This page left blank intentionally. City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Prepared by the: Budget and Finance Department This page left blank intentionally. City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ INTRODUCTORY SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Mayor Jerry Weiers Councilmembers Jamie Aldama - Vice Mayor, Ocotillo District Bart Turner - Barrel District Ian Hugh, Cactus District Lauren Tolmachoff - Cholla District Ray Malnar - Sahuaro District Joyce Clark - Yucca District Management Staff Kevin Phelps - City Manager Vicki Rios - Assistant City Manager Jamsheed Mehta - Assistant City Manager Prepared by Budget and Finance Department Levi D. Gibson - Director i This page left blank intentionally. City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 TABLE OF CONTENTS I. Page 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) ............................................. 15 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position .............................................................................................................. 27 Statement of Activities .................................................................................................................. 28 Fund Financial Statements: Balance Sheet – Governmental Funds........................................................................................... 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................................................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds.................................................................................................................. 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............................................. 33 Statement of Net Position – Proprietary Funds ............................................................................. 34 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ........ 35 Statement of Cash Flows – Proprietary Funds .............................................................................. 36 Notes to the Financial Statements ..................................................................................................... 37 C. REQUIRED SUPPLEMENTARY INFORMATION Schedule of Net Pension/OPEB (Asset)/Liability ......................................................................... 96 iii Schedule of OPEB Liability – City Plan .................................................................................... 106 Schedule of Pension/OPEB Contributions .................................................................................. 108 Notes to Pension/OPEB Liability and Contributions .................................................................. 112 Budgetary Comparison Schedule – General Fund ...................................................................... 114 Budgetary Comparison Schedule – Transportation Special Revenue Fund ................................ 116 Budgetary Comparison Schedule – Other Special Revenue Fund .............................................. 117 Notes to Required Supplementary Information ........................................................................... 118 D. COMBINING STATEMENTS AND SCHEDULES Budgetary Comparison Schedule – Municipal Property Corporation Debt Service Fund .......... 121 Non-Major Governmental Funds Combining Balance Sheet........................................................................................................ 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances................ 130 Budgetary Comparison Schedules Police and Fire Sales Tax Fund ............................................................................................ 135 Community Development Block Grants Fund ..................................................................... 136 Highway Users Gas Tax Fund ............................................................................................. 137 General Obligation Debt Service Fund ................................................................................ 138 Highway User Debt Service Fund........................................................................................ 139 Transportation Debt Service Fund ....................................................................................... 140 Excise Tax Revenue Debt Service Fund .............................................................................. 141 Certificates of Participation Debt Service Fund ................................................................... 142 Streets Construction Fund .................................................................................................... 143 Fire and Police Construction Fund ....................................................................................... 144 Parks Bond Construction Fund ............................................................................................ 145 Other Construction Fund ...................................................................................................... 146 Development Impact Fees Fund........................................................................................... 147 Cemetery Perpetual Care Fund ............................................................................................ 148 Non-Major Proprietary Funds – Business-Type Activities Combining Statement of Net Position ..................................................................................... 150 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................ 151 Combining Statement of Cash Flows ...................................................................................... 152 Budgetary Comparison Schedules Water & Sewer Fund............................................................................................................ 153 Landfill Fund ....................................................................................................................... 154 Solid Waste Fund ................................................................................................................. 155 Housing Fund ....................................................................................................................... 156 iv City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 TABLE OF CONTENTS Internal Service Funds Combining Statement of Net Position ..................................................................................... 160 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................ 161 Combining Statement of Cash Flows ...................................................................................... 162 Budgetary Comparison Schedules Risk Management Fund ....................................................................................................... 163 Employee Benefits Fund ...................................................................................................... 164 Workers Compensation Fund............................................................................................... 165 Fleet Services Fund .............................................................................................................. 166 Technology Fund ................................................................................................................. 167 E. SUPPLEMENTARY INFORMATION Federal Financial Data Schedule .......................................................................................... 169 III. STATISTICAL SECTION Schedule Page Net Position by Component ............................................................................................... 1 ............. 178 Changes in Net Position ..................................................................................................... 2 ............. 180 Fund Balances – Governmental Funds ............................................................................... 3 ............. 182 Changes in Fund Balances – Governmental Funds ............................................................ 4 ............. 184 Assessed and Estimated Actual Value of Taxable Property ............................................... 5 ............. 186 Direct and Overlapping Governments Property Tax Rates ................................................ 6 ............. 187 Principal Property Taxpayers ............................................................................................. 7 ............. 188 Property Tax Levies and Collections ................................................................................. 8 ............. 189 City Transaction Privilege Taxes (Sales Tax) by Category ................................................ 9 ............. 190 Ratio of Outstanding Debt by Type.................................................................................. 10 ............. 192 Ratios of Net General Bonded Debt Outstanding............................................................. 11 ............. 194 Net Direct and Overlapping Governmental Activities Debt ............................................. 12 ............. 195 Legal Debt Margin Information ....................................................................................... 13 ............. 196 Pledged-Revenue Coverage ............................................................................................. 14 ............. 198 Demographic and Economical Statistics .......................................................................... 15 ............. 200 Principal Employers ......................................................................................................... 16 ............. 201 Full-Time Equivalent City Government Employees by Function/Program ..................... 17 ............. 202 Operating Indicators by Function/Program ...................................................................... 18 ............. 203 Capital Asset Statistics by Function/Program .................................................................. 19 ............. 204 Miscellaneous Water and Sewer Rate Statistics ............................................................... 20 ............. 205 Miscellaneous Water and Sewer Statistics ....................................................................... 21 ............. 206 v This page left blank intentionally. March 31, 2023 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Glendale, Arizona: The Budget and Finance Department is pleased to submit the City of Glendale, Arizona’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The ACFR includes a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP). The financial statements are audited by a firm of licensed certified public accountants in accordance with generally accepted auditing standards (GAAS). City Management assumes full responsibility for the accuracy and completeness of the data, including all disclosures presented in this report. To provide a reasonable basis for making these representations, Management has established a comprehensive internal control framework that is designed to both 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 are free of material misstatement. To the best of our knowledge and belief, this financial report is complete and reliable in all material respects and is designed to fairly represent the financial position of the operations of the various funds of the City. This letter of transmittal is best reviewed in conjunction with the Management’s Discussion and Analysis (MD&A) beginning on page 15. The MD&A provides a narrative introduction, overview, and analysis of the basic financial statements of the City. Independent Audit The City’s financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, 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 City’s independent auditors also perform the Single Audit of the City’s federal grant programs. 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 involving the administration of federal awards. The Single Audit Reporting Package is issued separately from this financial report and is available upon request. Budgetary Controls The annual budget serves as the foundation for the City’s financial planning and control. City departments are required to submit requests for appropriation to the City Manager on or before the last week of December each year. Management uses these requests to develop a budget to propose to the City Council for review and adoption. The City Council is required to hold public hearings on the proposed budget and adopt the final budget by the first Monday in August. The City maintains budgetary controls that are designed to ensure compliance with budgetary and legal provisions contained in the annually appropriated operating and capital project budgets approved by the City Council. The legal level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the city-wide level consisting of the total operating budget and the total capital projects budget, as adopted by the City Council. For budget 1 administrative purposes, the City maintains budgetary controls at the fund and department level. Department Heads may request transfers of appropriations within the same fund for his/her department. However, transfers of appropriations between funds and departments require approval of the City Council and can only occur in the last quarter of the fiscal year. The City adopts an annual appropriated budget for its General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, Permanent Fund, and Enterprise Funds. Budget-to-actual comparisons are provided in this report for each individual governmental fund to demonstrate compliance with this budget. Arizona state law and Glendale City financial policies require that each annual city budget be a balanced budget. A balanced budget means the total expenditures cannot exceed the budgeted period’s total financial resources available. The adopted FY21-22 budget complies with the balanced budget requirement in all City funds. Additionally, the State of Arizona sets a limit on the expenditures of local jurisdictions. Compliance with these expenditure limitations is required. The City submits an expenditure limitation report as defined by the Uniform Expenditure Reporting System (A.R.S. Section 41-1279.07) along with audited financial statements to the State Auditor General within the required timeframe. City of Glendale Profile The City of Glendale, Arizona is the seventh largest city in the state with a population of approximately 257,000 people. Located in the northwestern part of the metropolitan Phoenix area and occupying approximately 62 square miles of land, the City is home to the Arizona Cardinals. The City is also the owner of Camelback Ranch, the spring training facility for the Los Angeles Dodgers and the Chicago White Sox. The City was incorporated in 1910 and has operated under the council-manager form of government since its incorporation. Policy-making and legislative authority are vested in the City Council which consists of the Mayor and six other members. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, Clerk, Attorney, and Municipal Judge. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, 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 City provides a full range of services including police and fire services; water, sewer, and solid waste 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 the Municipal Property Corporation, a legally separate entity, that is reported within the City’s financial statements. Economic Conditions and Strategies Before reviewing the presented financial statements, it is important to consider the local and global economic factors that have impacted the City’s financial position. Primary Revenue Sources The City relies on local and state shared sales tax as well as state shared income tax as primary revenue sources for the City’s operating budget. Local sales tax revenues increased 21.5% this fiscal year compared to the last fiscal year. The growth can be attributed to the improving economy and economic development activities which generated additional construction sales tax revenue. The City’s state shared sales tax revenues also increased 17.2% compared to last fiscal year. 2 Workforce and Unemployment Glendale’s unemployment rate for the month of June 2022 was 3.5% which is slightly lower than the statewide unemployment rate of 4.0%. Glendale’s workforce is concentrated in the following nonfarm sectors: health care services (14.75%), government and social advocacy services (15.33%), retail (16.74%), consumer services (12.30%), education (10.23%), construction (7.03%), finance, insurance and real estate (5.91%), business services (5.16%), and transportation and distribution (3.73%). The unemployment rate was as low as 2.5% in fiscal year 2022. Arizona’s nonfarm employment increased 2.5% over the last year. Economic Development Business attraction, business retention & expansion, redevelopment, business assistance (ombudsman) and Arts & Culture comprise the five pillars of Glendale’s economic development program. Economic development efforts have been focused on the recently annexed Loop 303 area (the new frontier) which provides thousands of acres of developable land. Following the successful completion and operations of major beverage conglomerates in recent years, Glendale has also welcomed other world-renowned corporations such as Nestlé, Jacuzzi and MLILY. The new frontier will also be home to Williams-Sonoma Inc, a project that will be bringing nearly 2,400 jobs to the area. Williams-Sonoma, Inc. plans to use the facility as a fulfillment and distribution center for all Williams-Sonoma, Inc. brands including Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, and Williams Sonoma. The capital investments from these major corporations contributed to the growth in Glendale. The City’s Sports and Entertainment District continues to experience new major additions in the experiential retail space. YAM properties, the commercial real estate company owned by GoDaddy founder Bob Parson, purchased the Westgate Entertainment District in 2018. Since then, YAM Properties made several announcements on the addition of new experiential sites coming to Westgate. Westgate Entertainment District will be home to the state’s first Chicken N Pickle, a concept that brings elevated food offerings paired with the popular game of pickle ball. Just west of the Loop 101 and north of TopGolf, Mario Andretti will bring his signature Andretti Karting. The 96,000 square foot facility will feature a multi-level indoor electric karting track, a state-of-the-art arcade, a two-level laser tag arena, duckpin bowling, a restaurant and bar and a 6,000-square-foot venue space Adding to the expansion of hospitality and entertainment is VAI Resort. Since it was originally announced, this project has nearly doubled in size. Once operational, VAI will be Arizona’s largest hotel. Boasting over 1200 luxury rooms, a $40 Million 360-degree rotating stage, 12 restaurants, 52,000 square foot party island, and much more, this project is expected to bring a capital investment of over $1 billion and 1,800 jobs. In northern Glendale, the Arrowhead area is also seeing additional growth. Following the opening Volvo, Land Rover and Jaguar, Carvana opened their popular car vending machine near 83rd Avenue and Bell Road. Phoenix Children’s Hospital is under construction on their Arrowhead campus that will offer inpatient care, an emergency department, an outpatient surgery center, and a multi-specialty clinic. The $134.7 million investment will bring additional jobs and much needed pediatric services to the West Valley. Round 1, a bowling, arcade, entertainment venue will be opening at Arrowhead Towne Center in 2023. In Downtown Glendale, City Council approved the $72 million Downtown Campus Reinvestment Project. The project calls for a full renovation of City Hall and the surrounding areas. A new Downtown Manager was added to the Economic Development team. The Downtown Manager will lead development and redevelopment activities in Downtown Glendale. A significant portion of the role will be focused on continuing to develop and maintain relationships with merchants, landowners, residents, regional stakeholders, developers and other partners to help facilitate development and business attraction. Several key ownership changes have taken place in Downtown Glendale. These include Saguaro Grill, Retail Therapy, The Horny Toad and the redevelopment of the former Gaslight Inn property into a mixed-use space to include multi-family housing, office and retail. Already under construction near 65th Avenue and Glendale, Mountain Park Health Center will serve over 14,000 patients a year in their 30,000 square foot clinical and administration space. Mountain Park Health Center is a nonprofit community health center that has cared for the Valley of the Sun for more than 40 years. 3 Arts and culture have also been a major focus of the operations. The Arts Commission funded over a dozen performances through the City of Glendale Performing Arts Grants. Ballet Under the Stars once again took the stage at Sahuaro Ranch Park for a free performance with nearly 3,000 people in attendance. “Big Wall. Big Art,” a new IN FLUX piece was installed at City Hall. Through an open call to artists, the mural Rising Together, Glendale Family Advocacy Center. The artists worked with the community and area schools in developing and creating a design that speaks to the transformative powers of advocacy. Financial Strategy As part of the annual budget process, the city prepares a five-year financial forecast for each of the City’s major operating funds. The forecast provides a long-term view of current year budget decisions affecting the City and provides an estimate of fund balance and sensitivity to revenue and expenditure changes over the forecast period. Through sound financial planning and positive economic conditions, the City’s General Fund balance continues to improve. The general fund realized an increase in fund balance of $61.1 million in fiscal year 2022. This increase is primarily due to $49.2 million of sales tax collections which was a result of strong consumer spending boosted by federal stimulus programs aiding economic recovery. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the thirty-fourth consecutive year the City has received this prestigious award, and the thirty-sixth year overall. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized ACFR. 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 ACFR 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 fiscal year beginning July 1, 2021. This was the thirty-fifth consecutive year 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 Budget and Finance Department. I would like to express 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, Levi D. Gibson, CPA Budget and Finance Director 4 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Glendale Arizona For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO 5 Glendale, Arizona & Neighboring Communities To Flagstaff Cave Creek e fre re Ca 17 Scottsdale 60 Phoenix Glendale 51 El Mirage Peoria Sun City Surprise 303 Luke AFB Fountain Hills Paradise Valley 101 101 10 Goodyear 85 202 Sky Harbor Airport Mesa 60 Tempe Chandler 10 To Tucson 6 Gilbert 89 GLENDALE CITY OFFICIALS Jerry P. Weiers Mayor Jamie Aldama Vice Mayor Ocotillo District Ray Malnar Councilmember Sahuaro District Joyce Clark Councilmember Yucca District Lauren Tolmachoff Councilmember Cholla District Ian Hugh Councilmember Cactus District Bart Turner Councilmember Barrel District 7 Kevin Phelps City Manager Glendale Council District Boundaries Pinnacle Peak Rd. Deer Valley Rd. CHOLLA Beardsley Rd. Union Hills Dr. SAHUARO Bell Rd. Greenway Rd. Thunderbird Rd. Cactus Rd. Peoria Ave. Olive Ave. Glendale Ave. OCOTILLO YUCCA Bethany Home Rd. CACTUS BARREL YUCCA Northern Ave. 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. CITIZENS OF GLENDALE Updated July 20, 2022 City Council City Attorney Michael D. Bailey Boards & Commissions Deputy City Manager Rick St. John Fire Department Ken Barnes Interim Fire Chief Police Department Chris Briggs Police Chief Code Compliance City Manager Kevin R. Phelps Deputy City Manager Brent Stoddard Assistant City Manager Jack Friedline Public Affairs Office of Economic Development Brian Friedman Director Department of Organizational Performance Khala Stanfield Director Arts Performance Management & Data Analytics Assistant City Manager Vicki Rios Special Projects Audit Committee Presiding City Judge Nicholas DiPiazza City Clerk Julie Bower Audit Program Manager Michael Kingery Development Services Department Jamsheed Mehta Director Water Services Department Craig Johnson Director Field Operations Department Michelle Woytenko Director Transportation Department Shahid Abbas Director Engineering Department Don Bessler Director Community Services Department Jean Moreno Director Human Resources Department Jim Brown Director Innovation and Technology Department Feroz Merchhiya Director Public Facilities, Recreation & Special Events Department Jim Burke Director Budget and Finance Department Lisette Camacho Director Building Safety Environmental Resources Facilities Management Airport Design Human Services Human Resources Information Technology Civic Center Budget Planning Water Field Operations Fleet Management Street Maintenance Construction Volunteer Services Risk Management Convention and Visitor’s Bureau/ Tourism Finance Water Plant Operations Landfill Traffic Engineering Inspection Library Parks and Recreation Procurement Solid Waste Transit Administration Special Events Land Development COMMUNITY INTEGRITY EXCELLENCE INNOVATION LEARNING We improve the lives of the people we serve every day. 9 This page left blank intentionally. City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ FINANCIAL SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of City Council City of Glendale, Arizona Glendale, Arizona Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Glendale, Arizona (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter – Change in Accounting Principle As discussed in Note XX to the financial statements, effective July 1, 2021, the City adopted new accounting guidance for leases. The guidance requires lessees to recognize a right-to-use lease asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 11 Honorable Mayor and Members of City Council City of Glendale, Arizona Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 12 Honorable Mayor and Members of City Council City of Glendale, Arizona Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of the City’s proportionate share of the net pension and OPEB liability and contributions and the budgetary comparison schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining statements and schedules and the federal financial data schedule are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining statements and schedules and the federal financial data schedule are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 13 Honorable Mayor and Members of City Council City of Glendale, Arizona Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Phoenix, Arizona March 31, 2023 14 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ MANAGEMENT’S DISCUSSION & ANALYSIS (Required Supplementary Information) ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) Management’s Discussion and Analysis The following discussion and analysis is provided to readers of the City’s financial statements as a narrative overview of the financial activities of the City for the fiscal year ended June 30, 2022. This discussion and analysis is designed to assist the reader in focusing on significant financial highlights; provide an overview of the City’s financial activity; identify changes in the City’s financial position; identify material deviations from the financial plan (the approved annual budget); and identify individual fund issues or concerns. The Management’s Discussion and Analysis (MD&A) has a different focus and purpose than the letter of transmittal presented on pages 1-4. It is designed to be read in conjunction with the transmittal letter, the financial statements beginning on page 27, and the accompanying notes to the financial statements. Significant Financial Highlights The financial statements illustrate the following significant financial highlights for FY 2021-22: • The City’s total net position increased by $160,263 or 16.3%. The governmental net position increased by $126,048 or 24.7%, and the business-type net position increased by $34,215 or 7.2%. • The City’s total revenues increased by $82,922 or 13.8%. Program revenues in the form of charges for services, grants, and contributions increased by $59,082 or 22.5%. General revenues increased by $23,840 or 7.0%. • Program revenues from governmental activities increased $47,428 or 43.4%. Program revenues for business-type activities increased $11,654 or 7.6%. • Operating grants and contributions from governmental activities increased $21,026 or 36.3%. The primary reason for this increase was an increase of $19,458 in operating grants and contributions from the AZCares funding and $9,378 from the American Rescue Plan funding the City recognized in revenue to help offset the economic impacts of COVID-19. • Capital grants and contributions from governmental activities increased $16,640 or 91.9%. Non-recurring revenues were recorded in fiscal year 2022 including $26,128 in contributed capital from sidewalks, curb and gutter work. • General revenues from governmental activities increased $39,092 or 12.5%. The primary reason for this increase was an increase of $44,126 or 21.5% in sales tax revenues. The increase in tax revenue reflects strong consumer spending boosted by federal stimulus programs aiding the economic recovery as well as strong performance in construction sales tax. • The total cost of all City programs increased by $35,669 or 7.3%. The increase in program costs is primarily due to increases in community services of $28,306 and street maintenance of $19,967. • The General Fund, a major governmental fund, collected $324,550 in revenues which is an increase of $39,335 or 13.8% from the prior year. This increase was primarily due to an increase in taxes, licenses & permits, and intergovernmental revenues. The total expenditures of the General Fund were $469,618 which is an increase of $259,415 or 123.4%. The increase in general fund expenditures is primarily due to a $251,320 payment to Public Safety Personnel Retirement System to reduce an unfunded liability paid from the issuance of Certificates of Participation. 15 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) 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 required supplementary information intended to provide additional detail to support the basic financial statements. Government-Wide Financial Statements The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for governmentwide financial statements. The Statement of Net Position presented on page 27, provides information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Net position is categorized as net investment in capital assets, restricted by an outside party, and unrestricted. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities found on page 28, presents information that illustrates how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to 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, street maintenance, and interest on long-term debt. The business-type activities of the City include water and sewer services, landfill, solid waste, and housing. Fund Financial Statements The Fund Financial Statements found on page 30, provide more detailed information about the major funds within the City. 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 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. 16 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) The City maintains 17 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 4 major funds. Data from the other 13 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Proprietary Funds The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer, landfill, solid waste, 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 fleet, technology, risk management, workers’ compensation and employee benefit activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide information for the water and sewer fund and the landfill fund, while data from the other two enterprise funds is combined into a single, aggregated presentation. Individual fund data for each of the non-major enterprise funds is provided in the form of combining statements. Conversely, all five 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. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Additional Required Supplementary Information Following the notes to the basic financial statements is Required Supplementary Information (RSI) that further explains and supports the financial information in the financial statements. RSI presents the budgetary comparison schedules for the general fund and major special revenue funds, as well as other required supplementary information related to the City’s pensions and other post-employment benefits. Other The Combining Statements and Individual Fund Statements and Schedules section presents combining statements for non-major governmental funds, non-major enterprise funds, and internal service funds, along with budget to actual comparisons on individual funds. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a City’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1,144,321 as of June 30, 2022. By far the largest portion of the City’s net position reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 17 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) 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. At the end of the current fiscal year, the City is able to report positive balances in the categories of net investment in capital assets and restricted net position. Unrestricted net position for the governmental activities increased by $12,399 or 7.6% over the prior year. The City is addressing the negative unrestricted net position for the governmental activities by holding the line on expenses and decreasing debt service payments as a result of bond refundings in fiscal years 2015, 2016, 2017, 2018, 2021 and 2022. The chart below is a comparison of the City’s net position for fiscal years 2022 and 2021: City of Glendale, Arizona Condensed Statement of Net Position As of June 30, 2022 and 2021 (in thousands) Current and other assets Capital Assets: Non-depreciable Depreciable (net) Non-current OPEB assets Equity in joint venture Right to use lease asset (net) Lease receivable Governmental Activities 2022 2021 $ 610,672 $ 494,221 Business-type Activities 2022 2021 $ 128,310 $ 108,414 $ Total 2022 738,982 $ 2021 602,635 127,283 944,049 6,321 2,580 265 48,839 131,110 939,579 1,773 2,826 - 43,377 598,157 983 38,873 2,138 116,606 492,304 143 40,587 - 170,660 1,542,206 7,304 41,453 265 50,977 247,716 1,431,883 1,916 43,413 - 1,740,009 1,569,509 811,838 758,054 2,551,847 2,327,563 Deferred Outflows of Resources 321,728 101,784 10,556 12,152 332,284 113,936 Current liabilities Noncurrent liabilities Total liabilities 114,374 1,190,244 124,429 1,022,523 38,839 260,737 39,426 254,433 153,213 1,450,981 163,855 1,276,956 1,304,618 1,146,952 299,576 293,859 1,604,194 1,440,811 Deferred Inflows of Resources 121,643 14,913 13,973 1,717 135,616 16,630 488,913 296,434 (149,871) 635,476 471,198 200,500 (162,270) 509,428 439,039 45,051 24,755 508,845 397,187 37,992 39,451 474,630 927,952 341,485 (125,116) 1,144,321 868,385 238,492 (122,819) 984,058 Total assets Net Position: Net investment in capital assets Restricted Unrestricted Total net position $ $ 18 $ $ $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) The following presents a summary of the changes in net position compared to the prior year: Changes in Net Position As of June 30, 2022 and 2021 (in thousands) Governmental Activities 2022 2021 Revenues: Program revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total program revenues $ 42,948 78,929 34,752 156,629 $ 33,186 57,903 18,112 109,201 Business-type Activities 2022 2021 $ 143,071 11,140 10,864 165,075 $ 138,748 11,462 3,211 153,421 Total Primary Government 2022 2021 $ 186,019 90,069 45,616 321,704 $ 171,934 69,365 21,323 262,622 General revenues: Property taxes Sales taxes State shared sales tax Urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings, unrestricted Miscellaneous Total revenues 26,885 249,451 35,086 32,780 11,815 (8,777) 4,195 508,064 26,473 205,325 29,941 36,069 11,976 (464) 3,023 421,544 285 10,557 175,917 227 25,867 179,515 26,885 249,451 35,086 32,780 11,815 (8,492) 14,752 683,981 26,473 205,325 29,941 36,069 11,976 (237) 28,890 601,059 Expenses: General Government Public Safety Public Works Community Services Street Maintenance Interest on long term debt Water and Sewer Landfill Solid Waste Housing Total expenses Excess before transfers Transfers in (out) Increase (decrease) in net position Net position - beginning Net position - ending 26,904 157,622 33,267 64,057 70,250 26,471 378,571 129,493 (3,445) 126,048 509,428 635,476 $ 47,850 166,243 30,451 35,751 50,283 22,056 352,634 68,910 (1,337) 67,573 441,855 509,428 $ 97,895 11,415 20,702 15,135 145,147 30,770 3,445 34,215 474,630 508,845 90,604 11,319 19,310 14,182 135,415 44,100 1,337 45,437 429,193 474,630 26,904 157,622 33,267 64,057 70,250 26,471 97,895 11,415 20,702 15,135 523,718 160,263 160,263 984,058 $ 1,144,321 47,850 166,243 30,451 35,751 50,283 22,056 90,604 11,319 19,310 14,182 488,049 113,010 113,010 871,048 984,058 $ 19 $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) Changes in Net Position The net position of the governmental activities increased by $126,048 and business-type activities’ net position increased by $34,215. Net Position 635,476 Governmental Activities 509,428 508,845 Business-Type Activities 474,630 - 100,000 200,000 300,000 2022 400,000 500,000 600,000 700,000 2021 Revenues and Expenses The chart below shows the performance of the revenues in the governmental activities versus expenses: $200,000,000 Expenses and Program Revenues - Governmental Activities $150,000,000 $100,000,000 $50,000,000 $- General Government Public Safety Public Works expenses Community Services Street Maintenance program revenues Interest on long term debt The City’s general revenues from governmental activities for the fiscal year ended June 30, 2022 increased $39,092 or 12.5%. The increase in revenues is due an increase of $44,126 in local sales tax and $5,145 in state shared sales tax. The increases to tax revenue reflect the continuing economic growth the City and State of Arizona have experienced over the past several years. 