ML14036A053
| ML14036A053 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 06/30/2013 |
| From: | City of Anaheim, CA |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| Download: ML14036A053 (158) | |
Text
YEAR ENDED JUNE 30, 2013
JORDA :RNDA KRI MURYTMTI0UILEK GGI ATA Inro ucor CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2013 Page INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 7 Organization Chart 9 Administrative Personnel 10 FINANCIAL SECTION Independent Auditors' Report 11 Management's Discussion and Analysis (Unaudited) 13 Basic Financial Statements Government wide Financial Statements Statement of Net Position 25 Statement of Activities 27 Fund Financial Statements Balance Sheet - Governmental Funds 29 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 30 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 31 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32 Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Budgetary Basic Actual - General Fund 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basic Actual - Housing Authority 34 Statement of Net Position - Proprietary Funds 35 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 37 Statement of Cash Flows - Proprietary Funds 38 Statement of Fiduciary Net Position (Deficit) 41 Statement of Changes In Fiduciary Not Position (Deficit) 43 Notes to the Financial Statements 45 Required Supplementary Information (Unaudited) 85 Combining Individual Fund Statements and Schedules Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds by Fund Type 87 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds by Fund Type 88 Combining Balance Sheet - Nonmajor Special Revenue Funds 89 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Nonmajor Special Revenue Funds 91 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Actual - All Nonmajor Special Revenue Funds 93 (continued)
CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2013 (continued)
Page Combining Balance Sheet - Nonmajor Debt Service Funds 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds 99 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Debt Service Funds 100 Combining Balance Sheet - Nonmajor Capital Projects Funds 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Nonmajor Capital Projects Funds 103 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Budgetary Basis Actual - All Capital Projects Funds 104 Internal Service Funds Combining Statement of Net Position - Internal Service Funds 107 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 108 Combining Statement of Cash Flows - Internal Service Funds 109 Fiduciary Funds Statement of Changes in Fiduciary Assets and Liabilities - Agency Fund - Mello Roos 11 STATISTICAL SECTION (Unaudlted)
Net Position by Component - Last Ten Fiscal Years 114 Changes in Net Position - Last Ten Fiscal Years 115 Governmental Activities Tax Revenues by Source - Last Ten Fiscal Years 117 Fund Balances of Governmental Funds - Last Ten Fiscal Years 118 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 119 General Government Tax Revenues by Source - Last Ten Fiscal Years 120 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 121 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 122 Principal Property Tax Payers - Current Year and Nine Years Ago 123 Property Tax Levies and Collections - Last Ten Fiscal Years 124 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 125 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 126 Direct and Overlapping Governmental Activities Debt- as of June 30, 2013 127 Legal Debt Margin - Last Ten Fiscal Years 129 Pledged Revenue Coverage - Last Ten Fiscal Years 130 Demographic and Economic Statistics - Last Ten Fiscal Years 134 Principal Employers - Current Year and Nine Years Ago 135 Full time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 137 Operating Indicators by Function - Last Ten Fiscal Years 138 Capitol Assets Statistics by Function - Last Ten Fiscal Years 140 City of Anaheim Map 142
CITY OF ANAHEIM City of Anaheim, California Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a Finance Department narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
ECONOMIC CONDITION AND OUTLOOK December 17, 2013 The City is located in northwestern Orange County, about 28 miles southeast of downtown Los Angeles and 90 miles north of To the Honorable Mayor and City Council San Diego. The City lies on a coastal plain, which is bordered City of Anaheim by the Pacific Ocean to the west and the Santa Ana Anaheim, California Mountains to the east. The City is the oldest and most populous city in Orange County. Anaheim is home to the Disneyland In accordance with the Charter of the City of Anaheim (City), Resort, the Anaheim Convention Center, and two major we are submitting the Comprehensive Annual Financial Report league professional sports teams-the Los Angeles Angels of (CAFR) for the fiscal year ended June 30, 2013. Responsibility Anaheim American League Baseball team that utilizes the for both the accuracy of the data and the completeness and Angel Stadium of Anaheim, and the Anaheim Ducks National fairness of the presentation, including all disclosures, rests with Hockey League team that utilizes the Honda Center.
the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to Anaheim and Orange County are home to a wide spectrum of fairly set forth the financial position and results of operations of industries-more than 8,000 manufacturing plants are located in the City, as measured by the financial activity of its various the county, most notably defense and aerospace, biomedical, funds; and that all disclosures necessary to enable the reader electronics, machinery, and computer product manufacturers.
to gain maximum understanding of the City's financial activities The City has over 20,000 active business licenses, of which have been included. 15,500 are businesses operating within the City's boundaries.
The City Charter requires an annual audit of the financial The unemployment rate in Anaheim for June 2013 was 7.9%,
statements of the City by an independent certified public which is above the national average (7.6%) but below the accountant. Accordingly, this year's audit was completed by state average (8.5%).
KPMG LLP. In addition to meeting the requirements set forth in the City Charter, the audit was also designed to meet the As the City moves into fiscal year 2013/14, we are able to do so with requirements of the Single Audit Act Amendments of 1996 and a more optimistic tone than we have been able to in quite some related OMB Circular A-133. The auditors' report on the basic time. After enduring a slow recovery from the Great Recession, financial statements is included in the financial section of this the economy is beginning to ramp up. The City's three largest report. The auditors' reports related specifically to the single revenue sources, transient occupancy tax, sales and use tax, audit are presented as a separate document. and property tax, all have exceeded their budgets this year I
CITY OF ANAHEIM and we expect the growth to continue into fiscal year 2013/14 and beyond. The fiscal year 2013/14 budget also outlines plans for a new neighborhood center, the Miraloma Family Resource Center, MAJOR INITIATIVES which will be constructed on an isolated pocket of land between the 91 and 57 Freeways. Site amenities include a City management, under the direction of the Mayor and City two-acre park, a perimeter loop trail, a skate plaza, outdoor Council, identifies priorities that will determine the path of the classroom area, and picnic facilities. This resource center, City's future. Initiatives are reevaluated regularly, and new along with the other numerous community Improvement ones added, to ensure that they are consistent with the projects in development, will provide much needed priorities of our policy body and the community. Through a recreational space to the parts of the City that need it most.
commitment to position the City of Anaheim to better fulfill its mission of delivering outstanding municipal services that are Near the central part of Anaheim, the City has plans to responsive to our entire community, the City of Anaheim is construct a half-acre park site near Guinida Lane and Paul continuing its tradition of innovation, ingenuity, and Revere Elementary, known as Paul Revere Park. To further opportunity by focusing on community needs, building inspire civic pride, neighborhood children were asked to draw neighborhood connections, and governing for results that images of what they envisioned Paul Revere would have seen strengthen communities. The City's dedication to improvement on his infamous ride. These images will be integrated into a and modernization has created an environment where glass mosaic mural that will be displayed at the park's residents and businesses are free to choose how best to enjoy entrance to represent a personal contribution from the all that Anaheim has to offer. community.
INVESTING IN OUR NEIGHBORHOODS: Strong ties are created This City also plans for the construction of a new community when a community lives well with one another. Anaheim takes center at Ponderosa Park, replacing the Ponderosa Family pride in the fact that there is a strong set of culturally diverse Resource Center that was originally built in the 1960s. Utilizing traditions that exist within its almost 50 square mile boundaries. input from local residents, the City will be constructing a It is vital that we provide opportunities to build relations and community center with a state-of-the-art gymnasium. The new develop infrastructure throughout the City that will facilitate center, together with the new Ponderosa Library will serve as a involvement from neighbors to help make the community critical resource to the thousands of residents each month who stronger and more resilient. participate in City classes and receive numerous family services.
The City has already begun to see an improvement to our parks, most notably, a new playground in the west area, at And finally, our efforts to encourage healthy living and provide Schweitzer Park. As the third project of its kind, this playground greater connections between our communities are highlighted offers more than a safe place to play; it provides opportunities in our Outdoor Connectivity Plan - an urban greening project for the community to connect. In less than eight hours, this that will outline new bike paths and walking trails. This plan playground was fully assembled thanks to the help of more represents more than new walking trails, it encompasses a than 200 volunteers, including local residents, key community system of green corridors that will connect residents, visitors agencies and the City team. and employees to high density urban areas. Traveling under 2
CITY OF ANAHEIM shade trees and through pocket parks and demonstration equipment to provide more flexibility and better response to all gardens, our residents and visitors will have the opportunity to types of fire and rescue situations.
be fully integrated with the space, and experience the journey rather than merely the end destination. IMPROVING OUR INFRASTRUCTURE: Routine maintenance certainly helps to sustain our existing infrastructure, but COMMITTMENT TO PUBLIC SAFETY: Anaheim continues to be Anaheim also strives to use these opportunities to beautify our one of the safest cities in America for our size; nevertheless we neighborhoods and improve the livability of our community.
recognize the need to invest in our public safety personnel to Therefore, plans are in place to install landscape where there is meet the challenges of a growing city. sparse right-of-way space, repave our roadways to improve traffic flow, and upgrade our sidewalks to enhance the safety The fiscal year 2013/14 budget provides for new officers, and the of our community members.
Police Department outlines a commitment to the principles of community policing and crime prevention. In order to We will be embarking on substantial infrastructure upgrades, empower our residents to deter and prevent crime in their own like the Brookhurst Street Widening project. By adding raised neighborhoods, the City will expand initiatives that bolster medians and widening the street to three lanes in each community outreach to neighborhoods and youth. Some of direction between Ball Road and Katella Avenue, this project these programs include the Gang Reduction and Intervention will improve the flow of traffic and create a seamless transition Partnership (GRIP), Safe Schools, Cops 4 Kids, the Junior Cadet from one major corridor to the next. A successful model of this Program and the Police Explorer Program. was the completion of Gene Autry Way, an overpass allowing residents and visitors to easily access the Disneyland Resort, Moreover, the Anaheim Police Department is dedicated to Angel Stadium of Anaheim, and Honda Center.
strengthening its relationship with the community through enhanced customer service and transparency initiatives all To support the economic growth in the Anaheim Canyon aimed at expanding the level of service to our community. Business Center and the increased traffic demand from the new Kaiser Permanente Hospital, enhancements will be made Within the Fire Department, implementation of the to the intersection of Tustin Avenue and La Palma Avenue. The department's 2013-2018 Strategic Plan is underway. The City has plans to widen Tustin and La Palma, adding additional recently adopted Anaheim Fire and Rescue Strategic Plan was through lanes, as well as a left-turn lane, to relieve traffic an effort that involved City departments and community congestion and enhance street aesthetics.
stakeholders. These stakeholders reviewed existing fire and medical services and identified ways for the department to Additionally, investments in well-established programs like the adapt and reorganize itself to meet future challenges and Anaheim Public Utilities Underground Conversion Plan help to expectations. As part of this plan, the fiscal year 2013/14 budget beautify our streetscapes and modernize the local electric grid provides funding to add an additional fire engine in service while providing lasting service reliability for our residents and and funding for signal pre-emption technology that allows for businesses. Now entering its 23rd year, the City's Underground safer and more efficient flow of emergency vehicles within our Conversion Program is more than halfway complete; community. The department will also replace two aged upcoming phases include upgrades to Lincoln Avenue from engines, upgrade cardiac monitors, and acquire new 3
CITY OF ANAHEIM Magnolia Avenue to Knott Avenue and Brookhurst Street from Plaza. The Grand Plaza esplanade is the sixth major Ball Road to Orange Avenue. construction project at the Anaheim Convention Center since it opened in 1967 and is a critical new investment aimed at MAINTAINING A WORLD CLASS DESTINATION: Enhancements keeping our destination attractive for guests both locally and to the Anaheim Resort, which welcomes over 20 million visitors from around the world. Moreover, the project sets the stage for annually, the Platinum Triangle, and Downtown Anaheim are future expansions to the Convention Center providing more critical to the future of our City. These economic engines allow flexible meeting space to attract larger and more diverse us to grow our General Fund revenues and ultimately provide meeting groups, which promote economic growth for our City.
funding for a vast majority of the neighborhood improvement projects around our community. FINANCIAL INFORMATION A critical piece of our future growth in Anaheim is the Management of the City is responsible for establishing and development of smart transportation solutions that link our maintaining internal control designed to ensure that the assets residents and visitors to the entertainment and job centers of the government are protected from loss, theft, or misuse, within the region. The first piece of this connection is the and to ensure that adequate accounting data are compiled Anaheim Regional Transportation Intermodal Center (ARTIC), to allow for the preparation of financial statements in which is fully funded and near completion. Scheduled to open conformity with U.S. generally accepted accounting principles.
in 2014, ARTIC will provide a functional link among all transit Internal control is designed to provide reasonable, but not modes in the area and will be a valuable addition to the City's absolute, assurance that these objectives are met. The economic base. concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be Building on the momentum of the ARTIC project, the City, derived; and (2) the valuation of costs and benefits requires together with the Orange County Transportation Authority estimates and judgments by management.
(OCTA), continues to plan for a new fixed guideway system that will tie together all the key assets within the City. The This report consists of management's representations Anaheim Rapid Connection (ARC) project is a significant concerning the finances of the City. As a result, management piece of Anaheim's long term transportation plan for the assumes full responsibility for the completeness and reliability of region, providing our residents and visitors with a safe, all of the information presented in this report. Management convenient and efficient connection between the Anaheim asserts that, to the best of their knowledge and belief, this Resort and the Platinum Triangle. For residents, visitors and financial report is complete and reliable in all material businesses, ARC provides a convenient way to enjoy all that respects.
Anaheim has to offer, while relieving traffic and paving the way for new investment and economic growth right here in BUDGETARY CONTROLS: The City maintains budgetary controls, Anaheim. the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget Finally, the City continues to grow and enhance the Anaheim approved by the City Council. Activities of the General Fund, Convention Center with the recent completion of a new special revenue funds, debt service funds, capital projects 100,000 square foot outdoor meeting space called the Grand funds, and all the proprietary funds are included in the annual 4
CITY OF ANAHEIM appropriated budget. The level of budgetary control (that is, submitted and annually updated, in its present form, since the level at which expenditures cannot legally exceed the 1982, for effective long-range planning purposes. It is City appropriated amount) is established at the departmental Management's belief that these two plans give City Council level. The City also maintains an encumbrance accounting members an expanded opportunity to set policy and provide system as one technique of accomplishing budgetary control. direction for implementation, resulting in improved Encumbrances generally are re-appropriated as part of the management efficiency and improved financial results.
following year's budget.
AWARD RELEVANT FINANCIAL POLICIES: Over the years, through sound fiscal management, the City has positioned itself well to GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED weather economic downturns, create a positive atmosphere STATES AND CANADA (GFOA) CERTIFICATE OF ACHIEVEMENT for economic development, and allow flexibility in addressing AWARD: The GFOA awarded a Certificate of Achievement for budgetary challenges. As of June 30, 2013, the City's General Excellence in Financial Reporting to the City of Anaheim, Fund has a spendable, unassigned fund balance of $26.9 California, for its comprehensive annual financial report for the million, which represents 11% of total expenditures. fiscal year ended June 30, 2012. This was the 37th consecutive Traditionally, the policy has been to maintain General Fund year that the City has achieved this prestigious award (fiscal reserves at a minimum of 7 to 10% of expenditures. years ended June 30, 1976 through 2012). In order to be awarded the Certificate of Achievement, a government must Further, the City has a long-standing practice of recognizing publish an easily readable and efficiently organized and reserving for known and anticipated liabilities. The City comprehensive annual financial report. This report must satisfy fully funds its compensated absences and self insurance both U.S. generally accepted accounting principles and liabilities. Additionally, the City has established an irrevocable applicable legal requirements. A Certificate of Achievement is trust for other post-employment benefits (also known as retiree valid for a period of one year only. We believe our current medical) and continues to make the annual required comprehensive annual financial report continues to conform contribution (ARC) to ensure this future obligation is fully to the Certificate of Achievement Program's requirements and funded. we are submitting it to GFOA to determine its eligibility for another certificate.
_LONG-TERM FINANCIAL PLANNING: On June 18, 2013, the City Council adopted the fiscal year 2014 budget. Additionally, as ACKNOWLEDGMENTS a companion to approving the budget plan, a five-year Capital Improvement Plan was presented to the City Council. The preparation of this report on a timely basis is a team effort The five-year plan links anticipated expenditures for involving many dedicated people across the entire infrastructure development with community needs and desires, organization. I would like to extend a special thanks to the and provides a citywide perspective of recommended talented finance professionals throughout the City, led by projects and proposed funding sources. The Capital Peggy Au, Financial Accounting Manager. Appreciation is also Improvement Plan was finalized in June 2013, and totaled expressed to Mayor Tom Tait, Mayor ProTem Gail Eastman, and
$613.3 million for the five-year fiscal period ending June 30, Assistant City Manager Paul Emery for their significant 2018. The five-year Capital Improvement Plan has been contributions as members of the Audit Committee. In closing, 5
CITY OF ANAHEIM without the leadership and support of the City Council, preparation and results of this report would not have been possible. Its leadership has made possible the implementation of these important and innovative concepts in fiscal management by the City.
Respectfully submitted, Marcie L. Edwards Deborah A. Moreno City Manager Finance Director 6
CITY OF ANAHEIM 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 of Anaheim, California for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. The Certificate of Achievement is a prestigious national award recognizing Governrent Finance Officers Association conformance with the highest standards for preparation of state and local government financial reports.
Certificate of In order to be awarded a Certificate of Achievement, a Achievement governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, for Excellence whose contents conform to program standards. Such reports in Financial must satisfy both generally accepted accounting principles and applicable legal requirements.
Reporting A Certificate of Achievement is valid for a period of one year Presented to only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are City of Anaheim submitting it to GFOA.
California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012 Executive Director/CEO 7
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Ciizn of Anhi ElectedPolicy Maker Council Appointed Officers Appointed Boards and Commissions I
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Special Projects Ma a e
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External 4Aftalts Initiatives and intergovernmental Related Communications Relations Strategic Planning Council Appointee Uaison COMMUNITY PUIUC WORKS FINANCE CONVENTION, POUCE SPORTS, AND PUBUC FRIRE PLANNING COMMUNITY HUMAN SERVICES Budget and UTILITES ENTERTAINMENT DEVELOPMENT RESOURCES Engineering Special Operations Support Services Planning Parks Operations Accounting Convention Center Joint Services Operations Services Workforce Recruitment and Fire and Rescue GolfOperations Fleet and Facility Purchasing Visitor and Concestion Water Services Operations Support Operations Building Servicies Development Employee Services Information Bureau Financial Investigations Housing Development Recreation / FirePrevention Community Human and Construction Services Management Preservation a nd Authority Benefits Stadium Operatons Emergency Neighborhood Services Services Management Licensing Assets and Employee Services Arena Operations Relations Electric Services and Grants Financial and Grove Operations Library Services Administrative Preparedness Community Risk Services Investment Management 9
CITY OF ANAHEIM Administrative Personnel December 17, 2013 City Manager Marcie L. Edwards Assistant City Manager Paul Emery Deputy City Manager Greg Garcia Deputy City Manager Kristine Ridge Chief of Police Raul Quezada City Attorney Michael R.W. Houston City Clerk Linda N. Andal City Treasurer Henry W. Stern Community Development Executive Director John E. Woodhead IV Community Services Director Terry D. Lowe Convention, Sports & Entertainment Executive Director Thomas Morton Finance Director Deborah A. Moreno Fire Chief Randy R. Bruegman Planning Director Sheri Vander Dussen Public Utilities General Manager Dukku Lee Public Works Director Natalie Meeks 10
Fiaca Seto
LimMI 1-ý KPMG LLP Suite 700 20 Pacifica Irvine, CA 92618-3391 Independent Auditors' Report The Honorable Mayor and City Council An audit involves performing procedures to obtain audit evidence about City of Anaheim, California: the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether We have audited the accompanying financial statements of the due to fraud or error. In making those risk assessments, the auditor governmental activities, the business type activities, each major fund, considers internal control relevant to the entity's preparation and fair and the aggregate remaining fund information of the City of Anaheim, presentation of the financial statements in order to design audit California (the City), as of and for the year ended June 30, 2013, and the procedures that are appropriate in the circumstances, but not for the related notes to the financial statements, which collectively comprise the purpose of expressing an opinion on the effectiveness of the entity's City's basic financial statements as listed in the table of contents. internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and Management'sResponsibility for the FinancialStatements the reasonableness of significant accounting estimates made by Management is responsible for the preparation and fair presentation of management, as well as evaluating the overall presentation of the these financial statements in accordance with U.S. generally accepted financial statements.
accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair We believe that the audit evidence we have obtained is sufficient and presentation of financial statements that are free from material appropriate to provide a basis for our audit opinions.
misstatement, whether due to fraud or error.
Opinions Auditors' Responsibility In our opinion, the financial statements referred to above present fairly, in Our responsibility is to express opinions on these financial statements all material respects, the respective financial position of the based on our audit, We conducted our audit in accordance with governmental activities, the business-type activities, each major fund, auditing standards generally accepted in the United States of America and the aggregate remaining fund information of the City of Anaheim, and the standards applicable to financial audits contained in California, as of June 30, 2013, and the respective changes in financial Government Auditing Standards, issued by the Comptroller General of position, and where applicable, cash flows thereof and the budgetary the United States, Those standards require that we plan and perform the comparison for the General and Housing Authority Fund for the year then audit to obtain reasonable assurance about whether the financial ended in accordance with U.S. generally accepted accounting statements are free from material misstatement, principles.
KPMG LLP Is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative
("KPMG Internationall), a Swiss entity. I1I
MRAPP Emphasis of Matter The combining individual fund statements and schedules are the responsibility of management and were derived from and relate directly As discussed in note 2 to the financial statements, the City adopted to the underlying accounting and other records used to prepare the Government Accounting Standards Board Statement No .65, Items basic financial statements, Such information has been subjected to the previously reported as Assets and Liabilities. Application of this statement auditing procedures applied in the audit of the basic financial statements was effective as of July 1, 2012. and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records OtherMatters used to prepare the basic financial statements or to the basic financial Required Supplementary Information statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of U.S. generally accepted accounting principles require that the America. In our opinion, the combining individual fund statements and management's discussion and analysis on pages 13 through 24 and the schedules are fairly stated in all material respects in relation to the basic schedules of funding progress on page 85 be presented to supplement financial statements as a whole.
the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental The introductory section and statistical section have not been subjected Accounting Standards Board who considers it to be an essential part of to the auditing procedures applied in the audit of the basic financial financial reporting for placing the basic financial statements in an statements, and accordingly, we do not express an opinion or provide appropriate operational, economic, or historical context. We have any assurance on them.
applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in Other Reporting Required by Government Auditing Standards the United States of America, which consisted of inquiries of In accordance with Government Auditing Standards,we have also issued management about the methods of preparing the information and our report dated December 17, 2013 on our consideration of the City's comparing the information for consistency with management's responses internal control over financial reporting and on our tests of its compliance to our inquiries, the basic financial statements, and other knowledge we with certain provisions of laws, regulations, contracts, and grant obtained during our audit of the basic financial statements. We do not agreements and other matters. The purpose of that report is to describe express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to the scope of our testing of internal control over financial reporting and express an opinion or provide any assurance. compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report Supplementary and OtherInformation is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the City's internal control over financial Our audit was conducted for the purpose of forming opinions on the reporting and compliance.
financial statements that collectively comprise the City's basic financial statements, The accompanying introductory section, combining Individual fund statements and schedules and the statistical section as PLL'P listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. December 17, 2013 Irvine, California 12
Maaemn' Disusio an Analysi
CITY OF ANAHEIM Management's Discussion and Analysis Government-wlde ftnancIal statements. The government-wide financial statements are comprised of the Statement of Net Position and the Statement of Activities. These two statements are designed to provide (Unaudited) readers with a brood overview of the City's finances utilizing the full accrual method of accounting, in a manner similar to a private-sector As management of the City of Anaheim (City), we offer readers of the business. Under the full accrual method of accounting, transactions are City's basic financial statements this narrative overview and analysis of the reported as soon as the underlying event giving rise to the change occurs, financial activities of the City as of and for the fiscal year ended June 30, regardless of the timing of related cash flows. Thus, assets, liabilities, 2013. We encourage readers to consider the information presented here in revenues and expenses are reported in these statements for some items conjunction with additional information that we have furnished in our letter that will only result in cash flows in future fiscal periods (e.g. uncollected of transmittal, which can be found in the introductory section of this report, revenues and accrued but unpaid interest expense).
and the City's basic financial statements in the financial section of this report. AJI amounts, unless otherwise indicated, are expressed in thousands The Statement of Net Position presents information on all of the City's of dollars.
assets, deferred outflows of resources, liabilities and deferred inflows of resources, including capital assets and long-term liabilities, with the OVERVIEW OF THE BASIC FINANCIAL STATEMENTS difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial This discussion and analysis are intended to serve as an introduction to the position of the City as a whole is improving or deteriorating.
City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial The Statement of Activities presents information showing how the City's net statements, 2) fund financial statements, and 3) notes to financial position changed during the most recent fiscal year. Functional activities statements. This report also contains other supplementary information in are highlighted in this statement, whereby direct and indirect functional addition to the basic financial statements themselves. costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support, COMPONENTS OF THE ANNUAL FINANCIAL REPORT The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are Intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City Include general government, Police, Fire, Community Development, Planning, Public Works, Community Services, Public Utilities (street lighting),
Convention, Sports and Entertainment (Visitor and Convention Bureau and the Honda Center), and interest on related long-term debt. The business-
- N type activities of the City include the electric, water and sanitation utilities,
------------ I golf courses, and convention, sports and entertainment venues (Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Notes to the j Grove of Anaheim) operations.
Financial Statements The government-wide financial statements include not only the City itself, but also the Anaheim Housing Authority, Community Center Authority, Anaheim Public Improvement Corporation, and Anaheim Public Financing Ci
-JU I II r. y Af~fln
' F_ Detail Authority. Although these entities are legally separate, they function for all practical purposes as a part of the City, and therefore have been included 13
CITY OF ANAHEIM as blended component units as an integral part of the primary The City adopts an annually appropriated budget for all governmental government. and proprietary funds. Budgetary comparison statements for the General Fund and the major special revenue fund (Housing Authority) are required The government-wide financial statements can be found on pages 25-27 to be presented and are included in the basic financial statements on of this report. ,pages 33-34 of this report. Additionally, budgetary schedules for the other governmental funds have been provided to demonstrate compliance with Fund financial statements. The fund financial statements focus on current the budget and can be found as part of other supplementary schedules available resources and are organized and operated on the basis of funds, on pages 93-97, 100-101, and 104-105 of this report.
each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts, established for the purpose of carrying on The governmental funds financial statements can be found on pages 29-specific activities or attaining certain objectives in accordance with 32 of this report.
special regulations, restrictions or limitations. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, Proprietary funds. The City maintains two different types of proprietary and fiduciary funds. funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Governmental funds. Governmental funds are used to account for City uses its enterprise funds to account for its electric, water and sanitation essentially the same functions reported as governmental activities in the utilities, golf courses, and convention, sports and entertainment venues government-wide financial statements. However, unlike the government- operations. Internal service funds are an accounting device used to wide financial statements, the governmental funds financial statements accumulate and allocate costs internally among the City's various utilize the modified accrual basis of accounting, which focuses on near- functions. The City uses internal service funds to account for its general term inflow and outflow of spendable resources, as well as on balances of benefits and insurance, motorized equipment, information services, and spendable resources available at the end of the fiscal year. Such municipal facilities maintenance functions. Because these services information may be useful in evaluating a government's near-term predominantly benefit governmental rather than business-type functions, financial requirements. they have been included with governmental activities in the government-wide financial statements.
Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the Proprietary funds provide the same type of information as the government-information presented for the governmental funds with similar information wide financial statements, only in more detail. The proprietary funds presented for governmental activities in the government-wide financial financial statements provide separate information for all of the enterprise statements. By doing so, readers may better understand the long-term funds, which are considered to be major funds of the City. Conversely, all impact of the government's near-term financing decisions. Both the of the internal service funds are combined into a single, aggregated governmental funds Balance Sheet and the governmental funds presentation in the proprietary funds financial statements. Individual fund Statement of Revenues, Expenditures and Changes in Fund Balances data for the internal service funds is provided in the form of combining provide a reconciliation to facilitate this comparison between statements elsewhere in this report.
governmental funds and governmental activities.
The proprietary funds financial statements can be found on pages 35-39 of The City maintains 18 individual governmental funds. Information is this report.
presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fiduciary funds. Fiduciary funds are used to account for resources held for Fund Balances for the General Fund and Housing Authority Special the benefit of parties outside the government. Fiduciary funds are not Revenue Fund, both of which are considered to be major funds. Data for reflected in the government-wide financial statements because the the other 16 governmental funds are combined into a single, aggregated resources of those funds are not available to support the City's own presentation. Individual fund data for each of these nonmajor programs.
governmental funds is provided in the form of supplementary combining statements on pages 87-92, 98-99, and 102-103 of this report. The City maintains three different types of fiduciary funds. The Investment Trust Fund is used to account for the external portion of the City's 14
CITY OF ANAHEIM investment pool; the Private-Purpose Trust Fund is used to account for the assets and liabilities held in trust for the Successor Agency to the former " The City's net position increased as a result of the current fiscal Redevelopment Agency (Successor Agency); the Agency Fund is used to year's operations. The net position of the City's governmental account for monies collected and disbursed in a custodial capacity for the activities increased $82,761 (8%); business-type activities net Mello-Roos districts in the City. position increased $26,186 (3%).
The fiduciary fund financial statements can be found on page 41-43 of this " At the close of the current fiscal year, the City's governmental report. funds reported a combined fund balance of $249,292, an increase of $47,214 in comparison with the prior fiscal year.
Notes to the financial statements. The notes provide additional information Approximately 6% of this amount ($15,689) is available for that is essential to a full understanding of the data provided in the spending at the City's discretion.
government-wide and fund financial statements. The notes to the financial statements can be found on pages 45-83 of this report.
- At the end of the current fiscal year, spendable, unrestricted and unassigned fund balance for the General Fund was Other supplementary Information. In addition to the basic financial $26,920 or 11% of total General Fund expenditures.
statements and accompanying notes, this report also presents combining individual fund statements referred to earlier in connection with nonmajor
- The City's total capital assets increased by $108,705 (4%).
governmental funds and internal service funds. Also included are the Capital assets in the City's governmental activities increased budgetary comparison Schedules of Revenues, Expenditures and Changes by $77,020 (6%) and business-type activities capital assets in Fund Balances for all nonmajor special revenue funds, all debt service increased by $31,685 (2%) during the current fiscal year.
funds, and all capital projects funds. These statements and schedules can be found on pages87-110 of this report.
- The City's total long-term liabilities increased by $42,995 (2%)
during the current fiscal year; of this amount, long-term liabilities in the City's governmental activities increased by
$27,531 (4%), and business-type activities increased by $15,464 FINANCIAL HIGHLIGHTS (Amounts in thousands) (I%).
- The City's total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the end of the current fiscal year by $2,101,492. Of this amount,
$151,424 represents unrestricted net position, which may be used to meet the City's ongoing obligations to citizens and creditors.
" The City's governmental activities represent $1,121,819 (53%)
and the business-type activities account for $979,673 (47%) of the City's total net position.
15
CITY OF ANAHEIM GOVERNMENT-WIDE FINANCIAL ANALYSIS NET POSITION JUNE 30, 2013 AND 2012 Governmental Business-type Total Activities Activities Government 2012 2012 2012 2013 As restated 2013 As restated 2013 As restated Current and other assets $ 522,708 $ 486,199 $ 633,328 $ 610,270 $ 1,156,036 $ 1,096,469 Capital assets, net 1,392,527 1,315,507 1,575,358 1,543,673 2,967,885 2,859,180 Total assets 1,915,235 1,801,706 2,208,686 2,153,943 4,123,921 3,955,649 Deferred outflows of resources 2,377 2,590 5,932 7,590 8,309 10,180 Total assets and deferred outflows of resources 1,917,612 1,804,296 2,214,618 2,161,533 4,132,230 3,965,829 Other liabilities 55,797 52,773 62,306 59,466 118,103 112,239 Long-term liabilities 739,996 712,465 1,098,642 1,083,178 1,838,638 1,795,643 Total liabilities 795,793 765,238 1,160,948 1,142,644 1,956,741 1,907,882 Deferred inflows of resources 73,997 65,402 73,997 65,402 Total liabilities and deferred inflows of resources 795,793 765,238 1,234,945 1,208,046 2,030,738 1.973,284 Net position:
Net investment in capital assets 894,625 831,430 787,459 780,093 1,682,084 1,611,523 Restricted 196,853 190,868 71,131 61,235 267,984 252.103 Unrestricted 30,341 16,760 121,083 112,159 151,424 128,919 Total net position $ 1,121,819 $ 1,039,058 $ 979,673 $ 953,487 $ 2,101,492 $ 1,992,545 At the end of fiscal year 2013, the City's net position totaled $2,101,492. The resources that are subject to external restrictions on how they may be largest portion of the City's net position $1,682,084 (80%) reflects its used. The increase in restricted net position of $15,881 is primarily due to investment in capital assets (e.g. land, buildings, utility plant, machinery, unspent restricted resources of $12,340 for capital projects primarily related equipment, and infrastructure), net of any related outstanding debt that to streets, roads and transportation improvements.
was used to acquire those assets. The City uses these assets to provide services to citizens; consequently, these assets are not available for future The remaining balance of $151,424 (7%) is unrestricted net position that spending. Although the City's investment in capital assets is reported net of may be used to meet the City's ongoing obligations to citizens and related debt, it should be noted that the resources needed to repay this creditors. The City's total unrestricted net position Increased by $22,505, of debt must be provided from other sources, since the capital assets which governmental activities increased by $13,581 and business-type themselves cannot be used to liquidate these liabilities. activities increased by $8,924 as a result of the current fiscal year's operations.
An additional portion of the City's net position $267,984 (13%) represents 16
CITY OF ANAHEIM CHANGE INNET POSITION YEAR ENDED JUNE 30, 2013 AND 2012 Governmental Business-type Total Activities Activities Government 2013 2012 2013 2012 2013 2012 REVENUES Program revenues:
Charges for services $ 64,138 $ 57,962 $ 604,388 $ 546,500 $ 668,526 604,462 Operating grants and contributions 112,507 108,620 952 1,101 113,459 109,721 Capital grants and contributions 71,472 44,184 6,698 8,954 78,170 53,138 General revenues:
Taxes:
Property taxes 64,311 87,574 64,311 87,574 Sales and use taxes 65,445 59,654 65,445 59,654 Transient occupancy taxes 102,936 90,376 102,936 90,376 Motor vehicle license fees 331 331 Other taxes 7,756 7,272 7,756 7,272 Unrestricted investment earnings 1,094 3,598 3,323 10,216 4,417 13,814 Other 1,857 873 1,857 873 Total revenues 491,847 460,113 615,361 566,771 1,107,208 1,026,884 EXPENSES Program activities:
Governmental activities:
General government 13,275 11,617 13,275 11,617 Police 124,556 117,840 124,556 117,840 Fire 58,508 58,027 58,508 58,027 Community Development 82,769 95,683 82,769 95,683 Planning 16,917 15,648 16,917 15,648 Public Works 44,740 41,228 44,740 41,228 Community Services 28,925 28,282 28,925 28,282 Public Utilities 2,405 2,315 2,405 2,315 Convention, Sports and Entertainment 13,935 13,584 13,935 13,584 Interest on long-term debt 35,880 42,910 35.880 42,910 Business-type activities:
Electric Utility 417,008 386,698 417,008 386,698 Water Utility 57,056 58,369 57,056 58,369 Sanitation Utility 52,813 55,957 52,813 55,957 Golf Courses 4,473 4,114 4,473 4,114 Convention, Sports and Entertainment Venues 45,001 45,484 45,001 45,484 Total expenses 421,910 427,134 576,351 550,622 998,261 977,756 Excess before transfers and extraordinary gain 69,937 32,979 39,010 16,149 108,947 49,128 Transfers in (out) 12,824 12,571 (12,824) (12,571)
Extraordinary gain 102,882 102,882 Increase in net position 82,761 148,432 26,186 3,578 108,947 152,010 Effect of implementation GASB Statement No. 65 (1,300) (6,337) (7,637)
Net position at beginning of year, as previously reported 1,040,358 891,926 959,824 956,246 2,000,182 1,848,172 Net position at end of year $ 1,121,819 $ 1,040,358 $ 979,673 $ 959.824 $ 2,101,492 $ 2,000,182 17
CITY OF ANAHEIM
" Taxes decreased $4,097 (2%) mainly due to a decrease in REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES property taxes of $23,263 (27%) as a result of the dissolution of the former Redevelopment Agency pursuant to the enactment of the California Assembly Bill AB IX 26 in February 2012. This is partially offset by increases in transient occupancy tax (TOT) and sales and use tax. TOT increased $12,560 (14%)
due to a revitalized tourism industry and the opening of Disney's Cars Land. Sales and use tax increased $5,791 (10%) as a result in increased new car sales and a general improvement across most business sectors.
- Charges for services increased $6,176 (11%) primarily due to increases in permits and fees of $3,097, with increased activities in construction and inspections, and a gain of $2,389 from the sale of low-and-moderate income housing land.
Operating grants and contributions " Operating grants increased $3,887 (4%) mainly due to an I
Property taxes I
Capital grants 23% increase of $2,378 for Urban Area Security Initiative (UASI) 13% and contributions grant reimbursements, $2,168 in the Narcotic Asset Forfeitures 15% as a result of money and property seizures in drug-related incidents, and $2,318 in U.S. Department of Housing Urban Development (HUD) Section 8 Housing Choice Voucher (Section 8) rental assistance. These increases were partially Governmental activities. The most significant revenues of the offset by a decrease of $1,326 in Community Development governmental activities are general taxes (49%), which include transient Block Grant (CDBG) due to a reduction in the funding occupancy taxes (21%), property taxes (13%), sales and use taxes (13%),
allocation, and a $1,645 decrease in gas tax shared revenues and other taxes (2%). Program revenues are 51% of the total revenues of as the State Controller revised the gas tax allocation formulas the governmental activities, which include operating grants and during fiscal year 2013.
contributions (23%), capital grants and contributions (15%), and charges for services (13%).
" Capital grants and contributions increased by $27,288 (62%)
primarily due to grant reimbursements for the Anaheim Public safety (Police and Fire) expenses are the most significant (43%) of all Regional Transportation Intermodal Center (ARTIC) as the governmental activities expenses, followed by Community Development project progressed to the construction phase.
(20%), Public Works (11%), interest on long-term debt (9%), Community Services (7%) and various other programs (10%). Included in these amounts " Unrestricted investment earnings decreased by $2,504 (70%)
is depreciation expense, which is 8% of the total expenses for due to the investment portfolio market value being less than governmental activities. the prior year, which resulted in the recognition of an unrealized investment loss in the current fiscal year.
Governmental activities revenues increased $31,734 (7%) in the current fiscal year due to the following: Governmental activities net transfers in increased $253 (2%). There were no significant or unusual changes.
