City of Glendale, Arizona
Comprehensive Annual Financial Report

For the Fiscal Year
Ended June 30, 2007

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City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

INTRODUCTORY
SECTION

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

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City of Glendale, Arizona

Comprehensive
Annual Financial Report
For the Fiscal Year Ended June 30, 2007

Mayor
Elaine M. Scruggs
Councilmembers
Manuel D. Martinez
Vice Mayor
Cholla District
Joyce V. Clark - Yucca District
Steven E. Frate - Sahuaro District
David M. Goulet - Ocotillo District
Yvonne Knaack - Barrel District
H. Philip Lieberman - Cactus District

Management Staff
Ed Beasley - City Manager
Pam Kavanaugh - Assistant City Manager
Arthur R. Lynch
Deputy City Manager
Administrative Services
Kenneth A. Reedy
Deputy City Manager - Public Works
Gloria Santiago-Espino
Deputy City Manager
Community Information & Services
Horatio Skeete
Deputy City Manager
Community Development
Prepared by the Finance Department
Raymond H. Shuey
Chief Financial Officer

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City of Glendale, Arizona
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2007
TABLE OF CONTENTS

Page
I.

INTRODUCTORY SECTION
Title Page .........................................................................................................................................i
Table of Contents ...........................................................................................................................iii
Letter of Transmittal .......................................................................................................................1
GFOA Certificate of Achievement..................................................................................................6
Glendale, Arizona and Neighboring Communities .........................................................................7
Glendale City Officials ...................................................................................................................8
Glendale Council District Boundaries.............................................................................................9
Organization Chart ........................................................................................................................10

II. FINANCIAL SECTION
Independent Auditors’ Report ..............................................................................................................11
A. MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A).............................................13
B. BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Assets ................................................................................................................25
Statement of Activities ..................................................................................................................26
Fund Financial Statements:
Balance Sheet – Governmental Funds...........................................................................................28
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Assets..................................................................................................................................29
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds..................................................................................................................30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..............................................31
Statement of Net Assets – Proprietary Funds................................................................................32
Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds...........33
Statement of Cash Flows – Proprietary Funds ..............................................................................34
Notes to the Financial Statements (including an Index of the Notes) ...............................................36
C. REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund ........................................................................75
Budgetary Comparison Schedule – Transportation Fund..............................................................77
Notes to Required Supplementary Information.............................................................................78

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City of Glendale, Arizona
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2007
TABLE OF CONTENTS

Page
D. COMBINING STATEMENTS
Non-Major Governmental Funds
Combining Balance Sheet..........................................................................................................82
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..................84
Budgetary Comparison Schedules
Municipal Property Corporation Construction Fund (a Major Fund) ....................................86
Community Development Block Grants Fund.......................................................................87
Highway Users Gas Tax Fund ...............................................................................................88
Development Impact Fees Fund.............................................................................................89
Other Special Revenue Fund..................................................................................................90
General Obligation Debt Service Fund ..................................................................................91
Highway User Debt Service Fund..........................................................................................92
Municipal Property Corporation Debt Service Fund ............................................................93
Special Assessment Debt Service Fund .................................................................................94
Streets Construction Fund......................................................................................................95
Fire and Police Construction Fund.........................................................................................96
Parks Bond Construction Fund ..............................................................................................97
Other Construction Fund........................................................................................................98
Cemetery Perpetual Care Permanent Fund ............................................................................99
Non-Major Proprietary Funds – Business-type Activities
Combining Statement of Net Assets........................................................................................100
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets...................101
Combining Statement of Cash Flows ......................................................................................102
Budgetary Comparison Schedules
Water and Sewer Fund (a Major Fund)................................................................................104
Landfill Fund (a Major Fund) ..............................................................................................106
Sanitation Fund ....................................................................................................................107
Housing Fund.......................................................................................................................108
Internal Service Funds
Combining Statement of Net Assets........................................................................................109
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets...................110
Combining Statement of Cash Flows ......................................................................................111
Budgetary Comparison Schedules
Risk Management Fund .......................................................................................................112
Workers’ Compensation Fund .............................................................................................113
Employee Benefits Fund......................................................................................................114
E. OTHER SUPPLEMENTARY INFORMATION
Federal Financial Data Schedule..........................................................................................115

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City of Glendale, Arizona
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2007
TABLE OF CONTENTS

III. STATISTICAL SECTION
Schedule

Page

Net Assets by Component .................................................................................................. 1.............120
Changes in Net Assets........................................................................................................ 2.............122
Fund Balances – Governmental Funds............................................................................... 3.............124
Changes in Fund Balances – Governmental Funds ............................................................ 4.............126
Assessed and Estimated Actual Value of Taxable Property............................................... 5.............128
Direct and Overlapping Governments Property Tax Rates ................................................ 6.............129
Principal Property Taxpayers ............................................................................................. 7.............130
Property Tax Levies and Collections ................................................................................. 8.............131
City Transaction Privilege Taxes (Sales Tax) by Category................................................ 9.............132
Ratio of Outstanding Debt by Type.................................................................................. 10.............134
Ratios of Net General Bonded Debt Outstanding............................................................. 11.............136
Net Direct and Overlapping Governmental Activities Debt............................................. 12.............137
Legal Debt Margin Information ....................................................................................... 13.............138
Pledged-Revenue Coverage ............................................................................................. 14.............140
Demographic and Economical Statistics .......................................................................... 15.............142
Principal Employers ......................................................................................................... 16.............143
Full-time Equivalent City Government Employees by Function/Program....................... 17.............144
Operating Indicators by Function/Program ...................................................................... 18.............145
Capital Asset Statistics by Function/Program .................................................................. 19.............146
Miscellaneous Water and Sewer Rate Statistics............................................................... 20.............147
Miscellaneous Water and Sewer Statistics ....................................................................... 21.............148

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November 21, 2007
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Glendale, Arizona:
State law requires that cities annually publish after the close of each fiscal year a complete set of financial
statements presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public
accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of
the City of Glendale, Arizona (the City) for the fiscal year ended June 30, 2007.
This report consists of management’s representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all the information
presented in this report. To provide a reasonable basis for making these representations, management of
the City has established a comprehensive internal control framework that is designed both to protect the
government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial statements will be free
from material misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the City for the fiscal year ended June 30, 2007, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation.
The independent audit of the financial statements of the City was part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City’s separately issued Single Audit
reporting package.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement MD&A and should be read in conjunction with it.

City of Glendale
Municipal Complex • 5850 West Glendale Avenue • Glendale, Arizona 85301-2599 • Phone (623) 930-2000
www.ci.glendale.az.us

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Profile of the government
The City, incorporated in 1910, is located in the northwestern part of metropolitan Phoenix, which is
considered to be one of the top growth areas in the country. The City currently occupies a land area of 57.9
square miles and serves a population of 246,382. The City is empowered to levy a property tax on both
real and personal properties located within its boundaries. It also is empowered by state statute to extend
its corporate limits by annexation, which occurs periodically when deemed appropriate by the city council.
The City has operated under the council-manager form of government since 1910. Policy-making and
legislative authority are vested in a city council consisting of the mayor and six other members. The city
council is responsible, among other things, for passing ordinances, adopting the budget, appointing
committees, and hiring the government’s manager, clerk, attorney and municipal judges. The
government’s manager is responsible for carrying out the policies and ordinances of the city council, for
overseeing the day-to-day operations of the government, and for appointing the heads of the various
departments. The council is elected on a non-partisan basis. Council members serve four-year terms, with
three council members elected every two years. The mayor is elected to serve a four-year term. The
council members are elected by district. The mayor is elected at large.
The City provides a full range of services, including police and fire protection; water and sewer and
sanitation services; the construction and maintenance of highways, streets, public facilities and other
infrastructure; and recreational activities and cultural events. Certain housing services are provided by the
city’s public housing authority, which functions, in essence, as a department of the City and therefore has
been included as an integral part of the City’s financial statements. The City also is financially accountable
for a legally separate municipal property corporation, which is reported separately within the City’s
financial statements.
The annual budget serves as the foundation for the City’s financial planning and control. All agencies of
the City are required to submit requests for appropriation to the government’s manager on or before the last
week in January each year. The government’s manager uses these requests as the starting point for
developing a proposed budget. The government’s manager then presents this proposed budget to the
council for review during the month of April. The council is required to hold public hearings on the
proposed budget and to adopt a final budget by no later than June 30th, the close of the City’s fiscal year.
The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police).
Department heads may make transfers of appropriations within a department. Transfers of appropriations
between funds, however, require the special approval of the governing council. Budget-to-actual
comparisons are provided in this report for each individual fund for which an appropriated annual budget
has been adopted.
Factors affecting financial condition
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which the City operates. All amounts, unless
otherwise indicated, are expressed in thousands of dollars.
Local economy. The City currently enjoys an economic environment that continues to grow and diversify.
Local indicators point to continued stability and strength. The economy of Glendale is based on
manufacturing, defense activities, services, private graduate schools, retail trade, restaurants, sports and
entertainment. The Arizona Department of Economic Security currently lists the average labor force in the
City as 142,942 for the period January through June 2007 and an average employment of 138,533 for the
same period. Average employment for the same period last year was 132,337, demonstrating that the
positive growth in jobs has kept pace with population growth.

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The City receives significant “State Shared Revenues” that are allocated to various funds. As a result of
this year’s mid-decade census and the recalculation of Glendale’s pro rata portion of state shared revenues,
the City anticipates a smaller segment of these revenues in future years. The City has taken this into
account in the budgeting process and does not expect any operating budget reductions.
The City of Glendale has continued to follow its strategy, developed by the Finance Department, to
maintain fund balances.
The growth in the various sectors of the City’s economy is reflective of the positive growth trends of the
Phoenix metropolitan area and of the state of Arizona. The County’s population is approximately 3.9
million. The state’s population reached 6.43 million in 2007, representing a 3.04% increase over the
previous fiscal year.
Long-term financial planning. Glendale’s Sports and Entertainment district has experienced
unprecedented growth in this past year. This growth starts with Westgate City Center. In fall 2006, phase I
was completed and opened more than 615,000 square feet of retail and office space. An additional 1.1
million square feet of residential and hotel space are currently under construction, namely the Marriott
Renaissance Hotel and the Hampton Inn & Suites. These hotels are expected to be open for business for
the 2008 Tostitos Fiesta Bowl and Super Bowl XLII.
Westgate City Center is also the location of Jobing.com Arena, formerly known as Glendale Arena. This
arena continues to be one of the nation’s top sports and concert venues. Jobing.com Arena is the
permanent home of the National Hockey League’s Phoenix Coyotes and National Lacrosse League’s
Western Division champions, Arizona Sting.
In May 2007, Westgate City Center and the City of Glendale became one of only eighteen cities nationwide
to host the AVP Open Pro Beach Volleyball events.
Cabela’s, World’s Foremost Outfitter, opened its doors for business on July 27, 2006. Cabela’s features
160,000 square feet of showroom, 40,000 gallon walk-through aquarium, 8,000 square foot wildlife
museum, restaurant and more. It is estimated that three million people annually will make the trip to
Glendale to visit Cabela’s, generating revenue on the lodging, food, and entertainment.
The crown jewel of Glendale’s Sports and Entertainment District is the University of Phoenix Stadium. In
August 2006, the stadium opened with the new National Football League’s season as the home of the
Arizona Cardinals. The University of Phoenix Stadium was the host of the 2007 Tostitos Fiesta Bowl and
the 2007 BCS National Championship game. The University of Phoenix Stadium will host Super Bowl
XLII and will continue to host the Tostitos Fiesta Bowl. Business Week recognized the stadium as one of
the top ten sporting structures in the world, and it is the only U.S. facility to make the list.
In preparation of the upcoming Super Bowl, Glendale has opened the Media Center, which takes up two
floors of the Glendale Conference Center and is attached to the Marriott Renaissance Hotel. The Media
Center is able to expand up to 40,000 square feet. This amount of space will be necessary as it will be the
media center for national events such as the Fiesta Bowl, future BCS Championship games and the Super
Bowl. The Media Center is also the new home of the publicly owned Glendale 11 cable station.
The Glendale Regional Public Safety Training Center opened its doors to the first class of firefighter
recruits on July 23, 2006. This center will be utilized by Maricopa County Community College District,
the cities of Surprise, Peoria, Avondale and Glendale for training of public safety personnel.
Substantial investments have been made by the City to act and remain current on issues faced by the water
and sewer system in addition to proceeding with the necessary federally mandated upgrades. These have
been and continue to be funded with revenue bonds/obligations in order to meet the long-term needs of the
City.

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The debt service funds of the City are backed by property taxes or excise taxes. The City has continued its
practice of paying off its general obligation and revenue obligation bond debt rapidly.
Cash management policies and practices. Staff invests temporarily idle cash in repurchase agreements
collateralized by high quality U.S. government securities, the Arizona State Treasurer’s Local Government
Investment Pool or U.S. Treasury obligations.
The City’s investment policy is to minimize credit and market risks while maintaining a competitive yield
on its portfolio. Accordingly, deposits are either insured by the Federal Deposit Insurance Corporation or
collateralized. All collateral on deposits is held by the City’s agent or financial institution’s trust
department in the City’s name. Categorized investments are classified in credit risk category 1 as defined
by the Governmental Accounting Standards Board (GASB).
Risk management. The City continued its self-insurance program for public liability and property damage
claims. As part of the Risk Management Plan, resources are maintained in the risk management fund to
meet potential losses. In the event of a deficit at June 30, premiums charged to other funds are increased in
the following fiscal year to cover shortages. The City has implemented various risk control techniques
such as employee accident prevention training to minimize accident-related losses. The Risk Management
Division also conducts a competitive bidding process to obtain other types of commercial insurance. An
employee benefit fund was established in prior years to help offset the rising benefit costs to the City. An
actuarial study of health insurance funding indicated that creating a separate fund and holding the excess
payments and accumulated interest in it would be the best way to develop reserves. Any unused premiums
and interest would remain in the fund for future expenses.
Pension and other post-employment benefits. Other than the pension benefits provided through the
Arizona State Retirement System or the Arizona Public Safety Personnel Retirement System, the City does
not provide post-employment benefits. However, the City does allow retired employees to participate in
the health care and life insurance plans provided to active employees. The plans provide health, dental,
vision, and life insurance to participants. The retired employees pay the entire cost of their participation in
the plan.
The City makes no contribution to the plan for former employees. Since the number of retirees is small,
and their portion of the premium cost is paid to providers at the same time as the general fund’s employee
portion, the City has chosen to account for monies received from retirees, but not yet paid out, as part of the
internal service funds. The impact of Other Post-Employment Benefits (OPEB) due to GASB 45 is
currently under review.
Awards and acknowledgements. The Government Finance Officers Association (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual
Financial Report (CAFR) for the fiscal year ended June 30, 2006. This was the nineteenth consecutive year
the City has received this prestigious award, and the twenty-first year overall. In order to be awarded a
Certificate of Achievement, the government published an easily readable and efficiently organized CAFR.
This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual
budget document dated 2006-07. This is the eighteenth year in a row that the City has received the highest
form of recognition in governmental budgeting.

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Glendale, Arizona
and Neighboring Communities

7

Glendale City Officials

ELAINE M. SCRUGGS
Mayor

JOYCE V. CLARK
Councilmember
Yucca District

YVONNE KNAACK
Councilmember
Barrel District

STEVE E. FRATE

Councilmember
Sahuaro District

H. PHILIP LIEBERMAN
Councilmember
Cactus District

DAVID M. GOULET
Councilmember
Ocotillo District

MANUEL D. MARTINEZ
Vice Mayor/
Councilmember
Cholla District

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ED BEASLEY

City Manager

Glendale Council District Boundaries

Pinnacle Peak Rd.
Deer Valley Rd.

CHOLLA

Beardsley Rd.

Bell Rd.

N

Av
en
ue

SAHUARO

G
ra
nd

Loop
101

Union Hills Dr.

Greenway Rd.
Thunderbird Rd.
Cactus Rd.

BARREL

Peoria Ave.
Olive Ave.
Northern Ave.
Glendale Ave.

YUCCA

Bethany Home Rd.

OCOTILLO

YUCCA

CACTUS

YUCCA

9

43rd Ave.

51st Ave.

59th Ave.

67th Ave.

75th Ave.

83rd Ave.

91st Ave.

99th Ave.

107th Ave.

115th Ave.

El Mirage Rd.

Dysart Rd.

Litchfield Rd.

Bullard Ave.

Reems Rd.

Sarival Ave.

Cotton Ln.

Citrus Rd.

Perryville Rd.

Camelback Rd.

Mayor & Council
Boards
& Commissions

City Clerk
Pam Hanna

Intergovernmental
Programs
Dana Tranberg

Marketing &
Communications
Julie Frisoni

City Auditor
Candace MacLeod

Community Action
Program
Norma Alvarez

City Manager
Ed Beasley

City Court
Judge Elizabeth Finn

Assistant
City Manager
Pam Kavanaugh
Assistant to the Mayor
Steven Methvin

Human Resources
Alma Carmicle

City Attorney
Craig Tindall

Police
Chief Steven Conrad

Fire
Chief Mark Burdick

City Manager Relations
Cathy Gorham
Mega Events
Strategic Initiatives

Homeland Security
Rob Gunter

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Council Office
Kristen Kennedy

Deputy City Manager
Gloria Santiago-Espino

Deputy City Manager
Ken Reedy

Deputy City Manager
Art Lynch

Deputy City Manager
Horatio Skeete

Community Services

Public Works

Administrative Services

Community Development

Parks & Recreation
Rebecca Benna

Envir. Resources
Doug Kukino

Finance
Ray Shuey

Transportation
Jamsheed Mehta

Library
Rodeane Widom

Field Operations
Stuart Kent

Budget & Mgt.
Sherry Schurhammer

Planning
Jon Froke

Comm. Partnerships
Erik Strunk

Utilities
Roger Bailey

Economic Dev.
Karen Thoreson

Engineering
Larry Broyles

Information Tech.
Chuck Murphy

Code Compliance
Dan Gunn
Building Safety
Deborah Mazoyer

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

FINANCIAL
SECTION

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

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City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

MANAGEMENT’S
DISCUSSION &
ANALYSIS
(Required Supplementary Information)

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

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CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Management’s Discussion and Analysis
As management of the City of Glendale (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30,
2007. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal. All amounts, unless otherwise indicated, are
expressed in thousands of dollars.
Financial highlights
The financial statements, which follow the Management’s Discussion and Analysis (MD&A), provide
these significant key financial highlights for 2006-07 as follows:
•

The City’s total net assets increased $54,805 or 5.30%. The governmental net assets increased by
$42,607 or 6.77%, and the business-type net assets increased by $12,198 or 3.02%.

•

General revenues from governmental activities increased $13,549 or 7.79% and were 65.40% of all
revenues from governmental activities. Program specific revenues in the form of charges for services
and grants and contributions increased $28,103 or 39.50%.

•

The business-type activities total revenues increased by $9,101 or 9.37%.

•

The total cost of all City programs increased by $42,296 or 14.29%.

•

A major governmental fund, the general fund, had $157,791 in revenues, which is an increase of
$11,323 or 7.73% from the prior year. The primary sources of revenue in the general fund are local
taxes and intergovernmental taxes. The total expenditures of the general fund were $162,737, which is
an increase of $25,147 or 18.28%. The fund balance decreased $11,073 or 15.28%. This decrease
resulted mainly from an increase in general government, public safety and debt service expenditures.

•

The City issued by way of voter authorization: 1) $61,000 in general obligation bonds that will be
used to pay the costs of acquisitions, improvements and equipment for proposed projects such as
streets and parking, public safety, flood control, and parks and recreation, and 2) $44,500 in
subordinate lien water and sewer revenue obligation bonds that will be used in the various
improvements and extensions of existing water and sewer projects, replacement and rehabilitation of
water lines throughout the city, and construction of water treatment plants and associated costs.

Overview of the financial statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The Government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Net assets are categorized as capital assets less related
debt, restricted by an outside party, and unrestricted. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
The statement of activities presents information showing how the City’s net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused compensated absences).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include general government, public safety, public
works, community services, community environment, street maintenance, and interest on long-term debt.
The business-type activities of the City include water and sewer, landfill, sanitation, and housing.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The City maintains 16 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the major funds. Data from the other 13 governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major governmental
funds is provided in the form of combining statements and schedules.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its water and sewer, landfill, sanitation, and
housing services. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses internal service funds to account for its risk
management, workers’ compensation and employee benefit activities. Because these services
predominantly benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer, and landfill services, which are considered to be major funds of the City. Data from the other two
enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of the
non-major enterprise funds are provided in the form of combining statements and schedules. Conversely,
all three internal service funds are combined into a single, aggregated presentation in the proprietary fund

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CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
financial statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Additional required supplementary information. Following the basic financial statements is Required
Supplementary Information (RSI) that further explains and supports the financial information in the
financial statements. RSI presents the budgetary comparison schedule for general fund and transportation
special revenue fund.
Other information. The combining statements referred to earlier in connection with non-major
governmental funds and internal service funds are presented immediately following the notes to the RSI.
Government-wide financial analysis
As noted earlier, net assets may serve over time as a useful indicator of a City’s financial position. In the
case of the City, assets exceeded liabilities by $1,088,479 as of June 30, 2007.
By far the largest portion of the City’s net assets reflects its investment in capital assets (e.g., land,
building, machinery, and equipment); less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens. Consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The City’s financial position is the product of several financial transactions including the net results of
activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the
depreciation of capital assets.

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15

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Net assets
The following table reflects the condensed Statement of Net Assets compared to prior year.
Condensed Statement of Net Assets
As of June 30, 2007, and 2006
(in thousands)
Governmental
Activities
2007
2006
Current and other assets
Capital assets, net
Total assets

$

303,981
1,025,808
1,329,789

$

Total
Primary
Government

Business-type
Activities
2007
2006

293,114
869,900
1,163,014

$

198,700
511,525
710,225

$

196,267
457,034
653,301

2007
$

502,681
1,537,333
2,040,014

2006
$

489,381
1,326,934
1,816,315

Current liabilities
Noncurrent liabilities
Total liabilities

57,813
600,272
658,085

44,443
489,474
533,917

18,295
275,155
293,450

12,003
236,721
248,724

76,108
875,427
951,535

56,446
726,195
782,641

Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets

446,828
180,303
44,573
671,704

398,517
155,163
75,417
629,097

249,569
11,881
155,325
416,775

233,387
12,437
158,753
404,577

696,397
192,184
199,898
1,088,479

631,904
167,600
234,170
1,033,674

$

$

$

$

$

$

At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
assets, both for the City as a whole, as well as for its separate governmental and business-type activities.
The same situation held true for the prior fiscal year.

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16

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
The following table presents a summary of the changes in net assets compared to prior year.

Changes in Net Assets
As of June 30, 2007, and 2006
(in thousands)
Governmental
Activities
2007
2006
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
Total program revenues

$

36,438
36,566
26,247
99,251

$

32,769
31,973
6,406
71,148

Total
Primary
Government

Business-type
Activities
2007
2006

$

87,182
8,254
5,125
100,561

$

2007

79,251
8,020
5,403
92,674

$

123,620
44,820
31,372
199,812

2006

$

112,020
39,993
11,809
163,822

General revenues:
Property taxes
Sales taxes
State shared sales tax
Urban revenue sharing
(state shared income tax)
Auto in-lieu taxes
Investment earnings, unrestricted
Gain on disposal of capital assets
Miscellaneous
Total revenues

23,085
97,825
23,037

21,386
90,968
23,298

-

-

23,085
97,825
23,037

21,386
90,968
23,298

27,518
10,044
5,557
202
301
286,820

22,909
10,444
4,395
348
272
245,168

5,381
103
140
106,185

3,466
844
100
97,084

27,518
10,044
10,938
305
441
393,005

22,909
10,444
7,861
1,192
372
342,252

Expenses:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Other
Interest on long-term debt
Water and sewer
Landfill
Sanitation
Housing
Total expenses
Excess before transfers
Transfers in (out)

37,992
92,405
14,816
45,481
4,698
24,906
23,551
243,849
42,971
(364)

33,329
75,277
13,995
40,275
4,125
22,720
3,020
16,883
209,624
35,544
700

63,289
8,264
13,847
8,951
94,351
11,834
364

55,607
7,950
13,257
9,466
86,280
10,804
(700)

37,992
92,405
14,816
45,481
4,698
24,906
23,551
63,289
8,264
13,847
8,951
338,200
54,805
-

33,329
75,277
13,995
40,275
4,125
22,720
3,020
16,883
55,607
7,950
13,257
9,466
295,904
46,348
-

Increase in net assets
Net assets, beginning
Net assets, ending

42,607
629,097
671,704

36,244
592,853
629,097

12,198
404,577
416,775

54,805
1,033,674
1,088,479

46,348
987,326
1,033,674

$

$

$

$

10,104
394,473
404,577

$

Changes in net assets. The increase in net assets for the governmental activities was primarily due to
developer contributed capital of $10,250 and an increase in general revenues of $13,549 from prior year.
The City’s revenue from governmental activities for the fiscal year ended June 30, 2007, was $286,820.
The cost of programs and services for governmental activities were $243,849.
The increase in net assets for the business activities was primarily an increase of $7,655 in water and sewer
charges for services due to a rate increase, in addition to developer contributed capital of $4,574. The

17

$

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
City’s revenue from business-type activities for the fiscal year ended June 30, 2007, was $106,185. The
cost of programs and services were $94,351.
expenses

Expenses and Program Revenues - Governmental Activities

program revenues
$10 0 ,0 0 0
$9 0 ,0 0 0
$8 0 ,0 0 0
$70 ,0 0 0
$6 0 ,0 0 0
$50 ,0 0 0
$4 0 ,0 0 0
$3 0 ,0 0 0
$2 0 ,0 0 0
$10 ,0 0 0
$General
g o vernment

Pub lic s afet y

Pub lic wo rks

Co mmunity
s ervices

Co mmunity
enviro nment

Expenses and Program Revenues - Business-type Activities

Street
maintenance

Int eres t o n lo ng t erm d eb t

expenses
program revenues

$8 0 ,0 0 0

$70 ,0 0 0

$6 0 ,0 0 0

$50 ,0 0 0

$4 0 ,0 0 0

$3 0 ,0 0 0

$2 0 ,0 0 0

$10 ,0 0 0

$Water and s ewer

Land fill

Sanitat io n

18

Ho us ing

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Revenue Sources Fiscal Year 2006-07
Inves t ment earning s ,
unres t rict ed
2 .78 %

Auto in-lieu t axes
2 .56 %

Gain o n d is p o s al o f cap ital
as s ets
0 .0 8 %

Urb an revenue s haring
(s t ate s hared inco me tax)
7.0 0 %

M is cellaneo us
0 .12 %

St ate s hared s ales t ax
5.8 6 %

Charg es fo r s ervices
3 1.4 6 %
Sales taxes
2 4 .8 9 %
Op erating g rants and
co nt rib utio ns
11.4 0 %
Pro p ert y taxes
5.8 7%

Cap ital g rant s and
co ntrib utio ns
7.9 8 %

Functional Expenses Fiscal Year 2006-07

Sanitat io n
4 .0 9 %

Ho us ing
2 .6 5%
General g o vernment
11.2 3 %

Land fill
2 .4 4 %

Pub lic s afety
2 7.3 2 %

Wat er and s ewer
18 .71%

Interes t o n lo ng -t erm d eb t
6 .9 6 %
Ot her
0 .0 2 %

Street maint enance
7.3 6 %

Pub lic wo rks
4 .3 8 %
Co mmunit y enviro nment
1.3 9 %

Co mmunit y s ervices
13 .4 5%

19

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Financial analysis of the City’s funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a City’s
net resources available for spending at the end of the fiscal year.

The financial performance of the City as a whole is reflected in its governmental funds.
•

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $209,710, a decrease of $343 or 0.16% in comparison with the prior year.

•

Unreserved undesignated fund balance, which is available for spending at the City’s discretion within
a fund, was $119,553, a decrease of $10,089 or 7.78% from the prior year.

