Annual Comprehensive Financial Report FOR THE FISCAL YEAR ENDED JUNE 30, 2024 City of Goodyear, Arizona Finance Department City of Goodyear, Arizona Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Introductory Section Letter of Transmittal GFOA Certificate of Achievement City of Goodyear Officials Organizational Chart Financial Section Independent Auditor’s Report Management’s Discussion and Analysis (MD&A) Basic Financial Statements Government‐Wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Fund Financial Statements Balance Sheet Reconciliation of the Balance Sheet – 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 – Governmental Funds to the Statement of Activities Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses and Changes in Fund Net Position Statement of Cash Flows Fiduciary Fund Financial Statements Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to Financial Statements 1. Summary of Significant Accounting Policies 2. Cash and Investments 3. Receivables 4. Capital Assets 5. Claims and Judgments Payable 6. Leases 7. Loan Payable 8. General Obligation Bonds Payable 9. Revenue Bonds Payable 10. Community Facilities Districts Bonds Payable 11. Changes in Long‐term Liabilities 12. Interfund Receivables, Payables, and Transfers 13. Contingent Liabilities 14. Risk Management 15. Pensions and Other Postemployment Benefits 16. Excess of Expenditures Over Appropriations 17. Fund Balance Classifications 18. Deficit Fund Balances Page 1 8 9 10 13 17 37 38 42 45 46 49 50 51 52 53 54 57 69 73 74 75 75 77 78 78 80 82 83 84 84 85 99 99 99 City of Goodyear, Arizona Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Financial Section Notes to Financial Statements 19. Commitments 20. Tax Abatement Agreements 21. Subsequent Event Page 100 101 102 Required Supplementary Information Schedule of Revenues Expenditures and Changes in Fund Balances – Budget and Actual: General Fund Notes to Budget and Actual Schedules Schedule of the Proportionate Share of the Net Pension Liability Schedule of the Proportionate Share of the Net OPEB Liability ‐ Health Schedule of the Proportionate Share of the Net OPEB Liability ‐ LTD Schedule of Changes in the Net Pension Liability and Related Ratios Schedule of Changes in the Net OPEB Liability and Related Ratios Schedule of Pension/OPEB Contributions Notes to the Pension/OPEB Plan Schedules 104 106 107 108 109 110 114 118 122 Other Supplementary Information Budgetary Comparison Schedules – Major Governmental Funds Non‐Utility Development Impact Fees – Capital Projects GO Bonds – Capital Projects McDowell Road Commercial Corridor ID – Debt Service Community Facilities Districts – Debt Service 124 125 126 127 Non‐Major Governmental Funds – Financial Statements Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 130 132 Budgetary Comparison Schedules – Non‐Major Governmental Funds Highway User Revenue Community Facilities Districts – General Office of Tourism Prop 302 Grants Ball Park Ambulance Debt Service Community Facilities Districts – Capital 134 135 136 137 138 139 140 141 Budgetary Comparison Schedules – Other Governmental Funds Park and Ride Marquee Court Enhancement Fill‐the‐Gap JCEF Impound AZ Smart and Safe Officer Safety Equipment 144 145 146 147 148 149 150 City of Goodyear, Arizona Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents Financial Section Budgetary Comparison Schedules – Other Governmental Funds One Arizona Opioid Budgetary Comparison Schedules – Enterprise Funds Water & Wastewater Sanitation 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 Page 151 152 153 Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 158 160 167 168 170 172 176 178 183 184 186 187 189 190 192 194 195 196 198 199 200 201 202 206 City of Goodyear Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 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 26, 2024 Honorable Mayor, City Council, City Manager, and Citizens of the City of Goodyear, Arizona: State law requires that 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 be published annually by cities after the close of each fiscal year. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report (ACFR) to the City of Goodyear, Arizona (City) for the fiscal year (FY) ended June 30, 2024. 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. 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, 2024. 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 17‐32 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. Located approximately 17 miles west of the downtown Phoenix business district, Goodyear has sustained continued growth and currently encompasses approximately 191 square miles in the western portion of Maricopa County. The City’s growth is attributable to excellent transportation corridors, convenient access to the central valley, a variety of housing options, a sense of community and outstanding school districts. According to World Population Review data, City of Goodyear’s estimated population for 2024 is 116,460. 1900 N Civic Square Goodyear, AZ 85395 Page 1 goodyearaz.gov 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 staggered 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. In fiscal year 2024 a staff of 947 full‐time equivalent authorized employees working within 16 different departments performed the various functions of Goodyear’s city government. The City provides a full range of municipal services, including police, fire, ambulance, residential sanitation, water, wastewater, streets, recreational programs, parks, cultural events, public transportation, planning and zoning, and general administrative services. Goodyear offers a wide range of community facilities including the Goodyear Ballpark, library, community center, swimming pool, and 20 parks encompassing 252 acres. In addition, Goodyear continues to attract major employers with its location along Interstate 10 and State Route 303, availability of land, access to the entire region, 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 controls 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 eliminated the need for voter approval of Home Rule every four years. Page 2 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 Council has adopted a specific budget transfer policy which delegates the authority to perform many transfers to the City Manager or appropriate designee. The City Manager is generally authorized to transfer budgeted amounts within any specific department’s expenditure appropriation as well as transfers which are considered administrative in nature. Generally, budget revisions requiring a transfer between major program areas in the General Fund, from city reserves/contingencies 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. LOCAL ECONOMIC CONDITION AND OUTLOOK Major industries located within city boundaries or in close proximity include medical and healthcare, data centers, retail stores, advanced manufacturing & logistics, aviation & aerospace, and higher education. Goodyear’s population has surged in recent years due to Goodyear's job opportunities and quality of life, with an estimated population of 116,460 for 2024. Unemployment rates declined from 4.1% to 3.8% in 2024; significantly lower than Phoenix's 6.6% rate and the State’s 6.0% rate. Major employers like Amazon, UPS, and Abrazo Healthcare maintain significant operations in Goodyear, helping sustain Goodyear's economic development. Housing and commercial projects were strong; Goodyear issued 3,319 building permits (residential, commercial, industrial, and multi‐family housing), a reflection of increased demand, double than previous years. Property values also rose, with median home prices exceeding $400,000 by the end of 2024, reflecting both local demand and the broader Phoenix metro area trend. The City has dedicated resources to expanding commercial and industrial developments, including areas like West Goodyear, which aimed to offer mixed‐use spaces for both business and residential needs. In the past year, the City of Goodyear has made significant strides in infrastructure development, particularly with its new downtown district project known as Goodyear Civic Square (GSQ). This major initiative, which broke ground in recent years, is transforming the City’s downtown into a walkable, mixed‐ use area. Other investment infrastructure includes, major new road, and developing utilities and public spaces to accommodate restaurants, retail, and Class A office spaces, elevating its urban infrastructure to meet community needs, which has stimulated the City’s economic and social vitality. Page 3 Sales Tax The City of Goodyear has a significant reliance on city sales tax revenues. Fueled by local growth, sales tax revenues for fiscal year 2024 increased by 32% over fiscal year 2023, with all major sales tax categories showing increases. State Shared Revenues The City receives revenue allocations from the State of Arizona. These state shared revenues include allocations of the state income tax, sales tax, fuel tax, and motor vehicle license tax. 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 18.3% of governmental activities revenue for fiscal year 2024. In total, state shared revenues trended approximately 5.2% higher than the prior year. Property Tax For fiscal year 2024, the City’s combined (primary and secondary) property tax rate remained consistent with the prior year at $1.7350 per $100 of assessed valuation. Property tax collections, however, increased by more than $2.5 million due to an increase in the overall valuation fueled by construction throughout the city. For FY2024, newly constructed properties added $81.5 million of assessed value to the city. Assessed valuation growth of existing properties grew by 2.6% which is in line with state law limiting assessed valuation growth. These property values serve as the base for both Primary and Secondary property taxes and assist in ensuring the city’s ability to service outstanding debt and maintain basic infrastructure. For the fiscal year 2025 budget, the Mayor and Council have adopted a total combined property tax rate of $1.735 per $100 of assessed valuation, which represents no change from fiscal year 2024. In accordance with its budget policies, the City is below the targeted combined property tax rate of $1.74 per $100 of assessed valuation or less. LONG‐TERM FINANCIAL PLANNING On an annual basis, the City Council reviews progress and determines priorities for the City’s long‐ term strategic plan. 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 areas are identified within the FY22‐24 Strategic 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 4 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 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. On November 13, 2023, City Council adopted a new Strategic Plan for FY25‐27, adding a fifth focus area, Infrastructure: The City of Goodyear will strategically plan, implement and maintain current and future infrastructure and facilities to support the community’s quality of life, economic viability and protection of the environment. MAJOR INITIATIVES Goodyear is an award‐winning community that provides a high quality of life with its master‐ planned communities, excellent schools, health care, trail systems and entertainment options, including major league sports venues. Goodyear is an outstanding community for families to grow, businesses to thrive and dreams to turn to reality. The City was recently ranked by the U.S. Census Bureau as being among the fastest growing cities in the country. We enjoy more than 300 days of sunshine a year, affordable housing, a low cost of doing business, and excellent access to transportation. Page 5 In the past year, the City of Goodyear has made notable strides across several major initiatives, many of which are designed to promote economic growth, infrastructure development, and community engagement. 1. Economic Development: The City received multiple awards for excellence in economic development, recognizing its effective projects, events, and marketing initiatives. Additionally, several high‐profile businesses, including WinCo Foods, Shake Shack, and High Tide Seafood Bar & Grill, have committed to opening locations in the City's developing downtown area, GSQ (Goodyear’s city center project). This focus on bringing well‐known brands to Goodyear aims to create a vibrant commercial and social hub for residents and visitors alike. 2. Industrial Expansion: The launch of Cotton Lane Commerce Park and the expansion of Goodyear Crossing underscore Goodyear's investment in industrial infrastructure. These projects are bringing significant new industrial facilities to the city, supporting both local employment and economic diversification. 3. Community Planning: To serve as a roadmap for development over the next decade, the Goodyear General Plan 2035 was approved by voters on May 21, 2024. The plan, which includes input from residents, addresses priorities such as transportation, parks, housing, and economic development to ensure Goodyear continues to meet the needs of its growing population. 4. Sustainable Growth and Environmental Stewardship: Goodyear is actively engaging in sustainable planning, such as water conservation initiatives and innovative infrastructure projects, to manage resources responsibly as the city expands. 5. Infrastructure Development: The City of Goodyear held a Special Bond Election in November 2023 to seek public support and bond funding for major projects related to traffic improvement, public safety, and park projects, which resulted in a General Obligation (GO) Bond program of $232 million for the projects. These initiatives are part of Goodyear's larger strategy to accommodate growth while enhancing the quality of life for its residents and promoting long‐term economic resilience. 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 annual comprehensive financial report for the fiscal year ended June 30, 2023. The City has achieved this prestigious award every year since 2007. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. Page 6 A Certificate of Achievement is valid for one year only. We believe our current annual comprehensive 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, the highest form of recognition in governmental budgeting, for its annual budget document for the fiscal year beginning July 1, 2023. The City has received this award every year since 1994. Acknowledgement The preparation of this Annual Comprehensive 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, City Councilmembers, the City’s Audit Committee, the City Manager’s Office, and all city staff for their continued support in planning and conducting the financial affairs of the City in a responsible and progressive manner. Sincerely, Jared Askelson Finance Director Page 7 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Goodyear Arizona For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO Page 8 GOODYEAR CITY COUNCIL Goodyear has a Council-Manager form of government. Our charter provides for six councilmembers and a mayor – all elected at large on a non-partisan ballot. The Mayor and Council serve four-year terms. The Mayor has a two-term limit and Council a three-term limit. Councilmembers serve staggered terms to ensure continuity. Joe Pizzillo, Mayor Term 2023 – 2026 Laura Kaino, Vice Mayor Term 2019 - 2024 Sheri Lauritano, Councilmember Term 2019 - 2024 Wally Campbell, Councilmember Term 2023 - 2026 Bill Stipp, Councilmember Term 2019 - 2024 Brannon Hampton, Councilmember Term 2023 - 2026 Vicki Gillis, Councilmember Term 2023 - 2026 We represent and serve our community as responsible stewards of the public trust. We envision and shape our future by engaging citizen involvement and fostering city staff innovation. Page 9 Organization Chart Departments (16) Effective: June 2024 Citizens Mayor & Council Municipal Judge Manuel Delgado Jr. City Manager Wynette Reed City Attorney Roric Massey Municipal Court Crystal Whelan Legal Services Deputy City Manager Justin Fair City Manager's Office Deputy City Manager Andy Granger Deputy City Manager Kini Knudson Economic Development Wendy Bridges Digital Communications Tammy Vo Finance Jared Askelson City Clerk Darcie McCracken Human Resources Lyman Locket Fire Paul Luizzi Development Services Katie Wilken Information Technology Lisa Faison Police (Interim) Jeff Mercy Engineering Steve Scinto Parks & Recreation Nathan Torres Water Services Barbara Chappell Public Works Sumeet Mohan Page 10 City of Goodyear Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 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 Page 11 Page 12 Independent Auditor’s Report Honorable Mayor and Members of the City Council City of Goodyear, Arizona Report on Audit of Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City of Goodyear, Arizona, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City of Goodyear, Arizona, and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 13 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:      Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with 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. Page 14 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements and Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. 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 Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on other work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 26, 2024, 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 the City of Goodyear, Arizona’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Goodyear, Arizona’s internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Scottsdale, Arizona November 26, 2024 Page 15 Page 16 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Management is pleased to provide readers of the City of Goodyear, Arizona (City) financial statements this overview and analysis for the fiscal year ended June 30, 2024. This narrative 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) provides a unique focus and serves a different purpose than the letter of transmittal. However, the MD&A is designed to be read in conjunction with the letter of transmittal, the financial statements and the accompanying notes to the financial statements. Financial Highlights  Government‐wide assets and deferred outflows exceeded liabilities and deferred inflows by $1,377 billion (net position) at the close of fiscal year 2024. The unrestricted net position of $270.3 million represents the amount available to meet the City’s ongoing obligations to citizens and creditors.  Net position increased by $161.5 million. This was primarily driven by a $63.8 million net increase in capital assets. The remaining increase is attributable to an increase in unrestricted net position.  As of the close of fiscal year 2024, the City’s governmental funds reported combined fund balances of $404.2 million, an increase of $64.5 million in comparison with the prior year fund balance of $339.7 million. Of this amount, $29.9 million, or 7 percent, is available for spending at the government’s discretion (unassigned fund balance).  As of June 30, 2024, unrestricted fund balance (the total of committed, assigned, and unassigned components of fund balance) for the general fund was $247.7 million, an increase of $39.3 million from the prior fiscal year. Overview of Financial Statements This overview introduces the City’s basic financial statements. The basic financial statements are comprised of three components: 1) government‐wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Page 17 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Overview of Financial Statements Government‐wide financial statements. The government‐wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business. 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, combining the two activities is also provided. The Statement of Net Position presents information on all of the City’s assets, liabilities, deferred inflows/outflow of resources, with the difference reported as 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. 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 intended to recover all or a significant portion of their costs. 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 from the City of Goodyear’s website www.goodyearaz.gov/cfd. 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. Page 18 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Overview of Financial Statements 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 thirteen (13) 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, Non‐Utility Development Impact Fees – Capital Projects, GO Bond – Capital Projects, 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 eight (8) governmental funds are combined into a single, aggregated Non‐major Funds column for presentation. Individual fund data for each of these non‐major governmental funds is provided as Supplementary Information, in the form of combining statements and schedules. The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. Proprietary Funds. The City maintains two (2) different types of proprietary funds (enterprise and internal service), which utilize full accrual accounting, the same method used by private sector business. Enterprise funds are used to report the same functions presented as business‐type activities in the government‐wide financial statements. The City uses separate enterprise funds to account for its Water, Wastewater and Sanitation operations. The proprietary fund financial statements provide the same type of information as the government‐wide financial statements, only in more detail. The City has one internal service fund, the Self‐Insurance Trust. 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. Page 19 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Overview of Financial Statements Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. 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. The Volunteer Firefighter Fund, is used to report resources held in trust for the alternate pension and benefit plan under Arizona Revised Statutes 9‐981 for volunteer reserve firefighters. The Custodial Fund is used to report activities of the Gain, Fill‐a‐Need, Shop with a Cop, and Arizona in Action activities. This Custodial Fund accounts for resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity. 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 progress in funding its obligations to provide pension and OPEB benefits to its employees. Supplementary Information ‐ Budgetary Comparison Schedules ‐ Major Governmental Funds are presented immediately following the Required Supplementary Information. The combining statements referred to earlier in connection with non‐major governmental funds are presented immediately following the Supplementary Information – Budgetary Comparison Schedules – Major Governmental Funds. Budget to actual comparison schedules for the other funds, including the enterprise funds, are presented in the Budgetary Comparison Schedules – Other Funds section. 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, for the year ended June 30, 2024 with comparative information for the previous year. As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. As of June 30, 2024, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.377 billion. This represents positive growth in the City’s net position of $161.5 million over the previous fiscal year. Page 20 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Government‐Wide Financial Analysis Total assets for the primary government grew by $157.5 million, offset by a decrease in total liabilities of $8.2 million. The drivers behind these changes are discussed in more detail within the following sections. Governmental Activities Business‐type Activities Total Primary Government 2024 $ 530,925,299 837,090,009 1,368,015,308 2023 $ 458,417,184 801,337,269 1,259,754,452 2024 $ 147,008,175 480,757,629 627,765,804 2023 $ 110,642,408 467,867,442 578,509,850 Deferred outflows 34,784,220 39,642,180 3,828,249 4,302,979 38,612,469 43,945,159 Current and other liabilities Long‐term liabilities Total liabilities 106,038,099 300,244,338 406,282,437 90,408,134 316,720,572 407,128,706 58,416,472 181,496,589 239,913,061 58,888,368 188,341,627 247,229,995 164,454,571 481,740,927 646,195,498 149,296,502 505,062,199 654,358,701 Deferred inflows 11,298,146 12,439,824 397,005 362,226 11,695,151 12,802,050 592,847,643 547,891,870 303,472,138 284,640,676 896,319,781 832,532,546 37,786,190 21,764,979 7,414,865 39,477,367 124,471,376 221,007,694 985,218,945 6,675,008 42,097,202 98,251,619 184,912,404 $ 879,828,103 447,236 254,713 49,323,710 $ 391,283,987 447,280 257,838 28,109,835 $ 335,220,608 37,786,190 7,414,865 39,924,603 124,726,089 270,331,404 $ 1,376,502,932 21,764,979 6,675,008 42,544,482 98,509,457 213,022,239 $ 1,215,048,711 Current and other assets Capital assets, net Total assets Net position: Net investment in capital assets Restricted for: Capital projects Community facilities Debt service Other purposes Unrestricted Total net position $ $ 2024 677,933,474 1,317,847,638 1,995,781,112 $ 2023 569,059,592 1,269,204,711 1,838,264,302 As shown in the table above, current and other assets for the total primary government increased $108.9 million to $677.9 million as of June 30, 2024. Governmental activities accounted for $72.5 million of the increase, primarily due to an increase in cash and cash equivalents. Mainly from commercial rental and utilities sales taxes, vehicle license fees and urban revenue sharing. The surplus is the result of ongoing revenues outpacing expenditures. Business‐type activities accounted for $36.4 million of the increase, driven by the receipt and recording of a $9 million “in‐lieu payment” for a water/wastewater infrastructure development agreement, $17 million in contributed capital and user service charge revenues of over $11.3 million. Capital assets, net of depreciation, for the total primary government increased by $48.6 million. The increase driven by infrastructure improvements to West Goodyear, the Goodyear Municipal Center and Civic Square Garage, building improvements to renovate the police building and fire station, and addition of water lines in the Estrella Mountain Ranch development area. Deferred outflows decreased by $5.3 million, related to the City’s net pension/other post employment benefits (OPEB) liability and amortization of deferred charges related to bonded debt. Page 21 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Government‐Wide Financial Analysis Current and other liabilities increased by $15.2 million. Governmental activities accounted for $15.6 million of the increase, with an increase of $2.9 million in financial assurance deposits and in‐lieu payments related to development agreements, and a $10.7 million increase in accounts payable, an increase in bond payable of $1.5 million. Business‐type activities decreased $471,896. Long‐term liabilities decreased by $23.3 million, attributable to recognition of the short‐term portion of principal payments due in the upcoming fiscal year. As of June 30, 2024, the largest component of the City’s net position was the net investment in capital assets of $896.3 million (65 percent of total net position). This includes the City’s investment in land and improvements, artwork, construction in progress, right of way, water rights, streetscape, infrastructure, buildings and improvements, vehicles, furniture, and equipment, 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 sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net Position (in millions) 1,000.0 896.3 900.0 832.5 800.0 700.0 600.0 500.0 400.0 300.0 270.3 213.0 209.9 200.0 169.5 100.0 ‐ Unrestricted Restricted 2024 2023 Net investment in capital assets An additional portion of the City’s net position, $209.9 million represents resources that are subject to restrictions on how they may be used. The remaining $270.3 million is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s overall net position increased $161.5 million from the prior fiscal year, as discussed in the following sections for governmental and business‐type activities. Page 22 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Government‐Wide Financial Analysis Governmental Activities 2024 2023 Revenues: Program revenues: Charges for services $ Operating grants and contributions Capital grants and contributions General revenues: City sales taxes