City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Prepared by the: Budget and Finance Department City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT INTRODUCTORY SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2023 City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Mayor Jerry Weiers Councilmembers Joyce Clark - Vice Mayor, Yucca District Bart Turner - Barrel District Ian Hugh, Cactus District Lauren Tolmachoff - Cholla District Jamie Aldama - Ocotillo District Ray Malnar - Sahuaro 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 City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Title Page. . . . . . . . . . . . . . . . . . . . . . . . . i Table of Contents . . . . . . . . . . . . . . . . . . . . . . iii Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . 1 GFOA Certificate of Achievement . . . . . . . . . . . . . . . . . 5 Glendale, Arizona and Neighboring Communities . . . . . . . . . . . . . 6 Glendale City Officials . . . . . . . . . . . . . . . . . . . . . 7 Glendale Council District Boundaries . . . . . . . . . . . . . . . . 8 Organization Chart . . . . . . . . . . . . . . . . . . . . . . 9 II. FINANCIAL SECTION Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . 13 A. MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) . . . . . . . . 19 . . . . . . . . . . . . . . 33 34 Balance Sheet – Governmental Funds . . . . . . . . . . . . . . Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position . . . . . . . . . . . . . . . . . . . . . Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds . . . . . . . . . . . . . . . . . . Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . Statement of Net Position – Proprietary Funds . . . . . . . . . . . . Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds . Statement of Cash Flows – Proprietary Funds . . . . . . . . . . . . . . 35 . . 36 . . 37 . . . . . . . . 38 39 40 41 . . 42 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position. Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . Fund Financial Statements: Notes to the Financial Statements . . . . . . . . . . . . . . . . C. REQUIRED SUPPLEMENTARY INFORMATION Schedule of Net Pension/OPEB (Asset)/Liability. . . . . . . . . . . . . 104 Schedule of OPEB Liability – City Plan . . . . . . . . . . . Schedule of Pension/OPEB Contributions . . . . . . . . . . Notes to Pension/OPEB Liability and Contributions . . . . . . . Budgetary Comparison Schedule – General Fund . . . . . . . . Budgetary Comparison Schedule – Transportation Special Revenue Fund Notes to Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 116 120 122 124 125 D. COMBINING STATEMENTS AND SCHEDULES Budgetary Comparison Schedule – Other Special Revenue Fund . . . . . . . . . 129 Budgetary Comparison Schedule – Municipal Property Corporation Debt Service Fund . . 130 Non-Major Governmental Funds Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . 131 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . 139 Budgetary Comparison Schedules Police and Fire Sales Tax Fund . . . . . Community Development Block Grants Fund . Highway Users Gas Tax Fund. . . . . . Other Special Revenue Fund . . . . . . General Obligation Debt Service Fund . . . Highway User Debt Service Fund . . . . Transportation Debt Service Fund . . . . Excise Tax Revenue Debt Service Fund . . Certificates of Participation Debt Service Fund Streets Construction Fund . . . . . . . Fire and Police Construction Fund . . . . Parks Bond Construction Fund . . . . . Development Impact Fees Fund . . . . . Cemetery Perpetual Care Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Non-Major Proprietary Funds – Business-Type Activities Combining Statement of Net Position . . . . . . . . . . . . . . Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Combining Statement of Cash Flows . . . . . . . . . . . . . . Budgetary Comparison Schedules Water and Sewer Fund . . . . . . . . . . . . . . . . . . Landfill Fund . . . . . . . . . . . . . . . . . . . . . Solid Waste Fund . . . . . . . . . . . . . . . . . . . Housing Fund . . . . . . . . . . . . . . . . . . . . . . . . 159 . . . 160 . . . 161 . . . 162 . . . 164 . . . 166 . . . 167 Internal Service Funds Combining Statement of Net Position . . . . . . . . . . . . . . Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Combining Statement of Cash Flows . . . . . . . . . . . . . . Budgetary Comparison Schedules Risk Management Fund. . . . . . . . . . . . . . . . . . Employee Benefits Fund . . . . . . . . . . . . . . . . . Workers Compensation Fund . . . . . . . . . . . . . . . . Fleet Services Fund . . . . . . . . . . . . . . . . . . . Technology Fund. . . . . . . . . . . . . . . . . . . . . . . 172 . . . 173 . . . 174 . . . . . . . . . . . . . . . 175 176 177 178 179 . . . 183 E. SUPPLEMENTARY INFORMATION Federal Financial Data Schedule . . . . . . . . . . . . . . . III. STATISTICAL SECTION Page Schedule Net Position by Component ............................................................................................... 1 Changes in Net Position ..................................................................................................... 2 Fund Balances – Governmental Funds ............................................................................... 3 Changes in Fund Balances – Governmental Funds ............................................................ 4 Assessed and Estimated Actual Value of Taxable Property............................................... 5 Direct and Overlapping Governments Property Tax Rates ................................................ 6 Principal Property Taxpayers ............................................................................................. 7 Property Tax Levies and Collections ................................................................................. 8 City Transaction Privilege Taxes (Sales Tax) by Category................................................ 9 Ratio of Outstanding Debt by Type.................................................................................. 10 Ratios of Net General Bonded Debt Outstanding............................................................. 11 Net Direct and Overlapping Governmental Activities Debt............................................. 12 Legal Debt Margin Information ....................................................................................... 13 Pledged-Revenue Coverage ............................................................................................. 14 Demographic and Economical Statistics .......................................................................... 15 Principal Employers ......................................................................................................... 16 Full-Time Equivalent City Government Employees by Function/Program ..................... 17 Operating Indicators by Function/Program ...................................................................... 18 Capital Asset Statistics by Function/Program .................................................................. 19 Miscellaneous Water and Sewer Rate Statistics ............................................................... 20 Miscellaneous Water and Sewer Statistics ....................................................................... 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 196 198 200 202 203 204 205 206 208 210 211 212 214 216 217 218 219 220 221 222 March 31, 2024 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, 2023. 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 19. 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, 2023, 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 FY22-23 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 12.2% 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 5.2% compared to last fiscal year. 2 Workforce and Unemployment Glendale’s unemployment rate for the month of June 2023 was 4.1% which is slightly lower than the statewide unemployment rate of 4.2%. Glendale’s workforce is concentrated in the following nonfarm sectors: health care services (14.76%), government and social advocacy services (16.69%), retail (14.71%), consumer services (12.38%), education (10.28%), construction (7.26%), finance, insurance and real estate (5.17%), business services (6.39%), and transportation and distribution (3.82%). The unemployment rate was as low as 3.3% in fiscal year 2023. Arizona’s nonfarm employment increased 2.3% over the last year. Economic Development Business attraction, business retention & expansion, redevelopment, small business support, arts and culture, special events and tourism comprise the vital components to Glendale’s overall economic development program. Economic development efforts have been focused on the fast-growing 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, PUMA, and William-Sonoma Inc. Additionally, Glendale has seen the expansion of several facilities in this area, including the Red Bull Lagerhaus facility that continues to add more job opportunities in the area. The capital investments from these major corporations continue to contribute 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 is now home to the state’s first Chicken N Pickle, a concept that brings elevated food offerings paired with the popular game of pickle ball. This facility has already hosted major tournaments in this popular sport. Also under construction is the 2-story Thirsty Lion, directly adjacent to the Glendale Renaissance Hotel and Spa that recently underwent renovations. 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 of Volvo, Land Rover and Jaguar, Arrowhead Porsche announced a new dealership will be coming to 83rd Avenue and Bell Road. Phoenix Children’s Hospital officially opened their Arrowhead campus that offers inpatient care, an emergency department, an outpatient surgery center, and a multi-specialty clinic. The $134.7 million investment brought additional jobs and much needed pediatric services to the West Valley. In Downtown Glendale, City Council approved the $89.7 million Downtown Campus Reinvestment Project (DCRP). The project calls for a full renovation of City Hall and the surrounding areas. In conjunction, the Economic Development team restructured to provide a Deputy Director that oversees Downtown Development. This deputy leads development and redevelopment activities in Downtown Glendale. A significant portion of the role is 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. With the announcement of the DCRP, Downtown Glendale has experienced significant interest from the development community. One notable project, the redevelopment of the former Gaslight Inn property, saw this former bed and breakfast converted into a mixed-use space that includes residential lofts, a brewery, and will soon be home to the West Valley’s first Cornish Pasty restaurant. Additionally, the city will be welcoming a brand-new 120-room hotel to Downtown Glendale, adjacent to the Glendale Civic Center. Arts and culture and special events 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 over 3,000 people in 3 attendance. Special Events and the Arts and Culture divisions held the first annual Downtown Glendale Arts and Culture Fest, that featured one of the most pronounced schedules of immersive art performances, cultural performers, and arts experiences in a single day in the West Valley. Performers and creatives from all over Arizona participated in the event that attracted over 8,000 attendees. 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 $73.5 million in fiscal year 2023. This increase is primarily due to $25.4 million in taxes and special assesment revenue, $27.2 million in charges for services and $17.4 million of intergovernmental revenue 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, 2022. This was the thirty-fifth 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, 2022. This was the thirty-sixth 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 5 6 7 8 9 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT FINANCIAL SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2023 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, 2023, 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, 2023, 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 Matters – Changes in Accounting Principle As discussed in Note XVII to the financial statements, the City restated beginning net position for the correction of the amortization method used for bond premiums/discounts. Our opinions are not modified with respect to this matter. Emphasis of Matters – Implementation of a New Accounting Standard As discussed in Note XXI to the financial statements, effective July 1, 2022, the City adopted new accounting guidance for subscription-based information technology arrangements. The guidance requires governments to recognize a right-to-use subscription asset and corresponding subscription liability. 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 (asset)/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 fund 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 29, 2024, 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 29, 2024 14 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS (Required Supplementary Information) FOR THE FISCAL YEAR ENDED JUNE 30, 2023 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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, 2023. 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 33, and the accompanying notes to the financial statements. Significant Financial Highlights The financial statements illustrate the following significant financial highlights for FY 2022-23:  The City’s total net position changed by $179,101 or 15.4%. The governmental net position changed by $157,216 or 24.2%, and the business-type net position changed by $21,885 or 4.3%.  The City’s total revenues changed by $66,364 or 9.7%. Program revenues in the form of charges for services, grants, and contributions changed by $5,795 or 1.8%. General revenues changed by $60,569 or 16.7%.  Program revenues from governmental activities changed by $58. Program revenues for business-type activities changed by $5,737 or 3.5%.  Operating grants and contributions from governmental activities changed by $(10,006) or (12.7)%.  Capital grants and contributions from governmental activities changed by $(1,613) or (4.6)%.  General revenues from governmental activities changed by $66,651 or 19.0%. The primary reason for this is a change of $30,380 or 12.2% in sales tax revenues and a change of $14,575 or 44.5% in state shared income tax. 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 changed by $66,404 or 13.2%. The increase in program costs is primarily due to an increases in general government and public safety.  The General Fund, a major governmental fund, collected $405,168 in revenues which is a change of $80,618 or 24.8% from the prior year. This increase was primarily due to an increase in taxes, licenses and permits, and intergovernmental revenues. The total expenditures of the General Fund were $282,038 which is a change of $(187,580) or (39.9)%. 19 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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 33, 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 34, 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 35, 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. 20 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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 $1,342,300 as of June 30, 2023. 21 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) 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. 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 changed by $23,586 or (17.3)% 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 2023 and 2022: City of Glendale, Arizona Condensed Statement of Net Position As of June 30, 2023 and 2022 (in thousands) Current and other assets Capital Assets: Non-depreciable Depreciable (net) Lease receivable Non-current OPEB assets Equity in joint venture Total assets Governmental Activities Business-type Activites 2023 2022* 2023 2022* $ 752,063 $ 610,672 $ 122,200 $ 128,310 $ Total 2023 2022* 874,263 $ 738,982 143,657 967,483 48,196 5,524 2,354 1,919,277 127,283 944,314 48,839 6,321 2,580 1,740,009 45,137 611,102 2,014 1,124 37,595 819,172 43,377 598,157 2,138 983 38,873 811,838 188,794 1,578,585 50,210 6,648 39,949 2,738,449 170,660 1,542,471 50,977 7,304 41,453 2,551,847 85,218 321,728 7,780 10,556 92,998 332,284 Current liabilities Noncurrent liabilites Total liabilities 138,786 1,000,073 1,138,859 114,374 1,176,633 1,291,007 43,598 241,635 285,233 38,839 255,470 294,309 182,384 1,241,708 1,424,092 153,213 1,432,103 1,585,316 Deferred Inflows of Resources 59,333 121,643 5,722 13,973 65,055 135,616 584,359 334,618 (112,674) 806,303 $ 488,913 296,434 (136,260) 649,087 $ 485,518 47,567 2,912 535,997 $ Deferred Outflows of Resources Net position: Net investment in capital assets Restricted Unrestricted Total net position $ Note - * Net position has been restated. See Note XVII. 22 439,039 1,069,877 927,952 45,051 382,185 341,485 30,022 (109,762) (106,238) 514,112 $ 1,342,300 $ 1,163,199 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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, 2023 and 2022 (in thousands) Governmental Activities 2023 2022* Revenues: Program revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program revenues General revenues: Property taxes Sales taxes State shared sales tax Urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings (losses), unrestricted Miscellaneous Total revenues 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, as restated Net position - ending $ Business-type Activites 2023 2022* Total Primary Government 2023 2022* 54,625 $ 42,948 $ 68,923 78,929 33,139 34,752 156,687 156,629 153,477 $ 143,071 $ 13,268 11,140 4,067 10,864 170,812 165,075 208,102 $ 82,191 37,206 327,499 186,019 90,069 45,616 321,704 28,170 279,831 36,901 47,355 12,384 11,427 2,018 574,773 3,087 1,673 175,572 28,170 279,831 36,901 47,355 12,384 14,514 3,691 750,345 26,885 249,451 35,086 32,780 11,815 (8,492) 14,752 683,981 26,885 249,451 35,086 32,780 11,815 (8,777) 4,195 508,064 67,766 26,904 173,375 157,622 42,500 33,267 47,954 64,057 57,884 70,250 25,766 12,860 415,245 364,960 159,528 143,104 (2,312) (3,445) 157,216 139,659 649,087 509,428 $ 806,303 $ 649,087 $ 285 10,557 175,917 106,533 92,854 11,620 11,189 21,200 20,702 16,646 15,135 155,999 139,880 19,573 36,037 2,312 3,445 21,885 39,482 514,112 474,630 535,997 $ 514,112 $ Note - * Unamortized premiums and discounts on debt issuance and net position have been restated. See Note XVII. 23 67,766 26,904 173,375 157,622 42,500 33,267 47,954 64,057 57,884 70,250 25,766 12,860 106,533 92,854 11,620 11,189 21,200 20,702 16,646 15,135 571,244 504,840 179,101 179,141 179,101 179,141 1,163,199 984,058 1,342,300 $ 1,163,199 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) Changes in Net Position The net position of the governmental activities changed by $157,216 from $649,087 to $806,303 and business-type activities’ net position changed by $21,885 from $514,112 to $535,997. Revenues and Expenses The chart below shows the performance of the revenues in the governmental activities versus expenses: The City’s general revenues from governmental activities for the fiscal year ended June 30, 2023 changed by $66,651 or 19.0%. The increase in revenues is due an increase of $30,380 in local sales tax and $14,575 in state shared income tax. The increases to tax revenue reflect the continuing economic growth the City and State of Arizona have experienced over the past several years. 24 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) The cost of programs and services for governmental activities changed by $50,285 or 13.8%. The increase is primarily due to increases in general government of $40,862 and public safety of $15,753. The chart below shows the performance of the expenses and revenues in the business-type activities: The City’s total revenues from business-type activities for the fiscal year ended June 30, 2023 changed by $(345) or (0.2)%. The cost of programs and services from business-type activities for the fiscal year ended June 30, 2023 changed by $16,119 or 11.5%. Solid waste expenses changed by $498 or 2.4%, water and sewer expenses changed by $13,679 or 14.7% and landfill expenses changed by $431 or 3.9%. The increase in cost of programs and services for business-type activities is mainly contributable to increased maintenance costs. 25 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) City Revenue Categories The pie chart above shows the different types of revenue the City receives and the proportion of each. The majority (65.0%) 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 (15.9%). City Expense Categories The majority of the City’s expenses (49.1%) are incurred in public safety 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. 26 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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 $510,277, a change of $101,236 or 24.7% in comparison with the prior year. The City presents fund balance components by five categories: non-spendable, restricted, committed, assigned and unassigned; Note I.K in the summary of significant accounting policies addresses this in greater detail. In fiscal year 2023 and 2022, $96,886 and $54,905 respectively, of the total fund balance constituted unassigned fund balance. Revenues for governmental functions overall totaled $561,728 in fiscal year 2023, a change of $79,866 or 16.6 % of the previous years’ total of $481,862. The increase is primarily due to an increase of $31,408 or 11.3% in taxes and special assessments revenue, an increase in charges for services of $25,104 or 213.6% and an increase in investment income of $18,991 or 217.5%. These revenues are all indicators of the continued healthy economy experienced by the City. Expenditures for governmental functions totaled $458,582 in fiscal year 2023, a change of $(187,204) or (29.0)% from the previous year total of $645,786. The decrease is primarily due to a $251,320 payment in FY 2022 to Public Safety Personnel Retirement System to reduce an unfunded liability paid from the issuance of Certificates of Participation. The General Fund is the main operating fund of the City. The General Fund balance changed by $73,263 or 36.8%. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $96,886 while total fund balance was $272,126. The General Fund has $962 of its fund balance as non-spendable; $23,477 as restricted; and $150,801 assigned. Per the City’s adopted financial policies, 10% of the general fund operating revenue $40,517 has been earmarked as the Budget Stabilization Reserve and $56,369 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, 2023 to commit these funds; therefore, the funds are reported as unassigned. Overall, the General Fund’s performance resulted in revenues over expenditures of $123,130 in fiscal year 2023. In the prior year, expenditures exceeded revenues by $145,068. The excess of revenues decreased when compared to the prior year due to the $251,320 payment made to Public Safety Personnel Retirement System in FY 2022. In addition, revenues increased by $80,618 over the prior fiscal year. The increase is primarily due to an increase in taxes and special assessment revenue of $25,421 or 11.9%, an increase in charges for services of $27,286 or 429.4%, and an increase in intergovernmental revenue of $17,477 or 21.0%. 