•

The City also had $34,628 in unreserved, designated fund balance, which represents self-imposed
limitations on the use of otherwise available expendable financial resources in governmental funds as
discussed in Note XV.

•

The remainder of fund balance is reserved to indicate that it is not available for new spending because
it has already been committed for a variety of restricted purposes, such as perpetual care for the City’s
cemetery, debt service, and development impact fees.
Summary of Reserved Fund Balances
by Fund Type
(in thousands)
General
Special revenue
Debt service
Capital projects
Permanent
Total

$ 10,500
26,750
12,191
919
5,169
$ 55,529

The general fund is the chief operating fund of the City. At the end of the current fiscal year, the
unreserved fund balance of the general fund was $50,880, while total fund balance reached $61,380. As a
measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total
fund balance to total fund expenditures. Unreserved fund balance represents 31.27% of total general fund
expenditures, while total fund balance represents 37.72% of that same amount.
The transportation fund accounts for the City’s public transit program. The fund saw a decrease in fund
balance of $23,146 for the fiscal year ended June 30, 2007. This decrease is due to increase in capital
outlay.
The municipal property corporation construction fund accounts for the resources used to finance municipal
projects. The fund saw an increase in fund balance of $1,166 for the fiscal year ended June 30, 2007. This
was due to an increase in investment income.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.

20

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Net assets of the enterprise funds and the internal service funds increased $12,168 or 2.95%. The
enterprise funds’ total net assets were 2.84% restricted and 37.42% unrestricted. Internal service funds
were 100.0% unrestricted.
The water and sewer fund accounts for operations, maintenance and construction projects of City-owned
water and sewer systems. The fund saw an increase in net assets of $8,094 for the fiscal year ended June
30, 2007. This increase is due to: 1) operating revenue greater than operating expenses, and 2) increased
investment earnings.
The landfill fund accounts for operations of the City-owned landfill. The fund saw an increase of $2,436
for the fiscal year ended June 30, 2007. This increase is due to: 1) operating revenues exceeding operating
expenses, and 2) increased investment earnings.
The internal service fund accounts for risk management, workers’ compensation, and employee benefits
provided to other departments. The fund saw a decrease of $205 for the fiscal year ended June 30, 2007.
This decrease was due to an increase in insurance claims through employee benefits.
General fund budgetary highlights
Consistent with national economic conditions, the City's investment revenue was positively impacted by
economic improvement.
•

Investment revenue was improved this year as a result of stable to increased interest rates and
additional cash on hand to invest.

•

General fund revenues exceeded the final amended budget by $4,744 or 2.72%, primarily due to
increased charges for services.

•

General fund expenditures were less than the final amended budget by $39,189 or 17.54%. This
positive variance resulted from $12,832 in leftover contingencies appropriation at fiscal year-end.

Capital asset and debt administration
Capital assets. The City’s investment in capital assets (net of accumulated depreciation) as of June 30,
2007, for its governmental-type activities was $1,025,808 and for the business-type activities was
$511,525. The investment in governmental and business-type capital assets consisted of land, buildings,
machinery and equipment, and infrastructure for streets, parks, airport and street lighting, water and
wastewater treatment plants.
Major capital asset events during the current fiscal year included the following:
•

Began construction of Regional Public Safety Training Facility, $31,056

•

Began construction of downtown pedestrian plaza, $11,929

•

Began construction of downtown parking structure, $3,388

•

Began construction of media center, conference center, and parking garage, $53,204

•

Began construction of Bethany Home outfall channel, $2,948

•

Improvement of streets and pavements, $18,248 and $24,430

21

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
The following table is a summary of capital assets reflected in the June 30, 2007, financial statements as
compared to last year’s financial statements.
Capital Assets at Year End
(Net of depreciation)
(in thousands)

Construction in progress
Land
Artwork
Buildings
Improvements other than buildings
Infrastructure-streets
Infrastructure-parks
Infrastructure-airport
Infrastructure-flood/storm drains
Water lines
Sewer lines
Water treatment plant
Sewer treatment plant
Meters and services
Fire hydrants
Machinery and equipment
Computer equipment
Software
Automotive equipment
Total

$

$

Governmental
Activities
2007
2006
$
98,504
251,824
63,372
70,205
1,189
1,448
145,570
141,068
71,401
70,571
371,535
373,865
51,687
50,029
8,156
7,844
26,804
26,954
17,063
15,515
421
1,028
241
191
13,957
15,266
1,025,808
$
869,900

$

$

Business-type
Activities
2007
2006
$
47,972
89,120
11,609
11,609
8,890
8,485
19,773
21,246
69,298
73,613
80,529
79,874
65,626
78,372
123,531
119,743
19,942
19,198
3,580
3,478
458
799
217
214
5,609
5,774
511,525
$
457,034

Total
Primary
Government
$

$

2007
340,944
81,814
1,448
149,553
91,817
373,865
50,029
7,844
26,954
73,613
79,874
78,372
119,743
19,198
3,478
16,314
1,242
191
21,040
1,537,333

$

$

2006
146,476
74,981
1,189
154,460
91,174
371,535
51,687
8,156
26,804
69,298
80,529
65,626
123,531
19,942
3,580
17,521
638
241
19,566
1,326,934

Additional information on capital assets can be found in Note IV of the financial statements.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $825,056
compared to $681,679 last year, a 21.03% net increase. Of this amount, $236,349 comprises debt backed
by the full faith and credit of the City.

General obligation
Special assessments
Highway user revenue bonds
Municipal property corporation
revenue bonds
Capital lease obligation
Water and sewer
revenue bonds/obligations
Notes payable
Total

$

$

Governmental
Activities
2007
2006
224,234 $
175,155
39
34,065
35,940

Business-type
Activities
2007
2006
12,115 $
13,075
-

Total
Primary
Government
$

2007
236,349
34,065

$

2006
188,230
39
35,940

293,530
12,492

223,988
12,875

2,349

2,613

293,530
14,841

223,988
15,488

6,279
570,600

15,689
463,686

229,130
10,862
254,456

190,020
12,285
217,993

229,130
17,141
825,056

190,020
27,974
681,679

$

$

$

$

The City’s total long-term debt increased by $143,377 from the prior year. A key factor in this increase
was the issuance of general obligation, subordinate lien water and sewer revenue obligations, and
additional drawdown of municipal property corporation bonds during the year.

22

$

CITY OF GLENDALE, ARIZONA
Management’s Discussion and Analysis (MD&A)
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

The City maintains an “AA” rating from Standard & Poor’s and an “Aa2” rating from Moody’s for general
obligation debt. The water and sewer revenue bonds have been rated “Aa2” by Moody’s and “AA” by
Standard & Poors.
The Arizona Constitution provides that the general obligation bonded indebtedness for a city for general
municipal purposes may not exceed 6% of the secondary assessed valuation of the taxable property in that
city. In addition to the 6% limitation for general municipal purpose bonds, cities may issue general
obligation bonds up to 20% of the secondary assessed valuation for supplying such city with water, sewer,
artificial light, public safety, law enforcement, fire and emergency services, streets and transportation
facilities, and for the acquisition and development of land for open space preserves, parks, playgrounds and
recreational facilities. The City’s current unused 6% and 20% debt limitation on June 30, 2007, was
$20,226 and $124,482, respectively.
Additional information on long-term debt can be found in Note IX of the financial statements.
Economic factors and next year’s budgets and rates
The adopted fiscal year 2007-08 budget is $942,000 (up 3.18% from 2006-07), including a $363,200
operating budget (an increase of 7.77% from 2007) and $418,800 in capital outlay (down 3.72% from
2007). The fiscal year 2007-08 budget includes $85,600 contingency appropriation to cover emergency
expenses or revenue shortages.
•

While the regional economy remains strong, it is traditionally largely driven by construction, due to the
continued population growth of the state and metropolitan area, as well as the financial services and
tourism sectors. Arizona cities remain dependent on sales taxes and other economically sensitive tax
revenues and are susceptible to slowdowns in the economy.

•

The City’s unemployment rate for June 2007 was 3.10%, which is a decrease from a year ago. This
compares favorably to the state’s average unemployment rate of 3.60% and the national average rate of
4.50%.

Request for information
This financial report is designed to provide a general overview of the City’s finances for all those with an
interest in the City’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Chief Financial Officer, 5850 West
Glendale Avenue, Suite 302, Glendale, Arizona 85301.

23

This page left blank intentionally.

24

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

BASIC
FINANCIAL
STATEMENTS

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

This page left blank intentionally.

City of Glendale, Arizona
Statement of Net Assets
June 30, 2007
(amounts expressed in thousands)
Governmental
Activities
ASSETS
Equity in pooled cash and investments
Receivables (net of allowance for uncollectibles)
Property taxes
Accounts
Accrued interest
Intergovernmental receivable
Internal balances
Inventories and prepaid items
Restricted cash and investments
Capital assets:
Non-depreciable
Depreciable (net)
Deferred receivable
Water storage right (net)
Equity in joint venture
Total assets

$

$

986
73,930
1,518
12,131
1,045
5,123
12,941

74,193

Total
$

10,049
133
245
(1,045)
2,406
51,309

266,476
986
83,979
1,651
12,376
7,529
64,250

.

LIABILITIES
Vouchers payable
Accounts payable
Retainage payable
Accrued expenses
Accrued interest payable
Intergovernmental payable
Deposits
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital projects
Debt service
Transportation
Highway and streets
Vehicle replacement
Development impact fee
Revenue bond retirement, replacement, and extension
Perpetual care - nonexpendable
Other purposes
Unrestricted
Total net assets

192,283

Primary Government
Business-type
Activities

$

323,477
702,331
4,024
1,329,789

100,729
410,796
6,628
54,782
710,225

424,206
1,113,127
4,024
6,628
54,782
2,040,014

30,789
650
2,777
12,367
317
1,326
9,587

11,457
130
187
464
4,911
202
944
-

42,246
780
2,964
464
17,278
519
2,270
9,587

35,847
564,425
658,085

9,855
265,300
293,450

45,702
829,725
951,535

446,828

249,569

696,397

107,955
28,720
741
2,301
6,659
23,788
5,240
4,899
44,573
671,704

1,345
8,689
1,847
155,325
416,775

107,955
30,065
741
2,301
6,659
23,788
8,689
5,240
6,746
199,898
1,088,479

The notes to the financial statements are an integral part of this statement.

25

$

$

City of Glendale, Arizona
Statement of Activities
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Charges for
Services

Expenses
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Interest on long-term debt
Total governmental activities
Business-type activities:
Water and sewer
Landfill
Sanitation
Housing
Total business-type activities
Total primary government

$

$

37,992
92,405
14,816
45,481
4,698
24,906
23,551
243,849

63,289
8,264
13,847
8,951
94,351
338,200

$

$

11,610
1,964
531
22,285
48
36,438

62,125
9,742
14,653
662
87,182
123,620

Program Revenues
Operating
Grants and
Contributions

$

$

768
7,443
257
4,223
4,388
19,487
36,566

8,254
8,254
44,820

Capital
Grants and
Contributions

$

$

2
10,752
5,236
10,257
26,247

4,877
248
5,125
31,372

General revenues:
Taxes:
Property taxes levied for:
General purposes
Debt service
Sales taxes
Unrestricted state shared sales tax
Unrestricted urban revenue sharing (state shared income tax)
Auto in-lieu taxes
Investment earnings, unrestricted
Gain on disposal of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The notes to the financial statements are an integral part of this statement.

26

Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental
Business-type
Activities
Activities
Total

$

$

(25,612)
(72,246)
(14,028)
(13,737)
(310)
4,886
(23,551)
(144,598)

$

-

$

(25,612)
(72,246)
(14,028)
(13,737)
(310)
4,886
(23,551)
(144,598)

(144,598)

3,713
1,478
806
213
6,210
6,210

3,713
1,478
806
213
6,210
(138,388)

3,743
19,342
97,825
23,037
27,518
10,044
5,557
202
301
(364)
187,205
42,607
629,097
671,704

5,381
103
140
364
5,988
12,198
404,577
416,775

3,743
19,342
97,825
23,037
27,518
10,044
10,938
305
441
193,193
54,805
1,033,674
1,088,479

$

$

27

City of Glendale, Arizona
Balance Sheet
Governmental Funds
June 30, 2007
(amounts expressed in thousands)
Major Funds

General
ASSETS
Equity in pooled cash and investments
Receivables, net of allowance for doubtful accounts:
Property taxes
Accounts
Accrued interest
Due from other funds
Intergovernmental receivable
Inventories and prepaid items
Restricted cash and investments
Deferred receivables
Total assets
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
Accounts payable
Retainage payable
Compensated absences - current
Intergovernmental payable
Due to other funds
Deposits
Matured interest payable
Deferred revenue
Matured bonds payable
Total liabilities
Fund Balances:
Reserved (Note XV)
Unreserved:
Designated (Note XV):
General fund
Special revenue funds
Undesignated, reported in:
General fund
Special revenue funds
Capital projects funds
Total fund balances
Total liabilities and fund balances

$

59,185

$

160
9,350
1,423
3,229
2,926
219
602
77,094

$

$

9,574
645
7
943
315
1,282
2,948
15,714

Transportation

Municipal
Property Corp
Construction

Other Non-major
Governmental
Funds

$

6,079

$

20,854

$

90,322

$

2,155
2,655
10,889

$

20,854

$

826
62,420
95
6,550
158
12,189
4,024
176,584

$

8,687
1,013
77
184
9,961

$

1,787
1,233
3,020

$

9,469
5
524
85
2
3,210
44
9,072
7,009
17,596
47,016

Total
Governmental
Funds
$

176,440

$

986
73,925
1,518
3,229
12,131
377
12,791
4,024
285,421

$

29,517
650
2,777
1,105
317
3,210
1,326
9,072
10,141
17,596
75,711

10,500

-

-

45,029

55,529

3,405
-

716

-

30,507

3,405
31,223

47,475
61,380
77,094

212
928
10,889

17,834
17,834
20,854

2,934
51,098
129,568
176,584

47,475
3,146
68,932
209,710
285,421

$

The notes to the financial statements are an integral part of this statement.

28

$

$

$

City of Glendale, Arizona
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2007
(amounts expressed in thousands)
Amounts reported for governmental activities in the statement of net assets are different because:
Fund balances - Total governmental funds balance sheet

$

Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Governmental capital assets
Less accumulated depreciation

$

209,710

1,329,969
(304,161)
1,025,808

Other long-term assets are not available to pay for current period
expenditures and, therefore, are deferred in the funds.

5,698

Internal service funds are used by management to charge
the costs of workers' compensation, risk management, and
employee benefits to individual funds. The assets and liabilities
of the internal service funds are included in governmental activities
in the statement of net assets.

6,901

Long-term liabilities, including bonds payable are not due and payable
in the current period and, therefore, are not reported in the funds.
Bonds payable
Notes payable
Capital lease obligations
Developer payable obligations
Compensated absences
Bond premium
Arbitrage rebate payable

(534,233)
(6,279)
(12,492)
(1,570)
(12,288)
(6,363)
(447)
(573,672)

Unmatured interest payable

(3,295)

Deferred revenue that is measurable but not yet available for governmental fund
activities is recognized as revenue for governmental-wide activities.
Net assets of governmental activities

554
$

The notes to the financial statements are an integral part of this statement.

29

671,704

City of Glendale, Arizona
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Major Funds

General
REVENUES
Taxes and special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment income
Miscellaneous
Total revenues

$

EXPENDITURES
Current:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Miscellaneous
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Long-term debt issued
Premium on long-term debt issued
Proceeds from equipment disposal
Capital lease proceeds
Other uses:
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
Fund balances, July 1
Fund balances, June 30

$

70,324
10,316
61,156
4,783
3,932
4,959
2,321
157,791

Transportation

Municipal
Property Corp
Construction

Other Non-Major
Governmental
Funds

$

$

$

25,051
4,613
197
997
9
30,867

1,281
19
1,300

25,747
7,523
41,930
5,106
3,668
1,863
85,837

Total
Governmental
Funds
$

121,122
17,839
107,699
10,086
3,932
10,905
4,212
275,795

22,852
77,508
12,089
26,667
247
659
2,834

9,449
-

108
-

1,564
9,245
66
3,034
4,410
12,713
225

24,524
86,753
12,155
39,150
4,657
13,372
3,059

8,476
1,202
10,203
162,737

1,414
176
47,136
58,175

72,221
72,329

18,206
19,252
49,861
118,576

28,096
20,630
179,421
411,817

(4,946)

(27,308)

(71,029)

(32,739)

(136,022)

838
668

4
-

72,327
-

61,000
1,198
8
-

133,327
1,198
850
668

977
(8,610)
(6,127)

5,176
(1,018)
4,162

(132)
72,195

18,792
(15,549)
65,449

24,945
(25,309)
135,679

(11,073)

(23,146)

1,166

32,710

72,453
61,380

24,074
928

16,668
17,834

96,858
129,568

$

The notes to the financial statements are an integral part of this statement.

30

$

$

(343)
$

210,053
209,710

City of Glendale, Arizona
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Amounts for governmental activities in the statement of net assets are different because:
Net change in fund balances - total governmental funds

$

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. This is the amount by which capital
outlays of $179,421 exceeded depreciation of $35,030 for the current period.
The net effect of various transactions involving capital is to increase net assets.
Capital contributions
Disposals
Gain on sales

(343)

144,391

$

10,250
(850)
202
9,602

Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the governmental funds.
The net effect of long-term debt issuance and the related transactions is
to increase net assets.
Bond premium
Bonds issuance costs
Principal paid
Long-term debt issued
Capital lease proceeds
Arbitrage rebate

1,140

(1,198)
377
28,096
(133,327)
(668)
(447)
(107,167)

Compensated absences 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.

(529)

Internal service funds are used by management to charge the costs of workers'
compensation, risk management, and employee benefits individual funds.

(793)

The net revenue of certain activities as unearned revenue is reported
in governmental activities.

(4)

Expenses on the statement of activities differ from governmental
funds because of the portion not accrued on the governmental funds.

Change in net assets of governmental activities

(3,690)

$

The notes to the financial statements are an integral part of this statement.

31

42,607

City of Glendale, Arizona
Statement of Net Assets
Proprietary Funds
June 30, 2007
(amounts expressed in thousands)
Business-type Activities - Enterprise Funds
Other
Proprietary
Major Funds
Water and Sewer
Landfill
Funds
ASSETS
Current assets:
Equity in pooled cash and investments
Receivables:
Accounts
Allowance for uncollectibles
Accrued interest
Intergovernment receivable
Inventories and prepaid items
Total current assets
Noncurrent assets:
Restricted cash and investments
Capital assets:
Capital assets
Accumulated depreciation
Capital assets, net
Water storage rights, net
Equity in joint venture
Total noncurrent assets
Total assets

$

$

51,303

$

6,012

$

1,745
(26)
236
5
7,972

-

628,790
(139,287)
489,503
6,628
54,782
602,216
659,185

$

21,319
769
(3)
22,085

7,790
(226)
133
9
2,401
56,969

LIABILITIES
Current liabilities:
Vouchers payable
Accounts payable
Retainage payable
Compensated absences
Accrued expenses
Due to other funds
Intergovernment payable
Deposits
Unearned rent
Estimated claims payable
Current portion of long-term debt:
General obligation bonds
Unamortized premium on debt issuance
Revenue bonds/obligations payable
Capital lease obligations
Other long-term debt
Interest payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
General obligation bonds
Unamortized premium on debt issuance
Revenue bonds/obligations payable
Other long-term debt
Notes payable
Capital lease obligations
Claims payable
Estimated closure and post-closure costs
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Debt service
Revenue bond retirement, replacement and extension
Other purposes
Unrestricted
Total net assets

46,862

Total

$

10,304
(255)
133
245
2,406
87,026

6

21,347
(8,117)
13,230
13,230
35,315

74,193

Governmental
Activities Internal
Service Funds

80
15,923

51,309

21,045
(12,253)
8,792
8,798
16,770

15,843

150

671,182
(159,657)
511,525
6,628
54,782
624,244
711,270

150
16,073

11,087
82
187
1,043
464
185
667
-

239
191
154
-

131
48
278
19
17
118
5
-

11,457
130
187
1,512
464
19
202
939
5
-

1,272
5,027

790
400
5,680
623
4,878
26,086

189
13
786

661
20
1,297

979
400
5,680
661
623
4,911
28,169

6,299

277
10,805
6,710
223,450
484
10,239
251,965
278,051

60
331
10,977
11,368
12,154

249
30
1,688
1,967
3,264

586
11,136
6,710
223,450
514
10,239
1,688
10,977
265,300
293,469

2,873
2,873
9,172

230,416

12,710

6,443

249,569

-

1,345
8,689
413
140,271
381,134

10,451
23,161

1,434
5,629
13,506

1,345
8,689
1,847
156,351
417,801

6,901
6,901

$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net assets of business-type activities
The notes to the financial statements are an integral part of this statement.

32

$

$

(1,026)
416,775

$

City of Glendale, Arizona
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Business-type Activities - Enterprise Funds
Other
Major Funds
Proprietary
Water and Sewer
Landfill
Funds
Operating revenues:
Intergovernmental
Metered water sales
Sewer service charges
Container service
Curb service
Landfill user fees
Self-insurance premium
Recycling sales
Other fees
Total operating revenues

$

11
31,038
23,614
1,369
56,032

$

6,310
3,301
9,611

Operating expenses:
Water
Sewer
Landfill
Housing
Closure/post-closure care adjustment
Sanitation
Administrative and general
Insurance claims
Amortization and depreciation
Total operating expenses
Operating income (loss)

17,001
12,459
11,365
13,673
54,498
1,534

6,493
589
1,132
8,214
1,397

Nonoperating revenues (expenses):
Impact fees
Investment income
Interest expense
Net loss from joint venture
Amortization of bond issuance cost
Gain on disposal of assets
Intergovernmental - capital grants
Total nonoperating revenue (expenses)

6,242
4,372
(8,564)
(33)
(83)
38
1,972

131
1,091
(29)
1
1,194

3,506
4,574
14
8,094

2,591
(155)
2,436

Income before contributions and transfers
Capital contributions
Transfers in
Transfers out
Change in net assets
Total net assets - beginning
Total net assets - ending

$

373,040
381,134

$

20,725
23,161

$

33

$

8,582
12,775
1,319
22,676
876

1,338
505
1,843

$

8,265
31,038
23,614
4,968
9,659
6,310
3,301
2,040
89,195

$

17,001
12,459
6,493
8,582
589
12,775
11,365
16,124
85,388
3,807

15
210
(77)
66
248
462

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities
The notes to the financial statements are an integral part of this statement.

8,254
4,968
9,659
671
23,552

Total

Governmental
ActivitiesInternal
Service Funds

22,778
22,778
(954)

6,388
5,673
(8,670)
(33)
(83)
105
248
3,628

749
749

7,435
4,574
519
(155)
12,373

(205)
(205)

11,663
13,506

$

$

21,748
76
21,824

(175)
12,198

7,106
6,901

City of Glendale, Arizona
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Business-type Activities - Enterprise Funds
Other
Major Funds
Proprietary
Landfill
Funds
Water and Sewer
Cash flows from operating activities:
Cash received from customers
Cash received from federal government
Cash paid to suppliers:
Internal city departments
External vendors
Cash paid for insurance and in settlement
of claims
Cash paid to employees for services
Net cash provided (used) by operating activities

$

55,314
-

$

9,592
-

$

15,274
8,050

$

Governmental
Activities Internal
Service Funds

Total
80,180
8,050

$

21,836
-

(6,121)
(13,879)

(1,381)
(2,716)

(7,700)
(8,021)

(15,202)
(24,616)

-

(14,823)
20,491

(2,389)
3,106

(5,641)
1,962

(22,853)
25,559

(22,296)
(460)

14
-

(155)

8
505
-

8
519
(155)

-

14

(155)

513

372

-

(38)
45,684
(7,274)
(73,873)
6,242
(8,651)
-

(355)
(941)
131
(34)
-

(63)
(879)
15
(79)
248

(38)
45,684
(7,692)
(75,693)
6,388
(8,764)
248

-

(37,910)

(1,199)

(758)

(39,867)

-

Cash flows from investing activities:
Interest received from investments
Net cash provided by investing activities

4,482
4,482

1,091
1,091

210
210

5,783
5,783

748
748

Net increase (decrease) in cash and cash
equivalents during fiscal year

(12,923)

2,843

1,927

(8,153)

288

Cash flows from noncapital
financing activities:
Proceeds from sale of investments
Transfers in
Transfers out
Net cash provided by (used) noncapital
financing activities
Cash flows from capital and related
financing activities:
Proceeds from sale of capital assets
Proceeds from bonds sold
Principal payments on obligations
Acquisition of capital assets and rights
Impact fees
Interest payments on obligations
Capital grant proceeds
Net cash (used) by
capital and related financing activities

Cash and cash equivalents, July 1
Cash and cash equivalents, June 30

$

111,088
98,165

$

The notes to the financial statements are an integral part of this statement

34

18,476
21,319

$

4,091
6,018

$

133,655
125,502

$

15,705
15,993

Business-type Activities - Enterprise Funds
Other
Major Funds
Proprietary
Water and Sewer
Landfill
Funds
Reconciliation of operating income (loss)
to net cash provided by
operating activities:
Operating income (loss)
Adjustments to reconcile operating
income to net cash provided
by operations:
Amortization and depreciation
Changes in assets and liabilities
Accounts receivable
Intergovernmental receivable
Inventories and prepaid items
Vouchers payable
Accrued expenses
Intergovernmental payable
Due to other funds
Deposits
Deferred revenue
Compensated absences
Claims payable
Proceeds from disposal of assets
Estimated closure and post-closure
costs
Net cash provided by operating activities

Reconciliation of statement of net assets
cash and investments to the
statement of cash flows:
Per combined statement of net assets:
Equity in pooled cash and investments
Restricted cash and investments
Total cash and cash equivalents
Noncash investing, capital,
and financing activities:
Contributions of capital assets
Loss on joint venture

$

1,534

$

13,673

$
$

$

20,491

46,862
51,303
98,165

4,574
(33)

$

1,132

(784)
(7)
(355)
5,578
669
30
153
-

$

1,397

$
$

$

35

589
3,106

$

1,319

200
(25)
13
(232)
32
-

$

876

21,319
21,319

$

-

$

$

1,962

3,807

$

16,124

(35)
(119)
13
(10)
(85)
(9)
10
1
1

$

Total

Governmental
Activities Internal
Service Funds

-

(619)
(126)
(355)
5,566
659
(85)
(9)
53
(232)
186
1

$

6,012
6
6,018

$

-

$

$

589
25,559

74,193
51,309
125,502

4,574
(33)

(954)

8
79
407
-

$

$
$

$

(460)

15,843
150
15,993

-

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Notes to the Financial Statements
The Notes to the Basic Financial Statements include a summary of significant accounting policies and other
disclosures considered necessary for a clear understanding of the accompanying financial statements.
Index
Note

Page

Summary of Significant Accounting Policies.............................................................................I ............................. 37
Compliance – Excess of Expenditures Over Appropriations.................................................... II ............................. 45
Deposits and Investments ........................................................................................................ III ............................. 45
Capital Assets ..........................................................................................................................IV ............................. 47
Construction and Other Significant Commitments................................................................... V ............................. 49
Self-Insurance Funds ...............................................................................................................VI ............................. 49
Leases .....................................................................................................................................VII ............................. 51
Short-Term Debt................................................................................................................... VIII ............................. 52
Long-Term Debt ......................................................................................................................IX ............................. 52
Landfill Obligations.................................................................................................................. X ............................. 61
Interfund Transactions.............................................................................................................XI ............................. 62
Encumbrances.........................................................................................................................XII ............................. 64
Equity in Joint Venture......................................................................................................... XIII ............................. 64
Jointly Governed Organizations ........................................................................................... XIV ............................. 65
Fund Balance/Net Assets Reservation, Designation, and Restriction.................................... XV ............................. 65
Employee Retirement Systems and Pension Plans ............................................................... XVI ............................. 70
Other Post-Employment Benefits ........................................................................................XVII ............................. 72
Contingent Liabilities and Commitments .......................................................................... XVIII ............................. 72
Subsequent Events................................................................................................................ XIX ............................. 72

36

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

I.