20 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) The cost of programs and services for governmental activities increased $25,937 or 7.4%. The increase is primarily due to increases in community services of $28,306 and street maintenance of $19,967. The chart below shows the performance of the expenses and revenues in the business-type activities: $140,000,000 Expenses and Program Revenues - Business-Type Activities $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- Water and Sewer Landfill Solid Waste expenses Housing program revenues The City’s total revenues from business-type activities for the fiscal year ended June 30, 2022 decreased $3,598 or 2.0%. This decrease is primarily due to a decrease of $2,971 of reimbursement of the shared project between the City of Glendale and the City of Peoria to increase the capacity at the Pyramid Peak Water Treatment Plant, the project is paid by the City of Glendale and then invoiced to seek reimbursement on Peoria’s capacity is billed as work is completed. The cost of programs and services from business-type activities for the fiscal year ended June 30, 2022 increased $9,732 or 7.2%. Solid waste expenses increased $1,392 or 7.2%, water and sewer expenses increased $7,291 or 8.0% and landfill expenses increased $96 or 0.8%. The increase in cost of programs and services for business-type activities is mainly contributable to increased maintenance costs. 21 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) City Revenue Categories REVENUES BY SOURCE FISCAL YEAR 2021-22 Urban revenue sharing (state shared income tax) 4.8% State shared sales tax 5.1% Sales taxes 36.5% Auto in-lieu taxes 1.7% Miscellaneous 1.0% Charges for services 27.2% Grants and contributions 19.8% Property taxes 3.9% The pie chart above shows the different types of revenue the City receives and the proportion of each. The majority (63.7%) of the total revenue the City receives comes from charges for services and local sales tax. The second most significant source is grants and contributions (19.8%). City Expense Categories EXPENSES BY FUNCTION FISCAL YEAR 2021-22 Solid Waste 4.0% Water and sewer 18.7% Landfill 2.2% Housing 2.9% General government 5.1% Public safety 30.0% Interest on longterm debt 5.1% Public works 6.4% Street maintenance 13.4% Community services 12.2% The majority of the City’s expenses (62.1%) are incurred in public safety, street maintenance and water and sewer categories. Public safety expenses include those related to police and fire protection services provided to the community and are funded by the general fund. Water and sewer expenses are paid by the enterprise fund which is funded primarily through user paid fees for services. 22 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (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 As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $409,041, an increase of $125,254 or 44.1% in comparison with the prior year. The City implemented Governmental Accounting Standards Board Statement (GASB) 54 during the 2011 fiscal year which impacted the presentation of fund balance components by more accurately classifying the fund balances into five categories: non-spendable, restricted, committed, assigned and unassigned; Note K in the summary of significant accounting policies addresses this in greater detail. In fiscal year 2022 and 2021, $54,905 and $54,511 respectively, of the total fund balance constituted unassigned fund balance. Revenues for governmental functions overall totaled $481,862 in fiscal year 2022, an increase of $75,150 or 18.5om the previous years’ total of $406,712. The increase is primarily due to an increase of $44,811 or 19.3% in taxes and special assessments revenue and an increase in intergovernmental revenues of $27,509 or 22.1%. These revenues are all indicators of the continued healthy economy experienced by the City. Expenditures for governmental functions totaled $645,786 in fiscal year 2022, an increase of $291,330 or 82.2% from the previous year total of $354,456. The increase is primarily due to a $251,320 payment to Public Safety Personnel Retirement System to reduce an unfunded liability paid from the issuance of Certificates of Participation. The city also had an increase of $15,501 or 509.7% in Emergency Rental Assistance Payments funded by the AZCares revenues received. The General Fund is the main operating fund of the City. The General Fund balance increased $61,340 or 44.6%. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $54,905 while total fund balance was $198,863. The General Fund has $394 of its fund balance as non-spendable; $19,795 as restricted; and $123,769 assigned. Per the City’s adopted financial policies, 10% of the general fund operating revenue which totals $32,455 has been earmarked as the Budget Stabilization Reserve and $22,450 has been earmarked as the Operating Reserve. Consistent with the requirements of GASB Statement No. 54, formal Council action was not taken prior to June 30, 2022 to commit these funds; therefore, the funds are reported as unassigned. Overall, the General Fund’s performance resulted in a deficiency of revenues over expenditures of $145,068 in fiscal year 2022. In the prior year, revenues exceeded expenditures by $75,012. This decrease in fund balance is due to the $251,320 payment made to Public Safety Personnel Retirement System. In addition, revenues increased by $39,335 over the prior fiscal year. The increase is primarily due to an increase in taxes and special assessment revenue of $36,955 or 21.0%, an increase of $6,565 or 32.6% in licenses and permits, and an increase in intergovernmental revenue of $4,719 or 6.0%. These revenues are all indicators of the continued healthy economy experienced by the City. The Transportation Special Revenue Fund is used to account for the accumulation of resources for, and the payment of, the City’s public transit program and transportation improvement project costs. The fund had a balance of $93,513 at the end of the fiscal year, an increase of $18,994 from the previous fiscal year. The increase in fund balance was primarily due to the increase in taxes and special assessment revenue of $7,325 or 20.7% and an increase in charges for services of $3,980 or 520.3% including developer agreements in lieu of fees. 23 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) The Other Special Revenue Fund accounts for various activities, including the airport, miscellaneous grants, ARPA and other recreational programs. The fund had a balance of $6,091 at the end of the fiscal year an increase from $5,573 from the previous fiscal year. The Municipal Property Corporation (MPC) debt service fund was established to account for the debt service payments on the bonds that were issued to finance the construction of a new municipal office complex, hockey arena, public safety training center, parking garage, media center, and convention center. The fund had a balance of $9,043 at the end of the fiscal year an increase of $5,235 from the previous fiscal year. The increase was primarily due to the increase in intergovernmental revenue from Arizona Sports and Tourism Authority of $4,278 or 458.0%. Other Non-Major Governmental Funds had a balance increased $39,167 to $101,531 at the end of the fiscal year. This is primarily due to long term debt issuance of $31,375 in the Capital Projects Funds. Proprietary Funds Net position of the enterprise funds increased $34,215 or 7.2%. The enterprise funds’ total net position was $45,052 restricted, $24,754 unrestricted, and $439,039 invested in capital assets. The water and sewer fund accounts for operations, maintenance and construction projects of city-owned water and sewer systems. The fund saw an increase in net position of $29,904 or 6.6% for the fiscal year ended June 30, 2022. The landfill fund was in the Non-Major Proprietary Funds in the previous fiscal year. The net position for the fund increased $2,413 of 24.8% for the fiscal year. The internal service funds account for fleet, technology, risk management, workers’ compensation, and employee benefits provided to other departments. The funds saw an increase in fund balance of $1,965 for the fiscal year ended June 30, 2022. The City’s policy is to fund the worker’s compensation and risk management funds at a 55% confidence level based on the most recent actuarial valuations. General Fund Budgetary Highlights • The City’s budgeted revenues exceeded expectations and were $14,183 higher than the final budgeted amounts. Positive economic trends resulted in taxes and licenses and permits that were $37,304 and $12,124 greater than the final budget, respectively. Charges for services were $202 higher than the final budget. Miscellaneous revenues were $4,711 lower than the final budget. • General Fund expenditures were lower than the final budget by $100,364. The most significant budget variances was in capital outlay which was $84,109 lower than the budgeted amount due to capital project expenditures that did not occur during the fiscal year. • General Fund budgetary fund balance increased by $61,430 or 48.6%. This increase is due to tax revenues, licenses and permits, and intergovernmental revenues. This increase is also related to expenditures being lower than expected, mainly in the public safety and capital outlay categories. Capital Asset and Debt Administration Capital Assets The City’s investment in capital assets (net of accumulated depreciation) as of June 30, 2022, for its governmentaltype activities was $1,071,597 and for the business-type activities was $641,534. 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. 24 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) Major capital asset projects capitalized during the current fiscal year included the following: • • • • • • Pyramid Peak Water Treatment Plan $79,298 Cholla Water Treatment Plan $30,400 Glendale Ave Loop 101 to El Mirage Reconstruction $8,537 Landfill North Cell Liner $7,016 Heroes Regional Park Lake $4,428 Bell Road 51st to 59th Reconstruction $3,401 The following table is a summary of capital assets reflected in the June 30, 2022 financial statements as compared to last year’s financial statements. Capital Assets at Year End (Net of depreciation) (in thousands) Construction in progress Land Water storage rights Artwork Buildings Right to use leased assets - buildings Improvements other than buildings Infrastructure-streets Infrastructure-parks Infrastructure-flood/storm drains Infrastructure-airport Water lines Sewer lines Water treatment plant Sewer treatment plant Meters and services Fire hydrants Machinery and equipment Computer equipment System Purchase Software Automotive equipment Total $ $ Governmental Activities 2022 2021 $ 8,625 11,481 116,019 116,990 2,639 2,639 212,378 219,575 265 94,105 102,479 497,891 478,252 41,127 38,391 64,891 65,060 10,270 9,407 6,905 6,687 178 241 1,661 2,359 14,643 17,128 1,071,597 $ 1,070,689 $ $ Business-Type Activities 2022 2021 $ 26,136 99,466 17,140 17,241 6,508 6,329 5,476 5,062 45,702 49,047 92,720 93,629 80,041 81,707 131,338 232,407 94,585 89,472 18,611 17,766 3,050 4,121 1,760 2,139 641 449 111 111 11,761 15,918 641,534 $ 608,910 $ $ Total Primary Government 2022 2021 $ 34,761 110,947 133,260 134,130 6,329 6,508 2,639 2,639 217,440 225,051 265 143,152 148,181 497,891 478,252 41,127 38,391 64,891 65,060 10,270 9,407 93,629 92,720 81,707 80,041 232,407 131,338 89,472 94,585 17,766 18,611 4,121 3,050 9,044 8,447 627 882 111 111 1,661 2,359 30,561 28,889 1,713,131 $ 1,679,599 The construction commitments at June 30, 2022 were $26,913. Additional information on capital assets can be found in Note V of the financial statements. Long-Term Debt At the end of the current fiscal year, the City had total bonded debt outstanding of $955,430 compared to $696,825 last year, a 37.11% net increase. General obligat ion T ransport at ion revenue bond Excise t ax revenue bonds Municipal Propert y revenue bonds Cert ificat es of Part icipat ion Wat er and sewer revenue bonds/obligat ions GO Landfill bonds T ot al $ $ Government al Act ivit ies 2022 2021 116,405 $ 98,230 54,545 58,655 175,450 187,140 $ Business-T ype Act ivit ies 2022 2021 $ - $ T ot al Primary Government 2022 2021 116,405 $ 98,230 54,545 58,655 175,450 187,140 179,555 252,800 184,850 - - - 179,555 252,800 184,850 - 778,755 528,875 167,760 8,915 $ 176,675 167,950 $ 167,950 167,760 8,915 955,430 167,950 696,825 $ 25 $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2022 (amounts expressed in thousands) The City received a “AA-” underlying rating from Standard & Poor’s, an “A1” underlying rating from Moody’s Investor Services, and an “AAA” underlying rating from Fitch Ratings for its general obligation debt. The senior excise tax bonds are rated “AA+” by Standard & Poor’s and an “A1” by Moody’s. The subordinate excise tax bonds are rated “AA+” by Standard and Poor’s and an “A1” by Moody’s. The senior lien water and sewer revenue bonds are rated “AA” by Standard & Poor’s and “AA” by Fitch Ratings. The subordinate lien water and sewer revenue bonds are rated “A1” by Moody’s, “AA-” by Standard & Poor’s and “AA” by Fitch Ratings. Transportation bonds were assigned an underlying rating of “AA+” by Standard & Poor’s and “A2” by Moody’s. The Arizona Constitution provides that the general obligation bonded indebtedness for a city for general municipal purposes, libraries, economic development, historic preservation, and cultural facilities may not exceed 6% of the total limited property value of the taxable property in that city. Cities may also issue general obligation bonds up to 20% of the total limited property value for supplying 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, 2022, were $137,793 and $407,903, respectively. Additional information on long-term debt can be found in Note X of the financial statements. Next Year’s Budget and Economic Factors The City of Glendale is continuing its efforts to make sound financial decisions that focus on prudent long-range planning in order to maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax rates. The overall goals underlying the city’s financial policies include fiscal responsibility, flexibility, and adherence to the highest accounting and management practices. The adopted fiscal year 2022-23 budget is $1,070,000 a decrease of 13.99% from 2021-22. The decrease is mainly attributable to a decrease in revenue and Public Safety Personnel Retirement contribution related to the issuance of certificates of participation. Overall, the goal of the FY22-23 budget is to continue to improve the city’s financial position while maintaining a high quality of service delivery, improving public safety, encouraging development, maintaining neighborhoods and continuing progress toward the development of a strategic plan to ensure service delivery and resource allocation is aligned with City Council policy throughout the entire organization. Total revenues for fiscal year 2022-23 are projected at $817,643. The major sources of revenue for the City continue to be sales tax, property taxes, and state shared revenues with projected revenues of $159,522, $6,267, and $95,231 respectively. For fiscal year 2022-23, City sales tax is expected to increase by 23.02%. This expectation is based on the continued expansion of Glendale’s sports, entertainment, office and retail destination area, continued attraction of diverse job growth industries to the city, and modest but sustainable economic recovery. 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 Director of Budget & Finance, 5850 West Glendale Avenue, Suite 302, Glendale, Arizona 85301. 26 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ BASIC FINANCIAL STATEMENTS ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. City of Glendale, Arizona Statement of Net Position June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables (net of allowance for uncollectibles) Property taxes Accounts Note Accrued interest Intergovernmental Internal balances Inventories and prepaid items Restricted deposits Restricted cash and investments Lease receivable Non-depreciable capital assets Depreciable capital assets (net) Net OPEB assets Equity in joint venture Total assets $ DEFERRED OUTFLOWS OF RESOURCES Debit amounts related to pensions and OPEB Debit amounts resulting from refunded debt Total deferred outflows of resources LIABILITIES Vouchers payable Retainage payable Matured bonds payable Accrued interest payable Intergovernmental payable Deposits payable Unearned revenue Noncurrent liabilities: Due within one year Due in more than one year Total liabilities DEFERRED INFLOWS OF RESOURCES Credit amounts related to pensions and OPEB Credit amounts resulting from refunded debt Credit amounts related to leases Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Transportation Highway and streets Revenue bond retirement, replacement and extension Perpetual care - nonexpendable Police and Fire OPEB benefits Other purposes Development impact fees Unrestricted Total net position Primary Government Business-type Activities Governmental Activities $ 470,538 $ 29,593 Total $ 500,131 758 15,516 42,955 1,075 39,789 676 523 1,575 37,267 48,839 127,283 944,314 6,321 2,580 1,740,009 18,975 14 119 (676) 4,429 5,658 70,198 2,138 43,377 598,157 983 38,873 811,838 758 34,491 42,955 1,089 39,908 4,952 7,233 107,465 50,977 170,660 1,542,471 7,304 41,453 2,551,847 308,389 13,339 321,728 7,814 2,742 10,556 316,203 16,081 332,284 19,722 81 38,795 15,301 438 4,624 35,413 8,309 1,613 17,520 3,497 448 7,444 8 28,031 1,694 56,315 18,798 886 12,068 35,421 81,000 1,109,244 1,304,618 24,432 236,305 299,576 105,432 1,345,549 1,604,194 73,106 48,537 121,643 9,702 2,140 2,131 13,973 82,808 2,140 50,668 135,616 488,913 439,039 927,952 58,546 94,421 93,520 13,694 6,285 19,795 6,321 3,852 (149,871) 635,476 17,520 11,481 983 15,067 24,755 508,845 58,546 111,941 93,520 13,694 11,481 6,285 19,795 7,304 3,852 15,067 (125,116) 1,144,321 The notes to financial statements are an integral part of this statement. 27 $ $ City of Glendale, Arizona Statement of Activities For the Year Ended June 30, 2022 (amounts expressed in thousands) Functions/Programs Expenses Primary government: Governmental activities: General Government Public Safety Public Works Community Services Street Maintenance Interest on long term debt Total governmental activities Business-type activities: Water and Sewer Landfill Solid Waste Housing Total business-type activities Total primary government Charges for Services $ $ 26,904 157,622 33,267 64,057 70,250 26,471 378,571 $ 97,895 11,415 20,702 15,135 145,147 523,718 $ 30,054 5,201 4,411 3,187 95 42,948 106,476 12,815 21,050 2,730 143,071 186,019 Program Revenues Operating Grants and Contributions Capital Grants and Contributions $ $ $ 11,612 10,159 300 30,405 26,453 78,929 33 11,107 11,140 90,069 General revenues: Property tax for general purposes Property tax for debt service Sales taxes State shared sales tax Urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings unrestricted Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The notes to financial statements are an integral part of this statement. 28 $ 5,127 54 760 28,811 34,752 10,334 530 10,864 45,616 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Activities $ $ 19,889 (142,262) (28,502) (29,705) (14,891) (26,471) (221,942) Business-type Activities $ - Total $ 19,889 (142,262) (28,502) (29,705) (14,891) (26,471) (221,942) (221,942) 18,948 1,400 348 (768) 19,928 19,928 18,948 1,400 348 (768) 19,928 (202,014) 5,987 20,898 249,451 35,086 32,780 11,815 (8,777) 4,195 (3,445) 347,990 126,048 509,428 635,476 285 10,557 3,445 14,287 34,215 474,630 508,845 5,987 20,898 249,451 35,086 32,780 11,815 (8,492) 14,752 362,277 160,263 984,058 1,144,321 $ $ 29 City of Glendale, Arizona Balance Sheet Governmental Funds June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts Property tax Accounts Note Accrued interest Due from other funds Intergovernmental receivable Inventories and prepaid items Restricted cash and investments Lease receivable Total assets General $ LIABILITIES Vouchers payable Retainage payable Compensated Absences - current Intergovernmental payable Due to other funds Deposits Unearned revenue Matured interest payable Matured bonds payable Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - unavailable revenue Deferred inflows of resources - leases Total deferred inflows of resources 177,073 Transportation Special Revenue Other Special Revenue $ $ 94,088 30,304 Municipal Property Corporation Debt Service $ 5,840 Other NonMajor Governmental Funds Total Governmental Funds $ $ 119,856 427,161 165 5,826 1,064 2,479 33,113 136 21 43,493 263,370 530 872 157 95,647 500 11 2,513 10 1,832 5,346 40,516 2,814 42,955 10,275 61,884 593 5,735 3,283 25,139 154,606 758 15,405 42,955 1,075 2,479 39,781 303 37,267 48,839 616,023 9,300 3 1,335 436 4,557 3,975 19,606 2,089 23 15 2,127 2,209 4 33 2 586 67 26,040 28,941 1 4,590 5,295 9,886 2,524 74 32 320 5,383 10,711 33,500 52,544 16,123 81 1,423 438 906 4,624 35,413 15,301 38,795 113,104 1,666 43,235 44,901 7 7 182 5,302 5,484 42,955 42,955 531 531 45,341 48,537 93,878 394 19,795 123,769 54,905 198,863 157 93,356 93,513 44 2,200 2,142 1,705 6,091 9,043 9,043 6,131 95,400 101,531 6,726 219,794 2,142 125,474 54,905 409,041 FUND BALANCES Fund balance: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 263,370 $ The notes to financial statements are an integral part of this statement. 30 95,647 $ 40,516 $ 61,884 $ 154,606 $ 616,023 City of Glendale, Arizona Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2022 (amounts expressed in thousands) Amounts reported for governmental activities in the statement of net position 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 Right to use leased assets used in governmental activities are not financial resources and therefore are not reported in the funds. Right to use assets Accumulated amortization $ $ 2,029,641 (962,826) 409,041 1,066,815 364 (99) 265 Net OPEB asset 6,101 Adjustment to reflect the government joint venture 2,580 Deferred outflow of resouces related to pensions and OPEB 306,147 Deferred outflow reacquisition price of refunding outstanding debt 13,339 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds and shown as an internal balance item. (897) Internal service funds are used by management to charge the costs of workers' compensation, risk management, employee benefits, fleet services and IT projects to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position. 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 Net pension & OPEB liabilities Lease payable Developer payable obligations Compensated absences Bond discount Unamortized premium on debt issuance 19,306 (778,755) (308,782) (261) (5,160) (24,658) 400 (44,688) (1,161,904) Deferred inflows of resources related pensions and OPEB (70,658) Deferred inflows of resources is unavailable revenue that is measurable but not yet available for governmental fund activities is recognized as revenue for governmental-wide activities 45,341 Net position of governmental activities $ 31 635,476 City of Glendale, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) REVENUES Taxes and special assessments Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment Income (Loss) Miscellaneous Total revenues General $ 213,138 26,678 83,325 92 6,354 2,307 (9,355) 2,011 324,550 Transportation Special Revenue $ 42,654 1,750 4,745 391 494 50,034 Municipal Property Corporation Debt Service Other Special Revenue $ 11 36,928 99 655 308 25 279 38,305 $ 5,212 6 5,218 Other NonMajor Governmental Funds $ 21,051 16,587 24,905 39 202 971 63,755 Total Governmental Funds $ 276,843 43,276 152,120 191 11,754 2,654 (8,731) 3,755 481,862 EXPENDITURES Current: General Government Public Safety Public Works Community Services Street Maintenance Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 32,156 397,500 13,687 19,901 1,257 21,225 1,178 4,283 1,842 31,003 14 8 - 3,082 475 3,921 16,108 36,424 402,258 15,529 54,825 38,604 5,117 469,618 (145,068) 67 21,292 28,742 2,682 41,002 (2,697) 5,295 9,181 14,484 (9,266) 33,500 20,838 21,466 99,390 (35,635) 38,795 30,019 29,332 645,786 (163,924) Long term debt issued Refunding debt issued Premium on long term debt issued Payment to refunded bonds escrow agent Proceeds from equipment disposal Proceeds from land sale Leases Transfer in Transfer out Total other financing sources (uses) 252,800 550 (46,942) 206,408 7 (9,755) (9,748) 8 364 2,843 3,215 14,501 14,501 31,375 32,225 5,316 (31,996) 37 1,938 41,516 (5,609) 74,802 284,175 32,225 5,316 (31,996) 602 1,938 364 58,860 (62,306) 289,178 Net change in fund balances Fund balances - beginning Fund balances - ending 61,340 137,523 198,863 18,994 74,519 93,513 518 5,573 6,091 5,235 3,808 9,043 39,167 62,364 101,531 125,254 283,787 409,041 OTHER FINANCING SOURCES (USES) $ $ The notes to financial statements are an integral part of this statement. 32 $ $ $ $ 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, 2022 (amounts expressed in thousands) Amounts for governmental activities in the statement of net position 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 as depreciation/amortization expense. Expenditures for capitalized assets Less current year depreciation/amortization The net effect of various transactions involving capital is to increase net position. Capital contributions Gain (loss) on disposals $ 29,757 (53,487) 125,254 (23,730) 26,128 (1,131) 24,997 Gain (loss) on government joint venture (246) 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 obligations and the related transactions is to increase net position. Long-term debt issued Payment to refunded bonds escrow agent Bond premium Long-term developer liability increase Amortization of bond premium and discount Principal paid on bonds, notes, and leases Leases (295) (316,400) 31,996 (5,316) (267) 4,716 38,795 (364) (246,840) 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. Governmental funds report pension/OPEB contributions as expenditures. However, in the Statement of Activities, pension/OPEB service costs, interest on the pension liability, current year benefit changes, member contributions, expected earnings on plan investments, administrative expenses and recognition of deferred outflows and inflows from pension and OPEB is reported as pension/OPEB expense. Pension/OPEB Contributions Pension/OPEB Expense 4,071 271,954 (24,475) 247,479 Internal service funds are used by management to charge the costs of workers' compensation, risk management, employee benefits, fleet services, and technology projects to individual funds. 1,737 Amortization expense on refunded debt on the statement of activities are not accrued on the governmental funds. (1,168) The net effect of interest in the statement of activities that does not provide current financial resources are not reported as revenues in the governmental funds. Interest income on note receivable Bad debt expense Change in net position of governmental activities (1,117) (4,094) (5,211) $ 33 126,048 City of Glendale, Arizona Statement of Net Position Proprietary Funds June 30, 2022 (amounts expressed in thousands) Water and Sewer ASSETS Current assets: Equity in pooled cash and investments Resticted cash and investments Receivables: Accounts Allowance for uncollectibles Accrued interest Intergovernmental Inventories and prepaid items Total current assets Noncurrent assets: Restricted deposits Restricted cash and investments Lease receivable OPEB assets Capital Assets: Capital Assets Accumulated Depreciation Capital assets, net Equity in joint venture Total noncurrent assets Total assets Business-type Activities Total NonMajor Funds Landfill $ DEFERRED OUTFLOWS OF RESOURCES Debit amounts resulting from refunded debt Debit amounts related to pensions and OPEB Total deferred outflows of resources 13,686 58,604 $ 13,175 - $ 2,732 - Total Enterprise Funds Governmental Activities Internal Service Funds $ $ 29,593 58,604 43,377 - 18,483 (2,742) 14 4,414 92,459 815 (10) 13,980 3,047 (618) 119 15 5,295 22,345 (3,370) 14 119 4,429 111,734 111 8 220 43,716 5,658 11,481 2,138 629 113 107 247 5,658 11,594 2,138 983 1,575 220 1,059,492 (464,527) 594,965 38,873 653,744 746,203 51,235 (18,898) 32,337 32,557 46,537 36,597 (22,365) 14,232 14,479 19,774 1,147,324 (505,790) 641,534 38,873 700,780 812,514 9,377 (4,860) 4,517 6,312 50,028 2,742 5,089 7,831 886 886 1,839 1,839 2,742 7,814 10,556 2,242 2,242 7,450 1,613 1,553 17,520 383 6,785 21,920 3,385 60,609 484 273 517 374 112 1,760 375 312 8 1,573 65 142 2,475 8,309 1,613 2,138 8 1,573 17,520 448 7,444 22,294 3,497 64,844 3,599 662 22,931 27,192 1,414 177,097 18,170 196,681 257,290 248 10,590 3,418 18,196 32,452 34,212 356 6,794 22 7,172 9,647 2,018 187,687 28,382 22 18,196 236,305 301,149 666 2,658 3,324 30,516 6,193 2,140 2,131 10,464 1,064 1,064 2,445 2,445 9,702 2,140 2,131 13,973 2,448 2,448 403,434 21,373 14,232 439,039 4,517 17,520 15,067 629 11,481 38,149 486,280 107 (9,333) 12,147 247 (4,958) 9,521 $ 17,520 15,067 983 11,481 23,858 507,948 220 14,569 19,306 $ 897 508,845 LIABILITIES Current liabilities: Vouchers payable Retainage payable Compensated absences Unearned revenue Due to other funds Matured bonds payable Intergovernmental payable Deposits Estimated claims payable Bonds payable current Interest payable Total current liabilities Noncurrent liabilities: Compensated absences Bonds payable Net pension & OPEB liabilities Other long term debt Estimated closure and post closure costs Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Credit amounts related to pensions and OPEB Credit amounts resulting from refunded debt Credit amounts related to leases Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Debt service Development Impact Fees OPEB benefits Revenue bond retirement,replacement and extension Unrestricted Total net position Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net position of business type activities $ $ The notes to financial statements are an integral part of this statement. 34 $ $ City of Glendale, Arizona Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) OPERATING REVENUES Intergovernmental Metered water sales Sewer service charges Container service Curb service Landfill user fees Self insurance premium Charges for services Miscellaneous Recycling sales Other fees Total operating revenues Business-type Activities Total Non-Major Landfill Funds Water and Sewer $ OPERATING EXPENSES Water Sewer Landfill Housing Closure/post-closure care adjustment Solid Waste Administrative and general Insurance claims and premiums Amortization and depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Impact fees Investment income Interest expense Net loss from joint venture Gain/(loss) on disposal of assets Total nonoperating revenues (expenses) Income (loss) before contributions and transf Capital contributions Transfer in Transfer out Change in net position Total net position - beginning Total net position - ending $ 59,552 41,254 2,248 10,898 113,952 $ 12,410 89 29 70 12,598 $ 11,107 5,094 15,760 2,731 34,692 Total Enterprise Funds Governmental Activities Internal Service Funds $ $ 11,107 59,552 41,254 5,094 15,760 12,410 89 2,248 29 13,699 161,242 46,271 24,975 336 71,582 30,331 18,830 14,532 29,768 93,461 20,491 8,119 1,379 1,846 11,344 1,254 14,885 18,845 2,223 35,953 (1,261) 30,331 18,830 8,119 14,885 1,379 18,845 14,532 33,837 140,758 20,484 28,304 40,510 1,007 69,821 1,761 4,410 247 (4,439) (1,404) 18 (1,168) 19,323 10,334 438 (191) 29,904 456,376 486,280 37 (87) 214 164 1,418 1,072 (77) 2,413 9,734 12,147 1 196 197 (1,064) 530 2,204 1,670 7,851 9,521 4,410 285 (4,526) (1,404) 428 (807) 19,677 10,864 3,714 (268) 33,987 204 204 1,965 1,965 17,341 19,306 $ $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Changes in net position of business-type activities The notes to financial statements are an integral part of this statement. 35 $ $ 228 34,215 City of Glendale, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash received from federal operating grants Cash paid to internal city departments Cash paid to external vendors Cash paid for insurance and in settlement of claims Cash paid to employees for services Net cash provided (used) by operating activities Major Funds Water and Sewer $ 1,072 (77) 995 2,204 1,462 3,666 3,714 (268) 1,462 4,908 - 331 20,665 5,560 136 (16,585) (42,083) 4,410 (6,773) (34,339) 214 8,915 2,073 (10,338) 864 196 (4,912) (4,716) 741 29,580 7,633 136 (16,585) (57,333) 4,410 (6,773) (38,191) (751) (751) $ 233 (310) (77) 28,772 54,999 83,771 $ 37 37 5,984 7,304 13,288 $ 1 1 (974) 3,706 2,732 271 (310) (39) 33,782 66,009 99,791 $ 204 204 7,692 35,685 43,377 $ 20,491 $ 1,254 $ (1,261) 20,484 $ 1,761 33,837 4,887 7,819 (840) (7,620) (795) 7,985 272 (143) 148 1 156 (200) (262) (2) 1,379 67,106 Proceeds from sale of capital assets Bond issuance Bond premium Procceds from leases Principal payments on obligations Acquisition of capital assets and rights Impact fees Interest payments on obligations Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Operating Income (Loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization and depreciation Changes in assets and liabilities: Accounts receivable Intergovernmental receivable Net OPEB asset Net pension and OPEB liability Deferred outflows related to pensions and OPEB Deferred inflows related to pensions and OPEB Inventories and prepaid items Deferred inflows - leases Vouchers and accounts payable Intergovernmental payable Deposits Compensated absences Unearned revenue Other long term liabilities Claims payable Estimated closure and post-closure costs Net cash provided (used) by operating activities Noncash investing, capital and financing activities Loss on joint venture Change in value of joint venture Proceeds from bond refunding Payments to escrow agent $ $ The notes to financial statements are an integral part of this statement. 36 23,102 11,197 (10,746) (15,726) (7,752) 75 29,768 1,846 2,223 5,111 7,731 (536) (4,868) (508) 5,094 272 (143) 33 30 490 (22) 62,943 (4) (92) (830) (86) 878 144 (322) (79) 1,379 4,088 (220) 88 (212) (1,922) (201) 2,013 (29) (29) (12) (99) (262) (2) 75 (1,404) 1,714 44,780 (45,090) $ $ - $ $ - $ $ $ 162,656 11,197 (23,756) (50,382) (32,611) 67,104 Internal Service Funds 438 (191) 247 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES $ Total 12,272 (1,997) (2,594) (3,593) 4,088 Transfers in Transfers out Advances to/due from other funds Net cash provided (used) by noncapital financing activities Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Total NonMajor Funds Landfill 127,282 (11,013) (32,062) (21,266) 62,941 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interest received from investments Net change in restricted deposit Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - beginning of year Cash and restricted cash and investment balances - end of the year Governmental Activities - Business-type Activities - Enterprise Funds (1,404) 1,714 44,780 (45,090) $ 71,774 (1,246) (18,072) (37,070) (7,147) 8,239 1,007 $ 1 (190) (1,719) (167) 1,809 (144) 183 170 5,336 8,239 $ - CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (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 ............................. 38 Compliance – Excess of Expenditures Over Appropriations/Deficits in Fund Equity ............. II ............................. 49 Deposits and Investments ........................................................................................................ III ............................. 49 Note Receivable....................................................................................................................... IV ............................. 51 Capital Assets ........................................................................................................................... V ............................. 