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 $113,502 at the end of the fiscal year, an increase of $19,989 from the previous fiscal year. The increase in fund balance was primarily due to the increase in taxes and special assessment revenue of $5,160 or 12.1%, and increase in investment income of $3,690 or 943.7%, and an increase in intergovernmental revenue of $1,870 or 106.9% including developer agreements in lieu of fees. 27 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) The Other Construction Fund accounts for construction activities for governmental facilities, economic development, cultural facilites, open space and trails, library, flood control and ARPA projects. The fund had a balance of $6,054 at the end of the fiscal year a decrease from $9,366 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 $14,197 at the end of the fiscal year an increase of $5,154 from the previous fiscal year. The increase was primarily due to the intergovernmental revenue from Arizona Sports and Tourism Authority of $4,947. Other Non-Major Governmental Funds had a balance increased $6,142 to $104,398 at the end of the fiscal year. This is primarily due to net transfers in and out. Proprietary Funds Net position of the enterprise funds increased $21,885 or 4.3 %. The enterprise funds’ total net position was $47,567 restricted, $2,912 unrestricted, and $485,518 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 a change in net position of $11,283 or 2.3% for the fiscal year ended June 30, 2023. The landfill fund net position changed by $2,926 of 23.6% 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 $18,517 for the fiscal year ended June 30, 2023. 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 $49,890 higher than the final budgeted amounts. Positive economic trends resulted in taxes and charges for services that were $27,953 and $21,358 greater than the final budget, respectively.  General Fund expenditures were lower than the final budget by $44,683. The most significant budget variances was in capital outlay which was $26,308 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 $76,987 or 41.0%. 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/amortization) as of June 30, 2023, for its governmental activities was $1,111,140 and for the business-type activities was $656,239. The investment in governmental and business-type capital assets consisted of land, buildings, machinery and equipment, right-to-use assets, and infrastructure for streets, parks, airport and street lighting, water, and wastewater treatment plants. 28 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (amounts expressed in thousands) Major capital asset projects capitalized during the current fiscal year included the following:       West Area Water Reclamation Facility Improvements $18,349 Luke AFB Wastewater Connection and Lift Station $5,171 Cactus Road 59th Ave to 67th Ave Street Reconstruction $3,848 Landfill North Cell Excavation $3,815 Glendale Ave 99th to 91st Sewer Relief $2,439 Splash Pad in Sunset Palms Park $1,879 The following table is a summary of capital assets reflected in the June 30, 2023 financial statements as compared to last year’s financial statements. Capital Assets at Year End (Net of depreciation/amortization) (in thousands) Governmental Activities 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 Right to use IT software Automotive equipment Total $ $ 2023 24,929 116,019 2,709 207,631 166 87,630 510,670 42,524 64,927 11,227 7,772 1,348 1,536 16,505 15,547 1,111,140 Total Primary Government Business-type Activites 2022 $ $ 8,625 116,019 2,639 212,378 265 94,105 497,891 41,127 64,891 10,270 6,905 178 1,661 14,643 1,071,597 $ $ 2023 27,896 17,241 6,150 5,145 49,335 91,219 84,546 219,448 107,876 17,839 4,694 2,827 820 111 1,727 19,365 656,239 $ $ 2022 26,136 17,241 6,329 5,062 49,047 93,629 81,707 232,407 89,472 17,766 4,121 2,139 449 111 15,918 641,534 $ $ 2023 52,825 133,260 6,150 2,709 212,776 166 136,965 510,670 42,524 64,927 11,227 91,219 84,546 219,448 107,876 17,839 4,694 10,599 2,168 111 1,536 18,232 34,912 1,767,379 $ $ 2022 34,761 133,260 6,329 2,639 217,440 265 143,152 497,891 41,127 64,891 10,270 93,629 81,707 232,407 89,472 17,766 4,121 9,044 627 111 1,661 30,561 1,713,131 The construction commitments at June 30, 2023 were $32,130. 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 $896,560 compared to $955,430 last year, a 6.16% net decrease. Governmental Activities General obligation Transportation revenue bond Excise tax revenue bonds Municipal Property revenue bonds Certificates of Participation Water and sewer revenue bonds/obligations GO Landfill bonds Total $ $ 2023 98,535 50,235 161,880 $ Total Primary Goverment Business-type Activites 2022 116,405 54,545 175,450 2023 $ 2022 - $ - $ 2023 98,535 50,235 161,880 $ 2022 116,405 54,545 175,450 175,300 252,800 179,555 252,800 - - 175,300 252,800 179,555 252,800 738,750 778,755 149,165 8,645 157,810 167,760 8,915 176,675 149,165 8,645 896,560 167,760 8,915 955,430 $ 29 $ $ $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2023 (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 “A1” 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, 2023, were $190,435 and $593,642, 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 2023-24 budget is $1,260,000 an increase of 17.7% from 2022-23. The increase is mainly attributable to an increase in capital outlay. Overall, the goal of the FY23-24 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 2023-24 are projected at $990,114. The major sources of revenue for the City continue to be sales tax, property taxes, and state shared revenues with projected revenues of $174,019, $6,553, and $115,124 respectively. For fiscal year 2023-24, City sales tax is expected to increase by 8.3%. 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. 30 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 City of Glendale, Arizona Statement of Net Position June 30, 2023 (amounts expressed in thousands) Governmental Activities 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 Amounts related to pensions and OPEB 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 Amounts related to pensions and OPEB Amounts resulting from refunded debt 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 $ 621,446 Primary Government Business-type Activities $ 13,325 Total $ 634,771 771 16,115 37,981 324 41,401 (4,158) 415 1,575 36,193 48,196 143,657 967,483 5,524 2,354 1,919,277 19,226 14 245 4,158 5,240 8,382 71,610 2,014 45,137 611,102 1,124 37,595 819,172 771 35,341 37,981 338 41,646 5,655 9,957 107,803 50,210 188,794 1,578,585 6,648 39,949 2,738,449 73,030 12,188 85,218 5,723 2,057 7,780 78,753 14,245 92,998 22,425 148 40,005 14,934 508 4,813 55,953 11,828 1,158 18,865 3,979 395 7,362 11 34,253 1,306 58,870 18,913 903 12,175 55,964 96,434 903,639 1,138,859 25,922 215,713 285,233 122,356 1,119,352 1,424,092 12,060 (11) 47,284 59,333 1,966 1,768 1,988 5,722 14,026 1,757 49,272 65,055 584,359 485,518 1,069,877 60,905 95,914 113,507 24,138 6,496 23,476 5,524 4,658 (112,674) 806,303 $ 18,595 11,899 1,124 15,949 2,912 535,997 60,905 114,509 113,507 24,138 11,899 6,496 23,476 6,648 4,658 15,949 (109,762) 1,342,300 The notes to financial statements are an integral part of this statement. 33 $ City of Glendale, Arizona Statement of Activities For the Year Ended June 30, 2023 (amounts expressed in thousands) Program Revenues Functions/Programs 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 Expenses $ $ 67,766 173,375 42,500 47,954 57,884 25,766 415,245 106,533 11,620 21,200 16,646 155,999 571,244 Operating Grants and Contributions Charges for Services $ $ Net (Expense) Revenue and Changes in Net Position Primary Government Capital Grants and Contributions Governmental Activities Business-type Activities Total 37,663 $ 4,730 4,315 6,181 1,736 54,625 9,301 $ 9,236 2,250 17,952 30,184 68,923 4,085 $ 317 28,737 33,139 (16,717) $ (159,409) (35,618) (23,821) 2,773 (25,766) (258,558) 111,703 13,266 25,510 2,998 153,477 208,102 19 13,249 13,268 82,191 $ 3,375 692 4,067 37,206 (258,558) 8,564 1,646 4,310 293 14,813 14,813 8,564 1,646 4,310 293 14,813 (243,745) 6,274 21,896 279,831 36,901 47,355 12,384 11,427 2,018 (2,312) 415,774 157,216 649,087 806,303 $ 3,087 1,673 2,312 7,072 21,885 514,112 535,997 $ 6,274 21,896 279,831 36,901 47,355 12,384 14,514 3,691 422,846 179,101 1,163,199 1,342,300 $ 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, as restated Net position - ending $ The notes to financial statements are an integral part of this statement. 34 - $ - (16,717) (159,409) (35,618) (23,821) 2,773 (25,766) (258,558) City of Glendale, Arizona Balance Sheet Governmental Funds June 30, 2023 (amounts expressed in thousands) Transportation Special Revenue General 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 LIABILITES Vouchers payable Retainage payable Compensated Absences - current Intergovernmental payable Due to other funds Deposits Unearned revenue Matured interest payable Matured bonds payable Total liabilities $ 249,087 $ 170 9,259 313 2,372 34,592 142 15 42,887 338,837 $ 12,214 148 1,491 508 4,746 3,974 23,081 $ 114,348 $ 569 844 171 115,932 $ 2,378 32 15 2,425 Municipal Property Corporation Debt Service Other Construction $ 36,206 $ 36,206 $ 348 46 29,758 30,152 $ 14,010 $ 37,981 8,889 60,880 $ 4,447 4,255 8,702 Other NonMajor Governmental Funds $ 140,092 $ 601 6,198 11 5,938 11 27,289 5,309 185,449 $ 4,382 61 2,317 67 22,206 10,359 35,750 75,142 Total $ 553,743 $ 771 16,026 37,981 324 2,372 41,374 324 36,193 48,196 737,304 $ 19,322 148 1,584 508 2,363 4,813 55,953 14,806 40,005 139,502 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue Deferred Inflows of Resources- leases Total deferred inflows of resources 1,563 42,067 43,630 5 5 - 37,981 37,981 692 5,217 5,909 40,241 47,284 87,525 FUND BALANCES Fund balance: Nonspendable Restricted Committed Assigned Unassigned Total fund balances 962 23,477 150,801 96,886 272,126 171 113,331 113,502 6,054 6,054 14,197 14,197 6,401 93,541 2,068 2,388 104,398 7,534 250,600 2,068 153,189 96,886 510,277 Total liabilities, deferred inflows of resources and fund balances $ 338,837 $ 115,932 The notes to financial statements are an integral part of this statement. 35 $ 36,206 $ 60,880 $ 185,449 $ 737,304 City of Glendale, Arizona Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2023 (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/amortization 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 Less accumulated amortization Right to use subscription based information technology arrangements used in governmental activities are not financial resources and therefore are not reported in the funds. Right to use assets Less accumulated amortization $ $ $ 510,277 2,104,551 (1,015,304) 1,089,247 364 (198) 166 13,557 (2,736) 10,821 Net OPEB asset 5,273 Adjustment to reflect the government joint venture 2,354 Deferred outflow of resouces related to pensions and OPEB 71,254 Deferred outflows related to refunded debt 12,188 Subscription interest payable (56) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds and shown as an internal balance item. (4,167) 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. 37,823 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 and OPEB liabilities Lease payable Subscription payable Developer payable obligations Compensated absences Unamortized premium on debt issuance $ (738,750) (148,427) (157) (11,012) (5,473) (28,301) (25,678) (957,798) Deferred inflows of resources related pensions and OPEB (11,331) 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 40,252 Net position of governmental activities $ 36 806,303 City of Glendale, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2023 (amounts expressed in thousands) Transportation Special Revenue General REVENUES Taxes and special assessments Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Total revenues $ 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 238,559 24,627 100,802 102 33,640 2,003 3,323 2,112 405,168 $ 47,814 3,620 1,965 4,081 195 57,675 Municipal Property Corporation Debt Service Other Construction $ 4,624 4,624 $ Other NonMajor Governmental Funds 4,974 186 5,160 $ 21,878 16,823 45,372 9 1,253 324 2,670 772 89,101 Total Governmental Funds $ 308,251 41,450 159,392 111 36,858 2,327 10,260 3,079 561,728 48,930 166,504 24,998 22,992 1,065 27,631 492 25 63 - 6 - 972 4,944 1,968 20,447 18,041 50,400 171,448 26,991 43,502 46,737 17,549 282,038 123,130 361 27,992 29,683 7,344 7,924 (3,300) 4,255 8,895 13,156 (7,996) 35,750 20,718 24,632 127,472 (38,371) 40,005 29,613 49,886 458,582 103,146 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) 321 (50,188) (49,867) 4 5,803 (15,501) (9,694) (12) (12) 13,150 13,150 77 61,182 (16,746) 44,513 402 80,135 (82,447) (1,910) Net change in fund balances Fund balances - beginning Fund balances - ending 73,263 198,863 272,126 19,989 93,513 113,502 (3,312) 9,366 6,054 5,154 9,043 14,197 6,142 98,256 104,398 101,236 409,041 510,277 $ $ The notes to financial statements are an integral part of this statement. 37 $ $ $ $ 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, 2023 (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 $ 101,236 66,041 (57,452) 8,589 The net effect of various transactions involving capital is to increase net position. Capital contributions Gain (loss) on disposals $ 27,223 (58) 27,165 Gain (loss) on government joint venture (225) 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 developer liability increase Amortization of bond premium and discount Principal paid on bonds, notes, and leases Subscriptions (117) $ (313) 4,999 40,005 (13,506) 31,185 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 (3,643) $ 18,661 (34,703) (16,042) 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. 15,251 Interest expense on software based interenet technology arrangements on the statement of activities are not accrued on the governmental funds. (56) Amortization expense on refunded debt on the statement of activities are not accrued on the governmental funds. 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 (1,152) $ (926) (4,049) $ 38 (4,975) 157,216 City of Glendale, Arizona Statement of Net Position Proprietary Funds June 30, 2023 (amounts expressed in thousands) Business-type Activities Total NonMajor Funds Water and Sewer ASSETS Current assets: Equity in pooled cash and investments Restricted cash and investments Receivables: Accounts receivable 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 $ DEFERRED OUTFLOWS OF RESOURCES Amounts related to pensions and OPEB Amounts resulting from refunded debt Total deferred outflows of resources 59,109 Total Enterprise Funds Landfill $ 10,227 - $ 3,098 - $ 13,325 59,109 Governmental Activities Internal Service Funds $ 67,703 - 17,973 (2,823) 14 5,192 79,465 1,058 (12) 11,273 3,689 (659) 245 48 6,421 22,720 (3,494) 14 245 5,240 97,159 89 27 91 67,910 8,382 12,008 2,014 722 493 122 280 8,382 12,501 2,014 1,124 1,575 251 1,097,092 (496,682) 600,410 37,595 661,131 740,596 59,963 (21,170) 38,793 39,408 50,681 41,463 (24,427) 17,036 17,316 23,737 1,198,518 (542,279) 656,239 37,595 717,855 815,014 18,951 (8,045) 10,906 12,732 80,642 3,729 2,057 5,786 658 658 1,336 1,336 5,723 2,057 7,780 1,776 1,776 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 Subscription - due within one year 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 10,654 1,158 1,724 18,595 300 7,018 93 22,732 3,753 137 66,164 743 272 270 185 446 226 71 2,213 431 332 11 9 2 159 208 1,152 11,828 1,158 2,328 11 9 18,865 302 7,362 93 23,178 3,979 416 69,529 3,103 711 29,869 72 2,810 36,565 1,661 148,559 22,208 268 172,696 238,860 273 9,916 4,099 185 19,136 33,609 35,822 418 8,288 702 9,408 10,560 2,352 158,475 34,595 1,155 19,136 215,713 285,242 756 4,046 2,499 7,301 43,866 DEFERRED INFLOWS OF RESOURCES Amounts related to pensions and OPEB Amounts resulting from refunded debt Amounts related to leases Total deferred inflows of resources 1,162 1,768 1,988 4,918 218 218 586 586 1,966 1,768 1,988 5,722 729 729 440,321 28,161 17,036 485,518 10,906 18,595 15,949 722 11,899 15,118 502,604 122 (12,984) 15,299 280 (3,389) 13,927 18,595 15,949 1,124 11,899 (1,255) 531,830 251 26,666 37,823 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. 39 4,167 535,997 $ City of Glendale, Arizona Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2023 (amounts expressed in thousands) Business-type Activities Total Non-Major Landfill Funds Water and Sewer 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 $ 59,312 42,768 1,592 4,472 108,144 $ 13,173 22 53 13,248 $ 13,249 6,396 19,073 40 2,998 41,756 Governmental Activities Internal Service Funds Total Enterprise Funds $ 13,249 59,312 42,768 6,396 19,073 13,173 1,654 53 7,470 163,148 $ 61,330 29,179 363 9 90,881 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) 41,070 19,583 11,481 32,584 104,718 3,426 8,359 940 2 2,298 11,599 1,649 16,520 19,733 25 2,496 38,774 2,982 41,070 19,583 8,359 16,520 940 19,733 11,508 37,378 155,091 8,057 29,018 41,926 3,317 74,261 16,620 NONOPERATING REVENUES (EXPENSES) Impact fees Investment income Interest expense Net gain from joint venture Gain/(loss) on disposal of assets Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Transfer in Transfer out Change in net position Total net position - beginning, as restated Total net position - ending 3,348 2,523 (3,434) 1,446 8 3,891 7,317 3,375 817 (226) 11,283 491,321 502,604 $ 526 (347) 40 219 1,868 1,102 (44) 2,926 12,373 15,299 $ 38 (25) 56 69 3,051 692 663 4,406 9,521 13,927 3,348 3,087 (3,806) 1,446 104 4,179 12,236 4,067 2,582 (270) 18,615 2,008 (112) 1 1,897 18,517 18,517 19,306 37,823 $ 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. 40 $ $ 3,270 21,885 City of Glendale, Arizaon Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2023 (amounts expressed in thousands) Governmental Activities - Business-type Activities - Enterprise Funds Major Funds Water and Total NonSewer Landfill Major Funds 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 $ 108,968 (12,364) (32,980) (23,805) 39,819 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Transfers out Advances to/due from other funds Net cash provided (used) by noncapital financing activities $ 12,675 (2,206) (1,812) (4,012) 4,645 $ 40,916 (11,534) (17,393) (7,071) 4,918 Internal Service Funds Total $ 162,559 (26,104) (52,185) (34,888) 49,382 $ 90,866 (3,082) (17,210) (35,640) (8,180) 26,754 817 (226) 591 1,102 (44) 1,058 663 (1,564) (901) 2,582 (270) (1,564) 748 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on obligations (26,868) Acquisition of capital assets and rights (34,572) Impact fees 3,348 Interest payments on obligations 2,505 Net cash provided (used) by capital and related financing activities (55,587) (390) (8,458) 51 (8,797) (3,664) (25) (3,689) (27,258) (46,694) 3,348 2,531 (68,073) (4,396) (40) (4,436) 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 Cash and restricted cash and investment balances - end of the year $ 38 38 366 2,732 3,098 $ 3,087 3,087 (14,856) 99,791 84,935 $ 2,008 2,008 24,326 43,377 67,703 $ 2,982 $ 8,057 $ 16,620 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 Deferred inflows - leases Vouchers and accounts payable Intergovernmental payable Deposits Compensated absences Unearned revenue Claims payable Estimated closure and post-closure costs Net cash provided (used) by operating activities Noncash investing, capital and financing activities Gain on joint venture Change in value of joint venture Change in lease receivable Change in subscription based information technology arrangements payable Change in retainage payable $ 2,523 2,523 (12,654) 83,771 71,117 $ 526 526 (2,568) 13,288 10,720 $ 3,426 $ 1,649 $ $ 32,584 2,298 2,496 37,378 3,317 591 (93) 4,038 1,360 (5,031) (778) (143) 3,204 (83) 233 418 93 39,819 (241) (15) 681 228 (846) 259 (332) 24 940 4,645 (601) (126) (33) 1,494 503 (1,859) (33) 56 (63) 17 82 3 4,918 (251) (126) (141) 6,213 2,091 (7,736) (811) (143) 3,519 (146) (82) 524 3 93 940 49,382 22 (19) (31) 1,388 466 (1,719) 129 (496) 139 6,938 26,754 1,446 1,278 124 405 455 $ $ The notes ot the financial statements are an integral part of this statement. 41 256 - $ $ 888 - $ $ 1,446 1,278 124 1,549 455 $ $ 5,309 - CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 Summary of Significant Accounting Policies . . . . . . . . . . . . . . I . . Compliance – Excess of Expenditures Over Appropriations/Deficits in Fund Equity . . II . . Deposits and Investments . . . . . . . . . . . . . . . . . . . . III . . Note Receivable . . . . . . . . . . . . . . . . . . . . . . . IV . . Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . V . . Construction Commitments. . . . . . . . . . . . . . . . . . . . VI . . Internal Service Funds . . . . . . . . . . . . . . . . . . . . . VII . . Leases . . . . . . . . . . . . . . . . . . . . . . . . . . VIII . . Short-Term Debt . . . . . . . . . . . . . . . . . . . . . . . IX . . Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . X. . Landfill Obligations . . . . . . . . . . . . . . . . . . . . . . XI. . Inter-fund Transactions . . . . . . . . . . . . . . . . . . . . . XII . . Encumbrances . . . . . . . . . . . . . . . . . . . . . . . XIII. . Equity in Joint Venture . . . . . . . . . . . . . . . . . . . . XIV. . Jointly Governed Organizations . . . . . . . . . . . . . . . . . . XV. . Governmental Fund Balance Components and Fund Type Definitions . . . . . . XVI. . Change in Accounting Principle . . . . . . . . . . . . . . . . . . XVII . Pensions and Other Postemployment Benefits . . . . . . . . . . . . . XVIII . Contingent Liabilities and Commitments . . . . . . . . . . . . . . ....XIX . Tax Abatement . . . . . . . . . . . . . . . . . . . . . . . ..XX . Implementation of New Accounting Principles . . . . . . . . . . . . . XXI . Subsequent Events . . . . . . . . . . . . . . . . . . . . . . XXII . 42 Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..43 ..54 ..54 ..56 ..57 ...59 ..59 ..62 ..62 ..62 ..73 ..74 ..76 ..76 ..78 ..78 ..81 ..82 ..98 ..98 100 100 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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). 43 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 construction fund accounts for construction activities for government facilities, economic development, cultural facilities, open space and trails, libray, flood control and ARPA projects. 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. 44 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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. 45 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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. 46 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023, 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/amortization 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. Aggregated capital assets comprise a group of assets with a collective cost exceeding $500, adhering to the designated classes and useful life criteria applicable to standard capital assets. 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/amortized 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. 47 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 Lease and subscription-based information technology arrangements assets are amortized over the life of the associated contract. Capital assets transferred between funds are transferred at their carrying value (cost less accumulated depreciation/amortization) 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, 2023, is $1,110. 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, 2023, 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, 2023, is $3,013. 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, 2023, 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 48 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) projects, debt service, and excise tax revenues collected for voter approved transportation expenditures. 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/amortization 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. 49 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 January 1, 2022 August 16, 2022 October 1, 2022 March 1, 2023 Penalties and interest added (collection dates): First half of assessment Second half of assessment November 1, 2022 May 1, 2023 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, 2023, is as follows: Fund General fund General obligation debt service fund Total Rate $ $ 0.37 1.30 1.67 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 June 30, 50 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) 2023, 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 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. 