18
CITY OF ANAHEIM EXPENSES AND PROGRAM REVENUES- REVENUES BY SOURCE-BUSINESS-TYPE ACTIVITIES GOVERNMENTAL ACTIVITIES
$140 Capital grants
$120 ulIu Unrestricted contributio ,ns investment
$100 1%
Operating earnings 1%
$80 grants and _
C contributions
<1%
$60
$40
$20
$0 Charges for 6" services 98%
Business-type activities. Business-type activities increased the City's net position by $26,186. Key elements of this change are as follows:
a Program revenues u Expenses Charges for services of $604,388 increased $57,888 (11%). The increase in charges for services was primarily due to an increase from the Electric Utility of $54,027 (14%) and Water Utility of $3,037 (5%).
Governmental activities expenses decreased $5,224 (1%) in the current fiscal year due to the following:
- The increase in the Electric Utility charges for services is partly due to
" The decreases of $12,914 (14%) in Community Development and increased retail sales revenue of $15,390 (5%). The City Council approved a 5% base rate increase effective December 11, 2011 in interest on long-term debt of $7,030 (16%) were mainly due to the dissolution of the former Redevelopment Agency in the prior fiscal response to sustained increased power costs. This rate increase was in year. effect the entire fiscal year of 2013 versus only half of the previous fiscal year. Additionally, retail sales volume increased by 1.5%. Wholesale
- These decreases were partially offset by an increase of $6,716 (6%) in revenues increased by $6,816 (35%) mainly due to higher prices and Police that was primarily due to 6 new positions, increased salary and additional surplus power available from the increasing renewable benefit costs and UASI grant expenditures. There were other increases resources purchased during this fiscal year. Transmission revenues throughout the governmental activities but most notably additional increased $7,931 (23%) mainly due to the increased statewide depreciation for new infrastructure assets ($405), additional outside transmission demand with the shutdown of the San Onofre Nuclear legal costs ($994), and expanded graffiti abatement efforts ($703). Generating Station (SONGS) and rates set by the California Independent System Operator (CAISO). Finally, Rate Stabilization Account (RSA) revenues are recognized to meet debt service coverage ratios to maintain bond ratings increased by $17,000 (71%)
due to increased costs of operations. Information relating to the RSA can be found in note 1 of the notes to the financial statement, 19
CITY OF ANAHEIM The increase in Water Utility charges for services is mainly due to an FINANCIAL ANALYSIS OF THE CITY'S FUNDS increase of $3,104 (5%) from the sale of water because of increased customer demands. The Water Utility sold 62,804 acre feet of water Governmental funds. The focus of the City's governmental funds is to during fiscal year 2013 as compared to 60,371 acre feet in fiscal year provide information on near-term inflows, outflows, and balances of 2012. spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve EXPENSES AND PROGRAM REVENUES - as a useful measure of a government's net resources available for
_ _1AtNfS&-TYPE_ATIVITIO __ spending at the end of the fiscal year.
$500
$450 At the end of the current fiscal year, the City's governmental funds reported total ending fund balances of $249,292, an increase of $47,214 in
$400 comparison with the prior fiscal year. Of the total fund balance of
$350 $249,292, restricted fund balance totaled $198,870 (80%) and indicates the
$300 use of resources are constrained by external parties, resource providers, 0
R2 $250 constitutions or enabling legislations. Unassigned fund balance totaled X! $15,689 (6%) and is available for spending at the City's discretion, The
$200 remaining fund balance is $34,733 (14%), of which $7,188 is not in spendable form, $788 was committed for specific purposes, and $26,757
$150 was assigned for particular purposes.
$100 Governmental revenues totaled $496,215 while expenditures were
$50
$494,578.
m
$0 Electric Utility Water Utility Sanitation Golf Courses Convention, The General Fund is the general operating fund of the City. At June 30, Sports & 2013, the General Fund reported a total ending fund balance of $38,884 Entertainment Venues and consisted of the following:
w Program revenues wExpenses * $2,531 was nonspendable for inventory, prepaid and other assets and a long-term interfund receivable Total expenses of $576,351 Increased $25,729 (5%). The increase is primarily * $1,766 was restricted for grant purposes due to increases of $30,310 (8%) in the Electric Utility that were partially 0 $788 was committed for loan assistance to the Successor Agency offset by a decrease of $3,144 (6%) in the Sanitation Utility. * $6,879 was assigned for encumbrances, subsequent year one-time budgeted service enhancements, and claims and judgments
" The increase In the Electric Utility expenses is primarily due to an increase * $26,920 was unassigned In power purchases of $34,400. The renewable power purchase increased by $17,751 to reach the resource mix of 25% by 2016; market General Fund total revenues increased $26,738 (11%). Total taxes power purchases increased by $10,810 and Canyon power costs increased by $22,802 (11%) primarily due to the improvement in the overall increased by $5,195 due to outages at the Magnolia and San Juan economy. Taxes are the largest revenue sources of the General Fund and plants. they accounted for $236,388 or 85% of the total General Fund revenues.
During fiscal year 2013, transient occupancy taxes (TOT) increased $12,560
- The decrease in Sanitation Utility expenses is primarily due to a one- (14%), property taxes increased by $5,361 (9%), sales and use taxes time loss of $4,284 last fiscal year for the disposal of capital assets. The increased $4,206 (7%) and other taxes increased by $677 (11%). Licenses, Sanitation Utility transferred ownership of 24 City-owned automated fees, and permits increased $1,959 (12%); other revenues increased by trash collection vehicles to Republic Services, the City's solid waste $1,906 (229%) as the City received a one-time property tax administration collection franchisee, for one dollar in accordance with the Franchise fee reimbursement of $1,916 from the County of Orange.
Agreement. 20
CITY OF ANAHEIM General Fund expenditures increased by $11,174 (5%) primarily due to more detail.
increases in the Police department of $4,365 (4%), Planning of $1,622 (13%), City Attorney of $1,554 (32%), Community Services of $1,277 (6%), The Electric Utility net position increased $19,002 (6%) in the current fiscal and Community Development of $1,583 (602%). The increase in year. The most significant factors of the change in fund net position are Community Development was because the City provided a loan of $1,056 discussed in the government-wide financial analysis of business-type to assist the Successor Agency for project costs while it sought activities.
reimbursement from the State. The other most significant factors of the increases for these departments are discussed in the government-wide The Water Utility fund net position increased $2,536 (1%) in the current fiscal financial analysis of the governmental-activities. year. The most significant factors of the change in fund net position ore discussed in the government-wide financial analysis of business-type The Housing Authority Fund revenues increased by $5,140 (7%) primarily activities.
due to an increase of $2,318 in HUD funding for Section 8 rental assistance and an increase in sales of land held for resale of $2,389. The Housing The Sanitation fund net position increased $3,623 (3%) in the current fiscal Authority expenditures decreased by $1,051 (1%) due to land acquisition year. There were no significant or unusual changes.
for housing projects of $1,109 in the prior fiscal year.
The Golf Courses fund net position increased $44 (less than 1%) in the Total nonmajor governmental funds revenues increased by $13,521 (11 %). current fiscal year. There were no significant or unusual changes.
Intergovernmental revenues increased by $40,368 as grant reimbursable construction costs were received and made available during the current The Convention, Sports and Entertainment Venues fund net position fiscal year; these projects included the Gene Autry Way and Katella increased $2,505 (less than 1%) in the current fiscal year. There were no Avenue. Licenses, fees and permits increased by $3,270 due to more new significant or unusual changes.
construction activities in the improved economy. These increases were partially offset by decreases of $31,042 as a result of the dissolution of the GENERAL FUND BUDGETARY HIGHLIGHTS former Redevelopment Agency in fiscal year 2012.
During the year, the original budget was amended to increase Total nonmajor governmental funds other financing sources increased by appropriations by $2,976 (1%). The increase in appropriations was primarily
$64,966 (655%). Transfers in increased by $6,979, due to the increase in the result of the carryover of prior year appropriations and amendments Lease Payment Measurement Revenues (LPMR) set-aside for the Resort amounting to $974 and the reallocation of appropriations from other funds debt service (see note 8 for more information regarding LPMR). of $2,002. These amendments were to be funded from savings in other Additionally, the nonmajor governmental funds received loan proceeds programs of the General Fund during the year.
$31,500 for the acquisition of a real estate parcel for the ARTIC project.
Finally, prior year transfers of $34,629 were one-time and related to the General Fund revenues of $279,967 were greater than budgeted revenues dissolved Redevelopment Agency. of $266,122 by $13,845 (5%), primarily due to stronger than anticipated performance of transient occupancy taxes, property taxes and other Total nonmajor governmental funds expenditures increased by $31,408 various revenue sources as the economy continued to improve.
(21%) primarily due to increased capital outlay of $44,342 (82%), which was mainly attributable to ARTIC, and partially offset by decreases in General Fund expenditures were less than budgeted. Of the total Community Development expenditures of $10,837 (57%) due to the former appropriations of $241,069, approximately 1%, or $2,915, went unspent. This Redevelopment Agency dissolution. was primarily due to labor savings as a result of employee turnover and the time between an employee leaving and the recruitment of a new Proprietary funds. The City's proprietary funds provide the same type of employee.
information found in the government-wide financial statements, but in 21
CITY OF ANAHEIM CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS (net of accumulated depreciation)
JUNE 30, 2013 AND 2012 Governmental Business-type Total Activities Activities Government 2013 2012 2013 2012 2013 2012 Land $ 648,420 $ 606,611 $ 58,410 $ 58,410 $ 706,830 $ 665,021 Construction in Progress 138,749 89,486 84,936 80.795 223,685 170,281 Building, structures, and improvements 160,157 163,024 401,430 386,547 561,587 549,571 Utility plant 1,021,584 1,008,373 1,021,584 1,008,373 Machinery and equipment 29,140 29,647 8,998 9,548 38,138 39,195 Infrastructure 416,061 426,739 416,061 426,739 Total $ 1,392,527 $ 1,315,507 $ 1,575,358 $ 1,543,673 $ 2,967,885 $ 2,859,180 Capital assets. The City's investment in capital assets for its governmental
- Acquisitions of various vehicles and equipment totaling $6,441.
and business-type activities at June 30, 2013 amounted to $2,967,885 (net of accumulated depreciation). This investment in capital assets included
- Completion of $16,527 of construction work in progress that includes land, construction in progress, buildings, structures and improvements, the Anaheim Canyon Station Pedestrian Connection ($4,544), streets utility plant, machinery and equipment, and infrastructure. The total ($4,157), right-of-way ($6,116) and various other projects ($1,710).
increase over the prior fiscal year was 4% ($108,705), of which governmental activities increased 6% ($77,020) and business-type activities The increase in business-type activities is primarily due to increases in the increased 2% ($31,685). following:
The increase of capital assets in governmental activities was primarily due " The Electric Utility increase of $5,977 (less than 1%) was mainly due to to capital asset additions of $111,629 offset by current year depreciation additions of $43,741 to construction in progress for the expansion or expense of $31,737, capital assets retirements of $1,680 and transfer to improvement of existing substations, transmission and distribution business-type activities of $1,192. Major capital asset projects during the systems, the replacement of aging overhead electrical lines with state-current fiscal year include the following: of-the-art underground facilities, and upgrading equipment for the San Juan plant. This was partially offset by the current year additions to
- Additions of $67,000 for construction work in progress which includes accumulated depreciation of $39,969.
construction of the Anaheim Regional Transportation Intermodal Center (ARTIC), the Anaheim Fixed Guideway project, Gene Autry " The Water Utility increase of $15,515 (5%) was primarily due to additions Way, Brookhurst Street, and various other public infrastructure of $24,576 to construction in progress for ongoing expansion and construction. refurbishment of water transmission and distribution infrastructure, pumping plant and source of water supply, and was partially offset by the
" Land acquisition for the ARTIC project of $32,500 and land right-of-way current year additions to accumulated depreciation of $9,742.
acquisitions for street-widening and other capital projects totaling
$3,31 6.
- The Sanitation Utility increase of $5,418 (6%) includes sanitary sewer 22
CITY OF ANAHEIM improvements of $7,724 and was partially offset by current year additions Additionally, the business-type activities completed $86,800 In to accumulated depreciation of $2,297, construction in progress, which includes Improvements to electric and water utility facilities, sanitary sewer Improvements and the Convention Convention, Sports and Entertainment increase of $5,156 (2%) primarily Center transit plaza.
included capital asset additions of $14,900 for the construction of the Grand Plaza and various capital projects, and was partially offset by Additional information on the City's capital assets can be found in note 6 current year additions to accumulated depreciation of $13,112. of the notes to the financial statements, on pages 61-62 of this report.
LONG-TERM LIABILITIES JUNE 30, 2013 AND 2012 Governmental Business-type Total Activities Activities Government 2013 2012 2013 2012 2013 2012 General obligation bonds $ 2.605 $ 3,185 $ 2,605 $ 3,185 Revenue bonds 613,481 613,259 $ 863,987 $ 889,581 1,477,468 1,502,840 Certificates of participation 10,020 11,085 38,000 38,000 48,020 49,085 Capital lease obligations 1,369 1,694 1,369 1,694 Notes and loans payable 54,877 25,546 65,322 24,652 120,199 50,198 Self-insurance 39,422 39,343 39,422 39,343 Compensated absences 18,222 18,353 18,222 18,353 Decommissioning provision 131,333 130,945 131,333 130,945 Total $ 739,996 $ 712,465 $ 1,098,642 $ 1,083,178 $ 1,838,638 $ 1,795,643 Long-term llabIlltIes. The City's outstanding long-term liabilities, including The City's business-type activities outstanding long-term liabilities increased bonds, certificates of participation, capital leases, notes and loans $15,464 (1%). The increase is due to $46,600 note payable draw from a payable, self-insurance, compensated absences, and the provision for Revolving Loan Agreement, of which $44,000 will be used for a planned decommissioning costs totaled $1,838,638 at June 30, 2013. Of this total, early retirement of the 2002-B Electric Revenue Bonds in July 2013. The
$739,996 (40%) was In governmental activities and $1,098,642 (60%) was in increase was partially offset by current year principal repayments of business-type activities, $38,591.
The City's governmental activities outstanding long-term liabilities Additional information on the City's long-term liabilities can be found in increased $27,531 (4%) in fiscal year 2013. The increase is primarily due to notes 7 and 8 of the notes to the financial statements, on pages 62-74 the issuance of long term loan payable of $31,500 for the purchase of the of this report.
ARTIC land, current year increase of revenue bond accretion of $15,233, and was partially offset by principal repayments of $20,060.
23
CITY OF ANAHEIM ECONOMIC FACTORS
- There remains a focus on public pensions and their sustainability, Many California Senate Bill IX 2 signed into law in April 2011 mandated that assumptions are used to estimate the ultimate liability of pensions and all California utilities are required to reach 25% renewable power in the contributions that will be required to meet those obligations. One their power portfolios by 2016, and 33% by 2020. The higher renewable of the most significant factors used in determining the liability and the power costs will raise future power supply costs in fiscal year 2014.
funding requirements is the rate of return that investments will yield prior to making payments, known as the discount rate. The City's pension plans currently utilize a discount rate of 7.5%, which is used in REQUESTS FOR INFORMATION determining the unfunded pension liability and funding requirements.
If it is determined in the future that an even lesser rate of return is more This financial report is designed to provide a general overview of the City's appropriate, there will be a significant increase in the unfunded liability finances for all those with an interest in the government's finances.
and the contributions required to meet those obligations. The Questions concerning any of the information provided in this report or Governmental Accounting Standards Board also has issued new requests for additional information should be addressed to the Office of standards related to the accounting and reporting for pensions that the Finance Director, City of Anaheim, 200 South Anaheim Boulevard, Suite are required to be implemented for the fiscal year beginning July 1, 643, Anaheim, California, 92805.
2014. The City is currently evaluating the potential impacts to the financial statements from implementation of these new standards.
Additional information about the City's retirement plans can be found in note 10 of the notes to the financial statements on pages 75-78 of this report, as well as multi-year trend information as part of the required supplementary information on page 85.
0 Recently, the State of California enacted pension legislation that went Into effect in January 2013 and applies mainly to new public employees.
Some of the major changes include mandatory cost sharing by employees, reducing the overall benefit level (e.g. percentage of pay), Increasing the retirement age, and placing a cap on the salary used to determine retirement benefits. The impacts to the City for these changes for future employees has yet to be determined.
0 For the 2014 fiscal year, the City appropriated $263,504 in estimated available resources of $291,457 for General Fund spending. This leaves approximately $27,953 in estimated available reserves, which is 11% of General Fund appropriations. The City's long-standing policy is to maintain General Fund reserves of at least 7% to 10% of annual appropriations,
- The City annually reviews all of its fees as part of the budget adoption process. Developer, construction, and other fees applicable to residents and development doing business in the City are adjusted in June of each year, generally by the average of the Consumer Price Index (CPI). CPI for 12 months was 2.0 in January 2013. This is consistent with the City's policy of recovering costs without placing an undue financial burden on existing tax and rate payers.
24
Basic Financial Statements
CITY OF ANAHEIM Statement of Net Position June 30, 2013 (inthousands)
Governmental Business.type Activities Activities Total ASSETS Cash and cash equivalents $ 69,097 $ 45,521 $ 114,618 Investments 143,241 90,294 233,535 Accounts receivable, net 20,705 59,618 80,323 Accrued interest receivable 486 1,646 2,132 Internal balances, net 17,357 (17,357)
Due from other governments 56,036 56,036 Notes receivable, net 73,258 73,258 Inventories 988 10,288 11,276 Land held for resale, net 16,973 16,973 Prepaid and other assets 5,625 67,643 73,268 Restricted cash and cash equivalents 43,897 121,694 165,591 Restricted investments 38,911 246,007 284,918 Unamortized prepaid bond insurance 1,608 1,345 2,953 Bond payment receivable 6,545 6,545 Pipeline receivable 84 84 Net other post-employment benefits (OPEB) asset 11,017 11,017 Due from the Successor Agency 23,509 23,509 Capital assets, net:
Nondepreciable 787,169 143,346 930,515 Depreciable 605,358 1,432,012 2,037,370 Total assets 1,915,235 2,208,686 4,123,921 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 2,377 5,932 8,309 Total deferred outflows of resources 2,377 5,932 8,309 LIABILITIES Accounts payable 29,653 42,784 72,437 Wages payable 5,929 1,105 7,034 Due to other governments 1,163 1,163 Interest payable 7,177 10,981 18,158 Arbitrage rebate liability 167 167 Deposits 7,527 7,026 14,553 Unearned revenues 4,348 243 4,591 Long-term liabilities:
Due within one year 45,231 94,406 139,637 Due In more than one year 694,765 1,004,236 1,699,001 Total liabilities 795,793 I,160,948 1,956,741 DEFERRED INFLOWS OF RESOURCES 73,997 73,997 Regulatory credits Total deferred Inflows of resources 73997 73,997 NET POSITION Net Investment In capital assets 894,625 787,459 1,682,084 Restricted for:
Debt service 979 20,571 21,550 Capital projects 60,554 39,967 100,521 Community development 80,127 80,127 Streets, roads and transportation improvement projects 43,321 43,321 Other purposes 11,872 10,593 22,465 Unrestricted 30,341 121,083 151,424 Total net position $ 1,121,819 $ 979,673 $ 2,101.492 25 e accompanying notes are an intergral part of these financial statements.
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CITY OF ANAHEIM Statement of Activities Year Ended June 30, 2013 (in thousands)
Net (Expense) Revenue and Program Revenues Changes In Net Position Indirect Operating Capital Expenses Charges for Grants and Grants and Governmental Business-type Expenses Allocation Services Contributions Contributions Activities Activities Total Functions/Programs Governmental activities:
General government $ 25,076 $ (11,801) $ 1,670 $ 734 $ (10,871) $ (10,871)
Police 121,006 3,550 9,859 14,957 (99,740) (99,740)
Fire 57,692 816 9,912 1,102 (47,494) (47,494)
Community Development 82,461 308 9,151 79,494 $ 135 6,011 6,011 Planning 16,106 811 6,404 1.945 (8,568) (8,568)
Public Works 44,595 145 14,012 13,430 60,106 42,808 42,808 Community Services 28,490 435 3,556 845 2,553 (21,971) (21,971)
Public Utilities 2,405 (2,405) (2,405)
Convention, Sports and Entertainment 13,754 181 9,574 8,678 4,317 4,317 Interest on long-term debt 35,880 (35,880) (35,880)
Total governmental activities 427,465 (5,555 64,138 112,507 71,472 (173,793) (173,793)
Business-type activities:
Electric Utility 413,938 3,070 451,958 3,782 $ 38,732 38,732 Water Utility 56,087 969 60,785 276 754 4,759 4,759 Sanitation Utility 52,491 322 57,230 242 906 5,565 5,565 Golf Courses 4,296 177 4,759 286 286 Convention, Sports and Entertainment Venues 43,984 1,017 29,656 434 1,256 (13,6551 (13,655)
Total business-type activities 570,796 5,555 604,388 952 6,698 35,687 35,687 Total government $ 998,261 $ 668,526 $ 113,459 $ 78,170 (173,793) 35,687 (138,106)
General revenues:
Taxes:
Property taxes 64,311 64,311 Sales and use taxes 65,445 65.445 Transient occupancy taxes 102,936 102,936 Motor vehicle license fees 331 331 Other taxes 7,756 7,756 Unrestricted investment earnings 1,094 3,323 4,417 Other 1,857 1,857 Transfers 12,824 (12,824)
Total general revenues and transfers 256,554 (9,501) 247,053 Change in net position 82,761 26,186 108,947 Net position at beginning of year, as restated 1,039,058 953,487 1,992,545 Net position at end of year 1,121,819 $ 979,673 $ 2,101,492 The accompanying notes are an intergrol part of these financial statements. 27
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CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2013 (inthousands)
Nonmajor Total Housing Governmental Governmental General Authority Funds Funds ASSETS Cash and cash equivalents $ 9,576 $ 9,277 $ 25,205 $ 44,058 Investments 19,851 19,230 52,253 91,334 Accounts receivable, net 12,797 52 1,261 14,110 Accrued interest receivable 38 62 207 307 Notes receivable, net 47,296 25,921 73,217 Due from other funds 3,414 280 6,989 10,683 Due from other governments 18,248 18 37,770 56,036 Inventories 239 239 Land held for resale, net 16,973 16,973 Prepaid and other assets 154 38 4,619 4,811 Restricted cash and cash equivalents 2,285 41,612 43,897 Restricted investments 38,911 38,911 Due from the Successor Agency 1,056 8,176 14,277 23,509 Total assets $ 65,373 $ 103,687 249,025 $ 418,085 LIABILITIES Accounts payable $ 6,063 $ 504 $ 15,505 $ 22,072 Wages payable 2,745 57 183 2,985 Deposits 3,592 2,845 1,090 7,527 Due to other funds 342 7,717 8,059 Due to other governments 836 327 1,163 Unearned revenue 2,207 351 2,558 Total liabilities 15,785 4,084 24,495 44,364 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 9,648 36 18,019 27,703 Unavailable resources - long-term notes receivable 47,296 25,921 73,217 Unavailable resources - due from the Successor Agency 1,056 8,176 14,277 23,509 Total deferred inflows of resources I10.704 55.508 58.217 124.429 FUND BALANCES Nonspendable:
Interfund receivable 2,138 2,138 Inventory 239 239 Prepaid and other assets 154 38 4,619 4.811 Restricted:
Anaheim Resort maintenance and improvement 8,577 8,577 Capital projects 2,664 2,664 Debt service 61,625 61,625 Development impact projects 57,890 57,890 Grant purposes 1,766 4,839 6,605 Homebuyer assistance program 172 4,124 4,296 Low and moderate income housing 29,740 29,740 Rental assistance 2,322 2,322 Streets, roads and transportation improvement projects 25,151 25,151 Committed to loan assistance to the Successor Agency 788 788 Assigned:
Debt service 760 760 Capital projects 8,042 8,042 Housing projects 11,063 11,063 Claims and judgements 2,400 2,400 Other purposes 4,479 13 4,492 Unassigned 26,920 185299 Total fund balances 38,884 44.095 166 '313 Total liabilities, deferred inflows of resources, and fund balances 65,373 $ 103,687 249,025 29 The accompanying notes are an intergral part of these financial statements.
CITY OF ANAHEIM Reconciliation of the Governmental Funds Balance Sheet To the Statement of Net Position June 30, 2013 (inthousands)
Total fund balances - governmental funds $ 249,292 Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in the operation of governmental funds are not current financial resources and, therefore, are not reported in the funds. These assets consist of:
Land $ 648,420 Construction in progress 138,749 Buildings, structures and improvements 266,752 Machinery and equipment 49,685 Infrastructure 767,155 Accumulated depreciation (495,968)
Total capital assets, net 1,374,793 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 124,429 Unamortized prepaid bond insurance ($1,608) and deferred refunding bond charges ($2,377) are not current financial resources, and, therefore, are not reported in the funds. 3,985 Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 57,775 Compensated absences, not otherwise included in the internal service funds, are not due and payable In the current period and, therefore, are not reported in the funds. (295)
Long-term liabilities of governmental funds, including bonds ($616,086), certificates of participation ($10,020), notes and loans payable ($54,877), and accrued interest payable
($7,177) are not due and payable in the current period and, therefore, are not reported in the funds. (688,160)
Net position of governmental activities $1,121,819 The accompanying notes are an intergral part of these financial statements. 30
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2013 (inthousands)
Nonmajor Total Housing Governmental Governmental General Authority Funds Funds Revenues:
Property taxes $ 63,581 $ 730 $ 64,311 Sales and use taxes 62,793 62,793 Transient occupancy taxes 102,936 102,936 Other taxes 7,078 7,078 Licenses, fees and permits 17,941 $ 47 4,317 22,305 Intergovernmental revenues 3,205 72,620 110,193 186,018 Charges for services 13,775 22 17,086 30,883 Fines, forfeits and penalties 2,907 2,907 Use of money and property 2,513 3,922 1,623 8,058 Other 2,740 2,592 3,594 8,926 Total revenues 279,469 79,203 137,543 496,215 Expenditures:
Current:
City Council 456 456 City Administration 3,507 3,507 City Attorney 6,342 120 6,462 City Clerk 891 891 Human Resources 1,296 1,296 Finance 3,545 130 3,675 City Treasurer 1,983 1,983 Police 108,425 9,277 117,702 Fire 55,073 1,054 56,127 Community Development 1,846 76,376 8,060 86,282 Planning 14,350 1.435 15,785 Public Works 13,525 11,862 25,387 Community Services 23,730 1,538 25,268 Public Utilities 2,398 2,398 Convention, Sports and Entertainment 723 9,279 10,002 Capitol outlay 64 55 98,482 98,601 Debt service:
Principal retirement 18,948 18,948 Interest charges 19,808 19,808 Total expenditures 238,154 76,431 179,993 494,578 Excess (deficiency) of revenues over (under) expenditures 41,315 2,772 (42,450) 1,637 Other financing sources (uses): 28,469 Transfers in 151 44,850 73,470 Transfers out (57,920) (1,473) (59,393)
Issuance of loan payable 31,500 31,500 Total other financing sources (uses) (29,451 151 74,877 45,577 Net change in fund balances 11,864 2,923 32,427 47,214 Fund balances at beginning of year 27,020 41,172 133,886 202,078 Fund balances at end of year $ 38,884 $ 44,095 $ 166.313 $ 249,292 The accompanying notes are on intergral part of these financial statements. 31
CITY OF ANAHEIM Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds to the Statement of Activities Year Ended June 30, 2013 (inthousands)
Net change in fund balances - total governmental funds $ 47,214 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay
($98,601) exceeded depreciation ($27,258) in the current period. 71,343 Transfers of capital assets between governmental funds and proprietary funds do not require the use of financial resources and are not reported as transfers in the funds. (1.192)
The net effect of other miscellaneous transactions involving capilal assets (i.e., sales, trade-in, retirements and contributions) is to increase net position. 7,246 Revenues in the governmental funds provide current financial resources but are not reported as revenues in the Statement of Activities as they have previously been reported. (12,588)
Proceeds from long-term debt provide current financial resources to governmental funds, but the issuance of debt increases long-term liabilities in the Statement of Net Position. (31.500)
Payments of principal on long-term debt use current financial resources in the governmental funds but the repayment reduces long-term liabilities in the Statement of Net Position. 18,948 Certain 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. (12,013)
Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual funds. The net expense of the internal service funds is reported with governmental activities. (4,697)
Change in net position of governmental activities $ 82,761 The accompanying notes are an intergral part of these financial statements. 32
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual -- General Fund Year Ended June 30, 2013 (inthousands)
Original Final Variance Budgeted Budgeted Actual with Final Amounts Amounts Amounts Budget Revenues:
Property taxes $ 57,746 $ 60,569 $ 63,581 $ 3,012 Sales and use taxes 62,370 62,370 62,793 423 Transient occupancy taxes 96,027 96.027 102,936 6,909 Other taxes 6,512 6,512 7,078 566 Licenses, fees and permits 17,631 17,631 17,941 310 Intergovernmental revenues 2,093 2,189 3,205 1,016 Charges for services 13,351 13,351 13,775 424 Fines, forfeits and penalties 3,660 3,660 2,907 (753)
Use of money and property 2,371 2,371 2,513 142 Other 1,442 1,442 3,238 1,796 Total revenues 263,203 266,122 279,967 13,845 Expenditures:
City Council 535 535 456 (79)
City Administration 3,648 3,648 3,507 (141)
City Attorney 5,606 6,351 6,342 (9)
City Clerk 920 920 897 (23)
Human Resources 1,427 1,427 1,296 (131)
Finance 3,922 3,922 3,545 (377)
City Treasurer 2,418 2,440 2,004 (436)
Police 107,915 108,425 108,425 Fire 54,974 55,073 55,073 Community Development 400 1,846 1,846 Planning 15,166 15,170 14,350 (820)
Public Works 13,587 13,683 13,562 (121)
Community Services 24,366 24,379 23,730 (649)
Public Utilities 2,357 2,398 2,398 Convention, Sports and Entertainment 852 852 723 (129)
Total expenditures 238,093 241,069 238,154 (2,915)
Excess of revenues over expenditures 25,110 25.053 41,813 16,760 Other financing sources (uses):
Transfers in 28,723 30,286 28,749 (1,537)
Transfers out (53,679) (55,242) (57,920) (2,678)
Total other financing uses (24,956) (24,956) (29,171) (4,215)
Net change in fund balance 154 97 12,642 12,545 Fund balance at beginning of year 27,020 27,020 27,020 Fund balance at end of year $ 27,117 39,662 12,545 Adjustment to reconcile to GAAP:
Receipt of interfund receivable (778)
Ending fund balance - GAAP basis $ 38,884 33 The accompanying notes are an intergral part of these financial statements.
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual -- Housing Authority Year Ended June 30, 2013 (inthousands)
Original Final Variance Budgeted Budgeted Actual with Final Amounts Amounts Amounts Budget Revenues:
Licenses, fees and permits $ 31 $ 31 $ 47 $ 16 Intergovernmental revenues 75,750 75,750 72,620 (3,130)
Charges for services 22 22 Use of money and property 10,705 10,705 10,478 (227)
Other 1,347 1,347 2,592 1,245 Total revenues 87,833 87,833 85,759 (2,074)
Expenditures:
Community Development 78,945 79,005 76,276 (2,729)
Total expenditures 78,945 79,005 76,276 (2,729)
Excess of revenues over expenditures 8,888 8,828 9,483 655 Other financing sources (uses):
Transfers in 2,000 2,000 151 (1,849)
Transfers out (280) (280)
Total other financing sources 2,000 2,000 (129) (2,129)
Net change in fund balance 10,888 10,828 9,354 (1,474)
Fund balance at beginning of year 41,172 41,172 41,172 Fund balance at end of year $ 52,060 $ 52,000 50,526 $ (1,474)
Adjustments to reconcile to GAAP:
Proceeds on sale of land held for resale (9,799)
Gain on disposition of land held for resale 3,243 Decllne In value of land held for resale (155)
Disbursement of Interfund loan 280 Ending fund balance - GAAP basis $ 44,095 The accompanying notes are an intergral part of these financial statements. 34
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2013 (inthousands)
Business-type Activities - Enterprise Funds Governmental Convention, Activities -
Sports and Internal Electric Water Sanitation Golf Entertainment Service Utility Utility Utility Courses Venues Total Funds ASSETS Current assets:
Cash and cash equivalents $ 17,538 $ 5,073 $ 13,768 $ 272 $ 8,870 $ 45,521 $ 25,039 Investments 36,354 10,515 24,473 565 18,387 90,294 51,907 Restricted cash and cash equivalents 62,515 1,632 2,302 197 66,646 Restricted investments 17,939 1,312 19,251 Accounts receivable, net 43,220 7.422 7,312 117 1,547 59,618 4,448 Accrued interest receivable 1,218 75 111 2 240 1,646 179 Note receivable 41 Interfund receivable 117 Inventories 9,683 602 3 10,288 749 Bond payment receivable 2,040 2,040 Prepaid and other assets 9,950 1,154 20 11,124 814 Total current assets 198,417 27,785 47,966 956 31,304 306,428 83,294 Noncurrent assets:
Restricted cash and cash equivalents, less current portion 33,688 1,860 17,114 2,386 55,048 Restricted Investments, less current portion 209,461 7,175 10,120 226,756 Unamortized prepaid bond insurance 1,254 I 90 1,345 Bond payment receivable, less current portion 4,505 4,505 Pipeline receivable 84 84 Accounts receivable, less current portion 2,147 Interfund receivable, less current portion 49 Prepaid and other assets 56,519 56,519 Net other post-employment benefits (OPEB) asset 11,017 Capital assets:
Land 35,671 2,339 316 1,949 18,135 58,410 Buildings, structures and improvements 97.365 16,675 513,405 627,445 7,837 Utility plant 1,179,622 385,322 1,564,944 Machinery and equipment 4,767 1,074 25,506 31,347 57,265 Construction in progress 34,814 42,539 7,225 358 84,936 Total capital assets 1,250,107 430,200 109,673 19,698 557,404 2,367,082 65,102 Less accumulated depreciation (422,668) (120,692) (11,436) (10,544) (226,384) (791,724) (47,368)
Capital assets, net 827,439 309,508 98.237 9,154 331,020 1,575,358 17,734 Total noncurrent assets 1,128,361 318,628 115,441 9,154 348,031 1,919,615 30,947 Total assets 1,326,778 346,413 163407 10,110 379,335 2,226,043 114,241 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 3,352 168 2,412 5,932 Total deferred outflows of resources 3,352 168 2,412 5,93 35 The accompanying notes are an inlergral part of these financial statements.