Summary of significant accounting policies
A. Entity-wide and fund financial statements
The Entity-wide financial statements (i.e., the statement of net assets and the statement of changes in net
assets) report information on all of the activities of the primary City and its component unit.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges
for support.
There are several types of transactions that are reported in the financial statements as interfund items.
Transactions that would be treated as revenue, expenditures or expenses if they involved organizations
external to the governmental unit, like the sale of water from the water and sewer fund to various
functions of the general fund, are accounted for as revenue and expenditures or expenses in the funds
involved. Transactions that constitute reimbursement to a fund for expenditures or expenses initially
made from that fund, which are properly applicable to another fund, are recorded as expenditures or
expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is being
reimbursed. Governmental Accounting Standards Board Statement (GASBS) 34 also requires that
administrative service fees charged to other operating funds to support general services used by the other
operating funds (like purchasing, accounting and administration) should be treated as reimbursement
transactions and the revenue and expenditures/expenses reduced in the allocating fund. Transfers
between funds are included in the results of both governmental and proprietary funds (as other
sources/uses in governmental funds and as non-operating revenues/expenses in proprietary funds).
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are reported in the fund financial statements as “due to/from other funds.”
Certain transactions occurring between funds that are combined within the same fund type or displayed
in the same financial statement column for presentation in these annual financial statements have been
eliminated from the financial statements. These transactions include transfers between funds and
interdepartmental service charges. In the government-wide financial statements, only the net interfund
activity and balances between governmental activities and business-type activities are shown (reported as
“internal balances”).
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is 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 and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
B. Reporting entity
The City of Glendale, Arizona (City) was incorporated June 18, 1910, under the provisions of Article 13,
Sections 1 through 6 of the Constitution of Arizona and Title 9 of the Arizona Revised Statutes. It is
governed by a Mayor elected at large, and six district council members. The City operates under a
Council-Manager government. As required by GAAP, these financial statements present the government

37

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
and its component unit, an entity for which the City is considered to be financially accountable. Blended
component units, although legally separate entities, are, in substance, part of a government’s operations,
so data from these units are combined with data of the primary government. A discretely presented
component unit, on the other hand, is reported in a separate column in combined financial statements to
emphasize that it is legally separate from the government. The City has no discretely presented
component units.
Blended component unit
City of Glendale, Arizona, Municipal Property Corporation (MPC) is a non-profit corporation organized
under the laws of the State of Arizona to assist the City in the acquisition and financing of municipal
projects and facilities. MPC is governed by a board of directors who are responsible for approving the
corporation’s bond sales. Bond sales must also be approved by the City Council. Although it is legally
separate from the City, MPC is reported as if it is part of the primary government because its sole
purpose is to finance and construct public facilities for the City. MPC does not issue separate audited
financial statements. However, it does file a separate annual report with the Arizona Corporation
Commission (ACC). Copies of the ACC report are available from the City’s Finance Department. It is
the only blended component unit.
C. Form of presentation – Government-wide financial statements
The City reports the following major governmental funds:
The general fund is the City’s primary operating fund. It accounts for all financial resources of the
general City, except those required to be accounted for in another fund.
The transportation fund accounts for the City’s public transit program including activities funded by
Federal grants and distributions received from the Arizona State Lottery. Additionally, on November
6, 2001, Glendale voters authorized a new half-cent sales tax to pay for transportation projects and
programs for all modes of transportation.
The municipal property corporation (MPC) construction fund accounts for construction of municipal
projects such as a public training facility, parking garage, media center, convention center and
infrastructure financed by MPC issued excise tax revenue bonds.
The City reports the following major proprietary funds:
The water and sewer fund accounts for operations, maintenance and construction projects of the Cityowned water and sewer systems.
The landfill fund accounts for operations of the City-owned landfill. It provides services to residential
and commercial users of the City.
Additionally, the City reports the following fund types:
Internal service funds account for risk management, workers’ compensation and employee benefits
provided to other departments.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the Citywide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Cities also have the option of following subsequent private-sector guidance for their business-

38

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
type activities and enterprise funds, subject to this same limitation. The City has elected not to follow
subsequent private-sector guidance.
D. Form of presentation – fund financial statements
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, as
appropriate. Government resources are allocated to, and accounted for, in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
The following funds are presented in the accompanying financial statements.
Governmental funds
Governmental funds are those through which most governmental functions of the City are financed. The
acquisition, use and balances of the City’s expendable financial resources and related liabilities (except
those accounted for in proprietary funds) are accounted for through governmental funds. The
measurement focus is based upon determination of financial position and changes in financial position
rather than upon the determination of net income. The following governmental funds are presented in the
accompanying financial statements.
General fund: The general fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
Special revenue funds: Special revenue funds are used to account for the proceeds of specific revenue
sources (other than special assessments, expendable trusts if any, or major capital projects) that are
legally restricted to expenditures for specified purposes.
Debt service funds: Debt service funds are used to account for the accumulation of financial resources
for the payment of general long-term debt principal, interest, and related costs, except the debt service
accounted for in the enterprise funds. Debt service funds also include the debt payable from special
assessments, highway user gas tax revenues and unrestricted excise tax revenues as well as debt funded
by property taxes levied by the City on property located within the City.
Capital projects funds: Capital projects funds are used to account for financial resources to be used for
the acquisition or construction of major capital facilities (other than those financed by proprietary
funds and trust funds).
Permanent funds: Permanent funds are used to account for financial resources to be used by the
cemetery fund.
Proprietary funds
Proprietary funds are used to account for the City’s ongoing organizations and activities, which are similar
to those found in the private sector. The measurement focus is based upon the determination of net income.
Enterprise funds: Enterprise funds are used to account for operations, including debt service, 1) that
are financed and operated in a manner similar to private business enterprises where the intent of the
governing body is that the costs (including depreciation) of providing goods or services to the general
public on a continuing basis be financed or recovered primarily through user charges, or 2) where the
governing body has decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control, accountability,
or other purposes. The enterprise funds which the City currently maintains, are the water and sewer,
landfill, sanitation, and housing funds.

39

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Internal service funds: Internal service funds are used to account for the financing of self-insurance
provided by one City department to other City departments on a cost-reimbursement basis.
E. Measurement focus and basis of accounting
The citywide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collected within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 30 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, principal and interest on general long-term debt are recorded as fund liabilities when due or
when amounts have been accumulated in the related debt service fund for payments to be made shortly
after fiscal year-end.
Revenues susceptible to accrual include property tax, sales tax, highway users tax, state shared sales tax,
vehicle license tax, and interest earned on investments. Licenses and permits, charges for services, fines
and forfeitures, and miscellaneous revenues are recorded as revenues when received in cash because they
are generally not measurable until actually received.
In applying the susceptible to accrual concept to intergovernmental revenues, the decision to accrue
depends on the terms of the arrangement or agreement. Generally, these resources are reflected as
revenue at the time of receipt or earlier if they meet the available criterion. Certain grant revenues are
recognized based on expenditures recorded. Special assessment levies are reported as revenue when
measurable and available.
F. Statement of cash flows
The City considers short-term investments (including restricted assets) in the State of Arizona Local
Government Investment Pool (LGIP), mutual fund-money market, U.S. Treasury bills and notes with
original maturities of three months or less at acquisition date to be cash equivalents.
G. Inventories and prepaid items
Inventories of the governmental and enterprise funds consist primarily of expendable supplies held for
consumption. These inventories are maintained on a perpetual system verified through cyclical physical
counts and are valued using a weighted average cost. Generally, expenditures are recorded at the time
inventories are used (i.e., the Consumption Method) for both GAAP reporting and budgetary purposes.
However, the City postage inventory is recorded as an expenditure at time of purchase (i.e., the Purchase
Method) for budgetary purposes. At June 30, 2007, the postage portion of the general fund supplies
inventory was $45. Certain expenditures are recorded for financial reporting purposes as prepaid items.
Special reporting treatment is applied to governmental fund inventories to indicate that they do not
represent available expendable financial resources, even though they are a component of current assets.
Such amounts have been offset by a fund balance reserve account.

40

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
H. Restricted assets
Certain proceeds of the City’s bonds, as well as certain resources set aside for their repayment, are
classified as restricted on the balance sheet, or statement of net assets, because they are maintained in
separate bank accounts and their use is limited by applicable debt covenants. When both restricted and
unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then
unrestricted resources, as they are needed.
I.

Capital assets
The City has chosen not to apply the modified approach to any networks or subsystems of infrastructure
assets. No long-term assets or depreciation are shown in the governmental fund financial statements.
Capital assets, including public domain infrastructure (e.g., roads, bridges, sidewalks and other assets that
are immovable and of value only to the City) are defined as assets with an initial, individual cost of more
than $5 and an estimated useful life greater than three years. Capital assets are recorded at cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at the estimated
fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
the assets’ lives are not capitalized. Major improvements are capitalized and depreciated over the
remaining useful lives of the related capital assets.
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. The total interest expense incurred by the enterprise funds
during the current fiscal year was $8,670. In addition, $872 was included as part of the cost of capital
assets under construction in connection with water and sewer projects.
Property, plant, and equipment are depreciated using the straight-line method over the following
estimated useful lives:

Assets
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Automotive equipment
Software
Computer equipment

Useful Life (Years)
30
10-20
10-100
5-8
6-8
3
3-5

Capital assets transferred between funds are transferred at their net book value (cost less accumulated
depreciation) as of the date of the transfer.
J.

Water storage rights
The City has entered into a lease agreement with Salt River Pima-Maricopa Indian Community (SRPMIC) for the rights to 1814 acre-feet of water each year through 2099. These rights, costing $2,693, are
being amortized over 40 years on a straight-line basis starting January 1, 2000. Current year
amortization was $67. The net book value of water rights as of June 30, 2007, is $2,188. In addition, the
City will be responsible for paying for the cost of water delivered each year.

41

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
The City participates in the Plan Six cost sharing agreement to construct the Waddell Dam on the Agua
Fria River and modify the Roosevelt and Stewart Mountain Dams on the Salt River. The parties to this
agreement include the United States government, State of Arizona, Central Arizona Water Conservation
District, Salt River Project, and the cities of Phoenix, Chandler, Glendale, Mesa, Scottsdale, Tempe and
Tucson. The federal government has determined that this agreement does not constitute a joint venture.
As of June 30, 2007, the City has capitalized payment of $4,440 for these water rights. Upon
completion, the City will amortize this asset over 40 years on a straight-line basis.
K. Fund balance/net assets reservations and designations
In the fund financial statements, governmental funds report reservations of fund balance for amounts that
are not available for appropriation by legislative action by the City Council or are legally restricted by
outside parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change. Only restrictions imposed by external sources are shown
as restricted net assets on the government-wide financial statements. Reservations or designations of net
assets imposed by the reporting government, whether by administrative policy or legislative action of the
reporting government, are shown in aggregate on the governmental fund financial statements.
L. Property tax
The City levies taxes on real and personal property located within its boundaries. Property values are
assessed by the Maricopa County Tax Assessor. The tax levy is then approved by the State of Arizona
Property Tax Oversight Commission. The County Treasurer bills and collects property taxes and remits
them to the City monthly. City property tax revenues are recognized when levied to the extent that they
are received within the current period, or soon enough thereafter (within 30 days of year-end), to pay
liabilities of the current period. Remaining collectible taxes are accrued and reflected as deferred
revenue.

Property Tax Calendar
Lien date
Levy (assessment) date (third Monday in August)
Due dates:
First half of assessment
Second half of assessment
Penalties and interest added (collection dates):
First half of assessment
Second half of assessment

January 1, 2006
August 21, 2006
October 2, 2006
March 1, 2007

November 1, 2006
May 1, 2007

The City currently levies less than the maximum allowed by State Statutes for primary property taxes.
The City is permitted to levy an increase of two percent 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 secondary property tax levy is made for the purpose of retiring the principal, interest and servicing
fees on bonded indebtedness. The City may levy the amount deemed necessary to meet its bonded debt
service requirements. Assessed values are established by the Maricopa County Tax Assessor each year
on a uniform basis ratio to full cash value of each property class as required by State Statutes.
The distribution of the City’s levy (tax rate per $100 assessed value) to its funds for the year ended June
30, 2007, is as follows:

42

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Fund
General fund
General obligation debt service fund
Total

$
$

Rate
0.31
1.41
1.72

M. Compensated absences
Vacation time is accumulated up to a maximum of eight workweeks. Compensatory time is earned in
lieu of cash payment for overtime and is accumulated up to a maximum of 80 hours. Both vacation and
compensatory time can either be taken as time off from work, within certain limitations, or may be
payable to employees upon termination or retirement. Sick leave is accumulated without limit and can be
used in the event of an illness in the immediate family. Accumulated sick leave is convertible to a
partial-cash benefit upon termination or retirement after five years of service, or annually after one year
of service, through an irrevocable declaration.
The current portion of the liability for compensated absences recorded in the governmental fund is equal
to: 1) vacation and compensatory time taken and paid during the thirty days following the year ended
June 30, 2007, and 2) sick leave, taken and paid for illness during that period, paid to terminating
employees or paid under the optional annual declaration. Long-term liabilities of governmental funds are
not shown on the fund financial statements. For the government-wide financial statements, as well as the
proprietary fund financial statements, all of the outstanding vacation, compensatory time, and sick leave
are recorded as a liability.
N. Deferred revenue
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned.
Revenues related to time payment contracts are recorded as deferred revenue earned but not available in
the permanent fund.
Revenues related to Court fines are recorded as deferred revenue until adjudicated by the Court.
Revenues related to property tax levies are recorded as deferred revenue until available to fund current
activities.
Special revenue funds’ deferred revenue and receivables consist principally of low interest rate loans
made with grants from the Community Development Block Grant program for rehabilitation of homes
for low to moderate income Glendale residents. Revenue will be recognized in future periods as loans
are repaid or forgiven based on the homeowner’s loan contract. An expenditure was recorded when the
loans were made.
O. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the
straight-line method, which approximates the effective interest method. Bonds payable are reported net
of the applicable bond premium or discount.

43

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
P. Operating revenues and expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds and the City’s internal service funds are charges to customers for sales and services,
or housing operational grants from a federal agency. The water and sewer fund also recognizes as
operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the
system. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
Q. Deferred compensation
Voluntary Deferred Compensation Plan for Employees of the City of Glendale, State of Arizona;
Restated Plan Document (the “Plan document”) was adopted by the Mayor and City Council on
November 10, 1998, and amended on January 8, 2002, to incorporate the Federal Economic Growth and
Tax Relief Reconciliation Act of 2001. In addition, the Mayor and City Council adopted a defined
contribution deferred compensation plan document on April 9, 2002, under the Internal Revenue Code
Section 401(a). Through the Plan document, the City offers its employees a deferred compensation plan
that permits them to defer a portion of their current salary until future years. Any contributions made to
the deferred compensation plan, in compliance with Section 457 and 401(a) of the Internal Revenue
Code, are not available to employees until termination of employment, retirement, death or an unforeseen
emergency. Contributions to the plan are administered by one of two third-party administrators, ICMA
Retirement Corporation (ICMA-RC) and PEBSCO Securities Corporation (Nationwide Retirement
Solutions). In compliance with the provisions of the U.S. Internal Revenue Code Sections 457(g) and
401(a), the plan assets are in custodial or trust accounts for the exclusive benefit of the plans’ participants
and beneficiaries.
The City provides neither administrative services nor investment advice to the plans; therefore, no
fiduciary relationship exists between the City and the deferred compensation pension plan. Therefore,
Plan assets are not included as a fund of the City. To further clarify the legal trust status in Arizona of
plan assets with ICMA-RC and Nationwide Retirement Solutions, a Trust Agreement was executed by
the City management on May 19, 2001.
R. Investments
The City utilizes the following methods and assumptions to account for its investments:
1.
2.
3.

Aside from investments clearly identified as belonging to a specific fund, any unrealized gain/loss
resulting from the valuation is recognized within the general fund as investment revenue.
Investments are recorded at fair value, which is based on quoted market prices as of the valuation
date.
Pooled investment income is allocated to various funds monthly based on the average equity
balances maintained during the month.

44

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Arizona Revised Statutes require the City to deposit certain crime-related forfeitures with the County
Treasurer. The County Treasurer determines the fair value of those pooled investments. The structure of
the pool does not provide for shares and the County has not provided or obtained any legally binding
guarantees to support the value of the participants’ investments.
The City’s investment in LGIP represents shares of the pool’s portfolio. The fair value of each share in
the LGIP is one dollar. These shares are not identified with specific investments and are not subject to
custodial credit risk. Neither the County nor LGIP are registered with the Securities and Exchange
Commission as investment companies. The State Board of Deposits provides oversight, and the Local
Government Investment Pool Advisory Committee provides consultation and advice to the LGIP. There
is no regulatory oversight of the County Treasurer’s operations. The net increase in the fair value of
investments during fiscal year 2006-07 was $215.
II.

Compliance - Excess of expenditures over appropriations
For the year ended June 30, 2007, expenditures exceeded appropriations in the Transportation fund and
Community Development Block Grant fund (the legal level of budgetary control) by $93 and $123,
respectively. These over-expenditures were funded by operating transfers.

III.

Deposits and investments
The City maintains a cash management pool for its cash and cash equivalents in which each fund and/or
account or sub-account of a fund participates on a dollar equivalent basis.
Deposits
At year-end, the carrying amount of the City’s deposits was $56,250 and the bank balances were $59,579.
The difference of $3,329 represents deposits in transit, outstanding checks and other reconciling items. Of
the bank balance, $300 was insured by the Federal Depository Insurance Corporation (FDIC). The remaining
bank balances were covered by $101,406 of collateral held by the City’s agent in the City’s name.
Investments
State Statutes and the City’s investment policy authorize the City to invest in obligations of the U.S.
Treasury, its agencies and instrumentalities, repurchase agreements, commercial paper (A-1/P-1 rated),
interest-earning money market accounts, certificates of deposit, and the State of Arizona Local Government
Investment Pool (LGIP). Investments may not exceed three years to maturity from the date of purchase.
The City’s investment in the LGIP is stated at fair value, which also approximates the value of the investment
upon withdrawal.

45

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
As of June 30, 2007, the City had the following investments:

Investment Type

0-1

Commercial paper
U.S. Agencies
Total investments
State LGIP total
Grand total investments
Cash deposits
Other restricted cash
Total deposits and investments

$

$

Investment Maturities (in years)
1-2
Fair Value

52,668
121,285
173,953
77,493
251,446

$

$

2,998
2,998
2,998

$

52,668
124,283
176,951
77,493
254,444
56,228
20,054
330,726

$

Interest rate risk: As a means of limiting its exposure to interest rate risk the City’s investment policy
requires all securities to mature in no more than three years. The City also purchases securities to be laddered
with staggered maturity dates and limits at least half of the City’s investment portfolio to maturities of 12
months or less.
Credit risk: As of June 30, 2007, the City’s investments were rated by Moody’s Investor Service and
Standard & Poor’s as follows:

Investment Type
U.S. Agencies
Commercial paper

Moody's
Rating

S&P
Rating

% of
Investments

Weighted Average
Maturity (Years)

Aaa
P1

AAA
A-1+

70.24%
29.76%

0.32
0.11

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 (other than U.S. Treasury securities, mutual
funds, and external investment pools) that represent 5% or more of the total investments are as follows:

Issuer
FNMA Total
FHLB Total
FHLMC Total
FFCB Total
Citigroup Funding Total
CC USA Total
ING Funding Total
UBS Finance Total

Investment Type
U.S. Agencies
U.S. Agencies
U.S. Agencies
U.S. Agencies
Commercial Paper
Commercial Paper
Commercial Paper
Commercial Paper

$

Amount
55,370
28,398
25,525
14,990
11,944
10,940
9,933
9,912

Custodial credit risk: To control custodial credit risk, the City’s investment policy requires all securities and
collateral to be held by an independent third party custodian in the City’s name. The custodian provides the
City with monthly market values along with original safekeeping receipts.

46

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

IV.

Capital assets
A summary of capital asset activity, for the government-wide financial statements, for the year ended June
30, 2007, is as follows:
Balances
June 30, 2006
Governmental activities
Non-depreciable assets:
Construction in progress
Land
Artwork
Total non-depreciable assets

$

Depreciable assets:
Buildings
Improvements other than buildings
Infrastructure - streets
Infrastructure - parks
Infrastructure - flood/storm drains
Infrastructure - airport
Machinery and equipment
Computer equipment
Software
Automotive equipment
Total depreciable assets at historical cost
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Infrastructure - streets
Infrastructure - parks
Infrastructure - flood/storm drains
Infrastructure - airport
Machinery and equipment
Computer equipment
Software
Automotive equipment
Total accumulated depreciation
Total depreciable assets, net
Governmental activities capital assets, net

$

98,504
63,372
1,189
163,065

Additions

$

166,095
6,867
9
172,971

Transfers

$

(12,775)
250
(12,525)

183,649
125,523
498,237
63,121
30,296
13,256
29,586
1,578
688
32,025
977,959

767
1,430
7,919
299
1,939
909
47
4,820
18,130

(38,079)
(54,122)
(126,702)
(11,434)
(3,492)
(5,100)
(12,523)
(1,157)
(447)
(18,068)
(271,124)

(5,269)
(6,336)
(12,866)
(2,445)
(409)
(437)
(3,487)
(302)
(97)
(3,382)
(35,030)

-

706,835

(16,900)

12,525

869,900

47

$

156,071

$

4,076
7,277
787
260
125
12,525

$

Balances
June 30, 2007

Disposals

-

(34)
(34)

$

(5)
(2,117)
(2,122)

184,416
131,029
513,433
63,908
30,855
13,381
31,520
2,487
735
34,728
1,006,492

(43,348)
(60,458)
(139,568)
(13,879)
(3,901)
(5,537)
(16,005)
(1,459)
(544)
(19,462)
(304,161)

5
1,988
1,993
(129)
$

(163)

251,824
70,205
1,448
323,477

702,331
$

1,025,808

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Balances
June 30, 2006
Business-type activities:
Non-depreciable assets:
Construction in progress - water and sewer
Construction in progress - landfill
Construction in progress - housing authority
Land
Total non-depreciable assets

$

Depreciable assets:
Buildings
Improvements other than buildings
Water lines
Sewer lines
Water treatment plant
Sewer treatment plant
Meters and services
Fire hydrants
Machinery and equipment
Computer equipment
Automotive equipment
Total depreciable assets at historical cost
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Water lines
Sewer lines
Water treatment plant
Sewer treatment plant
Meters and services
Fire hydrants
Machinery and equipment
Computer equipment
Automotive equipment
Total accumulated depreciation
Total depreciable assets, net
Business-type activities capital assets, net

$

47,599
373
11,609
59,581

Additions

$

63,487
26
215
63,728

Balances
June 30, 2007

Disposals

$

(22,529)
(51)
(22,580)

$

88,557
26
537
11,609
100,729

14,034
24,297
93,932
115,736
105,776
134,618
27,609
5,187
3,509
1,213
16,124
542,035

51
2,743
6,120
1,880
16,096
75
578
14
1,848
29,405

(145)
(842)
(987)

14,085
27,040
100,052
117,616
121,872
134,693
27,609
5,187
3,942
1,227
17,130
570,453

(5,144)
(4,524)
(24,634)
(35,207)
(40,150)
(11,087)
(7,667)
(1,607)
(3,051)
(996)
(10,515)
(144,582)

(456)
(1,270)
(1,805)
(2,535)
(3,350)
(3,863)
(744)
(102)
(236)
(17)
(1,679)
(16,057)

144
838
982

(5,600)
(5,794)
(26,439)
(37,742)
(43,500)
(14,950)
(8,411)
(1,709)
(3,143)
(1,013)
(11,356)
(159,657)

397,453

13,348

457,034

48

$

77,076

(5)
$

(22,585)

410,796
$

511,525

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Depreciation was charged to functions/programs as follows:

Governmental activities:
General
Public safety
Public works
Street maintenance
Community services
Community environment
Total depreciation expense

$

$

Business-type activities:
Water and sewer
Landfill
Sanitation
Housing
Total depreciation expense
V.

$

$

11,378
3,812
2,116
11,923
5,765
36
35,030

13,606
1,132
962
357
16,057

Construction and other significant commitments

The City has active construction projects as of June 30, 2007. The projects include street construction, park
facilities, field operation complex, and the construction of additional water and sewer facilities. At year-end
the government’s commitments with contractors are as follows:

Project

Spent-to-Date

Construction
Commitment

General government
Community services
Public safety
Public works
Street maintenance
Water and sewer facilities
Landfill
Housing
Total primary government

$

$

$

79,788
46,023
37,968
66,002
22,043
88,557
26
537
340,944

$

686
1,885
2,755
13,203
11,877
19,059
49,465

The City, under the memorandum of agreement with the Arizona Sports and Tourism Authority (AZSTA)
and B & B Holdings (DBA Arizona Cardinals), irrevocably assigns, transfers and pledges unrestricted excise
taxes collected at the Multipurpose Facility site (Stadium) to AZSTA. In consideration for the pledge of
unrestricted excise tax revenues, the AZSTA issued bonds to improve the Stadium infrastructure. The City’s
obligation is to make monthly payments to the AZSTA for sales tax payments collected from the site only.
The AZSTA bonds do not constitute a legal debt of the City.
VI.

Self-insurance funds

The City is exposed to various risks of loss. Certain of these risks are accounted for within the internal
service fund type.