52 Construction Commitments ..................................................................................................... VI ............................. 54 Internal Service Funds ............................................................................................................VII ............................. 54 Leases ................................................................................................................................... VIII ............................. 57 Short-Term Debt ...................................................................................................................... IX ............................. 57 Long-Term Debt ....................................................................................................................... X ............................. 57 Landfill Obligations................................................................................................................. XI ............................. 68 Inter-fund Transactions...........................................................................................................XII ............................. 69 Encumbrances....................................................................................................................... XIII ............................. 71 Equity in Joint Venture ......................................................................................................... XIV ............................. 71 Jointly Governed Organizations ............................................................................................ XV ............................. 73 Governmental Fund Balance Components and Fund Type Definitions ............................... XVI ............................. 73 Pensions and Other Postemployment Benefits .................................................................... XVII ............................. 75 Contingent Liabilities and Commitments .......................................................................... XVIII ............................. 91 Tax Abatement ..................................................................................................................... XIX ............................. 91 Implementation of New Accounting Principles..................................................................... XX ............................. 93 Subsequent Events ................................................................................................................ XXI ............................. 93 37 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) I. Summary of significant accounting policies A. 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 form of government. The major operations of the City include providing police, fire, water, and sewer services to citizens. 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 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. The 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. The total debt outstanding of the MPC is expected to be repaid entirely or almost entirely with the resources of the primary government. 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 Budget and Finance Department. B. Government-wide and fund financial statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. There are several types of transactions that are reported in the financial statements as inter-fund 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 & sewer fund to various functions of the general fund, are accounted for as revenue & expenditures or expenses in the funds involved. These revenue & expense transactions are reflected in the appropriate functional activity on the government-wide statement of activities and are not eliminated in consolidation. 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 & administration) should be treated as reimbursement transactions and the revenue & expenditures/expenses reduced in the allocating fund. The costs of these services are reflected in the appropriate functional activity within the government-wide statement of activities and the revenues & expenses are eliminated from the government-wide financial statements to avoid any doubling up effect of these revenues & expenses. Transfers between funds are included in the results of both governmental & proprietary funds (as other financing sources/uses in governmental funds). 38 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Activities 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. All internal balances in the statement of net position have been eliminated, with the exception of those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total governmental column. 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. The internal service funds are eliminated on an entity-wide basis as per GASB Statement 34. C. Form of presentation – fund 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 City, except those required to be accounted for in another fund. The transportation special revenue fund accounts for the City’s public transit system and transportation improvement projects including transportation sales tax. The other special revenue fund accounts for various activities, including the airport, miscellaneous grants, ARPA funds and other recreation programs. The municipal property corporation debt service fund (MPC) accounts for the debt service payments for the bonds that were issued to finance the construction of a new municipal office complex, hockey arena, public safety training center, parking garage, media center and convention center. 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. The landfill fund accounts for the operations and maintenance of the City’s landfill. Additionally, the City reports internal service funds. Internal service funds account for risk management, workers’ compensation, employee benefits, fleet and technology services provided to other departments. 39 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) 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, deferred outflows of resources, liabilities, deferred inflows of resources, 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 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 user’s 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 operations and activities, which are similar to those found in the private sector. The measurement focus is based upon the determination of net income. Enterprise funds: Enterprise funds are used to account for operations, including debt service, 1) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or 2) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The enterprise funds, which the City currently maintains, are the water and sewer, landfill, solid waste, and housing funds. Internal service funds: Internal service funds are used to account for the financing of self-insurance and fleet and technology services provided by one City department to other City departments on a costreimbursement basis. 40 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) D. Measurement focus and basis of accounting The City-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. 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 60 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 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 user’s 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. Resources that have been received before time requirements are met but after all other eligibility requirements have been met are recorded as a deferred inflow. However, resources transmitted before time requirements are met but after eligibility requirements have been met are recorded as deferred outflows. This practice is defined and supported by GASB Statement 63, as it pertains to Financial reporting of deferred outflows of resources, deferred inflows of resources and net position. E. 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. F. Inter-fund transactions Inter-fund transactions, consisting of services performed for other funds or costs billed to other funds are treated as expenditures/expenses in the fund receiving the services and as a reimbursement reducing expenditures/expenses in the fund performing the services, except for sales of water to other City departments, which are recorded as revenue in the Water Enterprise funds. In addition, operating transfers are made between funds to shift resources from a fund legally authorized to receive revenue to a fund authorized to expend the revenue. 41 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is classified as due to/from other funds (current portion of inter-fund advances) and advances to/from other funds (noncurrent portion of inter-fund advances). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. 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 expenditure at time of purchase (i.e., the purchase method) for budgetary purposes. At June 30, 2022, the postage portion of the general fund supplies inventory was $6. Certain expenditures are recorded for financial reporting purposes as prepaid items. Special reporting treatment is applied to governmental fund inventories and prepaid items to indicate that they represent amounts that are not in spendable form, even though they are a component of current assets. Such amounts are presented as a component of non-spendable fund balance. 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 position, because they are maintained in separate bank accounts and their use is limited by applicable debt covenants and the escrow agreement. 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. Restricted assets also include cash held at the Maricopa County Treasurer for the Racketeer Influenced and Corrupt Organizations Act (RICO). RICO funds are limited by state and federal law to qualified expenses related to fighting and preventing drug use and organized crime. 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 acquisition 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. The remainder of this page left blank intentionally. 42 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Capital assets are depreciated/amortized using the straight-line method over the following estimated useful lives: Assets Buildings Right to use leased assets - buildings Improvements other than buildings Infrastructure Machinery and equipment Automotive equipment Software Computer equipment Useful Life (Years) 30 3 10-20 10-100 5-8 6-8 3 3-5 Capital assets transferred between funds are transferred at their carrying value (cost less accumulated depreciation) as of the date of the transfer. J. Water rights The City has entered into an agreement with Salt River Pima-Maricopa Indian Community (SRP-MIC) for the rights to 1,814 acre-feet of water each year through 2099. These rights, costing $2,693, are being amortized over 40 years on a straight-line basis starting January 1, 2000. Current year amortization was $67. The net book value of water rights as of June 30, 2022, is $1,178. 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, 2022, the City has capitalized payment of $4,463 for these water rights. Current year amortization was $112. The net book value of these water rights as of June 30, 2022, is $3,124. 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, 2022, costing $2,027, are a permanent right and are considered to have an indefinite useful life. As such, they are not amortized; therefore, cost and net book value are equal to $2,027. K. Governmental fund balance components The components of governmental fund balance consist of the following: Non-spendable amounts are the portion of net resources that cannot be spent because of their form such as inventories and prepaid items. Also included is the portion of net resources that cannot be spent because they must be maintained intact pursuant to legal and contractual requirements such as the cemetery permanent fund. Restricted are amounts that are subject to externally enforceable legal restrictions imposed by parties outside the government such as creditors, grantors, contributors, and other governments through laws and regulations. Examples of restricted fund balance are amounts held to pay for bonded construction projects, debt service, and excise tax revenues collected for voter approved transportation expenditures. 43 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Committed are amounts that are constrained by limitations imposed by the highest level of decision making authority, namely Mayor and Council and require approval by the same level of authority through an ordinance to remove. Amounts must be committed prior to the fiscal year end. An example of committed fund balance is amounts for artwork. Assigned are amounts that are constrained by limitations imposed by management based on the intended use of the funds. The city manager has been given authority to assign funds as needed through the financial policies adopted in the annual Budget Book approved by Mayor and Council. An example of assigned fund balance are amounts for equipment replacement or general government capital projects. Unassigned are amounts for any other purpose. If resources were not assigned, they could not be properly reported in a fund other than the general fund. Therefore, only the general fund can report a positive amount of unassigned fund balance. Any governmental fund in a deficit position could report a negative amount of unassigned fund balance. When both restricted and unrestricted resources are available for specific expenditures, restricted resources are considered spent before unrestricted resources. Within unrestricted resources, committed and assigned are considered spent (if available) before unassigned amounts. On the government-wide financial statements, only restrictions imposed by external sources are shown as restricted net position. L. Net position The government-wide and proprietary fund financial statements use a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted. Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt and other liabilities that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. Restricted Net Position – This category represents net position that has external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments, and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose. M. 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 inflows of resources. The remainder of this page left blank intentionally. 44 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Property Tax Calendar Lien date Levy (assessment) date (third Monday in August) Due dates: First half of assessment Second half of assessment Penalties and interest added (collection dates): First half of assessment Second half of assessment January 1, 2021 August 17, 2021 October 1, 2021 March 1, 2022 November 1, 2021 May 1, 2022 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. The debt service fund balance cannot exceed 10% of the next year’s debt service payment. 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, 2022, is as follows: Fund General fund General obligation debt service fund Total $ $ Rate 0.39 1.34 1.73 N. Compensated absences Vacation time is accumulated up to a maximum of 10 workweeks and compensatory time is earned in lieu of cash payment for overtime. 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. Employees separating from the City receive 100% of accrued vacation time. Sick leave is accumulated without limit and can be used in the event of an illness of the employee or their 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 50% of their accrued sick time contributed to a mandatory Retiree Health Savings plan based on their average hourly wage over the last 36 months. Employees who separate from service and have five or more years of service will receive one-third of their sick leave balance based on their average hourly wage over the last 36 months in a cash payout. Represented Fire and Police MOU employees who retire and have ten or more years of service will have 50% of their accrued sick time contributed to a mandatory Retiree Health Savings plan based on their average hourly wage over the last 36 months. Represented Fire and Police MOU employees who retire are paid 100% of accrued vacation time. 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 45 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) June 30, 2022, 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. O. Deferred outflow and deferred inflow of resources In addition to assets, the statement of net position will report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflow of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government only has two items that qualify for reporting in this category. It is the deferred charge on refunded debt and deferred outflows related to pensions and OPEB reported in the government-wide statement of net position. In addition to liabilities, the statement of net position will report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has four items that qualify for reporting in this category. It is unavailable revenue, which arises only under a modified accrual basis of accounting, deferred inflow related to leases, the deferred inflow related to pensions and other post-employment benefits, and amounts resulting from refunded debt. Amounts that are reported as deferred outflows are shown as a separate balance sheet section following the assets. Similarly, amounts shown as deferred inflows are shown in a separate balance sheet section following liabilities. P. 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 position. Bond premiums and discounts are reported as a long-term liability 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. Q. Operating revenues and expenses Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services, leases, 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. Housing operational grants provide decent, safe, and affordable housing to eligible, low-income families and individuals by providing a voucher to rent a qualifying unit in the City of Glendale. 46 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) 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 non-operating revenues and expenses. R. Lease agreements The city has entered into lease agreements and are accounted for based on the principle that leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. S. Postemployment benefits For purposes of measuring the net pension and other postemployment benefits (OPEB) assets and liabilities, deferred outflows of resources and deferred inflows of resources related to pensions and OPEB, and pension and OPEB expense, information about the plan’s fiduciary net assets and additions to/deductions from the plan’s fiduciary net assets have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T. Deferred compensation The 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). On February 12, 2013 the adoption of a new contract was approved by the Mayor and City Council which allowed the plan to be administered solely by the third-party administrator Empower Retirement (Empower) a division of Great West Life & Annuity Insurance Co (Great West). 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. 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. In addition, the plan assets are not included as a fund of the City. The Retiree Health Savings (RHS) Plan was originally adopted on July 1, 2008, and amended and restated on February 12, 2013, by Mayor and Council. The purpose of the Plan is to provide certain Employees with an opportunity to receive reimbursement for certain Health Care Expenses as provided in this Plan. It is the intention of the Adopting Employer that the benefits payable under this Plan be eligible for exclusion from the gross income of Participants as provided by Sections 105(b) and 106 of the Code. In addition, it is the intention of the Adopting Employer that the Plan qualify as a Health Reimbursement Arrangement (HRA) under IRS Revenue Ruling 202-41 (June 26, 2002) and IRS Notice 2002-45 (June 26, 2002). The provider for this RHS plan is Educator Benefit Consultants (EBC). The contributions to this Plan are detailed in the Compensated Absences (N) section on this document. 47 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) U. Elected Officials’ Defined Contribution Retirement System (EODCRS) HB 2608 signed in July of 2013 closed the Elected Officials’ Retirement Plan (EORP) to new members and established the new Elected Officials’ Defined Contribution Retirement System (EODCRS) effective January 1, 2014 (A.R.S. Title 38, Chapter 5, Article 3.1). In addition to this new plan, the EODCRS Disability Program was also established (A.R.S. Title 38, Chapter 5, Article 3.2). EODCRS is a nonERISA 401(a) plan type. If a person is elected, appointed, or hired on or after January 1, 2014, does not have money on account with EORP, does not have money on account with ASRS or does not timely opt out of the EODCRS to return to ASRS, if applicable, the elected official must be automatically enrolled in the EODCRS. This includes any elected official who has already retired from EORP and/or ASRS. The investment options available to EODCRS members will be administered by Nationwide Retirement Solutions (NRS). The elected official will also contribute to and participate in the EODCRS Disability Program administered by PSPRS. As prescribed in ARS § 38‐727, if a person is appointed, elected, or hired on or after January 1, 2014 and does not have money on account with the EORP, but has money on account with the ASRS, that person has the option to return to the ASRS. The member has the option to participate in either the EODCRS or the ASRS Plan with each term. That decision is irrevocable during the term in which that election was made. Additionally, the elected official will contribute to and participate in the Long‐Term Disability Program administered by ASRS. To choose the ASRS, the person must fill out a form provided by PSPRS opting out of the EODCRS. This election must be made within 30 days after that person’s term begins and returned to PSPRS. The City was required by statute to contribution 49.86 percent of elected officials participating as an ASRS members’ annual covered payroll to the ASRS Legacy As of January 1, 2014, the employer rate for all employers contributing on behalf of their elected officials vary based on the path the employee is eligible for. Pursuant to ARS § 38‐810, subsection C, and as described above, that rate may be split a number of ways depending on which plan (or path) your elected official will belong to. Employee rates will vary, also dependent upon the path your elected official is on, and all are pre‐tax contributions. The rates for the respective disability programs are separate from the 61.43% employer rate and are contributed on an after‐tax basis. The 61.43% employer rate is set by statute; however, the Board of Trustees of PSPRS is required to monitor this rate to inform the Legislature annually of its continued ability to pay the unfunded liability of the EORP legacy costs, so there is the possibility of this rate changing from time‐to‐time. Additionally, the rate for the disability program will also be reviewed and revised annually to meet its actuarially determined costs. For the year ended June 30, 2022 active EODCRS members were required by statue to contribute at the rate of 8.125 percent (8 percent to the DC plan and .125 percent for the disability program) of the members’ annual covered payroll. The City was required by statue to contribute at the rate 6.125 percent (6 percent to the DC plan and .125 percent for the disability program) of the active members’ annual covered payroll. The maximum annual contribution limits are in accordance with the IRS regulation for defined contribution plans. Employee and employer contributions are immediately vested. In addition, the City was required by statute to contribution 55.43 percent of the EODC members’ annual covered payroll to the EORP Legacy. The remainder of this page left blank intentionally. 48 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) V. Investments The City uses 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 County Treasurer is not subject to custodial credit risk. 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 decrease in the fair value of total investments during the fiscal year ended June 30, 2022, was $9,668. II. Compliance - Excess of expenditures over appropriations/deficits in fund equity The City ended the fiscal year June 30, 2022, with a deficit net position of $2,818 in the fleet services internal service fund. This deficit will be funded by increases in user premium charges in the next fiscal year. The City ended the fiscal year June 30, 2022, with expenditures exceeding appropriation in the amount of $553 in the general obligation debt service fund. This is due to the 2022 refunding of a general obligation bond. III. Deposits and investments The City maintains a cash management pool for its cash and cash equivalents in which each fund and/or account or sub-account of a fund participates on a dollar equivalent basis. Deposits At year-end, the carrying amount of the City’s deposits was $200,660 and the bank balances were $201,228. The difference of $567 represents deposits in transit, outstanding checks, and other reconciling items. At year-end all of the City's deposits were covered by Federal depository insurance and collateral held in the City’s name. Investments State Statutes and the City’s investment policy authorize the City to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, repurchase agreements, commercial paper (A-1/P-1 rated), interest-earning money market accounts, certificates of deposit, and the State of Arizona Local Government Investment Pool (LGIP). Investments may not exceed five years to maturity from the date of purchase. 49 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) The City’s investment in the LGIP is valued using net asset value (NAV) per share (or its equivalent), which approximates the fair value of the holdings provided by the Arizona State Treasurer’s Office at June 30, 2022. Unlike more traditional investments, the City’s holdings in the LGIP, measured at a NAV approximately $1 per share (or equivalent) are not individually identifiable. As of June 30, 2022, the City had the following investments: Investment Type Corporate Bonds U.S. Agencies U.S. Treasury Arizona LGIP-State Pool Grand total investments Cash deposits Cash with fiscal agents Total deposits and investments 0-1 $ 11,647 8,200 72,524 24,953 $ 117,324 Investment Maturities (in years) 2-3 Over 3 1-2 $ 12,219 $ 12,130 $ 10,350 12,914 3,871 29,374 22,547 60,350 $ 51,943 $ 47,591 $ 64,221 Fair Value $ 35,996 35,335 184,795 24,953 $ 281,079 200,660 133,090 $ 614,829 Investment Fair Value Level: Investments using fair value measurement guidelines established by generally accepted accounting principles recognize a three-tiered fair value hierarchy as follows: • • • Level 1 – Financial assets are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of financial assets. The inputs include those traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury and other US. government and agency mortgage-backed securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 – Financial assets are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. Level 3 – Financial assets are valued using pricing inputs which are observable for the asset, inputs that reflect the District’s own assumptions about the assumptions market participants would use in pricing the asset. The City’s investments are classified as follows: Fair Value Measurements Using Levels Investment at fair value level Level 1 Corporate Bonds $ U.S. Agencies 6,156 U.S. Treasury 184,795 Total Investments at fair value level $ 190,951 External Investment Pools Measured at Fair Value State Treauser's Investment Pool Total Investments Level 2 $ 35,996 29,179 $ 65,175 Level 3 $ $ - Totals $ 35,996 35,335 184,795 256,126 24,953 $ 281,079 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 five years. The City also purchases securities to be laddered with staggered maturity dates. 50 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Credit risk: The City’s investment policy requires commercial paper to have a rating of at least A-1 by Standard and Poor’s, P-1 by Moody’s, or F1 by Fitch. Corporate bonds must have a rating of at least A or better by Standard and Poor’s, A2 by Moody’s, or A by Fitch. As of June 30, 2022, the City’s investments were rated by Moody’s Investor Service and Standard & Poor’s as follows: Investment Type U.S. Treasury U.S. Agencies Corporate U.S. Treasury Corporate Corporate U.S. Agencies Corporate Corporate Corporate Corporate Corporate S&P Rating AA+ AA+ A+ A-1+ AA A A-1+ AA+ AAA AAAA AA- Moody's Rating Aaa Aaa A1 P-1 A1 A2 P-1 Aaa Aaa Aa2 Aa2 Aa3 % of Total Investments 67.87% 11.39% 4.62% 4.28% 2.75% 2.73% 2.40% 1.23% 1.17% 0.78% 0.39% 0.39% Weighted Average Maturity (Years) 2.20 2.14 1.33 0.20 2.79 1.55 0.89 1.05 1.61 0.67 0.99 0.59 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 United States Treasury Total Arizona LGIP Total Federal National Mortgage Association Total Investment Type U.S. Treasury Arizona LGIP U.S. Agencies $ Amount 184,795 24,953 18,565 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. IV. Note receivable On October 22, 2008, the Western Loop 101 Public Facilities Corporation (PFC), a blended component of the City dissolved in fiscal year 2016, issued $199,750 in third lien excise tax revenue bonds to construct a baseball spring training facility. On October 1, 2009, the City finalized an Intergovernmental Agreement with the Arizona Sports and Tourism Authority (AZSTA) for the Glendale Spring Training Facility Project. The AZSTA agreed to contribute to the City $60,000 for the construction costs plus interest at 4.13% per annum payable semi-annually. A note receivable for the agreed upon contribution amount plus accrued interest on the note in the amount of $98,027 less an allowance for doubtful accounts in the amount of $55,072 has been recorded at June 30, 2022. In the year 2020, the AZSTA began making payments to the City. Payments of $8,352 have been received by the City on the note as of June 30, 2022. On December 27, 2012, the City of Glendale Municipal Property Corporation (MPC), a blended component unit of the City, issued subordinate excise tax revenue bonds to refund the $199,750 third lien excise tax revenue bonds that were previously issued by the Western Loop 101 Public Facilities Corporation (PFC). The issuance of $183,405 in tax-exempt bonds and $16,850 in taxable bonds achieved debt service savings and lowered the next five fiscal years’ annual rental payments under the agreement. In fiscal year 2016, the AZSTA receivable was recorded in the MPC debt service fund. 51 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) V. Capital assets A summary of capital asset activity, for the government-wide financial statements, for the year ended June 30, 2022, is as follows: Governmental activities Non-depreciable assets: Construction in progress Land Artwork Total non-depreciable assets Balances June 30, 2021 $ Depreciable assets: Buildings Right to use leased assets-building 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 11,481 116,990 2,639 131,110 Increase $ 26,617 26,617 Balances June 30, 2022 Decrease $ (29,473) (971) (30,444) $ 8,625 116,019 2,639 127,283 390,185 285,333 877,394 93,921 80,721 21,341 41,657 5,528 6,911 53,398 1,856,389 2,277 364 1,188 43,609 5,892 984 1,340 2,282 31 1,417 59,384 (813) (1,033) (36) (1,792) (3,674) 392,462 364 286,521 921,003 99,813 81,705 22,681 43,126 4,526 6,875 53,023 1,912,099 Less accumulated depreciation/amortization for: Buildings (170,610) Right to use leased assets-building Improvements other than buildings (182,854) Infrastructure - streets (399,142) Infrastructure - parks (55,530) Infrastructure - flood/storm drains (15,661) Infrastructure - airport (11,934) Machinery and equipment (34,970) Computer equipment (5,287) Software (4,552) Automotive equipment (36,270) Total accumulated depreciation/amortization (916,810) (9,474) (99) (9,562) (23,970) (3,156) (1,153) (477) (2,058) (94) (698) (3,753) (54,494) 807 1,033 36 1,643 3,519 (180,084) (99) (192,416) (423,112) (58,686) (16,814) (12,411) (36,221) (4,348) (5,214) (38,380) (967,785) 4,890 (155) 944,314 Total depreciable assets, net 939,579 Governmental activities capital assets, net $ 1,070,689 52 $ 31,507 $ (30,599) $ 1,071,597 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Balances June 30, 2021 Increase Decrease 39,085 8,388 519 101 48,093 $ (114,206) (7,116) (121,322) Balances June 30, 2022 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 99,068 100 298 17,140 116,606 Depreciable assets: Buildings Water 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 System Purchase Automotive equipment Total depreciable assets 17,723 9,183 91,804 156,100 160,466 283,872 165,432 38,229 6,178 6,014 1,597 1,176 30,284 968,058 7,123 4,729 5,713 112,726 5 165 1,205 1,066 124 7,041 139,897 (8) (1) (314) (348) (3,337) (4,008) 17,723 9,183 98,927 160,829 166,171 396,598 165,436 38,394 7,383 6,766 1,373 1,176 33,988 1,103,947 Less accumulated depreciation/amortization for: Buildings Water 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 System Purchase Automotive equipment Total accumulated depreciation/amortization (12,247) (2,675) (46,102) (63,380) (80,425) (152,534) (70,847) (19,618) (3,128) (4,254) (956) (1,065) (18,523) (475,754) (414) (179) (3,778) (3,833) (4,039) (11,657) (5,117) (1,010) (134) (594) (281) (2,801) (33,837) 13 221 313 3,254 3,801 (12,661) (2,854) (49,880) (67,200) (84,464) (164,191) (75,964) (20,628) (3,262) (4,627) (924) (1,065) (18,070) (505,790) Total depreciable assets, net 492,304 106,060 (207) 598,157 154,153 $ (121,529) Business-Type activities capital assets, net $ 608,910 53 $ $ $ $ 23,947 1,372 817 17,241 43,377 641,534 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Depreciation and amortization were charged to functions/programs as follows: Governmental activities: General Public safety Public works Street maintenance Community services Total depreciation and amortization expense $ $ Business-Type activities: Water and sewer Landfill Solid Waste Housing Total depreciation and amortization expense $ $ 16,857 4,959 15,364 12,568 4,746 54,494 29,768 1,846 1,957 266 33,837 Included in the water and sewer depreciation amount is $179 amortization of water storage rights. VI. Construction commitments The City has active construction projects as of June 30, 2022. 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: Construction Project Spent-to-Date Commitment $ 1,456 $ 1,140 General government Community services 1,081 3,984 Public Safety 682 2,344 Public works 222 27 Street maintenance 1,891 2,172 Water and sewer facilities 23,947 16,381 Landfill 1,373 865 $ 30,652 $ 26,913 Total primary government VII. Internal service 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, and loss and destruction of assets. The City’s risk management fund purchases excess or commercial insurance as follows: automobile and general liability, errors and omissions, employment practices liability, employee benefit liability, employee benefits wrongful acts, law enforcement liability, and products completed operations hazards with limits up to $40,000. The risk management fund was fully self-insured through June 30, 1998, for tort liability losses. Effective July 1, 1998, the City purchased excess insurance. Currently the excess insurance liability coverage has a $1,000 self-insured retention. The fund also purchased commercial insurance for airport owners and operators’ liability with limits up to $25 and no deductible, aviation drones coverage with limits up to $1,000 with no deductible, crime coverage with limits up to 54 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) $10,000 with a $50 deductible, fiduciary liability covering the Deferred Compensation Committee with limits up to $5,000 and with a $5 deductible, and public employees blanket bond covering the Risk Management and Workers’ Compensation Trust Fund Board with limits up to $10. Property coverage for damage or destruction of city assets is up to $927,594 with varying sub limits and varying deductibles from $25 up to $500. The property coverage includes all-risk property, builder’s risk, automobile physical damage, boiler and machinery, pollution and cyber (with a $2,000 liability limit). Two excess cyber liability policies were also purchased with limits up to $4,000 and a $25 deductible or 100 notified individuals. Funds receiving insurance coverage pay monthly premiums to the risk management fund based upon a budget model taking into consideration actuarial analysis and projections, prior loss experience, staffing, and operating budget. Premium payments to insurance carriers, loss control, and risk management expenses are made directly from the risk management fund. Insurance coverage has not been significantly reduced in recent years and settled claims have not exceeded insurance in any of the last three 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 statutory coverage for each injured workers’ compensation claim with a $2,000 self-insured retention, $2,500 self-insured retention for presumptive loss, and employers’ liability with a limit of $2,000 per occurrence. Funds receiving insurance coverage pay monthly premiums to the workers’ compensation fund based upon a budget model taking into consideration actuarial analysis and projections prior loss experience, staffing level, operating budget and the National Council on Compensation Insurance workers’ compensation manual rates. Premium payments to insurance carriers and loss control and workers’ compensation expenses 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. Active employees’ premiums are collected through contributions from employee paychecks and department budgets. Retirees contribute 100% of the premiums, COBRA participants contribute 100% of premiums plus 2% administration fee for their insurance benefit coverage. Premiums for the medical, vision, dental, and life insurance plans are determined prior to each renewal period based on the actuarial valuation of the costs of claims, administration of the plan, demographics of the group, plan design changes and any new mandated benefits. The City is self-insured on the medical plan with an aggregate stop-loss of 125% and a specific stop-loss of $200. If claims exceed the stop-loss amounts the policy will reimburse the plan for the claims in excess of that amount. Premiums for the self-insured medical plan are set prior to the beginning of each plan year equal to 125% 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. 