City of Yuma, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013 City of Yuma Arizona Comprehensive Annual Financial Report CITY COUNCIL Alan L. Krieger, Mayor Leslie L. McClendon, Deputy Mayor Cody Beeson Paul B. Johnson Bobbi Lewis Jerry Stuart Edward C. Thomas ___________________________________________ City Administration Gregory K. Wilkinson City Administrator City Departments For the Fiscal Year Ended June 30, 2013 Prepared by: City Attorney Steven W. Moore City Clerk Lynda L. Bushong Finance Department Community Development Laurie L. Lineberry Donald (Pat) Wicks, CPA Finance Donald (Pat) Wicks Director Wendy Wrenn, CPA Accounting Manager Fire Department Jack McArthur, Chief Sharon Willoughby Budget Manager Dana Alexander Czarina Gallegos Linda Johnson Norma Sanchez Accountants About the Cover: The City of Yuma's newest neighborhood fire station, Station No. 1, 353 South 3rd Avenue, had its Grand Opening on Wednesday June 26, 2013. A flag raising ceremony and dedication of the station to E.F. Sanguinetti was followed by an open house. The new station replaces the previous station opened on this site in 1958. Some of the architectural aspects of the building were drawn from the 2nd Avenue Grammar School which occupied the same site from 1908 until it was destroyed by fire in 1952. It is the fourth Fire Station No. 1 since the department was founded in 1900. The building is being named for Mr. E. F. Sanguinetti who was instrumental in organizing and equipping this first official fire company in the City of Yuma. Human Resources Jack Dodd Information Technology Laura S. Neinast Municipal Court Douglas S. Stanley, Judge Parks and Recreation Rebecca J. Chavez Police Department John J. Lekan, Chief Public Works Joel Olea Utilities Jay Simonton CITIZENS OF YUMA MAYOR and COUNCIL MUNICIPAL COURT City of YUMA CITY ADMINISTRATOR CITY ATTORNEY General Counsel Litigation Prosecution CITY ADMINISTRATION PARKS & RECREATION Administration Parks/Mall Maintenance Community Relations Recreation Heritage Area Parks Development City Clerk Civic Center Baseball Complex Risk Management Economic Development Arts and Culture HUMAN RESOURCES Human Resources Facilities Maintenance Golf Courses POLICE DEPARTMENT FINANCE COMMUNITY DEVELOPMENT Administration and Budget Field Services Administration Accounting Support Services Building Safety Customer Service Neighborhood Services FIRE DEPARTMENT Purchasing Community Planning Professional Services INFORMATION TECHNOLOGY SERVICES Business Application And Support Operations PUBLIC WORKS Community Risk Reduction Fleet Services Telecommunications And Support Special Operations Streets/Solid Waste Engineering UTILITIES Utility Treatment Utility Systems City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2013 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 Position Statement of Activities FUND FINANCIAL STATEMENTS Governmental Funds: Balance Sheet Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position 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 Position Statement of Revenues, Expenses and Changes in Fund Net Position 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 City Road Tax 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 Nonmajor Governmental Funds Capital Projects Fund Local Transportation Assistance Special Revenue Fund Public Safety Tax Special Revenue Fund Highway User Revenue Fund Grants Fund Community Redevelopment Fund Two Percent Tax Special Revenue Fund Yuma Mall Maintenance Special Revenue Fund i Page v ix 3 5 20 21 24 25 26 27 28 29 30 31 56 57 60 61 66 68 70 71 72 73 74 75 76 77 78 City of Yuma, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2013 TABLE OF CONTENTS (Concluded) FINANCIAL SECTION (Concluded) Nonmajor Proprietary Funds: Enterprise Funds: Combining Statement of Net Position Combining Statement of Revenues, Expenses and Changes in Fund Net Position Combining Statement of Cash Flows Budgetary Comparison Schedules: Water Enterprise Fund Wastewater Enterprise Fund Solid Waste Enterprise Fund Radio Communication Enterprise Fund Desert Hills Golf Course Enterprise Fund Internal Service Funds: Combining Statement of Net Position Combining Statement of Revenues, Expenses and Changes in Fund Net Position 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 87 90 91 92 93 94 95 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years Changes in Net Position - Last Ten Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years Governmental Funds 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 Ten 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 - Last Ten Fiscal Years Demographic and Economic Statistics - Last Ten Calendar Years Principal Employers - Current Year and Eight Fiscal Years Ago 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 100 101 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 INTRODUCTORY SECTION iii iv FINANCE DEPARTMENT One City Plaza Yuma, Arizona 85364-1436 (928) 373-5087 Fax: (928) 373-5084 City of YUMA October 18, 2013 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, 2013. 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, 2013, 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, 2013, 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 Several major agricultural companies maintain operations here. Their chief billion in revenues annually1. 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 continue to be cornerstones in the military’s flight training and equipment testing programs. Both 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 is the home of one of the first squadrons of the new Joint Strike Fighter, the new generation aircraft being adopted by all military services. 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. General sales tax saw an increase of 4.2% for fiscal year 2013. Tax data show that construction, an important segment of the sales tax measure, equaled the pace set in 2012, largely due to sizeable construction projects at Marine Corps Air Station-Yuma (MCAS) and the new Federal courthouse downtown. Projects at MCAS will continue into 2014 to be joined by major construction at Yuma Regional Medical Center. Overall, sales taxes are anticipated conservatively to grow 3% for fiscal year 2014. 25 General Sales Tax (millions) 20 15 10 5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year Ending June 30, Yuma has continued as a regional retail and services center during 2013. The retail classification of the sales tax showed a 4.9% increase, showing that retail sales continue to be relatively strong. 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. 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 2013. 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 2013, city and Federal funds combined to manage and improve both the West and East Wetlands to restore natural vegetation and wildlife habitat, and improve recreational opportunities for area residents. The City will also continue its focus in developing historic and cultural activities in these areas as these are 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 recent completion of the Judge John M. Roll U.S. Courthouse will add to the economic vitality of the area. 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 33 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, 2012. This is the thirty first 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 x FINANCIAL SECTION 1 2 3033 N. Central Ave., Suite 300 Phoenix, Arizona 85012 Tel (602) 277-9449 Fax (602) 277-9297 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of the City Council City of Yuma, Arizona Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Yuma, Arizona (the City), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Yuma, Arizona, as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com 3 Change in Accounting Principle As described in Note 1, the City implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, for the year ended June 30, 2013, which represents a change in accounting principle. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 15 and pension and budgetary comparison information on pages 56 through 61 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 18, 2013, on our consideration of City of Yuma, Arizona’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Yuma, Arizona’s internal control over financial reporting and compliance. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants October 18, 2013 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, 2013. 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 position grew by $5.0 million for the fiscal year, governmental activities increased $3.3 million while business-type activities of the City increased $1.7 million. • The City’s government-wide net position totaled $485.6 million at June 30, 2013. Of this amount, $82.6 million is available (unrestricted) to finance ongoing programs, $39.1 million in governmental programs and $43.5 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 position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (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, solid waste, radio communications and golf course operations. The government-wide financial statements can be found on pages 20-21 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Yuma, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. 5 MANAGEMENT’S DISCUSSION AND ANALYSIS Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains eleven 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 three funds considered to be major funds. Data from the other eight 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 City Road Tax Debt Service Nonmajor Governmental Funds continued: Local Transportation Assistance Public Safety Tax Highway User Revenue Grants Two Percent Tax Yuma Mall Maintenance Nonmajor Governmental Funds: Community Redevelopment Capital Projects 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 24 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, Sewer, and Solid Waste Authority and for its Radio Communications and 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: Solid Waste Radio Communications Desert Hills Golf Courses Nonmajor Internal Service Funds: Equipment Replacement Equipment Maintenance Insurance Reserve Employee Benefits Trust Workers Compensation 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 90. 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. 6 MANAGEMENT’S DISCUSSION AND ANALYSIS The basic proprietary fund financial statements can be found on pages 28-30 of this report. 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 31 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 56 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 Position. As noted earlier, net position 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 $485.6 million at the close of the fiscal year. Governmental Business-type Activities Activities Total June 30, Net Position: 2012 (millions) Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net position: Net Investment in capital assets Restricted Unrestricted Total net position 2013 $ 92.1 316.0 A s restated 96.8 317.4 $ 73.2 321.9 408.1 414.2 122.3 15.9 A s restated A s restated $ 165.3 637.9 395.1 402.5 803.2 816.7 130.3 17.3 173.7 5.7 183.1 5.4 296.0 21.6 313.4 22.7 138.2 147.6 179.4 188.5 317.6 336.1 208.4 22.4 39.1 205.9 24.8 35.9 163.2 9.0 43.5 167.8 7.4 38.8 371.6 31.4 82.6 373.7 32.2 74.7 266.6 $ 215.7 214.0 $ 485.6 $ $ 2012 2013 68.2 334.3 $ 269.9 $ 2012 2013 $ $ $ 165.0 651.7 480.6 The largest portion of the City of Yuma's net position 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 position 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 position, 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 position rose to $485.6 million, up $5.0 million from the prior year. Governmental activities increased $3.3 million while business-type activities increased $1.7 million. Most of the increase would be attributable to a reduction in debt service as the Net Investment in capital assets is net of related debt. Capital asset acquisitions were lower than the depreciation expense this year attributing to the decrease in Capital assets in both governmental and business-type activities. Unrestricted net position are those assets available to finance programs in the upcoming fiscal year and would increase when the portion of taxes and other revenues exceed operating expenses but are not invested in capital assets. 7 MANAGEMENT’S DISCUSSION AND ANALYSIS Statement of Activities. Already noted was the statement of activities’ purpose in presenting information in how the government's net position changed during the most recent fiscal year. A chart of changes in net position follows. Governmental activities Changes in Net Position Fiscal Year Ended June 30, Business-type activities 2012 (millions) Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Franchise taxes Intergovernmental, unrestricted Unrestricted investment earnings 2013 $ Total revenues 12.4 2012 2013 A s restated $ Total 8.2 $ 43.6 4.0 1.7 2.4 17.9 9.5 37.6 3.0 26.0 0.8 A s restated $ 2012 2013 A s restated 41.6 $ 56.0 $ 49.8 7.8 1.5 10.3 4.0 9.5 3.9 28.2 10.1 36.3 3.1 23.9 0.9 - 0.1 9.5 37.6 3.0 26.0 0.8 10.1 36.3 3.1 23.9 1.0 95.0 102.8 51.4 53.5 146.4 156.3 10.3 43.0 15.0 12.8 0.2 5.1 5.2 - 12.5 39.9 12.8 14.2 0.4 4.5 5.5 - 23.2 16.2 3.2 4.7 2.5 23.4 16.2 2.9 2.2 2.4 10.3 43.0 15.0 12.8 0.2 5.1 5.2 23.2 16.2 3.2 4.7 2.5 12.5 39.9 12.8 14.2 0.4 4.5 5.5 23.4 16.2 2.9 2.2 2.4 91.6 89.8 49.8 47.1 141.4 136.9 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 Solid Waste Radio Communications Golf courses Total expenses Transfers Change in net position (0.1) $ 3.3 $ 13.1 $ 1.7 $ 6.5 $ 5.0 0.2 $ 19.6 For the fiscal year, net position increased $5.0 million, with $3.3 of the increase coming from governmental activities. The increase in assets in governmental activities is related in great part to construction of capital assets, rather than accumulation of cash or other liquid assets. The reader should remember that the basis of accounting used in the government-wide statement of activities excludes capital expenditures while its revenues include general taxes whose primary purpose is for the construction of those very assets or their related debt service (i.e., public safety or road sales taxes). 8 MANAGEMENT’S DISCUSSION AND ANALYSIS Governmental Activities Revenues Governmental activities revenues totaled $95.0 million for fiscal year 2013, down from 2012, mostly in capital grants and contributions. 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 67% of governmental revenues for the year. Capital grants and contributions, the third segment of governmental activities revenues, include donations and capital asset contributions. Charges for services count building permits and inspections, fines, recreation fees, police services and civic center rental fees among its largest sources. The charges for services category amounts to 13% of governmental revenues. Property taxes represent 10% of governmental revenues. The large majority of property taxes are levied for general purposes with a small levy for downtown mall maintenance. No property taxes are levied for debt service. Various grants and contributions and franchise taxes account for most of the remaining governmental revenues. Some of the more significant changes in governmental activities revenues are noted: • • • • • Sales taxes increased 3.6% from 2012 as the economy continues to improve. Capital grants and contributions decreased $16.2 million or 91% due primarily to a one-time contribution in FY2012 of $12.7 million from the Arizona Department of Transportation (ADOT). In addition many grants completed in FY2012. Intergovernmental revenues increased $2.1 million or 8.8%. State-shared income taxes increased 21.0% from 2012, as anticipated, while state-shared gas tax increased a slight 2.8%. State-shared sales taxes increased by 4.5% because of the state’s improving economic output. Charges for services increased by $4.2 million (51.2%) primarily from the new Ambulance Service being active for a full year. Property taxes decreased 5.9% to $9.5 million as the City Council opted not to increase the property tax rate to offset a decline in assessed valuation. RevenuesGovernmental Activities Sales taxes 40% Franchise taxes 3% Intergovernmental revenues 27% Property taxes 10% Capital grants and contributions 2% Operating grants and contributions 4% Unrestricted investment earnings 1% Charges for services 13% Expenses Governmental expenses totaled $91.6 million for the fiscal year. Of the expenses, 46.9% or $43 million is related to public safety for police, fire and municipal court services. Parks, recreation and culture expenses amounted to $12.8 million, or 13.9% and environmental health and protection was $0.2 million, 0.2%, while streets and community design and development expenses amounted to 16.4% and 5.6% respectively. General government expenses came to $10.3 million, or 11.2%. Interest on long-term debt was $5.2 million, or 5.7% of governmental expenses. Overall, governmental activities expenses increased $1.8 million over 2012, led by an increase in 9 MANAGEMENT’S DISCUSSION AND ANALYSIS Public Safety expenditures of $3.1 million, mainly due to the City’s assumption of ambulance services in the Fire Department. Expenses and Program Revenues-Governmental Activities 50.0 45.0 40.0 Expenses 35.0 Program Revenues Millions 30.0 25.0 20.0 15.0 10.0 5.0 General government Public safety Streets Parks, Environmental recreation and health and culture protection Community design and development Interest on long-term debt 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 $43.6 million in charges for services, 83.5% comes from the City’s two utility operations, water and wastewater. The remaining charges are from solid waste, radio communications and the City’s two golf courses, Desert Hills and Desert Hills Par 3. The $7.8 million in contributions are payments for capacity charges, development fees, and constructed additions to the City’s water and wastewater infrastructure by subdivision and other developers as well as grant funds for the radio communications fund. Finally, investment earnings make up less than 0.5% of revenues for the City’s business activities. Revenues-Business-type Activities Charges for services 85% Capital grants and contributions 15% 10 MANAGEMENT’S DISCUSSION AND ANALYSIS Expenses Water and wastewater services account for 79.3% of the City’s business-type activities with solid waste and golf courses making up the remaining 20.7%. Water expenses amounted to $23.2 million while wastewater expenses totaled $16.2 million. Solid Waste, Radio Communications, and Desert Hills Golf Courses recorded expenses of $3.2 million, $4.7 million and $2.5 million, respectively, for a total of $10.4 million. Expenses vs. Program Revenues-Business-type Activities A B C D E F Contributions G H I J Charges for Services 30 Expenses 25 Millions 20 15 10 5 0 Water Wastewater Solid Waste Radio Communications Golf Because the City’s business-type activities are supported by user charges, the chart above shows more reliance on program revenues. Moreover, for both water and wastewater, program revenues include capacity charges for new service and developer additions to the utility infrastructure. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental funds. The combined fund balances of governmental funds for the fiscal year ended June 30, 2013, is $49.5 million, a decrease from 2012 of $4.7 million. A review of some of the more significant funds follows. General Fund The fund balance of the General Fund increased by $1.3 million for the fiscal year. Revenues increased by $6.0 million. Sales taxes, the city’s largest source of General Fund revenues, increased $0.8 million (4.2%) to $19.2 million as the local economy continues to improve after the recession. State-shared income taxes showed an increase of 21.0%, as anticipated, up $1.7 million to $9.5 million, while state-shared vehicle registration tax (auto lieu tax) decreased 5.1% to $2.9 million due to a census recalculation from 2010. State-shared sales taxes, on the other hand, increased $.3 million or 4.5%. Total expenditures increased $2.9 million, or 5.4%, to $57.2 million. Most of the increase occurred in General Government and in Public Safety expenditures. General Government expenditures rose as a result of new city-wide Information Technology projects. Public Safety expenditures increased in part due to the City operating ambulance services for a full year. 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. The fund balance grew by $1.6 million for the year. In the same manner as general sales tax in the General Fund, sales taxes increased in 2013 to $9.6 million. Operational expenditures decreased from 2012, as the fund had fewer capital improvement projects during the year. 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Debt Service Debt Service Fund expenditures remained at $13.5 million per debt retirement schedules. Fund balance reflects debt service reserves accumulated in accordance with the development agreement for the Yuma Palms regional center. Highway User Revenue Fund (HURF) This fund, which accounts for the expenditure of state-shared gasoline taxes, showed a decrease in fund balance of $0.3 million for the year. The City’s portion of those taxes increased by 2.8% for the fiscal year to $5.9 million. All maintenance expenditures for streets and retention basins are made in the HURF Fund. Expenditures remained steady from 2012 at $6.0 million. Grants Fund The City continues to receive much needed assistance from both the state and federal levels. During 2013, revenues decreased to $3.5 million, due principally to reclassifying radio communication grants to the new Radio Communication Enterprise Fund. Again this year, Homeland Security was the primary source of grants, funding the 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 Housing and Urban Development Home Grant Programs to help with housing rehabilitation in the Yuma High revitalization area. Community Development Block Grant revenues increased to $1.2 million for 2013. Capital Projects Fund The Capital Projects Fund’s fund balance dropped to $15.5 million this year as the city continued to expend the proceeds of the 2007 bond sale. Capital expenditures decreased in 2013 to $8.2 million. Proprietary funds. The City’s enterprise funds posted an overall increase in net position of $1.7 million for the fiscal year ended June 30, 2013. Results were mixed between the various funds with the Water, Wastewater, and Solid Waste Funds posting increases in net position while the Radio Communications and Desert Hills Golf Course Funds showed the reverse. Water Enterprise Fund Operating revenues for the Water Fund increased by $0.6 million or 2.7% for the year ending June 30, 2013. Operating expenses increased by 2.3% with attendant improvements coming on line. With these changes, operating income rose 4.9% to $3.4 million. Capital contributions, increasing to $1.8 million, increased the fund’s net position by $92,918. Wastewater Enterprise Fund The Wastewater Fund operating revenues increased 1.1% from fiscal 2012. Rate-based charges increased 2.0% to $12.9 million. Operating expenses increased by 2% with income from operations decreasing to $0.6 million. Capital contributions decreased by some $3.9 million mostly due to the decrease of capacity charges for the Avenue B to C Colonia improvement district. Capital contributions led to the fund’s net position increase of $2.8 million. 12 MANAGEMENT’S DISCUSSION AND ANALYSIS Radio Communications With the reclassification of the Radio Communications fund to an enterprise fund, federal grants for the Yuma Regional Communications System were classified in the fund. This includes intergovernmental revenues and expenses of $1.7 million. Operating revenues increased 22.9% to $1.7 million due to other agencies purchasing more communication products through the YRCS. Operating expenses increased 480% to $3.1 million, with the fund’s net position decreasing to $3.3 million. GENERAL FUND BUDGETARY HIGHLIGHTS A detailed budgetary comparison schedule for the fiscal year ended June 30, 2013, can be found starting on page 57. A summary of that schedule follows: Budget Revenues and Transfers In Taxes Intergovernmental Other Transfers In Total Expenditures and Transfers Out Expenditures Transfers Out Total Change in Fund Balance Variance with Final Original Final Actual $ 31,793,201 19,755,425 5,434,455 557,323 57,540,404 $ 31,793,201 19,755,425 5,434,455 557,323 57,540,404 $ 32,039,602 20,093,119 9,058,512 503,084 61,694,317 57,014,838 4,462,813 57,014,838 4,462,813 57,194,134 3,241,211 (179,296) 1,221,602 61,477,651 61,477,651 60,435,345 1,042,306 $ 1,258,972 $ 5,196,219 $ (3,937,247) $ (3,937,247) $ 246,401 337,694 3,624,057 (54,239) 4,153,913 General Fund revenues and transfers ended the year $4.2 million over expectations. Ambulance transport accounted for $2.8 million of this as this was the first full year of transport so we were conservative in our budget. Building permits and fees accounted for $0.7 million as construction increased more than anticipated. The important revenue sources of city and state sales taxes increased by 3.6% and 4.5%, respectively. Expenditures for the fund came in at $0.2 million over budget due to the ambulance transport being operational for a full year. There were sufficient ambulance revenues received to offset this budget deficit as mentioned above. General Government, Parks and Recreation, and Community Development showed savings of $0.5 million, $0.3 million, and $0.2 million respectfully. Savings in budget occurred in most departments with the City’s drive to reduce expenditures throughout the year. The City continued to target all areas of expenditure reduction, primarily personal services expenditures through attrition savings. Combined with discretionary spending reductions, such as travel and capital expenditures, the General Fund’s anticipated reduction of fund balance was changed from a reduction of $4.0 million to an increase of $1.3 million. CAPITAL ASSETS At June 30, 2013, the City of Yuma’s investment in capital assets in both governmental and business-type activities amounted to $638.0 million, net of depreciation. This includes land, buildings, equipment, and infrastructure (roadways and bridges). Capital assets for governmental activities decreased slightly while business-type capital assets decreased by 3.7%. These changes included the following: • • • The Avenue 3E Bridge widening project, a major link to Marine Corps Air Station-Yuma and to local agriculture cooling plants from Interstate 8, neared completion. A number of major water and sewer lines were completed. The Fire Station #1 replacement project was completed. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS Change in Capital Assets (In Millions) Governmental Activities July 1, 2012 Business-type Activities Net Additions/ June 30, Deletions 2013 July 1, 2012 (as restated)* Total Net Additions/ June 30, Deletions 2013 (as restated)* Land $ 56.8 Buildings 78.9 Improvements 41.3 Infrastructure 223.3 Equipment 47.9 Construction in Progress 62.6 Accumulated Depreciation (193.4) Total $ 317.4 $ 2.0 12.0 3.7 34.6 2.7 (43.7) (12.7) $ 58.8 90.9 45.0 257.9 50.6 18.9 (206.1) $ 10.5 164.7 228.3 11.7 39.8 (120.7) $ 0.1 39.8 0.5 (38.1) (14.6) $ 10.6 164.7 268.1 12.2 1.7 (135.3) $ 69.4 255.6 313.1 257.9 62.8 20.6 (341.4) $ (1.4) $ 316.0 $ 334.3 $ (12.3) $ 322.0 $ 638.0 Additional information on capital assets can be found in Note II-E starting on page 41. DEBT ADMINISTRATION At June 30, 2013, after scheduled debt payments, governmental activity debt decreased to $122.3 million while business activity debt decreased to $173.7 million. The state limits the amount a municipality may issue in general obligation debt to 20% of the City’s secondary assessed valuation for combined water, wastewater, artificial light, parks, open space preserves, playgrounds and recreational facilities. Debt related to other projects is limited to 6% of the valuation. The current debt limitation for the former type is $125.2 million. This City currently has no outstanding general obligation debt nor is there any debt outstanding for the other type of issuance. 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 ratings downgrades 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 44-48. Summary of Long-Term Debt (Millions) Governmental activities 2013 General Obligation Bonds $ Yuma Municipal Property Corporation Bonds 112.2 Net Unamortized Premium/Issuance Costs .9 Improvement Districts 3.5 Contracts Payable Compensated Absences Total Long-Term Debt Business-type activities 2012 $ 2013 - $ - Total 2012 $ 2013 1.4 $ - 2012 $ 1.4 119.1 110.3 113.8 222.5 232.8 1.0 4.6 - 3.0 59.4 3.2 63.9 3.8 3.5 59.4 4.0 4.6 63.9 5.8 5.7 1.0 .8 6.7 6.5 $ 122.3 $ 130.3 $ 173.7 $ 183.1 $ 296.0 $ 313.4 14 MANAGEMENT’S DISCUSSION AND ANALYSIS ECONOMIC FACTORS Yuma County’s growth is sluggish but improving. The county grew by an estimated 4,040 residents to 200,870 with the City of Yuma representing 47.5% of the county’s population. Since 2000, the City has grown by 28% to an estimated 90,660 for Census 2010. (City-reported errors provided to the Census Bureau were finally recorded during fiscal year 2013). 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 $3 billion annually. The area’s 85,000-plus winter visitors add over $500 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 3.6% increase this year, compared to its historic growth rate of 7%. This still compares more than favorably to the large metropolitan areas of the state. For fiscal year 2014, General Fund revenues were projected with a 4.5% increase. With sales tax statistics improving, the economy continues to strengthen. During 2013, the following major economic events occurred: • • • The new F-35 Joint Strike Fighter began arriving in December 2012 and the new squadrons continue to grow. Additional construction projects necessitated by the new squadron will continue into 2014. Yuma Regional Medical Center (YRMC) continues to expand its footprint and its services as new construction projects were started. In addition to a new cancer center, the hospital will be replacing its overburdened emergency room with a new, much-expanded facility. In addition, YRMC added six newlygraduated physicians as it begins a new era in its history – a teaching hospital. According to the Yuma Sun, “At $5.3 billion, - which is bigger than 40 countries – Yuma’s metropolitan area would rank 152 out of 195 countries.” Not all economic statistics reflect positive results; however, in that Yuma County continues to suffer what appear to be higher unemployment figures than most of the state, according to the Arizona Department of Economic Security (DES). Seasonal farm employment continues to skew this statistic. The City combats this problem as the largest contributor to the Greater Yuma Economic Development Corporation whose two-fold mission is to encourage new employers to the area and to assist local employers in their expansion efforts. 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, Yuma, AZ 85364, telephone (928) 373-5087. The reader may also visit the City’s website at www.yumaaz.gov for an electronic version of this report. 15 16 BASIC FINANCIAL STATEMENTS 17 18 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 City of Yuma, Arizona Statement of Net Position June 30, 2013 Assets Cash and Investments Receivables, Net Internal Balances Inventory, at cost Prepaid Items Capital Assets: Non-depreciable Depreciable, Net Total Assets Governmental Activities $ 76,069,281 13,714,315 713,379 810,088 778,185 Business-type Activities $ 63,266,227 10,204,156 (713,379) 384,099 34,553 Total $ 139,335,508 23,918,471 1,194,187 812,738 77,707,920 238,274,448 408,067,616 12,315,629 309,667,763 395,159,048 90,023,549 547,942,211 803,226,664 2,158,451 2,040,826 2,586,210 9,076,319 1,729,265 152,374 3,732,352 106,661 3,887,716 2,193,200 6,318,562 9,182,980 2,274,289 8,400,000 303,182 8,218,724 2,577,471 16,618,724 3,505,291 108,131,335 138,172,721 634,479 164,560,432 179,437,469 4,139,770 272,691,767 317,610,190 208,428,445 163,246,020 371,674,465 158,995 542,765 11,389,024 3,730,014 6,530,787 39,114,865 $ 269,894,895 9,009,138 43,466,421 $ 215,721,579 158,995 9,551,903 11,389,024 3,730,014 6,530,787 82,581,286 $ 485,616,474 Liabilities Accounts Payable and Deposits Accrued Liabilities Accrued Interest Payable Unearned Revenue Noncurrent Liabilities: Due within one year Current portion of Accrued Compensated Absences Current portion of Debt Due in more than one year Accrued Compensated Absences Debt Total Liabilities Net Position Net Investment in capital assets Restricted for: General government projects Debt Service Streets Public safety equipment and facilities Parks, recreation and cultural facilties Unrestricted Total Net Position The accompanying notes are an integral part of these financial statements. 20 City of Yuma, Arizona Statement of Activities For the Year Ended June 30, 2013 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 Solid Waste Radio Communications Golf Courses Total Business-type Activities Total Expenses Charges for Services $ 10,344,547 43,050,518 14,980,358 $ 2,011,250 6,672,514 - 12,787,296 878,834 70,908 - - 19,167 40,109 1,473,036 1,166,890 156,481 5,134,031 5,153,056 Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities $ $ $ $ 2,798,593 747,455 1,669,116 - - 91,606,287 12,361,191 23,226,596 16,164,925 3,213,287 4,663,454 2,468,691 21,696,314 14,710,937 3,307,349 1,714,068 2,157,726 49,736,953 43,586,394 $ 141,343,240 $ 55,947,585 3,979,682 $ 3,979,682 General Revenues: Property taxes Sales taxes Franchise taxes Intergovernmental, unrestricted Unrestricted investment earnings Total general revenues Transfers Total general revenues and transfers Change in net position Net position-beginning Net position-ending The accompanying notes are an integral part of these financial statements. 21 537,286 1,744,285 1,805,011 4,277,510 1,693,625 7,776,146 $ 9,520,431 (7,585,842) (34,708,888) (14,443,072) - Total $ (7,585,842) (34,708,888) (14,443,072) (11,837,554) - (11,837,554) (97,205) - (97,205) 304,488 - 304,488 (5,153,056) - (5,153,056) (73,521,129) - (73,521,129) - 274,729 2,823,522 94,062 (1,255,761) (310,965) 274,729 2,823,522 94,062 (1,255,761) (310,965) 1,625,587 1,625,587 (73,521,129) 1,625,587 (71,895,542) 9,549,431 37,624,004 3,043,054 25,917,347 796,019 76,929,855 (122,167) 76,807,688 3,286,559 266,608,336 $ 269,894,895 25,518 25,518 122,167 147,685 1,773,272 213,948,307 $ 215,721,579 9,549,431 37,624,004 3,043,054 25,917,347 821,537 76,955,373 76,955,373 5,059,831 480,556,643 $ 485,616,474 22 FUND FINANCIAL STATEMENTS 23 City of Yuma, Arizona Balance Sheet Governmental Funds June 30, 2013 Assets City Road Tax General Cash and Investments $ 15,657,504 Cash with Fiscal Agents Receivables, Net of Allowances for Uncollectibles: Accounts Receivable 2,860,610 Intergovernmental 2,176,856 Special Assessments 20,169 Delinquent Property Taxes 375,542 Accrued Interest 10,132 Due from Other Funds 2,471,549 Inventory, at cost 49,932 Prepaid Items 137,400 Total Assets and Other Debits $ 23,759,694 $ $ Debt Service Other Nonmajor Governmental Funds Total 5,716,533 - $ 618,797 9,694,650 $ 25,740,436 - $ 47,733,270 9,694,650 35,565 587,263 2,749 2,265 6,344,375 372 3,460,000 348 350 $ 13,774,517 1,713,772 2,396,312 3,859 9,491 16,030 450 $ 29,880,350 4,610,319 5,160,431 3,480,169 379,401 22,720 2,471,549 65,962 140,465 $ 73,758,936 $ $ $ 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 Balances: Nonspendable: Inventory Prepaid Items Restricted for: General government projects Debt Service Streets Public safety equipment and facilities Parks, recreation and cultural facilities Committed to: General government projects Debt Service Streets Public safety equipment and facilities Parks, recreation and cultural facilities Sanitation facilities Public works projects Unassigned: Total Fund Balances Total Liabilities and Fund Balances $ 903,392 860,631 345,717 1,835,068 3,944,808 $ 106,750 36,358 31,625 174,733 49,932 137,400 934,983 18,692,571 19,814,886 $ 23,759,694 $ 431,234 94,059 877,024 5,568,488 6,970,805 1,441,568 991,048 7,185,000 877,024 2,586,210 345,717 10,895,181 24,321,748 2,265 350 16,030 450 65,962 140,465 6,167,377 - 542,765 - 158,995 5,221,647 3,730,014 6,530,787 158,995 542,765 11,389,024 3,730,014 6,530,787 6,169,642 6,344,375 543,115 $ 13,774,517 352,174 2,876,062 1,158,621 2,081,401 529,345 254,019 22,909,545 $ 29,880,350 352,174 934,983 2,876,062 1,158,621 2,081,401 529,345 254,019 18,692,571 49,437,188 $ 73,758,936 The accompanying notes are an integral part of these financial statements. 24 192 7,185,000 2,586,210 3,460,000 13,231,402 City of Yuma, Arizona Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position June 30, 2013 Amounts reported for governmental activities in the statement of net position 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 #68 Improvement District #67 Net unamortized deferred charges or premiums are not recorded in the governmental funds Net position 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 position Net position - Governmental Activities per the Statement of Net Position The accompanying notes are an integral part of these financial statements. 25 $ 49,437,188 309,005,624 1,818,862 (5,685,351) (104,980,000) (2,510,000) (950,000) (906,335) 24,664,907 $ 269,894,895 City of Yuma, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2013 Revenues: Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Special Assessments Use of Money and Property Contributions and Donations Miscellaneous Total Revenues Expenditures: Current: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Outlay Capital Projects: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Safety Debt Service Principal Interest and Fiscal Agent Fees Total Expenditures Revenues Over/(Under) Expenditures Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending General City Road Tax $ 32,039,602 1,723,236 20,093,119 5,390,648 1,526,176 171,466 246,986 $ 9,622,796 345 430,155 7,080 61,191,233 10,060,376 8,650,569 37,554,579 7,466,207 625,746 2,154,786 - Debt Service Other Nonmajor Governmental Funds $ $ 8,619,334 10,686,829 1,902,438 42,480 69,476 798,784 $ 50,281,732 1,723,236 30,779,948 7,293,431 1,526,176 1,134,000 818,706 69,476 1,052,850 22,119,341 94,679,555 - 758,772 2,589,539 5,507,234 3,497,694 9,409,341 40,769,864 7,662,020 10,963,901 - - 104,205 104,205 121,988 - 1,767,554 1,386,623 5,133,575 1,665,369 - 581,790 26,146 141,245 - 159,991 3,690,160 4,020,511 1,448,532 58,109 159,991 3,690,160 4,602,301 1,474,678 199,354 - - 8,350,000 5,205,448 3,300 8,350,000 5,208,748 3,366,021 156,758 1,134,000 174,605 - Total Governmental Funds 1,308,605 57,194,134 3,651,701 13,555,448 24,992,224 99,393,507 3,997,099 6,408,675 (12,246,843) (2,872,883) (4,713,952) 503,084 (3,241,211) (4,810,470) 12,246,869 - 22,073 (4,841,762) 12,772,026 (12,893,443) (2,738,127) (4,810,470) 12,246,869 (4,819,689) (121,417) 1,258,972 1,598,205 26 (7,692,572) (4,835,369) 18,555,914 4,571,437 543,089 30,602,117 54,272,557 $ 19,814,886 $ 6,169,642 543,115 $ 22,909,545 $ 49,437,188 The accompanying notes are an integral part of these financial statements. 