Final Actual Amounts Variance with Final Budget Positive (Negative) 10,871,390 $ 980,000 1,251,282 23,000 10,871,390 $ 11,326,640 $ 980,000 859,212 1,251,282 1,513,296 23,000 28,628 3,000,000 200,000 291,000 39,378 16,656,050 16,656,050 3,000,000 200,000 291,000 39,378 16,656,050 16,656,050 1,692,972 117,351 15,500 78,900 32,246 15,664,745 15,664,745 (1,307,028) (82,649) 15,500 (212,100) (7,132) (991,305) (991,305) 1,336,481 6,310,131 453,182 1,012,811 272,095 1,336,481 6,280,131 440,382 1,012,811 314,895 1,350,918 5,668,898 353,877 919,098 182,019 (14,437) 611,233 86,505 93,713 132,876 6,000 4,966,600 6,000 4,966,600 1,505,210 6,000 3,461,390 2,864,372 2,469,218 19,690,890 24,148 19,715,038 2,864,372 2,469,218 19,690,890 24,148 19,715,038 2,864,372 2,469,564 15,313,956 32,961 15,346,917 (346) 4,376,934 (8,813) 4,368,121 (3,058,988) $ (3,058,988) Reconciliation to Change in Net Assets: Capital Projects Principal Retirement Amortization of Debt Issuance Costs Capital Contributions for Subdivider Additions to System Depreciation and Amortization Change in Net Assets 317,828 $ 455,250 (120,788) 262,014 5,628 3,376,816 1,505,210 2,864,372 36,259 321,588 (2,642,007) $ 2,402,582 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, 2010 Actual Amounts Budget Resources (inflows): Green Fees Cart and Club Rental Pro Shop Sales Restaurant Sales Interest Miscellaneous Total Revenues Transfers In Amounts Available for Appropriation Original Final $ 1,034,943 361,055 265,875 648,720 2,310,593 232,313 2,542,906 $ 1,034,943 361,055 265,875 648,720 2,310,593 232,313 2,542,906 1,102,209 493,099 658,422 2,253,730 232,313 1,102,209 493,099 658,422 2,253,730 232,313 874,779 468,181 541,990 1,884,950 232,571 227,430 24,918 116,432 368,780 (258) 2,486,043 2,486,043 2,117,521 368,522 56,863 179,185 Charges to Appropriations (outflows): Current: Maintenance Concession Restaurant Total Expenditures Transfers Out Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations Variance with Final Budget Positive (Negative) $ 56,863 $ $ Reconciliation to Change in Net Assets: Depreciation and Amortization 974,505 338,811 228,108 519,883 5 2,823 2,064,135 232,571 2,296,706 $ $ (60,438) (22,244) (37,767) (128,837) 5 2,823 (246,458) 258 (246,200) 122,322 (202,716) $ Change in Net Assets (23,531) 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, 2010 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 277,658 15,083 1,612 3,000 297,353 297,353 $ 240,719 45,926 286,645 286,645 $ 10,708 277,658 15,083 1,612 3,000 297,353 297,353 $ 240,719 45,926 286,645 286,645 $ 239,821 10,248 1,271 1,252 53 252,645 252,645 Variance with Final Budget Positive (Negative) $ 231,631 36,041 267,672 267,672 (15,027) $ 10,708 Reconciliation to Change in Net Assets: Depreciation and Amortization (37,837) (4,835) (341) (1,748) 53 (44,708) (44,708) 9,088 9,885 18,973 18,973 (25,735) (28,469) $ Change in Net Assets (43,496) 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, 2010 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 $ 16,328,243 24,055 16,352,298 $ 27,825,024 (17,989,112) 9,835,912 26,188,210 527,644 33,350 19 616 499,085 225 1,060,939 219,610 19,251 189,631 205,484 (130,913) 503,063 1,564,002 Insurance Reserve Employee Benefits Trust $ 1,396,305 39,354 2,704 2,739 1,441,102 $ 420,360 760 421,120 1,441,102 421,120 23,374 31,524 449,498 163 23,374 140,030 495,603 667,157 48,058 497,556 163 9,835,912 16,328,924 $ 26,164,836 503,063 393,782 896,845 943,546 $ 943,546 420,957 $ 420,957 $ 88 Workers Compensation $ 1,104,908 3,050 82 1,108,040 1,108,040 1,017,121 270,000 1,287,121 $ Totals $ 19,777,460 75,754 19 28,217 499,085 