City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Prepared by the: Budget and Finance Department City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT INTRODUCTORY SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 City of Glendale, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Mayor Jerry Weiers Councilmembers Ian Hugh - Vice Mayor, Cactus District Leandro Baldenegro - Ocotillo District Joyce Clark - Yucca District Ray Malnar - Sahuaro District Lauren Tolmachoff - Cholla District Bart Turner - Barrel 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, 2024 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 Construction Fund . . . . . . . . . . 129 Budgetary Comparison Schedule – Municipal Property Corporation Debt Service Fund . . 130 Budgetary Comparison Schedule – General Obligation Debt Service Fund . . . . . . 131 Budgetary Comparison Schedule – Excise Tax Revenue Debt Service Fund . . . . . 132 Non-Major Governmental Funds Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . 135 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . 140 Budgetary Comparison Schedules Police and Fire Sales Tax Fund . . . . . Community Development Block Grants Fund . Highway Users Gas Tax Fund. . . . . . Other Special Revenue Fund . . . . . . Highway User Debt Service Fund . . . . Transportation Debt Service Fund . . . . Certificates of Participation Debt Service Fund Streets Construction Fund . . . . . . . Fire and Police Construction Fund . . . . Parks Bond Construction Fund . . . . . Excise Tax Bond Construction Fund . . . Development Impact Fees Fund . . . . . Cemetery Perpetual Care Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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. . . . . . . . . . . . . . . . . . Workers Compensation Fund . . . . . . . . . . . . . . . . Employee Benefits 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 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 Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 196 198 200 202 203 204 205 206 208 210 211 212 214 216 217 218 219 220 221 222 January 31, 2025 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, 2024. 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, 2024, 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 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 FY23-24 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 258,000 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 2.3% 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 income tax revenues also increased 41.1% compared to last fiscal year. Workforce and Unemployment Glendale’s unemployment rate for the month of June 2024 was 3.6% which is slightly lower than the statewide unemployment rate of 3.9%. 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%). 2 Economic Development Glendale's economic development strategy is a well-rounded approach focused on fostering a thriving community through various avenues. Key components like business attraction, retention, redevelopment, small business support, arts and culture, special events, and tourism play an essential role in the city's overall growth. One significant area of focus is the Loop 303 corridor, a rapidly expanding region with thousands of acres of prime developable land. Recent successes in the area highlight Glendale's appeal to major corporations. For instance, Nestle has established operations in Glendale, currently employing 250 people, with plans to expand to 400 jobs at full capacity. PUMA has developed a state-of-the-art distribution center spanning 1.2 million square feet. The facility features advanced automation technologies, including 3.5 miles of conveyor systems, automatic retrieval and storage robots, and a new cubing process designed to optimize packaging for customers. The Amazon GEU2 Facility, a 1.2 million square-foot facility, currently employs over 300 people, with plans to grow to 2,000 jobs at full capacity. These major corporate investments, along with facility expansions, have been transformative, fueling job creation, enhancing infrastructure, and solidifying Glendale's position as a desirable hub for both businesses and residents. The City's Sports and Entertainment District continues to thrive with exciting new additions in the experiential retail space. YAM Properties, the commercial real estate company owned by GoDaddy founder Bob Parsons, acquired the Westgate Entertainment District in 2018. Since then, YAM has introduced notable enhancements, while the district has also welcomed other exciting developments. Thirsty Lion Gastropub opened in October 2024, this two-story, 14,000 square-foot venue accommodates up to 515 guests and created 100 jobs, adding a dynamic new dining option to the area. Mario Andretti's Indoor Karting is set to open in Spring 2025, this 95,000 square-foot entertainment center will feature a three-level go-kart track, arcade games, laser tag, and virtual reality attractions. Construction on Moxy Hotel is slated to begin in the 4th quarter of 2024 on this 209-room hotel, to be located at 95th Avenue and West Maryland Avenue, offering modern accommodations for visitors to the area. With projects like these, the district continues to grow as a premier destination for entertainment, dining, and hospitality. These additions highlight the district's evolution into a premier destination for entertainment, dining, and hospitality that welcomes over 30 million visitors annually. Set to open in late 2025, the highly anticipated VAI Resort is raising the bar for world-class destinations with an expanded scope that promises to deliver an unparalleled mix of luxury, entertainment, and innovation. The resort will feature 1,083 hotel rooms spread across four luxury hotels, offering a variety of accommodations for every type of guest; 171,000+ SF of retail and dining, creating a vibrant hub for shopping and culinary experiences; 571,000+ SF of attractions and entertainment, including the 9-acre Mattel Adventure Park, a state-of-the-art nightclub, and a multi-level concert venue; 55,000 SF of corporate office space, occupied by the owner and developer, integrating business with leisure; 180,000 SF indoor theater, ideal for hosting world-class performances and events and 200,000 SF of convention center space, designed to accommodate conferences, expos, and large-scale gatherings. Jose Andres is set to open his first Arizona restaurant, "Bar Mar," at VAI Resort in Glendale. A world-renowned chef known for his numerous culinary show appearances, Andres is also a humanitarian recognized as one of Time's "100 Most Influential People" twice. With 40 restaurant concepts across major U.S. cities, the Jose Andres Group provides a wide range of culinary experiences, from food trucks to Michelin-starred fine dining. "Bar Mar" will be the first of twelve restaurants announced for VAI Resort and will feature exceptional interpretations of iconic seafood classics. North Glendale's Arrowhead area is experiencing significant growth with several new developments. Arrowhead Porsche is under construction on their new dealership at 83rd Avenue and Bell Road. Set to open in 2025, the dealership will be located just east of Loop 101. REI Co-Op and Blue Pearl Pet Hospital have also recently joined the area, enhancing its retail and service offerings. The Phoenix Children's Arrowhead Campus is a 175,000 square-foot freestanding pediatric hospital that offers inpatient care, a 24/7 emergency department, a surgery center, and comprehensive imaging services. This state-of-the-art facility is not only set to transform healthcare in the West Valley but has also created over 400 new jobs, making a substantial impact on the local economy. From cutting-edge medical care to job creation, these developments solidify the Arrowhead area's role as a key hub for innovation, services, and community growth. In Downtown Glendale, the City Council has approved the $89.7 million Downtown Campus Reinvestment Project (DCRP), aimed at fully renovating City Hall and its surrounding areas. A key highlight of the area's transformation is the redevelopment of the former Gaslight Inn property. This historic building has been 3 converted into a mixed-use space featuring residential lofts, and soon, the West Valley's first Cornish Pasty Co. restaurant. Known for its rustic yet elegant design, the Arizona-born restaurant will occupy the ground level of the Gaslight Building at 58th and Glendale Avenues. Additionally, Downtown Glendale will welcome Hilton's first LivSmart Studios in Arizona, a modern addition to Hilton's portfolio of 24 world-class brands. This new property will provide much-needed lodging to support events at Glendale's Civic Center, accommodate overnight conference attendees, and serve the millions of annual visitors to the downtown area. It will also offer a convenient hospitality option for guests visiting the nearby Sports and Entertainment District. These projects mark a significant step in revitalizing Downtown Glendale, enhancing its appeal as a destination for dining, lodging, and cultural experiences. Arts and culture and special events have also been a major focus of the City's economic development operations. The Arts Commission funded over a dozen performances through the City of Glendale Performing Arts Grants. The City continues to be a hub for events of all sizes from mega events including the NCAA Final Four, the Annual Fiesta Bowl, international soccer matches to Ballet Under the Stars that once again took the stage at Sahuaro Ranch Park for a free performance with over 1,500 people in attendance. Annually, the City's Special Events Division approves nearly 200 special event applications citywide, attracting thousands of visitors to experience arts, entertainment, and culture in our city. 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 $16.0 million in fiscal year 2024. This increase is primarily due to $5.5 million in taxes and special assessment revenue and $18.8 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, 2023. This was the thirty-sixth consecutive year the City has received this prestigious award, and the thirty-seventh 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, 2023. This was the thirty-seventh 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 6 7 8 9 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT FINANCIAL SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 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, 2024, 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter – Implementation of a New Accounting Standard As discussed in Note XXI to the financial statements, effective July 1, 2023, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. Our opinion is not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 13 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. 14 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 pension and OPEB schedules, 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 fund 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. 15 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 January 31, 2025, 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 January 31, 2025 16 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS (Required Supplementary Information) FOR THE FISCAL YEAR ENDED JUNE 30, 2024 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (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, 2024. 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 2023-24:  The City’s total net position changed by $221,835 or 16.5%. The governmental net position changed by $194,684 or 24.1%, and the business-type net position changed by $27,151 or 5.1%.  The City’s total revenues changed by $70,213 or 9.4%. Program revenues in the form of charges for services, grants, and contributions changed by $17,558 or 5.4%. General revenues changed by $52,655 or 12.5%.  Program revenues from governmental activities changed by $1,411. Program revenues for business-type activities changed by $16,147 or 9.5%.  Operating grants and contributions from governmental activities changed by $7,647 or 11.1% due to American Rescue Plan Act (ARPA) funding.  Capital grants and contributions from governmental activities changed by $10,230 or 30.9%. Contributed capital increased due to increased developments and rising construction costs.  General revenues from governmental activities changed by $46,835 or 11.2%. The primary reason for this is a change of $20,661 or 1.8% in investment earnings. A change of $6,438 or 2.3% in sales tax revenues and a change of $19,459 or 41.1% in state shared income tax also contributed to this increase.  The total cost of all City programs changed by $27,479 or 4.8%. The increase in program costs is primarily due to increases in public safety, public works, and water and sewer.  The General Fund, a major governmental fund, collected $422,475 in revenues which is a change of $17,307 or 4.3% from the prior year. This increase was primarily due to an increase in taxes and intergovernmental revenues. The total expenditures of the General Fund were $302,553 which is a change of $20,515 or 7.3%. 19 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (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, 2024 (amounts expressed in thousands) The City maintains 18 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 6 major funds. Data from the other 12 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 $1,564,135 as of June 30, 2024. 21 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (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 $64,512 or (57.3)% 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, 2022 and 2024. The chart below is a comparison of the City’s net position for fiscal years 2024 and 2023: City of Glendale, Arizona Condensed Statement of Net Position As of June 30, 2024 and 2023 (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 Activities Total 2024 2023 2024 2023 2024 $ 950,288 $ 752,063 $ 141,815 $ 122,200 $ 1,092,103 $ 2023 874,263 154,545 989,720 46,892 5,845 2,064 2,149,354 143,657 967,483 48,196 5,524 2,354 1,919,277 53,061 626,928 1,887 1,111 37,979 862,781 45,137 611,102 2,014 1,124 37,595 819,172 207,606 1,616,648 48,779 6,956 40,043 3,012,135 188,794 1,578,585 50,210 6,648 39,949 2,738,449 94,026 85,218 6,506 7,780 100,532 92,998 Current liabilities Noncurrent liabilities Total liabilities 158,826 1,028,742 1,187,568 138,786 1,000,073 1,138,859 45,261 255,654 300,915 43,598 241,635 285,233 204,087 1,284,396 1,488,483 182,384 1,241,708 1,424,092 Deferred Inflows of Resources 54,825 59,333 5,224 5,722 60,049 65,055 649,466 399,683 (48,162) $ 1,000,987 $ 584,359 334,618 (112,674) 806,303 $ 489,894 46,632 26,622 563,148 $ Deferred Outflows of Resources Net position: Net investment in capital assets Restricted Unrestricted Total net position 22 485,518 1,139,360 1,069,877 47,567 446,315 382,185 2,912 (21,540) (109,762) 535,997 $ 1,564,135 $ 1,342,300 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (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, 2024 and 2023 (in thousands) Governmental Activities 2024 2023 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 Net position - ending $ Business-type Activities 2024 2023 Total Primary Government 2024 2023 38,159 $ 54,625 $ 76,570 68,923 43,369 33,139 158,098 156,687 162,839 $ 153,477 $ 16,922 13,268 7,198 4,067 186,959 170,812 200,998 $ 93,492 50,567 345,057 208,102 82,191 37,206 327,499 28,756 286,269 35,704 66,814 12,944 32,088 2,346 623,019 3,701 6,879 197,539 3,087 1,673 175,572 28,756 286,269 35,704 66,814 12,944 35,789 9,225 820,558 28,170 279,831 36,901 47,355 12,384 14,514 3,691 750,345 118,709 14,101 22,046 18,511 173,367 24,172 2,979 27,151 535,997 563,148 $ 106,533 11,620 21,200 16,646 155,999 19,573 2,312 21,885 514,112 535,997 $ 28,170 279,831 36,901 47,355 12,384 11,427 2,018 574,773 63,881 67,766 179,653 173,375 48,135 42,500 50,461 47,954 60,332 57,884 22,894 25,766 425,356 415,245 197,663 159,528 (2,979) (2,312) 194,684 157,216 806,303 649,087 $ 1,000,987 $ 806,303 $ 23 63,881 67,766 179,653 173,375 48,135 42,500 50,461 47,954 60,332 57,884 22,894 25,766 118,709 106,533 14,101 11,620 22,046 21,200 18,511 16,646 598,723 571,244 221,835 179,101 221,835 179,101 1,342,300 1,163,199 1,564,135 $ 1,342,300 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (amounts expressed in thousands) Changes in Net Position The net position of the governmental activities changed by $194,684 from $806,303 to $1,000,987 and business-type activities’ net position changed by $27,151 from $535,997 to $563,148. 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, 2024 changed by $46,835 or 11.2%. The increase in revenues is due an increase of $6,438 in local sales tax and $19,459 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. Investment earnings also increased $20,661. 24 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (amounts expressed in thousands) The cost of programs and services for governmental activities changed by $10,111 or 2.4%. The increase is primarily due to increases in public safety of $6,278 and public works of $5,635. 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, 2024 changed by $21,967 or 12.5%. The cost of programs and services from business-type activities for the fiscal year ended June 30, 2024 changed by $17,368 or 11.1%. Solid waste expenses changed by $846 or 4.0%, water and sewer expenses changed by $12,176 or 11.4% and landfill expenses changed by $2,481 or 21.4%. 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, 2024 (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 (59.4%) 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 (17.6%). City Expense Categories The majority of the City’s expenses (49.8%) 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, 2024 (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 $664,631, a change of $154,354 or 30.2% 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 2024 and 2023, $77,444 and $96,886 respectively, of the total fund balance constituted unassigned fund balance. Revenues for governmental functions overall totaled $593,896 in fiscal year 2024, a change of $32,168 or 5.7% of the previous years’ total of $561,728. The increase is primarily due to an increase of $7,018 or 2.3% in taxes and special assessments revenue, an increase in intergovernmental of $25,550 or 16.0% and an increase in investment income of $20,032 or 195.2%. These revenues are all indicators of the continued healthy economy experienced by the City. Expenditures for governmental functions totaled $554,531 in fiscal year 2024, a change of $95,949 or 20.9% from the previous year total of $458,582. The increase is primarily due to principal payments made for refunding general obligation and excise tax bonds. The General Fund is the main operating fund of the City. The General Fund balance changed by $16,012 or 5.9%. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $86,386 while total fund balance was $288,138. The General Fund has $1,563 of its fund balance as non-spendable; $21,785 as restricted; and $178,404 assigned. Per the City’s adopted financial policies, 10% of the general fund operating revenue $42,248 has been earmarked as the Budget Stabilization Reserve and $44,138 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, 2024 to commit these funds; therefore, the funds are reported as unassigned. Overall, the General Fund’s performance resulted in revenues over expenditures of $119,922 in fiscal year 2024. The excess of revenues decreased slightly from the prior year where revenues exceeded expenditures by $123,130. 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 $131,936 at the end of the fiscal year, an increase of $18,434 from the previous fiscal year. The increase in fund balance was primarily due to the increase in taxes and special assessment revenue of $1,088 or 2.3%, and an increase in investment income of $3,772 or 92.4%. Transfers out to the streets construction fund for capital outlay decreased by $5,523 or 62.8%. The Other Construction Fund accounts for construction activities for governmental facilities, economic development, cultural facilities, open space and trails, library, flood control and ARPA projects. The fund had a balance of $37,755 at the end of the fiscal year an increase from $6,054 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 $22,302 at the end of the fiscal year an increase of $8,105 from the previous fiscal year. The increase was primarily due to a decrease in debt service payments of $5,510 following the refunding of MPC 2012B and 2012C bonds. 