City of Peoria, Arizona FY25 Annual Comprehensive Financial Report (ACFR) Fiscal Year Ended June 30, 2025 Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2025 City of Peoria, Arizona City Council Jason Beck, Mayor Jennifer Crawford, Vice Mayor Michael Finn, Mayor Pro Temp Matthew Bullock, Councilmember Denette Dunn, Councilmember Jon Edwards, Councilmember Rick Stokes, Councilmember Administrative Staff Henry Darwin, City Manager Kevin Burke, Deputy City Manager Travis Cutright, Deputy City Manager Mike Faust, Deputy City Manager Prepared By Finance Department Sean Kindell, Chief Financial Officer Peter Christensen, 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 O Open R Responsive 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. 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, 2025 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 xiv xv xvi xvii 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 Highway User Revenue Fund Transportation Sales Tax Fund Other Grants Fund 22 25 26 29 30 32 33 34 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, 2025 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 89 90 92 94 96 D. SUPPLEMENTARY INFORMATION - COMBINING FUND FINANCIAL STATEMENTS AND BUDGETARY COMPARISON SCHEDULES Major Governmental Funds Other Than General Fund and Special Revenue Funds Budgetary Comparison Schedules – Major Debt Service Fund and Major Capital Projects Fund Half Cent Sales Tax Fund General Obligation Bond Debt Service Fund Development Fee Fund Non-Bond Capital Projects Fund General Obligation Bond Capital Projects Fund 100 102 103 104 105 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 Smart and Safe Arizona 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 109 110 112 113 114 115 116 117 Internal Service Funds Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Combining Statement of Cash Flows 119 120 121 Fiduciary Funds Combining Statement of Net Position Combining Statement of Changes in Fiduciary Net Position ii 123 124 CITY OF PEORIA, ARIZONA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2025 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 127 128 130 131 132 133 134 135 136 137 138 139 140 141 143 XVI 145 XVII 146 XVIII 147 XIX XX 148 149 XXI XXII XXIII XXIV XXV XXVI 150 151 152 153 154 155 XXVII XXVIII XXIX 156 157 158 IV. CONTINUING DISCLOSURES Continuing Disclosures Annual Report 160 iii iv December 22, 2025 Honorable Mayor, City Council, City Manager and Citizens of Peoria, Arizona: We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) for the City of Peoria, Arizona (the City) for the fiscal year ended June 30, 2025. This report was prepared by the Financial Services Division of the Finance Department. The ACFR represents management’s report of the City’s complete financial results to its governing body, constituents, legislative and oversight bodies, investors, and creditors. Copies of this report will be sent to elected officials, management personnel, bond rating agencies, Nationally Recognized Municipal Securities Information Repositories, and other agencies that have expressed interest in the City’s financial matters. Copies of this financial report will also be placed in the City’s libraries, as well as on the City’s website, for access by the public. The Management’s Discussion and Analysis presented on pages 5-18 has a different focus and purpose than this transmittal letter and should be read in conjunction with this transmittal. THE FINANCIAL REPORTING ENTITY This ACFR includes financial statements on both a government-wide and fund basis for the City as the primary government, as well as its component units. Component units are separate legal entities included in the reporting entity due to the significance of their financial or operational relationship with the City. Criteria used by the City for inclusion of activities in preparing its financial statements are in conformity with GASB Statement No.14, The Financial Reporting Entity, as amended. Blended component units, although legally separate entities, are, in substance, part of the primary government’s operations and are included as part of the primary government. Accordingly, the financial reporting entity consists of the City and twelve blended component units, the City of Peoria Municipal Development Authority, Inc., the Vistancia Community Facilities District, the Vistancia West Community Facilities District, the Vistancia North Community Facilities District, the Mystic at Lake Pleasant Heights Community Facilities District, the five Saddleback Community Facilities Districts, the City of Peoria Employee Benefits Trust and the City of Peoria Workers’ Compensation Trust as discussed further in Note 1.A of the notes to the financial statements. The City, chartered in 1954, has a Council-Manager form of government with the City Council consisting of the Mayor and six Council Members. Pursuant to an amendment to the City Charter approved by the voters in 1997, the Mayor is elected at-large for a four-year term. Council members are elected, by district, for four-year terms. The City Council is vested with policy and legislative authority and is responsible for passing ordinances; adopting the budget; appointing committee, commission, and board members; and appointing the positions of City Manager, City Attorney, and Judge. The City Manager is responsible for carrying out the policies and ordinances of the City Council, as well as overseeing the day-to-day operations of the City. The City encompasses approximately 179 square miles in the northcentral portion of Maricopa County, and is one of several major cities comprising the greater Phoenix metropolitan area. Between the 2010 census and the 2020 census, Peoria’s population increased by 24.0%, from 154,065 in 2010 to 190,985 v in 2020. The most recent estimate of Peoria’s population is 207,499. Peoria is known for its high quality of life with safe, well-planned neighborhoods, a diversity of housing options, excellent school districts, extensive park system and recreation programs. An expanded metropolitan freeway system allows Peoria residents to commute effectively to other cities in the Phoenix metropolitan area, giving residents access to the metropolitan area’s diverse array of employment opportunities. The City provides a full range of municipal services, including police, fire and emergency medical services, water, sewer and solid waste services, street construction and maintenance, recreational and cultural events, library services, public transportation, planning and zoning services, and general administrative services. In addition, the City offers a wide range of community facilities including two community centers, three swimming pools, two libraries, and 37 neighborhood parks encompassing 314 acres. The Peoria Sports Complex—operated by the City—was the nation’s first two-team baseball spring training facility and the spring training home of the Seattle Mariners and San Diego Padres. The City opened its first large community park, Rio Vista Community Park, in the southern part of the City in fiscal year 2004. This 52 acre facility has athletic fields, playgrounds, ramadas, an urban lake, skate park and other amenities for the citizens’ enjoyment. The City’s second community park, Pioneer Community Park was completed in fiscal year 2014 and includes ball fields, multipurpose fields, a dog park, fishing lake and other amenities. The third community park, Paloma Community Park, opened in October, 2020. Similar to the Rio Vista and Pioneer parks, the Paloma Community Park offers residents a wide range of recreational activities including a huge fishing lake, large multipurpose fields, pickleball courts and other amenities. The City also has a performing arts center with a 250-seat main auditorium, 80-seat black box theater, and classroom and administrative space in the downtown area. Another attraction of the City is Lake Pleasant, in northern Peoria’s Lake Pleasant Regional Park. This 10,000 acre lake is the second largest lake in Arizona, providing residents and visitors with boating, fishing, camping and other outdoor recreation activities. LOCAL ECONOMIC CONDITION AND OUTLOOK Peoria’s population growth continues to be strong with an estimated increase of 16,514 or 8.6% since the 2020 census. Maricopa County had the third largest numeric growth for counties with 57,471 new residents between July 1, 2023 and July 1, 2024. International immigration was a large driver of the increase for Maricopa County. Peoria is part of the Phoenix Metropolitan Area which has seen strong job growth in recent years. The construction of the $12 billion Taiwan Semiconductor Manufacturing Company (TSMC) on the outskirts of Peoria is expected to increase in-migration both domestically and internationally to the Peoria area in the next several years. This is further expected to have a multiplier effect as TSMC suppliers also relocate or expand to this region as evidenced by the semiconductor packaging and testing company Amkor who will be investing $7 billion and hiring 3,000 employees in Peoria in the next few years. The City issued 1037 new single family residential building permits in fiscal year 2025, a decrease of 5.8% versus the prior year. Per the Case-Schiller Home Price index, house prices remained steady from June 2024 to June 2025 in the Phoenix metropolitan area. However, house prices dropped 1.8% between June 2025 and September 2025. The City’s total property full cash value, which lags the market, decreased by 3.2% from $41.2 billion in 2024-25 to $39.9 billion in 2025-26. The decrease includes both property value changes and growth. Limited property values, which are the basis for the City’s tax levies, grew 6.2% from 2024-25 to 2025-26. By state law, limited property value on existing properties cannot grow by more than 5% per year and cannot exceed the full cash value. For 2025-26 the limited value is 56.3% of the full cash value leaving considerable room for growth even if full cash values stay stagnant or decrease somewhat. The unemployment rate in Peoria at August 2025 was 4.1% matching Arizona and outperforming the U.S. rate, 4.3%. The City’s sales and use tax collections in fiscal year 2025 totaled $140.8 million, a 5.0% increase from the $134.1 million in the prior year. vi Economic Outlook While we have seen a slowing of the economy, both nationally and in Arizona, it remains resilient. Most economists agree that if a recession occurs, it will be a mild one. Despite the loss of residential rental sales tax in January 2025, local sales tax collections in fiscal year 2025 were 4.4% higher than in fiscal year 2024. As noted above, although home values have decreased in recent months, the City expects to continue to see solid growth in its property tax base. State shared income tax, which lags actual tax collections by two years, will see a reduction in fiscal year 2026 as the City sees the full impact of the State’s flat tax, but should see growth in the following years. Peoria’s conservative budgeting practices have positioned the City well for the continued slow growth in the economy that we expect to see. Additionally, Peoria’s economic development emphasis has put the City in position to outperform both the regional and national economies in the next several years. MAJOR PROJECTS AND INITIATIVES The Peoria Mayor and City Council have adopted three policy priorities as of January 2023. These are Water Security, Public Safety and Economic Development. In addition, the City Manager adopted the administrative priority of Innovative Government. WATER SECURITY Colorado River Water Reductions The Colorado River Basin is currently in a Tier 1 shortage for calendar year 2025, calendar year 2026 will also be in a Tier 1 shortage. Under a Tier 1 shortage, the City will not have any reductions to the water allocation. The City currently uses approximately 60-65% of its annual allocation from the Colorado River each year to meet customer demands. Storing the remaining allocation over the years has resulted in a total water storage volume equal to more than five years supply of water assuming no water is received from the Colorado River or any other source. This smart water planning has allowed Peoria to comfortably meet its water obligations as well as service entitled new developments. In an effort to minimize the drought impact on the Colorado River Basin the City participated in a System Conservation Implementation Agreement which allows the City to leave a portion of its water allocation behind Hoover Dam in Lake Mead in exchange for compensation. The City agreed to conserve up to 7,200 acre feet (21.1% of the annual allocation) per year for the years 2023, 2024 and 2025 in exchange for compensation of $400 per acre foot. New Wellfield at Lake Pleasant Parkway and the Central Arizona Project canal The City is taking steps to mitigate the impact of potential future shortages due to drought conditions on the Colorado River Basin. One way to do this is to prepare the infrastructure to utilize the water that has been stored for delivery to customers. To this end, the City is continuing the construction of a wellfield and pumping station near Lake Pleasant Parkway and the Central Arizona Project canal. This project will assure residents and businesses in North Peoria of continued water supply in the event of curtailments or outages in Colorado River water supply. Expansion of Reclaimed Water Service In October 2024 the City completed a 7.6 mile pipeline from the Beardsley Reclamation Facility to Paloma Park. This allowed the City to replace 39 million gallons of potable water that was used for lake maintenance and irrigation with reclaimed water. Not only does this result in annual savings of more than $150 thousand due to the lower cost of reclaimed water, it preserves the potable water for human consumption needs. vii Large Water Ordinance To ensure the City of Peoria can supply new growth with a renewable water supply, city management has developed an ordinance for non-residential customers (e.g., commercial, institutional, industrial) that use a relatively high volume of water to ensure best practices are in place for minimizing consumption, maximizing recycling, and reducing water loss. The ordinance requires future customers, and existing customers seeking to significantly increase their water use, to apply for a city-issued permit before beginning or expanding water service. Such users include:    Customers who use more than 50,000 gallons per day on average over a one-year period; or, Customers who use more than 100,000 gallons in any 24-hour period; or, Those customers that are classified as a water intensive user Treatment Facility Expansions The City is completing the expansion of the Beardsley Water Reclamation Facility which will take treatment capability from 4 million gallons per day to 6 million gallons per day. The fiscal year 2026 ten year capital improvement program includes over $90 million for additional expansions at the Beardsley and Jomax Water Reclamation Facilities. These expansions will provide the capacity needed as the City continues to grow. Turf Reduction The City has committed to a turf reduction program and is removing non-programmable turf (on hill sides or sloped areas) from City parks thereby reducing the water requirements without reducing the functionality of the parks. The project is expected to save the City about 30 million gallons of water per year. PUBLIC SAFETY New Facilities The fiscal year 2026 ten year CIP plan includes over $70 million for construction of new public safety facilities including two new fire stations and a permanent structure for Station 9, currently at Lake Pleasant. This also includes the funding needed to transform the newly acquired police multi-purpose building and prepare it for evidence storage, vehicle impound storage, forensic analysis and processing of vehicles, storage of specialty vehicles, and tactical training. Pension Liabilities Reduction The City of Peoria made a conscious effort to reduce the unfunded liabilities associated with both its Police and Fire pension plans. Both plans are governed and managed by the Arizona Public Safety Personnel Retirement System (PSPRS). Consistent with the city’s Pension Funding Policy, the Mayor and City Council approved a lump sum payment in FY24 above the Annual Required Contribution (ARC) of $3 million. Under the Pension Funding Policy the City has kept its public safety pension contribution rates the same as in fiscal year 2022 despite the ARC being lowered due to additional payments being made Although no lump sum payments were made in fiscal year 2025, the additional contributions made through the freezing of the contribution rate and strong investment returns from the pension system are expected to bring the funded percentage of the plan closer to the 100% goal. viii Police and Fire Aviation Unit On August 20, 2024 the City celebrated the ribbon cutting for the Police and Fire Aviation unit as the City accepted delivery of its first public safety helicopter. The Aviation Unit will expand law enforcement capabilities, search and rescue capabilities, and firefighting services, and improve response times throughout the city. The City is currently seeking grant funding opportunities aimed at securing a second helicopter for the aviation unit to reduce the impact of downtime related to scheduled maintenance on the aircraft. Real Time Crime Center On March 24, 2025 the City celebrated the opening of the Real Time Crime Center with a dedication and ribbon cutting ceremony. The Peoria RTCC has quickly achieved national recognition for its innovation, collaboration, and leadership in advancing real-time policing. At the 2025 National Real Time Crime Center Association (NRTCCA) Annual Conference and Awards in Atlanta, Georgia, Peoria’s RTCC received the following awards:    DICE Development Award - honoring the RTCC’s rapid growth, technological advancement, and integration of best practices. DICE Collaboration Award - recognizing the Center’s groundbreaking partnerships across public safety disciplines, technology providers, and regional agencies. National RTCC Supervisor of the Year - awarded to Sergeant Michael Lesher, who has led the RTCC since it opened in March 2025. Despite being in operation for only seven months, Peoria’s RTCC has achieved milestones that rival centers in place for years. ECONOMIC DEVELOPMENT Peoria Innovation Core Following the city’s successful $46.7 million bid for 834.5 acres of Arizona State Trust Land on August 27, 2025, the City Council approved a series of agreements that will jump-start development in Core 2 of the Peoria Innovation Core (PIC). The first project to move forward on the new site is Amkor Technology’s state-of-the-art advanced semiconductor packaging and test facility. The Council-approved land exchange agreement and development agreement amendment allows Amkor to relocate its planned facility from 56 acres in FIVE NORTH at VISTANCIA, to a 104-acre site in Core 2. On October 6, 2025, Amkor Technology broke ground on the new $7 billion Peoria campus which will feature more than 750,000 square feet of cleanroom manufacturing space and is expected to create up to 3,000 high-quality jobs in engineering, operations, and advanced manufacturing. Downtown Redevelopment The City of Peoria has dedicated over $15 million dollars to renovate its historic downtown. Over the last decade, the City has acquired multiple properties, demolished dilapidated buildings and/or remediated contaminated sites. Caldwell County BBQ and the Jefferson House will bring new dining and shopping experiences to downtown. Along with bringing in new restaurants and shops the City will also create pedestrian amenities, wider sidewalks, landscaping, lighting, patios, and seating as downtown becomes a “place to be” destination. ix INNOVATIVE GOVERNMENT Replacement of the Enterprise Resource Planning (ERP) system The City is replacing the ERP system that has been in use since the late 1990’s. After a thorough procurement and analysis, the City has signed on with Workday to provide the core financial and human resource system. Workday is a cloud based solution that will provide the City with greater flexibility, efficiency and reporting capabilities. The core financial system went live on October 1, 2025 and the human capital management system will go live in the spring of 2026. Performance Management City Manager Darwin is continuing his emphasis on data driven decision making within the City. A centralized dashboard consisting of performance measures from every department is reviewed monthly with the department directors and this process is being pushed down through the organization as directors have adopted this approach within their departments. City Manager Darwin has also implemented several accountability meetings that focus on specific areas of emphasis and promote a consistent messaging around the City’s key strategy deployments. BOND RATING 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. The Excise Tax and State Shared Revenue Obligations received a AAA rating from S&P. For the water and sewer revenue bonds, the ratings are “AA+” from Standard & Poor’s, “Aa2” from Moody’s and “AA+” from Fitch. FINANCIAL CONTROLS Internal Controls The management of the City of Peoria is responsible for establishing and maintaining a system of internal controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from unauthorized use or disposition, and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the valuation of costs and benefits requires estimates and judgments by management. The system of internal control is subject to periodic evaluation by management and is also considered by the independent auditors in connection with the annual audit of the City’s financial statements. All internal control evaluations occur within the above framework. The City's internal accounting controls are considered to adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Controls The City, like all cities in the State of Arizona, is subject to numerous budget and related legal requirements. Article IX, Section 20 (1) of the Arizona Constitution sets limits on the City's legal budget capacity. At a general election held in March 2003, the citizens of Peoria approved a permanent adjustment of the expenditure base from the original 1979-80 base of $3,247,857 to a new base of $18,247,857. The permanent adjustment eliminated the need for voter approval every four years. After adjustment for inflation and population growth, the City’s expenditure limitation for fiscal year 2024-25 was $1,289,660,507. The City may utilize the additional expenditure authority for any local budgetary purposes. x The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated operating budget approved by the Mayor and Council. Activities of the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, and internal service funds are included in the annual appropriated budget. The legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is the total budget, as adopted by the City Council. The City additionally exercises management control and oversight of the budget at the department level within each fund. In addition to maintaining budgetary control via a formal appropriation, the City maintains an encumbrance accounting system. Encumbrances are made against appropriations upon the issuance of a purchase order. Encumbered appropriations lapse at fiscal year-end and are rebudgeted as needed in the next fiscal year. Financial Policies The City has an important responsibility to its citizens to carefully account for public funds, to manage its finances wisely, and to plan for the adequate funding of services desired by the public, including the provision and maintenance of public facilities. The City needs to ensure that it is capable of adequately funding and providing those government services desired by the community. Ultimately, the City’s reputation and success depends on the public’s awareness and acceptability of the management and delivery of these services. The City operates under a comprehensive set of financial policies adopted by Council. The Principles of Sound Financial Management establishes guidelines for the City’s overall fiscal planning and management. These principles are intended to foster and support the continued financial strength and stability of the City of Peoria as reflected in its financial goals. The City’s financial goals are broad, fairly timeless statements of the financial position the City seeks to attain:     To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar. To maintain an adequate financial base to sustain a sufficient level of municipal services, thereby preserving the quality of life in the City of Peoria. To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the City's residents. To maintain a high bond credit rating to ensure the City’s access to the bond markets and to provide assurance to the City's taxpayers that the City government is well managed and financially sound. These policies establish minimum and recommended fund balance/net position and reserves, as well as establishing policies on the use of one-time revenues (to be used for one-time expenditures), fiscal planning and budgeting, expenditure control, capital improvement program, cash management, debt management, and economic development. Long Term Financial Planning The City annually updates a five‐year long‐range forecast, incorporating both projected revenues and expenditures for the City’s major operating funds. The five‐year revenue forecast only includes revenues that are anticipated to be sustainable over the five‐year period. Expenditure projections include anticipated operating impacts of the adopted capital improvement program. Additionally, the City maintains a 10-year Capital Improvement Program that the City Manager submits annually for review by the City Council. The program is updated annually and includes the cost of construction and operating expenditures. No capital improvement project will be authorized or awarded until the funding sources have been established to finance the project. When current revenues or resources are available for Capital Improvement Projects, consideration will be given first to those capital assets with the shortest useful life, and for assets whose nature make them comparatively more difficult to finance with bonds or lease financing. xi OTHER INFORMATION Responsibility for the accuracy of the presented data and the completeness and fairness of the presentations in this ACFR, including all disclosures, rests with the management of the City. The City has established and maintains a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to allow the compilation of sufficient reliable information for the preparation of financial statements. We believe the data, as presented in this report, is accurate in all material respects and is presented in a manner that fairly sets forth the financial position and results of operations of the City on both a government-wide and fund basis. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity and financial stability have been included. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for local governments as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA). Independent Audit The basic financial statements and related notes have been audited by an independent firm of certified public accountants, Heinfield, Meech & Co., P.C., whose report is included herein. The audit satisfies Article VI, Section 7, of the City Charter, which requires an annual audit of all accounts of the City by an independent certified public accountant. As stated in the independent auditors’ report, the goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Peoria, Arizona, for the fiscal year ended June 30, 2025, are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the financial statements of the City for the fiscal year ended June 30, 2025, are fairly presented, in all material respects, in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. Additionally, the City is required to have an independent audit (“Single Audit”) of federal financial assistance received by the City directly from federal agencies, or passed through to the City by the State of Arizona or other governmental entities during the fiscal year. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the government’s internal controls and compliance with legal requirements having a direct and material impact on major programs, with special emphasis on internal controls and compliance requirements involving the administration of major federal awards. There were no instances of material weakness or significant deficiencies reported related to the financial statement audit. Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. This is the 40th consecutive year the City of Peoria has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. That report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement program's requirements. As such, we are submitting this report to the GFOA to determine its eligibility for a certificate. xii Acknowledgments The preparation of this Annual Comprehensive Financial Report could not have been accomplished without the efficient and dedicated services of the staff of the Finance Department, especially the Financial Services Division. We want to give special recognition to the City’s accounting team for their diligent efforts and superior contributions to this report. We also wish to thank the members of the City Council for their interest and support in planning and conducting the financial affairs of the City in a responsible and progressive manner. Sincerely, Sean Kindell Chief Financial Officer xiii xiv City of Peoria Organizational Chart Peoria Citizens Citizens Advisory Boards and Commissions Presiding Judge John Tatz Municipal Court Mayor and City Council Henry Darwin City Manager Emily Jurmu City Attorney Kris Dalmolin Information Technology Director Austin Roe Mayor’s Chief of Staff Brenda Urias Assistant to the City Manager Kevin Burke Deputy City Manager Travis Cutright Deputy City Manager Mike Faust Deputy City Manager Marylou Stephens Arts, Cultural and Library Services Director Agnes Goodwine City Clerk Maria Laughner Economic Development Director Sean Kindell Finance and Budget Director Gary Bernard Fire Chief Thomas Intreri Police Chief Chris Calcaterra Parks and Recreation Director Rhonda Humbles Public Works Director David Burks Water Services Director Diane Arthur Office of Communications Director Christine Nickel Human Resources Director TBD Development and Engineering Director Chris Hallet Neighborhood and Human Services Director Chris Jacques Planning & Community Development Director Myja Lark Office of Innovation Director xv City of Peoria Principal Officials of the City Fiscal Year 2025 Jason Beck Mayor Jennifer Crawford Jon Edwards Denette Dunn Vice Mayor Councilmember Councilmember Michael Finn Rick Stokes Matthew Bullock Councilmember Councilmember Mayor Pro Tem Henry Darwin City Manager Brenda Urias Assistant to the City Manager Kevin Burke Travis Cutright Mike Faust Deputy City Manager Deputy City Manager Deputy City Manager Marylou Stephens Emily Jurmu Agnes Goodwine Arts, Culture and Library Services Director City Attorney City Clerk Diane Arthur TBD Maria Laughner Director of Communications Development and Engineering Director Economic Development Services Director Sean Kindell Gary Bernard Christine Nickel Chief Financial Officer Fire Chief Human Resources Director Kris Dalmolin John Tatz Chris Hallett Information Technology Director Municipal Judge Neighborhood & Human Services Director Chris Calcaterra Chris Jacques Thomas Intreri Parks, Recreation & Community Facilities Director Planning and Community Development Director Police Chief Rhonda Humbles David Burks Public Works Director Water Services Director xvi City of Peoria Council Districts Lake Pleasant Mayor Jason Beck 623.773.4610 Mesquite Vice Mayor Jennifer Crawford Acacia District Mayor Pro Tem Michael Finn Palo Verde District 623.773.7785 623.773.7785 Carefree Hwy 67th Ave. Pinnacle Willow Councilmember Rick Stokes Ironwood District Councilmember Matt Bullock Mesquite District Councilmember Denette Dunn Pine District 623.773.7608 623.773.7608 623.773.7785 Ironwood Bell Rd. Palo Verde Youth Council Liaison Felicia Holly Youth Council Liaison Anika Navghare 623.773.7608 xvii 115th Ave. Councilmember Jon Edwards Willow District Pine Acacia Northern Ave. 67th Ave. Peoria Ave. xviii Financial Section 1 Independent Auditor’s Report Honorable Mayor and Members of the City Council City of Peoria, Arizona Report on Audit of Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Peoria, Arizona (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Peoria, Arizona, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons for the general fund, highway user revenues special revenue fund, transportation sales tax special revenue fund, and other grants special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City of Peoria, Arizona, and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Change in Accounting Principle As described in Note 1 to the financial statements, the City implemented the provisions of GASB Statement No. 101, Compensated Absences, for the year ended June 30, 2025. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 1 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:      Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, net pension liability information, and other postemployment benefit plan information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. 2 3 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 Fund Financial Statements and Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section, Statistical Section, and Continuing Disclosures but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on other work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2025, on our consideration of City of Peoria, Arizona’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Peoria, Arizona’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Peoria, Arizona’s internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Scottsdale, Arizona December 22, 2025 3 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, 2025. 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-xiii 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 $136.6 million, 6.9%, in fiscal year 2025, an increase of $79.4 million, 7.2%, in governmental activities and an increase of $57.2 million, 6.6%, in business-type activities.  Total net position of the City is $2,107.1 million, of which $247.6 million is unrestricted.  At June 30, 2025, total fund balance of the governmental funds was $496.3 million, an increase of $76.2 million from the previous year. Of this, $175.5 million or 74.8% of General Fund balance for fiscal year 2025 was unassigned and available for spending at the government’s discretion.  General Fund revenues (on a budgetary basis) were higher than budgeted inflows by $20.3 million for fiscal year 2025. Budgetary basis expenditures of the General Fund were 85.3% ($42.2 million in savings) of the final budgeted expenditures as the City continued cost saving measures due to the uncertainty about future revenues. 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, Other Grants Fund, GO Bond Debt Service Fund, Development Fee Fund, Non-Bond Capital Projects Fund, and GO Bond Capital Project 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, 2025, 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, 2025, compared to the prior year. Statement of Net Position As of June 30 (in millions of dollars) Governmental Activities Business-type Activities 2025 2024 2025 2024 Current and other assets Capital assets $ 628.7 1,055.7 $ 543.4 991.7 $ 191.2 853.5 $ 186.8 813.3 Total assets 1,684.4 1,535.1 1,044.7 1,000.1 2,729.1 2,535.2 Total deferred outflows of resources 52.8 49.8 3.5 2.9 56.3 52.7 Other liabilities Long-term liabilities outstanding 49.7 476.8 51.9 409.8 18.8 106.0 21.9 115.1 68.5 582.8 73.8 524.9 Total liabilities 526.5 461.7 124.8 137.0 651.3 598.7 Total deferred inflows of resources 22.0 13.9 5.0 4.8 27.0 18.7 828.8 184.4 175.5 $1,188.7 789.7 168.7 150.9 $1,109.3 769.9 41.2 107.3 $ 918.4 725.1 39.4 96.7 $ 861.2 1,598.7 225.6 282.8 $ 2,107.1 1,514.8 208.1 247.6 $ 1,970.5 Net position: Net investment in capital assets Restricted Unrestricted Total net position Total Primary Government 2025 $ 819.9 1,909.2 2024 $ 730.2 1,805.0 The net position of the City increased $136.6 million in fiscal year 2025. Net position of governmental activities increased $79.4 million, while the business-type activities increased $57.2 million. The 6.9% growth in net position reflects the strength of Peoria’s economy and the City’s efforts to control costs while providing valuable services to the public. Net position consists of three components. The largest portion of net position, $1,598.7 million reflects the City’s investment in capital assets net of accumulated depreciation/amortization 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 $225.6 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 $282.8 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 in Net Pos i tion As of June 30 (in millio ns o f do llars) Governmenta l Acti viti es 2025 2024 REVENUES: Progra m revenues : Fees , fi nes & cha rges for s ervi ces Opera ting gra nts a nd contri buti ons Ca pi ta l gra nts a nd contri buti ons Genera l revenues Property ta xes Sa l es a nd us e ta xes Fra nchi s e ta xes Sta te s ha red s a l es ta x Urba n revenue s ha ri ng Auto-i n-l i eu ta xes Inves tment ea rni ngs(l os s es ) Mi s cell a neous Tota l revenues EXPENSES: Progra m a cti vi ti es : Governmenta l a cti vi ti es : Genera l government Cul ture a nd recrea ti on Publ i c s a fety Devel opment s ervi ces Highwa ys a nd s treets Publ i c works Huma n s ervi ces Interes t expens e on debt Busi ness -type a cti vi ti es : Wa ter util i ty Wa s tewa ter uti li ty Sol id Wa s te uti li ty Sta di um Storm Dra i n uti l ity Tota l expens es Excess (deficit) before tra nsfers Tra ns fers a nd Speci a l Items Increa s e (decrea s e) i n net posi ti on Net pos i ti on - begi nni ng Net pos i ti on - ending $ 48.0 31.8 40.2 $ 50.0 29.0 61.7 Bus ines s -type Activi ties 2025 2024 $ 132.9 34.1 $ 127.5 45.1 Tota l Prima ry Government 2025 2024 $ 180.9 $ 177.5 31.8 74.3 29.0 106.8 37.5 140.8 5.6 30.5 42.3 10.4 24.9 5.0 417.0 35.7 134.1 5.5 29.9 52.4 9.9 21.3 4.4 433.9 7.8 0.1 174.9 7.2 179.8 37.5 140.8 5.6 30.5 42.3 10.4 32.7 5.1 591.9 35.7 134.1 5.5 29.9 52.4 9.9 28.5 4.4 613.7 43.1 46.2 131.0 6.8 66.7 7.5 5.6 7.5 39.7 44.7 121.4 6.5 66.5 7.6 5.1 6.5 - - 43.1 46.2 131.0 6.8 66.7 7.5 5.6 7.5 39.7 44.7 121.4 6.5 66.5 7.6 5.1 6.5 314.4 102.6 (23.2) 79.4 1,109.3 $ 1,188.7 298.0 135.9 (23.5) 112.4 996.9 $ 1,109.3 71.5 34.9 21.0 8.9 4.6 140.9 34.0 23.2 57.2 861.2 918.4 63.0 30.4 20.2 8.5 4.5 126.6 53.2 23.5 76.7 784.5 $ 861.2 71.5 34.9 21.0 8.9 4.6 455.3 136.6 136.6 1,970.5 $ 2,107.1 63.0 30.4 20.2 8.5 4.5 424.6 189.1 189.1 1,781.4 1,970.5 9 $ $ For fiscal year 2025, total governmental activities revenues decreased $16.9 million while total businesstype activities revenues decreased $4.9 million. Expenses increased $16.4 million for the governmental activities and increased $14.3 million for the business-type activities. The increase in expenses was primarily due to increased labor costs and rising material and equipment costs in the enterprise funds. The general revenues of governmental activities increased $3.8 million. Local sales and use taxes increased $6.7 million primarily due to strong growth in construction contracting sales tax which offset losses resulting from the removal of residential rental tax. Urban revenue sharing (shared state income taxes) revenues decreased $10.1 million in fiscal year 2025. State income tax allocations to the cities lag two years behind collections, so the decrease in fiscal year 2025 represents the decreased collections in fiscal year 2023 that resulted from the legislature approved flat income tax. Investment earnings continued to strengthen as the City’s portfolio is taking advantage of the increased interest rates. The program revenues of business-type activities saw an increase of $5.4 million in fees and charges for services reflecting the council approved rate increases that took effect July 1, 2024. However, this was offset by a decrease of $11.0 million in capital grants and contributions as less assets were acquired by developer contribution. 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 $120.0 million are 38.2% of the governmental activities expenses for fiscal year 2025, down from 47.2% in fiscal year 2024. The decrease is primarily due to a decrease in capital grants and contributions resulting from slowed residential development. In the business-type activities, program revenues of $167.0 million are 118.5% of the business-type expenses for fiscal year 2025. This compares to $172.6 million and 136.3% in fiscal year 2024. The decrease in percentage is primarily due to decreased capital contributions in water and wastewater related to slowing development activity. Governmental activities account for 70.5% of the total revenues of the City and 69.1% of the total expenses in fiscal year 2025. These percentages were 70.7% and 70.2% respectively in fiscal year 2024. 10 As seen in the following graph, one of the largest financing sources for the City in fiscal year 2025 is charges for services (30.6%), primarily because this is the major funding source of the business-type activities (75.9% of business-type total revenues in fiscal year 2025). The major funding sources of the governmental activities are property taxes, sales/use taxes, and state shared revenues. Property taxes increased from fiscal year 2024 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 2025 compared to the previous year. Total government-wide expenses of the City increased $30.7 million, 7.2% in fiscal year 2025. mentioned above, this was primarily due to labor costs and inflation on materials and equipment. As As shown in the following Government-Wide Functional Expenses graph, business-type activities account for 31.0% of the functional expenses of the City for fiscal year 2025, while governmental activities account for 69.0% of the functional expenses. For the governmental activities, the largest users of resources are public safety (28.8% of total expense, 41.7% of governmental expenses), highways and streets (14.6% of total expenses, 21.2% of governmental expenses), culture and recreation (10.1% of total expenses, 14.7% of governmental expenses), and general government (9.5% of total expenses, 13.7% 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, Development Fee Fund, General Obligation Bond Debt Service Fund, Other Grants Fund and Non-Bond Capital Project 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 $496.3, an increase of $76.2 million from the previous year. Of this, $239.3 million (an increase of $68.8 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. A $59.1 million increase in fund balance restricted for capital projects resulted from the sale of General Obligation Bonds in fiscal year 2025. An additional $83.9 million of the governmental fund balance (an increase of $2.3 million from the previous year) has been committed or assigned for specific purposes by council or administrative action. These commitments include various stabilization reserves ($76.7 million), debt service reserves ($1.0 million), capital projects ($3.6 million) and arts capital and various other purposes ($2.5 million). The remaining $173.2 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 increased by $5.1 million compared to the prior year. The City’s investment portfolio has been providing increased levels of investment earnings due to the high interest rate environment. Additionally, construction sales tax revenues increased significantly in fiscal year 2025. Since construction sales tax is not considered a stable ongoing revenue stream, expectations for future sales tax revenues were not adjusted for the increase. The City has chosen not to use these short term increased revenue levels for ongoing expenditures, so the excess is included in ending fund balance to be used for future one-time needs. 12 Governmental Funds - Fund Balance 300 FY24 250 FY25 Millions 200 150 100 50 - 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 decreased $1.0 million over the prior fiscal year. Although intergovernmental revenues decreased as the impact of the State’s change to flat tax was more fully realized, those decreases were mostly offset by increases in local sales tax collections and investment earnings. General Fund expenditures increased $23.3 million in fiscal year 2025 from fiscal year 2024. The increase is primarily the result of increased labor costs from wage increases and expanded staff particularly in public safety. The City also increased its capital spending in fiscal year 2025 as economic development projects moved forward. 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. Expenditures increased by $8.8 million in fiscal year 2025 over fiscal year 2024 primarily due to increased spending on capital projects. 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 increased $1.7 million. The City continues to invest in the Streets capital program to maintain the high quality of Peoria roads while budgeting conservatively to assure the ability to provide for future transportation needs. The fund balance increased $3.0 million in fiscal year 2025. All fund balance in this fund is restricted. The Other Grants Fund saw increases in both revenues and expenditures of $4.8 million and $6.4 million respectively. In fiscal year 2025, the City hired a grant program manager to more aggressively pursue grant funding opportunities. The GO Bond Debt Service Fund accounts for the payment of general obligation bonds and the related interest. Revenues in this fund increased by $1.5 million due to increased property valuations and growth. The City did not change the property tax rate from the prior year. 13 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 2025 resulting from a 27% decrease in building permits issues from FY24 to FY25. Expenditures increased $498 thousand in fiscal year 2025 as growth related capital projects continued. Fund balance increased $8.1 million versus the prior year. All fund balance in this fund is restricted. 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 $5.4 million decrease in expenditures from FY24 to FY25 was primarily the result of a decrease in infrastructure project expenditures funded from sources outside of the City. The GO Bond Capital Project 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. The City issued $88 million in bonds in fiscal year 2025 resulting in an increase of $56.8 million in fund balance after project expenditures. 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 Solid Waste, Stadium and Storm Drain Funds do not meet the quantitative criteria of a major fund, the City has chosen to present these funds as major funds due to local significance. Total net position of the enterprise funds increased $57.1 million in fiscal year 2025. Net investment in capital assets increased $44.8 million primarily due to growth and replacement in the water and storm drain systems. Unrestricted net position increased by $10.6 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 $5.4 million in fiscal year 2025. Water, Wastewater and Solid Waste utilities all saw increases in revenues primarily due to rate increases enacted July 1, 2024. In fiscal year 2024, the Arizona Sports and Tourism Authority accelerated the final payment to complete the contractual obligation for contributions to the stadium from a 2014 intergovernmental agreement. Not counting that payment in fiscal year 2024, stadium operating revenues increased $1.0 million in fiscal year 2025. Operating expenses of the enterprise funds increased $15.6 million in fiscal year 2025 primarily due to increased maintenance and materials costs. 14 The following graph shows the operating revenues and expenses for the enterprise funds for fiscal year 2025. Fiscal Year 2025 Enterprise Fund Operating Revenues and Expenses 80 70 Revenues Millions 60 Expenses 50 40 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 30-34. 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 100-105, and pages 112-116. General Fund revenues of $237.6 million, on a budgetary basis, exceeded budgeted revenues of $217.3 million by $20.3 million due to conservative budgeting. Budgetary basis expenditures of $244.2 million were 85.3% of final budgeted amounts primarily due to lower capital spending as inflation and supply issues delayed some capital projects. Fire and Human Services had small expenditure overages for functional departmental categories. During the fiscal year, the original General Fund expenditures and contingencies budget of $299.4 million was reduced by $11.7 million to the final expenditure and contingencies budget of $287.7 million. Notable budgetary transfers during the year were as follows:    $21.2 million transfer from the Half Cent Fund to the General Fund for the public safety subsidies. $4.8 million transfer from the Half Cent Fund to the Stadium Fund as a subsidy in support of the Peoria Sports Complex. Various transfers to the debt service funds to meet debt service requirements. 15 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As of June 30, 2025, the City had $1.6 billion invested in various capital assets, net of accumulated depreciation and related debt. The capital assets of the City (net of depreciation/amortization, but not capital debt) are $1.9 billion. This is a net increase of $104.2 million from June 30, 2024. Net capital assets of business-type activities increased $40.2 million while governmental activities increased $64.0 million. Notable additions to capital assets during the fiscal year included the following:      The City spent $12.9 million for regional drainage improvements at 67th Ave and Pinnacle Peak Rd. The City spent $11.1 million to acquire a new multipurpose police facility. The City spent $31.9 million on various street and traffic improvement projects. The City spent $11.6 million on water reclamation facility projects. The City spent $4.1 million to place new wells in the area of Lake Pleasant Parkway and the Central Arizona Project Canal. The following table provides a breakdown of the capital assets of the City at June 30, 2025, and 2024. Additional information on the City’s capital assets may be found in Note 6. Capital Assets at June 30 (Net of depreciation/amortization) (in millions of dollars) Governmental Activities 2025 2024 Buildings and building improvement Equipment; Furniture Vehicles Surface water system Street system Park system Water system Water rights Wastewater system Lease Assets SBITA Intangible Assets Land Work in progress Total $ 96.8 2.3 18.6 272.2 93.7 5.3 16.8 465.4 84.6 $1,055.7 $ 99.9 3.6 10.9 270.9 95.5 6.0 4.6 456.2 44.1 $ 991.7 Business-type Activities 2025 2024 $ 38.8 2.8 15.7 73.4 263.8 8.3 254.1 18.8 177.8 $ 853.5 $ 41.1 2.4 11.2 73.5 250.0 8.5 249.0 18.8 158.8 $ 813.3 Total Primary Government 2025 2024 $ 135.6 5.1 34.3 73.4 272.2 93.7 263.8 8.3 254.1 5.3 16.8 484.2 262.4 $1,909.2 $ 141.0 6.0 22.1 73.5 270.9 95.5 250.0 8.5 249.0 6.0 4.6 475.0 202.9 $1,805.0 The City has adopted a ten year capital improvement plan budgeted at $1,906.4 million, including $572.0 million in fiscal year 2026. Anticipated funding for this plan for fiscal year 2026 is through a combination of impact fees, utility revenue bonds, general obligation bonds, operating revenues, City and County transportation sales taxes and other outside funding sources. The estimated operating budget impact of 16 the capital improvement program over the next five fiscal years is expected to be $53.6 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, leases, SBITA, compensated absences, and deferred bond premiums was $363.6 million at June 30, 2025. Of this total, $285.5 million was in governmental activities and $78.1 million was in business-type activities. The City’s outstanding debt (due in more than one year excluding claims and net pension liability) decreased by $45.6 million in fiscal year 2025. Of the total outstanding bonds and loans of $373.4 million, $244.9 million is general obligation bonds or loans backed by the full faith and credit of the City. The outstanding debt also includes $21.2 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, 2025, and 2024. 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 2025 2024 2025 2024 General obligation debt $ 244.9 Excise tax revenue obligations 16.8 Direct Purchase and Loan Obligations 7.8 Water/Sewer Revenue bonds and loans Community Facilities District bonds 21.2 Compensated absences 21.1 Leases 5.4 SBITA 12.6 $ 329.8 Total $ 170.9 19.0 11.8 18.8 20.2 6.0 4.0 $ 250.7 $ $ 82.7 2.5 85.2 $ 92.0 2.2 $ 94.2 Total Primary Government 2025 2024 $ 244.9 16.8 7.8 82.7 21.2 23.6 5.4 12.6 $ 415.0 $ $ 170.9 19.0 11.8 92.0 18.8 22.4 6.0 4.0 344.9 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 4.4% in fiscal year 2025, this was higher than the 2.3% growth in fiscal year 2024 and equal to the growth seen in fiscal year 2023. Retail sales tax, the City’s largest category, increased by 4.5% from the prior year while restaurant/bar, the second largest category, increased by 2.8%. Beginning January 1, 2025 the City is no longer collecting residential rental sales tax which resulted in a decrease in rental sales tax collections. This was offset by a strong performance on contracting sales tax which increased 53.6% over fiscal year 2024 collections. 17 In fiscal year 2025 Peoria issued $289 million in building permits as compared to $355 million in fiscal year 2024 and $164 million is fiscal year 2023. The ten year average for permits is $317 million, so this may be an indicator of a slowing economy. The adopted fiscal year 2026 budget is $1,192 million, an increase of 19.8% from the fiscal year 2025 budget. The operating budget totals $620.0 million, which is an increase of 10.2% from 2025. The capital projects portion of the budget, $572.0 million, is divided in the following manner: $39.2 million for drainage projects, $64.0 million for operational facilities, $27.9 million for parks, trails, open space and libraries, $43.6 million for public safety projects, $91.8 million for streets and traffic control projects, $31.9 million for economic development projects, $49.7 million for wastewater projects, $107.6 million for water projects, and $116.3 million for the Peoria Innovation Core. The General Fund operating budget is $255.3 million, up 7.1% 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 2026 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. 