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 51 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) service funds include the cost of sales and services, administrative expenses, and depreciation/amortization 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. Subscription-Based Information Technology Arrangements The City has entered into subscription-based information technology arrangements (SBITAs) and are accounted for based on the principle that a SBITA is a contract that conveys control of thes of the right to use another party's IT software, alone or in combination with tangible capital assets for a period of time. A government is required to recognize a subscription liability and an intangible right-to-use lease asset. T. 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. U. 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 52 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) 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. V. 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 contribute 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, 2023 active EODCRS members were required by statue to contribute at the rate of 8.165 percent (8 percent to the DC plan and .165 percent for the disability program) of the members’ annual covered payroll. The City was required by statue to contribute at the rate 6.165 percent (6 percent to the DC plan and .165 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 64.42 percent of the EODC members’ annual covered payroll to the EORP Legacy. 53 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) W. 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, 2023, was $807. II. Compliance - Excess of expenditures over appropriations/deficits in fund equity The City ended the fiscal year June 30, 2023, with a deficit net position of $2,934 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, 2023, with expenditures exceeding appropriation in the amount of $450 in the parks construction bond. General obligation bonds were issued in September 2023 which covers this deficit. 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 $328,130 and the bank balances were $332,300. The difference of $4,170 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. 54 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023. 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, 2023, the City had the following investments: Investment Type Coporate Bonds U.S. Agencies U.S. Treasury Arizona LGIP-State Pool Grand total investments 0-1 $ 15,257 28,206 65,079 25,929 $ 134,471 Investment Maturities (in years) 1-2 2-3 Over 3 $ 17,118 $ 4,858 $ 12,738 3,836 16,780 41,822 66,603 $ 46,636 $ 50,516 $ 66,603 Cash deposits Cash with fiscal agents Total deposits and investments $ $ Fair Value 37,233 44,780 190,284 25,929 298,226 328,130 126,175 752,531 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 City’s own assumptions about the assumptions market participants would use in pricing the asset. The City’s investments are classified as follows: Investment at fair value level Coporate Bonds U.S. Agencies U.S. Treasury Total Investments at fair value level External Investment Pools Measured at Fair Value State Treasurer's Investment Pool Total Investments Fair Value Measurements Using Levels Level 2 Level 3 Totals - $ 37,233 $ - $ 37,233 28,206 16,574 44,780 190,284 190,284 218,490 $ 53,807 $ 272,297 Level 1 $ $ $ 25,929 298,226 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 55 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) maturity dates. 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, 2023, 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 U.S. Treasury U.S. Agencies Corporate Corporate Corporate Corporate Corporate Corporate Corporate S&P Rating AA+ A-1+ A-1+ AA+ A+ AA AA+ A AAA AAAA Moody's Rating Aaa P-1 P-1 Aaa A1 A1 Aaa A2 Aaa Aa3 Aa2 % of Total Investments 60.30% 10.36% 9.56% 6.09% 4.42% 2.52% 2.45% 1.84% 1.09% 0.75% 0.62% Weighted Average Maturity (Years) 2.61 0.34 0.66 1.77 0.88 1.79 1.23 1.00 0.61 2.45 2.20 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 Federal Home Loan Banks Arizona LGIP Investment Type U.S. Treasury U.S. Agencies Arizona LGIP $ Amount 190,284 30,149 25,929 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 $97,101 less an allowance for doubtful accounts in the amount of $59,120 for a net value of $37,981 has been recorded at June 30, 2023. In the year 2020, the AZSTA began making payments to the City. Payments of $13,327 have been received by the City on the note as of June 30, 2023. 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. 56 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023, is as follows: Balances June 30, 2022 Governmental activities Non-depreciable assets: Construction in progress Land Artwork Total non-depreciable assets $ 8,625 116,019 2,639 127,283 Increase $ 40,858 70 40,928 Decrease $ Balances June 30, 2023 (24,554) $ (24,554) 24,929 116,019 2,709 143,657 Depreciable/amortizable assets: Buildings Right to use leased assets-building Improvements other than buildings Infrastructure - streets Infrastructure - parks Infrastructure - flood/stormdrains Infrastructure - airport Machinery and equipment Computer equipment Software Right to use IT software Automotive equipment Total depreciable/amortizable assets 392,462 364 286,521 921,003 99,813 81,705 22,681 43,126 4,526 6,875 53,023 1,912,099 4,415 3,179 37,536 4,755 1,196 1,476 3,113 1,377 22,000 4,949 83,996 (102) (6) (448) (155) (1,617) (2,328) 396,775 364 289,694 958,539 104,568 82,901 24,157 45,791 5,748 6,875 22,000 56,355 1,993,767 Less accumulated depreciation/amoritzation for: Buildings Right to use leased assets-building Improvements other than buildings Infrastructure - streets Infrastructure - parks Infrastructure - flood/stormdrains Infrastructure - airport Machinery and equipment Computer equipment Software Right to use IT software Automotive equipment Total accumulated depreciation/amortization (180,084) (99) (192,416) (423,112) (58,686) (16,814) (12,411) (36,221) (4,348) (5,214) (38,380) (967,785) (9,162) (99) (9,653) (24,757) (3,358) (1,160) (519) (2,242) (207) (125) (5,495) (3,992) (60,769) 102 5 444 155 1,564 2,270 (189,144) (198) (202,064) (447,869) (62,044) (17,974) (12,930) (38,019) (4,400) (5,339) (5,495) (40,808) (1,026,284) Total depreciable/amortizable assets, net 944,314 23,227 (58) 967,483 (24,612) $ 1,111,140 Governmental activities capital assets, net $ 1,071,597 57 $ 64,155 $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Balances June 30, 2022 Business-type Activities: Non-depreciable assets: Construction in progress - water and sewer Contruction in progress - landfill Contruction in progress - housing authority Land Total non-depreciable assets $ 23,947 1,372 817 17,241 43,377 Increase $ 33,018 4,870 493 38,381 Decrease $ Balances June 30, 2023 (32,391) $ (4,230) (36,621) 24,574 2,012 1,310 17,241 45,137 Depreciable/amortizable 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 Right to use IT software Automotive equipment Total depreciable/amortizable assets 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 1,103,947 482 4,404 1,557 7,041 872 23,522 1,086 743 1,495 625 2,141 6,479 50,447 (277) (247) (488) (1,012) 18,205 9,183 103,331 162,386 173,212 397,470 188,958 39,480 8,126 7,984 1,751 1,176 2,141 39,979 1,153,382 Less accumulated depreciation/amoritzation 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 Right to use IT software Automotive equipment Total accumulated depreciation/amortization (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) (399) (179) (4,116) (3,967) (4,202) (13,831) (5,118) (1,013) (170) (801) (176) (414) (2,992) (37,378) 271 169 448 888 (13,060) (3,033) (53,996) (71,167) (88,666) (178,022) (81,082) (21,641) (3,432) (5,157) (931) (1,065) (414) (20,614) (542,280) Total depreciable/amortizable assets, net 598,157 13,069 (124) 611,102 (36,745) $ 656,239 Business-type activities capital assets, net $ 641,534 58 $ 51,450 $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 $ $ 19,683 6,967 15,889 12,877 5,353 60,769 32,584 2,298 2,224 272 37,378 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, 2023. The projects include street construction, park facilities, and the construction of additional water and sewer facilities. At year-end, the government’s commitments with contractors are as follows: Project General government Community services Public safety Public works Street maintenance Water and sewer facilities Landfill Total primary government Spent-to-date $ 4,896 7,350 4,488 1,154 3,748 24,574 2,011 $ 48,221 Construction Commitment $ 8,016 6,389 1,389 592 2,542 12,938 264 $ 32,130 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 $10,000 with a $50 59 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) 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. 60 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 $29,869 as of June 30, 2023. Changes in the balances of claims liabilities during the past two years are as follows: Unpaid claims, beginning of fiscal year Current year claims and changes in estimate Claims payments Balance at fiscal year end Risk Management 2023 2022 $ 7,205 $ 3,731 $ 1,290 (1,410) 7,085 6,998 (3,524) $ 7,205 Workers Compensation 2023 2022 $ 11,200 $ 9,321 $ 7,960 (3,917) 15,243 $ 4,060 (2,181) 11,200 Employee Benefits 2023 2022 $ 4,526 $ 4,543 32,676 (29,661) $ 7,541 29,452 (29,469) $ 4,526 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. 61 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 19-months to 741-months. As of June 30, 2023, the value of the lease receivable is $50,210. The leases have interest rates between 0.514% and 3.843%. The value of the deferred inflow of resources as of June 30, 2023 was $49,272, and Glendale recognized lease revenue of $2,471 and lease interest revenue of $1,208 during the fiscal year. The lease receivable does not include any variable payments. GOVERNMENTAL ACTIVITIES: Deferred Inflow of Resources Land Buildings Land Improvements Other Total Deferred Inflow of Resources Balance as of Balance as of July 1, 2022 Additions Reductions June 30, 2023 $ 41,234 $ 704 $ 1,312 $ 40,626 2,764 373 647 2,490 1 1 4,538 371 4,167 $ 48,537 $ 1,077 $ 2,330 $ 47,284 BUSINESS-TYPE ACTIVITIES: Deferred Inflow of Resources Land Other Total Deferred Inflow of Resources Balance as of July 1, 2022 Additions $ 618 $ 1,513 $ 2,131 $ GOVERNMENTAL ACTIVITIES: Lease Receivable Land Buildings Land Improvements Other Total Lease Receivable Balance as of Balance as of July 1, 2022 Additions Reductions June 30, 2023 $ 41,482 $ 704 $ 758 $ 41,428 2,785 373 626 2,532 1 1 4,571 336 4,235 $ 48,839 $ 1,077 $ 1,720 $ 48,196 BUSINESS-TYPE ACTIVITIES: Lease Receivable Land Other Total Lease Receivable Balance as of July 1, 2022 Additions $ 614 $ 1,524 $ 2,138 $ Balance as of June 30, 2023 19 $ 599 124 1,389 143 $ 1,988 Reductions - $ - $ Balance as of June 30, 2023 12 $ 602 112 1,412 124 $ 2,014 Reductions - $ - $ IX. Short-term debt The City did not issue short-term debt for the year ended June 30, 2023. 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. 62 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 $50,235 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 $60,810. The current year revenues of $47,814 collected in the transportation special revenue fund paid the current year principal and interest amounts of $4,310 and $2,384 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 $161,880 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 $203,390. The current year principal and interest amount of $13,570 and $8,417 were funded with a transfer from the General fund. The $149,165 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 $193,471. The current year principal and interest on the bonds were $26,090 and net revenues of the system were $41,881. 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 bond series 2003 and 2004, 63 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) 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 $262,311. Excise tax revenues pledged for repayment of MPC was $267,156. The current year principal and interest paid was $13,150. 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 principal and interest remaining to be paid is $304,816. The current year interest on the bonds was $5,662. 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, 2023, the value of the lease liability is $157. The lease has an interest rate of 0.8927%. The value of the right to use asset as of June 30, 2023 was $364 with accumulated amortization of $198. The lease liability does not include any variable payments or sublease agreements. F. Subscription Based Internet Technology Agreements The City has entered into subscription based internet technology agreements (SBITAs) involving various software. Arrangement vary from 12 to 84 months. An initial liability was recorded in the amount of $23,855. As of June 30, 2023, the value of the lease liability is $17,846. The subscriptions have interest rates between 1.58% and 3.12%. The value of the right to use asset as of June 30, 2023 was $24,141 with accumulated amortization of $5,909. 64 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) G. 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, 2023: General obligation (GO) bonds General obligation (GO) bondsDirect borrowing Revenue bonds: Excise Tax Revenue bonds Transportation bonds Transportation bonds-Direct borrowing Municipal Property Corporation Certificates of Participation (COP) Total bonds payable Other long-term obligations: Lease obligations Subscription-based IT arrangements Net pensions and OPEB liabilities Compensated absences Claims and judgements Unamortized premium on debt issuance1 Unamortized discount on debt issuance1 Developer payable obligations Total other long-term obligations Total June 30, 2022 1 $ 64,990 Increases $ - $ Decreases (14,730) June 30, 2023 $ 50,260 Amounts Due Within OneYear $ 3,830 51,415 - (3,140) 48,275 3,220 175,450 47,345 - (13,570) (4,295) 161,880 43,050 14,245 4,515 7,200 179,555 252,800 778,755 - (15) (4,255) (40,005) 7,185 175,300 252,800 738,750 15 4,475 13,065 43,365 261 311,440 27,409 22,931 21,832 15,060 41,926 (104) (5,511) (158,967) (11,117) (34,988) 157 16,321 152,473 31,352 29,869 105 2,953 15,588 29,869 31,077 - (5,399) 25,678 4,554 (400) 5,160 397,878 313 79,131 400 (215,686) 5,473 261,323 53,069 (255,691) $ 1,000,073 $ 1,176,633 $ 79,131 $ $ 96,434 ¹The beginning balances of unamortized premiums and discounts on debt issuance have been restated. See Note XVII . 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 $1,000,073 in the total liabilities, $533,579 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. 65 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023: Landfill GO bonds Water and sewer revenue bonds Total bonds payable June 30, 20221 $ 8,915 167,760 176,675 Other long-term obligations: Estimated closure and post-closure costs Subscription-based IT arrangements Unamortized premium on debt issuance Net pensions and OPEB liabilities Compensated absences Arbitrage rebate Housing noncurrent liabilities Total other long-term obligations Total $ Increases $ - $ Decreases (270) (18,595) (18,865) June 30, 2023 $ 8,645 149,165 157,810 Amounts Due Within OneYear $ 285 19,190 19,475 18,196 - 940 2,023 (498) 19,136 1,525 416 28,039 28,382 4,156 22 78,795 6,311 3,044 290 26 12,634 (4,484) (98) (2,520) (4) (7,604) 23,555 34,595 4,680 290 44 83,825 3,703 2,328 6,447 255,470 $ 12,634 $ (26,469) $ 241,635 $ 25,922 ¹The beginning balances of unamortized premiums on debt issuance have been restated. See Note XVII . Of the $241,635 in total liabilities, $182,890 (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, arbitrage rebate payable, and housing noncurrent liabilities. H. 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 General Obligation Bonds Series 2018 October 13, 2021 66 $ Remaining Balance 16,705 7,225 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) I. Bonds payable Bonds payable on June 30, 2023, are comprised of the following: Classified in governmental activities on the statement of net position: Purpose Interest Rate GO bonds payable from secondary assessed property taxes Various Tax-Exempt (A), Taxable (B) 1.54-4.00 Various Taxable 2019 3.00-5.00 Various Tax-Exempt 2021 3.00-5.00 Various Tax-Exempt 2022 5.00 Total Issued Fiscal Year Ending June 30 Year Series Matures 2016 2019 2021 2022 2036 2038 2041 2042 Amount of Original Issue Bonds Outstanding June 30, 2023 $ $ 27,285 15,385 13,700 31,375 5,955 13,780 10,520 20,005 50,260 GO bonds payable from secondary assessed property taxes-direct borrowing Refunding Taxable BAB 2017 3.16 2018 Refunding Taxable 2021 2.21 2022 Total 2030 2037 26,555 32,225 17,980 30,295 48,275 Revenue bonds payable from the 0.5% transporation sales tax Refunding Tax-Exempt Excise Tax Rev 2.00-5.00 Total 2015 2032 55,635 43,050 43,050 Revenue bonds payable from the 0.5% transporation sales tax Refunding Tax-Exempt Excise Tax Rev 2.62 Total 2017 2032 19,330 7,185 7,185 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 2031 2033 2033 2032 100,430 13,700 33,830 65,385 68,515 13,700 25,790 53,875 161,880 Municipal Property Corporation payable from general fund payments MPC Taxable excise tax 2003B 1.46-5.58 2003 MPC Taxable excise tax 2008B 5.45-6.16 2008 MPC Tax-Exempt refunding 2012B 5.00 2013 MPC Tax-Exempt refunding 2012C 5.00 2013 Total 2033 2033 2033 2038 105,260 52,780 39,620 183,405 1,480 33,640 31,935 108,245 175,300 Certificates of Participation payable from general fund payments COPs Taxable 2021 0.897-2.942 2022 Total 2037 252,800 252,800 252,800 Total bonds payable recorded in governmental activities Less current portion Long-term portion of bonds payable recorded in governmental activities 67 $ 738,750 (43,365) 695,385 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Classified in business-type activities on the statement of net position: Purpose GO bonds payable from landfill fund Landfill Total Interest Rate Issued Fiscal Year Ending June 30 Year Series Matures 5.00 2022 2042 2015 2021 2021 2022 2022 2028 2030 2041 2042 2028 Revenue bonds/obligations payable from water and sewer fund Various refunding 2.00-5.00 Various refunding 5.00 Various 5.00 Various 5.00 Refunding 2012 5.00 Total Amount of Original Issue Bonds Outstanding June 30, 2023 $ $ 8,915 121,245 20,250 22,720 20,665 40,010 Total bonds payable recorded in business-type activities Less current portion Long-term portion of bonds payable recorded in business-type activities J. 8,645 8,645 55,450 20,250 22,720 20,665 30,080 149,165 $ 157,810 (19,475) 138,335 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, 2023, is as follows: 6% Capacity to incur bonded debt Less: Bonded debt applicable to limit Unused bonded debt capacity $ $ 207,357 (16,922) 190,435 20% $ $ 691,189 (97,547) 593,642 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. 68 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) K. Bonds authorized, issued and unissued Bonds authorized but not fully issued as of June 30, 2023, are shown below: Authorized Amount GO bonds Voter authorized October 20, 1981 Operations center $ 6,750 Authorized but Unissued Issued through June 30, 2023 $ 550 $ 6,200 Voter authorized March 10, 1987 Library 9,698 8,225 1,473 Voter authorized November 2, 1999 Cultural facility 1 2 Economic development Governmental facilities 1 2 Landfill development 1 2 Library Open spaces Transit 1 18,215 50,500 40,910 17,000 15,398 53,700 6,935 5,583 28,453 20,325 12,374 4,420 185 12,632 22,047 20,585 4,626 15,398 49,280 6,750 Voter authorized May 15, 2007 Flood control2 Parks and recreation2 Public safety2 Streets and parking2 Total GO bonds 20,554 16,155 102,638 79,065 437,518 12,880 10,111 16,058 78,807 197,971 7,674 6,044 86,580 258 239,547 $ $ $ Revenue bonds Voter authorized November 2, 19992 Water and sewer 1 Total revenue bonds $ 10,000 10,000 $ - $ 10,000 10,000 Total bonds $ 447,518 $ 197,971 $ 249,547 (1) Certain general obligation bonds or revenue bonds can be issued as general obligation bonds, revenue bonds or a combination thereof. (2) The Voter authorized November 2, 1999 and May 15, 2007 issued through June 30, 2023, and authorized but unissued amounts were adjusted for the 2016 ARS 35-457 change to allow for bond premium to go toward project costs if counted against authorization. 69 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) L. Other debt (developer, notes, long-term) 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. 70 $ 5,473 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) M. Future year debt service requirements Fiscal Year Ending Transportation Bonds Transportation Bonds Direct Borrowing 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total $ $ 6,496 6,495 6,493 6,494 6,493 6,493 6,491 6,494 51,949 Less interest 8,899 Principal $ 43,050 $ MPC Bonds Excise Tax Bonds G.O. Bonds G.O. Certificates Bonds of Direct ParticiBorrowing pation Water and Sewer Revenue Landfill Bonds/ Bonds Obligations Lease Obligations Subscription Based IT Arrangem. $ $ $ 203 208 207 207 206 206 205 205 7,214 8,861 $ 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 22,532 262,311 $ 22,000 22,034 22,049 22,041 22,059 21,300 21,338 21,342 20,224 9,003 203,390 $ 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 71,295 $ 4,457 4,469 4,473 4,468 6,076 6,261 6,071 3,164 3,168 3,170 3,177 3,166 3,165 1,007 56,292 1,676 7,185 87,011 $ 175,300 41,510 $ 161,880 21,035 $ 50,260 8,017 $ 48,275 $ 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 23,322 304,816 52,016 $ 252,800 717 713 713 713 717 714 716 717 717 716 714 716 717 717 715 717 712 717 714 13,592 $ 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 1,990 193,471 4,947 $ 8,645 44,306 $ 149,165 $ The remainder of this page left blank intentionally. 71 105 53 158 1 157 $ 6,483 4,728 3,291 2,653 1,174 197 Total 18,526 $ 104,466 102,497 101,628 99,085 95,344 84,269 84,297 76,087 76,967 71,796 57,768 57,995 58,198 55,717 31,396 7,598 7,595 7,595 4,363 1,184,661 680 17,846 270,098 $ 914,563 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) The following table discloses the debt service requirements as of June 30, 2023, segregating principal and interest, for the next five years and in five-year increments thereafter. Fiscal Year 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2042 Total $ $ Principal 69,124 69,518 71,094 71,412 70,572 308,682 229,800 24,360 914,562 $ $ Interest 35,342 32,978 30,534 27,673 24,772 84,736 31,274 2,789 270,098 N. New bonds No new bonds were issued in the fiscal year through June 30, 2023. The remainder of this page left blank intentionally. 