City of Glendale, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 This page left blank intentionally. City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ INTRODUCTORY SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. City of Glendale, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 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 Facilities & Financial Management Kenneth A. Reedy Deputy City Manager - Public Works Gloria Santiago-Espino Deputy City Manager Community Services Horatio Skeete Deputy City Manager Administrative Services Deborah Mazoyer Interim Deputy City Manager Community Development Prepared by the Finance Department Diane Goke Deputy Finance Director i This page left blank intentionally. ii City of Glendale, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Title Page ......................................................................................................................................... i Table of Contents ...........................................................................................................................iii Letter of Transmittal ....................................................................................................................... 1 GFOA Certificate of Achievement.................................................................................................. 5 Glendale, Arizona and Neighboring Communities ......................................................................... 6 Glendale City Officials ................................................................................................................... 7 Glendale Council District Boundaries ............................................................................................. 8 Organization Chart .......................................................................................................................... 9 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 ..................................................................................................... 36 C. REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule – General Fund ........................................................................ 75 Budgetary Comparison Schedule – Transportation Fund.............................................................. 77 Notes to Required Supplementary Information ............................................................................. 78 iii City of Glendale, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 TABLE OF CONTENTS Page D. COMBINING STATEMENTS Other Major Governmental Funds Budgetary Comparison Schedule – General Obligation Debt Service Fund ............................. 79 Non-Major Governmental Funds Combining Balance Sheet.......................................................................................................... 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................. 86 Budgetary Comparison Schedules Community Development Block Grants Fund ....................................................................... 88 Highway Users Gas Tax Fund ............................................................................................... 89 Development Impact Fees Fund............................................................................................. 90 Police and Fire Sales Tax Fund .............................................................................................. 91 Other Special Revenue Fund .................................................................................................. 92 Highway Users Debt Service Fund ........................................................................................ 93 Municipal Property Corporation Debt Service Fund ............................................................ 94 Transportation Debt Service Fund ......................................................................................... 95 Municipal Property Corporation Construction Fund.............................................................. 96 Streets Construction Fund ...................................................................................................... 97 Fire and Police Construction Fund ......................................................................................... 98 Parks Bond Construction Fund .............................................................................................. 99 Other Construction Fund ...................................................................................................... 100 Cemetery Perpetual Care Fund ............................................................................................ 101 Non-Major Proprietary Funds – Business-Type Activities Combining Statement of Net Assets ........................................................................................ 104 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ................... 105 Combining Statement of Cash Flows ...................................................................................... 106 Budgetary Comparison Schedules Water and Sewer Fund (a Major Fund) ................................................................................ 108 Landfill Fund ....................................................................................................................... 110 Sanitation Fund .................................................................................................................... 111 Housing Fund ....................................................................................................................... 112 Internal Service Funds Combining Statement of Net Assets ........................................................................................ 113 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ................... 114 Combining Statement of Cash Flows ...................................................................................... 115 Budgetary Comparison Schedules Risk Management Fund ....................................................................................................... 116 Workers’ Compensation Fund ............................................................................................. 117 Employee Benefits Fund ...................................................................................................... 118 E. OTHER SUPPLEMENTARY INFORMATION Federal Financial Data Schedule .......................................................................................... 119 iv City of Glendale, Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2009 TABLE OF CONTENTS III. STATISTICAL SECTION Schedule Page Net Assets by Component .................................................................................................. 1 ............. 128 Changes in Net Assets ........................................................................................................ 2 ............. 130 Fund Balances – Governmental Funds ............................................................................... 3 ............. 132 Changes in Fund Balances – Governmental Funds ............................................................ 4 ............. 134 Assessed and Estimated Actual Value of Taxable Property ............................................... 5 ............. 136 Direct and Overlapping Governments Property Tax Rates ................................................ 6 ............. 137 Principal Property Taxpayers ............................................................................................. 7 ............. 138 Property Tax Levies and Collections ................................................................................. 8 ............. 139 City Transaction Privilege Taxes (Sales Tax) by Category ................................................ 9 ............. 140 Ratio of Outstanding Debt by Type.................................................................................. 10 ............. 142 Ratios of Net General Bonded Debt Outstanding............................................................. 11 ............. 144 Net Direct and Overlapping Governmental Activities Debt............................................. 12 ............. 145 Legal Debt Margin Information ....................................................................................... 13 ............. 146 Pledged-Revenue Coverage ............................................................................................. 14 ............. 148 Demographic and Economical Statistics .......................................................................... 15 ............. 150 Principal Employers ......................................................................................................... 16 ............. 151 Full-Time Equivalent City Government Employees by Function/Program ..................... 17 ............. 152 Operating Indicators by Function/Program ...................................................................... 18 ............. 153 Capital Asset Statistics by Function/Program .................................................................. 19 ............. 154 Miscellaneous Water and Sewer Rate Statistics ............................................................... 20 ............. 155 Miscellaneous Water and Sewer Statistics ....................................................................... 21 ............. 156 v This page left blank intentionally. vi December 1, 2009 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, 2009. 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, 2009, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent 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. Profile of the government The City, incorporated in 1910, is located in the northwestern part of metropolitan Phoenix. The City currently occupies a land area of 58.7 square miles and serves a population of 249,811. 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. City of Glendale Municipal Complex • 5850 West Glendale Avenue • Glendale, Arizona 85301-2599 • Phone (623) 930-2000 www.ci.glendale.az.us 1 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 two legally separate entities, the Municipal Property Corporation and Western Loop 101 Public Facilities Corporation, which are 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 December 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 months of March and April. The council is required to hold public hearings on the proposed budget and adopt the FY 2009 final budget by the first Monday in August. The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police). Department heads may request transfers of appropriations within the same fund for his/her 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. Local economy. The City is currently in an economic environment that performs at a rate near or above the national average. Local indicators point to some erosion of growth, which is consistent with the national economy. The economy of Glendale is based on manufacturing, defense activities, services, private graduate schools, retail trade, restaurants, sports, and entertainment. The Arizona Department of Commerce currently lists the average labor force in the City as 145,828 and an average employment of 134,455. Average employment for the same period last year was 137,631, showing a decrease in total employment, and the city’s unemployment rate has grown from 3.6% in fiscal year 2008 to 8.4% in fiscal year 2009. The City receives significant “State Shared Revenues” that are allocated to various funds. As a result of the 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. The slowdown in the various sectors of the City’s economy is reflective of the flat to negative growth trends of the Phoenix metropolitan area and of the state of Arizona. The County’s population is approximately 4.0 million. The state’s population was projected to reach 6.8 million in 2009, representing a 3.03% increase over the previous fiscal year. State unemployment rates have risen from 5.5% to 9.1% and a decline in sales tax revenues has been noted by most metropolitan cities. The City’s largest employers include Luke Air Force Base, Wal-Mart, AAA, Banner Health Systems, Younger Brothers Construction Company, City of Glendale, Glendale Union High School District, Glendale Elementary School District, Deer Valley Unified School District, and Glendale Community College. 2 The City of Glendale has continued to follow its strategy, developed by the Finance Department, to maintain fund balances. Even in a year of declining revenue and a slow economy the City maintained a planned fund balance in the general fund of $52,630. Long-term financial planning. Glendale’s Sports and Entertainment district continued to expand with the addition of a spring training facility named Camelback Ranch-Glendale. It opened in February 2009 for spring training, and attendance was beyond expectations even with the weaker economy. The facility is located at the northwest corner of 107th Avenue, between Camelback Road and Glendale Avenue and consists of a 10,000-seat stadium, 3,000 lawn seats, and 12 practice fields. It is utilized by the Los Angeles Dodgers and Chicago White Sox. In addition to Camelback Ranch-Glendale, the site will be developed with residential, restaurant, and retail properties. This project will provide activities for baseball fans and residents and create economic and tourism opportunities. It is anticipated that the economic impact could be as much as $19 million per year. The City broke ground for the new Glendale City Courthouse located at 47th and Glendale Avenues in September 2008. This $44.7 million construction project will be about 90,000 square feet and will alleviate the serious overcrowded conditions our City Court is experiencing in their current location. The project will be the beginning of an effort to revitalize the city’s Glendale Avenue corridor. 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. The City’s excise taxes, primarily the City sales taxes, began declining in early 2008 and have continued to decline throughout fiscal year 2008-09. As a result, the City instituted 16% spending cuts in general fund departments, except for police and fire, and instituted a hiring freeze. 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, 2008. This was the twenty-first consecutive year the City has received this prestigious award, and the twenty-third 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 2008-09. This is the twentieth year in a row that the City has received the highest form of recognition in governmental budgeting. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor, Council and City Manager for their unfailing support in maintaining the highest standards of professionalism in the management of the City’s finances. Respectfully submitted, Diane Goke Deputy Finance Director 3 This page left blank intentionally. 4 5 Glendale, Arizona and Neighboring Communities 6 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 7 David M. Goulet Councilmember Ocotillo District Manuel D. Martinez Vice Mayor/ Councilmember Cholla District 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 8 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. 9 Ethics Committee Contract Management Airport Operations Mega Events Strategic Initiatives Internal Communications Revised: May 13, 2009 Special Projects & Facilities Finance Economic Development Brian Friedman Graphics/Special Events Civic Center/Tourism Cable/Web Public Information Officers Assistant Deputy City Manager Julie Frisoni Marketing & Communications Deputy City Mgr Facilities & Financial Mgmt Art Lynch City Auditor Candace MacLeod Director City Manager Relations Cathy Gorham Boards & Commissions Finance Vacant Budget & Mgmt Sherry Schurhammer Human Resources Alma Carmicle Information Technology Chuck Murphy Field Operations Stuart Kent Utilities Roger Bailey Transportation Jamsheed Mehta Deputy City Mgr Administrative Services Horatio Skeete Police Chief Steve Conrad Comm. Partnerships Erik Strunk Code Compliance Sam McAllen Library & Arts Sue Komernicky Parks & Recreation Rebecca Benna Deputy City Mgr Community Services Gloria Santiago-Espino Council Services Administrator Kristen Krey Assistant City Manager Pam Kavanaugh Engineering Larry Broyles Deputy City Mgr Public Works Ken Reedy Assistant To the Mayor Steven Methvin City Court Judge Elizabeth Finn Community Action Program Administrator Rebecca Daniel City Manager Ed Beasley Management Assistant To the City Manager Jean Moreno Intergovernmental Programs Director Jessica Blazina City Clerk Pam Hanna Mayor & Council Homeland Security Rob Gunter Environmental Resources Doug Kukino Building Safety Pam Wertz (Interim) Planning Jon Froke Interim Deputy City Mgr Community Development Deborah Mazoyer Fire Chief Mark Burdick City Attorney Craig Tindall This page left blank intentionally. 10 City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ FINANCIAL SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ MANAGEMENT’S DISCUSSION & ANALYSIS (Required Supplementary Information) ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (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, 2009. 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 MD&A, provide these significant key financial highlights for 200809 as follows: • The City’s total net assets decreased $20,495 or 1.90%. The governmental net assets decreased by $17,461 or 2.54%, and the business-type net assets decreased by $3,034 or 0.73%. • General revenues from governmental activities decreased $7,172 or 3.48% and were 76.05% of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions decreased $26,335 or 29.60%. • The business-type activities total revenues decreased by $3,221 or 2.98%. • The total cost of all City programs decreased by $2,296 or .59%. • A major governmental fund, the general fund, had $147,224 in revenues, which is a decrease of $19,739 or 11.82% 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 $156,292, which is a decrease of $925 or .58%. The fund balance decreased $13,758 or 20.72%. This decrease was due to the slow economy, which affects not only our City sales tax, but state shared revenues. • The Western Loop 101 Public Facilities Corporation issued $199,750 in excise tax revenue bonds. These bonds were used to finance Camelback Ranch-Glendale, a spring training ballpark. 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 accrual basis of accounting is used for government-wide financial statements. 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. 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 13 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) 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 government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and 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 19 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 15 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 governmentwide 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 information for the water and sewer, and data from the other three 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 financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. 14 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) 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 $1,081,921 as of June 30, 2009. 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 are 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. The remainder of this page left blank intentionally. 15 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (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, 2009, and 2008 (in thousands) Governmental Activities 2009 2008 Current and other assets Capital assets, net Total assets $ 349,783 1,279,423 1,629,206 $ Total Primary Government Business-Type Activities 2009 2008 326,629 1,133,123 1,459,752 $ 189,374 570,621 759,995 $ 212,197 554,561 766,758 2009 $ 539,157 1,850,044 2,389,201 2008 $ 538,826 1,687,684 2,226,510 Current liabilities Noncurrent liabilities Total liabilities 71,107 890,693 961,800 54,246 720,639 774,885 14,501 330,979 345,480 12,792 336,417 349,209 85,608 1,221,672 1,307,280 67,038 1,057,056 1,124,094 Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets 471,484 144,422 51,500 667,406 499,322 133,695 51,850 684,867 286,452 13,249 114,814 414,515 297,329 12,836 107,384 417,549 757,936 157,671 166,314 1,081,921 796,651 146,531 159,234 1,102,416 $ $ $ $ $ $ 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. The remainder of this page left blank intentionally. 16 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (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, 2009, and 2008 (in thousands) Governmental Activities 2009 2008 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions Total program revenues $ 35,879 24,146 2,600 62,625 $ 41,278 33,191 14,491 88,960 Total Primary Government Business-Type Activities 2009 2008 $ 92,414 8,701 1,207 102,322 $ 2009 91,012 8,348 4,346 103,706 $ 128,293 32,847 3,807 164,947 2008 $ 132,290 41,539 18,837 192,666 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/(loss) on disposal of capital assets Miscellaneous Total revenues 32,890 97,054 19,321 28,826 105,175 22,237 - - 32,890 97,054 19,321 28,826 105,175 22,237 36,267 8,808 1,668 (52) 2,872 261,453 34,109 9,730 4,742 879 302 294,960 2,069 282 90 104,763 4,044 126 108 107,984 36,267 8,808 3,737 230 2,962 366,216 34,109 9,730 8,786 1,005 410 402,944 Expenses: General government Public safety Public works Community services Community environment Street maintenance Interest on long-term debt Water and sewer Landfill Sanitation Housing Total expenses Excess before transfers Transfers in (out) 39,545 109,136 15,040 48,143 3,539 23,978 38,982 278,363 (16,910) (551) 39,998 113,285 16,006 52,185 5,164 26,175 28,475 281,288 13,672 (509) 74,424 8,045 14,039 11,840 108,348 (3,585) 551 74,581 8,067 15,209 9,862 107,719 265 509 39,545 109,136 15,040 48,143 3,539 23,978 38,982 74,424 8,045 14,039 11,840 386,711 (20,495) - 39,998 113,285 16,006 52,185 5,164 26,175 28,475 74,581 8,067 15,209 9,862 389,007 13,937 - Increase (decrease) in net assets Net assets, beginning Net assets, ending (17,461) 684,867 667,406 13,163 671,704 684,867 (3,034) 417,549 414,515 774 416,775 417,549 (20,495) 1,102,416 1,081,921 13,937 1,088,479 1,102,416 $ $ $ $ $ $ Changes in net assets. The decrease in net assets for the governmental activities was primarily due to the slow down in the economy, which affects not only our City sales tax, but state shared revenues. The City’s revenue from governmental activities for the fiscal year ended June 30, 2009, was $261,453. The cost of programs and services for governmental activities was $278,363. The decrease in net assets of $3,034 for the business activities was primarily due to the slow down in the economy. The City’s revenue from business-type activities for the fiscal year ended June 30, 2009, was $104,763. The cost of programs and services was $108,348. 