18 Basic Financial Statements CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2025 ASSETS Pooled cash and investments Cash with fiscal agents Accounts receivable, net Lease receivable Interest receivable Internal balances Due from other governments Loan receivable Prepaid items Supply inventories Restricted pooled cash and investments Restricted cash with fiscal agents Restricted investments Investments in joint venture agreements Net other postemployment benefits asset Capital assets: Non-depreciable or amortizable Depreciable or amortizable (net) Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other postemployment benefits Deferred loss on bond refunding Excess consideration provided for acquisition Total deferred outflows of resources LIABILITIES Accounts payable Accrued payroll Interest payable Due to other governments Customer deposits Claims and judgements payable Other liabilities Unearned revenue-other Non-current liabilities: Due within one year: Current portion of claims payable Current portion of compensated absences Current portion of bonds & loans payable Current portion of lease payable Current portion of SBITA payable Due in more than one year: Noncurrent portion of claims payable Noncurrent portion of compensated absences Noncurrent portion of bonds & loans payable Noncurrent portion of lease payable Noncurrent portion of SBITA payable Net pension and other postemployment benefits liablilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows related to leases Deferred inflows related to pensions and other postemployment benefits Total deferred inflow of resources NET POSITION Net investment in capital assets Restricted for: Debt service Capital projects Development fees Transportation purposes Grant purposes Facilities maintenance Public safety Trust purpose Net other postemployment benefits Unrestricted Total net position Governmental Activities Primary Government Business-type Activities Total $ 435,555,416 343,875 20,093,299 11,156,027 3,864,139 (4,164,084) 9,656,369 4,973,062 656,652 22,322,690 8,574,716 110,178,383 1,417,076 4,173,389 $ 148,516,591 15,578,048 3,915,142 1,010,338 4,164,084 1,224,546 1,132,723 3,759 14,966,801 620,443 $ 584,072,007 343,875 35,671,347 15,071,169 4,874,477 9,656,369 1,224,546 4,973,062 1,789,375 22,322,690 8,578,475 125,145,184 1,417,076 4,793,832 561,406,184 494,247,394 1,684,454,587 196,568,997 656,954,771 1,044,656,243 757,975,181 1,151,202,165 2,729,110,830 52,250,762 530,296 52,781,058 3,072,817 464,132 3,536,949 55,323,579 530,296 464,132 56,318,007 24,909,610 6,017,542 4,235,552 467,083 44,789 165,061 4,851,652 8,978,756 9,189,852 642,342 1,360,106 363,967 2,342,576 339,019 4,601,864 34,099,462 6,659,884 5,595,658 831,050 2,387,365 165,061 5,190,671 13,580,620 7,914,708 10,266,195 30,113,785 655,480 2,150,695 482,756 1,199,661 9,664,245 2,620 - 8,397,464 11,465,856 39,778,030 658,100 2,150,695 1,930,388 10,787,209 276,120,618 4,729,654 10,474,440 1,252,757 77,261,645 4,128 - 1,930,388 12,039,966 353,382,263 4,733,782 10,474,440 121,672,857 526,486,074 16,099,533 124,807,071 137,772,390 651,293,145 10,418,478 3,670,671 14,089,149 11,590,936 22,009,414 1,352,270 5,022,941 12,943,206 27,032,355 828,799,497 769,907,037 1,598,706,534 31,224,033 60,578,994 49,617,067 13,790,499 19,989 2,321,561 22,730,292 4,173,389 175,484,836 $ 1,188,740,157 40,403,058 100,000 620,443 107,332,642 $ 918,363,180 31,224,033 40,403,058 60,578,994 49,617,067 13,790,499 119,989 2,321,561 22,730,292 4,793,832 282,817,478 $ 2,107,103,337 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, 2025 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 $ $ $ 3,618,489 11,687,302 11,073,498 4,137,964 7,455,761 9,962,199 91,148 - 314,452,633 48,026,361 71,518,191 34,993,493 20,934,233 8,889,253 4,619,802 74,247,327 28,689,847 22,972,448 5,350,997 1,613,668 140,954,972 Total business-type activities Total primary government 43,135,951 46,199,311 131,017,091 6,769,822 66,673,011 7,528,590 5,621,479 7,507,378 Fees, Fines & Charges for Services 455,407,605 2,860,059 1,722,461 8,800,900 120,169 15,142,164 3,154,806 - 180,900,648 $ 31,800,559 22,706,758 8,800,908 2,588,745 $ 31,800,559 40,199,091 40,199,091 - 132,874,287 $ Capital Grants and Contributions 34,096,411 $ 74,295,502 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 earnings Miscellaneous Transfers in (out) Governmental Activities $ (36,657,403) (32,789,548) (111,142,693) (2,511,689) (3,875,995) 2,433,609 (2,375,525) (7,507,378) Business-type Activities $ (194,426,622) Change in net position $ - (194,426,622) (36,657,403) (32,789,548) (111,142,693) (2,511,689) (3,875,995) 2,433,609 (2,375,525) (7,507,378) (194,426,622) 25,435,894 2,497,262 2,038,215 (3,538,256) (417,389) 7,364,070 30,126,345 140,746,001 5,620,099 Total general revenues and transfers - Total 25,435,894 2,497,262 2,038,215 (3,538,256) (417,389) 26,015,726 26,015,726 26,015,726 (168,410,896) - 7,364,070 30,126,345 140,746,001 5,620,099 30,500,400 42,279,677 10,420,735 24,870,669 5,063,032 (23,171,774) 7,893,552 79,058 23,171,774 30,500,400 42,279,677 10,420,735 32,764,221 5,142,090 - 273,819,254 31,144,384 304,963,638 79,392,632 57,160,110 136,552,742 Net position - beginning 1,109,347,525 861,203,070 1,970,550,595 Net position - ending $ 1,188,740,157 The accompanying notes are an integral part of the financial statements 20 $ 918,363,180 $ 2,107,103,337 CITY OF PEORIA, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2025 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 Prepaid items Supply inventories Restricted cash with fiscal agents Restricted investments Total assets $ $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES & FUND BALANCES Liabilities: Accounts payable Accrued payroll Interest payable Due to other funds Due to other governments Customer deposits Claims and judgements payable Other liabilities Unearned revenue-other Total liabilities Deferred Inflows of Resources: Unavailable revenue-settlements Related to leases Unavailable revenue - other Total deferred inflows of resources Fund Balances: Nonspendable: Supply inventories Prepaid items 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 232,007,377 15,633 13,499,798 11,156,027 2,089,823 20,877,636 2,434,126 229 191,907 282,272,556 $ 15,338,558 426,481 99,621 1,499,303 138,684 $ 17,502,647 $ 6,825,983 5,465,813 60,133 467,083 44,789 21,383 4,002,751 860,024 17,747,959 $ $ $ 948,380 948,380 $ 10,418,478 233,842 10,652,320 - - 191,907 229 138,684 - - 19,989 12,435,123 - 1,000,000 4,063 26,147,777 17,431,852 28,226,339 $ 4,025,851 161,072 741,917 4,928,840 $ 35,960,789 1,836,164 194,687 37,991,640 12,573,807 $ 17,502,647 $ The accompanying notes are an integral part of the financial statements 22 6,242,109 3,807,834 43,523 2,763,383 691,920 13,548,769 $ 24,826,494 81,068 330,106 891,656 $ 26,129,324 1,473,127 36,217 20,019 2,736,627 4,265,990 $ 2,966,812 - 37,043,260 37,991,640 GO Bond Debt Service Fund 3,748,934 28,824 3,777,758 37,043,260 - - 4,888,501 175,961,620 253,872,277 282,272,556 $ Other Grants Fund 2,538,209 - $ 5,505,021 13,548,769 116,656 84,785 201,441 25,927,883 - 25,927,883 $ 26,129,324 (continued) CITY OF PEORIA, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2025 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 Prepaid items Supply inventories Restricted cash with fiscal agents Restricted investments Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES & FUND BALANCES Liabilities: Accounts payable Accrued payroll Interest payable Due to other funds Due to other governments Customer deposits Claims and judgements payable Other liabilities Unearned revenue-other Total liabilities Deferred Inflows of Resources: Unavailable revenue-settlements Related to leases Unavailable revenue - other Total deferred inflows of resources Fund Balances: Nonspendable: Supply inventories Prepaid items 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 Development Fee Fund Non-bond Capital Projects Fund GO Bond Capital Projects Fund Non-Major Governmental Funds Total Governmental Funds $ 61,763,078 357,741 $ 62,120,819 $ 8,459,116 36,304 2,553,071 11,048,491 $ 286,468 100,640,174 100,926,642 $ 13,898,403 385,306 98,544 76,380 16,446 6,991,140 21,466,219 $ 398,495,924 15,633 19,955,583 11,156,027 3,287,779 20,877,636 9,656,369 16,675 330,591 8,574,716 100,640,174 $ 573,007,107 $ $ 2,056,494 59,542 5,377,105 7,493,141 $ 4,061,991 18,083,272 22,145,263 $ 95,344 25,450 14,417 2,794,364 58,893 5,000 2,993,468 $ 1,539,078 2,747 1,541,825 $ $ $ 21,026,248 5,691,299 211,225 20,877,636 467,083 44,789 165,061 4,804,210 8,978,756 62,266,307 - - - - 3,748,934 10,418,478 262,666 14,430,078 - - - 16,446 330,591 16,675 9,515,256 2,278,543 2,321,561 7,065,948 - 35,443,139 81,059,922 60,578,994 49,478,383 2,321,561 10,032,760 19,989 60,578,994 - - 60,578,994 $ 62,120,819 78,781,379 - - $ 3,555,350 3,555,350 11,048,491 - $ 78,781,379 100,926,642 The accompanying notes are an integral part of the financial statements 23 - $ (2,725,003) 18,472,751 21,466,219 1,000,000 4,063 2,538,209 26,147,777 17,431,852 28,226,339 3,555,350 4,888,501 173,236,617 496,310,722 $ 573,007,107 24 CITY OF PEORIA, ARIZONA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES JUNE 30, 2025 Fund balances - total governmental funds $ 496,310,722 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 $ 1,498,445,509 (472,643,141) 1,025,802,368 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 3,852,230 530,296 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 SBITA payable Compensated absences (290,689,281) (5,385,134) (1,665,304) (19,840,421) Equity in joint ventures are not financial resources and, therefore, are not reported in the funds. (317,580,140) 1,417,076 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 (15,545,122) 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 4,011,600 Interest payable on long-term debt is not reported in the governmental funds. (3,739,537) 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. 67,250,733 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. (113,339,294) 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 50,660,187 (10,890,962) Total net position of governmental activities 39,769,225 $ 1,188,740,157 The accompanying notes are an integral part of the financial statements 25 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Major Funds General Fund REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings (loss) Miscellaneous Total revenues $ 125,987,316 83,912,719 24,544,350 6,234,398 1,937,207 1,786,701 12,388,157 3,078,943 259,869,791 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): Issuance of debt Premium on bonds issued Issuance of debt - from subscriptions Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Highway User Revenue Fund Transportation Sales Tax Fund $ $ 6,347,962 15,142,164 336,731 865,490 22,692,347 21,394,892 1,689,154 23,084,046 Other Grants Fund $ 13,903,513 958,570 176,485 325,651 153,076 15,517,295 GO Bond Debt Service Fund $ 24,557,138 816,219 25,373,357 37,203,742 36,154,432 132,121,331 5,748,230 7,065,170 1,335,326 26,292,221 - 5,082,781 - 483,959 3,099,723 1,265,662 802,062 147,729 1,272,938 129,300 - 1,353,031 212,242 13,321,257 234,514,761 4,150,619 30,442,840 8,125,668 13,208,449 20,019 7,141,812 14,233,904 14,527,862 5,616,562 20,273,724 25,355,030 (7,750,493) 9,875,597 1,283,391 5,099,633 1,762,986 (14,572,645) (12,809,659) 1,000,000 (65) 999,935 (6,903,664) (6,903,664) 832,595 (1,792,421) (959,826) 12,545,371 (6,750,558) 2,971,933 323,565 5,099,633 241,326,906 19,324,365 34,071,327 5,181,456 20,828,250 $ 253,872,277 $ 12,573,807 $ 37,043,260 $ 5,505,021 - $ The accompanying notes are an integral part of the financial statements 26 25,927,883 (continued) CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Major Funds REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings (loss) Miscellaneous Total revenues Development Fee Fund Non-bond Capital Projects Fund GO Bond Capital Projects Fund Non-Major Governmental Funds Total Governmental Funds $ $ $ $ 5,610,274 1,851,619 91,088 630,499 753,662 8,937,142 $ 183,897,582 119,830,533 37,061,933 6,234,398 2,113,692 1,786,701 21,657,908 9,474,364 382,057,111 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): Issuance of debt Premium on bonds issued Issuance of debt - from subscriptions Transfers in Transfers out Total other financing sources and uses Fund balances - beginning $ 5,020,518 232,246 5,488,683 10,741,447 1,684,568 1,684,568 86,950 3,583 229,238 3,194,310 - 56,363 - 19,472 623,685 1,629,882 6,165,597 267,275 - 166,387 107,263 2,716,382 38,002,860 39,964,790 135,020,458 6,779,530 40,791,272 7,587,437 5,324,646 2,510,518 6,024,599 6,480,939 6,537,302 546,614 18,881,757 28,134,282 10,583,267 2,597,795 4,008,482 20,179,576 26,464,160 8,993,232 64,621,052 373,549,437 8,132,519 4,204,145 (26,449,714) (11,242,434) 8,507,674 (8,980,286) (8,980,286) 88,513,789 2,633,887 (7,893,578) 83,254,098 6,810,000 156,078 7,309,955 (1,204,235) 13,071,798 95,323,789 2,789,965 832,595 10,072,941 (41,346,894) 67,672,396 8,132,519 (4,776,141) 56,804,384 1,829,364 76,180,070 52,446,475 8,331,491 21,976,995 16,643,387 420,130,652 18,472,751 $ 496,310,722 - Net change in fund balances Fund balances - ending 11,131,194 3,025,924 14,157,118 60,578,994 $ 3,555,350 $ 78,781,379 $ 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, 2025 Net change in fund balances - total governmental funds $ 76,180,070 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. (1,501,085) 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. 638,908 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. (160,331) 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 ($64,621,052) exceeds depreciation and amortization ($38,867,654) in the current period. 25,753,398 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. (4,004,498) Donations of capital assets are not reflected on the governmental fund statements but are shown in the statement of activities. 34,735,528 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. (96,156,384) 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. 26,464,160 Bond premiums or discounts and gains or losses on bond refunding are sources or uses of current financial resources for governmental fund reporting when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. (644,545) 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. 7,853,522 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. 10,233,889 Change in net position of governmental activities $ The accompanying notes are an integral part of the financial statements 29 79,392,632 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Intergovernmental Charges for services Licenses and permits Fines and forfeitures Rents Investment earnings Miscellaneous Total revenues $ 83,630,677 82,308,014 44,131,028 4,521,279 1,217,000 1,076,318 202,460 255,000 217,341,776 $ 83,630,677 82,308,014 44,131,028 4,521,279 1,217,000 1,076,318 202,460 255,000 217,341,776 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 90,518,472 83,790,821 44,042,611 6,234,398 1,937,207 2,077,410 6,859,455 2,131,855 237,592,229 $ 6,887,795 1,482,807 (88,417) 1,713,119 720,207 1,001,092 6,656,995 1,876,855 20,250,453 EXPENDITURES: Current: General government: Mayor and council City manager Human resources Attorney City clerk Court Economic development Finance Non-departmental Culture and recreation Human services Public safety: Police Fire 949,818 8,399,853 5,670,982 5,637,474 1,407,195 3,827,973 3,643,557 12,325,143 7,008,579 39,854,072 1,397,099 949,818 8,455,829 5,895,526 5,754,023 1,407,195 4,182,621 2,214,557 12,464,408 7,120,907 40,601,854 1,392,899 817,065 6,954,019 5,419,613 4,847,872 1,213,275 3,784,469 1,814,399 11,446,209 4,028,769 35,878,905 1,445,827 (132,753) (1,501,810) (475,913) (906,151) (193,920) (398,152) (400,158) (1,018,199) (3,092,138) (4,722,949) 52,928 82,911,018 55,021,472 82,148,418 54,282,634 79,160,817 54,392,907 (2,987,601) 110,273 Development services Public works Capital outlay Total expenditures 6,885,195 8,203,107 28,722,707 271,865,244 6,884,195 8,204,107 44,390,929 286,349,920 5,748,230 7,065,170 20,135,475 244,153,021 (1,135,965) (1,138,937) (24,255,454) (42,196,899) (54,523,468) (69,008,144) (6,560,792) 62,447,352 (27,535,521) 28,067,317 (8,692,868) (8,161,072) (1,390,883) 28,067,317 (8,692,868) 17,983,566 28,068,231 (14,235,011) 13,833,220 1,390,883 914 (5,542,143) (4,150,346) (62,684,540) (51,024,578) 7,272,428 58,297,006 155,623,713 155,623,713 175,445,779 19,822,066 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 $ 92,939,173 $ 104,599,135 $ 182,718,207 The accompanying notes are an integral part of the financial statements 30 $ 78,119,072 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2025 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 schedule 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 schedule 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Capital outlay for SBITAs 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 Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes 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 31 $ 237,592,229 38,004,061 (19,498,261) 3,771,762 $ 259,869,791 $ 244,153,021 11,348,803 (11,011) (794,584) (683,207) (19,498,261) $ 234,514,761 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT HIGHWAY USER REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Intergovernmental Charges for services Investment earnings(loss) 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 $ 6,770,556 15,481,027 135,000 782,000 23,168,583 $ 6,770,556 15,481,027 135,000 782,000 23,168,583 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 6,333,531 15,142,164 436,731 637,301 22,549,727 $ (437,025) (338,863) 301,731 (144,699) (618,856) 22,191,682 9,699,380 31,891,062 22,084,420 11,645,841 33,730,261 19,852,944 9,913,682 29,766,626 (2,231,476) (1,732,159) (3,963,635) (8,722,479) (10,561,678) (7,216,899) 3,344,779 (1,000,000) 2,151,995 (1,151,995) - 2,151,995 (1,151,995) 1,000,000 2,097,688 (1,097,688) 1,000,000 (54,307) 54,307 - (8,722,479) (9,561,678) (6,216,899) 3,344,779 15,032,773 15,032,773 19,324,365 4,291,592 6,310,294 $ 5,471,095 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "Total revenues" from the budgetary comparison schedule Differences - budget to GAAP: Interdepartmental service charges are revenue on a budgetary basis, but are eliminated from the financial statements under GASB 34'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 budgetary comparison statement Differences - budget to GAAP: Capital outlay recognized as expenditures for budgetary purposes, but assets capitalized in proprietary funds for financial reporting 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 $ 13,107,466 $ 22,549,727 (85,569) 228,189 $ 22,692,347 $ 29,766,626 576,214 100,000 $ 30,442,840 The accompanying notes are an integral part of the financial statements 32 $ 7,636,371 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT TRANSPORTATION SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Total revenues $ EXPENDITURES: Current: Highways and streets 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 $ 19,284,037 1,000,000 20,284,037 $ 19,284,037 1,000,000 20,284,037 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 21,394,892 1,245,456 22,640,348 $ 2,110,855 245,456 2,356,311 148,087 28,683,462 28,831,549 3,426,674 26,814,153 30,240,827 3,211,529 10,114,374 13,325,903 (215,145) (16,699,779) (16,914,924) (8,547,512) (9,956,790) 9,314,445 19,271,235 (1,000,000) (6,903,664) (7,903,664) (6,903,664) (6,903,664) (6,903,664) (6,903,664) - (16,451,176) (16,860,454) 2,410,781 19,271,235 30,334,168 30,334,168 34,071,327 3,737,159 13,882,992 $ 13,473,714 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule Differences - budget to GAAP: The 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 or resources: Actual amounts (budgetary basis) "Total expenditures" from the 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds $ 36,482,108 $ 22,640,348 443,698 $ 23,084,046 $ 13,325,903 1,871,252 (1,988,706) $ The accompanying notes are an integral part of the financial statements 33 13,208,449 $ 23,008,394 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON STATEMENT OTHER GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2025 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 Public works Human services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Issuance of debt Contingencies Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 12,670,755 501,000 99,000 105,481 357,949 13,734,185 $ 12,670,755 501,000 99,000 105,481 357,949 13,734,185 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 8,903,513 960,743 176,485 298,956 389,616 10,729,313 $ (3,767,242) 459,743 77,485 193,475 31,667 (3,004,872) 639,334 3,934,678 4,199,549 1,650,634 5,114,654 3,246,701 18,785,550 533,182 4,515,927 6,273,872 2,025,756 4,951,786 3,327,737 21,628,260 483,093 2,732,146 2,110,774 801,787 113,059 1,272,938 2,893,367 10,407,164 (50,089) (1,783,781) (4,163,098) (1,223,969) 113,059 (3,678,848) (434,370) (11,221,096) (5,051,365) (7,894,075) 322,149 8,216,224 (2,500,000) (226,683) (2,726,683) (226,683) (226,683) 832,595 (253,438) 579,157 832,595 (26,755) 805,840 (7,778,048) (8,120,758) 901,306 9,022,064 12,983,123 12,983,123 5,181,456 (7,801,667) 5,205,075 $ 4,862,365 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule Differences - budget to GAAP: The City budgets certain revenues on the cash basis, rather than on the modified accrual basis Total revenues as reported on the combining statement of revenue, expenditures, and changes in fund balances - governmental funds Uses/outflows of resources: Actual amounts (budgetary basis) "Total expenditures" from the budgetary comparison schedule 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds $ 6,082,762 $ 10,729,313 4,787,982 $ 15,517,295 $ 10,407,164 (421,705) 4,248,445 $ The accompanying notes are an integral part of the financial statements 34 14,233,904 $ 1,220,397 35 CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2025 Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Leases receivable Interest receivable Loan 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 Lease assets Intangible-SBITA 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 $ DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other postemployment benefits Excess consideration provided for acquisition Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Accrued payroll Interest payable Due to other governments Customer deposits Other liabilities Current portion of claims payable Current portion of compensated absences Current portion of bonds & loans payable Current portion of lease payable Current portion of SBITA 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 Long-term portion of lease payable Long-term portion of SBITA payable Net pension and other postemployment benefits liablilities Total non-current liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions and other postemployment benefits Deferred inflows related to leases Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted: Capital projects Facilities maintenance Trust purpose Net other postemployment benefits Unrestricted Total net position $ 97,927,577 9,373,233 595,226 1,224,546 1,132,723 110,253,305 $ 20,101,626 3,279,305 185,528 23,566,459 10,292,238 2,736,923 52,350 13,081,511 1,858 5,997,430 5,999,288 1,901 8,969,371 8,971,272 1,662,522 478,285,931 12,889,809 8,666,935 2,836,300 (228,062,288) 6,867,999 79,786,414 362,933,622 253,914 369,186,824 479,440,129 7,612,045 462,725,049 2,645,786 2,726,187 (216,357,911) 3,878,001 72,692,668 335,921,825 132,657 345,025,754 368,592,213 400,649 21,746,424 (9,221,844) 12,925,229 179,692 13,104,921 26,186,432 1,257,537 464,132 1,721,669 656,999 656,999 889,946 889,946 4,396,205 279,007 883,260 363,083 2,341,576 339,019 482,756 521,033 6,204,822 4,593,964 20,404,725 3,899,856 132,964 476,846 271,605 3,459,423 8,240,694 401,889 174,004 307,660 883,553 595,289 54,938,854 6,588,668 62,122,811 82,527,536 258,219 22,322,791 3,442,240 26,023,250 34,263,944 343,737 4,662,733 5,006,470 5,890,023 553,410 553,410 289,130 289,130 391,643 391,643 304,166,052 311,079,412 12,925,229 19,797,729 253,914 73,863,157 398,080,852 4,953,217 132,657 18,530,852 $ 334,696,138 195 179,692 7,689,596 20,794,712 (continued) 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 36 $ - $ CITY OF PEORIA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2025 ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Leases receivable Interest receivable Loan 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 Lease assets Intangible-SBITA 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 $ 18,883,964 5,904 3,915,142 171,977 22,976,987 $ - DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions and other postemployment benefits Excess consideration provided for acquisition Total deferred outflows of resources 1,311,186 182,683 5,257 1,499,126 $ - Total Governmental Activities Internal Service Funds 148,516,591 15,578,048 3,915,142 1,010,338 1,224,546 1,132,723 171,377,388 $ 37,059,492 22,322,690 328,242 137,716 576,360 4,956,387 326,061 65,706,948 3,759 14,966,801 14,970,560 9,538,209 9,538,209 70,823,207 2,383,254 181,551 12,868 (38,930,310) 6,703,349 10,492,682 51,666,601 45,061 51,711,662 74,688,649 127,539,220 140,938 626,644 (54,378,195) 1,375,175 14,772,709 90,076,491 9,119 90,085,610 91,584,736 80,097,774 1,068,550,200 12,889,809 14,237,562 28,117,106 12,868 (546,950,548) 18,824,524 177,744,473 853,523,768 620,443 869,114,771 1,040,492,159 148,102 27,194,339 46,290,199 3,876,760 (59,129,855) 11,471,665 29,851,210 321,159 39,710,578 105,417,526 223,170 223,170 45,165 45,165 3,072,817 464,132 3,536,949 1,590,575 1,590,575 LIABILITIES Current liabilities: Accounts payable Accrued payroll Interest payable Due to other governments Customer deposits Other liabilities Current portion of claims payable Current portion of compensated absences Current portion of bonds & loans payable Current portion of lease payable Current portion of SBITA 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 Long-term portion of lease payable Long-term portion of SBITA payable Net pension and other postemployment benefits liablilities Total non-current liabilities Total liabilities 176,819 50,026 884 1,000 93,264 2,620 7,900 332,513 315,083 6,341 6,099 327,523 9,189,852 642,342 1,360,106 363,967 2,342,576 339,019 482,756 1,199,661 9,664,245 2,620 4,601,864 30,189,008 3,883,362 326,243 284,790 47,442 7,914,708 660,650 1,237,609 14,354,804 53,978 4,128 1,169,256 1,227,362 1,559,875 1,534 236,636 238,170 565,693 1,252,757 77,261,645 4,128 16,099,533 94,618,063 124,807,071 1,930,388 552,333 9,722,222 8,333,563 20,538,506 34,893,310 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions and other postemployment benefits Deferred inflows related to leases Total deferred inflows of resources 98,211 3,670,671 3,768,882 19,876 19,876 1,352,270 3,670,671 5,022,941 699,974 699,974 51,659,853 90,076,491 769,907,037 18,539,000 15,651,917 100,000 45,061 2,126,231 $ 69,583,062 9,119 958,722 91,044,332 40,403,058 100,000 620,443 103,168,558 914,199,096 22,730,292 321,159 29,824,366 $ 71,414,817 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 $ 4,164,084 918,363,180 CITY OF PEORIA, ARIZONA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund OPERATING REVENUES Charges for services Rents Intergovernmental Miscellaneous Total operating revenues $ 70,140,486 1,327,759 2,779,082 74,247,327 $ 28,558,541 131,306 28,689,847 $ 22,917,703 54,745 22,972,448 8,566,486 46,928,527 14,570,148 70,065,161 4,182,166 4,812,187 17,026,272 12,494,915 34,333,374 (5,643,527) 6,208,605 12,865,601 1,769,172 20,843,378 2,129,070 4,938,884 (1,564,046) 38,909 3,413,747 1,602,153 (660,589) 40,149 981,713 465,713 465,713 7,595,913 (4,661,814) 2,594,783 Capital contributions Transfers in Transfers out Change in net position 22,706,758 2,130,133 (3,179,512) 29,253,292 8,800,908 3,572,513 (130,347) 7,581,260 (20,518) 2,574,265 Total net position - beginning 368,827,560 327,114,878 18,220,447 Total net position - ending $ 398,080,852 $ 334,696,138 $ 20,794,712 (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 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, 2025 Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund OPERATING REVENUES Charges for services Rents Intergovernmental 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) 2,224,745 3,115,827 10,425 5,350,997 $ 1,613,668 1,613,668 Total $ Governmental Activities Internal Service Funds 125,455,143 3,115,827 1,327,759 2,975,558 132,874,287 $ 64,682,116 1,378,223 66,060,339 1,483,062 5,234,537 2,175,645 8,893,244 (3,542,247) 291,586 1,210,846 3,121,487 4,623,919 (3,010,251) 21,361,926 83,265,783 34,131,367 138,759,076 (5,884,789) 10,702,052 22,299,312 29,817,247 6,515,067 69,333,678 (3,273,339) 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 847,674 (318) 847,356 39,128 39,128 7,893,552 (2,224,953) 79,058 5,747,657 3,212,761 (342,302) 183,280 3,053,739 (2,694,891) (2,971,123) (137,132) (219,600) Capital contributions Transfers in Transfers out Change in net position 5,791,057 3,096,166 2,588,745 15,008,448 14,626,070 34,096,411 26,502,151 (3,330,377) 57,131,053 8,166,872 (64,693) 7,882,579 Total net position - beginning 66,486,896 76,418,262 857,068,043 63,532,238 $ 69,583,062 $ 91,044,332 914,199,096 $ 71,414,817 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 29,057 $ 57,160,110 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, 2025 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 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 Prepayment of long-term liabilities Principal payments on long-term liabilities Interest paid on long-term liabilities Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sale 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 Classified as: Cash and cash equivalents Restricted pooled cash and investments Restricted cash with fiscal agents Totals $ 73,207,584 (42,678,843) (8,271,565) 482,756 (3,596,479) 19,143,453 $ 28,480,122 (14,504,875) (4,575,863) (1,831,655) 7,567,729 $ 22,645,128 (4,566,301) (6,335,759) (8,199,908) 3,543,160 2,130,133 (3,179,512) 3,572,513 (130,347) (20,518) (1,049,379) 3,442,166 (20,518) (13,233,964) 12,955 9,095,693 (1,224,546) (5,975,961) (2,041,509) (19,458,773) 9,000 2,607,173 (3,287,592) (1,118,229) (3,654,582) 582,853 - (13,367,332) (21,248,421) (3,071,729) (4,407,665) 4,107,721 4,807,381 4,507,437 (4,699,081) 4,379,841 1,692,308 1,373,068 460,338 460,338 9,234,179 88,695,256 $ 97,929,435 (8,865,458) 28,968,985 $ 20,103,527 911,251 9,380,987 $ 10,292,238 $ 97,927,577 $ 20,101,626 $ 10,292,238 1,858 $ 97,929,435 1,901 $ 20,103,527 $ 10,292,238 (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, 2025 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 $ 6,816,472 (5,465,207) (2,006,423) (581,406) (1,236,564) $ 1,610,407 (641,702) (317,538) (303,807) 347,360 $ 132,759,713 (67,856,928) (21,507,148) 482,756 (14,513,255) 29,365,138 5,791,057 - 15,008,448 - 26,502,151 (3,330,377) 8,166,872 (64,693) 5,791,057 15,008,448 23,171,774 8,102,179 (4,694,489) (2,521) (318) (14,281,738) - (55,323,546) 604,808 11,702,866 (1,224,546) (9,266,074) (3,160,056) (14,369,141) 193,231 8,512,584 (81,496) (4,697,328) (14,281,738) (56,666,548) (5,744,822) 809,082 809,082 37,251 37,251 (9,106,746) 8,487,562 7,806,360 7,187,176 (4,351,275) 3,831,145 3,142,446 2,622,316 666,247 18,217,717 $ 18,883,964 1,111,321 199,865 $ 1,311,186 3,057,540 145,462,810 $ 148,520,350 $ 3,492,931 56,217,493 59,710,424 $ 18,883,964 $ 1,311,186 $ 148,516,591 $ $ 18,883,964 $ 1,311,186 3,759 $ 148,520,350 $ CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in Transfers out 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 Principal payments on long-term liabilities Interest paid on long-term liabilities Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sale 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 Classified as: Cash and cash equivalents Restricted pooled cash and investments Restricted cash with fiscal agents Totals Total Governmental Activities Internal Service Funds The accompanying notes are an integral part of the financial statements 41 $ 65,978,837 (26,217,419) (11,076,750) (30,171,410) (1,486,742) 37,059,492 22,322,690 328,242 59,710,424 (continued) CITY OF PEORIA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Business-type Activities Major Enterprise Funds Water Utility Wastewater Solid Waste Fund Utility Fund Utility Fund $ 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 balances of capital accounts payable or retainage payable Change in fair value of investments Total non-cash investing, capital and financing activities 4,182,166 $ (5,643,527) $ 14,570,148 12,494,915 1,769,172 (1,212,166) 1,211,445 (224,478) (42,599) (209,725) (24,835) (327,320) (18,074) (416,019) (227,617) (246,335) (848,258) 83,178 175,476 339,019 172,423 482,756 151,463 367,567 1,426,720 31,252 (736,978) 105,594 267,959 99,392 20,043 128,373 (95,288) 151,331 14,961,287 83,971 13,211,256 84,127 1,414,090 $ 19,143,453 $ 7,567,729 $ $ 13,449,142 $ 6,193,735 $ (326,924) 1,195,393 $ 14,317,611 (2,429,970) 483,800 $ 4,247,565 2,129,070 3,543,160 (192,076) 130,820 $ (61,256) (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, 2025 Business-type Activities Major Enterprise Funds Stadium Storm Drain Fund Utility Fund Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) 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 balances of capital accounts payable or retainage payable Change in fair value of investments Total non-cash investing, capital and financing activities (5,884,789) $ $ (3,542,247) $ (3,010,251) 2,175,645 3,121,487 34,131,367 6,515,067 1,553,019 (15,430) 9,791 (3,261) (1,376) (199,453) (15,430) 1,211,445 (224,478) (77,093) (81,502) (4,574,700) (28,009) (35,124) (4,730) (14,333) (909,034) (451,495) (805,249) (10,674) (6,827) (17,654) (65,992) (445,598) 265,337 (743) (23,337) 8,694 137,942 123,056 168,649 (397,959) 172,423 482,756 (17,654) 296,101 103,334 684,602 38,174 46,773 (354,163) (41,452) (87,296) (6,158) (54,460) 2,305,683 5,143 3,357,611 318,414 (54,460) 35,249,927 155,722 1,786,597 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 $ Total Governmental Activities Internal Service Funds $ (1,236,564) $ 347,360 $ 29,365,138 $ $ - $ 2,588,745 $ 22,231,622 $ $ 63,549 63,549 5,496 $ 2,594,241 (2,948,970) 1,879,058 $ 21,161,710 The accompanying notes are an integral part of the financial statements 43 $ (3,273,339) (1,486,742) (349,392) 132,522 (216,870) (concluded) CITY OF PEORIA, ARIZONA STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2025 Custodial Funds ASSETS Pooled cash and investments Interest receivable Total assets $ 224,825 1,033 225,858 LIABILITIES Accounts payable Total liabilities 3,863 3,863 NET POSITION Restricted for: Individuals and organizations Other governments Total net position 221,901 94 $ 221,995 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, 2025 Total Custodial Funds ADDITIONS Contributions: Individuals Investment earnings: Interest Total additions $ 94,535 7,358 101,893 DEDUCTIONS Recipient payments Total deductions 78,792 78,792 Change in net position 23,101 Net position - beginning of the year Net position - end of the year 198,894 $ 221,995 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 59 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 Subscription-Based Information Technology Arrangements 71 11 Pensions and Other Postemployment Benefits 71 12 Deferred Compensation Plan 83 13 Contingencies, Commitments and Other Claims 83 14 Interfund Transactions, Receivable and Payable Balances 84 15 Stabilization Arrangements 85 16 Segment Information for Enterprise Funds 85 17 Subsequent Event 85 46 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 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. All of the outstanding debt of the Authority will be repaid by revenues of the City. No separate financial statements are prepared for the Authority. 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, 2025 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. Saddleback Community Facilities Districts The Saddleback Community Facilities Districts (Saddleback) were formed by petition to the City Council in 2025. Five separate districts were created to support the Saddleback Master plan. Saddleback’s purpose is to acquire or construct public infrastructure in a specified area of the City. As special purpose districts and separate political subdivisions under the Arizona Constitution, Saddleback can levy taxes and issue bonds independently of the City. Property owned in the designated areas is assessed for Saddleback’s property taxes, and thus for the costs of operating the districts. The City Council serves as the Board of Directors of Saddleback and City management has operational responsibility for Saddleback districts. The City has no liability for the district’s debt. For reporting purposes, the transactions of Saddleback 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 EBT Trust) was formed by petition to the City Council on January 1, 2010. The EBT 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 EBT Trust. For financial reporting purposes, the transactions of the EBT Trust are included as part of the Self-Insurance Fund, an internal service fund in the City’s financial statements. 48 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 City of Peoria Workers’ Compensation Trust The City of Peoria Workers’ Compensation Trust (the WC Trust) was formed by petition to the City Council in 2009. The WC 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 WC Trust. For financial reporting purposes, the transactions of the WC 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. The accounting records of these are maintained by the City and the financial 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. 49 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 The Other Grants 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 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 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 General Obligation (GO) Bond Capital Projects 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. 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 use the economic resources measurement focus. The City currently maintains 2 fiduciary funds. One fund, PLAY Peoria, accounts for monies held on behalf of separate not-for-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. 50 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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. 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. 51 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 • 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. Formal integration of these budgets into the City’s financial systems is employed as a management control device during the year for all funds. 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. 52 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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. The cost of a prepaid item is recorded as an expense when consumed rather than purchased. 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. V. Capital Assets Capital assets, which include property, plant, equipment, right of use leased and subscription 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 Right to use lease assets Right to use SBITA Useful life (Years) 50 20-40 5-40 40 40 20 10 7 3-15 3 Varies Varies 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. Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City is reasonably certain of being exercised―then the lease asset is amortized over the useful life of the underlying asset. Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying IT assets. 53 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 allowed accrued leave is 360 hours for permanent employees and 504 hours for Fire department employees. Employees are allowed to count in service years from other PSPRS or ASRS employers. 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. In accordance with GASB Statement No. 101, Compensated Absences, the City also recognizes a liability for unused sick leave that is expected to be used rather than forfeited, based on historical usage patterns. 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. 54 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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. 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. 55 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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. XIII. 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, 2025:  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 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. 56 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025  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 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, 2025, no tax abatement agreements were noted that were applicable to fiscal year 2025. 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, 2025 was $1,417,076. The RWC Annual Comprehensive Financial Statement is available from the Regional Wireless Cooperative, 200 West Washington Street, 12th Floor, Phoenix, Arizona, 85003-1611. 57 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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. Leases and subscription-based information technology arrangements Leases As lessee, the City recognizes lease liabilities with an initial, individual value of $100,000 or more. The City uses its estimated incremental borrowing rate to measure lease liabilities unless it can readily determine the interest rate implicit in the lease. The City’s estimated incremental borrowing rate is based on the average of recently issued debt. As lessor, the City recognizes lease receivables with an initial, individual value of $100,000 or more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the City charges the lessee) and the implicit rate cannot be determined, the City uses its own estimated incremental borrowing rate as the discount rate to measure lease receivables. The City's estimated incremental borrowing rate is calculated as described above. Subscription-based information technology arrangements The City recognizes subscription liabilities with an initial, individual value of $100,000 or more. The City uses its estimated incremental borrowing rate to measure subscription liabilities unless it can readily determine the interest rate implicit in the arrangement. The City’s estimated incremental borrowing rate is calculated as described above. K. New Accounting Principles 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. GASB Accounting Standards 101 Compensated Absences The requirements of this Statement were implemented in fiscal year ending June 30, 2025 and resulted in no impact on beginning balances. 102 Certain Risk Disclosures The requirements of this Statement were implemented in fiscal year ending June 30, 2025 and resulted in no impact on beginning balances. 103 Financial Reporting Model Improvements The requirements of this Statement are effective for the fiscal year that ends June 30, 2026. 104 Disclosure of Certain Capital Asset Disclosures The requirements of this Statement are effective for the fiscal year that ends June 30, 2026. Effective Dates 58 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 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, 2025, the carrying amount of the City's deposits was $44,975,233 and the bank balance was $43,847,638. 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 $1,127,595 represents deposits in transit, outstanding checks and other reconciling items. The City’s cash with fiscal agent balance at June 30, 2025 was $15,633. The City maintains cash on hand balances in the form of petty cash and change funds. At June 30, 2025, the total amount of these balances was $8,455. 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, 2025, 38.4% 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 A-/A3 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, 2025, the City’s investments include $30.3 million in Commercial Paper and $158.5 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 Asset Backed Securities S&P Ratings range A-1+ to AA+ A-1 to A-1+ BBB+ to AA+ AAA 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, 2025, the City’s investments include 49.2% in U.S. Treasury Notes, 22.8% in Corporate securities, 14.5% in Money Market Investments, 5.8% in Asset Backed Securities, 4.4% in Commercial Paper,1.6% in the State of Arizona local government investment pool,1.5% in U.S. Agency Coupon securities, and 0.2% in Bank Notes. 59 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 There were no investments in any one issuer, excluding U.S. governments that represent 5% or more of total City investments. 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. 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, 2025:      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) All asset backed securities 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, 2025, the City’s total investments of $695,687,735 included the following: Investment Maturities in Years Less than 1 1-2 2-3 3-4 Over 4 Fair Value Investments: U.S Treasury notes $ Bank note 100,590,351 $ - Agency coupon securities 30,324,932 Corporate notes 13,690,892 Asset Backed Securities - 101,117,952 State of Arizona LGIP Total Investments - - Mutual fund-money market 267,056,387 $ 99,545,828 $ 54,418,975 - - - - - - - 38,101,499 6,597,975 1,608,586 13,270,097 10,117,231 15,864,439 - 62,267,731 - $ 141,717,670 $ 76,881,389 1,209,459 30,324,932 158,468,385 40,860,353 101,117,952 $ 342,374,394 10,176,408 - $ 147,764,558 $ - 69,293,510 $ 59,154,063 30,784,509 - 11,155,852 $ $ 1,209,459 10,176,408 Commercial paper 28,665,177 11,155,852 $ 695,687,735 3. DEFICITS IN FUND EQUITY/EXCESS OF EXPENDITURES OVER APPROPRIATIONS At June 30, 2025, the following funds reported a deficit in fund balance/net position.  Non-Major Governmental Fund: Non-Bond Debt Service Fund The Non-Bond Debt Service Fund deficit resulted from the timing of debt service transfers into the fund and the debt service payments being made out of the fund. For the year ended June 30, 2025, 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, 2025 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, 2025. Fund Governmental activities: General fund Receivables $ 20,121,533 Allowance $ 6,621,735 Net $ 13,499,798 Highway user revenue fund 426,481 - 426,481 Transportation sales tax fund 1,836,164 - 1,836,164 GO bond debt service fund 136,898 136,898 - 4,775,799 967,965 3,807,834 398,040 12,734 385,306 27,694,915 7,739,332 19,955,583 137,716 - 137,716 9,725,697.00 352,464.00 9,373,233.00 Wastewater utility fund 3,500,517 221,212 3,279,305 Solid waste utility fund 2,867,766 130,843 2,736,923 5,904 - 5,904 202,491 19,808 182,683 16,302,375 724,327 15,578,048 Other grants fund Other governmental funds Total governmental funds Internal service funds Business-type activities: Water utility fund Stadium fund Storm drain utility fund Total enterprise funds Grand totals $ 44,135,006 $ 8,463,659 $ 35,671,347 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, 2025, significant receivables due to the City included $1,510,421 from the State of Arizona for State Shared Sales Tax revenues recorded in the General fund, $1,486,130 from the State of Arizona for Highway User Revenue Fees recorded in the Highway User Revenue Fund, $1,240,197 from the State of Arizona for WIFA water structure grants, $1,231,187 for WIFA AMI meter system infrastructure grants, and $1,224,546 for WIFA loan receivable. 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, 2025 6. CAPITAL ASSETS A summary of capital asset activity, for the government-wide financial statements, for the year ended June 30, 2025, follows: Balances Additions/ Disposals/ Balances June 30, 2024 Transfers In Transfers Out June 30, 2025 Governmental Activities: Non-depreciable assets: Work in progress $ 44,049,553 $ 55,233,607 $ (14,736,746) $ 84,546,414 Land 456,198,377 11,800,541 (2,610,813) 465,388,105 Intangible asset-SBITA 11,471,665 11,471,665 Total non-depreciable assets 500,247,930 78,505,813 (17,347,559) 561,406,184 Depreciable and amortizable assets: Buildings & improvements Equipment; furniture Vehicles Street system Park system Lease equipment; furniture Lease property Intangible asset-SBITA 205,991,298 48,006,222 39,796,321 549,647,311 145,569,677 5,808,734 880,394 6,844,936 2,140,462 678,382 12,674,166 28,039,583 1,864,468 2,816,517 (2,581,683) (21,650,892) (505,506) 208,131,760 48,684,604 49,888,804 556,036,002 147,434,145 5,808,734 880,394 9,155,947 Total depreciable and amortizable assets at historical cost 1,002,544,893 48,213,578 (24,738,081) 1,026,020,390 (106,133,850) (44,418,114) (28,934,907) (278,674,828) (50,105,510) (5,215,910) (1,957,446) (4,911,526) (26,753,963) (3,665,238) 2,571,732 21,650,892 - (111,349,760) (46,375,560) (31,274,701) (283,777,899) (53,770,748) (658,007) (2,193,187) (711,867) (2,166,773) 505,506 (1,369,874) (3,854,454) Total accumulated depreciation and amortization (511,118,403) (45,382,723) 24,728,130 (531,772,996) Total depreciable assets, net 491,426,490 2,830,855 (9,951) 494,247,394 991,674,420 $ 81,336,668 $ Less accum. depreciation: Buildings & improvements Equipment; furniture Vehicles Street system Park system Less accum. amortization: Lease equipment; furniture Intangible asset-SBITA Governmental activities capital assets, net $ 62 (17,357,510) $ 1,055,653,578 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Business-type Activities: Non-depreciable assets: Work in progress Land Balances June 30, 2024 $ Additions/ Transfers In Disposals/ Transfers Out Balances June 30, 2025 158,768,350 $ 18,824,524 46,636,551 $ (27,660,428) $ 177,744,473 18,824,524 Total non-depreciable assets 177,592,874 46,636,551 (27,660,428) 196,568,997 Depreciable assets: Buildings & improvements Equipment; furniture Vehicles Surface water system Water rights Water system Wastewater system Lease equipment; furniture 80,097,774 23,255,389 24,131,631 124,472,100 12,889,809 464,710,327 446,174,324 12,868 987,409 7,234,313 3,067,120 (10,005,236) (3,248,838) 27,240,847 17,100,387 - (13,665,243) (549,662) - 80,097,774 14,237,562 28,117,106 127,539,220 12,889,809 478,285,931 462,725,049 12,868 Total depreciable assets at historical cost 1,175,744,222 55,630,076 (27,468,979) 1,203,905,319 Less accum. depreciation: Buildings & improvements Equipment; furniture Vehicles Surface water system Water rights* Water system Wastewater system (38,970,272) (20,890,624) (12,869,965) (51,037,971) (4,382,594) (214,667,719) (197,248,824) (2,279,852) (524,107) (2,213,518) (3,069,523) (257,901) (13,528,836) (11,945,635) (3,861) (2,574) (540,071,830) (33,821,946) 26,943,228 (546,950,548) 635,672,392 21,808,130 (525,751) 656,954,771 813,265,266 $ 68,444,681 $ (28,186,179) $ 853,523,768 Less accum. amortization: Lease assets Total accumulated Depreciation/amortization Total depreciable/amortizable assets, net Business-type activities capital assets, net $ 10,005,236 2,723,087 13,665,243 549,662 (6,435) *The City’s agreement with the Gila River Indian Community provides water rights to 7,000 acre-feet of water each year through 2057. 63 (41,250,124) (11,409,495) (12,360,396) (54,107,494) (4,640,495) (214,531,312) (208,644,797) - CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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: $ $ 5,528,068 6,774,218 6,224,954 111,761 26,409,424 156,553 177,745 45,382,723 Water utility * Wastewater utility Storm drain utility Stadium Solid waste Total depreciation and amortization expense $ 14,260,727 12,494,915 3,121,487 2,175,645 1,769,172 $ 33,821,946 * Excludes amoritization of goodw ill of $309,421. 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. Excise Tax/State Shared Revenue Obligations Excise tax/state shared revenue obligations are issued for the construction, acquisition, and equipping of infrastructure, municipal facilities and other capital improvement projects. The obligations are backed by excise tax and state shared revenues that are not restricted by law or other regulation to be expended for other purposes. 64 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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, as part of the issuance in fiscal year 2021, the 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 and tax-exempt general obligation bonds of $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 short-term taxable general obligation bonds of $15,987 and $18,950 in fiscal year 2022 and 2023, respectively. In fiscal year 2025, VNCFD issued tax-exempt general obligation bonds of $5.080,000. 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 and tax exempt general obligation bonds of $3,625,000 and $1,730,000 in fiscal years 2023 and 2025 respectively. The City Council formed the Saddleback Community Facilities Districts 1, 2, 4 and 5 (SCFD) in June 2025, SCFD 3 was created in August 2025. In September 2025, the SCFDs were authorized through an election to issue up to $35,000,000, $75,000,000, $70,000,000, $75,000,000, and $45,000,000 of general obligation bonds in SCFD 1 through 5 respectively to construct public infrastructure within the districts. 65 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 $35,190,000 in Revenue Refunding Bonds issued in 2020, $28,955,000 in Revenue Refunding Bonds issued in 2022 and $115,548,330 in Water Infrastructure Financing Authority loans issued between 2009-2024. 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. At June 30, 2025, $82,721,212 in bonds and loans remain outstanding to be repaid by future water and wastewater revenues. For the fiscal year ended June 30, 2025, the pledged revenues, net of operating expenses available for service of this debt were $39,839,023. The debt principal and interest paid on this debt in fiscal year 2025 was $12,709,535, net of amortized premium. The City has pledged certain revenues to repay $3,220,000 of Pledged Excise Tax 2018 Refunding Obligations and $21,495,000 of Pledged Excise Tax 2022 Refunding Obligations. 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. At June 30, 2025, $445,000 of the Pledged Excise Tax 2018 Obligation and $16,810,000 of the Pledged Excise Tax 2022 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, 2025, the pledged revenues, net of operating expenses available to service this debt were $248,923,264. The debt principal and interest paid on this debt in fiscal year 2025 was $3,502,742. 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, 2025, $3,415,000 of the Pledged Transportation 2018 obligations remained outstanding to be repaid by future revenues. For the fiscal year ended June 30, 2025, the pledged revenues, net of operating expenses available to service this debt were $268,504,568. The debt principal and interest paid on this debt in fiscal year 2024 was $3,503,665. 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. 