2,964 20,383,499 219,610 19,251 189,631 28,030,508 (18,120,025) 10,338,975 30,722,474 504,559 140,030 1,065,179 765,603 2,475,371 10,338,975 (179,081) 17,908,128 (179,081) $ 28,247,103 City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds For the Year Ended June 30, 2010 Equipment Replacement Operating Revenues: Charges For Services Contributions City Property Damage Restitution 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 $ Equipment Maintenance Insurance Reserve - $ 3,577,101 $ 630,521 10,187 10,187 7,270 3,584,371 4,029 30,844 665,394 18,594 2,577,400 2,595,994 (2,585,807) 79,628 43,321 122,949 3,264,980 23,798 3,288,778 295,593 Employee Benefits Trust $ 432,388 498,203 1,034,478 1,965,069 (1,299,675) - 7,963 7,963 - Workers Compensation $ - Totals $ 4,207,622 1,175 1,175 788,419 20,398 808,817 788,419 4,029 69,874 5,069,944 57,920 9,433 67,353 (66,178) 840,870 153,348 32,791 1,027,009 (218,192) 1,273,258 709,471 4,360,276 2,601,198 8,944,203 (3,874,259) 2,842 2,842 2,605 2,605 93,038 43,321 136,359 (2,462,858) 295,593 (1,291,712) (63,336) (215,587) (3,737,900) 28,627,694 601,252 2,235,258 484,293 36,506 31,985,003 $ 26,164,836 $ 896,845 89 $ 943,546 $ 420,957 $ (179,081) $ 28,247,103 City of Yuma, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2010 Equipment Replacement Cash Flows from Operating Activities: Cash Received from Customers Cash Paid to Employees Cash Paid to Suppliers Cash Paid For Operating Expenses Net Cash Flows Provided by/(Used for) Operating Activities $ Cash Flows from Investing Activities Receipt of Interest Net Cash Flows Provided by Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Insurance Reserve Employee Benefits Trust Workers Compensation $ 3,583,720 $ 665,046 $ 1,175 $ (1,109,242) (800,595) (67,369) (8,406) (1,313,404) (1,591,596) (8,406) 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 Totals 812,214 $ 5,062,155 (1,109,242) (867,964) (860,993) (3,774,399) 360,479 (926,550) (66,194) (48,779) (689,450) 207,205 (276,506) - - - - 207,205 (276,506) (69,301) - - - - (69,301) 112,452 112,452 360,479 12,598 12,598 (913,952) 3,718 3,718 (62,476) 5,572 5,572 (43,207) 134,340 134,340 (624,411) 34,745 16,293,498 167,165 2,310,257 482,836 $ 16,328,243 $ 527,644 $ 1,396,305 $ 420,360 $ (2,585,806) $ 295,593 $ (1,299,675) $ (66,178) $ Cash and Cash Equivalents, July 1, 2009 Cash and Cash Equivalents, June 30, 2010 Equipment Maintenance $ 1,148,115 20,401,871 1,104,908 $ 19,777,460 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 $ 2,577,400 - 23,798 (651) 45,792 (5) 16,509 (20,557) (347) (632) 350,186 - (16) - 2,577,400 64,886 23,918 373,125 (16) (8,406) $ 90 360,479 $ (926,550) $ (66,194) $ (218,192) $ (3,874,258) 3,397 (22) 166,038 169,413 (48,779) $ 2,601,198 2,399 45,792 (637) 366,657 (20,557) 189,956 3,184,808 (689,450) City of Yuma, Arizona Budgetary Comparison Schedule Equipment Replacement Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2010 Actual Amounts Budget Original Resources (inflows): Interest Miscellaneous 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 $ 350,000 350,000 Final $ 350,000 18,594 1,570,000 1,588,594 350,000 350,000 350,000 18,594 1,570,000 1,588,594 1,588,594 1,588,594 $ (1,238,594) $ (1,238,594) Reconciliation to Change in Net Assets: Capital Outlay Gain on Sale of Assets Depreciation and Amortization Change in Net Assets $ 79,628 10,187 89,815 89,815 Variance with Final Budget Positive (Negative) $ 18,594 289,066 307,660 307,660 (217,845) $ (270,372) 10,187 (260,185) (260,185) 1,280,934 1,280,934 1,280,934 1,020,749 289,066 43,321 (2,577,400) $ (2,462,858) 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, 