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Table of Contents

INSTRUCTIONS FOR NAVIGATING IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
¾ Bookmarks for major sections are provided in the navigation pane on the left.
Click on the bookmark to jump directly to that section.
¾ If a “+” sign is at the left of a bookmark, click on the “+” to bring up
subheadings.
¾ All pages are linked to the Table of Contents. To jump to a specific page
or subsection from the Table of Contents, put the pointer finger on the title or
page number within and click the mouse.
¾ Click the “Table of Contents” text located in the top right hand corner of
any page or click the Table of Contents bookmark on the left.

Table of Contents

Government Finance Officers Association

Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to

Town of Gilbert
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021

Executive Director/CEO

Table of Contents

Annual Comprehensive
Financial Report
Year Ended June 30, 2022

Brigette Peterson, Mayor
Aimee Yentes, Vice Mayor
Kathy Tilque, Council Member
Laurin Hendrix, Council Member

Scott Anderson, Council Member
Scott September, Council Member
Yung Koprowski, Council Member

Patrick Banger, Manager
Prepared by the Finance & Management Services Department
Håkon Johanson, Finance & Management Services Director

TOWN OF GILBERT, ARIZONA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal
Organizational Report Chart

1
8

FINANCIAL SECTION
Independent Auditor's Report

11

Management's Discussion and Analysis (required supplementary information)

15

Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position
Statement of Activities

29
30

Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities
Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Streets Special Revenue Fund
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to the Financial Statements
Summary of Significant Accounting Policies
Prior Period Adjustment
Deposits and Investments
Taxes Receivable and Due from Other Governments
Lease Receivables
Interfund Receivables and Payables
Capital Assets
Construction-in-Progress and Commitments
Long-Term Debt
Risk Management
Pensions and Other Postemployment Benefits
Postemployment Healthcare Benefits
Fund Balance Classifications of the Governmental Funds
Capital Contributions
Interfund Transfers
Individual Fund Disclosures
Contingent Liabilities
Pledged Revenues
Investment in Joint Venture
Tax Abatements
Required Supplementary Information
Schedule of the Proportionate Share of the Net Pension Liability - ASRS
Schedule of Changes in the Net Pension Liability and Related Ratios - PSPRS - Police
Schedule of Changes in the Net Pension Liability and Related Ratios - PSPRS - Fire
Schedule of Pension Contributions - ASRS
Schedule of Pension Contributions - PSPRS
Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios
Notes to Pension Plan Schedules - Actuarially Determined Contribution Rates

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TOWN OF GILBERT, ARIZONA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
TABLE OF CONTENTS
Page
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual:
Streets and Traffic Capital Projects Fund
Parks Capital Projects Fund
Municipal Facilities Capital Projects Fund
Debt Service Fund
Special Assessments Debt Service Fund
Grants Fund
Special Districts Fund
Other Special Revenue Fund
Other Capital Projects Fund
Combining Statement of Net Position - Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
STATISTICAL SECTION
Financial Trends
Net Position by Component - Last Ten Fiscal Years
Changes in Net Position - Last Ten Fiscal Years
Program Revenues by Function - Last Ten Fiscal Years
Fund Balances of Governmental Funds - Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years
Revenue Capacity
Sales Tax Collections by Category - Last Ten Fiscal Years
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years
Debt Capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
Direct and Overlapping Governmental Activities Debt - Current Fiscal Year-End
Legal Debt Margin Information - Last Ten Fiscal Years
Pledged-Revenue Coverage - Last Ten Fiscal Years
Demographic and Economic Information
Demographic and Economic Statistics - Last Ten Fiscal Years
Principal Employers - Current Fiscal Year and Nine Years Ago
Operating Information
Full-time Equivalent Employees by Function - Last Ten Fiscal Years
Operating Indicators by Function - Last Ten Fiscal Years
Capital Asset Statistics by Function - Last Ten Fiscal Years
Other information
Property Value, Construction and Bank Deposits - Last Ten Fiscal Years
System Development Fees - Current Fiscal Year-End
Property Tax Levies and Collections - Last Ten Fiscal Years
Principal Property Taxpayers - Current Fiscal Year-End

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Table of Contents

Table of Contents

Introductory Section

________________________________

Letter of Transmittal
Organizational Report Chart

Table of Contents

December 20, 2022
Honorable Mayor, Members of the Council, and Gilbert Citizens:
I am pleased to submit to you the Annual Comprehensive Financial Report for the Town of Gilbert (Gilbert), for the
fiscal year ended June 30, 2022. State law (Arizona Revised Statutes §9-481) requires that local governments publish a
complete set of audited financial statements within six months of the close of each fiscal year.
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 fairly stated in all material respects.
Heinfeld, Meech & Company, a firm of licensed certified public accountants, has issued an unmodified opinion on Gilbert’s
financial statements for the year ended June 30, 2022. The independent auditor’s report is located in the Financial
Section of this report.
This letter of transmittal is designed to complement Management’s Discussion and Analysis (MD&A) and should be read
in conjunction with it. The MD&A can be found in the Financial Section of this report.
GILBERT PROFILE
Governmental Structure
Gilbert is an Arizona Municipal Corporation, operating as a general law community as prescribed in the Arizona Revised
Statutes. Gilbert was incorporated July 6, 1920, and operates under the Council-Manager form of government. The
Mayor is a member of the Council and is elected by the voters for a four-year term. Six additional council members are
elected at-large to staggered four-year terms.
The Mayor is chairperson of the Council. The Town Manager (Manager) is appointed by the Council and serves as the
chief executive officer to oversee and carry out operations. During fiscal year 2022, the Manager administered Gilbert's
operations through a staff of 1,609 budgeted full-time equivalent positions.
Gilbert provides or administers a full range of services including public safety (police and fire protection and ambulance
transport), development services (planning, code enforcement, and engineering), public works (water, wastewater,
environmental services, environmental compliance, and streets), and parks and recreation services among others.
Transit and “dial-a-ride” services are provided through an intergovernmental agreement with the Regional Public
Transportation Authority. Library services, incarceration and animal control are provided through intergovernmental
agreements with Maricopa County.
Geography and Population
Gilbert is located in the southeastern section of the greater Phoenix metropolitan area in Maricopa County, bounded on
the north and east by the City of Mesa, on the west by the City of Chandler, on the southeast by the Town of Queen
Creek, and on the south by the Gila River Indian Community. Gilbert has a planning area of 72.6 square miles. The most
recent estimate of population as of July 1, 2021 is 273,796, which was derived from Maricopa Association of
Governments population estimates. The following graph depicts the ten-year population trend for Gilbert.

50 E. Civic Center Drive
Gilbert, AZ 85296

(480) 503-6000
gilbertaz.gov
1

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FACTORS AFFECTING FINANCIAL CONDITION
Public Safety Personnel Retirement System (PSPRS) Funding
After years of dedicated effort by Gilbert to pay down large unfunded liabilities in the PSPRS, Gilbert officially met and
exceeded its goal to be at least 90% funded in both the police and fire pension systems. Gilbert is the largest municipality
in the state of Arizona to reach this level of funding, and it was accomplished without raising taxes.
Public Infrastructure Financing
Gilbert recognized significant transportation and water-related infrastructure needs and was able to secure the bond
funding necessary to move forward with both types of projects. Gilbert citizens voted and approved $515.0 million in
transportation bonds; $188.9 million of which were issued in the spring of 2022. The Water Resources Municipal Property
Corporation Board and Gilbert’s Town Council approved bond funding in the amount of $473.0 million. The full amount
was issued in the spring of 2022.
Utility Rates
After successful completion of a utility rate study, new rates were approved by Council in April of 2022 to support the
infrastructure and operational needs for the Water and Environmental Service funds.
Growth and Construction
There were 1,358 new residential permits and 133 commercial permits issued in fiscal year 2022, which represents a
decrease from the prior fiscal year in residential and commercial permits of 803 and 86, respectively. The total value of all
new construction in fiscal year 2022, including commercial, was $441.5 million, a decrease of $261.0 million from fiscal
year 2021. The decreased activity in fiscal year 2022 was largely the result of to two factors. Fiscal year 2021 saw an
increase due to slowed activity in fiscal year 2020 that was onset from the effects of the COVID-19 pandemic and Gilbert
approaching buildout.
System Development Fees (SDFs) are collected for capital needs related to growth in the community. Council has
adopted SDFs for police, fire, general government, road maintenance, traffic signals, parks and recreation, water
resources, water, and wastewater. The fees are based on build-out system requirements to serve the projected
population and land uses. During fiscal year 2022, a total of $31.9 million was collected in SDFs compared to $59.9
million in fiscal year 2021. See above paragraph for explanation for decrease, which was planned in the fiscal year 2022
budget. Gilbert’s Town Council voted to stop collecting the General Government SDFs in June of 2022 as sufficient
money had been received to cover the growth-related costs and the fee was no longer needed to be collected.

2

Table of Contents
Economic Development
With nearly 280,000 residents, Gilbert is focused on sustaining the thriving community seen today well into the future. This
aim is supported through a commitment to develop a prosperous community, strong economy, and exceptional built
environment. Over the past few years, Gilbert has received numerous awards and recognitions, a few of which are
included below.

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AAA Bond rating from all three major rating agencies (S&P, Moody’s, and Fitch)
Best Place to Live in Arizona (Ranking Arizona, 2022)
6th Best City to Raise a Family in the West (Dwellics, 2022)
6th Best City for Renters (Forbes, 2022)
Gold Certified City for Data Management (What Works Cities, 2021)
Excellence in Built Environment and Excellence in Foundations of Livability (The US Nuclear Regulatory
Commission and the International City/County Manager's Association, 2021)
Best City for Small Business Recovery Since Pandemic (QuickBooks, 2021)
Best City for Remote Workers (RetailMeNot, 2021)
Most Prosperous Large City (Economic Innovation Group, 2020)
2nd Best City for First-Time Home Buyers (WalletHub, 2021)
3rd Safest City in Arizona (SafeWise, 2021)
4th Best School District in America - Gilbert Public Schools (Alarms.org, 2018)
5th Best City for Women Entrepreneurs (Fundera, 2020)

Gilbert is a community committed to education; 46.2% of residents age 25 and older hold a bachelor’s degree or higher,
compared with about 32.0% statewide and 35.1% nationally. Notable employers like Banner Health, Banner MD Anderson
Cancer Center, Dignity Health, Deloitte, Footprint, Silent-Aire, Northrop Grumman, Zero Electric Vehicles, Li-Cycle,
Lockheed Martin, and the worldwide headquarters of Isagenix benefit from this commitment to education and have helped
keep Gilbert’s fiscal year 2022 unemployment rate at 2.8%, as compared to 3.7% for the state. Knowledge assets that
support the community include Park University, the University of Arizona, Arizona State University Polytechnic Campus,
Chandler-Gilbert Community College, A.T. Still University, and numerous other colleges, universities, and technical
schools within a 30-minute commute. Additionally, more than 40 charter/private schools in town and three A-rated school
districts – Gilbert, Higley, and Chandler – serve the citizens of Gilbert.
The Gilbert Office of Economic Development (OED) is one of approximately 65 Accredited Economic Development
Organizations in the nation. Gilbert achieved re-accreditation through the International Economic Development Council in
2022, after initially being accredited in 2013, and was the first Arizona economic development organization and the
second municipality in the nation, to do so.
Fiscal year 2022 marked the end of the Economic Development five-year strategic plan, and over that time period, the
business development lines of service outperformed the previous five-year performance with the announcement of over
13,000 jobs, $1.3 billion in announced capital investment, and the absorption or development of 5.4 million square-feet of
space. The team also continued to focus on supporting Gilbert based businesses through the #GilbertTogether Business
Recovery Program (#GilbertTogether). The business resiliency component of #GilbertTogether provided nearly 1,500
hours of business coaching, delivered over 30 business training webinars, and awarded over 130 scholarships to Gilbert
residents.
Investment in the Heritage District continued with a focus on attracting and developing critical infrastructure to support
future growth. During fiscal year 2022, the Heritage District welcomed three new restaurants and a 32-unit townhome
development, Aspire Heritage District, which completed construction with an average unit sale price of $670 thousand.
The new mixed-use Heritage Park development received planning entitlements and is planning to break ground by the
end of 2022. At completion, Heritage Park will deliver over 800,000 square feet of new development including restaurant,
retail, and office space, as well as a 100-room hotel, and a 288-unit apartment complex. The University of Arizona also
completed an expansion onto the fourth floor of the University Building to support its College of Nursing program
expansion.
On the tourism front, demand has recovered to 2019 levels and is returning to the growth trend that was present prepandemic. Marketing campaigns continue to keep Gilbert top-of-mind for overnight and regional day visitors. Above
average room rates have produced record revenue. February and March 2022 saw a return to over 80% occupancy. The
strong performance at the end of the fiscal year may be a preview of high demand to come in February and March of
2023 with the Super Bowl in Glendale and the potential for a full Spring Training season.
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Table of Contents
Gilbert’s connectivity to major markets is provided through a comprehensive transportation network which includes the
SanTan Loop 202 and US-60 Superstition Freeways, Sky Harbor International Airport (Sky Harbor), and Phoenix-Mesa
Gateway Airport. This network provides access to Gilbert-based businesses while connecting the community to local,
national and international markets. Located just over 10 miles west of Gilbert, Sky Harbor Airport is served by 20 airlines.
Sky Harbor is one of the busiest airports in the nation for passenger traffic, seeing nearly 39 million passengers in fiscal
year 2021. Phoenix-Mesa Gateway Airport is located on Gilbert’s eastern border and handled 1.8 million passengers in
fiscal year 22 with flights to nearly 60 destinations throughout the United States and Canada. The airport also provides air
cargo services and is located within a Foreign Trade Zone.
Transaction Privilege (Sales) Tax Trend
Sales tax revenues represented 52.0% of General Fund revenues for fiscal year 2022, totaling approximately $141.4
million. Local sales taxes are collected by the Arizona Department of Revenue and remitted to Gilbert weekly. The
following graph depicts sales tax receipts by source for the past five years.

Property Taxes
State law requires municipalities to adopt a property tax levy based on the amount of scheduled and projected debt
service for the year plus a reasonable amount for delinquencies and certain costs. For fiscal year 2022, Gilbert’s property
tax rate was $0.99 per $100 of limited property valuation and was used exclusively for the payment of voter approved
general obligation bond debt. Gilbert does not levy a primary property tax for general operating purposes.
Limited Property Value
The limited property value of real property within the Gilbert annexed area is a vital economic forecast variable, as the
State Constitution contains regulatory restrictions on the amount of debt a community may have outstanding based on
limited property valuation. Taking the market value of a property and applying the statutory assessment rate derives the
limited property value. Residential properties are assessed at 10%, vacant land is assessed at 15%, and commercial
properties are assessed at 17.5%. This illustrates how crucial the additions of commercial properties are to the tax base.
The limited property valuation increased by 7.2% in fiscal year 2022 from $2.619 billion to $2.807 billion. The following
graph depicts the changes in the limited property valuation in Gilbert for the past ten years:

4

Table of Contents
State-Shared Revenues
State-shared revenues totaled $84.6 million for the General Fund and $18.9 million for the Streets Special Revenue Fund
in fiscal year 2022, representing approximately 30.1% of total General Fund revenues and 98.9% of total Streets Special
Revenue Fund revenues. State-shared revenues include allocations of state sales tax, income tax, gas tax, motor vehicle
in-lieu tax, vehicle license tax, and lottery funds. These revenues are shared based upon relative population in the State
as determined by the most recent population estimates of the United States Census Bureau.
Budget and Financial Policies
Gilbert’s financial policies establish the framework for overall fiscal planning and management. The policies set forth
guidelines for both current activities and long-range planning. The purposes of the financial policies are:
Balanced Budget – Gilbert is required by Arizona Revised Statutes to adopt a balanced budget each fiscal year.
A balanced budget is one in which the sum of estimated revenues and appropriated fund balances is equal to
appropriations.
Fiscal Conservatism – To ensure that Gilbert is always in solid financial condition, defined as:
Maximum efficiency – best possible service at the lowest possible cost
Cash solvency – the ability to pay bills
Budgetary solvency – the ability to balance the budget
Long-term solvency – the ability to pay future costs
Service level solvency – the ability to provide needed and desired services
Flexibility – To ensure Gilbert can respond to changes in the economy or new service challenges without an
undue amount of financial stress.
Transparency and Communication – To utilize best practices in communicating financial information to facilitate
sound decision-making, to promote openness and transparency, and to inspire public confidence and trust.
Adherence to the Highest Accounting and Management Practices – As set by the Governmental Accounting
Standards Board and the Government Finance Officers Association standards for financial reporting and
budgeting.
A five-year financial plan is developed for each operating fund, and current year decisions are made with a forecasted
future impact. Other financial policies that guide the budget include: maintaining a minimum general fund balance
sufficient to cover 90 days of ongoing operating expenditures and annual debt service payments; one-time revenues are
not applied toward ongoing expenditures; and an economic development reserve. Gilbert’s Council adopted a
comprehensive listing of policies of responsible financial management in November of 2011, with the latest revision
adopted in June of 2022. These policies are reviewed annually to ensure their continued relevance and adherence.
Long-Term Financial Planning
In addition to Gilbert’s General Plan and Capital Improvement Plan, Gilbert is developing infrastructure inventories
(including repair and replacement plans) and functional area master plans. Gilbert staff and Council also align both shortterm goals and resources toward the long-term realization of Gilbert’s established strategic focus areas: Strong Economy,
Prosperous Community and Exceptional Built Environment. In fiscal year 2019, Gilbert proudly unveiled its new mission
and “City of the Future” concept to anticipate change, create solutions and help people. Gilbert has implemented Franklin
Covey’s The 4 Disciplines of Execution, providing an exceptional tool for advancing these goals while managing the
challenges of the daily whirlwind, and Lean Six Sigma (Lean) process improvement events to optimize processes
throughout the organization to further enhance Gilbert’s long-term financial resiliency.

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Table of Contents
In fiscal year 2018, Gilbert introduced a fresh approach; Employees Driving Gilbert’s Excellence (EDGE) takes the best
parts of Continuous Quality Improvement and Lean Six Sigma. It teaches our employees to participate in organizational
transformation by aligning people, process, and technology in an ongoing effort to deliver efficiency and effectiveness
from a customer-centric point of view. When combined with clearly defined Wildly Important Goals, (WIGs) we are
constantly evaluating the work we do and asking ourselves, “Is this the most important thing we can do right now for our
customer?” Since departments are so diverse, it is hard to find a “one size fits all” approach. We believe that through the
marrying of our organizational transformation approach (EDGE) and The 4 Disciplines of Execution WIGs, we are
equipping the organization with a variety of quality tools and agile techniques in order to:
• Yield a Return on Investment
• Reduce Costs
• Increase Staff Capacity to Deliver Results

• Improve Service Delivery
• Increase Customer Satisfaction
• Empower Staff to Innovate
• Enhance the Organizational Culture

Gilbert continues to update its Long-Term Financial Plan, which includes an interactive Excel model. The model looks at
revenue and spending trends to predict what the financial sustainability of Gilbert would look like if those trends were to
continue. The main dashboard contains live “what if” variables that can be easily changed to help decision-makers see the
financial impact that individual changes make to the overall budget health into the future.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting (Certificate of Achievement) to the Town of Gilbert for its Annual
Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the 31st consecutive year that Gilbert
has received this prestigious award. To be awarded a Certificate of Achievement, we must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report that satisfies both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive
Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting this
year’s report to the GFOA to determine its eligibility for another certificate.
Gilbert also received the GFOA’s Distinguished Budget Presentation Award for our annual budget document. To qualify
for this award, our budget document was judged to be proficient as a policy document, a financial plan, an operations
guide, and a communications device. Gilbert has received this award for 23 consecutive years.
In addition, the International City/County Management Association recognized Gilbert with a Certificate of Excellence in
Performance Management for its data-driven management and reporting efforts. This marks the seventh consecutive year
that Gilbert has received this Certificate.
ACKNOWLEDGMENTS
The completion of this report is the result of the efficient and dedicated services of the entire staff of the Accounting
Division. I would like to give special recognition to Tanya Wright, Accounting Manager; Anthony St. George, Accounting
Supervisor; and Nicholas Baldelli, Accounting Supervisor who were primarily responsible for preparing this document. In
addition, I would like to thank staff from all Town departments for their contributions and assistance.
Finally, I wish to acknowledge the continued support of the Council and the Manager in providing the leadership
necessary for sound financial management.
Respectfully submitted,

Håkon Johanson
Finance & Management Services Director
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ORGANIZATIONAL REPORT CHART

Citizens of Gilbert

Mayor and Council

Town Clerk

Town
Manager

Municipal
Court

Town
Attorney

Advisory Boards and
Commissions

Utilities Board

Industrial
Development
Authority

Deferred
Compensation
Board

Self-Insured
Trust Board

Parks and
Recreation
Board

Mayor's Youth
Advisory
Committee

Judicial Selection
and Advisory
Comittee

Fire Public
Safety
Retirement

Police Public
Safety
Retirement

Redevelopment
Commission

Planning
Commission

Water Resources
Municipal
Property

Public Facilities
Municipal
Property

Veterans
Advisory Board

Task Forces and
Ad Hoc
Committees
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ORGANIZATIONAL REPORT CHART

Town Clerk

Town Manager

Municipal Court

Town Attorney

Digital
Government

Assistant to the
Town Manager

Intergovernmental
Relations

Assistant to the
Town Manager

Assistant Town
Manager

Assistant Town
Manager

Information
Technology

Police

Finance and
Management
Services

Human
Resources

Fire and Rescue

Parks and
Recreation

Development
Services

Public Works

Management and
Budget

Assistant Town
Manager

Economic
Development

= Employment contracts directly with Council

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Financial Section

________________________________
Independent Auditor’s Report
Management's Discussion and Analysis
Basic Financial Statements
Government-wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements

Required Supplementary Information
Combining and Individual Fund Statements and
Schedules

Table of Contents

Independent Auditor’s Report

Honorable Mayor and Members of the Town Council
Town of Gilbert, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type
activities, each major fund, and the aggregate discretely presented component unit and remaining
fund information of Town of Gilbert, Arizona (Town), as of and for the year ended June 30, 2022, and
the related notes to the financial statements, which collectively comprise the Town’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 discretely presented component unit and remaining fund information of the
Town of Gilbert, Arizona, as of June 30, 2022, and the respective changes in financial position and,
where applicable, cash flows thereof and the respective budgetary comparison for the General Fund
and Streets Special Revenue Fund 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 Town of Gilbert, 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.
Change in Accounting Principle
As described in Note 1, the Town implemented the provisions of the Governmental Accounting
Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022, which
represents a change in accounting principle. Our opinion is not modified with respect to this matter.
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.

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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 Town’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.
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:
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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 Town’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 Town’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, 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.

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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’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 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
December 20, 2022, on our consideration of Town of Gilbert, 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 Town of Gilbert, 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 Town of Gilbert, Arizona’s internal control over
financial reporting and compliance.

Heinfeld, Meech & Co., P.C.
Tucson, Arizona
December 20, 2022

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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of Gilbert, we offer this narrative overview and analysis of Gilbert’s financial activities for
the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here
in conjunction with information provided in the Letter of Transmittal.

Financial Highlights














Gilbert’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of
resources at the end of the fiscal year by $2.1 billion, which is an increase over the prior year of
$103.6 million, due to increases in both governmental and business-type activities. Included in this
amount, defined as net position, is $593.6 million of unrestricted net position, of which $179.6 million
is invested in joint ventures with the Cities of Mesa and Chandler and the Town of Queen Creek, and
$414.0 million which may be used to fund ongoing operations in future years.
Governmental activities increased net position by $86.5 million, which was primarily due to higher
than expected taxes totaling $249.7 million, offset by net program expenses of $151.4 million. The
business-type activities increased net position by $17.0 million, primarily due to capital grants and
contributions in the Water and Wastewater funds of $21.2 million and $7.9 million, respectively.
Net position includes $885.8 million net investment in capital assets in governmental activities such
as streets, parks, and municipal buildings and a $541.0 million net investment in business-type
activities in water, wastewater and environmental services infrastructure and equipment. Amounts
increased in the governmental activities by $59.8 million from the prior year which is attributed to
ongoing capital projects. Amounts increased in the business-type activities by $56.0 million in fiscal
year 2022 primarily due to the construction of various capital projects including wastewater recharge
facility upgrades ($7.1 million), improvements to transmission mains ($5.8 million), and waterline
replacements ($5.1 million).
The combined fund balance for all governmental funds is $562.3 million. Unrestricted fund balance is
classified as Committed, Assigned, and Unassigned. The unrestricted portion of all governmental
funds is $238.9 million which is an increase of $31.9 million. The increase is primarily due to higher
collections of sales tax over the prior fiscal year of $19.0 million and intergovernmental revenue of
$9.1 million.
The General Fund unrestricted fund balance is $240.3 million, of which $86.9 million has been
assigned for capital replacement, capital improvements, and highways and streets.
The General Fund unassigned balance of $153.4 million is approximately 78.9% of total fund
expenditures.
Gilbert’s total bonded debt outstanding at the end of the fiscal year was $955.5 million, as compared
to $340.3 million at the end of fiscal year 2021, which is an increase of $615.2 million primarily due to
the issuance of general obligation bonds of $188.9 million for transportation and infrastructure needs
and Municipal Property Corporation revenue bonds of $473.0 million for the construction of a new
water treatment plant.
Gilbert’s total net pension liability at the end of the fiscal year was $76.4 million, as compared to
$153.6 million at the end of fiscal year 2021 primarily due to increased net investment income earned
in the pension plans.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Gilbert’s basic financial
statements, which are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements.

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Table of Contents
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the finances of Gilbert as a whole, in a manner similar to a private-sector business.
The statement of net position presents information on all of Gilbert’s assets, liabilities, and deferred
inflows/outflows 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 Gilbert’s financial position is
improving or declining.
The statement of activities presents the changes in net position from the previous year. All changes in
net position are reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will result in cash flows in future fiscal periods (e.g., earned but unused vacation leave).
Both government-wide financial statements distinguish functions of Gilbert that are principally supported
by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover a majority, or all, of their costs through user fees and charges (business-type activities). The
governmental activities of Gilbert include general government, public safety, highways and streets, parks
and recreation, and transportation. The business-type activities include water, wastewater, and
environmental services.
The government-wide financial statements also include the Industrial Development Authority (IDA) as a
component unit of Gilbert. The IDA provides financing for eligible private sector entities to acquire and
construct facilities deemed to be in the public interest. The financial information for the IDA is presented
separately in the statements.
The government-wide financial statements can be found on pages 29-31 of this report.

Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources segregated for specific
activities or objectives. Gilbert, like other state and local governments, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of Gilbert’s funds can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds
Governmental funds account for essentially the same functions reported as governmental activities in the
government-wide financial statements. Unlike the government-wide financial statements, however,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as balances of spendable resources available at fiscal year-end. This information may be useful
in evaluating a government’s near-term financing ability.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of Gilbert’s near-term financing decisions. To
facilitate this comparison, reconciliations are provided with the fund financial statements.
The basic governmental fund financial statements can be found on pages 32-39.

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Table of Contents
Proprietary Funds
Gilbert maintains two different types of proprietary funds. Enterprise funds report the same functions
presented as business-type activities in the government-wide financial statements, which include water,
wastewater, and environmental services. Internal service funds accumulate and allocate costs internally
among the various functions. Gilbert uses internal service funds to account for maintenance of its fleet of
vehicles, and employee health, dental and workers’ compensation self-insurance. The assets and
liabilities of the internal service funds are included in the governmental activities column of the
government-wide statement of net position. Costs of internal service funds are allocated to the various
user functions on the government-wide statement of activities. Enterprise funds provide the same
information as the government-wide financial statements, only with more detail. Internal service funds are
combined into a single column on the proprietary funds statements. Additional detail for the internal
service funds can be found on pages 114-116.
The proprietary fund statements can be found on pages 42-44.

Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to obtain a full
understanding of the data provided in the government-wide and fund financial statements and should be
read with the financial statements.
The notes to the financial statements can be found on pages 45-86.

Government-wide Financial Analysis
Net position serves as a useful indicator of a government’s financial position. The following table reflects
the condensed Statement of Net Position as of June 30, 2022 and 2021.
Town of Gilbert
Condensed Statement of Net Position

Current and other assets
Capital assets
Total assets

Governmental Activities
2021
2022
(as restated)
$ 659,022,483 $ 402,154,547
1,084,862,284
1,070,946,764
1,743,884,767
1,473,101,311

Business-type Activities
2021
2022
(as restated)
$ 941,094,225 $ 475,396,975
701,649,628
651,815,720
1,642,743,853
1,127,212,695

Total
2021
2022
(as restated)
$ 1,600,116,708 $ 877,551,522
1,786,511,912
1,722,762,484
3,386,628,620
2,600,314,006

Deferred outflows of resources

44,995,792

71,641,854

8,021,440

7,290,543

53,017,232

78,932,397

Long-term liabilities
Other liabilities
Total liabilities

475,958,077
66,842,187
542,800,264

385,260,387
56,256,857
441,517,244

657,659,546
21,745,955
679,405,501

170,481,474
16,038,594
186,520,068

1,133,617,623
88,588,142
1,222,205,765

555,741,861
72,295,451
628,037,312

Deferred inflows of resources

61,370,353

5,064,583

6,630,520

300,035

68,000,873

5,364,618

Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position

885,750,306
844,067,206
115,550,048
91,916,826
183,409,588
162,177,306
$ 1,184,709,942 $ 1,098,161,338

$

541,025,300
506,806,981
13,500,206
22,716,849
410,203,766
418,159,305
964,729,272 $ 947,683,135

1,426,775,606
1,350,874,187
129,050,254
114,633,675
593,613,354
580,336,611
$ 2,149,439,214 $ 2,045,844,473

Net position consists of three components. The largest portion of Gilbert’s net position (66.4%) is its
investment in capital assets (land, buildings, equipment, infrastructure, etc.), less depreciation and any
related debt used to acquire those assets that is still outstanding. Gilbert uses these capital assets to
provide services to citizens; consequently, these assets are not available for appropriation. Although
Gilbert’s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt are provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of Gilbert’s net position (6.0%) represents resources that are subject to external
restrictions on how they may be used. The remaining portion of net position (27.6%) includes $179.6
million which is invested in joint ventures with the Cities of Mesa, Chandler, and the Town of Queen
Creek. The remaining $414.0 million may be used to meet the government’s ongoing obligations to
citizens, customers, and creditors.
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Table of Contents
Governmental Activities
Governmental activities in fiscal year 2022 increased Gilbert’s net position by $86.5 million. Taxes and
program revenues (charges for services and grants and contributions that are clearly identifiable to
operating functions) were Gilbert’s most significant revenue sources comprising 99.7% of total revenues
for governmental activities after consideration of investment income. Taxes (local and state-shared) were
$249.7 million, an increase of $27.0 million from the prior year. Program revenues were $123.7 million,
an increase of $4.8 million from the prior year, which was mostly due to an increase in charges for
services and capital grants and contributions specifically related to highways and streets.
The other component of the change in net position is expenses. The largest expense functions were
public safety, which represented 42.1%, and highways and streets, which represented 22.9% of total
governmental activities expenses, which is consistent with prior year. Total expenses increased $4.7
million (1.7%) over the prior fiscal year.
The following table details the changes in net position for governmental and business-type activities.
Changes in Net Position
Governmental
Activities
2022

Business-type
Activities

2021

Total

2022

2021

2022

2021

$ 123,996,189

Revenues
Program revenues:
17,798,829

$ 111,151,614

$ 106,197,360

$ 133,374,177

Operating grants and contributions

Charges for services

$

40,308,725

22,222,563

$

43,619,284

2,606,936

1,960,312

42,915,661

45,579,596

Capital grants and contributions

61,138,815

57,446,673

29,360,416

22,185,833

90,499,231

79,632,506
123,929,742

General revenues:
Sales taxes

142,901,420

123,929,742

-

-

142,901,420

Property taxes

30,355,662

28,603,134

-

-

30,355,662

28,603,134

Unrestricted state-shared revenue

72,666,521

66,462,776

-

-

72,666,521

66,462,776

Other taxes

3,746,779

3,677,995

-

-

3,746,779

3,677,995
4,140,341

Grants and contributions not
restricted to specific programs
Investment income
Gain on sale of capital assets
Other
Total revenues

2,125,348

4,140,341

-

-

2,125,348

(14,992,902)

525,621

(6,500,296)

31,742

(21,493,198)

557,363

238,370

(4,507,614)

240,840

405,475

479,210

(4,102,139)

1,079,701

935,773

558,561

74,553

1,638,262

1,010,326

361,791,002

342,632,554

137,418,071

130,855,275

499,209,073

473,487,829

Expenses
Management and policy

32,299,069

41,160,529

-

-

32,299,069

41,160,529

Finance and management services

3,089,623

2,942,943

-

-

3,089,623

2,942,943

Court

4,623,035

4,356,048

-

-

4,623,035

4,356,048

Development services

11,876,375

11,388,765

-

-

11,876,375

11,388,765

Police

67,491,794

65,100,377

-

-

67,491,794

65,100,377

Fire

48,219,681

38,173,616

-

-

48,219,681

38,173,616

Highw ays and streets

63,021,711

62,500,833

-

-

63,021,711

62,500,833

Parks and recreation

32,718,736

28,975,323

-

-

32,718,736

28,975,323

-

609,252

-

-

-

609,252

3,523,440

6,494,882

-

-

3,523,440

6,494,882

8,221,060

8,716,132

-

-

8,221,060

8,716,132

-

-

55,761,046

52,258,586

55,761,046

52,258,586

Transportation
Non departmental
Interest and fiscal charges
on long-term debt
Water
Wastew ater

-

-

36,907,806

31,223,881

36,907,806

31,223,881

Environmental services

-

-

27,860,956

25,644,481

27,860,956

25,644,481

275,084,524

270,418,700

120,529,808

109,126,948

395,614,332

379,545,648

86,706,478

72,213,854

16,888,263

21,728,327

103,594,741

93,942,181

(157,874)

(2,665,000)

157,874

2,665,000

-

-

86,548,604

69,548,854

17,046,137

24,393,327

103,594,741

93,942,181

1,098,161,338

1,010,497,462

947,683,135

901,466,712

2,045,844,473

1,911,964,174

Total expenses
Increase in net position before
transfers
Transfers
Change in net position
Net position, beginning,
as restated (see Note 2)
Prior period contributed capital
not previously reported
Net position, ending

-

18,115,022

-

21,823,096

-

39,938,118

$ 1,184,709,942

$ 1,098,161,338

$ 964,729,272

$ 947,683,135

$ 2,149,439,214

$ 2,045,844,473

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Table of Contents
Business-type Activities
Gilbert’s net position for business-type activities increased by $17.0 million mainly due to development
related growth, including $12.7 million in system development fee collections and $16.2 million in water,
wastewater, and environmental services infrastructure contributed by developers. The revenues for
business-type activities increased 5.0% mainly due to the increase in contributions from developers in the
Water and Wastewater funds. Expenses increased $11.4 million (10.4%) from the prior year primarily due
to increased cost of operation and maintenance, an increase in depreciation expense, and an increased
cost for water and fuel.