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2013 (inthousands) (continued)
Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment Internal Utility Utility Utility Courses Venues Total Service Funds LIABILITIES Current liabilities (payable from current assets):
Accounts payable $ 23,031 $ 10,757 $ 3,605 $ 352 $ 861 $ 38,606 $ 7,581 Wages payable 391 183 84 8 298 964 2,944 Interest payable 728 728 Compensated absences 13,737 Long-term obligations 9.497 536 13,215 23,248 8,808 Unearned revenues 243 243 1,790 Deposits 4,091 750 600 3 1,582 7,026 Interfund payable 104 548 652 Total current liabilities (payable from current assets) 37,114 11,690 4,825 911 16,927 71,467 34,860 Current liabilities (payable from restricted assets):
Accounts payable 3,133 1,045 4,178 Wages payable 134 7 141 Interest payable 8,131 1,059 866 197 10,253 Arbitrage rebate liability 158 9 167 Long-term obligations 68,898 1,876 384 71,158 Total current liabilities (payable from restricted assets) 80,454 2,944 2,302 197 85,897 Total current liabilities 117,568 14,634 7,127 911 17,124 157,364 34,860 Noncurrent liabilities:
Interfund payable, less current portion 2,138 2,138 Long-term obligations, less current portion 663,275 91,820 44,575 73,233 872,903 36,173 Provision for decommissioning costs 131,333 131,333 Total noncurrent liabilities 794,608 91,820 44,575 2,138 73,233 1,006,374 36,173 Total liabilities 912,176 106,454 51,702 3,049 90,357 1,163,738 71,033 DEFERRED INFLOWS OF RESOURCES Regulatory credits 67,963 6,034 ________
________ _________73,997 Total deferred inflows of resources 67,963 6.034 ________
________ _________73,997 NET POSITION Net investment in capital assets 231,291 223,032 60,323 9,154 263,659 787,459 16,365 Restricted for:
Debt service 16,536 1,274 384 2,377 20,571 Capital projects 15,852 2,670 9,829 11,616 39,967 Other purposes 10,593 10,593 41,169 13,738 135,650 Unrestricted Total net position $
75,719 349,991 $234,093 7,117
$111,705 $ (2,093) 7.061 $, 291,390 994,240 26,843 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (14,567)
Net position of business-type activities $ 979,673 36
CITY OF ANAHEIM Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Year Ended June 30, 2013 (inthousands)
Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities
- Electric Water Sanitation Golf Entertainment Internal Utility Utility Utility Courses Venues Total Service Funds Operating revenues:
Sales of light and power $ 405,760 $ 405,760 Transmission revenues 41,854 41,854 Sales of water $ 60,145 60,145 Solid waste collection fees $ 40,764 40,764 Wastewater fees 11,894 11,894 Street cleaning fees 3,227 3,227 Green fees and cart rentals $ 4,478 4,478 Facilities rental $ 23,236 23,236 Concession fees 136 5,025 5,161 Other 4.344 640 1,345 145 1,395 7,869 $ 157,813 Total operating revenues 451,958 60,785 57,230 4,759 29,656 604,388 157,813 Operating expenses:
Cost of purchased power 279,842 279,842 Fuel and generation of power 21,987 21,987 Cost of purchased water 27,729 27,729 Treatment and pumping of water 6,896 6,896 Maintenance, operations and administration 42,937 9,357 48,586 3,883 26,713 131,476 37,260 Insurance premiums and claims 9,500 Compensated absences and other benefits 9,742 65,665 112,710 Depreciation and amortization 39,969 2,297 545 13,112 4,479 Total operating expenses 384,735 53,724 50,883 4,428 39,825 533,595 163,949 Operating income (loss) 67,223 7,061 6,347 331 (10,169) 70,793 (6,136)
Nonoperating income (expenses):
Intergovernmental revenues 276 242 518 Investment income (loss) 1,991 788 181 (4) 367 3,323 (236)
Debt service recovery 434 434 Interest expense (31,480) (3,031) (1,755) (33) (4,812) (41,111) (87)
Gain (loss) from disposal of capital assets (9) (112) 1121) 299 Total nonoperating income (expenses) (29,489) (1,967) (1,341) (37) (4,123) (36,957) (24)
Income (loss) before contributions and transfers 37,734 5,094 5,006 294 (14,292) 33,836 (6,160)
Capital contributions 3,782 754 906 2,448 7,890 Transfers in 110 16 14,349 14,475 Transfers out (22,624 (3,328) (2,289) (250) (28,491) (61)
Change in net position 19,002 2,536 3,623 44 2,505 27,710 (6,221)
Net position at beginning of year, as restated 330,989 231,557 108,082 7,017 288,885 49,429 Net position at end of year $ 349,991 $ 234,093 $111,705 $ 7,061 $ 291,390 $ 43,208 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (1,5241 Change in net position of business-type activities
$ 26,186 The accompanying notes are an intergral part of these financial statements. 37
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2013 (inthousands)
Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment Internal Utility Utility Utility Courses Venues Total Service Funds Cash flows from operating activities:
Receipts from customers and users $ 457,545 $ 59,728 $ 55,526 $ 4,476 $ 29,211 $ 606,486 Receipts from interfund services provided 2,019 330 15 2,364 $ 157,694 Payments to suppliers (305,121) (28,616) (37,997) (3,069) (8,452) (383,255) (23,961)
Payments for salaries, wages and other benefits (35,790) (13,028) (6,887) (497) (16,631) (72,833) (126,377)
Payments for interfund services used (8,808) (4,324) (3,173) (287) (2.682) (19,274) (3,266)
Payments for insurance premiums and claims (9,210)
Other receipts (payments) 1,330 257 1,587 (48)
Net cash provided by (used for) operating activities 109,845 14,090 8,814 880 1,446 135,075 (5,168)
Cash flows from noncapital financing activities:
Receipt of interfund balances 13 Payment of interfund balances (10)
Transfers in 16 14,298 14,314 Transfers out (22,573) (3,263) (2,289) (250) (28,375) (61)
Operating grant receipts 298 150 448 Net cash provided by (used for) noncapital financing activities (22,573) (2,949) (2,139) (250) 14,298 (13,613) (58)
Cash flows from capital and related financing activities:
Proceeds from sale of capital assets 357 Capital contributions 3,169 318 1,360 4,847 Capital purchases (43,501) (23,355) (7,441) (164) (15,603) (90,064) (3,477)
Proceeds of borrowing, net of premium 147,984 147,984 Transfer to bond escrow agent (96,603) (96,603)
Bond Issuance costs (470) (470)
Principal payments on long-term debt (18,995) (1,880) (880) (12,756) (34,511) (1,112)
Interest payments (33,880) (4,532) (2,118) (50) (4,547) (45,127) (87)
Debt service recovery 2,444 2,444 Payment of interfund balances for capital purposes (498) (498)
Transfers in (out) for capital purposes 110 (65) 45 Net cash used for capital and related financing activities (42,186) (29,514) (9,079) (712) (30,462) (111,953) (4,319)
Cash flows from Investing activities:
Purchase of investment securities (93,116) (5,897) (13,775) (241) (14,236) (127,265) (21,222)
Proceeds from sale and maturity of investment securities 83,249 5,793 10,204 236 7,667 107,149 21,642 Interest received 6,709 1,090 619 4 690 9,112 852 Collection of note receivable 17 17 Net cash provided by (used for) investing activities (3,158) 1,003 (2,952) 1JJ) (5,879) (10,987)
Increase (decrease) in cash and cash equivalents 41,928 (17,370) (5,356) (83) (20,597) (1,478) (8,273)
Cash and cash equivalents at beginning of the year 71,813 25,935 38,540 355 32,050 168,693 33,312 Cash and cash equivalents at end of the year $ 113,741 $ 8,565 $ 33,184 $ 272 $ 11,453 $ 167,215 $ 25,039 The accompanying notes are an intergral part of these financial statements. 38
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2013 (in thousands) (continued)
Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment Internal Utility Utility Utility Courses Venues Total Service Funds Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:
Operating income (loss) $ 67,223 $ 7,061 $ 6,347 $ 331 $ (10,169) $ 70,793 $ (6,1361 Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization 39,969 9,742 2,297 545 13,112 65,665 4,479 Increase in provision for decommissioning costs 388 388 Changes in assets and liabilities that provided (used) cash:
Accounts receivable (951) (743) (415) (24) (154) (2,287) (1,030)
Inventories (1,378) (35) (1,413) (24)
Prepaids and other assets (10,026) (140) 16 (10,150) (756)
Note receivable 15 Accounts payable 6,047 (1,810) 530 27 (1,070) 3,724 (275)
Wages payable 16 (1) (1) 3 2 19 (382)
Unearned revenues (70) (70) 291 Compensated absences, (OPEB) and self-insurance liability (1,350)
Deposits (14) (8) 56 (2) (221) (189)
Regulatory credits 8,571 24 8,595 Total adjustments 42,622 7,029 2,467 549 11,615 64,282 968 Net cash provided by (used for) operating activities S109,845 $ 14,090 $ 8,814 $ 8 1,4 $ 135,075 $ (5,168)
Schedule of noncash investing, capital and noncapital financing activities:
Capital assets financed through capital leases $ 787 Capital contributions $ 613 $ 436 $ 2,448 $ 3,497 Transfers in (out) of capital assets (51) 51 Decrease in fair value of investments (4,593) (255) $ (380) $ (8) (279) (5,515) (956)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents $ 17,538 $ 5,073 13,768 $ 272 $8,870 $ 45,521 $ 25,039 Restricted cash and cash equivalents, current portion 62,515 1,632 2,302 197 66,646 Restricted cash and cash equivalents, noncurrent portion 33,688 1,860 17,114 2,386 55,048 Total cash and cash equivalents $ I13,741 $ 8,565 1_33,184 272 11,453 $ 167,215 $ 25,039 The accompanying notes are an intergral part of these financial statements. 39
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CITY OF ANAHEIM Statement of Fiduciary Net Position (Deficit)
Fiduciary Funds June 30, 2013 (inthousands)
Successor Agency to the Former Anaheim Redevelopment Agency Investment Private Purpose Agency Trust Funds Trust Fund Funds ASSETS Restricted cash and cash equivalents $ 217 $ 37,687 $ 5,046 Restricted investments 451 624 3,256 Accrued interest receivable 3 151 Accounts receivable, net 67 57 Notes receivable, net 1,843 Prepaid and other assets 467 Unamortized debt issuance costs 2,572 Land held for resale, net 18,098 Capital assets, net Nondepreciable 32.539 Depreciable 45,094 Total assets 671 139,142 $ 8,359 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 2,017 Total deferred outflows of resources 2,017 LIABILITIES Accounts payable 1,573 Wages payable 33 Interest payable 6,395 Deposits 332 Unearned revenues 42 Due to City of Anaheim 1,056 Due to bond holders 8,359 Long-term liabilities:
Due within one year 5,392 Due in more than one year 237,213 Total liabilities 252,036 8,359 NET POSITION Held in trust for pool participants 671 Held in trust for other purposes (deficit) (110,877)
Total net position (deficit) $ 671 $ (110,877)
The accompanying notes are an intergral part of these financial statements. 41
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CITY OF ANAHEIM Statement of Changes in Fiduciary Net Position (Deficit)
Fiduciary Funds Year Ended June 30, 2013 (inthousands)
Successor Agency to the Former Anaheim Redevelopment Agency Investment Private Purpose Trust Funds Trust Fund ADDITIONS Property taxes $ 27,994 Contributions to pooled investments $ 2,335 Interest and investment income 440 Rental income 2,028 Other 290 Total additions 2,335 30,752 DEDUCTIONS Distributions from pool investments 2,701 Salaries and administration 2,983 Program expenses 6,758 Depreciation 1,599 Interest expense 13,065 Total deductions 2,701 24,405 Change in net position (366) 6,347 Net position (deficit) held in trust at beginning of year, as restated 1,037 (117,224)
Net position (deficit) held in trust at end of year $ 671 $ (110,877)
The accompanying notes are an intergral part of these financial statements. 43
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CITY OF ANAHEIM Notes to Financial Statements entered into a noncancelable long-term lease with the CCA. which provides for (Amounts in thousands) lease payments in amounts sufficient to meet the annual debt service requirements on the certificates of participation issued by the CCA to finance the NOTE I -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES: construction of the facility. The lease is a financing arrangement, which transfers the ownership of the facility to the City at the end of the lease term, and the sole The financial reporting entity activity of the CCA is to provide financing for the City. As such, the financial data for the CCA has been blended into the City's CAFR in the government-wide As defined by U. S. generally accepted accounting principles (GAAP) that are business-type activities and in the fund financial statements with the City's established by the Governmental Accounting Standards Board (GASB), the Convention, Sports and Entertainment Venues Fund, as all activity related to the financial reporting entity consists of the primary government, as well as its Anaheim Convention Center is accounted for in this enterprise fund. The capital component units, which are legally separate organizations for which the elected lease has been eliminated in the financial statements. For a copy of the CCA's officials of the primary government are financially accountable. Financial separate financial statements, contact the Finance Director of the City.
accountability is defined as 1) appointment of a voting majority of the component unit's board, and either a) the ability to impose will by the primary Anaheim Public Improvement Corooration IAPIC), a non-profit corporation, was government, or b) the possibility that the component unit will provide a financial created primarily to finance several construction projects in the City. City Council benefit to or impose a financial burden on the primary government; and 2) the members, in separate session, serve as the governing board of APIC. The City has component unit is fiscally dependent on and there is a potential for the entered into noncancelable long-term leases with APIC, which provide for lease component unit to provide specific financial benefit to or impose financial payments in amounts sufficient to meet the annual debt service requirements on burden on the primary government regardless of whether the component unit the certificates of participation issued by APIC to finance these construction has a) a separately elected government board, b) a governing board appointed projects. The leases are financing arrangements, which transfer ownership of the by a higher level of government, or c) a jointly appointed board. constructed assets to the City at the end of the lease terms. The financial data of APIC has been blended into various governmental and business-type activities The accompanying financial statements present the City of Anaheim (City), the and funds of the City as applicable, and the capital leases have been primary government, and its component units. The financial data of the eliminated.
component units are included in the City's reporting entity because of the significance of their operational or financial relationships with the City. Anaheim Public Financina Authority (Authority), a joint powers authority, was established as a vehicle to reduce local borrowing costs and promote greater The component units described below are each legally separate from the City, use of existing and new financial instruments and mechanisms. City Council but are so intertwined with the City that they are, in substance, the same as the members, in separate session, serve as the governing board of the Authority.
City. They ore reported as part of and accountable to the City and blended into Financial activity of the Authority has been blended into the City's CAFR into the government-wide and fund financial statements. various governmental and business-type activities and funds of the City as applicable.
Anaheim Housina Authority (Housina Authority) is a separate entity primarily funded by the U.S. Department of Housing and Urban Development to administer The City is a participant in three joint ventures and jointly-owned properties (see funds received under the Federal Housing Assistance Payments program. City note 11), which are not considered part of the financial reporting entity, as the Council members, in separate session, serve as the governing board of the City does not have significant equity interests in the joint ventures and jointly-Housing Authority, and all accounting and administrative functions are performed owned properties.
by the City, The financial activity of the Housing Authority has been blended into the City's Comprehensive Annual Financial Report (CAFR) in the government- Basic financial statements wide governmental activities and in the fund financial statements as the Housing Authority Special Revenue Fund. In accordance with GASB Statement No. 34 - Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, the Community Center Authority (CCA), a joint powers authority, was created basic financial statements include both government-wide and fund financial primarily to finance the initial construction of the Anaheim Convention Center. A statements.
five-member board appointed by the City Council governs the CCA. The City has 45
CITY OF ANAHEIM The government-wide financial statements (Statement of Net Position and City are offset by program revenues. Direct expenses are those that are clearly Statement of Activities) report on the City and its component units as a whole, identifiable with a specific function or program. Indirect expenses for excluding fiduciary activities. Governmental activities, which normally are administrative overhead are allocated among the functions and programs using supported by taxes and intergovernmental revenues, are reported separately a full cost allocation approach and are presented separately to enhance from business-type activities, which rely to a significant extent on fees and comparability of direct expenses between governments that allocate direct charges for support. All activities, both governmental and business-type, are expenses and those that do not. Interest on general long-term debt Is not reported in the government-wide financial statements using the economic allocated to the various functions, Program revenues Include: I) charges to resources measurement focus and the accrual basis of accounting, which customers or users who purchase, use or directly benefit from goods, services or includes long-term assets and receivables as well as long-term debt and privileges provided by a particular function or program and 2) grants and obligations. The government-wide financial statements focus more on the contributions that are restricted to meeting the operational or capitol sustainability of the City as an entity and the change in aggregate financial requirements of a particular function or program. Taxes, unrestricted investment position resulting from the activities of the fiscal period. income and other revenues not identifiable with particular functions or programs are included as general revenues. The general revenues support the net costs of Generally, the effect of interfund activity has been removed from the the functions and programs not covered by program revenues.
government-wide financial statements, except for interfund services provided and used. Net interfund activity and balances between governmental activities Also, part of the basic financial statements are fund financial statements for and business-type activities are shown as internal balances, net, in the governmental funds, proprietary funds and fiduciary funds, even though the latter government-wide financial statements. The "doubling up" effect of internal are excluded from the government-wide financial statements. The focus of the service fund activity has been eliminated from the government-wide financial fund financial statements is on major funds, as defined by GASB Statement No.
statements with the expenses shown in the various functions and programs on the 34. Although this reporting model sets forth minimum criteria for determination of Statement of Activities. major funds (a percentage of assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of fund Further, certain eliminations are also made to transfers of resources between category and of the governmental and enterprise funds combined), it also gives funds in the fund financial statements so that only the net amount of the transfers governments the option of displaying other funds as major funds. Other nonmajor are shown in the governmental activities and business-type activities columns. funds, as well as the internal service funds, are combined in a single column on the fund financial statements.
The government-wide Statement of Net Position reports all financial and capital resources of the City (excluding fiduciary funds). It is displayed in a format of The City reports the following major governmental funds:
assets and deferred outflows of resources less liabilities and deferred inflows of resources equal net position, with the assets and liabilities shown in order of their The General Fund is the City's primary operating fund. It accounts for all relative liquidity. Net positions are required to be displayed in three components: financial resources of the general government, except those required to
- 1) net investment in capital assets 2) restricted, and 3) unrestricted. Investment in be accounted for in another fund.
capital assets, represents capital assets net of accumulated depreciation which is reduced by outstanding balances of any bonds, notes or other borrowings that The Housing Authority Special Revenue Fund accounts for the providing are attributable to the acquisition, construction, or improvement of those assets. of housing assistance to low and moderate-income families in the Restricted net positions are those with constraints placed on their use by either: 1) Anaheim area. Financing is provided primarily from Federal Section 8, creditors (such as through debt covenants), grantors, contributors, or laws or U.S. Department of Housing and Urban Development (HUD) receipts.
regulations of other governments, or 2) law through constitutional provisions or enabling legislation. All net positions not otherwise classified as restricted, are The City reports the following major enterprise funds:
shown as unrestricted. Generally, the City would first apply restricted resources when an expense is incurred for purposes for which both restricted and The Electric Utility Fund accounts for the operation of the City's electric unrestricted net positions are available. utility, a self-supporting activity, which renders services on a user charge basis to residents and businesses located in Anaheim.
The government-wide Statement of Activities demonstrates the degree to which both direct and indirect expenses of the various functions and programs of the 46
CITY OF ANAHEIM The Water Utility Fund accounts for the operation of the City's water utility, a self-supporting activity, which renders services on a user charge Fiduciary Funds account for assets held by the City in a trustee or agency basis to residents and businesses located in Anaheim. capacity on behalf of others and, therefore, are not available to support City programs. The Fiduciary Funds are not included In the government-wide financial The Sanitation Utility Fund accounts for the operation of the City's solid statements as they are not an asset of the City. The City reports the following waste and sanitation program, a self-supporting activity, which provides fiduciary funds:
for the collection and disposal of solid waste, street sweeping, and sanitary sewer cleaning on a user charge basis to residents and The Investment Trust Fund is used to account for the external portion of businesses located in Anaheim. the City's investment pool, which commingles resources of legally separate entities administered by the City in an investment portfolio for The Golf Courses Fund accounts for the operation of the Anaheim the benefit of all participants. The entities include two Joint Powers Municipal ("Dad Miller") Golf Course and the Anaheim Hills Golf Course, Authorities (JPA) governed by local boards. The City separately maintains a self-supporting activity that renders services on a user charge basis. these entities' money in two individual funds; these funds represent the assets, primarily cash and investment, and the related net position held in The Convention, Sports and Entertainment Venues Fund accounts for the trust by the City to disburse these monies on demand.
operations of the Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim. See note 12 for The Private Purpose Trust Fund is used to account for resources legally further discussions of the Angel Stadium of Anaheim and The City held in trust for use by the Successor Agency to the Former Anaheim National Grove of Anaheim. Redevelopment Agency (Successor Agency). The Former Anaheim Redevelopment Agency, a former component unit of the City, dissolved The internal service funds, which provide services to the other funds of the City, on February 1,2012 under the State of California Assembly Bill I X26.
are presented in a single column in the proprietary funds financial statements.
Because the principal users of the internal service funds are the City's The Agency Fund is used to account for the monies collected and paid governmental activities, the assets and liabilities of the internal service funds are on behalf of the Mello-Roos Districts located in the City.
consolidated into the governmental activities column of the government-wide Statement of Net Position. The costs of the internal service fund services are Measurement focus and basis of accounting spread to the appropriate function or program on the government-wide Statement of Activities and the revenues and expenses within the internal service The governmental funds financial statements are prepared on a current financial funds are eliminated from the government-wide financial statements to avoid resources measurement focus and modified accrual basis of accounting. To any doubling effect of these revenues and expenses. The City operates four conform to the modified accrual basis of accounting, certain modifications must internal service funds: be made to the accrual method. These modifications are outlined below:
The General Benefits and Insurance Fund is used to account for Revenue is recorded when it becomes both measurable and available employee compensated absences, retirement and health benefits, and (received within 60 days after year-end). Revenue considered susceptible to self-insurance programs. accrual includes: property taxes, sales and use taxes, transient occupancy taxes, licenses, fees and permits, intergovernmental revenues (including The Motorized Equipment Fund is used to account for motorized motor vehicle license fees), charges for services, fines, forfeits and penalties, equipment used by City departments. and interest.
The Information and Communication Services Fund is used to account for Expenditures are recorded when the related fund liability is incurred. Principal data processing and telecommunication services provided to City and interest on general long-term debt are recorded as fund liabilities when departments. due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year.
The Municipal Facilities Maintenance Fund is used to account for office maintenance services and equipment used by City departments.
47
CITY OF ANAHEIM Disbursements for the purchase of capital assets providing future benefits are On the proprietary funds financial statements, operating revenues are those that considered expenditures. Bond proceeds are reported as other financing flow directly from the operations of the activity, i.e. charges to customers or users source. who purchase or use the goods or services of that activity. Operating expenses are those that are incurred to provide those goods or services. Non-operating With this measurement focus, operating statements present increases (revenues revenues and expenses are items such as investment income and interest and other financing sources) and decreases (expenditures and other financing expense that are not a result of the direct operations of the activity.
uses) in net current assets. This is the traditional basis of accounting for governmental funds and also is the manner in which these funds are normally The Electric and Water Utility funds follow the uniform system of accounts budgeted. This presentation is deemed most appropriate to: 1) demonstrate prescribed by the Federal Energy Regulatory Commission (Electric Utility) and the legal and covenant compliance, 2) demonstrate the sources and uses of liquid California Public Utilities Commission (Water Utility). The utilities are not subject to resources, and 3) demonstrate how the City's actual revenues and expenditures the regulations of these commissions.
conform to the annual budget. Since the governmental funds financial statements are presented on a different basis than the governmental activities The reporting focus for the investment trust fund and the private-purpose trust column of the government-wide financial statements, a reconciliation is provided fund is upon net positions and changes in net positions and employs accounting immediately following each fund statement. These reconciliations briefly explain principles similar to proprietary funds. The agency fund has no measurement the adjustments necessary to transform the fund financial statements into the focus but utilizes the accrual basis of accounting for reporting its assets and governmental activities column of the government-wide financial statements. liabilities.
The proprietary funds financial statements are prepared on the same basis Cash and Investments (economic resources measurement focus and accrual basis of accounting) as the government-wide financial statements. Therefore, most lines for the total The City pools available cash from all funds for the purpose of increasing income enterprise funds on the proprietary funds financial statements will directly through investment activities. Investments in U.S. Treasury obligations and agency reconcile to the business-type activities column on the government-wide securities and medium term corporate notes are carried at fair value based on financial statements. Because the enterprise funds are combined into a single quoted market prices. Participating guaranteed investment contracts and business-type activities column on the government-wide financial statements, flexible repurchase agreements are carried at fair value. Money market mutual certain interfund activities between these funds are eliminated in the funds are carried at fair value based on the fund's share price. The City's consolidation for the government-wide financial statements, but are included in investment in the State of California Local Agency Investment Fund (LAIF) is the fund columns in the proprietary funds financial statements. The net costs of carried at fair value based on the value of each participating dollar as provided the internal service funds are also partially allocated to the business-type by LAIF. LAIF is authorized by California Government Code (Government Code) activities column on the government-wide financial statements. A reconciliation Section 16429 under the oversight of the Treasurer of the State of California, of the total enterprise funds on the fund financial statements to the business-type Commercial paper, participating guaranteed investment contracts and activities column on the government-wide financial statements is provided on the negotiable certificates of deposit are carried at amortized cost (which face of the fund financial statements. approximates fair value). Interest income, which includes changes in fair value, on investments is allocated to all funds on the basis of daily cash and investment Enterprise funds account for operations where the intent of the City is that the balances. See note 3 for further discussion.
costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges and fees. Under GASB For purposes of the basic financial statements, the City considers cash Statement No. 34, enterprise funds are also required for any activity whose equivalents to be highly liquid short-term investments that are readily convertible principal revenue sources meet any of the following criteria: 1) any activity that to known amounts of cash and mature within three months of the date they are has issued debt backed solely by the fees and charges of the activity, 2) the cost acquired. Cash and cash equivalents are included in the City's cash and of providing services for an activity, including capital costs such as depreciation investments pool and in accounts held by fiscal agents.
or debt service, must legally be recovered through fees and charges, or it is the policy of the City to establish activity fees or charges to recover the cost of providing services, including capital costs.
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CITY OF ANAHEIM Notes receivable by the Electric Utility for future decommissioning of its former ownership share of the San Onofre Nuclear Generating Station, Units 2 and 3 (SONGS) and the San In the government-wide financial statements, notes receivable of $73,258 Juan Generating Station, Unit 4, are classified as restricted on both the includes accrued interest receivable of $13,181, ranging from 3% to 10% interest government-wide Statement of Net Position and proprietary funds Statement of per annum, and is net of allowances of $10,653 for uncollectible accounts at Net Position.
June 30, 2013. Allowances for uncollectible accounts were estimated based on certain assumptions; therefore, actual results could differ from the estimates. Capital assets In the governmental funds financial statements, due to the extended period of Under GASB Statement No. 34, all capital assets, whether owned by time over which notes receivable are to be collected and the contingent nature governmental activities or business-type activities are recorded and depreciated of certain sources of repayment, the City has recorded deferred inflows of in the government-wide financial statements. No long-term capital assets or resources equal to the outstanding principal and accrued interest balance of the depreciation are shown in the governmental funds financial statements.
notes receivable.
Capital assets, including public domain infrastructure (e.g., roads, bridges, Inventories sidewalks and other assets that are immovable and of value only to the City), are defined as assets with an initial, individual cost of more than $5 ($50 for Inventories are stated at average cost. Inventories in the General Fund are infrastructure) and an estimated useful life of greater than one year. Capital recorded as expenditures when used and are reported under the consumption assets are recorded at cost or estimated historical cost if purchased or method of accounting. constructed. Donated capital assets are recorded at the estimated fair market value at the date of donation.
Prepaid and other assets The costs of normal maintenance and repairs that do not add to the value of the Certain payments to vendors such as insurance premiums, prepaid rents, and capital asset or materially extend capital assets lives are not capitalized. Major deposits for real property acquisitions reflect costs applicable to future periods improvements are capitalized and depreciated over the remaining useful lives of and are recorded as prepaid and other assets in both government-wide and the related capital assets.
fund financial statements. These costs will be recognized in the period when services are received or when the City receives title to the real property. Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest incurred during the construction phase of projects is Land held for resale reflected in the capitalized value of the asset constructed for proprietary funds.
For the year ended June 30, 2013, business-type activities capitalized net interest The Housing Authority has recorded parcels of land held for resale in their costs of $3,806 in the government-wide and fund financial statements. Total financial records. The properties held for resale are for the primary purpose of interest expense incurred by the business-type activities (and the enterprise funds developing low and moderate income housing and are recorded at the lower of on the proprietary funds statements) before capitalization was $44,917.
cost or estimated net realizable value. At June 30, 2013, land held for resale with an original cost of $35,442 was recorded net of the allowance for decline in value Capital assets are depreciated using the straight-line method over the following of $18,469 and totaled $16,973, with this amount offset by a restriction of fund estimated useful lives:
balance for low and moderate Income housing in the Housing Authority major governmental fund financial statement. Buildings, structures and improvements 5 to 85 years Utility plant 5 to 75 years Restricted assets Machinery and equipment 2 to 40 years Infrastructure 25 to 75 years Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are classified as restricted on the Statement of Net Position, or The net book value of capital assets retired or disposed of, related salvage value Balance Sheet, because they are maintained in separate bank accounts and proceeds and the costs of removal are recorded in accumulated depreciation in their use is limited by applicable debt covenants. Additionally, resources set aside 49
CITY OF ANAHEIM the Electric Utility and Water Utility Funds. In all other cases, these amounts are deferred and will be recognized as an inflow of resources in the period recorded as gains or losses on disposal of capital assets. that the amounts become available.
Capital assets transferred between funds are transferred at their net book value 2) Regulatory credits accumulated from collections of the Electric and (cost less accumulated depreciation), as of the date of the transfer. Water Utility customers reported in business-type activities. These amounts provide recovery in current period for costs to be incurred in Debt issuance costs future periods. (Refer to discussion of Regulatory Credits that follows).
Debt issuance costs, with the exception of prepaid insurance costs, are Deferred inflows of resources that are included in the fund financial statements recognized as an outflow of resources (expense/expenditure) in the period when the and government-wide statements at June 30, 2013 are as follows:
debt is issued. Prepaid insurance costs are capitalized and amortized over the Nonmajor lives of the related debt issues on a basis that approximates the effective-interest General Housing Governmental method.
Governmental Funds Fund Authority Funds Total Bond refunding costs Taxes $ 9,432 $ 9,432 Grants $ 36 $ 18,019 18,055 Bond refunding costs are deferred and amortized over the life of the new bond or Other Revenues 216 216 over the life of the old bond, whichever is shorter, on a basis that approximates the effective-interest method. These costs are shown as a deferred outflow of Notes and long term receivable 1,056 55,472 40,198 96,726 resources on the Statement of Net Position $ 10,704 $ 55,508 $ 58,217 $124,429 Accretion Electric Water Business-type activities Utility Utility Total Accretion is an adjustment of the difference between the price of a bond or certificate of participation (COP) issued at an original discount and the par value Regulatory credits $ 67,963 $ 6,034 $ 73,997 of the bond or COP. The accreted value is recognized as it accrues by fiscal year.
Regulatory credits Deferred outflows of resources The Electric Utility's Rates, Rules, and Regulations provide for the Rate Stabilization Deferred outflows of resources represent consumption of net position that applies Account (RSA), formerly referred to as Power Cost Adjustment/Rate Stabilization to a future period(s) and so will not be recognized as an outflow of resources Account, which contains two components: the Power Cost Adjustment (PCA)
(expense/expenditure) until then. In the Statement of Net Position, the City that was adopted by City Council on April 1, 2001, and the Environmental reported $2,377 in the governmental activities and $5,932 in the business-type Mitigation Adjustment (EMA) that was adopted by the City Council on January activities of deferred charges on refunding bonds in this category. A deferred 13, 2009. The PCA will reflect variations in the power supply or fuel costs. The EMA charge on refunding bonds results from the difference in the carrying value of debt will allow the recovery of environmental mitigation costs, such as greenhouse gas and its reacquisition price. This amount is deferred and amortized over the shorter emissions costs, the marginal cost differential between renewable power and of the life of the refunded or refunding debt. traditional fossil fuel based power. The RSA provides the City with operational and billing flexibility to mitigate material fluctuations in the cost of energy, loss of Deferred inflows of resources revenues or unbudgeted costs including unexpected long-term loss of a generating facility, unplanned limits on the ability to transmit energy to the City, Deferred inflows of resources represent acquisitions of fund balance or net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reported the followings in this category:
- 1) Unavailable revenues measured under the modified accrual basis of accounting reported in governmental funds. These amounts are 50
CITY OF ANAHEIM or major disasters. The RSA funded by PCA and EMA collections are billed to in the Statement of Net Position. Also included In long-term liabilities In the customers through standard rates. Statement of Net Position at June 30, 2013, Is compensatory time liability of $295.
Since inception, the Electric Utility has collected $189,125 in regulatory credits Changes in the City's compensated absences liability In fiscal year 2013 were as related to PCA. As of September 12, 2012, the PCA rates were changed from follows:
$0.0190 to $0.0150 per kWh for all domestic retail customers, excluding residential lifeline customers, and from $0.0145 to $0.0100 per kWh for all commercial, Compensated absences liability at beginning of year $ 18,353 industrial and municipal customers. At June 30, 2013, the deferred inflows of Estimated compensated absence benefits earned 20,365 resources recorded for regulatory credits related to PCA totaled $40,707 for the Electric Utility. During fiscal year 2013, $40,756 was recognized as RSA revenues to Compensated absences used (20,496) mitigate the impact of energy costs and operation costs. Compensated absences liability at end of year $ 18,222 Since inception, the Electric Utility has collected $60,329 in regulatory credits related to EMA. As of September 12, 2012, the EMA rate was changed from Nuclear fuel and decommissioning costs
$0.0100 to $0.0150 per kWh for all domestic customers and from $0.0050 to
$0.0100 per kWh for all other customers. At June 30, 2013, the deferred inflows of Federal regulations require the Electric Utility to provide for the future resources recorded for regulatory credits related to EMA totaled $27,256. During decommissioning costs of its former ownership share of San Onofre Nuclear fiscal year 2013, $244 was recognized as RSA revenues to mitigate the impact of Generating Station (SONGS). The Electric Utility has established a provision for environmental mitigation costs. decommissioning costs of SONGS and restoration of the beachfront at San Onofre, California where it is located. A separate irrevocable trust account has The Water Utility's rates, rules and regulations provide for a water regulatory credit been established for prior and future amounts funded and these amounts are account to reflect variations in the cost of water to the Water Utility and provide classified as restricted assets in the accompanying statement of net position. At more stable retail water rates to the customers of the City's Water Utility. This rate June 30, 2013, the provision for decommissioning costs totaled $127,373. For the stabilization account (RSA) provides increased flexibility by allowing the Water year ended June 30, 2013, the Electric Utility has recorded decommissioning costs Utility to maintain financial performance indicators and goals specified in bond incurred for SONG in the amount of $52, which is included in the fuel and covenants. The account is funded through expense reimbursements such as generation component in operating expenses.
water supply cost refunds received from the Metropolitan Water District and Orange County Water District and other miscellaneous credits and revenue. At The City sold its ownership share in SONGS to Southern California Edison (SCE) on June 30, 2013 the deferred inflows of resources recorded for regulatory credits December 29, 2006. The Electric Utility's decision to divest SONGS was largely totaled $6,034 for the Water Utility. During fiscal year 2013, no PCA revenue was based on the need for operating flexibility to provide both peak and base load recognized for the Water Utility. power, ongoing cost concerns for environmental disposal of nuclear waste and marine mitigation, as well as escalating decommissioning costs. See note 11 for Compensated absences further discussion.
Compensated absences, vacation and sick pay, for all City employees are The California Public Utilities Commission approved a cost estimate by SCE for the generally paid by the General Benefits and Insurance Fund, an internal service decommissioning costs of SONGS. At June 30, 2013, SCE's future cost estimate for fund. The General Benefits and Insurance Fund is reimbursed through payroll the Electric Utility's share of decommissioning costs is $112,879. The Electric Utility charges to all other funds based on estimates of benefits to be earned and used currently has $127,373 in irrevocable trust for the decommissioning costs. Based during the fiscal year. It is the policy of the City to pay all accumulated vacation on an assumed 1.2% rate of return and SONG shutting down in January 2012, it is pay when an employee retires or terminates. Accumulated sick pay in excess of estimated that the Electric Utility's current reserve of $127,373 will grow to 175 hours0.00203 days <br />0.0486 hours <br />2.893519e-4 weeks <br />6.65875e-5 months <br /> per employee is paid to employees at their then current rate of pay in $133,597 to fund its future decommissioning costs estimate of $132,053 in fiscal January each year or upon termination from the City. Employees are paid for all year 2017. On June 7, 2013, Southern California Edison announced the accumulated sick pay when they retire from the City. Vested vacation and sick permanently retirement of SONGS plant. The Electric Utility will continue to fund pay benefits are accrued when incurred in the General Benefits and Insurance the reserve and recognize this expense until the new decommissioning study is Fund and at June 30, 2013, totaled $17,927 and is included in long-term liabilities approved by the Nuclear Regulatory Commission.
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CITY OF ANAHEIM The Electric Utility has a 10.04% ownership interest of the San Juan Generating or committed. The City Council has by Resolution authorized the City Station, Unit 4 (SJ). The Electric Utility is providing for the future demolition and Manager or his designee to establish, modify or rescind on assigned reclamation costs of its ownership share of SJ. As of June 30, 2013, the Electric fund balance.
Utility has recorded a provision for decommissioning costs for SJ of $3,960. For the year ended June 30, 2013, the Electric Utility has recorded decommissioning costs Unassigned fund balance accounts for the residual balance of the City's incurred for SJ of $440 in operating expenses. Based on the cost projections, the general fund and includes all spendable amounts not contained in Electric Utility has estimated $440 in costs per year until 2027 to fund this other classifications. In other governmental funds, the unassigned obligation. classification reports a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed Pension plan or assigned.
Full-time City employees are members of the State of California Public Generally, the City would first apply restricted resources when expenditures Employees' Retirement System (PERS). The City's policy is to fund all pension incurred for which both restricted and unrestricted resources are available.
costs accrued; such costs to be funded are determined annually as of July 1 by Further, when the components of unrestricted fund balance can be used for the System's actuary. See note 10 for further discussion. the same purpose, committed fund balance is applied first, followed by assigned fund balance. Unassigned fund balance is applied last.
Net position restricted by enabling legislation In all governmental funds, encumbered amounts have been restricted or The government-wide Statement of Net Position reports $196,853 of governmental assigned for specific purposes for which resources have already been activities restricted net position, of which $46,678 is restricted by enabling allocated. At June 30, 2013, encumbrances totaled $562, $35 and $22,765 in legislation. the General Fund, Housing Authority Special Revenue Fund, and other nonmajor governmental funds, respectively.
Fund balances The accumulated deficit fund balance at June 30, 2013 for Transportation In the fund financial statements, governmental funds report the following Improvement Projects included in nonmajor governmental funds in the classifications: amount of $3,794 will be eliminated in future years by the receipt of reimbursements for grant expenditures.
" Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or Budgetary principles contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for The City is required by its charter to adopt an annual budget on or before June example, inventories, prepaid or long term loans and notes receivable. 30 for the ensuing fiscal year. The General, special revenue, debt service, and capital projects governmental fund types and proprietary fund types have legally
" Restricted fund balance includes amounts when constraints placed on the adopted budgets approved by City Council. The level of budgetary control (that use of the resources are either imposed by external resource providers, is, the level at which expenditures cannot legally exceed the appropriated constitutional provisions or enabling legislation. amount) is established at the department level. From the effective date of the budget, the amounts stated herein as proposed expenditures/expenses become
" Committed fund balance includes amounts that can be used only for appropriations to the various City departments. Throughout the fiscal year the the specific purposes pursuant to constraints imposed by formal action of budget was amended to add supplemental appropriations. All amendments to the City's highest level of the decision-making authority, the City Council. the budget which change the total appropriation amount for any department The City Council can modify or remove the commitments by taking the require City Council approval and all increases in appropriations must be same kind of action it previously employed to commit those amounts. accompanied by an increase in revenue sources of a like amount to maintain a balanced budget. The City Manager has the authority to change individual
" Assigned fund balance includes amounts that the City intends to use for budget line items within a department as long as the total department's specific purposes but do not meet the criteria to be classified as restricted appropriation amount is not changed.
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CITY OF ANAHEIM The City utilizes an encumbrance system as a management control technique to Revenue recognition for Electric Utility, Water Utility, and Sanitation Utility Funds assist in controlling expenditures. All appropriations lapse at the end of the fiscal year, except for capital projects which are carried forward until such time as the Revenue is recorded in the period in which services are provided. Residential and project is completed or terminated and for encumbered balances that are re- smaller commercial customers are billed bimonthly and all other customers appropriated in the next year. monthly. At June 30, 2013 unbilled but earned service charges recorded in accounts receivable for the Electric Utility, Water Utility, and Sanitation Utility GASB Statement No. 34 allows that budgetary comparison statements for the Funds amounted to $20,923, $4,327, and $3,747, respectively. See note 8 for General Fund and major special revenue funds be presented in the basic discussion of pledged revenues.
financial statements rather than as Required Supplementary Information. These statements must display original budget, amended budget and actual results. Use of estimates Budgeted revenue amounts represent the original budget modified by City The preparation of financial statements in conformity with GAAP requires Council authorized adjustments during the year, which were contingent upon management to make estimates and assumptions that affect the reported new or additional revenue sources. Budgeted expenditure amounts represent amounts of certain assets and liabilities and disclosures of contingent assets and original appropriations adjusted for supplemental appropriations during the year. liabilities at the date of the financial statements and the reported amounts of Budgets are generally prepared in conformity with GAAP using the modified revenues and expenditures/expenses during the reporting period. As such, actual accrual basis of accounting, with the exception of capital leases, or other similar results could differ from those estimates.
instruments, and land held for resale, which are budgeted on a cash basis.
NOTE 2 - NEW ACCOUNTING PRONOUCEMENTS; CHANGES IN ACCOUNTING Property taxes PRINCIPLES AND RESTATEMENTS:
Property taxes attach as an enforceable lien on property as of January 1. Taxes On July 1, 2012, the city adopted the following new accounting pronouncements are levied on July 1 and are payable in two installments due on November 1 and issued by the GASB:
February 1 and become delinquent after December 10 and April 10. The County of Orange, California (County) bills and collects the property taxes and remits " GASB Statement No. 60, Accounting and Financial Reporting for Service them to the City in installments during the year. City property tax revenues are Concession Arrangements. This Statement addresses issues related to recognized when levied in the governmental funds to the extent that they result service concession arrangements (SCAs) between a transferor (a In current receivables collectable within 60 days after year-end. See note 8 for government) and an operator (governmental or nongovernmental entity) discussion of pledged property tax revenues. in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another The County is permitted by State law (Proposition 13) to levy taxes at 1% of full public asset (a "facility") in exchange for significant consideration and (2) market value (at time of purchase) and can increase the property tax rate no the operator collects and is compensated by fees from third party.
more than 2% per year from the full market value at the time of purchase. The City receives a share of this basic levy proportionate to what it received in the " GASB Statement No. 61, The Financial Reporting Entity: Omnibus - an 1976 and 1978 periods. amendment of GASB Statement No. 14 and No. 34. This Statement modifies certain requirements for inclusion of component units in the Entitlements, shared revenues and grants financial reporting entity; it amends the criteria for reporting component units as if they were part of the primary government in certain Entitlements and shared revenues are recorded at the time of receipt or earlier if circumstances, it also clarifies the reporting of equity interests in legally the susceptible to accrual criteria are met. Expenditure-driven grants are separate organizations.
recognized in the fund financial statements as revenue when the qualifying expenditures have been incurred, all eligibility requirements have been met, and " GASB Statement No. 62, Codification of Accounting and Financial reimbursement is received within the availability period. Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This Statement incorporates into the GASB's 53
CITY OF ANAHEIM guidance from all sources of generally accepted accounting principles The City is currently reviewing its accounting practices to determine the potential for state and local governments so that they derive from a single source. impacts on the financial statements for the following GASB Statements:
" GASB Statement No. 63, Financial Reporting of Deferred Outflow of " GASB Statement No. 66,an Amendment of GASB Statement No. 10 and Resources, Deferred Inflows of Resources, and Net Position. This Statement No. 62. This Statement resolves the conflicting guidance that resulted from provides guidance for deferred outflows of resources and deferred inflows the Issuance of two pronouncements. The statement amends Statement of resources. Deferred outflows and deferred inflows of resources are No. 10, Accounting and Financial Reporting for Risk Financing and Related defined as a consumption of net positions by the government that is Insurance Issues, by removing the provision that limits fund based reporting applicable to a future reporting period and the acquisition of net positions of an entity's risk financing activities to the general fund and the internal by the government that is applicable to a future reporting period. Net service fund type. It also amends Statement No. 62, Fund Balance Reporting position is defined as the residual of all other elements presented in a and Governmental Fund Type Definition, by providing specific guidance on statement of financial position. accounting for operating lease payments, purchased loan or group of loans, and service fees related to mortgaged loans. This Statement is effective
" GASB Statement No. 65. Items Previously Reported as Assets and Liabilities. for periods beginning after December 15, 2012.