27 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (amounts expressed in thousands) The 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. In fiscal year 2023 this was a non-major fund and due to a cash defeasance, this is a major fund for fiscal year 2024. The fund had a balance of $(8,942) a decrease from $1,565 the previous fiscal year. The Excise Tax Revenue Debt Service Fund accounts for the debt that was issued to refund the senior and subordinate excise tax revenue bonds issued by the Municipal Property Corporation. In fiscal year 2023 this was a non-major fund and due to a refunding, this is a major fund for fiscal year 2024. The fund had a balance of $1,188 at the end of the fiscal year an increase from $643 the previous fiscal year. Other Non-Major Governmental Funds had a restated beginning balance of $102,190 balance which increased $90,064 to $192,254 at the end of the fiscal year. This is primarily due to net transfers in and out and the issuance of a $42,500 bond in the new Excise Tax Bond Construction fund. Proprietary Funds Net position of the enterprise funds increased $27,151 or 5.1%. The enterprise funds’ total net position was $46,632 restricted, $26,622 unrestricted, and $489,894 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 $14,217 or 2.8% for the fiscal year ended June 30, 2024. The landfill fund net position changed by $2,134 of 13.9% 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 $40,837 for the fiscal year ended June 30, 2024. 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 $21,719 higher than the final budgeted amounts. Positive economic trends resulted in taxes and charges for services that were $17,649 and $13,821 greater than the final budget, respectively.  General Fund expenditures were lower than the final budget by $112,973. The most significant budget variance was in capital outlay which was $66,750 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 $14,684 or 5.5%. This increase is due to tax revenues, charges for services, and intergovernmental revenues. This increase is also related to expenditures being lower than expected, mainly in the public works 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, 2024, for its governmental activities was $1,144,265 and for the business-type activities was $679,989. 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. Major capital asset projects capitalized during the current fiscal year included the following: 28 CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (amounts expressed in thousands)       Thunderbird Reservoir Improvement $9,513 West Area Water Reclamation Facility Improvements $5,732 Pyramid Peak Water Treatment Plant Process or Expansion $4,758 City Court Renovations $4,543 Landfill North Cell Excavation $3,777 Airport South Apron Pavement Reconstruction $3,655 The following table is a summary of capital assets reflected in the June 30, 2024 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 $ $ 2024 36,762 114,885 2,898 207,999 331 81,130 528,223 42,929 65,080 14,314 17,175 2,157 1,369 11,761 17,252 1,144,265 $ $ Total Primary Government Business-type Activities 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 $ $ 2024 35,820 17,241 5,971 4,929 50,171 95,028 90,802 213,490 107,851 27,859 4,500 3,059 546 111 1,386 21,225 679,989 $ $ 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 $ $ 2024 72,582 132,126 5,971 2,898 212,928 331 131,301 528,223 42,929 65,080 14,314 95,028 90,802 213,490 107,851 27,859 4,500 20,234 2,703 111 1,369 13,147 38,477 1,824,254 $ $ 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 The construction commitments at June 30, 2024 were $54,671. 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 $896,195 compared to $896,560 last year, a 0.04% 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 $ $ 2024 135,945 45,705 272,045 $ Total Primary Government Business-type Activities 2023 98,535 50,235 161,880 2024 $ 2023 - $ - $ 2024 135,945 45,705 272,045 $ 2023 98,535 50,235 161,880 32,885 239,735 175,300 252,800 - - 32,885 239,735 175,300 252,800 726,315 738,750 161,520 8,360 169,880 149,165 8,645 157,810 161,520 8,360 896,195 149,165 8,645 896,560 $ 29 $ $ $ $ CITY OF GLENDALE, ARIZONA Management’s Discussion and Analysis (MD&A) For the Fiscal Year Ended June 30, 2024 (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, an “A1” by Moody’s and an "AA" rating from Fitch Ratings. The subordinate excise tax bonds are rated “AA+” by Standard and Poor’s, an “A1” by Moody’s, and an "AA" rating from Fitch Ratings. 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, 2024, were $252,159 and $763,972, 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 2024-25 budget is $1,480,000 an increase of 17.4% from 2023-24 The increase is mainly attributable to an increase in capital outlay. Overall, the goal of the FY24-25 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 2024-25 are projected at $1,046,547. The major sources of revenue for the City continue to be sales tax and state shared revenues with projected revenues of $177,917, and $105,508 respectively. For fiscal year 2024-25, City sales tax is expected to increase by 2.2%. 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, 2024 City of Glendale, Arizona Statement of Net Position June 30, 2024 (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 $ 769,336 Primary Government Business-type Activities $ 35,755 Total $ 805,091 842 13,819 32,871 969 51,561 (11,999) 614 1,575 90,700 46,892 154,545 989,720 5,845 2,064 2,149,354 24,407 13 554 11,999 5,204 9,086 54,797 1,887 53,061 626,928 1,111 37,979 862,781 842 38,226 32,871 982 52,115 5,818 10,661 145,497 48,779 207,606 1,616,648 6,956 40,043 3,012,135 88,246 5,780 94,026 5,135 1,371 6,506 93,381 7,151 100,532 35,072 1,184 60,925 12,273 487 5,779 43,106 12,681 1,282 19,475 3,675 450 7,692 6 47,753 2,466 80,400 15,948 937 13,471 43,112 103,714 925,028 1,187,568 26,986 228,668 300,915 130,700 1,153,696 1,488,483 9,424 45,401 54,825 1,982 1,396 1,846 5,224 11,406 1,396 47,247 60,049 649,466 489,894 1,139,360 83,763 118,866 131,941 27,440 6,979 21,785 5,845 3,064 (48,162) 1,000,987 $ 19,190 12,008 1,111 14,323 26,622 563,148 83,763 138,056 131,941 27,440 12,008 6,979 21,785 6,956 3,064 14,323 (21,540) 1,564,135 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, 2024 (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 $ $ 63,881 179,653 48,135 50,461 60,332 22,894 425,356 118,709 14,101 22,046 18,511 173,367 598,723 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 21,659 $ 6,169 4,759 4,168 1,404 38,159 14,547 $ 8,142 3,100 20,463 30,318 76,570 3,720 $ 39,649 43,369 (23,955) $ (165,342) (40,276) (25,830) 11,039 (22,894) (267,258) 119,778 15,209 26,939 913 162,839 200,998 40 16,882 16,922 93,492 $ 6,579 619 7,198 50,567 (267,258) 7,688 1,108 4,893 (97) 13,592 13,592 7,688 1,108 4,893 (97) 13,592 (253,666) 6,398 22,358 286,269 35,704 66,814 12,944 32,088 2,346 (2,979) 461,942 194,684 806,303 1,000,987 $ 3,701 6,879 2,979 13,559 27,151 535,997 563,148 $ 6,398 22,358 286,269 35,704 66,814 12,944 35,789 9,225 475,501 221,835 1,342,300 1,564,135 $ General revenues: Property tax for general purposes Property tax for debt service Sales taxes State shared sales tax Urban revenue sharing (state shared income tax) Auto in-lieu taxes Investment earnings unrestricted Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending $ The notes to financial statements are an integral part of this statement. 34 - $ - (23,955) (165,342) (40,276) (25,830) 11,039 (22,894) (267,258) City of Glendale, Arizona Balance Sheet Governmental Funds June 30, 2024 (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 LIABILITIES Vouchers payable Retainage payable Compensated absences - current Intergovernmental payable Due to other funds Deposits Unearned revenue Matured interest payable Matured bonds payable Total liabilities $ 257,249 $ 186 7,293 937 14,848 37,249 210 17 41,884 359,873 $ 17,437 417 1,640 487 5,712 3,974 29,667 $ 136,052 $ 374 1,150 263 137,839 $ 5,839 44 15 5,898 Municipal Property Corporation Debt Service Other Construction $ 69,538 $ 69,538 $ 2,025 271 29,487 31,783 $ 18,584 $ 32,871 7,028 58,483 $ 1,075 2,235 3,310 Formerly NonMajor Fund General Obligation $ - $ 656 30,165 30,821 $ 9,167 3,315 26,850 39,332 Formerly NonMajor Fund Excise Tax Revenue $ 14,236 $ 5,075 19,311 $ 3,878 14,245 18,123 Other NonMajor Governmental Funds $ 167,954 $ 6,091 32 13,147 42 48,415 5,008 240,689 $ 5,789 496 61 5,667 67 9,630 3,915 17,595 43,220 Total Governmental Funds $ 663,613 $ 842 13,758 32,871 969 14,848 51,546 515 90,700 46,892 916,554 $ 31,090 1,184 1,745 487 14,834 5,779 43,106 12,183 60,925 171,333 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue Deferred Inflows of Resources- leases Total deferred inflows of resources 1,538 40,530 42,068 5 5 - 32,871 32,871 431 431 - 344 4,871 5,215 35,189 45,401 80,590 FUND BALANCES Fund balance: Nonspendable Restricted Committed Assigned Unassigned Total fund balances 1,563 21,785 178,404 86,386 288,138 263 131,673 131,936 37,755 37,755 22,302 22,302 (8,942) (8,942) 1,188 1,188 6,815 179,731 2,350 3,358 192,254 8,641 394,434 2,350 181,762 77,444 664,631 Total liabilities, deferred inflows of resources and fund balances $ 359,873 $ 137,839 $ 69,538 $ The notes to financial statements are an integral part of this statement. 35 58,483 $ 30,821 $ 19,311 $ 240,689 $ 916,554 City of Glendale, Arizona Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024 (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 $ $ $ 664,631 2,187,312 (1,062,459) 1,124,853 746 (415) 331 13,404 (5,307) 8,097 Net OPEB asset 5,597 Adjustment to reflect the government joint venture 2,064 Deferred outflow of resources related to pensions and OPEB 86,608 Deferred outflows related to refunded debt 5,780 Subscription interest payable (46) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds and shown as an internal balance item. (12,013) 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. 78,660 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 pensions and OPEB liabilities Lease obligations Subscription-based IT arrangements Developer payable obligations Compensated absences Unamortized premium on debt issuance $ (726,315) (179,528) (325) (8,162) (5,860) (31,857) (38,030) (990,077) Deferred inflows of resources related to pensions and OPEB (8,687) 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 35,189 Net position of governmental activities $ 1,000,987 36 City of Glendale, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 (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 244,045 20,406 119,560 97 16,886 2,110 16,639 2,732 422,475 $ 48,902 1,843 810 462 7,853 578 60,448 Municipal Property Corporation Debt Service Other Construction $ 10,340 10,340 $ Formerly NonMajor Fund General Obligation 5,110 292 5,402 $ 22,322 15 22,337 Formerly NonMajor Fund Excise Tax Revenue $ 549 549 Other NonMajor Governmental Funds $ 17,556 48,089 76 871 364 4,959 430 72,345 Total Governmental Funds $ 315,269 37,962 184,942 983 18,219 2,474 30,292 3,755 593,896 45,706 170,956 31,229 24,696 1,541 809 30,180 658 39 210 - 7 - 7 - 1,155 - 914 5,036 2,569 20,864 17,764 49,256 175,992 33,837 45,770 49,485 2,954 275 25,196 302,553 119,922 88 6 965 32,048 28,400 12,298 13,205 (2,865) 2,235 5,405 7,647 (2,245) 26,850 5,987 32,844 (10,507) 61,040 7,755 69,950 (69,401) 17,765 7,835 23,537 96,284 (23,939) 110,932 27,263 61,996 554,531 39,365 OTHER FINANCING SOURCES (USES) Long term debt issued Refunding debt issued Premium on long term debt issued Payment to refunded bonds escrow agent Loss on bond defeasance Proceeds from equipment disposal Proceeds from land sale Leases Subscription-based IT arrangements Transfer in Transfer out Total other financing sources (uses) 379 481 383 514 (105,667) (103,910) 12 (9,978) (9,966) 32,651 1,930 (15) 34,566 10,350 10,350 - 128,705 15,166 (140,180) (2,917) 69,172 69,946 74,109 6,923 96 41 33,545 (711) 114,003 106,760 128,705 24,019 (140,180) (2,917) 487 481 383 555 113,067 (116,371) 114,989 Net change in fund balances Fund balances - beginning, as previously presented Change within financial reporting entity (nonmajor to major) Fund balances - beginning, as adjusted Fund balances - ending 16,012 272,126 272,126 288,138 18,434 113,502 113,502 131,936 31,701 6,054 6,054 37,755 8,105 14,197 14,197 22,302 (10,507) 1,565 1,565 (8,942) 545 643 643 1,188 90,064 104,398 (2,208) 102,190 192,254 154,354 510,277 510,277 664,631 $ $ $ $ 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, 2024 (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 including right to use assets 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 $ 154,354 61,996 (59,821) 2,175 The net effect of various transactions involving capital is to increase net position. Capital contributions Gain (loss) on disposals $ 38,435 (7,257) 31,178 (290) Gain (loss) on government joint venture Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. The net effect of long-term obligations and the related transactions is to increase net position. Long-term debt issued Refunding debt issued Payment to refunded bonds escrow agent Bond premium Long-term developer payable obligations increase Amortization of bond premium and discount Principal paid on bonds, notes, and leases Gain on bond defeasance Subscription-based IT arrangements Lease obligations 48 $ (106,760) (128,705) 140,180 (24,019) (387) 5,239 110,932 1,003 (555) (383) (3,455) 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 (3,556) $ 24,173 (36,950) (12,777) 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. 32,991 Interest expense on software based internet technology arrangements on the statement of activities are not accrued on the governmental funds. 11 Interest expense on leases on the statement of activities are not accrued on the governmental funds. 103 Amortization expense on refunded debt on the statement of activities are not accrued on the governmental funds. (984) 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 $ (1,100) (4,014) $ 38 (5,114) 194,684 City of Glendale, Arizona Statement of Net Position Proprietary Funds June 30, 2024 (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 22,978 42,288 Total Enterprise Funds Landfill $ 7,940 - $ 4,837 - $ 35,755 42,288 Governmental Activities Internal Service Funds $ 105,723 - 22,318 (2,952) 13 5,190 89,835 1,680 (23) 9,597 4,092 (708) 554 14 8,789 28,090 (3,683) 13 554 5,204 108,221 61 15 99 105,898 9,086 12,008 1,887 713 501 121 277 9,086 12,509 1,887 1,111 1,575 248 1,149,522 (529,836) 619,686 37,979 681,359 771,194 66,399 (24,030) 42,369 42,991 52,588 44,495 (26,561) 17,934 18,211 27,000 1,260,416 (580,427) 679,989 37,979 742,561 850,782 22,042 (11,058) 10,984 12,807 118,705 3,339 1,371 4,710 595 595 1,201 1,201 5,135 1,371 6,506 1,638 1,638 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 11,701 1,282 1,997 19,190 324 7,354 123 23,407 3,457 166 69,001 387 306 285 183 450 218 64 1,893 593 383 6 14 3 155 213 1,367 12,681 1,282 2,686 6 14 19,475 327 7,692 123 23,857 3,675 443 72,261 3,982 886 28,074 44 1,692 34,678 1,926 161,169 22,377 193 185,665 254,666 280 9,467 4,126 122 19,641 33,636 35,529 489 8,348 530 9,367 10,734 2,695 170,636 34,851 845 19,641 228,668 300,929 908 4,105 1,255 6,268 40,946 DEFERRED INFLOWS OF RESOURCES Amounts related to pensions and OPEB Amounts resulting from refunded debt Amounts related to leases Total deferred inflows of resources 1,175 1,396 1,846 4,417 221 221 586 586 1,982 1,396 1,846 5,224 737 737 440,634 31,981 17,279 489,894 11,155 19,190 14,323 713 12,008 29,953 516,821 121 (14,669) 17,433 277 (675) 16,881 19,190 14,323 1,111 12,008 14,609 551,135 248 67,257 78,660 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 12,013 563,148 $ City of Glendale, Arizona Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2024 (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 $ 66,172 42,360 3,935 7,877 120,344 $ 15,168 158 36 15,362 $ 16,882 6,273 20,046 5 913 44,119 Governmental Activities Internal Service Funds Total Enterprise Funds $ 16,882 66,172 42,360 6,273 20,046 15,168 4,098 36 8,790 179,825 $ 71,613 37,920 1,369 12 110,914 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) 47,902 22,727 14,088 33,759 118,476 1,868 11,204 505 4 2,904 14,617 745 18,605 21,964 110 2,488 43,167 952 47,902 22,727 11,204 18,605 505 21,964 14,202 39,151 176,260 3,565 37,004 35,606 3,536 76,146 34,768 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 Total net position - ending 5,295 3,110 (4,284) 1,088 33 5,242 7,110 6,579 833 (305) 14,217 502,604 516,821 $ 572 (278) 5 299 1,044 1,131 (41) 2,134 15,299 17,433 $ 19 (20) 23 22 974 619 1,361 2,954 13,927 16,881 5,295 3,701 (4,582) 1,088 61 5,563 9,128 7,198 3,325 (346) 19,305 5,810 (66) 5,744 40,512 325 40,837 37,823 78,660 $ 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 $ $ 7,846 27,151 City of Glendale, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 (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 $ 116,464 (13,597) (39,377) (29,663) 33,827 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Transfers out Advances to/due from other funds Net cash provided (used) by noncapital financing activities $ 14,749 (2,632) (3,907) (4,890) 3,320 $ 43,447 (12,552) (19,380) (8,230) 3,285 Internal Service Funds Total $ 174,660 (28,781) (62,664) (42,783) 40,432 $ 110,930 (4,691) (20,690) (37,401) (10,193) 37,955 833 (305) 528 1,131 (41) 1,090 1,361 5 1,366 3,325 (346) 5 2,984 325 325 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Bond issuance 31,545 Bond premium 3,867 Principal payments on obligations (21,532) Acquisition of capital assets and rights (46,217) Impact fees 5,295 Interest payments on obligations (4,266) Net cash provided (used) by capital and related financing activities (31,308) (425) (6,545) (291) (7,261) (2,911) (20) (2,931) 31,545 3,867 (21,957) (55,673) 5,295 (4,577) (41,500) (5,976) (94) (6,070) 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 $ 19 19 1,739 3,098 4,837 $ 3,701 3,701 5,617 84,935 90,552 $ 5,810 5,810 38,020 67,703 105,723 $ 952 $ 3,565 $ 34,768 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 Capital contributions $ 3,110 3,110 6,157 71,117 77,274 $ 572 572 (2,279) 10,720 8,441 $ 1,868 $ 745 $ $ 33,759 2,904 2,488 39,151 3,536 (4,216) 9 169 390 13 2 (142) 1,047 24 336 538 30 33,827 (611) 1 27 63 3 (356) (2) 41 505 3,320 (354) (309) 3 60 135 34 162 1 (4) 122 (5) 3,285 (5,181) (309) 13 256 588 16 36 (142) 853 25 330 701 (5) 30 505 40,432 28 12 3 59 138 8 (8) 879 327 (1,795) 37,955 1,088 (384) 127 (48) 124 6,579 $ $ The notes to the financial statements are an integral part of this statement. 41 (71) - $ $ 249 619 $ $ 1,088 (384) 127 130 124 7,198 $ $ 2,359 - CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 ..74 ..75 ..77 ..77 ..79 ..79 ..81 ..82 ..98 ..98 100 100 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024 (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, library, 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 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. The excise tax revenue debt service fund accounts for the debt that was issued to refund the senior and subordinate excise tax revenue bonds issued by the Municipal Property Corporation. 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. 44 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) 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. 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 45 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) 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. 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 46 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) 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. 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, 2024, the postage portion of the general fund supplies inventory was $17. 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. 47 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Major outlays for capital assets and improvements are capitalized as projects are constructed. 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, 2024, is $1,043. 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, 2024, the City has capitalized payments of $4,463 for these water rights. Current year amortization was $112. The net book value of these water rights as of June 30, 2024, was $2,901. 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, 2024, 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. 48 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Restricted are amounts that are subject to externally enforceable legal restrictions imposed by parties outside the government such as creditors, grantors, contributors, and other governments through laws and regulations. Examples of restricted fund balance are amounts held to pay for bonded construction projects, debt service, and excise tax revenues collected for voter approved transportation expenditures. 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. 