City of Peoria, Arizona FY22 Annual Comprehensive Financial Report (ACFR) Fiscal Year Ended June 30, 2022 Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2022 City of Peoria, Arizona City Council Cathy Carlat, Mayor Bill Patena, Vice Mayor Vicki Hunt, Mayor Pro-Tem Jon Edwards, Councilmember Brad Schafer, Councilmember Denette Dunn, Councilmember Michael Finn, Councilmember Administrative Staff Jeff Tyne, City Manager Andrew Granger, Deputy City Manager Katie Gregory, Deputy City Manager Erik Strunk, Deputy City Manager Prepared By Finance Department Kevin Burke, Chief Financial Officer Sean Kindell, Deputy Finance Director City of Peoria Core Values “The City of Peoria team members share a commitment to provide quality service for our community.” P Professional Demonstrates professional skills and knowledge needed to perform the job; keeps informed of developments in the professional field and applies this knowledge to the job; encourages and supports the development of subordinate personnel. E Ethical Maintains the highest standards of personal integrity, truthfulness, honesty, and fairness in carrying out public duties; avoids any improprieties; trustworthy, maintains confidentiality; never uses City position or power for personal gain. O Open R Responsive Communicates effectively orally and in writing; involves appropriate individuals and keeps others informed; acts as a team member; participates and supports committees/boards/commissions/task forces; approachable; receptive to new ideas; supports diversity and treats others with respect; actively listens. Consistently emphasizes and supports customer service; takes responsibility to respond to all customers in a prompt, efficient, friendly, and patient manner; represents the City in an exemplary manner with civic groups/organizations and the public. I Innovative A Accountable Demonstrates original thinking, ingenuity, and creativity by introducing new ideas or courses of action; supports innovative problem-solving by identifying and implementing better methods and procedures; takes responsible risks; demonstrates initiative and “follows through” on development and completion of assignments. Accepts responsibility; committed to providing quality service to our community; plans, organizes, controls and delegates appropriately; work produced is consistent and completed within required timeframes; implements or recommends appropriate solutions to problems; acknowledges mistakes; manages human and financial resources appropriately. Introductory Section CITY OF PEORIA, ARIZONA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2022 TABLE OF CONTENTS I. INTRODUCTORY SECTION Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting City of Peoria Organizational Chart Principal Officials of the City City Council Pictures and District Map Page v xiii xiv xv xvi II. FINANCIAL SECTION Independent Auditors’ Report 1 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 5 B. BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position Statement of Activities 19 20 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances Of Governmental Funds to the Statement of Activities - Governmental Activities Budgetary Comparison Statements - General Fund and Major Special Revenue Funds: General Fund Half-Cent Sales Tax Fund Highway User Revenue Fund Transportation Sales Tax Fund Other Grants Fund 22 25 26 29 30 31 33 34 35 Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Statement of Cash Flows 36 38 40 Fiduciary Fund Financial Statements Statement of Net Position Statement of Changes in Fiduciary Net Position Notes to the Financial Statements 44 45 47 i CITY OF PEORIA, ARIZONA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2022 C. REQUIRED SUPPLEMENTARY INFORMATION Schedule of the City’s Proportionate Share of the Net Pension/OPEB Liability Cost-Sharing Pension Plan Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Schedule of Changes in Net OPEB Liability and Related Ratios Schedule of Pension/OPEB Contributions Notes to Pension/OPEB Plan Schedules Page 87 88 90 92 94 D. SUPPLEMENTARY INFORMATION - COMBINING FUND FINANCIAL STATEMENTS AND BUDGETARY SCHEDULES Major Governmental Funds Other Than General Fund and Special Revenue Funds Budgetary Comparison Schedules – Major Debt Service Fund and Major Capital Projects Fund General Obligation Bonds Debt Service Fund Development Fee Fund Non-Bond Capital Projects Fund 97 98 99 Non-Major Governmental Funds Combining Statements Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Budgetary Comparison Schedules Public Transit Fund Municipal Development Authority (MDA) Debt, Debt Service Fund Community Facilities District (CFD) Bonds Debt Service Fund Non-Bond Debt Service Fund Community Facilities District (CFD) Bonds Capital Projects Fund General Obligation Bonds Capital Projects Fund 102 104 106 107 108 109 110 111 Internal Service Funds Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Combining Statement of Cash Flows 113 114 115 Fiduciary Funds Combining Statement of Net Position Combining Statement of Changes in Fiduciary Net Position ii 117 118 CITY OF PEORIA, ARIZONA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2022 III. STATISTICAL SECTION - Unaudited Net Position By Component Changes in Net Position Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds City Transaction Privilege Taxes By Category Direct and Overlapping Sales Tax Rates Sales Tax Payers - By Category Assessed Values By Property Classification Comparative Assessed Values Direct and Overlapping Property Tax Rates Direct and Overlapping Property Tax Levies Limited Property Value Top Ten Tax Payers Property Tax Levies and Collections Utility Statistical Data Outstanding Debt By Type Ratio of Net General Bonded Debt to Full Cash Value and Net Bonded Debt Per Capita Direct and Overlapping General Obligation Bonded Debt – Current Fiscal Year Direct and Overlapping Governmental Activities Debt – Current Fiscal Year Direct and Overlapping Governmental Activities Debt – Last Ten Fiscal Years Legal Debt Margin Pledged Revenue Coverage – Excise Tax and State Shared Revenue Debt Obligations - Governmental Portion Pledged Revenue Coverage – Water & Wastewater Revenue Bonds Pledged Revenue Coverage – Special Assessment Bonds Special Assessment Collections Demographic and Economic Statistics Major Employers Within the City Authorized Full-time Equivalent City Government Employees By Function Operating Indicators By Function/Program Capital Asset Statistics By Function/Program Table Page I II III IV V VI VII VIII IX X XI XII XIII XIV XV 121 122 124 125 126 127 128 129 130 131 132 133 134 135 138 XVI 139 XVII 140 XVIII 141 XIX XX 142 143 XXI XXII XXIII XXIV XXV XXVI 144 145 146 147 148 149 XXVII XXVIII XXIX 150 151 152 IV. CONTINUING DISCLOSURES Continuing Disclosures Annual Report 153 iii iv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Peoria Arizona For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO xiii xiv City of Peoria Principal Officials of the City Fiscal Year 2022 Cathy Carlat Mayor Bill Patena Vicki Hunt Jon Edwards Vice Mayor Mayor Pro Tem Councilmember Michael Finn Brad Shafer Denette Dunn Councilmember Councilmember Councilmember Jeff Tyne City Manager Erik Strunk Katie Gregory Andrew Granger Deputy City Manager Deputy City Manager Deputy City Manager Marylou Stephens Vanessa Hickman Lori Dyckman Arts, Culture and Library Services Director City Attorney City Clerk Briana Cortinas Kelli Kincaid Adina Lund Director of Communications Chief Community Affairs Officer Development and Engineering Director Jennifer Stein Kevin Burke Gary Bernard Economic Development Services Director Finance & Budget Director Fire Chief Christine Nickel Kris Dalmolin Thomas Adkins Human Resources Director Information Technology Director Governmental Affairs Director George Anagnost Chris Hallett Chris Calcaterra Municipal Judge Neighborhood & Human Services Director Parks, Recreation & Community Facilities Director Chris Jacques Art Miller Jay Davies Planning and Community Development Director Police Chief Public Works Director Cape Powers Water Services Director City of Peoria Council Districts Lake Pleasant Mayor Cathy Carlat Mesquite Mayor Pro Tem Vicki Hunt Acacia District 67th Ave. Vice Mayor Bill Patena Ironwood District Carefree Hwy Willow Ironwood Councilmember Michael Finn Palo Verde District Councilmember Denette Rae Dunn Pine District 115th Ave. Councilmember Brad Shafer Mesquite District Bell Rd. Palo Verde Pine Councilmember Jon Edwards Willow District Youth Council Liaison Youth Council Liaison Arizbeth Fierro Savana Rodriguez xvi Northern Ave. Acacia 67th Ave. Peoria Ave. Financial Section CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of City Council City of Peoria, Arizona Peoria, Arizona Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information and budgetary comparison schedules for the General Fund and Major Special Revenue Funds of the City of Peoria, Arizona (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective change in financial position, and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter – Change in Accounting Principle As discussed in Note 15 to the financial statements, adopted a new accounting principle for general debt previously recorded in the Stormwater Fund. This change resulted in a restatement of beginning net position in the governmental activities, Stormwater Enterprise Fund, and the Business-Type Activities. Our opinions are 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. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 1 The Honorable Mayor and Members of City Council City of Peoria, Arizona In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 The Honorable Mayor and Members of City Council City of Peoria, Arizona Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedule of the City’s proportionate share of the net pension and OPEB liability and contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 The Honorable Mayor and Members of City Council City of Peoria, Arizona Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Phoenix, Arizona December 22, 2022 4 Management’s Discussion & Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Peoria, Arizona (the City), we offer this narrative overview and analysis of the financial activities of the City of Peoria, Arizona for the fiscal year ended June 30, 2022. This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any material deviations from the financial plan (the approved annual budget), and (5) identify individual fund issues or concerns. This discussion and analysis (MD&A) has a different focus and purpose than the transmittal letter presented on pages v-xii of this report. It is designed to be read in conjunction with the transmittal letter as well as the financial statements and the accompanying notes to the financial statements. The City also issues separate financial reports, including management’s discussion and analysis, for the Vistancia Community Facilities District, Vistancia West Community Facilities District, Vistancia North Community Facilities District, Mystic at Lake Pleasant Heights Community Facilities District, the Employee Benefit Trust, and the Workers’ Compensation Trust, which are blended component units of the City. Financial Highlights  The City’s total net position increased $69.0 million, 4.2%, in fiscal year 2022, an increase of $66.2 million, 7.5%, in governmental activities and an increase of $2.8 million, 0.4%, in business-type activities.  Total net position of the City is $1,709.7 million, of which $117.9 million is unrestricted.  At June 30, 2022, total fund balance of the governmental funds was $330.4 million, an increase of $52.8 million from the previous year. Of this, $99.0 million or 51.0% of General Fund expenditures for fiscal year 2022 was unassigned and available for spending at the government’s discretion.  General Fund revenues (on a budgetary basis) were higher than budgeted inflows by $22.2 million for fiscal year 2022. Budgetary basis expenditures of the General Fund were 87.1% ($29.2 million in savings) of the final budgeted expenditures as the City continued cost saving processes due to the pandemic and uncertainty about future revenues.  In November 2022, Moody’s Investors Service assigned the City a Aaa issuer rating. The rating recognized the financial strength of the City and the robust financial policies and conservative management. OVERVIEW OF THE FINANCIAL STATEMENTS As pictured in the following illustration, the financial section of the Annual Comprehensive Financial Report (ACFR) for the City of Peoria, Arizona consists of this discussion and analysis, the basic financial statements, other required supplementary information and other non-required financial schedules. The basic financial statements include the government-wide financial statements, fund financial statements, including the budgetary statements for the general fund and major special revenue funds, and notes to the financial statements. Other required supplementary information includes the schedules and notes related to pension and OPEB requirements. The additional non-required information includes combining schedules and other supplementary schedules presented after the basic financial statements (Combining Statements and Statistical Sections of this report). 5 Required Components of the Annual Financial Report Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information Governmentwide Financial Statements Fund Financial Statements Notes to the Financial Statements Summary Detail Government-wide Financial Statements The government-wide financial statements are designed to provide a broad overview of the City’s finances in a manner similar to those used by private businesses. All of the activities of the City, except those of a fiduciary nature, are included in these statements. The activities of the City are broken into two columns on these statements – governmental activities and business-type activities. A total column for the City is also provided.  The governmental activities include the basic services of the City including general government (administration), culture and recreation, public safety, development services, highways and streets, public works, and human services. These activities are generally supported by taxes and general revenues.  The business-type activities include the private sector type activities such as the water, wastewater solid waste, and storm drain utilities, and the stadium. These activities are primarily supported through user charges or fees. The statement of net position presents information on all of the City’s assets and liabilities (excluding fiduciary funds), both current and long-term and deferred inflows/outflows of resources, with the difference reported as net position. The focus on net position is designed to be similar to the emphasis for businesses. Over time, increases or decreases in net position may serve as a useful indicator of how the financial position of the City may be changing. Increases in net position may indicate an improved financial position; however, even decreases in net position may reflect a changing manner in which the City may have used previously accumulated funds (i.e. cash funding of capital projects). To assess the overall health of the City, other indicators, including non-financial indicators such as the City’s property tax base and condition of its infrastructure, should also be considered. The statement of activities presents information showing how the City’s net position changed over the most recent fiscal year. Since full accrual accounting is used for the government-wide financial statements, all changes to net position are reported at the time the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. This statement also focuses on both the gross and net costs of the various functions of the City, based only on direct functional revenues and expenses. This is designed to show the extent to which the various functions depend on general taxes and revenues for support. 6 Fund Financial Statements Also presented are fund financial statements for governmental funds, proprietary funds and fiduciary funds. The fund financial statements focus on major funds of the City. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or conditions. Funds are used to ensure and demonstrate compliance with finance-related legal requirements as well as for managerial control to demonstrate fiduciary responsibility over the assets of the City. Governmental funds – Governmental funds are used to account for most of the City’s basic services. These are essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmental activities column on the government-wide financial statements, these fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs. Since the governmental fund financial statements focus on near-term spendable resources, while the governmental activities on the government-wide financial statements have a longer-term focus, it may be useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. To facilitate this comparison, reconciliations of the differences between the two are provided immediately following the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances. The City maintains several individual governmental funds organized according to their type (special revenue, debt service, and capital projects). Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Highway User Revenue Fund, Transportation Sales Tax Fund, GO Bond Debt Service Fund, Development Fee Fund, Non-Bond Capital Projects Fund, and Other Grants Fund which are considered to be major funds of the City. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements. Proprietary funds – Proprietary funds are used to account for services primarily supported by user fees. The proprietary fund financial statements are prepared with the same long-term focus as the governmentwide financial statements. The City maintains the following two types of proprietary funds. Enterprise funds are used for activities that primarily serve customers outside the governmental unit. The enterprise funds generally provide information similar to the business-type activities column of the government-wide financial statements, but provide more detail and additional information such as cash flows. Any reconciliation necessary between the enterprise funds and the business-type activities column of the government-wide financial statements is provided on the face of the fund statements. The City’s enterprise funds are the Water, Wastewater, Storm Drain and Solid Waste utilities, as well as the sports complex (Stadium Fund). All of the enterprise funds are considered to be major funds of the City. Internal service funds are used for activities where the primary customer is the City itself. Because the primary customers of the internal service funds are the governmental activities, the assets, liabilities, and deferred outflows/inflows of resources of those funds are included in the governmental activities column of the government-wide statement of net position. The costs of internal service funds are allocated to the various user functions on the government-wide statement of activities. The internal service funds are combined into a single column on the proprietary fund statements. Additional detail of the internal service funds is provided in combining statements. The internal service funds of the City include the Motor Pool, Self-Insurance, Facilities Maintenance, and Information Technology Funds. 7 Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of others. Fiduciary funds are not included in the government-wide financial statements because the resources of those funds are not available to support programs of the City. The fiduciary fund statements are prepared on the same basis as the government-wide and proprietary fund statements. Notes to the financial statements – The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and should be read with the financial statements. Required supplementary information other than MD&A – Schedules for pension/OPEB plans have been provided as required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS The following tables, graphs and analysis discuss the financial position and changes to the financial position for the City as a whole as of and for the year ended June 30, 2022, with comparative information for the previous year. Net Position Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed Statement of Net Position of the City for June 30, 2022, compared to the prior year. Statement of Net Position As of June 30 (in millions of dollars) Governmental Activities 2021 2022 Restated Business-type Activities 2021 2022 Restated Total Primary Government 2022 Current and other assets Capital assets $ 442.9 939.8 $ 355.9 938.6 $ 170.5 737.6 $ 137.6 727.2 Total assets 1,382.7 1,294.5 908.1 864.8 2,290.8 2,159.3 Total deferred outflows of resources 79.5 56.0 4.6 4.7 84.1 60.7 Other liabilities Long-term liabilities outstanding 49.7 412.9 31.7 434.2 10.8 129.8 15.1 93.4 60.5 542.7 46.8 527.6 Total liabilities 462.6 465.9 140.6 108.5 603.2 574.4 Total deferred inflows of resources 53.3 4.5 8.7 0.4 62.0 4.9 732.2 133.0 81.1 $ 946.3 723.9 122.6 33.6 $ 880.1 640.4 48.9 74.1 $ 763.4 644.7 32.9 83.0 $ 760.6 1,372.6 181.9 155.2 $ 1,709.7 1,368.6 155.5 116.6 $ 1,640.7 Net position: Net investment in capital assets Restricted Unrestricted Total net position $ 613.4 1,677.4 2021 $ 493.5 1,665.8 The net position of the City increased $69.0 million in fiscal year 2022. Net position of governmental activities increased $66.2 million, while the business-type activities increased $2.8 million. Increases in the Wastewater Utility Fund and Stadium Fund were offset be decreases in the other business-type funds primarily driven by inflationary factors. Net position consists of three components. The largest portion of net position, $1,372.6 million reflects the City’s investment in capital assets net of accumulated depreciation and any related outstanding debt used to acquire or construct those assets. The City uses these capital assets to provide services to its residents. Consequently, it is not the City’s intention to sell these assets, and they are therefore not available for future spending. Although the capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves are not intended to be used to liquidate these liabilities. 8 The $181.9 million restricted portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The third portion consists of Unrestricted Net Position of $155.2 million. This category of net position may be used to meet the City’s ongoing obligations to residents and creditors. Unrestricted net position is the balance of net position remaining after calculating the other two categories discussed above. Changes in Net Position The following table compares the government-wide revenue and expenses for the current and previous fiscal year. Cha nges i n Net Pos iti on As of June 30 (in millio ns o f do llars) Governmenta l Acti vi ti es 2022 2021 REVENUES: Program revenues : Fees , fi nes & cha rges for s ervi ces Opera ti ng gra nts a nd contributi ons Ca pi ta l gra nts a nd contributions Genera l revenues Prope rty ta xes Sa l es a nd use ta xes Fra nchi s e ta xes Sta te sha red s a l es ta x Urba n revenue s ha ri ng Auto-i n-l i eu ta xes Investment ea rnings (l oss es ) Mi s cel l a neous Tota l re venue s EXPENSES: Program a cti vi ti es : Governme nta l a cti vi ti es : Genera l government Cul ture a nd recrea tion Publ i c sa fety Devel opment s ervi ces Hi ghwa ys a nd s tree ts Publ i c works Huma n s ervices Interes t expens e on debt Busi nes s -type a cti vi ti es : Wa ter uti l i ty Wa stewa ter uti l i ty Sol i d Wa ste uti l i ty Sta di um Storm Dra i n uti li ty Tota l expens es Excess (defi ci t) before tra nsfers Tra ns fers a nd Speci a l Items Increas e (decrea s e) in net posi ti on Net posi ti on - begi nni ng, a s res ta ted Net posi ti on - endi ng $ 36.3 26.2 36.5 $ 33.9 26.7 33.5 Bus iness -type Acti vi ti es 2022 2021 $ 100.8 19.9 $ 97.9 29.7 Tota l Pri ma ry Government 2022 2021 $ 137.1 26.2 56.4 $ 131.8 26.7 63.2 31.4 125.5 5.0 26.8 24.8 8.3 (6.6) 3.6 317.8 29.9 113.9 5.0 20.2 25.2 8.3 0.5 3.2 300.3 (3.0) 117.7 0.2 127.8 31.4 125.5 5.0 26.8 24.8 8.3 (9.6) 3.6 435.5 29.9 113.9 5.0 20.2 25.2 8.3 0.7 3.2 428.1 29.3 39.0 95.6 7.2 59.8 7.5 3.5 6.3 26.3 31.4 101.3 6.4 53.3 7.2 2.1 5.2 - - 29.3 39.0 95.6 7.2 59.8 7.5 3.5 6.3 26.3 31.4 101.3 6.4 53.3 7.2 2.1 5.2 - - 57.1 32.6 16.4 7.3 4.9 47.9 29.0 15.0 6.9 3.9 118.3 (0.6) 3.4 2.8 760.6 763.4 102.7 25.1 8.3 33.4 727.2 $ 760.6 57.1 32.6 16.4 7.3 4.9 366.5 69.0 47.9 29.0 15.0 6.9 3.9 335.9 92.2 69.0 1,640.7 $ 1,709.7 92.2 1,548.5 1,640.7 248.2 69.6 (3.4) 66.2 880.1 $ 946.3 233.2 67.1 (8.3) 58.8 821.3 $ 880.1 9 $ $ For fiscal year 2022, total governmental activities revenues increased $17.5 million while total businesstype activities revenues decreased $10.1 million. Expenses increased $15.0 million for the governmental activities and increased $15.6 million for the business-type activities. The increase in expenses was primarily due to inflationary factors. The general revenues of governmental activities increased $12.6 million primarily from local sales and use taxes and state shared sales tax which continued their strong growth from the prior year. This was partially offset by investment losses of $6.6 million for fiscal year 2022 as rising interest rates caused existing investments to lose value. The program revenues of business-type activities decreased by $6.9 million primarily due to a decrease in developer contributions. The following graph shows the functional revenues and expenses of governmental activities to demonstrate the extent to which the governmental functions produce direct revenues to offset the program costs. It should be noted that this is not intended to represent full cost allocation to these functions. Expenses not covered by direct program revenues are covered by general revenues of the City, primarily taxes and state shared revenues. In the governmental activities, the program revenues of $99.0 million are 39.9% of the governmental activities expenses for fiscal year 2022, down from 40.4% in fiscal year 2021. In the business-type activities, program revenues of $120.7 million are 102.0% of the business-type expenses for fiscal year 2022. This compares to $127.6 million and 124.2% in fiscal year 2021. Governmental activities account for 73.0% of the total revenues of the City and 67.7% of the total expenses in fiscal year 2022. These percentages were 70.1% and 69.4% respectively in fiscal year 2021. 10 As seen in the following graph, one of the largest financing sources for the City in fiscal year 2022 is charges for services (31.5%), primarily because this is the major funding source of the business-type activities (85.6% of business-type total revenues in fiscal year 2022). The major funding sources of the governmental activities are property taxes, sales/use taxes, contributed capital and state shared revenues. Property taxes increased from fiscal year 2021 with an increase in assessed value plus growth in the City. The total City (primary plus secondary) tax rate did not change in fiscal year 2022 compared to the previous year. Total government-wide expenses (not including transfers out) of the City increased $30.6 million, 9.1% in fiscal year 2022. As mentioned above, this was primarily due to inflationary factors. As shown in the following Government-Wide Functional Expenses graph, business-type activities account for 32.3% of the functional expenses of the City for fiscal year 2022, while governmental activities account for 67.7% of the functional expenses. For the governmental activities, the largest users of resources are public safety (26.1% of total expense, 38.5% of governmental expenses), highways and streets (16.3% of total expenses, 24.1% of governmental expenses), culture and recreation (10.6% of total expenses, 15.7% of governmental expenses), and general government (8.0% of total expenses, 11.8% of governmental expenses). 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS The City maintains fund accounting to demonstrate compliance with budgetary and legal requirements. The following is a brief discussion of financial highlights from the fund financial statements. Governmental funds The focus of the governmental fund financial statements is to provide information on near-term inflows, outflows and balances of spendable resources. All major governmental funds are discretely presented on these financial statements, while the non-major funds are combined into a single column. Combining statements for the non-major funds may be found in the section of the ACFR immediately following the Required Supplementary Information. Although the Highway User Revenue Fund, Transportation Sales Tax Fund, and Development Fee Fund do not meet the GASB 34 quantitative criteria of a major fund, the City has chosen to present them as major funds due to local significance or outstanding debt. The fund balance of the governmental funds is $330.4, an increase of $52.8 million from the previous year. Of this, $152.7 million (an increase of $44.3 million from the previous year) is classified as Nonspendable or Restricted because it is not appropriable for expenditure or is legally segregated for a specific future use. The increase is primarily due to bond proceeds that are restricted for capital projects. An additional $78.7 million of the governmental fund balance (an increase of $12.7 million from the previous year) has been committed or assigned for specific purposes by council or administrative action. These commitments include various stabilization reserves ($55.7 million), debt service reserves ($1.0 million), capital projects ($13.1 million) and arts capital and various other purposes ($8.9 million). The remaining $99.0 million of governmental fund balance is classified as Unassigned. This balance may serve as a useful indicator of a government’s net resources available for spending at the end of the year. By Council policy, these resources are used to fund one-time needs of the City including capital facilities and transportation improvements. The unassigned fund balance decreased by $4.3 million compared to the prior year. Governmental Funds - Fund Balance 180 160 FY21 Millions 140 FY22 120 100 80 60 40 20 - 12 The General Fund is the chief operating fund of the City and accounts for many of the major functions of the government including public safety, parks and recreation, community development and general administrative services. General Fund revenues increased $16.2 million over the prior fiscal year. Local sales tax revenues increased $9.9 million (10.7%) in fiscal year 2022 over fiscal year 2021. Retail sales tax accounted for 56.9% of local sales tax and increased 9.0% over fiscal year 2021. Sales tax on restaurants and bars also saw a significant increase (17.9%) over fiscal year 2021 and accounted for 13.9% of local sales taxes. State shared sales tax increased $6.6 million or 32.8% over fiscal year 2021. Primary property taxes increased $343 thousand or 7.1% over the prior fiscal year reflecting the continued growth and increased property values in the City. General Fund expenditures increased $51.3 million in fiscal year 2022 over fiscal year 2021. $35 million of the increase was due to additional payments made to the Public Safety Personnel Retirement System to reduce the unfunded pension liability. Additionally, in January 2022 the City Council approved adding a total of 36 positions to police and fire. Those costs are reflected in the increase as well. The Highway User Revenue Fund (HURF Fund) is required by state statute to track the receipt of the state allocation of gasoline taxes and other state revenues shared with local governments that are required to be used for transportation purposes. Also, there is a sales tax on utilities and property tax revenues from streetlight improvement districts included in this fund. Revenues increased by $746 thousand while expenditures increased by $270 thousand in fiscal year 2022. Fund balance increased $1.5 million in fiscal year 2022. The Transportation Sales Tax Fund tracks the collection and expenditure of the 0.3% voter approved sales tax to address transportation issues. Revenues in this fund increased $1.2 million while expenditures decreased $4.2 million. Sales tax revenues continued to grow while capital project spending was reduced due to conservative budgeting related to uncertainty from the pandemic. The fund balance increased $4.5 million in fiscal year 2022. All fund balance in this fund is restricted. The Development Fee Fund, which collects governmental impact fees for parks and recreational facilities, public safety, and streets and intersections had a decrease in revenues of $3.0 million in fiscal year 2022 as development activity slowed and investments lost value. Expenditures increased $2.4 million in fiscal year 2022 following a significant decrease in the prior year. Fund balance decreased $1.1 million versus the prior year. All fund balance in this fund is restricted. The GO Bond Debt Service Fund accounts for the payment of general obligation bonds and the related interest. Revenues in this fund increased by $1.1 million due to increased property valuations and growth. The Non-Bond Capital Projects Fund primarily accounts for reimbursements for shared projects with other governments and the expenditures are mostly for street related projects. The Other Grants Fund primarily accounts for federal grant revenues and expenditures were mostly in public safety for fiscal year 2022. Covid relief funding accounted for the majority of the activity in this fund in fiscal year 2022. All non-major governmental funds of the City are combined into one column on the governmental fund statements. Proprietary funds The proprietary fund financial statements are prepared on the same accounting basis and measurement focus as the government-wide financial statements but provide additional detail since each major enterprise fund is shown discretely. Although the Stadium Fund does not meet the quantitative criteria of a major fund, the City has chosen to present this fund as a major fund due to local significance. Total net position of the enterprise funds increased $2.0 million in fiscal year 2022. A restatement of $4.0 million was made to the Storm Drain Utility Fund to account for a change in treatment for loan proceeds that are a general obligation of the City but are being used to construct a storm drain project. Net 13 investment in capital assets decreased $4.2 million due to depreciation and financing of new projects. Net position restricted for capital projects increased by $15.6 million due to proceeds from revenue bond issuance. Unrestricted net position decreased by $9.7 million. In accordance with the City’s Principles of Sound Financial Management, the City continues to maintain appropriate levels of stabilization reserves. Operating revenues of the enterprise funds increased $2.9 million in fiscal year 2022. Increases in the other funds were partially offset by a decrease of $1.5 million in the Water Utility Fund. The decrease was primarily due to a return to more normal weather patterns after an extremely hot and dry fiscal year 2021. Operating expenses of the enterprise funds increased $15.6 million in fiscal year 2022 primarily due to high inflation. The changes in operating revenues and expenses discussed above resulted in an enterprise funds operating loss of $16.0 million in fiscal year 2022 following an operating loss of $3.2 million in the prior year. The following graph shows the operating revenues and expenses for the enterprise funds for fiscal year 2022. Fiscal Year 2022 Enterprise Fund Operating Revenues and Expenses Millions 60 50 Revenues 40 Expenses 30 20 10 0 Water Wastewater Solid Waste Stadium Storm Drain BUDGETARY HIGHLIGHTS The City’s annual budget is the legally adopted expenditure control document of the City. Budgetary comparison statements, required for the General Fund and all major special revenue funds, may be found on pages 30-35. These statements compare the original adopted budget, the budget as amended throughout the fiscal year, and the actual expenditures prepared on a budgetary basis. Budgetary schedules for the other governmental funds are also presented on pages 97-99, and pages 106-111. General Fund revenues of $185.8 million, on a budgetary basis, exceeded budgeted revenues of $163.6 million by $22.2 million while budgetary basis expenditures of $197.7 million were 87.1% of final budgeted amounts. Revenues, on a budgetary basis, were less than budgeted revenues in charges for services and investment earnings. There were no expenditure overages for any of the functional departmental categories. During the fiscal year, the original General Fund expenditures and contingencies budget of $230.8 million was reduced by $3.8 million to the final expenditure and contingencies budget of $227.0 million. 14 Notable budgetary transfers during the year were as follows:     $10.8 million transfer from the Half Cent Fund to the General Fund for the public safety subsidies. $4.0 million transfer from the Half Cent Fund to the Stadium Fund as a subsidy in support of the Peoria Sports Complex. $1.7 million transfer from the Transportation Sales Tax Fund to the Public Transit Fund in support of the transit system. Various transfers to the debt service funds to meet debt service requirements. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As of June 30, 2022, the City had $1.4 billion invested in various capital assets, net of accumulated depreciation and related debt. The capital assets of the City (net of depreciation, but not capital debt) are $1.7 billion. This is a net increase of $11.6 million from June 30, 2021. Net capital assets of businesstype activities increased $10.4 million while governmental activities increased $1.2 million. Notable additions to capital assets during the fiscal year included the following:     The City continued work with the City of Glendale to expand the Pyramid Peak Water Treatment Plant spending $15.7 million in fiscal year 2022 bringing the total for the project to $55.5 million. The City invested $6.5 million into new construction and improvements to streets around the City. The City spent $6.0 million for expansion of the Beardsley Water Reclamation Facility in fiscal year 2022 bringing the total for the project to $11.0 million. The City spent $3.5 million toward construction of a new operations building at the Jomax Water Reclamation Facility. The following table provides a breakdown of the capital assets of the City at June 30, 2022, and 2021. Additional information on the City’s capital assets may be found in Note 6. Capital Assets at June 30 (Net of depreciation) (in millions of dollars) Governmental Activities 2022 2021 Buildings and building improvement Equipment; Furniture Vehicles Surface water system Street system Park system Water system Water rights Wastewater system Land Work in progress Total $ 102.0 3.6 14.1 268.8 101.2 425.2 24.9 $ 939.8 $ 105.3 4.8 13.4 269.3 97.6 419.4 28.8 $ 938.6 Business-type Activities 2022 2021 $ 45.7 2.8 12.6 71.8 246.7 9.0 249.1 18.8 81.1 $ 737.6 $ 48.0 3.4 14.0 65.1 252.3 9.3 250.9 18.8 65.4 $727.2 Total Primary Government 2022 2021 $ 147.7 6.4 26.7 71.8 268.8 101.2 246.7 9.0 249.1 444.0 106.0 $ 1,677.4 $ 153.3 8.2 27.4 65.1 269.3 97.6 252.3 9.3 250.9 438.2 94.2 $ 1,665.8 The City has adopted a ten year capital improvement plan budgeted at $1,082.8 million, including $284.9 million in fiscal year 2023. Anticipated funding for this plan for fiscal year 2023 is through a combination of impact fees, utility revenue bonds, general obligation bonds, operating revenues, City and County 15 transportation sales taxes and other outside funding sources. The estimated operating budget impact of the capital improvement program over the next five fiscal years is expected to be $19.7 million. The capital improvement plan is updated annually as part of the City’s budget process. Long-term Debt The City’s outstanding long-term debt (due in more than one year), including bonds and loans, compensated absences, and deferred bond premiums was $340.0 million at June 30, 2022. Of this total, $231.8 million was in governmental activities and $108.2 million was in business-type activities. The City’s outstanding debt (due in more than one year excluding claims and net pension liability) increased by $73.7 million in fiscal year 2022. This increase is related to new bond issuances and draws on WIFA loans. Of the total outstanding bonds and loans of $338.8 million, $165.7 million is general obligation bonds or loans backed by the full faith and credit of the City. The outstanding debt also includes $23.5 million in Community Facilities District bonds where the City has no obligation for payment. All other outstanding debt is secured by pledges of specific revenue sources of the City. The State constitution imposes certain debt limitations on the City of six percent (6%) and twenty percent (20%) of the assessed valuation of the City. Additional information on the debt limitations and capacities may be found in Table XX in the statistical section of this report. The following schedule shows the outstanding debt of the City (both current and long-term, excluding premium, net pension liability and claims payable) as of June 30, 2022, and 2021. Further detail on the City’s outstanding debt may be found in Note 7. Information on the City’s net pension/OPEB liability may be found in the Required Supplementary Section of the report and in Note 9. Outstanding Debt (in millions of dollars) Governmental Business-type Activities Activities 2022 2021 2022 2021 General obligation debt $ 165.7 Municipal Development Authority debt Excise tax revenue obligations 21.5 Direct Purchase and Loan Obligations 19.6 Special assessment debt Water/Sewer Revenue bonds and loans Community Facilities District bonds 23.5 Compensated absences 17.2 $ 247.5 Total $ 124.2 27.9 23.4 27.6 16.1 $ 219.2 $ 108.5 1.9 $ 110.4 $ 69.2 1.6 $ 70.8 Total Primary Government 2022 2021 $ 165.7 21.5 19.6 108.5 23.5 19.1 $ 357.9 $ $ 124.2 27.9 23.4 69.2 27.6 17.7 290.0 The City currently maintains the following ratings on its general obligation debt: “AA+” from Standard & Poor’s, “Aaa” from Moody’s and “AAA“ from Fitch. For the water and sewer revenue bonds, the ratings are “AA+” from Standard & Poor’s, “Aa2” from Moody’s and “AA” from Fitch. ECONOMIC FACTORS Local sales tax revenues grew significantly in fiscal year 2022. Retail sales tax, the City’s largest category, increased by 9.0% over the prior year. While the City is expecting continued sales tax revenue growth, budget projections are intentionally conservative and show minimal change in revenue levels. Peoria’s housing market has slowed somewhat as rising interest rates and high inflation have tempered demand. The long-term outlook for Peoria continues to be very strong with the expectation that Arizona will continue to outpace the nation in growth and income related metrics. 16 The adopted fiscal year 2023 budget is $695 million, an increase of 12.7% from the fiscal year 2022 budget. The operating budget totals $498.1 million, which is an increase of 9.9% from 2022. The capital projects portion of the budget, $284.9 million, is divided in the following manner: $32.4 million for drainage projects, $23.6 million for operational facilities, $46.5 million for parks, trails, open space and libraries, $5.5 million for public safety projects, $61.3 million for streets and traffic control projects, $10.3 million for economic development projects, $44.6 million for wastewater projects, and $60.7 million for water projects. The General Fund operating budget is $189.6 million, up 8.3% from the prior year budget. With the uncertainty surrounding the economy, resident needs for City services were balanced with a slowly increasing revenue base. The budget continues to focus on preserving the City’s excellent quality of life, while preserving our future financial viability. The City has maintained cash balances over the last few years, both for financial stability and in anticipation of the capital and ongoing operational needs of an ever-changing city. The City has maintained several stabilization reserves within the General Fund in accordance with the City’s adopted financial policies – The Principles of Sound Financial Management. The City also maintains working capital policy reserve, rate stabilization, and debt stabilization reserves in the Utility Funds. It should be noted that while these reserves are established to address immediate and dramatic fiscal difficulties, they are not intended to cover structural budget shortfalls. With this in mind, the fiscal year 2022 budget does not anticipate the use of reserves to address recurring expenses. FINANCIAL CONTACT This financial report is designed to provide a general overview of the City of Peoria, Arizona’s finances and to demonstrate accountability for the use of public funds. Questions about any of the information provided in this report, or requests for additional financial information should be addressed to the City’s Chief Financial Officer at the following address: City of Peoria, 8401 W. Monroe Street, Peoria, Arizona 85345. 17 18 Basic Financial Statements CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2022 Governmental Activities ASSETS Pooled cash and investments $ 326,720,842 Cash with fiscal agents 18,948 Accounts receivable, net 19,531,818 Lease receivable 9,947,471 Interest receivable 572,804 Internal balances (4,172,204) Due from other governments 6,166,031 Prepaid items Supply inventories 607,514 Restricted pooled cash and investments 19,870,479 Restricted cash with fiscal agents 10,431,326 Restricted investments 48,365,221 Investments in Joint Venture Agreements 1,605,480 Net pension and other postemployment benefits asset 3,229,114 Capital assets: Non-depreciable or amortizable 450,075,940 Depreciable or amortizable (net) 489,691,769 Total assets 1,382,662,553 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other 77,544,433 postemployment benefits Deferred loss on bond refunding 2,028,000 Excess consideration provided for acquisition Total deferred outflows of resources 79,572,433 LIABILITIES Accounts payable 12,482,415 Accrued payroll 2,805,184 Interest payable 3,532,128 Due to other governments 298,491 Customer deposits Other liabilities 5,585,173 Unearned revenue-other 25,029,457 Non-current liabilities: Due within one year: Current portion of claims payable 5,501,797 Current portion of compensated absences 8,079,230 Current portion of bonds & loans payable 25,227,674 Current portion of lease payable 17,499 Due in more than one year: Noncurrent portion of claims payable 1,449,003 Noncurrent portion of compensated absences 9,168,260 Noncurrent portion of bonds & loans payable 222,682,149 Noncurrent portion of lease payable 15,047 Net pension and other postemployment benefits liablilities 140,764,979 Total liabilities 462,638,486 DEFERRED INFLOWS OF RESOURCES 9,776,785 Deferred inflows related to leases Deferred inflows related to pensions and other 43,494,061 postemployment benefits Total deferred inflow of resources 53,270,846 NET POSITION Net investment in capital assets 732,178,933 Restricted for: Debt service 24,360,857 Capital projects Development fees 37,709,451 Transportation purposes 41,062,687 Grant purposes 6,348,841 Facilities maintenance 1,924 Public Safety 1,115,267 Trust purpose 19,147,495 Net Other Postemployment Benefits 3,229,114 Unrestricted 81,171,085 Total net position $ 946,325,654 Primary Government Business-type Activities Total $ 146,277,109 13,580,445 3,979,078 170,212 4,172,202 1,082,055 635,820 81,258 487,662 $ 472,997,951 18,948 33,112,263 13,926,549 743,016 (2) 6,166,031 1,082,055 1,243,334 19,870,479 10,512,584 48,365,221 1,605,480 3,716,776 99,967,562 637,645,918 908,079,321 550,043,502 1,127,337,687 2,290,741,874 3,378,903 1,237,684 4,616,587 80,923,336 2,028,000 1,237,684 84,189,020 6,079,496 362,080 1,341,631 180,869 2,016,026 774,785 1,050 18,561,911 3,167,264 4,873,759 479,360 2,016,026 6,359,958 25,030,507 865,300 7,819,681 5,501,797 8,944,530 33,047,355 17,499 1,005,480 107,192,160 1,449,003 10,173,740 329,874,309 15,047 12,937,761 140,576,319 153,702,740 603,214,805 3,918,981 13,695,766 4,794,527 8,713,508 48,288,588 61,984,354 640,404,948 1,372,583,881 48,325,932 100,000 24,360,857 48,325,932 37,709,451 41,062,687 6,348,841 101,924 1,115,267 19,147,495 3,716,776 155,258,624 $ 1,709,731,735 487,662 74,087,539 $ 763,406,081 The accompanying notes are an integral part of the financial statements 19 CITY OF PEORIA, ARIZONA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2022 Net (Expense) Revenue and Changes in Net Position Program Revenues Functions/Programs Governmental activities: General government Culture and recreation Public safety Development services Highways and streets Public works Human services Interest on long-term debt Expenses $ Total governmental activities Business-type activities: Water Utility Wastewater Utility Solid Waste Utility Stadium Storm Drain Utility Operating Grants and Contributions $ $ $ 2,969,385 6,763,805 10,124,084 5,221,636 5,111,575 6,040,975 73,483 - 248,207,954 36,304,943 57,101,424 32,608,310 16,406,294 7,279,287 4,947,393 52,608,357 25,935,811 15,941,019 4,793,886 1,538,257 118,342,708 Total business-type activities Total primary government 29,320,764 38,959,427 95,609,943 7,241,732 59,756,231 7,498,034 3,480,639 6,341,184 Fees, Fines & Charges for Services 366,550,662 3,859,728 654,340 2,501,848 23,916 13,158,294 6,027,288 - 1,000,000 142,247 35,324,202 - 26,225,414 36,466,449 - 100,817,330 $ 137,122,273 Capital Grants and Contributions $ 19,914,624 $ (21,491,651) (31,541,282) (82,841,764) (1,996,180) (6,162,160) (1,457,059) 2,620,132 (6,341,184) Business-type Activities $ (149,211,148) 9,277,991 8,077,735 2,558,898 $ 26,225,414 Governmental Activities 56,381,073 Change in net position Net position - beginning Cumulative effect of restatement Net position - beginning - restated Net position - ending $ The accompanying notes are an integral part of the financial statements 20 (21,491,651) (31,541,282) (82,841,764) (1,996,180) (6,162,160) (1,457,059) 2,620,132 (6,341,184) (149,211,148) - 4,784,924 1,405,236 (465,275) (2,485,401) (850,238) - 2,389,246 2,389,246 2,389,246 (146,821,902) 6,351,779 25,044,456 125,521,932 4,961,622 Total general revenues and transfers $ - (149,211,148) General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Sales and use taxes Franchise taxes Intergovernmental: State shared sales taxes- unrestricted Urban revenue sharing- unrestricted Auto in-lieu taxes- unrestricted Investment losses Gain on sale of capital assets Miscellaneous Transfers in (out) - Total 4,784,924 1,405,236 (465,275) (2,485,401) (850,238) - 6,351,779 25,044,456 125,521,932 4,961,622 26,815,644 24,816,247 8,237,369 (6,556,874) 3,658,727 (3,373,622) (2,985,986) 24,095 3,373,622 26,815,644 24,816,247 8,237,369 (9,542,860) 24,095 3,658,727 - 215,477,280 411,731 215,889,011 66,266,132 2,800,977 69,067,109 884,031,570 756,633,056 1,640,664,626 (3,972,048) 3,972,048 880,059,522 760,605,104 946,325,654 $ 763,406,081 1,640,664,626 $ 1,709,731,735 21 CITY OF PEORIA, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2022 Major Funds ASSETS Assets: Pooled cash and investments Cash with fiscal agents Accounts receivable, net Lease receivable Interest receivable Due from other funds Due from other governments Supply inventories Restricted cash with fiscal agents Restricted investments Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES & FUND BALANCES Liabilities: Accounts payable Accrued payroll Due to other funds Due to other governments Other liabilities Unearned revenue-other Total liabilities Deferred Inflows of Resources: Unavailable revenue-property taxes Unavailable revenue-other Related to leases Total deferred inflows of resources Fund Balances: Nonspendable: Supply inventories Restricted for: Debt service Capital projects Development fees Transportation purposes Public safety Grant purposes Arts Center maintenance Committed to: Debt service Economic development Arts capital Operating reserve Emergency reserve Budget stabilization reserve Assigned to: Capital projects Municipal Complex reserve Unassigned Total fund balance Total liabilities, deferred inflows of resources & fund balance $ $ $ General Fund Highway User Revenue Fund Transportation Sales Tax Fund GO Bond Debt Service Fund Development Fee Fund 155,518,343 18,948 15,820,962 9,947,471 335,369 722,812 1,645,188 190,312 184,199,405 $ 13,016,233 582,245 17,587 1,412,189 94,832 $ 15,123,086 $ $ 13,841,274 17,430 10,013 258,001 5,564,053 $ 19,690,771 $ 39,731,549 48,596 $ 39,780,145 2,499,476 2,466,966 298,491 5,402,911 758,819 11,426,663 $ $ $ $ 486,560 8,848 495,408 - 2,070,694 2,070,694 2,133 142,393 9,776,785 9,921,311 - - 17,430 17,430 - 190,312 94,832 - - - 1,924 13,696,637 - 1,000,000 3,219,522 20,196,469 13,464,313 22,022,464 $ 1,242,755 88,862 1,331,617 $ 25,382,797 2,449,945 26,716 2,000 27,861,458 27,366,050 - - 3,748,153 99,008,274 162,851,431 184,199,405 13,791,469 $ 15,123,086 - $ 27,366,050 27,861,458 The accompanying notes are an integral part of the financial statements 22 19,673,341 19,673,341 $ 19,690,771 37,709,451 37,709,451 $ 39,780,145 (continued) CITY OF PEORIA, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2022 Major Funds ASSETS Assets: Pooled cash and investments Cash with fiscal agents Accounts receivable, net Lease receivable Interest receivable Due from other funds Due from other governments Supply inventories Restricted cash with fiscal agents Restricted investments Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES & FUND BALANCES Liabilities: Accounts payable Accrued payroll Due to other funds Due to other governments Other liabilities Unearned revenue-other Total liabilities Deferred Inflows of Resources: Unavailable revenue-property taxes Unavailable revenue-other Related to leases Total deferred inflows of resources Fund Balances: Nonspendable: Supply inventories Restricted for: Debt service Capital projects Development fees Transportation purposes Public safety Grant purposes Arts Center maintenance Committed to: Debt service Economic development Arts capital Operating reserve Emergency reserve Budget stabilization reserve Assigned to: Capital projects Municipal Complex reserve Unassigned Total fund balance Total liabilities, deferred inflows of resources & fund balance Non-bond Capital Projects Fund $ $ $ $ Other Grants Fund Non-Major Governmental Funds Total Governmental Funds 9,067,912 566,608 27,109 1,450,401 4,390,109 39,764,751 55,266,890 $ 296,146,929 18,948 19,486,112 9,947,471 482,019 722,812 6,166,031 285,144 10,431,326 39,764,751 $ 383,451,543 2,188,532 17,613 241,576 73,096 2,520,817 $ 25,811,292 5,176 355,662 26,172,130 $ 13,777,529 48,922 11,453 1,042,590 477,164 $ 15,357,658 $ 97,675 59,543 12,902,487 13,059,705 $ $ 746,952 21,972 40,775 11,368,151 12,177,850 $ 9,332,644 2,595,413 241,576 298,491 5,585,173 25,029,457 43,082,754 - - 5,476 5,476 25,039 142,393 9,776,785 9,944,217 - - - 285,144 13,112,425 13,112,425 26,172,130 1,245,842 - 8,196,738 38,325,593 1,115,267 5,102,999 - 1,933,966 3,179,808 $ 15,357,658 - $ 52,740,597 55,266,890 The accompanying notes are an integral part of the financial statements 23 27,870,079 38,325,593 37,709,451 41,062,687 1,115,267 6,348,841 1,924 1,000,000 3,219,522 1,933,966 20,196,469 13,464,313 22,022,464 13,112,425 3,748,153 99,008,274 330,424,572 $ 383,451,543 24 CITY OF PEORIA, ARIZONA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES JUNE 30, 2022 Fund balances - total governmental funds $ 330,424,572 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 Less accumulated depreciation and amortization $ 1,683,567,707 (758,687,216) 924,880,491 Other assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Other post employment benefits asset Deferred loss on bond refunding 2,956,841 2,028,000 Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds. Governmental bonds payable Leases payable Compensated absences (230,340,722) (32,546) (16,003,630) (246,376,898) Equity in joint ventures are not financial resources and, therefore, are not reported in the funds. 1,605,480 Bond premiums are recognized at the time of issuance in the governmental funds, but recognized over the life of the bonds for government-wide reporting (17,569,101) Property tax revenue and other revenues earned but not received within 60 days of year-end is a deferred inflow of resources for the governmental statements, but is recognized as revenue for the government-wide statements 167,432 Interest payable on long-term debt is not reported in the governmental funds. (3,532,128) Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are reported with the governmental activities. 50,441,719 Long-term liabilities, such as net pension and OPEB liabilities are not due and payable in the current period and, therefore, are not reported as a liability in the funds. (133,541,502) Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future reporting periods and, therefore, are not reported in the funds. Deferred outflows related to pension/OPEB Deferred inflows related to pension/OPEB 75,657,903 (40,817,155) Total net position of governmental activities 34,840,748 $ The accompanying notes are an integral part of the financial statements 25 946,325,654 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Major Funds General Fund Highway User Revenue Fund Transportation Sales Tax Fund GO Bond Debt Service Fund Development Fee Fund $ $ $ 20,670,203 (389,812) 20,280,391 $ REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings (loss) Miscellaneous Total revenues $ 112,370,516 60,482,643 18,229,679 5,100,898 1,619,089 1,080,477 (3,930,843) 1,323,543 196,276,002 EXPENDITURES: Current: General government Culture and recreation Public safety Development services Highways and streets Public works Human services Debt service: Principal payments Interest and other charges Capital outlay Total expenditures 20,915,999 28,515,249 133,049,473 5,073,266 6,033,717 19,087 901 343,146 193,950,838 17,745,768 - 5,196,253 - 2,812 17,748,580 2,165,508 7,361,761 14,275,028 4,609,707 18,884,735 2,244,450 9,385,164 2,325,164 506,259 11,350,491 1,395,656 (1,230,227) 860,000 (10,502,479) (9,642,479) 1,092,584 (118,994) 973,590 (6,877,246) (6,877,246) (7,317,315) 1,479,849 4,473,245 1,395,656 (1,059,177) 170,168,746 12,311,620 22,892,805 18,277,685 38,768,628 $ 162,851,431 $ 13,791,469 27,366,050 $ 19,673,341 $ 37,709,451 (continued) Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Issuance of debt Premium on bonds issued Payment to bond refunding escrow agent Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 5,217,559 13,158,294 75,969 (316,733) 119,750 18,254,839 $ 19,244,308 (651,256) 119,200 18,712,252 - 420 79,583 7,060,711 - - 171,050 171,050 The accompanying notes are an integral part of the financial statements 26 9,174,188 (1,019,251) 8,154,937 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Major Funds Non-bond Capital Projects Fund REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings (loss) Miscellaneous Total revenues $ EXPENDITURES: Current: General government Culture and recreation Public safety Development services Highways and streets Public works Human services Debt service: Principal payments Interest and other charges Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Issuance of debt Premium on bonds issued Payment to bond refunding escrow agent Transfers in Transfers out Total other financing sources and uses Fund balances - beginning Fund balances - ending $ Non-Major Governmental Funds Total Governmental Funds $ 4,894,127 2,827,002 73,483 (354,037) 1,435,382 8,875,957 $ 162,396,713 96,914,612 28,254,679 5,100,898 1,731,336 1,080,477 (6,532,719) 3,732,659 292,678,655 9,487,521 75,618 516,267 10,079,406 $ 10,959,152 701,360 112,247 53,595 218,517 12,044,871 530,883 471,378 118,279 749,329 1,869,869 4,090,429 2,835,140 1,877,099 1,893,965 1,013,093 1,634,382 2,137,422 29,059 44,533 1,082,146 2,463,169 26,640,810 34,019,114 135,035,214 6,967,231 30,518,643 7,234,142 3,476,262 631,244 12,340,970 10,074,051 3,024,591 10,962,772 31,452,125 24,368,166 7,635,199 17,099,261 292,994,042 8,209,537 (296,099) (22,576,168) (315,387) 13,482 (224,497) (211,015) 21,495,000 55,880,000 8,086,575 (26,081,153) 9,285,374 (1,460) 68,664,336 21,495,000 55,880,000 8,086,575 (26,081,153) 11,422,490 (17,724,676) 53,078,236 8,209,537 (507,114) 46,088,168 52,762,849 4,902,888 3,686,922 6,652,429 277,661,723 13,112,425 $ 3,179,808 $ 52,740,597 $ 330,424,572 - Net change in fund balances Other Grants Fund The accompanying notes are an integral part of the financial statements 27 28 CITY OF PEORIA, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2022 Net change in fund balances - total governmental funds $ 52,762,849 Amounts reported for governmental activities in the statement of activities are different because: Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (1,177,223) Certain revenues are advances in the governmental funds because they do not provide current financial resources, but are considered revenue on the statement of activities. (83,999) Interest expense in the statement of activities differs from the amount reported in governmental funds because accrued interest was calculated for bonds and notes payable for the statement of activities, but is expensed when due for the governmental fund statements. (1,521) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. This is the amount by which capital outlays ($17,099,261), plus other capital $0, is exceeded by depreciation and amortization ($40,221,216) in the current period. (23,121,955) In the statement of activities, only the gain on the sale of capital assets is reported, whereas in the governmental funds, the proceeds from the sale of capital assets increase financial resources Thus, the change in net position differs from the change in fund balance by the cost of the assets sold or disposed of. Also gains/losses on sales of capital assets are not shown in the governmental funds, but are revenues or expenses on the statement of activities. 96,218 Donations of capital assets are not reflected on the governmental fund statements but are shown in the statement of activities. 25,462,661 The issuance of long-term debt provides current financial resources in the governmental funds, but creates a long-term liability in the statement of activities. (77,375,000) The issuance of refunding bonds provides both a financial resource (the sale) and an other financing use (payment to bond escrow agent) in the governmental statements but these debt transactions do not create sources or uses on the statement of activities. 26,081,153 Repayment of bonds principal and lease payments is an expenditure in the governmental funds, but reduces long-term liabilities in the statement of net position. 24,368,165 Bond premiums or discounts and gains or losses on bond refunding are sources or uses of current financial resources for governmental fund reporting but are deferred outflows or inflows of resources for government-wide reporting. (6,791,039) The contribution of governmental capital assets to Proprietary Funds is not shown in the governmental fund statements but is a transfer in in the statement of activities. (372,107) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. 4,462,119 Governmental funds report pension/OPEB contributions as expenditures. However, in the Statement of Activities, pension/OPEB service costs, interest on the pension liability, current year benefit changes, member contributions, expected earnings on plan investments, administrative expenses and recognition of deferred outflows and inflows from pension and OPEB is reported as pension/OPEB expense. 41,955,811 Change in net position of governmental activities $ The accompanying notes are an integral part of the financial statements 29 66,266,132 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings Miscellaneous Total revenues $ 68,443,865 49,667,699 35,949,959 4,481,881 1,553,000 1,242,345 1,300,100 951,861 163,590,710 $ 68,443,865 49,667,699 35,949,959 4,481,881 1,553,000 1,242,345 1,300,100 951,861 163,590,710 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 80,831,755 60,321,703 34,852,027 5,100,898 1,619,089 1,425,767 371,935 1,313,543 185,836,717 $ 12,387,890 10,654,004 (1,097,932) 619,017 66,089 183,422 (928,165) 361,682 22,246,007 EXPENDITURES: Current: General government: Mayor and council City manager Human resources Attorney City clerk Court Economic development Finance Non-departmental Culture and recreation Public safety: Police Fire 886,388 6,011,566 3,949,729 3,848,704 1,452,463 2,501,241 1,860,453 11,931,539 3,393,118 33,833,318 886,388 6,374,761 4,641,244 3,902,095 1,430,193 2,543,539 1,897,890 11,553,605 32,901,422 34,610,192 814,996 5,841,883 3,608,489 3,692,650 993,705 2,412,116 1,410,920 10,430,733 26,402,768 27,994,046 (71,392) (532,878) (1,032,755) (209,445) (436,488) (131,423) (486,970) (1,122,872) (6,498,654) (6,616,146) 53,907,302 41,982,968 55,695,137 42,758,406 54,978,880 43,083,777 (716,257) 325,371 Development services Public works Capital outlay Total expenditures 6,581,557 6,552,210 11,833,146 190,525,702 6,786,386 6,724,248 14,199,014 226,904,520 4,901,469 6,033,718 5,138,969 197,739,119 (1,884,917) (690,530) (9,060,045) (29,165,401) (26,934,992) (63,313,810) (11,902,402) 51,411,408 (40,250,000) 12,938,869 (5,353,197) (32,664,328) (74,410) 12,954,169 (5,353,197) 7,526,562 15,178,489 (1,593,719) 13,584,770 74,410 2,224,320 3,759,478 6,058,208 (59,599,320) (55,787,248) 1,682,368 57,469,616 93,704,663 93,704,663 123,035,092 29,330,429 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 34,105,343 $ 37,917,415 $ The accompanying notes are an integral part of the financial statements 30 124,717,460 $ 86,800,045 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT HALF-CENT SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Miscellaneous Total revenues $ EXPENDITURES: Current: General government Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 24,896,691 142,500 25,039,191 $ 24,896,691 142,500 25,039,191 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 31,538,761 (1,117,908) 10,000 30,430,853 $ 6,642,070 (1,260,408) 10,000 5,391,662 3,029,477 1,428,259 4,457,736 11,501,766 2,214,276 13,716,042 4,641,583 8,000,000 12,641,583 (6,860,183) 8,000,000 (2,214,276) (1,074,459) 20,581,455 11,323,149 17,789,270 6,466,121 (20,000,000) (16,221,211) (36,221,211) (16,221,211) (16,221,211) (18,459,891) (18,459,891) (2,238,680) (2,238,680) (15,639,756) (4,898,062) (670,621) 4,227,441 41,678,759 41,678,759 47,122,754 5,443,995 26,039,003 $ 36,780,697 $ 46,452,133 $ NOTE: Although included with the General Fund for GAAP presentation, the Half-Cent Sales Tax Fund is budgeted separately. The accompanying notes are an integral part of the financial statements 31 9,671,436 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2021 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "Total revenues" from the General Fund budgetary comparison statement Actual amounts (budgetary basis) "Total revenues" from the Half-Cent Sales Tax Fund budgetary comparison statement Differences - budget to GAAP: Interdepartmental service charges are revenue on a budgetary basis, but are eliminated from the financial statements under GASB34's allocation rules The City budgets certain revenues on the cash basis, rather than on the modified accrual basis Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds Uses/outflows of resources: Actual amounts (budgetary basis) "Total expenditures" from the General Fund budgetary comparison statement Actual amounts (budgetary basis) "Total expenditures" from the Half-Cent Sales Tax Fund budgetary comparison statement Differences - budget to GAAP: The City budgets for certain other expenditures on the cash basis, rather than on the modified accrual basis Capital outlay recognized as expenditures in proprietary fund for budgetary purposes, but assets reclassified to expenditure in governmental funds for financial reporting purposes Capital outlay recognized as expenditures for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Capital outlay for capital leases are expenditures for GAAP purposes, but not for budgetary purposes Certain interdepartmental service charges are recognized as expenditures for budgetary purposes but are eliminated from the financial statements under GASB34's allocation rules Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds The accompanying notes are an integral part of the financial statements 32 $ 185,836,717 30,430,853 (16,622,348) (3,369,220) $ 196,276,002 $ 197,739,119 12,641,583 719,350 (4,795,823) (12,353,391) $ 193,950,838 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT HIGHWAY USER REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Intergovernmental Charges for services Investment earnings(loss) Miscellaneous Total revenues $ EXPENDITURES: Current: Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 4,835,837 11,409,951 135,000 153,503 16,534,291 $ 4,835,837 11,409,951 135,000 153,503 16,534,291 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 5,217,559 13,158,294 75,969 (316,733) 119,750 18,254,839 $ 381,722 1,748,343 (59,031) (470,236) 119,750 1,720,548 11,420,137 10,850,038 22,270,175 12,738,557 8,424,905 21,163,462 17,745,768 2,812 17,748,580 5,007,211 (8,422,093) (3,414,882) (5,735,884) (4,629,171) 506,259 5,135,430 (1,500,000) 2,046,837 (1,165,831) (618,994) 2,046,837 (118,994) 1,927,843 1,092,584 (118,994) 973,590 (954,253) (954,253) (6,354,878) (2,701,328) 1,479,849 4,181,177 11,554,087 11,554,087 12,311,620 757,533 5,199,209 $ 8,852,759 $ 13,791,469 The accompanying notes are an integral part of the financial statements 33 $ 4,938,710 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT TRANSPORTATION SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Miscellaneous Total revenues $ EXPENDITURES: Current: Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 15,004,201 284,378 15,288,579 $ 15,004,201 284,378 15,288,579 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 19,244,308 (651,256) 119,200 18,712,252 $ 4,240,107 (935,634) 119,200 3,423,673 905,590 17,228,917 18,134,507 866,045 17,102,021 17,968,066 5,196,253 2,165,508 7,361,761 4,330,208 (14,936,513) (10,606,305) (2,845,928) (2,679,487) 11,350,491 14,029,978 (2,600,000) (6,706,196) (9,306,196) (6,706,196) (6,706,196) (6,877,246) (6,877,246) (171,050) (171,050) (12,152,124) (9,385,683) 4,473,245 13,858,928 20,554,017 20,554,017 22,892,805 2,338,788 8,401,893 $ 11,168,334 $ The accompanying notes are an integral part of the financial statements 34 27,366,050 $ 16,197,716 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE OTHER GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Intergovernmental Charges for services Fines and forfeitures Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: General government Culture and recreation Public safety Development services Human Services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 8,170,852 350,000 119,634 41,700 10,000 8,692,186 $ 8,170,852 350,000 119,634 41,700 10,000 8,692,186 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 10,959,152 701,360 112,247 53,595 218,517 12,044,871 $ 2,788,300 351,360 (7,387) 11,895 208,517 3,352,685 176,577 1,055,019 485,117 3,251,355 726,422 744,741 6,439,231 176,577 1,087,146 826,265 3,251,355 815,422 744,741 6,901,506 4,090,429 2,835,140 1,877,099 1,893,965 1,013,093 631,244 12,340,970 3,913,852 1,747,994 1,050,834 (1,357,390) 197,671 (113,497) 5,439,464 2,252,955 1,790,680 (296,099) (2,086,779) (3,000,000) (224,497) (3,224,497) (224,497) (224,497) 13,482 (224,497) (211,015) 13,482 13,482 (971,542) 1,566,183 (507,114) (2,073,297) 3,679,659 3,679,659 3,686,922 7,263 2,708,117 $ 5,245,842 $ The accompanying notes are an integral part of the financial statements 35 3,179,808 $ (2,066,034) CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2022 ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Leases receivable Interest receivable Prepaid items Supplies inventory Total current assets Non-current assets: Restricted assets: Cash with fiscal agents Investments Net restricted assets Capital assets: Buildings and improvements Distribution and collection systems Water rights Equipment & furniture Vehicles Less accumulated depreciation and amortization Land and improvements Construction in progress Capital assets, net Net other postemployment benefits asset Total non-current assets Total assets Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund $ DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other postemployment benefits Excess consideration provided for acquisition Total deferred outflows of resources 78,998,362 7,015,349 80,026 722,865 635,637 87,452,239 $ 51,938,160 2,947,882 50,657 54,936,699 $ 10,384,588 1,832,130 12,839 359,190 183 12,588,930 39,363 39,363 41,895 41,895 - 1,662,522 448,791,114 12,889,805 17,682,769 2,364,896 (223,623,124) 6,867,999 63,301,388 329,937,369 188,224 330,164,956 417,617,195 7,612,045 430,780,581 2,320,486 1,563,734 (187,885,043) 3,878,001 17,841,650 276,111,454 97,547 276,250,896 331,187,595 211,038 18,058,579 (7,368,296) 10,901,321 138,065 11,039,386 23,628,316 1,304,167 1,237,684 2,541,851 675,881 675,881 956,623 956,623 LIABILITIES Current liabilities: Accounts payable Accrued payroll Interest payable Due to other funds Due to other governments Customer deposits Other liabilities Current portion of claims payable Current portion of compensated absences Current portion of bonds & loans payable Unearned revenue-other Total current liabilities Non-current liabilities: Long-term portion of claims payable Long-term portion of compensated absences Long-term portion of bonds & loans payable Net pension and other postemployment benefits liablilities Total non-current liabilities Total liabilities 3,668,753 127,039 901,143 180,069 2,015,026 437,859 346,490 5,272,953 12,949,332 1,727,971 76,136 440,488 336,926 151,430 2,546,728 5,279,679 552,887 110,510 229,040 892,437 390,220 73,920,589 4,993,628 79,304,437 92,253,769 174,520 33,271,571 2,587,944 36,034,035 41,313,714 242,740 3,662,886 3,905,626 4,798,063 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions and other postemployment benefits Deferred inflows related to leases Total deferred inflows of resources 1,850,561 1,850,561 959,052 959,052 1,357,404 1,357,404 259,417,578 249,422,713 10,901,321 24,607,295 188,224 41,841,619 326,054,716 17,148,844 97,547 22,921,606 $ 289,590,710 359,539 138,065 7,030,547 18,429,472 (continued) NET POSITION Net investment in capital assets Restricted: Capital projects Facilities maintenance Trust purpose Net other postemployment benefits Unrestricted Total net position $ $ The accompanying notes are an integral part of the financial statements 36 CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2022 ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Leases receivable Interest receivable Prepaid items Supplies inventory Total current assets Non-current assets: Restricted assets: Cash with fiscal agents Investments Net restricted assets Capital assets: Buildings and improvements Distribution and collection systems Water rights Equipment & furniture Vehicles Less accumulated depreciation and amortization Land and improvements Construction in progress Capital assets, net Net other postemployment benefits asset Total non-current assets Total assets Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund $ 4,955,999 1,610,186 3,979,078 25,790 10,571,053 $ - DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other postemployment benefits Excess consideration provided for acquisition Total deferred outflows of resources 174,898 900 175,798 $ - Total Governmental Activities Internal Service Funds 146,277,109 13,580,445 3,979,078 170,212 1,082,055 635,820 165,724,719 $ 30,573,913 19,595,479 275,000 45,706 90,785 322,370 50,903,253 81,258 81,258 8,600,470 8,600,470 70,823,207 2,034,800 49,340 (32,135,267) 6,703,349 47,475,429 54,614 47,530,043 58,101,096 118,565,613 26,478 (46,779,359) 1,375,175 73,187,907 9,212 73,197,119 73,372,917 80,097,774 998,137,308 12,889,805 22,275,571 22,036,549 (497,791,089) 18,824,524 81,143,038 737,613,480 487,662 738,182,400 903,907,119 148,102 39,710,048 37,422,679 (62,607,530) 213,919 14,887,218 272,273 23,759,961 74,663,214 378,408 378,408 63,824 63,824 3,378,903 1,237,684 4,616,587 1,886,530 1,886,530 LIABILITIES Current liabilities: Accounts payable Accrued payroll Interest payable Due to other funds Due to other governments Customer deposits Other liabilities Current portion of claims payable Current portion of compensated absences Current portion of bonds & loans payable Unearned revenue-other Total current liabilities Non-current liabilities: Long-term portion of claims payable Long-term portion of compensated absences Long-term portion of bonds & loans payable Net pension and other postemployment benefits liablilities Total non-current liabilities Total liabilities 107,100 41,465 800 1,000 125,830 1,050 277,245 22,785 6,930 481,236 12,510 523,461 6,079,496 362,080 1,341,631 481,236 180,869 2,016,026 774,785 865,300 7,819,681 1,050 19,922,154 3,149,771 209,771 5,501,797 591,850 9,453,189 170,670 1,448,918 1,619,588 1,896,833 27,330 244,385 271,715 795,176 1,005,480 107,192,160 12,937,761 121,135,401 141,057,555 1,449,003 652,010 7,223,477 9,324,490 18,777,679 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions and other postemployment benefits Deferred inflows related to leases Total deferred inflows of resources 536,945 3,918,981 4,455,926 90,565 90,565 4,794,527 3,918,981 8,713,508 2,676,906 2,676,906 47,475,429 73,187,907 640,404,948 14,864,251 6,210,254 100,000 54,614 (1,713,552) $ 52,126,745 9,212 (646,119) 72,551,000 48,325,932 100,000 487,662 69,434,101 758,752,643 19,147,495 272,273 20,811,140 $ 55,095,159 NET POSITION Net investment in capital assets Restricted: Capital projects Facilities maintenance Trust purpose Net other postemployment benefits Unrestricted Total net position Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time. $ $ The accompanying notes are an integral part of the financial statements 37 4,653,438 763,406,081 