This Statement establishes accounting and financial reporting standards that classify certain items that were previously reported as assets and " GASB Statement No. 68, this Statement provides guidance for employers liabilities as deferred outflows of resources or deferred inflows of resources, offering defined benefit pensions through plans administered as trusts or and recognizes certain items that were previously reported as assets and equivalent arrangements. It replaces certain requirements related to plan liabilities as outflows of resources or inflows of resources. trusts in Statement No. 27 Accounting for Pension by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Accounting changes adopted to conform to the provisions of these Pension Disclosures. This Statement establishes standards for measuring pronouncements should be applied retroactively. Except for GASB and recognizing liabilities, deferred outflows of resources, and deferred Statement No. 65, the implementation of these pronouncements has no inflows of resources, and expense/expenditures. For defined benefit material effect on amounts reported in the City's financial statements. pensions, this Statement identifies the methods and assumptions that The requirements of GASB Statement No. 65 caused the City to restate should be used to project benefit payments, discount projected benefit certain prior year net positions by the amount of the unamortized debt payments to their actuarial present value, and attribute that present value Issuance costs, as these costs should now be recognized as an expense in to periods of employee service. This Statement is effective for periods the period incurred. beginning after June 15, 2014. The impact to the City's financial statements in conforming to this Statement has yet to be determined.
The following table provides a reconciliation of net position at June 30, 2012, as previously reported, to net position at June 30, 2012, as restated:
Business-Governmental type Activities Activities Net position at June 30, 2012, as previously reported $ 1,040,358 $ 959,824 Reduction of unamortized debt issuance costs General government (1,300)
Electric Utility (4,720)
Water Utility (705)
Sanitation Utility (298)
Convention, Sports and Entertainment Venues (614)
Net position at June 30, 2012, as restated $ 1,039,058 $ 953,487 54
CITY OF ANAHEIM NOTE 3 - DEPOSITS AND INVESTMENTS: Deposits and investments are comprised of the followings at June 30, 2013:
The City maintains a cash and investment pool, which includes the cash Deposits $ 6,325 balances of all funds, and is invested by the City Treasurer to enhance interest earnings. The pooled interest earned, net of administrative fees, is reallocated to Investments 839,618 each fund based on their respective average daily cash balances. Total deposits and investments $ 845,943 The City's pooled investment fund has been reviewed by Standard and Poor's At June 30, 2013, deposits of $6,325 with a corresponding bank balance of Corporation (S&P) and received a credit rating of AAf/SI in August 2012. $10,527 were maintained in various federally regulated financial Institutions. The difference of $4,202 represents deposits in transit, outstanding checks, and other The City's investment policy further limits the permitted investments in reconciling items. Deposits with bank balances of $766 are Insured by the Federal Government Code Sections 53600 et al, 16429.1 and 53684 to the following: Depository Insurance Corporation. For deposits with bank balances totaling obligations of the United States government, federal agencies, and government $9,761, California state statutes require federally regulated financial institutions to sponsored enterprises; medium-term corporate notes; certificates of deposit; secure a city's deposits by pledging collateral consisting of either government bankers' acceptances; commercial paper; LAIF; repurchase agreements; reverse securities with a value of 110% of a city's total deposits or by pledging first trust repurchase agreements; and money market mutual funds. deed mortgage notes having a value of 150% of a city's total deposits. The collateral is required by regulation to be held by the counterparty's agent in the Deposits and investments are comprised of the following at June 30, 2013: name of the City.
Restricted Investments Cash and Cash and Cash Cash Restricted The City Treasurer prepares an investment policy statement annually, which is Equivalents Investments Equivalents Investments Total presented to the Budget, Investment and Technology Commission for review and Governmental activities: the City Council for approval. The approved investment policy Statement is General Fund $ 9,576 $ 19,851 $ 29,427 submitted to the California Debt and Investment Advisory Committee in Housing Authority 9,277 19,230 $ 2,285 30,792 accordance with Government Code.
NonmaJor govemmental funds 25,205 52,253 41,612 $ 38.911 157,981 Intornal service funds 25,039 51,907 76,946 The policy provides the basis for the management of a prudent, conservative Total governmental activities 69,097 143.241 43.897 38,911 295,146 investment program. Public funds are invested for the maximum security of Business-type activities: principal and to meet daily cash flow needs while providing a return. All Electric UlilIty 17,538 36,354 96,203 227,400 377,495 investments are made in accordance with the Government Code and, in Water Utility 5,073 10.515 3.492 8,487 27,567 general, the City Treasurer's policy is more restrictive than Government Code.
Sanitation Utility 13,768 24,473 19,416 57,657 Investments authorized by the Government Code and the City's investment policy Golf Courses 272 565 837 Convonllon. Sports and The following table identifies the investment types that are authorized for the City Entertainment Venues 8,870 18,387 2,583 10,120 39,960 by its investment policy which is more restrictive than Government Code. The Total business-lype aclivilles 45,521 90,294 121.694 246.007 503.516 table also identifies certain provisions of the City's investment policy that address Government.wide totals 114,618 233,535 165,591 284,918 798,662 interest rate risk, credit risk, and concentration of credit risk. This table does not Fiduciary funds 42,950 4,331 47,281 address investments of debt proceeds held by bond trustees that are governed Total cash and investments $ 114,618 $ 233,535 $ 208.541 $ 289,249 $ 845.943 by the provisions of debt agreements of the City, rather than the general provisions of the Government Code or the City's investment policy.
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CITY OF ANAHEIM Minimum Maximum Percentage Investment Maximum Maximum Rating Authorized Investment Type Maturity Allowed In One lIsuor Maximum Percentage Investment (S&P/Maodys None None None U.S, Treasury obligations Authorized Investment Type Maturity of Portfolio* in One Issuer /Fltch)
U.S. agency securities None None None U.S. Treasury obligations 5 Years 100% 100% None Guaranteed investment contracts None None None U.S. agency securities 5 Years 100% 40% None Collateralized investment contracts None None None Banker's acceptances 180 days 40% 5% None Flexible repurchase agreements None None None Commercial paper 270 days 25% 5% A-i;P-1;F-I 5% None Money market mutual funds None None None Negotiable certificates of deposit 360 days 25%
Repurchase agreements I Year 30% I year None LAIF None None None Reverse repurchase agreements 90 days 20% None None City of Anaheim Treasurer's investment portfolio None None None Medium-term corporate notes 5 Years 30% 5% A Money market mutual funds N/A 20% 10% None At June 30, 2013, the following investments represent five percent or more of the
$50 million $50 million per account per account None City's total investments controlled by bond trustees:
LAIF N/A Time certificates of deposit (TCD) 1 Year 20% 5% None Fair Issuer Investment Type Value %
- Excluding amounts held by bond trustees that are not subject to Government Blackrock #61 Money market mutual fund $ 54,904 14%
Code restrictions Federal Home Loan Bank U.S. agency securities 51,620 13%
LAIF LAIF 45,352 11%
The City's pooled investments comply with the requirements of the investment policy, GAAP requires disclosure of certain investments in any one issuer that Federal National Mortgage Association U.S. agency securities 35,926 9%
exceeds five percent concentration of the total investments. At June 30, 2013, Morgan Stanley Flexible repurchase agreeement 32,257 8%
the following investments represent five percent or more of the City's total pooled Federal Farm Credit Bank U.S. agency securities 23,382 6%
investments: Money market mutual fund 23,029 6%
Dreyfus Treas 521 US Bank Money Market Money market mutual fund 21,342 5%
Fair Iue Investment Type Value All guaranteed investment contracts have downgrade language that requires Federal National Mortgage Association U.S. agency securities $ 113,988 26% collateral should credit ratings drop below certain levels.
LAIF LAIF 60,256 14%
Federal Farm Credit Bank U.S. agency securities 55,981 13% Custodial credit risk Federal Home Loan Mortgage Corporation U.S. agency securities 29,760 7%
Federal Home Loan Bank U.S. agency securities 26.161 6% Custodial credit risk for investments is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities owned by the City with the exception of LAIF and money market mutual funds are deposited in trust for safekeeping with a custodial bank Investments authorized by debt agreements different from the City's primary bank. Securities are not held in broker accounts.
Funds held by LAIF and money market mutual funds are held in the City's name.
Investment of debt proceeds held by bond trustees is governed by provisions of the debt agreements, rather than the general provisions of the Government Custodial credit risk for investments held by bond trustees is the risk that the City Code or the City's investment policy. The table below identifies the investment will not be able to recover the value of investment securities that are in the types that are authorized for investments held by bond trustees. The table also possession of an outside party. All securities held by bond trustees are in the name identifies certain provisions of these debt agreements that address interest rate of the bond issue in trust for safekeeping with the bond trustee, which is different risk, credit risk, and concentration of credit risk. from the City's primary bank.
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CITY OF ANAHEIM Interest rate risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City Treasurer mitigates this risk by investing in longer-term securities only with funds that are not needed for current cash flow purposes and holding these securities to maturity. The City Treasurer uses the segmented time distribution method to identify and manage interest rate risk. In accordance with the City investment policy, the City Treasurer monitors the segmented time distribution of its investment portfolio and analysis of cash flow demand.
Investments held by bond trustees are typically long-term securities which are not adversely affected by interest rate changes. Guaranteed investment contracts for construction funds are usually limited to three years or less. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity at June 30, 2013:
Credit Rating More (S&P/ FairValue 12 months 13 to 24 25 1o 36 37 to 60 than 60 Investments Moody's) 6/30/2013 or less Months Months Months Months Invesments controlled by CityTreasurer:
U.S. agency securities AA+/Aaa $ 225,890 $ 38,903 $ 43,732 $ 48,242 $ 95,013 Medium - term corporate notes A-/A3 5.219 5,219 Medium - term corporate notes A/A2 11,201 6,232 4,969 Medium - term corporate notes A+/A1 2,950 2,950 Medium - term corporate notes A+/A2 5,888 1,011 4,877 Medium - term corporate notes AA/Aal 4,975 2,003 2,972 Medium - term corporate notes AA/Aa2 3,014 3,014 Medium - term corporate notes AA+/AI 15,421 10,157 5,264 Medium - term corporate notes AA-/Aa3 2,984 2,984 Medium - term corporate notes AAA/Aaa 21.597 3,023 18,574 Commercial paper A-i/P-1 56,717 56,717 Money market mutual funds AAA/Aoa 24,699 24,699 LAIF Unrated 60,256 60,256 Total investments controlled by City Treasurer 440,811 183.598 61,132 85,005 111,076 Investment controlled by bond trustees:
U.S. agency securities AA+/Aaa 126,651 49,190 8,492 27,436 41,533 Guaranteed investment contracts Unrated 40,874 10,135 4,022 $ 26,717 Collaterized investment contracts Unrated 4,880 1,211 3.669 Flexible repurchase agreements Unrated 51,324 10,703 40,621 Money market mutual funds AAA/Aaa 129,726 129.726 LAIF Unrated 45,352 45,352 Total investments controlled by bond trustees 398,807 224,268 38782 45,555 71,007 Total Investments $ 839,618 $ 407.866 8 123,787 5 S 71.007 57
CITY OF ANAHEIM NOTE 4 - ACCOUNTS RECEIVABLE, DUE FROM OTHER GOVERNMENTS, DUE FROM Due from other governments THE SUCCESSOR AGENCY, INTERFUND RECEIVABLE AND PAYABLE BALANCES, AND CERTAIN INTERFUND TRANSACTIONS: Due from other governments for the City's governmental activities at June 30, 2013, are as follows:
Accounts receivable Taxes Grants Other Total Accounts receivable for the City's governmental and business-type activities, Governmental activities:
including the applicable allowance for uncollectible accounts at June 30, 2013, General Fund $ 17,747 $ 178 $ 323 $ 18,248 are as follows:
Housing Authority 18 18 Less: Nonmajor governmental funds 37,770 37,770 Accounts Allowance for Total due from other governments $ 17,747 $ 37,966 $ 323 $ 56,036 Receivable Uncollectibles Total Governmental activities: Revenues are reported net of estimated uncollectible amounts. Total estimated General Fund $ 16,259 $ (3,462) $ 12,797 uncollectible amounts related to revenues of the current period are as follows:
Housing Authority 137 (85) 52 Nonmajor governmental funds 1,261 1,261 Internal service funds 6,595 6,595 General fund $ 827 Total governmental activities 24,252 (3,547) 20,705 Electric Utility 771 Business-type activities: Water Utility 72 Electric Utility 43,586 (366) 43,220 Sanitation 182 Water Utility 7,462 (40) 7,422 Total $ 1,852 Sanitation Utility 7,404 (92) 7,312 Golf Courses 117 117 Convention, Sports and Entertainment Venues 1,571 (24) 1,547 Total business-type activities 60,140 (522) 59,618 Total accounts receivable $ 84,392 $ (4,069) $ 80,323 58
CITY OF ANAHEIM Due from the Successor Agency Interfund receivable and payable balances The amount due from the Successor Agency at June 30, 2013 is $23,509. Due to Net internal balances between governmental activities and business-type the extended period of time over which the receivables are to be collected, the activities of $17,357 are included in the government-wide financial statements at City has recorded deferred inflows of resources equal to the amount due. June 30, 2013.
Interfund receivables and payables that are included in the fund financial
" On April 1, 2003 the City and the former Anaheim Redevelopment Agency entered into a Cooperation Agreement whereby the City will statements at June 30, 2013, are as follows:
assist the Redevelopment Agency with the development of Westgate utilizing $10,000 of funds from the HUD Section 108 loan program. The Interfund Receivable:
amount is due to the City by annual installment through June 2024. At June 30, 2013, the amount due to the City is $7,928. Nonmojor Internal General Housing governmental service
- On June 1, 2010, the City and the former Anaheim Redevelopment Fund Authority funds funds Total Agency entered into a Cooperation Agreement whereby the City will Interfund Payable:
assist the Redevelopment Agency with the rehabilitation of the historic Governmental Funds:
Packing House site utilizing $7,000 of funds from the HUD Section 108 General Fund $ 280 $ 62 $ 342
$15,000 loan proceeds. The amount is due to the City by annual Nonmajor governmental funds $ 728 $ 6,989 7.717 installment through June 2031. At June 30, 2013, the amount due to the Enterprise Funds:
City is $6,349.
Electric Utility 104 104 Golf Courses 2,686 2,686
" In fiscal years 2010 and 2011, the former Anaheim Redevelopment Total $ 3,414 $ 280 $ 6,989 $ 166 $ 10,849 Agency paid a total of $19,163 to the State of California Supplement Educational Revenue Augmentation Fund (SERAF). Of this amount,
$8,500 was paid with funds borrowed from Housing Set-Aside property tax Certain interfund balances at June 30, 2013 are generally short-term loans to Increment. At June 30, 2013, the amount due to the City is $8,176. relieve temporary cash deficits in various funds. The following interfund balance is expected to be repaid in more than one year:
- On February 5, 2013, the City and the Successor Agency entered into a Cooperation Agreement whereby the City will assist the Successor General Fund Agency with loaning the proceeds of one-time allocation of the $1,563 unencumbered low-and moderate income housing fund for various Suc- Of the total interfund receivable in the General Fund, $2,686 is due from cessor Agency projects. At June 30, 2013, the amount due to the City the Golf Courses Fund. On September 24, 2002, the City Council is $776. approved a loan up to $6,400 from the General Fund to the Golf Courses Fund for construction of the Anaheim Hills Golf Clubhouse. The loan is
" On May 14, 2013, the City and the Successor Agency entered into a payable in annual amounts of not less than $548 beginning in July 2005 unti July 2023 and bears interest at the City's investment yield as of June Cooperation Agreement whereby the City will assist the Successor 30th of each year.
Agency by providing a loan up to $1,500 for making homebuyer loans.
At June 30, 2013, the amount due to the City is $280.
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CITY OF ANAHEIM Certain Interfund transactions NOTE 5 - BOND PAYMENT RECEIVABLE:
The net transfers of $12,824 from the business-type activities to the governmental On August 3, 1995, the Los Angeles Rams Football Company, currently the St.
activities on the government-wide Statement of Activities are primarily comprised Louis Rams (Rams), exercised its right to terminate its lease under the Fourth of operational subsidies from business-type activities to the General Fund offset by Amendment to the Exhibition Agreement between the Rams and the City (Rams debt service subsidies to the Convention, Sports and Entertainment Venues Fund Agreement), Under the Rams Agreement, the Rams became obligated to repay and the transfers of capital assets from governmental activities to business-type the City for the debt service on the 1979 Anaheim (California) Stadium Inc. Lease activities. Revenue Bonds in the principal amount of $28,110, which obligation is supported by an irrevocable standby letter of credit with Dresdner Bank AG, will be repaid Capital assets with net book value totaled $1,192 were transferred from the by August 15, 2015. The 1979 Anaheim (California) Stadium Inc. Lease Revenue governmental activities to Business-type activities. This amount was accounted for Bonds were subsequently refunded, and are no longer outstanding, by a portion as Capital Contribution in the Convention, Sports and Entertainment Venues of the Convention, Sports and Entertainment Venues Fund 1993 Refunding Enterprise Fund financial statement. Projects Certificates of Participation. In December 2008, the 1993 Refunding Projects Certificates of Participation were refunded and replaced by the 2008 The following interfund transfers are reflected in the fund financial statements at Lease Revenue Refunding Bonds. At June 30, 2013, there remained principal June 30, 2013: outstanding of $6,545 on the 2008 Lease Revenue Refunding Bonds. During fiscal year 2013, the Rams reimbursed the City $2,444 (representing $2,010 for principal Transfer In: and $434 for interest) for the current portion of their debt service obligation. The Enterprise Funds City accounted for the termination of the lease by recording a bond payment Convention, receivable from the Rams and a contribution to the Convention, Sports and Nonmajor Sports and Entertainment Venues Enterprise Fund in the amount of the debt obligation General Housing governmental Electric Water Entertainment assumed by the Rams under the Rams Agreement.
Fund Authority funds Utility ility Venues Total Transfer Out:
General Fund $ 43,622 $ 14,298 $ 57,920 Nonmajor governmental funds $ 94 $ 151 1,228 1,473 Internal service fund S $ 45 $ 16 61 Electric Utility 22,573 51 22,624 Water Utility 3.263 65 3,328 Sanitation Utility 2.289 2,289 Golf Courses 250 250 Total $28,469 $ 151 $ 44,850 $ 110 $ 16 $ 14,349 $87,945 The Interfund transfers generally are made for the purpose of debt service payments made from a debt service fund but funded from an operating fund or subsidy transfers. Except for the transfers of capital assets detailed previously, there were no other significant transfers during the fiscal year that were either non-routine in nature or inconsistent with the activities of the fund making the transfer.
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CITY OF ANAHEIM NOTE 6 - CAPITAL ASSETS: Depreciation expense was charged to functions/programs of the City during fiscal year 2013 as follows:
Capital asset activities for the year ended June 30, 2013, were as foIlows:
Ending Governmental activities:
Beginning Transfer Balance Additions In (OutI Deletions Balance General government $ 268 Governmental activities: Police 1,286 Nondepreciable assets: 688 (123) $ 648,420 Fire Land $ 606.611 $ 35,816 $ 6,116 $
Construction in progress 89,486 67,000 (16,527) (1,210) 138,749 Community Development 305 Total 696,097 102,816 (10.411) (1,333) 787,169 Planning 109 Depreciable assets: 17,786 Public Works Buildings, structures and improvements 269,555 2,160 3,252 (378) 274.589 Community Services 2,885 Machinery and equipment 104,962 6,393 73 (4,478) 106,950 767,155 Convention, Sports and Entertainment 3,931 Infrastructure 761,001 260 5,894 (4,8561 1.148,694 Capital assets held by the City's internal service funds Total 1,135.518 8.813 9,219 Total assets 1,831,615 111,629 (1,192) (6.189) 1,935,863 are charged to the various functions based on their Less accumulated depreciation tar: usage of the assets 4,479 Buildings, structures and improvements (106,531) (8.023) 122 (114.432) Total depreciation expense - governmental activities $31,737 Machinery and equipment (75,315) (6,882) 4,387 (77.810)
Infrastructure (334,262) (16,832) (351,094)
Business-type activities:
Total accumulated depreciation (516,108) (31,737) 4,509 (543,336) Electric Utility $39,969 Total governmental activities T$735 7 $-79,892 $ 11.192) $ -1.-... $ 1392,527 Water Utility 9,742 capital assets, net Business-type activities: Sanitation Utility 2,297 Nondepreclable assets: Golf Courses 545 Land $ 58,410 $ 58,410 Convention, Sports and Entertainment Venues 13,112 Construction in progress 80,795 $ 90,941 $ (86,800) 84,936 Total 139,205 90,941 (86,800) 143.346 Total depreciation expense - business-type activities $65,665 Depreciable asset Buildings, structures and improvements 599,059 1.398 27,199 $ (211) 627.445 Capital leases Utility plant 1,507,419 1,049 60,036 (3,560) 1,564.944 Machinery and equipment 29,816 1,054 757 (280) 31,347 Included in the capital assets amounts listed above are the following Total 2,136,294 3,501 87,992 (4,051) 2,223,736 capitalized leased assets:
Total assets 2,275,499 94,442 1,192 (4,051) 2,367.082 Governmental Less accumulated depreciation for:
Buildings, structures and Activities Improvements (212,498) (13,609) 92 (226,015) Machinery and equipment $ 4,152 Utility plant (499,046) (49,711) 5,397 (543,360) Less accumulated amortization (2,159)
Machinery and equipment (20,2821 12,345) 278 (22,349)
Total accumulated Capitalized leased assets, net $ 1,993 depreciation 731,826) (65,6651 5,767 (791,724)
Total business-type activities $ I,543,6/3 $-X 28,77 $ =19 $--,716 $1,575,358 capital assets, net 61
CITY OF ANAHEIM Fiduciary Fund NOTE 7 - SELF INSURANCE:
Successor Agency The General Benefits and Insurance Fund, an internal service fund, is used to account for self-funded workers' compensation related benefits, self-funded Capital asset activities for the year ended June 30, 2013 were as follows: general liability claims, commercial insuronce purchases, and alternative risk Beginning Ending financing vehicles; as well as benefit-related costs such as employee Balance Additions Transfers Balance compensated absences, retirement, and health benefits. Revenues of the Nondepreciable assets: General Benefits and Insurance Fund are derived from cost-allocation charges to Land $ 15,568 $ 15,568 City departments using estimates of anticipated risk-transfer costs, new losses, Construction in progress 14,965 $ 4,746 $ (2,740) 16,971 payments on existing claims, and reserve development on known claims for the Total 30,533 4,746 (2,740) 32,539 Insurance portion of the Fund; as well as anticipated benefits earned and Depreciable assets: insurance costs for benefits coverage for the General Benefits portion of the Fund.
Buildings, structures and improvement 43,502 832 2,740 47,074 In addition, the Fund receives interest income from reserves.
Machinery and equipment 265 265 Total 43,767 832 2,740 47,339 At June 30, 2013, the City was fully funded for self-funded retention for workers' Total assets 74,300 5,578 79,878 compensation and general liability claim exposures (with retention levels of $750 Less accumulated depreciation for: per occurrence for workers' compensation claims and $1,000 per occurrence for Buildings, structures and improvem, (609) (1,508) (2,117) general liability claims). Above these retained levels, the City's potential liability is Machinery and equipment (37) (91) (128) covered through various commercial insurance and intergovernmental risk Total accumulated depreciation (646) (1,599) (2,245) pooling programs (collectively, "Insurance"). Settled claims have not exceeded Total capital assets, net $ 73,654 total Insurance in any of the past three years, nor does management believe that
$ 3,979 $ $ 77,633 there are any pending claims that will exceed total Insurance coverage.
Operating leases The unpaid claims liability included in the General Benefits and Insurance Fund is based on the results of actuarial studies and includes amounts for claims incurred-Housina Authority but-not-reported, known-claim development, and allocated loss adjustment expenses. Claims liabilities are calculated using a discount rate of 3% and At June 30, 2013, the Housing Authority earned revenues as the lessor of land, consider the effects of inflation, multi-year loss development trends, and other carried at cost of $52,714 in the government-wide financial statements, under economic and social factors. It is the City's practice to obtain full actuarial studies seven operating ground leases. These leases to developers are noncancelable. annually for its retained levels for general liability and workers' compensation Two of the leases are for a term of 55 years, expiring in 2055 and 2057; three of the coverages. "Premiums" are charged by the General Benefits and Insurance Fund leases are for a term of 57 years, expiring In 2060, 2063 and 2064 and two of the using various allocation methods that include actual costs, trends in claims leases are for a term of 65 years, expiring In 2076. The total base rent amounts to experience, exposure bases, and number of participants.
be collected over the terms of the leases are $12,400, $8,700, $7,505, $7,900,
$5,200, $5,600 and $5,600 respectively, with simple interest accruing on unpaid Changes in claims liability of the General Benefits and Insurance Fund and that portions at a rate of 4.0%, 4.5%, 4.0%, 4.0%, 4.0%, 2% and 2% respectively. relates to the governmental funds and reported in the governmental activities in Minimum lease payments are calculated annually, based on residual receipts, as the government-wide Statement of Net Position in fiscal years 2013 and 2012 defined in the lease agreements. At June 30, 2013, the Housing Authority has were as follows:
recorded notes receivable due from developers related to these transactions of
$11,532 and is net of allowances of $2,120 for uncollected accounts in the government-wide financial statements.
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CITY OF ANAHEIM NOTE 8 - LONG-TERM LIABILITIES:
The following is a summary of changes in long-term liabilities reported in the 2013 2012 government-wide financial statements for the year ended June 30, 2013:
Claims liability at beginning of year $39,343 $35,405 Beginning Additions/ Reductions/ Ending Within Balance Proceeds Payments Balance One Year Current year claims and changes in estimates 7,064 10,281 Governmental activities:
Claims payments (6,985) (6,343)
Bonds payable:
Claims liability at end of year $39,422 $39,343 General obiligation $ 3,185 $ (5801 $ 2,605 $ 610 City lease revenue 468,360 (15,134) 453.226 17.000 Above the retained limit of $750 per occurrence for workers' compensation Accretion 147.294 $ 15,223 162,517 losses, the City purchases excess coverage, utilizing both commercial insurance Unamortized bond premium/discount, net 2,395)_ 133 _2,262) and an intergovernmental risk pooling program (CSAC-EIA), to statutory limits.
Total 616.444 15,223 (15,581) 616,086 17,610 cops:
Above the retained limit of $1,000 per occurrence for liability losses, the City cily cops !1,085 (1,065) 10,020 1,140 maintains excess coverage for all City operations to $140,000 per occurrence, Total 11,085 (1.065) 10,020 1,140 excluding helicopter operations for which the City purchases $50,000, per Capitalized lease obligations:
occurrence, of commercial aviation liability insurance (on a first-dollar basis). The Internal Service Funds 1.694 787 (1,112) 1,369 892 first layer of excess liability loss coverage is procured through the Authority for Total 1,694 787 (t,112) 1,369 892 California Cities Excess Liability (ACCEL). a joint powers insurance authority, Notes and loans payable:
formed in 1986. pooling catastrophic general, automobile, personal injury, and City 23,805 31,500 (2.169) 53,136 3.229 public officials errors and omissions liability losses among twelve California cities, 1.741 Housing Authority 1,741 707 through both risk-sharing and commercial insurance joint-purchase Total 25,546 31.500 (2.1t69 54,877 3.936 arrangements. The City, therefore, continues to maintain some limited excess Claims liaibilities (note 7) 39,343 7.064 (6.985) 39,422 7.916 liability risk sharing exposure, above $1,000 per occurrence, directly with ACCEL.
This pooled coverage has exposure (i) from the run-out periods from prior years in Compensated absences (note 1) 18,353 20.365 (20,496) 18,222 13,737 which commerclal excess insurance was not obtained, and (ii) from an ACCEL Governmental activities total 712.465 74,939 (47,408) 739,996 45,231 retained layer for fiscal year 2013 of $4,000 in excess of $1,000. Each ACCEL Business-type activities:
member's share of pooled losses is based on a retrospectively-rated risk-sharing Bonds payable:
formula which includes, but is not limited to, exposure and loss experience Electric Utility 701.755 92.130 ( 115,205) 678.680 71,795 factors. Water Utility 85,740 (950) 84,790 920 Sanitation Utility 45,295 (880) 44.415 920 In order to provide funds to pay claims, ACCEL collects an annual deposit from Convention, Sports and each member. The deposits are credited with investment income at the rate Entertainment Venues 45.587 (7,756) 37.831 8,120 earned on ACCEL's Investments. At June 30, 2013, ACCEL's cash and investments Unamortized bond totaled $46,863, of which $6,153 consists of deposits and interest on deposits premium/discount, net 11,204 9,254 (2.187) 18,271 provided by the City. The City has no specific equity interest in ACCEL. Deposits Total 889.581 101,384 (126,978) 863.987 81,755 provided to ACCEL by the City are expensed when paid by the General Benefits cops:
and Insurance Fund. Convention. Sports and Entertainment Venues 38,000 38.000 ACCEL is responsible for deciding the risks it will underwrite, the monitoring, and Unamortized COP discount handling of large claims, and arranging excess risk-financing programs. ACCEL Total 38.000 _________ __ 38,000 _ ____
does not have any debt outstanding. For a copy of ACCEL's separate financial Notes and loans payable:
Electric Utility 46,600 46,600 6,600 statements, contact the Finance Director of the City.
Water Utility 9,372 (930) 8,442 956 Convention. Sports and Entertainment Venues 15,280 (5.000) 10,280 5,095 Total 24.652 46,600 15,930) 65,322 12,651 Decommissioning provision 130,945 388 131,333 Business-type activities total 1,083.178 148.372 (132.908) 1.098.642 94,406 Government-wide total _LZ 3.3,1 1 10.3161 $ 1.838.638 19.637 63
CITY OF ANAHEIM GOVERNMENTAL ACTIVITIES:
BONDS PAYABLE Fiscal Year Endina 6/30 Principal Interest Total 2014 $ 610 92 $ 702 At June 30, 2013, bonds payable consisted of the following:
2015 635 67 702 2016 660 $ 41 701 Range of Authorized Out- 2017 700 14 714 Date Final Interest Rates and standing Total $ 2,605 214 $ 2,819 Issued Maturity at Issue Date Issued 6/30/2013 City 1993 General Obligation Refunding Bonds 11/01/93 10/01/16 4.0%-7.0% $ 10,055 $ 2,605 1997 Anaheim Lease Lease oavment measurement revenues Revenue Bonds 02/01/97 03/01/37 4.5%-6.0% 510,427 200,543 Accretion 162,517 In February 1997, the Anaheim Public Financing Authority sold $510,427 of lease 2007 Anaheim Lease Revenue revenue bonds to construct public improvements in The Anaheim Resort. In June Refunding Bonds 06/13/07 03/01/37 3.25%-5.5% 256,320 249,200 2007, the Authority sold $256,320 of lease revenue bonds to defease $248,335 of 2008 Anaheim Lease Revenue 3,483 the 1997 lease revenue bonds. The bonds are special obligations of the Authority Refunding Bonds 12/10/08 08/01/19 3.0%-5.0% 5,084 Total 618,348 payable solely from lease payments to be made by the City to the Authority for Unamortized bond the use and occupancy of the leased premises. Debt service requirements to refunding maturity for these lease revenue bonds are paid from lease payment costs/premium/discounts, measurement revenues (LPMR) defined as amounts equal to: 1) 3% of the 15%
net (2,262) transient occupancy taxes (TOT) (i.e. 20% of the total transient occupancy taxes)
Total governmental activities bonds $ 616,086 for all hotel properties in the City, excluding Disney properties, and 2) 100% of the incremental TOT, sales, and property tax revenues from all Disney properties over the 1995 base, adjusted each year by the CPI change, with a minimum 2%
increase annually. The City is not required to pay any additional sums should the Bonds Payable - City LPMR fall short of the amount required to pay debt service on the bonds. The Walt Disney Company provided a guarantee to the bond insurer to enable the issuer Generalobliaation refundina bonds to obtain municipal bond insurance.
The 1993 General Obligation Refunding Bonds were issued to finance storm drain LPMR began on January 1, 2001, with the first payment made to the trustee on Improvements and are payable from the levy of ad valorem taxes. Total principal July 7, 2001, for the LPMR generated during the period January through June and interest remaining on the bonds is $2,819, payable through October 2016. 2001. Subsequent to that date, LPMR is collected and remitted to the trustee During the fiscal year ended June 30, 2013, total principal and interest paid was monthly. During the fiscal year ended June 30, 2013, $39,804 was remitted to the
$698. trustee.
Debt service requirements to maturity for the 1993 General Obligation Refunding Debt service requirements to maturity for the 1997 Anaheim Lease Revenue Bonds to be paid by the General Obligation Bonds Debt Service Fund from future Bonds and the 2007 Anaheim Lease Revenue Refunding Bonds to be paid by the property tax revenues are as follows: Anaheim Resort Improvements Debt Service Fund from future LPMR are as follows:
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CITY OF ANAHEIM Fiscal Year Ending 6/30 Principal Interest Total CERTIFICATES OF PARTICIPATION 2014 $ 16,540 $ 16,917 $ 33,457 2015 18,510 15,894 34,404 At June 30, 2013, certificates of participation consisted of the following:
2016 20,630 14,751 35,381 Range of Authorized Out-2017 22,900 13,479 36,379 Date Final Interest Rates and standing 2018 11,667 26,332 37,999 Issued Maturity at Issue Date Issued 6/30/2013 2019-2023 66,086 142,382 208,468 2024-2028 80,633 160,653 241,286 City 1993 Arena Land 2029-2033 96,466 181,723 278,189 Refinancing 11/01/93 11/01/19 5.9%-7.50% 21,210 $ 10,020 2034-2037 116,311 176,254 292,565 Total governmental activities COPs $ 10,020 Total 449,743 748,385 1,198,128 Unamortized bond discount (2,298) (2,298)
$ 748,385 $ 1,195,830 Certificates of Participation Payable - City Total bonds $ 447,445 Certificates of participation debt service payments are to be paid from Included in interest is $162,517 related to accretion on capital appreciation bonds. unrestricted revenues of the Certificates of Participation Debt Service Fund. COP debt service requirements to maturity are as follows:
Lease revenue refundina bonds - City Fiscal Year Ending 6/30 Principal Interest Total 2014 $ 1,140 $ 614 $ 1,754 Debt service requirements to maturity for the City's lease revenue bonds to be 2015 1,225 537 1,762 paid from unrestricted revenues of the Municipal Facilities Debt Service Fund are 2016 1,315 455 1,770 as follows: 2017 1,415 366 1,781 2018 1,530 270 1,800 Fiscal Year Ending 6/30 Principal Interest Total 2019-2020 3,395 225 3,620 2014 $ 460 $ 151 $ 611 Total COPs $ 10,020 $ 2,467 $ 12,487 2015 479 131 610 2016 506 111 617 2017 463 89 552 2018 501 66 567 2019-2020 1,074 55 1,129 Total 3,483 603 4,086 Unamortized bond premium 36 36
$ 3,519 $ 603 $ 4,122 65
CITY OF ANAHEIM CAPITAL LEASE OBLIGATIONS The City has a long-term noncancelable agreement with HP Financial Services to Fiscal Year Ending 6/30 Principal Interest Total finance the acquisition of the City's server, desktop, and portable computer 2014 $ 478 $ 427 $ 905 equipment. The agreement qualifies as a capital lease for accounting purposes 2015 517 402 919 as defined under the FASB Statement No. 13, Accounting for Leases, and 2016 561 374 935 therefore has been recorded at the present value of future minimum lease 2017 670 342 1,012 payments at the date of inception of the lease. Future minimum lease payments 2018 685 305 990 to be made from unrestricted revenues of the Information Services Internal 2019-2023 4,238 864 5,102 Service Fund under the capital lease are as follows: 2024-2028 730 22 752 Total notes and loans $ 7,879 $ 2,736 $ 10,615 Fiscal Year Endingi 6/30 In March 2010, the City entered into an agreement with HUD, making available 2014 $ 968 $15,000 to fund the acquisitions of the Anaheim Family Justice Center and 2015 337 Miraloma Park site, construction of the Thornton Brady storm drain and the 2016 163 rehabilitation of the historic Packing House site. The loan is payable from the 2017 17 Community Development Block Grant yearly entitlement and from the receipts of the Successor Agency receivable. The outstanding balance of the loan at June Total 1,485 30, 2013, was $13,445. The loan bears interest ranging from 1.74% to 3.97% and is Less amount representing interest, variable (116) payable over 20 years beginning on February 1, 2011 through August 1, 2030.
Present value of future minimum lease payments $ 1,369 Loan debt service requirements to maturity are as follows:
NOTES AND LOANS PAYABLE Fiscal Year Ending 6/30 Principal Interest Total At June 30, 2013, notes and loans payable are as follows: 2014 $ 615 $ 471 $ 1,086 2015 625 462 1,087 2016 640 449 1,089 Notes and Loans Payable - City 2017 655 433 1,088 2018 670 415 1,085 HUD Section 108 aucuranteed loans pavable 2019-2023 3,665 1,727 5,392 In May 2003, the City entered into an agreement wilh HUD, making available 2024-2028 4,335 959 5,294
$10,000 to provide financial assistance related to the development of Westgate 2029-2031 2,240 117 2,357 on a former landfill site located at the northeast corner of Beach Boulevard and Total notes and loans $13,445 $ 5,033 $18,478 Lincoln Avenue. The loan is payable from sales tax revenue generated by Westgate, from The Community Development Block Grant yearly entitlement, and from receipts of the Successor Agency receivable. The outstanding balance at June 30, 2013 was $7,879. The loan bears interest ranging from 1.74% to 5.97%
and is payable over 20 years beginning on February 1, 2005, until August 1, 2023.