49 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2023 August 21, 2023 October 1, 2023 March 1, 2024 Penalties and interest added (collection dates): First half of assessment Second half of assessment November 1, 2023 May 1, 2024 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, 2024, is as follows: Fund General fund General obligation debt service fund Total Rate $ $ 0.35 1.21 1.56 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. 50 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) 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, 2024, 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. 51 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) The water and sewer fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/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 these 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 52 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) intention of the Adopting Employer that the benefits payable under this Plan be eligible for exclusion from the gross income of Participants as provided by Sections 105(b) and 106 of the Code. In addition, it is the intention of the Adopting Employer that the Plan qualify as a Health Reimbursement Arrangement (HRA) under IRS Revenue Ruling 202-41 (June 26, 2002) and IRS Notice 2002-45 (June 26, 2002). The provider for this RHS plan is Educator Benefit Consultants (EBC). The contributions to this Plan are detailed in the Compensated Absences (N) section on this document. 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 0.165 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 0.165 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, 2024 (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 increase in the fair value of total investments during the fiscal year ended June 30, 2024, was $542. II. Compliance - Excess of expenditures over appropriations/deficits in fund equity The City ended the fiscal year June 30, 2024, with a deficit net position of $2,994 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, 2024, with expenditures exceeding appropriation in the amount of $8,942 in the general obligation fund. Future general obligation bond issuance's debt service schedules will be structured so that the deficit will be eliminated within the next fiscal year. 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 $444,922 and the bank balances were $448,671. The difference of $3,749 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, 2024 (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, 2024. 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, 2024, the City had the following investments: Investment Type Commercial Paper Corporate Bonds U.S. Agencies U.S. Treasury Arizona LGIP-State Pool Grand total investments 0-1 $ 3,100 9,444 819 103,579 27,358 $ 144,300 Investment Maturities (in years) 1-2 2-3 Over 3 $ - $ - $ 10,007 8,345 3,997 43,650 30,575 75,236 $ 57,654 $ 38,920 $ 75,236 Cash deposits Cash with fiscal agents Total deposits and investments $ $ Fair Value 3,100 27,796 4,816 253,040 27,358 316,110 444,922 200,217 961,249 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 Commercial Paper Corporate 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 - $ 3,100 $ - $ 3,100 27,796 27,796 4,816 4,816 253,040 253,040 253,040 $ 35,712 $ 288,752 Level 1 $ $ $ 55 27,358 316,110 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Interest rate risk: As a means of limiting its exposure to interest rate risk the City’s investment policy requires all securities to mature in no more than five years. The City also purchases securities to be laddered with staggered maturity dates. 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, 2024, the City’s investments were rated by Moody’s Investor Service and Standard & Poor’s as follows: Investment Type U.S. Treasury U.S. Treasury Corporate Corporate U.S. Agencies Corporate Corporate Commercial Paper Corporate Corporate Corporate Corporate S&P Rating AA+ A-1+ A+ AA AA+ A AA+ A-1+ AA A+ A AA- Moody's Rating Aaa P-1 A1 A1 Aaa A2 Aaa P-1 Aa2 Aa3 A1 Aa3 % of Total Investments 71.02% 16.62% 2.93% 2.42% 1.67% 1.38% 1.22% 1.07% 0.58% 0.44% 0.38% 0.27% Weighted Average Maturity (Years) 2.26 0.56 1.91 0.79 1.08 1.86 0.91 1.19 1.41 2.19 1.52 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 Arizona LGIP Investment Type U.S. Treasury Arizona LGIP $ Amount 253,040 27,358 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 $96,002 less an allowance for doubtful accounts in the amount of $63,131 for a net value of $32,871 has been recorded at June 30, 2024. In the year 2020, the AZSTA began making payments to the City. Payments of $18,436 have been received by the City on the note as of June 30, 2024. 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, 2024 (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, 2024, is as follows: Balances June 30, 2023 Governmental activities Non-depreciable assets: Construction in progress Land Artwork Total non-depreciable assets $ Depreciable/amortizable assets: Buildings Right to use leased assets-building Improvements other than buildings Infrastructure - streets Infrastructure - parks Infrastructure - flood/storm drains Infrastructure - airport Machinery and equipment Computer equipment Software Right to use IT software Automotive equipment Total depreciable/amortizable assets 24,929 116,019 2,709 143,657 Increase $ 46,381 189 46,570 Decrease $ Balances June 30, 2024 (34,548) $ (1,134) (35,682) 36,762 114,885 2,898 154,545 396,775 364 289,694 958,539 104,568 82,901 24,157 45,791 5,748 6,875 22,000 56,355 1,993,767 15,527 382 2,936 43,810 3,878 1,329 3,655 12,082 1,413 1,179 5,846 92,037 (9,129) (3,600) (550) (38) (1,222) (2,306) (16,845) 403,173 746 289,030 1,002,349 108,446 84,230 27,812 57,323 7,123 6,875 21,957 59,895 2,068,959 Less accumulated depreciation/amortization for: Buildings (189,144) Right to use leased assets-building (198) Improvements other than buildings (202,064) Infrastructure - streets (447,869) Infrastructure - parks (62,044) Infrastructure - flood/storm drains (17,974) Infrastructure - airport (12,930) Machinery and equipment (38,019) Computer equipment (4,400) Software (5,339) Right to use IT software (5,495) Automotive equipment (40,808) Total accumulated depreciation/amortization (1,026,284) (9,298) (217) (9,218) (26,257) (3,473) (1,176) (568) (2,675) (604) (167) (5,573) (4,131) (63,357) 3,268 3,382 546 38 872 2,296 10,402 (195,174) (415) (207,900) (474,126) (65,517) (19,150) (13,498) (40,148) (4,966) (5,506) (10,196) (42,643) (1,079,239) Total depreciable/amortizable assets, net 28,680 (6,443) 989,720 (42,125) $ 1,144,265 Governmental activities capital assets, net 967,483 $ 1,111,140 57 $ 75,250 $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Balances June 30, 2023 Business-type Activities: Non-depreciable assets: Construction in progress - water and sewer $ Construction in progress - landfill Construction in progress - housing authority Land Total non-depreciable assets 24,574 2,012 1,310 17,241 45,137 Increase $ 44,353 4,539 616 49,508 Decrease $ Balances June 30, 2024 (36,437) $ (5,147) (41,584) 32,490 1,404 1,926 17,241 53,061 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 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 5,147 7,832 10,720 7,398 5,997 11,068 1,450 2 119 5,256 54,989 (53) (173) (139) (72) (578) (1,015) 18,205 9,183 108,425 170,218 183,932 404,868 194,955 50,548 8,126 9,261 1,614 1,176 2,188 44,657 1,207,356 Less accumulated depreciation/amortization for: Buildings Water rights Improvements other than buildings Water lines Sewer lines Water treatment plant Sewer treatment plant Meters and services Fire hydrants Machinery and equipment Computer equipment System purchase Right to use IT software Automotive equipment Total accumulated depreciation/amortization (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) (216) (179) (4,310) (4,023) (4,464) (13,356) (6,022) (1,048) (194) (1,218) (276) (460) (3,385) (39,151) 52 173 139 72 567 1,003 (13,276) (3,212) (58,254) (75,190) (93,130) (191,378) (87,104) (22,689) (3,626) (6,202) (1,068) (1,065) (802) (23,432) (580,428) Total depreciable/amortizable assets, net 611,102 15,838 (12) 626,928 (41,596) $ 679,989 Business-type activities capital assets, net $ 656,239 58 $ 65,346 $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 $ $ 20,419 7,436 16,507 13,292 5,703 63,357 33,759 2,904 2,237 251 39,151 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, 2024. 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 $ 12,431 6,503 8,155 1,602 4,316 32,489 1,404 $ 66,900 Construction Commitment $ 7,378 10,576 20,736 1,347 6,289 6,771 1,574 $ 54,671 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, 2024 (amounts expressed in thousands) deductible, fiduciary liability covering the Deferred Compensation Committee with limits up to $5,000 and with a $15 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 $996,263 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, 2024 (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 minimum confidence level of 55% 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 $28,074 as of June 30, 2024. 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 2024 2023 $ 7,085 $ 7,205 $ 2,848 (2,592) 7,341 1,290 (1,410) $ 7,085 Workers Compensation 2024 2023 $ 15,243 $ 11,200 $ 2,558 (2,937) 14,864 $ 7,960 (3,917) 15,243 Employee Benefits 2024 2023 $ 7,541 $ 4,526 30,200 (31,872) $ 5,869 32,676 (29,661) $ 7,541 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, 2024 (amounts expressed in thousands) VIII. 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, 2024, the value of the lease receivable is $48,779. The leases have interest rates between 0.514% and 3.843%. The value of the deferred inflow of resources as of June 30, 2024 was $47,247, and Glendale recognized lease revenue of $2,118 and lease interest revenue of $1,837 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 July 1, 2023 $ 40,626 2,490 1 4,167 $ 47,284 BUSINESS-TYPE ACTIVITIES: Deferred Inflow of Resources Land Other Total Deferred Inflow of Resources Balance as of July 1, 2023 $ 599 1,389 $ 1,988 GOVERNMENTAL ACTIVITIES: Lease Receivable Land Buildings Land Improvements Other Total Lease Receivable Balance as of July 1, 2023 $ 41,428 2,532 1 4,235 $ 48,196 BUSINESS-TYPE ACTIVITIES: Lease Receivable Land Other Total Lease Receivable Balance as of July 1, 2023 $ 602 1,412 $ 2,014 Additions $ 93 93 $ Reductions $ 1,353 253 370 $ 1,976 19 123 142 Balance as of June 30, 2024 $ 580 1,266 $ 1,846 Reductions $ 827 228 342 $ 1,397 Balance as of June 30, 2024 $ 40,601 2,397 1 3,893 $ 46,892 Additions Reductions $ - $ Additions $ 93 93 $ $ $ Additions $ $ Reductions - Balance as of June 30, 2024 $ 39,273 2,330 1 3,797 $ 45,401 $ $ 12 115 127 Balance as of June 30, 2024 $ 590 1,297 $ 1,887 IX. Short-term debt The City did not issue short-term debt for the year ended June 30, 2024. 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, 2024 (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 $45,705 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 $54,111. The current year revenues of $48,902 collected in the transportation special revenue fund paid the current year principal and interest amounts of $4,530 and $2,169 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 $272,045 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 $374,764. The current year principal and interest amount of $14,245 and $7,755 were funded with a transfer from the General fund. The $161,520 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 $220,281. The current year principal and interest on the bonds were $26,090 and net revenues of the system were $44,032. 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, 2024 (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. In June of 2024 the City issued Senior Excise Tax Revenue and Revenue Refunding bonds. This issuance refunded the 2012B Senior Lien Excise Tax and 2012C Subordinate Lien Excise Tax Bonds of the MPC. These new bonds are accounted for under Excise Tax Bonds payable from general fund sales tax and not within the Municipal Property Corporation. Additionally, the city defeased portions of the 2015A Senior Excise Tax Revenue Refunding and 2016 Senior Excise Tax Revenue Refunding Bonds using cash from existing resources. 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 $44,878. Excise tax revenues pledged for repayment of MPC was $293,802. The current year principal and interest paid was $7,640. 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 $286,089. The current year interest on the bonds was $5,662. E. Leases as Lessee As of June 30, 2024, the City, as a lessee, has 2 active leases. The leases have payments that range from $106 to $118 and interest rates that range from 0.893% to 2.848%. As of June 30, 2024, the combined value of the lease liability was $325. The value of the right to use asset as of June 30, 2024 was $746 with accumulated amortization of $415. The lease liability does not include any variable payments or sublease agreements. 64 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) F. Subscription-Based Information Technology Agreements As of June 30, 2024, the City had 89 subscription-based information technology agreements (SBITAs) involving various software. The subscription payments range from $0 to $1,955 and interest rates range from 1.580% to 3.712%. As of June 30, 2024, the value of the subscription liability is $12,308. The combined value of the right to use asset as of June 30, 2024 was $24,145 with accumulated amortization of $10,998. The subscription liability does not include any variable payments or other payments. 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, 2024: 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 Developer payable obligations Total other long-term obligations Total June 30, 2023 $ 50,260 $ Increases 64,260 $ Decreases (23,630) June 30, 2024 $ 90,890 Amounts Due Within OneYear $ 9,040 48,275 - (3,220) 45,055 3,325 161,880 43,050 171,205 - (61,040) (4,515) 272,045 38,535 14,990 4,740 7,185 175,300 252,800 738,750 235,465 (15) (142,415) (13,065) (247,900) 7,170 32,885 239,735 726,315 20 2,370 13,840 48,325 157 16,321 152,473 31,352 29,869 383 1,165 31,160 16,650 35,606 (215) (6,377) (12,606) (37,401) 325 11,109 183,633 35,396 28,074 179 4,250 17,836 28,074 25,678 5,473 261,323 17,591 387 102,942 (5,239) (61,838) 38,030 5,860 302,427 5,050 55,389 (309,738) $ 1,028,742 $ 1,000,073 $ 338,407 $ $ 103,714 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 $1,028,742 in the total liabilities, $541,904 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, 2024 (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, 2024: June 30, 2023 $ 8,645 149,165 157,810 Landfill GO bonds Water and sewer revenue bonds Total bonds payable 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 $ 31,545 31,545 $ Decreases (285) (19,190) (19,475) June 30, 2024 $ 8,360 161,520 169,880 Amounts Due Within OneYear $ 295 19,870 20,165 19,136 1,525 505 115 (441) 19,641 1,199 443 23,555 34,595 4,680 290 44 83,825 4,475 256 3,109 45 8,505 (3,707) (2,408) (6,556) 24,323 34,851 5,381 290 89 85,774 3,692 2,686 6,821 241,635 $ 40,050 $ (26,031) $ 255,654 $ Of the $255,654 in total liabilities, $195,402 (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. The remainder of this page left blank intentionally. 66 26,986 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) 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 7,225 Municipal Property Corporation Senior Lien Excise Tax Revenue Refunding Bonds Series 2012B June 5, 2024 31,935 Municipal Property Corporation Subordinate Excise Tax Revenue Refunding Bonds Series 2012C June 5, 2024 108,245 Senior Excise Tax Revenue Refunding Obligations Series 2015A May 30, 2024 26,560 Senior Excise Tax Revenue Refunding Obligations Series 2016 May 30, 2024 20,235 The remainder of this page left blank intentionally. 67 $ Remaining Balance 16,705 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) I. Bonds payable Bonds payable on June 30, 2024, are comprised of the following: Classified in governmental activities on the statement of net position: Purpose Interest Rate Issued Fiscal Year Ending June 30 Year Series Matures 2016 2019 2021 2022 2024 2036 2038 2041 2042 2043 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 Various Tax-Exempt 2023 4.00-5.00 Total Amount of Original Issue Bonds Outstanding June 30, 2024 $ $ 27,285 15,385 13,700 31,375 64,260 4,530 13,130 9,415 19,355 44,460 90,890 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 15,650 29,405 45,055 Revenue bonds payable from the 0.5% transportation sales tax Refunding Tax-Exempt Excise Tax Rev 2.00-5.00 Total 2032 55,635 38,535 38,535 Revenue bonds payable from the 0.5% transportation sales tax-direct borrowing Refunding Tax-Exempt Excise Tax Rev 2.62 2017 2032 Total 19,330 7,170 7,170 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 Taxable & Refunding Tax-Exempt 2024 5.00 Total 2015 2015 2015 2016 2018 2024 2031 2033 2033 2032 2038 100,430 13,700 33,830 65,385 171,205 32,945 13,700 3,795 50,400 171,205 272,045 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 Total 2033 2033 105,260 52,780 1,480 31,405 32,885 Certificates of Participation payable from general fund payments COPs Taxable 2021 0.897-2.942 2022 Total 2037 252,800 239,735 239,735 Total bonds payable recorded in governmental activities Less current portion Long-term portion of bonds payable recorded in governmental activities 68 $ 726,315 (48,325) 677,990 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 2024 2028 2030 2041 2042 2028 2044 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 Various 5.00 Total Amount of Original Issue Bonds Outstanding June 30, 2024 $ $ 8,915 121,245 20,250 22,720 20,665 40,010 31,545 Total bonds payable recorded in business-type activities Less current portion Long-term portion of bonds payable recorded in business-type activities J. 8,360 8,360 41,705 20,250 22,720 20,665 24,635 31,545 161,520 $ 169,880 (20,165) 149,715 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, 2024, is as follows: 6% Capacity to incur bonded debt Less: Bonded debt applicable to limit Unused bonded debt capacity $ $ 270,387 (18,228) 252,159 20% $ $ 901,289 (137,317) 763,972 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. 69 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) K. Bonds authorized, issued and unissued Bonds authorized but not fully issued as of June 30, 2024, are shown below: Authorized Amount GO bonds Voter authorized October 20, 1981 Operations center $ 6,750 Authorized but Unissued Issued through June 30, 2024 $ 550 $ 6,200 Voter authorized March 10, 1987 Library 9,698 9,698 - Voter authorized November 2, 1999 Cultural facility 1 Economic development Governmental facilities 1 Landfill development 1 Library Open spaces Transit 1 18,215 50,500 40,910 17,000 15,398 53,700 6,935 9,995 28,453 33,639 12,374 2,693 15,416 185 8,220 22,047 7,271 4,626 12,705 38,284 6,750 Voter authorized May 15, 2007 Flood control Parks and recreation Public safety Streets and parking 20,554 16,155 102,638 79,065 18,679 16,155 38,885 78,807 1,875 63,753 258 Voter authorized November 7, 2023 Public safety Street and parking Total GO bonds 78,000 82,000 597,518 265,529 78,000 82,000 331,989 $ $ $ Revenue bonds Voter authorized November 2, 1999 Water and sewer 1 Total revenue bonds $ 10,000 10,000 $ - $ 10,000 10,000 Total bonds $ 607,518 $ 265,529 $ 341,989 (1) Certain general obligation bonds or revenue bonds can be issued as general obligation bonds, revenue bonds or a combination thereof. 70 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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. 71 5,860 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) M. Future year debt service requirements Fiscal Year Ending Transportation Bonds Transportation Bonds Direct Borrowing 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Total $ $ 6,495 6,493 6,494 6,493 6,493 6,491 6,494 45,453 Less interest 6,918 Principal $ 38,535 $ G.O. Certificates Bonds of Direct ParticiBorrowing pation Water and Sewer Revenue Landfill Bonds/ Bonds Obligations Lease Obligations Subscription Based IT Arrangements $ 713 713 713 717 714 716 717 717 716 714 716 717 717 715 717 712 717 714 12,875 $ $ $ 4,515 $ 8,360 58,761 $ 161,520 MPC Bonds Excise Tax Bonds G.O. Bonds 4,384 4,385 4,385 4,386 4,387 4,386 4,384 5,516 8,665 44,878 $ 29,070 30,582 30,363 30,361 30,583 30,579 30,580 29,451 26,768 21,288 21,289 21,283 21,283 21,284 374,764 $ 13,283 11,481 9,093 7,488 6,903 6,900 6,909 6,919 6,983 6,193 6,206 6,233 6,229 6,242 4,965 4,965 4,966 4,160 2,499 128,617 $ 102,719 $ 272,045 37,727 $ 90,890 6,780 $ 45,055 208 207 207 206 206 205 205 7,214 8,658 $ 1,488 7,170 11,993 $ 32,885 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 51,835 $ 19,385 19,988 20,552 21,062 21,523 21,944 22,330 22,671 22,971 23,237 23,463 23,641 23,322 286,089 46,354 $ 239,735 27,685 27,668 25,208 22,430 13,024 13,019 7,323 7,323 7,316 7,318 7,317 7,320 7,319 7,322 7,321 7,321 7,321 4,901 2,911 2,914 220,281 $ 185 137 12 334 9 325 $ Total 4,907 3,491 2,828 1,287 222 12,735 $ 110,784 109,618 104,323 100,506 90,316 90,311 82,106 82,979 76,589 61,927 62,157 62,359 59,877 35,563 13,003 12,998 13,004 9,775 5,410 2,914 1,186,519 427 12,308 277,691 $ 908,828 The following table discloses the debt service requirements as of June 30, 2024, segregating principal and interest, for the next five years and in five-year increments thereafter. Fiscal Year 2025 2026 2027 2028 2029 2030-2034 2035-2039 2040-2044 Total $ $ Principal 73,362 75,468 73,245 72,415 65,208 307,635 201,995 39,500 908,828 $ $ Interest 37,422 34,150 31,078 28,091 25,108 86,277 30,964 4,601 277,691 The remainder of this page left blank intentionally. 