66 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 G. Tables The following schedule summarizes the City’s long-term liability activity for the year ended June 30, 2025: Governmental activities: Bonds payable: General obligation bonds General obligation WIFA loans 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 SBITA 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* Claims payable Leases payable Deferred bond premium Business-type activities totals Beginning Balance Additions $ 156,295,000 14,582,003 18,965,000 11,799,618 18,835,000 220,476,621 $ 87,055,000 1,458,789 6,810,000 95,323,789 133,834,409 20,245,635 10,199,259 6,014,307 4,003,815 14,900,577 $409,674,623 1,690,517 807,769 24,580,035 10,746,348 2,789,965 $135,938,423 $ $ 49,730,000 42,254,767 $ $ 15,996,199 2,156,318 9,269 4,962,634 $115,109,187 $ 1,224,546 103,334 296,100 482,756 2,106,736 $ $ * Additions and Reductions of compensated absences presented as net change in the liability 67 Ending Balance Due Within One Year 13,560,000 967,862 2,155,000 4,028,267 4,400,000 25,111,129 $ 229,790,000 15,072,930 16,810,000 7,771,351 21,245,000 290,689,281 $ 18,110,000 985,152 2,260,000 4,088,633 4,670,000 30,113,785 13,852,069 24,934,198 629,173 2,125,028 2,145,420 68,797,017 121,672,857 21,053,404 9,845,096 5,385,134 12,625,135 15,545,122 $ 476,816,029 10,266,195 7,914,708 655,480 2,150,695 $ 51,100,863 5,975,000 4,513,100 $ $ 2,521 757,957 11,248,578 16,099,533 2,452,418 482,756 6,748 4,204,677 $ 105,967,345 Reductions 43,755,000 38,966,213 6,280,000 3,384,245 1,199,661 482,756 2,620 $ 11,349,282 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Bonds and loans payable at June 30, 2025 are comprised of the following: Governmental Activities Debt General Obligation Bonds Maturity Dates Net Interest Rate Series 2012A 7/1/12-32 3.32 Series 2015A 7/15/16-35 2.98 30,325,000 19,415,000 Series 2015B 7/15/16-28 2.29 66,425,000 21,465,000 Series 2019 7/15/19-39 2.65 30,420,000 23,140,000 Series 2021 7/15/22-41 1.72 55,880,000 50,190,000 Series 2022 7/15/23-42 3.99 23,810,000 21,710,000 Series 2025 7/15/25-50 4.39 87,055,000 87,055,000 Total General Obligation Bonds Issue Amount Outstanding June 30, 2025 $ $ 14,715,000 6,815,000 $ 308,630,000 $ 229,790,000 $ 6,288,130 $ 4,119,269 $ 20,382,285 $ 15,072,930 $ 21,495,000 $ 16,810,000 $ 21,495,000 $ 16,810,000 $ 5,199,304 $ 3,911,351 WIFA General Obligation Loans WIFA Series 2019 7/1/20-39 1.6 WIFA Series 2021 7/1/22-41 1.85 Total WIFA General Obligations 14,094,155 10,953,661 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 Pledged Transportation 2018 1/15/2026 1.97 Total Direct Purchase and Loan Obligations 3,220,000 445,000 25,755,000 3,415,000 $ 34,174,304 $ $ 22,725,000 $ 7,771,351 Community Facility District Bonds VCFD – Series 2020 7/15/21-26 0.87 VWCFD – Series 2016 7/15/18-29 4.15 3,000,000 1,455,000 VWCFD – Series 2019 7/15/20-29 4.00 2,590,000 1,440,000 VNCFD - Series 2024 7/15/25-49 4.93 5,080,000 5,080,000 MCFD – Series 2023 7/15/23-47 4.36 3,625,000 3,460,000 MCFD – Series 2025 7/15/25-47 4.95 1,730,000 1,730,000 Total Community Facility District Bonds $ 68 38,750,000 $ 8,080,000 21,245,000 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Business-Type Activities Debt Revenue Bonds Maturity Dates Net Interest Rate Issue Amount Outstanding June 30, 2025 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 16,475,000 27,280,000 $ 64,145,000 $ 43,755,000 $ $ 1,250,023 WIFA Loans WIFA Series 2009 7/1/10-29 3.27 WIFA Series 2015 7/15/16-35 2.40 14,000,000 8,510,547 WIFA Series 2017 7/15/18-36 2.65 45,525,775 29,205,643 WIFA Series 2023 9/15/23-43 3.34 35,075,000 Total WIFA loans 4,371,597 - $ 98,972,372 $ 38,966,213 The following table discloses the bond debt service requirements as of June 30, 2025, segregating principal and interest, for the next five years and in five-year increments thereafter. Governmental Activities* Bonds and General Obligation Loans Fiscal year 2026 Principal $ 26,025,152 Notes from Direct Borrowings and Direct Placements Interest $ 9,185,769 Business-type Activities* Principal $ Interest 4,088,633 $ Principal 234,789 $ Interest 11,454,523 $ 4,331,591 2027 23,067,753 9,553,083 239,328 153,258 11,935,997 3,860,022 2028 15,105,669 8,835,123 250,360 143,018 10,442,017 3,455,739 2029 15,733,907 8,218,197 261,738 132,308 7,930,965 3,154,247 2030 13,537,471 7,622,137 273,473 121,113 7,373,901 2,892,984 2031-2035 65,942,685 29,864,927 1,556,554 419,574 36,800,166 10,956,684 2036-2040 58,459,358 18,938,149 1,101,265 78,811 29,036,348 5,324,631 2041-2045 36,310,809 10,227,198 - - 18,178,633 1,166,590 2046-2050 26,875,000 4,322,451 - - - - 2051 5,530,000 124,425 - - - - Totals $ 286,587,804 $ 106,891,459 $ 7,771,351 $ 1,282,871 $ 133,152,550 $ 35,142,488 *Includes required principal and estimated interest payments for approved WIFA loans that have not fully drawn as of 6/30/25, the principal payments are contractual and the loans are expected to draw in FY2026. 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. 69 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 $4,000,000 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 $25,000 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 $5,000,000 for fiscal year 2025. 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. 70 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 $9,845,096 reported in the Self-Insurance Fund at June 30, 2025, 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 $1,789,685 for liability/property claims, $6,128,761 for workers’ compensation claims and $1,926,650 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 2024: Risk management Beginning of Fiscal Year Liability Current Year Claims and Changes in Estimates Claims Payments Balance at Fiscal Year-end $ $ $ $ 1,206,273 2,444,882 (1,306,586) 2,344,569 Workers' comp 6,248,614 1,073,033 (1,331,491) 5,990,156 Health insurance 1,687,988 20,252,586 (20,076,040) 1,864,534 $ Fiscal Year 2025: Risk management 9,142,875 $ 23,770,501 $ (22,714,117) $ 10,199,259 Beginning of Fiscal Year Liability Current Year Claims and Changes in Estimates Claims Payments Balance at Fiscal Year-end $ $ $ $ Workers' comp 2,344,569 5,990,156 Health insurance 1,196,811 1,864,534 $ 10,199,259 1,385,213 (1,058,206) 21,998,011 $ 24,580,035 (1,940,097) 6,128,761 (21,935,895) $ (24,934,198) 1,789,685 1,926,650 $ 9,845,096 9. LEASES A. City as Lessee The City has entered into lease agreements for trash compactors and body cameras. Lease terms were five to ten years. The City also entered into a sublease agreement for the right to use hanger space with a lease term of ten years. The lease assets are presented in the Government-wide financial statements and listed separately in Note 6. 71 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 The total amount of lease assets and the related accumulated amortization are as follows: Total intangible right-to-use lease assets Governmental Business-type Activities Activities $ Less: accumulated amortization 6,689,128 $ 12,868 (1,369,874) Carrying Value $ 5,319,254 (6,435) $ 6,433 The following schedule details minimum lease payments to maturity for the County’s leases payable at June 30, 2025: Governmental Activities Business-type Activities* Fiscal year 2026 Principal $ 655,480 Interest $ Principal 164,797 $ Interest 2,620 $ 218 2027 679,590 144,564 2,725 113 2028 704,627 123,597 1,403 16 2029 732,356 101,816 - - 2030 761,150 79,177 - - 2031-2035 Totals 1,851,931 $ 5,385,134 92,866 $ 706,817 - $ 6,748 $ 347 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 $312,824 of interest earnings in fiscal year 2025. Lease payments totaled $210,100 resulting in an interest receivable of $102,724. 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 $77,120 of interest earnings in fiscal year 2025. Lease payments totaled $61,831 resulting in an interest receivable of $15,289. 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 2025, the City recognized $22,590 in payments against the receivable and $17,376 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% and 2.47-4.40% on the sublessees. In fiscal year 2025 the City recognized $29,052 in payments against the receivable and $25,063 of interest earnings. In 2025, the City leased property for Western Maricopa Education Center Career and Technical District. The original lease term, including available extensions, is 10 years. The lease payments are fixed for the first three years and increase 2.5% every year for the remainder of the lease term. The implied interest rate on the lease is 4.40% which resulted in $38,026 of interest earnings and an interest receivable of $38,026. There were no lease payments made in fiscal year 2025. 72 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 10. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS The City has entered into various subscription-based information technology arrangements (SBITA) to provide software solutions. The SBITA terms range from two to thirteen years including options to extend that are reasonably certain to be exercised. The City had contractual commitments related to subscription-based information technology arrangements for which the subscription term had not yet commenced at June 30, 2025, for Workday, Inc. At June 30, 2025, the City had made payments of $481,278 to Workday, Inc. and had remaining contractual commitments with Workday, Inc. of $12,142,786 , including the subscription liabilities that will be recognized at the commencement of the subscription terms. SBITA assets are presented in the Government-wide financial statements and listed separately in Note 6. The total amount of subscription assets and the related accumulated amortization are as follows: Governmental Activities Total intangible right-to-use subscription assets $ Less: accumulated amortization 20,627,612 (3,854,454) Carrying Value $ 16,773,158 The following schedule details minimum subscription payments to maturity for the County’s subscriptions liability at June 30, 2025: Governmental Activities Fiscal year 2026 Principal $ 2,150,695 Interest $ 542,427 2027 1,646,046 443,542 2028 1,205,798 379,760 2029 629,197 335,142 2030 655,819 307,710 2031-2035 4,091,437 1,061,672 2036-2040 Totals 2,246,143 150,739 $ 12,625,135 $ 3,220,992 11. 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. 73 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 A summary of pension and other postemployment benefit related items as of and for the year ended June 30, 2025, is presented below: Plan ASRS Governmental Activities Business-Type Activities PSPRS Governmental Activities Net Pension and Other Postemployment Benefits Liability Other Postemployment Benefits Asset $ $ $ 67,341,255 16,099,533 54,331,602 137,772,390 Deferred Outflows of Resources 2,595,200 620,443 $ 1,578,189 4,793,832 $ $ 12,852,983 3,072,815 39,397,780 55,323,578 Deferred Inflows of Resources Pension and Other Postemployment Expense $ $ $ 5,656,285 1,352,270 5,934,651 12,943,206 $ 6,235,317 1,221,339 12,790,693 20,247,349 The City of Peoria reported $29,609,468 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 30 years, age 55 Sum of years and age equals 80 10 years, age 62 25 years, age 60 5 years, age 50* 10 years, age 62 Any years, age 65 5 years, age 50* Any years, age 65 Final average salary is based on Highest consecutive 36 months of last 120 months Highest consecutive 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 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. 74 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 $150 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 12.27 percent (12.12 percent for retirement & health insurance benefits and 0.15 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 12.27 percent (12.05 percent for retirement, 0.07 percent for health insurance premium benefit, and 0.15 percent for longterm disability) of the members’ annual covered payroll. These percentages led to City’s contributions for the year ended June 30, 2025 of $9,089,084, $52,800, and $113,143 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 10.19 percent (10.14 percent for retirement, 0.00 percent for health insurance premium benefit, and 0.05 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, 2024. 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, 2023, to the measurement date of June 30, 2024. 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, 2024, and the change from its proportion measured as of June 30, 2023. At June 30, 2025, 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, 2024, and the change from its proportion measured as of June 30, 2023 was: 75 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Pension/OPEB Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2025, the City of Peoria recognized the following pension and OPEB expense for ASRS. ASRS Pension/OPEB expense Pension $ 7,861,075 Health insurance premium benefit (464,273) Long-term disability 59,854 Deferred outflows/inflows of resources. At June 30, 2025, the City of Peoria reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: Deferred Health insurance premium benefit Deferred Deferred Long-term disability Deferred Deferred outflows of inflows of outflows of inflows of outflows of inflows of resources resources resources resources resources resources Pension Deferred 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 $ 4,656,820 $ - $ 93,056 $ 776,452 $ 50,520 $ 36,590 - - - 33,355 9,942 82,254 - 5,327,730 - 221,045 - 15,007 1,839,432 455,273 16,814 50,595 4,185 10,255 9,089,084 - 52,800 - 113,143 - $ 15,585,336 $ 5,783,003 162,670 $ 1,081,447 $ $ 177,790 $ 144,106 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, 2026. 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 2026 2027 2028 2029 2030 Thereafter $ Health insurance premium benefit Pension (1,912,775) $ (602,174) 4,952,349 (142,729) (1,348,624) (141,452) (977,701) (69,651) (15,571) - 76 Long-term disability $ (26,042) (4,258) (23,732) (21,970) (9,003) 5,546 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial valuation date June 30, 2023 Actuarial roll forward date June 30, 2024 Actuarial cost method Entry Age Normal Investment rate of return 7.0% 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, 2023, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2020. The long-term expected rate of return on ASRS pension plan investments was determined to be 7 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: Asset Class Target Allocation Long-Term expected geometric real rate of return Public equity 44% 4.48% Credit 23% 4.40% Real estate 17% 6.05% Private equity 10% 6.11% Interest rate sensitivity 6% -0.45% Total 100% Discount Rate. The discount rate used to measure the ASRS total pension/OPEB liability was 7 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension/OPEB liability. 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: 77 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Net pension liability Net insurance premium benefit liability (asset) Net long-term disability liability 1% Decrease (6.0%) $ 127,743,872 (2,337,751) 47,273 Current Discount Rate (7.0%) $ 83,427,048 (3,215,643) 13,740 1% Increase (8.0%) $ 46,492,847 (3,962,027) (19,249) 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 On or After January 1, 2012 and before July 1, 2017 15 years of service and age 52.5 On or after July 1, 2017 15 years of service and 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 4.0% 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% Before January 1, 2012 20 years of service and any age or 15 years of service and age 62 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 78 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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, 2025, the following employees were covered by the agent pension plan’s benefit terms: PSPRS - POLICE PSPRS - FIRE Pension Health Pension Health Inactive employees or beneficiaries 120 120 68 68 currently receiving benefits Inactive employees entitled to but not yet receiving benefits 47 25 16 12 Active employees 109 109 128 128 Total 276 254 212 208 79 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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, 2025, are indicated below. Rates are a percentage of active members’ annual covered payroll. PSPRS PSPRS Police Fire Active members - pension 7.65% 7.65% City of Peoria Pension 34.37% 30.81% Health Insurance 0.22% 0.22% In addition, the City of Peoria was required by statute to contribute at the actuarially determined rate of 19.53 percent for the PSPRS Police, and 13.29 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 June 30, 2025 were: PSPRS - Police PSPRS - Fire Pension: $ Contributions made 13,526,042 $ 8,531,811 Health insurance premium benefit: 56,035 Contributions made 26,270 Asset and Liability. At June 30, 2025, the City of Peoria reported the following assets and liabilities. PSPRS - Police PSPRS – Fire Net pensionliability $ 30,608,004 23,723,598 Net OPEB asset $ (679,465) (898,724) The net assets and net liabilities were measured as of June 30, 2024, and the total liability used to calculate the net asset or liability was determined by an actuarial valuation as of that date. 80 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows: Actuarial Valuation Date June 30, 2024 Measurement Date June 30, 2024 Actuarial Cost Method Entry Age Normal Inflation Salary Increases 2.50% for pensions/not applicable for OPEB 3.25%-15.00%, including inflation, for pensions/not applicable for OPEB Tier 1/2 Investment Rate of Return 7.20% Tier 3 Investment Rate of Return 7.00% Active Lives: PubS-2010 Employee mortality, adjusted by a factor of 1.03 for male members and 1.08 for female members, with generational improvements using 85% of the most recent projection scale (currently Scale MP-2021). 100% of active deaths are assumed to be in the line of duty. Mortality Rates Inactive Lives: PubS-2010 Healthy Retiree mortality, adjusted by a factor of 1.03 for male retirees and 1.11 for female retirees, with generational improvements using 85% of the most recent projection scale (currently Scale MP-2021) Beneficiaries: PubS-2010 Survivor mortality, adjusted by a factor of 0.98 for male beneficiaries and adjusted by a factor of 1.06 for female beneficiaries, with generational improvements using 85% of the most recent projection scale (currently Scale MP-2021). Disabled Lives: PubS-2010 Disabled mortality, adjusted by a factor of 1.08 for male disabled members and 1.01 for female disabled members, with generational improvements using 85% of the most recent projection scale (currently Scale MP2021) Actuarial assumptions used in the June 30, 2024 valuation were based on the results of the 2022 experience study. 81 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 The long-term expected rate of return on PSPRS plan investments was determined to be 7.20 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Allocation Long-Term Expected Geometric Real Rate of Return* U.S. Public Equity 24% 3.62% International Public Equity 16% 4.47% Global Private Equity 27% 7.05% Core Bonds 6% 2.44% Private Credit 20% 6.24% Diversifying Strategies 5% 3.15% Cash - Mellon 2% 0.89% Total 100% Asset Class Discount Rates. At June 30 2024, the discount rate used to measure the PSPRS total pension/OPEB liabilities was 7.20 percent, which was the same as the discount rate used as of June 30, 2023. 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. 82 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Changes in the Net Pension/OPEB Liability Pension Increase (decrease) Total Pension Liability PSPRS - POLICE Balances at June 30, 2023 $182,056,123 Changes for the year: Service cost 3,126,970 Interest on the total liability 13,046,914 Differences between expected and actual experience in the measurement of the liability 4,826,289 Changes of assumptions or other inputs Contributions – employer Contributions – employee Net investment income Benefit payments, including refunds of employee contributions (7,951,904) Administrative expense Net changes 13,048,269 Balances at June 30, 2024 $195,104,392 Plan Fiduciary Net Position Net Pension Liability Health insurance premium benefit Increase (decrease) Plan Fiduciary Net Total OPEB Net OPEB Liability Position Asset $143,011,535 $39,044,588 $2,159,357 3,126,970 13,046,914 51,444 156,169 - 51,444 156,169 12,915,087 1,171,088 15,428,021 4,826,289 (12,915,087) (1,171,088) (15,428,021) (38,274) - 49,451 268,241 (38,274) (49,451) (268,241) (7,951,904) (77,439) 21,484,853 $164,496,388 77,439 (8,436,584) $30,608,004 (83,586) 85,753 $2,245,110 (83,586) (1,204) 232,902 $ 2,924,575 1,204 (147,149) $(679,465) Plan Fiduciary Net Position Net Pension Liability Health insurance premium benefit Increase (decrease) Plan Total OPEB Net OPEB Fiduciary Net Liability Position Asset $123,193,418 $29,139,083 $1,717,500 4,096,105 11,029,311 56,958 125,837 - 56,958 125,837 9,453,346 1,193,841 13,143,341 3,188,467 (9,453,346) (1,193,841) (13,143,341) (157,953) 50,741 235,052 (157,953) (50,741) (235,052) (6,487,460) (61,160) 61,160 (5,415,485) $23,723,598 (53,457) (28,615) $1,688,885 (53,457) (977) 231,359 $ 2,587,609 977 (259,974) $(898,724) - Pension Increase (decrease) Total Pension Liability PSPRS - FIRE Balances at June 30, 2023 $152,332,501 Changes for the year: Service cost 4,096,105 Interest on the total liability 11,029,311 Differences between expected and actual experience in the measurement of the liability 3,188,467 Changes of assumptions or other inputs Contributions – employer Contributions – employee Net investment income Benefit payments, including refunds of employee contributions (6,487,460) Administrative expense Tiers 1 & 2 Adjustment Net changes 11,826,423 Balances at June 30, 2024 $164,158,924 - 17,241,908 $140,435,326 83 - $ 2,691,673 $ 2,356,250 $(532,316) $(638,750) CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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: PSPRS – Police Rate Net pension (asset) liability Net OPEB (asset) liability 1% Decrease Current Discount Rate 6.20% $ 58,203,221 (418,782) $ 7.20% 30,608,004 (679,465) $ 8.20% 8,192,281 (898,529) PSPRS – Fire Rate Net pension (asset) liability Net OPEB (asset) liability 6.20% $ 48,151,969 (696,094) $ 7.20% 23,723,598 (898,724) $ 8.20% 3,852,629 (1,069,469) 1% Increase 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, 2025, the City of Peoria recognized the following pension and OPEB expense: Pension Expense $ 13,043,807 PSPRS – Governmental activities OPEB Expense $ (253,114) Deferred Outflows/Inflows of Resources. At June 30, 2024, the City of Peoria reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources: 84 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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 6,127,653 $ 21,839 1,118,464 Net difference between projected and actual earnings on plan investments 20,772,159 10,176 2,489,240 31,525 56,035 $ 94,120 311,544 - - $ $ 27,909 2,467,401 13,526,042 Total $ $ - - Contributions subsequent to the measurement date Premium Deferred Deferred Inflows of Outflows of Resources Resources $ 343,069 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 8,024,051 $ 411,322 1,910,910 Net difference between projected and actual earnings on plan investments Contributions subsequent to the measurement date - 18,466,772 $ - 2,083,754 8,531,811 Total $ Premium Deferred Deferred Outflows of Inflows of Resources Resources $ 2,495,076 85 $ 25,030 $ 562,409 15,429 18,370 - 26,487 26,270 - 66,729 $ 607,266 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 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, 2026. 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: 2026 2027 2028 2029 2030 Thereafter Pension PSPRS - Police PSPRS - Fire $ 1,301,761 $ 386,961 3,946,862 3,284,687 490,883 850,273 (982,629) 1,099,317 1,363,152 455,495 PSPRS - Police $ (175,308) (43,511) (63,367) (22,798) - OPEB PSPRS - Fire $ (144,029) (73,840) (126,207) (120,050) (82,116) (22,565) 12. 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. 13. 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. 86 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 The City had the following significant commitments as of June 30, 2025:              $7,160,566 in the Streets Impact Fee Fund for 67th Avenue widening construction. $5,259,977 in the Half Cent Tax Fund for downtown redevelopment. $21,985,191 in the GO Bond and Outside Sources Funds for storm drain construction. $2,459,326 in the Excise Tax Bond Fund for Lake Pleasant Pkwy widening infrastructure. $1,551,019 in the GO Bond Capital Project Fund for public safety building improvements. $21,067,894 in the Solid Waste Revenue Bond Fund for fleet shop construction. $1,846,835 in the Water Utility Funds for upgrade and recondition of water distribution and production facilities. $2,769,121 in the Water Revenue Bond Fund for CAP pump station rehabilitation. $4,661,145 in the Wastewater Revenue Bond Fund for Beardsley Water Treatment Plant Expansion. $1,378,049 in the Water Utility Funds for water infrastructure repair and maintenance. $4,262,352 in the Water Revenue Bond Fund for reclaimed water line construction. $4,075,034 in the WIFA Fund for well design and construction. $5,126,808 in the Water Revenue Bond and Outside Sources Funds for reservoir and booster pump construction. 14. INTERFUND TRANSACTIONS, RECEIVABLE AND PAYABLE BALANCES At June 30, 2025, there were interfund loans from the General Fund to the GO Bond Capital Projects Fund and the Non-Bond Debt Service 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 2025 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, 2025: Fund Governmental funds: General Fund Highway User Revenue Fund Transportation Sales Tax Fund Other Grant Fund Non-Bond Capital Projects Fund GO Bond Capital Projects 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 $ 14,572,645 65 6,903,664 1,792,421 8,980,286 7,893,578 1,204,235 41,346,894 Transfers in $ 3,179,512 130,347 20,518 3,330,377 64,693 $ Grand totals 87 44,741,964 1,762,986 1,000,000 7,309,955 10,072,941 2,130,133 3,572,513 5,791,057 15,008,448 26,502,151 8,166,872 $ 44,741,964 CITY OF PEORIA, ARIZONA NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 15. 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, 2025: 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 12,835,477 2,932,997 5,613,822 11,458,601 1,116,803 33,957,700 5,459,615 1,316,861 2,166,957 11,021,249 772,416 20,737,098 Solid Waste Utility Fund: Working capital policy reserve Capital equipment replacement 3,814,841 3,205,838 7,020,679 Stadium Fund: Capital equipment replacement Total enterprise funds $ Internal Service Funds: Capital equipment replacement Risk management purpose Total internal service funds $ $ 660,676 62,376,153 24,876,153 2,359,617 27,235,770 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 EVENT On August 27, 2025 the City was the successful bidder for 834.5 acres in the State Land Public Auction with a final bid of $46.7 million. The land is located within the Peoria Innovation Core (PIC), northwest of the intersection of Loop 303 and Lake Pleasant Parkway. The purchase will allow the city to lead all zoning and entitlement efforts, design and construct backbone infrastructure including roads and utilities. This Arizona State Trust Land supports the City Council’s priority of Economic Development. 