26 $ 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, 2013 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-governmental funds $ (4,835,369) Portions of revenues recorded on the statement of activities do not provide current financial resources and are not recorded as revenues in the funds: Property taxes revenue Public safety ambulance revenue Governmental funds report capital outlays as expenditures. In the statement of activities, however, the cost of those assets is allocated over their useful lives as depreciation Depreciation recorded in statement of activities Capital outlay expenditures reported as additions to assets: Capital outlay expenditures-governmental funds Infrastructure maintenance expenditures recorded as capital outlay but not capitalized as asset additions Governmental funds report debt principal service payments as expenditures. The reduction in liability is recorded on the statement of net position in the government-wide statements Increase in compensated absences expense not recorded in governmental funds (31,946) 699,237 (11,732,707) 11,791,853 (1,160,215) 8,350,000 (104,125) Investment earnings of the internal service funds are general revenues on the statement of activities 21,368 Interest payments accrued in government-wide statements are not recorded in governmental activities until paid 55,692 Net revenues of internal service funds in excess of expenses reduce governmental activities expenses on the statement of activities Contributions of infrastructure assets are not recorded as revenues in the governmental funds Change in net position of governmental activities 552,673 (319,902) $ 3,286,559 The accompanying notes are an integral part of these financial statements. 27 City of Yuma, Arizona Statement of Net Position Proprietary Funds June 30, 2013 Water Fund Assets Current Assets: Cash and Investments Receivables, Net of Allowance for Uncollectibles: Accounts Receivable Intergovernmental Accrued Interest Inventory, at cost Prepaid Expenses Total Unrestricted Current Assets Restricted Assets: Cash and Investments: Cash with Fiscal Agents 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 Current Portion-Accrued Compensated Absences 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 Total Current Liabilities Payable from Restricted Assets Total Current Liabilities Noncurrent Liabilities: Long-Term Contracts Payable Bonds Payable Unamortized Premium/Issuance Costs Accrued Compensated Absences Total Noncurrent Liabilities Total Liabilities Net Position Net investment in capital assets Restricted for: Debt Service Unrestricted Total Net Position Business-Type Activities-Enterprise Funds Wastewater Other Fund Funds $ 16,759,502 $ 12,201,396 $ 1,314,754 $ Totals 30,275,652 Governmental Activities Internal Service Funds $ 18,641,361 5,173,779 1,410 6,320 217,513 9,304 22,167,828 3,072,143 141,382 13,510 2,012 15,430,443 706,782 1,087,729 1,101 166,586 23,237 3,300,189 8,952,704 1,230,521 20,931 384,099 34,553 40,898,460 51,765 8 9,502 744,126 637,720 20,084,482 11,773,379 2,872,358 417,427 15,063,164 37,230,992 3,516,724 14,410,687 17,927,411 33,357,854 3,300,189 15,290,103 17,283,045 417,427 32,990,575 73,889,035 20,084,482 1,867,721 106,000,530 151,258,331 2,809,780 803,671 (75,474,704) 187,265,329 187,265,329 224,496,321 8,726,156 55,545,009 113,555,054 1,840,679 918,081 (50,360,130) 130,224,849 130,224,849 163,582,703 3,102,865 3,341,094 7,551,823 (9,502,568) 4,493,214 4,493,214 7,793,403 10,593,877 164,648,404 268,154,479 12,202,282 1,721,752 (135,337,402) 321,983,392 321,983,392 395,872,427 219,610 19,251 222,733 27,736,777 (21,221,627) 6,976,744 6,976,744 27,061,226 627,228 69,406 47,421 2,760,450 141,790 2,081,407 5,727,702 150,039 51,846 215,750 824,550 96,972 660,529 1,999,686 463,260 31,122 64,420 66,651 625,453 1,240,527 152,374 263,171 3,585,000 303,182 2,741,936 66,651 8,352,841 371,166 14,859 31,652 1,034,919 1,594,525 3,047,121 58,463 417,387 17,400 2,215,350 575,485 3,284,085 9,011,787 12,888 22,610 2,155,203 414,931 2,605,632 4,605,318 625,453 71,351 417,387 40,010 4,370,553 990,416 5,889,717 14,242,558 3,047,121 29,608,177 82,201,350 2,306,429 288,636 114,404,592 123,416,379 25,201,894 24,553,650 688,932 203,140 50,647,616 55,252,934 142,703 142,703 768,156 54,810,071 106,755,000 2,995,361 634,479 165,194,911 179,437,469 62,577 62,577 3,109,698 80,227,643 78,525,163 4,493,214 163,246,020 6,976,744 6,937,036 13,915,263 2,072,102 27,732,504 2,532,033 9,009,138 44,179,800 16,974,784 $ 101,079,942 $ 108,329,769 7,025,247 216,434,958 Adjustment to reflect consolidation of internal service fund activities related to enterprise funds Net position of business-type activities $ (713,379) $ 215,721,579 The accompanying notes are an integral part of these financial statements. 28 $ 23,951,528 City of Yuma, Arizona Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2013 Water Fund Operating Revenues: Metered Water Sales Commercial Raw Water Wastewater Charges Meters, Connections and Services Intergovernmental Charges for Services Green Fees and Concessions Equipment Rental Miscellaneous Charges Total Operating Revenues Operating Expenses: Operations and Maintenance Depreciation Total Operating Expenses Operating Income/(Loss) Business-Type Activities-Enterprise Funds Wastewater Other Fund Funds $ 21,036,016 196,847 - $ 14,625,060 $ - Totals $ 21,036,016 196,847 14,625,060 Governmental Activities Internal Service Funds $ - 340,614 3 21,573,480 27,512 14,652,572 1,693,625 5,014,525 1,893,929 257,207 8,859,286 368,126 1,693,625 5,014,525 1,893,929 257,207 3 45,085,338 6,147,099 1,359,535 997,924 8,504,558 10,808,731 7,344,314 18,153,045 8,493,978 5,597,400 14,091,378 8,567,849 1,754,328 10,322,177 27,870,558 14,696,042 42,566,600 6,417,915 1,512,302 7,930,217 3,420,435 561,194 (1,462,891) 2,518,738 574,341 Non-Operating Revenues/(Expenses): Interest Gain/(Loss) on Disposal of Assets Interest and Fiscal Agent Fees Miscellaneous Revenues Total Non-Operating Revenues/(Expenses) 10,180 (5,195,198) 122,834 13,416 (2,115,007) 58,365 1,922 13,482 25,518 (7,310,205) 194,681 21,368 118,184 - (5,062,184) (2,043,226) 15,404 (7,090,006) 139,552 Income/(Loss) before Contributions and Transfers (1,641,749) (1,482,032) (1,447,487) (4,571,268) 713,893 1,805,011 (70,344) 4,277,510 (36,928) 255,206 (25,767) 6,082,521 255,206 (133,039) (750) Capital Contributions Transfers In Transfers Out Change in Net Position Net Position - Beginning Net Position - Ending 92,918 2,758,550 (1,218,048) 1,633,420 100,987,024 105,571,219 8,243,295 23,238,385 $ 101,079,942 $ 108,329,769 $ 7,025,247 $ 23,951,528 Adjustment for consolidation of internal service fund activities related to enterprise funds Change in net position of business-type activities 139,852 $ The accompanying notes are an integral part of these financial statements. 29 1,773,272 713,143 City of Yuma, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2013 Governmental Activities Business-Type Activities-Enterprise Funds 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 Water Fund Wastewater Fund Other Funds Totals $ 20,211,292 (4,630,129) (6,397,165) 122,834 $ 13,920,033 (3,242,277) (5,281,020) 58,365 $ 9,070,444 (2,101,079) (6,821,735) 13,481 $ 43,201,769 (9,973,485) (18,499,920) 194,680 9,306,832 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 (Used for) Capital and Related Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities 5,455,101 161,111 Internal Service Funds $ 8,512,880 (1,114,344) (2,677,914) (2,830,727) - 14,923,044 1,889,895 (70,344) (36,928) 255,206 (25,767) 255,206 (133,039) 772,712 (750) (70,344) (36,928) 229,439 122,167 771,962 1,805,011 (860,388) (3,977,552) (2,262,771) (5,443,974) 4,277,510 (550,767) (787,750) (2,294,966) (2,205,014) (515,095) - 6,082,521 (1,926,250) (4,765,302) (4,557,737) (7,648,988) (1,477,254) 118,183 - (10,739,674) (1,560,987) (515,095) (12,815,756) (1,359,071) 11,621 11,621 10,195 10,195 1,837 1,837 23,653 23,653 20,470 20,470 2,253,108 1,323,256 Net Increase/(Decrease) in Cash and Cash Equivalents (1,491,565) 3,867,381 Cash and Cash Equivalents, July 1 33,314,231 26,261,426 1,437,462 61,013,119 17,318,105 Cash and Cash Equivalents, June 30 $ 31,822,666 $ 30,128,807 $ 1,314,754 $ 63,266,227 $ 18,641,361 Reconciliation of Operating Income/(Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss) $ $ $ (1,462,891) $ 2,518,738 $ Adjustments to Reconcile Operating Income/(Loss) Depreciation and Amortization Expense (Increase)/Decrease in Accounts Receivable (Increase)/Decrease in Inventories (Increase) in Deposits (Increase)/Decrease in Prepaid Items Increase/(Decrease) in Accounts Payable Increase/(Decrease) in Accrued Payroll and Related Taxes Increase/(Decrease) in Due from Other Gov't Units (Decrease) in Claims Incurred but Not Reported Increase/(Decrease) in Customer Dep/Unearned Rev Other Operating Activity Revenue Total Adjustments Net Cash Provided by Operating Activities Noncash Transactions Affecting Financial Position Purchase of Assets with Vendor Provided Financing Contributions of Capital Assets Total Noncash Transactions Affecting Financial Position 3,420,435 561,194 (122,708) 574,341 7,344,314 (1,386,487) (7,712) 13,000 (8,547) (241,820) 5,597,400 (652,880) (320) (81,744) 1,754,328 210,527 (100,796) (23,098) (262,482) 14,696,042 (1,828,840) (108,508) 13,000 (31,965) (586,046) 1,512,302 (83,175) (34,607) (42,454) 259,724 43,917 6,898 122,834 5,886,397 40,241 (67,155) 58,365 4,893,907 31,411 (566) 1,197 13,481 1,624,002 115,569 (566) (59,060) 194,680 12,404,306 (10,602) (285,634) 1,315,554 $ 9,306,832 $ 5,455,101 $ $ 476,055 - $ 4,756 - $ $ 476,055 $ 4,756 $ The accompanying notes are an integral part of these financial statements. 30 161,111 $ 14,923,044 $ 1,889,895 - $ 480,811 - $ - - $ 480,811 $ - City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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. During the year ended June 30, 2013, the City implemented the provisions of GASB Statement 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASB Statement 63 establishes standards for reporting deferred outflows of resources, deferred inflows of resources, and Net Position. Amounts that are required to be reported as deferred outflows of resources will now be reported in a statement of financial position in a separate section following assets. Similarly, amounts that are required to be reported as deferred inflows of resources will be reported in a separate section following liabilities. The statement of net position reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. 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. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB [Financial Accounting Standards Board] and AICPA Pronouncements. This statement incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance that was included in pronouncements issued by the FASB, by the Accounting Principles Board and by the American Institute of Certified Public Accountants (AICPA) issued on or before November 30, 1989. No accounting changes were applied as a result of implementing this statement. 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. 31 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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 Position and the Statement of Activities, a statement showing changes in net position. 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. 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. 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. Debt Service Fund – This fund accounts for and reports financial resources for, and the payment of, long-term debt principal, interest, and related costs 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. Other Nonmajor 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 Highway Users Revenue; Grants; Community Redevelopment; Local Transportation Assistance; Public Safety Tax; Two Percent Tax; and Yuma Mall Maintenance Special Revenue Funds along with the Capital Projects 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. 32 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Other Nonmajor 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 Solid Waste, Radio Communications, and Desert Hills 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 Position. 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). Grant revenues are recognized when all eligibility requirements are met, not necessarily when received. Grant monies that have been received but are as yet unearned are carried forward as deferred revenue. However, earned but not yet received grant monies are recognized as revenue and carried forward as receivables. This practice is defined and supported by GASB Statement 33, as it pertains to “government-mandated nonexchange transactions,” paragraphs 19-25. Expenditures are recorded when the liability is incurred with the exception of debt service. Debt service expenditures are recorded when the payment is due or when amounts have been accumulated in the debt service fund for payments to be made early in the following 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. 33 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 ii. Two public hearings are held prior to the budget's final adoption in order to obtain taxpayer comments. 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. The City considers short-term investments (including restricted assets) in the State of Arizona Local Government Investment Pool (LGIP), mutual fund-money market, U.S. Treasury bills and notes with original maturities of three months or less at acquisition date to be cash equivalents. 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. 34 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 3) Inventories and Prepaid Items: Inventories consist primarily of expendable supplies held for consumption. Prepaid items represent services for which payment is made in advance. Both inventories and prepaid items are accounted for using the consumption method; therefore, expenditures are recorded at the time inventories are used or the services incurred. Inventories are maintained on a perpetual inventory basis, verified through annual physical counts, and valued using the weighted average method. Nonspendable governmental fund balance for both inventories and prepaid items indicate 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, 2013, the estimated amounts of unbilled revenues for the Water, Wastewater and Solid Waste Enterprise Funds are $2,318,787, $1,334,787, and $263,049, 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 position. 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 35 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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. 9) Fund Balance Policies: In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned. Nonspendable and Restricted fund balances represent the restricted classifications and Committed, Assigned, and Unassigned represent the unrestricted classifications. Nonspendable fund balance includes amounts that cannot be spent because either 1) it is not in a spendable form, such as inventory or prepaid items or 2) it is legally or contractually required to be maintained intact. Restricted fund balance is comprised of externally (outside the City) enforceable limitations imposed by creditors, grantors, contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling legislation (changes in City Charter). Committed fund balance includes self-imposed limitations adopted at the highest level of decision making authority, namely, City Council. City Council approval is required to commit resources or to rescind the commitment. Assigned fund balance represents limitations imposed by management. Assigned fund balance items are submitted by the Finance Director for approval/nonapproval by the City Administrator. Unassigned fund balance represents the residual net resources in excess of the other classifications. The General Fund is the only fund that can report a positive unassigned fund balance and any governmental fund can report a negative unassigned fund balance. When both restricted and unrestricted resources are available for specific expenditures, unrestricted resources are considered spent before restricted resources. Within unrestricted resources, committed and assigned are considered spent (if available) before unassigned amounts. 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, revenues are recorded as received with the exception of taxes collected within 60 days by the County Treasurer and reported as current year revenues (County Treasurer collections for June of the current fiscal year). Delinquent property taxes (collections of noncurrent years) are recorded similarly. 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. General and holiday leave with related benefits for the governmental funds, $4,926,637, and for the internal service funds, $75,981, 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, Solid Waste, Radio Communications, and Desert Hills Enterprise Funds are $352,868, $247,647, $75,254, $32,273 and $68,639 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, 2013, the amount accumulated in sick pay and related benefits is $7,815,941, including $169,893 attributable to Internal Service Funds and $1,297,778 to Enterprise Funds. Under GASB Statement No. 16, Accounting for Compensated Absences, the 36 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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, $758,715, 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 and Insurance Reserve Internal Service Funds is $17,473 and $775 respectively and Water, Wastewater, Solid Waste, Radio Communications, and Desert Hills Golf Course Enterprise Funds of $77,558, $52,465, $13,687, $3,584 and $13,687 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. 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, 2013, the City’s deposits had a carrying value of $6,558,984 and a bank balance of $10,522,789. The difference represents outstanding checks and other reconciling items. The main City checking account is fully collateralized and is disclosed with investments. All pledged bank collateral for demand deposits was held by an independent institution outside the bank’s holding company. 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, 2013, there are no deposits exposed to custodial credit risk. Cash on hand at June 30, 2013 included petty cash and change funds balances of $27,951 which are included as money market funds below. 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. Per GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City reports certain money market investments with a remaining maturity of one year or less at time of purchase at amortized cost instead of fair value. The difference between the fair value and amortized value for June 30, 2013 is $914. 