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund OPERATING REVENUES Charges for services Rents Miscellaneous Total operating revenues $ 50,112,113 2,496,244 52,608,357 $ 25,924,982 10,829 25,935,811 $ 15,936,756 4,263 15,941,019 6,447,846 34,758,680 14,545,053 55,751,579 (3,143,222) 3,413,425 16,902,271 11,701,193 32,016,889 (6,081,078) 5,046,393 10,287,002 1,453,947 16,787,342 (846,323) (1,681,640) (1,528,286) (3,209,926) (1,191,142) (696,773) (1,887,915) (264,082) (56,372) (320,454) (6,353,148) (7,968,993) (1,166,777) Capital contributions Transfers in Transfers out Change in net position 9,650,098 569,074 (4,034,730) (168,706) 8,077,735 3,159,696 (694,680) 2,573,758 119,681 (1,047,096) Total net position - beginning 326,223,422 287,016,952 19,476,568 Restatement Total net position - beginning, restated 326,223,422 287,016,952 19,476,568 $ 326,054,716 $ 289,590,710 $ 18,429,472 (continued) OPERATING EXPENSES Salaries, wages and employee benefits Contractual services, materials and supplies Insurance claims and expenses Depreciation and amortization Total operating expenses Operating income (loss) NON-OPERATING REVENUES (EXPENSES) Investment income(loss) Interest expense Gain (loss) on sale of capital assets Total non-operating revenues (expenses) Income (loss) before capital contributions and transfers Total net position - ending The accompanying notes are an integral part of the financial statements 38 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund OPERATING REVENUES Charges for services Rents Miscellaneous Total operating revenues $ OPERATING EXPENSES Salaries, wages and employee benefits Contractual services, materials and supplies Insurance claims and expenses Depreciation and amortization Total operating expenses Operating income (loss) 613,030 1,034,388 3,146,468 4,793,886 $ 1,538,257 1,538,257 Total $ Governmental Activities Internal Service Funds 94,125,138 1,034,388 5,657,804 100,817,330 $ 54,171,586 530,726 54,702,312 2,229,330 2,736,931 2,342,819 7,309,080 (2,515,194) 258,089 1,773,575 2,928,600 4,960,264 (3,422,007) 17,395,083 66,458,459 32,971,612 116,825,154 (16,007,824) 9,675,997 17,215,535 21,886,531 4,024,086 52,802,149 1,900,163 NON-OPERATING REVENUES (EXPENSES) Investment income(loss) Interest expense Gain (loss) on sale of capital assets Total non-operating revenues (expenses) Income (loss) before capital contributions and transfers 147,082 24,095 171,177 3,796 3,796 (2,985,986) (2,225,059) (32,277) (5,243,322) (24,155) 49,317 25,162 (2,344,017) (3,418,211) (21,251,146) 1,925,325 Capital contributions Transfers in Transfers out Change in net position 4,042,195 (67,097) 1,631,081 2,558,898 7,376 (100,000) (951,937) 20,286,731 7,898,022 (4,896,507) 2,037,100 3,366,900 (66,229) 5,225,996 Total net position - beginning 50,495,664 69,530,889 752,743,495 49,869,163 Restatement Total net position - beginning, restated 50,495,664 3,972,048 73,502,937 3,972,048 756,715,543 49,869,163 $ 52,126,745 $ 72,551,000 758,752,643 $ 55,095,159 Total net position - ending Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds. Change in net position of business-type activities 763,877 $ 2,800,977 The accompanying notes are an integral part of the financial statements 39 CITY OF PEORIA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Self-insurance costs Payments to internal service funds Net cash provided (used) by operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in Transfers out Interfund loans payable Net cash provided (used) by non-capital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from disposal of capital assets Capital contributions Proceeds from loans Principal payments on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Interest received on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ 52,730,606 (30,323,202) (6,519,475) (2,995,260) 12,892,669 $ 25,909,282 (15,099,419) (3,487,857) (1,394,291) 5,927,715 $ 15,889,185 (2,460,546) (4,996,894) (7,272,483) 1,159,262 569,074 (4,034,730) - 3,159,696 (694,680) - 119,681 - (3,465,656) 2,465,016 119,681 (26,098,373) 4,729,859 33,560,381 (5,668,603) (1,713,422) (10,649,834) 2,202,247 15,866,721 (2,635,455) (1,067,089) (898,838) 47,951 - 4,809,842 3,716,590 (850,887) (1,667,771) (1,667,771) (1,180,571) (1,180,571) (259,084) (259,084) 12,569,084 66,468,641 $ 79,037,725 10,928,750 41,051,305 $ 51,980,055 168,972 10,215,616 $ 10,384,588 (continued) The accompanying notes are an integral part of the financial statements 40 CITY OF PEORIA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Self-insurance costs Payments to internal service funds Net cash provided (used) by operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in Transfers out Interfund loans payable Net cash provided (used) by non-capital financing activities $ 3,597,265 (2,216,127) (2,152,600) (551,964) (1,323,426) $ 1,542,262 (1,527,843) (307,462) (242,668) (535,711) $ 99,668,600 (51,627,137) (17,464,288) (12,456,666) 18,120,509 4,042,195 (67,097) - 7,376 (100,000) 481,236 7,898,022 (4,896,507) 481,236 3,366,900 (66,229) - 3,975,098 388,612 3,482,751 3,300,671 24,095 - - (37,647,045) 72,046 6,932,106 49,427,102 (8,304,058) (2,780,511) (3,290,726) 81,879 - 24,095 - 7,699,640 (3,208,847) 126,050 126,050 3,789 3,789 (2,977,587) (2,977,587) 268,901 (6,787) 262,114 2,801,817 2,154,182 $ 4,955,999 (143,310) 143,310 - 26,325,313 120,033,054 $ 146,358,367 5,478,176 44,966,216 50,444,392 (continued) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from disposal of capital assets Capital contributions Proceeds from loans Principal payments on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Interest received on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Total Governmental Activities Internal Service Funds $ The accompanying notes are an integral part of the financial statements 41 $ $ 54,676,309 (16,682,952) (9,715,575) (23,153,544) 5,124,238 CITY OF PEORIA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ (3,143,222) $ (6,081,078) 14,545,053 11,701,193 1,453,947 79,471 (722,865) (361,276) (160,718) (26,529) (83,037) (51,834) 321,739 (117,856) (36,623) (7,209) (25,338) 2,285,788 36,225 10,360 228,211 42,778 61,380 (1,652,526) 76,753 23,187 331,808 41,350 (918,132) 232,234 42,066 138,230 (1,220,160) 1,680,633 16,035,891 869,409 12,008,793 1,232,557 2,005,585 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization (Increase) decrease in assets/deferred outflows: Accounts receivable Leases receivable Prepaid items Supplies inventory Net other postemployment benefits asset Deferred outflows - pension and other postemployment benefits Increase (decrease) in liabilities/deferred inflows: Accounts payable Accrued payroll Due to other governments Other liabilities Deposits payable Claims payable Unearned revenue - other Compensated absences Net pension and other post employment benefit liability Deferred inflows - pension and other postemployment benefits Deferred inflows - leases Total adjustments Net cash provided (used) by operating activities Non-cash investing, capital and financing activities: Capital assets acquired through contributions from developers and City governmental funds Change in fair value of investments Amortization of bond premium Total non-cash investing, capital and financing activities $ 12,892,669 $ $ $ 4,920,239 (2,185,616) 337,548 $ 3,072,171 $ 5,927,715 $ 5,875,488 (1,404,861) 345,227 $ 4,815,854 $ (846,323) 1,159,262 (318,252) $ (318,252) (continued) The accompanying notes are an integral part of the financial statements 42 CITY OF PEORIA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund Total Governmental Activities Internal Service Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ (2,515,194) $ (3,422,007) $ (16,007,824) 2,342,819 2,928,600 32,971,612 4,024,086 (1,136,792) (3,979,078) (47,210) 4,005 (7,743) (1,131,679) (3,979,078) (401,126) (361,276) (416,564) (26,003) 65,200 (103,278) (232,915) (37,229) 3,868 (102,531) (72,825) (31,727) 10,863 567 268 (910) (339,990) 3,064 2,021 (18,450) (110,558) 2,566,112 114,362 10,927 560,019 42,778 268 221,600 (4,241,366) 570,661 67,696 (1,267,013) 51,080 (2,286,374) 491,206 3,918,981 1,191,768 81,489 2,886,296 4,355,294 3,918,981 34,128,333 2,433,760 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization (Increase) decrease in assets/deferred outflows: Accounts receivable Leases receivable Prepaid items Supplies inventory Net other postemployment benefits asset Deferred outflows - pension and other postemployment benefits Increase (decrease) in liabilities/deferred inflows: Accounts payable Accrued payroll Due to other governments Other liabilities Deposits payable Claims payable Unearned revenue - other Compensated absences Net pension and other post employment benefit liability Deferred inflows - pension and other postemployment benefits Deferred inflows - leases Total adjustments Net cash provided (used) by operating activities Non-cash investing, capital and financing activities: Capital assets acquired through contributions from developers and City governmental funds Change in fair value of investments Amortization of bond premium Total non-cash investing, capital and financing activities $ 1,900,163 3,224,075 $ (1,323,426) $ (535,711) $ 18,120,509 $ 5,124,238 $ $ 2,558,898 $ 2,558,898 $ 13,354,625 (3,908,729) 682,775 $ 10,128,671 $ (339,971) (339,971) (concluded) - $ The accompanying notes are an integral part of the financial statements 43 $ CITY OF PEORIA, ARIZONA STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2022 Custodial Funds ASSETS Pooled cash and investments Due from other governments Interest receivable Total assets $ 174,862 9,500 158 184,520 LIABILITIES Accounts payable Total liabilities 1,153 1,153 NET POSITION Restricted for: Individuals and organizations Other governments Total net position 132,707 50,660 $ 183,367 The accompanying notes are an integral part of the financial statements 44 CITY OF PEORIA, ARIZONA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2022 Total Custodial Funds ADDITIONS Contributions: Individuals Intergovernmental Investment earnings: Interest Total additions $ 73,408 25,200 666 99,274 DEDUCTIONS Recipient payments Total deductions 48,158 48,158 Change in net position 51,116 Net position - beginning of the year Net position - end of the year 132,251 $ 183,367 The accompanying notes are an integral part of the financial statements 45 Notes to the Financial Statements The Notes to the Basic Financial Statements include a summary of significant accounting policies and other disclosures considered necessary for a clear understanding of the accompanying financial statements. Note Page 1 Summary of Significant Accounting Policies 47 2 Deposits and Investments 58 3 Deficits in Fund Equity/Excess of Expenditures Over Appropriations 60 4 Accounts Receivable and Allowance for Doubtful Accounts 61 5 Due from Other Governments 61 6 Capital Assets 62 7 Long-term Debt 63 8 Risk Financing Activities 68 9 Leases 69 10 Pensions and Other Postemployment Benefits 71 11 Deferred Compensation Plan 83 12 Contingencies, Commitments and Other Claims 83 13 Interfund Transactions, Receivable and Payable Balances 84 14 Stabilization Arrangements 85 15 Restatement of Beginning Balances 85 16 Segment Information for Enterprise Funds 86 17 Subsequent Events 86 46 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of the City of Peoria, Arizona (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). A summary of the City’s more significant policies follows. A. Financial Reporting Entity The City of Peoria was incorporated in 1954 under the Arizona Revised Statutes. The current City charter provides for the Council - Manager form of government and provides such services as authorized by the charter as limited by the constitution of the State of Arizona. The City's major operations include police protection and fire and medical services, parks and recreation, development services, public works, certain social services and general administrative services. In addition, the City owns and operates enterprise funds, which include water, wastewater, solid waste and storm drain operations, and a baseball stadium complex. The financial reporting entity presented in these financial statements consists of the City and its blended component units for which the City is financially accountable. The blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. These component units are governed by boards, wholly or substantially, comprised of the government’s elected council. Individual Component Units - Blended City of Peoria Municipal Development Authority, Inc. City of Peoria Municipal Development Authority, Inc. (Authority), an Arizona not-for-profit corporation, was organized for the purpose of financing the construction of municipal facilities within the City through the issuance of bonds. Concurrent with these bond issues, the City entered into contracts with the Authority whereby the City will pay, to the Authority, amounts sufficient to retire the Authority's bonds and related interest. The outstanding Municipal Development Authority, Inc. bonds are reported as a debt service fund in the City’s financial statements. All of the outstanding debt of the Authority will be repaid by revenues of the City. No separate financial statements are prepared for the Municipal Development Authority, Inc. Vistancia Community Facilities District The Vistancia Community Facilities District (Vistancia) was formed by petition to the City Council in 2002. Vistancia’s purpose is to acquire or construct public infrastructure in a specified area of the City. As a special purpose district and separate political subdivision under the Arizona Constitution, Vistancia can levy taxes and issue bonds independently of the City. Property owned in the designated areas is assessed for Vistancia’s property taxes, and thus for the costs of operating the district. The City Council serves as the Board of Directors of Vistancia and City management has operational responsibility for Vistancia. The City has no liability for the district’s debt. For reporting purposes, the transactions of Vistancia are included as governmental funds as if they were part of the City’s operations. 47 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Vistancia West Community Facilities District The Vistancia West Community Facilities District (Vistancia West) was formed by petition to the City Council in 2014. Vistancia West’s purpose is to acquire or construct public infrastructure in a specified area of the City. As a special purpose district and separate political subdivision under the Arizona Constitution, Vistancia West can levy taxes and issue bonds independently of the City. Property owned in the designated areas is assessed for Vistancia West’s property taxes, and thus for the costs of operating the district. The City Council serves as the Board of Directors of Vistancia West and City management has operational responsibility for Vistancia West. The City has no liability for the district’s debt. For reporting purposes, the transactions of Vistancia West are included as governmental funds as if they were part of the City’s operations. Mystic at Lake Pleasant Heights Community Facilities District The Mystic at Lake Pleasant Heights Community Facilities District (Mystic) was formed by petition to the City Council in 2020. Mystic’s purpose is to acquire or construct public infrastructure in a specified area of the City. As a special purpose district and separate political subdivision under the Arizona Constitution, Mystic can levy taxes and issue bonds independently of the City. Property owned in the designated areas is assessed for Mystic’s property taxes, and thus for the costs of operating the district. The City Council serves as the Board of Directors of Mystic and City management has operational responsibility for Mystic. The City has no liability for the district’s debt. For reporting purposes, the transactions of Mystic are included as governmental funds as if they were part of the City’s operations. Vistancia North Community Facilities District The Vistancia North Community Facilities District (Vistancia North) was formed by petition to the City Council in 2020. Vistancia North’s purpose is to acquire or construct public infrastructure in a specified area of the City. As a special purpose district and separate political subdivision under the Arizona Constitution, Vistancia North can levy taxes and issue bonds independently of the City. Property owned in the designated areas is assessed for Vistancia North’s property taxes, and thus for the costs of operating the district. The City Council serves as the Board of Directors of Vistancia North and City management has operational responsibility for Vistancia North. The City has no liability for the district’s debt. For reporting purposes, the transactions of Vistancia North are included as governmental funds as if they were part of the City’s operations. City of Peoria Employee Benefit Trust The City of Peoria Employee Benefit Trust (the Trust) was formed by petition to the City Council on January 1, 2010. The Trust’s purpose is to fund health, welfare and related benefit programs by the City in accordance with the provisions of Arizona law. Plan premiums are paid by Participants and the City. The City Council Sub Committee on Boards and Commissions nominate individuals to serve as Trustees overseeing the management and administration of the Trust. For financial reporting purposes, the transactions of the Trust are included as part of the Self-Insurance Fund, an internal service fund in the City’s financial statements. City of Peoria Workers’ Compensation Trust The City of Peoria Workers’ Compensation Trust (the Trust) was formed by petition to the City Council in 2009. The Trust’s purpose is to fund workers’ compensation benefit programs by the City in accordance with the provisions of Arizona law. Plan premiums are paid by the City. The City Council Sub Committee on Boards and Commissions nominate individuals to serve as Trustees overseeing the management and administration of the Trust. For financial reporting purposes, the transactions of the Trust are included as part of the Self-Insurance Fund, an internal service fund in the City’s financial statements. Stand-alone financial statements are prepared for Vistancia, Vistancia West, Vistancia North, Mystic and the two trusts above. The accounting records of these are maintained by the City and the financial 48 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 statements are available by contacting the City’s Finance Department, 8401 West Monroe Street, Peoria, AZ 85345. B. Basis of Presentation – Government-wide and Fund Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) report financial information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities which are normally supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operation or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. The City does not currently employ an indirect cost allocation system. The General Fund and certain other funds charge administrative service fees to other operating funds to support general services used by the other operating funds (like purchasing, accounting and administration). These administrative fees are eliminated from the financial statements at both the government-wide and fund level like a reimbursement, by reducing revenues and expenditures/expenses in the allocating fund. Separate financial statements are provided for governmental funds (general fund, special revenue funds, debt service funds and capital projects funds), proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund and is used to account for and report all financial resources not accounted for and reported in another fund. The Highway User Revenue Fund, a special revenue fund, is required by state statute to track receipts of specific state shared revenues and the expenditure of those funds. The Transportation Sales Tax Fund, a special revenue fund, accounts for the revenues generated from a sales tax increase designated by public vote for use in funding transportation needs throughout the City. The GO Bond Debt Service Fund accounts for the principal and interest requirements of the City’s general obligation bonds, with revenues generated from the general property tax levy sufficient to meet the debt service. The Development Fee Fund, a capital projects fund, accounts for the receipt and expenditure of development impact or expansion fees for all governmental activities as governed by state statutes. The Non-Bond Capital Projects Fund accounts for the purchase or construction of capital assets with funds other than bond proceeds. This includes monies received from outside sources, i.e. developers or other governments, and also City pay-as-you-go monies. The Other Grants Fund, a special revenue fund receives and expends much of the City's grant fund money. The amount of grants received is generally based upon application to granting agencies by the City and 49 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 availability of funding by grantors. Grant money may be used only for the purpose of the approved budget and is subject to grantor expenditure guidelines. The City reports the following major proprietary funds: The Water Utility, Wastewater Utility, Solid Waste Utility and Storm Drain Utility Funds all account for the revenues from charges to the customers of these services and the costs of these services. The Stadium Fund accounts for the revenues generated by and the costs of operation of a sports complex owned by the City. This facility is used for spring training by two major league baseball teams as well as multiple other uses throughout the year. Additionally, the City reports the following fund types: The Internal Service Funds account for (1) Motor Pool, (2) Facilities Maintenance, (3) Self-Insurance which includes workers’ compensation and health insurance programs, and (4) Information Technology which includes a computer replacement program. The Fiduciary Funds are custodial funds and do not involve measurement of operations. The City currently maintains 2 fiduciary funds. One fund, PLAY Peoria, accounts for monies held on behalf of separate notfor-profit agencies for which the City operates as an administrator. Another fund accounts for monies held on behalf of Westside Fire Training IGA, a consortium of area fire departments that pool monies for training activities, for which the City acts as the administrator. For the most part, the effect of the interfund activity has been removed from these statements. Quasiexternal transactions, like the sale of utility services from the Enterprise Funds to the other funds, are not eliminated for the financial statements as elimination of these charges would distort the direct costs and program revenue reported for the various functions. 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 revenues of the City’s enterprise and internal service funds are charges for customer services including: water, sewer, solid waste, storm drain, vehicle purchase/maintenance, computer replacement and risk management charges. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for specified expenditures, generally, the City would first apply restricted resources when an expense is incurred. C. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are earned and available to pay liabilities of the current period (generally these revenues are earned by June 30 and are expected to be collected within six months after year-end, except for property taxes). For property taxes, the City uses a 60 day collection period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting, except expenditures related to debt service, compensated absences and claims and judgments, which are recorded only when payment is due. 50 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Entitlements, other taxes and shared revenues are all considered to be susceptible to accrual and revenue recognition in the current fiscal period. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. For the governmental fund statements, grant revenue earned but not expected to be received within six months of year end is a deferred inflow of resources. Changes in fair value of investments are recognized in investment income at the end of the year. All other revenue items are considered to be measurable and available only when the City receives cash. Because different measurement focuses and basis of accounting are used in the government-wide statement of net position and in governmental fund balance sheets, amounts reported as restricted fund balances in governmental funds may be different from amounts reported as restricted net position in the statement of net position. D. Budgets and Budgetary Accounting The City prepares its annual budget on a basis consistent with generally accepted accounting principles with such exceptions as eliminating compensated absences. The City uses the following procedures in establishing the budgetary data reflected in the accompanying financial statements: • According to the laws of the State of Arizona, all operating budgets must be approved by their governing board on or before the second Monday in August to allow sufficient time for legal announcements and hearings required for the adoption of the property tax levy on the third Monday in August. • In April, the proposed budget for the following fiscal year is presented by the City Manager to the City Council. The budget includes proposed expenditures and the means of financing them. Public meetings are held to obtain citizen comment. • Prior to June 30, the City Council legally enacts the budget, through the passage of a resolution. The resolution sets the limit for expenditures for the year, within the voter mandated state expenditure limitation. Additional expenditures may be authorized if directly necessitated by a natural or man-made disaster as prescribed in the state constitution. • The maximum legal expenditure permitted for the year is the total budget as adopted. The expenditure appropriations in the adopted budget are maintained in the City’s financial system by department within individual funds. Departmental appropriations may be amended during the year, within administrative guidelines and adopted Council policies. • The initial budget for the fiscal year may be amended during the year in a legally permissible manner. • The City Manager is generally authorized to transfer budgeted amounts within any specific fund’s expenditure appropriation. Any budget revisions requiring a transfer between funds must be approved by the City Council. Additionally, budget revisions involving the use of contingency budgets must be approved by the City Council. • All unencumbered expenditure appropriations expire at the end of the fiscal year. • Encumbered amounts are re-budgeted in the following year as deemed appropriate and necessary after review by the Budget Office staff. Budgetary carry forwards are approved by the City Council. • All funds of the City, except the fiduciary funds, have legally adopted budgets. Further, no budget was adopted for the Smart & Safe AZ special revenue fund. This fund was formed after the fiscal year 2022 budget had been finalized, this fund is included in the fiscal year 2023 budget. Formal integration of these budgets into the City’s financial systems is employed as a management control device during the year for all funds. 51 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance I. Deposits and Investments Cash Equivalents The City considers short-term investments (including restricted assets) in the State of Arizona investment pool, mutual fund money market, U.S. Treasury bills and notes with maturities of three months or less at acquisition date to be cash equivalents. Investments The City’s funds are invested in accordance with the City’s investment policy and Arizona Revised Statutes. The City's policy is to invest in obligations of the U.S. Government or any of its agencies and instrumentalities, certificates of deposit, bankers’ acceptances, commercial paper, money market funds, repurchase agreements, corporate securities, the State of Arizona local government investment pool and State of Arizona debt including counties, incorporated cities, towns or duly organized school districts. Funds held by trustees related to the issuance of bonds and certain loan programs are invested in accordance with contractual agreements and trust documents. The City generally reports investments at fair value in the balance sheet and recognizes the corresponding change in the fair value of investments in the year in which the change occurred. The fair value of participants’ position in the Local Government Investment Pool approximates the value of the pool shares. Other non-pooled investments are also generally carried at fair value. The fair value of non-pooled investments is determined annually and is based on current market prices. The fair value of investments in open-end mutual funds is determined based on the funds’ current share price. Except for certain specific investments, generally those held in trust for a specific purpose, the City maintains pooled cash and investments, and allocates interest income based on a fund’s proportionate cash balance. Investment income related to certain special revenue funds is allocated to the General Fund. Non-pooled investment income is recorded in the fund that held the specific investments. II. Receivables All receivables are shown net of an allowance for uncollectible accounts. For trade accounts receivable (miscellaneous receivables and utility billing receivables), amounts outstanding in excess of 90 days are included in the allowance. Lease receivables are calculated as the net present value of future lease payments for the term of the lease as defined by GASB Statement #87. III. Inventory and Prepaid Items Inventories are valued at cost and the City uses the first-in, first-out (FIFO) flow assumption in determining cost and consist of expendable supplies. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. 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. IV. Restricted Assets Certain proceeds of the City’s bonds, as well as certain resources set aside for their repayment, are classified as restricted on the balance sheet, or statement of net position, because they are maintained in separate bank accounts and their use is limited by applicable debt covenants. 52 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 V. Capital Assets Capital assets, which include property, plant, equipment, right of use leased assets, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $100,000 for Buildings and Improvements, Water and Sewer Systems, Storm Drainage Systems and Infrastructure systems (streets, etc.) and $25,000 for all other asset categories (except land) and an estimated useful life of greater than one year. Capital assets are recorded at the cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major improvements are capitalized and depreciated over the remaining useful lives of the related capital assets. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Water rights Buildings and improvements Water and sewer systems Storm drainage systems Park facilities and landscape Street system Streetlights and traffic control devices Equipment, furniture and fixtures Vehicles Computers/software Useful life (Years) 50 20-40 5-40 40 40 20 10 7 3-15 3 Capital assets transferred between funds are transferred at their net book value (cost less accumulated depreciation) or net realizable value, if lower, as of the date of the transfer. VI. Compensated Absences The liability for compensated absences reported in the government-wide and proprietary statements consists of unpaid, accumulated leave balances. Annual leave, based on a graduated scale of years of employment, is credited to each employee as it accrues. The maximum annual leave accrual for permanent employees is 360 hours while Fire department employees accrue at a maximum rate of 544 hours. Upon employment termination, payment is made to the employee for the unused leave. City employees are granted 8 hours of sick leave per month. The maximum an employee may accumulate varies according to union status. Upon resignation, employees who have at least five years of employment with the City and accumulated 200 hours or more of sick leave are entitled to a 50% payout. Additionally upon retirement, employees who have accumulated 200 hours or more of sick leave are entitled to a 50% payout. Any sick time accrued above the maximum allowed to be carried is paid out annually in December or May at a rate of 25%, or 50%, according to union or employment status, and the corresponding employees’ sick leave is reduced to the allowable maximum. For the governmental fund financial statements, compensated absences are accrued only when due. For the government-wide financial statements, as well as the proprietary fund financial statements, all of the outstanding vacation, compensatory time and benefits, as well as an estimate of the retirement sick-time payout for eligible employees, are recorded as a liability. Compensated absences are liquidated when mature by the various operating funds. 53 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 VII. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts in the period in which the bonds are issued. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The long-term debt of the City is serviced by various debt service funds, according to the type of debt and the funds benefiting from that debt. VIII. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future periods(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City reports deferred outflows related to pensions and other postemployment benefits (OPEB), deferred outflows related to bond refunding and excess consideration provided for acquisitions. In addition to liabilities, the statement of net position and the balance sheet of governmental funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows related to pensions and OPEB in the statement of net position, unavailable revenue reported from property taxes and grant or intergovernmental revenues in the balance sheet of governmental funds, and deferred inflows from leases in both reports. IX. Pension and Other 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 or 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. X. Net Position In the government-wide and proprietary fund financial statements, net position is reported in three categories: net investment in capital assets, restricted, and unrestricted. The net investment in capital assets balances are separately reported because capital assets make up a significant portion of net position. Restricted balances account for the portion of net position restricted by external resource providers or through enabling legislation. Unrestricted balances are the remaining balances not included in the previous two categories. 54 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 XI. Fund Balance policies In the fund financial statements, governmental funds distinguish between nonspendable and spendable fund balances. Nonspendable balances include amounts that cannot be spent because they are not in a spendable form, such as inventory or prepaid items, or because resources legally or contractually must remain intact. Spendable balances are further classified as restricted, committed, assigned and unassigned based on the relative strength of the constraints that control how specific amounts can be spent. Restricted fund balances include amounts that can be spent only for the specific purposes stipulated by external resource providers (creditors, grantors, etc.) or through enabling legislation. Committed fund balances includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Such commitments are created by legislative action of the City Council, the City’s highest level of decision making authority, by resolution or ordinance and would require the same legislative action to reverse. Ordinances and resolutions both require public votes of the Council and, although the uses may differ, they are both considered to be of the highest level of decision making authority for the City. Commitment must be made or removed prior to June 30 in order to be reported in or removed from the financial statements. Much of the authority to commit fund balance is established in the City’s Council adopted Principals of Sound Financial Management. Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. The authority to make assignments has been delegated by the City Council to the Chief Financial Officer. Unassigned fund balances represent 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 governmental fund can report a negative unassigned fund balance. As previously noted above, generally, the City would first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. The order in which the City would apply resources when multiple categories of unrestricted fund balance are available is as follows: committed, assigned and unassigned. XII. Interfund Transactions Interfund transactions, consisting of services performed for other funds or costs billed to other funds are treated as expenditures in the fund receiving the services and as a reimbursement reducing expenditures in the fund performing the services, except for utility services provided to other City departments, which are recorded as revenue in the Utility Enterprise funds. In addition, transfers are made between funds to shift resources from a fund legally authorized to receive revenue to a fund authorized to expend the revenue. XII. Stabilization arrangements The City has set aside funds for various stabilization arrangements. It is the City’s intent that situations allowing for the use of stabilization resources will be for non-routine situations. The authority for the stabilization arrangements is in the Council adopted Principles of Sound Financial Management. The governmental fund stabilization arrangements are shown as committed fund balance on the governmental fund financial statements. The City has the following stabilization arrangements at June 30, 2022:  Budget stabilization reserve – Maintained in the General Fund (10% of the average general fund revenues for the preceding five years) and the Half-Cent Sales Tax Fund (35% of the average fund revenues for the preceding five years). These reserves may be used to provide funding to deal with fluctuations in fiscal cycles and operating requirements that exceed $500,000. Any use of these reserves must be formally approved by the City Council and include a repayment plan to restore the reserve within the three fiscal years following the year in which the event occurred. Funding in excess of the stabilization reserve may be assigned by management for other purposes as approved by City 55 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Council, including debt service, capital, economic development, community promotions or other specific city operational expenditures.  