Franchise taxes Property taxes State shared revenue Unrestricted 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 Sanitation Total expenses 249,051,327 Net Surplus (Deficit) before Transfers Net Transfers Net Surplus (Deficit) Net position, beginning of the year Changes in net position Net position, ending of the year $ 31,896,162 16,594,202 35,040,767 $ 23,355,814 16,677,690 36,800,110 Business‐type Activities 2024 2023 Total Primary Government 2024 2023 $ 82,175,314 $ 61,807,806 42,036,919 7,594,454 114,071,476 16,594,202 77,077,686 1,093,207 55,251 70,550,718 152,130,402 5,530,796 34,083,996 48,928,158 26,221,229 1,594,135 476,232,080 115,585,674 4,608,000 31,543,708 39,382,895 10,747,301 1,119,478 349,222,930 201,972,506 58,180,836 7,545,696 65,726,532 49,903,049 7,486,417 57,389,466 48,366,196 97,127,666 25,502,886 11,305,561 38,719,469 18,929,987 9,099,562 58,180,836 7,545,696 314,777,859 38,061,902 72,526,205 24,863,132 8,052,159 33,318,763 15,613,064 9,537,281 49,903,049 7,486,417 259,361,972 97,144,342 8,246,500 105,390,842 76,699,706 7,556,001 84,255,707 64,309,879 (8,246,500) 56,063,379 13,161,252 (7,556,001) 5,605,251 161,454,221 ‐ 161,454,221 89,860,958 ‐ 89,860,958 879,828,103 105,390,842 985,218,945 795,572,396 84,255,707 $ 879,828,103 335,220,608 56,063,379 $ 391,283,987 329,615,357 5,605,251 $ 335,220,608 1,215,048,711 161,454,221 $ 1,376,502,932 1,125,187,753 89,860,958 $ 1,215,048,711 152,130,402 5,530,796 34,083,996 48,928,158 20,582,710 1,408,476 346,195,669 115,585,674 4,608,000 31,543,708 39,382,895 9,654,094 1,064,227 278,672,212 48,366,196 97,127,666 25,502,886 11,305,561 38,719,469 18,929,987 9,099,562 38,061,902 72,526,205 24,863,132 8,052,159 33,318,763 15,613,064 9,537,281 5,638,519 185,659 130,036,411 $ $ 85,163,620 16,677,690 44,394,564 Governmental Activities The City’s net position, for governmental activities, totaled $985.2 million at June 30, 2024, which represents an increase of $105.4 million over the prior fiscal year. Despite experiencing extreme inflationary pressures culminating in aggressive interest rate hikes by the Federal Reserve, the United States economy and more specifically the Phoenix metro area economy continues to show its strength and resilience. The City continued to see strong growth and ongoing construction activity in the community resulting in a positive net position, an indicator of the healthy local economy experienced by the City. Total revenues of $346.2 million from governmental activities were $67.5 million more than the prior year, the City continued to experience month over month increases in general and construction sales taxes throughout fiscal year 2024. Tax collections trended higher than the prior year, actual revenues received remained above fiscal year 2024 budgeted revenue. State Shared Income Tax, State Sales Tax, and Franchise Fees of 6 percent, 7 percent and 20 percent, respectively. Additionally, investment earnings for fiscal year 2024 totaled $20.6 million, an increase of 112 percent over the prior fiscal year. Page 23 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Government‐Wide Financial Analysis Fiscal year 2024 expenses, for governmental activities, totaled $249.1 million, an increase of $47.1 million over the prior fiscal year. Expenses increased across all governmental activities, driven primarily by a seven percent market pay increase that was implemented the first pay period of the fiscal year, for all eligible, non‐represented employees as well as the implementation of the final year of the Memorandum of Understanding (MOU) for the represented groups from Police and Fire. The Public Safety and General Government activities experienced the largest expenses, totaling 21 percent and 29 percent of total governmental expenses. The increase in costs were largely driven by the City adding 43 full‐ time equivalent positions in various departments; the biggest labor increase is associated with the addition of 17 sworn and non‐sworn police staff and fire department staff, focused on the City’s efforts to provide in‐house ambulance services. General Government expenses are attributable to the maintenance and operation of stormwater basins, property tax expenses as a result of the Qasimyar legal ruling, and contractual expenses related to development related review and inspections. As show in the chart, revenues generated by the City programs are not sufficient to cover the costs. The City relies on property tax, sales taxes, investment income and other general revenues to cover the costs associated with the various programs. Business‐type Activities The City’s net position, for business‐type activities, totaled $391.3 million, an increase of $56.1 million over the prior fiscal year. Fiscal year 2024 user rates increased slightly by 3 percent compared to last year. Revenues from developer contributions, user fees and investment income represent the biggest increases, while capital improvement project expenses show a significant decrease, resulting in revenues exceeding expenses. The remaining $581,005 increase was attributable to the Sanitation Fund. Fiscal year 2024 revenues were 7 percent higher compared to last year, due to increase customer base and increase in rates, with more efficient management of cost due to increasing economies of scale leading to a positive net position. Page 24 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Financial Analysis of Governmental Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance‐ related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near‐term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council. At June 30, 2024, the City’s governmental funds reported combined fund balances of $404.2 million, an increase of $64.5 million of over the prior fiscal year. Of this amount, $29.9 million, or 7 percent, constitutes unassigned fund balance, which is available for use at the City’s discretion. The remainder of the fund balance is Nonspendable, Restricted, Committed, and Assigned, in the amount of $7.6 million, $145.5 million, $3.9 million and $217.2 million, respectively. Analysis of Individual Funds The general fund is the chief operating fund of the City. As of June 30, 2024, total fund balance increased $43.6 million to $255.2 million. Of this amount, $30.5 million is unassigned. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to the City’s total general fund expenditures of $203.0 million. Unassigned fund balance represents 15 percent of total general fund expenditures, while total fund balance represents 126 percent of that same amount. The fund balance of the City’s general fund increased $43.6 million during fiscal year 2024. The increase was primarily due to $52.0 million increase in assets. More specifically, the increase was in cash and cash equivalents that resulted from the surplus of ongoing revenues vs expenditures in the general fund. As mentioned previously, the surplus was the result of an increase in tax collections. The increase in assets was offset by a $7.4 million increase in accounts payable and development‐ related deposits made by developers. The remaining change was attributable to the amortization of deferred inflows related to leases. Page 25 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Financial Analysis of Governmental Funds The Non‐Utility Development Impact Fee ‐ Capital Projects Fund, a major fund, had an $24.6 million increase in fund balance from the prior year, with a total fund balance of $116.2 million as of June 30, 2024. The increase was the result of a surplus in revenues over expenditures. Development‐ related revenues of $20.8 million increased by 12 percent compared to the prior year. However, capital outlays were less than planned with $16.4 million in expenses related to over a dozen projects. There were four projects that accounted for 76 percent of the costs: the Fire Station 188 West Goodyear, Police Building Phase II, the Sarival Ave‐ Jefferson Street to Yuma projects and Estrella Parkway/Pebblecreek Parkway and I‐10 interchange. The General Obligation – Capital Expenditure Fund, a major fund, had a total fund balance of $15.6 million, a decrease of $3.8 million from the prior fiscal year. The decrease in fund balance was caused by the spending of resources, obtained through the issuance of long‐term debt in a prior period, on capital acquisition and construction in the current period. This included two public safety projects, the Fire Station 183 Renovation & Ambulance facility, and the Police Operations Facility Phase II. The McDowell Road Commercial Corridor – Debt Service Fund, a major fund, had a total fund balance of $187,029, an increase of $17,347 from the prior fiscal year. Special assessment revenue, received for the payment of principal and interest, totaled $2.9 million in fiscal year 2024. Payments of principal and interest totaled $2.9 million. In general, current year receipts are adequate to pay principal and interest. The Community Facilities District – Debt Service fund, a major fund, had a $51,515 increase in fund balance from the prior year, with a total fund balance of $2.7 million as of June 30 ,2024. The surplus is the net result of the following transactions. Revenues related to property tax and special assessments totaled $9.5 million. Principal and interest payments were $9.9 million. During the fiscal year, the Estrella Mountain Ranch Community Facilities District, issued general obligation bonds with a par amount of $11.1 million. As part of the transaction, the City also received $233,800 in contributions from the major landowner. Proceeds in the amount of $11.4 million were used to reimburse a developer for acquiring public infrastructure, and $290,536 was used to pay bond issuance costs. Additionally, the fund received $463,943 thousand in investment income. The Non‐Major Governmental Funds, increased by $40,332 from the prior year, with a total fund balance of $14.3 million, as of June 30, 2024. The following funds ended the fiscal year with a surplus of revenues versus expenditures: Secondary Property Tax ($702,441) and CFD ($739,857). Their surplus was offset by deficit of revenues versus expenditures in the Ball Park Fund ($1.3 million). Page 26 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Financial Analysis of Governmental Funds 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 $391.3 million, an increase of $56.1 million from the previous fiscal year. The net position for Water and Wastewater totaled $385.9 million, an increase of $55.5 million when compared to the prior year. Unrestricted net position for the Water and Wastewater Fund totaled $44.8 million, or 12 percent, at the end of the fiscal year. Revenues for fiscal year 2024 exceeded the anticipated budget. As noted earlier in the discussion of business‐type activities, revenues from charges for services increased by $19.9 million in fiscal year 2024 due to rate changes and volume growth. Development related capital contributions and deposits brought in $34.4 million. Budgeted capital improvement projects of over $111.2 million were deferred which postponed the use of available fund balance to subsequent years and resulted in the increase in net position in fiscal year 2024. Water and Wastewater 200,000,000 150,000,000 100,000,000 50,000,000 ‐ Revenues Actual Operating Expenses Final Budget The net position for Sanitation totaled $5.4 million, an increase of $581,005 when compared to last year. Unrestricted net position for the Sanitation Fund totaled $4.5 million, or 85 percent, at the end of the fiscal year. As noted earlier in the discussion of business‐type activities, there were no major changes to operations, compared to last year. Revenues and expenses for fiscal year 2024 exceed anticipated budget due to increases in pre‐treatment program revenues, thereby resulting in the increase in net position in fiscal year 2024. General Fund Budgetary Highlights The City’s annual budget is the legally adopted expenditure control document of the City. 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. Page 27 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 General Fund Budgetary Highlights Original budget compared to final budget. During the fiscal year, there were budget amendments that transferred a net $14.2 million of budget authority from general fund contingency. The most significant transfers are discussed below. There were $2.9 million of budget amendments that transferred budget authority into general fund contingency. Two CIP projects for the improvements to the Goodyear Municipal Complex and Right‐ of‐Way on Estrella Parkway/I10/MC85, as well as asset and equipment replacements were either deferred to future years or canceled, accounted for $2.6 million of the amendments, or 89 percent of the total amendments into contingency. There were $17.1 million of budget amendments to transfer budget authority out of general fund contingency. A budget amendment in the amount of $2.6 million was approved to design and construct infrastructure to treat 100% of the flows from Perryville Prison. A budget amendment in the amount of $3.0 million was authorized to procure three fire apparatus pumpers ahead of scheduled replacement to mitigate a long lead time and take advantage of vendor discounts. A budget amendment in the amount of $7.0 million was approved related to the project design and construct the expansion Goodyear Water Reclamation Facility to accommodate growth and additional capacity needs in the service area as well as potentially modifying the current treatment process of the existing facility. A budget amendment in the amount of $4.5 million was also completed to move forward the Estrella Parkway/Pebble Creek Parkway and I‐10 Interchange project to add lanes under the overpass in both directions. Final budget compared to actual results. The following table shows the differences between budgeted and actual revenues. Revenue Source Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Contributions Other revenues Total Revenues Page 28 Final Budget Actuals Difference $ 123,722,700 $ 156,891,822 $ 33,169,122 9,804,300 21,774,745 11,970,445 50,239,200 52,139,830 1,900,630 1,938,900 3,514,417 1,575,517 1,068,200 955,574 (112,626) 1,389,600 11,513,120 10,123,520 12,643,300 1,147,662 (11,495,638) 725,000 2,179,747 1,454,747 201,531,200 250,116,917 48,585,717 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 General Fund Budgetary Highlights Tax revenues exceeded budget by $33.2 million, with retail and construction sales tax accounting for $32.1 million. Licenses, permits and fees were $12.0 million more than budget due to Engineering Plan Review and Inspection fees. Intergovernmental revenues exceeded budget by $1.9 million. As previously mentioned, Intergovernmental Revenues trended approximately 3 percent higher than the prior year, with increases in State Shared Income Tax, and State Sales Tax of 3 percent and 4 percent, respectively. Charges for services of $3.5 million exceeded budget by $1.6 million, with $800 thousand of the variance related to Fire Service fees received from the City of Litchfield Park. The remainder of the variance was attributable to higher than expected collections from special interest classes and recreation center passes. Investment income was $10.1 million more than budget with the fiscal year performance of the City’s managed investment portfolio outperforming the benchmark. Permits for single‐family housing are still being issued at high levels, an additional 1,206 permits were issued. Compared to prior year activity our city continues to benefit from growth and is currently estimated at over 106,000 residents. In addition to our residential growth, new businesses continue to locate in Goodyear expanding our one‐time revenues through permit fees, construction sales taxes, and use tax on equipment. Once completed these new and expanding businesses begin to generate ongoing sales and property taxes for the city, as well as local jobs for our residents, which in turn increases our state shared revenues. As shown in the following chart, significant variances between budget versus actual results exist in the Capital Outlay and General Government activities. Actuals expenditures of $42.9 million were $120.6 million less than a budgeted outlay of $163.5 million for capital improvement projects. The two largest variances were $24 million for the Camelback Rd‐SR303 to 152nd Ave project, and $14 million for the construction of Monte Vista Road and Goodyear Way. Budget authority for these and multiple other projects were predominately carried forward to subsequent years. Actual expenditures of $35.7 million were $38.3 million less than a budget of $74.0 million. Approximately $33.6 million, or 88 percent, of the variance is attributable to the budget authority reserved for contingency. After accounting for the reserve, general government expenses of $35.7 million can be compared to a budget of $40.4 million, resulting in a $4.7 million variance. The City Manager’s Office accounts for $2.1 million of the variance, related to community relations and funding expenditures of $801 thousand, $940 thousand in professional services and $339 thousand equipment that are less than budgeted. Page 29 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Capital Assets and Debt Administration Capital Assets The City’s investment in capital assets (net of accumulated depreciation/amortization) for its governmental and business‐type activities as of June 30, 2024 totaled $837.1 million and $480.8 million, respectively. The investment in capital assets include land, land improvements, artwork, construction in progress, right of way, water rights, streetscape, infrastructure, buildings and improvements, vehicles, furniture and equipment, and the rights to use assets (leased assets). In total, there was an increase of $48.6 million from the prior fiscal year. Land and improvements Artwork Construction in progress Right of way Water rights Streetscape Infrastructure Building and improvements Vehicles, furniture and equipment Rights to use assets (leased assets) Total $ $ Governmental Activities 2024 2023 71,353,593 $ 68,944,391 1,186,846 1,008,171 18,809,477 39,877,997 90,875,981 90,981,251 9,061,008 285,637,266 319,366,183 40,766,367 33,288 837,090,009 9,061,008 271,156,358 290,184,000 30,069,744 54,349 $ 801,337,269 $ Business‐type Activities 2024 2023 8,485,127 $ 8,359,054 146,978 146,978 9,026,182 9,117,481 17,926,510 18,116,981 310,554,172 123,727,364 10,891,296 294,395,357 128,719,005 9,012,586 $ 480,757,629 $ 467,867,442 Total Primary Government 2024 2023 $ 79,838,720 $ 77,303,445 1,333,824 1,155,149 27,835,659 48,995,478 90,875,981 90,981,251 17,926,510 18,116,981 9,061,008 9,061,008 596,191,438 565,551,715 443,093,547 418,903,005 51,657,663 39,082,330 33,288 54,349 $ 1,317,847,638 $ 1,269,204,711 Major capital events during fiscal year 2024 included the following:    Construction of Fire Station 188 and the renovation of Fire Station 183. Construction of the Police Operations Facility Phase II. Replacement of water lines in Historic Goodyear. Additional information on the City’s capital assets can be found in Note 4. Debt Administration At the end of the fiscal year, the City had total long‐term debt outstanding of $413.1 million. Of this amount $131.5 million is in general obligation bonds backed by the full faith and credit of the City, $69.3 million is in Community Facilities Districts bonds which are paid by the property owners within those districts, $210.6 million is in revenue bonds which are payable from user fees, assessments, and general fund revenues and $1.6 million in loans payable to Water Infrastructure Finance Authority of Arizona (WIFA) which is payable from user fees. Page 30 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Capital Assets and Debt Administration The following schedule shows the outstanding debt obligation as of June 30, 2024 and 2023: General obligation bonds $ Community facilities districts bonds Lease payable Loan payable Revenue bonds Totals $ Governmental Activities 2024 2023 100,531,663 $ 107,045,363 69,315,000 65,183,000 38,668 60,361 77,580,000 247,465,331 87,545,000 $ 259,833,724 Business‐type Activities 2024 2023 $ 30,993,340 $ 34,294,640 $ 1,600,863 133,030,000 $ 165,624,203 $ 1,902,451 135,100,000 $ 171,297,091 Total Primary Government 2024 2023 131,525,003 $ 141,340,003 69,315,000 65,183,000 38,668 60,361 1,600,863 1,902,451 210,610,000 222,645,000 413,089,534 $ 431,130,815 The State constitution limits the amount of general obligation debt a city may issue to six percent (6 percent) of its total net full cash assessed property valuation. The current six percent debt limitation for the City is $141.9 million. The City has $33.1 million of outstanding revenue obligation bonds subject to the six percent limit. In addition, the State constitution limit allows a city to issue an additional twenty percent (20 percent) of its total net full cash assessed property 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 $472.9 million. The City has $108.3 million of outstanding general obligation debt of which all is subject to the twenty percent limit. During the year, the City maintained the following bond ratings, as of June 30, 2024: Moody's Type of Debt Investors Service General Obligation Aa1 Water & Wastewater Revenue Debt Senior Lien Water & Sewer Revenue Debt Aa3 Aa3 Subordiate Lien Water & Sewer Revenue Deb Aa2 Excise Tax and Public Improvement Corporatio Improvement District Bonds Aa2 Standard & Poor's AA+ Fitch Ratings N/R AA AA‐ AA+ A+ N/R N/R N/R N/R Additional information on the City’s long‐term debt can be found in Notes 6 through 11. Economic Factors and Next Year’s Budget Despite experiencing extreme inflationary pressures culminating in aggressive interest rate hikes by the Federal Reserve, the United States economy and more specifically the Phoenix metro area economy continues to show its strength and resilience. As the economy continues marching further into uncharted waters, the best indicators of future economic performance are current development activity and recent history. In reviewing development currently in progress, with the exception of multi‐family units, we project permit activity to be flat or slightly decrease in FY2025 resulting in slower growth in ongoing revenues and a reduction in one‐time sources. Page 31 City of Goodyear, Arizona Management’s Discussion and Analysis For the Year Ended June 30, 2024 Economic Factors and Next Year’s Budget General Fund revenues remain ahead of our adopted budget and are currently projected to grow at a year over year pace of just over 4%. Continued growth within our city means our workforce needs to grow in tandem to maintain and expand current levels of service. To address these service level needs, our budget adds 35.43 fulltime equivalent (FTE) positions. Accordingly, our FY2025 budget includes additional enhancements designed to keep us competitive while ensuring internal equity between all our employee groups. Our budget includes a merit increase and a market adjustment. At the same time new developments in our city are expanding, mature developments in our City are starting to age. This requires continued investment blending the old with the new to maintain assets and infrastructure ensuring a seamless look and feel throughout our community. The budget fully funded and fully deliverable five‐year Capital Improvement Plan (CIP), which represents $779.4 million of spending over five‐years. Due to the efforts of the citizen bond exploratory committee and the approval of our citizens last fall an additional $232 million of general obligation bond authorization has been incorporated into the City’s long‐term financing strategy. 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 Annual Comprehensive Financial Report is available on‐line at www.goodyearaz.gov. If you have questions about this report or need additional information, contact the City of Goodyear, 1900 N. Civic Square, Goodyear, Arizona 85395 or by email at gyfinance@goodyearaz.gov. Page 32 Basic Financial Statements Page 33 Page 34 Government‐Wide Financial Statements Page 35 Page 36 City of Goodyear, Arizona Statement of Net Position June 30, 2024 Governmental Activities Business‐type Activities Assets Cash and cash equivalents $ 275,022,290 $ Investments 165,083,070 Receivables (net of allowance) 63,532,072 Leases receivable 5,651,718 Inventories 2,360,329 Prepaid items 5,241,347 Notes receivable 1,675,250 Net pension/OPEB asset 1,980,488 Temporarily restricted assets: Cash and cash equivalents 10,378,735 Capital assets (net of accumulated depreciation/amortization): Land 41,741,124 Artwork 1,186,846 Construction in progress 18,809,477 Right of way 90,875,981 Streetscape 9,061,008 Land improvements 29,612,469 Infrastructure 285,637,266 Buildings 319,366,183 Vehicles, furniture, and equipment 40,766,367 Water rights Right to use asset 33,288 Total assets 1,368,015,308 Deferred outflows of resources Deferred outflows related to pensions/OPEB Deferred charge on refunding Total deferred outflows of resources Total 56,086,721 $ 39,898,377 4,860,642 254,713 331,109,011 204,981,447 68,392,714 5,651,718 4,642,838 5,241,347 1,675,250 2,235,201 43,625,213 54,003,948 8,359,054 146,978 9,026,182 627,765,804 50,100,178 1,333,824 27,835,659 90,875,981 9,061,008 29,738,542 596,191,438 443,093,547 51,657,663 17,926,510 33,288 1,995,781,112 30,505,694 4,278,526 34,784,220 1,419,556 2,408,693 3,828,249 31,925,250 6,687,219 38,612,469 29,903,597 1,234,359 2,449,386 38,086,343 510,124 8,032,421 37,936,018 1,234,359 2,449,386 81,706,785 510,124 2,282,509 126,073 310,554,172 123,727,364 10,891,296 17,926,510 Liabilities Accounts payable and other current liabilities Interest payable Claims and judgments payable Deposits held Unearned revenues Noncurrent liabilities: Due within one year Due in more than one year Net pension and OPEB liability ‐ due in more than one year Total liabilities 33,854,290 242,879,975 57,364,363 406,282,437 6,763,609 173,986,092 7,510,497 239,913,061 40,617,899 416,866,067 64,874,860 646,195,498 Deferred inflows of resources Deferred inflows related to pensions/OPEB Leases related Total deferred inflows of resources 5,961,709 5,336,437 11,298,146 397,005 397,005 6,358,714 5,336,437 11,695,151 592,847,643 303,472,138 896,319,781 37,786,190 37,786,190 7,414,865 39,924,603 116,167,515 2,235,201 6,323,373 270,331,404 $ 1,376,502,932 Net position Net investment in capital assets Restricted for: Capital projects Community facilities Debt service Development impact fees Pensions/OPEB Other purposes Unrestricted Total net position Page 37 $ 7,414,865 39,477,367 116,167,515 1,980,488 6,323,373 221,007,694 985,218,945 $ 43,620,442 447,236 254,713 49,323,710 391,283,987 The notes to the basic financial statements are an integral part of this statement. City of Goodyear, Arizona Statement of Activities For the Year Ended June 30, 2024 Program Revenue Operating Grants Capital Grants Functions/Programs 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 $ Charges for and and Expenses Services Contributions Contributions 48,366,196 $ 97,127,666 25,502,886 11,305,561 38,719,469 18,929,987 9,099,562 249,051,327 1,845,268 $ 3,121,684 118,399 157 5,418,613 21,392,041 31,896,162 58,180,836 7,545,696 65,726,532 314,777,859 72,942,490 9,232,824 82,175,314 114,071,476 5,458,839 $ 1,225,770 7,722,795 330,889 342,226 1,513,683 16,594,202 5,460,287 35,040,767 42,036,919 16,594,202 General revenues: Taxes: City sales tax Franchise tax Property tax Auto lieu tax (unrestricted) State sales tax (unrestricted) Urban revenue sharing (unrestricted) Unrestricted investment earnings Other Transfers Total general revenues and transfers Change in net position Net position, beginning of year Net position, end of year Page 38 2,046,781 8,310,708 19,222,991 The notes to the basic financial statements are an integral part of this statement. 