2010 Actual Amounts Budget Original Resources (inflows): Charges for Services Miscellaneous Total Revenues $ $ 3,785,880 Amounts Available for Appropriation Charges to Appropriations (outflows): Current Administration 3,741,181 3,741,181 900 Total Expenditures Transfers Out Total Charges to Appropriations Excess of Resources Over Charges to Appropriations 3,785,880 3,785,880 Final 3,742,081 $ 43,799 Reconciliation to Change in Net Assets: Depreciation and Amortization Change in Net Assets $ 3,785,880 3,785,880 3,785,880 $ 3,577,101 7,270 3,584,371 3,584,371 3,741,181 3,741,181 900 3,742,081 3,264,980 3,264,980 3,264,980 43,799 319,391 $ Variance with Final Budget Positive (Negative) $ (208,779) 7,270 (201,509) (201,509) 476,201 476,201 900 477,101 $ 275,592 (23,798) 295,593 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, 2010 Actual Amounts Budget Original Resources (inflows): Charges for Services Property Damage Restitution Miscellaneous Interest Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current Premiums to Insurance Carriers Claims Incurred Administration Total Expenditures Transfers Out Total Charges to Appropriations Excess of Resources Over Charges to Appropriations $ Final 630,519 630,519 630,519 585,116 178,000 934,000 1,697,116 1,697,116 $ 630,519 630,519 630,519 585,116 178,000 934,000 1,697,116 1,697,116 $ 630,521 4,029 30,844 7,963 673,357 673,357 Variance with Final Budget Positive (Negative) $ 498,203 432,388 1,034,478 1,965,069 1,965,069 $ (1,066,597) $ (1,066,597) $ (1,291,712) $ Reconciliation to Change in Net Assets: Change in Net Assets 2 4,029 30,844 7,963 42,838 42,838 86,913 (254,388) (100,478) (267,953) (267,953) (225,115) $ (1,291,712) 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 Nine Fiscal Years (amounts expressed in thousands) 98 2002 2003 2004 2005 Fiscal Year 2006 2007 2008 2009 2010 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activites net assets $ 69,300 1,484 44,208 $ 114,993 $ 81,689 50,234 $ 131,922 $ 95,005 55,748 $ 150,752 $ 111,268 330 57,707 $ 169,305 $ 130,176 24,820 42,605 $ 197,601 $ 160,214 12,991 43,638 $ 216,844 $ 169,403 17,952 45,354 $ 232,709 $ 129,228 70,389 38,439 $ 238,056 $ 192,145 14,762 40,261 $ 247,168 Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activites net assets $ 80,224 23,251 $ 103,475 $ 85,380 22,511 $ 107,891 $ 86,266 31,537 $ 117,803 $ 105,944 27,122 $ 133,067 $ 119,734 26,569 $ 146,303 $ 154,054 7,587 $ 161,641 $ 151,032 151 24,079 $ 175,262 $ 158,367 1,952 27,344 $ 187,663 $ 160,883 3,754 29,027 $ 193,664 Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets $ 149,524 1,484 67,460 $ 218,468 $ 167,069 72,744 $ 239,813 $ 181,271 87,284 $ 268,555 $ 217,212 330 84,829 $ 302,372 $ 249,910 24,820 69,174 $ 343,904 $ 314,268 12,991 51,225 $ 378,485 $ 320,435 18,103 69,433 $ 407,971 $ 287,595 72,341 65,783 $ 425,719 $ 353,028 18,516 69,288 $ 440,832 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. City of Yuma, Arizona Changes in Net Assets Last Nine 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 $ $ $ $ $ $ $ 84,411 $ 91,536 $ 105,572 $ 116,383 $ 133,971 $ 139,366 $ 130,242 $ 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 $ 384 821 7,491 2,674 3,659 5,944 20,973 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 $ $ $ $ $ $ 21,027 13,126 2,140 1,181 8,874 46,348 70,690 20,754 13,859 2,819 37,432 10,563 39,224 13,969 13,863 4,905 4,981 6,291 93,796 $ 81,267 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 2010 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 $ 20,277 13,673 2,496 36,446 22,463 21,651 13,372 13,699 2,027 1,964 1,098 