72 $ $ Total 104,466 102,496 101,628 99,085 95,344 393,418 261,074 27,149 1,184,660 CITY OF GLENDALE, ARIZONA Note to the Financial Statements June 30, 2023 (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 post- closure 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, 2023, calculated below, represents the cumulative amount reported to date based on the use of estimated capacity of the landfill. Capacity (cubic yards) Capacity used to date Percentage of capacity used Total closure and post-closure costs in present dollars: as of June 30, 2023 as of June 30, 2022 Closure and post-closure care costs: Amount remaining to be recognized as of June 30, 2023 Liability recognized as of June 30, 2023 South Cell 24,615 23,509 96% North Cell 29,769 $ $ 21,336 20,713 $ $ 20,037 19,452 $ $ 21,336 - $ $ 901 19,136 These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year 2022-23. The estimated costs are subject to changes due to inflation, deflation, new technology, and applicable laws and regulations. Assets are not restricted to fund the obligations. The estimated remaining life of the landfill is approximately 38 years. According to state and federal laws and regulations, the City must comply with the local government financial test requirements that assure the City can meet the cost of landfill closure, post-closure, and corrective action when needed. The City is in compliance with these requirements. The remainder of this page left blank 73 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) XII. Inter-fund transactions Inter-fund balances at June 30, 2023, consisted of the following: A. Due to/due from Due to general fund from: Major governmental funds Other construction fund Other non-major governmental funds Community development block grants fund Other special revenue fund Streets construction Parks bonds construction Non-major proprietary funds Housing Total due to general fund $ 46 400 1,479 22 416 $ 9 2,372 The inter-fund balances at June 30, 2023, 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, 2023, 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 74 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) B. Inter-fund transfers Inter-fund transfers for the year ended June 30, 2023, consisted of the following: Transfers to municipal property corporation debt service fund from: General fund Total transfers to municipal property corporation debt service fund $ 13,150 13,150 Transfers to transportation special revenue fund from: General fund Transportation capital projects fund Total transfers to transportation special revenue fund 3,844 1,959 5,803 Transfers to non-major special revenue funds from: General fund Other construction fund Highway user gas tax fund Street construction fund Capital projects fund Fire and police construction fund Parks bond construction fund Water and sewer fund Landfill fund Total transfers to non-major special revenue fund 2,959 12 3 86 10,507 34 18 226 44 13,889 Transfers to non-major debt service funds from: General fund Transportation special revenue fund Total transfers to non-major debt service funds 27,653 6,704 34,357 Transfers to non-major capital projects fund from: Highway user gas tax fund Transportation special revenue fund Total transfers to non-major capital projects fund 4,139 8,797 12,936 Transfers to water and sewer proprietary fund from: General fund Total transfers to water and sewer proprietary fund 817 817 Transfers to landfill proprietary fund from: General fund Total transfers to landfill proprietary fund 1,102 1,102 Transfers to non-major proprietary funds from: General fund Total transfers to other non-major proprietary fund Grand total all transfers 663 663 $ 75 82,717 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023, the City intended to honor $39,474 of outstanding encumbrances in the new fiscal year. Fund Major: General Transportation special revenue Water and sewer Landfill Non-Major: Non-major special revenue Non-major capital projects Non-major proprietary Internal service Total $ $ 1,043 252 11,266 1,309 1,522 20,501 544 3,037 39,474 XIV. 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, 2022. 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, 2023, the City recognized a gain in the joint venture of $1,446. 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. 76 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2022, 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 $ $ 95,314 576,925 672,239 75,515 596,724 75,335 (92,940) (17,605) 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-two 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, 2022. The equity interest for the City at June 30, 2022, was $2,354. The City accounts for its approximate 4% investment using the equity method in Public Safety as a part of the General Fund. For the year ended June 30, 2023, the City recognized a loss in the joint venture of $225. The remainder of this page left blank intentionally. 77 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2022, 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 $ $ 4,981 55,883 60,864 2,624 58,240 10,798 (16,744) (5,946) 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, 2023 is $96,885. Per the City’s adopted financial policies, 10% of the general fund operating revenue which totals $40,517 has been earmarked as the Budget Stabilization Reserve and $56,368 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, 2023 to commit these funds; therefore, the funds are reported as unassigned. 78 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) General Nonspendable Inventories and prepaid items Lease receivable, net Cemetery perpetual care Total Nonspendable Restricted Public transit U.S. drug enforcement Debt service Court security HOME program Highway user revenue Police activities Fire activities Other grants Development impact fees Streets construction Fire and police construction Park bond construction Library construction Economic development Open spaces/trails Cultural and historical projects Governmetn facilities Neighborhood stabilization Flood control construction Total restricted Committed Artwork Pool/Park repair Total committed Assigned Equipment replacement General government capital projects Fire Apparatus Pension reserve Bed tax/tourism Mega events Public safety training facility TPT revenue stabilization Inflation risk Total assigned Unassigned fund balance $ $ Transportation 142 820 962 $ 171 171 Other Construction Municipal Property Corporation Debt Service $ $ - 15,413 8,064 23,477 113,331 113,331 210 2,943 1,171 630 (56) 1,156 6,054 - - 6,693 86,876 15,546 20,000 3,686 3,000 10,000 5,000 150,801 96,886 272,126 $ Other Non-Major Governmental Funds - $ 11 6,390 6,401 $ 324 820 6,390 7,534 14,197 14,197 1,593 3,336 (28) 602 24,138 863 58,612 1,904 2,091 (450) 880 93,541 113,331 1,593 17,533 (28) 602 24,138 15,413 8,064 863 58,612 1,904 2,091 (450) 210 2,943 1,171 630 (56) 880 1,156 250,600 - - 1,825 243 2,068 1,825 243 2,068 - - - - 6,693 113,502 6,054 14,197 2,388 2,388 104,398 86,876 15,546 20,000 3,686 3,000 2,388 10,000 5,000 153,189 96,886 510,277 79 $ - Total Governmental Funds $ $ $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Enterprise Fund Type Water and sewer fund Restricted for debt service $ 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. 18,595 11,899 Restricted for OPEB benefits 722 Restricted for other purposes 15,949 47,165 Total restricted for water and sewer Landfill fund Restricted for OPEB benefits 122 122 Total restricted for landfill Other enterprise funds Restricted for OPEB benefits 280 280 Total restricted for other enterprise funds $ Total restricted for enterprise fund types The remainder of this page left blank intentionally. 80 47,567 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) XVII. Change in accounting principle Net position and fund balance at June 30, 2022 were restated for a changed in method of amortizing bond premium and discount from straight line to effective interest rate. The effective interest rate is required by GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. RESTATEMENT OF NET POSITION Restatement of net position as of July 1, 2022, is as follows: Net position, beginning of year, as originally reported Correction of bond premiums/discounts, net of accumulated amortization based on use of the effective interest method for amortization Net position beginning of year, as restated Governmental Activities $ 635,476 Business-type Activities Totals $ 508,845 $ 1,144,321 13,611 649,087 5,267 18,878 514,112 $ 1,163,199 $ Water & Sewer Enterprise Fund $ 486,280 Net position, beginning of year, as originally reported Correction of bond premiums/discounts, net of accumulated amortization based on use of the effective interest method for amortization Net position beginning of year, as restated $ 5,041 491,321 $ Landfill Enterprise Fund Totals $ 12,147 $ 498,427 $ The remainder of this page left blank intentionally. 81 226 12,373 $ 5,267 503,694 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) XVIII. 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, 2023, 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 Deferred inflows of resources related to pensions and OPEB Pension and OPEB expense Governmental activities $ 5,524 152,473 Business-type activities $ 1,124 34,595 73,030 5,723 78,753 12,060 34,703 1,966 3,469 14,026 38,172 The remainder of this page left blank intentionally. 82 Total $ 6,648 187,068 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 cost- sharing 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 intitial 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% 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 $150 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. 83 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023, active ASRS members were required by statute to contribute at the actuarially determined rate of 12.17 percent (12.03 percent for retirement and 0.14 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 12.17 percent (11.92 percent for retirement, 0.11 percent for health insurance premium benefit, and 0.14 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 9.68 percent (9.62 percent for retirement, and 0.06 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, 2023, were $10,420, $96, and $122, respectively. During fiscal year 2023, 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, 2023, the City reported the following asset and liabilities for its proportionate share of the ASRS’ net pension/OPEB asset or liability: ASRS Pension Health insurance premium benefts Long-term disability $ Net pension/OPEB (asset) liability 111,319 (3,821) 63 The net asset and net liabilities were measured as of June 30, 2022. 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, 2021, to the measurement date of June 30, 2022. 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, 2022. The City’s proportions measured as of June 30, 2022, and the change from its proportions measured as of June 30, 2022 were: Proportion June 30, 2022 0.68201% 0.68454% 0.68238% ASRS Pension Health insurance premium benefit Long-term disability Increase from June 30, 2021 (0.00110) (0.00046) (0.00112) Expense - For the year ended June 30, 2023, the City recognized the following pension and OPEB expense: ASRS Pension Health insurance premium benefit Long-term disability $ 84 Pension/OPEB expense 13,258 (558) 25 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Deferred outflows/inflows of resources - At June 30, 2023 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 $ $ $ 949 - - $ 1,950 33 $ - 62 105 34 154 - 2,932 - 128 - 2 858 119 - 4 10 6 3,051 $ $ 96 158 $ 2,187 $ 122 199 $ The amounts reported as deferred outflows of resources related to ASRS pensions and OPEB resulting from the City's 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, 2024. 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, 2024 2025 2026 2027 2028 Thereafter Pension $ 59 5,525 10,420 17,752 $ $ 6,068 (1,390) (5,091) 4,694 - Health insurance premium benefit $ (584) (636) (697) (105) (103) - The remainder of this page left blank intentionally. 85 Long-term disability $ (12) (16) (31) (4) (30) (51) 221 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 6/30/2021 6/30/2022 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 benefits 2012 GLDT for long-term disability Not applicable Actuarial assumptions used in the June 30, 2022, valuation were based on results of an actuarial experience study for the five-year period ending June 30, 2018. 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: Target Allocation Asset Class Equity Real Estate Fixed Income-Credit Fixed Income-Int Rate Sensitive Total 50% 20% 20% 10% 100% Long-term expected geometric real rate of return 3.90% 6.00% 5.30% -0.20% Discount Rate - At June 30, 2022, the discount rate used to measure the ASRS total pension/OPEB liability was 7.0 percent. 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. 86 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 1% Decrease (6.0)% City's proportionate share of the Net pension liability Net insurance premium benefit liability (asset) Net long-term disability liability $ Current Discount Rate (7.0)% 164,248 $ (2,747) 104 1% Increase (8.0)% 111,319 $ (3,821) 63 67,185 (4,731) 23 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. 87 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 benefits Final average salary is based on Benefit percentage Normal Retirement Before January 1, 2012 20years of service, any age 15 years of service, age 62 Initial Membership Date On or after January 1, 2012 and before July 17, 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 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 $150 per month to $260 per month depending on the age of the member and dependents. The remainder of this page left blank intentionally. 88 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Employees Covered by Benefit Terms - At June 30, 2023, the following employees were covered by the agent plans’ benefit terms: PSPRS Police Pension PSPRS Firefighters Pension Health Health Inactive employees or beneficiaries currently receiving benefits 266 266 124 124 Inactive employees entitled to but not yet receiving benefits 99 62 44 38 Active employees 343 343 217 217 Total 708 671 385 379 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%-8.99% 7.65%-10.05% health insurance premium benefit 0%-0.10% 0%-0.13% City-pension 15.40%-20.21% 17.95%-22.69% City-health insurance premium benefit 0%-0.24% 0%-0.13% The City’s contributions to the plans for the year ended June 30, 2023, were: Health insurance premium benefit Pension PSPRS-Police PSPRS-Fire $ 6,771 4,482 $ 94 4 During fiscal year 2023, the City paid for PSPRS pension and OPEB contributions 100 percent from the General Fund. Liability - At June 30, 2023, the City reported the following assets and liabilities: PSPRS Police PSPRS Firefighters $ Net pension (asset) liability 49,173 26,440 Net OPEB (asset) liability $ (683) (2,144) The net assets and net liabilities were measured as of June 30, 2022, and the total liability used to calculate the net asset or liability was determined by an actuarial valuation as of June 30, 2021. 89 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2022 Entry age normal 7.2% 3.0-6.25% for pensions/not applicable for OPEB 2.5% for pensions/not applicable for OPEB 1.85% for pensions/not applcable for OPEB Pub-S-2010 tables Not applicable Actuarial assumptions used in the June 30, 2022, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2017. 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 7.2 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: Asset class Cash - Mellon Core bonds Other assets (Capital appreciation) Diversifying strategies International public equity Private credit Global private equity U.S. Public equity Total Target allocation 1% 2% 7% 10% 16% 20% 20% 24% 100% Long-term expected geometric real rate of return -0.35% 0.45% 4.83% 2.68% 4.47% 5.10% 7.18% 3.49% Discount Rate – At June 30, 2022, the discount rate used to measure the PSPRS total pension/OPEB liability was 7.2 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. 90 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2022 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 Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expenses Other changes Adjustment to beginning of year Net changes Balance as of June 30, 2023 Pension Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 403,216 $ 236,644 $ 166,572 $ Health insurance premium benefit Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 5,576 $ 6,814 $ (1,238) 7,385 29,268 - 7,385 29,268 142 409 - 142 409 7,591 - 7,591 (242) - (242) 3,539 - 177,969 3,339 (15,842) 3,539 (177,969) (3,339) 15,842 118 - 134 10 (267) 118 (134) (10) 267 (19,339) - (19,339) (284) - 284 - (233) - (233) (5) - 5 - 28,444 431,660 145,843 $ 382,487 (117,399) $ 49,173 194 5,770 (361) 6,453 555 (683) $ The remainder of this page left blank intentionally. 91 $ $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) PSPRS - Firefighters Balance at June 30, 2022 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 Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expenses Other changes Net changes Balance as of June 30, 2023 Pension Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 248,417 $ 165,556 $ 82,861 $ Health insurance premium benefit Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 2,986 $ 5,715 $ (2,729) 4,979 18,119 - 4,979 18,119 83 220 - 83 220 (2,199) - (2,199) 30 - 30 2,525 - 87,874 1,875 (9,728) 2,525 (87,874) (1,875) 9,728 31 - 4 4 (225) 31 (4) (4) 225 (10,388) 13,036 261,453 (10,389) (175) 69,457 $ 235,013 1 175 (56,421) $ 26,440 (116) 248 3,234 (116) (4) (337) 5,378 4 585 (2,144) $ $ $ 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 7.2 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: 1% Decrease (6.20%/6.00%) PSPRS Police Net pension liability Net OPEB liability (asset) PSPRS Firefighters Net pension liability Net OPEB asset $ Current discount rate (7.20%/7.00%) 1% Increase (8.20%/8.00%) 108,508 $ (23) 49,173 $ (683) 831 (1,239) 61,501 (1,782) 26,440 (2,144) (2,341) (2,451) Plan fiduciary net position - Detailed information about the plans’ fiduciary net position is available in the separately issued PSPRS financial report. 92 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Expense - For the year ended June 30, 2023, the City recognized the following pension and OPEB expense: PSPRS Police PSPRS Firefighters $ Pension Expense 17,626 9,823 OPEB Expense (Income) $ (250) (350) Deferred outflows/inflows of resources - At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: PSPRS - Police 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 Pension Deferred Deferred outflow inflows of resources of resources Health insurance premium benefit Deferred Deferred outflow inflows of resources of resources $ $ 10,796 6,032 $ 12,367 6,771 35,966 $ 893 - $ 893 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 131 $ 110 $ 94 335 1,318 - $ 1,318 Pension Deferred Deferred outflow inflows of resources of resources Health insurance premium benefit Deferred Deferred outflow inflows of resources of resources $ $ 7,190 5,876 $ 6,642 4,482 24,190 $ 93 4,519 - $ 4,519 26 41 $ 82 $ 4 153 594 39 - $ 633 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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: PSPRS Police Pension Health Year Ending June 30, 2024 2025 2026 2027 2028 Thereafter 6,232 6,238 4,341 9,636 1,855 - (313) (325) (380) (38) (21) - PSPRS Firefighters Pension Health 3,659 2,857 695 6,351 814 813 (139) (157) (192) 67 (35) (28) 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, 2023, the number of employees covered by the plan totaled 478. Inactive employees or beneficiaries currently receiving benefits Active employees Total 478 478 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 andassumptions used include 94 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) 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's discontinued benefits for any future retirees. Only those already retired as of June 30, 2018 are eligible for OPEB benefits. In 2023, amounts reflect updated mortality improvement assumptions with Scale MP-2021. For June 30, 2023, the actuarial cost method used is the entry age normal method. A 3.86% pay as you go discount/investment rate was used. 2016 2017 2018 2019 2020 2021 2022 2023 Discount rate 2.85% 3.43% 3.62% 3.13% 2.45% 1.92% 3.69% 3.86% 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 Infation Salary Increases Discount rate Mortality rates Pre-retirement Post-retirement Healthcare cost trend rates June 30, 2023 June 30, 2023 2.4% 3.5% including inflation 3.86% Not applicable since plan is closed to new retirees PubG.H-2010 and PubS.H-2010 healthy annuitant mortality table, generational with projection sclae MP-2021 5.0%-7.00% The remainder of this page left blank intentionally. 95 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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, 2023. The following table shows the changes in OPEB liability as of June 30, 2023. Total OPEB liability balance at June 30, 2022 $ 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 490 25 (934) 109 383 (417) Total OPEB liability balance at June 30, 2023 $ 73 Multi-year schedule of changes in the net OPEB liability is available in the Required Supplementary Information. Discount rate sensitivity The discount rate of 3.86% was used to measure the total OPEB liability. This discount rate is the Fidelity General Obligation AA 20 Year Yield as of June 30, 2023. 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. Current discount Rate 1% Decrease Discount rate Total OPEB liability 2.86% 54 $ $ 1% Increase 3.86% 73 $ 4.86% 88 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 Cost Trend Rates 5.00% 107 96 $ 73 $ 6.00% 34 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (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 $ 25 (1,208) (219) (1,402) $ Deferred outflows/inflows of resources At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB as shown in the following table. Deferred Outflows of Resources Differences between expected and actual experience Changes of assumptions or other inputs Total $ $ - Deferred Inflows of Resources $ 547 657 $ 1,204 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPEB Expense Year Ending June 30, 2024 2025 2026 2027 2028 Thereafter $ $ (602) (602) (1,204) The remainder of this page left blank intentionally. 97 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) XIX. 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. XX. 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, 2023. The remainder of this page left blank intentionally. 98 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) Primary Government City of Glendale, AZ Purpose of Program Economic Development Tax being abated Sales tax reimbursements Authority under which the abatement agreement is entered The City is authorized pursuant to Article 1, Section 3 of its Charter and ARS 9-500.05 and 9-500.11, ARS 11-952 to enter into economic development agreements with 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 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, enhanceing 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. How amount of abatement is determined 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. Types of commitments made by the City other than to reduce taxes 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, 2023 $ 8,700 The remainder of this page left blank intentionally. 99 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2023 (amounts expressed in thousands) XXI. Implementation of new accounting principles The City adopted the provisions of GASB Statement No. 96, Subscription Based Internet Technology Arrangements (SBITAs). This statement is to enhance the relevance and consistency of information about government's subscription activities. This statement requires recognition of certain subscription assets and liabilities for SBITAs that previously were classified as operating expenditures. It establishes a single model for SBITA accounting based on the foundational principle that SBITAs are financings of the right to use an underlying asset. Under this standard, a government is required to recognize a subscription liability and an intangible right-to-use lease asset. The City adopted the requirements of the statement effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption. XXII. Subsequent Events On September 13, 2023, the City of Glendale closed on $64,260 tax exempt General Obligation bond series 2023 with The Bank of New York Mellon, whereby the proceeds were used to fund public safety, parks, flood control, open spaces, cultural facilities, libraries, and governmental facilities. 