55 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (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 and recoveries for salvage and subrogation. The City’s workers’ compensation self-insurance program liability includes recoveries related to subrogation. Salvage and subrogation are immaterial to employee benefits selfinsurance programs and are not incorporated into the liability. The risk management trust fund and workers’ compensation self-insurance programs do include a provision for unallocated claim adjustment expenses. The workers’ compensation fund includes payment of 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 payout and other economic and societal factors. The risk management fund and the workers’ compensation fund are funded to meet a 55% confidence level of the most recent actuarial report. The City reports the estimated liability in net present value dollars using a future investment yield assumption of .51%. These liabilities are reported in the internal service funds at their actuarial determined liability of $22,931 as of June 30, 2022. Changes in the balances of claims liabilities during the past two years are as follows: Risk Management 2022 2021 Workers' Compensation 2022 2021 Unpaid claims, beginning of fiscal year $ 3,731 Current year claims and changes in estimate 6,998 Claims payments (3,524) $ 4,458 $ 9,321 $ 7,542 1,777 (2,504) 4,060 (2,181) 4,064 (2,285) Balance at fiscal year end $ 3,731 $ 11,200 $ 9,321 $ 7,205 Employee Benefits 2022 2021 $ 4,543 $ 29,452 (29,469) $ 4,526 4,691 28,817 (28,965) $ 4,543 E. Fleet Services The Fleet Services Fund was established to track income and expenses of the internal services provided to city departments. The Fleet Services Fund specifically covers vehicle maintenance needs and fuel purchased for city vehicles. F. Technology The Technology Fund and the Technology Projects Fund are used to track income and expenses of the internal services provided to city departments for telephone services, information technology services, and support. The Technology Fund specifically supports all the city’s computers, hardware, and software. The Technology Fund is designed to balance, with the rates (revenues) set to recover the actual expenses each year. The Technology Projects Fund may accrue net position in anticipation of future upgrades and potential carry over of project funding. 56 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) VIII. Leases as Lessor The City, as a lessor, has entered into lease agreements involving land, airport facilities, buildings, and billboards. Leases range from 5-months to 741-months. An initial lease receivable was recorded in the amount of $52,765. As of June 30, 2022, the value of the lease receivable is $50,977. The leases have interest rates between 0.316% and 3.397%. The value of the deferred inflow of resources as of June 30, 2022 was $50,668, and Glendale recognized lease revenue of $2,357 and lease interest revenue of $1,217 during the fiscal year. The lease receivable does not include any variable payments. IX. GOVERNMENTAL ACTIVITIES: Deferred Inflow of Resources Land Buildings Land Improvements Other Total Deferred Inflow of Resources Balance as of July 1, 2021 42,285 3,297 1 4,908 50,491 Additions 219 41 260 Reductions 1,270 573 370 2,214 Balance as of June 30, 2022 41,234 2,764 1 4,538 48,537 BUSINESS-TYPE ACTIVITIES: Deferred Inflow of Resources Land Other Total Deferred Inflow of Resources Balance as of July 1, 2021 638 1,636 2,274 Additions - Reductions 19 123 143 Balance as of June 30, 2022 618 1,513 2,131 GOVERNMENTAL ACTIVITIES: Lease Receivable Land Buildings Land Improvements Other Total Lease Receivable Balance as of July 1, 2021 42,285 3,297 1 4,908 50,491 Additions 219 41 260 Reductions 1,022 552 337 1,912 Balance as of June 30, 2022 41,482 2,785 1 4,571 48,839 BUSINESS-TYPE ACTIVITIES: Lease Receivable Land Other Total Lease Receivable Balance as of July 1, 2021 638 1,636 2,274 Additions - Reductions 24 112 136 Balance as of June 30, 2022 614 1,524 2,138 Short-term debt The City did not issue short-term debt for the year ended June 30, 2022. X. Long-term debt A. General obligation bonds (GO) 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 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. 57 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) B. Revenue bonds 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 $54,545 in bonds outstanding is secured by the City’s pledge of a 0.50% transportation excise tax approved by voters on November 6, 2001. The debt service payments are also secured by the same excise tax. The total remaining principal and interest to be paid to a trustee under a trust agreement is $67,504. The current year revenues of $42,654 collected in the transportation special revenue fund paid the current year principal and interest amounts of $4,110 and $2,589 respectively. For transportation revenue bonds, the pledged revenue coverage covenants in the purchase agreements require the transportation excise taxes received must be equal to or at least one and one-half times the total interest and principal payment required in the current fiscal year. The Excise Tax Revenue Refunding bonds are special obligations of the City and are not a general obligation of the City. Under a purchase agreement the City makes monthly payments to a trustee. The payments are secured by a senior claim and pledge by the City of all of the City’s unrestricted excise tax revenues which comprise of all excise tax, transaction privilege, franchise and income tax which it collects or is apportioned by the State or political subdivision of the State. The $175,450 in bonds outstanding was issued to refund senior and subordinate excise tax revenue bonds issued by the MPC. The total principal and interest remaining on the bonds to be paid is $225,376. The current year principal and interest amount of $11,690 and $8,968 were funded with a transfer from the General fund. The $167,760 in water and sewer revenue bonds/obligations outstanding has been issued for the construction, acquisition, and equipping of water and sewer facilities and related systems and infrastructure. These 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 and interest income less such necessary expenses of operation, maintenance, and repair of the system excluding depreciation, amortization and debt service. The total principal and interest remaining to be paid is $219,561. The current year principal and interest on the bonds were $24,723 and net revenues of the system were $54,916. For water and sewer revenue bond senior obligations, the pledged revenue coverage covenants in the purchase agreements require the revenues received must be equal to or at least one hundred twenty percent of the combined debt service on all outstanding senior obligations. For water and sewer revenue bond subordinate obligations, the pledged revenue coverage covenants in the purchase agreements require the revenues received must be equal to or at least one hundred twenty percent of the combined debt service on all outstanding senior obligations and subordinate obligations. 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 purchase agreement with MPC, whereby, the City purchased 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 an 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 an agreement with the MPC to issue bonds to refund outstanding 2006B bonds. In February 2012, the City entered into an agreement with the MPC to issue bonds to partially refund outstanding maturities of the bond series 2003, 2004, and 2006. In December 2012, the City entered into an agreement with the MPC to issue bonds to partially refund outstanding maturities of the 58 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) bond series 2003 and 2004, and to fully refund outstanding maturities of the Western Loop 101 Public Facilities Corporation bond series 2008. In March 2015, senior excise tax revenue bonds were issued to refund MPC bonds series 2002B, 2003B, 2006A, and series 2012D, respectively. In April 2016, senior excise tax revenue bonds were issued to refund MPC bond series 2003D in full as well as several maturities of the MPC bond series 2008A. In October 2017, subordinate excise tax revenue bonds were issued to partially refund MPC bond series 2012C. 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 from the municipal office complex and arena, and 2) all excise, transaction, privilege and franchise taxes which the City currently collects, may collect or are allocated to the City by any other governmental unit or municipal corporation, except the City’s 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 nor will the purchase price be payable from the proceeds of ad valorem taxes. The total principal and interest remaining to be paid is $275,461. Excise tax revenues pledged for repayment of MPC was $235,926. The current year principal and interest paid was $14,476. For senior liens, the pledged revenue coverage covenants in the lien agreements require the unrestricted excise taxes received must be equal to or at least three times the senior excise tax obligation payment required in any current fiscal year. The requirement for subordinate liens is the unrestricted excise taxes received must be equal to at least two times the combined total payment on senior excise tax obligations and subordinate lien excise tax obligations in any current fiscal year. D. Certificates of Participation (COP) bonds The certificates of participation bonds are payable exclusively from annually budgeted and appropriated funds and will not be a general obligation or indebtedness of the City. In July 2021, the City issued certificates of participation in an agreement to fund a significant portion of the City’s pension plans unfunded liabilities in the Public Safety Personnel Retirement System. Although no specific revenue sources will be pledged to or secure the certificates, it is anticipated monies from the City’s general fund will be used for making payments. The total interest remaining to be paid is $310,478. The current year interest on the bonds was $5,474. E. Leases as Lessee The City, as a lessee, has entered into a 44-month lease agreement for the use of police department property. An initial lease liability was recorded in the amount of $364. As of June 30, 2022, the value of the lease liability is $261. The lease has an interest rate of 0.8927%. The value of the right to use asset as of June 30, 2022 was $364 with accumulated amortization of $99. The lease liability does not include any variable payments or sublease agreements. 59 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) F. 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, 2022: June 30, 2021 General obligation (GO) bonds General obligation (GO) bondsDirect borrowing Revenue bonds: Excise Tax Revenue bonds Transportation bonds Transportation bonds-Direct borrowing M unicipal Property Corporation Certificates of Participation (COP) Total bonds payable $ Other long-term obligations: Lease obligations Net pensions and OPEB liabilities Compensated absences Claims and judgments Unamortized premium on debt issuance Discount on debt issuance Developer payable obligations Total other long-term obligations Total $ 75,805 Increases Decreases $ $ 31,375 (42,190) June 30, 2022 $ 64,990 Amounts Due Within One Year $ 14,730 22,425 32,225 (3,235) 51,415 3,140 187,140 51,440 - (11,690) (4,095) 175,450 47,345 13,570 4,295 7,215 184,850 528,875 252,800 316,400 (15) (5,295) (66,520) 7,200 179,555 252,800 778,755 15 4,255 40,005 393,943 31,484 17,595 364 10,231 40,510 (103) (82,503) (14,306) (35,174) 261 311,440 27,409 22,931 104 13,864 22,931 46,159 5,316 (6,787) 44,688 4,096 (426) 4,893 493,648 267 56,688 26 (138,847) (400) 5,160 411,489 40,995 1,022,523 $ 373,088 $ (205,367) $ 1,190,244 $ 81,000 General, transportation, other special revenue and other non-major funds typically have been used to liquidate compensated absences in prior years, since most employees engaged in governmental activities are paid from those funds. Of the $1,190,244 in the total liabilities, $575,664 is related to net position for the City’s net investment in capital assets. Other obligations not included in the calculation of net position for the City’s net investment in capital assets are pension and OPEB obligations, compensated absences, claims and judgments and Certificates of Participation (COP). No governmental funds cash has been used to fund the City of Glendale post-employment healthcare plan post-employment benefit obligation (OPEB). The remainder of this page left blank intentionally. 60 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) The following is a summary of changes in long-term liabilities reported in the business-type activities financial statements for the year ended June 30, 2022: June 30, 2021 Landfill GO bonds Water and sewer revenue/obligation bonds Total bonds p ay able $ Other long-term obligations: Estimated closure and p ost-closure costs Unamortized p remium on debt issuance Net p ensions and OPEB liabilities Comp ensated absences Housing noncurrent liabilities Total other long-term obligations Total $ Additions 167,950 167,950 $ 8,915 60,675 69,590 Reductions $ (60,865) (60,865) June 30, 2022 Amounts Due Within One Year $ $ 8,915 167,760 176,675 270 18,595 18,865 16,817 1,379 - 18,196 - 29,284 36,002 4,356 24 86,483 12,404 130 1,876 (8,382) (7,750) (2,076) (2) (18,210) 33,306 28,382 4,156 22 84,062 3,429 2,138 5,567 (79,075) $ 260,737 254,433 15,789 $ 85,379 $ $ 24,432 Of the $260,737 in total liabilities, $209,981 (including matured bonds payable) is included in the calculation of net position for the City’s net investment in capital assets. Other obligations not included in the calculation of net position for the City’s net investment in capital assets are estimated landfill closure and post-closure costs, pension and OPEB liabilities, compensated absences, and housing noncurrent liabilities. G. Current and 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 issues 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. According, 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 actually be retired until the call dates have come due or maturity if they are not callable issues. Issue Refunded General Obligation Bonds Series 2016A Date Refunded October 13, 2021 Remaining Balance 16,705 General Obligation Bonds Series 2018 October 13, 2021 7,225 Water and Sewer Revenue Refunding Bond Series 2012 April 6, 2022 43,345 The remainder of this page left blank intentionally. 61 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) H. Bonds payable Bonds payable on June 30, 2022, are comprised of the following: Classified in governmental activities on the government-wide financial statements: Purpose Issued Fiscal Year Ending June 30 Interest Rate Year Series M atures GO bonds payable from secondary assessed property taxes Various Tax-Exempt(A), Taxable(B) 1.54-4.00 2016 Various Taxable 2019 3.00-5.00 2019 Various Tax-Exempt 2021 3.00-5.00 2021 Various Tax-Exempt 2022 5.00 2022 Total Amount of Original Issue Bonds Outstanding June 30, 2022 2036 2038 2041 2042 27,285 15,385 13,700 31,375 7,345 14,390 11,880 31,375 64,990 GO bonds payable from secondary assessed property taxes-direct borrowing Refunding Taxable BAB 2017 3.16 2018 2030 Refunding Taxable 2021 2.21 2022 2037 Total 26,555 32,225 20,240 31,175 51,415 Revenue bonds payable from the 0.5% transportation sales tax Refunding Tax-Exempt Excise Tax Rev 2.00-5.00 2015 Total 2032 55,635 47,345 47,345 Revenue bonds payable from the 0.5% transportation sales tax-direct borrowing Refunding Tax-Exempt Excise Tax Rev 2.62 2017 2032 Total 19,330 7,200 7,200 2031 2033 2033 2032 100,430 13,700 33,830 65,385 76,460 13,700 27,490 57,800 175,450 M unicipal Property Corporation payable from general fund payments M PC Taxable excise tax 2003B 1.46-5.58 2003 M PC Taxable excise tax 2008B 5.45-6.16 2008 M PC Tax-Exempt refunding 2012B 5.00 2013 M PC Tax-Exempt refunding 2012C 5.00 2013 Total 2033 2033 2033 2038 105,260 52,780 39,620 183,405 1,480 35,745 34,085 108,245 179,555 Certificates of Participation payable from general fund payments COPs Taxable 2021 0.897-2.942 2022 Total 2037 252,800 252,800 252,800 Excise Tax bonds payable from general fund sales tax Refunding Tax-Exempt 2015A 5.00 Refunding Taxable 2015B 3.93-4.03 Refunding Tax-Exempt 2016 3.00-5.00 Sub Refunding Tax-Exempt 2017 5.00 Total 2015 2015 2016 2018 Total bonds payable recorded in governmental activities Less current portion Long-term portion of bonds payable recorded in governmental activities 62 $ 778,755 (40,005) 738,750 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Classified in business-type activities on the government-wide financial statements: Purpose Interest Rate G.O. bonds payable from landfill fund Landfill 5.00 Total Issued Fiscal Year Ending June 30 Year Series Matures 2022 2042 Amount of Original Issue Bonds Outstanding June 30, 2022 $ $ Revenue bonds/obligations payable from water and sewer fund Various refunding 2.50-5.00 2015 2028 Various refunding 5.00 2021 2030 Various 5.00 2021 2041 Various 5.00 2022 2042 Refunding 2012 5.00 2022 2028 Total 8,915 121,245 20,250 22,720 20,665 40,010 68,865 20,250 22,720 20,665 35,260 167,760 Total bonds payable recorded in business-type activities Less current portion Long-term portion of bonds payable recorded in business-type activities I. 8,915 8,915 $ 176,675 (18,865) 157,810 Legal debt margin The Arizona Constitution provides that the general obligation bonded indebtedness for a city for general municipal purposes may not exceed 6% of the limited 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 limited 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, 2022, is as follows: 6% Capacity to incur bonded debt Less: Bonded debt applicable to limit Unused bonded debt capacity $ $ 157,243 (19,450) 137,793 20% $ $ 524,143 (116,240) 407,903 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. The remainder of this page left blank intentionally. 63 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) J. Bonds authorized, issued and unissued Bonds authorized but not fully issued as of June 30, 2022, are shown below: GO bonds Authorized Amount Issued through June 30, 2022 Authorized but Unissued Voter authorized October 20, 1981 Operations center $ $ $ 6,750 Voter authorized March 10, 1987 Library 550 6,200 9,698 8,225 1,473 Cultural facility (1) Economic development 18,215 50,500 5,581 28,453 12,634 22,047 Governmental facilities (1) 40,910 20,328 20,582 17,000 15,398 53,700 12,375 4,420 4,625 15,398 49,280 6,935 185 6,750 20,554 16,155 102,638 79,065 437,518 12,878 10,115 16,054 78,741 197,905 7,676 6,040 86,584 324 239,613 Voter authorized November 2, 1999 Landfill development Library Open spaces (1) Transit(1) Voter authorized May 15, 2007 Flood control Parks and recreation Public safety Streets and parking Total GO bonds $ $ $ Revenue bonds Voter authorized November 2, 1999 Water and sewer(1) Total revenue bonds $ 10,000 10,000 $ - $ 10,000 10,000 Total bonds $ 447,518 $ 197,905 $ 249,613 (1) Certain general obligation bonds or revenue bonds can be issued as general obligation bonds, revenue bonds or a combination thereof. 64 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) K. Other debt (developer, notes, long-term) Classified in the governmental activities in the government-wide financial statements: Developer Payable Obligation - On December 1, 2005, the City entered into a development and ground lease agreement with Cabela’s whereby Cabela’s has the option to purchase the City owned property 90 days after the expiration of the 20-year ground lease (option date). In addition, the City entered into a site improvement management agreement on July 1, 2006, whereby Cabela’s accrues a management compensation amount for their actual costs of operation, maintenance, and repair of site improvements. The management compensation amount accrues annually with interest. At the option date Cabela’s can purchase the property at Fair Market Value and receive a credit against the purchase price for the accrued management compensation amount. The remainder of this page left blank intentionally. 65 $ 5,160 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) L. Future year debt service requirements Fiscal Year Ending Transportation TransBonds portation Direct Bonds Borrowing 6,490 6,496 6,495 6,493 6,494 6,493 6,493 6,491 6,494 G.O. Certificates Bonds of Direct Borrowing Participation MPC Bonds Excise Tax Bonds G.O. Bonds 13,150 13,134 13,096 13,092 13,090 13,074 13,836 13,799 13,792 14,915 27,821 22,533 22,533 22,532 22,532 22,532 275,461 21,986 22,000 22,034 22,049 22,041 22,059 21,300 21,338 21,342 20,224 9,003 225,376 17,657 6,054 5,230 5,232 5,237 3,630 3,627 3,624 3,631 3,647 3,707 3,698 3,709 3,733 3,730 3,739 2,468 2,472 2,468 1,659 88,952 60,760 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total 58,439 204 203 208 207 207 206 206 205 205 7,214 9,065 Less interest 11,094 1,865 95,906 49,926 23,962 Principal $ 47,345 $ 7,200 $ 179,555 $ 175,450 $ 64,990 4,467 4,457 4,469 4,473 4,468 6,076 6,261 6,072 3,164 3,168 3,170 3,177 3,166 3,165 1,007 5,662 18,727 19,386 19,988 20,551 21,062 21,523 21,944 22,330 22,671 22,971 23,237 23,463 23,641 23,322 - Landfill 106 105 53 Total 310,478 716 717 713 713 713 717 714 716 717 717 716 714 716 717 717 715 717 712 717 714 14,308 26,090 26,090 26,085 26,090 23,631 20,853 10,112 10,109 4,412 4,411 4,408 4,409 4,408 4,410 4,409 4,410 4,413 4,411 4,410 1,990 219,561 264 96,528 97,983 97,769 98,337 96,432 94,170 84,072 84,298 76,087 76,967 71,796 57,768 57,995 58,198 55,717 31,396 7,598 7,595 7,595 4,363 1,262,664 9,345 57,678 5,393 51,801 3 306,973 $ 51,415 $ 252,800 $ 8,915 $ 167,760 261 $ 955,691 The remainder of this page left blank intentionally. 66 Water and Sewer Revenue Bonds/ Lease Obligations Obligations - $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) The following table discloses the debt service requirements as of June 30, 2022, segregating principal and interest, for the next five years and in five-year increments thereafter. Fiscal Year 2023 2024 2025 2026 2027 2028-2032 2033-2037 2038-2042 Total Principal 58,974 62,944 64,983 67,915 68,815 318,275 260,510 53,275 $ 955,691 Interest 37,554 35,039 32,786 30,422 27,617 97,319 40,964 5,272 $ 306,973 $ Total 96,528 97,983 97,769 98,337 96,432 415,594 301,474 58,547 1,262,664 M. New bonds On July 13, 2021, the City issued $252,800 in Certificates of Participation bonds to fund a significant portion of the City’s pension plans unfunded actuarial liabilities in the Public Safety Personnel Retirement System. The 2021 agreement matures on various dates starting 2024 to 2037 with interest rates of 0.897%-2.942%. The bonds are not a general obligation of the City and principal and interest on the bonds are payable exclusively from annual budgeted an appropriated funds. Although no specific revenue sources will be pledged to or secure the certificate, it is anticipated monies from the City’s general fund will be used for making the payments. On October 13, 2021, the City issued $32,225 in General Obligation refunding bonds with a stated rate of 2.21% and a true interest cost of 2.21% to refund $16,705 of the 2028-2036 General Obligation A bonds issued in 2016 and $11,020 of the 2022-2037 General Obligation bonds issued in 2018. The City will reduce its total debt service payments for the next 15 years by approximately $155 and obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $27. The bonds are a general obligation of the City and pledged by the full faith and credit of the City. They are repaid through the levying of property taxes by the City. On March 31, 2022, the City issued $40,290 in General Obligation bonds to fund streets and parking, public safety, flood control, open spaces, parks, cultural facilities, library facilities, government facilities, and landfill facilities, and construction, reconstruction, or other improvements. The 2022 bonds mature on various dates starting 2023 to 2042 with an interest rate of 5.00%. The bonds are a direct general obligation of the City and pledged by the full faith and credit of the City. They are repaid through the levying of property taxes by the City. On April 6, 2022, the City issued $20,665 in Senior Lien Water and Sewer revenue bonds to fund System acquisition, construction, and improvements. The 2022 bonds mature on various dates starting 2028 to 2042 with a fixed interest rate of 5.00%. The bonds are not a general obligation of the City but are a special revenue obligation of the City and are pledged and secured solely by the net revenues of the water and sewer system. On April 6, 2022, the City issued $40,010 in Senior Lien Water and Sewer revenue refunding bonds with a stated rate of 5% and a true interest cost of 1.58% to refund $43,345 of the 2022-2028 Water and Sewer revenue bonds issued in 2012. The City will reduce its total debt service payments over the next 6 years by approximately $4,633 and obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $4,354. The bonds are not a general obligation of the City but are a special revenue obligation of the City and are pledged and secured solely by the new revenues of the water and sewer system. 67 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) XI. 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, 2022, calculated below, represents the cumulative amount reported to date based on the use of estimated capacity of the landfill. North Cell South Cell 29,219 - 24,607 23,019 94% Capacity (cubic yards) Capacity used to date Percentage of capacity used Total closure and post-closure costs in present dollars: as of June 30, 2022 as of June 30, 2021 $ $ 20,713 19,612 $ $ 19,452 18,417 Closure and post-closure care costs: Amount remaining to be recognized as of June 30, 2022 $ 20,713 $ 1,256 Liability recognized as of June 30, 2022 $ - $ 18,196 These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year 2021-22. 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 39 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. The remainder of this page left blank intentionally. 68 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) XII. Inter-fund transactions Inter-fund balances at June 30, 2022, consisted of the following: A. Due to/due from Due to general fund from: Major governmental funds Other Special Revenue Fund Other non-major governmental funds Community Development Block Grants Fund Non-Major Proprietary Funds Solid Waste Housing Total due to general fund $ 586 320 $ 1,564 9 2,479 The inter-fund balances at June 30, 2022, include short-term loans to cover temporary cash deficits in various funds. This occasionally occurs prior to bond sales or grant reimbursements. All inter-fund balances outstanding at June 30, 2022, are expected to be repaid within one year. 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 inter-fund transfers are all classified as transfers and are included in the results of operations of both governmental and proprietary funds. The remainder of this page left blank intentionally. 69 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) B. Inter-fund transfers Inter-fund transfers for the year ended June 30, 2022, consisted of the following: Transfers to municipal property corporation debt service fund from: General fund 14,501 Total transfers to municipal property corporation debt service fund 14,501 Transfers to other special revenue fund from: General fund 2,388 Street construction fund 136 Other Construction Fund 11 Fire and police construction fund 7 Parks Bond Construction 33 Water and sewer 191 Landfill 77 Total transfers to non-major special revenue fund 2,843 Transfers to non-major debt service funds from: General fund 26,339 Transportation special revenue fund 6,709 Total transfers to non-major debt service funds 33,048 Transfers to non-major capital projects fund from: Highway user gas tax fund 5,422 Transportation special revenue fund 3,046 Total transfers to non-major capital projects fund 8,468 Transfers to water and sewer proprietary fund from: General fund 438 Total transfers to water and sewer proprietary fund 438 Transfers to landfill proprietary fund from: General fund 1,072 Total transfers to landfill proprietary fund 1,072 Transfers to non-major proprietary funds from: General fund 2,204 Total transfers to other non-major proprietary fund 2,204 Grand total all transfers $ 70 62,574 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) XIII. 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 budgeted in the new fiscal year. At June 30, 2022, the City intended to honor $37,695 of outstanding encumbrances in the new fiscal year. Fund Major: General Transportation Sales Tax Other Special Revenue Water and Sewer Landfill Non-Major: Highway Users Gax Tax Non-major other special revenue Non-major capital Solid Waste Debt Service Internal Service Total XIV. $ $ 6,213 2,091 1,435 18,739 1,205 366 87 6,901 24 1 633 37,695 Equity in joint ventures A. Sub-Regional Operating Group (SROG) 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 the plant and related transportation facilities based on ownership. The latest available audited financial information on the joint venture is as of and for the fiscal year ended June 30, 2021. The City accounts for its approximate 6.4% investment using the equity method in the water and sewer fund. For the year ended June 30, 2022, the City recognized a loss in the joint venture of $1,404. 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. The remainder of this page left blank intentionally. 71 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) A summary of the audited financial information on the joint venture as of and for the fiscal year ended June 30, 2021, is as follows: Assets Current assets Capital assets, net of accumulated depreciation Total assets Liabilities Net position $ $ Total revenues Total expenses Decrease in net position $ $ 74,389 597,596 671,985 57,656 614,329 72,133 (90,766) (18,633) 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. B. Regional Wireless Cooperative (RWC) The City currently participates with twenty Arizona cities and districts in the Regional Wireless Cooperative agreement for the construction, operation and maintenance of a regional communications network, a joint venture. The City of Phoenix is both the Network and the Administrative Managing Member. As the Network Managing Member, Phoenix operates and maintains the network. As the Administrative Managing Member, Phoenix is responsible for accounting, budgeting, procurement and contracting for the RWC. The City has an ongoing financial responsibility as a result of the agreement to participate in the cost to construct, operate and maintain the network. The city’s share of costs is determined based on the proportionate number of subscriber units in use at the time of assessment. The latest available audited financial information on the joint venture is as of and for the fiscal year ended June 30, 2021. The equity interest for the City at June 30, 2021, was $2,580. The City accounts for its approximate 4% investment using the equity method in the Public Safety fund. For the year ended June 30, 2022, the City recognized a loss in the joint venture of $246. The remainder of this page left blank intentionally. 72 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) A summary of the audited financial information on the joint venture as of and for the fiscal year ended June 30, 2021, is as follows: Assets Current assets Capital assets, net of accumulated depreciation Total assets Liabilities and Deferred Inflows of Resources Net position Total revenues Total expenses Decrease in net position $ $ $ $ 4,734 62,144 66,878 2,692 64,186 12,349 (16,812) (4,463) Copies of separate financial statements of the joint venture can be obtained from RWC Director’s Office, 200 W. Washington Street, 14th Floor, Phoenix, Arizona 85003 XV. 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. XVI. Governmental fund balance components and fund type definitions The City has a formally adopted minimum fund balance policy for the general fund. This policy was adopted though the annual budget process. The policy states that the general fund should maintain a minimum total unassigned fund balance of 25% of the projected annual ongoing revenues. The City’s general fund, unassigned fund balance at June 30, 2022 is $54,905. Per the City’s adopted financial policies, 10% of the general fund operating revenue which totals $32,455 has been earmarked as the Budget Stabilization Reserve and $22,450 has been earmarked as the Operating Reserve. Consistent with the requirements of GASB Statement No. 54, formal Council action was not taken prior to June 30, 2022 to commit these funds; therefore, the funds are reported as unassigned. 73 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) General Nonspendable 136 Inventories and prepaid items $ Lease receivable, net 258 Cemetery perpetual care Total Nonspendable 394 Restricted Public transit U.S. drug enforcement Debt service Court security HOME program Highway user revenue Police activities 12,932 Fire activities 6,863 ARPA grant Other grants Development impact fees Streets construction Fire and police construction Park bond construction Library construction Economic development Open space/trails Cultural and historical projects Government facilities Neighborhood stabilization Flood control construction Total restricted 19,795 Committed Artwork Pool/park repair Total committed Assigned Equipment replacement 2,675 General government capital projects 80,061 Fire Apparatus 11,765 Pension reserve 13,333 Bed tax/tourism 2,935 Mega events 3,000 Public safety training facility TPT revenue stabilization 5,000 Inflation risk 5,000 Total assigned 123,769 Unassigned fund balance 54,905 $ 198,863 Transportation $ 157 157 Other Special Revenue Municipal Property Other Non-Major Total Governmental Corporation Governmental Debt Service Funds Funds $ $ 44 44 - $ 6,131 6,131 $ 293 302 6,131 6,726 93,356 93,356 1,732 66 402 2,200 9,043 9,043 3,251 572 13,694 6 43,472 14,286 6,470 3,395 229 2,943 1,210 991 1,923 888 2,070 95,400 93,356 1,732 12,294 66 572 13,694 12,932 6,863 408 43,472 14,286 6,470 3,395 229 2,943 1,210 991 1,923 888 2,070 219,794 - 1,900 242 2,142 - - 1,900 242 2,142 $ 93,513 1,705 1,705 $ 6,091 $ 9,043 101,531 2,675 74 $ $ 80,061 11,765 13,333 2,935 3,000 1,705 5,000 5,000 125,474 54,905 409,041 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Enterprise Fund Type Water and sewer fund Restricted for debt service $ 17,520 Restricted for revenue bond retirement/replacement and extension Two percent of net water revenues must be, by bond ordinance, 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 capital assets of the water and sewer fund. 11,481 Restricted for OPEB benefits 629 Restricted for other purposes 15,067 Total restricted for water and sewer 44,697 Landfill fund Restricted for OPEB benefits 107 Total restricted for landfill 107 Other enterprise funds Restricted for OPEB benefits 247 Total restricted for other enteprise funds 247 Total restricted for enterprise fund types XVII. 45,051 $ Pensions and other postemployment benefits The City contributes to the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) for police officers and fire fighters. The plans are component units of the State of Arizona. At June 30, 2022, the City reported the following aggregate amounts related to pensions and other postemployment benefits (OPEB) for all plans to which it contributes: Statement of net position and statement of activities OPEB asset Net pension and OPEB liabilities Deferred outflows of resources to pensions and OPEB Governmental activities $ 6,321 311,440 Business-type activities $ 983 28,382 308,389 7,814 316,203 73,106 9,702 82,808 24,475 1,644 26,119 Deferred inflows of resources related to pensions and OPEB Pension and OPEB expense 75 $ Total 7,304 339,822 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) A. Arizona State Retirement System (ASRS) Plan Description - City employees not covered by the other pension plans described on the following pages participate in the Arizona State Retirement System (ASRS). The ASRS administers a costsharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on its Web site at www.azasrs.gov. Benefits Provided - The ASRS provides retirement, disability, health insurance premium supplemental benefits, and survivor benefits. State statute establishes benefits terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and total credited service as follows: Years of service and age required to receive benefit Retirement initial membership date: Before July 1, 2011 On or after July 1, 2011 Sum of years, age equals 80 30 years, age 55 10 years, age 62 25 years, age 60 5 years, age 50* 10 years, age 62 any years, age 65 5 years, age 50* any years, age 65 Final average salary is based on Highest 36 consecutive months of last 120 months Highest 60 consecutive months of last 120 months Benefit percent per year of service 2.1% to 2.3% 2.1% to 2.3% *With actuarially reduced benefits Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $100 per month to $260 per month depending on the age of the member and dependents. For members with 5 to 9 years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service. Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with long-term disability commencement dates after June 30, 1999, are limited to 30 years of service or the service on record as of the effective disability date if their service is greater than 30 years. 76 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Contributions - In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the year ended June 30, 2022, active ASRS members were required by statute to contribute at the actuarially determined rate of 12.41 percent (12.22 percent for retirement and 0.19 percent for long-term disability) of the members’ annual covered payroll. The City was required by statute to contribute at the actuarially determined rate of 12.41 percent (12.01 percent for retirement, 0.21 percent for health insurance premium benefit, and 0.19 percent for long-term disability) of the active members’ annual covered payroll. In addition, the City was required by statute to contribute at the actuarially determined rate of 10.22 percent (10.13 percent for retirement, and 0.09 percent for long-term disability) of annual covered payroll of retired members who worked for the City in positions that would typically be filled by an employee who contributes to the ASRS. The City’s contributions to the pension, health insurance premium benefit, and long-term disability plans for the year ended June 30, 2022, were $9,802, $171, and $155, respectively. During fiscal year 2022, the City paid for ASRS pension and OPEB contributions as follows: 64% from the governmental funds and 36% from the enterprise funds. Liability – At June 30, 2022, the City reported the following asset and liabilities for its proportionate share of the ASRS’ net pension/OPEB asset or liability: Net pens ion/OPEB (as s et) liability ASRS Pens ion Health ins urance premium benefit Long-term dis ability 89,758 (3,337) 141 The net asset and net liabilities were measured as of June 30, 2021. The total liability used to calculate the net asset or net liability was determined using update procedures to roll forward the total liability from an actuarial valuation as of June 30, 2020, to the measurement date of June 30, 2021. The City’s proportionate share of the net asset or net liability was based on the City’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2021. The City’s proportions measured as of June 30, 2021, and the change from its proportions measured as of June 30, 2020 were: Proportion June 30, 2021 ASRS Pension Health insurance premium benefit Long-term disability Increase from June 30, 2020 0.68311% 0.68500% 0.68350% 0.01792 0.01396 0.01546 Expense - For the year ended June 30, 2022, the City recognized the following pension and OPEB expense: ASRS Pens ion/OPEB expens e Pens ion Health ins urance premium benefit Long-term dis ability $ 77 8,026 (377) 109 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Deferred outflows/inflows of resources - At June 30, 2022 the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions City contributions subsequent to the measurement date Total Pension Deferred Deferred outflows inflows of resources of resources Health insurance premium benefit Deferred Deferred outflows inflows of resources of resources Long-term disability Deferred Deferred outflows inflows of resources of resources $ $ $ $ 1,368 $ - - $ 1,157 41 $ 11,683 - 165 135 45 178 - 28,438 - 1,238 - 98 1,811 250 - 6 13 8 9,802 24,664 28,688 $ $ 171 336 $ 2,536 $ 155 254 $ The amounts reported as deferred outflows of resources related to ASRS pensions and OPEB resulting from city contributions subsequent to the measurement date will be recognized as an increase of the net asset or a reduction of the net liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions and OPEB will be recognized as expenses as follows: Year Ended June 30, 2023 2024 2025 2026 2027 Thereafter 11 Health insurance premium benefit Pension 1,063 1,181 (6,269) (9,801) - (555) (533) (584) (645) (54) - The remainder of this page left blank intentionally. 78 Long-term disability (26) (25) (28) (43) (17) (57) 295 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Actuarial Assumptions –The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates Recovery rates Healthcare cost trend rate June 30, 2020 June 30, 2021 Entry age normal 7.0% 2.9-8.4% for pensions/not applicable for OPEB 2.3% Included for pensions/not applicable for OPEB 2017 SRA Scale U-MP for pensions and health insurance premium benefit 2012 GLDT for long-term disability Not applicable Actuarial assumptions used in the June 30, 2020, valuation were based on results of an actuarial experience study for the five-year period ending June 30, 2016. The long-term expected rate of return on ASRS plan investments was determined to be 7.0% using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: As s et Clas s Equity Real Es tate Fixed Income-Credit Fixed Income-Int Rate Sens itive Total Target Allocation 50% 20% 20% 10% 100% Long-term expected geometric real rate of return 4.90% 5.70% 5.20% 0.70% Discount Rate - At June 30, 2021, the discount rate used to measure the ASRS total pension/OPEB liability was 7.0 percent. The rate has been lowered in the roll forward from 7.5%, which was used for the actuarial assumptions at the valuation date. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statutes. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension/OPEB liability. The remainder of this page left blank intentionally. 79 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Sensitivity of the City’s proportionate share of the ASRS net pension/OPEB (asset) liability to changes in the discount rate - The following table presents the City’s proportionate share of the net pension/OPEB (asset) liability calculated using the discount rate of 7.0 percent, as well as what the City’s proportionate share of the net pension/OPEB (asset) liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.0 percent) or 1 percentage point higher (8.0 percent) than the current rate. ASRS City's proportionate share of the Net pension liability Net insurance premium benefit liability (asset) Net long-term disability liability 1% Decrease (6.0%) Current Discount Rate (7.0%) 1% Increase (8.0%) $ $ $ 141,181 (2,210) 184 89,758 (3,337) 141 46,885 (4,296) 100 Plan Fiduciary Net Position - Detailed information about the plan’s fiduciary net position is available in the separately issued ASRS financial report. B. Public Safety Personnel Retirement System (PSPRS) Plan Description - City public safety personnel who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS) or employees who became members on or after July 1, 2017, may participate in the Public Safety Personnel Defined Contribution Retirement Plan (PSPDCRP). The PSPRS administers an agent and cost sharing multiple-employer defined benefit pension plans and an agent and cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plans. A nine-member board known as the Board of Trustees and the participating local boards govern the PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. City public safety personnel who were PSPRS members before July 1, 2017, participate in the agent plans, and those who became PSPRS members on or after July 1, 2017, participate in the PSPRS Tier 3 plans, which are not further disclosed because of their relative insignificance to the City’s financial statements. The PSPRS issues a publicly available financial report that includes their financial statements and required supplementary information. The reports are available on the PSPRS website at www.psprs.com. The remainder of this page left blank intentionally. 80 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Benefits Provided - The PSPRS provides retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Benefit percentage Normal Retirement Before January 1, 2012 20 years of service, any age 15 years of service, age 62 Initial Membership Date On or after January 1, 2012 and before July 1, 2017 25 years of service or 15 years of credited service, and age 52.5 On or after July 1, 2017 15 years of credited service, age 52.5* 15 or more years of service, age 55 Highest 36 consecutive months of last 20 years Highest 60 consecutive months of last 20 years Highest 60 consecutive months of last 15 years 50% less 2.0% for each year of credited service less than 20 years OR plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 1.5% to 2.5% per year of credited service, not to exceed 80% Accidental Disability Retirement 50% or normal retirement, whichever is greater Catastrophic Disability Retirement 90% for the first 60 months then reduced to either 62.5% or normal retirement, whichever is greater Ordinary Disability Retirement Normal retirement calculated with actual years of credited service or 20 years of credited service, whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by 20 Survivor Benefit Retired Members 80% to 100% of retired member's pension benefit Active Members 80% to 100% of accidental disability retirement benefit or 100% of average monthly compensation if death was the result of injuries received on the job *With actuarially reduced benefits Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. PSPRS also provides temporary disability benefits of 50 percent of the member’s compensation for up to 12 months. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. Benefits range from $100 per month to $260 per month depending on the age of the member and dependents. The remainder of this page left blank intentionally. 81 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Employees Covered by Benefit Terms - At June 30, 2022, the following employees were covered by the agent plans’ benefit terms: PSPRS PSPRS Police Firefighters Pension Health Pension Inactive employees or beneficiaries currently receiving benefits Health 250 250 119 119 Inactive employees entitled to but not yet receiving benefits 95 60 42 36 Active employees 339 339 216 216 Total 684 649 377 371 Contributions- State statutes establish the pension contribution requirements for active PSPRS employees. In accordance with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS pension and health insurance premium benefits. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. Contribution rates for the year ended June 30, 2022, are indicated below. Rates are a percentage of active members’ annual covered payroll. PSPRS Police PSPRS Firefighters Active memberpension 7.65%-9.25% 7.65%-10.71% Active memberhealth insurance premium benefit 0%-0.11% 0%-0.15% City-pension 53.94%-58.53% 49.18%-53.70% City-health insurance premium benefit 0.39%-0.42% 0.0%-0.15% The City’s contributions to the plans for the year ended June 30, 2022, were: PSPRS-Police PSPRS-Fire Pension $ 177,717 87,552 Health insurance premium benefit $ 57 2 During fiscal year 2022, the City paid for PSPRS pension and OPEB contributions 100 percent from the General Fund. Liability - At June 30, 2022, the City reported the following assets and liabilities: PSPRS Police PSPRS Firefighters Net pension (asset) liability $ 166,572 82,861 Net OPEB (asset) liability $ (1,238) (2,729) The net assets and net liabilities were measured as of June 30, 2021, and the total liability used to calculate the net asset or liability was determined by an actuarial valuation as of June 30, 2020. 82 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Actuarial Assumptions - The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial valuation date Actuarial cost method Investment rate of return Wage inflation Price inflation Cost-of-living adjustment Mortality rates Healthcare cost trend rate June 30, 2020 Entry age normal 7.3% 3.5% for pensions/not applicable for OPEB 2.5% for pensions/not applicable for OPEB 1.75% for pensions/not applicable for OPEB Pub-S-2010 tables Not applicable Actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. A new experience study for the period ended June 30, 2020 will be utilized by the ASRS for future actuarial valuations. The long-term expected rate of return on PSPRS plan investments was determined to be 7.3 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-term Target expected geometric Asset class allocation real rate of return Cash - Mellon 1% -0.31% Core bonds 2% 0.42% Other assets (Capital appreciation) 7% 5.43% Diversifying strategies 10% 3.99% International public equity 16% 5.20% Private credit 20% 5.74% Global private equity 20% 7.67% U.S. Public equity 24% 4.08% Total 100% Discount Rate – At June 30, 2021, the discount rate used to measure the PSPRS total pension/OPEB liability was 7.3 percent for Tier 1/2 members. The discount rate used to measure the PSPRS total pension/OPEB liability was 7.0 percent for Tier 3 members. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rate and the member rate. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension/OPEB liability. 83 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Changes in the net pension/OPEB liability - The following tables present changes in the City’s net pension/OPEB liability for the PSPRS pension plans (Police and Firefighters): PSPRS - Police Balance at June 30, 2021 Changes for the year: Service cost Pension Health insurance premium benefit Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 384,413 $ 176,908 $ 207,505 Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 5,965 $ 5,414 $ 551 7,630 - 7,630 154 - 154 Interest on the total liability Differences between expected and actual experience in the measurement of the liability Changes of assumptions or other inputs 28,010 - 28,010 438 - 438 (140) - (140) (742) - (742) - - - - - - Contributions - employer - 21,385 (21,385) - 160 (160) Contributions - employee - 3,044 (3,044) - 11 (11) Net investment income Benefit payments, including refunds of employee contributions - 52,247 (52,247) - 1,474 (1,474) - (16,697) (16,697) - (239) (239) Administrative expenses - (243) 243 - (6) Other changes - - - - - - (40,933) $ 166,572 (389) 5,576 1,400 6,814 (1,789) $ (1,238) Adjustment to beginning of year Net changes Balance as of June 30, 2022 18,803 $ 403,216 59,736 $ 236,644 $ The remainder of this page left blank intentionally. 84 $ 6 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) PSPRS - Firefighters Balance at June 30, 2021 Changes for the year: Service cost Interest on the total liability Differences between expected and actual experience in the measurement of the liability Changes of assumptions or other inputs Contributions - employer Pension Health insurance premium benefit Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) $ 232,667 $ 127,151 $ 105,516 Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) $ 3,127 $ 4,567 $ (1,440) 4,680 - 4,680 83 - 83 16,890 - 16,890 230 - 230 6,137 - 6,137 (346) - (346) - - - - - - - 11,644 (11,644) - 2 (2) Contributions - employee - 2,057 (2,057) - 2 (2) Net investment income - 36,833 (36,833) - 1,257 (1,257) Benefit payments, including refunds of employee contributions (11,957) (11,957) - (108) (108) - Administrative expenses - (172) 172 - (5) 5 Other changes Net changes Balance as of June 30, 2022 15,750 $ 248,417 38,405 $ 165,556 (22,655) $ 82,861 1,148 $ 5,715 (1,289) $ (2,729) (141) $ 2,986 Sensitivity of the City’s net pension/OPEB (asset) liability to changes in the discount rate - The following table presents the City’s net pension/OPEB (assets) liabilities calculated using the discount rate of 7.3 percent for Tier 1/2 members and the discount rate of 7.0 percent for Tier 3 members, as well as what the City’s net pension/OPEB (asset) liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate: PSPRS Police Net pension liability Net OPEB liability (asset) PSPRS Firefighters Net pension liability Net OPEB asset 1% Decrease (6.30%/6.00%) Current discount rate (7.30%/7.00%) 1% Increase (8.30%/8.00%) $ $ $ 222,068 (594) 116,659 (2,386) 166,572 (1,238) 82,861 (2,729) 121,364 (1,780) 55,164 (3,018) Plan fiduciary net position - Detailed information about the plans’ fiduciary net position is available in the separately issued PSPRS financial report. 85 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Expense - For the year ended June 30, 2022, the City recognized the following pension and OPEB expense: PSPRS Police PSPRS Firefighters $ Pension Expense 15,338 7,101 OPEB Expense (Income) $ (318) (318) Deferred outflows/inflows of resources - At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: PSPRS - Police Health insurance premium benefit Pension Deferred Deferred Deferred Deferred outflow inflows outflow inflows of resources of resources of resources of resources Differences between expected and $ 6,469 $ 1,573 $ 23 $ 1,440 actual experience 4,701 43 39 Changes of assumptions or other inputs Net difference between projected and 23,986 625 actual earnings on plan investments City contributions subsequent to the 177,717 57 measurement date Total $ 188,887 $ 25,559 $ 123 $ 2,104 PSPRS - Firefighters Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings on plan investments City contributions subsequent to the measurement date Total Health insurance premium Pension Deferred Deferred outflow inflows of resources of resources benefit Deferred Deferred outflow inflows of resources of resources $ $ $ 86 8,651 $ 3,847 - $ 743 5,716 - 18 56 - 16,637 - 538 87,552 101,919 20,484 2 20 1,337 $ $ $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) The amounts reported as deferred outflows of resources related to pensions and OPEB resulting from City contributions subsequent to the measurement date will be recognized as an increase in the net asset or a reduction of the net liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized as expenses as follows: Year Ending June 30, 2023 2024 2025 2026 2027 Thereafter PSPRS Police Pens ion Health (2,201) (3,426) (3,421) (5,317) (24) - PSPRS Firefighters Pens ion Health (457) (445) (456) (511) (169) - (1,264) (1,328) (2,130) (4,292) 1,363 1,534 (271) (274) (292) (327) (68) (87) C. City of Glendale post-employment healthcare plan 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 through the City’s group health insurance plans. By continuing to provide eligible retirees with access to the City’s healthcare plans based on the same rates it charges to active employees, the City is in effect providing a blended rate to eligible retirees. This blended rate or implicit rate exists because on average retiree healthcare costs are higher than active employee healthcare costs. Retirees can also continue their basic life insurance benefit. Retirees contribute 100% of the premiums. In order for employees to be eligible for this benefit, they need 5 years of service if they were hired prior to July 1, 2005, and 10 years of service if they were hired after July 1, 2005. Effective July 1, 2018 the plan is closed to new retirees. Only those who retired prior to July 1, 2018 are eligible to continue coverage under the City of Glendale OPEB plan. 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. Funding policy and employees covered The City pays for and reports retiree health care 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. The City makes no contribution to the retirees’ premiums other than allowing them to participate through the City’s pooled benefits. For the fiscal year ending June 30, 2022, the number of employees covered by the plan totaled 536. Inactive employees or beneficiaries currently receiving benefits Active employees Total 536 536 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 87 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Healthcare costs were derived from age-neutral premiums, trended to the valuation date and adjusted for the risk characteristics of the group. Medical healthcare trends were projected at 7.0% decreasing down to an ultimate rate of 5.0%. Effective July 1, 2018, the city discontinued benefits for any future retirees. Only those already retired as of June 30, 2018 are eligible for OPEB benefits. In 2022, amounts reflect updated mortality improvement assumptions with Scale MP-2021. For June 30, 2022, the actuarial cost method used is the entry age normal method. A 3.69% pay as you go discount/investment rate was used. 2016 2017 2018 2019 2020 2021 2022 Discount rate 2.85% 3.43% 3.62% 3.13% 2.45% 1.92% 3.69% No actuarial valuation of assets was done as there were no assets at the valuation date and the plan does not have a trust established to hold assets. The amortization method is level percent of payroll amortized over 30 years and the period is open. Measurement Date Actuarial valuation date Inflation Salary Increases Discount rate Mortality rates Pre-retirement June 30, 2022 June 30, 2021 2.4% 3.5% including inflation 3.69% Not applicable since plan is closed to new retirees PubG.H-2010 and PubS.H-2010 heathy annuitant mortality table, generational with projection scale MP-2021 Post-retirement Health care cost trend rates 5.0%-7.00% The remainder of this page left blank intentionally. 88 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Change in total OPEB liability A change in the net OPEB liability was determined by an actuarial valuation as of June 30, 2021. The following table shows the changes in OPEB liability as of June 30, 2022. Total OPEB liability balance at June 30, 2021 $ Changes for the Year Interest Differences betweeen expected and actual experience Changes in assumptions or other inputs Change in benefit terms Benefit payments Net Changes 613 28 (523) 55 317 (123) Total OPEB liability balance at June 30, 2022 $ 490 Multi-year schedule of changes in the net OPEB liability is available in the Required Supplementary Information. Discount rate sensitivity The discount rate of 3.69% was used to measure the total OPEB liability. This discount rate is the Fidelity General Obligation AA 20 Year Yield as of June 30, 2022. The following table presents the City’s net OPEB liability calculated using the discount rate noted above, as well as what the City’s OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate. 1% Decrease Discount rate Total OPEB liability 2.69% 696 $ Current Discount Rate $ 3.69% 490 1% Increase $ 4.69% 710 Healthcare cost trend rate sensitivity The following table presents the total OPEB liability of the City, as well as the City’s total OPEB liability if it were calculated using healthcare cost trend rates that are 1 percentage point lower or higher than current rates. 4.00% Total OPEB Liability $ Healthcare Cos t Trend Rates 5.00% 736 89 $ 490 $ 6.00% 669 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) OPEB expense The following table shows the components of the City’s annual OPEB expense for the year. Interest Difference between Actual and Expected Experience Changes in Assumptions/Inputs Change in Benefit Terms Total FY22 OPEB Expense $ $ 28 (3,162) (308) (3,442) Deferred outflows/inflows of resources At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB as shown in the following table. Differences between expected and actual experience Changes of assumptions or other inputs Total Deferred Outflows of Resources $ $ - Deferred Inflows of Resources $ 821 984 $ 1,805 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending June 30, 2023 2024 2025 2026 2027 Thereafter OPEB Expense $ $ (602) (602) (601) (1,805) The remainder of this page left blank intentionally. 90 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) XVIII. Contingent liabilities and commitments Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the city expects such amounts, if any, to be immaterial. The City is subject to claims and litigation, which arise in the ordinary course of its operations. In the opinion of City management, based on the advice of the City attorney, the resolution of such claims and litigation are believed to either have no material adverse effect on the financial position or the future operations of the City or likelihood of a negative outcome to the City is not determinable. 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. XIX. Tax Abatement The City implemented GASB Statement No. 77. This statement requires government’s that enter into tax abatement agreements to disclose information about the agreements. The tax abatement is listed by program for the year ended June 30, 2022. The remainder of this page left blank intentionally. 91 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) Primary Government City of Glendale, AZ Purpose of Program Economic Development Tax being abated Sales tax reimbursements The City is authorized pursuant to Article 1, Section3 of its Charter and ARS 9-500.05 and 9-500.11, ARS 11-952 to Authority under which the abatement enter into economic development agreements with agreement is entered businesses located in the City and to appropriate and spend public monies for and in conjunction with economic development activities. Criteria to be eligible to receive abatement Mechanism by which the taxes are abated How amount of abatement is determined Types of commitments made by the City other than to reduce taxes The City analyzes the economic development benefits and determines that such public benefits support and justify the economic development incentives provided by each agreement. The public benefits anticipated are indirect economic and non-economic benefits such as increasing City's residents access to goods and services, enhancing public infrastructure, increasing the City's employment base, increasing the City's assessed property valuation and increasing the City's general tax revenues. The City shall make periodic payments based on a percentage of transaction privilege taxes received by the City for a certain length of time as entered into the agreement after occupancy. Based on a percentage of transaction privilege taxes received by the City for a certain length of time as entered into the agreement or capped at a certain dollar amount. City will abandon real property adjacent to the property for right of way , modifying and rezoning use permit of property. Amount of sales tax reimbursements for the fiscal year ended June 30, 2022 $4,356 The remainder of this page left blank intentionally. 92 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2022 (amounts expressed in thousands) XX. Implementation of new accounting principles The City adopted the provisions of GASB Statement No. 87, Leases. This statement is to better meet the informational needs of financial statement users by improving the accounting and financial reporting for leases by governments. This statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The City adopted the requirements of the statement effective July 1, 2021 and has applied the provisions of this standard to the beginning of the period of adoption. XXI. Subsequent Events On February 14, 2023, the City of Glendale terminated the current management agreement and entered into a new ground lease agreement with AEG Management Glendale, LLC for use of the Desert Diamond Arena. The new agreement is a 20-year lease of the Arena Land and the Arena for $10,000 in each of the first three years, then $3,290, and then $1.00 in all remaining years with optional renewals up to three consecutive terms of 10 years each. The City will contribute $10,000 into an arena renovation fund in each of the first two years, and then $5,000 in the third year. The remainder of this page left blank intentionally. 93 This page left blank intentionally. City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ REQUIRED SUPPLEMENTARY INFORMATION (other than MD&A) ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. REQUIRED SUPPLEMENTARY INFORMATION SECTION This part of the City of Glendale’s comprehensive annual financial report presents detailed information for pension plans, OPEB plans, and the general fund budgetary schedule as a context for understanding the information presented in the financial statements and note disclosures. Contents Pages Schedule of the City’s Proportionate Share of the Net Pension/OPEB (Asset)/Liability Cost-Sharing Plans 96-97 Schedule of Changes in the City’s Net Pension/OPEB (Asset)/Liability and Related Ratios Agent Plans 98-105 Schedule of OPEB Liability-City Plan 106-107 Schedule of City Pension/OPEB Contributions 108-111 Notes to Net Pension/OPEB (assets)/liability and contributions 112-113 Budgetary Comparison Schedule-General Fund 114-115 Budgetary Comparison Schedule-Transportation Special Revenue Fund 116 Budgetary Comparison Schedule-Other Special Revenue Funds 117 Notes to Required Supplementary Information 118-119 95 CITY OF GLENDALE, ARIZONA Schedule of the City's proportionate share of the net pension/OPEB (asset)/liability Cost-sharing plans June 30, 2022 (amounts expressed in thousands) Reporting fiscal year (measurement date) ASRS-Pension 2022 2021 2020 (2021) (2020) (2019) City's proportion of the net pension liability 0.683110% 0.665190% 0.670370% City's proportionate share of the net pension liability $ 89,758 $ 115,254 $ 97,547 City's covered payroll $ 69,867 $ 70,766 $ 69,407 City's proportionate share of the net pension liability as a percentage of its covered payroll 128.47% 162.87% 140.54% Plan fiduciary net position as a percentage of the total pension liability 78.58% 69.33% 73.24% ASRS-Health insurance premium benefit City's proportion of the net OPEB (asset) City's proportionate share of the net OPEB (asset) City's covered payroll City's proportionate share of the net OPEB (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability ASRS-Long-term disability City's proportion of the net OPEB liability City's proportionate share of the net OPEB liability City's covered payroll City's proportionate share of the net OPEB liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability Reporting fiscal year (measurement date) 2022 2021 2020 (2021) (2020) (2019) 0.68500% 0.67104% 0.67599% $ (3,337) $ (476) $ (187) $ 69,867 $ 70,766 $ 69,407 2019 (2018) 0.691230% $ 96,402 $ 67,340 143.16% 73.40% 2019 (2018) 0.69452% $ (250) $ 67,340 (0.27%) (0.27%) (0.27%) (0.37%) 130.24% 104.33% 101.62% 102.20% Reporting fiscal year (measurement date) 2022 2021 2020 (2021) (2020) (2019) 0.68350% 0.66804% 0.67335% $ 141 $ 507 $ 439 $ 69,867 $ 70,766 $ 69,407 2019 (2018) 0.69218% $ 361 $ 67,340 0.20% 0.72% 0.63% 0.54% 90.38% 68.01% 72.85% 77.83% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 96 2018 (2017) 0.666400% $ 103,812 $ 64,059 2017 (2016) 0.637060% $ 102,830 $ 58,301 2016 (2015) 0.605260% $ 94,278 $ 54,853 2015 (2014) 0.619749% $ 91,702 $ 54,523 2014 (2013) 0.656524% $ 109,143 $ 57,475 162.06% 176.38% 171.87% 168.19% 189.90% 69.92% 67.06% 68.35% 69.49% N/A 2018 (2017) 0.67058% $ (365) $ 64,059 2017 - 2013 (2016 - 2012) Information Not Available (0.57%) 103.57% 2018 (2017) 0.66674% $ 242 $ 64,059 2017 - 2013 (2016 - 2012) Information Not Available 0.38% 84.44% 97 2013 (2012) Information Not Available CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (assets)/liability and related ratios Agent plans June 30, 2022 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: Pension Total pension liability: Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expenses Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Adjustment to Beginning of year Plan fiduciary net position - ending (b) Reporting fiscal year (measurement date) 2022 2021 2020 (2021) (2020) (2019) $ 7,630 $ 8,002 $ 8,355 28,010 26,063 24,443 - $ $ $ 2019 (2018) $ 8,012 23,135 - (140) - 8,375 - 661 7,193 (4,084) - (16,697) 18,803 384,413 403,216 (14,109) 28,331 356,082 384,413 (13,051) 27,601 328,483 356,084 (14,430) 12,633 315,850 328,483 21,385 3,044 52,247 (16,697) (243) 59,736 176,908 236,644 $ $ $ 17,737 3,159 2,301 (14,109) (188) 55 8,955 167,953 176,908 $ $ $ 16,942 2,880 8,990 (13,051) (157) (10) 15,594 152,491 (130) 167,955 $ $ $ 10,982 3,351 9,921 (14,430) (152) 192 9,864 142,627 152,491 City's net pension liability (asset) - ending (a) - (b) 166,572 207,505 188,129 175,992 Plan fiduciary net position as a percentage of the total pension liability 58.69% 46.02% 47.17% 46.42% Covered payroll 34,313 35,635 36,383 36,201 City's net pension liability (asset) as a percentage of covered payroll 485.45% 582.31% 517.08% 486.15% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 98 2018 (2017) $ 8,582 20,971 2,583 2017 (2016) $ 6,644 18,964 16,926 2016 (2015) $ 6,083 17,857 - 2015 (2014) $ 5,483 14,973 3,331 6,973 8,114 (3,593) 10,446 1,067 - 2,845 19,686 (13,390) 33,833 282,017 315,850 (11,246) 38,139 243,876 282,015 (11,143) 13,864 230,012 243,876 (8,616) 37,702 192,310 230,012 $ $ $ 13,678 4,549 15,468 (13,390) (137) 50 20,218 122,409 142,627 $ $ $ 13,527 4,299 729 (11,246) (105) (2) 7,202 115,207 122,409 $ $ $ 9,691 4,009 4,023 (11,143) (99) (6) 6,475 108,732 115,207 $ $ $ 2014 - 2013 (2013 - 2012) Information not available 8,221 3,432 12,960 (8,616) (104) (124) 15,769 92,963 108,732 173,223 159,606 128,669 121,280 45.16% 43.40% 47.24% 47.27% 37,234 34,196 33,350 31,815 465.22% 466.74% 385.81% 381.20% 99 CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (assets)/liability and related ratios Agent plans June 30, 2022 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: OPEB Total OPEB Liability: Service cost Interest on the total OPEB liability Changes of benefit terms Differences between expected and actual experience in the measurement of the OPEB liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions - employee Net investment income Benefit payments Administrative expenses Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Adjustment to beginning of year Plan fiduciary net position - ending (b) Reporting fiscal year (measurement date) 2022 2021 2020 (2021) (2020) (2019) $ 154 $ 160 $ 106 438 443 481 - $ $ 2018 (2017) $ 119 464 11 (742) - (322) - (950) 76 (127) - 211 (359) (239) (389) 5,965 5,576 (280) 1 5,964 5,965 (296) (583) 6,548 5,965 (293) 149 6,399 6,548 (359) 87 6,312 6,399 160 11 1,474 (239) (6) 1,400 5,414 6,814 $ 2019 (2018) $ 102 467 - $ $ $ 186 8 68 (280) (6) (24) 5,438 5,414 $ $ $ 179 5 276 (296) (5) 159 5,150 130 5,439 $ $ $ 75 1 343 (293) (5) 1 122 5,028 5,150 $ $ $ 202 541 (359) (5) 379 4,649 5,028 City's net OPEB liability (asset) - ending (a) - (b) (1,238) 551 526 1,398 1,371 Plan fiduciary net position as a percentage of the total OPEB liability 122.20% 90.77% 91.18% 78.65% 78.58% Covered payroll 34,313 35,635 36,383 36,201 37,234 City's net OPEB liability (asset) as a percentage of covered payroll -3.61% 1.55% 1.45% 3.86% 3.68% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 100 2017 - 2013 (2016 - 2012) Information not available 101 CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2022 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: Pension Total pension liability: Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expenses Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Reporting fiscal year (measurement date) 2022 2021 2020 (2021) (2020) (2019) $ 4,831 $ 4,680 $ 4,791 16,890 15,828 15,287 - $ $ $ 2019 (2018) $ 4,963 14,302 - 6,137 - 4,174 - (4,945) 3,704 (536) - (11,957) 15,750 232,667 248,417 (8,309) 16,484 216,183 232,667 (8,883) 9,994 206,190 216,184 (6,668) 12,061 194,129 206,190 11,644 2,057 36,833 (11,957) (172) 38,405 127,151 165,556 $ $ $ 9,360 2,004 1,642 (8,309) (133) 5 4,569 122,583 127,152 $ $ $ 9,335 1,504 6,476 (8,883) (113) 8,319 114,265 122,584 $ $ $ 6,023 2,050 7,405 (6,668) (113) 54 8,751 105,514 114,265 City's net pension liability (asset) - ending (a) - (b) 82,861 105,515 93,600 91,925 Plan fiduciary net position as a percentage of the total pension liability 66.64% 54.65% 56.70% 55.42% Covered payroll 20,625 20,122 22,868 21,360 City's net pension liability (asset) as a percentage of covered payroll 401.75% 524.38% 409.31% 430.36% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 102 2018 (2017) $ 5,062 13,114 1,055 2017 (2016) $ 4,065 11,801 12,497 2016 (2015) $ 3,858 11,230 - 2015 (2014) $ 3,805 9,672 1,658 787 5,437 (2,923) 6,345 (823) - 1,452 9,623 (7,304) 18,151 175,978 194,129 (8,199) 23,586 152,392 175,978 (5,996) 8,269 144,123 152,392 (6,800) 19,410 124,713 144,123 $ $ $ 6,578 2,604 11,234 (7,304) (100) 1 13,013 92,501 105,514 $ $ $ 7,339 2,649 547 (8,199) (79) (232) 2,025 90,476 92,501 $ $ $ 4,942 2,380 3,189 (5,996) (78) (389) 4,048 86,428 90,476 $ $ $ 4,630 2,265 10,457 (6,800) (84) 10,468 75,960 86,428 88,615 83,477 61,916 57,695 54.35% 52.56% 59.37% 59.97% 20,840 20,296 20,570 19,291 425.22% 411.30% 301.00% 299.08% 103 2014 - 2013 (2013 - 2012) Information not available CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2022 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: OPEB Total OPEB liability: Service cost Interest on the total OPEB liability Changes of benefit terms Differences between expected and actual experience in the measurement of the OPEB liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions - employee Net investment income Benefit payments Administrative expenses Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) $ $ $ $ 2022 (2021) 83 230 - Reporting fiscal year (measurement date) 2021 2020 (2020) (2019) $ 82 $ 52 231 251 - $ 2019 (2018) 53 238 - $ 2018 (2017) 56 243 3 (346) - (174) - (503) 31 (29) - (39) (145) (108) (141) 3,127 2,986 (122) 17 3,110 3,127 (120) (289) 3,399 3,110 (113) 149 3,250 3,399 (153) (35) 3,285 3,250 2 2 1,257 (108) (5) 1,148 4,567 5,715 $ $ $ 1 1 58 (122) (5) (67) 4,634 4,567 $ $ $ 242 (120) (4) 118 4,516 4,634 $ $ $ 300 (113) (4) (1) 182 4,334 4,516 $ $ $ 465 (153) (4) 308 4,026 4,334 City's net OPEB liability (asset) - ending (a) - (b) (2,729) (1,440) (1,524) (1,117) (1,084) Plan fiduciary net position as a percentage of the total OPEB liability 191.39% 146.07% 149.05% 132.86% 133.36% Covered payroll 20,625 20,122 22,868 21,360 20,840 City's net OPEB liability (asset) as a percentage of covered payroll -13.23% -7.16% -6.66% -5.23% -5.20% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 104 2017 - 2013 (2016 - 2012) Information not available 105 CITY OF GLENDALE, ARIZONA Schedule of OPEB Liability-City Plan June 30, 2022 (amounts expressed in thousands) Total OPEB Liability-City Plan June 30, 2022 June 30, 2021 June 30, 2020 Service Cost Interest Changes of benefit terms Differences betweeen expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes $ 28 (523) 55 317 (123) $ 40 (1,878) 491 (201) (1,548) $ 71 15 (239) (582) (31) (766) Total OPEB Liability balance at June 30, 2021 $ 613 $ 2,161 $ 2,927 Total OPEB Liability balance at June 30, 2022 $ 490 $ 613 $ 2,161 Covered Employee Payroll $ - $ - $ - Total OPEB Liability as a percentage of covered employee payroll Discount Rate N\A N\A N\A 3.69% 1.92% 2.45% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. There are no assets accumulated in trust to pay related benefits. 