72 $ $ Total 110,784 109,618 104,323 100,506 90,316 393,912 232,959 44,101 1,186,519 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) N. New bonds On September 14, 2023, the City issued $64,260 in General Obligation bonds to fund public safety, flood control, open spaces, parks, cultural facilities, library facilities, government facilities, and construction, reconstruction, or infrastructure improvements. The 2023 bonds mature on various dates starting 2024 to 2043 with interest rates of 4.00%-5.00%. The bonds are a general obligation of the City and pledged by the full faith and credit of the City. They are repaid through the levying of property taxes by the City. On June 5, 2024, the City issued $171,205 in Senior Excise Tax Revenue and Revenue Refunding bonds to fund the acquisition, construction, and equipping of the Downtown Campus Redevelopment Project, energy saving projects through performance-based contracting, and the development of the Heroes Regional Park ballfields, and to refund $31,935 of the Municipal Property Corporation Senior Lien Excise Tax 2012B and $108,245 of the Subordinate Lien Excise Tax 2012C bonds. The 2024 bonds mature on various dates starting 2024 to 2038 with an interest rate of 5.00%. The refunding bonds have a stated rate of 5.00% and a true interest cost of 3.55%. The City will reduce it’s total debt service payments for the next 14 years by approximately $14,933 and obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $12,490. The bonds are not a general obligation of the City, but are a special, limited obligation of the City and are payable from and secured by a senior lien pledge of the City’s Unrestricted Excise Taxes. On June 26, 2024, the City issued $31,545 in Senior Lien Water and Sewer revenue bonds to fund System acquisition, construction, and improvements including improvements to the Cholla Water Treatment Plant, the Oasis Water Treatment Plant and Thunderbird Reservoir, the waterline rehabilitation project, the 91st Avenue Wastewater Treatment Plant, and the West Area Water Reclamation Plant. The 2024 bonds mature on various dates starting 2029 to 2044 with a fixed interest rate of 5.00%. The bonds are not a general obligation of the City, but are a special revenue obligation of the City and are pledged and secured solely by the net revenues of the water and sewer system. O. Defeased bonds On May 30, 2024, the City defeased $26,560 of the outstanding City of Glendale Senior Excise Tax Revenue Refunding 2015A bonds and $20,235 of the Senior Excise Tax Revenue Refunding 2016 bonds by placing $47,172 in cash from existing resources in an irrevocable trust to provide for all future debt service payments on the bonds. Accordingly, the assets and the liabilities for the defeased obligations were not included in the City's financial statements. The defeasance advance refunded the series 2015A bonds maturing in 2026-2028 and the series 2016 bonds maturing in 2027-2033. The defeasance will result in a debt service savings of $2,557 and an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $2,290. Note X. H. Current and advance refunded bonds lists the remaining balances of these cash defeased bonds as of June 30, 2024. The remainder of this page left blank intentionally. 73 CITY OF GLENDALE, ARIZONA Note to the Financial Statements June 30, 2024 (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, 2024, 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, 2024 as of June 30, 2023 Closure and post-closure care costs: Amount remaining to be recognized as of June 30, 2024 Liability recognized as of June 30, 2024 North Cell 29,954 - South Cell 24,431 23,509 96% $ $ 21,735 21,336 $ $ 20,412 20,037 $ $ 21,735 - $ $ 770 19,641 These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year 2023-24. 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 36.8 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 74 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) XII. Inter-fund transactions Inter-fund balances at June 30, 2024, consisted of the following: A. Due to/due from Due to general fund from: Major governmental funds General Obligation Other non-major governmental funds Community development block grants fund Other special revenue fund Non-major proprietary funds Housing Total due to general fund $ 9,167 292 5,375 $ 14 14,848 The inter-fund balances at June 30, 2024, 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, 2024, 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 75 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) B. Inter-fund transfers Inter-fund transfers for the year ended June 30, 2024, consisted of the following: Transfers to municipal property corporation debt service fund from: General fund Total transfers to municipal property corporation debt service fund $ 10,350 10,350 Transfers to excise tax revenue funds from: General fund Total transfers to excise tax revenue 69,172 69,172 Transfers to non-major special revenue funds from: General fund Capital projects fund Other construction fund Other special revenue fund Highway user revenue fund Water and sewer fund Landfill fund Total transfers to non-major special revenue fund 3,719 101 15 8 43 305 41 4,232 Transfers to non-major debt service funds from: General fund Transportation special revenue fund Total transfers to non-major debt service funds 18,776 6,704 25,480 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 559 3,274 3,833 Transfers to water and sewer proprietary fund from: General fund Total transfers to water and sewer proprietary fund 833 833 Transfers to landfill proprietary fund from: General fund Total transfers to landfill proprietary fund 1,131 1,131 Transfers to non-major proprietary funds from: General fund Total transfers to other non-major proprietary fund 1,361 1,361 Transfers to non-major internal service funds from: General fund Total transfers to non-major internal service fund 325 325 Grand total all transfers $ 76 116,717 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024, the City intended to honor $50,739 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 $ $ 1,015 19 8,181 2,180 867 36,001 85 2,391 50,739 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, 2023. The equity interest for the City at June 30, 2023, was $37,979. The City accounts for its approximate 6.5% investment using the equity method in the water and sewer fund. For the year ended June 30, 2024, the City recognized a gain in the joint venture of $1,088. 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. 77 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2023, 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 $ $ 108,277 561,632 669,909 85,029 584,880 85,007 (96,851) (11,844) 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, 2023. The equity interest for the City at June 30, 2023, was $2,064. 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, 2024, the City recognized a loss in the joint venture of $290. The remainder of this page left blank intentionally. 78 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2023, 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 $ $ 4,172 51,891 56,063 3,619 52,444 11,651 (17,447) (5,796) 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 budgeted ongoing expenditures for the upcoming fiscal year. The City’s general fund, unassigned fund balance at June 30, 2024 is $86,386. Per the City’s adopted financial policies, 10% of the general fund operating revenue which totals $42,248 has been earmarked as the Budget Stabilization Reserve and $44,138 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, 2024 to commit these funds; therefore, the funds are reported as unassigned. 79 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 Excise tax bond construction Library construction Economic development Open spaces/trails Cultural and historical projects Government 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 Public safety training facility Total assigned Unassigned fund balance $ $ Other Construction Transportation 210 1,353 1,563 $ Municipal Property Corporation Debt Service 263 263 $ - $ General Obligation Debt Service - $ Other Non-Major Governmental Funds Excise Tax Revenue - $ - $ Total Governmental Funds 6,815 6,815 $ 473 1,353 6,815 8,641 13,954 7,831 21,785 131,673 131,673 3,120 2,943 10,135 3,628 12,500 5,429 37,755 22,302 22,302 - 1,188 1,188 991 1,149 (130) 293 27,441 1,344 75,378 1,763 19,375 4,570 47,172 385 179,731 131,673 991 24,639 (130) 293 27,441 13,954 7,831 1,344 75,378 1,763 19,375 4,570 47,172 3,120 2,943 10,135 3,628 12,500 385 5,429 394,434 - - - - - - 2,095 255 2,350 2,095 255 2,350 7,199 - - - - - - 7,199 111,608 35,073 20,000 4,524 178,404 86,386 288,138 131,936 37,755 22,302 (8,942) (8,942) 1,188 3,358 3,358 192,254 111,608 35,073 20,000 4,524 3,358 181,762 77,444 664,631 $ $ $ 80 $ $ $ $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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. 19,190 12,008 Restricted for OPEB benefits 713 Restricted for other purposes 14,323 46,234 Total restricted for water and sewer Landfill fund Restricted for OPEB benefits 121 121 Total restricted for landfill Other enterprise funds Restricted for OPEB benefits 277 277 Total restricted for other enterprise funds $ Total restricted for enterprise fund types XVII. 46,632 Change in accounting principle There were no changes in accounting principle other than changes from non-major to major funds for this fiscal year which changes are reflected on the face of the statements in accordance with GASB Statement No. 100, Accounting Changes and Error Corrections. The remainder of this page left blank intentionally. 81 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024, 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 $ 5,845 183,633 Business-type activities $ 1,111 34,851 88,246 5,135 93,381 9,424 36,950 1,982 4,412 11,406 41,362 The remainder of this page left blank intentionally. 82 Total $ 6,956 218,484 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 initial membership date: Before July 1, 2011 On or after July 1, 2011 Sum of years, age equals 80 30 years, age 55 10 years, age 62 25 years, age 60 5 years, age 50* 10 years, age 62 any years, age 65 5 years, age 50* any years, age 65 Final average salary is based on Highest 36 consecutive months of last 120 months Highest 60 consecutive months of last 120 months Benefit percent per year of service 2.1% to 2.3% 2.1% to 2.3% * With actuarially reduced benefits Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $100 per month to $260 per month depending on the age of the member and dependents. For members with 5 to 9 years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service. Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with long-term disability commencement dates after June 30, 1999, are limited to 30 years of service or the service on record as of the effective disability date if their service is greater than 30 years. 83 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024, active ASRS members were required by statute to contribute at the actuarially determined rate of 12.29 percent (12.14 percent for retirement and 0.15 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 12.29 percent (12.03 percent for retirement, 0.11 percent for health insurance premium benefit, and 0.15 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 9.99 percent (9.94 percent for retirement, and 0.05 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, 2024, were $11,980, $110, and $141, respectively. During fiscal year 2024, 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, 2024, 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 benefits Long-term disability $ Net pension/OPEB (asset) liability 112,069 (3,774) 91 The net asset and net liabilities were measured as of June 30, 2023. 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, 2022, to the measurement date of June 30, 2023. 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, 2023. The City’s proportions measured as of June 30, 2023, and the change from its proportions measured as of June 30, 2022 were: Proportion June 30, 2023 0.69258% 0.69898% 0.69509% ASRS Pension Health insurance premium benefit Long-term disability Decrease from June 30, 2022 0.01057 0.01444 0.01271 Expense - For the year ended June 30, 2024, the City recognized the following pension and OPEB expense: ASRS Pension Health insurance premium benefit Long-term disability $ 84 Pension/OPEB expense 15,869 (459) 89 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Deferred outflows/inflows of resources - At June 30, 2024 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 $ $ $ 2,532 - 159 $ 1,407 82 $ - - 75 24 133 - 3,965 - 166 - 7 1,071 57 - 32 12 6 4,022 $ $ 110 269 $ 1,680 $ 141 259 $ 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, 2025. 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, 2025 2026 2027 2028 2029 Thereafter Pension $ 51 - 11,980 15,583 $ $ (33) (4,166) 4,273 (493) - Health insurance premium benefit $ (639) (701) (96) (94) 9 - The remainder of this page left blank intentionally. 85 Long-term disability $ (9) (25) 2 (24) (22) (1) 197 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) Actuarial Assumptions –The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates Recovery rates Healthcare cost trend rate June 30, 2022 June 30, 2023 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, 2020. 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: Asset Class Public equity Credit Real estate Private equity Interest rate sensitive Total Target allocation 44% 23% 17% 10% 6% 100% Long-term expected geometric real rate of return 3.50% 5.90% 5.90% 6.70% 1.50% Discount Rate - At June 30, 2023, 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, 2024 (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)% 167,863 $ (2,638) 133 112,069 $ (3,774) 91 1% Increase (8.0)% 65,547 (4,739) 50 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, 2024 (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 20 years 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 $100 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, 2024 (amounts expressed in thousands) Employees Covered by Benefit Terms - At June 30, 2024, 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 284 284 137 137 Inactive employees entitled to but not yet receiving benefits 114 63 48 44 Active employees 344 344 214 214 Total 742 691 399 395 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, 2023, are indicated below. Rates are a percentage of active members’ annual covered payroll. PSPRS Police PSPRS Firefighters Active memberpension 7.65%-8.36% 7.65%-9.51% health insurance premium benefit 0%-0.09% 0%-0.13% City-pension 16.81%-24.80% 18.86%-26.15% City-health insurance premium benefit 0%-0.39% 0%-0.13% The City’s contributions to the plans for the year ended June 30, 2024, were: Pension PSPRS-Police PSPRS-Fire $ 9,624 5,763 Health insurance premium benefit $ 129 7 During fiscal year 2024, the City paid for PSPRS pension and OPEB contributions 100 percent from the General Fund. Liability - At June 30, 2024, the City reported the following assets and liabilities: PSPRS Police PSPRS Firefighters $ Net pension (asset) liability 68,511 37,580 Net OPEB (asset) liability $ (783) (2,399) The net assets and net liabilities were measured as of June 30, 2023, 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, 2024 (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, 2023 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 applicable for OPEB Pub-S-2010 tables Not applicable Actuarial assumptions used in the June 30, 2023, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2021. 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 Diversifying strategies Core bonds Other assets (Capital appreciation) International public equity Private credit Global private equity U.S. Public equity Total Target allocation 2% 5% 6% 7% 16% 20% 20% 24% 100% Long-term expected geometric real rate of return 0.69% 3.68% 1.90% 4.49% 4.49% 6.19% 7.28% 3.98% Discount Rate – At June 30, 2023, 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, 2024 (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, 2023 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, 2024 Pension Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 431,660 $ 382,487 $ 49,173 $ Health insurance premium benefit Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 5,770 $ 6,453 $ (683) 7,751 30,909 - 7,751 30,909 133 415 - 133 415 20,236 - 20,236 (56) - (56) - 6,951 3,648 29,092 (6,951) (3,648) (29,092) - 91 16 487 (91) (16) (487) (20,216) - (20,216) (133) - 133 - (265) - (265) (2) - 2 - 38,680 470,340 19,342 $ 401,829 19,338 68,511 227 5,997 327 6,780 (100) (783) $ $ The remainder of this page left blank intentionally. 91 $ $ CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) PSPRS - Firefighters Balance at June 30, 2023 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, 2024 Pension Increase (decrease) Total Plan Net pension fiduciary pension liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 261,453 $ 235,013 $ 26,440 $ Health insurance premium benefit Increase (decrease) Total Plan Net OPEB fiduciary OPEB liability net liability (asset) position (asset) (a) (b) (a) - (b) $ 3,234 $ 5,378 $ (2,144) 5,459 18,794 - 5,459 18,794 84 234 - 84 234 11,624 - 11,624 (153) - (153) - 4,784 2,112 17,914 (4,784) (2,112) (17,914) - 6 6 409 (6) (6) (409) (11,763) 24,114 285,567 (11,763) (73) 12,974 $ 247,987 73 11,140 37,580 (128) 37 3,271 (128) (1) 292 5,670 1 (255) (2,399) $ $ $ $ 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%) 133,478 $ (107) 68,511 $ (783) 15,639 (1,352) 75,931 (2,033) 37,580 (2,399) 6,139 (2,708) 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, 2024 (amounts expressed in thousands) Expense - For the year ended June 30, 2024, the City recognized the following pension and OPEB expense: PSPRS Police PSPRS Firefighters $ Pension Expense 17,000 10,046 OPEB Expense (Income) $ (235) (251) Deferred outflows/inflows of resources - At June 30, 2024, 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 $ $ 24,904 4,414 $ 8,304 9,624 47,246 $ 213 - $ 213 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 101 $ 66 $ 129 296 999 - $ 999 Pension Deferred Deferred outflow inflows of resources of resources Health insurance premium benefit Deferred Deferred outflow inflows of resources of resources $ $ 15,901 3,584 $ 4,371 5,763 29,619 $ 93 3,092 - $ 3,092 23 32 $ 47 $ 7 109 580 21 - $ 601 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024. 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, 2025 2026 2027 2028 2029 Thereafter 9,230 7,333 12,627 4,847 3,372 - (340) (394) (53) (36) (9) - PSPRS Firefighters Pension Health 4,076 1,914 7,569 2,032 2,267 2,906 (181) (216) 43 (60) (55) (30) 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, 2024, 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 and assumptions used include 94 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 2024, amounts reflect updated mortality improvement assumptions with Scale MP-2021. For June 30, 2024, the actuarial cost method used is the entry age normal method. A 3.97% pay as you go discount/investment rate was used. 2016 2017 2018 2019 2020 2021 2022 2023 2024 Discount rate 2.85% 3.43% 3.62% 3.13% 2.45% 1.92% 3.69% 3.86% 3.97% No actuarial valuation of assets was done as there were no assets at the valuation date and the plan does not have a trust established to hold assets. The amortization method is level percent of payroll amortized over 30 years and the period is open. Measurement Date Actuarial valuation date Inflation Salary Increases Discount rate Mortality rates Pre-retirement Post-retirement Healthcare cost trend rates June 30, 2024 June 30, 2023 2.4% 3.5% including inflation 3.97% Not applicable since plan is closed to new retirees PubG.H-2010 and PubS.H-2010 healthy annuitant mortality table, generational with projection scale MP-2021 5.00%-7.00% The remainder of this page left blank intentionally. 