Loan debt service requirements to maturity are as follows:
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CITY OF ANAHEIM Helicopter loan oavable In January 2009, the City entered into an agreement with Government Capital Fiscal Year Endingq 6/30 Principal Interest Total Corporation to finance the acquisition of a police helicopter. The amount of the 2014 $ 2,000 $ 2,000 loan totaled $1,799 and bears interest at 5.391% per annum for a term of 12 years. 2015 2,500 2,500 On January 29, 2009, Government Capital Corporation assigned this agreement 2016 3,000 3,000 to Bank of America which subsequently assigned it to Western Alliance Equipment Finance on March 21, 2012. Principal and interest payments of $206 2017 3,000 3,000 are due annually beginning on December 16, 2009, until December 16, 2020. The 2018 3,500 3,500 outstanding balance at June 30, 2013 was $1,312. Loan debt service 2019-2023 16,500 16,500 requirements to maturity are as follows: 2024-2025 $ 3,765 3,765 Total notes and loans $30,500 $ 3,765 $34,265 Fiscal Year Endina 6/30 Principal Interest Total 2014 $ 136 $ 70 $ 206 2015 143 63 206 Notes and Loans Payable - HousIng Authority 2016 150 56 206 2017 158 48 206 Housina Authority CHFA loan agreements 2018 167 39 206 2019-2021 558 62 620 In October 2003 and October 2007, the Housing Authority entered into separate Total notes and loans $ 1,312 $ 338 $ 1,650 loan agreements with the California Housing Finance Agency (CHFA), to provide funding for down payment assistance to first-time homebuyers. The 2003 loon is for an amount up to $1,800 and bears 3% simple interest, with principal and Anaheim Reaional Transportation Intermodal Center (ARTICI Land Acauisition accrued interest due in October 2013. At June 30, 2013, the outstanding balance Loan pavable of the 2003 loan was $707. The 2007 note is for an amount up to $1,250 and bears 3.5% interest with principal and accrued interest due in October 2017. At June 30, In July 2012, the City entered into an agreement with the Orange County 2013, the outstanding balance of the 2007 loan was $1,034.
Transportation Authority (OCTA) for the Purchase and Sale of a 13.58 acres real property located at 1750 South Douglass Road in Anaheim. The purchase price for the site is $32,500. The City paid $1,000 at the close of escrow and the remaining $31,500 will be payable to OCTA over 13 years and bears 2% simple interest per annum. Annual principal payments are due on or before July 101h each year commencing 2012. The payment of accrued interest is deferred until equal payments of $1,883 are due and payable on or before July 10, 2024 and July 10, 2025. The loan is payable with Measure M2 Local Fair Share funds. OCTA will retain payments from Anaheim's "Local Fair Share" funds allocated by OCTA under Measure M2 each year until the final payment is made on July 10, 2025.
The City may elect to provide alternative funding from other City funds for transportation related purposes, such as gas tax funds. At June 30, 2013, the outstanding balance of the ARTIC loan was $30,500. Loan debt service requirements to maturity are as follows:
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CITY OF ANAHEIM BUSINESS-TYPE ACTIVITIES:
Bonds Payable - Electric Utility BONDS PAYABLE The City's Electric Utility has pledged future electric revenues, net of certain costs, Range of Authorized to repay a total of $1,093,145 outstanding long-term obligations, principal and Date Final Interest Rates and Outstanding interest. Proceeds from bonds provided financing for various capital Issued Maturity at Issue Date Issued 6/30/2013 improvements, primarily distribution assets, The Electric Utility's bonds are payable Electric Utility solely from electric customer net revenues and are payable through 2040. At 1999 Revenue Bonds 09/01/99 10/01/27 3.0%-5.0% $ 45,000 $ 32,315 June 30, 2013, the annual principal and interest payments on the bonds were 2002 Revenue Bonds 02/15/02 10/01/31 3.3%-5.25% 178,705 60,205 47.9% of net revenues. Principal and interest paid for the current fiscal year and 2003 Revenue Bonds 04/01/03 10/01/22 3.0%-5.0% 60,415 27725 total net revenues were $52,331 and $109,183 respectively.
2004 Revenue Bonds 06/01/04 10/01/34 2.5%-5.25% 131,265 111,270 Bond debt service requirements to maturity for the Electric Utility to be paid from 2007 Revenue Bonds 02/01/07 10/01/37 4.0%-5.0% 206,035 198.065 revenues are as follows:
2009 Revenue Bonds 03/10/09 10/01/39 3.0%-5.25% 70,000 66,580 2011 Revenue Bonds 05/11/11 10/01/36 3.0%-5.375% 90,390 90.390 Fiscal Year Ending 6/30 Principal Interset Total 2012 Revenue Bonds 09/19/12 10/01/31 3.125%-5% 92,130 92,130 Total 2014 $ 71,795 $ 30,038 $ 101,833 678,680 Unamortized bond premiums/discounts, net 16,390 2015 12,155 28,633 40,788 Total Electric Utility 695,070 2016 12,690 28,078 40,768 2017 15,115 27,438 42,553 Water Utility 2018 15,810 26,735 42,545 2004 Revenue Bonds 05/01/04 10/01/16 4.07-4.5% 12,105 1,685 2019-2023 107,630 119,491 227,121 2008 Revenue Bonds 07/09/08 10/01/38 4.0%-5.0% 48,580 48,580 2024-2027 145,455 87,559 233,014 2010 Revenue Bonds 10/28/10 10/01/40 2.0%-4.75% 34,525 34,525 2028-2033 167,995 49,970 217,965 Total 84,790 2033-2038 121,405 16,064 137,469 Unamortized bond premiums/discounts, net 464 2039-2040 8,630 459 9,089 Total Water Utility 85,254 Total 678,680 414,465 1,093,145 Sanitation Utility Unamortized bond 2007 Revenue Bonds 05/23/07 02/01/39 3.9%-5.0% 47.710 44,415 premiums/discounts, net 16,390 16,390 Unamortized bond premium 1,080 Total bonds $ 695,070 $ 414,465 $ 1,109.535 Total Sanitation 45,495 Convention, Sports and Entertainment Venues Bonds Payable - Water Utility 2002 Revenue Bonds 07/02/02 08/01/23 3.0%-5.5% 26,260 5,390 2008 Anaheim Lease Revenue The City's Water Utility has pledged future revenues from the sale of water, net of Refunding Bonds 12/10/08 08/01/19 3.0%-5.0% 45,847 32,441 certain costs, to repay a total of $163,443 for outstanding long-term obligations, Total 37,831 principal and interest. Proceeds from bonds provided financing for various capital Unamortized bond premiums/discounts, net 337 improvements, primarily distribution assets. The bonds are payable solely from water net revenues and are payable through 2041. At June 30, 2013, the annual Total Convention, Sports and Entertainment Venues 38,168 principal and interest payments on the bonds were less than 29.1% of net Total business-type activities bonds $ 1,088,967 $ 863,987 revenues, Principal and interest paid for current fiscal year and total net revenues were $5,205 and $17,867 respectively.
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CITY OF ANAHEIM Bond debt service requirements to maturity for the Water Utility to be paid from Fiscal Year Ending 6/30 Principal Interest Total revenues are as follows: 2014 $ 920 $ 2,079 $ 2,999 2015 955 2,042 2,997 Fiscal Year Ending 6/30 Principal Interest Total 2016 1,005 1,994 2,999 2014 $ 920 $ 4,217 $ 5,137 2017 1,045 1,954 2,999 2015 960 4,177 5,137 2018 1,095 1,902 2,997 2016 1,000 4,135 5,135 2019-2023 6,265 14,983 8,718 2017 10,45 4,092 5,137 2024-2028 7,900 7,082 14,982 2018 1,090 4,049 5,139 2029-2033 9,895 5,096 14,991 2019-2023 8,010 19,456 27,466 2034-2038 12,475 2,512 14,987 2024-2028 14,560 16,799 31,359 2039 2,860 136 2,996 2029-2033 18,140 12,760 30,900 Total 44,415 33,515 77,930 2034-2038 22,760 7,566 30,326 Unamortized bond premium 1,080 1,080 2039-2041 16,305 1,402 17,707 Total bonds $ 45,495 $ 33,515 $ 79,010 Total 84,790 78,653 163,443 Unamortiized bond premiums/discount, net 464 464 Total bonds $ 85,254 $ 78,653 $ 163,907 Bonds Payable - Convention, Sports and Entertainment Venues Bond debt service requirements to maturity for the Convention, Sports and Bonds Payable - Sanitation Utility Entertainment Venues to be paid from revenues are as follows:
The City's Sanitation Utility has pledged future sanitation system net revenues to Fiscal Year Ending 6/30 Principal Interest Total pay a total of $77,930 for revenue bonds issued in May 2007. Proceeds from the 2014 $ 8,120 $ 1,579 $ 9,699 bonds provided financing for capital improvements to the sanitation sewer 2015 4,995 1,280 6,275 collection system. The bonds are payable solely from system net revenues and 2016 4,424 1,091 5,515 are payable through February 2039. At June 30, 2013, total principal and interest 2017 4,662 887 5,549 payments on the bonds were less than 45.2% of net revenues. Total principal and 2018 4,879 653 5,532 interest paid and total system net revenues for the current fiscal year were $2,998 2019-2023 10,661 576 11,237 and $6,629 respectively.
2024 90 2 92 Bond debt service requirements to maturity for the Sanitation Utility to be paid Total 37,831 6,068 43,899 from revenues are as follows: Unamortized bond premium/discounts, net 337 337 Total bonds $ 38,168 $ 6,068 $ 44,236 69
CITY OF ANAHEIM CERTIFICATES OF PARTICIPATION State of California Revolvina Fund note pavable Range of Authorized Date Final Interest Rates and Outstanding In June 2001, the Water Utility executed a note payable to the State of California Issued Maturity at Issue Dote Issued 6/30/13 Revolving Fund at a rate of 2.8% in the amount of $18,063. There are semi-annual payments of principal and interest in the amount of $592 through July 31, 2021.
Convention, Sports and Entertainment Venues The outstanding balance on this note at June 30, 2013, totaled $8,442.
1992 Convention Center Financing Project 01/01/92 08/01/23 3.9%- 6.4% $ 92,777 $ 38,000 Note debt service requirements to maturity for the Water Utility are as follows:
Total Convention. Sports and Entertainment Venues $ 38,000 Fiscal Year Endina 6/30 Principal Interest Total Certificates of Participation Payable - Convention, Sports and Entertainment 2014 $ 956 $ 229 $ 1,185 Venues 2015 982 203 1,185 2016 1,010 175 1,185 Certificates of participation debt service requirements to maturity for the Convention, Sports and Entertainment Venues Fund to be paid from unrestricted 2017 1,039 146 1,185 revenues are as follows: 2018 1,068 117 1,185 2019-2022 3,387 168 3,555 Fiscal Year Ending 6/30 Principal Interest Total Total notes and loans $ 8,442 $ 1,038 $ 9,480 2014 $ 2,350 $ 2,350 2015 $ 3,500 2,345 5,845 Note Payable - Convention, Sports and Entertainment Venues 2016 4,500 1,895 6,395 2017 4,800 1,601 6,401 Wells Farao Bank lease revenue note 2018 5,100 1,288 6,388 2019-2023 19,100 1,998 21,098 In December 2010, the City executed a lease revenue note with the Wells Fargo 2024 1,000 4 1,004 Bank, National Association to provide financing for the capital improvements of Total COPs $ 38,000 $ 11,481 $ 49,481 the Anaheim Convention Center Grand Plaza. Principal amount of the note is
$20,000 and bears a 1.85% interest per annum. The note is payable monthly, commencing in January 2011 and matures in December 2014.
NOTES AND LOANS PAYABLE Note debt service requirements to maturity to be paid from the unrestricted revenues of the Convention, Sports and Entertainment Venues Fund are as Note Payable - Electric Utility follows:
On March 1, 2013, the Public Utility Department entered into a Revolving Credit Fiscal Year Ending 6/30 Principal Interest Total Agreement with Wells Fargo Bank, National Association at a maximum note 2014 $ 5,095 $ 143 $ 5,238 amount not to exceed $100,000, of which $86,000 is made available for Electric 2015 5,185 48 5,233 Utility and $14,000 for Water Utility. The note has a three year term at a variable Total notes $ 10,280 $ 191 $ 10,471 interest rate based on LIBOR Daily Index Rate and a spread. The annual commitment fee is based on 0.175% on the total note amount of $100,000. The Electric Utility pays interest due on the note monthly. ARBITRAGE At June 30, 2013, the Electric Utility has drawn $46,600 from this note to provide The Tax Reform Act of 1986 (Act) substantially revised the treatment to be financing for the followings: 1) $44,000 Electric System Tax-Exempt Note to retire afforded to earnings on the proceeds of tax-exempt debt, and now requires the the 2002-B Electric Revenue Bonds; and 2) $2,600 Electric System Taxable Note to City to calculate and remit rebatable arbitrage earnings to the Internal Revenue pay Cap and Trade Program draw. Service. Certain of the City's debt and interest earned on the proceeds thereof are subject to the requirements of the Act. The City has accrued a liability for Note Payable - Water Utility At June 30, 2013, note payable is as follows: 70
CITY OF ANAHEIM estimated rebatable arbitrage earnings and has set aside such earnings as CONDUIT FINANCINGS restricted cash. At June 30, 2013, the arbitrage rebate liability for governmental and business-type activities was zero and $167 respectively. city COMPLIANCE WITH DEBT COVENANTS The City has entered into two conduit financings on behalf of a community core provider facility and one to facilitate the management agreement for the Honda There are various limitations and restrictions contained in the City's bond and Center (formerly the Arrowhead Pond) of Anaheim. In accordance with certificates of participation indentures. The City believes they are in compliance applicable agreements, the City has no obligation for debt service payments with all significant limitations and restrictions. and therefore, the debt is not reflected in the accompanying basic financial statements. Bonds payable and certificates of participation related to conduit DEBT ISSUANCES financings outstanding at June 30, 2013, were as follows:
City - Debt Issuance Date Final Amount Outstanding Issued Maturity Issued 6/30/2013 In July 2012, the City entered into a purchase and sale agreement with OCTA for 1985 West Anaheim the acquisition of a real property parcel located in Anaheim for $32,500. The City Convalescent Home 12/30/85 12/01/15 $ 3,204 $ 945 paid $1,000 at the close of the escrow; the remaining balance of $31,500 will be 1993 Anaheim Memorial payable to OCTA over 13 years at 2% simple interest per annum. Total debt Hospital Association 10/15/93 05/15/20 46,690 19,075 service payment over the life of the loan until fiscal year 2025 will be $34,265.
2003 Anaheim Arena Electric Utility - Debt Refunding Financing Project 12/11/03 06/01/23 42,600 31,500 Total $ 92,494 $ 51,520 On September 19, 2012, the Electric Utility issued 2012-A Electric Revenue Refunding Bonds in the principal amount of $92,130 at a premium of $9,254. The proceeds totaled $101,384 together with balances of the 2002-A Electric Revenue Anaheim Housing Authority Bond Reserve fund of $6,047 and Bond Debt Service fund of $2,003 were deposited in escrow funds to refund the outstanding balance of $96,210 on the 2002-A Electric The Anaheim Housing Authority has entered into conduit debt financings on Revenue Bonds and to fund the 2012-A Electric Revenue Bonds required reserve behalf of various developers to assist with the acquisition, construction, fund of $10,102. The true interest cost is 3.38% maturing serially from October 1, equipping, rehabilitation and refinancing of multifamily residential rental projects 2021 to 2023. The total debt service payments over the life of the bonds until fiscal within the City of Anaheim. In accordance with the bond documents, neither the year 2032 will be $153,817, The Electric Utility obtained an economic gain of City nor the Housing Authority has an obligation for debt service payments and
$17,815. therefore, the debt is not reflected in the accompanying basic financial statements. Housing Authority revenue bonds related to conduit financings Public Utility Department - Revolving Credit Agreement outstanding at June 30, 2013, were as follows:
On March 1, 2013, the Public Utility Department entered into a Revolving Credit Agreement with Wells Fargo Bank, National Association for a note amount not to exceed $100,000 of which $86,000 is made available for the Electric Utility and
$14,000 for the Water Utility. This note has a three year term at a variable interest rate based on LIBOR Daily Index Rate plus 0.65% on any outstanding balance and 0.175%
on the total credit line of $100,000. At June 30, 2013, the Electric Utility has utilized
$46,600.
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CITY OF ANAHEIM Date Final Amount Outstanding Bonds Payable Issued Maturity Issued 6/30/2013 12/01/85 12/01/15 $ 4,664 $ 1379 2007 Tax Allocation Refundina Bonds 1985 West Anaheim Royale 1992 Heritage Village 07/15/03 07/15/33 8,485 5,485 The Successor Agency will repay a total of $333,724, principal and interest, for the 1997 Casa Granada Apartments 05/15/97 05/15/27 3,795 2,895 outstanding 2007 tax allocation bonds issued in December 2007 from the semi-1997 Port Trinidad Apartmetns 05/15/27 2,140 1,640 annual Redevelopment Property Tax Trust Fund (RP1TF) revenue allocations.
1998 Sage Park Project 11/01/28 5,500 5,500 Proceeds from the bonds provided financing for public improvements related to the merged project areas, for the supply of low-and moderate-income housing 2000 Cobblestone Apartments 03/15/33 3,980 3,580 within the City, to repay certain Redevelopment Agency loan obligations and to 2000 Pork Vista Apartments 07/01/33 27,180 27,180 advance refund the 1992, 1997 and 2000 bonds. The bonds bear interest at rates 2000 Seawinds Apartment 07/15/33 7,000 6,300 ranging from 4.25% to 6.50% and are payable through February 2031. During the 2001 Solara Court Apartments 12/01/34 8,200 5,522 fiscal year ended June 30, 2013, total interest paid was $10,766, 2008 Bel Age Manor Apartments 02/01/44 22,350 21,139 Debt service requirements to maturity for 2007 Tax Allocation bonds are as 2009 Lincoln Anaheim Apartments Phase 04/15/39 23,217 8,878 follows:
2012 Anton Monaco Apartments 12/14/12 01/01/46 35,460 12,082 2012 Crossings at Cherry Orchard Fiscal Year Ending 6/30 Principal Interest Total Apartments Tranche A 08/23/12 12/01/44 9,365 4,010 2014 $ 1,860 $ 10,766 $ 12,626 2015 2,205 10,659 12,864 2012 Crossings at Cherry Orchard 2016 3,280 10,532 13,812 Apartments Tranche B 08/23/12 12/01/29 2,985 2,985 2017 5,565 10.350 15,915 2013 Paseo Village Apartments 02/28/13 09/01/45 19,750 12,185 2018 7,955 10,053 18,008 Total $ 184,071 $ 120,760 2019-2023 46,495 43,462 89,957 2024-2028 71,710 29,375 101,085 FIDUCIARY FUNDS 2029-2031 62,610 6,847 69,457 Total 201,680 132,044 333,724 Unamortized bond premium/discounts, net 3,028 3,028 The following Is a summary of changes in long-term liabilities for the year ended Total bonds $ 204,708 $ 132.044 $ 336,752 June 30, 2013:
Within Beginning Additions/ Reductions/ Ending One 2010 Recovery Zone Economic Development Bonds Balance Proceeds Payments Balance Year The Successor Agency will repay a total of $10,397, principal and interest, Bonds payable $ 207,990 $ (210) $ 207,780 $2,075 outstanding Recovery Zone Economics Development Bonds issued in October premium/(discount), net 3,284 (256) 3,028 2010 from the semi-annual RPITF revenue allocations. Proceeds from the bonds Notes and loans payable 7,666 (5331 7,133 301 806 provided financing for public improvements related to the merged project areas.
Due to City of Anaheim 22,980 $ 234 (761) 22,453 Pollution remediation liability 6.640 5 (4,434) 2,211 2,210 The bonds bear interest at rates ranging from 1.44% to 6.22% and are payable
$ 248,560 $ 239 $ (6,194) $ 242,605 $5,392 through February 2031. During the fiscal year ended June 30, 2013, total principal and interest paid were $210 and $367 respectively.
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CITY OF ANAHEIM Debt service requirements to maturity for 2010 Recovery Zone Development bonds are as follows:
Fiscal Year Ending 6/30 Principal Interest Total Debt service requirements to maturity for the Successor Agency notes payable 2014 $ 215 $ 361 $ 576 and contractual commitments to be paid from future RPTTF revenues are as follows:
2015 225 354 579 2016 230 346 576 Fiscal Year Ending 6/30 Principal Interest Total 2014 $ 301 $ 601 $ 902 2017 240 337 577 2015 332 590 922 2018 250 326 576 2016 365 578 943 2019-2023 1,470 1,422 2,892 2017 402 563 965 2024-2028 1,955 933 2,888 2018 442 546 988 2029-2031 1,515 218 1,733 2019-2023 2,584 2,211 4,795 Total bonds $ 6,100 $ 4,297 $ 10,397 2024-2028 48 2,148 2,196 2029-2032 2,659 763 3,422 Notes and Loans Payable Total notes and loans $ 7,133 $ 15,133
$ 8,000 Savi Ranch Associates note oayable Due to the City of Anaheim In July 1989, the former Redevelopment Agency executed a note with Savi Ranch Associates, a California general partnership. The amount of the note The Successor Agency will repay a total of $10,615 outstanding long-term totaled $2,707 and bears interest at 9.5% per annum. The note is payable from obligations, principal and interest, from the semi-annual RPTTF revenue allocations net property tax increment as defined in the Redevelopment Agency note. If for the $10,000 Cooperation Agreement dated April 1, 2003, between the former there is insufficient RPTTF revenue to pay for principal and interest at the Redevelopment Agency and the City, whereby the City assisted the former termination of the River Valley project area plan in November 2031, the note Agency with the development of the Anaheim Westgate Center (Westgate ceases to be an obligation of the Successor Agency. For the fiscal year ended project) utilizing $10,000 of funds from the HUD Section 108 loan. This Cooperation June 30, 2013, total interest paid was $299. Agreement obligation (HUD Section 108 loan) bears interest ranging from 1.74% to 5.97% and is payable semi-annually through August 2023. At June 30, 2013, Contractual obliaations outstanding principal due to the City for the Westgate project obligation was
$7,928. Principal and interest paid for the current fiscal year were $884.
As part of Ihe Redevelopment Agency's economic development program to The Successor Agency will repay a total of $8,655 I outstanding long-term attract and retain businesses in the City, the former Redevelopment Agency has obligations, principal and interest, from the semi-annual RPTTF revenue allocations entered into various contractual obligations to reimburse tenant improvement for the $7,000 Cooperation Agreement dated June 2010 between the former costs to be paid from property tax increment revenues (thereafter RPTTF). At June Redevelopment Agency and the City, whereby the City assisted the former 30, 2013, the outstanding balance of these obligations totaled $140.
Redevelopment Agency with the rehabilitation of the historic Packing House site utilizing proceeds from the HUD Section 108 loan. This Cooperation Agreement In December 1992, the former Redevelopment Agency has entered into an obligation (HUD 108 Section loan) bears interest ranging from 1.68% to 3.98% and agreement with California State Teachers Retirement System (CALSTRS), to share is payable over 20 years beginning on February 1, 2011 through August 1, 2030.
in the development costs of the Plaza Redevelopment Project. In March 2004, As of June 2013, the outstanding principal due to the City for the Packing House CALSTRS assigned the agreement to the new owners, Pan Pacific Retail site project obligation was $6,349. Principal and interest paid for the current fiscal Properties, Inc. (PPRP). In October 2006, Kimco Realty Corporation (KRC) acquired year were $548.
PPRP including the assumption of the assigned plaza project agreement. The KRC participation note bears 7% simple interest rate, and has a maximum term of 25 The former Redevelopment Agency paid a total of $19,163 to the State of years. The Successor Agency's obligation to repay the note is entirely contingent California Supplemental Education Revenue Augmentation Fund (SERAF) in fiscal on the revenues generated by the project. The note will be forgiven at the end of years 2010 and 2011. Of this amount, $8,500 was borrowed from the housing the term whether or not the entire amount has been repaid. At June 30, 2013, the fund. The Successor Agency will repay this amount from future RPITF revenue outstanding balance of the participation note was $4,286. allocations. At June 30, 2013, the outstanding balance is $8,176.
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CITY OF ANAHEIM Anaheim. At June 30, 2013, the 2007 Mello-Roos bonds outstanding amounted to Westgate Pollution Remediation Obligation $8,250.
In June 2003, the former Redevelopment Agency acquired property located at In August 2010, the City issued $28,630 in special tax bonds, Series 2010 to finance 2951 West Lincoln Avenue as a part of a redevelopment project named the a portion of the cost of acquisition and construction of facilities In the Platinum Westgate project. Approximately 11 acres of the property were formerly known Triangle of Anaheim, Community Facility District 08-1 and to fund a reserve fund as the Sparks and Rains Landfills. The County of Orange was the operator of for the Series 2010 Bonds. At June 30, 2013, the 2010 Mello-Roos bonds these landfills until 1960. In November 2008, the County paid the Redevelopment outstanding amounted to $27,095.
Agency $5,176 in settlement of claims related to the pollution remediation for the Westgate project site prior to the development of a shopping center. The total NOTE 9- SEGMENT INFORMATION:
costs of the pollution remediation work amounted to $12,420 based on actual contract received for the project. At June 30, 2013, the outstanding pollution The Sanitation Utility Fund issued revenue bonds to finance sewer system remediation obligation for the Westgate project was $2,211. expansion and improvements. The Sanitation Utility Fund accounts for three activities: solid waste collection, wastewater, and street cleaning. However, investors in the revenue bonds rely solely on revenue generated through Mello-Roos Community Facilities Districts wastewater activities for repayment. Summary financial information for wastewater activities is presented below:
The City issued special tax bonds to finance construction in various Community Facilities Districts. These bonds were authorized pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds are payable from a special assessment tax and are non-recourse bonds secured by the properties. Neither Condensed Statement of Net Position the faith and credit nor the taxing power of the City, the State of California or any Assets political subdivision of either of the foregoing is pledged to the payment of the Cash and cash equivalents $ 7,854 bonds. The bonds are not general or special obligations of the City, nor do they Investments 12,212 contain any credit enhancements that secondarily pledge existing or future Other current assets 1,567 resources of the City, accordingly they are not reflected in the accompanying Restricted cash and cash equivalents 19,416 basic financial statements. The City is acting as agent only for the property Capital assets, net 94.779 owners in collecting the special assessments and forwarding the collections to the Total assets 135,828 fiscal agent. This activity is recorded in an agency fund in the basic financial Liabilities statements. Current liabilities 1,031 Current liabilities payable from restricted assets 2,302 At June 30, 2013, the City has the following outstanding Mello-Roos special tax Noncurrent liabilities 44,575 bonds: Total liabilities 47,908 Net Position In June 1989, the City issued $26,620 in special tax bonds to finance a portion of Net investment in capital assets 56,865 the cost of acquisition and construction of facilities in East Anaheim Hills. In April Restricted for debt services 384 1995, $15,389 of the 1989 bonds was advance refunded through the Anaheim Restricted for capital projects 9,829 Public Financing Authority and in June 2004, $11,160 of the 1995 bonds was Unrestricted 20,842 refunded through the Authority. In December 1999, $7,720 of the 1989 bonds was Total net position 87,920 refunded by the City. At June 30, 2013, the 2004 Anaheim Public Financing Authority bonds outstanding amounted to $2,655, and the 1999 Mello-Roos bonds outstanding amounted to $1,530.
In February 2007, the City issued $9,060 in special tax bonds to finance a portion of the cost of acquisition and construction of facilities in the Platinum Triangle of 74
CITY OF ANAHEIM Condensed Statement of Revenues, Expenses and Changes In Net Position NOTE 10 - RETIREMENT PLANS:
Waste water fees (pledged against bonds) $ 11,894 29 Retirement System Other revenues Depreciation and amortization (1,829)
The City contributes to the California Public Employees' Retirement System (PERS),
Other operating expenses (5,477) an agent multiple-employer public employee defined benefit pension plan. PERS Total operating Income 4,617 provides retirement and disability benefits, annual cost-of-living adjustments, and Nonoperating income(expenses) 183 death benefits to plan members and beneficiaries. PERS acts as a common Interest income (1,755) investment and administrative agent for participating public entities within the Interest expense State of California. Benefit provisions and all other requirements are established Loss on disposal of capital assets (9) 906 by State statute and City ordinance. A copy of PERS' annual financial report may Capital contribution Transfer out (480) be obtained @www.calpers.ca.gov.
Total nonoperating expense (1,155)
Change in net position 3,462 Funding Policy Net position at beginning of year, as restated 84,458 Net position at end of year $ 87,920 Participants are required to contribute 8.0% (9.0% for fire and police safety employees) of their annual covered salary. For miscellaneous employees the City pays 7% of the participant contributions and the employee pays 1%; for management employees hired after January 10, 2012, the employee pays the Condensed Statement of Cash Flows entire 8%. For police safety, the city pays the entire 9% of the participant contributions. For fire safety employees, the entire 9% is paid by the employees. In Net cash provided by (used in): addition, the City is required to contribute at an actuarially determined rate Operating activities $ 6,915 applied to annual covered payroll; the current rates are 21.642% for Noncapital financing activities (480) miscellaneous employees, 30.860% for police safety employees and 29.705% for Capital and related financing activities (9,079) fire safety employees. The contribution requirements of plan members and the Investing activities (1,757) City are established and may be amended by PERS.
Net decrease (4,401)
Beginning cash and cash equivalents 31.671 Ending cash and cash equivalents $ 27,270 PERS Contribution Rate City Contribution Employee Contribution Reconciliation of cash and cash equivalents Cash and cash equivalent $ 7,854 Paid by Paid by Paid by Paid by Restricted cash and cash equivalent 19,416 Plan City Employee City Employee Total Total cash and cash equivalent $ 27,270 Miscellaneous 18.839% 2.803% 7.000% 1.000% 29.642%
Miscellaneous Management 18.839% 2.803% 7.000% 1.000% 29.642%
Miscellaneous Management (new hires since 01/10/2012) 21.642% 0.000% 0.000% 8.000% 29.642%
Fire Safety (Management) 29.705% 0.000% 0.000% 9.000% 38.705%
Fire Safety (Bargaining Unit) 29.705% 0.000% 0.000% 9.000% 38.705%
Police Safety (Management) 30.860% 0.000% 9.000% 0.000% 39.860%
Police Safety (Bargaining Unit) 30.860% 0.000% 9.000% 0.000% 39.860%
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CITY OF ANAHEIM Annual Pension Cost For fiscal year 2013, the City's annual pension cost of $58,213 for PERS was equal Effective for periods beginning after June 15, 2014 implementation of GASB to the City's required and actual contributions. The required contribution was Statement No. 68 Accounting and Financial Reporting for Pensions-an amend-determined as a part of the June 30, 2010 actuarial valuations. ment of GASB Statement No. 27 will be required. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of The City's annual pension cost, the percentage of annual pension cost resources, and deferred inflows of resources, and expense/expenditures.
contributed to the plans, and the net pension obligation for the fiscal years This Statement identifies the methods and assumptions that should be used ended June 30, 2011,2012 and 2013 are as follows: to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee Fiscal Year Annual Percentage of Net Pension service. This Statement will require the City to recognize a liability equal to the Ending Pension Cost (APC) APC Contributed Obligation net pension liability. Under this new reporting requirement, the City would record the unfunded liability ($345,236 at June 30, 2012, as shown above),
06/30/11 $51,913 100% $0 as adjusted by the requirements of this Statement, as a liability on the 06/30/12 57,560 100% 0 Statement of Net Position. The exact impact to the City's financial statements 06/30/13 58,213 100% 0 in conforming to this Statement has yet to be determined.
Funded Status and Fundina Proqress Actuarial valuation of an ongoing plan involves estimates of the value of Actuarial Methods and Assumptions reported amounts and assumptions about the probability of occurrence of events far into the future. Amounts determined regarding the funded status of the In the June 30, 2012, actuarial valuations, the entry age actuarial cost method plan and the annual required contributions of the employer are subject to was used. The actuarial assumptions included: (a) 7.50% investment rate of return continual revision as actual results are compared with the past expectations and (net of administrative expenses), (b) projected annual salary increases that vary new estimates are made about the future. by duration of service, and (c) 2% per year cost-of-living adjustments. Both (a) and (b) included an inflation component of 2.75%. The actuarial value of PERS The table below displays the funding progress of the three plans and is based assets was determined using techniques that smooth the effects of short-term upon the most recent actuarial valuation data as of June 30, 2012: volatility in the market value of investments over a 15-year period (smoothed market value). The PERS unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The average (A) (B) (C) (DI (E) IF) remaining amortization periods were 19 years for the miscellaneous plan and 28 Actuaral Unfunded ULas a years for safety police and fire plans for years of service unfunded.
value of Liability Funded Ratios Annual %of Assets Accrued (UL) AVA Market Covered Payroll Plan tAVA) Liability (B)-(A) (A)I/(B) Value Payroll (C)/(E) Other Post-employment Benefits Miscellaneous $ 854,296 $ 1,045.037 $ 190,741 81.7% 68.2% $ 105.544 180.7% In addition to the pension benefits described above, the City provides other post-Police Safety 473,233 565,214 91,981 83.7% 69.9% 43,205 212.9%
employment benefits (OPEB) as a single-employer defined benefit healthcare Fire Safety 283,211 345,725 62,514 81.9% 68.3% 22.967 272.2%
plan. The OPEB provides medical, dental and life insurance benefits to eligible
$1,610,740 $ 1,955.976 $ 345.236 82.5% 68.7% $171,716 201.1%
retirees (hired prior to January 1, 1996, Anaheim Police Association employees hired prior to July 6, 2001, and Anaheim Fire Association employees hired prior to The schedule of funding progress, presented as required supplementary November 9, 2001) in accordance with City Personnel Resolutions and various information following the notes to the financial statements, presents multi-year Memoranda of Understanding. Eligible employees hired after the dates above trend information, which shows whether the actuarial value of plan assets is have access to the City's medical and dental plans but do not receive a defined increasing or decreasing over time relative to the actuarial accrued liability for benefit. There are no separately issued financial statements for the OPEB.
benefits.
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CITY OF ANAHEIM The City's annual OPEB cost, the percentage of annual OPEB cost contributed to Funding Policy the plan, and the net OPEB asset for the fiscal year ended June 30, 2013 are as follows:
The contribution requirements of plan members and the City are established in OPEB accordance with City Personnel Resolutions and various Memoranda of Ending OPEB Cost Cost Contributed Asset Understanding. The retired plan members receiving benefits make varying 06/30/11 $ 10,132 101.3% $ 9,629 contributions toward the cost of these benefits depending on the retiree's 06/30/12 9,530 101.4% 9,765 Medicare eligibility. year of hire, age and employee group. Retiree contributions for the fiscal year ended June 30, 2013, were 2.54% of total payroll. 06/30/13 8,574 114.6% 11,017 In June 2008, the City joined the California Employer's Retiree Benefit Trust Funded Status and Fundina Proaress Program (CERBT) to pre-fund OPEB liabilities. The CERBT is an agent multiple employer plan consisting of an aggregation of single-employer plans, with Actuarial valuation of an ongoing plan involves estimates of the value of pooled administrative and investment functions that are administered by PERS. A reported amounts and assumptions about the probability of occurrence of copy of the aggregated CERBT annual financial report may be obtained events far into the future. Amounts determined regarding the funded status of the
@www.calpers.ca.gov. plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with the past expectations and The City contributes an amount not less than the annual required contribution new estimates are made about the future. The schedule of funding progress, (ARC) of the employer. The ARC is an amount actuarially determined in presented as required supplementary information following the notes to the accordance with the parameters of GASB Statement No. 45. The ARC represents financial statements, will present multi-year trend information in subsequent years, a level of funding that, if paid on an ongoing basis, is projected to cover normal that will show whether the actuarial value of plan assets is increasing or costs each year and amortize any unfunded actuarial liabilities over a period not decreasing over time relative to the actuarial accrued liability for benefits.
to exceed thirty years. The ARC rate for the fiscal year ended June 30, 2013, was 5.62% of total payroll, The table below displays the funding progress of the plan and is based upon the most recent actuarial valuation data:
Annual OPEB Cost and Net OPEB Asset (A) (B) (C) (D) (E) (F)
The City's annual OPEB cost, amount actually contributed to the plan, and Unfunded Funded UL as a changes in the City's net OPEB asset for the fiscal year ended June 30, 2013, are Actuarial Actuarial Liability Ratios Annual % of as follows: Valuation Value of Accrued (UL) AVA Covered Payroll Date Assets (AVA) Liability (B) - (A) (A) / (B) Payroll (C) /(E)
ARC $ 8,694 Interest on net OPEB asset (743) 06/30/11 $ 67,747 $ 201,108 $ 133,361 78.8%
33.7% $ 169,331 Adjustment to ARC 623 Annual OPEB cost 8,574 Actuarial Methods and Assumptions Contributions made 9,826 Projections of benefits for financial reporting purposes are based on the Annual OPEB cost (8,574) substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the Change in OPEB asset 1,252 historical pattern of sharing of benefits costs between the City and plan members Net OPEB asset - beginning of year 9,765 to that point. The actuarial methods and assumptions used include techniques Net OPEB asset - end of year $ 11,017 that are designed to reduce short-term volatility in the actuarial accrued liability and the actuarial value of assets, consistent with the long-term perspective of the calculations.
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CITY OF ANAHEIM In the July 1, 2011, actuarial valuation, the entry age normal actuarial cost The City has no significant equity interest in Hazmat, and accordingly neither method was used. The actuarial assumption included a 7.61% investment rate of assets nor liabilities of Hazmat have been recorded in the City's basic financial return, an annual healthcare cost trend rate ranging from 8.00 % - 9.50% initially statements. For a copy of Hazmat's separate financial statements, contact the and declining to 5,50% by 2020, payroll growth rate of 3.25% per year, and an Finance Director of the City.
inflation factor of 3.00%. The OPEB unfunded actuarial accrued liability is being amortized as a level percentage of payroll over a closed 30-year period. The Metro Cities Fire Authority remaining amortization period as of July 1, 2011, is 26 years.
The City participates in a joint powers authority, Metro Cities Fire Authority (Fire NOTE 11 - JOINT VENTURES AND JOINTLY-OWNED PROPERTIES: Authority), for the purpose of providing a central communication network and record keeping system to support fire suppression, emergency medical Authority for Orange County - City Hazardous Materials Emergency Response assistance, rescue service, and related services provided by the members of the Fire Authority.
The City participates in a joint powers authority, the Authority for Orange County-City Hazardous Materials Emergency Response (Hazmat), for the purposes of The following entities are members of the Fire Authority: City of Anaheim, City of responding to, assessing the nature of, and stabilizing any emergency created by Fountain Valley, City of Fullerton, City of Garden Grove, City of Huntington Beach, the release or threatened release of hazardous materials. City of Newport Beach, and the City of Orange. Members of the Board of Directors (the "Board") consist of one voting Board member and an alternate The following entities are members of Hazmat: City of Anaheim, Orange County appointed by their governing body.