Emergency reserve – Maintained in the General Fund (10% of the average general fund revenues for the preceding five years) and is for unexpected, large-scale events where damage in excess of $250,000 is incurred and immediate remedial action must be taken to protect the health and safety of residents (e.g. floods, fires, storm damage). Usage of the emergency reserve must be approved by City Council, but the City Manager may utilize these funds when immediate action must be taken to protect the health and safety of residents. The City Manager must then provide a summary report to the City Council as soon as practical on the usage of these funds. The City shall strive to restore the Emergency Reserve to the 10% level within the next fiscal year following the fiscal year in which the event occurred.  Operating Reserve - Maintained in the General Fund (15% of the average general fund revenues for the preceding five years) and is for unexpected events whose impact exceeds $500,000, such as failure of the State to remit shared revenues, unexpected mandates, unexpected loss of State Shared revenues, continuance of critical city services due to unanticipated events, or to offset unexpected loss of a significant funding source for the remainder of the fiscal year. Any use of these reserves must be formally approved by the City Council and include a repayment plan to restore the reserve within the two fiscal years following the year in which the event occurred.  Enterprise Operating Fund Working Capital Reserve – Maintained in the Water Utility Fund (25% of the operating expenses of the fund for the fiscal year), the Wastewater Utility Fund (25% of the operating expenses of the fund for the fiscal year), and the Solid Waste Utility Fund (20% of the operating expenses of the fund for the fiscal year). These reserves are to provide the City with a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing.  Rate Stabilization Reserve – In the Water and Wastewater Utility Funds (5% of the average fund revenues for the preceding three fiscal years). These funds may be used to moderate significant rate increases. In the event these funds are used, the City shall strive to restore the reserve to the 5% level within the next three fiscal years following the year in which the funds were used.  Debt Stabilization Reserve – In the Water and Wastewater Utility Funds (50% of the maximum annual debt service payment of the fund in the next five fiscal years) and the Half-Cent Sales Tax fund ($1,000,000). The Debt Stabilization Reserve is intended to provide additional security to insure the City’s ability to meet debt service obligations. In the event the Debt Stabilization Reserve is used, the City shall strive to restore the fund to the defined level within the three fiscal years following the year in which the funds were used.  Asset Maintenance Reserve - In the Water and Wastewater Utility Funds (2% of the enterprise fund infrastructure assets). The Asset Maintenance Reserve may be used to provide funding for the repair and maintenance of critical enterprise infrastructure. In the event the Asset Maintenance Reserve is used, the City shall strive to restore the fund to the defined level within the three fiscal years following the year in which the funds were used.  Capital Equipment Replacement Reserves – The City maintains various capital equipment replacement reserves to fund future replacement of certain capital equipment, primarily vehicles and computers. The annual internal charges to the operating funds are determined as part of the annual budget process. F. Property taxes The City Council adopts the annual tax levy each year on or before the third Monday in August as determined by the Maricopa County Assessor. For locally assessed property, the value is determined as of January 1 of the preceding year, known as the valuation year. For utilities and other centrally valued properties, the value is determined as of January 1 of the tax year. The City has an enforceable claim on the property when the property tax is levied. Levies are due and payable in two installments, on October 1 and March 1, and become delinquent on November 1 and May 1, respectively. Delinquent amounts bear 56 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 interest at the rate of 16 percent. A lien is placed on the property at the time the tax bill is sold. Maricopa County, at no charge to the taxing entities, bills and collects all property taxes. Public auctions for sale of delinquent real estate taxes are held in February following the May 1 date upon which the second half taxes become delinquent. G. Tax Abatements The City previously entered into tax abatement agreements as defined by GASB Statement 77. The tax abatements agreements from prior fiscal years have expired. It is the City’s policy to review each agreement individually and in the aggregate annually. For the fiscal year ended June 30, 2022, no tax abatement agreements were noted that were applicable to fiscal year 2022. H. Joint Ventures The City participates in the Regional Wireless Cooperative (RWC), an association of municipalities formed in 2008 to oversee the administration, operation, management, and maintenance of an expanding regional communications network. The RWC was formed through a governance structure founded on the principles of cooperation for the mutual benefit of all members and has expanded to serve a still-growing list of cities, towns, and fire districts, along with many other area entities who serve public safety needs. A regional radio communications network was built to seamlessly serve the interoperable communication needs of first responders and other municipal radio users in and around the Phoenix Metropolitan Region. Financial responsibilities are shared by all members based on their relative size and is measured by the number of subscriber units (radios) on the network. The City records its share of contributions to the RWC, third party contributions paid to the RWC for the benefit of the City, and equity in the joint venture in the City’s governmentwide financial statements. The City’s equity balance as of June 30, 2022 was $1,605,480 or 2.74 percent. The RWC Annual Comprehensive Financial Statement is available from the Regional Wireless Cooperative, 200 West Washington Street, 12th Floor, Phoenix, Arizona, 85003-1611. I. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities 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 expenses/expenditures during the reporting period. Actual results could differ from those estimates. J. New Accounting Principles For the year ended June 30 2022, the City implemented the provisions of the following GASB Statements:   GASB Statement No. 87, Leases. The principal objective of GASB Statement No. 87 is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases. The City has eight leases that were impacted by this Statement. GASB Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The City has no conduit debt arrangements, so this Statement had no impact on the financial statements. 57 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 GASB has issued the following pronouncements that may effect future financial position, results of operations, cash flows, or financial presentation of the City upon implementation. The City has not fully determined the effect these pronouncements will have on the City’s financial statements. GASB Statement No. 94 GASB Accounting Standards Public-Private and Public-Public Partnerships and Availability Payment Arrangements Effective Dates The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. 96 Subscription-Based Information Technology Arrangements The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. 100 Accounting Changes and Error Corrections The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2025. 101 Compensated Absences The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2025. 2. DEPOSITS AND INVESTMENTS A. Deposits The City maintains a cash and investment pool that is available for use by all funds. Certain restricted funds are not part of the City’s pool, but rather are maintained with trustees as required by contractual commitments. At June 30, 2022, the carrying amount of the City's deposits was $83,211,293 and the bank balance was $85,345,509. The entire bank balance was covered by federal depository insurance or collateralized by the City’s agent in the City’s name or in the Municipal Development Authority, Inc.'s name. The difference between the City’s carrying amount and the bank balance of $2,134,216 represents deposits in transit, outstanding checks and other reconciling items. The City maintains cash on hand balances in the form of petty cash and change funds. At June 30, 2022, the total amount of these balances was $7,399. 58 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 B. Investments The City invests in obligations that fall within the authorization of State of Arizona laws, the City’s regulations and investment policy and applicable legal and contractual commitments. Interest rate risk: In order to limit interest and market rate risk, State law and the City’s investment policy sets a maximum maturity on any investment of five years with a minimum of 20% invested for a period of one year or less. At June 30, 2022, 46.0% of the City’s investments have a maturity of less than one year. Credit risk: State law and the City’s investment policy limits the purchase of Commercial Paper to prime quality securities rated within the top two ratings by a nationally recognized statistical rating organization. The City’s investment policy limits the purchase of Corporate Bonds or Notes to those securities rated at least AA-/Aa3 or equivalent at the time of purchase by a nationally recognized statistical rating organization and with a maximum maturity of three years. The City’s investment policy also limits the purchase of Banker’s Acceptances to those securities rated Aa or better at the time of purchase by two nationally recognized statistical rating organizations and with a maximum maturity of 180 days. At June 30, 2022, the City’s investments include $7.3 million in Commercial Paper and $61.8 million in Corporate Notes. State law and the City’s investment policy also restricts investments in certificates of deposit (CD) to fully collateralized or insured from eligible Arizona depositories limited on a statewide basis by their capital structure on a quarterly basis. Such CDs are further collateralized to 110% with pledged securities held by an independent custodian approved by the City. City policy requires that securities underlying repurchase agreements must have a collateralization level of at least 102 percent of the market value of principal and accrued interest. Investment Type Agency coupon securities Commercial Paper Corporate Bonds S&P Ratings range AA+ A-1 A to AA+ The City’s investment in the State of Arizona local government investment pool is limited to a pool (Pool 7) that invests only in government securities. Pool 7 is not rated. Concentration of credit risk: The City’s investment policy sets diversification limits on both security types and length of maturity. As of June 30, 2022, the City’s investments include 49.2% in U.S. Treasury Notes, 21.8% in Money Market investments, 13.2% in Corporate securities, 11.9% in U.S. Agency Coupon securities, 2.1% in the State of Arizona local government investment pool, 1.6% in Commercial Paper, and 0.2% in Municipal Bonds. Investments in any one issuer, excluding U.S. governments that represent 5% or more of total City investments are as follows: Issuer Federal Home Loan Mortgage Association Fair Value $ 35,309,578 Custodial credit risk: To control custodial credit risk, State law and the City’s investment policy requires all securities and collateral to be held by an independent third party custodian in the City’s name. The custodian provides the City with monthly safekeeping statements. 59 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments classified as Level 2 inputs are valued using a matrix pricing model. The City has the following recurring fair value measurements as of June 30, 2022:     All U.S. Treasury securities are valued using quoted prices in active markets (Level 1) All agency coupon securities are valued using other observable inputs (Level 2) All commercial paper is valued using other observable inputs (Level 2) All corporate bonds are valued using other observable inputs (Level 2) The City's cash and investments are combined with the State's pooled investments, and therefore, do not represent specific identifiable investments. The State categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles as described above. The City's investment in the State of Arizona's local government investment pool and the money market funds are stated at fair value, which also approximates the value of the investment upon withdrawal. At June 30, 2022, the City’s total investments of $468,689,897 included the following: Investment Maturities in Years Less than 1 1-2 2-3 Fair Value Investments: U.S Treasury notes $ 49,316,531 Agency coupon securities 21,067,645 Commercial paper 7,332,780 Corporate notes 24,774,444 Municipal bonds Mutual fund-money market State of Arizona LGIP Total Investments $ 17,068,884 1,000,000 - 102,121,373 - 215,692,939 $ 34,683,889 10,080,166 $ 99,461,248 151,214,020 $ 230,631,119 - 55,751,534 - 7,332,780 19,929,597 61,772,925 1,000,000 - $ 81,853,340 102,121,373 $ 101,782,938 10,080,166 $ 468,689,897 3. DEFICITS IN FUND EQUITY/EXCESS OF EXPENDITURES OVER APPROPRIATIONS At June 30, 2022, the following fund reported a deficit in net position.  Internal Service Fund: Facilities Maintenance Fund The Facilities Maintenance Fund deficit resulted from the implementation of accounting guidance related to reporting for pensions and OPEB which requires liabilities to be presented on the face of financial statements. For the year ended June 30, 2022, expenditures, including capital outlay and transfers, did not exceed budget at the fund level (i.e. the level of budgetary control) in any funds. 60 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 4. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are recorded in the various funds and displayed in the financial statements net of an allowance for uncollectible accounts as follows at June 30, 2022. Fund Governmental activities: General Fund Receivables $ 18,552,857 Allowance $ 2,731,895 Net $ 15,820,962 Highway User Revenue Fund 582,245 - 582,245 Transportation Sales Tax Fund 2,449,945 - 2,449,945 GO Bond Debt Service Fund 181,609 164,179 17,430 Other Grants Fund 48,922 - 48,922 Other Governmental Funds 584,545 17,937 566,608 Total governmental funds Internal Service Funds $ 22,400,123 $ 2,914,011 $ 19,486,112 $ 45,706 $ - $ 45,706 $ 7,732,583 $ $ 7,015,349 Business-type activities: Water Utility Fund 717,234 Wastewater Utility Fund 3,451,393 503,511 2,947,882 Solid Waste Utility Fund 2,153,019 320,889 1,832,130 Stadium Fund 1,610,186 - 1,610,186 Storm Drain Utility Fund 207,518 32,620 174,898 Total enterprise funds 15,154,699 1,574,254 13,580,445 Grand totals $ 37,600,528 $ 4,488,265 $ 33,112,263 5. DUE FROM OTHER GOVERNMENTS The City has due from other government receivables from various governments, including the Federal, State and County government. At June 30, 2022, significant receivables due to the City included $1,016,535 from the State of Arizona for State Shared Sales Tax revenues recorded in the General fund, $1,401,401 Highway User Revenue Fees revenues recorded in the Highway User Revenue Fund, $443,569 from the federal government for community development block grants, and $371,759 from the federal government for transit grant revenues. Most other receivables are comprised of taxes or various grants due from other governments and agencies. 61 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 6. CAPITAL ASSETS A summary of capital asset activity, for the government-wide financial statements, for the year ended June 30, 2022, follows: Governmental Activities: Non-Depreciable Assets: Work in Progress Land Total Non-Depreciable Assets Balances** June 30, 2021 $ Depreciable and Amortizable Assets: Buildings & Improvements Equipment; Furniture Vehicles Street System Park System Leased Equipment: Furniture Leased Vehicle Total Depreciable and Amortizable Assets at Historical Cost Less Accum. Depreciation: Buildings & Improvements Equipment; Furniture Vehicles Street System Park System Less Accum. Amortization: Leased Assets Balances June 30, 2022 15,586,092 $ 5,778,499 21,364,591 (19,478,643) $ (19,478,643) 24,857,538 425,218,402 450,075,940 196,345,046 59,754,250 35,119,779 840,413,971 136,777,711 41,774 9,858 1,766,067 560,738 3,885,048 30,230,975 7,127,311 - (1,026,329) - 198,111,113 60,314,988 37,978,498 870,644,946 143,905,022 41,774 9,858 1,268,462,389 43,570,139 (1,026,329) 1,311,006,199 (91,082,931) (54,986,053) (21,687,807) (571,120,818) (39,175,746) (5,032,323) (1,748,381) (3,207,491) (30,674,069) (3,563,353) 984,227 - (96,115,254) (56,734,434) (23,911,071) (601,794,887) (42,739,099) (778,053,355) Total Depreciable Assets, Net Disposals/ Transfers Out 28,750,089 $ 419,439,903 448,189,992 - Total Accum. Depreciation/Amortization Additions/ Transfers In - (19,685) 984,227 (821,314,430) (675,163) (42,102) 489,691,769 $ 938,599,026 $ 20,689,428 $ (19,520,745) $ 939,767,709 $ 65,404,031 $ 18,824,524 30,306,512 $ - (14,567,505) $ - 81,143,038 18,824,524 Total Non-Depreciable Assets 84,228,555 30,306,512 (14,567,505) 99,967,562 Depreciable assets: Buildings & Improvements Equipment; Furniture Vehicles Surface Water System Water Rights Water System Wastewater System 80,097,774 21,600,250 22,323,238 108,971,269 12,889,805 442,117,591 421,224,385 813,936 447,647 9,594,344 7,943,523 9,556,196 (138,615) (734,336) (1,270,000) - 80,097,774 22,275,571 22,036,549 118,565,613 12,889,805 448,791,114 430,780,581 Total Depreciable Assets at Historical Cost 1,109,224,312 28,355,646 (2,142,951) 1,135,437,007 Less Accum. Depreciation: Buildings & Improvements Equipment; Furniture Vehicles Surface Water System Water Rights* Water System Wastewater System (32,065,396) (18,167,710) (8,383,032) (43,850,760) (3,609,145) (189,826,719) (170,301,345) (2,313,000) (1,309,267) (1,739,010) (2,928,600) (257,796) (12,835,693) (11,356,181) 630,013 522,552 - (34,378,396) (19,476,977) (9,492,029) (46,779,360) (3,866,941) (202,139,860) (181,657,526) Total Accum. Depreciation (466,204,107) (32,739,547) 1,152,565 (497,791,089) Total Depreciable Assets, Net Business-Type Activities Capital Assets, Net 643,020,205 (4,383,901) (990,386) 637,645,918 727,248,760 $ 25,922,611 $ (15,557,891) $ 737,613,480 Business-type Activities: Non-Depreciable Assets: Work in Progress Land 490,409,034 (19,685) (44,245,302) $ *The City’s agreement with the Gila River Indian Community provides water rights to 7,000 acre-feet of water each year through 2057. ** Revised due to the implementation of GASB 87 62 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Depreciation and amortization expense was charged to governmental and business-type functions in the government-wide financial statements as follows: Governmental activities: General government Culture and recreation Public Safety Development services Highway and streets Public works Human services Total Depreciation and amortization expense Business-type activities: 3,388,087 6,870,670 3,335,938 103,035 29,986,987 511,083 49,502 Water utility * Wastewater utility Storm drain utility Stadium Solid Waste 14,312,988 11,701,193 2,928,600 2,342,819 1,453,947 44,245,302 Total Depreciation expense 32,739,547 * Excludes amoritization of goodw ill of $232,065. 7. LONG-TERM DEBT A. General obligation bonds General: General obligation (GO) bonds are issued, after approval of the City of Peoria voters at an authorized bond election, to finance the purchase or construction of major capital facilities. GO bonds are backed by the “full faith and credit” of the City and are repaid through the City’s levying of property (ad valorem) taxes. There is no legal limit on the secondary property tax used for debt service on GO bonds. Statutory Debt Limitation: Under the provisions of the Arizona Constitution, outstanding general obligation bonded debt for combined water, sewer, light, (after January 1, 1974) parks and open space, and (after December 7, 2006) public safety and transportation purposes may not exceed 20 percent of a City's net limited assessed valuation. Also, outstanding general obligation bonded debt for all other purposes may not exceed 6 percent of a City's net limited assessed valuation. B. Revenue bonds Water and Sewer Revenue Bonds: Water and Wastewater Revenue Bonds are issued for the construction, acquisition, and equipping of water and wastewater facilities and related systems and infrastructure. The bonds are backed by the revenues of the water and wastewater utilities. C. Municipal Development Authority debt obligations Municipal Development Authority (MDA) debt obligations are issued by a non-profit corporation created by the City for the purpose of financing certain capital construction projects. The MDA issues its own debt obligations, which are repaid through a lease purchase agreement with the City equal to the debt service requirements. The City can utilize the City’s excise tax, state shared revenues and other unrestricted revenues for lease payments. 63 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 D. Community Facilities District bonds Community Facilities Districts (CFD’s), are special purpose districts created specifically to acquire or construct public infrastructure within specified areas of the City. CFD’s are authorized under state law to issue general obligation (GO) or revenue bonds to be repaid by property (ad valorem) taxes levied on property within the district (for GO debt), or by specified revenues generated within the districts (revenue bonds). CFD’s are created by petition to the City Council by property owners within the area to be covered by the district, and debt may be issued in accordance with relevant state laws and regulations. Operation and maintenance expenditures, bonds and the repayment of bonds issued by these separate legal entities is the responsibility of the district, not the City. As the administrator for the district, the City collects the property taxes and makes the debt payments on behalf of the district. The City Council formed the Vistancia Community Facilities District (VCFD) in October 2002. VCFD was subsequently authorized, by the voters of the district in November 2002, to issue up to $100,000,000 in general obligation bonds to construct public infrastructure within VCFD. VCFD issued general obligation bonds of $21,250,000, $23,550,000 and $22,760,000 in fiscal years 2003, 2005, and 2007, respectively, against this authorization. The VCFD refunded all these obligations during fiscal year 2016 through the issuance of $36,985,000 in general obligation bonds. In fiscal year 2021 the VCFD refunded the remaining 2016 refunding bonds through an issuance of $20,855,000 in general obligation bonds. Additionally, VCFD issued $1,870,000 in new general obligation bonds against the original $100,000,000 authorization. The City Council formed the Vistancia West Community Facilities District (VWCFD) in August 2014. In December 2014, the VWCFD was authorized through an election to issue up to $9,000,000 of general obligation bonds to construct public infrastructure within the district. VWCFD issued taxable general obligation bonds of $35,000 in fiscal year 2015, $3,000,000 in fiscal year 2017, and $2,590,000 in fiscal year 2020. The City Council formed the Vistancia North Community Facilities District (VNCFD) in June 2020. In October 2020, the VNCFD was authorized through an election to issue up to $50,000,000 of general obligation bonds to construct public infrastructure within the district. VNCFD issued a short-term taxable general obligation bond of $15,987 in fiscal year 2022 which is recorded as a fund liability. The City Council formed the Mystic at Lake Pleasant Heights Community Facilities District (MCFD) in June 2020. In October 2020, the MCFD was authorized through an election to issue up to $65,000,000 of general obligation bonds to construct public infrastructure within the district. MCFD issued a short-term taxable general obligation bond of $56,572 in fiscal year 2022 which is recorded as a fund liability. E. Pledged revenues The City has pledged certain future revenues to repay specific bonded debt as follows: The City has pledged future water utility and wastewater utility revenues, net of specific operating expenses, to repay $23,280,000 in Revenue Refunding Bonds issued in 2012, $35,190,000 in Revenue Refunding Bonds issued in 2020 and $64,844,737 in Water Infrastructure Financing Authority loans issued between 2002-2017. The various bonds and loans were issued for the purchase or construction of various water or wastewater infrastructure including wells, treatment plants, pumping stations, a water utility and water and wastewater distribution or collection lines. In fiscal year 2022 the City issued $28,955,000 of Revenue Bonds for the construction of water and wastewater infrastructure. At June 30, 2022, $108,533,291 in bonds and loans remain outstanding to be repaid by future water and wastewater revenues. For the fiscal year ended June 30, 2022, the pledged revenues, net of operating expenses available for service of this debt were $21,081,299. The debt principal and interest paid on this debt in fiscal year 2022 was $10,166,886, net of amortized premium. 64 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The City has pledged certain revenues for the repayment of $43,430,000 and $3,220,000 in Municipal Development Authority (MDA) Bonds issued in 2011 and 2012 and the Pledged Excise 2018 refunding obligations, respectively. Pledged revenues for these obligations include excise taxes and state shared revenues not specifically reserved by law or other regulation to be expended for other purposes. In fiscal year 2022 the City issued $21,495,000 of Excise Tax Revenue Refunding Obligations which were used to refund $25,660,000 of MDA bonds. The refunding bonds provided the City with $894,633 in net present value savings. At June 30, 2022, $22,530,000 of MDA bonds were defeased and are not shown as a liability for the City but remained outstanding. At June 30, 2022, $1,735,000 of the Pledged Excise 2018 obligation and $21,495,000 of the Excise Tax 2022 Revenue Obligations remained outstanding to be repaid by these future revenues. The obligations were issued to construct various City operational facilities and refund prior MDA bonds. For the fiscal year ended June 30, 2022, the pledged revenues, net of operating expenses available to service this debt were $191,409,417. The debt principal and interest paid on this debt in fiscal year 2022 was $3,614,220. The City has pledged certain revenues for the repayment of $25,755,000 of the Pledged Transportation 2018 refunding obligations. The obligations were issued to refund prior MDA bonds originally issued to construct transportation infrastructure. Pledged revenues for this obligation include transportation sales tax, excise taxes and state shared revenues. At June 30, 2022, $13,350,000 of the Pledged Transportation 2018 obligations remained outstanding to be repaid by future revenues. For the fiscal year ended June 30, 2022, the pledged revenues, net of operating expenses available to service this debt were $207,158,705. The debt principal and interest paid on this debt in fiscal year 2022 was $3,520,937. F. Direct Purchase and Loan Obligations In September 2017, the City entered into a New Clean Renewable Energy Bond (NCREB) agreement to provide financing for solar renewable energy projects at several locations throughout the City. The City borrowed $5,199,304 for a term of 20 years, at a rate of 4.23%. The majority of the debt service payments will be funded from expected savings on the City’s electricity bills. In the event of default, the Lessor may take whatever action at law or in equity may appear necessary or desirable to enforce its rights under this Agreement or the Escrow Agreement or as a secured party in any or all of the Equipment or the Escrow Account or the Delivery Costs Account. G. Tables The following schedule summarizes the City’s long-term liability activity for the year ended June 30, 2022: Governmental activities: Bonds payable: General obligation bonds General obligation WIFA loans MDA debt obligations Excise tax revenue obligations Direct purchase and loan obligations CFD bonds Total bonds payable Net pension and other postemployment benefits liability Compensated absences Claims payable Leases payable Deferred bond premium Governmental activities totals Business-type activities: Bonds and loans payable: Revenue bonds WIFA loans Net pension and other postemployment benefits liability Compensated absences Deferred bond premium Business-type activities totals Beginning Balance* $ $ $ $ 120,185,000 3,954,426 27,860,000 23,415,375 27,560,000 202,974,801 195,055,086 16,149,010 8,217,813 51,633 11,810,385 434,258,728 35,990,000 33,239,660 17,179,127 1,649,180 5,341,911 93,399,878 Additions $ $ $ $ 55,880,000 21,495,000 77,375,000 13,498,503 18,259,479 8,086,575 117,219,557 28,955,000 18,652,689 1,785,362 1,819,414 51,212,465 * Revised due to implementation of GASB 87 65 Reductions $ $ $ $ 14,045,000 230,028 27,860,000 3,794,051 4,080,000 50,009,079 54,290,107 12,400,023 19,526,492 19,087 2,327,859 138,572,647 5,130,000 3,174,058 4,241,366 1,563,762 682,775 14,791,961 Ending Balance Due Within One Year $ $ $ $ $ 162,020,000 3,724,398 21,495,000 19,621,324 23,480,000 230,340,722 140,764,979 17,247,490 6,950,800 32,546 17,569,101 412,905,638 59,815,000 48,718,291 12,937,761 1,870,780 6,478,550 129,820,382 $ $ $ 15,910,000 934,189 480,000 3,873,485 4,030,000 25,227,674 8,079,230 5,501,797 17,499 38,826,200 4,560,000 3,259,681 865,300 8,684,981 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Bonds and loans payable at June 30, 2022 are comprised of the following: Governmental Activities Debt General Obligation Bonds Maturity Dates Net Interest Rate Issue Amount Outstanding June 30, 2022 Series 2010 7/1/10-30 4.03 $ 29,170,000 $ Series 2012A 7/1/12-32 3.32 14,715,000 9,025,000 Series 2012B 7/1/12-22 1.75 13,690,000 1,540,000 Series 2015A 7/15/16-35 2.98 30,325,000 23,525,000 Series 2015B 7/15/16-28 2.29 66,425,000 42,765,000 Series 2019 7/15/19-39 2.65 30,420,000 26,230,000 Series 2021 7/15/22-41 1.72 55,880,000 55,880,000 $240,625,000 $ 162,020,000 $ 4,180,827 $ 3,724,398 $ 4,180,827 $ 3,724,398 $ 21,495,000 $ 21,495,000 $ 21,495,000 $ 21,495,000 $ $ Total General Obligation Bonds 3,055,000 WIFA General Obligation Loans WIFA series 2019 7/15/20-39 1.6 Total WIFA General Obligations Excise Tax/State Shared Revenue Obligations Series 2022 7/15/22-32 2.73 Total Direct Purchase and Loan Obligations Direct Purchase and Loan Obligations Taxable NCREBs 9/1/1937 4.23 Pledged Excise 2018 7/15/2025 2.01 3,220,000 1,735,000 Pledged Transportation 2018 1/15/2026 1.97 25,755,000 13,350,000 Total Direct Purchase and Loan Obligations 5,199,304 4,536,324 $ 34,174,304 $ 19,621,324 $ 19,105,000 Community Facility District Bonds VCFD – Series 2020 7/15/21-26 0.87 $ 22,725,000 VWCFD – Series 2016 7/15/18-29 4.15 3,000,000 2,200,000 VWCFD – Series 2019 7/15/20-29 4.00 2,590,000 2,175,000 Total Community Facility District Bonds $ 28,315,000 66 $ 23,480,000 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Business-Type Activities Debt Revenue Bonds Maturity Dates Net Interest Rate Issue Amount Outstanding June 30, 2022 WWW Series 2020 7/15/21-29 0.53 $ 35,190,000 $ WWW Series 2022 7/15/23-42 3.78 28,955,000 Total Revenue Bonds 30,860,000 28,955,000 $ 64,145,000 $ $ $ 59,815,000 WIFA Loans WIFA Series 2002 7/1/03-22 3.94 WIFA Series 2009 7/1/10-29 3.27 4,371,597 2,000,358 WIFA Series 2015 7/15/16-35 2.40 14,000,000 10,471,823 WIFA Series 2017 7/15/18-36 2.65 44,508,351 36,107,756 Total WIFA loans 1,964,789 $ 64,844,737 138,354 $ 48,718,291 The following table discloses the bond debt service requirements as of June 30, 2022, segregating principal and interest, for the next five years and in five-year increments thereafter. Governmental Activities* Bonds and General Obligation Loans Fiscal year 2023** Principal $ Notes from Direct Borrowings and Direct Placements Interest 17,324,189 $ Business-type Activities* Principal 7,946,981 $ Interest 3,873,485 $ Principal 483,443 $ 7,819,681 Interest $ 3,527,238 2024 18,469,719 7,458,479 3,948,221 402,279 8,728,843 3,649,088 2025 19,231,416 6,672,877 4,028,267 319,415 9,263,555 3,275,750 2026 20,059,397 5,851,967 4,088,633 234,789 9,664,245 2,881,110 2027 20,925,867 5,091,302 239,328 153,258 10,088,114 2,468,076 2028-2032 71,165,473 17,390,718 1,369,195 603,062 29,596,453 8,580,458 2033-2037 59,376,643 6,644,993 1,691,305 283,663 26,372,783 4,323,674 2038-2042 28,522,019 1,376,750 382,891 8,098 9,395,000 1,390,900 - - - - 2,110,000 2043 Totals $ 255,074,723 $ 58,434,067 $ 19,621,325 $ 2,488,007 $ 113,038,674 42,200 $ 30,138,494 *Includes required principal and estimated interest payments for approved WIFA loans that have not fully drawn as of 6/30/22, the principal payments are contractual and the loans are expected to draw in FY2023. **Includes early redemption of $3,055,000 Governmental Activities Bonds paid 7/1/2022 Long-term compensated absences and net pension and OPEB liabilities of governmental activities are expected to be liquidated by the operating funds (primarily the General Fund, Highway User Revenue Fund, Transit Fund and utility funds) as they come due. 67 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 8. RISK FINANCING ACTIVITIES The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; workers’ compensation; and health insurance. The City maintains a Risk Management Fund, an Employee Benefits Trust Fund and a Workers’ Compensation Trust Fund (presented in the Self-Insurance Fund of the Internal Service Funds) to account for and finance its uninsured risks of loss. Premiums are paid into the internal service funds by the other operating funds and are available to pay claims, claim reserves and administrative costs of the program. These interfund premiums are used to fund claim expenses reported in the internal service funds. The City uses third party administrators to monitor the workers’ compensation and health insurance claims programs. As with any risk retention program, the City is contingently liable with respect to claims beyond those actuarially projected. Risk management The City is self-insured for general liability with a $1,000,000 self- insured retention (SIR) and a $3,000,000 general aggregate. The City purchases layers of excess coverage above the underlying policy limits. The City is self-insured for auto physical damage (collision and comp) on all city vehicles valued at under $100,000. The vehicles valued over $100,000 are insured for physical damage with a $5,000 deductible. All city autos have the $1,000,000 liability SIR. City property is insured through commercial insurance coverage with a $50,000 deductible. The City has and obtains other specialized polices as needed, in addition to the yearly insurance procurement process and package of coverages and policies. The operating funds of the City pay monthly premiums to the risk management fund based upon a model taking into consideration multiple factors including prior loss experience, staffing, liability exposures, and operating budget. Premium payments to insurance carriers are made directly from the risk management fund. There have been no settlements paid in excess of insurance in any of the past three years nor has insurance coverage been significantly reduced in recent years. Workers’ compensation On July 1, 2009, the City established a workers’ compensation trust fund for work-related injuries to employees. For workers’ compensation insurance, the City is self-insured up to $2,250,000 per claim for both public safety employees and for all other employees up to an aggregate stop loss of $4,555,982 for fiscal year 2022. Commercial insurance is purchased to cover claims above the self-insurance amounts. Operating funds with employees covered under the workers’ compensation insurance program pay monthly premiums to the workers’ compensation fund based upon staffing levels. Premium payments to insurance carriers, as well as third party administrator costs are made directly from the workers’ compensation trust fund. Employee wages while off work for workers’ compensation injuries (2/3rds of weekly wages) are also paid from this fund. There have been no settlements paid in excess of insurance in the last three years, nor has insurance coverage been significantly reduced in recent years. Health insurance On January 1, 2010, the City established a health insurance trust fund for health insurance coverage for City employees and dependents. The City is self-insured for employee health claims up to $200,000 per claimant. Commercial insurance is purchased for claims in excess of those limits. Premiums are collected through contributions from employee paychecks and department budgets. COBRA participants contribute 100% of the premiums for their insurance coverage. Premiums for the medical, vision, dental, and life insurance plans are determined prior to each renewal period by estimating the costs of claims and administration of the plan based on a number of factors including: the demographics of the group, previous claims history, plan design changes and any new mandated benefits. 68 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Premium payments to insurance carriers, as well as third party administrator costs are made directly from the health insurance trust fund. There have been no settlements in excess of insurance in the past three years, nor has insurance coverage been significantly reduced in recent years. Estimated liability – The total claims liability of $6,950,800 reported in the Self-Insurance Fund at June 30, 2022, is based on the requirements of Governmental Accounting Standards Board Statement #10, which requires that liabilities be reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. The claims liability consists of $213,045 for liability/property claims, $5,064,555 for workers’ compensation claims and $1,673,200 for health insurance claims. The claims liability includes an estimated amount for claims that have been incurred but not reported (IBNR). 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. Non-incremental claims adjustment expenses are not included in the calculation. Changes in the Self-Insurance Fund’s claims liability amount (claims only, exclusive of other insurance expenses) during the last two fiscal years are as follows: Fiscal Year 2021: Risk management Beginning of Fiscal Year Liability Current Year Claims and Changes in Estimates $ $ 1,283,566 579,824 Claims Payments $ (795,341) Balance at Fiscal Year-end $ 1,068,049 Workers' comp 4,200,067 2,297,502 (1,121,388) 5,376,181 Health insurance 1,547,618 18,460,431 (18,234,466) 1,773,583 21,337,757 $ (20,151,195) $ Fiscal Year 2022: Risk management 7,031,251 $ Beginning of Fiscal Year Liability Current Year Claims and Changes in Estimates $ $ 1,068,049 (14,584) Claims Payments $ (840,420) $ 8,217,813 Balance at Fiscal Year-end $ 213,045 Workers' comp 5,376,181 842,467 (1,154,093) 5,064,555 Health insurance 1,773,583 17,431,596 (17,531,979) 1,673,200 18,259,479 $ (19,526,492) $ 8,217,813 $ $ 6,950,800 9. LEASES A. City as Lessee The City has entered into lease agreements to provide copy center equipment, a trash compactor at Rio Vista Park, and the Mayor’s vehicle. The original lease terms were four or five years. The lease assets are presented in the Government-wide financial statements and listed separately in Note 6. 