88 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, 2025 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 Reporting Fiscal Year (Measurement Date) 2025 (2024) 2024 (2023) 2023 (2022) 2022 (2021) 2021 (2020) 2020 (2019) 0.521370% $ 83,427,048 $ 75,428,083 0.504160% $ 81,580,373 $ 66,139,235 0.514220% $ 83,932,124 $ 63,959,887 0.512820% $ 67,382,271 $ 57,978,944 0.523230% $ 90,657,551 $ 57,428,297 0.532380% $ 77,467,484 $ 56,417,665 110.60% 76.93% 123.35% 75.47% 131.23% 74.26% 116.22% 78.58% 157.86% 69.33% 137.31% 73.24% 2025 (2024) 2024 (2023) 2023 (2022) 2022 (2021) 2021 (2020) 2020 (2019) 0.532190% $ (3,215,643) $ 75,428,083 0.513650% $ (2,773,336) $ 66,139,235 0.523820% $ (2,923,429) $ 63,959,887 0.522130% $ (2,543,860) $ 57,978,944 0.532290% $ (376,859) $ 57,428,297 0.541370% $ (149,610) $ 56,417,665 -4.26% 137.51% -4.19% 134.37% -4.57% 137.79% -4.39% 130.24% -0.66% 104.33% -0.27% 101.62% 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 2019 (2018) $ $ 0.546250% 76,182,651 54,343,055 2018 (2017) $ $ 140.19% 73.40% 0.571460% 89,022,329 53,419,833 166.65% 69.92% Reporting Fiscal Year (Measurement Date) 2019 (2018) $ $ 0.554120% (199,533) 54,343,055 2018 (2017) $ $ -0.37% 102.20% 0.577940% (314,630) 53,419,833 -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) 2025 (2024) 2024 (2023) 2023 (2022) 2022 (2021) 2021 (2020) 2020 (2019) 0.527070% $ 13,740 $ 75,428,083 0.507980% $ 66,564 $ 66,139,235 0.517680% $ 47,813 $ 63,959,887 0.517490% $ 106,822 $ 57,978,944 0.528200% $ 400,699 $ 57,428,297 0.537820% $ 350,360 $ 56,417,665 0.02% 98.77% 0.10% 93.70% 0.07% 95.40% 0.18% 90.38% 0.70% 68.01% 0.62% 72.85% 2019 (2018) $ $ 0.550920% 287,858 54,343,055 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 89 0.53% 77.83% 2018 (2017) $ $ 0.569260% 206,344 53,419,833 0.39% 84.44% 2017 (2016) $ $ 0.542460% 87,558,493 50,820,065 172.29% 67.06% 2016 (2015) $ $ 0.526670% 82,036,552 47,561,194 172.49% 68.35% CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2025 Reporting Fiscal Year (Measurement Date) 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 2025 (2024) $ 3,126,970 13,046,914 - 2024 (2023) $ 3,304,293 12,333,779 - 2023 (2022) 2022 (2021) 2021 (2020) $ $ $ 3,355,365 11,719,465 - 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) 2,658,484 7,450,121 6,569,592 $ 2,557,053 7,075,581 - 4,826,289 - 2,211,011 - 1,419,354 1,677,907 749,764 - 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 - (7,951,904) 13,048,269 182,056,123 $ 195,104,392 (7,582,297) 10,266,786 171,789,337 $ 182,056,123 (7,136,011) 11,036,080 160,753,257 $ 171,789,337 (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 $ 12,915,087 1,171,088 15,428,021 $ 11,196,855 1,390,224 10,256,846 $ 35,785,241 1,317,660 (4,957,000) $ $ $ $ $ $ 4,729,872 1,732,502 320,234 $ 3,254,563 1,689,030 1,821,818 (7,951,904) (77,439) 21,484,853 143,011,535 $ 164,496,388 (7,582,297) (62,906) 15,198,722 127,812,813 $ 143,011,535 (7,136,011) (89,216) 11,388 24,932,062 102,880,751 $ 127,812,813 (6,377,577) (106,627) 25,833,349 77,047,402 $ 102,880,751 (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 30,608,004 39,044,588 43,976,524 57,872,506 74,828,065 68,428,541 64,643,144 63,267,924 57,431,250 44,628,212 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 84.31% 78.55% 74.40% 64.00% 50.73% 51.65% 50.65% 49.55% 47.93% 53.72% $ 19,699,206 $ 18,932,033 $ 17,697,415 $ 16,653,104 $ 17,044,648 $ 16,897,694 $ 16,153,506 $ 15,387,963 $ 13,992,947 $ 13,449,859 155.38% 206.24% 248.49% 347.52% 439.01% 404.96% 400.18% 411.15% 410.43% 331.81% See accompanying notes to pension/OPEB plan schedules 90 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABIILTY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2025 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) 2025 (2024) $ 4,096,105 11,029,311 - 2024 (2023) $ 4,031,688 10,434,318 - 2023 (2022) 2022 (2021) 2021 (2020) $ $ $ 3,710,281 9,592,431 - 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) 2,379,652 5,434,649 6,700,272 $ 2,056,517 4,952,998 - 3,188,467 - 137,267 - 4,163,638 1,398,720 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 - (6,487,460) 11,826,423 152,332,501 $ 164,158,924 (6,320,322) 8,282,951 144,049,550 $ 152,332,501 (5,016,815) 13,848,255 130,201,295 $ 144,049,550 (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 $ 9,453,346 1,193,841 13,143,341 $ 11,280,253 1,493,247 8,688,400 $ 14,331,947 1,401,092 (4,380,045) $ $ $ $ $ $ 3,162,518 1,375,202 298,901 $ 1,866,365 1,238,541 1,710,692 (6,487,460) (61,160) 17,241,908 123,193,418 $ 140,435,326 (6,320,322) (45,251) (20,317) 15,076,010 108,117,408 $ 123,193,418 (5,016,815) (78,925) 6,257,254 101,860,154 $ 108,117,408 (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 23,723,598 29,139,083 35,932,142 28,341,141 46,269,212 39,917,601 35,298,399 35,060,592 33,102,024 20,108,398 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 85.55% 80.87% 75.06% 78.23% 61.60% 64.09% 64.94% 63.44% 61.08% 70.82% $ 19,343,541 $ 18,173,597 $ 17,385,094 $ 13,051,041 $ 13,658,235 $ 13,822,178 $ 12,085,624 $ 11,543,146 $ 11,796,929 $ 11,068,029 122.64% 160.34% 206.68% 217.16% 338.76% 288.79% 292.07% 303.74% 280.60% 181.68% See accompanying notes to pension/OPEB plan schedules 91 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2025 Reporting Fiscal Year (Measurement Date) 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 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) 2025 (2024) $ $ $ $ 51,444 156,169 - 2024 (2023) $ 56,031 158,758 - 2023 (2022) 2022 (2021) 2021 (2020) $ $ $ 60,471 154,251 - 64,399 163,960 - 66,728 153,939 - 2020 (2019) $ 44,231 167,216 - 2019 (2018) $ 45,757 164,184 - 2018 (2017) $ 50,779 167,590 6,476 (38,274) - (163,524) - (84,366) 48,624 (271,397) - 35,618 - (351,117) 25,181 (103,677) - 19,591 (159,009) (83,586) 85,753 2,159,357 2,245,110 (81,700) (30,435) 2,189,792 2,159,357 (83,482) 95,498 2,094,294 2,189,792 (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 49,451 268,241 (83,586) (1,204) 232,902 2,691,673 2,924,575 $ $ $ 29,566 191,467 (81,700) (1,184) 138,149 2,553,524 2,691,673 $ $ $ 53,232 (104,779) (83,482) (1,865) (136,894) 2,690,418 2,553,524 $ $ $ 52,644 581,519 (88,596) (2,391) 543,176 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) (679,465) (532,316) (363,732) (596,124) 78,686 (96,020) 231,881 288,666 Plan fiduciary net position as a percentage of the total OPEB liability 130.26% 124.65% 116.61% 128.46% 96.47% 104.67% 89.74% 87.11% $ 19,699,206 $ 18,932,033 $ 17,697,415 $ 16,653,104 $ 17,044,648 $ 16,897,694 $ 16,153,506 $ 15,387,963 -3.45% -2.81% -2.06% -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 92 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AGENT-EMPLOYER PLANS JUNE 30, 2025 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 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) 2025 (2024) $ $ $ $ 56,958 125,837 - 2024 (2023) $ 57,292 127,145 - 2023 (2022) 2022 (2021) 2021 (2020) $ $ $ 56,633 129,786 - 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 (157,953) - (148,171) - (157,630) 14,185 (184,074) - (63,904) - (193,678) 16,414 (49,429) - 175,598 (140,066) (53,457) (28,615) 1,717,500 1,688,885 (54,748) (18,482) 1,735,982 1,717,500 (56,491) (13,517) 1,749,499 1,735,982 (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 50,741 235,052 (53,457) (977) 231,359 2,356,250 2,587,609 $ $ $ 26,223 166,716 (54,748) (915) 137,276 2,218,974 2,356,250 $ $ $ 41,562 (90,772) (56,491) (1,616) (107,317) 2,326,291 2,218,974 $ $ $ 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) (898,724) (638,750) (482,992) (576,792) (34,874) (96,151) 61,143 79,902 Plan fiduciary net position as a percentage of the total OPEB liability 153.21% 137.19% 127.82% 132.97% 101.93% 105.52% 96.63% 95.41% $ 19,343,541 $ 18,173,597 $ 17,385,094 $ 13,051,041 $ 13,658,235 $ 13,822,178 $ 12,085,624 $ 11,543,146 -4.65% -3.51% -2.78% -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 93 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION/OPEB CONTRIBUTIONS JUNE 30, 2025 2025 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 $ 9,089,084 2024 $ 8,731,145 2023 $ 7,956,550 2022 $ 7,387,367 2021 $ 6,696,568 2020 $ Reporting Fiscal Year 2019 2018 $ 6,307,495 $ 5,923,393 $ 5,758,658 $ $ $ 6,307,495 56,417,665 $ $ 5,923,393 54,343,055 $ $ 5,758,658 53,419,833 5,513,977 $ $ 50,820,065 10.78% 10.85% 9,089,084 $ $ 75,428,083 8,731,145 $ $ 72,578,096 7,956,550 $ $ 66,139,235 7,387,367 $ $ 63,959,887 6,696,568 $ $ 57,978,944 6,575,540 $ $ 57,428,297 12.05% 12.03% 12.03% 12.01% 11.55% 11.45% $ 52,800 $ 79,835 $ 73,427 $ 129,172 $ 284,095 $ 11.18% 10.90% 281,400 $ 259,521 $ 239,109 $ $ 259,521 56,417,665 $ $ 239,109 54,343,055 52,800 $ $ 75,428,083 79,835 $ $ 72,578,096 73,427 $ $ 66,139,235 129,172 $ $ 63,959,887 284,095 $ $ 57,978,944 281,400 $ $ 57,428,297 0.07% 0.11% 0.11% 0.21% 0.49% 0.49% 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 $ 113,143 $ 108,868 $ 93,446 $ 116,867 $ 104,363 $ 97,627 113,143 $ $ 75,428,083 108,868 $ $ 72,578,096 93,446 $ $ 66,139,235 116,867 $ $ 63,959,887 104,363 $ $ 57,978,944 97,627 $ $ 57,428,297 0.15% 0.15% 0.14% 0.19% 0.18% 0.17% 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 94 2016 6,575,540 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 2017 $ 90,268 $ 86,949 $ $ 90,268 56,417,665 $ $ 86,949 54,343,055 0.16% 0.16% 5,513,977 CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION/OPEB CONTRIBUTIONS JUNE 30, 2025 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 2025 $ 7,416,276 2024 $ 6,833,655 2023 $ 9,130,920 2022 $ 8,296,548 2021 $ 7,806,975 2020 $ $ 8,917,938 $ 5,039,558 $ $ $ 7,436,675 16,897,694 $ $ 6,634,245 2,283,693 16,153,506 $ $ 5,039,558 15,387,963 4,696,546 $ (290,167) $ 13,992,947 32.75% 33.56% 36,132,348 $ (27,835,800) $ 17,697,415 8,278,054 $ (471,079) $ 16,653,104 7,646,229 $ $ 17,044,648 62.99% 68.59% 61.77% 204.17% 49.71% 44.86% 6,511,036 $ 6,238,996 $ 6,362,944 $ 4,776,681 $ 5,881,182 8,909,853 $ (3,273,207) $ 18,294,859 9,207,150 $ (2,696,114) $ 19,343,541 11,224,720 $ (4,985,724) $ 18,173,597 14,195,735 $ (7,832,791) $ 17,385,094 7,563,149 $ (2,786,468) $ 13,051,041 5,881,182 $ $ 13,658,235 48.70% 47.60% 61.76% 81.65% 57.95% 43.06% 44.01% $ 4,714,745 $ $ 4,714,745 13,822,178 41.07% $ 5,721,681 $ $ 3,794,886 1,926,795 12,085,624 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 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 $ 47,471 $ 70,917 $ 39,757 $ 61,941 $ 55,479 $ 59,656 $ 65,900 $ 79,152 $ $ 65,900 16,897,694 $ $ 79,152 16,153,506 47,471 $ $ 21,577,761 70,917 $ $ 19,699,206 39,757 $ $ 18,932,033 61,941 $ $ 17,697,415 58,825 $ (3,346) $ 16,653,104 59,656 $ $ 17,044,648 0.22% 0.36% 0.21% 0.35% 0.35% 0.35% $ 40,249 $ 61,899 $ 30,895 $ 45,201 $ 33,933 $ 51,931 40,249 $ $ 18,294,859 61,899 $ $ 19,343,541 30,895 $ $ 18,173,597 45,201 $ $ 17,385,094 53,727 $ (19,794) $ 13,051,041 51,931 $ $ 13,658,235 0.22% 0.32% 0.17% 0.26% 0.41% 0.38% 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 95 2016 7,436,675 11,695,201 $ (2,564,281) $ 18,932,033 $ 2017 $ 13,511,585 $ (6,677,930) $ 19,699,206 5,636,646 2018 7,646,229 13,592,166 $ (6,175,890) $ 21,577,761 $ Reporting Fiscal Year 2019 0.39% 0.49% $ 38,702 $ 35,048 $ $ 38,702 13,822,178 $ $ 35,048 12,085,624 0.28% 0.29% 4,406,379 $ 2,711,485 $ $ $ 2,976,968 (265,483) 11,543,146 2,568,191 2,747,609 $ (179,418) $ 11,796,929 25.79% 23.29% CITY OF PEORIA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION/OPEB PLAN SCHEDULES JUNE 30, 2025 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, 2024, valuation for ASRS were based on the results of an actuarial experience study for the five-year period ended June 30, 2020. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2024 actuarial valuation. Public Safety Personnel Retirement System (PSPRS) The actuarial assumptions used in the June 30, 2024, valuation for PSPRS were based on the results of the 2022 experience study. The payroll growth assumption was lowered from 2.00% to 1.50%. There were no method changes since the prior valuation. Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS changed benefit terms to reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to explicitly value future permanent benefit increases. PSPRS also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date. These changes also increased the PSPRS-required 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. 96 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 Half-Cent Sales Tax Fund General Obligation Bond Debt Service Fund Development Fee Fund Non-Bond Capital Projects Fund General Obligation Bond Capital Projects Fund 100 102 103 104 105 Non-Major Governmental Funds Combining Statements Combining Balance Sheet 109 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 110 Budgetary Comparison Schedules Public Transit Fund 112 Smart and Safe Arizona Fund 113 Municipal Development Authority (MDA) Debt, Debt Service Fund 114 Community Facilities District (CFD) Bonds Debt Service Fund 115 Non-Bond Debt Service Fund 116 Community Facilities District (CFD) Bonds Capital Projects Fund 117 Internal Service Funds Combining Statements Combining Statement of Net Position 119 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 120 Combining Statement of Cash Flows 121 Fiduciary Funds Combining Statements Combining Statement of Net Position Combining Statement of Changes in Fiduciary Net Position 97 123 124 MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND & SPECIAL REVENUE FUNDS Budgetary Comparison Schedules Half-Cent Sales Tax Fund This fund accounts for the revenues and expenditures associated with the City’s Half-Cent Sales Tax. It is presented within the General Fund on the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances. While this fund is presented with the General Fund for GAAP reporting purposes, the budgetary comparison schedule will be presented separately to provide a clearer view of its financial activity. 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) Bond 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. 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. 98 99 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE HALF-CENT SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Miscellaneous Total revenues $ EXPENDITURES: Current: General government 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 $ 31,927,879 1,500,000 33,427,879 $ 31,927,879 1,500,000 33,427,879 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 35,078,646 1,978,327 947,088 38,004,061 $ 3,150,767 478,327 947,088 4,576,182 13,155,450 23,549,638 36,705,088 15,695,904 23,807,542 39,503,446 7,221,811 4,126,992 11,348,803 (8,474,093) (19,680,550) (28,154,643) (3,277,209) (6,075,567) 26,655,258 32,730,825 (10,000,000) (25,559,194) (35,559,194) (25,559,194) (25,559,194) 1,220,032 (25,559,194) (24,339,162) 1,220,032 1,220,032 (38,836,403) (31,634,761) 2,316,096 33,950,857 64,158,568 64,158,568 65,022,467 863,899 25,322,165 $ 32,523,807 $ 68,197,223 $ 35,673,416 NOTE: Although included with the General Fund for GAAP presentation, the Half-Cent Sales Tax Fund is budgeted separately. 100 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE HALF-CENT SALES TAX FUND FOR THE YEAR ENDED JUNE 30, 2025 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "Total revenues" from the Half-Cent Sales Tax Fund budgetary comparison schedule Actual amounts (budgetary basis) "Total revenues" from the General 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 Half-Cent Sales Tax Fund budgetary comparison schedule Actual amounts (budgetary basis) "Total expenditures" from the General 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Capital outlay for SBITAs 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 $ 237,592,229 (19,498,261) 3,771,762 $ 259,869,791 $ 11,348,803 244,153,021 (11,011) (794,584) (683,207) (19,498,261) $ NOTE: Although included with the General Fund for GAAP presentation, the Half-Cent Sales Tax Fund is budgeted separately. 101 38,004,061 234,514,761 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE GENERAL OBLIGATION BONDS DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings(loss) Total revenues $ EXPENDITURES: Current: Debt service: Principal payments Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances - beginning Fund balances - ending $ 24,874,684 180,000 25,054,684 $ 24,874,684 180,000 25,054,684 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 23,017,795 518,607 23,536,402 $ (1,856,889) 338,607 (1,518,282) 16,702,862 7,240,987 23,943,849 16,702,862 7,240,987 23,943,849 14,527,862 5,616,562 20,144,424 (2,175,000) (1,624,425) (3,799,425) 1,110,835 1,110,835 3,391,978 2,281,143 1,110,835 1,110,835 3,391,978 2,281,143 22,550,402 22,550,402 20,828,250 (1,722,152) 23,661,237 $ 23,661,237 $ 24,220,228 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule $ 23,536,402 Differences - budget to GAAP: The City budgets certain revenues on the cash basis, rather than on the modified accrual basis 1,836,955 Total revenues as reported on the combining statement of revenue, expenditures, and changes in fund balances - governmental funds $ 25,373,357 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to GAAP: The City budgets for certain other expenditures on the cash basis, rather than on the modified accrual basis Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds 102 $ 20,144,424 129,300 $ 20,273,724 $ 558,991 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE DEVELOPMENT FEE FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Charges for services Investment earnings(loss) Total revenues $ EXPENDITURES: Current: Public safety Development services Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Total other financing sources and uses $ Fund balances - beginning $ 8,309,141 901,511 9,210,652 $ 11,131,194 2,288,558 13,419,752 $ 2,822,053 1,387,047 4,209,100 73,740 4,926,260 20,887,549 25,887,549 73,740 5,100,276 21,106,135 26,280,151 3,583 229,238 2,396,930 2,432,462 5,062,213 (70,157) 229,238 (2,703,346) (18,673,673) (21,217,938) (16,676,897) (17,069,499) 8,357,539 25,427,038 (5,000,000) (5,000,000) Net change in fund balances Fund balances - ending 8,309,141 901,511 9,210,652 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - - - (21,676,897) (17,069,499) 8,357,539 25,427,038 47,628,662 47,628,662 52,446,475 4,817,813 25,951,765 $ 30,559,163 $ 60,804,014 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule $ 13,419,752 Differences - budget to GAAP: The City budgets certain revenues on the cash basis, rather than on the modified accrual basis 737,366 Total revenues as reported on the combining statement of revenue, expenditures, and changes in fund balances - governmental funds $ 14,157,118 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - governmental funds 103 $ 5,062,213 884,330 78,056 $ 6,024,599 $ 30,244,851 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE NON-BOND CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Intergovernmental revenue Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: Highways and streets Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances - beginning Fund balances - ending $ 355,000 30,996,248 31,351,248 $ 355,000 30,996,248 31,351,248 Actual Amounts (budgetary basis) Variance with Final Budget Over (Under) $ $ 5,020,518 232,246 5,488,683 10,741,447 5,020,518 (122,754) (25,507,565) (20,609,801) 214,243 54,985,674 55,199,917 214,243 38,984,256 39,198,499 56,363 15,081,825 15,138,188 (157,880) (23,902,431) (24,060,311) (23,848,669) (7,847,251) (4,396,741) 3,450,510 (23,848,669) (7,847,251) (4,396,741) 3,450,510 32,323,168 32,323,168 8,331,491 (23,991,677) 8,474,499 $ 24,475,917 Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule Differences - budget to GAAP: Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds Uses/outflows or resources: Actual amounts (budgetary basis) "Total expenditures" from the budgetary comparison schedule Differences - budget to GAAP: Capital outlay recognized as expenditures for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds 104 $ 3,934,750 $ 10,741,447 $ 10,741,447 $ 15,138,188 (8,600,886) $ 6,537,302 $ (20,541,167) CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE GENERAL OBLIGATION (GO) BOND CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Investment earnings(loss) Total revenues $ EXPENDITURES: Current: Highways and streets Debt service: Interest and other charges Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Issuance of debt Premium on bonds issued Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 700,000 700,000 $ 700,000 700,000 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 1,555,952 1,555,952 $ 855,952 855,952 1,510,580 1,522,857 529,230 (993,627) 57,637,206 59,147,786 65,009,444 66,532,301 546,614 33,095,308 34,171,152 546,614 (31,914,136) (32,361,149) (58,447,786) (65,832,301) (32,615,200) 33,217,101 43,500,000 43,500,000 43,500,000 43,500,000 88,513,789 2,633,887 (1,458,789) 89,688,887 45,013,789 2,633,887 (1,458,789) 46,188,887 (14,947,786) (22,332,301) 57,073,687 79,405,988 15,143,294 15,143,294 21,976,995 6,833,701 195,508 $ (7,189,007) Explanation of differences between budgetary basis and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule Differences - budget to GAAP: The 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 budgetary comparison schedule 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances - governmental funds 105 $ 79,050,682 $ 1,555,952 128,616 $ 1,684,568 $ 34,171,152 8,176,681 (14,213,551) $ 28,134,282 $ 86,239,689 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. 106 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. 107 108 CITY OF PEORIA, ARIZONA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Special Revenue Funds ASSETS Pooled cash and investments Accounts receivable, net Interest receivable Due from other governments Prepaid items Restricted cash with fiscal agents Total assets LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable Accrued payroll Interest payable Due to other funds Arbitrage liability Unearned revenue-other Total liabilities Fund balances: Unspendable: Prepaid items Restricted for: Debt service Capital projects Public safety Grant purposes Unassigned: Total fund balance Total liabilities, deferred inflows & fund balance Debt Service Funds Public Transit Fund Smart & Safe AZ Fund Municipal Development Authority Debt CFD Bonds $ 6,719,091 385,306 45,275 $ 7,149,672 $ 2,321,561 $ 2,321,561 $ 3,255,206 19,695 $ 3,274,901 $ 1,602,545 22,277 76,380 16,446 4,598,665 $ 6,316,313 $ $ $ $ $ $ 53,274 25,450 5,000 83,724 - - - - - 619 58,893 59,512 2,321,561 2,321,561 3,274,901 3,274,901 6,240,355 6,256,801 $ 7,149,672 $ 2,321,561 $ 3,274,901 $ 6,316,313 109 Total CFD Bonds Non-Major Governmental Funds Non-Bond $ 16,446 7,065,948 7,065,948 Capital Project Funds 5,534 98 5,632 $ 5,763 2,392,377 $ 2,398,140 $ 41,451 2,689,184 2,730,635 $ $ - $ 14,417 105,180 119,597 $ - (2,725,003) (2,725,003) 2,278,543 2,278,543 5,632 $ 2,398,140 13,898,403 385,306 98,544 76,380 16,446 6,991,140 21,466,219 95,344 25,450 14,417 2,794,364 58,893 5,000 2,993,468 16,446 9,515,256 2,278,543 2,321,561 7,065,948 (2,725,003) 18,472,751 $ 21,466,219 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2025 REVENUES: Taxes Intergovernmental Charges for service Investment earnings(loss) Miscellaneous Total revenues EXPENDITURES: Current: General government 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): Issuance of debt Premium on bonds issued 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 657,940 91,088 289,631 348,803 1,387,462 $ $ 1,193,679 1,193,679 125,993 125,993 $ 5,610,274 142,509 292,674 6,045,457 $ 35,496 112,185 147,681 2,716,382 - - 166,387 - 107,263 - 2,716,382 - - 4,400,000 812,182 5,378,569 6,183,267 1,219,860 7,510,390 (1,328,920) 1,193,679 125,993 666,888 (7,362,709) 1,900,000 (154,065) 1,745,935 (900,000) (900,000) - 150,170 150,170 5,259,785 5,259,785 417,015 293,679 125,993 817,058 (2,102,924) 6,648,933 2,027,882 3,148,908 5,439,743 (622,079) $ 7,065,948 $ 2,321,561 $ 3,274,901 $ 6,256,801 $ (2,725,003) (continued) 110 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Capital Project Funds REVENUES: Taxes Intergovernmental Charges for service Investment earnings(loss) Miscellaneous Total revenues CFD Bonds $ EXPENDITURES: Current: General government 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): Issuance of debt Premium on bonds issued Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 36,870 36,870 Total Non-Major Governmental Funds 166,387 107,263 2,716,382 565,753 4,008,482 4,574,235 10,583,267 2,597,795 4,008,482 20,179,576 (4,537,365) (11,242,434) 6,810,000 156,078 (150,170) 6,815,908 6,810,000 156,078 7,309,955 (1,204,235) 13,071,798 2,278,543 1,829,364 $ 5,610,274 1,851,619 91,088 630,499 753,662 8,937,142 2,278,543 16,643,387 $ 18,472,751 (concluded) 111 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE PUBLIC TRANSIT FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Intergovernmental Charges for services Investment earnings Miscellaneous Total inflows $ EXPENDITURES: Current: Human services Capital outlay 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 $ 484,303 90,000 140,000 561,608 1,275,911 $ 484,303 90,000 140,000 561,608 1,275,911 Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) $ 657,940 91,088 289,631 348,803 1,387,462 $ 173,637 1,088 149,631 (212,805) 111,551 3,290,795 3,290,795 3,502,283 3,502,283 2,571,567 154,065 2,725,632 (930,716) 154,065 (776,651) (2,014,884) (2,226,372) (1,338,170) 888,202 1,900,000 1,900,000 1,900,000 1,900,000 1,900,000 1,900,000 - (114,884) (326,372) 561,830 888,202 4,804,754 4,804,754 6,648,933 1,844,179 4,689,870 $ 4,478,382 $ 7,210,763 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule $ 1,387,462 Total revenues as reported on the combining statement of revenue, expenditures, and changes in fund balances - non-major governmental funds $ 1,387,462 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule 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 for budgetary purposes, but assets capitalized in proprietary funds for financial reporting purposes Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - non-major governmental funds 112 $ 2,725,632 144,815 (154,065) $ 2,716,382 $ 2,732,381 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE SMART & SAFE AZ FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Intergovernmental revenue Total revenues $ EXPENDITURES: Total expenditures $ - Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 1,355,326 1,355,326 $ 1,355,326 1,355,326 Actual Amounts (budgetary basis) Variance with Final Budget Over (Under) $ $ - 1,193,679 1,193,679 - (161,647) (161,647) - 1,355,326 1,355,326 1,193,679 (161,647) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) - 455,326 455,326 293,679 (161,647) 2,086,575 2,541,901 113 $ 2,086,575 2,541,901 $ 2,027,882 2,321,561 $ (58,693) (220,340) CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE MUNICIPAL DEVELOPMENT AUTHORITY (MDA) DEBT, DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2025 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 Net change in fund balances Fund balances - beginning Fund balances - ending - $ - $ 125,993 125,993 $ 125,993 125,993 7,000 7,000 - - - (7,000) - 125,993 125,993 (7,000) - 125,993 125,993 3,148,908 (2,145,687) 5,294,595 $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) 5,287,595 114 5,294,595 $ 5,294,595 $ 3,274,901 $ (2,019,694) CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT (CFD) BONDS DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Taxes Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: General government Debt service: Principal payments Interest and other charges Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Contingencies Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 5,728,549 1,080,000 6,808,549 $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) 5,728,549 1,080,000 6,808,549 $ 4,770,777 142,509 292,674 5,205,960 $ (957,772) 142,509 (787,326) (1,602,589) 1,140,000 1,140,000 77,669 (1,062,331) 4,470,000 752,600 6,362,600 4,470,000 752,600 6,362,600 4,400,000 812,182 5,289,851 (70,000) 59,582 (1,072,749) 445,949 445,949 (83,891) (529,840) (10,000) (10,000) (10,000) (10,000) 150,170 150,170 10,000 150,170 160,170 435,949 435,949 66,279 (369,670) - - 5,439,743 5,439,743 435,949 $ 435,949 $ 5,506,022 Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "available for appropriations" from the budgetary comparison schedule $ 5,205,960 Differences - budget to GAAP: The City budgets certain revenues on the cash basis, rather than on the modified 839,497 accrual basis Total revenues as reported on the combining statement of revenue, expenditures, and changes in fund balances - non-major governmental funds $ 6,045,457 Uses/outflows or resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to GAAP: The City budgets for certain other expenditures on the cash basis, rather than on the modified accrual basis Total expenditures as reported in the combining statement of revenues, expenditures, and changes in fund balances - non-major governmental funds 115 $ 5,289,851 88,718 $ 5,378,569 $ 5,070,073 CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE NON-BOND DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Investment earnings Miscellaneous Total revenues $ EXPENDITURES: Current: 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 20,493 20,493 20,493 20,493 $ 35,496 112,185 147,681 $ 15,003 112,185 127,188 106,335 107,263 928 6,183,267 1,264,788 7,448,055 6,183,267 1,221,788 7,511,390 6,183,267 1,219,860 7,510,390 (1,928) (1,000) (7,427,562) (7,490,897) (7,362,709) 128,188 5,259,785 5,259,785 5,259,785 5,259,785 5,259,785 5,259,785 - (2,167,777) (2,231,112) (2,102,924) 128,188 (622,079) (622,079) $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) (2,167,777) 116 $ (2,231,112) $ (2,725,003) $ (493,891) CITY OF PEORIA, ARIZONA BUDGETARY COMPARISON SCHEDULE COMMUNITY FACILITIES DISTRICT (CFD) BONDS CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2025 Budgeted Amounts Original Final REVENUES: Investment earnings Total revenues $ - $ Variance with Final Budget Over (Under) Actual Amounts (budgetary basis) - $ 36,870 36,870 $ 36,870 36,870 EXPENDITURES: Debt service: Interest and other charges Capital outlay Total expenditures 800,000 5,100,000 5,900,000 800,000 5,100,000 5,900,000 565,753 4,008,482 4,574,235 (234,247) (1,091,518) (1,325,765) OTHER FINANCING SOURCES (USES): Issuance of debt Premium on bonds issued Transfers out Total other financing sources and uses 10,500,000 10,500,000 10,500,000 10,500,000 6,810,000 156,078 (150,170) 6,815,908 (3,690,000) 156,078 (150,170) (3,684,092) 4,600,000 4,600,000 2,278,543 (2,321,457) Net change in fund balances Fund balances - beginning Fund balances - ending $ 4,600,000 117 $ 4,600,000 $ 2,278,543 $ (2,321,457) 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. 