Financial Analysis of Gilbert’s Funds
As noted earlier, Gilbert maintains fund accounting to demonstrate compliance with budgetary and legal
requirements. The following is a brief discussion of financial highlights from the fund financial statements.

Governmental Funds
The focus of the governmental funds is to provide information on near-term inflows, outflows, and
balances of resources available for spending. Such information is useful in assessing Gilbert’s financing
requirements. Unrestricted fund balance may serve as a useful measure of a government’s net
resources available for spending at the end of the fiscal year. Gilbert operated and separately reported
the following major governmental funds:








General
Streets Special Revenue
Streets and Traffic Capital Projects
Parks Capital Projects
Municipal Facilities Capital Projects
Debt Service
Special Assessments Debt Service

All nonmajor funds are combined for reporting purposes captioned “Other Governmental Funds”.
As of the end of fiscal year 2022, the governmental funds reported ending unrestricted fund balances
totaling $238.9 million, an increase of $31.9 million in comparison with the prior fiscal year. See
explanations of variances below.
General Fund
The General Fund is the primary operating fund. At the end of fiscal year 2022, the fund balance of the
General Fund was $252.0 million, an increase of $24.2 million from the prior year. This increase is mainly
due to the sales tax revenue collected that exceeded the prior year’s collections by $17.5 million, a $5.6
million increase in charges for service, an increase in intergovernmental revenues of $9.5 million
attributable to an increase in state shared sales tax during the fiscal year, and an increase of $4.4 million
in other entities’ participation compared to prior year. Additionally, general fund expenditures decreased
overall. Police expenditures decreased $13.0 million as there was a one-time PSPRS paydown expense
in the previous fiscal year. Non departmental expenses also decreased $13.0 million due to one-time
Coronavirus Aid, Relief, and Economic Security (CARES) funds available in the previous year. These
expenditure decreases were offset by a $4.5 million increase in Fire expenditures as Gilbert’s ambulance
service continues to grow and $2.6 million increase in Park and Recreation expenses as Gilbert returns to
pre-pandemic operations.

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The unrestricted portion of the fund balance was $240.3 million, of which $36.4 million has been assigned
for capital replacement, $12.5 million for highways and streets, $38.0 million for future capital projects.
As a measure of the General Fund’s liquidity, it is useful to compare its available fund balance to total
fund expenditures. The General Fund’s unassigned fund balance represents 78.9% of total General
Fund expenditures for the current year. The prior year percentage was 66.8%; this increase reflects an
increase in unassigned fund balance, which is primarily due to the increased sales tax compared to the
prior year.
Key elements of General Fund sources and uses are as follows:
 Overall, revenues exceeded expenditures in the General Fund by $77.9 million. Net other
financing sources and uses were ($53.7) million, resulting in an increase in fund balance of
$24.2 million. The transfers out of $55.3 million were primarily to pay scheduled debt payments
($10.2 million) and finance capital projects ($34.9 million) including Municipal Center I renovation
($9.8 million), redevelopment improvements to the Vaughn Ventilator ($6.9 million), and
replacement of the police information system ($2.3 million).
 Total revenues of $272.2 million represented an increase of $28.0 million over the prior year due
to an increase in sales taxes (including state shared sales taxes) collected in the current year
compared to the prior year.
 Total expenditures of $194.4 million represented a decrease of $14.4 million from the prior year
mainly due to a decrease in police and non-departmental expenditures as explained below.
 Local sales tax and intergovernmental revenues are the largest revenue sources for the General
Fund, accounting for 89.1% of the total revenues, which is consistent with the prior year.
 Local sales tax, which accounts for 52.0% of total General Fund revenues, increased $17.5
million (14.1%) from the prior fiscal year due to increased retail sales from new and existing
businesses.
 Police expenditures decreased by $9.9 million due to excess contributions of $13.0 million made
to the Public Safety Personnel Retirement System (PSPRS) in the previous fiscal year that were
not made in the current year.
 Non-departmental expenditures decreased $13.0 million compared to prior year as the previous
fiscal year included $15.6 million in funds directed back into the community to support citizens
and business during the COVID-19 pandemic.

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Streets Special Revenue Fund
The Streets Fund contains state-shared highway user revenues funds (HURF) that are required by state
statute to be used for highways and streets related purposes. Total revenues in the Streets Fund
remained relatively stable from prior year, with a $1.0 million (5.7%) increase due to receiving additional
HURF funds. Total expenditures were relatively comparable to the prior fiscal year with an increase of
$759 thousand (5.2%).
Streets and Traffic Capital Projects
The Streets and Traffic Capital Projects Fund consists of system development fees and
intergovernmental revenues and the expenditure of those funds to purchase or construct capital assets.
The fund balance increased by $205.4 million during the year. This was mainly due to the issuance of
$188.9 of general obligation bonds for transportation and infrastructure improvement projects. The larger
projects with capital expenditures during the year were related to the road work on Germann Road from
Gilbert Road to Val Vista Drive totaling $11.1 million, which is related to the addition of an interchange on
the San Tan Loop 202 at Lindsay Road. There was also significant work performed during the year on Val
Vista Drive from Riggs Road to Hunt Highway totaling $3.0 million. Capital outlay was offset by
intergovernmental revenues of $14.9 million mainly from Proposition 400 reimbursements from the
Arizona Department of Transportation (ADOT), system development fee collections of $5.1 million and
transfers in of $16.4 million to fund capital projects.
Parks Capital Projects
The Parks Capital Projects Fund accounts for system development fee revenue and the expenditure of
those funds for parks infrastructure. The fund balance increased by $4.6 million during the year, which
was primarily due to the collection of system development fees of $8.6 million offset by capital outlay of
$1.5 million, transfers out of $2.8 million to fund several capital projects, and a net decrease in fair market
value of investments of $1.0 million. The largest project with capital expenditures during the year was
playground replacements at various parks of $764 thousand. The remaining fund balance of $30.7 million
will be used to fund future parks needs related to growth in Gilbert.

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Municipal Facilities Capital Projects
The Municipal Facilities Capital Projects Fund consists of system development fee revenue and Public
Facilities Municipal Property Corporation bond proceeds and the expenditure of those funds to purchase
or construct municipal capital assets. The fund balance increased by $3.6 million during the year resulting
in a deficit in fund balance at fiscal year end of $3.6 million. The deficiency in this fund is primarily due to
long-term loans that cover cash deficits for previous capital expenditures where future system
development fee revenue is expected to eliminate the deficiency. The increase was primarily due to a
transfer from the General Fund to eliminate the fund deficit related to General Government System
Development Fees, which reduced the long-term loan. An additional impact on the fund balance was
capital outlay for various projects totaling $15.7 million. The largest project with capital expenditures
during the year was the Municipal Center 1 Renovation totaling $9.8 million. Total expenditures of $16.0
million was offset by transfers in of $15.9 million to fund various projects.
Debt Service
The fund balance increased by $5.8 million during the year. Property taxes and transfers from other funds
totaled $42.4 million and debt service payments were $36.5 million. See Note 9 for additional
information.
Special Assessments Debt Service
The fund balance of $90 thousand increased from the prior fiscal year by $5 thousand due to regularly
scheduled debt payments and the administrative fee charged for early redemption of a portion of the
special assessment debt. See Note 9 for additional information.
Nonmajor Governmental Funds
All nonmajor governmental funds are combined into one column on the governmental fund statements.
The combined fund balance of these funds increased $2.5 million to a balance at year end of $5.4 million.
Nonmajor funds represent less than 1% of the total governmental fund balance.

Proprietary Funds
Gilbert’s proprietary funds statements are prepared on the same basis (accrual) as the government-wide
financial statements. Gilbert operates, and separately reports, the following proprietary funds:




Water
Wastewater
Environmental Services

Water Fund
The Water Fund is responsible for producing and distributing potable water that exceeds all county, state
and federal drinking water standards. The water system is also sized and pressurized to provide
adequate fire suppression to the entire planning area and operates two surface water treatment facilities
capable of producing 69 million gallons per day (mgd), and 17 ground water wells capable of producing
43.5 mgd. The SanTan Vista Water Treatment Plant is jointly owned with the City of Chandler, with
Gilbert acting as the lead agent. Net position increased by $19.2 million to $529.4 million primarily due to
system development fees and developer contributions of $20.6 million. Operating income was $4.2
million, which is higher than prior year of $3.6 million.

22

Table of Contents
Wastewater Fund
The Wastewater Fund provides wastewater collection and treatment services to residents and businesses
in Gilbert through the operation of two wastewater treatment facilities. The services also include the
storage and distribution of effluent (treated wastewater). The Phase III Expansion for the Greenfield
Water Reclamation Plant (GWRP), a joint venture with the City of Mesa acting as the lead agent, was
completed in fiscal year 2021. The expansion included improvements and upgrades that have increased
the plant’s capacity from 16 mgd to 30 mgd, as well as maintenance and improvements made to the
existing infrastructure of the plant. Net position increased $2.1 million to $385.7 million due primarily to
system development fees and developer contributions of $7.9 million. The operating loss of $3.9 million
was due to an increase in operation and maintenance costs due to increased repair and maintenance
costs to the Neely Wastewater Plant and increases in the operating costs for the Greenfield Wastewater
Plant.
Environmental Services Fund
Gilbert operates the Environmental Services Fund to provide residential and commercial refuse collection,
residential recycling services, street cleaning, storm water infrastructure, and environmental compliance.
Residential services are provided exclusively by Gilbert, while the commercial service competes with the
private sector for customers. Net position decreased by $3.5 million, to $48.3 million. The operating loss
of $3.4 million was due to a decrease in intergovernmental revenue of $556 thousand compared to prior
year, an increase in expenses overall attributed to new software implementations, increased costs for fuel
and equipment, and various operational and maintenance costs.
The following graph compares the fiscal year revenues to expenses for the Water, Wastewater and
Environmental Services Funds.

General Fund Budgetary Highlights
There was a difference of ($84.6) million between the original adopted expenditure budget and the final
amended expenditure budget. The final amended budget projected that expenditures would exceed
revenues by $52.5 million resulting in a $148.9 million reduction to fund balance after other financing
sources and uses. The difference between the original adopted budget and final amended budget was
mainly due to the utilization of $91.1 million in contingency during the year, and $11.4 million more in
transfers out, offset by budgeting $2.5 million more in capital outlay expenditures, and $1.9 million more
in management and policy expenditures.

23

Table of Contents
During the year, actual revenues exceeded the budgeted amount by $70.7 million (33.6%) mainly due to
higher than expected sales taxes collected of $34.4 million and higher than expected intergovernmental
revenue of $26.2 million primarily due to $37.7 million of additional state shared sales tax. Actual
expenditures were less than budgeted by $68.5 million (26.0%) mainly due to lower than expected
expenditures in management and policy ($5.0 million), parks and recreation ($2.9 million), nondepartmental ($23.8 million), capital outlay ($7.3 million), and unused contingency ($28.4 million). These
were mainly the result of a reduction in grants related to CARES funding that were available in the
previous fiscal year but not in the current fiscal year. This resulted in an excess of revenues over
expenditures of $139.1 million more than budgeted. Other financing sources and uses came in $42.8
million lower than expected as a result the timing of redevelopment, municipal facilities, and streets and
traffic capital projects. This also resulted in the actual net change in fund balance being $181.9 million
more than budgeted.

Capital Asset and Debt Administration
Capital Assets. As of June 30, 2022, Gilbert had $1.8 billion in capital assets, net of accumulated
depreciation, which is an increase of $63.7 million (3.7%) over prior year. This was due to increases in
construction-in-progress for streets, redevelopment districts, municipal facilities, water, and wastewater
related projects, as well as increases in non-depreciable water rights. This was offset by the depreciation
expense taken. Major capital improvement projects completed during the year included the following:
Governmental Activities





Val Vista Drive Appleby to Riggs Improvements of $26.6 million
Val Vista Drive Reconstruction of $7.4 million
Higley and Baseline Intersection Improvements of $4.5 million
Advance Detection Safety Improvements of $3.2 million

Business-type Activities





Power Road Water System Loop Installation of $2.5 million
Well 3 Water Mains Replacement of $3.9 million
Chandler Heights Reclaimed Water Line Extension of $1.4 million
Germann and Higley Reclaimed Water Main Installation of $4.5 million

The following table presents capital asset balances, net of accumulated depreciation, for the fiscal years
ended June 30, 2022 and 2021.
Town of Gilbert
Capital Assets
(net of depreciation)
Governmental
Activities
2021
(as restated)

2022
Land

Business-type
Activities
2022
24,107,771

$

2022

2021
(as restated)
$ 155,773,106

$ 140,142,173

$ 132,257,980

23,515,126

$ 164,249,944

-

-

64,690,356

59,427,744

64,690,356

59,427,744

Construction-in-progress

172,562,545

174,869,102

94,065,167

61,038,529

266,627,712

235,907,631

Buildings

188,981,350

202,087,388

-

-

188,981,350

202,087,388

Improvements

17,661,744

19,607,191

-

-

17,661,744

19,607,191

Plant, machinery & equipment

30,557,930

27,068,728

58,010,469

62,988,447

88,568,399

90,057,175

Infrastructure

534,956,542

515,058,396

423,960,857

407,620,443

958,917,399

922,678,839

Nondepreciable w ater rights

$

Total

2021
(as restated)

Depreciable w ater rights

-

-

36,815,008

37,225,437

36,815,008

37,225,437

Total Capital Assets

$ 1,084,862,284

$ 1,070,948,785

$ 701,649,628

$ 651,815,726

$ 1,786,511,912

$ 1,722,764,511

24

Table of Contents
Total governmental capital assets and business-type capital assets increased by $13.9 million and $49.8
million, respectively. The change in governmental capital assets can be attributed to the addition of
construction-in-progress of $45.4 million, infrastructure of $56.6 million, and machinery and equipment of
$8.5 million. These were offset by construction-in-progress deletions of ($47.7 million) and depreciation
taken of ($57.9 million). Most of the increase for the business-type capital assets can be attributed to a
net $33.0 million increase to construction-in-progress and infrastructure additions of $34.7 million offset
by depreciation taken ($27.0 million).
See Note 7 on pages 60-61 for further information regarding capital assets.
Long-term Debt. At June 30, 2022, Gilbert had total bonded debt obligations of $365.1 million related to
governmental activities and $590.4 million in business-type activities. Of the total outstanding, $298.5
million is general obligation (GO) bonds backed by the full faith and credit of Gilbert; $2.8 million is special
assessment bonds secured by a lien against the land of the benefited property owners in Improvement
Districts #19 and #20; all other outstanding debt is secured by pledges of specific revenue sources.
The Arizona Constitution and state statutes limit a municipality’s bonded debt capacity to certain
percentages of its limited property valuation and by the type of project to be constructed with GO bonds.
For projects involving water, wastewater, artificial lighting, parks, open space, recreational facility
improvements, streets, public safety, and fire and emergency facilities, Gilbert can issue GO bonds up to
20% of its limited property valuation. For any other general-purpose improvements, Gilbert may issue
bonds up to 6% of its limited property valuation. Gilbert’s available debt margin at June 30, 2022, was
$228.3 million in the 6% capacity and $442.5 million in the 20% capacity.
See Note 9 on pages 62-66 for additional information on debt.
The following schedule shows Gilbert’s outstanding debt as of June 30, 2022 and 2021.
Town of Gilbert
Outstanding Debt
Governmental
Activities
General Obligation
Special Assessment
Revenue Obligations
Municipal Property
Corporation (Revenue Bonds)

Business-type
Activities

2022

2021

$ 298,465,000
2,840,000
33,450,000

$ 131,830,000
4,000,000
34,220,000

$

30,365,000

44,955,000
$ 215,005,000

590,360,000
$ 590,360,000

Totals $ 365,120,000

2022

Total

2021

-

2022

2021

-

$ 298,465,000
2,840,000
33,450,000

$ 131,830,000
4,000,000
34,220,000

125,305,000
$ 125,305,000

620,725,000
$ 955,480,000

170,260,000
$ 340,310,000

$

Gilbert’s bonds are rated by leading rating agencies that assess the risk of default based on Gilbert’s
financial condition. The following schedule shows Gilbert’s bond ratings as of June 30, 2022.
Town of Gilbert
Long-term Debt Ratings
As of June 30, 2022

General Obligation
Public Facilities Municipal Property Corporation (Revenue Bonds)
Water Resources Municipal Property Corporation (Revenue Bonds)
Revenue Obligations
Improvement Districts (Special Assessment)

25

Moody's Investor
Service

Standard and
Poors' Ratings
Service

Fitch
Ratings

Aaa
Aa1
Not rated
Aa1
Aa1

AAA
AAA
AAA
AAA
AA-

AAA
AAA
AAA
AAA
Not rated

Table of Contents
Economic Factors and Next Year’s Budget
Gilbert and the local economy continued to grow during fiscal year 2022. In fiscal year 2022, Gilbert
issued nearly 1,400 permits for new single-family homes to be built and the Arizona Commerce Authority
estimates over 3,500 net new jobs came to Gilbert the same year. For fiscal year 2023, we will continue
to focus on meeting citizen needs and providing excellent service to residents and businesses as we
grow. We will also remain financially prepared meet economic challenges that may arise as the world
continues to recover from the pandemic.
With a population of nearly 280 thousand residents, Gilbert is Arizona’s fifth largest municipality. In 2022,
Gilbert was recognized as a finalist for the International Data Corporation’s Smart Cities Award and was
also ranked the #1 Best City for Early Retirement (Smart Asset, 2022). Gilbert stands proud as the Best
Place to Live in Arizona (Ranking Arizona, 2022). As the nation continues to rebound from the COVID-19
pandemic, Gilbert was ranked as #3 for Cities Whose Unemployment Rates are Bouncing Back Most
(WalletHub, 2022). From fiscal year 2013 to fiscal year 2021, private investment in Gilbert’s four
employment areas totaled over $1.2 billion. Science, Technology, Engineering, and Mathematics (STEM)
and STEM-related job growth has outpaced total job growth over the last five years; 17.6% for
STEM/STEM related versus 11.4% total job growth (Lightcast, Inc., 2016-2021). Over the last five years,
Gilbert has added 3.9 million square feet of office, industrial/flex, and retail space to its inventory,
representing an increase of 15.4% (Costar, Q2 2017 – Q2 2022).
In fiscal year 2022, Gilbert’s economic development initiatives continued to yield positive results for the
community. The #GilbertTogether Business Recovery program provided businesses with short, mid, and
long term support during the pandemic. Gilbert continued the long term resiliency efforts by providing
access to experts and proven programs that enabled businesses to improve operations, receive technical
assistance, and provided access to scholarships that allowed Gilbert residents to upskill. At the
conclusion of fiscal year 2022, Gilbert businesses had received nearly 1,500 hours of technical
assistance and one on one coaching, and over 130 scholarships had been awarded to Gilbert residents.
Gilbert’s employment areas also saw growth in fiscal year 2022. In the Northwest employment area,
SunCap Property Group broke ground on three new speculative light industrial/flex buildings at the Gilbert
Spectrum development, totaling over 300,000 square feet. In the Central Business District, Gilbert
welcomed Zero Electric Vehicles (ZEVX), a leader in electric powertrain and energy management
solutions for light to medium duty commercial vehicles, as its newest corporate tenant. ZEVX expanded to
Gilbert with the buildout of their new 103,000 square foot, state of the art facility that will create over 300
new jobs. Park Lucero East also completed construction on over 560,000 square feet of new light
industrial/flex space. The Gateway employment area welcomed Li-Cycle, another critical player in the
sustainability industry. Li-Cycle, a cleantech company with technology for recovering critical materials
from end of life lithium-ion batteries, occupies 140,000 square feet and is expected to create over 40 jobs.
In the Heritage District, Gilbert facilitated the expansion of the University of Arizona Master of Science for
Entry to the Profession of Nursing (MEPN). To support the program expansion, Gilbert and the University
of Arizona partnered to build out approximately 17,000 square feet of shell space on the 4th floor of the
University Building and executed a new five year lease with a five year option to renew.
A community of excellence demands exceptional governance. Gilbert undertakes a zero based process
for one third of the organization every year, and always applies priority, program, and performance-based
approaches. Since 2018, over $9 million has been removed due to the zero based efforts. Directors are
tasked with balancing the budget through consensus, rather than presenting requests and waiting to hear
back. Once the directors achieve consensus, the Manager is presented with the recommended budget.
This collaborative approach allows Gilbert to promote transparency, the importance of short and long
term planning, and maintain a strong return on investment for the zero based process while staying
focused on the citizens and businesses that we all serve in different capacities.
Additionally, Gilbert staff and Council align both short term goals and resources toward the long term
realization of Gilbert’s established strategic initiatives: Strong Economy, Prosperous Community and
Exceptional Built Environment. These strategic initiatives guide the formulation of organizational goals
and corresponding budget for the following fiscal year. Council retreats, as well as the budget kickoff each
September, allow staff to initiate the process with clear direction and focus governing the priorities for
service delivery in the following fiscal year.

26

Table of Contents
The budget for fiscal year 2023 reflects an effort to deliver both effective and efficient services to our
community. Even given Gilbert’s growth, the budget is balanced, and applies the non-recurring level of
construction-related revenues toward non-recurring costs. The adopted budget is based off conservative
revenue estimates which provide flexibility in responding to possible economic volatility.

Budget Highlights for Fiscal Year 2023
With carry forwards and contingency adjustments, the maximum budget of $1,670,841,740 was adopted
for fiscal year 2023. Most of the increase from fiscal year 2022 is from increased activity in the Capital
Improvement Program, especially related to the voter-approved transportation bond projects and the
reconstruction of the North Water Treatment Plant. The budget includes a capital projects contingency
budget of $100.0 million to allow Council the flexibility and legal authority to respond to community needs.
This contingency is consistent with practice in prior years.
Tax Rates: The budget reflects a levy of $29.6 million which maintains the $0.99 property tax rate.
Balanced Financial Plan: The fiscal year 2023 budget is balanced based upon identified revenues and
expenditures.
Constitutional Expenditure Limit: The fiscal year 2023 budget reflects expenses that will be under the
constitutional expenditure limitation. Staff regularly monitors conformity with the constitutional expenditure
requirements and will recommend, if necessary, continuing adjustments and modifications necessary to
comply with expenditure limitation requirements.
State Shared Revenues: The fiscal year 2023 budget reflects state shared revenues based upon Census
population adjustments and statutory distribution formulas, taking into account currently projected state
sales and income tax collections (provided by the Arizona League of Cities and Towns), which reflect the
state’s budgeted HURF distributions.
Fund Balance: The Revenue Summary lists the use of carry over funds in an amount of about $981
million. This reflects use of revenues which were received in prior fiscal years in excess of minimum fund
balance. Revenues from the bonds sold in fiscal year 2022 for both transportation and water related
projects are included in this carry over number.
Capital Project Financing – System Development Fees: The fiscal year 2023 budget reflects revenues
projected from the continued collection of SDFs as allowed under current state law.

Financial Contact
This financial report is designed to provide a general overview of Gilbert’s finances and to demonstrate
accountability for the use of public funds. This report is also available on Gilbert’s website at
www.gilbertaz.gov. Questions about any of the information provided in this report, or requests for
additional financial information should be addressed to:
Town of Gilbert
Accounting Manager
50 E. Civic Center Drive
Gilbert, AZ 85296
(480) 503-6000

27

Table of Contents

28

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Net Position
June 30, 2022

Assets
Pooled cash and investments
Restricted cash and investments
Receivables, net:
Taxes
Special assessments
Accrued interest
Restricted accrued interest
Accounts
Due from other governments
Leases
Prepaid items
Deposits
Inventories
Internal balances
Net pension asset
Investment in joint venture
Capital assets:
Non-depreciable
Depreciable, net
Total assets
Deferred outflows of resources
Deferred charge on refundings
Pensions and other postemployment benefits
Total deferred outflows of resources

Primary Government

Component
Unit

Governmental
Activities

Business-type
Activities

Industrial
Development
Authority

$

$

596,526,360
4,141,417

Total

739,465,745
12,482,765

$ 1,335,992,105
16,624,182

$

17,109
-

18,594,845
2,861,827
1,038,409
11,863,657
5,701,401
11,048,684
5,117,100
50,000
1,029,934
(1,318,842)
592,705
1,774,986

428,813
24,233
8,259,153
283,879
900,231
67,750
1,318,842
177,862,814

18,594,845
2,861,827
1,467,222
24,233
20,122,810
5,985,280
11,048,684
6,017,331
50,000
1,097,684
592,705
179,637,800

-

312,704,718
772,157,566
1,743,884,767

182,863,294
518,786,334
1,642,743,853

495,568,012
1,290,943,900
3,386,628,620

17,109

2,206,559
42,789,233
44,995,792

2,002,411
6,019,029
8,021,440

4,208,970
48,808,262
53,017,232

-

Liabilities
Accounts payable
Accrued liabilities
Claims payable
Deposits held for others
Utility deposits
Bond interest payable
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities

17,987,310
12,268,535
7,369,518
1,681,314
724,603
26,810,907

15,913,279
1,370,035
1,917,735
2,544,906
-

33,900,589
13,638,570
7,369,518
1,681,314
1,917,735
3,269,509
26,810,907

-

31,819,942
444,138,135
542,800,264

9,373,115
648,286,431
679,405,501

41,193,057
1,092,424,566
1,222,205,765

-

Deferred inflows of resources
Pensions and other postemployment benefits
Leases
Total deferred inflows of resources

50,465,459
10,904,894
61,370,353

6,630,520
6,630,520

57,095,979
10,904,894
68,000,873

-

885,750,306

541,025,300

1,426,775,606

-

90,247,464
2,076,939
7,752,854
11,842,942
1,514,091

13,500,206
-

103,747,670
2,076,939
7,752,854
11,842,942
1,514,091

-

424,748
1,691,010
183,409,588
$ 1,184,709,942

410,203,766
964,729,272

424,748
1,691,010
593,613,354
$ 2,149,439,214

Net position
Net investment in capital assets
Restricted for:
Capital projects
Court/police programs
Debt service
Highways and streets
Other purposes
Special districts
Transportation
Unrestricted
Total net position

The notes to financial statements are an integral part of this statement.

29

$

$

17,109
17,109

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Activities
For the Year Ended June 30, 2022

Program Revenues

Functions/Programs
Primary government
Governmental activities
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Transportation
Non departmental
Interest and fiscal charges on long-term debt
Total governmental activities

Expenses

$ 32,299,069
3,089,623
4,623,035
11,876,375

Charges for
Services

Operating
Grants and
Contributions

Capital
Grants and
Contributions

$

$

$

14,916
4,033
644,120
5,864,002

5,568,677
35,000
-

67,766
-

67,491,794
48,219,681
63,021,711
32,718,736
3,523,440
8,221,060
275,084,524

3,338,014
4,908,484
63,136
7,036,153
349,705
22,222,563

1,344,351
2,243,820
30,840,386
226,607
49,884
40,308,725

1,812,864
1,847,922
45,202,544
8,966,744
3,240,975
61,138,815

Business-type activities
Water
Wastewater
Environmental services
Total business-type activities
Total primary government

55,761,046
36,907,806
27,860,956
120,529,808
$ 395,614,332

55,269,505
31,695,362
24,186,747
111,151,614
$ 133,374,177

2,075,150
531,786
2,606,936
$ 42,915,661

21,173,077
7,855,035
332,304
29,360,416
$ 90,499,231

Component unit
Industrial Development Authority

$

$

$

$

40

-

-

General revenues
Sales taxes
Property taxes
In-Lieu property taxes
Franchise taxes
Unrestricted state-shared revenue
Grants and contributions not restricted to specific programs
Investment income
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning (as restated, see Note 2)
Net position - ending

The notes to financial statements are an integral part of this statement.
30

-

Table of Contents

Net (Expense) Revenue and Changes in Net Position
Primary Government

Component
Unit

Governmental
Activities

Business-type
Activities

Industrial
Development
Authority

$

$

(26,647,710)
(3,085,590)
(3,943,915)
(6,012,373)

Total

-

$

(26,647,710)
(3,085,590)
(3,943,915)
(6,012,373)

$

-

(60,996,565)
(39,219,455)
13,084,355
(16,489,232)
3,240,975
(3,123,851)
(8,221,060)
(151,414,421)

-

(60,996,565)
(39,219,455)
13,084,355
(16,489,232)
3,240,975
(3,123,851)
(8,221,060)
(151,414,421)

-

(151,414,421)

22,756,686
3,174,377
(3,341,905)
22,589,158
22,589,158

22,756,686
3,174,377
(3,341,905)
22,589,158
(128,825,263)

-

142,901,420
30,355,662
1,086,374
2,660,405
72,666,521
2,125,348
(14,992,902)
238,370
1,079,701
(157,874)
237,963,025
86,548,604
1,098,161,338
$ 1,184,709,942

$

(6,500,296)
240,840
558,561
157,874
(5,543,021)
17,046,137
947,683,135
964,729,272

142,901,420
30,355,662
1,086,374
2,660,405
72,666,521
2,125,348
(21,493,198)
479,210
1,638,262
232,420,004
103,594,741
2,045,844,473
$ 2,149,439,214

$

(40)

$

1
1
(39)
17,148
17,109

The notes to financial statements are an integral part of this statement.
31

Table of Contents

TOWN OF GILBERT, ARIZONA
Balance Sheet
Governmental Funds
June 30, 2022

General

Streets
Special
Revenue

Streets and
Traffic Capital
Projects

Parks Capital
Projects

$ 236,319,136
193,047

$ 12,836,765
-

$ 258,645,046
-

$ 31,113,667
-

18,206,528
462,349
10,492,841
494,018
11,048,684
803,724
5,046,747
6,675,007
$ 289,742,081

22,223
9,588
1,963,462
$ 14,832,038

448,158
$ 259,093,204

53,912
$ 31,167,579

Liabilities
Accounts payable
Accrued liabilities
Deposits held for others
Due to other funds
Interest payable
Advances from other funds
Unearned revenue
Bonds payable
Total liabilities

7,003,369
11,731,475
1,681,314
1,023,362
21,439,520

1,938,153
274,165
2,212,318

4,297,506
4,297,506

457,977
457,977

Deferred inflows of resources
Unavailable revenue - sales tax
Unavailable revenue - special assessments
Unavailable revenue - court fines
Unavailable revenue - grants
Deferred inflows related to leases
Total deferred inflows of resources

95,929
5,315,268
10,904,894
16,316,091

-

-

-

Fund balances (deficits)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)

11,721,754
86,880,524
153,384,192
$ 251,986,470

12,619,720
$ 12,619,720

254,795,698
$ 254,795,698

30,709,602
$ 30,709,602

Total liabilities, deferred inflows of resources
and fund balances (deficits)

$ 289,742,081

$ 14,832,038

$ 259,093,204

$ 31,167,579

Assets
Pooled cash and investments
Restricted cash and investments
Receivables, net
Taxes
Special assessments
Accrued interest
Accounts
Due from other governments
Leases
Due from other funds
Prepaid items
Advances to other funds
Total assets

The notes to financial statements are an integral part of this statement.
32

Table of Contents

Municipal
Facilities
Capital
Projects
$

Debt Service

Special
Assessments
Debt Service

Other
Governmental
Funds

Total
Governmental
Funds

4,103,088
-

$

$

$

29,921,904
-

$ 580,540,196
4,141,417

4,885
4,107,973

240,363
13,269
$ 11,713,839

147,954
7,996
80
3,215,342
70,353
33,363,629

18,594,845
2,861,827
1,012,945
10,502,509
5,672,822
11,048,684
803,724
5,117,100
6,675,007
$ 646,971,076

2,285,183
5,375,007
7,660,190

2,433
724,603
810,000
1,537,036

5,283
5,283

1,190,846
106,529
803,724
25,787,545
27,888,644

17,180,750
12,112,169
1,681,314
803,724
724,603
5,375,007
26,810,907
810,000
65,498,474

-

-

2,855,415
2,855,415

38,615
38,615

95,929
2,855,415
5,315,268
38,615
10,904,894
19,210,121

$

2,823,990
(6,376,207)
(3,552,217)

4,807,404
5,369,399
$ 10,176,803

$

90,035
90,035

$

70,353
5,675,432
(309,415)
5,436,370

11,792,107
311,521,881
92,249,923
146,698,570
$ 562,262,481

$

4,107,973

$ 11,713,839

$

2,950,733

$

33,363,629

$ 646,971,076

$

7,511,837
3,948,370

$

88,753
2,861,827
153
2,950,733

$

33

Table of Contents

34

Table of Contents

TOWN OF GILBERT, ARIZONA
Reconciliation of Balance Sheet
To the Statement of Net Position
June 30, 2022

$

Fund balances of governmental funds

562,262,481

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 governmental funds.
Governmental capital assets
Accumulated depreciation

2,034,020,266
(949,498,470)

1,084,521,796

The investment in joint venture is not a financial resource and, therefore, is not reported
in the funds.