17 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Expenses and Program Revenues - Governmental Activities expenses program revenues $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $General government Public safety Public works Community services Community environment Expenses and Program Revenues - Business-Type Activities Street maintenance Interest on long-term debt expenses program revenues $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $Water and sewer Landfill Sanitation 18 Housing CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Revenue Sources Fiscal Year 2008-09 Investment earnings, unrestricted 1.02% Auto in-lieu taxes 2.41% Gain/(loss) on disposal of capital assets 0.06% Urban revenue sharing (state shared income tax) 9.90% Miscellaneous 0.81% State shared sales tax 5.28% Charges for services 35.03% Sales taxes 26.50% Operating grants and contributions 8.97% Property taxes Capital grants and contributions 8.98% 1.04% Functional Expenses Fiscal Year 2008-09 Housing 3.06% Sanitation 3.63% General government 10.23% Landfill 2.08% Public safety 28.22% Water and sewer 19.25% Interest on long-term debt 10.07% Public works 3.89% Street maintenance 6.20% Community services 12.45% Community environment 0.92% 19 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (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 $221,625, an increase of $2,162 or .99% in comparison with the prior year. • Unreserved undesignated fund balance, which is available for spending at the City’s discretion within a fund, was $107,500, a decrease of $13,191 from the prior year. • The City also had $19,709 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. Unreserved, designated fund balance showed a decrease from the prior year due primarily to an increase in street construction projects activity in the fund balance designated for streets construction. • 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 $ 10,450 16,503 61,478 466 5,519 $ 94,416 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 $42,180, while total fund balance reached $52,630. 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 26.99% of total general fund expenditures, while total fund balance represents 33.67% of that same amount. The transportation fund accounts for the City’s public transit program and transportation improvement projects. The fund saw a decrease in fund balance of $21,847 for the fiscal year ended June 30, 2009. This decrease is due to the expenditure of transportation revenue bonds to fund continuing efforts to improve public transit, arterial streets, park and ride lots, and coordinated traffic signals. The Western Loop 101 Public Facilities Corporation construction fund accounts for the resources used to finance public projects such as the new spring training baseball facility at the northwest corner of 107th Avenue and Camelback Road. The fund had a fund balance of $14,395 at June 30, 2009. Excise tax revenue bonds were issued by the Western Loop 101 Public Facilities Corporation in October 2008 for $199,750. 20 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) The general obligation debt service fund accounts for the resources received from a secondary property tax levy used to repay general obligation debt. The fund had a balance of $22,658 at June 30, 2009. This represents an increase of $8,308 due to anticipated future debt service issuances. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Net assets of the enterprise funds and the internal service funds decreased $1,948 or 0.46%. The enterprise funds’ total net assets were 3.19% restricted and 27.84% unrestricted. 68.97% is invested in capital assets. Internal service funds were 100.00% unrestricted. The water and sewer fund accounts for operations, maintenance and construction projects of City-owned water and sewer systems. The fund saw a decrease in net assets of $4,738 for the fiscal year ended June 30, 2009. This decrease is primarily due to the decrease of restricted cash due to expenditures of bond funds and a decrease in water consumption due to foreclosures and the economy. The internal service fund accounts for risk management, workers’ compensation, and employee benefits provided to other departments. The fund saw an increase of $1,303 for the fiscal year ended June 30, 2009. This increase was due to a decrease in claims payable. General fund budgetary highlights Consistent with national economic conditions, the City's investment revenue was negatively impacted by the economic downturn. • Investment revenue decreased this year as a result of the economic pressures currently prevalent in our economy. • General fund revenues were below the final budget by $5,327 or 3.03%, primarily due to decrease in excise tax revenue. • General fund expenditures were less than the final budget by $44,965 or 20.15%. This positive variance resulted because of the major expenditure categories ending the year under budget. Capital asset and debt administration Capital assets. The City’s investment in capital assets (net of accumulated depreciation) as of June 30, 2009, for its governmental-type activities was $1,279,423 and for the business-type activities was $570,621. 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: • City-wide pipeline replacements, $7,279 • Completed construction of spring training baseball facility, which includes infrastructure, $138,143 • Replacement of fire trucks, $2,475 21 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) The following table is a summary of capital assets reflected in the June 30, 2009, financial statements as compared to last year’s financial statements. Capital Assets at Year End (Net of depreciation) (in thousands) Governmental Activities Construction in progress Land Water storage rights 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 $ $ 2009 288,509 73,697 1,436 294,894 82,994 411,116 49,270 7,563 27,395 21,909 1,510 229 18,901 1,279,423 $ $ 2008 253,573 69,130 1,448 188,800 73,256 425,946 51,889 8,025 27,805 14,881 1,729 132 16,509 1,133,123 $ $ Business-Type Activities 2009 2008 $ 38,116 17,773 26,297 22,128 8,521 8,588 8,090 8,175 44,109 45,286 79,699 73,918 76,490 79,057 148,154 154,655 112,007 115,875 17,734 18,461 3,274 3,376 620 814 212 216 7,298 6,239 570,621 $ 554,561 Total Primary Government $ $ 2009 326,625 99,994 8,521 1,436 302,984 127,103 411,116 49,270 7,563 27,395 79,699 76,490 148,154 112,007 17,734 3,274 22,529 1,722 229 26,199 1,850,044 $ $ 2008 271,346 91,258 8,588 1,448 196,975 118,542 425,946 51,889 8,025 27,805 73,918 79,057 154,655 115,875 18,461 3,376 15,695 1,945 132 22,748 1,687,684 The estimated cost to complete current construction projects is $10,856. 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 $1,146,823 compared to $982,476 last year, a 16.73% net increase. Governmental Activities General obligation Transportation revenue bond Highway users revenue bonds Municipal Property Corporation revenue bonds Western Loop 101 Public Facilities Corporation Capital lease obligation Water and sewer revenue bonds/obligations Notes payable Total $ $ 2009 197,738 105,035 27,480 $ 2008 212,524 109,110 30,895 $ Business-Type Activities 2009 2008 10,127 $ 11,136 - Total Primary Government $ 2009 207,865 105,035 27,480 $ 2008 223,660 109,110 30,895 294,130 298,050 - - 294,130 298,050 199,750 9,076 10,838 1,080 1,688 199,750 10,156 12,526 7,637 840,846 9,045 670,462 282,345 12,425 305,977 288,950 10,240 312,014 282,345 20,062 1,146,823 288,950 19,285 982,476 $ 22 $ $ $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) The City’s total long-term debt increased by $164,347 from the prior year. A key factor in this increase was the issuance of Western Loop 101 Public Facilities Corporation bonds for the financing of the spring training baseball facility. The City maintains an “AA” underlying rating from Standard & Poor’s and an “Aa2” underlying rating from Moody’s for general obligation debt. The subordinate lien water and sewer revenue bonds are rated “A1” by Moody’s and “AA” by Standard & Poor’s. Transportation bonds were assigned an underlying rating of “AA” by Standard & Poor’s and “A1” by Moody’s. 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, 2009, was $99,500 and $300,409, 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 2009-10 budget is $775,000 (down 16.22% from 2008-09), including a $341,269 operating budget (a decrease of 9.45% from 2009) and $291,583 in capital outlay (down 25.60% from 2009). The fiscal year 2009-10 budget includes $61,584 contingency appropriation to cover emergency expenses or revenue shortages. • As noted in prior years, Arizona cities are dependent on sales taxes and other economically sensitive revenues and are susceptible to slowdowns in the economy. This is especially true in the current economic climate not only of Arizona, but of the entire nation. The City has implemented cost saving measures and will continue to seek ways to maintain quality services while not exceeding a smaller pool of revenues. • The City’s unemployment rate for June 2009 was 8.40%, which is an increase from a year ago. This compares favorably to the state’s average unemployment rate of 9.10% and the national average rate of 9.50%. 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 Deputy Finance Director, 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, 2009 This page left blank intentionally. City of Glendale, Arizona Statement of Net Assets June 30, 2009 (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 Equity in joint venture Total assets $ $ 1,643 15,968 578 7,570 913 11,570 116,101 LIABILITIES Vouchers payable Accounts payable Retainage payable 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 186,864 Primary Government Business-Type Activities $ 76,648 Total $ 11,412 377 (913) 5,593 28,499 263,512 1,643 27,380 578 7,947 17,163 144,600 363,642 915,781 8,576 1,629,206 64,413 506,208 67,758 759,995 428,055 1,421,989 8,576 67,758 2,389,201 16,343 5,841 505 23,573 923 1,638 22,284 6,032 114 55 6,997 223 1,072 8 22,375 5,955 560 30,570 1,146 2,710 22,292 47,460 843,233 961,800 14,426 316,553 345,480 61,886 1,159,786 1,307,280 471,484 286,452 757,936 19,340 61,810 24,771 2,680 6,230 13,540 5,597 10,454 51,500 667,406 1,190 10,649 1,410 114,814 414,515 19,340 63,000 24,771 2,680 6,230 13,540 10,649 5,597 11,864 166,314 1,081,921 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, 2009 (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 $ $ 39,545 109,136 15,040 48,143 3,539 23,978 38,982 278,363 74,424 8,045 14,039 11,840 11 840 108,348 386,711 $ $ 11,879 4,670 588 15,661 3,045 36 35,879 67,810 7,304 15,258 2,042 2 042 92,414 128,293 Program Revenues Operating Grants and Contributions $ $ 139 5,667 138 2,288 15,914 24,146 8,701 8 701 8,701 32,847 Capital Grants and Contributions $ $ 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 (loss) 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. 26 350 1,767 483 2,600 482 725 1,207 3,807 Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ $ (27,527) (98,449) (14,314) (28,427) (494) (7,545) (38,982) (215,738) $ - $ (27,527) (98,449) (14,314) (28,427) (494) (7,545) (38,982) (215,738) (215,738) (6,132) (741) 1,219 (372) (6,026) (6,026) (6,132) (741) 1,219 (372) (6,026) (221,764) 3,983 28,907 97,054 19,321 36,267 8,808 1,668 (52) 2,872 (551) 198,277 (17,461) 684,867 667,406 2,069 282 90 551 2,992 (3,034) 417,549 414,515 3,983 28,907 97,054 19,321 36,267 8,808 3,737 230 2,962 201,269 (20,495) 1,102,416 1,081,921 $ $ 27 City of Glendale, Arizona Balance Sheet Governmental Funds June 30, 2009 (amounts expressed in thousands) 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 Capital project funds Undesignated, reported in: General fund Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances $ 52,065 $ 205 7,925 526 3,967 2,416 277 86 67,467 $ $ 7,798 269 1,374 918 1,631 2,847 14,837 Major Funds Western Loop 101 Public Facilites Corporation Transportation Construction $ 25,893 $ 1,627 922 25,880 54,322 $ 1,347 2,119 100 57 48 3,671 $ 44 $ 3,399 17,891 21,334 $ 3,443 97 3,399 6,939 General Obligation Debt Service Other Non-Major Governmental Funds $ 40,558 $ 1,438 41,996 $ 4,375 1,170 13,793 19,338 $ 53,503 $ 2,998 52 4,232 135 70,639 8,576 140,135 $ 5,434 10 405 165 5 3,793 7 19,198 17,137 12,690 58,844 Total Governmental Funds $ 172,063 $ 1,643 15,949 578 3,967 7,570 412 114,496 8,576 325,254 $ 14,579 5,841 505 1,596 923 3,890 1,638 23,573 24,601 26,483 103,629 10,450 - - 22,658 61,308 94,416 12,770 - - - - 528 6,411 12,770 528 6,411 29,410 52,630 67,467 50,651 50,651 54,322 14,395 14,395 21,334 22,658 41,996 6,376 6,668 81,291 140,135 29,410 57,027 21,063 221,625 325,254 $ 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, 2009 (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 $ 221,625 1,653,516 (374,093) 1,279,423 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 11,932 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. 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 OPEB obligations Unamortized premium on debt issuance Arbitrage rebate payable 8,731 (797,650) (7,637) (9,076) (1,961) (14,857) (15,785) (9,324) (332) (856,622) 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 2,317 $ The notes to the financial statements are an integral part of this statement. 29 667,406 City of Glendale, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2009 (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 (Deficiency) of revenues (under) expenditures OTHER FINANCING SOURCES (USES) Discount on long-term debt Long-term debt issued Premium on long-term debt issued Proceeds from equipment disposal 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 $ 58,761 9,006 64,710 7,133 4,031 1,430 2,153 147,224 Transportation Western Loop 101 Public Facilities Corporation Construction $ $ 20,875 2,581 131 33 1,283 1,000 25,903 10 2,537 2,547 General Obligation Debt Service $ 29,054 29,054 Other Non-Major Governmental Funds $ 21,429 1,497 24,351 2,617 1,082 3,656 54,632 Total Governmental Funds $ 130,119 10,503 91,642 9,881 4,064 3,805 9,346 259,360 23,867 83,110 10,944 26,854 365 841 1,624 12,410 - 1,265 - 14 916 20,514 128 3,030 3,113 11,060 28 26,048 103,624 11,072 42,294 3,478 11,901 1,666 2,400 505 5,782 156,292 28,063 40,473 103,319 104,584 12,153 8,579 20,746 15,117 30,487 49,011 133,404 29,670 39,571 186,175 455,499 (9,068) (14,570) (102,037) 8,308 (78,772) (196,139) 289 12 (3,136) 152,507 1,894 - - 47,243 43 (3,136) 199,750 1,894 344 617 (5,596) (4,690) 1,147 (8,436) (7,277) 151,265 - 20,150 (8,433) 59,003 21,914 (22,465) 198,301 (13,758) (21,847) 49,228 8,308 (19,769) 66,388 52,630 72,498 50,651 (34,833) 14,395 14,350 22,658 101,060 81,291 $ The notes to the financial statements are an integral part of this statement. 30 $ $ $ 2,162 $ 219,463 221,625 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, 2009 (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 $186,175 exceeded depreciation of $39,963 for the current period. The net effect of various transactions involving capital is to increase net assets. Capital contributions Disposals Gain (loss) on sales 2,162 146,212 $ 483 (344) (52) 87 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 Bond discount Bonds issuance costs Principal paid Long-term debt issued Arbitrage rebate 2,287 (1,894) 3,136 1,265 29,670 (199,750) 284 (167,289) 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. (1,272) Other post employment benefits reported in the statement of activities do not require the use of current financial resoruces and therefore, are not reported as expenditures in governmental funds. 450 Internal service funds are used by management to charge the costs of workers' compensation, risk management, and employee benefits to individual funds. 713 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 (811) $ The notes to the financial statements are an integral part of this statement. 31 (17,461) City of Glendale, Arizona Statement of Net Assets Proprietary Funds June 30, 2009 (amounts expressed in thousands) ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts Allowance for uncollectibles Due from other funds Intergovernment receivable Inventories and prepaid items Total current assets Business-Type Activities - Enterprise Funds Other Major Funds Proprietary Water and Sewer Funds Total Governmental Activities Internal Service Funds $ $ 45,336 9,588 (359) 5,587 60,152 Noncurrent assets: Restricted cash and investments Capital assets: Capital assets Accumulated depreciation Capital assets, net 31,312 LIABILITIES Current liabilities: Vouchers payable Accounts payable Retainage payable Compensated absences 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 OPEB long-term obligations Other long-term debt Notes payable Capital lease obligations Claims payable Estimated closure and post-closure costs Total noncurrent liabilities Total liabilities $ 42 32 76,648 14,801 11,799 (387) 1,189 377 5,593 95,219 19 62 14,882 28,499 1,605 718,831 (172,225) 546,606 46,584 (22,569) 24,015 765,415 (194,794) 570,621 67,758 642,821 702,973 24,057 59,124 67,758 666,878 762,097 1,605 16,487 4,513 71 55 1,376 223 770 - 1,519 43 597 1,266 302 8 - 6,032 114 55 1,973 1,266 223 1,072 8 - 1,764 4,280 835 414 9,205 1,379 6,984 25,825 132 488 13 4,368 967 414 9,205 488 1,379 6,997 30,193 6,044 320 9,160 6,235 273,140 2,130 11,046 302,031 327,856 337 1,270 42 592 12,281 14,522 18,890 657 9,160 6,235 273,140 3,400 42 11,046 592 12,281 316,553 346,746 1,712 1,712 7,756 263,649 22,803 286,452 - 1,190 10,649 433 99,196 375,117 977 16,454 40,234 1,190 10,649 1,410 115,650 415,351 8,731 8,731 $ 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. $ 2,211 (28) 1,189 377 6 35,067 28,457 Equity in joint venture Total noncurrent assets Total assets 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 $ $ (836) 414,515 - $ City of Glendale, Arizona Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) 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 Business-Type Activities - Enterprise Funds Other Major Funds Proprietary Water and Sewer Funds Total Governmental Activities Internal Service Funds $ $ 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) $ 18,206 12,684 9,285 19,152 59,327 6,940 Nonoperating revenues (expenses): Impact fees Investment income Interest expense Net loss from joint venture Amortization of bond issuance cost Gain on disposal of assets OPEB expense Total nonoperating revenue (expenses) 379,855 375,117 $ 33 8,702 37,361 26,798 4,816 10,437 5,621 1,594 4,223 99,552 18,206 12,684 6,172 11,505 862 13,090 9,285 21,545 93,349 6,203 38,747 40,234 370 370 1,303 1,303 $ $ 217 (3,034) 23,264 223 23,487 22,554 22,554 933 1,653 2,060 (13,124) (2,013) (169) 282 93 (11,218) (5,015) 1,213 604 (53) (3,251) 158 725 604 1,487 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. $ 21 659 (56) 237 34 895 (5,173) 488 (53) (4,738) $ 8,701 4,816 10,437 5,621 1,594 2,116 33,285 6,172 11,505 862 13,090 2,393 34,022 (737) 1,632 1,401 (13,068) (2,013) (169) 45 59 (12,113) Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending 1 37,361 26,798 2,107 66,267 7,428 8,731 City of Glendale, Arizona Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Business-Type Activities - Enterprise Funds Other Major Funds Proprietary Water and Sewer Funds Total 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 $ Cash flows from noncapital financing activities: Proceeds from sale of investments Transfers in Transfers out Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Proceeds from sale of capital assets 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 63,558 - $ 23,311 8,805 $ Governmental Activities Internal Service Funds 86,869 8,805 (7,747) (12,921) (13,869) (29,427) - (17,078) 23,852 (8,076) 3,372 (25,154) 27,224 (25,373) (1,907) (53) 5 604 - 5 604 (53) - (53) 609 556 - 45 (5,229) (39,437) 1,632 (13,242) - (807) (4,075) 21 (66) 725 45 (6,036) (43,512) 1,653 (13,308) 725 - (56,231) (4,202) (60,433) - 1,668 1,668 659 659 2,327 2,327 Net increase (decrease) in cash and cash equivalents during fiscal year (30,764) 438 (30,326) $ 23,466 - (6,122) (16,506) 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 $ 104,557 73,793 The notes to the financial statements are an integral part of this statement 34 $ 30,916 31,354 $ 135,473 105,147 370 370 (1,537) $ 17,943 16,406 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operations: Amortization and depreciation Changes in assets and liabilities: Accounts receivable Intergovernmental receivable Inventories and prepaid items Vouchers and accounts payable Accrued expenses Due to other funds Deposits Unearned rent Compensated absences Claims payable Estimated closure and post-closure costs Net cash provided (used) 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 Estimated closure and post-closure costs Business-Type Activities - Enterprise Funds Other Major Funds Proprietary Water and Sewer Funds Total Governmental Activities Internal Service Funds $ $ $ $ $ $ 6,940 $ (737) $ 6,203 19,152 2,393 21,545 (970) 2 (2,024) 514 24 53 161 - (93) (1,085) (3) 704 1,234 12 1 84 - (1,063) (1,083) (2,027) 1,218 24 1,234 65 1 245 - 23,852 $ 45,336 28,457 73,793 $ 488 (2,013) $ - 35 $ 862 3,372 $ 31,312 42 31,354 $ - $ 862 $ 862 27,224 76,648 28,499 105,147 488 (2,013) 862 933 (19) (15) 121 (2,927) $ $ $ $ (1,907) 14,801 1,605 16,406 - CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (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/Deficits in Fund Equity ............. II ............................. 45 Deposits and Investments ........................................................................................................ III ............................. 45 Capital Assets .......................................................................................................................... IV ............................. 47 Construction and Other Significant Commitments ................................................................... V ............................. 49 Self-Insurance Funds ............................................................................................................... VI ............................. 50 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 ............................. 69 Other Post-Employment Benefits ........................................................................................ XVII ............................. 72 Contingent Liabilities and Commitments .......................................................................... XVIII ............................. 74 Subsequent Events ................................................................................................................ XIX ............................. 74 36 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) I. Summary of significant accounting policies A. Government-wide and fund financial statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the primary City and its component units. 