106 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 2015 - 2013 Information Not Available $ 225 (3,204) (175) (296) (3,450) $ 3,083 2,183 (47,511) (11,823) (174) (6) (54,248) $ 3,494 2,311 (3,580) (2,463) (2,952) (237) (3,427) $ 3,376 1,792 (620) 4,548 $ 6,377 $ 60,625 $ 64,052 $ 59,504 $ 2,927 $ 6,377 $ 60,625 $ 64,052 $ - $ - $ 113,677 $ 93,944 N\A N\A 53.3% 68.2% 3.13% 3.62% 3.43% 2.85% 107 CITY OF GLENDALE, ARIZONA Schedule of city pension/OPEB contributions June 30, 2022 (amounts expressed in thousands) ASRS-Pension: Statutorily required contribution City's contribution in relation to the statutorily required contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of coveredpayroll ASRS-Health insurance premium benefit: Statutorily required contribution City's contribution in relation to the statutorily required contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of coveredpayroll ASRS-Long-term disability: Statutorily required contribution City's contribution in relation to the statutorily required contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of coveredpayroll 2022 $ 9,802 9,802 68,377 $ $ Reporting fiscal year 2021 2020 $ 9,030 $ 8,377 $ $ 14.34% 2022 $ 171 171 68,377 $ $ 9,030 69,867 $ $ 12.92% 8,377 70,766 0.25% 302 69,867 $ $ 0.43% 345 70,766 $ 2022 155 $ $ 155 68,377 $ $ 0.23% $ $ 0.20% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 108 $ $ 8,111 69,407 11.69% $ 2019 327 $ $ 327 69,407 0.49% Reporting fiscal year 2021 2020 $ 139 $ 120 139 69,867 2019 8,111 11.84% Reporting fiscal year 2021 2020 $ 302 $ 345 $ $ $ 120 70,766 0.17% 0.47% $ 2019 119 $ $ 119 69,407 0.17% $ 2018 7,414 $ 2017 7,007 $ 2016 6,472 $ 2015 6,071 $ 2014 5,978 $ 2013 5,971 $ $ 7,414 67,340 $ $ 7,007 64,059 $ $ 6,472 58,301 $ $ 6,071 54,853 $ $ 5,978 54,523 $ $ 5,971 57,475 11.01% 10.94% 11.10% 2016-2013 Information not available $ 2018 385 $ 2017 361 $ $ 385 67,340 $ $ 361 64,059 0.57% $ $ $ 2018 0.56% 96 $ 96 67,340 $ $ 0.14% 11.07% 2017 91 91 64,059 2016-2013 Information not available 0.14% 109 10.96% 10.39% CITY OF GLENDALE, ARIZONA Schedule of city pension/OPEB contributions June 30, 2022 (amounts expressed in thousands) PSPRS Police-Pension: Actuarially determined contribution City's contribution in relation to the actuarially determined contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of covered payroll PSPRS Police-OPEB: Actuarially determined contribution City's contribution in relation to the actuarially determined contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of covered payroll PSPRS Fire-Pension: Actuarially determined contribution City's contribution in relation to the actuarially determined contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of covered payroll PSPRS Fire-OPEB: Actuarially determined contribution City's contribution in relation to the actuarially determined contribution City's contribution deficiency (excess) City's covered payroll City's contributions as a percentage of covered payroll 2022 $ 8,647 Reporting fiscal year 2021 2020 $ 18,012 $ 17,500 177,717 $ (169,070) $ 35,366 $ $ 502.51% $ $ $ 2022 57 57 35,366 18,012 34,313 $ $ 52.49% 17,500 35,635 0.16% 155 34,313 $ $ 0.45% 187 35,635 $ 2022 5,301 $ $ 87,552 (82,251) 21,533 $ $ 406.59% $ $ $ 2022 2 2 21,533 $ $ 48.86% 0.01% 3 20,625 17,306 (364) 36,383 47.57% $ 2019 179 $ $ 183 (4) 36,383 0.50% $ 2019 9,335 $ $ 9,435 (100) 22,868 46.97% $ $ 0.01% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 110 9,451 20,122 Reporting fiscal year 2021 2020 $ 3 $ 1 $ $ $ $ 0.52% Reporting fiscal year 2021 2020 $ 10,077 $ 9,451 10,077 20,625 2019 16,942 49.11% Reporting fiscal year 2021 2020 $ 155 $ 187 $ $ $ 1 20,122 0.00% 41.26% $ $ $ 2019 - 22,868 0.00% $ 2018 10,982 $ 2017 13,678 $ 2016 13,527 $ 2015 9,691 $ 2014 8,221 $ 2013 6,787 $ $ 10,828 154 36,201 $ $ 13,678 37,234 $ $ 13,527 34,196 $ $ 9,691 33,350 $ $ 8,221 31,815 $ $ 6,787 28,336 29.91% $ $ $ 2018 36.74% 39.56% 2016-2013 Information not available 75 $ 2017 202 135 (60) 36,201 $ $ 202 37,234 0.37% 29.06% 25.84% 23.95% 0.54% $ 2018 6,023 $ 2017 6,578 $ 2016 7,339 $ 2015 4,942 $ 2014 4,630 $ 2013 3,454 $ $ 5,607 416 21,360 $ $ 6,578 20,840 $ $ 7,339 20,296 $ $ 4,942 20,570 $ $ 4,630 19,291 $ $ 3,454 18,547 26.25% $ $ $ 2018 31.56% - $ 21,360 $ $ 0.00% 2017 - 20,840 36.16% 24.03% 2016-2013 Information not available 0.00% 111 24.00% 18.62% I. Actuarially determined contribution rates Actuarial determined contribution rates for PSPRS are calculated as of June 30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods and assumptions used to establish the contribution requirements are as follows: PSPRS Actuarial Methods and Assumptions: Actuarial Cost Method Entry age normal Amortization Level Members with initial membership date before July 1, 2017: Level percent-of-pay, closed Members with initial membership on or after July 1, 2017: Level dollar closed Remaining Amortization Period as of the 2020 Actuarial Valuation Members with initial membership date before July 1, 2017: 18 years for unfunded actuarial accrued liability, 20 years for excess Members with initial membership on or after July 1, 2017: 10 years Asset Valuation Method Members with initial membership date before July 1, 2017: 7-year smoothed market value; 80%/120% market corridor Members with initial membership on or after July 1, 2017: 5-year smoothed market value; 80%120% market corridor Actuarial Assumptions: Investment Rate of Return Members with initial membership date before July 1, 2017: In the 2019 actuarial valuation, the investment rate of return was decreased from 7.40% to 7.30%. In the 2017 actuarial valuation, the investment rate of return was decreased from 7.50% to 7.40%. In the 2016 actuarial valuation, the investment rate of return was decreased from 7.85% to 7.50%. In the 2013 actuarial valuation, the investment rate of return was decreased from 8.00% to 7.85%. Members with initial membership on or after July 1, 2017: 7% Projected Salary Increases In the 2017 actuarial valuation, projected salary increases were decreased from 4.0%-8.0% to 3.5%-7.5%. In the 2014 actuarial valuation, projected salary increases were decreased from 4.5%–8.5% to 4.0%–8.0%. In the 2013 actuarial valuation, projected salary increases were decreased from 5.0%–9.0% to 4.5%–8.5%. Wage Growth In the 2017 actuarial valuation, wage growth was decreased from 4.0% to 3.5%. In the 2014 actuarial valuation, wage growth was decreased from 4.5% to 4.0%. In the 2013 actuarial valuation, wage growth was decreased from 5.0% to 4.5%. Retirement Age Experience-based table of rates that is specific to the type of eligibility condition. Last updated for the 2012 valuation pursuant to an experience study of the period July 1, 2006 - June 30, 2011 Mortality In the 2019 actuarial valuation, changed to PUbS-2010 tables. In the 2017 actuarial valuation, changed to RP-2014 tables, with 75% of MP-2016 fully generational projection scales. RP-2000 mortality table (adjusted by 105% for both males and females) 112 II. Factors that affect trends Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS changed benefit terms to reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to explicitly value future permanent benefit increases. PSPRS also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date. These changes also increased the PSPRS-required pension contributions beginning in fiscal year 2016 for members who were retired as of the law’s effective date. These changes increased the PSPRS-required contributions beginning in fiscal year 2019 for members who retired or will retire after the law’s effective date. Also, the City refunded excess employee contributions to PSPRS members. PSPRS allowed the City to reduce its actual employer contributions for the refund amounts. As a result, the City’s pension contributions were less than the actuarially or statutorily determined contributions for 2018 and 2019. The remainder of this page left blank intentionally. 113 City of Glendale, Arizona Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment Income Proceeds from equipment disposal Local Miscellaneous Long term debt issued Total revenues Transfer in Transfer out Amounts available for appropriation Original 109,281 $ Final 109,281 $ Actual 126,329 Variance with Final Budget $ 17,048 136,058 14,554 106,906 17,650 1,983 443 250 102 5,874 260,000 543,820 107,066 (122,352) 637,815 136,058 14,554 106,906 17,650 1,983 443 250 102 5,874 260,000 543,820 107,066 (122,354) 637,813 173,362 26,678 83,325 17,852 2,307 109 315 92 1,163 252,800 558,003 107,066 (123,979) 667,419 37,304 12,124 (23,581) 202 324 (334) 65 (10) (4,711) (7,200) 14,183 (1,625) 29,606 300,704 141,654 21,039 22,924 922 3,000 87,302 577,545 301,152 141,942 21,398 22,696 1,440 2,197 89,199 580,024 291,520 144,949 16,942 19,902 1,257 5,090 479,660 9,632 (3,007) 4,456 2,794 183 2,197 84,109 100,364 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ 60,270 114 $ 57,789 $ 187,759 $ 129,970 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Interest earned on restricted investments not available for appropriation Interest earned on leases not available for appropriation Indirect cost allocation Lease revenue reported on a GAAP basis. Proceeds from disposal of assets. Revenue reported on a GAAP basis. Miscellaneous Certificates of Participation proceeds. Police and fire sales tax revenue. Less: transfers in. Add: transfers out. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Trade in value of vehicle. Internal charges for services provided. Miscellaneous Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. 115 $ 667,419 (126,329) (9,464) 1,055 (10,000) (489) (315) (1,224) 8 (252,800) 39,776 (107,066) 123,979 $ 324,550 $ 479,660 (173) 27 (10,000) 104 $ 469,618 City of Glendale, Arizona Budgetary Comparison Schedule Transportation Special Revenue Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Taxes Intergovernmental Charges for services Investment Income Miscellaneous Total revenues Transfer out Amounts available for appropriation Original 59,420 $ Final 59,420 $ Actual 74,424 Variance with Final Budget $ 15,004 31,560 3,484 92 847 35,983 (15,489) 79,914 31,560 3,484 92 847 35,983 (15,489) 79,914 42,654 1,750 4,745 391 502 50,042 (9,755) 114,711 11,094 (1,734) 4,653 (456) 502 14,059 5,734 34,797 24,372 3,940 2,134 30,446 24,339 3,928 4,680 32,947 21,233 67 21,300 3,106 3,928 4,613 11,647 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Contingency Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ 49,468 $ 46,967 $ 93,411 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 Add: Transfers out. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. 116 $ 46,444 $ 114,711 (74,424) (8) 9,755 $ 50,034 $ 21,300 (8) $ 21,292 City of Glendale, Arizona Budgetary Comparison Schedule Other Special Revenue Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment Income Local Miscellaneous Total revenues Transfer in Amounts available for appropriation Original 19,814 $ Final 19,814 $ Actual 4,949 Variance with Final Budget $ (14,865) 6 10,189 666 246 5 50 82,610 93,772 3,140 22,954 6 10,189 666 246 5 50 82,610 93,772 3,140 116,726 11 36,949 718 308 25 83 160 38,254 2,843 46,046 5 26,760 52 62 20 33 (82,450) (55,518) (297) (70,680) 1,304 8,900 1,826 7,093 9,237 75,775 9,139 113,274 1,874 9,487 1,943 30,692 9,252 33,616 10,203 97,067 1,177 3,911 1,844 31,006 14 2,682 40,634 697 5,576 99 (314) 9,238 33,616 7,521 56,433 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ (90,320) $ 19,659 $ 5,412 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Interest earned on leases not available for appropriation Lease revenue reported on a GAAP basis. Revenue reported on a GAAP basis. Miscellaneous. Less: Transfers in. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Lease expenditure. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. 117 $ (14,247) $ 46,046 (4,949) 117 (63) (5) 2 (2,843) $ 38,305 $ 40,634 4 364 $ 41,002 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2022 (amounts expressed in thousands) I. Basis of accounting The City prepares its annual budget on a basis which differs from the GAAP basis. A budgetary comparison schedule for the general fund and major special revenue fund are included as required supplementary information to provide a meaningful comparison of actual results to budget on a budget basis. Budgetary comparison schedules for all other governmental funds are presented as other supplemental information after the combining statements. The intent of preparing the Budgetary Comparison Schedule is to provide the reader with a more complete understanding and appreciation for the difference between budgetary revenues and other financing sources and expenditures and other financing uses presented in the Budgetary Comparison Statements and the revenues, expenditures, and other financing sources (uses) reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances, which is prepared in accordance with GAAP. The major areas of difference are as follows: 1. 2. 3. 4. 5. 6. Under the budgetary basis, the revenues and expenses relating to police and fire sales tax is not included in the general fund. The police and fire sales tax is included in the general fund for the GAAP financial statements. Under the budgetary basis, investment income is recognized on an amortized cost basis. In accordance with GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and for External Investment Pools" (GASB Statement No. 31), all investment income, including changes in fair value (gains/losses) of investments, are recognized as investment income. Under the budgetary basis, revenues are normally recorded when earned. For GAAP basis, in accordance with GASB Statement No. 33, “Accounting and Financial Reporting for Nonexchange Transactions” (GASB Statement No. 33), and GASB Statement No. 65, all nonexchange transactions, such as government-mandated nonexchange transactions and voluntary nonexchange transactions, can be accrued only if they are measurable and “available”. “Available” has been defined by GASB Statement No. 33 as “collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.” The City has established the availability period as 60 days after the end of the fiscal year. In order to ensure all transactions for the current fiscal year meet this criterion, the City analyzes revenue receipts through August 31 and records adjustments to deferred inflows of resources for transactions that are not collected. Under the budgetary basis, intrafund transfers are recognized as other financing sources (uses). For the GAAP financial statements, intrafund transfers are eliminated to minimize the “grossing-up” of intrafund transfers. Under the budgetary basis, interfund reimbursements or repayments from funds responsible for particular expenditures or expenses to the funds that initially paid for them are recorded as revenues in the payer fund. In accordance with GASB Statement No. 34, an adjustment to eliminate interfund reimbursements is recorded for the GAAP financial statements. In accordance with GAAP, the City has established guidelines for recording expenditure accruals. In order to reasonably ensure that accruals for current fiscal year transactions are materially accurate, the City performs an analysis to identify expenditure accruals for the GAAP financial statements. 118 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2022 (amounts expressed in thousands) 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, capital and debt service 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. The legal level of budgetary control is the total budget as adopted. This is the level at which expenditures cannot legally exceed the appropriated amount. Prior to July 1, after receiving comments in a public hearing, a tentative budget is adopted by the City Council, which sets 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 sets appropriations for each fund. Budget basis expenditures may not exceed appropriations for each fund, except in conjunction with the transfer of contingency funds and/or unused appropriation authority from another fund that is backed by additional revenue or fund balance in the fund receiving the appropriation. 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 budget amendments, but may not increase total appropriations above the total budget, which was legally adopted for the fiscal year. The City Council may authorize a transfer of unencumbered appropriation balanced within an individual city office, department or agency at any time during the fiscal year. During the last three months of the fiscal year, the City Council may approve transfers among city offices, departments, and agencies as necessary. Interfund transfers (i.e., transfers between funds) must be specifically approved by City Council. Procedures for requesting City Council approval of appropriation transfers and delegation of budget responsibility will be set by the City Manager. Budgetary authorization and spending management controls are employed during the year for all funds. Contingency appropriation The principal purpose of a contingency appropriation is to cover any unforeseen expenditure, which may arise after the budget is adopted. It is impossible to estimate revenues exactly or to determine in a prior year the exact expenditures of each program or activity for the ensuing year. Thus, a contingency is essential for budgetary purposes. Contingency appropriation is re-established each fiscal year based on available fund balance and balancing needs of the budget year. The unused balances of contingency appropriations are reflected in the budget basis financial statements. 119 This page left blank intentionally. City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ COMBINING STATEMENTS AND SCHEDULES ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. City of Glendale, Arizona Budgetary Comparison Schedule Municipal Property Corporation Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Intergovernmental Investment Income Total revenues Transfer in Amounts available for appropriation Original 4,530 $ Final 4,530 $ Actual 3,808 Variance with Final Budget $ (722) 14,501 19,031 14,501 19,031 5,212 6 5,218 14,501 23,527 5,212 6 5,218 4,496 20 20 8 12 9,181 5,295 14,496 9,181 5,295 14,496 9,181 5,295 14,484 12 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Interest Principal Total charges to appropriations Budgetary fund balances, June 30 $ 4,535 121 $ 4,535 $ 9,043 $ 4,508 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 User 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. Debt Service Funds Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. General Obligation Debt Service Fund accounts for the debt service payments for the bonds that were issued to finance government infrastructure such as government facilities, parks, libraries, flood control, economic development and open space/trails Highway User 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 other funds to fund this debt. Transportation Debt Service Fund This fund accumulates monies for payment of the transportation revenue bonds. Transportation excise taxes are transferred from a special revenue fund to fund this debt. Excise Tax Revenue Debt Service Fund This fund accounts for the debt that was issued to refund the senior and subordinate excise tax revenue bonds issued by the Municipal Property Corporation. Certificates of Participation Debt Service Fund This fund accounts for the debt that was issued to finance a significant portion of the City’s unfunded pension liabilities with respect to its pension plans in the Arizona Public Safety Personnel Retirement System. 122 Capital Projects Funds Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Streets Construction Fund This fund accounts for the construction of streets, sidewalks, streetlights, traffic signals, and street landscaping funded through GO and revenue bonds issued under authorizations approved by voters on March 10, 1987, and November 2, 1999. In addition, this fund accounts for transportation projects funded by transportation excise tax revenue bonds issued on October 27, 2007. 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 Transit projects Economic development Open space/trails Government facilities Cultural facilities Development Impact Fees Fund This fund accounts for fees covered by Chapter 28, Article VI of the Municipal Code and is restricted in use by ARS 9-463.05. 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 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. 123 City of Glendale, Arizona Combining Governmental Balance Sheet Non-Major Governmental Funds Summary by Fund Type June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Property tax Accounts Intergovernmental receivable Restricted cash and investments Total assets Special Revenue Funds $ LIABILITIES Vouchers payable Retainage payable Compensated Absences - current Due to other funds Unearned revenue Matured interest payable Matured bonds payable Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources-Unavailable Revenue 13,553 Debt Service Funds $ 22,109 Capital Projects Funds $ 78,063 Total NonMajor Governmental Funds Permanent Funds $ 6,131 $ 119,856 5,363 3,283 22,199 593 25,139 47,841 218 78,281 154 6,285 593 5,735 3,283 25,139 154,606 1,326 32 320 5,361 7,039 2 10,711 33,500 44,213 1,196 74 22 1,292 - 2,524 74 32 320 5,383 10,711 33,500 52,544 - 377 - 154 531 15,160 15,160 3,251 3,251 76,989 76,989 6,131 6,131 6,131 95,400 101,531 FUND BALANCES Fund balances: Nonspendable Restricted Total fund balances Total liabilities, deferred outflows of resources and fund balances $ 22,199 124 $ 47,841 $ 78,281 $ 6,285 $ 154,606 City of Glendale, Arizona Combining Balance Sheet Non-Major Special Revenue Funds June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Intergovernmental receivable Total assets Community Development Block Grants $ LIABILITIES Vouchers payable Compensated Absences - current Due to other funds Unearned revenue Total liabilities 1,250 Highway User Revenue Total NonMajor Special Revenue Funds $ $ 12,303 13,553 5,363 1,489 8,102 1,794 14,097 5,363 3,283 22,199 952 3 320 5,361 6,636 374 29 403 1,326 32 320 5,361 7,039 1,466 1,466 13,694 13,694 15,160 15,160 FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities and fund balances $ 8,102 125 $ 14,097 $ 22,199 City of Glendale, Arizona Combining Balance Sheet Non-Major Debt Service Funds June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Property tax Restricted cash and investments Total assets General Obligation $ LIABILITIES Vouchers payable Matured interest payable Matured bonds payable Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources-Unavailable Revenue 1,604 Highway User Transportation $ $ 43 6,273 Excise Tax Revenue $ 11,157 Certificates of Participation Total NonMajor Debt Service Funds $ $ 3,032 22,109 593 19,801 21,998 43 6,273 5,338 16,495 3,032 593 25,139 47,841 2,101 17,700 19,801 - 1 1,295 4,110 5,406 1 4,484 11,690 16,175 2,831 2,831 2 10,711 33,500 44,213 377 - - - - 377 1,820 1,820 43 43 867 867 320 320 201 201 3,251 3,251 FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 21,998 $ 126 43 $ 6,273 $ 16,495 $ 3,032 $ 47,841 City of Glendale, Arizona Combining Balance Sheet Non-Major Capital Projects Funds June 30, 2022 (amounts expressed in thousands) ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Total assets Streets Construction $ LIABILITIES Vouchers payable Retainage payable Unearned revenue Total liabilities 14,861 Fire and Police Construction $ 6,613 Parks Bond Construction $ 3,400 Other Construction $ 9,690 Development Impact Fees $ 43,499 Total NonMajor Capital Projects Funds $ 78,063 218 15,079 6,613 3,400 9,690 43,499 218 78,281 715 56 22 793 136 7 143 5 5 324 324 16 11 27 1,196 74 22 1,292 14,286 14,286 6,470 6,470 3,395 3,395 9,366 9,366 43,472 43,472 76,989 76,989 FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities and fund balances $ 15,079 $ 6,613 127 $ 3,400 $ 9,690 $ 43,499 $ 78,281 City of Glendale, Arizona Combining Balance Sheet Non-Major Permanent Funds June 30, 2022 (amounts expressed in thousands) Cemetery ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Total assets $ 6,131 154 6,285 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources-Unavailable Revenue 154 FUND BALANCES Fund balances: Restricted Total fund balances 6,131 6,131 Total liabilities, deferred inflows of resources and fund balances 128 $ 6,285 This page left blank intentionally. City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds Summary by Fund Type For the Year Ended June 30, 2022 (amounts expressed in thousands) REVENUES Taxes and special assessments Licenses and permits Intergovernmental Fines and forfeitures Investment Income Miscellaneous Total revenues Special Revenue Funds $ 604 22,268 39 291 23,202 Debt Service Funds $ 21,051 10 24 21,085 Capital Projects Funds $ 15,983 2,637 160 656 19,436 Total Non-Major Governmental Funds Permanent Funds $ 32 32 $ 21,051 16,587 24,905 39 202 971 63,755 EXPENDITURES Current: General Government Public Safety Community Services Street Maintenance Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 3,662 14,174 245 - 2,837 475 259 1,934 - 3,082 475 3,921 16,108 17,836 5,366 33,500 20,838 54,583 (33,498) 21,466 26,971 (7,535) 32 33,500 20,838 21,466 99,390 (35,635) Long term debt issued Premium on long term debt issued Payment to refunded bonds escrow agent Proceeds from equipment disposal Proceeds from land sale Transfer in Transfer out Total other financing sources (uses) 37 (5,422) (5,385) 32,225 (31,996) 33,048 33,277 31,375 5,316 1,938 8,468 (187) 46,910 - 63,600 5,316 (31,996) 37 1,938 41,516 (5,609) 74,802 Net change in fund balances Fund balances - beginning Fund balances - ending (19) 15,179 15,160 (221) 3,472 3,251 39,375 37,614 76,989 32 6,099 6,131 39,167 62,364 101,531 OTHER FINANCING SOURCES (USES) $ 130 $ $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) Community Development Block Grants REVENUES Licenses and permits Intergovernmental Fines and forfeitures Miscellaneous Total revenues $ Highway User Revenue 3,610 194 3,804 $ 604 18,658 39 97 19,398 Total Non-Major Special Revenue Funds $ 604 22,268 39 291 23,202 EXPENDITURES Current: Community Services Street Maintenance Total expenditures Excess (deficiency) of revenues over expenditures 3,662 5 3,667 137 14,169 14,169 5,229 3,662 14,174 17,836 5,366 Proceeds from equipment disposal Transfer out Total other financing sources (uses) - 37 (5,422) (5,385) 37 (5,422) (5,385) Net change in fund balances Fund balances - beginning Fund balances - ending 136 1,330 1,466 (155) 13,849 13,694 (19) 15,179 15,160 OTHER FINANCING SOURCES (USES) $ 131 $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Debt Service Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) REVENUES Taxes and special assessments Investment Income Miscellaneous Total revenues General Obligation $ 21,051 15 21,066 Highway User Transportation $ $ - - Excise Tax Revenue $ Certificates of Participation 10 10 9 9 Total Non-Major Debt Service Funds $ 21,051 10 24 21,085 EXPENDITURES Current: General Government Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures 237 - 3 5 - 245 17,700 3,807 21,744 (678) - 4,110 2,589 6,702 (6,702) 11,690 8,968 20,663 (20,653) 5,474 5,474 (5,465) 33,500 20,838 54,583 (33,498) Long term debt issued Payment to refunded bonds escrow agent Transfer in Total other financing sources (uses) 32,225 (31,996) 229 - 6,709 6,709 20,673 20,673 5,666 5,666 32,225 (31,996) 33,048 33,277 Net change in fund balances Fund balances - beginning Fund balances - ending (449) 2,269 1,820 43 43 7 860 867 20 300 320 201 201 (221) 3,472 3,251 OTHER FINANCING SOURCES (USES) $ $ 132 $ $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Capital Projects Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) REVENUES Licenses and permits Intergovernmental Investment Income Miscellaneous Total revenues Streets Construction $ 604 604 Fire and Police Construction $ 3 3 Parks Bond Construction $ 1 1 Other Construction $ 2,637 2,637 Total Non-Major Capital Projects Funds Development Impact Fees $ 15,983 160 48 16,191 $ 15,983 2,637 160 656 19,436 EXPENDITURES Current: General Government Public Safety Community Services Street Maintenance Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 1,887 14,649 16,536 (15,932) 472 1,066 1,538 (1,535) 54 67 3,454 3,575 (3,574) 2,771 192 1,413 4,376 (1,739) 12 3 47 884 946 15,245 2,837 475 259 1,934 21,466 26,971 (7,535) Long term debt issued Premium on long term debt issued Proceeds from land sale Transfer in Transfer out Total other financing sources (uses) 14,650 2,836 8,468 (136) 25,818 5,070 847 (7) 5,910 5,540 977 (33) 6,484 6,115 656 1,938 (11) 8,698 - 31,375 5,316 1,938 8,468 (187) 46,910 Net change in fund balances Fund balances - beginning Fund balances - ending 9,886 4,400 14,286 4,375 2,095 6,470 2,910 485 3,395 6,959 2,407 9,366 15,245 28,227 43,472 39,375 37,614 76,989 OTHER FINANCING SOURCES (USES) $ $ 133 $ $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Permanent Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) Cemetery REVENUES Investment Income Total revenues $ Excess (deficiency) of revenues over expenditures 32 32 32 Net change in fund balances Fund balances - beginning Fund balances - ending $ 134 32 6,099 6,131 City of Glendale, Arizona Budgetary Comparison Schedule Police and Fire Sales Tax Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Taxes $ 29,028 29,028 (30,028) 2,740 Total revenues Transfer out Amounts available for appropriation Budgetary fund balances, June 30 Original 3,740 $ 2,740 135 Final 3,740 $ 29,028 29,028 (30,028) 2,740 $ 2,740 $ Actual 9,937 Variance with Final Budget $ 6,197 39,776 39,776 (30,028) 19,685 10,748 10,748 16,945 19,685 $ 16,945 City of Glendale, Arizona Budgetary Comparison Schedule Community Development Block Grants Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Intergovernmental Miscellaneous Total revenues Amounts available for appropriation Original 1,943 $ Final 1,943 $ Actual 1,332 Variance with Final Budget $ (611) 9,481 142 9,623 11,566 9,481 142 9,623 11,566 3,610 193 3,803 5,135 (5,871) 51 (5,820) (6,431) 8,917 880 8,917 880 3,662 5 5,255 875 60 60 9,857 60 60 9,857 3,667 60 60 6,190 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Community Services Street Maintenance Capital outlay: General Government Total capital outlay Total charges to appropriations Budgetary fund balances, June 30 $ 1,709 136 $ 1,709 $ 1,468 $ (241) City of Glendale, Arizona Budgetary Comparison Schedule Highway User Revenue For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Licenses and permits Intergovernmental Fines and forfeitures Miscellaneous Proceeds from equipment disposal Total revenues Transfer out Amounts available for appropriation Original 11,887 $ Final 11,887 $ Actual 13,928 Variance with Final Budget $ 2,041 839 16,789 17,628 (5,422) 24,093 839 16,789 17,628 (5,422) 24,093 604 18,658 39 126 8 19,435 (5,422) 27,941 (235) 1,869 39 126 8 1,807 3,848 15,229 1,000 15,229 749 14,164 - 1,065 749 321 321 16,550 321 321 16,299 14,164 321 321 2,135 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Contingency Capital outlay: Capital Outlay Total capital outlay Total charges to appropriations Budgetary fund balances, June 30 $ 7,543 137 $ 7,794 $ 13,777 $ 5,983 City of Glendale, Arizona Budgetary Comparison Schedule General Obligation Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Taxes Miscellaneous Total revenues Amounts available for appropriation Original 124 $ Final 124 $ Actual 2,269 Variance with Final Budget $ 2,145 21,216 21,216 21,340 21,216 21,216 21,340 21,051 15 21,066 23,335 (165) 15 (150) 1,995 325 325 8 317 3,992 16,645 20,962 3,992 16,645 20,962 3,807 17,700 21,515 185 (1,055) (553) CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Interest Principal Total charges to appropriations Budgetary fund balances, June 30 $ 378 138 $ 378 $ 1,820 $ 1,442 City of Glendale, Arizona Budgetary Comparison Schedule Highway User Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Original Total revenues Transfers in Amounts available for appropriation 43 $ Final 43 $ Actual 43 Variance with Final Budget $ - 43 43 43 - - - - - CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Debt service: Total charges to appropriations Budgetary fund balances, June 30 $ 43 139 $ 43 $ 43 $ - City of Glendale, Arizona Budgetary Comparison Schedule Transportation Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Total revenues Transfer in Amounts available for appropriation Original 7,195 $ Final 7,195 $ Actual 860 Variance with Final Budget $ (6,335) 6,709 13,904 6,709 13,904 6,709 7,569 - 10 10 3 7 2,589 4,110 6,709 2,589 4,110 6,709 2,589 4,110 6,702 7 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Interest Principal Total charges to appropriations Budgetary fund balances, June 30 $ 7,195 140 $ 7,195 $ 867 $ (6,328) City of Glendale, Arizona Budgetary Comparison Schedule Excise Tax Revenue Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Investment Income Total revenues Transfer in Amounts available for appropriation Original - $ Final - $ Actual 300 Variance with Final Budget $ 300 20,673 20,673 20,673 20,673 10 10 20,673 20,983 10 10 310 15 15 5 10 8,968 11,690 20,673 8,968 11,690 20,673 8,968 11,690 20,663 10 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Interest Principal Total charges to appropriations Budgetary fund balances, June 30 $ - 141 $ - $ 320 $ 320 City of Glendale, Arizona Budgetary Comparison Schedule Certificates of Participation Debt Service Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Original Budgetary fund balance, July 1 RESOURCES (INFLOWS): Miscellaneous Total revenues Transfer in Amounts available for appropriation Final $ Actual - Variance with Final Budget $ - 5,666 5,666 5,666 5,666 9 9 5,666 5,675 9 9 9 5,666 5,666 5,666 5,666 5,474 5,474 192 192 CHARGES TO APPROPRIATIONS (OUTFLOWS) Debt service: Interest Principal Total charges to appropriations Budgetary fund balances, June 30 $ - 142 $ - $ 201 $ 201 City of Glendale, Arizona Budgetary Comparison Schedule Streets Construction Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Miscellaneous Premium on long term debt issued Long term debt issued Total revenues Transfer in Transfer out Amounts available for appropriation Original 8,199 $ Final 8,199 $ Actual 4,339 Variance with Final Budget $ (3,860) 17,344 17,344 14,202 (736) 39,009 17,344 17,344 14,202 (784) 38,961 604 2,836 14,650 18,090 8,468 (136) 30,761 604 2,836 (2,694) 746 (5,734) 648 (8,200) 480 40,346 40,826 480 32,400 32,880 1,887 14,649 16,536 (1,407) 17,751 16,344 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ (1,817) 143 $ 6,081 $ 14,225 $ 8,144 City of Glendale, Arizona Budgetary Comparison Schedule Fire and Police Construction Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Premium on long term debt issued Long term debt issued Miscellaneous Total revenues Transfer out Amounts available for appropriation Original 1,879 $ Final 1,879 $ Actual 2,095 Variance with Final Budget $ 216 5,866 5,866 (6) 7,739 5,866 5,866 (6) 7,739 847 5,070 3 5,920 (7) 8,008 847 (796) 3 54 (1) 269 995 6,743 7,738 995 7,271 8,266 472 1,066 1,538 (472) 995 6,205 6,728 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Public Safety Contingency Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ 1 144 $ (527) $ 6,470 $ 6,997 City of Glendale, Arizona Budgetary Comparison Schedule Parks Bond Construction Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Premium on long term debt issued Long term debt issued Miscellaneous Total revenues Transfer out Amounts available for appropriation Original 640 $ Final 640 $ Actual 485 Variance with Final Budget $ (155) 6,213 6,213 (52) 6,801 6,213 6,213 (52) 6,801 977 5,540 1 6,518 (33) 6,970 977 (673) 1 305 19 169 288 6,513 6,801 16 288 6,747 7,051 67 54 3,454 3,575 (51) 288 (54) 3,293 3,476 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Community Services Contingency General Government Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ - 145 $ (250) $ 3,395 $ 3,645 City of Glendale, Arizona Budgetary Comparison Schedule Other Construction Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Premium on long term debt issued Long term debt issued Intergovernmental Proceeds from land sale Total revenues Transfer out Amounts available for appropriation Original 2,385 $ Final 2,385 $ Actual 2,410 Variance with Final Budget $ 25 9,096 9,096 (59) 11,422 9,096 9,096 (59) 11,422 656 6,115 2,637 1,936 11,344 (11) 13,743 656 (2,981) 2,637 1,936 2,248 48 2,321 50 1,677 9,732 11,459 2,687 1,677 21,772 26,136 2,769 192 1,413 4,374 (82) (192) 1,677 20,359 21,762 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Public Works Community Services Contingency Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ (37) 146 $ (14,714) $ 9,369 $ 24,083 City of Glendale, Arizona Budgetary Comparison Schedule Development Impact Fees Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS) $ Licenses and permits Investment Income Miscellaneous Total revenue Transfer out Amounts available for appropriation Original 24,932 $ Final 24,932 $ Actual 28,227 Variance with Final Budget $ 3,295 14,715 294 15,009 (12) 39,929 14,715 294 15,009 (12) 39,929 15,983 160 48 16,191 44,418 1,268 (134) 48 1,182 12 4,489 40,293 25 4,129 44,447 49 39,775 25 4,688 44,537 3 47 12 884 946 (3) 2 39,775 13 3,804 43,591 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Public Safety Street Maintenance Contingency General Government Capital Outlay Total charges to appropriations Budgetary fund balances, June 30 $ (4,518) 147 $ (4,608) $ 43,472 $ 48,080 City of Glendale, Arizona Budgetary Comparison Schedule Cemetery Perpetual Care Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS) $ Investment Income Total revenues Amounts available for appropriation Original 6,121 $ Final 6,121 $ Actual 6,099 Variance with Final Budget $ (22) 26 26 6,147 26 26 6,147 32 32 6,131 6 6 (16) 6,147 6,147 6,147 6,147 - 6,147 6,147 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Contingency Total charges to appropriations Budgetary fund balances, June 30 $ - 148 $ - $ 6,131 $ 6,131 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. Solid Waste 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 clean. 