37 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 The City’s investment balances at June 30, 2013 were as follows: Investment Type Fair Value US Treasury Notes/Bills $ 6,000,372 US Agencies: F ederal Farm Credit Bank 3,491,702 F ederal Home Loan Bank 11,282,867 F ederal Home Loan Mtg. Corp. 22,021,874 F ederal National Mtg. Assoc. 21,312,972 Money Market Funds 38,885,986 Wells Fargo-Bus Market Fund 12,087,987 State Investment Pool 5 17,665,727 Total Value $ 132,749,487 Investment Maturities in Years < 1 Year $ 6,000,372 1-2 Years $ - 2-3 Years $ - 3-5 Years $ - 4,298,095 6,097,500 1,599,819 38,885,986 12,087,987 17,665,727 4,998,866 5,988,452 5,986,822 - 3,491,702 1,985,906 3,988,480 9,780,789 - 5,947,442 3,945,542 - $ 86,635,486 $ 16,974,140 $ 19,246,877 $ 9,892,984 Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City’s investment policy reduces exposure to investment credit risk by limiting authorized securities to the following: 1. Obligations of the United States Government, its agencies and instrumentalities, excluding mortgagebacked securities; 2. Fully insured or collateralized certificates of deposit and other evidence of deposit at banks and savings and loan associations; 3. Bankers acceptances issued by the ten largest domestic banks; 4. Commercial paper rated A-1/P-1; 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, 2013, 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 5 was rated AAA/s1+ by Standard and Poor’s at year end. 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% 4.52% U. S. Government agencies, instrumentalities and government sponsored enterprises .......................................................................No more than 80% 43.77% 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% 0% Maximum per issuer...........................................................................10% of total C. P 0% Repurchase Agreements.............................................................................................. 100% 0% Money Market Funds.................................................................................................... 100% 38.40% State Investment Pool .................................................................................................. 100% 13.31% 38 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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 five years, and there are no holdings with a stated maturity beyond five years. The portfolio at June 30, 2013 had a weighted average maturity of 577 days. The policy does not set a maximum for this measurement. Custodial Credit Risk The custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City reduces exposure to custodial credit risk in its safekeeping and collateralization policies. All security transactions are conducted on a delivery versus payment basis and are held by a third party custodian, in the City of Yuma’s name. The custodian is required to issue a safekeeping receipt listing the specific instrument, rate, and maturity. Although there were no certificate of deposit or repurchase agreements at June 30, the collateralization level of at least 102% of market value is required for these securities. B. Property Tax The City's property tax is levied by the Yuma County Treasurer on or before the third Monday in August based upon the previous January 1 full cash value as determined by the Yuma County Assessor. Under Arizona law two assessed valuations are used. One is for primary taxes (used to fund operating expenditures) and the other is for secondary taxes (used to meet general obligation debt service requirements). The primary tax levy is limited to a two percent increase over the previous year with adjustments for growth and annexation. Secondary taxes are tied to the annual debt service requirements of voter-approved general obligation bonds. Taxes are due in two equal installments on October 1 and March 1 following the levy date and are delinquent on the first day of November and May, respectively. Liens are filed when taxes are delinquent for two years. Assessed values, levies and collections for fiscal year 2011-12 (Tax Year 2011) and fiscal year 2012-13 (Tax Year 2012), follow: Tax Year 2011 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 $ $ $ $ $ $ 636,293,155 1.5787 10,045,160 666,827,282 None 9,640,017 343,027 391,213 Tax Year 2012 $ $ $ $ $ $ 602,696,459 1.5787 9,514,752 625,801,724 None 9,143,721 351,550 375,542 C. Accounts Receivable Receivable balances are stated net of an allowance for doubtful accounts. Within the Solid Waste Enterprise 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: 39 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Intergovernm ental Accounts General $ 2,860,610 City Road Tax 35,565 Debt Service 372 Water 5,173,779 Wastewater 3,072,143 Other Funds-Governmental 1,713,772 Other Funds-Enterprise 706,782 Internal Service 51,765 Total $ 13,614,788 Special Assessm ent Delinquent Property Taxes Accrued Interest Total $ 2,176,856 587,263 1,410 141,382 2,396,312 1,087,729 8 $ 20,169 3,460,000 - $ 375,542 3,859 - $ 10,132 2,749 348 6,320 13,510 9,491 1,101 9,502 $ 5,443,309 625,577 3,460,720 5,181,509 3,227,035 4,123,434 1,795,612 61,275 $ 6,390,960 $ 3,480,169 $ 379,401 $ 53,153 $ 23,918,471 Allow ance Am ount 2013 Enterprise Funds: Solid Waste Water Wastewater $ 2012 16,153 197,833 120,823 $ 13,046 152,946 94,768 D. Due from Other Governments (Intergovernmental Receivables) Amounts due from other government units at June 30, 2013, are as follows: Agencies Federal State County Local Total $1,940,568 587,263 $ 178,449 - $ 57,839 - $2,176,856 587,263 536,849 234,825 26,737 302,152 7,297 28,431 - 352,670 544,146 234,825 28,431 814,096 119,992 654,822 - 83,375 1,410 141,382 42,482 - 84,154 - 1,554 1,084,992 - - Governmental Funds Major Funds General $ City Road Tax Non-major Funds Highway User Revenue Public Safety Tax Mall Maintenance Grants 787,359 Community Redevelopment 119,992 Capital Projects Enterprise Funds: Major Funds Water Wastewater 58,007 Non-major Funds Solid Waste Radio Communications 476,940 Desert Hills Golf Course Internal Service Funds Equipment Maintenance Total 1,410 1,554 481,416 1,183 $1,442,298 8 $4,113,965 40 $ 256,659 $ 578,038 1,183 8 $6,390,960 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 E. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2013, follows: Balance June 30, 2012 (as restated) Increases Decreases Capital Assets Not Being Depreciated: Land $ 56,809,690 $ 2,275,418 $ 319,902 Construction in Progress Total Capital Assets Not Being Depreciated Other Capital Assets: Buildings Improvements Infrastructure Equipment Total Other Capital Assets Less Accumulated Depreciation for: Buildings Improvements Infrastructure Equipment Total Accumulated Depreciation Other Capital Assets, Net Total Capital Assets, Governmental Activities Balance June 30, 2013 62,629,744 7,159,346 50,846,376 58,765,206 18,942,714 119,439,434 9,434,764 51,166,278 77,707,920 78,866,309 41,336,594 223,331,449 47,896,385 12,055,569 3,684,093 34,601,211 3,183,905 543,724 90,921,878 45,020,687 257,932,660 391,430,737 53,524,778 543,724 28,980,468 28,829,915 98,503,583 37,122,092 193,436,058 2,526,217 2,709,601 5,484,031 2,525,160 13,245,009 543,724 543,724 39,103,528 206,137,343 197,994,679 40,279,769 - 238,274,448 $ 317,434,113 $ 49,714,533 $51,166,278 $ 50,536,566 444,411,791 31,506,685 31,539,516 103,987,614 $ 315,982,368 Government activities capital assets net of accumulated depreciation at June 30, 2013, include: General Capital Assets, Net Internal Service Fund Capital Assets, Net $ 309,005,624 6,976,744 Total $ 315,982,368 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 $ 1,073,878 2,411,519 2,612,678 14,156 32,224 5,588,252 1,512,302 Total $ 13,245,009 The June 30, 2012 capital asset balance above for governmental activities was restated for the reclassification of the Radio Communications Special Revenue fund into an Enterprise fund (decrease of $3,465,325). The June 30, 2012 capital asset balance for business-type activities below was increased by the same amount. 41 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Business-type activities: Capital Assets Not Being Depreciated: Land Construction in Progress Total Capital Assets Not Being Depreciated Balance June 30, 2012 (as restated) $ 10,529,664 39,751,873 Increases $ 64,213 478,229 Decreases $ Balance June 30, 2013 38,508,350 $ 10,593,877 1,721,752 50,281,537 542,442 38,508,350 12,315,629 Other Capital Assets: Buildings Improvements Equipment 164,648,404 228,339,520 11,727,233 39,814,959 529,635 54,586 164,648,404 268,154,479 12,202,282 Total Other Capital Assets 404,715,157 40,344,594 54,586 445,005,165 Less Accumulated Depreciation for: Buildings Improvements Equipment Total Accumulated Depreciation 8,224,683 105,150,470 7,320,791 3,301,158 9,633,068 1,761,818 54,586 11,525,841 114,783,538 9,028,023 120,695,944 14,696,044 54,586 135,337,402 Other Capital Assets, Net 284,019,213 25,648,550 - 309,667,763 $ 334,300,750 $ 26,190,992 Total Capital Assets, Business-type activities $ 38,508,350 $ 321,983,392 Depreciation was charged to programs as follows: Water Wastewater Solid Waste Radio Communications Golf courses Total $ 7,344,315 5,597,400 32,016 1,541,775 180,538 $ 14,696,044 Construction in progress is comprised mainly of water projects (waterline replacements and water transmission lines) and wastewater projects (wastewater treatment plant upgrades and improvements, and collection facilities). F. Retirement Plans The City has adopted GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers as amended by GASB Statement No. 50, Pension Disclosures, 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. 42 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 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, 2013, active ASRS members and the City were required by statute to contribute at the actuarially determined rate of 11.14 percent (10.9 percent retirement and 0.24 percent long-term disability for members and 10.25 percent retirement, 0.65 percent health and 0.24 percent long-term disability for the City) of the members’ annual covered payroll. The City’s contributions to ASRS for the years ended June 30, 2013, 2012, and 2011 were $2,982,796, $2,929,058, and $2,490,013, 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 11.5 percent and 36.44 percent, respectively, of the members’ annual covered payroll. The City’s contributions to EORP for the years ended June 30, 2013, 2012 and 2011 were $89,132, $80,694, and $70,831, respectively, which were equal to the required contributions for the year. Agent plans - For the year ended June 30, 2013 active PSPRS members were required by statute to contribute 9.55 percent of the members’ annual covered payroll, and the City was required to contribute at the actuarially determined rate of 26.19 percent for police and 34.15 percent for fire. Funded Status and Funding Progress – Funding progress of the two agent plans as of June 30, 2012, 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 $ 43,985,939 $ 30,455,972 71,320,513 57,516,428 $ 27,334,574 27,060,456 61.7% $ 53.0% 9,175,414 6,560,746 297.9% 412.5% 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, 2012 (the date of the most recent actuarial report) follows: 43 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Contribution Rates Annual Pension Cost Contributions Made Actuarial Valuation Date Actuarial Cost Method Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Projection C ost-of-Living Adjustments Amortization Method R emaining Amortization Period Asset Valuation Method Police Fire 26.19% $2,237,780 $2,237,780 June 30, 2012 Indiv idual entry age 34.15% $1,881,117 $1,881,117 June 30, 2012 Indiv idual entry age 8.00% 5.0%-9.0% 5% None Level Percent-of-pay closed 24 years (underfunded) Smoothed market 8.00% 5.0%-9.0% 5% None Level Percent-of-pay closed 24 years (underfunded) Smoothed market Trend Information - Information for each of the agent plans as of the most recent actuarial valuations follows: Annual Pension Net Pension Cost POLICE FIRE 2010 2011 2012 2010 2011 2012 $ Percent Contributed 1,847,772 2,115,546 2,237,780 1,557,575 1,787,905 1,881,117 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Obligation $ - G. Noncurrent Liabilities The following changes occurred in noncurrent liabilities during the fiscal year ended June 30, 2013: Balance Balance July 1, 2012 June 30, (as restated) Additions Retirements 2013 Governmental activities: Yuma Municipal Property Corporation $119,055,000 Improvement District #67 1,860,000 Improvement District #68 2,765,000 Unamortized Discount/Issuance Costs (810,830) Unamortized Premium 1,772,858 Compensated Absences 5,683,228 Total Governmental Activity Noncurrent Liabilities $130,325,256 Business-type activities: General Obligation Bonds $ 1,420,000 Yuma Municipal Property Corporation 113,765,000 Unamortized Discount/Issuance Costs (531,533) Unamortized Premium 3,684,545 Contracts Payable 63,921,836 Compensated Absences 856,493 Total Business-type Activity Noncurrent Liabilities $ 183,116,341 $ Due Within One Year 1,184,412 $ 6,890,000 910,000 255,000 (66,830) 122,523 1,088,060 $ 112,165,000 950,000 2,510,000 (744,000) 1,650,335 5,779,580 $ 7,185,000 950,000 265,000 2,274,289 $1,184,412 $ 9,198,753 $ 122,310,915 $10,674,289 $ $ 1,420,000 3,425,000 (26,576) 184,227 4,478,041 161,804 $ $ $ 9,642,496 $ 173,716,817 242,972 $ 242,972 44 110,340,000 (504,957) 3,500,318 59,443,795 937,661 3,585,000 4,633,724 303,183 $ 8,521,907 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 The City has adopted GASB Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. The following disclosures are due in part to that statement. Contracts Payable Business-type activities – During fiscal year 2004, the City began construction of major additions to its utility infrastructure, including additional water and wastewater treatment plants. Financing for these additions comes from the Arizona Water Infrastructure Financing Authority (WIFA) in the form of 20-year loan contracts. The city pledged each system’s net revenues as collateral for the debt. Bonded Debt - Excluding Refunded Debt The following is a description of bonded indebtedness at June 30, 2013. 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. Special Assessment Bonds – Special assessment bonds are issued by the City on behalf of improvement districts created by property owners for a specific purpose. Property owners in the designated districts agree to be assessed for the principal and interest costs of repaying the bonds. As trustee for improvement districts, the City is responsible for collecting the assessments levied against the owners of the property within the improvement districts and for disbursing these amounts to retire the bonds issued to finance the improvements. Special assessment bonds are secured by liens against the property within each district. In the event of delinquency, the City may secure payment of the bonds through sale of the property. All activity related to these bonds is recorded in the City’s Debt Service Fund. Municipal Property Corporation Bonds – In 1970, the City created the Municipal Property Corporation to finance the acquisition or construction of various City projects. Bonds are issued by the corporation and are repaid through unrestricted revenues, primarily excise taxes, by the City. For each issue, the City has pledged its excise tax collections as follows: Excise Taxes – transaction privilege taxes, license fees and franchise fees, along with transaction privilege taxes, income taxes and excise taxes imposed by the State and distributed to the City (except public safety and special sales taxes); Public Safety Taxes – a special two-tenths of one percent (.2%) privilege license tax approved by qualified voters in 1994 for public safety and criminal justice facilities and communication equipment; and Special Sales Taxes – a special two percent (2%) privilege license tax approved by qualified voters in 1993 on the gross proceeds of sales or gross income from the business of bars, restaurants and hotels. For each bond series, the corresponding pledged tax was: Issue 2003 – Series A 2003 – Series B 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 Taxes Project(s) funded Refunding 1995 issue Art Center/Fire Station construction 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, Solid Waste and Desert Hills Golf Course Enterprise Funds, and Highway User Revenue Special Revenue Fund, 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 45 Project(s) funded Water treatment plant/water distribution City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 For the year ended June 30, 2013 the pledged revenues described above amounted to $69,020,018 for governmental activities and $42,513,368 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, 2013 debt service for governmental activities totaled $13,555,448 and for business-type activities $15,686,579, or 20% and 37% of pledged revenues, respectively. Summary of Bonded Debt Net Unamortized Interest Rate Yuma Municipal Property Corporation Bonds: 2003 - Series A Refunding 2003 - Series B Refunding 2003 - Series B Addition 2007 - Series B 2007 - Series D 2007 - Series Utilities 2010 - Series B Refunding 4.21% 3.67% 4.18% 4.50% 4.50% 4.50% 4.23% Issue Date Maturity Date 2/18/2003 2/18/2003 2/18/2003 11/20/2007 11/20/2007 11/20/2007 6/29/2010 2015 2015 2022 2027 2027 2032 2025 Total MPC Bonds Total Bonds Authorized and Issued Authorized and Issued Outstanding Premium/ (Issue Costs) 14,640,000 2,905,000 9,000,000 30,785,000 61,100,000 127,925,000 29,530,000 4,475,000 845,000 5,515,000 24,935,000 49,505,000 110,340,000 26,890,000 (21,546) (348,384) 1,260,490 2,995,361 15,775 275,885,000 222,505,000 3,901,696 $ 275,885,000 $222,505,000 $ 3,901,696 Legal Debt Margin Under Arizona's Constitution, outstanding general obligation bonded debt for combined water, sewer, artificial light, parks, open space preserves, playgrounds and recreational facilities may not exceed 20% of a City's net secondary assessed valuation. Outstanding general obligation debt for all other purposes may not exceed 6% of a City's net secondary assessed valuation. The legal borrowing capacity of the City of Yuma at June 30, 2013 follows: Water, Etc. (20%) Secondary Assessed Valuation All Other (6%) Legal Limit Outstanding G.O. Debt $625,801,724 $ 125,160,345 $ 37,548,103 - Available Debt Margin $ 125,160,345 46 $ 37,548,103 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Annual Debt Service Requirements to Maturity BONDS AND IMPROVEMENT DISTRICTS Improvement District No. 67 Bonds Principal Interest Total July 1 2013 950,000 $ 35,150 985,150 $ 985,150 Improvement District No. 68 Bonds 265,000 117,970 382,970 280,000 105,515 385,515 290,000 92,355 382,355 305,000 78,725 383,725 320,000 64,390 384,390 335,000 49,350 384,350 350,000 33,605 383,605 365,000 17,155 382,155 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $ 2,510,000 $ 559,065 $ 3,069,065 MPC Bonds 2003 Series 450,000 241,847 470,000 224,973 490,000 207,347 515,000 182,847 535,000 157,098 560,000 134,628 585,000 110,828 610,000 85,672 635,000 58,833 665,000 30,258 $ MPC Bonds 2003 Refunding 1995A 1,425,000 173,203 1,598,203 1,490,000 119,765 1,609,765 1,560,000 62,400 1,622,400 2013 2014 2015 $ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 35,150 950,000 $ 4,475,000 $ 355,368 $ 4,830,368 MPC Bonds 2007 Series Utility 3,585,000 5,382,538 