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 (GASB) Statement 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 and its component units, entities for which the City is considered to be financially accountable. Blended 37 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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 units 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 tax return with the Internal Revenue Service. Copies of the tax return are available from the City’s Finance Department. City of Glendale, Arizona, Western Loop 101 Public Facilities Corporation (PFC) is a non-profit corporation organized under the laws of the State of Arizona to assist the City to finance, construct and equip a spring training baseball facility for two major league teams and all other related infrastructure. The Board of Directors of the PFC, appointed by the City Council, consists of four City employees and one private citizen. The Board of Directors is responsible for authorizing debt (obligations) of the PFC. The City Council also approves the debt of the PFC. Although the PFC is a legally separate entity from the City, the PFC is reported as if it is part of the primary government because its sole purpose is to finance and construct public facilities of the City. The PFC does not issue separate audited financial statements. The PFC does file a tax return with the Internal Revenue Service. Copies of the tax return are available from the City’s Finance Department. 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 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. The Western Loop 101 Public Facilities Corporation (PFC) construction fund accounts for the construction and equipping of a spring training baseball facility and related infrastructure. The facility and infrastructure are financed by PFC issued excise tax revenue bonds. The City reports the following major proprietary fund: The water and sewer fund accounts for operations, maintenance and construction projects of the Cityowned water and sewer systems. 38 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Additionally, the City reports the following internal service funds: 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 City-wide 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 businesstype 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 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 highway users 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 fund: Permanent fund is 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. 39 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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 City-wide 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 except as described below in relation to grants. 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 because of their availability 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. Grant revenues are recognized when all eligibility requirements are met, not necessarily when received. Grant monies that have been received but are as yet unearned are carried forward as deferred revenue. However, earned but not yet received grant monies are recognized as revenue and carried forward as a receivables. This practice is defined and supported by GASB Statement 33, as it pertains to “government-mandated nonexchange transactions,” paragraphs 19-25. 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. 40 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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, 2009, the postage portion of the general fund supplies inventory was $11. 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. 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 $13,124. In addition, $502 was included as part of the cost of capital assets under construction in connection with water and sewer projects. Capital assets 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 41 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Capital assets transferred between funds are transferred at their carrying 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 1,814 acre-feet of water each year through 2099. These rights, costing $2,692, 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, 2009, is $2,053. In addition, the City will be responsible for paying for the cost of water delivered each year. 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, 2009, 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. The City purchased Central Arizona Project water rights as part of the Salt River Pima-Maricopa Indian Community Water Rights Settlement in November 2007. These rights, as of June 30, 2009, costing $2,027, are a permanent right and are considered to have an indefinite useful life. 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 42 January 1, 2008 August 20, 2008 October 1, 2008 March 1, 2009 November 1, 2008 May 1, 2009 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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, 2009, is as follows: Fund General fund General obligation debt service fund Total Rate 0.24 1.35 $ 1.59 $ 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 120 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. Employees who have ten or more years of service will receive upon retirement 100% of up to 160 hours of vacation accrued. Any remaining vacation time above 160 hours will be 100% contributed to a mandatory Retiree Health Savings plan for the employee. Sick leave is accumulated without limit and can be used in the event of an illness in the immediate family. Accumulated sick leave can be converted to a cash benefit on a biannual basis for employees based on one third of the average hourly rate the last 36 months. Employees must maintain a minimum sick leave balance on the books. Employees who retire and have ten or more years of service will have 40% of their average hourly wage the last 36 months of their accrued sick time contributed to a mandatory Retiree Health Savings plan. Employees who have 5 or more years of service will receive one third of their average hourly wage last 36 months in cash payout. 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, 2009, 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. All of the outstanding vacation, compensatory time, and sick leave are recorded as a liability on the government-wide financial statements, and the proprietary fund financial statements, according to payment policy. 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. 43 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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 44 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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 2008-09 was $184. II. Compliance - Excess of expenditures over appropriations/deficits in fund equity For the year ended June 30, 2009, expenditures exceeded appropriations in the housing fund by $3,279. These over-expenditures were funded by beginning fund balance and operating transfers. The City ended the fiscal year June 20, 2009, with a deficit fund balance in the following funds: Fire and police construction fund The deficit was funded by a fiscal year 2010 bond sale, see footnote XIX. III. $ 3,226 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 $77,806 and the bank balances were $82,663. The difference of $4,856 represents deposits in transit, outstanding checks and other reconciling items. Of the bank balance, $500 was insured by the Federal Depository Insurance Corporation (FDIC). The remaining bank balances were covered by $102,255 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), 45 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. As of June 30, 2009, the City had the following investments: Investment Type Investment Maturities (in years) 1-2 2-3 0-1 U.S. Agencies Total investments State LGIP total Grand total investments Cash deposits Other restricted cash Total deposits and investments $ 196,708 196,708 34,633 $ 231,341 $ $ - $ $ Fair Value - $ 196,708 196,708 34,633 231,341 77,806 98,965 $ 408,112 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, 2009, the City’s investments were rated by Moody’s Investor Service and Standard & Poor’s as follows: Moody's S&P % of Weighted Average Investment Type Rating Rating Investments Maturity (Years) U.S. Agencies Aaa AAA 100.00% 0.08 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 FHLB Total FHLMC Total FNMA Total Investment Type U.S. Agencies U.S. Agencies U.S. Agencies $ Amount 115,586 36,628 34,134 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, 2009 (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, 2009, is as follows: Balances June 30, 2008 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 $ 237,455 139,525 578,817 68,245 32,122 14,003 34,083 3,535 756 37,542 1,146,083 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 253,573 69,130 1,448 324,151 Additions $ 69,769 4,567 74,336 (6,637) (5,924) (15,285) (2,619) (434) (462) (3,933) (671) (78) (3,920) (39,963) 808,972 72,546 47 $ 84,440 11,718 650 24 8,408 420 175 6,674 112,509 (48,655) (66,269) (152,871) (16,356) (4,317) (5,978) (19,202) (1,806) (624) (21,033) (337,111) 1,133,123 Transfers $ 146,882 (34,833) (34,833) $ 28,291 3,951 2,553 27 11 34,833 $ (55,292) (72,040) (168,156) (18,975) (4,751) (6,440) (22,731) (2,452) (702) (22,554) (374,093) (570) $ (582) 288,509 73,697 1,436 363,642 350,186 155,034 579,272 68,245 32,146 14,003 44,640 3,962 931 41,455 1,289,874 153 404 25 2,399 2,981 34,833 - (12) (12) (160) (195) (404) (20) (2,772) (3,551) - $ Balances June 30, 2009 Disposals 915,781 $ 1,279,423 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Balances June 30, 2008 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 Water storage rights 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 Water storage rights 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 $ 16,612 302 859 22,128 39,901 Additions $ 28,564 605 1,001 4,169 34,339 Disposals $ (9,299) (528) (9,827) Balances June 30, 2009 $ 35,877 907 1,332 26,297 64,413 14,214 9,159 52,484 102,365 119,396 201,965 134,693 27,609 5,187 3,851 921 18,355 690,199 360 1,506 7,870 90 489 21 3 2,759 13,098 (73) (2,225) (2,298) 14,574 9,159 53,990 110,235 119,486 202,454 134,693 27,609 5,187 3,799 924 18,889 700,999 (6,039) (571) (7,198) (28,447) (40,339) (47,310) (18,818) (9,148) (1,811) (3,037) (705) (12,116) (175,539) (445) (67) (2,683) (2,089) (2,657) (6,990) (3,868) (727) (102) (215) (7) (1,695) (21,545) 73 2,220 2,293 (6,484) (638) (9,881) (30,536) (42,996) (54,300) (22,686) (9,875) (1,913) (3,179) (712) (11,591) (194,791) 514,660 (8,447) 554,561 48 $ 25,892 (5) $ (9,832) 506,208 $ 570,621 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (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 $ $ 12,099 6,099 3,703 12,274 5,752 36 39,963 19,152 1,026 996 371 21,545 Included in the water and sewer depreciation amount is $67 amortization of water storage rights. V. Construction and other significant commitments The City has active construction projects as of June 30, 2009. The projects include street construction, park facilities, 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 $ $ $ 76,993 32,661 39,339 117,567 21,949 35,878 906 1,332 326,625 $ 57 172 2,739 4,116 3,753 19 10,856 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. 49 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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 $600 for each workers’ compensation claim and purchases commercial insurance for claims in excess of $600. 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 per plan year. Claims exceeding $150 for an individual are paid by the reinsurance plan. Premiums for the minimum premium medical plan 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. 50 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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 $5,992 as of June 30, 2009. Changes in the balances of claims liabilities during the past two years are as follows: Workers' Compensation 2009 2008 Risk Management 2009 2008 Unpaid claims, beginning of fiscal year Current year claims and changes in estimate Claims payments $ Balance at fiscal year end $ 4,080 $ (957) 186 3,747 $ 2,031 (1,698) 3,309 $ 1,986 $ 558 (815) 4,080 $ 1,729 2,098 Employee Benefits 2009 2008 $ 681 (793) $ 1,986 2,853 $ 19,670 (21,569) $ 954 2,055 20,253 (19,455) $ 2,853 VII. Leases A. Capital leases The City’s capital lease activity consists principally of leasing various types of heavy equipment for 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. Leases vary in terms from 5 years for sanitation vehicles, 7-9 years for fire trucks to 10 years for real property. Current year expenditures are $608 for business-type activities and $1,762 for governmental activities. The future minimum lease obligation and net present value of lease payments at June 30, 2009, are as follows: Governmental Business-Type Year Ending June 30 Activities Activities 2010 2011 2012 2013 2014 2015-2018 Total minimum lease payments Less: Amount representing interest Present value of net minimum lease payments 51 $ $ 2,247 2,882 5,237 77 80 103 10,626 (1,550) 9,076 $ $ 523 459 155 1,137 (57) 1,080 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (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 $ $ $ 439 2,975 197 5,492 9,103 (5,029) 4,074 $ 249 7,474 150 2,389 10,262 (6,597) 3,665 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 2008-09 were $670. 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 2010 and beyond. The carrying value of leased assets is $172,747 (cost of $231,176 less accumulated depreciation of $58,429). 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 Fiscal Year Revenues 2010 2011 2012 2013 2014 2015 and beyond Total $ $ 1,116 927 871 707 634 16,669 20,924 VIII. Short-term debt The City did not issue short-term debt for the year ended June 30, 2009. 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 activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City 52 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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 Users Revenue Bonds (HURF) are used to construct street and highway projects. The $27,480 HURF bonds outstanding are special obligations of the City and are secured by taxes, fees, charges or other monies collected by the state and returned to the City pursuant to Title 28, Chapter 18, Article 2, A.R.S. as amended. A special revenue fund called highway users gas tax fund has been set up by the City to collect HURF revenues from the state and transferred to the debt service fund to pay for HURF principal and interest. The total principal and interest remaining on the bonds to be paid is $27,394. The current year revenues of $14,575 paid the current year principal and interest amounts of $3,570 and $1,126, respectively. The State Legislature has in the past and may in the future alter the type and/or rate of taxes, fees, and charges as well as allocation of such monies. The transportation revenue bonds are special revenue obligations of the City and are used to construct various transportation projects such as roadway widening, intersection improvements, and right-of-way acquisitions. The City has pledged and the debt service payments are secured by a 0.50% transportation excise tax approved by voters on November 6, 2001. The total principal and interest to be paid to a trustee under a trust agreement is $168,539. The current year revenues of $20,875 collected in the transportation special revenue fund, paid the current year principal and interest amounts of $2,545 and $4,782, respectively. The water and sewer revenue bonds/obligations have been issued for the construction, acquisition, and equipping of water and sewer facilities and related systems and infrastructure. The $282,345 in outstanding obligations are special revenue obligations and are pledged and secured solely by the net revenues of the system. The net revenues of the system consist of revenues collected from customers including development impact fees less such necessary expenses of operation, maintenance, and repair of the system excluding depreciation and debt service. The current year principal and interest on the bonds and current year net revenues of the system were $22,525 and $27,724, respectively. C. Municipal Property Corporation (MPC) bonds In 1982, 2002, 2003, 2006, and 2008 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. In June 2008, the City entered into a lease agreement with the MPC to issue bonds to refund outstanding 2006B 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. 53 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) D. Western Loop 101 Public Facility Corporation (PFC) bonds In 2008, the PFC, a non-profit corporation, issued bonds to finance the acquisition and construction of a new spring training baseball facility for Major League Baseball and infrastructure. The bonds are a special obligation of the City and are payable solely from and secured by a pledge of the City’s unrestricted excise taxes. A portion of the bonds was reserved to pay capitalized interest on the bonds to October 30, 2011. Thereafter, an amount equal to the PFC debt service and related miscellaneous fees, is payable in installments by the City. The pledge of unrestricted excise taxes under the lease agreement to secure the payment of principal and interest on the 2008 bonds is junior and subordinate to the City’s pledge of unrestricted excise taxes under an existing lease agreement (the “MPC Lease Agreement”) between the City and the MPC, which secures the payment of principal and interest on the outstanding bonds of the MPC. The 2008 bonds and the obligation of the City to make rental payments under the lease agreement each constitute a limited obligation of the Corporation and the City, respectively, and neither constitutes a general obligation of the Corporation of the City. 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, 2009: June 30, 2008 General obligation (GO) bonds Revenue bonds: Highway users revenue Transportation bonds Municipal Property Corporation Public Facilities Corporation Total bonds payable $ Notes payable: Notes payable Total notes payable Other long-term obligations: Capital lease obligations OPEB obligations Compensated absences Claims and judgments Unamortized premium on debt issuance Developer payable obligations Arbitrage rebate payable Total other long-term obligations Total $ Additions 212,524 $ June 30, 2009 Reductions - $ (14,786) $ 197,738 Amounts Due Within One Year $ 13,793 30,895 109,110 298,050 650,579 199,750 199,750 (3,415) (4,075) (3,920) (26,196) 27,480 105,035 294,130 199,750 824,133 3,570 2,545 6,575 26,483 9,045 9,045 - (1,408) (1,408) 7,637 7,637 1,349 1,349 10,838 16,235 14,693 8,919 12,127 19,271 (1,762) (450) (10,367) (22,198) 9,076 15,785 16,453 5,992 1,618 13,104 4,280 8,035 1,679 616 61,015 1,894 282 33,574 (605) (284) (35,666) 9,324 1,961 332 58,923 626 19,628 720,639 $ 233,324 $ (63,270) $ 890,693 $ 47,460 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. Of the $890,693 in the total liabilities, $44,192 represents debt related to unspent bond proceeds ($25,880 restricted cash in transportation fund, $17,891 restricted cash 54 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) in Western Loop 101 Public Facilities Corporation construction fund and $421 restricted cash in Municipal Property Corporation construction fund) and $807,939 is related to net assets invested in capital assets. Other obligations not included in the calculation of net assets invested in capital assets are OPEB obligations, compensated absences, claims and judgments, and arbitrage rebate payable. 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, 2009: June 30, 2008 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 OPEB obligations Compensated absences Housing noncurrent liabilities Total other long-term obligations Total $ 10,805 331 288,950 300,086 Additions $ June 30, 2009 Reductions - $ (810) (199) (6,605) (7,614) $ 9,995 132 282,345 292,472 Amounts Due Within One Year $ 835 132 9,205 10,172 10,240 10,240 3,540 3,540 (1,355) (1,355) 12,425 12,425 1,379 1,379 1,688 - (608) 1,080 488 11,419 862 12,281 - 7,067 3,494 2,386 37 26,091 1,852 5 2,719 6,649 3,400 2,630 42 26,082 414 1,973 2,875 336,417 $ 6,259 (418) (94) (1,608) (2,728) $ (11,697) $ 330,979 $ 14,426 Of the $330,979 in total liabilities, $28,457 represents debt related to unspent bond proceeds and $284,169 is related to net assets invested in capital assets. Other obligations not included in the calculation of net assets invested in capital assets are estimated closure and post-closure costs, OPEB obligations, compensated absences, and housing noncurrent liabilities. 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. 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, 2009 (amounts expressed in thousands) G. Bonds payable Bonds payable at June 30, 2009, are comprised of the following: Classified in governmental activities on the government-wide financial statements: General Obligation Bonds: Issued Fiscal Amount of Year Year Original Series Ending Interest Issue Matures June 30 Purpose Rate G.O. bonds payable from secondary assessed property taxes 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 2015 2022 2022 2019 2015 2015 2021 2022 $ Revenue bonds payable from highway users revenue funds Streets 5.00-5.37 2000 2010 Streets 2.50-4.00 2004 2014 Streets 4.00-5.00 2006 2016 Total Revenue bonds payable from the 0.5% transportation sales tax Transportation excise tax 4.00-5.00 2008 2032 20,215 40,235 52,525 36,645 11,960 9,065 29,365 61,000 Bonds Outstanding June 30, 2009 $ 2,918 27,740 36,380 28,405 8,795 9,065 26,525 57,910 197,738 8,750 14,655 15,745 3,240 11,080 13,160 27,480 109,110 105,035 Municipal Property Corporation payable from general fund lease payments Refunding 4.25-4.90 2000 2009 MPC excise tax 5.00-5.38 2003 2033 MPC excise tax 2003A 2.50-5.00 2003 2024 MPC excise tax 2003B 1.46-5.58 2003 2033 MPC refunding 4.70-4.70 2004 2033 MPC excise tax 2004A 2.00-5.00 2004 2014 MPC excise tax 2006A 4.00-5.00 2006 2026 MPC excise tax 2008A 3.00-5.00 2008 2032 MPC excise tax 2008B 5.45-6.16 2008 2033 MPC excise tax 2008C 4.00-5.02 2008 2015 Total 12,615 5,055 49,940 105,260 7,250 10,880 33,250 32,315 52,780 9,140 1,735 5,055 48,705 96,735 7,250 8,315 32,100 32,315 52,780 9,140 294,130 Public Facility Corporation payable from general fund lease payments PFC excise tax 2008A 5.75-7.00 2008 2038 PFC excise tax 2008B 5.00-7.00 2008 2038 PFC excise tax 2008C 7.50 2008 2017 Total 137,495 48,670 13,585 137,495 48,670 13,585 199,750 Total bonds payable recorded in governmental activities Less current portion Long-term portion of bonds payable recorded in governmental activities 56 $ 824,133 (26,483) 797,650 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Classified in business-type activities on the government-wide financial statements: Issued Fiscal Year Ending June 30 Year Series Matures 2000 2015 G.O. bonds payable from water and sewer fund Water and sewer 1.50-5.00 2003 Total 2022 13,875 9,995 9,995 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 Various 3.00-5.00 2008 2028 Total 53,000 80,000 80,000 44,500 65,500 12,965 80,000 80,000 43,880 65,500 282,345 Purpose Interest Rate G.O. bonds payable from landfill fund Landfill 5.00-5.40 Total Amount of Original Issue Bonds Outstanding June 30, 2009 $ $ 1,460 Total bonds payable recorded in business-type activities Less current portion Long-term portion of bonds payable recorded in business-type activities $ 132 132 292,472 (10,172) 282,300 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, 2009, is as follows: 6% Capacity to incur bonded debt Less: Bonded debt applicable to limit Unused bonded debt capacity $ $ 131,621 (32,121) 99,500 20% $ $ 438,735 (138,326) 300,409 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, 2009 (amounts expressed in thousands) H. Bonds authorized, issued and unissued Bonds authorized but not fully issued as of July 1, 2009, are shown below: G.O. Bonds Voter authorized October 20, 1981 Operations center Authorized Amount $ Voter authorized March 10, 1987 Library 6,750 Issued through June 30, 2009 $ 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 Landfill development(1) Library Open spaces Parks and recreation Public safety 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 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, 2009 (amounts expressed in thousands) I. Other debt (notes, long-term) Classified in the governmental activities in the government-wide financial statements: Northern Crossing Land Purchase - The $14,500 note dated November 15, 2002, is payable in nine annual installments at a variable interest rate based on LIBOR with the final payment due on or before September 15, 2012. The interest rate assumption stays level after the 2008 fiscal year. $ 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. 