42,036,919 77,077,686 Net (Expense) Revenue and Changes in Net Position Governmental Business‐type Activities Activities $ (39,015,308) $ (84,469,504) 1,561,299 (10,974,515) (27,498,343) 2,462,054 (7,585,879) (165,520,196) (165,520,196) $ 152,130,402 5,530,796 34,083,996 4,966,269 16,030,191 27,931,698 20,582,710 1,408,476 8,246,500 270,911,038 105,390,842 879,828,103 985,218,945 $ Page 39 Total $ 56,798,573 1,687,128 58,485,701 58,485,701 (39,015,308) (84,469,504) 1,561,299 (10,974,515) (27,498,343) 2,462,054 (7,585,879) (165,520,196) 56,798,573 1,687,128 58,485,701 (107,034,495) 152,130,402 5,530,796 34,083,996 4,966,269 16,030,191 27,931,698 26,221,229 1,594,135 5,638,519 185,659 (8,246,500) (2,422,322) 268,488,716 56,063,379 161,454,221 335,220,608 1,215,048,711 391,283,987 $ 1,376,502,932 Page 40 Fund Financial Statements Page 41 City of Goodyear, Arizona Balance Sheet Governmental Funds June 30, 2024 General Assets Cash and cash equivalents Investments Receivables: Taxes Interest Accounts Assessments Intergovernmental Leases Due from other funds Inventories Prepaid items Notes receivable Restricted cash and investments Total assets Liabilities Accounts payable Accrued wages and benefits Accrued interest payable Claims and judgments payable Deposits held Due to other funds Bonds payable Unearned revenue Total liabilities $ $ $ Page 42 159,765,130 $ 112,433,178 22,669,326 16,889 3,369,053 19 226,184 5,651,718 273,727 167,397 5,241,347 1,675,250 7,825,425 319,314,643 $ 13,097,983 $ 2,840,359 94,250,774 $ 24,187,580 18,885 $ 15,692,961 27,886 152,259 8,000 15,416,570 118,438,354 $ 15,711,846 $ 2,270,839 $ 121,412 $ 15,604,715 1,581,653 37,896,135 2,026 55,418,156 Deferred inflows of resources Unavailable revenues ‐ property taxes Unavailable revenues ‐ special assessments Unavailable revenues ‐ intergovernmental Unavailable revenues ‐ other Leases related Total deferred inflows of resources Fund balances Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Non‐Utility McDowell Road Development Commercial Impact Fees GO Bonds Capital Corridor ID Debt Projects Capital Projects Service 2,270,839 121,412 4,375 4,375 71,427 15,413,311 3,304,145 5,336,437 8,712,009 $ 15,413,311 5,408,744 2,040,075 116,167,515 15,590,434 187,029 217,203,419 30,532,240 255,184,478 116,167,515 15,590,434 187,029 319,314,643 $ 118,438,354 $ 15,711,846 $ The notes to the basic financial statements are an integral part of this statement. 15,604,715 Community Non‐Major Facilities Districts Governmental Debt Service Funds $ Total Governmental Funds 6,142,731 $ 1,175,939 11,466,607 $ 5,433,910 271,672,013 159,075,827 85,516 133,099 1,012 20,132,028 443,664 22,887,941 16,889 3,821,729 35,548,617 1,095,742 5,651,718 273,727 2,360,329 5,241,347 1,675,250 10,378,735 519,699,864 869,558 2,192,932 $ 2,553,310 30,090,536 $ $ 900 $ 20,539,770 $ 4,149,735 $ 167,056 1,234,359 867,733 190,208 273,727 5,988,000 7,223,259 503,723 6,152,182 59,424 20,131,299 6,684 $ 20,131,299 66,108 2,735,978 2,192,932 8,819,978 3,984,989 19,640,869 3,007,415 1,234,359 2,449,386 38,086,343 273,727 5,988,000 510,124 71,190,223 130,851 35,544,610 6,684 3,304,145 5,336,437 44,322,727 2,735,978 (676,419) 14,321,480 7,601,676 145,541,009 3,984,989 217,203,419 29,855,821 404,186,914 30,090,536 $ 20,539,770 $ 519,699,864 Page 43 Page 44 City of Goodyear, Arizona Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024 Total fund balances ‐ governmental funds $ 404,186,914 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/amortization 1,211,865,585 (374,775,576) 837,090,009 Net OPEB asset is not an available resource and, therefore, is not reported in the funds. Long‐term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable Deferred charged on refunding Leases payable Net pension/OPEB liability Compensated absences 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 1,980,488 (264,072,658) 4,278,526 (38,668) (57,364,363) (12,622,939) (329,820,102) 130,851 35,544,610 6,684 3,304,145 38,986,290 Internal Service Funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities of the Internal Service Funds are included in the Statement of Net Position. Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows of resources related to pensions/OPEB Deferred inflows of resources related to pensions/OPEB 8,251,361 30,505,694 (5,961,709) Net position of governmental activities Page 45 The notes to the basic financial statements are an integral part of this statement. 24,543,985 $ 985,218,945 City of Goodyear, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 Non‐Utility McDowell Road Development Commercial Impact Fees General Revenues Taxes Licenses, permits and fees Intergovernmental revenue Charges for services Fines and forfeitures Investment income Special assessments Contributions Other revenues Total revenues $ GO Bonds Capital Corridor ID Debt Capital Projects 156,891,822 $ 21,774,745 53,234,972 3,734,666 1,076,316 11,660,771 1,147,662 2,179,747 251,700,701 Service Projects 14,416,698 $ $ 20,769,714 5,840,902 1,135,887 10,419 2,906,511 1,101 41,027,314 1,136,988 16,000 2,932,930 Expenditures Current: General government Public safety Highways and streets Public works Culture and recreation Development services Capital outlay Debt service: Principal retirement Interest and fiscal charges Bond issuance costs Total expenditures 203,014,641 16,384,858 4,933,281 2,915,583 Excess (deficiency) of revenues over expenditures 48,686,060 24,642,456 (3,796,293) 17,347 35,715,358 77,788,284 1,105,656 8,307,459 21,295,254 15,883,541 42,891,305 3,918 1,060 16,379,880 4,933,281 21,693 6,091 Other financing sources (uses) Transfers in Transfers out Debt issuance Premium on debt issuance Sale of capital assets Total other financing sources (uses) 2,370,000 545,583 8,246,500 (13,680,402) 323,265 (5,110,637) Changes in fund balances 43,575,423 24,642,456 (3,796,293) 17,347 Fund balances, beginning of year 211,609,055 91,525,059 19,386,727 169,682 255,184,478 $ 116,167,515 $ 15,590,434 $ 187,029 Fund balances, end of year Page 46 $ The notes to the basic financial statements are an integral part of this statement. Community Non‐Major Total Facilities Districts Governmental Governmental Debt Service Funds Funds 13,503,955 $ 191,670,670 21,774,745 62,699,499 28,745,632 1,076,316 20,030,624 5,511,355 2,687,537 2,291,763 336,488,141 $ 6,858,195 $ 9,464,527 4,241,252 463,943 2,604,844 233,800 10,160,782 918,702 1,304,974 96,016 29,529,426 2,290,258 1,338,360 8,044,925 191 6,913,079 15,536,696 14,108,700 6,352,305 6,953,000 2,923,217 290,536 10,166,753 54,584,514 23,453,393 9,827,196 290,536 291,999,630 (5,971) (25,055,088) 44,488,511 25,095,420 57,486 25,095,420 33,341,920 (25,095,420) 11,085,000 387,504 323,265 20,042,269 51,515 40,332 64,530,780 2,684,463 14,281,148 339,656,134 2,735,978 $ 14,321,480 $ 404,186,914 (11,415,018) 11,085,000 387,504 $ 38,009,534 79,127,704 9,150,581 8,307,650 28,208,333 15,883,541 79,741,162 Page 47 Page 48 City of Goodyear, Arizona Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024 Changes in fund balances ‐ total governmental funds $ 64,530,780 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 and reported as depreciation/amortization expense. Capital contributions Capital outlay Less current year depreciation/amortization 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 $ 10,636,944 58,112,649 (32,052,303) 36,697,290 (5,408) (3,390,891) (37,363) 1,628,895 (1,804,767) Issuance of long‐term debt provides current financial resources to governmental funds, but the issuance increases long‐term liabilities in the Statement of Net Position. (11,472,504) 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. Lease principal retirement Bond principal retirement 21,693 23,431,700 23,453,393 Governmental funds report pension/OPEB contributions as expenditures. However, they are reported as deferred outflows of resources in the Statement of Net Position. The change in the net pension/OPEB liability, adjusted for deferred items, is reported as pension/OPEB expense in the Statement of Activities. Current year pension/OPEB contributions Pension/OPEB expense 12,017,010 (15,710,324) (3,693,314) 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. Amortization of deferred charges Loss on disposal of assets Amortization of premiums and discounts Compensated absences (652,391) (944,550) 1,670,561 (2,776,547) (2,702,927) The Internal Service Funds are used by management to charge the cost of certain activities to the individual funds. The changes in net position of the Internal Service Funds are reported with governmental activities in the Statement of Activities. Changes in net position in governmental activities Page 49 The notes to the basic financial statements are an integral part of this statement. 382,891 $ 105,390,842 City of Goodyear, Arizona Statement of Net Position Proprietary Funds June 30, 2024 Governmental Activities Self‐Insurance Business‐type Activities Water & Wastewater Assets Current assets: Cash Investments Receivables (net of allowance) Inventories Total current assets Noncurrent assets: Restricted cash and investments Net pension/OPEB asset Land Artwork Construction in progress Land improvements Infrastructure Buildings Vehicles, furniture, and equipment Water rights Accumulated depreciation Total noncurrent assets Total assets $ 43,625,213 223,717 8,359,054 146,978 9,026,182 127,636 392,725,707 172,615,300 23,902,183 21,088,078 (148,025,963) 523,814,085 620,873,369 Deferred outflows of resources Deferred outflows related to pensions/OPEB Deferred charge on refunding Total deferred outflows of resources Current liabilities: Accounts payable Accrued wages and benefits Claims payable Customer deposits Compensated absences ‐ current portion Loans payable ‐ current portion Bonds payable ‐ current portion Total current liabilities Noncurrent liabilities: Compensated absences Net pension/OPEB liability Loans payable ‐ net of current portion Bonds payable ‐ net of current portion Total noncurrent liabilities Total liabilities Deferred inflows of resources Deferred inflows related to pensions/OPEB Total deferred inflows of resources Net position Net investment in capital assets Restricted for: Capital projects Debt service Pensions/OPEB Unrestricted Total net position Page 50 52,534,234 $ 38,001,896 4,328,852 2,194,302 97,059,284 $ Total Enterprise Trust Internal Funds Service Fund Sanitation 3,552,487 $ 1,896,481 531,790 88,207 6,068,965 30,996 150,522 2,133,163 (1,491,211) 823,470 6,892,435 172,746 56,086,721 $ 39,898,377 4,860,642 2,282,509 103,128,249 43,625,213 254,713 8,359,054 146,978 9,026,182 127,636 392,725,707 172,765,822 26,035,346 21,088,078 (149,517,174) 524,637,555 627,765,804 3,350,277 6,007,243 161,154 9,518,674 9,518,674 1,246,810 2,408,693 3,655,503 172,746 1,419,556 2,408,693 3,828,249 7,273,697 222,711 502,905 33,108 7,776,602 255,819 43,581,122 734,702 307,619 5,592,742 57,712,593 39,320 128,546 43,620,442 863,248 307,619 5,592,742 58,416,472 1,267,313 1,267,313 703,879 149,540 6,596,542 1,293,244 172,500,579 180,539,905 238,252,498 956,684 1,660,563 192,269 7,510,497 1,293,244 172,500,579 181,496,589 239,913,061 348,694 348,694 48,311 48,311 397,005 397,005 302,679,664 792,474 303,472,138 37,786,190 447,236 223,717 44,790,873 385,927,680 $ 42,729 913,955 30,996 4,532,837 5,356,307 $ 37,786,190 447,236 254,713 49,323,710 391,283,987 $ The notes to the basic financial statements are an integral part of this statement. 436,844 258,475 571,994 8,251,361 8,251,361 City of Goodyear, Arizona Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2024 Governmental Activities Self‐Insurance Business‐type Activities Water & Wastewater Operating revenues Charges for services Self insurance premiums Other revenues Total operating revenues $ Total Enterprise Trust Internal Funds Service Fund Sanitation 72,783,209 $ 9,230,840 $ 82,014,049 $ 159,281 72,942,490 1,984 9,232,824 161,265 82,175,314 15,212,922 614,041 15,826,963 Operating expenses Salaries, wages and benefits Cost of sales and services Claims expense Depreciation Total operating expenses 9,884,100 28,579,511 1,239,129 6,132,523 11,123,229 34,712,034 13,933,288 52,396,899 174,044 7,545,696 14,107,332 59,942,595 15,996,158 Operating income (loss) 20,545,591 1,687,128 22,232,719 (169,195) Nonoperating revenues (expenses) Investment income Interest expense and fiscal charges Gain (loss) on sale of assets Total nonoperating revenue (expenses) 5,370,122 (5,783,937) 180,379 (233,436) 268,397 552,086 5,280 273,677 5,638,519 (5,783,937) 185,659 40,241 552,086 Income (loss) before contributions and transfers 20,312,155 1,960,805 22,272,960 382,891 Capital contributions Transfers out 42,036,919 (6,866,700) (1,379,800) 42,036,919 (8,246,500) Changes in net position 55,482,374 581,005 56,063,379 382,891 Total net position, beginning of year 330,445,306 4,775,302 335,220,608 7,868,470 385,927,680 $ 5,356,307 $ 391,283,987 $ 8,251,361 Total net position, end of year Page 51 $ The notes to the basic financial statements are an integral part of this statement. 2,557,151 13,439,007 City of Goodyear, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 Business‐type Activities Water & Wastewater Sanitation Total Enterprise Funds Governmental Activities Self‐Insurance Trust Internal Service Fund 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 72,641,954 $ 9,219,226 $ 81,861,180 $ (29,779,802) (9,144,405) (6,071,751) (1,270,124) (35,851,553) (10,414,529) 33,717,747 1,877,351 35,595,098 (13,669,668) 79,343 Cash flows from investing activities: Sale (purchase) of investments Investment income Net cash provided by/used for investing activities (12,092,316) 5,370,122 (6,722,194) (1,626,928) 268,397 (1,358,531) (13,719,244) 5,638,519 (8,080,725) 2,312,228 552,086 2,864,314 Cash flows from noncapital financing activities: Transfers Net cash provided by/used for noncapital financing activities (6,866,700) (6,866,700) (1,379,800) (1,379,800) (8,246,500) (8,246,500) Cash flows from capital and related financing activities: Principal paid on long‐term debt Interest paid Changes in capital assets Development fees Net cash provided by/used for capital and related financing activities (5,672,888) (6,500,435) (10,055,878) 25,821,759 3,592,558 (280,495) 5,280 (275,215) (5,953,383) (6,495,155) (10,055,878) 25,821,759 3,317,343 Net increase/decrease in cash and cash equivalents 23,721,411 (1,136,195) 22,585,216 2,943,657 Cash and cash equivalents, beginning of year 72,438,036 4,688,682 77,126,718 406,620 96,159,447 $ 3,552,487 $ 99,711,934 $ 3,350,277 20,545,591 $ 1,687,128 $ 22,232,719 $ (169,195) 13,933,288 1,291,733 (776,698) 174,044 21,005 (107,612) 14,107,332 1,312,738 (884,310) (300,536) 268,179 (1,240,177) (3,633) 13,172,156 33,717,747 $ (13,598) (18,477) 80,249 54,612 190,223 1,877,351 $ (314,134) 249,702 (1,159,928) 50,979 13,362,379 35,595,098 $ Cash and cash equivalents, end of year $ $ 15,819,206 (2,070,195) Reconciliation of Operating Income/Loss to Net Cash Provided by/Used for Operating Activities Operating income/loss $ Adjustments to reconcile operating income/loss to net cash provided by/used for operating activities: Depreciation/amortization Pension/OPEB expense Employer pension/OPEB Contributions Changes in assets and liabilities: Increase/decrease in receivables Increase/decrease in inventory Increase/decrease in payables Increase/decrease in accrued liabilities and deposits Total adjustments Net cash provided by/used for operating activities $ Supplemental Disclosure of Non‐Cash Investing, Capital, and Financing Activities Contributions of Capital Assets from Developers $ 16,480,767 Page 52 The notes to the basic financial statements are an integral part of this statement. (7,757) 33,886 222,409 248,538 79,343 City of Goodyear, Arizona Statement of Fiduciary Net Position Fiduciary Funds June 30, 2024 Pension Trust Fund Assets Cash and cash equivalents Mutual funds Exchange traded funds Total assets Net Position Restricted for: Pensions Individuals and organizations Total net position Page 53 $ Custodial Fund $ 222,193 381,743 603,936 55,316 55,316 603,936 $ 603,936 $ 55,316 55,316 The notes to the basic financial statements are an integral part of this statement. City of Goodyear, Arizona Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2024 Pension Trust Fund Additions Investment income Other income Total additions 82,694 $ 4,743 87,437 11,017 11,017 Deductions Benefits Recipient payments Total deductions 159,270 24,919 24,919 Change in net position (71,833) (13,902) Net position, beginning of year 675,769 69,218 603,936 $ 55,316 Net position, end of year Page 54 $ Custodial Fund 159,270 $ The notes to the basic financial statements are an integral part of this statement. 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 57 2. Cash and Investments 69 3. Receivables 73 4. Capital Assets 74 5. Claims and Judgments Payable 75 6. Leases 75 7. Loan Payable 77 8. General Obligation Bonds Payable 77 9. Revenue Bonds Payable 78 10. Community Facilities Districts Bonds Payable 80 11. Changes in Long‐Term Liabilities 82 12. Interfund Receivables, Payables, and Transfers 83 13. Contingent Liabilities 84 14. Risk Management 84 15. Pensions and Other Post Employment Benefits 85 16. Excess of Expenditures Over Appropriations 99 17. Fund Balance Classifications 99 18. Deficit Fund Balances 99 19. Commitments 100 20. Tax Abatement Agreements 101 21. Subsequent Event 102 Page 55 Page 56 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 (hereinafter referred to as generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below. A. Reporting Entity The City is a municipal corporation 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 component units, entities for which the government is considered to be 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.           Page 57 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 Note 1 – Summary of Significant Accounting Policies Complete financial statements of the individual component units may be obtained at the entities’ administrative offices or online at www.goodyearaz.gov/cfd. 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. 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. Basis of Presentation ‐ Fund Financial Statements The fund financial statements provide information about the City’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Fiduciary funds are aggregated and reported by fund type. 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. Page 58 Note 1 – Summary of Significant Accounting Policies Non‐Utility Development Impact Fees Capital Projects ‐ This fund accounts for the capital projects funded with non‐utility development impact fees. GO Bond Capital Projects Fund ‐ This fund accounts for the capital projects financed by general obligation bond debt. 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 fund: Water and Wastewater Fund ‐ This fund accounts for the City’s water and wastewater utility operations, including the utility development impact fees. The City reports the following non‐major proprietary funds: 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 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. The City reports the following fiduciary funds: 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. Custodial Fund – The Custodial Fund is used to report activities of the Gain, Fill‐a‐Need, Shop with a Cop, and Arizona in Action activities. This Custodial Fund accounts for resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity. Page 59 Note 1 – Summary of Significant Accounting Policies D. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of recognition in the financial statements of various kinds of transactions or events. The government‐wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the grantor or provider have been met. The 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 a liability is incurred, as under accrual accounting. However, debt services principal and interest expenditures on general long‐term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, postemployment benefits are recognized later based on specific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long‐term debt and financing through leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year‐end). Expenditure‐driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements 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 City. Page 60 Note 1 – Summary of Significant Accounting Policies E. Budgetary Information 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 2024. 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. 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. F. Assets, Liabilities, Deferred Outflows / Inflows of Resources, and Net Position/Fund Balance 1. Cash and Cash Equivalents The City’s cash and cash equivalents include cash on hand, demand deposits, short‐term investments with original maturities of three months or less from the date of acquisition, and amounts held in trust. The funds held in trust are available to the City up on 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. Page 61 Note 1 – Summary of Significant Accounting Policies 2. 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 investments 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. Additionally, certain resources appropriated to the City for specific projects, are classified as restricted cash and investments on the government‐wide Statement of Net Position because their use is limited by an intergovernmental agreement. The City also restricts the cash and investments in the Community Facilities Districts Debt Service Fund. 3. Investments Investments with a maturity of less than one year when purchased, non‐negotiable certificates of deposit, and other nonparticipating investments are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is the price that would be received to sell an investment in an orderly transaction at year end. 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. The City limits its investments to U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate notes, commercial paper, and money market accounts. 4. Inventory and Prepaid Items 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. 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. Page 62 Note 1 – Summary of Significant Accounting Policies 5. Capital Assets Capital assets are tangible and intangible 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, except for intangible right‐to‐use lease assets, the measurement of which is discussed in note 5. Donated capital assets are recorded at estimated acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of the donation. Intangible assets follow the same capitalization policies as tangible capital assets and are reported with tangible assets in the appropriate capital asset class. 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 accounted for as construction work in progress until completed. Once completed and put into service, projects are capitalized and reported at historical cost (except for intangible right‐to‐use lease assets, the measurement of which is discussed in note 9 below). Land and construction in progress are not depreciated. Artwork or collections presented in buildings and public outdoor spaces are expected to either be maintained at cost or appreciate over time. Thus, artwork is not depreciated. If individual pieces are lost or destroyed, the loss is recorded. The other tangible and intangible property, plant, equipment, the right to use leased equipment, and infrastructure of the primary government are depreciated / amortized using the straight‐line method over the following estimated useful lives: Assets Buildings and Improvements Land Improvements Vehicles, Furniture and Equipment Right‐to‐use leased equipment Infrastructure Water Rights Page 63 Years 7‐50 15 3‐20 5‐20 20‐65 100 Note 1 – Summary of Significant Accounting Policies 6. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in the government‐wide statement of net position, and deferred amounts related to pensions and OPEB. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred amounts related to pension and OPEB related differences between estimated and actual investment earnings, changes in actuarial assumptions, and other pension and OPEB related charges. In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. Deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, other and intergovernmental. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the government‐wide financial statements the City reports deferred amounts related to leases and deferred amounts related to pension and OPEB. 7. Net Position For government‐wide reporting as well as in proprietary funds, the difference between assets and deferred outflow of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted and unrestricted. Page 64  Net investment in capital assets consists of capital assets, net of accumulated depreciation / amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.  Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on assets use either by external parties or by law through constitutional provision or enabling legislation. Note 1 – Summary of Significant Accounting Policies  Unrestricted net position is the net amount of the assets, deferred outflow of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 8. Fund Balance In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called “fund balance.” The City’s governmental funds report the following categories of fund balance, based on the nature of any limitations requiring the use of resources for specific purposes. Page 65  Nonspendable ‐ amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be remain intact.  Restricted ‐ amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors, or by constitutional provisions, or enabling federal, state, or local legislation. Restriction may be changed or lifted only with the consent of the resource provider.  Committed ‐ amounts that can be used only for specific purposes determined by the adoption of an ordinance committing fund balance for a specified purpose by the City Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Council adopts another ordinance to remove or revise the limitation.  Assigned ‐ amounts that are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. Only the City Council or the City’s Finance Director may assign amounts 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. Note 1 – Summary of Significant Accounting Policies  Unassigned ‐ residual amounts for the general fund that is not contained in other classifications. The general fund is the only fund that reports a positive unassigned fund balance. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned. The City’s general fund has unassigned funds consisting of a contingency reserve. 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 2024 on‐going revenues. As previously mentioned, sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted funds to have been depleted before using any of the components of unrestricted fund balance. 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. 9. Leases Lessee: The City is a lessee for a noncancellable lease for the use of parking and storage areas. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $100,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  Page 66 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. Note 1 – Summary of Significant Accounting Policies  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long‐ term debt on the statement of net position. Lessor: The City is a lessor for a noncancellable lease of a licensed areas, fiber optic communications systems, and certain buildings and common areas at the Goodyear Municipal Complex. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 10. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of 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). Page 67 Note 1 – Summary of Significant Accounting Policies 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. 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. 11. 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. 12. 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. 13. 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. Page 68 Note 1 – Summary of Significant Accounting Policies 14. 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. 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. 15. 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. 