Comprehensive Annual Financial Report FOR THE FISCAL YEAR ENDED JUNE 30, 2018 City of Goodyear, Arizona Finance Department CITY OF GOODYEAR COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2018 Table of Contents I. INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement City of Goodyear Officials Organizational Chart II. Page 1 7 8 9 FINANCIAL SECTION Independent Auditor’s Report 11 A. Management’s Discussion & Analysis B. Basic Financial Statements 15 27 Government-wide Financial Statements Statement of Net Position Statement of Activities 31 32 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 43 Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses and Changes in Fund Net Position Statement of Cash Flows 44 46 48 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position 51 52 36 39 40 Notes to the Financial Statements 1. Summary of Significant Accounting Policies 2. Cash and Investments 3. Receivables 4. Capital Assets 5. Loan Payable 6. General Obligation Bonds Payable 7. Revenue Bonds Payable 8. Community Facilities Districts Bonds Payable 9. Changes in Long-term Liabilities 10. Interfund Receivables, Payables, and Transfers 11. Contingent Liabilities 12. Risk Management 13. Pensions and Other Postemployment Benefits 14. Excess of Expenditures Over Appropriations 15. Fund Balance Classifications 16. Commitments 17. Tax Abatement Agreements Page 55 63 66 67 68 69 70 72 74 75 75 76 76 88 89 90 90 C. Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund BalanceBudget to Actual General Fund Pension Schedules OPEB Schedules Notes to Required Supplementary Information 94 95 99 104 D. Other Supplementary Information Non-Major Governmental Funds – Financial Statements Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 108 110 Internal Service Funds – Financial Statements Combining Statement of Net Position Combining Statement of Revenues, Expenses and Changes in Net Position Combining Statement of Cash Flows 114 115 116 Fiduciary Funds – Financial Statements Combining Statement of Assets and Liabilities – Agency Funds Combining Statement of Changes in Assets and Liabilities-Agency Funds 118 120 Budgetary Comparison Schedules – Other Major Governmental Funds McDowell Road Commercial Corridor Improvement District-Debt Service Community Facilities Districts – Debt Service 123 124 III. Budgetary Comparison Schedules – Non-Major Governmental Funds Impound Fund Highway User Revenue Fund Park and Ride Marquee Court Enhancement JCEF Fill The Gap Officer Safety Equipment Community Facilities Districts - General Grants Ball Park Debt Service Non-Utility Development Impact Fees GO Bonds Capital Projects Capital Improvement Projects Page 126 127 128 129 130 131 132 133 134 135 136 137 138 139 Budgetary Comparison Schedules – Enterprise Funds Water & Wastewater Enterprise Fund Sanitation Enterprise Fund 140 141 STATISTICAL SECTION Net Position by Component Changes in Net Position Governmental Activities Tax Revenues by Source Excise Tax Collections Sales & Use Taxes Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Property Tax Rates Principal Property Taxpayers Assessed Value and Estimated Actual Value of Taxable Property Property Tax Levies and Collections Utility Statistical Data Ten Largest Water Users Utility Statistical Data Ten Largest Wastewater Users Schedule of Existing and Adopted Monthly Water & Wastewater Service Charges Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers Full-Time Equivalent City Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function Table Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 144 146 153 154 156 158 160 164 169 170 172 173 175 176 176 180 181 182 184 185 186 187 188 192 City of Goodyear Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018 INTRODUCTORY SECTION INTRODUCTORY SECTION The Introductory Section includes the City’s Transmittal Letter, the Certificate of Achievement for Excellence in Financial Reporting, List of Principal Officials, and the City’s Organizational Chart. City of Goodyear Finance Department November 30, 2018 Honorable Mayor, City Council, City Manager, and Citizens of the City of Goodyear, Arizona: State law requires that cities annually publish after the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) to the City of Goodyear, Arizona (City) for the fiscal year ended June 30, 2018. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free from any material misstatements. This document represents management’s report to its governing body, constituents, legislative and oversight bodies, investors and creditors. Copies of this report will be made available to elected officials, management personnel, bond rating agencies, Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (EMMA), and other agencies which have expressed interest in the City’s financial matters. Copies of this financial report will be placed on the City’s website for use by the general public. The accounting firm of Heinfeld, Meech & Co., P.C., Certified Public Accountants, an independent public accounting firm, performed the City’s annual financial statement audit. The auditors have issued an unmodified (“clean”) opinion of the City of Goodyear’s financial statements for the fiscal year ended June 30, 2018. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report on pages 15-26 and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. CITY OF GOODYEAR PROFILE The City of Goodyear, incorporated in 1946 and chartered in 1988, started as a small town cultivating cotton for the production of rubber tires during World War I. Over the years, Goodyear has sustained continued growth and currently encompasses approximately 191 square miles in the western portion of Maricopa County and is approximately 17 miles west of the downtown Phoenix business district. The City’s growth is attributable to excellent housing, a small-town atmosphere, convenient access to the central valley, and outstanding school districts. The population of the City is 83,512. Goodyear has a Council/Manager form of government consisting of the Mayor and six council members. The Mayor and council members are elected at-large to four-year terms. The City Council is vested with policy and legislative authority and is responsible for passing ordinances, adopting the budget, appointing committee, commission, and board members, and appointing the positions of City Manager, City Attorney, and City Judge. The City Manager is responsible for carrying out the policies and ordinances of the City Council, as well as overseeing the day-to-day operations of the City. 190 N. Litchfield Road, Goodyear, AZ 85338 P 623-882-7886 Page 1 F 623-932-3003 goodyearaz.gov In fiscal year 2018 a staff of 572 full-time authorized employees working within 15 different departments performed the various functions of Goodyear’s City government and its operation. The City provides a full range of municipal services, including police and fire protection, sanitation services, water and wastewater services, construction and maintenance of streets, recreational programs, parks and cultural events, public transportation, planning and zoning services, and general administrative services. Goodyear offers a wide range of community facilities including the Goodyear Ballpark, library, community center, swimming pool, and 17 parks encompassing 204 acres. The City is community-driven and includes hundreds of volunteers that serve in various areas and, through their efforts, saved the City more than $803,163 in fiscal year 2018 alone. In addition, Goodyear continues to attract major employers with its availability of land, access to the central valley, and available commercial space. FINANCIAL CONTROLS Internal Controls The management of the City of Goodyear is responsible for establishing and maintaining a system of internal controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from unauthorized use or disposition, and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits requires estimates and judgments by management. The system of internal control is subject to periodic evaluation by management and is also considered by the independent auditors in connection with the annual audit of the City’s financial statements. All internal control evaluations occur within the above framework. The City’s internal accounting controls are considered to adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Controls The City of Goodyear, like all cities in the State of Arizona, is subject to numerous budget and related legal requirements. Article IX, Section 20 (1) of the Arizona Constitution sets limits on the City’s legal budget capacity. At a general election held on March 11, 2003, citizens of Goodyear approved a permanent adjustment of the 1979 expenditure base for population and inflation growth. The City may utilize the additional expenditure authority for any local budgetary purposes. The permanent adjustment eliminates the need for voter approval of Home Rule every four years. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Mayor and Council. Activities of the general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds, and internal service fund are included in the annual appropriated budget. The legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is the total budget, as adopted by the City Council. All funds of the City have legally adopted budgets. The initial budget for the fiscal year may be amended during the year in a legally permissible manner. The City adopts the budget by major program area for the General Fund and by fund for all others. The City Manager is generally authorized to transfer budgeted amounts within any specific department’s expenditure appropriation. Any budget revisions requiring a transfer between major program areas in the General Fund or a transfer between funds must be approved by the City Council. In addition to maintaining budgetary control via a formal appropriation, the City maintains an encumbrance accounting system. Encumbrances are made against appropriations upon the issuance of a purchase order. Encumbered appropriations lapse at fiscal year-end and are re-encumbered as needed in the next fiscal year. Page 2 LOCAL ECONOMIC CONDITION AND OUTLOOK During fiscal year 2018 there were 1,292 new single-family resident permits issued which represents an increase of 224 permits from the prior fiscal year. Fiscal year 2018 is the third consecutive year since the end of the recession that single-family resident permits were over 1,000. Goodyear’s sales tax revenues remain strong and continue to increase year over year. The City continues to budget conservatively and monitors the changes taking place in the local, regional, and national economies in order to be ready to adapt to any changes and to position ourselves for future growth. Sales Tax Goodyear, like all Arizona cities, places significant reliance on city sales tax revenues. City sales tax revenues for fiscal year 2018 increased by 11.4% over fiscal year 2017 levels. State Shared Revenues The City receives revenue allocations from the State. These state shared revenues include allocations of the state-collected income tax, sales tax, fuel tax, and motor vehicle in-lieu taxes. A significant portion of this revenue is placed in the City’s general fund where it is used to support day-to-day activities. The City’s state shared revenues represented over 20% of the general fund revenue for fiscal year 2018. Property Tax In fiscal year 2018, the City’s combined (primary and secondary) property tax rate dropped slightly to $1.7349 per $100 of assessed valuation. Although the tax rate remained the same, assessed values increased resulting in a property tax levy increase of $1,044,643. The stabilization in the tax rate ensured the City’s ability to service currently outstanding debt and maintain basic infrastructure. For the fiscal year 2019 budget, the Mayor and Council have adopted a total combined property tax rate of $1.735 per $100 of assessed valuation, which is the nearly the same as fiscal year 2018. In accordance with its budget policies, the City has now achieved the targeted combined property tax rate of $1.74 per $100 of assessed valuation or less to sell new general obligation bonds. LONG-TERM FINANCIAL PLANNING In 2013, the Council began a process of redefining the long-term strategic priorities of the City and adopted the first City Strategic Action Plan since 2002. This strategic plan is discussed yearly with City Council to review progress and determine priorities for the annual plan update. Any new funding requests are evaluated in the context of their relationship to the strategic focus areas. The City of Goodyear’s mission is as follows: The City of Goodyear will provide the finest municipal services and promote a quality environment to enhance our community’s prosperity through citizen and employee participation. We are committed to the stewardship of resources and fulfillment of the public trust. Four focus priorities are identified within the Strategic Action Plan: 1. Fiscal and Resource Management: Maintaining a long-term view, we manage our fiscal, human, and physical resources in an efficient and effective manner. This effort is aligned across the organization with an emphasis on transparency. The City’s business practices will be efficient, business friendly, and ensure exceptional customer service to all stakeholders and citizens. Page 3 2. Economic Vitality: We will continue to ensure the prosperity of our community by increasing the growth of our economy through diversity of industry, business investment, quality job creation, education, and tourism. To support this growing economy, we will invest in transportation and infrastructure and seek high quality retail and entertainment opportunities. 3. Sense of Community: The City will cultivate a sense of pride through programs, gathering places, and events where the community can come together to participate in opportunities of learning and recreation. We will continue to make Goodyear residents feel connected to their City government through community engagement, outstanding customer service, and clear, accessible communication. 4. Quality of Life: We will continue to make Goodyear a place to live, work, and play that provides diverse activities and amenities in a safe and well-maintained environment, while supporting the arts and promoting the health and wellness of our community. The Strategic Action Plan establishes a road map of key strategic initiatives that best advance the vision for the City and is aligned with many other planning documents used by the City, including departmental plans (which include specific strategic plans, master plans, and operational plans) which guide department priorities and individual employee performance evaluation goals. For each of these four focus priorities, long-range goals have been identified and assigned to various departments for follow-up. These priorities are also a key fundamental factor in the development of the City’s annual budget. Within each of the four focus areas, Goodyear City Council has adopted Guiding Principles to inform the way City business is carried out across the entire organization. MAJOR INITIATIVES Goodyear is an award-winning community that provides a high quality of life with its master-planned communities, excellent schools and health care, trail systems and entertainment options, including major league sports venues.  Goodyear was ranked by 24/7 Wall St. as one of America’s Top 10 Best Cities to Live (#7).  Goodyear was ranked by the U.S. Census Bureau as being among the fastest growing cities in the country.  A NerdWallet study ranked Goodyear as one of the best cities in the nation for veterans, based on the level of economic opportunity for veterans. During fiscal year 2018, the City began the design of a 30-acre park to include a recreation center and aquatics facility. These facilities are to begin construction in FY2019 using G.O. Bonds and impact fees. Additional recreation services and facilities were started in FY2018. A third summer recreation program, expanded library hours and replacement of park equipment and right of way landscaping were just a few of the projects funded in FY2018. In an effort to support the growth in housing with jobs and an economic base, a one-time $2.0 million allocation was made to implement an impact fee reduction program. This program is targeted to attract certain industries into the City and will continue into FY2019. In addition, the City funded temporary and ongoing increases for planning, permitting, building inspection and safety to keep up with building activity. AWARDS AND ACKNOWLEDGEMENTS Certificates of Achievement Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Goodyear, Arizona, for its comprehensive annual financial report for the fiscal year ended June 30, 2017. The City has achieved this prestigious award every year since 2007. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. Page 4 A Certificate of Achievement is valid for one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning July 1, 2017. The City has received the highest form of recognition in governmental budgeting each year since 1994. Acknowledgement The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the dedicated commitment of every member of the Finance Department. We also wish to thank the Mayor and members of the City Council, the City’s Audit Committee, and the City Manager’s Office for their continued support in planning and conducting the financial affairs of the city in a responsible and progressive manner. Sincerely, Doug Sandstrom Finance Director Page 5 Page 6 Page 7 LIST OF PRINCIPAL OFFICIALS MAYOR Georgia Lord VICE MAYOR Wally Campbell COUNCIL MEMBERS Laura Kaino Joe Pizzillo Sheri Lauritano William Stipp Brannon Hampton SENIOR MANAGEMENT STAFF Julie Arendall City Manager Michael Simonson Presiding Judge Roric Massey City Attorney Dan Cotterman Deputy City Manager Wynette Reed Deputy City Manager Darcie McCracken City Clerk Lyman Locket Human Resources Director Paul Luizzi Fire Chief Doug Sandstrom Finance Director Gerald Geier Police Chief Christopher Baker Development Services Director Alan Claypool Information Technology Director Rebecca Zook Engineering Director Nathan Torres Park & Recreation Director Harold Stewart Acting Economic Development Director Javier Setovich Public Works Director Jeanine L’Ecuyer Acting Communications Manager Page 8 Organizational Chart (15) Departments Citizens Mayor & Council Municipal Judge City Manager Municipal Court Deputy City Manager City Attorney Legal Services City Manager's Office Deputy City Manager Development Services Communications City Clerk Engineering Economic Development Finance Fire Human Resources Parks & Recreation Information & Technology Services Police Public Works Page 9 Page 10 City of Goodyear Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018 FINANCIAL SECTION The Financial Section includes the Independent Auditor’s Report, Management's Discussion and Analysis, the Audited Financial Statements, Notes to the Audited Financial Statements, Required Supplementary Information, and Other Supplementary Information. FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of the City Council City of Goodyear, Arizona Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Goodyear, Arizona (City) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Goodyear, Arizona, as of June 30, 2018, 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. Change in Accounting Principle As described in Note 1, the City implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, and Statement No. 86, Certain Debt Extinguishment Issues, for the year ended June 30, 2018, which represent changes in accounting principles. Our opinion is not modified with respect to this matter. Page 11 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, net pension liability information, and other postemployment benefit plan information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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 auditing standards generally accepted in the United States of America, 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. Other 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 Introductory Section, Other Supplementary Information, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Other Supplementary 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. Such 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 auditing standards generally accepted in the United States of America. In our opinion, the Other Supplementary Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2018, on our consideration of City of Goodyear, Arizona’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 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 City of Goodyear, Arizona’s internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Phoenix, Arizona November 30, 2018 Page 12 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) Page 13 Page 14 MANAGEMENT’S DISCUSSION AND ANALYSIS For The Year Ended June 30, 2018 As management of the City of Goodyear, Arizona (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2018. This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any material deviations from the financial plan (the approved annual budget), and (5) identify individual fund issues or concerns. The management’s discussion and analysis (MD&A) has different focus and purpose than the letter of transmittal and is designed to be read in conjunction with the transmittal letter as well as the financial statements and the accompanying notes to the financial statements. FINANCIAL HIGHLIGHTS  The City’s government-wide assets and deferred outflows exceeded its liabilities and deferred inflows by $735,758,693 (net position) at the close of fiscal year 2018. Of this amount, $54,348,401 represents unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors.  The $30.3 million increase in net position of the City is the result of an increase in sales tax revenues as well as charges for water and wastewater services.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $131.4 million, an increase of $21.6 million (20 percent) in comparison with the prior year fund balance of $109.8 million. Approximately 46 percent of this amount ($60.5 million) is available for spending at the government’s discretion (unassigned fund balance).  At June 30, 2018, total unassigned fund balance for the general fund is $60.5 million, an increase of $7.2 million (13 percent) from the prior fiscal year. OVERVIEW OF 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 comprise of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business. All of the activities of the City, except those of a fiduciary nature, are included in these statements. The activities of the City are shown in two columns on these statements – governmental activities and business-type activities. A total column for the City is also provided. The Statement of Net Position presents information on all of the City’s assets, deferred outflow of resources, liabilities, and deferred inflow of resources, with the net of all categories being reported as the City’s net position. 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. Page 15 The Statement of Activities presents information demonstrating how the City’s net position changed during the most recent fiscal year as compared with the previous 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 the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). The net revenue (expenses) show the financial burden that was placed on the City’s taxpayers by each of these functions. Providing this information allows our citizens to consider the cost of each function in comparison to the benefits that are provided by that function.  Governmental activities – Most of the City’s basic services are included here, such as general government (administration), public safety (police, fire and court), highways and streets, public works, culture and recreation, and development services. These activities are generally supported by taxes and general revenues.  Business-type activities – The services provided by the City included here are water, wastewater, and sanitation services. These activities are primarily supported through user charges or fees. The government-wide financial statements include not only the City itself (known as the primary government), but also the operations of 10 Community Facilities Districts. Although legally separate from the City, these component units are blended with the primary government because of their governance and financial relationship to the City. Separate financial statements may be obtained at the City of Goodyear’s Finance Department, 190 North Litchfield Road, Goodyear, Arizona 85338. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary 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 focus on near-term inflows 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 the City’s near-term financing requirements. Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 10 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 General Fund, McDowell Road Commercial Corridor Improvement District – Debt Service, and Community Facilities Districts – Debt Service, all of which are considered to be major funds. Data from the other seven 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. Page 16 Proprietary Funds. The City maintains four proprietary funds. Proprietary funds (enterprise and internal service) utilize full accrual accounting, the same method used by private sector business. The City uses separate enterprise funds to account for its water and wastewater services, and sanitation services. These funds are considered to be major funds of the City. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City has two internal service funds, Fleet Management and the Self-Insurance Trust. The Fleet Management Fund reports activities that provide preventative maintenance, repairs and safety inspections for City vehicles and equipment. The Self-Insurance Trust Fund reports activities related to self-insurance for employee health benefits. The internal service fund activities are reported as governmental activities on the government-wide statements. Fiduciary Funds. The City maintains five fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting method used for fiduciary funds is similar to the accounting method used for proprietary funds. Notes to the Financial Statements. The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budget to actual comparison and progress in funding its obligation to provide pension and OPEB benefits to its employees. The combining statements referred to earlier in connection with non-major governmental funds is presented immediately following the notes to the required supplementary information on pensions. Budget to actual comparison schedules for the enterprise funds are presented in the other supplementary information section. Page 17 GOVERNMENT-WIDE FINANCIAL ANALYSIS The following tables, graphs and analysis discuss the financial position and changes to the financial position of the City as a whole as of the year ended June 30, 2018 with comparative information for the previous year. Net Position The following table was derived from the current and prior year Statement of Net Position: Current and other assets Capital assets, net Total assets Governmental Activities 2018 2017 $ 218,766,500 $ 194,978,728 644,680,645 652,711,039 863,447,145 847,689,767 Business-type Activities Total Primary Government 2018 2017 2018 2017 $ 52,987,723 $ 52,691,519 $ 271,754,223 $ 247,670,247 298,998,510 287,651,808 943,679,155 940,362,847 351,986,233 340,343,327 1,215,433,378 1,188,033,094 Deferred outflows 24,947,271 28,547,265 2,851,579 3,419,570 27,798,850 31,966,835 Current and other liabilities Long-term liabilities Total liabilities 23,638,432 362,269,353 385,907,785 24,894,829 359,211,849 384,106,678 9,452,444 108,134,807 117,587,251 6,153,422 118,641,602 124,795,024 33,090,876 470,404,160 503,495,036 31,048,251 477,853,451 508,901,702 3,596,176 4,788,586 382,323 677,835 3,978,499 5,466,421 381,473,262 379,899,821 199,032,946 181,242,982 580,506,208 561,142,803 4,377,576 19,453,023 2,453,112 59,379,423 1,772,242 29,981,817 $ 498,890,455 4,186,816 12,428,141 1,854,445 69,904,013 2,124,090 16,944,442 $ 487,341,768 7,569,091 12,821,165 5,899,617 8,251,069 24,366,584 $ 236,868,238 15,974,822 $ 218,290,038 Deferred inflows Net position: Net investment in capital assets Restricted for: Charter mandates Capital projects Community facilities operations Debt service Other purposes Unrestricted Total net position 4,377,576 4,186,816 27,022,114 25,249,306 2,453,112 1,854,445 65,279,040 78,155,082 1,772,242 2,124,090 54,348,401 32,919,264 $ 735,758,693 $ 705,631,806 The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $735.7 million at the close of fiscal year 2018 and by $705.6 million in 2017, providing an overall increase in the City’s net position of $30.3 million. Current and other assets increased by $24.1 million. This increase is primarily due to the issuance of general obligation bonds during the fiscal year. Long-term liabilities decreased by $7.4 million as a result of a decrease in bonds payable due to scheduled bond payments. The largest portion of the City’s net position totaling $580.5 million (79 percent of total net position) reflects its net investment in capital assets (e.g., land and improvements, buildings, furniture, equipment, vehicles, artwork, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position totaling $100.9 million (14 percent of total net position) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $54.3 million (seven percent of total net position) is unrestricted and may be used to meet the City’s ongoing obligations to its citizens and creditors. Page 18 At the end of fiscal year 2018, the City reported positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. Net Position $54.3 Unrestricted $32.9 $100.9 Restricted $111.6 FY2018 FY2017 $580.5 Net investment in capital assets $561.1 $0 $100 $200 $300 $400 $500 $600 In Millions Governmental Activities During the current fiscal year, the net position for governmental activities increased $11.5 million from the prior fiscal year for an ending balance of $498.9 million. The City’s sales tax revenue increased $6.7 million due to an overall improvement in the economy. Operating grants and contributions increased by $5.6 million as a result of the revenues in the Goodyear Community Facilities Utilities District No. 1 that were eligible for recognition in association with the defeasance of debt in the fiscal year. Business-type Activities The City business-type activities reported an increase of $18.6 million in net position bringing the total net position to $236.9 million. Charges for services revenue increased by $4.1 million due to an increase in water and wastewater rates as well as an increase in the usage of those services. Page 19 Changes in Net Position The following table compares the revenues and expenses for the current and previous fiscal year: Governmental Activities 2018 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Sales taxes Property taxes Franchise taxes State shared revenue Investment earnings Miscellaneous Total revenues Expenses: General government Public safety Highways and streets Public works Culture and recreation Development services Interest on long-term debt Water and wastewater Solid waste Total expenses Changes in net position before Transfers Transfers Special item Changes in net position Net position, beginning Net effect of prior period adjustments Net position, beginning restated Net position, ending Page 20 2017 Business-type Activities 2018 2017 $ 17,448,370 $ 16,164,698 7,442,815 15,896,063 $ 43,015,750 $ 38,936,643 10,546,333 110,718 12,246,216 12,237,823 13,317,172 58,831,503 20,649,103 3,181,840 19,967,694 1,196,857 341,814 145,224,694 52,082,570 19,875,628 2,941,175 20,019,457 560,547 886,502 135,054,491 23,781,937 45,439,446 26,460,464 4,232,567 19,080,188 6,591,111 11,582,014 20,151,975 47,535,184 19,181,162 3,569,658 15,363,752 7,316,935 12,131,284 137,167,727 125,249,950 47,246 37,024 55,337,843 26,853,794 6,206,843 33,060,637 Total Primary Government 2018 $ 2017 60,464,120 16,164,698 19,680,638 $ 54,832,706 10,657,051 25,563,388 123,100 31,081 52,518,714 58,831,503 20,649,103 3,181,840 19,967,694 1,244,103 378,838 200,562,537 52,082,570 19,875,628 2,941,175 20,019,457 683,647 917,583 187,573,205 30,139,626 5,868,228 36,007,854 23,781,937 45,439,446 26,460,464 4,232,567 19,080,188 6,591,111 11,582,014 26,853,794 6,206,843 170,228,364 20,151,975 47,535,184 19,181,162 3,569,658 15,363,752 7,316,935 12,131,284 30,139,626 5,868,228 161,257,804 8,056,967 9,804,541 22,277,206 16,510,860 30,334,173 26,315,401 3,700,000 2,800,000 (3,700,000) (2,800,000) (36,893) (36,893) 11,720,074 12,604,541 18,577,206 13,710,860 30,297,280 26,315,401 487,341,768 473,164,033 218,290,038 206,152,372 705,631,806 679,316,405 (171,387) 1,573,194 994 (1,573,194) (170,393) 487,170,381 474,737,227 218,291,032 204,579,178 705,461,413 679,316,405 $ 498,890,455 $ 487,341,768 $ 236,868,238 $ 218,290,038 $ 735,758,693 $ 705,631,806 The pie chart below is a depiction of government-wide revenue sources. Governmental activities accounts for 72 percent of total revenues, while business activities account for 28 percent of total revenues. Charges for services are the largest source of City revenue at 30 percent, a 10 percent increase from the previous fiscal year due to increased water and wastewater rates and an increase in the usage of those services. The second largest source of City revenue are sales taxes at 29 percent of total revenue, which increased 13 percent over the previous fiscal year due to an increase in taxable sales as a result of an improved economy. Page 21 The reported expenses for fiscal year 2018 increased by $9.0 million (six percent) over the prior year. As seen in the following pie chart for government-wide functional expenses, governmental activities account for 81 percent of total functional expenses, while business-type activities account for 19 percent of total functional expenses. The line items that experienced notable changes were:    Page 22 Highways and streets expenses account for 16 percent of the total government-wide expenses, an increase of $7.3 million (38 percent) from the prior year. The increase is primarily due to expenses for street maintenance. Public safety expenses account for 27 percent of the total government-wide expenses, a decrease of $2.1 million (four percent) from the prior year. The decrease is primarily due to adjustments related to pensions. Culture and recreation expenses account for 11 percent of the total government-wide expenses, an increase of $3.7 (24 percent) from the prior year. This increase is attributed to landscaping improvements at the ballpark and other parks throughout the City. FINANCIAL ANALYSIS OF THE CITY’S FUNDS The City maintains fund accounting to demonstrate compliance with budgetary and legal requirements. The following is a brief discussion of financial highlights from the fund financial statements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. All major governmental funds are discreetly presented on these financial statements, while non-major funds are combined into a single column. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $131.4 million, an increase of 20 percent from the previous year. The increase in fund balance is due to the issuance of general obligation bonds. Revenues increased by $18.6 million and expenditures increased by $28.9 million. Approximately 46 percent of the fund balance ($60.5 million) constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either non-spendable, restricted, committed or assigned to indicate that it is 1) not in spendable form ($2.4 million), 2) restricted for particular purposes ($55.5 million), 3) committed for particular purposes ($2.0 million) or 4) assigned for particular purposes ($11.0 million). Revenues for governmental functions overall totaled $147.5 million in the fiscal year ended June 30, 2018, which represents an increase of $18.6 million (14 percent) from the prior fiscal year. The most significant reason for this change is due to an increase in sales tax revenues. The expenditures for governmental functions totaled $157.8 million, an increase of $28.9 million (22 percent) from the prior year. The majority of this increase is attributed to capital outlay and debt service. Capital outlays accounted for $30.4 million in expenditures for the current fiscal year, an increase of $12.7 million from the prior fiscal year. Debt service expenditures accounted for $40.0 million in expenditures for the current fiscal year, an increase of $12.4 million from prior fiscal year. The increase was a result of an increase in principal payments due to regularly scheduled debt payments as well as the early defeasance of debt in the Goodyear Community Facilities Utilities District No. 1. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $60.5 million, while total fund balance increased to $131.4 million. As a measure of the general funds solvency, it may be useful to compare both unassigned fund balance and total fund balance to general fund expenditures. The unassigned fund balance represents approximately 66 percent of general fund expenditures, while total fund balance represents approximately 86 percent of general fund expenditures. The fund balance of the City’s general fund increased by $9.2 million in the current fiscal year due primarily to growth in sales tax revenue. The fund balance of the McDowell road commercial corridor ID debt service fund remained consistent with the prior fiscal year. The fund balance of the community facilities debt service fund decreased by $7.7 from the prior fiscal year as a result of debt service payments. Page 23 Proprietary Funds The proprietary fund financial statements are prepared on the same accounting basis and measurement focus as the government-wide financial statements, but provide additional detail since each major enterprise fund is shown discretely. The proprietary funds net position totals $236.9 million, resulting from an increase of $18.6 million from the previous fiscal year. The water and wastewater fund had an increase in net position of $17.8 million, which is due to an increase in charges for services as a result of an increase in rates as well as usage. The sanitation fund had an increase in net position of $728,365 which is similar to the increase in the prior year. BUDGETARY HIGHLIGHTS The City’s annual budget is the legally adopted expenditure control document of the City. The schedules filed with the Auditor General’s office list the original budget adopted for the prior year, estimated expenditures through the end of the fiscal year and the adopted current year’s budget. Budgetary comparison schedules are required for the General Fund, all major funds, non-major funds and enterprise funds. The General Fund budgetary comparison schedule can be found in the Required Supplementary Information section. The other budgetary comparison schedules can be found in the Other Supplementary Information section. There were no significant changes to the original adopted budget. During the fiscal year there were two General Fund categories that came in significantly below estimates as shown below: Budgeted Expenditures $ 26,740,200 17,977,300 Capital Outlay Transfers out Actual Expenditures $ 14,493,302 9,686,180 $ Difference 12,246,898 8,291,120 General Fund actual inflows (revenues and other financing sources) of $111.1 million, was more than budgeted inflows of $96.6 million due to construction sales tax and development related revenues, while expenditures and other financing uses of $101.8 million was only 66 percent of final budgeted outflows of $153.7 million as a result of unspent capital outlay, budgeted transfers out that were not necessary and $17.8 million in budgeted contingency that remained untouched throughout the fiscal year. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets (net of accumulated depreciation) for its governmental and business-type activities as of June 30, 2018 amounts to $943.7 million. Capital assets include land and improvements, artwork, construction in progress, right of way, water rights, streetscape, infrastructure, buildings and improvements and vehicles, furniture and equipment. In total, there was a slight increase of $3.3 million from the prior year. Governmental Activities Land and improvements Artwork Construction in progress Right of way Water rights Streetscape Infrastructure Building and improvements Vehicles, furniture and equipment Total Page 24 $ 2018 31,983,773 $ 256,115 9,107,572 90,844,947 2017 35,562,466 $ 247,016 24,578,294 90,826,343 Business-type Activities 2018 7,570,661 $ 146,978 12,015,646 Total Primary Government 2017 4,108,251 $ 146,978 7,913,766 18,009,011 17,717,219 9,061,008 9,061,008 272,454,225 266,477,177 164,220,712 163,761,199 213,228,438 209,193,265 90,828,593 87,962,898 17,744,567 16,765,469 6,206,909 6,041,497 $ 644,680,645 $ 652,711,038 $ 298,998,510 $ 287,651,808 2018 2017 39,554,434 $ 39,670,717 403,093 393,994 21,123,218 32,492,060 90,844,947 90,826,343 18,009,011 17,717,219 9,061,008 9,061,008 436,674,937 430,238,376 304,057,031 297,156,163 23,951,476 22,806,966 $ 943,679,155 $ 940,362,846 The change in governmental capital assets is due to an increase in accumulated depreciation which was offset by capital improvements to the ballpark. The change in business-type capital assets is the result of the increase in accumulated depreciation being offset by various water related projects including improvements to Site No. 12. Additional information on the City’s capital assets can be found in Note 4. Debt Administration At the end of the current fiscal year, the City had total long-term debt outstanding of $375.1 million. Of this amount $97.1 million is general obligation bonds backed by the full faith and credit of the City, $90.2 million is Community Facilities Districts bonds which are paid by the property owners within those districts, $184.5 million of revenue bonds which are payable from user fees, assessments, and general fund revenues and $3.3 million loan payable to Water Infrastructure Finance Authority of Arizona (WIFA) which is payable from user fees. The following schedule shows the outstanding debt obligation as of June 30, 2018 and 2017: Governmental Activities General obligation bonds Community facilities districts bonds Loan payable Revenue bonds Total 2018 2017 $ 41,990,387 $ 20,471,357 90,160,000 98,797,000 144,712,865 151,473,467 $276,863,252 $270,741,824 Business-type Activities Total Primary Government 2018 2017 2018 2017 $ 55,074,633 $ 63,298,663 $ 97,065,020 $ 83,770,020 90,160,000 98,797,000 3,323,972 3,591,773 3,323,972 3,591,773 39,830,000 41,240,000 184,542,865 192,713,467 $ 98,228,605 $108,130,436 $375,091,857 $378,872,260 The State constitution limits the amount of general obligation debt a city may issue to six percent of its total assessed valuation. The current six percent debt limitation for the City is $57.9 million. In addition, the State constitution limit allows a city to issue an additional 20 percent of its total assessed valuation for water, wastewater, lights, transportation, public safety, open space preserves, parks, playgrounds and recreational facilities. The current 20 percent debt limitation for the City is $192.8 million. The City has $97.1 million of outstanding general obligation debt of which all is subject to the 20 percent limit. During the year, the City maintained the following bond ratings: Bonded Debt Ratings As of June 30, 2018 Type of Debt General Obligation Water & Sewer (Revenue) Public Improvement Corporation Improvement District Bonds Moody’s Investors Service Aa2 Aa3 Aa3 Aa3 Standard & Poor’s AA AAA AA- Additional information on the City’s long-term debt can be found in Notes 5 through 9. Page 25 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The unemployment rate for Goodyear for June 2018 was 4.2 percent, which is lower than the state rate of 4.7 percent but higher than the national rate of 4.0 percent. Arizona cities remain dependent on sales taxes and other economically sensitive tax revenues and are susceptible to slowdowns in the economy. While unemployment is not a leading economic indicator, the state of the economy will likely coincide with current unemployment rates. Total sales tax collections for fiscal year 2018 performed above anticipated budget and are exceeding fiscal year 2017 collections by 10.3 percent. For fiscal year 2018 non-construction sales taxes, which make up just over half of the on-going General Fund revenues, have performed above last year by 1.4 percent. This is reflective of ongoing steady growth in the local economy, including rising population and growing sales taxes, especially in the retail and restaurant categories. Construction sales taxes, which are planned conservatively in the budget, are performing well above budget and fiscal year 2017. Both commercial and residential building permit activity is above the prior year levels by more than 14.7 percent, which is reflected in higher than budgeted revenue collections from development related plan review, building permits and inspection fees. The fiscal year 2019 budget assumes continued moderate growth and a conservative approach. Consistent with Council adopted financial policies, the primary property tax is maximized at the allowed two-percent growth in the levy plus the tax on new properties. At 50 percent of General Fund revenues, non-construction sales tax are estimated at five percent above fiscal year 2018 levels. State shared sales, income and vehicle license taxes are more than 20 percent of the General Fund revenues and are based population estimates provided by the state. In combination, the fiscal year 2018 state-shared General Fund revenues are projected at slightly above the fiscal year 2018 budget primarily due to changes in the corporate income taxation which has lowered state income tax collections. The fiscal year 2019 all funds budget totals $447.4 million, which is an increase of $127.6 million over fiscal year 2018. This increase is primarily due to an increase of $114.8 million in capital projects. Debt service increased by $6.1 million in principal and interest payments. Included in the recommended budget are carryover projects from fiscal year 2018. Carryovers comprise of $84.3 million in capital projects and $6.9 million in operating costs. Operating costs increased by $9.5 million of which approximately onehalf is from ongoing supplemental budget additions, the balance is from salary and benefit increases. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the resources it receives. A copy of the City's Comprehensive Annual Financial Report is available online at www.goodyearaz.gov/cafr. If you have questions about this report or need additional information, contact the City of Goodyear, 190 N. Litchfield Road, by mail at P.O. Box 5100, Goodyear, Arizona 85338 or by email at gyfinance@goodyearaz.gov. Page 26 BASIC FINANCIAL STATEMENTS Page 27 Page 28 GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 29 Page 30 CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2018 ASSETS Current assets: Cash and cash equivalents Investments Receivables Due from other governments Inventories Prepaids Total current assets Governmental Activities Business-type Activities $ $ 69,896,584 63,886,365 65,928,642 1,291,127 814,853 758,946 202,576,517 5,392,465 28,139,342 6,016,779 Total $ 40,193,694 75,289,049 92,025,707 71,945,421 1,291,127 1,459,961 758,946 242,770,211 645,108 Noncurrent assets: Restricted cash and cash equivalents Non-depreciable capital assets Depreciable capital assets Net other postemployment benefit assets Total noncurrent assets Total assets 16,011,577 138,254,206 506,426,439 178,406 660,870,628 863,447,145 12,774,476 19,733,285 279,265,225 19,553 311,792,539 351,986,233 28,786,053 157,987,491 785,691,664 197,959 972,663,167 1,215,433,378 DEFERRED OUTFLOWS OF RESOURCES Loss on refunding Pension and other postemployment benefit plan items Total deferred outflows of resources 7,446,139 17,501,132 24,947,271 2,074,529 777,050 2,851,579 9,520,668 18,278,182 27,798,850 LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Claims payable Accrued interest payable Deposits Unearned revenue Compensated absences payable Bonds payable Total current liabilities 3,124,756 2,557,480 479,747 5,912,314 8,690,657 2,873,478 2,330,471 10,503,338 36,472,241 5,021,993 187,137 209,231 1,315,000 10,976,675 8,146,749 2,744,617 479,747 7,061,527 11,784,758 2,873,478 2,539,702 11,818,338 47,448,916 Noncurrent liabilities: Non-current portion of long-term obligations Total noncurrent liabilities Total liabilities 349,435,544 349,435,544 385,907,785 106,610,576 106,610,576 117,587,251 456,046,120 456,046,120 503,495,036 237,866 3,358,310 3,596,176 382,323 382,323 237,866 3,740,633 3,978,499 381,473,262 199,032,946 580,506,208 DEFERRED INFLOWS OF RESOURCES Gain on refunding Pension and other postemployment benefit plan items Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Charter mandates Capital projects Community facilities Debt service Other purposes Unrestricted Total net position $ 4,377,576 19,453,023 2,453,112 59,379,423 1,772,242 29,981,817 498,890,455 1,149,213 3,094,101 7,569,091 5,899,617 $ 24,366,584 236,868,238 The notes to the basic financial statements are an integral part of this statement. Page 31 $ 4,377,576 27,022,114 2,453,112 65,279,040 1,772,242 54,348,401 735,758,693 CITY OF GOODYEAR, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018 Functions/Programs Primary Government Governmental activities: General government Public safety Highways and streets Public works Culture and recreation Development services Interest on long-term debt Total governmental activities Business-type activities: Water and wastewater Sanitation Total business-type activities Total primary government Expenses $ $ 23,781,937 $ 45,439,446 26,460,464 4,232,567 19,080,188 6,591,111 11,582,014 137,167,727 26,853,794 6,206,843 33,060,637 170,228,364 $ Program Revenues Net (Expense) Revenue and Changes in Net Position Operating Grants Capital Grants and and Contributions Contributions Governmental Activities Charges for Services 2,592,414 $ 1,373,556 81,727 204,959 $ 854,940 8,054,223 2,984,530 10,416,143 17,448,370 35,203,483 7,812,267 43,015,750 60,464,120 $ $ 2,793,895 4,648,920 7,050,576 16,164,698 7,442,815 12,237,823 16,164,698 $ 12,237,823 19,680,638 (96,111,844) General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues Investment income Miscellaneous Transfers Special item - Loss on debt extinguishment Total general revenues, transfers and special items 58,831,503 20,649,103 3,181,840 19,967,694 1,196,857 341,814 3,700,000 (36,893) 107,831,918 Changes in net position 11,720,074 Net position, beginning of year, as restated 487,170,381 Net position, end of year The notes to the basic financial statements are an integral part of this statement. Page 32 (20,984,564) (43,210,950) (15,530,619) (4,232,567) (16,095,658) 8,473,952 (4,531,438) (96,111,844) $ 498,890,455 Net (Expense) Revenue and Changes in Net Position Business-type Activities $ Totals $ 20,587,512 1,605,424 22,192,936 22,192,936 47,246 37,024 (3,700,000) $ (20,984,564) (43,210,950) (15,530,619) (4,232,567) (16,095,658) 8,473,952 (4,531,438) (96,111,844) 20,587,512 1,605,424 22,192,936 (73,918,908) 58,831,503 20,649,103 3,181,840 19,967,694 1,244,103 378,838 (3,615,730) (36,893) 104,216,188 18,577,206 30,297,280 218,291,032 705,461,413 236,868,238 $ 735,758,693 Page 33 Page 34 FUND FINANCIAL STATEMENTS Page 35 CITY OF GOODYEAR, ARIZONA BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2018 General ASSETS Cash and cash equivalents Investments Taxes receivable Interest receivable Accounts receivable Special assessments receivable Due from other governments Due from other funds Advances to other funds Inventories Prepaids Notes receivable Restricted cash and cash equivalents Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Due to other funds Unearned revenue Bonds payable Advances from other funds Total liabilities $ Community Facilities Districts Debt Service $ $ 120,152 87,657 719,287 1,091,866 1,045,531 $ $ 758,946 1,675,250 259,822 95,696,091 2,680,601 2,401,906 14,800 7,727,805 $ 34,990,152 $ $ $ 11,219,510 30,253,007 $ 1,387,824 1,308,086 245,000 30,756 14,378,198 30,756 6,654,824 34,870,000 47,105 18,842,269 8,375 1,700,222 1,801,180 34,870,000 18,889,374 1,804,477 6,113,955 89,396 4,708,809 11,046,166 60,552,115 79,516,713 89,396 4,708,809 5,267,000 92,583 Fund balances (deficits): Nonspendable Restricted Committed Assigned Unassigned Total fund balances 95,696,091 $ 34,990,152 The notes to the basic financial statements are an integral part of this statement. Page 36 103,571 18,842,269 34,870,000 Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - special assessments Unavailable revenues - intergovernmental Unavailable revenues - other Total deferred inflows of resources Total liabilities, deferred inflows of resources and fund balances 46,917,938 33,175,430 8,420,837 125,549 1,505,635 McDowell Road Commercial Corridor ID Debt Service $ 30,253,007 Non-Major Governmental Funds Total Governmental Funds $ $ 19,928,600 30,710,935 99,166 132,016 66,692 571,840 553,663 $ $ 4,532,245 56,595,157 377,866 129,663 2,167,245 962,852 856,498 1,534,636 2,365,000 1,045,531 9,439,291 $ $ 63,377 74,560 553,663 44,586,548 1,963,850 2,358,140 55,498,708 1,963,850 11,046,166 60,529,360 131,396,224 (22,755) 47,081,306 56,595,157 Page 37 3,058,467 2,531,569 3,569,869 8,690,657 856,498 2,873,478 7,877,000 1,045,531 30,503,069 203,065 53,712,269 19,558 1,700,222 55,635,114 11,183 $ 66,966,690 63,886,365 8,607,660 257,565 1,675,898 53,712,269 1,291,127 1,091,866 1,045,531 553,663 758,946 1,675,250 16,011,577 217,534,407 $ 217,534,407 Page 38 CITY OF GOODYEAR, ARIZONA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2018 Total governmental fund balances $ 131,396,224 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Governmental capital assets Less accumulated depreciation $ 873,407,857 (228,727,212) 644,680,645 203,065 53,712,269 19,558 1,700,222 55,635,114 Some receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. Property taxes Special assessments Intergovernmental Other Interest payable on long-term debt is not due and payable in the current period and, therefore, is not reported in the funds. (2,342,444) Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions 17,501,132 (3,358,310) 14,142,822 (6,058,984) 7,446,139 (237,866) (61,349,596) (286,805,367) (347,005,674) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Compensated absences payable Loss on refunding Gain on refunding Net pension and OPEB liability/asset Bonds payable Internal Service Funds are used by management to charge the cost of certain activities to the individual funds. The assets and liabilities of the Internal Service Funds are included in the Statement of Net Position. Net position of governmental activities The notes to the basic financial statements are an integral part of this statement. Page 39 2,383,768 $ 498,890,455 CITY OF GOODYEAR, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 General Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Special assessments Contributions Miscellaneous Total revenues $ 66,635,237 10,634,433 19,967,694 3,143,399 1,044,317 861,622 McDowell Road Commercial Corridor ID Debt Service Community Facilities Districts Debt Service $ $ 2,378,647 2,404,421 107,069,770 6,136,703 1,312 3,537,643 118,085 2,431,155 3,011,437 3,538,955 11,697,380 Expenditures: Current General government Public safety Highways and streets Public works Culture and recreation Development services Capital outlay Debt service Principal retirement Interest and debt cost Bond issuance costs Payment to refunded bond escrow agent Total expenditures 1,235,603 195,150 1,660,000 1,893,807 490,945 92,300,224 4,044,752 9,996,000 6,155,562 616,739 4,622,056 21,390,357 Excess (deficiency) of revenues over expenditures 14,769,546 (505,797) (9,692,977) 36,222,010 15,315,617 19,955,558 39,378,039 2,897,716 6,985,081 7,159,767 14,493,310 Other financing sources (uses): Bond issuance Refunding bonds issued Refunding bonds premium Payment to refunded bond escrow agent Transfer in Transfer out Total other financing sources (uses) (35,731,065) (13,325,637) 4,092,668 (9,697,843) (5,605,175) 490,945 1,989,980 Changes in fund balances 9,164,371 (14,852) (7,702,997) Fund balances, beginning of year 70,352,342 104,248 12,411,806 Fund balances, end of year $ 79,516,713 $ 89,396 The notes to the basic financial statements are an integral part of this statement. Page 40 $ 4,708,809 Non-Major Governmental Funds Total Governmental Funds $ $ 9,830,507 2,235 6,805,630 7,275,140 215,838 967,918 81,251 25,178,519 870,338 400,967 5,517,174 20,825,896 39,779,006 5,517,174 2,897,716 11,315,720 7,159,767 30,366,883 4,330,639 15,873,573 6,750,970 5,980,901 374,897 40,099,459 19,642,573 14,225,420 1,482,581 4,622,056 157,834,792 (14,920,940) (10,350,168) 25,015,000 9,808,761 (503,586) 35,042,346 25,015,000 51,537,627 722,171 (49,056,702) 13,901,429 (10,201,429) 31,918,096 20,121,406 21,567,928 26,959,900 109,828,296 722,171 $ 82,602,447 10,636,668 26,773,324 10,418,539 1,044,317 1,196,857 5,968,798 6,358,002 2,485,672 147,484,624 47,081,306 Page 41 $ 131,396,224 Page 42 CITY OF GOODYEAR, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018 Changes in fund balances - total governmental funds $ 21,567,928 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Capital contributions Expenditures for capitalized assets Less current year depreciation 2,793,895 14,170,111 (21,451,541) Issuance of bonds provides current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position. (4,487,535) (74,495,171) Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Special assessments Intergovernmental Other 60,001 (2,897,576) (72,390) (471,808) Interest expense in the Statement of Activities differs from the amount reported in the governmental funds because accrued interest was calculated for bonds and notes payable for the Statement of Activities, but is expensed when due for the governmental fund statements. (3,381,773) (226,160) Repayments of long-term debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Bond principal retirement Bond principal refunded 19,642,573 53,678,758 73,321,331 7,310,369 (7,556,976) (246,607) (36,893) (3,542,859) 939,076 (75,031) (2,715,707) Governmental funds report pension contributions as expenditures. However, they are reported as deferred outflows of resources in the Statement of Net Position. The change in the net pension liability, adjusted for deferred pension items, is reported as pension expense in the Statement of Activities. Current year pension and OPEB contributions Pension expense Some expenses 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. Loss