1,774,986

Some receivables are not available to pay for current period expenditures and,
therefore, are reported as unavailable revenue in the governmental funds.

8,305,227

Net pension assets for future benefits are not available for the Town's operations and,
therefore, are not reported in the funds.

592,705

Internal service funds are used by management to charge the costs of certain activities,
such as equipment maintenance, to the individual funds. The assets and liabilities of the
internal service funds are included in the governmental activities in the statement of net
position, but are not included on the governmental funds balance sheet.

5,763,233

Deferred outflows and inflows of resources related to pensions, other postemployment
benefits, and deferred charges on debt refundings are applicable to future reporting
periods and, therefore, are not reported in the funds.
Unamortized deferred outflow on bond refunding
Pension and other postemployment benefits-related items

2,206,559
(7,620,661)

(5,414,102)

Certain liabilities applicable to the Town's governmental activities are not due and
payable in the current period, and accordingly are not reported as fund liabilities in the
governmental funds balance sheet.
Bonds payable
Bonds premium
Compensated absences
Net other postemployment benefits
Net pension

(364,310,000)
(33,546,799)
(19,932,187)
(855,937)
(54,451,461)

(473,096,384)

Net position of governmental activities - statement of net position

The notes to financial statements are an integral part of this statement.
35

$ 1,184,709,942

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022

General
Revenues
Taxes
Sales
Property
Special assessments
Franchise
Licenses and permits
Charges for services
Intergovernmental
Fines and forfeitures
Other entities' participation
System development fees
Gifts and donations
Interest earnings
Net change in fair value of investments
Miscellaneous
Total revenues
Expenditures
Current
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Non departmental
Debt service
Principal
Interest
Bond issuance costs
Fiscal and other charges
Capital outlay
Total expenditures

$ 141,447,364
2,660,405
4,067,520
20,287,790
101,063,251
2,794,013
5,280,019
200,732
1,947,354
(8,791,221)
1,279,099
272,236,326

Streets Special
Revenue

Streets and
Traffic Capital
Projects

Parks Capital
Projects

$

$

$

700
18,943,917
13,944
99,507
(414,718)
101,771
18,745,121

14,946,140
5,086,479
1,068,848
(7,373,494)
13,727,973

8,611,147
240,629
(1,019,410)
7,832,366

29,414,264
3,161,813
3,785,388
8,948,747

-

-

-

61,579,074
42,347,849
6,875,724
24,620,396
8,126,817

15,472,050
-

85,909
-

899,684
-

5,522,893
194,382,965

13,190
15,485,240

661,938
25,828,796
26,576,643

1,503,754
2,403,438

Excess (deficiency) of revenues over expenditures

77,853,361

3,259,881

(12,848,670)

5,428,928

Other financing sources (uses)
Transfers in
Transfers out
Proceeds from the sale of capital assets
General obligation bonds issued
Premium on bonds issued
Total other financing sources (uses)

1,473,787
(55,335,967)
167,305
(53,694,875)

(1,329,080)
94,960
(1,234,120)

16,391,495
(6,000)
188,910,000
12,917,121
218,212,616

2,014,915
(2,847,153)
(832,238)

Net change in fund balances

24,158,486

2,025,761

205,363,946

4,596,690

10,593,959
12,619,720

49,431,752
$ 254,795,698

Fund balances - beginning
Fund balances - ending

227,827,984
$ 251,986,470

The notes to financial statements are an integral part of this statement.

36

$

$

26,112,912
30,709,602

Table of Contents

Municipal
Facilities
Capital
Projects

$

$

5,572,093
19,770
(89,332)
5,502,531

Debt Service

Special
Assessments
Debt Service

Other
Governmental
Funds

Total
Governmental
Funds

$

$

$

1,477,056
2,722,155
249,200
6,512,408
423,047
79,968
34,532
(139,511)
1,743
11,360,598

$ 142,924,420
30,355,662
1,351,412
2,660,405
4,067,520
20,552,388
141,465,716
3,231,004
5,280,019
19,269,719
280,700
3,527,240
(18,133,797)
1,382,613
358,215,021

27,633,507
114,085
(303,147)
27,444,445

1,351,412
14,698
2,515
(2,964)
1,365,661

-

-

-

1,419,298
251,291
-

30,833,562
3,161,813
4,036,679
8,948,747

165,646
173,156
1,333

-

-

710,795
11,615
2,045,950
933,715
49,885

62,455,515
42,359,464
24,479,633
26,626,951
8,178,035

15,666,998
16,007,133

28,335,000
8,118,694
7,950
36,461,644

1,160,000
193,350
7,094
1,360,444

12,057,436
17,479,985

29,495,000
8,312,044
661,938
15,044
60,593,067
310,157,492

(10,504,602)

(9,017,199)

5,217

(6,119,387)

48,057,529

15,863,987
(1,766,801)
14,097,186

14,777,860
14,777,860

-

11,745,479
(3,140,396)
8,605,083

62,267,523
(64,425,397)
262,265
188,910,000
12,917,121
199,931,512

3,592,584

5,760,661

5,217

2,485,696

247,989,041

2,950,674
5,436,370

314,273,440
$ 562,262,481

(7,144,801)
(3,552,217)

$

4,416,142
10,176,803

$

84,818
90,035

$

37

Table of Contents

38

Table of Contents

TOWN OF GILBERT, ARIZONA
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities
For the Year Ended June 30, 2022

Net change in fund balances - total governmental funds

$

247,989,041

Amounts reported for governmental activities in the statement of net position are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of
those assets is allocated over their estimated useful lives as depreciation expense.
Capital outlay
Depreciation expense

60,593,067
(57,870,988)

2,722,079

The net effect of various miscellaneous transactions involving capital assets is to decrease net position.

(504,652)

Issuance of debt, applicable premium and payment to refunded bond escrow agent are reported as a financing
source (use) in the governmental funds and thus contribute to the change in fund balance. In the governmentwide statements, however, issuing debt increases long-term liabilities in the statement of net position and does
not affect the statement of activities. Bond premium is deferred and amortized in the statement of activities.

(201,827,121)

Repayment of bond principal is reported as expenditures in governmental funds and thus has the effect of
reducing fund balance because current financial resources have been used. For the government-wide
statements, however, the principal payments reduce the long-term liabilities in the statement of net position
and do not result in an expense in the statement of activities. Also, governmental funds report the effect of
deferred outflows and resources, premiums, discounts and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of activities.
Principal payments
Amortization expense

29,495,000
767,966

30,262,966

Internal service funds are used by management to charge the costs of certain activities, such as equipment
maintenance, to the individual funds. The adjustments for internal service funds "close" those funds by
charging the additional amounts to participating governmental activities to completely cover the internal service
funds' costs for the year.

(2,118,707)

Capital assets contributed by developers are not shown on the governmental fund statements but are included
in the assets of the Town. On the statement of activities, these donations are shown as capital contributions.

11,562,776

Compensated absence 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.

(1,982,756)

Pension/OPEB contributions are reported as expenditures in the governmental funds when made. However,
they are reported as deferred outflows of resources in the statement of net position because the reported net
pension/OPEB liability is measured a year before the report date. Pension/OPEB expense, which is the
change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources
related to pensions/OPEB, is reported in the statement of activities.
Pension/OPEB contributions
Pension/OPEB expense

13,733,440
(11,752,134)

1,981,306

(1,157,473)
412,940
(23,000)
(152,494)
(616,301)

(1,536,328)

Certain revenues are not reported in the governmental funds because they do not provide current financial
resources due to unavailability but are recognized as revenue in the statement of activities. However, other
revenues in the governmental funds that provide current financial resources are not included in the statement
of activities because they were recognized in a prior period.
Special assessments
Court fines
Sales tax
Grants
Other

$

Change in net position of governmental activities - statement of activities

The notes to financial statements are an integral part of this statement.

39

86,548,604

Table of Contents

TOWN OF GILBERT, ARIZONA
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts

Revenues
Taxes
Sales
Franchise
Licenses and permits
Charges for services
Intergovernmental
Fines and forfeitures
Other entities' participation
Gifts and donations
Interest
Miscellaneous
Total revenues

Original

Final

Non-GAAP
Actual

$ 107,000,000
2,325,000
3,890,000
17,733,970
74,880,000
2,645,000
730,000
63,000
695,000
380,000
210,341,970

$ 107,000,000
2,325,000
3,890,000
17,733,970
74,880,000
2,645,000
730,000
63,000
695,000
380,000
210,341,970

$ 141,447,364
2,660,405
4,067,520
20,287,790
101,063,251
2,794,013
5,280,019
200,732
1,947,354
1,279,099
281,027,547

Variance with
Final Budget
Positive
(Negative)

$

34,447,364
335,405
177,520
2,553,820
26,183,251
149,013
4,550,019
137,732
1,252,354
899,099
70,685,577

Expenditures
Current
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Non departmental
Capital outlay
Contingency
Total expenditures

32,560,580
3,158,010
3,521,940
9,214,790

34,427,802
3,172,010
3,686,940
9,476,790

29,414,264
3,161,813
3,785,388
8,948,747

5,013,538
10,197
(98,448)
528,043

61,225,050
40,897,690
7,121,110
25,950,760
33,908,000
10,346,850
119,500,000
347,404,780

61,574,934
42,674,210
7,151,710
27,561,893
31,926,487
12,801,094
28,388,224
262,842,094

61,579,074
42,347,849
6,875,724
24,620,396
8,126,817
5,522,893
194,382,965

(4,140)
326,361
275,986
2,941,497
23,799,670
7,278,201
28,388,224
68,459,129

Excess (deficiency) of revenues over expenditures

(137,062,810)

(52,500,124)

86,644,582

139,144,706

Other financing sources (uses)
Transfers in
Transfers out
Proceeds from the sale of capital assets
Total other financing sources (uses)

1,724,080
(86,751,300)
(85,027,220)

1,754,080
(98,200,900)
(96,446,820)

1,473,787
(55,335,967)
167,305
(53,694,875)

(280,293)
42,864,933
167,305
42,751,945

$ (222,090,030)

$ (148,946,944)

32,949,707

$ 181,896,651

Net change in fund balances

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

The notes to financial statements are an integral part of this statement.

40

(8,791,221)
$

24,158,486

Table of Contents

TOWN OF GILBERT, ARIZONA
Streets Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Non-GAAP
Actual

Variance with
Final Budget
Positive
(Negative)

$

$

Budgeted Amounts
Original
Revenues
Charges for services
Intergovernmental
Fines and forfeitures
Interest
Miscellaneous
Total revenues

$

Expenditures
Current
Highways and streets
Capital outlay
Contingency
Total expenditures

17,300,000
45,000
17,345,000

Net change in fund balances

$

17,300,000
45,000
17,345,000

700
18,943,917
13,944
99,507
101,771
19,159,839

700
1,643,917
13,944
54,507
101,771
1,814,839

16,265,560
30,000
500,000
16,795,560

16,427,928
42,900
324,732
16,795,560

15,472,050
13,190
15,485,240

955,878
29,710
324,732
1,310,320

549,440

549,440

3,674,599

3,125,159

(1,329,080)
(1,329,080)

(1,329,080)
(1,329,080)

(1,329,080)
94,960
(1,234,120)

94,960
94,960

(779,640)

2,440,479

Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Transfers out
Proceeds from the sale of capital assets
Total other financing sources (uses)

Final

$

(779,640)

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

The notes to financial statements are an integral part of this statement.

41

$

(414,718)
$

2,025,761

$

3,220,119

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Net Position
Proprietary Funds
June 30, 2022

Water
Assets
Current assets:
Pooled cash and investments
Restricted cash and investments
Receivables, net
Accrued interest
Restricted accrued interest
Accounts
Due from other governments
Prepaid items
Deposits
Inventories
Total current assets

Business-type Activities - Enterprise Funds
Environmental
Total Enterprise
Wastewater
Services
Funds

739,465,745
12,482,765

$ 15,986,164
-

39,561
1,338,894
24,223,032

428,813
24,233
8,259,153
283,879
900,231
67,750
761,912,569

25,464
1,361,148
28,579
50,000
1,029,934
18,481,289

101,984,765

-

177,862,814

-

142,564,840
302,368,897
520,811,786
1,154,451,187

39,516,587
184,137,958
325,639,310
429,689,446

781,867
32,279,479
33,061,346
57,284,378

182,863,294
518,786,334
879,512,442
1,641,425,011

7,325
333,163
340,488
18,821,777

Deferred outflows of resources
Deferred charge on refundings
Pensions and other post-employment benefits
Total deferred outflows of resources

2,002,411
2,977,146
4,979,557

1,065,222
1,065,222

1,976,661
1,976,661

2,002,411
6,019,029
8,021,440

551,235
551,235

Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Advances from other funds
Current portion of accrued compensated
Claims payable
Bond interest payable
Bonds payable
Utility deposits
Total current liabilities

7,483,547
681,405
508,375
1,845,781
6,115,000
1,861,416
18,495,524

7,679,880
243,256
204,805
699,125
2,225,000
11,052,066

749,852
445,374
319,935
56,319
1,571,480

15,913,279
1,370,035
1,033,115
2,544,906
8,340,000
1,917,735
31,119,070

806,560
156,366
1,300,000
79,998
7,369,518
9,712,442

597,202,506
975,229
91,775
9,949,824
608,219,334
626,714,858

28,843,427
431,584
33,176
3,559,419
32,867,606
43,919,672

541,319
71,608
6,586,564
7,199,491
8,770,971

626,045,933
1,948,132
196,559
20,095,807
648,286,431
679,405,501

112,797
17,426
1,841,472
1,971,695
11,684,137

3,275,466
3,275,466

1,172,218
1,172,218

2,182,836
2,182,836

6,630,520
6,630,520

606,800
606,800

316,332,683
213,107,737
$ 529,440,420

191,837,750
13,500,206
180,324,822
$ 385,662,778

32,854,867
15,452,365
48,307,232

541,025,300
13,500,206
408,884,924
963,410,430

246,049
6,836,026
7,082,075

Noncurrent assets:
Investment in joint venture
Capital assets
Non-depreciable
Depreciable, net
Total noncurrent assets
Total assets

Noncurrent liabilities:
Utility revenue bonds payable
Accrued compensated absences
Other post-employment benefits
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources
Pensions and other post-employment benefits
Total deferred inflows of resources
Net position
Net investment in capital assets
Restricted for capital projects
Unrestricted
Total net position

$ 617,466,641
9,558,640

$ 99,154,527
2,924,125

245,315
880
5,388,200
180,610
731,365
67,750
633,639,401

143,937
23,353
1,532,059
103,269
168,866
104,050,136

75,878,049

$

$

22,844,577
-

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities

The notes to financial statements are an integral part of this statement.

42

$

Governmental
Activities
Internal
Service Funds

$

1,318,842
964,729,272

$

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2022

Water
Operating revenues
Charges for services
Other
Total operating revenues

Business-type Activities - Enterprise Funds
Environmental
Total Enterprise
Wastewater
Services
Funds
$ 31,695,362
162,569
31,857,931

$ 24,186,747
120,164
24,306,911

Operating expenses
General and administrative
Personnel services
Operation and maintenance
Claims incurred
Depreciation
Allocation of indirect expenses
Total operating expenses

2,142,349
10,739,356
17,761,412
18,029,726
2,706,890
51,379,733

1,210,593
5,318,712
13,816,207
13,917,226
1,463,710
35,726,448

1,480,101
9,105,139
10,358,416
4,899,380
1,859,130
27,702,166

4,833,043
25,163,207
41,936,035
36,846,332
6,029,730
114,808,347

3,121,739
2,391,146
6,736,197
29,416,968
38,052
41,704,102

Operating income (loss)

4,165,600

(3,868,517)

(3,395,255)

(3,098,172)

(4,455,613)

Nonoperating revenues (expenses)
Interest expense
Intergovernmental
Interest earnings
Net change in fair value of investments
Gain (loss) on sale of capital assets
Bond issuance costs
Total nonoperating revenues (expenses)

(2,725,645)
2,616,085
1,323,133
(4,754,641)
68,190
(1,222,643)
(4,695,521)

(1,054,923)
531,786
832,504
(3,307,773)
42,070
(2,956,336)

182,935
(776,454)
130,580
(462,939)

(3,780,568)
3,147,871
2,338,572
(8,838,868)
240,840
(1,222,643)
(8,114,796)

106,271
(492,616)
5,000
(381,345)

(529,921)

(6,824,853)

(3,858,194)

(11,212,968)

(4,836,958)

Capital contributions
Transfers in
Transfers out

20,632,142
224,884
(1,104,632)

7,855,035
1,024,632
-

332,304
12,990
-

28,819,481
1,262,506
(1,104,632)

2,000,000
-

Change in net position

19,222,473

2,054,814

(3,512,900)

17,764,387

(2,836,958)

Total net position - beginning
(as restated, see Note 2)
Total net position - ending

510,217,947

383,607,964

51,820,132

$ 529,440,420

$ 385,662,778

$ 48,307,232

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Changes in net position of business-type activities

The notes to financial statements are an integral part of this statement.

43

111,151,614
558,561
111,710,175

Internal Service
Funds

$ 55,269,505
275,828
55,545,333

Income (loss) before contributions and transfers

$

Governmental
Activities

$

33,711,572
3,536,917
37,248,489

9,919,033
$

$

(718,250)
17,046,137

7,082,075

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022

Water
Cash flows from operating activities
Cash receipts from customers
Other operating cash receipts
Cash receipts from other funds for services
Cash receipts from deposits
Cash payments to suppliers for goods and services
Cash payments to employees for services
Cash payments to other funds for services
Net cash provided (used) by operating activities

Business-type Activities - Enterprise Funds
Environmental
Total Enterprise
Wastewater
Services
Funds
$ 31,474,313
162,569
(13,243,109)
(5,008,955)
(1,463,710)
11,921,108

Cash flows from noncapital financing activities
Advances from other funds
Transfers from other funds
Transfers to other funds
Proceeds from intergovernmental agreements
Net cash provided (used) by noncapital financing activities

224,884
(1,104,632)
2,623,327
1,743,579

1,024,632
428,517
1,453,149

12,990
12,990

1,262,506
(1,104,632)
3,051,844
3,209,718

1,300,000
2,000,000
3,300,000

Cash flows from capital and related financing activities
Bond issuance costs
Acquisition and construction of capital assets
Proceeds from revenue bonds
Proceeds from development fees
Cash paid for interest and fiscal charges
Principal payments on bonds
Proceeds from intergovernmental agreements
Proceeds from sale of capital assets
Net cash provided (used) by capital and related financing

(1,222,643)
(37,739,228)
501,222,643
9,634,948
(3,838,938)
(5,835,000)
68,190
462,289,972

(17,499,936)
3,022,095
(1,452,625)
(2,115,000)
42,070
(18,003,396)

(2,642,172)
555,888
130,580
(1,955,704)

(1,222,643)
(57,881,336)
501,222,643
12,657,043
(5,291,563)
(7,950,000)
555,888
240,840
442,330,872

(181,816)
5,000
(176,816)

Cash flows from investing activities
Investment income
Net cash provided (used) by investing activities

(3,376,153)
(3,376,153)

(2,415,265)
(2,415,265)

(581,245)
(581,245)

(6,372,663)
(6,372,663)

(380,814)
(380,814)

481,000,705
146,024,576
$ 627,025,281

(7,044,404)
109,123,056
$ 102,078,652

$

(1,138,002)
23,982,579
22,844,577

$

472,818,299
279,130,211
751,948,510

$

1,595,552
14,390,612
15,986,164

$

$

$

(3,395,255)

$

(3,098,172)

$

(4,455,613)

Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Operating Income
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depreciation
Changes in assets, deferred outflows of resources, liabilities, and
deferred inflows of resources:
Accounts receivable
Due from other governments
Prepaid items
Inventories
Deferred outflows of resources
Accounts payable
Claims payable
Deposits
Accrued expenses
Other post-employment benefits
Net pension liability
Deferred inflows of resources
Net cash provided (used) by operating activities

4,165,600

(3,868,517)

23,816,821
121,964
24,044
(12,037,257)
(8,680,485)
(1,859,130)
1,385,957

$

108,613,095
560,361
383,062
(45,814,118)
(24,062,298)
(6,029,730)
33,650,372

Internal Service
Funds

$ 53,321,961
275,828
359,018
(20,533,752)
(10,372,858)
(2,706,890)
20,343,307

Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year

$

Governmental
Activities

$

429,641
3,536,917
33,179,072
(35,831,308)
(2,461,140)
(1,146,818)

18,029,726

13,917,226

4,899,380

36,846,332

38,052

(1,947,544)
(731,365)
(13,291)
(437,907)
114,665
359,018
137,119
8,077
(2,475,268)
3,134,477
$ 20,343,307

(221,049)
(168,866)
(196,889)
1,952,557
64,753
2,697
(681,680)
1,120,876
$ 11,921,108

(369,926)
1,800
(318,591)
(198,740)
24,044
147,920
7,670
(1,487,477)
2,075,132
1,385,957

(2,538,519)
1,800
(900,231)
(13,291)
(953,387)
1,868,482
383,062
349,792
18,444
(4,644,425)
6,330,485
33,650,372

(99,101)
(3,758)
(276,079)
(52,351)
418,157
3,301,518
2,635
1,417
(601,527)
579,832
(1,146,818)

The notes to financial statements are an integral part of this statement.

44

$

$

$

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
The Town of Gilbert, Arizona (Gilbert) was incorporated on July 6, 1920, under the provisions of Article 13,
Section 1 of the Constitution of the State of Arizona. Gilbert operates as a general law community, under the
provisions of Title 9, Chapter 2, Article 3 (Common Council provision). Gilbert operates under the CouncilManager form of government, as empowered in Chapter 2, Article 2-51 of the Code of the Town of Gilbert,
Arizona. There are seven members of the Council, elected to staggered four-year terms. The voters select the
Mayor and the Council membership annually elects the Vice Mayor.
Note 1 – Summary of Significant Accounting Policies
Gilbert’s accounting policies conform to accounting principles generally accepted in the United States of
America (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB)
is the accepted standard-setting body for establishing governmental accounting and financial reporting
principles.
For the year ended June 30, 2022, Gilbert implemented the provisions of GASB Statement No. 87, Leases, as
amended, which establishes a single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset. As a result, Gilbert’s financial statements have
been modified to reflect the recognition of certain lease assets for leases that were previously classified as
operating leases and recognized as inflows of resources based on the contract payment provisions. Gilbert’s
analysis of contracts and agreements in effect at the beginning of the year resulted in no changes to beginning
balances reported in the financial statements due to the implementation of this standard.
For the year ended June 30, 2022, Gilbert implemented the provisions of GASB Statement No. 98, The Annual
Comprehensive Financial Report, which modified the existing title of the report from comprehensive annual
financial report to annual comprehensive financial report and established the acronym ACFR.
A. Reporting Entity
Gilbert’s operations include public safety (police, fire, ambulance transport, and animal control), parks and
recreation (parks, recreation, library, culture and arts, and social services), highways and streets (street and
right-of-way maintenance, traffic control, and transportation), development services (planning, code
enforcement, and engineering), and general administration in support of operations. Gilbert also operates three
enterprise funds to provide water, wastewater, and environmental services, and two internal service funds that
provide equipment and fleet maintenance and employee self-insurance for medical, dental, and workers’
compensation claims.
The accompanying financial statements present the activities of Gilbert (the primary government) and its
component units. Component units are legally separate entities for which Gilbert is financially accountable.
Blended component units, although legally separate entities, are in substance part of Gilbert’s operations.
Therefore, data from these units is combined with data of the primary government. Discretely presented
component units, on the other hand, are reported in a separate column in the combined financial statements to
emphasize they are legally separate from the Town of Gilbert. Each blended and discretely presented
component unit discussed below has a June 30 year-end.

45

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Blended Component Units – The Water Resources Municipal Property Corporation (Water MPC) is a legally
separate, non-profit corporation. The Water MPC is an integral part of the Town of Gilbert and exists solely for
the purpose of financing the construction or acquisition of water and wastewater capital improvement projects.
The Public Facilities Municipal Property Corporation (Public Facilities MPC) is a legally separate, non-profit
corporation which exists solely for the purpose of financing construction of municipal facilities. Each is
considered a blended component unit because the Council appoints the five-member board of directors of each
MPC, the Council must approve any amendments to the articles of incorporation of each MPC, the Council
must approve any debt issues of each MPC, and each MPC provides services solely to the Town of Gilbert. At
June 30, 2022, the Water MPC bonded debt is reported within the Water and Wastewater Funds and the Public
Facilities MPC bonded debt is reported within the Debt Service Fund (current portion only) and within the
governmental activities in the government-wide statement of net position.
The SPARK App League (SPARK) is a legally separate, non-profit organization which exists solely for the
purpose of driving invention and innovation in computer programming for Gilbert junior high and high school
students. SPARK was created in 2012 and is the first mobile development contest, hosted in partnership with
Arizona State University’s Ira A. Fulton Schools of Engineering, in collaboration with the Smithsonian’s
Lemelson Center for the Study of Invention and Innovation, and sponsored by Waymo. The contest focuses on
the thinking behind programming by helping teachers and students create a working video game while
collaborating with teams. Students compete against each other in a two-day Game Jam. At June 30, 2022, the
SPARK activity is reported within the Other Special Revenue funds in the Nonmajor Fund Financial Statements
and within the governmental activities in the government-wide statement of net position.
Discretely Presented Component Unit – The Industrial Development Authority (IDA) issues industrial
revenue bonds to provide financial assistance to private sector entities for the acquisition and construction of
eligible industrial and commercial facilities deemed to be in the public interest. The IDA is considered a
component unit because the Council appoints the board of directors of the IDA, the Council must approve any
amendments to the articles of incorporation of the IDA, and the Council must approve any debt issues of the
IDA. The IDA is discretely presented in these combined financial statements because the IDA does not provide
services solely to Gilbert. Separate financial statements for the IDA are prepared and presented to the IDA
Board annually and can be found on Gilbert’s website.
B. Jointly Governed Organizations
Phoenix-Mesa Gateway Airport Authority (PMGAA) is a non-profit corporation established and funded by the
Towns of Gilbert and Queen Creek, the Cities of Mesa, Phoenix, and Apache Junction, and the Gila River
Indian Community. The purpose of the entity is the development of Phoenix-Mesa Gateway Airport. The
airport has three runways, a passenger terminal and is positioned to be a reliever airport to Phoenix’s Sky
Harbor International Airport. The Board of Directors consists of the mayors of the respective communities and
the governor of the Gila River Indian Community. Gilbert contributed $350,000 in fiscal year 2022 to the
PMGAA operating and capital budget.
Regional Public Transportation Authority (RPTA) is a voluntary association of local governments, including
Maricopa County, Chandler, Mesa, Tempe, Scottsdale, Glendale, Phoenix, and Gilbert. Its purpose is to create
a regional public transportation plan for Maricopa County. The Board of Directors consists of the mayors of
those municipalities and a member of the County Board of Supervisors.

46

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
C. Government-wide and Fund Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities) report on
Gilbert and its component units as a whole. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for services.
The government-wide Statement of Net Position reports all financial and capital resources of the government.
It is displayed in a format of assets and deferred outflows of resources, less liabilities and deferred inflows of
resources equals net position, with the assets and liabilities shown in order of their relative liquidity. Net
position is required to be displayed in three components: 1) net investment in capital assets, 2) restricted and 3)
unrestricted. Net investment in capital assets is capital assets net of accumulated depreciation, reduced by
outstanding balances of any bonds, mortgages, notes, capital related accounts payable, or other borrowings
that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position
has constraints placed on its use by either: 1) externally imposed by creditors (such as through debt
covenants), grantors, contributors, or laws or regulations of other governments, or 2) imposed by law through
constitutional provisions or enabling legislation. All net position not otherwise classified as restricted, is shown
as unrestricted.
The government-wide Statement of Activities demonstrates the degree to which the direct expenses of the
various functions or departments are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or department. Interest and fiscal charges on long-term debt are not
allocated to the various functions. Program revenues include charges for services, fines and forfeitures,
licenses and permit fees, special assessment fees, system development fees, intergovernmental grants and
other entities participation. Taxes, investment earnings, and other revenues not identifiable with a particular
function or department are included as general revenues. The general revenues support the net costs of the
functions and departments not covered by program revenues.
For the most part, the effect of internal activity has been removed from the government-wide financial
statements. Net internal activity and balances between governmental activities and business-type activities
are shown in the government-wide financial statements. However, certain charges between the enterprise
funds’ utility systems and the various functional activities are not eliminated in the government-wide statements,
as this would distort the direct costs and program revenues reported for the various functions concerned.
Separate financial statements are provided for the governmental funds and proprietary funds.
The focus of the fund financial statements is on major funds. Major individual governmental funds and
proprietary funds are reported as separate columns in the fund financial statements. Other nonmajor
governmental funds, as well as the internal service funds, are summarized into a single column on the fund
financial statements and are detailed in the combining statements included as supplementary information.
The internal service funds, which provide services to the other funds of the government, are presented in a
single combined column in the proprietary fund financial statements. Because the principal users of the internal
service funds are the governmental activities, the assets and liabilities of the internal service funds are
consolidated into the governmental activities column of the government-wide Statement of Net Position. The
costs of the internal service fund services are spread to the appropriate function or department on the
government-wide Statement of Activities. The revenues and expenses within the internal service funds are
eliminated from the government-wide financial statements to avoid any doubling up effect from these revenues
and expenses.