16. Miscellaneous Disclosures Pursuant to A.R.S. 35‐391(B) the City shall disclose in its annual financial report the amount of any reward, discount, incentive, or other financial consideration received by the government entity resulting from credit card payments. The City received $39,159 in card rebates during the year. Note 2 – Cash and Investments 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”. It is the policy of the City to maintain the maximum safety of principal, maintain liquidity to meet cash flow needs, and provide the highest investment returns. Page 69 Note 2 – Cash and Investments On June 30, 2024, cash and cash equivalents are presented as follows: Cash and cash equivalents Restricted cash and cash equivalents Total Governmental Activities $ 275,022,290 10,378,735 $ 285,401,025 Business Activities $ 56,086,721 43,625,213 $ 99,711,934 Fiduciary Funds $ 55,316 $ 55,316 Total $ 331,164,327 54,003,948 $ 385,168,275 The restricted cash and cash equivalents are proceeds from debt issuances that are held in trustee accounts for the purpose of major capital improvements, funds held in trustee accounts for the purpose of debt service payments, and amounts received from various other entities for specific projects. At June 30, 2024, the City had $12,023 of cash on hand. The carrying amount of the City’s cash in bank totaled $20,804,768, and the bank balance was $21,695,591. Of the bank balance, $250,000 was covered by federal depository insurance, and $21,445,591 was covered by the Statewide Pooled Collateral Program. The City also has $442,287 of cash held by the pledging financial institution’s trust department in the City’s name. Cash Equivalents The City invests in the Local Government Investment Pool 5 and Pool 7 (LGIP) investment pools 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 18 months from the settlement date of the purchase and variable‐rate securities with final maturity less than 2 years. The weighted average to maturity shall not exceed 90 days. The net asset value per share of the pool at June 30, 2024 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, 2024, the City’s funds invested with the State Treasurer totaled $320,731,220. Page 70 Note 2 – Cash and Investments 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. Remaining Maturity (in Years) Investment Type LGIP 5 LGIP 7 Total Total $ $ Investment Type LGIP 5 LGIP 7 Total $ $ Less than 1 2,903,820 317,827,400 320,731,220 $ 2,903,820 317,827,400 320,731,220 $ Total Rating as of Year End 2,903,820 317,827,400 320,731,220 AAAf/S1+ AAA 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). On June 30, 2024, the City’s investments included the following: Remaining Maturity (in Years) Investment Type U.S. Treasuries Federal Agencies Corporate Notes Negotiable Certificates of Deposit Money Market Fund Mutual Funds Total Page 71 $ $ Total 130,058,673 857,283 50,457,017 11,981,207 54,805,244 603,936 248,763,360 $ $ Less than 1 13,005,685 857,283 6,127,290 3,708,769 54,805,244 603,936 79,108,207 $ $ 1 to 2 58,567,381 More than 2 $ 58,485,607 14,931,560 3,641,928 29,398,167 4,630,510 77,140,869 $ 92,514,284 Concentration of Credit Risk 52% 1% 20% 5% 22% 0% 100% Note 2 – Cash and Investments On June 30, 2024, the City’s investment ratings were as follows: Investment Rating A A‐ A+ A‐1 AA AA‐ AA+ AAAm BBB+ Not Rated U.S. Treasuries $ Federal Agency $ 130,058,673 Corporate Notes $ 11,751,480 10,402,187 10,820,124 Negotiable Certificates of Deposit $ 1,850,691 Mutual Funds $ 4,630,510 3,708,769 1,703,253 9,250,815 2,226,057 857,283 Money Market Fund $ 1,791,237 54,757,117 4,303,101 $ 130,058,673 $ 857,283 $ 50,457,017 $ 11,981,207 48,127 $ 54,805,244 $ 603,936 603,936 Total $ 13,602,171 10,402,187 15,450,634 3,708,769 1,703,253 11,042,052 133,142,013 54,757,117 4,303,101 652,063 $ 248,763,360 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, 2024, the average duration to maturity is 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. Although the City’s investment policy states that it will mitigate credit risk it does not impose any specific limitations. 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. Page 72 Note 3 – Receivables Amounts, other than leases receivable, 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: Tax Receivable Interest Receivable Accounts Receivable Special Assessments Receivable Intergovernmental Receivable Lease Notes Receivable Total Receivables General Fund $ 22,669,326 16,889 3,369,053 19 226,184 5,651,718 1,675,250 $ 33,608,439 McDowell Road Commercial Corridor ID Debt Service $ Community Facilities Districts Debt Service $ 85,516 8,000 15,416,570 1,012 20,132,028 Non‐Major Governmental Funds $ 133,099 Self Insurance Fund $ 443,664 161,154 869,558 $ 15,424,570 $20,218,556 $ 1,446,321 $ 161,154 Total $ 22,887,941 16,889 3,982,883 35,548,617 1,095,742 5,651,718 1,675,250 $ 70,859,040 As of June 30, 2024, 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, 2024. Accounts Receivable Less: Allowance Total Receivables Water and Wastewater Fund $ 5,021,431 Sanitation Fund $ 658,405 692,579 4,328,852 126,615 531,790 $ $ $ Total 5,679,836 $ 819,194 4,860,642 Receivables of the Water & Wastewater Fund, Sanitation and Ambulance Fund are reported net of uncollectible amounts. Total bad debt expense related to the Water & Wastewater Fund revenues, Sanitation Fund revenues, and Ambulance Fund revenues for the current year are $104,103, $11,748, and $105,268 respectively. Page 73 Note 4 – Capital Assets A summary of capital assets activity for the fiscal year ended June 30, 2024 follows: 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 Right to use‐asset Total capital assets, being depreciated Less accumulated depreciation for: Land improvements Infrastructure Buildings and improvements Vehicles, furniture and equipment Right to use‐asset Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Business‐type activities: Capital assets, not being depreciated: Land Artwork Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Land improvements Infrastructure Buildings and improvements Vehicles, furniture and equipment Water rights Total capital assets, being depreciated Less accumulated depreciation for: Land improvements Infrastructure Buildings and improvements Vehicles, furniture and equipment Water rights Total accumulated depreciation Total capital assets, being depreciated, net Business‐type activities capital assets, net Page 74 Beginning Balance $ 39,713,528 1,008,171 39,877,997 90,981,251 9,061,008 180,641,955 Increase $ 2,027,596 178,675 13,616,992 Ending Balance Decrease $ $ 34,685,512 105,270 15,823,263 34,790,782 41,741,124 1,186,846 18,809,477 90,875,981 9,061,008 161,674,436 34,997,755 443,265,677 410,195,303 77,159,983 94,775 2,841,553 25,141,626 42,276,278 17,352,385 1,359,874 1,774,312 965,713,493 87,611,842 3,134,186 (5,766,892) (172,109,319) (120,011,303) (47,090,239) (40,426) (345,018,179) 620,695,314 $ 801,337,269 (2,459,947) (10,660,718) (12,281,965) (6,628,612) (21,061) (32,052,303) 55,559,539 $ 71,382,802 (2,294,906) 839,280 $ 35,630,062 (8,226,839) (182,770,037) (131,745,524) (51,971,689) (61,487) (374,775,576) 675,415,573 $ 837,090,009 Beginning Balance Increase Decrease Ending Balance $ 8,359,054 146,978 9,117,481 17,623,513 369,023,682 172,765,822 22,953,612 21,088,078 585,831,194 (74,628,243) (44,046,817) (13,941,026) (2,971,097) (135,587,183) 450,244,011 $ 467,867,524 $ (547,744) (1,747,162) $ 7,011,095 7,011,095 7,102,394 7,102,394 3,294,276 212,542 27,123,937 212,542 (177,341) $ 1,050,191,149 $ 127,636 23,702,025 (1,563) (7,543,292) (4,991,641) (1,380,365) (190,471) (14,107,332) 13,016,605 $ 20,027,700 37,839,308 468,407,303 451,111,707 92,738,056 94,775 (177,341) 35,201 7,137,595 8,359,054 146,978 9,026,182 17,532,214 127,636 392,725,707 172,765,822 26,035,346 21,088,078 612,742,589 (1,563) (82,171,535) (49,038,458) (15,144,050) (3,161,568) (149,517,174) 463,225,415 $ 480,757,629 Note 4 – Capital Assets Depreciation and amortization expense were charged to functions/programs as follows: Governmental activities: General government Public safety Highway and streets Public works Culture and recreation Total depreciation expense $ 2,873,347 4,778,683 16,050,567 1,639,466 6,709,940 $ 32,052,003 Business‐type activities: Water and wastewater Sanitation Total depreciation expense $ $ 13,933,288 174,044 14,107,332 ‐ 14,107,332 Note 5 – Claims and Judgments Payable During fiscal year 2023‐24, the City received notice that the Qasimyar v. Maricopa County, Class Action Judgment had been finalized by the Tax Court. The City, along with all taxing districts in Maricopa County, was affected by the judgment. The Tax Court ruling spanned multiple tax years and, in most cases, resulted in a decrease to the Limited Property Value along with a corresponding refund to individual taxpayers. As a result of the judgment, the County Treasurer’s Office published the estimated financial impact for all taxing districts. The City’s amount is reported as a claims and judgments payable in the General Fund. The Community Facilities District's portion is reported as a claims and judgments payable in the Community Facilities District Special Revenue Fund, a non‐major governmental fund. It is expected that the liability will be paid in the next fiscal year. Note 6 – Leases Lease receivable On July 2, 2021, the City entered into a 192‐month lease as lessor for the use of the Park, Ride, & Bullard Wash Sites. An initial lease receivable was recorded in the amount of $3,668,998. As of June 30, 2024, the value of the lease receivable is $3,209,189. The value of the deferred inflow of resources as of June 30, 2024 was $2,997,918. The lessee is required to make monthly fixed payments of $18,227. The lease has an interest rate of 2.0680%. The City recognized lease revenue of $228,994 and $68,180 in interest revenue during the current fiscal year related to this lease. On July 1, 2021, the City entered into a 45‐month lease as lessor for the use of Fiber Optic Communications. An initial lease receivable was recorded in the amount of $85,639. The lease was paid in full at the end of the year. The City recognized lease revenue of $22,837 and $257 in interest revenue during the current fiscal year related to this lease. Page 75 Note 6 – Leases On November 1, 2021, the City entered into a 120‐month lease as lessor for the use of the Franklin Pierce University Lease. An initial lease receivable was recorded in the amount of $3,335,215. As of June 30, 2024, the value of the lease receivable is $2,442,529. The value of the deferred inflow of resources as of June 30, 2024 was $2,338,519. City will receive monthly payments ranging between $23,563 to of $33,632 over the life of the lease. The lease has an interest rate of 1.6040%. The lessee has a termination period of 60 months as of the lease commencement date. The City recognized lease revenue of $318,889 and $41,312 in interest revenue during the current fiscal year. The future principal and interest lease receivables as of June 30, 2024, were as follows: Principal and Interest Expected to Maturity Fiscal Year 2025 2026 2027 2028 2029 2030 ‐ 2034 2035 ‐ 2038 Governmental Activities Principal Payments Interest Payments Total Payments $ 432,967 $ 102,060 $ 535,027 465,319 94,065 559,384 498,433 85,497 583,930 532,331 76,339 608,670 567,035 66,577 633,612 2,183,941 188,512 2,372,453 971,692 32,655 1,004,347 Lease payable On July 1, 2021, the City entered into a 54‐month lease for the use of Calle Del Pueblo Parking and Storage Facility. An initial lease liability was recorded in the amount of $94,775. As of June 30, 2024, the value of the lease liability was $38,668. The City is required to make monthly payments ranging from $1,250 to $2,250 over the life of the lease. The lease has an interest rate of 1.0590%. The value of the right to use asset as of June 30, 2024 was $94,775 with accumulated amortization of $61,487. The future principal and lease payments as of June 30, 2024, were as follows: Amount of Lease Assets by Major Classes of Underlying Asset Asset Class Infrastructure Total Leases As of Fiscal Year‐end Lease Asset Value $ 94,775 94,775 Accumulated Amortization $ 61,487 61,487 Principal and Interest Requirements to Maturity Governmental Activities Principal Total Fiscal Year Payments Interest Payments Payments 2025 $ 25,210 $ 291 $ 25,501 2026 13,458 42 13,500 Page 76 Note 7 – 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 on June 30, 2024, is as follows: Description Business‐type activities Water Infrastructure Finance Authority Loan Total business‐type activities Interest Rate (Including Fees) Maturity 2.00% 7/1/24‐29 Outstanding Principal June 30, 2024 $ $ 1,600,863 1,600,863 Due Within One Year $ $ 307,619 307,619 Annual debt service requirements to maturity on the loan payable on June 30, 2024 is summarized as follows: Fiscal Year Ending June 30 2025 2026 2027 2028 2029 $ $ Principal 307,619 313,772 320,047 326,448 332,977 1,600,863 $ $ Interest 32,018 25,864 19,590 13,188 6,660 97,320 Note 8 – General Obligation Bonds Payable Bonds payable on June 30, 2024, 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, $276,446,616 remains unissued. The bonds payable on June 30, 2024, are presented below. Purpose Governmental activities: General Obligation Bonds Refunding Series 2016 General Obligation Bonds Series 2017 General Obligation Bonds Series 2019 General Obligation Bonds Series 2021 General Obligation Bonds Series 2022 Total governmental activities Business‐type activities: General Obligation Bonds Refunding Series 2016 General Obligation Bonds Refunding Series 2019 General Obligation Bonds Refunding Series 2020 Total business‐type activities Total Page 77 Interest Rates 2.00‐4.00% 3.00‐5.00% 2.00‐3.00% 3.00‐5.00% 4.00‐5.00% Outstanding Principal June 30, 2024 Remaining Maturities 7/1/24‐37 7/1/27‐37 7/1/24‐38 7/1/24‐40 7/1/24‐41 $ $ 2.00‐4.00% 3.00‐5.00% 3.00‐5.00% 7/1/24‐37 7/1/27‐29 7/1/24‐30 $ $ Due Within One Year 7,481,663 19,275,000 22,085,000 32,100,000 19,590,000 100,531,663 $ 20,983,340 4,105,000 5,905,000 30,993,340 131,525,003 $ 1,777,328 1,000,000 1,025,000 3,955,000 $ 7,757,328 2,552,742 860,000 3,412,742 $ 11,170,070 Note 8 – General Obligation Bonds Payable Annual debt service requirements to maturity on general obligation bonds payable on June 30, 2024, are summarized as follows: Fiscal Year Ending June 30 2025 2026 2027 2028 2029 2030‐34 2035‐39 2040‐44 $ $ Governmental Activities Principal Interest 7,757,328 $ 3,682,430 4,619,262 3,342,586 4,822,406 3,150,716 5,012,547 2,959,644 5,213,346 2,757,218 29,199,601 10,666,342 34,922,173 4,939,192 8,985,000 347,700 100,531,663 $ 31,845,828 Business‐Type Activities Principal Interest $ 3,412,742 $ 1,164,432 3,550,739 1,027,926 3,932,594 885,896 3,577,453 722,618 3,736,654 567,694 8,005,400 1,407,096 4,777,758 290,522 $ 30,993,340 $ 6,066,184 Note 9 – Revenue Bonds Payable Revenue bonds payable on June 30, 2024, consisted of the outstanding revenue bonds and refunding bonds presented on the following table. The bonds are generally callable after 10 years with interest payable semi‐annually. Purpose Governmental activities: Excise Tax Revenue Bond Taxable Excise Tax Revenue Refunding, Series 2021 Total Special Assessment Revenue Bond McDowell Road Commercial Improvement District Refunding Bonds, Series 2018 Total Public Improvement Corporation Municipal Facilities PIC Revenue Refunding Bonds, Series 2016A PIC Revenue Refunding Bonds, Series 2016B Total Direct borrowings or direct placements: Facitilties Revenue Bonds, Series 2017 Total Total governmental activities Business‐type activities: Revenue Bonds, Series 2009 Revenue Bonds, Series 2016 Revenue Bonds, Series 2020 Revenue Bonds, Second Series 2020 Revenue Refunding Bonds, Series 2020 Revenue Refunding Taxable Bonds, Series 2020 Total business‐type activities Total Page 78 Interest Rates Remaining Maturities Outstanding Principal June 30, 2024 Due Within One Year $ $ .210‐1.736% 7/1/24‐27 1.95‐3.60% 1/1/24‐31 15,445,000 15,445,000 2,325,000 2,325,000 3.00‐5.00% 4.00‐5.00% 7/1/28‐32 7/1/24‐31 27,470,000 16,670,000 44,140,000 1,845,000 1,845,000 3% 7/1/24‐27 3,575,000 3,575,000 77,580,000 1,155,000 1,155,000 10,080,000 $ 7% 2.00‐5.00% 2.00‐5.00% 3.00‐4.00% 2.00‐5.00% 1.428‐3.506% 7/1/49 7/1/24‐45 7/1/24‐49 7/1/30‐49 7/1/24‐39 7/1/24‐41 $ 14,420,000 14,420,000 325,000 5,920,000 74,145,000 30,950,000 10,775,000 10,915,000 133,030,000 $ 210,610,000 $ 4,755,000 4,755,000 $ 180,000 1,100,000 $ 385,000 515,000 2,180,000 12,260,000 Note 9 – Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 2025 2026 2027 2028 2029 2030‐34 2035‐39 2040‐44 2045‐49 $ $ Principal 8,925,000 9,150,000 9,400,000 10,025,000 10,460,000 26,045,000 74,005,000 $ $ Governmental Activities Direct Borrowings or Direct Placements Interest Principal Interest 2,597,699 $ 1,155,000 $ 118,332 2,380,961 1,190,000 80,102 2,138,746 1,230,000 40,714 1,869,703 1,407,418 1,636,129 12,030,656 $ 3,575,000 $ 239,148 Business‐Type Activities $ $ Principal 2,180,000 2,245,000 2,615,000 2,970,000 3,095,000 19,500,000 26,920,000 33,795,000 39,710,000 133,030,000 Interest 5,081,934 5,022,782 4,926,268 4,811,616 4,678,470 21,086,164 16,790,988 10,705,560 3,976,890 $ 77,080,672 $ Pledged Revenue A. Revenue Bonds Governmental Activities – The obligations are special revenue obligations of the City. The payments are payable from and secured by a first lien on the excise taxes received by the City. Excise Taxes includes amounts received from the imposition of unrestricted fines and forfeitures, license and permit fees, transaction privilege (sales) taxes, other transaction privilege, excise and business taxes, franchise fees and taxes, bed and rental taxes which the City now or in the future imposes and collects, and all state shared sales and income taxes and state revenue‐sharing collected and allocated or apportioned, now or thereafter. Excise tax does not include revenue from development fees or building permit fees. The last scheduled debt service payment occurring on 7/1/2027. Proceeds of the bonds were used to refund in advance of maturity the Municipal Facilities Revenue Refunding Bonds, Series 2011A. Principal and interest paid for the current year and total pledged revenues were $4,963,370 and $200,317,355, respectively. Business‐Type Activities 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 July 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 $7,577,756 and $35,017,770, respectively. Page 79 Note 9 – Revenue Bonds Payable 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 July 1, 2032. Principal and interest paid, including the refunded bonds, for the current year and total pledged revenues were $5,026,340 and $200,317,355, 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 January 1, 2031. On June 30, 2024, 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 revenues available to service the debt were $2,917,058 and $2,932,930, 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. Note 10 – 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 on June 30, 2024, consisted of outstanding general obligation and special assessment bonds. The bonds are generally callable with interest payable semiannually. Page 80 Note 10 – Community Facilities Districts Bonds Payable In December 2023, the Estrella Mountain Ranch Community Facilities District, issued general obligation bonds with a par amount of $11,085,000 and coupon rates between 4.25 and 5.00 percent. The net proceeds of $11,322,718 included premium of $387,504, an underwriter’s discount of $94,556 and insurance premium of $55,230. Costs of Issuance of $141,500 were funded with Major Landowner Contributions. The general obligation bonds were issued to acquire public infrastructure. Community facilities district bonds payable on June 30, 2024, are presented as follows. Purpose General District No. 1: General Obligation Refunding Bonds, Series 2013 Palm Valley: General Obligation Refunding Bonds, Series 2016 Utilities District No. 1: General Obligation Refunding Bonds, Series 2014 General Obligation Refunding Bonds, Series 2015 General Obligation Refunding Bonds, Series 2016 Wildflower Ranch District 2: General Obligation Bonds, Series 2000 General Obligation Bonds, Series 2001 Estrella Mountain Ranch: Special Assessment Revenue Bonds, Series 2015M2 Special Assessment Revenue Bonds, Series 2015M3 General Obligation Refunding Bonds, Series 2017 Series 2019 Lucero Series 2023 Lucero2 General Obligation Bonds, Series 2023 Total Direct placements: Centerra: General Obligation Refunding Bonds, Series 2016 General Obligation Bonds, Series 2016 Cortina: General Obligation Refunding Bonds, Series 2017 Cottonflower: General Obligation Refunding Bonds, Series 2017 Estrella Mountain Ranch: Special Assessment Revenue Refunding Bonds Series 2018 Desert Village Series 2018 Golf Village 2 Series 2018 Montecito 2 Total direct placements Total Page 81 Interest Rates Remaining Maturities Outstanding Principal June 30, 2024 Due Within One Year $ $ 5% 7/15/24‐7/15/28 3,485,000 910,000 3.00‐4.00% 7/15/24‐7/15/32 3,355,000 385,000 4% 3.00‐4.125% 4% 7/15/24‐7/15/28 7/15/24‐7/15/29 7/15/24‐7/15/32 5,085,000 3,605,000 12,795,000 1,200,000 340,000 755,000 7% 6% 7/15/24‐7/15/25 7/15/24‐7/15/26 55,000 100,000 55,000 55,000 2.50‐5.00% 1.90‐3.75% 3.25‐5.00% 2.60‐4.75% 4.00‐5.75% 4.25‐5.00% 7/1/24‐7/1/39 7/1/24‐7/1/46 7/1/24‐7/1/32 7/1/24‐7/1/43 7/1/24‐7/1/46 7/15/31‐7/15/43 3,552,000 555,000 6,145,000 5,929,000 4,320,000 10,895,000 59,876,000 165,000 20,000 875,000 217,000 115,000 5,092,000 3% 3% 7/15/24‐7/15/31 7/15/24‐7/15/31 1,533,000 288,000 210,000 26,000 3% 7/15/24‐7/15/31 1,095,000 145,000 3% 7/15/24‐7/15/28 815,000 195,000 3% 4% 4% 7/1/24‐7/1/26 7/1/24‐7/1/30 7/1/24‐7/1/31 418,000 2,369,000 2,921,000 9,439,000 $ 69,315,000 226,000 441,000 427,000 1,670,000 6,762,000 $ Note 10 – Community Facilities Districts Bonds Payable Community Facilities District bonds debt service requirements to maturity are as follows: Fiscal Year Ending June 30 2025 2026 2027 2028 2029 2030‐34 2035‐39 2040‐44 2045‐47 Principal 5,092,000 5,240,000 5,395,000 5,240,000 4,840,000 17,477,000 8,577,000 7,310,000 705,000 $ 59,876,000 $ Governmental Activities Direct Borrowings / Placements Interest Principal Interest $ 2,565,894 $ 1,670,000 $ 320,284 2,352,102 1,686,000 264,290 2,146,132 1,555,000 207,674 1,939,486 1,597,000 155,106 1,736,320 1,049,000 101,114 5,868,418 1,882,000 95,606 3,213,262 1,126,898 59,136 $ 21,007,648 $ 9,439,000 $ 1,144,074 Note 11 – Changes in Long‐Term Liabilities Long‐term liabilities activity for the year ended June 30, 2024 was as follows: Beginning Balance Governmental activities: Compensated absences payable Lease liability General obligation bonds payable Community Facilities District bonds payable Direct borrowings or direct placements‐CFD Public improvement bonds payable Direct borrowings or direct placements‐PIC Revenue bonds payable Premiums Discounts Net OPEB liability Net pension liability Governmental activities long‐term liabilities Business‐type activities: Compensated absences payable General obligation bonds payable Revenue bonds payable Loans payable ‐ Direct borrowing Premiums Net OPEB liability Net pension liability Business‐type activities long‐term liabilities Page 82 Additions Reductions Ending Balance Due Within One Year 9,846,392 60,361 107,045,363 53,877,000 11,306,000 45,890,000 4,690,000 36,965,000 17,955,361 (26,309) 24,370 57,352,787 $ 24,836,542 $ 22,059,995 21,693 6,513,700 5,086,000 1,867,000 1,750,000 1,115,000 7,100,000 1,672,205 (1,644) $ $ 9,229,752 25,210 7,757,328 5,092,000 1,670,000 1,845,000 1,155,000 7,080,000 24,356 12,622,939 38,668 100,531,663 59,876,000 9,439,000 44,140,000 3,575,000 29,865,000 16,670,660 (24,665) 35,932 57,328,431 $ 344,986,325 $ 36,320,608 $ 47,208,305 $ 334,098,628 $ 33,854,290 $ $ 2,208,828 $ 2,014,510 3,301,300 2,070,000 301,588 904,193 $ $ 863,248 3,412,742 2,180,000 307,619 $ 1,903 101,560 2,312,291 $ 6,763,609 $ 861,199 34,294,640 135,100,000 1,902,451 14,974,174 4,217 7,402,817 $ 194,539,498 11,085,000 387,504 11,562 $ 8,591,591 1,055,517 30,993,340 133,030,000 1,600,863 14,069,981 6,120 7,504,377 $ 188,260,198 Note 11 – Changes in Long‐Term Liabilities The City’s outstanding notes from direct borrowings and direct placements related to community facilities districts’ debt of $9,439,000 are secured by either (1) an ad valorem tax on all taxable property; (2) an assessment levied on each lot in the assessment district; or (3) a debt reserve fund. These notes contain a provision that in the event of default the interest rate will increase, and the legal rights of the creditor will be enforced. The City’s outstanding notes from direct borrowings and direct placements related to the Public Improvement Corporation’s debt of $3,575,000 are secured by the lease rental payments received pursuant to a Taxable and a Tax‐Exempt Lease Agreement. These outstanding notes contain a provision that in an event of default the interest rate will increase, and the legal rights of the creditor will be enforced. The City’s outstanding note from direct borrowings and direct placements related to the business‐ type activities of $1,600,863 is secured by pledged water and wastewater revenues. This outstanding note contains a provision that in an event of default a late charge of six percent per annum will be charged and the legal rights of the creditor will be enforced. Note 12 – Interfund Receivables, Payables, and Transfers Transfers during the fiscal year were as follows: General Fund Community Facilities Districts Non‐Major Governmental Funds Sanitation Water and Wastewater Fund Total Transfers In $ 8,246,500 Transfers Out $ (13,680,402) (11,415,018) 25,095,420 $ 33,341,920 $ (1,379,800) (6,866,700) (33,341,920) In fiscal year 2024, the General Fund subsidized the Ballpark and Ambulance Funds in the amount of $13.2 million, and $472,853. The transfers were used to cover operations, debt service and capital outlays. The Enterprise Funds transferred $8.2 million to the General Fund for interfund goods and services provided. The transfers between the Community Facilities District Funds of $11.4 million related to the use of bond proceeds to pay for infrastructure constructed by the developer. Interfund balances as of June 30, 2024, is as follows: Due to General Fund Non‐Major Governmental Funds $ $ Page 83 273,727 273,727 $ Due From 273,727 $ 273,727 Note 12 – Interfund Receivables, Payables, and Transfers In fiscal year 2024, the General Fund advanced $264,403 to the Grant Funds to cover expenditures awaiting reimbursement from the granting agencies. The $9,324 owed to the General Fund by the Ambulance Fund was to borrow for negative cash at year‐end. These amounts are expected to be collected in the subsequent year. Note 13 – 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, 2024; 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. Note 14 – 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; injuries to employees; and natural disasters. The City’s property and liability and workers' compensation 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. The City established a Self‐Insurance Trust (an Internal Service Fund) to account for and finance its uninsured risk loss related to healthcare claims. 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 $14,545,659. The Fund purchases commercial insurance for claims in excess of this coverage. Settled claims have not exceeded the annual aggregate in any of the past five fiscal years. Page 84 Note 14 – Risk Management 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 allocations 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: Healthcare Benefits 2023‐24 2022‐23 Claims payable Beginning of Year $ 802,655 663,667 Current Year Claims and Changes in Estimates $ 12,875,685 12,224,977 Claims Payments $ 13,106,346 12,085,989 Claims Payable at End of Year $ 571,994 802,655 Note 15 – 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, 2024, 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 Governmental Activities $ (1,980,488) 57,364,363 30,505,694 5,961,709 15,710,324 Business‐type Activities $ (254,713) 7,510,497 1,419,556 397,005 1,312,738 Total $ (2,235,201) 64,874,860 31,925,250 6,358,714 17,023,062 The City reported $12,017,010 of pension and OPEB contributions as expenditures in the governmental funds related to all plans to which it contributes. Page 85 Note 15 – Pensions and Other Postemployment Benefits 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 cost‐sharing multiple‐employer defined benefit long‐term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on the ASRS website at www.azasrs.gov. Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long‐term 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 30 years, age 55 equals 80 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. Page 86 Note 15 – Pensions and Other Postemployment Benefits 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 $100 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. 