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. 149 City of Glendale, Arizona Combining Statement of Net Position Non-Major Proprietary Fund-Business Type Activities June 30, 2022 (amounts expressed in thousands) Solid Waste ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts Allowance for uncollectibles Intergovernmental receivable Inventories and prepaid items Total current assets Noncurrent assets: OPEB assets Capital assets: Capital Assets Accumulated Depreciation Capital assets, net Total noncurrent assets Total assets $ DEFERRED OUTFLOWS OF RESOURCES Debit amounts related to pensions and OPEB Total deferred outflows of resources 15 Total Non-Major Enterprise Funds Housing $ 2,717 $ 2,732 3,039 (618) 2,436 8 119 15 2,859 3,047 (618) 119 15 5,295 195 52 247 20,928 (10,684) 10,244 10,439 12,875 15,669 (11,681) 3,988 4,040 6,899 36,597 (22,365) 14,232 14,479 19,774 1,420 1,420 419 419 1,839 1,839 285 294 3 1,564 91 2,237 90 18 62 8 9 51 238 375 312 65 8 1,573 142 2,475 194 5,146 5,340 7,577 162 1,648 22 1,832 2,070 356 6,794 22 7,172 9,647 1,919 526 2,445 10,244 3,988 195 (5,640) 4,799 52 682 4,722 14,232 247 (4,958) 9,521 LIABILITIES Current liabilities: Vouchers payable Compensated absences Intergovernmental payable Unearned revenue Due to other funds Deposits Total current liabilities Noncurrent liabilities: Compensated absences Net pension & OPEB liabilities Other long term debt Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Credit amounts related to pensions and OPEB NET POSITION Net investment in capital assets Restricted for: OPEB benefits Unrestricted Total net position $ 150 $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Proprietary Fund-Business Type Activities For the Year Ended June 30, 2022 (amounts expressed in thousands) Solid Waste Operating Revenues Intergovernmental Container service Curb service Other fees Total operating revenues $ Operating Expenses Housing Solid Waste Amortization and depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment Income Gain/(loss) on disposal of assets Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Transfer in Change in net position Total net position - beginning Total net position - ending $ 151 5,094 15,760 20,854 Housing $ Total Non-Major Enterprise Funds 11,107 $ 2,731 13,838 11,107 5,094 15,760 2,731 34,692 18,845 1,957 20,802 52 14,885 266 15,151 (1,313) 14,885 18,845 2,223 35,953 (1,261) 196 196 248 1,817 2,065 2,734 4,799 1 1 (1,312) 530 387 (395) 5,117 4,722 $ 1 196 197 (1,064) 530 2,204 1,670 7,851 9,521 $ City of Glendale, Arizona Combining Statement of Cash Flows Non-Major Proprietary Funds - Business-Type Activities For the Year June 30, 2022 (amounts expressed in thousands) Solid Waste CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash received from federal operating grants Cash paid to internal city departments Cash paid to external vendors Cash paid to employees for services Net cash provided (used) by operating activities $ 23,102 11,197 (10,746) (15,726) (7,752) 75 1,817 1,461 3,278 387 1 388 2,204 1,462 3,666 196 (4,912) (4,716) - 196 (4,912) (4,716) $ (20) 35 15 $ 1 1 (954) 3,671 2,717 $ 1 1 (974) 3,706 2,732 $ 52 $ (1,313) $ (1,261) 1,957 266 2,223 $ (221) (168) (1,524) (159) 1,596 (65) 3 (11) (42) 1,418 $ 1 88 (44) (398) (42) 417 36 (32) (1) (57) (262) (2) (1,343) $ (220) 88 (212) (1,922) (201) 2,013 (29) (29) (12) (99) (262) (2) 75 $ $ - $ $ 530 $ 530 $ 530 530 Transfers in Advances to/due from other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets Acquisition of capital assets and rights Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income (Loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization and depreciation Changes in assets and liabilities: Accounts receivable Intergovernmental receivable Net OPEB asset Net pension and OPEB liability Deferred outflows related to pensions and OPEB Deferred inflows related to pensions and OPEB Vouchers and accounts payable Intergovernmental payable Deposits Compensated absences Unearned rent Other long term liabilities Net cash provided (used) by operating activities Noncash investing, capital and financing activities Contributions of capital assets Total noncash investing, capital and financing activities 152 20,636 (10,746) (1,744) (6,728) 1,418 $ Total 2,466 $ 11,197 (13,982) (1,024) (1,343) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interest received from investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - beginning of year Balances - end of the year Housing City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Intergovernmental Metered water sales Sewer service charges Impact Fees Other fees Investment Income Miscellaneous Premium on long term debt issued Long term debt issued Total revenues Transfer in Transfer out Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Contingency Water Sewer Administrative and general Capital Outlay Principal Interest expense Total charges to appropriations Budgetary fund balance, June 30 $ Original 61,930 $ Final 61,930 $ Actual 39,310 Variance with Final Budget $ (22,620) 535 55,587 36,375 2,310 1,721 1,160 18,909 26,000 142,597 25,300 (25,187) 204,640 535 55,587 36,375 2,310 1,721 1,160 18,909 26,000 142,597 25,300 (25,187) 204,640 49 59,649 41,254 4,410 2,520 202 18,481 5,561 20,665 152,791 438 (192) 192,347 (486) 4,062 4,879 2,100 799 (958) (428) 5,561 (5,335) 10,194 (24,862) 24,995 (12,293) 3,000 30,676 19,083 16,258 75,991 17,135 7,707 169,850 1,880 31,748 19,632 16,043 75,851 17,135 7,707 169,996 30,353 18,742 15,322 40,346 17,520 7,203 129,486 1,880 1,395 890 721 35,505 (385) 504 40,510 34,790 153 $ 34,644 $ 62,861 $ 28,217 City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Landfill user fees Recycling sales Other fees Investment Income Proceeds from equipment disposal Long term debt issued Premium on long term debt issued Total revenues Transfer in Transfer out Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Contingency Landfill Capital Outlay Interest expense Total charges to appropriations Budgetary fund balance, June 30 $ Original 8,263 $ Final 8,263 $ Actual 6,993 Variance with Final Budget $ (1,270) 10,460 650 475 138 10,900 22,623 1,072 (85) 31,873 10,460 650 475 138 10,900 22,623 1,072 (85) 31,873 12,409 29 590 37 16 8,915 2,073 24,069 1,072 (77) 32,057 1,949 (621) 115 (101) 16 (1,985) 2,073 1,446 8 184 500 10,383 15,898 26,781 500 10,383 15,898 26,781 8,758 10,143 113 19,014 500 1,625 5,755 (113) 7,767 5,092 154 $ 5,092 $ 13,043 $ 7,951 City of Glendale, Arizona Budgetary Comparison Schedule Solid Waste Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Container service Curb service Investment Income Miscellaneous Proceeds from equipment disposal Total revenues Transfer in Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Contingency Solid Waste Capital Outlay Total charges to appropriations Budgetary fund balance, June 30 Original 149 $ Final 149 $ Actual 1,922 Variance with Final Budget $ 1,773 4,844 15,670 21 53 49 20,637 204 20,990 4,844 15,670 21 53 49 20,637 204 20,990 5,094 15,741 246 21,081 1,817 24,820 250 71 (21) (53) 197 444 1,613 3,830 200 17,613 3,092 20,905 200 17,613 5,329 23,142 19,121 4,962 24,083 200 (1,508) 367 (941) $ 85 155 $ (2,152) $ 737 $ 2,889 City of Glendale, Arizona Budgetary Comparison Schedule Housing Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Intergovernmental Investment Income Miscellaneous Total revenues Transfer in Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Housing Total charges to appropriations Budgetary fund balance, June 30 $ Original - $ Final - $ Actual 7,155 Variance with Final Budget $ 7,155 15,519 15,519 387 15,906 15,519 15,519 387 15,906 11,638 1 2,728 14,367 387 21,909 (3,881) 1 2,728 (1,152) 6,003 15,101 15,101 15,101 15,101 14,952 14,952 149 149 805 156 $ 805 $ 6,957 $ 6,152 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ INTERNAL SERVICE FUNDS ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 This page left blank intentionally. INTERNAL SERVICE FUNDS Risk Management Fund This fund accounts for potential torts, and loss and destruction of assets. The City’s risk management fund purchases excess and commercial insurance. Workers’ Compensation Fund This fund accounts for work-related injuries to employees. The workers’ compensation fund provides statutory coverage for each injured workers’ compensation claim. Employee Benefits Trust Fund This fund accounts for reserves to meet future cost increases for health-related insurance. Fleet Services Fund This fund is used to track income and expenses of the internal services provided to city departments. The fund specifically covers vehicle maintenance needs and fuel purchased for city vehicles. Technology Fund This fund accounts for the support all the city’s computers and hardware and software needs, including both the everyday operations and the replacement of equipment. 159 City of Glendale, Arizona Combining Statement of Net Position Non-Major Internal Service Funds June 30, 2022 (amounts expressed in thousands) Risk Management ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts Intergovernmental receivable Inventories and prepaid items Total current assets Noncurrent assets: Restricted Deposits OPEB assets Capital assets: Capital Assets Accumulated Depreciation Capital assets, net Total noncurrent assets Total assets $ DEFERRED OUTFLOWS OF RESOURCES Debit amounts related to pensions and OPEB Total deferred outflows of resources Workers' Compensation 7,698 $ 11,775 Employee Benefits $ Fleet Services 11,336 $ 649 Technology $ 11,919 Total NonMajor Internal Service Funds $ 43,377 42 7,740 11,775 111 11,447 8 178 835 11,919 111 8 220 43,716 8 150 6 1,425 - 84 122 1,575 220 8 7,748 156 11,931 1,425 12,872 540 (501) 39 123 958 8,837 (4,359) 4,478 4,600 16,519 9,377 (4,860) 4,517 6,312 50,028 75 75 39 39 - 1,084 1,084 1,044 1,044 2,242 2,242 11 28 7,205 7,244 102 48 11,200 11,350 2,600 4,526 7,126 642 193 835 244 393 637 3,599 662 22,931 27,192 31 12 43 7,287 66 4 70 11,420 7,126 221 2,520 2,741 3,576 348 122 470 1,107 666 2,658 3,324 30,516 82 31 - 1,284 1,051 2,448 - - - 39 4,478 8 446 454 6 513 519 5,746 5,746 84 (2,941) (2,818) 122 10,805 15,405 4,517 220 14,569 19,306 LIABILITIES Current liabilities: Vouchers payable Compensated absences Estimated claims payable Total current liabilities Noncurrent liabilities: Compensated absences Net pension & OPEB liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Credit amounts related to pensions and OPEB NET POSITION Net investment in capital assets Restricted for: OPEB benefits Unrestricted Total net position $ $ 160 $ $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) OPERATING REVENUES Self insurance premium Charges for services Other fees Total operating revenues Risk Management $ OPERATING EXPENSES Administrative and general Insurance claims and premiums Amortization and depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment Income Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Change in net position Total net position - beginning Total net position - ending $ 8,611 236 8,847 Workers' Compensation $ 7,176 3 7,179 Employee Benefits $ 30,484 78 30,562 Fleet Services $ 11,392 5 11,397 Technology $ Total Internal Service Funds - $ 13,583 14 13,597 46,271 24,975 336 71,582 3,420 6,998 10,418 (1,571) 2,728 4,060 6,788 391 288 29,452 29,740 822 11,185 9 11,194 203 10,683 998 11,681 1,916 28,304 40,510 1,007 69,821 1,761 48 48 (1,523) (1,523) 1,977 454 75 75 466 466 53 519 53 53 875 875 4,871 5,746 203 203 (3,021) (2,818) 28 28 1,944 1,944 13,461 15,405 $ 204 204 1,965 1,965 17,341 19,306 $ 161 $ $ $ City of Glendale, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash paid to internal city departments Cash paid to external vendors Cash paid for insurance and in settlement of claims Cash paid to employees for services Net cash provided (used) by operating activities Risk Management $ 8,847 (3) (3,224) (3,524) (264) 1,832 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets and rights Net cash provided (used) by capital and related financing activities Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income (Loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization and depreciation Changes in assets and liabilities: Accounts receivable Intergovernmental receivable Net OPEB asset Net pension and OPEB liability Deferred outflows related to pensions and OPEB Deferred inflows related to pensions and OPEB Inventories and prepaid items Vouchers and accounts payable Compensated absences Claims payable Net cash provided (used) by operating activities $ 7,179 (3) (942) (3,857) (283) 2,094 Employee Benefits $ Fleet Services 30,753 (29,689) 1,064 $ 11,398 (397) (8,008) (2,620) 373 Technology $ Total 13,597 $ (843) (5,898) (3,980) 2,876 71,774 (1,246) (18,072) (37,070) (7,147) 8,239 - - - (9) (9) (742) (742) (751) (751) $ 48 48 1,880 5,818 7,698 $ 75 75 2,169 9,606 11,775 $ 53 53 1,117 10,219 11,336 $ 364 285 649 $ 28 28 2,162 9,757 11,919 $ 204 204 7,692 35,685 43,377 $ (1,571) $ 391 $ 822 $ 203 $ 1,916 $ 1,761 - - - 9 998 1,007 $ (7) (77) (6) 81 (26) (40) 4 3,474 1,832 $ (5) (37) 7 25 (223) 57 1,879 2,094 $ 67 1,064 1 (73) (656) (68) 686 (118) 366 23 373 (105) (949) (100) 1,017 13 86 2,876 $ 192 1 (190) (1,719) (167) 1,809 (144) 183 170 5,336 8,239 CASH FLOWS FROM INVESTING ACTIVITIES Interest received from investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - beginning of year Balances - end of the year Workers' Compensation The notes to financial statements are an integral part of this statement. 162 $ $ City of Glendale, Arizona Budgetary Comparison Schedule Risk Management Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Self insurance premium Investment Income Miscellaneous Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Contingency Administrative and general Insurance claims and premiums Total charges to appropriations Budgetary fund balance, June 30 $ Original 5,234 $ Final 5,234 $ Actual 5,770 Variance with Final Budget $ 536 6,491 20 100 6,611 11,845 6,491 20 100 6,611 11,845 8,611 48 236 8,895 14,665 2,120 28 136 2,284 2,820 1,000 3,180 3,431 7,611 4,180 3,431 7,611 3,452 3,524 6,976 728 (93) 635 4,234 163 $ 4,234 $ 7,689 $ 3,455 City of Glendale, Arizona Budgetary Comparison Schedule Employee Benefits For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Self insurance premium Investment Income Miscellaneous Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Administrative and general Insurance claims and premiums Total charges to appropriations Budgetary fund balance, June 30 $ Original 12,254 $ Final 12,254 $ Actual 9,414 Variance with Final Budget $ (2,840) 32,874 32,874 45,128 32,874 32,874 45,128 30,484 53 77 30,614 40,028 (2,390) 53 77 (2,260) (5,100) 406 32,468 32,874 406 32,468 32,874 288 29,469 29,757 118 2,999 3,117 12,254 164 $ 12,254 $ 10,271 $ (1,983) City of Glendale, Arizona Budgetary Comparison Schedule Workers' Compensation Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Self insurance premium Investment Income Miscellaneous Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Contingency Administrative and general Insurance claims and premiums Total charges to appropriations Budgetary fund balance, June 30 $ Original 9,902 $ Final 9,902 $ Actual 9,432 Variance with Final Budget $ (470) 7,150 26 7,176 17,078 7,150 26 7,176 17,078 7,176 75 3 7,254 16,686 26 49 3 78 (392) 1,000 2,217 4,959 8,176 1,000 2,217 4,959 8,176 2,682 2,181 4,863 1,000 (465) 2,778 3,313 8,902 165 $ 8,902 $ 11,823 $ 2,921 City of Glendale, Arizona Budgetary Comparison Schedule Fleet Services Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Miscellaneous Charges for services Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Administrative and general Capital Outlay Total charges to appropriations Budgetary fund balance, June 30 Original - $ Final - $ Actual 40 Variance with Final Budget $ 40 475 10,008 10,483 10,483 475 10,008 10,483 10,483 5 11,391 11,396 11,436 (470) 1,383 913 953 10,233 250 10,483 11,778 150 11,928 11,272 8 11,280 506 142 648 $ - 166 $ (1,445) $ 156 $ 1,601 City of Glendale, Arizona Budgetary Comparsion Schedule Technology Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) Budgeted Amounts Budgetary fund balance, July 1 RESOURCES (INFLOWS): $ Self insurance premium Investment Income Miscellaneous Total revenues Amounts available for appropriation CHARGES TO APPROPRIATIONS (OUTFLOWS): Administrative and general Capital Outlay Total charges to appropriations Budgetary fund balance, June 30 Original 3,673 $ Final 3,673 $ Actual 9,505 Variance with Final Budget $ 5,832 13,873 13,873 17,546 13,873 13,873 17,546 13,583 28 14 13,625 23,130 (290) 28 14 (248) 5,584 16,400 1,146 17,546 16,400 1,146 17,546 10,733 742 11,475 5,667 404 6,071 $ - 167 $ - $ 11,655 $ 11,655 This page left blank intentionally. City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 1 of 7 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. Balance Sheet Line Item No. 111 112 113 114 115 100 Account Description 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 Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ 1,213,808 51,321 1,265,129 1,405,863 46,428 1,452,291 - Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ $ $ - - - - Total $ 2,619,671 46,428 51,321 2,717,420 121 122 124 125 126 126.1 126.2 127 128 128.1 129 120 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 Allowance for doubtful accounts - other Notes, loans, & mortgages receivable - current Fraud recovery Allowance for doubtful accounts - fraud Accrued interest receivable Total receivables, net of allowances for doubtful accounts 6,330 2,269 (227) 3,084 (3,084) 8,372 73,607 1,900 4,844 (4,844) 75,507 - 416 416 - 42,774 42,774 - 74,023 44,674 6,330 7,113 (5,071) 3,084 (3,084) 127,069 131 132 135 142 143 143.1 144 145 150 Current investments: Investments - unrestricted Investments - restricted Investments - restricted for payment of current liability Prepaid expenses and other assets Inventories Allowance for obsolete inventories Inter program - due from Assets held for sale Total current assets 15,536 (777) 147,600 1,435,860 1,527,798 - 416 - 42,774 (147,600) 15,536 (777) 2,859,248 169 (147,600) City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 2 of 7 (continued) Balance Sheet Line Item No. 161 162 163 164 165 166 167 168 160 Account Description 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 Deferred outflow of resources Total assets and deferred outflow of resources 311 312 313 321 322 324 325 331 332 333 341 342 343 344 345 346 347 348 310 LIABILITIES AND EQUITY-NET ASSETS/POSITION: 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 Accounts payable - HUD PHA Programs Accounts payable - PHA projects Accounts payable - other government Tenant security deposits Unearned revenues Total current portion of L/T debt - capital projects/mortgage revenue Current portion of L/T debt - operating borrowings Other current liabilities Accrued liabilities - other Inter program - due to Loan liability - current Total current liabilities Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations Project Total 135,533 11,281,189 601,523 203,309 2,377,945 (11,481,965) 817,024 3,934,558 149,998 102,908 (199,294) 53,612 - - - - - 135,533 11,431,187 601,523 306,217 2,377,945 (11,681,259) 817,024 3,988,170 17,831 3,952,389 5,388,249 144,795 5,533,044 29,477 83,089 1,610,887 239,373 1,850,260 - 416 416 - 4,226 4,226 47,000 34,315 81,315 (147,600) $ (147,600) $ 51,534 4,039,704 6,898,952 418,483 7,317,435 46,109 46,109 $ $ 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 171 172 173 174 176 180 190 200 290 PHC Public Housing CARES Act Funding Housing Choice Vouchers $ $ 39,692 4,554 51,321 7,723 103,290 $ $ 15,884 13,392 62,382 147,184 238,842 170 $ $ - $ $ 416 416 $ $ - $ $ (147,600) (147,600) Total 46,109 55,576 17,946 51,321 7,723 62,382 241,057 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 3 of 7 (continued) Balance Sheet Line Item No. Account Description Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations Total 351 352 353 354 355 356 357 350 300 Noncurrent liabilities: Long-term debt, net of current - capital projects/mortgage revenue 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 liabilities Total noncurrent liabilities Total liabilities 40,989 570,038 611,027 714,317 21,622 120,524 942,375 1,084,521 1,323,363 - 416 - 135,095 135,095 181,204 (147,600) 21,622 161,513 1,647,508 1,830,643 2,071,700 400 Deferred inflow of resources 181,987 300,856 - - - 43,130 - 525,973 3,934,558 702,183 4,636,741 5,533,045 53,612 51,534 120,894 226,040 1,850,259 - 416 - (143,019) (143,019) $ 81,315 $ (147,600) 3,988,170 51,534 680,058 4,719,762 7,317,435 508.4 511.4 512.4 513 600 EQUITY - NET ASSETS/POSITION: Net investment in capital assets Restricted net position Unrestricted net position Total equity - net assets/position Total liabilities, deferred inflow of resources and equity - net assets/position $ $ $ $ $ $ (continued) 171 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 4 of 7 (continued) Income Statement Line Item No. Account Description 70300 70400 70500 REVENUE: Net tenant rental revenue Tenant revenue - other Total tenant revenue 70600 70610 HUD PHA operating grants Capital grants 70710 70720 70730 70740 70750 70700 Management fee Asset management fee Bookkeeping fee Front line service fee Other fees Total fee revenue 70800 71100 71200 71300 71310 71400 71500 71600 72000 70000 Other government grants Investment income - unrestricted Mortgage interest income Proceeds from disposition of assets held for sale Cost of sale of assets Fraud recovery Other revenue Gain or loss on sale of capital assets Investment income - restricted Total revenue Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ $ 466,450 23,068 489,518 - - Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ $ $ - - - - Total $ 466,450 23,068 489,518 802,266 530,473 9,552,223 - 64,680 - 61,232 - 263,711 - 363,103 - - 11,107,215 530,473 - - - - - - - - 645 368 1,823,270 844 2,554 2,235,574 $ 11,791,195 64,680 61,232 $ 263,711 $ 363,103 - 1,489 2,554 2,235,942 $ 14,367,191 $ $ $ (continued) 172 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 5 of 7 (continued) Income Statement Line Item No. Account Description 91100 91200 91300 91310 91400 91500 91600 91700 91800 91810 91900 91000 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 92000 92100 92200 92300 92400 92500 Asset management fee Tenant services - salaries Relocation costs Employee benefit contributions - tenant services Tenant services - other Total Tenant services 93100 93200 93300 93400 93500 93600 93700 93800 93000 94100 94200 94300 94500 94000 Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ $ $ $ $ $ 155,764 142 52,140 17,121 300 100,685 326,152 675,231 163,058 33,209 1,200 890 126,810 1,000,398 62,766 1,645 64,411 - 5,453 258,258 263,711 67,773 162,890 1,160 14 231,837 - Total $ 966,987 142 379,733 51,490 1,500 890 485,767 1,886,509 - - - 57,654 3,578 61,232 - 96,016 96,016 - 57,654 3,578 96,016 157,248 Water Electricity Gas Fuel Labor Sewer Employee benefit contributions - utilities Other utilities expense Total utilities 112,098 22,291 2,242 44,235 180,866 - - - - - - 112,098 22,291 2,242 44,235 180,866 Ordinary maintenance and operations - labor Ordinary maintenance and operations - materials & other Ordinary maintenance and operations - contract costs Employee benefit contributions - ordinary maintenance Total maintenance 225,774 118,239 240,201 36,398 620,612 2,675 2,675 269 269 - - - - 225,774 121,183 240,201 36,398 623,556 $ $ $ $ $ $ $ $ (continued) 173 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 6 of 7 (continued) Income Statement Line Item No. Account Description Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ $ $ Total 95100 95200 95300 95500 95000 Protective services - labor Protective services - other contract costs Protective services - other Employee benefit contributions - protective services Total protective services 96110 96120 96130 96140 96100 Property insurance Liability insurance Workmen's compensation All other insurance Total insurance premiums 23,680 8,380 32,060 13,359 37,747 51,106 - - - 1,482 4,186 5,668 - 23,680 23,221 41,933 88,834 96200 96210 96300 96400 96500 96600 96800 96000 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 2,133 2,133 6,731 6,731 - - - - - 6,731 2,133 8,864 96710 96720 96730 96700 Interest on mortgage (or bonds) payable Interest on notes payable (short and long term) Amortization of bond issue costs Total Interest expense and amortization cost - - - - - - - - 96900 Total operating expenses 1,161,823 1,060,910 64,680 61,232 263,711 333,521 - 2,945,877 661,447 10,730,285 - - - 29,582 - 11,421,314 4,410 - - - - - - - 4,410 - - 9,496,853 - - - 327,401 - 9,824,254 262,320 1,428,553 2,111,988 4,061 $ 12,673,812 64,680 61,232 $ 263,711 $ 660,922 - 2,111,988 266,381 $ 15,152,910 97000 Excess of operating revenue over operating expenses 97100 97200 Extraordinary maintenance Casualty losses - non-capitalized 97300 Housing assistance payments 97350 97400 97500 97600 97700 97800 90000 HAP Portability-in Depreciation expense Fraud losses Capital outlays - governmental funds Debt principal payment - governmental funds Dwelling units rent expense Total expenses $ - - $ - $ - - - $ - $ - (continued) 174 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 7 of 7 (continued) Income Statement Line Item No. Account Description 10010 10020 OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out 10030 10040 10050 10060 10070 10080 10091 10092 10093 10094 10100 10000 Operating transfers from/to primary government Operating transfers from/to component unit Proceeds from notes, loans and bonds Proceeds from property sales Extraordinary items, net gain/loss Special items, net gain/loss Inter project excess cash transfer in Inter project excess cash transfer out Transfers between program and project - in Transfers between program and project - out Total other financing sources (uses) Excess (deficiency) of total revenues over (under) total expenses Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ $ 55,578 (55,578) 86,563 86,563 481,280 $ - $ 300,000 300,000 (582,617) - - $ - $ - Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ - $ $ $ (297,819) $ - $ - $ - $ - $ - - - Total $ $ - $ $ - $ 55,578 (55,578) 386,563 386,563 (399,156) MEMO ACCOUNT INFORMATION 11020 Required annual debt principal payments 11030 Beginning equity 4,064,061 808,657 - - - 154,800 - 5,027,518 11040 11050 11060 11070 11080 11090 11100 11170 11180 11190 11210 11270 Prior period adjustments, equity transfers & correction of errors Changes in compensated absence balance Changes in contingent liability balance Changes in unrecognized pension transition liability Changes in special term/severance benefits liability Changes in allowance for doubtful accounts - dwelling rents Changes in allowance for doubtful accounts - other Administrative fee equity Housing assistance payments equity Unit months available Unit months leased Excess cash 91,400 1,833 1,803 1,223,878 263,868 24,806 11,559 11,539 - - - - - - 91,400 263,868 24,806 13,392 13,342 1,223,878 11610 11620 11630 11640 11650 11660 13510 13901 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 530,473 - - - - - - - 530,473 - $ 175 - - City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 6 of 7 (continued) Income Statement Line Item No. Account Description Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ $ $ Total 95100 95200 95300 95500 95000 Protective services - labor Protective services - other contract costs Protective services - other Employee benefit contributions - protective services Total protective services 96110 96120 96130 96140 96100 Property insurance Liability insurance Workmen's compensation All other insurance Total insurance premiums 23,680 8,380 32,060 13,359 37,747 51,106 - - - 1,482 4,186 5,668 - 23,680 23,221 41,933 88,834 96200 96210 96300 96400 96500 96600 96800 96000 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 2,133 2,133 6,731 6,731 - - - - - 6,731 2,133 8,864 96710 96720 96730 96700 Interest on mortgage (or bonds) payable Interest on notes payable (short and long term) Amortization of bond issue costs Total Interest expense and amortization cost - - - - - - - - 96900 Total operating expenses 1,161,823 1,060,910 64,680 61,232 263,711 333,521 - 2,945,877 661,447 10,730,285 - - - 29,582 - 11,421,314 4,410 - - - - - - - 4,410 - - 9,496,853 - - - 327,401 - 9,824,254 262,320 1,428,553 2,111,988 4,061 $ 12,673,812 64,680 61,232 $ 263,711 $ 660,922 - 2,111,988 266,381 $ 15,152,910 97000 Excess of operating revenue over operating expenses 97100 97200 Extraordinary maintenance Casualty losses - non-capitalized 97300 Housing assistance payments 97350 97400 97500 97600 97700 97800 90000 HAP Portability-in Depreciation expense Fraud losses Capital outlays - governmental funds Debt principal payment - governmental funds Dwelling units rent expense Total expenses $ - - $ - $ - - - $ - $ - (continued) 176 174 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2022 (rounded to nearest dollar) 7 of 7 (continued) Income Statement Line Item No. Account Description 10010 10020 OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out 10030 10040 10050 10060 10070 10080 10091 10092 10093 10094 10100 10000 Operating transfers from/to primary government Operating transfers from/to component unit Proceeds from notes, loans and bonds Proceeds from property sales Extraordinary items, net gain/loss Special items, net gain/loss Inter project excess cash transfer in Inter project excess cash transfer out Transfers between program and project - in Transfers between program and project - out Total other financing sources (uses) Excess (deficiency) of total revenues over (under) total expenses Project Total Housing Choice Vouchers PHC Public Housing CARES Act Funding $ $ $ $ 55,578 (55,578) 86,563 86,563 481,280 $ - $ 300,000 300,000 (582,617) - - Resident Opportunity and Supportive Services HCV CARES Act Funding EHV Emergency Housing Voucher Eliminations $ $ - $ $ - $ (297,819) $ - $ $ $ - $ $ - $ - $ - $ - - Total $ - $ - $ 55,578 (55,578) 386,563 386,563 (399,156) MEMO ACCOUNT INFORMATION 11020 Required annual debt principal payments 11030 Beginning equity 4,064,061 808,657 - - - 154,800 - 5,027,518 11040 11050 11060 11070 11080 11090 11100 11170 11180 11190 11210 11270 Prior period adjustments, equity transfers & correction of errors Changes in compensated absence balance Changes in contingent liability balance Changes in unrecognized pension transition liability Changes in special term/severance benefits liability Changes in allowance for doubtful accounts - dwelling rents Changes in allowance for doubtful accounts - other Administrative fee equity Housing assistance payments equity Unit months available Unit months leased Excess cash 91,400 1,833 1,803 1,223,878 263,868 24,806 11,559 11,539 - - - - - - 91,400 263,868 24,806 13,392 13,342 1,223,878 11610 11620 11630 11640 11650 11660 13510 13901 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 530,473 - - - - - - - 530,473 - $ 177 175 - - This page left blank intentionally. City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT _________________________________________________________ STATISTICAL SECTION ___________________________ FOR THE FISCAL YEAR ENDED JUNE 30, 2022 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. 178-185 Revenue Capacity These schedules contain information to help the reader assess the city’s local revenue source, the property tax and sales tax. 186-190 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. 192-199 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. 200-202 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. 