on extinguishment of debt Loss on disposal of assets Amortization of deferred bond items Compensated absences The Internal Service Funds are used by management to charge certain costs to the individual funds. The changes in net position of the Internal Service Funds is reported with governmental activities in the Statement of Activities. Changes in net position in governmental activities The notes to the basic financial statements are an integral part of this statement. Page 43 2,383,768 $ 11,720,074 CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2018 Enterprise Funds Water & Wastewater ASSETS Current assets: Cash and cash equivalents Investments Interest receivable Accounts receivable Inventories Total current assets $ Noncurrent assets: Restricted cash and cash equivalents Non-depreciable capital assets Depreciable capital assets Net other postemployment benefit assets Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Loss on refunding Pension and other postemployment benefit plan items Total deferred outflows of resources 3,254,329 27,427,267 120,922 4,992,195 645,108 36,439,821 Sanitation $ 2,138,136 712,075 2,992 900,670 Totals $ 3,753,873 5,392,465 28,139,342 123,914 5,892,865 645,108 40,193,694 12,774,476 19,733,285 278,410,277 17,180 310,935,218 347,375,039 854,948 2,373 857,321 4,611,194 12,774,476 19,733,285 279,265,225 19,553 311,792,539 351,986,233 2,074,529 682,737 2,757,266 94,313 94,313 2,074,529 777,050 2,851,579 4,581,417 165,314 440,576 21,823 5,021,993 187,137 LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Claims payable Accrued interest payable Deposits Due to other funds Compensated absences payable Bonds payable Total current liabilities 187,199 1,315,000 10,492,244 484,431 209,231 1,315,000 10,976,675 Noncurrent liabilities: Non-current portion of long-term obligations Total noncurrent liabilities Total liabilities 105,885,840 105,885,840 116,378,084 724,736 724,736 1,209,167 106,610,576 106,610,576 117,587,251 335,924 46,399 382,323 198,177,998 854,948 199,032,946 2,594,993 3,449,941 7,569,091 5,899,617 24,366,584 236,868,238 1,149,213 3,094,101 DEFERRED INFLOWS OF RESOURCES Pension and other postemployment benefit plan items NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted Total net position $ 7,569,091 5,899,617 21,771,591 233,418,297 1,149,213 3,094,101 22,032 $ The notes to the basic financial statements are an integral part of this statement. Page 44 $ Governmental Activities: Internal Service Funds $ 2,929,894 261,190 3,191,084 3,191,084 66,289 25,912 479,747 235,368 807,316 807,316 $ 2,383,768 2,383,768 Page 45 CITY OF GOODYEAR, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2018 Enterprise Funds Water & Wastewater Operating revenues: Charges for services Self insurance premiums Miscellaneous Total operating revenues $ 35,203,483 Sanitation $ 7,812,267 Totals $ 43,015,750 26,574 35,230,057 10,450 7,822,717 37,024 43,052,774 Operating expenses: Administration Claims expense Costs of sales and services Depreciation and amortization Total operating expenses 4,816,040 730,972 5,547,012 8,735,089 7,545,004 21,096,133 5,313,996 161,875 6,206,843 14,049,085 7,706,879 27,302,976 Operating income (loss) 14,133,924 1,615,874 15,749,798 Nonoperating revenues (expenses): Investment income Interest expense Loss on disposal of assets Total nonoperating revenues (expenses) 34,875 (4,034,295) (1,723,366) (5,722,786) 12,371 12,371 47,246 (4,034,295) (1,723,366) (5,710,415) Income (loss) before transfers 8,411,138 1,628,245 10,039,383 Capital contributions Transfer out 12,237,823 (2,800,000) (900,000) 12,237,823 (3,700,000) Changes in net position 17,848,961 728,245 18,577,206 Total net position, beginning of year, as restated 215,569,336 2,721,696 218,291,032 Total net position, end of year $ 233,418,297 $ 3,449,941 The notes to the basic financial statements are an integral part of this statement. Page 46 $ 236,868,238 Governmental Activities: Internal Service Funds $ 1,942,720 8,751,282 674,332 11,368,334 672,540 6,428,728 1,897,004 8,998,272 2,370,062 13,706 13,706 2,383,768 2,383,768 $ 2,383,768 Page 47 CITY OF GOODYEAR, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2018 Water & Wastewater Sanitation Totals Increase/Decrease in Cash and Cash Equivalents Cash flows from operating activities: Cash received from customers Cash received from contributions Cash payments to suppliers for goods and services Cash payments to employees Cash payments for claims $ Net cash provided by/used for operating activities Cash flows from investing activities: Purchase of investments Investment income Net cash provided by/used for investing activities Cash flows from noncapital financing activities: Due from (to) other funds Transfers in (out) Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Principal paid on long-term debt Interest and fiscal fees Intergovernmental revenue Build America Bond interest subsidy Acquisition of capital assets Development impact fees received 35,848,910 $ 7,759,816 43,608,726 (5,286,441) (4,832,089) (5,255,309) (741,143) (10,541,750) (5,573,232) 25,730,380 1,763,364 27,493,744 (7,489,152) (30,915) (487,979) 9,999 (7,977,131) (20,916) (7,520,067) (477,980) (7,998,047) (2,800,000) (900,000) (3,700,000) (2,800,000) (900,000) (3,700,000) (9,901,831) (4,626,580) 290,000 111,075 (17,638,190) 9,273,318 Net cash provided by capital and related financing activities $ (9,901,831) (4,626,580) 290,000 111,075 (17,812,442) 9,273,318 (174,252) (22,492,208) (174,252) (22,666,460) Net increase/decrease in cash and cash equivalents (7,081,895) 211,132 (6,870,763) Cash and cash equivalents, beginning of year 23,110,700 1,927,004 25,037,704 Cash and cash equivalents, end of year $ 16,028,805 $ 2,138,136 $ 18,166,941 1,615,874 $ 15,749,798 Reconciliation of Operating Income/Loss to Net Cash Provided by/Used for Operating Activities Operating income/loss $ Adjustments to reconcile operating income/loss to net cash used for operating activities: Depreciation and amortization Increase/decrease in accounts receivable Increase/decrease in inventories Increase/decrease in accounts payable Increase/decrease in accrued payroll and benefits Increase/decrease in deposits held for others Increase/decrease in claims payable Increase/decrease in compensated absences payable Increase/decrease in pension and OPEB expense Total adjustments Net cash provided by/used for operating activities Noncash investing, capital and financing activities: Contributions of capital assets Amortization of bond premiums and discounts Amortization of deferred loss on refunding Page 48 14,133,924 $ 7,545,004 618,853 51,927 3,726,665 (24,769) (329,944) 161,875 (62,901) (79,786) 88,506 (3,703) (1,788) (83,489) 86,718 11,596,456 147,490 11,743,946 $ 25,730,380 $ 2,964,505 276,649 143,455 7,706,879 555,952 51,927 3,785,352 (29,449) (329,944) 58,687 (4,680) $ 1,763,364 The notes to the basic financial statements are an integral part of this statement. $ 27,493,744 $ 2,964,505 276,649 143,455 Internal Service Funds $ 11,368,334 (2,451,720) (57,659) (5,948,981) 2,909,974 13,706 13,706 6,064 6,064 2,929,744 150 $ 2,929,894 $ 2,370,062 11,759 55,204 (6,798) 479,747 539,912 $ 2,909,974 Page 49 The notes to the basic financial statements are an integral part of this statement. Page 50 CITY OF GOODYEAR, ARIZONA STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 Agency Pension Trust ASSETS Cash and cash equivalents Investments Total assets $ 18 491,423 491,441 LIABILITIES Deposits held for others Total liabilities NET POSITION Held in trust $ $ 37,608 $ 37,608 $ $ 37,608 37,608 491,441 The notes to the basic financial statements are an integral part of this statement. Page 51 CITY OF GOODYEAR, ARIZONA STATEMENT OF CHANGES IN NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 Pension Trust Additions: Investment income Total additions $ 52,327 52,327 Deductions: Benefits Total deductions 9,024 9,024 Changes in net position 43,303 Net position, beginning of year 448,138 Net position, end of year $ 491,441 The notes to the basic financial statements are an integral part of this statement. Page 52 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. Note Page 1. Summary of Significant Accounting Policies 55 2. Cash and Investments 63 3. Receivables 66 4. Capital Assets 67 5. Loan Payable 68 6. General Obligation Bonds Payable 69 7. Revenue Bonds Payable 70 8. Community Facilities Districts Bonds Payable 72 9. Changes in Long-Term Liabilities 74 10. Interfund Receivables, Payables, and Transfers 75 11. Contingent Liabilities 75 12. Risk Management 76 13. Pensions and Other Post Employment Benefits 76 14. Excess of Expenditures Over Appropriations 89 15. Fund Balance Classifications 89 16. Commitments 90 17. Tax Abatement Agreements 90 Page 53 Page 54 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Goodyear, Arizona (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2018, the City implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement requires governments providing defined benefit postemployment benefits other than pensions to recognize the long-term obligation for those benefits as a liability, and to more comprehensively and comparably measure the annual costs of those benefits. This Statement also enhances accountability and transparency through revised note disclosures and new required supplementary information. During the year ended June 30, 2018, the City also implemented the provisions of GASB Statement No. 86, Certain Debt Extinguishment Issues. This Statement improves consistency in accounting and financial reporting for insubstance defeasance of debt. A. Reporting Entity The City is a municipal entity governed by an elected mayor and six-member governing council (council). As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its blended component units, entities for which the City is considered financially accountable. In accordance with GASB Statement No. 14, and as amended by GASB Statement No. 61, the component units discussed below have been included in the City’s reporting entity because of the significance of their operational or financial relationship with the city. The financial reporting entity consists of a primary government, and its component units. The City is a primary government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, component units are combined with the City for financial statement presentation purposes, and are not included in any other governmental reporting entity. Consequently, the City’s financial statements include the funds of those organizational entities for which its elected governing body is financially accountable. Blended Component Units - Community Facilities Districts were formed for the purpose of acquiring and improving public infrastructure in specified land areas. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the City. Property owners in the designated areas are assessed for District taxes and thus for the cost of operating the Districts. The City Council serves as the Board of Directors; however, the City has no liability for the Districts’ debt. Although it is legally separate from the City, the Districts are reported as if it is part of the primary government because the District’s governing body is substantively the same as the governing body of the City and management of the City has operational responsibility for the Districts. The following are the community facilities districts currently operating in the City of Goodyear.           Goodyear Community Facilities General District No. 1 Goodyear Community Facilities Utilities District No. 1 Wildflower Ranch Community Facilities District No. 1 Wildflower Ranch Community Facilities District No. 2 Estrella Mountain Ranch Community Facilities District Cottonflower Community Facilities District Centerra Community Facilities District Cortina Community Facilities District Palm Valley Community Facilities District No. 3 King Ranch Community Facilities District Complete financial statements of the individual component units may be obtained at the entities’ administrative offices or online at www.goodyearaz.gov/cfd. Page 55 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the City as a whole. Generally, the effect of interfund activity has been removed from the government-wide financial statements. Net interfund activity and balances between the governmental activities and the business-type activities are shown in the government-wide financial statements. The “doubling up” effect of internal service fund activity has been removed from the government-wide statements with the expenses shown in the various functions on the Statement of Activities. These statements are to distinguish between the governmental and business-type activities of the City. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 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, state-shared revenues, investment income and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Fund Balances – Governmental Funds As of June 30, 2018, fund balances of the governmental funds are classified as follows: Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed - amounts that can be used only for specific purposes determined by a formal action of City Council. City Council is the highest level of decision-making authority for the City. Commitments may be established, modified, or rescinded only through resolutions approved by City Council. Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the City’s adopted policy, the City appropriates funding for information technology (IT) replacement, fleet replacement, risk management, police and fire equipment, parks and traffic signal asset management reserves. In addition, amounts encumbered related to projects that carry over into the next fiscal year are reported as assigned. The accumulated appropriations for these purposes which have not been spent are reflected as assigned fund balances. Only City Council or the City’s Finance Director may assign amounts for specific purposes. Page 56 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unassigned - includes all spendable amounts not contained in the other classifications. The General Fund is the only fund that can report a positive unassigned fund balance. In other governmental funds, other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. The General Fund has Unassigned Funds consisting of a contingency reserve in the amount of $14.6 million. The contingency reserve is used to set aside resources to cover unanticipated deficits or revenue reductions that may be caused by adverse economic conditions or public emergency. The amount of the contingency reserve is equal to or greater than 15 percent of fiscal year 2018 on-going revenues. When an expenditure is incurred for purposes for which both restricted and unassigned fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless City Council or the City’s Finance Director has provided otherwise in its commitment or assignment actions. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-wide Financial Statements - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect on internal activity has been eliminated from the governmentwide financial statements. Fund Financial Statements - Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible 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 are generally recognized when the related fund liability is incurred, as under accrual accounting. However, debt services expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, sales taxes, franchise taxes, licenses and permits, charges for service, special assessments and investment income associated with the current fiscal period are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenues as soon as all eligibility requirements imposed by the grantor or provider have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the government. Page 57 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City reports the following major governmental funds: General Fund - This fund is the general operating fund of the City. It accounts for all financial resources of the City, except those either required to be accounted for in other funds or when the city determines there is an operational advantage to do so. McDowell Road Commercial Corridor Improvement District Debt Service Fund - This fund accounts for the debt portion of the McDowell Road Improvement District. Community Facilities Districts - Debt Service Fund - This fund accounts for the debt portion of the City’s Community Facilities Districts, which are component units that provide general infrastructure and capital assets for the property within each District’s boundaries. The City reports the following major proprietary funds: Water and Wastewater Fund - This fund accounts for the City’s water and wastewater utility operations, including the utility development impact fees. Sanitation Fund - This fund is used to account for the activities of the City’s sanitation operations. Internal Service Fund – This fund is used to account for 1) citywide preventative maintenance, repairs, and safety inspections for City vehicles and equipment and 2) self-insurance for employee benefits. The Internal service fund activities are reported as governmental activities on the government-wide statements. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for water, wastewater, and sanitation services. Operating expenses for these funds include the administrative expenses, cost of sales and services, and depreciation. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Pension Trust Fund – This fund is used to account for the Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan Fund, a defined contribution plan for which the assets are held by the City in a trustee capacity. The Pension Trust Fund is reported using the accrual basis of accounting. Agency Funds – The City holds these assets as an agent for individuals, private organizations or others in a temporary custodial capacity. The City currently maintains four agency funds. The four funds account for monies donated by individuals for the GAIN, Fill-A-Need, Shop With A Cop, and Arizona in Action activities. Fiduciary funds account for assets held by the City in a trustee or agency capacity on behalf of others. The reporting focus is upon net position and changes in net position and employs accounting principles similar to proprietary funds. Fiduciary funds are not included in the government-wide financial statements considering they are not assets of the City available to support City programs. Page 58 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. The City’s non-major funds are as follows: Special Revenue Funds Highway User Revenue Fund (HURF) Community Facilities Districts Grants Fund Ball Park Fund Debt Service Fund Capital Projects Funds Non-Utility Development Impact Fees Fund GO Bonds Capital Projects Fund E. Cash and Cash Equivalents Cash represents amounts in demand deposits and amounts held in trust by financial institutions. The funds held in trust are available to the City upon demand. The City considers short-term investments (including restricted assets) in the State of Arizona investment pool, mutual fund-money market, U.S. Treasury bills and notes with maturities of three months or less at acquisition date to be cash equivalents. F. Investments Goodyear maintains investment accounts for funds that are not legally required to be maintained separately. Each fund's equity in investments represents that fund's position in the consolidated accounts and determines that fund's allocation of interest earned. Arizona Revised Statutes regulate the investment of surplus cash. Goodyear limits its investments to U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate notes, commercial paper, and money market accounts. Investments are stated at fair value based on quoted market prices and cash equivalents are stated at amortized cost. G. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of inter-fund loans) or “advances to/from other funds” (i.e., the non-current portion of the inter-fund loans). All trade and property tax receivables are shown net of allowance for uncollectibles. Trade accounts receivable in excess of 180 days comprise the trade accounts receivables allowance for uncollectibles. Page 59 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property taxes are levied by the City and collected by the Maricopa County Treasurer. Property taxes are levied no later than the third Monday of August and are payable in two installments due October 1 of the current year and March 1 of the subsequent year. Taxes become delinquent after the first business day of November and May, respectively. Interest attaches on installments after the delinquent date. A lien attaches to the property on the first day of January preceding the assessment and levy of taxes. Delinquent amounts bear interest at the rate of 16 percent. Maricopa County, at no charge to the taxing entities, bills and collects all property taxes. Public auctions of properties which have delinquent real estate taxes are held in February. H. Inventory Inventories are valued at average cost using the first-in, first-out (FIFO) flow method. Inventory, which consists of expendable supplies and vehicle repair parts, is recorded as an expenditure at the time individual inventory items are consumed rather than when purchased. I. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures when consumed rather than when purchased. J. Restricted Assets Certain proceeds of the City’s bonds, as well as certain resources set aside for their repayment, are classified as restricted cash and cash equivalents on the government-wide Statement of Net Position, the Balance Sheet and Proprietary Statement of Net Position because their use is limited by applicable bond covenants. K. Capital Assets Capital assets, which include land, land improvements, artwork, right of way, streetscape, buildings and improvements, vehicles, machinery, equipment, construction in progress, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life of more than one year. Capital assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects as they are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Page 60 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Certain capital assets of the City are depreciated using the straight-line method over the following estimated useful lives: Assets Infrastructure Land Improvements Buildings and Improvements Vehicles, Furniture and Equipment Water Rights Years 20-65 15 7-50 3-20 100 The City has a collection of artwork presented both in buildings and public outdoor spaces. The true value of the art is expected to either be maintained at cost or appreciate over time, and thus, the art is not depreciated. If individual pieces are lost or destroyed, the loss is recorded. L. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position 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 loss on refunding and deferred outflows related to pensions and OPEB reported in the governmentwide statement of net position. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government only has three 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 pensions and OPEB, and deferred gain on refunding. M. Compensated Absences The City’s employee vacation and sick leave policies provide for granting vacation and sick leave with pay. Sick leave and vacation benefits vest at the employee’s current rate of pay. The current and long-term liabilities for accumulated vacation and sick leave are reported on the government-wide financial statements and in the proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignation and retirements. Resources from the General Fund are generally used to liquidate the governmental funds liabilities for compensated absences. N. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Deferred amounts on refunding result from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Page 61 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. O. Inter-fund Activity Flows of cash from one fund to another without a requirement for repayment are reported as inter-fund transfers. Inter-fund transfers between governmental funds are eliminated in the Statement of Activities. Inter-fund services provided and used are not eliminated in the process of consolidation. Inter-fund transfers in the fund statements are reported as other financing sources/uses in governmental funds and fall below the non-operating revenues/expenses in the proprietary funds. P. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Q. Budgetary Data According to the laws of the State of Arizona, all operating budgets must be approved by their governing board on or before the second Monday in August to allow sufficient time for legal announcements and hearings required for the adoption of the property tax levy on the third Monday in August. In April, the proposed budget for the following fiscal year is presented by the City Manager to the City Council. The budget includes proposed expenditures and the means of financing them. A public meeting is held to obtain citizen comment. Prior to June 30, the City Council legally enacts the budget, through the passage of an ordinance. The ordinance sets the limit for expenditures for the year, within the voter mandated state expenditure limitation. Additional expenditures may be authorized if directly necessitated by a natural or man-made disaster as prescribed in the state constitution. There were no supplemental appropriations made during fiscal year 2018. The maximum legal expenditure permitted for the year is the total budget as adopted. All funds of the City have legally adopted budgets. The initial budget for the fiscal year may be amended during the year in a legally permissible manner. The City adopts the budget by major program area for the General Fund and by fund for all others. In practice, the City Council approves all budget transfers that cross appropriation lines on a monthly basis. All unencumbered expenditure appropriations expire at the end of the fiscal year. Encumbered amounts are re-budgeted in the following year as deemed appropriate and necessary after review by the Budget Office. Budgetary carry forwards are approved by the City Council through the budgetary process. Page 62 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budgets are adopted on a basis differing from GAAP in that for budgetary purposes: (1) bond proceeds for enterprise funds are considered revenue; (2) capital outlays for enterprise funds are treated as expenses; (3) debt service principal payments are treated as expenses for enterprise funds; (4) accrued compensated absences are not recognized as expenses; (5) depreciation and amortization are not recognized as expenses; (6) contributions to pension plans are recognized as an expense for enterprise funds. R. Pensions and Other Postemployment Benefits For purposes of measuring the net pension and other postemployment benefit (OPEB) assets and liabilities, related deferred outflows of resources and deferred inflows of resources, and related expenses, information about the pension and OPEB plans’ fiduciary net position and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plan. 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. NOTE 2 CASH AND INVESTMENTS At June 30, 2018, cash and cash equivalents are presented as follows: Governmental Activities Cash and cash equivalents $ 69,896,584 Restricted cash and cash equivalents 16,011,577 Total $ 85,908,161 Business Activities $ 5,392,465 12,774,476 $ 18,166,941 Fiduciary Funds $ 37,626 $ 37,626 Total $ 75,326,675 28,786,053 $ 104,112,728 The restricted cash and cash equivalents are proceeds from debt issuances that are held in trustee accounts for the purpose of major capital improvements as well as funds held in trustee accounts for the purpose of debt service payments. The City also restricts the cash and cash equivalents in the Community Facilities Districts Debt Service Fund. Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s portion of this pool is displayed on the government-wide Statement of Net Position, and on the fund financial statements, as “Cash and cash equivalents” and “Investments”. At June 30, 2018, the City had $16,100 of cash on hand. The carrying amount of the City’s deposits totaled $28,820,543, and the bank balance was $31,704,533. Of the bank balance, $250,000 was covered by federal depository insurance, $13,720,104 was covered by the Statewide Pooled Collateral Program, and $17,566,542 were securities held by the pledging financial institution’s trust department in the City’s name. Page 63 NOTE 2 CASH AND INVESTMENTS Cash Equivalents The City invests in the Local Government Investment Pool 5 (LGIP), an investment pool managed by the State Treasurer’s Office that allows governments within the State to pool their funds for investment purposes. The LGIP is not registered with the Securities Exchange Commission under the 1940 Investment Advisors Act. The State Board of Investment has oversight responsibilities of the investment pool in accordance with ARS 35-311. The pool’s policy is to invest in fixed-rate securities with a final maturity less than 36 months from the settlement date of the purchase and variable-rate securities with final maturity less than 5 years. The weighted average to maturity is 37 days. The net asset value per share of the pool at June 30, 2018 was $1.00. The Arizona State Treasurer issues a publicly available financial report that includes financial statements and required supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700 West Washington, Phoenix, Arizona 85007 or www.aztreasury.gov. Funds held in the State Treasurer’s Local Government Investment Pool represent a proportionate interest in the pool’s portfolio; however, the City’s portion is not identified with specific investments and is not subject to custodial credit risk. At June 30, 2018, the City’s funds invested with the State Treasurer totaled $75,275,885. The City’s investment in the State of Arizona’s local government investment pool is stated at fair value which also approximates the value of the investment upon withdrawal. Investment Type LGIP Total Investment Type LGIP Total Total $ 75,275,885 $ 75,275,885 Remaining Maturity (in Years) Less than 1 $ 75,275,885 $ 75,275,885 Total $ 75,275,885 $ 75,275,885 Rating as of Year End AAAF/S1+ $ 75,275,885 $ 75,275,885 Investments The City’s portfolio complies with Arizona Revised Statutes (ARS) and the City’s investment policy. The Arizona Revised Statutes regulate the investment of surplus cash. Goodyear limits its investments to U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate notes, commercial paper, and money market accounts. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. U.S. Treasury securities and Money Market Accounts are valued using quoted market prices (Level 1 inputs); while Federal Agency Securities, Corporate Notes, Mutual Funds and Negotiable Certificates of Deposit are valued using a matrix pricing model (Level 2 inputs). Page 64 NOTE 2 CASH AND INVESTMENTS At June 30, 2018 the City’s investments included the following: Investment Type U.S. Treasuries Federal Agency Securities Corporate Notes Negotiable Certificates of Deposit Money Market Fund Mutual Funds Total Investment Type U.S. Treasuries Federal Agency Securities Corporate Notes Negotiable Certificates of Deposit Mutual Funds Money Market Fund Total Total AAA $ 39,489,804 $ 19,306,515 21,129,949 12,001,579 491,423 97,860 $ 92,517,130 683,951 $ 83,951 Total $ 39,489,804 19,306,515 21,129,949 12,001,579 97,860 491,423 $ 92,517,130 AA+ $ 39,489,804 $ 19,306,515 1,354,211 Remaining Maturity (in Years) More Concentration Less than 1 1 to 2 than 2 of Credit Risk $ 4,460,451 $ 21,758,659 $13,270,694 42% 5,535,736 8,414,539 5,356,240 21% 173,243 9,206,648 11,750,058 23% 8,304,072 3,697,507 13% 97,860 0% 491,423 1% $ 10,758,713 $ 47,683,918 $34,074,499 100% AA AA$ 1,242,009 A+ $ A $ A$ 562,089 5,908,968 5,245,921 4,617,628 4,617,212 2,766,739 BBB+ $ 3,722,207 Not Rated AAAm $ $ 2,410,593 491,423 97,860 $ 60,150,530 $1,242,009 $5,179,717 $ 10,526,180 $8,012,660 $3,722,207 $2,410,593 $ 97,860 $ 491,423 Custodial Credit Risk To control custodial credit risk, State law and 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. Interest Rate Risk Interest rate risk is the risk of changes in market interest rates that will adversely affect the fair value of an investment. In order to limit interest rate and market risk, State law and the City’s investment policy sets a maximum maturity on any investment to five years. In addition, the City has adopted an average portfolio duration limitation (ranging from 90 days to three years) consistent with the primary investment objective of safety, liquidity and yield. As of June 30, 2018 the average portfolio duration was 1.95 years. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Page 65 NOTE 2 CASH AND INVESTMENTS Concentration of Credit Risk The City’s investment policy limits the diversification on both security types and length of maturity. At the time of purchase a maximum of five percent of the market value of the portfolio may be invested in debt issues by any single entity. Debt backed by the U.S. Treasury or Government Sponsored Enterprises (GSEs) are exempt from this concentration criterion. NOTE 3 RECEIVABLES Receivables, net of allowance for uncollectibles, as of year-end for the City’s individual major governmental funds and non-major governmental funds in the aggregate are as follows: Receivables: Taxes Interest Accounts Special assessments Notes Total Receivables McDowell Road Commercial General Corridor ID Fund Debt Service $ 8,420,837 $ 125,549 1,505,635 34,870,000 1,675,250 $11,727,271 $ 34,870,000 Community Facilities Non-Major Districts Debt Governmental Service Funds $ 87,657 $ 99,166 132,016 103,571 66,692 18,842,269 $ 19,033,497 $ 297,874 Total $ 8,607,660 257,565 1,675,898 53,712,269 1,675,250 $ 65,928,642 As of June 30, 2018, the special assessment and notes receivable balances are not expected to be collected within the next year. Special assessment receivables will be collected in conjunction with the debt retirement schedule for the related bonds outstanding. The notes receivable mature in 2044 and accrue interest at 3.26 percent annum. The following table summarizes the City’s receivables for the proprietary funds as of June 30, 2018. Receivables: Interest Accounts Less: Allowance Total Receivables Water and Wastewater Fund $ 120,922 5,014,714 5,135,636 Sanitation Fund $ 2,992 908,768 911,760 22,519 $ 5,113,117 $ 8,098 903,662 $ Total 123,914 5,923,482 6,047,396 30,617 $ 6,016,779 Revenues of the Water & Wastewater Fund and Sanitation Fund are reported net of uncollectible amounts. Total bad debt expense related to the Water & Wastewater Fund revenues and Sanitation Fund revenues for the current year are $60,425 and $13,407, respectively. Page 66 NOTE 4 CAPITAL ASSETS A summary of capital assets activity for the fiscal year ended June 30, 2018 follows: Beginning Balance Governmental Activities Capital assets, not being depreciated: Land Artwork Construction in progress Right of Way Streetscape Total capital assets, not being depreciated Capital assets, being depreciated: Land improvements Infrastructure Buildings and improvements Vehicles, furniture and equipment Total capital assets being depreciated Less accumulated depreciation for: Land improvements Infrastructure Buildings and improvements Vehicles, furniture and equipment Total accumulated depreciation 4,443,171 382,365,497 272,556,078 44,026,122 703,390,868 226,076 15,536,624 12,011,905 4,632,421 32,407,026 (1,374,177) (115,888,320) (63,362,813) (27,260,653) (207,885,963) (295,861) (9,559,576) (7,976,732) (3,619,372) (21,451,541) Total capital assets, being depreciated, net Governmental activities capital assets, net 495,504,905 $ 652,711,038 10,955,485 $ 15,585,868 $ 32,493,472 247,016 24,578,294 90,826,343 9,061,008 157,206,133 Beginning Business-type Activities Balance Capital assets, not being depreciated: Land $ 4,108,251 Artwork 146,978 Construction in progress 7,913,766 Total capital assets, not being depreciated 12,168,995 Capital assets, being depreciated: Infrastructure 211,605,866 Buildings and improvements 108,985,820 Vehicles, furniture and equipment 15,545,086 Water rights 19,562,714 Total capital assets being depreciated 355,699,486 Less accumulated depreciation for: Infrastructure (47,844,667) Buildings and improvements (21,022,922) Vehicles, furniture and equipment (9,503,589) Water rights accumulation (1,845,495) Total accumulated depreciation (80,216,673) Total capital assets, being depreciated, net Business-type activities capital assets, net Page 67 275,482,813 $287,651,808 Increase $ Ending Balance Decrease 9,099 4,598,216 23,068 $ 3,508,908 20,068,938 4,464 4,630,383 23,582,310 $ 28,984,564 256,115 9,107,572 90,844,947 9,061,008 138,254,206 644,243 644,243 4,669,247 397,902,121 284,567,983 48,014,300 735,153,651 610,292 610,292 (1,670,038) (125,447,896) (71,339,545) (30,269,733) (228,727,212) 33,951 506,426,439 $23,616,261 $ 644,680,645 Increase $ 3,462,410 10,038,689 13,501,099 4,555,747 5,599,805 850,349 483,390 11,489,291 (4,096,234) (2,734,110) (684,937) (191,598) (7,706,879) 3,782,412 $ 17,283,511 Ending Balance Decrease $ $ 5,936,809 5,936,809 336,899 336,899 336,899 336,899 7,570,661 146,978 12,015,646 19,733,285 216,161,613 114,585,625 16,058,536 20,046,104 366,851,878 (51,940,901) (23,757,032) (9,851,627) (2,037,093) (87,586,653) 279,265,225 $ 5,936,809 $ 298,998,510 NOTE 4 CAPITAL ASSETS Depreciation expense was charged to functions/programs as follows: Governmental activities: General government Public safety Highway and streets Culture and recreation Public works Total depreciation expense Business-type activities: Water and wastewater Sanitation Total depreciation expense $ $ $ $ 573,881 2,507,657 14,021,769 3,363,946 984,288 21,451,541 7,545,004 161,875 7,706,879 NOTE 5 LOAN PAYABLE The City received a loan from the Water Infrastructure Finance Authority. The loan was used for expansion of an effluent wastewater facility and to rehabilitate an existing effluent lift station. The loan payable at June 30, 2018, is as follows: Description Business-type activities: Water Infrastructure Finance Authority Loan Total business-type activities Interest Rate (Including Fees) 2.00% Maturity Outstanding Principal June 30, 2018 7/1/19-29 $ $ Due Within One Year 3,323,972 $ 3,323,972 $ Annual debt service requirements to maturity on the loans payable at June 30, 2018 are summarized as follows: Year ending June 30: 2019 2020 2021 2022 2023 2024-28 2029-33 Total Page 68 Business-type Activities Principal Interest $ $ 33,240 273,157 63,748 278,620 58,230 284,193 52,602 289,877 46,861 1,538,700 144,097 659,425 13,254 $ 3,323,972 $ 412,032 NOTE 6 GENERAL OBLIGATION BONDS PAYABLE Bonds payable at June 30, 2018, consisted of the outstanding general obligation and refunding bonds presented below. The bonds are generally callable with interest payable semi-annually. Of the total amounts originally authorized, $142,641,616 remains unissued. The bonds payable at June 30, 2018 are presented below. Purpose Governmental activities: General Obligation Bonds Refunding Series 2009 General Obligation Bonds Refunding Series 2010 (Build America Bonds) General Obligation Bonds Refunding Series 2016 General Obligation Bonds Series 2017 Total governmental activities Business-type activities: General Obligation Bonds Refunding Bond Series 2009 General Obligation Bonds Refunding Series 2010 (Build America Bonds) General Obligation Bonds Refunding Bond Series 2010 General Obligation Bonds Refunding Bond Series 2014 General Obligation Bonds Refunding Bond Series 2016 Total business-type activities Total Interest Rates Remaining Maturities Outstanding Principal June 30, 2018 5.25-5.125% 7/1/27-29 $ 5.40-6.00% 7/1/20-30 105,000 2.00-4.00% 3.00-5.00% 7/1/19-37 7/1/19-37 18,050,887 23,230,000 $ 41,990,387 5.125-5.25% 7/1/27-29 $ 5.40-6.30% 7/1/21-30 5,710,000 4.018-5.125% 7/1/21-30 4,610,000 3.60-4.00% 7/1/19-20 6,200,000 2.00-4.00% 7/1/19-37 33,579,133 55,074,633 Due Within One Year 604,500 4,975,500 $ 97,065,020 Annual debt service requirements to maturity on general obligation bonds payable at June 30, 2018 are summarized as follows: Year ending June 30: 2019 2020 2021 2022 2023 2024-28 2029-33 2034-38 Total Page 69 Governmental Activities Business-type Activities Principal Interest Principal Interest $ $ 599,670 $ $ 1,492,721 4,323,113 1,146,427 5,246,887 2,234,786 3,069,907 1,065,963 4,320,093 2,090,590 2,253,314 1,000,865 2,921,686 1,953,331 1,620,699 946,870 3,169,301 1,838,786 8,787,326 3,787,848 18,282,674 7,084,737 10,034,015 2,263,620 13,450,995 2,902,735 11,902,013 817,321 7,682,997 882,069 $ 41,990,387 $ 11,628,584 $ 55,074,633 $ 20,479,755 NOTE 7 REVENUE BONDS PAYABLE Revenue bonds payable at June 30, 2018 consisted of the outstanding revenue bonds and refunding bonds presented below. The bonds are generally callable after 10 years with interest payable semi-annually. The bonds payable at June 30, 2018 are presented below: Purpose Governmental activities: Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2011A Public Improvement Corporation Municipal Facilities Revenue Bonds, Series 2011B Public Improvement Corporation Municipal Facilities Revenue Tax-Exempt Revenue Bonds, Series 2012A Public Improvement Corporation Municipal Facilities Revenue Taxable Revenue Bonds, Series 2012B Public Improvement Corporation Municipal Facilities Revenue Refunding Bonds, Series 2016A Public Improvement Corporation Municipal Facilities Revenue Refunding Bonds, Series 2016B Public Improvement Corporation Subordination Municipal Facilities Revenue Bonds, Series 2017 McDowell Road Commercial Corridor Improvement District Refunding Bonds, Series 2018 Total governmental activities Business-type activities: Revenue Bonds, Series 2009 Revenue Bonds, Series 2010 Revenue Bonds, Series 2011 Revenue Bonds, Series 2016 Total business-type activities Interest Rates Remaining Maturities Outstanding Principal June 30, 2018 Due Within One Year 2.00%-5.25% 7/1/18-27 $ 24,500,000 $ 245,000 3.00% 7/1/18 1,515,000 1,515,000 2.48% 12/15/18-6/15/23 4,774,706 908,456 3.44% 12/15/18-6/15/23 578,159 107,882 3.00-5.00% 7/1/19-32 40,530,000 4.00-5.00% 7/1/18-31 28,190,000 3.31% 7/1/19-27 9,755,000 1.95-3.60% 1/1/19-31 34,870,000 1,610,000 $ 144,712,865 $ 5,236,338 6.75% 5.00%-5.625% 2.00%-5.50% 2.00-5.00% 7/1/49 7/1/22-39 7/1/18-41 7/1/18-45 $ 850,000 325,000 $ 14,950,000 13,960,000 320,000 10,595,000 995,000 $ 39,830,000 $ 1,315,000 Revenue bond debt service requirements to maturity are as follows: Governmental Activities Principal Interest Year ending June 30: 2019 2020 2021 2022 2023 2024-28 2029-33 2034-38 2039-43 2044-48 2049-50 Total Page 70 $ 5,236,338 9,457,750 9,814,858 10,187,681 10,581,238 53,630,000 45,805,000 $ 5,659,682 5,556,375 5,195,027 4,811,960 4,406,120 15,464,435 4,062,031 $ 144,712,865 $ 45,155,630 Business-type Activities Principal Interest $ 1,315,000 1,340,000 1,390,000 1,480,000 835,000 4,800,000 7,665,000 11,145,000 8,320,000 1,215,000 325,000 $ 39,830,000 $ 1,953,263 1,926,132 1,876,582 1,828,657 1,787,988 8,291,319 6,804,082 4,199,804 1,213,935 202,815 32,907 $ 30,117,484 NOTE 7 REVENUE BONDS PAYABLE During the year ended June 30, 2018, the City issued $34,870,000 in refunding bonds, with an effective interest rate of 3.32 percent, to advance refund $34,870,000 of outstanding improvement district revenue bonds, with an average interest rate of 5.25 percent. The net proceeds of $35,731,065, which includes $1,352,010 of supplemental interest certificates, (after payment of $490,945 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent, to provide for all future debt service payments of the refunded bonds. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The net carrying amount of the old debt exceeded the reacquisition price by $256,163. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 13 years by $6,396,020 and resulted in an economic gain of $4,252,599. Pledged Revenue A. Revenue Bonds Revenue bonds are collateralized by a pledge of the gross revenues of the utility systems, as defined in the bond indentures. The bonds are payable solely from water and wastewater customer net revenues with the last scheduled debt service payment occurring on 7/1/2049. Proceeds of the bonds were used for improvements to the City’s water and wastewater system. Principal and interest paid for the current year and total water and wastewater customer net revenues were $4,035,218 and $21,678,928, respectively. B. Public Improvement Corporation Municipal Facilities Revenue Bonds The public improvement corporation municipal facilities revenue bonds are secured by excise taxes or other undesignated general fund revenues and the property referred to as Goodyear Municipal Complex. Proceeds from the bonds were used to construct a major league baseball training facility as well as other municipal facilities. The last scheduled debt service payment on the bonds is 7/1/2032. Principal and interest paid for the current year and total pledged revenues were $8,210,941 and $69,446,051, respectively. C. McDowell Road Corridor Improvement District Bonds The City acts as an administrator for the McDowell Road Corridor Improvement District whereby it collects the assessments levied against owners of property within the established district and disburses the amounts collected to retire the bonds issued to finance infrastructure improvements. The last scheduled debt service payment on the bond is 1/1/2031. At June 30, 2018, the special assessments receivable, together with amounts paid in advance and interest to be received over the life of the assessment period, is adequate for the scheduled maturities of the bonds payable and the related interest. Principal and interest paid for the current year and total net revenues and fund balance available to service the debt were $3,553,807 and $3,628,351, respectively. The McDowell Road Corridor Improvement District bonds are collateralized by properties within the district. In the event of default by the property owner(s), the City may enforce an auction sale to satisfy the debt service requirements of the improvement bonds. The City is contingently liable on the bonds to the extent that proceeds from auction sales are insufficient to retire outstanding bonds. Page 71 NOTE 8 COMMUNITY FACILITIES DISTRICTS BONDS PAYABLE Community Facilities District General Obligation Bonds are issued by Community Facilities Districts (CFDs), which are special purpose districts created specifically to acquire and improve public infrastructure in specified land areas. CFD bonds are repaid by ad valorem taxes levied directly by the districts and collected by the county. Property owners in the districts are assessed for district taxes and thus for all costs associated with the districts. The City has no liability for CFD bonds. Community facilities district bonds payable at June 30, 2018 consisted of outstanding general obligation and special assessment bonds. The bonds are generally callable with interest payable semiannually. Community facilities district bonds payable at June 30, 2018, are presented below. Purpose General District No. 1: G.O. Refunding Bonds, Series 2013 Palm Valley: G.O. Refunding Bonds, Series 2016 Utilities District No. 1 CFUD No. 1 GO Refunding Bonds Series 2014 CFUD No. 1 GO Refunding Bonds Series 2015 CFUD No. 1 GO Refunding Bonds Series 2016 Wildflower Ranch District 1: G.O. Bonds, Series 1997 G.O. Bonds, Series 1998 Wildflower Ranch District 2: G.O. Bonds, Series 2000 G.O. Bonds, Series 2001 Cottonflower: Cottonflower CFD GO Refunding Series 2017 Estrella Mountain Ranch: Estrella MR CFD Special Assessment Revenue Bond Series 2015M Estrella MR CFD GO Refunding 2017 Estrella MR CFD Special Assessment Revenue Refunding Bonds Series 2018DV Estrella MR CFD Special Assessment Revenue Refunding Bonds Series 2018GV1 Estrella MR CFD Special Assessment Revenue Refunding Bonds Series 2018GV2 Estrella MR CFD Special Assessment Revenue Refunding Bonds Series 2018M Centerra: Centerra CFD GO Refunding 2016 Centerra CFD GO Bond Series 2016 Cortina: Cortina CFD GO Refunding 2017 Total business-type activities Page 72 Maturity Outstanding Principal June 30, 2018 Due Within One Year 5.000% 7/15/28 $ $ 2.000-4.000% 7/15/32 6,435,000 785,000 4.000% 3.000-4.125% 2.000-4.000% 7/15/28 7/15/29 7/15/32 9,675,000 6,265,000 18,500,000 910,000 400,000 610,000 6.500% 5.700-5.750% 7/15/22 7/15/23 225,000 325,000 40,000 40,000 6.750-7.000% 5.875 - 5.900% 7/15/25 7/15/26 365,000 410,000 35,000 35,000 2.920% 7/15/28 2,025,000 160,000 2.500-5.000% 3.000-5.000% 7/1/39 7/1/32 4,557,000 14,050,000 1,435,000 3.150% 7/1/26 1,866,000 2.810% 7/1/24 1,621,000 3.670% 7/1/30 4,612,000 3.750% 7/15/31 5,115,000 2.700% 2.700% 7/15/31 7/15/31 2,906,000 323,000 147,000 3.180% 7/15/31 1,970,000 $ 90,160,000 110,000 $ 5,267,000 Interest Rates 8,915,000 560,000 NOTE 8 COMMUNITY FACILITIES DISTRICTS BONDS PAYABLE Community Facilities District bonds debt service requirements to maturity are as follows: Year ending June 30: 2019 2020 2021 2022 2023 2024-28 2029-33 2034-38 2039 Total Governmental Activities Principal Interest $ 5,267,000 $ 4,041,166 3,889,000 3,201,904 5,155,000 3,046,130 5,485,000 2,854,976 5,955,000 2,638,592 32,472,000 9,522,579 29,909,000 3,419,249 1,375,000 342,125 653,000 33,025 $ 90,160,000 $ 29,099,746 On January 25, 2018, the Estrella Mountain Ranch Community Facilities District issued $2,296,070 in refunding bonds, including $311,070 in supplemental interest certificates with an effective interest rate of 3.13 percent, to advance refund $2,228,000 of outstanding 2002 Series Special Assessment Lien bonds, with an average interest rate of 7.375 percent. The net proceeds of $2,255,386, plus an additional contribution of $289,756, (after payment of $130,115 in underwriting fees, insurance, and other issuance costs) were immediately transferred to the refunding trustee to pay the bonds being refunded. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $27,386. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 10 years by $494,354 and resulted in an economic gain of $332,148. On January 25, 2018, the Estrella Mountain Ranch Community Facilities District issued $2,196,070 in refunding bonds, including $411,070 in supplemental interest certificates with an effective interest rate of 2.79 percent, to advance refund $2,338,000 of outstanding 2001A Series Special Assessment Lien bonds, with an average interest rate of 7.875 percent. The net proceeds of $2,368,686, plus an additional contribution of $481,153, (after payment of $128,212 in underwriting fees, insurance, and other issuance costs) were immediately transferred to the refunding trustee to pay the bonds being refunded. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $30,686. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 8 years by $676,678 and resulted in an economic gain of $344,528. On January 25, 2018, the Estrella Mountain Ranch Community Facilities District issued $5,189,463 in refunding bonds, including $400,463 in supplemental interest certificates with an effective interest rate of 3.67 percent, to advance refund $5,061,000 of outstanding 2007 Series Special Assessment Revenue bonds, with an average interest rate of 6.72 percent. The net proceeds of $5,117,196, plus an additional contribution of $573,099, (after payment of $164,641 in underwriting fees, insurance, and other issuance costs) were immediately transferred to the refunding trustee to pay the bonds being refunded. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $56,196. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 15 years by $1,528,021 and resulted in an economic gain of $936,835. Page 73 NOTE 8 COMMUNITY FACILITIES DISTRICTS BONDS PAYABLE On January 25, 2018, the Estrella Mountain Ranch Community Facilities District issued $5,634,014 in refunding bonds, including $305,014 in supplemental interest certificates with an effective interest rate of 3.75 percent, to advance refund $5,439,000 of outstanding 2007 Series Special Assessment Revenue bonds, with an average interest rate of 5.75 percent. The net proceeds of $5,490,723, plus an additional contribution of $562,346, (after payment of $170,912 in underwriting fees, insurance, and other issuance costs) were immediately transferred to the refunding trustee to pay the bonds being refunded. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $51,723. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 15 years by $926,844 and resulted in an economic gain of $570,353. During the year ended June 30, 2018, the Utilities Communities Facilities District partially defeased $2,595,000 in Series 2014 General Obligation refunding bonds. Existing resources of $2,715,702, (after payment of $22,859 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities, which are essentially risk-free as to amount, timing, and collection of interest and principal. Those securities were deposited in an irrevocable trust with an escrow agent, to provide for all future debt service payments of the refunded general obligation bonds. As a result, the refunded general obligation bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $36,893. This amount is reported as a special item on the Statement of Activities in the current year. This partial defeasance was undertaken to reduce total debt service payments. NOTE 9 CHANGES IN LONG-TERM LIABILITIES Long-term liabilities activity for the year ended June 30, 2018 was as follows: Beginning Balance, as restated Additions Reductions Ending Balance Due Within One Year $ 6,058,984 41,990,387 90,160,000 $ 2,330,471 Governmental activities: Compensated absences payable General obligation bonds payable Community Facilities District bonds payable $ 5,983,954 20,471,357 98,797,000 Public improvement bonds Revenue bonds payable Premiums Discounts Net OPEB liability Net pension liability Governmental activities long-term liabilities 114,943,467 5,100,602 109,842,865 3,626,338 36,530,000 34,870,000 36,530,000 34,870,000 1,610,000 19,952,440 722,171 2,820,967 17,853,644 (36,173) (1,644) (34,529) 228,815 31,119 197,696 62,569,805 1,239,499 61,330,306 $359,440,665 $ 79,526,848 $ 76,698,160 $362,269,353 $ 12,833,809 Business-type activities: Compensated absences payable General obligation bonds payable Revenue bonds payable Loans payable Premiums Discounts Net OPEB liability Net pension liability Business-type activities long-term liabilities Page 74 $ 632,249 63,298,663 41,240,000 3,591,773 4,600,195 (512,048) 5,569,691 $118,420,523 $ 5,031,677 $ 4,956,647 25,015,000 3,495,970 13,888,000 22,525,000 $ $ 440,702 $ 524,190 8,224,030 1,410,000 267,801 298,876 (22,227) 5,267,000 $ 548,761 $ 209,231 55,074,633 39,830,000 1,315,000 3,323,972 4,301,319 (489,821) 12,911 12,911 36,659 5,533,032 453,613 $ 10,739,329 $108,134,807 $ 1,524,231 NOTE 10 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS At June 30, 2018, interfund balances were as follows: General Fund Non-Major Governmental Funds Internal Service Funds Total Receivable Amount $ 1,091,866 Payable Amount $ $ 1,091,866 856,498 235,368 $ 1,091,866 Interfund balances resulted from (1) the borrowing of cash to cover cash deficits and (2) to account for the amount due for Community Facilities Districts’ operational expenditures paid from the General Fund. All interfund balances are expected to be paid within one year. At June 30, 2018, advances between funds were as follows: General Fund Non-Major Governmental Funds Total Receivable Amount $ 1,045,531 Payable Amount $ $ 1,045,531 1,045,531 $ 1,045,531 An advance from the General Fund to the Non-Utility Development Impact Fees Fund, a non-major governmental fund, existed at fiscal year end due to the timing of impact fee projects. Construction expenditures associated with these projects occurred during the fiscal year and the impact fees needed to fund the projects are expected to be collected in future years. Transfers during the fiscal year were as follows: General Fund Non-Major Governmental Funds Water and Wastewater Fund Sanitation Fund Total Transfers Out $ 9,697,843 503,586 2,800,000 900,000 $13,901,429 Transfers In $ 4,092,668 9,808,761 $13,901,429 All transfers made during the year were to cover operations or debt service as approved during budget development. NOTE 11 CONTINGENT LIABILITIES Federal and State grants and loans - The City has received a number of grants and loans from both the Federal and State governments. Although the programs have been audited, not all audits have been approved as of June 30, 2018; however, the City expects no material disallowances of expenditures. Lawsuits - The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments - The City is contingently liable for payments from the general fund to entities that the City has entered into job credit agreements for establishing businesses within the City. These credits will be paid out when the established criteria are met for job creation and other economic growth factors as specified by the development agreements. Each year the City appropriates for these obligations through the budget process. Page 75 NOTE 12 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The City’s property and liability insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the City is a participating member. The Arizona Municipal Risk Retention Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has authority to assess its members additional premiums should reserve and annual premiums be insufficient to meet the pool’s obligations. During the year ended June 30, 2018, the City established a Self-Insurance Trust (an Internal Service Fund) to account for and finance its uninsured risks of loss related to healthcare benefits. Under this program, the Fund provides coverage for up to a maximum of $250,000 for each claim, not to exceed an annual aggregate of $7,577,975. The Fund purchases commercial insurance for claims in excess of this coverage. Settled claims have not exceeded this coverage in any of the past three fiscal years. Liabilities of the fund 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 (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from subrogation, are another component of the claims liability estimate. Changes in the balances of claims liabilities during the past two years are as follows: Current Year Claims and Changes in Estimates Claims Payable Beginning of Year Healthcare Benefits 2017-18 $ $ Claims Payable at End of Year Claim Payments 6,428,728 $ 5,948,981 $ 479,747 The City continues to carry commercial insurance for workers compensation. Settled claims have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The City contributes to the plans described below. The plans are component units of the State of Arizona. Aggregate Amounts. At June 30, 2018, the City reported the following aggregate amounts related to pensions and other postemployment benefits (OPEB) for all plans to which it contributes. Net pension and OPEB assets Net pension and OPEB liability Deferred outflows of resources Deferred inflows of resources Pension and OPEB expense Page 76 Governmental Activities $ 178,406 61,528,002 17,501,132 3,358,310 7,691,414 Business-type Activities $ 19,553 5,545,943 777,050 382,323 551,376 $ Total 197,959 67,073,945 18,278,182 3,740,633 8,242,790 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The City reported $7,745,204 of pension and OPEB contributions as expenditures in the governmental funds related to all plans to which it contributes. A. Arizona State Retirement System Plan Description. City employees 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 costsharing 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 the ASRS website at www.azasrs.gov. Benefits Provided. The ASRS provides retirement, health insurance premium supplement, longterm disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit 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 and 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 months of last 120 months Highest 60 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. Retired and disabled members, with at least five years of credited service, are eligible to receive health insurance premium benefits. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $150 per month to $260 per month depending on the age of the member and dependents. For members with five to nine 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 long-term disability benefit in the event they become unable to perform their work. The monthly benefit is equal to two-thirds of their 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. Page 77 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS 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 current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.50 percent (11.34 percent for retirement and 0.16 percent for long-term disability) of the members’ annual covered payroll, and the City was required by statute to contribute at the actuarially determined rate of 11.50 percent (10.90 percent for retirement, 0.44 percent for health insurance premium benefit, and 0.16 percent for long-term disability) of the active members’ annual covered payroll. The City’s contributions for the year ended June 30, 2018 were as follows: Pension Health Insurance Premium Long-Term Disability $ Contributions 2,760,437 143,399 40,972 Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members who return to work in positions that would typically be filled by an employee who contributes to ASRS. The City was required by statute to contribute at the actuarially determined rate of 9.49 percent (9.26 for retirement, 0.10 percent for health insurance premium benefit, and 0.13 percent for longterm disability). ACR contributions are included in employer contributions presented above. The City’s pension and OPEB contributions are paid by the same funds as the employee’s salary, with the largest component coming from the General Fund. Pension and OPEB Assets/Liability. The net pension and OPEB assets/liability were measured as of June 30, 2017. 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, 2016, to the measurement date of June 30, 2017. The City’s proportion of the net asset/liability was based on the City’s actual contributions to the applicable plan relative to the total of all participating employers’ contributions to the plan for the year ended June 30, 2017. At June 30, 2018, the City reported the following amounts for its proportionate share of the ASRS plans net assets/liability. In addition, at June 30, 2017, the City’s percentage proportion for each plan and the related change from its proportion measured as of June 30, 2016 was: Pension Health Insurance Premium Long-Term Disability Net (Assets) Liability $ 37,471,443 (132,414) 87,433 City % Proportion 0.241 0.243 0.241 Increase (Decrease) (0.002) Pension/OPEB Expense and Deferred Outflows/Inflows of Resources. The City has deferred outflows and inflows of resources related to the net pension and OPEB assets/liability. Certain changes in the net pension and OPEB assets/liability are recognized as pension and OPEB expense over a period of time rather than the year of occurrence. For the year ended June 30, 2018, the City recognized pension and OPEB expense as follows: Pension Health Insurance Premium Long-Term Disability Page 78 $ Expense 2,380,003 77,450 46,648 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Deferred Outflows of Resources Health Insurance Premium Pension Differences between expected and actual experience Changes of assumptions or other inputs $ Long-Term Disability $ $ 1,627,471 Net difference between projected and actual earnings on pension investments 269,019 Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement date Total $ Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings on pension investments Changes in proportion and differences between contributions and proportionate share of contributions Total 421,102 2,760,437 5,078,029 143,399 143,399 $ $ 40,972 40,972 Deferred Inflows of Resources Health Insurance Long-Term Premium Disability Pension $ 1,123,601 $ $ 1,120,463 149,093 $ 182,805 2,426,869 160 149,253 $ 13,079 $ 13 13,092 The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as an adjustment of the net pension and OPEB assets/liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized in pension and OPEB expense as follows: Year Ending June 30: 2019 2020 Pension $ (1,214,335) 1,524,470 $ (37,306) (37,306) Long-Term Disability $ (3,272) (3,272) 2021 442,542 (37,306) (3,272) 2022 (861,955) (37,306) (3,272) (28) (2) 2023 Thereafter Page 79 Health Insurance Premium (3) NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension and OPEB liability are as follows: Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent base increases Mortality rates Healthcare cost trend rate Pension June 30, 2016 June 30, 2017 Entry age normal 8.0% 3.0-6.75% 3.0% Included 1994 GAM Scale BB Not applicable OPEB June 30, 2016 June 30, 2017 Entry age normal 8.0% Not applicable 3.0% Not applicable 1994 GAM Scale BB Not applicable The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return. The long-term expected rate of return on ASRS plan investments was determined to be 8.70 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of 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 weighting 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 arithmetic real rates of return for each major asset class for all ASRS plans are summarized in the following table: Asset Class Equity Fixed income Real estate Multi-asset Commodities Total Page 80 Target Allocation 58% 25% 10% 5% 2% 100% Long-Term Expected Real Rate of Return 6.73% 3.70 4.25 3.41% 3.84 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Discount Rate. The discount rate used to measure the ASRS total pension and OPEB liability was 8.0 percent, which is less than the long-term expected rate of return of 8.70 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 statute. 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 investments was applied to all periods of projected benefit payments to determine the total pension and OPEB liability. Sensitivity of the Proportionate Share of the Net Pension and OPEB Assets/Liability to Changes in the Discount Rate. The following presents the City’s proportionate share of the net pension and OPEB assets/liability calculated using the discount rate of 8.0 percent, as well as what the proportionate share of the net pension and OPEB assets/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: Proportionate share of the net (assets) liability 1% Decrease Rate Pension Health Insurance Premium Long-Term Disability $ 7.0% 48,095,249 219,902 104,548 Current Discount Rate $ 8.0% 37,471,443 (132,414) 87,433 1% Increase $ 9.0% 28,594,344 (431,823) 72,922 Pension and OPEB Plan Fiduciary Net Position. Detailed information about the pension and OPEB plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov. B. Public Safety Personnel Retirement System Plan Descriptions. City public safety employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). The PSPRS administers an agent multiple-employer defined benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit (OPEB) plan. 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. The PSPRS issues a publicly available financial report that includes their financial statements and required supplementary information. The report is available on the PSPRS website at www.psprs.com. Page 81 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Benefits Provided. The PSPRS provides retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefits terms. Certain retirement, disability, and survivor benefits are calculated on the basis of age, average monthly compensation, and service credit as follows. See the publicly available PSPRS financial report for additional benefits information. Retirement Initial Membership Date: Tier 1 20 years of service, any age 15 years of service, age 62 Tier 2 25 years or 15 years of credited service, age 52.5 Final average salary is based on Highest 36 consecutive months of last 20 years Highest 60 consecutive months of last 20 years Normal retirement 50% less 2.0% for each year of 1.5 % to 2.5% per year of credited credited service less than 20 years service, not to exceed 80% or plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 50% or normal retirement, whichever is greater Years of service and age required to receive benefit Accidental disability retirement Survivor benefit: Retired members Active members 80% to 100% of retired member’s pension benefit 80% of accidental disability retirement benefit or 100% of average monthly compensation if death was the result of injuries received on the job Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. PSPRS also provides temporary disability benefits of 50 percent of the member's compensation for up to 12 months. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. Benefits range from $150 per month to $260 per month depending on the age of the member and dependents. Employees Covered by Benefit Terms. At June 30, 2018, the following employees were covered by the agent plan’s benefit terms: Retirees and beneficiaries Inactive, non-retired members Active members Total Page 82 PSPRS - Police Health Pension Insurance 24 24 13 2 101 101 138 127 PSPRS - Fire Health Pension Insurance 8 8 3 3 86 86 97 97 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS 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. Contributions rates for the year ended June 30, 2018, are indicated below. Rates are a percentage of active members’ annual covered payroll. Active members – pension City of Goodyear: Pension Health insurance PSPRS - Police 7.65% to 11.65% PSPRS - Fire 7.65% to 11.65% 29.60% 0.33% 24.18% 0.39% Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members who return to work in positions that would typically be filled by an employee who contributes to PSPRS. The City was required by statute to contribute at the actuarially determined rate of 8.00 percent for the PSPRS. ACR contributions are included in employer contributions presented above. The contributions to the pension and OPEB plans for the year ended were: Contributions Pension Health insurance PSPRS - Police $ 2,648,244 29,524 PSPRS - Fire $ 2,088,935 33,693 The City’s pension and OPEB contributions are paid by the same funds as the employee’s salary, with the largest component coming from the General Fund. Pension and OPEB Assets/Liability. At June 30, 2018, the City reported the following assets and liabilities. Net (Assets) Liability Pension Health insurance PSPRS - Police $ 17,824,499 (65,545) PSPRS - Fire $ 11,567,398 123,174 The net pension and OPEB assets/liability were measured as of June 30, 2017. The total liability used to calculate the net asset or liability was determined by an actuarial valuation as of that date. The total liability as of June 30, 2017, reflects changes of actuarial assumptions based on the results of an actuarial experience study for the 5-year period ended June 30, 2016, including decreasing the investment rate of return from 7.5 percent to 7.4 percent, decreasing the wage inflation from 4.0 percent to 3.5 percent, and updating mortality, withdrawal, disability, and retirement assumptions. Page 83 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS 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 Projected salary increases Inflation Permanent benefit increase Mortality rates Healthcare cost trend rate Pension June 30, 2017 Entry age normal 7.4% 3.5% 2.5% Included RP-2014 tables using MP-2016 improvement scale with adjustements to match current experience Not applicable OPEB June 30, 2017 Entry age normal 7.4% Not applicable Not applicable Not applicable RP-2014 tables using MP-2016 improvement scale with adjustements to match current experience Not applicable Actuarial assumptions used in the June 30, 2017, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2016. The long-term expected rate of return on PSPRS plan investments was determined to be 7.40 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 Short-term investments Absolute return Risk parity Fixed income Real assets GTAA Private credit Real estate Credit opportunities Non-U.S. equity U.S. equity Total Target Allocation 2% 2% 4% 5% 9% 10% 12% 10% 16% 14% 16% 100% Long-Term Expected Real Rate of Return 0.25% 3.75% 5.00% 1.25% 4.52% 3.96% 6.75% 3.75% 5.83% 8.70% 7.60% Discount Rate. At June 30, 2017, the discount rate used to measure the total pension and OPEB liability was 7.4 percent, which was a decrease of 0.1 percent from the discount rate used as of June 30, 2016. The projection of cash flows used to determine the PSPRS discount rates 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 for these plans to determine the total pension and OPEB liability. Page 84 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Changes in Net (Assets)/Liability Pension Increase (Decrease) PSPRS - Police Balances at June 30, 2017 Changes for the year: Service cost Interest on the total liability Changes of benefit terms 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 expense Other changes Net changes Balances at June 30, 2018 Total (Assets) Liability $ 39,390,239 Plan Fiduciary Net Position $ 22,545,318 1,914,605 2,971,515 456,529 1,914,605 2,971,515 456,529 27,494 57,481 3,790 27,494 57,481 3,790 494,534 494,534 4,452 4,452 824,808 (1,633,633) (930,370) (2,810,340) (66,210) 1,633,633 930,370 2,810,340 (1,454,686) (25,267) 333,337 4,227,727 $ 26,773,045 25,267 (333,337) 979,578 $ 17,824,499 9,635 $ 770,990 Net (Assets) Liability $ 12,209,132 Health Insurance Increase (Decrease) Net Plan Total (Assets) Fiduciary (Assets) Liability Net Position Liability $ 772,637 $ 558,694 $ 213,943 824,808 (1,454,686) $ Net (Assets) Liability $ 16,844,921 5,207,305 44,597,544 (17,372) Pension Increase (Decrease) PSPRS - Fire Balances at June 30, 2017 Changes for the year: Service cost Interest on the total liability Changes of benefit terms 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 expense Other changes Net changes Balances at June 30, 2018 Page 85 Total (Assets) Liability $ 37,322,527 Plan Fiduciary Net Position $ 25,113,395 30,113 (66,210) (30,113) 87,559 (87,559) (17,372) (774) 774 99,526 $ 836,535 $ (89,891) (65,545) 1,819,328 2,846,014 208,024 1,819,328 2,846,014 208,024 20,875 58,459 375 20,875 58,459 375 (389,024) (389,024) 21,035 21,035 222,373 (1,153,600) (1,109,821) (3,112,669) (94,084) 1,153,600 1,109,821 3,112,669 (570,665) (27,942) 301 4,777,784 $ 29,891,179 27,942 (301) (641,734) $ 11,567,398 222,373 (570,665) $ Health Insurance Increase (Decrease) Total Plan Net (Assets) Fiduciary (Assets) Liability Net Position Liability $ 761,355 $ 737,009 $ 24,346 4,136,050 41,458,577 (7,230) (570) $ 772,067 31,049 (94,084) (31,049) 66,973 (66,973) (7,230) (593) 593 90,199 $ 648,893 (90,769) $ 123,174 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Sensitivity of the Net Pension and OPEB Assets (Liability) to Changes in the Discount Rate. The following presents the City/Town’s net pension and OPEB assets (liability) calculated using the discount rates noted above, as well as what the net assets (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 PSPRS - Police: Rate Net pension (assets) liability Net OPEB (assets) liability PSPRS - Fire Rate Net pension (assets) liability Net OPEB (assets) liability Current Discount Rate 1% Increase $ 6.40 25,111,169 47,583 $ 7.40 17,824,499 (65,545) $ 8.40 11,991,466 (157,982) $ 6.40 18,856,149 242,054 $ 7.40 11,567,398 123,174 $ 8.40 5,726,141 25,880 Plan Fiduciary Net Position. Detailed information about the plans’ fiduciary net position is available in the separately issued PSPRS financial report. The report is available on the PSPRS website at www.psprs.com. Expense. For the year ended June 30, 2018, the City recognized the following as pension and OPEB expense: Expense Pension Health insurance Page 86 PSPRS - Police $ 3,322,621 19,354 PSPRS - Fire $ 2,371,319 25,396 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Deferred Outflows/Inflows of Resources. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Pension Deferred Outflows of Resources PSPRS - Police: Differences between expected and actual experience $ 819,169 Health Insurance Deferred Outflows of Deferred Inflows Resources of Resources Deferred Inflows of Resources $ 92,923 $ 3,869 $ Changes of assumptions or other inputs 2,633,505 57,533 Net difference between projected and actual earnings on plan investments 239,320 25,468 Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement date Total $ 2,648,244 6,340,238 $ 92,923 $ 29,524 33,393 $ 2,305,588 $ 871,444 $ 18,935 $ 83,001 PSPRS - Fire Differences between expected and actual experience $ Changes of assumptions or other inputs 1,924,782 84,691 Net difference between projected and actual earnings on plan investments 270,219 19,360 Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement date Total Page 87 $ 2,088,935 6,589,524 $ 871,444 $ 33,693 52,628 $ 104,051 NOTE 13 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as an adjustment of the net pension and OPEB assets/liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized in pension and OPEB expense as follows: PSPRS - Police Year Ending June 30: 2019 Health Insurance Pension $ PSPRS - Fire 804,695 $ (14,461) Health Insurance Pension $ 488,193 $ (12,133) 2020 995,258 (14,461) 683,932 (12,133) 2021 828,095 (14,461) 505,805 (12,133) 2022 344,621 (14,461) 158,113 (12,133) 2023 471,305 (8,094) 391,456 (7,293) Thereafter 155,097 (13,194) 1,401,646 (29,291) Beginning Net Position Restatement. The implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, represents a change in accounting principle. Net position as of July 1, 2017, has been restated as follows for this change in accounting principle. Statement of Activities Net position June 30, 2017 as previously reported Net OPEB asset Net OPEB liability Net position, July 1, 2017, as restated Enterprise Fund Water and Wastewater Fund Sanitation Fund Governmental Business-type $ 487,341,768 5,740 (177,127) $ 487,170,381 $ 218,290,038 994 $ 215,568,462 874 $ 2,721,576 120 $ 218,291,032 $ 215,569,336 $ 2,721,696 C. Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan The Goodyear Volunteer and Reserve Firefighter Retirement Trust Plan is a single-employer defined contribution plan, which was approved by the City Council on February 27, 1990, under Arizona Revised Statutes Section 9-981. The authority to establish and amend benefit provisions rests with the City Council. In December 1999, the council revised the pension and benefit program for the part-time firefighters. The City discontinued using part-time firefighters as of December 1, 2005. The assets of the plan are valued annually and the earnings or loss is distributed among the participant’s accounts in the plan. The only expenditures being made from this fund are administration fees, benefit payments, and refunds to those firefighters who leave the service of the Fire Department before becoming eligible for pension benefits. The cost of administering the plan is financed from investment earnings. Retirement with full benefits can be at age fifty (50) or fifteen years of credited service. This plan was fully vested as of June 30, 2018. As of June 30, 2018, there were five eligible employees participating in the plan. The plan is administered by Innes Associates LTD. As of June 30, 2018, the plan’s assets consisted of the following: Investments $491,423 The plan has never had an actuarial valuation; however, benefits cannot exceed plan assets. The market values of mutual funds are determined from readily available market quotations. The fund uses the accrual basis of accounting. Contributions are recognized when earned; benefits and refunds are expensed when incurred. Separate audited financial statements of this employee benefit plan are not available. Page 88 NOTE 14 EXCESS OF EXPENDITURES OVER APPROPRIATIONS At year end, the City had expenditures in several funds that exceeded the budgets; however, this does not constitute a violation of any legal provisions. NOTE 15 FUND BALANCE CLASSIFICATIONS General Fund Fund Balances (deficits): Nonspendable: Advances to other funds Inventory Prepaid items Restricted: Capital projects Charter mandates Court Law enforcement Debt service Development impact fees Transit Community facilities districts operations Committed: Ball park Assigned: IT replacement Fleet replacement Risk management Parks management Police asset reserve Fire asset reserve Traffic signal reserve Unassigned Total fund balances Page 89 $ McDowell Road Community Commercial Facilities Corridor ID Districts Non-Major Total Debt Service Debt Service Governmental Governmental Fund Fund Funds Funds 1,045,531 $ $ $ $ 553,663 758,946 21,876,083 778,715 19,453,023 35,863 21,876,083 4,377,576 238,965 432,662 5,576,920 19,453,023 1,100,615 2,442,864 2,442,864 1,963,850 1,963,850 4,377,576 238,965 432,662 89,396 1,064,752 1,956,201 4,504,416 888,212 3,033,620 134,146 454,872 74,699 60,552,115 $ 79,516,713 $ 89,396 4,708,809 1,045,531 553,663 758,946 1,956,201 4,504,416 888,212 3,033,620 134,146 454,872 74,699 (22,755) 60,529,360 $4,708,809 $ 47,081,306 $ 131,396,224 NOTE 16 COMMITMENTS The City has active construction projects as of June 30, 2018. The balances for work not yet complete as of June 30, 2018 were as follows: General Fund: Mosaic Mural Community Park AT1803 City Hall Renovations FA1801 3 Fire Trucks 25% remaining Pickleball Courts PK1805 Van Buren: Estrella to Sarival ST1608 Pump Station - Rio Paseo 86 Acre Rec Campus Harrison St ST1802 Highway User Revenue Fund: Roadway to Sonoran Valley ST0805 Non-Major Governmental Funds: Non Utility DI Fees - EMR Fire Station FD1801 Non Utility DI Fees - 30 Acre Recreation Campus PK1705 Non Utility DI Fees - Recreation Center PK1803 GO Bonds Capital Projects - Fire Station 181 New FD1802 GO Bonds Capital Projects - Aquatic Facility PK1802 Water & Wastewater Fund: Site 12 Booster 9 WA1502 Adaman Well & Treatment WA1510 Site #12 Water Main/Improvements WA1802 GWRF 2 MGD Expansion Design WW1302 GWRF Expansion 4 to 5 MGD WW1605 GY WRF Solids Centrifuge WW1702 GYWRF Solids Facility WW1703 Aerobic Digester WW1704 Litchfield 12" Line WW1705 Perryville Grinder Station WW1709 Wells Fargo Lift Station WW1718 LS3 PV Lift Station Rehab WW1802 Total commitments $ 10,000 6,953 472,045 120,262 13,423 21,969 27,890 672,542 5,443 5,443 389,482 111,992 2,025 490,463 3,591 997,553 9,800 207,181 1,280,253 139,096 14,503,629 289,305 140,170 111,640 42,546 93,023 342,113 89,784 17,248,541 $ 18,924,079 These commitments are being financed from existing fund balances. NOTE 17 TAX ABATEMENT AGREEMENTS GPLET The City enters into government property lease agreements with private parties. All property taxes are abated on these lease agreements; however, the private party may be subject to a government property lease excise tax (GPLET) in lieu of property taxes. GPLET is calculated based on rates state statute establishes on the property’s square footage and use. The property tax abatement applies to private parties developing and occupying a government property for at least 30 consecutive days. Under the City’s government property lease agreements, private parties are committed to the construction of any improvements and the operation and maintenance of the improvements. The City has no commitments under these agreements other than to abate taxes. For the year ended June 30, 2018, government property lease agreements the City entered into reduced the City tax revenues by $374,260. Page 90 NOTE 17 TAX ABATEMENT AGREEMENTS Foreign Trade Zone The City has a foreign trade zone within its limits. Arizona state law allows for any property within a foreign trade zone to be subject to a reduced property valuation rate of 5% down from 18%. Under the City’s foreign trade zones, business can qualify one of four ways: 1. Developers can construct a zone I-1 site of at least 200,000 square feet in a foreign trade zone. 2. Qualifying manufacturing companies can invest at least $25 million in capital equipment and real property, construct a 75,000 square feet building, employ a minimum of 75 full-time employees with 51% paid 125% of the state median annual wage and paid 75% of employees’ health insurance premiums. 3. Internet fulfillment companies can locate within a designated foreign trade zone building, generate a minimum of $25 million of Arizona end-user sales and invest at least $25 million in capital equipment and real property. 4. Businesses can locate within one of the federally approved Magnet foreign trade zones and comply with the City’s Foreign Trade Zone policy and federal requirements. For the year ended June 30, 2018, properties within the foreign trade zones reduced the City tax revenues by $111,625. Sales Tax Abatements The City has entered into agreements with developers to reimburse for the construction of public infrastructure that will benefit the community. These reimbursements are paid to developers over time from the collection of sales taxes. Payments to developers are considered during the City's budget process. For the year ended June 30, 2018, the two developer agreements reduced City sales tax revenues by $1,857,451 and $49,857, respectively. Page 91 Page 92 REQUIRED SUPPLEMENTARY INFORMATION Page 93 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Final Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment earnings Contributions Miscellaneous Total revenues Expenditures: General Government City attorney City clerk City manager Engineering Finance Human resources ITS Mayor and council Non-departmental Reserved for contingency Public Safety: Fire Municipal court Police Public Works: Administration Building services Program Management Culture and recreation: Parks Recreation and aquatics Development Services: Development services Economic development Engineering Capital outlay Debt service: Principal retirement Interest and debt cost Total expenditures $ 61,669,100 6,821,300 20,033,400 2,243,400 739,700 291,200 502,500 606,200 92,906,800 $ 61,669,100 6,821,300 20,033,400 2,243,400 739,700 291,200 502,500 606,200 92,906,800 Variance with Final Budget Positive (Negative) Actual $ 66,635,237 10,634,433 19,967,694 2,864,099 947,913 846,534 2,378,647 2,404,417 106,678,974 $ 4,966,137 3,813,133 (65,706) 620,699 208,213 555,334 1,876,147 1,798,217 13,772,174 1,584,200 739,500 4,786,500 3,999,200 3,250,200 6,471,400 329,700 8,249,800 17,800,000 1,584,200 739,500 4,933,000 3,999,200 3,250,200 5,660,100 329,700 7,813,100 17,800,000 1,340,147 673,360 4,480,576 20,118 3,208,456 2,047,343 4,769,181 226,421 3,189,956 - 244,053 66,140 452,424 (20,118) 790,744 1,202,857 890,919 103,279 4,623,144 17,800,000 18,690,900 1,126,400 22,520,600 18,796,000 1,139,644 22,431,600 16,228,635 1,070,309 21,887,477 2,567,365 69,335 544,123 501,800 2,362,300 296,900 501,800 2,431,200 314,900 470,943 2,257,293 169,480 30,857 173,907 145,420 5,746,100 1,764,600 5,746,400 1,772,700 5,326,839 1,658,242 419,561 114,458 3,109,800 1,136,200 4,249,700 26,404,600 3,105,600 1,188,600 4,045,200 26,740,200 2,814,596 938,811 3,406,360 14,493,302 291,004 249,789 638,840 12,246,898 1,235,600 195,800 136,551,800 1,235,600 195,800 135,754,244 1,235,603 195,150 92,108,598 (3) 650 43,645,646 Excess (deficiency) of revenues over expenditures (43,645,000) (42,847,444) 14,570,376 57,417,820 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 3,700,000 (17,977,300) (14,277,300) 3,700,000 (17,977,300) (14,277,300) 4,389,411 (9,686,180) (5,296,769) 689,411 8,291,120 8,980,531 Changes in fund balances (57,922,300) (57,124,744) 9,273,607 66,398,351 68,506,727 68,506,727 Fund balances, beginning of year Fund balances (deficits), end of year Page 94 $ (57,922,300) $ (57,124,744) See accompanying notes to this schedule. $ 77,780,334 $ 134,905,078 CITY OF GOODYEAR, ARIZONA SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ARIZONA STATE RETIREMENT SYSTEM LAST FOUR FISCAL YEARS 2018 2017 2016 2015 2014 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 0 City's proportion of the net pension liability (asset) 0.24% 0.24% 0.24% 0.22% City's proportionate share of the net pension liability (asset) $ 37,471,443 $ 39,085,443 $ 36,986,742 $ 33,264,817 $ City's covered payroll $ 23,806,419 $ 22,599,315 $ 21,761,494 $ 20,166,796 $ City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 157.40% 172.95% 169.96% 164.95% Plan fiduciary net position as a percentage of the total pension liability 69.92% 67.06% 68.35% 69.49% Measurement date 0.00% #DIV/0! 