To Table of Contents City of Casa Grande, Arizona Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 To Table of Contents City of Casa Grande, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Prepared by the Finance Department Doug Sandstrom, Finance Director Julie Scherer, Supervising Accountant Gay Barnhart, Assistant To Table of Contents TABLE OF CONTENTS I. INTRODUCTORY SECTION Page Letter of Transmittal ............................................................................................................................... GFOA Certificate of Achievement ......................................................................................................... City of Casa Grande Officials ................................................................................................................ Organizational Chart .............................................................................................................................. v xi xii xiii II. FINANCIAL SECTION Independent Auditors’ Report .............................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (required supplementary information) ....... 4 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ................................................................................................................ Statement of Activities .................................................................................................................... 13 14 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet ............................................................................................................................. Reconciliation of the Balance Sheet to the Statement of Net Position ....................................... Statement of Revenues, Expenditures and Changes in Fund Balances ...................................... Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances Of Governmental Funds to the Statement of Activities .......................................................... Budgetary Comparison Statements – General Fund and major Special Revenue funds: General Fund .......................................................................................................................... Highway Users Special Revenue Fund .................................................................................. Grants and Subsidies Special Revenue Fund.......................................................................... 16 18 19 21 22 23 24 Proprietary Fund Financial Statements Statement of Net Position .......................................................................................................... Statement of Revenues, Expenses and Changes in Fund Net Position ...................................... Statement of Cash Flows............................................................................................................ 25 27 29 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position .......................................................................................... Statement of Changes in Fiduciary Net Position ....................................................................... i 33 34 TABLE OF CONTENTS (continued) Notes to Financial Statements: Note 1. Summary of Significant Accounting Policies................................................................ 2. Cash and Investments .................................................................................................... 3. Cash with Fiscal Agent/Restricted Investments ............................................................ 4. Receivables.................................................................................................................... 5. Direct Loans .................................................................................................................. 6. Property Taxes............................................................................................................... 7. Capital Assets ................................................................................................................ 8. Retirement and Pension Plans ....................................................................................... 9. Risk Management .......................................................................................................... 10. Capital Leases................................................................................................................ 11. Bond Debt ..................................................................................................................... 12. Excise Tax Revenue Obligations................................................................................... 13. WIFA Financing ............................................................................................................ 14. Changes in Long-Term Obligations .............................................................................. 15. Long-term Debt ............................................................................................................. 16. Landfill Closure and Postclosure Care Costs ................................................................ 17. Construction Commitments ........................................................................................... 18. Summary of Interfund Transactions .............................................................................. 19. Deficit in Fund Balance ................................................................................................. 20. Sales Tax Incentive Agreement ..................................................................................... 21. Restatement ................................................................................................................... 22. Fund Balance Details by Classification ......................................................................... Page 35 44 45 46 47 47 48 49 53 54 55 56 57 58 59 59 59 60 61 61 61 62 SUPPLEMENTARY INFORMATION Non-Major Governmental Funds Combining Balance Sheet................................................................................................... Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........... 63 66 Fiduciary Funds Combining Statement of Fiduciary Net Position ................................................................ Combining Statement of Changes in Assets and Liabilities – All Agency Funds .............. 69 70 OTHER SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule – General Fund Legal Level Budget Compliance .................. 71 Budgetary Comparison Schedules – Non-Major Governmental Funds System Development Special Revenue Fund ..................................................................... Municipal Airport Special Revenue Fund .......................................................................... Parks Development Special Revenue Fund ........................................................................ Community Arts Reserve Special Revenue Fund ............................................................... Redevelopment /Downtown Revitalization Special Revenue Fund ................................... Performance Institute/Promotion & Tourism Special Revenue Fund................................. Court Enhancement/Probationary Special Revenue Fund .................................................. Housing Application & Development Fees Special Revenue Funds .................................. Community Development Block Grant Special Revenue Fund ......................................... Self-Help Technical Assistance Special Revenue Fund ..................................................... Home/HUD Special Revenue Fund .................................................................................... 72 73 74 75 76 77 78 79 80 81 82 ii TABLE OF CONTENTS (continued) OTHER SUPPLEMENTARY INFORMATION (continued) Page Budgetary Comparison Schedules – Non-Major Governmental Funds (continued) Wildland Firefighting/Public Safety Special Revenue Fund .............................................. General Obligation/Bond Debt Service Fund ..................................................................... Recreation Debt Service Fund ............................................................................................ Capital Replacement Recreation/Development Fund ......................................................... Community Services Capital Project Fund ......................................................................... Transportation Capital Projects Fund ................................................................................. Public Safety Capital Projects Fund ................................................................................... Community Facilities Districts Capital Projects Fund ........................................................ Airport Improvement Capital Projects Fund....................................................................... 83 84 85 86 87 88 89 90 91 Schedule of Operations – Budget and Actual – Proprietary Funds Enterprise Funds: Copper Mountain Ranch.............................................................................................. Wastewater .................................................................................................................. Wastewater Development Fees ................................................................................... Sanitation ..................................................................................................................... Golf Course ................................................................................................................. 92 93 94 95 96 Capital Assets Used in the operation of Governmental Funds Schedule by Source ............................................................................................................ Schedule of Changes by Function and Activity .................................................................. 97 98 III. STATISTICAL SECTION Schedule Index .................................................................................................................................. Net Position by Component – Last Nine Fiscal Years ...................................................... Changes in Net Position, Governmental – Last Nine Fiscal Years ................................... Changes in Net Position, Business-type – Last Nine Fiscal Years .................................... Fund Balances, Governmental Funds – Last Ten Fiscal Years ......................................... Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ...................... Sales Tax Revenue by Industry – Last Six Fiscal Years ................................................... Direct and Overlapping Sales Tax Rates ........................................................................... Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .......................................... Ratio of General Bonded Debt Outstanding – Last Seven Fiscal Years............................ Direct and Overlapping Governmental Activities Debt .................................................... Legal Debt Margin Information ........................................................................................ Pledged-Revenue Coverage – Last Ten Fiscal Years ........................................................ Record of Real & Personal Property Tax Levied & Collected .......................................... Tax Rate Data .................................................................................................................... Estimated Net Secondary Assessed Valuation of Major Tax Payers ................................ Demographic and Economic Statistics – Last Ten Fiscal Years ....................................... iii 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Page 99 100 102 104 106 108 110 112 113 115 116 117 118 119 120 121 122 TABLE OF CONTENTS (continued) III. STATISTICAL SECTION (continued) Principal Employers – Current Year and Ten Years Ago ................................................. Authorized City Government Employee Positions by Function/Program – Last Ten Fiscal Years ................................................................. Operating Indicators by Function/Program – Last Ten Fiscal Years ............................... Capital Asset Statistics by Function/Program – Last Ten Fiscal Years............................. Schedule 17 Page 123 18 19 20 124 125 126 SINGLE AUDIT SECTION SINGLE AUDIT REPORTS Report on Internal Control over Financial Reporting and on compliance and other matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 127 Independent Auditors Report on Compliance with Requirements that could have a direct and material effect on each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133............................................................................................................................... 129 Schedule of Expenditures of Federal Awards ............................................................................... 131 Schedule of Findings and Questioned Costs ................................................................................. 134 iv To Table of Contents City of Casa Grande, Arizona February 21, 2014 Honorable Mayor, City Council, City Manager Citizens of Casa Grande, Arizona We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Casa Grande, Arizona (the City) for the fiscal year ended June 30, 2013. This report was prepared by the City’s Finance Department. This document represents management’s report to its governing body, constituents, legislative and oversight bodies, investors, and creditors. Copies of this report are sent to elected officials, management personnel, bond rating agencies, Nationally Recognized Municipal Securities Information Repositories, and other agencies with an expressed interest in the City’s financial matters. Copies of this financial report will be placed in the City libraries for use by the general public, and posted on the City’s web page at www.casagrandeaz.gov. Responsibility for the accuracy of the presented data and for the completeness and fairness of the presentations, including all disclosures, rests with the management of the City. The City established and maintains a comprehensive internal control framework designed to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of financial statements. We believe the data presented in this report is accurate in all material respects and fairly sets forth the financial position and results of operations of the City on both a city-wide and fund basis. We include all disclosures necessary to enable the reader to gain an understanding of the City’s financial activity and financial stability. These financial statements are prepared in accordance with generally accepted accounting principles in the United State of America (GAAP) for local governments as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA). Henry & Horne, L.L.P. audits the City of Casa Grande, Arizona’s financial statements. The independent audit report is presented as the first component in the financial section. The examination satisfies Article VI, Section 6, of the City Charter, which requires an annual audit of all accounts of the City by an independent certified public accountant. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Casa Grande, Arizona, for the fiscal year ended June 30, 2013 are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors report includes one finding regarding reconciliation of a cash account. The independent auditors concluded, based upon the audit, that a reasonable basis exists for rendering an unqualified opinion that the financial statements of the City of Casa Grande, Arizona for the fiscal year ended June 30, 2013, are fairly presented, in all material respects, in conformity with GAAP. (continued) v To Table of Contents Additionally, the City is required to have an independent audit (“Single Audit”) of federal financial assistance received by the City directly from federal agencies, or passed through to the City by the State of Arizona, or other governmental entities during the fiscal year. 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 government’s internal controls and compliance with legal requirements having a direct and material impact on major programs, with special emphasis on internal controls and compliance requirements involving the administration of major federal awards. The results of the City’s Single Audit for the fiscal year ended June 30, 2013, found no instances of material weakness in the internal control structure, or significant violations of applicable laws and regulations with respect to major programs. The reports from Henry & Horne L.L.P. are available in the City of Casa Grande, Arizona’s separately issued Single Audit Report. FINANCIAL CONTROLS Internal Controls As previously noted, the management of the City of Casa Grande is responsible for establishing and maintaining a system of internal control. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) safeguarding of assets against loss from unauthorized use or disposition, and 2) reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits requires estimates and judgments by management. The system of internal control is subject to periodic evaluation by management and is also considered by the independent auditors in connection with the annual audit of the City’s financial statements. All internal control evaluations occur within the above framework. The City’s internal accounting controls are considered to adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The single finding in the audit report recommends that procedures be put in place to reconcile all cash accounts properly. Current controls were not adequate to reconcile the account properly. Budgetary Controls The City of Casa Grande, like all cities in the State of Arizona, is subject to numerous budget and related legal requirements. Article IX, Section 20 (1) of the Arizona Constitution sets limits on the City’s legal budget capacity. The City operates under the Permanent Base Adjustment Alternative Expenditure Limit. The limit provides a cap on expenditures for the City. The base year is 1979-80 and the base amount is increased annually by population change and by the implicit price deflator. In May 2007, the voters approved a permanent base adjustment to the state imposed expenditure limit. This option allowed Casa Grande to adjust the state imposed expenditure base from the original 1979-80 base of $3,743,397 to $18,793,221. After adjustments for inflation and population growth, the City’s expenditure limitation for fiscal year 2012-2013 is $177,594,102. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated operating budget approved by the Mayor and Council. Activities of the general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds, and internal service funds are included in the annual appropriated budget. The legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is the total operating budget, as adopted by the City Council. The City additionally exercises management control and oversight of the budget at the department level within each fund. PROFILE OF THE CITY The City of Casa Grande was founded in 1879 and is named for the famous Hohokam Indian Ruins. Since its incorporation in 1915, Casa Grande has grown to be the largest community in western Pinal County. Casa Grande is located in central Arizona, approximately halfway between the State’s two largest metropolitan areas of Phoenix and Tucson, and is surrounded by three Indian Reservations. In addition, the City is located at the intersection of two (continued) vi To Table of Contents PROFILE OF THE CITY (continued) major interstate highways, one services the Los Angeles and San Diego markets, one to the Phoenix & Tucson markets. The City is a dynamic, involved city with a rural heritage and old-fashioned values. The economic base is a mix of retail trade, manufacturing and agriculture. The City of Casa Grande, chartered in December 1974, has a Council-Manager form of government consisting of the Mayor and six Council members. The Mayor is elected at-large for a two-year term and cannot serve more than four consecutive terms. Council members are elected to four-year terms. The City Council is vested with policy and legislative authority and is responsible for appointing the positions of City Manager, City Attorney and City Judge. The City Manager is responsible for carrying out the policies and ordinances of the City Council, as well as overseeing the day-to-day operations. The City of Casa Grande’s legal boundaries grew substantially over the past 5 years to just over 110 squares miles. The Voters approved the 2020 General Plan on November 3rd, 2009. The City’s population has doubled over the past thirteen years from 25,224 in 2000 to 50,296 in 2013. The City’s growth is attributed to affordable housing, proximity to labor opportunities in the metropolitan areas, and the rural quality of life offered to the residents. Most of the growth occurred prior to 2009. The City provides a full range of municipal services, including police and fire protection, maintenance of streets, recreational and cultural events, 2 libraries, planning and zoning, building inspection, code enforcement, wastewater, sanitation, airport, golf course and general administration. The City invests in its historic downtown with the administration of two downtown redevelopment districts. Financial Statement Structure The Comprehensive Annual Financial Report (CAFR) consists of three sections: Introductory, Financial, and Statistical. The Financial section begins with the Independent Auditors Report and is followed by the management’s discussion and analysis that provides summary information about the results of operations. The Comprehensive Annual Financial Report (CAFR) includes financial statements on both a government-wide and fund basis for the primary government as well as its component units. Component units are separate legal entities included in the reporting entity due to the significance of their financial or operational relationship with the City. Criteria used by the City for inclusion of activities in preparing its financial statements are in conformity with GASB Statement No. 14, The Financial Reporting Entity. Blended component units, although legally separate entities, are, in substance, part of the primary government’s operations and are included as part of the primary government. Accordingly, the financial reporting entity consists of the City and four blended component units, the Copper Mountain Ranch Community Facilities District, the Mission Royale Community Facilities District, the Villago Community Facilities District and the Post Ranch Community Facilities District as discussed further in Note 1 (A) on page 34 of the notes to the financial statements. ECONOMIC CONDITIONS AND OUTLOOK The information presented in the financial statement is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. The economy of Casa Grande is a diverse combination of agriculture, manufacturing, commercial and service activities, as well as a haven for retired individuals who spend winters in Arizona. The community serves as the provider of many goods and services to the rural areas surrounding the City, as well as several growing communities located in the area. This combination of diverse economic activities keeps the community from becoming overly dependent on any single segment of the economy. The Community has adopted a Strategic Plan for Community and Economic Development with the purpose of developing a process to successfully implement diverse type of businesses, attract new revenue, and expand/maintain the community revenues essential to sustaining Casa Grande and improving the qualityof-life. (continued) vii To Table of Contents ECONOMIC CONDITIONS AND OUTLOOK (continued) Local indicators point to continued stability. Casa Grande is witness to a sustained, but lower number of issued building permits. The prior three fiscal years brought anticipated slowing of the residential housing construction market. Non-residential building permits with a value of $38.5 million were issued in fiscal year 2013, an increase of $15.8 million over FY2012. The continued commercial development conveys the actuality that sufficient roof-tops have been constructed to expand the commercial markets, which in turn expands the City’s economy and tax base. The City continues to process annexations. The expansion of the city’s boundaries comes with new development activities and land entitlements. Many of these areas have development proposals submitted in conjunction with the annexation petitions. A cost impact proposal accompanies each annexation so the Council is aware of the financial impact before an annexation occurs. Casa Grande’s economy is reflective of the State and the nation in that housing development remains at substantially reduced levels of about 13 new single family permits per month. Although total sales tax revenue is down 31% from FY2008 collections, however when adjusted for the construction portion of the sales tax the City’s FY2013 collections are actually 1% higher than FY2008 collections. Retail Sales. The City of Casa Grande, like all Arizona cities, places a heavy reliance on City sales tax. Overall, local sales tax revenues comprise approximately 46% of General Fund revenues. The City’s sales tax rate is currently at 1.8%, with an additional .2% pledged to construct park and recreation projects, or for economic development. Management is projecting the city’s sales tax collections to continue increasing slightly next year as the economy continues its slow recovery. State Shared Revenues. The City of Casa Grande receives revenue allocations from the State. These “State Shared Revenues” include allocations of the state-collected income tax, sales tax, gas tax, and motor vehicle in-lieu taxes based on population formulas that are created on official census data. With the exception of the gas tax which must be kept in a separate fund for transportation related activities, all other state shared revenues are placed in the General Fund, where they support daily operations. Like our local sales tax, this revenue source is expected to increase gradually as the economy improves. Although a stable source of revenue for the City, state-shared revenues are distributed through the state and are subject to some level of attention from the state legislature each year. Property Tax. The City’s primary property tax rate increased in FY 2013 to $0.9489 from $0.8988 per $100 of assessed valuation. Despite the increase in the tax rate, most residential properties did not experience an increase due to decreasing property values. The amounts collected under the primary levy can be used for any general government purpose, but is limited in size by State statute. The City has received voter authorization to issue $47 million in General Obligation debt. Of this amount $11 million was issued in FY2008 and an additional $19 million in FY2009. The city levies a secondary property tax to fund this debt service. The secondary rate continues to be $0.6308 per $100 of assessed valuation. The City has no immediate plans to issue debt that will result in an increase to the secondary levy. MAJOR INITIATIVES AND ACCOMPLISHMENTS In 2013 the City continued to invest in programs and services that make Casa Grande a better community. The following are some of the efforts and accomplishments of the City during the year: Police o o o o o Transitioned to a new police chief Dispatch response time continued to increase from 49 seconds from start to dispatch, to 53 seconds Part 1 UCR crimes increased by 17% Cleared 55% of Part 1 UCR crimes 250 animals adopted Fire o o o o Responded to 6,685 emergencies, of which 5,155 (77%) involved emergency medical services 81% of ALS responses were under 5 minutes. 