4,278 540 Repayment of State Aviation grant funds - The $3,131 note dated October 9, 2007, is payable in ten bi-annual installments at an interest rate of 4.31% with the final payment due on or before December 31, 2012. 2,557 6822-6832 North 58th Avenue Land and Improvements Purchase - The $431 note dated September 5, 2007, is payable in three annual payments at an interest rate of 2.50% with the final pyament due on or before July 15, 2009. 157 6820 North 58th Avenue Land and Improvements Purchase - The $187 note dated September 5, 2007, is payable in five annual payments at an interest rate of 2.50% with the final payment due on or before July 15, 2011. 105 Total notes payable recorded in governmental activities Less current portion Long-term portion of notes payable recorded in governmental activities $ 7,637 (1,349) 6,288 $ 9,593 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. Groundwater treatment plant's future site of 11.48 acres at 99th and Northern Avenues. The $3,540 note is payable in five annual installments at an interest rate of 5.00% with the final payment due on or before April 1, 2013. Total notes payable recorded in business-type activities Less current portion Long-term portion of notes payable recorded in business-type activities 59 2,832 $ 12,425 (1,379) 11,046 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) J. Debt service requirements Various Purposes Fiscal Year Ending 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 2035 2036 2037 2038 Total Less interest Principal HURF Bonds $ 4,699 4,690 4,696 4,699 4,686 1,953 1,971 27,394 Transportation Bonds $ 7,330 7,328 7,327 7,326 7,326 7,326 7,326 7,327 7,330 7,328 7,326 7,329 7,329 7,328 7,328 7,328 7,330 7,329 7,331 7,328 7,326 7,327 7,325 168,538 MPC Bonds $ 20,401 21,186 21,317 21,357 21,372 19,552 19,665 22,031 22,086 22,142 22,195 22,258 22,307 22,363 23,010 23,064 23,122 20,525 20,585 19,778 20,717 20,778 20,837 13,633 8,563 514,844 PFC Bonds $ 13,011 13,011 13,011 13,011 15,951 17,765 17,657 15,294 15,234 15,180 15,127 15,066 15,017 14,958 14,310 14,256 14,202 16,798 16,738 17,542 16,604 16,544 16,486 16,313 18,340 21,767 21,764 21,765 21,760 474,482 GO Bonds $ 22,673 22,630 22,631 22,642 22,646 22,596 19,039 18,951 18,901 14,475 11,155 11,197 8,457 237,993 3,484 66,048 227,289 274,732 54,048 $ 23,910 $ 102,490 $ 287,555 $ 199,750 $ 183,945 Notes Payable $ $ 1,831 2,131 2,519 2,382 8,863 Water and Sewer GO Bonds Notes Payable $ 1,256 1,251 1,251 1,259 1,260 1,249 1,236 1,226 1,214 11,202 $ 1,034 1,848 1,813 1,778 1,034 1,034 1,034 1,034 1,034 1,034 667 13,344 Revenue Bonds/ Obligations $ 22,528 22,532 22,530 22,526 22,526 22,528 22,530 22,524 22,530 22,524 22,529 22,527 22,528 23,661 23,659 23,652 23,656 16,491 12,758 416,739 Principal 39,030 42,463 44,751 46,554 48,423 236,801 218,051 203,243 144,331 74,986 $ 1,098,633 2,042 2,298 143,599 774,766 7,637 $ 9,160 $ 11,046 $ 273,140 $ 1,098,633 Interest 55,731 54,144 52,344 50,426 48,378 207,059 151,580 96,570 46,463 12,071 $ 774,766 $ $ 60 94,763 96,607 97,095 96,980 96,801 94,003 90,458 88,387 88,329 82,683 78,999 78,377 75,638 68,310 68,307 68,300 68,310 61,143 57,412 44,648 44,647 44,649 44,648 29,946 26,903 21,767 21,764 21,765 21,760 1,873,399 1,226 The following table discloses the debt service requirements as of June 30, 2009, 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 2010 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2038 Total Total $ Total 94,761 96,607 97,095 96,980 96,801 443,860 369,631 299,813 190,794 87,057 $ 1,873,399 $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) K. New bonds On October 1, 2008, the City issued $199,750 in Western Loop 101 Public Facilities Corporation taxable and tax-exempt third lien subordinate excise tax revenue bonds to fund the acquisition and construction of a new spring training baseball facility for Major League Baseball and infrastructure. The bonds mature on various dates starting 2017 through 2038 with various interest rates of 5.00% to 7.50%. The bonds are not general obligations of the city, but are a limited obligation of the Corporation and the City, and are payable solely from and secured by a pledge of the City’s unrestricted excise taxes. 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, 2009, calculated below, represents the cumulative amount reported to date based on the use of estimated capacity of the landfill. Due to change in master plan, the south cell capacity decreased from 22,594 to 21,666 in fiscal year 2009. North Cell Capacity (cubic yards) Capacity used to date Percentage of capacity used South Cell 32,100 - 21,666 18,126 84% Total closure and post-closure costs in present dollars: as of June 30, 2009 as of June 30, 2008 $ $ 15,676 15,500 $ $ Closure and post-closure care costs: Amount remaining to be recognized as of June 30, 2009 $ 15,676 $ 2,398 Liability recognized as of June 30, 2009 $ - $ 12,281 14,679 14,514 These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year 2008-09. 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 41 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. 61 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) XI. Interfund transactions A. Interfund receivables Interfund balances at June 30, 2009, consisted of the following: Due To Major governmental funds: General Western Loop 101 Public Facilities Corporation construction fund $ Non-major governmental funds: Community development block grants fund Police and fire construction Municipal Property Corporation debt service Non-major enterprise funds: Landfill fund Sanitation fund Housing fund Total $ Due From 3,967 - $ 97 - 337 1,294 2,162 1,189 5,156 1,189 77 5,156 $ The interfund balances at June 30, 2009, 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, 2009, are expected to be repaid within one year, except sanitation and landfill funds which are to be repaid over five years. The remainder of this page left blank intentionally. 62 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) B. Interfund transfers Interfund transfers for the year ended June 30, 2009, consisted of the following: Transfers to general fund from: Transportation fund Non-major governmental funds Fire and police construction fund Parks bond construction fund Other construction fund Water and sewer enterprise fund Total transfers to general fund $ 107 316 1 140 53 617 Transfer to transportation fund from: General fund Non-major governmental funds Other contruction fund Total transfer to transporation fund 247 1,147 Transfer to non-major special revenue fund from: General fund Total transfer to non-major special revenue fund 1,591 1,591 900 Transfers to non-major debt service funds from: General fund Transportation fund Non-major governmental funds Highway users gas tax fund Other special revenue fund Total transfers to non-major debt service funds Transfer to non-major enterprise funds from: General fund Total transfer to non-major enterprise funds Grand total all transfers 2,501 8,329 3,707 4,022 18,559 604 604 $ 22,518 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. 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 2009 that were either non-routine in nature or inconsistent with the activities of the fund making the transfer. 63 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. There are no outstanding encumbrances as of June 30, 2009. 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, 2009, the City recognized a loss of $2,013. 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, 2009, (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 63,642 900,813 964,455 53,259 911,196 173,417 (67,878) 105,539 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Calculation of the City’s equity: City’s share of SROG equity (Total equity of $911,196 plus unrealized loss of $2,153 less assets not owned by the City of $161,103 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 $ 64,618 $ 2,729 411 67,758 $ $ 6,630 (2,013) 4,617 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). 200 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. 53 Reserved for court security Security surcharges collected by the City Court are required by ordinance to be spent solely on court security. 29 65 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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). $ 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. 41 276 Reserved for public safety training facility This is a training center that was built with partners to provide fire and police departments with the tools required to train fire and police personnel and conduct continuing education. 69 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. 3,552 Reserved for vehicle/equipment replacement For future scheduled replacement of existing equipment and vehicles. 6,230 Total reserved for general fund type $ 10,450 Designated for computer replacement For future schedule replacement of existing personal computers. $ 3,662 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. 254 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. 79 Designated for other public facilities projects To operate and improve equipment and personal property by Western Loop 101 Public Facilities Corporation for spring training baseball facility. 8,372 Designated for telephone For payment of future telephone charges and maintenance. 403 $ Total designated for general fund type 66 12,770 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (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 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: City-wide parks City-wide recreation facilities City-wide 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 97 132 1,405 268 79 152 46 1,716 44 3,290 620 1,561 4,257 (30) 13,540 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 2,478 221 2,699 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. 167 Total reserved for special revenue fund type $ 16,503 NON-MAJOR GOVERNMENTAL FUNDS Designated for home program For community development block grant home program activities. $ 82 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. Total designated for special revenue fund type 67 446 $ 528 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. Western Loop 101 Public Facilities Corporation debt services General obligation debt service (major fund) Municipal Property Corporation Highway users $ 38,533 22,658 157 130 Total reserved for debt service fund type $ 61,478 Capital Projects Fund Type NON-MAJOR GOVERNMENTAL FUNDS Reserved for capital projects Certain assets have been reserved for repairs to historical Sahuaro Ranch and Manistee Ranch. $ 466 Total reserved for capital projects fund type $ 466 Designated for street GO 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. $ 4,895 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. 255 Designated for economic development Accounts for GO 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. 305 Designated for open space/trails Accounts for GO 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. 956 $ 6,411 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. 169 Total designated for capital projects fund type 68 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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. 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. 10,649 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 433 12,272 NON-MAJOR PROPRIETARY FUNDS Net assets held by the housing fund may only be used for that purpose. 977 $ 13,249 Permanent Fund Type NON-MAJOR GOVERNMENTAL FUNDS Reserved for cemetery perpetual care Funds are reserved by ordinance for future cemetery maintenance and operational expenses. $ 5,519 Total reserved for permanent fund type $ 5,519 Total restricted for enterprise fund type XVI. 1,021 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 retirement benefits are generally paid at a percentage, based on years of service, of the retiree’s average compensation. Long-term disability benefits vary by circumstance, but generally pay a percentage of the employee’s monthly compensation. Health insurance premium benefits are generally paid as a flat dollar amount per month towards the retiree’s health care insurance premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or her dependents. The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined benefit pension plan; a cost-sharing multiple-employer defined benefit health insurance premium plan; and a cost-sharing multiple-employer defined benefit long-term disability plan that covers employees of the State of Arizona and employees of participating political subdivisions and school districts. 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 69 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) 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 and a cost-sharing multiple-employer defined benefit health insurance premium plan that covers State of Arizona and City elected officials and judges, and elected officials of participating cities. The EORP is administered by The Fund Manager of PSPRS according to the provisions of ARS Title 38, Chapter 5, Article 3. Because the health insurance premium plan benefit of the EORP is not established as a formal trust, it is reported in accordance with GASB Statement No. 45 as an agent multiple-employer plan. Accordingly, the disclosures that follow reflect the EORP as if it were an agent multiple-employer plan. 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, 2009, active ASRS members and the City were each required by statute to contribute at the actuarially determined rate of 9.45% (7.90% for retirement, 1.05% for health insurance premiums, 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, 2009, 2008, and 2007 were $14,595, $14,420, and $12,697, respectively, which were equal to the required contributions for the year. Agent Plans. For the year ended June 30, 2009, 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 19.75% and 21.15% for Fire and Police, respectively. The health insurance premium portion of the contribution rate for fire members was actuarially set at 3.85 percent of covered payroll. 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 28.00% 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, 2009, 2008, and 2007 were $88, $69, and $59, respectively, which were equal to the required contributions for the year. Annual Pension Cost (APC). Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plans and the annual required contributions are subject to continual revision as actual results are compared to past expectations and new estimates are made. The required schedule of funding progress presented as required supplementary information provides multi-year trend information that shows whether the actuarial value of the plans’ assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. 70 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) Projections of benefits are based on 1) the plans as understood by the City and plans’ members and include the types of benefits in force at the valuation date, and 2) the pattern of sharing benefit costs between the City and plans’ members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The City’s pension cost for Fire and Police for the year ended June 30, 2009, the date of the most recent available actuarial valuation, and related information follow. Fire Police Contribution rates: City Plan members 18.28% 7.65% 20.68% 7.65% Annual pension cost $3,096 $6,268 Projected unit credit Projected unit credit 8.50% 5.50% - 8.50% 5.50% 8.50% 5.50% - 8.50% 5.50% Level % closed for unfunded actuarial accrued liability, open for excess Level % closed for unfunded actuarial accrued liability, open for excess 27 years for unfunded actuarial accrued liability, 20 years for excess 27 years for unfunded actuarial accrued liability, 20 years for excess 7 year smoothed market value 7 year smoothed market value Actuarial cost method Actuarial assumptions: Investment rate of return Projected salary increases* Includes inflation at* Amortization method Remaining amortization period Asset valuation method * Does not include payroll of members participating in the deferred retirement option plan (if any). 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, 2009, follows. Contributions required and contributions made Year Ended June 30 Police 2009 2008 2007 Fire 2009 2008 2007 Percentage of APC Contributed APC Net Pension Obligation $ $ $ 6,303 4,132 3,270 100.0 % 100.0 % 100.0 % $ $ $ - $ $ $ 3,921 2,897 1,812 100.0 % 100.0 % 100.0 % $ $ $ - Includes insurance premium tax, where applicable. 71 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) E. Required supplementary information Funded status. The funded status of the PSPRS plans as of the most recent valuation date, June 30, 2009, along with the actuarial assumptions and methods used in those valuations follow. For this valuation, which was prior to the implementation of GASB Statement Nos. 43 and 45, the pension and health insurance benefit amounts were aggregated. In future years when GASB Statement Nos. 43 and 45 measurements are made and reported, these benefits will be disaggregated and reported separately. The EORP, by statute, is a cost-sharing plan. However, because of its statutory construction, in accordance with GASB Statement No. 43, paragraphs 5 and 41, the EORP is reported for such purposes as an agent multiple-employer plan. The Fund Manager obtains an actuarial valuation for the EORP on its statutory basis as a cost-sharing plan and, therefore, actuarial information for the City as a participating government, is not available. Analysis of funding progress excluding health insurance subsidy beginning June 30, 2009: Valuation Date June 30 Police 2009 2008 2007 Valuation Date June 30 Fire 2009 2008 2007 XVII. Actuarial Value of Plan Assets $ $ $ 85,636 79,540 75,860 Actuarial Accrued Liability $ $ $ Actuarial Value of Plan Assets $ $ $ 69,763 63,615 58,882 133,674 129,649 128,670 Funding Liability (Excess) $ $ $ Actuarial Accrued Liability $ $ $ 86,316 85,494 83,023 48,038 50,109 52,810 Funding Liability (Excess) $ $ $ 16,553 21,879 24,141 Annual Covered Payroll Funded Ratio 64.1% 64.1% 59.0% $ $ $ Annual Covered Payroll Funded Ratio 80.8% 74.4% 70.9% 29,546 27,904 25,375 $ $ $ 17,179 18,592 16,029 Unfunded Liability as Percentage of Covered Payroll 162.6% 179.6% 208.1% Unfunded Liability as Percentage of Covered Payroll 96.4% 117.7% 150.6% Other Post-Employment Benefits (OPEB) A. Plan description The City of Glendale post-employment healthcare plan is a single-employer defined benefit plan administered by the City of Glendale. The plan provides medical, dental, and vision coverage for eligible retirees and their dependents. Retirees can also continue their basic life insurance benefit. The Mayor and Council have authority each budget year to establish, eliminate, or amend benefit provisions through the annual budget process. A separate report is not provided as the plan financial information is included in the governmental-wide basis and proprietary funds as part of the City of Glendale reporting entity. B. Funding policy The City pays for and reports retiree benefits on a pay as you go basis, which is the practice of paying for these benefits as they become due each year. Contributions to the plan by retirees are established at the beginning of each fiscal year through the annual budget process. For the fiscal year ending June 30, 2009, and June 30, 2008, a total amount of $2,930 and $2,812 was contributed to the plan by active retirees, respectively, in the form of current premiums of which $4,509 and $4,135 was paid out for 72 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) retirees, respectively, in the form of current premiums of which $4,509 and $4,135 was paid out for retiree costs, respectively. The required contributions were 2.68% and 2.57% of covered payroll respectively. C. Annual OPEB cost and net OPEB obligation The City of Glendale’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), and amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and any changes in the net OPEB obligation as of June 30, 2009. Normal cost Minimum amortization of unfunded actuarial liability (UAL) Interest adjustment to year end Annual required contribution $ 6,987 3,617 424 11,028 ARC adjustment Interest adjustment to net obligation OPEB cost (346) 388 11,070 Contributions made Net OPEB obligation beginning of year Net OPEB obligation end of year (1,579) 9,694 19,185 $ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2008, the transition year, and 2009 are as follows: Fiscal Year 2008 2009 Annual OPEB Cost $11,017 11,070 Percentage of Annual OPEB Cost Contributed 10.07% 10.11 D. Funding status The City’s funding status for OPEB is as follows: Actuarial valuation date Actuarial value of assets Actuarial accrued liability UAL Funded ratio Annual covered payroll Ratio of UAL to annual covered payroll July 1, 2007 $ $ 101,281 $ 101,281 -% $ 109,391 92.6% E. Actuarial methods and assumptions Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in 73 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2009 (amounts expressed in thousands) actuarial accrued liabilities and actuarial value of assets, consistent with the long-term perspective of the calculations. For the July 1, 2007, actuarial valuation the actuarial cost method used is the entry age normal method. A 4.00% pay as you go discount rate and a 3.50% rate increase for annual payroll was used. No actuarial valuation of assets was done as there were no assets at the valuation date. The amortization method is level percent of payroll amortized over 30 years and the period is open. The healthcare cost trend rate used in the actuarial assumptions averaged 7.25% for the medical and dental plans for the 2008-09 fiscal year. 