49

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

A. Risk management

On January 1, 1987, the City established a risk management fund for torts; loss and destruction of assets;
errors and omissions; and natural disaster. The City’s risk management fund purchases commercial
insurance for liability, property, aviation, errors and omissions, boiler and machinery, and vehicle
property damage. The risk management fund was fully self-insured through June 30, 1998, for tort
liability loss. Effective July 1, 1998, the City purchased excess public entity liability insurance with
$1,000 of self-insurance retention for claims incurred on or after July 1, 1998.
Funds receiving insurance coverage pay monthly premiums to the risk management fund based upon a
budget model taking into consideration prior loss experience, staffing and operating budget.
Premium payments to insurance carriers are made directly from the risk management fund. There have
been no settlements paid in excess of insurance in any of the past three years nor has insurance coverage
been significantly reduced in recent years.
B. Workers’ compensation

On July 1, 1994, the City established a workers’ compensation fund for work-related injuries to
employees. The workers’ compensation fund provides coverage up to a maximum of $500 for each
workers’ compensation claim and purchases commercial insurance for claims in excess of $500.
Funds receiving insurance coverage pay monthly premiums to the workers’ compensation fund based
upon a budget model taking into consideration prior loss experience, staffing level, and the National
Council on Compensation insurance workers’ compensation manual rates.
Premium payments to insurance carriers are made directly from the workers’ compensation fund. There
have been no settlements paid in excess of insurance in any of the past three years.
C. Employee benefits

On July 1, 2000, the City established an employee benefits fund to meet future cost increases for healthrelated insurance.
Premiums are collected through contributions from employee paychecks and department budgets.
Retirees and COBRA participants contribute 100% of premiums for their insurance benefit coverage.
Premiums for the medical, vision, dental, and life insurance plans are determined prior to each renewal
period by estimating the costs of claims and administration of the plan based on a variety of factors
including: the demographics of the group, previous claims history, plan design changes and any new
mandated benefits. These insurance benefits are provided through minimum premium and self-insured
insurance plans. The City is responsible for the first $150 in medical claims per individual plan year.
Any claims exceeding $150 are paid by the reinsurance plan.
Premiums are set prior to the beginning of each plan year equal to 105% of the expected claims liability.
Premium payments to insurance carriers are made directly from the fund. There have been no
settlements paid in excess of insurance in any of the past three years nor has insurance coverage been
significantly reduced in recent years.
D. Estimated liability

Based on information provided by the actuary, liabilities are reported when it is probable that a loss has
occurred and the amount of the loss can be reasonably estimated.
50

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Liabilities include an amount for claims that have been incurred but not reported, the effects of specific,
incremental claim adjustment expenses, and other allocated claim adjustment expenses. The City’s
workers’ compensation self-insurance program liability includes recoveries related to subrogation.
Salvage and subrogation are immaterial to both risk management and employee benefits self-insurance
programs and are not incorporated into the liability. The self-insurance programs do not include a
provision for unallocated claim adjustment expenses except for the workers’ compensation fund, which
provides for unallocated claims adjustment expenses and Industrial Commission taxes and fees.
The City claim liabilities are calculated considering the effects of inflation, recent claim settlement trends
including frequency and amount of payouts and other economic and societal factors.
The City reports the estimated liability in net present value dollars using a future investment yield
assumption of 5%. These liabilities are reported in the internal service funds at their present value of
$7,899 as of June 30, 2007. Changes in the balances of claims liabilities during the past two years are as
follows:
Risk Management
2007
2006
Unpaid claims, beginning of fiscal year
Current year claims and changes in
estimate
Claims payments

$

Balance at fiscal year end

$

3,837

$

1,153
(1,243)

Workers' Compensation
2007
2006

2,960

$

2,833
(1,956)

3,747

$

1,962

$

1,126
(990)

3,837

$

2,098

2,247

Employee Benefits
2007
2006
$

388
(673)
$

1,962

1,694

$

18,300
(17,939)
$

2,055

2,475
15,603
(16,384)

$

1,694

VII. Leases
A. Capital leases

The City’s capital lease activity consists principally of leasing various types of heavy equipment for
landfill, sanitation, and fire. Additionally, the City has entered into capital leases involving real property
for various funds. The City’s lease obligations meet the criteria of a capital lease as defined by Statement
of Financial Accounting Standards No. 13 “Accounting for Leases,” and have been recorded on the
government-wide statements. The future minimum lease obligation and net present value of lease
payments at June 30, 2007, are as follows:

Governmental
Activities

Year Ending June 30
2008
2009
2010
2011
2012
2013-2017
Total minimum lease payments
Less: Amount representing interest
Present value of net minimum lease payments

51

$

$

2,489
2,398
2,264
2,898
5,253
323
15,625
(3,133)
12,492

Business-type
Activities
$

$

738
663
524
459
155
2,539
(190)
2,349

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

The assets acquired through capital leases are as follows:

Class of Property
Equipment
Automotive equipment
Building
Other
Less: Accumulated depreciation
Total

Governmental
Activities

Business-type
Activities

$

$

$

472
2,975
197
5,492
9,136
(4,300)
4,836

$

250
7,490
150
2,389
10,279
(4,755)
5,524

B. Operating lease expenditures

The City leases office space and vehicles under various cancelable operating lease agreements expiring at
various dates. Certain leases contain provisions for possible future increased rentals based upon changes
in the Consumer Price Index. Combined annual rental payments in fiscal year 2006-07 were $512.
C. Operating lease revenue

The City also leases various City-owned properties and buildings under cancelable and non-cancelable
long-term lease agreements through fiscal year 2008 and beyond. The carrying value of leased assets is
$187,403 (cost of $228,264 less accumulated depreciation of $40,861). The leased properties and
buildings are included as capital assets in the government-wide financial statements. Certain leases
contain provisions for future increased revenues based upon changes in the Consumer Price Index.
Scheduled minimum revenues for non-cancelable leases for succeeding fiscal years ending June 30 are as
follows:
Total
Revenues
$
1,236
963
917
874
807
19,613
$
24,410

Fiscal Year
2008
2009
2010
2011
2012
2013 and beyond
Total
VIII. Short-term debt

The City did not issue short-term debt for the year ended June 30, 2007.
IX.

Long-term debt
A. General obligation bonds

The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds have been issued for both governmental and business-type

52

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City
and are repaid through the City’s levying of property taxes. Retirement of the general obligation bonds
in the business-type activities are intended to be paid back by the revenues of the business-type activities.
B. Revenue bonds

Highway User Revenue Bonds are used to construct street and highway projects. The debt service is
repaid through the highway user revenue fund, a special revenue fund, from the City’s share of the
gasoline taxes that are collected by the State of Arizona and distributed to cities and towns based on a
formula of population and gasoline sales within the county.
Water and Sewer Revenue Bonds are issued, pursuant to voter authorization, for the construction,
acquisition, and equipping of water and sewer facilities and related systems and infrastructure. Water
and Sewer Revenue Obligations are issued pursuant to a Trust Agreement entered into between a Trustee
and the City to acquire and construct various improvements to water and sewer facilities and extensions
of the system. The bonds and obligations are backed by the revenues of the water and sewer systems.
C. Municipal property corporation (MPC) bonds

In 1982, 2002, 2003 and 2006 the MPC, a non-profit corporation, issued bonds to finance the
construction of a new municipal office complex, hockey arena, public safety training center, parking
garage, media center, convention center and city infrastructure, respectively. On October 19, 1982, July
31, 2002, May 1, 2003, and June 1, 2006, the City entered into a lease purchase agreement with MPC,
whereby, the City is purchasing the constructed municipal office complex, hockey arena, public safety
training center, parking garage, media center, convention center and city infrastructure, respectively,
from MPC. In addition, on April 1, 2004, the City entered into a lease agreement with the MPC to issue
bonds to finance an escrow account to refund certain outstanding City improvement district bonds. An
amount equal to the MPC debt service and related miscellaneous fees, is payable to the MPC in monthly
installments by the City.
Under the provisions of the purchase agreement, the City has pledged for the payment of the purchase
price: 1) all net revenues derived by it from the municipal office complex and arena, and 2) all excise,
transaction, privilege and franchise taxes which it currently collects, which it may collect or which are
allocated to it by any other governmental unit or municipal corporation, except its share of such amounts
which by state law, rule or regulation must be expended for other purposes. However, under no
circumstances shall such pledge constitute a general obligation of the City or will the purchase price be
payable from the proceeds of ad valorem taxes.
D. Special assessment bonds

The City has a trust relationship for special assessment districts whereby it collects the assessments
levied against owners of property within established districts and disburses the amounts collected to
retire the bonds issued to finance related improvements. The City is required to annually appropriate
from the tax revenues of the general fund monies to be applied in payment of the outstanding bonds to
the extent that the funds derived from the collection of the unpaid special assessments are insufficient for
the payment of the principal and interest falling due in any year. On January 1, 2007, final payment was
made to retire the outstanding special assessment bond and interest due.

53

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

E. Changes in long-term liabilities

The following is a summary of changes in long-term liabilities reported in the governmental activities
financial statements for the year ended June 30, 2007:

June 30,
2006

General obligation (G.O.) bonds
Special assessment debt
with governmental commitment
Revenue bonds:
Street and highway
Municipal property corporation
Total bonds payable

$

Notes payable:
Notes payable
Total debt service
Other long-term obligations:
Capital lease obligations
Compensated absences
Claims and judgments
Unamortized premium on debt
issuance
Developer payable obligations
Arbitrage rebate payable
Total other long-term obligations
Total

$

175,155

Additions

$

Reductions

61,000

$

(11,921)

Amounts
Due Within
One Year

June 30,
2007

$

224,234

$

11,711

39

-

(39)

-

-

35,940
223,988
435,122

72,327
133,327

(1,875)
(2,785)
(16,620)

34,065
293,530
551,829

3,170
2,715
17,596

15,689
15,689

-

(9,410)
(9,410)

6,279
6,279

821
821

12,875
12,753
7,493

668
2,265
20,644

(1,051)
(1,625)
(20,238)

12,492
13,393
7,899

1,654
10,294
5,026

5,542
38,663

1,198
1,570
447
26,792

(377)
(23,291)

6,363
1,570
447
42,164

456
17,430

489,474

$

160,119

$

(49,321) $

600,272

$

35,847

General fund typically has been used to liquidate compensated absences in prior years, since most
employees engaged in governmental activities are paid from that fund. Paychecks include payment for
leave taken during the current pay period.

54

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

The following is a summary of changes in long-term liabilities reported in the business-type activities
financial statements for the year ended June 30, 2007:

June 30,
2006
Water and sewer G.O. bonds
Landfill G.O. bonds
Water and sewer revenue/obligation bonds
Total bonds payable

$

Notes payable
Total notes payable
Capital lease obligations
Estimated closure and post-closure
costs
Unamortized premium on debt
issuance
Compensated absences
Housing noncurrent liabilities
Arbitrage rebate payable
Total other long-term obligations
Total

$

12,375
700
190,020
203,095

Additions
$

June 30,
2007

Reductions

44,500
44,500

$

(780)
(180)
(5,390)
(6,350)

$

11,595
520
229,130
241,245

Amounts
Due Within
One Year
$

790
189
5,680
6,659

12,285
12,285

-

(1,423)
(1,423)

10,862
10,862

623
623

2,613

701

(965)

2,349

661

10,388

589

10,977

-

6,267
1,912
21
140
21,341

1,184
274
9
344
3,101

7,110
2,098
30
484
23,048

400
1,512
2,573

236,721

$

47,601

(341)
(88)
(1,394)
$

(9,167)

$

275,155

$

9,855

F. Advance refunded bonds

The City issued refunding bonds to defease certain outstanding bonds, thus achieving debt service
savings. The City has placed the proceeds from the refunding issue in an irrevocable escrow account
with a trust agent, which will provide amounts sufficient for future payment of principal and interest of
the issue refunded.
Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City’s
financial statements. Although defeased, the refunded debt from this issue will not be actually retired
until the call dates have come due or until maturity if they are not callable issues. The City issued
advance refunding bonds for the fiscal year ending June 30, 2007.

Issue Refunded
General Obligation Bonds
Series 2000

Date Refunded
April 11, 2006

55

Remaining Balance
$9,255

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
G. Bonds payable

Bonds payable at June 30, 2007, are comprised of the following:
Classified in governmental activities on the government-wide financial statements:
General Obligation Bonds:

Purpose

Interest
Rate

Issued
Fiscal Year
Ending
June 30

Year
Series
Matures

G.O. bonds payable from secondary assessed property taxes
Refunding
5.05-5.55
1993
Various
4.15-4.60
1998
Various
5.00-5.40
2000
Various
2.50-5.00
2002
Various
1.50-5.00
2003
Various
3.00-5.00
2004
Various
3.50-4.00
2005
Refunding
5.00-5.00
2006
Various
4.00-5.00
2006
Various
4.00-5.00
2007
Total

2007
2008
2015
2022
2022
2019
2015
2015
2021
2022

Revenue bonds payable from highway user revenue funds
Streets
5.00-5.37
2000
Streets
2.50-4.00
2004
Streets
4.00-5.00
2006
Total

2010
2014
2016

Amount of
Original
Issue

Bonds
Outstanding
June 30,
2007

$

$

36,125
12,000
20,215
40,235
52,525
36,645
11,960
9,065
29,365
61,000

8,750
14,655
15,745

6,155
12,165
15,745
34,065

Municipal property corporation payable from general fund lease payments
Refunding
4.25-4.90
2000
2009
12,615
MPC excise tax
5.00-5.38
2003
2033
5,055
MPC excise tax 2003A
2.50-5.00
2003
2024
49,940
MPC excise tax 2003B
1.46-5.58
2003
2033
105,260
MPC refunding
4.70-4.70
2004
2033
7,250
MPC excise tax 2004A
2.00-5.00
2004
2014
10,880
MPC excise tax 2006A
4.00-5.00
2006
2026
33,250
MPC excise tax 2006B
8.00-8.00
2006
2021
87,000
Total
Total bonds payable recorded in governmental activities
Less current portion
Long-term portion of bonds payable recorded in governmental activities

56

585
2,865
5,269
30,555
42,215
32,360
10,955
9,065
29,365
61,000
224,234

4,935
5,055
49,940
96,940
7,250
9,160
33,250
87,000
293,530

$

551,829
(17,596)
534,233

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Classified in business-type activities on the government-wide financial statements:

Purpose

Interest
Rate

Issued
Fiscal Year
Ending
June 30

Year
Series
Matures

G.O. bonds payable from landfill fund
Landfill
5.00-5.40
2000
Total
G.O. bonds payable from water and sewer fund
Water and sewer
1.50-5.00
2003
Total

2015

Amount of
Original
Issue

Bonds
Outstanding
June 30,
2007

$

$

1,460

520
520

2022

13,875

11,595
11,595

Revenue bonds/obligations payable from water and sewer fund
Various
4.75-5.75
2000
2010
Various
4.00-5.00
2004
2023
Various
4.00-5.25
2006
2026
Various
4.25-5.00
2007
2028
Total

53,000
80,000
80,000
44,500

24,630
80,000
80,000
44,500
229,130

Total bonds payable recorded in business-type activities
Less current portion
Long-term portion of bonds payable recorded in business-type activities

$

241,245
(6,659)
234,586

The Arizona Constitution provides that the general obligation bonded indebtedness for a city for general
municipal purposes may not exceed 6% of the secondary assessed valuation of the taxable property in
that city. In addition to the 6% limitation for general municipal purpose bonds, cities may issue general
obligation bonds up to 20% of the secondary assessed valuation for supplying such city with water,
sewer, artificial light, public safety, law enforcement, fire and emergency services, streets and
transportation facilities, and for the acquisition and development of land for open space preserves, parks,
playgrounds and recreational facilities.
The City’s unused bonded debt borrowing capacity as of June 30, 2007, is as follows:
6%
Capacity to incur bonded debt
Less: Bonded debt applicable to limit
Unused bonded debt capacity

$
$

82,259
(62,033)
20,226

20%
$
$

274,198
(149,716)
124,482

The various bond indentures contain significant limitations and restrictions on annual debt service
requirements, maintenance and flow of monies through various restricted accounts, and minimum
revenue and bond coverage. The City is in compliance with all such significant limitations and
restrictions.

57

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

H. Bonds authorized, issued and unissued

Bonds authorized but not fully issued as of July 1, 2007, are shown below:

Authorized
Amount

G.O. Bonds
Voter authorized October 20, 1981
Operations center

$

Voter authorized March 10, 1987
Library

6,750

Issued through
June 30, 2007

$

550

Authorized
but
Unissued

$

6,200

9,698

8,000

1,698

Cultural facility(1)
Economic development
Flood control

18,215
50,500
38,860

4,494
16,088
35,307

13,721
34,412
3,553

Governmental facilities(1)

40,910

12,385

28,525

17,000
15,398
53,700
57,188
64,801

1,460
3,175
49,741
50,666

15,540
15,398
50,525
7,447
14,135

6,935

185

6,750

$

20,554
16,155
102,638
79,065
598,367

$

11,827
193,878

$

20,554
16,155
102,638
67,238
404,489

$

56,000

$

49,657

$

6,343

Voter authorized November 2, 1999

(1)

Landfill development
Library
Open spaces
Parks and recreation
Public safety
Transit(1)

Voter authorized May 15, 2007
Flood control
Parks and recreation
Public safety
Streets and parking
Total G.O. bonds

Revenue bonds
Voter authorized March 10, 1987
Water and sewer
Voter authorized November 2, 1999
Water and sewer(1)
Total revenue bonds
Total bonds

10,000
66,000
$

664,367

49,657
$

243,535

10,000
16,343
$

420,832

(1) Certain General Obligation Bonds or Revenue Bonds can be issued as General Obligation Bonds,
Revenue Bonds or a combination thereof.

58

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

I.

Other debt (notes, long-term)

Classified in the governmental activities in the government-wide financial statements:
Downtown Glendale Building Purchase - The $1,779 note dated
June 5, 2000, is an assumed loan payable in 98 installments at
an interest rate of 9.00% with the final payment due on or before
September 1, 2008.

$

381

Northern Crossing Land Purchase - The $14,500 note dated
November 15, 2002, is payable in nine annual installments at a variable
interest rate with the final payment due on or before September 15, 2012.
The interest rate assumption stays level after the 2008 fiscal year.

4,278

Larry Miller Land & Building Purchase - The $2,700 note dated
December 30, 2004, is payable in five annual installments at an interest rate
of 1.68% with the final payment due on or before December 30, 2009.

1,620

Total notes payable recorded in governmental activities
Less current portion
Long-term portion of notes payable recorded in governmental activities

6,279
(821)
5,458

$

Classified in the business-type activities in the government-wide financial statements:
Cholla Water Treatment Plant Solids Handling Facilities - The maximum
available under the loan is $15,400 of which $12,598 was drawn down and
recorded as a liability as of June 30, 2004. The loan is scheduled to be paid
in annual installments over 20 years with an interest rate of 4.40%. Principal
and interest are payable from the water and sewer fund.
Total notes payable recorded in business-type activities
Less current portion
Long-term portion of notes payable recorded in business-type activities

59

$

10,862

$

10,862
(623)
10,239

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

J.

Debt service requirements
Fiscal
Year
Ending
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Total

Highway
User
Revenue
Bonds
$

Less
interest
Principal

4,705
4,696
4,699
4,690
4,696
4,699
4,686
1,953
1,971
36,795

Landfill
G.O.
Bonds

Municipal
Property
Corporation
Bonds

$

$

5,900
$

30,895

$

216
139
355

24,430
25,502
23,991
24,528
24,642
24,672
24,734
22,833
22,893
25,266
25,318
25,371
25,423
25,486
25,530
15,255
15,904
15,958
16,014
13,420
13,478
12,674
13,612
13,671
13,732
6,532
8,563
529,432

Various Purposes
G.O.
Bonds
$

24,012
22,543
22,673
22,630
22,631
22,642
22,646
22,596
19,039
18,951
18,901
14,475
11,155
11,197
8,456
284,547

24

238,617

72,024

331

$ 290,815

$ 212,523

Water and Sewer

Notes
Payable
$

$

Revenue
Bonds/
Obligations

G.O.
Bonds

Notes
Payable

1,203
1,023
913
1,374
1,817
1,679
8,009

$ 1,263
1,263
1,256
1,251
1,251
1,259
1,260
1,249
1,236
1,226
1,214
13,728

$ 1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,128
1,128
1,128
16,932

1,730

2,923

6,693

132,113

460,024

6,279

$ 10,805

$ 10,239

$ 223,450

$ 785,337

$

17,491
17,467
17,468
17,471
17,471
17,468
17,467
17,467
17,469
17,466
17,470
17,467
17,469
17,468
17,467
18,599
18,599
18,595
18,597
11,431
7,696
355,563

Total
$

74,449
73,762
72,129
73,073
73,637
73,548
71,922
67,227
63,737
64,038
64,032
58,442
55,175
55,279
52,581
33,854
34,503
34,553
34,611
24,851
21,174
12,674
13,612
13,671
13,732
6,532
8,563
1,245,361

The following table discloses the debt service requirements as of June 30, 2007, segregating principal
and interest, for the next five years and in five-year increments thereafter. Note: the principal column
includes the future draws.

Fiscal Year
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2034
Total

Principal
33,593
35,201
35,211
37,878
40,231
203,730
199,538
123,905
61,825
14,225
$
785,337

Interest
40,856
38,561
36,918
35,195
33,406
136,742
85,971
38,467
13,038
870
$
460,024

$

$

60

Total
74,449
73,762
72,129
73,073
73,637
340,472
285,509
162,372
74,863
15,095
$ 1,245,361

$

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

K. New bonds

On June 16, 2006, the City entered into a bridge financing agreement whereby the maximum amount of
Municipal Property Corporation (MPC) Subordinate Excise Tax Revenue Bonds Series 2006B to be
issued by February 1, 2007, is $87,000. As of June 30, 2006, $14,673 bonds had been issued to finance
the construction of a parking garage, media center, convention center, and infrastructure improvements.
As of June 30, 2007, an additional $72,327 has been issued. The bonds mature on various dates starting
2007 through 2021 with a maximum interest rate not to exceed 8.00%. The principal and interest on the
bonds are not a general obligation of the Corporation and City, but a limited obligation of the
Corporation and City payable solely from and are secured by a pledge of the City’s unrestricted excise
taxes.
On June 14, 2007, the City issued $44,500 in subordinate lien water and sewer revenue obligation bonds
to fund the construction of various water and sewer improvements in the City. The bonds mature on
various dates starting 2008 through 2027 with various interest rates of 4.25% to 5.00%. The bonds are
not general obligations of the City, but are limited obligations of the City and are payable as to both
principal and interest solely from and secured by a subordinate pledge of net revenues of the system.
On June 26, 2007, the City issued $61,000 in general obligation bonds to finance the costs of acquisition,
improvement and equipment of various projects relating to government facility public safety, flood
control, and streets and parking. The bonds mature on various dates starting 2008 through 2022 with
various interest rates of 4.00% to 5.00%. The bonds are direct and general obligations of the City and are
payable as to both principal and interest from ad valorem taxes against all taxable property within the
City subject to taxation.
X.

Landfill obligations

The City operates a municipal sanitary landfill under an Aquifer Protection Permit and Solid Waste Facility
Plan approval issued by the Arizona Department of Environmental Quality requiring future closure work and
post-closure monitoring. The permit meets federal and state regulations. These laws and regulations require
the City to place a final cover on its landfill site when it stops accepting waste and to perform certain
maintenance and monitoring functions at the site for 30 years after closure. Although closure and postclosure care costs will not be paid until near or after the date that the landfill stops accepting waste, the City
reports a portion of these closure and post-closure costs as an operating expense in each period based on
landfill capacity used.
The landfill closure and post-closure care liability at June 30, 2007, calculated below, represents the
cumulative amount reported to date based on the use of estimated capacity of the landfill.

North Cell
Capacity (cubic yards)
Capacity used to date
Percentage of capacity used

South Cell

32,100
0%

22,594
17,358
77%

Total closure and post-closure
costs in present dollars:
as of June 30, 2007
as of June 30, 2006

$
$

15,258
14,928

$
$

14,288
13,979

Closure and post-closure care costs:
Amount remaining to be recognized
as of June 30, 2007

$

15,258

$

3,311

Liability recognized as of June 30, 2007

$

-

$

10,977

61

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year
2006-07. The estimated costs are subject to changes due to inflation, deflation, new technology, and
applicable laws and regulations. Assets are not restricted to fund the obligations. The estimated remaining
life of the landfill is approximately 38 years.
According to state and federal laws and regulations, the City must comply with the local government
financial test requirements that assure the City can meet the cost of landfill closure, post-closure, and
corrective action when needed. The City is in compliance with these requirements.
XI.

Interfund transactions
A. Interfund receivables

Interfund balances at June 30, 2007, consisted of the following:

Due To
Major governmental funds:
General

$

Non-major governmental funds:
Community development block grants fund
Other special revenue fund
Non-major enterprise funds:
Housing fund
Total

$

Due From

3,229

$

-

-

234
2,976

3,229

19
3,229

$

The interfund balances at June 30, 2007, are short-term loans to cover temporary cash deficits in various
funds. This occasionally occurs prior to bond sales or grant reimbursements. All interfund balances
outstanding at June 30, 2007, are expected to be repaid within one year.

The remainder of this page left blank intentionally.

62

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

B. Interfund transfers

Interfund transfers for the year ended June 30, 2007, consisted of the following:
Transfers to general fund from:
Transportation fund
Non-major governmental funds
Development impact fees fund
Other special revenue fund
Municipal Property Corporation construction fund
Streets construction fund
Fire and police construction fund
Parks bond construction fund
Other construction fund
Landfill enterprise fund
Total transfers to general fund
Transfers to transportation fund from:
General fund
Streets construction fund

$

268
87
18
132
77
69
11
174
141
977

900
4,276
5,176

Transfers to non-major governmental funds from:
General fund
Transportation fund
Total transfers to non-major governmental fund
Transfers to non-major debt service funds from:
General fund
Non-major governmental funds
Highway users gas tax fund
Special assessment debt service fund
Other special revenue fund
Other construction fund
Total transfers to non-major debt service fund
Transfers to water and sewer enterprise fund from:
Landfill enterprise fund
Transfers to non-major enterprise funds from:
General fund
Grand total all transfers

1,965
750
2,715

5,240
4,770
112
5,827
128
16,077

14

505
$ 25,464

Transfers are used to: 1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, 2) move receipts restricted to debt service from
the funds collecting the receipts to the debt service fund as debt service payments become due, and 3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.

63

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

The interfund transfers are all classified as transfers and are included in the results of operations of both
governmental and proprietary funds. There were no significant transfers during fiscal year 2007 that
were either non-routine in nature or inconsistent with the activities of the fund making the transfer.
XII. Encumbrances

The Arizona Revised Statutes allow cities to encumber unused appropriations for up to sixty days after the
end of the fiscal year. However, effective July 1, 1987, the City adopted a policy of not recognizing
encumbrances at year-end. All appropriations lapse on the last day of the fiscal year. Any outstanding
commitments that the City intends to honor are rebudgeted in the new fiscal year. At June 30, 2007, the City
intended to honor $57,899 of outstanding encumbrances in the new year.
XIII. Equity in joint venture

The City, along with the cities of Phoenix, Mesa, Scottsdale and Tempe participates in the Sub-Regional
Operating Group (SROG), a joint venture. SROG constructs, operates and maintains jointly used facilities
including the 91st Avenue Waste Water Treatment Plant (Plant) and certain sewage transportation facilities.
The City of Phoenix acts as lead agency, and as such, is responsible for the planning, budgeting, construction,
operation and maintenance of the Plant. In addition, the City of Phoenix provides all management personnel
and financing arrangements and accepts federal grants on behalf of the participants.
Each participant pays for its costs of operation and maintenance based on relative sewage flows and strengths
and for purchased capacity in plant and related transportation facilities based on ownership. The City
accounts for its approximate 8.59% investment using the equity method in the water and sewer fund. For the
year ended June 30, 2007, the City recognized a loss of $33. The City has financed its share of construction
costs through the issuance of revenue bonds, development fees and grants. The bonds are collateralized by a
pledge of water revenues and are reflected in the financial statements of the water and sewer fund. The joint
venture itself has not issued any debt.
Summary financial information on the joint venture as of and for the fiscal year ended June 30, 2007,
(unaudited) is as follows:
Assets
Current assets
Capital assets, net of accumulated depreciation
Total assets

$

Liabilities
Net assets

$

Total revenues
Total expenses
Increase in net assets

$
$

64

76,893
694,205
771,098
68,444
702,654
161,445
(62,933)
98,512

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Calculation of the City’s equity:
City’s share of SROG equity
(Total equity of $702,654
plus unrealized loss of $2,591 less assets not
owned by the City of $141,477 multiplied by 8.59%)
Net capitalized interest on the City’s records
City contributions not yet received by SROG
Total City equity
Change in the City’s equity:
Capital contributed to the joint venture
Net loss on joint venture
Net increase in equity

$

48,428

$

680
5,674
54,782

$
$

9,523
(33)
9,490

Copies of separate financial statements of the joint venture can be obtained from Arizona Municipal Water
Users Association, 4041 North Central Avenue, Phoenix, Arizona 85012.
XIV. Jointly governed organizations
The Regional Public Transit Authority (RPTA) is a voluntary association of local governments, including
Glendale, Phoenix, Mesa, Tempe, Scottsdale, and Maricopa County. Its purpose is to ensure that a viable
public transportation system is provided as an alternative for regional mobility and to ease the traffic
congestion and air pollution caused by over-reliance on the single occupant vehicle. The Board of Directors
consists of the mayors of those cities and a member of the County Board of Supervisors.
Arizona Municipal Water Users Association (AMWUA) is a non-profit corporation established and funded
by cities in Maricopa County for the development of an urban water policy and to represent the cities'
interests before the Arizona legislature. In addition, AMWUA contracts with the cities jointly using the 91st
Avenue Waste Water Treatment Plant to perform certain accounting, administrative and support services.
XV. Fund balance/net assets reservation, designation, and restriction
The following is a list of reserves, designations, and restrictions with an explanation for each by fund type.
General Fund Type
Reserved for inventory
Amount available only for expenditure (i.e., consumption of existing supplies inventories
that have already been purchased).
Reserved for capital leases
The City periodically enters into capital leases. In governmental funds, revenue is
recognized when the proceeds are received. However, the unspent portion of the
proceeds is restricted to the capital items identified in the lease agreement.
Reserved for cable equipment (PEG)
Amount to be used only for expenditure by City’s cable television station as required by
agreement with cable system providers.
Reserved for “From the Heart” program
Certain donations made to the City are required by ordinance to benefit Glendale
residents through providing grants to non-profit social service organizations.