47

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
D. Measurement Focus and Basis of Accounting
The government-wide and proprietary fund 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 revenue in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been met.
Governmental funds in the fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized when they
become both measurable and available. Gilbert considers all revenues reported in the governmental funds to
be available if the revenues are collected within 60 days after year-end. Gilbert’s major revenue sources that
are susceptible to accrual are property taxes, sales taxes, franchise taxes, licenses and permits,
intergovernmental revenue and investment earnings associated with the current fiscal period. Charges for
services, fines and forfeitures, and miscellaneous revenues are recorded as revenue when received as cash
because they are generally not measurable until received. Expenditures are recorded when the related fund
liability is incurred, except for principal and interest on long-term debt, claims and judgements, and
compensated absences, which are recognized as expenditures to the extent they are due and payable.
General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of general
long-term debt and acquisitions under lease contracts are reported as other financing sources.
Since the governmental fund financial statements are presented on a different measurement focus and basis of
accounting than the government-wide statements’ governmental activities column, a reconciliation is presented
on the page following each fund statement. These reconciliations briefly explain the adjustments necessary to
transform the fund financial statements into the governmental activities column of the government-wide
presentation.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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 revenue of Gilbert’s enterprise funds
are user fees and charges to customers for water, wastewater, and environmental services. Operating
expenses for these funds include the cost of supplies and repair and maintenance, administrative and payroll
expenses, and depreciation. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses. The principal operating revenue of Gilbert’s internal service funds are
charges to user departments for services provided.
E. Fund Accounting
Gilbert uses funds to report its financial position and the results of its operations. Fund accounting segregates
funds according to their intended purpose and is designed to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain governmental functions or activities. A fund is a
separate accounting entity with a self-balancing set of accounts, which includes assets, liabilities, fund equity,
revenues and expenditures/expenses.

48

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Gilbert uses the following fund categories, further divided by fund type:
Governmental Funds
Governmental funds are those through which most of the governmental functions are financed. The
measurement focus is based upon determination of changes in financial position rather than upon net income
determination.
Gilbert reports the following major governmental funds:
General – The General Fund is the primary operating fund and is used to account for all financial resources
except those required to be accounted for in another fund. The General Fund will always be considered a
major fund in the basic financial statements.
Streets Special Revenue – The Streets Special Revenue Fund accounts for Gilbert’s portion of the
Arizona Highway User Revenue Tax. The revenue is used exclusively for the maintenance and
improvement of highways and streets.
Streets and Traffic Capital Projects – The Streets and Traffic Capital Projects Fund accounts for the
receipt of proceeds restricted or assigned for expenditure on street and traffic capital improvements.
Proceeds recorded in this fund include general obligation bonds for street projects, roads and traffic system
development fees collected from building permits, and state funds in accordance with the Maricopa
Association of Governments Regional Transportation Plan approved by voters as Proposition 400.
Parks Capital Projects – The Parks Capital Projects Fund accounts for the receipt of parks system
development fees collected from building permits paid and the expenditure of those funds for parks capital
improvements.
Municipal Facilities Capital Projects – The Municipal Facilities Capital Projects Fund accounts for the
receipt of proceeds restricted for expenditure on municipal facilities capital improvements. Proceeds
recorded in this fund include general obligation bonds for municipal projects, police and fire SDFs, and
previously collected general government SDFs from building permits.
Debt Service – The Debt Service Fund accounts for the principal and interest requirements of general
obligation, public facilities municipal property corporation revenue bonds, and revenue obligations not
recorded in proprietary funds. Financing is provided from the levy of secondary property taxes and
revenue-supported transfers.
Special Assessments Debt Service – The Special Assessments Debt Service Fund accounts for the
principal and interest requirements of special assessment bonds not recorded in proprietary funds.
Financing is provided by special assessment levies against benefited property owners.
Proprietary Funds
Proprietary funds are used to account for Gilbert's ongoing activities which are similar to those found in the
private sector, where cost-recovery and the determination of net income is useful or necessary for sound fiscal
management. The measurement focus is based upon determination of net income, changes in net position,
financial position and cash flows.
Gilbert reports the following major proprietary funds:
Water – The Water Fund accounts for the revenues and expenses from the operation and maintenance
of the domestic water system.

49

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Wastewater – The Wastewater Fund accounts for the revenues and expenses from the operation of the
sanitary wastewater collection and treatment and reclaimed water distribution system.
Environmental Services – The Environmental Services Fund accounts for the revenues and expenses
of operating the solid waste collection system and environmental compliance.
Additionally, Gilbert reports the following fund type:
Internal Service – The Internal Service Funds account for operations that provide services to other
departments on a cost-reimbursement basis. These services include maintenance of Gilbert’s motorized
equipment and self-insurance for employee benefit programs.
F. Budgetary Data
In December of each year, the Office of Management & Budget (OMB) prepares a revenue estimate based
upon local and state-shared revenue forecasts, historic trends, economic indicators, anticipated growth, and
year-to-date revenue performance to develop guidelines for departments to follow in prioritizing budget
requests.
Simultaneously, departments develop operating budget requests and submit them to the OMB. Departments
work with the Capital Improvement Program (CIP) Division to finalize project estimates for the CIP and submit
them to the OMB for funding. Estimates for debt service, maintenance improvement districts, and internal
service funds are prepared by respective departments and submitted to the OMB for review.
In April, Council is presented with a working budget request for preliminary review and discussion and approves
a schedule of hearings and dates for adoption of the budget. A public hearing is held in May for discussion and
adoption of the preliminary budget. The preliminary budget sets the maximum legal expenditure limit for the
upcoming year. A second public hearing is held in June for discussion and adoption of the final budget. The
Council typically adopts the final tax levy in June and reports the levy amounts to Maricopa County for
collection not later than the third Monday in August.
On June 3, 1980, Arizona voters approved Arizona Constitution, Article IX, §20, prescribing an expenditure
limitation for all local governments. The expenditure limitation’s purpose is to control expenditures of local
revenues and limit future increases in spending to adjustments for inflation and population growth. Certain
types of expenditures are excluded from the limitation. Article 9, Sections 20 and 21 of the Arizona Constitution
require the Economic Estimates Commission to determine each year the expenditure limitation for the following
fiscal year for each local government. The limitation is calculated based upon the amount of fiscal year 1979-80
actual payments of local revenues, referred to as the “base limit”. Each year, the base limits for local
jurisdictions are adjusted for population and inflation to reach the current expenditure limitations. Gilbert’s fiscal
year 2022 Expenditure Limitation was $461,713,091.
Local governments may carry forward to future years’ revenues, which are not subject to the expenditure
limitation and were not expended in the year of receipt.
The Council sets policy and adopts the annual budget at the fund level as a total amount of expenditures.
Financial control is set by Council at the fund level, with budgetary control for operating performance
administered at the departmental level. Budget adjustments for special revenue funds, excluding the Streets
Special Revenue Fund, will be administered by the OMB and will not exceed the available revenues. Grants
and restricted appropriations are administered by departments. Directors may authorize transfers within nonpersonnel budget lines at the same fund, department, and project level. Council action is required to approve
adjustments between funds, projects, or contingency transactions over $50,000. All annual appropriations
lapse at year-end and are considered for inclusion in the subsequent year’s budget on a case-by-case basis.

50

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Gilbert prepares its budget on a basis generally consistent with GAAP, with certain exceptions such as longterm liability activity, capital outlay activity, depreciation expense, fair market value adjustments and developer
contributions. Budgetary comparison statements for the General Fund and major special revenue funds are
presented in the basic financial statements. These statements display original budget, amended budget, and
actual results. Budgetary comparison schedules are also included as supplementary schedules for the other
governmental funds.
G. Pooled Cash and Investments
Gilbert maintains pooled cash and investment accounts for funds that are not legally required to be maintained
separately. Each fund's equity in pooled cash and investments represents that fund's position in the
consolidated accounts and determines that fund's allocation of interest earned in the pool. The Arizona
Revised Statutes require a pooled collateral program for public deposits and regulate the investment of surplus
cash. Gilbert limits its investments to the Local Government Investment Pool (managed by the Arizona State
Treasurer), U.S. government securities, certificates of deposit, bonds, repurchase agreements, corporate
notes, asset-backed securities, commercial paper, and money market accounts. Investments are stated at fair
market value.
H. Inventories and Prepaid Items
Inventories are recorded as assets when purchased and expensed when consumed. These inventories are
valued at cost using the weighted average method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements. Prepaid items are recorded as expenses when
consumed in the government-wide financial statements and fund financial statements.
I. Capital Assets
Capital assets, including public domain infrastructure (e.g., roads, bridges, sidewalks and similar assets), are
defined as assets with an initial, individual cost of more than $10,000 and an estimated useful life greater than
one year. All infrastructure, including infrastructure acquired prior to June 30, 1980, is reported. Capital assets
are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets (including
streets, water and wastewater lines installed by developers) are recorded at acquisition value. Gain or loss is
recognized when assets are retired from service or otherwise disposed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend its life
are not capitalized. Major improvements are capitalized and depreciated/amortized over the remaining useful
lives of the related capital assets. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Capital assets are depreciated using the straight-line method based on the following
estimated useful lives (land, certain water rights, and construction-in-progress are not depreciated):
Buildings
Improvements
Machinery and equipment
Infrastructure
Water Rights

51

10 to 50 years
15 to 80 years
3 to 15 years
3 to 80 years
80 to 100 years

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
J. Deferred Outflows/Inflows of Resources
On the government-wide and proprietary funds Statement of Net Position, deferred outflows of resources are
reported and represent a consumption of net assets that applies to a future period and so will not be recognized
as an outflow of resources (expenditure/expense) until then. Gilbert has two items that qualify for reporting in
this category. A deferred charge on refunding results from the difference in 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. A deferred charge on pension and other postemployment-related items results from the
difference between expected and actual experience and also changes in proportion and differences between
Gilbert contributions and proportionate share of contributions. These amounts are deferred and will be
recognized as an expenditure/expense in future periods.
On the government-wide and proprietary funds Statement of Net Position, deferred inflows of resources are
reported and represent an acquisition of net assets that applies to a future period and so will not be recognized
as an inflow of resources (revenue) until then. Gilbert has two items that qualify for reporting in this category.
A deferred inflow of pension and other postemployment-related items is reported for the net difference between
projected and actual investment earnings on pension and other postemployment plan investments. These
amounts are amortized as an expenditure/expense in future periods. A deferred inflow for leases is reported
for the fair value of lease receivables plus any payments received at or prior to the commencement of the lease
term that relate to future periods. The amounts are deferred and will be recognized as revenue in future
periods.
On the governmental funds Balance Sheet, deferred inflows of resources are reported and represent an
acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources
(revenue) until that time. The governmental funds report unavailable revenues from several sources: special
assessments, court fines, sales tax, and grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amount becomes available.
K. Compensated Absences
Compensated absences payable consists of vacation leave and a calculated amount of sick leave employees
earned based on services already rendered.
Vacation is based on a graduated scale of years of employment and is credited to each employee as it accrues.
Vacation hours vary according to years of employment and job class, and are either taken as time off from work
or paid to employees upon separation or retirement. Sick leave accumulated in excess of 520 hours (728
hours for fire personnel) is convertible annually to a partial cash benefit. Sick leave is convertible to a cash
benefit upon retirement or death of the employee (at 100%) or upon resignation (at 50%) when the employee
has ten or more years of service (calculated at the current hourly rate of pay).
For the governmental funds, an expenditure for compensated absences is reported only if they have matured,
for example, as a result of employee resignations and retirements. For the government-wide financial
statements, as well as the proprietary fund financial statements, all of the outstanding compensated absences
are recorded as a liability.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
L. Leases
As lessor, Gilbert recognizes lease receivables for building space, cell tower, license, and right-of-way use
agreements as the primary types of lessor activities. If there is no stated value in the lease contract (or if the
stated rate is not the rate Gilbert charges the lessee) and the implicit rate cannot be determined, Gilbert uses
its own estimated incremental borrowing rate based on the discount rate for the State of Arizona as the
discount rate to measure the lease receivables. Gilbert uses three different estimated incremental borrowing
rates depending upon the length of the lease. See table below for the details.

Lease Term

Short-Term
1-4 year

Mid-Term
5-8 year

Long-Term
9+ year

Lease Rate

0.7278%

1.1754%

1.5138%

Gilbert did not have any lease liabilities as of June 30, 2022.
M. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported
net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as another
financing source. 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 withheld from the
actual debt proceeds received, are reported as debt service expenditures.
The debt service funds are specifically established to account for and service the long-term obligations for the
governmental funds and special assessment debt. Each enterprise fund individually accounts for and services
the applicable bonds that benefit these funds. Long-term obligations are recognized as a liability of a
governmental fund when due, or when resources have been accumulated for payment early in the following
year. For other long-term obligations, only that portion expected to be financed from expendable available
financial resources is reported as a fund liability of a governmental fund.
N. Postemployment Benefits
For purposes of measuring the net pension and other postemployment benefits (OPEB) assets and liabilities,
deferred outflows of resources and deferred inflows of resources related to pensions and OPEB, and pension
and OPEB expense, information about the 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 plans. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
O. Restricted Assets
Certain bond proceeds, as well as certain resources set aside for their repayment, are classified as restricted
on the Balance Sheet, or Statement of Net Position, because they are maintained separately, and their use is
limited by applicable debt covenants.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
P. Fund Balance Classifications
Fund balance classifications comprise a hierarchy based primarily on the extent to which Gilbert is bound to
observe constraints imposed upon the use of the resources reported in the governmental funds. Nonspendable
and Restricted fund balances represent the restricted classifications and Committed, Assigned, and
Unassigned represent the unrestricted classifications.
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in
spendable form such as inventory or (b) legally or contractually required to be maintained intact. Restricted
fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed
externally by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law
through constitutional provisions or enabling legislation. Committed fund balance includes amounts that can
only be used for specific purposes pursuant to constraints imposed internally by formal action of the Council.
Formal action by Council through resolution is required to establish, modify or rescind committed fund balance.
Assigned fund balance includes amounts that are limited to specific purposes by management. Per the
Policies of Responsible Financial Management, Council has authorized the Finance & Management Services
Director to assign fund balance amounts to a specific purpose. Unassigned fund balance represents the
residual net resources in excess of the other classifications. The General Fund is the only fund that can report
a positive unassigned fund balance and any other governmental fund can report a negative unassigned fund
balance.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available, as a general rule, restricted resources are considered spent before unrestricted. Within unrestricted,
committed amounts would be reduced first, followed by assigned amounts (if available) and then unassigned
amounts.
Q. Statement of Cash Flows
A statement of cash flows classifies cash receipts and payments according to whether they stem from
operating, noncapital financing, capital and related financing, or investing activities. For purposes of the
statement of cash flows, all highly liquid investments (including restricted assets) with an original maturity of
three months or less when purchased are considered cash equivalents.
R. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make a number of
estimates and assumptions that affect the amounts reported as assets, liabilities, and deferred outflows/inflows
of resources and disclosure of contingent assets and liabilities at the date of the Statement of Net
Position/Balance Sheet and the reported amounts of revenues and expenditures/expenses during the reporting
period. Actual results could differ from those estimates.
S. Transactions Between Funds
Transactions that would be recorded as revenues and expenditures/expenses if they involved entities external
to the governmental unit are recorded as revenues and expenditures/expenses in the respective funds.
Transactions constituting a reimbursement of a fund for expenditures/expenses originally recorded in that fund,
but properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund, and as
reductions of the expenditures/expenses in the fund which is reimbursed, excluding indirect administrative
costs which are recorded as revenues and expenditures/expenses in the related funds. Indirect administrative
expenses represent overhead costs which have been allocated to the enterprise funds based upon a formula
approved with the budget. All other interfund transactions are reported as transfers.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “due to/from other funds” (i.e., short-term interfund loans due to timing
differences) or “advances to/from other funds” (i.e., loans adopted by Council for a particular purpose). Any
residual balances outstanding between the governmental activities and business-type activities are reported in
the government-wide financial statements as “internal balances”.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in the applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources. See Note 6 for further discussion of the interfund
receivables/payables at June 30.
T. Property Tax
Gilbert's property tax levy is adopted by the Council each year and the County levies the taxes on or before the
third Monday of August, based on the previous year's limited property value as of the lien date (January 1).
Maricopa County, at no charge, levies, collects, and remits all property taxes. Levies are due and payable in
two installments, on October 1 and March 1, and become delinquent on November 1 and May 1, respectively.
Public auctions of properties that have delinquent real estate taxes are held in February following the May 1
delinquency of the second installment. The purchaser is given a certificate of purchase, issued by the County
Treasurer. Five years from the date of sale, the holder of a certificate of purchase, which has not been
redeemed, may demand of the County Treasurer, a County Treasurer's Deed.
Gilbert does not levy property taxes for general operations (primary tax). Secondary property taxes are levied
solely for the purpose of retiring the principal, interest, and servicing fees on voter approved general obligation
bonded indebtedness. State law requires municipalities to adopt a property tax levy based on the amount of
scheduled and projected debt service for the year plus a reasonable amount for delinquencies and certain
costs. For fiscal year 2022, Gilbert’s property tax rate is $0.99 per $100 of limited property value.
Note 2 – Prior Period Adjustment
Net position/fund balance as of June 30, 2021, has been restated due to the recognition of assets contributed
by developers that occurred in previous fiscal years but was not properly recorded.

Net position/fund balance as previously
reported at June 30, 2021
Capital Assets, Infrastructure - Contributed Capital
Net position/fund balance as restated, July 1, 2021

Governmental
Activities

BusinessType
Activities

Water
Fund

Wastewater
Fund

$ 1,080,046,316
18,115,022
$ 1,098,161,338

$ 925,860,039
21,823,096
$ 947,683,135

$ 496,575,585
13,642,362
$ 510,217,947

$ 376,808,921
6,799,043
$ 383,607,964

Environmental
Services
Fund
$
$

50,438,441
1,381,691
51,820,132

Note 3 – Deposits and Investments
The Arizona Revised Statutes require a pooled collateral program for public deposits and a Statewide Collateral
Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of the pooled collateral
program is to ensure that governmental entities’ public deposits placed in participating depositories are secured
with collateral of 102% of the public deposits, less any applicable deposit insurance. An eligible depository may
not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow
agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on
each depository’s compliance with the program.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
The investment of public monies is also regulated by the Arizona Revised Statutes Title 35. Gilbert limits its
investments to the Local Government Investment Pools 7 and 700 (that only invest in U.S. government
securities and managed by the Arizona State Treasurer), U.S. government securities, certificates of deposit,
bonds, corporate notes, asset-backed securities, commercial paper, and money market accounts. The State
Board of Investment provides oversight for the State Treasurer’s pools. The fair value of a participant’s position
in the pool approximates the value of that participant’s pool shares, and the participant’s shares are not
identified with specific investments. Participants in the pool are not required to categorize the value of shares
in accordance with the fair value hierarchy.
Gilbert categorizes its fair value measurements within the fair value hierarchy established by GAAP. The
hierarchy is based on the valuation inputs used to measure the fair value of the asset. Investments categorized
as Level 1 are valued using prices quoted in active markets for those investments. Investments categorized as
Level 2 are valued based on significant other observable inputs, which may include, but are not limited to,
quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar
assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the
assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit
risks and default rates) or other market corroborated inputs. Gilbert had total investments of $1,324,023,278 at
June 30, 2022.
Gilbert categorizes certain investments within the fair value hierarchy established by generally accepted
accounting principles as follows:
Fair Value Measurement Using
Investment Type
Fair Value
Level 1
Level 2
U.S. Government Treasuries
$
415,637,149
$ 415,637,149
$
U.S. Government Agencies
137,897,389
137,897,389
Corporate Notes
72,020,040
72,020,040
Certificates of Deposit
3,320,753
3,320,753
Commercial Paper
53,560,665
53,560,665
Asset Backed Securities
5,130,384
5,130,384
Municipal Bonds
5,037,638
5,037,638
Money Market
495,376,298
495,376,298
Total Investments Categorized by Fair Value Level
$ 1,187,980,316
$ 415,637,149
$ 772,343,167
External Investment Pools Measured at Fair Value
State Treasurer's Investment Pool
Total Investments Measured at Fair Value

$

136,042,962
1,324,023,278

Interest rate risk – Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from
rising interest rates, Gilbert’s investment policy limits its investment portfolio to maturities of five years or less.

56

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
At June 30, 2022, Gilbert’s investment maturities were as follows:

Investment Type
U.S. Government Treasuries
U.S. Government Agencies
Corporate Notes
Certificates of Deposit
Commercial Paper
Asset Backed Securities
Municipal Bonds
State Treasurer's Investment Pool
Money Market
Total

Fair Value
415,637,149
137,897,389
72,020,040
3,320,753
53,560,665
5,130,384
5,037,638
136,042,962
495,376,298
$ 1,324,023,278
$

Investment Maturities
(in Years)
Less than 1
1-5
$ 62,185,381
$ 353,451,768
66,129,554
71,767,835
19,541,681
52,478,359
3,320,753
53,560,665
5,130,384
2,855,000
2,182,638
110,182,658
25,860,304
495,376,298
$ 813,151,990
$ 510,871,288

Credit risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. Gilbert addresses credit risk through its investment policy by restricting the allowable
investment instruments. As of June 30, 2022, the investments in the U.S. Government Treasuries were rated
AA+, U.S. Government Agencies were rated AA+, Corporate Note ratings ranged from BBB+ to AAA,
Certificates of Deposit ratings were A-1+, Asset Backed Securities were rated AAA, Commercial Paper ratings
ranged from A-1 to A-1+, and Municipal Bond ratings ranged from AA+ to AAA. Gilbert’s investment in the
State Treasurer’s Investment Pool did not receive a credit quality rating from a national rating agency.
Custodial credit risk – deposits – Custodial credit risk is the risk that in the event of a bank failure, Gilbert’s
deposits may not be returned. As of June 30, 2022, Gilbert’s bank balance with JP Morgan was $32,202,240 of
which $31,952,240 was exposed to custodial credit risk. JP Morgan’s balance was uninsured but collateralized
with securities held by the pledging financial institution’s trustee. These securities are not in Gilbert’s name, but
cannot be released without Gilbert’s authorization. At the end of each day, a portion of Gilbert’s bank balance
is transferred to a sweep investment account.
Custodial credit risk – investments – The custodial credit risk for investments is the risk that, in the event of the
failures of the counterparty (e.g. broker-dealer) to a transaction, Gilbert will not be able to recover the value of
its investment or collateral securities that are in the possession of another party. Gilbert’s investment policy
limits its exposure to custodial credit risk by requiring that all security transactions entered into by Gilbert be
conducted on a delivery-versus-payment basis. Securities are to be held by a third-party custodian. Gilbert’s
investment in the State Treasurer’s Investment Pool represents a proportionate interest in the Pool’s portfolio;
however, Gilbert’s portion is not identified with specific investments and is not subject to custodial credit risk.
Concentration of credit risk – Gilbert’s investment policy limits corporate notes to 20% of total funds and 3% per
issuer. As of June 30, 2022, of Gilbert’s investments, 50% were in U.S. Government Treasuries, 17% were in
U.S. Government Agencies, 9% were in Corporate Notes, 6% were in Commercial Paper, 1% were in Asset
Backed Securities, 1% were in Municipal Bonds and 16% were in the State Treasurer’s Investment Pool.

57

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Reconciliation of pooled cash and investments as reported on the Statement of Net Position:
Primary government:
Carrying amount of cash
Carrying amount of deposits/investments
Total cash and investments

$
$

Pooled cash and investments
Restricted cash and investments
Total cash and investments

$
$

28,593,009
1,324,023,278
1,352,616,287
1,335,992,105
16,624,182
1,352,616,287

Note 4 – Taxes Receivable and Due from Other Governments
The General Fund taxes receivable amount of $18,206,528 at June 30, 2022, includes $1,424,465 in stateshared sales tax and $16,782,063 in local sales tax.
Amounts reported as due from other governments for governmental funds at June 30, 2022, are summarized
as follows:
General Fund
Vehicle License Tax
Other Intergovernmental

$

471,335
22,683

Streets Special Revenue Fund
Highway User Revenue Funds

1,963,462

Nonmajor Funds
Maricopa County Attorney's Office - Racketeer Influenced Corrupt Organization Funds
U.S. Department of Housing and Urban Development CDBG and HOME
Other Grant Reimbursements

2,161,270
890,432
163,640

Total Governmental Funds

$

5,672,822

Amounts reported as due from other governments for proprietary funds at June 30, 2022, are summarized as
follows:
Water Fund
City of Chandler - Joint Operation of SanTan Vista Water Treatment Plant

$

Wastewater Fund
City of Mesa Project Rebate
Town of Queen Creek Reclaimed Water Credit

180,610

84,867
18,402

Total Enterprise Funds
Internal Service Funds
Chandler Unified Fuel Costs
ASRS/PSPRS Retiree Contributions
Total Internal Service Funds

58

$

283,879

$

2,315
26,264

$

28,579

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 5 – Lease Receivables
Gilbert leases building space, cell tower, license, and right-of-way use, to third parties under the provisions of
various agreements. Gilbert’s agreements, that meet the definition of a lease according to GASB Statement
No. 87, convey to its lessees the right to use certain assets that Gilbert owns in exchange-like transactions for
consideration in amounts that are fixed in substance, other than short-term leases. Gilbert has various longterm lease agreements and therefore the total lease receivable balance at June 30, 2022 is not expected to be
collected within the next year.
During the fiscal year ended June 30, 2022, Gilbert recognized total lease-related revenues of $947,188. This
was comprised of lease revenue of $781,387 and interest revenue of $165,801. Lease-related revenues are
recorded as charges for service in the General Fund.
Gilbert’s lease contracts include variable lease payments, that are not included in the lease receivable because
they are not fixed in substance. During the fiscal year ended June 30, 2022, Gilbert recognized revenues of
$3,051,915 for variable lease payments not included in the measurement of the lease receivables.
Note 6 – Interfund Receivables and Payables
The composition of interfund balances as of June 30, 2022, is shown below.
Due to/from other funds are short-term loans that cover cash deficits and are recorded in the following
Governmental Funds (cash deficits are temporary, until reimbursements are received):
Due From
803,724
$
803,724

General
Other Governmental Funds
Total

$

Due To
$
$

803,724
803,724

Advances to/from other funds are long-term loans that cover cash deficits for capital expenditures and are
recorded in the following funds:
Advances To
Advances From
Governmental Funds:
General
$
6,675,007
$
Municipal Facilities Capital Projects
5,375,007
Total Governmental Funds
6,675,007
5,375,007
Internal Service Funds:
Employee Benefit - Self Insurance
Total

$

59

6,675,007

$

1,300,000
6,675,007

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 7 – Capital Assets
A summary of changes in capital assets for governmental activities, for the fiscal year ended June 30, 2022, is
as follows:
June 30, 2021
(as restated)
Additions
Deletions
June 30, 2022
Non-depreciable assets:
Land
$ 132,257,980 $ 8,188,555 $
(304,362) $ 140,142,173
Construction-in-progress
174,869,102
45,441,551
(47,748,108)
172,562,545
Total non-depreciable assets
307,127,082
53,630,106
(48,052,470)
312,704,718
Depreciable assets:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total depreciable assets
Less accumulated depreciation:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total depreciable assets, net
Governmental activities
capital assets, net

348,709,071
76,738,154
81,373,216
1,152,388,163
1,659,208,604

416,397
804,122
8,473,338
56,619,110
66,312,967

(3,587,473)
(3,587,473)

349,125,468
77,542,276
86,259,081
1,209,007,273
1,721,934,098

(146,621,683)
(57,130,963)
(54,304,488)
(637,329,767)
(895,386,901)
763,821,703

(13,522,435)
(2,749,569)
(4,916,072)
(36,720,964)
(57,909,040)
8,403,927

3,519,409
3,519,409
(68,064)

(160,144,118)
(59,880,532)
(55,701,151)
(674,050,731)
(949,776,532)
772,157,566

$ 1,070,948,785

$ 62,034,033

$ (48,120,534)

$ 1,084,862,284

Depreciation expense was charged to governmental functions in the government-wide financial statement as
follows:
Management and policy
$
494,235
Finance and management services
389,159
Legal and court
459,768
Development services
2,371,951
Police
4,505,380
Fire
5,446,869
Highways and streets
38,176,603
Parks and recreation
6,027,023
Total depreciation expense not including internal service funds
57,870,988
Capital assets held by Gilbert's internal service funds are charged
to the various functions based on their usage of the assets
38,052
Total depreciation expense - governmental activities
$ 57,909,040

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
A summary of changes in capital assets for business-type activities, for the fiscal year ended June 30, 2022, is
as follows:
June 30, 2021
(as restated)
Non-depreciable assets:
Land
Water rights
Construction-in-progress
Total non-depreciable assets

$

Depreciable assets:
Plant and equipment
Infrastructure
Water rights
Total depreciable assets
Less accumulated depreciation:
Plant and equipment
Infrastructure
Water rights
Total accumulated depreciation
Total depreciable assets, net
Business-type activities
capital assets, net

$

23,515,126
59,427,744
61,038,529
143,981,399

Additions
$

592,645
5,262,612
51,640,986
57,496,243

$

Deletions

June 30, 2022

(18,614,348)
(18,614,348)

$

24,107,771
64,690,356
94,065,167
182,863,294

153,275,131
670,689,214
40,354,519
864,318,864

3,204,653
34,740,544
37,945,197

(863,319)
(863,319)

155,616,465
705,429,758
40,354,519
901,400,742

(90,286,684)
(263,068,771)
(3,129,082)
(356,484,537)
507,834,327

(8,182,631)
(18,400,130)
(410,429)
(26,993,190)
10,952,007

863,319
863,319
-

(97,605,996)
(281,468,901)
(3,539,511)
(382,614,408)
518,786,334

651,815,726

$ 68,448,250

$ (18,614,348)

$

701,649,628

Note 8 – Construction-in-Progress and Commitments
Governmental activities construction-in-progress and related construction commitments at June 30, 2022, were
as follows:

Streets and traffic
Parks
Municipal facilities
Redevelopment
Fleet
Total

Constructionin-Progress
$ 60,309,895
64,546,534
17,227,687
30,471,103
7,326
$ 172,562,545

Commitments
$ 7,293,757
1,208,773
9,568,364
1,433,336
$ 19,504,230

Business-type activities construction-in-progress and related construction commitments at June 30, 2022,
were as follows:
Constructionin-Progress
$ 64,846,647
28,436,653
781,867
$ 94,065,167

Water system
Wastewater system
Environmental services
Total

61

Commitments
$ 67,351,525
16,604,366
$ 83,955,891

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 9 – Long-Term Debt
General Obligation Bonds
Gilbert issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities including street improvements and the Public Safety Training Facility. General obligation bonds have
been issued for both governmental and business-type activities. Currently, there are no outstanding general
obligation bonds for business-type activities. General obligation bonds are direct obligations and pledge the full
faith and credit of Gilbert.
General obligation bonds outstanding at June 30, 2022, were as follows:
Governmental
2017 General Obligation and General Obligation
Refunding Bonds, Series 2017, 3.0% to 5.0%,
original amount $121,670,000, annual retirements
due July 1, 2017, through July 1, 2036

$

42,430,000

2020 General Obligation and General Obligation
Refunding Bonds, Series 2020, 2.0% to 4.0%,
original amount $76,750,000, annual retirements
due July 1, 2020, through July 1, 2039

67,125,000

2022 General Obligation Bonds, Series 2022
Bonds, Series 2022, 3.375% to 5.0%,
original amount $188,910,000, annual retirements
due July 15, 2023, through July 15, 2041

188,910,000

Total

$

298,465,000

Annual debt service requirements to maturity for general obligation bonds are as follows:

Year Ending
2023
2024
2025
2026
2027
2028-32
2033-37
2038-42

Governmental Activities
Principal
Interest
$
18,530,000
$
9,263,175
21,805,000
11,100,950
22,630,000
10,011,675
25,440,000
8,832,600
10,470,000
7,958,350
60,075,000
32,049,601
74,480,000
17,652,228
65,035,000
5,248,658
$ 298,465,000
$ 102,117,237

62

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Under the provisions of the Arizona Constitution, outstanding general obligation bonded debt for combined
water, wastewater, electric, parks and open space, streets, and public safety purposes may not exceed 20% of
Gilbert's net full cash (NFC) valuation, nor may outstanding general obligation bonded debt for all other
purposes exceed 6% of Gilbert's NFC valuation. The following is a summary of legal borrowing capacity at
June 30, 2022:
Water, Wastewater, Electric, Streets, Fire,
Police, and Parks and Open Space
Special Purpose Bonds