1,041 9,924 3,969 48,884 42,324 69,247 $ 63,297 Continued on next page City of Yuma, Arizona Changes in Net Assets Last Nine 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 $ 2010 (81,571) $ 11,452 (70,119) $ 8,856 36,857 3,013 31,330 3,895 $ (72,823) 5,878 (66,945) 9,498 34,177 3,010 28,239 5,776 292 920 (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 1,139 95 81,934 999 575 (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 $ 217 (95) 122 82,056 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 $ 9,112 6,000 $ 15,112 Concluded City of Yuma, Arizona Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2002 2001 2003 Fiscal Year 2005 2004 2006 2007 2008 2009 2010 General Fund Reserved Unreserved $ 490 11,073 $ 539 13,012 $ 489 15,087 $ 101 17,436 $ Total General Fund $ 11,563 $ 13,551 $ 15,576 $ 17,537 $ 20,000 $ 21,739 $ 20,202 $ 18,885 $ 15,756 $ 18,952 $ 3,173 $ 1,567 $ 85 $ 63 $ $ $ $ $ $ 101 All other governmental funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds 10,704 25,450 $ 39,327 9,424 3,355 $ 14,346 10,495 5,967 $ 16,548 $ 296 19,704 339 $ 614 21,125 535 $ 309 19,893 513 $ 277 18,608 543 $ 262 15,493 552 $ 156 18,796 553 13,407 6,920 17,036 1,104 19,908 5,976 12,892 926 8,791 67,732 6,876 47,349 7,848 31,267 20,391 $ 18,479 $ 26,418 $ 14,331 $ 77,066 $ 54,777 $ 39,668 City of Yuma, Arizona Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2002 2003 2004 2005 2006 2001 2007 2008 2009 2010 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 $ 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 $ 46,561 1,413 36,984 7,007 1,437 817 1,752 85 763 96,819 $ $ $ $ $ 5,033 29,296 4,899 8,534 3,014 5,344 21,151 $ 7,185 31,863 5,626 9,727 3,365 6,422 22,688 $ 7,641 35,014 7,155 11,022 3,551 6,698 41,450 $ $ $ 3,447 3,032 83,750 4,209 2,890 93,975 3,837 2,939 119,306 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 3,498 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 5,409 25,752 4,767 7,828 3,062 5,429 19,656 5,248 2,872 78,402 3,825 2,962 78,689 (8,651) $ (1,922) $ 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 7,740 35,233 8,195 10,619 4,480 4,870 25,249 6,315 6,764 109,465 $ (13,261) $ (32,364) $ (25,514) $ (12,646) Other financing sources (uses) Proceeds from long-term debt Sale of real property Payment to Refunded Bond Escrow Transfers in Transfers out Total other financing sources (uses) $ 34,209 $ 909 $ 31,490 $ 7,280 $ $ 3,875 $ $ 93,686 $ $ 30,017 281 455 (19,199) 920 307 742 (29,378) 23,490 21,423 21,117 21,609 20,219 25,016 38,410 29,685 16,213 14,564 (23,198) (21,501) (20,530) (22,082) (23,398) (25,021) (38,773) (29,589) (16,118) (14,468) 34,783 1,285 12,878 7,727 (2,872) 4,612 (363) 93,782 95 735 Net change in fund balances $ 26,941 Debt service as a percentage of noncapital expenditures 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% $ (11,912) 15.7% City of Yuma, Arizona Governmental Funds Tax Revenues by Source Last Ten Fiscal Years City Road Sales Tax Public Safety Two Percent Sales Tax Tax Utility Franchise Public Enterprise In-Lieu Mall District Levy Total 103 Fiscal Year General Sales Tax Property Tax 2001 $ 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 2010 9,256,633 17,461,635 8,729,333 3,490,546 4,253,079 3,009,794 242,000 117,798 46,560,818 City of Yuma, Arizona Governmental Funds Intergovernmental Shared Revenues Last Ten Fiscal Years Local Transportion Assistance Grants and Others* Total $ 425,571 $ 2,686,448 $ 24,587,495 104 Fiscal Year Sales Tax Revenue Sharing 2001 $ 5,779,653 $ 7,303,100 $ 2,235,482 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 2010 6,553,759 11,530,342 3,302,490 