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. On January 31, 2024, Fitch Ratings upgraded the City of Glendale's water and sewer revenue debt ratings from 'AA' to 'AA+' for the Water and Sewer Senior Revenue Obligations Series 2022A, Water and Sewer Senior Revenue Refunding Obligations Series 2022B, Water and Sewer Subordinate Revenue Obligations Series 2021, and Water and Sewer Subordinate Revenue Refunding Obligations Series 2020. The upgrade reflected sustained improvements in leverage, which is expected to remain very low and is attributed to the implementation of annual rate increases adopted to support the capital improvement program. The remainder of this page left blank 100 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT REQUIRED SUPPLEMENTARY INFORMATION (other than MD&A) FOR THE FISCAL YEAR ENDED JUNE 30, 2023 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 104-105 Schedule of Changes in the City’s Net Pension/OPEB (Asset)/Liability and Related Ratios Agent plans 106-113 Schedule of OPEB Liability-City OPEB plan 114-115 Schedule of City's Pension/OPEB Contributions 116-119 Notes to Net Pension/OPEB (assets)/liability and contributions 120-121 Budgetary Comparison Schedule-General Fund 122-123 Budgetary Comparison Schedule-Transportation Special Revenue Fund Notes to Required Supplementary Information 124 125-126 103 CITY OF GLENDALE, ARIZONA Schedule of the City's proportionate share of the net pension/OPEB (asset)/liability Cost-sharing plans June 30, 2023 (amounts expressed in thousands) ASRS-Pension City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll City's proportionate share of the net pension liability as a perecentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 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 perecentage 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 perecentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability 2023 (2022) 0.682010% $ 111,319 $ 68,377 Reportings fiscal year (measurement date) 2022 2021 (2021) (2020) 0.683110% 0.665190% $ 89,758 $ 115,254 $ 69,867 $ 70,766 2020 (2019) 0.670370% $ 97,547 $ 69,407 162.08% 128.47% 162.87% 140.54% 74.26% 78.58% 69.33% 73.24% Reportings fiscal year (measurement date) 2022 2021 (2021) (2020) 0.68500% 0.67104% $ (3,337) $ (476) $ 69,867 $ 70,766 2020 (2019) 0.67599% $ (187) $ 69,407 2023 (2022) 0.68454% $ (3,821) $ 68,377 (5.59)% (4.78)% (0.67)% (0.27)% 137.79% 130.24% 104.33% 101.62% Reportings fiscal year (measurement date) 2022 2021 (2021) (2020) 0.68350% 0.66804% $ 141 $ 507 $ 69,867 $ 70,766 2020 (2019) 0.67335% $ 439 $ 69,407 2023 (2022) 0.68238% $ 63 $ 68,377 0.09% 0.20% 0.72% 0.63% 95.40% 90.38% 68.01% 72.85% 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 2019 (2018) 0.691230% $ 96,402 $ 67,340 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 $ 54,523 143.16% 162.06% 176.38% 171.87% 168.19% 189.90% 73.40% 69.92% 67.06% 68.35% 69.49% N/A 2019 (2018) 0.69452% $ (250) $ 67,340 2018 (2017) 0.670580% $ (365) $ 64,059 ''2017 - 2014 ''(2016 - 2013) Information Not Available (0.37)% (0.57)% 102.20% 103.57% 2019 (2018) 0.69218% $ 361 $ 67,340 2018 (2017) 0.666740% $ 242 $ 64,059 0.54% 0.38% 77.83% 84.44% ''2017 - 2014 ''(2016 - 2013) Information Not Available 105 $ $ 2014 (2013) 0.656524% 109,143 57,475 CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2023 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: Pension Total pension liability: 2023 (2022) $ 7,385 29,268 - 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) $ City's net pension liability (asset) - ending (a) - (b) (140) - 8,375 - 661 7,193 (19,339) 28,444 403,216 431,660 (16,697) 18,803 384,413 403,216 (14,109) 28,331 356,082 384,413 (13,051) 27,601 328,483 356,084 177,969 3,339 (15,842) $ $ 49,173 $ $ $ City's net pension liability (asset) as a percentage of covered payroll 35,366 139.04% 21,385 3,044 52,247 $ (16,697) (243) 59,736 176,908 236,644 $ 166,572 88.61% Covered payroll 2020 (2019) $ 8,355 24,443 - 7,591 3,539 (19,339) (284) 145,843 236,644 382,487 Plan fiduciary net position as a percentage of the total pension liability Reporting fiscal year (measurement date) 2022 2021 (2021) (2020) $ 7,630 $ 8,002 28,010 26,063 - $ $ 34,313 485.45% $ $ $ (13,051) (157) (10) 15,594 152,491 (130) 167,955 $ 207,505 $ 188,129 46.02% $ 35,635 47.17% $ 582.31% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schdule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 106 16,942 2,880 8,990 (14,109) (188) 55 8,955 167,953 176,908 58.69% $ 17,737 3,159 2,301 $ 36,383 517.08% 2019 (2018) $ 8,012 23,135 - 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 (4,084) - 6,973 8,114 (3,593) 10,446 1,067 - 2,845 19,686 (14,430) 12,633 315,850 328,483 (13,390) 33,833 282,017 315,850 (11,246) 38,141 243,876 282,017 (11,143) 13,864 230,012 243,876 (8,616) 37,702 192,310 230,012 $ $ 10,982 3,351 9,921 $ (14,430) (152) 192 9,864 142,627 152,491 $ 175,992 $ $ $ (13,390) (137) 50 20,218 122,409 142,627 $ 173,223 46.42% $ 36,201 486.15% 13,678 4,549 15,468 $ $ $ (11,246) (105) (2) 7,202 115,207 122,409 $ 159,608 45.16% $ 37,234 465.22% 13,527 4,299 729 $ $ 34,196 466.74% $ 8,221 3,432 12,960 $ (11,143) (99) (6) 6,475 108,732 115,207 $ (8,616) (104) (124) 15,769 92,963 108,732 $ 128,669 $ 121,280 43.40% $ 9,691 4,009 4,023 $ 47.24% $ 33,350 47.27% $ 385.81% 107 31,815 381.20% 2014 (2013) 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, 2023 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: OPEB Total OPEB liability: 2023 (2022) $ 142 409 - 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) $ City's net OPEB liability (asset) - ending (a) - (b) Reporting fiscal year (measurement date) 2022 2021 (2021) (2020) $ 154 $ 160 438 443 - (242) 118 (742) - (322) - (950) 76 (233) 194 5,576 5,770 (239) (389) 5,965 5,576 (280) 1 5,964 5,965 (296) (583) 6,548 5,965 $ $ $ 134 10 (267) (233) (5) (361) 6,814 6,453 $ (683) Plan fiduciary net position as a percentage of the total OPEB liability $ City's net OPEB liability (asset) as a percentage of covered payroll 35,366 (1.93)% $ $ $ 160 11 1,474 (239) (6) 1,400 5,414 6,814 $ (1,238) 111.85% Covered payroll 2020 (2019) $ 106 481 - $ 186 8 68 (280) (6) (24) 5,438 5,414 $ 179 5 276 (296) (5) 159 5,150 130 5,439 $ 551 $ 526 122.20% $ 34,313 (3.61)% $ $ 90.77% $ 35,635 91.18% $ 1.55% 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 36,383 1.45% 2019 (2018) $ 102 467 - 2018 (2017) $ 119 464 11 (127) - 211 (359) (293) 149 6,399 6,548 (359) 87 6,312 6,399 $ $ $ $ $ 75 1 343 (293) (5) 1 122 5,028 5,150 $ 202 541 (359) (5) 379 4,649 5,028 $ 1,398 $ 1,371 78.65% $ 36,201 3.86% 2017 - 2014 (2016 - 2013) Information Not available 78.58% $ 37,234 3.68% 109 CITY OF GLENDALE, ARIZONA Schedule of changes in the City's pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2023 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: Pension Total pension liability: 2023 (2022) $ 4,979 18,119 - 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) $ City's net pension liability (asset) - ending (a) - (b) 6,137 - 4,174 - (4,945) 3,704 (10,388) 13,036 248,417 261,453 (11,957) 15,750 232,667 248,417 (8,309) 16,484 216,183 232,667 (8,883) 9,994 206,190 216,184 87,874 1,875 (9,728) $ $ 26,440 $ $ $ City's net pension liability (asset) as a percentage of covered payroll 21,533 112.78% 11,644 2,057 36,833 $ (11,957) (172) 38,405 127,151 165,556 $ 82,861 89.89% Covered payroll 2020 (2019) $ 4,831 15,287 - (2,199) 2,525 (10,389) (175) 69,457 165,556 235,013 Plan fiduciary net position as a percentage of the total pension liability Reporting fiscal year (measurement date) 2022 2021 (2021) (2020) $ 4,680 $ 4,791 16,890 15,828 - $ $ 20,625 401.75% $ $ $ (8,883) (113) 8,319 114,265 122,584 $ 105,515 $ 93,600 54.65% $ 20,122 56.70% $ 524.38% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schdule is intended to show information for ten years. Additional years' information will be displayed as it becomes available 110 9,335 1,504 6,476 (8,309) (133) 5 4,569 122,583 127,152 66.64% $ 9,360 2,004 1,642 $ 22,868 409.31% 2019 (2018) $ 4,963 14,302 - 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 (536) - 787 5,437 (2,923) 6,345 (823) - 1,452 9,623 (6,668) 12,061 194,129 206,190 (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 $ $ 6,023 2,050 7,405 $ (6,668) (113) 54 8,751 105,514 114,265 $ 91,925 $ $ $ (7,304) (100) 1 13,013 92,501 105,514 $ 88,615 55.42% $ 21,360 430.36% 6,578 2,604 11,234 $ $ $ (8,199) (79) (232) 2,025 90,476 92,501 $ 83,477 54.35% $ 20,840 425.22% 7,339 2,649 547 $ $ 20,296 411.30% $ 4,630 2,265 10,457 $ (5,996) (78) (389) 4,048 86,428 90,476 $ (6,800) (84) 10,468 75,960 86,428 $ 61,916 $ 57,695 52.56% $ 4,942 2,380 3,189 $ 59.37% $ 20,570 301.00% 111 59.97% $ 19,291 299.08% 2014 (2013) 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, 2023 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: OPEB Total OPEB liability: 2023 (2022) 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) $ City's net OPEB liability (asset) - ending (a) - (b) 83 220 - Reporting fiscal year (measurement date) 2022 2021 (2021) (2020) $ 83 $ 82 230 231 174 - (503) 31 (116) 248 2,986 3,234 (108) (141) 3,127 2,986 (122) 365 3,110 3,475 (120) (289) 3,399 3,110 $ $ $ $ (2,144) $ City's net OPEB liability (asset) as a percentage of covered payroll 21,533 (9.96)% $ $ $ 2 2 1,257 (108) (5) 1,148 4,567 5,715 $ (2,729) $ 1 1 58 (122) (5) (67) 4,634 4,567 $ 242 (120) (4) 118 4,516 4,634 $ (1,092) $ (1,524) 191.39% $ 20,625 (13.23)% $ $ 146.07% $ 20,122 149.05% $ (7.16)% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schdule is intended to show information for ten years. Additional years' information will be displayed as it becomes available 112 52 251 - (346) - 166.31% Covered payroll $ 30 31 4 4 (225) (116) (4) (337) 5,715 5,378 Plan fiduciary net position as a percentage of the total OPEB liability 2020 (2019) 22,868 (6.66)% 2019 (2018) $ $ $ 53 238 - 2018 (2017) $ 56 243 3 (29) - (39) (145) (113) 149 3,250 3,399 (153) (35) 3,285 3,250 $ $ $ 300 (113) (4) (1) 182 4,334 4,516 $ 465 (153) (4) 308 4,026 4,334 $ (1,117) $ (1,084) 132.86% $ 21,360 (5.23)% 2017 - 2014 (2016 - 2013) Information Not available 133.36% $ 20,840 (5.20)% 113 CITY OF GLENDALE, ARIZONA Schedule of OPEB Liability-City OPEB plan June 30, 2023 (amounts expressed in thousands) June 30, 2023 Total OPEB Liability-City OPEB plan June 30, 2022 June 30, 2021 Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes $ 25 (934) 109 383 (417) $ 28 (523) 55 317 (123) $ 40 (1,878) 491 (201) (1,548) Total OPEB Liability balance at June 30, 2022 $ 490 $ 613 $ 2,161 Total OPEB Liability balance at June 30, 2023 $ 73 $ 490 $ 613 Covered Employee Payroll $ - $ - $ - Total OPEB Liability as a percentage of covered employee payroll Discount Rate N/A N/A N/A 3.86% 3.69% 1.92% 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. 114 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 $ 71 15 (239) (582) (31) (766) $ 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 $ 2,927 $ 6,377 $ 60,625 $ 64,052 $ 59,504 $ 2,161 $ 2,927 $ 6,377 $ 60,625 $ 64,052 $ - $ - $ - $ 113,677 $ 93,944 N/A N/A N/A 53.3% 68.2% 2.45% 3.13% 3.62% 3.43% 2.85% 115 2015 - 2014 Information Not Available CITY OF GLENDALE, ARIZONA Schedule of the City's pension/OPEB contributions June 30, 2023 (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 contribution 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 contribution 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 contribution as a percentage of coveredpayroll Reporting fiscal year 2022 2021 9,802 $ 9,030 $ 2023 10,420 $ $ 10,420 - $ 9,802 - $ $ 66,935 $ 68,377 $ 15.57% 14.34% 2023 9,030 - $ 8,377 - 69,867 $ 70,766 Reportings fiscal year 2022 2021 171 $ 302 96 $ $ 96 - $ 171 - $ $ 66,935 $ 68,377 $ 2023 2020 8,377 12.92% $ 0.14% $ 122 $ $ 122 - $ 155 - $ $ 66,935 $ 68,377 $ 0.18% 0.23% 2020 $ 345 302 - $ 345 - 69,867 $ 70,766 0.25% 0.43% Reportings fiscal year 2022 2021 155 $ 139 $ 11.84% 0.49% 2020 $ 120 139 - $ 120 - 69,867 $ 70,766 0.20% 0.17% 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. 116 $ 2019 8,111 $ 2018 7,414 $ 2017 7,007 $ 2016 6,472 $ 2015 6,071 $ 2014 5,978 $ 8,111 - $ 7,414 - $ 7,007 - $ 6,472 - $ 6,071 - $ 5,978 - $ 69,407 $ 67,340 $ 64,059 $ 58,301 $ 54,853 $ 54,523 11.69% 11.01% 2019 10.94% 2018 2017 $ 327 $ 385 $ 361 $ 327 - $ 385 - $ 361 - $ 69,407 $ 67,340 $ 64,059 0.47% 0.57% 2019 2018 2017 119 $ 96 $ 91 $ 119 - $ 96 - $ 91 - $ 69,407 $ 67,340 $ 64,059 0.14% 2017 - 2014 Information Not Available 0.56% $ 0.17% 11.10% 2017 - 2014 Information Not Available 0.14% 117 11.07% 10.96% CITY OF GLENDALE, ARIZONA Schedule of the City's pension/OPEB contributions June 30, 2023 (amounts expressed in thousands) PSRS 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 contribution as a percentage of coveredpayroll PSRS 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 contribution as a percentage of coveredpayroll PSRS 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 contribution as a percentage of coveredpayroll PSRS 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 contribution as a percentage of coveredpayroll $ Reporting fiscal year 2022 2021 8,647 $ 18,012 $ 2020 17,500 6,771 - $ 177,717 (169,070) $ 18,012 - $ 17,500 - 38,554 $ 35,366 $ 34,313 $ 35,635 $ 2023 6,771 $ $ 17.56% 502.51% 2023 52.49% Reporting fiscal year 2022 2021 57 $ 155 $ 94 $ $ 94 - $ 57 - $ $ 38,554 $ 35,366 $ 0.24% 0.16% 49.11% 2020 $ 187 155 - $ 187 - 34,313 $ 35,635 0.45% 0.52% $ Reporting fiscal year 2022 2021 5,301 $ 10,077 $ 2020 9,451 4,482 - $ 87,552 (82,251) $ 10,077 - $ 9,451 - 21,927 $ 21,533 $ 20,625 $ 20,122 $ 2023 4,482 $ $ 20.43% 406.59% 2023 48.86% Reporting fiscal year 2022 2021 2 $ $ 4 $ $ 4 - $ 2 - $ 21,927 $ 21,533 0.02% 0.01% 46.97% 2020 3 $ 1 $ 3 - $ 1 - $ 20,625 $ 20,122 0.01% 0.00% 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. 118 $ 2019 16,942 $ 2018 10,982 $ 2017 13,678 $ 2016 13,527 $ 2015 9,691 $ 2014 8,221 $ 17,306 (364) $ 10,828 154 $ 13,678 - $ 13,527 - $ 9,691 - $ 8,221 - $ 36,383 $ 36,201 $ 37,234 $ 34,196 $ 33,350 $ 31,815 47.57% 29.91% 2019 36.74% 2018 2017 $ 179 $ 75 $ 202 $ 183 (4) $ 135 (60) $ 202 - $ 36,383 $ 36,201 $ 37,234 0.50% 0.37% 39.56% 29.06% 25.84% ''2017 - 2014 Information Not Available 0.54% $ 2019 9,335 $ 2018 6,023 $ 2017 6,578 $ 2016 7,339 $ 2015 4,942 $ 2014 4,630 $ 9,435 (100) $ 5,607 416 $ 6,578 - $ 7,339 - $ 4,942 - $ 4,630 - $ 22,868 $ 21,360 $ 20,840 $ 20,296 $ 20,570 $ 19,291 41.26% 26.25% 2019 31.56% 2018 2017 $ - $ - $ - $ - $ - $ - $ 22,868 $ 21,360 $ 20,840 0.00% 0.00% 36.16% 2016 - 2014 Information Not Available 0.00% 119 24.03% 24.00% CITY OF GLENDALE, ARIZONA Notes to Net Pension/OPEB (assets)/liability and contributions June 30, 2023 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 2021 Members with initial membership date before July 1, 2017: Actuarial Valuation 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 Actuarial Assumptions: Investment Rate of Return 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 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) 120 CITY OF GLENDALE, ARIZONA Notes to Net Pension/OPEB (assets)/liability and contributions June 30, 2023 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. 121 City of Glendale, Arizona Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Amounts available for appropriation $ 166,093 24,447 103,309 131 16,206 2,665 177 1,194 314,222 Final $ 166,093 24,447 103,309 131 16,206 2,665 177 1,194 314,222 Variance with Final Budget Actual $ 194,046 24,627 100,700 102 37,564 2,003 4,132 938 364,112 $ 27,953 180 (2,609) (29) 21,358 (662) 3,955 (256) 49,890 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations 58,027 157,237 18,704 26,209 929 6,010 42,003 309,119 61,541 157,246 27,344 26,182 929 5,288 44,238 322,768 55,020 154,486 27,437 22,147 1,065 17,930 278,085 6,521 2,760 (93) 4,035 (136) 5,288 26,308 44,683 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) 341 71,896 (77,353) (5,116) 341 71,896 (77,353) (5,116) 303 40,845 (50,188) (9,040) (38) (31,051) 27,165 (3,924) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 115,245 115,232 122 $ 115,245 101,583 $ 187,759 264,746 $ 72,514 163,163 City of Glendale, Arizona Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original Final 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. Subscription revenue reported on a GAAP basis. Proceeds from disposal of assets. Revenue reported on a GAAP basis. 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 of 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. Subscription based internet technology arrangement. Capital outlay. Internal charges for services provided. Miscellaneous Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 123 Actual 542,832 (187,759) (809) 1,174 (8,840) (10,316) 12,765 (303) 2,568 44,513 (40,845) 50,188 405,168 278,086 157 5 12,765 (393) (8,840) 258 282,038 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Transportation Special Revenue Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Intergovernmental Charges for services Investment income (loss) Miscellaneous Amounts available for appropriation $ 41,418 4,510 87 623 280 46,918 Final $ 41,418 4,510 87 623 280 46,918 Variance with Final Budget Actual $ 47,814 3,620 1,553 4,081 195 57,263 $ 6,396 (890) 1,466 3,458 (85) 10,345 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Contingency Capital outlay Total charges to appropriations 28,360 3,000 5,213 36,573 28,360 2,829 5,213 36,402 27,209 361 27,570 1,151 2,829 4,852 8,832 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) (28,618) (28,618) (28,618) (28,618) 4 5,803 (15,501) (9,694) 4 5,803 13,117 18,924 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 84,062 65,789 $ 84,062 65,960 $ 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. Subscription revenue reported on a GAAP basis. Proceeds from disposal of assets. 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 of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Subscription based internet technology arrangement. Capital outlay. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 124 93,411 113,410 140,980 (93,411) 412 (4) (5,803) 15,501 57,675 27,570 11 407 4 27,992 $ 9,349 47,450 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2023 (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. 125 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2023 (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. 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. III. 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. 126 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT COMBINING STATEMENTS AND SCHEDULES FOR THE FISCAL YEAR ENDED JUNE 30, 2023 City of Glendale, Arizona Budgetary Comparison Schedule Other Construction For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 4,624 4,624 $ 4,624 4,624 CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Public Works Community Services Contingency Capital outlay Total charges to appropriations 1,134 2 4,404 47,145 52,685 2 4,404 48,183 52,589 492 25 63 7,344 7,924 (492) (25) (61) 4,404 40,839 44,665 OTHER FINANCING SOURCES (USES) Long term debt issued Transfer in Transfer out Total other financing sources (uses) 12,589 29,260 (61) 41,788 12,589 29,260 (61) 41,788 (12) (12) (12,589) (29,260) 49 (41,800) 10,322 (575) $ 10,322 (479) $ 9,366 6,054 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 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. Add: Transfers out. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 129 13,978 (9,366) 12 4,624 7,924 7,924 $ (956) 6,533 City of Glendale, Arizona Budgetary Comparison Schedule Municipal Property Corporation Debt Service For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Investment income (loss) Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 4,974 186 5,160 $ 4,974 186 5,160 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations 20 20 6 14 4,255 8,895 13,170 4,255 8,895 13,170 4,255 8,895 13,156 14 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 13,150 13,150 13,150 13,150 13,150 13,150 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 8,098 8,078 $ 8,098 8,078 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 130 9,043 14,197 27,353 (9,043) (13,150) 5,160 13,156 13,156 $ 945 6,119 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. Other Special Revenue Fund This fund accounts for various activities, including the airport, miscellaneous grants, and other recreation programs. 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. 131 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. 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. 132 City of Glendale, Arizona Combining Governmental Balance Sheet Non-Major Governmental Funds Summary by Fund Type June 30, 2023 (amounts expressed in thousands) Special Revenue Funds ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Property tax Accounts Accrued interest Intergovernmental receivable Inventories and prepaid items Restricted cash and investments Lease receivable Total assets $ 46,065 Debt Service Funds $ 23,770 Capital Projects Funds $ 63,867 Total NonMajor Governmental Funds Permanent Funds $ 6,390 $ 140,092 6,028 11 5,938 11 1,818 5,309 65,180 601 25,471 49,842 64 63,931 106 6,496 601 6,198 11 5,938 11 27,289 5,309 185,449 LIABILITIES Vouchers payable Compensated Absences - current Due to other funds Deposits Unearned revenue Matured interest payable Matured bonds payable Total liabilities 3,066 61 1,879 67 22,184 27,257 2 10,359 35,750 46,111 1,314 438 22 1,774 - 4,382 61 2,317 67 22,206 10,359 35,750 75,142 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue Deferred Inflows of Resources- leases Total deferred inflows of resources 191 5,217 5,408 395 395 - 106 106 692 5,217 5,909 FUND BALANCES Fund balances: Nonspendable Restricted Committed Assigned Total fund balances 11 28,048 2,068 2,388 32,515 3,336 3,336 62,157 62,157 6,390 6,390 6,401 93,541 2,068 2,388 104,398 Total liabilities, deferred outflows of resources and fund balances $ 65,180 133 $ 49,842 $ 63,931 $ 6,496 $ 185,449 City of Glendale, Arizona Combining Balance Sheet Non-Major Special Revenue Funds June 30, 2023 (amounts expressed in thousands) Community Development Block Grants ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Accrued interest Intergovernmental receivable Inventories and prepaid items Restricted cash and investments Lease receivable Total assets $ 1,254 LIABILITIES Vouchers payable Compensated Absences - current Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue Deferred Inflows of Resources- leases Total deferred inflows of resources FUND BALANCES Fund balances: Nonspendable Restricted Committed Assigned Total fund balances Total liabilities and fund balances Highway User Revenue $ 23,246 $ 21,565 $ 46,065 5,612 1,380 8,246 23 1,903 25,172 393 11 2,655 11 1,818 5,309 31,762 6,028 11 5,938 11 1,818 5,309 65,180 748 5 400 5,607 6,760 999 35 1,034 1,319 21 1,479 67 16,577 19,463 3,066 61 1,879 67 22,184 27,257 - - 191 5,217 5,408 191 5,217 5,408 1,486 1,486 24,138 24,138 11 2,424 2,068 2,388 6,891 11 28,048 2,068 2,388 32,515 8,246 134 $ Total NonMajor Special Revenue Funds Other Special Revenue $ 25,172 $ 31,762 $ 65,180 City of Glendale, Arizona Combining Balance Sheet Non-Major Debt Service Funds June 30, 2023 (amounts expressed in thousands) General Obligation ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Property tax Restricted cash and investments Total assets $ LIABILITIES Vouchers payable Matured interest payable Matured bonds payable Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 1,359 Highway User $ 43 Excise Tax Revenue Transportation $ 6,377 $ Total NonMajor Debt Service Funds Certificates of Participation 12,949 $ 3,042 $ 23,770 601 19,998 21,958 43 6,377 5,473 18,422 3,042 601 25,471 49,842 2,128 17,870 19,998 - 1 1,192 4,310 5,503 1 4,208 13,570 17,779 2,831 2,831 2 10,359 35,750 46,111 395 - - - - 395 1,565 1,565 43 43 874 874 643 643 211 211 3,336 3,336 21,958 $ 43 135 $ 6,377 $ 18,422 $ 3,042 $ 49,842 City of Glendale, Arizona Combining Balance Sheet Non-Major Capital Projects Funds June 30, 2023 (amounts expressed in thousands) Streets Construction ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Total assets $ LIABILITIES Vouchers payable Due to other funds Unearned revenue Total liabilities FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities and fund balances $ 2,525 Fire and Police Construction $ 2,668 Parks Bond Construction $ Total NonMajor Capital Projects Funds Development Impact Fees - $ 58,674 $ 63,867 64 2,589 2,668 - 58,674 64 63,931 641 22 22 685 577 577 34 416 450 62 62 1,314 438 22 1,774 1,904 1,904 2,091 2,091 (450) (450) 58,612 58,612 62,157 62,157 2,589 $ 2,668 136 $ - $ 58,674 $ 63,931 City of Glendale, Arizona Combining Balance Sheet Non-Major Permanent Funds June 30, 2023 (amounts expressed in thousands) Cemetery ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Total