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 12.29 percent (12.14 percent for retirement and 0.15 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 12.29 percent (12.03 percent for retirement, 0.11 percent for health insurance premium benefit, and 0.15 percent for long‐ term disability) of the active members’ annual covered payroll. Contributions Pension Health Insurance Premium Long‐Term Disability $ 5,948,626 54,393 74,172 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 9.99 percent (9.94 for retirement and 0.05 percent for long‐term 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 components coming from the General Fund and the Water and Wastewater Fund. Page 87 Note 15 – Pensions and Other Postemployment Benefits Pension and OPEB Assets/Liability. The net pension and OPEB assets/liability were measured as of June 30, 2023. The total liability used to calculate the net asset or net liability was determined using updated procedures to roll forward the total liability from an actuarial valuation as of June 30, 2022, to the measurement date of June 30, 2023. The City’s proportion of the net asset or net 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, 2023. The City’s proportions measured as of June 30, 2023 and the change from its proportions measured as of June 30, 2022 were: Net (Asset) Pension Health Insurance Premium Long‐Term Disability $ Liability 51,571,883 (1,750,444) 42,052 City Increase % Proportion 0.319 0.324 0.321 (Decrease) 0.012 0.011 0.011 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, 2024, the City recognized pension and OPEB expense as follows: Expense Pension Health Insurance Premium Long‐Term Disability $ 9,754,729 (229,064) 36,560 At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Deferred Outflows of Resources Health Insurance Long‐Term Premium Disability Pension Differences between expected and actual experience Changes of assumptions or other inputs Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement date Total Page 88 $ 1,165,319 $ 2,366,290 5,948,626 9,480,235 $ 73,866 $ $ 54,393 128,259 $ 37,968 11,098 23,801 74,172 147,039 Note 15 – Pensions and Other Postemployment Benefits Deferred Inflows of Resources Pension Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings Changes in proportion and differences between contributions and proportionate share of contributions Total $ Health Insurance Premium $ 1,824,658 $ 1,824,658 $ Long‐Term Disability 652,784 $ 34,833 76,883 23,669 61,212 3,365 49,291 1,627 813,791 $ 89,873 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, 2025. 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: 2025 2026 2027 2028 2029 Thereafter Pension $ Health Insurance Premium 1,596,111 $ (1,628,860) 1,966,442 (226,742) (306,220) $ (335,078) (53,849) (48,382) 3,604 Long‐Term Disability (586) (7,528) 4,201 (7,969) (7,566) 2,442 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 Recovery rates Healthcare cost trend rate Page 89 June 30, 2022 June 30, 2023 Entry age normal 7.0% 2.9‐8.4% for pensions/not applicable for OPEB 2.3% Included for pensions/not applicable for OPEB 2017 SRA Scale U‐MP for pensions and health insurance premium benefit 2012 GLDT for long‐term disability Not applicable Note 15 – Pensions and Other Postemployment Benefits The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the five‐year period ended June 30, 2020. The long‐term expected rate of return on ASRS plan investments was determined to be 7.0 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 Public equity Credit Interest rate sensitive Private equity Real estate Total Target Allocation 44% 23% 6% 10% 17% 100% Long‐Term Expected Geometric Real Rate of Return 3.50% 5.90 1.50 6.70 5.90 Discount Rate. At June 30, 2022, the discount rate used to measure the ASRS Total pension/OPEB liability was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona 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 7.0 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 (6.0 percent) or 1‐percentage‐point higher (8.0 percent) than the current rate: Rate Pension Health Insurance Premium Long‐Term Disability Page 90 Proportionate share of the net (assets) liability Current Discount Rate 1% Decrease 1% Increase 6.0% 7.0% 8.0% $ 77,247,107 $ 51,571,883 $ 30,163,289 (1,223,484) (1,750,444) (2,198,243) 61,494 42,052 22,926 Note 15 – Pensions and Other Postemployment Benefits 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. Employees who were PSPRS members before July 1, 2017, participate in the agent plans, and those who became PSPRS members on or after July 1, 2017, participate in the cost‐sharing plans (PSPRS Tier 3 Risk Pool). 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. The PSPRS Tier 3 Risk Pool plan is not further disclosed because of its relative insignificance to the City's financial statements. 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. Years of service and age required to receive benefit Page 91 Retirement Initial Membership Date: Tier 1 Tier 2 20 years of service, any age or 25 years or 15 years of 15 years of service, age 62 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 credited service less than 20 years or plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 1.5 % to 2.5% per year of credited service, not to exceed 80% Note 15 – Pensions and Other Postemployment Benefits Accidental disability retirement 50% or normal retirement, whichever is greater Catastrophic disability retirement Ordinary disability retirement 90% of the first 60 months then reduced to either 62.5% or normal retirement, whichever is greater Survivor benefit: Retired members Active members Normal retirement calculated with actual years of credited service or 20 years of credited service, whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by 20 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 $100 per month to $260 per month depending on the age of the member and dependents. Employees Covered by Benefit Terms. At June 30, 2024 the following employees were covered by the agent plan’s benefit terms: PSPRS ‐ Police Health Insurance Pension Retirees and beneficiaries Inactive, non‐retired members Active members Total PSPRS ‐ Fire 37 30 74 141 37 15 74 126 Health Insurance Pension 19 12 69 100 19 10 69 98 Contributions. State statutes establish the pension contribution requirements for active PSPRS employees. In accordance with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS pension and health insurance premium benefits. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. Contribution rates for the year ended June 30, 2024, are indicated below. Rates are a percentage of active members’ annual covered payroll. Page 92 Note 15 – Pensions and Other Postemployment Benefits Active members ‐ pension City of Goodyear: Pension Health insurance Tier 1 & 2 PSPRS ‐ Police PSPRS ‐ Fire 7.65% to 11.65% 23.24% 0.14% 19.00% 0.34% 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 percent for both police and fire PSPRS. ACR contributions are included in employer contributions presented above. In addition to the current contributions shown below, the City had a prepaid overpayment of $1,265,752 in Fire, and $1,533,416 in Police applied towards its unfunded liability. The contributions to the pension and OPEB plans for the year ended were: Pension Health insurance Contributions PSPRS ‐ Police PSPRS ‐ Fire $ 3,961,170 $ 2,789,185 23,862 49,912 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, 2024, the City reported the following assets and liabilities. Pension Health insurance Net (Asset) Liability PSPRS ‐ Police PSPRS ‐ Fire $ 10,614,302 $ 2,646,623 (333,784) (150,973) The net pension and OPEB assets/liability were measured as of June 30, 2023. The total liability used to calculate the net asset or liability was determined by an actuarial valuation as of that date. Page 93 Note 15 – 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 Tier 1 & 2 Wage inflation Price inflation Cost‐of‐living adjustment Mortality rates Healthcare cost trend rate June 30, 2023 Entry age normal 7.2% 2.75‐15.0% 2.5% 1.85% PubS‐2010 tables Not applicable Actuarial assumptions used in the June 30, 2023, valuation were based on the results of an actuarial experience study for the 5‐year period ended June 30, 2021. The long‐term expected rate of return on PSPRS plan investments was determined to be 7.20 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 U.S. public Equity International Public Equity Global Private Equity Other Assets Core Bonds Private Credit Diversifying Strategies Cash – Mellon Total Target Allocation 24% 16% 20% 7% 6% 20% 5% 2% 100% Long‐Term Expected Geometric Real Rate of Return 3.98% 4.49% 7.28% 4.49% 1.90% 6.19% 3.68% 0.69% Discount Rate. At June 30, 2023, the discount rate used to measure the total pension and OPEB assets/liability was 7.2 percent. Page 94 Note 15 – Pensions and Other Postemployment Benefits 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 assets/liability. Changes in Net (Assets)/Liability Pension Increase (Decrease) PSPRS ‐ Police Balances at June 30, 2023 Change for the year: Service cost Interest on the total liability Differences between expected and actual experience in the measurement of the liability Contributions ‐ employer Contributions ‐ employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes/Adjustments to PY Net changes Balances at June 30, 2024 Page 95 Total (Assets) Liability Plan Fiduciary Net Position Net (Assets) Liability Health Insurance Increase (Decrease) Total Plan (Assets) Fiduciary Net Net (Assets) Liability Position Liability $ 73,733,272 $ 63,247,468 $ 10,485,804 $ 800,908 2,156,220 5,369,439 31,883 59,219 1,978,874 (3,547,221) (814,839) (5,078,423) 97,886 3,547,221 814,839 5,078,423 (2,627,911) (30,556) (33,892) 6,748,124 $ 69,995,592 30,556 33,892 128,498 $ 10,614,302 2,156,220 5,369,439 1,978,874 (2,627,911) 6,876,622 $ 80,609,894 (20,622) 168,366 $ 969,274 $ 1,227,935 $ (427,027) 31,883 59,219 3,656 97,886 (3,656) 92,679 (92,679) (20,622) (590) 590 75,123 $ 1,303,058 93,243 $ (333,784) Note 15 – Pensions and Other Postemployment Benefits Pension Increase (Decrease) PSPRS ‐ Fire Balances at June 30, 2023 Change for the year: Service cost Interest on the total liability Differences between expected and actual experience in the measurement of the liability Contributions ‐ employer Contributions ‐ employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes/Adjustments to PY Net changes Balances at June 30, 2024 Total (Assets) Liability Plan Fiduciary Net Position Net (Assets) Liability Health Insurance Increase (Decrease) Total Plan (Assets) Fiduciary Net Net (Assets) Liability Position Liability $ 73,323,809 $ 69,238,309 $ 4,085,500 $ 880,714 2,272,405 5,357,563 31,665 65,442 1,168,120 (3,918,794) (949,254) (5,584,240) (38,631) 3,918,794 949,254 5,584,240 (2,371,246) (23,501) (191,822) 7,865,719 $ 77,104,028 23,501 191,822 (1,438,877) $ 2,646,623 2,272,405 5,357,563 1,168,120 (2,371,246) 6,426,842 $ 79,750,651 $ $ (112,114) 31,665 65,442 22,844 (38,631) (22,844) 74,817 (74,817) (6,911) (326) 326 90,424 $ 1,083,252 (38,859) $ (150,973) (6,911) 51,565 $ 932,279 992,828 Sensitivity of the Net Pension and OPEB Assets (Liability) to Changes in the Discount Rate. The following presents the City’s net pension and OPEB assets (liability) calculated using the discount rate of 7.2 percent, 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 Page 96 $ 6.20% 22,994,066 (206,947) $ 6.20% 14,935,999 (37,721) Current Discount Rate 1% Increase $ 7.20% 10,614,302 (333,784) $ 8.20% 663,196 (439,356) $ 7.20% 2,646,623 (150,973) 8.20% $ (7,326,485) (246,399) Note 15 – Pensions and Other Postemployment Benefits 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, 2024, the City recognized the following as pension and OPEB expense: Expense PSPRS ‐ Police PSPRS ‐ Fire Pension Health insurance $ 4,111,906 1,062 $ 3,321,033 26,836 Deferred Outflows/Inflows of Resources. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Pension Deferred Deferred Outflows of Inflows of Resources Resources PSPRS ‐ Police Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings on plan investments Contributions subsequent to the measurement date Total $ 4,504,357 921,459 $ 337,776 Page 97 $ 1,131,557 $ 3,961,170 10,518,543 $ 6,126,251 1,294,964 $ 337,776 $ 2,833,319 $ 2,789,185 11,423,815 $ 236,377 5,471 23,862 147,243 $ 241,848 Health Insurance Deferred Deferred Inflows of Outflows of Resources Resources $ 1,213,415 $ 88,571 21,592 13,218 Pension Deferred Deferred Inflows of Outflows of Resources Resources PSPRS ‐ Fire Differences between expected and actual experience Changes of assumptions or other inputs Net difference between projected and actual earnings on plan investments Contributions subsequent to the measurement date Total Health Insurance Deferred Deferred Outflows of Inflows of Resources Resources 7,186 9,535 $ 189,116 28,333 13,483 $ 2,833,319 $ 49,912 80,116 $ 217,449 Note 15 – 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, 2025. 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: 2025 2026 2027 2028 2029 Thereafter PSPRS ‐ Police Health Pension Insurance 1,306,554 (31,706) 877,581 (38,535) 2,457,908 2,158 862,959 (27,475) 714,595 (26,993) 4,084 PSPRS ‐ Fire Health Pension Insurance 1,403,160 (42,969) 938,084 (52,246) 2,556,468 (21,041) 755,357 (36,811) 148,242 (28,659) (5,519) 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 15 years of credited service. This plan was fully vested as of June 30, 2023. As of June 30, 2024, there were four eligible employees participating in the plan. The plan was administered by Cetera Advisor Networks LLC. As of June 30, 2024, the plan’s assets consisted of investments in the amount of $603,936. 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 98 Note 16 – Excess of Expenditures Over Appropriations For the year ended, June 30, 2024, expenditures exceeded the budget at the fund level in two funds. However, this does not constitute a violation of any legal provision. Note 17 – Fund Balance Classifications Fund Balances (deficits): Nonspendable Inventories Prepaid items Restricted Ambulance Capital projects Community facilities districts operations Court Debt service Development impact fees Grants Law enforcement Transit Committed Ball park Assigned Facilities Asset Mgmt Plan Fire asset reserve Fleet replacement IT replacement Risk management Parks management Traffic signal reserve General Fund FY2024 Budget Unassigned Total fund balances General Fund Non Utility Development Impact Fees Capital Projects $ $ 167,397 5,241,347 GO Bonds Capital Projects $ McDowell Road Commerical Corridor ID Debt Service Fund Community Facilities Districts Debt Service Fund Non‐Major Funds Total Governmental Funds $ $ $ $ 2,192,932 406,739 15,590,434 7,414,865 657,069 187,029 2,735,978 950,326 116,167,515 48,048 788,863 594,143 4,366,907 1,303,511 12,852,427 2,058,561 1,131,785 5,814,513 2,200,915 187,474,800 30,532,240 $ 255,184,478 $ 116,167,515 $ 15,590,434 $ 187,029 $ 2,735,978 2,360,329 5,241,347 406,739 15,590,434 7,414,865 657,069 3,873,333 116,167,515 48,048 788,863 594,143 3,984,989 3,984,989 (676,419) $ 14,321,480 4,366,907 1,303,511 12,852,427 2,058,561 1,131,785 5,814,513 2,200,915 187,474,800 29,855,821 $ 404,186,914 Note 18 – Deficit Fund Balances As of June 30, 2024, the Tourism Fund had a deficit of $79,130, revenues in the next fiscal year are expected to eliminate the deficit. Page 99 Note 19 – Commitments Capital Improvement Program (CIP) Commitments The City has active capital improvement projects that are financed from existing fund balances. As of June 30, 2024, the following balances are for work not yet complete: Capital Improvement Program (CIP) Commitments Project 30007 ‐ Fire Station 188 Design Build 30008 ‐ Fire Station 183 Tenant Improvements 30010 ‐ Fire Station 182 Renovation & Battalion Chief Quarters 35002 ‐ Tyler New World Upgrade 40007 ‐ Development Services Permitting System 42026 ‐ Estrella Parkway: Vineyard Avenue to MC85 Roadway Improvements 42027 ‐ Estrella Parkway: PebbleCreek Parkway & I‐10 Interchange 42037 ‐ Yuma Road: Canyon Trails to Sarival Avenue 42038 ‐ Camelback Road: SR 303 to 152nd Avenue 42046 ‐ Cotton Lane: Estrella Parkway to Cotton Lane Bridge 42047 ‐ Lower Buckeye Road & Sarival Avenue 42048 ‐ Sarival Avenue (West Half): Yuma Road to Elwood Street 42050 ‐ Traffic Management Center Parking Lot Improvements 42052 ‐ Bullard Ave. Celebrate Life Way to Roosevelt Street 42058 ‐ McDowell Road: Litchfield Road to Dysart Road 42060 ‐ Traffic Signal: Estrella Parkway & Centerra Drive 42061 ‐ Traffic Signal: 152nd Drive & Van Buren Street 42062 ‐ Traffic Signal: 165th Avenue & Yuma Road 42063 ‐ Traffic Signal: Cotton Lane & Elwood Street/El Cidro Drive 42071 ‐ Civic Square Closeout 42072 ‐ San Gabriel‐ Elliot Interconnect 42077 ‐ Traffic Signal:Estrella Parkway & Lower Buckeye Road 42078 ‐ Traffic Signal‐ Bullard Avenue & Yuma Road 42079 ‐ Traffic Signal: Estrella Parkway & Calistoga Drive 42082 ‐ Traffic Signal: San Gabriel & Elliot 50050 ‐ Loma Linda Site Improvements 60034 ‐ Brine Disposal 60047 ‐ Booster 11 Generator 60075 ‐ Bullard Water Campus Amiad Pre‐Filters Replacement 60077 ‐ Rainbow Valley WRF Plant Design & Expansion 60079 ‐ Integrated Water Master Plan (IWMP) Mid‐Term Update 60093 ‐ Goodyear WRF Blower Replacement 60103 ‐ Corgett WRF Clarifier Rehabilitation & New Clarifier 60105 ‐ Goodyear Municipal Complex Tenant Improvements 60109 ‐ Goodyear WRF Expansion 60110 ‐ Rainbow Valley WRF Expansion 60119 ‐ Municipal Operations Complex Additional Facilities 60122 ‐ GMC Tenant Improvements Building B 61002 ‐ Corgett Wash Sewer Replacements 61004 ‐ Site 13 Motor Control Center Replacement 61006 ‐ Goodyear WRF Blower Replacement 61009 ‐ Booster 12 Generator Replacement 61013 ‐ Perryville Grinder Station 61015 ‐ Improvements to Palo Verde Generating Station (PVNGS) Page 100 Amount 191,249 140,114 310,381 112,141 110,449 3,923,528 11,296,481 55,676 858,262 283,911 269,333 1,472,393 774,108 384,641 589,741 171,692 450,984 6,291 224,481 100,073 69,733 35,721 22,923 10,913 61,170 1,287,094 996,405 590,147 154,631 2,025,233 290,037 589,382 123,551 369,998 1,873,116 817,558 412,399 1,947,921 1,375,349 794,925 24,000 292,751 76,947 396,689 $ 36,364,522 Note 19 – Commitments Encumbrances Encumbrances are employed to effectively plan and control funds for specific items. As of June 30, 2024, the encumbrances to be honored in the next fiscal year have been classified as assigned, unless specified as restricted or committed based on fund nature. Encumbrances Fund General Fund Non‐Utility Development Impact Fees GO Bonds Capital Projects Total Governmental Funds Amount $ 8,526,285 20,942,008 373,856 $ 29,842,149 Water & Wastewater Fund Total Proprietary Funds $ $ 6,522,372 6,522,372 Note 20 – Tax Abatement Agreements Government Property Lease Excise Tax 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, 2024, government property lease agreements the City entered into reduced the City tax revenues by $439,120. Page 101 Note 20 – 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 75,000 square feet building, employ a minimum of 75 full‐ time employees with 51 percent paid 125 percent of the state median annual wage and paid 75 percent 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, 2024, properties within the foreign trade zones reduced the City tax revenues by $570,245. 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, 2024, the one developer agreement reduced City sales tax revenues by $2,993,400. Note 21 – Subsequent Event The City contracted with a consulting firm, on July 1, 2024, to prepare an actuarial valuations report on the new Retiree Healthcare Plan that will become effective on July 1, 2024. The Actuarial Report dated November 19, 2024, indicates an Other Post‐Employment Benefit (OPEB) future liability of $32.7M and an estimated Plan expense of $3.3M for fiscal year 2025. The City plans to set up an irrevocable trust for this purpose by the end of June 30, 2025. Page 102 Required Supplementary Information Page 103 City of Goodyear, Arizona General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Original Revenues Taxes Licenses, permits and fees Intergovernmental revenue Charges for services Fines and forfeitures Investment income Contributions Other revenues Total revenues Expenditures Current: General government: City attorney City clerk City manager Communications Finance Human resources ITS Mayor and council Non‐departmental Reserved for contingency Total general government Public safety: Fire ITS Municipal court Police Total public safety Public works: Administration Building services Fleet services Stormwater Total public works Culture and recreation: Arts and culture Parks Recreation Total culture and recreation Page 104 $ Final Non‐GAAP Actual Variance with Final Budget 123,722,700 $ 9,804,300 50,239,200 1,938,900 1,068,200 1,389,600 12,377,400 725,000 201,265,300 123,722,700 $ 9,804,300 50,239,200 1,938,900 1,068,200 1,389,600 12,643,300 725,000 201,531,200 156,891,822 $ 21,774,745 52,139,830 3,514,417 955,574 11,513,120 1,147,662 2,179,747 250,116,917 33,169,122 11,970,445 1,900,630 1,575,517 (112,626) 10,123,520 (11,495,638) 1,454,747 48,585,717 3,021,700 1,313,600 5,825,400 1,793,700 5,659,700 6,589,800 11,725,100 491,600 3,500,000 47,759,100 87,679,700 3,021,700 1,304,200 5,910,100 1,793,700 5,584,000 6,948,600 11,869,500 491,600 3,500,000 33,571,800 73,995,200 2,721,476 1,034,713 3,804,375 1,636,704 6,669,317 5,809,093 10,704,014 342,267 2,993,399 35,715,358 300,224 269,487 2,105,725 156,996 (1,085,317) 1,139,507 1,165,486 149,333 506,601 33,571,800 38,279,842 31,018,700 10,800 2,418,600 43,045,900 76,494,000 30,952,900 10,800 2,418,600 45,315,400 78,697,700 32,340,369 10,664 1,920,902 43,250,644 77,522,579 (1,387,469) 136 497,698 2,064,756 1,175,121 1,329,300 4,763,000 92,900 963,700 7,148,900 1,329,300 4,913,000 92,900 3,463,700 9,798,900 1,343,044 4,889,008 538,863 1,536,544 8,307,459 (13,744) 23,992 (445,963) 1,927,156 1,491,441 2,074,800 10,987,100 8,401,300 21,463,200 2,074,800 10,996,100 8,656,400 21,727,300 1,944,937 10,318,074 9,032,243 21,295,254 129,863 678,026 (375,843) 432,046 City of Goodyear, Arizona General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Original Development services: Development services Economic development Engineering Total development services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total debt service Total expenditures Final Non‐GAAP Actual Variance with Final Budget 12,464,600 4,157,800 2,800,800 19,423,200 167,838,100 12,569,000 4,538,000 2,800,800 19,907,800 163,515,500 10,945,172 2,491,337 2,447,032 15,883,541 42,891,305 1,623,828 2,046,663 353,768 4,024,259 120,624,195 380,047,100 5,000 5,000 367,647,400 21,693 6,091 27,784 201,643,280 (21,693) (1,091) (22,784) 166,004,120 (178,781,800) (166,116,200) 48,473,637 214,589,837 25,400,500 (34,076,200) 25,400,500 (34,076,200) (8,675,700) (8,675,700) 8,246,500 (12,930,185) 323,265 (4,360,420) (17,154,000) 21,146,015 323,265 4,315,280 Changes in fund balances (187,457,500) (174,791,900) 44,113,217 218,905,117 Fund balances, beginning of year 187,474,800 187,474,800 209,031,186 21,556,386 12,682,900 $ 253,144,403 $ 240,461,503 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Sale of capital assets Total other financing sources (uses) Fund balances, end of year Page 105 $ 17,300 $ See accompanying notes to this schedule. City of Goodyear, Arizona Notes to Required Supplementary Information June 30, 2024 Note 1 – Budgetary Basis of Accounting The City’s 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 expenditures and fund balances at the end of year. Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Activity budgeted as special revenue funds Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund Page 106 Beginning Fund Balance Revenue Expenditures Ending Fund Balance $211,609,055 $251,700,701 $203,014,641 $255,184,478 (2,577,869) (1,583,784) (1,371,361) (2,040,075) $209,031,186 $250,116,917 $201,643,280 $253,144,403 City of Goodyear, Arizona Schedule of the Proportionate Share of the Net Pension Liability Arizona State Retirement System Last Ten Fiscal Years Measurement date 2024 2023 2022 2021 2020 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 0.32% 0.31% 0.28% 0.26% 0.25% Proportion of the net pension (assets) liability Proportionate share of the net pension (assets) liability $ 51,571,883 $ 50,184,300 $ 37,024,641 $ 45,605,133 $ 37,050,173 Covered payroll $ 41,946,720 $ 38,450,304 $ 32,091,131 $ 28,572,110 $ 26,747,686 Proportionate share of the net pension (assets) liability as a percentage of its covered payroll 122.95% 130.52% 115.37% 159.61% 138.52% Plan fiduciary net position as a percentage of the total pension liability 75.47% 74.26% 78.58% 69.33% 73.24% Measurement date 2019 2018 2017 2016 2015 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 0.27% 0.24% 0.24% 0.24% 0.22% Proportion of the net pension (assets) liability Proportionate share of the net pension (assets) liability $ 37,221,762 $ 37,471,443 $ 39,085,443 $ 36,986,742 $ 33,264,817 Covered payroll $ 25,325,110 $ 23,806,419 $ 22,599,315 $ 21,761,494 $ 20,166,769 Proportionate share of the net pension (assets) liability as a percentage of its covered payroll 146.98% 157.40% 172.95% 169.96% 164.95% Plan fiduciary net position as a percentage of the total pension liability 73.40% 69.92% 67.06% 68.35% 69.49% Page 107 See accompanying notes to this schedule. City of Goodyear, Arizona Schedule of the Proportionate Share of the Net OPEB Liability Health Insurance Premium Benefit Arizona State Retirement System Last Seven Fiscal Years Measurement date 2024 2023 2022 2021 2020 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 0.32% 0.31% 0.28% 0.26% 0.26% Proportion of the net OPEB (asset) Proportionate share of the net OPEB (asset) $ (1,750,444) $ (1,747,907) $ (1,400,236) $ (190,345) $ (71,968) Covered payroll $ 41,946,720 $ 38,450,304 $ 32,091,131 $ 28,572,110 $ 26,747,686 Proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll ‐4.17% ‐4.55% ‐4.36% ‐0.67% ‐0.27% Plan fiduciary net position as a percentage of the total OPEB liability 134.37% 137.79% 130.24% 104.33% 101.62% Measurement date 2019 2018 2017 2016 2015 June 30, 2018 June 30, 2017 0 0 0 0.27% 0.24% Proportion of the net OPEB (asset) 0.00% 0.00% 0.00% Proportionate share of the net OPEB (asset) $ (97,837) $ (132,414) $ $ $ Covered payroll $ 25,325,110 $ 23,806,419 $ $ $ Proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll ‐0.39% ‐0.56% Plan fiduciary net position as a percentage of the total OPEB liability 102.20% 103.57% #DIV/0! 0.00% #DIV/0! #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. Page 108 See accompanying notes to this schedule. 0.00% City of Goodyear, Arizona Schedule of the Proportionate Share of the Net OPEB Liability Long‐Term Disability Arizona State Retirement System Last Seven Fiscal Years Measurement date 2024 2023 2022 2021 2020 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 0.32% 0.31% 0.28% 0.26% 0.26% Proportion of the net OPEB (asset) Proportionate share of the net OPEB (asset) $ 42,052 $ 28,587 $ 58,752 $ 202,049 $ 168,210 Covered payroll $ 41,946,720 $ 38,450,304 $ 32,091,131 $ 28,572,110 $ 26,747,686 Proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll 0.10% 0.07% 0.18% 0.71% 0.63% Plan fiduciary net position as a percentage of the total OPEB liability 93.70% 95.40% 90.38% 68.01% 72.85% Measurement date 2019 2018 2017 2016 2015 June 30, 2018 June 30, 2017 0 0 0 0.27% 0.24% Proportion of the net OPEB (asset) 0.00% 0.00% 0.00% Proportionate share of the net OPEB (asset) $ 139,754 $ 87,433 $ $ $ Covered payroll $ 25,325,110 $ 23,806,419 $ $ $ Proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll 0.55% 0.37% Plan fiduciary net position as a percentage of the total OPEB liability 77.83% 84.44% #DIV/0! 0.00% #DIV/0! #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. Page 109 See accompanying notes to this schedule. 