69 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The following schedule summarizes the City’s lease liability activity for the year ended June 30, 2022: Description Beginning Liability Balance Rate Copier Services Lease - ACON 22918 Mayor's Car - ACON 53918 Rio Vista Trash Compactor - ACON 57116A Additions Payments Ending Liability Balance Due within one year 2.60% $ 2.60% 2.47% 26,016 $ 9,858 15,758 - $ (10,957) $ (6,640) (1,490) 15,059 $ 3,218 14,269 11,245 3,218 3,035 $ 51,633 $ - $ (19,087) $ 32,546 $ 17,499 Total The following table discloses the lease payment requirements as of June 30, 2022, segregating principal and interest, for the next five years. Governmental Activities Fiscal year Principal Interest 2023 $ 17,499 $ 594 2024 6,924 263 2025 3,189 165 2026 3,269 85 2027 1,665 12 Totals $ 32,546 $ 1,119 B. City as Lessor In 2005, the City leased property and two office buildings in the P83 district. The original lease term, including available extensions, is 75 years. The lease payments are fixed and increase 2.5% per year. The implied interest rate on the lease is 3.81% which resulted in $300,889 of interest earnings in fiscal year 2022. Lease payments totaled $195,099 resulting in an interest receivable of $105,790 and a corresponding increase to the deferred inflows related to leases. In 2011 the City leased property to a sports medicine and training facility at the Peoria Sports Complex. The original lease term, including available extensions, is 70 years. The lease payments are fixed and increase 10% every five years. The implied interest rate on the lease is 3.02% which resulted in $75,596 of interest earnings in fiscal year 2022. Lease payments totaled $56,210 resulting in an interest receivable of $19,386 and a corresponding increase to the deferred inflows related to leases. In 2017, the City leased property for the Arizona Broadway Theater. The original lease term, including available extensions, is 45 years. The lease payments are fixed for the entire term of the lease. The implied interest rate on the lease is 2.60%. In fiscal year 2022, the City recognized $19,121 in payments against the receivable and $35,679 of interest earnings. In 2018, the City leased property for a cell tower at Fire Station #4. The original lease term, including available extensions, is 25 years. The lease payments are fixed and increase 4% per year. The implied interest rate on the lease is 2.49%. In fiscal year 2022, the City recognized $16,762 in payments against the receivable and $18,768 of interest earnings. In 2021, the City leased property for a cell tower at Peoria Sports Complex. The original lease term, including available extensions, is 30 years. The lease payment has two components, an annual base rate that is fixed for the term of the lease, and a sub-lease fee that is fixed at a per sub-lessee rate. If the number of sub-lessees changes, the lease payment will change. All calculations are based on the current number of sub-lessees. The implied interest rate on the lease is 2.47%. In fiscal year 2022 the City recognized $38,248 in payments against the receivable and $39,752 of interest earnings. 70 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 10. PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The City of Peoria contributes to the pension plans described below. The City of Peoria contributes to the Elected Officials Retirement Plan; however the plan is not described below because of its relative insignificance to the financial statements. The plans are component units of the State of Arizona. A summary of pension and other postemployment benefit related items as of and for the year ended June 30, 2022, is presented below: Plan ASRS Governmental Activities Business-Type Activities PSPRS - Police PSPRS - Fire Net Pension and Other Postemployment Benefits Liability Other Postemployment Benefits Asset $ $ $ 54,551,332 12,937,761 57,872,506 28,341,141 153,702,740 Deferred Outflows of Resources 2,056,198 487,662 596,124 576,792 3,716,776 $ $ $ 14,246,956 3,378,903 40,718,101 22,579,376 80,923,336 Deferred Inflows of Resources Pension and Other Postemployment Expense $ $ $ 20,215,870 4,794,527 11,841,315 11,436,876 48,288,588 $ 3,261,927 1,058,168 7,285,849 3,586,897 15,192,841 The City of Peoria reported $56,325,353 of pension and OPEB contributions as expenditures in the governmental funds related to all plans to which it contributes. A. Arizona State Retirement System Plan Description. City of Peoria employees not covered by the other pension plans described after this section participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS is a component unit of the State of Arizona. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on the ASRS website at www.azasrs.gov. Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: Years of service and age required to receive benefit Retirement Initial Membership Date: Before July 1, 2011 On or After July 1, 2011 Sum of years and age equals 80 30 years, age 55 10 years, age 62 25 years, age 60 5 years, age 50* 10 years, age 62 Any years, age 65 5 years, age 50* Any years, age 65 Final average salary is based on Highest 36 months of last 120 months Highest 60 months of last 120 months Benefit percent per year of service 2.1% to 2.3% 2.1% to 2.3% *With actuarially reduced benefits Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a members’ death. For retired members, the retirement benefit option chosen determines the 71 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 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. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $100 per month to $260 per month depending on the age of the member and dependents. For members with 5 to 9 years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service. Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with long-term disability commencement dates after June 30, 1999, are limited to 30 years of service or the service on record as of the effective disability date if their service is greater than 30 years. Contributions. In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, statute required active ASRS members to contribute at the actuarially determined rate of 12.41 percent (12.22 percent for retirement & health insurance benefits and 0.19 percent for long-term disability) of the members’ annual covered payroll, and the City of Peoria was required by statute to contribute at the actuarially determined rate of 12.41 percent (12.01 percent for retirement, 0.21 percent for health insurance premium benefit, and 0.19 percent for longterm disability) of the members’ annual covered payroll. These percentages led to City’s contributions for the year ended June 30, 2022 of $7,387,367, $129,172, and $116,867 to the pension, health insurance premium benefit, and long-term disability plans, respectively. In addition, the City of Peoria was required by statute to contribute at the actuarially determined rate of 10.22 percent (10.13 percent for retirement, 0.00 percent for health insurance premium benefit, and 0.09 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS. Liability. The net asset and net liabilities were measured as of June 30, 2021. The total liability used to calculate the net asset or liability was determined using update procedures to roll forward the total liability from an actuarial valuation as of June 30, 2020, to the measurement date of June 30, 2021. The City's proportion of the net assets or net liability was based on the City's actual contributions to the plan relative to the total of all participating employers' contributions for the year ended June 30, 2021, and the change from its proportion measured as of June 30, 2020. At June 30, 2022, the City of Peoria reported the following asset and liabilities for its proportionate share of the ASRS’ net/pension/OPEB asset or liability. In addition, the City's proportion for each plan measured as of June 30, 2021, and the change from its proportion measured as of June 30, 2020 was: ASRS Pension Health insurance premium benefit Long-term disability Net pension/OPEB (asset) liability $ 67,382,271 (2,543,860) 106,822 72 Proportion June 30, 2021 % 0.51282 0.52213 0.51749 Increase (decrease) from June 30, 2020 (0.010) (0.010) (0.011) CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Pension/OPEB Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2022, the City of Peoria recognized the following pension and OPEB expense for ASRS. ASRS Pension/OPEB expense Pension $ 4,474,564 Health insurance premium benefit (232,041) Long-term disability 77,572 Deferred outflows/inflows of resources. At June 30, 2022, the City of Peoria reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Health insurance premium benefit Deferred Deferred outflows of inflows of resources resources Pension Deferred outflows of resources Differences between expected and actual experience Changes of assumptions or other inputs Difference between projected and actual earnings on plan investments Changes in proportion and differences between City contributions and proportionate share of contributions City contributions subsequent to the measurement date Total $ Deferred inflows of resources 1,027,181 $ $ - $ 882,215 $ 30,857 $ 8,705 8,770,341 - 126,117 102,849 34,163 134,598 - 21,349,074 - 943,644 - 73,982 - 1,497,712 3,794 715 - 16,903 7,387,367 $ - Long-term disability Deferred Deferred outflows of inflows of resources resources 17,184,889 $ 22,846,786 129,172 $ 259,083 $ 1,929,423 116,867 $ 181,887 $ 234,188 The deferred outflows of resources related to ASRS pensions and OPEB resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as an increase of the net asset or a reduction of the net liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions and OPEB will be recognized as expenses as follows: Year ending June 30 2023 2024 2025 2026 2027 Thereafter $ Pension (724,384) (261,452) (4,706,377) (7,357,051) - 73 Health insurance premium benefit $ (422,162) (404,508) (443,376) (490,108) (39,358) - Long-term disability $ (23,569) (22,282) (24,957) (36,150) (14,747) (47,463) CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial valuation date June 30, 2020 Actuarial roll forward date June 30, 2021 Actuarial cost method Entry Age Normal Investment rate of return 7% Projected salary increases 2.9 - 8.4% for pensions/not applicable to OPEB Inflation 2.3% Permanent benefit increase Included for pensions/not applicable for OPEB Mortality rates Recovery rates 2017 SRA Scale U-MP for pensions and health insurance premium benefit 2012 GLDT for long-tem disability Healthcare cost trend rate Not applicable 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, 2016. A new experience study for the period ended June 30, 2020 will be utilized by the ASRS for future actuarial valuations. The long-term expected rate of return on ASRS pension plan investments was determined to be 7 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, excluding any expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class of ASRS are summarized in the following table: Target Allocation Long-Term expected geometric real rate of return Equity Fixed income - credit Fixed income - interest rate sensitive 50% 20% 10% 4.90% 5.20% 0.70% Real estate 20% 5.70% Total 100% Asset Class Discount Rate. The discount rate used to measure the ASRS total pension/OPEB liability was 7 percent. The rate was lowered in the roll forward from 7.5% which was used for the actuarial assumptions at the valuation date. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension/OPEB liability. 74 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Sensitivity of the Proportionate Share of the Net Pension/OPEB (Asset) Liability to Changes in the Discount Rate. The following table presents the City of Peoria’s proportionate share of the net pension/OPEB (asset) liability calculated using the discount rate of 7.0 percent, as well as what the proportionate share of the net pension/OPEB (asset) liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: Net pension liability Net insurance premium benefit liability (asset) Net long-term disability liability 1% Decrease (6.0%) $105,986,669 (1,684,300) 139,098 Current Discount Rate (7.0%) $67,382,271 (2,543,860) 106,822 1% Increase (8.0%) $35,196,885 (3,274,770) 75,596 Plan Fiduciary Net Position. Detailed information about the plans’ fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov. B. Public Safety Personnel Retirement System Plan Descriptions. City of Peoria public safety employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). The PSPRS administers agent and cost-sharing multiple-employer defined benefit pension plans and agent and cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plans. A nine-member board known as the Board of Trustees and the participating local boards govern the PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. The PSPRS issues a publicly available financial report that includes their financial statements and required supplementary information. The report is available on the PSPRS website at www.psprs.com. Benefits Provided. The PSPRS provides retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefits terms. Certain retirement and disability benefits are calculated on the basis of age, average monthly compensation, and service credit as follows. See the publicly available PSPRS financial report for additional benefits information. Initial Membership Date: Years of service and age required to receive benefit Final average salary is based on Benefit percent Normal retirement Before January 1, 2012 20 years of service and any age or 15 years of service and age 62 On or After January 1, 2012 and before July 1, 2017 25 years of service or 15 years of credited service, and age 52.5 On or after July 1, 2017 15 years of credited service, age 52.5* 15 or more years of service, age 55 Highest 36 consecutive months of last 20 years Highest 60 consecutive months of last 20 years Highest 60 consecutive months of last 15 years 50% less 2.0% for each year of credited service less than 20 years or plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 1.5 to 2.5% per year of credited service, not to exceed 80% Accidental disability retirement 50% or normal retirement, whichever is greater Catastrophic disability retirement 90% for the first 60 months reduced to either 62.5% or normal retirement, whichever is greater Survivor benefit Retired members Active members 80% to 100% of retired member’s pension benefit 80% to 100% of accidental disability retirement benefit or 100% of average monthly compensation if death was the result of injuries received on the job 75 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Retirement benefits for employees who became a member on or after July 1, 2017, (Tier 3 members) are contingent upon which retirement plan is chosen by a member. This group of members has an irrevocable choice of enrolling in either the defined benefit plan (police employees) or a hybrid plan, which has elements of both a defined benefit and defined contribution plan (fire employees), or a defined contribution plan in lieu of the respective choices listed above (both police and fire employees). If enrolling in the defined benefit plan or hybrid plan, benefits (defined benefit portion only for the hybrid plan) commence the first day of the month following termination of employment and are based upon the following:  Age 55 with 15 or more years of credited service: average monthly benefit compensation times a multiplier that varies by years of service, from 1.5 percent to 2.5 percent per year of service, times the number of years of service - up to a maximum of 80 percent of the average monthly benefit compensation.  An individual who became a member on or after July 1, 2017, and reaches age 52.5 with at least 15 years of credited service may take an early retirement; however, the amount of his or her retirement benefit is actuarially reduced. Retirement and survivor benefits are subject to automatic cost-of-living adjustments. The adjustments are based on inflation for PSPRS. In addition, the Legislature may enact permanent one-time benefit increases after a Joint Legislative Budget committee analysis of the increase’s effect on the plan. PSPRS also provides temporary disability benefits of 50 percent of the member's compensation for up to 12 months. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. Benefits range from $100 per month to $260 per month depending on the age of the member and dependents. Employees Covered by Benefit Terms. At June 30, 2022, the following employees were covered by the agent pension plan’s benefit terms: Inactive employees or beneficiaries currently receiving benefits PSPRS - POLICE Pension Health PSPRS - FIRE Pension Health 109 109 49 49 Inactive employees entitled to but not yet receiving benefits 36 12 21 18 Active employees 143 143 142 142 Total 288 264 212 209 76 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 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. Contributions rates for the year ended June 30, 2022, are indicated below. Rates are a percentage of active members’ annual covered payroll. Active members - pension City of Peoria Pension Health Insurance PSPRS Police PSPRS Fire 7.65% 7.65% 46.88% 0.35% 36.60% 0.26% In addition, the City of Peoria was required by statute to contribute at the actuarially determined rate of 29.61 percent for the PSPRS Police, and 19.25 percent for the PSPRS Fire, of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to the PSPRS. For the agent plans, the contributions to the pension plan and contributions for the health insurance premium benefit for the year ended were: Pension: Contributions made Health insurance premium benefit: Contributions made PSPRS Police PSPRS Fire $36,002,212 $13,927,344 156,759 68,967 Asset and Liability. At June 30, 2022, the City of Peoria reported the following assets and liabilities. PSPRS - Police PSPRS – Fire Net pensionliability $ 57,872,506 28,341,141 Net OPEB liability $ - Net OPEB asset $ (596,124) (576,792) The net assets and net liabilities were measured as of June 30, 2021, and the total liability used to calculate the net asset or liability was determined by an actuarial valuation as of that date. 77 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial Valuation Date June 30, 2020 Actuarial Roll Forward Date June 30, 2021 Actuarial Cost Method Entry Age Normal Inflation Salary Increases 2.50% for pensions/not applicable for OPEB 3.50%-7.50%, including inflation, for pensions/not applicable for OPEB Tier 1/2 Investment Rate of Return 7.30% Tier 3 Investment Rate of Return 7.00% Active Lives: PubS-2010 Employee mortality, loaded 110% for males and females, projected with future mortality improvements reflected generationally using 75% of scale MP-2020. 100% of active deaths are assumed to be in the line of duty. Mortality Rates Inactive Lives: PubS-2010 Healthy Retiree mortality, loaded 110% for males and females, projected with future mortality improvements reflected generationally using 75% of scale MP-2020. Beneficiaries: PubS-2010 Survivor mortality, projected with future mortality improvements reflected generationally using 75% of scale MP2020. Disabled Lives: PubS-2010 Disabled mortality, projected with future mortality improvements reflected generationally using 75% of scale MP2020. The mortality assumptions sufficiently accommodate anticipated future mortality improvements. Actuarial assumptions used in the June 30, 2020 valuation rolled forward to June 30, 2021 were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. 78 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The long-term expected rate of return on PSPRS plan investments was determined to be 7.30 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class U.S. Public Equity Target Allocation Long-Term Expected Geometric Real Rate of Return* 24% 4.08% International Equity 16% 5.20% Global Private Equity 20% 7.67% Other Assets (Capital Appreciation) 7% 5.43% Core Bonds 2% 0.42% Private Credit 20% 5.74% Diversifying Strategies 10% 3.99% Cash - Mellon 1% (0.31)% Total 100% Discount Rates. At June 30 2021, the discount rate used to measure the PSPRS total pension/OPEB liabilities was 7.30 percent, which was the same as the discount rate used as of June 30, 2020. The projection of cash flows used to determine the PSPRS discount rates assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, PSPRS plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension/OPEB liability. 79 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Changes in the Net Pension/OPEB Liability Pension Increase (decrease) PSPRS - POLICE Balances at June 30, 2020 Changes for the year: Service cost Interest on the total liability Differences between expected and actual experience in the measurement of the liability Changes of assumptions or other inputs Contributions – employer Contributions – employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Net changes Balances at June 30, 2021 PSPRS - FIRE Balances at June 30, 2020 Changes for the year: Service cost Interest on the total liability Differences between expected and actual experience in the measurement of the liability Changes of assumptions or other inputs Contributions – employer Contributions – employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net changes Balances at June 30, 2021 Total Pension Liability Plan Fiduciary Net Position Net Pension Liability Health insurance premium benefit Increase (decrease) Plan Total OPEB Fiduciary Net Net OPEB Liability Position Asset $ 151,875,467 $ 77,047,402 $74,828,065 $ 2,225,928 3,403,053 11,102,550 64,399 163,960 - 64,399 163,960 3,403,053 11,102,550 - $ 2,147,242 $ 78,686 749,764 - 8,091,143 1,323,822 22,902,588 749,764 (8,091,143) (1,323,822) (22,902,588) (271,397) - 52,644 581,519 (271,397) (52,644) (581,519) (6,377,577) 8,877,790 $ 160,753,257 (6,377,577) (106,627) 25,833,349 $ 102,880,751 106,627 (16,955,559) $57,872,506 (88,596) (131,634) $ 2,094,294 (88,596) (2,391) 543,176 $ 2,690,418 2,391 (674,810) $ (596,124) Total Pension Liability Pension Increase (decrease) Plan Fiduciary Net Position Net Pension Liability Health insurance premium benefit Increase (decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Asset $ 120,503,324 $ 74,234,112 $46,269,212 $ 1,802,764 3,318,890 8,884,264 54,849 133,505 - 54,849 133,505 3,318,890 8,884,264 - $ 1,837,638 $ (34,874) 1,734,765 - 8,624,902 1,412,514 21,930,705 1,734,765 (8,624,902) (1,412,514) (21,930,705) (184,074) - 48,285 499,969 (184,074) (48,285) (499,969) (4,239,948) 9,697,971 $ 130,201,295 (4,239,948) (102,023) (108) 27,626,042 $ 101,860,154 102,023 108 (17,928,071) $28,341,141 (57,545) (53,265) $ 1,749,499 (57,545) (2,056) 488,653 $ 2,326,291 2,056 (541,918) $ (576,792) 80 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Sensitivity of the Net Pension/OPEB (Asset) Liability to Changes in the Discount Rate. The following table presents City of Peoria’s net pension/OPEB (assets) liabilities calculated using the discount rates noted above, as well as what the net pension/OPEB (asset) liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: 1% Decrease Current Discount Rate 1% Increase PSPRS – Police Rate Net pension (asset) liability Net OPEB (asset) liability 6.30% $ 81,220,525 (348,281) $ 7.30% 57,872,506 (596,124) 8.30% $ 38,940,781 (804,363) PSPRS – Fire Rate Net pension (asset) liability Net OPEB (asset) liability 6.30% $ 47,885,308 (366,671) $ 7.30% 28,341,141 (576,792) 8.30% $ 12,485,335 (753,683) 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. Expense. For the year ended June 30, 2022, the City of Peoria recognized the following pension and OPEB expense: PSPRS - Police PSPRS - Fire Pension Expense $ 7,394,573 3,626,856 81 OPEB Expense $ (108,724) (39,959) CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Deferred Outflows/Inflows of Resources. At June 30, 2022, the City of Peoria reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Health Insurance Benefit Pension Deferred Outflows of Resources PSPRS – Police Differences between expected and actual experience Changes of assumptions or other inputs $ Deferred Inflows of Resources 2,516,832 $ 551,138 1,999,329 Net difference between projected and actual earnings on plan investments 40,518,373 28,581 $ 11,100,454 $ 25,479 - 245,852 156,759 $ 469,530 14,388 10,549,316 36,002,212 Total $ $ - - Contributions subsequent to the measurement date Premium Deferred Deferred Outflows of Inflows of Resources Resources 199,728 $ 740,861 Health Insurance Benefit Pension Deferred Outflows of Resources PSPRS – Fire Differences between expected and actual experience Changes of assumptions or other inputs $ Deferred Inflows of Resources 5,054,412 $ 856,717 3,436,923 Net difference between projected and actual earnings on plan investments Contributions subsequent to the measurement date - 22,418,679 $ - 9,926,176 13,927,344 Total $ Premium Deferred Deferred Outflows of Inflows of Resources Resources $ 10,782,893 82 $ 80,243 $ 378,385 11,487 64,006 - 211,592 68,967 - 160,697 $ 653,983 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The amounts reported as deferred outflows of resources related to pension and OPEB resulting from contributions subsequent to the measurement date will be recognized as an increase in the net asset or a reduction of the net liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized as expenses as follows: Year ending June 30: 2023 2024 2025 2026 2027 Thereafter Pension PSPRS - Police PSPRS - Fire $ (903,988) $ (224,318) (1,624,358) (713,296) (1,660,768) (1,309,342) (2,520,140) (2,264,434) 124,961 633,292 1,586,540 PSPRS - Police $ (174,080) (153,373) (158,352) (171,942) (40,145) - OPEB $ PSPRS - Fire (89,307) (90,689) (97,570) (119,654) (49,465) (115,568) 11. DEFERRED COMPENSATION PLAN The City offers deferred compensation plans to its employees and management employees, created in accordance with Internal Revenue Code Section 457 and Section 401a. The plans permit participants to defer contributions into the plan until future years. The deferred compensation is not available to employees, under either plan, until termination, retirement, death or unforeseeable emergency. The City’s fiduciary responsibility is that of exercising “due care” in selecting a third-party administrator. Federal legislation requires that Section 457 and 401a plan assets be held in trust for employees. This means that employee assets held in Section 457 and 401a plans are not the property of the City and are not subject to claims of the City’s general creditors. Also, the City exercises no administrative control nor makes investment decisions. Therefore, the deferred compensation assets are not included in the City’s Basic Financial Statements. 12. CONTINGENCIES, COMMITMENTS AND OTHER CLAIMS The City is involved in litigation arising in the ordinary course of its operations. The City believes that its ultimate liability, if any, in connection with these matters will not have a material adverse effect on the City's financial position, changes in financial position, or liquidity. The City is self-insured for the first $1,000,000 of any occurrence and then has additional coverage up to $25.0 million. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. The City has development agreements where, in return for developers constructing public infrastructure, the City agreed to reimburse the developer for the cost of such infrastructure at some future time contingent on the collection of impact fees and sales tax revenues. The City had the following significant commitments as of June 30, 2022:      $1,508,965 in the GO Bonds Capital Projects Fund for Fire Station #5 Expansion. $2,050,509 in the GO Bonds Capital Projects Fund for Streets Rehabilitation and Construction. $11,702,375 in the Water and Wastewater Utility Funds for Beardsley WRF Equipment Upgrade and Expansion. $2,831,573 in the Water and Wastewater Utility Funds for Jomax WRF Operations Building. $2,134,430 in the Water Utility Fund for Wellhead Water Quality Mitigation. 83 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 13. INTERFUND TRANSACTIONS, RECEIVABLE AND PAYABLE BALANCES At June 30, 2022, there were interfund loans from the General Fund to the GO Bond Capital Projects Fund and the Storm Drain Utility Fund to cover deficit cash balances in those funds. The loans are expected to be repaid in the following year. The interfund transfers generally fall within one of the following categories: 1) debt service payments made from a debt service fund but funded from an operating fund; 2) subsidy transfers; 3) transfers to fund internal service equipment replacement funds; or 4) capital assets purchased or constructed in one fund, but capitalized in another. There were no significant transfers during fiscal year 2022 that were either nonroutine in nature or inconsistent with the activities of the fund making the transfer. The following interfund transfers are reflected in the fund financial statements for the year ended June 30, 2022: Fund Governmental funds: General Fund Highway User Revenue Fund Transportation Sales Tax Fund Development Fee Fund Other Grant Fund Non-Major Governmental Funds Total governmental funds Enterprise funds: Water Utility Fund Wastewater Utility Fund Solid Waste Utility Fund Stadium Fund Storm Drain Utility Fund Total enterprise funds Internal Service funds Transfers out $ 10,502,479 118,994 6,877,246 224,497 1,460 17,724,676 Transfers in $ 4,034,730 694,680 67,097 100,000 4,896,507 66,229 $ Grand totals 84 22,687,412 860,000 1,092,584 171,050 13,482 9,285,374 11,422,490 569,074 3,159,696 119,681 4,042,195 7,376 7,898,022 3,366,900 $ 22,687,412 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 14. STABILIZATION ARRANGEMENTS The committed and assigned fund balances of the governmental funds are shown on the fund financial statements. The following table presents the City’s stabilization reserves included in the proprietary fund financial statements at June 30, 2022: Water Utility Fund: Working capital policy reserve Rate stabilization Debt stabilization System asset maintenance Capital equipment replacement $ Wastewater Utility Fund: Working capital policy reserve Rate stabilization Debt stabilization System asset maintenance Capital equipment replacement 10,301,632 2,422,854 4,011,089 10,689,219 1,114,420 28,539,214 5,078,924 1,171,496 2,166,957 9,207,055 902,726 18,527,158 Solid Waste Utility Fund: Working capital policy reserve Capital equipment replacement 3,066,679 3,565,285 6,631,964 Stadium Fund: Capital equipment replacement Total enterprise funds $ Internal Service Funds: Capital equipment replacement Risk management purpose Total internal service funds $ $ 493,945 54,192,281 17,403,557 7,346,118 24,749,675 15. RESTATEMENT OF BEGINNING BALANCES Net position beginning balances on the government-wide Statement of Activities and on the Statement of Revenues, Expenses and Changes in Fund Net Position have been restated as of July 1, 2021 due to the recording of a WIFA loan in fiscal year 2021 as a liability in the Storm Drain Utility Fund. The loan is general debt which was used to construct storm drain assets and at the time of issuance was to be repaid from user fees. However, upon making the first payment, it was determined that the debt would be repaid from secondary property taxes and was therefore moved to the governmental activities. Enterprise Business-Type Governmental Funds/Storm Activities Activities Drain Utility Net position/fund balances as of June 30, 2021 $ 884,031,570 $ 756,633,056 $ 69,530,889 Reclassification of loan payable from Storm Drain Utility Fund to Governmental Activities Net position/fund balances as of July 1, 2021, as restated (3,972,048) $ 880,059,522 85 3,972,048 $ 760,605,104 3,972,048 $ 73,502,937 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS Both the Water Utility Fund and the Wastewater Utility Fund have revenue streams pledged in support of outstanding revenue bonds but since both segments are discretely presented in the proprietary fund financial statements, all required segment information is presented on the face of those statements. 17. SUBSEQUENT EVENTS On July 6, 2022, Fitch ratings service increased its long-term rating to AA+ from AA for the City’s Water and Wastewater Revenue Bonds. In August 2022, KLOS Enterprises exercised their option to purchase the Arizona Broadway Theater property. The purchase will result in the reduction of lease receivables and deferred inflows from leases in fiscal year 2023. On November 2, 2022 the City issued $23,810,000 in General Obligation Bonds. The bonds will be used to construct various Streets, Drainage and Public Safety projects. 86 Required Supplementary Information CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION/OPEB LIABILITY COST-SHARING PLANS JUNE 30, 2022 Reporting Fiscal Year (Measurement Date) ASRS-Pension Proportion of the net pension liability Proportionate share of the net pension liability Covered payroll Proportionate share of the net pension liability as a percentage of its employee payroll Plan fiduciary net position as a percentage of the total pension liability 2022 (2021) 2021 (2020) 2020 (2019) 0.512820% $ 67,382,271 $ 57,978,944 0.523230% $ 90,657,551 $ 57,428,297 0.532380% $ 77,467,484 $ 56,417,665 116.22% 78.58% 157.86% 69.33% 137.31% 73.24% 2019 (2018) $ $ 0.546250% 76,182,651 54,343,055 2018 (2017) 0.571460% 89,022,329 53,419,833 $ $ 140.19% 73.40% 166.65% 69.92% 2017 (2016) $ $ 0.542460% 87,558,493 50,820,065 2016 (2015) $ $ 172.29% 67.06% 0.526670% 82,036,552 47,561,194 0.520455% $ 77,009,675 $ 46,266,286 172.49% 68.35% 166.45% 69.49% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. ASRS-Health insurance premium benefit Proportion of the net OPEB (assset) Proportionate share of the net OPEB (asset) Covered payroll Proportionate share of the net OPEB (asset) as a percentage of its employee payroll Plan fiduciary net position as a percentage of the total OPEB liability Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) 2020 (2019) 0.522130% $ (2,543,860) $ 57,978,944 0.532290% $ (376,859) $ 57,428,297 0.541370% $ (149,610) $ 56,417,665 -4.39% 130.24% -0.66% 104.33% -0.27% 101.62% 2019 (2018) $ $ 0.554120% (199,533) 54,343,055 2018 (2017) 0.577940% (314,630) 53,419,833 $ $ -0.37% 102.20% -0.59% 103.57% NOTE: The health insurance premium benefit schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. ASRS-Long-term disability Proportion of the net OPEB liability Proportionate share of the net OPEB liability Covered payroll Proportionate share of the net OPEB liability as a percentage of its employee payroll Plan fiduciary net position as a percentage of the total OPEB liability Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) 2020 (2019) 0.517490% $ 106,822 $ 57,978,944 0.528200% $ 400,699 $ 57,428,297 0.537820% $ 350,360 $ 56,417,665 0.18% 90.38% 0.70% 68.01% 0.62% 72.85% 2019 (2018) $ $ 0.550920% 287,858 54,343,055 2018 (2017) $ $ 0.53% 77.83% 0.569260% 206,344 53,419,833 0.39% 84.44% NOTE: The long-term disability benefit schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension/OPEB plan schedules 87 2015 (2014) CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2022 Public Safety Personnel Retirement System Peoria Police Department 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 pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Hall/Parker Settlement Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Adjustment to beginning of year Plan fiduciary net position - ending (b) Net pension liability - ending (a)-(b) Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension liability as a percentage of covered payroll Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) $ $ 3,403,053 11,102,550 - 3,529,413 10,379,460 - 2020 (2019) $ 3,517,607 9,742,131 - 2019 (2018) $ 3,437,849 9,195,638 - 2018 (2017) $ 3,497,564 8,207,737 1,019,089 $ 2017 (2016) 2016 (2015) 2015 (2014) 2,658,484 7,450,121 6,569,592 $ 2,557,053 7,075,581 - $ 2,556,976 6,074,980 1,228,208 749,764 - 2,182,003 - (152,876) 3,131,115 (1,331,798) - 5,141,159 2,469,996 (1,372,059) 4,270,128 341,776 - (672,105) 8,103,978 (6,377,577) 8,877,790 151,875,467 $ 160,753,257 (5,740,752) 10,350,124 141,525,343 $ 151,875,467 (5,690,900) 10,547,077 130,978,266 $ 141,525,343 (5,739,761) 5,561,928 125,416,338 $ 130,978,266 (5,213,832) 15,121,713 110,294,625 $ 125,416,338 (5,716,802) 13,859,464 96,435,161 $ 110,294,625 (4,791,028) 5,183,382 91,251,779 $ 96,435,161 (4,300,112) 12,991,925 78,259,854 $ 91,251,779 $ $ $ $ $ $ 4,729,872 1,732,502 320,234 $ 3,254,563 1,689,030 1,821,818 $ 2,907,800 1,491,406 5,954,387 8,091,143 1,323,822 22,902,588 7,327,021 1,447,635 998,101 7,419,726 1,254,178 3,898,429 6,622,615 1,379,152 4,232,822 5,122,411 2,723,948 6,734,348 (6,377,577) (106,627) 25,833,349 77,047,402 4 $ 102,880,755 (5,740,752) (81,409) 3,950,596 73,096,802 4 $ 77,047,402 (5,690,900) (68,704) (4,128) 6,808,601 66,335,122 (46,921) $ 73,096,802 (5,739,761) (2,283,693) (65,122) 40,695 4,186,708 62,148,414 $ 66,335,122 (5,213,832) (59,988) (21,848) 9,285,039 52,863,375 $ 62,148,414 (5,716,802) (46,480) 37,100 1,056,426 51,806,949 $ 52,863,375 (4,791,028) (44,835) (56,762) 1,872,786 49,934,163 $ 51,806,949 (4,300,112) (1,313,936) 4,739,545 45,194,618 $ 49,934,163 57,872,502 74,828,065 68,428,541 64,643,144 63,267,924 57,431,250 44,628,212 41,317,616 64.00% 50.73% 51.65% 50.65% 49.55% 47.93% 53.72% 54.72% $ 16,653,104 $ 17,044,648 $ 16,897,694 $ 16,153,506 $ 15,387,963 $ 13,992,947 $ 13,449,859 $ 13,035,510 347.52% 439.01% 404.96% 400.18% 411.15% 410.43% 331.81% 316.96% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension/OPEB plan schedules 88 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABIILTY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2022 Public Safety Personnel Retirement System Peoria Fire Department 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 pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Hall/Parker Settlement Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position - beginning Adjustment to beginning of year Plan fiduciary net position - ending (b) Net pension liability - ending (a)-(b) Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension liability as a percentage of covered payroll Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) $ $ 3,318,890 8,884,264 - 3,259,480 8,199,149 - 2020 (2019) $ 3,230,796 7,557,042 - 2019 (2018) $ 3,070,924 7,066,051 - 2018 (2017) $ 3,111,892 6,395,230 466,111 $ 2017 (2016) 2016 (2015) 2015 (2014) 2,379,652 5,434,649 6,700,272 $ 2,056,517 4,952,998 - $ 2,013,025 4,197,224 453,523 1,734,765 - 2,094,984 - 1,198,203 2,087,419 (1,450,577) - 1,834,916 1,708,934 86,478 3,273,059 809,490 - 