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. 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 The Phoenix Coyotes of the National Hockey League (NHL) are the anchor tenant in the City owned Jobing.com arena. The owner of the Coyotes, Jerry Moyes, filed for bankruptcy on May 5, 2009. After a lengthy battle in court, and the failed bid of a buyer who wanted to move the team to Canada, the NHL bought the Coyotes on November 3, 2009. The NHL is currently looking to sell the team to a candidate that is dedicated to keeping the team in Glendale and making the franchise a profitable venture. Since the team moved to its home in Glendale, attendance has been solid. The NHL and the City of Glendale are both committed to keeping the team here and working with the new owners. Since the opening of the arena in December 2003, it has hosted some of the biggest names in entertainment including Bon Jovi, Bruce Springsteen, Christina Aguilera, The Eagles, Elton John, Faith Hill & Tim McGraw, Hannah Montana, Madonna, Mannheim Steamroller, Paul McCartney, The Rolling Stones, Stevie Wonder, Tom Petty & the Heartbreakers, U2 and Van Halen. Westgate City Center, the development of restaurants and retail shopping next to the arena, has flourished since its opening. Westgate City Center is home to AMC theaters, The Yard House and Margaritaville. In December 2009, the City will issue $43 million in general obligation bonds. The proceeds will be used to fund several projects in parks, public safety, flood control and government facilities. The bonds will be repaid by the City’s secondary property tax. The bonds will be sold as “Build America Bonds,” under The Recovery and Reinvestment Act of 2009, in which the federal government reimburses 35% of the interest cost of the bonds. 74 City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ REQUIRED SUPPLEMENTARY INFORMATION (other than MD&A) ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. City of Glendale, Arizona Budgetary Comparison Schedule General Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) 1 of 2 Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income (loss) Proceeds from disposal of assets 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, 2009 $ Final 54,797 $ 54,797 Variance with Final Budget Positive (Negative) Actual Amounts (budgetary basis) $ 69,135 $ 14,338 71,905 11,577 69,407 30,470 4,008 1,208 268 3,913 192,756 3,174 (19,917) 230,810 60,316 8,652 70,046 29,432 4,188 587 303 2,210 175,734 3,174 (19,917) 213,788 58,761 9,006 64,710 29,777 4,031 1,679 290 2,153 170,407 4,151 (9,130) 234,563 (1,555) 354 (5,336) 345 (157) 1,092 (13) (57) (5,327) 977 10,787 20,775 38,689 88,205 27,868 35,301 658 791 14,057 2,383 39,264 87,406 27,179 34,255 362 868 17,952 2,481 32,445 82,778 24,479 26,989 365 841 1,624 6,819 4,628 2,700 7,266 (3) 27 17,952 857 1,729 1,096 11,656 222,433 1,729 535 11,117 223,148 2,400 505 5,757 178,183 (671) 30 5,360 44,965 8,377 $ (9,360) $ 56,380 $ 65,740 (Continued) 75 City of Glendale, Arizona Budgetary Comparison Schedule (continued) General Fund For the Fiscal Year Ended June 30, 2009 (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. 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. Market adjustment on restricted investments not available for appropriation. Internal charges for services provided. Proceeds from disposal of assets. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining 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: Capital outlay funded by long-term debt. Internal charges for services provided. Total expenditures as reported in the combining 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 $ 234,563 (69,135) (249) (22,644) (290) (4,151) 9,130 $ 147,224 $ 178,183 25 (21,916) $ 156,292 City of Glendale, Arizona Budgetary Comparison Schedule Transportation Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 73,960 Final $ 73,960 Actual Amounts (budgetary basis) $ 71,962 Variance with Final Budget Positive (Negative) $ (1,998) RESOURCES (INFLOWS): Taxes Intergovernmental Charges for services Investments Proceeds from disposal of assets Long-term debt issued Fines and forfeitures Miscellaneous revenues Total revenues Add: Transfers in Less: Transfers out Amounts available for appropriation 24,852 1,809 107 1,167 11,000 38,584 77,519 11,446 (19,561) 143,364 20,000 1,040 155 2,260 1,316 24,771 11,446 (19,561) 90,616 20,875 2,581 131 1,939 12 33 1,000 26,571 2,188 (9,477) 91,244 875 1,541 (24) (321) 12 33 2,316 1,800 (9,258) 10,084 628 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Community services Capital outlay Total charges to appropriations 20,588 119,385 139,973 20,103 119,183 139,286 12,352 28,063 40,415 7,751 91,120 98,871 Budgetary fund balance, June 30, 2009 $ 3,391 $ (48,670) $ 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. Proceeds from disposal of assets. Unrealized investment income. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining 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: Salaries payable. Total expenditures as reported in the combining 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 50,829 $ 99,499 $ 91,244 (71,962) (12) (656) (2,188) 9,477 $ 25,903 $ 40,415 58 $ 40,473 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2009 (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 Budget and Management 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 except the Western Loop 101 Public Facilities Corporation. 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, 2009 This page left blank intentionally. City of Glendale, Arizona Budgetary Comparison Schedule General Obligation Debt Service Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Taxes Miscellaneous 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, 2009 $ 14,111 Final $ 14,111 Actual Amounts (budgetary basis) $ 14,056 Variance with Final Budget Positive (Negative) $ (55) 29,814 29,814 43,925 29,814 29,814 43,925 29,054 195 29,249 43,305 340 340 14 326 12,153 8,579 21,072 12,153 8,579 21,072 12,153 8,579 20,746 326 22,853 $ 22,853 $ 22,559 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. Miscellaneous revenues Total revenues as reported in the combining 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 combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 79 (760) 195 (565) (620) $ $ (294) 43,305 (14,056) (195) $ 29,054 $ 20,746 $ 20,746 This page left blank intentionally. 80 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. Police and Fire Sales Tax Fund This fund accounts for police and fire activities funded by a .5 percent sales tax levied directly by voter initiative. 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 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. Western Loop 101 Public Facilities Debt Service Fund This fund accumulates monies for payment of debt service to the Western Loop 101 Public Facilities Corporation’s bond holders. 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. 81 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. Transportation Debt Service This fund accumulates monies for payment of the transportation revenue bonds. Transportation excise taxes are transferred from a revenue fund to fund this debt. 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). Municipal Property Corporation Construction Fund This 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. Streets Construction Fund This fund accounts for the construction of streets, sidewalks, streetlights, traffic signals, and street landscaping funded through GO 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 GO bonds issued under authorizations approved by voters on March 10, 1987, and November 2, 1999. Parks Bond Construction Fund This 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 GO 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 Fund 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 Fund This fund is used to account for the revenues received by the City from the sale of cemetery lots and other related services. 82 This page left blank intentionally. 83 City of Glendale, Arizona Combining Balance Sheet Non-Major Governmental Funds June 30, 2009 (amounts expressed in thousands) Debt Service Funds Western Loop 101 Special Revenue Funds 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 for (Note XV): Inventory Development impact fees Drug enforcement Garden for visually impaired Cultural facility projects Cemetery Debt service Unreserved: Designated for (Note XV): Home program Pool/park repair Street capital projects Other capital projects Undesignated Total fund balances Total liabilities and fund balances Police and Community Highway Development Development Users Impact Fire Block Grants Gas Tax Fees Sales Tax $ 41 $ 2 802 2 3,590 4,437 $ $ 387 34 5 337 3,590 4,353 $ 1,656 $ 1,314 98 3,068 $ 320 68 388 $ 13,617 $ 13,617 $ 77 77 Other $ 2,099 $ 1,486 32 3,617 $ 449 84 533 $ 3,205 $ 1,432 1,969 1 6,765 4,986 18,358 $ 922 10 8 5 7 13,387 14,339 Public Facilities Highway Corporation Users $ - $ 47,243 47,243 $ 8,710 8,710 $ 4,263 $ 4,263 $ 563 3,570 4,133 - 97 - 13,540 - - 2,699 167 - 38,533 130 82 2 84 4,437 2,583 2,680 3,068 13,540 13,617 3,084 3,084 3,617 446 707 4,019 18,358 38,533 47,243 130 4,263 $ 84 $ $ $ $ $ Debt Service Funds (cont.) Municipal Municipal Property Corporation $ 292 $ 16,210 16,502 $ $ 74 2,162 7,534 6,575 16,345 Transportation $ 4,936 $ 4,936 $ 2,391 2,545 4,936 Permanent Fund Capital Project Funds Fire and Parks Cemetery Total Non-Major Property Corp Streets Police Bond Other Perpetual Governmental Construction Construction Construction Construction Construction Care Funds $ 534 $ 5,253 $ 350 $ 4,249 $ 7,489 $ 421 955 $ 22 5,275 $ 350 $ 4,249 $ 30 147 2 7,668 $ 14 14 $ 65 60 125 $ 2,062 220 1,294 3,576 $ 815 138 953 $ 249 13 22 284 $ 5,519 $ 78 5,597 $ 78 78 $ 53,503 $ 2,998 52 4,232 135 70,639 8,576 140,135 $ 5,434 10 405 165 5 3,793 7 19,198 17,137 12,690 58,844 157 - - - - - 466 - 5,519 - 97 13,540 2,699 167 466 5,519 38,820 157 16,502 4,936 941 941 955 5,150 5,150 5,275 (3,226) (3,226) 350 3,296 3,296 4,249 1,261 5,657 7,384 7,668 5,519 5,597 82 446 5,150 1,261 13,044 81,291 140,135 $ $ $ $ $ 85 $ $ $ 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, 2009 (amounts expressed is thousands) Special Revenue Funds Debt Service Funds Western Police REVENUES Taxes and special assessments Licenses and permits Intergovernmental Charges for services Investments Miscellaneous Total revenues Community Highway Development and Loop 101 Development Users Impact Fire Public Facilites Highway Block Grants Gas Tax Fees Sales Tax Corporation Users $ 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 expenditures $ 1,497 388 1,885 $ 18,801 18,801 $ 2,628 6,398 2,617 87 1,121 12,851 $ - $ - 61 - 15,056 - 853 3,711 99 3,018 491 6 - 2 144 2,766 35 3 15 11,111 2,181 189 5,263 7,694 414 15,470 1,976 10,154 8,710 8,710 3,570 1,126 4,698 3,464 (5,809) 3,331 2,697 (8,710) (4,698) 1,591 (4,022) (2,431) 47,243 47,243 4,707 4,707 38,533 9 43 (3,707) (3,664) (43) $ $ 11,058 - - Excess (deficiency) of revenues and other sources over Net change in fund balances 14,539 36 14,575 2,622 - (43) OTHER FINANCING SOURCES (USES) Long-term debt issued Proceeds from equipment disposal Transfers in Transfers out Total other financing sources and uses Fund balances, July 1 Fund balances, June 30 2,616 107 2,723 Other 127 84 - (200) $ 2,880 2,680 86 - (5,809) $ 19,349 13,540 3,331 $ (247) 3,084 266 $ 3,753 4,019 $ 38,533 $ 121 130 Debt Service Funds (cont.) Capital Projects Funds Fire Municipal Municipal Property Corporation $ 27 27 Transportation $ Total and Parks Cemetery Non-Major Property Corp Streets Police Bond Other Perpetual Governmental Construction Construction Construction Construction Construction Care Funds $ $ $ $ $ 25 25 199 199 350 38 388 11 11 448 186 2,392 3,026 $ 121 121 $ 21,429 1,497 24,351 2,617 1,082 3,656 54,632 18 2 - 3 2 - 1,747 - 2 25 - 4 9 - - 916 20,514 128 3,030 3,113 11,060 28 6,575 15,665 22,258 2,545 4,782 7,329 930 930 11,476 11,481 16,303 18,050 4,823 4,850 211 12 7,667 7,903 - 15,117 30,487 49,011 133,404 (22,231) (7,329) (905) (11,282) (17,662) (4,839) (4,877) 121 (78,772) 6,523 6,523 7,329 7,329 - - (316) (316) (1) (1) (387) (387) - 47,243 43 20,150 (8,433) 59,003 - (905) (11,282) (17,978) (4,840) (5,264) 121 (19,769) (15,708) $ - Permanent Fund 15,865 157 $ - $ 1,846 941 $ 16,432 5,150 $ 14,752 (3,226) 87 $ 8,136 3,296 $ 12,648 7,384 $ 5,398 5,519 $ 101,060 81,291 City of Glendale, Arizona Budgetary Comparison Schedule Community Development Block Grants Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 69 Actual Amounts (budgetary basis) Final $ 69 $ 131 Variance with Final Budget Positive (Negative) $ 62 RESOURCES (INFLOWS): Intergovernmental Miscellaneous Total revenues Amounts available for appropriation 4,590 4,590 4,659 2,703 2,703 2,772 2,616 107 2,723 2,854 (87) 107 20 82 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Community environment Captial Outlay Total charges to appropriations 4,512 4,512 3,739 3,739 2,621 144 2,765 1,118 (144) 974 Budgetary fund balance, June 30, 2009 $ 147 $ (967) $ 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. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balance - governmental funds. Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 88 89 $ 1,056 $ 2,854 (131) $ 2,723 $ 2,765 1 $ 2,766 City of Glendale, Arizona Budgetary Comparison Schedule Highway Users Gas Tax Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Intergovernmental Proceeds from asset disposal Miscellaneous Total revenues 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, 2009 Final 3,474 $ 3,474 Actual Amounts (budgetary basis) $ 3,266 Variance with Final Budget Positive (Negative) $ (208) 17,616 17,616 (3,707) 17,383 14,100 14,100 (3,707) 13,867 14,539 43 36 14,618 (3,707) 14,177 17,298 47 16,395 45 11,093 15 5,302 30 35 3 17,383 35 3 16,478 35 3 11,146 5,332 $ - $ (2,611) $ 3,031 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. Proceeds from disposal of assets. Add: Transfers out. Total revenues as reported in the combining 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: Salaries payable. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 89 439 43 36 518 310 $ 5,642 $ 14,177 (3,266) (43) 3,707 $ 14,575 $ 11,146 (35) $ 11,111 City of Glendale, Arizona Budgetary Comparison Schedule Development Impact Fees Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Final 20,073 $ 20,073 Actual Amounts (budgetary basis) $ 19,350 Variance with Final Budget Positive (Negative) $ (723) RESOURCES (INFLOWS): Licenses and permits Investments Total revenues Less: Transfers out Amounts available for appropriation 5,687 176 5,863 (49) 25,887 1,914 357 2,271 (49) 22,295 1,497 388 1,885 21,235 (417) 31 (386) 49 (1,060) CHARGES TO APPROPRIATIONS (OUTFLOWS): General administration Public safety Community services Capital outlay Principal retirement Interest expense Total charges to appropriations 1,045 2,600 6,071 13,800 2,181 189 25,886 1,118 2,600 6,985 13,485 2,181 189 26,558 61 5,263 2,181 189 7,694 1,057 2,600 6,985 8,222 18,864 Budgetary fund balance, June 30, 2009 $ 1 $ (4,263) $ 13,541 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. Total revenues as reported in the combining 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: Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 90 $ 17,804 $ 21,235 (19,350) $ 1,885 $ 7,694 $ 7,694 City of Glendale, Arizona Budgetary Comparison Schedule Police and Fire Sales Tax Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 1,187 Final $ 1,187 Actual Amounts (budgetary basis) $ 42 Variance with Final Budget Positive (Negative) $ (1,145) RESOURCES (INFLOWS): Taxes Capital lease proceeds Total revenues Amounts available for appropriation 23,782 500 24,282 25,469 18,961 500 19,461 20,648 18,801 18,801 18,843 (160) (500) (660) (1,805) CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Public safety Capital outlay Total charges to appropriations 23,378 1,624 25,002 19,517 603 20,120 14,940 414 15,354 4,577 189 4,766 Budgetary fund balance, June 30, 2009 $ 467 $ 528 $ 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. Total revenues as reported in the combining 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: Salaries payable. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 91 3,489 $ 2,961 $ 18,843 (42) $ 18,801 $ 15,354 116 $ 15,470 City of Glendale, Arizona Budgetary Comparison Schedule Other Special Revenue Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 3,314 Final $ 3,314 Actual Amounts (budgetary basis) $ 3,819 Variance with Final Budget Positive (Negative) $ 505 RESOURCES (INFLOWS): Taxes Intergovernmental Charges for services Investments Lease proceeds Miscellaneous Total revenues Add: Transfers in Less: Transfers out Amounts available for appropriation 1,795 934 5,375 10 15,223 23,337 1,872 (5,307) 23,216 1,795 510 5,755 46 12 10,770 18,888 1,872 (5,307) 18,767 2,628 6,399 2,617 92 1,121 12,857 1,590 (4,022) 14,244 833 5,889 (3,138) 46 (12) (9,649) (6,031) (282) 1,285 (4,523) CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: General government Public safety Public works Community services Community environment Miscellaneous Capital outlay Total charges to appropriations 941 9,034 177 4,010 525 277 5,785 20,749 885 9,804 158 4,250 525 277 4,307 20,206 858 3,718 99 3,013 490 6 1,976 10,160 27 6,086 59 1,237 35 271 2,331 10,046 Budgetary fund balance, June 30, 2009 $ 2,467 $ (1,439) $ 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. Accrued interest. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining 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: Salaries payable. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 92 4,084 $ 5,523 $ 14,244 (3,819) (6) (1,590) 4,022 $ 12,851 $ 10,160 (6) $ 10,154 City of Glendale, Arizona Budgetary Comparison Schedule Highway Users Debt Service Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 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, 2009 Actual Amounts (budgetary basis) Final - $ - $ (6) Variance with Final Budget Positive (Negative) $ (6) 4,707 4,707 4,707 4,707 51 51 4,707 4,752 51 51 45 11 11 2 9 3,570 1,126 4,707 3,570 1,126 4,707 3,570 1,126 4,698 9 $ - $ - $ 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. Miscellaneous revenues Less: Transfers in. Total revenues as reported in the combining 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: Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 93 54 $ 54 $ 4,752 6 (51) (4,707) $ - $ 4,698 $ 4,698 City of Glendale, Arizona Budgetary Comparison Schedule Municipal Property Corporation Debt Service Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Investments Miscellaneous revenues 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, 2009 $ 12,643 Actual Amounts (budgetary basis) Final $ 12,643 $ 12,643 25 1,312 1,337 18,667 32,647 22 1,312 1,334 18,667 32,644 17 19 36 6,523 19,202 20 20 - 6,370 12,879 19,269 6,370 12,879 19,269 6,575 12,637 19,212 13,378 $ 13,375 $ 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. Market adjustment on restricted investments not available for appropriation. Less: Transfers in. Total revenues as reported in the combining 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: Other financing uses on bond refunding. Interest. Arbitrage rebate. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 94 (10) Variance with Final Budget Positive (Negative) $ - (5) (1,293) (1,298) (12,144) (13,442) 20 (205) 242 57 $ (13,385) $ 19,202 (12,643) (9) (6,523) $ 27 $ 19,212 3,028 18 $ 22,258 City of Glendale, Arizona Budgetary Comparison Schedule Transportation Debt Service Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Add: Transfers in Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Miscellaneous Debt service: Principal Interest Total charges to appropriations Budgetary fund balance, June 30, 2009 Actual Amounts (budgetary basis) Final - $ - $ - 7,327 7,327 7,327 7,327 7,329 7,329 - - 2 2,545 4,782 7,327 2,547 4,782 7,329 2,545 4,782 7,329 $ - $ (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. 