65

$

212

2,633

6

56

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Reserved for court security
Security surcharges collected by the City Court are required by ordinance to be spent
solely on court security.
Reserved for court computer upgrade
Surcharge that provides for monies to improve, maintain, and enhance the ability to
collect and manage monies received by courts and to improve court automation and
improve case processing (administration of justice).

$

88

54

Reserved for court time payment
Court time payment fees are used by the City Court to improve, maintain, and enhance
the ability to collect and manage monies assessed or received by the court, to improve
court automation and to improve case processing or the administration of justice.

127

Reserved for garden for visually impaired
A donation was made to the City for the purpose of establishing a tactile garden for the
visually impaired.

197

Reserved for acquisition of artwork
Acquisition of artwork by the City’s Arts Commission is provided through a surcharge on
eligible capital projects as directed by the City Council.

3,162

Reserved for vehicle/equipment replacement
For future scheduled replacement of existing equipment and vehicles.

3,965

Total reserved for general fund type

$ 10,500

Designated for computer replacement
For future schedule replacement of existing personal computers.

$ 2,963

Designated for library activities
A minor portion of future operating expenditures of the library has been authorized
through the City budget to be paid from net revenues collected through library activities.

220

Designated for cable television station
Amount to be used only for expenditure by the City’s cable television station from net
revenues collected by Cable from special activities.

66

Designated for local improvement districts administration
Portion of City special assessment bond proceeds identified exclusively for future costs
of administering and accounting for existing improvement districts.

97

Designated for telephone
For payment of future telephone charges and maintenance.

59
$ 3,405

Total designated for general fund type

66

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Special Revenue Fund Type
NON-MAJOR GOVERNMENTAL FUNDS
Reserved for inventory
Amount available only for expenditure (i.e., consumption of existing supplies inventories
that have already been purchased).
Reserved for capital leases
The City periodically enters into capital leases. In governmental funds, revenue is
recognized when the proceeds are received. However, the unspent portion of the
proceeds is restricted to the capital items identified in the lease agreement.
Reserved for development impact fees
The development impact fees are covered by Chapter 28, Article VI of the Municipal
Code. Development impact fees are used exclusively to provide the necessary public
facilities and services to development. Residential development impact fees may be
spent only in the district (residential development district, not political district) in which
they were collected. This reserve is categorized as follows:
Parks and recreation:
Citywide parks
Citywide recreation facilities
Citywide open space & trails
District No. 1
District No. 2
District No. 3
Library:
Buildings
Books
Library
Fire protection facilities
Police facilities
Transportation
General government
Total reserved for development impact fees
Reserved for drug enforcement
Reserved by agreement with state and federal authorities for use in furthering the drug
enforcement effort. Revenues for this reserve are received through the public courts’
prosecution of drug offenses.
State
Federal
Total reserved for drug enforcement
Reserved for police and fire activities
In accordance with a voter initiative, beginning April 1994 the City collected an
additional separate sales tax for police and fire activities.
Police
Fire
Total reserved for police and fire activities

$

158

47

1,563
1,235
65
446
931
219
2,715
201
3,000
761
1,622
9,371
1,659
23,788

2,032
98
2,130

424
203
627
$ 26,750

Total reserved for special revenue fund type

67

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
TRANSPORTATION FUND
Designated for local transportation assistance
For specific transit-related buildings and equipment

$

716

NON-MAJOR GOVERNMENTAL FUNDS
Designated for home program
For community development block grant home program activities.

100

Designated for pool/park repair
For repair of area schools and City recreational facilities. The City contributes to
maintenance of area school’s facilities in which the City has no equity interest.

539

Total designated for special revenue fund type

$ 1,355

Debt Service Fund Type
Reserved for debt service
Certain assets have been reserved for future payment of debt service based upon the
requirements of the various bond ordinances.
General obligation debt service
Municipal property corporation
Highway users

$ 11,910
166
115

Total reserved for debt service fund type

$ 12,191

Capital Projects Fund Type
NON-MAJOR GOVERNMENTAL FUNDS
Reserved for capital projects
Certain assets have been reserved for future flood control storm drain construction.

$

919

Total reserved for capital projects fund type

$

919

Designated for street G.O. bond projects
Accounts for the construction of street lights, traffic signals, street landscaping, streets
and parking funded by authorization approved by voters on March 10, 1987, and
November 2, 1999.

$ 18,595

Designated for HURF bond projects
Accounts for the construction of streets and sidewalks. Funding is provided through
bonds issued under an authorization approved by voters on March 10, 1987.

9,199

Designated for government facilities
Accounts for G.O. bond funds used to plan and construct a new public works operations
center; housing, streets and park maintenance; transit, utilities, a tourism visitor center
and similar projects. Funding is provided under an authorization approved by voters on
November 2, 1999.

466

Designated for economic development
Accounts for G.O. bond funds used to promote new private sector job creation through
development and redevelopment in the City. Funding is provided under an authorization
approved by voters on November 2, 1999.

551

68

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Designated for open space/trails
Accounts for G.O. bond funds used to plan and acquire land and interests for the
preservation of open space; and planning, acquiring and constructing multi-use trails and
linear parks. Funding is provided under an authorization approved by voters on
November 2, 1999.

$ 1,057

Total designated for capital projects fund type

$ 29,868

Enterprise Fund Type
WATER AND SEWER FUND
Restricted for debt service
The City is also required by ordinance to have accumulated sufficient funds to pay all
principal and interest due on the following July 1 and January 1 payment dates. Since the
July 1 payment is already accrued as a current liability at year-end, only the January 1
payment is included in the reserve.

$

229

The City’s bond ordinances require an additional reserve for any Water and Sewer Bond
debt that is not insured by a surety bond. This reserve must be maintained at a balance
equal to the highest principal and interest coming due in any twelve-month period. As of
June 30, 2006, only the loans with the State Revolving Fund (authorized by revenue bond
election in 1961) were not covered by a surety bond.

1,116

Restricted for revenue bond retirement/replacement and extension
Two percent of net water revenues must, by bond ordinance, be reserved for the
replacement and extension of the City’s water distribution system, or for the retirement
of water revenue bonds. The reservation is only required to the extent that the reserve
equals two percent of the value of net fixed assets of the water and sewer fund.

8,689

Restricted for other purposes
Deposits related to a multi-jurisdictional water project are held in an escrow account
maintained by the State Treasurer, and are restricted as to use.
Total water and sewer
NON-MAJOR PROPRIETARY FUNDS
Net assets held by the housing fund may only be used for that purpose.

413
10,447

1,434
$ 11,881

Total restricted for enterprise fund type
Permanent Fund Type
NON-MAJOR GOVERNMENTAL FUNDS
Reserved for cemetery perpetual care
Funds are reserved by ordinance for future cemetery maintenance and operational
expenses.

$ 5,169

Total reserved for permanent fund type

$ 5,169

69

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

XVI. Employee retirement systems and pension plans
A. Plan descriptions
The City contributes to the three retirement plans described below. Benefits are established by state
statute and generally provide retirement, death, long-term disability, survivor, and health insurance
premium benefits.
The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined
benefit pension plan that covers general employees of the City. The ASRS is governed by the Arizona
State Retirement System Board according to the provisions of ARS Title 38, Chapter 5, Article 2.
The Public Safety Personnel Retirement System (PSPRS) is an agent multiple-employer defined benefit
pension plan that covers public safety personnel who are regularly assigned hazardous duty as employees
of the State of Arizona or one of its political subdivisions. The PSPRS, acting as a common investment
and administrative agent, is governed by a five member board, known as The Fund Manager, and 162
local boards according to the provisions of ARS Title 38, Chapter 5, Article 4. PSPRS is agent for the
eligible Glendale Fire and Glendale Police personnel.
The Elected Officials Retirement Plan (EORP) is a cost-sharing multiple-employer defined benefit
pension plan that covers elected officials and judges of certain state and local governments. The EORP
is administered by The Fund Manager of PSPRS according to the provisions of ARS Title 38, Chapter 5,
Article 3.
B. Financial reports
Each plan issues a publicly available financial report that includes its financial statements and required
supplementary information. A report may be obtained by writing or calling the applicable plan.
ASRS
3300 North Central Avenue
Phoenix, Arizona 85012-0250

PSPRS or EORP
3010 East Camelback Road #200
Phoenix, Arizona 85016

(602) 240-2000 or (800) 621-3778

(602) 255-5575

C. Funding policy
The Arizona State Legislature establishes and may amend contribution rates for active plan members and
the City.
Cost Sharing Plans. For the year ended June 30, 2007, active ASRS members and the City were each
required by statute to contribute at the actuarially determined rate of 9.10% (8.60% retirement and 0.50%
long-term disability) of the members’ annual covered payroll. The City’s contributions from employer
and employees to ASRS for the years ended June 30, 2007, 2006 and 2005 were $12,697, $9,310 and
$7,094, respectively, which were equal to the required contributions for the year.

In addition, active EORP members were required by statute to contribute 7.00% of the members’ annual
covered payroll. The City was required to remit contributions of 18.55% of the members’ annual
covered payroll, as determined by actuarial valuation. The City’s contributions from employer and
employees to EORP for the years ended June 30, 2007, 2006 and 2005 were $59, $39 and $29,
respectively, which were equal to the required contributions for the year.

70

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)
Agent Plans. For the year ended June 30, 2007, PSPRS members were required by statute to contribute
7.65% of the members’ annual covered payroll, and the City was required to contribute at the actuarially
determined rate of 11.53% and 13.05% for Fire and Police, respectively.
Annual Pension Cost (APC). The City’s pension cost for Police and Fire for the year ended June 30,
2007, the date of the most recent available actuarial valuation, and related information follow.

Fire

Police

Contribution rates:
City
Plan members

11.53%
7.65%

13.05%
7.65%

Annual pension cost

$1,812

$3,270

Projected unit credit

Projected unit credit

Actuarial assumptions:
Investment rate of return
Projected salary increases
Includes inflation at

8.50%
5.50% - 8.50%
5.00%

8.50%
5.50% - 8.50%
5.00%

Amortization method

Level % open

Level % open

29 years for unfunded
actuarial accrued liability,
20 years for excess

29 years for unfunded
actuarial accrued liability,
20 years for excess

Smoothed market value

Smoothed market value

Actuarial cost method

Remaining amortization period

Asset valuation method

D. Three year trend information for PSPRS
Information for the agent plan for PSPRS for Glendale Fire and Police as of the most recent available
actuarial valuations for June 30, 2007, follows.
Contributions required and contributions made
Year Ended
June 30
Police
2007
2006
2005
Fire
2007
2006
2005

Percentage of APC
Contributed

APC

Net Pension
Obligation

$
$
$

3,270
2,991
2,172

100.0 %
100.0 %
100.0 %

$
$
$

-

$
$
$

1,812
842
895

100.0 %
100.0 %
100.0 %

$
$
$

-

Includes insurance premium tax, where applicable.
E. Required supplementary information
Analysis of funding progress for the agent plan as of the most recent available actuarial valuation, June
30, 2007, follows.

71

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

Valuation
Date
June 30
Police
2007
2006
2005

Valuation
Date
June 30
Fire
2007
2006
2005

Actuarial
Value
of
Plan Assets
$
$
$

75,860
77,968
74,645

Actuarial
Accrued
Liability
$
$
$

Actuarial
Value
of
Plan Assets
$
$
$

58,882
60,772
58,641

128,670
110,181
96,763

Funding
Liability
(Excess)
$
$
$

Actuarial
Accrued
Liability
$
$
$

83,023
74,401
63,202

52,810
32,213
22,118

Funding
Liability
(Excess)
$
$
$

24,141
13,629
4,561

Annual
Covered
Payroll

Funded
Ratio
59.0%
70.8%
77.1%

$
$
$

Annual
Covered
Payroll

Funded
Ratio
70.9%
81.7%
92.8%

25,375
22,052
19,240

$
$
$

16,029
13,518
11,376

Unfunded
Liability as
Percentage
of Covered
Payroll
208.1%
146.1%
115.0%

Unfunded
Liability as
Percentage
of Covered
Payroll
150.6%
100.8%
40.1%

XVII. Other post-employment benefits
Other than the pension benefits through the Arizona State Retirement System or the Arizona Public Safety
Personnel Retirement System, the City does not provide post-employment benefits. However, the City does
allow all of its retired employees to participate in the health care and life insurance plan provided to active
employees. The plan provides health, dental, and life insurance to participants. The retired employees pay
the entire cost of their participation in the plan. The impact of GASB 43 and 45 OPEB is currently under
review.
The City makes no contribution to the plan for former employees. Since the number of retirees is small, and
their portion of the premium cost is paid to providers at the same time as the City’s active employee portion,
the City has chosen to account for monies received from retirees, but not yet paid out, as a part of employee
benefits fund liability.
XVIII. Contingent liabilities and commitments
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by
the grantor cannot be determined at this time, although the city expects such amounts, if any, to be
immaterial.
The City is subject to claims and litigation, which arise in the ordinary course of its operations. In the
opinion of the City Attorney, the resolution of such claims and litigation will have no material adverse effect
on the financial position or the future operations of the City.
XIX. Subsequent events
On July 12, 2007, the City received the $61,000 par amount of bond proceeds from the 2007 General
Obligation Bonds sold on June 26, 2007. Principal and interest on the bonds will be paid from secondary
property tax revenues. The proceeds will be used to finance construction of streets, parking, public safety,
flood control and government facility projects.

72

CITY OF GLENDALE, ARIZONA
Notes to the Financial Statements
June 30, 2007
(amounts expressed in thousands)

On July 12, 2007, the Arizona non-profit corporation Western Loop 101 Public Facilities Corporation was
organized under Chapter 26, Title 10 of the Arizona Revised Statutes. The purpose of the corporation is to
cause construction and equipping of a spring training facility for two Major League Baseball teams and all
other related improvements or fixtures (the Project). The Board of Directors, as authorized by Mayor and
Council in the formation of the corporation, can borrow an amount not to exceed $125,000 (the Obligations)
for the cost of design, construction, installation, equipping, and improvement of the Project. The Obligations
are debt of the corporation and not the City. In addition, the City Manager is authorized by Mayor and
Council to execute the necessary documents related to the Project, and the Chief Financial Officer is
authorized to advance funds for Project for which funds may be reimbursed by proceeds from the
Obligations. The Board of Directors of the corporation shall consist of four city employees and one private
citizen with experience in the sports facility industry. Subsequent to year-end, contracts have been entered
into for architect services in the amount of $5,060, preconstruction services in the amount of $948, and
$3,488 for engineering and surveying services for the project. City funds advanced to pay for costs of the
Project total $1,420.
On September 11, 2007, the Citizens of Glendale, at a special election, voted and passed proposition 401
Public Safety Funding Enhancement. This amendment to the City Code increased the privilege (sales) tax
and retail sales tax rate, excluding food for home consumption by four-tenths of one percent (.4%) effective
November 1, 2007. The revenue generated by this increase will be dedicated for public safety needs, twothirds for police and one-third for fire.
On November 6, 2007, the City issued $109,110 in transportation excise tax revenue bonds, series 2007.
Proceeds will be used to finance transportation projects throughout the City. The revenues pledged for the
repayment of the bonds will come from the half cent sales tax approved by voters in 2001 and dedicated
solely for transportation projects.
The property tax rate for the 2007-08 fiscal year decreased for citizens of Glendale from $1.72 to $1.62 per
one hundred dollars of assessed value. The ten cent tax rate decrease is minimized by the increase in property
values in Glendale.

The remainder of this page left blank intentionally.

73

This page left blank intentionally.

74

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

REQUIRED
SUPPLEMENTARY
INFORMATION
(other than MD&A)

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

This page left blank intentionally.

City of Glendale, Arizona
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

1 of 2

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment income (loss)
Proceeds from disposal of assets
Capital lease proceeds.
Miscellaneous
Total revenues
Add: Transfers in
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Contingencies
Miscellaneous
Debt service:
Principal
Interest
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

Final

60,266

$

60,266

Variance with
Final Budget
Positive
(Negative)

Actual
Amounts
(budgetary basis)
$

75,216

$

14,950

67,122
11,397
57,089
25,747
3,277
1,285
4,978
170,895
(6,842)
224,319

69,149
12,127
61,159
24,415
3,566
525
3,705
174,646
(6,842)
228,070

70,324
10,316
61,156
27,041
3,932
2,773
818
668
2,317
179,345
1,044
(8,677)
246,928

1,175
(1,811)
(3)
2,626
366
2,248
818
668
(1,388)
4,699
1,044
(1,835)
18,858

36,290
78,145
25,677
34,205
336
1,341
16,568
5,113

38,063
79,676
26,048
33,826
745
1,663
12,832
6,197

30,725
77,873
25,153
26,945
247
659
2,788

7,338
1,803
895
6,881
498
1,004
12,832
3,409

8,572
1,435
12,300
219,982

8,532
1,435
14,463
223,480

8,476
1,202
10,178
184,246

56
233
4,285
39,234

4,337

$

4,590

$

62,682

$

58,092

(Continued)

75

City of Glendale, Arizona
Budgetary Comparison Schedule (continued)
General Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

2 of 2

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Market adjustment on restricted investments not available for appropriation.
Internal charges for services provided.
Proceeds from disposal of assets.
Capital lease proceeds.
Less: Transfers in.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Capital outlay funded by capital lease.
Salaries payable.
Change in prepaid assets or inventory.
Internal charges for services provided.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.
The notes to the financial statements are an integral part of this statement.

76

$

246,928
(75,216)
2,185
(22,258)
(813)
(668)
(1,044)
8,677

$

157,791

$

184,246
25
(7,932)
40
(13,642)

$

162,737

City of Glendale, Arizona
Budgetary Comparison Schedule
Transportation Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Taxes
Intergovernmental
Charges for services
Investments
Proceeds from disposal of assets
Long term debt issued
Miscellaneous Revenues
Total revenues
Add: Transfers in
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Community services
Debt service:
Principal retirement
Interest expense
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

27,957

Actual
Amounts
(budgetary basis)

Final
$

27,957

$

24,155

Variance with
Final Budget
Positive
(Negative)
$

(3,802)

23,475
6,258
200
447
25,000
55,380
65,971
(65,821)
83,487

26,001
1,832
200
533
327
28,893
67,178
(66,029)
57,999

25,051
4,613
197
997
4
9
30,871
50,760
(46,603)
59,183

(950)
2,781
(3)
464
4
(318)
1,978
(16,418)
19,426
1,184

13,928

10,708

9,365

1,343

69,236
83,164

47,290
57,998

1,414
176
47,136
58,091

(1,414)
(176)
154
(93)

323

$

1

$

1,092

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Proceeds from disposal of assets.
Less: Transfers in.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Change in compensated absences liability.
Salaries payable.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

The notes to the financial statements are an integral part of this statement.

77

$

1,091

$

59,183
(24,155)
(4)
(50,760)
46,603

$

30,867

$

58,091
57
27

$

58,175

CITY OF GLENDALE, ARIZONA
Notes to Required Supplementary Information
June 30, 2007
(amounts expressed in thousands)
I.

Budgetary basis of accounting
The City prepares its annual budget on a basis, which differs from the GAAP basis. Budgetary comparison
schedules for the general and transportation funds are included as required supplementary information to
provide a meaningful comparison of actual results to budget on the budget basis. Budgetary comparison
schedules for all other funds are presented as other supplemental information after the combining statements.
In all cases, the budgetary schedules include a reconciliation of the adjustments required to convert the
budgetary revenues and expenditures or change in net assets on a budgetary basis, to revenues and
expenditures/expenses or change in net assets on a GAAP basis.

II.

Budgetary information
The City utilizes the following procedures in establishing the budgetary data reflected in the financial
statements.
1.

2.

3.

4.

5.

6.
III.

Prior to the first of June of each year, the City Manager submits to the Mayor and Council a proposed
operating budget for the fiscal year commencing the following July 1. The budget includes proposed
operating and capital expenditures and the means of financing them.
The projected beginning budgeted fund balances for each fund are based on preliminary estimates of the
June 30th ending actual budget basis fund balances rather than the June 30th ending budgeted fund
balances. These two amounts will differ because of differences in actual results for the year versus
planned results and by unused contingency appropriations.
Prior to July 1, after receiving comments in a public hearing, a tentative budget is adopted by the City
Council, which fixes an upper-dollar limit for all funds combined, beyond which the City may not
increase appropriations. After two weeks of legal advertising, the City Council legally adopts a final
budget ordinance, which fixes appropriations for each fund, except for the nonexpendable trust fund.
Budget basis expenditures may not exceed appropriations for each fund, except in conjunction with the
transfer of contingency funds. Contingency funds are appropriated for several funds as identified in the
budget basis schedules and may only be transferred with City Council approval. The City Council may
reallocate appropriations through amendment, but may not increase total appropriations above the total
budget, which was legally adopted for the fiscal year.
The Director of Management and Budget is generally authorized to transfer budgeted amounts within
departments’ approved capital or operating budgets, and the City Manager is authorized to transfer
appropriations between departments. Any new capital improvement projects or any nonbudgeted
projects require City Council approval.
Formal budgetary integration is employed as a management control device during the year for all funds.

Contingency appropriation
The principal purpose of a contingency appropriation is to cover any unforeseen expenditure, which may arise
after the budget is adopted. It is impossible to estimate revenues exactly or to determine in a prior year the
exact expenditures of each program or activity for the ensuing year. Thus, a contingency is essential for
budgetary purposes.
Contingency appropriation is re-established each fiscal year based on available fund balance and balancing
needs of the budget year. The unused balances of contingency appropriations are reflected in the budget basis
financial statements.

78

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

COMBINING
STATEMENTS

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

This page left blank intentionally.

NON-MAJOR GOVERNMENTAL FUNDS

Special Revenue Funds
Special revenue funds are used to account for revenues from specific taxes or other earmarked revenue sources,
which by law are designated to finance particular functions or activities of government and which, therefore,
cannot be diverted to other uses.
Community Development Block Grants Fund
This fund accounts for a series of ongoing entitlements received directly from the U. S. Department
of Housing and Urban Development (HUD). This fund also includes the HUD Rental
Rehabilitation and HOME programs.
Highway Users Gas Tax Fund
This fund accounts for capital outlay and maintenance of municipal streets and highways, as
mandated by the Arizona Revised Statutes. Financing for this fund is provided by state-shared fuel
taxes.
Development Impact Fees Fund
This fund accounts for fees covered by Chapter 28, Article VI of the Municipal Code. The fees are
used exclusively to provide the necessary public facilities and services for development.
Residential development impact fees may be spent only in the district (residential development
district, not political district) in which they are collected.
Other Special Revenue Fund
This fund accounts for various activities, including both the airport and civic center. Neither is
considered to be an enterprise fund for financial reporting purposes and the City Council’s present
intent is not to have user fees cover the total costs of providing services.
•
•
•
•

Municipal airport and civic center operations
Miscellaneous grants received from Federal, State or local governments
Recreation programs and site maintenance
Police and fire activities funded by a one percent sales tax levied directly by voter initiative
Debt Service Funds

Debt service funds are used to account for the accumulation of resources for, and the payment of, general longterm debt principal, interest and related costs.
General Obligation Debt Service Fund
The general obligation debt service fund accounts for the resources accumulated through a secondary
property tax levy and payments made for principal and interest on long-term general obligation debt of
governmental funds.
Highway Users Debt Service Fund
This fund accumulates monies for payment of all street and highway revenue bonds of the City.
Highway user fuel taxes are transferred from a special revenue fund to fund this debt.
Municipal Property Corporation Debt Service
The municipal property corporation debt service fund accounts for building lease payments received from the
general fund and subsequently paid as debt service to Municipal Property Corporation bondholders.

79

Special Assessment Debt Service Fund
This fund collects the assessments levied against owners of property within the districts and
disburses the amount collected to retire the bonds issued to finance related improvements.
Capital Projects Funds
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of
major capital facilities (other than those financed by proprietary funds and trust funds).
Streets Construction Fund
This fund accounts for the construction of streets, sidewalks, streetlights, traffic signals, and street
landscaping funded through G.O. and revenue bonds issued under authorizations approved by
voters on March 10, 1987, and November 2, 1999.
Fire and Police Construction Fund
This fund accounts for the construction of fire and police department facilities. Funding is
provided through G.O. bonds issued under authorizations approved by voters on March 10, 1987,
and November 2, 1999.
Parks Bond Construction Fund
The parks bond construction fund accounts for the construction of parks and recreation improvements.
Other Construction Fund
This fund accounts for the construction of various City projects. Funding is provided through G.O.
bonds issued under authorizations approved by voters on March 10, 1987, and November 2, 1999,
and the Federal Aviation Administration.
•
•
•
•
•
•
•
•

Flood control facilities
Library
Airport
Transit projects
Economic development
Open space/trails
Government facilities
Cultural facilities
Permanent Funds

Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting City’s programs.
Cemetery Perpetual Care Permanent Fund
This fund is used to account for the revenues received by the City from the sale of cemetery lots
and other related services.

80

This page left blank intentionally.