6,626,027 226,308 8,744,867 36,983,793 Auto In-Lieu Highway Users $ 6,157,241 *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 2001 $ 970,255 $ 158,271 2002 1,010,764 2003 State of Arizona Housing/Urban Development (CDBG) Other HUD $ Other 706,783 $ 199,998 $ 156,327 405,198 640,280 229,712 1,309,351 1,398,560 991,044 2004 3,462,972 575,124 2005 1,233,650 2006 Parks $ Commerce Transportation $ Other - $ 90,937 Local Government 105 393,823 $ 10,054 507,488 753,502 264,684 240,890 366,161 22,264 4,440,943 169,579 413,527 96,498 441,101 - 233,831 19,432 5,072,923 1,349,178 405,814 896,311 87,359 - 151,489 60,457 7,019,763 465,209 594,924 80,301 2,485,908 79,123 - 925,898 1,404,369 1,044,705 251,898 3,264,509 120,555 2007 524,591 417,782 1,334,775 - 4,090,532 2008 1,001,408 621,480 899,272 - 2009 583,702 1,469,327 1,121,334 2010 252,169 1,446,751 1,167,310 31,059 $ - Total - 291,084 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 - 5,336,400 1,840 - 533,859 5,607 - $ 2,686,448 931 5,230,199 8,744,867 City of Yuma, Arizona Taxable Sales by Category Last Ten Fiscal Years (amounts expressed in thousands) 2002 2001 Mining Construction $ 25 $ - 2003 $ Fiscal Years 2005 2006 2004 3 $ - $ 1 $ 2007 3 $ 2008 25 $ 155 2009 $ 2010 6 $ 82 107,204 123,550 132,387 166,117 228,801 235,643 254,740 249,315 207,592 118,996 40,897 26,315 23,128 28,969 53,176 60,054 57,632 59,931 48,964 44,764 158,945 142,496 126,623 121,936 145,454 173,224 186,420 207,693 206,089 207,112 25,543 26,615 27,587 23,625 29,635 35,498 34,732 22,480 33,785 35,334 701,473 730,255 760,867 823,785 925,936 1,024,886 1,088,053 1,089,001 1,001,579 962,699 Restaurants and Bars 93,828 99,965 103,690 110,633 123,683 143,594 157,866 162,560 162,404 157,024 Finance, Insurance and Real Estate 88,464 42,494 42,376 69,235 97,875 117,161 143,725 132,593 115,857 116,046 Hotels and Other Lodging 26,911 25,328 26,789 30,785 34,930 37,333 39,360 33,642 36,093 29,502 Services 33,342 78,342 79,392 66,721 44,921 48,639 58,050 52,012 50,858 43,356 6,919 1,216 717 43,029 31,963 32,542 46,423 38,503 32,743 31,055 $ 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 $ 1,745,971 Manufacturing Transportation, Communications, and Utilities Wholesale Trade Retail Trade 106 Arts, Entertainment, Government and All Others Not Specified City direct sales tax rate 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% Source: Arizona Department of Revenue Note: During fiscal 2004, the Department of Revenue implemented a new collection system with a revised reporting scheme. Accordingly, certain classifications have been combined for comparison purposes. 1.70% 1.70% 1.70% City of Yuma, Arizona Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Fiscal Year City Sales Tax Rate City Hospitality Sales Tax Rate Yuma County Arizona State 107 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% 2010 1.70% 2.00% 1.10% 6.60% Source: Arizona Department of Revenue City of Yuma, Arizona Ratio of Outstanding Debt by Type Last Nine Fiscal Years Fiscal Year General Obligation Bonds 2002 $ Governmental Activities Municipal Property Special Corporation Assessment Bonds Bonds 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% 3,320,000 - 11,385,000 10,408,191 91,353,191 2.80% 535 Long-term Contracts Payable 108 - $ 62,315,000 2003 - 66,240,000 2004 - 63,440,000 7,280,000 2,515,000 - 10,505,000 33,790,746 117,530,746 3.30% 667 2005 - 60,420,000 7,280,000 1,723,000 - 9,575,000 61,072,113 140,070,113 3.67% 773 2006 - 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 7.22% 1,808 2010 - 130,955,000 6,815,000 - 120,130,000 4,040,000 72,431,684 334,371,684 NA $ - $ 