95 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024. Total OPEB liability balance at June 30, 2023 $ Changes for the year Interest Differences between expected and actual experience Changes in assumptions or other inputs Change in benefit terms Benefit payments Net Changes 73 8 (230) 127 255 160 Total OPEB liability balance at June 30, 2024 $ 233 Multi-year schedule of changes in the net OPEB liability is available in the Required Supplementary Information. Discount rate sensitivity The discount rate of 3.97% was used to measure the total OPEB liability. This discount rate is the Fidelity General Obligation AA 20 Year Yield as of June 30, 2024. 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 2.97% 229 $ $ 1% Increase 3.97% 233 $ 4.97% 234 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. 5.00% Total OPEB liability $ Healthcare Cost Trend Rates 6.00% 255 96 $ 233 $ 7.00% 206 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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 FY24 OPEB Expense $ 8 (504) (201) (697) $ Deferred outflows/inflows of resources At June 30, 2024, 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 $ 274 328 $ 602 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, 2025 2026 2027 2028 2029 Thereafter $ $ (602) (602) The remainder of this page left blank intentionally. 97 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, 2024. The remainder of this page left blank intentionally. 98 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (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, enhancing public infrastructure, increasing the City's employment base, increasing the City's assessed property valuation and increasing the City's general tax revenues. The City shall make periodic payments based on a percentage of transaction privilege taxes received by the City for a certain length of time as entered into the agreement after occupancy. 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, 2024 $ 5,190 The remainder of this page left blank intentionally. 99 CITY OF GLENDALE, ARIZONA Notes to the Financial Statements June 30, 2024 (amounts expressed in thousands) XXI. Implementation of new accounting principles The City adopted the provisions of GASB Statement No. 100, Accounting Changes and Error Corrections. This statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This statement provides the accounting and financial reporting for each type of accounting change and error corrections. The City adopted the requirements of the statement effective July 1, 2023 and has applied the provisions of this standard to the beginning of the period of adoption. XXII. Subsequent Events On July 16, 2024, the City of Glendale defeased $25,050 of the outstanding Transportation series 2015 bonds by placing $25,106 in cash from existing resources in trust to provide for future debt service payments on the bond. Accordingly, the assets and liabilities for the defeased obligation are not included in the City's financial statements. The defeasance advance refunded the bonds maturing in 2026-2030. The defeasance will result in a debt service savings of $4,816 and an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $1,775. On September 12, 2024, the City of Glendale closed on $43,075 tax exempt General Obligation bond series 2024 with The Bank of New York Mellon, whereby the proceeds were used to fund public safety, streets, 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 October 3, 2024, Moody's Ratings upgraded the City of Glendale's issuer rating from 'A1' to 'Aa3. The upgrade reflected substantial strengthening of the city's economy and tax base, with revenue growth, and a much improved financial position supported by improved fiscal policies. 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, 2024 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, 2024 (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 percentage 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 percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability ASRS-Long-term disability City's proportion of the net OPEB liability City's proportionate share of the net OPEB liability City's covered payroll City's proportionate share of the net OPEB liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability 2024 (2023) 0.692580% $ 112,069 $ 66,935 Reportings fiscal year (measurement date) 2023 2022 (2022) (2021) 0.682010% 0.683110% $ 111,319 $ 89,758 $ 68,377 $ 69,867 2021 (2020) 0.665190% $ 115,254 $ 70,766 167.43% 162.08% 128.47% 162.87% 75.47% 74.26% 78.58% 69.33% Reportings fiscal year (measurement date) 2023 2022 (2022) (2021) 0.68454% 0.68500% $ (3,821) $ (3,337) $ 68,377 $ 69,867 2021 (2020) 0.67104% $ (476) $ 70,766 2024 (2023) 0.69898% $ (3,774) $ 66,935 (5.64)% (5.59)% (4.78)% (0.67)% 134.37% 137.79% 130.24% 104.33% Reportings fiscal year (measurement date) 2023 2022 (2022) (2021) 0.68238% 0.68350% $ 63 $ 141 $ 68,377 $ 69,867 2021 (2020) 0.66804% $ 507 $ 70,766 2024 (2022) 0.69509% $ 91 $ 66,935 0.14% 0.09% 0.20% 0.72% 93.70% 95.40% 90.38% 68.01% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 104 2020 (2019) 0.670370% $ 97,547 $ 69,407 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 $ 54,853 140.54% 143.16% 162.06% 176.38% 171.87% 168.19% 73.24% 73.40% 69.92% 67.06% 68.35% 69.49% 2020 (2019) 0.67599% $ (187) $ 69,407 2019 (2018) 0.69452% (250) 67,340 2018 (2017) 0.670580% $ (365) $ 64,059 ''2017 - 2014 ''(2016 - 2013) Information Not Available (0.27)% (0.37)% (0.57)% 101.62% 102.20% 103.57% 2020 (2019) 0.67335% $ 439 $ 69,407 2019 (2018) 0.69218% 361 67,340 2018 (2017) 0.666740% $ 242 $ 64,059 0.63% 0.54% 0.38% 72.85% 77.83% 84.44% $ $ $ $ ''2017 - 2014 ''(2016 - 2013) Information Not Available 105 $ $ 2015 (2014) 0.619749% 91,702 54,523 CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2024 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: Pension Total pension liability: 2024 (2023) $ 7,751 30,909 - 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) 7,591 3,539 (140) - 8,375 - (20,216) 38,680 431,660 470,340 (19,339) 28,444 403,216 431,660 (16,697) 18,803 384,413 403,216 (14,109) 28,331 356,082 384,413 6,951 3,648 29,092 $ $ 68,511 $ $ $ City's net pension liability (asset) as a percentage of covered payroll 38,554 177.70% 177,969 3,339 (15,842) $ (19,339) (284) 145,843 236,644 382,487 $ 49,173 85.43% Covered payroll 2021 (2020) $ 8,002 26,063 - 20,236 - (20,216) (133) 19,342 382,487 401,829 Plan fiduciary net position as a percentage of the total pension liability Reporting fiscal year (measurement date) 2023 2022 (2022) (2021) $ 7,385 $ 7,630 29,268 28,010 - $ $ 35,366 139.04% $ $ $ (14,109) (188) 55 8,955 167,953 176,908 $ 166,572 $ 207,505 58.69% $ 34,313 46.02% $ 485.45% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 106 17,737 3,159 2,301 (16,697) (243) 59,736 176,908 236,644 88.61% $ 21,385 3,044 52,247 $ 35,635 582.31% 2020 (2019) $ 8,355 24,443 - 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 - 661 7,193 (4,084) - 6,973 8,114 (3,593) 10,446 1,067 - 2,845 19,686 (13,051) 27,601 328,483 356,084 (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 $ $ 16,942 2,880 8,990 $ (13,051) (157) (10) 15,594 152,491 (130) 167,955 $ 188,129 $ $ $ (14,430) (152) 192 9,864 142,627 152,491 $ 175,992 47.17% $ 36,383 517.08% 10,982 3,351 9,921 $ $ $ (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 $ $ 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 $ 2015 (2014) 5,483 14,973 3,331 47.24% $ 466.74% 107 33,350 385.81% 47.27% $ 31,815 381.20% CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (assets)/liability and related ratios Agent plans June 30, 2024 (amounts expressed in thousands) Public Safety Personnel Retirement System - Police: OPEB Total OPEB liability: 2024 (2023) $ 133 415 - 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) 2023 2022 (2022) (2021) $ 142 $ 154 409 438 - (56) - (242) 118 (742) - (322) - (265) 227 5,770 5,997 (233) 194 5,576 5,770 (239) (389) 5,965 5,576 (280) 1 5,964 5,965 $ $ $ 91 16 487 (265) (2) 327 6,453 6,780 $ (783) Plan fiduciary net position as a percentage of the total OPEB liability $ City's net OPEB liability (asset) as a percentage of covered payroll 38,554 (2.03)% $ $ $ 134 10 (267) (233) (5) (361) 6,814 6,453 $ (683) 113.06% Covered payroll 2021 (2020) $ 160 443 - $ $ 160 11 1,474 (239) (6) 1,400 5,414 6,814 $ 186 8 68 (280) (6) (24) 5,438 5,414 $ (1,238) $ 551 111.85% $ 35,366 (1.93)% $ 122.20% $ 34,313 90.77% $ (3.61)% 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 35,635 1.55% 2020 (2019) $ 106 481 - 2019 (2018) $ 102 467 - 2018 (2017) $ 119 464 11 (950) 76 (127) - 211 (359) (296) (583) 6,548 5,965 (293) 149 6,399 6,548 (359) 87 6,312 6,399 $ $ $ $ $ 179 5 276 (296) (5) 159 5,150 130 5,439 $ 526 $ $ 75 1 343 (293) (5) 1 122 5,028 5,150 $ 202 541 (359) (5) 379 4,649 5,028 $ 1,398 $ 1,371 91.18% $ 36,383 1.45% $ 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, 2024 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: Pension Total pension liability: 2024 (2023) $ 5,459 18,794 - 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) (2,199) 2,525 6,137 - 4,174 - (11,763) 24,114 261,453 285,567 (10,388) 13,036 248,417 261,453 (11,957) 15,750 232,667 248,417 (8,309) 16,484 216,183 232,667 4,784 2,112 17,914 $ $ 37,580 $ $ $ City's net pension liability (asset) as a percentage of covered payroll 21,927 171.39% 87,874 1,875 (9,728) $ (10,389) (175) 69,457 165,556 235,013 $ 26,440 86.84% Covered payroll 2021 (2020) $ 4,791 15,828 - 11,624 - (11,763) (73) 12,974 235,013 247,987 Plan fiduciary net position as a percentage of the total pension liability Reporting fiscal year (measurement date) 2023 2022 (2022) (2021) $ 4,979 $ 4,680 18,119 16,890 - $ $ 21,533 112.78% $ $ $ (8,309) (133) 5 4,569 122,583 127,152 $ 82,861 $ 105,515 66.64% $ 20,625 54.65% $ 401.75% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available 110 9,360 2,004 1,642 (11,957) (172) 38,405 127,151 165,556 89.89% $ 11,644 2,057 36,833 $ 20,122 524.38% 2020 (2019) $ 4,831 15,287 - 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 - (4,945) 3,704 (536) - 787 5,437 (2,923) 6,345 (823) - 1,452 9,623 (8,883) 9,994 206,190 216,184 (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 $ $ 9,335 1,504 6,476 $ (8,883) (113) 8,319 114,265 122,584 $ 93,600 $ $ $ (6,668) (113) 54 8,751 105,514 114,265 $ 91,925 56.70% $ 22,868 409.31% 6,023 2,050 7,405 $ $ $ (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% 111 $ $ 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 $ 2015 (2014) 3,805 9,672 1,658 59.37% $ 20,570 301.00% 59.97% $ 19,291 299.08% CITY OF GLENDALE, ARIZONA Schedule of changes in the City's net pension/OPEB (asset)/liability and related ratios Agent plans June 30, 2024 (amounts expressed in thousands) Public Safety Personnel Retirement System - Fire: OPEB Total OPEB liability: 2024 (2023) 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) 84 234 - Reporting fiscal year (measurement date) 2023 2022 (2022) (2021) $ 83 $ 83 220 230 (346) - 174 - (128) 37 3,234 3,271 (116) 248 2,986 3,234 (108) (141) 3,127 2,986 (122) 365 3,110 3,475 $ $ $ $ (2,399) $ City's net OPEB liability (asset) as a percentage of covered payroll 21,927 (10.94)% $ $ $ 4 4 (225) (116) (4) (337) 5,715 5,378 $ (2,144) $ $ 2 2 1,257 (108) (5) 1,148 4,567 5,715 $ 1 1 58 (122) (5) (67) 4,634 4,567 $ (2,729) $ (1,092) 166.31% $ 21,533 (9.96)% $ 191.39% $ 20,625 146.07% $ (13.23)% 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 112 82 231 - 30 31 173.35% Covered payroll $ (153) - 6 6 409 (128) (1) 292 5,378 5,670 Plan fiduciary net position as a percentage of the total OPEB liability 2021 (2020) 20,122 (7.16)% 2020 (2019) $ $ $ 52 251 - 2019 (2018) $ $ 56 243 3 (503) 31 (29) - (39) (145) (120) (289) 3,399 3,110 (113) 149 3,250 3,399 (153) (35) 3,285 3,250 $ $ $ 242 (120) (4) 118 4,516 4,634 $ (1,524) 22,868 (6.66)% $ $ $ 300 (113) (4) (1) 182 4,334 4,516 $ 465 (153) (4) 308 4,026 4,334 $ (1,117) $ (1,084) 149.05% $ 53 238 - 2018 (2017) 132.86% $ 21,360 (5.23)% 2017 - 2015 (2016 - 2014) Information Not available 133.36% $ 20,840 (5.20)% 113 CITY OF GLENDALE, ARIZONA Schedule of OPEB Liability-City OPEB plan June 30, 2024 (amounts expressed in thousands) June 30, 2024 Total OPEB Liability-City OPEB plan June 30, 2023 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 $ 8 (230) 127 255 160 $ 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 $ 73 $ 490 $ 613 $ 2,161 Total OPEB Liability balance at June 30, 2023 $ 233 $ 73 $ 490 $ 613 Covered Employee Payroll $ - $ - $ - $ - Total OPEB Liability as a percentage of covered employee payroll Discount Rate N/A N/A N/A N/A 3.97% 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, 2024 (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 2023 2022 10,420 $ 9,802 $ 2024 11,980 $ $ 11,980 - $ 10,420 - $ $ 69,620 $ 66,935 $ 17.21% 15.57% 2024 9,802 - $ 9,030 - 68,377 $ 69,867 Reportings fiscal year 2023 2022 96 $ 171 110 $ $ 110 - $ 96 - $ $ 69,620 $ 66,935 $ 2024 2021 9,030 14.34% $ 0.16% $ 141 $ $ 141 - $ 122 - $ $ 69,620 $ 66,935 $ 0.20% 0.18% 2021 $ 302 171 - $ 302 - 68,377 $ 69,867 0.14% 0.25% Reportings fiscal year 2023 2022 122 $ 155 $ 12.92% 0.43% 2021 $ 139 155 - $ 139 - 68,377 $ 69,867 0.23% 0.20% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 116 $ 2020 8,377 $ 2019 8,111 $ 2018 7,414 $ 2017 7,007 $ 2016 6,472 $ 2015 6,071 $ 8,377 - $ 8,111 - $ 7,414 - $ 7,007 - $ 6,472 - $ 6,071 - $ 70,766 $ 69,407 $ 67,340 $ 64,059 $ 58,301 $ 54,853 11.84% 11.69% 2020 11.01% 2019 10.94% 2018 2017 $ 345 $ 327 $ 385 $ 361 $ 345 - $ 327 - $ 385 - $ 361 - $ 70,766 $ 69,407 $ 67,340 $ 64,059 0.49% 0.47% 2020 0.57% 2019 2018 2017 120 $ 119 $ 96 $ 91 $ 120 - $ 119 - $ 96 - $ 91 - $ 70,766 $ 69,407 $ 67,340 $ 64,059 0.17% 0.14% 2016 - 2015 Information Not Available 0.56% $ 0.17% 11.10% 0.14% 117 2016 - 2015 Information Not Available 11.07% CITY OF GLENDALE, ARIZONA Schedule of the City's pension/OPEB contributions June 30, 2024 (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 2023 2022 6,771 $ 8,647 $ 2024 9,624 $ $ 9,624 - $ 6,771 - $ $ 40,854 $ 38,554 $ 23.56% 17.56% 2024 177,717 (169,070) $ 18,012 - 35,366 $ 34,313 Reporting fiscal year 2023 2022 94 $ 57 129 $ $ 129 - $ 94 - $ $ 40,854 $ 38,554 $ 0.32% 0.24% $ $ $ 5,763 - $ 4,482 - $ $ 23,020 $ 21,927 $ 20.43% 155 57 - $ 155 - 35,366 $ 34,313 $ $ 7 - $ 4 - $ 23,020 $ 21,927 0.03% 0.02% 0.45% $ 2021 10,077 87,552 (82,251) $ 10,077 - 21,533 $ 20,625 406.59% Reporting fiscal year 2023 2022 4 $ 7 2021 $ Reporting fiscal year 2023 2022 4,482 $ 5,301 $ 52.49% 0.16% 2024 5,763 2024 2021 18,012 502.51% $ 25.03% $ 48.86% 2021 2 $ 3 $ 2 - $ 3 - $ 21,533 $ 20,625 0.01% 0.01% The notes to pension/OPEB plan schedules are an integral part of this schedule. Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available. 118 $ 2020 17,500 $ 2019 16,942 $ 2018 10,982 $ 2017 13,678 $ 2016 13,527 $ 2015 9,691 $ 17,500 - $ 17,306 (364) $ 10,828 154 $ 13,678 - $ 13,527 - $ 9,691 - $ 35,635 $ 36,383 $ 36,201 $ 37,234 $ 34,196 $ 33,350 49.11% 47.57% 2020 29.91% 2019 36.74% 2018 2017 $ 187 $ 179 $ 75 $ 202 $ 187 - $ 183 (4) $ 135 (60) $ 202 - $ 35,635 $ 36,383 $ 36,201 $ 37,234 0.52% 0.50% 0.37% 39.56% 29.06% '''2016 - 2015 Information Not Available 0.54% $ 2020 9,451 $ 2019 9,335 $ 2018 6,023 $ 2017 6,578 $ 2016 7,339 $ 2015 4,942 $ 9,451 - $ 9,435 (100) $ 5,607 416 $ 6,578 - $ 7,339 - $ 4,942 - $ 20,122 $ 22,868 $ 21,360 $ 20,840 $ 20,296 $ 20,570 46.97% 41.26% 2020 26.25% 2019 31.56% 2018 2017 $ 1 $ - $ - $ - $ 1 - $ - $ - $ - $ 20,122 $ 22,868 $ 21,360 $ 20,840 0.00% 0.00% 0.00% 0.00% 119 36.16% 2016 - 2015 Information Not Available 24.03% CITY OF GLENDALE, ARIZONA Notes to Net Pension/OPEB (assets)/liability and contributions June 30, 2024 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 2022 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 2022 actuarial valuation, the investment rate of return was decreased from 7.30% to 7.20%. In the 2019 actuarial valuation, the investment rate of return was decreased from 7.40% to 7.3%. 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 2022 actuarial valuation, wage growth was changed from 3.5% to a range of 3.0% to 6.25% 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, 2024 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, 2024 (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 $ 180,880 25,536 133,391 145 15,004 2,260 2,121 1,584 360,921 Final $ 180,880 25,536 133,391 145 15,004 2,260 2,121 1,584 360,921 Variance with Final Budget Actual $ 198,529 20,406 119,661 97 28,825 2,110 11,935 1,077 382,640 $ 17,649 (5,130) (13,730) (48) 13,821 (150) 9,814 (507) 21,719 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations 58,467 179,439 55,829 27,770 1,003 5,000 85,437 412,945 58,936 180,923 59,548 27,652 1,003 4,232 91,036 423,330 51,994 173,596 33,916 25,024 1,541 24,286 310,357 6,942 7,327 25,632 2,628 (538) 4,232 66,750 112,973 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Proceeds from land sale Transfer in Transfer out Total other financing sources (uses) 398 104,127 (115,080) (10,555) 398 104,127 (115,080) (10,555) 374 481 47,213 (105,667) (57,599) (24) 481 (56,914) 9,413 (47,044) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 204,131 141,552 122 $ 204,131 131,167 $ 264,746 279,430 $ 60,615 148,263 City of Glendale, Arizona Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2024 (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. Proceeds from disposal of assets. Proceeds from land sale. 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. Subscription based internet technology arrangement. Leases. 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 589,787 (264,746) 4,704 1,655 (8,840) (498) (374) (481) (2,702) 45,516 (47,213) 105,667 422,475 310,357 150 514 383 (8,840) (11) 302,553 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Transportation Special Revenue Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Intergovernmental Local Charges for services Investment income (loss) Miscellaneous Amounts available for appropriation $ 44,212 8,692 1,047 277 548 54,776 Final $ 44,212 8,692 1,047 277 548 54,776 Variance with Final Budget Actual $ 48,902 1,843 810 462 7,853 578 60,448 $ 4,690 (6,849) 810 (585) 7,576 30 5,672 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Street Maintenance Contingency Capital outlay Total charges to appropriations 19,847 3,000 25,040 47,887 810 19,727 2,655 28,098 51,290 809 30,262 965 32,036 1 (10,535) 2,655 27,133 19,254 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer out Total other financing sources (uses) (29,651) (29,651) (29,651) (29,651) 12 (9,978) (9,966) 12 19,673 19,685 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 82,173 59,411 $ 82,173 56,008 $ 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. 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. Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 124 113,410 131,856 163,892 (113,410) (12) 9,978 60,448 32,036 12 32,048 $ 31,237 75,848 CITY OF GLENDALE, ARIZONA Notes to Required Supplementary Information June 30, 2024 (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, 2024 (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, 2024 City of Glendale, Arizona Budgetary Comparison Schedule Other Construction For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 10,340 10,340 $ 10,340 10,340 CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Public Works Community Services Contingency Capital outlay Total charges to appropriations 2,977 67,731 70,708 (19) 2,977 70,825 73,783 658 39 210 12,298 13,205 (658) (39) (229) 2,977 58,527 60,578 OTHER FINANCING SOURCES (USES) Long term debt issued Premium on long term debt issued Transfer in Transfer out Total other financing sources (uses) 23,642 1,100 (269) 24,473 23,642 1,100 (79) 24,663 32,651 1,930 (15) 34,566 9,009 1,930 (1,100) 64 9,903 35,094 (11,141) $ 35,094 (14,026) $ 6,054 37,755 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. Long term debt issued. Premium on long term debt issued. 