8,967,538 3,750,000 5,239,138 8,989,138 3,920,000 5,089,138 9,009,138 4,095,000 4,893,138 8,988,138 4,270,000 4,688,388 8,958,388 4,440,000 4,453,538 8,893,538 4,620,000 4,231,538 8,851,538 4,810,000 4,000,538 8,810,538 5,015,000 3,802,125 8,817,125 5,225,000 3,551,375 8,776,375 5,450,000 3,290,125 8,740,125 5,685,000 3,017,625 8,702,625 5,930,000 2,733,375 8,663,375 6,190,000 2,436,875 8,626,875 8,587,375 6,460,000 2,127,375 6,745,000 1,844,750 8,589,750 7,050,000 1,507,500 8,557,500 7,365,000 1,155,000 8,520,000 7,695,000 786,750 8,481,750 8,040,000 402,000 8,442,000 $ 110,340,000 $ 64,632,829 $ 174,972,829 5,515,000 $ 1,434,331 $ 691,847 694,973 697,347 697,847 692,098 694,628 695,828 695,672 693,833 695,258 6,949,331 MPC Bonds 2003 Refunding 1995B 270,000 35,375 305,375 280,000 25,250 305,250 295,000 14,750 309,750 $ 845,000 $ 75,375 $ 920,375 MPC Bonds 2007 Series B 1,230,000 1,064,970 2,294,970 1,280,000 1,015,770 2,295,770 1,335,000 964,570 2,299,570 1,390,000 911,170 2,301,170 1,445,000 855,570 2,300,570 1,505,000 797,770 2,302,770 1,565,000 737,570 2,302,570 1,630,000 674,970 2,304,970 1,700,000 606,510 2,306,510 1,770,000 534,260 2,304,260 1,850,000 458,150 2,308,150 1,930,000 365,650 2,295,650 2,010,000 281,212 2,291,212 2,100,000 193,275 2,293,275 2,195,000 98,775 2,293,775 $ 24,935,000 47 $ 9,560,192 $ 34,495,192 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 BONDS AND IMPROVEMENT DISTRICTS MPC Bonds 2007 Series D MPC Bonds 2010 Refunding 2001 Principal Interest Total Principal Interest Total July 1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2,435,000 2,540,000 2,655,000 2,760,000 2,870,000 2,985,000 3,110,000 3,240,000 3,375,000 3,520,000 3,670,000 3,825,000 3,995,000 4,170,000 4,355,000 2,348,825 2,251,425 2,149,825 2,043,625 1,905,625 1,762,125 1,612,875 1,457,375 1,323,725 1,154,975 978,975 795,475 604,225 404,475 195,975 4,783,825 4,791,425 4,804,825 4,803,625 4,775,625 4,747,125 4,722,875 4,697,375 4,698,725 4,674,975 4,648,975 4,620,475 4,599,225 4,574,475 4,550,975 1,375,000 1,425,000 1,465,000 1,840,000 1,910,000 2,010,000 2,110,000 2,210,000 2,305,000 2,400,000 2,500,000 2,610,000 2,730,000 - 1,155,081 1,100,082 1,057,331 1,013,381 939,781 844,282 743,781 638,281 549,881 454,800 352,800 240,300 122,850 - 2,530,081 2,525,082 2,522,331 2,853,381 2,849,781 2,854,282 2,853,781 2,848,281 2,854,881 2,854,800 2,852,800 2,850,300 2,852,850 - $ 49,505,000 $ 20,989,525 $ 70,494,525 $ 26,890,000 $ 9,212,631 $ 36,102,631 CONTRACTS PAYABLE July 1 Principal 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 WIFA Loan #920069-03 Interest 518,032 535,184 552,904 571,210 590,123 609,662 629,848 650,702 672,247 694,505 199,468 182,316 164,596 146,290 127,377 107,838 87,652 66,798 45,253 22,995 6,024,417 $ 1,150,583 Total WIFA Loan #910043-03 Principal Interest Total 717,500 717,500 717,500 717,500 717,500 717,500 717,500 717,500 717,500 717,500 2,370,953 2,449,455 2,530,557 2,614,343 2,700,904 2,790,331 2,882,719 2,978,166 3,076,773 3,178,645 912,937 834,435 753,333 669,547 582,986 493,559 401,171 305,724 207,117 105,245 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 3,283,890 $ 7,175,000 $ 27,572,846 $ 5,266,054 $ 32,838,900 WIFA Loan #920088-04 1,744,727 937,033 1,810,189 870,342 1,878,108 801,150 1,948,574 729,361 2,021,685 654,879 2,097,539 577,603 2,176,238 497,427 2,257,891 414,242 2,342,607 327,937 2,430,501 238,393 2,521,694 145,490 2,616,802 49,092 2,681,760 2,680,531 2,679,258 2,677,935 2,676,564 2,675,142 2,673,665 2,672,133 2,670,544 2,668,894 2,667,184 2,665,894 $ 25,846,555 $ 6,242,949 $ 32,089,504 48 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 H. Interfund Transfers INTERFUND TRANSFERS Transfers Out Transfers In Governmental funds - major funds: Radio Comm $ 125,500 General Fund Mall Maintenance 22,073 Debt Service Debt Service 3,219,138 General Fund Debt Service City Road Tax Debt Service Public Safety Tax General Fund Two Percent Desert Hills Golf Course Debt Service HURF Radio Comm Debt Service Capital Improvement Total Governmental Activities Debt Service Radio Comm Debt Service Radio Comm Debt Service Radio Comm Solid Waste Water Wastewater Total Enterprise Funds Equipment Maint Radio Comm Total Internal Service Funds Funds 4,810,470 Two Percent Tax $ 503,084 General Fund 3,219,138 HURF 101,597 Public Safety Tax Water Wastewater Solid Waste City Road Tax Impact Fee Nonmajor funds: 2,942,551 General Fund Mall Maintenance 503,084 104,706 101,597 6,750 1,057,574 12,893,443 Total Governmental Activities Enterprise funds: 21,017 Radio Comm 4,750 62,469 7,875 32,053 4,875 133,039 General Fund HURF Water Wastewater Solid Waste Equip Maint Desert Hills Golf Course Two Percent Tax Total Enterprise Funds 2,942,551 62,469 32,053 21,017 4,810,470 1,057,574 22,073 12,772,026 125,500 6,750 7,875 4,875 4,750 750 104,706 255,206 Internal Service funds: 750 750 Total Internal Service Funds Funds Total Transfers Out $ 13,027,232 - Total Transfers In $ 13,027,232 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 Two Percent Tax Fund to the General Fund ($503,084 per a riverfront development agreement). 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 $122,167 are for debt service ($115,539), Radio Maintenance $133,000 and a CIP project funded by Two Percent Tax $104,076. 49 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 I. Interfund Receivables and Payables Interfund balances at June 30, 2013, follow: Interfund Receivable Majo r Funds Interfund Payab le General Nonmajo r Governmental Funds: Community Redev elopment Fund Grants Fund Yuma Mall Maintenance Fund Internal Service Funds: Equipment Maintenance W orkers Compensation $ 100,909 748,992 27,123 481,161 1,113,364 Total Receivable $ 2,471,549 Because they serve primarily governmental funds, the interfund activity noted above in the Internal Service Equipment Maintenance, Insurance Reserve and Workers Compensation Funds 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 Position. The internal balances amount appearing on that statement, $713,379, represents net balances allocated to business-type activities for consolidation of internal service funds net profits. J. 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 provides health benefits to its employees and their dependents through the Yuma Area Benefit Consortium (trust). The trust is comprised of four participating entities and provides benefits through a selffunding trust agreement with its members. The consortium purchases insurance for claims in excess of $100,000 per individual per plan year. A third-party administrator provides claim processing and record keeping services. The City is responsible for paying premiums while employees must contribute for costs of dependent coverage. The trust sets rates through projection of claims cost and administrative expenses, along with a determination of sufficient fund balance to maintain rate stability and trust integrity. Should the consortium become insolvent or otherwise unable to discharge its liabilities, the participating entities shall be assessed a pro rata share. This assessment may not exceed the amount of each participating entity’s annual contribution. Benefit payments to beneficiaries are limited to the amount in the trust. Should the assessment not yield sufficient funds to pay outstanding claims, the trust’s obligation to pay claims is limited to the amount in the trust after assessment and the trustees and the participating entities have no further obligation of any type. 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. 50 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Insurance Reserve Fund Beginning of Year Fiscal Year 2012-13 2011-12 2010-11 Claims and Changes In Liability $ 72,477 60,112 48,058 End of Year Claim Estimates $ Workers Compensation Fund Payments 249,826 528,959 437,591 $ 256,757 516,594 425,537 Beginning of Year Liability $ Claims and Changes In Liability 65,546 72,477 60,112 Estimates $ 1,248,076 998,021 1,017,121 $ 370,420 1,234,436 545,050 Claim End of Year Payments Liability $ 649,123 $ 969,373 984,381 1,248,076 564,150 998,021 K. Construction Commitments The City has active construction projects as of June 30, 2013. At year-end the government’s commitments with contractors for specific projects are as follows: Construction Commitments Public Safety Streets Water System Original Contract $ 3,496,536 1,281,020 1,782,908 Spent to Date $ 3,232,479 421,364 483,408 Remaining Commitment $ 264,057 859,656 1,299,500 $ $ $ 6,560,464 4,137,251 2,423,213 L. Radio Communications Enterprise Fund Since its inception in 2006, the Radio Communications Fund has been reported as a component of the General Fund and in 2010 was reclassified as a Special Revenue fund. The fund was created to account for the expenditures of the Yuma Regional Communications System Council which was created in 2005 to oversee the county-wide communication project. Various Yuma County entities pay into this fund for the maintenance and replacement of their radios, thus creating a fund balance. In addition the Council oversees many federal grants awarded for the creation of the county-wide radio communications system. In order to better account for the activity of this fund, the Radio Communications Fund is being reclassified as an Enterprise Fund. In the fiscal year ending June 30, 2013, the Radio Communications Enterprise Fund was created to account more appropriately for the proceeds, expenditures, and assets of the YRCS. Prior year balances have been restated as follows: 51 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 Nonmajor Governmental Funds Balance Sheet Other Enterprise Funds Original Change Restated Original Change Restated Cash and Investments $ 8,141,964 $ (861,175) $ 7,280,789 $ 1,333,026 $ 861,175 $ 2,194,201 Accounts Receivable 146,011 (94,896) 51,115 514,610 94,896 609,506 Intergovernmental 299,732 (54,534) 245,198 616 54,534 55,150 20,134 - 20,134 Current Assets Delinquent Property Taxes Accrued Interest 3,945 Inventory, at cost 15,036 820 Prepaid Items (445) - 8,627,642 Total Current Assets (1,011,050) - - 3,500 570 445 15,036 820 65,790 139 7,616,592 1,914,751 1,011,050 1,015 65,790 139 2,925,801 Noncurrent Assets Buildings - - - 3,102,865 - 3,102,865 Improvements Other than Buildings - - - 3,066,405 - 3,066,405 Equipment - - - 660,423 6,481,011 7,141,434 Construction in Progress - - - 169,982 (4,732,553) (3,015,686) 169,982 (7,748,239) - - - 2,267,122 3,465,325 5,732,447 Less Accumulated Depreciation Total Noncurrent Assets Total Assets $ 8,627,642 $ (1,011,050) $ 7,616,592 $ 4,181,873 $ 4,476,375 $ 8,658,248 $ $ $ 61,865 $ 134,933 $ 4,012 $ 138,945 15,778 22,317 3,467 25,784 5,828 Current Liabilities Payable from Current Assets Accounts Payable Accrued Payroll 65,877 19,245 (4,012) (3,467) Current Portion-Accrued Compensated Absences Unearned Revenue Deferred Revenues - - - 49,052 139,671 - 139,671 69,169 - - 54,880 69,169 - Total Current Liabilities Payable from Current Assets Total Current Liabilities 224,793 (7,479) 217,314 275,471 13,307 288,778 224,793 (7,479) 217,314 275,471 13,307 288,778 126,175 Noncurrent Liabilities - - - 117,202 8,973 - - - 117,202 8,973 126,175 217,314 392,673 22,280 414,953 Net Investment in Capital Assets 2,267,122 3,465,324 5,732,446 Unrestricted Total Net Position 1,522,078 988,771 2,510,849 $ 3,789,200 $ 4,454,095 $ 8,243,295 Accrued Compensated Absences Total Noncurrent Liabilities Total Liabilities Fund Balance Total Liabilities and Fund Balance 224,793 (7,479) 8,402,849 (1,003,571) 7,399,278 $ 8,627,642 $ (1,011,050) $ 7,616,592 Enterprise Funds Net Position M. Deficits in Fund Equity At June 30, 2013, no funds, as shown in the basic financial statements, were in a deficit position. The Workers Compensation Internal Service Fund, as shown in the Combining Statement of Net Position in Other Supplementary Information, has a deficit balance of $213,705 at June 30, 2013. The City intends to adjust its internal charges in future fiscal years to eliminate this deficit. 52 City of Yuma, Arizona NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2013 III. 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, 2013. 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. 53 54 REQUIRED SUPPLEMENTARY INFORMATION 55 Schedule of Funding Progress Public Safety Personnel Retirement System POL ICE 2010 2011 2012 FIRE 2010 2011 2012 Actual Value of Plan Assets Actuarial Accrued Liability Funding Liability (Excess) $ 41,763,616 43,968,517 43,985,939 $ 58,600,342 64,818,702 71,320,513 $ 16,836,726 20,850,185 27,334,574 71.3% 67.8% 61.7% 29,389,749 30,253,905 30,455,972 48,361,082 52,542,833 57,516,428 18,971,333 22,288,928 27,060,456 60.8% 57.6% 53.0% Funded Ratio Note: 2012 is the most recent actuarial valuation report av ailable. 56 Annual Covered Payroll $ Unfunded Liability as Percentage of Payroll 9,412,636 9,350,250 9,175,414 178.9% 223.0% 297.9% 5,913,555 5,973,174 6,560,746 320.8% 373.2% 412.5% City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 Animal Licenses Total Licenses Intergovernmental Sales Tax - State State Revenue Sharing Auto Lieu Tax Other Governmental Charges Total Intergovernmental Charges for Services: Building Inspection Fees Developer Charges Recreation Fees Police Services Fire Ambulance 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 Budget Original Final $ 11,166,915 $ 11,166,915 Actual Amounts $ 18,555,914 Variance with Final Budget Positive (Negative) $ 7,388,999 9,514,752 325,000 18,709,449 242,000 3,002,000 31,793,201 9,514,752 325,000 18,709,449 242,000 3,002,000 31,793,201 9,143,721 351,550 19,248,864 252,413 3,043,054 32,039,602 (371,031) 26,550 539,415 10,413 41,054 246,401 305,000 35,000 748,400 12,000 105,000 1,205,400 305,000 35,000 748,400 12,000 105,000 1,205,400 261,323 32,955 1,334,051 10,364 84,543 1,723,236 (43,677) (2,045) 585,651 (1,636) (20,457) 517,836 7,500,000 9,505,425 2,700,000 50,000 19,755,425 7,500,000 9,505,425 2,700,000 50,000 19,755,425 7,600,328 9,506,288 2,948,529 37,974 20,093,119 100,328 863 248,529 (12,026) 337,694 275,100 525,655 515,000 1,000,000 35,000 2,350,755 275,100 525,655 515,000 1,000,000 35,000 2,350,755 412,580 4,440 478,911 617,079 3,830,022 47,616 5,390,648 137,480 4,440 (46,744) 102,079 2,830,022 12,616 3,039,893 1,480,000 1,480,000 1,480,000 1,480,000 1,526,176 1,526,176 100,000 155,300 255,300 100,000 155,300 255,300 14,717 156,749 171,466 1,000 142,000 143,000 56,983,081 557,323 68,707,319 1,000 142,000 143,000 56,983,081 557,323 68,707,319 See accompanying notes to this schedule 57 46,176 46,176 (85,283) 1,449 (83,834) 22,177 21,177 224,809 82,809 246,986 103,986 61,191,233 4,208,152 503,084 (54,239) 80,250,231 11,542,912 Continued on next page City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 Budget Original Charges to Appropriations (outflows): General Government: Mayor and Council Elections City Administrator Strategic Communications Neighborhood Services Economic Development Facilities Maintenance General Government City Clerk 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 Expenditures Public Safety: Police Administration - Field Operations Police Animal Control Police Support Services Police Communication Center Police 911 Administration Fire Administration Fire Training Fire Suppression Fire Suppression - Ambulance Community Risk Reduction Facilities Maintenance Fire Special Operations Municipal Court Total Public Safety Operating Expenditures Capital Outlay Total Public Safety Expenditures Final Actual Amounts Variance with Final Budget Positive (Negative) 231,030 120,000 523,146 647,081 719,291 343,906 858,212 1,700,518 234,703 1,109,791 226,152 329,607 962,599 108,187 2,621,894 425,086 883,403 (2,882,833) 231,030 100,000 523,146 591,581 719,291 343,906 879,112 1,689,598 254,703 1,104,091 231,852 332,037 973,709 108,187 2,604,214 426,636 900,783 (2,882,833) 236,958 43,779 569,090 496,328 661,100 326,718 906,151 1,543,585 284,824 971,800 236,353 306,372 831,152 111,861 2,622,588 402,084 853,916 (2,754,090) (5,928) 56,221 (45,944) 95,253 58,191 17,188 (27,039) 146,013 (30,121) 132,291 (4,501) 25,665 142,557 (3,674) (18,374) 24,552 46,867 (128,743) 9,161,773 61,400 9,223,173 9,131,043 113,030 9,244,073 8,650,569 81,242 8,731,811 480,474 31,788 512,262 16,567,491 699,995 2,299,662 1,908,031 35,013 887,212 417,901 8,694,890 1,801,061 410,113 1,151,541 42,591 1,498,855 36,414,356 15,000 16,547,295 699,995 2,298,031 1,908,031 35,013 887,212 417,901 8,776,273 1,801,061 297,579 1,134,440 42,591 1,498,855 36,344,277 75,079 16,760,579 633,888 1,896,107 1,900,464 22,544 831,191 438,249 9,426,089 2,900,230 284,255 1,011,575 22,548 1,426,860 37,554,579 59,012 36,429,356 36,419,356 See accompanying notes to this schedule 58 (213,284) 66,107 401,924 7,567 12,469 56,021 (20,348) (649,816) (1,099,169) 13,324 122,865 20,043 71,995 (1,210,302) 16,067 37,613,591 (1,194,235) Continued on next page City of Yuma, Arizona Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 Facilities Maintenance Intragovernmental Charges Total Parks, Recreation and Culture Operating Expenditures Capital Outlay Total Parks, Recreation and Culture 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) 528,619 4,241,176 160,656 586,230 72,196 197,032 217,583 419,412 75,424 1,284,360 - 528,619 4,241,176 160,656 587,330 72,196 202,232 217,583 418,312 75,424 1,273,460 - 537,544 4,228,899 142,559 587,218 55,914 209,080 235,235 315,345 72,837 1,210,319 (128,743) (8,925) 12,277 18,097 112 16,282 (6,848) (17,652) 102,967 2,587 63,141 128,743 7,782,688 11,317 7,794,005 7,776,988 6,117 7,783,105 7,466,207 16,504 7,482,711 310,781 (10,387) 300,394 452,022 417,151 2,280,550 388,581 452,022 417,151 2,310,550 388,581 437,767 387,191 2,166,886 374,177 14,255 29,960 143,664 14,404 3,538,304 30,000 3,568,304 - 3,366,021 - 202,283 - 3,568,304 56,897,121 117,717 57,014,838 4,462,813 61,477,651 3,568,304 56,820,612 194,226 57,014,838 4,462,813 61,477,651 3,366,021 57,037,376 156,758 57,194,134 3,241,211 60,435,345 202,283 (216,764) 37,468 (179,296) 1,221,602 1,042,306 7,229,668 $ 19,814,886 7,229,668 $ $ 12,585,218 Concluded See accompanying notes to this schedule 59 City of Yuma, Arizona Budgetary Comparison Schedule City Road Tax Fund For the Year Ended June 30, 2013 Budgetary Fund Balance, July 1 Resources (inflows) Taxes Special Road Sales Tax Use of Money and Property Rent Interest Charges For Services Developer Charges Miscellaneous Other Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Public Safety Traffic Signals, Signs, and Striping Streets Engineering Street Maintenance Pathways and Trails Right-Of-Way Management Capital Outlay Capital Projects Parks, Recreation and Culture Streets Environmental, Health and Safety Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 3,042,920 $ 3,049,488 Actual Amounts $ 4,571,437 Variance with Final Budget Positive (Negative) $ 1,521,949 269,666 9,353,130 9,353,130 9,622,796 114,140 15,000 114,140 15,000 419,567 10,588 - - 345 345 - - 7,080 7,080 305,427 (4,412) 9,482,270 12,525,190 9,482,270 12,531,758 10,060,376 14,631,813 578,106 2,100,055 734,509 731,510 625,746 105,764 1,202,366 826,845 244,468 32,500 161,000 1,204,166 826,845 244,468 32,500 162,199 1,174,185 645,102 201,779 133,720 121,988 124,854 1,982,262 530,000 124,854 1,974,934 537,328 26,146 581,790 141,245 5,838,804 4,808,908 10,647,712 5,838,804 4,808,908 10,647,712 3,651,701 4,810,470 8,462,171 $ 1,877,478 $ 1,884,046 $ 6,169,642 60 29,981 181,743 42,689 (101,220) 40,211 98,708 1,393,144 396,083 2,187,103 (1,562) 2,185,541 $ 4,285,596 City of Yuma, Arizona NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2012 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 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 two funds. The General Fund expenditures exceeded appropriations by $179,296 due to this being the first full year of providing ambulance service. There were sufficient ambulance revenues received to offset this budget deficit. The Equipment Maintenance Fund had expenditures exceed appropriations by $193,250 after providing unplanned repair services during the year with attendant auto parts purchases. In each case, the fund was not significantly impaired by the excess expenditures. 