0.00% City of Goodyear, Arizona Schedule of Changes in the Net Pension Liability and Related Ratios Public Safety Personnel Retirement System ‐ Police Last Ten Fiscal Years Measurement date Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending $ $ 2024 2023 2022 2021 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 2,156,220 5,369,439 $ 2,160,730 4,963,351 $ 2,208,847 4,586,569 1,666,085 466,330 641,214 1,426,978 (2,627,911) 6,876,622 73,733,272 80,609,894 (2,707,211) 6,549,285 67,183,987 73,733,272 (1,747,026) 5,689,604 61,494,383 67,183,987 (1,609,732) 6,228,595 55,265,788 61,494,383 $ $ $ 69,995,592 $ 63,247,468 $ 62,966,872 Net pension (assets) liability—ending $ 10,614,302 $ 10,485,804 $ 4,217,115 Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension (assets) liability as a percentage of covered payroll Page 110 3,547,221 814,839 5,078,423 $ 4,835,709 802,568 (2,603,517) $ 14,918,307 819,075 11,521,830 $ $ 2,900,958 870,194 479,482 (2,627,911) (2,707,211) (1,747,026) (1,609,732) (30,556) (33,892) 6,748,124 63,247,468 (46,953) (53,304) 280,596 62,966,872 25,458,882 37,507,990 $ (39,094) 17,383 2,619,191 34,888,797 2 37,507,990 $ 23,986,393 86.83% $ 2,269,992 4,141,357 1,978,874 Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Hall/Parker settlement Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Adjustment to beginning of year Plan fiduciary net position—ending $ $ 12,433,902 85.37% 85.78% $ 13,130,356 79.86% 93.72% $ 8,656,917 48.71% 60.99% $ 9,220,411 260.14% $ $ $ 2020 2019 2018 2017 2016 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 2,184,422 3,834,071 $ 2,123,570 3,331,300 $ 1,914,605 2,971,515 456,529 $ 1,437,416 2,477,882 3,357,342 $ 1,278,133 2,301,498 $ 1,278,071 1,966,048 186,683 (759,999) 1,323,823 1,802,331 494,534 824,808 389,465 1,580,891 (159,382) 260,090 1,746,183 (1,887,751) 4,694,566 50,571,222 55,265,788 (1,283,523) 5,973,678 44,597,544 50,571,222 (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 3,042,548 785,605 1,784,598 $ $ (1,887,751) 3,953,950 947,565 1,918,567 $ $ (1,283,523) (1,135,981) (29,900) 66,475 4,437,153 26,773,045 (32,005) 1,633,633 930,370 2,810,340 $ $ 1,597,875 885,129 130,212 $ $ 1,173,950 768,858 739,152 $ $ 1,116,495 704,171 2,311,670 (1,454,686) (1,398,856) (1,107,068) (1,220,650) (25,267) 333,337 4,227,727 22,545,318 (19,137) 167,861 1,363,084 21,182,234 (18,421) (57,781) 1,498,690 19,683,544 (476,423) 2,435,263 17,248,281 $ 3,692,995 31,210,198 (14,396) 34,888,797 $ 31,210,198 $ 26,773,045 $ 22,545,318 $ 21,182,234 $ 19,683,544 $ 20,376,991 $ 19,361,024 $ 17,824,499 $ 16,844,921 $ 10,363,865 $ 9,549,374 63.13% $ 9,600,397 212.25% Page 111 61.72% $ 9,388,019 206.23% 60.03% $ 8,331,614 213.94% 57.24% $ 7,375,148 228.40% 67.15% $ 7,012,489 147.79% 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 Ten Fiscal Years Measurement date Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending $ $ 2024 2023 2022 2021 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 2,272,405 5,357,563 (1,712,464) 3,628,075 69,695,734 73,323,809 (1,234,072) 7,288,798 62,406,936 69,695,734 (885,597) 8,335,833 54,071,103 62,406,936 2,646,623 Page 112 1,996,708 4,060,626 (2,371,246) 6,426,842 73,323,809 79,750,651 $ Net pension (assets) liability as a percentage of covered payroll $ 3,164,096 Net pension (assets) liability—ending 3,918,794 949,254 5,584,240 $ $ 5,297,887 737,175 (2,804,823) $ $ 14,569,689 693,071 12,513,461 $ $ 2,448,698 668,206 531,059 (2,371,246) (1,712,464) (1,234,072) (885,597) (23,501) (191,822) 7,865,719 69,238,309 (50,581) (58,006) (43,297) 26,484,143 41,282,449 $ 1,467,194 67,766,592 4,523 69,238,309 $ 67,766,592 $ 2,719,069 38,563,377 3 41,282,449 $ 4,085,500 $ 1,929,142 $ 21,124,487 96.68% $ 1,944,759 4,652,630 1,925,481 77,104,028 Covered payroll $ (2,181,718) 230,953 $ Plan fiduciary net position as a percentage of the total pension liability 2,111,855 5,179,449 1,168,120 Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Hall/Parker settlement Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Adjustment to beginning of year Plan fiduciary net position—ending $ $ 11,934,516 22.18% 94.43% $ 12,175,244 33.56% 97.23% $ 8,629,914 22.35% 66.15% $ 8,191,627 257.88% $ $ $ 2020 2019 2018 2017 2016 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 1,979,628 3,813,916 $ 2,044,963 3,111,423 $ 1,819,328 2,846,014 208,024 $ 1,558,056 2,121,084 4,046,976 $ 1,409,380 1,822,450 $ 1,405,013 1,640,015 (18,156) (2,153,410) 1,175,572 4,118,805 (389,024) 222,373 1,915,498 1,632,401 1,030,908 (813,497) 619,565 (608,760) 4,206,946 49,864,157 54,071,103 (869,611) 8,405,580 41,458,577 49,864,157 (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 2,107,184 598,158 1,962,666 $ $ (608,760) 3,893,514 905,341 2,135,563 $ $ (869,611) (1,424,092) (33,203) 53,121 4,660,633 29,891,179 (35,097) 1,153,600 1,109,821 3,112,669 $ $ 1,173,975 992,221 141,788 $ $ 968,726 848,048 791,715 $ $ 948,481 754,465 2,374,446 (570,665) (385,270) (680,367) (341,865) (27,942) 301 4,777,784 25,113,395 (20,803) 278,213 2,180,124 22,933,271 (19,707) 304,136 2,212,551 20,720,720 (228,831) 3,506,696 17,214,024 $ 4,024,151 34,551,812 (12,586) 38,563,377 $ 34,551,812 $ 29,891,179 $ 25,113,395 $ 22,933,271 $ 20,720,720 $ 15,507,726 $ 15,312,345 $ 11,567,398 $ 12,209,132 $ 3,500,511 $ 2,130,691 69.29% 71.32% $ 8,445,713 183.62% Page 113 $ 8,787,982 174.24% 72.10% $ 8,028,810 144.07% 67.29% $ 8,217,597 148.57% 86.76% $ 7,822,842 44.75% 90.68% $ 7,338,829 29.03% City of Goodyear, Arizona Schedule of Changes in the Net OPEB Liability and Related Ratios Public Safety Personnel Retirement System ‐ Police Last Seven Fiscal Years 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 pension liability Total OPEB liability—beginning Total OPEB liability—ending $ 2024 2023 2022 2021 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 31,883 59,219 $ 97,886 34,460 59,020 $ (20,622) 168,366 800,908 969,274 $ (77,491) 18,933 (16,101) 18,821 782,087 800,908 $ 3,656 $ 5,364 $ 37,876 55,315 $ 40,698 57,502 (23,230) (103,246) $ (15,483) 54,478 727,609 782,087 $ (7,405) (12,451) 740,060 727,609 $ 21,141 $ 28,426 Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Adjustment to beginning of year Plan fiduciary net position—ending $ 1,303,058 $ 1,227,935 $ 1,290,142 $ 1,008,384 Net OPEB (assets) liability—ending $ (333,784) $ (427,027) $ (508,055) $ (280,775) Plan fiduciary net position as a percentage of the total OPEB liability Covered payroll Net OPEB (assets) liability as a percentage of covered payroll 92,679 (20,622) (590) (50,570) (16,101) (900) 277,240 (15,483) (1,140) 12,337 (7,405) (1,003) 75,123 1,227,935 (62,207) 1,290,142 281,758 1,008,384 32,355 976,029 134.44% $ 12,433,902 (2.68)% 153.32% $ 13,130,356 (3.25)% 164.96% $ 8,656,917 138.59% $ 9,220,411 (5.87)% NOTE: The 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. Page 114 (3.05)% $ 2020 2019 2018 2017 2016 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 27,225 64,999 $ (210,833) 14,776 (14,484) (118,317) 858,377 740,060 $ 30,174 $ 30,980 57,711 $ 11,892 27,494 57,481 3,790 $ (13,196) 87,387 770,990 858,377 $ 4,452 (66,210) (17,372) 9,635 761,355 770,990 $ 17,033 $ 30,113 48,982 (14,484) (846) $ $ $ $ $ $ $ $ $ 87,559 (17,372) (774) 58,322 (13,196) (888) 1 61,272 836,535 $ 63,826 897,807 14,396 976,029 $ 897,807 $ 836,535 $ $ $ $ (235,969) $ (39,430) $ (65,545) $ $ $ 131.89% $ 9,600,397 (2.46)% Page 115 99,526 737,009 104.59% $ 9,388,019 (0.42)% 108.50% $ 8,331,614 (0.79)% #DIV/0! $ #DIV/0! $ #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! City of Goodyear, Arizona Schedule of Changes in the Net OPEB Liability and Related Ratios Public Safety Personnel Retirement System ‐ Fire Last Seven Fiscal Years 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 pension liability Total OPEB liability—beginning Total OPEB liability—ending $ 2024 2023 2022 2021 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 31,665 65,442 $ (38,631) 29,653 63,946 $ (6,911) 51,565 880,714 932,279 $ (54,317) 2,462 (14,694) 27,050 853,664 880,714 $ 22,844 $ 29,367 $ 30,073 61,078 $ 31,919 60,500 (38,999) (61,104) $ (10,196) 41,956 811,708 853,664 $ (10,499) 20,816 790,892 811,708 $ 33,001 $ 26,821 Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Adjustment to beginning of year Plan fiduciary net position—ending $ 1,083,252 $ 992,828 $ 1,018,707 $ 782,811 Net OPEB (assets) liability—ending $ (150,973) $ (112,114) $ (165,043) $ 28,897 Plan fiduciary net position as a percentage of the total OPEB liability Covered payroll Net OPEB (assets) liability as a percentage of covered payroll 74,817 (6,911) (326) (39,843) (14,694) (709) 213,971 (10,196) (880) 9,500 (10,499) (773) 90,424 992,828 (25,879) 1,018,707 235,896 782,811 25,049 757,762 116.19% $ 11,934,516 (1.27)% 112.73% $ 12,175,244 (0.92)% 119.33% $ 8,629,914 96.44% $ 8,191,627 (1.91)% NOTE: The 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. Page 116 0.35% $ 2020 2019 2018 2017 2016 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 19,334 62,411 $ (124,547) 15,548 (11,820) (39,074) 829,966 790,892 $ 28,091 $ 22,849 57,087 $ 2,063 20,875 58,459 375 $ (24,100) 57,899 772,067 829,966 $ 21,035 (94,084) (7,230) (570) 772,637 772,067 $ 22,840 $ 31,049 37,808 (11,820) (653) $ $ $ $ $ $ $ $ $ 66,973 (7,230) (593) 44,799 (24,100) (682) 1 42,858 648,893 $ 53,426 691,751 12,585 757,762 $ 691,751 $ 648,893 $ $ $ $ 33,130 $ 138,215 $ 123,174 $ $ $ 95.81% $ 8,445,713 0.39% Page 117 90,199 558,694 83.35% $ 8,787,982 1.57% 84.05% $ 8,028,810 1.53% #DIV/0! $ #DIV/0! $ #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! City of Goodyear, Arizona Schedule of Pension Contributions All Pension Plans Last Ten Fiscal Years 2024 Arizona State Retirement System: Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll $ 2023 5,948,626 5,948,626 $ $ 49,448,263 $ $ 2021 4,413,873 $ 41,946,720 $ 4,413,873 $ 11.92% 3,690,370 3,690,370 $ 38,450,304 $ 11.48% 32,091,131 11.50% $ 2,928,518 $ 3,492,704 $ 2,918,307 $ 3,918,241 (989,723) $ 5,061,277 (1,568,573) $ 14,918,307 (12,000,000) $ 12,433,902 $ 13,130,356 $ 8,656,917 23.24% Public Safety Personnel Retirement System ‐ Fire: Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) $ Covered payroll Contributions as a percentage of covered payroll 10,391,708 $ 5,000,049 12.03% $ 5,000,049 $ Public Safety Personnel Retirement System ‐ Police: Actuarially determined contribution $ 2,415,033 Contributions in relation to the actuarially determined contribution 3,961,170 Contribution deficiency (excess) $ (1,546,137) Covered payroll Contributions as a percentage of covered payroll $ 2022 23.55% 26.60% 33.71% 2,016,208 $ 2,308,570 $ 2,941,811 $ 2,569,689 2,789,185 (772,977) $ 3,880,738 (1,572,168) $ 5,101,975 (2,160,164) $ 14,569,689 (12,000,000) 10,611,621 $ 11,934,516 $ 12,175,244 $ 8,629,914 19.00% 19.34% 24.16% 29.78% 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. Page 118 2020 $ 2019 3,294,032 $ 3,294,032 $ $ $ 28,572,110 2,900,958 $ $ 31.46% $ 2,448,698 2,448,698 $ $ 26,747,686 3,042,548 9,600,397 2,107,184 29.89% Page 119 $ 25,325,110 3,953,950 9,388,019 24.95% $ 3,893,514 1,633,633 8,331,614 $ 1,153,600 44.30% $ 22,599,315 1,597,875 14.37% 10.89% $ 7,375,148 $ 1,173,975 7,012,489 16.74% $ 1,173,975 $ 1,173,950 1,173,950 21.67% $ 21,761,494 $ $ 8,028,810 $ 1,597,875 $ 2,369,823 2,369,823 10.85% 1,153,600 $ $ $ $ $ 8,787,982 $ 19.61% 3,893,514 $ 23,806,419 1,633,633 $ 2,452,025 2,452,025 10.78% 42.12% $ $ 2015 $ $ $ 8,445,713 $ 3,953,950 $ 2,566,332 2,566,332 10.90% 2,107,184 $ $ 2016 $ $ $ 8,191,627 $ 31.69% $ 2,760,437 2,760,437 3,042,548 $ 2017 $ $ 9,220,411 $ 11.22% 2,900,958 $ $ 3,002,190 3,002,190 11.53% $ 2018 968,726 968,726 $ 8,217,597 14.29% $ 7,822,842 12.38% City of Goodyear, Arizona Schedule of OPEB Contributions All OPEB Plans Last Seven Fiscal Years 2024 ASRS ‐ Health Insurance Premium Benefit Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll ASRS ‐ Long‐term Disability Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll $ $ 54,393 $ $ 49,448,263 74,172 $ $ 23,862 23,862 49,908 41,946,720 31,906 10,391,708 49,912 $ 12,433,902 64,469 69,828 $ 0.54% 0.38% $ 38,450,304 $ 37,876 $ 21,141 13,130,356 $ 30,073 8,656,917 0.24% $ 30,073 $ 21,141 $ 0.29% $ 32,091,131 0.18% 37,876 $ 56,856 56,856 0.18% $ 32,091,131 $ $ 11,934,516 $ 69,828 64,469 $ 38,450,304 $ $ 0.47% $ 122,906 122,906 0.20% 0.26% 49,912 10,611,621 $ 31,906 $ $ $ $ $ 0.23% $ 41,946,720 0.12% $ 77,178 77,178 49,908 $ 2021 $ $ 49,448,263 $ 0.09% 0.15% $ 39,214 39,214 74,172 $ $ 2022 $ 0.11% PSPRS Fire ‐ Health Insurance Premium Benefit Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) $ Covered payroll Contributions as a percentage of covered payroll 54,393 $ PSPRS Police ‐ Health Insurance Premium Benefit Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) $ Covered payroll Contributions as a percentage of covered payroll 2023 33,001 33,001 $ 12,175,244 0.25% $ 8,629,914 0.38% NOTE: The 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. Page 120 2020 $ 2019 140,567 $ 140,567 $ $ 28,572,110 48,822 $ 0.17% $ 28,426 $ $ 26,821 26,821 $ $ 30,174 9,600,397 28,091 0.33% Page 121 $ 25,325,110 0.33% $ $ $ $ $ 23,806,419 $ 0.00% 22,599,315 $ 0.00% 21,761,494 0.00% $ $ $ $ $ $ $ 0.16% $ 17,033 $ $ 9,388,019 22,840 $ 8,331,614 0.26% 22,599,315 $ 0.00% 21,761,494 0.00% $ $ $ $ $ 0.36% $ 31,049 7,375,148 $ 0.00% 7,012,489 0.00% $ $ $ $ 31,049 $ 8,787,982 $ 30,113 22,840 $ 30,113 $ 0.18% $ 23,806,419 0.00% 17,033 $ 8,445,713 $ 40,972 28,091 $ 40,972 $ $ 8,191,627 $ 0.31% $ 25,325,110 $ 26,747,686 2015 $ 0.57% 30,174 0.31% $ 42,908 $ 9,220,411 $ 0.16% 28,426 $ $ 26,747,686 42,908 $ 143,399 2016 143,399 0.46% $ 2017 $ $ 28,572,110 $ 123,288 48,822 $ $ 123,288 $ 0.49% $ 2018 $ 8,028,810 0.39% $ 8,217,597 0.00% $ 7,822,842 0.00% City of Goodyear, Arizona Required Supplementary Information Notes to Pension/OPEB Plan Schedules June 30, 2024 Note 1 – 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, 2022 valuation for ASRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2020. 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, 2020, actuarial valuation. The actuarial assumptions used in the June 30, 2023 valuation for PSPRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2021. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The PSPRS Board adopted the experience study recommended changes which were applied to the June 30, 2022 actuarial valuation. Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS changed benefit terms to reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to explicitly value future permanent benefit increases. PSPRS also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date. These changes also increased the PSPRS required contributions beginning in fiscal year 2016 for members who were retired as of the law’s effective date. These changes increased the required contributions beginning in fiscal year 2019 for members who retired or will retire after the law's effective date. Page 122 Supplementary Information Budgetary Comparison Schedules Major Governmental Funds Capital Projects Funds  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 Fund – This fund accounts for the proceeds and interest of the sale of voter‐ approved general obligation bonds that are used for authorized improvements. Debt Service Funds  McDowell Road Commercial Corridor ID Fund – This fund accounts for the debt portion of the McDowell Road Improvement District.  Community Facilities Districts 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 property with each District’s boundaries. Page 123 City of Goodyear, Arizona Non‐Utility Development Impact Fees Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Revenues Taxes Charges for services Investment income Total revenues $ Variance with Final Budget Original Final Actual 6,713,100 $ 14,991,600 6,713,100 $ 14,991,600 21,704,700 21,704,700 14,416,698 $ 20,769,714 5,840,902 41,027,314 7,703,598 5,778,114 5,840,902 19,322,614 6,903,482 (1,060) 37,097,620 44,000,042 63,322,656 Expenditures Current: General government Public safety Capital outlay Total expenditures 6,907,400 6,907,400 55,502,000 62,409,400 53,477,500 60,384,900 3,918 1,060 16,379,880 16,384,858 Excess (deficiency) of revenues over (under) expenditures (40,704,700) (38,680,200) 24,642,456 Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) 7,924,300 (7,924,300) 7,924,300 (7,924,300) Changes in fund balances (40,704,700) (38,680,200) 24,642,456 63,322,656 Fund balances, beginning of year 90,440,900 90,440,900 91,525,059 1,084,159 49,736,200 $ 51,760,700 $ 116,167,515 $ 64,406,815 Fund balances, end of year Page 124 $ (7,924,300) 7,924,300 City of Goodyear, Arizona GO Bonds Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Investment income Contributions Other revenues Total revenues 13,829,500 13,829,500 1,136,988 Expenditures Capital outlay Total expenditures 75,291,100 75,291,100 69,363,600 69,363,600 4,933,281 4,933,281 64,430,319 64,430,319 Excess (deficiency) of revenues over (under) expenditures (60,291,100) (55,534,100) (3,796,293) 51,737,807 Other financing sources (uses) Debt issuance Total other financing sources (uses) 40,000,000 40,000,000 40,000,000 40,000,000 Changes in fund balances (20,291,100) (15,534,100) (3,796,293) 11,737,807 Fund balances, beginning of year 20,291,100 20,291,100 19,386,727 (904,373) 4,757,000 $ 15,590,434 $ Page 125 $ $ 1,135,887 $ 1,101 Final Budget 15,000,000 15,000,000 $ $ Actual 1,135,887 1,101 (13,829,500) (12,692,512) Fund balances, end of year $ Final (40,000,000) (40,000,000) 10,833,434 City of Goodyear, Arizona McDowell Road Commericial Corridor ID Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Investment income Special assessments Other revenues Total revenues $ Expenditures Debt service: Principal retirement Interest and fiscal charges Total expenditures Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 126 $ Final $ Actual $ Final Budget 3,937,800 10,419 2,906,511 16,000 2,932,930 10,419 (1,031,289) 16,000 (1,004,870) 3,360,000 578,800 3,938,800 3,360,000 578,800 3,938,800 2,370,000 545,583 2,915,583 990,000 33,217 1,023,217 (1,000) (1,000) 17,347 18,347 934,900 934,900 169,682 (765,218) 933,900 $ 933,900 $ 187,029 $ (746,871) 3,937,800 3,937,800 3,937,800 City of Goodyear, Arizona Community Facilities Districts Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Taxes Investment income Special assessments Contributions Total revenues $ Final Budget Final Actual 6,964,400 $ 1,600 3,401,300 6,964,400 $ 1,600 3,401,300 10,367,300 10,367,300 6,858,195 $ 463,943 2,604,844 233,800 10,160,782 (106,205) 462,343 (796,456) 233,800 (206,518) 606,000 1,170,883 (290,536) 1,486,347 Expenditures Capital outlay Debt service: Principal retirement Interest and fiscal charges Bond issuance costs Total expenditures 7,559,000 4,094,100 7,559,000 4,094,100 11,653,100 11,653,100 6,953,000 2,923,217 290,536 10,166,753 Excess (deficiency) of revenues over (under) expenditures (1,285,800) (1,285,800) (5,971) 1,279,829 9,100 9,100 (9,100) (11,415,018) 11,085,000 387,504 48,386 Other financing sources (uses) Transfers in Transfers out Debt issuance Premium on debt issuance Total other financing sources (uses) 9,100 9,100 (11,415,018) 11,085,000 387,504 57,486 Changes in fund balances (1,276,700) (1,276,700) 51,515 1,328,215 Fund balances, beginning of year 1,276,700 1,276,700 2,684,463 1,407,763 2,735,978 $ 2,735,978 Fund balances, end of year Page 127 $ $ $ Page 128 Supplementary Information Combining Statements And Budgetary Comparison Schedules 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 benefiting the community.  Office of Tourism Prop 302 – Used to account for restricted funds to support Maricopa County tourism, marketing, and promotion.  Grants Fund – Based on applications 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.  Ambulance – This fund accounts for the charges and operations of ambulance services within the City. Debt Service Funds  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. Capital Projects Funds  Page 129 Community Facilities Districts Fund – This fund accounts for the capital portion of the City’s Community Facilities Districts, which are component units that provide general infrastructure and capital assets for property with each District’s boundaries. City of Goodyear, Arizona Combining Balance Sheet Non‐Major Governmental Funds June 30, 2024 Special Revenue Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Intergovernmental Inventories Total assets Liabilities Accounts payable Accrued wages and benefits Claims and judgments payable Deposits held Due to other funds Unearned revenue Total liabilities Highway User Community Office of Tourism Revenue Facilities Districts Prop 302 $ 1,809,232 $ 8,264,075 $ 75,311 $ $ $ 755,656 2,192,932 4,757,820 $ 2,416,186 $ 52,060 113,902 8,289,892 $ 75,311 $ 393,715 7,294 $ 154,441 $ 74,580 867,733 190,208 264,403 503,723 3,162,177 875,027 154,441 338,983 6,684 6,684 Fund balances (deficits) Nonspendable Restricted Committed Unassigned Total fund balances (deficits) Page 130 279,813 25,587 230 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 (deficits) Grants 2,192,932 7,414,865 $ (597,289) 1,595,643 4,757,820 $ 48,048 7,414,865 (79,130) (79,130) 48,048 8,289,892 $ 75,311 $ 393,715 Special Revenue Total Non‐Major Governmental Ball Park Special Revenue $ Ambulance 138,751 $ 5,431,097 Funds Debt Service $ 899,425 $ 2,813 11,466,607 5,433,910 107,512 133,099 443,664 869,558 2,192,932 20,539,770 443,434 $ 5,569,848 $ 443,434 $ 1,009,750 $ $ 1,488,402 $ 96,457 8,832 $ 18,539 $ 9,324 1,584,859 36,695 59,424 59,424 59,424 6,684 66,108 406,739 950,326 3,984,989 406,739 950,326 2,192,932 8,819,978 3,984,989 (676,419) 14,321,480 5,569,848 $ 443,434 $ 1,009,750 $ 20,539,770 3,984,989 $ 4,149,735 167,056 867,733 190,208 273,727 503,723 6,152,182 Page 131 City of Goodyear, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Governmental Funds For the Year Ended June 30, 2024 Special Revenue Revenues Taxes Intergovernmental revenue Charges for services Investment income Contributions Other revenues Total revenues Highway User Community Office of Tourism Revenue Facilities Districts Prop 302 $ $ 2,440,067 $ 7,722,795 Expenditures Current: General government Public safety Highways and streets Public works Culture and recreation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures 285,726 140,683 8,008,521 96,016 2,676,766 Grants $ 228,347 1,513,385 228,347 1,513,385 1,936,909 353,349 432,915 282,354 191 7,762,571 288,592 270,957 Excess (deficiency) of revenues over expenditures 444,577 8,033,528 1,936,909 288,592 1,513,386 (25,007) 739,857 (60,245) (1) (25,007) 739,857 (60,245) (1) 1,620,650 6,675,008 (18,885) 48,049 1,595,643 $ 7,414,865 $ (79,130) $ 48,048 Other financing sources (uses) Transfers in Total other financing sources (uses) Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 132 $ Capital Projects Special Revenue Total Non‐Major Community Governmental Facilities Districts Funds Ball Park Special Revenue $ Ambulance $ Debt Service $ 3,344,542 386,545 1,304,974 896,710 5,036,061 896,710 11,063,888 $ $ 105,748 11,169,636 11,415,018 2,290,258 1,338,360 8,044,925 191 6,913,079 15,536,696 11,415,018 14,108,700 6,352,305 54,584,514 (11,415,018) (25,055,088) 11,415,018 11,415,018 25,095,420 25,095,420 905,445 6,624,487 2,942,026 464,118 7,595,000 2,398,810 19,560,323 1,369,563 6,513,700 3,953,495 10,467,195 (14,524,262) (472,853) 702,441 13,207,549 13,207,549 472,853 472,853 (1,316,713) $ 702,441 40,332 14,281,148 5,301,702 406,739 247,885 3,984,989 $ 406,739 $ 950,326 $ Page 133 13,503,955 9,464,527 4,241,252 918,702 1,304,974 96,016 29,529,426 $ 14,321,480 City of Goodyear, Arizona Highway User Revenue Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Final Budget Final Actual 8,224,700 $ 8,224,700 $ 8,224,700 8,224,700 7,722,795 $ 285,726 8,008,521 (501,905) 285,726 (216,179) Expenditures Current: Highways and streets Public works Capital outlay Total expenditures 10,520,400 100 972,100 11,492,600 10,512,700 100 972,100 11,484,900 7,762,571 270,957 8,033,528 2,750,129 100 701,143 3,451,372 Excess (deficiency) of revenues over (under) expenditures (3,267,900) (3,260,200) (25,007) 3,235,193 Other financing sources (uses) Transfers in Total other financing sources (uses) 1,015,600 1,015,600 1,015,600 1,015,600 Changes in fund balances (2,252,300) (2,244,600) (25,007) 2,219,593 Fund balances, beginning of year 2,252,300 2,252,300 1,620,650 (631,650) 1,595,643 $ 1,587,943 Revenues Intergovernmental revenue Investment income Total revenues Fund balances, end of year Page 134 $ $ $ 7,700 $ (1,015,600) (1,015,600) City of Goodyear, Arizona Community Facilities District Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Final Budget Final Actual 2,372,200 $ 8,200 109,300 2,489,700 2,372,200 $ 8,200 109,300 2,489,700 2,440,067 $ 140,683 96,016 2,676,766 Expenditures Current: General government Total expenditures 8,281,600 8,281,600 8,281,600 8,281,600 1,936,909 1,936,909 6,344,691 6,344,691 Changes in fund balances (5,801,000) (5,801,000) 739,857 6,540,857 Fund balances, beginning of year 5,801,000 5,801,000 6,675,008 874,008 Revenues Taxes Investment income Other revenues Total revenues Fund balances, end of year Page 135 $ $ $ $ 7,414,865 $ 67,867 132,483 (13,284) 187,066 7,414,865 City of Goodyear, Arizona Office of Tourism Prop 302 Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Intergovernmental revenue Total revenues Final Actual Final Budget 300,000 $ 300,000 300,000 $ 300,000 228,347 $ 228,347 (71,653) (71,653) Expenditures Current: Culture and recreation Capital outlay Total expenditures 300,000 164,100 464,100 300,000 164,100 464,100 288,592 288,592 11,408 164,100 175,508 Changes in fund balances (164,100) (164,100) (60,245) 103,855 Fund balances, beginning of year 164,100 164,100 (18,885) (182,985) (79,130) $ (79,130) Fund balances, end of year Page 136 $ $ $ $ City of Goodyear, Arizona Grants Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Intergovernmental revenue Total revenues $ Final Budget Final Actual 2,368,100 $ 2,368,100 3,232,700 $ 3,232,700 1,513,385 $ 1,513,385 (1,719,315) (1,719,315) 483,700 486,200 1,000,000 353,349 432,915 282,354 191 444,577 1,513,386 108,351 763,585 217,646 73,809 2,000 827,223 1,992,614 Expenditures Current: General government Public safety Highways and streets Public works Culture and recreation Capital outlay Total expenditures 959,900 2,929,800 461,700 1,196,500 500,000 74,000 2,000 1,271,800 3,506,000 Changes in fund balances (561,700) (273,300) (1) 273,299 Fund balances, beginning of year 561,700 561,700 48,049 (513,651) 288,400 $ 48,048 $ (240,352) Fund balances, end of year Page 137 $ $ City of Goodyear, Arizona Ball Park Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Charges for services Investment income Contributions Other revenues Total revenues $ Final Budget Final Actual 2,077,500 $ 2,117,500 $ 1,266,500 10,000 3,354,000 1,266,500 10,000 3,394,000 3,344,542 $ 386,545 1,304,974 5,036,061 1,227,042 386,545 38,474 (10,000) 1,642,061 Expenditures Current: Culture and recreation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures 7,374,200 5,653,300 7,373,400 5,363,300 6,624,487 2,942,026 748,913 2,421,274 7,595,000 2,401,800 23,024,300 7,595,000 2,401,800 22,733,500 7,595,000 2,398,810 19,560,323 2,990 3,173,177 Excess (deficiency) of revenues over (under) expenditures (19,670,300) (19,339,500) (14,524,262) 4,815,238 Other financing sources (uses) Transfers in Total other financing sources (uses) 15,434,100 15,434,100 15,434,100 15,434,100 13,207,549 13,207,549 (2,226,551) (2,226,551) Changes in fund balances (4,236,200) (3,905,400) (1,316,713) 2,588,687 Fund balances, beginning of year 5,746,500 5,746,500 5,301,702 (444,798) 1,510,300 $ 1,841,100 $ 3,984,989 $ 2,143,889 Fund balances, end of year Page 138 $ City of Goodyear, Arizona Ambulance Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Charges for services Total revenues $ Final 281,700 $ 281,700 281,700 $ 281,700 Actual 896,710 $ 896,710 Final Budget 615,010 615,010 Expenditures Current: Public safety Capital outlay Total expenditures 1,018,500 464,500 1,483,000 1,018,500 440,900 1,459,400 905,445 464,118 1,369,563 113,055 (23,218) 89,837 Excess (deficiency) of revenues over (under) expenditures (1,201,300) (1,177,700) (472,853) 704,847 Other financing sources (uses) Transfers in Total other financing sources (uses) 1,032,500 1,032,500 1,032,500 1,032,500 472,853 472,853 (559,647) (559,647) Changes in fund balances (168,800) (145,200) Fund balances, beginning of year 168,800 168,800 406,739 237,939 23,600 $ 406,739 $ 383,139 Fund balances, end of year Page 139 $ $ 145,200 City of Goodyear, Arizona Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Final Budget Original Final Actual 11,196,100 $ 11,196,100 $ 11,196,100 11,196,100 11,063,888 $ 105,748 11,169,636 Expenditures Debt service: Principal retirement Interest and fiscal charges Total expenditures 6,513,700 3,953,500 