All Other General
Obligation Bonds

NFC - Assessed Valuation

$ 3,805,306,307

NFC - Assessed Valuation

$ 3,805,306,307

20% constitutional limit
Less general obligation bonds
outstanding
Less premium adjustment
Available 20% limitation
borrowing capacity

$

6% constitutional limit
Less general obligation bonds
outstanding
Less premium adjustment
Available 6% limitation
borrowing capacity

$

761,061,261
(298,465,000)
(20,134,505)

$

442,461,756

228,318,378
-

$

228,318,378

Special Assessment Bonds with Governmental Commitment
As trustee for the improvement districts, Gilbert is responsible for collection of assessments levied against the
owners of property within the improvement districts and for disbursement of these amounts for retirement of the
respective bonds issued to finance the improvements. At June 30, 2022, the special assessments receivable,
together with amounts paid in advance and interest to be received over the life of the assessment period, were
adequate for the scheduled maturities of the bonds payable and the related interest. Special assessment
bonds are collateralized by properties within the districts. In the event of default by the owner, Gilbert may
enforce an auction sale to satisfy the debt service requirements of the improvement bonds. Gilbert is
contingently liable on special assessment bonds to the extent that proceeds from auction sales are insufficient
to retire outstanding bonds.
Special assessment bonds outstanding at June 30, 2022, were as follows:
Governmental
2002 Improvement District #19 Bonds, 5.2%,
original amount $6,510,000, annual retirements
due January 1, 2005, through January 1, 2027

$

2009 Improvement District #20 Bonds, 5.1%,
original amount $8,675,000, annual retirements
due January 1, 2012, through January 1, 2029
Total

2,785,000
$

63

55,000

2,840,000

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Annual debt service requirements to maturity for special assessment bonds are as follows:

Year Ending
2023
2024
2025
2026
2027
2028-2029

Governmental Activities
Principal
Interest
$
350,000
$
135,965
370,000
117,595
390,000
98,203
405,000
77,918
425,000
56,743
900,000
46,410
$
2,840,000
$
532,834

Municipal Property Corporation (MPC) Revenue Bonds
The Public Facilities MPC exists solely for the purpose of financing the cost of acquisition and construction of
real property for public safety and parks and recreation facilities. The Water MPC exists solely for the purpose
of financing the construction of water and wastewater capital improvement projects. Also, see Note 18
regarding Pledged Revenues.
Municipal property corporation revenue bonds outstanding at June 30, 2022, were as follows:

2017 Public Facilities Municipal Property Corporation
Revenue Refunding Bonds, 3.0% to 5.0%, original
amount $43,075,000, annual retirements due
July 1, 2018 through July 1, 2027

Governmental

Business-Type

$

$

2017 Public Facilities Municipal Property Corporation
Revenue Bonds, 4.0% to 5.0%, original amount
$6,450,000, annual retirements due July 1, 2022
through July 1, 2027

24,875,000

5,490,000

-

-

2016 Water Resources Municipal Property Corporation,
Senior Lien Utility System Revenue and Revenue
Refunding Bonds, 2.25% to 5.0%, original amount
$115,940,000, annual retirements due July 1, 2017
through July 1, 2036

-

89,390,000

2018 Water Resources Municipal Property Corporation,
Senior Lien Utility System Revenue Bonds,
3.0% to 5.0%, original amount $37,460,000
annual retirements due July 1, 2018 through
July 1, 2031

-

27,965,000

2022 Water Resources Municipal Property Corporation,
Senior Lien Utility System Revenue Bonds,
4.0% to 5.0%, original amount $473,005,000
annual retirements due July 15, 2023 through
July 15, 2047

-

473,005,000

Total

$

64

30,365,000

$

590,360,000

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Annual debt service requirements to maturity for MPC revenue bonds are as follows:

Year Ending
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2047
2048

Governmental Activities
Principal
Interest
$
5,500,000
$
1,508,250
5,770,000
1,243,250
6,055,000
954,750
6,360,000
652,000
6,680,000
334,000
$
30,365,000
$
4,692,250

$

$

Business-type Activities
Principal
Interest
8,340,000
$
17,661,553
19,735,000
25,984,588
20,715,000
24,973,338
21,760,000
23,911,463
22,885,000
22,832,613
134,465,000
96,887,644
136,095,000
64,628,125
151,995,000
31,094,675
65,710,000
6,246,800
8,660,000
173,200
590,360,000
$ 314,393,999

University Revenue Obligations
The University Revenue Obligations were issued specifically for the purpose of providing funds to design and
construct a four-story building to be utilized for educational purposes. These obligations are payable solely
from the revenues generated by excise taxes and state-shared revenue.
Subordinate lien pledged revenue obligations outstanding at June 30, 2022, were as follows:
Governmental
Subordinate Lien Pledged Revenue Obligations,
Series 2015, 3.0% to 5.0% original amount
$36,980,000, annual retirements due July 1, 2017
through July 1, 2045

$

33,450,000

Annual debt service requirements to maturity for subordinate lien pledged revenue obligations are as follows:

Year Ending
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2046

Governmental Activities
Principal
Interest
$
810,000
$
1,428,956
850,000
1,387,456
895,000
1,343,831
935,000
1,298,081
985,000
1,250,081
5,690,000
5,482,935
6,845,000
4,316,194
8,250,000
2,931,981
8,190,000
844,000
$
33,450,000
$
20,283,515

65

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2022, was as follows:
Balance
July 1, 2021
Governmental activities:
Bonds payable:
General obligation bonds
Special assessment bonds with
government commitment
Revenue bonds
Revenue obligations
Unamortized bond premium
Total bonds payable
Compensated absences
Other postemployment benefits
Net pension liability
Total long-term liabilities
Business-type activities:
Bonds payable:
Revenue bonds
Unamortized bond premium
Total bonds payable
Compensated absences
Other postemployment benefits
Net pension liability
Total long-term liabilities

Additions

Reductions

Balance
June 30, 2022

131,830,000

$ 188,910,000

$ (22,275,000)

$

4,000,000
44,955,000
34,220,000
22,465,283
237,470,283
18,183,278
792,505
128,814,321

12,917,121
201,827,121
12,401,676
80,858
-

(1,160,000)
(14,590,000)
(770,000)
(1,835,605)
(40,630,605)
(10,459,972)
(72,521,388)

$

385,260,387

$ 214,309,655

$ (123,611,965)

$

475,958,077

$

31,819,942

$

125,305,000
17,343,020
142,648,020
2,915,107
178,115
24,740,232

$ 473,005,000
28,217,643
501,222,643
2,189,014
18,444
-

$

(7,950,000)
(1,534,730)
(9,484,730)
(2,122,874)
(4,644,425)

$

590,360,000
44,025,933
634,385,933
2,981,247
196,559
20,095,807

$

8,340,000
8,340,000
1,033,115
-

$

170,481,474

$ 503,430,101

$ (16,252,029)

$

657,659,546

$

9,373,115

$

298,465,000

Due Within
One Year

$

2,840,000
30,365,000
33,450,000
33,546,799
398,666,799
20,124,982
873,363
56,292,933

18,530,000
350,000
5,500,000
810,000
25,190,000
6,629,942
-

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them
are included as part of the above totals for governmental activities. At year-end, $192,795 of internal service
funds compensated absences, $1,841,472 of net pension liability, and $17,426 of other postemployment
benefits liability are included in the above amounts.
Long-term compensated absences, other postemployment benefits, and the net pension liability of
governmental activities are expected to be liquidated by the operating funds (primarily the General Fund and
the Streets Special Revenue Fund) as they come due.
Gilbert does not have any outstanding notes from direct borrowings or direct placements, no assets pledged as
collateral for debt, nor any outstanding lines of credit.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 10 – Risk Management
Traditional Commercial Insurance Programs
Gilbert operates with traditional commercial insurance programs to protect against major losses in cybercrime,
property, public entity, storage tank, drone, and equipment liability. Administrative responsibility for the safety
program resides with the Office of the Town Manager, and administrative responsibility for risk management
(including education) resides with the Risk Management Division of the Town Attorney’s Office. Insurance is
procured annually on a competitive quotation basis, using the services of an independent broker as a
consultant. Risk Management processes all claims and evaluates their validity to determine if insurance
reporting is warranted, or if the claim can be resolved administratively. Claims settled administratively, which
are generally less than the deductibles of the appropriate policy, are paid from the funds where the claims
occurred. During fiscal year 2022, there was no reduction in insurance coverage from prior years. Additionally,
settlements and judgements have not exceeded insurance coverage during any of the last three fiscal years.
Effective July 1, 2022, Gilbert’s Town Council approved and established the Risk Management Self-Insurance
Retention Trust beginning fiscal year 2023. The purpose of the Trust Fund is to provide funding for payment of
benefits, losses and claims as set forth in A.R.S. 1-981(A), including legal costs administrative costs, claims
adjusting costs, losses (including those related to personal injury and property damage), reserves for
anticipated losses and lawsuits, insurance costs (including premiums), external audit, and other expenses
related to the operation of the Risk Management Self-Insurance Program.
Self-Insurance
Gilbert established an Internal Service Fund to account for the Employee Benefit Self-Insurance Trusts
(Trusts), which finance the uninsured risk of loss related to medical, dental, and workers' compensation claims.
The Trusts are overseen by the Health Trust Board and the Workers’ Compensation Trust Board. Gilbert
purchases commercial stop loss insurance to limit the claims liability to the Trusts. The stop loss insurance
provides reimbursement to the Trusts for medical claims incurred by an individual member in excess of
$250,000 after an additional $150,000 aggregate plan risk retention, workers’ compensation claims in excess of
$750,000, and presumptive loss claims in excess of $2,000,000. Premiums are paid into the Trusts by funds
and are available to pay claims and administrative costs of the program and fund claim reserves. As with any
risk retention program, Gilbert is contingently liable with respect to claims beyond those actuarially projected.
The claims liability of $7,369,518 reported as claims payable in the Trusts at June 30, 2022, is based on the
requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability be
reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including
frequency and amount of payouts and other economic and social factors. Liabilities include an amount for
claims that have been incurred but not reported (IBNR).

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Changes in the Trusts’ claim liability amount in fiscal years 2022 and 2021 were:

Year
Ended
June 30,
2022

Risk of Loss
Health

$

Dental
Workers' Compensation

2021

Health

Current Year
Claims and
Changes in
Estimates

Beginning of
Fiscal Year
Balance
2,328,000

$

24,448,766

Balance at
Fiscal Year
End

Claim
Payments
$

(23,204,766)

$

3,572,000

111,000

1,311,168

(1,326,168)

96,000

1,629,000

3,657,034

(1,584,516)

3,701,518

$

4,068,000

$

29,416,968

$

(26,115,450)

$

7,369,518

$

1,936,000

$

19,217,387

$

(18,825,387)

$

2,328,000

Dental
Workers' Compensation
$

89,000

1,178,185

(1,156,185)

111,000

-

2,200,371

(571,371)

1,629,000

2,025,000

$

22,595,943

$

(20,552,943)

$

4,068,000

Note 11 – Pensions and Other Postemployment Benefits
Gilbert contributes to the following pension and OPEB plans:







Elected Officials Retirement Plan (EORP) Pension
Arizona State Retirement System (ASRS) Pension
ASRS Health Insurance Premium Supplement (OPEB)
ASRS Long-Term Disability (OPEB)
Public Safety Personnel Retirement System (PSPRS) Pension
PSPRS Health Insurance Premium Benefit (OPEB)

Gilbert also provides postemployment medical care, prescription drug, and dental care for retired employees
through a single-employer defined benefit medical and dental plan. The ASRS, PSPRS, and EORP OPEB plan
information is not disclosed in detail in this note due to their relative insignificance to the financial statements.
See Note 12 for information on Gilbert’s OPEB plan. The ASRS and PSPRS plans are component units of the
State of Arizona.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Pension and OPEB
Statement of Net Position and Statement of Activities

Governmental
Activities

Business-Type
Activities

Assets:
Pension - PSPRS Police
Total

$
$

592,705
592,705

$
$

-

$
$

592,705
592,705

$

471,163
16,120,787
26,091,534
105,749
42,789,233

$

106,039
5,912,990
6,019,029

$

577,202
22,033,777
26,091,534
105,749
48,808,262

873,363
53,028,450
1,932,812
1,331,671
57,166,296

$

196,559
20,095,807
$ 20,292,366

$

1,170,634
16,801,279
32,286,842
206,704
50,465,459

$

263,462
6,367,058
6,630,520

$

111,572
6,935,729
2,267,224
3,628,002
54,019
12,996,546

$

25,566
2,747,410
2,772,976

$

Deferred Outflow of Resources:
OPEB - Town
Pension - ASRS
Pension - PSPRS Police/Fire
Pension - EORP
Total

$

Liabilities:
OPEB - Town
Pension - ASRS
Pension - PSPRS Fire
Pension - EORP
Total

$

$

Deferred Inflow of Resources:
OPEB - Town
Pension - ASRS
Pension - PSPRS Police/Fire
Pension - EORP
Total

$

$

Pension/OPEB Expense:
OPEB - Town
Pension - ASRS
Pension - PSPRS Fire
Pension - PSPRS Police
Pension - EORP

$

$

$

$

$

Total

$

$

$

$

1,069,922
73,124,257
1,932,812
1,331,671
77,458,662
1,434,096
23,168,337
32,286,842
206,704
57,095,979
137,138
9,683,139
2,267,224
3,628,002
54,019
15,769,522

Gilbert reported $13,733,440 of pension and OPEB contributions as expenditures in the governmental funds
related to all pension plans to which it contributed for fiscal year 2022.

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Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
A. Arizona State Retirement System
Plan Description – Gilbert employees not covered by the other pension plans described below participate in
the ASRS. The ASRS administers a cost-sharing multiple-employer defined benefit pension plan, a costsharing multiple-employer defined benefit health insurance premium supplement (OPEB) plan, and a costsharing multiple-employer defined benefit long-term disability (OPEB) plan. The ASRS is governed by the
Arizona State Retirement System Board 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 financial statements and required
supplementary information. This report is available on their 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

Final average salary based on

Benefit percent per year of service

Retirem ent Initial Mem bership Date:
Before July 1, 2011
On or After July 1, 2011
Sum of years and age equals 80
30 years, age 55
10 years, age 62
25 years, age 60
5 years, age 50*
10 years, age 62
Any years, age 65
5 years, age 50*
Any years, age 65

Highest 36 consecutive months
of last 120 months

Highest 60 consecutive months
of last 120 months

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 retirement benefit option chosen determines the survivor benefit. 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.
Contributions – In accordance with state statutes, annual actuarial valuations determine active member and
employer contribution requirements. The combined active member and employer contribution rates are
expected to finance the costs of benefits employees earn during the year, with an additional amount to finance
any unfunded accrued liability. For the year ended June 30, 2022, statute required active ASRS members to
contribute at the actuarially determined rate of 12.41% (12.22% for retirement and 0.19% for long term
disability) of the members’ annual covered payroll, and statute required Gilbert to contribute at the actuarially
determined rate of 12.41% (12.01% for retirement, 0.21% for health insurance premium benefit, and 0.19% for
long-term disability) of the members’ annual covered payroll. In addition, Gilbert was required by statute to
contribute at the actuarially determined rate of 10.22% (10.13% for retirement and 0.09% for long-term
disability) of annual covered payroll of retired members who worked for Gilbert in positions that an employee
who contributes to the ASRS would typically fill.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
During fiscal year 2022, Gilbert paid for ASRS pension contributions as follows: 61% from the general fund,
36% from major funds, and 3% from other funds. The contributions to the pension plan for fiscal year 2022
were $7,874,805.
Pension Liability – At June 30, 2022, Gilbert reported a liability of $73,124,257 for its proportionate share of
the ASRS’ net pension liability. The net pension liability were measured as of June 30, 2021. The total liability
used to calculate the net pension liability was determined using updated procedures to roll forward the total
pension liability from an actuarial valuation as of June 30, 2020, to the measurement date of June 30, 2021.
The total liabilities as of June 30, 2021, reflect changes in actuarial assumptions based on the results of an
actuarial experience study for the five-year period ended June 30, 2020, including decreasing the discount rate
from 7.5% to 7.0% and changing the projected salary increases from 2.7%-7.2% to 2.9%-8.4%.
Gilbert’s proportion of the net pension liability was based on Gilbert’s actual contributions to the plan relative to
the total of all participating employers’ contributions for the year ended June 30, 2021. Gilbert’s proportion
measured as of June 30, 2021, was 0.557%, which was an increase of 0.034% from its proportion measured as
of June 30, 2020.
Gilbert’s reported liability at June 30, 2022, decreased by $17,486,512 from the prior year liability of
$90,610,769 because of changes in the ASRS’ net pension liability and Gilbert’s proportionate share of that
liability. The ASRS’ publicly available financial report provides details on the change in the net pension liability.
The allocation of pension liability to the funds is based on employer contributions for the fiscal year.
Pension Expense and Deferred Outflows/Inflows of Resources – For the year ended June 30, 2022, Gilbert
recognized pension expense for ASRS of $9,683,139. At June 30, 2022, Gilbert reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between Gilbert
contributions and proportionate share of contributions
Gilbert contributions subsequent to the measurement date
Total

Deferred
Outflows
of Resources
$
1,114,712
9,517,707

Deferred
Inflows
of Resources
$
-

3,526,553
7,874,805
22,033,777

23,168,337

$

$

23,168,337

The $7,874,805 reported as deferred outflows of resources related to ASRS pensions resulting from Gilbert’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability
in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to ASRS pensions will be recognized in pension expense as follows:
Year Ending
June 30
2023
2024
2025
2026
2027
Thereafter

$

71

Amount
2,208,196
1,873,853
(5,107,431)
(7,983,983)
-

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Actuarial Assumptions – The significant actuarial assumptions used to measure the total pension liability are
as follows:
Actuarial valuation date
June 30, 2020
Actuarial rollforward date
June 30, 2021
Actuarial cost method
Entry age normal
Investment rate of return
7.0%
Projected salary increases
2.9% - 8.4%
Inflation
2.3%
Permanent benefit increase
Included
Mortality rates
2017 SRA Scale U-MP
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience
study for the 5-year period ended June 30, 2020.
The long-term expected rate of return on ASRS pension plan investments was determined to be 7.0% using a
building-block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by 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 geometric real rates of return for each major asset class are
summarized in the following table:

Asset Class
Equity
Fixed income - credit
Fixed income - interest rate sensitive
Real estate

Target
Allocation
50%
20%
10%
20%
100%

Long-Term
Expected
Geometric Real
Rate of Return
4.90%
5.20%
0.70%
5.70%

Discount Rate – At June 30, 2021, the discount rate used to measure the ASRS total pension liability was
7.0%, which was a decrease of 0.5% from the discount rate used as of June 30, 2020. 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 pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Sensitivity of Gilbert’s Proportionate Share of the ASRS Net Pension Liability to Changes in the
Discount Rate – The following presents Gilbert’s proportionate share of the net pension liability calculated
using the discount rate of 7.0%, as well as what Gilbert’s proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point
higher (8.0%) than the current rate:

1% Decrease
(6.0%)
Gilbert's proportionate share of
the net pension liability

$

115,018,332

Current
Discount Rate
(7.0%)
$

73,124,257

1% Increase
(8.0%)
$

38,196,190

Pension Plan Fiduciary Net Position – Detailed information about the pension 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 Description – The PSPRS administers agent and cost-sharing multiple-employer defined benefit pension
plans and agent multiple-employer defined benefit health insurance premium benefit (OPEB) plans. Gilbert
public safety employees who are regularly assigned hazardous duty participate in the PSPRS or employees
who became members on or after July 1, 2017, may participate in the Public Safety Personnel Defined
Contribution Retirement Plan (PSPDCRP). 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 became PSPRS members on or after July 1, 2017, participate in the cost-sharing plans
(PSPRS Tier 3 Risk Pool) which are not further disclosed because of their relative insignificance to Gilbert’s
financial statements.
The PSPRS issues a publicly available financial report that includes financial statements and required
supplementary information. This report is available on their website at www.psprs.com.

73

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Benefits Provided – The PSPRS provides retirement, health insurance premium supplement, disability, and
survivor benefits. State statute establishes benefits terms. Retirement and disability benefits are calculated on
the basis of age, average monthly compensation, and service credit as follows:

Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. PSPRS
also provides temporary disability benefits of 50% of the member’s compensation for up to 12 months.

74

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Employees Covered by Benefit Terms – At June 30, 2022, the following employees were covered by the
agent pension plan’s benefit terms:
Police
Fire
Inactive employees or beneficiaries currently receiving benefits
92
30
Inactive employees entitled to but not yet receiving benefits
57
21
Active employees
179
150
Total
328
201
Contributions and Annual OPEB Cost – State statutes establish the pension contribution requirements for
active PSPRS employees. In accordance with state statutes, annual actuarial valuations determine employer
contribution requirements for PSPRS pension and health insurance premium benefits. The combined active
member and employer contribution rates are expected to finance the costs of benefits employees earn during
the year, with an additional amount to finance any unfunded accrued liability. Contribution rates for the year
ended June 30, 2022, are indicated below. Rates are a percentage of active members’ annual covered payroll.
Active
MemberPension
Police
PSPRS Tier 1
PSPRS Tier 2
PSPRS Tier 3
Defined benefit only
PSPRS Tier 3
Defined contribution only
Fire
PSPRS Tier 1
PSPRS Tier 2
PSPRS Tier 3
Defined benefit only
PSPRS Tier 3
Defined contribution only

Active
MemberHealth

7.65%
11.65%
9.05%

0.13%

GilbertPension

GilbertHealth

24.04%
24.04%

0.17%
0.17%

19.33%

0.13%

9.88%

19.40%

7.65%
11.65%

20.95%
20.95%

0.25%
0.25%

15.83%

0.13%

9.05%

0.13%

9.88%

15.90%

In addition, the statute required Gilbert to contribute at the actuarially determined rate indicated above for
employees participating in the PSPRS Tier 3 Risk Pool and PSPDCRP members in addition to Gilbert’s
required contributions to the PSPRS Tier 3 Risk Pool and PSPDCRP.
For the agent plans, actual contributions made to the pension plan for the year ended June 30, 2022, exceeded
the annual pension cost due to an additional payment made towards the unfunded liability (100% from the
General Fund):

Pension contributions made

Police
4,446,932

$

$

Fire
3,513,087

Pension Liability – At June 30, 2022, Gilbert reported $592,705 in net pension asset for PSRPS Police and
$1,932,812 in net pension liability for PSRPS Fire. The net pension liabilities were measured as of June 30,
2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date.

75

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Actuarial Assumptions – The significant actuarial assumptions used to measure the total pension liability are
as follows:

Actuarial valuation date
Actuarial cost method
Investment rate of return
Wage inflation
Price inflation
Cost-of-living adjustment
Mortality rates

June 30, 2021
Entry age normal
7.3%
3.5%
2.5%
1.75%
PubS-2010 tables

Actuarial assumptions used in the June 30, 2021, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2017.
The long-term expected rate of return on PSPRS pension plan investments was determined to be 7.3% using a
building-block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension 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:

Target
Allocation
24%
16%
20%
7%
2%
20%
10%
1%
100%

Asset Class
U.S. Public Equity
International public equity
Global private equity
Other assets (capital appreciation)
Core bonds
Private credit
Diversifying strategies
Cash

Long-Term
Expected
Geometric Real
Rate of Return
4.08%
5.20%
7.67%
5.43%
0.42%
5.74%
3.99%
-0.31%

Pension Discount Rates – At June 30, 2021, the discount rate used to measure total pension liability was
7.3%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that employer contributions will be made at rates
equal to the difference between actuarially determined contribution rates and the member rate. Based on those
assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.

76

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Changes in the Agent Plans Net Pension Liability / (Asset)
Police
Total Pension
Liability
Balances at June 30, 2021
Changes for the year:
Service cost
Interest on the total pension liability
Differences between expected results and actual
experience in the measurement of the total
pension liability

$

165,261,046

Increase/ (Decrease)
Plan Fiduciary
Net Pension
Net Position
Liability / (Asset)
$

4,070,093
12,099,505

Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Net changes
Balances at June 30, 2022

$

97,134
(7,168,987)
9,097,745
174,358,791

Fire
Total Pension
Liability
Balances at June 30, 2021
Changes for the year:
Service cost
Interest on the total pension liability
Differences between expected results and actual
experience in the measurement of the total
pension liability

$

113,443,930

77

$

3,168,376
(2,791,898)
12,427,155
125,871,085

$

-

$

19,610,018
1,581,158
36,645,254
(7,168,987)
(172,063)
50,495,380
174,951,496

$

93,028,870

$

$

97,134
(19,610,018)
(1,581,158)
(36,645,254)
172,063
(41,397,635)
(592,705)

Net Pension
Liability
$

-

5,838,307
1,341,353
26,646,654
(2,791,898)
(125,013)
30,909,403
123,938,273

40,804,930
4,070,093
12,099,505

Increase/ (Decrease)
Plan Fiduciary
Net Position

3,607,805
8,442,872

Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Net changes
Balances at June 30, 2022

124,456,116

20,415,060
3,607,805
8,442,872

$

3,168,376
(5,838,307)
(1,341,353)
(26,646,654)
125,013
(18,482,248)
1,932,812

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents Gilbert’s
net pension liability calculated using the discount rate of 7.3%, as well as what the net pension liability would be
if it were calculated using a discount rate that is 1 percentage point lower (6.3%) or 1 percentage point higher
(8.3%) than the current rate:
Current
1% Decrease
Discount Rate
1% Increase
(6.3%)
(7.3%)
(8.3%)
Police net pension liability / (asset)
$
25,952,114 $
(592,705) $
(21,972,396)
Fire net pension liability / (asset)
22,093,524
1,932,812
(14,402,676)

Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is
available in the separately issued PSPRS financial report. The report is available on the PSPRS website at
www.psprs.com.
Pension Expense – For the year ended June 30, 2022, Gilbert recognized $3,628,002 as pension expense for
Police and $2,267,224 as pension expense for Fire.
Pension Deferred Outflows/Inflows of Resources – At June 30, 2022, Gilbert reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:

Police
Differences between expected and actual experience
Changes in assumptions or other inputs
Net difference between projected and actual earnings
on pension plan investments
Gilbert contributions subsequent to the measurement date
Total

Fire
Differences between expected and actual experience
Changes in assumptions or other inputs
Net difference between projected and actual earnings
on pension plan investments
Gilbert contributions subsequent to the measurement date
Total

78

Deferred
Outflows
of Resources
$
3,819,389
3,137,356

Deferred
Inflows
of Resources
$
-

4,446,932
11,403,677

17,036,947
17,036,947

$

$

Deferred
Outflows
of Resources
$
8,088,562
3,086,208

Deferred
Inflows
of Resources
$
3,146,348
-

3,513,087
14,687,857

12,103,547
15,249,895

$

$

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
The $4,446,932 for Police and the $3,513,087 for Fire reported as deferred outflows of resources related to
PSPRS pension resulting from contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ending
June 30
2023
2024
2025
2026
2027
Thereafter

$

Police
(1,446,500)
(2,273,233)
(2,721,032)
(4,134,090)
494,653
-

$

Fire
(1,074,668)
(1,098,089)
(1,533,247)
(2,652,743)
809,749
1,473,873

Note 12 – Postemployment Healthcare Benefits
Under authority of Town Council, Gilbert provides postretirement insurance benefits, for certain retirees and
their dependents in accordance with the Town of Gilbert, Arizona Self-Insured Trust Fund for Health Insurance
Benefits. The plan is a single-employer defined benefit OPEB plan administered by Gilbert. No assets are
accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. Generally, retiree
contributions are used to pay for postemployment benefits.
Benefits Provided – Gilbert provides postemployment medical care, prescription drug, and dental care for
retired employees through a single-employer defined benefit medical and dental plan (the Plan). The Plan
provides medical and dental benefits for eligible retirees, their spouses and dependents through Gilbert’s group
health and dental insurance plans, which cover active and retired members. To be eligible for benefits, the
retired employee must retire under one of the state retirement plans for public employees, must have a
minimum of ten years of service with Gilbert, and be covered under Gilbert’s medical plan during their active
status. Plan benefits and coverage levels are reviewed annually by Town staff and the Board of Trustees for
recommendation to and approval from Town Council. The Board of Trustees makes corresponding premium
recommendations to the Town Council based on revenues needed to cover the projected cost to operate the
plan which are subject to approval by the Town Council. As of June 30, 2022, there are 57 retirees that are
currently receiving medical and/or dental benefits.
Contributions – Gilbert requires retirees to pay 125% of the premium of the plan selected by the retiree.
Gilbert makes no contributions for retirees other than allowing them to participate through Gilbert’s pooled
benefits. Town retirees are eligible to receive benefits through age 65, up until they have access to Medicare.
By providing retirees access to Gilbert’s healthcare plans, Gilbert is in effect providing a subsidy to retirees.
This implied subsidy exists because on average, retiree healthcare costs are higher than active employee
healthcare costs. Gilbert pays for and reports retiree benefits on a pay-as-you-go basis, which is the practice of
paying for these benefits as they become due each year. As of June 30, 2022, retirees contributed $582,440,
which was in excess of claims paid by $319,896. Gilbert’s regular insurance providers underwrite the retiree
policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent
plans. The Plan does not issue a separate financial report.