0.00% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 95 CITY OF GOODYEAR, ARIZONA SCHEDULE OF CONTRIBUTIONS ALL PENSION PLANS LAST FOUR FISCAL YEARS 2018 Arizona State Retirement System: Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution 2,760,437 2017 $ 2,760,437 2,566,332 2016 $ 2,566,332 2,452,025 2015 $ 2,452,025 2,369,823 2014 $ 2,369,823 Contribution deficiency (excess) $ $ $ $ $ City's covered payroll $ 25,325,110 $ 23,806,419 $ 22,599,315 $ 21,761,494 $ 10.90% 10.78% 10.85% 10.89% Contributions as a percentage of covered payroll Public Safety Personnel Retirement System - Police: Actuarially determined contribution $ 2,648,244 Contributions in relation to the actuarially determined contribution 2,648,244 Contribution deficiency (excess) $ City's covered payroll $ Contributions as a percentage of covered payroll 8,946,770 $ $ City's covered-employee payroll $ 8,371,037 $ 1,191,487 24.18% $ $ $ 7,519,412 1,133,359 $ $ $ 6,957,993 $ 968,539 14.37% 13.45% $ #DIV/0! $ 968,539 $ 8,426,461 $ 16.87% 1,133,359 $ 8,291,489 1,173,949 1,173,949 21.25% 1,191,487 $ $ 1,597,875 $ $ 8,639,103 1,597,875 21.40% 2,088,935 Contribution deficiency (excess) $ 1,791,402 29.60% Contributions in relation to the actuarially determined contribution 1,791,402 $ Public Safety Personnel Retirement System - Fire: Actuarially determined contribution $ 2,088,935 Contributions as a percentage of covered-employee payroll $ #DIV/0! $ $ 7,674,635 12.62% $ #DIV/0! NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 96 CITY OF GOODYEAR, ARIZONA SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - POLICE LAST FOUR FISCAL YEARS Measurement date Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending 2018 2017 2016 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 $ $ $ $ 1,914,605 2,971,515 456,529 494,534 824,808 1,437,416 2,477,882 3,357,342 389,465 1,580,891 1,278,133 2,301,498 (159,382) 1,278,071 1,966,048 186,683 260,090 1,746,183 (1,454,686) 5,207,305 39,390,239 $ 44,597,544 (1,398,856) 7,844,140 31,546,099 $ 39,390,239 (1,107,068) 2,313,181 29,232,918 $ 31,546,099 (1,220,650) 4,216,425 25,016,493 $ 29,232,918 $ $ $ $ Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending (1,454,686) (25,267) 333,337 4,227,727 22,545,318 $ 26,773,045 (1,398,856) (19,137) 167,861 1,363,084 21,182,234 $ 22,545,318 (1,107,068) (18,421) (57,781) 1,498,690 19,683,544 $ 21,182,234 (1,220,650) (18,769) 31,204 2,942,890 16,740,654 $ 19,683,544 Net pension liability—ending $ 17,824,499 $ 16,844,921 $ 10,363,865 $ 60.03% 57.24% 67.15% Plan fiduciary net position as a percentage of the total pension liability Covered payroll $ Net pension liability as a percentage of covered payroll 1,633,633 930,370 2,810,340 8,371,037 212.93% $ 1,597,875 885,129 130,212 7,519,412 224.02% $ 1,173,950 768,858 739,152 6,957,993 148.95% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 97 1,116,495 704,171 2,330,439 9,549,374 67.33% $ 6,630,426 144.02% CITY OF GOODYEAR, ARIZONA SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - FIRE LAST FOUR FISCAL YEARS Measurement date Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending 2018 2017 2016 2015 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 $ 1,819,328 2,846,014 208,024 (389,024) 222,373 $ $ $ (570,665) 4,136,050 37,322,527 41,458,577 (385,270) 10,888,745 26,433,782 $ 37,322,527 (680,367) 3,582,371 22,851,411 $ 26,433,782 (341,865) 2,491,075 20,360,336 $ 22,851,411 1,153,600 1,109,821 3,112,669 $ $ $ $ (570,665) (27,942) 301 4,777,784 25,113,395 29,891,179 (385,270) (20,803) 278,213 2,180,124 22,933,271 $ 25,113,395 (680,367) (19,707) 304,136 2,212,551 20,720,720 $ 22,933,271 (341,865) (19,278) 137,157 3,872,684 16,848,036 $ 20,720,720 $ 11,567,398 $ 12,209,132 $ $ 72.10% 67.29% $ $ Net pension liability—ending Plan fiduciary net position as a percentage of the total pension liability Covered payroll $ Net pension liability as a percentage of covered payroll 8,291,489 139.51% $ 1,558,056 2,121,084 4,046,976 1,915,498 1,632,401 1,173,975 992,221 141,788 8,426,461 144.89% 1,409,380 1,822,450 1,030,908 968,726 848,048 791,715 3,500,511 86.76% $ 7,674,635 45.61% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 98 1,405,013 1,640,015 (18,156) (813,497) 619,565 948,481 754,465 2,393,724 2,130,691 90.68% $ 7,338,828 29.03% CITY OF GOODYEAR, ARIZONA SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - HEALTH INSURANCE PREMIUM JUNE 30, 2018 Measurement date 2018 2017 2016 2015 2014 June 30, 2017 0 0 0 0 0.00% 0.00% 0.00% 0.00% City's proportion of the net OPEB (assets) liability 0.24% City's proportionate share of the net OPEB (assets) liability $ (132,414) $ $ $ $ City's covered payroll $ 23,806,419 $ $ $ $ City's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll -0.56% Plan fiduciary net position as a percentage of the total OPEB liability 103.57% #DIV/0! #DIV/0! 0.00% #DIV/0! 0.00% #DIV/0! 0.00% 0.00% City's covered payroll Measurement date City's proportion of the net OPEB (assets) liability 2013 2012 2011 2010 2009 0 0 0 0 0 0.00% 0.00% 0.00% 0.00% 0.00% City's proportionate share of the net OPEB (assets) liability $ $ $ $ $ City's covered payroll $ $ $ $ $ City's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability #DIV/0! 0.00% #DIV/0! #DIV/0! 0.00% 0.00% #DIV/0! 0.00% #DIV/0! 0.00% NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 99 CITY OF GOODYEAR, ARIZONA SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - LONG-TERM DISABILITY JUNE 30, 2018 Measurement date 2018 2017 2016 2015 2014 June 30, 2017 0 0 0 0 0.00% 0.00% 0.00% 0.00% City's proportion of the net OPEB (assets) liability 0.24% City's proportionate share of the net OPEB (assets) liability $ (6,734) $ $ $ $ City's covered payroll $ 23,806,419 $ $ $ $ City's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll -0.03% Plan fiduciary net position as a percentage of the total OPEB liability 84.44% Measurement date City's proportion of the net OPEB (assets) liability #DIV/0! #DIV/0! 0.00% #DIV/0! 0.00% #DIV/0! 0.00% 0.00% 2013 2012 2011 2010 2009 0 0 0 0 0 0.00% 0.00% 0.00% 0.00% 0.00% City's proportionate share of the net OPEB (assets) liability $ $ $ $ $ City's covered payroll $ $ $ $ $ City's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total OPEB liability #DIV/0! 0.00% #DIV/0! #DIV/0! 0.00% 0.00% #DIV/0! 0.00% #DIV/0! 0.00% NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 100 CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPEB CONTRIBUTIONS ALL OPEB PLANS JUNE 30, 2018 2018 2017 Arizona State Retirement System - Health Insurance Premium: Actuarially determined contribution $ 143,399 $ Contributions in relation to the actuarially determined contribution 143,399 $ $ Contribution deficiency (excess) $ $ $ $ City's covered payroll Contributions as a percentage of covered payroll $ $ $ $ 25,325,110 0.57% #DIV/0! Arizona State Retirement System - Long-Term Disability: Actuarially determined contribution $ 40,972 $ Contributions in relation to the actuarially determined contribution 40,972 Contribution deficiency (excess) $ City's covered payroll Contributions as a percentage of covered payroll $ 2016 $ #DIV/0! $ City's covered payroll Contributions as a percentage of covered payroll $ $ $ $ 25,325,110 #N/A #N/A #N/A 0.16% #N/A #N/A #N/A 8,946,770 $ $ $ $ $ #DIV/0! #DIV/0! Public Safety Personnel Retirement System - Fire - Health Insurance Premium: Actuarially determined contribution $ 33,693 $ $ Contributions in relation to the actuarially determined contribution 33,693 $ City's covered payroll Contributions as a percentage of covered payroll $ $ $ 0.33% Contribution deficiency (excess) #DIV/0! $ Public Safety Personnel Retirement System - Police - Health Insurance Premium: Actuarially determined contribution $ 29,524 $ $ Contributions in relation to the actuarially determined contribution 29,524 Contribution deficiency (excess) 2015 $ #DIV/0! $ $ $ 8,639,103 #N/A #N/A #N/A 0.39% #N/A #N/A #N/A NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 101 CITY OF GOODYEAR, ARIZONA SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - POLICE - HEALTH INSURANCE PREMIUM JUNE 30, 2018 Measurement date Total OPEB liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability—beginning Total OPEB liability—ending 2018 2017 2016 2015 June 30, 2017 0 0 0 $ Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending Net OPEB (assets) liability—ending $ $ $ $ 4,452 (66,210) (17,372) 9,635 761,355 770,990 $ $ $ $ 30,113 $ $ $ $ 99,526 737,009 836,535 $ $ $ $ (65,545) $ $ $ 87,559 (17,372) (774) Plan fiduciary net position as a percentage of the total OPEB liability 108.50% $ Covered payroll Net OPEB (assets) liability as a percentage of covered payroll 27,494 57,481 3,790 8,371,037 -0.78% #DIV/0! $ #DIV/0! $ #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 102 CITY OF GOODYEAR, ARIZONA SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - FIRE - HEALTH INSURANCE PREMIUM JUNE 30, 2018 Measurement date Total OPEB liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability—beginning Total OPEB liability—ending 2018 2017 2016 2015 June 30, 2017 0 0 0 $ Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending 20,875 58,459 375 $ $ $ $ 21,035 (94,084) (7,230) (570) 772,637 772,067 $ $ $ $ 31,049 $ $ $ $ 90,199 558,694 648,893 $ $ $ $ 123,174 $ $ $ 66,973 (7,230) (593) Net OPEB (assets) liability—ending Plan fiduciary net position as a percentage of the total OPEB liability 84.05% $ Covered payroll Net OPEB (assets) liability as a percentage of covered payroll 8,291,489 1.49% #DIV/0! $ #DIV/0! $ #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available. See accompanying notes to this schedule. Page 103 NOTE 1 BUDGETARY BASIS OF ACCOUNTING The City budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the following item:  Certain activities reported in the General Fund are budgeted in separate funds. The following schedule reconciles fund balance reported at the end of the year: Beginning Fund Balance Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Activity budgeted as special revenue funds Activity budgeted as capital projects funds Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund Expenditures Ending Fund Balance $ 70,352,342 $107,069,770 (1,537,209) (390,796) (308,406) $ 92,300,224 (191,626) $ 79,516,713 (1,736,379) $ 68,506,727 $106,678,974 $ 92,108,598 $ 77,780,334 Revenue NOTE 2 PENSION PLAN SCHEDULES Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements. Factors that Affect Trends. The actuarial assumptions used in the June 30, 2016, valuation for ASRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return. The actuarial assumptions used in the June 30, 2017, valuation for PSPRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. The total pension liability used to calculate the net pension liability for PSPRS was determined by an actuarial valuation as of that date. Page 104 OTHER SUPPLEMENTARY INFORMATION Page 105 Page 106 NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds  Highway User Revenue Fund (HURF) – Funded through fuel taxes distributed from the State of Arizona.  Community Facilities Districts – CFDs represent special districts formed for the purpose of financing the acquisition, construction, operation, and maintenance of the public infrastructure benefitting the community.  Grants Fund – Based on application to granting agencies by the City and availability of funding by grantors.  Ball Park Fund – Used to account for the activities of the City’s ball park operations. Debt Service Fund This fund was established for the accumulation of resources and the servicing of long-term debt not being financed by the proprietary funds. Revenues are generated from the property tax levy sufficient to meet the debt service requirements. Non-Utility Development Impact Fees Fund This fund accounts for the receipt and expenditure of development impact or expansion fees for all governmental activities. GO Bonds Capital Projects This fund accounts for the proceeds and interest of the sale of voter-approved general obligation bonds that are used for authorized capital improvements. Page 107 CITY OF GOODYEAR, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2018 Special Revenue ASSETS Cash and cash equivalents Investments Taxes receivable Interest receivable Accounts receivable Due from other governments Inventories Restricted cash and cash equivalents Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued payroll and employee benefits Accrued interest payable Deposits Due to other funds Unearned revenue Bonds payable Advances from other funds Total liabilities Highway User Revenue Community Facilities Districts $ $ 682,790 82,164 2,603 4,415 463,114 553,663 108,726 $ 1,016,777 $ $ 132,639 58,120 $ 171,146 37,818 3,271,792 $ 876,283 $ 21,736 818,680 807,501 86,146 485,869 818,680 829,237 10,248 Fund balances (deficits): Nonspendable Restricted Committed Unassigned Total fund balances Page 108 $ 19,912 Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - intergovernmental Total deferred inflows of resources Total liabilities, deferred inflows of resources and fund balances 3,247,465 Grants 10,248 11,183 11,183 2,442,864 35,863 2,442,864 35,863 553,663 (22,755) 530,908 $ 1,016,777 $ 3,271,792 $ 876,283 Special Revenue Debt Service Ball Park Fund $ 1,144,556 931,967 Debt Service $ 109,725 1,370,000 79,254 Capital Projects Non-Utility Development Impact Fees GO Bonds Capital Projects Total Non-Major Governmental Funds $ $ $ 3,905 62,277 14,658,158 6,624,950 27,362 85,906 21,701,854 98,146 $ 2,142,705 $ 4,532,245 6,091,224 $ 21,310,470 $ 21,885,906 $ $ 46,853 71,543 $ 135 $ 166,680 $ 9,823 $ 2,167,245 60,324 731,382 135 727,000 2,365,000 178,855 5,259,380 959,385 1,857,447 9,823 53,129 778,715 19,453,023 21,876,083 778,715 19,453,023 21,876,083 553,663 44,586,548 1,963,850 (22,755) 47,081,306 1,963,850 $ 2,142,705 Page 109 $ 6,091,224 377,866 129,663 2,167,245 962,852 856,498 1,534,636 2,365,000 1,045,531 9,439,291 63,377 11,183 74,560 53,129 1,963,850 19,928,600 30,710,935 99,166 132,016 66,692 571,840 553,663 4,532,245 56,595,157 $ 21,310,470 $ 21,885,906 $ 56,595,157 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 Special Revenue Revenues: Taxes Licenses and permits Intergovernmental Charges for services Investment income Contributions Miscellaneous Total revenues Highway User Revenue Community Facilities Districts $ $ Expenditures: Current General government Public safety Highways and streets Culture and recreation Capital outlay Debt service Principal retirement Interest and debt cost Bond issuance costs Total expenditures 1,354,851 Grants $ 2,235 5,042,068 81,727 36,578 32,105 3,567 461 5,163,069 79,383 1,466,339 1,767,129 1,763,562 870,338 Excess (deficiency) of revenues over expenditures 5,206,460 400,967 310,714 39,460 913,856 5,245,920 870,338 1,625,537 (82,851) 596,001 141,592 Other financing sources (uses): Bond issuance Refunding bonds premium Transfer in Transfer out Total other financing sources (uses) 43,325 Changes in fund balances (39,526) 596,001 141,592 Fund balances (deficits), beginning of year 570,434 1,846,863 (105,729) Fund balances, end of year Page 110 43,325 $ 530,908 $ 2,442,864 $ 35,863 Special Revenue Debt Service Ball Park Fund $ Debt Service $ 2,544,493 16,026 4,537,848 Capital Projects Non-Utility Development Impact Fees GO Bonds Capital Projects Total Non-Major Governmental Funds $ $ $ 5,509,452 4,330,639 10,476,623 1,304,717 3,138,917 870,338 400,967 5,517,174 4,330,639 15,873,573 142,500 14,949,762 6,750,970 5,980,901 232,397 12,964,268 1,304,717 3,138,917 6,750,970 5,980,901 374,897 40,099,459 (12,387,836) (7,454,816) 7,405,887 (3,138,917) (14,920,940) 25,015,000 7,529,974 11,663 (392,668) (381,005) 25,015,000 25,015,000 722,171 9,808,761 (503,586) 35,042,346 (9,552,784) 75,158 7,024,882 21,876,083 20,121,406 11,516,634 703,557 12,428,141 722,171 6,807,803 2,945,970 (110,918) 2,835,052 $ 8,710,604 9,830,507 2,235 6,805,630 7,275,140 215,838 967,918 81,251 25,178,519 4,648,920 123,876 3,686 967,918 1,407 2,561,926 3,937,808 1,963,850 Page 111 $ 778,715 $ 19,453,023 26,959,900 $ 21,876,083 $ 47,081,306 Page 112 INTERNAL SERVICE FUNDS Page 113 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF NET POSITION ALL INTERNAL SERVICE FUNDS JUNE 30, 2018 Self-Insurance Trust ASSETS Current assets: Cash and cash equivalents Inventories Total current assets Total assets $ Page 114 $ 2,907,215 2,907,215 LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Claims payable Due to other funds Total current liabilities Total liabilities NET POSITION Unrestricted Total net position 2,907,215 Fleet Service 43,760 22,679 261,190 283,869 283,869 Totals $ 22,529 25,912 66,289 25,912 479,747 235,368 807,316 807,316 479,747 235,368 283,809 283,809 523,507 523,507 $ 2,383,708 2,383,708 $ 60 60 2,929,894 261,190 3,191,084 3,191,084 $ 2,383,768 2,383,768 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ALL INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2018 Self-Insurance Trust Operating revenues: Charges for services Self insurance premiums Miscellaneous Total operating revenues $ Fleet Service $ 8,751,282 669,127 9,420,409 Operating expenses: Administration Claims expense Costs of sales and services Total operating expenses Nonoperating revenues (expenses): Investment income Total nonoperating revenues (expenses) $ 5,205 1,947,925 621,679 6,428,728 Operating income (loss) 1,942,720 Totals 50,861 7,050,407 1,897,004 1,947,865 672,540 6,428,728 1,897,004 8,998,272 2,370,002 60 2,370,062 13,706 13,706 13,706 13,706 2,383,708 Changes in net position 1,942,720 8,751,282 674,332 11,368,334 60 2,383,768 Total net position, beginning of year Total net position, end of year Page 115 $ 2,383,708 $ 60 $ 2,383,768 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2018 Self-Insurance Trust Fleet Service Totals Increase/Decrease in Cash and Cash Equivalents Cash flows from operating activities: Cash received from contributions Cash payments to suppliers for goods and services Cash payments to employees Cash payments for claims $ 9,420,409 (577,919) $ $ (5,948,981) Net cash provided by/used for operating activities 2,893,509 Cash flows from investing activities: Investment income Net cash provided by/used for investing activities 16,465 13,706 13,706 2,907,215 Cash and cash equivalents, beginning of year $ 2,909,974 13,706 Net cash provided by noncapital financing activities Net increase/decrease in cash and cash equivalents 11,368,334 (2,451,720) (57,659) (5,948,981) 13,706 Cash flows from noncapital financing activities: Due from (to) other funds Cash and cash equivalents, end of year 1,947,925 (1,873,801) (57,659) 2,907,215 $ 6,064 6,064 6,064 6,064 22,529 2,929,744 150 150 22,679 $ 2,929,894 $ 2,370,062 Reconciliation of Operating Income/Loss to Net Cash Provided by/Used for Operating Activities Operating income/loss $ Adjustments to reconcile operating income/loss to net cash used for operating activities: Increase/decrease in inventories Increase/decrease in accounts payable Increase/decrease in accrued payroll and benefits Increase/decrease in claims payable Page 116 $ 43,760 60 11,759 11,444 (6,798) 11,759 55,204 (6,798) 479,747 16,405 539,912 479,747 Total adjustments Net cash provided by/used for operating activities 2,370,002 523,507 $ 2,893,509 $ 16,465 $ 2,909,974 AGENCY FUNDS     G.A.I.N Fill-A-Need Shop With a Cop Arizona in Action Page 117 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2018 Fill-A-Need GAIN Shop With A Cop ASSETS Cash and cash equivalents Total assets $ $ 8,679 8,679 $ $ 2,901 2,901 $ $ 22,798 22,798 LIABILITIES Deposits held for others Total liabilities $ $ 8,679 8,679 $ $ 2,901 2,901 $ $ 22,798 22,798 Page 118 Arizona in Action Totals $ $ 3,230 3,230 $ $ 37,608 37,608 $ $ 3,230 3,230 $ $ 37,608 37,608 Page 119 CITY OF GOODYEAR, ARIZONA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS YEAR ENDED JUNE 30, 2018 Beginning Balance Additions Ending Balance Deductions GAIN Assets Cash and investments $ 8,679 $ - $ - $ 8,679 Liabilities Deposits held for others $ 8,679 $ - $ - $ 8,679 Assets Cash and investments $ 5,402 $ 8,761 $ 11,262 $ 2,901 Liabilities Deposits held for others $ 5,402 $ 8,761 $ 11,262 $ 2,901 Assets Cash and investments $ 18,018 $ 10,200 $ 5,420 $ 22,798 Liabilities Deposits held for others $ 18,018 $ 10,200 $ 5,420 $ 22,798 Assets Cash and investments $ 3,230 $ - $ - $ 3,230 Liabilities Deposits held for others $ 3,230 $ - $ - $ 3,230 Assets Cash and investments $ 35,329 $ 18,961 $ 16,682 $ 37,608 Liabilities Deposits held for others $ 35,329 $ 18,961 $ 16,682 $ 37,608 FILL-A-NEED SHOP WITH A COP ARIZONA IN ACTION TOTAL AGENCY FUNDS Page 120 BUDGETARY COMPARISON SCHEDULES OTHER MAJOR GOVERNMENTAL FUNDS Page 121 Page 122 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MCDOWELL ROAD COMMERCIAL CORRIDOR ID DEBT SERVICE YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Investment income Special assessments Total revenues $ Expenditures: Debt service Principal retirement Interest and debt cost Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Final $ Actual $ 3,534,200 3,534,200 3,534,200 3,534,200 1,312 3,537,643 3,538,955 1,660,000 1,875,200 3,535,200 1,660,000 1,875,200 30,756 3,565,956 1,660,000 1,893,807 490,945 4,044,752 (18,607) (460,189) (478,796) (1,000) (31,756) (505,797) (474,041) 36,222,010 (35,731,065) 490,945 36,222,010 (35,731,065) 490,945 (14,852) 16,904 104,248 104,248 Other financing sources (uses): Refunding bonds issued Payment to refunded bond escrow agent Total other financing sources (uses) (1,000) Changes in fund balances (31,756) Fund balances, beginning of year Fund balances (deficits), end of year Page 123 $ Variance with Final Budget Positive (Negative) (1,000) $ (31,756) $ 89,396 $ $ 1,312 3,443 4,755 121,152 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY FACILITIES DISTRICTS DEBT SERVICE YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original & Final Revenues: Taxes Investment income Special assessments Contributions Total revenues $ Expenditures: Debt service Principal retirement Interest and debt cost Bond issuance costs Payment to refunded bond escrow agent Total expenditures 6,128,896 22,400 4,569,974 650,000 11,371,270 Actual $ 10,670,000 6,661,833 Excess (deficiency) of revenues over expenditures 17,331,833 (5,960,563) (9,692,977) (3,732,414) 15,315,617 (13,325,637) 1,989,980 15,315,617 (13,325,637) 1,989,980 (7,702,997) (1,742,434) 12,411,806 12,411,806 (5,960,563) Page 124 $ 7,807 95,685 (2,138,819) 2,361,437 326,110 674,000 506,271 (616,739) (4,622,056) (4,058,524) Fund balances, beginning of year Fund balances (deficits), end of year $ 9,996,000 6,155,562 616,739 4,622,056 21,390,357 Other financing sources (uses): Refunding bonds issued Payment to refunded bond escrow agent Total other financing sources (uses) Changes in fund balances 6,136,703 118,085 2,431,155 3,011,437 11,697,380 Variance with Final Budget Positive (Negative) (5,960,563) $ 4,708,809 $ 10,669,372 BUDGETARY COMPARISON SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS Page 125 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL IMPOUND YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Charges for services Investment income Total revenues 140,000 140,000 Expenditures: Current Public safety Capital outlay Total expenditures 182,400 Changes in fund balances Page 126 $ 38,800 3,288 42,088 182,400 163,985 8 163,993 18,415 (8) 18,407 (42,400) 18,095 60,495 284,699 284,699 Fund balances, beginning of year Fund balances (deficits), end of year 178,800 3,288 182,088 (42,400) $ 302,794 $ 345,194 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HIGHWAY USER REVENUE YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Licenses and permits Intergovernmental Charges for services Investment income Miscellaneous Total revenues $ Expenditures: Current Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Total other financing sources (uses) 1,000 5,113,900 15,000 1,500 Final $ 5,131,400 5,131,400 2,235 5,042,068 81,727 36,578 461 5,163,069 5,517,700 50,000 5,567,700 5,418,400 50,000 5,468,400 5,206,460 39,460 5,245,920 211,940 10,540 222,480 (436,300) (337,000) (82,851) 254,149 436,300 436,300 436,300 436,300 43,325 43,325 (392,975) (392,975) 99,300 (39,526) (138,826) 570,434 570,434 Changes in fund balances 1,000 5,113,900 15,000 1,500 Actual $ Fund balances, beginning of year Fund balances, end of year Page 127 $ Variance with Final Budget Positive (Negative) $ 99,300 $ 530,908 $ $ 1,235 (71,832) 66,727 35,078 461 31,669 431,608 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PARK AND RIDE MARQUEE YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Charges for services Investment income Total revenues Changes in fund balances 100,500 100,500 100,500 12,013 112,513 100,500 112,513 12,013 952,239 952,239 Fund balances, beginning of year Fund balances, end of year Page 128 $ 100,500 $ 1,064,752 12,013 12,013 $ 964,252 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COURT ENHANCEMENT YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Fines and forfeits Investment income Total revenues 42,000 42,000 Expenditures: Current Public safety Total expenditures 100,200 100,200 Changes in fund balances (58,200) Page 129 $ (58,200) 7,508 103 7,611 100,200 100,200 Fund balances, beginning of year Fund balances (deficits), end of year 49,508 103 49,611 $ 49,611 107,811 98,968 98,968 148,579 $ 206,779 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL JCEF YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Fines and forfeits Investment income Total revenues 13,000 13,000 16,489 (297) 16,192 Expenditures: Current Public safety Total expenditures 60,000 60,000 27,633 27,633 32,367 32,367 Changes in fund balances (47,000) (11,441) 35,559 101,827 101,827 Fund balances, beginning of year Fund balances (deficits), end of year Page 130 $ (47,000) $ 90,386 $ 3,489 (297) 3,192 137,386 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FILL THE GAP YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Fines and forfeits Investment income Total revenues 7,500 7,500 Expenditures: Current Public safety Total expenditures 9,000 9,000 Changes in fund balances (1,500) Page 131 $ (1,500) 103 (20) 83 9,000 9,000 Fund balances, beginning of year Fund balances (deficits), end of year 7,603 (20) 7,583 $ 7,583 9,083 95,349 95,349 102,932 $ 104,432 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OFFICER SAFETY EQUIPMENT YEAR ENDED JUNE 30, 2018 Original & Final Non-GAAP Actual Variance with Final Budget Positive (Negative) $ $ $ Budgeted Amounts Revenues: Fines and forfeits Investment income Miscellaneous Total revenues Changes in fund balances 13,000 13,000 22,804 1 4 22,809 13,000 22,809 9,809 4,127 4,127 Fund balances, beginning of year Fund balances, end of year Page 132 $ 13,000 $ 26,936 $ 9,804 1 4 9,809 13,936 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY FACILITIES DISTRICTS YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original & Final Revenues: Taxes Investment income Miscellaneous Total revenues $ 1,350,918 11,300 90,000 1,452,218 Actual $ 1,354,851 32,105 79,383 1,466,339 Variance with Final Budget Positive (Negative) $ 3,933 20,805 (10,617) 14,121 Expenditures: Current General government Total expenditures 1,160,500 1,160,500 870,338 870,338 290,162 290,162 Changes in fund balances 291,718 596,001 304,283 1,846,863 1,846,863 Fund balances, beginning of year Fund balances, end of year Page 133 $ 291,718 $ 2,442,864 $ 2,151,146 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GRANTS YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Intergovernmental Investment income Total revenues $ 1,097,000 Final $ 1,097,000 Actual $ Variance with Final Budget Positive (Negative) 1,097,000 1,097,000 1,763,562 3,567 1,767,129 Expenditures: Current Public safety Highways and streets Capital outlay Total expenditures 89,000 174,200 902,000 1,165,200 554,640 327,900 922,700 1,805,240 400,967 310,714 913,856 1,625,537 153,673 17,186 8,844 179,703 Changes in fund balances (68,200) (708,240) 141,592 849,832 (105,729) (105,729) Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 134 $ (68,200) $ (708,240) $ 35,863 $ $ 666,562 3,567 670,129 744,103 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL BALL PARK FUND YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Charges for services Investment income Miscellaneous Total revenues $ Expenditures: Current Culture and recreation Capital outlay Debt service Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures 3,208,800 Final $ 3,208,800 Actual $ Variance with Final Budget Positive (Negative) 25,500 3,234,300 25,500 3,234,300 2,544,493 16,026 1,407 2,561,926 $ (664,307) 16,026 (24,093) (672,374) 4,375,600 11,637,900 4,375,600 10,704,600 4,330,639 10,476,623 44,961 227,977 16,013,500 15,080,200 142,500 14,949,762 (142,500) 130,438 (12,779,200) (11,845,900) (12,387,836) (541,936) (7,345,030) (110,918) (7,455,948) Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses) 10,291,000 10,291,000 10,291,000 10,291,000 2,945,970 (110,918) 2,835,052 Changes in fund balances (2,488,200) (1,554,900) (9,552,784) (7,997,884) 11,516,634 11,516,634 Fund balances, beginning of year Fund balances (deficits), end of year Page 135 $ (2,488,200) $ (1,554,900) $ 1,963,850 $ 3,518,750 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Taxes Investment income Contributions Total revenues $ Expenditures: Debt service Principal retirement Interest