10,467,200 6,513,700 3,953,500 10,467,200 6,513,700 3,953,495 10,467,195 5 5 Changes in fund balances 728,900 728,900 702,441 (26,459) Fund balances, beginning of year 36,200 36,200 247,885 211,685 765,100 $ 765,100 $ 950,326 $ 185,226 Revenues Taxes Investment income Total revenues Fund balances, end of year Page 140 $ $ (132,212) 105,748 (26,464) City of Goodyear, Arizona Community Facilities District Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Final Budget Original Final Actual Expenditures Capital outlay Total expenditures 15,500,000 15,500,000 15,500,000 15,500,000 11,415,018 11,415,018 4,084,982 4,084,982 Excess (deficiency) of revenues over (under) expenditures (15,500,000) (15,500,000) (11,415,018) 4,084,982 Other financing sources (uses) Transfers in Total other financing sources (uses) 15,500,000 15,500,000 15,500,000 15,500,000 11,415,018 11,415,018 (4,084,982) (4,084,982) Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 141 $ $ $ $ Page 142 Budgetary Comparison Schedules Other Funds Page 143 City of Goodyear, Arizona Park and Ride Marquee Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Charges for services Investment income Total revenues Actual 114,800 $ 114,800 114,800 Expenditures Current: Highways and streets Total expenditures 1,429,900 1,429,900 1,802,900 1,802,900 1,105,656 1,105,656 697,244 697,244 Excess (deficiency) of revenues over (under) expenditures (1,315,100) (1,688,100) (884,542) 803,558 Changes in fund balances (1,315,100) (1,688,100) (884,542) 803,558 Fund balances, beginning of year 1,315,100 1,315,100 1,478,685 163,585 Page 144 $ $ (373,000) $ 118,399 $ 102,715 221,114 Final Budget 114,800 $ Fund balances, end of year $ Final 594,143 $ 3,599 102,715 106,314 967,143 City of Goodyear, Arizona Court Enhancement Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Fines and forfeits Investment income Total revenues Actual 80,000 $ 80,000 $ 80,000 Expenditures Current: Public safety Total expenditures Final Budget 80,000 80,846 $ 18,290 99,136 846 18,290 19,136 404,500 404,500 404,500 404,500 43,779 43,779 360,721 360,721 Changes in fund balances (324,500) (324,500) 55,357 379,857 Fund balances, beginning of year 324,500 324,500 340,763 16,263 396,120 $ 396,120 Fund balances, end of year Page 145 $ Final $ $ $ City of Goodyear, Arizona Fill‐the‐Gap Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Fines and forfeits Investment income Total revenues Actual 6,000 $ 6,000 6,000 Expenditures Current: Public safety Total expenditures 81,100 81,100 81,100 81,100 Changes in fund balances (75,100) (75,100) 12,553 87,653 Fund balances, beginning of year 75,100 75,100 79,107 4,007 91,660 $ 91,660 Page 146 $ $ 8,486 $ 4,067 12,553 Final Budget 6,000 $ Fund balances, end of year $ Final 2,486 4,067 6,553 81,100 81,100 $ City of Goodyear, Arizona JCEF Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Fines and forfeits Investment income Total revenues Actual 13,500 $ 13,500 13,500 Expenditures Current: Public safety Total expenditures 162,400 162,400 162,400 162,400 Changes in fund balances (148,900) (148,900) 19,659 168,559 Fund balances, beginning of year 148,900 148,900 149,630 730 Page 147 $ $ 14,475 $ 5,184 19,659 Final Budget 13,500 $ Fund balances, end of year $ Final 975 5,184 6,159 162,400 162,400 $ 169,289 $ 169,289 City of Goodyear, Arizona Impound Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Charges for services Investment income Total revenues Actual 100,000 $ 100,000 $ 100,000 Expenditures Current: Public safety Total expenditures Final Budget 100,000 101,850 $ 16,721 118,571 1,850 16,721 18,571 380,700 380,700 380,700 380,700 88,507 88,507 292,193 292,193 Changes in fund balances (280,700) (280,700) 30,064 310,764 Fund balances, beginning of year 280,700 280,700 288,898 8,198 Fund balances, end of year Page 148 $ Final $ $ $ 318,962 $ 318,962 City of Goodyear, Arizona AZ Smart and Safe Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Intergovernmental revenue Total revenues $ Other financing sources (uses) Transfers out Total other financing sources (uses) Final Final Budget Actual 560,000 $ 560,000 560,000 $ 560,000 750,217 $ 750,217 190,217 190,217 (560,000) (560,000) (560,000) (560,000) (750,217) (750,217) (190,217) (190,217) 163 163 163 $ 163 Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 149 $ $ $ City of Goodyear, Arizona Officer Safety and Equipment Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Fines and forfeits Total revenues Final Actual Final Budget 20,000 $ 20,000 20,000 $ 20,000 16,935 $ 16,935 (3,065) (3,065) Expenditures Current: Public safety Total expenditures 93,500 93,500 93,500 93,500 56,112 56,112 37,388 37,388 Changes in fund balances (73,500) (73,500) (39,177) 34,323 Fund balances, beginning of year 73,500 73,500 71,319 (2,181) 32,142 $ 32,142 Fund balances, end of year Page 150 $ $ $ $ City of Goodyear, Arizona One Arizona Opioid Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Revenues Intergovernmental revenue Investment income Total revenues $ Expenditures Current: Public safety Total expenditures Final Actual 76,900 $ 76,900 $ 76,900 76,900 344,925 $ 674 345,599 76,900 76,900 77,300 77,300 77,307 77,307 (7) (7) (400) 268,292 268,692 169,304 169,304 437,596 $ 437,996 Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 151 $ Final Budget $ (400) $ 268,025 674 268,699 City of Goodyear, Arizona Water and Wastewater Enterprise Fund Schedule of Operations ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Operating revenues Charges for services Other revenues Total operating revenues $ Final Budget Original Final Actual 62,540,300 $ 23,200 62,563,500 62,540,300 $ 23,200 62,563,500 72,783,209 $ 159,281 72,942,490 10,242,909 136,081 10,378,990 312,200 137,705,989 (13,933,288) 124,084,901 Operating expenses Salaries, wages and benefits Cost of sales and services Depreciation Total operating expenses 10,196,300 146,618,300 10,196,300 166,285,500 156,814,600 176,481,800 9,884,100 28,579,511 13,933,288 52,396,899 Operating income (loss) (94,251,100) (113,918,300) 20,545,591 (134,463,891) Nonoperating revenues (expenses) Investment income Interest expense and fiscal charges Gain (loss) on sale of assets Total nonoperating revenue (expenses) (7,762,800) (7,762,800) (7,762,800) (7,762,800) 5,370,122 (5,783,937) 180,379 (233,436) 5,370,122 1,978,863 180,379 7,529,364 (102,013,900) (121,681,100) 20,312,155 141,993,255 Capital contributions Transfers in Transfers out 37,501,900 35,427,100 (42,293,800) 37,501,900 35,697,100 (42,563,800) 42,036,919 (6,866,700) 4,535,019 (35,697,100) 35,697,100 Changes in net position (71,378,700) (91,045,900) 55,482,374 146,528,274 Total net position, beginning of year 56,294,100 56,294,100 330,445,306 274,151,206 (15,084,600) $ (34,751,800) $ 385,927,680 $ 420,679,480 Income (loss) before contributions and transfers Total net position, end of year Page 152 $ City of Goodyear, Arizona Sanitation Enterprise Fund Schedule of Operations ‐ Budget and Actual For the Year Ended June 30, 2024 Budgeted Amounts Variance with Original Operating revenues Charges for services Other revenues Total operating revenues $ Final Budget Final Actual 7,972,300 $ 7,972,300 $ 7,972,300 7,972,300 9,230,840 $ 1,984 9,232,824 1,258,540 1,984 1,260,524 152,771 2,304,377 (174,044) 2,283,104 Operating expenses Salaries, wages and benefits Cost of sales and services Depreciation Total operating expenses 1,391,900 8,385,900 1,391,900 8,436,900 9,777,800 9,828,800 1,239,129 6,132,523 174,044 7,545,696 Operating income (loss) (1,805,500) (1,856,500) 1,687,128 (3,543,628) 268,397 5,280 273,677 268,397 5,280 273,677 Nonoperating revenues (expenses) Investment income Gain (loss) on sale of assets Total nonoperating revenue (expenses) Income (loss) before contributions and transfers (1,805,500) (1,856,500) 1,960,805 3,817,305 450,000 (1,829,800) 450,000 (1,829,800) (1,379,800) (450,000) 450,000 Changes in net position (3,185,300) (3,236,300) 581,005 3,817,305 Total net position, beginning of year 4,002,200 4,002,200 4,775,302 773,102 Transfers in Transfers out Total net position, end of year Page 153 $ 816,900 $ 765,900 $ 5,356,307 $ 4,590,407 Page 154 City of Goodyear Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 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. STATISTICAL SECTION Page 155 Page 156 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 assess the affordability of the City’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information These schedules contain information about the City’s operations and various resources to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs. 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 157 City of Goodyear Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2015 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 Source: Statement of Net Position Page 158 2016 2017 2018 $ 365,019,949 $ 361,739,970 $ 379,899,821 $ 381,473,262 92,247,738 92,276,066 90,497,505 87,435,376 19,147,997 16,944,442 29,981,817 5,722,007 462,989,694 473,164,033 487,341,768 498,890,455 176,380,867 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 24,366,584 236,868,238 541,400,816 542,380,132 561,142,803 580,506,208 99,855,640 110,407,785 111,569,739 100,904,084 26,528,488 32,919,264 54,348,401 19,912,304 $ 661,168,760 $ 679,316,405 $ 705,631,806 $ 735,758,693 Table 1 Fiscal Year 2019 2020 $ 342,610,234 $ 334,972,021 149,077,511 155,095,665 112,776,992 43,643,472 535,331,217 602,844,678 227,004,152 6,346,204 26,960,200 260,310,556 569,614,386 155,423,715 70,603,672 $ 795,641,773 $ Page 159 2021 $ 435,167,043 147,571,052 106,628,136 689,366,231 254,623,951 302,551,844 31,895,840 286,519,791 19,196,217 321,748,061 2022 $ 589,595,972 737,718,887 155,095,665 147,571,052 144,672,832 125,824,353 889,364,469 $ 1,011,114,292 $ 505,965,429 158,679,422 130,927,545 795,572,396 2023 $ 547,891,870 147,023,829 184,912,404 879,828,103 2024 $ 592,847,643 171,363,608 221,007,694 985,218,945 276,352,992 21,277,991 31,984,374 329,615,357 284,640,676 22,470,097 28,109,835 335,220,608 303,472,138 38,488,139 49,323,710 391,283,987 782,318,421 179,957,413 162,911,919 1,125,187,753 $ 832,532,546 169,493,926 213,022,239 1,215,048,711 $ 896,319,781 209,851,747 270,331,404 1,376,502,932 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2015 Expenses** Governmental Activities: General government Public safety Highways and streets Public works Culture and recreation Development services Interest on long‐term debt Total Governmental Activities Expenses Business‐type Activities Water and wastewater Sanitation Stadium* Total Business‐type Activities Expenses Total Primary Government Expenses $ $ $ $ 2016 2017 Page 160 2019 19,624,056 $ 19,824,313 $ 31,834,683 34,823,588 17,941,162 20,753,487 3,361,822 7,920,958 6,422,764 6,880,654 7,005,308 7,981,904 8,763,353 8,479,284 94,953,148 $ 106,664,188 $ 20,151,975 $ 23,781,937 $ 23,478,993 47,535,184 45,439,446 52,241,594 19,181,162 26,460,464 21,330,274 3,569,658 4,232,567 7,972,935 15,363,752 19,080,188 19,083,232 7,316,935 6,591,111 8,380,985 12,131,284 11,582,014 8,797,275 125,249,950 $ 137,167,727 $ 141,285,288 25,489,522 $ 5,802,163 12,407,494 43,699,179 $ 30,139,626 $ 5,868,228 26,853,794 $ 6,206,843 31,493,180 6,681,134 36,007,854 $ 33,060,637 $ 38,174,314 27,647,487 $ 6,444,459 12,647,134 46,739,080 $ $ 138,652,327 $ 153,403,268 $ 161,257,804 $ 170,228,364 $ 179,459,602 Notes: * Beginning in fiscal year 2017, stadium operations were moved to governmental activities. ** Beginning in fiscal year 2016 expense functions were consolidated to align with the basic financial statements Source: Statement of Activities 2018 Table 2 Fiscal Year 2020 2021 2022 2023 2024 $ 26,604,672 $ 31,006,001 $ 34,157,389 $ 38,061,902 $ 48,366,196 59,271,160 60,372,627 64,651,123 72,526,205 97,127,666 21,599,888 21,439,214 23,563,017 24,863,132 25,502,886 10,177,808 9,655,317 5,602,891 8,052,159 11,305,561 18,739,373 19,716,170 25,843,304 33,318,763 38,719,469 10,466,142 11,665,512 14,906,593 15,613,064 18,929,987 9,009,554 10,360,626 9,236,464 9,537,281 9,099,562 $ 155,868,597 $ 164,215,467 $ 177,960,781 $ 201,972,506 $ 249,051,327 $ 40,540,282 $ 6,028,780 48,483,586 $ 6,547,622 49,204,444 $ 7,314,418 49,903,049 $ 7,486,417 58,180,836 7,545,696 $ 46,569,062 $ 55,031,208 $ 56,518,862 $ 57,389,466 $ 65,726,532 $ 202,437,659 $ 219,246,675 $ 234,479,643 $ 259,361,972 $ 314,777,859 continued Page 161 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year Program Revenue* Governmental Activities: Charges for Services: General government Public safety Highway and streets Public works 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 2015 2016 2017 2018 2019 2,766,974 $ 1,624,427 2,398,256 $ 1,713,627 2,368,056 $ 1,313,160 2,592,414 $ 1,373,556 81,727 416,607 5,353,778 10,777,134 8,252,449 29,191,369 $ 386,041 7,043,227 9,518,206 12,134,476 33,193,833 $ 3,135,416 9,079,431 10,546,333 12,246,216 38,688,612 $ 2,984,530 10,416,143 16,164,698 7,442,815 41,055,883 $ 4,965,435 6,987,626 382,531 405,393 4,008,274 12,993,399 9,809,818 21,231,123 60,783,599 24,650,687 $ 6,922,425 2,237,359 31,358,803 $ 7,577,840 35,203,483 $ 7,812,267 42,658,585 8,058,461 14,454,883 48,265,354 27,724,410 $ 7,125,427 2,234,046 110,837 11,692,490 48,887,210 110,718 13,317,172 52,364,533 12,237,823 55,253,573 12,962,807 63,679,853 $ 77,456,723 $ 82,081,043 $ 91,053,145 $ 96,309,456 $ 124,463,452 $ (65,761,779) $ 4,566,175 (61,195,604) $ (73,470,355) $ 2,148,130 (71,322,225) $ (86,561,338) $ 16,356,679 (70,204,659) $ (96,111,844) $ 22,192,936 (73,918,908) $ (80,501,689) 25,505,539 (54,996,150) $ $ $ $ Note: * Beginning in fiscal year 2016 program revenues were consolidated to align with the basic financial statements Source: Statement of Activities Page 162 Table 2 Fiscal Year 2020 2021 2022 2023 2024 3,509,152 $ 7,243,340 440,190 583,405 2,916,950 18,765,859 18,571,098 23,253,699 75,283,693 $ 7,070,344 $ 7,421,123 490,969 501,541 2,765,727 19,839,213 9,587,222 30,499,488 78,175,627 $ 4,052,068 $ 8,569,570 722,058 603,704 4,322,415 17,598,359 20,334,900 42,192,506 98,395,580 $ 1,857,785 $ 1,914,488 118,143 120,113 3,411,962 15,933,323 16,677,690 36,800,110 76,833,614 $ 1,845,268 3,121,684 118,399 157 5,418,613 21,392,041 16,594,202 35,040,767 83,531,131 60,392,907 $ 8,319,350 62,983,880 $ 8,042,545 53,394,756 $ 7,683,528 53,005,605 $ 8,802,201 72,942,490 9,232,824 5,765,107 74,477,364 26,481,652 97,508,077 11,254,372 72,332,656 7,594,454 69,402,260 42,036,919 124,212,233 $ 149,761,057 $ 175,683,704 $ 170,728,236 $ 146,235,874 $ 207,743,364 $ (80,584,904) $ 27,908,302 (52,676,602) $ (86,039,840) $ 42,476,869 (43,562,971) $ (79,565,201) $ 15,813,794 (63,751,407) $ (125,138,892) $ 12,012,794 (113,126,098) $ (165,520,196) 58,485,701 (107,034,495) $ $ $ $ continued Page 163 City of Goodyear Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 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 Miscellaneous Transfers Total Business‐type Activities Total Primary Government Changes in Net Position Governmental Activities Business‐type Activities Total Primary Government Source: Statement of Activities Page 164 2015 2016 2017 2018 2019 66,223,459 $ 16,361,588 361,146 4,980,000 975,258 (582,797) 71,256,446 $ 16,848,837 710,040 74,899,373 $ 20,019,457 560,547 82,662,446 $ 19,967,694 1,196,857 90,314,174 21,244,412 4,661,685 393,977 (5,564,606) 886,502 2,800,000 $ 88,318,654 $ 83,644,694 $ 341,814 934,949 3,700,000 3,700,000 (36,893) 99,165,879 $ 107,868,811 $ 120,855,220 $ $ 151,405 $ 103,482 582,797 837,684 $ 237,615 $ 22,955 5,564,606 5,825,176 $ 123,100 $ 31,081 (2,800,000) (2,645,819) $ $ 89,156,338 $ 89,469,870 $ 96,520,060 $ 104,253,081 $ 118,791,999 $ 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 $ $ $ 47,246 $ 37,024 (3,700,000) (3,615,730) $ 11,756,967 $ 18,577,206 30,334,173 $ 1,595,877 40,902 (3,700,000) (2,063,221) 40,353,531 23,442,318 63,795,849 Table 2 Fiscal Year 2020 2021 2022 2023 2024 $ 116,603,604 $ 137,957,936 $ 154,920,196 $ 151,737,382 $ 191,745,194 22,785,856 26,494,716 29,850,191 39,382,895 48,928,158 4,412,256 899,168 (3,080,671) 9,654,094 20,582,710 797,405 3,499,244 309,020 6,900,553 1,240,870 8,015,934 1,064,227 7,556,001 1,408,476 8,246,500 $ 148,098,365 $ 172,561,393 $ 190,946,520 $ 209,394,599 $ 270,911,038 $ $ 1,800,177 $ ‐ (3,499,244) (1,699,067) $ (461,996) $ 113,950 (6,900,553) (7,248,599) $ 33,866 $ 35,570 (8,015,934) (7,946,498) $ 1,093,207 $ 55,251 (7,556,001) (6,407,543) $ 5,638,519 185,659 (8,246,500) (2,422,322) $ 146,399,298 $ 165,312,794 $ 183,000,022 $ 202,987,056 $ 268,488,716 $ $ 67,513,461 $ 86,521,553 $ 111,381,319 $ 26,209,235 35,228,270 7,867,296 93,722,696 $ 121,749,823 $ 119,248,615 $ 84,255,707 $ 105,390,842 5,605,251 56,063,379 89,860,958 $ 161,454,221 concluded Page 165 Page 166 Table 3 City of Goodyear Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) State Shared Revenues ‐ not Restricted for Specific Programs Fiscal Year Property Taxes Sales & Use Taxes 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 18,171,606 19,114,087 19,875,628 20,649,103 22,099,698 23,673,696 25,858,467 28,180,626 31,543,708 34,083,996 45,333,649 49,309,600 52,085,570 58,831,503 64,940,363 89,722,744 108,495,439 122,858,885 115,585,674 152,130,402 Source: City Financial Records and Reports Page 167 Franchise Taxes 2,718,204 2,832,759 2,941,175 3,181,840 3,274,113 3,207,164 3,604,030 3,880,685 4,608,000 5,530,796 State Shared Sales State Revenue Sharing Highway User Revenue 8,459,645 8,988,686 10,324,010 10,354,186 11,573,618 12,074,091 14,084,067 17,488,685 20,083,986 20,996,460 7,901,942 7,859,101 9,665,448 9,613,508 9,670,794 10,711,765 12,410,649 12,361,506 19,298,909 27,931,698 4,041,402 4,264,827 5,066,574 5,042,068 5,463,045 5,622,730 6,020,431 7,149,095 8,288,543 8,008,521 City of Goodyear Excise Tax Collections Last Ten Fiscal Years (accrual basis of accounting) (Unaudited) Fiscal Year 2015 2016 2017 2018 2019 City Privilege (Sales) Tax State‐Shared Sales Tax State‐Shared Income Tax State‐Share Vehicle License Tax Fines and Forfeitures Franchise Taxes $ 45,333,649 $ 49,309,600 $ 52,085,570 $ 58,831,503 $ 64,940,363 5,965,400 6,258,721 7,217,395 7,151,224 8,121,305 7,901,942 7,859,101 9,665,448 9,613,508 9,670,794 2,494,245 2,729,966 3,106,615 3,202,962 3,452,313 860,313 839,108 925,314 1,044,317 1,044,516 2,718,204 2,832,759 2,941,175 3,181,840 3,274,113 Total $ 65,273,754 $ 69,829,255 $ 75,941,517 $ 83,025,354 $ 90,503,404 Source: City Financial Records and Reports Page 168 Table 4 Fiscal Year 2020 $ 2021 2022 2023 2024 89,722,744 $ 108,495,439 $ 122,858,885 $ 115,585,674 $ 152,130,403 8,558,218 9,962,516 13,422,577 15,038,266 16,030,191 10,711,765 12,410,649 12,361,506 19,298,909 20,438,898 3,515,873 4,121,551 4,066,108 5,045,720 4,966,269 869,101 1,037,122 1,138,437 1,061,724 1,070,792 3,207,164 3,604,030 3,880,685 4,608,000 5,530,796 $ 116,584,865 $ 139,631,307 $ 157,728,198 $ 160,638,293 $ 200,167,349 Page 169 City of Goodyear Sales & Use Taxes by Industry Classification Last Ten Fiscal Years (Unaudited) Fiscal Year 2015 Retail Trade Food for Home Comsumption Retail Sales Single Item Over $5,000 Online Marketplace Construction Restaurant & Bar Utilities Real Estate Use Tax Hotels Miscellaneous Services Mining & Government Manufacturing Wholesale Trade Total* 2016 2017 2018 2019 $ 16,348,224 $ 17,279,498 $ 15,858,660 $ 17,225,692 $ 19,005,260 N/A N/A 3,025,758 3,010,974 3,521,946 N/A N/A 1,467,287 1,551,211 1,572,031 N/A N/A N/A N/A N/A 5,559,142 7,545,663 10,836,043 13,341,879 16,452,327 6,343,415 7,032,111 8,506,564 9,225,969 9,958,478 4,051,837 4,077,652 3,606,813 3,804,722 3,882,328 5,480,481 5,575,550 4,772,566 5,005,280 5,690,265 N/A N/A 1,185,539 1,530,696 3,025,135 1,067,357 1,096,710 1,109,804 1,269,275 1,408,405 1,032,464 839,592 511,710 647,714 690,088 2,424,312 7,159 1,318,999 1,130,527 2,833,590 6,534 1,410,894 1,032,679 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $ 44,763,917 $ 48,730,473 $ 50,880,744 $ 56,613,413 $ 65,206,263 Note: 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) & Business Class Summary Page 170 Table 5 Fiscal Year 2020 2021 2022 2023 $ 23,110,619 $ 33,935,084 $ 34,990,477 $ 32,892,536 $ 4,244,991 4,934,402 5,136,245 5,952,702 1,808,400 2,235,620 2,292,930 2,335,404 1,420,681 4,453,219 4,173,776 4,937,819 32,982,384 32,360,764 38,424,569 36,609,772 10,088,705 11,978,934 14,691,883 16,218,406 3,880,600 4,325,833 4,898,487 5,951,167 6,518,205 8,006,495 10,860,200 12,418,051 3,013,942 3,414,172 3,522,351 4,121,706 1,302,400 1,682,639 2,444,697 2,436,295 717,475 436,584 688,860 779,634 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2024 33,523,914 6,263,633 2,616,609 5,658,211 50,446,628 17,679,270 7,459,752 18,005,428 6,556,142 2,501,322 696,168 N/A N/A N/A N/A $ 89,088,402 $ 107,763,744 $ 122,124,474 $ 124,653,491 $ 151,407,077 Page 171 City of Goodyear Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year General Fund Nonspendable: Advances to other funds Inventories Prepaid items Restricted by: Charter mandates Court Law enforcement Transit Assigned to: IT replacement Facilities asset mgmt plan Fleet replacement Risk management Parks management Police asset reserve Fire asset reserve Traffic signal reserve General Fund Budget Unassigned Total General Fund $ 2015 2016 2017 2018 961,840 $ 21,656 573,473 961,840 $ 1,251,242 $ 1,045,531 667,798 683,056 758,946 3,841,444 240,631 309,112 745,210 4,009,183 178,351 427,243 847,446 4,186,816 200,753 384,144 952,239 4,377,576 238,965 432,662 1,064,752 108,301 498,851 1,829,656 1,956,201 2,508,319 1,088,234 3,196,101 1,077,452 1,271,367 1,251,242 933,704 2,729,350 2,147,582 403,209 4,504,416 888,212 3,033,620 134,146 454,872 74,699 49,783,760 52,620,845 53,399,369 60,552,115 $ 60,181,980 $ 65,756,477 $ 70,352,362 $ 79,516,713 All Other Governmental Funds Nonspendable: Inventories $ 487,413 $ 564,639 $ 533,304 $ 553,663 Prepaid items Restricted by: Debt service 13,810,210 12,989,198 13,219,610 5,576,920 Development impact fees 9,833,566 12,882,857 12,428,141 19,453,023 Grants Highway user funds 174,025 721 37,130 Tourism Transit 35,863 Capital projects 4,414,851 9,869,218 21,876,083 Community facilities districts operations 1,109,573 1,434,106 1,846,863 2,442,864 Ambulance 1,963,850 Committed 1,647,416 Ball Park Unassigned (66,487) (28,737) (105,729) (22,755) Total All Other Governmental Funds Page 172 $ 29,763,151 $ 27,842,784 $ 39,475,953 $ 51,879,511 Table 6 Fiscal Year 2019 $ 2020 $ 2021 $ 2022 $ 2023 $ 2024 $ 311,940 1,402,473 210,154 2,134,415 283,305 2,159,059 299,683 171,959 472,374 167,397 5,241,347 4,582,213 294,594 470,847 1,189,336 4,813,576 445,474 327,832 1,156,827 453,814 372,270 1,260,501 509,763 324,149 1,402,368 569,500 529,685 1,478,684 657,069 788,863 594,143 1,988,219 2,656,884 3,209,868 3,910,722 805,987 3,280,541 156,142 738,260 1,362,099 55,747,287 16,546,219 3,455,394 475,484 2,421,309 5,953,763 750,000 3,103,501 3,113,269 1,938,782 8,190,265 750,000 3,733,077 3,099,030 3,322,634 11,236,256 750,000 4,332,181 2,058,561 4,366,907 12,852,427 1,131,785 5,814,513 892,018 1,299,118 86,240,624 18,030,053 987,419 1,387,206 98,074,000 29,258,434 1,228,220 1,418,793 129,774,800 26,378,589 619,608 1,694,480 148,278,700 35,053,964 1,303,511 2,200,915 187,474,800 30,532,240 $ 92,786,879 $ 124,559,162 $ 147,253,140 $ 179,061,758 $ 211,609,055 $ 255,184,478 $ 678,548 $ 5,913,772 29,633,601 249 43,953,339 10,164,456 497,974 $ 1,027,794 $ 323,750 1,259,339 $ 2,277,075 55,713,143 3,323,230 80,340,543 3,873,333 116,167,515 48,048 70 62,500 3,102,030 91,525,059 48,049 361,311 164,112 40,471,387 9,978,487 38,019,761 5,643,082 26,425,693 6,586,516 19,386,727 6,675,008 406,739 15,590,434 7,414,865 406,739 3,043,242 (501,057) 3,729,087 (150,748) 4,754,655 (374,937) 5,301,702 (18,885) 3,984,989 (676,419) 5,945,421 43,001,310 521,217 $ 2,192,932 2,555,378 (188,894) $ 92,710,449 $ 102,436,764 $ 105,815,187 $ 122,571,356 $ 128,047,079 $ 149,002,436 Page 173 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2015 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Special assessments Contributions Miscellaneous Total Revenues Expenditures * General government Public safety 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 Excess of Revenues over (under) Expenditures 2016 2017 2018 $ 66,203,440 $ 71,287,200 $ 74,924,078 $ 82,602,447 $ 90,300,757 6,558,607 7,357,205 9,302,729 10,636,668 12,314,128 21,749,386 21,811,572 25,780,719 26,773,324 27,458,465 4,576,618 5,792,947 9,227,037 10,418,539 12,234,549 860,313 839,108 925,314 1,044,317 1,044,516 361,146 710,040 560,547 1,196,857 4,606,033 5,762,295 6,096,012 6,009,405 5,968,798 9,868,376 2,976,642 1,346,713 1,638,229 6,358,002 4,036,766 243,473 728,930 516,160 2,485,672 1,192,520 115,969,727 128,884,218 147,484,624 163,056,110 109,291,920 18,081,622 29,505,746 5,494,087 2,268,109 5,265,454 6,933,854 11,326,103 17,968,635 32,881,648 5,680,917 2,255,101 5,712,191 7,933,367 15,988,901 19,191,902 36,905,961 5,748,952 2,598,519 12,090,866 7,187,389 17,628,611 20,825,896 39,779,006 5,517,174 2,897,716 11,315,720 7,159,767 30,366,883 20,801,270 43,459,463 7,563,123 2,827,608 14,108,472 7,641,804 17,066,876 9,291,703 9,323,202 9,772,183 9,046,458 14,581,544 12,968,581 21,763,951 12,599,646 97,489,880 107,239,401 128,902,325 19,642,573 15,708,001 4,622,056 157,834,792 147,832,213 11,802,040 8,730,326 (18,107) (10,350,168) 15,223,897 Notes: * 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 174 2019 Table 7 Fiscal Year 2020 $ 2021 2022 2023 2024 116,390,115 $ 18,061,371 39,616,094 17,351,117 869,101 4,351,915 5,509,308 6,247,217 1,504,393 209,900,631 138,046,896 $ 19,073,277 34,652,939 23,799,246 1,037,122 898,599 6,810,016 5,588,920 1,257,515 231,164,530 154,824,840 $ 16,654,379 58,325,325 24,108,155 1,138,437 (3,080,671) 6,357,266 3,454,890 1,842,263 263,624,884 151,767,894 16,403,295 54,932,234 23,929,640 1,061,724 9,483,329 5,603,254 4,585,504 1,768,849 269,535,723 $191,670,670 21,774,745 62,699,499 28,745,632 1,076,316 20,030,624 5,511,355 2,687,537 2,291,763 336,488,141 22,828,171 45,641,389 7,399,662 4,044,509 13,042,653 8,916,314 40,565,230 28,189,094 72,064,162 7,548,526 3,708,625 14,500,770 10,500,186 84,788,927 30,533,336 59,500,593 8,103,897 3,316,324 19,566,132 13,320,560 83,697,834 31,308,086 62,746,423 8,323,809 5,835,433 24,418,658 14,869,850 61,318,087 38,009,534 79,127,704 9,150,581 8,307,650 28,208,333 15,883,541 79,741,162 19,465,657 10,818,794 25,673,172 10,941,518 21,852,781 10,386,995 24,391,744 10,536,075 23,453,393 10,117,732 172,722,379 257,914,980 250,278,452 243,748,165 291,999,630 37,178,252 (26,750,450) 13,346,432 25,787,558 44,488,511 continued Page 175 City of Goodyear Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Fiscal Year 2015 Other Financing Sources and (Uses) Transfer in Transfer out Sale of assets* Debt issuance Debt premium Refunding bonds Refunding bonds premium Payment to refunded bond escrow agent 2016 2017 2018 2019 $ 4,588,019 $ 3,539,227 $ 12,768,632 $ 13,901,429 $ 17,954,246 (9,923,248) (9,091,060) (9,968,632) (10,201,429) (14,254,246) 346,124 4,980,000 10,968,000 25,015,000 33,873,000 (39,461) 958,083 7,015,000 18,535,000 118,130,941 51,537,627 452,099 2,047,350 14,546,606 722,171 (49,056,702) (7,168,901) (20,106,713) (130,387,703) Total Other Financing Sources and (Uses) Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures (96,492) (5,076,196) 16,057,844 31,918,096 $ 11,705,548 $ 3,654,130 $ 16,039,737 $ 21,567,928 $ 54,101,104 20.6% 18.4% 22.9% 23.6% Notes: * Beginning in fiscal year 2019 sales of assets was broken out to align with the basic financial statements. Source: City Financial Records and Reports Page 176 38,877,207 24.8% Table 7 Fiscal Year 2020 2021 2022 2023 2024 $ 28,400,983 $ 45,929,762 $ 62,317,732 $ 41,468,250 $ 33,341,920 (24,901,739) (39,029,209) (54,301,798) (33,912,249) (25,095,420) 291,817 213,803 413,605 250,461 323,265 529,285 39,530,000 24,073,000 4,429,000 11,085,000 2,715,816 387,504 25,520,000 5,859,505 (25,201,010) 4,320,346 $ 41,498,598 $ 21.6% 52,822,851 35,218,355 12,235,462 20,042,269 26,072,401 $ 48,564,787 $ 38,023,020 $ 64,530,780 20.4% 18.8% 17.9% 14.4% concluded Page 177 City of Goodyear Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Unaudited) Overlapping Rates City Direct Rate County‐Wide Jurisdictions County Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt Operating Service Rate Rate 1.1836 1.1637 1.1598 1.1344 1.1084 1.0619 1.0330 1.0000 0.9957 0.9617 0.6864 0.7063 0.7025 0.6005 0.6266 0.6713 0.7005 0.7350 0.7393 0.7733 County Operating