573,334 Per Capita* $ $ - 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 2001 77,515 2002 Assessed Value $ General Bonded Debt Ratio of General Bonded Debt to Assessed Value General Bonded Debt per Capita 109 256,612,102 - - - 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 - - - 2010 94,361 747,149,498 - - - 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, 2010 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 (Computation reflects 2009 outstanding debt as 2010 debt amounts were not available) Note: School district valuation applicable percentage estimated $ 115,180,739 City of Yuma, Arizona Legal Debt Margin Information June 30, 2010 (amounts expressed in thousands) 2001 Debt Limit Water, Sewer, Lights, Parks (20%) $ 51,322 All Others (6%) 15,397 2002 2003 Fiscal Year 2005 2006 2004 2007 2008 2009 2010 $ 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 $ 149,430 44,829 12,995 - 12,210 - 11,385 - 10,505 - 9,575 - 8,585 - 7,535 - 6,420 - 5,250 - 4,040 - Legal debt margin Water, Sewer, Lights, Parks (20%) $ 39,112 All Others (6%) 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 $ 145,390 44,829 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%) 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% 2.70% 0.00% Legal Debt Margin Calculation for Fiscal Year 2010 General Obligation Bonds 2009 Tax Year Secondary Assessed Valuation Outstanding General Obligation Debt: Project 1997 Total General Obligation Debt $ 747,149 Water, Sewer, Lights, Parks (20%) All Others (6%) $ 149,430 $ - 4,040 4,040 $ 145,390 $ (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. 44,829 44,829 City of Yuma, Arizona Schedule of Municipal Property Corporation Debt Service Requirements to Maturity and Coverage Series 2007, 2003 Refunding 1995, and 2010 Refunding 2001 Covenants 2003 Ref 2003 Ref 2010 Ref 2007 2007 1995A 1995B 2001 Series B Series D 2009-10 Pledged Taxes 2009-10 Net Revenue Total Taxes/Net Revenue 112 2010-11 Debt related to pledge: 2003 Ref 1995 Series A 2003 Ref 1995 Series B 2003 Series 2007 Series B 2007 Series D 2010 Series WIFA Loans (Parity Obligations) 2007 Series Utilities Total Debt Coverage Required Coverage Collective Coverage Total 2009-10 Taxes/Net Revenue Total 2010-11 Debt Coverage Required Coverage $ 51,099,008 51,099,008 $ 47,608,462 47,608,462 $ 47,608,462 47,608,462 $ 47,608,462 47,608,462 $ 56,337,795 56,337,795 $ $ $ 2,527,865 2,527,865 18.8 3.0 $ 2,293,220 2,293,220 20.8 3.0 $ 4,783,525 4,783,525 11.8 1.5 $ 47,608,462 $ 12,190,255 3.9 3.5 $ $ 47,608,462 12,190,255 3.9 3.0 $ $ $ 1,589,953 1,589,953 32.1 4.0 $ 51,099,008 $ 12,190,255 4.2 4.0 $ 303,485 692,207 995,692 47.8 3.0 $ 47,608,462 $ 12,190,255 3.9 3.0 $ $ $ 56,337,795 12,190,255 4.6 1.5 2007 Series Utilities Total $ 1,589,953 303,485 692,207 2,293,220 4,783,525 2,527,865 $ 12,190,255 $ 20,588,901 20,588,901 $ 6,685,474 8,942,538 15,628,012 1.3 1.2 $ $ $ 20,588,901 15,628,012 1.3 1.2 2003, 2007B, 2007D and 2003 Refunding 1995 Series, 2010 Refunding 2001 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 2001 113 Local Taxes $ 12,836,934 Sales Tax (1%) Franchise Fee 2,377,544 Intergovernmental Revenues: State Revenue Sharing 7,303,100 State Sales Tax 5,779,653 Auto In-Lieu Tax 2,235,482 Emergency Services and Other 19,675 Licenses: Business Licenses 262,991 Liquor Licenses 27,990 Fees for Services: Building Permits and Inspection Fees 1,543,648 Recreation Fees 332,466 Police Services and Other Public Safety Fees 495,782 Use of Money and Property: Investment Income 457,415 Fines, Forfeitures and Penalties: City Court Fines 587,620 34,260,300 Total Series B Pledged Taxes Additional