61 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. Highway Users Revenue. To account for the state-shared gasoline taxes designated for maintenance and construction of roadways. Grants Fund. The Grant Fund accounts for all of the federal and state grants provided to the City with the exception of the grants received for the Yuma Regional Communication System (recorded in Radio Communications Enterprise Fund), the Community Development Block Grant and the Economic Development grant. Community Redevelopment Fund This fund accounts for the financial activities of Community Development Block Grant and the Economic Development Grant. 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 Art Center, 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. Capital Projects Fund The Capital Projects Fund is used to account for and report financial resources to be used for acquisition or construction of capital facilities and other capital assets (other than those financed by General, Special Revenue, or Proprietary Funds. 65 City of Yuma, Arizona Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 Assets Cash and Investments Receivables (Net of Allowances for Uncollectibles): Accounts Receivable Intergovernmental Delinquent Property Taxes Accrued Interest Inventory, at cost Prepaid Items Total Assets Special Revenue Public Highway Safety Users Tax Revenue Local Transportation Assistance $ 143 $ 143 $ 384,272 $ 2,598 234,825 521 622,216 Grants $ 133,896 $ 279,071 $ 10,350 544,146 171 688,563 20,563 814,096 93 $ 1,113,823 207,275 32,777 24,890 264,942 $ Liabilities and Fund Balances Liabilities: Accounts Payable $ Accrued Payroll, Taxes and Benefits Payable Due to Other Funds Deferred Revenues Total Liabilities - Fund Balances: Nonspendable: Inventory Prepaid Items Restricted for: General government projects Streets Public safety equipment and facilities Recreation facilities Committed to: General government projects Public safety equipment and facilities Parks, recreation and cultural facilities Streets Sanitation facilities Public works projects Total Fund Balances Total Liabilities and Fund Balance $ 8,481 1,128 9,609 $ 41,225 24,207 748,992 299,399 1,113,823 - - - - - 612,607 - 423,621 - - 143 143 612,607 423,621 - 143 66 $ $ 622,216 $ 688,563 $ 1,113,823 Special Revenue Capital Projects Total Nonmajor Governmental Funds 505 $ 18,906,074 $ 25,740,436 790 28,431 3,859 33,585 128,456 654,822 5,243 $ 19,694,595 1,713,772 2,396,312 3,859 9,491 16,030 450 $ 29,880,350 1,303 1,300 27,123 3,859 33,585 $ $ Community Redevelopment Two Percent Tax Yuma Mall Maintenance $ $ 6,036,475 $ $ $ $ - 1,005,116 119,992 1,125,108 545,899 3,463 16,030 450 $ 6,602,317 $ 15,227 11,076 100,909 997,896 1,125,108 $ $ 61,550 23,571 128,925 214,046 96,173 4,113,519 4,209,692 - 16,030 450 - - 6,371,791 - 158,995 4,798,026 3,117,407 158,996 158,995 5,221,647 3,730,014 6,530,787 - 6,388,271 - 352,174 1,158,621 2,081,401 2,875,919 529,345 254,019 15,484,903 352,174 1,158,621 2,081,401 2,876,062 529,345 254,019 22,909,545 $ 19,694,595 $ 29,880,350 1,125,108 $ 6,602,317 $ 33,585 - 431,234 94,059 877,024 5,568,488 6,970,805 67 16,030 450 City of Yuma, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2013 Special Revenue Public Highway Safety User Tax Revenue 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 Streets Parks, Recreation and Culture Environmental Health and Protection Community Design and Development Capital Outlay Capital Projects General Government Public Safety Streets - $ 3,847,810 4,268 5,419 3,857,497 - 824,466 - - - - Parks, Recreation and Culture Environmental, Health and Safety Debt Service: Interest and Fiscal Agent Fees Total Expenditures Revenues Over/(Under) Expenditures $ 1,056,109 5,862,202 745 80,030 5,942,977 Grants $ 3,376,975 12 69,476 15,766 3,462,229 426,469 5,507,234 - 747,468 1,338,604 70,906 85,038 19,167 - 298,318 330,514 - - - 617,143 - - - 40,109 - 1,880,575 6,018,741 3,462,229 - 1,976,922 (75,764) - Other Financing Sources/(Uses): Transfers In Transfers Out Total Other Financing Sources/(Uses) - (2,942,551) (233,847) - - (2,942,551) (233,847) - Net Changes in Fund Balances - (965,629) (309,611) - 733,232 - 143 Fund Balances, Beginning Fund Balances, Ending $ 143 68 1,578,236 $ 612,607 $ 423,621 $ - Special Revenue Community Redevelopment Two Percent Tax $ $ 4,652,121 487,862 4,689 37,780 5,182,452 1,207,608 18,442 24,699 1,250,749 - $ $ 240,044 1,414,576 14,324 628,265 2,297,209 $ 8,619,334 10,686,829 1,902,438 42,480 69,476 798,784 22,119,341 - 758,772 2,589,539 5,507,234 3,497,694 - - - 104,205 - 218,487 - - 1,767,554 1,386,623 - 70,182 3,601 - 89,809 3,690,160 3,399,767 159,991 3,690,160 4,020,511 - 425,229 - - 1,023,303 18,000 1,448,532 58,109 3,937,104 218,487 3,300 8,224,339 3,300 24,992,224 1,245,348 (92,259) (5,927,130) (2,872,883) 1,250,749 - 1,250,749 - 11,304 3,426,788 119,403 6,825 126,228 Capital Projects Total Nonmajor Governmental Funds - - $ Yuma Mall Maintenance - (607,790) 22,073 - (1,057,574) 22,073 (4,841,762) - (607,790) 22,073 (1,057,574) (4,819,689) - 637,558 (70,186) (6,984,704) (7,692,572) - 5,750,713 70,186 22,469,607 30,602,117 - $ 6,388,271 - $15,484,903 $ 22,909,545 $ 69 City of Yuma, Arizona Budgetary Comparison Schedule Debt Service Fund For the Year Ended June 30, 2013 Budgetary Fund Balance, July 1 Resources (inflows): Special Assessments: Principal Payments Use of Money and Property: Interest Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Debt Service: Bond Principal Bond Interest Fiscal Agent Fees Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Final $ 540,201 $ 540,201 Actual Amounts $ 543,089 Variance with Final Budget Positive (Negative) $ 2,888 1,215,000 1,215,000 1,134,000 (81,000) 153,120 1,368,120 12,238,199 14,146,520 153,120 1,368,120 12,238,199 14,146,520 174,605 1,308,605 12,246,869 14,098,563 21,485 (59,515) 8,670 (47,957) 8,400,000 5,172,422 13,572,422 13,572,422 8,400,000 5,172,422 13,572,422 13,572,422 8,350,000 5,195,248 10,200 13,555,448 13,555,448 50,000 (22,826) (10,200) 16,974 16,974 $ 574,098 $ $ 543,115 70 574,098 $ (30,983) City of Yuma, Arizona Budgetary Comparison Schedule Capital Projects Fund For the Year Ended June 30, 2013 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Arizona Department of Transportation Charges for Services Developer Charges Use of Money and Property Interest Miscellaneous Total Revenues Amounts Available for Appropriation Budget Original Final $ 9,446,169 $ 9,440,601 - Charges to Appropriations (outflows): Capital Outlay: General Government Public Safety Streets Parks, Recreation and Culture Environmental Health and Safety Debt Service: Fiscal Agent Fees Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ - Actual Amounts $ 22,469,607 Variance with Final Budget Positive (Negative) $ 13,029,006 240,044 240,044 204,812 1,209,764 1,209,764 1,414,576 29,750 17,120,057 18,359,571 27,805,740 29,750 17,120,057 18,359,571 27,800,172 14,324 628,265 2,297,209 24,766,816 (15,426) (16,491,792) (16,062,362) (3,033,356) 6,650,300 5,368,200 11,222,076 1,046,112 1,639,294 5,396,096 5,893,484 9,835,394 3,161,214 1,639,794 89,809 3,690,160 3,399,767 1,023,303 18,000 5,306,287 2,203,324 6,435,627 2,137,911 1,621,794 25,925,982 25,925,982 25,925,982 25,925,982 3,300 8,224,339 1,057,574 9,281,913 (3,300) 17,701,643 (1,057,574) 16,644,069 1,874,190 $ 15,484,903 1,879,758 71 $ $ 13,610,713 City of Yuma, Arizona Budgetary Comparison Schedule Local Transportation Assistance Special Revenue Fund For the Year Ended June 30, 2013 Budget Original Final Budgetary Fund Balance, July 1 $ Amounts Available for Appropriation $ 1,045 Charges to Appropriations (outflows): Current: Total Charges to Appropriations Budgetary Fund Balance, June 30 1,045 $ $ 1,045 $ 1,045 Actual Amounts Variance with Final Budget Positive (Negative) - 1,045 72 $ 1,045 $ 143 (902) 143 (902) - - 143 $ (902) City of Yuma, Arizona Budgetary Comparison Schedule Public Safety Tax Special Revenue Fund For the Year Ended June 30, 2013 Original $ 1,532,090 Final $ 1,532,090 Actual Amounts $ 1,578,236 3,739,977 3,739,977 3,847,810 107,833 4,000 4,000 4,268 268 3,743,977 5,276,067 3,743,977 5,276,067 5,419 3,857,497 5,435,733 5,419 113,520 159,666 173,178 479,520 111,500 1,262,477 174,323 524,520 111,500 1,216,332 201,186 523,534 99,746 1,056,109 (26,863) 986 11,754 160,223 50,000 2,076,675 50,000 2,076,675 1,880,575 50,000 196,100 2,938,679 5,015,354 2,938,679 5,015,354 2,942,551 4,823,126 (3,872) 192,228 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes Public Safety Sales Tax Use of Money and Property Interest Miscellaneous Other Total Revenues Variance with Final Budget Positive (Negative) $ 46,146 Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Public Safety Police Support Services Fire Support Services Facility Maintenance Capital Outlay Capital Projects: Public Safety Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ 260,713 73 $ 260,713 $ 612,607 $ 351,894 City of Yuma, Arizona Budgetary Comparison Schedule Highway User Revenue Fund For the Year Ended June 30, 2013 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental State Gasoline Tax Use of Money and Property Interest Miscellaneous Other Total Revenues Budget Original $ 296,791 $ 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 Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ Variance with Final Budget Positive (Negative) $ 436,441 Final 296,791 Actual Amounts $ 733,232 6,375,161 6,375,161 5,862,202 (512,959) 2,400 2,400 745 (1,655) 25,000 6,402,561 6,699,352 25,000 6,402,561 6,699,352 80,030 5,942,977 6,676,209 55,030 (459,584) (23,143) 486,481 486,481 426,469 2,804,041 753,223 456,874 293,180 349,400 1,149,266 2,754,041 898,623 456,874 293,180 349,400 1,053,866 2,655,764 881,065 418,743 335,211 333,504 882,947 98,277 17,558 38,131 (42,031) 15,896 170,919 78,566 6,371,031 108,165 6,479,196 78,566 6,371,031 108,165 6,479,196 85,038 6,018,741 233,847 6,252,588 (6,472) 352,290 (125,682) 226,608 220,156 74 $ 220,156 $ 423,621 60,012 $ 203,465 City of Yuma, Arizona Budgetary Comparison Schedule Grants Fund For the Year Ended June 30, 2013 Budget Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government State Government Budget Authority Reserve Use of Money and Property Interest Contributions/Donations Other - Rebates 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 Streets Parks, Recreation and Culture Environmental Health and Protection Total Expenditures Total Charges to Appropriations Budgetary Fund Balance, June 30 $ $ Final - Actual Amounts $ - Variance with Final Budget Positive (Negative) $ - 2,139,398 111,325 13,092,263 2,462,898 571,325 11,347,093 3,003,642 373,333 - 540,744 (197,992) (11,347,093) 84,917 15,427,903 15,427,903 84,917 14,466,233 14,466,233 12 69,476 15,766 3,462,229 3,462,229 12 (15,441) 15,766 (11,004,004) (11,004,004) 1,087,585 1,201,333 68,594 20,520 - 1,108,105 1,452,458 66,525 323,500 462,069 424,096 747,468 1,338,604 70,906 19,167 298,318 330,514 360,637 113,854 (4,381) 304,333 163,751 93,582 8,293,000 1,724,524 474,739 2,600,000 15,470,295 15,470,295 6,547,830 2,876,396 474,739 2,600,000 16,335,718 16,335,718 617,143 40,109 3,462,229 3,462,229 (42,392) 75 $ (1,869,485) $ - 6,547,830 2,259,253 474,739 2,559,891 12,873,489 12,873,489 $ 1,869,485 City of Yuma, Arizona Budgetary Comparison Schedule Community Redevelopment Fund For the Year Ended June 30, 2013 Budget Original Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Federal Government Use of Money and Property Rental Receipts Miscellaneous Loan Repayments Other $ - Final $ 1,834,420 - Actual Amounts $ - 1,834,420 - Variance with Final Budget Positive (Negative) $ - 1,207,608 - (626,812) 18,442 18,442 Total Revenues Amounts Available for Appropriation 31,355 1,865,775 1,865,775 31,355 1,865,775 1,865,775 18,206 6,493 1,250,749 1,250,749 18,206 (24,862) (615,026) (615,026) Charges to Appropriations (outflows): Current: Community Design and Development Capital Outlay Total Expenditures Total Charges to Appropriations 1,841,192 1,841,192 1,841,192 1,836,824 4,368 1,841,192 1,841,192 1,250,749 1,250,749 1,250,749 586,075 4,368 590,443 590,443 Budgetary Fund Balance, June 30 $ 24,583 76 $ 24,583 $ - $ (24,583) City of Yuma, Arizona Budgetary Comparison Schedule Two Percent Tax Special Revenue Fund For the Year Ended June 30, 2013 Original $ 2,900,704 Final $ 3,095,704 Actual Amounts $ 5,750,713 4,474,740 4,474,740 4,652,121 405,000 81,000 14,000 405,000 81,000 14,000 362,143 125,719 4,689 20 4,974,760 7,875,464 20 4,974,760 8,070,464 37,780 5,182,452 10,933,165 54,338 835,000 949,592 489,055 582,352 83,507 624,546 61,304 10,600 54,338 835,000 949,592 489,055 582,352 82,907 624,546 61,304 11,200 54,845 820,418 905,976 459,270 561,358 79,557 545,364 11,304 - 430,986 1,006,096 85,000 5,212,376 767,323 5,979,699 378,891 1,080,024 63,167 5,212,376 767,323 5,979,699 70,182 425,229 3,601 3,937,104 607,790 4,544,894 $ 1,895,765 $ 2,090,765 $ 6,388,271 Budget Budgetary Fund Balance, July 1 Resources (inflows): Taxes Two PercentTax Use of Money and Property Rents and Concessions Recreation Fees Interest Miscellaneous Other Total Revenues Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Parks, Recreation and Culture Administration Outside Agencies Civic and Convention Center Baseball Complex Art Center Heritage Events Facilities Maintenance General Government Capital Outlay Capital Projects: General Government Parks, Recreation and Culture Streets Total Expenditures Transfers Out Total Charges to Appropriations Budgetary Fund Balance, June 30 77 Variance with Final Budget Positive (Negative) $ 2,655,009 177,381 (42,857) 44,719 (9,311) 37,760 207,692 2,862,701 (507) 14,582 43,616 29,785 20,994 3,350 79,182 50,000 11,200 308,709 654,795 59,566 1,275,272 159,533 1,434,805 $ 4,297,506 City of Yuma, Arizona Budgetary Comparison Schedule Yuma Mall Maintenance Special Revenue Fund For the Year Ended June 30, 2013 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Mall Assessments Property Tax - Delinquent 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 Original Final $ $ - Actual Amounts $ 70,186 Variance with Final Budget Positive (Negative) $ 70,186 106,546 - 106,546 - 99,987 19,416 (6,559) 19,416 3,500 110,046 65,930 175,976 3,500 110,046 65,930 175,976 6,825 126,228 22,073 218,487 3,325 16,182 (43,857) 42,511 220,052 220,052 220,052 220,052 220,052 220,052 218,487 218,487 218,487 1,565 1,565 1,565 $ (44,076) 78 $ (44,076) $ - $ 44,076 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. Solid Waste To record the financial activities of the city-owned and operated residential garbage collection service. Radio Communication. Communication Fund. To record the financial activities of the Radio Desert Hills Golf Course To account for the financial activity of the operation of the Desert Hills and Desert Hills Par 3 Municipal Golf Courses. 79 City of Yuma, Arizona Combining Statement of Net Position Nonmajor Proprietary Funds June 30, 2013 Solid Waste 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 Enterprise Funds Radio Desert Hills Communication Golf Course $ 650,739 689,854 1,554 404 389 1,342,940 50,738 331,523 382,261 (254,196) $ 198,201 11,281 1,084,992 428 98,002 22,848 1,415,752 $ Total Nonmajor Proprietary Funds 465,814 $ 1,314,754 5,647 1,183 269 68,584 541,497 706,782 1,087,729 1,101 166,586 23,237 3,300,189 6,891,400 6,891,400 (4,557,461) 3,102,865 3,290,356 328,900 6,722,121 (4,690,911) 3,102,865 3,341,094 7,551,823 13,995,782 (9,502,568) 128,065 128,065 1,471,005 2,333,939 2,333,939 3,749,691 2,031,210 2,031,210 2,572,707 4,493,214 4,493,214 7,793,403 69,958 11,219 360,059 4,831 33,243 15,072 463,260 31,122 Liabilities Current Liabilities: Accounts Payable Accrued Payroll and Related Taxes Current Portion-Accrued Compensated Absences Unearned Revenue Total Current Liabilities Payable from Current Assets 22,749 - 14,483 - 27,188 66,651 64,420 66,651 103,926 379,373 142,154 625,453 Noncurrent Liabilities: Accrued Compensated Absences Total Long-Term Liabilities Total Liabilities 66,192 66,192 170,118 21,374 21,374 400,747 55,137 55,137 197,291 142,703 142,703 768,156 128,065 1,172,822 2,333,939 1,015,005 2,031,210 344,206 4,493,214 2,532,033 $ 1,300,887 $ 3,348,944 $ 2,375,416 $ 7,025,247 Net Position Net investment in capital assets Unrestricted (deficit) Total Net Position 80 City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Proprietary Funds For the Year Ended June 30, 2013 Enterprise Funds Radio Communication Solid Waste Operating Revenues: Intergovernmental Charges for Services 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 3,301,166 3,301,166 3,154,456 32,016 3,186,472 Operating Income/(Loss) Change in Net Position 96,126 Net Position-beginning 1,204,761 $ 1,300,887 81 1,922 13,482 15,404 (1,447,487) 104,706 - 255,206 (25,767) (209,023) 4,454,095 3,348,944 (1,462,891) (313,729) (1,105,151) (1,218,048) 2,584,439 $ 2,375,416 1,693,625 5,014,525 1,169,777 257,207 246,035 478,117 8,859,286 8,567,849 1,754,328 10,322,177 243 6,590 6,833 150,500 - $ $ (320,562) (1,255,651) (25,767) 1,169,777 257,207 246,035 478,117 2,151,136 2,291,161 180,537 2,471,698 663 709 1,372 121,893 Transfers In Transfers Out $ (1,257,023) 1,016 6,183 7,199 Income/(Loss) before Transfers 1,693,625 1,713,359 3,406,984 Desert Hills Golf Course 3,122,232 1,541,775 4,664,007 114,694 Non-Operating Revenues/(Expenses): Interest Miscellaneous Revenues Net Non-Operating Revenues Net Position-ending $ Total Nonmajor Proprietary Funds 8,243,295 $ 7,025,247 City of Yuma, Arizona Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended June 30, 2013 Solid Waste 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 $ 3,114,441 (790,752) (2,394,512) 6,182 (64,641) Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Cash Paid to Other Funds Net Cash Provided (Used for) Noncapital Financing Activities Cash Flow from Capital and Related Financing Acitivities: Acquisition and Construction of Assets Net Cash Used for Capital and Related Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Provided by Investing Activities Enterprise Funds Radio Desert Hills Communication Golf Course $ 3,799,960 (339,307) (3,108,388) 709 352,974 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 Due from Other Gov't Units Increase(decrease) in Unearned Revenue Other Operating Activity Revenue Total Adjustments Net Cash Provided by Operating Activities 150,500 - 104,706 - 255,206 (25,767) (25,767) 150,500 104,706 229,439 - (410,389) (104,706) (515,095) - (410,389) (104,706) (515,095) 680 680 268 268 1,837 1,837 (89,519) 93,765 (126,954) 740,258 104,436 592,768 1,437,462 465,814 $ 1,314,754 650,739 $ $ 114,694 $ (1,257,023) $ (320,562) $ (1,462,891) 1,541,775 392,976 (98,002) (22,848) (227,035) 22,422 709 