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 50,960 (6,054) (32,651) (1,930) 15 10,340 13,205 13,205 $ (29,040) 51,781 City of Glendale, Arizona Budgetary Comparison Schedule Municipal Property Corporation Debt Service For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Investment income (loss) Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 5,110 292 5,402 $ 5,110 292 5,402 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations 20 20 7 13 4,475 8,659 13,154 4,475 8,659 13,154 2,235 5,405 7,647 2,240 3,254 5,507 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 10,350 10,350 10,350 10,350 10,350 10,350 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 12,008 9,204 $ 12,008 9,204 $ 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 14,197 22,302 29,949 (14,197) (10,350) 5,402 7,647 7,647 $ 2,189 13,098 City of Glendale, Arizona Budgetary Comparison Schedule General Obligation For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Taxes Miscellaneous Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Principal Interest Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 22,838 22,838 Final $ 325 6,765 3,029 10,119 $ 900 13,619 22,838 22,838 $ 325 16,765 3,029 20,119 $ 900 3,619 $ 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: 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. $ 131 Variance with Final Budget Actual 22,322 15 22,337 $ (516) 15 (501) 7 26,850 5,987 32,844 318 (10,085) (2,958) (12,725) 1,565 (8,942) $ 665 (12,561) 23,902 (1,565) 22,337 32,844 32,844 City of Glendale, Arizona Budgetary Comparison Schedule Excise Tax Revenue For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation $ Final - $ Variance with Final Budget Actual - $ 549 549 $ 549 549 CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Principal Interest Total charges to appropriations 17 14,245 7,755 22,017 17 14,245 7,755 22,017 1,155 61,040 7,755 69,950 (1,138) (46,795) (47,933) OTHER FINANCING SOURCES (USES) Refunding debt issued Premium on long term debt issued Payment to refunded bonds escrow agent Loss on bond defeasance Transfer in Total other financing sources (uses) 22,000 22,000 22,000 22,000 128,705 15,166 (140,180) (2,917) 69,172 69,946 128,705 15,166 (140,180) (2,917) 47,172 47,946 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 471 454 $ 471 454 $ 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. Refunding debt issued. Payment to refunded bonds escrow agent. Premium on long term debt issued. (Gain)/Loss on bond defeasance 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. $ 132 643 1,188 71,138 (643) (128,705) 140,180 (15,166) 2,917 (69,172) 549 69,950 69,950 $ 172 734 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. 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. 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. 133 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. Excise Tax Bond Construction Fund This fund accounts for the city hall reconstruction project. 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. 134 City of Glendale, Arizona Combining Governmental Balance Sheet Non-Major Governmental Funds Summary by Fund Type June 30, 2024 (amounts expressed in thousands) Special Revenue Funds 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 $ 34,768 Debt Service Funds $ Capital Projects Funds 22,659 $ 103,712 Total NonMajor Governmental Funds Permanent Funds $ 6,815 $ 167,954 5,863 32 13,147 42 1,243 5,008 60,103 22,659 64 47,172 150,948 164 6,979 6,091 32 13,147 42 48,415 5,008 240,689 LIABILITIES Vouchers payable Retainage payable Compensated absences - current Due to other funds Deposits Unearned revenue Matured interest payable Matured bonds payable Total liabilities 3,617 61 5,667 67 9,608 19,020 3,915 17,595 21,510 2,172 496 22 2,690 - 5,789 496 61 5,667 67 9,630 3,915 17,595 43,220 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue Deferred Inflows of Resources- leases Total deferred inflows of resources 180 4,871 5,051 - - 164 164 344 4,871 5,215 FUND BALANCES Fund balances: Nonspendable Restricted Committed Assigned Total fund balances 30,324 2,350 3,358 36,032 1,149 1,149 148,258 148,258 6,815 6,815 6,815 179,731 2,350 3,358 192,254 Total liabilities, deferred outflows of resources and fund balances $ 60,103 135 $ 22,659 $ 150,948 $ 6,979 $ 240,689 City of Glendale, Arizona Combining Balance Sheet Non-Major Special Revenue Funds June 30, 2024 (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 $ 432 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: Restricted Committed Assigned Total fund balances Total liabilities and fund balances Highway User Revenue $ 26,318 $ 8,018 $ 34,768 5,387 1,895 18 7,732 3 1,966 28,287 473 32 9,286 24 1,243 5,008 24,084 5,863 32 13,147 42 1,243 5,008 60,103 1,368 2 292 5,385 7,047 820 27 847 1,429 32 5,375 67 4,223 11,126 3,617 61 5,667 67 9,608 19,020 - - 180 4,871 5,051 180 4,871 5,051 685 685 27,440 27,440 2,199 2,350 3,358 7,907 30,324 2,350 3,358 36,032 7,732 136 $ Total NonMajor Special Revenue Funds Other Special Revenue $ 28,287 $ 24,084 $ 60,103 City of Glendale, Arizona Combining Balance Sheet Non-Major Debt Service Funds June 30, 2024 (amounts expressed in thousands) Formerly NonMajor Fund General Obligation ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Total assets $ LIABILITIES Vouchers payable Matured interest payable Matured bonds payable Total liabilities - Highway User $ - Formerly NonMajor Fund Excise Tax Revenue Transportation $ 6,493 $ - Total NonMajor Debt Service Funds Certificates of Participation $ 16,166 $ 22,659 - - 6,493 - 16,166 22,659 - - 1,084 4,530 5,614 - 2,831 13,065 15,896 3,915 17,595 21,510 - - 879 879 - 270 270 1,149 1,149 DEFERRED INFLOWS OF RESOURCES FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances $ - $ - 137 $ 6,493 $ - $ 16,166 $ 22,659 City of Glendale, Arizona Combining Balance Sheet Non-Major Capital Projects Funds June 30, 2024 (amounts expressed in thousands) Streets Construction ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Restricted cash and investments Total assets $ LIABILITIES Vouchers payable Retainage payable Unearned revenue Total liabilities FUND BALANCES Fund balances: Restricted Total fund balances Total liabilities and fund balances $ 2,143 Fire and Police Construction $ 21,320 Parks Bond Construction $ 4,645 Excise Tax Bond Construction $ - Total NonMajor Capital Projects Funds Development Impact Fees $ 75,604 $ 103,712 64 2,207 21,320 4,645 47,172 47,172 75,604 64 47,172 150,948 415 7 22 444 1,456 489 1,945 75 75 - 226 226 2,172 496 22 2,690 1,763 1,763 19,375 19,375 4,570 4,570 47,172 47,172 75,378 75,378 148,258 148,258 2,207 $ 21,320 138 $ 4,645 $ 47,172 $ 75,604 $ 150,948 City of Glendale, Arizona Combining Balance Sheet Non-Major Permanent Funds June 30, 2024 (amounts expressed in thousands) Cemetery ASSETS Equity in pooled cash and investments Receivables, net of allowance for doubtful accounts: Accounts Total assets $ 164 6,979 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources- unavailable revenue 164 FUND BALANCES Fund balances: Nonspendable Total fund balances Total liabilities, deferred inflows of resources and fund balances 6,815 6,815 6,815 $ 139 6,979 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, 2024 (amounts expressed in thousands) Special Revenue Funds 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 Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 1,513 48,089 76 871 364 162 430 51,505 Debt Service Funds $ 12 12 Capital Projects Funds $ 16,043 4,360 20,403 Total Non-Major Governmental Funds Permanent Funds $ 425 425 $ 17,556 48,089 76 871 364 4,959 430 72,345 912 4,615 2,142 20,572 16,800 2 - 421 427 292 964 - 914 5,036 2,569 20,864 17,764 170 4 6,575 51,790 (285) 17,595 7,831 25,428 (25,416) 16,962 19,066 1,337 425 17,765 7,835 23,537 96,284 (23,939) OTHER FINANCING SOURCES (USES) Long term debt issued Premium on long term debt issued Proceeds from equipment disposal Subscription-based IT arrangements Transfer in Transfer out Total other financing sources (uses) 96 41 4,232 (567) 3,802 25,480 (43) 25,437 74,109 6,923 3,833 (101) 84,764 - 74,109 6,923 96 41 33,545 (711) 114,003 Net change in fund balances Fund balances - beginning, as previously presented Change within financial reporting entity (nonmajor to major) Fund balances - beginning, as adjusted Fund balances - ending 3,517 32,515 32,515 36,032 21 3,336 (2,208) 1,128 1,149 $ 86,101 62,157 62,157 148,258 425 6,390 6,390 6,815 90,064 104,398 (2,208) 102,190 192,254 $ $ 140 $ $ 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, 2024 (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 Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 5,232 118 5,350 $ $ 1,508 19,286 132 43 20,969 Total Non-Major Special Revenue Funds Other Special Revenue $ 5 23,571 76 739 321 162 312 25,186 $ 1,513 48,089 76 871 364 162 430 51,505 6,117 32 2 6,151 16,800 393 17,193 912 4,615 2,142 14,455 138 2 6,182 28,446 912 4,615 2,142 20,572 16,800 170 4 6,575 51,790 (801) 3,776 (3,260) (285) - 42 43 (559) (474) 54 41 4,189 (8) 4,276 96 41 4,232 (567) 3,802 (801) 1,486 685 $ 3,302 24,138 27,440 1,016 6,891 7,907 3,517 32,515 36,032 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Subscription-based IT arrangements Transfer in Transfer out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending Highway User Revenue 141 $ $ 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, 2024 (amounts expressed in thousands) Formerly NonMajor Fund General Obligation REVENUES 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 Transfer out Total other financing sources (uses) Net change in fund balances Fund balances - beginning, as previously presented Change within financial reporting entity (nonmajor to major) Fund balances - beginning, as adjusted Fund balances - ending $ - Highway User $ - Formerly NonMajor Fund Excise Tax Revenue Transportation $ 1 1 $ - Total Non-Major Debt Service Funds Certificates of Participation $ 11 11 $ 12 12 - - 1 - 1 2 - - 4,530 2,169 6,700 (6,699) - 13,065 5,662 18,728 (18,717) 17,595 7,831 25,428 (25,416) - (43) (43) 6,704 6,704 - 18,776 18,776 25,480 (43) 25,437 1,565 (1,565) - (43) 43 43 - 5 874 874 879 643 (643) - 59 211 211 270 21 3,336 (2,208) 1,128 1,149 $ 142 $ $ $ $ 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, 2024 (amounts expressed in thousands) Streets Construction REVENUES Licenses and permits Investment income (loss) Total revenues $ Fire and Police Construction - $ - Parks Bond Construction $ Excise Tax Bond Construction - $ - Total Non-Major Capital Projects Funds Development Impact Fees $ 16,043 4,360 20,403 $ 16,043 4,360 20,403 EXPENDITURES Current: Public Safety Public Works Community Services Street Maintenance Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 964 2,992 3,956 (3,956) 421 9,619 10,040 (10,040) 290 760 1,050 (1,050) 383 383 (383) 44 2 3,591 3,637 16,766 421 427 292 964 16,962 19,066 1,337 OTHER FINANCING SOURCES (USES) Long term debt issued Premium on long term debt issued Transfer in Transfer out Total other financing sources (uses) 3,833 (18) 3,815 25,873 1,529 (78) 27,324 5,736 339 (5) 6,070 42,500 5,055 47,555 - 74,109 6,923 3,833 (101) 84,764 Net change in fund balances Fund balances - beginning Fund balances - ending (141) 1,904 1,763 17,284 2,091 19,375 5,020 (450) 4,570 47,172 47,172 16,766 58,612 75,378 86,101 62,157 148,258 $ $ 143 $ $ $ $ City of Glendale, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Permanent Funds For the Year Ended June 30, 2024 (amounts expressed in thousands) Cemetery REVENUES Investment income (loss) Total revenues Net change in fund balances Fund balances - beginning Fund balances - ending $ $ 144 425 425 425 6,390 6,815 City of Glendale, Arizona Budgetary Comparison Schedule Police and Fire Sales Tax Fund For the Year Ended June 30, 2024 (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 41,713 41,713 Final $ (47,213) (47,213) $ 20,366 14,866 41,713 41,713 $ (47,213) (47,213) $ 20,366 14,866 45,516 45,516 $ 5 (47,213) (47,208) $ 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. $ 145 Variance with Final Budget Actual 23,368 21,676 21,676 (23,368) (5) 47,213 45,516 - 3,803 3,803 5 5 $ 3,002 6,810 City of Glendale, Arizona Budgetary Comparison Schedule Community Development Block Grants Fund For the Year Ended June 30, 2024 (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: Total capital outlay Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 7,827 7,827 Final $ 7,827 7,827 Variance with Final Budget Actual $ 5,232 118 5,350 $ (2,595) 118 (2,477) 8,814 873 11,691 873 6,153 - 5,538 873 9,687 12,564 6,153 6,411 1,860 (2,877) $ 1,490 687 1,860 - $ 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. 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 6,840 (1,490) 5,350 6,153 (2) 6,151 $ (370) 3,564 City of Glendale, Arizona Budgetary Comparison Schedule Highway User Revenue For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Licenses and permits Intergovernmental Charges for services Fines and forfeitures 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 $ 240 19,380 82 19,702 Final $ 240 19,380 82 19,702 Variance with Final Budget Actual $ 1,508 19,286 132 43 20,969 $ 1,268 (94) 132 (39) 1,267 14,342 14,342 16,808 (2,466) 1,500 3,966 5,466 19,808 1,500 3,966 5,466 19,808 393 393 17,201 1,500 3,573 5,073 2,607 (5,762) (5,762) (5,762) (5,762) 42 43 (559) (474) 42 43 5,203 5,288 15,998 10,130 $ 15,998 10,130 $ 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. $ 147 24,227 27,521 44,722 (24,227) (42) (43) 559 20,969 17,201 (8) 17,193 $ 8,229 17,391 City of Glendale, Arizona Budgetary Comparison Schedule Other Special Revenue For the Year Ended June 30, 2024 (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 $ 8 10,725 64 781 246 5 70,670 82,499 Final $ 8 10,725 64 781 246 5 70,670 82,499 Variance with Final Budget Actual $ 5 23,769 86 813 321 162 175 25,331 $ (3) 13,044 22 32 75 157 (70,495) (57,168) CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Public Safety Public Works Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations 1,147 12,668 2,243 4,138 1,369 55,371 18,728 95,664 1,578 15,793 3,571 12,801 1,369 9,520 19,286 63,918 925 4,739 2,138 14,452 6,097 28,351 653 11,054 1,433 (1,651) 1,369 9,520 13,189 35,567 OTHER FINANCING SOURCES (USES) Proceeds from equipment disposal Transfer in Transfer out Total other financing sources (uses) 4,652 (1,100) 3,552 4,652 (1,100) 3,552 10 4,189 (8) 4,191 10 (463) 1,092 639 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 26,866 17,253 $ 26,866 48,999 $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Interest earned on leases not available for appropriation Lease revenue reported on a GAAP basis. Revenue reported on a GAAP basis. Proceeds from disposal of assets. Miscellaneous. 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. 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. $ 148 6,154 7,325 35,676 (6,154) 141 (74) (213) (10) 1 (4,189) 8 25,186 28,351 10 44 41 28,446 $ (20,712) (41,674) City of Glendale, Arizona Budgetary Comparison Schedule Highway User Debt Service Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original OTHER FINANCING SOURCES (USES) Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Final 43 43 $ $ $ 43 43 $ $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: 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: Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds. $ 149 Variance with Final Budget Actual (43) $ (43) (43) (43) 43 - (43) (43) 43 - - $ City of Glendale, Arizona Budgetary Comparison Schedule Transportation Debt Service Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation Final $ - $ Variance with Final Budget Actual - $ 1 1 $ 1 1 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: General Government Debt service: Principal Interest Total charges to appropriations 10 10 1 9 4,530 2,169 6,709 4,530 2,169 6,709 4,530 2,169 6,700 9 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 6,704 6,704 6,704 6,704 6,704 6,704 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 627 622 $ 627 622 $ 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. $ 150 874 879 7,579 (874) (6,704) 1 6,700 6,700 $ 247 257 City of Glendale, Arizona Budgetary Comparison Schedule Certificates of Participation Debt Service Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Amounts available for appropriation Final $ - $ Variance with Final Budget Actual - $ 11 11 $ 11 11 CHARGES TO APPROPRIATIONS (OUTFLOWS) General Government Debt service: Principal Interest Total charges to appropriations 5 5 1 4 13,065 5,662 18,732 13,065 5,662 18,732 13,065 5,662 18,728 4 OTHER FINANCING SOURCES (USES) Transfer in Total other financing sources (uses) 18,776 18,776 18,776 18,776 18,776 18,776 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 204 248 $ 204 248 $ 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. $ 151 211 270 18,998 (211) (18,776) 11 18,728 18,728 $ 7 22 City of Glendale, Arizona Budgetary Comparison Schedule Streets Construction Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Street Maintenance Capital outlay Total charges to appropriations $ OTHER FINANCING SOURCES (USES) Long term debt issued Transfer in Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 285 41,257 41,542 Final $ 485 41,522 42,007 Variance with Final Budget Actual $ 964 2,992 3,956 11,356 28,697 (250) 39,803 11,356 28,697 (250) 39,803 3,833 (18) 3,815 1,529 (210) $ 1,529 (675) $ 1,842 1,701 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. $ 152 5,657 (1,842) (3,833) 18 - 3,956 3,956 $ (479) 38,530 38,051 (11,356) (24,864) 232 (35,988) $ 313 2,376 City of Glendale, Arizona Budgetary Comparison Schedule Fire and Police Construction Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Public Safety Capital outlay Total charges to appropriations $ OTHER FINANCING SOURCES (USES) Long term debt issued Premium on long term debt issued Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 2 37,321 37,323 Final $ 2 37,321 37,323 Variance with Final Budget Actual $ 421 9,619 10,040 20,264 (155) 20,109 20,264 (155) 20,109 25,873 1,529 (78) 27,324 4,223 (12,991) $ 4,223 (12,991) $ 2,091 19,375 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. 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. Long term debt issued. Premium on long term debt issued. 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 29,415 (2,091) (25,873) (1,529) 78 - 10,040 10,040 $ (419) 27,702 27,283 5,609 1,529 77 7,215 $ (2,132) 32,366 City of Glendale, Arizona Budgetary Comparison Schedule Parks Bond Construction Fund For the Year Ended June 30, 2024 (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 Premium on long term debt issued Transfer out Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 11,774 11,774 Final $ 11,774 11,774 Variance with Final Budget Actual $ 290 760 1,050 $ (290) 11,014 10,724 6,594 (18) 6,576 6,594 (18) 6,576 5,736 339 (5) 6,070 (858) 339 13 (506) (5,198) $ (5,198) $ (450) 4,570 $ (450) 9,768 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. Long term debt issued. Premium on long term debt issued. 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 5,620 450 (5,736) (339) 5 - 1,050 1,050 City of Glendale, Arizona Budgetary Comparison Schedule Excise Tax Bond Construction For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original CHARGES TO APPROPRIATIONS (OUTFLOWS) Public Works Total charges to appropriations $ - OTHER FINANCING SOURCES (USES) Long term debt issued Premium on long term debt issued Total other financing sources (uses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final $ - $ - $ $ - 155 383 383 $ 42,500 5,055 47,555 $ 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. Long term debt issued. Premium on long term debt issued. 