3.17 residential structure fires per 1,000 structures Continued mentoring of the Casa Grande Fire Explorers Program. (continued) viii To Table of Contents MAJOR INITIATIVES AND ACCOMPLISHMENTS (continued) Public Works o Hosted the 55th Annual Cactus Fly-In at the municipal airport. o Treatment of an average of 4.5 million gallons per day of wastewater. o Collected 18.3 tons of residential trash. o Collected 63.0 tons of solid waste at the landfill site. o Recycled an average of 42.81 lbs per household in residential solid waste materials. Community Services o Golfers played 63,658 rounds of nine hole equivalents o 98% of program participants rated programs as satisfactory or better o Library visitors of 346,375 at the two libraries o Served a total of 29,993 meals (a 24% decrease) and received a total of 5,925 volunteer hours o Maintained 12.52 acres of parkland per 1,000 population at a cost of $1,089 per acre Development Center o Completed 2,480 plan reviews and issued 1,552 building permits o Performed an average of 19 inspections per inspector per day OTHER MATTERS Debt Administration. On June 30, 2013, the City had a number of debt issues outstanding. Total debt at June 30, 2013, was $114.7 million. The City’s general credit was rated A+ by Fitch Ratings and received an A- rating from Standard & Poors. The City is diligent in its efforts to maintain and improve these ratings. The ratings for the existing issues are as follows: Standard & Poors Investor Service ExciseTax Revenue Series 2009 Series 2012 General Obligation Bonds nr AA nr Fitch IBCA AAnr AA In 2003 the City issued $18,120,000 of Excise Tax Revenue Obligations for the purpose of expanding the wastewater treatment plant and refunding 1994 and 1995 Obligations. This bond was advance refunded in 2012. All Excise Tax Revenue Obligations are secured by a pledge of and first lien on all excise, transaction, franchise, privilege and business taxes, state shared sales and income taxes, fees for licenses and permits and state revenue sharing, which the City presently or in the future validly imposes or receives from other entities. As of June 30, 2013 the City had $17.7 million of Excise Tax Revenue Obligations outstanding. Under State statutes the City can issue general obligation bonds for up to an amount not exceeding 20% of the secondary assessed valuation. As of June 30, 2013, the City has debt capacity remaining of $56.8 million for general obligation bonds subject under the 20% and 6% constitutional limitations based on the FY 2013 secondary assessed valuation. The City has $28.1 in outstanding General Obligation bonds, with voter approval to issue an additional $17 million over the next several years. FINANCIAL POLICIES 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; injuries to employees; and natural disasters. The City’s liability risks are covered by commercial insurance purchased from independent third parties. The City is fully insured with per occurrence limit at $2 million general liability coverage with a $25,000 deductible and a $13 million umbrella liability policy. The City of Casa Grande has an aggressive safety program that promotes employee safety on the job and focuses on risk control techniques designed to minimize accident-related losses. (continued) ix To Table of Contents OTHER INFORMATION 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 of Casa Grande, Arizona, for its comprehensive annual financial report for the fiscal year ended June 30, 2012. This was the 22nd consecutive year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easy to read and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Government Finance Officers Association of the United States and Canada presented a Distinguished Budget Presentation Award to the City of Casa Grande, Arizona for its annual budget for the fiscal year beginning July 1, 2012. To receive this award, a governmental unit must publish a budget document that meets program criteria. The Award is valid for a period of one year. This is the 16th Distinguished Budget Presentation Award the City of Casa Grande received. We expect to continue to participate and meet the program requirements. ACCOMPLISHMENT. The preparation of the City's Comprehensive Annual Financial Report was only made possible by the dedication and hard work of Julie Scherer, Supervising Accountant, the Finance Department, and the firm of Henry and Horne, L.L.P. We give them our sincere thanks for their effort in the creation of this report. We wish to express our appreciation to the City Manager, the Mayor and City Council for their support and leadership. Sincerely, Doug Sandstrom Finance Director x To Table of Contents xi To Table of Contents To Table of Contents City of Casa Grande, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 CITY COUNCIL Mayor Robert M. Jackson Mayor Pro-Tem Lisa Fitzgibbons Council Members Matt Herman Mary Kortsen Karl Montoya Dick Powell Ralph Varela City Manager James Thompson Deputy City Manager Larry Rains Finance Department Staff Doug Sandstrom, Finance Director Julie Scherer, Supervising Accountant James Fults, Accountant Gay Barnhart, Administrative Assistant xii To Table of Contents City of Casa Grande Organizational Chart People of Casa Grande Mayor and Council City Manager City Attorney Police Administration Deputy City Manager Fire Department Public Works Administrative Services Animal Control Engineering Police Communications Wastewater Polic e Patrol Sanitation Police Criminal Investigations Police Special Operations City Clerk City Court Finance Department Planning & Development Community Services Human Resources Financial Services Planning Library Risk Management Information Systems Permits Senior Adult Services Geographical Information System Inspections Parks Maintenance Equipment Maintenance Housing Recreation Programs Streets Code Enforcement Len Colla Center Public Information Officer Water Aquatics Airport W omen's Club Facilities Maintenance Golf Course General Recreation To Table of Contents FINANCIAL SECTION To Table of Contents To Table of Contents 1 To Table of Contents 2 To Table of Contents 3 To Table of Contents To Table of Contents MANAGEMENT’S DISCUSSION AND ANALYSIS To Table of Contents MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Casa Grande, Arizona (the City), we offer this narrative overview and analysis of the financial activities of the City of Casa Grande, Arizona for the fiscal year ended June 30, 2013. This discussion and analysis is designed to (1) assist the reader focus on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any material deviations from the approved annual budget, and (5) identify individual fund issues or concerns. Please read it in conjunction with the transmittal letter presented on pages v - xi of this report as well as the City’s financial statements beginning on page 13 and the accompanying notes to the financial statements. Financial Highlights  The City’s total net position, on the government-wide basis, totaled $307.0 million at June 30, 2013 of which $52.3 million is unrestricted. This is a decrease of $1.7 million from fiscal year 2012, a decrease of $2.0 million of unrestricted in the government activities and an increase of $0.3 million in the business-type activities.  The governmental activities revenues increased by approximately $3.0 million over the previous year.  The business-type activities operating revenues decreased by $2.3 million from the previous year due mainly to capital grants and contributions.  The General Fund reported a change in fund balance of $0.6 million for the year.  At June 30, 2013, restricted, assigned and non-spendable balance for the General Fund was $19.3 million, or 55% of General Fund expenditures for fiscal year 2013.  At June 30, 2013, unassigned fund balance of the General Fund was $5.3 million.  The governmental activities general revenues of $56.2 million were $0.9 million less than expenditures before other financial sources and uses.  The business-type activities net position was $62.4 million as of June 30, 2013 which is a decrease of $2.7 million from the previous year.  A prior period adjustment of $0.8 million is reported reflecting changes due to GASB 65 implementation. OVERVIEW OF THE FINANCIAL STATEMENTS Required Components of the Annual Financial Report Management’s Discussion and Analysis Government‐ Wide Financial Statements Basic Financial Statements Required Supplementary Information Fund Financial Statements Notes to the Financial Statements Summary Detail 4 Other Supplementary Information To Table of Contents Government-wide Financial Statements The government-wide financial statements (see pages 13-15) are designed to provide a broad overview of the City’s finances in a manner similar to those used by private businesses. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. The activities of the City are broken into two columns on these statements – governmental activities and businesstype activities. A total column is also provided. Governmental activities include the basic services of the City including general government (administration), parks and recreation, police, fire, planning and development and streets. Taxes and other general revenues support the majority of these activities. Business-type activities include the private sector type activities such as golf course, sanitation, water and wastewater. These activities are primarily supported through user charges and fees. The statement of net position presents information on all of the City’s assets and liabilities, both current and longterm. The difference between assets and liabilities is reported as net position. The focus on net position is designed to focus on government as a business. 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. However, to accurately assess the overall health of the City, other indicators, including non-financial indicators like the City’s property tax base and condition of infrastructure, must also be considered. The statement of activities presents information showing how the City’s net position changed over the most recent fiscal year. Full accrual accounting is used for the government-wide financial statements and all changes to net position are reported at the time that the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. This statement also focuses on both the gross and net costs of the various functions of the City, based only on direct functional revenues and expenses. The statement is designed to show the extent to which the various functions depend on general taxes and revenue for support. Fund Financial Statements Also presented in the basic financial statements are the traditional fund financial statements for major funds of the City. A major fund is determined based on the % a certain fund value is in relation to all of the same fund type – either governmental or proprietary. A fund is a grouping of related accounts used to maintain control over resources segregated for specific activities or conditions. Funds ensure and demonstrate compliance with finance-related legal requirements as well as for managerial control to demonstrate fiduciary responsibility over the assets of the City. The City has three (3) kinds of funds: Governmental funds – Most of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at the year-end that are available for spending. Consequently, the governmental funds statements provided a detailed short-term view that helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are on page 18 and 21, respectively. Proprietary funds – Proprietary funds account for business-type activities of the City. Proprietary funds, like the government-wide statements, provide both long and short-term financial information. Enterprise funds are used for activities that primarily serve customers for which fees are charged. The City has four enterprise funds: golf course, sanitation, water and wastewater funds. 5 To Table of Contents The internal service funds reflect activities in which the City is the customer. The fleet maintenance and insurance funds are the City’s two internal service funds. Their purpose is to provide vehicle maintenance services to City departments and to provide cost accounting for insurance costs and risk. Fiduciary funds – Fiduciary funds account for resources held for the benefit of others. Fiduciary funds are not included in the government-wide financial statements because the resources of those funds are not available to support projects of the City. Notes to the financial statements – The notes to the financial statements (pages 35-62) provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and should be read with the financial statements. Required supplementary information other than MD&A – Governments have an option of including the budgetary comparison statements for the general fund and major special revenue funds as either part of the fund financial statements within the basic financial statements or as required supplementary information after the notes. The City has chosen to present these budgetary statements as part of the basic financial statements and in the supplementary information. Additionally, governments are required to disclose certain information about employee pension funds. The City has disclosed this information in Note 8 to the financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS The following tables, graphs and analysis discuss the financial position and changes to the financial position for the City as a whole as of and for the year ended June 30, 2013. Statement of Net Position Net position may serve over time as a useful indicator of the City’s financial position. The following table reflects the condensed statement of net position as of June 30, 2013. The City has chosen to account for its golf course, water, wastewater and sanitation operations in enterprise funds which are shown as Business Activities. Statement of Net Position (in Millions) Current and other assets Capital assets Total assets Deferred Outflows Other liabilities Long-term liabilities Total liabilities Deferred Inflows Net position: Net Investment in Capital Assets Restricted Unrestricted Total net position Governmental Activities 2012 2013 $ 92.1 $ 97.1 203.4 206.3 295.5 303.4 Business-type Activities 2012 2013 $ 21.6 $ 19.1 113.5 110.8 135.1 129.9 Total Primary Government 2012 2013 $113.7 $116.2 316.9 317.1 430.6 433.3 n/a 0.0 n/a 0.0 n/a 0.0 5.8 49.7 55.5 7.1 51.7 58.8 1.7 68.3 70.0 1.5 66.0 67.5 7.5 118.0 125.5 8.6 117.7 126.3 n/a 0.0 n/a 0.0 n/a 0.0 154.1 37.2 48.7 $240.0 157.4 40.4 46.8 $244.6 49.4 12.0 3.7 $ 65.1 47.6 9.3 5.5 $ 62.4 203.5 49.2 52.4 $305.1 205.0 49.7 52.3 $307.0 6 To Table of Contents At year end June 30, 2013 the net position of the City totaled $307.0 million, a decrease of $1.7 million from June 30, 2012. Of this $307.0 million, $244.6 million was in governmental activities, a 1.9% increase and $62.4 million was in the business-type activities, a 4.2% decrease. Net Position consists of three components. The largest portion of net position ($205.0 million or 67%) reflects the City’s investment in capital assets net of accumulated depreciation and any related outstanding debt used to acquire or construct those assets. The City uses these capital assets to provide services to its citizens; consequently, it is not the City’s intention to sell these assets and they are therefore not available for future spending. The restricted portion of the City’s net position ($49.6 million or 16%) represents resources subject to external restrictions on how they may be spent. This component is primarily made up of accumulated development impact fees collected by the City. These funds are specifically reserved for capital improvements pertaining to growth as it relates to maintaining a consistent level of service to all citizens. The third portion consists of unrestricted net position ($52.3 million or 17%), which may be used to meet the City’s ongoing obligation to citizens and creditors. Changes in Net Position The City’s total revenues for the year ended June 30, 2013 were $77.8 million. The total cost of all programs and services was $75.2 million. The following table presents a summary of the changes in net position for the year ended June 30, 2013. Changes in Net Position (in millions) Governmental Activities Revenues Program revenues Charges for services Operating grants and Capital grants and General revenues Property taxes Sales taxes Franchise taxes Shared revenues Other Total Revenues Expenses General Government Public Safety Streets/Transportation Public Works Culture and Recreation Economic Development Other Water Golf Course Sewer Sanitation Total Expenses Excess before transfer Transfers In (Out) Increase (decrease) in Net 2012 $ Business-type Activities 2013 2012 Total 2013 2012 2013 4.2 7.2 0.7 $ 6.8 6.8 10.2 $14.4 2.3 $13.9 0.5 $ 18.6 7.2 3.1 $20.7 6.8 10.7 6.4 18.9 2.2 10.0 0.2 49.9 6.9 19.2 2.2 11.1 0.1 63.3 0.3 0.43 16.8 0.0 0.1 14.6 6.4 18.9 2.2 10.0 0.2 66.7 6.9 19.2 2.2 11.1 0.2 77.8 6.9 22.6 17.6 2.5 7.2 3.1 2.6 62.6 (12.7) 0.9 $(12.6) 6.8 24.3 12.4 3.2 7.3 3.1 2.4 59.5 3.8 1.3 $5.1 0.2 1.3 9.8 5.1 16.3 0.4 (0.9) $ 0.4 0.2 1.3 9.2 5.0 15.7 (1.1) (1.3) $(2.4) 6.9 22.6 17.6 2.5 7.2 3.1 2.6 0.2 1.3 9.8 5.1 79.0 (12.3) $(12.3) 6.8 24.3 12.4 3.2 7.3 3.1 2.4 0.2 1.3 9.2 5.0 75.2 2.7 $2.7 7 To Table of Contents The following graph shows the functional revenues and expenses of governmental activities to demonstrate the extent to which the governmental functions produce direct revenues to offset the program costs. The expenses do not represent full cost allocation to these functions. Expenses not covered by direct program revenues are covered by general revenues of the City, primarily taxes and state shared revenues. Governmental activities account for 81% of the total revenues of the City and 79% of the total expenses in fiscal year 2013. This compares to 79% of total revenues and 81% of expenses in fiscal year 2012. Governmental Programs Revenues and Expenses Fiscal Year 2013 $30,000,000 $27,000,000 $24,000,000 $21,000,000 Revenues Expenditures $18,000,000 $15,000,000 $12,000,000 $9,000,000 $6,000,000 $3,000,000 $0 General Government Public safety Streets/Transportation Public works Culture & recreation Economic development FINANCIAL ANALYSIS OF THE CITY’S FUNDS The City maintains fund accounting to demonstrate compliance with budgetary and legal requirements. The following is a brief discussion of financial highlights from the fund financial statements. Governmental Funds The focus of governmental fund financial statements (pages 16-24) is to provide information on near-term inflows, outflows and balances of spendable resources. All major governmental funds are discreetly presented in these financial statements, while the non-major funds are combined into a single column. Combining statements for the non-major funds may be found on pages 63-70. For fiscal year ended June 30, 2013, the governmental funds reflect a combined fund balance of $89.9 million, an increase of $3.9 million. A portion of the fund balance, $43.0 million is restricted for specific expenses or is legally segregated for a specific future use. The remaining $46.9 million is classified as assigned or unassigned. This balance may serve as a useful indicator of a government’s net resources available for spending at the end of the year. 8 To Table of Contents The following graph indicates fund balances for select governmental funds for the past two fiscal years. Governmental Fund Balances $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 General Streets System Development 2013 Capital Other 2012 The General Fund is the chief operating fund of the City and accounts for many of the major functions of the government, including public safety, community services, development services and general administrative services. The General Fund revenues total $36.7 million, an increase of $2.0 million, in fiscal year 2013. The primary increases are in licenses and permits, and state shared. The expenses, before other financing sources and uses, totaled $35.0 million, an increase of $1.0 million. Transfers to other funds were a net of ($1.1) million resulting in an increase to fund balance of $0.6 million. The Highway User Revenue Fund is required by state statute to track the state allocation of gasoline taxes and other state revenues shared with local governments and must be used for transportation purposes only. The City also accounts for a half-cent sales tax that is collected and distributed by Pinal County for the purposes of construction and improvements of major roadways within the City. Revenue in this fund totaled $4.8 million, a decrease of $0.5 million from the prior fiscal year, while expenses totaled $5.2 million, a decrease of $0.7 million in the fiscal year ended June 30, 2013. Another governmental fund of the City is the System Development Fee Fund which collected impact fees for public safety, parks and recreational facilities, library facilities, and general government. The fees in this fund are no longer collected due to a change in state law. The fund balance is planned to finance eligible growth related capital improvements over the next several years. The Capital Development and Replacement Fund accounts for accumulated proceeds and capital expense of proceeds for the construction of capital projects and for replacement of equipment. Other governmental funds include the Grants Fund which accounts for the various state and federal grants awarded to the City for specific purposes in public safety, parks and recreation, and library; the Construction Sales Tax Fund accounts for capital construction as authorized via ordinance 1397.03.07; all non-major governmental funds of the City are combined into the “Non-Major Governmental Funds” column on the governmental fund statements. 9 To Table of Contents Proprietary Funds The proprietary funds financial statements are prepared on the same accounting basis and measurement focus as the government-wide financial statements, but provide additional detail since each enterprise fund is shown individually on the fund statement. Net position of the enterprise funds were $62.4 million, a decrease of $2.7 million as of June 30, 2013. Overall there is an increase to unrestricted assets leaving a balance of $5.5 million. Operating revenues in fiscal year 2013 were $14.4 million, showing very little increase from the prior fiscal year, while operating expenses totaled $15.7 million, an increase of $1.4 million, resulting in $1.2 million of net operating loss. BUDGETARY HIGHLIGHTS The City’s annual budget is the legally adopted expenditure control document of the City. A statement showing the budget amounts for the general fund is provided as required supplementary information on page 71. This statement compares the original adopted budget, the budget as amended throughout the fiscal year, and the actual expenditures prepared on a budgetary basis. Amendments to the adopted budget may occur throughout the year in a legally permissible manner (see Note 1 (E) on page 39 for more information on budget policies). Use of contingency is required for capital projects with budget overages, and other unanticipated expenses. Budget amendments are processed to provide expenditure authority from unanticipated revenue sources. These include new or increased grants and intergovernmental agreements. It is generally the policy of the City to not include revenues and operational expenditure authority for these types of items in the operational budgets unless the funding is reasonably assured at the time of completion of the annual budget. Instead, the City budgets contingency accounts to allow for later transfer to operational budgets when the funding is received. The City’s total adopted budget was $162,502,190 during fiscal year 2013. Budget amendments between funds or departments or from budgeted contingencies into operational expense/expenditure accounts did occur. However, the adopted budget cannot be increased. General Fund inflows (revenues and other sources) of $36.7 million, on a budgetary basis, were slightly less than budgeted inflows of $36.8 million, while actual outflows (expenditures and other uses) of $35.0 million were 96% of original budgeted outflows, reflecting an efficiently allocated budget. 