1,609,997 180,537 4,277 (2,794) 139 (9,920) 13,880 (566) 1,197 6,590 193,340 1,754,328 210,527 (100,796) (23,098) (262,482) 31,411 (566) 1,197 13,481 1,624,002 32,016 (186,726) (389) (25,527) (4,891) 6,182 (179,335) (64,641) $ 198,201 352,974 $ (122,708) $ $ 82 $ 9,070,444 (2,101,079) (6,821,735) 13,481 161,111 (25,767) 889 889 Net Increase/(Decrease) in Cash and Cash Equivalents $ 2,156,043 (971,020) (1,318,835) 6,590 (127,222) Total Nonmajor Proprietary Funds $ (127,222) $ 161,111 City of Yuma, Arizona Budgetary Comparison Schedule Water Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 Facilities Maintenance 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 $ 18,911,391 2,231,100 210,000 269,700 Final 18,911,391 2,231,100 210,000 269,700 $ 18,678,730 2,357,286 196,847 340,614 75,000 700,000 41,000 40,000 22,478,191 22,478,191 75,000 700,000 41,000 40,000 22,478,191 22,478,191 110,603 1,694,408 10,180 122,837 23,511,505 23,511,505 35,603 994,408 (30,820) 82,837 1,033,314 1,033,314 2,127,848 6,978,460 1,632,052 1,279,019 49,552 286,523 128,968 2,123,896 6,884,412 1,619,435 1,281,019 49,552 286,523 128,968 2,218,651 5,780,599 1,524,860 981,095 31,202 206,791 65,533 (94,755) 1,103,813 94,575 299,924 18,350 79,732 63,435 42,010 6,906,300 150,627 6,906,300 109,333 1,227,113 41,294 5,679,187 5,023,209 5,281,055 29,734,996 62,358 29,797,354 5,023,209 5,281,055 29,734,996 62,358 29,797,354 5,023,221 5,316,589 22,484,987 70,344 22,555,331 (12) (35,534) 7,250,009 (7,986) 7,242,023 (7,319,163) Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Principal Retirement Amortization of Debt Issuance Costs Amortization of Bond Premium Depreciation and Amortization Change in Net Assets $ Actual Amounts Variance with Final Budget Positive (Negative) $ (7,319,163) 956,174 $ $ 109,333 1,227,113 5,023,221 141,855 (20,464) (7,344,314) $ 92,918 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 (232,661) 126,186 (13,153) 70,914 8,275,337 City of Yuma, Arizona Budgetary Comparison Schedule Wastewater Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 Facilities Maintenance 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 $ 11,967,100 910,000 1,496,400 12,600 Final 11,967,100 910,000 1,496,400 12,600 $ 11,956,911 1,059,295 1,608,854 27,512 3,000,000 115,000 15,000 33,400 14,880 17,564,380 17,564,380 3,000,000 115,000 15,000 33,400 14,880 17,564,380 17,564,380 4,113,507 149,003 15,000 13,416 58,365 19,001,863 19,001,863 1,113,507 34,003 (19,984) 43,485 1,437,483 1,437,483 1,361,009 6,685,495 442,617 1,073,252 305,768 123,459 1,361,009 6,685,495 442,617 1,075,952 305,768 123,459 1,288,559 5,680,073 376,541 949,943 136,167 62,695 72,450 1,005,422 66,076 126,009 169,601 60,764 57,622 2,799,000 54,922 2,799,000 9,914 537,983 45,008 2,261,017 3,195,503 2,150,921 18,194,646 32,877 18,227,523 3,195,503 2,150,921 18,194,646 32,877 18,227,523 3,195,503 2,151,266 14,388,644 36,928 14,425,572 (663,143) Reconciliation to Change in Net Assets: Capital Outlay Capital Projects Principal Retirement Amortization of Debt Issuance Costs Depreciation and Amortization Change in Net Assets $ Actual Amounts Variance with Final Budget Positive (Negative) $ (663,143) 4,576,291 $ (345) 3,806,002 (4,051) 3,801,951 $ 9,914 537,983 3,195,503 36,259 (5,597,400) $ 2,758,550 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 (10,189) 149,295 112,454 14,912 5,239,434 City of Yuma, Arizona Budgetary Comparison Schedule Solid Waste Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 Original Final Actual Amounts $ 3,093,500 1,400 $ 3,093,500 1,400 $ 3,301,166 1,016 3,500 3,098,400 3,098,400 3,500 3,098,400 3,098,400 6,183 3,308,365 3,308,365 2,784,766 345,568 68,131 3,198,465 26,379 3,224,844 2,784,766 345,568 68,131 3,198,465 26,379 3,224,844 2,785,027 314,847 54,582 3,154,456 25,767 3,180,223 Budget Resources (inflows): Charges for Service Collection Fees Interest Miscellaneous Other Total Revenues 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 Excess/(Deficiency) of Resources Over Charges to Appropriations $ (126,444) $ (126,444) 128,142 Reconciliation to Change in Net Assets: Depreciation and Amortization Variance with Final Budget Positive (Negative) $ 207,666 (384) 2,683 209,965 209,965 (261) 30,721 13,549 44,009 612 44,621 $ 254,586 (32,016) Change in Net Assets $ 96,126 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 Radio Communication Enterprise Fund For the Year Ended June 30, 2013 Budget Original Resources (inflows): Charges for Service Radio Equipment Fees Intergovernmental Federal Government State Government Use of Money and Property Interest Miscellaneous Other Total Revenues Transfers In Amounts Available for Appropriation Charges to Appropriations (outflows): Current: Environmental Health Radio Communications Public Safety Capital Outlay Total Expenditures Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations Actual Amounts Final Variance with Final Budget Positive (Negative) 428,120 428,120 1,713,359 1,285,239 3,178,262 - 4,139,932 - 1,618,566 75,059 (2,521,366) 75,059 - - 663 663 3,606,382 136,950 3,743,332 4,568,052 136,950 4,705,002 709 3,408,356 150,500 3,558,856 709 (1,159,696) 13,550 (1,146,146) 819,131 678,923 2,723,697 4,221,751 4,221,751 840,631 933,423 2,733,846 4,507,900 4,507,900 1,761,514 1,360,718 410,391 3,532,623 3,532,623 (920,883) (427,295) 2,323,455 975,277 975,277 $ (478,419) Reconciliation to Change in Net Assets: Capital Outlay Depreciation and Amortization Change in Net Assets $ 197,102 $ 26,233 410,391 (1,541,775) $ (1,105,151) 86 $ (170,869) City of Yuma, Arizona Budgetary Comparison Schedule Desert Hills Golf Course Enterprise Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 $ 1,216,500 331,550 216,500 522,700 500 200 2,287,950 210,000 2,497,950 $ 1,216,500 331,550 216,500 522,700 500 200 2,287,950 210,000 2,497,950 1,231,693 581,672 619,655 1,251,693 601,672 579,655 1,138,704 621,694 530,763 112,989 (20,022) 48,892 210,000 2,643,020 210,000 2,643,020 104,706 2,395,867 105,294 247,153 2,643,020 2,643,020 2,395,867 247,153 Charges to Appropriations (outflows): Current: Maintenance Concession Restaurant Capital Outlay: Capital Projects Total Expenditures Total Charges to Appropriations Excess/(Deficiency) of Resources Over Charges to Appropriations Actual Amounts Variance with Final Budget Positive (Negative) $ (145,070) $ $ (145,070) 1,169,777 257,207 246,035 478,117 243 6,590 2,157,969 104,706 2,262,675 (133,192) Reconciliation to Change in Net Assets: Capital Projects Depreciation and Amortization $ $ (46,723) (74,343) 29,535 (44,583) (257) 6,390 (129,981) (105,294) (235,275) 11,878 104,706 (180,537) Change in Net Assets $ (209,023) 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. 87 88 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. 89 City of Yuma, Arizona Combining Statement of Net Position Internal Service Funds June 30, 2013 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: Current Liabilities: Accounts Payable Accrued Payroll, Taxes and Benefits Payable Current Portion-Accrued Compensated Absences Estimated Claims and Judgements Due to Other Funds Total Current Liabilities Payable Noncurrent Liabilities: Accrued Compensated Absences Total Long-Term Liabilities Total Liabilities Net Position Net investment in capital assets Unrestricted (deficit) Total Net Position Equipment Equipment Replacement Maintenance $ 15,787,938 9,049 15,796,987 27,499,278 (21,022,530) 6,476,748 22,273,735 $ 82 9,967 8 29 744,126 120 754,332 219,610 19,251 222,733 237,499 (199,097) 499,996 1,254,328 Insurance Reserve $ Employee Benefits Workers Trust Compensation 769,150 40,563 256 545,641 1,355,610 $ 276,936 168 277,104 $ 1,807,255 1,235 91,959 1,900,449 1,355,610 277,104 1,900,449 93 31,417 371,166 - 14,859 16,814 288,699 34,143 - 13,606 1,253 - 16,814 27,889 481,161 811,355 3,763 65,546 104,705 - 16,814 60,499 60,499 871,854 2,078 2,078 106,783 - 6,476,748 15,780,173 $ 22,256,921 499,996 (117,522) $ 382,474 90 Totals $ 18,641,361 51,765 8 9,502 744,126 637,720 20,084,482 219,610 19,251 222,733 27,736,777 (21,221,627) 6,976,744 27,061,226 93 969,373 1,113,364 2,114,154 31,652 1,034,919 1,594,525 3,047,121 93 2,114,154 62,577 62,577 3,109,698 1,248,827 277,011 (213,705) 6,976,744 16,974,784 $ 1,248,827 $ 277,011 $ (213,705) $ 23,951,528 City of Yuma, Arizona Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2013 Operating Revenues: Charges For Services Contributions City Equipment Rental Miscellaneous Total Operating Revenues Operating Expenses: Claims Incurred Premiums to Insurance Carriers Administration Depreciation Total Operating Expenses Operating Income/(Loss) Equipment Maintenance Insurance Reserve $ $ 3,701,030 $ 2,446,069 1,359,535 162 1,359,697 13,681 3,714,711 100,352 2,546,421 7,719 7,719 870,296 5,714 876,010 870,296 1,359,535 127,628 8,504,558 12,582 1,488,957 1,501,539 (141,842) 3,826,139 23,345 3,849,484 (134,773) 256,757 554,868 862,543 1,674,168 872,253 30,540 6,943 37,483 (29,764) 649,123 191,042 27,378 867,543 8,467 905,880 776,450 4,735,585 1,512,302 7,930,217 574,341 6,690 6,690 21,368 118,184 139,552 713,893 - Non-Operating Revenue/(Expenses): Interest Gain on the Sale of Assets Total Non-Operating Revenues 13,586 118,184 131,770 - Income/(Loss) before Transfers (10,072) (134,760) Transfers Out - Change in Net Position Net Position, Beginning Net Position, Ending Employee Benefits Trust Equipment Replacement 13 13 22,266,993 $ 22,256,921 $ - $ 227 227 - Totals $ 6,147,099 873,105 (29,537) 15,157 - - - (135,510) 873,105 (29,537) 15,157 517,984 375,722 306,548 (228,862) 23,238,385 382,474 $ 1,248,827 $ 277,011 (213,705) $ 23,951,528 (750) (10,072) 852 852 $ Workers Compensation 91 $ (750) 713,143 City of Yuma, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2013 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 $ 1,359,535 (12,420) $ 3,713,312 (1,040,032) (2,640,416) - 1,347,115 Cash Flows from Noncapital Financing Activities: Cash Received from Other Funds Cash Paid to Other Funds Net Cash Flows Provided by/(Used for) Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Sale of Capital Assets Payments for Capital Acquisitions Net Cash Flows Used for Capital and Related Financing Activities Cash Flows from Investing Activities: Receipt of Interest Net Cash Flows Provided by Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2012 Cash and Cash Equivalents, June 30, 2013 Equipment Maintenance 32,864 Insurance Reserve $ 2,555,161 (74,312.00) (1,641,644) Employee Benefits Trust Workers Compensation $ $ 7,719 (37,498) - 877,153 (1,176,663) 839,205 (29,779) (299,510) Totals $ 8,512,880 (1,114,344) (2,677,914) (2,830,727) 1,889,895 - (750) (70,651) - - 843,363 - 772,712 (750) - (750) (70,651) - 843,363 771,962 118,183 (1,445,239) (32,015) - - - 118,183 (1,477,254) (1,327,056) (32,015) - - - (1,359,071) 596 596 769,150 237 237 (29,542) 6,690 6,690 550,543 20,470 20,470 1,323,256 - 306,478 1,256,712 17,318,105 $ 18,641,361 12,964 12,964 33,023 (17) (17) 82 15,754,915 - $ 15,787,938 $ 82 $ $ (134,773) $ 769,150 $ 276,936 $ 1,807,255 $ 872,253 $ $ 8,467 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 (141,842) 1,488,957 - 23,345 (93,057) (34,607) 4,895 277,663 (10,602) 8,739 (24,774) (10,082) - 1,488,957 167,637 (6,931) (33,048) $ 1,347,115 $ 92 32,864 $ 839,205 (29,764) (15) (15) $ (29,779) $ $ 574,341 1,143 (22,575) (7,842) - 1,512,302 (83,175) (34,607) (42,454) 259,724 (10,602) (278,703) (307,977) (285,634) 1,315,554 (299,510) $ 1,889,895 City of Yuma, Arizona Budgetary Comparison Schedule Equipment Replacement Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 Budget Original Resources (inflows): Charges for Services 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 $ Actual Amounts Final 1,364,582 55,000 1,419,582 1,419,582 $ 12,582 3,250,179 3,262,761 3,262,761 1,364,582 55,000 1,419,582 1,419,582 12,582 3,230,179 3,242,761 3,242,761 $ (1,843,179) Reconciliation to Change in Net Position: Capital Outlay Gain on Sale of Assets Depreciation and Amortization Change in Net Position $ (1,823,179) $ 1,359,535 13,586 162 1,373,283 1,373,283 Variance with Final Budget Positive (Negative) $ 12,582 1,448,762 1,461,344 1,461,344 (88,061) (5,047) (41,414) 162 (46,299) (46,299) 1,781,417 1,781,417 1,781,417 $ 1,735,118 1,448,762 118,184 (1,488,957) $ (10,072) 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 City of Yuma, Arizona Budgetary Comparison Schedule Equipment Maintenance Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 Actual Amounts Budget Original Resources (inflows): Charges for Services Miscellaneous Interest Total Revenues $ Amounts Available for Appropriation Charges to Appropriations (outflows): Current Administration Capital Outlay $ 3,629,754 35,000 3,664,754 900 3,665,654 Total Expenditures Transfers Out Total Charges to Appropriations Excess of Resources Over Charges to Appropriations 3,700,098 1,000 3,701,098 3,701,098 Final $ 35,444 Reconciliation to Change in Net Position: Capital Outlay Depreciation and Amortization Change in Net Position 3,700,098 1,000 3,701,098 3,701,098 $ 3,629,754 35,000 3,664,754 900 3,665,654 $ 3,701,030 13,681 13 3,714,724 3,714,724 Variance with Final Budget Positive (Negative) $ 3,826,139 32,015 3,858,154 750 3,858,904 35,444 (144,180) $ 932 13,681 (987) 13,626 13,626 (196,385) 2,985 (193,400) 150 (193,250) $ (179,624) 32,015 (23,345) (135,510) 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. 94 City of Yuma, Arizona Budgetary Comparison Schedule Insurance Reserve Internal Service Fund (Non-GAAP Budgetary Basis) For the Year Ended June 30, 2013 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 Total Charges to Appropriations Excess of Resources Over Charges to Appropriations 2,446,069 5,000 15,000 500 2,466,569 2,466,569 Final $ 585,116 369,000 862,121 1,816,237 1,816,237 $ 650,332 Reconciliation to Change in Net Position: Change in Net Position Actual Amounts 2,446,069 5,000 15,000 500 2,466,569 2,466,569 $ 585,116 369,000 862,121 1,816,237 1,816,237 $ 650,332 2,446,069 100,352 852 2,547,273 2,547,273 Variance with Final Budget Positive (Negative) $ 554,868 256,757 862,543 1,674,168 1,674,168 $ 873,105 $ 873,105 (5,000) 85,352 352 80,704 80,704 30,248 112,243 (422) 142,069 142,069 $ 222,773 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. 95 96 STATISTICAL SECTION 97 98 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 100 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 108 These schedules contain information to help the reader assess the City's most significant local revenue source - sales tax. Debt Capacity 110 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 116 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 119 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. 99 City of Yuma, Arizona Net Position by Component Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2008 2009 100 2004 2005 2006 2007 2010 2011 2012 2013 Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activites net position $ 95,005 55,748 $ 150,753 $ 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 $ 196,837 15,773 44,357 $ 256,967 $ 209,377 24,835 36,851 $ 271,063 $ 208,428 22,456 39,115 $ 269,999 Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activites net position $ 86,266 31,537 $ 117,803 $ 105,944 27,122 $ 133,066 $ 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 $ 166,782 5,556 31,699 $ 204,037 $ 164,295 7,357 37,842 $ 209,494 $ 163,246 9,009 43,362 $ 215,617 Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position $ 181,271 87,284 $ 268,556 $ 217,212 330 84,829 $ 302,371 $ 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 $ 363,619 21,329 76,056 $ 461,004 $ 373,672 32,192 74,693 $ 480,557 $ 371,674 31,465 82,477 $ 485,616 City of Yuma, Arizona Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) 2004 101 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 Solid Waste Radio Communications Golf Courses Total business-type activites expenses Total primary government expenses Program Revenues Governmental activities: Charges for Services Building Inspection Fees Developer Charges Ambulance Services Police Services Other 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 Radio Communications Solid Waste Charges Green Fees and Concessions Other Charges Capital Grants and Contributions Total business-type activities program revenues Total primary government program revenues $ $ $ $ 7,059 26,988 8,654 9,475 2,994 5,551 2,972 63,693 10,884 7,341 2,493 20,718 84,411 926 365 488 7,374 3,290 3,703 16,146 10,481 7,613 1,992 1,023 8,923 30,032 46,178 2005 $ $ $ $ 2006 11,456 8,750 2,514 22,720 91,534 13,010 10,403 2,641 26,054 $ 105,572 14,562 11,538 2,676 28,776 $ 116,383 18,389 13,270 2,889 34,548 $ 133,972 $ 1,023 3,995 605 8,768 3,568 1,747 19,706 $ $ $ $ $ 14,797 9,081 2,191 1,393 11,025 38,487 61,211 $ 10,919 36,067 13,384 15,400 2,098 6,791 2,948 87,607 985 4,517 805 8,407 2,661 5,341 22,716 17,522 10,387 2,189 1,390 11,249 42,737 65,453 $ Fiscal Year 2009 $ 1,019 3,520 698 8,968 2,840 5,679 22,724 $ 2008 7,117 30,707 9,061 9,841 3,608 5,438 3,042 68,814 12,297 8,000 1,994 1,221 11,657 35,169 54,875 9,124 33,057 12,326 12,173 3,410 6,529 2,899 79,518 2007 $ 11,875 38,511 18,943 14,353 4,604 5,807 5,331 99,424 710 6,657 764 8,916 2,294 5,000 24,341 21,027 13,126 2,140 1,181 8,874 46,348 70,689 $ $ 11,559 41,080 15,966 16,282 4,969 5,486 6,592 101,934 20,754 13,859 2,819 37,432 139,366 390 4,911 865 7,607 1,807 4,783 20,363 22,463 13,372 2,027 1,098 9,924 48,884 69,247 2010 $ $ $ $ 10,563 39,224 13,969 13,863 4,905 4,981 6,291 93,796 20,277 13,673 2,496 36,446 130,242 384 2,674 821 7,491 3,659 5,944 20,973 21,651 13,699 1,964 1,041 3,969 42,324 63,297 2011 $ $ $ $ 9,684 40,232 14,536 13,804 1,538 5,007 5,803 90,604 20,555 13,882 2,902 2,377 39,716 130,320 2012 $ $ 12,534 41,735 12,741 14,226 804 4,521 5,461 92,022 23,353 16,191 2,948 2,403 44,895 136,917 307 1,589 477 567 5,775 3,965 19,145 31,825 2013 $ 10,345 43,051 14,980 12,787 156 5,134 5,153 91,606 23,227 16,165 3,213 4,663 2,469 49,737 $ 141,343 333 4,369 471 6,936 4,968 3,245 20,322 $ $ 413 1,419 3,830 617 6,082 3,980 1,744 18,085 21,598 14,854 3,147 1,890 961 7,391 49,841 70,163 20,710 21,233 14,485 14,625 1,714 3,266 3,301 1,919 2,152 775 562 9,071 7,776 50,226 51,363 $ 82,051 $ 69,448 Continued on next page City of Yuma, Arizona Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) 2004 Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense $ (47,547) 9,314 $ (38,233) 102 General Revenues and Other Changes in Net Position Governmental activities: Property taxes $ 5,953 Sales taxes 28,529 Franchise taxes 1,936 Shared revenues 24,021 Grants and contributions not restricted to specific programs 5,198 Unrestricted investment earnings 292 Gain from sale of fixed assets 920 Transfers (473) Total governmental activities 66,376 Business-type activities: Investment earnings 125 Transfers 473 Total business-type activities 598 Total primary government $ 66,974 Change in Net Position Governmental activities Business-type activities Total primary government $ $ 18,830 9,912 28,742 2005 $ $ $ $ $ $ 2006 (49,109) 12,449 (36,659) $ 6,076 32,795 2,105 25,462 $ $ (56,794) 12,434 (44,361) 6,832 36,557 3,116 28,226 Fiscal Year 2009 2007 2008 $ (64,891) 13,961 $ (50,930) $ (75,083) 11,800 $ (63,283) $ $ $ $ 7,430 39,616 2,678 30,558 8,250 39,478 2,893 32,788 $ 2010 (81,571) 11,452 (70,119) $ 8,856 36,857 3,013 31,330 $ $ 2011 (72,823) 5,878 (66,945) $ 9,498 34,177 3,010 28,239 $ $ 2012 (70,282) 10,125 (60,157) $ 9,986 