and debt cost Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures 4,581,800 Final $ 4,581,800 Actual $ 4,581,800 4,581,800 4,537,848 3,686 967,918 5,509,452 7,158,000 5,045,500 12,203,500 8,048,000 4,687,300 233,800 12,969,100 6,750,970 5,980,901 232,397 12,964,268 1,297,030 (1,293,601) 1,403 4,832 (7,621,700) (8,387,300) (7,454,816) 932,484 722,171 6,807,803 7,529,974 722,171 6,807,803 7,529,974 75,158 8,462,458 703,557 703,557 Other financing sources (uses): Refunding bonds premium Transfer in Total other financing sources (uses) (7,621,700) Changes in fund balances (8,387,300) Fund balances, beginning of year Fund balances (deficits), end of year Page 136 $ Variance with Final Budget Positive (Negative) (7,621,700) $ (8,387,300) $ 778,715 $ $ (43,952) 3,686 967,918 927,652 9,166,015 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NON-UTILITY DEVELOPMENT IMPACT FEES YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Revenues: Taxes Charges for services Investment income Total revenues $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 2,173,300 5,262,100 Final $ 2,173,300 5,262,100 Actual $ 7,435,400 7,435,400 3,937,808 4,648,920 123,876 8,710,604 4,200,100 4,200,100 8,737,000 8,737,000 1,304,717 1,304,717 7,432,283 7,432,283 3,235,300 (1,301,600) 7,405,887 8,707,487 11,663 (392,668) (381,005) 11,663 (392,668) (381,005) 7,024,882 8,326,482 12,428,141 12,428,141 Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses) 3,235,300 Changes in fund balances (1,301,600) Fund balances, beginning of year Fund balances (deficits), end of year Page 137 $ Variance with Final Budget Positive (Negative) 3,235,300 $ (1,301,600) $ 19,453,023 $ $ 1,764,508 (613,180) 123,876 1,275,204 20,754,623 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GO BONDS CAPITAL PROJECTS YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Expenditures: Capital outlay Total expenditures $ 12,907,500 12,907,500 Final $ 14,089,100 14,089,100 Actual $ 3,138,917 3,138,917 Variance with Final Budget Positive (Negative) $ 10,950,183 10,950,183 (12,907,500) (14,089,100) (3,138,917) 10,950,183 Other financing sources (uses): Bond issuance Total other financing sources (uses) 25,000,000 25,000,000 25,000,000 25,000,000 25,015,000 25,015,000 15,000 15,000 Changes in fund balances 12,092,500 10,910,900 21,876,083 10,965,183 Excess (deficiency) of revenues over expenditures Fund balances, beginning of year Fund balances, end of year Page 138 $ 12,092,500 $ 10,910,900 $ 21,876,083 $ 10,965,183 CITY OF GOODYEAR, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL IMPROVEMENT PROJECTS YEAR ENDED JUNE 30, 2018 Final Non-GAAP Actual Variance with Final Budget Positive (Negative) 5,870,000 5,870,000 $ $ Budgeted Amounts Original Revenues: Contributions Total revenues $ Expenditures: Capital outlay Total expenditures 5,870,000 5,870,000 $ 4,746,300 4,746,300 1,123,700 Excess (deficiency) of revenues over expenditures 5,870,000 (5,870,000) Other financing sources (uses): Transfer out Total other financing sources (uses) 1,123,700 Changes in fund balances 5,870,000 Fund balances, beginning of year Fund balances, end of year Page 139 (5,870,000) (5,870,000) $ 1,123,700 $ 5,870,000 $ (308,406) (308,406) (308,406) (308,406) (308,406) (6,178,406) 308,406 308,406 $ (5,870,000) CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPERATIONS - BUDGET AND ACTUAL WATER AND WASTEWATER ENTERPRISE FUND YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Final Operating revenues: Charges for services Miscellaneous Total operating revenues $ 33,976,000 125,900 34,101,900 $ 33,976,000 125,900 34,101,900 Variance with Final Budget Positive (Negative) Actual $ 35,203,483 26,574 35,230,057 $ 1,227,483 (99,326) 1,128,157 Operating expenses: Administration Cost of sales and services Depreciation Total operating expenses 43,650,300 22,260,600 65,910,900 70,071,100 21,931,100 92,002,200 4,816,040 8,735,089 7,545,004 21,096,133 65,255,060 13,196,011 (7,545,004) 70,906,067 Operating income (loss) (31,809,000) (57,900,300) 14,133,924 72,034,224 Nonoperating revenues (expenses): Investment income Loss on sale of assets Interest and debt cost Total nonoperating revenues (expenses) 108,400 4,000 (11,928,900) (11,816,500) 108,400 4,000 (12,835,500) (12,723,100) 34,875 (1,723,366) (4,034,295) (5,722,786) (73,525) (1,727,366) 8,801,205 7,000,314 Income before capital contributions and transfers (43,625,500) (70,623,400) 8,411,138 79,034,538 Capital contributions Transfers out 11,493,800 (2,800,000) 11,493,800 (2,800,000) 12,237,823 (2,800,000) 744,023 - Change in net position (34,931,700) (61,929,600) 17,848,961 79,778,561 215,569,336 215,569,336 Net position, beginning of year, as restated Net position, end of year Page 140 $ (34,931,700) $ (61,929,600) $ 233,418,297 $ 295,347,897 CITY OF GOODYEAR, ARIZONA SCHEDULE OF OPERATIONS - BUDGET AND ACTUAL SANITATION ENTERPRISE FUND YEAR ENDED JUNE 30, 2018 Budgeted Amounts Original Final Operating revenues: Charges for services Miscellaneous Total operating revenues $ Operating expenses: Administration Cost of sales and services Depreciation Total operating expenses 7,685,000 6,000 7,691,000 $ Variance with Final Budget Positive (Negative) Actual 7,685,000 6,000 7,691,000 $ 7,812,267 10,450 7,822,717 $ 127,267 4,450 131,717 1,138,700 5,570,000 6,708,700 1,146,400 5,549,300 6,695,700 730,972 5,313,996 161,875 6,206,843 415,428 235,304 (161,875) 488,857 982,300 995,300 1,615,874 620,574 2,000 2,000 2,500 2,500 12,371 12,371 9,871 9,871 Income before transfers 984,300 997,800 1,628,245 630,445 Transfers out (900,000) (900,000) (900,000) 84,300 97,800 728,245 630,445 2,721,696 2,721,696 Operating income (loss) Nonoperating revenues (expenses): Investment income Total nonoperating revenues (expenses) Change in net position Net position, beginning of year, as restated Net position, end of year Page 141 $ 84,300 $ 97,800 $ 3,449,941 $ 3,352,141 Page 142 City of Goodyear Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018 STATISTICAL SECTION STATISTICAL SECTION STATISTICAL SECTION The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below. Financial Trends These schedules contain information on financial trends to help the reader understand how the City’s financial position and financial activities have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City’s ability to generate revenue. Debt Capacity These schedules present information to help the reader evaluate the City’s current levels of outstanding debt as well as assess the City’s ability to make debt payments and/or issue additional debt in the future. Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the City’s financial activities take place and to help make comparisons with other cities. Operating Information These schedules contain information about the City’s operations and various resources to help the reader draw conclusions as to how the City’s financial information relates to the services provided by the City. Due to cost considerations for the accumulation of data, the City has elected to present less than ten years of data, or data from less than nine years prior, for certain statistical schedules. This information will be accumulated and reported each year until the complete ten years of data is presented. Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to five percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits. Page 143 City of Goodyear Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year Governmental Activities Net investment in capital assets Restricted Unrestricted Total Governmental Activities Net Position Business-type Activities Net investment in capital assets Restricted Unrestricted Total Business-type Activities Net Position Primary Government Net investment in capital assets Restricted Unrestricted Total Primary Government Net Position 2009 2010 2011 2012* 2013 $ 309,491,989 117,787,315 20,522,420 447,801,725 $ 317,162,459 115,881,050 19,272,548 452,316,057 $ 327,503,686 110,105,296 18,249,626 455,858,608 $ 329,064,345 108,246,415 20,147,669 457,458,429 $ 333,034,884 99,128,020 35,820,702 467,983,606 199,696,564 191,582,614 (11,409,545) 188,287,019 4,365,725 195,948,339 179,254,929 3,567,237 9,263,439 192,085,605 178,432,900 3,799,026 11,229,680 193,461,606 178,456,590 3,196,131 16,616,254 198,268,975 509,188,553 117,787,315 9,112,875 $ 636,088,744 508,745,073 115,881,050 23,638,273 $ 648,264,396 506,758,615 113,672,533 27,513,065 $ 647,944,213 507,497,245 112,045,441 31,377,349 $ 650,920,035 511,491,474 102,324,151 52,436,956 $ 666,252,581 Notes: *Net position adjusted for adoption of GASB Statement No. 65 **Net position adjusted for adoption of GASB Statement No. 68 Source: Statement of Net Position Page 144 Table 1 Fiscal Year 2014** 2015 2016 2017 2018 $ 345,513,895 85,246,465 9,672,461 440,432,821 $ 365,019,949 92,247,738 5,722,007 462,989,694 $ 361,739,970 92,276,066 19,147,997 473,164,033 $ 379,899,821 90,497,505 16,944,442 487,341,768 $ 381,473,262 87,435,376 29,981,817 498,890,455 177,274,142 5,640,492 9,860,573 192,775,207 176,380,867 7,607,902 14,190,297 198,179,066 180,640,162 18,131,719 7,380,491 206,152,372 181,242,982 21,072,234 15,974,822 218,290,038 199,032,946 13,468,708 24,366,584 236,868,238 522,788,037 90,886,957 19,533,034 $ 633,208,028 541,400,816 99,855,640 19,912,304 $ 661,168,760 542,380,132 110,407,785 26,528,488 $ 679,316,405 561,142,803 111,569,739 32,919,264 $ 705,631,806 580,506,208 100,904,084 54,348,401 $ 735,758,693 Page 145 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2009 2010 2011 2012 2013 Expenses*** Governmental Activities: General government Public safety Community services** Highways and streets Public works Culture and recreation Development services Interest on long-term debt Total Governmental Activities Expenses $ 14,147,399 27,830,608 1,248,219 8,436,341 14,370,096 5,435,750 9,583,326 12,001,714 $ 93,053,453 $ 15,810,359 27,463,658 454,550 12,179,531 11,070,853 4,023,639 2,555,353 11,210,504 $ 84,768,447 $ 17,207,556 28,032,217 $ 18,353,630 25,423,233 $ 17,652,646 27,987,404 14,798,670 3,658,756 4,439,181 5,150,677 10,710,302 $ 83,997,359 13,179,678 4,168,252 4,962,070 6,225,917 10,441,684 $ 82,754,464 14,355,644 3,090,345 5,539,612 7,194,428 10,411,562 $ 86,231,641 Business-type Activities Water and wastewater Sanitation Stadium* Total Business-type Activities Expenses $ 18,655,263 5,090,150 6,475,960 $ 30,221,373 $ 18,124,893 4,782,565 11,547,500 $ 34,454,958 $ 20,733,932 4,815,314 11,958,862 $ 37,508,108 $ 20,654,800 5,154,201 11,634,491 $ 37,443,492 $ 21,912,587 5,246,666 12,204,354 $ 39,363,607 Total Primary Government Expenses $ 123,274,826 $ 119,223,405 $ 121,505,467 $ 120,197,956 $ 125,595,248 Notes: * Stadium Fund did not have operating activity until 2008, and was reclassified to governmental activities in 2017 ** Community Services was reorganized into General Government and Development Services for fiscal year 2011 *** Beginning in fiscal year 2016 expense functions were consolidated to align with the basic financial statements Source: Statement of Activities Page 146 Table 2 Fiscal Year 2014 2015 2016 2017 2018 $ 18,216,169 30,710,193 $ 19,624,056 31,834,683 $ 19,824,313 34,823,588 $ 20,151,975 47,535,184 $ 23,781,937 45,439,446 19,368,539 2,773,348 5,827,309 5,836,254 9,282,269 $ 92,014,081 17,941,162 3,361,822 6,422,764 7,005,308 8,763,353 $ 94,953,148 20,753,487 7,920,958 6,880,654 7,981,904 8,479,284 $ 106,664,188 19,181,162 3,569,658 15,363,752 7,316,935 12,131,284 $ 125,249,950 26,460,464 4,232,567 19,080,188 6,591,111 11,582,014 $ 137,167,727 $ 23,511,395 5,472,534 12,529,987 $ 41,513,916 $ 25,489,522 5,802,163 12,407,494 $ 43,699,179 $ 27,647,487 6,444,459 12,647,134 $ 46,739,080 $ 30,139,626 5,868,228 $ 26,853,794 6,206,843 $ 36,007,854 $ 33,060,637 $ 133,527,997 $ 138,652,327 $ 153,403,268 $ 161,257,804 $ 170,228,364 continued Page 147 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2009 Program Revenue* Governmental Activities: Charges for Services: General government Public safety Highway and streets Culture and recreation Developmental services Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business-type Activities Charges for Services: Water and wastewater Sanitation Stadium* Operating Grants and Contributions Capital Grants and Contributions Total Business-type Activities Revenues Total Primary Government Revenues Net (Expense)/Revenue Governmental Activities Business-type Activities Total Primary Government Net Revenues $ 1,031,722 264,347 2010 $ 1,715,692 657,270 $ 357,039 4,776,076 4,843,140 102,028,190 $ 113,300,514 $ $ 15,269,341 5,625,426 1,014,221 25,000 41,595,562 63,529,550 $ $ 176,830,064 $ 58,152,032 $ $ $ $ (56,407,183) $ (4,664,190) $ (61,071,373) $ $ 20,247,061 33,308,177 53,555,238 287,805 3,615,255 5,648,867 16,436,375 28,361,264 2011 16,258,079 5,790,357 1,530,799 $ $ 6,211,533 29,790,768 1,977,735 628,671 325,552 3,879,823 5,818,158 13,951,581 26,581,520 17,634,821 5,774,010 1,564,324 2012 $ $ $ 4,570,849 29,544,004 $ 56,125,524 1,691,455 807,498 322,215 4,163,050 7,636,691 9,701,254 24,322,163 20,105,006 6,115,977 1,633,230 9,252,599 37,106,812 $ 61,428,975 (57,415,839) $ (58,432,301) (7,964,104) (336,680) (65,379,943) $ (58,768,981) Note: * Beginning in fiscal year 2016 program revenues were consolidated to align with the basic financial statements Source: Statement of Activities Page 148 Table 2 Fiscal Year 2014 2013 $ $ $ 2,884,854 1,176,336 304,128 6,206,750 4,654,268 11,358,824 26,585,160 22,667,401 6,368,920 1,741,609 $ $ $ 433,384 6,899,047 7,565,511 6,171,185 24,387,464 24,767,428 6,641,318 2,182,278 $ $ $ 5,962,050 39,553,074 7,987,680 38,765,610 $ $ 65,350,770 $ (59,646,481) $ (597,997) (60,244,478) $ $ 2,603,723 714,614 2015 63,940,538 2,766,974 1,624,427 416,607 5,353,778 10,777,134 8,252,449 29,191,369 24,650,687 6,922,425 2,237,359 2016 $ $ $ 14,454,883 48,265,354 $ (67,626,617) $ (1,960,842) (69,587,459) $ 77,456,723 $ (65,761,779) $ 4,566,175 (61,195,604) $ 2,398,256 1,713,627 386,041 7,043,227 9,518,206 12,134,476 33,193,833 2017 $ $ 27,724,410 7,125,427 2,234,046 110,837 11,692,490 48,887,210 $ 82,081,043 $ 2,368,056 1,313,160 3,135,416 9,079,431 10,546,333 12,246,216 38,688,612 31,358,803 7,577,840 2018 $ $ $ 110,718 13,317,172 52,364,533 (73,470,355) $ 2,148,130 (71,322,225) $ 91,053,145 2,592,414 1,373,556 81,727 2,984,530 10,416,143 16,164,698 7,442,815 41,055,883 35,203,483 7,812,267 12,237,823 55,253,573 $ 96,309,456 (86,561,338) $ (96,111,844) 16,356,679 22,192,936 (70,204,659) $ (73,918,908) continued Page 149 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2009 Revenues and Other Changes in Net Position Governmental Activities: Taxes Intergovernmental Investment income Special assessments* Miscellaneous Transfers Special item - Loss on debt extinguishment Total Governmental Activities Business-type Activities Investment income Proceeds from the sale of water rights Miscellaneous Transfers Total Business-type Activities Total Primary Government Changes in Net Position Governmental Activities Business-type Activities Total Primary Government $ 59,003,971 12,236,437 148,687 2010 $ $ 911,254 (7,751,307) 64,549,042 $ $ 121,900 $ 78,586 7,751,307 7,951,793 $ $ 2,026,285 (7,815,285) 60,921,516 $ 53,595,119 9,699,146 227,446 55,301,512 12,704,826 319,017 827,619 (3,390,940) 60,958,390 $ 493,244 (3,892,665) 64,925,934 $ 71,819 $ 72,500,835 $ 84,796,103 41,259,970 $ 126,056,073 $ $ 2012 $ 57,527 4,352,000 100,698 7,815,285 12,325,510 $ $ 55,623,884 10,907,518 179,114 2011 $ 92,945 $ 638,611 3,390,940 4,101,370 $ 117,103 3,892,665 4,102,713 73,247,026 $ 65,059,760 $ 69,028,647 4,514,333 7,661,320 12,175,653 $ 3,542,551 $ (3,862,734) (320,183) $ 6,493,633 3,766,033 10,259,666 $ Note: * Prior to fiscal year 2014 Special Assessments were shown in Public Works-Capital Grants and Contributions Source: Statement of Activities Page 150 Table 2 Fiscal Year 2014 2013 2015 2016 2017 $ 58,957,595 14,194,960 439,982 2018 $ 63,495,983 $ 66,223,459 $ 71,256,446 $ 74,899,373 15,285,440 16,361,588 16,848,837 20,019,457 414,689 361,146 710,040 560,547 2,189,906 4,980,000 1,455,665 1,183,618 975,258 393,977 886,502 (4,876,544) (5,138,252) (582,797) (5,564,606) 2,800,000 $ 70,171,658 $ 77,431,384 $ 88,318,654 $ 83,644,694 $ 99,165,879 341,814 3,700,000 (36,893) $ 107,831,918 $ 95,839 $ 136,531 $ 151,405 103,482 582,797 837,684 $ 237,615 $ 22,955 5,564,606 5,825,176 $ 82,662,446 19,967,694 1,196,857 $ 123,100 $ 47,246 $ 31,081 (2,800,000) (2,645,819) $ 37,024 (3,700,000) (3,615,730) 432,983 4,876,544 $ 5,405,366 222,911 5,138,252 $ 5,497,694 $ $ 75,577,024 $ 82,929,078 $ 89,156,338 $ 89,469,870 $ 96,520,060 $ 104,216,188 $ 10,525,177 4,807,369 $ 15,332,546 $ 9,804,767 3,536,852 $ 13,341,619 $ 22,556,875 5,403,859 $ 27,960,734 $ 10,174,339 7,973,306 $ 18,147,645 $ 12,604,541 13,710,860 $ 26,315,401 $ 11,720,074 18,577,206 $ 30,297,280 concluded Page 151 Page 152 Table 3 City of Goodyear Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year Property Taxes 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 22,332,774 21,908,223 18,862,731 16,572,825 16,218,397 17,109,458 18,171,606 19,114,087 19,875,628 20,649,103 Sales & Use Taxes $ 34,205,906 31,448,398 32,729,749 36,364,557 40,222,752 43,775,464 45,333,649 49,309,600 52,085,570 58,831,503 Source: City Financial Records and Reports Page 153 Franchise Taxes $ 2,195,748 2,233,908 2,316,821 2,460,521 2,529,456 2,611,061 2,718,204 2,832,759 2,941,175 3,181,840 State Shared Revenues - not Restricted for Specific Programs State Shared State Revenue Highway User Sales Sharing Revenue $ 5,355,676 4,940,934 5,201,106 7,195,568 7,527,259 8,009,713 8,459,645 8,988,686 10,324,010 10,354,186 $ 6,855,644 5,966,584 4,498,039 5,509,258 6,667,701 7,275,727 7,901,942 7,859,101 9,665,448 9,613,508 $ 2,771,889 2,626,096 2,752,001 3,269,285 3,575,158 3,681,156 4,041,402 4,264,827 5,066,574 5,042,068 City of Goodyear Excise Tax Collections Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2009 2010 2011 2012 2013 2014 City Privilege (Sales) Tax State-Shared Sales Tax State-Shared Income Tax State-Share Vehicle License Tax Fines and Forfeitures Franchise Taxes $ 34,205,906 3,676,853 6,855,644 1,678,823 686,557 2,195,748 $ 31,448,398 3,391,361 5,966,584 1,549,573 846,143 2,233,909 $ 32,729,749 3,661,678 4,498,039 1,539,429 849,060 2,316,820 $ 36,364,557 5,100,608 5,509,258 2,094,960 825,971 2,460,521 $ 40,222,752 5,342,879 6,667,701 2,184,380 809,334 2,529,456 $ 43,775,464 5,681,717 7,275,727 2,327,996 884,735 2,611,016 Total $ 49,299,531 $ 45,435,968 $ 45,594,775 $ 52,355,875 $ 57,756,502 $ 62,556,655 Source: City Financial Records and Reports Page 154 Table 4 Fiscal Year 2015 2016 2017 2018 $ 45,333,649 5,965,400 7,901,942 2,494,245 860,313 2,718,204 $ 49,309,600 6,258,721 7,859,101 2,729,966 839,108 2,832,759 $ 52,085,570 7,217,395 9,665,448 3,106,615 925,314 2,941,175 $ 58,831,503 7,151,224 9,613,508 3,202,962 1,044,317 3,181,840 $ 65,273,754 $ 69,829,255 $ 75,941,517 $ 83,025,354 Page 155 City of Goodyear Sales & Use Taxes by Industry Classification Last Ten Fiscal Years (Unaudited) Fiscal Year 2009 Mining & Government Construction Manufacturing Utilities Wholesale Trade Retail Trade Restaurant & Bar Real Estate Hotels Services Miscellaneous $ 11,412 12,779,596 508,454 2,448,686 538,279 9,568,935 3,687,991 2,227,491 854,203 1,176,780 622,042 Total* $ 34,423,869 2010 $ 15,141 5,365,079 535,972 3,085,682 540,630 11,569,427 4,161,539 2,692,806 820,902 1,388,178 640,388 $ 30,815,744 2011 $ 5,234 3,251,977 642,255 3,275,325 598,098 12,950,291 4,415,910 3,510,263 764,996 1,771,527 1,055,398 $ 32,241,274 2012 $ 9,534 4,755,592 701,876 3,469,559 924,842 13,576,350 4,763,951 3,480,031 873,241 1,640,296 1,414,929 $ 35,610,202 * Total may differ from Governmental Activities Tax Revenues By Source because of difference in reporting periods. Source: Arizona Department of Revenue North American Industry Code System (NAICS) Summary Page 156 2013 $ 970 7,027,296 759,858 3,656,309 977,475 14,265,735 5,079,528 4,405,695 885,571 1,700,258 873,005 $ 39,631,700 2014 $ 4,024 7,988,471 931,362 3,819,536 1,072,608 15,787,043 5,450,424 4,467,373 849,052 1,764,488 968,896 $ 43,103,277 Table 5 Fiscal Year 2015 $ 7,159 5,559,142 1,318,999 4,051,837 1,130,527 16,348,224 6,343,415 5,480,481 1,067,357 2,424,312 1,032,464 $ 44,763,917 2016 $ 6,534 7,545,663 1,410,894 4,077,652 1,032,679 17,279,498 7,032,111 5,575,550 1,096,710 2,833,590 839,592 $ 48,730,473 Page 157 2017 $ 1,411 7,276,208 1,430,501 4,088,382 1,071,275 18,204,620 7,551,936 6,043,628 1,054,997 2,900,952 1,256,834 $ 50,880,744 2018 $ 2,064 9,248,956 1,195,577 4,143,475 1,432,261 19,381,848 8,567,822 6,485,025 1,142,972 3,209,135 1,804,279 $ 56,613,413 City of Goodyear Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2009 General Fund Reserved Unreserved $ 2010 $ 29,117,875 17,812,619 10,742,777 2011* $ 2012 $ 2013 $ Nonspendable: 961,840 961,840 Inventories Advances to other funds 3,627 16,258 961,840 8,916 Prepaid items 422,681 500,911 486,842 Restricted by: Charter mandates 3,209,321 3,377,572 3,528,982 Court 198,457 261,229 234,813 Law enforcement 129,231 125,812 208,085 Transit 543,022 Assigned to: IT replacement 407,961 437,873 170,684 Fleet replacement 383,225 1,730,168 3,032,429 Risk management 558,310 811,244 357,741 Parks management Police asset reserve Fire asset reserve Traffic signal reserve Unassigned Total General Fund All Other Governmental Funds Reserved, Reported in: Debt Service Funds Capital Projects Funds Community Facilities District Unreserved, Reported in: Special revenue funds Capital projects funds 21,481,088 $ 29,117,875 $ 28,555,396 $ $ 13,597,749 4,110,554 $ 14,891,228 1,393,549 47,213 $ 23,153,403 1,435,331 27,755,741 23,074,844 $ 31,297,751 $ 33,325,255 $ 42,858,609 $ 20,452,179 Nonspendable: Inventories 289,782 412,916 595,675 Prepaid items 46,238 45,225 36,182 Restricted by: Debt service 15,113,512 15,663,838 15,482,259 Development impact fees 21,992,019 21,720,718 16,241,644 285,914 400,610 493,395 536,230 538,410 Highway user funds Transit Capital projects 1,695,700 Community facilities districts operations Committed Unassigned Total All Other Governmental Funds (2,336,765) $ 42,297,037 $ 36,784,169 $ 35,926,930 (9,854) $ 38,771,863 Note: *Starting with fiscal year 2011, fund balances were stated in classification required by GASB Statement No. 54 Source: City Financial Records and Reports Page 158 711,980 (26,073) $ 35,230,762 Table 6 Fiscal Year 2014 $ 2015 $ 2016 2017 $ 961,840 961,840 25,261 21,656 504,865 $ 2018 $ 961,840 1,251,242 1,045,531 573,473 667,798 683,056 758,946 3,676,547 3,841,444 4,009,183 4,186,816 4,377,576 221,290 240,631 178,351 200,753 238,965 274,392 309,112 427,243 384,144 432,662 644,135 745,210 847,446 952,239 1,064,752 1,484,148 108,301 498,851 1,829,656 1,956,201 1,502,483 2,508,319 3,196,101 1,251,242 4,504,416 792,947 1,088,234 1,077,452 933,704 888,212 1,271,367 2,729,350 3,033,620 2,147,562 134,146 403,209 454,872 74,699 $ 43,707,677 49,783,760 52,620,845 53,399,369 60,552,115 53,795,585 $ 60,181,980 $ 65,756,477 $ 70,352,342 $ 79,516,713 $ $ $ $ 650,344 487,413 564,639 533,304 553,663 14,848,703 13,810,210 12,989,198 13,219,610 5,576,920 7,892,792 9,833,566 12,882,857 12,428,141 19,453,023 47,570 174,025 721 37,130 274,106 4,414,851 803,837 1,109,573 35,863 $ 21,876,083 2,442,864 1,963,850 (22,755) $ 51,879,511 (73,354) (66,487) (28,737) 1,846,863 1,647,416 (105,729) 24,443,998 $ 29,763,151 $ 27,842,784 $ 39,475,953 Page 159 1,434,106 9,869,218 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Special assessments Contributions Miscellaneous Total Revenues 2009 2010 2011 2012 2013 2014 $ 58,734,426 3,091,729 16,827,730 6,387,350 686,557 148,220 3,065,304 3,403,370 593,684 92,938,370 $ 55,590,530 629,979 16,464,531 7,402,083 846,143 178,715 6,522,924 3,042,851 1,942,018 92,619,774 $ 53,909,300 4,541,951 15,825,858 3,978,325 849,060 225,588 4,859,749 2,707,926 157,090 87,054,847 $ 55,397,903 4,729,946 19,319,623 3,876,918 825,971 319,017 5,844,915 3,099,952 361,202 93,775,447 $ 58,970,605 6,793,070 18,723,318 6,322,025 809,334 439,982 5,845,306 4,024,175 567,839 102,495,654 $ 63,577,425 7,460,830 19,325,653 4,658,927 884,735 414,689 5,839,886 2,408,357 1,327,008 105,897,510 Expenditures ** General government Public safety Community services* Highways and streets Public works Culture and recreation Development services Capital outlay Debt Service: Principal retirement Interest and debt cost Payment to refunded bond escrow agent Total Expenditures 14,752,949 26,043,960 1,248,219 5,686,483 3,901,157 4,393,748 9,723,957 47,556,824 15,316,159 24,367,955 15,913,718 24,045,015 16,953,769 24,862,833 17,376,427 26,764,289 16,895,276 28,310,822 4,098,986 3,075,759 3,882,621 4,654,052 13,494,149 3,808,328 3,047,742 3,936,203 4,376,985 9,234,659 3,340,208 2,967,386 4,115,701 4,557,391 6,437,600 4,674,325 2,093,312 4,884,349 5,232,999 18,252,039 5,585,966 2,045,578 4,975,947 5,823,318 18,496,444 7,392,618 11,930,502 132,630,417 10,942,758 11,158,130 90,990,569 11,254,524 10,645,162 86,262,336 12,433,024 10,687,152 86,355,064 10,226,228 10,987,906 100,491,874 9,441,923 9,765,514 101,340,788 Excess of Revenues over (under) Expenditures (39,692,047) 1,629,205 792,511 7,420,383 2,003,780 4,556,722 Notes: * Community Services was reorganized into General Government and Development Services for fiscal year 2010 ** Beginning in fiscal year 2016 expenditure functions were consolidated to align with the basic financial statements Source: Statement of Revenues, Expenditures and Changes in Fund Balances Page 160 Table 7 Fiscal Year 2015 2016 2017 2018 $ 66,203,440 6,558,607 21,749,386 4,576,618 860,313 361,146 5,762,295 2,976,642 243,473 109,291,920 $ 71,287,200 7,357,205 21,811,572 5,792,947 839,108 710,040 6,096,012 1,346,713 728,930 115,969,727 $ 74,924,078 9,302,729 25,780,719 9,227,037 925,314 560,547 6,009,405 1,638,229 516,160 128,884,218 $ 82,602,447 10,636,668 26,773,324 10,418,539 1,044,317 1,196,857 5,968,798 6,358,002 2,485,672 147,484,624 18,081,622 29,505,746 17,968,635 32,881,648 19,191,902 36,905,961 20,825,896 39,779,006 5,494,087 2,268,109 5,265,454 6,933,854 11,326,103 5,680,917 2,255,101 5,712,191 7,933,367 15,988,901 5,748,952 2,598,519 12,090,866 7,187,389 17,628,611 5,517,174 2,897,716 11,315,720 7,159,767 30,366,883 9,291,703 9,323,202 97,489,880 9,772,183 9,046,458 107,239,401 14,581,544 12,968,581 128,902,325 19,642,573 15,708,001 4,622,056 157,834,792 11,802,040 8,730,326 (18,107) (10,350,168) Page 161 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2009 Other Financing Sources and (Uses) Transfer in Transfer out Debt issuance Debt premium Refunding bonds Refunding bonds premium Payment to refunded bond escrow agent $ 2010 2011 2012 4,123,384 $ 6,376,290 $ 8,388,300 $ 5,504,462 $ 4,726,150 (11,874,691) (14,191,575) (10,837,705) (9,397,127) (9,602,694) 604,500 105,000 1,780,000 10,500,000 5,722 5,733 129,958 11,530,000 10,685,000 949,267 672,545 (3,585,000) (11,530,000) (10,965,024) Total Other Financing Sources and (Uses) (10,726,085) (7,704,552) (2,449,405) Net Change in Fund Balances $ (50,418,132) $ (6,075,347) $ (1,656,894) $ 6,386,943 Debt Service as a Percentage of Noncapital Expenditures Source: City Financial Records and Reports Page 162 2013 21.5% 27.0% 27.3% (1,033,440) 28.9% 6,015,977 $ 8,019,757 25.8% Table 7 Fiscal Year 2015 2014 2016 2017 2018 $ 5,356,364 $ 4,588,019 $ 3,539,227 $ 12,768,632 $ (10,494,616) (9,923,248) (9,091,060) (9,968,632) 4,980,000 10,968,000 (39,461) 14,755,000 7,015,000 18,535,000 118,130,941 1,114,908 452,099 2,047,350 14,546,606 (7,168,901) (20,106,713) (130,387,703) (15,138,166) $ (4,406,510) (96,492) 150,212 $ 11,705,548 22.3% 20.6% Page 163 (5,076,196) $ 3,654,130 18.4% 16,057,844 $ 16,039,737 24.7% 13,901,429 (10,201,429) 25,015,000 51,537,627 722,171 (49,056,702) 31,918,096 $ 21,567,928 27.8% City of Goodyear Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Unaudited) City Direct Rate Overlapping Rates County-Wide Jurisdictions Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt Operating Service Rate Rate 0.6678 0.9322 0.6320 0.9679 0.7603 0.6630 0.9446 0.6554 1.1115 0.6635 1.1994 0.7006 1.1836 0.6864 1.1637 0.7063 1.1598 0.7025 1.1344 0.6005 Total City Rate 1.6000 1.5999 1.4233 1.6000 1.7750 1.9000 1.8700 1.8700 1.8623 1.7349 County Operating Rate 1.0327 0.9909 1.0508 1.2407 1.2407 1.2807 1.3209 1.3609 1.4009 1.4009 Source: Maricopa County Assessor's Office Page 164 County Library Fire District District Assistance Rate Rate 0.0353 0.0053 0.0353 0.0057 0.0412 0.0066 0.0492 0.0084 0.0492 0.0110 0.0438 0.0121 0.0556 0.0113 0.0556 0.0116 0.0556 0.0112 0.0556 0.0102 County County Flood Education District Equalization Rate Rate 0.1367 0.1367 0.3306 0.1489 0.3564 0.1780 0.4259 0.1780 0.4717 0.1392 0.5123 0.1392 0.5089 0.1592 0.5054 0.1792 0.5010 0.1792 0.4875 Table 8 Overlapping Rates County-Wide Jurisdictions Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Community College Rate 0.9386 0.8844 0.9728 1.2082 1.3778 1.5340 1.5187 1.4940 1.4651 1.4096 Central Arizona Project Rate 0.1000 0.1000 0.1000 0.1000 0.1000 0.1400 0.1400 0.1400 0.1400 1.4000 Special Health Care District Rate 0.0856 0.0914 0.1122 0.1494 0.3053 0.2941 School Districts Total Agua Fria/ County Avondale Litchfield Rate Rate Rate 2.3342 5.7554 4.9382 2.5750 6.0066 5.3164 2.7889 5.3923 5.3658 3.3598 7.4753 3.2590 3.4284 7.4945 3.8863 3.6621 8.2090 3.9772 3.6946 10.0022 3.7780 3.7267 9.4960 3.8352 4.0583 9.8771 3.8142 5.2371 8.9315 3.4763 Buckeye/ Tolleson/ Liberty Littleton Rate Rate 5.5581 6.3843 5.2568 5.8681 6.1069 6.1935 6.2698 7.8626 6.9607 9.2259 7.1092 