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. Variance with Final Budget Actual 47,172 47,555 (42,500) (5,055) - 383 $ 383 (383) (383) 42,500 5,055 47,555 $ 47,172 City of Glendale, Arizona Budgetary Comparison Schedule Development Impact Fees Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Licenses and permits Investment income (loss) Amounts available for appropriation $ CHARGES TO APPROPRIATIONS (OUTFLOWS) Current: Public Works Community Services Street Maintenance Contingency Capital outlay Total charges to appropriations Budgetary fund balance, July 1 Budgetary fund balances, June 30 15,599 522 16,121 Final $ 58,572 11,273 69,845 $ 53,724 - $ 15,599 522 16,121 $ 16,043 4,360 20,403 64 247 58,508 12,276 71,095 44 2 3,591 3,637 53,724 (1,250) $ 58,612 75,378 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 79,015 (58,612) 20,403 3,637 3,637 $ 444 3,838 4,282 20 (2) 247 58,508 8,685 67,458 $ 4,888 76,628 City of Glendale, Arizona Budgetary Comparison Schedule Cemetery Perpetual Care Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Investment income (loss) Current: Amounts available for appropriation Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ Final - $ $ 6,139 6,139 - $ $ 6,139 6,139 425 $ 425 $ 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 6,390 6,815 6,815 (6,390) 425 - 425 425 $ 251 676 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, 2024 (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 $ 1,968 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 $ 2,869 $ 4,837 3,970 (708) 5,230 122 554 14 3,559 4,092 (708) 554 14 8,789 219 58 277 27,512 (14,357) 13,155 13,374 18,604 16,983 (12,204) 4,779 4,837 8,396 44,495 (26,561) 17,934 18,211 27,000 913 913 288 288 1,201 1,201 409 357 3 100 213 1,082 184 26 6 14 55 285 593 383 6 14 3 155 213 1,367 254 6,387 441 7,082 8,164 235 1,961 89 2,285 2,570 489 8,348 530 9,367 10,734 435 435 151 151 586 586 12,501 4,778 17,279 219 (1,802) 10,918 $ 58 1,127 5,963 277 (675) 16,881 $ 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, 2024 (amounts expressed in thousands) Solid Waste Operating Revenues Intergovernmental Container service Curb service Miscellaneous Other fees Total operating revenues $ 6,273 20,046 26,319 Total Non-Major Enterprise Funds Housing $ 16,882 5 913 17,800 $ 16,882 6,273 20,046 5 913 44,119 Operating Expenses Housing Solid Waste Administrative and general Amortization and depreciation Total operating expenses Operating income (loss) 21,964 110 2,237 24,311 2,008 18,605 251 18,856 (1,056) 18,605 21,964 110 2,488 43,167 952 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 (50) (20) 23 (47) 1,961 390 2,351 8,567 10,918 $ 69 69 (987) 619 971 603 5,360 5,963 $ 19 (20) 23 22 974 619 1,361 2,954 13,927 16,881 $ 160 City of Glendale, Arizona Combining Statement of Cash Flows Non-Major Proprietary Funds - Business-Type Activities For the Year June 30, 2024 (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 $ CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Advances to/due from other funds Net cash provided (used) by noncapital financing activities 26,072 (12,552) (834) (8,332) 4,354 Housing $ Total 17,375 (18,546) 102 (1,069) $ 43,447 (12,552) (19,380) (8,230) 3,285 390 390 971 5 976 1,361 5 1,366 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest payments on obligations Acquisition of capital assets and rights Net cash provided (used) by capital and related financing activities (20) (2,952) (2,972) 41 41 (20) (2,911) (2,931) 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 $ (50) (50) 1,722 246 1,968 $ 69 69 17 2,852 2,869 $ 19 19 1,739 3,098 4,837 $ 2,008 $ (1,056) $ 952 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 Capital contributions 161 2,237 251 2,488 $ (245) 3 47 106 1 137 1 (2) 61 4,354 $ (109) (309) 13 29 (1) 34 25 (2) 61 (5) (1,069) $ (354) (309) 3 60 135 34 162 1 (4) 122 (5) 3,285 $ $ 208 - $ $ 41 619 $ $ 249 619 City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Year Ended June 30, 2024 (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 Premium on long term debit issued Amounts available for appropriation $ 65,729 44,273 82 12,698 4,749 30,000 157,531 Final $ 65,729 44,273 82 12,698 4,749 30,000 157,531 Variance with Final Budget Actual $ 66,043 42,360 82 3,935 7,901 31,545 3,867 155,733 $ 314 (1,913) (8,763) 3,152 1,545 3,867 (1,798) CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Water Sewer Administrative and general Total charges to appropriations 2,000 50,538 21,449 13,725 87,712 2,000 49,923 22,136 13,800 87,859 47,517 22,546 13,658 83,721 2,000 2,406 (410) 142 4,138 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 3,409 400 (19,190) (6,900) (68,925) (91,206) 26,949 (26,348) 3,409 400 (19,190) (6,900) (68,779) (91,060) 26,949 (26,348) 5,295 3,070 (19,190) (6,900) 44 (46,348) (64,029) 833 (305) 1,886 2,670 44 22,431 27,031 (26,116) 26,043 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 44,192 23,406 162 $ 44,192 23,405 $ 45,387 53,898 $ 1,195 30,493 City of Glendale, Arizona Budgetary Comparison Schedule Water and Sewer Fund For the Year Ended June 30, 2024 (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 Joint Venture. Long term debt issued. Premium on long term debt issued. Internal staff and administrative charges reported as revenue only on budgetary basis. Interest income. 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. 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 210,057 (45,387) 129 6,579 (11) 1,088 (31,545) (3,867) (82) (14) 30 (833) 305 136,449 156,159 129 (46,348) 539 33,759 (165) (19,190) 707 (124) (2,624) (82) 122,760 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Landfill user fees Charges for services Miscellaneous Recycling sales Amounts available for appropriation $ 13,750 442 566 1 14,759 Final $ 13,750 442 566 1 14,759 Variance with Final Budget Actual $ 15,158 431 158 36 15,783 $ 1,408 (11) (408) 35 1,024 CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Landfill Administrative and general Total charges to appropriations 500 12,160 40 12,700 500 12,161 40 12,701 12,403 4 12,407 500 (242) 36 294 NONOPERATING REVENUES (EXPENSE) Investment income Interest expense Gain/(loss) on disposal of assets Capital Outlay Total nonoperating revenues (expenses) Transfer in Transfer out 29 (432) (15,162) (15,565) 1,131 (32) 29 (432) (15,162) (15,565) 1,131 (32) 572 (432) 5 (5,930) (5,785) 1,131 (41) 543 5 9,232 9,780 (9) Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 15,133 2,726 164 $ 15,133 2,725 $ 10,411 9,092 $ (4,722) 6,367 City of Glendale, Arizona Budgetary Comparison Schedule Landfill Fund For the Year Ended June 30, 2024 (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. Internal staff and administrative charges reported as revenue only 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 expenditure. Accrued payroll expense. Landfill post-closure expense. Amortization and depreciation expense. Subscription based internet technology arrangement. Principal payments on long-term obligations. Pension expense. Aggregated capital outlay expenditures OPEB expense. Interest expense. Indirect cost allocation. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 165 Actual 27,861 (10,411) 10 (431) (1,131) 41 15,939 18,769 10 (5,930) 42 505 2,904 (72) (285) 114 (550) (20) (161) (431) 14,895 Variance with Final Budget City of Glendale, Arizona Budgetary Comparison Schedule Solid Waste Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Intergovernmental Container service Curb service Miscellaneous Amounts available for appropriation $ 354 6,557 19,107 39 26,057 Final $ 354 6,557 19,107 39 26,057 Variance with Final Budget Actual $ 6,273 19,997 26,270 $ (354) (284) 890 (39) 213 CHARGES TO APPROPRIATIONS (OUTFLOWS) Contingency Solid Waste Administrative and general Total charges to appropriations 200 22,260 104 22,564 200 22,260 104 22,564 22,021 110 22,131 200 239 (6) 433 NONOPERATING REVENUES (EXPENSE) Investment income Gain/(loss) on disposal of assets Capital Outlay Total nonoperating revenues (expenses) Transfer in 10 6 (4,300) (4,284) 390 10 6 (4,300) (4,284) 390 (50) 23 (2,671) (2,698) 390 (60) 17 1,629 1,586 - Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 1,117 716 $ 1,117 716 $ 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. 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 expenditure. Accrued payroll expense. Amortization and depreciation expense. Subscription based internet technology arrangement. Pension expense. Aggregated capital outlay expenditures OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 166 3,129 4,960 29,762 (3,129) 49 (390) 26,292 24,802 49 (2,671) 63 2,237 (208) 193 (98) (36) 24,331 $ 2,012 4,244 City of Glendale, Arizona Budgetary Comparison Schedule Housing Fund For the Year Ended June 30, 2024 (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 - $ 16,882 5 913 17,800 $ 16,882 5 913 17,800 574 574 574 574 18,563 18,563 (17,989) (17,989) (430) (430) 1,004 (430) (430) 1,004 69 69 619 971 69 430 499 619 (33) - $ $ - $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Amortization and depreciation expense. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 167 7,887 8,783 27,346 (7,887) (971) 18,488 18,563 251 53 (11) 18,856 $ 7,887 8,783 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 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, 2024 (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 $ 22,589 Workers' Compensation $ 29,255 Employee Benefits $ Fleet Services 35,814 $ 694 Total NonMajor Internal Service Funds Technology $ 17,371 $ 105,723 44 22,633 29,255 61 35,875 15 55 764 17,371 61 15 99 105,898 9 150 8 1,425 - 93 138 1,575 248 616 (246) 370 379 23,012 158 29,413 1,425 37,300 745 (659) 86 179 943 20,681 (10,153) 10,528 10,666 28,037 22,042 (11,058) 10,984 12,807 118,705 53 53 13 13 - 877 877 695 695 1,638 1,638 44 6 7,341 8 119 7,518 38 57 14,864 14,959 2,268 41 5,869 8,178 482 262 56 800 1,150 520 36 1,517 3,223 3,982 886 28,074 44 1,692 34,678 3 80 252 335 7,853 80 55 135 15,094 40 40 8,218 306 3,018 3,324 4,124 479 952 1,003 2,434 5,657 908 4,105 1,255 6,268 40,946 4 4 (33) (33) - 690 690 76 76 737 737 369 - - 258 10,528 11,155 9 14,830 15,208 8 14,357 14,365 29,082 29,082 93 (3,345) (2,994) $ 138 12,333 22,999 248 67,257 78,660 $ 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, 2024 (amounts expressed in thousands) Risk Management OPERATING REVENUES Self insurance premium Charges for services Miscellaneous Other fees Total operating revenues $ 12,903 1,313 14,216 Workers' Compensation $ 12,798 18 12,816 Employee Benefits $ 45,912 24 45,936 Fleet Services $ 13,167 14 13,181 Total Internal Service Funds Technology $ 24,753 12 24,765 $ 71,613 37,920 1,369 12 110,914 OPERATING EXPENSES Administrative and general Insurance claims and premiums Amortization and depreciation Total operating expenses Operating income (loss) 4,759 2,848 123 7,730 6,486 1,240 2,558 3,798 9,018 565 30,200 30,765 15,171 13,478 86 13,564 (383) 16,962 3,327 20,289 4,476 37,004 35,606 3,536 76,146 34,768 NONOPERATING REVENUES (EXPENSES) Investment income Interest expense Total nonoperating revenues (expenses) 1,453 (8) 1,445 1,873 1,873 1,933 1,933 (2) (2) 551 (56) 495 5,810 (66) 5,744 7,931 10,891 17,104 (385) 4,971 40,512 7,931 7,277 15,208 10,891 3,474 14,365 17,104 11,978 29,082 325 (60) (2,934) (2,994) 4,971 18,028 22,999 325 40,837 37,823 78,660 Net income (loss) before transfers Transfer in Change in net position Total net position - beginning Total net position - ending $ $ 173 $ $ $ $ City of Glendale, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2024 (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 $ $ 14,216 (5) (4,467) (2,592) (363) 6,789 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Transfers out Net cash provided (used) by noncapital financing activities 12,816 (11) (816) (2,937) (427) 8,625 Employee Benefits $ Fleet Services 45,933 23 (363) (31,872) 13,721 $ 13,200 (681) (8,990) (3,575) (46) Technology $ Total 24,765 (4,017) (6,054) (5,828) 8,866 $ 110,930 (4,691) (20,690) (37,401) (10,193) 37,955 - - - 325 325 - 325 325 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets and rights (116) Interest payments on obligations (13) Net cash provided (used) by capital and related financing activities (129) - - (84) (2) (86) (5,776) (79) (5,855) (5,976) (94) (6,070) $ 1,933 1,933 15,654 20,160 35,814 $ 193 501 694 $ 551 551 3,562 13,809 17,371 $ 5,810 5,810 38,020 67,703 105,723 $ 15,171 $ (383) $ 4,476 $ 34,768 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 $ 1,453 1,453 8,113 14,476 22,589 $ 1,873 1,873 10,498 18,757 29,255 $ 6,486 $ 9,018 123 - - 86 3,327 3,536 $ 1 4 1 (36) 16 (62) 256 6,789 $ 3 6 (45) 22 (379) 8,625 $ 21 120 81 (1,672) 13,721 $ 7 12 2 20 46 1 28 58 77 (46) $ 1 35 82 6 730 209 8,866 $ 28 12 3 59 138 8 (8) 879 327 (1,795) 37,955 $ 116 $ - $ - $ 82 $ 2,161 $ 2,359 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, 2024 (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 12,903 12,903 $ $ Variance with Final Budget Actual 12,903 12,903 $ 12,903 1,313 14,216 $ 1,313 1,313 1,000 5,121 7,782 13,903 1,000 5,121 7,782 13,903 4,979 2,592 7,571 1,000 142 5,190 6,332 - - 1,453 1,453 1,453 1,453 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 11,334 10,334 $ 11,334 10,334 $ 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 estimated claims payable and prepaids. Insurance and claims recorded GAAP basis only. Accrued payroll expense. Amortization and depreciation expense. Subscription based internet technology arrangement. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 175 14,448 22,546 30,117 (14,448) 15,669 7,571 (37) 256 (62) 123 (119) 7 (1) 7,738 $ 3,114 12,212 City of Glendale, Arizona Budgetary Comparison Schedule Workers' Compensation Fund For the Year Ended June 30, 2024 (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 11,705 11,705 $ $ Variance with Final Budget Actual 11,705 11,705 $ 12,798 18 12,816 $ 1,093 18 1,111 1,000 1,847 9,883 12,730 1,000 1,847 9,883 12,730 1,210 2,938 4,148 1,000 637 6,945 8,582 26 26 26 26 1,873 1,873 1,847 1,847 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 16,740 15,741 $ 16,740 15,741 $ 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. Insurance and claims recorded GAAP basis only. Accrued payroll expense. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 176 18,826 29,367 33,515 (18,826) 14,689 4,148 (379) 21 10 (2) 3,798 $ 2,086 13,626 City of Glendale, Arizona Budgetary Comparison Schedule Employee Benefits For the Year Ended June 30, 2024 (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 36,587 36,587 $ $ Variance with Final Budget Actual 36,587 36,587 $ 45,912 24 45,936 $ 9,325 24 9,349 533 36,054 36,587 677 36,054 36,731 483 31,871 32,354 194 4,183 4,377 - - 1,933 1,933 1,933 1,933 NONOPERATING REVENUES (EXPENSE) Investment income Total nonoperating revenues (expenses) Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 11,118 11,118 $ 11,118 10,974 $ 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. Insurance and claims recorded GAAP basis only. Accrued payroll expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 177 19,519 35,034 67,388 (19,519) 47,869 32,354 (1,672) 83 30,765 $ 8,401 24,060 City of Glendale, Arizona Budgetary Comparison Schedule Fleet Services Fund For the Year Ended June 30, 2024 (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) TRANSFERS Transfer in TOTAL TRANSFERS Budgetary fund balance, July 1 Budgetary fund balances, June 30 Final 14,554 475 15,029 $ Variance with Final Budget Actual 14,554 475 15,029 $ 13,167 14 13,181 $ (1,387) (461) (1,848) 14,779 14,779 15,365 15,365 13,415 13,415 1,950 1,950 (250) (250) - (1) (1) (1) (1) - - 325 325 325 325 5 (331) $ 156 246 5 5 $ $ Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenses Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule. Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. Less: Transfers in. Total revenues as reported in the combining statement of revenues, expenses, and changes in fund net position. $ Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule. Accrued payroll expense. Capital outlay expenditure. Amortization and depreciation expense. Subscription based internet technology arrangement. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 178 13,662 (156) (325) 13,181 13,416 77 (1) 86 (82) 85 (15) 13,566 $ 151 577 City of Glendale, Arizona Budgetary Comparison Schedule Technology Fund For the Year Ended June 30, 2024 (amounts expressed in thousands) Budgeted Amounts Original RESOURCES (INFLOWS): Charges for services Other fees Amounts available for appropriation $ 24,749 24,749 Final $ Variance with Final Budget Actual 24,749 24,749 $ 24,753 12 24,765 $ 4 12 16 CHARGES TO APPROPRIATIONS (OUTFLOWS) Administrative and general Total charges to appropriations 28,440 28,440 30,543 30,543 22,048 22,048 8,495 8,495 NONOPERATING REVENUES (EXPENSE) Investment income Capital Outlay Total nonoperating revenues (expenses) (2,102) (2,102) - 551 (485) 66 551 (485) 66 Budgetary fund balance, July 1 Budgetary fund balances, June 30 $ 12,367 6,574 $ 12,367 6,573 $ 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 estimated claims payable and prepaids. Accrued payroll expense. Capital outlay expenditure. Amortization and depreciation expense. Other non-capital expenditure. Subscription based internet technology arrangement. Pension expense. OPEB expense. Total expenses as reported in the combining statement of revenues, expenses, and changes in fund net position. $ 179 13,418 16,201 38,734 (13,418) 25,316 22,533 (1,122) 208 (485) 3,327 (934) (3,307) 149 (24) 20,345 $ 1,051 9,628 City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 $ 1,637,117 55,272 1,692,389 Resident Opportunity and Supportive Services $ 1,005,554 88,986 1,094,540 $ EHV Emergency Housing Voucher - $ Eliminations - $ Total - $ 2,642,671 88,986 55,272 2,786,929 97,961 6,330 5,409 (541) 1,768 (1,768) 109,159 108,626 230,456 2,005 6,057 (6,057) 341,087 54,517 54,517 200 200 - 108,626 382,934 8,535 11,466 (6,598) 1,768 (1,768) 504,963 15,171 (759) 170,722 1,986,682 1,435,627 54,517 200 - 15,171 (759) 170,722 3,477,026 183 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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, & mortgages receivable - non-current - past due Grants receivable - non-current Other assets Investment in joint venture Total non-current assets Total assets Deferred outflow of resources Total assets and deferred outflow of resources 311 312 313 321 322 324 325 331 332 333 341 342 343 344 345 346 347 348 310 LIABILITIES AND EQUITY-NET ASSETS/POSITION: LIABILITIES Current liabilities: Bank Overdraft Accounts payable <=90 days Accounts payable >90 days past due Accrued wage/payroll taxes payable Accrued compensated absences - current portion Accrued contingency liability Accrued interest payable Accounts payable - HUD PHA Programs Accounts payable - PHA projects Accounts payable - other government Tenant security deposits Unearned revenues Total current portion of L/T debt - capital projects/mortgage revenue Current portion of L/T debt - operating borrowings Other current liabilities Accrued liabilities - other Inter program - due to Loan liability - current Total current liabilities Housing Choice Vouchers Project Total 135,533 11,441,159 620,331 203,309 2,402,337 (11,996,867) 1,926,384 4,732,186 22,269 4,754,455 6,741,137 111,264 $ 6,852,401 $ $ 30,321 10,686 55,272 5,617 101,896 184 Resident Opportunity and Supportive Services $ 149,998 102,908 (206,845) 46,061 33,345 79,406 1,515,033 166,609 1,681,642 $ 54,517 54,517 12,544 12,669 25,213 54,517 54,517 $ EHV Emergency Housing Voucher $ $ 2,077 2,077 2,277 10,377 12,654 18,635 2,724 21,359 Eliminations $ $ Total - 135,533 11,591,157 620,331 306,217 2,402,337 (12,203,712) 1,926,384 4,778,247 57,691 4,835,938 8,312,964 288,250 $ 8,601,214 - $ 116,017 26,079 55,272 5,617 202,985 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 $ Project Total Housing Choice Vouchers Resident Opportunity and Supportive Services 96,173 756,849 853,022 954,918 58,353 88,986 114,021 1,133,312 1,336,319 1,361,532 87,381 54,517 - 24,520 70,587 95,107 116,466 5,442 - 88,986 234,714 1,960,748 2,284,448 2,487,433 151,176 4,732,186 1,106,944 5,839,130 6,852,401 232,729 232,729 1,681,642 54,517 (109,254) (109,254) 12,654 $ - 4,732,186 1,230,419 5,962,605 8,601,214 $ $ EHV Emergency Housing Voucher $ Eliminations Total $ (continued) 185 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 $ $ 541,744 19,561 561,305 776,343 618,930 34,542 247 1,991,367 186 Resident Opportunity and Supportive Services $ $ 14,822,818 34,320 1,546 350,277 15,208,961 $ $ 58,966 58,966 EHV Emergency Housing Voucher $ $ 1,223,435 1,223,435 Eliminations $ $ Total - $ 541,744 19,561 561,305 16,881,562 618,930 68,862 1,546 350,524 $ 18,482,729 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 Asset 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 $ $ 221,201 110,029 18,977 228 140,527 490,962 100,254 18,411 2,285 52,858 173,808 322,074 182,234 187,414 91,504 783,226 Resident Opportunity and Supportive Services $ $ 812,777 309,118 25,607 1,500 179,561 1,328,563 920 2,460 3,380 $ $ 54,517 4,449 58,966 - EHV Emergency Housing Voucher $ $ 98,507 88,578 21,040 208,125 63,000 63,000 - Eliminations $ $ Total - $ $ 1,132,485 507,725 44,584 1,728 341,128 2,027,650 54,517 67,449 121,966 100,254 18,411 2,285 52,858 173,808 322,074 183,154 189,874 91,504 786,606 (continued) 187 City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 $ $ 81,701 24,283 105,984 2,596 2,596 1,556,576 434,791 10,894 247,418 1,814,888 188 Resident Opportunity and Supportive Services $ $ 54,467 16,189 70,656 5,205 5,205 1,407,804 13,801,157 13,906,554 334,852 3,489 15,652,699 $ $ 58,966 58,966 EHV Emergency Housing Voucher $ $ 271,125 952,310 1,053,203 1,324,328 Eliminations $ $ Total - $ 81,701 54,467 40,472 176,640 5,205 2,596 7,801 3,294,471 15,188,258 10,894 14,959,757 334,852 250,907 $ 18,850,881 (continued) City of Glendale, Arizona Federal Financial Data Schedule (PHA: AZ003) For the Fiscal Year Ended June 30, 2024 (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 $ $ $ 583,077 583,077 759,556 $ 5,079,574 1,452 1,445 1,745,803 609,728 6,352 2,850 - $ 189 Resident Opportunity and Supportive Services $ EHV Emergency Housing Voucher - $ 365,645 365,645 (78,093) $ - $ 310,822 200,746 12,513 12,513 - - $ $ $ Eliminations Total - $ 21,983 21,983 (78,910) $ - $ - $ (30,344) 802 802 - - $ $ 970,705 970,705 602,553 5,360,052 200,746 14,767 14,760 1,745,803 609,728 6,352 2,850 - City of Glendale, Arizona ANNUAL COMPREHENSIVE FINANCIAL REPORT STATISTICAL SECTION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 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 2024 Government activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position $ 649,466 399,683 (48,162) 2023 $ 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) 1,000,987 806,303 649,087 509,428 441,855 Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position 