118 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2025 ASSETS Current assets: Pooled cash and investments Restricted pooled cash and investments Restricted cash with fiscal agents Accounts receivable, net Interest receivable Prepaid items Supplies inventory Total current assets Non-current assets: Restricted assets: Investments Total restricted assets Capital assets: Buildings and improvements Equipment & furniture Vehicles Intangible-SBITA Less accumulated depreciation/amortization 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 Accrued interest payable Other current liabilities Current portion of claims payable Current portion of compensated absences Current portion of SBITA payable Total current liabilities Non-current liabilities: Long-term portion of claims payable Compensated absences Long-term portion of SBITA payable 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 $ 18,314,650 109,803 124,086 4,956,387 326,061 23,830,987 $ 4,152,681 22,322,690 328,242 21,980 325,263 27,150,856 $ 3,535,284 36,365 3,571,649 $ 11,056,877 5,933 90,646 - 9,538,209 9,538,209 2,166,717 46,290,199 (32,693,341) 15,763,575 48,299 39,642,861 239,206 239,206 36,689,065 - - 11,153,456 - Total $ 37,059,492 22,322,690 328,242 137,716 576,360 4,956,387 326,061 65,706,948 9,538,209 9,538,209 87,996 3,659,645 148,102 25,027,622 3,876,760 (26,436,514) 11,471,665 14,087,635 184,864 25,425,955 148,102 27,194,339 46,290,199 3,876,760 (59,129,855) 11,471,665 29,851,210 321,159 105,417,526 435,809 435,809 915,560 915,560 1,590,575 1,590,575 671,517 48,213 47,431 80,160 847,321 1,744,706 4,064 11 7,914,708 4,531 9,668,020 173,874 87,518 160,726 422,118 1,293,265 186,448 284,790 415,233 1,237,609 3,417,345 3,883,362 326,243 284,790 47,442 7,914,708 660,650 1,237,609 14,354,804 69,170 - 1,930,388 748 - 177,289 - 305,126 9,722,222 1,930,388 552,333 9,722,222 1,253,275 1,322,445 2,169,766 1,931,136 11,599,156 2,283,359 2,460,648 2,882,766 4,796,929 14,824,277 18,241,622 8,333,563 20,538,506 34,893,310 191,789 191,789 402,918 402,918 699,974 699,974 87,996 932,903 $ 1,020,899 3,127,804 184,864 4,384,307 $ 7,696,975 18,539,000 22,730,292 321,159 29,824,366 $ 71,414,817 105,267 105,267 15,411,196 48,299 22,147,539 $ 37,607,034 119 22,730,292 2,359,617 $ 25,089,909 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2025 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) Motor Pool Fund SelfInsurance Fund Facilities Maintenance Fund Information Technology Fund Total $ 11,262,715 166,712 11,429,427 $ 30,896,151 1,202,703 32,098,854 $ 7,693,223 7,693,223 $ 14,830,027 8,808 14,838,835 $ 64,682,116 1,378,223 66,060,339 1,857,899 7,353,598 5,114,400 14,325,897 (2,896,470) 328,569 1,794,061 29,817,247 31,939,877 158,977 2,868,218 4,103,705 6,971,923 721,300 5,647,366 9,047,948 1,400,667 16,095,981 (1,257,146) 10,702,052 22,299,312 29,817,247 6,515,067 69,333,678 (3,273,339) NON-OPERATING REVENUES (EXPENSES) Investment income(loss) Interest expense Gain (Loss) on sale of capital assets Total non-operating revenues Income (loss) before capital contributions and transfers 793,804 183,280 977,084 1,606,447 1,606,447 232,629 232,629 579,881 (342,302) 237,579 3,212,761 (342,302) 183,280 3,053,739 (1,919,386) 1,765,424 953,929 (1,019,567) (219,600) Transfers in Transfers out Change in net position 3,768,260 (33,573) 1,815,301 (31,120) 1,734,304 953,929 4,398,612 3,379,045 8,166,872 (64,693) 7,882,579 Total net position - beginning 35,791,733 23,355,605 66,970 4,317,930 63,532,238 $ 37,607,034 $ 25,089,909 7,696,975 $ 71,414,817 Total net position - ending 120 $ 1,020,899 $ CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2025 Motor Pool Fund SelfInsurance Fund $ 11,354,723 (11,945,404) (1,605,677) (2,196,358) $ 32,096,712 (2,160,743) (385,474) (30,171,410) (620,915) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in Transfers out Net cash provided (used) by non-capital financing activities 3,768,260 (33,573) 3,734,687 (31,120) (31,120) - 4,398,612 4,398,612 8,166,872 (64,693) 8,102,179 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from disposal of capital assets Principal payments on SBITA agreements Interest payments on SBITA agreements Net cash flows used by capital and related financing activities (2,394,087) 193,231 (2,200,856) - - (11,975,054) 8,512,584 (81,496) (3,543,966) (14,369,141) 193,231 8,512,584 (81,496) (5,744,822) CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Self-insurance costs Net cash provided (used) by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sale of investments Interest received on investments Net cash provided by investing activities Facilities Maintenance Fund Information Technology Fund $ $ 14,834,179 (7,959,042) (6,066,166) 808,971 7,693,223 (4,152,230) (3,019,433) 521,560 Total $ 65,978,837 (26,217,419) (11,076,750) (30,171,410) (1,486,742) 787,009 787,009 (4,351,275) 3,831,145 1,547,566 1,027,436 228,992 228,992 578,879 578,879 (4,351,275) 3,831,145 3,142,446 2,622,316 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 124,482 18,190,168 $ 18,314,650 375,401 26,428,212 $ 26,803,613 750,552 2,784,732 3,535,284 2,242,496 8,814,381 $ 11,056,877 3,492,931 56,217,493 59,710,424 Classified as: Pooled cash and investments Cash with fiscal agents Totals $ 18,314,650 $ 18,314,650 $ 26,475,371 328,242 $ 26,803,613 $ 3,535,284 3,535,284 $ 11,056,877 $ 11,056,877 $ 59,382,182 328,242 59,710,424 $ $ $ 721,300 $ $ (3,273,339) $ $ $ $ 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 Other liabilities Claims payable Compensated absences Net pension and other post employment benefit liability Deferred inflows - pension and other postemployment benefits Total adjustments (2,896,470) 158,977 (1,257,146) 5,114,400 - - 1,400,667 6,515,067 (74,704) (4,956,387) (28,009) (14,049) (102,810) (2,142) - (8,320) (118,515) (4,656) 381,687 (12,755) (230,170) (81,502) (4,574,700) (28,009) (35,124) (451,495) 392,590 (1,938) 46,773 39,200 244,949 40,097 700,112 (366,682) (2,230) (354,163) (54,675) (779,892) (48,525) 13,418 (15,689) (62,296) 40,187 (199,740) 707,219 28,924 (10,288) (269,949) 75,438 2,066,117 684,602 38,174 46,773 (354,163) (41,452) (87,296) 155,722 1,786,597 Net cash provided (used) by operating activities $ (2,196,358) $ (620,915) $ 521,560 $ 808,971 $ (1,486,742) Non-cash investing, capital and financing activities: Change in balances of capital accounts payable or retainage payable Change in fair market value of investments Total non-cash investing, capital and financing activities $ (349,392.00) $ (349,392) $ 132,522 132,522 $ - $ - $ (349,392) 132,522 (216,870) 121 $ $ $ $ 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. 122 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2025 ASSETS Pooled cash and investments 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 $ 224,825 939 225,764 $ - 94 94 3,863 3,863 - 221,901 221,901 94 94 123 $ Total Custodial Funds $ 224,825 1,033 225,858 3,863 3,863 221,901 94 $ 221,995 CITY OF PEORIA, ARIZONA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2025 ADDITIONS Contributions: Individuals Investment earnings: Interest Total additions Custodial Funds Westside PLAY Fire Peoria Training NFP Fund IGA Fund $ 94,535 DEDUCTIONS Recipient payments Total deductions Change in net position Net position - beginning of the year Net position - end of the year 124 - $ 94,535 6,008 100,543 1,350 1,350 7,358 101,893 25,990 25,990 52,802 52,802 78,792 78,792 74,553 (51,452) 23,101 51,546 94 198,894 $ 221,995 147,348 221,901 $ $ Total Custodial Funds $ 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. 125 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 127 128 130 131 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 132 133 134 135 136 137 138 139 140 141 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 144 145 146 147 148 149 150 151 152 153 Economic and Demographic Information XXV Demographic and Economic Statistics XXVI Major Employers Within the City 154 155 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 156 157 158 126 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 $ $ $ $ $ $ 899,648,174 162,959,546 (32,938,378) 1,029,669,342 2018 (2) 2017 2016 $ $ 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 $ $ $ $ $ $ 635,872,778 121,796,554 (7,041,008) 750,628,324 Table I Fiscal Year 2019 $ $ 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 $ $ $ (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 127 727,837,350 122,549,508 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 2023 $ $ $ $ 2024 735,144,237 147,049,925 114,694,957 996,889,119 789,681,154 168,721,650 150,944,721 $ 1,109,347,525 828,799,497 184,455,824 175,484,836 $ 1,188,740,157 662,256,419 33,324,822 88,896,938 784,478,179 $ $ $ 1,397,400,656 180,374,747 203,591,895 $ 1,781,367,298 $ 2025 $ 725,127,889 39,428,169 96,647,012 861,203,070 $ 1,514,809,043 208,149,819 247,591,733 $ 1,970,550,595 $ $ 769,907,037 41,123,501 107,332,642 918,363,180 $ 1,598,706,534 225,579,325 282,817,478 $ 2,107,103,337 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 Total governmental activities expenses Business-type Activities Water Utility Wastewater Utility Solid Waste Utility Stadium Storm Drain Utility 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 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 2016 $ $ $ $ $ $ 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) 2017 $ $ $ $ $ $ 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 $ $ $ $ $ $ Fiscal Year 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) 128 $ $ $ $ $ $ Table II 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) 2023 $ $ $ $ $ $ 37,273,981 45,008,300 108,735,210 6,827,829 51,902,098 8,629,505 4,857,735 7,307,398 270,542,056 61,406,938 30,287,509 18,141,399 9,623,372 4,602,541 124,061,759 394,603,815 35,733,582 29,850,458 15,421,371 81,005,411 108,537,468 17,954,815 126,492,283 207,497,694 (189,536,645) 2,430,524 (187,106,121) 2024 $ $ $ $ $ $ 39,675,813 44,703,457 121,385,694 6,544,529 66,507,941 7,639,676 5,141,147 6,488,273 298,086,530 63,002,858 30,357,658 20,178,264 8,518,476 4,518,810 126,576,066 424,662,596 50,029,243 28,961,742 61,749,051 140,740,036 127,456,217 45,128,529 172,584,746 313,324,782 (157,346,494) 46,008,680 (111,337,814) 2025 $ $ $ $ $ $ 43,135,951 46,199,311 131,017,091 6,769,822 66,673,011 7,528,590 5,621,479 7,507,378 314,452,633 71,518,191 34,993,493 20,934,233 8,889,253 4,619,802 140,954,972 455,407,605 48,026,361 31,800,559 40,199,091 120,026,011 132,874,287 34,096,411 166,970,698 286,996,709 (194,426,622) 26,015,726 (168,410,896) CITY OF PEORIA, ARIZONA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2016 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 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 Transfers in (out) Total business-type activities Total primary government Change in Net Position Governmental Activities Business-type Activities Total primary government Source: $ $ $ $ 2,994,905 17,537,813 79,410,364 4,461,864 2017 $ 3,207,433 18,532,683 84,236,770 4,501,681 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 (3,994,967) 144,530,909 709,850 3,994,967 4,704,817 149,235,726 33,811,962 24,173,650 57,985,612 $ $ $ 2018 $ 3,522,321 20,152,280 89,781,248 5,035,331 2019 $ Fiscal Year 5,099,325 20,276,526 93,182,810 4,925,609 $ Table II 2020 5,928,720 21,829,330 99,747,911 4,776,257 (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) 185,501,941 519,774 109,744 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 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 Statement of Activities City financial records and reports 129 $ $ $ 35,019,694 8,676,979 43,696,673 2021 $ 6,086,505 23,814,936 113,852,555 4,965,951 2022 $ 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 2023 $ 6,712,827 27,258,369 131,030,117 5,240,846 2024 $ 7,060,462 28,763,387 134,078,467 5,506,906 2025 $ 7,364,070 30,126,345 140,746,001 5,620,099 (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 28,812,810 36,976,059 9,669,103 6,404,789 3,641,910 (15,646,720) 240,100,110 29,902,732 52,432,815 9,953,932 21,284,912 4,350,225 (23,528,938) 269,804,900 30,500,400 42,279,677 10,420,735 24,870,669 5,063,032 (23,171,774) 273,819,254 211,199 17,835 8,264,790 8,493,824 $206,398,461 (2,985,986) 24,095 3,373,622 411,731 215,889,011 2,994,854 15,646,720 18,641,574 258,741,684 7,187,273 23,528,938 30,716,211 300,521,111 7,893,552 79,058 23,171,774 31,144,384 304,963,638 58,805,115 33,424,048 92,229,163 $ $ $ 66,266,132 2,800,977 69,067,109 $ $ $ 50,563,465 21,072,098 71,635,563 $ $ $ 112,458,406 76,724,891 189,183,297 $ $ $ 79,392,632 57,160,110 136,552,742 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 2016 $ $ $ 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 2017 $ $ $ 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 2018 $ $ $ 123,939 40,488 42,249,268 1,760,838 33,849,097 78,023,630 2019 $ $ 2020 $ 2021 190,312 1,924 59,902,768 3,748,153 99,008,274 $ 162,851,431 194,330 10,879 62,978,528 5,604,860 127,018,726 $ 195,807,323 207,667 16,742 63,748,730 3,971,714 173,382,053 $ 241,326,906 192,136 19,989 72,810,031 4,888,501 175,961,620 $ 253,872,277 $ $ $ $ $ $ $ 160,890,907 $ 162,648,748 $ 120,298,976 Source: Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds Balance Sheet - Governmental Funds City financial records and reports 130 69,986 108,519,124 2,429,777 9,280,089 - 144,357 107,990,268 2,424,547 4,902,888 (7,969,083) $ 107,492,977 379,976 304,865,760 63,770,700 29,973,003 99,008,274 $ 497,997,713 136,596 169,504,680 2,082,021 11,099,097 (808,741) $ 182,013,653 $ 2025 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 - $ 2024 2,323,312 30,639 55,086,725 1,528,073 80,266,172 $ 139,234,921 $ $ 2023 939,966 40,762 52,300,995 1,363,728 58,221,670 112,867,121 78,068 115,222,701 10,663,895 34,926,243 - $ 2022 4,551,542 165,767,951 2,313,146 8,331,491 (2,160,384) $ 178,803,746 $ 155,130 238,914,759 2,538,209 3,555,350 (2,725,003) $ 242,438,445 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 2017 2016 $ Total Revenues 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 Fiscal Year 2020 2019 $ 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 $ 2023 162,396,713 96,914,612 28,254,679 5,100,898 1,731,336 1,080,477 (6,532,719) 3,732,659 $ 2024 170,261,592 106,279,739 29,001,041 3,650,883 1,779,161 1,052,182 5,284,806 3,822,969 $ 2025 175,373,761 125,440,248 41,178,672 5,211,692 1,965,548 1,408,884 18,471,813 7,882,011 $ 183,897,582 119,830,533 37,061,933 6,234,398 2,113,692 1,786,701 21,657,908 9,474,364 203,287,036 210,162,084 221,978,646 231,294,872 259,595,884 269,832,850 292,678,655 321,132,373 376,932,629 382,057,111 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 31,837,659 38,588,757 114,823,555 6,702,535 24,817,250 8,008,222 4,828,035 24,151,553 35,263,997 37,586,725 124,831,993 6,362,353 40,115,497 7,619,576 4,989,820 28,236,972 38,002,860 39,964,790 135,020,458 6,779,530 40,791,272 7,587,437 5,324,646 64,621,052 Expenditures General Government Culture & Recreation Public Safety (1) Development Services Highways & Streets Public Works Human Services Capital Outlay Debt Service Interest 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 10,606,558 11,336,938 9,705,255 8,776,334 8,623,160 8,170,203 7,635,199 8,494,309 8,471,799 8,993,232 Principal 18,010,000 19,867,000 19,483,000 22,022,461 22,726,060 21,569,912 24,368,166 25,957,889 26,245,247 26,464,160 Payment to bond escrow agent 6,707,216 - 13,604,681 - - - - - - - Total Expenditures 190,296,187 211,209,027 229,362,728 229,872,198 274,391,345 247,008,753 292,994,042 288,209,764 319,723,979 373,549,437 Excess of Revenues over (under) Expenditures 12,990,849 (1,046,943) (7,384,082) 1,422,674 (14,795,461) 22,824,097 (315,387) 32,922,609 57,208,650 8,507,674 103,410,000 30,325,000 3,000,000 28,975,000 5,199,304 30,420,000 2,590,000 20,855,000 1,870,000 21,495,000 55,880,000 31,708,075 8,469,593 14,096,688 (114,802,841) 12,890,960 (20,363,855) 108,061 17,925,171 (28,236,236) (28,814,053) 17,684,545 (19,786,126) 3,146,339 36,612,624 (35,000,305) 292,139 14,049,347 (18,117,997) 2,448,280 (22,641,792) 9,787,365 (17,015,124) 8,086,575 (26,081,153) 11,422,490 (17,724,676) 1,547,460 9,484,295 (28,266,035) 6,673,370 942,367 12,876,324 (43,860,628) Other Financing Sources (Uses) Refunding bonds issued Issuance of debt Issuance of debt - from Subscriptions Proceeds from Leases Proceeds from Subscriptions Premium on bonds issued Payments to bond refunding escrow agent Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Debt Service as a percentage of noncapital expenditures (1) 25,555,952 $ 38,546,801 19.85% (7,203,004) $ (8,249,947) 3,258,670 $ 17.16% (4,125,412) 21.03% 35,178,658 $ 36,601,332 15.24% 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 131 (1,186,511) $ (15,981,972) 14.32% (4,696,271) $ 18,127,826 13.91% 53,078,236 $ 52,762,849 11.60% 14,473,795 $ 47,396,404 13.05% 95,323,789 832,595 2,789,965 10,072,941 (41,346,894) (14,898,974) $ 42,309,676 11.91% 67,672,396 $ 76,180,070 11.48% CITY OF PEORIA, ARIZONA CITY TRANSACTION PRIVILEGE TAXES BY CATEGORY LAST TEN FISCAL YEARS Table V Fiscal Year 2016 2017 2018 Retail Sales Contracting Rentals Utilities* Telecom/Cable TV Restaurant/Bar Amusement Use Other $ 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 $ Total $ 79,410,364 $ 84,236,770 $ 89,781,247 $ % Growth by Year Retail Sales Contracting Rentals Utilities Telecom/Cable TV Restaurant/Bar Amusement Use Other 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% Total 6.5% 6.1% 6.6% 2019 2020 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 $ 93,182,810 $ 2022 2023 $ $ 72,723,943 9,816,663 13,552,001 $ 75,979,285 15,074,606 11,485,611 519,698 17,239,681 1,846,366 2,594,351 13,280,920 694,810 18,302,127 1,947,781 2,664,114 14,377,028 539,968 18,810,742 2,517,756 2,968,151 12,573,194 131,030,117 $ 134,078,467 $ 139,949,314 $ 99,747,912 $ 113,852,555 $ 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% 4.7% -11.1% 10.1% -0.6% -2.2% 9.9% 4.5% 53.6% -15.2% 16.4% 8.3% 9.3% -14.9% 361.9% 33.7% 6.2% 5.5% 2.7% 8.3% -22.3% 2.8% 29.3% 11.4% -12.5% 3.79% 7.05% 14.14% 10.25% 4.39% 2.33% 4.38% 132 125,521,932 73,186,740 10,035,444 12,326,917 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 Source: City financial records and reports $ 2025 $ Includes all governmental fund types 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 2024 52,794,953 11,472,743 10,684,541 8,303,764 725,389 11,597,024 971,024 2,334,003 864,471 * For confidentiality reasons, Utilities sales tax cannot be reported separately in FY2023 and FY2024 and is included with Other Note: 2021 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 2016 2017 2018 Year Taxes Are Payable 2019 2020 2021 2022 2023 2024 2025 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% 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 133 Table VII CITY OF PEORIA, ARIZONA SALES TAX PAYERS - BY CATEGORY CURRENT YEAR AND NINE YEARS AGO 2025 Category # of Payers Percentage of Total Payers Sales Tax Paid Percentage of Total City Sales Tax Revenue Retail Sales Contracting Restaurant/Bar Rental Utilities* Telecom/Cable TV Use Amusement Others 15,513 957 507 5,448 60.8% 3.7% 2.0% 21.3% 75,979,285 15,074,606 18,810,742 11,485,611 54.30% 10.80% 13.40% 8.20% 238 2,635 96 153 0.9% 10.3% 0.4% 0.6% 539,968 2,968,151 2,517,756 12,573,194 Total 25,547 100.00% 139,949,314 $ 134 # of Payers Percentage of Total Payers 0.40% 2.10% 1.80% 9.00% 3,360 3,614 357 6,614 11 182 1,505 60 79 21.30% 22.90% 2.30% 41.90% 0.10% 1.10% 9.50% 0.40% 0.50% 100.00% 15,782 100.00% * - For confidentiality reasons, utilities sales tax cannot be reported separately in FY2025 and is included with Others Source: City Sales Tax system City financial records 2016 Sales Tax Paid $ Percentage of Total City Sales Tax Revenue 38,908,327 6,257,112 9,284,232 7,522,177 7,498,115 1,217,583 718,931 1,036,941 2,112,606 52.20% 8.40% 12.50% 10.10% 10.00% 1.60% 1.00% 1.40% 2.80% 74,556,024 100.00% CITY OF PEORIA, ARIZONA ASSESSED VALUES BY PROPERTY CLASSIFICATION LAST TEN FISCAL YEARS 2016 2017 626,696,840 214,086,717 $ Fiscal Year 2019 2018 $ $ 875,459,952 290,792,306 $ 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% $ 1,890,818,254 6.2% $ 2,014,265,023 6.5% $ 2,141,570,869 6.3% Net Assessed Value Per Capita Population $ 7,174 164,212 $ 7,400 168,192 $ 7,632 172,259 $ 8,008 179,800 $ 8,641 190,985 $ 8,687 194,517 $ 9,005 197,786 $ 9,514 198,750 $ 10,021 201,001 $ 10,321 207,499 356,175,720 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 1,103,379,764 363,797,432 $ 2025 $ 352,052,608 36,824,728 1,040,771 502,515 48,122 954,002,402 309,884,348 2024 1,178,016,995 1.9% 328,762,027 36,731,719 1,015,986 577,715 - $ 2023 $ 310,764,850 44,053,047 1,065,441 305,265 25,390 813,110,830 259,614,712 2022 Net Assessed Value % Growth 297,883,403 40,513,630 1,040,707 396,725 - 740,037,974 243,816,250 2021 $ Total Direct Secondary Tax Rate $ 2020 Residential (Owner occupied) Residential (Renter occupied) Commercial, Industrial, Mining & Utilities Agriculture & Vacant Railroad Historic & Environmental Public Property Improvements 291,761,032 44,305,284 1,137,482 24,540 5,100 674,378,782 230,466,048 Table VIII 385,810,266 36,498,803 1,276,282 55,707 1,169,092,905 403,352,247 $ 400,209,657 40,071,865 1,518,083 16,049 4,217 1,238,161,226 431,704,629 430,182,099 39,764,287 1,694,390 64,238 1.25 1.25 1.25 1.15 1.15 1.15 1.15 1.15 1.15 1.15 Full Cash Value % Growth $ 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% $ 26,391,921,793 8.0% $ 33,696,719,077 27.7% $ 41,228,643,224 22.4% Full Cash Value Per Capita $ $ $ $ $ $ $ $ $ $ 85,063 Net Assessed Value as a Percentage of Full Cash Value 90,757 8.4% 96,410 8.2% 8.1% 102,196 111,320 7.8% 7.8% 116,111 123,593 7.5% 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: Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 16% 16% 16% 15% 15% 15% 15% 15% 15% 15% 15% 16% 15% 14% 15% 14% 15% 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 135 7.3% 132,790 7.2% 167,645 6.0% 198,693 5.2% CITY OF PEORIA, ARIZONA COMPARATIVE ASSESSED VALUES LAST TEN FISCAL YEARS Table IX Fiscal Year 2016 (a) City of Peoria $ 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 2023 $ 1,890,818,254 2024 $ 2,014,265,023 2025 $ 2,141,570,869 Peoria Unified School District No. 11 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 2,316,600,539 2,465,686,542 2,642,784,882 Maricopa County 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 51,575,018,189 54,722,326,231 58,328,686,360 State of Arizona 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 78,405,598,978 83,026,530,244 88,425,611,337 (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 136 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 2016 $ 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 2017 $ 0.19 1.25 1.44 Fiscal Year 2018 $ 2019 0.19 1.25 1.44 $ 0.29 1.15 1.44 Table X 2020 $ 0.29 1.15 1.44 2021 $ 0.29 1.15 1.44 2022 $ 0.29 1.15 1.44 2023 $ 0.29 1.15 1.44 2024 $ $ 0.29 1.15 1.44 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 6.67 3.72 2.44 6.16 3.54 2.23 5.77 3.40 2.13 5.53 3.24 1.81 5.05 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 4.06 2.97 1.02 3.99 2.89 0.96 3.85 2.34 0.86 3.20 2.28 0.86 3.14 2.21 0.85 3.06 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 6.17 4.24 10.41 5.97 4.14 $ 10.11 5.73 3.81 9.54 $ $ $ $ $ $ $ (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 $ 3.27 $ 2.23 (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 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 2024 Tax Rate 0.29 1.15 1.44 2025 Primary $ 1.16 1.05 $ 2.21 Secondary $ 0.06 0.15 0.01 0.05 0.27 0.18 0.14 $ 0.85 Note: All rates rounded to two decimal places from the four shown by the County Source: Maricopa County Assessor - Tax Rates Publication 137 $ CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING PROPERTY TAX LEVIES LAST TEN FISCAL YEARS Total Direct City Primary Secondary Total 2016 $ Peoria Unified School District No. 11 (1) Primary Secondary Maricopa County (2) Primary Secondary Total Primary Secondary Total $ 2,238,232 14,725,212 16,963,444 2017 $ 2,364,891 15,558,491 17,923,382 2018 $ 2,546,130 16,750,853 19,296,983 2019 $ 4,175,458 16,557,849 20,733,307 $ Source: $ 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 2023 $ 5,483,373 21,744,410 27,227,783 2024 $ 5,841,367 23,164,041 29,005,408 2025 $ 6,210,556 24,628,065 30,838,621 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 81,921,945 51,687,487 83,710,030 52,442,776 85,544,304 47,854,445 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 1,203,658,775 390,658,525 1,249,583,952 405,133,711 1,287,722,410 419,069,733 1,158,429,746 291,669,633 1,450,099,379 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 1,291,064,093 464,090,422 1,755,154,515 1,339,135,349 480,740,528 $ 1,819,875,877 1,379,477,270 491,552,243 $ 1,871,029,513 $ Primary 115,789,157 $ Primary 676,087,804 $ $ Secondary 79,363,077 Secondary 611,634,606 $ $ 74,140,908 50,494,525 (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 2024Tax Levy Tax Levy Fiscal Year 2020 72,782,246 41,966,017 (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 Table XI 1,287,722,410 $ 32,734,732 79,198,583 4,654,662 27,414,483 153,380,069 41,118,776 80,568,428 419,069,733 Maricopa County Assessor - Tax Rates and Levies publication 138 $ $ $ $ CITY OF PEORIA, ARIZONA LIMITED PROPERTY VALUE