79

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TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Employees Covered by Benefit Terms – The following employees were covered as of the effective date of
the OPEB valuation:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total

57
1,259
1,316

Total OPEB Liability – The Plan’s total OPEB liability of $1,069,922 was measured as of June 30, 2022.
Actuarial Assumptions and Other Inputs – Projections of benefits for financial reporting purposes are based
on the substantive plan (the plan as understood by the employer and plan members) and includes the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit cost between the
employer and plan members to that point. The total OPEB liability in the June 30, 2022 actuarial valuation was
determined using the following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
Measurement date
Actuarial valuation date
Interest rate
Inflation rate
Projected salary increases
Health care cost trend rate:
Medical and prescription drug

June 30, 2022
June 30, 2021
3.69%
2.40%
3.00%
6.00% graded down to an ultimate rate
of 5.00% over 5 years
Consistent with medical/drug trends
None
N/A

Retiree contribution increase
ASRS subsidy increases
Cost of living adjustments

The discount rate was based on the Fidelity General Obligation AA 20-year yield as of the measurement date.
Mortality rates for active employees were based on the PubG.H-2010 (general employees) and PubS.H-2010
(public safety) Employee Mortality Table, Generational with Projection Scale MP-2021 for males/females.
Mortality rates for retirees were based on the PubG.H-2010 (current retirees and general employees) PubS.H2010 (public safety) Healthy Annuitant Mortality Table, Generational with Projection Scale MP-2021 for
males/females.
Changes in the Total OPEB Liability
Balances at June 30, 2021
Changes for the year:
Service cost
Interest
Differences between expected and actual experience
Changes in assumptions/inputs
Benefit payments
Net changes
Balances at June 30, 2022

80

$

970,620

$

101,360
23,174
(249,173)
(46,068)
270,009
99,302
1,069,922

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the total
OPEB liability of the Plan, as well as what the Plan’s total OPEB liability would be if it were calculated using a
discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Total OPEB Liability

1% Decrease
(2.69%)
$
1,103,170

Current
Discount Rate
(3.69%)
$
1,069,922

1% Increase
(4.69%)
$
771,756

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following
presents the total OPEB liability of the Plan, as well as what the Plan’s total OPEB liability would be if it were
calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than
the current rate:
Current Trend
1% Decrease
Rate
1% Increase
Total OPEB Liability
$
747,995 $
1,069,922 $
1,142,068

OPEB Expense and Deferred Outflows/Inflows of Resource Related to OPEB – For the year ended June
30, 2022, the Plan recognized OPEB expense of $137,138. At June 30, 2022, the Plan reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows
of Resources
$
132,936
444,266
$
577,202

Changes between expected and actual experience
Changes in assumptions or other inputs
Total

Deferred
Inflows
of Resources
$
1,265,790
168,306
$
1,434,096

The amounts reported as deferred outflows of resources and inflows of resources will be recognized in pension
expense as follows:
Year Ending
June 30
2023
2024
2025
2026
2027
Thereafter

$

81

Amount
(257,404)
(257,403)
(241,399)
(51,481)
(49,207)
-

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 13 – Fund Balance Classifications of the Governmental Funds
Major
Capital Project Funds

Fund Balances:
Nonspendable:
Advances
Prepaid items
Restricted for:
Capital projects
Court/public safety programs
Debt service
Highways and streets
Contract agreements
Parks & recreation programs
Transportation
Tourism
Special districts
Assigned to:
Capital replacement
Capital projects
Highways and streets
Management and policy
Debt Service
Unassigned:
Total fund balances

Streets
Special
Revenue

General
$

6,675,007
5,046,747
-

$

-

$

12,619,720
-

36,383,561
38,007,953
12,450,696
38,314
153,384,192
$ 251,986,470

Streets &
Traffic

-

254,795,698
-

30,709,602
-

-

$ 12,619,720

$ 254,795,698

Municipal
Facilities

Parks
$

Major
Debt Service Funds

$ 30,709,602

$

-

Debt Service

Special
Assessments

$

$

-

-

Other
Gov't
$

70,353

Total
$

6,675,007
5,117,100

2,823,990
-

4,807,404
-

90,035
-

2,070,535
89,033
64,546
1,691,020
1,335,550
424,748

288,329,290
2,070,535
4,897,439
12,619,720
89,033
64,546
1,691,020
1,335,550
424,748

(6,376,207)

5,369,399
-

-

(309,415)

36,383,561
38,007,953
12,450,696
38,314
5,369,399
146,698,570

$ (3,552,217)

$ 10,176,803

$ 5,436,370

$ 562,262,481

$

90,035

Note 14 – Capital Contributions
During the year ended June 30, 2022, the enterprise funds external capital contributions consisted of the
following:

Contributions from developers
Development fees
Total

$
$

Water
10,997,194
9,634,948
20,632,142

Wastewater
$
4,832,940
3,022,095
$
7,855,035

82

Environmental
Services
$
332,304
$
332,304

$
$

Total
16,162,438
12,657,043
28,819,481

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 15 – Interfund Transfers
As of June 30, 2022, interfund transfers were as follows:
Transfers In
Governmental Funds:
General
Streets Special Revenue
Streets and Traffic Capital Projects
Parks Capital Projects
Municipal Facilities Capital Projects
Debt Service
Other Governmental Funds
Total Governmental Funds

$

1,473,787
16,391,495
2,014,915
15,863,987
14,777,860
11,745,479
62,267,523

Enterprise Funds:
Water
Wastewater
Environmental Services
Total Enterprise Funds

224,884
1,024,632
12,990
1,262,506

Internal Service Funds:
Employee Benefit Self-Insurance

2,000,000
$

Total Transfers

65,530,029

Transfers Out
$

55,335,967
1,329,080
6,000
2,847,153
1,766,801
3,140,396
64,425,397

1,104,632
1,104,632

$

65,530,029

The interfund transfers generally fall within one of the following categories: 1) subsidy transfers primarily from
the General Fund to the Employee Benefit Self-Insurance Fund; 2) transfers to cover debt service payments
primarily from the General Fund to the Debt Service Fund; 3) transfers to fund capital project costs primarily
from the General Fund and Capital Projects Funds to other Capital Projects Funds; or 4) charge for reclaimed
water usage primarily from the Water Fund to the Wastewater Fund. There were no significant transfers during
fiscal year 2022 that were either non-routine in nature or inconsistent with the activities of the fund making the
transfer.
Note 16 – Individual Fund Disclosures
Individual funds with deficiencies in fund balance/net position at June 30, 2022, were as follows:
Governmental funds
Municipal Facilities Capital Projects
Grants
Other Capital Projects

$ 3,552,217
30,676
265,900

The deficiency in the Municipal Facilities Capital Projects Fund, a major governmental fund, is primarily due to
long-term loans that cover cash deficits for capital expenditures. Future system development fee revenue is
expected to eliminate the deficiency. The deficiency in the Grants Fund, a non-major governmental fund, is
primarily due to unavailable revenue related to various grants. Future grant revenue is expected to eliminate
the deficiency. The deficiency in the Other Capital Projects Fund, a non-major governmental fund, is due to the
timing of construction related payments and the transfers that fund the payments. The fund’s deficit is expected
to be eliminated in the subsequent fiscal year.

83

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 17 – Contingent Liabilities
Gilbert is a defendant in various lawsuits. Although the outcome of these lawsuits are not presently
determinable, in the opinion of Gilbert’s legal counsel, the resolution of these matters will not have a material
adverse effect on the financial condition of Gilbert.
Note 18 – Pledged Revenues
Gilbert has pledged future water system development fees revenue and future water and wastewater revenues,
net of specified operating expenses, to repay $626,405,000 in utility system revenue and revenue refunding
bonds issued since 2016. Proceeds from the utility system revenue bonds provided financing for water and
wastewater system improvements, and the proceeds from the 2016 revenue refunding bonds were used to
advance refund $75,326,000 of outstanding 2007 utility system revenue bonds. The bonds are payable from
water and wastewater system development fees and water and wastewater net revenues and are payable
through 2048. Principal and interest payments on the bonds are expected to require less than 32 percent of
revenue described above. The total principal and interest remaining to be paid on the bonds is $904,753,999.
Principal and interest paid for the current year was $13,429,813. Total water and wastewater system SDF
revenue was $12,657,043 and water and wastewater net revenues were $30,883,190.
Gilbert has pledged future excise taxes and state-shared revenues to repay $49,525,000 in public facilities
municipal property corporation (MPC) revenue bonds issued since 2017, $43,075,000 in public facilities MPC
revenue refunding bonds issued in 2017, and $6,450,000 in public facilities MPC revenue bonds issued in
2017. Proceeds from the bonds provided financing of a fire and rescue station. Proceeds from the 2017
refunding bonds were used to advance refund $56,845,000 of outstanding 2009 public facilities MPC revenue
bonds. The bonds are payable through 2027. In addition, Gilbert has pledged future excise taxes and stateshared revenues to repay $36,980,000 in revenue obligations issued in 2015. Proceeds from the obligations
provided financing to design and construct a four-story building for educational purposes. Principal and interest
payments on the bonds and obligations are expected to require less than 4 percent of excise taxes and stateshared revenues. The total principal and interest remaining to be paid on the bonds and obligations is
$88,790,765. Principal and interest paid for the current year was $9,270,356, and the total excise taxes and
state-shared revenues were $245,000,143.
Note 19 – Investment in Joint Venture
In fiscal year 2021, Gilbert, in joint effort with Mesa and Queen Creek, completed improvements as part of the
Phase III Expansion for the Greenfield Water Reclamation Plant (GWRP) located on the northwest corner of
Greenfield and Queen Creek Roads. This project included process improvements and upgrades to increase
the plant’s capacity from 16 million gallons per day (mgd) to 30 mgd, as well as maintenance and
improvements to the existing infrastructure of the plant. Mesa, Gilbert and Queen Creek participate in
ownership of the plant and are charged for operating expenses based on gallons of flow. Gilbert’s investment
in joint venture is reflected as a separate line item in the proprietary funds financial statements. Separate
financial statements for the joint venture are not prepared.

84

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Total investment (net of depreciation) as of June 30, 2022, was:
Mesa's share
Gilbert's share
Queen Creek's share
Total

$ 154,377,270
101,984,765
29,303,635
$ 285,665,670

Gilbert and the City of Chandler entered into an agreement to build a joint water treatment plant to provide each
with 24 mgd of water. The plant was completed in two phases with each phase providing 12 mgd to both
Gilbert and Chandler. Phase I was completed in fiscal year 2009 and Phase II in fiscal year 2018. Gilbert’s
investment in joint venture is reflected as a separate line item in the proprietary funds financial statements.
Separate financial statements for the joint venture are not prepared.
Total investment (net of depreciation) as of June 30, 2022, was:
Gilbert's share
Chandler's share
Total

$

75,878,049
69,369,363
$ 145,247,412

In August 2008, Gilbert entered into an Intergovernmental Agreement with the Cities of Mesa and Apache
Junction, Superstition Fire & Medical (F&M), and the Town of Queen Creek (the Parties) to plan, design,
construct, operate, maintain and finance the TOPAZ Regional Wireless Cooperative Network (Trunked Open
Arizona Network – 700/800 MHz Network procured and built by the City of Mesa). On May 1, 2012 and
October 26, 2015, Rio Verde Fire District (FD) and Fort McDowell Yavapai Nation (Fort McDowell),
respectively, joined TOPAZ. The City of Mesa acts as the lead agency and is responsible for the planning,
budgeting, construction, operation and maintenance of the network, in addition to providing all management
personnel and financing arrangements. The Parties participate in ownership of the network and are charged
for operating and capital expenses based on a six-month rolling average of airtime. Gilbert’s investment in joint
venture is reflected within the governmental activities in the government-wide statement of net position.
Separate financial statements are not prepared.
Total investment (net of depreciation) as of June 30, 2022, was:
Mesa's share
Gilbert's share
Apache Junction's share
Superstition F&M's share
Queen Creek's share
Fort McDowell's share
Rio Verde FD's share
Total

$

$

85

6,162,821
1,774,986
547,226
162,073
107,298
51,148
12,135
8,817,687

Table of Contents
TOWN OF GILBERT, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2022
Note 20 – Tax Abatements
Gilbert has made a commitment as part of our economic development program to reimburse certain public
improvement costs through transaction privilege taxes generated out of the respective development area.
Additional information regarding this agreement may only be disclosed when a sufficient number of participants
can be aggregated together. Gilbert has an insufficient number of participants within the development area to
authorize such disclosure, as detailed information on such commitments is prohibited from disclosure under
Arizona Revised Statute 42-2002 Disclosure of Confidential Information Prohibited.

86

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REQUIRED SUPPLEMENTARY INFORMATION

87

Table of Contents

88

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TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of the Proportionate Share of the Net Pension Liability
Arizona State Retirement System
Fiscal Year

Proportion of the net pension liability
Proportionate share of the net pension liability
Covered payroll (1)
Proportionate share of the net pension liability
as a percentage of covered payroll
Plan fiduciary net position as a percentage of the
total pension liability

2022

2021

2020

2019

2018

0.56%
$ 73,124,257
62,344,498

0.52%
$ 90,610,769
55,508,515

0.52%
$ 75,693,697
52,965,805

0.49%
$ 69,364,217
49,511,839

0.49%
$ 76,832,504
48,187,902

117%

163%

143%

140%

159%

78.58%

69.33%

73.24%

73.40%

69.92%

Fiscal Year

Proportion of the net pension liability
Proportionate share of the net pension liability
Covered payroll (1)
Proportionate share of the net pension liability
as a percentage of covered payroll
Plan fiduciary net position as a percentage of the
total pension liability

2017

2016

2015

2014
through
2013

0.49%
$ 78,813,297
45,764,166

0.49%
$ 75,695,863
43,765,044

0.47%
$ 69,412,268
42,295,765

Information
not
available (2)

172%

172%

164%

67.06%

68.35%

69.49%

(1) The covered payroll amount will be as of the measurement date of the net pension liability. For fiscal year 2022, the
measurement date of the net pension liability is June 30, 2021.
(2) The pension schedules in this required supplementary information are intended to show information for ten years.
Additional years’ information will be displayed as it becomes available.

89

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of Changes in the Net Pension Liability and Related Ratios
Public Safety Personnel Retirement System – Police
Fiscal Year

2022
Total pension liability:
Service cost
Interest on the total pension liability
Changes in benefit terms
Differences between expected and actual experience
in the measurement of the total pension liability
Changes in assumptions or other inputs
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)

$

4,166,829
11,233,464
-

$

4,173,615
10,325,605
-

2019

$

4,056,282
9,457,916
-

3,349,250
-

1,313,900
3,858,110

847,849
-

(7,168,987)
9,097,745
165,261,046
174,358,791

(6,409,473)
12,340,070
152,920,976
165,261,046

(4,223,688)
15,447,542
137,473,434
152,920,976

(5,340,286)
9,021,761
128,451,673
137,473,434

19,610,018
1,581,158
36,645,254

25,390,957
1,845,450
1,512,207

7,682,173
1,487,218
5,637,557

7,551,083
1,973,907
6,242,434

(7,168,987)
(172,063)
50,495,380
124,456,116
174,951,496

(6,409,473)
(123,284)
22,215,857
103,632,748
(1,392,489)
124,456,116

(4,223,688)
(98,934)
10,484,326
93,189,007
(40,585)
103,632,748

(5,340,286)
(95,708)
106,036
10,437,466
82,751,541
93,189,007

(592,705)

$ 40,804,930

$ 49,288,228

$ 44,284,427

100.34%

75.31%

67.77%

67.79%

$ 17,797,726

$ 17,973,970

$ 20,212,530

$ 18,572,542

-3.33%

227.02%

243.85%

238.44%

$

Plan fiduciary net position as a percentage of the
total pension liability
Covered payroll (1)

$

2020

97,134
-

Plan fiduciary net position:
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
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 (b)
Net pension liability / (asset) - ending (a) - (b)

4,070,093
12,099,505
-

2021

Gilbert's net pension liability / (asset) as a percentage
of covered payroll

(1) The covered payroll amount will be as of the measurement date of the net pension liability. For fiscal year 2022, the
measurement date of the net pension liability is June 30, 2021.
(2) The pension schedules in this required supplementary information are intended to show information for ten years.
Additional years’ information will be displayed as it becomes available.

90

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TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022

Fiscal Year

2018

$

4,361,408
8,535,995
1,136,619

2017

$

3,466,239
7,222,969
9,149,421

2016

$

3,570,214
6,604,564
-

2015

$

2014
through
2013

Information
3,293,404
not
5,414,469 available (2)
605,849

928,575
3,680,906

547,040
4,549,861

713,111
-

2,479,128
5,473,070

(3,648,774)
14,994,729
113,456,944
128,451,673

(3,515,621)
21,419,909
92,037,035
113,456,944

(2,400,631)
8,487,258
83,549,777
92,037,035

(2,087,138)
15,178,782
68,370,995
83,549,777

12,682,256
2,271,326
8,763,809

4,426,923
2,243,118
365,916

3,280,061
2,107,439
2,037,534

3,103,356
2,088,159
6,306,779

(3,648,774)
(77,945)
153,768
20,144,440
62,607,101
82,751,541

(3,515,621)
(53,053)
113,260
3,580,543
59,026,558
62,607,101

(2,400,631)
(50,099)
75,447
5,049,751
53,976,807
59,026,558

(2,087,138)
(50,793)
49,298
9,409,661
44,567,146
53,976,807

$ 45,700,132

$ 50,849,843

$ 33,010,477

$ 29,572,970

64.42%

55.18%

64.13%

64.60%

$ 18,694,661

$ 19,247,567

$ 19,071,843

$ 18,990,156

244.46%

264.19%

173.08%

155.73%

91

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of Changes in the Net Pension Liability and Related Ratios
Public Safety Personnel Retirement System – Fire
Fiscal Year

2022
Total pension liability:
Service cost
Interest on the total pension liability
Changes in benefit terms
Differences between expected and actual experience
in the measurement of the total pension liability
Changes in assumptions or other inputs
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)

$

3,696,610
7,536,882
-

$

3,690,094
7,024,670
-

2019

$

3,661,929
6,428,184
-

3,919,493
-

(1,850,677)
1,934,990

(1,694,618)
-

(2,791,898)
12,427,155
113,443,930
125,871,085

(2,514,806)
12,638,179
100,805,751
113,443,930

(2,462,421)
8,336,656
92,469,095
100,805,751

(1,925,561)
6,469,934
85,999,161
92,469,095

5,838,307
1,341,353
26,646,654

11,097,287
1,297,110
1,130,134

3,866,247
1,241,407
4,444,022

5,035,275
1,365,916
4,953,004

(2,791,898)
(125,013)
30,909,403
93,028,870
123,938,273

(2,514,806)
(92,147)
10,917,578
82,657,955
(546,663)
93,028,870

(2,462,421)
(78,196)
7,011,059
75,671,432
(24,536)
82,657,955

(1,925,561)
(76,084)
7,224
9,359,774
66,311,658
75,671,432

1,932,812

$ 20,415,060

$ 18,147,796

$ 16,797,663

98.46%

82.00%

82.00%

81.83%

$ 16,301,459

$ 15,790,177

$ 16,590,770

$ 16,176,854

11.86%

129.29%

109.38%

103.84%

$

Plan fiduciary net position as a percentage of the
total pension liability
Covered payroll (1)

$

2020

3,168,376
-

Plan fiduciary net position:
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
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 (b)
Net pension liability - ending (a) - (b)

3,607,805
8,442,872
-

2021

Gilbert's net pension liability as a percentage
of covered payroll

(1) The covered payroll amount will be as of the measurement date of the net pension liability. For fiscal year 2022, the
measurement date of the net pension liability is June 30, 2021.
(2) The pension schedules in this required supplementary information are intended to show information for ten years.
Additional years’ information will be displayed as it becomes available.

92

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022

Fiscal Year

2018

$

3,652,130
5,586,910
434,841

2017

$

2,728,554
4,550,994
7,610,545

2016

$

2,785,128
4,138,400
-

2015

$

Information
2,545,607
not
3,408,433 available (2)
(131,651)

3,761,967
444,609

(1,091,858)
3,069,903

(1,235,512)
-

2,247,902
1,333,403

(1,094,738)
12,785,719
73,213,442
85,999,161

(529,722)
16,338,416
56,875,026
73,213,442

(277,805)
5,410,211
51,464,815
56,875,026

(171,217)
9,232,477
42,232,338
51,464,815

5,192,069
1,860,471
6,959,055

3,183,837
1,792,809
300,260

1,845,382
1,903,578
1,653,304

1,954,145
1,667,772
5,045,090

(1,094,738)
(61,976)
636
12,855,517
53,456,141
66,311,658

(529,722)
(43,606)
96,335
4,799,913
48,656,228
53,456,141

(277,805)
(40,728)
(229,513)
4,854,218
43,802,010
48,656,228

(171,217)
(40,631)
8,455,159
35,346,851
43,802,010

$ 19,687,503

$ 19,757,301

77.11%

73.01%

85.55%

85.11%

$ 16,132,031

$ 15,444,728

$ 15,274,115

$ 15,508,151

122.04%

127.92%

53.81%

49.41%

$

8,218,798

$

2014
through
2013

7,662,805

93

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of Pension Contributions
Arizona State Retirement System

Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered
payroll

Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered
payroll

2022

2021

Fiscal Year
2020

$ 7,874,805

$ 7,263,134

$ 6,355,725

$

7,874,805
-

$

7,263,134
-

$

6,355,725
-

2019

2018

$ 5,921,577

$ 5,338,739

$

5,921,577
-

$

5,338,739
-

$ 65,568,734

$ 62,344,498

$ 55,508,515

$ 52,965,805

$ 49,511,839

12.01%

11.65%

11.45%

11.18%

10.78%

2017

2016

Fiscal Year
2015

2014

2013

$ 5,187,460

$ 5,278,569

$ 5,137,457

$ 4,763,978

$ 4,162,425

$

5,187,460
-

$

5,278,569
-

$

5,137,457
-

$

4,763,978
-

$

4,162,425
-

$ 48,187,902

$ 45,764,166

$ 43,765,044

$ 42,295,765

$ 38,356,312

10.77%

11.53%

11.74%

11.26%

10.85%

94

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of Pension Contributions
Public Safety Retirement System – Police
2022
Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered
payroll

Covered payroll
Contributions as a percentage of covered
payroll

Fiscal Year
2020

5,652,558

$

2019

2018

5,649,219

$ 6,410,919

$ 6,170,252

$

4,446,932

$

$

4,446,932
-

18,652,558
$ (13,000,000)

20,376,341
$ (14,727,122)

11,245,894
$ (4,834,975)

7,330,436
$ (1,160,184)

$ 18,498,054

$ 17,797,726

$ 17,973,970

$ 20,212,530

$ 18,572,542

24.04%

104.80%

113.37%

55.64%

39.47%

2017
Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)

2021

$

2016

Fiscal Year
2015

2014

2013
$ 2,930,117

4,501,937

$

4,021,770

$

3,414,607

$ 3,231,755

12,700,837
$ (8,198,900)

$

4,449,337
(427,567)

$

3,414,607
-

$

$ 18,694,661

$ 19,247,567

$ 19,071,843

$ 18,990,156

$ 17,477,557

67.94%

23.12%

17.90%

17.02%

16.77%

3,231,755
-

$

2,930,117
-

Public Safety Retirement System – Fire
2022

2021

Fiscal Year
2020

3,715,102

$

2019

2018

3,495,945

$ 4,009,743

$ 4,644,867

Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)

$

3,513,087

$

$

3,513,087
-

5,715,102
$ (2,000,000)

6,652,405
$ (3,156,460)

7,556,014
$ (3,546,271)

$

Covered payroll
Contributions as a percentage of covered
payroll

$ 16,768,912

$ 16,301,459

$ 15,790,177

$ 16,590,770

$ 16,176,854

20.95%

35.06%

42.13%

45.54%

31.50%

2017
Actuarially determined contribution
Contributions in related to the actuarially
determined contributions
Contribution deficiency (excess)

$

Covered payroll
Contributions as a percentage of covered
payroll

2016

Fiscal Year
2015

5,096,285
(451,418)

2014

2013
$ 1,793,907

3,266,367

$

2,241,688

$

1,982,159

$ 2,037,266

5,307,483
$ (2,041,116)

$

3,088,477
(846,789)

$

1,982,159
-

$

$ 16,132,031

$ 15,444,728

$ 15,274,115

$ 15,508,151

$ 13,954,822

32.90%

20.00%

12.98%

13.14%

12.86%

95

2,037,266
-

$

1,793,907
-

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios
Town of Gilbert Defined Benefit Plan
Fiscal Year

2022

2021

2020

2019

2018

Total OPEB liability:
Service cost
Interest on the total OPEB liability
Differences between expected and actual experience
in the measurement of the total OPEB liability
Changes in assumptions/inputs
Benefit payments, including refunds of employee
contributions
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending

(249,173)
(46,068)

181,231
(194,875)

24,230
74,733

(1,604,373)
159,488

(1,296,953)
1,184,917

270,009
99,302
970,620
$ 1,069,922

$

97,744
195,383
775,237
970,620

176,849
362,861
412,376
775,237

$

118,124
(1,184,917)
1,597,293
412,376

96,758
127,475
1,469,818
$ 1,597,293

Covered-employee payroll (1)

$ 92,479,026

$ 89,785,462

$ 83,544,308

$

81,110,979

$72,406,115

1.2%

1.1%

0.9%

0.5%

2.2%

Gilbert's total OPEB liability as a percentage
of covered payroll

$

101,360
23,174

$

88,914
22,369

$

$

69,208
17,841

$

87,269
54,575

$

2017
through
2013

Information
84,727
not
58,026 available (2)

(1) The covered-employee payroll amount will be as of the measurement date of the total OPEB liability. For
fiscal year 2022, the measurement date of the total OPEB liability is June 30, 2022.
(2) The OPEB schedule in this required supplementary information is intended to show information for ten years.
Additional years’ information will be displayed as it becomes available.
(3) No assets are accumulated in a trust that meets the criteria of a trust as defined in GASB Statement No. 75,
Accounting and Reporting for Postemployment Benefits Other than Pensions, to pay for the related benefits
of this plan.

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Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Notes to Pension Plan Schedules
Note 1 – Actuarially Determined Contribution Rates
Arizona State Retirement System (ASRS)
The actuarial assumptions used in the June 30, 2020 valuation for ASRS were based on the results of an actuarial
five-year period ended June 30, 2020. The major changes in assumptions were decreasing the discount rate from
7.5% to 7.0% and changing the projected salary increases from 2.7%-7.2% to 2.9%-8.4%. The ASRS Board adopted
the experience study recommended changes which were applied to the June 30, 2020 actuarial valuation.
Public Safety Personnel Retirement System (PSPRS)
Actuarial determined contribution rates for the Public Safety Personnel Retirement System are calculated as of June
30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods and
assumptions used to establish the contribution requirements are as follows:
Actuarial cost method
Amortization method

Remaining amortization period as
of the 2017 actuarial valuation
Asset valuation method

Actuarial assumptions:
Investment rate of return

Projected salary increases

Wage growth

Retirement age
Mortality

Entry age normal
PSPRS members with initial membership date before July 1, 2017:
Level percent-of-pay, closed
PSPRS members with initial membership on or after July 1, 2017:
Level dollar closed
18 years
PSPRS members with initial membership date before July 1, 2017:
7-year smoothed market value; 80%/120% market corridor
PSPRS members with initial membership on or after July 1, 2017:
5-year smoothed market value; 80%/120% market corridor
PSPRS members with initial membership date before July 1, 2017: In
the 2019 actuarial valuation, the investment rate of return was
decreased from 7.4% to 7.3%. In the 2017 actuarial valuation, the
investment rate of return was decreased from 7.5% to 7.4%. In the
2016 actuarial valuation, the investment rate of return was decreased
from 7.85% to 7.5%. In the 2013 actuarial valuation, the investment
rate of return was decreased from 8.0% to 7.85%.
PSPRS members with initial membership on or after July 1, 2017:
7.0%.
In the 2017 actuarial valuation, projected salary increased were
decreased from 4.0%-8.0% to 3.5%-7.5%. In the 2014 actuarial
valuation, projected salary increases were decreased from 4.5%8.5% to 4.0%-8.0%. In the 2013 actuarial valuation, projected salary
increases were decreased from 5.0%-9.0% to 4.5%-8.5%.
In the 2017 actuarial valuation, wage growth was decreased from
4.0% to 3.5%. In the 2014 actuarial valuation, wage growth was
decreased from 4.5% to 4.0%. In the 2013 actuarial valuation, wage
growth was decreased from 5.0% to 4.5%.
Experience-based table of rates that is specific to the type of eligibility
condition. Last updated for the 2012 valuation pursuant to the
experience study of the period July 1, 2006 – June 30, 2011.
In the 2019 actuarial valuation, changed to PubS-2010 tables. In the
2017 actuarial valuation, changed to RP-2014 tables, with 75% of
MP-2016 fully generational projection scales. RP-2000 mortality
table (adjusted by 105% for both males and females).

97

Table of Contents
TOWN OF GILBERT, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2022
Note 2 – Factors That Affect Trends
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension
benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract
because those provisions apply to individuals who were members as of the law’s effective date. As a result, the
PSPRS and EORP 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 and
EORP also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension
liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date
and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date.
These changes also increased the PSPRS required pension contributions beginning in fiscal year 2016 for members
who were retired as of the law’s effective date. These changes increased the PSPRS required contributions beginning
in fiscal year 2019 for members who retired or will retire after the law’s effective date.

98

Table of Contents

NONMAJOR FUNDS
OTHER GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for revenues and expenditures from specific taxes or
other earmarked sources. Such funds are usually required by statute or ordinance to finance
particular functions or activities.
Grants – accounts for miscellaneous grants received from federal, state and local governments
that require segregation of revenues and expenditures.
Special Districts – accounts for taxes received from and expenditures of the street light
maintenance improvement districts and parkway maintenance improvement districts.
Other Special Revenue – accounts for revenues received from various agencies and sources,
including seized funds from law enforcement agencies that are required to be used for specific
purposes.

Capital Projects Funds
Capital Projects Funds are established to account for the acquisition and construction of major
capital facilities other than those financed by proprietary funds.
Other Capital Projects – accounts for the design and construction of redevelopment
infrastructure and related funding.

99

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TOWN OF GILBERT, ARIZONA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Revenue

Special
Districts

Grants
Assets
Pooled cash and investments
Receivables, net
Taxes
Accrued interest
Accounts
Due from other governments
Prepaid items
Total assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total liabilities

$

24,009,132

$

1,054,072
25,063,204

$

137,500
10,268
747,626
24,159,871
25,055,265

$

441,863

$

25,561
467,424

$

32,363
10,313
42,676

Capital Projects
Total Nonmajor
Governmental
Funds

Other Special
Revenue

Other Capital
Projects

$

4,798,414

$

672,495

$

122,393
7,996
80
2,161,270
70,353
7,160,506

$

672,495

$

82,588
85,948
56,098
1,627,674
1,852,308

$

938,395
938,395

$

29,921,904

$

147,954
7,996
80
3,215,342
70,353
33,363,629

$

1,190,846
106,529
803,724
25,787,545
27,888,644

Deferred inflows of resources
Unavailable revenue - grants
Total deferred inflows of resources

38,615
38,615

-

-

-

38,615
38,615

Fund balances (deficits)
Nonspendable
Restricted
Unassigned
Total fund balances (deficits)

$

12,839
(43,515)
(30,676)

$

424,748
424,748

$

70,353
5,237,845
5,308,198

$

(265,900)
(265,900)

$

70,353
5,675,432
(309,415)
5,436,370

Total liabilities, deferred inflows, and
fund balances (deficits)

$

25,063,204

$

467,424

$

7,160,506

$

672,495

$

33,363,629

100

Table of Contents

TOWN OF GILBERT, ARIZONA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Capital Projects

Special Revenue

Special
Districts

Grants
Revenues
Taxes
Sales taxes
Property taxes
Charges for services
Intergovernmental
Fines and forfeitures
Gifts and donations
Interest earnings
Net change in fair value of investments
Miscellaneous
Total revenues

$

Expenditures
Current
General government
Management and policy
Court
Public safety
Police
Fire
Highways and streets
Parks and recreation
Non departmental
Capital outlay
Total expenditures

5,195,423
1,743
5,197,166

$

2,722,155
2,722,155

Other Special
Revenue

Other Capital
Projects

$

$

1,477,056
249,200
1,316,985
423,047
79,968
34,532
(139,511)
3,441,277

Total
Nonmajor
Governmental
Funds

-

$

1,477,056
2,722,155
249,200
6,512,408
423,047
79,968
34,532
(139,511)
1,743
11,360,598

1,293,520
-

-

125,778
251,291

-

1,419,298
251,291

301,844
1,803
39,456
282,839
1,919,462

1,884,168
880,933
2,765,101

408,951
9,812
13,326
49,885
859,043

161,782
11,774,597
11,936,379

710,795
11,615
2,045,950
933,715
49,885
12,057,436
17,479,985

Excess (deficiency) of revenues over

3,277,704

(42,946)

2,582,234

(11,936,379)

(6,119,387)

Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)

(3,127,578)
(3,127,578)

-

75,000
(12,818)
62,182

11,670,479
11,670,479

11,745,479
(3,140,396)
8,605,083

150,126
(180,802)
(30,676)

(42,946)
467,694
424,748

2,644,416
2,663,782
5,308,198

(265,900)
(265,900)

2,485,696
2,950,674
5,436,370

Net change in fund balances
Fund balances - beginning
Fund balances - ending

$

$

101

$

$

$

Table of Contents

102

Table of Contents

BUDGETARY COMPARISON SCHEDULES

103

Table of Contents

TOWN OF GILBERT, ARIZONA
Streets and Traffic Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts
Original
Revenues
Intergovernmental
System development fees
Interest
Total revenues

$

30,665,000
8,000,000
70,000
38,735,000

Non-GAAP
Actual

Final
$

30,665,000
8,000,000
70,000
38,735,000

$

Variance with
Final Budget Positive
(Negative)

14,946,140
5,086,479
1,068,848
21,101,467

$ (15,718,860)
(2,913,521)
998,848
(17,633,533)

Expenditures
Current
General government
Highways and streets
Bond issuance costs
Capital outlay
Contingency
Total expenditures

248,130
88,411,890
88,660,020

147,976
675,000
81,369,925
15,406,479
97,599,380

85,909
661,938
25,828,796
26,576,643

62,067
13,062
55,541,129
15,406,479
71,022,737

Excess (deficiency) of revenues over expenditures

(49,925,020)

(58,864,380)

(5,475,176)

53,389,204

Other financing source (uses)
Transfers in
Transfers out
General obligation bonds issued
Premium on bonds issued
Total other financing sources (uses)

24,054,350
(3,735,280)
20,319,070

33,057,280
(3,735,280)
29,322,000

16,391,495
(6,000)
188,910,000
12,917,121
218,212,616

(16,665,785)
3,729,280
188,910,000
12,917,121
188,890,616

$ (29,605,950)

$ (29,542,380)

212,737,440

$ 242,279,820

Net change in fund balances

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

104

(7,373,494)
$ 205,363,946

Table of Contents

TOWN OF GILBERT, ARIZONA
Parks Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts
Original
Revenues
System development fees
Interest
Total revenues