489,894 46,632 26,622 485,518 47,567 2,912 439,039 45,051 30,022 397,187 37,992 39,451 362,679 33,896 32,618 563,148 535,997 514,112 474,630 429,193 Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position 1,139,360 446,315 (21,540) 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) 1,342,300 $ 1,163,199 $ 1,564,135 $ 194 $ 984,058 $ 871,048 2019 $ $ 416,078 184,654 (215,449) 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) 385,283 390,525 350,463 379,923 384,862 313,704 32,943 53,699 280,920 27,550 78,272 267,111 22,897 83,920 256,488 21,576 96,300 253,134 24,090 92,357 400,346 386,742 373,928 374,364 369,581 729,782 217,597 (161,750) 732,746 212,946 (168,425) 739,090 180,148 (194,847) 712,489 185,168 (143,370) 710,031 192,804 (148,392) 785,629 $ 777,267 $ 724,391 $ 754,287 $ 754,443 195 City of Glendale, Arizona Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) Schedule 2 2024 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 $ $ $ 63,881 179,653 48,135 50,461 60,332 22,894 425,356 118,709 14,101 22,046 18,511 173,367 598,723 21,659 6,169 4,759 4,168 1,404 76,570 43,369 158,098 2023 $ $ $ 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 $ $ $ 196 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 $ $ $ 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 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 119,778 15,209 26,939 913 16,922 7,198 186,959 345,057 111,703 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 Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense (267,258) 13,592 (253,666) (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) $ 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 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 Changes in net position Governmental activities Business-type activities Total primary government $ $ $ 28,756 286,269 35,704 $ $ 28,170 279,831 36,901 $ $ 26,885 249,451 35,086 $ $ 26,473 205,325 29,941 $ $ 25,718 180,842 25,910 $ $ 25,877 171,821 24,849 $ $ 25,519 162,299 23,627 $ $ 24,955 155,779 22,024 $ $ 24,531 150,201 21,482 $ $ 23,881 147,175 20,695 66,814 12,944 32,088 2,346 (2,979) 461,942 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 3,701 6,879 2,979 13,559 475,501 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) 226,290 194,684 27,151 221,835 $ $ $ 157,216 21,885 179,101 $ $ $ 139,659 39,482 179,141 $ $ $ 197 67,573 45,437 113,010 $ $ $ 56,572 28,847 85,419 $ $ $ (5,242) 13,604 8,362 $ $ $ 40,062 12,814 52,876 $ $ $ (29,460) (436) (29,896) $ $ $ (4,939) 4,782 (157) $ $ $ 44,861 (34,499) 10,362 City of Glendale, Arizona Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Schedule 3 2024 General fund Nonspendable Restricted Committed Assigned Unassigned Total general fund All other governmental funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds $ 2023 2022 2021 2020 1,563 21,785 178,404 86,386 $ 288,138 $ 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 $ $ $ $ $ $ 7,078 372,649 2,350 3,358 (8,942) $ 376,493 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 $ 146,264 198 2019 5,621 5,374 34,322 49,648 94,965 $ 6,171 107,088 1,734 569 (502) $ 115,060 $ $ 2018 2,933 5,604 5,685 43,523 57,745 $ 6,020 119,994 1,571 737 $ 128,322 $ $ 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 $ $ $ 216 10,313 1,114 8,563 26,033 46,239 5,768 99,970 1,945 $ 107,683 199 City of Glendale, Arizona Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) Schedule 4 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 $ 315,269 37,962 184,942 983 18,219 2,474 30,292 3,755 $ 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 5,662 593,896 561,728 481,862 406,712 376,149 331,489 315,542 306,503 299,567 297,013 General government Public safety Public works Community services Community environment Street maintenance Miscellaneous Capital outlay Debt service: Principal Interest 49,256 175,992 33,837 45,770 49,485 61,996 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 20,949 110,932 27,263 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 Total expenditures Excess of revenues over (under) expenditures 554,531 458,582 645,786 354,456 360,853 357,303 328,395 332,637 338,852 292,478 39,365 103,146 (163,924) 52,256 15,296 (25,814) (12,853) (26,134) (39,285) 4,535 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Other financing sources (uses) Long-term debt issued Refunding debt issued Premium on long-term debt issued Proceeds from bond defeasance Proceeds from equipment disposal Proceeds from land sale Leases Lease proceeds Subscription-based IT arrangements 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) 106,760 128,705 24,019 (2,917) 487 481 383 555 (140,180) 113,067 (116,371) 402 - 284,175 32,225 5,316 602 1,938 364 - 13,700 2,277 366 6,500 - 295 9,693 - 15,385 1,983 238 3,125 - 91,940 15,686 2,910 - 19,330 2,391 - 27,285 33,830 4,948 329 6,615 209,255 35,751 2,650 - 80,135 (82,447) (31,996) 58,860 (62,306) 54,047 (55,384) 50,009 (51,335) 56,739 (58,060) 15,240 (77,139) 61,927 (63,287) 48,450 (49,714) 7,353 (30,470) 84,460 (85,263) (131,966) (110,145) (1,022) 240,694 (201,496) 114,989 (1,910) 289,178 21,506 8,662 19,410 47,277 20,457 49,087 43,721 Net change in fund balances $ 154,354 $ 101,236 $ 125,254 Debt service as a percentage of noncapital expenditures 28.06% 17.03% 11.16% $ 73,762 18.88% $ 23,958 26.42% $ (6,404) 20.85% $ 34,424 20.18% $ (5,677) 26.28% $ 9,802 $ 23.61% 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 48,256 25.82% 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 2014-15 Real Estate $ Improvements Personal 3 Utilities Rails and Wires Less: Tax Exempt Property Net Assessed Value 1 Total Direct Tax Rate 379,087 $ 1,451,325 $ 40,191 $ 55,687 $ 518,191 $ 1,408,099 2.15 2015-16 403,055 1,546,186 40,431 59,918 529,361 1,520,229 2016-17 499,308 1,635,370 37,350 60,892 579,745 2017-18 535,252 1,771,647 49,605 60,918 2018-19 565,975 1,924,149 48,588 2019-20 645,653 2,100,805 2020-21 722,615 2021-22 Estimated Actual Value 1 12,452,875 15.469% 2.20 13,046,428 15.708 1,653,175 2.14 13,617,839 16.397 596,446 1,820,976 2.07 19,526,518 12.380 59,594 590,661 2,007,645 1.98 21,072,143 12.331 47,258 60,722 673,484 2,180,954 1.86 23,159,054 12.325 2,271,767 55,014 64,004 718,396 2,395,004 1.80 25,276,448 12.317 781,897 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 2023-24 1,301,958 4,064,657 55,165 71,972 987,305 4,506,447 1.56 46,087,707 11.920 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 $ Assessed Value as a Percentage of Actual Value 2 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 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 2023-24 0.35 1.21 1.56 18.36 14.60 14.83 Source: Maricopa County 2023 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, 2024 (amounts expressed in thousands) Schedule 7 Tax Year 2024 Taxpayer Yam Westgate LLC 303 Glendale VF Owner LLC Sarival Development LLC JLLX West Phoenix Distribution Center BDPF Park 303 LLC Hart Cotton Lane Industrial LLC The Cubes at Glendale Building B LLC 303-NP Venture LLC RRB Beverage Operations Inc Arrowhead Towne Center LLC Arizona Public Service Company New Westgate LLC VHS of Arrowhead Inc Wal-Mart Stores, Inc. Centurylink (Qwest Corporation) American Furniture Warehouse JQH-Glendale Az Development LLC Thunderbird School of Global Management Stadium Development LLC Total principal taxpayers Rank 1 2 3 4 5 6 7 8 9 10 Percentage of Total City Taxable Assessed Value 0.73 % 0.66 0.53 0.49 0.49 0.48 0.45 0.43 0.41 0.39 Assessed Valuation $ 32,717 29,832 23,876 22,275 22,155 21,634 20,308 19,262 18,524 17,713 $ Tax Year 2015 228,296 5.06 % Assessed Valuation Rank 5 1 2 3 4 6 7 8 9 10 Percentage of Total City Taxable Assessed Value $ 8,685 17,801 12,883 11,861 9,030 6,493 5,733 5,365 4,852 4,823 0.62 1.26 0.91 0.84 0.64 0.46 0.41 0.38 0.35 0.34 % $ 87,526 6.21 % 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. Information obtained through Maricopa County Treasurers Office. 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 2014-15 Total Tax Levy(1) $ 24,429 Amount $ Total Collections to Date Collections in Subsequent Years(2) Percent of Levy 23,729 98.11 % $ Amount 229 $ Percent of Levy 23,958 98.07 % 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 98.34 158 25,679 98.94 2019-20 25,831 25,300 97.94 385 25,685 99.43 2020-21 26,619 26,039 97.82 295 26,334 98.93 2021-22 27,126 26,639 98.20 291 26,930 99.28 2022-23 28,365 27,825 98.10 157 27,982 98.65 2023-24 29,246 28,474 97.36 - 28,474 97.36 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 2024 2023 2022 2021 2020 Retail sales Contracting Rentals Utilities Telecom/cable TV Restaurant/bar Amusement Other $ 141,451 39,805 34,614 11,113 2,364 33,797 7,765 15,370 $ 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 $ 286,279 $ 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 Total 17.9 % (1.4)% 23.8 8.5 9.2 14.2 4.3 (39.5) 3.4 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 2.3 % 12.2 % 21.5 % 13.6 % 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 $ 88,804 5,559 17,394 8,775 3,523 20,070 3,615 7,347 $ 155,087 1.1 % 20.2 7.1 2.5 (1.1) 2.1 36.1 16.7 4.8 % 15.6 4.9 2.7 (17.0) 6.9 (13.4) (16.5) 4.2 % 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 2016 3.0 % $ 2015 84,710 4,810 16,581 8,544 4,244 18,767 4,176 8,802 $ 150,634 7.1 % (25.5) 2.7 (1.5) (11.1) 6.3 (26.4) 31.6 3.8 % $ 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 % 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) 2014-15 $ 133,168 Street and Highway Revenue Bonds(4)(5) $ 1,912 Excise Tax Revenue Bonds (4)(5) Transportation Bonds (4)(5) Certificates of Participation (4) Developer Payable Obligations Subscription Based IT Arrangements $ $ $ $ $ 477,747 91,047 - 3,406 - Notes Payable Leases $ 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 - 2023-24 145,424 - 331,735 47,450 239,735 5,860 11,109 325 - 208 Fiscal Year Landfill G.O. Bonds (4)(5) 2014-15 $ - Business Activities Water Sewer Revenue Bonds (4)(5) $ 260,967 Subscription Total Based IT Primary Arrangements Government (5) Total Debt per Capita(3)(6) $ $ - $ 968,304 Percentage of Personal Income(2)(6) 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 2023-24 9,917 183,678 1,199 976,432 3,859 6.14 (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. 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) 2014-15 $ $ 126,305 Schedule 11 Total Secondary Assessed Property Value Limited Property Value Percentage of Net Assessed Value of Property(5) Per Capita(2) 8,270 $ 118,035 $ 1,406,062 N/A 10.43% $ 507.29 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) 1,565 105,615 N/A 1,880,898 (8) 5.62 (4) 408.96 (8) 2023-24 144,305 (7) (8,047) 152,352 N/A 2,106,043 (8) 7.23 (4) 603.00 (8) (9) 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) Amount outstanding less 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 uses population figure provided by the City of Glendale's Economic Development Department. (9) Amounts available in debt service funds adjusted. 210 City of Glendale, Arizona Net Direct and Overlapping Governmental Activities Debt June 30, 2024 (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 24.2687 % Glendale Elementary School District No. 40 46,630 99.2968 46,302 Deer Valley Unified School District No. 97 176,750 17.1279 30,274 Alhambra Elementary School District No. 68 35,970 18.5103 6,658 Glendale Union High School District No. 205 163,965 25.4372 41,708 - 4.0072 - Maricopa County Community College District 135,585 4.0072 5,433 Phoenix Union High School District No. 210 280,510 1.4533 4,077 Pendergast Elementary School District No. 92 56,075 24.3155 13,635 Tolleson Union High School District No. 214 214,300 7.4823 16,035 Washington Elementary School District No. 6 110,475 3.1768 3,510 Dysart Unified School District No. 89 69,425 2.8652 1,989 Agua Fria Union High School District No. 216 107,525 7.8140 8,402 Litchfield Elementary School District No. 79 30,250 11.6751 3,532 Cartwright Elementary School District No. 83 56,320 - - Maricopa County $ 37,147 Total Overlapping Debt 1,636,845 218,702 City of Glendale Debt(1) 781,639 781,639 Total $ 2,418,484 $ 1,000,341 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 2024 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 2015 Debt limit Total net debt applicable to limit $ Legal debt margin $ Total net debt applicable to the limit as a percentage of debt limit 67,877 2016(2) $ (165) 68,042 70,496 2017(1)(2) $ 10,580 $ -0.24% 59,916 73,633 2018(1)(2) $ 10,580 $ 15.01% 63,053 78,417 $ 84,795 7,978 $ 14.37% 70,439 2020(1)(2) $ 8,802 $ 75,993 10.17% 88,697 2021(1)(2) $ 143,700 9,039 $ 10.38% 79,658 $ 2022(1)(2) $ 8,514 $ 135,186 10.19% 157,243 2023(1)(2) $ 19,450 $ 5.92% 137,793 207,357 $ 12.37% 190,435 2015 Debt limit Total net debt applicable to limit $ 226,257 Legal debt margin $ 108,057 2016(2) $ 118,200 52.24% 234,986 2017(1)(2) $ 120,039 $ 114,947 51.08% 245,444 2018(1)(2) $ 105,763 $ 139,681 43.09% 261,389 2019(1)(2) $ 282,651 107,257 $ 154,132 2020(1)(2) $ 106,065 $ 176,586 41.03% 37.53% 295,656 $ 479,001 89,861 $ 205,795 383,417 30.39% 19.95% Notes: Debt applicable to limit: General obligation bonds net of July 1 payment made prior to June 30. Assessed value for FY 2015-FY2020, based on limited assessed value, starting in FY 2021, based on full cash value. (1) Beginning in FY 2017, the assessed value is from Maricopa County Assessor's Office February State Abstract report. (2) In FY 2020, adjusted debt applicable to limit by moving the General Obligation Bonds 2016B from 20% to 6%. 212 $ 8.16% 2022(1)(2) $ 524,143 116,240 $ 407,903 22.18% 691,189 593,642 14.11% 4,506,447 901,289 137,325 (8) 137,317 763,972 2024(1)(2) $ 97,547 $ 252,159 6.74% 2023(1)(2) $ 270,387 18,228 $ 95,584 $ $ $ 2021(1)(2) 4,506,447 270,387 18,229 (1) 18,228 252,159 2024(1)(2) 16,922 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 20% Type Bonds Total net debt applicable to the limit as a percentage of debt limit 2019(1)(2) $ 901,289 137,317 $ 763,972 15.24% 213 City of Glendale, Arizona Pledged-Revenue Coverage Last Ten Fiscal Years (amounts expressed in thousands) Utility Service Charges(1) Fiscal Year 2014-15 Schedule 14 $ 79,325 Less: Operating Expenses(2) $ 41,712 Water and Sewer Revenue Bonds Net Available Debt Service Revenue Principal Interest $ 37,613 $ 13,170 $ Coverage 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 2023-24 128,749 84,717 44,032 19,190 6,900 1.69 214 Transportation Bonds Transportation Sales Tax Fiscal Year 2014-15 $ 24,690 Debt Service Principal Interest $ 3,545 $ Excise Tax Revenue Bonds (4) Excise Tax Revenue(3) Coverage 3,597 3.46 $ 151,963 Debt Service Principal Interest $ 2,585 $ Coverage 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 2023-24 48,902 4,530 2,169 7.30 293,802 203,455 13,160 1.36 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) 2014-15 233 2015-16 227 4,153 2016-17 238 2017-18 240 2018-19 Schedule 15 Maricopa County Population(6) (5) 4,064 Personal Income (1) Per Capita Personal Income(1)(4) $ $ 175,437,829 Unemployment Rate (5) % 43,169 5.6 185,111,698 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 4,586 (3) 288,842,282 (3) 62,983 (3) 4.1 (8) 2023-24 253 4,586 (3) 288,842,282 (3) 62,983 (3) 3.6 (8) 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 2024 Employer Luke Air Force Base Westgate Arrowhead Towne Center Banner Thunderbird Medical Center City of Glendale Walmart Maricopa County Community College Glendale Elementary School District Deer Valley School District Peoria Unified School District Glendale Union High School District AAA Total Employees 9,180 3,000 2,770 2,720 1,847 1,810 1,640 1,270 1,240 1,150 Rank 1 2 2 4 5 6 7 7 9 10 26,627 2015 Percentage of Total City Employment 6.72 % 2.20 2.03 1.99 1.35 1.32 1.20 0.93 0.91 0.84 19.49 % Employees 5,100 2,650 3,000 1,610 2,175 1,948 1,400 1,594 3 2 7 4 6 9 8 2.30 2.61 1.40 1.89 1.69 1.22 1.39 1,974 1,067 5 10 1.72 0.93 22,518 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 Percentage of Total City Employment 4.44 % 19.59 % 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 2024 33 62 11 32 68 65 557 294 100 74 37 170 36 101 207 1,847 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 Schedule 17 Full-Time Equivalent Employees as of June 30 2021 (1) 2020 2019 2018 31 62 12 25 70 69 549 287 65 55 36 164 32 80 189 1,726 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 2017 29 55 14 22 71 68 530 282 54 73 35 183 24 59 186 1,685 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 2016 28 53 13 22 67 68 522 262 55 66 34 184 18 57 184 1,633 2015 24 56 11 22 69 66 517 259 57 58 31 180 19 56 185 1,610 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 Other services (6) 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 2019 2024 2023 2022 2021 2020 2018 2017 2016 2015 171,673 9,645 43,005 173,395 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 33,278 1,994 4,450 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 64,531 13,474 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 60,048 6,060 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 63,391 37,422 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 45,693 123,557 113,950 90,721 83,452 90,953 89,614 86,187 75,561 78,977 74,217 10,454 10,183 9,764 8,844 7,171 6,217 5,804 6,234 5,488 5,449 469,796 435,343 517,174 504,461 499,106 494,325 498,092 514,197 568,653 528,835 48,246 42,508 38,270 43,670 47,273 66,174 69,934 71,912 74,256 77,318 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. (6) Breakout other services in Fire calls 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 2024 2023 2022 2021 Fiscal Year 2020 2019 2018 2017 2016 2015 3 217 9 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 68 68 62 62 62 60 60 60 60 59 97.1 67 1,006 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 29.2 728 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 24,431 23,509 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 19,687 770 757 757 748 748 748 748 748 718 718 110 2,189 110 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 22 22 20 21 21 21 22 22 20 22 Source: Various city departments Note: Landfill capacity in thousands 220 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2024 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" 12.60 16.30 23.30 44.30 79.50 136.00 235.00 466.00 913.00 1,378.00 1,829.00 16.38 21.19 30.29 57.59 103.35 176.80 305.50 605.80 1,186.90 1,791.40 2,377.70 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 $ 3.17 3.97 5.55 7.41 All Year Inside Outside City City $ 4.13 5.17 7.22 9.64 $ 3.30 3.30 3.30 3.30 $ 4.29 4.29 4.29 4.29 Summer Excess Rate Inside Outside City City $ 4.22 4.22 4.22 4.22 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 39.11 62.82 98.58 733.87 89.84 48.46 2,451.80 76.89 135.69 N/A (1) Per 1,000 gallons SOURCE: City of Glendale Finance 221 $ 5.49 5.49 5.49 5.49 City of Glendale, Arizona Miscellaneous Water and Sewer Rate Statistics June 30, 2024 Schedule 21 HISTORICAL AVERAGE NUMBER OF WATER CONNECTIONS(1) Fiscal Year Ending June 30 2015 (2) 2016 (2) 2017 (2) 2018 2019 2020 2021 2022 2023 2024 Residential 54,126 54,266 54,448 54,686 54,881 55,161 55,646 56,807 57,416 57,737 Multi-Family 1,800 1,800 1,799 1,790 1,790 1,790 1,789 1,789 1,789 1,789 Commercial 4,379 4,492 4,632 4,390 4,425 4,450 4,514 4,593 4,657 4,718 Sprinkler 1,862 1,885 1,910 1,863 1,955 1,974 2,025 2,076 2,133 2,179 Total 62,167 62,443 62,789 62,729 63,051 63,375 63,974 65,265 65,995 66,423 (1) In comparison to the number of billed accounts, total connections includes inactive "vacant" properties. (2) As of October following the fiscal year ended. Source: City of Glendale Water Services Department WATER DELIVERIES Acre Feet Calendar Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Residential (1) 26,946 26,595 27,193 27,150 27,303 26,251 27,867 26,149 26,291 25,641 Commercial 8,176 8,704 8,748 8,834 9,257 8,793 8,954 8,965 8,837 8,881 (1) Residential includes both Single and Multi-family deliveries. (2) Other include unbilled water and recovered effluent groundwater. Source: Annual report to Arizona Department of Water Resources 222 Other (2) 2,467 2,092 2,743 2,365 1,891 1,691 2,913 2,835 1,423 835 Sprinkler 2,411 2,327 2,581 2,564 2,536 2,405 2,436 2,237 2,142 2,121 Total 40,000 39,718 41,265 40,913 40,987 39,140 42,170 40,186 38,693 37,478 SEWERAGE CONNECTIONS BILLED AND SEWAGE TREATED Fiscal Year Ending June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 No. of Connections 57,588 57,758 57,953 58,155 58,454 58,764 59,305 60,532 61,201 61,633 91st Ave WWTP (2) (MGD) Actual 6.9 7.5 7.4 6.7 7.0 6.6 9.0 7.4 7.6 7.8 Arrowhead WRF (MGD) 2.7 2.7 2.7 2.6 2.7 2.6 2.6 2.7 2.6 2.6 West Area WRF (MGD) 7.2 6.9 7.2 7.2 7.0 8.0 4.8 7.1 6.2 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 16.8 17.1 17.3 16.5 16.7 17.2 16.4 17.2 16.4 16.6 City of Glendale Finance Division 5850 West Glendale Avenue, Suite 302 Glendale, Arizona 85301 (623) 930-2480