assets $ 106 6,496 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue 106 FUND BALANCES Fund balances: Nonspendable Total fund balances Total liabilities, deferred inflows of resources and fund balances 6,390 6,390 6,390 $ 137 6,496 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, 2023 (amounts expressed in thousands) Special Revenue Funds REVENUES Taxes and special assessments Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Total revenues $ 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 998 45,235 9 1,253 324 93 504 48,416 Debt Service Funds $ 21,878 336 22,214 Capital Projects Funds $ 15,825 137 1,982 268 18,212 Total Non-Major Governmental Funds Permanent Funds $ 259 259 $ 21,878 16,823 45,372 9 1,253 324 2,670 772 89,101 954 4,689 1,968 20,291 15,356 18 - 255 156 2,685 - 972 4,944 1,968 20,447 18,041 3,717 46,975 1,441 35,750 20,718 56,486 (34,272) 20,915 24,011 (5,799) 259 35,750 20,718 24,632 127,472 (38,371) OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) 77 13,889 (4,142) 9,824 34,357 34,357 12,936 (12,604) 332 - 77 61,182 (16,746) 44,513 Net change in fund balances Fund balances - beginning Fund balances - ending 11,265 21,250 32,515 85 3,251 3,336 (5,467) 67,624 62,157 $ 259 6,131 6,390 6,142 98,256 104,398 $ $ 139 $ $ 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, 2023 (amounts expressed in thousands) Community Development Block Grants REVENUES Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Total revenues $ EXPENDITURES Current: General Government Public Safety Public Works Community Services Street Maintenance Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 5,653 130 192 5,975 $ $ 989 18,626 224 73 2 19,914 Total Non-Major Special Revenue Funds Other Special Revenue $ 9 20,956 9 899 251 93 310 22,527 $ 998 45,235 9 1,253 324 93 504 48,416 5,946 9 5,955 15,356 499 15,855 954 4,689 1,968 14,345 3,209 25,165 954 4,689 1,968 20,291 15,356 3,717 46,975 20 4,059 (2,638) 1,441 - 20 10,507 (4,142) 6,385 57 3,382 3,439 77 13,889 (4,142) 9,824 20 1,466 1,486 10,444 13,694 24,138 801 6,090 6,891 11,265 21,250 32,515 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending Highway User Revenue 140 $ $ $ 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, 2023 (amounts expressed in thousands) General Obligation REVENUES Taxes and special assessments Investment income (loss) Total revenues $ EXPENDITURES Current: General Government Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending $ Highway User 21,878 21,878 $ - Excise Tax Revenue Transportation $ - $ Total Non-Major Debt Service Funds Certificates of Participation 329 329 $ 7 7 $ 21,878 336 22,214 8 - 3 6 1 18 17,870 4,255 22,133 (255) - 4,310 2,384 6,697 (6,697) 13,570 8,417 21,993 (21,664) 5,662 5,663 (5,656) 35,750 20,718 56,486 (34,272) - - 6,704 6,704 21,987 21,987 5,666 5,666 34,357 34,357 (255) 1,820 1,565 43 43 7 867 874 323 320 643 10 201 211 85 3,251 3,336 $ 141 $ $ $ $ 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, 2023 (amounts expressed in thousands) Streets Construction REVENUES Licenses and permits Intergovernmental Investment income (loss) Miscellaneous Total revenues $ 137 93 230 Fire and Police Construction $ - Parks Bond Construction $ 175 175 Total Non-Major Capital Projects Funds Development Impact Fees $ 15,825 1,982 17,807 $ 15,825 137 1,982 268 18,212 EXPENDITURES Current: Public Safety Community Services Street Maintenance Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 2,654 10,343 12,997 (12,767) 255 4,090 4,345 (4,345) 105 3,897 4,002 (3,827) 51 31 2,585 2,667 15,140 255 156 2,685 20,915 24,011 (5,799) OTHER FINANCING SOURCES (USES) Transfer in Transfer out Total other financing sources (uses) 12,936 (12,552) 384 (34) (34) (18) (18) - 12,936 (12,604) 332 Net change in fund balances Fund balances - beginning Fund balances - ending (12,383) 14,287 1,904 (4,379) 6,470 2,091 (3,845) 3,395 (450) 15,140 43,472 58,612 (5,467) 67,624 62,157 $ $ 142 $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Permanent Funds For the Year Ended June 30, 2023 (amounts expressed in thousands) Cemetery REVENUES Investment income (loss) Total revenues Net change in fund balances Fund balances - beginning Fund balances - ending $ $ 143 259 259 259 6,131 6,390 City of Glendale, Arizona Budgetary Comparison Schedule Police and Fire Sales Tax Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Amounts available for appropriation $ OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 37,845 37,845 Final $ (40,845) (40,845) $ 16,620 13,620 37,845 37,845 $ (40,845) (40,845) $ 16,620 13,620 44,513 44,513 $ 14 (40,845) (40,831) $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Proceeds from disposal of assets. Add: Transfers out. Total revenues of the police and fire sales tax fund included in the general fund $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 144 Variance with Final Budget Actual 19,686 23,368 23,368 (19,686) (14) 40,845 44,513 - 6,668 6,668 14 14 $ 3,066 9,748 City of Glendale, Arizona Budgetary Comparison Schedule Community Development Block Grants Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Community Services Street Maintenance Capital outlay: Capital outlay Total capital outlay Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 15,073 142 15,215 Final $ 15,073 142 15,215 Variance with Final Budget Actual $ 5,653 192 5,845 $ (9,420) 50 (9,370) 9,768 4,364 9,768 4,364 5,814 - 3,954 4,364 14,132 14,132 9 9 5,823 (9) (9) 8,309 1,678 2,761 $ 1,678 2,761 $ 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. Subscription revenue reported on a GAAP basis. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Subscription based internet technology arrangement. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 145 1,468 1,490 7,313 (1,468) 130 5,975 5,823 2 130 5,955 $ (210) (1,271) City of Glendale, Arizona Budgetary Comparison Schedule Highway User Revenue For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Capital outlay: Contingency Capital outlay Total capital outlay Total charges to appropriations OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 288 18,940 19,228 Final $ 288 18,940 19,228 Variance with Final Budget Actual $ 989 18,626 224 73 2 19,914 $ 701 (314) 224 73 2 686 16,370 16,370 15,350 1,020 1,500 394 1,894 18,264 1,500 394 1,894 18,264 499 499 15,849 1,500 (105) 1,395 2,415 (6,139) (6,139) (6,139) (6,139) 20 10,507 (4,142) 6,385 20 10,507 1,997 12,524 18,614 13,439 $ 18,614 13,439 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Proceeds from disposal of assets. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 146 13,777 24,227 40,076 (13,777) (20) (10,507) 4,142 19,914 15,849 6 15,855 $ (4,837) 10,788 City of Glendale, Arizona Budgetary Comparison Schedule Other Special Revenue For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Licenses and permits Intergovernmental Local Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Amounts available for appropriation $ 6 12,299 50 608 246 5 70,674 83,888 Final $ 6 12,299 50 608 246 5 70,674 83,888 Variance with Final Budget Actual $ 9 20,949 32 771 251 93 175 22,280 $ 3 8,650 (18) 163 5 88 (70,499) (61,608) CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations 2,406 10,336 1,830 13,470 1,405 60,259 11,711 101,417 2,773 12,568 1,830 16,428 6,233 32,730 13,266 85,828 949 4,503 1,970 14,346 3,157 24,925 1,824 8,065 (140) 2,082 6,233 32,730 10,109 60,903 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) 3,486 (29,265) (25,779) 3,486 (29,265) (25,779) 5 3,382 3,387 5 (104) 29,265 29,166 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 63,310 20,002 $ 63,310 35,591 $ 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. Subscription revenue reported on a GAAP basis. Proceeds from disposal of assets. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Salaries payable. Trade in value of vehicle. Subscription based internet technology arrangement. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 147 5,412 6,154 31,079 (5,412) 120 (71) 198 (5) (3,382) 22,527 24,925 (11) 52 199 25,165 $ (57,898) (29,437) City of Glendale, Arizona Budgetary Comparison Schedule General Obligation Debt Service Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 21,838 21,838 Final $ Variance with Final Budget Actual 21,838 21,838 $ 21,878 21,878 $ 40 40 325 325 8 317 17,870 4,255 22,450 17,870 4,255 22,450 17,870 4,255 22,133 317 1,328 716 $ 1,328 716 $ 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. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 148 1,820 1,565 23,698 (1,820) 21,878 22,133 22,133 $ 492 849 City of Glendale, Arizona Budgetary Comparison Schedule Highway User Debt Service Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts TOTAL $ - $ - $ - Variance with Final Budget $ - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 43 43 $ 43 43 $ 43 43 $ Original Final Actual 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. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 149 43 (43) - - - City of Glendale, Arizona Budgetary Comparison Schedule Transportation Debt Service Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations $ OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Final 10 $ Variance with Final Budget Actual 10 $ 3 $ 7 4,310 2,384 6,704 4,310 2,384 6,704 4,310 2,384 6,697 7 6,704 6,704 6,704 6,704 6,704 6,704 - 933 933 $ 933 933 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 150 867 874 7,571 (867) (6,704) - 6,697 6,697 $ (66) (59) City of Glendale, Arizona Budgetary Comparison Schedule Excise Tax Revenue Debt Service Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 329 329 $ 329 329 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations 17 17 6 11 13,570 8,417 22,004 13,570 8,417 22,004 13,570 8,417 21,993 11 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 21,987 21,987 21,987 21,987 21,987 21,987 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 2,608 2,591 $ 2,608 2,591 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 151 320 643 22,636 (320) (21,987) 329 21,993 21,993 $ (2,288) (1,948) City of Glendale, Arizona Budgetary Comparison Schedule Certificates of Participation Debt Service Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 7 7 $ 7 7 CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Debt service: Interest Total charges to appropriations 5 5 1 4 5,662 5,667 5,662 5,667 5,662 5,663 4 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 5,666 5,666 5,666 5,666 5,666 5,666 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 674 673 $ 674 673 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 152 201 211 5,874 (201) (5,666) 7 5,663 5,663 $ (473) (462) City of Glendale, Arizona Budgetary Comparison Schedule Streets Construction Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Miscellaneous Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 137 93 230 $ 137 93 230 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Capital outlay Total charges to appropriations 510 34,989 35,499 480 35,112 35,592 2,654 10,343 12,997 (2,174) 24,769 22,595 OTHER FINANCING SOURCES (USES) Long term debt issued Transfer in Transfer out Total other financing sources (uses) 348 28,052 (139) 28,261 348 28,052 (217) 28,183 12,936 (12,552) 384 (348) (15,116) (12,335) (27,799) 3,193 (4,045) $ 3,193 (4,216) $ 14,225 1,842 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 153 14,839 (14,225) (12,936) 12,552 230 12,997 12,997 $ 11,032 6,058 City of Glendale, Arizona Budgetary Comparison Schedule Fire and Police Construction Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Public Safety Contingency Capital outlay Total charges to appropriations $ OTHER FINANCING SOURCES (USES) Long term debt issued Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 191 412 19,264 19,867 Final $ 13,260 (61) 13,199 $ 6,668 - 191 412 19,264 19,867 $ 13,260 (61) 13,199 $ 6,668 - 255 4,090 4,345 $ (34) (34) $ 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. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 154 Variance with Final Budget Actual 6,470 2,091 6,436 (6,470) 34 - 4,345 4,345 (64) 412 15,174 15,522 (13,260) 27 (13,233) $ (198) 2,091 City of Glendale, Arizona Budgetary Comparison Schedule Parks Bond Construction Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Community Services Capital outlay Total charges to appropriations $ OTHER FINANCING SOURCES (USES) Long term debt issued Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 7,759 7,759 Final $ 8,841 8,841 Variance with Final Budget Actual $ 105 3,722 3,827 $ (105) 5,119 5,014 3,930 (3) 3,927 3,930 (3) 3,927 (18) (18) (3,930) (15) (3,945) 3,266 (566) $ 3,266 (1,648) $ 3,395 (450) $ 129 1,198 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. Donations. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Noncash exchange for capital outlay. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 155 3,377 (3,395) 175 18 175 3,827 175 4,002 City of Glendale, Arizona Budgetary Comparison Schedule Development Impact Fees Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Licenses and permits Investment income (loss) Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 14,715 426 15,141 Final $ 14,715 426 15,141 $ 15,825 1,982 17,807 25 52,794 4,908 57,727 51 118 50,785 7,725 58,679 51 31 2,585 2,667 42,585 (1) $ 42,583 (955) $ 43,472 58,612 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. Total revenues as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 156 Variance with Final Budget Actual 61,279 (43,472) 17,807 2,667 2,667 $ 1,110 1,556 2,666 87 50,785 5,140 56,012 $ 889 59,567 City of Glendale, Arizona Budgetary Comparison Schedule Cemetery Perpetual Care Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Contingency Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 26 26 $ 6,174 6,174 $ 6,148 - 26 26 $ 6,174 6,174 $ 6,148 - 259 259 $ $ 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. Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ Uses/outflows of resources: Total expenditures as reported in the statement of revenues, expenditures, and changes in fund $ balances - governmental funds. 157 Variance with Final Budget Actual 6,131 6,390 6,390 (6,131) 259 - 233 233 6,174 6,174 $ (17) 6,390 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. 158 City of Glendale, Arizona Combining Statement of Net Position Non-Major Proprietary Fund-Business Type Activities June 30, 2023 (amounts expressed in thousands) Solid Waste ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts receivable Allowance for uncollectibles Intergovernmental 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 $ 246 DEFERRED OUTFLOWS OF RESROUCES Amounts related to pensions and OPEB Total deferred outflows of resources LIABILITIES Current liabilities: Vouchers payable Compensated absences Unearned revenue Due to other funds Intergovernmental payable Deposits Subscription - due within one year Total current liabilities Noncurrent liabilities: Compensated absences Net pension & OPEB liabilities Other long term debt Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Amounts related to pensions and OPEB Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: OPEB benefits Unrestricted Total net position $ 159 Total Non-Major Enterprise Funds Housing $ 2,852 $ 3,098 3,676 (659) 3,263 13 245 48 3,158 3,689 (659) 245 48 6,421 222 58 280 25,099 (12,474) 12,625 12,847 16,110 16,364 (11,953) 4,411 4,469 7,627 41,463 (24,427) 17,036 17,316 23,737 1,019 1,019 317 317 1,336 1,336 272 312 2 102 208 896 159 20 11 9 57 256 431 332 11 9 2 159 208 1,152 238 6,340 654 7,232 8,128 180 1,948 48 2,176 2,432 418 8,288 702 9,408 10,560 434 434 152 152 586 586 12,625 4,411 17,036 222 (4,280) 8,567 $ 58 891 5,360 280 (3,389) 13,927 $ 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, 2023 (amounts expressed in thousands) Solid Waste Operating Revenues Intergovernmental Container service Curb service Miscellaneous Other fees Total operating revenues $ 6,396 19,073 39 1 25,509 Total Non-Major Enterprise Funds Housing $ 13,249 1 2,997 16,247 $ 13,249 6,396 19,073 40 2,998 41,756 Operating Expenses Housing Solid Waste Administrative and general Amortization and depreciation Total operating expenses Operating income (loss) 19,733 25 2,224 21,982 3,527 16,520 272 16,792 (545) 16,520 19,733 25 2,496 38,774 2,982 Nonoperating Revenues (Expenses) Investment income Interest expense 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 (25) 56 31 3,558 210 3,768 4,799 8,567 $ 38 38 (507) 692 453 638 4,722 5,360 $ 38 (25) 56 69 3,051 692 663 4,406 9,521 13,927 $ 160 City of Glendale, Arizona Combining Statement of Cash Flows Non-Major Proprietary Funds - Business-Type Activities For the Year June 30, 2023 (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 $ 24,924 (11,534) (906) (7,187) 5,297 Housing $ Total 15,992 (16,487) 116 (379) $ 40,916 (11,534) (17,393) (7,071) 4,918 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Advances to/due from other funds Net cash provided (used) by noncapital financing activities 210 (1,564) (1,354) 453 453 663 (1,564) (901) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets Interest payments on obligations Acquisition of capital assets and rights Net cash provided (used) by capital and related financing activities (25) (3,687) (3,712) 23 23 (25) (3,664) (3,689) $ 231 15 246 $ 38 38 135 2,717 2,852 $ 38 38 366 2,732 3,098 $ 3,527 $ (545) $ 2,982 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 year 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 Intergovernmental payable Deposits Compensated absences Unearned revenue Other long term liabilities Net cash provided (used) by operating activities Noncash investing, capital and financing activities Change in subscription based information technology arrangements payable 161 2,224 272 2,496 $ (596) (27) 1,194 401 (1,485) (13) (1) 11 62 5,297 $ (5) (126) (6) 300 102 (374) (33) 69 (62) 6 20 3 (379) $ (601) (126) (33) 1,494 503 (1,859) (33) 56 (63) 17 82 3 4,918 $ 862 $ 26 $ 888 City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Metered water sales Sewer service charges Charges for services Miscellaneous Other fees Long term debt issued Amounts available for appropriation $ 63,902 42,728 82 6,750 2,894 26,000 142,356 Final $ 63,902 42,728 82 6,750 2,894 26,000 142,356 Variance with Final Budget Actual $ 59,231 42,768 82 1,592 4,496 108,169 $ (4,671) 40 (5,158) 1,602 (26,000) (34,187) CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Water Sewer Administrative and general Total charges to appropriations 2,000 39,057 20,688 11,673 73,418 927 41,235 20,318 11,644 74,124 41,289 19,397 11,249 71,935 927 (54) 921 395 2,189 NONOPERATING REVENUES (EXPENSE) Impact fees Investment income Principal Interest expense Gain/(loss) on disposal of assets Capital Outlay Total nonoperating revenues (expenses) Transfer in Transfer out 3,247 297 (18,595) (7,495) (75,451) (97,997) 817 (274) 3,247 297 (18,595) (7,495) (74,747) (97,293) 817 (274) 3,348 2,480 (18,595) (7,495) 4 (34,041) (54,299) 817 (226) 101 2,183 4 40,706 42,994 48 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 61,930 33,414 162 $ 61,930 33,412 $ 62,861 45,387 $ 931 11,975 City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original Final Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Revenues offset directly by bad debt expense on budgetary basis. Capital contributed. Proceeds from equipment disposals. Gain on disposal of assets. Gain on Joint Venture. Internal staff and administrative charges reported as revenue only on budgetary basis. Lease income. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Bad debt expense. Capital outlay expenditure. Other non-capital expenditure. Accrued payroll expense. Amortization and depreciation expense. Subscription based internet technology arrangement. Principal payments on long-term obligations. Pension expense. OPEB expense. Interest expense. Indirect cost allocation. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 163 Actual 177,453 (62,861) 81 3,375 (4) 8 1,446 (82) 19 (817) 226 118,844 132,066 81 (34,041) (288) 418 32,584 (198) (18,595) 498 (224) (4,067) (82) 108,152 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Landfill user fees Charges for services Miscellaneous Recycling sales Amounts available for appropriation $ 13,246 442 57 13,745 Final $ 13,246 442 57 13,745 Variance with Final Budget Actual $ 13,170 431 22 53 13,676 $ (76) (11) (35) 53 (69) CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Landfill Administrative and general Total charges to appropriations 500 10,744 40 11,284 500 10,744 40 11,284 9,542 2 9,544 500 1,202 38 1,740 NONOPERATING REVENUES (EXPENSE) Investment income Interest expense Gain/(loss) on disposal of assets Capital Outlay Total nonoperating revenues (expenses) Transfer in Transfer out 87 (446) (16,504) (16,863) 1,102 (26) 87 (446) (16,504) (16,863) 1,102 (26) 526 (446) 40 (7,942) (7,822) 1,102 (44) 439 40 8,562 9,041 (18) 8,263 (5,063) $ 8,263 (5,063) $ 13,043 10,411 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 164 $ 4,780 15,474 City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original Final Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Internal staff and administrative charges reported as revenue only on budgetary basis. Revenues offset directly by bad debt expense on budgetary basis. Less: Transfers in. Add: Transfers out. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Bad debt expense. Capital outlay expenditures. Accrued payroll expense. Landfill post-closure expense. Amortization and depreciation expense. Subscription based internet technology arrangement. Principal payments on long-term obligations. Interest expense. Aggregated capital outlay expenditures Pension expense. OPEB expense. Internal staff and administrative charges reported as revenue only on budgetary basis. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 165 Actual 28,343 (13,043) (431) 3 (1,102) 44 13,814 17,932 3 (7,942) 23 940 2,298 (78) (270) (103) (475) 84 (35) (431) 11,946 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Solid Waste Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Container service Curb service Miscellaneous Other fees Amounts available for appropriation $ 5,723 18,273 306 24,302 Final $ Variance with Final Budget Actual 5,723 18,273 306 24,302 $ 6,396 19,032 39 1 25,468 $ 673 759 (267) 1 1,166 CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Solid Waste Administrative and general Total charges to appropriations 200 20,065 28 20,293 200 20,065 28 20,293 20,097 25 20,122 200 (32) 3 171 NONOPERATING REVENUES (EXPENSE) Investment income Gain/(loss) on disposal of assets Capital Outlay Total nonoperating revenues (expenses) Transfer in 17 49 (4,579) (4,513) 210 17 49 (4,579) (4,513) 210 15 (3,179) (3,164) 210 (17) (34) 1,400 1,349 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 149 (145) $ 149 (145) $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Revenues offset directly by bad debt expense on budgetary basis. Proceeds from disposal of capital assets. Gain on disposal of assets. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Bad debt expense. Capital outlay. Accrued payroll expense. Depreciation expense. Pension expense. OPEB expense. Subscription based internet technology arrangement. Total expenses as reported in the combining statement of revenues, expenses, $ and changes in fund net position. 166 737 3,129 26,430 (737) 41 (15) 56 (210) 25,565 23,301 41 (3,372) 61 2,025 147 (65) (131) 22,007 $ 588 3,274 City of Glendale, Arizona Budgetary Comparison Schedule Housing Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Miscellaneous Other fees Amounts available for appropriation $ - CHARGES TO APPROPRIATIONS (OUTFLOWS) Housing Total charges to appropriations NONOPERATING REVENUES (EXPENSE) Investment income Capital Outlay Total nonoperating revenues (expenses) Capital contributions Transfer in Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Final $ Variance with Final Budget Actual - $ 13,249 1 2,997 16,247 $ 13,249 1 2,997 16,247 23 23 23 23 16,500 16,500 (16,477) (16,477) (430) (430) 453 (430) (430) 453 38 38 692 453 38 430 468 692 - 805 805 $ 805 805 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Capital Contributions Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Depreciation expense. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, $ and changes in fund net position. 167 6,957 7,887 24,387 (6,957) (692) (453) 16,285 16,500 272 29 (9) 16,792 $ 6,152 7,082 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 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. 171 City of Glendale, Arizona Combining Statement of Net Position Non-Major Internal Service Funds June 30, 2023 (amounts expressed in thousands) Risk Management ASSETS Current assets: Equity in pooled cash and investments Receivables: Accounts receivable Intergovernmental 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 Amounts related to pensions and OPEB Total deferred outflows of resources LIABILITIES Current liabilities: Vouchers payable Compensated absences Estimated claims payable Interest payable Subscription - due within one year Total current liabilities Noncurrent liabilities: Compensated absences Net pension & OPEB liabilities Other long term debt Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Amounts related to pensions and OPEB Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: OPEB benefits Unrestricted Total net position $ 14,476 Workers' Compensation $ 18,757 Employee Benefits $ Fleet Services 20,160 $ 501 Total NonMajor Internal Service Funds Technology $ 13,809 $ 67,703 8 14,484 18,757 82 20,242 7 27 83 618 13,809 89 27 91 67,910 9 150 8 1,425 - 95 139 1,575 251 616 (123) 493 502 14,986 158 18,915 1,425 21,667 758 (588) 170 265 883 17,577 (7,334) 10,243 10,382 24,191 18,951 (8,045) 10,906 12,732 80,642 57 57 19 19 - 923 923 777 777 1,776 1,776 28 35 7,085 11 117 7,276 83 47 15,243 15,373 2,148 7,541 9,689 424 222 82 728 420 407 61 2,611 3,499 3,103 711 29,869 72 2,810 36,565 36 79 372 487 7,763 68 52 120 15,493 9,689 269 2,998 56 3,323 4,051 383 917 2,071 3,371 6,870 756 4,046 2,499 7,301 43,866 3 3 (33) (33) - 689 689 70 70 729 729 493 - - 170 10,243 10,906 9 6,775 7,277 8 3,466 3,474 11,978 11,978 95 (3,199) (2,934) $ 139 7,646 18,028 251 26,666 37,823 $ 172 $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Internal Service Funds For the Year Ended June 30, 2023 (amounts expressed in thousands) Risk Management OPERATING REVENUES Self insurance premium Charges for services Miscellaneous Other fees Total operating revenues $ 11,514 344 11,858 Workers' Compensation $ 11,292 11,292 Employee Benefits $ 38,524 19 38,543 Fleet Services $ 12,537 12,537 Total Internal Service Funds Technology $ 16,642 9 16,651 $ 61,330 29,179 363 9 90,881 OPERATING EXPENSES Administrative and general Insurance claims and premiums Amortization and depreciation Total operating expenses Operating income (loss) 4,086 1,290 123 5,499 6,359 1,041 7,960 9,001 2,291 200 32,676 32,876 5,667 12,562 87 12,649 (112) 11,129 3,107 14,236 2,415 29,018 41,926 3,317 74,261 16,620 NONOPERATING REVENUES (EXPENSES) Investment income Interest expense Gain/(loss) on disposal of assets Total nonoperating revenues (expenses) Change in net position Total net position - beginning Total net position - ending 475 (11) 464 6,823 454 7,277 664 664 2,955 519 3,474 565 565 6,232 5,746 11,978 (4) (4) (116) (2,818) (2,934) 304 (97) 1 208 2,623 15,405 18,028 2,008 (112) 1 1,897 18,517 19,306 37,823 $ $ 173 $ $ $ $ City of Glendale, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2023 (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 Workers' Compensation $ $ 11,858 (4) (3,685) (1,410) (329) 6,430 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets and rights (127) Interest paymetns on obligations Net cash provided (used) by capital and related financing activities (127) 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 year 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 Noncash investing, capital and financing activities Change in subscription based information technology arrangements payable 11,293 (6) (684) (3,917) (368) 6,318 Employee Benefits $ Fleet Services 38,553 19 (30,313) 8,259 $ 12,511 (524) (9,213) (2,838) (64) Technology $ 16,651 (2,567) (3,628) (4,645) 5,811 Total $ 90,866 (3,082) (17,210) (35,640) (8,180) 26,754 - - (80) (4) (84) (4,189) (36) (4,225) (4,396) (40) (4,436) $ 565 565 8,824 11,336 20,160 $ (148) 649 501 $ 304 304 1,890 11,919 13,809 $ 2,008 2,008 24,326 43,377 67,703 $ 5,667 $ (112) $ 2,415 $ 16,620 $ 475 475 6,778 7,698 14,476 $ 664 664 6,982 11,775 18,757 $ 6,359 $ 2,291 123 - - 87 3,107 3,317 $ (1) 67 18 (79) 34 17 12 (120) 6,430 $ (2) 48 20 (64) (19) 1 4,043 6,318 $ 29 (452) 3,015 8,259 $ (7) (19) (11) 478 161 (595) 95 (218) 77 (64) $ (17) 795 267 (981) 176 49 5,811 $ 22 (19) (31) 1,388 466 (1,719) 129 (496) 139 6,938 26,754 $ 489 $ - $ - $ 138 $ 4,682 $ 5,309 The notes to financial statements are an integral part of this statement. 174 City of Glendale, Arizona Budgetary Comparison Schedule Risk Management Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Self insurance premium Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Administrative and general Insurance claims and premiums Total charges to appropriations 11,514 11,514 $ $ Variance with Final Budget Actual 11,514 11,514 $ 11,514 344 11,858 $ 344 344 1,000 4,507 7,074 12,581 1,000 4,507 7,074 12,581 4,164 1,410 5,574 1,000 343 5,664 7,007 - - 475 475 475 475 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 5,234 4,167 $ 5,234 4,167 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Change in compensated absences liability. Change in estimated claims payable and prepaids. Insurance and claims recorded GAAP basis only. Pension contributions that were reclassified as deferred outflows of resources. Subscription based internet technology arrangement. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 175 7,689 14,448 20,022 (7,689) 12,333 5,574 11 34 (120) 5 6 5,510 $ 2,455 10,281 City of Glendale, Arizona Budgetary Comparison Schedule Workers' Compensation Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Self insurance premium Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Administrative and general Insurance claims and premiums Total charges to appropriations 11,333 11,333 $ $ Variance with Final Budget Actual 11,333 11,333 $ 11,292 11,292 $ (41) (41) 1,000 1,485 9,059 11,544 1,000 1,485 9,059 11,544 1,036 3,917 4,953 1,000 449 5,142 6,591 26 26 26 26 664 664 638 638 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 9,902 9,717 $ 9,902 9,717 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Insurance and claims recorded gaap basis only. Pension contributions that were reclassified as deferred outflows of resources. Change in compensated absences liability. OPEB Expense Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 176 11,823 18,826 23,779 (11,823) 11,956 4,953 4,043 6 1 (2) 9,001 $ 1,921 9,109 City of Glendale, Arizona Budgetary Comparison Schedule Employee Benefits For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Self insurance premium Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Administrative and general Insurance claims and premiums Total charges to appropriations 34,335 34,335 $ $ Variance with Final Budget Actual 34,335 34,335 $ 38,524 19 38,543 $ 4,189 19 4,208 406 33,929 34,335 406 33,929 34,335 200 29,660 29,860 206 4,269 4,475 - - 565 565 565 565 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 12,254 12,254 $ 12,254 12,254 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Insurance and claims recorded gaap basis only. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 177 10,271 19,519 49,379 (10,271) 39,108 29,860 3,016 32,876 $ (1,983) 7,265 City of Glendale, Arizona Budgetary Comparison Schedule Fleet Services Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Charges for services Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Administrative and general Total charges to appropriations NONOPERATING REVENUES (EXPENSE) Capital Outlay Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 12,759 475 13,234 $ Variance with Final Budget Actual 12,759 475 13,234 $ 12,537 12,537 $ (222) (475) (697) 12,984 12,984 13,059 13,059 12,537 12,537 522 522 (250) (250) (175) (175) - 175 175 - $ $ - $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: Beginning fund balance restated Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Change in compensated absences liability Amortization and depreciation expense. Pension contributions that were reclassified as deferred outflows of resources. OPEB Expense Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 178 156 156 12,693 (156) 12,537 12,537 76 7 47 (14) 12,653 $ 156 156 City of Glendale, Arizona Budgetary Comparison Schedule Technology Fund For the Year Ended June 30, 2023 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Charges for services Other fees Amounts available for appropriation $ 17,340 17,340 Final $ 17,340 17,340 Variance with Final Budget Actual $ 16,642 9 16,651 $ (698) 9 (689) CHARGES TO APPROPRIATIONS (OUTFLOWS) Administrative and general Total charges to appropriations 20,743 20,743 20,961 20,961 14,524 14,524 6,437 6,437 NONOPERATING REVENUES (EXPENSE) Investment income Capital Outlay Total nonoperating revenues (expenses) (2,735) (2,735) (2,517) (2,517) 304 (668) (364) 304 1,849 2,153 3,672 (2,466) $ 3,672 (2,466) $ 11,655 13,418 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Miscellaneous Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Differences - budget to GAAP: Capital outlay expenditure. Amortization and depreciation expense. Loss on disposal of assets. Change in compensated absences liability Pension contributions that were reclassified as deferred outflows of resources. Subscription based internet technology arrangement. OPEB Expense Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 179 28,610 (11,655) 1 16,956 15,192 (1,050) 340 (1) 50 78 (261) (15) 14,333 $ 7,983 15,884 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2023 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (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. 111 112 113 114 115 100 121 122 124 125 126 126.1 126.2 127 128 128.1 129 120 131 132 135 142 143 143.1 144 145 150 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 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 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 Housing Choice Vouchers Project Total $ 1,330,708 57,332 1,388,040 PHC Public Housing CARES Act Funding $ 1,342,731 47,309 1,390,040 $ Resident Opportunity and Supportive Services - $ EHV Emergency Housing Voucher HCV CARES Act Funding - $ - $ Eliminations - $ Total - $ 2,673,439 47,309 57,332 2,778,080 3,206 6,330 4,841 (227) 8,254 (8,254) 14,150 47,364 44,183 2,005 4,536 (4,536) 93,552 - 884 884 - - - 51,454 44,183 8,335 9,377 (4,763) 8,254 (8,254) 108,586 6,365 43,651 (2,183) 149,608 1,599,631 1,483,592 - 884 - - - 6,365 43,651 (2,183) 149,608 3,084,107 183 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 2 of 7 (continued) Balance Sheet Line Item No. Account Description 161 162 163 164 165 166 167 168 160 171 172 173 174 176 180 190 200 290 Non-current assets: Capital assets: Land Buildings Furniture, equipment &machinery - dwellings Furniture, equipment & machinery -administration Leasehold improvements Accumulated depreciation Construction in progress Infrastructure Total capital assets, net of accumulated depreciation Notes, loans, & mortgages receivable - non-current Notes, loans, & morgages 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 Housing Choice Vouchers Project Total 135,533 11,441,159 617,481 203,309 2,402,337 (11,749,449) 1,310,304 4,360,674 23,347 4,384,021 5,983,652 126,964 $ 6,110,616 $ $ 29,796 9,293 57,332 11,230 107,651 PHC Public Housing CARES Act Funding $ Resident Opportunity and Supportive Services 149,998 102,908 (203,356) 49,550 35,020 84,570 1,568,162 190,444 1,758,606 $ - 33,777 10,706 44,483 - 184 $ $ $ 884 884 884 884 EHV Emergency Housing Voucher HCV CARES Act Funding $ $ - - $ $ Eliminations - 30,334 30,334 $ $ Total - 135,533 11,591,157 617,481 306,217 2,402,337 (11,952,805) 1,310,304 4,410,224 58,367 4,468,591 7,552,698 317,408 $ 7,870,106 - $ 94,791 19,999 57,332 11,230 183,352 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 3 of 7 (continued) Balance Sheet Line Item No. 351 352 353 354 355 356 357 350 300 400 508.4 511.4 512.4 513 600 Account Description 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- non current Loan liability - noncurrent FASB 5 liabilities Accrued pension and OPEB liabilities Total noncurrent liabilities Total liabilities Deferred inflow of resources 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 $ PHC Public Housing CARES Act Funding Resident Opportunity and Supportive Services EHV Emergency Housing Voucher HCV CARES Act Funding Project Total Housing Choice Vouchers 83,635 779,023 862,658 970,309 60,733 47,309 96,357 1,168,534 1,312,200 1,356,683 91,101 - 884 - - 30,334 - - 47,309 179,992 1,947,557 2,174,858 2,358,210 151,834 4,360,674 718,900 5,079,574 6,110,616 49,550 261,272 310,822 1,758,606 - 884 - (30,334) (30,334) - $ - 4,410,224 949,838 5,360,062 7,870,106 $ $ $ $ $ Eliminations Total $ (continued) 185 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 4 of 7 (continued) Income Statement Line Item No. Account Description 70300 70400 70500 70600 70610 70710 70720 70730 70740 70750 70700 70800 71100 71200 71300 71310 71400 71500 71600 72000 70000 REVENUE: Net tenant rental revenue Tenant revenue - other Total tenant revenue HUD PHA operating revenue Capital grants Management fee Asset management fee Bookkeeping fee Front line service fee Other fees Total fee revenue 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 Housing Choice Vouchers Project Total $ $ 516,431 15,758 532,189 783,847 691,746 19,141 1,787 2,028,710 PHC Public Housing CARES Act Funding $ $ 11,362,947 18,495 1,464 2,323,174 13,706,080 186 $ $ Resident Opportunity and Supportive Services - $ $ 68,076 68,076 EHV Emergency Housing Voucher HCV CARES Act Funding $ $ - $ $ 1,034,370 139,685 1,174,055 Eliminations $ $ Total - $ 516,431 15,758 532,189 13,249,240 691,746 37,636 1,464 2,464,646 $ 16,976,921 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 5 of 7 (continued) Income Statement Line Item No. 91100 91200 91300 91310 91400 91500 91600 91700 91800 91810 91900 91000 92000 92100 92200 92300 92400 92500 93100 93200 93300 93400 93500 93600 93700 93800 93000 94100 94200 94300 94500 94000 Account Description 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 Assett management fee Tenant services - salaries Relocation costs Employee benefit contributions - tenant services Tenant services - other Total Tenant services Water Electricity Gas Fuel Labor Sewer Employee benefit contributions - utilities Other utilities expense Total utilities Ordinary maintenance and operations - labor Ordinary maintenance and operations - materials & other Ordinary maintenance and operations - contract costs Employee benefit contributions - ordinary maintenance Total maintenance Housing Choice Vouchers Project Total $ $ 237,881 191,894 16,219 173 115,195 561,362 87,988 18,893 2,039 47,056 155,976 306,635 126,201 177,837 94,762 705,435 PHC Public Housing CARES Act Funding $ $ 591,574 321,885 24,286 1,800 134,796 1,074,341 2,704 2,704 $ $ Resident Opportunity and Supportive Services - $ $ 59,697 8,379 68,076 - EHV Emergency Housing Voucher HCV CARES Act Funding $ $ - $ $ 77,954 29,973 939 73,015 181,881 - Eliminations $ $ Total - $ $ 907,409 543,752 41,444 1,973 323,006 1,817,584 59,697 8,379 68,076 87,988 18,893 2,039 47,056 155,976 306,635 128,905 177,837 94,762 708,139 (continued) 187 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 6 of 7 (continued) Income Statement Line Item No. 95100 95200 95300 95500 95000 96110 96120 96130 96140 96100 96200 96210 96300 96400 96500 96600 96800 96000 96710 96720 96730 96700 96900 97000 97100 97200 97300 97350 97400 97500 97600 97700 97800 90000 Account Description Protective services - labor Protective services - other contract costs Protective services - other Employee benefit contributions - protective services Total protective services Property insurance Liability insurance Workmen's compensation All other insurance Total insurance premiums 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 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 Total operating expenses Excess of operating revenue over operating expenses Extraordinary maintenance Casualty losses - non-capitalized Housing assistance payments HAP Portability-in Depreciation expense Fraud losses Capital outlays - governmental funds Debt principal payment - governmental funds Dwelling units rent expense Total expenses Housing Choice Vouchers Project Total $ $ 71,307 21,826 93,133 9,055 9,055 1,524,961 503,749 5,994 267,484 1,798,439 PHC Public Housing CARES Act Funding $ $ 47,538 14,551 62,089 4,345 4,345 1,143,479 12,562,601 10,509,492 2,204,267 4,061 13,861,299 188 $ $ Resident Opportunity and Supportive Services - $ $ 68,076 68,076 EHV Emergency Housing Voucher HCV CARES Act Funding $ $ - $ $ 181,881 992,174 879,489 1,061,370 Eliminations $ $ Total - $ 71,307 47,538 36,377 155,222 4,345 9,055 13,400 2,918,397 14,058,524 5,994 11,388,981 2,204,267 271,545 $ 16,789,184 (continued) City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2023 (rounded to nearest dollar) 7 of 7 (continued) Income Statement Line Item No. 10010 10020 10030 10040 10050 10060 10070 10080 10091 10092 10093 10094 10100 10000 Account Description OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out 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 11020 11030 11040 11050 11060 11070 11080 11090 11100 11170 11180 11190 11210 11270 11610 11620 11630 11640 11650 11660 13510 13901 MEMO ACCOUNT INFORMATION Required annual debt principal payments Beginning equity 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 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 Housing Choice Vouchers Project Total $ $ $ 14,785 $ (14,785) 212,563 212,563 442,834 $ 4,636,740 1,830 1,799 1,320,553 691,746 - PHC Public Housing CARES Act Funding $ 240,000 240,000 84,781 $ 226,041 310,822 11,054 11,054 - $ 189 $ Resident Opportunity and Supportive Services - $ - $ $ EHV Emergency Housing Voucher HCV CARES Act Funding - $ - $ $ - $ - $ $ 112,685 Eliminations $ Total $ $ - - $ (143,019) 702 702 - - $ $ 14,785 (14,785) 452,563 452,563 640,300 4,719,762 310,822 13,586 13,555 1,320,553 691,746 - City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT STATISTICAL SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2023 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. 194-201 Revenue Capacity These schedules contain information to help the reader assess the City’s local revenue source, the property tax and sales tax. 202-206 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. 208-215 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. 216-218 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. 219-223 193 City of Glendale, Arizona Net Position by Component Last Ten Fiscal Years (amounts expressed in thousands) Schedule 1 2023 Government activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position $ Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position $ 584,359 334,618 (112,674) 2022* $ 488,913 296,434 (136,260) 2021 $ 471,198 200,500 (162,270) 2020 $ 465,366 170,205 (193,716) 2019 $ 416,078 184,654 (215,449) 806,303 649,087 509,428 441,855 385,283 485,518 47,567 2,912 439,039 45,051 30,022 397,187 37,992 39,451 362,679 33,896 32,618 313,704 32,943 53,699 535,997 514,112 474,630 429,193 400,346 1,069,877 382,185 (109,762) 927,952 341,485 (106,238) 868,385 238,492 (122,819) 828,045 204,101 (161,098) 729,782 217,597 (161,750) 1,342,300 $ 1,163,199 Note - * Net position has been restated. See Note XVII. 194 $ 984,058 $ 871,048 $ 785,629 2018 $ $ 451,826 185,396 (246,697) 2017 $ 471,979 157,251 (278,767) 2016 $ 456,001 163,592 (239,670) 2015 $ 456,897 168,714 (240,749) 2014 $ 448,083 161,027 (277,093) 390,525 350,463 379,923 384,862 332,017 280,920 27,550 78,272 267,111 22,897 83,920 256,488 21,576 96,300 253,134 24,090 92,357 256,164 22,300 123,699 386,742 373,928 374,364 369,581 402,163 732,746 212,946 (168,425) 739,090 180,148 (194,847) 712,489 185,168 (143,370) 710,031 192,804 (148,392) 704,247 183,327 (153,394) 777,267 $ 724,391 $ 754,287 $ 754,443 $ 734,180 195 City of Glendale, Arizona Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) Schedule 2 2023 Expenses Governmental activities: General government Public safety Public works Community services Community environment Street maintenance Interest on long-term debt Total governmental activities expenses Business-type activities: Water and sewer Landfill Solid Waste Housing Total business-type activities expenses Total primary government expenses Program revenues Governmental activities: Charges for services: General government Public safety Public works Community services Community environment Street maintenance Operating grants and contributions Capital grants and contributions Total governmental activities program revenues $ $ $ 67,766 173,375 42,500 47,954 57,884 25,766 415,245 106,533 11,620 21,200 16,646 155,999 571,244 37,663 4,730 4,315 6,181 1,736 68,923 33,139 156,687 2022* $ $ $ 26,904 157,622 33,267 64,057 70,250 12,860 364,960 92,854 11,189 20,702 15,135 139,880 504,840 30,054 5,201 4,411 3,187 95 78,929 34,752 156,629 2021 $ $ $ 47,850 166,243 30,451 35,751 50,283 22,056 352,634 90,604 11,319 19,310 14,182 135,415 488,049 23,415 3,860 3,969 1,909 33 57,903 18,112 109,201 2020 $ $ $ 196 45,972 165,030 31,211 28,378 43,436 24,133 338,160 87,212 10,051 18,351 13,663 129,277 467,437 15,648 3,803 4,478 2,995 124 50,999 33,570 111,617 2019 $ $ $ 56,530 158,883 30,232 28,010 44,992 26,181 344,828 83,603 9,921 17,242 12,910 123,676 468,504 16,572 4,126 3,883 4,318 207 30,906 12,728 72,740 2018 $ $ $ 42,915 134,977 25,072 30,885 3,290 20,976 24,916 283,031 81,911 9,852 15,150 12,498 119,411 402,442 17,847 2,295 651 10,890 338 662 26,523 12,382 71,588 2017 $ $ $ 61,373 166,790 24,768 33,752 3,930 21,848 27,827 340,288 83,500 11,302 15,698 12,644 123,144 463,432 15,027 5,445 536 13,490 308 357 27,519 6,669 69,351 2016 $ $ $ 64,228 132,498 24,859 32,796 4,262 21,219 27,932 307,794 80,375 9,049 15,016 12,730 117,170 424,964 16,381 6,148 650 9,649 305 193 26,225 6,603 66,154 2015 $ $ $ 60,490 127,870 21,482 31,311 4,980 19,180 32,106 297,419 74,807 7,727 15,059 13,159 110,752 408,171 18,498 6,084 631 11,704 309 25 25,665 11,403 74,319 2014 $ $ $ 73,637 116,070 20,524 30,796 5,895 25,207 34,808 306,937 77,243 7,554 14,471 13,088 112,356 419,293 17,666 6,369 1,126 10,486 25,168 10,748 71,563 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Business-type activities: Charges for services: Water and sewer Landfill Solid Waste Housing Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues 111,703 13,266 25,510 2,998 13,268 4,067 170,812 327,499 106,476 12,815 21,050 2,730 11,140 10,864 165,075 321,704 103,533 12,238 19,854 3,123 11,462 3,211 153,421 262,622 89,208 10,383 19,048 2,984 10,866 5,816 138,305 249,922 86,004 9,670 18,080 3,527 9,397 3,940 130,618 203,358 86,288 9,444 16,048 3,355 9,682 2,054 126,871 198,459 80,219 9,451 14,856 2,876 10,230 2,815 120,447 189,798 81,829 9,858 15,181 2,980 9,809 815 120,472 186,626 78,541 9,757 14,944 3,265 8,855 2,562 117,924 192,243 81,065 8,646 14,836 3,504 9,357 2,423 119,831 191,394 Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense (258,558) 14,813 (243,745) (208,331) 25,195 (183,136) (243,433) 18,006 (225,427) (226,543) 9,028 (217,515) (272,088) 6,942 (265,146) (211,443) 7,460 (203,983) (270,937) (2,697) (273,634) (241,640) 3,302 (238,338) (223,100) 7,172 (215,928) (210,760) 7,987 (202,773) $ $ $ $ $ $ $ $ $ $ General revenues and other changes in net position Governmental activities: Taxes: Property taxes $ Sales taxes Unrestricted state shared sales tax Unrestricted urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings Gain (losses) on disposal of capital assets Miscellaneous Transfers Total governmental activities 47,355 12,384 11,427 2,018 (2,312) 415,774 32,780 11,815 (8,777) 4,195 (3,445) 347,990 36,069 11,976 (464) 3,023 (1,337) 