$

10,000,000
65,000
10,065,000

Non-GAAP
Actual

Final
$

10,000,000
65,000
10,065,000

$

8,611,147
240,629
8,851,776

Variance with
Final Budget Positive
(Negative)
$

(1,388,853)
175,629
(1,213,224)

Expenditures
Current
General government
Parks and recreation
Capital outlay
Contingency
Total expenditures

1,909,920
10,733,640
12,643,560

1,909,148
9,385,139
1,349,273
12,643,560

899,684
1,503,754
2,403,438

1,009,464
7,881,385
1,349,273
10,240,122

Excess (deficiency) of revenues over expenditures

(2,578,560)

(2,578,560)

6,448,338

9,026,898

Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)

7,936,540
(2,848,580)
5,087,960

7,936,540
(2,848,580)
5,087,960

2,014,915
(2,847,153)
(832,238)

(5,921,625)
1,427
(5,920,198)

2,509,400

5,616,100

Net change in fund balances

$

2,509,400

$

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

105

(1,019,410)
$

4,596,690

$

3,106,700

Table of Contents

TOWN OF GILBERT, ARIZONA
Municipal Facilities Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Non-GAAP
Actual

Variance with
Final Budget Positive
(Negative)

$

$

Budgeted Amounts
Original
Revenues
System development fees
Interest
Total revenues

$

7,500,000
5,000
7,505,000

Final
$

7,500,000
5,000
7,505,000

5,572,093
19,770
5,591,863

(1,927,907)
14,770
(1,913,137)

Expenditures
Current
Public safety
Police
General government
Parks and recreation
Non departmental
Capital outlay
Contingency
Total expenditures

239,560

213,056

165,646

47,410

288,680
260,700
42,963,250
43,752,190

203,044
260,700
39,542,289
6,668,042
46,887,131

173,156
1,333
15,666,998
16,007,133

29,888
259,367
23,875,291
6,668,042
30,879,998

Excess (deficiency) of revenues over expenditures

(36,247,190)

(39,382,131)

(10,415,270)

28,966,861

Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)

41,527,320
(2,014,800)
39,512,520

42,862,990
(2,014,800)
40,848,190

15,863,987
(1,766,801)
14,097,186

(26,999,003)
247,999
(26,751,004)

1,466,059

3,681,916

Net change in fund balances

$

3,265,330

$

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

106

(89,332)
$

3,592,584

$

2,215,857

Table of Contents

TOWN OF GILBERT, ARIZONA
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts

Variance with
Final Budget
Positive
(Negative)

Original

Final

Non-GAAP
Actual

$ 27,750,000
75,000
27,825,000

$ 27,750,000
75,000
27,825,000

$ 27,633,507
114,085
27,747,592

Expenditures
Debt service
Principal
Interest
Fiscal and other charges
Total expenditures

28,335,000
8,118,740
25,000
36,478,740

28,335,000
8,118,740
25,000
36,478,740

28,335,000
8,118,694
7,950
36,461,644

46
17,050
17,096

Excess (deficiency) of revenues over expenditures

(8,653,740)

(8,653,740)

(8,714,052)

(60,312)

Other financing sources (uses)
Transfers in
Total other financing sources (uses)

14,780,400
14,780,400

14,780,400
14,780,400

14,777,860
14,777,860

(2,540)
(2,540)

6,126,660

6,063,808

Revenues
Property taxes
Interest earnings
Total revenues

Net change in fund balances

$

6,126,660

$

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

107

(303,147)
$

5,760,661

$

$

(116,493)
39,085
(77,408)

(62,852)

Table of Contents

TOWN OF GILBERT, ARIZONA
Special Assessments Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Non-GAAP
Actual

Variance with
Final Budget
Positive
(Negative)

$

$

Budgeted Amounts
Original
Revenues
Special assessments
Charges for services
Interest
Total revenues

$

Expenditures
Debt service
Principal
Interest
Fiscal and other charges
Total expenditures

4,223,350
4,223,350

$

4,223,350
4,223,350

1,351,412
14,698
2,515
1,368,625

(2,871,938)
14,698
2,515
(2,854,725)

4,000,000
193,350
30,000
4,223,350

4,000,000
193,350
30,000
4,223,350

1,160,000
193,350
7,094
1,360,444

2,840,000
22,906
2,862,906

-

-

8,181

8,181

-

8,181

Excess (deficiency) of revenues over expenditures
Net change in fund balances

Final

$

-

$

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

108

(2,964)
$

5,217

$

8,181

Table of Contents

TOWN OF GILBERT, ARIZONA
Grants Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts
Original
Revenues
Intergovernmental
Miscellaneous
Total revenues

$

Final

8,285,640
8,285,640

Expenditures
Current
General government
Management and policy
Public safety
Police
Fire
Parks and recreation
Non departmental
Capital outlay
Contingency
Total expenditures

$

8,285,640
8,285,640

Actual
$

5,195,423
1,743
5,197,166

Variance with
Final Budget
Positive
(Negative)
$

(3,090,217)
1,743
(3,088,474)

1,492,650

2,782,682

1,293,520

1,489,162

235,110
2,500
170,000
5,000,000
6,900,260

450,863
39,460
2,500
240,000
4,513,025
8,028,530

301,844
1,803
39,456
282,839
1,919,462

149,019
(1,803)
4
2,500
(42,839)
4,513,025
6,109,068

Excess (deficiency) of revenues over expenditures

1,385,380

257,110

3,277,704

3,020,594

Other financing sources (uses)
Transfers out
Total other financing sources (uses)

(1,385,380)
(1,385,380)

(3,574,380)
(3,574,380)

(3,127,578)
(3,127,578)

446,802
446,802

Net change in fund balances

$

109

-

$

(3,317,270)

$

150,126

$

3,467,396

Table of Contents

TOWN OF GILBERT, ARIZONA
Special Districts Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual - Budgetary Basis
For the Year Ended June 30, 2022

Budgeted Amounts

Variance with
Final Budget
Positive
(Negative)

Original

Final

Actual

$ 2,722,180
2,722,180

$ 2,722,180
2,722,180

$ 2,722,155
2,722,155

Expenditures
Current
General government
Highways and streets
Parks and recreation
Non departmental
Total expenditures

1,893,800
1,025,660
10,000
2,929,460

1,893,800
1,030,660
10,000
2,934,460

1,884,168
880,933
2,765,101

9,632
149,727
10,000
169,359

Excess (deficiency) of revenues over expenditures

(207,280)

(212,280)

(42,946)

169,334

Revenues
Property taxes
Total revenues

Net change in fund balances

$

(207,280)

110

$

(212,280)

$

(42,946)

$

$

(25)
(25)

169,334

Table of Contents

TOWN OF GILBERT, ARIZONA
Other Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual - Budgetary Basis
For the Year Ended June 30, 2022

Non-GAAP
Actual

Variance with
Final Budget
Positive
(Negative)

$

$

Budgeted Amounts
Original
Revenues
Sales taxes
Charges for services
Intergovernmental
Fines and forfeitures
Gifts and donations
Interest
Total revenues

$

135,000
696,000
474,000
98,890
-

Final
$

135,000
696,000
474,000
98,890
-

1,477,056
249,200
1,316,985
423,047
79,968
34,532

1,477,056
114,200
620,985
(50,953)
(18,922)
34,532

1,403,890

1,403,890

3,580,788

2,176,898

207,650
534,570

217,650
534,570

125,778
251,291

91,872
283,279

Expenditures
Current
General government
Management and policy
Court
Public safety
Police
Fire
Parks and recreation
Transportation
Non departmental
Total expenditures

367,460
64,560
20,000
860,000
53,890

526,813
64,560
25,000
860,000
53,890

408,951
9,812
13,326
49,885

117,862
54,748
11,674
860,000
4,005

2,108,130

2,282,483

859,043

1,423,440

Excess (deficiency) of revenues over expenditures

(704,240)

(878,593)

2,721,745

3,600,338

Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)

100,000
(15,000)

100,000
(15,000)

75,000
(12,818)

(25,000)
2,182

85,000

85,000

62,182

(22,818)

(793,593)

2,783,927

Net change in fund balances

$

(619,240)

$

Explanation of difference between budgetary change in fund balance at June 30, 2022,
and GAAP change in fund balance:
Changes in fair value of investments are recognized as revenue for GAAP
purposes but are not recognized as revenue on the budget basis
Change in fund balance as reported on the statement of revenues, expenses
and changes in fund balance

111

(139,511)
$

2,644,416

$

3,577,520

Table of Contents

TOWN OF GILBERT, ARIZONA
Other Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual - Budgetary Basis
For the Year Ended June 30, 2022
Variance with
Final Budget
Positive
(Negative)

Budgeted Amounts
Original
Revenues
Total revenues

$

Expenditures
Current
General government
Highways and streets
Capital outlay
Contingency
Total expenditures

Final
-

$

Actual
-

$

-

$

-

154,160
7,555,380
-

482,990
18,243,356
1,030,116

161,782
11,774,597
-

321,208
6,468,759
1,030,116

7,709,540

19,756,462

11,936,379

7,820,083

Excess (deficiency) of revenues over expenditures

7,709,540

19,756,462

11,936,379

7,820,083

Other financing sources (uses)
Transfers in
Total other financing sources (uses)

7,709,540

7,709,540

11,670,479

3,960,939

7,709,540

7,709,540

11,670,479

3,960,939

-

$ (12,046,922)

(265,900)

$ 11,781,022

Net change in fund balances

$

112

$

Table of Contents

INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one
department to other departments of the government, on a cost reimbursement basis.
Equipment Maintenance – to account for the revenues and expenses from the maintenance of
Gilbert's motorized equipment.
Employee Benefit Self-Insurance – to account for and finance Gilbert’s uninsured risks of loss
for medical, dental, and workers’ compensation claims.

113

Table of Contents

TOWN OF GILBERT, ARIZONA
Combining Statement of Net Position
Internal Service Funds
June 30, 2022

Equipment
Maintenance

Employee
Benefit SelfInsurance

Total Internal
Service Funds

$

1,672,512

$ 14,313,652

$ 15,986,164

2,890
2,315
1,029,934
2,707,651

22,574
1,361,148
26,264
50,000
15,773,638

25,464
1,361,148
28,579
50,000
1,029,934
18,481,289

7,325
333,163
340,488
3,048,139

15,773,638

7,325
333,163
340,488
18,821,777

Deferred outflows of resources
Pensions and other post-employment benefits
Total deferred outflows of resources

551,235
551,235

-

551,235
551,235

Liabilties
Current liabilities
Accounts payable
Accrued liabilities
Advances from other funds
Current portion of accrued compensated absences
Claims payable
Total current liabilities

671,327
145,875
79,998
897,200

135,233
10,491
1,300,000
7,369,518
8,815,242

806,560
156,366
1,300,000
79,998
7,369,518
9,712,442

112,797
17,426
1,841,472
1,971,695
2,868,895

8,815,242

112,797
17,426
1,841,472
1,971,695
11,684,137

Deferred inflows of resources
Pensions and other post-employment benefits
Total deferred inflows of resources

606,800
606,800

-

606,800
606,800

Net position
Net investment in capital assets
Unrestricted
Total net position

246,049
(122,370)
123,679

6,958,396
6,958,396

246,049
6,836,026
7,082,075

Assets
Current assets
Pooled cash and investments
Receivables, net
Accrued interest
Accounts
Due from other governments
Deposits
Inventories
Total current assets
Noncurrent assets
Non-depreciable
Depreciable, net
Total noncurrent assets
Total assets

Noncurrent liabilities
Accrued compensated absences
Other post-employment benefits
Net pension liability
Total noncurrent liabilities
Total liabilities

$

114

$

$

Table of Contents

TOWN OF GILBERT, ARIZONA
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2022

Employee
Benefit SelfInsurance

Total Internal
Service Funds

9,625,756
3,033
9,628,789

$ 24,085,816
3,533,884
27,619,700

$ 33,711,572
3,536,917
37,248,489

135,831
2,199,882
6,736,197
38,052
9,109,962

2,985,908
191,264
29,416,968
32,594,140

3,121,739
2,391,146
6,736,197
29,416,968
38,052
41,704,102

Operating income (loss)

518,827

(4,974,440)

(4,455,613)

Nonoperating revenues (expenses)
Interest earnings
Net change in fair value of investments
Gain (loss) on sale of capital assets
Total nonoperating revenues (expenses)

8,248
(53,899)
5,000
(40,651)

98,023
(438,717)
(340,694)

106,271
(492,616)
5,000
(381,345)

Income (loss) before transfers

478,176

(5,315,134)

(4,836,958)

-

2,000,000

2,000,000

478,176

(3,315,134)

(2,836,958)

Equipment
Maintenance
Operating revenues
Charges for services
Other
Total operating revenues

$

Operating expenses
General and administrative
Personnel services
Operation and maintenance
Claims incurred
Depreciation
Total operating expenses

Transfers in
Change in net position
Total net position - beginning
Total net position - ending

$

115

(354,497)
123,679

$

10,273,530
6,958,396

$

9,919,033
7,082,075

Table of Contents

TOWN OF GILBERT, ARIZONA
Statement of Cash Flows
Internal Service Funds
June 30, 2022

Cash flows from operating activities:
Cash receipts from customers
Other operating cash receipts
Cash receipts from other funds for services
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided (used) by operating activities

Equipment
Maintenance

Employee
Benefit SelfInsurance

$

$

Cash flows from noncapital financing activities
Advances from other funds
Transfers from other funds
Net cash provided (used) by noncapital financing activities

429,641
3,033
9,199,200
(6,819,485)
(2,275,721)
536,668

Total

3,533,884
23,979,872
(29,011,823)
(185,419)
(1,683,486)

$

429,641
3,536,917
33,179,072
(35,831,308)
(2,461,140)
(1,146,818)

-

1,300,000
2,000,000
3,300,000

1,300,000
2,000,000
3,300,000

(181,816)
5,000

-

(181,816)
5,000

(176,816)

-

(176,816)

Cash flows from investing activities
Investment income
Net cash provided (used) by investing activities

(45,689)
(45,689)

(335,125)
(335,125)

(380,814)
(380,814)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of the year

$

314,163
1,358,349
1,672,512

1,281,389
13,032,263
$ 14,313,652

1,595,552
14,390,612
$ 15,986,164

$

518,827

$

$

Cash flows from capital and related financing activities
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Net cash provided (used) by capital and related financing
activities

Reconciliation of operating income to net cash provided by
operating activities:
Operating income / (loss)
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depreciation
Changes in assets, deferred outflows of resources, liabilities, and
deferred inflows of resources:
Accounts receivable
Due from other governments
Inventories
Deferred outflows of resources
Accounts payable
Claims payable
Accrued expenses
Other post-employment benefits
Net pension liability
Deferred inflows of resources
Net cash provided (used) by operating activities

116

$

(4,974,440)

(4,455,613)

38,052

-

38,052

3,085
(276,079)
(52,351)
328,622
(3,210)
1,417
(601,527)
579,832
536,668

(102,186)
(3,758)
89,535
3,301,518
5,845
(1,683,486)

(99,101)
(3,758)
(276,079)
(52,351)
418,157
3,301,518
2,635
1,417
(601,527)
579,832
(1,146,818)

$

$

Table of Contents

STATISTICAL SECTION

This part of Gilbert's Annual Comprehensive Financial Report presents detailed information as a context for
understanding what the information in the financial statements and note disclosures says about the Town's overall
financial health.

Contents

Page

Financial Trends

119

These schedules contain trend information to help the reader understand how Gilbert's
financial performance and well-being have changed over time.
Revenue Capacity

125

These schedules contain information to help the reader assess Gilbert's most significant
local revenue source, sales tax.
Debt Capacity

128

These schedules present information to help the reader assess the affordability of Gilbert's
current levels of outstanding debt and Gilbert's ability to issue additional debt in the future.
Demographic and Economic Information

133

These schedules offer demographic and economic indicators to help the reader understand
the environment within which Gilbert's financial activities take place.
Operating Information

135

These schedules contain service and infrastructure data to help the reader understand how
the information in Gilbert's financial report relates to the services Gilbert provides and the
activities it performs.
Other Information

138

Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Report for the relevant year.

117

Table of Contents

118

Table of Contents
Schedule 1

Town of Gilbert, Arizona
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(1,000's)

2013
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position

$

$

687,910
60,525
107,172
855,607

$

325,357
70,879
263,978
660,214

$

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

$ 1,013,267
131,404
371,150
$ 1,515,821

$

2014

$

$

2015

680,717
80,924
92,357
853,998

$

351,797
65,577
281,391
698,765

$

$ 1,032,514
146,501
373,748
$ 1,552,763

$

$

2016

688,900
82,546
30,276
801,722

$

363,333
54,084
290,870
708,287

$

$ 1,052,233
136,630
321,146
$ 1,510,009

$

$

735,369
83,227
49,960
868,556

$

411,831
34,054
304,198
750,083

$

$ 1,147,200
117,281
354,158
$ 1,618,639

119

2017

$

$

2018

753,973
72,780
60,983
887,736

$

399,537
42,814
342,616
784,966

$

$ 1,153,510
115,594
403,598
$ 1,672,702

$

$

2019

790,285
76,701
45,964
912,950

$

392,632
34,499
389,336
816,467

$

$ 1,182,917
111,200
435,299
$ 1,729,416

$

$

2020

2021
(as restated)

792,864
87,450
67,904
948,218

$

804,917
72,943
132,638
$ 1,010,497

844,068
91,917
162,177
$ 1,098,162

885,750
115,550
183,410
$ 1,184,710

462,857
30,972
379,636
873,465

$

$

$

$ 1,255,721
118,422
447,540
$ 1,821,683

$

468,440
24,873
408,154
901,467

$ 1,273,357
97,815
540,792
$ 1,911,964

$

2022

$

506,807
22,717
418,159
947,683

$ 1,350,875
114,634
580,336
$ 2,045,845

$

$

541,025
13,500
410,204
964,729

$ 1,426,775
129,050
593,614
$ 2,149,439

Table of Contents
Schedule 2

Town of Gilbert, Arizona
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(1,000's)
Expenses
Governmental activities
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Transportation
Non departmental
Interest and fiscal charges on long-term debt
Total governmental activities expenses
Business-type activities
Water
Wastewater
Environmental services
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities
Charges for services
Development services
Police
Fire
Highways and streets
Parks and recreation
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues

2013

$

10,461
4,150
5,474
6,850

2014

$

13,378
4,347
5,975
9,062

2015

$

2016

19,090
1,814
4,053
7,082

$

20,049
2,110
4,164
7,611

2017

$

19,454
2,109
4,300
9,400

2018

$

19,176
2,000
4,078
10,312

2019

$

24,948
1,883
3,898
9,449

2020

$

23,430
2,591
3,947
10,898

2021

$

41,161
2,943
4,356
11,389

2022

$

32,299
3,090
4,623
11,876

42,759
25,867
44,048
20,858
461
3,114
15,142
179,184

45,931
28,853
45,781
22,493
842
4,104
15,216
195,982

47,541
28,071
46,932
28,429
778
4,423
12,780
200,993

50,115
31,972
48,726
25,647
1,051
5,311
12,911
209,666

63,151
42,513
51,931
25,202
1,132
13,690
10,506
243,389

54,117
34,969
52,545
29,985
1,151
7,976
10,793
227,102

55,328
35,263
54,632
35,840
886
3,915
9,890
235,933

65,972
41,373
61,414
26,844
655
5,076
9,641
251,841

65,100
38,174
62,501
28,975
609
6,495
8,716
270,419

67,492
48,220
63,022
32,719
3,523
8,221
275,085

38,339
22,170
15,588
76,097

39,927
23,615
16,113
79,655

41,817
25,620
16,720
84,157

44,360
26,530
17,719
88,609

42,329
26,791
16,857
85,978

44,605
27,244
18,183
90,032

47,167
27,844
21,689
96,700

49,373
30,930
22,928
103,231

52,259
31,224
25,644
109,127

55,761
36,908
27,861
120,530

$ 255,281

$ 275,637

$ 285,150

$ 298,276

$ 329,366

$ 317,134

$ 332,632

$ 355,073

$ 379,546

$ 395,615

$

$

$

$

$

$

$

$

$

$

7,240
5,512
185
1,516
3,706
1,017
21,270
36,089
76,535

6,783
5,477
254
1,440
3,765
1,066
22,326
19,186
60,297

6,608
4,526
224
1,643
4,146
829
24,171
37,214
79,361

120

6,826
5,343
197
1,745
4,366
873
38,666
65,535
123,551

6,900
7,484
231
1,951
4,603
844
33,204
41,877
97,094

7,227
3,826
360
1,887
4,700
748
28,381
32,904
80,033

8,318
3,609
386
16
4,355
1,136
30,012
36,203
84,037

6,867
1,827
827
13
4,800
953
53,661
39,675
108,623

8,121
2,024
1,208
74
5,419
953
43,619
57,447
118,865

5,864
3,338
4,908
63
7,036
1,013
40,309
61,139
123,670

Table of Contents
Schedule 2 Continued

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

36,455
23,083
16,760
34,153
110,451
186,986

37,867
23,852
17,308
36,252
115,279
175,576

37,501
24,625
18,007
29,017
109,150
188,511

39,457
25,116
18,141
1,051
43,655
127,420
250,971

40,696
26,032
18,270
953
34,134
120,084
217,178

42,868
26,517
18,437
1,184
30,615
119,622
199,655

45,508
28,686
20,633
1,720
27,032
123,578
207,616

48,782
29,772
21,918
1,698
18,319
120,489
229,111

52,890
30,847
22,460
1,960
22,186
130,343
249,208

55,270
31,695
24,187
2,607
29,360
143,119
266,789

Business-type activities
Charges for services
Water
Wastewater
Environmental services
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues

$

Net (Expense)/Revenue
Governmental activities
Business-type activities
Total primary government net expense

$ (102,649)
34,354
$ (68,295)

General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Sales taxes
$
61,813
Property taxes
19,184
In-Lieu property taxes
1,377
Franchise taxes
3,083
Unrestricted state-shared revenue
38,355
Unrestricted grants and contributions
1,193
Unrestricted investment earnings
722
Gain/(loss) on sale of capital assets
Miscellaneous
932
Transfers
121
Total governmental activities
126,780
Business-type activities
Unrestricted investment earnings
1,061
Gain on sale of capital assets
Miscellaneous
1,179
Transfers
(121)
Total business-type activities
2,119
Total primary government
$ 128,899
Change in Net Position
Governmental activities
Business-type activities
Total primary government

$
$

24,131
36,473
60,604

$

$

$

$

$

$

$

$

$

$ (135,685)
35,624
$ (100,061)

$ (121,632)
24,993
$ (96,639)

$ (86,115)
38,812
$ (47,304)

$ (146,295)
34,107
$ (112,188)

$ (147,069)
29,589
$ (117,479)

$ (151,895)
26,879
$ (125,017)

$ (143,219)
17,257
$ (125,961)

$ (151,554)
21,216
$ (130,338)

$ (151,414)
22,589
$ (128,825)

$

$

$

$

$

$

$

$

$

$

$
$

66,757
18,315
1,287
2,616
41,323
904
1,508
29
1,226
110
134,076
1,742
30
1,266
(110)
2,928
137,004

(1,609)
38,552
36,943

$

$
$

71,773
19,423
1,201
2,737
44,263
2,595
1,224
106
847
184
144,353
1,457
172
1,310
(184)
2,755
147,108

22,722
27,748
50,469

$

$
$

77,070
19,424
1,187
2,989
45,028
3,204
2,651
136
1,162
98
152,949
2,666
158
259
(98)
2,984
155,933

66,834
41,796
108,630

121

$

$
$

82,797
20,761
1,159
2,814
52,861
2,400
859
154
1,224
446
165,475
1,009
92
121
(446)
776
166,251

19,180
34,883
54,063

$

$
$

89,497
21,549
1,124
2,911
52,193
2,444
1,549
1,333
1,352
(64)
173,888
1,894
39
172
64
2,169
176,057

26,820
31,758
58,579

$

$
$

98,648
25,220
1,024
2,954
53,777
3,036
10,153
1,466
1,153
(242)
197,189
11,494
183
366
242
12,284
209,473

45,293
39,163
84,456

$

$
$

107,534
26,570
1,015
2,744
57,802
2,762
10,467
(3,973)
674
(96)
205,498
9,820
148
680
96
10,744
216,242

62,279
28,002
90,281

$

$
$

123,930
28,603
1,009
2,669
66,463
4,140
526
(4,508)
936
(2,665)
221,103
32
405
75
2,665
3,177
224,280

69,549
24,393
93,942

$

$
$

142,901
30,356
1,086
2,660
72,667
2,125
(14,993)
238
1,080
(158)
237,962
(6,500)
241
559
158
(5,542)
232,420

86,548
17,047
103,595

Table of Contents
Schedule 3

Town of Gilbert, Arizona
Program Revenues by Function
Last Ten Fiscal Years
(1,000's)
2013
Function/Program
Governmental activities
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Transportation
Non departmental

$

36
251
792
7,240

2014

$

59
262
823
6,807

2015

$

962
27
824
6,608

2016

$

690
24
859
6,826

2017

$

991
20
831
6,900

2018

$

2,235
27
731
7,227

2019

$

1,830
7
700
8,318

2020

$

1,503
12
573
7,145

2021

$

4,862
629
8,641

2022

$

5,651
4
679
5,864

7,669
4,079
41,280
14,475
662
51

7,207
3,697
28,218
12,461
712
51

8,975
3,766
44,497
13,012
639
51

10,645
4,170
69,791
29,861
635
50

11,551
3,877
54,059
18,190
626
50

7,829
4,203
44,943
12,158
630
50

8,544
4,687
43,133
15,035
648
1,136

18,366
13,783
50,476
15,561
643
562

9,757
8,384
62,153
23,312
643
484

6,495
9,000
76,106
16,230
3,241
400

Subtotal governmental activities

76,535

60,297

79,361

123,551

97,095

80,033

84,037

108,624

118,865

123,670

Business-type activities
Water
Wastewater
Environmental services

55,662
38,029
16,760

57,750
40,220
17,308

55,590
35,552
18,008

68,102
41,178
18,141

61,546
37,232
21,307

64,056
36,232
19,334

65,489
36,344
21,746

64,204
34,111
22,173

70,973
36,354
23,016

78,518
40,082
24,519

Subtotal business-type activities

110,451

115,278

109,150

127,421

120,085

119,622

123,578

120,488

130,343

143,119

$ 186,986

$ 175,575

$ 188,511

$ 250,972

$ 217,180

$ 199,655

$ 207,616

$ 229,112

$ 249,208

$ 266,789

Total primary government

122

Table of Contents
Schedule 4

Town of Gilbert, Arizona
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(1,000's)

General fund
Nonspendable
Assigned
Unassigned
Total general fund

$

$

2013

2014

2015

2016

2017

2018

2019

2020

23,527 $
10,092
59,555
93,174 $

25,380 $ 24,470 $ 19,866 $ 18,995 $ 17,877 $ 23,061 $ 15,833 $ 11,561 $ 11,722
12,081
17,046
13,681
32,766
41,371
41,631
68,002
76,747
86,881
61,764
67,057
85,498
82,885
72,453
89,787
133,901
139,520
153,384
99,225 $ 108,573 $ 119,045 $ 134,646 $ 131,701 $ 154,479 $ 217,736 $ 227,828 $ 251,987

All other governmental funds
$
1 $
83 $
2 $
4 $
- $
- $
Nonspendable
2 $
1 $
89,654
92,337
96,837
87,005
Restricted
139,725
134,441
110,470
101,628
36,258
18,764
22,462
38,337
Assigned
34,387
15,971
(23,609)
(25,466)
(23,981)
(19,897)
Unassigned
(19,353)
(18,311)
(17,424)
(16,448)
Total all other governmental funds $ 102,304 $ 85,718 $ 95,320 $ 105,449 $ 154,761 $ 132,102 $ 93,046 $ 85,180 $

123

2021

2022

- $
70
95,704
311,522
5,369
(9,259)
(6,686)
86,445 $ 310,275

Table of Contents
Schedule 5
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(1,000's)
2013
Revenues
Taxes
Sales
Property
Franchise
Special assessments
Licenses and permits
Charges for services
Intergovernmental
Fines and forfeitures
Other entities' participation
System development fees
Gifts and donations
Investment earnings
Net change in fair value of investmentsa
Miscellaneous
Total revenues
Expenditures
Current
General government
Management and policy
Finance and management services
Court
Development services
Public safety
Police
Fire
Highways and streets
Parks and recreation
Transportation
Non departmental
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Bond issuance costs
Fiscal and other charges
Capital outlay
Total expenditures

$

61,890
21,548
2,374
1,299
5,434
9,573
72,904
4,710
2,252
17,836
119
706
n/a
933
201,578

2014

$

66,772
20,681
2,700
2,090
4,748
10,027
68,046
4,469
1,977
13,435
155
1,494
n/a
1,255
197,849

2015

$

71,794
21,953
2,737
1,184
4,791
10,440
76,284
4,476
382
18,836
192
1,210
n/a
953
215,232

2016

$

77,108
22,000
3,389
2,233
4,787
11,147
77,007
4,618
1,666
22,944
187
2,639
n/a
14,797
244,522

2017

$

82,980
23,707
2,814
696
4,785
11,161
87,364
4,336
2,252
18,101
120
836
n/a
5,683
244,835

2018

$

89,516
24,468
2,911
958
4,645
12,151
84,923
4,065
1,585
17,617
195
1,523
n/a
1,796
246,353

2019

$

98,671
25,220
2,954
818
5,735
12,816
86,480
3,305
4,380
21,966
183
9,890
n/a
1,153
273,571

2020

$

107,552
26,570
2,744
744
4,689
13,154
117,277
3,084
9,799
20,971
280
10,085
n/a
674
317,623

2021

$

123,932
28,603
2,669
617
5,868
14,884
132,388
3,259
919
38,771
163
4,205
(3,714)
936
353,500

2022

$

142,924
30,356
2,660
1,351
4,068
20,552
141,466
3,231
5,280
19,270
281
3,527
(18,134)
1,383
358,215

12,584
4,235
4,753
5,999

15,336
4,413
5,089
6,078

20,485
1,943
3,493
6,069

20,997
2,134
3,608
6,239

22,001
2,270
3,657
7,049

21,858
2,338
3,600
7,200

22,942
2,396
3,752
7,701

26,854
2,681
3,491
8,194

28,747
3,003
3,731
8,526

30,834
3,162
4,037
8,949

38,817
22,543
10,637
13,895
461
3,114

41,947
24,993
11,969
15,614
841
4,104

43,084
25,631
12,478
21,836
774
4,423

44,402
28,295
12,831
18,591
1,046
5,311

54,397
32,048
14,680
19,660
1,135
13,690

53,174
35,698
14,545
24,351
1,151
7,976

58,327
35,828
15,769
30,482
888
3,915

69,450
35,883
23,184
20,588
652
5,076

72,453
38,003
24,892
23,051
606
22,090

62,456
42,359
24,480
26,627
8,178

24,705
15,411
13
30,849
188,016

25,630
14,252
13
38,804
209,083

23,750
13,108
209
307
58,849
236,439

30,105
13,773
37
36,573
223,942

34,935
11,583
779
9
34,111
252,004

33,965
11,758
12,096
408
14
50,895
281,027

34,190
11,242
35
71,644
299,111

49,055
9,868
853
13
127,093
382,935

35,615
10,068
13
79,273
350,071

29,495
8,312
662
15
60,593
310,158

Excess (deficiency) of revenues over
(under) expenditures

13,562

(11,234)

(21,207)

20,580

(7,169)

(34,674)

(25,540)

(65,312)

3,429

48,057

Other financing sources (uses)
Transfers in
Transfers out
Proceeds from sale of capital assets
Revenue obligations issued
Premium on revenue obligations
Bonds issued
Premium on bonds
Payment to refunded bond escrow agent
Total other financing sources and uses

25,774
(25,653)
121

45,891
(45,781)
590
700

23,401
(23,216)
36,980
2,706
28,080
4,417
(32,211)
40,157

21,406
(21,385)
21

23,334
(22,881)
121,670
14,139
(64,182)
72,080

29,999
(30,063)
1,226
49,525
7,546
(49,162)
9,071

63,086
(63,324)
1,691
1,453

36,774
(36,871)
38,470
76,750
5,577
120,700

46,987
(49,652)
10,594
7,929

62,268
(64,425)
262
188,910
12,917
199,932

Net change in fund balances
Debt service as a percentage of noncapital expenditures
a

$

13,683
25.5%

$

(10,534)
23.4%

$

18,950
20.8%

Previous years' fair market value adjustment was netted with investment earnings

124

$

20,601
23.4%

$

64,911
21.3%

$

(25,603)
25.1%

$

(24,087)
20.0%

$

55,388
23.0%

$

11,358
16.9%

$

247,989
15.1%

Table of Contents
Schedule 6A

Town of Gilbert, Arizona
Sales Tax Collections by Category
Fiscal Years 2013 - 2016 a
2013
Construction
Manufacturing
Communications & Utilities
Wholesale
Retail
Restaurant & Bar
Real Estate, Rental & Leasing

2016

7,867,067 $
763,152
5,931,935
1,100,749
30,784,509
4,402,299
7,944,973
377,228
1,369,608
487,279
25,667
154,772
2,271
594,043

8,837,079 $
939,861
6,120,225
1,207,006
33,078,748
4,867,638
7,952,365
487,680
1,676,438
505,146
22,721
398,169
4,311
674,274

7,663,801 $
882,509
6,342,578
1,320,977
37,463,617
5,526,275
8,286,878
533,870
2,018,647
629,740
30,529
438,257
3,020
652,973

7,326,040
1,042,710
6,327,257
1,486,450
40,406,219
6,177,869
9,290,919
569,390
2,223,706
784,957
37,823
557,582
18,977
858,177

$

61,805,552 $

66,771,661 $

71,793,671 $

77,108,076

Other b
Transportation & Warehousing
Finance & Insurance
Public Administration
Arts & Entertainment

Gilbert's local sales tax rate

2015

$

Accommodation b
Services

Total

2014

1.5%

1.5%

1.5%

1.5%

Source: Arizona Department of Revenue
a

Effective July 1, 2016, the Arizona Department of Revenue changed the way taxpayers report city tax on their tax
returns and simultaneously changed the manner in which they summarize the tax data in their reports to the cities.
As a result, Gilbert no longer receives the tax data in the same categories that were recorded in the past. See
Schedule 6B for fiscal years 2017 forward.
b
Effective July 1, 2020, Accommodation (Bed Tax), Accommodation (Base 1.5% Tax) and Retail - Food for Home
Consumption categories have passed the confidentiality requirements and now are separately stated.