660,641 3,815,327 (4,239,948) 9,697,971 120,503,324 $ 130,201,295 (4,215,838) 9,337,775 111,165,549 $ 120,503,324 (3,598,608) 10,474,852 100,690,697 $ 111,165,549 (3,894,840) 4,791,558 95,899,139 $ 100,690,697 (2,663,473) 10,853,610 85,045,529 $ 95,899,139 (1,739,905) 16,134,205 68,911,324 $ 85,045,529 (1,949,881) 5,869,124 63,042,200 $ 68,911,324 (1,117,704) 10,022,036 53,020,164 $ 63,042,200 $ $ $ $ $ $ 3,162,518 1,375,202 298,901 $ 1,866,365 1,238,541 1,710,692 $ 1,885,422 1,168,186 5,369,649 8,624,902 1,412,514 21,930,705 5,095,674 1,217,298 967,950 4,632,927 1,165,663 3,740,932 4,749,672 1,439,943 4,205,458 3,596,394 1,593,634 6,425,067 (4,239,948) (102,023) (108) 27,626,042 74,234,112 $ 101,860,154 (4,215,838) (78,924) 2,986,160 71,247,948 4 $ 74,234,112 (3,598,608) (65,997) 5,874,917 65,392,298 (19,267) $ 71,247,948 (3,894,840) (1,926,795) (64,663) 44,976 4,553,751 60,838,547 $ 65,392,298 (2,663,473) (57,251) 671 8,895,042 51,943,505 $ 60,838,547 (1,739,905) (43,410) 87,273 3,140,579 48,802,926 $ 51,943,505 (1,949,881) (42,126) (35,356) 2,788,235 46,014,691 $ 48,802,926 (1,117,704) (1,063,021) 6,242,532 39,772,159 $ 46,014,691 28,341,141 46,269,212 39,917,601 35,298,399 35,060,592 33,102,024 20,108,398 17,027,509 78.23% 61.60% 64.09% 64.94% 63.44% 61.08% 70.82% 72.99% $ 13,051,041 $ 13,658,235 $ 13,822,178 $ 12,085,624 $ 11,543,146 $ 11,796,929 $ 11,068,029 $ 10,934,868 217.16% 338.76% 288.79% 292.07% 303.74% 280.60% 181.68% 155.72% NOTE: The pension schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension/OPEB plan schedules 89 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2022 Public Safety Personnel Retirement System Peoria Police Department Total OPEB liability Service cost Interest on the total OPEB liability Changes in benefit terms Differences between expected and actual experience in the measurement of the OPEB liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, 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) Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) $ $ $ $ 64,399 163,960 - $ 44,231 167,216 - 2019 (2018) $ 45,757 164,184 - 2018 (2017) $ 50,779 167,590 6,476 (271,397) - 35,618 - (351,117) 25,181 (103,677) - 19,591 (159,009) (88,596) (131,634) 2,225,928 2,094,294 (87,770) 168,515 2,057,413 2,225,928 (87,095) (201,584) 2,258,997 2,057,413 (86,192) 20,072 2,238,925 2,258,997 (111,290) (25,863) 2,264,788 2,238,925 52,644 581,519 $ $ (88,596) (2,391) 543,176 $ 66,728 153,939 - 2020 (2019) 2,147,242 2,690,418 56,957 26,801 $ $ (87,770) (2,179) (6,191) $ 2,153,433 2,147,242 $ 59,304 109,070 (87,095) (1,883) 79,396 2,027,116 46,921 2,153,433 $ $ $ 31,038 134,052 (86,192) (2,040) (1) 76,857 1,950,259 2,027,116 $ $ $ 66,083 208,162 (111,290) (1,842) 161,113 1,789,146 1,950,259 Net OPEB liability/(asset) - ending (a)-(b) (596,124) 78,686 (96,020) 231,881 288,666 Plan fiduciary net position as a percentage of the total OPEB liability 128.46% 96.47% 104.67% 89.74% 87.11% $ 16,653,104 $ 17,044,648 $ 16,897,694 $ 16,153,506 $ 15,387,963 -3.58% 0.46% -0.57% 1.44% 1.88% Covered payroll Net OPEB liability/(asset) as a percentage of covered payroll NOTE: The OPEB schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension/OPEB plan schedules 90 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2022 Public Safety Personnel Retirement System Peoria Fire Department Total OPEB liability Service cost Interest on the total OPEB liability Changes in benefit terms Differences between expected and actual experience in the measurement of the OPEB liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, 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) Reporting Fiscal Year (Measurement Date) 2022 (2021) 2021 (2020) $ $ $ $ $ 54,849 133,505 - 54,365 130,735 - 2020 (2019) $ 35,268 134,427 - 2019 (2018) $ 35,268 128,515 - 2018 (2017) $ 39,357 119,494 5,572 (184,074) - (63,904) - (193,678) 16,414 (49,429) - 175,598 (140,066) (57,545) (53,265) 1,802,764 1,749,499 (61,508) 59,688 1,743,076 1,802,764 (61,324) (68,893) 1,811,969 1,743,076 (42,867) 71,487 1,740,482 1,811,969 (66,108) 133,847 1,606,635 1,740,482 48,285 499,969 (57,545) (2,056) 488,653 1,837,638 2,326,291 $ $ $ 38,836 22,949 (61,508) (1,866) (1,589) 1,839,227 1,837,638 $ $ $ 37,857 94,227 (61,324) (1,627) 69,133 1,750,826 19,268 1,839,227 $ $ 19,805 115,059 $ $ (42,867) (1,751) 90,246 1,660,580 $ 1,750,826 31,072 176,536 (66,108) (1,563) 139,937 1,520,643 $ 1,660,580 Net OPEB liability/(asset) - ending (a)-(b) (576,792) (34,874) (96,151) 61,143 79,902 Plan fiduciary net position as a percentage of the total OPEB liability 132.97% 101.93% 105.52% 96.63% 95.41% $ 13,051,041 $ 13,658,235 $ 13,822,178 $ 12,085,624 $ 11,543,146 -4.42% -0.26% -0.70% 0.51% 0.69% Covered payroll Net OPEB liability/(asset) as a percentage of covered payroll NOTE: The OPEB schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension/OPEB plan schedules 91 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION/OPEB CONTRIBUTIONS JUNE 30, 2022 2022 Arizona State Retirement System - Pension Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll $ 7,387,367 $ $ 7,387,367 63,959,887 2021 2020 2019 $ 6,696,568 $ $ $ 6,696,568 57,978,944 6,575,540 $ $ 57,428,297 11.55% 11.45% 12.01% 6,575,540 $ 6,307,495 $ $ 6,307,495 56,417,665 Reporting Fiscal Year 2018 $ 5,923,393 $ $ 5,923,393 54,343,055 11.18% 10.90% Arizona State Retirement System - Health Insurance Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll $ 129,172 $ $ 129,172 63,959,887 $ 284,095 $ $ 284,095 57,978,944 281,400 $ $ 57,428,297 0.49% 0.49% 0.21% $ 281,400 $ 259,521 $ 239,109 $ $ 259,521 56,417,665 $ $ 239,109 54,343,055 0.46% 0.44% Arizona State Retirement System - Long-term disability Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll $ 116,867 $ 116,867 $ 63,959,887 0.19% $ 104,363 $ 97,627 $ 90,268 $ 86,949 104,363 57,978,944 97,627 $ $ 57,428,297 $ $ 90,268 56,417,665 $ $ 86,949 54,343,055 0.18% 0.17% 0.16% See accompanying notes to pension plan schedules 92 0.16% 2017 2016 $ 5,758,658 $ $ $ 5,758,658 53,419,833 5,513,977 5,513,977 $ $ 50,820,065 10.78% 10.85% 2015 2014 $ 5,458,945 $ $ $ 5,458,945 47,561,194 5,019,946 5,019,946 $ $ 46,266,286 11.48% 10.85% CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION/OPEB CONTRIBUTIONS JUNE 30, 2022 Public Safety Personnel Retirement System - Pension Peoria Police Department Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll Peoria Fire Department Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll 2022 $ 8,031,792 36,002,212 $ (27,970,420) $ 16,653,104 2021 2020 2019 $ 7,806,975 $ $ $ 8,278,054 (471,079) 16,653,104 7,646,229 $ $ 17,044,648 49.71% 44.86% 216.19% 7,646,229 $ 7,436,675 $ $ 7,436,675 16,897,694 Reporting Fiscal Year 2018 $ 8,917,938 $ $ 6,634,245 2,283,693 16,153,506 44.01% 2017 $ 5,039,558 $ $ $ 5,039,558 15,387,963 4,696,546 $ (290,167) $ 13,992,947 32.75% 33.56% 41.07% Peoria Fire Department Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll 4,406,379 2015 2014 $ 3,235,398 $ $ $ 3,235,398 13,449,859 2,907,800 2,907,800 $ $ 13,035,510 24.06% 22.31% $ 4,480,422 $ 4,776,681 $ 5,881,182 $ 4,714,745 $ 5,721,681 $ 2,711,485 $ 2,568,191 $ 1,842,016 $ $ $ 13,927,344 (9,446,922) 13,051,041 $ $ 7,563,149 (2,786,468) 13,051,041 5,881,182 $ $ 13,658,235 $ $ 4,714,745 13,822,178 $ $ 3,794,886 1,926,795 12,085,624 $ $ 2,976,968 (265,483) 11,543,146 2,747,609 $ (179,418) $ 11,796,929 $ $ 1,842,016 11,068,029 1,885,422 $ $ 10,934,868 57.95% 43.06% 25.79% 23.29% 16.64% 17.24% 106.71% 34.11% 31.40% Public Safety Personnel Retirement System - OPEB Peoria Police Department Statutorily required contribution Actual contributions in relation to the statutorily required contribution Contribution deficiency (excess) Covered payroll Actual contribution as a percentage of covered payroll 2016 $ 34,972 $ 55,479 $ $ 156,759 (121,787) 16,653,104 $ $ 0.94% 59,656 $ 65,900 $ 79,152 58,825 (3,346) 16,653,104 59,656 $ $ 17,044,648 $ $ 65,900 16,897,694 $ $ 79,152 16,153,506 0.35% 0.35% $ 22,187 $ 33,933 $ $ 68,967 (46,780) 13,051,041 $ $ 0.53% $ $ 0.39% 0.49% 51,931 $ 38,702 $ 35,048 53,727 (19,794) 13,051,041 51,931 $ $ 13,658,235 $ $ 38,702 13,822,178 $ $ 35,048 12,085,624 0.41% 0.38% 0.28% 0.29% NOTE: The pension/OPEB schedules in the required supplementary information are intended to show information for ten years and additional information will be displayed as it becomes available. See accompanying notes to pension plan schedules 93 1,885,422 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION/OPEB PLAN SCHEDULES JUNE 30, 2022 Note 1 – Actuarially Determined Contribution Rates Actuarial determined contribution rates for PSPRS are calculated as of June 30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods and assumptions are disclosed in the notes to the financial statements. Note 2- Factors that Affect Trends Arizona State Retirement System (ASRS) The actuarial assumptions used in the June 30, 2021, valuation for ASRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2017 actuarial valuation. Public Safety Personnel Retirement System (PSPRS) The actuarial assumptions used in the June 30, 2021, valuation for PSPRS were based on the results of an actuarial experience study for the 5-year period ended June 30, 2016. Several actuarial assumptions were adjusted based on the study. Adjustments included:  Decreasing wage inflation from 4.0% to 3.5%.  Decreasing the investment rate of return from 7.4 percent to 7.3 percent.  Updating mortality rates. Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS changed benefit terms to reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to explicitly value future permanent benefit increases. PSPRS also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date. These changes also increased the PSPRS-required pension contributions beginning in fiscal year 2016 for members who were retired as of the law’s effective date. These changes increased the PSPRS-required contributions beginning in fiscal year 2019 for members who retired or will retire after the law’s effective date. 94 Combining Statements & Budgetary Schedules Combining Fund Financial Statements and Budgetary Schedules This section contains the combining financial statements for non-major governmental funds, internal service funds and fiduciary funds as well as the budget schedules other than those for the general fund and major special revenue funds (which may be found immediately following the governmental fund financial statements). Page Major Governmental Funds Other than General Fund & Special Revenue Funds Budgetary Comparison Schedules General Obligation Bonds Debt Service Fund Development Fee Fund General Obligation Bonds Capital Projects Fund Non-Bond Capital Projects Fund 97 98 99 100 Non-Major Governmental Funds Combining Statements Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 104 Budgetary Comparison Schedules Public Transit Fund 106 Municipal Development Authority (MDA) Debt, Debt Service Fund 107 Community Facilities District (CFD) Bonds Debt Service Fund 108 Non-Bond Debt Service Fund 109 Community Facilities District (CFD) Bonds Capital Projects Fund 110 Internal Service Funds Combining Statements Combining Statement of Net Position 112 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 113 Combining Statement of Cash Flows 114 Fiduciary Funds Combining Statements Combining Statement of Net Position Combining Statement of Changes in Fiduciary Net Position 95 116 117 MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND & SPECIAL REVENUE FUNDS Budgetary Comparison Schedules Debt Service Funds Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest payments on debt. This includes financial resources that are being accumulated for principal and interest maturing in future years. Principal payments are due annually. Interest is due semiannually. General Obligation (GO) Bonds Debt Service Fund This fund accounts for the principal and interest requirements of the City's general obligation bonds. Provisions are made in the City's general property tax levy for funds sufficient to meet the general obligation debt service. Capital Projects Funds A capital project fund is established to account for the acquisition and construction of major capital facilities other than those financed by Special Revenue Fund and Enterprise Fund resources. A capital project fund enhances reporting to ensure that requirements regarding the use of the revenue were fully satisfied. Development Fee Fund This fund accounts for the receipt and expenditure of development impact or expansion fees for all governmental activities as governed by state statutes. Non-Bond Capital Projects Fund This fund accounts for the purchase or construction of capital assets with funds other than bond proceeds. This includes monies received from outside sources, i.e. developers or other governments, and also City pay-as-you-go monies. 96 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE GENERAL OBLIGATION BONDS DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Total revenues $ EXPENDITURES: Debt service: Principal payments Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Total other financing sources and uses $ Fund balances - beginning $ 20,725,976 75,000 20,800,976 $ 20,670,203 (389,812) 20,280,391 $ (55,773) (464,812) (520,585) 16,841,222 7,778,265 24,619,487 16,841,222 7,778,265 24,619,487 14,275,028 4,609,707 18,884,735 (2,566,194) (3,168,558) (5,734,752) (3,818,511) (3,818,511) 1,395,656 5,214,167 - - (3,000,000) (3,000,000) Net change in fund balances Fund balances - ending 20,725,976 75,000 20,800,976 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - (6,818,511) (3,818,511) 1,395,656 5,214,167 18,350,072 18,350,072 18,277,685 (72,387) 11,531,561 97 $ 14,531,561 $ 19,673,341 $ 5,141,780 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT DEVELOPMENT FEE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Charges for services Investment earnings(loss) Total revenues $ EXPENDITURES: Current: Culture and recreation Public safety Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Transfers out Total other financing sources and uses $ Fund balances - beginning $ 10,580,878 487,741 11,068,619 $ 9,174,188 (1,019,251) 8,154,937 $ (1,406,690) (1,506,992) (2,913,682) 9,951 15,933 3,347,227 11,458,261 14,831,372 9,951 92,725 7,011,834 9,801,183 16,915,693 420 79,583 7,060,711 2,244,450 9,385,164 (9,531) (13,142) 48,877 (7,556,733) (7,530,529) (3,762,753) (5,847,074) (1,230,227) 4,616,847 171,050 171,050 171,050 171,050 (1,000,000) (1,000,000) Net change in fund balances Fund balances - ending 10,580,878 487,741 11,068,619 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - (4,762,753) (5,847,074) (1,059,177) 4,787,897 $38,431,399 38,431,399 38,768,628 337,229 33,668,646 98 $ 32,584,325 $ 37,709,451 $ 5,125,126 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE NON-BOND CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Intergovernmental revenue Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: General government Culture and Recreation Public Safety Development services Highways and streets Public Works Debt service: Principal payments Interest and other charges Capital outlay Contingencies Total expenditures 1,830,000 95,000 5,308,918 7,233,918 $ 1,830,000 95,000 5,308,918 7,233,918 Actual Amounts (budgetary basis) Variance with Final Budget Over (Under) $ $ 9,487,521 75,618 516,267 10,079,406 7,657,521 (19,382) (4,792,651) 2,845,488 182,161 - 194,883 - 530,883 471,378 118,279 530,883 276,495 118,279 10,703,779 10,885,940 11,073,962 11,268,845 749,329 1,869,869 (10,324,633) (9,398,976) (3,652,022) (4,034,927) 8,209,537 12,244,464 (1,000,000) (1,000,000) (1,046,567) (1,046,567) (4,652,022) (5,081,494) 8,209,537 13,291,031 Fund balances - beginning 10,571,097 10,571,097 4,902,888 (5,668,209) Restatement Fund balances (deficit) - beginning restated 10,571,097 10,571,097 4,902,888 (5,668,209) Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Issuance of debt Premium on bonds issued Discount on bonds issued Payment to bond refunding escrow agent Contingencies Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - ending $ 5,919,075 99 $ 5,489,603 - $ 13,112,425 1,046,567 1,046,567 $ 7,622,822 100 NON-MAJOR GOVERNMENTAL FUNDS OTHER GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Public Transit Fund This fund receives and expends the City's allocation of Federal Transit Authority grant money as well as the City's allocation of the Local Transportation Assistance Fund money. The amount of Federal Transportation Authority funds available to each city is based on the total funding available and the total requests for funds. The amount of Local Transportation Assistance funds available to each city is allocated on a population basis, which is determined by the latest federal census. Expenditures are for the administration and operating costs of the public transit system. Smart & Safe AZ Fund This fund receives and expends the City's allocation of sales tax on recreational marijuana. These monies are deposited into the State’s Smart and Safe Arizona Fund (SSAF). The City receives a portion of this money from the state to be spent on police and fire departments. Debt Service Funds Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest payments on debt. This includes financial resources that are being accumulated for principal and interest maturing in future years. Principal payments are due annually. Interest is due semiannually. Municipal Development Authority (MDA) Bonds Debt Service Fund This fund accounts for the principal and interest requirements of the Municipal Development Authority's bonds. Provisions are made in the City's transaction privilege tax for funds sufficient to meet the Municipal Development Authority's debt service. Community Facilities District (CFD) Bonds Debt Service Fund This fund accounts for the principal and interest requirements of the Vistancia, Vistancia West, Vistancia North and Mystic at Lake Pleasant Heights Communities Facilities Districts (blended component units) general obligation bonds. Provisions are made in the District's general property tax levy for funds sufficient to meet the general obligation debt service. Non-Bond Debt Service Fund This fund accounts for all non-general obligation bond debt service payments of the City. Capital Projects Funds A capital project fund is established to account for the acquisition and construction of major capital facilities other than those financed by Special Revenue Fund and Enterprise Fund resources. A capital project fund enhances reporting to ensure that requirements regarding the use of the revenue were fully satisfied. Community Facilities District (CFD) Bonds Capital Projects Fund This fund accounts for the expenditure of Vistancia, Vistancia West, Vistancia North and Mystic at Lake Pleasant Heights Communities Facilities Districts bond proceeds for the construction of capital assets for the District. Once the capital assets are completed, they are turned over to the City for operation and maintenance. General Obligation (GO) Bond Capital Projects Fund This fund accounts for the receipt of proceeds from General Obligation bonds and the expenditure of those funds to purchase or construct capital assets for the City. 101 CITY OF PEORIA, ARIZONA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Special Revenue Funds ASSETS Pooled cash and investments Accounts receivable, net Interest receivable Due from other governments Restricted cash with fiscal agents Restricted investments Total assets LIABILITIES & FUND BALANCES FUND BALANCES Liabilities: Accounts payable Accrued payroll Due to other funds Other liabilities Total liabilities Deferred inflows of resources: Unavailable revenue-property taxes Total deferred inflows of resources Fund balances: Restricted for: Debt service Capital projects Public safety Grant purposes Total fund balance Total liabilities & fund balance Public Transit Fund $ $ $ 4,184,249 566,608 6,275 371,759 5,128,891 $ 7,742 17,613 537 25,892 $ $ 5,102,999 5,102,999 5,128,891 Municipal Development Authority Debt 1,115,267 1,115,267 - - $ Debt Service Funds Smart & Safe AZ Fund $ $ $ - $ 1,115,267 1,115,267 1,115,267 102 CFD Bonds 2,990,474 5,754 55,220 3,051,448 $ 43,452 43,452 $ $ - $ 3,007,996 3,007,996 3,051,448 374,435 1,211 78,642 4,334,889 4,789,177 $ 1,198 1,198 $ 5,476 5,476 $ Non-Bond 4,782,503 4,782,503 4,789,177 $ 403,469 2,770 406,239 - 406,239 406,239 $ 406,239 (continued) CITY OF PEORIA, ARIZONA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Capital Project Funds ASSETS Pooled cash and investments Accounts receivable, net Interest receivable Due from other governments Restricted cash with fiscal agents Restricted investments Total assets LIABILITIES & FUND BALANCES FUND BALANCES Liabilities: Accounts payable Accrued payroll Due to other funds Other liabilities Total liabilities Deferred inflows of resources: Unavailable revenue-property taxes Total deferred inflows of resources Fund balances: Restricted for: Debt service Capital projects Public safety Grant purposes Total fund balance Total liabilities & fund balance CFD Bonds $ $ $ GO Bonds 18 $ 6 347,258 347,282 $ - 72,559 72,559 $ 11,093 1,000,000 39,417,493 40,428,586 $ 2,136,140 241,576 2,377,716 $ - $ Total Non-Major Governmental Funds 274,723 274,723 347,282 $ - $ 38,050,870 38,050,870 40,428,586 103 9,067,912 566,608 27,109 1,450,401 4,390,109 39,764,751 55,266,890 2,188,532 17,613 241,576 73,096 2,520,817 5,476 5,476 $ 8,196,738 38,325,593 1,115,267 5,102,999 52,740,597 55,266,890 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Intergovernmental Charges for service Investment earnings(loss) Miscellaneous Total revenues EXPENDITURES: Current: General government Culture and recreation Public safety Highways and streets Public works Human services Debt service: Principal payments Interest and other charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Issuance of debt Premium on bonds issued Payment to bond refunding escrow agent Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ Special Revenue Funds Public Smart & Transit Safe AZ Fund Fund Debt Service Funds Municipal Development CFD Authority Debt Bonds Non-Bond 888,434 73,483 26,477 594,258 1,582,652 $ $ 938,568 938,568 2,463,169 - 2,463,169 - (880,517) 23,926 23,926 $ 11,687 127,515 139,202 56,188 - 29,255 - 2,200,000 1,156,511 3,356,511 4,080,000 978,038 5,114,226 3,794,051 568,822 4,392,128 938,568 (3,332,585) 197,216 (4,252,926) 1,708,618 (1,460) 1,707,158 - 21,495,000 2,773,230 (26,081,153) 3,172,226 1,359,303 - 4,404,530 4,404,530 826,641 938,568 (1,973,282) 197,216 151,604 4,276,358 $ 5,102,999 176,699 $ 1,115,267 4,981,278 $ 3,007,996 4,585,287 $ 4,782,503 104 - $ 4,894,127 5,109 412,206 5,311,442 $ 254,635 406,239 (continued) CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Capital Project Funds REVENUES: Taxes Intergovernmental Charges for service Investment earnings(loss) Miscellaneous Total revenues CFD Bonds $ - EXPENDITURES: Current: General government Culture and recreation Public safety Highways and streets Public works Human services Debt service: Principal payments Interest and other charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Issuance of debt Premium on bonds issued Payment to bond refunding escrow agent Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending - $ GO Bonds $ 27 27 1,000,000 (421,263) 301,403 880,140 Total Non-Major Governmental Funds $ 4,894,127 2,827,002 73,483 (354,037) 1,435,382 8,875,957 - 1,578,194 2,137,422 29,059 44,533 1,052,891 - 1,634,382 2,137,422 29,059 44,533 1,082,146 2,463,169 72,559 72,559 248,661 10,962,772 16,053,532 10,074,051 3,024,591 10,962,772 31,452,125 (72,532) (15,173,392) (22,576,168) - 55,880,000 5,313,345 61,193,345 21,495,000 55,880,000 8,086,575 (26,081,153) 9,285,374 (1,460) 68,664,336 (72,532) 46,019,953 46,088,168 347,255 274,723 (7,969,083) $ 38,050,870 105 $ 6,652,429 52,740,597 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE PUBLIC TRANSIT FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Intergovernmental Charges for services Investment earnings Miscellaneous Total inflows $ EXPENDITURES: Current: Human services Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 425,000 45,000 40,000 225,000 735,000 $ 425,000 45,000 40,000 225,000 735,000 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 888,434 73,483 26,477 594,258 1,582,652 $ 463,434 28,483 (13,523) 369,258 847,652 5,111,458 5,111,458 5,209,816 5,209,816 2,463,169 2,463,169 (2,746,647) (2,746,647) (4,376,458) (4,474,816) (880,517) 3,594,299 1,685,260 (1,460) 1,683,800 1,685,260 (1,460) 1,683,800 1,708,618 (1,460) 1,707,158 23,358 23,358 (2,692,658) (2,791,016) 826,641 3,617,657 2,935,095 2,935,095 4,276,358 1,341,263 242,437 106 $ 144,079 $ 5,102,999 $ 4,958,920 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE MUNICIPAL DEVELOPMENT AUTHORITY (MDA) DEBT, DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Investment earnings Total revenues $ EXPENDITURES: Debt service: Principal payments Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Refunding bonds issued Premium on bonds issued Payment to bond refunding escrow agent Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 65,000 65,000 $ 65,000 65,000 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 23,926 23,926 $ (41,074) (41,074) 2,200,000 972,226 3,172,226 2,200,000 972,226 3,172,226 2,200,000 1,156,511 3,356,511 184,285 184,285 (3,107,226) (3,107,226) (3,332,585) (225,359) 3,172,226 3,172,226 3,172,226 3,172,226 21,495,000 2,773,230 (26,081,153) 3,172,226 1,359,303 21,495,000 2,773,230 (26,081,153) (1,812,923) 65,000 65,000 (1,973,282) (2,038,282) 5,105,788 5,105,788 4,981,278 (124,510) 5,170,788 107 $ 5,170,788 $ 3,007,996 $ (2,162,792) CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT (CFD) BONDS DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Taxes Charges For Service Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: General government Debt service: Principal payments Interest and other charges Total expenditures 4,907,263 Net change in fund balances Fund balances - beginning Fund balances - ending $ 4,907,263 $ 4,894,127 $ (13,136) 1,444,737 6,352,000 1,444,737 6,352,000 5,109 412,206 5,311,442 5,109 (1,032,531) (1,040,558) 1,220,000 1,207,440 56,188 (1,151,252) 4,157,000 975,000 6,352,000 4,157,000 975,000 6,339,440 4,080,000 978,038 5,114,226 (77,000) 3,038 (1,225,214) - 12,560 197,216 184,656 - (10,000) (10,000) - 10,000 10,000 - 2,560 197,216 194,656 - - 4,585,287 4,585,287 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Total other financing sources and uses $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - 108 $ 2,560 $ 4,782,503 $ 4,779,943 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE NON-BOND DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: General government Public works Debt service: Principal payments Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ - $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - $ 11,687 127,515 139,202 $ 11,687 127,515 139,202 45,000 93,700 29,255 (93,700) 29,255 3,794,051 569,322 4,408,373 3,794,051 569,322 4,457,073 3,794,051 568,822 4,392,128 (500) (64,945) (4,408,373) (4,457,073) (4,252,926) 204,147 4,404,530 4,404,530 4,404,530 4,404,530 4,404,530 4,404,530 - (3,843) (52,543) 151,604 204,147 - - 254,635 254,635 (3,843) 109 $ (52,543) $ 406,239 $ 458,782 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT (CFD) BONDS CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Investment earnings Total revenues $ EXPENDITURES: Debt service: Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Issuance of debt Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ - $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - $ 27 27 $ 27 27 70,000 70,000 72,560 72,560 72,559 72,559 (1) (1) (70,000) (72,560) (72,532) 28 70,000 70,000 70,000 70,000 - (70,000) (70,000) - (2,560) (72,532) (69,972) - - 347,255 347,255 - 110 $ (2,560) $ 274,723 $ 277,283 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE GENERAL OBLIGATION (GO) BOND CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts Original Final REVENUES: Intergovernmental revenue Investment earnings(loss) Miscellaneous Total revenues $ EXPENDITURES: Current: General government Culture and recreation Public safety Highways and streets Public works Debt service: Principal payments Interest and other charges Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Issuance of debt Contingencies Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 57,711 57,711 $ 57,711 57,711 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 1,000,000 (421,263) 301,403 880,140 $ 1,000,000 (478,974) 301,403 822,429 899,023 - 604,102 - 1,578,194 2,137,422 29,059 44,533 1,052,891 1,578,194 2,137,422 29,059 (559,569) 1,052,891 55,540,575 56,439,598 40,452,368 41,056,470 248,661 10,962,772 16,053,532 248,661 (29,489,596) (25,002,938) (56,381,887) (40,998,759) (15,173,392) 25,825,367 64,505,092 64,505,092 64,505,092 64,505,092 55,880,000 5,313,345 61,193,345 (8,625,092) 5,313,345 (3,311,747) 8,123,205 23,506,333 46,019,953 22,513,620 (8,123,205) (8,123,205) (7,969,083) 154,122 - 111 $ 15,383,128 $ 38,050,870 $ 22,667,742 INTERNAL SERVICE FUNDS Motor Pool Fund The Motor Pool Fund is responsible for the maintenance and operation of the City’s fleet of vehicles and various other equipment. Self-Insurance Fund The Self-Insurance Fund is responsible for the administration of the self-insurance programs, including liability and property damage, workers’ compensation insurance, and employee health insurance. This fund provides the excess insurance coverage for claims over the self-insurance limits; claims under the limits are charged directly to the SelfInsurance Fund. Facilities Maintenance Fund The Facilities Maintenance Fund is responsible for the maintenance and operations of the City's buildings and grounds. Information Technology Fund The Information Technology Fund is responsible for the maintenance and operations of the City's computer hardware and software systems. CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2022 ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Interest receivable Supplies inventory Total current assets Non-current assets: Restricted assets: Investments Total restricted assets Capital assets: Buildings and improvements Equipment & furniture Vehicles Less accumulated depreciation Construction in progress Total capital assets, net Net other postemployment benefits asset Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Accrued payroll Current portion of claims payable Current portion of compensated absences Total current liabilities Non-current liabilities: Long-term portion of claims payable Compensated absences Net pension and other postemployment benefits liability Total non-current liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted - trust purpose Restricted - net other postemployment benefits Unrestricted Total net position Motor Pool Fund SelfInsurance Fund Facilities Maintenance Fund Information Technology Fund Total $ 13,768,887 15,625 17,914 322,370 14,124,796 $ 7,695,140 19,595,479 275,000 22,084 62,220 27,649,923 $ 1,638,098 1,905 1,640,003 $ 7,471,788 7,997 8,746 7,488,531 $ 30,573,913 19,595,479 275,000 45,706 90,785 322,370 50,903,253 - 8,600,470 8,600,470 1,048,125 37,422,679 (24,444,551) 213,919 14,240,172 32,652 28,397,620 226,244 226,244 36,250,393 - - - 8,600,470 8,600,470 82,355 1,722,358 148,102 38,661,923 (38,162,979) 647,046 157,266 8,292,843 148,102 39,710,048 37,422,679 (62,607,530) 213,919 14,887,218 272,273 74,663,214 570,622 570,622 1,089,664 1,089,664 1,886,530 1,886,530 145,990 32,386 58,140 236,516 2,752,251 3,479 5,501,797 21,230 8,278,757 60,724 61,774 179,240 301,738 190,806 112,132 333,240 636,178 3,149,771 209,771 5,501,797 591,850 9,453,189 68,570 1,449,003 29,020 266,850 287,570 1,449,003 652,010 866,275 934,845 1,171,361 1,478,023 9,756,780 2,184,901 2,451,751 2,753,489 4,172,301 4,459,871 5,096,049 7,223,477 9,324,490 18,777,679 809,688 809,688 1,546,190 1,546,190 2,676,906 2,676,906 82,355 (1,352,552) $ (1,270,197) 647,046 157,266 1,935,956 $ 2,740,268 14,864,251 19,147,495 272,273 20,811,140 $ 55,095,159 321,028 321,028 14,217,205 32,652 12,881,618 $ 27,131,475 113 19,147,495 7,346,118 $ 26,493,613 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2022 Facilities Maintenance Fund Information Technology Fund Total $ 6,797,530 6,797,530 $ 11,711,678 16,137 11,727,815 $ 54,171,586 530,726 54,702,312 450,751 1,347,798 21,886,531 23,685,080 2,481,726 2,880,231 3,558,729 6,438,960 358,570 5,216,735 6,567,146 931,916 12,715,797 (987,982) 9,675,997 17,215,535 21,886,531 4,024,086 52,802,149 1,900,163 75,586 49,317 124,903 (144,675) (144,675) 8,034 8,034 36,900 36,900 (24,155) 49,317 25,162 172,752 2,337,051 366,604 (951,082) 1,925,325 Capital contributions Transfers in Transfers out Change in net position 1,009,195 (28,668) 1,153,279 4,835 (37,561) 2,304,325 82,184 448,788 2,270,686 1,319,604 3,366,900 (66,229) 5,225,996 Total net position - beginning Total net position - ending 25,978,196 $ 27,131,475 24,189,288 $ 26,493,613 1,420,664 2,740,268 49,869,163 $ 55,095,159 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Salaries, wages and employee benefits Contractual services, materials and supplies Insurance claims and expenses Depreciation and amortization Total operating expenses Operating income (loss) NON-OPERATING REVENUES (EXPENSES) Investment income(loss) Gain (Loss) on sale of capital assets Total non-operating revenues Income (loss) before capital contributions and transfers $ Motor Pool Fund SelfInsurance Fund 9,965,958 44,203 10,010,161 $ 25,696,420 470,386 26,166,806 1,128,280 5,741,862 3,092,170 9,962,312 47,849 114 $ (1,718,985) (1,270,197) $ CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2022 SelfInsurance Fund Motor Pool Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Self-insurance costs Net cash provided (used) by operating activities $ Facilities Maintenance Fund Information Technology Fund Total $ 6,797,530 (3,574,039) (2,894,269) 329,222 $ 11,720,015 (6,883,813) (5,268,264) (432,062) $ 54,676,309 (16,682,952) (9,715,575) (23,153,544) 5,124,238 2,270,686 2,270,686 3,366,900 (66,229) 3,300,671 9,994,536 (5,852,174) (1,108,318) 3,034,044 $ 26,164,228 (372,926) (444,724) (23,153,544) 2,193,034 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in Transfers out Net cash provided (used) by non-capital financing activities 1,009,195 (28,668) 980,527 4,835 (37,561) (32,726) 82,184 82,184 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from disposal of capital assets Net cash flows used by capital and related financing activities (3,262,059) 81,879 (3,180,180) - - (28,667) (28,667) (3,290,726) 81,879 (3,208,847) 77,569 77,569 268,901 (129,323) 139,578 7,578 7,578 37,389 37,389 268,901 (6,787) 262,114 911,960 12,856,927 $ 13,768,887 2,299,886 25,265,733 $ 27,565,619 $ 418,984 1,219,114 1,638,098 $ 1,847,346 5,624,442 7,471,788 5,478,176 44,966,216 $ 50,444,392 $ $ $ 358,570 $ (987,982) $ 1,900,163 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Interest received on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization (Increase) decrease in assets/deferred outflows: Accounts receivable Prepaid items Supplies inventory Net other postemployment benefits asset Deferred outflows - pension and other postemployment benefits Increase (decrease) in liabilities/deferred inflows: Accounts payable Accrued payroll Claims payable Compensated absences Net pension and other post employment benefit liability Deferred inflows - pension and other postemployment benefits Total adjustments Net cash provided (used) by operating activities $ Non-cash investing, capital and financing activities: Change in fair market value of investments Total non-cash investing, capital and financing activities $ 47,849 2,481,726 3,092,170 - - 931,916 4,024,086 (15,625) (103,278) (27,897) (7,103) (2,578) 65,200 - (70,202) (10,593) (7,800) (134,816) (55,129) (26,003) 65,200 (103,278) (232,915) (72,825) (7,034) 18,060 28,000 (282,748) 291,650 2,986,195 909,672 (143) (1,267,013) 6,170 (288,692) (15,310) 20,071 63,590 (751,516) 734,612 (29,348) (316,667) 29,708 (46,680) (1,252,110) 1,407,498 555,920 570,661 67,696 (1,267,013) 51,080 (2,286,374) 2,433,760 3,224,075 $ 5,124,238 3,034,044 - 115 $ 2,193,034 $ 329,222 $ (432,062) $ (339,971) (339,971) $ - $ - $ (339,971) (339,971) FIDUCIARY FUNDS Play Peoria NFP Fund This fund accounts for monies held on behalf of separate not-for-profit agencies for which the City operates as an administrator. Westside Fire Training IGA Fund This fund accounts for monies held on behalf of a consortium of area fire departments that pool monies for training activities for which the City acts as the administrator. 116 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2022 ASSETS Pooled cash and investments Due from other governments Interest receivable Total assets Custodial Funds Westside PLAY Fire Peoria Training NFP Fund IGA Fund $ LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for: Individuals and organizations Other governments Total net position $ 133,745 115 133,860 $ 41,117 9,500 43 50,660 1,153 1,153 - 132,707 132,707 50,660 50,660 117 $ Total Custodial Funds $ 174,862 9,500 158 184,520 1,153 1,153 132,707 50,660 $ 183,367 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2022 ADDITIONS Contributions: Individuals Intergovernmental Investment earnings: Interest Total additions Custodial Funds Westside PLAY Fire Peoria Training NFP Fund IGA Fund $ 73,408 DEDUCTIONS Recipient payments Total deductions Change in net position Net position - beginning of the year Net position - end of the year $ 118 $ 25,200 Total Custodial Funds $ 73,408 25,200 484 73,892 182 25,382 666 99,274 45,274 45,274 2,884 2,884 48,158 48,158 28,618 22,498 51,116 104,089 132,707 28,162 $ 50,660 132,251 $ 183,367 Statistical Section Statistical Section The Statistical Section presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplemental information says about the government’s overall financial health. Statistical information is different from financial statements in that the statistics usually cover more than one fiscal year and may present non-accounting information. The following tables present financial trends, information about the fiscal capacity of the government, and social and economic information, as necessary for complete disclosure and understanding of the City’s financial activity. The information presented in these tables is not required for fair presentation in conformity with accounting principles generally accepted in the United States of America and is therefore not covered by the auditor’s opinion. Contents Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue sources - sales and use taxes, property taxes and utility user fees. Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Economic and Demographic Information These schedules offer economic and demographic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 119 Statistical Section Table Page Financial Trends I Net Position By Component II Changes in Net Position III Fund Balances, Governmental Funds IV Changes in Fund Balances, Governmental Funds 121 122 124 125 Revenue Capacity V City Transaction Privilege Taxes By Category VI Direct and Overlapping Sales Tax Rates VII Sales Tax Payers - By Category VIII Assessed Values By Property Classification IX Comparative Assessed Values X Direct and Overlapping Property Tax Rates XI Direct and Overlapping Property Tax Levies XII Limited Property Value Top Ten Tax Payers XIII Property Tax Levies and Collections XIV Utility Statistical Data 126 127 128 129 130 131 132 133 134 135 Debt Capacity XV Outstanding Debt By Type XVI Ratio of Net General Bonded Debt to Full Cash Value and Net Bonded Debt Per Capita XVII Direct and Overlapping General Obligation Bonded Debt – Current Fiscal Year XVIII Direct and Overlapping Governmental Activities Debt – Current Fiscal Year XIX Direct and Overlapping Governmental Activities Debt – Last Ten Fiscal Years XX Legal Debt Margin XXI Pledged Revenue Coverage – Excise Tax and State Shared Revenue Debt Obligations - Governmental Portion XXII Pledged Revenue Coverage – Water and Wastewater Revenue Bonds XXIII Pledged Revenue Coverage – Special Assessment Bonds XXIV Special Assessment Collections 138 139 140 141 142 143 144 145 146 147 Economic and Demographic Information XXV Demographic and Economic Statistics XXVI Major Employers Within the City 148 149 Operating Information XXVII Authorized Full-time Equivalent City Government Employees By Function XXVIII Operating Indicators By Function/Program XXIX Capital Asset Statistics By Function/Program 150 151 152 120 CITY OF PEORIA, ARIZONA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) Governmental Activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business-type Activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position Primary Government Net investment in capital assets Restricted Unrestricted Total primary government net position 2013 $ $ $ $ $ $ 829,001,871 131,550,563 149,159,571 1,109,712,005 Fiscal Year 2015 (1) 2014 $ $ 493,788,885 21,575,445 71,130,874 586,495,204 $ 1,322,790,756 153,126,008 220,290,445 1,696,207,209 $ $ $ 855,286,264 151,624,692 84,211,745 1,091,122,701 $ $ 533,623,141 23,153,024 68,382,971 625,159,136 $ 1,388,909,405 174,777,716 152,594,716 1,716,281,837 $ $ $ 885,716,419 139,143,949 (29,002,988) 995,857,380 2016 $ $ 568,223,130 23,830,354 54,351,770 646,405,254 $ 1,453,939,549 162,974,303 25,348,782 1,642,262,634 $ $ $ 899,648,174 162,959,546 (32,938,378) 1,029,669,342 2018 (2) 2017 $ $ 589,629,061 31,926,587 49,023,256 670,578,904 $ 1,489,277,235 194,886,133 16,084,878 1,700,248,246 $ $ $ 747,243,866 149,717,064 (41,146,402) 855,814,528 597,736,728 27,590,003 59,376,481 684,703,212 1,344,980,594 177,307,067 18,230,079 1,540,517,740 $ $ $ $ $ $ (1) Decrease in unrestricted net position is due to the implementation of GASB Statement No. 68. (2) Beginning net position was restated due to implementation of GASB Statement No. 75 and adjustments to capital assets and restricted cash with fiscal agents. Source: Statement of Net Position City financial records and reports 121 Table I 2019 635,872,778 121,796,554 (7,041,008) 750,628,324 $ 600,474,983 29,456,418 67,576,862 697,508,263 $ 1,236,347,761 151,252,972 60,535,854 1,448,136,587 $ $ $ $ 2020 671,171,180 121,505,682 (2,470,597) 790,206,265 $ 619,320,612 25,123,557 70,087,860 714,532,029 $ 1,290,491,792 146,629,239 67,617,263 1,504,738,294 $ $ $ $ 687,881,892 112,074,204 25,270,359 825,226,455 2021 $ $ 622,466,137 13,719,271 87,023,600 723,209,008 $ 1,310,348,029 125,793,475 112,293,959 1,548,435,463 $ $ $ 727,837,350 122,549,508 33,644,712 884,031,570 640,684,899 32,937,325 83,010,832 756,633,056 1,368,522,249 155,486,833 116,655,544 1,640,664,626 2022 $ $ $ $ 732,178,933 132,975,636 81,171,085 946,325,654 640,404,948 48,913,594 74,087,539 763,406,081 $ 1,372,583,881 181,889,230 155,258,624 $ 1,709,731,735 Table II CITY OF PEORIA, ARIZONA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses Governmental Activities General Government Culture & Recreation Public Safety* Development Services Highways & Streets Public Works Human Services Interest on long-term debt Unallocated Depreciation Total governmental activities expenses Business-type Activities Water Utility Wastewater Utility Solid Waste Utility Stadium Storm Drain Utility Housing Total business-type activities expenses Total primary government expenses Program Revenues Governmental Activities Charges for services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type Activities Charges for 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 $ $ $ $ $ $ 19,175,790 22,434,968 56,757,540 8,374,619 29,967,207 6,989,988 2,196,801 12,739,029 574,557 159,210,499 29,094,123 20,342,376 10,503,928 5,140,500 806,658 273,528 66,161,113 225,371,612 18,745,123 12,440,760 21,485,029 52,670,912 67,197,303 67,915 7,323,482 74,588,700 127,259,612 (106,539,587) 8,427,587 (98,112,000) Fiscal Year 2015 2014 2013 $ $ $ $ $ $ 20,038,112 25,559,518 60,213,181 9,193,743 31,411,752 7,015,316 1,629,118 12,009,243 574,550 167,644,533 30,836,235 21,083,666 10,806,101 5,176,689 823,780 68,726,471 236,371,004 19,221,921 12,693,535 11,703,447 43,618,903 69,499,963 9,325,636 78,825,599 122,444,502 (124,025,630) 10,099,128 (113,926,502) $ $ $ $ $ $ 21,210,452 25,982,440 64,261,923 9,544,919 33,658,672 7,259,675 1,177,275 11,373,755 174,469,111 34,566,373 21,737,995 10,939,896 6,372,954 813,636 74,430,854 248,899,965 25,696,523 13,485,788 22,908,863 62,091,174 68,417,721 29,760,720 98,178,441 160,269,615 (112,377,937) 23,747,587 (88,630,350) 2016 $ $ $ $ $ $ 2017 22,250,673 26,447,013 70,342,389 7,123,106 34,620,944 7,507,311 1,788,130 11,549,457 181,629,023 33,221,797 22,001,744 11,137,739 6,742,573 1,052,977 74,156,830 255,785,853 29,321,181 14,329,168 27,259,727 70,910,076 76,106,994 17,518,669 93,625,663 164,535,739 (110,718,947) 19,468,833 (91,250,114) * Beginning in fiscal year 2015, the Police and Fire line items have been combined and are being presented in the Public Safety line item. 122 $ $ $ $ $ $ 21,623,532 28,371,539 97,665,783 6,630,945 44,979,242 6,705,095 1,283,420 8,451,596 215,711,152 39,316,668 24,075,245 11,867,773 7,579,975 3,497,956 86,337,617 302,048,769 32,311,277 14,666,090 25,638,030 72,615,397 80,152,247 20,698,020 100,850,267 173,465,664 (143,095,755) 14,512,650 (128,583,105) 2018 $ $ $ $ $ $ 20,343,398 28,003,374 81,720,528 5,731,857 54,647,432 5,694,902 2,527,213 8,011,112 206,679,816 40,780,450 25,715,392 13,008,905 7,736,745 3,301,070 90,542,562 297,222,378 34,954,574 16,640,349 20,441,205 72,036,128 85,557,374 12,517,749 98,075,123 170,111,251 (134,643,688) 7,532,561 (127,111,127) 2019 $ $ $ $ $ $ 21,473,593 29,499,798 89,026,946 4,757,015 55,594,789 5,112,076 4,072,235 7,768,341 217,304,793 41,968,847 24,512,758 13,749,718 7,850,061 3,469,645 91,551,029 308,855,822 37,925,774 15,394,092 31,886,362 85,206,228 84,331,736 14,999,480 99,331,216 184,537,444 (132,098,565) 7,780,187 (124,318,378) 2020 $ $ $ $ $ $ 25,559,396 31,614,048 90,943,804 4,825,318 60,214,083 6,731,383 4,691,770 7,903,847 232,483,649 44,813,959 30,007,409 14,059,601 6,868,271 3,747,753 99,496,993 331,980,642 34,130,112 30,380,591 17,490,699 82,001,402 87,888,011 15,053,394 102,941,405 184,942,807 (150,482,247) 3,444,412 (147,037,835) 2021 $ $ $ $ $ $ 26,262,983 31,387,780 101,363,787 6,369,766 53,298,576 7,188,048 2,154,216 5,196,192 233,221,348 47,882,705 29,013,309 15,039,332 6,865,555 3,918,628 102,719,529 335,940,877 33,877,259 26,737,353 33,507,214 94,121,826 97,952,658 29,697,095 127,649,753 221,771,579 (139,099,522) 24,930,224 (114,169,298) 2022 $ $ $ $ $ $ 29,320,764 38,959,427 95,609,943 7,241,732 59,756,231 7,498,034 3,480,639 6,341,184 248,207,954 57,101,424 32,608,310 16,406,294 7,279,287 4,947,393 118,342,708 366,550,662 36,304,943 26,225,414 36,466,449 98,996,806 100,817,330 19,914,624 120,731,954 219,728,760 (149,211,148) 2,389,246 (146,821,902) Table II CITY OF PEORIA, ARIZONA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Sales and use taxes Franchise taxes Intergovernmental State shared sales taxes - unrestricted Urban revenue sharing - unrestricted Auto in-lieu taxes - unrestricted Investment Earnings(Losses) Gain on sale of capital assets Elimination of development agreement debt Miscellaneous Special Item: Defeasance of G.O. debt Transfers in (out) Total governmental activities Business-type Activities Investment Earnings(Losses) Gain on sale of capital assets Special Item: Close out of Public Housing Transfers in (out) Total business-type activities Total primary government Change in Net Position Governmental Activities Business-type Activities Total primary government Source: $ $ $ $ 2,848,691 16,628,634 65,950,235 4,136,004 Fiscal Year 2015 2014 2013 $ 2,744,900 15,479,771 70,213,953 4,194,371 $ 2,889,150 16,891,026 74,556,024 4,312,836 2016 $ 2017 2,994,905 17,537,813 79,410,364 4,461,864 $ 3,207,433 18,532,683 84,236,770 4,501,681 12,665,191 14,425,958 5,155,206 599,263 66,465 630,104 4,397,616 13,431,637 17,172,500 5,495,225 878,164 111,342 3,920,109 14,139,128 18,650,521 5,886,971 843,648 3,216,595 14,760,029 18,549,406 6,385,294 1,693,475 2,732,726 15,631,512 20,949,613 6,728,814 1,667,892 4,120,882 (9,394,454) 118,108,913 (28,205,646) 105,436,326 (11,931,172) 129,454,727 (3,994,967) 144,530,909 176,176 (2,101,809) 9,394,454 7,468,821 125,577,734 359,158 28,205,646 28,564,804 134,001,130 348,717 11,931,172 12,279,889 141,734,616 709,850 3,994,967 4,704,817 149,235,726 11,569,326 15,896,408 27,465,734 $ $ $ (18,589,304) 38,663,932 20,074,628 $ $ $ 17,076,790 36,027,476 53,104,266 $ $ $ 33,811,962 24,173,650 57,985,612 Statement of Activities City financial records and reports 123 $ $ $ 2018 $ 3,522,321 20,152,280 89,781,248 5,035,331 2019 $ 5,099,325 20,276,526 93,182,810 4,925,609 2020 $ 5,928,720 21,829,330 99,747,911 4,776,257 2021 $ 6,086,505 23,814,936 113,852,555 4,965,951 2022 $ (6,346,374) 153,230,906 15,894,140 20,334,388 6,799,997 2,172,236 5,383,459 (450,797) (4,803,295) 163,821,308 17,018,021 20,366,697 7,262,809 7,200,254 2,342,583 (5,997,632) 171,677,002 17,079,368 22,275,583 7,313,007 7,800,410 1,138,662 (2,387,307) 185,501,941 (8,264,790) 197,904,637 26,815,644 24,816,247 8,237,369 (6,556,874) 3,658,727 (3,373,622) 215,477,280 519,774 109,744 6,346,374 6,975,892 160,206,798 700,909 13,305 4,803,295 5,517,509 169,338,817 3,107,572 138,375 5,997,632 9,243,579 180,920,581 2,854,480 (9,220) 2,387,307 5,232,567 190,734,508 211,199 17,835 8,264,790 8,493,824 $206,398,461 (2,985,986) 24,095 3,373,622 411,731 215,889,011 35,019,694 8,676,979 43,696,673 $58,805,115 33,424,048 $92,229,163 10,135,151 21,488,542 31,623,693 $ $ $ 29,177,620 13,050,070 42,227,690 $ $ $ 39,578,437 17,023,766 56,602,203 $ $ $ 20,186,716 25,147,285 8,349,703 544,254 3,221,522 6,351,779 25,044,456 125,521,932 4,961,622 $ $ $ 66,266,132 2,800,977 69,067,109 CITY OF PEORIA, ARIZONA FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Table III Fiscal Year General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total All Other Governmental Funds 2013 $ $ $ 2014 259,643 108,517 33,229,466 3,330,705 13,996,657 50,924,988 $ 98,819 188,434,944 10,004,379 25,988,041 - $ $ 224,526,183 $ 2015 262,852 54,193 37,028,922 3,340,512 17,308,306 57,994,785 $ 131,641 145,352,432 10,300,556 23,410,508 - $ $ 179,195,137 $ 2016 163,703 67,084 36,911,493 3,056,458 21,584,005 61,782,743 $ 70,579 127,294,490 10,572,297 22,821,310 (6,638,667) $ $ 154,120,009 $ 2017 115,042 388,375 38,464,678 2,859,523 20,816,526 62,644,144 $ 67,986 150,498,066 10,885,668 30,353,689 - $ $ 191,805,409 113,859 354,566 40,221,571 2,618,447 25,684,922 68,993,365 $ 69,711 137,842,918 11,315,062 27,978,550 - $ 177,206,241 Source: Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds Balance Sheet - Governmental Funds City financial records and reports 124 2018 $ 2019 123,939 40,488 42,249,268 1,760,838 33,849,097 78,023,630 $ 78,068 115,222,701 10,663,895 34,926,243 - $ 160,890,907 $ $ 2020 2,323,312 30,639 55,086,725 1,528,073 80,266,172 $ 139,234,921 277,778 25,943 56,852,819 1,768,200 111,244,006 $ 170,168,746 $ $ 60,828 143,532,067 2,838,609 16,217,244 - $ $ $ $ 162,648,748 $ 120,298,976 69,986 108,519,124 2,429,777 9,280,089 - $ 2022 939,966 40,762 52,300,995 1,363,728 58,221,670 112,867,121 $ $ 2021 144,357 107,990,268 2,424,547 4,902,888 (7,969,083) $ 107,492,977 190,312 1,924 59,902,768 3,748,153 99,008,274 $ 162,851,431 379,976 304,865,760 63,770,700 29,973,003 99,008,274 $ 497,997,713 Table IV CITY OF PEORIA, ARIZONA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Revenues Taxes Intergovernmental Charges for Services Licenses and Permits Fines and Forfeitures Rents Investment Earnings(Losses) Special Assessments Miscellaneous $ Total Revenues Expenditures General Government Culture & Recreation Public Safety (1) Development Services Highways & Streets Public Works Human Services Capital Outlay Debt Service Interest Principal Payment to bond escrow agent Fiscal Year 2015 2014 2013 89,948,724 49,831,144 21,405,623 2,564,075 2,257,477 1,101,082 537,732 1,217,271 5,880,511 $ 93,731,980 50,132,922 17,684,357 2,800,894 2,128,289 731,901 757,747 1,137,018 5,060,343 $ 2016 98,629,880 55,289,472 19,355,378 3,132,178 1,856,640 889,053 725,208 381,761 3,536,024 $ 2017 104,369,837 65,237,794 21,812,733 4,080,210 1,747,528 915,846 1,462,408 381,950 3,278,730 $ 2018 110,535,434 60,096,580 24,367,635 4,778,632 1,571,788 908,678 1,320,578 2,171,319 4,411,440 $ 118,352,843 61,643,624 26,637,159 5,509,240 1,815,644 1,002,948 1,709,765 5,307,423 2019 $ 2020 123,645,058 61,054,399 28,089,117 5,720,889 2,390,644 980,732 6,364,506 3,049,527 $ 2021 131,784,413 85,338,544 27,299,388 4,929,081 1,382,853 721,181 6,881,841 1,258,583 $ 2022 148,454,717 83,673,505 26,414,975 5,287,497 1,535,140 843,911 85,750 3,537,355 $ 162,396,713 96,914,612 28,254,679 5,100,898 1,731,336 1,080,477 (6,532,719) 3,732,659 174,743,639 174,165,451 183,795,594 203,287,036 210,162,084 221,978,646 231,294,872 259,595,884 269,832,850 292,678,655 15,094,866 19,668,598 56,702,266 8,568,013 16,355,505 4,914,720 2,213,374 39,612,698 15,866,612 21,762,725 58,976,873 9,311,964 17,098,590 5,110,924 1,604,288 17,728,188 17,085,501 22,181,064 60,840,413 9,714,954 19,400,893 5,261,842 1,147,341 26,491,974 19,424,865 21,797,069 68,151,428 7,129,814 19,086,404 5,325,264 1,725,328 12,332,241 18,216,483 23,862,880 73,087,082 6,291,295 21,610,293 6,384,151 1,184,926 29,367,979 17,493,779 24,200,927 79,514,160 5,935,127 25,666,063 5,415,791 2,447,943 25,896,002 18,381,872 26,631,491 84,514,269 4,835,544 27,314,691 5,535,727 4,020,781 27,839,028 19,129,269 29,367,980 90,140,255 4,867,486 32,490,156 6,927,246 4,690,171 55,429,562 22,437,588 27,500,891 94,011,139 6,221,071 24,989,110 6,731,414 2,143,606 33,233,819 26,640,810 34,019,114 135,035,214 6,967,231 30,518,643 7,234,142 3,476,262 17,099,261 12,534,039 12,543,974 11,933,264 10,606,558 11,336,938 9,705,255 8,776,334 8,623,160 8,170,203 7,635,199 20,120,163 21,937,761 17,305,000 18,010,000 19,867,000 19,483,000 22,022,461 22,726,060 21,569,912 24,368,166 - - - 6,707,216 - 13,604,681 - - - - Total Expenditures 195,784,242 181,941,899 191,362,246 190,296,187 211,209,027 229,362,728 229,872,198 274,391,345 247,008,753 292,994,042 Excess of Revenues over (under) Expenditures (21,040,603) (7,776,448) (7,566,652) 12,990,849 (1,046,943) (7,384,082) 1,422,674 (14,795,461) 22,824,097 (315,387) Other Financing Sources (Uses) Refunding bonds issued Issuance of debt Premium on bonds issued Payments to bond refunding escrow agent Transfers In Transfers Out 35,510,000 1,039,481 16,968,105 (27,205,066) 112,000 20,159,941 (48,650,688) 35,000 16,357,492 (30,113,010) 103,410,000 30,325,000 14,096,688 (114,802,841) 12,890,960 (20,363,855) 3,000,000 108,061 17,925,171 (28,236,236) 28,975,000 5,199,304 (28,814,053) 17,684,545 (19,786,126) 30,420,000 3,146,339 36,612,624 (35,000,305) 2,590,000 292,139 14,049,347 (18,117,997) 20,855,000 1,870,000 2,448,280 (22,641,792) 9,787,365 (17,015,124) 21,495,000 55,880,000 8,086,575 (26,081,153) 11,422,490 (17,724,676) Total Other Financing Sources (Uses) Net Change in Fund Balance Debt Service as a percentage of noncapital expenditures (1) 26,312,520 $ 5,271,917 20.91% (28,378,747) $ (36,155,195) (13,720,518) $ 21.00% (21,287,170) 17.73% 25,555,952 $ (7,203,004) 38,546,801 $ 19.85% Beginning in Fiscal Year 2015, Police and Fire expenditures were combined into the Public Safety category. Source: Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds City financial records and reports 125 (8,249,947) 17.16% 3,258,670 $ (4,125,412) 21.03% 35,178,658 $ 36,601,332 15.24% (1,186,511) $ (15,981,972) 14.32% (4,696,271) $ 18,127,826 13.91% 53,078,236 $ 52,762,849 11.60% Table V CITY OF PEORIA, ARIZONA CITY TRANSACTION PRIVILEGE TAXES BY CATEGORY LAST TEN FISCAL YEARS Fiscal Year 2013 2014 2015 2016 2017 2018 Retail Sales Contracting Rentals Utilities Telecom/Cable TV Restaurant/Bar Amusement Use Other $ 34,115,601 4,716,985 7,918,121 7,343,965 1,258,991 8,168,064 992,752 474,842 960,914 $ 36,878,825 6,301,005 7,214,392 7,388,831 1,262,651 8,505,082 960,332 624,795 2,101,228 $ 38,908,327 6,257,112 7,522,177 7,498,115 1,217,583 9,284,232 1,036,941 718,931 2,112,606 $ 41,216,781 7,394,036 8,123,884 7,904,665 1,151,941 9,833,912 1,034,959 740,179 2,010,007 $ 43,666,206 8,587,978 8,383,946 8,022,722 942,239 10,335,218 1,021,968 1,243,655 2,032,838 $ 45,112,750 10,219,772 8,823,620 8,911,107 816,179 11,388,465 979,386 1,707,181 1,822,787 $ 48,201,653 9,108,314 8,983,145 8,115,617 697,849 11,661,217 1,246,039 2,248,575 2,920,401 $ 52,794,953 11,472,743 10,684,541 8,303,764 725,389 11,597,024 971,024 2,334,003 864,471 $ 63,612,494 10,673,164 10,279,587 9,042,824 494,061 13,499,778 1,004,435 3,551,444 1,694,768 $ 69,900,613 11,285,579 11,194,971 9,164,337 446,508 15,917,098 1,689,514 3,048,117 2,875,195 Total $ 65,950,235 $ 71,237,141 $ 74,556,024 $ 79,410,364 $ 84,236,770 $ 89,781,247 $ 93,182,810 $ 99,747,911 $ 113,852,555 $ 125,521,932 8.4% 42.7% 6.8% 1.5% -3.5% 5.0% 10.8% -16.2% 29.8% 8.1% 33.6% -8.9% 0.6% 0.3% 4.1% -3.3% 31.6% 118.7% 5.5% -0.7% 4.3% 1.5% -3.6% 9.2% 8.0% 15.1% 0.5% 5.9% 18.2% 8.0% 5.4% -5.4% 5.9% -0.2% 3.0% -4.9% 5.9% 16.1% 3.2% 1.5% -18.2% 5.1% -1.3% 68.0% 1.1% 3.3% 19.0% 5.2% 11.1% -13.4% 10.2% -4.2% 37.3% -10.3% 6.8% -10.9% 1.8% -8.9% -14.5% 2.4% 27.2% 31.7% 60.2% 9.5% 26.0% 18.9% 2.3% 3.9% -0.6% -22.1% 3.8% -70.4% 20.5% -7.0% -3.8% 8.9% -31.9% 16.4% 3.4% 52.2% 96.0% 9.9% 5.7% 8.9% 1.3% -9.6% 17.9% 68.2% -14.2% 69.7% Total 8.6% 8.0% 4.7% 6.5% 6.1% 6.6% 3.79% 7.05% 14.14% 10.25% Note: Includes all governmental fund types % Growth by Year Retail Sales Contracting Rentals Utilities Telecom/Cable TV Restaurant/Bar Amusement Use Other Source: City financial records and reports 126 2019 2020 2021 2022 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING SALES TAX RATES LAST TEN FISCAL YEARS Table VI City Direct Rates (1): Retail Sales (excluding groceries) Groceries Contracting Rentals Hotel/Transient Lodging Utilities Telecommunications Restaurant/Bar Amusement All Others 2013 Year Taxes Are Payable 2014 2015 2016 2017 2018 2019 2020 2021 2022 1.80% 1.80% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.80% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% 1.80% 1.60% 1.80% 1.80% 5.60% 3.30% 1.80% 2.80% 2.80% 1.80% County Rates: Retail Sales (excluding groceries) Groceries Hotel/Transient Lodging Mining - Nonmetal All Others 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% 0.70% 0.70% 1.77% 0.44% 0.70% State Rates (2): Retail Sales (excluding groceries) Hotel/Transient Lodging Mining - Nonmetal Mining - Severance All Others 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% 5.60% 5.50% 3.13% 2.50% 5.60% Notes: (1) Pursuant to City Charter, increases in the City transaction privilege (sales) tax rates are subject to voter approval. Prior to January 2017, the City collected its own sales tax. In January 2017, the state began collecting and remitting the sales tax to the City. The City has earmarked 0.8% of its sales tax for payment of Excise Tax and State Shared Revenue Obligations. (2) The State transaction privilege (sales) tax is levied against the same categories of business activity as the City's sale tax with the exception of groceries and prescription drugs, which the State exempts from tax. The State collects and distributes a portion of its sales tax revenues to all cities and towns based on the city or town's population relative to the aggregate population of all cities and towns as shown by the latest census. Source: ADOR Transaction Privilege And Other Tax Rate Tables 127 Table VII CITY OF PEORIA, ARIZONA SALES TAX PAYERS - BY CATEGORY CURRENT YEAR AND NINE YEARS AGO 2022 Category # of Payers Percentage of Total Payers Retail Sales Contracting Restaurant/Bar Rental Utilities Telecom/Cable TV Use Amusement Others 5,992 328 307 3,838 1,290 45 12 182 82 49.6% 2.7% 2.5% 31.8% 10.7% 0.4% 0.1% 1.5% 0.7% Total 12,076 100.00% Sales Tax Paid $ Percentage of Total City Sales Tax Revenue 2013 # of Payers Percentage of Total Payers 69,900,613 11,285,579 15,917,098 11,194,971 9,164,337 446,508 3,048,117 1,689,514 2,875,195 55.70% 9.00% 12.70% 9.00% 7.30% 0.50% 2.40% 1.30% 2.30% 2,370 3,948 348 6,447 16 135 1,342 59 84 16.07% 26.77% 2.36% 43.71% 0.11% 0.92% 9.10% 0.40% 0.57% 125,521,932 100.20% 14,749 100.00% Source: City Sales Tax system City financial records 128 Sales Tax Paid $ Percentage of Total City Sales Tax Revenue 34,115,601 4,716,985 8,168,064 7,918,121 7,343,965 1,258,991 474,842 992,752 960,914 51.70% 7.20% 12.40% 12.00% 11.10% 1.90% 0.70% 1.50% 1.50% 65,950,235 100.00% CITY OF PEORIA, ARIZONA ASSESSED VALUES BY PROPERTY CLASSIFICATION LAST TEN FISCAL YEARS 2014 2013 620,970,965 119,387,647 $ 2015 $ $ $ $ 1,057,413,204 -7.0% $ 1,155,587,438 9.3% $ 1,178,016,995 1.9% $ 1,244,679,295 5.7% $ 1,340,068,217 7.7% $ 1,439,812,989 7.4% $ 1,556,721,002 8.1% $ 1,659,175,244 15.2% $ 1,780,974,057 7.3% Net Assessed Value Per Capita Population $ 7,274 156,371 $ 6,702 157,780 $ 7,203 160,432 $ 7,174 164,212 $ 7,400 168,192 $ 7,632 172,259 $ 8,008 179,800 $ 8,641 190,985 $ 8,687 194,517 $ 9,156 194,517 297,883,403 40,513,630 1,040,707 396,725 - 740,037,974 243,816,250 $ 813,110,830 259,614,712 310,764,850 44,053,047 1,065,441 305,265 25,390 $ 328,762,027 36,731,719 1,015,986 577,715 - 875,459,952 290,792,306 $ 2022 1,137,434,740 -10.9% 291,761,032 44,305,284 1,137,482 24,540 5,100 674,378,782 230,466,048 2021 $ 298,078,633 42,347,136 1,205,775 59,907 48,182 626,696,840 214,086,717 2020 Net Assessed Value % Growth 304,844,019 43,659,181 1,118,206 83,177 7,124 614,234,433 199,613,372 2019 $ Total Direct Secondary Tax Rate $ 2018 Residential (Owner occupied) Residential (Renter occupied) Commercial, Industrial, Mining & Utilities Agriculture & Vacant Railroad Historic & Environmental Public Property Improvements 341,042,160 54,523,204 1,399,678 103,122 7,964 546,593,560 161,107,937 Fiscal Year 2017 2016(b) Table VIII 352,052,608 36,824,728 1,040,771 502,515 48,122 954,002,402 309,884,348 $ 356,175,720 37,571,067 1,002,644 488,535 50,528 1,034,473,284 328,554,140 379,013,645 37,321,864 1,061,989 496,080 53,055 1.25 1.25 1.25 1.25 1.25 1.25 1.15 1.15 1.15 1.15 Full Cash Value % Growth $ 10,635,350,631 -10.3% $ 10,057,364,678 -5.4% $ 11,162,489,178 11.0% $ 13,968,351,523 25.1% $ 15,264,587,035 9.3% $ 16,607,545,225 8.8% $ 18,374,791,035 10.6% $ 20,055,499,784 9.1% $ 22,175,481,320 20.7% $ 24,444,971,352 10.2% Full Cash Value Per Capita $ $ $ $ $ $ $ $ $ $ Net Assessed Value as a Percentage of Full Cash Value 68,014 10.7% 63,743 69,578 10.5% 10.4% 85,063 8.4% 90,757 8.2% 96,410 8.1% 102,196 7.8% Note: All property, both real and personal, is assigned a classification to determine its assessed valuation for tax purposes. Each classification is defined by property use and has an assessment ratio that is multiplied by the taxable value of the property to obtain the assessed valuation. The assessment ratios for the major classes of property are as follows: Property Tax Assessment Ratios (a) Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Residential 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Agriculture and Vacant Land 16% 16% 16% 16% 15% 15% 15% 15% 15% 15% Railroad 15% 15% 16% 15% 14% 15% 14% 15% 15% 15% (a) Several additional classes of property exist, but seldom amount to a significant portion of an entity's total valuation. (b) Prior to FY2015-16, Primary or Limited Property Values were used for primary ad valorem taxes which are levied for operations of the city and Secondary Assessed Values were used for secondary ad valorem taxes which are levied for debt service. Beginning in FY2015-16, with a voter approved constitutional amendment, both primary and secondary ad valorem taxes are now levied on the Limited Property Values. Because FY2015-16 is the first year for implementation of the constitutional amendment and use of Limited Property Values, there is no comparative data from prior years and accordingly the Net Assessed Values presented for years prior to FY2015-16 represent Secondary Assessed Values based on the then-applicable but now replaced valuation rules. Source: Arizona Department of Revenue - Property Tax Division-Abstract of the Assessment Roll City Financial Records 129 111,320 7.8% 116,111 7.5% 125,670 7.3% CITY OF PEORIA, ARIZONA COMPARATIVE ASSESSED VALUES LAST TEN FISCAL YEARS Table IX Fiscal Year 2013 City of Peoria $ 1,137,434,740 2014 $ 1,057,413,204 2015 $ 1,155,587,438 2016 (a) $ 1,178,016,995 2017 $ 1,244,679,295 2018 $ 1,340,068,217 2019 $ 1,439,812,989 2020 $ 1,556,721,002 2021 $ 1,659,175,244 2022 $ 1,780,974,057 Peoria Unified School District No. 11 1,460,442,551 1,350,310,615 1,471,213,352 1,475,721,803 1,549,607,885 1,649,351,547 1,780,118,947 1,934,677,253 2,043,501,690 2,188,687,421 Maricopa County 34,400,455,712 32,229,006,810 35,079,646,593 34,623,670,323 36,135,494,474 38,251,891,249 40,423,232,421 43,194,326,395 45,704,969,813 48,724,126,672 State of Arizona 56,283,023,907 52,598,341,678 55,349,948,120 54,840,074,052 56,573,588,295 59,404,007,785 62,328,357,186 66,158,541,837 69,914,521,042 74,200,233,397 (a) Prior to FY2015-16, Primary or Limited Property Values were used for primary ad valorem taxes which are levied for operations of the city and Secondary Assessed Values were used for secondary ad valorem taxes which are levied for debt service. Beginning in FY2015-16, with a voter approved constitutional amendment, both primary and secondary ad valorem taxes are now levied on the Limited Property Values. Because FY2015-16 is the first year for implementation of the constitutional amendment and use of Limited Property Values, there is no comparative data from prior years and accordingly the Net Assessed Values presented for years prior to FY2015-16 represent Secondary Assessed Values based on the then-applicable but now replaced valuation rules. Source: Arizona Department of Revenue - Property Tax Division Abstract of the Assessment Roll City financial records 130 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 assessed value) Total Direct City Primary Secondary Total 2013 $ Peoria Unified School District No. 11 (1) Primary Secondary Total Maricopa County (2) Primary Secondary Total Total Primary Secondary Total $ 0.19 1.25 1.44 2014 $ 0.19 1.25 1.44 Fiscal Year 2015 $ 0.19 1.25 1.44 2016 $ 0.19 1.25 1.44 2017 $ 0.19 1.25 1.44 2018 $ 0.19 1.25 1.44 Table X 2019 $ 0.29 1.15 1.44 2020 $ 0.29 1.15 1.44 2021 $ $ 0.29 1.15 1.44 4.01 3.02 7.03 4.18 3.35 7.53 4.43 2.84 7.27 4.93 2.84 7.77 4.78 3.26 8.04 4.51 3.03 7.54 4.00 3.02 7.02 3.86 2.94 6.80 3.75 2.92 6.66 3.72 2.44 6.16 2.87 0.78 3.65 3.08 0.79 3.87 3.11 0.86 3.98 3.13 0.97 4.10 3.14 1.01 4.15 3.09 1.07 4.16 3.05 1.03 4.08 3.01 1.05 4.07 2.97 1.02 3.99 2.89 0.96 3.85 7.07 5.05 12.12 7.45 5.39 12.84 7.73 4.95 12.69 8.25 5.06 13.31 8.11 5.52 13.63 7.79 5.35 13.14 7.34 5.20 12.54 7.16 5.15 12.31 7.01 5.08 12.09 6.90 4.55 11.45 $ $ $ $ $ $ $ $ (1) Peoria Unified School District serves the majority of the City of Peoria. Other areas of the City are served by the Deer Valley Unified School District whose most recent rates are as follows: Primary Secondary Deer Valley Unified School District $ 3.76 $ 2.30 (2) The Maricopa County rates includes the rates for the County, State Education Equalization Assistance and other county districts and special districts as follows: Maricopa County State Education Equalization Assistance Maricopa County Community College District Maricopa County Flood Control District Maricopa County Fire District Assistance Maricopa County Library District Maricopa County Special Health Care District West Maricopa Education Center Central Arizona Water Conservation District Fiscal Year 2018 Tax Rate 0.29 1.15 1.44 2022 Primary $ 1.35 0.43 1.11 $ 2.89 Secondary $ 0.11 0.18 0.01 0.06 0.30 0.16 0.14 $ 0.96 Note: All rates rounded to two decimal places from the four shown by the County Source: Maricopa County Assessor - Tax Rates Publication 131 $ CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING PROPERTY TAX LEVIES LAST TEN FISCAL YEARS Total Direct City Primary Secondary Total 2013 $ 2,154,484 14,217,934 16,372,418 2014 $ 1,998,305 13,217,665 15,215,970 2015 $ 2,115,212 14,444,843 16,560,055 Tax Levy Fiscal Year 2017 2016 $ 2,238,232 14,725,212 16,963,444 $ 2,364,891 15,558,491 17,923,382 Table XI 2018 $ 2,546,130 16,750,853 19,296,983 2019 $ 4,175,458 16,557,849 20,733,307 2020 $ 4,514,491 17,902,292 22,416,783 2021 $ 4,811,608 19,080,515 23,892,123 2022 $ 5,164,825 20,481,202 25,646,027 Peoria Unified School District No. 11 (1) Primary Secondary 58,370,644 44,104,877 56,069,720 45,266,377 62,749,751 41,807,627 72,782,246 41,966,017 74,140,908 50,494,525 74,370,911 50,046,959 71,186,957 53,764,234 74,661,130 56,922,243 76,563,878 59,604,705 81,502,342 53,396,580 Maricopa County (2) Primary Secondary 982,926,843 249,995,761 986,315,014 251,345,124 1,043,203,072 274,744,408 1,083,409,268 234,978,404 1,134,787,546 337,146,316 1,179,611,336 356,706,002 1,231,523,511 373,658,155 1,300,978,643 402,738,173 1,357,249,060 411,099,616 1,405,395,276 409,383,469 Total Primary Secondary Total $ 1,043,451,971 308,318,572 1,351,770,543 $ 1,044,383,039 309,829,166 1,354,212,205 $ 1,108,068,035 330,996,878 1,439,064,913 $ 1,158,429,746 291,669,633 1,450,099,379 (1) The Peoria Unified School District serves the majority of the City of Peoria. Other areas of the City are served by Deer Valley Unified School District, whose most recent tax levies are as follows: Deer Valley Unified School District $ Primary 110,163,191 $ Secondary 72,160,718 (2) The tax levies for Maricopa County include those for the County, State Education Equalization, and other county and special districts whose most recent tax levies are as follows: Maricopa County State Education Equalization Assistance Maricopa County Community College District Maricopa County Flood Control District Maricopa County Fire District Assistance Maricopa County Library District Maricopa County Special Health Care District West Maricopa Education Center Central Arizona Water Conservation District Fiscal Year 2019-2020 Tax Levy Source: $ $ Primary 655,778,021 208,194,759 541,422,496 1,405,395,276 $ $ Secondary 55,787,637 80,429,826 4,186,635 27,090,614 145,022,046 28,494,047 68,372,664 409,383,469 Maricopa County Assessor - Tax Rates and Levies publication 132 $ 1,211,293,345 403,199,332 1,614,492,677 $ 1,256,528,377 423,503,814 1,680,032,191 $ 1,306,885,926 443,980,238 1,750,866,164 $ 1,380,154,264 477,562,708 1,857,716,972 $ 1,438,624,546 489,784,836 1,928,409,382 $ 1,492,062,443 483,261,251 1,975,323,694 CITY OF PEORIA, ARIZONA LIMITED PROPERTY VALUE TOP TEN TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Table XII 2022(a) Taxpayer Arizona Public Service Vestar LPTC LLC Southwest Gas Corporation Park West Retail I LLC DDRA Arrowhead Crossing LLC N 75th AZ Partners LLC Freedom Plaza Limited Partnership Lease BCC Development Inc. Peoria Center Apartments South LLC First Industrial LP Qwest Corporation Plaza III Limited Partnership Target Corporation Sprint Nextel Wireless LP Inland Western Glendale LLC Total Type of Business Gas & Electric Utility Property Development Gas Utility Shopping Center Shopping Center Multi-family Housing Retirement Housing Property Development Multi-family Housing Property Development Telecommunications Nursing Home/Apartments Shopping Center Telecommunications Shopping Center Limited Property Assessed Value $ 32,648,873 8,944,905 7,663,088 6,395,959 5,114,003 4,658,497 4,455,363 4,366,369 4,257,377 4,117,425 $ 82,621,859 Rank 1 2 3 4 5 6 7 8 9 10 2013 % of Limited Property Assessed Value 1.83% 0.50% 0.43% 0.36% 0.29% 0.26% 0.25% 0.25% 0.24% 0.23% 4.64% $ (a) Prior to FY2015-16, Primary or Limited Property Values were used for primary ad valorem taxes which are levied for operations of the city and Secondary Assessed Values were used for secondary ad valorem taxes which are levied for debt service. Beginning in FY2015-16, with a voter approved constitutional amendment, both primary and secondary ad valorem taxes are now levied on the Limited Property Values Because FY2015-16 is the first year for implementation of the constitutional amendment and use of Limited Property Values, there is no comparative data from prior years and accordingly the Net Assessed Values presented for years prior to FY2015-16 represent Secondary Assessed Values based on the then-applicable but now replaced valuation rules. Note - As a quasi-governmental entity, Salt River Project pays in-Lieu taxes, rather than property taxes. For fiscal year 2022, the assessed value of Salt River Project property within the City of Peoria is $20,187,557. Source - Maricopa County Treasurer's or Assessor's Office 133 Taxable Secondary Assessed Value $23,195,396 $8,752,872 Rank 1 2 % of Taxable Secondary Assessed Value 2.04% 0.77% $6,681,435 $4,939,537 3 5 0.59% 0.43% 4,007,925 9 $5,418,735 $4,385,299 $4,259,111 $4,120,034 $3,635,992 69,396,336 4 6 7 8 10 0.48% 0.39% 0.37% 0.36% 0.35% 5.78% CITY OF PEORIA, ARIZONA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended June 30, Collected with the Fiscal Year of the Levy (2) Percentage Amount of Levy Taxes Levied for the Fiscal Year (1) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 $ 25,646,027 23,892,123 22,416,783 20,733,307 19,296,983 17,923,382 16,963,444 16,560,055 15,215,970 16,372,418 Notes: (1) Source: Maricopa County Treasurer's Office Maricopa County Assessor's Office City financial records and reports (2) $ 25,375,055 23,599,465 21,914,662 20,589,725 18,955,264 17,596,843 16,695,651 16,290,571 14,882,168 15,962,490 98.94% 98.78% 97.76% 99.31% 98.23% 98.18% 98.42% 98.37% 97.81% 97.50% Table XIII Collections in Subsequent Years (2) $ 220,848 279,501 49,002 156,352 178,303 143,742 179,807 231,287 247,412 Levy figures obtained from Maricopa County Tax Levy Books-February Publication. Collection amount obtained from Maricopa County Treasurer's Secured Levy Report at 6/30/2020 134 Total Collections To Date Percentage Amount of Levy $ 25,375,055 23,820,313 21,914,662 20,638,727 19,111,616 17,775,146 16,839,393 16,470,378 15,113,455 16,209,902 98.94% 99.70% 97.76% 99.54% 99.04% 99.17% 99.27% 99.46% 99.33% 99.01% CITY OF PEORIA, ARIZONA UTILITY STATISTICAL DATA LAST TEN FISCAL YEARS 2013 2014 $37.41 -1.55% $37.31 -0.27% $35.54 -4.74% $37.53 5.60% $24.16 12.42% $23.36 -3.31% $23.99 2.70% $13.38 -13.12% $13.38 0.00% $13.35 -0.22% Water Average bill % Increase Wastewater Average bill % Increase Residential Solid Waste Average bill % Increase Average Utility Bill Amounts Last Ten Fiscal Years 2015 2016 (c) 2017 Water # of Accounts % Increase Wastewater # of Accounts % Increase Residential Solid Waste # of Accounts % Increase Table XIV 2018 2019 2020 2021 2022 $39.13 4.26% $41.44 5.90% $42.15 1.71% $43.02 2.06% $43.87 1.98% $45.08 2.76% $24.64 2.71% $25.22 2.35% $25.26 0.16% $26.60 5.30% $26.91 1.17% $27.29 1.41% $28.58 4.73% $13.44 0.67% $13.39 -0.37% $14.23 6.27% $14.42 1.34% $15.29 6.03% $16.21 6.02% $17.06 5.24% Utility Service Connections Last Ten Fiscal Years 2015 2016 (c) 2017 2018 2019 2020 2021 2021 2013 2014 49,416 1.87% 50,399 1.99% 51,405 2.00% 55,558 8.08% 57,011 2.62% 58,061 1.84% 59,185 1.94% 60,705 2.57% 62,083 2.27% 63,357 2.05% 52,674 2.23% 53,548 1.66% 54,599 1.96% 56,235 3.00% 57,909 2.98% 59,499 2.75% 60,913 2.38% 62,617 2.80% 63,924 2.09% 65,169 1.95% 50,727 2.47% 51,609 1.74% 52,640 2.00% 54,262 3.08% 55,828 2.89% 57,452 2.91% 58,816 2.37% 60,123 2.22% 61,332 2.01% 62,575 2.03% Charges for Water Services Base Minimum Monthly Bill As of June 30, 2022 Multi Family Customers Base Charge per Meter $8.82 Charge per Dwelling Unit $4.87 Resid., Landscape Meter Size 5/8"-3/4" 1" 1 1/2" 2" 3" 4" 6" 8" Charge $ 16.91 20.70 34.61 49.79 90.35 135.92 262.45 414.36 Charges for Wastewater Services Base Minimum Monthly Bill As of June 30, 2022 Multi Family Customers Base Charge per Meter $4.01 Charge per Dwelling Unit $3.64 Resid., Landscape Meter Size 5/8"-3/4" 1" 1 1/2" 2" 3" 4" 6" 8" Charge $ 10.08 10.08 24.22 36.36 68.77 105.17 206.28 327.64 (a) Base service charge is based on each bill rendered. (b) For residential & multi-plex users, volume is measured as the rate per 1,000 gallons of a four-month winter average (December - March). For commercial customers, the volume charge is based on actual monthly usage. (c) Water account total includes the acquisition of New River System. These accounts were excluded from the FY16 average water bill calculation, but included beginning in FY17. Source: City customer service and billing records (continued) 135 Table XIV CITY OF PEORIA, ARIZONA UTILITY STATISTICAL DATA Volume Consumption (gallons) 0 - 4,000 4,001 - 10,000 10,001 - 20,000 20,000+ Volume Charges for Water Services Usage Per Month As of June 30, 2021 Residential Multiplex (per 1,000 gallons) (per 1,000 gallons) $ 1.22 $ 3.25 4.62 5.20 - Commercial (per 1,000 gallons) $ - 1,000+ - 3.25 - 0 - 10,000 10,001 - 50,000 50,000+ - - 1.22 3.25 4.62 Water Meter Permit Charges As of June 30, 2021 Meter Size Charge 317 3/4" $ 1 1/2" 495-781 2" 629 - 1,033 3" 1,751 - 2,662 4" 2,231 - 3,172 6" 3,781 - 5,086 Hydrant meter 1,280 Commercial accounts By meter size Charges for Residential Solid Waste As of June 30, 2021 Monthly fee Single container & recycling $ 17.06 Additional container 13.98 Charges for Storm Water As of June 30, 2021 Monthly All Customers $ 1.50 X (a) Base service charge is based on each bill rendered. (b) For residential & multiplex users, volume is measured as the rate per 1,000 gallons of a three-month winter average (December - February). For commercial customers, the volume charge is based on actual monthly usage. Source: City customer service and billing records (continued) 136 CITY OF PEORIA, ARIZONA UTILITY STATISTICAL DATA TEN LARGEST WATER USERS CURRENT YEAR AND NINE YEARS AGO Table XIV 2013 2021 Entity Trilogy at Vistancia Blue Star Golf Blackstone Country Club City of Peoria - Parks North Desert Harbor Lake Ventana Lakes N. of Beardsley Lake City of Peoria Padre's Pump Station Sunrise Water Company City of Peoria - Right of Way Vistancia Village Association Christ's Church of the Valley Sun Garden Park II Freedom Plaza LTD Partnership Sun Garden Mobile Home Park Centennial High School Forum at Desert Harbor Avg Monthly Water Usage 17,563 16,042 15,461 10,111 8,809 8,459 7,335 6,993 6,980 6,822 Type of User Commercial Landscape Golf Course