81

City of Glendale, Arizona
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2007
(amounts expressed in thousands)

Special Revenue Funds
Community
Development
Block Grants
ASSETS
Equity in pooled cash and investments
Receivables, net of allowance for doubtful accounts:
Property taxes
Accounts
Accrued interest
Intergovernmental receivable
Inventories and prepaid items
Restricted cash and investments
Deferred receivables
Total assets
LIABILITIES AND FUND BALANCES:
Liabilities:
Vouchers payable
Accounts payable
Retainage payable
Compensated absences - current
Intergovernmental payable
Due to other funds
Deposits
Matured interest payable
Deferred revenue
Matured bonds payable
Total liabilities
Fund balances:
Reserved
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances

$

21

$

2
535
3,307
3,865

$

218
6
234
3,307
3,765

$

82

Highway
Users
Gas Tax
$

1,723

$

1,560
158
3,441

$

565
49
42
656

Other
Special
Revenue
Fund

Development
Impact
Fees
$

24,714

$

24,714

$

926
926

$

744

$

1,557
16
2,718
4,474
717
10,226

$

615
5
30
2
2,976
2
2,946
6,576

-

205

23,788

2,757

100
100
3,865

2,580
2,785
3,441

23,788
24,714

539
354
3,650
10,226

$

$

$

Debt Service Funds
General
Obligation
Debt Service
$

26,921

$

826
27,747

$

$

3,515
611
11,711
15,837

Highway
Users
$

4,006

$

4,006

$

721
3,170
3,891

Municipal
Property
Corporation

Streets
Construction

Capital Project Funds
Fire
and
Parks
Police
Bond
Construction
Construction

$

2

$

9,432

$

2,410

$

7,715
7,717

$

20,533
25
29,990

$

27,644
30,054

$

4,836
2,715
7,551

$

2,135
60
2,195

$

2,690
2,690

$

9,839

$

24
9,863

$

111
198
309

Permanent Fund

Other
Construction
$

5,341

$

12,613
30
1,737
19,721

$

2,209
326
14
2,549

Cemetery
Perpetual
Care
$

5,169

$

71
5,240

$

71
71

Total
Non-major
Governmental
Funds
$

90,322

$

826
62,420
95
6,550
158
12,189
4,024
176,584

$

9,469
5
524
85
2
3,210
44
9,072
7,009
17,596
47,016

11,910

115

166

-

-

-

919

5,169

45,029

11,910
27,747

115
4,006

166
7,717

27,795
27,795
29,990

27,364
27,364
30,054

9,554
9,554
9,863

2,073
14,180
17,172
19,721

5,169
5,240

30,507
54,032
129,568
176,584

$

$

$

$

83

$

$

$

$

City of Glendale, Arizona
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed is thousands)

Special Revenue Funds
Community
Development
Block Grants
REVENUES
Taxes and special assessments
Licenses and permits
Intergovernmental
Charges for services
Investments
Miscellaneous
Total revenues

$

EXPENDITURES
Current:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Miscellaneous
Debt service:
Principal
Interest
Capital outlay
Total expenditures

3,758
237
3,995

17,324
17,324

$

7,523
1,322
8,845

$

6,236
8,236
5,106
165
1,168
20,911

12,682
-

98
5
13
-

994
9,128
64
2,983
550
14
195

124
3,984

31
6
3,006
15,725

2,097
302
6,192
8,707

3,308
17,236

11

1,599

138

3,675

-

8
1,229
(4,770)
(3,533)

(87)
(87)

1,486
(5,845)
(4,359)

11

(1,934)

51

OTHER FINANCING SOURCES (USES)
Long-term debt issued
Premium on long-term debt issued
Proceeds from equipment disposal
Transfers in
Transfers out
Total other financing sources and uses
Excess (deficiency) of revenues
and other sources over
Net change in fund balances

$

$

Other
Special
Revenue
Fund

Development
Impact
Fees

3,860
-

Excess (deficiency) of revenues
over expenditures

Fund balances, July 1
Fund balances, June 30

Highway
Users
Gas Tax

89
100

84

$

4,719
2,785

$

23,737
23,788

(684)

$

4,334
3,650

Debt Service Funds
General
Obligation
Debt Service
$

$

19,499
19,499

Highway
Users
$

5
5

Municipal
Property
Corporation

Special
Assessment
Debt
Service

$

$

231
231

12
12

Streets
Construction

Capital Projects Funds
Fire
and
Parks
Police
Bond
Construction
Construction

Other
Construction

$

$

$

893
108
1,001

10,752
10
10,762

$

479
5
484

Permanent Fund

1,860
321
330
2,511

Total
Non-major
Governmental
Funds

Cemetery
Perpetual
Care
$

257
257

$

25,747
7,523
41,930
5,106
3,668
1,863
85,837

13

3

14

-

125
3
4
-

268
117
-

2
-

77
2
43
-

-

1,564
9,245
66
3,034
4,410
12,713
225

10,154
7,049
17,216

3,170
1,551
4,724

2,715
10,343
13,072

39
1
40

9,222
9,354

14,023
14,408

5,873
5,875

8,113
8,235

-

18,206
19,252
49,861
118,576

2,283

(4,719)

(12,841)

(28)

(8,353)

(3,646)

(5,391)

(5,724)

257

(32,739)

-

4,770
4,770

11,307
11,307

(112)
(112)

20,198
397
(4,353)
16,242

28,394
557
(69)
28,882

(11)
(11)

12,408
244
(302)
12,350

-

61,000
1,198
8
18,792
(15,549)
65,449

2,283

51

(1,534)

(140)

7,889

25,236

9,627
11,910

$

64
115

$

1,700
166

$

140
-

$

19,906
27,795

$

85

2,128
27,364

(5,402)

$

14,956
9,554

6,626

$

10,546
17,172

257

$

4,912
5,169

32,710

$

96,858
129,568

City of Glendale, Arizona
Budgetary Comparison Schedule
Municipal Property Corporation Construction Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Variance with
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual

Final

18,072

$

18,072

Final Budget

Amounts

Positive

(budgetary basis)

(Negative)

$

16,668

$

(1,404)

RESOURCES (INFLOWS):
Long-term debt issued

87,000

87,000

72,327

(14,673)

Investment income

-

-

1,281

1,281

Miscellaneous revenue

-

-

19

87,000

87,000

73,627

Total revenues
Operating transfer out

(595)

Amounts available for appropriation

(595)

19
(13,373)

(132)

463

105,667

105,667

90,163

(15,240)

General administrative

11,965

11,965

108

11,857

Capital outlay

92,512

91,805

72,221

19,584

104,477

103,770

72,329

31,441

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:

Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

1,190

$

1,897

$

17,834

$

16,201

$

90,163

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.

(16,668)

Long-term debt issued.

(72,327)

Add: Transfers out.

132

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

$

1,300

$

72,329

$

72,329

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

86

City of Glendale, Arizona
Budgetary Comparison Schedule
Community Development Block Grants Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual
Amounts
(budgetary basis)

Final
7

$

7

$

93

Variance with
Final Budget
Positive
(Negative)
$

86

RESOURCES (INFLOWS):
Intergovernmental
Miscellaneous
Total revenues
Amounts available for appropriation

6,056
6,056
6,063

3,852
3,852
3,859

3,758
237
3,995
4,088

(94)
237
143
229

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Community environment
Capital outlay
Total charges to appropriations

6,063
6,063

3,859
3,859

3,858
124
3,982

1
(124)
(123)

Budgetary fund balance, June 30, 2007

$

-

$

-

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Salaries payable.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

87

106

$

106

$

4,088
(93)

$

3,995

$

3,982
2

$

3,984

City of Glendale, Arizona
Budgetary Comparison Schedule
Highway Users Gas Tax Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Intergovernmental
Proceeds from disposal of assets
Total revenues
Add: Transfers in
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Street maintenance
Capital outlay
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

Final

3,768

$

3,768

Actual
Amounts
(budgetary basis)
$

4,884

Variance with
Final Budget
Positive
(Negative)
$

1,116

15,838
15,838
1,709
(4,732)
16,583

16,818
16,818
1,709
(4,732)
17,563

17,324
8
17,332
1,229
(4,770)
18,675

506
8
514
(480)
(38)
1,112

13,376
3,170

13,716
3,171

12,662
3,006

1,054
165

31
6
16,583

31
6
16,924

31
6
15,705

1,219

$

-

$

639

$

2,970

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Proceeds from disposal of assets.
Less: Transfers in.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Capital outlay.
Salaries payable.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

88

$

2,331

$

18,675
(4,884)
(8)
(1,229)
4,770

$

17,324

$

15,705
20

$

15,725

City of Glendale, Arizona
Budgetary Comparison Schedule
Development Impact Fees Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual
Amounts
(budgetary basis)

Final

25,273

$

25,273

$

23,738

Variance with
Final Budget
Positive
(Negative)
$

(1,535)

RESOURCES (INFLOWS):
Licenses and permits
Intergovernmental
Investments
Total revenues
Less: Transfers out
Amounts available for appropriation

6,901
600
399
7,900
(58)
33,115

6,776
600
465
7,841
(57)
33,057

7,523
1,322
8,845
(87)
32,496

747
(600)
857
1,004
30
(561)

CHARGES TO APPROPRIATIONS (OUTFLOWS):
General administration
Public safety
Street maintenance
Community services
Capital outlay
Principal retirement
Interest expense
Total charges to appropriations

2,057
2,420
8,769
17,468
2,097
302
33,113

2,149
1,540
3,820
23,147
2,097
302
33,055

98
13
6
6,191
2,097
302
8,707

2,051
1,540
(13)
3,814
16,956
24,348

Budgetary fund balance, June 30, 2007

$

2

$

2

$

23,789

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

89

$

23,787

$

32,496
(23,738)
87

$

8,845

$

8,707

$

8,707

City of Glendale, Arizona
Budgetary Comparison Schedule
Other Special Revenue Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

2,413

Final
$

2,413

Actual
Amounts
(budgetary basis)
$

4,471

Variance with
Final Budget
Positive
(Negative)
$

2,058

RESOURCES (INFLOWS):
Taxes
Intergovernmental
Charges for services
Investments
Miscellaneous
Total revenues
Add: Transfers in
Less: Transfers out
Amounts available for appropriation

9,480
9,644
4,831
10
928
24,893
1,526
(8,363)
20,469

9,595
10,383
4,831
100
1,128
26,037
1,526
(8,362)
21,614

6,236
8,236
5,106
149
1,168
20,895
1,486
(5,845)
21,007

(3,359)
(2,147)
275
49
40
(5,142)
(40)
2,517
(607)

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Miscellaneous
Contingencies
Capital outlay
Total charges to appropriations

1,176
9,475
162
3,678
718
330
4,101
19,640

1,180
11,305
162
3,456
628
189
330
3,174
20,424

993
9,112
64
2,982
553
14
196
3,308
17,222

187
2,193
98
474
75
(14)
(7)
330
(134)
3,202

Budgetary fund balance, June 30, 2007

$

829

$

1,190

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Accrued interest
Less: Transfers in.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Salaries payable.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

90

3,785

$

2,595

$

21,007
(4,471)
16
(1,486)
5,845

$

20,911

$

17,222
14

$

17,236

City of Glendale, Arizona
Budgetary Comparison Schedule
General Obligation Debt Service Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Taxes
Total inflows
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Miscellaneous
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

9,345

Final
$

9,345

Actual
Amounts
(budgetary basis)
$

9,627

Variance with
Final Budget
Positive
(Negative)
$

282

19,571
19,571
28,916

19,571
19,571
28,916

19,499
19,499
29,126

345

345

184

161

10,154
7,049
17,548

11,189
7,049
18,583

10,154
7,049
17,387

1,035
1,196

11,368

$

10,333

$

11,739

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Arbitrage rebate
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

91

(72)
(72)
210

$

1,406

$

29,126
(9,627)

$

19,499

$

17,387
(171)

$

17,216

City of Glendale, Arizona
Budgetary Comparison Schedule
Highway User Debt Service Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Miscellaneous revenue
Total revenues
Add: Transfers in
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Miscellaneous
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

60

Actual
Amounts
(budgetary basis)

Final
$

60

$

64

Variance with
Final Budget
Positive
(Negative)
$

4

4,732
4,792

4,780
4,840

5
5
4,770
4,839

11

119

118

1

3,170
1,551
4,732

3,170
1,551
4,840

3,170
1,551
4,839

1

60

$

-

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
Less: Transfers in.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Arbitrage rebate
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

92

-

5
5
(10)
(1)

$

$

-

4,839
(4,770)
(64)

$

5

$

4,839
(115)

$

4,724

City of Glendale, Arizona
Budgetary Comparison Schedule
Municipal Property Corporation Debt Service Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Investments
Total revenues
Add: Transfers in
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Miscellaneous
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

800

Final
$

800

Actual
Amounts
(budgetary basis)
$

164

Variance with
Final Budget
Positive
(Negative)
$

(636)

25
25
11,306
12,131

114
114
11,307
12,221

190
190
11,307
11,661

20

177

175

2

2,715
8,771
11,506

2,715
8,771
11,663

2,715
8,771
11,661

2

625

$

558

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Investment.
Less: Transfers in.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Interest.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

93

-

76
76
(560)

$

$

(558)

11,661

(164)
41
(11,307)
$

231

$

11,661
1,411

$

13,072

City of Glendale, Arizona
Budgetary Comparison Schedule
Special Assessment Debt Service Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Special assessments
Total revenues
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

139

Actual
Amounts
(budgetary basis)

Final
$

139

$

140

10
10
149

12
12
151

12
12
(112)
40

39
1
40

39
1
40

39
1
40

109

$

111

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

94

-

Variance with
Final Budget
Positive
(Negative)
$

1

(112)
(111)

$

(111)

$

40
(140)
112

$

12

$

40

$

40

City of Glendale, Arizona
Budgetary Comparison Schedule
Streets Construction Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Variance with
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual

Final

22,048

$

22,048

$

Final Budget

Amounts

Positive

(budgetary basis)

(Negative)

19,877

$

(2,171)

RESOURCES (INFLOWS):
Investments

170

169

835

666

-

-

109

109

1,350

20,000

20,198

198

-

-

397

397

Total revenues

1,520

20,169

21,539

1,370

Add: Transfers in

-

-

5

(122)

(107)

Miscellaneous
Long-term debt issued
Premium on long-term debt issued

Less: Transfers out
Amounts available for appropriation

5

(4,358)

(4,251)

23,446

42,110

37,063

(5,047)

-

-

125

(125)

Community services

2,431

2,496

3

2,493

Street maintenance

4,259

4,434

4

4,430

16,756

15,140

9,222

5,918

23,446

22,070

9,354

12,716

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General administration

Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

-

$

20,040

$

27,709

$

7,669

$

37,063

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.

(19,877)

Market adjustment on restricted investments not available for appropriation.

57

Long-term debt issued.

(20,198)

Premium on long-term debt issued.

(397)

Add: Transfers out.

4,358

Less: Transfers In.

(5)

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

$

1,001

$

9,354

$

9,354

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

95

City of Glendale, Arizona
Budgetary Comparison Schedule
Fire and Police Construction Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Variance with
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual
Final

5,899

$

5,899

Final Budget

Amounts

Positive

(budgetary basis)

(Negative)

$

2,106

$

(3,793)

RESOURCES (INFLOWS):
Intergovernmental revenue

-

Investments

-

10,752

-

22

22

28,175

28,394

219
558

10

Long-term debt issued

18,390

10,752

Premium on long-term debt issued

-

-

558

Miscellaneous

-

-

10

10

18,400

28,175

39,736

11,561

Total revenues
Less: Transfers out

(29)

Amounts available for appropriation

(29)

24,270

(69)

34,045

(40)

41,773

7,728

CHARGES TO APPROPRIATIONS (OUTFLOWS):
General administration
Public safety
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

-

-

268

6,821

6,693

117

(268)
6,576

17,449

21,196

14,023

7,173

24,270

27,889

14,408

13,481

$

-

$

6,156

$

27,365

$

21,209

$

41,773

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Long-term debt issued.

(28,394)

Premium on long-term debt issued.

(558)

Market adjustment on restricted investments not available for appropriation.

(22)

Add: Transfers out.

69

The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.

(2,106)

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

$

10,762

$

14,408

$

14,408

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

96

City of Glendale, Arizona
Budgetary Comparison Schedule
Parks Bond Construction Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Variance with
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual

Final

15,456

$

15,456

Final Budget

Amounts

Positive

(budgetary basis)

(Negative)

$

14,908

$

(548)

RESOURCES (INFLOWS):
Investments

119

106

473

-

-

5

5

119

106

478

372

Miscellaneous
Total revenues
Less: Transfers out

(51)

Amounts available for appropriation

(51)

15,524

367

(11)

15,511

40

15,375

(136)

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General administration
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

3,199

3,195

2

3,193

12,325

11,042

5,873

5,169

15,524

14,237

5,875

8,362

$

-

$

1,274

$

9,500

$

8,226

$

15,375

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.

(14,908)

Market adjustment on restricted investments not available for appropriation.

6

Add: Transfers out.

11

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

$

484

$

5,875

$

5,875

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

97

City of Glendale, Arizona
Budgetary Comparison Schedule
Other Construction Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Variance with
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual
Final

10,923

$

10,923

Final Budget

Amounts

Positive

(budgetary basis)

(Negative)

$

10,418

$

(505)

RESOURCES (INFLOWS):
Intergovernmental
Investments
Miscellaneous
Long-term debt issued
Premium on long-term debt issued
Total revenues
Less: Transfers out

2,227

100

1,860

1,760

54

31

321

290

-

-

332

11,241

12,728

12,408

-

-

244

244

13,522

12,859

15,165

2,306

(146)

Amounts available for appropriation

332
(320)

(146)

24,299

(302)

23,636

25,281

(156)
1,645

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General administration
Community services
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

-

-

77

(77)

6,689

634

45

589

17,610

23,002

8,015

14,987

24,299

23,636

8,137

15,499

-

$

-

$

17,144

$

17,144

$

25,281

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.

(10,418)

Long-term debt issued.

(12,408)

Premium on long-term debt issued.

(244)

Compensated absence adjustment

(2)

Add: Transfers out.

302

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

$

2,511

$

8,137

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Capital outlay recognized on a GAAP basis only

98

Total expenditures as reported in the statement of revenues, expenditures, and changes in fund
balances - governmental funds.

$

98

8,235

City of Glendale, Arizona
Budgetary Comparison Schedule
Cemetery Perpetual Care Permanent Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

Actual
Amounts
(budgetary basis)

Final

4,860

$

4,860

$

4,912

Variance with
Final Budget
Positive
(Negative)
$

52

RESOURCES (INFLOWS):
Investments
Total revenues
Amounts available for appropriation

122
122
4,982

190
190
5,050

257
257
5,169

67
67
119

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Public Works
Total charges to appropriations

4,982
4,982

4,982
4,982

-

4,982
4,982

Budgetary fund balance, June 30, 2007

$

-

$

68

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances governmental funds.

99

5,169

$

5,101

$

5,169
(4,912)

$

257

City of Glendale, Arizona
Combining Statement of Net Assets
Non-Major Proprietary Funds - Business-type Activities
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Sanitation
ASSETS
Current assets:
Equity in pooled cash and investments
Receivables:
Accounts
Allowance for uncollectibles
Intergovernmental receivable
Inventories and prepaid items
Total current assets

$

4,509

Housing

$

1,723
(26)
6,206

Noncurrent assets:
Restricted cash and investments
Capital assets:
Capital assets
Accumulated depreciation
Capital assets, net
Total noncurrent assets
Total assets

Total

1,503

$

22
236
5
1,766

6

1,745
(26)
236
5
7,972

-

9,638
(6,233)
3,405
3,411
9,617

11,407
(6,020)
5,387
5,387
7,153

6,012

6
21,045
(12,253)
8,792
8,798
16,770

LIABILITIES
Current liabilities:
Vouchers payable
Accounts payable
Compensated absences
Due to other funds
Intergovernmental payable
Deposits
Unearned rent
Current portion of long-term debt:
Capital lease payable
Interest payable
Total current liabilities

131
260
5
84
-

48
18
19
12
34
5

131
48
278
19
17
118
5

661
20
1,161

136

661
20
1,297

Noncurrent liabilities:
Compensated absences
Other long-term debt
Capital lease obligations
Total noncurrent liabilities
Total liabilities

83
1,688
1,771
2,932

166
30
196
332

249
30
1,688
1,967
3,264

1,056

5,387

6,443

5,629
6,685

1,434
6,821

1,434
5,629
13,506

NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Other purposes
Unrestricted
Total net assets

$

100

$

$

City of Glendale, Arizona
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Non-Major Proprietary Funds - Business-type Activities
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Business-type Activities
Enterprise Funds
Sanitation
Operating revenues:
Intergovernmental
Container service
Curb service
Other fees
Total operating revenues

$

Operating expenses:
Housing
Sanitation
Depreciation
Total operating expenses
Operating income (loss)

$

12,775
962
13,737
900

Nonoperating revenues (expenses):
Impact fees
Investments
Interest expense
Gain on disposal of assets
Intergovernmental - capital grants
Total nonoperating revenue (expenses)

Transfers in
Change in net assets

$

101

8,254
661
8,915

Total
$

8,582
357
8,939
(24)

15
210
(77)
66
214

Income before contributions and transfers

Total net assets - beginning
Total net assets - ending

4,968
9,659
10
14,637

Housing

8,254
4,968
9,659
671
23,552

8,582
12,775
1,319
22,676
876

248
248

15
210
(77)
66
248
462

1,114

224

1,338

-

505

505

1,114

729

1,843

5,571
6,685

$

6,092
6,821

$

11,663
13,506

City of Glendale, Arizona
Combining Statement of Cash Flows
Non-Major Proprietary Funds - Business-type Activities
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Sanitation
Cash flows from operating activities:
Cash received from customers
Cash received from federal government
Cash paid to suppliers:
Internal city departments
External vendors
Cash paid to employees for services
Net cash provided by operating activities

$

$

(7,700)
(999)
(4,091)
1,846

Cash flows from noncapital
financing activities:
Proceeds from sale of investments
Transfers in
Net cash provided by noncapital
financing activities
Cash flows from capital and related
financing activities:
Principal payments on obligations
Acquisition of capital assets and rights
Impact fees
Interest payments on obligations
Capital grant proceeds
Net cash provided by (used for) capital and
related financing activities

Net increase in cash and cash
equivalents during fiscal year

$

102

Total

638
8,050

$

(7,022)
(1,550)
116

15,274
8,050
(7,700)
(8,021)
(5,641)
1,962

-

8
505

8
505

-

513

513

(247)
248

(63)
(879)
15
(79)
248

(63)
(632)
15
(79)
-

Cash flows from investing activities:
Interest received from investments
Net cash provided by investing activities

Cash and cash equivalents, July 1
Cash and cash equivalents, June 30

14,636
-

Housing

(759)

1

(758)

210
210

-

210
210

1,297

630

1,927

3,218
4,515

$

873
1,503

$

4,091
6,018

Sanitation
Reconciliation of operating income (loss)
to net cash provided by
operating activities:
Operating income (loss)
Adjustments to reconcile operating
income to net cash provided
by operations:
Depreciation
Changes in assets and liabilities:
Accounts receivable
Intergovernmental receivable
Vouchers payable
Accrued expenses
Intergovernmental payable
Deposits
Unearned rent
Due to other funds
Compensated absences
Proceeds from disposal of assets
Net cash provided by operating activities

Reconciliation of statement of net assets
cash and investments to the
statement of cash flows:
Per combined statement of net assets:
Equity in pooled cash and investments
Restricted cash and investments
Total cash and cash equivalents

$

$

$
$

103

900

Housing

$

(24)

Total

$

876

962

357

1,319

(14)
(4)
(10)
12
(1)
1
1,846

(21)
(119)
17
(85)
(2)
(9)
2
116

(35)
(119)
13
(10)
(85)
10
(9)
1
1
1,962

4,509
6
4,515

$

$
$

1,503
1,503

$

$
$

6,012
6
6,018

City of Glendale, Arizona
Budgetary Comparison Schedule
Water and Sewer Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Intergovernmental
Charges for services:
Metered water sales
Sewer service charges
Impact fees
Other fees
Investments
Miscellaneous
Proceeds from bonds sold
Proceeds from equipment disposal
Total revenues
Add: Transfers in
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
General administration
Water
Sewer
Bond issuance cost
Contingencies
Capital outlay
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

Actual
Amounts
(budgetary basis)

Final

104,276

$

104,276

$

98,607

Variance with
Final Budget
Positive
(Negative)
$

(5,669)

-

-

11

35,086
24,647
10,268
1,040
35
88,250
159,326
263,602

35,210
24,647
5,000
2,000
800
45,000
112,657
(881)
216,052

30,987
23,614
6,242
1,199
4,701
359
45,684
39
112,836
14
211,457

(4,223)
(1,033)
1,242
1,199
2,701
(441)
684
39
179
14
881
(4,595)

11,071
17,829
13,758
5,000
176,856

11,710
25,472
26,482
135,255

11,557
16,525
12,446
494
72,934

153
8,947
14,036
(494)
62,321

7,118
10,015
241,647

7,118
10,015
216,052

7,118
9,757
130,831

258
85,221

21,955

104

$

-

$

80,626

11

$

80,626

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Interest earned on restricted assets not available for appropriation.
Market adjustment on restricted investments not available for appropriation.
Revenues offset directly by bad debt expense on budgetary basis.
Capital outlay contributed.
Bond proceeds.
Proceeds from equipment disposals.
Gain on disposal of assets.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Less: Tranfers in.
Total revenues as reported on the statement of revenues, expenses, and changes in fund
net assets.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Differences - budget to GAAP:
Bad debt expense.
Amortization of capitalized bond issuance expense.
Capital outlay expenditure.
Change in compensated absences liability.
Change in prepaid assets or inventory.
Amortization and depreciation expense.
Bond issuance costs.
Principal payments on long-term obligations.
Interest expense.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Change in accrued payroll.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets, excluding loss from joint venture and disposal of assets.

105

$

211,457

(98,607)
161
(490)
271
(197)
(45,684)
(39)
38
(212)
(14)
$

66,684

$

130,831
271
80
(72,934)
152
(6)
13,673
(491)
(7,118)
(1,193)
(212)
92

$

63,145

City of Glendale, Arizona
Budgetary Comparison Schedule
Landfill Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Charges for services:
Landfill user fees
Recycling fees
Other fees
Proceeds from equipment disposal
Investments
Impact fees
Total revenues
Less: Transfers out
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Contingencies
Landfill
Capital outlay
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

18,270

Final
$

18,270

Actual
Amounts
(budgetary basis)
$

18,729

Variance with
Final Budget
Positive
(Negative)
$

459

5,472
2,815
97
480
181
9,045
(4)
27,311

6,355
2,800
110
850
73
10,188
(4)
28,454

6,682
3,301
2
1,091
131
11,207
(155)
29,781

327
501
(110)
2
241
58
1,019
(151)
1,327

2,000
7,099
1,532

2,000
7,099
1,532

6,822
943

2,000
277
589

414
32
11,077

414
32
11,077

365
31
8,161

49
1
2,916

16,234

$

17,377

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Revenues offset directly by bad debt expense on budgetary basis.
Proceeds from disposal of capital assets.
Gain on disposal of assets.
Add: Transfers out.
Total revenues as reported on the statement of revenues, expenses, and changes in fund
net assets.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Bad debt expense.
Capital outlay expenditures.
Change in compensated absences liability.
Change in estimated landfill post-closure liability.
Depreciation expense.
Principal payments on long-term obligations.
Interest expense.
Accrued payroll.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets.

106

21,620

$

4,243

$

29,781
(18,729)
(369)
(3)
(2)
1
155

$

10,834

$

8,161
(2)
(943)
32
588
1,132
(365)
(2)
11
(369)

$

8,243

City of Glendale, Arizona
Budgetary Comparison Schedule
Sanitation Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Charges for services:
Container service
Curb service
Impact fees
Recycle sales
Investments
Proceeds from equipment disposal
Proceeds from lease
Total revenues
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Sanitation
Capital outlay
Debt service:
Principal
Interest
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

4,026

Final
$

4,026

Actual
Amounts
(budgetary basis)
$

5,010

Variance with
Final Budget
Positive
(Negative)
$

984

4,653
9,723
57
70
775
15,278
19,304

4,964
9,649
16
150
669
15,448
19,474

4,968
9,626
15
10
210
69
701
15,599
20,609

4
(23)
(1)
10
60
69
32
151
1,135

13,774
1,288

13,774
1,288

12,723
700

1,051
588

764
79
15,905

764
79
15,905

764
79
14,266

1,639

3,399

$

3,569

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Revenues offset directly by bad debt expense on budgetary basis.
Proceeds from disposal of capital assets.
Gain on disposal of assets.
Capital lease proceeds.
Total revenues as reported on the combining statement of revenues, expenses, and changes in fund
net assets - non-major proprietary funds - business-type activities.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Bad debt expense.
Capital outlay.
Change in compensated absences liability.
Depreciation expense.
Interest expense.
Principal payments on long-term obligations.
Accrued payroll.
Internal staff and administrative charges reported as revenue only on budgetary basis.
Total expenses as reported in the combining statement of revenues, expenses, and changes in fund
net assets - non-major proprietary funds.

107

6,343

$

2,774

$

20,609

(5,010)
(42)
75
(69)
66
(701)
$

14,928

$

14,266
75
(700)
(1)
962
(2)
(764)
20
(42)

$

13,814

City of Glendale, Arizona
Budgetary Comparison Schedule
Housing Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

RESOURCES (INFLOWS):
Intergovernmental
Miscellaneous
Total revenues
Add: Transfers in
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Housing
Capital outlay
Total charges to appropriations
Budgetary fund balance, June 30, 2007

$

1,200

Final
$

1,200

Actual
Amounts
(budgetary basis)
$

674

Variance with
Final Budget
Positive
(Negative)
$

(526)

8,501
8,501
505
10,206

8,501
8,501
505
10,206

8,502
661
9,163
505
10,342

1
661
662
136

8,357
283
8,640

8,357
283
8,640

8,561
57
8,618

(204)
226
22

1,566

$

1,566

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Less: Transfers in.
Total revenues as reported on the statement of revenues, expenses, and changes in fund
net assets - non-major proprietary funds.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Change in compensated absences liability.
Accrued payroll.
Depreciation expense.
Capital outlay.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets - non-major proprietary funds.