34,644 3,002 25,379 $ $ 2013 (60,197) 5,331 (54,866) $ 10,099 36,304 3,059 23,936 $ $ (73,521) 1,626 (71,895) 9,549 37,624 3,043 25,917 1,673 1,370 307 (2,124) 67,664 7,826 2,190 348 (4) 85,091 115 4,097 (363) 84,131 2,600 4,842 (96) 90,755 3,895 2,872 95 86,918 5,776 1,139 95 81,934 5,929 1,001 259 126 80,326 930 (37) 74,291 796 (17) 76,912 691 2,124 2,815 70,479 798 4 802 85,893 1,016 363 1,379 85,510 1,916 96 2,012 92,767 1,045 (95) 950 87,868 217 (95) 122 82,056 130 (126) 4 80,330 89 37 126 74,417 26 17 43 76,955 18,553 15,264 33,817 $ $ $ 28,296 13,236 41,532 $ $ $ 19,243 15,338 34,581 $ $ $ 15,865 13,620 29,485 $ $ $ 5,347 12,402 17,749 $ $ $ 9,112 6,000 15,112 $ $ $ 10,044 10,128 20,172 $ $ $ 14,095 5,457 19,552 $ $ 3,391 1,669 $ 5,060 Concluded City of Yuma, Arizona Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2004 General Fund Reserved Unreserved Nonspendable Committed Assigned Unassigned Total General Fund 103 All other Governmental funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Nonspendable Restricted Committed Assigned Total all other governmental funds $ 101 17,436 - 2005 $ 296 19,704 - 2006 $ 614 21,125 - Fiscal Year 2008 2009 2007 $ 309 19,893 - $ 277 18,608 - $ 262 15,493 - 2010 $ 156 18,796 - 2011 $ 103 2,383 88 19,060 2012 $ 169 1,864 868 15,655 2013 $ 187 935 18,693 $ 17,537 $ 20,000 $ 21,739 $ 20,202 $ 18,885 $ 15,755 $ 18,952 $ 21,634 $ 18,556 $ 19,815 $ $ $ $ $ $ $ $ $ $ 63 339 535 513 543 552 553 - - - 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 - 141 2,388 34,441 2,037 - - 18 24,834 11,235 633 19 22,456 7,252 - $ 20,390 $ 18,479 $ 26,418 $ 14,331 $ 77,066 $ 54,777 $ 39,668 $ 39,007 $ 36,720 $ 29,727 Notes: For FY 2011 GASB Statement No 54 was implemented. See Note I-E, Sec 9 of the Notes to Basic Financial Statements. City of Yuma, Arizona Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2005 2006 2007 2008 2009 2004 2010 2011 2012 2013 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 $ 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 99,040 $ 49,686 2,845 37,916 8,804 1,039 679 4,374 78 624 106,045 $ 50,503 2,068 39,238 11,599 1,143 914 5,358 65 633 111,521 $ 48,569 1,363 37,064 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 $ 47,606 1,292 32,510 7,055 1,484 1,039 1,665 77 2,442 95,170 $ 49,450 1,288 33,173 4,160 1,550 1,089 1,365 47 493 92,615 $ 50,282 1,723 30,780 7,293 1,526 1,134 819 69 1,053 94,679 5,409 25,751 4,767 7,828 3,062 5,429 19,655 5,033 29,296 4,899 8,534 3,014 5,344 21,151 7,185 31,862 5,626 9,727 3,365 6,422 22,688 7,641 35,014 7,155 11,022 3,551 6,698 41,449 9,723 37,874 8,913 11,547 4,757 5,726 51,148 9,575 37,908 9,716 11,857 4,781 5,370 35,734 7,740 35,234 8,195 10,619 4,480 4,870 25,249 6,969 36,285 8,186 10,171 1,556 4,899 13,659 9,451 38,475 7,945 10,688 733 4,458 12,666 9,409 40,769 7,662 10,964 104 5,134 11,792 3,825 2,962 3,447 3,032 4,209 2,890 3,837 2,939 8,312 5,885 7,075 6,646 6,315 6,764 7,680 5,858 8,010 5,516 8,350 5,209 Total expenditures 78,688 83,750 93,974 119,306 143,885 128,662 109,466 95,263 97,942 99,393 Excess of revenues over (under) expenditures (1,922) 3,423 5,066 (13,261) (32,364) (25,514) (12,647) (93) (5,327) (4,714) 7,280 920 21,609 (22,082) 307 20,219 (23,398) 3,875 742 25,016 (25,021) 38,410 (38,773) 93,686 29,685 (29,589) 16,213 (16,118) 30,017 (29,378) 14,564 (14,468) 14,675 (14,548) 14,522 (14,559) 12,772 (12,789) 7,727 (2,872) 4,612 (37) (17) Expenditures 104 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 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) Net change in fund balances Debt service as a percentage of noncapital expenditures $ 5,805 11.5% $ 551 10.4% $ 9,678 10.0% (363) $ 13,624 8.7% 93,782 95 $ 61,418 $ 25,419 15.3% 14.8% 735 $ (11,912) 15.5% 127 $ 34 16.6% $ 5,364 15.9% $ (4,731) 15.5% 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 105 Fiscal Year General Sales Tax Property Tax 2004 $ 5,857,825 $ 14,849,984 $ 7,423,730 $ 2,968,482 $ 3,044,645 $ 1,935,952 $ 242,000 $ 88,411 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 2011 9,740,940 17,635,454 8,816,228 3,525,292 4,425,556 3,001,939 242,000 218,925 47,606,334 2012 9,944,517 18,470,938 9,233,899 3,692,304 4,665,296 3,058,634 242,000 142,151 49,449,739 2013 9,495,271 19,248,864 9,622,796 3,847,810 4,652,121 3,043,054 252,413 119,403 50,281,732 Total $ 36,411,029 City of Yuma, Arizona Governmental Funds Intergovernmental Shared Revenues Last Ten Fiscal Years Grants and Others* Total $ 431,754 $ 7,019,763 $ 31,041,144 106 Fiscal Year Sales Tax 2004 $ 6,535,654 $ 7,002,250 $ 2,852,832 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 2011 6,856,996 8,692,400 3,250,436 6,503,532 75,764 7,131,364 32,510,492 2012 7,272,049 7,854,670 3,108,562 5,700,428 - 9,237,197 33,172,906 2013 7,600,328 9,506,288 2,948,529 5,862,202 - 4,862,601 30,779,948 Auto In-Lieu Highway Users Local Transportion Assistance Revenue Sharing $ 7,198,891 *See 'Intergovernmental Revenues - Grants and Others' for detail information. City of Yuma, Arizona Intergovernmental Revenues - Grants and Other Last Ten Fiscal Years State of Arizona Federal Fiscal Year Justice 2004 $ 3,462,972 2005 1,233,650 2006 Interior $ 575,124 Housing/Urban Development Other HUD (CDBG) $ Other Parks 107 1,349,178 $ 405,814 $ 896,311 $ 87,359 465,209 594,924 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 2011 271,296 2012 2013 Commerce Transportation $ $ - $ 151,489 Local Government $ 60,457 $ 7,019,763 291,084 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 1,167,310 - 5,336,400 741,740 1,059,135 255,855 4,165,343 373,294 635,092 786,120 87,292 2,501,119 5,125 - 459,826 726,689 1,207,608 1,855,100 10,400 296,263 - - 1,840 - - 533,859 - 637,996 2,893,392 1,588,327 240,044 66,670 - Total - 5,607 - 31,059 Other 5,230,199 931 8,744,867 - 7,131,364 367,436 9,237,197 - 4,862,601 City of Yuma, Arizona Taxable Sales by Category Last Ten Fiscal Years (amounts expressed in thousands) 2004 Mining Construction $ - 2005 $ 2006 1 $ Fiscal Years 2008 2009 2007 3 $ 25 $ 155 $ 2010 6 $ 2011 82 $ 2012 6 $ 2013 44 $ 20 166,117 228,801 235,643 254,740 249,315 207,592 118,996 121,132 190,490 190,260 28,969 53,176 60,054 57,632 59,931 48,964 44,764 50,676 38,167 50,539 121,936 145,454 173,224 186,420 207,693 206,089 207,112 197,764 194,646 197,687 23,625 29,635 35,498 34,732 22,480 33,785 35,334 42,580 38,720 36,578 Retail Trade 823,785 925,936 1,024,886 1,088,053 1,089,001 1,001,579 962,699 973,426 987,416 1,036,092 Restaurants and Bars 110,633 123,683 143,594 157,866 162,560 162,404 157,024 160,742 168,358 172,056 Finance, Insurance and Real Estate 69,235 97,875 117,161 143,725 132,593 115,857 116,046 123,876 129,208 129,208 Hotels and Other Lodging 30,785 34,930 37,333 39,360 33,642 36,093 29,502 29,507 33,368 32,054 Services 66,721 44,921 48,639 58,050 52,012 50,858 43,356 45,208 45,804 51,404 Arts, Entertainment, Government and All Others Not Specified 43,029 31,963 32,542 46,423 38,503 32,743 31,055 18,434 20,670 22,871 $ 1,484,835 $ 1,716,375 $ 1,908,577 $ 2,067,026 $ 2,047,885 $ 1,895,970 $ 1,745,970 $ 1,763,351 $ 1,846,891 $ 1,918,769 Manufacturing Transportation, Communications, and Utilities Wholesale Trade 108 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 109 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% 2011 1.70% 2.00% 1.10% 6.60% 2012 1.70% 2.00% 1.10% 6.60% 2013 1.70% 2.00% 1.10% 5.60% Source: Arizona Department of Revenue City of Yuma, Arizona Ratio of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year General Obligation Bonds 2004 $ Governmental Activities Municipal Property Special Corporation Assessment Bonds Bonds Long-term Contracts Payable 110 - $ 63,440,000 $ 7,280,000 $ 2,515,000 2005 - 60,420,000 7,280,000 2006 - 57,765,000 2007 - 2008 Business-Type Activities Municipal Property General Long-term Corporation Obligation Contracts Bonds Bonds Payable $ Total Primary Government Percentage of Personal Income* Per Capita* - $ 10,505,000 $ 33,790,746 $ 117,530,746 3.30% 1,723,000 - 9,575,000 61,072,113 140,070,113 3.67% 773 10,475,000 924,000 - 8,585,000 74,110,111 151,859,111 3.73% 810 55,035,000 9,765,000 117,000 - 7,535,000 84,154,117 156,606,117 3.63% 822 - 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 6.69% 1,708 2011 - 125,665,000 5,745,000 - 117,025,000 2,765,000 68,249,441 319,449,441 6.03% 1,623 2012 - 119,055,000 4,625,000 - 113,765,000 1,420,000 63,921,846 302,786,846 5.56% 1,507 2013 - 112,165,000 3,460,000 - 110,340,000 59,443,795 285,408,795 NA - Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. *See the Schedule of Demographic and Economic Statistics on page 116 for personal income and population data. $ 667 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 2004 83,330 2005 86,070 2006 Assessed Value 322,623,524 General Bonded Debt per Capita 111 3.3% 126 329,526,546 9,575,000 2.9% 111 88,775 367,376,807 8,585,000 2.3% 97 2007 92,160 468,531,273 7,535,000 1.6% 82 2008 93,212 572,280,942 6,420,000 1.1% 69 2009 93,719 699,754,765 5,250,000 0.8% 56 2010 90,660 Revised 94,536 747,149,498 4,040,000 0.5% 45 733,033,525 2,765,000 0.4% 29 1,420,000 0.2% 15 0.0% - 2012 96,176 * 666,827,282 2013 95,429 * 625,801,724 Source: $ Ratio of General Bonded Debt to Assessed Value 10,505,000 2011 $ General Obligation Debt (Business-type Activities) - Yuma County Assessor U.S. Department of Commerce * Estimated projections by US Dept of Commerce NOTE: General obligation debt issued for utility system improvements is paid through user charges. No property taxes are levied for this purpose. City of Yuma, Arizona Computation of Direct and Overlapping Debt June 30, 2013 Debt Jurisdiction City of Yuma Outstanding Allocable to City of Yuma Percent Amount $ 285,408,795 100.00% $ 285,408,795 7,500,000 50.90% 3,817,500 Yuma County Library District 45,540,000 50.90% 23,179,860 Yuma County Community College District 62,590,000 50.90% 31,858,310 Yuma Union High School District No. 70 22,135,000 55.00% 12,174,250 Yuma School District No. 1 3,000,000 57.00% 1,710,000 Yuma School District No. 13 11,245,000 65.00% 7,309,250 Yuma County 112 Total Overlapping Debt Source: Yuma County Finance Department Yuma County Assessor's Office Arizona Western College (School district percent estimated) Note: Valuation applicable percentage obtained from Yuma County Treasurer's Office $ 80,049,170 City of Yuma, Arizona Legal Debt Margin Information June 30, 2013 (amounts expressed in thousands) 2004 Fiscal Year 2009 2005 2006 2007 2008 $ 65,905 19,772 $ 73,475 22,043 $ 572,281 114,456 $ 114,456 34,337 10,505 - 9,575 - 8,585 - 7,535 - Legal debt margin Water, Sewer, Lights, Parks (20%) $ 54,950 All Others (6%) 19,357 $ 57,320 19,772 $ 67,890 22,043 $ 86,171 28,112 Debt Limit Water, Sewer, Lights, Parks (20%) $ 64,525 All Others (6%) 19,357 Total net debt applicable to limit Water, Sewer, Lights, Parks (20%) All Others (6%) 113 Total net debt applicable to the limit as a percentage of debt limit Water, Sewer, Lights, Parks (20%) All Others (6%) 16.28% 0.00% 14.53% 0.00% 11.68% 0.00% 1.32% 0.00% 2010 2011 2012 2013 $ 139,951 41,985 $ 149,430 44,829 $ 146,607 43,982 $ 133,365 40,010 $ 125,160 37,548 6,420 - 5,250 - 4,040 - 2,765 - 1,420 - $ 108,036 34,337 $ 134,701 41,985 $ 145,390 44,829 $ 143,842 - $ 131,945 40,010 5.61% 0.00% 3.75% 0.00% 2.70% 0.00% 1.89% 0.00% $ 125,160 37,548 1.06% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2013 General Obligation Bonds 2012 Tax Year Secondary Assessed Valuation Outstanding General Obligation Debt: Project 1997 Total General Obligation Debt $ 625,802 Water, Sewer, Lights, Parks (20%) All Others (6%) $ 125,160 $ $ 125,160 $ (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. 37,548 37,548 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 2010B Ref 2007 2007 1995A 1995B 2001B Series B Series D 2012-13 Pledged Taxes 2012-13 Net Revenue Total Taxes/Net Revenue 114 2013-14 Debt related to pledge: 2003 Ref 1995 Series A 2003 Ref 1995 Series B 2003 Series B 2007 Series B 2010 Series B Total Series A-B 2007 Series D (highest year) WIFA Loans (Parity Obligations) 2007 Series Utilities Total Debt Coverage Required Coverage Collective Coverage Total 2012-13 Taxes/Net Revenue Total 2013-14 Debt Coverage Required Coverage $ 54,745,101 54,745,101 $ $ 1,609,765 1,609,765 34.0 4.0 $ 50,897,291 50,897,291 $ $ 305,250 694,973 1,000,223 50.9 3.0 $ 50,897,291 50,897,291 $ $ 2,525,082 2,525,082 20.2 3.0 $ $ $ 50,897,291 50,897,291 2,295,770 2,295,770 22.2 3.0 $ $ $ 2007 Series Utilities 60,520,087 60,520,087 4,804,825 4,804,825 12.6 1.5 $ Total $ 1,609,765 305,250 694,973 2,295,770 2,525,082 7,430,840 4,804,825 $ 12,235,665 23,210,659 23,210,659 $ $ 6,681,932 8,989,138 15,671,070 1.5 1.2 $ 54,745,101 $ 50,897,291 $ 50,897,291 $ 50,897,291 $ 60,520,087 $ 23,210,659 $ $ $ $ 7,430,840 6.8 3.0 $ 12,235,665 4.9 3.0 $ 15,671,070 1.5 1.2 7,430,840 7.4 4.0 7,430,840 6.8 3.0 7,430,840 6.8 3.5 2003A, 2003B, 2007B, 2003B Refunding and 2010B Refunding Series: Bond covenants require that each series cover both its related debt and the collective debt for the succeeding year. For 2007D Series, coverage requirements are measured against the maximum annual debt service. 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 Last Ten Fiscal Years 115 Local Taxes Sales Tax (1%) Franchise Fee Intergovernmental Revenues: State Revenue Sharing State Sales Tax Auto In-Lieu Tax Emergency Services and Other Licenses: Business Licenses Liquor Licenses Fees for Services: Building Permits and Inspection Fees Recreation Fees Police Services and Other Public Safety Fees Use of Money and Property: Investment Income Fines, Forfeitures and Penalties: City Court Fines Total Series B Pledged Taxes Additional Series A Pledged Taxes City Public Safety Taxes (.2%) Total Series A Pledged Taxes Additional Series C Pledged Taxes City Special Taxes (2%) Fiscal Year 2008 2009 2004 2005 2006 2007 2010 2011 2012 2013 $ 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 $ 17,635,454 3,243,939 $ 18,470,938 3,058,634 $ 19,248,864 3,043,054 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 8,692,400 6,856,996 3,250,436 55,745 7,854,670 7,272,049 3,108,562 34,252 9,506,288 7,600,328 2,948,529 37,974 291,080 32,115 300,290 32,965 300,596 36,600 315,968 38,880 332,122 34,700 319,631 35,715 315,580 34,130 302,668 35,131 288,133 31,670 261,323 32,955 3,608,965 381,442 4,096,137 431,931 4,508,571 453,273 3,465,837 485,647 2,401,049 546,680 1,386,593 563,437 1,435,276 628,264 1,319,507 609,192 1,170,037 546,940 1,751,071 478,911 544,869 647,381 774,246 1,335,542 1,852,400 1,226,013 1,447,064 603,253 1,043,802 4,447,101 70,322 318,886 556,095 1,038,848 1,021,862 504,146 166,500 108,396 53,277 14,717 725,948 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 1,484,105 44,197,222 1,549,889 44,482,853 1,526,176 50,897,291 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 3,525,292 47,722,514 3,692,304 48,175,157 3,847,810 54,745,101 3,044,645 3,374,350 3,866,902 4,232,008 4,424,358 4,383,419 4,253,079 4,425,556 4,665,296 4,652,121 49,148,149 55,549,412 42,154,190 46,963,163 53,654,334 57,653,777 59,724,928 55,970,359 51,861,541 48,622,778 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 8,816,228 9,233,899 9,622,796 $ 53,013,450 $ 53,716,752 $ 60,520,087 Gross Excise Tax Pledged Revenues $ 52,546,402 $ 58,975,906 $ 67,012,276 $ 72,120,676 $ 74,056,847 $ 69,240,060 $ 64,081,420 $ 60,964,298 $ 62,074,352 $ 69,020,018 Total Series C Pledged Taxes Additional Series D Pledged Taxes City Road Tax (.5%) Total Series D 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 Per Capita Personal Income Unemployment Rate No. Value No. Value $ 141,020,407 685 $ 98,696,100 Commercial Residential 116 Year Population Personal Income 2003 170,604 $ 3,268,426 $19 17.00% 999 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 2010 195,751 4,994,489 26 26.30% 546 33,118,172 759 40,924,654 2011 196,830 5,300,165 27 27.10% 610 52,240,172 782 26,660,688 2012 200,870 5,441,761 27 28.40% 325 19,892,725 787 24,553,421 Note: Source: Unemployment rate and population presented represents the Yuma Metropolitan Statistical Area and it reflects revised inputs, reestimation, and new statewide controls through 2010. 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 Eight Fiscal Years Ago 2004 117 Employer Marine Corps Air Station U. S. Army Yuma Proving Ground Yuma Regional Medical Center Yuma School District #1 Yuma County United States Border Patrol Walmart Yuma Union High School District City of Yuma Quechan Paradise Casino Growers Company Salyer American Fresh Total 2012 Percentage of Total Employees Rank Employment 6,043 1,176 1,500 1,200 1,100 690 864 1,500 1,000 1 5 2 4 6 10 9 2 7 9.67% 1.88% 2.40% 1.92% 1.76% 1.10% 1.38% 2.40% 1.60% 24.11% Employees 6,825 2,185 1,967 1,500 1,400 1,000 1,000 950 876 850 Percentage of Total Rank Employment 1 2 3 4 5 6 * 7 * 8 9 * 10 10.75% 3.44% 3.10% 2.36% 2.21% 1.58% 1.58% 1.50% 1.38% 1.34% 29.23% Source: Greater Yuma Economic Development Corporation Note: Figures presented represent the Yuma Metropolitan Statistical Area. Data for 2013 is not available. Data from nine years prior as required for this table is not available. United States Border Patrol data not available for 2004. Walmart and Quechan Paradise Casino added in for 2010 due to Salyer and Growers dropping from list. *Estimated-data not reported City of Yuma, Arizona Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function General government 195 195 208 226 228 241 235 192 201 192 118 Public Safety Police Fire Streets Engineering Maintenance Solid Waste Parks and recreation Water Wastewater 229 105 237 105 252 110 267 122 269 122 266 122 267 133 239 129 249 131 258 125 25 48 13 129 55 41 30 50 15 128 59 45 32 52 15 136 64 48 37 51 16 141 73 52 44 47 16 145 75 52 44 56 17 133 76 47 41 56 17 133 80 51 33 46 13 116 73 49 32 46 13 116 73 49 32 46 13 116 76 52 Total 840 864 917 985 998 1,002 1,013 890 910 910 City of Yuma, Arizona Operating Indicators by Function Last Ten Fiscal Years 2004 2005 2006 2007 Fiscal Year 2008 2009 87,770 15,804 86,802 16,644 88,013 17,019 87,797 15,281 81,347 13,746 84,332 13,740 83,226 13,434 76,232 13,535 9,205 1,182 10,032 1,774 10,094 1,850 10,862 2,030 11,455 2,059 11,045 2,322 11,565 745 12,067 864 12,037 NA 12,664 1,399 19 24 19 9 22 11 2 15 10 24 27,781 33,003 33,965 34,938 34,919 33,996 33,288 32,638 32,177 32,010 5,519 3,285 3,122 3,247 3,160 2,673 2,519 2,554 2,327 2,551 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 28,984 65.0 8.4 29,009 65.0 8.3 27,396 65.0 8.1 12.3 15.6 15.6 15.6 15.6 15.6 15.6 15.6 15.6 15.6 2010 2011 2012 2013 Function 119 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. Due to a software conversion in 2013 the water connection data isn't fully verified NA NA 76,080 14,651 City of Yuma, Arizona Capital Asset Statistics by Function Last Ten Fiscal Years 2004 2005 2006 2007 Fiscal Year 2008 2009 2010 2011 2012 2013 Function 120 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) 1 123 5 1 127 6 1 134 6 1 143 6 1 150 6 1 163 6 1 164 6 1 163 6 1 198 6 2 198 6 300 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 49 395 5,750 50 420 5,753 50 421 5,764 79 10 10 12 13 13 13 13 13 11 11 553 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 9 607 79 4 9 9 607 79 4 9 9 607 79 4 9 9 437 2,600 448 2,850 470 3,000 493 3,150 501 3,267 501 3,400 507 3,438 520 3,450 525 3,573 525 3,646 266 275 290 310 320 320 342 340 341 350 Sources: Various city departm 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.