Fire Authority, and the City of Huntington Beach (provider agencies). Members of the Board of Directors (Hazmat Board) consist of one voting Board member and Public entities in Orange County may receive services from the Fire Authority by an alternate appointed by the governing body from the provider agencies. executing an agreement and paying a fair share contribution. Audited financial information for the Fire Authority as of and for the year ended June 30, 2013, was Distribution of fair share contributions to reimburse the provider agencies are as as follows:
follows: City of Anaheim, 27.3%; Orange County Fire Authority, 27.3%; City of Santa Ana, 27.3%; and City of Huntington Beach, 18.1%. Effectively April 20, 2012, Total assets $ 2,408 the City of Santa Ana was no longer a provider agency. The JPA, including the Total liabilities 541 distribution allocation, will be amended in fiscal year 2014. Members' equity 1.867 Total revenues 4,673 At the direction of the Hazmat Board, revenues are disbursed to the provider agencies at the end of each preceding quarter. Audited financial information for Total expenses 4,776 the joint powers authority as of and for the year ended June 30, 2013, was as Revenues under expenses (103) follows:
The City has no significant equity interest in the Fire Authority, and accordingly Total assets $ 73 neither assets nor liabilities of the Fire Authority have been recorded in the City's Total liabilities 53 basic financial statements. For a copy of the Fire Authority's separate financial Members' equity 20 statements, contact the Finance Director of the City.
Total revenues 155 Jointly-owned utility plants Total expenses 156 Revenues under expenses (1) The City's Electric Utility owns a 10.04% ownership interest in the coal-fired San Juan Generating Station, Unit 4 (SJ), located near Waterflow, New Mexico. The other participants in SJ and their respective ownership include: Public Service of Hazmat does not have any debt outstanding at June 30, 2013. New Mexico, 45.48%; City of Farmington, New Mexico, 8.48%: County of Los 78
CITY OF ANAHEIM Alamos, New Mexico, 7.20%; and M-S-R Public Power Agency, 28.80%. There are no separate financial statements for this venture, as each participant's interest in Southern California Public Power Authority the utility plant is included in their respective financial statements. The City's cumulative share of construction costs included in the utility plant at June 30, The Electric Utility is a member of the Southern California Public Power Authority 2013, amounted to $84,407. The City's bonded indebtedness incurred to finance (SCPPA), a joint powers agency. SCPPA provides for the financing and the purchase of the 10.04% ownership interest is also included in the basic construction of electric generating and transmission projects for participation by financial statements. some or all of its members. To the extent the Electric Utility participates In projects developed by SCPPA, it is obligated for its proportional share of the cost of the The City sold its 3.16% ownership interest of SONGS to SCE on December 29, 2006. project. The City is obligated for the following percentage of electrical facilities Accordingly, the Electric Utility ceased recording oll related operating expenses, owned by SCPPA:
except marine mitigation costs and spent fuel storage charges, as of December 29, 2006. Based on the SONGS settlement agreement, the Electric Utility is Entitlement Expiration responsible for the City's share of marine mitigation costs up to $2,300, and SCE is Transmission:
responsible for costs between $2,300 and $7,300. The Electric Utility is responsible Souther Transmission System (STS) 17.6 % 2027 for spent fuel storage charges until the federal government takes possession.
Mead-Adelanto Project (MAP) 13.5 2030 As a former participant in SONGS, the Electric Utility is subject to assessment of Mead-Phoenix Project (MPP) 24.2 2030 retrospective insurance premiums in the event of a nuclear incident at SONGS or Generation:
any other licensed reactor in the U.S.
Hoover Dam Uprating (Hoover) 42.6 % 2018 NOTE 12- COMMITMENTS AND CONTINGENCIES: Magnolia Generating Station (Magnolia) 38.0 2037 Canyon Power Project (Canyon) 100.0 2040 Intermountain Power Agency Natural Gas Reserve Projects (Natural Gas)
The Electric Utility has entered into a power purchase contract with the SCPAA Natural Gas Project-Pinedale, Wyoming 35.7 % 2033 Intermountain Power Agency (IPA) for delivery of electric power. The share of IPA SCPPA Natural Gas Project-Barnett, Texas 45.5 2033 power is equal to 13.225% of the generation output of IPA's two recently uprated coal-fueled generating units located in Delta, Utah (Unit 1 and 2 net output is 900 Take or pay commitments mega watts each). The City is obligated for the following percentage of electrical facilities at IPA: As part of the take or pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations. Payment for Entitlement Expiration these obligations will be made from the operating revenues received during the Generation: year that the payment is due. A long-term obligation has not been recorded on Intermountain Power Project 13.225 % 2027 the accompanying basic financial statements as these commitments do not represent an obligation of the Electric Utility until the year the power is available to be delivered to the Electric Utility. The following schedule details the amount of The contract constitutes an obligation of the Electric Utility to make payments debt service that is due and payable by the Electric Utility for each project and from revenues and requires payment of certain minimum charges. These the final maturity date.
minimum charges include debt service requirements on the financial obligations used to construct the plant. These requirements are considered a cost of purchased power, 79
CITY OF ANAHEIM Fiscal Year Natural Ending 6/30 IPA STS MAP MPP Hoover Magnolia Gas Canyon Total Operating Leases 2014 $ 35,915 $ 11.221 $2,874 $ 1,817 $ 852 $ 8,410 $ 5.857 $ 6,385 $ 73,331 2015 37.201 14,582 3,198 1,704 958 8,547 7,147 12,770 86,107 In January 2005, the City entered into a long-term noncancelable ground lease with City of Fullerton, for an approximately 1.56 acre site at the Fullerton Municipal 2016 30,101 14,579 3,015 1,611 957 8,549 7.090 12,769 78,671 Airport for the operation of the Anaheim Police Department Heliport. The term of 2017 27,584 14,313 2,994 1,606 957 8,550 6,831 19,504 82.339 the lease is 40 years with two 10-year extensions commencing from January 2005 2018 24,741 14,108 2,971 1,596 956 6.658 6,081 19,505 76,616 and ending December 2044. The base rent is adjusted every five years by ten 2019-2023 117,889 70.637 8.054 4,314 32,683 23.211 97,508 354,296 percent (10%). The City constructed a building of approximately 30,000 square 2024-2028 39,183 37,574 15,692 97,514 189,963 feet that includes offices, aircraft maintenance and storage facilities and other 2029-2033 38,781 10,774 97,515 147,070 infrastructure supporting such facilities on the leased premise. Future minimum 2034-2038 50,241 97.514 147,755 lease payments to be made from unrestricted revenues of the General Fund are 2039-2041 58,511 58.511 as follows:
Total $273.431 $178.623 $23,106 $12,648 $4,680 $199,993 $82,683 $519,495 $1,294,659 Fiscal Year Ending June 30 2014 $ 54 In addition to debt service, the City's entitlement requires the payment for fuel 2015 57 costs, operations and maintenance (O&M), administration and general (A&G) and other miscellaneous costs associated with the generation and transmission 2016 59 facilities discussed above. These costs do not have a similar structured payment 2017 59 schedule as debt service, however, prior experience indicates that annual costs 2018 59 are generally consistent from year to year. The fiscal year 2013 expenses for fuel, 2019-2023 317 O&M, A&G and other costs at these projects were as follows: 2024-2028 349 Natural 2029-2033 384 Fiscal Year IPA STS MAP MPP Hoover Magnolia Gas Canyon Total 2034-2038 422 2013 $ 48,886 $ 5,681 $ 351 $ 319 $ 519 $ 17,297 $ 1,207 $ 7,461 $ 81,721 2039-2043 464 2044 143 Total minimum future rentals $ 2,367 Cap-and-Trade Program California Senate Bill (AB) 32 requires that Utilities in California reduce their The Honda Center greenhouse gas (GHG) emissions to 1990 levels by the year 2020. It directed the California Air Resources Board (CARB) to develop regulations of GHG that On January 26, 1999, the City entered into a series of lease transactions for the became effective January 2012. Emission compliance obligations under the Honda Center. Under these transactions, the City leased the Honda Center to a Cap-and-Trade regulation began in January 2013, third party trustee acting for the benefit of an equity investor for a term of approximately 39.2 years. The trustee sublet the facility back to the City for 20 The Cap - and - Trade program (Program) is implemented in the first phases years, which was shorter than the then remaining term of the management beginning January 1, 2013 to December 31, 2014. This Program requires Electric agreement between the third-party manager at that time (Manager) and the Utilities to have GHG allowances on an annual basis to offset GHG emissions City in consideration of an advance rental payment for the entire lease term. At associated with generating electricity. CARB will provide a free allocation of GHG the end of the sublease, the City has a purchase option to purchase the trustee's allowance to each electric utility to mitigate retail rate impacts. This free rights under the lease for a fixed amount. The advance rent payments to the City allocation of GHG allowance is expected to be sufficient to meet Electric Utility's were deposited into a trust fund and invested. The cash scheduled to be GHG compliance obligations for retail sales. The compliance obligation for the available from this trust fund is sufficient to pay the City's rent payments for the wholesale sales requires the allowance to be obtained through the auction or in the term of the sublease and to exercise the City's purchase option at the end of the secondary market quarterly. At June 30, 2013, the value of the prepaid Cap and sublease. The excess of the amount of the advance rent payment made by the Trade allowance is $2,697, and the value of the Cap and Trade obligation is $2,303. trustee to the City over the deposit to the trust funds, after the payment of 80
CITY OF ANAHEIM transaction expenses and payment to the Manager for agreeing to pledge its to October 16, 2019. Concurrent with amending the termination right, the City interest as Manager under the management agreement then in effect and and the Team entered into two Memorandums of Understanding providing a agreeing to undertake certain additional obligations to the transaction, was nonbinding framework for negotiations relating to an extension of the Team's approximately $4,000. This amount was recognized by the City as unearned tenancy at the stadium and for the potential development of the surrounding revenue and is being amortized over the sublease term. The City has secured its stadium area.
obligations to the other parties to these lease transactions by a pledge of its respective interest in revenues from the facility, subordinate (with certain Under the terms of the agreement, the Team assumed full responsibility for all exceptions) to any interests of the debt holders of the facility. The City's Stadium operations and maintenance, including capital maintenance. The Team obligations under these lease transactions are considered to be defeased in books all Stadium and parking lot events (except for ten annual City events),
substance, and therefore the related liabilities as well as the trust assets have pays all expenses, and retains all revenue (subject to the City's rights to share in been excluded from the City's financial statements. The City's and AAM's certain net revenues) except that the City credits the Team up to $500 per year respective rights under the FMA are subject in certain respects to the effect of the adjusted annually for CPI as a capital reserve contribution, calculated on the 1999 lease transaction. basis of property taxes. The City's participation in net revenues includes amounts received by the Team above certain thresholds including paid admissions ($2.00 Effective December 16, 2003, the City and Anaheim Arena Management LLC per paid admission in excess of 2.6 million admissions per year), net income from (AAM) entered into a Facility Management Agreement (FMA) whereby AAM has nongame events (in excess of $2,000 per year adjusted annually for CPI), and the exclusive right and license to manage, maintain and operate all aspects of parking lot net income (25% in excess of $4,000 per year adjusted annually for the Honda Center in accordance with the FMA through June 30, 2023, with an CPI). Additionally, as indicated above, the City retained the right to book and option to extend the term for an additional period not to exceed 10 years. retain all revenue from ten parking lot events per year. Major League Baseball Annual distributions to the City, AAM and the County of Orange are required for consented to the transfer of the Team in fiscal year 2003 to interests controlled by their respective share of adjusted net revenues, as defined in the FMA. In the Arte Moreno. No changes in the terms of the agreement with the Team were event that cash on hand is insufficient to pay operating expenses, debt service, made in connection with that transfer.
distributions to the City, the County of Orange, or other amounts payable, AAM shall make or cause an affiliate or third-party lending institution to make loans for The Agreement also provided that the City had the right to develop such purposes, as defined in the FMA. Such funds will be repaid from gross approximately 42 acres of the parking lot development site. In 1998 a land sale of revenues or adjusted net revenues, if any, as defined in and in accordance with $1,000 for a 1.25 acre site was approved for the construction of a 1,100-seat disbursement priorities established in the FMA. At June 30, 2013, the outstanding theatre called "Tinseltown Studios" (now known as "City National Grove of conduit debt on the Honda Center totaled $31,500. The debt is non-recourse, Anaheim"). In November 2002, the City purchased the facility and the land for payable from revenues generated by the facility. Neither the faith and credit nor $6,700 from its then owner, SMG. Concurrent with the purchase, the City granted the taxing power of the City is pledged to the payment of the debt. The debt is to Nederlander-Grove LLC (Nederlander) a license to operate the facility for not a general or special obligation of the City, nor does it contain any credit three years with the right to extend another five years. In May 2009, the enhancements that secondarily pledge existing or future resources of the City management agreement was amended extending the term to December 31, (other than revenues generated by the facility), and accordingly it is not 2015 with the right to extend another five year period. Additionally, under the reflected In the accompanying basic financial statements. amended management agreement, effective January 1, 2009, Nederlander no longer receives a management fee of $150 and the City's share in the annual net Angel Stadium of Anaheim profits and losses from operations increased from 50% to 60%. Nederlander is responsible for 100% of losses in excess of $400, thereby limiting the City's share of On May 14, 1996, the City and the California Angels, LP (Team), which was then net losses to a maximum of $240 in any given year. The City may elect to managed by Disney Sports Enterprises, Inc. (subsequently known as Anaheim terminate the agreement prior to expiration of the term under certain conditions, Sports, Inc.), entered into an agreement to provide for the operation and and pay the unamortized balance of capital assets purchased during the term to refurbishment of the Stadium. Pursuant to the agreement, the Team assumed Nederlander. Concurrent with the amendment to the management agreement, responsibility for the operation of the Stadium on October 1, 1996. The agreement the parking license fee agreement was amended, wherein the parking license runs for 33 years (subject to a limited Team option to cancel at 20 years and the fees from Nederlander were reduced to $176 and are subject to adjustment Team's right to extend the term). In September 2013, the agreement was annually based on CPI increases. Nederlander paid the City $188 for the year modified extending the Team's right to terminate the agreement by three years ended June 30, 2013, for parking and common area maintenance.
81
CITY OF ANAHEIM Muzeo Remaining Expected Construction Completion In October 2007, the City and the former Redevelopment Agency entered into a Capital Prolect Commitment Date property operating agreement with the Muzeo Foundation to operate and provide programming for the Muzeo, the downtown museum. The property 2013 Local Street Rehabilitation Project $ 774 2013 operating agreement is for a term of 30 years and provides for a line of credit for Anaheim Boulevard Street Improvement 701 2013 the first 3 years from the City to the Muzeo Foundation in an amount not to Anaheim Canyon Metrolink Pedestrian Improvement 872 2013 exceed $1,000 or 95% of pledges at an annual interest rate of 5%. The property operating agreement was amended on August 1, 2010, to extend the maturity Anaheim Regional Transportation Intermodal Center 103,737 2014 date to June 30, 2015. It also amended the aggregate amount of the line of Avon Dakota Neighborhood Revitalization Housing Project 2,625 2015 credit to $500 during fiscal year 2011 and $200 during each fiscal year thereafter Broadway Street Improvement/Dole Avenue - Magnolia Ave 555 2013 with amounts being converted to grants upon achieving fund raising thresholds. Brookhurst St from Katella Avenue to Ball Road 7,704 2013 At June 30, 2013, there was no amount due to the City. Direct Buried Cable Project 1,516 2014 Edison Bike Trail(West Anaheim/Lola Avenue) 1,555 2014 Euclid Street Widening/Westmont - Crescent 1,037 2014 Litigation Hannum substation B-bank transformers 933 2014 A number of claims and suits are pending against the City for alleged damages Katella Avenue Undercrossing 1-5 4,367 2014 to persons and/or property and for other alleged liabilities arising out of matters Knott Avenue and Orange Avenue Street Improvement 1,033 2014 usually incident to the operation of a city such as Anaheim. Although the Linda Vista Reservoir and Pump Station Replacement 593 2014 aggregate amount asserted for such lawsuits and claims is significant, in the Pressure Regulating Stations Rehabilitation 593 2014 opinion of City management, the City has strong defenses against such claims, Sanitary Improvement Model 38, Lincoln Avenue 1,439 2013 and thus the ultimate loss, if any, relating to these claims and suits not covered by Sanitary Improvement Model 7, North of La Palma 1,794 2013 insurance or reflected in the financial statements, will not materially affect the financial position of the City. Sunkist Street Improvement/Cerritos Avenue-Tryon Street 1,765 2013 Tustin Avenues and La Palma Street Widening 10,786 2014 Grants Underground District No 59 Phase 2, Brookhursl/Orange 2,809 2014 Underground District No 59-Phase I, Brookhurst 979 2014 Amounts received or receivable from grant agencies are subject to audit and Underground District No. 57 Phase I, Brookhurst 7,983 2014 adjustment by grantor agencies. Any disallowed claims, including amounts Vehicle Acquisitions 1,838 2014 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 At June 30, 2013 the Redevelopment Successor Agency had the following determined at this time, although the City expects such amounts, if any, to be commitments with respect to unfinished capital projects:
Immaterial.
Remaining Expected Construction and other significant commitments Construction Completion Capital Proiect Commitment Date At June 30, 2013, the City had the following commitments with respect to unfinished capital projects, disposition and development agreements, Anaheim Boulevard Residential Housing Project $ 2,515 2014 reimbursement agreements and cooperation agreements: Avon Dakota Neighborhood Revitalization Housing Project 14.777 2015 Colony Park Phase IV Home Buyer Assistance and Remediation 8,250 2016 82
CITY OF ANAHEIM NOTE 13 - SUBSEQUENT EVENTS:
Use of Revolving Credit Agreement On July 13, 2013, the Electric Utility used $44,000 from the proceeds of the Revolving Credit Agreement with Wells Fargo Bank, National Association, together with funds from the 2002-B Electric Revenue Bonds reserve and debt service balances of
$10,030 and funds of $7,053 from the City, to retire the outstanding principal balance of $60,205 and interest balance of $878 on the 2002-B Electric Revenue Bonds. In July, 2013, the Wells Fargo note has an interest rate of 0.85% per annum.
On October 15, 2013, the Water Utility used $5,200 from the proceeds of the Revolving Credit Agreement with Wells Fargo Bank, National Association, for the purpose of paying for the costs of acquisition and construction of improvements of its water system.
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CITY OF ANAHEIM City of Anaheim Summary of Pension Obligation Funding Progress (inthousands)
Employee Retirement System - Schedule of Funding Progress Value of Assets Unfunded Liability Funded Ratios Annual June 30, 2012 Actuarial Value Market Value of Covered UL as a %
Actuarial Valuation Date of Assets (AVA) Assets (MVA) Accrued Liability AVA MVA AVA MVA Payroll of Payroll Miscellaneous $ 854,296 $ 712,715 $ 1,045,037 $ 190,741 $ 332,322 81.7% 68.2% $ 105,544 180.7%
Police Safety 473,233 395,085 565,214 91,981 170,129 83.7% 69.9% 43,205 212.9%
Fire Safety 283,211 236,130 345,725 62,514 109,595 81.9% 68.3% 22,967 272.2%
Total $ 1,610,740 $ 1,343,930 $ 1,955,976 $ 345,236 $ 612,046 82.3% 68.7% $ 171,716 201.1%
Value of Assets Unfunded Liability Funded Ratios Annual June 30, 2011 Actuarial Value Market Value of Covered UL as a %
Actuarial Valuation Date of Assets (AVA) Assets (MVA) Accrued Liability AVA MVA AVA MVA Payroll of Payroll Miscellaneous $ 823,258 $ 729,226 $ 1,004,444 $ 181,186 $ 275,218 82.0% 72.6% $ 110,234 164.4%
Police Safety 453,318 404,171 548,400 95,082 144,229 82.7% 73.7% 44,567 213.3%
Fire Safety 274,471 243,777 335,781 61,310 92,004 81.7% 72.6% 23,681 258.9%
Total $ 1,551,047 $ 1,377,174 $ 1,888,625 $ 337,578 $ 511,451 82.1% 72.9% $ 178,482 189.1%
Value of Assets Unfunded Liability Funded Ratios Annual June 30, 2010 Actuarial Value Market Value of Covered UL as a %
Actuarial Valuation Date of Assets (AVA) Assets (MVA) Accrued Liability AVA MVA AVA MVA Payroll of Payroll Miscellaneous $ 783,241 $ 611,101 $ 968,464 $ 185,223 $ 357,363 80.9% 63.1% $ 116,877 158.5%
Police Safety 432,262 339,467 519,062 86,800 179,595 83.3% 65.4% 45,620 190.3%
Fire Safety 263,280 206,169 317,672 54,392 111,503 82.9% 64.9% 24,746 219.8%
Total $ 1,478,783 $ 1,156,737 $ 1,805,198 $ 326,415 $ 648,461 81.9% 64.1% $ 187,243 174.3%
Other Post-employment Benefits - Schedule of Funding Progress Unfunded Funded Annual Actuarial Value Liability Ratios Covered UL as a %
Actuarial Valuation Date of Assets (AVA) Accrued Liability AVA AVA Payroll of Payroll June 30, 2011 $ 67,747 $ 201,108 $ 133,361 33.7% $ 169,331 78.8%
June 30, 2010 63,920 211,914 147,994 30.2% 177,229 83.5%
June 30, 2008 63,097 155,728 92,631 40.5% 165,137 56.1%
See accompanied independent auditors' report 85
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7 Nomao Govermenta Fns
NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS are used to account for revenues derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
GAS TAX AND ROADS FUND - Established to account for the construction and maintenance of the road network system of the City. Financing is provided primarily by the City's shore of Federal, State, and local gasoline taxes, Federal, State, and local regulations require that these gasoline taxes be used to Improve and maintain streets, and includes programs Intendod to improve the air quality of the region.
WORKFORCE DEVELOPMENT FUND - Established to account for the City's involvement in Federal, State, and local programs to create jobs and provide the unemployed citizens In the Anaheim area with job training opportunities.
COMMUNITY DEVELOPMENT BLOCK GRANT FUND - Established to account for financing of the development of viable urban communities through the provision of decent housing, suitable living environments and economic opportunity, principally for persons of low and moderate income. Financing is provided by the Federal Housing and Urban Development (HUD) grants.
COMMUNITY SERVICES FACILITIES - Established to account for the development of new parksites, playgrounds and library facilities, Federal and State grant programs, in conjunction with fees charged to residential and commercial developers, provide financing. Much of this revenue is used to support the capital construction of parks and other recreational facilities throughout the City. Budget fluctuations from year to year are the result of variations in the capital program.
SEWER AND STORM DRAIN CONSTRUCTION FUND - Established to account for the construction of the City's waste water collection and disposal system. Financing is provided by fees charged to residential and commercial developers.
GRANTS FUND - Established to account for various grants requiring segregated fund accounting. Financing is provided by Federal, State, and local agencies.
ANAHEIM RESORT MAINTENANCE DISTRICT FUND - Established to account for the levy and collection of special assessments to pay the cost of annual maintenance and improvements within the district against those parcels that specifically benefit from the enhanced maintenance and improvements.
ANAHEIM TOURISM IMPROVEMENT DISTRICT FUND - Established to account for the collection of a special assessment supporting marketing, promotion and transit project costs in support of the City's tourism and convention industry.
NARCOTIC ASSET FORFEITURE FUND - Established to account for funds received from Federal and State agencies that are derived from monies and property seized by the Police Department in drug related Incidents. These funds are used to supplement existing resources of the City's law enforcement activities.
DEBT SERVICE FUNDS are used to account for the accumulation of resources and the payment of principal and interest on general debt of the City and related entities.
GENERAL OBLIGATION BONDS FUND - Established to accumulate resources for the payment of principal and interest on general obligation bonds of the City. Debt service is financed by property tax revenues, MUNICIPAL FACILITIES FUND - Established to accumulate resources for payment of the principal and interest on the certificates of participation for the Parking Facility Project, Police Facilities Projects, Arena Land Acquisition, and other various acquisitions and capital improvements.
ANAHEIM RESORT IMPROVEMENTS FUND - Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for the Anaheim Resort improvements.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the City, except for those financed by proprietary funds.
TRANSPORTATION IMPROVEMENT PROJECTS FUND - Established to account for transportation improvement projects in the City, primarily in support of the Anaheim Regional Transportation Intermodal Center (ARTIC), which Isa transportation gateway and mixed-use activity center funded by grants from OCTA. Financing is provided by Federal, State and local agencies.
DEVELOPMENT IMPACT PROJECTS FUND - Established to account for Infrastructure improvements, primarily in the Platinum Triangle area, which provide development opportunities for high density, mixed use, office, restaurant, and residential projects. Financing Isprovided primarily by development impact fees.
OTHER CAPITAL IMPROVEMENTS FUND - Established to account for miscellaneous capital projects as determined by the City Council. Currently, financing is provided by fees from developers for Infrastructure Improvements, HUD108 loans and subsidies from the General Fund, MELLO-ROOS PROJECTS - Established to account for road, sewer and water improvements In the community facility districts. Financing is provided by the sale of special tax bonds that are secured by and payable from the proceeds of an annual special assessment on the property within the district.
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Governmental Funds by Fund Type June 30, 2013 (inthousands)
Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds ASSETS $ 9,564 Cash and cash equivalents $ 15,412 $ 229 $ 25,205 Investments 31,952 475 19,826 52.253 Accounts receivable, net 1,261 1,261 Accrued interest receivable 113 22 72 207 Notes receivable, net 25,921 25,921 Due from other funds 6,989 6,989 Due from other governments 22,925 7 14,838 37,770 Prepaid and other assets 4,619 4,619 Restricted cash and cash equivalents 22,095 19,517 41,612 Restricted investments 38,911 38,911 Due from the Successor Agency 6,349 7,928 14,277 Total assets $ 1-08,552 $ 61,739 $ 78,734 $ 249,025 LIABILITIES Accounts payable $ 6,406 $ 114 $ 8,985 $ 15,505 Wages payable 161 22 183 Deposits 1,090 1,090 Due to other funds 728 6,989 7,717 Total liabilities 8,385 114 15,996 24,495 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 14,090 3,929 18,019 Unavailable resources - long-term notes receivable 25,921 25,921 Unavailable resources - due from Successor Agency 6,349 7,928 14,277 Total deferred inflows of resources 46,360 11,857 58,217 FUND BALANCES Nonspendable:
Prepaid and other assets 4,619 4,619 Restricted:
Anaheim Resort maintenance and improvement 8,577 8,577 Capital projects 2,664 2,664 Debt service 61,625 61,625 Development impact projects 13,178 44,712 57,890 Grant purposes 4,839 4,839 Homebuyer assistance program 4,124 4,124 Streets, roads and transportation improvement projects 25,045 106 25,151 Assigned:
Capital projects 743 7,299 8,042 Other purposes 13 13 Unassigned (7,331) (3,900) 11, 2431 Total fund balances 53,807 61,625 50,881 Total liabilities, deferred inflows of resources, and fund balances 61,739 $ 78,734 $ 249,025 87 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds by Fund Type Year Ended June 30, 2013 (inthousands)
Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Revenues:
Property taxes $ 730 $ 730 Licenses, fees and permits $ 3,508 $ 809 4,317 Intergovernmental revenues 62,354 6 47,833 110,193 Charges for services 17,086 17,086 Use of money and property 1,093 130 400 1,623 Other 1,494 2,100 3,594 Total revenues 85,535 866 51,142 137,543 Expenditures:
Current:
City Attorney 120 120 Finance 130 130 Police 9,277 9,277 Fire 1,054 1,054 Community Development 7,826 234 8,060 Planning 1,435 1,435 Public Works 10,278 1,583 11,862 Community Services 861 677 1,538 Convention, Sports and Entertainment 9,279 9,279 51,982 46,500 98.482 Capital outlay Debt service:
Principal retirement 984 16,779 1,185 18,948 Interest charges 556 18,802 450 19,808 Total expenditures 93,652 35,712 50,629 179,993 Excess (deficiency) of revenues over (under) expenditures (8,117) (34,846) 513 (42,450)
Other financing sources (uses):
Transfers in 1,527 43,073 250 44,850 Transfers out (245) (1,228) (1,473)
Issuance of loan payable 30,250 1,250 31,500 Total other financing sources 31,532 43,073 272 74,877 Net change in fund balances 23,415 8,227 785 32,427 Fund balances at beginning of year 30,392 53,398 50,096 133,886 Fund balances at end of year $5 53,807 $ 61.625 $ 50.881 $ 166J313 See accompanied independent auditors' report 88
CITY OF ANAHEIM Combining Balances Sheet Nonmajor Special Revenue Funds June 30, 2013 (in thousands)
Gas Tax Community Community Sewer and and Workforce Development Services Storm Drain Roads Development Block Grant Facilities Construction ASSETS $ 3,673 $ 2,765 Cash and cash equivalents $ 2,247 Investments 7,614 4,659 5,732 Accounts receivable, net $ 3 2 Accrued interest receivable 19 16 22 Notes receivable, net 6,501 Due from other governments 16,638 1,051 627 Prepaid and other assets 4,251 I Restricted cash and cash equivalents Due from the Successor Agency 6,349 Total assets .$ 1,054 $ 13,477 $6,925 $ 8.519 LIABILITIES Accounts payable $ 2,228 $ 495 $ 315 $ 104 $ 727 Wages payable 53 23 21 1 1 Deposits 1,090 Due to other funds 517 211 Total liabilities 2,281 1,035 547 105 1,818 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 13,228 6 1 Unavailable resources - long-term notes receivable 6,501 Unavailable resources - due from Successor Agency 6,349 Total deferred inflows of resources 13,228 6 12,851 FUND BALANCES Nonspendable:
Prepaid and other assets 4,251 Restricted:
Anaheim Resort maintenance and improvement Development impact projects 6,477 6,701 Grant purposes 79 Homebuyer assistance program Streets, roads and transportation improvement projects 19,766 Assigned:
Capital projects 342 Other purposes 13 Unassigned (,1) 13 Total fund balances 79 6,820 6,701 Total liabilities, deferred inflows of resources, and fund balances .* 1,054 $ !3,477 $ 6,925 See accompanied independent auditors' report 89
CITY OF ANAHEIM Combining Balances Sheet Nonmajor Special Revenue Funds June 30, 2013 (inthousands) (continued)
Anaheim Anaheim Resort Tourism Narcotic Maintenance Improvement Asset Grants District District Forfeiture Total ASSETS Cash and cash equivalents $ 767 $ 2,912 $ 1,776 $ 1,272 .$ 15,412 Investments 1,590 6,037 3,682 2,638 31,952 Accounts receivable, net 1,256 1,261 Accrued interest receivable 14 21 12 9 113 Notes receivable, net 19,420 25,921 Due from other governments 4,576 33 22,925 Prepaid and other assets 367 4,619 Restricted cash and cash equivalents Due from the Successor Agency 6,349 Total assets 9,003 $ 108,552
,$ 6,726 $ 3,919 LIABILITIES Accounts payable $ 504 $ 421 $ 1,445 $ 167 $ 6,406 Wages payable 34 5 2 21 161 Deposits 1,090 Due to other funds 728 Total liabilities 538 426 1,447 188 8,385 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 855 14,090 Unavailable resources - long-term notes receivable 19,420 25,921 Unavailable resources - due from Successor Agency 6,349 Total deferred inflows of resources 20,275 46,360 FUND BALANCES Nonspendable:
Prepaid and other assets 367 4,619 Restricted:
Anaheim Resort maintenance and improvement 8,577 8,577 Development impact projects 13,178 Grant purposes 1,029 3,731 4,839 Homebuyer assistance program 4,124 4,124 Streets, roads and transportation improvement projects 5.279 25,045 Assigned:
Capital projects 401 743 Other purposes 13 Unassigned (7,331)
Total fund balances 5,921 8,577 5,279 3,731 53,807 Total liabilities, deferred inflows of resources, and fund balances $ 26,734 $ 9,003 $ 6,726 $ 108,552 See accompanied independent auditors' report 90
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes In Fund Balances (Deficit)
Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands)
Gas Tax Community Community Sewer and and Workforce Development Services Storm Drain Roads Development Block Grant Facilities Construction Revenues:
Licenses, fees and permits $ 41 $ 2,326 $ 1,103 Intergovernmental revenues 35,361 $ 4,005 $ 3,628 284 Charges for services 174 Use of money and property 278 314 198 97 Other 13 790 233 Total revenues 35,867 4,005 4,732 3,041 1,200 Expenditures:
Current:
City Attorney 120 Police Fire Community Development 3,959 1,123 Planning 1,434 Public Works 6,264 361 Community Services 487 188 Convention, Sports and Entertainment Capital outlay 40,469 452 645 285 Debt service:
Principal retirement 250 605 Interest charges 478 Total expenditures 46,983 3,959 4,699 833 646 Excess (deficiency) of revenues over (under) expenditures (11,116) 46 33 2,208 554 Other financing sources (uses):
Transfers in 1,327 Transfers out Issuance of loan payable 26,250 Total other financing sources (uses) 27,577 Net change in fund balances (deficit) 164,61 64 33 2,208 554 Fund balances (deficits) at beginning of year 225 (3 46 4,612 6,147
$ 16,686 $ 13 $ 79 $ 6,820 $ 6,701 Fund balances at end of year See accompanied independent auditors' report 91
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands) (continued)
Anaheim Anaheim Resort Tourism Narcotic Maintenance Improvement Asset Grants District District Forfeiture Total Revenues:
Licenses, fees and permits $ 38 $ 3,508 Intergovernmental revenues 14,228 $ 12,497 $ 4,848 62,354 Charges for services $ 4,415 17,086 Use of money and property 132 (8) 40 42 1,093 Other 454 4 1,494 Total revenues 14,852 4,411 12,537 4,890 85,535 Expenditures:
Current:
City Attorney 120 Police 6,976 2,301 9,277 Fire 1,054 1,054 Community Development 2,744 7,826 Planning 1 1,435 Public Works 3,622 31 10,278 Community Services 186 861 Convention, Sports and Entertainment 9,279 9,279 Capital outlay 1,439 5,953 2,739 51,982 Debt service:
Principal retirement 129 984 Interest charges 78 556 Total expenditures 12,399 3,622 15,264 5,247 93,652 Excess (deficiency) of revenues over (under) expenditures 2,453 789 (2,727) (357) (8,117)
Other financing sources (uses):
Transfers in 200 1,527 Transfers out (151) (94) (245)
Issuance of loan payable 4,000 30,250 Total other financing sources (uses) (151) 200 3,906 31,532 Net change In fund balances 2,302 989 1,179 (357) 23,415 Fund balances at beginning of year 3,619 7,588 4,100 4,088 30,392 Fund balances at end of year E -5,921 $ 8,577 $ 5,279 3,731 $ 53,807 See accompanied independent auditors' report 92
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Nonmajor Special Revenue Funds Year Ended June 30, 2013 (in thousands)
Gas Tax and Roads Workforce Development Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits $ 35 $ 41 $ 6 Intergovernmental revenues 76,501 35,361 (41,140) $ 4,933 $ 4,005 $ (928)
Charges for services 268 174 (94)
Use of money and property 278 278 Other 8 13 5 Total revenues 76,812 35,867 (40,945) 4,933 4,005 (928)
Expenditures:
City Attorney Police Fire Community Development 4,849 3,959 (890)
Planning 36 4 (32)
Public Works 73,379 46,979 (26,400)
Community Services Convention, Sports and Entertainment Total expenditures 73,415 46,983 (26,432) 4,849 3,959 (890)
Excess (deficiency) of revenues over (under) expenditures 3,397 (11,116) (14,513 84 46 (38)
Other financing sources (uses):
Transfers in 111 1,327 1,216 Transfers out Issuance of loan payable 26,250 26,250 Total other financing sources (uses) 26,361 27,577 1,216 Net change in fund balances 29,758 16,461 (13,297) 84 46 (38)
Fund balances at beginning of year 225 225 (33} {33)
Fund balances at end of year $ 29,983 $ 16,686 $ (13,297) $ 51 $ 13 $ (38)
See accompanied independent auditors' report 93
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands) (continued)
Community Development Block Grant Community Services Facilities Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits $ 2,326 $ 2,326 Intergovernmental revenues $ 7,330 $ 3,628 $ (3,702) $ 4,835 284 (4,551)
Charges for services 393 (393)
Use of money and property 223 314 91 41 198 157 Other 326 790 464 233 233 Total revenues 7,879 4,732 (3,147) 5,269 3,041 (2,228)
Expenditures:
City Attorney 120 120 Police Fire Community Development 5,514 2,658 (2,856)
Planning 1,471 1,434 (37)
Public Works Community Services 774 487 (287) 5,704 833 (4,871)
Convention, Sports and Entertainment Total expenditures 7,879 4,699 (3,180) 5,704 833 (4,871)
Excess (deficiency) of revenues over (under) expenditures 33 33 (435) 2,208 2,643 Other financing sources (uses):
Transfers in Transfers out Issuance of loan payable Total other financing sources (uses)
Net change in fund balances 33 33 (435) 2,208 2,643 Fund balances at beginning of year 46 46 4,612 4,612 Fund balances at end of year $ 46 7 79 ý33 $ 4,177 $ 6,820 $ 2,643 See accompanied independent auditors' report 94
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands) (continued)
Sewer and Storm Drain Construction Grants Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits $ 70 $ 1,103 $ 1,033 $ 30 $ 38 $ 8 Intergovernmental revenues 24,737 14,228 (10,509)
Charges for services Use of money and property 97 97 20 132 112 Other 8 454 446 Total revenues 70 1,200 1,130 24,795 14,852 (9,943)
Expenditures:
City Attorney Police 14,572 8,227 (6,345)
Fire 2,345 1,189 (1,156)
Community Development 7,855 2,744 (5,111)
Planning Public Works 774 646 (128)
Community Services 416 239 (177)
Convention, Sports and Entertainment Total expenditures 774 646 (128) 25,188 12,399 (12,789)
Excess (deficiency) of revenues over (under) expenditures (704) 554 1,258 (393) 2,453 2,846 Other financing sources (uses):
Transfers in (151) (151)
Transfers out Issuance of loan payable Total other financing sources (uses) (151) (1511 Net change in fund balances (704) 554 1,258 (393) 2,302 2,695 Fund balances at beginning of year 6,147 6,147 3,619 3,619 Fund balances at end of year $ 5,443 $ 6,701 1,258 3,226 $ 5,921 2,695 See accompanied independent auditors' report 95
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands) (continued)
Anaheim Resort Maintenance District Anaheim Tourism Improvement District Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits Intergovernmental revenues Charges for services $ 4,477 $ 4,415 $ (62) $ 10,958 $ 12,497 $ 1,539 Use of money and property 67 (8) (75) 32 40 8 Other 4 4 Total revenues 4,548 4,411 (137) 10,990 12,537 1,547 Expenditures:
City Attorney Police Fire Community Development Planning 164 164 Public Works 4,983 3,622 (1,361) 5,821 5,821 Community Services Convention, Sports and Entertainment 9,279 9,279 Total expenditures 4,983 3,622 (1,361) 15,264 15,264 Excess (deficiency) of revenues over (under) expenditures (435) 789 1,224 (4,274) (2,727) 1,547 Other financing sources (uses):
Transfers in 200 200 Transfers out (110) (94) 16 Issuance of loan payable 4,000 4,000 Total other financing sources (uses) 200 200 3,890 3,906 16 Net change in fund balance (235) 989 1,224 (384) 1,179 1,563 Fund balances at beginning of year 7,588 7,588 4,100 4,100 Fund balances at end of year $ 7,353 $ 8,577 $ 1,224 $ 3,716 $ 5,279 $ 1,563 See accompanied independent auditors' report 96
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual -- All Nonmajor Special Revenue Funds Year Ended June 30, 2013 (inthousands) (continued)
Narcotic Asset Forfeiture Final Variance Budgeted Actual with Final Amounts Amounts Budget Revenues:
Licenses, fees and permits Intergovernmental revenues $ 3,040 $ 4,848 $ 1,808 Charges for services Use of money and property 65 42 (23)
Other Total revenues 3,105 4,890 1,785 Expenditures:
City Attorney Police 6,730 5,247 (1,483)
Fire Community Development Planning Public Works Community Services Convention, Sports and Entertainment Total expenditures 6,730 5,247 (1,483)
Excess (deficiency) of revenues over (under) expenditures (3,625) (357) 3,268 Other financing sources (uses):
Transfers in Transfers out Issuance of loan payable Total other financing sources (uses)
Net change in fund balance (3,625) (357) 3,268 Fund balances at beginning of year 4,088 4,088 Fund balances at end of year $463 $ 3,731 $ 3,268 See accompanied independent auditors' report 97
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Debt Service Funds June 30, 2013 (in thousands)
General Obligation Municipal Anaheim Resort Bonds Facilities Improvements Total ASSETS Cash and cash equivalents $ 226 $ 3 $ 229 Investments 469 6 475 Accrued interest receivable 1 21 22 Due from other governments 7 7 Restricted cash and cash equivalents 63 $ 22,032 22,095 Restricted investments 2,266 36,645 38,911 Total assets $ 7 703 2,359 $ 58,677 $ 61,739 LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable $ 5 $ 109 $ 114 Total liabilities 5 109 114 Fund balances:
Restricted for debt service $ 703 2,354 $ 58,568 61,625 Total fund balances 703 2,354 58,568 61,625 Total liabilities and fund balances $7703 $ 2,359 $ 58,677 $ 61,739 See accompanied independent auditors' report 98
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year Ended June 30, 2013 (inthousands)
General Obligation Municipal Anaheim Resort Bonds Facilities Improvements Total Revenues:
Property taxes $ 730 $ 730 Intergovernmental revenues 6 6 Use of money and property 4 $ 125 $ 1 130 Total revenues 740 125 1 866 Expenditures:
Current:
Finance 130 130 Public Works I 1 Debt service:
Principal retirement 580 1,494 14,705 16,779 Interest charges 118 856 17,828 18,802 Total expenditures 699 2,350 32.663 35.712 Excess (deficiency) of revenues over (under) expenditures 41 (2,225) (32,662) (34,846)
Other financing sources:
Transfers in 2,185 40,888 43,073 Total other financing sources 2,185 40,888 43,073 Net change In fund balances 41 (40) 8,226 8,227 Fund balances at beginning of year 662 2,394 50,342 53,398 Fund balances at end of year $7 03 2,354 $ 58,568 $ 61,625 See accompanied independent auditors' report 99
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Debt Service Funds Year Ended June 30, 2013 (inthousands)
General Obligation Bonds Municipal Facilities Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Property taxes $ 696 $ 730 $ 34 Intergovernmental revenues 6 6 Use of money and property 6 4 (2) $ 125 $ 125 Total revenues 708 740 32 125 125 Expenditures:
Finance Public Works 699 699 599 599 Convention, Sports and Entertainment 1,751 1,751 Total expenditures 699 699 2,350 2,350 Excess (deficiency) of revenues over (under) expenditures 9 41 32 (2,225) (2,225)
Other financing sources:
Transfers in 2,185 2,185 Total other financing sources 2,185 2,185 Net change in fund balances 9 41 32 (40) (40)
Fund balances at beginning of year 662 662 2,394 2,394 Fund balances at end of year 671 $ 703 $ 32 $ 2,354 $ 2,354 See accompanied independent auditors' report 100
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual -- All Debt Service Funds Year Ended June 30, 2013 (inthousands) (continued)
Anaheim Resort Improvements Final Variance Budgeted Actual with Final Amounts Amounts Budget Revenues:
Property taxes Intergovernmental revenues Use of money and property $ 29 $ 1 $ (28)
Total revenues 29 (28)
Expenditures:
Finance 32,663 32,663 Public Works Convention, Sports and Entertainment Total expenditures 32.663 32.663 Excess (deficiency) of revenues over (under) expenditures (32.634) (32,662) (28)
Other financing sources:
Transfers in 36,701 40,888 4,187 Total other financing sources 36,701 40,888 4,187 Net change in fund balances 4,067 8,226 4,159 Fund balances at beginning of year 50,342 50,342 Fund balances at end of year $ 54,409 $ 58,568 4,159 See accompanied independent auditors' report 101
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2013 (inthousands)
Transportation Development Improvement Impact Other Capital Mello-Roos Projects Projects Improvements Projects Total ASSETS Cash and cash equivalents $ 178 $ 6,574 $ 931 $ 1,881 $ 9,564 Investments 370 13,628 1,929 3,899 19,826 Accrued interest receivable 24 27 21 72 Due from other funds 29 6,960 6,989 206 Due from other governments 14,632 14,838 Restricted cash and cash equivalents 121 19,396 19,517 Due from the Successor Agency 7,928 7,928 Total assets 20,255 $, 17,896 25,403 $ 78,734 LIABILITIES Accounts payable $ 8,043 $ 604 $ 5 $ 333 $ 8,985 Wages payable 13 7 2 22 Due to other funds 6,989 6,989 Total liabilities 15,045 611 5 335 15,996 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 3,929 3,929 Unavailable resources - due from Successor Agency 7,928 7,928 Total deferred inflows of resources 3.929 7,928 11,857 FUND BALANCES (DEFICITS)
Restricted:
Capital projects 2,664 2,664 Development Impact projects 19,644 25,068 44,712 Streets, roads and transportation improvement projects 106 106 Assigned:
Capital projects 7,299 7,299 Unassigned (3,900) (3,900)
Total fund balances (deficit) (3,794) 19,644 9,963 25,068 50,881 Total liabilities, deferred inflows of resources, and fund balances (deficit) 15.180 $ 20,255 17,896 25,403 $ 78,734 See accompanied independent auditors' report 102
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)
Nonmajor Capital Projects Funds Year Ended June 30, 2013 (in thousands)
Transportation Development Improvement Impact Other Capital Mello-Roos Projects Projects Improvements Projects Total Revenues:
Licenses, fees and permits $ 809 $ 809 Intergovernmental revenues $ 47,056 777 47,833 Use of money and property (83) (23) $ 506 400 Other 1,551 507 $ 42 2,100 Total revenues 46,973 3,114 1,013 42 51,142 Expenditures:
Current:
Community Development 234 234 Public Works 1,424 96 63 1,583 Community Services 591 86 677 Capitol outlay 38,542 3,679 4,279 46,500 Debt service:
Principal retirement 750 435 1,185 Interest charges 450 450 Total expenditures 39,966 5,116 1,205 4,342 50,629 Excess (deficiency) of revenues over (under) expenditures 7,007 (2,002) (192) (4,300) 513 Other financing sources (uses):
Transfers In 250 250 Transfers out (1,228) (1,228)
Issuance of loan payable 1,250 1,250 Total other financing sources (uses) 1,250 250 (1,228) 272 Net change in fund balances (deficit) 7,007 (752) 58 (5,528) 785 Fund balances (deficit) at beginning of year (10,801) 20,396 9,905 30,596 50,096 Fund balances (deficit) at end of year $13,794) $ 19,644 9,963 50,881 See accompanied independent auditors' report 103
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit)
Budget and Budgetary Basis Actual -- All Capital Projects Funds Year Ended June 30, 2013 (in thousands)
Transportation Improvement Projects Development Impact Projects Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits $ 500 $ 809 $ 309 Intergovernmental revenues $ 157,230 $ 47,056 $ (110,174) 205 777 572 Charges for services Use of money and property (83) (83) 100 (23) (123)
Other Total revenues 157,230 46,973 (110,257) 805 1,563 758 Expenditures:
Fire 90 (90)
Community Development Planning 21 12 (9)
Public Works 157,570 39,954 (117,616) 4,339 4,205 (134)
Community Services 2,160 911 (1,249)
Total expenditures 157,591 39,966 (117,625) 6,589 5,116 (1,473)
Excess (deficiency) of revenues over (under) expenditures (361) 7,007 7,368 (5,784) (3,553) 2,231 Other financing sources (uses):
Transfers in Transfers out Issuance of loan payable 1,250 1,250 Total other financing sources 1,250 1,250 Net change in fund balances (deficit) (361) 7,007 7,368 (4,534) (2,303) 2,231 Fund balances (deficit) at beginning of year (10,801) (10,801) 20,396 20,396 Fund balances (deficit) at end of year $ (11,162) $ (3,794) $ 7,368 $ 15,862 18,093 $ 2,231 Adjustment to reconcile to GAAP:
Expiration of transportation fee credits 1,551 Ending fund balance - GAAP basis $ 19,644 See accompanied independent auditors' report 104
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit)
Budget and Budgetary Basis Actual -- All Capital Projects Funds Year Ended June 30, 2013 (inthousands)
Other Capital Improvements Mello-Roos Projects Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Licenses, fees and permits Intergovernmental revenues Charges for services Use of money and property $ 449 $ 506 $ 57 Other 435 507 72 $ 42 $ 42 Total revenues 884 1,013 129 42 42 Expenditures:
Fire Community Development 1,119 1,119 Planning Public Works 30,596 4,342 (26,254)
Community Services 463 86 (377)
Total expenditures 1,582 1,205 (377) 30,596 4,342 (26,254)
Excess (deficiency) of revenues over (under) expenditures (698) (192) 506 (30,596) (4,300) 26,296 Other financing sources (uses):
Transfers in 250 250 Transfers out (100) 100 (1,228) (1,228)
Issuance of loan payable Total other financing sources (uses) 150 250 100 (1,228) (1,228)
Net change in fund balances (deficit) (548) 58 606 (30,596) (5,528) 25,068 Fund balances (deficit) at beginning of year 9,905 9,905 30,596 30,596 Fund balances (deficit) at end of year $ 9,357 $ 9,963 $ 606 $ 25,068 $ 25,068 See accompanied independent auditors' report 105
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Inera Sevc Fud
INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City departments on a cost-reimbursement basis (including depreciation).