10 To Table of Contents CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of June 30, 2013, the City had $317.1 million invested in various capital assets, net of accumulated depreciation. Of the $317.1 million $206.3 million (65%) is invested in governmental activities and $110.8 million (35%) is invested in business-type activities. Major additions to capital assets during the fiscal year include the following:     Continued reconstruction of downtown streets for $2.3 million. Completion of the Solar panel parking structure for $2.1 million. Purchase and outfitting of a new ladder truck for $1.2 million Completion of South Terminal Apron at the Casa Grande Municipal Airport for $1.4 million. The following table provides a breakdown of the capital asset balances net of accumulated depreciation at June 30, 2013. Additional information on the City’s capital assets may be found in Note 7 on pages 48-49. Capital Assets (In Millions) Governmental Activities 2012 2013 Land & Construction in Progress Building & improvements Machines & equipment Total $ 20.2 176.3 6.9 $203.4 $ 23.1 175.8 7.4 $206.3 11 Business-type Activities 2012 2013 $ 3.0 101.0 9.5 $113.5 $ 3.0 98.5 9.3 $110.8 Total 2012 2013 $ 23.2 277.3 16.4 $316.9 $ 26.1 274.3 16.7 $317.1 To Table of Contents Long-Term Debt The City’s outstanding long-term debt, including bonds, notes, capital leases, and compensated absences, was $117.8 million at June 30, 2013, with $5.8 million due within one year. Of this total, $54.3 million was in governmental activities and $63.5 million was in business-type activities. Of the outstanding debt, $29.7 million is excise tax revenue obligation bond collateralized by the City’s excise tax stream. All other outstanding debt is secured by pledges of specific revenue sources of the City. The following schedule shows the outstanding debt of the City (both current and long term) as of June 30, 2013. Further details can be found in Notes 10 to 15 on pages 54-59. Outstanding Debt (In Millions) Compensated Absences Capital Leases Bonds Payable Notes/loans payable Total Governmental Activities 2012 2013 Business-type Activities 2012 2013 2012 2013 $ 1.9 4.8 45.7 $52.4 $ 0.2 16.6 51.7 $68.5 $ 2.1 4.8 62.3 51.7 $120.9 $ 2.3 7.8 57.7 50.0 $117.8 $ 2.0 7.8 44.5 $54.3 $ 0.3 13.2 50.0 $63.5 Total ECONOMIC FACTORS Casa Grande’s population has grown steadily since 2000. The growth rate over the course of the past 10 years was 60%. The unemployment rate in Casa Grande (Pinal County) for June 2013 was approximately 9.1%, which is higher than both the state (8.0%) and the national averages (7.5%). While the local economy witnessed a solid year, it has been largely driven by commercial construction. The retail sales tax remained fairly stable due to the regional nature of Casa Grande. Arizona cities remain dependent on sales taxes and other economically sensitive tax revenues and are susceptible to slowdowns in the economy. Within Casa Grande, the local economy is experiencing a small increase in sales tax collection as the economy changes focus from one of spending to one of saving and repaying debt. Casa Grande has been selected as the site for a global sourcing center, in addition to a Sam’s Club and several new industrial and manufacturing companies which will open in FY2014. Though total assessed values for Casa Grande have decreased in recent years, the property values have essentially doubled from 2004 to 2013. For tax year 2013, the total assessed value decreased by 11% with just under half of the decrease occurring in residential values. Residential values account for slightly more than one-third of the total. FINANCIAL CONTACT This financial report is designed to provide a general overview of the City of Casa Grande, Arizona’s finances and to demonstrate accountability for the use of public funds. Questions about any of the information provided in this report, or requests for additional information should be addressed to the City’s Finance Director at the following address: City of Casa Grande, 510 E. Florence Blvd. Casa Grande, AZ 85122 or send an e-mail to dsandstrom@casagrandeaz.gov. Copies of this report and other financial information can also be found on the city’s website www.casagrandeaz.gov. 12 To Table of Contents BASIC FINANCIAL STATEMENTS To Table of Contents To Table of Contents City of Casa Grande, Arizona Statement of Net Position June 30, 2013 ASSETS Cash Investments Receivables (net of allowance for uncollectibles) Due from other governments Internal balances Inventories Prepaids Restricted assets: Restricted investments Capital assets: Land and construction in progress Other capital assets (net of accumulated depreciation) Total assets Primary Government Governmental Business-type Activities Activities $ 11,479,126 $ 744,264 74,526,264 16,008,736 5,913,849 2,281,966 1,064,255 55,158 (55,158) 273,314 52,120 335,183 3,455,884 NET POSITION Net Investment in Capital Assets Restricted for: Highways and streets Grant purposes Community development Debt service Capital projects Unrestricted Total net position $ 3,455,884 2,983,724 26,102,263 183,155,042 303,376,614 107,844,911 129,860,563 290,999,953 433,237,177 8,839 8,839 45,269 45,269 54,108 54,108 3,224,089 855,091 375,496 692,502 10,601 113,964 661,837 3,916,591 10,601 969,055 1,037,333 912,793 358,867 732,865 650,454 113,115 2,353,629 652,135 54,546 1,025,908 2,712,496 1,385,000 705,000 1,115,637 7,472,753 16,919,967 26,153,600 58,771,612 138,229 47,671,092 11,375,462 1,135,229 2,551,350 67,523,692 1,253,866 55,143,845 28,295,429 27,288,829 2,551,350 126,295,304 157,440,959 47,631,810 205,072,769 13,958,498 375,927 11,508,052 4,185,438 10,367,874 46,777,093 244,613,841 4,678,660 4,566,989 5,504,681 62,382,140 13,958,498 375,927 11,508,052 8,864,098 14,934,863 52,281,774 306,995,981 The accompanying notes are an integral part of the financial statements 13 - Total 12,223,390 90,535,000 8,195,815 1,064,255 325,434 335,183 23,118,539 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding Total Deferred Outflows of Resources LIABILITIES Accounts payable and other current liabilities Deposits held Accrued wages and benefits Accrued interest payable Noncurrent liabilities: Due within one year: Current portion of compensated absences Current portion of capital leases and notes Current portion of excise tax revenue obligations Current portion of bonds payable Due in more than one year: Noncurrent portion of compensated absences Noncurrent portion of capital leases and notes Noncurrent portion of excise tax revenue obligations Noncurrent portion of bonds payable Less: Deferred amount on refunding Closure and postclosure liability Total liabilities $ $ $ To Table of Contents City of Casa Grande, Arizona Statement of Activities June 30, 2013 Functions/Programs Primary government: Governmental activities: General government Public safety Streets/Transportation Public works Culture and recreation Economic development Interest on long-term debt Total governmental activities Expenses $ Business-type activities: Water Golf course Wastewater Sanitation Total business-type activities Total primary government Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions 6,766,944 24,280,544 12,494,463 3,205,901 7,273,320 3,117,655 2,367,185 59,506,012 $ 226,382 1,299,400 9,188,433 4,953,994 15,668,209 $ 75,174,221 342,086 1,182,158 1,112,963 60,757 443,652 3,678,048 6,819,664 $ 173,935 994,534 6,541,782 6,151,881 13,862,132 $ 20,681,796 178,455 794,104 4,776,362 190,318 442,744 441,722 6,823,705 $ $ 6,823,705 545,163 545,163 $ 10,723,062 General revenues: Property taxes Sales taxes Franchise taxes Shared revenues - unrestricted: State sales taxes Urban revenue sharing Auto-in-lieu Investment earnings Miscellaneous Transfers in (out) Total general revenues and transfers Change in net position Net Position-beginning Prior period adjustment Net Position-beginning - restated Net Position-ending The accompanying notes are an integral part of the financial statements 14 948,405 9,229,494 10,177,899 To Table of Contents Net (Expense) Revenue and Changes in Net Position Governmental Activities $ (6,246,403) (21,355,877) 2,624,356 (2,954,826) (6,386,924) 1,002,115 (2,367,185) (35,684,744) Business-type Activities $ $ (35,684,744) $ $ (52,447) (304,866) (2,101,488) 1,197,887 (1,260,914) $ 6,877,452 19,242,309 2,248,227 3,975,626 4,961,423 2,129,894 3,586 49,172 1,337,500 40,825,189 5,140,445 240,037,092 (563,696) 239,473,396 244,613,841 - Total (1,260,914) (52,447) (304,866) (2,101,488) 1,197,887 (1,260,914) $ 25,737 - $ 40,519 60,209 (1,337,500) (1,211,035) (2,471,949) 65,111,633 (257,544) 64,854,089 62,382,140 (6,246,403) (21,355,877) 2,624,356 (2,954,826) (6,386,924) 1,002,115 (2,367,185) (35,684,744) (36,945,658) 6,877,452 19,268,046 2,248,227 $ 3,975,626 4,961,423 2,129,894 44,105 109,381 39,614,154 2,668,496 305,148,725 (821,240) 304,327,485 306,995,981 15 To Table of Contents City of Casa Grande, Arizona Balance Sheet Governmental Funds June 30, 2013 ASSETS Cash Investments Accounts receivable (less allowance for uncollectibles) Due from other governments Due from other funds Inventories Restricted assets: Cash and cash equivalents Total assets LIABILITIES Accounts payable and other current liabilities Accrued wages and benefits Due to other funds Compensated absences Total liabilities General $ 109,711 20,399,174 Highway Users $ 4,633,193 3,838,159 Grants & Subsidies $ 307,344 - 4,088,697 26 1,599,134 6,264 578,025 - 5,361 239,590 - 9,049,377 $ 552,295 $ $ $ $ $ DEFERRED INFLOWS OF RESOURCES Deferred Revenue Total Deferred Inflows of Resources 26,203,006 449,141 758,789 4,404 1,212,334 $ $ 556,867 39,265 59 596,191 451,116 451,116 FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Capital Replacement/ Recreation/ Development $ 450,354 28,071,864 - 6,264 4,701,221 14,550,404 5,281,667 24,539,556 $ 26,203,006 $ 638,771 - 94,749 94,749 8,453,186 8,453,186 375,927 375,927 9,049,377 $ 552,295 The accompanying notes are an integral part of the financial statements 16 54,175 27,428 16 81,619 425,951 2,556,640 32,143,580 1,602,928 1,602,928 - 2,556,640 2,523,457 25,460,555 30,540,652 $ 32,143,580 To Table of Contents System Development $ 676,049 7,785,691 Non-Major Governmental Funds $ 3,381,994 14,431,375 Total Governmental Funds $ 9,558,645 74,526,264 733,152 824,641 5,831,186 1,064,257 2,237,905 73,247 - $ $ 8,461,740 11,735 638,771 650,506 66,983 $ $ - 8,461,740 311,618 12,385 1,542,410 1,866,413 $ $ 299,833 299,833 7,811,234 7,811,234 $ 899,244 20,337,390 20,337,390 2,986,464 837,867 2,181,181 4,479 6,009,991 845,698 845,698 66,983 16,497,586 2,182,985 (576,410) 18,171,144 $ 3,455,884 96,747,388 73,247 40,395,794 2,523,457 42,193,944 4,705,257 89,891,699 $ 96,747,388 17 To Table of Contents City of Casa Grande, Arizona Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2013 Fund balance - total governmental funds balance sheet $89,891,699 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental capital assets Less accumulated depreciation Internal service capital assets Less accumulated depreciation $333,193,613 (126,956,854) 360,090 (323,268) 206,273,581 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Compensated absences Capital leases Bonds payable Bond discount Deferred Loss Bond premium (2,028,430) (7,831,620) (44,355,939) (309,761) 8,839 208,806 (54,308,105) Certain revenues earned but not received within 60 days of year -end are deferred for the governmental statements, but are recognized as revenue for government-wide statements. Grants Property Tax Sales Tax/Facility Use 332,872 259,813 253,013 845,698 Interest payable on long-term debt is not reported in the governmental funds. Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds (excluding capital assets) are reported with governmental activities. Net position of governmental activities - statement of net position The accompanying notes are an integral part of the financial statements 18 (375,496) 2,286,464 $244,613,841 To Table of Contents To Table of Contents City of Casa Grande, Arizona Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds June 30, 2013 REVENUES Taxes: Property taxes City sales tax Franchise tax Licenses and permits Intergovernmental revenues Charges for services Fines Investment earnings Contributions and donations Rental and sale of city property Miscellaneous Total revenues General $ EXPENDITURES Current: General government Public safety Streets/Transportation Public works Culture and recreation Planning and economic development Capital outlay Debt Service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Lease purchase proceeds Total other financing sources and uses Net change in fund balances Fund balances - beginning of year Fund balances - end of year $ 3,624,008 16,807,168 2,248,227 1,263,721 11,129,900 858,597 735,217 (139,412) 1,073 133,843 39,320 36,701,662 Highway Users Grants & Subsidies $ $ 4,775,504 20,261 4,821 4,800,586 Capital Replacement/ Recreation/ Development 2,480,053 569 53,130 2,533,752 $ 2,138,075 67,785 266,165 2,472,025 6,097,709 20,094,516 2,009,791 5,209,067 1,510,589 - 2,717,802 2,325,172 1,488,670 614,716 32,479 841,326 3,575 30,900.00 4,508,121 84,193 35,005,865 106,939 42,657 5,192,570 2,977,191 57,000 114,828 4,714,424 1,695,797 (391,984) (443,439) (2,242,399) 1,678,076 (2,796,267) (1,118,191) 577,606 23,961,950 24,539,556 20,000 (503,130) (483,130) (875,114) 9,328,300 8,453,186 645,964 (75,000) 570,964 127,525 248,402 375,927 2,887,071 (500,000) 3,328,600 5,715,671 3,473,272 27,067,379 30,540,651 $ The accompanying notes are an integral part of the financial statements 19 $ $ To Table of Contents Non-Major Governmental Funds System Development $ 167,878 21,147 189,025 $ $ 6,861,603.00 19,242,309 2,248,227 1,263,721 20,814,430 4,024,127 735,217 3,586 54,680 537,055 423,177 56,208,132 5,330 181,174 39,307 1,370,875 503,200 36,080 881,384 2,501,745 7,473,914 22,089,961 2,717,802 2,040,691 6,041,037 2,424,452 10,215,671 225,811 1,470,090 2,186,413 8,949,787 1,718,222 2,343,898 57,065,648 (36,786) $ 3,237,595 297,066 2,428,973 2,997,652 33,236 477 403,212 112,871 9,511,082 Total Governmental Funds (1,185,014) (1,185,014) (1,221,800) 9,033,035 7,811,235 561,295 $ 2,012,044 (727,244) 1,284,800 1,846,095 16,325,049 18,171,144 (857,516) $ 7,243,155 (5,786,655) 3,328,600 4,785,100 3,927,584 85,964,115 89,891,699 20 To Table of Contents City of Casa Grande, Arizona Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities For the Year Ended June 30, 2013 Net change in fund balances - total governmental funds $3,927,584 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. Expenditures for capital assets Contribution of Florence Blvd Less current year depreciation $10,215,670 $7,200,000 (14,530,278) 2,885,392 The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net assets. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the fund statements. Property tax 15,849 Bond discounts are expended in the governmental funds when paid, and are capitalized and amortized in the statement of net position. This is the amount of current year bond discount. The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Issuance of lease debt Bond payments Lease payments (117,054) (3,328,600) 1,376,282 343,097 (1,609,221) Certain revenues in the governmental funds that provide current financial resources are not included in the statement of activities because they were recognized in a prior period. However, other revenues that are deferred in the governmental funds because they do not provide current financial resources due to unavailability are recognized in the statement of activities. Grants The internal service fund net revenue is reported with governmental activities. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences Interest expense on long-term debt Change in net position of governmental activities 18,536 163,543 (101,756) (42,428) $5,140,445 The accompanying notes are an integral part of the financial statements 21 To Table of Contents City of Casa Grande, Arizona General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual June 30, 2013 Budgeted Amounts REVENUES Taxes: Property taxes City sales tax Franchise tax Licenses and permits Intergovernmental revenues Charges for services Fines Investment earnings Contributions and donations Rental and sale of city property Miscellaneous Total revenues EXPENDITURES Current: General government Mayor and Council City manager Attorney Clerk Finance Information Technology Administrative Services Public safety Police Fire Court Animal Control Public works Culture and Recreation Planning and Economic Development Capital Outlay Debt Service: Principal Total expenditures Excess (deficiency) of revenues over (under) expenditures Original $ OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year 3,493,000 17,313,000 2,170,000 819,000 11,211,790 689,860 870,220 30,000 5,000 114,000 135,000 36,850,870 Final $ Variance with Final Budget- $ $ 3,624,008 16,807,168 2,248,227 1,263,721 11,129,900 858,597 735,217 (139,412) 1,073 133,843 39,320 36,701,662 131,008 (505,832) 78,227 424,721 (81,890) 168,737 (135,003) (169,412) 1,073 19,843 (75,680) (144,208) 2,193,500 815,380 691,960 397,160 979,430 1,611,350 683,870 1,999,070 864,900 691,960 397,160 979,430 1,611,350 712,520 1,163,898 849,501 667,283 318,172 981,184 1,496,157 621,514 835,172 15,399 24,677 78,988 (1,754) 115,193 91,006 12,067,350 6,743,330 612,120 306,130 2,185,620 5,395,810 1,597,730 174,000 12,032,840 6,743,280 607,240 310,010 2,189,060 5,432,560 1,595,930 113,570 12,392,565 6,800,833 585,719 315,399 2,009,791 5,209,067 1,510,589 - (359,725) (57,553) 21,521 (5,389) 179,269 223,493 85,341 113,570 82,840 36,537,580 84,200 36,365,080 84,193 35,005,865 7 1,359,215 313,290 480,790 1,695,797 1,215,007 1,393,780 (1,965,670) (571,890) (258,600) $ 3,493,000 17,313,000 2,170,000 839,000 11,211,790 689,860 870,220 30,000 114,000 115,000 36,845,870 Actual Amounts 23,961,950 23,703,350 1,393,780 (1,985,670) (591,890) (111,100) $ The accompanying notes are an integral part of the financial statements 22 23,961,950 23,850,850 1,678,076 (2,796,267) (1,118,191) 577,606 $ 23,961,950 24,539,556 284,296 (810,597) (526,301) 688,706 $ 688,706 To Table of Contents City of Casa Grande, Arizona Highway Users Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual June 30, 2013 Budgeted Amounts REVENUES Taxes: State-shared gas tax County sales tax Investment earnings Miscellaneous Total revenues Original $ EXPENDITURES Streets/Transportation Personal services Contractual services Materials and supplies Capital outlay Debt service 3,145,480 1,700,000 6,000 25,000 4,876,480 $ Final Actual Amounts Variance with Final Budget- 3,145,480 1,700,000 6,000 25,000 4,876,480 $ $ 3,056,317 1,719,187 20,261 4,821 4,800,586 (89,163) 19,187 14,261 (20,179) (75,894) 1,292,380 507,710 1,025,020 8,796,000 84,500 1,229,920 473,830 1,056,260 8,796,000 149,600 1,219,658 477,206 1,020,938 2,325,172 149,596 10,262 (3,376) 35,322 6,470,828 4 Total Streets/Transportation 11,705,610 11,705,610 5,192,570 6,513,040 Total expenditures 11,705,610 11,705,610 5,192,570 6,513,040 Excess (deficiency) of revenues over (under) expenditures (6,829,130) (6,829,130) (391,984) 6,437,146 (543,130) (543,130) (7,372,260) 9,328,300 (543,130) (543,130) (7,372,260) 9,328,300 20,000 (503,130) (483,130) (875,114) 9,328,300 20,000 40,000 60,000 6,497,146 - OTHER FINANCING USES Transfers in Transfers out Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ 1,956,040 $ 1,956,040 The accompanying notes are an integral part of the financial statements 23 $ 8,453,186 $ 6,497,146 To Table of Contents City of Casa Grande, Arizona Grants and Subsidies Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenues Investment earnings Contributions and donations Total revenues $ EXPENDITURES Public safety Personal services Contractual services Materials and supplies Capital outlay Total Public Safety Culture and recreation Personal services Contractual services Materials and supplies Capital outlay Total Culture and Recreation Community Development Contractual services Total Community Development Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES Transfers in Transfers out Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ Original 5,201,170 53,880 5,255,050 Variance with Final Budget$ (2,721,117) 569 (750) (2,721,298) Final 5,201,170 53,880 5,255,050 Actual Amounts $ 2,480,053 569 53,130 2,533,752 1,500,000 50,000 3,410,050 4,960,050 2,380,510 16,260 336,660 1,553,410 4,286,840 1,182,977 16,259 289,434 771,248 2,259,918 86,620 150,000 236,620 160,380 282,480 359,420 70,070 872,350 116,785 132,848 365,083 70,078 684,794 5,196,670 37,480 37,480 5,196,670 32,479 32,479 2,977,191 58,380 58,380 (443,439) (501,819) 40,000 (60,000) (20,000) 38,380 248,402 286,782 40,000 (60,000) (20,000) 38,380 248,402 286,782 645,964 (75,000) 570,964 127,525 248,402 375,927 605,964 (15,000) 590,964 89,145 89,145 $ $ The accompanying notes are an integral part of the financial statements 24 $ 1,197,533 1 47,226 782,162 2,026,922 43,595 149,632 (5,663) (8) 187,556 5,001 5,001 2,219,479 $ To Table of Contents City of Casa Grande, Arizona Statement of Net Position Proprietary Funds June 30, 2013 Business-type Activities-Enterprise Funds Wastewater Water Wastewater Dev Fees ASSETS Current assets: Cash Investments Receivables, net of uncollectibles Prepaid Expense Inventories Total current assets Noncurrent assets: $ Capital assets: Land Buildings and improvements Machinery and equipment Less accumulated depreciation Total capital assets, net Total noncurrent assets Total assets 699,776 8,815 708,591 1,249,047 (549,367) 699,680 699,680 1,408,271 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding Total Deferred Outflows of Resources $ 1,217 7,275,433 1,613,662 8,890,312 $ 117,055,630 1,523,478 (23,122,770) 95,456,338 95,456,338 104,346,650 - LIABILITIES Current liabilities: Accounts payable Deposits held Accrued wages and benefits Accrued interest payable Due to other funds Compensated absences Capital leases Notes/Loans payable GO Bond/Excise tax revenue obligations Total current liabilities Noncurrent liabilities: Notes/Loans payable General obligation bond Excise tax revenue obligations Compensated absences Closure and postclosure liability Total noncurrent liabilities Total liabilities NET POSITION Net Investment in Capital Assets Restricted for: Debt service Construction Unrestricted Total net position $ 5,157 4,860,611 3,290 4,869,058 2,700,724 5,339,988 (258,078) 7,782,634 7,782,634 12,651,692 45,269 45,269 - 11,390 10,601 3,295 2,724 12,097 40,107 198,162 25,933 659,113 12,564 2,341,532 652,135 3,889,440 302,069 302,069 81,830 81,830 121,937 47,589,262 11,375,462 15,357 58,980,081 62,869,521 302,069 605,753 33,543,215 7,782,634 680,581 1,286,334 4,678,660 3,300,523 41,522,398 4,566,989 12,349,623 $ The accompanying notes are an integral part of the financial statements 25 $ To Table of Contents Governmental Activities Internal Service Funds Business-type Activities-Enterprise Funds Sanitation $ Golf Course 37,614 3,872,251 652,682 4,562,547 $ 138,496 8,826,741 (4,374,121) 4,591,116 4,591,116 9,153,663 $ 283,000 2,640,378 743,544 (1,368,055) 2,298,867 2,298,867 2,355,445 - $ 500 441 3,517 52,120 56,578 Total 744,264 16,008,736 2,281,966 52,120 19,087,086 $ 2,983,724 121,083,551 16,433,751 (29,672,391) 110,828,635 110,828,635 129,915,721 - 1,920,482 82,665 335,183 200,067 2,538,397 52,354 307,736 (323,268) 36,822 36,822 2,575,219 45,269 45,269 - 145,877 73,501 3,500 86,588 309,466 35,004 11,235 51,658 13,963 54,546 166,406 692,502 10,601 113,964 661,837 55,158 113,115 2,353,629 706,681 4,707,488 235,715 14,650 1,568 8,846 260,779 105,807 2,551,350 2,657,157 2,966,623 1,135,229 17,065 1,152,294 1,318,700 47,671,092 1,135,229 11,375,462 138,229 2,551,350 62,871,362 67,578,850 10,812 10,812 271,591 4,591,116 1,109,092 47,631,810 36,822 1,595,924 6,187,040 (72,347) 1,036,745 4,678,660 4,566,989 5,504,681 62,382,140 2,266,806 2,303,628 $ $ 26 $ To Table of Contents City of Casa Grande, Arizona Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds June 30, 2013 Business-type Activities-Enterprise Funds Wastewater Water Wastewater Dev Fees Operating revenues: Service fees Connection fees Department Insurance charges Rental Green fees Miscellaneous Total operating revenue $ 173,935 21,368 195,303 Operating expenses: Personal services Contractual services Materials and supplies Depreciation Closure and postclosure costs Total operating expenses 72,107 54,123 45,602 51,120 222,952 Operating income (loss) Nonoperating revenues (expense): Investment earnings Interest expense City sales tax Total nonoperating revenues (expense) Income (loss) before contributions and transfers Development Impact Fees Transfers in Transfers out Change in Fund Net Position Total Fund Net Position-beginning of year Total Fund Net Position-end of year $ $ $ 719,131 1,579,863 1,300,197 3,050,129 6,649,320 - 86,691 86,691 (27,649) (76,005) (3,429) (3,429) 17,948 (2,452,422) (2,434,474) 13,245 13,245 (31,078) (2,510,479) (73,446) (21,280) (52,358) 1,338,692 1,286,334 5,745,146 (3,268,423) (33,756) 41,556,154 41,522,398 545,163 (2,872,573) (2,400,856) 14,750,479 12,349,623 The accompanying notes are an integral part of the financial statements 27 6,535,153 6,630 31,532 6,573,315 $ (86,691) $ To Table of Contents Business-type Activities-Enterprise Funds Sanitation $ 6,151,881 4,580 6,156,461 Golf Course $ 2,311,252 1,104,030 777,383 729,387 29,711 4,951,763 $ 474,738 157,752 460,363 176,695 1,269,548 1,204,698 (272,285) 9,153 (2,231) 6,922 $ 133,957 860,577 2,729 997,263 Total 12,860,969 6,630 133,957 860,577 60,209 13,922,343 Governmental Activities Internal Service Funds $ 1,750,440 5,679,702 218,795 7,648,937 3,577,228 2,895,768 2,583,545 4,094,022 29,711 13,180,274 5,448,902 1,136,139 757,042 24,311 7,366,394 742,069 282,543 173 (29,857) 25,737 (3,947) 40,519 (2,487,939) 25,737 (2,421,683) 1,211,620 (276,232) (1,679,614) 282,543 2,035 (1,031,645) 182,010 6,005,030 6,187,040 223,760 (114,520) (166,992) 1,203,737 1,036,745 545,163 5,970,941 (7,308,441) (2,471,952) 64,854,092 62,382,140 (119,000) 163,543 2,140,085 2,303,628 $ $ 28 - $ To Table of Contents City of Casa Grande, Arizona Statement of Cash Flows Proprietary Funds June 30, 2013 Business-type Activities-Enterprise Funds Wastewater Water Wastewater Dev Fees CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees $ Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES City sales tax Transfers to other funds Transfers from other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets Proceeds from capital debt Contributions Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received Net cash provided by investing activities Net increase (decrease) in cash Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Cash Investments 196,360 (90,189) (68,812) $ 6,378,983 (3,396,455) (711,017) $ 541,873 302,069 - 37,359 2,271,511 (21,280) - (395,850) 2,872,573 (2,872,573) - (21,280) 2,476,723 (2,872,573) (24,380) (11,696) (3,429) (2,892,884) (2,572,504) (39,505) (5,054,014) 843,942 (253,016) 664,390 (482,354) - (482,354) - 17,948 13,245 - 17,948 13,245 (23,426) 723,202 (287,832) 7,564,482 (2,497,740) 7,363,508 $ 699,776 $ 7,276,650 $ 4,865,768 $ 699,776 699,776 $ 1,217 7,275,433 7,276,650 $ 5,157 4,860,611 4,865,768 $ The accompanying notes are an integral part of the financial statements 29 $ $ To Table of Contents Governmental Activities Internal Service Funds Business-type Activities-Enterprise Funds Sanitation $ 6,266,289 (2,235,715) (2,268,423) Golf Course $ 997,911 (565,203) (481,878) Total $ 14,381,416 (5,985,493) (3,530,130) $ 7,577,793 (2,302,997) (5,445,150) 1,762,151 (49,170) 4,865,793 (170,354) (1,031,645) 2,038 25,737 (114,520) 223,760 25,737 (4,435,868) 3,098,371 (119,000) (1,029,607) 134,977 (1,311,760) (119,000) (55,102) - - - (650,001) (2,231) (54,546) (31,267) (1,464,853) 664,390 (2,959,126) (2,609,431) (652,232) (140,915) (6,369,020) 9,153 173 40,519 - 9,153 173 40,519 - 89,465 3,820,400 (54,935) 55,876 (2,774,468) 19,527,468 (289,354) 2,209,836 $ 3,909,865 $ 941 $ 16,753,000 $ 1,920,482 $ 37,614 3,872,251 3,909,865 $ 500 441 941 $ 744,264 16,008,736 16,753,000 $ 1,920,482 1,920,482 $ $ $ 30 $ To Table of Contents City of Casa Grande, Arizona Statement of Cash Flows Proprietary Funds June 30, 2013 Business-type Activities-Enterprise Funds Wastewater Water Wastewater Dev Fees Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Closure and postclosure costs Depreciation expense (Increase) decrease in prepaid expense (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in deposits held Increase (decrease) in accrued wages Increase (decrease) in due to other funds Increase (decrease) in compensated absences Total adjustments Net cash provided (used) by operating activities $ (27,649) 51,120 157 9,536 900 3,295 - 37,359 The accompanying notes are an integral part of the financial statements (76,005) $ 3,050,129 (194,332) (149,153) 5,784 (367,242) 2,330 2,347,516 65,008 $ 31 $ $ 2,271,511 (86,691) 86,691 (3,290) 302,069 385,470 $ 298,779 To Table of Contents Business-type Activities-Enterprise Funds Sanitation $ 1,204,698 Golf Course $ 29,711 729,387 109,828 (357,802) 3,266 3,500 39,563 557,453 $ 1,762,151 (272,285) Total $ 176,695 (49,170) $ 29,711 4,094,022 (86,989) 5,438 (199,534) 900 11,403 (312,084) 35,695 3,578,562 648 5,438 (4,184) (942) 51,658 (6,198) 223,115 $ 742,068 Governmental Activities Internal Service Fund $ 4,320,630 32 282,543 24,311 (335,183) (71,144) 64,068 34,516 445 (173,217) 3,307 (452,897) $ (170,354) To Table of Contents City of Casa Grande, Arizona Statement of Fiduciary Net Position Fiduciary Funds June 30, 2013 Agency Funds ASSETS Cash Investments Mutual Funds $ Total assets 17,725 1,687,445 - Part-Time Firemen's Pension $ 1,705,170 LIABILITIES Other liabilities Total liabilities NET POSITION Held in trust for pension benefits and other purposes 467,992 1,705,170 - 1,705,170 - $ The accompanying notes are an integral part of the financial statements 33 2,158 465,834 - $ 467,992 To Table of Contents City of Casa Grande, Arizona Statement of Changes in Fiduciary Net Position Fiduciary Funds June 30, 2013 Part-Time Firemen's Pension ADDITIONS Contributions: Employer Plan members Total contributions $ Investment earnings: Misc Revenue Change in the fair value of Mutual Funds Total investment earnings Less investment expense Net investment earnings - 110 45,471 45,581 (202) 45,379 Total additions 45,379 DEDUCTIONS Pension payments Administrative expenses Total deductions 56,198 1,604 57,802 Change in net position (12,423) Net position-beginning of year Net position-end of year $ The accompanying notes are an integral part of the financial statements 34 480,415 467,992 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies The accounting policies and financial reporting practices of the City conform to accounting principles generally accepted in the United States of America 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. The following is a summary of the City’s significant accounting policies. (A) Reporting Entity The reporting entity of the City includes the following services as authorized by its charter: general government, public safety (police, court and fire), streets/transportation, public works, culture and recreation and economic development. In addition, the City owns and operates four major enterprise activities: wastewater system, sanitation operations, golf course and water system. Individual Component Units – Blended The Mission Royale Community Facilities District, Villago Community Facilities District, Copper Mountain Community Facilities District and Post Ranch Community Facilities District (the Districts) were formed for the purpose of acquiring or constructing public infrastructure in specific geographic areas of the City. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the City. Property owners in the designated areas are assessed for District taxes, and thus for the costs of operating the Districts. The City Council serves as the Board of Directors; however, the City has no liability for the District’s debt. For reporting purposes, the transactions of the Districts are combined together and included as governmental type funds as if they were part of the City’s operations. No separate financial statements were prepared for the Districts. (B) Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from Business-type activities, which rely on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segments 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 or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. A fund is considered a major fund if it meets several threshold tests based on size and proportionate share. (continued) 35 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (B) Government-wide and Fund Financial Statements (continued) Generally, the effect of interfund activity is removed from the government-wide financial statements. Net interfund activity and balances between governmental activities and business-type activities are shown in the government-wide financial statements. The “doubling up” effect of internal service fund activity is removed from the government-wide statements with the expenses shown in the various functions and segments on the Statement of Activities. (C) Basis of Presentation – Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures (expenses). The various funds are summarized by type in the combined financial statements. The City uses the following fund types: GOVERNMENTAL FUNDS General Fund - The General Fund is the chief operating fund of the City. It is used to account for all financial resources except for those required to be accounted for in another fund. Special Revenue Funds - The Special Revenue Funds are used to account for revenues derived from specific taxes, grants or other restricted revenue sources. City Ordinances or Federal and State Statutes specify the uses and limitations of each special revenue fund. The Special Revenue Funds presented as major funds in the basic financial statement are the Highway Users Fund, that accounts for the City’s share of tax revenues legally restricted to the maintenance of highways within the City’s boundaries and the Grant Fund, used to account for various grants. Debt Service Funds - Debt Service Funds account for the accumulation of resources for and the payment of general obligation long-term debt principal, interest and related costs. The General Obligation Debt Service Fund is a major fund presented in the basic financial statements. This fund accounts for the receipts of revenues from property taxes and payment of the all general obligation bonds. Capital Project Funds - Capital Project Funds account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). The Capital Replacement/Recreation/Development Fund is a major fund presented in the basic financial statements. This fund accounts for the replacement of fleet, recreation facilities construction and development of infrastructure. The System Development Fund collects fees to defray the costs of specific growth related development. (continued) 36 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (C) Basis of Presentation – Fund Accounting (continued) PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds account for operations financed and operated in a manner similar to private business enterprises - the intent of the governing body is for the costs of providing the specific service to the general public on a continuing basis be financed or recovered primarily through user charges. The enterprise funds presented as major funds in the basic financial statement are as follows: Water Fund - accounts for the Copper Mountain water related activities. Wastewater Fund - accounts for the activities of the wastewater treatment, operations and maintenance. Wastewater Development Fees Fund - impact fees pay their proportionate share for development of the wastewater system. Sanitation Fund - accounts for the operations of the City’s trash and landfill services. Golf Course Fund - accounts for the operations of the City’s public golf course. On the proprietary fund financial statements, operating revenues are those that flow directly from the operations of that activity, i.e. charges to customers or users who purchase or use the goods or services of that activity. Operating expenses are those that are incurred to provide those goods or services. Non-operating revenues and expenses are items like investment income and interest expense that are not a result of the direct operations of the activity. 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, generally on a cost-reimbursement basis. The City has two internal services funds: Equipment Mechanics is used to account for the maintenance and operations of City owned vehicles and Risk Management is used for self insurance activities. Each cost center is charged is proportional share of the cost for these services. FIDUCIARY FUNDS Fiduciary funds account for assets held by the City in a trustee or agency capacity on behalf of others and therefore are not available to support City programs. The reporting focus is upon net assets and changes in net assets and employs accounting principles similar to proprietary funds. Fiduciary Funds are not included in the government-wide financial statements since they are not assets of the City available to support City programs. Pension Trust Funds are used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post employment benefit plans, or other employee benefit plans. The City has one Pension Trust Fund to account for the activities of the part-time firemen’s pension plan. (continued) 37 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (C) Basis of Presentation – Fund Accounting (continued) Agency Funds account for assets the City holds as an agent for individuals, private organizations, other governments or other funds in a temporary custodial capacity. The City currently maintains two agency funds, one to account for deposits received from various businesses in order to conduct business within the City, and the other to account for employee deposits into a flexible spending plan. The two agency funds are aggregated in the statements. (D) Measurement Focus and Basis of Accounting Different measurement focuses are applied to governmental, proprietary and fiduciary funds. The governmental fund measurement focus is on determination of financial position and changes in financial position. Governmental funds focus on the flow of resources. The proprietary and pension fund measurement focus is on determination of net income, financial position, and changes in financial position. Agency funds are custodial in nature and do not measure results of operation or have a measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The modified accrual basis of accounting is followed by the governmental funds. Revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers revenues available if they are earned by June 30 and the revenue is expected to be collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. In applying the susceptible to accrual concept to intergovernmental revenues (grants, subsidies and shared revenues), the legal and contractual requirements of the numerous individual programs are used as guidance. There are essentially two types of these revenues. In one, monies must be expended on the specific purpose of the project before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures recorded. In the other legal and contractual arrangement, monies are virtually unrestricted as to purpose of expenditures and nearly irrevocable, i.e., revocable only for failure to comply with prescribed compliance requirements, e.g., equal employment opportunity. These resources are reflected as revenues at the time of receipt or earlier if they meet the criterion of availability. Licenses and permits, charges for services, fines, forfeitures and miscellaneous revenues are recorded as revenues when received. Investment interest is recorded as earned since they are measurable and available. City sales tax, collected by the State of Arizona and property taxes are accrued in the accounting period they become both measurable and available. (continued) 38 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (D) Measurement Focus and Basis of Accounting (continued) The portion of property tax levies available on June 30, 2013, are recorded as receivable, net of allowance for un-collectibles. The balance of the tax levy not collected within 60 days after yearend are reflected as deferred revenue. Notes receivables are recorded as revenue as installments are received. The balances of these receivables are reflected as deferred revenue. Direct loans made through Community Development Block Grants are reflected as a reserve in fund balance. All proprietary and pension funds are accounted for using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the accounting period in which they are earned and become measurable. Expenses are recorded in the accounting period incurred. The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (E) Budgetary Data (1) In the spring of each year, the City Manager submits to City Council an estimate of the expenditures necessary to conduct the affairs of the City for the fiscal year commencing July 1st. (2) The Council holds open work sessions relating to budget preparation. (3) After required public hearings are held, a budget for all governmental and proprietary funds (excluding internal service and pension funds) is legally enacted prior to the third Monday of July as required by Arizona Revised Statutes. The budget specifies expenditure amounts by activity with each Fund. (4) Transfer of budgeted amounts within a department can be authorized by the Director of Finance upon the City Manager’s approval unless the transfer involves a transfer from personal services. This type of budgetary transfer requires Council approval. Council approval is required for transfers of budgeted amounts from one department or fund to another. The original budget was amended for the year ending June 30, 2013. (5) All funds are subject to the comprehensive appropriated budget. (6) Encumbrances used by the City during the budget year. All appropriations lapse at fiscal year-end. Invoices for goods and services received on or before June 30 must be paid within 60 days of the fiscal year-end. (7) The budget for the City is adopted on a basis consistent with generally accepted accounting principles. (8) Under State statutes, certain annual expenditure limitations must be adhered to. (9) Several supplemental appropriations were necessary during the year. (10) Expenditures may not exceed budgeted appropriations at the total budget level. (continued) 39 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (F) Cash and Cash Equivalents Cash represents amounts in demand deposits and amounts held in trust by financial institutions. The funds held in trust are available to the City upon demand. Cash equivalents are defined as short-term (original maturities of three months or less), highly liquid investments that are 1) readily convertible to known amounts of cash and 2) so near maturity that they present insignificant risk of changes in value because of changes in interest rates. (G) Investments The City adheres to the Arizona Revised Statutes (A.R.S. §35-323) that governs the investment of City funds. Eligible investments include certificate of deposits in eligible depositories, interest bearing accounts in qualified banks, repurchase agreements, pooled investments by the State Treasurer, bonds of the U.S. Government that are guaranteed as to principal and interest, and bonds of the state, county, city, town or school district. The State’s investment pool is managed by the State Treasurer’s office. The pool is not required to register with the Securities and Exchange Commission under the 1940 Investments Advisors Act. The activity and performance of the pool is reviewed monthly by the State Board of Investment in accordance with A.R.S. §35-311. The Arizona State Treasurer issues a publicly available financial report that includes financial statements and required supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700 West Washington, Phoenix, Arizona 85007. In accordance with GASB Statement No. 31 “Accounting and Financial Reporting for Certain Investments and External Investment Pools,” the City records all its investments at fair value as defined in the statement. The Part-time Firemen’s Pension investments are valued from quoted market prices at year-end. (H) Inventories Inventories for governmental and proprietary funds consist primarily of expendable supplies. Governmental funds maintain inventories using the consumption method of accounting. All inventories are valued at cost, which approximates market, using the first-in/first-out method. Physical inventories are conducted at year-end for financial statements purposes. (continued) 40 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (I) Capital Assets Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Assets contributed (donated) to those funds are recorded by reference to historical costs of the donor if recently purchased or constructed, or if such records are not available, at estimated fair market value on the date of receipt. General government infrastructure capital assets include those assets acquired or constructed since 1980. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Depreciation of all assets is recorded and calculated using the straight-line method over the following estimated useful lives: Buildings ............................................................................ 40 years Sewer system ............................................................. 20 to 50 years Street system ............................................................. 20 to 30 years Building and facility improvements .................................... 20 years Streetlights and traffic control devices ................................ 20 years Other Improvements and landscaping ................................. 15 years Vehicles ....................................................................... 3 to 15 years Equipment ................................................................... 5 to 10 years Furniture and fixtures .................................................. 5 to 10 years Computers/software............................................................... 3 years (J) Compensated Absences Employees are entitled to accumulate vacation to a maximum allowable limit depending on the number of years of service. In the event of termination, an employee is reimbursed for the accumulated vacation leave. Different measurement focuses for governmental and proprietary funds were considered when determining the compensated absences liability. Because the measurement focus for proprietary funds is the determination of net income, current and long-term liabilities are recorded in the accounting records. The measurement focus for governmental funds is the flow of financial resources; expenditures for vacation time are accrued as current liabilities only if they have matured (i.e., unused reimbursable leave still outstanding following an employee’s resignation or retirement). (continued) 41 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (J) Compensated Absences (continued) City employees with less than ten years of service are granted non-vesting sick leave. Employees with ten or more years of service will be paid the unused accrued sick leave as follows: 10 – 15 years of service will receive 30% up to a maximum of 128 hours 15 – 19 years of service will receive 40% up to a maximum of 288 hours 20 or more years of service will receive 50% up to a maximum of 640 hours. Sick leave compensation is accounted for in the period in which the event takes place. (K) Long-term Obligations A distinction is made between proprietary fund long-term liabilities and governmental long-term debt. Governmental funds’ long-term obligations are recognized as a liability in the governmental funds when due and expected to be financed from expendable available financial resources. Longterm obligations expected to be financed from proprietary fund operations are accounted for in the fund as a long term liability. (L) Interfund Transactions Interfund transactions are categorized as loans, reimbursements, interfund services provided and used or transfers. Loans between funds are reported in the balance sheet of the borrowing and lending funds as a liability and receivable, respectively. Reimbursements are expenditures or expenses of one fund but are attributable to another fund. An example of this type of transaction is when one fund purchases a supply in which another fund uses, thus reimbursing the original funds expenditure/ expense. An interfund service is revenue to the fund providing the service and expenditure to the fund receiving the service. Other interfund transactions are classified as transfers. Transfers usually reflect ongoing operating subsidies between funds. (M) Fund Equity Reserves represent those portions of fund equity not appropriable for expenditures or legally segregated for a specific future use. (N) Fund Balance Policies In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based 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. Non-spendable and Restricted fund balances represent the restricted classifications and Committed, Assigned and Unassigned represent the unrestricted classifications. Non-spendable fund balance includes amounts that cannot be spent because it is not in a spendable form such as inventory or prepaid items. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors, grantors, contributors and laws and regulations of other governments. Committed fund balance is self-imposed limitations imposed at the highest level of decision making authority, the City Council. (continued) 42 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1: Summary of Significant Accounting Policies (continued) (N) Fund Balance Policies (continued) Council approval through the adoption of an Ordinance is required to commit resources or to rescind the commitment. Assigned fund balance represents limitations imposed by the City Council. 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, restricted resources are considered spent before unrestricted resources. Within fund balance committed is spent first and then assigned resources are used. For fund balance details by classification, see note 22 on page 62. (O) Implementation of New GASB Statements In December 2010, the GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. GASBS No. 62 incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. The City adopted GASBS No. 62 in fiscal year 2013. The adoption of GASBS No. 62 does not have any impact on the City’s financial statements. In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASBS No. 63 provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures. The statement of net assets is renamed the statement of net position and includes the following elements: assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. The City adopted GASBS No. 63 in fiscal year 2013. The adoption of GASBS No. 63 has impacted the presentation of the City’s financial statements. In March 2012, the GASB issued Statement No. 65, Items previously reported as assets and liabilities. GASBS No. 65 provided reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities, and other related disclosures. In addition, the reporting of such items should be limited to those instances identified by the Governmental Accounting Standards Board. Statement No. 65 also changes the determination of the major fund calculations and limits the use of the term deferred in financial statement presentation. Although the provisions of this Statement are effective for financial statements for periods beginning after December 15, 2012, the City elected to early implement it in fiscal year 2013. The adoption of GASBS No. 65 has impacted the presentation of the City’s financial statements. (continued) 43 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 2: Cash and Investments At year-end, the City had the following cash and investments: Cash Investments Restricted investments Total cash and investments $ 12,243,271 92,688,280 3,455,884 $108,387,435 Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, an entity will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The carrying amount of the City’s cash in bank totaled $12,243,271 and the bank balance was $14,041,231. Federal Depository Insurance covered the City’s deposits at June 30, 2013, to the extent of $250,000. Deposits of $13,791,231 were collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the City’s name. Casa Grande does not have a deposit policy for custodial credit risk. Cash and cash equivalents include restricted and unrestricted amounts as follows: Cash Investments Restricted investments Governmental Activities $11,479,124 74,526,264 3,455,884 $89,461,272 Business Activities $ 744,264 16,008,736 $16,753,000 Fiduciary Fund $ 19,883 2,153,279 $2,173,162 Total $ 12,243,271 92,688,279 3,455,884 $108,387,434 Investments The City’s policy is to invest unrestricted cash in the Local Government Investment Pool (LGIP), an investment pool managed by the State Treasurer’s Office that allows governments within the State to pool their funds for investment purposes. The LGIP is not registered with the Securities Exchange Commission under the 1940 Investment Advisors Act. The fair value of the City’s position is the same as the value of the pool shares. The State Board of Investment has oversight responsibilities of the investment pool pursuant to ARS 35-311. The pool’s investments include securities with the full faith and credit of the United State Government with a final maturity less than 24 months and variable-rate securities with final maturity less than 5 years. The dollar weighted average portfolio maturity is less than 180 days. Only securities backed by the full faith and credit of the U.S. Government may be purchased for this pool. The fair value balance of the pool at June 30, 2013 was $1.2 billion in assets. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. All investments have a remaining maturity of 12 months or less. Casa Grande has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. (continued) 44 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 2: Cash and Investments (continued) Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following table shows the actual rating as of year-end by investment type. Issuer LGIP Deutsche Bank American Funds Linsco/LPL Financial Western State Bank Wells Fargo Investment Type State Investment Pool Solar Panels Escrow Money Market Money Market/Mut Fnds Cert of Deposit Money Market Amount $91,977,445 2,556,640 11,440 454,394 245,000 899,244 $96,144,163 Ratings at year end Unrated $91,977,445 2,556,640 11,440 454,394 245,000 899,244 $96,144,163 Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer. Investments in any one issuer are as follows: Issuer LGIP Deutsche Bank Firefighter Pension: American Funds Linsco Western State Bank Wells Fargo NOTE 3: Investment Type State Investment Pool Solar Panels Escrow Money Market Money Market/Mut Fnds Cert of Deposit Money Market Reported Amount $91,977,445 2,556,640 11,440 454,394 245,000 899,244 $96,144,163 Cash with Fiscal Agent/Restricted Investments In November 2006, December 2008 and August 2010 the Villago Community Facilities District issued long-term revenue obligations. Certain resources set aside for repayment are classified as restricted cash on the statement of net assets and on the balance sheet because their use is limited by applicable bond covenants. Fund Type Capital - CFD Description of Designated Capital Infrastructure Balance at June 30, 2013 $301,429 (continued) 45 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 3: Cash with Fiscal Agent/Restricted Investments (continued) In April 2005, the Mission Royale Community Facilities District issued long-term revenue obligations. Certain resources set aside for repayment are classified as restricted cash on the statement of net assets and on the balance sheet because their use is limited by applicable bond covenants. Description of Designated Capital Sewer Line Fund Type Capital - CFD Balance at June 30, 2013 $597,815 In March 2013, the City entered into a lease agreement to finance solar panel parking structures to reduce energy consumption. Description of Designated Balance at Fund Type Capital June 30, 2013 Capital Solar Panels Escrow $2,556,640 NOTE 4: Receivables The following table is a summary of the City’s governmental activities receivables. Receivables: Taxes Accounts Interest Gross Receivables Less: allowance for uncollectible Net total General Highway Users Grant Subsidies Capital NonMajor Total $4,041,416 47,531 4,088,947 $578,025 578,025 $ 5,361 5,361 $425,951 425,951 $ 43,669 678,463 11,020 733,152 $5,089,061 731,355 11,020 5,831,436 (250) $4,088,697 $578,025 $5,361 $425,951 $733,152 (250) $5,831,186 The following table is a summary of the City’s business-type activities receivables. Receivables: Accounts Gross Receivables Less: allowance for uncollectible Net total Water Wastewater Sanitation Golf Course Total $8,815 8,815 $3,302,164 3,302,164 $1,813,317 1,813,317 $3,517 3,517 $5,127,813 5,127,813 $8,815 (1,685,212) $1,616,952 (1,160,635) $ 652,682 $3,517 (2,845,847) $2,281,966 Revenues of wastewater and sanitation are reported net of uncollectible amounts. Total uncollectible amounts related to revenues of the current period are as follows: Uncollectible related to wastewater Uncollectible related to sanitation Total uncollectible for current fiscal year $10,254 8,286 $18,540 (continued) 46 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 5: Direct Loans The City issues loans to provide housing for low-income families, which are funded by Community Development Block Grants from the U.S. Department of Housing and Urban Development through the Arizona Department of Commerce. These loans are paid back on a monthly basis and have varying terms and maturity dates. At June 30, 2013, there were 59 of these loans outstanding, totaling $495,180. NOTE 6: Property Taxes Arizona Revised Statutes require that property taxes be levied on or before the third Monday in August. Taxes are levied and collected by the Pinal County Treasurer on real and personal property. Real property taxes, payable in two installments, are due November 1 and May 1. Personal property taxes are billed throughout the year. Interest and penalties are assessed if a taxpayer fails to pay the tax within a period of time specified by law. Taxes are considered a lien against real property at the date of levy. The primary tax levy is limited to a 2% increase over the previous year’s maximum allowable primary levy plus an increased dollar amount due to a net gain in property not taxed the previous year. The primary levy is further limited in that the primary tax from all jurisdictions may not exceed 1% of the homeowner’s market value of the home. Secondary taxes are levied to retire voter approved general obligation bonds. The City’s 2012-2013 maximum primary levy limit was $3,353,780. The primary tax levy was $3,352,806. The City’s secondary tax levy was $2,264,194. Using the modified accrual basis of accounting, property tax revenue is recognized when it becomes both measurable and available to finance expenditures as of June 30, and expected to be collected within 60 days after year-end. Available means taxes due or past due at the end of the fiscal year. Deferred revenue includes the balance of the property tax levy that does not meet the accrual criteria. Property tax receivable and deferred revenue at June 30, 2013, are $37,348 and $259,813 respectively. (continued) 47 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 7: Capital Assets A summary of business-type activities property, plant and equipment at June 30, 2013 follows: Capital assets not being depreciated: Land Construction in progress Balance June 30, 2012 Additions & Adjustments $ $ 2,983,724 - - Disposals & Adjustments $ - Balance June 30, 2013 $ 2,983,724 - Capital assets being depreciated: Buildings & Improvements Machinery & Equipment Total Capital Assets 120,846,198 15,206,252 139,036,174 709,670 755,183 1,464,853 - 121,555,868 15,961,435 140,501,027 Less Accumulated Depreciation for: Buildings & Improvements Machinery & Equipment Total Accumulated Depreciation 19,846,252 5,732,117 25,578,369 3,206,126 887,895 4,094,021 - 23,052,378 6,620,012 29,672,390 Net Capital Assets $113,457,805 $(2,629,168) - $110,828,637 $ A summary of changes in governmental activities capital assets follows: Capital assets not being depreciated: Land Construction in progress Balance June 30, 2012 Adjustments & Additions $ $ 19,531,684 619,212 3,586,855 Adjustments & Disposals $ 619,212 Balance June 30, 2013 $ 19,531,684 3,586,855 Capital assets being depreciated: Buildings Improvements Heavy machinery & equipment Total General Capital Assets 66,280,043 208,341,151 23,946,639 318,718,729 717,135 11,575,800 2,454,049 18,333,839 30,148 54,800 2,794,705 3,498,865 66,967,030 219,862,151 23,605,983 333,553,703 Less Accumulated Depreciation for: Buildings Improvements Heavy machinery & equipment Total Accumulated Depreciation 11,986,866 86,317,796 17,001,567 115,306,229 2,152,474 10,687,859 2,013,213 14,853,546 (30,148) (54,800) (2,794,705) (2,879,653) 14,109,192 96,950,855 16,220,075 127,280,122 Total General Capital Assets $203,412,500 $3,480,293 $619,212 $206,273,581 (continued) 48 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 7: Capital Assets (continued) Depreciation Expense was charged to the functions/programs of the government as follows: Governmental Activities: General Government Public Safety Streets/Transportation Public Works Culture and Recreation Economic Development Internal Service Total Depreciation Expense Governmental Activities $ 615,681 2,307,710 8,688,176 1,482,281 1,489,050 246,337 24,311 $14,853,546 Business-type Activities: Water Wastewater Sanitation Golf Course Total Depreciation Expense Business-type Activities NOTE 8: $ 51,119 3,136,820 729,387 176,695 $4,094,021 Retirement and Pension Plans All full-time City employees are covered by one of two contributory retirement and pension plans, which are administered by the State of Arizona under State Statute. Part-time firefighters participate in the Casa Grande Part-time Firemen’s Pension Plan. The following summarizes each plan. (A) Arizona State Retirement Plan Plan Description. 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. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. ASRS issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at ASRS, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling 602-240-2200 or 1-800621-3778. (continued) 49 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 8: Retirement and Pension Plans (continued) (A) Arizona State Retirement Plan (continued) Funding Policy. The Arizona State Legislature has the authority to establish and amend benefits provisions and contributions for active plan members. For the year ended June 30, 2013, active ASRS members were each required by statute to contribute at the actuarially determined rate of 11.14% (10.90% retirement and 0.24% long-term disability) of the members’ annual covered payroll and the City was required by statute to contribute at the actuarially determined rate of 11.14% (10.25% retirement, .56% health insurance premium, and .24% long-term disability) of the members’ annual covered payroll. The City’s contributions to ASRS for the years ended June 30, 2013, 2012 and 2011 were $1,443,868, $1,393,482 and $1,310,650, respectively, which were equal to the required contributions for those years. Prior year’s rates are 10.74% for 2012 and 9.85% for 2011. The City contribution for the current year is as follows: June 30, 2013 Retirement & Health Insurance $1,412,916 Disability $30,952 Total $1,443,868 (B) Arizona Public Safety Personnel Retirement System Plan Description. The Public Safety Personnel Retirement System (PSPRS) is an agent multipleemployer 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 fivemember board, known as The Fund Manager, and 167 local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. The City contributes to one PSPRS plan for police and one for fire fighters. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. PSPRS issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at PSPRS, 1020 E. Missouri Avenue, Phoenix, Arizona 85014. Funding Policy - The Arizona State Legislature has the authority to establish and amend benefits provisions and contributions for active plan members. For the year ended June 30, 2013 active PSPRS members were required by statute to contribute 9.55% of the members’ annual covered payroll, and the City was required to contribute at the actuarially determined rate of 27.65% and 20.96% for covered payroll totaling $5,077,868 and $4,394,082 the plan for police and fire respectively. The City contributed the required amount. Schedule of Funding progress - An analysis of funding progress for each of the agent plans as of the most recent actuarial valuations, June 30, 2011 reporting period determines the rates for fiscal year 2013. For this valuation, fiscal years prior to 2008 (which were prior to the implementation of GASB Statement Nos. 43 and 45), the pension and health insurance benefit amounts were aggregated. In fiscal year 2008, GASB Statement Nos. 43 and 45 measurements are made and reported, these benefits are disaggregated and reported separately. The Health Insurance Subsidy payments reported for valuation year 2011 were $20,900 for the police plan and $18,200 for the fire plan. (continued) 50 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 8: (B) Retirement and Pension Plans (continued) Arizona Public Safety Personnel Retirement System Annual Pension Cost - The City’s pension cost for the year ended June 30, 2013, the date of the most recent actuarial valuation, and related information follow. Contribution Rates: City – retirement City – health insurance premium Plan members Annual pension cost Retirement Health insurance premium Pension contributions made Retirement Health insurance premium Actuarial valuation date Actuarial cost method Actuarial assumptions: Investment rate of return Projected salary increases Includes inflation at cost-of-living adjustment Amortization method Remaining amortization period Asset valuation method Post retirement benefit increases PSPRS-Police 26.51% 1.14% 7.65% PSPRS-Fire 20.14% 0.82% 7.65% $1,422,932 $ 61,190 $937,506 $ 38,171 $1,422,932 $ 61,190 June 30, 2011 Entry Age Normal $937,506 $ 38,171 June 30, 2011 Entry Age Normal 8.25% 5.0% - 8.0% 5.00% 8.25% 5.0% - 8.0% 5.00% Level Percent Closed 25 years underfunded 20 years overfunded 7-year smoothed market Based on Income Level Percent Closed 25 years underfunded 20 years overfunded 7-year smoothed market Based on Income Trend Information – Information of the PSPRS plan as of the most recent actuarial valuation follows: Annual Pension Cost (APC) Plan PSPRS – Police – Pension June 30, 2013 June 30, 2012 June 30, 2011 PSPRS – Police Insurance June 30, 2013 June 30, 2012 June 30, 2011 – Percentage of APC Contributed Net Pension Obligation $1,422,932 1,219,694 1,120,037 100.00% 100.00% 100.00% - $ 61,190 61,361 57,684 100.00% 100.00% 100.00% - $ 937,506 769,175 726,254 100.00% 100.00% 100.00% - $ 100.00% 100.00% 100.00% (continued) Health PSPRS – Fire - Pension June 30, 2013 June 30, 2012 June 30, 2011 PSPRS – Fire – Health Insurance June 30, 2013 June 30, 2012 June 30, 2011 51 38,171 37,873 35,502 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 8: Retirement and Pension Plans (continued) (B) Arizona Public Safety Personnel Retirement System (continued) Required Supplementary Information (unaudited) PSPRS – Police Pension Plan: Actuarial Valuation Date 6/30/11 6/30/10 6/30/09 Actuarial Actuarial Funding Value of Accrued Liability Plan Assets Liability (Excess) (a) (b) (b-a) 16,386,157 30,320,506 13,934,349 15,562,591 27,269,561 11,706,970 14,941,827 25,601,105 10,659,278 Funded Ratio (a/b) 54.0% 57.1% 58.4% Annual Covered Payroll (c) 5,077,868 5,079,289 5,045,343 Unfunded Liability as Percentage of Covered Payroll ([b-a]/c) 274.4% 230.5% 211.3% Funded Ratio (a/b) 0% 0% 0% Annual Covered Payroll (c) 5,077,868 5,079,289 5,045,343 Unfunded Liability as Percentage of Covered Payroll ([b-a]/c) 13.12% 10.35% 10.27% Funded Ratio (a/b) 59.9% 62.7% 62.7% Annual Covered Payroll (c) 4,394,082 4,250,258 4,130,364 Unfunded Liability as Percentage of Covered Payroll ([b-a]/c) 162.2% 137.5% 131.0% Funded Ratio (a/b) 0% 0% 0% Annual Covered Payroll (c) 4,394,082 4,250,252 4,130,364 Unfunded Liability as Percentage of Covered Payroll ([b-a]/c) 9.67% 7.9% 7.56% PSPRS – Police Health Insurance Plan: Actuarial Valuation Date 6/30/11 6/30/10 6/30/09 Actuarial Value of Plan Assets (a) 0 0 0 Actuarial Accrued Liability (b) 666,368 525,879 518,058 Funding Liability (Excess) (b-a) 666,368 525,879 518,058 Actuarial Actuarial Value of Accrued Plan Assets Liability (a) (b) 10,640,220 17,765,323 9,807,667 15,651,942 9,084,607 14,493,872 Funding Liability (Excess) (b-a) 7,125,103 5,844,275 5,409,265 PSPRS – Fire Pension Plan: Actuarial Valuation Date 6/30/11 6/30/10 6/30/09 PSPRS – Fire Health Insurance Plan: Actuarial Valuation Date 6/30/11 6/30/10 6/30/09 Actuarial Value of Plan Assets (a) 0 0 0 Actuarial Accrued Liability (b) 424,902 335,710 312,242 Funding Liability (Excess) (b-a) 424,902 335,710 312,242 (continued) 52 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 8: Retirement and Pension Plans (continued) (C) Casa Grande Part-time Firemen’s Pension Plan The Casa Grande Part-time Firemen’s Pension Plan is a single-employer defined contribution plan, which was approved by the City Council on August 21, 1989, under Arizona Revised Statutes Section 9-981. The authority to establish and amend benefit provisions rests with the City Council. In December 1999, the council revised the pension and benefit program for the part-time firefighters. The City discontinued using part-time firefighters as of December 31, 2005. The assets of the plan are valued annually and the earnings or loss is distributed among the participant’s accounts in the plan. The only expenditures being made from this fund are administration fees, retirement payments, and refunds to those firefighters who leave the service of the Fire Department before becoming eligible for pension benefits. The cost of administering the plan is financed from investment earnings. Retirement with full benefits can be at age fifty-five (55) or twenty years of credited service. This plan was fully vested as of June 30, 2005. As of June 30, 2013, there were 14 eligible employees participating in the plan. The plan is administered by The Innes Associates. As of June 30, 2013, the plan’s assets consisted of the following: Cash Money Market Funds Mutual Funds Total Assets $ 2,158 11,440 454,394 $467,992 The plan has never had an actuarial valuation; however, benefits cannot exceed plan assets. The market values of mutual funds are determined from readily available market quotations. The fund uses the accrual basis of accounting. Contributions are recognized when earned; benefits and refunds are expensed when incurred. NOTE 9: Risk Management The City operates with traditional commercial insurance programs against major losses in property, plant, equipment and liability. Administrative responsibility for the safety program, education and loss prevention resides with the Administrative Services Department. Insurance is procured on a competitive quotation basis, using the services of an independent broker as a consultant. The City processes all claims and evaluates their validity to determine if insurance reporting and investigation are warranted or if the claim can be resolved administratively. Claims settled administratively are paid from the funds where the claims occurred. During fiscal year 2013 there was no reduction in insurance coverage from prior years and settlements have not exceeded insurance coverage during any of the last three fiscal years. Liability for claims and judgments for June 30, 2013 is $0 and for June 30, 2012 is $0. (continued) 53 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 10: Capital Leases Leases at June 30, 2013, included the following: Governmental activities: Lease with option to purchase Public Works Facility. Quarterly installments of $74,375 including interest of 4.887%, due through May 9, 2020. $1,755,118 Lease with option to purchase Airport T-hangers. Quarterly installments of $20,972 including interest of 5.081%, due through August 20, 2013. 17,902 Lease to finance Energy Improvements. The lease qualifies as an Energy Conservation Bond where tax credits are available annually to reduce interest. Payments are due semi-annually at an interest rate of 4.25%, due through July 1, 2027. 2,730,000 Lease to finance Solar Panels. Payments are due semi-annually at an interest rate of 3.59%, due through April 2031. 3,328,600 Total Governmental Activities Capital Lease Obligation $7,831,620 The future minimum lease payments by year are: Fiscal Year Ending June 30, 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029-2031 Government Activities $675,714 782,915 787,835 797,054 807,005 3,226,830 2,640,160 696,255 Business-type Activities $ - Total $675,714 782,915 787,835 797,054 807,005 3,226,830 2,640,160 696,255 Total minimum lease payments Less: amount representing interest 10,413,768 (2,582,148) - 10,413,768 (2,582,148) Present value of future minimum lease payments Less: current portion Noncurrent portion 7,831,620 (358,867) $7, 472,753 - 7,831,620 (358,867) $7, 472,753 $ Leased Capital Assets The following is an analysis of the leased assets included in capital assets: Cost Accumulated Depreciation Net Balance Building and Improvements: Governmental Activities Assets $10,738,487 $(1,611,197) $9,127,290 Total Building and Improvement $10,738,487 $(1,611,197) $9,127,290 (continued) 54 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 11: Bond Debt A summary of long-term bond debt transactions for the year ended June 30, 2013, follows: Governmental Activities General obligation bonds Balance July 1, 2012 $27,575,463 Issued $ - Retired $670,454 Balance June 30, 2013 $26,905,009 Business-type Activities General obligation bonds $ 1,224,537 $ - $ 54,546 $ 1,169,991 Summarization of the long-term bond debt payable at June 30, 2013, follows: Bond Description General obligation Original Issue Amount $34,740,000 Amount of Installment $10,000 – 2,170,000 Interest Rate 3.50% - 5.80% Date of Final Payment 07/15/35 Total Bonds Outstanding The following table is a summary of the City’s future bond debt service requirements. Year Ending June30, 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029-2033 2034-2035 Governmental Activities General Obligation Bonds Bonds Interest $ 650,454 $ 1,263,651 1,237,009 655,454 1,209,432 765,454 1,175,446 786,818 1,136,620 881,817 5,037,537 5,341,358 3,641,833 7,263,654 1,885,042 8,210,000 164,500 2,350,000 $16,751,070 $26,905,009 Business Activities General Obligation Bonds Bonds Interest $ 54,546 $ 47,399 54,546 45,422 54,546 43,377 58,182 40,899 78,183 37,490 513,642 128,427 356,346 22,735 $1,169,991 $365,749 Total Bonds Interest $ 705,000 $ 1,311,050 710,000 1,282,431 820,000 1,252,809 845,000 1,216,345 960,000 1,174,110 5,855,000 5,165,964 7,620,000 3,664,568 8,210,000 1,885,042 2,350,000 164,500 $28,075,000 $17,116,819 1) Community Facilities Districts (CFDs), special purpose districts created specifically to acquire or construct public infrastructure within specified areas of the City, are authorized under state law to issue General Obligation (GO) bonds to be repaid by property taxes levied on property within the district. CFDs are created by petition to the City Council by property owners within the area to be covered by the district and debt may be issued only after approval of the voters within the district. (continued) 55 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 11: Bond Debt (continued) In April 2005 the Mission Royale Community Facilities District issued $1,335,000 of General Obligation bonds to finance the construction of a sewer line. These bonds will be repaid by the property owners within Mission Royale CFD. The bonds are obligations of the district only. The City has no obligation for the debt other than administration of the collection of property taxes and payment of the debt service on behalf of Mission Royale. Principal payments on the bond began in July, 2009. Villago Community Facilities District issued General Obligation bonds to finance construction of $455,000 in November 2006, $750,000 in December, 2008 and $2,200,000 in August, 2010. These bonds will be repaid by the property owners within Villago CFD. The bonds are obligations of the district only. The City has no obligation for the debt other than administration of the collection of property taxes and payment of the debt service on behalf of Villago. Principal payments on the bonds began in July, 2007 and 2009. 2) In June 2008 the City issued $11,000,000 of General Obligation bond debt to finance golf course improvements of $2,000,000, recreation center improvements of $1,500,000, construction of a new public safety building of $2,000,000, new fire station of $2,500,000 and new library of $3,000,000. The 20-year bond has interest rates ranging from 3.50% to 4.25%. Principal payments ranging from $2,170,000 to $675,000 are paid annually with interest paid semiannually on July 1 and January 1. 3) In July 2009 the City issued $19,000,000 of General Obligation bond debt to design and construct a new public safety facility. The 25-year bond has interest rates ranging from 4% to 5%. Principal payments ranging from $370,000 to $1,700,000 are paid annually on July 1, with payments beginning July 2010 and with interest paid semiannually on July and January 1. NOTE 12: Excise Tax Revenue Obligations On December 1, 2003, the City issued $18,120,000 of Excise Tax Revenue Obligations Series 2003. The 20-year revenue obligations have interest rates that range from 2.00 to 5.00 percent. Principal payments ranging from $780,000 to $1,600,000 are paid annually on April 1. $9,300,000 was used to finance the construction of a wastewater treatment plant. $8,820,000 was used to advance refund $4,560,000 of Series 1994 and $3,830,000 of Series 1995 Excise Tax Revenue Obligations with interest rates ranging from 4.35 to 6.00 and 5.00 to 6.20 percent, respectively. These bonds were advance refunded for maturities in 2017 to 2022. The present value savings was $868,776. In August, 2009 the City issued $18,800,000 in excise tax revenue obligations consisting of: $7,175,000 in tax exempt obligations to construct a new courthouse and make road improvements. The 20-year obligation has interest rates ranging from 4.4% to 4.9% with principal payments beginning April 1, 2024. $11,625,000 in taxable obligations constructed a multi-use sports complex. The 15-year obligation has interest rates ranging from 2.3% to 6.4% with principal payments beginning April 1, 2010. In 2012 the City issued Refunding obligations maturing in 2022. These bonds were issued to advance refund the 2003 issue. The interest rates range from 2% to 5%. The net refunding savings was $868,776. Debt service payments were reduced by $949,608. (continued) 56 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 12: Excise Tax Revenue Obligations (continued) The 2003, 2009, and 2012 revenue obligations are secured by a pledge of and first lien on all excise, transaction, franchise, privilege and business taxes, state shared sales and income taxes, fees for licenses and permits and state revenue sharing which the City presently or in the future validly imposes or receives from other entities. The following table summarizes the City’s future revenue obligation debt service requirements as of June 30, 2013: Year Ending June 30, 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029 NOTE 13: Governmental Activities Principal Interest 732,865 947,910 765,718 914,548 802,755 877,577 878,087 834,740 950,356 789,098 5,468,054 3,044,940 6,545,000 1,364,950 1,510,000 73,612 $17,652,835 $8,847,375 Business-type Activities Principal Interest 652,135 455,625 684,282 429,537 707,245 402,163 1,106,913 373,870 1,414,644 351,732 6,071,946 695,151 $10,637,165 $2,708,078 Total Principal Interest 1,385,000 1,403,535 1,450,000 1,344,085 1,510,000 1,279,740 1,985,000 1,208,610 2,365,000 1,140,830 11,540,000 3,740,091 6,545,000 1,364,950 1,510,000 73,612 $28,290,000 $11,555,453 WIFA Financing In January, 2009 the City of Casa Grande received financing from the Water Infrastructure Finance Authority (WIFA) of Arizona to finance a wastewater treatment plant expansion project which was completed in 2011. The original loan was authorized for a total of $62,555,540; however the final balance disbursed to the City of Casa Grande at June 30, 2013 is $59,224,517. The following schedule shows estimated payments based on the amount due of $49,930,794. Year Ending June 30, 2014 2015 2016 2017 2018 2019-23 2024-28 2029 Total Principal 2,341,532 2,435,873 2,534,014 2,636,109 2,742,318 15,460,676 18,836,517 2,943,755 $49,930,794 Interest 2,011,712 1,917,371 1,819,230 1,717,135 1,610,926 6,305,544 2,929,703 118,603 $18,430,224 The twenty year loan has an interest rate of 4.029%. Principal payments ranging from $2,390,542 to $4,497,459 are paid annually with interest paid semi-annually on October 1 and April 1. (continued) 57 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 14: Changes in Long-Term Obligations Governmental Activities: Balance July 1, 2012 Additions Reductions Compensated absences G.O. Bonds payable Excise tax revenue obligations Capital leases Bond premium Bond discount Total Governmental Activities $ 1,926,677 27,575,463 18,358,662 4,846,117 234,378 (332,150) $52,609,147 $ 998,460 3,328,600 $4,327,060 $(896,707) (670,454) (705,827) (343,097) (25,572) 22,389 $(2,619,268) Business-type Activities: Compensated absences Bond payable Capital leases Excise tax revenue obligations Notes payable (1) Loan payable – see note 13 Bond premium Postclosure Liability Total Business-type Activities Balance July 1, 2012 $ 215,648 1,224,537 11,266,338 105,622 51,554,128 1,537,877 2,521,639 $68,425,789 Additions $101,960 29,711 $131,671 Reductions $ (66,264) (54,546) (629,173) (11,695) (1,623,334) (151,673) $(2,536,685) Balance June 30, 2013 Amounts Due Within One Year $ 2,028,430 26,905,009 17,652,835 7,831,620 208,806 (309,761) $54,316,939 $ 912,793 650,454 732,865 358,867 $2,654,979 Balance June 30, 2013 $ 251,344 1,169,991 10,637,165 93,927 49,930,794 1,386,204 2,551,350 $66,020,775 Due Within One Year $ 113,115 54,546 652,135 12,097 2,341,532 $3,173,425 (1) In January, 2002 the Water Fund received financing from the Water Infrastructure Finance Authority of Arizona. The note is paid semi-annually until July 2019 with an interest rate of 3.437%. Compensated absences are liquidated when mature by the various operating funds accruing the liability. (continued) 58 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 15: Long-Term Debt The following summarizes the annual debt service requirements to maturity for all long-term debt excluding compensated absences, including interest of $28,672,272. Year Ending June 30, 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029-2033 2034-2035 NOTE 16: Governmental Activities Principal Interest $ 1,383,319 $ 2,211,561 1,421,172 2,151,557 1,568,209 2,087,009 1,664,905 2,010,186 1,832,173 1,925,718 10,809,412 8,082,477 13,808,654 5,006,783 9,720,000 1,958,654 2,350,000 164,500 $44,557,844 $25,598,445 Business-type Activities Principal Interest $ 706,681 $ 503,024 738,828 474,959 761,791 445,540 1,165,095 414,769 1,492,827 389,222 6,585,588 823,578 356,346 22,735 $11,807,156 $3,073,827 Total Principal $ 2,090,000 2,160,000 2,330,000 2,830,000 3,325,000 17,395,000 14,165,000 9,720,000 2,350,000 $56,365,000 Landfill Closure and Post closure Care Costs The U.S. Environmental Protection Agency and the Arizona Department of Environmental Quality require municipal solid waste landfill (MSWLF) owners and operators to provide for landfill closure and post closure care costs. The City of Casa Grande owns and operates one landfill. Closure and post closure care costs include cost of equipment expected to be installed and facilities expected to be constructed, cost of final cover and cost of monitoring and maintaining the expected useable MSWLF area. These costs are expected to be paid near or after the date that the MSWLF stops accepting solid waste and during the postclosure period. The Environmental Protection Agency has established the postclosure period to be 30 years. Closure and postclosure care costs are recognized in the current period based on landfill capacity used to date. On June 30, 2013 the City has reported a $2,551,350 landfill closure and postclosure care liability that represents the total current cost based on 46.0 percent of estimated capacity of the landfill. The remaining cost of $2,149,256 will be recognized in the future periods as the remaining capacity is filled. The City expects the remaining capacity to extend for 17 years, which will be through the year 2030. Total closure and postclosure costs are based on current costs, and are reevaluated annually for changes in inflation or deflation, technology, and applicable laws or regulations. The 2013 valuation of the total closure and postclosure costs were estimated to be $4,700,606. NOTE 17: Construction Commitments The City has two significant construction commitments as of June 30, 2013: The Main Library expansion and the Communication center expansion projects are outstanding. The contracts for both were awarded to Okland Construction Co for the aggregate amount of $2,882,350. The amounts paid through June 30, 2013 for the Main Library expansion is $175,001 and for the Communication Center expansion is $183,892, with an amount still outstanding of $2,523,457. (continued) 59 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 18: Summary of Inter fund Transactions Inter fund transactions as of June 30, 2013, were as follows: Inter fund Receivable/Payable: Fund General Construction Sales Tax Airport Wildland Fire System Development Performance Institute Housing Recreation Debt Service Airport Construction Golf Course Sanitation Internal Service Post CFD Total Receivable Amount $1,599,135 638,771 Payable Amount 558,725 2,946 638,771 534,553 99,469 3,060 341,656 51,658 3,500 1,568 2,000 $2,237,906 $2,237,906 The inter fund balances at June 30, 2013 are short-term loans to cover temporary cash deficits in various funds. Transfers: Transfers Out Fund Governmental Funds: General Highway Users System Development Capital Replacement GO Debt Grants Other Non-major Governmental Total Governmental Funds Enterprise Funds: Water Golf Course Wastewater Sanitation Total Enterprise Funds 2,796,267 503,130 1,185,014 623,484 5,786,655 1,678,076 20,000 2,887,071 645,964 2,012,044 7,243,155 21,280 114,520 6,140,996 1,031,645 7,308,441 223,760 5,745,146 2,035 5,970,941 119,000 $13,214,096 $13,214,096 103,760 Internal Service Fund Grand Totals Transfers In Transfers between funds are required to move cash as payment for services, or to move cash from fund where revenue is recorded to fund where cost is incurred. (continued) 60 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 19: Deficit in Fund Balance Three funds had deficits in fund balance. The HOME/HUD fund has a deficit of $39,875 because $39,875 is due from other governments was not received within 60 days of year end and is shown in deferred revenue. The Municipal Airport operating fund deficit increased by $144,440 to a total of $506,370. This increase continues to reflect reduced air traffic and rentals continued to be less than anticipated. The Municipal Airport is supported through fuel sales and hanger rentals. Also, the lease expense for T-hangers will be paid off in FY2014. 2009 Excise Recreation fund has a deficit balance of $3,060. This negative balance is due to a loan from the general fund to cover unanticipated arbitrage reporting expenses. Note 20: Sales Tax Incentive Agreement In March, 2006 the City entered a tax-incentive agreement with WP Casa Grande Retail LLC in order to develop the Promenade at Casa Grande mall. WP Casa Grande Retail is paid 50% of the retail sales and construction activities tax collected by the City from Promenade sales. The agreement only applies to the portion of tax that is not a dedicated or special tax. The agreement is in effect for twenty years up to a maximum payment of $19,950,000 plus interest of 7%. There is a provision to extend the agreement for an additional three years if the amount remaining unpaid after twenty years is $3,000,000 or more (including accrued but unpaid interest). Payments are made to WP Casa Grande Retail within forty-five days after the end of each calendar quarter for 50% of the uncommitted tax collected during that quarter. The first payment to WP Casa Grande Retail was made in September, 2008. As of June 30, 2013 $4,776,157 (including $2,696,255 in interest) has been paid. Note 21: Restatement The City adopted GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, in the current year. Accordingly, Cost of Issuance was eliminated and the beginning net position of the governmental type activities in the Statement of Activities were restated by $563,696 and the business type activities by $257,544 due to implementation of this accounting standard. (continued) 61 To Table of Contents C I T Y O F C A S A G R A N D E, A R I Z O N A NOTES TO FINANCIAL STATEMENTS June 30, 2013 Note 22: Fund Balance Details by Classification General Fund Major Funds Non-Major Funds $ $ Total Government Funds Fund Balances Nonspendable: Inventories Restricted: Highway Users System Development Community Services Transportation Capital Replacement/Dev. Grants Debt Service Court Enhancement Housing Funds Public Safety CFD Debt Downtown Revitalization Aesthetic Revitalization Economic Redevelopment Committed: Capital Project Assigned: General fund Capital Replacement/Dev. Wildland Fire/Public Safety Parks Development Promotion & Tourism Community Arts Development Unassigned: $ 6,264 - - 8,453,186 7,811,234 304,777 4,146,444 250,000 14,550,404 5,281,667 $24,539,556 $ 73,247 2,556,640 375,927 - 2,822,118 5,479,737 25,574 2,774,151 201,731 559,408 3,223,580 1,411,287 - 8,453,186 7,811,234 2,822,118 5,479,737 2,582,214 375,927 2,774,151 201,731 559,408 3,223,580 1,411,287 304,777 4,146,444 250,000 2,523,457 - 2,523,457 25,460,555 $47,180,999 62 66,983 14,810 913,899 59,516 16,308 1,178,452 (576,410) $18,171,144 14,550,404 25,460,555 14,810 913,899 59,516 16,308 1,178,452 4,705,257 $89,891,699 To Table of Contents To Table of Contents COMBINING STATEMENTS To Table of Contents City of Casa Grande, Arizona Combining Balance Sheet Non-Major Governmental Funds June 30, 2013 ASSETS Cash Investments Receivables (less allowance for uncollectibles) Due from other governments Due from other funds Inventory Restricted assets: cash and cash equivalents Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and other current liabilities Accrued wages and benefits Due to other funds Due to other funds Total liabilities Municipal Airport $ 50 - Parks Develop. $ 1,484 912,239 17,241 - 241 - 66,983 84,274 913,964 $ $ DEFERRED INFLOWS OF RESOURCES Deferred Revenue Total Deferred Inflows of Resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balance $ 28,763 3,153 558,725 590,641 $ $ 65 65 Special Revenue Community RedevelopArts ment $ 5,258 $ 130 11,051 1,223,744 - $ $ 16,308 - Promotion & Tourism $ 21,859 456,739 Court Enhancement $ 63,176 133,860 187,340 - 4,695 665,938 201,731 - $ $ 1,223,874 45,422 45,422 $ $ 10,159 534,553 544,712 $ $ - - - - - 61,710 - - - - - 61,710 - 66,983 (573,350) 913,899 - 16,308 - 1,178,452 - 59,516 - (506,367) 913,899 16,308 1,178,452 59,516 201,731 201,731 84,274 $ 913,964 63 $ 16,308 $ 1,223,874 $ 665,938 $ 201,731 To Table of Contents Housing Programs $ 11,943 118,199 $ 1,321 800 $ $ 132,263 31 - $ $ 31 $ CDBG 15,413 509,755 28,014 553,182 64,568 2,077 66,645 Special Revenue Self-help Technical Asst $ - $ $ 18,907 18,907 3 12,362 12,365 $ $ $ Wildland Fire/ Public Safety $ 6,052 14,305 Home/HUD 89,572 4,128 89,572 24,485 2,463 87,109 $ $ 89,572 504 4,692 2,946 8,142 Debt Service General 2009 Excise Obligation Recreation $ 2,630,819 $ 127,749 - $ $ 15,583 2,774,151 - - $ $ - 3,060 3,060 - 26,028 - 39,875 1,533 - - - 26,028 - 39,875 1,533 - - 132,232 - 460,509 - 6,542 - (39,875) - - 132,232 460,509 6,542 132,263 - $ 553,182 $ 18,907 $ 2,774,151 - - 14,810 - (39,875) 14,810 2,774,151 89,572 $ 24,485 (3,060) - $ 2,774,151 (3,060) $ - (continued) 64 To Table of Contents City of Casa Grande, Arizona Combining Balance Sheet Non-Major Governmental Funds June 30, 2013 ASSETS Cash Investments Receivables (less allowance for uncollectibles) Due from other governments Due from other funds Inventory Restricted assets: cash and cash equivalents Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and other current liabilities Accrued wages and benefits Due to other funds Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Revenue Total Deferred Inflows of Resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balance Community Services $ 1,156 2,820,962 Transportation $ 106,434 5,373,303 $ 2,822,118 $ 5,479,737 $ $ - - Capital Projects Public Community Facilities District Safety $ $ 512,372 3,239,226 $ 3,239,226 15,646 15,646 $ $ 1,671 899,244 1,413,287 2,000 2,000 Airport Improvement $ 5,849 - Total Nonmajor Governmental Funds $ 3,381,994 14,431,375 678,525 684,374 733,152 824,641 66,983 899,244 20,337,390 $ $ 146,457 341,656 488,113 $ $ 311,618 12,385 1,542,410 1,866,413 - - - - 170,687 - - - - 170,687 299,833 299,833 25,574 - 66,983 16,497,586 2,182,985 (576,410) 25,574 18,171,144 2,822,118 - 5,479,737 - 3,223,580 - 1,411,287 - 2,822,118 5,479,737 3,223,580 1,411,287 5,479,737 $ 3,239,226 $ 2,822,118 $ 65 - $ 1,413,287 $ 684,374 $ 20,337,390 To Table of Contents To Table of Contents City of Casa Grande, Arizona Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Year Ended June 30, 2013 REVENUES Taxes: Property taxes Sales Tax Intergovernmental revenues Charges for services Investment earnings Contributions and Donations Rental and sale of city property Miscellaneous Total revenues Municipal Airport $ EXPENDITURES Current: General government Public safety Culture and recreation Economic development Capital outlay Debt Service: Principal Interest and fiscal charges Total expenditures 906,724 - Parks Develop. $ 2,214 33,120 1 35,335 13,540 13,567 3,208 1,052,073 94,298 21,393 10,641 14,151 - 270,128 - 318,802 - 28,336 - 80,552 3,334 1,230,257 32,034 14,151 270,128 318,802 28,336 (266,920) 149,430 44,527 (143,760) (143,760) 5,670 53,846 59,516 326,619 (446,224) (119,605) (75,078) 276,809 201,731 3,301 OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning of year Fund balances - end of year 9,375 (33,500) (24,125) (144,440) (361,927) (506,367) 3,301 910,598 913,899 $ 66 27 (584) $ 5,000 5,000 4,416 11,892 16,308 $ 3,208 (266,920) 1,445,372 $ 1,178,452 $ Court Enhancement 202,605 613 1,109,942 (120,315) $ Promotion & Tourism 297,066 957 477 167,486 2,246 468,232 Excess (deficiency) of revenues over (under) expenditures $ Special Revenue Community RedevelopArts ment $ $ 11,633 60,520 710 72,863 $ To Table of Contents Housing Programs $ $ 31,550 6,747 227 CDBG $ 213,858 - Special Revenue Self Help Tech Asst $ 174,513 - Home/HUD $ 49,697 - Debt Service General 2009 Excise Obligation Recreation Wildland Fire/ Public Safety $ 88,915 35 $ 2,471,145 308 $ 3,444 41,968 65,852 279,710 174,513 49,697 26,437 115,387 2,471,453 - 2,634 - 324,789 - 174,294 - 89,572 - 84,155 - 6,447 - - 2,634 324,789 174,294 89,572 84,155 639,538 995,405 1,641,390 650,000 938,060 1,588,060 39,334 (45,079) 219 (39,875) 31,232 830,063 (1,588,060) 39,334 92,898 132,232 (45,079) 505,588 460,509 219 6,323 6,542 (39,875) (39,875) 31,232 (16,422) 14,810 (103,760) (103,760) 726,303 2,047,848 2,774,151 1,585,000 1,585,000 (3,060) (3,060) $ $ $ $ $ $ (continued) 67 To Table of Contents City of Casa Grande, Arizona Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Year Ended June 30, 2013 REVENUES Taxes: Property taxes Sales Tax Intergovernmental revenues Charges for services Investment earnings Contributions and Donations Rental and sale of city property Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Culture and recreation Economic development Capital outlay Debt Service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning of year Fund balances - end of year Community Services Capital Projects Public Community Transportation Safety Facility District Airport Improvement Total Nonmajor Governmental Funds $ $ $ $ 170,962 6,713 177,675 1,532,835 10,325 1,543,160 $ 319,864 7,989 327,853 $ 766,450 523 739 767,712 1,858,807 1,858,807 3,237,595 297,066 2,428,973 2,997,652 33,236 477 403,211 112,872 9,511,082 536 - - 390,709 282,915 12,704 - 816 2,113,891 1,370,875 503,200 36,080 881,384 2,501,745 536 - 673,624 100,000 249,614 362,318 2,114,707 1,470,090 2,186,413 8,949,787 177,139 1,543,160 (345,771) 405,394 (255,900) 561,295 177,139 2,644,979 $ 2,822,118 1,543,160 3,936,577 5,479,737 (345,771) 3,569,351 $ 3,223,580 405,394 1,005,893 1,411,287 86,050 86,050 (169,850) 195,424 25,574 2,012,044 (727,244) 1,284,800 1,846,095 16,325,049 18,171,144 $ 68 $ $ $ To Table of Contents City of Casa Grande, Arizona Combining Statement of Fiduciary Net Position All Agency Funds June 30, 2013 Flexible Spending Plan Fund Performance Bond Fund ASSETS Cash Investments, at fair value $ Total assets LIABILITIES Other liabilities Total liabilities NET POSITION Held in trust for other purposes 1,687,445 $ 17,725 - Total $ 17,725 1,687,445 1,687,445 17,725 1,705,170 1,687,445 17,725 1,705,170 1,687,445 17,725 1,705,170 $ - 69 $ - $ - To Table of Contents City of Casa Grande, Arizona Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 2013 Balance June 30, 2012 Performance Bond Fund Assets: Cash Investments Total Assets $ Liabilities: Other Liabilities Accounts Payable 1,631,654 1,631,654 Additions $ 252,432 125,714 378,146 Deductions $ (252,432) (69,923) (322,355) Balance June 30, 2013 $ 1,687,445 1,687,445 1,629,203 2,451 1,631,654 55,615 129,058 184,673 (128,882) (128,882) 1,684,818 2,627 1,687,445 20,880 20,880 181,072 181,072 (184,227) (184,227) 17,725 17,725 11,075 9,805 20,880 20,000 20,000 (20,000) (3,155) - 11,075 6,650 17,725 Totals - All Agency Funds Assets: Cash Investments Total Assets 20,880 1,631,654 1,652,534 433,504 125,714 559,218 (436,659) (69,923) (506,582) 17,725 1,687,445 1,705,170 Liabilities: Other Liabilities Accounts Payable Total Liabilities 1,640,278 12,256 1,652,534 75,615 129,058 204,673 (20,000) (132,037) (152,037) 1,695,893 9,277 1,705,170 Flexible Spending Plan Fund Assets: Cash Total Assets Liabilities: Other Liabilities Accounts Payable $ $ 70 $ $ To Table of Contents OTHER SUPPLEMENTARY INFORMATION To Table of Contents City of Casa Grande, Arizona General Fund Schedule of Expenditures - Legal Level Budget Compliance For the Year Ended June 30, 2013 Budgeted Amounts EXPENDITURES General Government Mayor and Council Personal services Other expenditures City Manager Personal services Other expenditures Attorney Personal services Other expenditures Clerk Personal services Other expenditures Finance Personal services Other expenditures Information Technology Personal services Other expenditures Administrative Services Personal services Other expenditures Public Safety Police Personal services Other expenditures Fire Personal services Other expenditures Court Personal services Other expenditures Animal Control Personal services Other expenditures Public Works Personal services Other expenditures Culture and Recreation Personal services Other expenditures Planning and Economic Development Personal services Other expenditures Capital Outlay Debt service Total expenditures Original $ $ 154,160 2,039,340 Final $ 157,480 1,841,590 Actual Amounts $ 147,094 1,016,804 Budget Variance $ 10,386 824,786 721,980 93,400 771,500 93,400 760,261 89,240 11,239 4,160 661,020 30,940 661,020 30,940 637,809 29,474 23,211 1,466 297,130 100,030 280,380 116,780 243,907 74,265 36,473 42,515 815,820 163,610 801,500 177,930 803,314 177,871 (1,814) 59 732,790 878,560 731,680 879,670 671,374 824,783 60,306 54,887 549,670 134,200 557,970 154,550 526,519 94,995 31,451 59,555 10,322,080 1,745,270 10,127,060 1,905,780 10,464,144 1,928,421 (337,084) (22,641) 5,751,720 991,610 5,705,610 1,037,670 5,810,531 990,297 (104,921) 47,373 446,720 165,400 448,640 158,600 455,579 130,140 (6,939) 28,460 231,370 74,760 231,370 78,640 236,983 78,416 (5,613) 224 1,162,960 1,022,660 1,162,960 1,026,100 1,119,618 890,178 43,342 135,922 3,285,800 2,110,010 3,281,950 2,150,610 3,136,802 2,072,265 145,148 78,345 1,490,880 106,850 174,000 82,840 36,537,580 1,479,290 116,640 113,570 84,200 36,365,080 1,399,208 111,381 0 84,193 35,005,866 80,082 5,259 113,570 7 1,359,214 $ 71 $ $ To Table of Contents City of Casa Grande, Arizona System Development Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual June 30, 2013 Budgeted Amounts REVENUES Charges for services Investment earnings Total revenues $ EXPENDITURES General government Culture and recreation Capital outlay Total expenditures 230,000 (647,800) (417,800) Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES ( USES) Transfers out Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Original (678,000) (9,850) (687,850) (270,050) $ (270,050) 9,033,035 8,762,985 72 $ Final (678,000) (9,850) (687,850) Actual Amounts $ 167,878 21,147 189,025 230,000 (1,745,040) (1,515,040) 5,330 181,174 39,307 225,811 827,190 (1,185,010) (1,185,010) (357,820) 9,033,035 $ 8,675,215 $ Variance with Final Budget$ 845,878 30,997 876,875 (5,330) 48,826 (1,784,347) (1,740,851) (36,786) (863,976) (1,185,014) (1,185,014) (1,221,800) 9,033,035 7,811,235 (4) (4) (863,980) (863,980) $ To Table of Contents City of Casa Grande, Arizona Municipal Airport Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Investment earnings Charge for service Rental and sale of city property Miscellaneous Total revenues EXPENDITURES Current: General government: Personal services Contractual services Materials and supplies Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Proceeds from obligations Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year 1,722,000 225,000 2,000 1,949,000 Actual Amounts $ 906,724 202,605 613 1,109,942 Variance with Final Budget $ (815,276) (22,395) (1,387) (839,058) 166,960 77,090 1,514,660 1,211,000 91,780 3,061,490 166,960 78,260 1,480,190 1,244,300 91,780 3,061,490 105,792 78,071 868,210 94,298 83,886 1,230,257 (61,168) (189) (611,980) (1,150,002) (7,894) 1,831,233 (1,111,490) (1,112,490) (120,315) 10,000 (33,500) 1,150,000 1,126,500 15,010 (361,927) (346,917) 10,000 (33,500) 1,150,000 1,126,500 14,010 (361,927) (347,917) 9,375 (33,500) (24,125) (144,440) (361,927) (506,367) Original $ 1,722,000 226,000 2,000 1,950,000 $ 73 Final $ $ $ 992,175 $ (625) (1,150,000) (1,150,625) (158,450) (158,450) To Table of Contents City of Casa Grande, Arizona Parks Development Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Investment earnings Rental and sale of City property Miscellaneous Total revenues EXPENDITURES Contractual services Contractual services Materials and supplies Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year 500 36,000 25,000 61,500 Actual Amounts $ 2,214 33,120 1 35,335 100,000 100,000 330 21,070 78,600 100,000 327 21,066 10,641 32,034 3 4 67,959 67,966 (38,500) (38,500) 3,301 41,801 Original $ 500 36,000 25,000 61,500 $ 910,598 872,098 74 Final $ $ 910,598 872,098 $ 910,598 913,899 Variance with Final Budget $ 1,714 (2,880) (24,999) (26,165) $ 41,801 To Table of Contents City of Casa Grande, Arizona Community Arts Reserve Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts Final 15,000 15,000 Actual Amounts $ 13,540 27 13,567 Variance with Final Budget $ (1,460) 27 (1,433) 7,700 15,000 22,700 14,140 15,440 7,260 36,840 14,143 8 14,151 (3) 15,432 7,260 22,689 Excess (deficiency) of revenues over (under) expenditures (7,700) (21,840) OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year 5,000 5,000 (2,700) 11,892 9,192 5,000 5,000 (16,840) 11,892 (4,948) REVENUES Contributions and Donations Investment earnings Total revenues Original $ 15,000 15,000 EXPENDITURES Current: Contractual services Materials and supplies Capital outlay Total expenditures $ 75 $ $ (584) $ 5,000 5,000 4,416 11,892 16,308 21,256 $ 21,256 21,256 To Table of Contents City of Casa Grande, Arizona Redevelopment/Downtown Revitalization Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Investment earnings Total revenues Original $ - EXPENDITURES Current: Economic development: Contractual services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year $ Final $ - Actual Amounts $ 3,208 3,208 Variance with Final Budget $ 3,208 3,208 245,000 245,000 245,000 245,000 270,128 270,128 (25,128) (25,128) (245,000) (245,000) (266,920) (21,920) 1,445,372 1,200,372 76 $ 1,445,372 1,200,372 $ 1,445,372 1,178,452 $ (21,920) To Table of Contents City of Casa Grande, Arizona Performance Institute / Promotion and Tourism Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Local taxes Miscellaneous Facility Use Contributions Investment earnings Total revenues EXPENDITURES Contractual services Materials & supplies Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers out Total other financing uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Final 190,000 100 190,100 Actual Amounts $ 297,066 2,246 167,486 477 957 468,232 100,000 100,000 100,000 100,000 111,786 207,016 318,802 (11,786) (207,016) (218,802) 90,100 90,100 149,430 59,330 (143,760) (143,760) (53,660) 53,846 186 (143,760) (143,760) - 90,100 53,846 143,946 5,670 53,846 59,516 (84,430) (84,430) Original $ 190,000 100 190,100 $ 77 $ $ $ Variance with Final Budget $ 107,066 2,246 167,486 477 857 278,132 $ To Table of Contents City of Casa Grande, Arizona Court Enhancement/Probationary Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental Charges for services Change in fair value of investments Investment earnings Total revenues EXPENDITURES Current: Public safety: Personal services Contractual services Materials and supplies Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers in Transfers out Total other financing uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year 130 56,130 Final 15,000 41,000 130 56,130 Actual Amounts $ 11,633 60,520 710 72,863 24,000 24,000 22,170 9,900 30,240 62,310 18,436 9,900 28,336 3,734 30,240 33,974 32,130 (6,180) 44,527 50,707 32,130 276,809 308,939 (211,260) (211,260) (217,440) 276,809 59,369 Original $ 15,000 41,000 $ 78 $ $ $ 326,619 (446,224) (119,605) (75,078) 276,809 201,731 Variance with Final Budget $ (3,367) 19,520 580 16,733 $ 326,619 (234,964) 91,655 142,362 142,362 To Table of Contents City of Casa Grande, Arizona Housing Application and Development Fees Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Charges for service Intergovernmental Investment earnings Loan fees Total revenues EXPENDITURES Current: Economic development: Personal services Contractual services Materials and supplies Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year 500 (2,000) 500 Actual Amounts $ 6,747 31,550 227 3,444 41,968 Variance with Final Budget $ 6,247 31,550 227 5,444 43,468 500 500 50 2,530 30 2,610 52 2,556 26 2,634 (2) (26) 4 (24) (2,000) (2,110) 39,334 43,444 Original $ 500 (2,000) (1,500) $ 92,898 90,898 79 Final $ $ 92,898 90,788 $ 92,898 132,232 $ 43,444 To Table of Contents City of Casa Grande, Arizona Community Development Block Grant Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenues Program income Total revenues EXPENDITURES Community development Personal services Contractual services Materials and supplies Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year Final 185,900 185,900 Actual Amounts $ 213,858 65,852 279,710 Variance with Final Budget $ 27,958 65,852 93,810 203,080 21,950 225,030 36,140 317,780 3,010 356,930 38,334 283,344 3,111 324,789 (2,194) 34,436 (101) 32,141 (39,130) (171,030) (45,079) Original $ 185,900 185,900 $ 505,588 466,458 80 $ $ 505,588 334,558 $ 505,588 460,509 125,951 $ 125,951 To Table of Contents City of Casa Grande, Arizona Self-Help Technical Assistance Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenues Total revenues Original $ - EXPENDITURES Community development Personal services Contractual services Materials and supplies Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year $ Final $ - - 168,200 220 5,980 174,400 - (174,400) 6,323 6,323 6,323 $ (168,077) 81 Actual Amounts $ 174,513 174,513 Variance with Final Budget $ 174,513 174,513 168,204 214 5,876 174,294 (4) 6 104 106 219 $ 6,323 6,542 174,619 $ 174,619 To Table of Contents City of Casa Grande, Arizona Home/HUD Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenues Total revenues $ EXPENDITURES Community development Personal services Contractual services Materials and supplies Total expenditures $ 330,000 330,000 Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year Original 330,000 330,000 Actual Amounts $ 49,697 49,697 9,480 77,400 86,880 - $ Final 330,000 330,000 12,172 77,400 89,572 243,120 - $ 82 243,120 Variance with Final Budget $ (280,303) (280,303) (2,692) (2,692) (39,875) $ (39,875) (282,995) $ (282,995) To Table of Contents City of Casa Grande, Arizona Wildland Firefighting/Public Safety Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenue Investment earnings Contributions Total revenues Original $ 150,000 18,000 168,000 EXPENDITURES Current: Wildland firefighting Public safety activities Total expenditures 150,000 18,000 168,000 Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning of year Fund balance - end of year $ (16,422) (16,422) 83 Actual Amounts $ 88,915 35 26,437 115,387 150,000 18,780 168,780 - $ Final 150,000 18,000 168,000 (780) $ (16,422) (17,202) $ Variance with Final Budget $ (61,085) 35 8,437 (52,613) 66,534 17,621 84,155 83,466 1,159 84,625 31,232 32,012 (16,422) 14,810 $ 32,012 To Table of Contents City of Casa Grande, Arizona General Obligation Bond Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Property tax Investment earnings Total revenues Original $ 2,264,000 2,264,000 EXPENDITURES Current: Contractual services Debt Service Principal retirement Interest Total expenditures - Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers Out Total other financing uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ $ Final 2,264,000 2,264,000 Actual Amounts $ 2,471,145 308 2,471,453 - Variance with Final Budget $ 207,145 308 207,453 6,447 (6,447) (68,538) 50,605 (24,380) 571,000 1,046,010 1,617,010 571,000 1,046,010 1,617,010 639,538 995,405 1,641,390 646,990 646,990 830,063 183,073 (103,760) (103,760) 543,230 2,047,848 2,591,078 (103,760) (103,760) 543,230 2,047,848 2,591,078 (103,760) (103,760) 726,303 2,047,848 2,774,151 183,073 183,073 84 $ $ $ To Table of Contents City of Casa Grande, Arizona Recreation Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Total revenues Original $ - EXPENDITURES Current: Contractual services Debt Service: Principal retirement Interest Total expenditures $ - Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES Transfers in Total other financing uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Final $ - Actual Amounts $ - Variance with Final Budget $ - 4,200 4,200 - 650,000 933,860 1,583,860 650,000 933,860 1,588,060 650,000 933,860 1,588,060 - (1,583,860) (1,588,060) (1,588,060) - 1,585,000 1,585,000 1,140 1,140 1,585,000 1,585,000 (3,060) (3,060) 1,585,000 1,585,000 (3,060) (3,060) - 85 $ $ $ To Table of Contents City of Casa Grande, Arizona Capital Replacement/Recreation/Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Investment earnings Miscellaneous revenue Construction sales tax Total revenues EXPENDITURES Contractual services Lease Purchase Principal & Interest Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Proceeds from obligations Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Final 10,200 4,370,000 4,380,200 Actual Amounts $ 67,785 266,165 2,138,075 2,472,025 Variance with Final Budget $ 57,585 266,165 (2,231,925) (1,908,175) 235,240 37,002,000 37,237,240 34,470 204,340 34,776,060 35,014,870 34,475 171,828 4,508,121 4,714,424 (5) 32,512 30,267,939 30,300,446 (34,027,040) (30,634,670) (2,242,399) 28,392,271 1,615,800 (1,260,000) 36,000,000 36,355,800 2,328,760 27,067,379 29,396,139 1,615,800 (1,260,000) 36,000,000 36,355,800 5,721,130 27,067,379 32,788,509 2,887,071 (500,000) 3,328,600 5,715,671 3,473,272 27,067,379 $ 30,540,651 Original $ 10,200 3,200,000 3,210,200 $ 86 $ $ 1,271,271 760,000 (32,671,400) (30,640,129) (2,247,858) $ (2,247,858) To Table of Contents City of Casa Grande, Arizona Community Services Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Charges for Services Investment earnings Total revenues Original $ 4,550 4,550 EXPENDITURES Culture and recreation Capital Outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ Final $ 4,550 4,550 Actual Amounts $ 170,962 6,713 177,675 Variance with Final Budget $ 170,962 2,163 173,125 536 536 (536) (536) 2,000,000 2,000,000 - (1,995,450) 4,550 177,139 172,589 (1,995,450) 2,644,979 649,529 4,550 2,644,979 2,649,529 177,139 2,644,979 $ 2,822,118 172,589 172,589 87 $ $ To Table of Contents City of Casa Grande, Arizona Transportation Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Charges for Services Investment earnings Total revenues Original $ 6,650 6,650 EXPENDITURES Road Network and Interchanges Capital Outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ Final $ 6,650 6,650 Actual Amounts $ 1,532,835 10,325 1,543,160 Variance with Final Budget $ 1,532,835 3,675 1,536,510 - 312,230 312,230 6,650 (305,580) 1,543,160 1,848,740 6,650 3,936,577 3,943,227 (305,580) 3,936,577 3,630,997 1,543,160 3,936,577 $ 5,479,737 1,848,740 1,848,740 88 $ - 312,230 312,230 $ To Table of Contents City of Casa Grande, Arizona Public Safety Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Charges for Services Investment earnings Total revenues EXPENDITURES Public Safety Capital Outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Original $ 6,650 6,650 Final $ 6,650 6,650 Actual Amounts $ 319,864 7,989 327,853 Variance with Final Budget $ 319,864 1,339 321,203 282,915 282,915 - - 390,709 282,915 673,624 6,650 6,650 (345,771) 38,288 6,650 3,569,351 $ 3,576,001 6,650 3,569,351 $ 3,576,001 (345,771) 3,569,351 3,223,580 38,288 38,288 89 $ $ To Table of Contents City of Casa Grande, Arizona Community Facilities Districts - Capital Projects Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Property Tax Developer Contribution Investment Earnings Total revenues EXPENDITURES Contractual services Capital outlay Debt Service Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Bond issuance Total other financing sources and uses Net change in fund balance Fund balance - beginning of year Fund balance - end of year Final 461,000 461,000 Actual Amounts $ 766,450 739 523 767,712 Variance with Final Budget $ 305,450 739 523 306,712 15,000 10,000,000 332,480 16,640 9,998,360 266,450 12,704 349,614 3,936 9,998,360 (83,164) 10,347,480 10,281,450 362,318 9,919,132 (9,886,480) (9,820,450) 405,394 10,225,844 10,000,000 10,000,000 113,520 1,005,893 $ 1,119,413 10,000,000 10,000,000 179,550 1,005,893 $ 1,185,443 405,394 1,005,893 1,411,287 (10,000,000) (10,000,000) 225,844 $ 225,844 Original $ 461,000 461,000 90 $ $ To Table of Contents City of Casa Grande, Arizona Airport Improvement Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2013 Budgeted Amounts REVENUES Intergovernmental revenues Total revenues Original $ 8,592,000 8,592,000 EXPENDITURES Contractual services Capital outlay Total expenditures 8,592,000 8,592,000 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - beginning of year Fund balance - end of year $ - $ 195,424 (3,432,876) 91 Final 8,592,000 8,592,000 Actual Amounts $ 1,858,807 1,858,807 Variance with Final Budget $ (6,733,193) (6,733,193) 8,579,950 8,579,950 816 2,113,891 2,114,707 (816) 6,466,059 6,465,243 12,050 $ 12,050 195,424 (3,424,726) $ (255,900) (267,950) 86,050 86,050 (169,850) 195,424 25,574 86,050 86,050 (181,900) (181,900) $ To Table of Contents City of Casa Grande, Arizona Copper Mountain Ranch Water Enterprise Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget Basis For the Year Ended June 30, 2013 Budgeted Amounts Original OPERATING REVENUES: Service fees Miscellaneous Total operating revenues $ OPERATING EXPENSES: Personal services Contractual Materials and supplies Capital outlay Depreciation Total operating expenses 211,000 211,000 Actual Amounts Final $ 211,000 211,000 $ 173,935 21,368 195,303 Variance with Final Budget $ 78,600 130,100 67,300 100,500 376,500 78,600 110,100 65,690 100,500 354,890 (165,500) (143,890) (909) 142,981 NONOPERATING REVENUE (EXPENSES): Interest expense Total nonoperating revenue (expense) (13,920) (13,920) (3,430) (3,430) (3,429) (3,429) 1 1 Income (loss) before transfers (179,420) (147,320) (4,338) 142,982 (21,280) (21,280) (21,280) (200,700) (168,600) (25,618) Operating Income Transfers out Net change in Fund Balance Fund Balance - beginning of year Fund Balance - end of year $ 1,338,692 1,137,992 92 $ 1,338,692 1,170,092 72,107 54,123 45,602 24,380 196,212 (37,065) 21,368 (15,697) $ 1,338,692 1,313,074 6,493 55,977 20,088 76,120 158,678 142,982 $ 142,982 To Table of Contents City of Casa Grande, Arizona Wastewater Enterprise Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget Basis For the Year Ended June 30, 2013 Budgeted Amounts Original OPERATING REVENUES: Service fees Connection fees Miscellaneous Total operating revenues OPERATING EXPENSES: Personal services Contractual Materials and supplies Capital outlay Depreciation Total operating expenses $ 6,542,000 5,000 120,000 6,667,000 Actual Amounts Final $ $ 6,535,153 6,630 31,532 6,573,315 $ (6,847) 1,630 (88,468) (93,685) 742,470 2,212,620 1,298,660 1,687,840 5,941,590 719,131 1,579,863 1,300,197 253,016 3,852,207 23,339 632,757 (1,537) 1,434,824 2,089,383 (24,260) 725,410 2,721,108 1,995,698 (7,100) (4,842,560) (4,849,660) (7,100) (5,592,230) (5,599,330) 17,948 (2,452,422) (2,434,474) 25,048 3,139,808 3,164,856 (4,873,920) (4,873,920) Capital contributions Bond issuance Transfers in Transfers out 2,600,000 2,258,350 (2,629,200) 2,600,000 2,258,350 (3,268,420) 5,745,146 (3,268,423) (2,600,000) 3,486,796 (3) Excess (deficiency) of revenues Net change in Fund Balance (2,644,770) (3,283,990) 2,763,357 6,047,347 Operating Income NONOPERATING REVENUE (EXPENSES): Interest income Interest expense Total nonoperating revenue (expense) Income (loss) before contributions and transfers Fund Balance - beginning of year Fund Balance - end of year 791,800 2,123,510 1,335,950 2,440,000 6,691,260 6,542,000 5,000 120,000 6,667,000 Variance with Final Budget 41,556,154 $ 38,911,384 93 $ 41,556,154 38,272,164 286,634 $ 41,556,154 44,319,511 5,160,554 $ 6,047,347 To Table of Contents City of Casa Grande, Arizona Wastewater Development Fees Enterprise Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget Basis For the Year Ended June 30, 2013 Budgeted Amounts Original OPERATING REVENUES: Fees Total operating revenues $ OPERATING EXPENSES: Capital outlay Depreciation Total operating expenses Operating Income NONOPERATING REVENUE : Development Impact Fees Interest income Total nonoperating revenue Income (loss) before transfers Transfers out Net change in Fund Balance Fund Balance - beginning of year Fund Balance - end of year $ - Actual Amounts Final $ - $ - Variance with Final Budget $ - 3,814,000 3,814,000 3,174,780 3,174,780 482,354 482,354 (2,692,426) (2,692,426) (3,814,000) (3,174,780) (482,354) 2,692,426 150,050 (4,000) 146,050 150,050 (4,000) 146,050 545,163 13,245 558,408 395,113 17,245 412,358 (3,667,950) (3,028,730) 76,054 3,104,784 (2,233,350) (2,872,570) (2,872,573) (3,667,950) (5,901,300) (2,796,519) 14,750,479 11,082,529 94 $ 14,750,479 8,849,179 $ 14,750,479 11,953,960 (3) 3,104,781 $ 3,104,781 To Table of Contents City of Casa Grande, Arizona Sanitation/Development Enterprise Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget Basis For the Year Ended June 30, 2013 Budgeted Amounts Original OPERATING REVENUES: Service fees Recycling revenue Impact fees Miscellaneous Total operating revenues $ OPERATING EXPENSES: Personal services Contractual Materials and supplies Capital outlay Depreciation Closure and postclosure costs Total operating expenses $ 2,524,340 1,366,700 829,900 6,663,450 150,000 11,534,390 Operating Income NONOPERATING REVENUE (EXPENSES): Interest income Interest expense Total nonoperating revenue (expense) Income before transfers Transfers in Transfers out Net change in Fund Balance Fund Balance - beginning of year Fund Balance - end of year 6,137,000 250,000 5,020,000 11,407,000 $ 6,137,000 250,000 5,020,000 11,407,000 (125,160) (1,000) (2,240) (3,240) (1,000) (2,240) (3,240) (130,630) (128,400) 735,000 (1,029,610) 735,000 (1,029,610) (1,160,240) (1,158,010) 95 $ 2,558,060 1,322,080 838,570 6,663,450 150,000 11,532,160 (127,390) 6,005,030 4,844,790 Actual Amounts Final $ 6,005,030 4,847,020 6,006,202 145,679 4,580 6,156,461 Variance with Final Budget $ 2,311,252 1,104,030 777,383 650,001 29,711 4,872,377 246,808 218,050 61,187 6,013,449 120,289 6,659,783 1,284,084 1,409,244 9,153 (2,231) 6,922 10,153 9 10,162 1,291,006 1,419,406 2,035 (1,031,645) (732,965) (2,035) 261,396 $ (130,798) (104,321) (5,015,420) (5,250,539) 6,005,030 6,266,426 1,419,406 $ 1,419,406 To Table of Contents City of Casa Grande, Arizona Golf Course Enterprise Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget Basis For the Year Ended June 30, 2013 Budgeted Amounts Original OPERATING REVENUES: Rental Green fees Miscellaneous Total operating revenues $ OPERATING EXPENSES: Personal services Contractual Materials and supplies Capital outlay Depreciation Total operating expenses $ 507,790 213,050 521,100 219,400 1,461,340 Operating Income NONOPERATING REVENUE (EXPENSE): Interest income Interest expense City sales tax Total nonoperating revenue Income (loss) before transfers Transfers in Transfers out Net change in Fund Balance Fund Balance - beginning of year Fund Balance - end of year 157,804 1,147,526 3,000 1,308,330 $ Actual Amounts Final 157,804 1,147,526 3,000 1,308,330 $ 507,790 207,990 526,160 219,400 1,461,340 133,957 860,577 2,729 997,263 Variance with Final Budget $ 474,738 157,752 460,363 55,102 1,147,955 (23,847) (286,949) (271) (311,067) 33,052 50,238 65,797 164,298 313,385 (153,010) (153,010) (150,692) (54,000) (19,000) (73,000) (19,000) (122,760) 173 (29,857) 25,737 (3,947) 173 (29,857) 44,737 118,813 (226,010) (275,770) (154,639) 121,131 223,760 (114,520) 223,760 (114,520) 223,760 (114,520) (116,770) (166,530) (45,399) 1,203,737 1,086,967 96 $ 1,203,737 1,037,207 $ 1,203,737 1,158,338 2,318 121,131 $ 121,131 To Table of Contents City of Casa Grande, Arizona Capital Assets Used in the Operation of Governmental Funds Schedule By Source June 30, 2013 Governmental funds capital assets: Land and construction in progress Buildings Improvements other than buildings Machinery and equipment Total governmental funds capital assets Investments in governmental funds capital assets by source: General obligation bonds Grants General Fund revenues Special Revenue Fund revenues Capital Project Funds Gifts and donations Total investments in governmental funds capital assets $ 23,118,540 66,862,322 220,222,240 22,990,511 $ 333,193,613 $ 5,311,672 4,500,214 12,132,639 118,012,947 84,955,506 108,280,635 $ 333,193,613 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. 97 To Table of Contents City of Casa Grande, Arizona Capital Assets Used in the Operation of Governmental Funds Schedule of Changes By Function and Activity For the Year Ended June 30, 2013 Function and Activity General government General Capital Assets June 30, 2012 $ Public safety 17,164,243 Additions $ General Capital Assets June 30, 2013 Adjustments/ Disposals 88,133 $ (54,800) $ 17,197,576 41,970,395 2,631,401 194,870,850 11,971,485 - 206,842,335 4,383,774 2,715,501 - 7,099,275 Culture and recreation 41,552,329 316,464 Economic development 18,408,691 - Streets/Transportation Public works Total $ 318,350,282 $ 17,722,984 (986,554) 43,615,242 (1,838,299) 40,030,494 $ (2,879,653) 18,408,691 $ 333,193,613 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. 98 To Table of Contents To Table of Contents STATISTICAL SECTION To Table of Contents To Table of Contents Statistical Section This part of the City of Casa Grande'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 City's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 100 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its sales and property taxes. 110 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 113 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. 122 Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 125 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. 99 To Table of Contents Schedule 1 City of Casa Grande Net Position by Component Last Nine Fiscal Years (accrual basis of accounting) 2005 2006 June 30 2007 2008 2009 Governmental activities Net investment in Capital Assets Restricted Unrestricted Total governmental activities net assets $ 28,136,615 25,705,254 10,880,929 $ 64,722,798 $ 74,265,031 39,505,454 17,574,060 $ 131,344,545 $ 121,397,151 61,600,770 24,880,238 $ 207,878,159 $ 144,539,605 77,352,432 29,930,330 $ 251,822,367 $ 166,666,266 63,759,736 29,204,011 $ 259,630,013 Business-type activities Net investment in Capital Assets Restricted Unrestricted Total business-type activities net assets $ 19,179,454 7,202,857 4,985,723 $ 31,368,034 $ $ 29,545,366 15,292,233 9,374,364 54,211,963 $ 33,189,049 19,276,562 7,191,725 $ 59,657,336 $ Primary government Net investment in Capital Assets Restricted Unrestricted Total primary government net assets $ 47,316,069 32,908,111 15,866,652 $ 96,090,832 $ 101,993,495 51,046,988 26,066,096 $ 179,106,579 $ 150,942,517 76,893,003 34,254,602 $ 262,090,122 $ 177,728,654 96,628,994 37,122,055 $ 311,479,703 $ 209,485,871 80,573,759 30,392,233 $ 320,451,863 $ 100 27,728,464 11,541,534 8,492,036 47,762,034 $ $ 42,819,605 16,814,023 1,188,222 60,821,850 To Table of Contents 2010 2011 2012 2013 $ 169,037,582 66,259,746 24,786,399 $ 260,083,727 $ 163,072,110 68,817,721 20,795,291 $ 252,685,122 $ 161,430,232 37,158,304 48,679,263 $ 247,267,799 $ 157,440,959 40,395,789 46,777,093 $ 244,613,841 $ 46,698,154 11,962,381 5,103,985 $ 63,764,520 $ $ $ $ $ 215,735,736 78,222,127 29,890,384 $ 323,848,247 $ 210,847,017 78,350,244 28,244,981 $ 317,442,242 47,003,748 10,324,306 7,429,067 64,757,120 $ 49,361,435 11,742,168 3,708,031 64,811,634 $ 210,791,667 48,900,472 52,387,294 $ 312,079,433 $ 47,631,810 9,245,649 5,504,681 62,382,140 $ 205,072,769 49,641,438 52,281,774 $ 306,995,981 101 To Table of Contents Schedule 2 City of Casa Grande Changes in Net Position Last Nine Fiscal Years (accrual basis of accounting) 2005 Governmental Activities: Expenses General government Public safety Streets/Transportation Public works Culture and recreation Economic development Interest on long-term debt Total expenses $ Program Revenues Charges for services: General government Public safety Streets/Transportation Public works Culture and recreation Development fees Building permits Development and engineering Other economic development Operating grants and contributions Capital grants and contributions Total program revenues Total Governmental Activities Net Program Expense 109,340 904,202 505,948 2,273,085 285,592 4,667,542 2,017,707 1,876,291 795,721 5,834,031 6,372,598 25,642,057 $ General Revenues and Other Changes in Net Position Property taxes Sales taxes Franchise taxes Shared revenues: State sales taxes Urban revenue sharing Auto-in-lieu Investment earnings Gain on sales of assets Miscellaneous Transfers Total general revenues and other changes in net position Total Governmental Activities Change in Net Position 4,100,221 11,789,718 3,437,830 778,974 4,147,490 2,716,784 477,956 27,448,973 $ (1,806,916) June 30 2007 2006 $ 4,463,957 13,504,033 5,486,251 1,868,890 4,978,247 4,468,076 500,879 35,270,333 $ 119,514 984,555 832,940 84,424 340,272 11,353,338 3,468,682 3,357,825 1,282,294 7,866,501 43,675,183 73,365,528 $ 38,095,195 5,196,569 14,765,435 9,650,354 2,144,675 5,247,404 5,564,781 610,630 43,179,848 133,192 1,091,960 996,571 33,994 328,163 13,115,223 2,580,633 2,456,074 863,185 9,066,924 14,852,514 45,518,433 $ 2,338,585 2008 $ 6,958,153 17,799,896 10,614,899 1,652,940 5,853,610 5,932,564 641,914 49,453,976 2009 $ 144,550 1,214,170 1,345,035 100,784 378,268 8,272,278 1,692,576 694,885 627,986 9,303,041 22,402,954 46,176,527 $ (3,277,449) 7,824,380 20,384,692 12,198,334 2,336,854 7,696,876 4,367,403 972,791 55,781,330 131,394 1,410,573 1,297,796 23,399 378,961 1,332,296 635,045 96,008 379,636 8,859,174 7,360,861 21,905,143 $ (33,876,187) 2,333,638 12,094,301 954,853 2,401,386 14,973,622 1,236,366 2,475,296 22,708,648 1,511,751 3,105,864 28,082,890 1,687,014 6,264,879 23,313,628 1,910,594 2,336,759 2,345,507 1,221,188 466,925 414,900 145,585 99,000 22,412,656 2,721,554 2,728,207 1,585,116 1,508,717 660,798 361,586 349,200 28,526,552 3,086,185 3,760,034 2,032,801 3,222,176 1,846,201 274,310 449,800 41,367,202 2,984,122 4,592,697 2,199,266 3,202,760 452,693 388,409 525,942 47,221,657 2,583,416 4,793,336 2,126,092 815,213 20,605,740 $ 66,621,747 $ 43,705,787 $ 43,944,208 102 440,101 (563,426) 41,683,833 $ 7,807,646 To Table of Contents 2010 $ 2011 6,961,775 20,366,672 12,007,921 2,335,926 6,828,387 4,700,480 2,145,146 55,346,307 $ 153,150 1,135,284 1,144,798 9,736 469,536 1,414,107 494,055 55,896 842,301 7,469,173 4,841,012 18,029,048 $ (37,317,259) 6,875,962 20,265,216 12,554,956 2,067,097 7,103,723 3,731,265 2,436,221 55,034,440 $ 215,969 1,028,639 1,213,808 12,018 771,516 1,023,436 342,553 65,715 376,785 6,266,856 315,613 11,632,908 $ (43,401,532) 2013 6,943,378 22,629,105 13,442,435 2,542,009 7,247,394 3,186,873 2,670,881 58,662,075 $ 173,396 1,370,883 1,369,817 26,595 601,627 161,576 290,999 40,880 429,012 7,420,053 3,507,353 15,392,191 $ (43,269,884) 6,766,944 24,280,544 12,494,463 3,205,901 7,273,320 3,117,655 2,367,185 59,506,012 342,086 1,182,158 1,112,963 60,757 443,652 2,198,089 988,908 74,375 416,676 6,823,705 10,177,899 23,821,268 $ (35,684,744) 7,422,710 19,776,002 1,947,031 6,570,203 18,973,408 2,196,398 6,439,021 18,901,163 2,201,312 6,877,452 19,242,309 2,248,227 2,382,825 4,106,244 2,034,181 107,521 2,590,692 2,897,028 1,992,071 108,552 3,795,352 4,099,428 2,137,645 67,705 3,975,626 4,961,423 2,129,894 3,586 - - 625,779 (631,320) 37,770,973 $ 2012 453,714 - 81,130 593,445 36,002,927 $ (7,398,605) - 121,530 94,464 37,857,620 $ (5,412,264) 49,172 1,337,500 40,825,189 $ 103 5,140,445 To Table of Contents Schedule 3 City of Casa Grande Changes in Net Position Last Nine Fiscal Years (accrual basis of accounting) 2005 Business-type Activities: Expenses Water Golf course Wastewater Sanitation Total expenses Revenues Charges for services: Water Golf course Wastewater Sanitation Sales taxes Investment earnings Miscellaneous Capital grants and contributions Total revenues $ June 30 2007 2006 158,397 844,434 2,487,685 3,148,693 6,639,209 $ 98,048 928,321 3,138,128 3,538,650 7,703,147 $ 115,599 1,107,942 5,413,331 3,902,782 10,539,654 2008 $ 117,638 967,750 4,522,025 4,041,517 9,648,930 2009 $ 153,147 1,266,986 4,610,789 5,465,908 11,496,830 186,225 584,429 7,618,055 3,804,163 2,150,452 183,584 47,086 1,561,589 16,135,583 197,834 781,464 7,533,801 4,571,127 2,676,631 635,533 58,502 7,991,457 24,446,349 193,909 784,983 6,001,607 4,963,964 2,124,036 1,167,957 73,411 2,129,515 17,439,382 190,125 797,501 5,972,329 4,990,169 14,203 919,273 155,834 2,580,813 15,620,247 $ 9,496,374 $ 16,743,202 $ 6,899,728 $ 5,971,317 (99,000) (349,200) (449,800) (525,942) 563,426 Total Business-type Activities Change in Net Position $ 9,397,374 $ 16,394,002 $ 6,449,928 $ 5,445,375 $ 1,164,520 Total Primary Government Change in Net Position $ 30,003,114 $ 83,015,749 $ 50,155,715 $ 49,389,583 $ 8,972,166 Total Business-type Activities Net Program Expense Other Changes in Net Position Transfers 104 196,410 962,206 5,119,786 4,555,927 20,612 202,016 323,560 717,407 12,097,924 $ 601,094 To Table of Contents 2010 $ 159,718 1,243,440 5,528,871 4,653,383 11,585,412 2011 $ 162,094 1,066,642 6,049,625 5,151,563 26,657 8,383 10,473 895,826 13,371,263 $ 1,785,851 2012 150,493 1,203,084 5,561,882 5,028,014 11,943,473 $ 167,772 1,119,396 6,304,052 5,858,238 28,802 45,969 5,289 - 631,320 1,586,045 $ (593,445) $ 2,417,171 $ $ 2,870,885 $ 992,600 (6,406,005) $ 185,176 1,066,136 6,871,045 6,264,192 29,539 15,397 21,139 2,337,217 16,789,841 13,529,518 $ 190,786 1,303,013 9,786,826 5,060,239 16,340,864 2013 448,977 173,935 994,534 6,541,782 6,151,881 25,737 40,519 60,209 13,988,597 $ (94,464) $ 354,513 $ (5,057,751) 226,382 1,299,400 9,188,433 4,953,994 15,668,209 (1,679,612) (1,337,500) $ (3,017,112) $ 2,123,333 105 To Table of Contents Schedule 4 City of Casa Grande Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2004 General Fund Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned Total general fund All Other Governmental Funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds $ 2005 801,965 6,343,317 $ 2006 1,115,310 11,150,642 - $ - 2007 1,476,273 17,796,454 $ - 1,959,234 25,521,015 - $ 7,145,282 $ 12,265,952 $ 19,272,727 $ 27,480,249 $ 2,368,606 $ $ $ 9,013,364 1,066,167 6,252,078 15,594,386 2,479,265 $ 12,448,137 $ 24,325,729 *FY2011: Implementation of GASB-54 Fund Balance Classification 106 4,250,108 28,612,756 5,365,147 $ 38,228,011 4,413,184 43,633,806 10,701,962 $ 58,748,952 To Table of Contents Fiscal Year 2008 $ 2009 2,548,121 30,572,472 - $ 2010 3,153,554 30,402,947 - $ 2011* 3,815,142 25,262,863 - $ 2012 - $ - - $ 33,556,501 $ 29,078,005 1,247,242 $ 24,630,744 $ 32,896,933 $ 25,327,803 $ 39,966,314 $ $ 49,835,900 77,406 39,794,807 8,084 40,446,857 151,896 $ 82,810,239 $ 65,130,694 $ 80,565,067 57,949 13,250,249 1,083,515 50,374,649 (378,345) $ 64,388,017 107 6,264 4,701,221 - $ 33,120,593 - 60,783 33,542,117 15,628,386 13,156,163 (385,290) $ 62,002,159 - - 6,023 4,202,039 19,251,625 502,264 $ 23,961,951 - $ - 7,411 33,225 23,342,866 - 2013 14,550,404 5,281,667 $ 24,539,556 $ - 66,983 35,694,573 2,523,457 27,643,540 (576,410) $ 65,352,143 To Table of Contents Schedule 5 City of Casa Grande Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines Special assessments Investment earnings Rental and sale of city property Other revenues Total revenues 2004 2005 2006 2007 2008 $ 13,294,993 1,385,080 10,902,234 3,221,772 677,048 137,644 124,545 738,198 473,864 30,955,378 $ 15,388,557 2,156,170 11,911,931 9,853,065 739,283 217,895 466,925 701,633 720,093 42,155,552 $ 18,585,602 3,632,214 15,208,404 16,390,930 734,495 354,840 1,508,717 1,071,511 1,198,605 58,685,318 $ 26,706,698 2,756,899 18,007,273 16,678,803 826,533 28,907 3,222,176 1,459,760 720,635 70,407,684 $ 32,840,670 1,881,951 20,798,409 10,171,890 815,081 29,691 3,202,760 1,546,935 608,700 71,896,087 4,451,216 10,309,036 1,672,165 730,486 3,450,403 1,952,308 1,939,318 4,300,175 11,344,629 1,908,050 734,391 3,654,964 2,242,438 4,526,914 5,230,006 12,957,767 2,168,597 1,650,860 4,446,967 3,914,867 6,149,634 5,921,449 14,155,865 2,846,301 2,063,253 4,828,294 4,821,056 8,251,421 8,076,361 16,983,507 2,323,097 1,684,699 5,463,871 4,965,772 11,030,175 960,801 471,539 25,937,272 799,546 477,428 29,988,535 1,206,388 484,775 38,209,861 882,247 707,501 44,477,387 1,226,548 607,351 52,361,381 2,919,819 (1,578,736) 1,056,839 2,686,632 (2,530,831) 3,500,000 1,335,000 (159,557) 5,808,434 (5,374,834) 6,844,898 (6,311,098) 8,101,980 (7,483,839) Expenditures General government Public safety Streets/Transportation Public works Culture and recreation Planning and economic development Capital outlay Debt service Principal Interest Total expenditures Other Financing Sources (Uses) Transfers in Transfers out Capital