108

1,724

$

158

$

10,342
(674)
(505)

$

9,163

$

8,618
21
357
(57)

$

8,939

City of Glendale, Arizona
Combining Statement of Net Assets
Internal Service Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Risk
Management
ASSETS
Current assets:
Equity in pooled
cash and investments
Inventories and prepaid items
Total current assets

$

Noncurrent assets:
Restricted cash and investments

3,885
75
3,960

Workers'
Compensation

$

5,119
5,119

Employee
Benefits

$

6,839
5
6,844

Total

$

15,843
80
15,923

-

150

-

150

3,960

5,269

6,844

16,073

LIABILITIES
Current liabilities:
Vouchers payable
Estimated claims payable
Total current liabilities

71
2,171
2,242

56
801
857

1,145
2,055
3,200

1,272
5,027
6,299

Noncurrent liabilities:
Estimated claims payable
Total noncurrent liabilities
Total liabilities

1,576
1,576
3,818

1,297
1,297
2,154

3,200

2,873
2,873
9,172

142

3,115

3,644

6,901

Total assets

NET ASSETS
Unrestricted
Total net assets

$

142

$

109

3,115

$

3,644

$

6,901

City of Glendale, Arizona
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Internal Service Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)
Risk
Management
Operating revenues:
Self-insurance premiums
Other
Total operating revenues

$

Operating expenses:
Insurance claims and premiums

2,760
30
2,790

Workers'
Compensation
$

2,488

Operating income (loss)

1,025
30
1,055

Employee
Benefits
$

1,145

17,963
16
17,979

Total
$

19,145

21,748
76
21,824

22,778

302

(90)

Nonoperating revenues:
Investments

196

248

305

749

Income (loss) before transfers

498

158

(861)

(205)

498

158

(861)

(205)

Change in net assets
Net assets - beginning
Net assets - ending

$

(356)
142

110

$

2,957
3,115

(1,166)

$

4,505
3,644

(954)

$

7,106
6,901

City of Glendale, Arizona
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Cash flows from operating activities:
Cash received from customers
Cash paid for insurance and in settlement
of claims

Risk
Management

Workers'
Compensation

$

$

2,790
(2,513)

1,055

Employee
Benefits
$

(983)

17,991

Total
$

21,836

(18,800)

(22,296)

Net cash provided by (used for)
operating activities

277

72

(809)

(460)

Cash flows from investing activities:
Interest received

195

248

305

748

Net increase (decrease) in cash during fiscal year

472

320

(504)

288

Cash and cash equivalents, July 1
Cash and cash equivalents, June 30

Reconciliation of operating income
to net cash provided by (used for)
operating activities:
Operating income (loss)
Adjustments to reconcile operating
income to net cash provided by
operations:
Change in inventories and
prepaid items
Change in vouchers payable
Change in claims payable
Net cash provided by (used for)
operating activities
Reconciliation of statement of net assets
cash and investments to the
statement of cash flows:
Per combined statement of net assets:
Equity in pooled cash and investments
Restricted cash and investments
Total cash and cash equivalents

$

3,413
3,885

$

$

302

$

(4)
69
(90)

4,949
5,269

(90)

$

7,343
6,839

$

$

(1,166)

$

26
136

12
(16)
361

$

277

$

72

$

$

3,885
3,885

$

5,119
150
5,269

$

$

111

$

$

(809)

6,839
6,839

15,705
15,993

(954)

8
79
407
$

$
$

(460)

15,843
150
15,993

City of Glendale, Arizona
Budgetary Comparison Schedule
Risk Management Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

3,227

Final
$

3,227

Actual
Amounts
(budgetary basis)
$

3,410

Variance with
Final Budget
Positive
(Negative)
$

183

RESOURCES (INFLOWS):
Self-insurance premiums
Investments
Other
Total revenues
Amounts available for appropriation

2,760
20
2,780
6,007

2,760
120
2,880
6,107

2,760
196
30
2,986
6,396

76
30
106
289

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Insurance and claims
Total charges to appropriations

4,010
4,010

4,010
4,010

2,582
2,582

1,428
1,428

Budgetary fund balance, June 30, 2007

$

1,997

$

2,097

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expense
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the combining statement of revenues, expenses, and changes in fund
net assets.

Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Change in estimated claims payable and prepaids.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets.

112

3,814

$

1,717

$

6,396
(3,410)

$

2,986

$

2,582
(94)

$

2,488

City of Glendale, Arizona
Budgetary Comparison Schedule
Workers' Compensation Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

4,358

Final
$

4,358

Actual
Amounts
(budgetary basis)
$

4,888

Variance with
Final Budget
Positive
(Negative)
$

530

RESOURCES (INFLOWS):
Self-insurance premiums
Investments
Other
Total revenues
Amounts available for appropriation

1,025
125
1,150
5,508

1,025
125
1,150
5,508

1,025
248
30
1,303
6,191

123
30
153
683

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Insurance and claims
Total charges to appropriations

1,407
1,407

1,407
1,407

1,009
1,009

398
398

Budgetary fund balance, June 30, 2007

$

4,101

$

4,101

$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenses, and changes in fund
net assets.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Change in estimated claims payable.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets.

113

5,182

$

1,081

$

6,191
(4,888)

$

1,303

$

1,009
136

$

1,145

City of Glendale, Arizona
Budgetary Comparison Schedule
Employee Benefits Fund
For the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)

Budgeted Amounts
Original
Budgetary fund balance, July 1, 2006

$

7,455

Final
$

7,455

Actual
Amounts
(budgetary basis)
$

6,198

RESOURCES (INFLOWS):
Self-insurance premiums
Investments
Other
Total revenues
Amounts available for appropriation

19,825
271
20,096
27,551

19,825
271
20,096
27,551

17,963
305
16
18,284
24,482

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Current:
Insurance and claims
Total charges to appropriations

19,600
19,600

19,600
19,600

18,784
18,784

Budgetary fund balance, June 30, 2007

$

7,951

$

7,951

$

5,698

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule.
The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue
for financial reporting purposes.
Total revenues as reported on the statement of revenues, expenses, and changes in fund
net assets.
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule.
Change in estimated claims payable liability.
Total expenses as reported in the statement of revenues, expenses, and changes in fund
net assets.

114

Variance with
Final Budget
Positive
(Negative)
$

(1,257)

(1,862)
34
16
(1,828)
(3,069)

816
816
$

(2,253)

$

24,482
(6,198)

$

18,284

$

18,784
361

$

19,145

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

OTHER
SUPPLEMENTARY
INFORMATION

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

This page left blank intentionally.

City of Glendale, Arizona
Federal Financial Data Schedule (PHA: AZ003)
For the Fiscal Year Ended June 30, 2007
(rounded to nearest dollar)

1 of 4

The following is the schedule of Federal Financial Data as required by the United States Department of Housing and Urban
Development under the Uniform Financial Reporting Standards Rule implementing requirements of 24 CFR, Part 5, Subpart H.

Line
Item
No.

111
114
100

115

121
122
126
126.1
126.2
120
132
143
143.1
144
150

161
162
163
164
165
166
167
160
180
190

Low Rent
Public
Housing

Account Description
ASSETS:
Current assets:
Cash:
Cash - unrestricted
Cash - tenant security deposits
Total cash

$

Accounts receivables:
Accounts receivable - PHA projects
Accounts receivable - HUD other projects
Accounts receivable - tenants - dwelling rents
Allowance for doubtful accounts - dwelling rents
Allowance for doubtful accounts - other
Total receivables, net of allowances for doubtful accounts
Current investments
Investments - restricted
Inventories
Allowance for obsolete inventories
Interprogram - due from
Total current assets
Non-current assets
Fixed assets:
Land
Buildings
Furniture, equipment & machinery - dwellings
Furniture, equipment & machinery - administration
Leasehold improvements
Accumulated depreciation
Construction in progress
Total fixed assets, net of accumulated depreciation
Total non-current assets
Total assets

$

562,383
36,512
598,895

Resident
Opportunity &
Supportive
Services

Housing Choice
Vouchers

Public Housing
Capital Fund
Program

$

$

$

-

253,226
253,226

-

Disaster
Voucher
Program

$

Other Federal
Program

-

$

-

Total

$

815,609
36,512
852,121

31,829
1,298
33,127

2,083
2,083

47,795
47,795

6,590
6,590

19,827
19,827

8,676
8,676

47,795
69,005
1,298
118,098

4,852
11,970
648,844

2,083

20,627
26,740
348,388

6,590

19,827

18,960
27,636

20,627
4,852
57,670
1,053,368

2,083

149,998
127,767
(151,905)
125,860
125,860
474,248

19,827

27,636

135,533
8,020,076
402,987
283,654
1,970,656
(5,689,312)
373,095
5,496,689
5,496,689
6,550,057

135,533
7,870,078
376,344
143,655
1,970,656
(5,521,297)
4,974,969
4,974,969
5,623,813

$

$

$

26,643
12,232
(16,110)
373,095
395,860
395,860
402,450

$

$

$

(continued)

City of Glendale, Arizona
Federal Financial Data Schedule (PHA: AZ003)
For the Fiscal Year Ended June 30, 2007
(rounded to nearest dollar)

Line
Item
No.

312
322
332
333
341
342
347
310

2 of 4

(continued)

Low Rent
Public
Housing

Account Description
LIABILITIES AND EQUITY/NET ASSETS
LIABILITIES:
Current liabilities
Accounts payable <= 90 days
Accrued compensated absences - current portion
Accounts payable - PHA projects
Accounts payable - other government
Tenant security deposits
Deferred revenues
Interprogram - due to
Total current liabilities

$

42,717
8,779
89,871
36,512
5,102
778
183,759

Resident
Opportunity &
Supportive
Services

Housing Choice
Vouchers

Public Housing
Capital Fund
Program

$

$

$

2,083
2,083

15,375
9,510
6,972
3,297
35,154

6,590
6,590

Disaster
Voucher
Program

$

18,182
18,182

Other Federal
Program

$

26,740
26,740

Total

$

58,092
18,289
6,972
89,871
36,512
5,102
57,670
272,508

116

353
354
350
300

Noncurrent liabilities
Noncurrent liabilities- other
Accrued compensated absences - noncurrent
Total noncurrent liabilities
Total liabilities

79,008
79,008
262,767

2,083

20,627
85,592
106,219
141,373

6,590

18,182

26,740

20,627
164,600
185,227
457,735

508
508.1
511
511.1
512.1
513
600

EQUITY/NET ASSETS:
Total contributed capital
Invested in capital assets, net of related debt
Total reserved fund balance
Restricted net assets
Unrestricted net assets
Total equity/net assets
Total liabilities and equity/net assets

4,974,969
386,077
5,361,046
5,623,813

2,083

125,860
207,015
332,875
474,248

395,860
395,860
402,450

1,645
1,645
19,827

896
896
27,636

5,496,689
595,633
6,092,322
6,550,057

$

$

$

$

$

$

$

(continued)

City of Glendale, Arizona
Federal Financial Data Schedule (PHA: AZ003)
For the Fiscal Year Ended June 30, 2007
(rounded to nearest dollar)

Line
Item
No.
703
704
705
706
706.1
715
720
700

117

911
914
915
916
924
931
932
933
938
941
942
943
945
961
962
963
964
969
970
971
973
974
900
1001
1002
1003
1010
1000

3 of 4

(continued)

Low Rent
Public
Housing

Account Description
REVENUE:
Net tenant rental revenue
Tenant revenue - other
Total tenant revenue

$

HUD PHA operating grants
Capital grants
Other revenue
Investment income - restricted
Total revenue
EXPENDITURES:
Administrative salaries
Compensated absences
Employee benefit contributions - administrative
Other operating - administrative
Tenant services - other
Water
Electricity
Gas
Other utilities expense
Ordinary maintenance and operations - labor
Ordinary maintenance and operations - materials & other
Ordinary maintenance and operations - contract costs
Employee benefit contributions - ordinary maintenance
Insurance premiums
Other general expenses
Payments in lieu of taxes
Bad debt - tenant rents
Total operating expenditures
Excess operating revenue over expenditures
Extraordinary maintenance
Housing assistance payments
Depreciation expense
Total expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Operating transfers from/to primary governmen
Total other financing sources (uses)
Excess (deficiency) of total revenues over (under) total expenditures

$

316,687
9,786
326,473

Resident
Opportunity &
Supportive
Services

Housing Choice
Vouchers

Public Housing
Capital Fund
Program

$

$

$

-

-

-

Disaster
Voucher
Program
$

Other Federal
Program
-

$

-

Total
$

316,687
9,786
326,473

372,917
39,087
738,477

73,888
73,888

7,582,296
203,465
7,785,761

37,891
110,760
148,651

39,032
39,032

27,510
27,510

8,133,534
110,760
242,552
8,813,319

439,005
22,337
112,258
91,333
2,310
48,000
15,258
1,087
22,491
213,873
69,646
110,755
53,442
22,815
888
22,594
64
1,248,156
(509,679)

73,888
73,888
-

492,840
24,198
137,971
69,644
17,290
4,946
41,263
788,152
6,997,609

10,009
6,186
16,195
132,456

100
100
38,932

200
200
27,310

931,845
46,535
250,229
171,286
76,198
48,000
15,258
1,087
22,491
213,873
93,122
110,755
53,442
27,761
42,151
22,594
64
2,126,691
6,686,628

15,176
357,453
1,620,785

73,888

6,895,655
9,468
7,693,275

6,866
23,061

37,287
37,387

26,414
26,614

15,176
6,959,356
373,787
9,475,010

21,696
492,000
513,696

-

-

-

-

(368,612)

$

-

$

92,486

(21,696)
(21,696)
$

103,894

$

1,645

$

896

21,696
(21,696)
492,000
492,000
$

(169,691)
(continued)

City of Glendale, Arizona
Federal Financial Data Schedule (PHA: AZ003)
For the Fiscal Year Ended June 30, 2007
(rounded to nearest dollar)

Line
Item
No.
1102
1103
1104
1113
1114
1115
1116
1120
1121

4 of 4

(continued)

Low Rent
Public
Housing

Account Description
MEMO ACCOUNT INFORMATION
Debt principal payments - enterprise funds
Beginning equity
Total prior period adjustments, equity transfers and correction of errors
Maximum annual contributions commitment (per ACC)
Prorata maximum annual contributions applicable to a period of
less than twelve months
Contingency reserve, ACC program reserve
Total annual contributions available
Unit months available
Number of unit months leased

$

5,465,741
263,917
1,858
1,834

Resident
Opportunity &
Supportive
Services

Housing Choice
Vouchers

Public Housing
Capital Fund
Program

$

$

$

-

354,405
(114,016)
7,582,296
7,582,296
11,917
11,917

555,883
(263,917)
-

Disaster
Voucher
Program
$

Other Federal
Program
45
45

$

31
31

Total
$

6,376,029
(114,016)
7,582,296
7,582,296
13,851
13,827

118

City of Glendale, Arizona
COMPREHENSIVE ANNUAL FINANCIAL REPORT
_________________________________________________________

STATISTICAL
SECTION

___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2007

This page left blank intentionally.

STATISTICAL SECTION

This part of the City of Glendale’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
Pages
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.

120-127

Revenue Capacity
These schedules contain information to help the reader assess the city’s local revenue source,
the property tax and sales tax.

128-133

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.

134-141

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.

142-143

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the city’s financial report relates to the services the city provides and the
activities it performs.

144-148

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 2002;
schedules presenting government-wide information include information beginning in that year.

119

City of Glendale, Arizona
Net Assets by Component
Last Five Fiscal Years
(amounts expressed in thousands)

Schedule 1

2007
Government activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities
net assets

$

446,828
180,303
44,573

2006

$

398,517
155,163
75,417

2005

$

372,778
179,434
40,641

2004

$

353,135
169,434
49,916

2003

$

259,802
127,393
132,801

671,704

629,097

592,853

572,485

519,996

Business-type activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total business-type activities
net assets

249,569
11,881
155,325

233,387
12,437
158,753

274,620
11,249
108,604

228,252
10,479
141,094

275,204
10,235
82,564

416,775

404,577

394,473

379,825

368,003

Primary government
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government
net assets

696,397
192,184
199,898

631,904
167,600
234,170

647,398
190,683
149,245

581,387
179,913
191,010

535,006
137,628
215,365

$ 1,088,479

$ 1,033,674

120

$

987,326

$

952,310

$

887,999

This page left blank intentionally.

121

City of Glendale, Arizona
Changes in Net Assets
Last Five Fiscal Years
(amounts expressed in thousands)
2007
Expenses
Governmental activities:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Other
Interest on long-term debt
Total governmental activities expenses
Business-type activities:
Water and sewer
Landfill
Sanitation
Housing
Total business-type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community services
Community environment
Street maintenance
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues

$

$

$

Business-type activities:
Charges for services:
Water and sewer
Landfill
Sanitation
Housing
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense

$

37,992
92,405
14,816
45,481
4,698
24,906
23,551
243,849

63,289
8,264
13,847
8,951
94,351
338,200

11,610
1,964
531
22,285
48
36,566
26,247
99,251

2006

$

$

$

33,329
75,277
13,995
40,275
4,125
22,720
3,020
16,883
209,624

55,607
7,950
13,257
9,466
86,280
295,904

10,726
1,375
516
20,121
31
31,973
6,406
71,148

2005

$

$

$

31,603
64,277
14,309
37,394
3,236
21,355
238
16,986
189,398

50,190
7,431
12,287
9,278
79,186
268,584

9,075
1,200
506
16,871
26,535
1,407
55,594

2004

$

$

$

24,003
56,176
13,883
33,914
3,446
20,425
142
15,838
167,827

45,628
7,164
12,294
8,858
73,944
241,771

9,092
1,043
148
16,942
3
24,503
3,429
55,160

2003

$

$

$

20,209
52,625
11,411
32,210
3,433
20,308
148
7,223
147,567

43,442
7,784
12,353
8,033
71,612
219,179

10,029
1,897
526
13,439
7
22,522
4,294
52,714

62,125
9,742
14,653
662
8,254
5,125
100,561
199,812

56,153
8,362
14,167
569
8,020
5,403
92,674
163,822

54,295
8,961
13,624
542
8,027
242
85,691
141,285

52,456
9,593
12,817
512
7,643
168
83,189
138,349

52,088
8,644
11,918
494
7,091
520
80,755
133,469

(144,598)
6,210
(138,388)

(138,476)
6,394
(132,082)

(133,804)
6,505
(127,299)

(112,667)
9,245
(103,422)

(94,853)
9,143
(85,710)

$

122

$

$

$

Schedule 2

2007
General revenues and other changes in net assets
Governmental activities:
Taxes:
Property taxes
Sales taxes
Unrestricted state shared sales tax
Unrestricted urban revenue sharing
(state shared income tax)
Auto in-lieu taxes
Investment earnings, unrestricted
Gain (loss) on disposal of capital assets
Miscellaneous
Capital contributions
Transfers
Total governmental activities
Business-type activities:
Investment earnings, unrestricted
Gain (loss) on disposal of capital assets
Loss on joint venture
Miscellaneous
Capital contributions
Transfers
Total business-type activities
Total primary government
Changes in net assets
Governmental activities
Business-type activities
Total primary government

$

$

$
$

23,085
97,825
23,037

2006

$

21,386
90,968
23,298

2005

$

19,422
77,166
20,271

2004

$

18,321
74,763
18,409

2003

$

16,739
63,832
17,113

27,518
10,044
5,557
202
301
(364)
187,205

22,909
10,444
4,395
348
272
700
174,720

20,115
9,414
2,654
225
275
4,794
(164)
154,172

19,731
8,978
315
9
349
24,614
(333)
165,156

23,288
8,619
(1,602)
445
299
27,042
(67)
155,708

5,381
103
140
364
5,988
193,193

3,466
844
100
(700)
3,710
178,430

2,065
202
5,712
164
8,143
162,315

1,115
(1,285)
2,414
333
2,577
167,733

(123)
(725)
(1,011)
7,241
67
5,449
161,157

42,607
12,198
54,805

$

$
$

123

36,244
10,104
46,348

$

$
$

20,368
14,648
35,016

$

$
$

52,489
11,822
64,311

$

$
$

60,855
14,592
75,447

City of Glendale, Arizona
Fund Balances - Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)

Schedule 3

2007
General fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, report in:
Special revenue funds
Capital projects funds
Total all other governmental funds

$

2006

$

$

10,500
50,880
61,380

$

45,029

34,369
68,932
$ 148,330

2005

$

$

10,287
62,166
72,453

$

42,910

30,584
64,106
$ 137,600

2004

$

$

9,377
56,661
66,038

$

39,014

34,867
61,765
$ 135,646

$

9,582
51,080
60,662

$

41,188

29,807
71,569
$ 142,564

2003

$
$

17,315
31,727
49,042

$

33,527

23,553
126,252
$ 183,332

2002

$
$

17,998
7,119
25,117

$

28,460

$

8,596
37,932
74,988

2001

$
$

13,232
24,716
37,948

$

19,473

$

2,585
28,369
50,427

2000

$
$

13,147
35,460
48,607

$

16,147

$

2,410
33,717
52,274

1999

$

1998

$

5,373
33,043
38,416

$
$

4,247
32,183
36,430

$

13,812

$

12,947

$

2,375
11,782
27,969

$

1,724
21,861
36,532

124

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125

City of Glendale, Arizona
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)
2007

Schedule 4

2006

2005

2004

2003

2002

2001

2000

1999

1998

Revenues
Taxes and special assessments
Licenses and permits
Intergovernmental
Local revenues

$

121,122

$

112,576

$

96,812

$

93,655

$

82,458

$

70,526

$

60,911

$

57,681

$

54,355

$

51,253

17,839

16,039

15,497

16,667

16,771

10,663

9,897

8,280

7,902

9,197

107,699

86,994

75,691

73,166

73,836

68,479

72,216

70,269

66,609

61,845

-

-

-

-

-

-

6,417

11,020

10,904

12,355

Charges for services

10,086

8,838

5,681

4,824

3,313

2,516

5,347

4,862

4,737

4,735

Fines and forfeitures

3,932

3,564

3,247

3,169

3,246

2,859

2,381

2,413

2,951

2,646

10,905

7,825

4,762

1,511

2,572

8,303

4,533

5,017

5,185

Miscellaneous

4,212

4,136

3,335

2,774

2,834

2,729

3,687

1,905

1,770

1,971

Total revenues

275,795

239,972

205,025

195,766

181,653

160,344

169,159

160,963

154,245

149,187

General government

24,524

21,868

20,892

17,274

20,321

20,064

21,583

17,122

15,340

14,666

Public safety

86,753

72,745

61,366

53,805

49,571

49,126

43,741

41,155

37,912

36,847

Public works

12,155

12,252

12,081

12,816

10,118

11,364

12,688

11,884

10,457

9,797

Community services

39,150

35,604

32,627

30,006

28,391

27,502

22,832

21,332

18,514

16,697
2,991

Investment income (loss)

(805)

Expenditures

126

Community environment

4,657

3,978

3,082

3,311

3,282

3,223

2,379

2,052

2,508

Street maintenance

13,372

11,609

10,534

9,811

9,994

11,493

10,320

9,541

9,516

9,109

Community housing

3,059

2,918

-

-

-

-

6,201

5,645

5,312

5,064

55

555

80

71

475

458

21

88

179,421

131,243

-

-

-

-

-

-

-

40

47,283

120,833

142,213

38,636

37,029

42,178

42,363

37,130

Principal

28,096

20,328

18,899

18,090

21,680

20,574

16,501

27,574

14,359

12,897

Interest

20,630

17,222

17,231

15,998

8,155

5,925

6,605

5,422

6,180

6,308

411,817

329,767

224,050

282,499

293,805

187,978

180,354

184,363

162,482

151,634

(136,022)

(89,795)

(19,025)

(86,733)

(112,152)

(27,634)

(11,195)

(23,400)

Miscellaneous
Contingencies
Capital outlay
Debt service:

Total expenditures
Excess of revenues
over (under) expenditures

(8,237)

(2,447)

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

Other financing sources (uses)
Discount on long-term debt

-

-

-

-

-

-

-

-

-

133,327

93,033

-

-

-

200

-

5,279

-

1,858

16,075

69,522

215,920

40,563

-

41,997

-

12,073

9,065

-

-

-

-

-

-

-

-

Premium on long-term debt issued

1,198

1,782

230

1,114

14,500

-

-

-

-

-

Proceeds from equipment disposal

850

3,166

1,342

8,198

2,802

82

-

-

-

-

Capital lease proceeds

668

-

-

428

11,266

-

-

9,139

-

1,290

24,945

(9,582)
20,014

-

-

-

-

Transfers in

15,800

32,943

12,851

15,936

15,015

15,814

18,218

18,476

Transfers out

(25,309)

(19,314)

(15,964)

(33,276)

(12,918)

(16,165)

(16,325)

(14,333)

(16,559)

(17,295)

135,679

98,164

17,483

57,585

244,421

36,083

(1,310)

57,896

1,659

16,402

Proceeds from loans
Long-term debt issued
Refunding bonds issued

(82)

Payment to refunded bonds
escrow agent

-

(21,262)

-

(4,533)

Total other financing
sources (uses)
Net change in fund balances

$

(343)

$

8,369

$

(1,542)

$

(29,148)

$

132,269

$

8,449

$

(12,505)

$

34,496

$

(6,578)

$

13,955

127

Debt service as a percentage
of noncapital expenditures

20.97%

18.91%

20.44%

21.09%

19.68%

17.74%

16.12%

23.21%

17.10%

16.77%

City of Glendale, Arizona
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)

Fiscal
Year
1997-98

Real
Estate
$

206,083

Improvements
$

475,031

Secured
Personal
$

2,688

Schedule 5

Utilities
Rails and
Wires

Unsecured
Personal
$

29,718

$

46,299

Less:
Tax Exempt
Property
$

62,626

Net
Assessed
Value (1)
$

Total
Direct
Tax Rate

697,193

1.83

Estimated
Actual
Value(2)
$

Assessed Value
as a Percentage
Of Actual Value(3)

5,824,504

13.045

128

1998-99

215,309

485,708

2,974

29,627

44,837

61,065

717,390

1.78

5,931,081

13.125

1999-00

223,785

548,672

2,748

30,259

45,209

62,981

787,692

1.73

6,526,885

13.033

2000-01

233,712

619,842

2,609

39,388

46,580

65,228

876,903

1.72

7,288,261

12.927

2001-02

253,580

686,608

2,609

43,470

51,547

83,695

954,119

1.72

8,010,100

12.956

2002-03

258,224

733,234

2,383

39,629

54,189

98,565

989,094

1.72

8,331,442

13.055

2003-04

298,152

820,414

2,113

35,832

58,517

135,011

1,080,017

1.72

9,391,120

12.938

2004-05

342,689

893,850

1,661

43,584

56,582

193,816

1,144,550

1.72

10,065,003

13.297

2005-06

368,181

989,418

1,450

45,025

58,101

192,607

1,269,568

1.72

11,296,734

12.943

2006-07

463,560

1,033,129

1,373

45,756

58,111

230,940

1,370,989

1.72

12,107,926

13.230

Source: Maricopa County Assessor's Office
Notes:
(1) Fiscal year 1996-97 gross valuation and exemptions increased due to a change in methodology by Maricopa County. Beginning that year, items such as
churches and universities were included in both the gross valuation and the exemption amounts. The net effect of this change to the assessed value is zero.
(2) Assessed values are established each year by the County. The tax rate is $100 per assessed value (reference note I. L, page 42).
(3) The assessed value as a percentage of actual value does not include tax exempt property.