11.4641 8.0102 10.4333 7.6149 9.9303 7.0163 9.5342 7.0616 9.8185 Mobile Rate 8.3984 6.2147 5.4994 4.9490 6.9350 7.7572 7.8876 7.8876 8.1213 7.8876 continued Page 165 City of Goodyear Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Unaudited) Overlapping Rates Other Special Taxing Districts Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 West Maricopa Education Center District Rate 0.0500 0.0500 0.5000 0.0500 0.0500 0.0592 0.0810 0.0698 0.0840 0.1780 Page 166 Central Arizona GRD Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Estrella Centerra Cortina Cottonflower Mtn. Ranch Roosevelt Community Community Community Community Irrigation Facilities Facilities Facilities Facilities District District District District District Rate Rate Rate Rate Rate 17.1000 2.6965 0.1520 1.2843 1.3000 17.1000 2.6829 1.2146 2.1198 1.3000 17.1000 2.3797 2.2087 2.9776 1.3000 17.1000 2.1961 2.7298 3.4033 1.3000 17.1000 3.2961 2.8500 3.8528 1.3000 17.1000 3.3559 2.8500 3.9890 1.3000 27.1000 3.0361 2.6034 3.2768 1.3000 27.1000 3.1327 2.5999 3.3377 1.3000 27.1000 2.7404 2.3824 3.0482 1.3000 2.6706 1.8877 2.5714 1.3000 27.1000 Table 8 Overlapping Rates Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Other Special Taxing Districts Palm King Wildflower Wildflower Goodyear Goodyear Community Community Valley Ranch Community Community Facilities Facilities Community Community Facilities Facilities General Utilities Facilities Facilities General General District #1 District #1 District #3 District District #1 District #2 Rate Rate Rate Rate Rate Rate 0.5313 1.0000 1.7949 0.3000 1.1703 1.3143 0.6629 1.0000 0.2165 0.3000 1.5905 1.6561 0.7570 1.0000 1.2952 0.3000 2.2891 2.5496 0.8034 1.0000 1.2684 0.3000 2.8718 2.9933 1.0000 1.0000 1.8035 0.3000 3.3150 3.3467 1.0000 1.0000 1.7844 0.3000 3.4365 3.8922 0.7334 1.0162 1.2592 0.3000 2.7761 3.0227 0.7075 1.1497 1.1097 0.3000 2.9103 3.1070 2.7238 2.9330 0.8466 1.1500 0.9308 0.3000 0.9600 1.1500 0.8682 0.3000 2.8882 3.0463 concluded Page 167 Page 168 Table 9 City of Goodyear Principal Property Tax Payers Current Fiscal Year and Nine Years Prior (Unaudited) Fiscal Year 2009 2018 Rank Percentage of Total Taxable Assessed Value 19,960,801 1 1.99% $ 22,462,449 1 2.74% VHS of South Phoenix, Inc. 15,583,182 3 1.56% 16,495,971 2 2.02% Macys Corporate Services Inc 8,866,241 8 0.89% 8,316,180 3 1.02% HUHTAMAKI Inc 7,443,240 4 0.91% HCL Goodyear Centerpointe LLC (Lease) 6,278,830 5 0.77% Southwest Gas Corporation (T&D) 5,157,219 6 0.63% HGREIT II Goodyear Crossing LLC 6,666,252 7 0.81% The Market at Estrella Falls LLC 5,595,681 8 0.68% FR PV 303 LLC 6,493,487 9 0.79% Litchfield Park Service Company Sewer 4,132,524 10 0.50% Taxable Assessed Value Taxpayer Arizona Public Service Company $ Suncor Development Company 15,902,473 2 1.59% NNP Estrella Mountain Ranch LLC 13,715,458 4 1.37% Duke Realty 11,857,862 5 1.18% First American Title Ins Co TR 7854 10,401,767 6 1.04% NNP III EMR 3 LLC 9,883,681 7 0.99% DOA Properties I LLC 8,696,214 9 0.87% Cardinal Capital Co. 7,472,133 10 0.75% Total $ 122,339,812 Source: Maricopa County Treasurer Page 169 12.23% Taxable Assessed Value Rank $ 89,041,833 Percentage of Total Taxable Assessed Value 10.88% City of Goodyear Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) Total Assessed Value Residential Property Fiscal Year Ended June 30 $ 434,868,600 586,181,619 Total Assessed Value Commercial Property $ 179,455,120 211,360,209 Agricultural/ Vacant Land $ 191,759,294 323,172,973 Less: Tax-Exempt Property Other $ 62,183 30,053 $ 71,196,812 120,023,805 Net Assessed Value 2009 Primary Secondary 2010 Primary Secondary 482,286,104 497,383,109 233,187,882 284,491,038 248,660,120 374,640,069 63,427 28,842 113,281,184 173,686,635 850,916,349 982,856,423 2011 Primary Secondary 404,164,550 405,850,285 265,580,527 297,842,341 246,048,945 308,078,489 70,064 33,349 126,711,288 163,045,578 789,152,798 848,758,886 2012 Primary Secondary 357,230,458 357,367,570 238,218,141 252,752,614 194,223,071 206,673,571 226,506 214,401 122,548,914 144,006,328 667,349,262 673,001,828 2013 Primary Secondary 338,747,451 339,165,652 220,657,668 228,812,312 163,082,414 167,084,029 240,243 244,254 120,560,037 129,664,064 602,167,739 605,642,183 2014 Primary Secondary 340,280,668 342,294,870 205,111,305 211,390,271 161,905,429 165,979,539 273,421 275,521 122,898,455 129,681,549 584,672,368 590,258,652 2015 Primary Secondary 393,827,703 416,834,896 192,119,198 196,638,563 158,537,781 169,043,455 1,158,177 1,167,249 115,918,333 122,400,093 629,724,526 661,284,070 2016 Limited Property Value 427,218,918 223,077,763 149,242,505 1,127,677 129,713,965 670,952,898 2017 Limited Property Value 457,689,029 227,887,800 146,856,414 6,601,784 128,500,705 710,534,322 2018 Limited Property Value 499,088,340 234,739,156 159,566,464 6,975,609 137,331,297 763,038,272 Notes: Beginning in fiscal year 2016, the Net Assessed Limited Property Value is statutorily required to be used for the calculation of primary and secondary property taxes. Prior to fiscal year 2016, the primary levy was calculated using the limited assessed valuation and the secondary levy was calculated using the full cash assessed valuation. Source: Maricopa County Assessor's Office Page 170 $ 734,948,385 1,000,721,049 Table 10 Estimated Actual Taxable Value Total Direct Tax Rate $ 0.6678 0.9322 $ Assessed Value as Percentage of Actual Value 6,329,622,800 8,799,999,309 11.6% 11.4% 0.6320 0.9679 7,439,067,045 8,607,745,155 11.4% 11.4% 0.7603 0.6630 6,843,890,271 7,401,814,203 11.5% 11.5% 0.9446 0.6554 5,978,258,706 6,130,095,795 11.2% 11.0% 1.1115 0.6635 5,513,086,956 5,583,052,641 10.9% 10.8% 1.1994 0.7006 5,485,036,603 5,562,951,789 10.7% 10.6% 1.1836 0.6864 6,012,798,998 6,332,435,414 10.5% 10.4% 1.8700 6,479,932,484 10.4% 1.8623 6,951,354,974 10.2% 1.7349 7,490,466,600 10.2% Page 171 Table 11 City of Goodyear Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Fiscal Year Taxes Levied Ended for the June 30 Fiscal Year (a) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 14,460,290 14,959,898 11,650,452 10,743,752 10,714,099 11,185,149 11,992,446 12,599,829 13,157,209 13,232,702 Collected within the Collection in Fiscal Year of the Levy Percentage Subsequent Amount of Levy Years $ 13,724,436 14,328,617 11,291,963 10,454,308 10,523,654 10,949,615 11,808,563 12,392,149 13,024,932 13,071,185 94.91% 95.78% 96.92% 97.31% 98.22% 97.89% 98.47% 98.35% 98.99% 98.78% $ 346,004 317,754 24,739 101,729 47,705 51,739 113,307 23,886 53,465 Total Collections to Date Percentage Amount of Levy $ 14,070,440 14,646,371 11,316,702 10,556,037 10,571,359 11,001,355 11,921,870 12,416,035 13,078,397 13,071,185 97.30% 97.90% 97.14% 98.25% 98.67% 98.36% 99.41% 98.54% 99.40% 98.78% (a) Tax levy is reported by the Treasurer as of August of each fiscal year. Amount does not include adjustments made to levy amounts after the August report. Source: Maricopa County Treasurer's Office Page 172 Table 12 City of Goodyear Utility Statistical Data Ten Largest Water Users Current Fiscal Year and Nine Fiscal Years Ago (Unaudited) Fiscal Year Entity Cancer Treatment Canyon Trails HOA Canyon Trails Unit HOA 3A Snyders Poor Brothers Canyon Trails Unit HOA 3B Canyon Trails Unit HOA 4A Canyon Trails 4 - South 3 Minute Car Wash Shepard Investment Sarival Paseo Joint Community Agua Fria Union High School Dist. Centerra, LLC Avondale School JB Park Shadows Pueblo Verda HOA Type of User Commercial Homeowner's Association Homeowner's Association Industry Industry Homeowner's Association Homeowner's Association Homeowner's Association Car Wash Apartments Homeowner's Association School Homeowner's Association School Apartments Homeowner's Association Total Total as a percent of total Water System Operating Revenue Source: City customer service and billing records Page 173 2009 2018 Fees & Fees & Rank Charges Rank Charges $ 1 $ 209,340 1 197,693 2 164,067 2 175,863 3 155,991 4 147,927 5 145,390 6 126,490 3 154,868 7 119,922 4 143,926 8 117,240 9 122,299 10 119,599 5 127,107 6 113,045 7 106,752 8 92,499 9 70,677 10 65,138 $ 1,247,568 $ 1,428,266 14.00% 7.15% Page 174 Table 13 City of Goodyear Utility Statistical Data Ten Largest Wastewater Users Current Fiscal Year and Nine Fiscal Years ago (Unaudited) Fiscal Year Entity Arizona State Prison/Perryville Cancer Treatment Center Poore Brothers, Inc. 3 Minute Car Wash Shepard Inv Apartments Park Shadows Huhtamaki McLane Sunwest Lunaire Apartments Schoeller Arca Systems Inc Fairfield Centerra LLC Airport Training Center Avondale Elementary Agua Fria Union High School District Alliance Residential Americas Best Value Inn 2009 2018 Fees & Fees & Type of User Rank Charges Rank Charges Prison 1 $ 310,582 1 $ 1,093,805 Hospital 2 110,565 Food Manufacturer, Snacks 5 29,681 3 76,193 Car Wash 4 62,929 Apartments 5 62,069 Apartments 2 50,718 6 54,217 Manufacturer 7 38,092 Grocery Distributor 8 22,180 8 32,447 Apartments 9 32,191 Manufacturer 10 31,800 Real Estate 3 37,170 Airport 4 31,970 Education 6 28,237 Education 7 25,516 Real Estate 9 20,015 Hotel 10 19,547 Total Total as a percent of total Wastewater System Operating Revenue Page 175 $ 575,616 $ 1,594,307 9.01% 10.46% City of Goodyear Schedule of Existing and Adopted Monthly Water & Wastewater Service Charges (2011 - 2018) (Unaudited) Description of Water System Services Adopted Adopted Adopted Adopted Adopted Adopted Adopted 2011 2012 2013 2015 2016 2017 2018 Existing Fees Base Charge (Meter Size) 3/4 Inch 9.94 $ 10.05 $ 10.23 $ 11.24 $ 12.70 $ 14.73 $ 16.35 1 Inch $ 16.35 22.61 $ 11.81 12.74 14.14 15.54 17.56 20.37 22.61 1 1/2 Inch 36.55 16.36 19.74 22.86 25.12 28.39 32.93 36.55 2 Inches 59.17 26.22 32.02 37.01 40.67 45.96 53.31 59.17 3 Inches 77.67 48.43 61.64 70.67 77.67 77.67 77.67 77.67 4 Inches 126.65 83.36 99.58 115.24 126.65 126.65 126.65 126.65 6 Inches 240.36 159.83 189.08 218.71 240.36 240.36 240.36 240.36 Monthly Volume Charge - Residential 0 - 6,000 gallons (per thousand) $ 1.71 (2) $ 1.32 $ 1.46 $ 1.18 $ 1.30 $ 1.47 $ 1.71 $ 1.90 6,001 - 12,000 (per thousand) 3.40 (3) 2.64 2.92 2.36 2.59 2.93 3.40 3.77 12,001 - 30,000 (per thousand) 5.10 (4) 3.96 4.38 3.54 3.89 4.40 5.10 5.66 30,001+ gallons (per thousand) 8.19 (5) 5.15 5.69 5.69 6.25 7.06 8.19 9.09 Monthly Volume Charge - Commercial 0 - 40,000 gallons (per thousand) $ 4.29 $ 2.30 $ 2.60 $ 3.00 $ 3.30 $ 3.73 $ 4.29 $ 4.72 40,001 - 100,000 gallons (per thousand) 6.87 3.68 4.16 4.80 5.28 5.97 6.87 7.56 100,001+ gallons (per thousand) 8.97 4.78 5.41 6.24 6.86 7.75 8.97 9.80 Schedule of Water System Rate Increases (2011-2018) Rate Date Increase Fiscal Year 2011 7.50% Fiscal Year 2012 9.40% Fiscal Year 2013 0.00% Fiscal Year 2014 N/A Fiscal Year 2015 10.00% Fiscal Year 2016 13.00% Fiscal Year 2017 16.00% Fiscal Year 2018 11.00% Note: Rates shown are for customers within city limits. The rates for customers outside of the city limits are 25% greater than the customers within city limits. Rate increases are adopted at the direction of City Council. Source: City Financial Records, Reports and Water & Wastewater Rate Study. The table above reflects only certain fees and charges of the City's water system and is not a comprehensive statement of all such fees. Page 176 Table 14 Description of Wastewater System Services Existing Fees Adopted Adopted Adopted Adopted Adopted Adopted 2011 2012 2013 2016 2017 2018 Residential Wastewater Service Base Charge (See below) Volume Charge (per 1,000 gallons) $ 6.25 $ 4.45 $ 4.90 $ 5.78 $ 5.95 $ 6.13 $ 6.25 6.25 $ 4.45 $ 4.90 $ 5.78 $ 5.95 $ 6.13 $ 6.25 22.85 $ 17.52 $ 18.96 $ 21.12 $ 21.75 $ 22.40 $ 22.85 General Commercial Wastewater Service Base Charge (See below) Volume Charge (per 1,000 gallons) $ Base Charge (Meter Size) 3/4 Inch $ 1 Inch 35.07 23.70 28.02 32.41 33.38 34.38 35.07 1 1/2 Inch 43.22 29.75 34.61 39.94 41.14 42.37 43.22 2 Inches 83.96 54.57 67.16 77.58 79.91 82.31 83.96 3 Inches 115.22 84.74 99.68 115.22 115.22 115.22 115.22 4 Inches 152.86 130.37 139.10 152.86 152.86 152.86 152.86 6 Inches 378.70 285.03 328.83 378.70 378.70 378.70 378.70 Schedule of Wastewater System Rate Increases (2011-2018) Rate Date Fiscal Year 2011 Page 177 Increase 9.30% Fiscal Year 2012 9.50% Fiscal Year 2013 15.20% Fiscal Year 2014 N/A Fiscal Year 2015 N/A Fiscal Year 2016 3.00% Fiscal Year 2017 3.00% Fiscal Year 2018 2.00% City of Goodyear Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Fiscal Year Ended June 30 General Obligation Bonds 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 35,842,739 33,601,981 31,358,457 29,000,636 26,555,569 24,616,149 21,638,323 18,564,501 21,987,761 43,983,309 Governmental Activities Public Improvement McDowell Corporation Road Municipal Corridor Contract Facilities Improvement Payable Revenue Bond District $ 11,755,628 5,755,628 3,755,628 1,755,628 $ 5,910,000 5,230,000 4,510,000 2,940,000 12,431,467 11,047,495 10,037,745 8,859,189 127,152,711 121,145,790 $ 47,165,000 46,060,000 44,900,000 43,675,000 42,390,000 42,383,378 40,881,328 39,304,278 37,647,228 34,870,000 Community Facilities District Bonds $ 127,125,000 122,313,000 117,182,000 113,555,000 109,823,000 107,194,657 108,520,857 106,289,435 103,870,391 94,683,268 Source: US Census Bureau, Applied Geographic Solutions/TIGER Geography, and City Financial Records Page 178 Table 15 General Obligation Bonds $ 88,282,261 92,753,019 91,121,543 89,394,364 85,384,431 82,113,973 77,607,211 73,018,360 66,702,679 58,226,165 Page 179 Business-Type Activities Public Improvement Corporation Municipal Facilities Revenue Revenue Bond Bonds $ 102,300,000 102,300,000 102,300,000 102,180,000 102,180,000 104,096,689 103,970,274 104,164,132 $ 2,370,000 17,040,000 32,245,000 31,985,000 31,390,000 30,596,520 30,114,933 42,413,304 41,924,131 40,489,966 Water Infrastructure Finance Authority Loan $ 8,866,108 9,925,289 12,554,096 11,908,603 10,998,942 10,064,007 9,096,237 3,854,322 3,591,773 3,323,972 Water Rights $ 11,173,544 10,314,041 Total $ 440,790,280 445,292,958 439,926,724 426,394,231 421,153,409 412,112,868 401,866,908 396,467,521 402,876,674 396,722,470 Percentage of Personal Income Per Capita 28.68% 25.14% 24.49% 20.10% 22.13% 20.81% 21.38% 19.80% 21.52% 16.23% 7,540 7,119 6,740 6,430 6,264 5,773 5,443 5,304 5,180 4,750 Table 16 City of Goodyear Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) Fiscal Year Ended June 30 General Obligation Bonds 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 124,125,000 126,355,000 122,480,000 118,395,000 111,940,000 106,730,122 99,245,534 91,582,861 88,690,440 102,209,474 Less: Amounts Available in Debt Service Fund $ 592,244 828,016 668,186 1,246,110 841,716 98,876 13,202 703,557 778,715 Source: City Financial Records and Reports Page 180 Total $ 123,532,756 125,526,984 121,811,814 117,148,890 111,098,284 106,631,246 99,245,534 91,569,659 87,986,883 101,430,759 Percentage Estimated Actual Taxable Value of Property 12.34% 12.77% 14.35% 17.41% 18.34% 18.07% 15.01% 13.65% 12.38% 10.52% Per Capita $ 2,113 2,007 1,866 1,767 1,652 1,494 1,344 1,225 1,131 1,215 Table 17 City of Goodyear Direct and Overlapping Governmental Activities Debt As of June 30, 2018 (Unaudited) Net Assessed Limited Property Value Overlapping Jurisdiction Debt Outstanding Net Debt Amount Maricopa County Maricopa County Community College District Maricopa Special Healthcare District Western Maricopa Education Center Liberty Elementary School District No. 25 Avondale Elementary School District No. 44 Littleton Elementary School District No. 65 Litchfield Elementary School District No. 79 Mobile Elementary School District No. 86 Buckeye Union High School District No. 201 Tolleson Union High School District No. 214 Agua Fria Union High School District No. 216 Wildflower Ranch Community Facilities District No. 1 Wildflower Ranch Community Facilities District No. 2 Community Facilities General District No. 1 Community Facilities Utility District No. 1 Estrella Mountain Ranch Community Facilities District Cottonflower Community Facilities District Centerra Community Facilities District Cortina Community Facilities District Palm Valley Community Facilities District Subtotal of overlapping debt: $ 38,251,891,249 38,251,891,249 38,236,246,402 14,005,834,321 226,724,370 342,636,621 232,755,385 760,011,412 8,543,295 670,274,018 1,063,693,901 1,102,200,012 4,763,851 4,730,046 115,968,583 317,994,295 84,854,802 8,998,929 11,300,727 9,787,519 70,779,991 $ 133,781,880,978 380,740,000 75,000,000 126,600,000 16,420,000 33,500,000 23,705,000 50,845,000 77,930,000 72,210,000 93,570,000 550,000 775,000 8,915,000 34,440,000 31,821,000 2,025,000 3,229,000 1,970,000 6,435,000 $ 1,040,680,000 1.99 % $ 1.99 7,594,897 2.00 1,496,692 5.45 6,897,172 58.79 9,653,237 83.28 27,900,007 0.03 6,219 44.76 22,759,587 44.02 19.89 15,497,096 0.01 4,145 56.76 53,106,334 100.00 550,000 100.00 775,000 100.00 8,915,000 100.00 34,440,000 100.00 31,821,000 100.00 2,025,000 100.00 3,229,000 100.00 1,970,000 100.00 6,435,000 $ 235,075,386 Direct Debt: City of Goodyear $ $ 100.00 % $ 186,703,252 763,038,272 $ Estimated Percentage Applicable (a) 186,703,252 Total Direct and Overlapping Debt Total Governmental and Business-Type General Obligation Bonds $ 421,778,638 $ 97,065,020 100.00 % $ 97,065,020 (a) Proportion applicable to the City of Goodyear, Arizona is computed on the ratio of net assessed limited property value for 2017/18. Sources: Maricopa County Assessor's Office and Official Statements Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Goodyear. This process recognizes that when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the government's boundaries and dividing it by the county's total taxable assessed value. Page 181 City of Goodyear Legal Debt Margin Information Last Ten Fiscal Years (Unaudited) Fiscal Year 2009 Net Full Cash Assessed Value $ 1,000,721,049 2010 $ 982,856,423 2011 $ 2012 2013 848,758,886 $ 673,001,828 $ 605,642,183 20% Limitation Debt Limit Equal to 20% of Assessed Valuation 200,144,210 196,571,285 169,751,777 134,600,366 121,128,437 Total Debt Applicable to 20% Limit 123,830,000 126,070,000 122,205,000 118,130,000 111,690,000 47,546,777 $ 16,470,366 71.99% 87.76% 92.21% 50,925,533 $ 40,380,110 $ 36,338,531 275,000 265,000 250,000 50,650,533 $ 40,115,110 $ 36,088,531 0.54% 0.66% 0.69% Legal 20% Debt Margin (Available Borrowing Capacity) $ Total net debt applicable to the limit as a percentage of debt limit 6% Limitation Debt Limit Equal to 6% of Assessed Valuation Total net debt applicable to the limit as a percentage of debt limit $ 61.87% $ Total Debt Applicable to 6% Limit Legal 6% Debt Margin (Available Borrowing Capacity) 76,314,210 60,043,263 59,748,263 0.49% $ 64.13% $ 58,971,385 $ 285,000 295,000 $ 70,501,285 $ 58,686,385 $ 0.48% Source: Maricopa County Treasurer's Office and City financial records and reports Page 182 $ 9,438,437 Table 18 Fiscal Year 2014 $ 590,258,652 2015 $ 659,588,897 2016 $ 2017 670,952,898 $ 871,205,504 2018 $ 964,201,508 118,051,730 131,917,779 134,190,580 174,241,101 192,840,302 104,775,000 97,570,000 90,065,000 106,130,000 97,065,000 44,125,580 $ 68,111,101 67.12% 60.91% 40,257,174 $ 52,272,330 205,000 190,000 40,052,174 $ 52,082,330 0.51% 0.36% $ 13,276,730 $ 88.75% $ 35,415,519 0.71% Page 183 $ 73.96% $ 250,000 $ 35,165,519 34,347,779 39,575,334 $ 220,000 $ 39,355,334 0.56% $ $ 95,775,302 50.33% $ 57,852,090 - $ 57,852,090 0.00% Table 19 City of Goodyear Pledged-Revenue Coverage Last Ten Fiscal Years (Unaudited) Public Improvement Corporation Municipal Facilities Revenue Bonds Fiscal Year Ended June 30 Operating Revenue Pledged Revenue 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 62,281,214 57,363,961 57,697,609 65,501,422 76,004,072 81,109,035 82,672,164 87,880,128 95,623,345 107,069,770 $ 49,326,896 45,979,781 45,808,725 52,566,675 57,969,777 62,768,755 59,861,110 67,903,484 68,619,826 69,446,051 Debt Service Principal Interest $ 680,000 720,000 745,000 570,000 590,000 85,000 230,000 235,000 3,220,000 3,500,000 $ 4,907,984 5,594,412 5,562,612 4,925,626 5,505,685 5,702,661 5,458,563 5,451,663 3,674,649 4,710,941 Coverage 8.83 7.28 7.26 9.57 9.51 10.85 10.52 11.94 9.95 8.46 Water & Sewer Bonds & Loans Fiscal Year Ended June 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Operating Revenue 15,300,056 16,378,677 18,271,778 20,221,750 23,133,152 24,989,997 24,748,802 27,964,881 31,380,884 35,230,057 Less: Operating Expenses 9,733,836 8,350,588 8,965,363 8,703,445 10,837,296 12,684,374 13,405,653 15,205,094 18,471,783 13,551,129 Source: City Financial Records and Reports Page 184 Net Operating Revenue 5,566,220 8,028,089 9,306,415 11,518,305 12,295,856 12,305,623 11,343,149 12,759,787 12,909,101 21,678,928 Debt Service Principal Interest Coverage 877,292 540,523 3.93 1,195,691 543,662 4.62 1,167,815 1,802,534 3.13 1,139,026 5,554,656 1.72 1,504,661 5,819,924 1.68 1,439,935 2,212,948 3.37 1,467,770 2,207,414 3.09 1,496,834 2,159,000 3.49 1,682,550 2,268,124 3.27 1,742,801 2,292,417 5.37 Table 20 City of Goodyear Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) Fiscal Year Population Personal Income (in thousands) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 62,554 65,275 66,309 67,239 71,381 73,832 74,743 77,776 78,189 83,512 1,771,217 1,796,433 2,120,960 1,903,133 1,980,537 1,879,673 2,001,907 1,871,990 2,157,938 2,443,812 Per Capita Personal Income 28,315 27,521 31,986 28,304 27,746 25,459 26,784 24,069 27,599 29,263 Source: Bureau of Labor Statistics and City Financial Records Page 185 Median Age 39.1 35.5 33.5 35.2 38.4 36.5 35.6 36.7 36.7 37.1 Education Level in Years of Schooling 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 13 to 16 Unemployment Rate 6.9% 7.1% 9.8% 8.2% 8.3% 7.2% 5.7% 5.5% 4.4% 4.2% Table 21 City of Goodyear Principal Employers Current Fiscal Year and Nine Fiscal Years Prior (Unaudited) Major Corporation (Abrazo Healthcare) West Valley Hospital Fiscal Year 2009 Percentage of Total City Employees Rank Employment* 510 5 2.26% Macy's Inc Fiscal Year 2018 Percentage of Total City Employees Rank Employment* 1,010 1 2.68% 1,010 2 2.68% Amazon.com 600 4 2.66% 980 3 2.60% Arizona State Prison/Perryville 750 2 3.33% 950 4 2.52% 770 5 2.04% 530 6 1.41% Subzero Freezer Co 500 7 1.33% Avondale Elementary School Dist #44 420 8 1.11% Western Regional Medical Center City of Goodyear 621 3 2.76% McLane Sunwest 497 6 2.21% 350 9 0.93% Walmart Supercenter 430 7 1.91% 340 10 0.90% Lockheed Martin 940 1 4.17% Newell Rubbermaid, Inc. 330 8 1.46% Timco Aviation Services 300 9 1.33% Rudolfo Brothers 291 10 1.29% Total 5,269 Source: Maricopa Association of Governments *2018 labor force = 37688 ; 2009 labor force = 22530 Page 186 23.39% 6,860 18.20% Table 22 City of Goodyear Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years (Unaudited) Fiscal Year 2009 General Government Financial Services Information Services Police Officers Civilians Planning and Development Fire Firefighters and Officers Civilians Human Resources Community Services Economic Development Municipal Services Public Works Water Wastewater Sanitation Total 2010 2012 2013 2014 2015 2016 2017 2018 47 30 15 53 30 13 52 30 13 52 28 14 55 29 14 55 27 15 69 28 18 55 29 18 62 31 18 50 31 19 97 30 16 97 29 10 94 29 9 94 27 9 94 30 25 91 29 23 93 30 21 96 35 50 103 38 50 108 42 49 91 22 10 0 4 14 87 24 19 9 90 22 8 0 7 10 79 23 18 9 87 24 7 0 7 8 78 22 17 9 91 20 9 0 6 13 65 21 18 7 90 7 10 0 4 13 73 23 17 5 91 8 10 0 4 10 75 24 20 5 90 12 10 0 5 13 87 26 19 6 92 10 10 0 6 13 63 27 19 8 92 10 11 0 6 13 63 27 17 7 92 17 10 0 6 14 81 28 18 7 515 498 486 474 489 487 527 531 548 572 Source: City Financial Records and Reports Page 187 2011 City of Goodyear Operating Indicators by Function Last Ten Fiscal Years (Unaudited) Function General Government City Clerk's Office # of records requests City Prosecutor's Office Charges filed/charges adjudicated (resolved) City Manager's Office % of survey respondents rating "Your Neighborhood as a Place to Live" as good to excellent Communications & Public Information News releases/media updates Total newsletter pages sent to citizens Number of visits to website Number of web pages viewed Number of graphics/photography projects completed Fiscal Year 2010 2009 2011 613 504 550 2,494 3,395 3,380 94% 90% 90% 161 186 738,949 2,346,423 200 235 176 715,285 2,208,180 217 150 144 703,174 2,104,553 230 Police # of total arrests # of moving violations citations 2,829 13,313 4,731 11,810 2,254 12,581 Fire # of emergency responses # of fires extinguished # of inspections 5,328 270 3,953 5,570 226 4,262 6,597 235 3,229 10,184 918 163,444 8,024 1,147 168,647 6,413 1,344 170,657 <5 3,401 <3 4,232 <3 3,269 1 1 1 1 1 1 158 4.11% 247 4.18% 125 4.11% 51,844 22,118,000 52,241 22,175,027 54,428 22,696,736 Financial Services # accounts payable checks issued # purchase orders # water meters read annually Planning and Development Customer wait-time (in minutes) at One Stop Shop Total number of permits issued Provide applicant with pre-application meeting within 30 days of submitting request % of inspections performed within 24 hours of request Human Resources # of new hires (FT & PT) (1) HR budgeted operating cost as a % of City budgeted payroll Parks and Recreation # attending Park & Recreation facilities and Libraries annually (2) # of square feet of medians and rights of way maintained Page 188 Table 23 2013 2012 Fiscal Year 2015 2014 2016 2017 2018 484 470 504 598 629 770 904 3,827 2,514 3,170 3,623 3,608 4,261 4,031 94% 94% 95% 95% 93% 93% 91% 49 136 771,938 2,203,995 262 59 112 804,542 2,185,489 254 76 114 491,540 1,850,471 275 N/A 136 633,643 1,855,914 135 88 144 543,565 1,472,765 103 126 128 302,777 1,500,539 157 132 232 588,580 1,271,883 318 2,402 11,468 2,532 10,259 2,612 10,586 2,846 5,919 2,661 3,479 3,296 4,382 2,808 2,281 7,195 271 212 5,604 243 969 8,298 242 752 6,972 205 1,539 6,002 165 1,253 7,498 214 2,050 9,115 252 853 6,132 1,229 178,466 6,298 1,238 184,638 6,403 1,091 191,189 6,254 1,009 196,863 5,914 1,442 201,704 5,772 1,512 208,083 5,254 1,166 269,146 <1 3,576 <1 3,529 <1 3,580 <1 2,868 N/A 5,610 N/A 5,732 NA 5,228 1 0.7 1 1 1 1 1 0.96 1 1 1 1 1 1 118 4.86% 178 5.01% 180 4.85% 144 5.05% 362 5.06% 204 6.00% 220 3.12% 63,256 23,151,438 69,596 23,151,438 74,527 23,151,438 74,527 23,151,438 188,000 23,151,438 249,000 23,151,438 275,000 23,151,438 Page 189 City of Goodyear Operating Indicators by Function Last Ten Fiscal Years (Unaudited) Function Economic Vitality Sales Tax growth (% annual change) Bed Tax growth (% annual change) Fiscal Year 2010 2009 2011 -12.30% -15.00% -10.40% -3.90% 4.42% -7.31% 20,149 20,928 21,489 0 848 729 Water Service # of residential customers # of multifamily customers # of commercial customers Water Service Connections Drinking Water Supplied (million gallons per day) Reclaimed Water Supplied (million gallons per day) 12,394 36 781 13,975 11.00 0.45 13,051 36 742 14,488 11.10 0.23 13,319 36 963 14,588 11.40 0.37 Wastewater # of residential customers # of multifamily customers # of commercial customers Sewer Service Connections Sewage Treated (millions gallons per day) 12,322 36 370 16,144 3.70 12,962 36 372 16,144 3.73 13,298 36 363 16,743 3.73 Other Public Works Street resurfacing (miles) Potholes repaired 4.00 681 372 12.50 260 Citizen & Neighborhood Resources # of new Code Enforcement cases processed per year 2,155 2,255 2,016 Municipal Services # of homes serviced by Residential Refuse Collection # of citizens serviced by Household Hazardous Waste collection program Source: City Financial Records and Reports Page 190 Table 23 Fiscal Year 2015 2012 2013 10.45% 14.15% 11.29% 1.41% 8.76% -4.12% 3.85% 25.71% 8.86% 2.75% 4.04% -3.80% 11.66% 14.37% 22,363 23,387 24,346 25,320 26,323 26,792 29,911 503 546 550 536 503 592 816 13,755 36 976 16,809 11.60 0.32 14,430 36 999 17,533 9.60 0.39 14,959 35 1,025 17,533 11.70 0.32 15,404 36 1,055 17,533 12.70 0.63 16,132 36 865 17,034 11.70 0.63 16,713 36 846 17,899 12.90 0.38 13,950 36 839 18,552 12.90 0.13 13,599 36 364 16,856 3.82 14,231 38 382 16,918 4.15 14,877 36 370 16,918 4.20 15,335 69 373 17,139 3.81 16,064 36 382 18,236 4.15 16,649 36 381 18,980 4.36 17,886 36 381 19,340 4.47 24.00 264 30.00 296 19.20 1,166 83.23 1,253 109.00 1,339 70.33 756 105.27 1,344 2,069 2,841 3,018 2,863 3,544 3,212 2,738 Page 191 2014 2016 2017 2018 Table 24 City of Goodyear Capital Asset Statistics by Function Last Ten Fiscal Years (Unaudited) Fiscal Year 2013 2014 2009 2010 2011 2012 3 130 6 3 124 6 3 130 6 3 125 6 3 126 6 Highways and Streets Street (miles) Streetlights Traffic signals 563 7,969 67 704 8,329 72 704 8,438 72 934 8,465 77 Culture and Recreation Parks Parks Acreage Swimming Pools Tennis Courts Community Centers 16 184 1 6 1 17 204 1 6 1 17 204 1 6 1 307 2,754 16 308 2,791 16 225 58 5.6 223 54 5.6 Function Public Safety Police: Stations Police Vehicles Fire Stations Water Water Mains (miles) Fire Hydrants Storage capacity (thousands of gallons) Wastewater Sanitary Sewers (miles) Storm Sewers (miles) Treatment capacity (MGD) (thousands of gallons) N/A - Indicates the information in not available. Source: City Financial Records and Reports Page 192 2015 2016 2017 2018 3 119 6 4 133 6 4 134 7 6 150 6 5 133 6 934 8,660 84 934 8,832 86 934 8,832 86 934 9,041 89 934 8,651 89 939 9,021 91 17 204 1 6 1 17 204 1 6 1 17 204 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 308 2,791 16 308 2,791 16 308 2,796 16 308 2,808 16 308 2,951 16 330 3,031 16 336 3,152 16 326 3,177 16 229 57 5.6 227 57 5.6 229 57 5.6 239 63 5.6 242 55 5.6 254 54 5.6 260 55 5.6 265 N/A 5.6 COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Goodyear, Arizona Finance Department 190 North Litchfield Road Goodyear, Arizona 85338 623-932-3015