203-207 177 Schedule 1 City of Glendale, Arizona Net Position by Component Last Ten Fiscal Years (amounts expressed in thousands) Government activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position 2022 $ 488,913 296,434 (149,871) 2021 $ 471,198 200,500 (162,270) 2020 $ 465,366 170,205 (193,716) 2019 $ 416,078 184,654 (215,449) 2018 $ 451,826 185,396 (246,697) 635,476 509,428 441,855 385,283 390,525 Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position 439,039 45,051 24,755 397,187 37,992 39,451 362,679 33,896 32,618 313,704 32,943 53,699 280,920 27,550 78,272 508,845 474,630 429,193 400,346 386,742 Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position 927,952 341,485 (125,116) 868,385 238,492 (122,819) 828,045 204,101 (161,098) 729,782 217,597 (161,750) 732,746 212,946 (168,425) $ 1,144,321 $ 984,058 $ 871,048 178 $ 785,629 $ 777,267 2017 $ $ 471,979 157,251 (278,767) 2016 $ 456,001 163,592 (239,670) 2015 $ 456,897 168,714 (240,749) 2014 $ 2013 448,083 161,027 (277,093) $ 438,366 186,106 (59,797) 350,463 379,923 384,862 332,017 564,675 267,111 22,897 83,920 256,488 21,576 96,300 253,134 24,090 92,357 256,164 22,300 123,699 251,765 12,264 161,999 373,928 374,364 369,581 402,163 426,028 739,090 180,148 (194,847) 712,489 185,168 (143,370) 710,031 192,804 (148,392) 704,247 183,327 (153,394) 690,131 198,370 102,202 724,391 $ 754,287 $ 754,443 $ 734,180 $ 179 990,703 Schedule 2 City of Glendale, Arizona Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Expenses Governmental activities: General government $ 26,904 $ 47,850 $ 45,972 $ 56,530 $ 42,915 $ 61,373 $ 64,228 $ 60,490 $ 73,637 $ 37,447 Public safety 157,622 166,243 165,030 158,883 134,977 166,790 132,498 127,870 116,070 115,694 Public works 33,267 30,451 31,211 30,232 25,072 24,768 24,859 21,482 20,524 19,230 Community services 64,057 35,751 28,378 28,010 30,885 33,752 32,796 31,311 30,796 33,831 - - - - 3,290 3,930 4,262 4,980 5,895 5,655 70,250 50,283 43,436 44,992 20,976 21,848 21,219 19,180 25,207 20,000 Community environment Street maintenance Interest on long-term debt 26,471 22,056 24,133 26,181 24,916 27,827 27,932 32,106 34,808 42,413 Total governmental activities expenses 378,571 352,634 338,160 344,828 283,031 340,288 307,794 297,419 306,937 274,270 Water and sewer 97,895 90,604 87,212 83,603 81,911 83,500 80,375 74,807 77,243 73,460 Landfill 11,415 11,319 10,051 9,921 9,852 11,302 9,049 7,727 7,554 7,486 Solid Waste 20,702 19,310 18,351 17,242 15,150 15,698 15,016 15,059 14,471 16,122 Business-type activities: Housing Total business-type activities expenses Total primary government expenses 15,135 14,182 13,663 12,910 12,498 12,644 12,730 13,159 13,088 14,037 145,147 135,415 129,277 123,676 119,411 123,144 117,170 110,752 112,356 111,105 $ 523,718 $ 488,049 $ 467,437 $ 468,504 $ 402,442 $ 463,432 $ 424,964 $ 408,171 $ 419,293 $ 385,375 $ 30,054 $ 23,415 $ 15,648 $ 16,572 $ 17,847 $ 15,027 $ 16,381 $ 18,498 $ 17,666 $ 12,520 Program revenues Governmental activities: Charges for services: General government Public safety 5,201 3,860 3,803 4,126 2,295 5,445 6,148 6,084 6,369 Public works 4,411 3,969 4,478 3,883 651 536 650 631 1,126 5,778 1,149 Community services 3,187 1,909 2,995 4,318 10,890 13,490 9,649 11,704 10,486 11,003 - Community environment - - - - 338 308 305 309 - Street maintenance 95 33 124 207 662 357 193 25 - - 78,929 57,903 50,999 30,906 26,523 27,519 26,225 25,665 25,168 25,156 Operating grants and contributions Capital grants and contributions Total governmental activities program revenues 34,752 18,112 33,570 12,728 12,382 6,669 6,603 11,403 10,748 7,904 156,629 109,201 111,617 72,740 71,588 69,351 66,154 74,319 71,563 63,510 180 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Business-type activities: Charges for services: Water and sewer 106,476 103,533 89,208 86,004 86,288 80,219 81,829 78,541 81,065 Landfill 12,815 12,238 10,383 9,670 9,444 9,451 9,858 9,757 8,646 7,994 Solid Waste 21,050 19,854 19,048 18,080 16,048 14,856 15,181 14,944 14,836 14,791 Housing 81,963 2,730 3,123 2,984 3,527 3,355 2,876 2,980 3,265 3,504 4,137 Operating grants and contributions 11,140 11,462 10,866 9,397 9,682 10,230 9,809 8,855 9,357 9,376 Capital grants and contributions 10,864 3,211 5,816 3,940 2,054 2,815 815 2,562 2,423 831 Total business-type activities program revenues 165,075 153,421 138,305 130,618 126,871 120,447 120,472 117,924 119,831 119,092 Total primary government program revenues 321,704 262,622 249,922 203,358 198,459 189,798 186,626 192,243 191,394 182,602 Governmental activities (221,942) (243,433) (226,543) (272,088) (211,443) (270,937) (241,640) (223,100) (210,760) (210,760) Business-type activities Total primary government net expense 19,928 (202,014) $ 18,006 (225,427) $ 9,028 (217,515) $ 6,942 (265,146) $ 7,460 (203,983) $ (2,697) (273,634) $ 3,302 (238,338) $ 7,172 (215,928) $ 7,987 (202,773) $ 26,885 $ 26,473 $ 25,718 $ 25,877 $ 25,519 $ 24,955 $ 24,531 $ 23,881 $ 23,577 $ Net (expense)/revenue $ 7,987 (202,773) General revenues and other changes in net position Governmental activities: Taxes: Property taxes $ 21,372 Sales taxes 249,451 205,325 180,842 171,821 162,299 155,779 150,201 147,175 131,983 132,872 Unrestricted state shared sales tax 35,086 29,941 25,910 24,849 23,627 22,024 21,482 20,695 19,734 18,558 Unrestricted urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings Gain (loss) on disposal of capital assets 32,780 36,069 32,419 29,876 30,456 29,378 27,297 27,446 25,271 23,159 11,815 11,976 10,643 10,647 10,166 9,458 9,351 8,664 8,086 7,586 (8,777) (464) 5,931 1,919 (694) (253) 1,225 1,070 726 716 - - - - - - - (688) 78 353 Miscellaneous 4,195 3,023 2,978 3,177 1,490 1,400 3,417 520 687 367 Transfers (3,445) (1,337) (1,326) (1,320) (1,358) (1,264) (803) 39,198 (64) (641) 347,990 311,006 283,115 266,846 251,505 241,477 236,701 267,961 210,078 204,342 Total governmental activities Business-type activities: Investment earnings 285 227 1,277 1,628 1,368 883 614 643 463 1,878 Gain (loss) on disposal of capital assets - - - - - - - 127 167 43 Loss on joint venture - - - - - - - (3,329) - - 10,557 25,867 17,216 3,714 2,628 114 63 86 67 70 Miscellaneous Transfers Total business-type activities Total primary government 3,445 1,337 1,326 1,320 1,358 1,264 803 (39,198) 64 641 $ 14,287 362,277 $ 27,431 338,437 $ 19,819 302,934 $ 6,662 273,508 $ 5,354 256,859 $ 2,261 243,738 $ 1,480 238,181 $ (41,671) 226,290 $ 761 210,839 $ 2,632 206,974 $ 126,048 $ 67,573 $ 56,572 $ (5,242) $ 40,062 $ (29,460) $ (4,939) $ 44,861 $ (682) $ (6,418) $ 34,215 160,263 $ 45,437 113,010 $ 28,847 85,419 $ 13,604 8,362 $ 12,814 52,876 $ (436) (29,896) $ 4,782 (157) $ (34,499) 10,362 $ 8,748 8,066 $ 10,619 4,201 Changes in net position Governmental activities Business-type activities Total primary government 181 Schedule 3 City of Glendale, Arizona Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2022 General fund Nonspendable Restricted Committed Assigned Unassigned Total general fund All other governmental funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds $ $ $ $ 2021 394 19,795 123,769 54,905 198,863 $ 6,332 199,999 2,142 1,705 210,178 $ $ $ 2020 6,143 10,047 66,822 54,511 137,523 $ 6,244 137,087 1,974 959 146,264 $ $ $ 2019 5,621 5,374 34,322 49,648 94,965 $ 6,171 107,088 1,734 569 (502) 115,060 $ $ $ 2018 2,933 5,604 5,685 43,523 57,745 $ 6,020 119,994 1,571 737 128,322 $ 182 $ $ 2017 2,919 6,274 12,678 43,474 65,345 $ 5,810 118,991 2,548 430 (653) 127,126 $ $ $ 2016 2,934 7,443 10,647 40,559 61,583 $ 5,861 91,908 2,295 170 (3,770) 96,464 $ $ $ 2015 2,940 8,495 12,483 35,226 59,144 $ 5,818 97,170 1,273 319 104,580 $ $ $ 2014 216 10,313 1,114 8,563 26,033 46,239 $ 5,768 99,970 1,945 107,683 $ $ $ 2013 600 688 1,554 (4,835) (1,993) $ 5,801 102,241 123 202 108,367 $ $ $ 650 311 1,676 (14,438) (11,801) 5,774 103,772 115 144 109,805 This page left blank intentionally. Schedule 4 City of Glendale, Arizona Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2022 Revenues Taxes and special assessments Licenses and permits Intergovernmental Local revenues Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Total revenues $ 276,843 43,276 152,120 191 12,118 2,654 (8,731) 3,755 2021 $ 232,032 35,656 124,611 184 7,504 2,782 (380) 4,323 2020 $ 206,815 19,182 129,329 173 8,514 2,426 6,063 3,647 2019 $ 198,012 16,350 95,573 177 10,744 2,982 3,276 4,375 2018 $ 188,553 12,534 94,191 58 10,250 3,337 129 6,490 2017 $ 181,576 12,403 89,684 300 13,486 3,699 276 5,079 2016 $ 176,489 11,951 86,273 17 12,613 3,857 1,517 6,850 2015 $ 170,605 10,610 87,112 525 17,685 3,556 1,258 5,662 2014 $ 159,328 11,522 81,364 18 14,781 3,735 900 4,500 2013 $ 149,705 10,373 76,520 36 11,896 3,469 762 3,822 482,226 406,712 376,149 331,489 315,542 306,503 299,567 297,013 276,148 256,583 General government Public safety Public works Community services Community environment Street maintenance Miscellaneous Capital outlay Debt service: Principal Interest 36,424 402,258 15,529 54,825 38,604 29,332 29,294 151,271 15,298 30,512 38,389 28,068 30,174 146,573 16,164 23,514 31,772 23,525 43,615 146,166 15,674 23,772 34,053 24,663 30,961 139,287 11,400 31,954 3,621 10,861 42,652 29,531 131,576 9,484 30,659 3,979 11,195 39,053 34,671 126,498 9,429 28,461 4,285 10,260 27 59,189 33,494 114,143 8,673 26,379 4,977 7,951 5,791 20,949 29,666 108,397 7,463 25,536 5,826 8,352 2,323 14,662 16,065 103,610 7,859 27,966 5,554 8,305 4,617 13,980 38,795 30,019 36,020 25,604 61,450 27,681 39,706 29,654 29,359 28,300 46,456 30,704 35,650 30,382 37,251 32,870 30,043 35,628 26,441 43,038 Total expenditures Excess of revenues over (under) expenditures 645,786 354,456 360,853 357,303 328,395 332,637 338,852 292,478 267,896 257,435 (163,560) 52,256 15,296 (25,814) (12,853) (26,134) (39,285) 4,535 8,252 (852) Expenditures 184 Other financing sources (uses) Discount on long-term debt Long-term debt issued Refunding bonds issued Payment to redeem lease Premium on long-term debt issued Proceeds from equipment disposal Proceeds from land sale Capital lease proceeds Proceeds from loans Payment to redeem/refunded bonds escrow agent Current bond refunding principal Current bond refunding interest Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures $ 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 284,175 32,225 5,316 602 1,938 (31,996) 58,860 (62,306) 13,700 2,277 366 6,500 54,047 (55,384) 295 9,693 50,009 (51,335) 15,385 1,983 238 3,125 56,739 (58,060) 91,940 15,686 2,910 15,240 (77,139) 61,927 (63,287) 19,330 2,391 48,450 (49,714) 27,285 33,830 4,948 329 6,615 7,353 (30,470) 84,460 (85,263) 209,255 35,751 2,650 (131,966) (110,145) (1,022) 240,694 (201,496) 174 8 48,704 (48,768) (1,557) 239,875 19,779 589 (256,054) 52,136 (53,267) 288,814 21,506 8,662 19,410 47,277 20,457 49,087 43,721 118 1,501 125,254 11.16% $ 73,762 18.88% $ 23,958 26.42% $ (6,404) 20.85% $ 34,424 20.18% $ (5,677) 26.28% $ 9,802 23.61% $ 48,256 25.82% $ 8,370 25.93% $ 649 28.54% Note: The debt service percentage of noncapital expenditures does not include other financing sources/uses. The percentage equals the total principal and interest expenditures divided by the total expenditures less capital outlay. 185 Schedule 5 City of Glendale, Arizona Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (amounts expressed in thousands) Major Components Personal (3) Utilities Rails and Wires Less: Tax Exempt Property Net Assessed Value (1) $ 1,130,460 $ 45,507 $ 53,158 $ 485,894 $ 1,047,273 1.90 $ 11,471,039 13.366 % 316,206 1,213,829 41,750 53,581 477,258 1,148,108 2.29 12,489,163 13.014 2014-15 379,087 1,451,325 40,191 55,687 518,191 1,408,099 2.15 12,452,875 15.469 2015-16 403,055 1,546,186 40,431 59,918 529,361 1,520,229 2.20 13,046,428 15.708 2016-17 499,308 1,635,370 37,350 60,892 579,745 1,653,175 2.14 13,617,839 16.397 2017-18 535,252 1,771,647 49,605 60,918 596,446 1,820,976 2.07 19,526,518 12.380 2018-19 565,975 1,924,149 48,588 59,594 590,661 2,007,645 1.98 21,072,143 12.331 2019-20 645,653 2,100,805 47,258 60,722 673,484 2,180,954 1.86 23,159,054 12.325 2020-21 722,615 2,271,767 55,014 64,004 718,396 2,395,004 1.80 25,276,448 12.317 2021-22 781,897 2,463,822 60,382 64,327 749,713 2,620,715 1.73 27,872,355 12.092 Fiscal Year Improvements 304,041 2013-14 2012-13 Real Estate $ Total Direct Tax Rate Estimated Actual Value(1) Assessed Value as a Percentage of Actual Value(2) Source: Maricopa County Assessor's Office and Maricopa County's Department of Finance 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. (3) The Assessor's Office no longer breaks down the secured and unsecured personal property as of 2013. All prior years secured and unsecured have been combined. 186 Schedule 6 City of Glendale, Arizona Direct and Overlapping Governments Property Tax Rates Last Ten Fiscal Years Per $100 Assessed Valuation Overlapping Rates* City of Glendale Glendale Elementary and High School Districts Peoria Unified School Districts Deer Valley Unified School Districts Fiscal Year Basic Rate General Obligation Debt Service 2012-13 0.22 1.68 1.90 22.93 18.08 17.75 2013-14 0.50 1.79 2.29 25.06 19.82 18.91 2014-15 0.49 1.66 2.15 23.58 19.64 18.85 2015-16 0.49 1.71 2.20 22.54 20.66 18.86 2016-17 0.48 1.67 2.15 23.29 20.82 19.16 2017-18 0.46 1.61 2.07 23.61 20.02 19.10 2018-19 0.44 1.54 1.98 22.17 18.96 18.63 2019-20 0.42 1.44 1.86 22.13 18.47 18.17 2020-21 0.40 1.40 1.80 21.20 17.91 17.56 2021-22 0.39 1.34 1.73 20.47 17.13 17.06 Source: Maricopa County 2021 Tax Rates Note: The City rounds the rates to two digits from the four presented by the county. * Overlapping rates are those of local and county governments that apply to property owners within the City of Glendale. Not all overlapping rates apply to all City of Glendale property owners (e.g., the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district). 187 Schedule 7 City of Glendale, Arizona Principal Property Taxpayers Current Year and Nine Years Ago June 30, 2022 (amounts expressed in thousands) Tax Year 2022 Taxpayer Yam Westgate LLC Arizona Public Service Company VHS of Arrowhead Inc Wal -Mart Stores Inc RRB Beverage Operations Inc Arrowhead Towne Center Outlets at Westgate LLC American Furniture Warehouse Co. Reserve at Arrowhead LLC BDPF Park 303 LLC JQH-Glendale AZ Delevopment LLC Q-West Corporation (CenturyLink) NewWestgate LLC Stadium Development LLC Southwest Gas Corporation Total principal taxpayers Rank 1 2 3 4 5 6 7 8 9 10 $ $ Assessed Valuation 25,265 19,845 15,154 11,432 11,355 11,054 10,812 9,595 9,546 9,246 Tax Year 2013 Percentage of Total City Taxable Assessed Value 0.96 % 0.76 0.58 0.44 0.43 0.42 0.41 0.37 0.36 0.35 133,304 5.08 % Assessed Valuation Rank 1 2 4 $ 17,905 11,631 7,353 1.71 % 1.11 0.70 3 10 10,495 3,682 1.00 0.35 5 6 7 8 9 6,818 6,497 6,287 4,618 3,956 0.65 0.62 0.60 0.44 0.38 79,242 7.56 % $ Source: Maricopa County Treasurer's Office Notes: 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. The percentage of Total City Taxable Assessed Value is based on the Net Assessed Value. 188 Percentage of Total City Taxable Assessed Value Schedule 8 City of Glendale, Arizona Property Tax Levies and Collections Last Ten Fiscal Years (amounts expressed in thousands) Collected within the Fiscal Year of Levy Total Collections to Date Collections Fiscal Year 2012-13 Total Percent of (1) Tax Levy $ 21,841 Amount $ in Subsequent Percent of (2) Years Levy 21,268 97.38 % $ (28) Amount $ Levy 20,194 92.46 % 2013-14 23,943 23,490 97.38 138 23,628 98.68 2014-15 24,429 23,729 98.11 234 23,963 98.09 2015-16 24,850 24,255 97.61 219 24,474 98.49 2016-17 25,253 24,638 97.56 368 25,006 99.02 2017-18 25,592 25,202 98.48 285 25,487 99.59 2018-19 25,953 25,521 98.34 164 25,685 98.97 2019-20 25,831 25,300 97.94 392 25,692 99.46 2020-21 26,619 26,039 97.82 353 26,392 99.15 2021-22 27,126 26,639 98.20 26,639 98.20 Source: Maricopa County Treasurer's Office (1) Total levy includes only secured property. (2) Includes collections and resolutions. 189 Schedule 9 City of Glendale, Arizona City Transaction Privilege Taxes (Sales Tax) by Category Last Ten Fiscal Years (amounts expressed in thousands) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Retail sales Contracting Rentals Utilities Telecom/cable TV Restaurant/bar Amusement Other $ 136,147 27,575 26,519 9,412 2,119 29,383 5,537 12,734 $ 118,580 17,047 22,064 9,271 2,364 23,184 2,975 9,827 $ 100,561 13,988 21,407 8,629 3,029 20,883 2,893 9,364 $ 95,042 7,212 20,598 8,898 3,006 22,280 5,023 9,519 $ 89,762 6,684 18,629 8,995 3,486 20,498 4,920 8,574 $ 88,804 5,559 17,394 8,775 3,523 20,070 3,615 7,347 $ 84,710 4,810 16,581 8,544 4,244 18,767 4,176 8,802 $ 79,062 6,457 16,146 8,678 4,773 17,651 5,673 6,686 $ 73,924 7,948 14,502 8,732 5,072 15,842 2,110 5,808 $ 67,157 5,724 14,182 8,028 5,540 14,284 2,154 5,917 Total $ 249,426 $ 205,312 $ 180,754 $ 171,578 $ 161,548 $ 155,087 $ 150,634 $ 145,126 $ 133,938 $ 122,986 % Growth by year Retail sales Contracting Rentals Utilities Telecom/cable TV Restaurant/bar Amusement Other 14.8 % 61.8 20.2 1.5 (10.4) 26.7 86.1 29.6 17.9 % 21.9 3.1 7.4 (22.0) 11.0 2.8 4.9 5.8 % 94.0 3.9 (3.0) 0.8 (6.3) (42.4) (1.6) 5.9 % 7.9 10.6 (1.1) (13.8) 8.7 2.1 11.0 1.1 % 20.2 7.1 2.5 (1.1) 2.1 36.1 16.7 4.8 % 15.6 4.9 2.7 (17.0) 6.9 (13.4) (16.5) 7.1 % (25.5) 2.7 (1.5) (11.1) 6.3 (26.4) 31.6 7.0 % (18.8) 11.3 (0.6) (5.9) 11.4 168.9 15.1 10.1 % 38.9 2.3 8.8 (8.4) 10.9 (2.0) (1.8) 3.3 % (23.3) (2.6) (0.9) (15.6) 6.9 55.7 (31.5) Total 21.5 % 13.6 % 5.3 % 6.2 % 4.2 % 3.0 % 3.8 % 8.4 % 8.9 % 27.3 % Note: The 2012 and prior years 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%. The 2013 and later years tax rate for City activities is 2.9% except for telecommunications which is 6.1%, restaurant/bars 3.9%, hotel/motel 7.9%, retail sales food for home consumption 2.5%, and retail sales of individual items over $5,000 2.2%. The amounts represent sales tax dollars collected for the fiscal year presented. 190 This page left blank intentionally. Schedule 10 City of Glendale, Arizona Ratio of Outstanding Debt by Type(1) Last Ten Fiscal Years (amounts expressed in thousands) General Obligation Bonds(4) Fiscal Year 2012-13 $ 163,130 Government Activities Street and Highway Revenue Bonds(4) $ Excise Tax Revenue Bonds 8,055 $ 468,875 Certificates of Participation Transportation Bonds $ 91,140 $ - Capital Leases $ Notes Payable 11,094 $ - 2013-14 151,206 (5) 3,736 (5) 477,736 (4) (5) 89,317 (4) (5) - 10,361 - 2014-15 133,168 (5) 1,912 (5) 477,747 (4) (5) 91,047 (4) (5) - 57 - 2015-16 141,553 (5) - (5) 475,918 (4) (5) 87,031 (4) (5) - 6,620 5,515 2016-17 125,384 (5) - (5) 468,431 (4) (5) 83,119 (4) (5) - 4,484 3,677 2017-18 154,834 (5) - (5) 455,495 (4) (5) 78,590 (4) (5) - 2,278 1,839 2018-19 152,066 (5) - (5) 439,912 (4) (5) 73,952 (4) (5) - - - 2019-20 107,678 (5) - (5) 422,679 (4) (5) 69,209 (4) (5) - - - 2020-21 106,367 (5) - (5) 403,550 (4) (5) 64,691 (4) (5) - - - 2021-22 126,548 (5) - (5) 383,719 (4) (5) 59,977 (4) (5) 261 - 192 252,800 (4) Water Sewer G.O. Bonds Fiscal Year Landfill G.O. Bonds 5,515 (4) $ - 2013-14 - 2014-15 Business Activities Water Sewer Revenue Bonds Notes Payable Total Primary Government Capital Leases Total Debt per Capita(3) Percentage of Personal Income(2) 1,020,889 (1) 4,471 12.21 - 999,610 (5) 4,327 11.52 - - 964,898 (5) 4,141 10.18 249,302 (4) (5) - - 965,939 (5) 4,255 10.81 - 237,247 (4) (5) - - 922,342 (5) 3,875 9.14 - - 222,217 (4) (5) - - 915,253 (5) 3,814 9.18 2018-19 - - 203,917 (4) (5) - - 869,847 (5) 3,466 8.07 2019-20 - - 185,231 (4) (5) - - 784,797 (5) 3,090 6.48 2020-21 - - 197,234 (4) (5) - - 771,842 (5) 3,003 6.04 2021-22 - 10,962 (4) (5) 210,401 (4) (5) - - 1,044,668 (5) 4,146 7.62 2012-13 $ $ 273,080 $ - - 267,254 (4) (5) - - - 260,967 (4) (5) 2015-16 - - 2016-17 - 2017-18 $ - $ (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. (3) Numbers not expressed in thousands. (4) Amounts outstanding less July 1. (5) Includes unamortized premiums of debt issuance and discount on debt issuance. 193 Schedule 11 City of Glendale, Arizona Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (amounts expressed in thousands) Fiscal General Obligation Less: Amounts Available in Debt Service Year Bonds(4) Funds(2) (1) Secondary Assessed Total Limited Property Property Value Value Percentage of Net Assessed Per Value of Property(6) Capita(3) 12,641 156,004 1,050,893 (9) N/A 14.90 681.22 147,810 9,310 138,500 1,148,164 (9) N/A 12.06 599.28 2014-15 126,305 8,270 118,035 1,406,062 (9) N/A 10.43 507.29 2015-16 135,130 4,511 130,619 N/A 1,173,091 (9) 11.12 (5) 556.38 2016-17 120,000 3,657 116,343 N/A 1,227,220 (9) 7.04 (5) 488.84 2017-18 146,985 31,750 115,235 N/A 1,306,946 (9) 8.82 (5) 480.43 2018-19 143,460 28,593 114,867 N/A 1,413,253 (9) 8.13 (5) 458.18 (7) 2019-20 100,445 1,545 98,900 N/A 1,478,280 (9) 6.69 (5) 389.24 (7) 2020-21 98,230 2,269 95,961 N/A 1,582,239 (9) 6.19 (5) 381.74 (7) 2021-22 125,320 1,820 123,500 N/A 1,682,808 (9) 7.34 (5) 487.53 (7) 2012-13 168,645 2013-14 (8) Sources: Maricopa County - Abstract by tax authority and class ADOA Office of Employment and Population Statistics - Population estimates Notes: (1) Includes general obligation water and sewer bonds. (2) Includes the general obligation debt service fund balance at June 30. (3) Per capita is in actual dollars. Population estimates per ADOA. (4) Includes the July 1 payment. (5) In accordance with Proposition 117, The Arizona Property Tax Assessed Valuation Amendment , property taxes are calculated based on limited assessed value instead of secondary full cash value beginning with tax year 2015. (6) Calculation uses the February State Abstract. (7) Calculation uses projected population figure from City of Glendale Annual Budget Book (8) Includes general obligation landfill bonds. (9) In the prior year ACFR, the amounts were not expressed in thousands. Amounts are now expressed in thousands. 194 Schedule 12 City of Glendale, Arizona Net Direct and Overlapping Governmental Activities Debt June 30, 2022 (amounts expressed in thousands) Net Debt Percentage Applicable Amount Applicable Outstanding to Glendale to Glendale (2) $ 185,125 23.4751 % $ Glendale Elementary School District No. 40 40,180 99.2430 39,876 Deer Valley Unified School District No. 97 164,875 18.0784 29,807 Alhambra Elementary School District No. 68 38,980 18.9966 7,405 Glendale Union High School District No. 205 135,580 23.9117 32,419 - 3.6279 - Maricopa County Community College District 250,065 3.6279 9,072 Phoenix Union High School District No. 210 386,570 1.3330 5,153 Pendergast Elementary School District No. 92 47,180 24.7298 11,668 Tolleson Union High School District No. 214 169,815 (4) 7.2027 12,231 Washington Elementary School District No. 6 104,015 3.0608 3,184 Dysart Unified School District No. 89 97,086 1.3005 1,263 Agua Fria Union High School District No. 216 123,255 1.6934 2,087 Litchfield Elementary School District No. 79 43,385 2.6097 1,132 Cartwright Elementary School District No. 83 32,895 - Jurisdiction Peoria Unified School District No. 11 Maricopa County 43,458 - Total Overlapping Debt 1,819,006 198,755 (1) 816,170 816,170 $ 2,635,176 $ 1,014,925 City of Glendale Debt Total Source: Maricopa County - Abstract by tax authority and class, Abstract by tax area code and Annual Report of Bonded Indebtedness. (1) The City of Glendale debt includes total General Obligation (GO) and governmental revenue bonds debt outstanding, capital leases, notes payable, settlement obligation, bond premiums and discounts, less debt service fund balances for current year. (2) Calculation based on Net Debt Outstanding multiplied by Percentage Applicable to Glendale, which is determined by dividing the tax area code net secondary assessed value by the tax authority net secondary assessed value. (3) The Net Debt Outstanding source is Arizona's Open Book Report of Outstanding Indebtedness for the most recent fiscal year available. 195 Schedule 13 City of Glendale, Arizona Legal Debt Margin Information Last Ten Fiscal Years (amounts expressed in thousands) Legal Debt Margin Calculation for Fiscal Year 2022 6% Type Bonds Assessed value Debt limit (6% of assessed value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin (1) (1) 2013 2014 Debt limit Total net debt applicable to limit $ 62,836 $ 68,886 7,309 Legal debt margin Total net debt applicable to the limit as a percentage of debt limit (1) (2) (1)(2)(4) (1)(2)(3)(4) (1)(2)(3)(4) 2020 84,795 $ 2019 $ 73,633 $ 78,417 $ 10,580 10,580 7,978 $ 68,042 $ 59,916 $ 63,053 $ 70,439 -0.24% 15.01% 14.37% 10.17% 2016 2017 $ 67,877 $ 70,496 2,415 (165) $ 55,527 $ 66,471 11.63% 3.51% 20% Type Bonds 75,993 (1) (1) 2014 2021 (1)(2)(3)(4) 2022 88,697 $ 143,700 $ 9,039 $ 79,658 10.38% Debt limit Total net debt applicable to limit $ 209,455 $ 229,622 148,695 Legal debt margin (1) (2) (1)(2)(4) 2019 (1)(2)(3)(4) 2020 $ 245,444 $ 261,389 $ 282,651 $ 120,039 105,763 107,257 $ 108,057 $ 114,947 $ 139,681 $ 154,132 52.24% 51.08% 43.09% 41.03% 2016 2017 $ 226,257 $ 234,986 136,085 118,200 $ 60,760 $ 93,537 70.99% 59.26% (1)(2)(3)(4) (1)(2)(3)(4) 106,065 $ 176,586 $ 37.53% 135,186 19,450 $ 137,793 12.37% $ $ 2,620,716 524,143 117,806 (1,566) 116,240 407,903 (1)(2)(3)(4) 2021 (1)(2)(3)(4) 2022 295,656 $ 479,001 $ 205,795 30.39% (1) Debt applicable to limit: General obligation bonds net of July 1 payment made prior to June 30. (2) FY 2012-FY 2014, based on secondary full cash value, FY 2015-FY2020, based on limited assessed value, starting in FY 2021, based on full cash value. (3) Beginning in FY 2017, the assessed value is from Maricopa County Assessor's Office February State Abstract report (4) In FY 2020, adjusted debt applicable to limit by moving the General Obligation Bond 2016B from 20% to 6% 196 157,243 5.92% 89,861 $ (1)(2)(3)(4) 8,514 10.19% 2018 2015 2,620,716 157,243 19,704 (254) 19,450 137,793 (1)(2)(3)(4) 8,802 $ $ Assessed value Debt limit (20% of assessed value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin 2013 Total net debt applicable to the limit as a percentage of debt limit (1)(2)(3)(4) 2018 2015 $ (1)(2)(3)(4) 95,584 $ 383,417 19.95% 524,143 116,240 $ 407,903 22.18% This page left blank intentionally. Schedule 14 City of Glendale, Arizona Pledged-Revenue Coverage Last Ten Fiscal Years (amounts expressed in thousands) Utility Service Charges(1) Fiscal Year 2012-13 $ 83,454 Less: Operating Expenses(2) $ 39,203 Water and Sewer Revenue Bonds Net Debt Service Available Revenue Principal Interest $ 44,251 $ 9,755 $ Coverage 13,152 1.93 2013-14 81,733 42,544 39,189 10,210 12,706 1.71 2014-15 79,325 41,712 37,613 13,170 10,918 1.56 2015-16 83,088 45,431 37,657 9,415 10,719 1.87 2016-17 83,442 49,005 34,437 9,805 10,321 1.71 2017-18 90,844 50,962 39,882 12,780 9,860 1.76 2018-19 96,012 52,151 43,861 16,050 9,398 1.72 2019-20 111,854 55,576 56,278 16,435 8,646 2.24 2020-21 130,218 58,792 71,426 16,585 7,550 2.96 2021-22 118,609 63,693 54,916 17,520 7,203 2.22 198 Fiscal Year Transportation Sales Tax 2012-13 $ 21,691 Transportation Bonds Debt Service Principal Interest $ 3,005 $ Excise Tax Revenue(3) Coverage 4,321 2.96 $ 131,931 Excise Tax Revenue Bonds (4) Debt Service Principal Interest $ 2,790 (5) $ 30,713 Coverage (6) 3.94 2014-15 23,112 3,125 4,201 3.15 141,674 6,500 22,951 4.81 2014-15 24,690 3,545 3,597 3.46 151,963 2,585 21,175 6.40 2015-16 25,566 3,380 3,763 3.58 156,210 10,025 20,984 5.04 2016-17 26,362 3,550 3,594 3.69 160,534 5,075 21,033 6.15 2017-18 27,571 3,925 3,114 3.92 170,484 6,580 19,542 6.53 2018-19 29,231 4,035 2,999 4.16 169,868 12,645 20,104 5.19 2019-20 30,989 4,140 2,893 4.41 179,289 14,295 19,556 5.30 2020-21 35,329 3,915 2,785 5.27 206,532 16,190 18,946 5.88 2021-22 42,654 4,110 2,589 6.37 235,926 16,985 18,149 6.72 Source: City of Glendale Finance Department Notes: (1) Operating revenues and nonoperating revenues excluding non-cash contributions, gains and losses and opeb income/(loss). (2) Excluding depreciation. (3) Excise tax revenue amounts include state shared revenues. (4) Excise tax revenue bonds include the Municipal Property Corporation and the Western Loop 101 Public Facilities Corporation (FY 2009-10 to FY 2012-13). (5) Excluding reductions to principal by refunded bonds - 2011-12 Water & Sewer Revenue Bond $74,050 and Excise Tax Revenue Bonds $8,945; and 2012-13 Excise Tax Revenue Bonds $243,250. (6) Includes interest expense from refunding the Western Loop 101 Public Facilities Bonds in December 2012. 199 Schedule 15 City of Glendale, Arizona Demographic and Economical Statistics Last Ten Fiscal Years (amounts expressed in thousands) Fiscal City of Glendale Maricopa County Year Population(2) Population(6) Personal Income 2012-13 231 (5) 3,934 160,497,824 40,798 7.6 2013-14 233 (5) 3,945 167,439,604 42,443 6.6 2014-15 233 (5) 4,064 175,437,829 43,169 5.6 2015-16 227 4,153 185,111,698 44,573 5.6 2016-17 238 4,233 196,779,825 46,487 4.9 (8) 2017-18 240 (7) 4,316 209,719,687 48,591 4.3 (8) 2018-19 251 (9) 4,367 223,097,349 51,087 4.8 (8) 2019-20 254 (9) 4,437 245,077,753 55,235 10.2 (8) 2020-21 250 (10) 4,507 245,077,753 (3) 54,377 (3) 7.4 (8) 2021-22 252 (11) 4,507 245,077,753 (3) 54,377 (3) 3.5 (8) (3) (1) Per Capita Personal Unemployment Income(1)(4) Rate (5) 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) The previous fiscal year Maricopa County ACFR provides the most current number. (4) Calculation based on personal income divided by Maricopa County population. (5) Estimate provided by Arizona Department of Administration, Office of Employment and Population Statistics website for the prior fiscal year. (6) Maricopa County population extracted from Maricopa County ACFR statistical section. (7) Estimate from the Arizona Office of Economic Opportunity website, Arizona population estimates, for the fiscal year as of July 1. (8) Unemployment rate from the Arizona Office of Economic Opportunity website, LAUS data. (9) Estimate from the City of Glendale Annual Budget Book for the following fiscal year. (10) US Census Bureau - American FactFinder - Annual Population Estimate as of July 1, 2021. (11) Projected population number provided by City of Glendale Budget Department. 200 % Schedule 16 City of Glendale, Arizona Principal Employers Current Year and Nine Years Ago 2013 2022 Employer Employees Rank Percentage of Total City Employment Employees Rank Percentage of Total City Employment Luke Air Force Base 6,900 1 5.36 % 6,325 1 5.41 % Banner Thunderbird Health System 3,200 2 2.49 2,866 2 2.45 Arrowhead Towne Center 2,650 3 2.06 Westgate 2,000 4 1.55 Deer Valley Unified School District 1,747 5 1.36 1,432 8 1.22 Glendale Community College 1,745 6 1.36 2,000 5 1.71 City of Glendale 1,709 7 1.33 1,725 6 1.47 Glendale Union High School District 1,693 8 1.32 2,008 4 1.72 Tanger Outlets 1,562 9 1.21 Glendale Elementary School District 1,514 10 1.18 1,684 7 1.44 Walmart 2,175 3 1.86 CSAA/AAA 1,325 9 1.13 959 10 0.82 Arrowhead Community Hospital Total 24,720 19.22 % 22,499 Source: City of Glendale Economic Development Department Department of Economic Security, Research Administration City of Glendale Human Resources Department Arizona Department of Administration, Office of Employment and Population Statistics 201 19.23 % Schedule 17 City of Glendale, Arizona Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Function/Program 2022 2021 (1) 2020 Full-Time Equivalent Employees as of June 30 2019 2018 2017 2016 2015 2014 2013 General government Management services Finance Planning Building Legal Other Police Fire Community service Parks and recreation Library Public works Engineering Transportation Utilities Total 31.00 57.00 9.00 28.00 69.00 67.00 536.00 286.00 69.00 58.00 32.00 157.00 33.00 88.00 189.00 1,709.00 31.00 62.00 12.00 25.00 70.00 69.00 549.00 287.00 65.00 55.00 36.00 164.00 32.00 80.00 189.00 1,726.00 26.00 61.00 11.00 22.00 75.00 71.00 563.00 283.00 68.00 53.00 36.00 168.00 31.00 85.00 199.00 1,752.00 22.00 56.00 10.00 24.00 71.00 72.00 551.00 278.00 59.00 51.00 37.00 156.00 29.00 77.00 195.00 1,688.00 24.00 56.00 11.00 22.00 69.00 66.00 517.00 259.00 57.00 58.00 31.00 180.00 19.00 56.00 185.00 1,610.00 31.00 49.00 10.00 21.00 69.00 63.00 534.00 253.00 48.00 59.00 32.00 173.00 17.00 57.00 176.00 1,592.00 34.00 54.00 13.00 21.00 67.00 73.00 505.00 260.00 56.00 75.00 32.00 165.00 18.00 60.00 172.00 1,605.00 27.00 57.00 12.00 24.00 73.00 70.00 529.00 276.00 53.00 68.00 35.00 188.00 26.00 60.00 185.00 1,683.00 29.00 55.00 14.00 22.00 71.00 68.00 530.00 282.00 54.00 73.00 35.00 183.00 24.00 59.00 186.00 1,685.00 28.00 53.00 13.00 22.00 67.00 68.00 522.00 262.00 55.00 66.00 34.00 184.00 18.00 57.00 184.00 1,633.00 Sources: City of Glendale Human Resources Department and Munis HCM system Note: (1) Employee data obtained from the City of Glendale Human Resources Department and Munis HCM system as of September 1, 2022. 202 Schedule 18 City of Glendale, Arizona Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program Police Calls for service Bookings Criminal offense reports Fire EMS calls Fire calls Water (4) Number of billed accounts Water produced (million gallons) Sewer (4) Number of billed accounts Treated influent (million gallons) Refuse collection (5) Residential curb service (tons per year) Commercial container service (tons per year) Airport Departures/arrivals (1) General government Building permits Library Volumes in collection (2) Transit Dial-A-Ride passengers Fiscal Year 2017 2022 2021 2020 2019 2018 2016 2015 2014 2013 175,604 6,907 30,660 181,576 4,753 28,856 179,469 6,310 29,306 185,857 10,056 35,867 192,877 11,037 30,146 (3) 187,645 9,030 30,146 190,074 8,445 32,732 174,535 17,871 31,873 146,538 18,939 31,481 127,333 8,588 34,995 38,747 6,091 34,851 5,827 36,695 3,948 35,939 3,395 35,482 3,661 31,502 3,093 34,518 3,371 32,250 3,467 30,262 3,461 30,082 3,478 64,088 13,569 63,109 14,787 62,440 13,398 62,105 12,826 61,463 13,755 61,270 13,672 60,921 13,864 60,679 12,057 60,436 13,768 60,062 13,667 59,314 6,300 58,710 5,983 58,114 6,295 57,804 6,025 57,206 6,045 57,037 6,289 56,700 6,229 56,491 6,117 56,313 6,244 55,980 6,065 56,965 39,579 53,563 38,650 52,903 40,114 49,479 40,791 46,338 39,744 48,346 41,026 48,971 46,086 48,993 45,693 45,942 41,879 46,833 40,272 90,721 83,452 90,953 89,614 86,187 75,561 78,977 74,217 70,679 76,390 9,764 8,844 7,171 6,217 5,804 6,234 5,488 5,449 4,799 6,383 517,174 504,461 499,106 494,325 498,092 514,197 568,653 528,835 408,516 415,695 38,270 43,670 47,273 66,174 69,934 71,912 74,256 77,318 78,271 85,798 Source: Various city departments and FAA ATADS report Note: Water and sewer statistics are contained in Schedule 20 and 21. (1) Departures/arrivals are based on fiscal year. (2) Includes all formats: books, magazines, CD's, DVD's and electronic/downloadable collection. (3) FY2018 criminal offense reports figure same as FY2017 due to PD rebuilding data views. (4) Water and sewer numbers updated to exclude duplicate account number. (5) Refuse collection excludes bulk and Phoenix reciprocal trash. 203 Schedule 19 City of Glendale, Arizona Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function/Program Police Stations Patrol vehicles Fire stations General government City square miles Water Treatment capacity (millions gallons per day) Storage capacity (millions gallons) Miles of water mains Sewer Treatment capacity (millions gallons per day) Miles of sewer lines Landfill Landfill capacity - south cell Landfill capacity used - south cell Other public works Streets (miles) Parks and recreation Number of parks/retention basins/facilities Acres of parks Transit Dial-A-Ride minibuses 2022 2021 2020 2019 Fiscal Year 2018 2017 2016 2015 2014 2013 3 210 9 3 212 9 3 218 9 3 217 9 3 194 9 3 183 9 3 193 9 3 178 9 3 176 9 3 139 9 62 62 62 60 60 60 60 59 59 59 97.1 67 1,006 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 104.1 67 994 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 29.2 707 24,607 23,019 24,607 22,468 24,638 21,976 24,215 21,436 24,234 20,983 24,215 20,575 24,215 20,137 22,429 19,687 21,493 19,220 21,218 18,849 757 748 748 748 748 748 718 718 718 718 110 2,189 110 2,189 102 2,192 102 2,192 102 2,192 102 2,192 101 2,192 100 2,189 100 2,189 100 2,189 20 21 21 21 22 22 20 22 20 21 Source: Various city departments Note: Landfill capacity in thousands 204 Schedule 20 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2022 WATER RATES PER METER SIZE Commercial and Residential Monthly Base Charge Inside Outside City City Meter Size (inch) 12.20 15.60 22.20 43.90 78.40 133.00 235.00 466.00 760.00 1,195.00 1,701.00 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12" 15.86 20.28 28.86 57.07 101.92 172.90 305.50 605.80 988.00 1,553.50 2,211.30 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 Summer Excess Rate Inside Outside City City 0 - 6,000 6,001 - 15,000 15,001 - 30,000 over 30,000 $ 2.83 3.54 4.95 6.89 $ 3.04 3.04 3.04 3.04 $ 3.84 3.84 3.84 3.84 $3.68 4.61 6.44 8.96 $ 3.96 3.96 3.96 3.96 SEWER SERVICE RATES Type of Service Inside City Single Family Dwelling Unit Office Building Apartment - Average 5 units Apartment - Average 35 units Retail/Wholesale 40.68 80.12 96.68 680.65 78.86 (1) Per 1,000 gallons SOURCE: City of Glendale Finance 205 Outside City 30.28 1,883.02 77.37 146.35 N/A $ 5.00 5.00 5.00 5.00 City of Glendale, Arizona Miscellaneous Water and Sewer Statistics June 30, 2022 Schedule 21 HISTORICAL AVERAGE NUMBER OF WATER CONNECTIONS (1) Fiscal Year Ending June 30 2013 (2) 2014 (2)(3) 2015 (2) 2016 (2) 2017 (2) 2018 2019 2020 2021 2022 Residential 54,056 53,914 54,126 54,266 54,448 54,686 54,881 55,161 55,646 56,807 Multi-Family 1,680 1,799 1,800 1,800 1,799 1,790 1,790 1,790 1,789 1,789 Commercial 4,296 4,264 4,379 4,492 4,632 4,390 4,425 4,450 4,514 4,593 Sprinkler 1,669 1,819 1,862 1,885 1,910 1,863 1,955 1,974 2,025 2,076 Total 61,701 61,796 62,167 62,443 62,789 62,729 63,051 63,375 63,974 65,265 (1) In comparison to the number of billed accounts, total connections includes inactive "vacant" properties. (2) As of October following the fiscal year ended. (3) Review determined 269 residential connections should be classified as multi-family or sprinklers. Source: City of Glendale Water Services Department WATER DELIVERIES Acre Feet Calendar Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential (1) 27,695 26,921 26,946 26,595 27,193 27,150 27,303 26,251 27,867 26,149 Commercial 8,630 8,221 8,176 8,704 8,748 8,834 9,257 8,793 8,954 8,965 Other (2) 2,647 3,050 2,467 2,092 2,743 2,365 1,891 2,405 2,436 2,237 (1) Residential includes both Single and Multi-family deliveries. (2) Other include unbilled water and recovered effluent groundwater. Source: Annual report to Arizona Department of Water Resources 206 Sprinkler 2,648 2,413 2,411 2,327 2,581 2,564 2,536 1,691 2,913 2,835 Total 41,620 40,605 40,000 39,718 41,265 40,913 40,987 39,140 42,170 40,186 SEWERAGE CONNECTIONS BILLED AND SEWAGE TREATED Fiscal Year Ending June 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 No. of Connections 57,300 57,385 57,588 57,758 57,953 58,155 58,454 58,764 59,305 60,532 91st Ave WWTP (2) (MGD) Actual 7.3 8.4 6.9 7.5 7.4 6.7 7.0 6.6 9.0 7.4 Arrowhead WRF (MGD) 2.5 2.7 2.7 2.7 2.7 2.6 2.7 2.6 2.6 2.7 West Area WRF (MGD) 5.8 6.0 7.2 6.9 7.2 7.2 7.0 8.0 4.8 7.1 Total Treated 15.6 17.1 16.8 17.1 17.3 16.5 16.7 17.2 16.4 17.2 (1) In comparison to the number of billed accounts, total connections includes inactive "vacant" properties. (2) The 91st Avenue Wastewater Treatment Plant is a regional plant servicing five cities. Previously listed as "Multi-City Plant" (SROG) SOURCE: City of Glendale Water Services Department 207 This page left blank intentionally. City of Glendale Finance Division 5850 West Glendale Avenue, Suite 302 Glendale, Arizona 85301 (623) 930-2480