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. Less: Transfers in. Total revenues as reported in the combining 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 combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 95 - Variance with Final Budget Positive (Negative) $ - 2 2 (2) 2 $ 2 $ 7,329 (7,329) $ - $ 7,329 $ 7,329 City of Glendale, Arizona Budgetary Comparison Schedule Municipal Property Corporation Construction Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Variance with Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Final 1,018 $ 1,018 Final Budget Amounts Positive (budgetary basis) (Negative) $ 1,846 $ 828 RESOURCES (INFLOWS): Investment income - 24 25 Total revenues - 2,009 25 1 - 17 1,871 812 Operating transfer out (17) Amounts available for appropriation (17) 1,035 3,044 1 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: General administrative 437 437 - 437 Capital outlay 564 1,147 930 217 1,001 1,584 930 654 Total charges to appropriations Budgetary fund balance, June 30, 2009 $ 34 $ 1,460 $ 941 $ 1,466 $ 1,871 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. (1,846) Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 25 $ 930 $ 930 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 96 City of Glendale, Arizona Budgetary Comparison Schedule Streets Construction Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Variance with Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Final 17,118 $ 17,118 $ Final Budget Amounts Positive (budgetary basis) (Negative) 16,386 $ (732) RESOURCES (INFLOWS): Investments Long-term debt issued Total revenues Less: Transfers out 70 118 222 9,401 - - - 9,471 118 222 104 (70) - (4,251) 26,519 17,166 16,608 (558) Community services 1,256 2,217 3 2,493 Street maintenance 2,800 9,894 2 9,892 22,463 14,324 11,476 2,848 26,519 26,435 11,481 14,954 Amounts available for appropriation (70) 104 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Capital outlay Total charges to appropriations Budgetary fund balance, June 30, 2009 $ - $ (9,269) $ 5,127 $ 14,396 $ 16,608 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. (16,386) Market adjustment on restricted investments not available for appropriation. (23) Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 199 $ 11,481 $ 11,481 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 97 City of Glendale, Arizona Budgetary Comparison Schedule Fire and Police Construction Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Variance with Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Final 14,735 $ 14,735 Final Budget Amounts Positive (budgetary basis) (Negative) $ 14,681 $ (54) RESOURCES (INFLOWS): Intergovernmental revenue - - 350 Investments - 114 109 46,606 - - - 46,606 114 459 345 Long-term debt issued Total revenues Less: Transfers out (254) Amounts available for appropriation (254) 61,087 350 (5) (316) 14,595 (62) 14,824 229 CHARGES TO APPROPRIATIONS (OUTFLOWS): Public safety 4,775 5,011 1,747 3,264 Capital outlay 56,312 60,604 16,303 44,301 61,087 65,615 18,050 47,565 Total charges to appropriations Budgetary fund balance, June 30, 2009 $ - $ (51,020) $ (3,226) $ (47,794) $ 14,824 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. (14,681) Market adjustment on restricted investments not available for appropriation. (71) Add: Transfers out. 316 Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 388 $ 18,050 $ 18,050 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 98 City of Glendale, Arizona Budgetary Comparison Schedule Parks Bond Construction Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Variance with Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Final 8,239 $ 8,239 Final Budget Amounts Positive (budgetary basis) (Negative) $ 8,116 $ (123) RESOURCES (INFLOWS): Investments Long-term debt issued Total revenues Less: Transfers out - 47 32 4,434 - - 4,434 47 32 (72) Amounts available for appropriation (72) (15) (15) (1) 71 12,601 8,214 8,147 (67) 3,522 3,522 2 - - 25 9,079 10,219 4,823 5,396 12,601 13,741 4,850 8,891 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: General administration Public works Capital outlay Total charges to appropriations Budgetary fund balance, June 30, 2009 $ - $ (5,527) $ 3,297 3,520 (25) $ 8,824 $ 8,147 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. (8,116) Market adjustment on restricted investments not available for appropriation. (21) Add: Transfers out. 1 Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 11 $ 4,850 $ 4,850 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 99 City of Glendale, Arizona Budgetary Comparison Schedule Other Construction Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Variance with Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Final 12,649 $ 12,649 Final Budget Amounts Positive (budgetary basis) (Negative) $ 12,594 $ (55) RESOURCES (INFLOWS): Intergovernmental Investments Long-term debt issued 786 1,033 448 (585) 16 111 206 95 36,065 - - - - 9,808 2,392 (7,416) 36,867 10,952 3,046 (7,906) Miscellaneous Total revenues Less: Transfers out (213) Amounts available for appropriation (213) 49,303 23,388 (387) (174) 15,253 (8,135) CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Community services 3,120 24,213 13 24,200 46,183 26,083 7,667 18,416 Principal - - 211 Interest - - 12 49,303 50,296 7,903 Capital outlay Total charges to appropriations Budgetary fund balance, June 30, 2009 $ - $ (26,908) $ 7,350 (211) (12) 42,393 $ 34,258 $ 15,253 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. (12,594) Market adjustment on restricted investments not available for appropriation. (20) Add: Transfers out. 387 Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 3,026 $ 7,903 $ 7,903 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 100 City of Glendale, Arizona Budgetary Comparison Schedule Cemetery Perpetual Care Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ Actual Amounts (budgetary basis) Final 5,276 $ 5,276 $ 5,398 RESOURCES (INFLOWS): Investments Total revenues Amounts available for appropriation 106 106 5,382 142 142 5,418 121 121 5,519 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Public works Total charges to appropriations 5,382 5,382 5,382 5,382 - Budgetary fund balance, June 30, 2009 $ - $ 36 $ 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. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. 101 5,519 Variance with Final Budget Positive (Negative) $ 122 (21) (21) 101 5,382 5,382 $ 5,483 $ 5,519 (5,398) $ 121 This page left blank intentionally. 102 NON-MAJOR PROPRIETARY FUNDS – BUSINESS-TYPE ACTIVITIES Proprietary funds are used to account for City operations that are run like a business. These funds are responsible for providing enough operational revenue to cover all expenses. Landfill This fund accounts for the operation of the City owned landfill and recycling operations. Fees charged for the use of the landfill are used to maintain and improve the landfill operations as well as fund future closure costs. Sanitation This fund accounts for the City’s trash collection services including curb, roll-off, bulk, and front-load services to individuals and businesses. Revenues collected are used to keep the City free of garbage. Housing This fund accounts for operations to provide affordable housing to those who cannot afford it in the private market. This is done through administration of Federal Section 8 Housing Choice and Conventional Public Housing programs. 103 City of Glendale, Arizona Combining Statement of Net Assets Non-Major Proprietary Funds - Business-Type Activities For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Landfill ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts Allowance for uncollectibles Due from other funds Intergovernmental receivable Inventories and prepaid items Total current assets $ 24,876 $ 322 (2) 1,189 26,385 Noncurrent assets: Restricted cash and investments Capital assets: Capital assets Accumulated depreciation Capital assets, net Total noncurrent assets Total assets Noncurrent liabilities: Compensated absences OPEB long-term obligations Other long-term debt Capital lease obligations Estimated closure and post-closure costs Total noncurrent liabilities Total liabilities $ Housing 5,443 $ 1,716 (26) 2 7,135 - LIABILITIES Current liabilities: Vouchers payable Accounts payable Compensated absences Due to other funds Deposits Unearned rent Current portion of long-term debt: General obligation bonds Capital lease payable Interest payable Total current liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Other purposes Unrestricted Total net assets Sanitation 993 Total $ 173 377 4 1,547 - 31,312 2,211 (28) 1,189 377 6 35,067 42 42 22,615 (9,413) 13,202 13,202 39,587 10,992 (6,411) 4,581 4,581 11,716 1,073 268 152 - 446 307 1,189 112 - 43 22 77 38 8 1,519 43 597 1,266 302 8 132 3 1,628 488 10 2,552 188 132 488 13 4,368 61 356 12,281 12,698 14,326 82 726 592 1,400 3,952 194 188 42 424 612 337 1,270 42 592 12,281 14,522 18,890 13,069 3,502 6,232 22,803 12,192 25,261 4,262 7,764 977 7,209 977 16,454 40,234 $ 104 12,977 (6,745) 6,232 6,274 7,821 $ 46,584 (22,569) 24,015 24,057 59,124 $ 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, 2009 (amounts expressed in thousands) Business-Type Activities Enterprise Funds Landfill Operating revenues: Intergovernmental Container service Curb service Landfill user fees Recycling sales Other fees Total operating revenues $ Operating expenses: Landfill Housing Closure/post-closure care adjustment Sanitation Depreciation Total operating expenses Operating income (loss) Sanitation 5,621 1,591 74 7,286 6,172 862 1,026 8,060 (774) Nonoperating revenues (expenses): Impact fees Investment income Interest expense Gain on disposal of assets OPEB expense Total nonoperating revenue (expenses) 18 565 (6) 91 9 677 Income (loss) before contributions and transfers (97) Capital contributions Transfers in Change in net assets Total net assets - beginning Total net assets - ending $ $ 13,090 996 14,086 1,170 1 170 8,701 2,042 10,743 Total $ 11,505 371 11,876 (1,133) (1 133) 3 94 (50) 146 19 212 8,701 4,816 10,437 5,621 1,594 2,116 33,285 6,172 11,505 862 13,090 2,393 34,022 (737) 6 6 1,382 21 659 (56) 237 34 895 (1,127) 158 - - 725 725 - - 604 604 1,382 202 1,487 (97) $ 4,816 10,437 3 15,256 Housing 25,358 25,261 105 $ 6,382 7,764 $ 7,007 7,209 $ 38,747 40,234 City of Glendale, Arizona Combining Statement of Cash Flows Non-Major Proprietary Funds - Business-Type Activities For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Landfill 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 (used) by operating activities $ Sanitation 6,189 (1,365) (1,888) (2,395) 541 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 (used for) capital and related financing activities $ (6,382) (886) (4,417) 3,567 1,870 8,805 $ (10,147) (1,264) (736) 23,311 8,805 (7,747) (12,921) (8,076) 3,372 - 5 604 5 604 - - 609 609 (199) (1,391) 18 (11) - (608) (1,678) 3 (55) - (1,006) 725 (807) (4,075) 21 (66) 725 (1,583) (2,338) (281) (4,202) 565 565 Net increase (decrease) in cash and cash equivalents during fiscal year (477) $ 15,252 - Total - 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 $ Housing 25,353 24,876 106 94 94 - 1,323 $ 4,120 5,443 659 659 (408) $ 1,443 1,035 438 $ 30,916 31,354 Landfill Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operations: Depreciation Changes in assets and liabilities: Accounts receivable Intergovernmental receivable Inventories and prepaid items Vouchers payable Due to other funds Deposits Unearned rent Compensated absences Estimated closure and post-closure costs Net cash provided by (used) 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 $ 24,876 $ 24,876 $ (774) Sanitation $ 1,170 Housing $ (1,133) Total $ (737) 1,026 996 371 2,393 89 (1,189) 486 2 39 (10) (2) 188 1,189 8 28 (172) 104 (1) 30 45 2 1 17 (93) (1,085) (3) 704 1,234 12 1 84 862 541 107 $ $ $ 3,567 5,443 5,443 $ $ $ (736) 993 42 1,035 $ $ $ 862 3,372 31,312 42 31,354 City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 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 Less: Transfers out Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: General administration Water Sewer Contingencies Capital outlay Debt service: Principal Interest Total charges to appropriations Budgetary fund balance, June 30, 2009 $ Actual Amounts (budgetary basis) Final 105,328 $ 105,328 $ 93,180 Variance with Final Budget Positive (Negative) $ - - 42,095 24,430 4,500 1,624 1,530 396 71,500 15 146,090 (1,367) 250,051 43,120 24,050 4,500 1,094 1,530 296 71,500 146,090 (1,367) 250,051 36,724 26,798 1,632 1,763 1,874 520 22 69,334 (53) 162,461 (6,396) 2,748 (2,868) 669 344 224 (71,500) 22 (76,756) 1,314 (87,590) 11,900 23,004 15,629 10,000 96,065 11,290 30,698 20,249 8,652 82,016 9,288 17,446 12,686 36,103 2,002 13,252 7,563 8,652 45,913 10,712 14,206 181,516 10,712 14,206 177,823 10,711 13,968 100,202 1 238 77,621 68,535 108 $ 72,228 1 (12,148) $ 62,259 1 $ (9,969) 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. Market adjustment on restricted investments not available for appropriation. Revenues offset directly by bad debt expense on budgetary basis. Proceeds from equipment disposals. Gain on disposal of assets. Internal staff and administrative charges reported as revenue only on budgetary basis. Add: Transfers out. Total revenues as reported on the statement of revenues, expenses, and changes in fund net assets excluding capital contributions. 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. OPEB expense. Interest expense. Internal staff and administrative charges reported as revenue only on budgetary basis. Change in accrued payroll. Total expenditures as reported in the statement of revenues, expenses, and changes in fund net assets, excluding loss from joint venture. 109 $ 162,461 (93,180) (473) 637 (22) 45 (176) 53 $ 69,345 $ 100,202 637 165 (36,103) 45 129 19,152 4 (10,711) (59) (900) (176) 120 $ 72,505 City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 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, 2009 $ 23,330 Final $ 23,330 Actual Amounts (budgetary basis) $ 24,972 Variance with Final Budget Positive (Negative) $ 1,642 5,955 2,000 102 1 900 377 9,335 (13) 32,652 6,250 1,417 135 658 48 8,508 (13) 31,825 5,621 1,591 74 93 566 335 8,280 33,252 (629) 174 (61) 93 (92) 287 (228) 13 1,427 2,000 7,346 8,552 1,850 7,496 8,427 6,438 1,484 1,850 1,058 6,943 132 7 18,037 132 143 18,048 132 7 8,061 136 9,987 14,615 $ 13,777 $ 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. Proceeds from disposal of capital assets. Gain on disposal of assets. Total revenues as reported in 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. Differences - budget to GAAP: Capital outlay expenditures. Change in compensated absences liability. Change in estimated landfill post-closure liability. Depreciation expense. Principal payments on long-term obligations. OPEB expense. 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. 110 25,191 $ 11,414 $ 33,252 (24,972) (318) (93) 91 $ 7,960 $ 8,061 (1,484) 38 862 1,026 (132) (9) 12 (317) $ 8,057 City of Glendale, Arizona Budgetary Comparison Schedule Sanitation Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Charges for services: Container service Curb service Impact fees Recycle sales Investments Capital lease proceeds Proceeds from equipment disposal 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, 2009 $ 5,641 Final $ 5,641 Actual Amounts (budgetary basis) $ 5,864 Variance with Final Budget Positive (Negative) $ 223 4,927 9,653 64 5 200 813 5 15,667 21,308 4,839 10,350 7 1 109 1,189 16,495 22,136 4,816 10,347 3 2 94 147 15,409 21,273 (23) (3) (4) 1 (15) (1,189) 147 (1,086) (863) 14,659 2,759 14,659 2,730 12,998 1,825 1,661 905 608 55 18,081 608 55 18,052 608 55 15,486 2,566 3,227 $ 4,084 $ 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. Total revenues as reported in 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. Differences - budget to GAAP: Bad debt expense. Capital outlay. Change in compensated absences liability. Depreciation expense. Interest expense. OPEB 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. 111 5,787 $ 1,703 $ 21,273 (5,864) (47) 138 (147) 146 $ 15,499 $ 15,486 138 (1,825) 27 996 (5) (19) (608) (26) (47) $ 14,117 City of Glendale, Arizona Budgetary Comparison Schedule Housing Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 432 Final $ 432 Actual Amounts (budgetary basis) $ 2,234 Variance with Final Budget Positive (Negative) $ 1,802 RESOURCES (INFLOWS): Intergovernmental Miscellaneous Total revenues Add: Transfers in Amounts available for appropriation 8,268 8,268 607 9,307 6,523 6,523 607 7,562 9,426 2,042 11,468 604 14,306 2,903 2,042 4,945 (3) 6,744 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Housing Capital outlay Total charges to appropriations 8,521 240 8,761 8,519 240 8,759 11,504 534 12,038 (2,985) (294) (3,279) Budgetary fund balance, June 30, 2009 $ 546 $ (1,197) $ 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. Less: Transfers in. Total revenues as reported in 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. Differences - budget to GAAP: Depreciation expense. Capital outlay. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net assets. 112 2,268 $ 3,465 $ 14,306 (2,234) (604) $ 11,468 $ 12,038 371 (533) (6) $ 11,870 City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ INTERNAL SERVICE FUNDS ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. City of Glendale, Arizona Combining Statement of Net Assets Internal Service Funds For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Risk Management ASSETS Current assets: Equity in pooled cash and investments Accounts receivable, net Inventories and prepaid items Total current assets $ Noncurrent assets: Restricted cash and investments 8,038 62 8,100 Workers' Compensation $ 2,807 2,807 Employee Benefits $ 3,956 19 3,975 Total $ 14,801 19 62 14,882 - 180 1,425 1,605 8,100 2,987 5,400 16,487 LIABILITIES Current liabilities: Vouchers payable Estimated claims payable Total current liabilities 7 2,611 2,618 76 715 791 1,681 954 2,635 1,764 4,280 6,044 Noncurrent liabilities: Estimated claims payable Total noncurrent liabilities Total liabilities 698 698 3,316 1,014 1,014 1,805 2,635 1,712 1,712 7,756 NET ASSETS Unrestricted 4,784 1,182 2,765 8,731 Total assets Total net assets $ 4,784 $ 113 1,182 $ 2,765 $ 8,731 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, 2009 (amounts expressed in thousands) Risk Management Operating revenues: Self-insurance premiums Other Total operating revenues $ Operating expenses: Insurance claims and premiums $ 730 Operating income (loss) Change in net assets $ $ 19,443 187 19,630 Total $ 20,656 (157) 152 Income (loss) before transfers 993 18 1,011 Employee Benefits 1,168 2,116 Nonoperating revenues: Investment income Net assets - beginning Net assets - ending 2,828 18 2,846 Workers' Compensation 23,264 223 23,487 22,554 (1,026) 933 65 153 2,268 (92) (873) 1,303 2,268 (92) (873) 1,303 2,516 4,784 114 $ 1,274 1,182 $ 3,638 2,765 370 $ 7,428 8,731 City of Glendale, Arizona Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2009 (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 $ $ (1,527) Net cash provided by (used for) operating activities 1,319 Cash flows from investing activities: Interest received 152 Net increase (decrease) in cash during fiscal year Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operations: Change in accounts receivable 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 2,846 6,567 8,038 $ $ 2,116 $ - 1,319 $ $ 8,038 8,038 $ $ 23,466 (25,373) (340) (2,886) (1,907) 153 3,262 2,987 (157) (340) 2,807 180 2,987 370 (2,733) (1,537) $ 8,114 5,381 $ 17,943 16,406 $ (1,026) $ 933 74 (257) $ $ (22,496) - (15) (11) (771) 19,610 Total (1,350) (275) $ 115 $ 65 1,471 $ 1,010 Employee Benefits (19) (19) 58 (1,899) (15) 121 (2,927) $ (2,886) $ (1,907) $ 3,956 1,425 5,381 $ 14,801 1,605 16,406 $ $ City of Glendale, Arizona Budgetary Comparison Schedule Risk Management Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ RESOURCES (INFLOWS): Self-insurance premiums Investments Other Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Insurance and claims Total charges to appropriations Budgetary fund balance, June 30, 2009 $ 6,867 Final $ 6,867 Actual Amounts (budgetary basis) $ 6,550 2,828 1,000 3,828 10,695 2,828 173 3,001 9,868 2,828 153 17 2,998 9,548 5,760 5,760 5,742 5,742 1,516 1,516 4,935 $ 4,126 $ 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. 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. Differences - budget to GAAP: Change in estimated claims payable and prepaids. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net assets. 116 8,032 Variance with Final Budget Positive (Negative) $ (317) (20) 17 (3) (320) 4,226 4,226 $ 3,906 $ 9,548 (6,550) $ 2,998 $ 1,516 (786) $ 730 City of Glendale, Arizona Budgetary Comparison Schedule Workers' Compensation Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 2,900 Final $ 2,900 Actual Amounts (budgetary basis) $ 3,229 RESOURCES (INFLOWS): Self-insurance premiums Investments Other Total revenues Amounts available for appropriation 993 125 1,118 4,018 993 76 1,069 3,969 993 65 18 1,076 4,305 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Insurance and claims Total charges to appropriations 1,407 1,407 1,424 1,424 1,424 1,424 Budgetary fund balance, June 30, 2009 $ 2,611 $ 2,545 $ 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. Total revenues as reported in 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. Differences - budget to GAAP: Change in estimated claims payable. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net assets. 117 2,881 Variance with Final Budget Positive (Negative) $ 329 (11) 18 7 336 $ 336 $ 4,305 (3,229) $ 1,076 $ 1,424 (256) $ 1,168 City of Glendale, Arizona Budgetary Comparison Schedule Employee Benefits Fund For the Fiscal Year Ended June 30, 2009 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1, 2008 $ 4,700 Actual Amounts (budgetary basis) Final $ 4,700 $ 6,490 Variance with Final Budget Positive (Negative) $ 1,790 RESOURCES (INFLOWS): Self-insurance premiums Investments Other Total revenues Amounts available for appropriation 23,369 113 23,482 28,182 19,592 191 4 19,787 24,487 19,443 153 187 19,783 26,273 (149) (38) 183 (187) 1,786 CHARGES TO APPROPRIATIONS (OUTFLOWS): Current: Insurance and claims Total charges to appropriations 24,482 24,482 24,482 24,482 22,555 22,555 1,927 1,927 Budgetary fund balance, June 30, 2009 $ 3,700 $ 5 $ 3,718 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. Total revenues as reported in 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. Differences - budget to GAAP: Change in estimated claims payable liability. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net assets. 118 $ 3,713 $ 26,273 (6,490) $ 19,783 $ 22,555 (1,899) $ 20,656 City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ OTHER SUPPLEMENTARY INFORMATION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 This page left blank intentionally. 171 172 173 174 176 180 190 161 162 163 164 165 166 167 168 160 Non-current assets: Capital assets: Land Buildings Furniture, equipment & machinery - dwellings Furniture, equipment & machinery - administration Leasehold improvements Accumulated depreciation Construction in progress Infrastructure Total capital assets, net of accumulated depreciation Notes, loans, & mortgages receivable - non-current Notes, loans, & mortgages receivable - non-current - past due Grants receivable - non-current Other assets Investment in joint venture Total non-current assets Total assets $ 6,121,867 6,769,407 135,533 8,409,211 461,973 162,318 2,222,771 (6,601,800) 1,331,861 6,121,867 4,852 (243) 647,540 Current investments: Investments - unrestricted Investments - restricted Investments - restricted for payment of current liability Prepaid expenses and other assets Inventories Allowance for obsolete inventories Interprogram - due from Assets held for sale Total current assets 131 132 135 142 143 143.1 144 145 150 180,676 38,390 219,066 250,774 171,684 1,941 (534) 423,865 $ AMPS Accounts receivables: Accounts receivable - PHA projects Accounts receivable - HUD other projects Accounts receivable - other government Accounts receivable - miscellaneous Accounts receivable - tenants Allowance for doubtful accounts - tenants Total receivables, net of allowances for doubtful accounts ASSETS: Current assets: Cash: Cash - unrestricted Cash - restricted - modernization and development Cash - other restricted Cash - tenant security deposits Cash - restricted for payment of current liability Total cash Balance Sheet Account Description 121 122 124 125 126 126.1 120 111 112 113 114 115 100 Line Item No. 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. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) 119 $ $ 109,697 1,020,847 149,998 102,908 (143,209) 109,697 41,958 36,567 911,150 99,507 2,269 101,776 526,821 204,028 730,849 HCV $ $ ROSS - - - - - $ $ 48,881 - 48,881 24,245 24,245 24,636 24,636 DVP $ $ - 18,175 - - - - - $ $ - 18,175 - 18,175 18,175 DHAP Formula Capital Fund Stimulus Grant $ $ - - (36,567) - - (36,567) (36,567) Eliminations $ $ (continued) 6,231,564 7,820,743 135,533 8,559,209 461,973 265,226 2,222,771 (6,745,009) 1,331,861 6,231,564 41,958 4,852 (243) 1,589,179 99,507 277,288 171,684 1,941 (534) 549,886 750,308 204,028 38,390 992,726 Total 1 of 8 120 508.1 511.1 512.1 513 600 352 353 354 355 356 357 350 300 351-010 351-020 351 344 345 346 347 348 310 EQUITY/NET ASSETS: Invested in capital assets, net of related debt Restricted net assets Unrestricted net assets Total equity/net assets Total liabilities and equity/net assets Long-term debt, net of current- operating borrowings Noncurrent liabilities- other Accrued compensated absences - noncurrent Loan Liability - noncurrent FASB 5 liabilities Accrued pension and OPEB liability Total noncurrent liabilities Total liabilities Noncurrent liabilities: Long-term debt, net of current - CFFP Long-term debt, net of current - capital projects/mortgage revenue Total L/T debt, net of current- capital pjts/mortgage rev bonds Current portion of L/T debt - operating borrowings Other current liabilities Accrued liabilities - other Interprogram - due to Loan liability - current Total current liabilities Current portion of L/T debt - CFFP Current portion of L/T debt - capital projects/mortgage revenue Total Current portion of L/T debt - capital pjts/mortgage rev bonds 343-010 343-020 343 6,121,867 318,362 6,440,229 6,769,407 127,205 116,008 243,213 329,178 - 85,965 - 8,000 8,000 332 333 341 Deferred revenue - operating subsidy Deferred revenue - capital fund Deferred revenue - other Total deferred revenues - 25,441 14,134 - 342-010 342-020 342-030 342 $ $ AMPS 38,390 Accounts payable - HUD PHA programs - operating subsidy Accounts payable - HUD PHA programs - capital fund Accounts payable - HUD PHA programs - other Total accounts payable - HUD PHA Programs LIABILITIES AND EQUITY/NET ASSETS: LIABILITIES: Current liabilities: Bank Overdraft Accounts payable <= 90 days Accounts payable > 90 days past due Accrued wage/payroll taxes payable Accrued compensated absences - current portion Accrued contingency liability Accrued interest payable Balance Sheet Account Description Accounts payable - PHA projects Accounts payable - other government Tenant security deposits 331-010 331-020 331-030 331 311 312 313 321 322 324 325 Line Item No. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ 109,697 204,028 504,643 818,368 1,020,847 41,958 67,098 77,338 186,394 202,479 - 16,085 - - - - 8,630 7,455 - HCV $ $ ROSS - - - - - - - - - $ $ - - - - 150 - 13,488 13,488 48,881 35,393 - 35,243 35,393 DVP $ $ 225 - 8,406 8,406 18,175 9,769 - 1,324 9,769 - - - 8,220 8,220 DHAP $ $ - - - - - - - - - Formula Capital Fund Stimulus Grant $ $ - - - - - (36,567) (36,567) - (36,567) (36,567) Eliminations $ $ (continued) 6,231,564 204,028 844,899 7,280,491 7,820,743 41,958 194,303 193,346 429,607 540,252 - 110,645 - 8,000 8,000 38,390 8,220 8,220 34,446 21,589 - Total (continued) 2 of 8 121 72000-010 72000-020 72000 72000 70000 Investment income - restricted - housing assistance payment Investment income - restricted - administrative fee Investment income - restricted - other Total investment income - restricted Total revenue Other revenue Gain or loss on the sale of capital assets 1,635,782 80,341 - - Fraud recovery - housing assistance payment Fraud recovery - administrative fee Fraud recovery - other Total fraud recovery 71400-010 71400-020 71400 71400 71500 71600 - Mortgage interest income Proceeds from disposition of assets held for sale Cost of sale of assets 71200 71300 71310 $ 238,745 Other government grants 70800 71100-010 71100-020 71100 71100 1,480 1,480 - Management fee Asset management fee Bookkeeping fee Front line service fee Other fees Total fee revenue Investment income - unrestricted - housing assistance payment Investment income - unrestricted - administrative fee Investment income - unrestricted - other Total investment income - unrestricted 405,525 Capital grants 70600-010 70600-020 70600-030 70600-040 70600-050 70600-060 70600-070 70600 70600 70610 351,729 8,014 359,743 70710 70720 70730 70740 70750 70700 $ AMPS 549,948 549,948 REVENUE: Net tenant rental revenue Tenant revenue - other Total tenant revenue Income Statement Account Description Housing assistance payments Ongoing administrative fees earned Hard to house fee revenue Actual independent public accountant audit costs Total preliminary fees earned Interest earned on advances Admin fee calculation description HUD PHA operating grants - other Total HUD PHA operating grants 70300 70400 70500 Line Item No. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ - 489 489 9,498,244 1,596,928 - 1,304 1,304 2,608 - 763 763 - - - 7,207,985 689,471 7,897,456 HCV $ $ - 4,962 - - - - - - - 4,962 4,962 ROSS $ $ - 4,406 - - - - - - - 4,406 4,406 DVP $ $ - - - - 5,099 - - - - 5,099 DHAP $ $ 319,325 - - - - - - 319,325 - - Formula Capital Fund Stimulus Grant $ $ Eliminations - - - - - - - - - - $ $ (continued) 489 489 11,467,818 1,677,269 - 1,304 1,304 2,608 - 763 1,480 2,243 243,844 - 724,850 7,207,985 689,471 559,316 8,456,772 351,729 8,014 359,743 Total (continued) 3 of 8 122 94500 94000 94300-010 94300-020 94300-030 94300-040 94300-050 94300-060 94300-070 94300-080 94300-090 94300-100 94300-110 94300-120 94300 $ 53,205 633,209 26,132 10,247 5,205 4,623 10,847 15,666 127,530 200,250 Ordinary maint & ops contracts - garbage & trash removal Ordinary maint & ops contracts - heating & cooling Ordinary maint & ops contracts - snow removal Ordinary maint & ops contracts - elevator maintenance Ordinary maint & ops contracts - landscape & grounds Ordinary maint & ops contracts - unit turnaround Ordinary maint & ops contracts - electrical Ordinary maint & ops contracts - plumbing Ordinary maint & ops contracts - extermination Ordinary maint & ops contracts - janitorial Ordinary maint & ops contracts - routine maintenance Ordinary maint & ops contracts - miscellaneous Total ordinary maintenance and operations - contract costs Employee benefit contributions - ordinary maintenance Total maintenance 261,790 117,964 Ordinary maintenance and operations - labor Ordinary maintenance and operations - materials & other 65,100 22,044 2,686 31,315 121,145 Water Electricity Gas Fuel Labor Sewer Employee benefit contributions- utilities HAP portability - in Other utilities expense Total utilities 93100 93200 93300 93400 93500 93600 93700 93750 93800 93000 94100 94200 16,200 16,200 - Tenant services - salaries Relocation costs Employee benefit contributions - tenant services Tenant services - other Total Tenant services 481,466 214 92,333 41,126 464 44,209 659,812 Asset management fee $ AMPS 92100 92200 92300 92400 92500 EXPENSES: Administrative salaries Auditing fees Management fee Bookkeeping fee Advertising and marketing Employee benefit contributions - administrative Office expenses Legal expense Travel Allocated overhead Other Total operating - administrative Income Statement Account Description 92000 91100 91200 91300 91310 91400 91500 91600 91700 91800 91810 91900 91000 Line Item No. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ 20,943 - 20,943 - - - 511,443 548 108,874 37,388 600 61,120 719,973 HCV $ $ - 521 521 - - - - 4,441 4,441 ROSS $ $ DVP - - - - - - 450 450 $ $ DHAP - - - - - - 750 750 $ $ - - - - - - - Formula Capital Fund Stimulus Grant $ $ Eliminations - - - - - - - $ $ (continued) 53,205 654,152 26,132 10,247 5,205 4,623 10,847 15,666 127,530 200,250 261,790 138,907 65,100 22,044 2,686 31,315 121,145 20,641 20,641 - 992,909 762 201,207 78,514 600 464 107,050 1,381,506 Total (continued) 4 of 8 123 HAP Portability-in Depreciation expense Fraud losses Dwelling units rent expense Total expenses 365,735 1,853,896 - HAP - mainstream 1 & 5 year HAP - home-ownership HAP - litigation HAP - hope IV HAP - moving to work HAP - tenant protection HAP - all other Total Housing assistance payments 97300-010 97300-020 97300-025 97300-030 97300-035 97300-040 97300-050 97300 97350 97400 97500 97800 90000 - Extraordinary maintenance Casualty losses - non-capitalized 147,621 1,488,161 97100 97200 $ Total operating expenses 96900 Excess revenue over operating expenses Interest of mortgage (or bonds) payable Interest on notes payable (short and long term) Amortization of bond issue costs Total Interest expense and amortization cost 96710 96720 96730 96700 97000 14,096 534 14,630 Other general expenses Compensated absences Payments in lieu of taxes Bad debt - tenant rents Bad debt- mortgages Bad debt - other Severance expense Total other general expenses 96200 96210 96300 96400 96500 96600 96800 96000 - 39,961 2,148 42,109 Property insurance Liability insurance Workman's compensation All other insurance Total insurance premiums 1,056 1,056 AMPS 96110 96120 96130 96140 96100 $ Protective services - labor Protective services - other contract costs Protective services - other Employee benefit contributions - protective services Total protective services Income Statement Account Description 95100 95200 95300 95500 95000 Line Item No. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ - 1,344,702 5,626 10,013,547 7,875,591 7,875,591 - 8,710,616 787,628 - 25,169 3,222 28,391 17,377 944 18,321 HCV $ $ - - - - 4,962 - - - 4,962 ROSS $ $ 450 - - - - 2,519 2,069 2,069 - 3,956 DVP $ $ 750 - - - - 750 - - 4,349 DHAP $ $ - - - 319,325 - - - - - Formula Capital Fund Stimulus Grant $ $ Eliminations - - - - - - - - - $ $ (continued) 1,344,702 371,361 11,875,674 7,877,660 7,877,660 - 9,185,867 2,281,951 - 25,169 17,318 534 43,021 57,338 3,092 60,430 1,056 1,056 Total (continued) 5 of 8 124 10000 10030 10040 10070 10080 10091 10092 10093 10094 10100 10030-010 10030-020 10030-030 10030-040 10030-050 10010 10020 Line Item No. Excess (deficiency) of total revenues over (under) total expenses Operating transfers from/to primary government - not for profit Operating transfers from/to primary government - partnership Operating transfers from/to primary government - joint venture Operating transfers from/to primary government - tax credit Operating transfers from/to primary government - other Operating transfers from/to primary government - other - comment Total operating transfers from/to primary government Operating transfers from/to component unit Extraordinary items, net gain/loss Special items, net gain/loss Inter AMP excess cash transfer in Inter AMP excess cash transfer out Transfers from program to AMP Transfers from AMP to program Total other financing sources (uses) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out Income Statement Account Description City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ - 385,886 604,000 604,000 604,000 AMPS $ $ - - (515,303) HCV $ $ ROSS - - - $ $ - - 1,887 DVP $ $ - - 4,349 DHAP $ $ 319,325 - - Formula Capital Fund Stimulus Grant $ $ Eliminations - - - $ $ - (continued) 196,144 604,000 604,000 604,000 Total (continued) 6 of 8 125 - Housing assistance payments equity: Housing assistance payments equity - beginning balance Housing assistance payments revenues Fraud recovery revenue Other revenue Comment for other revenue Investment income Total housing assistance payments revenues Housing assistance payments Other expenses Comment for other expenses Total housing assistance payments expenses Net housing assistance payments Housing assistance payments equity - ending balance Housing assistance payments Unit months available Unit months leased 11180-001 11180-010 11180-015 11180-020 11180-021 11180-025 11180-030 11180-080 11180-090 11180-091 11180-100 11180-002 11180-003 11180 11190 11210 1,788 1,781 - - Total operating expenses Depreciation Housing assistance portability-in Other expenses Comment for other expense Total expenses 11170-080 11170-090 11170-095 11170-100 11170-101 11170-110 Net administrative fee Administrative fee equity - ending balance Administrative fee equity - Total administrative fee revenues 11170-060 11170-002 11170-003 11170 - Comment for other revenue 11170-051 - 319,325 319,325 - $ 5,698,108 Administrative fee revenue Hard to house fee revenue Audit costs Investment income Fraud recovery revenue Other revenue Administrative fee equity: Administrative fee equity - beginning balance 11170-001 $ AMPS 11170-010 11170-020 11170-030 11170-040 11170-045 11170-050 Prior period adjustments and correction of errors - Editable Prior period adjustments and correction of errors - Editable Prior period adjustments and correction of errors - Editable Prior period adjustments and correction of errors - Editable Prior period adjustments and correction of errors - Editable Prior period adjustments and correction of errors - Editable Equity transfers Equity transfers Equity transfers Equity transfers Equity transfers Total prior period adjustments, equity transfers & correction of errors Beginning equity 11040-010 11040-020 11040-030 11040-040 11040-050 11040-060 11040-070 11040-080 11040-090 11040-100 11040-110 11040 Required annual debt principal payments 11030 MEMO ACCOUNT INFORMATION Income Statement Account Description 11020 Line Item No. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) - $ 12,648 12,567 204,028 869,841 7,207,985 1,304 489 7,209,778 7,875,591 7,875,591 (665,813) 204,028 150,510 574,113 574,113 787,628 5,626 1,344,702 2,137,956 2,288,466 - - - - - 3 3 - - - - - - - - - - 11,601 - $ $ DVP - - - - - - - $1,344,702 HAP Port-in; $252,226 Admin Port-in $ $ - 423,603 - 1,293,444 ROSS 689,471 763 1,304 1,596,928 $ HCV $ $ - - - - - - - - - - - - 4,057 DHAP $ $ - - - - - - - - - - (319,325) (319,325) - - Formula Capital Fund Stimulus Grant $ $ Eliminations - - - - - - - - - - - - - $ $ - 14,439 14,351 204,028 869,841 7,207,985 1,304 489 7,209,778 7,875,591 7,875,591 (665,813) 204,028 150,510 574,113 574,113 787,628 5,626 1,344,702 2,137,956 2,288,466 - 689,471 763 1,304 1,596,928 423,603 - 7,007,210 Total (continued) 7 of 8 126 11610 11620 11630 11640 11650 11660 13510 13901 Line Item No. Admin equity HAP equity Total equity Check sum: should be zero -0- $ 5,698,108 319,325 385,886 6,403,319 6,440,229 (36,910) Beginning equity Equity transfers and/or prior period adjustments Results of operations Ending equity Ending equity per balance sheet Check sum: should be zero -0- 724,850 - AMPS 6,769,407 6,769,407 - $ Total assets Total liabilities and equity Check sum: should be zero -0- Land purchases Building purchases Furniture & equipment - dwelling purchases Furniture & equipment - administrative purchases Leasehold improvements purchases Infrastructure purchases CFFP debt service payments Replacement housing factor funds Income Statement Account Description City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2009 (rounded to nearest dollar) $ $ $ - 574,113 204,028 778,141 - 1,293,444 (515,303) 778,141 818,368 (40,227) 1,020,847 1,020,847 - HCV $ $ ROSS - - - $ $ - 11,601 1,887 13,488 13,488 - 48,881 48,881 - DVP $ $ - 4,057 4,349 8,406 8,406 - 18,175 18,175 - DHAP $ $ (319,325) 319,325 - - - Formula Capital Fund Stimulus Grant $ $ - - (36,567) (36,567) - Eliminations $ $ 7,007,210 196,144 7,203,354 7,280,491 (77,137) 7,820,743 7,820,743 - 724,850 - Total (continued) 8 of 8 City of Glendale, Arizona COMPREHENSIVE ANNUAL FINANCIAL REPORT _________________________________________________________ STATISTICAL SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2009 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. 128-135 Revenue Capacity These schedules contain information to help the reader assess the city’s local revenue source, the property tax and sales tax. 136-140 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. 142-149 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. 150-151 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. 152-156 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. 127 City of Glendale, Arizona Net Assets by Component Last Ten Fiscal Years(1) (amounts expressed in thousands) 2009 Government activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets $ $ 499,322 133,695 51,850 2007 $ 446,828 180,303 44,573 2006 $ 398,517 155,163 75,417 667,406 684,867 671,704 629,097 286,452 13,249 114,814 297,329 12,836 107,384 249,569 11,881 155,325 233,387 12,437 158,753 414,515 417,549 416,775 404,577 757,936 157,671 166,314 796,651 146,531 159,234 696,397 192,184 199,898 631,904 167,600 234,170 $ 1,081,921 $ 1,102,416 $ 1,088,479 $ 1,033,674 Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets 471,484 144,422 51,500 2008 (1) 2002 was the first year data was available. 128 Schedule 1 2005 $ $ 372,778 179,434 40,641 2004 $ 353,135 169,434 49,916 (1) 2003 $ 259,802 127,393 132,801 2002 $ 31,260 91,203 9,232 592,853 572,485 519,996 131,695 274,620 11,249 108,604 228,252 10,479 141,094 275,204 10,235 82,564 269,007 20,092 64,312 394,473 379,825 368,003 353,411 647,398 190,683 149,245 581,387 179,913 191,010 535,006 137,628 215,365 300,267 111,295 73,544 987,326 $ 952,310 $ 129 887,999 $ 485,106 130 $ 39,998 Total governmental activities program revenues Capital grants and contributions Operating grants and contributions Street maintenance 62,625 2,600 24,146 36 88,960 14,491 33,191 - - 22,859 3,045 15,661 Community environment Community services 543 5,744 12,132 588 $ Public works 11,879 389,007 4,670 $ 386,711 Public safety General government Charges for services: Governmental activities: Program revenues Total primary government expenses $ 99,251 26,247 36,566 48 - 22,285 531 1,964 11,610 338,200 94,351 8,951 107,719 9,862 108,348 11,840 Total business-type activities expenses Housing 13,847 15,209 8,264 63,289 243,849 23,551 - 24,906 4,698 45,481 14,816 92,405 37,992 14,039 $ $ Sanitation 8,067 74,581 281,288 28,475 - 26,175 5,164 52,185 16,006 113,285 2007 8,045 $ $ 2008 Landfill Water and sewer 74,424 278,363 Total governmental activities expenses Business-type activities: 38,982 - 23,978 Interest on long-term debt Other Street maintenance 3,539 48,143 Community services Community environment 15,040 Public works 39,545 109,136 $ 2009 Public safety General government Governmental activities: Expenses Last Ten Fiscal Years (amounts expressed in thousands) (1) City of Glendale, Arizona Changes in Net Assets $ $ $ 71,148 6,406 31,973 - 31 20,121 516 1,375 10,726 295,904 86,280 9,466 13,257 7,950 55,607 209,624 16,883 3,020 22,720 4,125 40,275 13,995 75,277 33,329 2006 $ $ $ 55,594 1,407 26,535 - - 16,871 506 1,200 9,075 268,584 79,186 9,278 12,287 7,431 50,190 189,398 16,986 238 21,355 3,236 37,394 14,309 64,277 31,603 2005 $ $ $ 55,160 3,429 24,503 - 3 16,942 148 1,043 9,092 241,771 73,944 8,858 12,294 7,164 45,628 167,827 15,838 142 20,425 3,446 33,914 13,883 56,176 24,003 2004 $ $ $ 2,589 34,931 22,640 25 - 4,409 479 325 4,464 200,576 58,791 7,513 10,180 1,189 39,909 141,785 5,864 19 12,534 3,414 30,919 12,766 53,779 22,490 52,714 $ $ $ 2002 (1) 4,294 22,522 7 - 13,439 526 1,897 10,029 219,179 71,612 8,033 12,353 7,784 43,442 147,567 7,223 148 20,308 3,433 32,210 11,411 52,625 20,209 2003 Schedule 2 131 $ (1) 2002 was the first year data was available. Total primary government Business-type activities Governmental activities Changes in net assets Total primary government Total business-type activities Transfers Capital contributions Miscellaneous Loss on joint venture Gain (loss) on disposal of capital assets Investment earnings, unrestricted Business-type activities: Total governmental activities Transfers Capital contributions Miscellaneous Gain (loss) on disposal of capital assets Investment earnings, unrestricted Auto in-lieu taxes (state shared income tax) Unrestricted urban revenue sharing $ $ $ $ 28,826 (20,495) (3,034) (17,461) 201,269 $ $ 509 13,937 774 13,163 210,278 4,787 551 2,992 - 108 - 126 4,044 - 90 - 282 2,069 205,491 (509) 198,277 (551) 302 879 4,742 9,730 34,109 22,237 105,175 - $ $ (196,341) (4,013) (192,328) 192,666 - 2,872 (52) 1,668 8,808 36,267 19,321 Unrestricted state shared sales tax 32,890 97,054 $ Sales taxes Property taxes Taxes: Governmental activities: General revenues and other changes in net assets (221,764) (6,026) Business-type activities Total primary government net expense (215,738) Governmental activities Net (expense)/revenue 164,947 Total primary government program revenues 103,706 4,346 102,322 Capital grants and contributions Total business-type activities program revenues 1,207 816 8,348 8,701 2,042 Operating grants and contributions Housing 14,684 15,258 Sanitation 9,196 66,316 7,304 67,810 2008 Landfill Water and sewer Charges for services: Business-type activities: 2009 $ $ $ $ $ 54,805 12,198 42,607 193,193 5,988 364 - 140 - 103 5,381 187,205 (364) - 301 202 5,557 10,044 27,518 23,037 97,825 23,085 (138,388) 6,210 (144,598) 199,812 100,561 5,125 8,254 662 14,653 9,742 62,125 2007 $ $ $ $ $ 46,348 10,104 36,244 178,430 3,710 (700) - 100 $ $ 35,016 14,648 20,368 162,315 8,143 164 5,712 202 - - 2,065 154,172 (164) 4,794 275 225 2,654 9,414 20,115 20,271 77,166 19,422 (127,299) 844 $ $ $ 6,505 (133,804) 141,285 85,691 242 8,027 542 13,624 8,961 54,295 2005 3,466 174,720 700 - 272 348 4,395 10,444 22,909 23,298 90,968 21,386 (132,082) 6,394 (138,476) 163,822 92,674 5,403 8,020 569 14,167 8,362 56,153 2006 $ $ $ $ $ 64,311 11,822 52,489 167,733 2,577 333 2,414 - (1,285) - 1,115 165,156 (333) 24,614 349 9 315 8,978 19,731 18,409 74,763 18,321 (103,422) 9,245 (112,667) 138,349 83,189 168 7,643 512 12,817 9,593 52,456 2004 $ $ $ $ 75,447 14,592 60,855 161,157 5,449 67 7,241 - (1,011) (725) (123) 155,708 (67) 27,042 299 445 (1,602) 8,619 23,288 17,113 63,832 16,739 (85,710) 9,143 (94,853) 133,469 80,755 520 7,091 494 11,918 8,644 52,088 2003 $ $ $ $ $ 50,240 24,945 25,295 140,712 8,563 228 4,591 - (1,054) (168) 1,215 132,149 (228) 6,205 289 (345) 1,397 7,219 22,822 16,862 52,580 16,459 (90,472) 16,382 (106,854) 110,104 75,173 673 6,592 422 11,808 9,610 46,068 2002 (1) 132 All other governmental funds Reserved Unreserved, report in: Special revenue funds Capital projects funds Total all other governmental funds General fund Reserved Unreserved Total general fund $ $ 57,555 27,474 168,995 $ $ $ 83,966 10,450 42,180 52,630 $ $ $ 2009 City of Glendale, Arizona Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 76,493 18,436 153,075 58,146 9,271 57,117 66,388 2008 $ $ $ $ 34,369 68,932 148,330 45,029 10,500 50,880 61,380 2007 $ $ $ $ 30,584 64,106 137,600 42,910 10,287 62,166 72,453 2006 $ $ $ $ 34,867 61,765 135,646 39,014 9,377 56,661 66,038 2005 $ $ $ $ 29,807 71,569 142,564 41,188 9,582 51,080 60,662 2004 $ $ $ $ 23,553 126,252 183,332 33,527 17,315 31,727 49,042 2003 $ $ $ $ 8,596 37,932 74,988 28,460 17,998 7,119 25,117 2002 $ $ $ $ 2,585 28,369 50,427 19,473 13,232 24,716 37,948 2001 $ $ $ $ 2,410 33,717 52,274 16,147 13,147 35,460 48,607 2000 Schedule 3 This page left blank intentionally. 