City of Glendale, Arizona
Direct and Overlapping Governments Property Tax Rates
Last Ten Fiscal Years
Per $100 Assessed Valuation

Schedule 6

Overlapping Rates*

Fiscal
Year
1997-98

Basic
Rate
$

0.49

General
Obligation
Debt Service
$

1.34

Glendale
Elementary
and High
School
Districts

City of
Glendale
$

1.83

$

16.62

Peoria
Unified
School
Districts
$

14.75

Deer Valley
Unified
School
Districts
$

15.01

129

1998-99

0.44

1.34

1.78

17.15

15.20

15.03

1999-00

0.39

1.34

1.73

16.72

14.86

14.33

2000-01

0.38

1.34

1.72

15.81

14.55

13.12

2001-02

0.36

1.36

1.72

15.36

13.73

13.12

2002-03

0.35

1.37

1.72

15.51

13.69

12.59

2003-04

0.34

1.38

1.72

14.79

13.59

12.06

2004-05

0.33

1.39

1.72

14.88

13.22

11.78

2005-06

0.31

1.41

1.72

20.96

18.45

16.98

2006-07

0.29

1.43

1.72

19.84

17.26

15.34

Source: Maricopa County 2006 Tax Rates
Note: The City rounds the rates to two digits from the four presented by the county.
* Overlapping rates are those of local and county governments that apply to property owners within the City of Glendale. Not all
overlapping rates apply to all City of Glendale property owners (e.g., the rates for special districts apply only to the proportion
of the government's property owners whose property is located within the geographic boundaries of the special district).

City of Glendale, Arizona
Principal Property Taxpayers
Current Year and Nine Years Ago
June 30, 2007
(amounts expressed in thousands)

Schedule 7

Tax Year 2007

130

Taxpayer
Arizona Public Service Company
Qwest Corporation (US West)
New River Associates
Wal-Mart Stores, Inc.
VHS of Arrowhead, Inc.
Toys DC South LLC
Lexington Glendale
Southwest Gas Corporation
51 Bells Limited Partnership
Coyote Center Development LLC
Price Reit
Sanderson Ford
Burlington Northern Sante Fe
Honeywell Inc.
PDSI Inc.
May Department Stores
Total principal taxpayers

Rank
1
2
3
4
5
6
7
8
9
10

Assessed
Valuation
$
16,404
12,758
10,147
10,125
6,983
6,392
6,326
6,259
4,916
4,887

$

85,197

Tax Year 1998

Percentage of
Total City Taxable
Assessed Value
1.20 %
0.93
0.74
0.74
0.51
0.47
0.46
0.46
0.36
0.36

6.23 %

Rank
1
2
3

Assessed
Valuation
$
12,604
11,405
9,979

Percentage of
Total City Taxable
Assessed Value
1.81 %
1.64
1.43

4

4,362

0.63

5
6
7
8
9
10

3,475
3,216
2,890
2,356
2,334
2,294

0.50
0.46
0.41
0.34
0.33
0.33

$

54,915

Source: Maricopa County Treasurer's Office
Note: The Salt River Project Agriculture Improvement and Power District assessed valuation is not reflected in the total assessed
valuation of the City of Glendale. The Project is subject to "voluntary contribution" in lieu of ad valorem taxation.

7.88 %

City of Glendale, Arizona
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)

Schedule 8

Collected within the
Fiscal Year of Levy

Total Collections to Date
Collections

Fiscal
Year
1997-98

Total
Tax Levy(1)
$

12,051

Amount
$

Percent of
Levy

11,661

96.76 %

in Subsequent
Years(2)
$

387

Amount
$

12,048

Percent of
Levy
99.98 %

131

1998-99

12,131

11,764

96.98

367

12,131

100.00

1999-00

12,978

12,507

96.37

471

12,978

100.00

2000-01

14,227

13,833

97.23

394

14,227

100.00

2001-02

16,136

15,529

96.24

588

16,117

99.88

2002-03

16,743

16,289

97.29

443

16,732

99.93

2003-04

18,468

17,899

96.92

558

18,457

99.94

2004-05

19,534

19,011

97.32

428

19,439

99.51

2005-06

21,566

20,980

97.28

517

21,497

99.68

2006-07

23,423

22,721

97.00

-

22,721

97.00

Source: Maricopa County Treasurer's Office
(1) Total levy includes only secured property.
(2) Includes collections and resolutions.

City of Glendale, Arizona
City Transaction Privilege Taxes (Sales Tax) by Category
Last Ten Fiscal Years
(amounts expressed in thousands)
2007
Retail sales
Contracting

$

Rentals

50,733

2006
$

48,743

Schedule 9

2005
$

41,883

2004
$

41,262

2003
$

36,639

2002
$

30,858

2001
$

24,449

2000
$

24,305

1999
$

16,986

1998
$

13,320

10,483

9,729

7,716

7,709

5,638

3,659

4,269

4,656

4,899

4,225

9,895

8,897

8,228

7,752

7,164

5,740

4,990

4,660

3,650

2,832
1,212

Utilities

4,724

4,168

1,967

2,606

1,765

1,482

1,297

1,260

1,224

Telecom/cable TV

5,914

5,300

5,179

4,290

2,437

1,490

1,259

1,017

915

780

Restaurant/bar

9,335

8,163

7,031

6,676

6,132

5,477

4,935

4,729

4,366

3,923

Amusement

3,288

1,934

1,043

1,058

601

539

424

493

204

-

Other

3,453

4,034

4,119

3,410

3,456

3,335

2,768

2,467

7,763

10,149

Total
% Growth by year
Retail sales
Contracting

$

97,825

$

4.1 %
7.8

90,968

16.4 %
26.1

132

Rentals

11.2

8.1

Utilities

13.3

111.9

Telecom/cable TV

11.6

Restaurant/bar
Amusement
Other
Total

$

77,166

1.5 %
0.1

$

74,763

12.6 %
36.7

$

63,832

18.7 %
54.1

$

52,580

26.2 %

$

44,391

0.6 %

(14.3)

(8.3)

$

43,587

$

40,007

27.5 %

$

36,441

43.1 %
(5.0)

16.0

100.0 %
100.0

6.1

8.2

24.8

15.0

7.1

27.7

28.9

100.0

(24.5)

47.6

19.1

14.3

2.9

2.9

1.0

100.0

2.3

20.7

76.0

63.6

18.3

23.8

11.1

17.3

100.0

14.4

16.1

5.3

8.9

12.0

11.0

4.4

8.3

11.3

100.0

70.0

85.4

(1.4)

76.0

11.5

27.1

(14.0)

141.7

100.0

100.0

(14.5)

(2.1)

20.8

(1.3)

3.6

20.5

12.2

(68.2)

(23.5)

100.0

7.5 %

Source: City of Glendale Tax and License Division

17.9 %

3.2 %

17.1 %

21.4 %

18.4 %

1.8 %

8.9 %

9.8 %

100.0 %

This page left blank intentionally.

133

City of Glendale, Arizona

Schedule 10

Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands)

(1)

Fiscal

General
Obligation

Special
Assignment

Year

Bonds

Bonds

1997-98

$

50,740

$

Government Activities
Street and
Highway
Municipal
Revenue
Property
Bonds

21,858

$

26,585

Corporation
$

13,040

$

Capital

Notes

Leases

Payable

2,056

$

3,841

134

1998-99

43,025

20,733

23,230

12,265

1,573

1,852

1999-00

55,055

19,278

28,380

12,000

10,198

6,693

2000-01

46,917

17,621

24,310

11,215

8,865

5,754

2001-02

82,637

16,247

24,310

11,215

4,498

4,340

2002-03

127,104

12,036

20,030

170,590

14,971

20,193

2003-04

153,688

109

22,730

180,230

14,704

17,098

2004-05

157,065

75

22,455

177,950

13,704

18,876

2005-06

175,155

39

35,940

223,988

12,875

15,689

2006-07

224,234

-

34,065

293,530

12,492

6,279

Fiscal

Water
Sewer

Landfill

Business Activities
Water
Sewer
Revenue

Year

G.O. Bonds

G.O. Bonds

Bonds

1997-98

$

11,835

$

-

$

17,145

$

Notes

Capital

Total
Primary

Per

Payable

Leases

Government

Capita(2)

5,250

$

3,713

$

156,063

$

792

135

1998-99

10,000

-

13,305

4,569

2,779

133,331

644

1999-00

8,175

1,460

63,560

3,866

15,952

224,617

1,055

2000-01

6,165

1,333

56,705

3,357

13,783

196,025

875

2001-02

6,165

1,333

56,705

6,358

15,291

229,099

1,005

2002-03

17,845

1,186

49,280

14,831

12,838

460,904

1,995

2003-04

15,825

1,032

121,470

14,433

11,007

552,326

2,370

2004-05

13,135

870

115,140

13,660

2,676

535,606

2,270

2005-06

12,375

700

190,020

12,285

2,613

681,679

2,806

2006-07

11,595

520

229,130

10,862

2,349

825,056

3,354

Note: Details of the outstanding debt can be found in the notes to the financial statements.
(1) Does not include other long-term obligations such as compensated absences, unamortized premiums, claims/judgments, arbitrage, post-closure costs, etc.
(2) See schedule 15 for personal income and population data.

City of Glendale, Arizona
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands)

General
Obligation
Bonds(1)

Fiscal
Year
1997-98

$

62,575

Less: Amounts
Available in
Debt Service
Funds(2)
$

10,892

Schedule 11

Total
$

Percentage of
Net Assessed
Value of Property

Per
Capita

51,683

7.41 %

262.35

1998-99

53,025

11,611

41,414

5.77

200.07

1999-00

64,690

12,416

52,274

6.63

245.42

2000-01

54,415

13,241

41,174

4.69

183.81

2001-02

90,135

16,281

73,854

7.74

323.92

2002-03

146,135

17,768

128,367

12.98

555.70

2003-04

170,545

18,526

152,019

14.08

652.44

2004-05

171,070

19,472

151,598

13.25

642.36

2005-06

188,230

22,507

165,723

13.05

679.19

2006-07

236,349

24,600

211,749

15.45

859.44

Note:

Principal and interest expenditures for 1999-00 include a current refunding transaction.
(1) These figures include general obligation water & sewer and general obligation landfill bonds.
(2) These figures include the current general obligation bond liability plus the general obligation
debt service fund balance at June 30.

136

City of Glendale, Arizona
Net Direct and Overlapping Governmental Activities Debt
June 30, 2007
(amounts expressed in thousands)
Percentage
Applicable
to Glendale

Net Debt
Outstanding

Jurisdiction
Peoria Unified School
District No. 11

Schedule 12

$

248,369

24.6698 %

Amount
Applicable
to Glendale
$

61,272

Glendale Elementary School
District No. 40

28,560

98.9015

28,246

Deer Valley Unified School
District No. 97

189,500

20.9545

39,709

Alhambra Elementary School
District No. 68

30,125

18.2639

5,502

Glendale Union High School
District No. 205

116,090

22.1341

25,695

-

3.7774

-

Maricopa County Community College District

461,645

3.7774

17,438

Phoenix Union High School
District No. 210

319,995

1.4275

4,568

Pendergast Elementary School
District No. 92

95,000

13.3309

12,664

Tolleson Union High School
District No. 214

64,355

4.4081

2,837

109,150

2.7613

3,014

Dysart Unified School
District No. 89

95,255

0.0387

37

Agua Fria Union High School
District No. 216

60,555

0.2625

159

Litchfield Elementary School
District No. 79

21,525

0.3987

86

Maricopa County

Washington Elementary School
District No. 6

Total Overlapping Debt

1,840,124

201,227

City of Glendale Debt(1)

212,324

212,324

Total

$

2,052,448

Source: Maricopa County - Abstract by tax authority and class,
Abstract by tax area code and Annual Report of Bonded Indebtedness.
(1) Does not include landfill nor water and sewer general obligation debt.

137

$

413,551

City of Glendale, Arizona
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)

Schedule 13
Legal Debt Margin Calculation for Fiscal Year 2007

6% Type Bonds

Assessed value

$

Debt limit (6% of assessed value)

82,259

Debt applicable to limit: General obligation bonds

84,665

Less: Amount set aside for repayment of general obligation debt

(22,632)

Total net debt applicable to limit

62,033

Legal debt margin
1998
Debt limit

$

41,832

1999
$

47,262

2000
$

47,262

2001
$

52,614

2002
$

57,247

$
2003

$

59,346

1,370,989

2004
$

64,801

2005
$

68,673

2006
$

76,174

20,226
2007

$

82,259

Total net debt
applicable to limit
Legal debt margin

21,929
$

19,903

19,190
$

28,072

26,107
$

21,155

21,602
$

31,012

30,167
$

27,080

47,813
$

11,533

49,399
$

15,402

51,682
$

16,991

52,539
$

23,635

62,033
$

20,226

138

Total net debt applicable to the
limit as a percentage of debt limit

52.42%

40.60%

55.24%

41.06%

20% Type Bonds

52.70%

80.57%

76.23%

75.26%

68.97%

Assessed value

75.41%

$

Debt limit (20% of assessed value)

274,198

Debt applicable to limit: General obligation bonds

151,684

Less: Amount set aside for repayment of general obligation debt

(1,968)

Total net debt applicable to limit

149,716

Legal debt margin
1998
Debt limit

$

139,439

1999
$

157,538

2000
$

157,538

2001
$

175,381

2002
$

190,824

$
2003

$

197,818

1,370,989

2004
$

216,003

2005
$

228,910

2006
$

253,914

124,482
2007

$

274,198

Total net debt
applicable to limit
Legal debt margin

37,979
$

101,460

31,774
$

125,764

36,307
$

121,231

29,847
$

145,534

43,972
$

146,852

80,844
$

116,974

101,153
$

114,850

99,340
$

129,570

113,184
$

140,730

149,716
$

124,482

Total net debt applicable to the
limit as a percentage of debt limit

27.24%

20.17%

23.05%

17.02%

23.04%

40.87%

46.83%

43.40%

44.58%

54.60%

This page left blank intentionally.

139

City of Glendale, Arizona
Pledged-Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)

Schedule 14

Fiscal

Utility
Service

Less:
Operating

Year

Charges(1)

Expenses(2)

1997-98

$

50,249

$

21,004

Water and Sewer Revenue Bonds
Net
Debt Service
Available
Principal(3)

Revenue
$

29,245

$

5,635

Interest(3)
$

Coverage

1,153

4.31

140

1998-99

49,843

22,429

27,414

4,521

923

5.04

1999-00

49,243

24,071

25,172

3,426

753

6.02

2000-01

52,482

28,334

24,148

7,558

3,387

2.21

2001-02

50,549

27,620

22,929

8,463

3,022

2.00

2002-03

51,922

30,537

21,385

9,116

2,745

1.80

2003-04

53,209

31,445

21,764

7,102

4,760

1.83

2004-05

56,144

32,100

24,044

6,495

6,168

1.90

2005-06

59,426

35,916

23,510

6,813

7,143

1.68

2006-07

66,646

40,825

25,821

6,303

9,280

1.66

Municipal Property Corporation Bonds

Special Assessment Bonds
Fiscal

Special
Assessment

1997-98

Debt Service

Revenues

Year
$

3,860

Excise
Tax

Principal
$

(4)

1,068

(5)

Interest
$

Coverage

1,370

$

1.58

Debt Service
Principal

Revenue
$

66,417

$

1,450

Interest
$

Coverage

1,008

27.02

141

1998-99

2,705

1,125

1,299

1.12

73,572

775

907

43.74

1999-00

2,390

1,455

1,216

(0.11)

79,850

615

431

76.34

2000-01

2,675

1,657

1,115

(0.03)

83,739

785

548

62.82

2001-02

2,267

1,374

1,017

(0.05)

85,322

880

515

61.16

2002-03

1,627

4,211

847

(0.68)

88,071

1,240

1,510

32.03

2003-04

12,395

11,927

692

0.98

94,277

2,280

8,530

8.72

2004-05

29

34

5

(0.26)

98,143

1,885

9,017

9.00

2005-06

29

36

3

(0.26)

114,066

2,785

8,871

9.79

2006-07

12

39

1

(0.70)

123,602

2,715

10,343

9.47

Source: City of Glendale Finance Department
Notes:
(1) Operating revenues and nonoperating revenues excluding non-cash contributions, gains and losses.
(2) Excluding depreciation.
(3) Principal and interest amounts include debt service on the note payable to the Waste Infrastructure Financing Authority of Arizona for the 00-01 loan.
(4) The 03-04 principal payments include the refunding of Improvement District 57 and 59 bonds issued August 1992.
(5) Special assessment principal and interest for 95-96, 99-00, 00-01, 01-02, 02-03, 04-05, 05-06, 06-07 were covered by accumulated fund balance in the debt service fund.

City of Glendale, Arizona
Demographic and Economical Statistics
Last Ten Fiscal Years
(amounts expressed in thousands)

Fiscal
Year

City of
Glendale
Population(2)

Maricopa
County
Population

1997-98

197

2,909

1998-99

207

3,005

1999-00

213

2000-01

Schedule 15

Personal Income
(thousands
of dollars) (1)

Per Capita
Personal
Income(1)

$

$

75,639,499

Unemployment
Rate

26,002

2.6

80,924,901

26,930

2.9

3,096

89,771,608

28,993

2.3

224

3,196

92,913,124

29,068

3.7

2001-02

228

3,295

95,618,598

29,020

5.0

2002-03

231

3,397

98,401,099

28,968

5.3

2003-04

233

3,524

101,264,571

28,734

4.4

2004-05

236

3,524

104,211,370

29,570

3.9

2005-06

244

3,764

115,863,448

30,782

3.9

2006-07

246

3,879

131,949,430

(3)

34,016

(4)

3.1

Source: Maricopa County Finance Department
Arizona Department of Economic Security, Research Administration, Population Statistics Unit
Maricopa County FY 2006-07 Annual Budget Report
Standard & Poor's Ratings Direct Analysis of Maricopa County, Arizona, publication date Aug 21, 2007
Note: (1) Personal Income and Per Capita Income figures are for Maricopa County. City of Glendale
is one of several Valley cities that comprise Maricopa County, including Phoenix, Mesa and Scottsdale.
(2) Estimates.
(3) Estimate based on forecasted increases for Maricopa County of 5% and 4.1% for 2007 and 2006 respectively
and Maricopa County Personal Income for 2005 of $120,716,738,000.
(4) Calculation based on Personal Income divided by Population.

142

%

City of Glendale, Arizona
Principal Employers
Current Year and Nine Years Ago

Schedule 16

2007

Employer
Luke Air Force Base
Arrowhead Towne Center
Banner Thunderbird Health System
City of Glendale
Glendale Union High School District
Glendale Elementary School District
Deer Valley Unified School District
Glendale Community College
Schuck and Sons
AAA
Honeywell, Inc.
U.S. Postal Service
Peoria Unified School District
Total

Employees
8,400
2,500
2,500
2,100
1,862
1,684
1,432
1,220
1,150
808

23,656

Source: City of Glendale

143

Rank
1
2
3
4
5
6
7
8
9
10

1998
Percentage
of Total City
Employment
4.50
%
1.34
1.34
1.12
1.00
0.90
0.77
0.65
0.62
0.43

12.67

%

Employees
8,346

Rank
1

Percentage
of Total City
Employment
7.86
%

1,100
1,337
1,380
1,300

6
4
3
5

1.04
1.26
1.30
1.22

820
843

8
7

0.77
0.79

2,600
780
575

2
9
10

2.45
0.73
0.54

19,081

17.98

%

City of Glendale, Arizona
Full-time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years

Function/Program

144

General government
Management services
Finance
Planning
Building
Legal
Other
Police
Fire
Homeland security
Community service
Parks and recreation
Library
Public works
Engineering
Transportation
Utilities
Total

Source: City Budget Office

2007

2006

35.00
86.75
28.50
51.75
78.00
105.50
543.50
251.50
7.00
87.25
98.75
88.76
271.00
45.00
88.25
165.00
2,031.51

34.00
86.75
26.50
55.75
67.00
101.00
506.50
237.50
84.25
89.75
87.76
266.00
46.00
81.25
146.00
1,916.01

2005

32.00
85.75
26.15
57.75
67.00
94.50
507.50
216.00
82.75
86.75
87.76
266.00
45.00
80.25
140.00
1,875.16

Schedule 17

Full-time Equivalent Employees as of June 30
2004
2003
2002
2001

34.00
84.75
26.15
44.75
61.00
93.50
473.50
196.00
75.25
80.40
87.75
267.00
44.00
80.25
132.00
1,780.30

32.50
84.75
27.15
40.75
58.00
93.50
455.50
195.00
75.25
79.40
87.75
270.00
44.00
78.25
132.00
1,753.80

33.50
82.75
27.15
32.50
50.00
93.50
455.50
190.00
73.75
78.40
87.75
272.00
43.00
65.25
132.00
1,717.05

31.50
83.50
23.65
29.50
47.00
97.50
421.50
167.50
67.00
73.40
86.75
268.00
42.00
65.25
125.00
1,629.05

2000

1999

1998

30.50
82.00
21.65
28.50
47.00
89.00
397.00
167.50
61.00
63.90
84.50
228.00
41.00
60.25
124.00
1,525.80

41.00
65.00
33.15
27.50
39.00
69.50
380.00
163.50
50.00
60.65
84.25
228.00
41.00
54.25
127.00
1,463.80

40.00
63.00
33.65
26.50
39.00
67.50
365.00
162.50
50.00
60.00
60.25
220.00
40.00
53.25
119.00
1,399.65

City of Glendale, Arizona
Operating Indicators by Function/Program
Last Ten Fiscal Years

Function/Program

145

Police
Calls for service
Bookings
Criminal offense reports
Fire
EMS calls
Fire calls
Refuse collection (3)
Residential curb service (tons per year)
Commercial container service (tons per year)
Airport
Departures/arrivals (2)
General government
Building permits
Library
Volumes in collection
Transit
Dial-A-Ride passengers

Schedule 18

Fiscal Year
2003
2002

2007

2006

2005

2004

2001

2000

1999

1998

154,176
12,119
35,169

148,633
8,640
34,271

158,507
8,138
33,578

161,722
8,057
34,847

154,374
7,980
33,956

153,691
8,781
34,224

144,183
7,744
33,102

137,809
773
30,984

133,124
10,062
27,415

130,033
7,882
27,508

25,819
4,322

22,284
5,886

24,025
3,335

23,126
3,379

21,372
3,379

20,722
3,110

19,272
2,958

18,208
2,755

17,135
2,695

60,914
51,425

63,521
49,517

57,942
44,441

56,902
44,681

55,718
48,583

49,747
45,798

-

-

-

-

152,194

143,798

108,887

118,140

88,449

118,703

110,631

112,570

133,220

115,056

6,310

7,888

7,079

6,330

6,299

5,428

7,090

7,925

8,561

8,942

557,342

596,266

620,130

601,440

600,477

606,676

544,467

562,532

342,042

311,870

84,132

89,055

87,831

86,132

81,768

76,622

66,527

69,081

70,032

67,626

(1)
(1)

18,977
2,642

(4)
(4)

Source: Various city departments
Note: Water and sewer statistics are contained in Schedule 20 and 21.
(1) Fire department figures are on a calendar year, January 1, 2006 through November 3, 2006.
(2) Departures/arrivals are based on calendar year prior to 2005-2006. 2005 figures are through October 2005.
(3) Sanitation figures were only available from 2000-2001 through present.
(4) Amounts based on calendar year; January 1, 2005, through September 30, 2005.

City of Glendale, Arizona
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years

Function/Program

146

Police
Stations
Patrol vehicles
Fire stations
General government
City square miles
Landfill
Landfill capacity - south cell
Landfill capacity used - south cell
Other public works
Streets (miles)
Parks and recreation
Number of parks/retention basins
Acres of parks
Transit
Dial-A-Ride minibuses

Source: Various city departments

Schedule 19

2007

2006

2005

2004

Fiscal Year
2003
2002

3
157
9

3
156
9

3
156
9

3
151
8

3
156
8

57

57

57

57

22,594
17,358

22,594
16,790

22,594
16,328

736

733

95
2,125
22

2001

2000

1999

1998

3
150
7

3
92
7

3
101
7

3
103
7

3
108
7

57

56

55

55

55

54

22,594
15,910

22,594
15,408

22,594
14,669

16,351
14,060

16,351
13,450

16,351
12,865

16,351
12,342

709

702

702

692

660

650

630

625

92
2,058

92
2,052

93
1,998

89
1,984

89
1,984

89
1,984

87
1,844

88
1,845

74
1,682

25

25

22

19

17

21

17

16

15

City of Glendale, Arizona
Miscellaneous Water and Sewer Rate Statistics
June 30, 2007

Schedule 20

WATER RATES PER METER SIZE
Commercial and Residential Monthly Base Charge
Inside
Outside
City
City

Meter Size
(inch)
$

5/8
3/4
1

8.47
10.67
14.99

$

11.01
13.87
19.49

30.58
54.90
91.51
163.09
323.19
480.06
1,142.89

1 1/2
2
3
4
6
8
12

39.75
71.37
118.96
212.02
420.15
624.08
N/A

Residential and 3/4 Commercial

Commercial 1 inch Meter Size

Meter Size

and Greater (1)

Gallons per Month

All Year
Inside
Outside
City
City

All Year
Inside
Outside
City
City

0 - 6,000
7,000 - 15,000
16,000 - 30,000
over 31,000

$ 1.40
1.75
2.45
3.43

$ 1.55
1.55
1.55
1.55

$ 1.82
2.28
3.20
4.48

$ 2.02
2.02
2.02
2.02

Summer Excess Rate
Inside
Outside
City
City
$ 2.73
2.73
2.73
2.73

SEWER SERVICE RATES

Type of Service

Inside
City

Single Family Dwelling Unit
$ 26.80
Office Building
39.20
Apartment - Average 5 units
67.38
Apartment - Average 35 units
397.51
Retail/Wholesale
52.23
(1) Per 1,000 gallons
SOURCE: City of Glendale Finance Department

147

Outside
City
$ 29.82
N/A
69.65
65.81
N/A

$ 3.55
3.55
3.55
3.55

City of Glendale, Arizona
Miscellaneous Water and Sewer Statistics
June 30, 2007

Schedule 21

HISTORICAL AVERAGE NUMBER OF WATER ACCOUNTS
Fiscal Year
Ending June 30
1998
1999

Residential

(3)

Commercial

(1)

(2)

Total

47,363
49,556

4,343
4,544

51,706
54,100

50,324

4,590

54,914

2001

51,169

4,649

55,818

2002

52,736

5,197

57,933

2003

53,654

5,431

59,085

2004

54,349

4,361

58,710

2005

55,139

4,491

59,630

2006
2007

55,354
55,395

4,650
5,305

60,004
60,700

2000

(1) Total meters in the system being read monthly. Slightly lower figure for active accounts due to vacant properties.
(2) Includes multi-family housing facilities.
(3) As of April 3, 2000.
SOURCE: City of Glendale Finance Department.

WATER DELIVERIES
Acre Feet
Calendar Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Residential (1)
31,294
30,477
32,779
35,135
34,667
36,044
34,348
34,427
33,567
34,660

Commercial
4,562
4,491
4,739
9,413
8,865
8,865
5,342
8,382
8,282
10,951

Other
8,667
6,344
8,942
893
722
1,031
1,042
1,211
1,298
3,730

Total
44,523
41,312
46,460
45,441
44,254
45,940
40,732
44,020
43,147
49,341

(1) Residential includes both single and multi-family housing.
SOURCE: Annual Report of Arizona Department of Water Resources.

SEWERAGE ACCOUNTS BILLED AND SEWAGE TREATED
Fiscal Year
Ending June 30
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

No. of Sewer

Multi-City Plant (2)

Arrowhead

West (1)

Pyramid Peak

Accounts Billed
45,813
47,064
49,021
50,564
52,688
55,506
55,239
55,670
55,995
56,737

(MGD) Actual
12.3
10.4
10.9
11.7
11.4
11.9
10.8
7.9
8.2
8.2

(MGD)
1.9
2.2
2.7
2.8
2.8
2.8
3.0
3.0
3.0
4.5

(MGD)

(MGD)
18.5
15.6
16.4
17.6
17.1
17.9
16.2
16.2
28.6
32.4

(1) Began operations in 2000.
(2) SROG - Sub Regional Operating Group
SOURCE: City of Glendale Finance and Utilities Departments.

148

4.3
4.3
4.3
7.0
7.0
8.5
9.2

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City of Glendale
Finance Department
5850 West Glendale Avenue, Suite 302
Glendale, Arizona 85301
(623) 930-2480