311,006 32,419 10,643 5,931 2,978 (1,326) 283,115 29,876 10,647 1,919 3,177 (1,320) 266,846 30,456 10,166 (694) 1,490 (1,358) 251,505 29,378 9,458 (253) 1,400 (1,264) 241,477 27,297 9,351 1,225 3,417 (803) 236,701 27,446 8,664 1,070 (688) 520 39,198 267,961 25,271 8,086 726 78 687 (64) 210,078 Business-type activities: Investment earnings Gain (losses) on disposal of capital assets Loss on joint venture Miscellaneous Transfers Total business-type activities Total primary government 3,087 1,673 2,312 7,072 422,846 285 10,557 3,445 14,287 362,277 227 25,867 1,337 27,431 338,437 1,277 17,216 1,326 19,819 302,934 1,628 3,714 1,320 6,662 273,508 1,368 2,628 1,358 5,354 256,859 883 114 1,264 2,261 243,738 614 63 803 1,480 238,181 643 127 (3,329) 86 (39,198) (41,671) 226,290 463 167 67 64 761 210,839 Changes in net position Governmental activities Business-type activities Total primary government $ $ $ 28,170 279,831 36,901 157,216 21,885 179,101 $ $ $ $ 26,885 249,451 35,086 139,659 39,482 179,141 $ $ $ $ 26,473 205,325 29,941 67,573 45,437 113,010 $ $ $ $ 25,718 180,842 25,910 56,572 28,847 85,419 $ $ $ $ 25,877 171,821 24,849 (5,242) 13,604 8,362 $ $ $ $ 25,519 162,299 23,627 40,062 12,814 52,876 Note - * Unamortized premiums and discounts on debt issuance and net position have been restated. Set Note XVII. 197 $ $ $ $ 24,955 155,779 22,024 (29,460) (436) (29,896) $ $ $ $ 24,531 150,201 21,482 (4,939) 4,782 (157) $ $ $ $ 23,881 147,175 20,695 44,861 (34,499) 10,362 $ $ $ $ 23,577 131,983 19,734 (682) 8,748 8,066 City of Glendale, Arizona Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Schedule 3 2023 General fund Nonspendable Restricted Committed Assigned Unassigned Total general fund All other governmental funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds $ 2022 2021 2020 962 23,477 150,801 96,886 $ 272,126 $ 394 19,795 123,769 54,905 $ 198,863 $ 6,143 10,047 66,822 54,511 $ 137,523 $ $ $ $ $ 6,572 227,123 2,068 2,388 $ 238,151 6,332 199,999 2,142 1,705 $ 210,178 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 $ $ 198 2018 2,933 5,604 5,685 43,523 57,745 $ 6,020 119,994 1,571 737 $ 128,322 $ $ 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 $ $ $ 600 688 1,554 (4,835) (1,993) 5,801 102,241 123 202 $ 108,367 199 City of Glendale, Arizona Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Schedule 4 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 $ 308,251 41,450 159,392 111 36,858 2,327 10,260 3,079 $ 276,843 43,276 152,120 191 11,754 2,654 (8,731) 3,755 $ 232,032 35,656 124,611 184 7,504 2,782 (380) 4,323 $ 206,815 19,182 129,329 173 8,514 2,426 6,063 3,647 $ 198,012 16,350 95,573 177 10,744 2,982 3,276 4,375 $ 188,553 12,534 94,191 58 10,250 3,337 129 6,490 $ 181,576 12,403 89,684 300 13,486 3,699 276 5,079 $ 176,489 11,951 86,273 17 12,613 3,857 1,517 6,850 $ 170,605 10,610 87,112 525 17,685 3,556 1,258 5,662 $ 159,328 11,522 81,364 18 14,781 3,735 900 4,500 561,728 481,862 406,712 376,149 331,489 315,542 306,503 299,567 297,013 276,148 General government Public safety Public works Community services Community environment Street maintenance Miscellaneous Capital outlay Debt service: Principal Interest 50,400 171,448 26,991 43,502 46,737 49,886 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 40,005 29,613 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 Total expenditures Excess of revenues over (under) expenditures 458,582 645,786 354,456 360,853 357,303 328,395 332,637 338,852 292,478 267,896 103,146 (163,924) 52,256 15,296 (25,814) (12,853) (26,134) (39,285) 4,535 8,252 Revenues Taxes and special assessments Licenses and permits Intergovernmental Local revenues Charges for services Fines and forfeitures Investment income (loss) Miscellaneous Total revenues Expenditures 200 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 402 80,135 (82,447) 284,175 32,225 5,316 602 1,938 364 (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) (1,910) 289,178 21,506 8,662 19,410 47,277 20,457 49,087 43,721 118 Net change in fund balances $ 101,236 $ 125,254 Debt service as a percentage of noncapital expenditures 17.03% 11.16% Other financing sources (uses) 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 Leases 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) $ 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% 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. 201 8,370 25.93% City of Glendale, Arizona Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (amounts expressed in thousands) Schedule 5 Major Components Fiscal Year 2013-14 Real Estate $ 316,206 Improvements $ 1,213,829 Utilities Rails and Wires Personal 3 $ 41,750 $ Less: Tax Exempt Property 53,581 $ 477,258 Net Assessed Value 1 $ Total Direct Tax Rate 1,148,108 2.29 Estimated Actual Value 1 $ Assessed Value as a Percentage of Actual Value 2 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 2022-23 1,027,022 3,122,956 80,028 69,568 843,629 3,455,945 1.67 35,738,019 12.031 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. 202 City of Glendale, Arizona Direct and Overlapping Governments Property Tax Rates Last Ten Fiscal Years Per $100 Assessed Valuation Schedule 6 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 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 2022-23 0.37 1.30 1.67 19.08 15.16 15.22 Source: Maricopa County 2022 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). 203 City of Glendale, Arizona Principal Property Taxpayers Current Year and Nine Years Ago June 30, 2023 (amounts expressed in thousands) Schedule 7 Tax Year 2023 Taxpayer RRB Beverage Opeartions Inc Sarival Development LLC Yam Westgate LLC Hart Cotton Lane Industrial LLC JLLX West Phoenix Distribution Center Mark Anthony Brewing Inc Escape One LLC Escape Two LLC VHS of Arrowhead Inc BDPF Park 303 LLC West 303 Phase 1 LLC Arizona Public Service Company Arrowhead Towne Center LLC Thunderbird School of Global Management Wal-Mart Stores, Inc. Centurylink (Qwest Corporation) New Westgate LLC JQH-Glendale Az Development LLC Southwest Gas Corporation Stadium Development LLC Total principal taxpayers Rank 1 2 3 4 5 6 7 8 9 10 Tax Year 2014 Percentage of Total City Taxable Assessed Value 1.52 % 0.94 0.87 0.75 0.66 0.55 0.54 0.50 0.46 0.44 Assessed Valuation $ 52,388 32,516 30,023 25,883 22,950 19,003 18,693 17,248 15,934 15,244 Assessed Valuation Rank 2 $ 1 3 4 5 6 7 8 9 10 $ 249,882 7.23 % $ Percentage of Total City Taxable Assessed Value 11,535 1.00 17,900 9,625 7,588 7,180 6,422 6,079 5,700 4,852 4,437 1.56 0.84 0.66 0.63 0.56 0.53 0.50 0.42 0.39 81,318 7.09 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. In fiscal year 2023, information obtained through Maricopa County Treasurers Office was pulled from new system software. Taxpayer information is grouped by owners name by land deed. 204 % % City of Glendale, Arizona Property Tax Levies and Collections Last Ten Fiscal Years (amounts expressed in thousands) Schedule 8 Collected within the Fiscal Year of Levy Fiscal Year 2013-14 Total Tax Levy(1) $ 23,943 Amount $ Total Collections to Date Collections in Subsequent Years(2) Percent of Levy 23,490 97.38 % $ Amount 138 $ Percent of Levy 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 97.56 367 25,005 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 97.94 391 25,691 99.46 2020-21 26,619 26,039 97.82 327 26,366 99.05 2021-22 27,126 26,639 98.20 306 26,945 99.33 2022-23 28,365 27,825 98.10 - 27,825 98.10 Source: Maricopa County Treasurer's Office (1) Total levy includes only secured property. (2) Includes collections and resolutions. 205 City of Glendale, Arizona City Transaction Privilege Taxes (Sales Tax) by Category Last Ten Fiscal Years (amounts expressed in thousands) Schedule 9 2023 2022 2021 2020 Retail sales Contracting Rentals Utilities Telecom/cable TV Restaurant/bar Amusement Other $ 143,428 32,149 31,889 10,176 2,070 32,417 12,827 14,868 $ 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 $ Total $ 279,824 $ 249,426 $ 205,312 $ 180,754 $ 171,578 % Growth by year Retail sales Contracting Rentals Utilities Telecom/cable TV Restaurant/bar Amusement Other 5.3 % 16.6 20.2 8.1 (2.3) 10.3 131.7 16.8 14.8 % 61.8 20.2 1.5 (10.4) 26.7 86.1 29.6 21.9 3.1 7.4 (22.0) 11.0 2.8 4.9 Total 12.2 % 21.5 % 13.6 % 17.9 % 2019 5.8 % 94.0 3.9 (3.0) 0.8 (6.3) (42.4) (1.6) 5.3 % 2018 95,042 7,212 20,598 8,898 3,006 22,280 5,023 9,519 5.9 % 7.9 10.6 (1.1) (13.8) 8.7 2.1 11.0 6.2 % $ 2017 89,762 6,684 18,629 8,995 3,486 20,498 4,920 8,574 $ 161,548 1.1 % 20.2 7.1 2.5 (1.1) 2.1 36.1 16.7 4.2 % $ 2016 88,804 5,559 17,394 8,775 3,523 20,070 3,615 7,347 $ 155,087 $ 84,710 4,810 16,581 8,544 4,244 18,767 4,176 8,802 $ 150,634 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 3.0 % Note: The 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 consumptions 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. 206 2015 3.8 % $ 2014 79,062 6,457 16,146 8,678 4,773 17,651 5,673 6,686 $ 145,126 7.0 % (18.8) 11.3 (0.6) (5.9) 11.4 168.9 15.1 8.4 % $ 73,924 7,948 14,502 8,732 5,072 15,842 2,110 5,808 $ 133,938 10.1 % 38.9 2.3 8.8 (8.4) 10.9 (2.0) (1.8) 8.9 % 207 City of Glendale, Arizona Ratio of Outstanding Debt by Type(1) Last Ten Fiscal Years (amounts expressed in thousands) Schedule 10 Government Activities Fiscal Year General Obligation Bonds(4)(5) 2013-14 $ 151,206 Street and Highway Revenue Bonds(4)(5) $ 3,736 Excise Tax Revenue Bonds (4)(5) Transportation Bonds (4)(5) Certificates of Participation (4) Developer Payable Obligations Subscription Based IT Arrangements $ $ $ $ $ 477,736 89,317 - 3,112 - Capital Leases $ Notes Payable 10,361 $ - 2014-15 133,168 1,912 477,747 91,047 - 3,406 - 57 - 2015-16 141,553 - 475,918 87,031 - 3,639 - 6,620 5,515 2016-17 125,384 - 468,431 83,119 - 3,898 - 4,484 3,677 2017-18 154,834 - 455,495 78,590 - 4,126 - 2,278 1,839 2018-19 152,066 - 439,912 73,952 - 4,376 - - - 2019-20 107,678 - 422,679 69,209 - 4,693 - - - 2020-21 106,367 - 403,550 64,691 - 4,893 - - - 2021-22 126,548 - 383,719 59,977 252,800 5,160 - 261 - 2022-23 105,672 - 353,314 52,642 252,800 5,473 16,321 157 - 208 Fiscal Year Landfill G.O. Bonds (4)(5) 2013-14 $ - Business Activities Water Sewer Revenue Bonds (4)(5) $ 267,254 Subscription Total Based IT Primary Arrangements Government (5) Total Debt per Capita(3)(6) $ $ - $ 1,002,722 Percentage of Personal Income(2)(6) 4,915 11.56% 2014-15 - 260,967 - 968,304 4,421 10.22 2015-16 - 249,302 - 969,578 4,824 10.84 2016-17 - 237,247 - 926,240 4,268 9.18 2017-18 - 222,217 - 919,379 4,463 9.19 2018-19 - 203,917 - 874,223 4,143 8.11 2019-20 - 185,231 - 789,490 3,605 6.52 2020-21 - 197,234 - 776,735 3,362 6.08 2021-22 10,962 210,401 - 1,049,828 4,564 7.66 2022-23 10,363 171,002 1,525 969,269 3,757 5.96 (1) Does not include other long-term obligations such as compensated absences, 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. (6) Total debt per capita and percentage of personal income numbers changed due to the addition of developer payable obligations 209 City of Glendale, Arizona Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year General Obligation Bonds(3) Less: Amounts Available in Debt Service Funds(1) 2013-14 $ $ 147,810 Schedule 11 Total Secondary Assessed Property Value Limited Property Value Percentage of Net Assessed Value of Property(5) Per Capita(2) 9,310 $ 138,500 $ 1,148,164 N/A 12.06% $ 599.28 507.29 2014-15 126,305 8,270 118,035 1,406,062 N/A 10.43 2015-16 135,130 4,511 130,619 N/A 1,173,091 11.12 (4) 556.38 2016-17 120,000 3,657 116,343 N/A 1,227,220 7.04 (4) 488.84 2017-18 146,985 31,750 115,235 N/A 1,306,946 8.82 (4) 480.43 2018-19 143,460 28,593 114,867 N/A 1,413,253 8.13 (4) 458.18 (6) 2019-20 100,445 1,545 98,900 N/A 1,478,280 6.69 (4) 389.24 (6) 2020-21 98,230 2,269 95,961 N/A 1,582,239 6.19 (4) 381.74 (6) 2021-22 125,320 (7) 1,820 123,500 N/A 1,682,808 7.34 (4) 487.53 (6) 2022-23 107,180 (7) 1,309 105,871 N/A 1,880,898 5.63 (4) 409.95 (8) (8) Sources: Maricopa County - Abstract by tax authority and class ADOA Office of Employment and Population Statistics - Population estimates Notes: (1) Includes the general obligation debt service fund balance at June 30. (2) Per capita is in actual dollars. Population estimates per ADOA. (3) Includes the July 1 payment. (4) 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. (5) Calculation uses the February State Abstract. (6) Calculation uses projected population figure from City of Glendale Annual Budget Book (7) Includes general obligation landfill bonds. (8) Calculation for FY2022-23 uses population figure provided by the City of Glendale's Economic Development Department. 210 City of Glendale, Arizona Net Direct and Overlapping Governmental Activities Debt June 30, 2023 (amounts expressed in thousands) Percentage Applicable to Glendale Net Debt Outstanding Jurisdiction Peoria Unified School District No. 11 Schedule 12 $ Amount Applicable to Glendale (2) 153,065 23.9518 % Glendale Elementary School District No. 40 46,630 99.2504 46,280 Deer Valley Unified School District No. 97 176,750 17.1756 30,358 Alhambra Elementary School District No. 68 35,970 19.3675 6,966 Glendale Union High School District No. 205 163,965 24.6838 40,473 - 3.7746 - Maricopa County Community College District 135,585 3.7746 5,118 Phoenix Union High School District No. 210 280,510 1.3931 3,908 Pendergast Elementary School District No. 92 56,075 24.3877 13,675 Tolleson Union High School District No. 214 214,300 7.0603 15,130 Washington Elementary School District No. 6 110,475 3.0962 3,421 Dysart Unified School District No. 89 69,425 2.4647 1,711 Agua Fria Union High School District No. 216 107,525 4.8575 5,223 Litchfield Elementary School District No. 79 30,250 7.2742 2,200 Cartwright Elementary School District No. 83 56,320 - - Maricopa County $ 36,662 Total Overlapping Debt 1,636,845 211,125 City of Glendale Debt(1) 786,379 786,379 Total $ 2,423,224 $ 997,504 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, lease, Certificates of Participation, developer payable obligation, bond premiums, and subscription-based information technology arrangements. (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. 211 City of Glendale, Arizona Legal Debt Margin Information Last Ten Fiscal Years (amounts expressed in thousands) Schedule 13 Legal Debt Margin Calculation for Fiscal Year 2023 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 6% Type Bonds 2014(1) Debt limit Total net debt applicable to limit $ Legal debt margin $ 68,886 2015(1) (2) 2016(1)(2)(4) 2017(1)(2)(3)(4) $ $ $ 2,415 Total net debt applicable to the limit as a percentage of debt limit 66,471 67,877 (165) $ 3.51% 68,042 70,496 10,580 $ -0.24% 59,916 73,633 $ 78,417 10,580 $ 15.01% 63,053 $ 70,439 $ 2020(1)(2)(3)(4) 2021(1)(2)(3)(4) 2022(1)(2)(3)(4) 2023(1)(2)(3)(4) $ $ $ $ $ 84,795 8,802 $ 10.17% 75,993 88,697 9,039 $ 10.38% 79,658 143,700 8,514 $ 10.19% 135,186 157,243 19,450 $ 5.92% 137,793 2015(1) (2) 2016(1)(2)(4) 2017(1)(2)(3)(4) Debt limit Total net debt applicable to limit $ 229,622 $ $ $ Legal debt margin $ 136,085 93,537 59.26% 226,257 118,200 $ 108,057 52.24% 234,986 120,039 $ 114,947 51.08% 245,444 2018(1)(2)(3)(4) $ 261,389 105,763 $ 139,681 154,132 43.09% 41.03% $ 8.16% $ $ 3,455,945 691,189 98,890 (1,343) 97,547 593,642 2020(1)(2)(3)(4) 2021(1)(2)(3)(4) 2022(1)(2)(3)(4) 2023(1)(2)(3)(4) $ $ $ $ $ 282,651 106,065 $ 176,586 37.53% 295,656 89,861 $ 205,795 30.39% 479,001 95,584 $ 383,417 19.95% 524,143 116,240 $ 407,903 691,189 97,547 $ 22.18% (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 vlaue. (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 Bonds 2016B from 20% to 6%. 212 190,435 2019(1)(2)(3)(4) 107,257 $ 207,357 16,922 12.37% 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 2014(1) 3,455,945 207,357 17,144 (222) 16,922 190,435 2019(1)(2)(3)(4) 7,978 14.37% 20% Type Bonds Total net debt applicable to the limit as a percentage of debt limit 2018(1)(2)(3)(4) $ 593,642 14.11% 213 City of Glendale, Arizona Pledged-Revenue Coverage Last Ten Fiscal Years (amounts expressed in thousands) Utility Service Charges(1) Fiscal Year 2013-14 Schedule 14 $ 81,733 Less: Operating Expenses(2) $ 42,544 Water and Sewer Revenue Bonds Net Available Debt Service Revenue Principal Interest $ 39,189 $ 10,210 $ Coverage 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 2022-23 114,015 72,134 41,881 18,595 7,495 1.61 214 Transportation Bonds Transportation Sales Tax Fiscal Year 2013-14 $ 23,112 Debt Service Principal Interest $ 3,125 $ Excise Tax Revenue Bonds (4) Excise Tax Revenue(3) Coverage 4,201 3.15 $ 141,674 Debt Service Principal Interest $ 6,500 $ Coverage 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 2022-23 47,814 4,310 2,384 7.14 267,157 17,825 17,311 7.60 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. 215 City of Glendale, Arizona Demographic and Economical Statistics Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year City of Glendale Population(2) 2013-14 233 (5) 3,945 2014-15 233 (5) 4,064 2015-16 227 2016-17 238 2017-18 240 2018-19 Schedule 15 Maricopa County Population(6) Personal Income (1) Per Capita Personal Income(1)(4) $ $ % 42,443 6.6 175,437,829 43,169 5.6 4,153 185,111,698 44,573 5.6 4,233 196,779,825 46,487 4.9 (8) (7) 4,316 209,719,687 48,591 4.3 (8) 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) 4,507 249,677,860 55,398 7.4 (8) 2021-22 252 (11) 4,507 268,713,717 59,621 3.5 (8) 2022-23 258 4.1 (8) 4,507 (3) 167,439,604 Unemployment Rate (5) 268,713,717 (3) 59,621 (3) 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 Pheonix, 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. 216 City of Glendale, Arizona Principal Employers Current Year and Nine Years Ago Schedule 16 2023 Employer Luke Air Force Base Banner Thunderbird Health System Arrowhead Towne Center Walmart City of Glendale Westgate Peoria Unified School District #11 Glendale Elementary School District Deer Valley School District Glendale Community College Glendale Union High School District Arrowhead Community Hospital AAA Total Employees 6,960 2,650 2,650 1,940 1,840 1,700 1,540 1,540 1,280 1,020 Rank 1 2 2 4 5 6 7 7 9 10 23,120 2014 Percentage of Total City Employment 5.20 % 1.98 1.98 1.45 1.38 1.27 1.15 1.15 0.96 0.76 17.28 % Employees 5,610 2,900 2,500 2,175 1,592 1,608 7 1.37 1,790 1,944 1,010 1,000 6 5 9 10 1.52 1.65 0.86 0.85 22,129 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 217 Rank 1 2 3 4 8 Percentage of Total City Employment 4.76 % 2.46 2.12 1.85 1.35 18.79 % City of Glendale, Arizona Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Function/Program General government Management services Finance Planning Building Legal Other Police Fire Community service Parks and recreation Library Public works Engineering Transportation Utilities Total 2023 35 64 12 31 68 62 (2) 571 301 100 (2) 59 34 169 35 97 202 1,840 2022 31 57 9 28 69 67 536 286 69 58 32 157 33 88 189 1,709 2021 (1) 31 62 12 25 70 69 549 287 65 55 36 164 32 80 189 1,726 Schedule 17 Full-Time Equivalent Employees as of June 30 2020 2019 2018 2017 26 61 11 22 75 71 563 283 68 53 36 168 31 85 199 1,752 22 56 10 24 71 72 551 278 59 51 37 156 29 77 195 1,688 27 57 12 24 73 70 529 276 53 68 35 188 26 60 185 1,683 29 55 14 22 71 68 530 282 54 73 35 183 24 59 186 1,685 2016 28 53 13 22 67 68 522 262 55 66 34 184 18 57 184 1,633 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. (2) Communications department was moved to Community Service from Other. 218 2015 24 56 11 22 69 66 517 259 57 58 31 180 19 56 185 1,610 2014 31 49 10 21 69 63 534 253 48 59 32 173 17 57 176 1,592 City of Glendale, Arizona Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program Police Calls for service Bookings Criminal offense reports / Case 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 Schedule 18 Fiscal Year 2018 2023 2022 2021 2020 2019 2017 2016 2015 2014 173,395 8,440 44,836 175,604 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 39,776 5,766 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 64,003 12,266 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 59,557 6,100 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 60,058 44,673 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 41,879 113,950 90,721 83,452 90,953 89,614 86,187 75,561 78,977 74,217 70,679 10,183 9,764 8,844 7,171 6,217 5,804 6,234 5,488 5,449 4,799 435,343 517,174 504,461 499,106 494,325 498,092 514,197 568,653 528,835 408,516 42,508 38,270 43,670 47,273 66,174 69,934 71,912 74,256 77,318 78,271 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. 219 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 Schedule 19 2023 2022 2021 2020 Fiscal Year 2019 2018 2017 2016 2015 2014 3 219 9 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 68 62 62 62 60 60 60 60 59 59 97.1 67 994 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 29.2 708 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 24,615 23,509 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 19,220 757 757 748 748 748 748 748 718 718 718 110 2,189 110 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 22 20 21 21 21 22 22 20 22 20 Source: Various city departments Note: Landfill capacity in thousands 220 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2023 Schedule 20 WATER RATES PER METER SIZE Commercial and Residential Monthly Base Charge Outside City Meter Size (inch) Inside City 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10" 12" 12.40 15.90 22.70 44.10 78.90 135.00 235.00 466.00 835.00 1,284.00 1,764.00 16.12 20.67 29.51 57.33 102.57 175.50 305.50 605.80 1,085.50 1,669.20 2,293.20 Residential Meter Size Gallons per Month 0 - 6,000 6,001 - 15,000 15,001 - 30,000 over 30,000 Commercial 3/4 inch Meter Size and Greater (1) All Year Inside Outside City City $ 2.99 3.75 5.24 7.14 All Year Inside Outside City City $ 3.89 4.88 6.82 9.29 $ 3.17 3.17 3.17 3.17 $ 3.96 3.96 3.96 3.96 Summer Excess Rate Inside Outside City City $ 4.03 4.03 4.03 4.03 SEWER SERVICE RATES Type of Service Single Family Dwelling Unit Office Building Apartment - Average 5 units Apartment - Average 35 units Retail/Wholesale Inside City Outside City 41.91 83.37 99.53 700.38 81.85 31.21 1,961.22 79.59 150.45 N/A (1) Per 1,000 gallons SOURCE: City of Glendale Finance 221 $ 5.00 5.00 5.00 5.00 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2023 Schedule 21 HISTORICAL AVERAGE NUMBER OF WATER CONNECTIONS(1) Fiscal Year Ending June 30 2014 (2)(3) 2015 (2) 2016 (2) 2017 (2) 2018 2019 2020 2021 2022 2023 Residential 53,914 54,126 54,266 54,448 54,686 54,881 55,161 55,646 56,807 57,416 Multi-Family 1,799 1,800 1,800 1,799 1,790 1,790 1,790 1,789 1,789 1,789 Commercial 4,264 4,379 4,492 4,632 4,390 4,425 4,450 4,514 4,593 4,657 Sprinkler 1,819 1,862 1,885 1,910 1,863 1,955 1,974 2,025 2,076 2,133 Total 61,796 62,167 62,443 62,789 62,729 63,051 63,375 63,974 65,265 65,995 (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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Residential (1) 26,921 26,946 26,595 27,193 27,150 27,303 26,251 27,867 26,149 26,291 Commercial 8,221 8,176 8,704 8,748 8,834 9,257 8,793 8,954 8,965 8,837 Other (2)(3) 3,050 2,467 2,092 2,743 2,365 1,891 1,691 2,913 2,835 1,423 (1) Residential includes both Single and Multi-family deliveries. (2) Other include unbilled water and recovered effluent groundwater. (3) Calendar years 2019, 2020, 2021 Other and Sprinkler totals were transposed. Source: Annual report to Arizona Department of Water Resources 222 Sprinkler (3) 2,413 2,411 2,327 2,581 2,564 2,536 2,405 2,436 2,237 2,142 Total 40,605 40,000 39,718 41,265 40,913 40,987 39,140 42,170 40,186 38,693 SEWERAGE CONNECTIONS BILLEDAND SEWAGE TREATED Fiscal Year Ending June 30 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 No. of Connections 57,385 57,588 57,758 57,953 58,155 58,454 58,764 59,305 60,532 61,201 91st Ave WWTP (2) (MGD) Actual 8.4 6.9 7.5 7.4 6.7 7.0 6.6 9.0 7.4 7.6 Arrowhead WRF (MGD) 2.7 2.7 2.7 2.7 2.6 2.7 2.6 2.6 2.7 2.6 West Area WRF (MGD) 6.0 7.2 6.9 7.2 7.2 7.0 8.0 4.8 7.1 6.2 (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 223 Total Treated 17.1 16.8 17.1 17.3 16.5 16.7 17.2 16.4 17.2 16.4 City of Glendale Finance Division 5850 West Glendale Avenue, Suite 302 Glendale, Arizona 85301 (623) 930-2480