Rate Library District Rate Fire District Assistance Rate 1.8700 1.8700 1.8623 1.7349 1.7350 1.7332 1.7335 1.7350 1.7350 1.7350 1.3209 1.3609 1.4009 1.4009 1.4009 1.4009 1.4009 1.3459 1.2473 1.2044 0.0556 0.0556 0.0556 0.0556 0.0556 0.0556 0.0556 0.0556 0.0505 0.0488 0.0113 0.0116 0.0112 0.0102 0.0107 0.0095 0.0090 0.0086 0.0082 0.0081 Source: Maricopa County Assessor's Office Page 178 County Total City Rate County Flood Education District Equalization Rate Rate 0.1392 0.1592 0.1792 0.1792 0.1792 0.1792 0.1792 0.1792 0.1592 0.1536 0.5089 0.5054 0.5010 0.4875 0.4741 0.4566 0.4426 0.4263 continued Table 8 Overlapping Rates School Districts County‐Wide Jurisdictions Special Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Central Health Community Arizona College Project Rate Rate Care District Rate Total County Rate Agua Fria/ Buckeye/ Tolleson/ Avondale Litchfield Liberty Littleton Rate Rate Rate Rate Mobile Rate 0.3053 0.2941 0.2941 0.1871 0.1838 0.1803 0.1773 0.1749 3.6946 3.7267 4.0583 3.9771 3.7254 3.5854 3.5361 3.4471 2.8690 2.8089 10.0022 9.4960 9.8771 8.9315 8.4894 7.8709 7.6157 7.5438 6.8083 6.8207 7.8876 7.8876 8.1213 7.8876 7.8876 7.8876 7.8876 7.5960 7.3920 7.9735 1.5187 1.4940 1.4651 1.4096 1.1708 1.1565 1.1250 1.1112 1.0865 1.0791 0.1400 0.1400 0.1400 0.1400 0.1400 0.1400 0.1400 0.1400 0.1400 0.1400 3.7780 3.8352 3.8142 3.4763 3.8499 3.6716 3.5229 3.4950 3.3035 3.0068 8.0102 7.6149 7.0163 7.0616 6.8080 6.6742 8.8758 9.3434 9.5365 9.1900 10.4333 9.9303 9.5342 9.8185 10.0261 10.6716 10.2551 10.1994 9.4401 8.9940 continued Page 179 City of Goodyear Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Unaudited) Overlapping Rates Other Special Taxing Districts West Estrella Maricopa Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Centerra Cortina Cottonflower Mtn. Ranch Education Central Roosevelt Community Community Community Community Center District Rate Arizona GRD Rate Irrigation District Rate Facilities District Rate Facilities District Rate Facilities District Rate Facilities District Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 27.1000 27.1000 27.1000 27.1000 29.8100 29.8100 29.8100 29.8100 36.8100 36.8100 3.0361 3.1327 2.7404 2.6706 2.5823 2.4421 2.1576 1.8888 1.7302 1.6994 2.6034 2.5999 2.3824 1.8877 1.8664 1.8994 1.9843 1.5848 1.5846 1.5833 3.2768 3.3377 3.0482 2.5714 2.5413 2.5400 2.5443 1.9407 1.9397 1.9377 1.3000 1.3000 1.3000 1.3000 1.3000 1.3000 1.3000 1.3000 1.3000 1.3000 0.0810 0.0698 0.0840 0.1780 0.1494 0.1634 0.1655 0.1579 0.1538 0.1807 continued Page 180 Table 8 Overlapping Rates Other Special Taxing Districts Goodyear Goodyear Palm King Wildflower Wildflower Community Community Valley Ranch Community Community Facilities Facilities Community Community Facilities Facilities Fiscal Year General District #1 Rate Utilities District #1 Rate Facilities District #3 Rate Facilities District Rate General District #1 Rate General District #2 Rate 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.7334 0.7075 0.8466 0.9600 0.8896 0.8903 0.9040 0.7679 0.7568 0.7560 1.0162 1.1497 1.1500 1.1500 1.1480 0.9390 0.9039 0.8559 0.8428 0.8025 1.2592 1.1097 0.9308 0.8682 0.8085 0.6107 0.5450 0.4647 0.4149 0.3514 0.3000 0.3000 0.3000 0.3000 0.3000 0.3000 0.3000 0.3000 0.3000 0.3000 2.7761 2.9103 2.7230 2.8882 2.8489 2.6309 2.5582 2.3306 1.4600 0.3000 3.0227 3.1070 2.9330 3.0463 2.7801 2.7362 2.7278 2.3779 2.3020 2.2372 concluded Page 181 Page 182 Table 9 City of Goodyear Principal Property Tax Payers Current Fiscal Year and Nine Years Prior (Unaudited) Fiscal Year 2024 2015 Percentage of Total Taxable Assessed Rank Value Percentage of Total Taxable Assessed Value Taxable Assessed Value Rank $ 51,838,416 1 3.58% Microsoft Corporation 41,552,469 2 2.87% FR PV 303 PHASE 2 LLC 24,501,428 3 1.69% 23,942,110 4 1.65% Prologis Commerce Park 1QOZB LLC 20,923,931 5 1.45% Elwood Logistics Center LLC 18,172,149 6 1.26% Amazon Com Services LLC 17,754,561 7 1.23% MACYS LOGISTICS LLC 17,589,759 8 1.21% SDC PHX I LLC 16,904,120 9 1.17% LEX GOODYEAR 17510 WTR LLC 16,008,511 10 1.11% Taxpayer Taxable Assessed Value Estrella North LLC VHS of South Phoenix, Inc. $ 12,121,447 2 1.84% Arizona Public Service Company 21,114,158 1 3.20% First American Title Ins Co TR 7854 7,771,023 3 1.18% Macy's Retail Holdings, Inc 7,770,796 4 1.18% Cardinal Capital Co 7,465,061 5 1.13% The Market at Estrella Falls LLC 4,848,713 6 0.74% Southwest Gas Corporation 4,805,489 7 0.73% Broadway Goodyear, LLC 4,782,845 8 0.73% DH Goodyear LLC 4,681,851 9 0.71% TPP 211 Canyon Trails, LLC 4,173,031 10 0.63% Total Source: Maricopa County Treasurer Page 183 $ 79,534,414 13.13% $ 249,187,454 21.29% 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 Total Assessed Value Commercial Property Agricultural/ Vacant Land Other Less: Tax‐Exempt Property Net Assessed Value 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 2019 Limited Property Value 538,457,161 256,367,234 152,787,152 7,383,730 132,980,202 822,015,075 2020 Limited Property Value 590,823,853 299,172,489 163,622,803 7,807,328 139,439,679 921,986,794 2021 Limited Property Value 650,949,118 344,929,979 177,112,944 8,038,693 150,205,990 1,030,824,744 2022 Limited Property Value 715,248,375 390,866,605 182,107,720 28,564,695 155,524,146 1,161,263,249 2023 Limited Property Value 791,650,225 469,401,672 193,213,508 24,338,329 163,409,387 1,315,194,347 2024 Limited Property Value 861,187,703 520,924,742 208,663,078 27,746,410 168,948,233 1,449,573,700 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. Detail data prior to 2009 for "primary" is not available. Source: Maricopa County Assessor's Office Page 184 Table 10 Total Direct Tax Rate Estimated Actual Taxable Value Assessed Value as Percentage of Actual Value 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% 1.7350 7,985,016,888 10.3% 1.7332 8,822,931,900 10.4% 1.7335 9,758,686,383 10.6% 1.7350 11,002,212,492 10.6% 1.7350 12,358,511,781 10.6% 1.7350 13,613,253,756 10.6% Page 185 Table 11 City of Goodyear Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Fiscal Year Taxes Levied Collected within the Fiscal Year of the Levy Ended for the June 30 Fiscal Year (a) Amount 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 11,808,563 12,392,149 13,024,932 13,071,185 14,097,133 15,760,028 17,528,715 19,740,256 22,501,541 24,793,758 11,992,446 12,599,829 13,157,209 13,232,702 14,263,392 15,981,505 17,871,100 20,150,452 22,821,653 25,151,508 Collection in Percentage Subsequent of Levy Years 98.47% 98.35% 98.99% 98.78% 98.83% 98.61% 98.08% 97.96% 98.60% 98.58% 85,562 39,963 (8,480) 77,375 (12,338) 162,410 298,374 148,583 52,013 Total Collections to Date Amount Percentage of Levy 11,894,126 12,432,112 13,016,452 13,148,560 14,084,795 15,922,438 17,827,089 19,888,839 22,553,554 24,793,758 99.18% 98.67% 98.93% 99.36% 98.75% 99.63% 99.75% 98.70% 98.83% 98.58% (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 186 Table 12 City of Goodyear Utility Statistical Data Ten Largest Water Users Current Fiscal Year and Nine Fiscal Years Ago (Unaudited) Fiscal Year Entity Microsoft City of Goodyear Las Brisas Community Assoc Canyon Trails Unit HOA 4 West Liberty Utilities Corp Canyon Trails HOA Sundt Construction Canyon Trails 4 ‐ South Cottonflower Goodyear Community Avondale Elementary School Dist. Canyon Trails HOA Unit 4 Sarival Paseo Joint Community Canyon Trails HOA Unit 3 Agua Fria Union High School Dist. Cancer Treatment Center Type of User Industrial Multi Purpose Homeowner's Association Homeowner's Association Irrigation Homeowner's Association Hydrant & Industrial Homeowner's Association Homeowner's Association School Homeowner's Association Homeowner's Association Homeowner's Association School Hospital Total Total as a percent of total Water System Operating Revenue Source: City customer service and billing records Page 187 Rank 2015 Fees & Charges 6 178,383 2 238,517 1 10 9 3 4 5 7 8 281,998 125,343 157,459 210,435 189,034 184,634 167,713 Rank 1 2 3 4 5 6 7 8 9 10 2024 Fees & Charges 1,512,409 1,383,093 607,275 499,369 498,684 472,960 470,106 409,509 358,542 351,326 160,816 $ 1,894,333 $ 6,563,273 16.14% 10.93% Page 188 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 Microsoft Corporation City of Goodyear Factor75, LLC Shepard Invest Group JB Park Shadows Huhtamaki Serafina Apartments SPE, LLC Poore Brothers, Inc. Airport Master Meter Cancer Treatment Center Schoeller Arca Systems Inc Fairfield Goodyear LLC Fairfield Centerra LLC HSL Encantada Goodyear LLC Avondale Elementary Airport Training Center Type of User Prison Commercial Multi Purpose Industrial Apartments Apartments 3 Irrigation Apartments Food Manufacturer, Snac 4 Airport Hospital 2 Manufacturer 5 Apartments 6 Real Estate 7 Apartments 8 Education 9 Airport 10 Total Total as a percent of total Wastewater System Operating Revenue Source: City customer service and billing records Page 189 2015 Fees & Rank Charges 1 $ 554,273 90,148 79,858 Rank 1 2 3 4 5 6 7 8 9 10 2024 Fees & Charges $ 1,321,714 727,009 118,383 113,858 102,453 92,070 88,711 79,736 75,581 72,763 121,682 76,641 75,124 69,377 49,812 49,215 47,700 $ 1,213,830 $ 2,792,278 9.30% 8.34% City of Goodyear Schedule of Existing and Adopted Monthly Water & Wastewater Service Charges (2015 ‐ 2024) (Unaudited) Description of Water System Services Base Charge (Meter Size) 3/4 Inch 1 Inch 1 1/2 Inch 2 Inches 3 Inches 4 Inches 6 Inches 12 Inch Monthly Volume Charge ‐ Residential 0 ‐ 6,000 gallons (per thousand) 6,001 ‐ 12,000 (per thousand) 12,001 ‐ 30,000 (per thousand) 30,001+ gallons (per thousand) Monthly Volume Charge ‐ Commercial 0 ‐ 40,000 gallons (per thousand) 40,001 ‐ 100,000 gallons (per thousand) 100,001+ gallons (per thousand) Existing Fees 2024 Adopted 2015 Adopted 2016 Adopted 2017 Adopted 2018 Adopted 2019 Adopted 2020 Adopted 2021 Adopted 2022 Adopted 2023 $ 20.26 28.02 45.30 73.33 84.87 138.39 262.65 262.65 $ 11.24 15.54 25.12 40.67 77.67 126.65 240.36 $ 12.70 17.56 28.39 45.96 77.67 126.65 240.36 $ 14.73 20.37 32.93 53.31 77.67 126.65 240.36 $ 16.35 22.61 36.55 59.17 77.67 126.65 240.36 $ 17.49 24.19 39.11 63.31 77.67 126.65 240.36 $ 18.54 25.64 41.46 67.11 77.67 126.65 240.36 $ 18.54 25.64 41.46 67.11 77.67 126.65 240.36 $ 19.10 26.41 42.70 69.12 80.00 130.45 247.57 247.57 $ 19.67 27.20 43.98 71.20 82.40 134.36 255.00 255.00 $ 2.35 (2) 4.67 (3) 7.02 (4) 11.27 (5) $ 1.30 2.59 3.89 6.25 $ 1.47 2.93 4.40 7.06 $ 1.71 3.40 5.10 8.19 $ 1.90 3.77 5.66 9.09 $ 2.03 4.03 6.06 9.73 $ 2.15 4.27 6.42 10.31 $ 2.15 4.27 6.42 10.31 $ 2.21 4.40 6.61 10.62 $ 2.28 4.53 6.81 10.94 $ 5.53 8.85 11.47 $ 3.30 5.28 6.86 $ 3.73 5.97 7.75 $ 4.29 6.87 8.91 $ 4.72 7.56 9.80 $ 4.91 7.86 10.19 $ 5.06 8.10 10.50 $ 5.06 8.10 10.50 $ 5.21 8.34 10.82 $ 5.37 8.59 11.14 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. (1) Rates were updated during January 2017 (2) Monthly volume change for fees is 0 ‐ 6,000 gallons (per thousand). (3) Monthly volume change for fees is 6,001 ‐ 12,000 gallons (per thousand). (4) Monthly volume change for fees is 12,001 ‐ 30,000 gallons (per thousand). (5) Monthly volume change for fees is 30,001 ‐ and over gallons (per thousand). Schedule of Water System Rate Increases (2015‐2024) Date Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 Rate Increase 10.0% 13.0% 16.0% 11.0% 7.0% 6.0% 0.0% 3.0% 3.0% 3.0% 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 190 Table 14 Existing Fees Description of Wastewater System Service 2024 Residential Wastewater Service Base Charge (See below) Volume Charge (per 1,000 gallons) $ 7.18 General Commercial Wastewater Service Base Charge Volume Charge (per 1,000 gallons) $ Base Charge (Meter Size) 3/4 Inch 1 Inch 1 1/2 Inch 2 Inches 3 Inches 4 Inches 6 Inches $ Adopted 2015 Adopted 2016 Adopted 2017 Adopted 2018 Adopted 2019 Adopted 2020 Adopted 2021 Adopted 2022 Adopted 2023 $ 5.95 $ 5.95 $ 6.13 $ 6.25 $ 6.38 $ 6.51 $ 6.51 $ 6.71 $ 6.91 7.18 $ 5.95 $ 5.95 $ 6.13 $ 6.25 $ 6.38 $ 6.51 $ 6.51 $ 6.71 $ 6.91 26.24 40.26 49.61 96.38 127.13 168.66 417.83 $ 21.75 33.38 41.14 79.91 115.22 152.86 378.70 $ 21.75 33.38 41.14 79.91 115.22 152.86 378.70 $ 22.40 34.38 42.37 82.31 115.22 152.86 378.70 $ 22.85 35.07 43.22 83.96 115.22 152.86 378.70 $ 23.31 35.77 44.08 85.64 115.22 152.86 378.70 $ 23.78 36.49 44.96 87.35 115.22 152.86 378.70 $ 23.78 36.49 44.96 87.35 115.22 152.86 378.70 $ 24.49 37.58 46.31 89.97 118.68 157.45 390.06 $ 25.23 38.71 47.70 92.67 122.24 162.17 401.76 Schedule of Wastewater System Rate Increases (2015‐2024) Date Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 Page 191 Rate Increase 0.0% 3.0% 3.0% 2.0% 2.0% 2.0% 0.0% 3.0% 3.0% 3.0% City of Goodyear Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Governmental Activities Public Fiscal Year Ended June 30 General Obligation Bonds 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 21,638,323 18,564,501 21,987,761 43,983,309 64,022,774 61,007,711 94,324,553 113,133,855 107,045,363 100,531,663 Revenue Bonds 24,735,000 23,855,000 19,150,000 14,420,000 Improvement McDowell Corporation Road Municipal Corridor Facilities Improvement Revenue Bond District 10,037,745 8,859,189 127,152,711 121,145,790 100,376,526 102,722,600 62,248,918 54,461,237 50,580,000 47,715,000 40,881,328 39,304,278 37,647,228 34,870,000 28,910,000 26,610,000 23,315,000 21,080,000 17,815,000 15,445,000 Community Facilities District Bonds 108,520,857 106,289,435 103,870,391 94,683,268 87,776,000 86,300,170 73,456,000 67,187,000 65,183,000 69,315,000 Premium Discount on on Debt Payable Debt Payable 17,955,361 16,670,660 Notes: Beginning in fiscal year 2023, the City began reporting Premiums, Discounts and Financed Purchases Source: US Census Bureau, Applied Geographic Solutions/TIGER Geography, and City Financial Records Page 192 (26,309) (24,665) Lease Liability 60,361 38,668 Table 15 Business‐Type Activities Public Improvement Water Corporation Infrastructure General Obligation Bonds Municipal Facilities Revenue Bond 77,607,211 73,018,360 66,702,679 58,226,165 48,957,226 48,509,399 40,480,447 37,421,145 34,294,640 30,993,340 103,970,274 104,164,132 Page 193 Revenue Bonds 30,114,933 42,413,304 41,924,131 40,489,966 37,175,000 153,719,816 139,065,000 137,125,000 135,100,000 133,030,000 Premium on Debt Payable 14,974,174 14,069,981 Finance Authority Loan 9,096,237 3,854,322 3,591,773 3,323,972 3,050,815 2,772,195 2,488,002 2,198,125 1,902,451 1,600,863 Total 401,866,908 396,467,521 402,876,674 396,722,470 370,268,341 481,641,891 460,112,920 456,461,362 464,034,041 443,805,510 Percentage of Personal Income Per Capita 21.38% 19.80% 21.52% 16.23% 14.16% 16.75% 14.90% 12.84% 11.69% 9.35% 5,443 5,304 5,180 4,750 4,374 5,420 4,822 4,490 4,374 3,811 Table 16 City of Goodyear Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) Percentage Fiscal Year Ended June 30 General Obligation Bonds 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 99,245,534 91,582,861 88,690,440 102,209,474 112,980,000 109,517,110 134,805,000 150,555,000 141,340,003 131,525,003 Less: Amounts Available in Debt Service Fund 13,202 703,557 778,715 229,724 229,320 786,066 1,030,090 247,885 950,326 Source: City Financial Records and Reports Page 194 Total 99,245,534 91,569,659 87,986,883 101,430,759 112,750,276 109,287,790 134,018,934 149,524,910 141,092,118 130,574,677 Estimated Actual Taxable Value of Property 15.01% 13.65% 12.38% 13.29% 13.72% 11.85% 13.00% 12.88% 10.73% 9.01% Per Capita 1,344 1,225 1,131 1,215 1,332 1,230 1,406 1,471 1,330 1,121 Table 17 City of Goodyear Direct and Overlapping Governmental Activities Debt As of June 30, 2024 (Unaudited) Net Assessed Limited Property Value Overlapping Jurisdiction Debt Outstanding 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 Utilities 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: $ 54,722,310,149 $ ‐ 54,722,310,149 87,320,000 55,027,363,791 574,205,000 20,761,536,409 114,930,000 422,757,102 51,905,000 654,882,982 35,110,000 386,273,800 44,665,000 1,445,258,456 58,410,000 8,128,010 ‐ 1,064,942,169 61,085,000 1,741,234,620 290,850,000 2,100,141,438 247,420,000 6,383,964 0 6,473,416 260,000 155,866,963 4,360,000 545,213,822 23,690,000 166,127,966 18,070,000 12,108,731 1,000,000 19,901,283 2,046,000 13,542,759 1,230,000 195,305,556 3,725,000 $ 194,178,063,535 $ 1,620,281,000 Direct Debt: City of Goodyear $ 1,449,573,700 $ 264,111,326 Total Direct and Overlapping Debt Total Governmental and Business‐Type General Obligation Bonds $ 131,525,003 Estimated Percentage Applicable (a) Net Debt Amount 2.646% % $ 2.646% 2.631% 6.974% 60.451% 87.116% 0.021% 42.739% 49.209% 23.997% 0.005% 56.577% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% $ ‐ 2,310,306 15,108,052 8,014,827 31,376,858 30,586,276 9,302 24,964,074 None 14,658,849 13,438 139,983,155 None 260,000 4,360,000 23,690,000 18,070,000 1,000,000 2,046,000 1,230,000 3,725,000 321,406,137 100.00 % $ 264,111,326 $ 585,517,463 100.00 % $ 131,525,003 (a) Proportion applicable to the City of Goodyear, Arizona is computed on the ratio of net assessed limited property value for 2023/24 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 195 City of Goodyear Legal Debt Margin Information For the Fiscal Years Ending June 30, (Unaudited) Fiscal Year 2015 2016 2017 2018 $ 659,588,897 $ 670,952,898 $ 871,205,504 $ 964,201,508 20% Limitation Debt Limit Equal to 20% of Assessed Valuation 131,917,779 134,190,580 174,241,101 192,840,302 Total Debt Applicable to 20% Limit 97,570,000 90,065,000 106,130,000 97,065,000 34,347,779 $ 44,125,580 $ 68,111,101 $ 95,775,302 73.96% 67.12% 60.91% 50.33% 39,575,334 $ 40,257,174 $ 52,272,330 $ 57,852,090 220,000 205,000 190,000 39,355,334 $ 40,052,174 $ 52,082,330 $ 57,852,090 0.56% 0.51% 0.36% 0.00% Net Full Cash Assessed Value 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 Debt Applicable to 6% Limit Legal 6% Debt Margin (Available Borrowing Capacity) Total net debt applicable to the limit as a percentage of debt limit $ Source: Maricopa County Treasurer's Office and City financial records and reports Page 196 Table 18 Fiscal Year 2019 2020 2021 2022 2023 2024 $ 1,043,418,163 $ 1,183,659,155 $ 1,360,568,112 $ 1,586,384,072 $ 1,771,783,740 $ 2,364,310,372 208,683,633 236,731,831 272,113,622 317,276,814 354,356,748 472,862,074 112,980,000 102,605,000 95,275,000 114,070,000 108,255,000 108,255,000 $ 95,703,633 $ 54.14% $ 62,605,090 134,126,831 $ 43.34% $ 71,019,549 176,838,622 $ 35.01% $ 81,634,087 62,605,090 0.00% Page 197 $ 71,019,549 0.00% $ 42,104,087 48.42% $ 35.95% $ 39,530,000 $ 203,206,814 95,183,044 58,698,044 38.33% $ 30.55% $ 36,485,000 $ 246,101,748 106,307,024 22.89% $ 33,085,000 $ 73,222,024 31.12% 364,607,074 141,858,622 33,085,000 $ 108,773,622 23.32% Table 19 City of Goodyear Pledged‐Revenue Coverage For the Fiscal Years Ending June 30, (Unaudited) Public Improvement Corporation Municipal Facilities Revenue Bonds Fiscal Year Ended Operating Pledged June 30 Revenue Revenue 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 82,672,164 87,880,128 95,623,345 107,069,770 116,486,271 152,851,661 167,084,631 191,216,325 198,125,275 251,700,701 59,861,110 67,903,484 68,619,826 69,446,051 116,789,415 116,812,121 139,901,726 158,008,523 160,955,757 200,317,355 Debt Service Principal 230,000 235,000 3,220,000 3,500,000 5,840,000 6,110,000 6,920,000 7,787,680 3,381,236 2,865,000 Interest 5,458,563 5,451,663 3,674,649 4,710,941 4,563,216 4,299,271 3,493,813 2,648,118 2,302,727 2,161,340 Coverage 10.52 11.94 9.95 8.46 11.23 11.22 13.43 15.14 28.32 39.85 Water & Sewer Bonds & Loans Fiscal Year Less: Net Ended Operating Operating Operating June 30 Revenue Expenses Revenue 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 24,748,802 27,964,881 31,380,884 35,230,057 42,658,585 60,392,907 62,983,880 53,394,756 53,005,605 72,942,490 13,405,653 15,205,094 18,471,783 13,551,129 19,584,574 26,552,787 32,793,218 32,972,216 31,754,447 37,924,720 11,343,149 12,759,787 12,909,101 21,678,928 23,074,011 33,840,120 30,190,662 20,422,540 21,251,158 35,017,770 Source: City Financial Records and Reports Page 198 Debt Service Principal 1,467,770 1,496,834 1,682,550 1,742,801 1,613,157 2,283,620 2,439,193 2,229,877 2,320,674 2,371,588 Interest 2,207,414 2,159,000 2,268,124 2,292,417 2,014,361 1,199,376 5,071,602 5,369,470 5,295,390 5,206,168 Coverage 3.09 3.49 3.27 5.37 6.36 9.72 4.02 2.69 2.79 4.62 Table 20 City of Goodyear Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) Fiscal Year Population 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 74,743 77,776 78,189 83,512 84,659 88,870 95,294 101,662 106,090 116,460 Personal Per Capita Income (in thousands) Personal Income $ $ $ $ $ $ $ $ $ $ 2,001,907 1,871,990 2,157,938 2,443,812 2,615,370 2,875,389 3,083,237 3,554,917 3,969,888 4,749,122 $ $ $ $ $ $ $ $ $ $ Education Median Age 26,784 24,069 27,599 29,263 30,893 32,355 32,355 34,968 37,420 40,779 Source: Bureau of Labor Statistics and City Financial Records *2024 World Population Review ‐ BLS not updated since 7/23 Page 199 35.6 36.7 36.7 37.1 37.1 38.2 38.7 38.7 38.7 40.4 Level in Years of Schooling Unemployment Rate 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 5.7% 5.5% 4.4% 4.2% 4.8% 9.4% 6.9% 3.6% 4.1% 3.8% Table 21 City of Goodyear Principal Employers Current Fiscal Year and Nine Fiscal Years Prior (Unaudited) Major Corporation Fiscal Year Fiscal Year 2015 2024 Percentage of Total City Employees Rank Employment Percentage of Total City Employees Rank Employment Amazon Fulfillment 2,260 1 4.89% UPS ‐ Regional Ops Center 1,860 2 4.03% Chewy.com 1,490 3 3.23% Abrazo Healthcare (West Valley Hospital) 750 2 2.16% 1,150 4 2.49% Macys 600 4 1.73% 1,020 5 2.21% 0.00% 569 6 1.23% Meyer Berger Subzero / Wolf 428 7 1.23% 510 7 1.10% City of Hope (Cancer Treatment Centers of America) 650 3 1.87% 500 8 1.08% Mlily USA 420 9 0.91% Andersen Windows 400 10 0.87% Arizona State Prison/Perryville 850 1 2.45% City of Goodyear 527 5 1.52% Amazon.com 500 6 1.44% McLane Sunwest 360 8 1.04% Aeroturbine 300 9 0.86% Lockheed Martin 250 10 0.72% Total 5,215 15.02% 10,179 Source: City Records (Employment numbers are self‐reported; does not include grocery/retail stores) 2024 labor force = 46,189 ; 2015 labor force = 34,709 Page 200 22.04% Table 22 City of Goodyear Full‐time Equivalent City Government Employees by Function Last Ten Fiscal Years (Unaudited) Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 69 28 18 55 29 18 62 31 18 50 31 19 83 31 23 83 32 24 83 32 24 109 34 34 111 34 36 113 36 38 93 30 21 96 35 50 103 38 50 108 42 49 111 43 46 114 49 50 114 49 52 136 53 65 148 58 64 148 69 64 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 7 106 19 11 0 6 15 93 29 19 9 106 20 14 0 8 16 95 33 25 10 106 20 14 0 8 16 111 35 28 14 126 21 16 0 11 20 138 32 31 11 138 24 18 0 11 24 148 37 40 14 138 29 19 0 12 24 155 41 48 13 527 531 548 572 644 680 706 837 904 947 Source: City Financial Records and Reports Page 201 City of Goodyear Operating Indicators by Function Last Ten Fiscal Years (Unaudited) Function 2015 General Government City Clerk's Office # of records requests 598 City Prosecutor's Office Charges filed/charges adjudicated (resolved) 3,623 City Manager's Office % of survey respondents rating "Your Neighborhood as a Place to Live" as good to excellent 95% Digital Communications News releases/media updates NA Growth of Digital assets (Facebook, Twitter, Instagram, & Linkedin combined 136 Total newsletter pages sent to citizens Number of visits to website 633,643 Number of web pages viewed 1,855,914 Number of graphics/photography projects completed 135 2016 2017 2018 629 770 904 3,608 4,261 4,031 93% 93% 91% 88 126 144 543,565 1,472,765 103 128 302,777 1,500,539 157 132 9,650 232 588,580 1,271,883 318 Police # of total arrests # of moving violations citations 2,846 5,919 2,661 3,479 3,296 4,382 2,808 2,281 Fire # of emergency responses # of fires extinguished # of inspections 6,972 205 1,539 6,002 165 1,253 7,498 214 2,050 9,115 252 853 6,254 1,009 196,863 5,914 1,442 201,704 5,772 1,512 208,083 5,254 1,166 217,700 <1 2,868 NA 5,610 NA 5,732 NA 5,228 1 0.96 1 1 1 1 1 1 144 5.05% 362 5.06% 204 6.00% 220 3.12% 74,527 23,151,438 188,000 23,151,438 249,000 23,151,438 275,000 23,151,438 3.85% 25.71% 8.86% 2.75% 4.04% ‐3.80% 11.66% 14.37% 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 Economic Vitality Sales Tax growth (% annual change) Bed Tax growth (% annual change) Page 202 Table 23 2020 2019 2021 2022 2023 2024 767 898 1,106 1,008 1,430 1,558 3,656 3,032 3,959 3,539 5,965 5,405 95% 95% 93% 93% 86% 86% NA 14,380 192 480,518 1,407,259 143 132 22,307 206 533,395 1,450,461 485 114 28,466 194 685,787 1,615,332 177 59 31,152 204 877,105 1,984,408 494 81 10,178 196 528,643 1,842,961 232 126 10,886 196 1,053,351 2,554,524 113 1,585 2,327 1,478 2,465 2,456 2,844 4,462 4,561 4,124 3,438 3,933 3,590 9,583 204 909 9,671 182 2,024 9,681 210 4,183 10,406 193 3,235 11,423 188 5,334 12,333 208 5,539 4,941 1,309 226,869 5,205 1,407 233,432 4,146 1,379 256,488 4,372 1,480 271,179 5,288 1,810 275,128 4,811 2,015 237,865 NA 5,137 NA 1,490 NA 60 <1 1,235 NA 2,113 NA 3,319 1 1 1 1 1 1 NA 100% NA 100% NA 100% 234 2.23% 143 4.44% 258 4.45% 320 4.83% 362 6.01% 341 6.04% 299,000 23,151,438 283,093 23,250,000 266,262 23,295,000 1,236,522 23,675,000 2,069,276 23,675,000 2,241,671 24,018,500 13.50% 9.60% 37.90% ‐6.60% 21.00% 29.20% 13.30% 45.30% 2.10% ‐0.30% 21.50% 2.70% Page 203 City of Goodyear Operating Indicators by Function Last Ten Fiscal Years (Unaudited) Function 2015 2016 2017 2018 25,320 26,323 26,792 29,911 536 503 592 816 Water Service # of residential customers # of multifamily customers # of commercial customers Water Service Connections Water production daily peak demand (million gallons per day) Reclaimed Water Supplied (million gallons per day) 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 17,733 36 839 18,552 12.90 0.13 Wastewater # of residential customers # of multifamily customers # of commercial customers Sewer Service Connections Sewage Treated (millions gallons per day) 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 Other Public Works Street resurfacing (miles) Potholes repaired 83.23 1,253 109.00 1,339 70.33 756 105.27 1,344 Citizen & Neighborhood Resources # of new Code Enforcement cases processed per year 2,863 3,544 3,212 2,738 Municipal Services # of homes serviced by Residential Refuse Collection # of citizens serviced by Household Hazardous Waste collection program Source: City Financial Records and Reports NA ‐ information is not readily available at time of production (1) Large increase is due to a one‐time hiring of special census employees (2) Large increase is due to inclusion of library visitors in FY2016 and new Recreation Center in FY2022 Page 204 Table 23 2019 2020 2021 2022 2023 2024 29,673 29,673 31,864 33,094 34,984 35,939 631 418 469 361 512 852 19,333 38 621 19,992 12.40 NA 19,374 38 636 20,048 13.60 NA 20,284 39 1,054 21,377 15.30 NA 21,688 60 1,025 21,464 16.90 NA 22,376 61 443 21,524 16.00 NA 22,338 62 459 22,007 18 NA 19,325 16 270 20,292 4.70 20,383 16 271 20,670 4.69 20,383 16 271 20,670 4.69 22,732 60 444 21,781 5.82 23,561 44 497 21,781 5.85 23,562 46 530 22,142 7.55 51.56 586 133.41 60 116.00 103 102.20 67 72.80 83 56.40 87 2,615 1,943 2,488 3,352 3,151 2,914 Page 205 Table 24 City of Goodyear Capital Asset Statistics by Function Last Ten Fiscal Years (Unaudited) Function Public Safety Police: Stations Police Vehicles Fire Stations Highways and Streets Street (miles) Streetlights Traffic signals Culture and Recreation Parks Parks Acreage Swimming Pools Tennis Courts Recreation/Community Centers Water Water Mains (miles) Fire Hydrants Storage capacity (Millons of Gallons) Wastewater Sanitary Sewers (miles) Storm Sewers (miles) Treatment capacity (MGD) (thousands of gallons) Source: City Financial Records and Reports Page 206 Fiscal Year 2017 2018 2015 2016 2019 2020 2021 2022 2023 2024 4 133 6 4 134 7 6 150 6 5 133 6 5 139 5 4 147 5 2 155 7 2 191 7 2 191 7 2 213 8 934 8,832 86 934 9,041 89 934 8,651 89 939 9,184 92 945 9,635 93 1,012 9,635 95 1,041 9,991 102 1,136 10,198 106 1,147 10,422 108 1,149 10,507 112 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 18 206 1 6 1 20 238 2 8 2 20 252 2 8 2 20 252 2 8 2 308 2,951 16 330 3,031 16 336 3,152 16 326 3,177 16 330 3,348 16 331 3,461 18 353 3,475 18 374 3,575 18 408 3,655 16 430 4,302 14 242 55 5.6 254 54 5.6 260 265 276 270 276 55 N/A N/A N/A N/A 5.6 5.6 5.6 5.6 5.3 284 62 7.6 292 45 7.6 301 47 7.6 ANNUAL COMPREHENSIVE FINANCIAL REPORT City of Goodyear, Arizona Financ e Depa rtment 1900 North Civic Square Goodyear, Ariz ona 85395 623-932-3015