Note: State and local laws prohibit the disclosure of individual taxpayer information.

125

Table of Contents
Schedule 6B

Town of Gilbert, Arizona
Sales Tax Collections by Category
Fiscal Years 2017 - 2022
2017
Accommodation (Bed Tax)
Accommodation (Base 1.5% Tax) b
Amusement
Communications & Utilities
Construction Contracting
c
Maintenance, Repair, Replacement & Alteration
Personal Property Rental
Publications, Advertising & Job Printing
Rental of Commercial Property/Non-Residential
Residential Rental
Restaurant & Bar
Retail
b
Retail - Food for Home Consumption
d
Tax License Fees
Other

$

Total

$

Gilbert's local sales tax rate

a

2018

2019

2020

599,950 $
793,681
5,625,248
9,611,076
89,165
1,392,591
174,054
4,116,417
3,367,073
6,974,438
49,491,813
14,632
730,191

598,668 $
844,634
5,763,531
10,833,291
1,535,298
165,942
4,435,844
3,652,056
7,638,319
53,366,713
13,246
668,812

728,224 $
922,856
5,707,201
13,167,940
1,706,431
166,146
4,790,946
4,238,867
8,549,495
57,710,844
9,646
972,655

82,980,329 $

89,516,354 $

98,671,251 $ 107,551,991

1.5%

1.5%

1.5%

820,336
709,163
5,784,555
12,919,742
1,755,690
140,170
4,944,404
4,569,549
8,442,741
66,602,568
863,073

1.5%

2021
$

2022

955,504 $
531,419
587,909
5,860,873
12,949,937
1,973,489
124,149
5,368,895
5,149,541
9,968,916
66,654,843
13,722,892
83,565

1,798,155
994,743
1,063,321
5,992,184
14,942,241
2,514,789
171,133
6,080,132
6,143,339
13,025,145
75,134,162
14,986,376
55,700

$ 123,931,932

$ 142,901,420

1.5%

1.5%

Source: Arizona Department of Revenue
a Effective July 1, 2016, the Arizona Department of Revenue changed the way taxpayers report city tax on their tax returns and simultaneously changed the manner in which

they summarize the tax data in their reports to the cities. As a result, Gilbert no longer receives the tax data in the same categories that were reported in the past. See
Schedule 6A for Fiscal Years 2012 - 2016 data.
b Effective July 1, 2020, Accommodation (Bed Tax), Accommodation (Base 1.5% Tax) and Retail - Food for Home Consumption categories have passed the confidentiality
requirements and now are separately stated.
c Maintenance, Repair, Replacement & Alteration has been combined with Construction Contracting due to disclosure laws concerning confidentiality.
d
Effective July 1, 2019, Tax License Fees were combined with Other due to disclosure laws concerning confidentiality.

Note: State and local laws prohibit the disclosure of individual taxpayer information.
126

Table of Contents
Schedule 7

Town of Gilbert, Arizona
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
2013a

2014

2015

2016

2017

2018

2019

2020

2021

2022

Town Direct Rates:
Hotel/Transient Lodging
All Others

4.50%
1.50%

4.50%
1.50%

4.50%
1.50%

4.50%
1.50%

4.50%
1.50%

4.30%
1.50%

4.30%
1.50%

4.30%
1.50%

4.30%
1.50%

4.30%
1.50%

County Rates:
Hotel/Transient Lodging
All Others

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

1.77%
0.70%

State Rates:
Hotel/Transient Lodging
All Others

6.50%
6.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

5.50%
5.60%

Source: Gilbert Finance & Management Services Department
a The temporary state sales tax increase passed by voters in 2010 expired on May 31, 2013.

for all others to 5.60% on June 1, 2013.
Note: Gilbert sales tax rate may be changed with the approval of Council.

127

The state sales tax for hotel/transient lodging decreased to 5.50% and

Table of Contents
Schedule 8

Town of Gilbert, Arizona
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities

Special
Assessment
Bonds

Street and
Highway User
Revenue
Bonds

Municipal
Property
Corporation
Revenue
Bonds

Business-type Activities
Municipal
Water and
Property
General
Wastewater
Corporation
Obligation
Revenue
Revenue
Bonds
Bonds
Bonds

Total
Primary
Government

Percentage
of Personal
Income

2,115,170 $
247,585
-

446,023,143
400,253,194
409,965,927

6.31 %
6.09
5.89

Fiscal
Year

General
Obligation
Bonds

2013 $
2014
2015

147,640,933 $
135,775,830
123,420,395

10,469,338 $
9,445,797
8,306,402

18,130,241 $
16,864,197
13,754,807

142,828,198 $
- $
133,835,907
126,607,711
39,685,688

2016
2017
2018

105,296,311
157,102,290
140,551,095

6,504,185
6,126,440
5,464,645

10,538,003
7,174,209
3,664,605

118,310,093
109,229,636
95,342,840

39,685,688
39,637,764
38,887,844

-

-

135,410,861
134,594,390
170,517,212

415,745,141
453,864,729
454,428,241

5.52
5.30
5.13

1,789
1,833
1,835

2019
2020
2021
2022

122,209,904
168,454,903
147,475,574
326,043,366

4,912,850
4,526,056
4,014,261
2,852,466

-

81,835,435
64,161,400
49,482,365
34,137,804

38,122,923
37,328,003
36,498,083
35,633,163

-

-

160,502,481
151,742,751
142,648,020
634,385,933

407,583,593
426,213,113
380,118,303
1,033,052,732

4.64
4.17
3.72
9.72

1,571
1,618
1,443
3,773

Revenue
Obligations

Notes:
See Schedule 13 for personal income and population data.
Details regarding Gilbert's outstanding debt can be found in the notes to the financial statements.
Amounts include unamortized bond discounts/premiums.

128

13,757,813 $ 111,081,450 $
104,083,879
98,190,924

Per
Capita
$

2,066
1,807
1,804

Table of Contents
Schedule 9

Town of Gilbert, Arizona
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years

General
Bonded Debt
Outstanding a

Fiscal
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
a
b

Less Amount
Available in
Debt Service
Fund

$

149,756,103
136,023,415
123,420,395
105,296,311
157,102,290
140,551,095
122,209,904
168,454,903
147,475,574
326,043,366

$

9,599,968
8,942,949
10,165,593
6,952,183
2,186,272
6,020,480
1,870,513
1,846,926
1,925,381
2,392,952

Net General
Bonded Debt
Outstanding
$

140,156,135
127,080,466
113,254,802
98,344,128
154,916,018
134,530,615
120,339,391
166,607,977
145,550,193
323,650,414

$

Secondary
Assessed
Property Value b

Limited
Property
Value b

1,675,360,422
1,594,806,737
1,829,471,839
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
1,845,325,449
1,979,359,269
2,105,762,268
2,256,162,227
2,428,289,285
2,618,569,519
2,807,360,551

Percentage of
Applicable
Property Value
8.37 %
7.97
6.19
5.33
7.83
6.39
5.33
6.86
5.56
11.53

Per
Capita
$

649
574
498
423
626
543
464
632
552
1,182

Includes unamortized bond discounts/premiums
Maricopa County Assessor's Office
Notes:
In accordance with Proposition 117, The Arizona Property Tax Assessed Valuation Amendment , property taxes are calculated based on the limited property value
beginning with tax year 2015.
See Schedule 13 for population data.
General obligation bonds principal and interest payments are paid for with secondary property taxes.

129

Table of Contents
Schedule 10

Town of Gilbert, Arizona
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022

Governmental Unit
Debt repaid with property taxes
Maricopa County b
Maricopa County Community College District c
Maricopa County Special Health District
Gilbert Unified School District No. 41
Higley Elementary School District No. 60
Chandler Unified School District No. 80
Mesa Unified School District No. 4
East Valley Institute of Technology District No. 401 d

$

Debt
Outstanding

Estimated
Percentage
Applicable a

None
184,715,000
640,695,000
156,110,000
86,925,000
385,946,111
273,525,000
None

5.75%
5.75%
5.75%
69.27%
88.33%
13.26%
0.42%
11.64%

Estimated
Share of
Direct and
Overlapping
Debt

$

Subtotal, overlapping debt
Town of Gilbert direct debt e

None
10,621,113
36,839,963
108,137,397
76,780,853
51,176,454
1,157,205
None

284,712,985
398,666,799

100.00%

398,666,799
$

Total direct and overlapping debt

683,379,784

Source: The various jurisdictions
a

Proportion applicable to Town of Gilbert, Arizona is computed on the ratio of limited property valuation for fiscal year 2022.

b

Excludes various other non-property tax supported debt such as Public Finance Corporation lease revenue bonds, Stadium District revenue bonds,
Stadium District loans, Housing Authority loans and capital leases.
c
Excludes non-property tax supported debt such as revenue bonds.

d

Based on the East Valley Institute of Technology's secondary assessed valuation and does not include amount of secondary assessed valuation in
Pinal County.
e
Includes: General Obligation bonds, Special Assessments bonds, Revenue Obligation bonds, Revenue bonds and unamortized bond premiums.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of Gilbert. This schedule estimates the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Gilbert. This process recognizes
that, when considering Gilbert'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.
130

Table of Contents
Schedule 11

Town of Gilbert, Arizona
Legal Debt Margin Information
Last Ten Fiscal Years
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

20% Limitation
Debt limit equal to 20% of net full cash
assessed valuation

$

Total net debt applicable to 20% limit
Premium adjustment
Legal 20% debt margin (available borrowing
capacity)

$

Total net debt applicable to the 20% limit as a
percentage of 20% debt limit

333,373,568 $

317,092,733 $

346,856,631 $

369,065,090 $

395,871,854 $

524,748,518 $

566,219,031 $

622,820,366 $

695,490,004 $

761,061,261

149,675,000

135,310,000

122,715,000

105,250,000

143,945,000

128,090,000

110,445,000

151,825,000

131,830,000

298,465,000

-

-

-

-

9,675,637

9,516,726

8,090,801

11,071,074

9,400,564

20,134,505

442,461,756

183,698,568 $

181,782,733 $

224,141,631 $

263,815,090 $

242,251,217 $

387,141,792 $

447,683,230 $

459,924,292 $

554,259,440 $

44.90%

42.67%

35.38%

28.52%

38.81%

26.22%

20.93%

26.15%

20.31%

100,012,071 $

95,127,820 $

104,056,989 $

110,719,527 $

118,761,556 $

157,424,555 $

169,865,709 $

186,846,110 $

208,647,001 $

41.86%

6% Limitation
Debt limit equal to 6% of net full cash
assessed valuation

$

Total net debt applicable to 6% limit
Legal 6% debt margin (available borrowing
capacity)

Total net debt applicable to the 6% limit as a
percentage of 6% debt limit

-

$

100,012,071 $

0.00%

-

95,127,820 $

0.00%

-

104,056,989 $

0.00%

-

110,719,527 $

0.00%

-

118,761,556 $

0.00%

-

157,424,555 $

0.00%

Note: The Constitution of the State of Arizona establishes two levels of bonded indebtedness limits based upon the type of improvement constructed with
the debt. The twenty percent bond type is restricted to water, wastewater, electric, parks and open space improvements, streets, public safety, and fire and
emergency facilities. The six percent bond type is all other general purpose improvements. In 2017, HB 2452: bonding; amortized premium; segregated
fund passed, requiring the net premium associated with a general obligation bond to be amortized for all debt limitation purposes on a pro-rata basis each
year.

131

-

169,865,709 $

0.00%

-

186,846,110 $

0.00%

-

208,647,001 $

0.00%

228,318,378
-

228,318,378

0.00%

Table of Contents
Schedule 12

Town of Gilbert, Arizona
Pledged-Revenue Coverage
Last Ten Fiscal Years
Public Facilities Municipal Property Corp. Revenue Bonds
Special Assessment Bonds

& Subordinate Lien Pledged Revenue Obligations

Special
Fiscal

Assessment

Year

Collections

2013

$

1,298,984 $

Excise Taxes &
State-Shared

Debt Service
Principal
585,000 $

Interest

Coverage

Revenue
$

c

Coverage

553,258

1.14

109,637,647 $

9,695,000 $

6,873,353

6.62

2,089,887

1,020,000

507,965

1.37

117,627,904

10,080,000

6,458,288

7.11

2015

1,184,368

1,135,000

470,225

0.74

125,743,087

7,515,000

6,030,998

9.28

2016

2,232,678

1,795,000

394,755

1.02

133,104,631

8,000,000

7,457,791

8.61

2017

695,541

375,000

321,073

1.00

146,007,063

9,660,000

6,877,081

8.83

2018

952,679

660,000

294,670

1.00

159,912,939

14,355,000

4,721,073

8.38

2019

818,092

550,000

264,095

1.00

170,885,312

12,745,000

5,213,731

9.52

2020

744,007

385,000

239,908

1.19

193,995,174

13,300,000

4,610,856

10.83

2021

617,024

510,000

217,075

0.85

222,921,775

15,110,000

3,958,981

11.69

2022

1,351,411

1,160,000

193,350

1.00

245,000,143

6,060,000

3,210,356

26.43

Water

Less:

Net

Fiscal

Operating

Operating

Available

Year

Revenues a

Expenses a

Revenue

2013

b

Interest

2014

Water and Wastewater Revenue Bonds c

a

Debt Service
Principal

$

Water Resources Municipal Property Corp. Revenue Bonds

Debt Service
Principal

Interest

Coverage
$

Net

Water

Available

System

Wastewater
System

Revenue b

Dev't Fee

Dev't Fee

Debt Service

$

Principal

Interest

Coverage

60,627,063 $ 36,124,117 $ 24,502,946 $

1,430,000 $

681,663

11.60

22,391,283 $

12,466,409 $

-

3,700,000 $

5,542,403

3.77

2014

62,873,206

37,514,942

25,358,264

1,500,000

610,163

12.02

23,248,101

10,567,046

-

3,875,000

5,198,059

3.73

2015

63,338,422

40,316,645

23,021,777

-

-

N/A

23,021,777

10,461,708

-

4,075,000

4,894,864

3.73

2016

64,659,329

42,119,371

22,539,958

-

-

N/A

22,539,958

11,873,824

-

4,275,000

4,683,019

3.84

2017

66,788,603

41,921,216

24,867,387

-

-

N/A

24,867,387

9,914,166

-

4,830,000

4,984,570

3.54

2018

69,487,792

45,014,122

24,473,670

-

-

N/A

24,473,670

9,944,975

5,308,292

8,480,000

4,970,948

2.95

2019

74,465,811

44,686,700

29,779,111

-

-

N/A

29,779,111

9,434,032

5,189,779

7,225,000

6,207,163

3.31

2020

78,919,231

48,227,311

30,691,920

-

-

N/A

30,691,920

6,679,195

3,394,980

7,560,000

5,865,313

3.04

2021

83,775,290

50,449,389

33,325,901

-

-

N/A

33,325,901

8,936,917

5,295,232

7,950,000

5,487,313

3.54

2022

84,754,618

53,871,428

30,883,190

-

-

N/A

30,883,190

9,634,948

3,022,095

8,340,000

5,089,813

3.24

Combined operating revenues and expenses for the Water and Wastewater Funds, as applicable.
Combined operating revenues and expenses for the Water and Wastewater Funds less debt service payments for the Water and Wastewater Revenue Bonds.
These bonds were paid off in fiscal year 2014.
Note: Details regarding Gilbert's outstanding debt can be found in the notes to the financial statements.

132

Table of Contents
Schedule 13

Town of Gilbert, Arizona
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income b
Fiscal
Year

Population

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

215,938
221,506
227,217
232,399
247,600
247,600
259,386
263,461
273,796
n/a

Per Capita
Income c

(in thousands)
(estimate)

a

$

7,064,000
6,568,000
6,962,000
7,534,000
8,558,000
8,858,000
8,775,000
10,222,000
10,623,000
n/a

$

(estimate)

Median
Age c

School
Enrollment d

31,035
28,184
30,639
32,418
34,565
35,777
33,831
38,800
38,800
39,073

33.1
37.5
32.7
33.2
33.1
34.4
35.2
34.8
34.8
35.3

38,573
38,573
37,240
34,079
35,449
34,552
33,393
34,188
33,055
33,644

Unemployment
Rate e
5.70 %
5.20
4.30
4.20
3.70
3.50
3.80
8.00
4.90
2.80

Sources:
a

Fiscal years 2009 through 2016 Census.gov; fiscal years 2017 and 2018 Office of Management & Budget; fiscal years 2019 - 2021
Maricopa Association of Governments; 2022 not available before publication
b
Estimated based on population and per capita income.
c
Fiscal years 2009 through 2015: American Community Survey; fiscal years 2016 through 2022: Census.gov
d
Gilbert Public Schools
e
laborstats.az.gov through fiscal year 2019; azcommerce.com fiscal years 2020 through 2022

133

Table of Contents
Schedule 14

Town of Gilbert, Arizona
Top Ten Principal Employers
Current Fiscal Year Compared to Nine Years Ago

Employer

Fiscal Year 2022
Percentage
of Total Town
Employees
Rank
Employment

Gilbert Public Schools
Banner Health/MD Anderson
Town of Gilbert
Frys Food Stores
Higley Unified School District
Walmart Stores Inc. (Walmart/Sams Club)
Godaddy Operating Company
Northrop Grumman
Dignity Health
Silent Aire USA Inc
Mercy Gilbert Medical Center
Chandler Unified School District
BH Drywall
Dillards Retail and Distribution

3,098
2,465
1,679
1,518
1,246
1,218
1,159
1,078
878
778
---------

Total

15,117

1
2
3
4
5
6
7
8
9
10

Source: Maricopa Association of Governments (MAG)

134

Fiscal Year 2013
Percentage
of Total Town
Employees
Rank
Employment

3.43 %
2.73
1.86
1.68
1.38
1.35
1.28
1.19
0.97
0.86
---------

3,642
2,268
1,191
966
--791
950
------1,233
518
500
490

16.73 %

12,549

1
2
4
5
7
6

3
8
9
10

4.55 %
2.84
1.49
1.21
--0.99
1.19
------1.54
0.65
0.63
0.61
15.70 %

Table of Contents
Schedule 15

Town of Gilbert, Arizona
Full-time Equivalent Employees by Function
Last Ten Fiscal Years
Function

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Governmental Funds
General government
Management and policy

88.5

95.8

120.0

128.6

131.6

132.6

136.1

142.5

155.8

157.8

Finance and management services

29.0

19.0

19.0

21.0

21.0

25.0

25.5

26.5

28.5

28.5

Court

49.9

51.9

32.9

32.9

32.9

33.9

33.9

33.9

34.1

34.1

Development services

69.6

68.8

73.3

66.7

68.7

83.7

84.5

93.3

94.3

98.3

Police

346.0

349.0

354.0

358.0

369.0

385.5

409.5

429.5

447.5

466.5

Fire

Public safety
197.0

201.0

201.0

203.0

210.0

217.0

216.0

223.0

256.6

264.6

Highways and streets

51.0

58.0

58.0

51.7

51.7

53.7

55.7

55.7

57.7

57.7

Parks and recreation

106.8

121.8

118.7

125.3

126.2

128.3

128.5

169.1

176.4

182.4

Water

118.2

118.0

116.5

125.0

130.0

131.0

133.5

135.7

135.9

136.9

Wastewater

41.7

44.7

45.4

42.5

42.5

43.5

45.5

48.5

49.5

49.5

Environmental services

79.0

83.5

84.0

94.3

96.3

97.3

100.3

101.8

103.8

106.8

26.0

26.0

26.0

26.0

26.0

26.0

26.0

26.0

26.0

26.0

1,202.7

1,237.5

1,248.8

1,275.0

1,305.9

1,357.5

1,395.0

1,485.6

1,566.1

1,609.1

Enterprise Funds

Internal Service Funds
Equipment maintenance
Total
Source: Gilbert Office of Management & Budget

135

Table of Contents
Schedule 16

Town of Gilbert, Arizona
Operating Indicators by Function
Last Ten Fiscal Years
2013
Function
General government:
Management and policy
% of population satisfied with value
received from tax dollar
Number of recruitments
Employee turnover
Legal and court
Case filings
% of cases charged after review
Development services
Building permits issued
Value of permits issued (in millions)
Public Safety:
Police
Number of arrests
Crimes per 1,000 population
Fire
Number of emergency calls
Response time average (enroute to
on-scene) b
Total dispatch time (dispatch to on
scene) b
Highways and streets
Average pavement condition index

2014

2015

a
N/A
148
8.3%

2016

2017

a
N/A
149
9.3%

74%
175
9.7%

2018

2019

71%
156
10.3%

79%
199
10.4%

20,813
74%

21,620
74%

19,102
62%

4,441
$ 746.3

4,278
$ 607.8

6,060
$ 702.5

4,655
$ 441.5

8,360
15.2

8,061
13.2

7,889
13.0

8,275
12.1

7,997
12

5 min
9 sec

20,506
3 min
32 sec
4 min
48 sec

20,903
3 min
25 sec
4 min
44 sec

20,680
3 min
25 sec
4 min
46 sec

22,160
3 min
36 sec
5 min
01 sec

24,672
3 min 53
sec
5 min 08
sec

31,794
72%

28,896
72%

29,499
71%

32,091
70%

29,501
74%

26,147
74%

24,244
70%

3,418
$ 534.4

3,254
$ 472.5

3,364
$ 496.0

3,584
$ 553.8

4,157
$ 532.2

4,607
$ 531.6

8,734
16.5

8,474
16.6

8,900
15.5

8,702
15.3

8,250
15.5

15,509
3 min
47 sec

16,185
3 min
51 sec

17,777
3 min
57 sec

18,923
3 min
55 sec

19,422

N/A

N/A

N/A

2022

N/A
261
14.6%

75%
155
7.5%

N/A

a
N/A
200
9.6%

2021

69%
210
9.8%

77%
110
8.0%

N/A

2020

80

75

75

72

74

72

73

72

72

73

16,277
N/A
52,714

16,440
N/A
52,616

N/A
11,747
62,815

N/A
19,835
69,423

N/A
18,000
71,651

N/A
16,000
98,286

N/A
16,670
113,245

N/A
14,993
133,868

N/A
14,976
34,697

N/A
16,305
122,581

Parks and recreation
Facility reservation requests c
Facility reservations c
Participants in recreation programs d
Transportation
Average daily ridership

635

685

687

669

679

784

668

522

296

322

Water
Daily average water production (mg)
Average # of meters read per month
Number of utility locates

43
71,952
23,277

43
72,712
20,235

43
73,199
20,100

43
82,871
21,197

46
83,945
26,850

47
84,243
27,380

47
84,147
23,157

50
83,650
22,357

54
86,038
29,719

50
91,196
31,943

Wastewater
Daily average wastewater influent (mg)
Annual effluent produced/reused (mg)

12.79
4,667

12.82
4,646

13.21
4,822

14.03
4,815

14.91
4,931

15.41
5,115

16.20
5,784

16.54
5,307

17.32
5,162

17.21
5,852

115,536
18,695

113,965
19,851

112,778
19,418

114,144
19,894

110,520
22,567

113,745
24,058

129,737
21,120

130,713
22,325

137,888
22,252

142,802
19,131

Environmental services
Solid waste tonnage
Recycle tonnage
Source: Various Town departments
a Survey completed every other year
b

Beginning in 2017, the Fire Department began reporting total dispatch time instead of average time enroute to on-scene

c Indicator no longer being tracked; beginning in 2015, tracking actual facility reservations
d Only includes adult sports, youth ball programs, adaptive recreation, and town-sponsored special events.

Effective July 1, 2021, participants are accounted for per session instead of per meeting date.

136

Table of Contents
Schedule 17

Town of Gilbert, Arizona
Capital Asset Statistics by Function
Last Ten Fiscal Years
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

164

180

185

217

224

251

249

263

299

309

10

10

10

10

10

10

11

11

11

11

Highways and streets
Street centerline miles (estimate) a
Traffic control signals

989
177

905
180

1,032
185

1,055
185

908
194

920
201

926
206

943
210

945
214

980
222

Parks and recreation
Total acres of park land, trails, open
space, municipal areas and support
facilities, operated and maintained

653

605

605

605

645

645

645

725

725

693

1,219

1,261

1,304

1,660

1,322

1,335

1,366

1,100

701

710

976

1,006

1,019

1,038

887

896

923

774

795

802

61

66

67

57

56

71

63

62

63

70

Function
Public safety:
Police
Number of police cars
Fire
Fire stations

Water
Miles of water main b, c, d
Wastewater
Miles of wastewater main b, c
Environmental services
Garbage trucks e
Source: Various Town departments
a

The street centerline miles were previously estimated using different methods, such as end of warranty and beginning of Town ownership. Beginning in 2015, the estimate is based on
acceptance letter date.
b
Beginning in 2017, estimates were updated to exclude miles not owned by Gilbert
c
Beginning in 2020, estimates were updated to exclude preliminary miles (Initial Acceptance Letter is not completed)
d
Beginning in 2021, estimates were updated to exclude water mains less than 8" in diameter
e
Prior to fiscal year 2016, wheel loaders were included in the statistic
Note: No capital asset statistics are available for the general government or transportation functions.

137

Table of Contents
Schedule 18

Town of Gilbert, Arizona
Property Value, Construction and Bank Deposits
Last Ten Fiscal Years

Fiscal
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Residential Construction a
Number of
Permits
Value
2,015
1,613
1,668
1,764
1,754
1,604
1,535
1,194
2,161
1,358

$

385,182,885
315,632,904
350,707,421
402,071,499
336,676,752
312,805,353
467,961,355
435,133,652
495,787,159
263,268,046

Commercial Construction a
Number of
Permits
Value
224
284
268
278
264
199
155
208
219
133

$

102,447,825
99,959,286
81,934,987
71,594,349
119,477,874
129,703,582
164,601,167
85,390,836
103,066,452
55,502,862

Other Construction a
Number of
Permits
Value
1,179
1,357
1,428
1,542
2,139
2,804
2,751
2,876
3,680
3,164

$

46,773,456 $
56,890,360
63,344,257
80,164,565
76,023,423
89,093,501
113,774,277
87,276,267
103,670,431
122,769,529

Secondary
Assessed
Property Value b
1,675,360,422
1,594,806,737
1,829,471,839
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Limited
Property
Value b
N/A
$
N/A
N/A
1,845,325,449
1,979,359,269
2,105,762,268
2,256,162,227
2,428,289,285
2,618,569,519
2,807,360,551

Maricopa County
Bank Deposits c
65,485,982,000
70,253,713,000
76,889,448,000
84,014,143,000
92,567,543,000
98,288,781,000
107,879,366,000
132,017,181,000
158,003,339,000
178,327,411,000

Sources:
Development Services Department
b
Maricopa County Assessor's Office
c
Federal Deposit Insurance Corporation
a

Note: In accordance with Proposition 117, The Arizona Property Tax Assessed Valuation Amendment, property taxes are calculated based on the limited property value
beginning with tax year 2015.

138

Table of Contents
Schedule 19

Town of Gilbert, Arizona
System Development Fees
Fiscal Year 2022

System Development Fee Type

Police

Beginning

System
Development

Other

Balance

Fees Collected

Revenue

$

1,843,300

$

1,598,823

$

Ending
Expenditures

68,550

$

(5,375,008) a

(5,600,885)

1,847,922

General Government

(3,461,009)

2,125,348

1,335,661

Parks and Recreation

26,112,913

8,611,147

778,781

(3,235,677)

32,267,164

Roads

9,133,752

3,744,010

265,032

(1,899,551)

11,243,243

Traffic Signal

13,192,320

1,342,469

353,396

(688,416)

14,199,769

Water

(1,784,072)

5,177,016

-

(9,862,097)

(6,469,153) b

Water Resources

(19,536,352)

4,457,932

-

(2,326,848)

(17,405,268) b

Wastewater

22,716,849

3,022,095

370,283

(11,868,455)

14,240,772

(32,052,673) $

45,662,608

$

42,616,816

Wastewater system development fee - Greenfield $

2,586

$

31,926,762

$

3,171,703

(1,622,045)

2,961,089

Fire

Totals

-

(549,584) $

Balance

-

$

-

Equivalent Residential Unit

Wastewater system development fee - Neely

$

157

Source: Gilbert Finance & Management Services Department
a The negative ending balances for the fire and general government system development fees are funded by the general fund.

The general fund had a cash balance of
$236,319,136 at June 30, 2022.
b The negative ending balance for the water and water resources system development fees are funded by the water fund. The water fund had a cash balance of
$617,466,641

139

Table of Contents
Schedule 20

Town of Gilbert, Arizona
Property Tax Levies and Collections
Last Ten Fiscal Years

Fiscal
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Tax Levy
$

19,253,745 $
18,327,289
19,487,085
19,495,256
20,913,149
21,667,785
22,353,420
24,017,440
25,917,731
27,784,120

County
Resolutions
(99,396) $
(57,876)
(72,483)
(32,290)
(80,844)
(53,647)
(44,819)
(28,727)
(28,414)
(87,560)

Initial Year Collections
Net
Current
Tax Levy
Collections
19,154,349 $
18,269,413
19,414,602
19,462,966
20,832,305
21,614,138
22,308,601
23,988,713
25,889,317
27,696,560

18,962,640
18,056,441
19,230,809
19,286,314
20,645,301
21,411,196
22,129,563
23,702,115
25,661,002
27,432,417

Percent
Of Levy
99.00 %
98.83
99.05
99.09
99.10
99.06
99.20
98.81
99.12
99.05

140

County
Resolutions
$

(143,945) $
(89,343)
(128,555)
(83,121)
(141,929)
(86,816)
(99,817)
(38,012)
(28,414)
(87,560)

Cumulative Collections
Net
Delinquent
Total
Tax Levy
Collections
Collections
19,109,800 $
18,237,946
19,358,530
19,412,135
20,771,220
21,580,969
22,253,603
23,979,428
25,889,316
27,696,560

144,108 $
179,463
126,706
124,981
125,051
168,618
119,943
274,286
201,793
-

19,106,748
18,235,904
19,357,515
19,411,295
20,770,352
21,579,814
22,249,506
23,976,401
25,862,795
27,432,417

Percent
of Levy
99.98 %
99.99 %
99.99
100.00
100.00
99.99
99.98
99.99
99.90
99.05

Table of Contents
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Gilbert, Arizona
Finance & Management Services
50 E. Civic Center Drive
Gilbert, AZ 85296
(480) 503-6000
gilbertaz.gov