Series A Pledged Taxes City Public Safety Taxes (.2%) 2,566,078 36,826,378 Total Series A Pledged Taxes Additional Series C Pledged Taxes City Special Taxes (2%) 2,490,071 Fiscal Year 2005 2006 2002 2003 2004 2007 2008 2009 2010 $ 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 $ 17,461,635 3,251,794 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 11,530,342 6,553,759 3,302,490 44,700 210,565 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 35,715 315,580 34,130 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 1,435,276 628,264 1,447,064 461,606 243,955 70,322 318,886 556,095 1,038,848 1,021,862 504,146 166,500 670,837 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 1,436,928 47,608,462 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 3,490,546 51,099,008 2,652,152 2,741,989 3,044,645 3,374,350 3,866,902 4,232,008 4,424,358 4,383,419 4,253,079 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 51,861,541 Additional Series D Pledged Taxes City Road Tax (.5%) 6,417,376 Total Series D Pledged Taxes $ 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 8,729,333 $ 56,337,795 Gross Excise Tax Pledged Revenues $ 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 $ 64,081,420 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 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 2009 193,299 4,840,484 25 21.30% 510 17,348,000 748 48,260,000 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 2009. Data for 2010 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 Six 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 United States Border Patrol City of Yuma Salyer American Fresh Yuma Union High School District Total 2009 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 2009 which is the most recent data available. United States Border Patrol data not available for 2004. Employees Rank 5,586 1 3,000 2 2,037 3 1,700 4 1,400 5 1,200 6 1,064 7 1,013 8 1,000 9 950 10 Percentage of Total Employment 9.51% 5.11% 3.47% 2.89% 2.38% 2.04% 1.81% 1.72% 1.70% 1.62% 32.27% City of Yuma, Arizona Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2005 2006 2001 2002 2003 2004 179 182 188 195 195 206 113 212 113 228 103 229 105 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 2007 2008 2009 2010 208 226 228 241 235 237 105 252 110 267 122 269 122 266 122 267 133 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 41 56 17 133 80 51 1,013 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 2001 2002 2003 2004 Fiscal Year 2005 2006 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 84,332 13,740 NA NA 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 11,045 2,322 NA NA 22 22 23 19 24 19 9 22 11 2 26,000 29,358 33,993 27,781 33,003 33,965 34,938 34,919 33,996 33,288 4,586 4,482 5,308 5,519 3,285 3,122 3,247 3,160 2,673 2,519 22,727 41.0 7.9 22,129 41.0 8.0 22,723 41.0 9.3 23,622 45.0 9.3 24,831 45.0 9.1 25,971 48.0 9.3 26,686 48.0 9.5 27,174 48.0 9.5 27,622 60.0 8.2 28,058 64.0 7.5 12.0 12.2 12.2 12.3 15.6 15.6 15.6 15.6 15.6 15.6 2007 2008 2009 2010 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 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 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) 1 118 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 1 164 6 300 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 42 389 5,606 49 10 10 10 10 10 12 13 13 13 13 553 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 9 607 79* 4 9 9 380 2,200 416 2,300 427 2,400 437 2,600 448 2,850 470 3,000 493 3,150 501 3,267 501 3,400 507 3,438 249 255 261 266 275 290 310 320 320 342 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.