TOP TEN TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Table XII 2025(a)(b) Taxpayer Arizona Public Service Vestar LPTC LLC Park West WFB LLC Southwest Gas Corporation DDRA Arrowhead Crossing LLC The Village at Pioneer Park LLC N 75th AZ Partners LLC Freedom Plaza Limited Partnership Lease Peoria Center Apartments South LLC BCC Development Inc. Park West Retail I LLC Sprint Nextel Wireless LP Vestar Arizona XLVIII LLC Miller Family Real Estate LLC Target Corporation BCC Development Inc. Total Type of Business Gas & Electric Utility Property Development Asset Management Gas Utility Shopping Center Multi-family Housing Multi-family Housing Retirement Housing Multi-family Housing Property Development Shopping Center Telecommunications Property Development Shopping Center Shopping Center Property Development Limited Property Assessed Value $ 95,021,012 8,981,558 7,158,191 7,058,259 5,510,026 5,391,327 5,135,992 4,912,038 4,693,758 4,538,840 $ 148,401,001 Rank 1 2 3 4 5 6 7 8 9 10 2016 % of Limited Property Assessed Value 4.44% 0.42% 0.33% 0.33% 0.26% 0.25% 0.24% 0.23% 0.22% 0.21% 6.93% Taxable Secondary Assessed Value $ 23,516,704 $ 3,759,704 $ $ 4,181,863 4,478,370 6 5 0.35% 0.38% $ $ $ $ $ $ $ 5,248,347 5,182,165 4,968,647 4,046,337 3,508,421 3,497,734 62,388,292 2 3 4 7 9 10 0.45% 0.44% 0.42% 0.34% 0.30% 0.30% 5.30% (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. (b) In 2023 Maricopa County changed their reporting software, so company consolidations may be different from prior years. Note - As a quasi-governmental entity, Salt River Project pays in-Lieu taxes, rather than property taxes. For fiscal year 2025, the assessed value of Salt River Project property within the City of Peoria is $25,583,709 Source - Maricopa County Treasurer's or Assessor's Office 139 Rank 1 8 % of Taxable Secondary Assessed Value 2.00% 0.32% CITY OF PEORIA, ARIZONA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended June 30, Taxes Levied for the Fiscal Year (1) 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 30,838,621 29,005,408 27,227,783 25,646,027 23,892,123 22,416,783 20,733,307 19,296,983 17,923,382 16,963,444 Notes: (1) Source: Maricopa County Treasurer's Office Maricopa County Assessor's Office City financial records and reports (2) Collected with the Fiscal Year of the Levy (2) Percentage Amount of Levy 30,110,875 28,595,241 27,003,934 25,375,055 23,599,465 21,914,662 20,589,725 18,955,264 17,596,843 16,695,651 97.64% 98.59% 99.18% 98.94% 98.78% 97.76% 99.31% 98.23% 98.18% 98.42% Table XIII Collections in Subsequent Years (2) (19,062) (134,101) (60,554) (7,264) 72,435 (84,771) 69,426 124,953 121,071 Levy figures obtained from Maricopa County Tax Levy Books-February Publication. Collection amount obtained from Maricopa County Treasurer's Secured Levy Report at 6/30/2025 140 Total Collections To Date Percentage Amount of Levy 30,110,875 28,576,178 26,869,833 25,314,501 23,592,201 21,987,097 20,504,954 19,024,690 17,721,796 16,816,721 97.64% 98.52% 98.69% 98.71% 98.74% 97.76% 98.90% 98.59% 98.88% 99.14% CITY OF PEORIA, ARIZONA UTILITY STATISTICAL DATA LAST TEN FISCAL YEARS Water Average bill % Increase Wastewater Average bill % Increase Residential Solid Waste Average bill % Increase Water # of Accounts % Increase Wastewater # of Accounts % Increase Residential Solid Waste # of Accounts % Increase Average Utility Bill Amounts Last Ten Fiscal Years 2019 2020 2016 (c) 2017 2018 $37.53 5.60% $39.13 4.26% $41.44 5.90% $42.15 1.71% $24.64 2.71% $25.22 2.35% $25.26 0.16% $13.44 0.67% $13.39 -0.37% $14.23 6.27% Table XIV 2021 2022 2023 2024 2025 $43.02 2.06% $43.87 1.98% $45.08 2.76% $46.35 2.82% $45.60 -1.61% $48.02 5.29% $26.60 5.30% $26.91 1.17% $27.29 1.41% $28.58 4.73% $29.05 1.64% $25.19 -13.29% $34.22 5.48% $14.42 1.34% $15.29 6.03% $16.21 6.02% $17.06 5.24% $17.96 5.28% $15.97 -11.09% $26.33 64.89% 2021 2022 2023 2024 2025 Utility Service Connections Last Ten Fiscal Years 2019 2020 2016 (c) 2017 2018 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% 63,575 0.34% 63,571 -0.01% 64,672 1.73% 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% 65,923 1.16% 66,282 0.54% 67,310 1.55% 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% 63,323 1.20% 63,692 0.58% 65,184 2.34% Charges for Water Services Base Minimum Monthly Bill As of June 30, 2025 Charges for Wastewater Services Base Minimum Monthly Bill As of June 30, 2025 Resid., Commerc. & Landscape Customers Multi Family Customers Meter Size Charge 5/8"-3/4" $ 21.24 Base Charge 1" 25.96 per Meter 1 1/2" 43.41 $11.06 2" 62.46 3" 113.33 Charge per 4" 170.50 Dwelling Unit 6" 329.21 $6.10 8" 519.76 Resid., Commerc. & Landscape Customers Multi Family Customers Base Charge per Meter $4.30 Charge per Dwelling Unit $3.90 Meter Size 5/8"-3/4" 1" 1 1/2" 2" 3" 4" 6" 8" Charge $ 10.84 10.84 25.95 38.95 73.68 112.68 221.01 351.05 (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 City and customer billingservice recordsand billing records (continued) 141 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, 2025 Residential Multiplex (per 1,000 gallons) (per 1,000 gallons) $ 1.53 $ 4.08 5.80 6.42 - Commercial (per 1,000 gallons) $ - 1,000+ - 4.08 - 0 - 10,000 10,001 - 50,000 50,000+ - - 1.53 4.08 5.80 Water Meter Permit Charges As of June 30, 2025 Charge Meter Size $ 379 3/4" 1" $ 723 - 1,016 1 1/2" $ 724 - 1,016 2" $ 864 - 1,186 3" $ 2,755 - 3,481 4" $ 3,186 - 3,883 6" $ 5,147 - 6,449 8" $ 7,509 - 10,111 Hydrant meter $ 2,832 Commercial accounts $ By meter size Charges for Residential Solid Waste As of June 30, 2025 Monthly fee $ 23.55 Single container & recycling 19.29 Additional container Charges for Storm Water As of June 30, 2025 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) 142 CITY OF PEORIA, ARIZONA UTILITY STATISTICAL DATA TEN LARGEST WATER USERS CURRENT YEAR AND NINE YEARS AGO Table XIV 2025 Entity Trilogy At Vistancia HOA Infinity Capital Golf TVAQ1 Community Assoc Blackstone Country Club Sunrise Water Company Sun Harbor Community Assoc Ventana Lakes N. of Beardsley Lake City of Peoria - Sports Complex City of Peoria - Right of Way Saddleback Peoria Partners LLC Desert Harbor Lake City of Peoria Padre's Pump Station Liberty High School Westwing Mountain HOA Sun Garden Park II HOA Sun Garden Mobile Home Park Centennial High School Polynesian Village Avg Monthly Water Usage 20,638 17,151 16,775 15,573 12,710 10,026 9,631 8,876 8,090 7,403 Type of User Commercial Landscape Golf Course Homeowner's Association Golf Course Water Company Health Care Facility Homeowner's Association Sports Complex Right of Way Landscape Residential Construction Homeowner's Association Sports Complex Public School Homeowner's Association Homeowner's Association Homeowner's Association Public School Homeowner's Association Water usage measured in thousands of gallons Source: City customer service and billing records (concluded) 143 Rank 1 2 3 4 5 6 7 8 9 10 2016 % Avg Monthly Water Usage 2.21% 1.84% 1.80% 1.67% 1.36% 1.07% 1.03% 0.95% 0.87% 0.79% Avg Monthly Water Usage 2,549 Rank 4 % Avg Monthly Water Usage 0.35% 3,702 3 0.51% 7,103 6,604 2,316 1,949 1,679 1,576 1,411 1,252 1 2 5 6 7 8 9 10 0.99% 0.92% 0.32% 0.27% 0.23% 0.22% 0.20% 0.17% Table XV 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 Leases SBITA 2016 $ Business-type Activities Water and Sewer Revenue Bonds WIFA Loans Leases 2017 170,995,550 73,257,994 2,508,814 40,575,685 - $ 24,622,433 78,549,337 - Fiscal Year 2019 2018 158,031,697 68,529,573 2,137,211 40,400,804 - $ 19,095,643 74,229,903 - $ 298,202,195 $ 289,408,390 $ 365,881,315 $ 362,219,137 $ 342,351,989 $ 391,427,511 $ $ 1,561.39 $ 1,515.08 $ 1,849.88 $ 1,822.49 $ 1,703.24 $ 1,886.41 $ 327,826,497 Total Debt Per Capita $ 2,378.08 $ 2,154.83 $ 1,903.06 5.7% 5.1% 4.4% 1,851.20 4.1% Source: City financial records. Debt schedule exhibits and Long-term liability activity footnote 144 3.8% $ 41,331,911 33,239,660 - 3.7% 174,891,326 3,724,398 24,222,767 19,621,324 25,450,008 32,546 2,927,106 $ 66,293,549 48,718,291 - 3.2% 182,957,316 7,063,285 23,469,990 15,747,839 24,604,581 15,048 1,915,184 $ 2025 $ 325,739,597 362,424,831 4,665,273 57,320,925 - 128,984,480 3,954,426 28,437,337 23,415,375 29,993,568 51,633 - 2024 8,412,062 62,724,636 - $ $ 2023 13,383,853 70,004,831 - 390,509,813 142,247,708 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 60,975,592 45,458,610 11,692 2.9% 167,948,306 14,582,003 21,147,213 11,799,618 19,900,057 6,014,307 4,003,815 $ 54,692,634 42,254,767 9,269 2.8% 229,790,000 15,072,930 16,810,000 7,771,351 21,245,000 5,385,134 12,625,135 43,755,000 38,966,213 6,748 2.8% 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 2017 2016 Bonded Debt (1) Less: $ 170,995,550 $ 144,412,048 Debt Service Reserves (2) Net Bonded Debt 2018 $ 158,031,697 $ 132,501,730 26,583,502 2019 $ 135,863,947 $ 119,976,753 25,529,967 2020 2021 $ 157,167,099 17,095,199 16,376,110 $ 140,071,900 $ 125,871,598 15,887,194 $ 142,247,708 2022 $ 128,984,480 $ 110,706,795 2023 $ 174,891,326 $ 155,217,985 18,277,685 2024 $ 182,957,316 $ 163,890,911 19,673,341 2025 $ 167,948,306 $ 147,120,056 19,066,405 $ 229,790,000 $ 203,862,117 20,828,250 25,927,883 Percentage of Net Bonded Debt to Full Cash Value 1.0% 0.9% 0.7% 0.8% 0.6% 0.5% 0.6% 0.6% 0.4% 0.5% Percentage of Net Bonded Debt to Assessed Value (3) 12.3% 10.6% 9.0% 9.7% 8.1% 6.7% 8.7% 8.7% 7.3% 9.5% Net Bonded Debt Per Capita $879 $788 $696 $796 $659 $569 $785 $825 $732 $982 Net Bonded Debt as a % of Personal Income 2.12% 1.87% 1.62% 1.77% 1.51% 1.25% 1.35% 1.33% 1.18% 1.48% (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 Sources - City debt service schedules & Long-term liability footnote. 145 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT - CURRENT FISCAL YEAR AS OF JUNE 30, 2025 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) 88,425,611,337 58,328,686,360 58,328,686,360 53,876,587,196 58,328,686,360 58,328,686,360 57,548,876,687 57,548,876,687 22,530,836,261 $ Percentage Applicable to City of Peoria (1) 2.42% 3.67% 3.67% 3.97% 3.67% 3.67% 3.72% 3.72% 9.51% 1,820,745,054 294,671,269 1,834,529 124,430,000 138,035,000 1,964,000 69.63% 8.29% 1.35% 86,640,609 11,443,102 26,514 98,110,225 131,901,604 $2,141,570,869 $244,862,930 100.00% 244,862,930 Total direct and overlapping debt $ 2,115,367 22,312,571 9,363,441 33,791,379 278,654,309 $ 376,764,534 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 Community Facilities Districts Bonds ($19,900,057) (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 146 Secondary Tax Rate per $100 Assessed Amount Applicable to City of Peoria 57,615,000 599,589,505 98,510,000 (4) Table XVII $ 0.06 0.15 0.05 0.01 0.27 0.14 0.18 1.81 2.23 0.13 $ 1.15 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT - CURRENT FISCAL YEAR AS OF JUNE 30, 2025 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) $ 88,425,611,337 58,328,686,360 58,328,686,360 53,876,587,196 58,328,686,360 58,328,686,360 57,548,876,687 57,548,876,687 22,530,836,261 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) $ 1,820,745,054 294,671,269 1,834,529 2,141,570,869 Percentage Applicable to City of Peoria (1) $ Table XVIII 57,615,000 98,510,000 2.42% 3.67% 3.67% 3.97% 3.67% 3.67% 3.72% 3.72% 9.51% 124,430,000 138,035,000 1,964,000 69.63% 8.29% 1.35% 86,640,609 11,443,102 26,514 98,110,225 109,589,033 100.00% 308,699,550 308,699,550 (5) Total direct and overlapping debt $ $ 2,115,367 9,363,441 11,478,808 320,178,358 418,288,583 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 147 Secondary Tax Rate per $100 Assessed Amount Applicable to City of Peoria $ 0.06 0.15 0.05 0.01 0.27 0.14 0.18 2.13 2.23 0.13 $ 1.15 CITY OF PEORIA, ARIZONA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT LAST TEN FISCAL YEARS Governmental Unit 2020 Fiscal Year 2021 2022 13,561,370 12,333,671 25,895,041 280,497,941 11,260,680 11,410,853 22,671,533 258,887,529 9,077,824 10,721,153 19,798,977 234,584,163 6,751,740 14,233,479 20,985,219 274,828,230 4,970,751 12,754,861 17,725,612 271,568,623 3,214,147 11,150,402 14,364,549 259,759,868 2,115,367 9,363,441 11,478,808 320,178,358 160,934,200 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 41,694 107,099,581 10,557,000 36,873 97,565,796 11,566,689 29,986 86,640,609 11,443,102 26,514 217,002,200 177,233,953 175,853,138 151,329,439 136,418,538 130,033,075 117,693,454 109,162,471 98,110,225 273,666,118 247,796,840 206,109,898 201,748,179 174,000,972 156,217,515 151,018,294 135,419,066 123,527,020 109,589,033 287,338,043 158,031,697 207,170,951 254,602,900 236,215,996 214,785,186 253,843,011 253,843,011 245,395,319 308,699,550 $ 561,004,161 $ 405,828,537 $ 413,280,849 456,351,079 $ 410,216,968 $ 371,002,701 $404,861,305 $389,262,077 $368,922,339 $418,288,583 2016 2017 2018 20,203,810 6,722,916 26,926,726 314,264,769 17,547,206 13,247,434 30,794,640 188,826,337 15,609,534 13,266,411 28,875,945 236,046,896 219,811,259 26,927,344 789 186,654,480 30,347,141 579 246,739,392 Total overlapping Direct (2): City of Peoria Overlapping: Community College District West MEC Vocational District 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 Total direct and overlapping debt Table XIX 2019 $ (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' ACFRs and official statements for debt of other entities 148 2023 2024 2025 CITY OF PEORIA, ARIZONA LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2017 2016 2018 2019 Fiscal Year Table XX 2020 2021 2022 2023 2024 2025 Property Assessed Value (1) $ 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 $ 1,890,818,254 $ 2,014,265,023 $ 2,141,570,869 6% Limitation Debt limit $ 70,681,020 $ 74,680,758 $ 80,404,093 $ 86,388,779 $ 93,403,260 $ 99,550,515 $ 106,858,443 $ 113,449,095 $ 120,855,901 $ 128,494,252 Total net debt applicable to limit Legal 6% Debt Margin 4,814,727 $ Total net debt applicable to the limit as a percentage of debt limit 20% Limitation Debt limit $ 6.8% $ Total net debt applicable to limit Legal 20% Debt Margin 65,866,293 4,149,727 235,603,399 Total net debt applicable to the limit as a percentage of debt limit 80,258,126 65.9% $ 5.6% $ 155,345,273 $ 70,531,031 2,999,727 248,935,859 104,845,586 57.9% $ 3.7% $ 144,090,273 $ 77,404,366 4,526,273 268,013,643 143,958,370 46.3% $ 5.2% $ 124,055,273 $ 81,862,506 941,273 287,962,598 146,308,871 $ 1.0% $ 141,653,727 $ 92,461,987 - 311,344,200 49.2% 174,632,343 43.9% $ 100,459,883 0.0% $ 136,711,857 $ 99,550,515 6,398,560 331,835,049 206,588,320 $ 356,194,811 $ 165,429,476 37.7% 149 53.6% 106,965,753 2,819,658 $ 5.7% $ 190,765,335 (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 $ 6.0% 125,246,729 $ 6,483,342 378,163,651 184,389,610 51.2% $ 2.3% $ 193,774,041 $ 118,036,243 3,089,281 402,853,005 2.4% $ 182,861,849 $ 219,991,156 45.4% 125,404,971 428,314,174 258,224,143 $ 170,090,031 60.3% CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - EXCISE TAX AND STATE SHARED REVENUE DEBT OBLIGATIONS GOVERNMENTAL PORTION LAST TEN FISCAL YEARS 2016 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 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 2017 $ $ 34.28 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 37.31 Fiscal Year 2020 2019 $ $ 39.00 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 $ $ 43.35 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 $ 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 2,535,000 1,091,061 3,626,061 $ 42.72 2022 $ $ 46.98 Table XXI 2023 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 $ 111,004,429 28,812,810 36,976,059 5,240,846 3,650,883 1,643,286 22,070,286 5,054,250 214,452,849 2,610,000 1,004,220 3,614,220 900,000 788,890 1,688,890 $ 52.96 126.98 187,795,197 19,363,508 207,158,705 $ 212,763,959 20,975,746 233,739,705 3,195,000 325,937 3,520,937 3,255,000 262,995 3,517,995 2024 $ $ 2025 113,682,082 29,902,735 52,432,815 5,506,906 5,211,692 1,804,263 25,237,591 16,892,307 250,670,391 2,480,000 1,021,610 3,501,610 $ $ 71.59 119,351,110 30,500,400 42,279,677 5,620,100 6,234,398 1,937,207 24,881,081 18,119,291 248,923,264 2,595,000 907,742 3,502,742 71.07 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: $ $ 121,566,339 12,231,059 133,797,398 2,385,000 1,545,500 3,930,500 34.04 $ $ 132,480,184 12,939,338 145,419,522 2,490,000 1,438,175 3,928,175 $ $ 142,377,577 13,977,877 156,355,454 2,665,000 1,114,408 3,779,408 37.02 41.37 $ $ 148,129,371 15,203,014 163,332,385 3,015,000 507,374 3,522,374 46.37 $ $ 151,552,473 16,080,887 167,633,360 3,065,000 447,978 3,512,978 $ 166,727,325 17,469,832 184,197,157 $ 47.72 (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 150 3,130,000 387,598 3,517,598 52.36 $ $ 58.84 $ 66.44 $ $ 247,168,781 21,831,212 268,999,993 3,310,000 198,872 3,508,872 76.66 $ $ 245,420,522 23,084,046 268,504,568 3,370,000 133,665 3,503,665 76.64 CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - WATER AND WASTEWATER REVENUE BONDS LAST TEN FISCAL YEARS Table XXII Fiscal Year 2017 2016 Gross Revenue (1) Operating and Maintenance Expenses (2) Net Revenue Available for Debt Service $ 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 $ 2023 75,671,386 61,522,222 14,149,164 $ 2024 2025 83,416,136 62,430,763 20,985,373 $ 101,684,311 64,198,439 37,485,872 $ 109,478,211 77,333,472 32,144,739 Development Fee Revenue Total Net Revenue 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 2,541,541 23,526,914 8,298,875 45,784,747 7,694,384 39,839,123 Debt Service Requirements Principal (3) Interest (4) Total Debt Service Requirements 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 7,819,681 2,955,952 10,775,633 8,728,843 2,606,130 11,334,973 10,488,101 2,221,435 $ 12,709,536 $ $ $ $ $ $ $ $ $ Ratio of Total Net Revenue/ Total Bond Expense 2.57 2.60 2.72 2.54 2.44 0.71 2.07 2.18 4.04 3.13 Ratio of Net Available/ Total Bond Expense (5) 2.16 2.13 2.28 2.08 1.91 0.54 1.39 1.95 3.31 2.53 (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 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Repayment schedules for debt serviced by the Water and Sewer Utility Enterprise Funds 151 CITY OF PEORIA, ARIZONA PLEDGED REVENUE COVERAGE - SPECIAL ASSESSMENT BONDS LAST TEN FISCAL YEARS Pledged Revenues (1) Debt Service Requirements Principal Interest (2) Total Annual Requirements 2016 2017 2018 $ 1,078,196 $ 2,787,558 $ 2,130,000 355,000 121,338 476,338 370,000 106,250 476,250 2,130,000 90,825 $ 2,220,825 5.85 0.96 $ Estimated Coverage 2.26 $ Fiscal Year 2020 2019 $ - $ - $ - $ - Table XXIII 2021 2022 $ - $ - 2023 $ - $ - - $ - $ - - (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 152 2024 - $ - $ - 2025 $ - $ - Table XXIV CITY OF PEORIA, ARIZONA SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Current Assessments Due Assessments Collected Prepaid Assessments Collected Total Assessments Collected (1) $ 2016 (3) 381,950 2017 (4) $344,741 $ 381,950 381,950 344,741 1,809,173 $2,153,914 100.0% 100.0% Ratio of Current Collections to Amount Due Outstanding Assessment Principal (2) $ 2,036,876 $ - $ 2018 - $ $ 2019 $ N/A $ - Fiscal Year 2020 $ - - - $ N/A - $ $ $ - $ N/A - 2021 - $ - $ - (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 $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. (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 $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. $ 2023 - $ N/A (2) Principal only. Assessments Receivable on Balance Sheet-Governmental Funds may include delinquent administrative charges, interest and penalties. 153 2022 $ 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 $ $ $ - $ N/A - 2024 $ 2025 - $ - N/A - $ N/A - $ - Table XXV CITY OF PEORIA, ARIZONA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Population (1) 164,212 168,192 172,263 175,961 190,985 194,517 197,786 198,750 201,001 207,499 Personal Income (in thousands) (2) 6,701,656 7,100,730 7,596,109 8,116,201 9,179,694 10,085,901 11,532,506 12,290,700 12,429,701 13,770,671 Per Capita Personal Income (3) 40,811 42,218 44,096 46,125 48,065 51,851 58,308 61,840 61,839 66,365 Median Age (4) 36.9 41.6 41.0 39.5 38.2 38.5 42.7 41.0 41.0 42.1 Public School Enrollment (5) 34,966 34,912 35,388 35,490 35,784 34,030 34,495 34,557 34,443 34,373 Unemployment Rate (6) 4.9% 4.2% 4.0% 4.3% 9.3% 6.6% 3.4% 3.9% 3.5% 4.0% (1) City population for the most current year based on World Population Review estimates and prior year data is from the U.S. Census Bureau. (2) Peoria personal income calculated by multiplying Phoenix Metropolitan Statistical Area (MSA) per capita income times Peoria population divided by 1,000. (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 154 Table XXVI CITY OF PEORIA, ARIZONA MAJOR EMPLOYERS WITHIN THE CITY CURRENT YEAR AND NINE YEARS AGO 2025 Employer Peoria Unified School District City of Peoria Fry's Food Stores (Multiple Locations) Walmart (Multiple Locations) Target Stores Inc (Multiple Locations) Plaza Del Rio Campus/Freedom Plaza & Care Center Safeway (Multiple Locations) Banner Health Immanuel Campus of Care Home Depot (Multiple Locations) McDonalds (Multiple Locations) Brookdale Senior Living The Antigua Group Inc Oak Craft Inc Arizona Medical Clinic Total Total City Employment # of Employees 3,950 1,431 952 812 638 531 521 363 354 334 Rank 1 2 3 4 5 6 7 8 9 10 9,886 Percentage of Total City Employment 3.9% 1.4% 0.9% 0.8% 0.6% 0.5% 0.5% 0.4% 0.3% 0.3% 0.0% 2016 # of Employees 3,818 1,143 523 621 383 Rank 1 2 5 4 6 345 778 313 325 300 8,549 7 3 9 8 10 9.7% 101,548 82,395 Sources: City of Peoria Economic Development Department, Maricopa Association of Governments Employer Database, and the U.S. Bureau of Labor Statistics. 155 Percentage of Total City Employment 4.6% 1.4% 0.6% 0.8% 0.5% 0.4% 0.9% 0.4% 0.4% 0.4% 10.4% 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 2016 General Government City Manager Office of Communications Human Resources Attorney City Clerk Court Economic Development*** Finance & Budget Arts, 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: 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 19.00 10.00 21.50 29.00 6.50 23.45 7.00 79.00 161.85 323.00 241.00 14.00 72.00 42.8 59.95 11.00 67.50 37.50 64.00 47.00 17.90 19.00 10.00 22.50 29.00 6.50 22.00 8.00 78.00 164.15 349.00 244.00 14.00 70.00 43.8 61.95 11.50 68.50 41.50 64.00 46.00 16.10 17.00 10.00 24.00 28.00 8.00 22.00 7.00 79.00 181.90 363.00 261.00 15.00 70.00 45.8 60.2 11.50 69.50 43.50 65.00 46.00 15.10 1,145.62 1,191.87 1,203.60 1,249.35 1,277.95 1,286.95 1,348.26 1,354.95 1,389.50 1,442.50 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 156 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 2016 Fiscal Year 2017 93,916 N/A CITY OF PEORIA, ARIZONA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Table XXVIII 2018 2019 2020 2021 2022 2023 2024 2025 101,881 76.7% 102,460 N/A 109,073 36.48% 113,282 41.33% 124,458 83.87% 118,397 N/A 119,718 67.66% 118,031 42.41% 132,855 83.25% 104,544 5,166 71,300 109,220 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 18,108 7,128 110,750 24,612 5,856 104,270 26,703 5,902 89,214 53,256 5.13 (C) 55,136 5.40 (C) 53,574 5.33 (C) 51,127 5.28 51,081 5.23 51,162 5.36 55,197 5.47 54,497 5.25 54,656 5.12 54,325 4.56 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) 28,509 6:22(A) 28,505 5:55(A) 27,961 6:12(A) 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 4,369 $164.3 4,571 $355.0 4,098 $289.0 1,289 4,118 296 1,930 6,199 1,551(G) 1,566 5,052 0(G) 1,394 6,405 0(G) 2,189 7,205 (G) 867 2,496 8,555 0(G) 1,174 8363 0(G) 1,185 8,719 0(G) 1,688 8,415 0(G) 2,058 10,126 0(G) 5,558 5,732 5,416 5,592 5,385 4957 4821 4857 4783 4878 749 30,756 585 27,241 599 28,033 599 22,954 387 22,257 399 15,987 425 21,878 402 22,656 401 19,699 444 19,561 8,650,664 9,488,059 9,950,302 9,630,290 9,660,709 10,661,260 10,197,595 9,640,256 10,228,494 10,651,972 3.78 3.87 3.98 4.13 4.21 4.29 4.36 4.41 4.41 4.46 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 66,290 19,001 17,070 65,850 18,313 16,950 64,345 17,263 16,754 240,111 339 204 227,646 333 210 201,272 335 196 180,190 340 182 93,932 245 133 51,067 255 105 78,928 207 112 217,530 291 135 170,853 295 155 212,514 305 185 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 (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 157 Table XXIX CITY OF PEORIA, ARIZONA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Governmental Activities: General Government Annexed Area (square miles) Culture & Recreation # of Neighborhood Parks Total Neighborhood Park Acreage # of Community Parks Total Community Park Acreage Public Safety Police Stations Marked Patrol Vehicles (units) Fire Stations (full-time / part-time) Number of Fire Engines (B) Number of Ladder Trucks Highways & Streets Streets (miles maintained) Crack Seal Application (linear feet) Surface Treatments (lane miles) Public Works Street Lights Vehicles in Fleet Water Services Number of Pump Stations Number of Lift Stations Number of Wells Number of Reservoirs Human Services Dial-a-Ride Buses Business-type Activities Water Utility Number of Water Accounts Storage Capacity (million gal) Wastewater Utility Number of Wastewater Accounts Treatment Capacity million gallon per day (MGD) Solid Waste Utility Number of Solid Waste Accounts Stadium Number of Practice Fields Number of Clubhouses Total Complex Acreage (C) 2016 2017 2018 Fiscal Year 2019 2020 2021 2022 2023 2024 2025 179.1 179.1 179.1 179.1 179.1 179.1 179.1 179.1 179.1 179.1 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 36 314 3 225 37 314 3 225 37 314 3 225 2 90 2 91 2 92 2 98 2 105 2 106 2 108 2 111 2 115 2 124 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 8/0 8 2 8/0 8 2 8/0 8 2 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 1,668 2,549,676 99 1,693 3,246,695 157 1,679 4,441,438 167 15,565 778 15,722 795 15,973 840 16,152 842 16,493 878 16,896 953 17,235 969 17,251 971 14,434 1019 17,432 1037 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 27 15 47 34 27 18 47 34 27 18 48 34 5 5 5 6 4 6 6 6 6 6 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 63,575 43.0 63,571 43.0 64,672 43.0 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 65,923 16.25 66,282 16.25 67,310 16.25 54,262 55,828 57,452 58,816 60,123 61,332 62,575 63,323 63,692 65,184 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 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 158 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. 19 Continuing Disclosures Annual Report For the Year Ended June 30, 2025 Audited Financial Statements The City’s Annual Comprehensive Financial Report for fiscal year ended June 30, 2025, 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 135 Comparison of assessed value to full cash value Table VIII 135 Comparative assessed values Table IX 136 Direct and overlapping assessed values Direct and overlapping tax rates Table XVII Table X 146 137 Property tax levies and collections Table XIII 140 Direct and overlapping general obligation bonds Direct general obligation debt ratios Table XVII Table XVI 146 145 Legal debt margin and unused borrowing capacity Table XX 149 Net revenues and debt service coverage Table XXII 151 Number of utility service connections Table XIVa 141 Ten largest water users Table XIVc 143 Municipal Development Authority Bonds (CUSIP 71284R and 71285A) Excise tax and state shared revenues and debt service coverage Table XXI 150 Privilege and use tax rates by category Table VI 133 Annual debt service requirements Table XXI 150 Legal debt margin and unused borrowing capacity Table XX 149 Assessed values by property classification Table VIII 135 Property tax levies and collections Table XIII 140 Special assessment collections Table XXIV 153 Water and Wastewater Revenue Bonds (CUSIP 712851) Improvement District Bonds (CUSIP 712844) 160 City of Peoria FINANCE AND BUDGET DEPARTMENT 8401 West Monroe Street Peoria, Arizona 85345 www.peoriaaz.gov