GENERAL BENEFITS AND INSURANCE FUND - Established to account for employee compensated absences, retirement and health benefits, and self-insurance programs.
MOTORIZED EQUIPMENT FUND - Established to account for motorized equipment used by City departments.
INFORMATION AND COMMUNICATION SERVICES FUND - Established to account for data processing and communication services to City departments.
MUNICIPAL FACILITIES MAINTENANCE - Established to account for City building maintenance services and equipment used by City departments.
CITY OF ANAHEIM Combining Statement of Net Position Internal Service Funds June 30, 2013 (in thousands)
General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total ASSETS Current assets:
Cash and cash equivalents $ 19,490 $ 1,698 $ 2,382 $ 1,469 $ 25,039 Investments 40,402 3,521 4,939 3,045 51,907 Accounts receivable, net 4,391 24 - 33 4,448 Accrued interest receivable 145 13 9 12 179 Note receivable 41 41 Interfund receivable 13 104 117 Inventories 749 749 Prepaid and other assets 58 756 814 Total current assets 64,540 6,865 7,330 4,559 83,294 Noncurrent assets:
Accounts receivable, less current portion 2,147 2,147 Interfund receivable, less current portion 49 49 Net other post-employment benefits (OPEB) asset 11,017 11,017 Capital assets:
Buildings, structures and improvements 3,230 4,607 7,837 Machinery and equipment 81 36,083 18,795 2,306 57,265 Less accumulated depreciation (81) (28,212) (14,282) (4,793) (47,368)
Capital assets, net 11,101 4,513 2,120 17,734 Total noncurrent assets 13,213 11,101 4,513 2,120 30,947 Total assets 77,753 17,966 11,843 6,679 114,241 LIABILITIES Current liabilities:
Accounts payable 3,870 834 1,870 1,007 7,581 Wages payable 2,858 39 6 41 2,944 Compensated absences 13,737 13,737 Self-insurance liability 7,916 7,916 Long-term debt 892 892 Unearned revenues 1,790 1,790 Total current liabilities 30,171 873 2,768 1,048 34,860 Noncurrent liabilities:
Compensated absences, less current portion 4,190 4,190 Self-insurance liability, less current portion 31,506 31,506 Long-term debt, less current portion 477 477 Total noncurrent liabilities 35,696 477 36,173 Total liabilities 65,867 873 3,245 1,048 71,033 NET POSITION Net investment in capital assets 11,101 3,144 2,120 16,365 Unrestricted 11,886 5,992 5,454 3,511 26,843 Total net position $ 11,886 $ 17,093 $ 8,598 $ 5,631 $ 43,208 107 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Statement of Revenues, Expenses and Changes In Net Position Internal Service Funds Year Ended June 30, 2013 (inthousands)
General Information Benefits and Municipal and Motorized Communication Facillties Insurance Equipment Services Maintenance Total Operating revenues:
Charges for services $ 125,365 $ 10,228 $ 14,083 $ 8,018 $ 157,694 Other 66 20 33 119 Total operating revenues 125,431 10.248 14,083 8,051 157,813 Operating expenses:
Salaries and wages 3,593 3,558 690 2,949 10,790 Maintenance and operations 2,168 5,390 12,933 5,979 26,470 Insurance premiums and claims 9,500 9,500 Compensated absences and other benefits 112,710 112,710 Depreciation 2,183 2,115 181 4,479 Total operating expenses 127,971 11,131 .15,738 9,109 163,949 Operating loss (2,540) (883) (1,655) (1,058) (6,136)
Nonoperating income (expenses):
Investment loss (162) (10) (55) (9) (236)
Interest expense (87) (87)
Gain from disposal of capital assets 299 299 Total nonoperating income (162) 289 (142) (9) (24)
Loss before transfers (2,702) (594) (1.797) (1,067) (6,160)
Transfers out (61) (61)
Change in net position (2,702) (655) (1,797) (1,067) (6,221)
Net position at beginning of year 14,588 17,748 10,395 6,698 49,429 Net position at end of year $ 1 ý1,886 $ 17,093 $ 8,598 $ 43,208 See accompanied independent auditors' report 108
CITY.OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2013 (inthousands)
General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total Cash flows from operating activities:
Receipts from interfund services provided $ 125,365 $ 10,228 $ 14,083 $ 8,018 $ 157.694 Payments to suppliers (886) (5,494) (12,759) (4,822) (23,961)
Payments for salaries and wages to employees (3,933) (3,561) (695) (2,944) (11,133)
Payments for interfund services used (1,456) (372) (898) (540) (3,266)
Payments for insurance premiums and claims (9,210) (9,210)
Payments for compensated absences and other benefits (115,244) (115,244)
Other payments (44) (4) (48)
Net cash provided by (used for) operating activities (5,408) 797 (269) (288) (5,168)
Cash flows from noncapital financing activities: 13 Receipt of interfund balances 13 Payment of interfund balances (10) (10)
Transfer out (61) (61)
Net cash provided by (used for) noncapital financing activities 3 (61) (58)
Cash flows from capital and related financing activities:
Proceeds from sale of capital assets 357 357 Capital purchases (2,466) (112) (899) (3,477)
Principal payments on long-term debt (1,112) (1,112)
Interest payments (87) (87)
Net cash used for capital and related financing activities (2,109) (1,311) (899) (4,319)
Cash flows from investing activities:
Purchase of investment securities (17,763) (1,000) (1,595) (864) (21,222)
Proceeds from sale and maturity of investment securities 16,845 1,468 2,059 1,270 21,642 Interest received 671 69 56 56 852 Net cash provided by (used for) investing activities (247) 537 520 462 1,272 Decrease in cash and cash equivalents (5,652) (836) (1,060) (725) (8,273)
Cash and cash equivalents at beginning of the year 25,142 2,534 3,442 2,194 33,312 Cash and cash equivalents at end of the year $ 19,490 $* 1,698 $ 2,382 $ 1,469 $ 25,039 See accompanied independent auditors' report 109
CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2013 (in thousands)
General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total Reconciliation of operating loss to net cash used for operating activities:
Operating loss $ (2,540) $ (883) $ (1,655) $ (1,058) $ (6,136)
Adjustment to reconcile operating loss to net cash provided by (used for) operating activities:
Depreciation 2,183 2,115 181 4,479 Changes in assets and liabilities that provided (used) cash Accounts receivable (973) (24) (33) (1,030)
Inventories (24) (24)
Note receivable 15 15 Prepaid and other assets (756) (756)
Accounts payable (472) 304 (724) 617 (275)
Wages payable (379) (3) (5) 5 (382)
Unearned revenues 291 291 Compensated absences (177) (177)
Self-Insurance liability 79 79 Other post retirement employment benefits (OPEB) asset (1,252) (1,252)
Total adjustments (2,868) 1,680 1,386 770 968 Net cash used for operating activities $ (5,408) $ 797 $ (269) $ (288) $ (5,168)
Schedule of noncash financing and investing activities:
Capital assets financed through capital leases $ 787 $ 787 Decrease in fair value of investments $ (732) $ (64) (102) $ (58) (956)
See accompanied independent auditors' report 110
Fiucar Fud
CITY OF ANAHEIM Statement of Changes in Fiduciary Assets and Liabilities Agency Fund -- Mello-Roos Year Ended June 30, 2013 (inthousands)
Beginning Ending Balance Additions Deductons Balance ASSETS Restricted cash and cash equivalents $ 5,085 $ 4,933 $ (4,972) $ 5,046 Restricted investments 3,256 3,256 Due from other governments 48 4,868 (4.859) 57 Total assets 8 8,389 9,801 L__(9,831) 8,359 LIABILITIES Due to bond holders $ 8,389 $ 4,942 $ (4,972) $ 8,359 See accompanied independent auditors' report III
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St tsia Secio
STATISTICAL SECTION The Statistical Section is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government, It is Intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary Information Included in the Financial Section.
CITY OF ANAHEIM STATISTICAL INFORMATION (Unaudited)
The Statistical Section is included to provide financial statement users with additional historical perspective, context, and detail for them to use In evaluating the information contained within the financial statements, notes to the financial statements, and required supplementary information with the goal of providing the user a better understanding of the City's economic condition. Page Contents Financial trends These schedules contain information to help the reader understand how the City's financial performance and well-being hove changed over time.
Net Position by Component - Last Ten Fiscal Years 114 Changes in Net Position - Last Ten Fiscal Years 115 Governmental Activities Tax Revenues by Source - Last Ten Fiscal Years 117 Fund Balances of Governmental Funds - Last Ten Fiscal Years 118 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 119 Revenue capacity These schedules contain information to help the reader assess the City's most significant local revenue sources.
General Government Tax Revenues by Source - Last Ten Fiscal Years 120 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 121 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 122 Principal Properly Tax Payers - Current Year and Nine Years Ago 123 Property Tax Levies and Collections - Last Ten Fiscal Years 124 Debt capacity These schedules contain Information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issued additional debt in the future.
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 125 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 126 Direct and Overlapping Government Activities Debt - As of June 30, 2013 127 Legal Debt Margin information - Last Ten Fiscal Years 129 Pledged-Revenue Coverage - Last Ten Fiscal Years 130 Demographic and economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
Demographic and Economic Statistics - Last Ten Fiscal Years 134 Principal Employers - Current and Nine Years Ago 135 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.
Full-Time Equivalent City government Employees by Function / Program - Last Ten Fiscal Years 137 Operating Indicators by Function - Last Ten Fiscal Years 138 Capital Assets Statistics by Function - Last Ten Fiscal Years 140 City of Anaheim Map 142 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 113
CITY OF ANAHEIM Net Position by Component Last Ten Fiscal Years (In thousands)
(Accrual basis of accounting)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Governmental Activities Net investment in capital assets $ 894,625 $ 831,430 $ 832,951 $ 794,164 $ 751,910 $ 731,726 $ 665,828 $ 668,628 $ 613,300 $ 584,875 Restricted 196,853 190,868 182,011 150,750 154,306 87,566 69,949 99,443 87,505 111,344 Unrestricted 30,341 16,760 (124,422) (121,2831 (92,773) (70,621) (12,765) (40,946) (35,6521 (46,438)
Total Governmental Activities $ 1,121,819 1,039,058 890,540 823,631 813,443 748,671 723,012 727,125 665,153 649,781 Business-type Activities Net investment in capital assets 787,459 780,093 779,224 756,020 747,379 746,450 701,088 656,377 693,240 668,663 Restricted 71,131 61.235 54,626 49,325 45.493 47,406 38,572 36,008 28,855 26,187 Unrestricted 121,083 112,159 115,445 130,812 145,269 165,196 203,967 215,685 229,051 242,888 Total Business-type Activities 979,673 953,487 949,295 936,157 938,141 959,052 943,627 908,070 951,146 937,738 Total Government Net Investment in capital assets 1,682,084 1,611,523 1,612,175 1,550,184 1,499,289 1,478,176 1,366,916 1,325,005 1,306,540 1,253,538 Restricted 267,984 252,103 236,637 200,075 199,799 134,972 108,521 135,451 116,360 137,531 Unrestricted 151,424 128,919 (8,977) 9,529 52.496 94,575 191,202 174,739 193,399 196,450 Total Government $ 2,101,492 $1,992,545 $ 1,839,835 $ 1,759,788 $ 1,751,584 $ 1,707,723 $ 1,666,639 $ 1,635,195 $ 1,616,299 $ 1,587,519 Note: Certain reclassifications have been made to prior year data to conform to fiscal year 2013 presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 114
CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (Inthousands)
(Accrual basis of accounting)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Program Revenues Governmental activities:
Charges for services General government $ 1,670 $ 1,872 $ 1,872 $ 1,708 $ 1,890 $ 2,088 $ 1,238 $ 1,385 $ 1,442 $ 1,413 Police 9,859 10,122 10,435 10,127 10,089 10,235 9,715 10,477 9,840 7,460 Fire 9,912 9,431 9,518 9,369 9,122 9,850 9,070 8,942 7,909 6,879 Community Development 9,151 7,281 8,143 7,306 5,459 6,212 6,713 6,122 4,667 9,972 Planning 6,404 5,327 6,263 6,453 7,724 9,084 10,778 9,031 6,994 3,739 Public Works 14,012 11,401 9,837 7,619 7,421 8,619 8,234 11,196 6,544 5,501 Community Services 3,556 3,386 4,024 4,561 4,833 4,855 4,043 18,421 4,985 4,490 Convention, Sports and Entertainment 9,574 9,142 4,356 202 200 218 200 200 200 200 Total charges for services 64,138 57,962 54,448 47,345 46,738 51,161 49,991 65,774 42,581 39,654 Operating grants and contributions 112,507 108,620 124,358 121.731 110,200 100,393 98,699 88,076 78,846 82,727 Capitol grants and contributions 71,472 44,184 70,080 31,828 66,347 30,361 42,997 28,804 20,906 11,704 Governmental activities program revenues 248,117 210,766 248,886 200,904 223,285 181,915 191,687 182,654 142,333 134,085 Business-type activities:
Charges for services Electric Utility 451,958 397,931 381,496 377,387 365,526 351.160 310,074 322,845 284,740 291,723 Water Utility 60,785 57,748 55,598 56,368 50,807 49,125 49.600 46,926 43,427 44,395 Sanitation Utility 57,230 56,630 56,359 56.023 55,424 54,017 53,215 49,397 46,480 48,085 Golf Courses 4,759 4,802 4,711 5,168 5,634 5,947 6,022 5,736 5,394 5,546 Convention, Sports and Entertainment 29,656 29,389 27,981 30,797 26,987 31,197 32.308 27,357 27,412 28,146 Total charges for services 604,388 546,500 526,145 525,743 504,378 491,446 451,219 452,261 407,453 417,895 Operating grants and contributions 952 1,101 746 1,990 965 1,194 1,160 2,556 2,473 1,471 Capital grants and contributions 6,698 8,954 12,667 5,622 6,620 12,332 4,808 5,749 11,513 7,468 Business-type activities program revenues 612,038 556,555 539,558 533,355 511,963 504,972 457,187 460,566 421,439 426,834 Total government program revenues 860,155 767,321 788,444 734,259 735,248 686,887 648,874 643,220 563,772 560.9 19 Expenses Governmental activities:
General government 13,275 11,617 10,911 10,917 12,144 12,610 10,951 7,394 8,943 7,582 Police 124,556 117,840 119,504 125,121 121,162 122,883 115,714 98,484 91,713 77,541 Fire 58,508 58,027 56,393 58,229 57,768 56,434 50,727 50,957 46,596 37,610 Community Development 82,769 95,683 105,937 117,621 109,523 105,651 93,089 87,814 83,183 86,542 Planning 16,917 15,648 15,627 16,822 17,057 17,199 16,107 14,493 13,206 12,628 Public Works 44,740 41,228 44,109 39,017 47,226 43,680 44,473 42,029 39,463 41,672 Community Services 28,925 28,282 30,958 35,372 37,704 39,033 36,827 31,712 28,314 27,050 Public Utilities 2,405 2,315 2,218 1,952 1,515 2,128 1,800 1,704 1,557 1,566 Convention, Sports and Entertainment 13,935 13,584 13,633 9,931 10,069 10,781 10,539 8,652 7,703 7,536 Interest on long-term debt 35,880 42,824 47,985 47,610 47,779 45,502 51,639 46,430 47,105 48,503 Governmental Activities Expenses 421,910 427,048 447,275 462,592 461,947 455,901 431,866 389,669 367,783 348,230 See accompanied independent auditors' report15 115
CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (Inthousands)
(Accrual basis of accounting) (continued)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Expenses Business-type Activities:
Electric Utility 417,008 386,358 372,129 375,173 359,320 353,204 339,928 365,432 274,423 281,902 Water Utility 57,056 58,319 56,608 55,478 49,309 49,219 51,638 47,187 41,469 42,945 Sanitation 52,813 55,939 49,845 50,521 52,702 49,693 49,338 47,163 45,467 41,431 Golf Courses 4,473 4,114 4,256 4,436 4,495 4,810 4,365 4,433 4,062 4,278 Convention, Sports and Entertainment Venues 45,001~Q 45,278 46.6 10 47,~220 Business-type activities expense 576,351 550,008 527,500 531,562 511,313 505,218 491,879 47,83 412,641 Total government expenses 998,261 977,056 974,775 994,154 973,260 961,119 923,745 901,717 780,424 762,088 Net (Expense)/ Revenue Governmental activities (173,793) (216,282) (198,389) (261,688) (238,662) (273,986) (240,179) (207,015) (225,450) (214,145)
Business-type activities 35,687 6,547 12,058 1,793 650 (246) (34,692) (51,482) 8,798 12,976 Total government, net (expense) revenue (138,106) (209,735) (186,331) (259,895) (238,012) (274,232) (274,871) (258,497) (216,652) (201,169)
General Revenues and Other Changes In Net Position Governmental activities:
Taxes:
Property taxes 64,3 11 58,896 59,053 59,689 60,806 59,592 57,937 49,415 43,636 25,589 Property tax Increments 28,678 47,040 47,731 47,115 45,719 40,710 37,341 34,984 31,650 Sales tax and use tax 65,445 59,654 54,711 51,214 56,035 62,510 64,878 66,972 60,803 55,716 Transient occupancy taxes 102,936 90,376 82,605 77,139 80,055 87,183 83,914 75,979 67,141 63,268 Motor vehicle license fees 331 1,783 1,026 1,180 1,532 1,866 2,595 2,113 21,143 Other taxes 7,756 7,272 7,288 7,288 8,041 9,529 10,337 10,817 10,175 9,561 Unrestricted Investment earnings 1,094 3,598 3,667 7,012 8,667 15,337 17,597 12,346 8,071 3,991 Other 1,857 873 614 1,175 394 2,670 1,701 5,078 1,499 1,097 Transfers 12,824 12,571 8,537 19,602 41,141 15,573 (42,874) 8,444 12,400 11,534 Extraordinary gain _____ 102,882 Governmental activities 256,554 364,800 265.2-98 -271,876 -303,434 299.q6-45 2_3_6,066 268,987 2-40,822 223,549 Business-type activities:
Unrestricted investment earnings 3,323 10,216 9,617 15,825 19,580 31,244 27,375 16,850 16,592 6,120 Other 418 1,723 Transfers ( 12,824) (12,571) (8,537) (19,602 (41,141) (15,573 42,874 (8,444) (12,400 (11,534)
Business-type activities (9,501 (235 1,080 (3,777) (21,51) 15,671 70,249 8,406 4,610 (3,691)
Total government 247,053 362,445 266,378 268,099 281,873 315,316 306,315 277,393 245,432 219,858 Change In Net Position Governmental activities 82,761 148,518 66,909 10,188 64,772 25,659 (4,113) 61,972 15,372 9,404 Business-type activities 26,186 4,192 13,138 (1,984 (20,911) 15,425 35,557 (43,076) 13,408 9,285 Total government change in net position $ 8,204 $ 4.3,86I1$ 41,084 1 31,444 $ 28,780 $ 18,689 Note: Certain reclassifications have been made to prior fiscal years' data to conform to the fiscal year 2013 presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report16 116
CITY OF ANAHEIM Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (In thousands)
(Accrual basis of accounting)
Amounts Motor Property Sales and Transient Vehicle Fiscal Property Tax Use Occupancy License Other Year Taxes Increments Taxes Taxes Fees' Taxes Total 2013 $ 64,311 $ 65,445 $ 102,936 $ 331 $ 7,756 $ 240,779 3
2012 58,896 $ 28,6782 59,654 90,376 7,272 244,876 2011 59,053 47,040 54,711 82,605 1,783 7,288 252,480 2010 59,689 47,731 51,214 77,139 1,026 7,288 244,087 2009 60,806 47,115 56,035 80,055 1,180 8,041 253,232 2008 59,592 45,719 62,510 87,183 1,532 9,529 266,065 2007 57,937 40,710 64,878 83,914 1,866 10,337 259,642 2006 49,415 37,341 66,972 75,979 2,595 10,817 243,119 2005 43,636 34,984 60,803 67,141 2,113 10,175 218,852 2004 25.589 31,650 55,716 63,268 21,143 9,561 206,927
'The decrease in motor vehicle license fees starting from fiscal year 2005 is due to the shifting of revenue from motor vehicle license fees category to the property tax category.
This was part of the State of California 2004 Budget Act.
2 The decrease in Property tax increments from fiscal year 2012 was due to the dissolution of Redevelopment Agency on February 1, 2012.
3 Motor Vehicle License Fees allocation was eliminated per the fiscal year 2012 State Budget.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the fiscal year 2011 presentation.
Source: Finance Department, City of Anaheim See accompanied independenl auditors' report 117
CITY OF ANAHEIM Fund Balances of Governmental Funds Last Ten Fiscal Years (Inthousands)
(Modified accrual basis of accounting)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 General Fund Nonspendable $ 2,531 $ 3,082 $ 3,626 Restricted 1,766 982 582 Committed 788 Assigned 6,879 320 141 Unassigned 26,920 22,636 22,139 Reserved $ 4,092 $ 4,530 $ 5,001 $ 8,525 $ 9,701 $ 9,892 $ 10,225 Unreserved - designated 293 Unreserved - undesignated 29,490 47,729 37,347 47,409 44,978 39,179 34,458 Total General fund 38,884 27,020 26,488 33,582 52,259 42,348 55,934 54,679 49,071 44,976 Housing Authority Fund Nonspendable 38 42 Restricted 32,234 29,935 7,778 Assigned 11,823 11,237 9,922 Unassigned Reserved 1,373 1,830 830 162 Unreserved - undesignated 11,603 5,669 6,474 7,935 3,932 5,682 5,525 Total Housing Authority Fund 44,095 41,172 17,742 12,976 7,499 7,304 8,097 3,932 5,682 5,525 Nonmajor Governmental Funds Nonspendable 4,619 1 631 Restricted 164,870 158,933 241,674 Assigned 8,055 7,400 7,761 Unassigned (11,231) (32,448) (34,293)
Reserved 130,313 142,760 138,402 120,885 110,289 76,568 91,787 Unreseirved - designated, reported in:
Special revenue funds 7,349 7,211 6,809 2,415 9,102 14,974 7,993 Debt service funds 156 4,433 1,656 2,276 1,137 1,457 Capital projects funds 31,899 41,544 32,809 38,430 45,495 36,497 24,538 Unreserved - undesignated, reported in:
Special revenue funds 14,350 5,342 4,199 4,183 14,902 25,955 27,016 Capital projects funds (3,376) (7,037) (15,551) (25,687) (22,787) (4,735)
Total nonmajor governmental funds 166,313 133,886 215,773 180,691 194,253 168,324 142,502 158,138 150,716 151,334 Total governmental funds' $ 249,292 $ 202,078 $ 260,003 $ 227,249 $ 254,011 $ 217,976 $ 206,533 $ 216,749 $ 205,469 $ 201,835
'The City implemented Governmental Accounting Standards Board Statement No 54 (GASB 54) for the Fiscal Year Ended June 30, 2011. Fund Balance Classifications prior to the implementation of GASB 54 isnot available.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 118
CITY OF ANAHEIM Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Inthousands)
(Modified accrual basis of accounting)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Revenues Property taxes 64,311 $ 58,896 $ 59,053 $ 59,689 $ 60,806 $ 59,592 $ 57,937 $ 49,415 $ 43,636 $ 25,589 Property tax increments 28,678 47,040 47,731 47,115 45,719 40,710 37,341 34,984 31,650 Sales and use taxes 62,793 58,589 55,034 48,210 56,493 64,296 65,695 64,993 59,000 54,559 Transient occupancy taxes 102,936 90,376 82,605 77,139 80,055 87,183 83,914 75,979 67,141 63,268 Other taxes 7,078 6,401 6,486 6,303 6,451 6,753 7,531 7,862 7,542 7,095 Licenses, fees, and permits 22,305 17,067 18,772 21,580 21,062 24,705 37,991 40,625 18,749 15,578 Intergovernmental revenues 186,018 143,348 150,394 141,418 158,729 135,072 112,593 104,705 102,423 109,523 Charges for services 30,883 29,672 24,408 18,351 17,874 17,730 16,799 16,216 15,459 18,565 Fines, forfeits, and penalties 2,907 3,515 3,304 3,255 3,409 3,767 3,689 3,464 3,454 2,812 Use of money and property 8,058 7,657 10,159 10,236 9,293 16,923 18,208 13,223 9,144 8,408 Other 8,926 6,617 43,645 4,009 10,137 3,755 7,601 18,164 6,143 3,490 Total revenues 496,215 450,816 500,900 437,921 471,424 465,495 452,668 431,987 367,675 340,537 Expenditures General government 18,270 16,502 16,055 15,822 16,953 16,325 15,354 13,667 12,276 11,370 Police 117,702 112,656 114,678 115,379 112,057 115,195 109,467 94,602 86,529 74,356 Fire 56,127 55,886 55,802 55,713 55,966 54,685 48,201 48,383 44,182 36,277 Community Development 86,282 95,352 110,138 126,590 112,406 104,991 94,789 89,098 83,384 87,778 Planning 15,785 14,408 14,560 15,173 15,489 15,949 14,762 13,907 12,313 11,904 Public Works 25,387 22,861 27,087 19,957 29,321 25,810 26,820 24,646 22,248 25,224 Community Services 25,268 24,618 27,813 31,311 33,572 35,203 32,788 28,753 25,724 25,203 Public Utilities 2,398 2,313 2,220 1,939 1,507 2,120 1,791 1,704 1,557 1,566 Convention, Sports and Entertainment 10,002 9,725 9,917 6,369 6,699 7,390 7,399 6,131 5,140 5,353 Capital outlay 98,601 55,505 70,918 62,422 52,229 60,906 76,161 77,738 41,301 32,195 Debt service:
Principal 18,948 16,294 12,219 12,777 16,085 27,472 18,065 19,032 10,134 9,391 Interest charges 19,808 26,927 33,032 33,509 34,830 28,324 41,187 39,037 38,681 38,630 Debt issuance costs 227 70 5,182 4,017 Total expenditures 4958 4 494,666 496,961 487,184 499,552 490,801 456,698 383,469 359,247 Revenues over (under) expenditures 1,637 (2,231) 6,234 (59,040) (15,760) (34,057) (38,133) (24,711) (15,794) (18,710)
Other Financing Sources (Uses)
Transfers in 73,470 131,093 99,571 83,498 121,987 299,410 101,249 95,535 99,166 73,939 Transfers out (59,393) (119,552) (86,621) (59,970) (76,304) (288,985) (91,028) (84,325) (88,277) (62,970)
Issuance of refunding bonds 5,084 201,680 253,134 Payments to refunded bond escrow agent (5,683) (171,222) (255,325)
Premium on long term debt 94 4,641 Discount on long term debt (199)
Issuance of long-term debt 31,500 13,570 8,000 2,769 175 18,238 22,583 7,289 7,775 Capital leases 1,649 2,198 Claims settlement proceeds 750 3,848 Special items 1,250 Extraordinary loss (67,235)
Total other financing sources 45,577 (55,694) 26,520 32,278 51,795 45,500 27,917 35,991 19,428 18,744 Net change in fund balances $ 47,214 $ (57,925) $ 32,754 $ (26,762) $ 36,035 $ 11,443 $ (10,216) $ 11,280 $ 3,634 $ 34 Debt service as a percentage of non-capital expen ditures 9.79% 10.87% 10.68% 10.65% 11.71% 12.72% 14.29% 15.32% 14.27% 14.68%
Source: Finance Department, City of Anaheim 119 See accompanied independent auditors' report
CITY OF ANAHEIM General Governmental Tax Revenues By Source Last Ten Fiscal Years (Inthousands)
(Modified accrual basis of accounting)
Amounts In Dollars Property Taxes Property Taxes Increments Supple- Supple-Secured Unsecured mental Secured Unsecured mental Property Sales Transient Fiscal Property Property Property Anaheim Property Property Property Taxes In-lieu and Use Occupancy Other Year Taxes Taxes Taxes Residual Taxes Taxes Taxes of VLF I Taxes Taxes Taxes Total 2013 $ 33,114 $ 1,194 $ 806 $ 2,834 $ 26,363 $ 62,793 $ 102,936 $ 7,078 $ 237,118 2012 31,770 1,289 207 21,576 2 6,884 2 218 2 25,630 58,589 90,376 6,401 242,940 2011 31,848 1,300 373 36,824 8,859 1,357 25,532 55,034 82,605 6,486 250,218 2010 32,267 1,341 385 38,809 8,221 701 25,696 48,210 77,139 6,303 239,072 2009 32,496 1,351 712 37,710 7,986 1,419 26,247 56,493 80,055 6,451 250,920 2008 31,073 1,343 1,326 34,772 9,105 1,842 25,850 64,296 87,183 6,753 263,543 2007 29,919 1,384 1,551 29,090 8,591 3,029 25,083 65,695 83,914 7,531 255,787 2006 26,537 1,171 1,887 27,067 7,954 2,320 19,820 64,993 75,979 7,862 235,590 2005 24,820 1,173 1,824 25,380 7,802 1,802 15,819 59,000 67,141 7,542 212,303 2004 23,399 1,136 1,054 23,124 7,455 1,071 54,559 63,268 7,095 182,161 1 Collection of property taxes in-lieu of VLF starting in fiscal year 2005 is due to the shifting of revenue from motor vehicle license fees category to the property tax category.
This was part of the State of California 2004 Budget Act.
Decrease in property tax increments revenues in fiscal year 2012 was due to dissolution of the Redevelopment Agency on February 1, 2012. Property tax increments were received up to January 31, 2012.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the fiscal year 2011 presentation.