leases Bond issuance Bond issuance costs Sale of land Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures - $ - - 455,000 - 9,000,000 (30,201) 578,989 10,166,929 2,397,922 4,831,244 433,600 1,809,371 2,798,171 7,416,028 $ 16,998,260 $ 20,909,057 $ 28,728,468 $ 29,701,636 5.97% 5.02% 5.27% 4.39% 4.44% 108 To Table of Contents Fiscal Year 2011 2012 2013 $ 29,088,943 656,902 16,769,422 2,058,720 978,765 8,883 107,521 2,106,527 514,473 52,290,156 $ 27,556,571 546,628 14,151,581 1,661,339 807,884 $ 27,524,503 494,921 17,627,429 2,856,201 756,454 $ 28,352,139 1,263,721 20,814,430 4,024,127 735,217 108,549 1,489,826 349,597 46,671,975 67,707 502,054 1,599,077 51,428,346 3,586 537,055 477,857 56,208,132 8,996,033 18,594,022 2,991,139 1,716,458 5,222,719 3,425,837 27,511,902 8,055,272 18,957,126 2,521,337 2,192,317 5,792,331 3,550,938 31,846,819 8,026,262 19,691,260 2,770,032 1,959,265 5,847,772 2,652,964 24,677,470 7,932,235 20,516,232 3,287,682 1,913,991 5,939,441 2,467,005 8,999,838 7,473,914 22,089,961 2,717,802 2,040,691 6,041,037 2,424,452 10,215,671 5,313,821 955,207 74,727,138 2,484,637 2,125,295 77,526,072 1,899,760 2,594,138 70,118,923 3,669,732 2,733,203 57,459,359 1,718,222 2,343,898 57,065,648 5,630,797 (5,922,924) 12,829,121 (13,965,253) 11,790,392 (11,101,760) 17,492,942 (17,303,578) 7,243,155 (5,786,655) 3,328,600 2009 2010 $ 31,334,264 808,414 17,188,146 2,188,466 1,092,331 21,092 815,213 1,645,235 536,204 55,629,365 - - 750,000 (103,736) 1,500,000 1,854,137 36,191,801 $ (17,243,635) $ 10,955,886 13.28% 37,800,000 (472,067) - 10.09% - - - - 2,200,000 (66,000) - 2,787,000 - 2,822,632 $ (20,624,316) - 2,976,364 $ 9.89% (3,054,649) 13.21% 109 4,785,100 $ 3,927,584 8.67% To Table of Contents Schedule 6 City of Casa Grande Sales Tax Revenue by Industry Fiscal Years 2008 - 2013 Fiscal Year 2008 Percentage Tax Paid of Total Construction Manufacture Transportation/Communication/ Utilities Wholesale Trade Retail Trade Restaurants/Bars Insurance/Real Estate Hotels/Lodging Services All Other $ 11,087,874 750,711 39.17% 2.65% 1,987,604 233,859 9,562,653 1,118,248 2,052,131 316,241 546,058 652,605 Total $ 28,307,984 Fiscal Year 2009 Percentage Tax Paid of Total $ 6,722,392 597,311 28.81% 2.56% 7.02% 0.83% 33.78% 3.95% 7.25% 1.12% 1.93% 2.31% 1,761,603 277,315 9,585,867 1,221,532 1,869,128 462,489 560,571 276,032 100.00% $ 23,334,240 Fiscal Year 2010 Percentage Tax Paid of Total $ 3,558,323 594,982 17.82% 2.98% 7.55% 1.19% 41.08% 5.23% 8.01% 1.98% 2.40% 1.18% 2,053,502 238,731 9,361,417 1,228,270 1,751,628 390,430 433,326 355,036 10.29% 1.20% 46.89% 6.15% 8.77% 1.96% 2.17% 1.78% 100.00% $ 19,965,645 100.00% Source: Arizona State Department of Revenue Note: The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 110 To Table of Contents Fiscal Year 2011 Percentage Tax Paid of Total $ 2,545,580 575,026 13.36% 3.02% 2,009,759 246,612 9,430,292 1,227,699 1,793,481 449,581 432,552 336,162 $ 19,046,744 Fiscal Year 2012 Percentage Tax Paid of Total $ 1,802,508 461,262 9.41% 2.41% 10.55% 1.29% 49.51% 6.45% 9.42% 2.36% 2.27% 1.76% 2,217,902 287,453 9,836,562 1,285,661 1,897,474 483,410 500,029 391,070 100.00% $ 19,163,329 Fiscal Year 2013 Percentage Tax Paid of Total 2,151,068 427,104 11.04% 2.19% 11.57% 1.50% 51.33% 6.71% 9.90% 2.52% 2.61% 2.04% 2,220,570 276,385 9,549,885 1,348,805 1,941,221 564,426 603,372 405,733 11.39% 1.42% 49.00% 6.92% 9.96% 2.90% 3.10% 2.08% 100.00% $ 19,488,568 100.00% 111 $ To Table of Contents Schedule 7 City of Casa Grande Direct and Overlapping Sales Tax Rates As of June 30, 2013 City Rates State and Pinal County Combined Privilege tax, except retail, utilities and telecommunication 1.8% 6.7% 8.5% Retail (excluding food sales) 2.0% 6.7% 8.7% Retail - privilege tax for single item over $5000 1.5% 6.7% 8.2% Hotel/Motel 3.8% 6.7% 10.5% Restaurant/Bar 1.8% 6.7% 8.5% Utilities/Telecommunications 2.0% 6.7% 8.7% Construction 4.0% 6.7% 10.7% Jet Fuel 1.8% 6.7% 8.5% Real Property Rental 1.8% 6.7% 8.5% All Other Services Not Specified 1.8% 6.7% 8.5% Type of Tax (b) (a) (a) Includes a 2.2% tax on construction contracting activities the use of which is restricted to paying costs related to acquisition of capital assets and improvements included in the City's Capital Improvement Plan. (b) Includes the two-tenths (0.2) of one percent (1%) Economic Development and Recreation Excise Tax. The sale of a single item over $5,000 is taxed at 2.0% for the first $5,000, then the rate drops to 1.5% for the taxable amount exceeding $5,000. Sources: City of Casa Grande Finance Department and Arizona Department of Revenue 112 To Table of Contents To Table of Contents Schedule 8 City of Casa Grande Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Obligation Bonds 1,335,000 1,335,000 1,790,000 10,775,000 9,739,549 27,282,278 28,395,915 27,575,463 27,370,000 Governmental Activities Excise Tax Special Revenue Assessment Obligations Bonds 8,138,000 7,688,583 7,217,943 6,721,488 6,199,218 3,130,318 21,249,788 20,603,035 18,358,670 17,653,768 685,000 585,000 480,000 370,000 255,000 130,000 - Capital Leases 1,236,062 4,485,933 4,029,980 3,754,188 3,180,356 2,909,161 2,598,870 2,331,681 4,846,117 7,831,620 Business-type Activities Excise Tax/ General GO Bond Obligation Revenue Bonds Obligations 2,000,000 1,605,451 1,382,721 1,269,083 1,224,537 1,169,991 Notes: Details regarding the City's outstanding debt can be found in the financial statements. (a) See Schedule 13 for personal income and population data. Personal income is based on Pinal County information. 113 15,926,820 15,426,237 14,911,877 14,388,332 13,855,602 13,304,502 12,735,032 12,125,001 11,266,335 10,636,233 To Table of Contents Business-type Activities Capital Leases 404,534 593,795 408,291 295,899 179,122 57,790 6,793 - Notes Payable 178,170 177,300 168,069 158,520 148,643 4,352,312 38,501,765 51,738,811 56,896,857 50,024,722 Total Primary Government 26,568,586 30,291,848 28,551,160 27,478,427 36,592,941 35,229,083 103,757,247 116,463,526 120,167,979 114,686,334 114 Percentage of Personal Income (a) 4.32% 4.22% 3.59% 3.12% 3.61% 3.16% 8.55% 8.66% 8.93% 8.53% Per Capita (a) 848.43 884.18 783.30 708.48 886.78 780.86 2,255.94 2,397.80 2,474.07 2,361.21 To Table of Contents Schedule 9 City of Casa Grande Ratio of General Bonded Debt Outstanding Last Eight Fiscal Years Fiscal Year General Obligation Bonds 2007 1,790,000 2008 2008 1,775,000 11,000,000 2009 2009 Percentage of Estimated Actual Value of Property Estimated Actual Value of Property (a) General Bonded Debt Per Capita (b) Restricted for Principal Payment 39,939,824 4.48% 1,584 (1) (2) 93,675,428 2,295,221,460 1.89% 0.48% 664 267 2,515,000 8,830,000 (1) (2) 167,571,141 2,928,179,559 1.50% 0.30% 836 176 2010 2010 2,430,000 26,234,999 (1) (2) 249,681,000 3,680,064,800 0.97% 0.71% 807 522 2011 2011 4,555,000 25,109,998 (1) (2) 235,284,000 3,209,485,830 1.94% 0.78% 1,469 499 320,000 545,000 2012 2012 4,235,000 23,340,463 (1) (2) 313,880,004 3,145,296,113 1.35% 0.74% 1,366 464 100,000 625,000 2013 2013 4,030,000 23,340,000 (1) (2) 269,324,094 2,788,057,728 1.50% 0.84% 883 464 105,000 600,000 (a) Source: Pinal County Assessor's records (b) Estimated population of Mission Royale CFD 6/30/13 Estimated population of Villago CFD 6/30/13 Source: City of Casa Grande Development Center (c) Includes all City Bonded debt, net of assets restricted for payment of principal, Population of Casa Grande 2,888 1,674 50,296 (1) General obligation bonds were issued by the Mission Royale Community Facilities District in 2005 and the Villago Community Facilities District in 2006, 2008 and 2010. These bonds will be repaid by the property owners within the CFDs and are obligations of the districts only. (2) General obligation bonds were issued by the City of Casa Grande in June, 2008 and July, 2009. 115 To Table of Contents Schedule 10 City of Casa Grande Direct and Overlapping Governmental Activities Debt As of June 30, 2013 Bonded Debt Outstanding Governmental Unit Elementary School District #4 $ Estimated Share of Overlapping Debt Estimated Percentage Applicable 10,965,000 80.26% Union High School District #82 28,720,000 62.48% 17,945,491 Central Arizona Community College 91,340,000 16.68% 15,239,026 Mission Royale CFD 1,180,000 100.00% 1,180,000 Villago CFD 2,955,000 100.00% 2,955,000 Subtotal, overlapping debt City direct debt $ $ 30,601,629 Total direct and overlapping debt 100.00% 8,801,349 46,120,866 30,601,629 $ 76,722,495 Sources: Assessed value data used to estimate applicable percentages provided by Pinal County Assessor's Office. Debt outstanding data provided by Pinal County Finance. Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Casa Grande. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of Pinal County's taxable assessed value that is within the government's boundaries and dividing it by the County's total taxable assessed value. 116 To Table of Contents Schedule 11 City of Casa Grande Legal Debt Margin Information June 30, 2013 Net Secondary Assessed Valuation as of June 30, 2013 (a) $ Debt limit (6% of assessed value) Debt applicable to limit: General obligation bonds 326,689,159 19,601,350 0 Legal 6% debt margin $ Debt limit (20% of assessed value) Debt applicable to limit: General obligation bonds 19,601,350 65,337,832 28,075,000 Legal 20% debt margin $ 37,262,832 Arizona's Constitution states that a municipality cannot issue general obligation bonds in excess of 6% of the assessed valuation for general municipal purposes. Additional general obligation bonds for up to 20% of assessed valuation can be issued for specific purposes suchas supplying water and sewer services and recreational and playground facilities. (a) Source: Pinal County Assessor's records Note: The City issued General Obligation bonds for $11,000,000 in June, 2008 and $19,000,000 in August 2009. 117 To Table of Contents Schedule 12 City of Casa Grande Pledged-Revenue Coverage Last Ten Fiscal Years Fiscal Year Transaction Privilege (Sales) Tax (a)(b) 2007 2008 2009 2010 2011 2012 2013 $23,954,813 27,140,828 22,375,653 18,566,490 17,599,226 18,179,713 18,533,580 Special Assessment Bonds State State Shared Shared Franchise Sales Tax Income Tax Tax $3,086,185 2,984,122 2,583,416 2,382,825 2,590,692 3,795,352 3,975,626 $3,760,034 4,592,697 4,793,336 4,106,244 2,897,028 4,099,428 4,961,423 $1,511,751 1,687,014 1,910,594 1,947,031 2,034,471 2,330,056 2,405,674 Excise Tax Revenue Obligations Licenses & Permits/Fines & Forfeitures $3,583,432 2,697,032 1,900,745 1,635,667 1,354,512 1,109,259 1,951,976 Debt Service Principal Interest $1,050,000 1,105,000 1,165,000 950,001 985,000 1,515,000 1,570,000 $957,807 901,980 594,321 1,054,202 1,022,252 1,644,925 1,457,260 (a) The sale of a single item over $5,000 is taxed at 2.0% for the first $5,000, then the rate drops to 1.5% for the taxable amount exceeding $5,000. (b) Does not include the two-tenths of one percent (0.2%) Economic Development and Recreation Excise Tax which is pledged to the repayment of the 2009 Obligations and obligations issued on a parity therewith only (the "2009 Parity Obligations"). In connection with allocating the Excise Taxes among payments due with respect to the 2009 Parity Obligations and all Parity Obligations, the Economic Development and Recreation Excise Taxes will be applied first to the payments due with respect to the 2009 Parity Obligations and the Excise Taxes will then be allocated proportionately to the remaining payments due with respect to all Parity Obligations. The revenues from the Economic Development and Recreation Excise Tax for the last six fiscal years have been: Fiscal Year 2007 2008 2009 2010 2011 2012 2013 Amount $877,870 956,265 958,587 936,142 946,029 983,656 954,988 118 Coverage 17.88 19.48 19.08 14.29 13.19 9.34 10.51 To Table of Contents Schedule 13 City of Casa Grande Real & Personal Property Tax Levies and Collections Collected to June 30 End of Tax Fiscal Year (a) Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 Tax Levy $1,943,077 2,324,353 5,293,122 5,969,317 5,774,873 5,467,279 5,604,882 5,617,000 Taxes Receivable Collections $1,941,725 2,321,741 5,286,603 5,938,525 5,755,354 5,438,096 5,414,500 5,546,710 $1,351 2,612 6,519 30,793 19,519 29,183 190,381 70,290 Percent of Tax Levy 99.9% 99.9% 99.9% 99.5% 99.7% 99.5% 96.6% 98.7% Adjustments ($1,806) (38,308) (109,541) (19,840) (6,226) (12,865) (33,762) - (a) Reflects collections made through June 30, the end of the fiscal year, on such year's levy. Property taxes are payable in two installments. The first installment is due the first day of October and becomes delinquent on November 1. The second installment becomes due the first day of March and is delinquent on May 1. Interest at the rate of 16% per annum attaches on first and second installments following their delinquent dates unless the full year tax is paid by December 31. Penalties for delinquent payments are not included in the above collections figures. Source: Pinal County Treasuer's Office 119 To Table of Contents Schedule 14 City of Casa Grande Tax Rate Data Fiscal Year City's Primary Tax Rate Per $100 Assessed City's Secondary Tax Rate Per $100 Assessed City's Total Tax Rate Per $100 Assessed 2005 2006 2007 2008 2009 2010 2011 2012 2013 $0.9999 0.9999 0.9102 0.8774 0.7468 0.7135 0.8110 0.8988 $0.9489 $0.0000 0.0000 0.0000 0.0000 0.6308 0.6308 0.6308 0.6308 $0.6308 $0.9999 0.9999 0.9102 0.8774 1.3776 1.3443 1.4418 1.5296 1.5797 Source: Property Tax Rates and Assessed Values, Arizona Tax Research Foundation 120 To Table of Contents Schedule 15 City of Casa Grande Estimated Net Secondary Assessed Valuation of Major Taxpayers Type of Business/Property Taxpayers (a)(b) Arizona Public Service Co. Wp Casa Grande Retail LLC Wal-Mart Stores East LP Daisy Brand LLC Abbott Manufacturing Inc. Southwest Gas Corp. CG Hanna LLC Hexel Corp. Arizona Water Co. Courtney Mann LLC Daisy Brand LP Wal-Mart Stores Inc. Lowes HIW Inc. HSL Desert Sands Properties LLC Target Corporation Property Dev. Electric Utility Retailer Retailer Dairy Product Manufacturing Gas Utility Pharmaceutical Manufacturing Real Estate Management Manufacturing Water Utility Vitamin Distributor Dairy Product Manufacturing Retailer Home Improvement & Construction Real Estate Management Retailer TOTAL Estimated 2012-13 Net Secondary Assessed Valuation As Percent of City's 2012-13 Net Secondary Assessed Valuation $11,944,055 10,708,206 6,986,689 4,832,319 4,023,899 3,506,031 2,942,354 2,809,400 2,739,645 2,531,351 2,527,381 2,470,353 2,151,404 2,129,927 2,024,773 $64,327,787 (a) Some of such taxpayers or their parent companies are subject to the informational requirements of the Exchange Act, and in accordance therewith file reports, proxy statements and other information with Commission. The Filings may be inspected and copied at the public reference facilities maintained by the Commission at 450 Fifth St. N.W., Washington, D.C. 20549 and at the Commission's regional offices at Northwestern Atrium Center, 500 W. West Madison St., Suite 1400, Chicago, Illinois 60661. Copies of the Filings can be obtained from the public reference section of the Commission at 450 Fifth St., N.W., Washington, D.C. 20549 at prescribed rates. In addition, the Filings may also be inspected at the offices of the New York Stock Exchange at 20 Broad Street, New York, New York 10005. The Filings may also be obtained through the Internet on the Commission's EDGAR database at http://www.sec.gov. (b) The assessed valuation of property owned by the Salt River Project Agricultural Improvement and Power District ("SRP") is not included in the assessed valuation of the City in the table. Because of SRP's quasi-governmental nature, property owned by SRP is exempt from property taxation. However, SRP may elect each year to make voluntary contributions in lieu of property tax with respect to certain of its electrical facilities (the "SRP Electric Plant"). If SRP elects to make the in lieu contribution for the year, the full cash value of the SRP Electric Plant and the in lieu contribution amount is determined in the same manner as the full cash value and property taxes owed is determined for similar nongovernmental public utility property, with certain special deductions. If after electing to make the in lieu contribution, SRP then failed to make the in lieu contribution when due, the Treasurer of the Treasurer of the County and the City have no recourse against the property of SRP and the City. Source: Pinal County Assessor's Office 121 3.66% 3.28% 2.14% 1.48% 1.23% 1.07% 0.90% 0.86% 0.84% 0.77% 0.77% 0.76% 0.66% 0.65% 0.62% 19.69% To Table of Contents Schedule 16 City of Casa Grande Demographic and Economic Statistics, Last Ten Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Population 31,315 34,260 36,450 38,785 42,422 45,116 45,993 48,571 49,804 50,296 County Per Capita Personal Income 19,646 20,959 21,800 22,672 23,905 25,000 26,373 27,690 21,716 21,419 Total Personal Income 615,214,490 718,055,340 794,610,000 879,333,520 1,014,097,910 1,127,900,000 1,212,973,389 1,344,930,990 1,081,543,664 1,077,290,024 School Enrollment Unemployment Rate 8,120 8,930 9,049 10,290 11,066 11,652 10,700 10,700 11,512 10,852 5.00% 5.20% 5.10% 4.30% 6.10% 11.10% 11.50% 11.50% 11.20% 9.10% Sources: Arizona Department of Commerce U.S. Bureau of Labor Statistics Casa Grande Elementary and Casa Grande Union High School Districts. U.S. Census Bureau 122 To Table of Contents Schedule 17 City of Casa Grande Principal Employers, Current Year and Ten Years Ago Employer Casa Grande Elementary School District Casa Grande Regional Medical Center Hexcel Corporation Wal-Mart Distribution Center Wal-Mart Supermarket Frito-Lay Inc. Abbott Laboratories/Ross Products City of Casa Grande National Vitamin Company Franklin Foods All Others 2013 Percentage of Total City Employees Employment 2001 (a) Percentage of Total City Employees Employment 1,030 860 550 500 450 450 435 419 180 175 14,408 5.29% 4.42% 2.83% 2.57% 2.31% 2.31% 2.24% 2.15% 0.93% 0.90% 74.05% 625 788 562 302 397 251 10,891 4.52% 5.70% 4.07% 0.00% 0.00% 2.19% 2.87% 1.82% 0.00% 0.00% 78.83% 19,457 100.00% 13,816 100.00% Sources: City of Casa Grande Central Arizona Regional Economic Development Foundation AZ Department of Commerce (a) Employment data from 2003 is not available - the information presented is from 2001 123 To Table of Contents Schedule 18 City of Casa Grande Authorized City Government Employee Positions by Function/Program Last Ten Fiscal Years Function/Program Fiscal Year General Government Police, City Attorney and Court 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 23.0 24.0 26.0 30.0 39.3 39.5 37.3 37.3 38.8 38.3 97.5 103.5 107.5 123.1 139.0 137.2 128.8 125.8 126.4 135.3 Fire Culture and Recreation Planning and Development Public Works 37.0 38.0 41.0 54.8 60.5 62.1 63.3 62.3 62.3 62.3 44.0 44.0 44.0 48.0 61.3 61.8 68.3 67.3 66.6 51.0 17.0 19.0 22.0 26.5 34.5 34.0 31.0 31.0 24.5 21.5 80.0 79.0 84.3 96.3 104.5 104.5 100.5 97.8 99.4 102.0 Source: City Budget Note: Information is based on authorized positions. 124 Total 298.5 307.5 324.8 378.6 439.0 439.1 429.0 421.3 417.9 410.3 To Table of Contents Schedule 19 City of Casa Grande Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program General government Registered voters Votes cast last primary election Fire Medical support calls Total alarms Inspections/investigations Public education contacts Police Calls for service Officer initiated Patrolled miles Traffic accidents Traffic citations Arrests (adult and juvenile) Culture and recreation - library (a) Items in collections Total circulation transactions Total circulation items Economic development Building permits - commercial Building permits - residential Self-help homes completed Self-help homes started Housing rehabilitations Code enforcement cases Planning cases 2004 2005 2006 2007 2008 2009 2010 2011 2012 13,685 1,242 15,919 1,428 13,239 1,428 13,946 2,364 19,331 2,364 20,805 2,400 20,805 2,400 20,805 4,182 20,805 4,182 20,417 3,886 3,085 4,136 524 7,344 3,427 4,557 487 11,764 3,766 5,137 390 8,884 3,778 5,194 986 10,164 4,286 5,642 1,512 19,801 4,689 5,050 1,505 25,064 4,289 5,703 883 15,812 4,849 6,397 1,051 12,622 4,941 6,515 1,458 18,743 5,155 6,685 910 26,225 37,674 69,588 716,138 928 8,607 4,387 38,869 69,412 702,062 1,046 7,068 4,614 39,365 69,936 706,375 1,213 6,127 4,055 42,412 72,028 802,935 1,121 6,136 3,840 41,126 71,626 864,421 1,104 6,943 4,015 40,893 76,263 939,398 991 7,025 3,981 38,629 72,807 983,100 974 6,107 4,738 38,660 85,032 1,005,416 942 5,171 3,737 34,213 78,125 974,867 938 6,008 4,052 31,308 88,023 991,778 874 7,836 4,098 90,826 52,240 172,391 86,364 51,915 170,875 73,984 49,718 187,063 74,311 73,079 225,043 75,863 75,840 229,446 79,920 78,727 270,473 113,480 98,937 329,790 114,257 70,820 368,693 117,108 69,376 361,334 454,700 n/a 376,405 262 1,983 22 13 12 660 161 273 2,565 6 26 9 1,059 154 339 3,501 20 27 12 1,704 334 143 1,454 25 25 12 984 193 195 777 25 26 12 1,150 85 114 329 25 25 12 1,331 95 90 369 12 12 12 1,317 90 95 291 12 12 12 2,104 121 63 259 11 14 11 1,203 110 94 264 0 0 21 1,206 133 Sources: Various City departments Note: (a) Effective 2007 Library circulation transactions includes information transactions (b) Effective 2013 Library data includes both print and digital media (including digital books available through the Greater Phoenix Digital Library) 125 2013 To Table of Contents Schedule 20 City of Casa Grande Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function/Program Fire stations Parks and recreation Park areas Parkland acreage Community centers Golf courses Playgrounds Other maintenance areas Airport T-hangers T-shades Public works Total number of streetlights** Miles of streets (centerline)** Miles of sewer** Number of lift stations Number of signalized intersections* 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 3 3 3 3 3 3 4 4 4 24 1,790 4 1 22 85 24 1,370 4 1 22 85 24 1,370 4 1 24 87 25 1,371 4 1 24 88 26 1,387 5 1 25 93 26 1,396 5 1 26 93 27 1,566 5 1 26 95 27 1,611 5 1 26 97 27 1,611 5 1 26 97 27 1,611 5 1 26 99 52 18 52 18 52 18 52 18 52 18 52 18 52 18 52 18 52 18 52 18 1,893 321 145 10 27 2,011 354 160 10 27 2,217 375 300 9 31 3,130 375 375 9 31 3,302 389 450 9 35 3,500 410 455 10 38 3,363 410 455 10 39 5,340 410 455 10 41 5,340 414 455 10 41 3,948 409 284 10 41 * Includes ADOT signalized intersections **Enhanced GIS information utilized beginning in FY2013 Sources: Various City departments 126 To Table of Contents To Table of Contents SINGLE AUDIT REPORTS To Table of Contents To Table of Contents 127 To Table of Contents 128 To Table of Contents 129 To Table of Contents 130 To Table of Contents City of Casa Grande, Arizona Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2013 U.S. Department of Agriculture: Self Help Housing Technical Assistance Total Department of Agriculture U.S. Department of Housing and Urban Development: Passed through Arizona Department of Housing: Community Development Block Grant - 2011 Community Development Block Grant - 2012 Community Development Block Grant - 2012 Total Community Development Block Grant Passed through Arizona Department of Housing: HOME - 2010 Total Department of Housing and Urban Development U.S. Department of Interior National Park Service Passed thru State Library Administrative Agencies: Historic Perservation Total Interior National Park Service Grant Number Federal CFDA Number 12 10.420 174,294 174,294 111-11 101-12 132.12 14.228 14.228 14.228 20,949 167,498 51,438 239,885 304-13 14.239 43,716 283,601 AZ-12-011 15.904 900 900 2012-DXBX-0808 2010-DJBS-3344 2010-DJBX-0517 16.738 16.738 16.738 9,895 2,172 18,241 30,308 2006BUBX 2010RKWX003 16.607 16.710 6,795 314,619 351,722 3-04-0007-12-2008 3-04-0007-14-2011 3-04-0007-15-2012 3-04-0007-16-2012 20.106 20.106 20.106 20.106 775 409,015 110,105 1,422,752 1,942,647 2012-AL-005 2012-TR-001 2013-AI-003 2013-AI-004 2013-410-005 2013-OP-015 20.600 20.600 20.600 20.600 20.600 20.600 4,953 99 7,477 1,390 24,912 7,500 46,330 2013-164-016 20.608 2,000 48,330 Expenditures U.S. Department of Justice: JAG Grant JAG Grant JAG Grant Total Justice Assistance Grant Cluster Other U.S. Department of Justice: Bulletproof Vest Grant ARRA- Community Oriented Policing Services (COPS) Total Department of Justice U.S. Department of Transportation: FAA Airport Grant FAA Airport Grant FAA Airport Grant FAA Airport Grant Total Airport Improvement Program Passed thru Governor's Office of Highway Safety DUI Enforcement TraCS Software Crash Investigation Equip Accident Investigation Equip Training DUI Enforcement Buckle UP Campaign DUI OT Total State and Community Highway Safety Total Department of Transportation 1,990,977 (continued) 131 * * * * To Table of Contents City of Casa Grande, Arizona Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2013 Institute of Museum & Library Services Passed thru State Library Administrative Agencies: eReaders Testing Preparation Total Institute of Museum & Library Services U.S. Department of Health & Human Services Passed through Pinal-Gila Council for Senior Citizens: Special Programs for the Aging Special Programs for the Aging Nutritional Services Incentive Program Total Aging Cluster Passed through Pinal-Gila Council for Senior Citizens: Social Services Block Grant Total Department of Health & Human Services Grant Number Federal CFDA Number 212J2168 212J2205 45.310 45.310 1,543 4,976 6,519 5-237 5-237 5-237 93.044 93.045 93.053 15,930 69,823 19,112 104,865 5-237 93.667 10,649 115,514 D08-12-2004 95.001 4,969 Expenditures Executive Office of the President Passed through Tucson Police Department U.S. Marshall's Service U.S. Department of Homeland Security Federal Emergency Management Agency EMW-2010-FH-00356 97.044 99,902 FEMA/AFG Fire Regional Training Program EMW-2011-F0211 97.044 348,575 Total FEMA * * 448,477 Passed through Arizona Department of Homeland Security: Emergency Operation Center 2010-EO-MX-0015 97.052 389,480 999301-01 97.067 41,145 Operation Stonegarden Grant Program 555312-04 97.067 19,947 Operation Stonegarden Grant Program 777315-03 97.067 29,746 Operation Stonegarden Grant Program 888308-01 97.067 38,290 Operation Stonegarden Grant Program 888308-02 97.067 5,000 Operation Stonegarden Grant Program 999316-01 97.067 51,314 Homeland Security Grant Program Passed through Arizona Division of Emergency Management: Arizona Dept of Homeland Security Passed through Arizona Department of Homeland Security: Total Homeland Security Grant Program 185,442 Total Department of Homeland Security 1,023,399 Total Federal Financial Assistance and Expenditures of Federal Awards *Denotes major program See accompanying note 132 $ 3,951,895 * To Table of Contents City of Casa Grande Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Casa Grande and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with requirements of OMB Circular A-133, Audits of States, Local Governments, and NonProfit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. 133 To Table of Contents 134 To Table of Contents 135 To Table of Contents 136