133 134 9,346 259,360 Miscellaneous Total revenues 42,294 Community services over (under) expenditures Excess of revenues (196,139) 455,499 39,571 Interest Total expenditures 29,670 Principal Debt service: Capital outlay 186,175 1,666 Community housing Miscellaneous 11,901 Street maintenance 3,478 11,072 Public works Community environment 103,624 Public safety General government 26,048 3,805 Investment income (loss) Expenditures 4,064 Fines and forfeitures 9,881 Charges for services Local revenues 91,642 Intergovernmental 130,119 10,503 $ 2009 Taxes and special assessments Licenses and permits Revenues $ (120,924) 407,409 32,294 32,151 141,060 1,629 13,045 4,972 44,767 11,743 100,384 25,364 286,485 4,915 9,986 4,507 14,125 - 101,821 17,385 133,746 2008 City of Glendale, Arizona Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) $ (136,022) 411,817 20,630 28,096 179,421 3,059 13,372 4,657 39,150 12,155 86,753 24,524 275,795 4,212 10,905 3,932 10,086 - 107,699 17,839 121,122 2007 $ (89,795) 329,767 17,222 20,328 131,243 2,918 11,609 3,978 35,604 12,252 72,745 21,868 239,972 4,136 7,825 3,564 8,838 - 86,994 16,039 112,576 2006 $ (19,025) 224,050 17,231 18,899 47,283 55 - 10,534 3,082 32,627 12,081 61,366 20,892 205,025 3,335 4,762 3,247 5,681 - 75,691 15,497 96,812 2005 $ (86,733) 282,499 15,998 18,090 120,833 555 - 9,811 3,311 30,006 12,816 53,805 17,274 195,766 2,774 1,511 3,169 4,824 - 73,166 16,667 93,655 2004 $ (112,152) 293,805 8,155 21,680 142,213 80 - 9,994 3,282 28,391 10,118 49,571 20,321 181,653 2,834 (805) 3,246 3,313 - 73,836 16,771 82,458 2003 $ (27,634) 187,978 5,925 20,574 38,636 71 - 11,493 3,223 27,502 11,364 49,126 20,064 160,344 2,729 2,572 2,859 2,516 - 68,479 10,663 70,526 2002 $ (11,195) 180,354 6,605 16,501 37,029 475 6,201 10,320 2,379 22,832 12,688 43,741 21,583 169,159 3,687 8,303 2,381 5,347 6,417 72,216 9,897 60,911 2001 $ (23,400) 184,363 5,422 27,574 42,178 458 5,645 9,541 2,052 21,332 11,884 41,155 17,122 160,963 1,905 4,533 2,413 4,862 11,020 70,269 8,280 57,681 2000 Schedule 4 135 of noncapital expenditures Debt service as a percentage Net change in fund balances sources (uses) Total other financing Transfers out Transfers in escrow agent Payment to redeem/refunded bonds $ 25.71% 2,162 198,301 24.20% 9,753 130,677 (52,135) (22,465) - 8,714 93,815 2,192 (83,521) 51,626 $ 109,986 2008 21,914 - Proceeds from equipment disposal Capital lease proceeds 344 Premium on long-term debt issued 199,750 (3,136) 2009 1,894 Refunding bonds issued Long-term debt issued Proceeds from loans Discount on long-term debt Other financing sources (uses) $ - 20.97% (343) 135,679 (25,309) 24,945 668 850 1,198 133,327 2007 $ - 18.91% 8,369 98,164 (19,314) (9,582) 20,014 - 3,166 1,782 9,065 93,033 2006 $ - - 20.44% (1,542) 17,483 (15,964) 15,800 - - 1,342 230 - 16,075 2005 $ - (82) 21.09% (29,148) 57,585 (33,276) 32,943 (21,262) 428 8,198 1,114 - 69,522 2004 $ - - 19.68% 132,269 244,421 (12,918) 12,851 - 11,266 2,802 14,500 - 215,920 2003 $ 200 17.74% 8,449 36,083 (16,165) 15,936 (4,533) - 82 - - 40,563 2002 $ - - - - - - - - 16.12% (12,505) (1,310) (16,325) 15,015 2001 $ - 23.21% 34,496 57,896 (14,333) 15,814 - 9,139 - - - 41,997 5,279 2000 136 1,406,513 1,821,057 368,181 463,560 593,311 739,936 2005-06 2006-07 2007-08 2008-09 $ 1,865 1,759 1,373 1,450 1,661 2,113 2,383 2,609 2,609 2,748 Secured Personal $ 54,663 50,130 45,756 45,025 43,584 35,832 39,629 43,470 39,388 30,259 Unsecured Personal $ 61,347 60,680 58,111 58,101 56,582 58,517 54,189 51,547 46,580 45,209 Utilities Rails and Wires $ 485,193 285,374 230,940 192,607 193,816 135,011 98,565 83,695 65,228 62,981 Less: Tax Exempt Property $ 2,193,675 1,827,019 1,370,989 1,269,568 1,144,550 1,080,017 989,094 954,119 876,903 787,692 Net Assessed Value (1) Source: Maricopa County Assessor's Office Notes: (1) Assessed values are established each year by the County. The tax rate is $100 per assessed value (reference note I. L). (2) The assessed value as a percentage of actual value does not include tax exempt property. 1,033,129 989,418 893,850 342,689 2004-05 820,414 733,234 686,608 619,842 548,672 298,152 258,224 2002-03 $ Improvements 2003-04 253,580 2001-02 223,785 233,712 $ Real Estate 2000-01 1999-00 Fiscal Year Major Components City of Glendale, Arizona Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (amounts expressed in thousands) 1.59 1.62 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.73 Total Direct Tax Rate $ 21,034,639 16,733,846 12,107,926 11,296,734 10,065,003 9,391,120 8,331,442 8,010,100 7,288,261 6,526,885 Estimated Actual Value(1) 12.736 12.624 13.230 12.943 13.297 12.938 13.055 12.956 12.927 13.033 Assessed Value as a Percentage of Actual Value(2) Schedule 5 137 0.34 0.33 0.31 0.29 0.27 0.24 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 $ 1.35 1.35 1.43 1.41 1.39 1.38 1.37 1.36 1.34 1.34 $ 1.59 1.62 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.73 City of Glendale $ 15.85 17.74 19.84 20.96 14.88 14.79 15.51 15.36 15.81 16.72 Glendale Elementary and High School Districts $ 14.09 15.33 17.26 18.45 13.22 13.59 13.69 13.73 14.55 14.86 Peoria Unified School Districts Overlapping Rates* * 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). Source: Maricopa County 2008 Tax Rates Note: The City rounds the rates to two digits from the four presented by the county. 0.35 0.36 2001-02 2002-03 0.38 2000-01 0.39 1999-00 $ Basic Rate Fiscal Year General Obligation Debt Service City of Glendale, Arizona Direct and Overlapping Governments Property Tax Rates Last Ten Fiscal Years Per $100 Assessed Valuation $ 13.03 13.97 15.34 16.98 11.78 12.06 12.59 13.12 13.12 14.33 Deer Valley Unified School Districts Schedule 6 138 Rank 1 2 3 4 5 6 7 8 9 10 $ $ 131,044,986 Assessed Valuation 21,213,395 18,475,282 14,841,707 14,522,082 14,198,154 12,500,544 11,146,716 9,561,362 7,886,081 6,699,663 5.99 % Percentage of Total City Taxable Assessed Value 0.97 % 0.84 0.68 0.66 0.65 0.57 0.51 0.44 0.36 0.31 Tax Year 2009 4 5 6 7 8 9 10 2 1 3 Rank $ $ 54,215,589 4,200,727 3,474,917 3,337,387 2,814,655 2,362,574 2,333,750 2,314,634 11,206,284 12,134,420 10,036,241 Assessed Valuation Schedule 7 6.87 % 0.53 0.44 0.42 0.36 0.30 0.30 0.29 1.42 1.54 % 1.27 Percentage of Total City Taxable Assessed Value Tax Year 1999 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. Source: Maricopa County Treasurer's Office Total principal taxpayers Taxpayer VHS of Arrowhead, Inc. Arizona Public Service Company New River Associates Entertainment Center Development LLC Wal-Mart Stores, Inc. JQH-Glendale Az Development LLC Qwest Corporation (US West) IED Glendale LLC Opus West Corporation Coyote Center Development LLC Southwest Gas Corporation Price Reit Sanderson Ford Burlington Northern Sante Fe Safeway Inc Meridan Trust Co SP Commercial Flight City of Glendale, Arizona Principal Property Taxpayers Current Year and Ten Years Ago June 30, 2009 (amounts expressed in thousands) 139 $ 1999-00 21,566 23,423 28,728 33,927 2005-06 2006-07 2007-08 2008-09 (1) Total levy includes only secured property. (2) Includes collections and resolutions. Source: Maricopa County Treasurer's Office 19,534 2004-05 16,743 2002-03 2002 03 18,468 16,136 2001-02 2003-04 14,227 2000-01 12,978 Total Tax Levy(1) Fiscal Year City of Glendale, Arizona Property Tax Levies and Collections Last Ten Fiscal Years (amounts expressed in thousands) $ 32,411 27,823 22,721 20,980 19,011 17,899 16,289 15,529 13,833 12,507 Amount 95.53 96.85 97.00 97.28 97.32 96.92 97.29 96.24 97.23 96.37 % Percent of Levy Collected within the Fiscal Year of Levy $ - 579 444 493 427 561 440 588 394 471 in Subsequent Years(2) Collections $ 32,411 28,402 23,165 21,473 19,438 18,460 16,729 16,117 14,227 12,978 Amount 95.53 98.87 98.90 99.57 99.51 99.96 99.92 99.88 100.00 100.00 % Percent of Levy Total Collections to Date Schedule 8 140 97,937 Total (4.7) 11.9 (6.9) % Amusement Other Total 7.5 % 3.5 (7.7) 17.8 4.4 13.4 22.1 (9.0) 7.3 % 105,175 3,575 3,034 10,995 $ $ 7.5 % (14.5) 70.0 14.4 11.6 13.3 11.2 4.1 % 7.8 97,825 3,453 3,288 9,335 5,914 4,724 9,895 10,483 50,733 2007 $ $ 17.9 % (2.1) 85.4 16.1 2.3 111.9 8.1 16.4 % 26.1 90,968 4,034 1,934 8,163 5,300 4,168 8,897 9,729 48,743 2006 $ $ 3.2 % 20.8 (1.4) 5.3 20.7 (24.5) 6.1 1.5 % 0.1 77,166 4,119 1,043 7,031 5,179 1,967 8,228 7,716 41,883 2005 $ $ 17.1 % (1.3) 76.0 8.9 76.0 47.6 8.2 12.6 % 36.7 74,763 3,410 1,058 6,676 4,290 2,606 7,752 7,709 41,262 2004 $ $ 21.4 % 3.6 11.5 12.0 63.6 19.1 24.8 18.7 % 54.1 63,832 3,456 601 6,132 2,437 1,765 7,164 5,638 36,639 2003 $ $ Note: The tax rate for City activities is 2.2% except for telecommunications which is 5.4%, restaurant bars 3.2%, hotel/motel 5.6%, and retail sales food for home consumption 1.8%. Source: City of Glendale Tax and License Division (1.2) 20.6 Restaurant/bar 8.9 20.3 Telecom/cable TV Utilities Rentals Contracting (11.1) % (33.1) 4,002 Other % Growth by year Retail sales 3,659 10,863 Amusement Restaurant/bar 5,359 6,174 6,449 6,722 9,540 54,416 Utilities $ $ Telecom/cable TV 6,378 48,353 12,082 $ $ 2008 11,511 Rentals Retail sales Contracting 2009 City of Glendale, Arizona City Transaction Privilege Taxes (Sales Tax) by Category Last Ten Fiscal Years (amounts expressed in thousands) 18.4 % 20.5 27.1 11.0 18.3 14.3 15.0 (14.3) 26.2 % 52,580 3,335 539 5,477 1,490 1,482 5,740 3,659 30,858 2002 $ $ 1.8 % 12.2 (14.0) 4.4 23.8 2.9 7.1 (8.3) 0.6 % 44,391 2,768 424 4,935 1,259 1,297 4,990 4,269 24,449 2001 $ $ 8.9 % (68.2) 100.0 8.3 11.1 2.9 27.7 43.1 % (5.0) 43,587 2,467 493 4,729 1,017 1,260 4,660 4,656 24,305 2000 Schedule 9 This page left blank intentionally. 141 142 55,055 1999-00 157,065 175,155 224,234 212,524 197,738 2004-05 2005-06 2006-07 2007-08 2008-09 127,104 2002-03 153,688 82,637 2001-02 2003-04 46,917 2000-01 $ General Obligation Bonds Fiscal Year Ratio of Outstanding Debt by Type Last Ten Fiscal Years (amounts expressed in thousands) City of Glendale, Arizona (1) $ - - - 39 75 109 12,036 16,247 17,621 19,278 Special Assessment Bonds $ 27,480 30,895 34,065 35,940 22,455 22,730 20,030 24,310 24,310 28,380 Street and Highway Revenue Bonds $ 493,880 298,050 293,530 223,988 177,950 180,230 170,590 11,215 11,215 12,000 Excise Tax Revenue Bonds Government Activities $ 105,035 109,110 - - - - - - - - Transportation Bonds $ 9,076 10,838 12,492 12,875 13,704 14,704 14,971 4,498 8,865 10,198 Capital Leases $ 7,637 9,045 6,279 15,689 18,876 17,098 20,193 4,340 5,754 6,693 Notes Payable Schedule 10 143 11,595 10,805 9,995 2006-07 2007-08 2008-09 132 331 520 700 870 1,032 1,186 1,333 1,333 1,460 Landfill G.O. Bonds 282,345 288,950 229,130 190,020 115,140 121,470 49,280 56,705 56,705 63,560 12,425 10,240 10,862 12,285 13,660 14,433 14,831 6,358 3,357 3,866 Notes Payable 1,080 1,688 2,349 2,613 2,676 11,007 12,838 15,291 13,783 15,952 Capital Leases 1,146,823 982,476 825,056 681,679 535,606 552,326 460,904 229,099 196,025 224,617 Total Primary Government 13.11 11.32 9.86 9.08 7.67 8.25 6.71 3.22 2.74 3.32 Percentage of Personal Income (2) 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) Calculate by dividing Glendale population with Maricopa County population and multiplying by total personal income to arrive at Glendale personal income (data from Schedule 15). Then divide total primary government amount by Glendale personal income to arrive at percentage of personal income. 12,375 2005-06 17,845 2002-03 13,135 6,165 2001-02 2004-05 6,165 2000-01 15,825 8,175 1999-00 2003-04 Water Sewer G.O. Bonds Fiscal Year Business Activities Water Sewer Revenue Bonds 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 1999-00 $ 64,690 Less: Amounts Available in Debt Service Funds(2) $ 12,416 Schedule 11 Total $ Percentage of Net Assessed Value of Property 52,274 6.63 % Per Capita(3) $ 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 2007-08 223,660 30,145 193,515 10.59 778.01 2008-09 207,865 37,418 170,447 7.77 682.30 Note: Principal and interest expenditures for 1999-00 include a current refunding transaction. (1) These figures include general obligation water and 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. (3) Per capita is in actual dollars. 144 City of Glendale, Arizona Net Direct and Overlapping Governmental Activities Debt June 30, 2009 (amounts expressed in thousands) Jurisdiction Peoria Unified School District No. 11 Schedule 12 Net Debt Outstanding $ 221,275 Percentage Applicable to Glendale 22.3000 % Amount Applicable to Glendale $ 49,344 Glendale Elementary School District No. 40 19,020 98.9844 18,827 Deer Valley Unified School District No. 97 177,125 20.0732 35,555 Alhambra Elementary School District No. 68 24,395 18.3476 4,476 Glendale Union High School District No. 205 97,635 23.5470 22,990 - 3.7625 - Maricopa County Community College District 727,390 3.7625 27,368 Phoenix Union High School District No. 210 286,790 1.3692 3,927 Pendergast Elementary School District No. 92 17,930 15.4854 2,777 Tolleson Union High School District No. 214 82,015 5.1412 4,217 Washington Elementary School District No. 6 89,490 3.0113 2,695 186,345 0.0107 20 Agua Fria Union High School District No. 216 51,475 0.4221 217 Litchfield Elementary School District No. 79 35,705 0.6223 222 Maricopa County Dysart Unified School District No. 89 Total Overlapping Debt 2,016,590 172,635 City of Glendale Debt(1) 175,080 175,080 Total $ 2,191,670 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. 145 $ 347,715 146 limit as a percentage of debt limit Total net debt applicable to the Legal debt margin applicable to limit Total net debt Debt limit 20% Type Bonds limit as a percentage of debt limit Total net debt applicable to the Legal debt margin applicable to limit Total net debt Debt limit 6% Type Bonds $ $ $ $ City of Glendale, Arizona Legal Debt Margin Information Last Ten Fiscal Years (amounts expressed in thousands) 23.05% 121,231 36,307 157,538 2000 55.24% 21,155 26,107 47,262 2000 $ $ $ $ 17.02% 145,534 29,847 175,381 2001 41.06% 31,012 21,602 52,614 2001 $ $ $ $ 23.04% 146,852 43,972 190,824 2002 52.70% 27,080 30,167 57,247 2002 $ $ $ $ 40.87% 116,974 80,844 197,818 2003 80.57% 11,533 47,813 59,346 2003 76.23% 15,402 49,399 64,801 $ $ 75.26% 16,991 51,682 68,673 $ 2008 2008 39.55% 66,263 $ $ $ $ 438,735 2,193,675 24.40% 99,500 32,121 131,621 $ $ 46.83% 114,850 101,153 216,003 2004 $ $ Legal debt margin 43.40% 129,570 99,340 228,910 2005 $ $ 44.58% 140,730 113,184 253,914 2006 $ $ 63.00% 101,447 172,751 274,198 2007 $ 41.09% 215,247 150,157 365,404 $ $ 31.53% 300,409 138,326 438,735 2009 300,409 (30,309) $ $ 43,358 109,621 138,326 47.41% 43,261 38,998 82,259 Total net debt applicable to limit $ $ 2009 168,635 68.97% 23,635 52,539 76,174 2007 Less: Amount set aside for repayment of general obligation debt $ $ 2006 Debt applicable to limit: General obligation bonds Debt limit (20% of assessed value) Assessed value $ $ 2004 2005 32,121 Total net debt applicable to limit 99,500 (7,109) Legal debt margin 39,230 131,621 2,193,675 Less: Amount set aside for repayment of general obligation debt $ $ Debt applicable to limit: General obligation bonds Debt limit (6% of assessed value) Assessed value Legal Debt Margin Calculation for Fiscal Year 2009 Schedule 13 This page left blank intentionally. 147 148 52,482 50,549 51,922 53,209 56,144 59,426 66,646 69,490 69,300 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 49,243 $ 40,175 44,247 40,825 35,916 32,100 31,445 30,537 27,620 28,334 24,071 Year $ Expenses(2) Charges(1) Fiscal 1999-00 Less: Operating Utility Service City of Glendale, Arizona Pledged-Revenue Coverage Last Ten Fiscal Years (amounts expressed in thousands) $ 29,125 25,243 25,821 23,510 24,044 21,764 21,385 22,929 24,148 25,172 Revenue $ 9,876 7,252 6,303 6,813 6,495 7,102 9,116 8,463 7,558 3,426 Principal(3) $ 13,539 11,918 9,280 7,143 6,168 4,760 2,745 3,022 3,387 753 Interest(3) Water and Sewer Revenue Bonds Net Debt Service Available 1.24 1.32 1.66 1.68 1.90 1.83 1.80 2.00 2.21 6.02 Coverage Schedule 14 149 - 23,672 20,875 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 $ - - - - - - - - 2,545 4,075 Principal 4,782 3,255 - - - - - - - - $ 2.85 3.23 - - - - - - - - Coverage $ 118,277 127,373 123,602 114,066 98,143 94,277 88,071 85,322 83,739 79,850 Revenue Excise Tax $ 6,575 7,399 2,715 2,785 1,885 2,280 1,240 880 785 615 Principal $ 24,074 17,617 10,343 8,871 9,017 8,530 1,510 515 548 431 Interest Debt Service Excise Tax Revenue Bonds (5) 3.86 5.09 9.47 9.79 9.00 8.72 32.03 61.16 62.82 76.34 Coverage 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) FY 2008 is the first year the City of Glendale has issued transportation bonds. (5) Excise tax revenue bonds include the Municipal Property Corporation and the Western Loop 101 Public Facilities Corporation. $ Interest Debt Service Source: City of Glendale Finance Department - - 2000-01 $ Tax Year 1999-00 Transportation Sales Fiscal Transportation Bonds (4) 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 1999-00 213 3,096 2000-01 224 3,196 2001-02 228 2002-03 Schedule 15 Personal Income $ Per Capita Personal Income(1) (1) 89,771,608 $ Unemployment Rate 28,993 2.3 92,913,124 29,068 3.7 3,295 95,618,598 29,020 5.0 231 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 2007-08 249 3,990 (5) 139,044,312 (3) 34,848 (4) 3.6 2008-09 250 3,988 (6) 139,665,253 (7) 35,021 (4) 8.4 Maricopa County Annual Budget Report for prior fiscal year 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) Estimate provided by City of Glendale Planning Department (3) Estimate based on forecasted increases for Maricopa County of 5%, 5% and 4.1% for 2008, 2007, and 2006, respectively and Maricopa County personal income for 2005 of $120,716,738 and for 2008 of $132,423,154. (4) Calculation based on personal income divided by population. (5) Draft figure for Maricopa County population provided by City of Glendale Planning Department. (6) Maricopa County population for 2008, provided by Arizona Department of Economic Security. (7) Estimate based on Maricopa County personal income for 2007 with no increases for 2008 and 2009. 150 % City of Glendale, Arizona Principal Employers Current Year and Ten Years Ago Schedule 16 2009 Employer Luke Air Force Base Banner Thunderbird Health System Wal-Mart City of Glendale Glendale Union High School District Glendale Elementary School District Deer Valley Unified School District AAA Glendale Community College Younger Brothers Construction Co Inc U.S. Postal Service Arrowhead Towne Center Arizona Public Service Arrowhead Community Hospital Sanderson Ford Total Employees 8,037 2,500 2,020 1,960 1,862 1,684 1,432 1,323 1,220 850 Rank 1 2 3 4 5 6 7 8 9 10 22,888 1999 Percentage of Total City Employment 5.50 % 1.71 1.38 1.34 1.27 1.15 0.98 0.91 0.84 0.58 15.67 % Source: City of Glendale Economic Development Department Department of Economic Security, Research Administration, LAUS Report 151 Employees 6,980 1,125 Rank 1 7 Percentage of Total City Employment 5.93 % 0.96 1,500 1,380 1,300 3 4 5 1.28 1.17 1.11 780 2,160 1,276 500 400 8 2 6 9 10 0.66 1.84 1.08 0.43 0.34 17,401 14.79 % 152 38.00 69.00 33.00 43.00 70.00 104.00 567.00 278.00 6.00 69.00 85.00 65.00 256.00 39.00 67.00 171.00 1,960.00 2009 35.00 86.75 28.50 53.75 78.00 108.50 557.50 263.50 7.00 93.75 99.25 87.76 281.00 45.00 89.25 186.00 2,100.51 2008 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 2007 Sources: City Budget Office City of Glendale Human Resources Department for 2009 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 Function/Program 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 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 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 Full-Time Equivalent Employees as of June 30 2006 2005 2004 2003 City of Glendale, Arizona Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 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 2002 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 2001 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 2000 Schedule 17 153 546,136 88,638 91,841 137,762 91,998 540,352 58,865 48,267 53,493 44,600 6,931 25,851 4,216 24,419 3,900 5,289 146,489 12,902 32,918 2008 137,586 11,990 32,599 2009 84,132 557,342 6,310 152,194 60,914 51,425 25,819 4,322 154,176 12,119 35,169 2007 89,055 596,266 7,888 143,798 63,521 49,517 22,284 5,886 148,633 8,640 34,271 2006 (1) (1) 87,831 620,130 7,079 108,887 57,942 44,441 18,977 2,642 158,507 8,138 33,578 (3) (3) 86,132 601,440 6,330 118,140 56,902 44,681 24,025 3,335 161,722 8,057 34,847 Fiscal Year 2005 2004 81,768 600,477 6,299 88,449 55,718 48,583 23,126 3,379 154,374 7,980 33,956 2003 Note: Water and sewer statistics are contained in Schedule 20 and 21. (1) Fire department figures are on a calendar year, January 1, 2009, through November 3, 2006. (2) Departures/arrivals are based on calendar year prior to 2005-2006. 2005 figures are through October 2005. 2009 figures are through October 30, 2009. (3) Amounts based on calendar year: January 1, 2005, through September 30, 2005. (4) Includes all formats: books, magazines, CD's, DVD's and electronic/dowloadable collection. Source: Various city departments Police Calls for service Bookings Criminal offense reports Fire EMS calls Fire calls Refuse collection Residential curb service (tons per year) Commercial container service (tons per year) Airport Departures/arrivals (2) General government Building permits Library Volumes in collection (4) Transit Dial-A-Ride passengers Function/Program City of Glendale, Arizona Operating Indicators by Function/Program Last Ten Fiscal Years 76,622 606,676 5,428 118,703 49,747 45,798 21,372 3,379 153,691 8,781 34,224 2002 66,527 544,467 7,090 110,631 - 20,722 3,110 144,183 7,744 33,102 2001 69,081 562,532 7,925 112,570 - 19,272 2,958 137,809 773 30,984 2000 Schedule 18 154 Source: Various city departments 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 Function/Program 22,594 17,776 736 99 2,125 21,666 18,126 736 99 2,199 22 58 59 23 3 158 9 2008 3 159 9 2009 City of Glendale, Arizona Capital Asset Statistics by Function/Program Last Ten Fiscal Years 22 95 2,125 736 22,594 17,358 57 3 157 9 2007 25 92 2,058 733 22,594 16,790 57 3 156 9 2006 25 92 2,052 709 22,594 16,328 57 3 156 9 22 93 1,998 702 22,594 15,910 57 3 151 8 Fiscal Year 2005 2004 19 89 1,984 702 22,594 15,408 57 3 156 8 2003 17 89 1,984 692 22,594 14,669 56 3 150 7 2002 21 89 1,984 660 16,351 14,060 55 3 92 7 2001 17 87 1,844 650 16,351 13,450 55 3 101 7 2000 Schedule 19 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2009 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 1 1/2 2 3 4 6 8 12 9.10 11.50 16.40 33.20 58.70 99.50 178.00 355.00 525.00 1, 250.00 $ 11.83 14.95 21.32 43.16 76.31 129.35 231.40 461.50 682.50 1,625.00 Residential Commercial 3/4 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 $ 1.84 2.30 3.22 4.51 $ 2.01 2.01 2.01 2.01 $ 2.39 2.99 4.19 5.86 $ 2.61 2.61 2.61 2.61 Summer Excess Rate Inside Outside City City $ 3.52 3.52 3.52 3.52 SEWER SERVICE RATES Type of Service Inside City $ 31.29 Single Family Dwelling Unit 43.31 Office Building 77.90 Apartment - Average 5 units Apartment - Average 35 units 501.19 Retail/Wholesale 64.50 (1) Per 1,000 gallons SOURCE: City of Glendale Finance Department as of October 1, 2009 155 Outside City $ 35.81 N/A 86.95 166.16 N/A $ 4.58 4.58 4.58 4.58 City of Glendale, Arizona Miscellaneous Water and Sewer Statistics June 30, 2009 Schedule 21 HISTORICAL AVERAGE NUMBER OF WATER ACCOUNTS (1) Fiscal Year Ending June 30 Residential Commercial (2) Total 2000 2001 2002 2003 2004 2005 2006 2007 2008 (3) 50,324 51,169 52,736 53,654 54,349 55,139 55,354 55,395 54,396 4,590 4,649 5,197 5,431 4,361 4,491 4,650 5,305 5,411 54,914 55,818 57,933 59,085 58,710 59,630 60,004 60,700 59,807 2009 (4) 53,523 5,556 59,079 (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. (4) As of October 2009. SOURCE: City of Glendale Finance Department. WATER DELIVERIES Acre Feet Calendar Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Residential 32,779 35,135 34,667 36,044 34,348 34,427 33,567 34,660 34,594 32,278 (1) Commercial 4,739 9,413 8,865 8,865 5,342 8,382 8,282 10,951 9,962 9,456 Other 8,942 893 722 1,031 1,042 1,211 1,298 3,730 1,319 1,308 Total 46,460 45,441 44,254 45,940 40,732 44,020 43,147 49,341 45,875 43,042 (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 No. of Sewer Multi-City Plant (2) Arrowhead Ending June 30 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Accounts Billed 49,021 50,564 52,688 55,506 55,239 55,670 55,995 56,737 64,662 54,936 (MGD) Actual 10.9 11.7 11.4 11.9 10.8 7.9 8.2 8.2 7.8 6.8 (MGD) 2.7 2.8 2.8 2.8 3.0 3.0 3.0 2.9 2.9 2.8 (1) Began operations in 2000. (2) SROG - Sub Regional Operating Group (3) Began operations in 2008. SOURCE: City of Glendale Finance and Utilities Departments. 156 West (1) Oasis (3) (MGD) (MGD) 4.3 4.3 4.3 7.0 7.0 8.5 9.2 9.1 8.6 3.3 5.5 Pyramid Peak (MGD) 16.4 17.6 17.1 17.9 16.2 16.2 28.6 32.4 25.8 27.8 This page left blank intentionally. City of Glendale Finance Department 5850 West Glendale Avenue, Suite 302 Glendale, Arizona 85301 (623) 930-2480