See accompanied independent auditors' report 120
CITY OF ANAHEIM Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (In thousands)
(Modified accrual basis of accounting)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 City of Anaheim Secured property $29,608,967 $28,808,849 $28,600,152 $28,775,989 $29,329,062 $28,473,221 $26,507,229 $24,081,039 $22,288,504 $20,826,232 Unsecured property 1,265,519 1,232,825 1,278,062 1,283,263 1,226,209 1,198,812 2,442,959 1,117,310 1,162,358 1,287,967 Total City of Anaheim 30,874,486 30,041,674 29,878,214 30,059,252 30,555,271 29,672,033 28,950,188 25,198,349 23,450,862 22,114,199 Dissolved Anaheim Redevelopment Agency Secured property 4,338,935 3,977,843 3,751,227 3,762,168 3,644,931 3,360,645 2,838,528 2,574,542 2,332,303 2,177,936 Unsecured property 683,237 656,505 743,403 762,903 789,618 818,255 813,249 734,299 748,144 731,733 Total Anaheim Redevelopment Agency 5,022,172 4,634,348 4,494,630 4,525,071 4,434,549 4,178,900 3,651,777 3,308,841 3,080,447 2,909,669 Total Taxable Assessed Value $35,896,658 $34,676,022 $34,372,844 $34,584,323 $34,989,820 $33,850,933 $32,601,965 $28,507,190 $26,531,309 $25,023,868 tolal Dlrect Tax Rate 0.11078% 0.11075% 0.11075% 0.11031% 0.11024% 0.11041% 0.11041% 0.11083% 0.11117% 0.11161%
Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%based upon the assessed value of the property being taxed, Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it issold to a new owner, At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: Auditor-Controller, California Municipal Statistics, Inc, County of Orange, HdL Coren & Con See accompanied independent auditors' report 121
CITY OF ANAHEIM Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Rate per $100 assessed value)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 City Direct Rate (1)
City Basic Rate (2) 0.10851 0.10851 0.10851 0.10816 0.10816 0.10816 0,10816 0,10816 0.10816 0.10816 Anaheim General Obligation Band Fund 0.00227 0.00224 0.00224 0.00215 0.00208 0.00225 0.00225 0.00267 0.00301 0.00345 0.11078 0.11075 0.11075 0.11031 0.11024 0.11041 0.11041 0.11083 0.11117 0.11161 Overlapping Rates:
Anaheim Elementary General Fund 0.29873 0.29873 0.29873 0.29778 0.29778 0.29778 0.29778 0.29778 0.29778 0.29778 Anaheim High General Fund 0.19043 0.19043 0.19043 0.18982 0.18982 0.18982 0.18982 0.18982 0.18982 0.18982 Educational Revenue Augmentation Fund 0.15592 0.15592 0.15592 0.15543 0.15543 0.15543 0.15543 0.15543 0.15543 0.15543 North Orange Co. Community College General Fund 0.07755 0.07755 0.07755 0.07730 0.07730 0.07730 0.07730 0.07730 0.07730 0.07730 Orange County Cemetery District 0.00057 0.00057 0.00057 0.00057 0.00057 0.00057 0.00057 0.00057 0.00057 0.00057 Orange County Department Of Education 0.01579 0.01579 0.01579 0.01574 0.01574 0.01574 0.01574 0.01574 0.01574 0.01574 Orange County Flood Control District General 0.02197 0.02197 0.02197 0.02190 0.02190 0.02190 0.02190 0.02190 0.02190 0.02190 Orange County General Fund 0.06849 0.06849 0.06849 0.06827 0.06827 0.06827 0.06827 0.06827 0.06827 0.06827 Orange County Harbors Beaches & Parks CSA 0.01698 0.01698 0.01698 0.01693 0.01693 0.01693 0.01693 0.01693 0.01693 0.01693 Orange County Sanitation District #2 Operating 0.03227 0.03227 0.03227 0.03469 0.03469 0.03469 0.03469 0.03469 0.03469 0.03469 Orange County Transportation Authority 0.00312 0.00312 0.00312 0.00311 0.00311 0.00311 0.00311 0.00311 0.00311 0.00311 Orange County Vector Control 0.00124 0.00124 0.00124 0.00124 0.00124 0.00124 0.00124 0.00124 0.00124 0.00124 Orange County Water District 0.00831 0.00831 0.00831 0.00893 0.00893 0.00893 0.00893 0.00893 0.00893 0.00893 Orange County Water District Water Reserve 0,00012 0.00012 0.00012 0.00013 0.00013 0.00013 0.00013 0.00013 0.00013 0.00013 Anaheim Elementary School Districts 0.05382 0.0537 1 0.03363 0.03193 0.02248 0.03544 0.02240 0.02811 0.0264 1 0.02495 Anaheim High School Districts 0.02858 0.02678 0.02745 0.02617 0.02363 0.02516 0.02355 0.02444 0.02770 0.02370 North Orange County Community College 0.01902 0.01742 0.01758 0.01662 0.01493 0.01502 0.01444 0.00520 0.00580 0.00610 Water District Rate 0.00350 0.00370 0.00370 0.00430 0.00430 0.00450 0.00470 0.01666 0.01441 0.01597 Total Direct and Overlapping Rate 1.10719 1.10385 1.08460 1.08117 1.06742 1.08237 1.06734 1.07708 1.07733 1.07417 (1) Excludes rates associated with mello-roos districts.
(2)In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1%fixed amount. This 1%isshared by all taxing agencies for which the subject property re-sides. In 1986, the State Constitution was amended to allow rates over the 1% base rate for voter approved general obligation debt. Valuations of real property are frozen at the value of the property in 1975, with an allowable adjustment up to 2%per year for inflation. However, property isassessed to its current value when a change of ownership occurs.
New construction, including tenant improvements, isassessed at its current value.
Source: Auditor Controller, Orange County See accompanied independent auditors' report12 122
CITY OF ANAHEIM Principal Property Tax Payers (Inthousands)
Current Year and Nine Years Ago 2013 2004 Percentage Percentage of Total Taxable of Total Taxable Assessed Assessed Assessed Assessed Rank Value Value Rank Value Value Tax Payer Walt Disney World Company 1 12.28% $ 4,170,132 14.20% 3,140,270 Irvine Company LLC 2 0.45% 152,654 Makar Anaheim LLC 3 0.39% 133,282 Reef America REIT II 4 0.33% 133,127 0.48% 106,456 Kilroy Realty LP 5 0.33% 111,419 La Palma/Miller Owner LLC 6 0.29% 98,611 PPC Anaheim Apartments 7 0.27% 92,491 Angeli LLC 8 0.26% 86,806 5 0.33% 72,327 Lennar Platinum Triangle 9 0.22% 75,000 BRE Properties Inc. 10 0.22% 73,042 Worldmark Club Boeing North America 2 0.58% 127,443 Allstate Life Insurance Company 3 0.49% 109,100 Joan MTR Schlund 6 0.32% 70,994 Atrium Plaza LLC 8 0.30% 65,308 Fairfield Resorts, Inc. 9 0.26% 57,872 OTR 7 0.30% 65,401 Stadium Gateway LLC 10 0.25% 55,968 Total 15.10% $5,126,564 16.83% $3,871,139 Source: Finance Department, City of Anaheim, California Municipal Statistics, Inc.
See accompanied independent auditors' report 123
CITY OF ANAHEIM Property Tax Levies and Collections Last Ten Fiscal Years (Inthousands)
Collected within the Fiscal Collected within the Fiscal Year of the Levy Total Collections to Date Year of the Levy Total Collections to Date Collections Collections Total in Total Tax In Fiscal Taxes Percentage Subsequent Percentage Increments Percentage Subsequent Percentage Year Levy Amount 1 ot Levy years Amount of Levy Levy 2 Amount 2 of Levy years Amount of Levy 2013 $ 34,813 $ 34,116 98.00% $ 236 $ 34,352 98.68%
2012 33,598 32,560 96.91% 512 33,072 98.43% $ 49,004 $ 28,327 57.81% $ 28,327 57.81%
2011 33,512 32,517 97.03% 558 33,075 98.70% 49,294 45,906 93.13% $ 282 46,188 93.70%
2010 33,627 32,490 96.62% 796 33,286 98.99% 49,119 46,584 94.84% 524 47,108 95.91%
2009 34,579 33,068 95.63% 1,231 34,299 99.19% 48,432 46,057 95.10% 622 46,679 96.38%
2008 34,283 32,798 95.67% 1,237 34,035 99.28% 46,785 44,793 95.74% 552 45,345 96.92%
2007 33,897 32,324 95.36% 789 33,113 97.69% 42,472 39,807 93.73% 549 40,356 95.02%
2006 30,123 29,187 96.89% 446 29,633 98.37% 38,278 36,692 95.86% 669 37,361 97.60%
2005 28,106 27,452 97.67% 341 27,793 98.89% 35,284 33,819 95.85% 321 34,140 96.76%
2004 25,780 25,118 97.43% 302 25,420 98.60% 32,794 31,026 94.61% 738 31,764 96.86%
Excludes property taxes in-lieu of vehicle license fees 2Decrease in property tax collection is due to the dissolution of the Redevelopment Agency on February 1,2012. Property tax increments were received up to January 31, 2012.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the fiscal year 2012 presentation.
Source: Auditor-Controller, County of Orange See accompanied independent auditors' report 124
CITY OF ANAHEIM Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Inthousands, except per capita amount)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Governmental Activities Bonds $ 616,086 $ 616,444 $ 821,587 $ 810,504 $ 805,068 $ 793,343 $ 740,107 $ 740,959 $ 739,775 $ 737,538 Certificates of participation 10,020 11,085 12,070 12,990 13,840 23,333 26,788 30,066 33,174 36,107 Notes and loans 54,877 25,546 34,566 29,094 24,621 27,538 57,614 43,342 28,669 22,747 Capital leases 1,369 1,694 2,341 2,605 1,235 2,353 2,484 2,220 1,523 2,001 Total governmental activities 682,352 654,769 870,564 855,193 844,764 846,567 826,993 816,587 803,141 798,393 Business-Type Activities Bonds 863,987 889,581 908,683 805.925 829,707 689,791 706,126 513,874 528,130 543,780 Certificates of participation 38,000 38,000 38,000 38,000 38,000 88,185 96,475 125,087 132,952 140,355 Notes and loans 18,722 24,488 30,519 11,379 12,299 13,189 14,081 14,976 15,842 16,678 Revolving line of credit 46,600 Capital leases 267 275 180 349 Total business-type activities 967,309 952,069 977,202 855,304 880,006 791,165 816,949 654,212 677,104 701,162 Total Government $ 1,649,661 $ 1,606,838 $ 1,847,766 $ 1,710,497 $ 1,724,770 $ 1,637,732 $ 1,643,942 $ 1,470,799 $ 1,480,245 $ 1,499,555 Percentage of Personal Income 20.74% 20.95% 24.57% 23.32% 23.96% 21.93% 22.17% 20.01% 21.48% 21.60%
Per Capita $ 4,766 $ 4,674 $ 5,418 $ 5,088 $ 5,193 $ 4,953 $ 4,985 $ 4,465 $ 4,466 $ 4,507 Note: Per capita amounts are estimates Certain reclassifications have been made to prior year data to conform to fiscal year 2013 presentation.
Sources: California State Department of Finance and Finance Department, City of Anaheim US Census Yearly American Community Survey See accompanied independent auditors' report 125
CITY OF ANAHEIM Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (In thousands, except per capita amount)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Bonds General Obligation $ 2,605 $ 3,185 $ 3,735 $ 4,255 $ 4,750 $ 5,220 $ 5,700 $ 6,170 $ 6,625 $ 7,060 Lease Revenue 613,481 616,444 609,683 605,252 600,064 588,692 582,272 575,125 569,016 562,118 Tax Allocation 208,169 200,997 200,254 199,431 152,135 159,664 164,134 168,360 616,086 619,629 821,587 810,504 805,068 793,343 740,107 740,959 739,775 737,538 Less amounts available in debt service fund 61,625 53,398 67,363 69,043 63,560 57,995 39,075 39,232 30,812 44,132 Total net obligation bonds outstanding
$55s4,461 $566,231 $701,032 $701,727 $ 708,963 $ 693,406 Percentage of Assessed Value of Property 1.54% 1.63% 2.19% 2.14% 2.12% 2.17% 2.15% 2.46% 2.67% 2.77%
Per capita $ 1,602 $ 1,647 $ 2,212 $ 2,205 $ 2,233 $ 2,224 $ 2,126 $ 2,130 $ 2,139 $ 2,084 Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements Certain reclassifications have been made to prior year data to conform to fiscal year 2013 presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 126
CITY OF ANAHEIM Direct and Overlapping Governmental Activities Debt As of June 30, 2013 (In thousands) 2012-13 Assessed Valuation $ 35,896,658 DIRECT TAX AND ASSESSMENT DEBT: Outstanding City of Anaheim $2,605 DIRECT GENERAL FUND DEBT:
City of Anaheim General Fund Obligations 679,747 TOTAL GROSS DIRECT DEBT 682,352 Less: City of Anaheim Public Financing Authority (100% self-supporting) 613,481 City of Anaheim various revenue funds (100% self-supporting) 56,246 TOTAL NET DIRECT DEBT 12,625 City's Share Total Debt of Debt 6/30/2013 % Applicable (1) 6/30/2013 OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District $ 165,085 1.707 $ 2,818 North Orange Joint Community College District 213,394 28.614 61,061 Rancho Santiago Community College District 293,247 12.851 37,685 Anaheim Union High School District 105,184 67.928 71,449 Fullerton Joint Union High School District 52,313 0.254 133 Garden Grove Unified School District 127,000 0.610 775 Placentia - Yorba Linda Unified School District 263,062 22.012 57,905 Anaheim School District 152,711 99.153 151,417 Magnolia School District 18,003 66.021 11,886 Other School Districts 103,016 Various 21,517 City of Anaheim Community Facilities Districts 39,645 100.000 39,645 Orange Unified School District Community Facilities Districts 8,855 9.786-100 3,095 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,541,515 459,386 OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations 190,546 8.390 15,987 Orange County Pension Obligations 306,287 8.390 25,698 Orange County Board of Education Certificates of Participation 15,770 8,390 1,323 Municipal Water District of Orange County Certificate of Participation 10,035 0.001 North Orange County Regional Occupation Program Certificates of Participation 10,920 29.412 3,212 Orange Unified School District Certificates of Participation 35,574 26.478 9,419 Orange Unified School District Benefit Obligations 88,265 26.478 23,371 Placentia-Yorba Linda Unified School District Certificates of Participation 107,936 22.012 23,759 Anaheim Union High School District Certificates of Participation 36,848 67.928 25,030 Fullerton Joint Union High School District Certificates of Participation 22,255 0.254 57 Fullerton School District Certificates of Participation 6,470 0.176 11 TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 830,906 127,867 OVERLAPPING TAX INCREMENT DEBT: 224,405 0.086-100% 207,794 TOTAL GROSS OVERLAPPING DEBT 795,047 TOTAL NET OVERLAPPING DEBT 795,047 GROSS COMBINED TOTAL DEBT 1,477,399 (2)
,$ 807,672 127 NET COMBINED TOTAL DEBT See accompanied independent auditors' report
CITY OF ANAHEIM Direct and Overlapping Governmental Activities Debt As of June 30, 2013 (Inthousands) (continued)
Percentage of overlapping agency's assessed valuation located within boundaries of the city.
- 2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.
Ratios to 2012-13 Assessed Valuation:
Direct Debt ($2,605) 0.01%
Total Direct and Overlapping Tax and Assessment Debt 1.29%
Ratios to Adiusted Assessed Valuation:
Gross Combined Direct Debt ($682,352) 1.90%
Net Combined Direct Debt ($12,625) 0.04%
Gross Combined Total Debt 4.12%
Net Combined Total Debt 2.25%
Ratios to Redevelooment Increment Valuation (155022.1721 Total Overlapping Tax Increment Debt 4.14%
Source: California Municipal Statistics, Inc.
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government's ability to issue and re-pay 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.
See accompanied independent auditors' report 128
CITY OF ANAHEIM Legal Debt Margin Last Ten Fiscal Years (In thousands)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Debt limit $ 4,441,345 $ 4,321,327 $ 4,290,023 $ 4,316,398 $ 4,399,359 $ 4,270,983 $ 3,976,084 $ 3,612,156 $ 3,343,276 $ 3,123,935 Total net debt applicable to limit (2,605) (3,185) (3,735) (4,255) (4,750) (5.220) (5,700) (6,170) (6,625) (7,060)
Legal debt margin $ 4,438,740 $ 4,318,142 $ 4,286,288 $ 4,312,143 $ 4,394,609 $ 4,265,763 $ 3,970,384 $ 3,605,986 $ 3,336.651 $ 3,116,875 Total net debt applicable to the limit 0.06% 0.07% 0.09% 0.10% 0.11% 0.12% 0.14% 0.17% 0.20% 0.23%
as a percentage of debt limit Leaal Debt Marain Assessed value $29,608,967 $28,808,849 $28,600,152 $28,775,989 $29,329,062 $28,473,221 $26,507,227 $24,081,039 $22,288,504 $20,826,232 Debt limit (15% of total assessed value) 4,441,345 4,321,327 4,290,023 4,316,398 4,399,359 4,270,983 3,976,084 3,612,156 3,343,276 3,123,935 Note:
Under State Finance Law, the City's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 129
CITY OF ANAHEIM Pledge-Revenue Coverage Last Ten Fiscal Years (in thousands)
Redevelopment - Tax Allocation Revenue Bonds 2 Tax Less Net Fiscal Increment Operating Available Debt Service Year Revenue Expenses 1 Revenue Principal Interest Total Coverage 2011 $ 45,940 $ 8,848 $ 37,092 $ 55 $ 10,862 $ 10,917 3.3976 2010 46,652 21,409 25,243 10,766 10,766 2.3447 2009 46,101 5,300 40,801 10,766 10,766 3.7898 2008 45,719 4,722 40,997 6,000 6,275 12,275 3.3399 2007 40,710 2,729 37,981 3,983 13,417 17,400 2.1828 2006 37,341 5,196 32,145 2,977 11,727 14,704 2.1861 2005 34,984 5,361 29,623 3,014 11,700 14,714 2.0133 2004 31,650 3,321 28,329 4,620 9,996 14,616 1.9382 Operating expenses consist of SERAF contributions and pass through agreements 2 The Redevelopment Agency dissolved on February 1, 2012 Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 130
CITY OF ANAHEIM Pledge-Revenue Coverage Last Ten Fiscal Years (Inthousands) (continued)
Electric Utility Revenue Bonds Less Net Fiscal Electric Operating Available Debt Service Year Revenue Expenses 3 Revenue Principal Interest Total Coverage 2013 $ 453,949 $ 344,766 $ 109,183 $ 18,995 $ 33,335 $ 52,330 2.0864 2012 407,787 314,231 93,556 18,175 34,104 52,279 1.7896 2011 391,218 309,274 81,944 17,825 30,825 48,650 1.6844 2010 390,364 309,112 81,252 15,995 31,788 47,783 1.7004 2009 378,916 300,269 78,647 15,370 28,798 44,168 1.7806 2008 373,842 299,534 74,308 14,690 29,450 44,140 1.6835 2007 330,421 265,340 65,081 13,765 24.424 38,189 1.7042 2006 336,091 268,274 67,817 13,145 25,132 38,277 1.7717 2005 297,443 218,562 78,881 15,875 24,780 40,655 1.9403 2004 295,988 232,050 63,938 14,840 20,102 34,942 1.8298 I Operating expenses excludes amortization and depreciation.
See accompanied independent auditors' report 131
CITY OF ANAHEIM Pledge-Revenue Coverage Last Ten Fiscal Years (In thousands) (continued)
Water Utility Revenue Bonds Less Net Fiscal Water Operating Available Debt Service 4
Year Revenue Expenses Revenue Principal Interest Total Coverage 2013 $ 61,849 $ 43,982 $ 17,867 $ 950 $ 4,255 $ 5,205 3.4327 2012 59,330 44,615 14.715 915 4,292 5,207 2.8260 2011 56,935 45,293 11,642 880 3,275 4,155 2.8019 2010 57,787 45,231 12,556 1,490 2,544 4,034 3.1125 2009 53,039 40,123 12,916 1,435 1,967 3,402 3.7966 2008 51,052 41,190 9,862 1,375 325 1,700 5.8012 2007 51,595 43,203 8,392 1,325 379 1,704 4.9249 2006 47,904 39,110 8,794 1,870 450 2,320 3.7905 2005 44,484 33,312 11,172 1,340 485 1,825 6.1216 2004 44,659 35,602 9,057 1,625 819 2,444 3.7058 4 Operating expenses excludes amortization and depreciation.
Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 132
CITY OF ANAHEIM Pledge-Revenue Coverage Last Ten Fiscal Years (Inthousands) (continued)
Sanitation Revenue Bonds Bonds Waste Less Net Revenue Fiscal Water Operating Available Debt Service Revenues Expenses 6 Revenue Principal Sanitation Interest Total Coverage Year 2013 $ 12,106 $ 5,477 $ 6,629 $ 880 $ 2,118 $ 2,998 2.2111 2012 11,933 4,832 7,101 835 2,161 2,996 2.3702 2011 11,813 4,030 7,783 805 2,193 2,998 2.5961 2010 11,773 5,452 6,321 775 2,224 2,999 2.1077 2009 10,913 5,176 5,737 2,224 2,224 2.5796 2008 10,299 5,167 5,132 1,532 1,532 3.3499 2007 10,113 6,734 3,379 Amounts based on the notes to the basic financial statement, segment reporting
'Operating expenses excludes amortization and depreciation.
Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 133
CITY OF ANAHEIM Demographic and Economic Statistics Last Ten Fiscal Years Personal Education Orange Income Per Capita Level In Years County Fiscal (thousands Personal Median of School Unemployment Year Population (l) of dollars) Income Age (I] Schooling Enrollment Rate 2013 346,161 $ 7,954,181 $ 22,978 (21 32.4 12.2 64,463 6.10%
2012 343,793 7,669,678 22,309 32.4 12.2 67,760 7.90%
2011 341,034 7,519,459 22,049 32.4 12.2 67,884 9.20%
2010 336,208 7,333,705 21,813 32.4 12.2 68,331 9.50%
2009 332,120 7,198,701 21,675 32.4 12.2 68,890 9.30%
2008 330,659 7,467,272 22,583 32.4 12.2 68,663 5.30%
2007 329,780 7,416,752 22,490 32.4 12.2 69,296 3.90%
2006 329,373 7,351,605 22,320 32.4 12.2 70,793 3.70%
2005 331,458 6,892,338 20,794 32.4 12.2 71,314 3.90%
2004 332,727 6,943,347 20,868 32.4 12.2 71,637 3.60%
(1)Population and Median Age were updated to reflect Census 2010 counts.
(2)Per capita Income for FY 2013 is estimated. Data not readily available.
Sources: California State Department of Finance Anaheim City Superintendent of Schools State of California, Employment Development Department State Department of Commerce and Labor State Department of Education US Census Yearly American Community Survey See accompanied independent auditors' report 134
CITY OF ANAHEIM Principal Employers Current Year and Nine Years Ago Fiscal Year Fiscal Year 2013 2004 Percentage Percentage of Total City of Total City Employer Rank Employees Employment Rank Employees Employment Walt Disney Resort 1 23,512 14.0% 1 21,750 24,0%
Kaiser Foundation Hospital 2 6,040 3.6% 4 1,500 1.7%
Hilton Anaheim 3 1,572 0,9% 7 900 1.0%
CashCall Inc. Mortgage Division 4 1,400 0.8%
AHMC Anaheim Regional Medical Center 5 1,300 0.8%
Republic Services 6 1,300 0.8%
Angels Baseball LP 7 1,051 0.6%
Anaheim Marriot Hotel 8 1,030 0.6%
L-3 Interstate Electronic Corp. 9 940 0.6%
Northgate Gonzalez Markets 10 850 0.5%
West Anaheim Medical Center 10 700 0.8%
Boeing North America 2 3,500 3.9%
Opal Concepts Inc 3 2,000 2.2%
Alstyle Apparel 5 1,500 1.7%
Anaheim Memorial Medical Center 6 1,185 1.3%
Long Beach Mortgage 8 800 0.9%
Specialty Restaurant Corp. 9 700 0.8%
Total 38,995 23.2% 34,535 38.3%
See accompanied independent auditors' report 135
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CITY OF ANAHEIM Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program 2013 2012 2011 2010 2009 2008 - 2007 2006 2005 2004 City Council. 7 7 7 7 7 7 7 7 7 7 City Administration 20 21 21 24 24 24 22 19 18 17 City Attorney 30 30 30 35 35 35 35 32 32 32 City Clerk 7 6 6 7 7 7 7 7 7 7 Human Resources 38 36 36 40 40 40 40 38 37 37 Finance 32 34 35 40 41 42 42 42 42 44 City Treasurer 12 12 12 12 12 12 12 12 12 12 Police 536 530 554 610 610 604 591 582 570 568 Fire 262 275 277 289 289 290 290 288 285 285 Community Development 78 102 105 106 109 108 114 120 119 112 Planning 69 73 75 93 94 97 96 95 96 96 Public Works 234 235 252 252 252 252 249 247 245 245 Community Services 87 115 123 180 183 184 183 183 179 188 Public Utilities 352 355 377 377 377 367 354 337 335 331 Convention, Sports and Entertainment 83 91 91 91 91 88 88 86 86 86 Total 1,847 1,922 2,001 2,163 2,171 2,157 2,130 2,095 2,070 2,067 Source: City of Anaheim See accompanied independent auditors' report 137
CITY OF ANAHEIM Operating Indicators by Function Lost Ten Fiscal Years Fiscal Year Function /Proaram 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Police Department Number of calls for service 186,461 189,751 195,587 185,934 191,037 196,241 203,832 173,669 173,669 174,906 Number of 911 calls received 182,856 179,313 165,698 140,529 129,998 125,174 134,938 103,586 92,710 89,723 Number of Part I Crimes per 100,000 population 3,326 3,057 2,886 2,857 2,764 2,899 3,042 3,042 3,250 3,598 Number of Arrest 11,617 11.494 13,345 17,650 15,951 16,212 14,135 Number of Field Reports processed by Records Burec u 39,066 33,050 35,807 35,256 37,999 40,232 43,000 54,401 62,842 64,382 Number of traffic collisions 4,414 4,044 4,046 4,027 4,251 4.626 4,461 4,837 5,055 4,808 Number of Hours of Volunteer service 23,470 25,309 20,335 18,038 16,201 16,820 15,654 Fire Department Fire responses 902 923 983 1,275 1,016 1,082 649 687 519 590 False alarm responses 1,424 1,390 1,487 1,467 1,503 1,398 719 678 581 579 Mutual aid responses 2,860 2,744 2,707 2,560 2,532 2,662 2,296 2,271 2,530 2,441 Medical responses 24,735 23,061 22,202 24,045 21,553 21,301 16,326 16,679 13,783 14,130 Hazardous condition responses 207 201 199 207 224 203 263 322 138 134 Pubilc Works Centerline miles of arterial highway pavement improved 5.9 8.7 5.8 9.0 8.1 9.1 8.7 3.5 2.9 5.6 Square feet of deteriorated pavement replaced 4,029.806 2,977,482 4,274,463 820,000 780,500 890,500 890,500 920,500 910,250 887,156 Square feet of deteriorated pavement slurry sealed 2,850,939 4,208,194 4,167,569 1,975,000 2,532,000 3,483,000 3,483,000 3,522,000 4,175,500 2,704,599 Number of traffic intersections maintained 318 318 319 318 318 316 316 308 15 298 Number of traffic control hubs maintained 18 18 18 18 17 16 16 15 15 Square feet of deteriorated sidewalk replaced 77,590 74,780 62,940 60,000 50,500 50,200 50,200 46,500 48,850 56,725 Linear feet of damaged curb/gutter replaced 25,187 27,661 24,755 11,500 12,500 11,500 11,500 11,500 1,350 2,230 Square feet of medians/parkways maintained 5,644,818 5,511.065 5,460,655 5,400,000 5,350,000 5,350,000 5,350.000 5.212.600 5.209.500 5.132.700 Square feet of landscape maintained in the Anaheim Resort 1,430,486 1,430,486 1,430,486 1,430,486 1,419,286 1,419,286 1,419,286 1,419,286 1,419,286 1,419,286 Square feet of hardscape maintained in the Anaheim Resort 858,828 858,828 1.001,743 858,828 858,828 858,828 858,828 858,828 858,828 858,828 Number of vehicles maintained 1,106 1,152 1,162 1,331 1,331 1,351 1,283 1,273 1,273 1,283 Number of vehicles per mechanic 58 50 47 50 55 59 48 50 50 54 Square feet of interior space maintained 2,362,992 2,176,265 2,176,265 2,176,265 2,176,265 2,176,265 1,941,287 1,882,400 1,882,400 1,903,000 Square feet of exterior space maintained3 t7,645,278 39,138,187 3~ 9,138,187 39,138,187 39,138,187 39,138,187 35,298,000 35,238,900 35,238,900 35,283,600 Number ot facility square feet (interiorl per worker 139,000 120,904 114,540 103,631 103,631 103,631 77,651 75,296 75,500 75,500 Number of construction projects 120 100 136 130 130 132 167 158 130 192 Number of permit inspections 380 404 355 800 800 802 1,623 1,567 1,659 1,717 Parks Number of park acres maintained per full-time equivalent employee 75 75 75 12.00 12.00 10.52 10.52 10.52 10.39 10.39 Number of sports fields prepared 66 66 66 66 66 66 66 66 66 69 Cost per acre of parks maintained. $ 8,192 $ 8,031 $ 8,333 $ 9,651 $ 9,950 $ 10,699 $ 10,288 $ 9,960 $ 8,791 $ 9,144 Cost per sports field maintained. $ 4,260 $ 4,133 $ 4,261 $ 5,134 $ 5,134 $ 4,937 $ 4,747 $ 4,596 $ 4,828 $ 4,377 Golf Courses Cost per acre of golf course maintained $ 9,595 $ 9,010 $ 9,569 $ 11,327 $ 10,674 $ 10,617 $ 10,305 $ 9,625 $ 9,242 $ 8,921 Number of rounds played 118,879 120,675 116,287 124,404 137,948 153,661 157,649 160,614 156,991 168,168 Number of acres maintained 200 200 200 200 200 200 200 200 200 200 138
CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years (continued)
Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Function/Program City Libraries Hours open 16,243 15,530 15,364 18,944 19,290 20,292 Total circulation of materials, including eBooks 1,520,841 1,635,627 1,700,104 1,655,922 1,721,779 1,658,731 1,630,580 1,540,147 1,422.072 1,689,744 Patron assistance (reference, information, computer) 291,960 347,085 397,287 530,364 537,807 461,819 350,325 365,142 375,944 450,052 Patron visits 1,317,689 1,321,309 1,403,995 1,572,138 1,752,838 1,615,640 1,545,205 1,375,679 1,147,079 1,267,487 Library cardholders 158,396 157,278 156,444 149,501 138,826 147,638 161,278 139,611 114,700 100,690 Programs offered 3,097 3,235 3,927 3,991 4,777 4,410 3,923 2,740 3,559 3,572 Program attendance 102,728 101,696 124,401 146,357 158,669 152,532 129,661 84,631 79,912 99,330 Hours of public internet usage 237,340 220,930 209,673 246,676 277,097 242,734 192,817 170,254 154,927 151,304 Community Services Programs Number of youth program participants 136,345 129,215 110,013 134,611 146,381 455,725 362,839 362,839 354,505 346,171 Number of youth program participants in recreation classes 10,906 9,213 10,231 10,125 16,332 16,006 13,675 15,200 14,886 14,886 Number of adult program sports teams 841 845 908 885 875 840 756 812 820 639 Number of park ranger contacts 233,308 275,014 232,132 187,000 208,176 161,038 140,000 139,773 88,935 132,633 Public Utilities Department Electric Utility:
Number of meters 115,418 115,113 114,662 113,434 112,548 111,784 111,319 110,729 110,635 110,592 Megawatt-hours - sales 3,074,636 2,966,119 2,976,014 3,344,188 3,208,123 2,979,396 3,233,508 3,223,728 3,090,382 3,282,236 Megawatt-hours - purchased power 3,029,766 2,707,466 2,737,174 3,085,358 2,836,962 2,978,800 2,780,318 2,606,275 2,459,836 2,603,955 Megawatt-hours - owned generation 380,449 430,323 431,027 410,784 435,835 301,021 696,563 929,787 936,471 974,395 Water Utility:
Number of meters 62,917 62,793 62,717 62,607 62,456 62,436 62,372 62,045 61,883 61,704 Millions of gallons sold 20,464 19,672 19,526 20,492 22,238 23,154 24,075 22,887 22,550 23,881 Millions of gallons purchased from Metropolitan Water District 6,878 7,023 7,398 8,054 6,614 4,978 8,049 10,188 9,144 8,169 Millions of gallons pumped from water system wells 14,659 14,100 13,399 14,669 17,034 18,961 16,844 13,580 14,244 16,784 Anaheim Convention Center Number of events serviced 263 222 200 232 310 339 347 337 310 262 Number of attendees 1,070,000 1,059,000 935,000 944,000 917,000 1,008,000 1,098,000 1,002,000 1,202,000 992,000 Percentage of occupancy 58.0% 62.0% 56.0% 68.0% 56.0% 61.0% 70.0% 58.0% 66.0% 71.0%
Note: Certain statistics prior to the implementation of GASB statement no. 44 were not available.
Source: Various City Departments See accompanied independent ouditors' report 139
CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Function/Program Police Department Police Facilities 10 10 10 10 10 9 8 6 4 4 Motorized Equipment 247 242 242 250 266 255 251 248 Police Helicopters 3 3 3 4 4 3 3 3 3 3 Shooting Range I I 1 1 1 1 1 1 1 Communication/Radio Tower I I I 1 1 1 1 1 1 1 Fixed Wing I I Fire Department Fire stations 11 11 11 11 11 11 11 10 10 10 Training center 1 1 1 1 1 1 1 1 1 1 Fire trucks, engines, and other vehicles 79 74 69 74 74 79 79 72 72 71 Public Works Streets (center lane miles) 578 578 578 588.2 633.2 633.2 633.2 633.2 588.2 588.2 Traffic signals 318 318 318 306 318 314 312 312 309 308 Sewers (miles) 575.52 573.63 570.44 569.6 568.3 565.7 561.5 560 560 560 Storm Drains (miles) 151.30 151.24 151.24 151.24 148 148 148 148 148 148 Parks Community parks 11 11 11 I1 11 11 11 11 11 11 Mini parks 7 7 7 7 7 6 6 6 6 6 Neighborhood parks 21 21 21 21 21 20 20 20 21 21 Special use parks 6 6 6 6 6 6 6 6 6 6 City Libraries Branch libraries 7 7 7 7 7 7 6 5 4 5 Book mobiles I 1 1 2 2 2 2 2 1 1 See accompanied independent auditors' report 140
CITY OF ANAHEIM Capital Assets Statistics by Function Last Nine Fiscal Years Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Function/Program Public Utilities Department Electric Utility:
Transmission, 69kV, circuit miles 87 86 90 80 80 80 77 69 70 70 Distribution, 12 kV and lower, circuit miles Overhead 426 428 440 446 446 453 458 468 800 791 Underground 662 656 658 617 625 615 582 564 620 612 Water Utility:
Active Wells 18 18 18 18 18 21 19 21 23 26 Reservoirs 14 14 14 13 13 13 13 13 13 13 Water Mains (miles) 753 753 752 753 750 750 747 746 747 749 Fire Hydrants 7,816 7,812 7,802 7,805 7,751 7,749 7,730 7,720 7,848 7,818 Anaheim Convention Center Square footage available 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 Number of exhibit halls 5 5 5 5 5 5 5 5 5 5 Source: Various City Departments See accompanied independent auditors' report 141
CITY OF ANAHE IM Legend CITY HALL 200 S. ANAHEIMBLVD.
A FIRE STATIONS POLICE STATIONS
- LIBRARIES
- CITY FACILITIES
- HEUPORT
- 41. CANYON RIM PARK 7305 E. Canyon Rim Rd.
PARKS
- 42. RONALD REAGAN PARK
- 1. HANSEN PARK 11. WILLOW PARK 945 S.Weir Canyon Rd.
- 21. COLONY SQUARE 31. OLIVE HILLS PARK 1300 S. Knott St. 1625 W. Crone Ave. 210 E. Lincoln Ave. 4200 Nohl Ranch Rd. 43. ROOSEVELT PARK
- 2. REID PARK 12. PALM LANE PARK 22. WALNUT GROVE PARK 8160 E.Bauer Rd.
1595 Palais Rd. 905 S. Anaheim Blvd. 32. RIVERDALE PARK 3100 W. Orange Ave. 4545 E. Riverdale Ave. 44. ROSS PARK 1280 W. Santa Ana St.
- 3. SCHWEITZER PARK 13. SAGE PARK 23. CITRUS PARK 33. PERALTA CANYON PARK 238 S. Bel Air St. 1313 Lido PI. 104 S. Atchison St 115 N. Pinney Dr. 45. COTTONWOOD PARK
- 4. MAXWELL PARK 14. STODDARD PARK 24. PONDEROSA PARK 853 W. Cottonwood Cir.
901 S. Ninth St. 34. PELANCONI PARK 2660 W. Orange Ave. 2100 S. Haster St. 46. DEER CANYON PARK 222 S. Avenida Margarita Mohler & Santa Ana Rd.
- 5. PETER MARSHALL PARK 15. MANZANITA PARK 25. LINCOLN PARK 35. IMPERIAL PARK 801 N. Magnolia Ave. 1260 Riviera St. 1440 E. Lincoln Ave. 47. FOUNDERS PARK 450 S. Imperial Hwy.
400 N. West St.
- 6. BROOKHURST COMMUNITY PARK 16. LA PALMA PARK & STADIUM 26. EDISON PARK 1151 La Palma Park Way 36. EUCALYPTUS PARK 2271 W. Cresent Ave. 1145 Baxter St. 48. COLONY PARK 100 N. Quintana Dr.
501 E. Water St.
- 7. JOHN MARSHALL PARK 17. PEARSON PARK 27. BOYSEN PARK 37. OAK PARK 400 N. Harbor Blvd. 951 State College Blvd. 49. ENERGY FIELD 2066 Falmouth Ave. 6400 E. Nohl Ranch Rd. 1625 S. Ninth St.
- 8. MODJESKA PARK 18. LITTLE PEOPLES PARK 28. JUAREZ PARK 38. YORBA REGIONAL PARK 50. MAGNOLIA PARK 1331 S. Nutwood St. 220 W. Elm St. 841 S. Sunkist St. 7600 E. La Palma Ave. 1515 Wright Cir.
- 9. CLARA BARTON PARK 19. JULIANNA PARK 29. PIONEER PARK 309 E. Juliana St. 39. OAK CANYON NATURE CENTER 51. FRIENDSHIP PLAZA PARK 1926 Clearbrook Ln. 2565 E. Underhill Ave. 6700 Walnut Canyon Rd. 200 S. Anaheim Blvd.
- 10. CHAPARRAL PARK 20. GEORGE WASHINGTON PARK 30. RIO VISTA PARK 52. ANAHEIM COVES 1770 E. Broadway 40. SYCAMORE PARK 250 E. Cypress St. 201 N. Park Vista St. 962 S. Rio Vista St.
8268 Monte Vista Rd.
142