Golf Course City Park Homeowner's Association Homeowner's Association Sports Complex Water Company Right of Way Landscape Homeowner's Association Church Homeowner's Association Health Care Facility Homeowner's Association Public School Health Care Facility Water usage measured in thousands of gallons Source: City customer service and billing records (concluded) 137 Rank 1 2 3 4 5 6 7 8 9 10 % Avg Monthly Water Usage 2.07% 1.89% 1.82% 1.19% 1.04% 1.00% 0.86% 0.82% 0.82% 0.80% Avg Monthly Water Usage 2,415 Rank 4 % Avg Monthly Water Usage 0.34% 5,656 3,287 6,772 2 3 1 0.80% 0.47% 0.96% 2,055 1,845 1,665 1,552 1,488 1,478 5 6 7 8 9 10 0.29% 0.26% 0.24% 0.22% 0.21% 0.21% CITY OF PEORIA, ARIZONA OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Obligation Bonds General Obligation WIFA Loans Municipal Development Authority Debt Obligations Excise Tax Revenue Obligations Direct Purchase and Loan Obligations Special Assessment Bonds Community Facilities District Bonds 2014 2013 $ Business-type Activities Water and Sewer Revenue Bonds WIFA Loans 162,375,000 85,230,000 3,520,000 53,725,000 $ 37,295,000 82,212,652 2015 152,820,000 81,035,000 3,195,000 51,095,000 $ 32,720,000 77,780,535 2016 145,088,146 77,797,482 2,865,416 48,409,540 $ 29,669,224 73,235,496 Table XV 2017 170,995,550 73,257,994 2,508,814 40,575,685 $ 24,622,433 78,549,337 Fiscal Year 158,031,697 68,529,573 2,137,211 40,400,804 $ 19,095,643 74,229,903 2018 2019 13,383,853 70,004,831 8,412,062 62,724,636 $ 325,739,598 $ 298,202,194 $ 289,356,757 $ 362,921,663 $ $ 1,561.39 $ 1,515.08 $ 1,865.76 424,357,652 $ 398,645,535 $ 377,065,304 $ 390,509,813 $ 362,424,831 $ 327,826,497 Total Debt Per Capita $ 2,714.08 $ 2,565.75 $ 2,350.33 $ 2,378.08 $ 2,154.83 $ 1,903.06 7.1% 6.4% 5.8% 5.7% Source: City financial records. Debt schedule exhibits and Long-term liability activity footnote 138 5.1% 4.4% 1,851.20 4.1% 142,247,708 3,000,000 30,620,436 27,130,287 33,217,566 $ 2022 $ 157,167,099 32,753,534 30,761,347 33,920,919 $ $ 2021 135,863,947 34,792,700 36,514,304 37,266,862 Total Primary Government Total Debt as a % of Personal Income 2020 4,665,273 57,320,925 3.8% 128,984,480 3,954,426 28,437,337 23,415,375 29,993,568 $ 41,331,911 33,239,660 3.7% 174,891,326 3,724,398 24,222,767 19,621,324 25,450,008 66,293,549 48,718,291 3.6% Table XVI CITY OF PEORIA, ARIZONA RATIO OF NET GENERAL BONDED DEBT TO FULL CASH VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Fiscal Year 2014 2013 Bonded Debt (1) Less: $ 162,375,000 $ 131,549,434 Debt Service Reserves (2) Net Bonded Debt 2015 $ 152,820,000 $ 123,895,463 30,825,566 2016 $ 145,088,146 $ 119,229,075 28,924,537 2017 $ 170,995,550 $ 144,412,048 25,859,071 2018 $ 158,031,697 $ 132,501,730 26,583,502 2019 2020 $ 135,863,947 15,887,194 17,095,199 $ 119,976,753 $ 140,071,900 25,529,967 $ 157,167,099 2021 $ 142,247,708 $ 125,871,598 2022 $ 128,984,480 $ 110,706,795 16,376,110 $ 174,891,326 $ 155,217,985 18,277,685 19,673,341 Percentage of Net Bonded Debt to Full Cash Value 1.2% 1.2% 1.1% 1.0% 0.9% 0.7% 0.8% 0.6% 0.5% 0.6% Percentage of Net Bonded Debt to Assessed Value (3) 11.6% 11.7% 10.3% 12.3% 10.6% 9.0% 9.7% 8.1% 6.7% 8.7% Net Bonded Debt Per Capita $841 $785 $743 $879 $788 $696 $796 $659 $569 $798 Net Bonded Debt as a % of Personal Income 2.20% 1.99% 1.83% 2.12% 1.87% 1.62% 1.77% 1.51% 1.25% 1.54% (1) Represents face value of general obligation debt outstanding plus deferred bond premiums (2) Fund balance of GO Bond Debt Service Fund per the fund financial statements (3) Prior to FY2015-16, Primary or Limited Property Values were used for primary ad valorem taxes which are levied for operations of the city and Secondary Assessed Values were used for secondary ad valorem taxes which are levied for debt service. Beginning in FY2015-16, with a voter approved constitutional amendment, both primary and secondary ad valorem taxes are now levied on the Limited Property Values. Because FY2015-16 is the first year for implementation of the constitutional amendment and use of Limited Property Values, there is no comparative data from prior years and accordingly the Net Assessed Values presented for years prior to FY2015-16 represent Secondary Assessed Values based on the then-applicable but now replaced valuation rules. Note: Personal income and population information may be found on Table XXV Full cash value information may be found on Table VIII 139 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT - CURRENT FISCAL YEAR AS OF JUNE 30, 2021 Governmental Unit Overlapping: State of Arizona Maricopa County Maricopa County Community College District Maricopa County Flood Control District Maricopa County Library District Maricopa County Fire District Assistance Maricopa County Special Health Care District Central AZ Water Conservation West MEC Vocational District Sub-total - City-wide overlapping Total City-wide debt levies (3) $ Unified School Districts: Peoria No. 11 Deer Valley No. 97 Nadaburg No. 81 Sub-total - Unified school district overlapping Total overlapping Direct: City of Peoria Limited Assessed Valuation General Obligation Bonds Outstanding (2) 74,200,233,397 48,724,126,672 48,724,126,672 44,882,715,452 48,724,126,672 48,724,126,672 48,837,616,505 48,837,616,505 18,045,628,311 $ Percentage Applicable to City of Peoria (1) 2.40% 3.66% 3.66% 3.97% 3.66% 3.66% 3.65% 3.65% 9.87% 1,528,794,894 249,506,489 1,736,044 167,005,000 164,875,000 2,266,000 69.85% 8.09% 1.84% 116,652,993 13,338,388 41,694 130,033,075 177,656,256 $1,780,974,057 $178,615,724 100.00% 178,615,724 Total direct and overlapping debt $ 6,751,740 26,637,962 14,233,479 47,623,181 226,238,905 $ 356,271,980 Notes: Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the city. This table estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses in the city. This process recognizes that, when considering the city'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. Does not include debt amount of Vistancia Community Facilities District ($24,853,938) or Vistancia West Community Facilities District ($5,139,630). (1) Percentage applicable to the City is computed on the ratio of secondary assessed valuation. (2) Includes total stated principal amount of general obligation bonds outstanding. Does not include certificates of participation, revenue obligations or loan obligations outstanding for the jurisdictions listed. (3) Total City-wide debt levies are County debt plus City debt. (4) Includes the GO WIFA loans as these are general obilgation debt and restricted by the same constraints as general obligation bonds. Sources: - City of Peoria financial records - Maricopa County Treasurer - Individual jurisdictions' ACFRs and official statements - Maricopa County Assessor - State of Arizona, Department of Revenue, Abstract of the Assessment Roll 140 Secondary Tax Rate per $100 Assessed Amount Applicable to City of Peoria 184,715,000 730,462,381 144,220,000 (4) Table XVII $ 0.11 0.18 0.06 0.01 0.30 0.14 0.16 2.44 2.30 0.18 $ 1.15 Table XVIII CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT - CURRENT FISCAL YEAR AS OF JUNE 30, 2022 Limited Assessed Valuation Governmental Unit Overlapping: State of Arizona Maricopa County Maricopa County Community College District (3) Maricopa County Flood Control District Maricopa County Library District Maricopa County Fire District Assistance Maricopa County Special Health Care District Central AZ Water Conservation West MEC Vocational District Sub-total - City-wide overlapping Total City-wide debt levies (4) $ 74,200,233,397 48,724,126,672 48,724,126,672 44,882,715,452 48,724,126,672 48,724,126,672 48,837,616,505 48,837,616,505 18,045,628,311 Unified School Districts: Peoria No. 11 Deer Valley No. 97 Nadaburg No. 81 Sub-total - Unified school district overlapping Total overlapping Direct: City of Peoria $ Debt Outstanding (2) $ 1,528,794,894 249,506,489 1,736,044 1,780,974,057 Percentage Applicable to City of Peoria (1) $ 184,715,000 144,220,000 2.40% 3.66% 3.66% 3.97% 3.66% 3.66% 3.65% 3.65% 9.87% 167,005,000 164,875,000 2,266,000 69.85% 8.09% 1.84% 116,652,993 13,338,388 41,694 130,033,075 151,018,294 100.00% 247,909,823 247,909,823 (5) Total direct and overlapping debt $ $ 6,751,740 14,233,479 20,985,219 268,895,042 398,928,117 Notes: Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the city. This table estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses in the city. This process recognizes that, when considering the city'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. (1) Percentage applicable to the City is computed on the ratio of secondary assessed valuation. (2) Includes total stated principal amount of general obligation bonds outstanding. Does not include certificates of participation, revenue obligations or loan obligations outstanding for the jurisdictions listed. (3) Although Maricopa County Community Colleges reports all activity as Business-Type, since the general obligation bonds are repaid solely from tax collections, they will be included with governmental activities. (4) Total City-wide debt levies are County debt plus City debt. (5) GO WIFA Loan is included in the total debt because it was paid for through secondary property taxes. Although the project falls uner the Storm Drain Utility, the City is utilizing secondary property taxes to pay the debt and the debt is secured by the full faith and credit of the City. Sources: - City of Peoria financial records - Maricopa County Treasurer - Individual jurisdictions' ACFRs and official statements - Maricopa County Assessor - State of Arizona, Department of Revenue, Abstract of the Assessment Roll 141 Secondary Tax Rate per $100 Assessed Amount Applicable to City of Peoria $ 0.11 0.18 0.06 0.01 0.30 0.14 0.16 2.44 2.30 0.18 $ 1.15 Table XIX CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT LAST TEN FISCAL YEARS Governmental Unit Overlapping: State of Arizona Maricopa County Community College District County Flood Control District County Free Library Fire District Assistance Education Equalization West MEC Vocational District Central AZ Water Conservation Sub-total - City-wide overlapping Total City-wide levies (1) Unified School Districts: Peoria No. 11 Deer Valley No. 97 Nadaburg No. 81 Sub-total - Unified school district overlapping 2013 $ 25,357,414 3,241,000 28,598,414 394,056,576 2014 $ 23,384,382 3,198,843 26,583,225 317,946,402 2015 $ Fiscal Year 21,550,210 3,025,964 24,576,174 298,736,758 $ 2016 2017 20,203,810 6,722,916 26,926,726 314,264,769 $ 17,547,206 13,247,434 30,794,640 188,826,337 2018 $ 15,609,534 13,266,411 28,875,945 236,046,896 2019 $ 13,561,370 12,333,671 25,895,041 280,497,941 2020 $ 11,260,680 11,410,853 22,671,533 258,887,529 2021 $ 9,077,824 10,721,153 19,798,977 234,584,163 2022 $ 6,751,740 14,233,479 20,985,219 268,895,042 163,033,794 25,160,995 284,900 208,200,535 27,264,686 2,286 180,916,246 25,506,618 1,212 219,811,259 26,927,344 789 186,654,480 30,347,141 579 160,934,200 16,287,234 12,519 161,744,660 14,099,937 8,541 135,901,818 15,421,516 6,105 120,868,113 15,477,532 72,893 116,652,993 13,338,388 41,694 188,479,689 235,467,507 206,424,076 246,739,392 217,002,200 177,233,953 175,853,138 151,329,439 136,418,538 130,033,075 Total overlapping 217,078,103 262,050,732 231,000,250 273,666,118 247,796,840 206,109,898 201,748,179 174,000,972 156,217,515 151,018,294 Direct (2): City of Peoria 365,458,162 291,363,177 274,160,584 287,338,043 158,031,697 207,170,951 254,602,900 236,215,996 214,785,186 247,909,823 $ 582,536,265 $ 553,413,909 $ 505,160,834 $ 561,004,161 $ 405,828,537 $ 413,280,849 456,351,079 $ 410,216,968 $ 371,002,701 $398,928,117 Total direct and overlapping debt (1) - Total City-wide debt levies are County debt plus City debt. (2) - Due to a recommended change in accounting principle, the contracts payable category is no longer being used to calculate direct governmental activities debt. Sources: City Financial Records Individual jurisdictions' CAFRs and official statements for debt of other entities 142 $ CITY OF PEORIA, ARIZONA LEGAL DEBT MARGIN LAST TEN FISCAL YEARS Fiscal Year 2015 2014 2013 2016 2017 Table XX 2018 2019 2020 2021 2022 Property Assessed Value (1) $ 1,137,434,740 $ 1,057,413,204 $ 1,155,587,438 $ 1,178,016,995 $ 1,244,679,295 $ 1,340,068,217 $ 1,439,812,989 $ 1,556,721,002 $ 1,659,175,244 $ 1,780,974,057 6% Limitation Debt limit $ 68,246,084 $ 63,444,792 $ 69,335,246 $ 70,681,020 $ 74,680,758 $ 80,404,093 $ 86,388,779 $ 93,403,260 $ 99,550,515 $ 106,858,443 Total net debt applicable to limit Legal 6% Debt Margin 1,665,000 $ Total net debt applicable to the limit as a percentage of debt limit 20% Limitation Debt limit $ 2.4% $ Total net debt applicable to limit Legal 20% Debt Margin 66,581,084 350,000 227,486,948 Total net debt applicable to the limit as a percentage of debt limit 66,776,948 70.6% $ 0.6% $ 160,710,000 $ 63,094,792 - 211,482,641 59,012,641 72.1% $ 0.0% $ 152,470,000 $ 69,335,246 4,814,727 231,117,488 88,192,488 61.8% $ 6.8% $ 142,925,000 $ 65,866,293 4,149,727 235,603,399 80,258,126 $ 5.6% $ 155,345,273 $ 70,531,031 2,999,727 248,935,859 65.9% 104,845,586 57.9% $ 81,862,506 3.7% $ 144,090,273 $ 77,404,366 4,526,273 268,013,643 143,958,370 $ 287,962,598 $ 146,308,871 46.3% 143 49.2% 92,461,987 $ 1.0% $ 141,653,727 (1) Prior to FY2015-16, Primary or Limited Property Values were used for primary ad valorem taxes which are levied for operations of the city and Secondary Assessed Values were used for secondary ad valorem taxes which are levied for debt service. Beginning in FY2015-16, with a voter approved constitutional amendment, both primary and secondary ad valorem taxes are now levied on the Limited Property Values. Because FY2015-16 is the first year for implementation of the constitutional amendment and use of Limited Property Values, there is no comparative data from prior years and accordingly the Net Assessed Values presented for years prior to FY2015-16 represent Secondary Assessed Values based on the then-applicable but now replaced valuation rules. Source: Maricopa County Assessor and City records $ 5.2% 124,055,273 $ 941,273 311,344,200 174,632,343 43.9% $ 0.0% $ 136,711,857 $ 99,550,515 6,398,560 331,835,049 6.0% $ 125,246,729 $ 206,588,320 37.7% 100,459,883 356,194,811 190,765,335 $ 165,429,476 53.6% Table XXI CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - EXCISE TAX AND STATE SHARED REVENUE DEBT OBLIGATIONS GOVERNMENTAL PORTION LAST TEN FISCAL YEARS 2013 Senior Lien Excise Tax and State Shared Revenue Debt Obligations Pledged Revenues Sales and use taxes (1) State-shared sales tax Urban revenue sharing Franchise taxes License and permits Fines and forfeitures User fees and charges Miscellaneous Total Pledged Revenues Senior Lien Debt Service Requirements Principal (2) Interest (2) Total Senior Lien Debt Service Requirements $ $ Estimated Coverage 56,145,066 12,665,191 14,425,958 4,136,004 2,564,075 2,058,925 11,889,776 2,534,262 106,419,257 665,000 1,065,571 1,730,571 Fiscal Year 2015 2014 $ $ 60,587,446 13,431,637 17,172,500 4,194,371 2,800,894 1,933,142 12,535,479 1,379,952 114,035,421 2,010,000 1,708,383 3,718,383 $ 63,331,915 14,139,128 18,650,521 4,312,836 3,132,178 1,699,818 12,703,987 2,146,784 120,117,167 $ 2,020,000 1,642,083 3,662,083 2016 $ $ 2017 67,425,794 14,760,029 18,549,406 4,461,864 4,080,210 1,601,014 11,998,841 2,341,988 125,219,146 2,085,000 1,567,808 3,652,808 $ 71,476,726 15,631,512 20,949,613 4,501,681 4,778,632 1,433,868 14,376,186 2,980,499 136,128,717 $ 2,165,000 1,483,533 3,648,533 2018 (6) $ 76,168,326 15,894,140 20,334,388 5,035,331 5,509,240 1,728,303 16,758,517 4,696,224 146,124,469 $ 2,361,806 1,385,086 3,746,892 61.49 30.67 32.80 34.28 37.31 39.00 $ 104,688,686 9,927,436 114,616,122 $ 110,317,038 10,861,145 121,178,183 $ 116,455,084 11,334,889 127,789,973 $ 121,566,339 12,231,059 133,797,398 $ 132,480,184 12,939,338 145,419,522 $ 142,377,577 13,977,877 156,355,454 2,095,000 1,803,588 3,898,588 2,185,000 1,730,263 3,915,263 2,285,000 1,648,325 3,933,325 2,385,000 1,545,500 3,930,500 2,490,000 1,438,175 3,928,175 2,665,000 1,114,408 3,779,408 2019 $ $ 2020 79,020,319 17,018,021 20,366,698 4,925,609 5,720,889 2,241,580 16,881,528 5,452,362 151,627,006 2,265,000 1,232,635 3,497,635 $ $ 84,429,889 17,079,368 22,275,583 4,776,257 4,929,081 1,249,763 15,897,926 4,547,082 155,184,949 2,475,000 1,157,476 3,632,476 2021 $ $ 2022 96,328,365 20,186,716 25,147,285 4,965,951 5,287,497 1,436,969 14,599,930 2,400,673 170,353,386 $ 106,277,624 28,070,949 24,816,247 4,961,622 5,100,898 1,619,089 18,305,648 2,257,340 191,409,417 2,535,000 1,091,061 3,626,061 2,610,000 1,004,220 3,614,220 $ 43.35 42.72 46.98 52.96 148,129,371 15,203,014 163,332,385 $ 151,552,473 16,080,887 167,633,360 $ 166,727,325 17,469,832 184,197,157 $ 187,795,197 19,363,508 207,158,705 3,015,000 507,374 3,522,374 3,065,000 447,978 3,512,978 3,130,000 387,598 3,517,598 3,195,000 325,937 3,520,937 Other Excise Tax and State Shared Revenue Debt Obligations (3) Net Pledged Revenues from above (4) Additional Pledged Revenues (5) Total Debt Service Requirements Principal Interest Total Annual Requirements Estimated Coverage Note: $ 29.40 $ $ 30.95 32.49 $ $ 34.04 $ 37.02 41.37 (1) Excludes the 0.3% Transportation Sales Tax approved by voters in September 2005. (2) Although the pledged revenues for all Senior Lien Debt Obligations are excise taxes and state shared revenues (excluding the 0.3% Transportation Sales Tax), some debt service payments, including the 2011 MDA Debt Obligation, are funded by Enterprise Funds. (3) Other Excise Tax and State Shared Revenue Debt Obligations are backed by a senior lien on the .03% transaction privilege tax approved by voters in 2005 and a subordinated lien on the Excise Taxes and State Shared revenues listed above. (4) Pledged revenues on the Senior Lien Debt Obligations, less the debt requirements for the Senior Lien Debt Obligations (5) Revenues of the Transportation Sales Tax Fund, primarily consisting of the 0.3% transaction privilege tax in Note (1). (6) During FY2018, the 2006 and 2008 MDA debt obligations were refunded using direct purchase obligations. As part of the refunding the City deposited $3,128,884, which was available for upcoming debt service payments for the debt being refunded, with the bond escrow agent. This amount is included in debt principal and interest listed above. Source: Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Debt service schedules, City financial records 144 $ $ 46.37 $ 47.72 $ 52.36 $ 58.84 CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - WATER AND WASTEWATER REVENUE BONDS LAST TEN FISCAL YEARS Table XXII Fiscal Year 2014 2013 Gross Revenue (1) Operating and Maintenance Expenses (2) Net Revenue Available for Debt Service $ 52,680,761 28,974,990 23,705,771 $ 2015 54,515,296 30,942,736 23,572,560 $ 2016 52,770,260 35,326,061 17,444,199 $ 2017 60,010,324 33,060,448 26,949,876 $ 2018 64,032,933 35,787,927 28,245,006 $ 2019 69,512,706 38,664,295 30,848,411 $ 2020 69,682,089 39,616,866 30,065,223 $ 2021 72,892,452 47,802,256 25,090,196 $ 2022 78,379,187 49,575,457 28,803,730 $ 75,671,386 61,522,222 14,149,164 Development Fee Revenue Total Net Revenue 3,205,623 26,911,394 4,311,153 27,883,713 4,418,565 21,862,764 5,116,972 32,066,848 6,268,689 34,513,695 6,034,425 36,882,836 6,529,816 36,595,039 6,911,813 32,002,009 9,163,448 37,967,178 6,932,135 21,081,299 Debt Service Requirements Principal (3) Interest (4) Total Debt Service Requirements 8,776,254 3,579,904 12,356,158 9,007,117 3,343,413 12,350,530 9,210,038 3,097,542 12,307,580 9,456,159 3,026,940 12,483,099 10,635,513 2,621,761 13,257,274 10,983,985 2,567,632 13,551,617 12,431,144 2,001,074 14,432,218 11,433,344 1,683,084 13,116,428 52,166,353 1,597,208 53,763,561 8,304,058 1,862,828 10,166,886 $ $ $ $ $ $ $ $ $ $ Ratio of Total Net Revenue/ Total Bond Expense 2.18 2.26 1.78 2.57 2.60 2.72 2.54 2.44 0.71 2.07 Ratio of Net Available/ Total Bond Expense (5) 1.92 1.91 1.42 2.16 2.13 2.28 2.08 1.91 0.54 1.39 (1) Includes total operating revenues and investment income of the Water Utility and Wastewater Utility Enterprise Funds. (2) Includes total operating expenses of the Water Utility and Wastewater Utility Enterprise Funds, less depreciation and amortization. (3) Includes principal for Water and Sewer Revenue bonds and Water Infrastructure Finance Authority loans. Although some MDA bonds are financed by the Utility Funds, the pledged revenue is excise tax therefore the debt is included in the MDA Bond debt coverage calculations on Table XXI. (4) Bond interest payments only. Does not include amortization of loss on refunding, capitalized interest, agent fees or amortization of bond issuance costs that are included in interest expense on the statement of revenues, expenses, and changes in net position. (5) Excludes Development Fee Revenue. (6) In FY2012 $24,810,509 in principal and $405,829 in interest were defeased. These additional debt payments have been removed from the FY12 debt service requirements so as not to distort the ratios. Source: Statement of Revenues, Expenses, and Changes in Fund Net Position Repayment schedules for debt serviced by Water and Wastewater Utility Enterprise funds 145 CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - SPECIAL ASSESSMENT BONDS LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 2018 Pledged Revenues (1) $ 1,484,283 $ 1,259,303 $ 1,168,526 $ 1,078,196 $ 2,787,558 $ 2,130,000 Debt Service Requirements Principal Interest (2) Total Annual Requirements 1,140,000 222,820 $ 1,362,820 325,000 149,600 474,600 340,000 135,788 475,788 355,000 121,338 476,338 370,000 106,250 476,250 2,130,000 90,825 $ 2,220,825 5.85 0.96 Estimated Coverage 1.09 $ 2.65 $ 2.46 $ $ 2.26 Table XXIII 2019 2020 $ - $ - 2021 $ - $ - (1) - Pledged revenues equals Special Assessment Debt Service Fund current year fund balance plus current year principal & interest payments. (2) - Bond interest payments only. Does not include agent fees included in interest expense on the Statement of Revenues, Expenditures and Changes in Fund Balance. Source: City financial records Governmental Fund Financial Statements 146 2022 $ - $ - $ - $ - CITY OF PEORIA, ARIZONA SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Current Assessments Due 2013 $ 1,213,646 Fiscal Year 2014 (3) 2015 (4) $ 455,116 $ 381,761 Assessments Collected Prepaid Assessments Collected Total Assessments Collected (1) 1,213,646 $ 1,213,646 455,116 675,958 $ 1,131,074 100.0% 100.0% $ 3,520,000 $ 2,603,127 Ratio of Current Collections to Amount Due Outstanding Assessment Principal (2) $ 2016 (5) 381,950 2017 (6) $344,741 $ 381,950 381,950 344,741 1,809,173 $2,153,914 100.0% 100.0% 100.0% $ 2,326,112 $ 2,036,876 $ 381,761 381,761 $0.00 $ 2018 - $ Table XXIV $ 2019 - $ 2020 - $ $ 2021 - $ $ 2022 $ N/A N/A N/A $0.00 $0.00 $0.00 $0.00 $0.00 (3) These Special Assessments relate to Improvement District 0601 which includes three lots. The tax rolls of Maricopa County Assessor's Office indicate that the current full cash value of the Assessed Property is approximately $25,957,000 for Lot No. 1, $17,577,500 for Lot No. 2 and $669,500 for Lot No. 3. There are no overlapping Assessment Districts and all lots are current in their assessment payments. (4) These Special Assessments relate to Improvement District 0601 which includes three lots. The tax rolls of Maricopa County Assessor's Office indicate that the current full cash value of the Assessed Property is approximately $25,957,000 for Lot No. 1, $23,400,000 for Lot No. 2 and $669,500 for Lot No. 3. There are no overlapping Assessment Districts and all lots are current in their assessment payments. (5) These Special Assessments relate to Improvement District 0601 which includes three lots. The tax rolls of Maricopa County Assessor's Office indicate that the current full cash value of the Assessed Property is approximately $30,000,000 for Lot No. 1, $21,066,600 for Lot No. 2 and $770,300 for Lot No. 3. There are no overlapping Assessment Districts and all lots are current in their assessment payments. (6) These Special Assessments relate to Improvement District 0601 which includes three lots. The tax rolls of Maricopa County Assessor's Office indicate that the current full cash value of the Assessed Property is approximately $30,000,000 for Lot No. 1, $25,285,800 for Lot No. 2 and $733,200 for Lot No. 3. There are no overlapping Assessment Districts and all lots are current in their assessment payments. - N/A (2) Principal only. Assessments Receivable on Balance Sheet-Governmental Funds may include delinquent administrative charges, interest and penalties. 147 $ N/A (1) Does not include penalties or administrative fees which are included in special assessment revenues on the Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds. Source: City financial records and reports - Table XXV CITY OF PEORIA, ARIZONA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Population (1) 155,326 156,354 157,770 160,431 164,212 168,192 172,263 175,961 190,985 194,517 194,517 Personal Income (in thousands) (2) 5,773,623 5,942,390 6,112,799 6,392,534 6,701,656 7,100,730 7,596,109 7,759,176 8,809,183 9,349,460 (7) 10,085,901 Per Capita Personal Income (3) 37,171 38,006 38,745 39,846 40,811 42,218 44,096 46,125 48,065 51,851 NA Median Age (4) 39.4 38.3 40.2 40.5 36.9 41.6 41.0 39.5 38.2 38.5 42.7 Public School Enrollment (5) 35,095 35,231 34,952 34,897 34,966 34,912 35,388 35,490 35,784 34,030 34,495 Unemployment Rate (6) 7.1% 6.8% 6.0% 5.0% 4.9% 4.2% 4.0% 4.3% 9.3% 6.6% 3.4% (1) City population for the most current year based on Maricopa Association of Government (MAG) estimates and prior year data is from the U.S. Census. (2) Peoria personal income calculated by multiplying Phoenix Metropolitan Statistical Area (MSA) per capita income times Peoria population divided by 1,000. Current year calculated by multiplying current year population by prior year per capital personal income. (3) Bureau of Economic Analysis - Phoenix Metropolitan Statista Area (MSA) (4) US Census Bureau - American Community Surveys (5) Arizona Department of Education (6) US Bureau of Labor Statistics (7) Population for fiscal year 2022 was taken from the most recent U.S. Census estimates for fiscal year 2021 because it is the most updated and accurate population count as of fiscal year 2022. 148 Table XXVI CITY OF PEORIA, ARIZONA MAJOR EMPLOYERS WITHIN THE CITY CURRENT YEAR AND NINE YEARS AGO 2022 Employer Peoria Unified School District City of Peoria Walmart (Multiple Locations) Fry's Food Stores (Multiple Locations) Taronis Fuels Target Stores Inc (Multiple Locations) McDonalds (Multiple Locations) Banner Health Plaza Del Rio Campus/Freedom Plaza & Care Center Home Depot (Multiple Locations) The Younger Brothers Group Inc Immanuel Campus of Care The Antigua Group Inc Northern Pipeline Forum at Desert Harbor Total Total City Employment # of Employees 4,364 1,349 1,030 880 450 390 330 300 340 330 Rank 1 2 3 4 5 6 7 8 9 10 10,083 Percentage of Total City Employment 4.7% 1.5% 1.1% 0.9% 0.5% 0.4% 0.4% 0.3% 0.4% 0.4% 10.9% 2013 # of Employees 3,008 1,132 527 588 340 297 284 170 6,684 92,638 75,258 Sources: City of Peoria Economic Development Department, Maricopa Association of Governments Employer Database, and the U.S. Bureau of Labor Statistics. 149 Rank 1 2 3 4 6 7 8 9 10 Percentage of Total City Employment 4.0% 1.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.7% 0.0% 0.8% 0.5% 0.4% 0.4% 0.2% 8.9% CITY OF PEORIA, ARIZONA AUTHORIZED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Table XXVII Full-time Equivalent Employees as of June 30, 2022 General Government City Manager Office of Communications Human Resources Attorney City Clerk Court Economic Development*** Finance & Budget Culture & Recreation Police Fire Community Development Development and Engineering** Highways & Streets Public Works Human Services Water Utility Wastewater Utility Solid Waste Utility Information Technology Stadium Total FTE* Note: 2013 2014 2015 2016 16.00 8.00 17.50 26.00 7.00 20.90 26.00 80.75 111.97 288.00 167.50 12.50 33.25 38.80 57.95 7.50 55.50 29.50 45.00 39.00 16.50 16.00 8.00 17.50 26.00 7.00 20.90 28.00 80.00 115.97 292.00 168.50 13.50 33.25 38.80 57.95 7.50 55.50 29.50 45.50 40.00 17.50 16.00 8.00 17.50 26.00 7.00 20.90 30.50 80.00 115.97 292.00 168.50 14.00 33.25 38.80 57.95 7.50 55.50 29.50 45.50 40.00 17.50 16.00 9.00 19.00 26.00 7.00 20.90 31.50 79.00 119.22 295.00 175.50 15.00 33.25 38.80 57.95 7.50 55.50 31.50 49.50 41.00 17.50 18.00 9.00 19.00 26.00 7.00 20.90 8.00 79.00 121.47 299.00 194.50 16.00 65.00 38.80 57.95 7.50 58.50 32.50 53.25 42.00 18.50 18.00 9.00 20.00 26.00 7.00 20.90 8.00 80.00 121.20 306.00 194.50 16.00 65.00 38.80 57.95 7.50 58.50 32.50 56.25 42.00 18.50 18.00 9.00 20.50 26.00 7.00 20.90 7.00 79.00 145.78 303.00 212.00 12.92 67.25 38.80 58.95 9.50 61.50 33.50 58.25 42.00 18.50 19.00 10.00 21.50 26.00 7.00 20.90 7.00 78.00 155.80 304.00 220.00 13.00 67.00 39.80 58.95 9.50 63.50 34.50 61.00 43.00 18.50 19.00 10.00 21.50 26.00 6.00 20.90 7.00 78.00 155.80 305.00 220.00 13.00 67.00 39.80 58.95 9.50 69.50 35.50 61.00 45.00 18.50 19.00 10.00 21.50 27.00 6.00 21.45 7.00 79.00 188.10 308.00 236.00 13.00 70.00 40.8 57.95 10.50 72.50 35.50 62.00 45.00 17.96 1,105.12 1,118.87 1,121.87 1,145.62 1,191.87 1,203.60 1,249.35 1,277.95 1,286.95 1,348.26 Counts do include part-time non-seasonal benefitted employees. *The Total FTE presentation for years 2008-2013 was updated to reflect a calculation correction. **The presentation was updated in fiscal year 2017 to reflect the renaming of departments. Source: City budget office 150 2017 2018 2019 2020 2021 2022 Governmental Activities: General Government Registered Voters in City Voter Participation (last election) Culture & Recreation Recreation Participants New Recreation Accounts Special Event Participants Police Calls for Service Avg Response Time (minutes) Fire Number of Incidents Avg Response Time (minutes) Development Services Building Permits Issued Value of Building Permits (millions $) Highways & Streets Asphalt Used (in tons) Centerline Miles Swept Miles Inspected Public Works Number of Vehicle Work Orders Human Services Number of Dial-a-Ride users Number of Annual Trips Business-type Activities Water Utility (E) Annual Consumption (000's gal) Wastewater Utility Wastewater Treated (billion gal) Solid Waste Utility Residential Tonnage Processed Commercial Tonnage Processed Recycle Tonnage Processed Stadium Spring Training Attendance Sporting Rentals Days Non-Sporting Rentals Days CITY OF PEORIA, ARIZONA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 2015 2016 2017 2018 2013 2014 87,432 23.7% 89,604 24.9% 87,541 31.3%(F) 93,916 N/A 101,881 76.7% 134,045 5,396 73,800 122,318 5,533 74,950 120,232 5,483 79,550 104,544 5,166 71,300 54,159 4.52 (C) 52,193 4.39 (C) 47,612 4.55 (C) 18,719 5.14 19,312 5.30 3,625(D) $169.0 Table XXVIII 2019 2020 2021 2022 102,460 N/A 109,073 36.48% 113,282 41.33% 124,458 83.87% 118,397 N/A 109,220 5,396 102,938 112,802 5,029 95,822 116,696 4,344 88,348 64,170 2,255 107,120 11,976 4,325 5,706 18,672 6,610 102,775 53,256 5.13 (C) 55,136 5.40 (C) 53,574 5.33 (C) 51,127 5.28 51,081 5.23 51162 5.36 55197 5.47 20,873 5.24 23,824 5.38 23,726 5:16(A) 24,932 5:24(A) 23,752 5:25(A) 25,066 5:47(A) 25,559 5:51(A) 24,859 5:36(A) 3,993(D) $188.3 4,534(D) $221.1 5,818(D) $311.9 6,336(D) $393.3 6,231(D) $355.0 5,701 (D) $382.1 5,795 (D) $307.7 6,764 (D) $298.3 6,151 $313.0 3,122 6,143 2,227 5,660 2,302 4,968 1,289 4,118 1,930 6,199 1,566 5,052 1,394 6,405 2,189 7,205 2496 8555 1174 8363 187 205 211 296 1,551(G) 0(G) 0(G) 867 0(G) 0(G) 5,899 5,464 5,493 5,558 5,732 5,416 5,592 5,385 4957 4821 830 32,101 836 33,308 850 30,212 749 30,756 585 27,241 599 28,033 599 22,954 387 22,257 399 15,987 425 21,878 8,405,929 8,662,507 8,090,136 8,650,664 9,488,059 9,950,302 9,630,290 9,660,709 10,661,260 10,197,595 3.64 3.69 3.74 3.78 3.87 3.98 4.13 4.21 4.29 4.36 47,717 20,561 15,184 47,987 21,176 15,155 51,666 25,227 16,077 52,593 23,309 16,447 54,967 20,895 16,698 55,757 20,974 17,109 59,819 16,748 16,859 64,283 19,165 16,047 67,087 18,066 17,729 68,856 17,691 17,417 196,881 290 143 192,513 322 146 238,847 297 151 240,111 339 204 227,646 333 210 201,272 335 196 180,190 340 182 93,932 245 133 51,067 255 105 78,928 207 112 (G) Notes: * Information is not available for these fiscal years. (A) Decrease in Fire Average Response time reflects change in calculation. Beginning in FY17, average response time is calculated 1st unit on scene and only includes code 3 (emergency calls). (B) Changed from lane miles to center line miles in FY11 to be consistent with other highway measurements. Decrease in Police Average Response time reflects calculation change. New Calculation=Dispatch to Arrival. Previous calculation=Call for Service to (D) Beginning FY13, this number includes all permits issued including tenant improvements, C of O permits, and spec suite permits. (E) Beginning in FY15, Average Gallons/Household/Year is no longer being presented. (F) Percentage reflects voter participation in March 2015 Special General Election for Mesquite District Council. Eligible registered voters = 16,582. (G) Starting In FY17 an electronic survey of every road is completed every third year. (H) FY2020 number of participants are considerably lower than prior fiscal years because COVID-19 caused programmatic changes and event cancellations. (C) Source: Various City Departments 151 Table XXIX CITY OF PEORIA, ARIZONA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2013 Governmental Activities: General Government Annexed Area (square miles) 179.1 Culture & Recreation # of Neighborhood Parks 33 Total Neighborhood Park Acreage 294 # of Community Parks 1 Total Community Park Acreage 52 Public Safety Police Stations 2 Marked Patrol Vehicles (units) 86 Fire Stations (full-time / part-time) 7/1 Number of Fire Engines (B) 7 Number of Ladder Trucks 2 Highways & Streets Streets (miles maintained) 622 Crack Seal Application (linear feet) * Surface Treatments (lane miles) * Public Works Street Lights 15,006 Vehicles in Fleet 714 Water Services Number of Pump Stations * Number of Lift Stations * Number of Wells * Number of Reservoirs * Human Services Dial-a-Ride Buses 7 Business-type Activities Water Utility Number of Water Accounts 49,516 Storage Capacity (million gal) 42.0 Wastewater Utility Number of Wastewater Accounts 52,674 Treatment Capacity million gallon per day (MGD) 16.25 Solid Waste Utility Number of Solid Waste Accounts 50,727 Stadium Number of Practice Fields 13 Number of Clubhouses 3 Total Complex Acreage (C) 125 2014 2015 Fiscal Year 2016 2017 2018 2019 2020 2021 2022 179.1 179.1 179.1 179.1 179.1 179.1 179.1 179.1 179.1 33 294 2 139 34 305 2 139 34 301 2 139 34 301 2 139 34 301 2 139 34 301 2 139 34 301 2 139 35 311 3 225 36 314 3 225 2 88 2 88 2 90 2 91 2 92 2 98 2 105 2 106 2 108 7/1 7 2 7/1 7 2 8/0 7 2 8/0 7 2 8/0 7 2 8/0 7 2 8/0 7 2 8/0 7 2 8/0 8 2 1452(A) 1,165,460 88 1505(A) 1,156,722 96 1,534 2,144,476 60 1,551 2,007,173 99 1,559 3,381,554 153 1,579 2,447,248 136(D) 1,596 3,670,620 119 1,604 3,434,915 120 1,635 3,587,669 145 14,786 738 14,945 732 15,565 778 15,722 795 15,973 840 16,152 842 16,493 878 16,896 953 17,235 969 25 15 38 30 25 14 40 30 30 13 46 33 30 13 47 33 30 13 47 33 27 11 24 22 30 13 47 33 27 14 47 34 27 14 47 34 6 5 5 5 5 6 4 6 6 50,399 42.0 51,405 42.0 55,558 42.0 57,011 42.0 58,061 42.0 59,185 42.0 60,705 42.0 62,083 42.0 63,357 42.0 53,548 16.25 54,599 16.25 56,235 16.25 57,909 16.25 59,499 16.25 60,913 16.25 62,617 16.25 63,924 16.25 65,169 16.25 51,609 52,640 54,262 55,828 57,452 58,816 60,123 61,332 62,575 13 3 125 13 3 125 13 3 125 13 3 125 13 3 125 13 3 125 13 3 125 13 3 125 13 3 125 Notes: * Information not tracked during this fiscal year. (A) Measurement changed from center-lane miles to lane miles in FY14. (B) Number of fire engines reported in FY13, FY14, FY15 and FY16 was restated to exclude a bush truck previously reported as a fire engine. (C) Number updated in FY17 for all years presented to reflect land owned by the City which was used to construct office space, and thus not part of Stadium complex acreage. (D) Number of Surface treatments for FY19 was restated due to query error in FY19 that was corrected in FY20. Source: Various City Departments 152 Continuing Disclosures Continuing Disclosure Section SEC Rule 15c2-12, as amended, requires the City to provide Continuing Disclosure Annual Reports that include audited financial statements and other financial information for the benefit of owners and holders of bond obligations issued by the City. The Continuing Disclosure Annual Report shall contain or incorporate by reference certain information as set forth in the Continuing Disclosure Agreements and Undertakings executed by the City with the issuance of its municipal bond obligations. Information in this section is provided solely pursuant to the requirements of SEC Rule 15c2-12 and Continuing Disclosure Agreements and Undertakings and include financial information that is not required for fair presentation in conformity with accounting principles generally accepted in the United States of America and is therefore unaudited and not covered by the auditor’s opinion. Annual continuing disclosure information is filed with the Municipal Securities Rulemaking Board (MSRB) for public access via their Electronic Municipal Market Access (EMMA) system at www.emma.msrb.org. 153 Continuing Disclosures Annual Report For the Year Ended June 30, 2022 Audited Financial Statements The City’s Annual Comprehensive Financial Report for fiscal year ended June 30, 2022, is included as part of this submittal. Other Financial Information Information concerning the outstanding debt by type of bond can be found in the Notes to the Financial Statements, Note 7 Long Term Debt. Other financial information required per the City’s Continuing Disclosure Agreements and Undertakings for each type of bond obligation is incorporated by reference as follows: Statistical Section Page General Obligation Bonds (CUSIP 712838) Assessed values by property classification Table VIII 129 Comparison of assessed value to full cash value Table VIII 129 Comparative assessed values Table IX 130 Direct and overlapping assessed values Direct and overlapping tax rates Table XVII Table X 140 131 Property tax levies and collections Table XIII 134 Direct and overlapping general obligation bonds Direct general obligation debt ratios Table XVII Table XVI 140 139 Legal debt margin and unused borrowing capacity Table XX 143 Net revenues and debt service coverage Table XXII 145 Number of utility service connections Table XIVa 135 Ten largest water users Table XIVc 137 Municipal Development Authority Bonds (CUSIP 71284R and 71285A) Excise tax and state shared revenues and debt service coverage Table XXI 144 Privilege and use tax rates by category Table VI 127 Annual debt service requirements Table XXI 144 Legal debt margin and unused borrowing capacity Table XX 143 Assessed values by property classification Table VIII 129 Property tax levies and collections Table XIII 134 Special assessment collections Table XXIV 147 Water and Wastewater Revenue Bonds (CUSIP 712851) Improvement District Bonds (CUSIP 712844) 154 City of Peoria FINANCE AND BUDGET DEPARTMENT 8401 West Monroe Street Peoria, Arizona 85345 www.peoriaaz.gov