ML19036A774
| ML19036A774 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 06/30/2018 |
| From: | City of Anaheim, CA |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| Download: ML19036A774 (173) | |
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CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2018 INTRODUCTORY SECTION Page Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 9 Organization Chart 11 Administrative Personnel 12 FINANCIAL SECTION lndependentAuditor's Report 13 Management's Discussion and Analysis 15 Basic Financial Statements Government-wide Statements Statement of Net Position 29 Statement of Activities 31 Fund Financial Statements Balance Sheet - Governmental Funds 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 34 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 35 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - General Fund 37 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - Housing Authority 38 Statement of Net Position - Proprietary Funds 39 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 41 Statement of Cash Flows - Proprietary Funds 42 Statement of Fiduciary Net Position (Deficit) - Fiduciary Funds 44 Statement of Changes in Fiduciary Net Position (Deficit) - Fiduciary Funds 45 Notes to Financial Statements 47 Required Supplementary Information Schedule of Changes in the Net Pension Liability and Related Ratios 93 Schedule of Pension Plan Contributions 95 Schedule of Changes in the Net Other Postemployment Benefits (OPES) Liability and Related Ratios 96 Schedule of Other Postemployment Benefits (OPEB) Plan Contributions 97 Combining Individual Fund Statements and Schedules Government Funds Combining Balance Sheet - Nonmajor Governmental Funds by Fund Type 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds by Fund Type 100 Combining Balance Sheet- Nonmajor Special Revenue.Funds 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balan.ces (Deficit) - Nonmajor_ Special Revenue Funds 102 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Actual -All Nonmajor Special Revenue Funds 103 Combining Balance Sheet - Nonmajor Debt Service Funds 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - NonmajorDebt Service Funds 108
CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2018 (continued) Page Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -All Debt Service Funds 109 Combining Balance Sheet - Nonmajor Capital Projects Funds 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Nonmajor Capital Projects Funds 111 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)- Budget and Budgetary Basis Actual -All Capital Projects Funds 112 Internal Service Funds Combining Statement of Net Position - Internal Service Funds 117 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 118 Combining Statement of Cash Flows - Internal Service Funds 119 Fiduciary Funds Statement of Changes in Fiduciary Assets and Liabilities - Agency Fund - Mello-Roos 121 STATISTICAL INFORMATION (Unaudited) Net Position by Component - Last Ten Fiscal Years 124 Changes in Net Position - Last Ten Fiscal Years 125 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years 127 Fund Balances of Governmental Funds - Last Ten Fiscal Years 128 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 129 General Government Tax Revenues By Source - Last Ten Fiscal Years 130 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 131 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 132 Principal Property Tax Payers - Current Year an.ct Nine Years Ago 133 Property Tax Levies and Collections - Last Ten Fiscal Years 134 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 135 Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 136 Direct and Overlapping Governmental Activities Debt -As of June 30, 2018 137 Legal Debt Margin - Last Ten Fiscal Years 139 Pledged-Revenue Coverage - Last Ten Fiscal Years 140 Demographic and Economic Statistics - Last Ten Fiscal Years 142 Principal Employers - Current Year and Nine Years Ago 143 Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 144 Operating Indicators by Function - Last Ten Fiscal Years 145 Capital Assets Statistics by Function - Last Ten Fiscal Years 147 OTHER INFORMATION 149 Summary of Pension Obligation Funding Progress Summary of Other Postemployment Benefits (OPEB) Funding Progress 150 151 City of Anaheim Map
Center, the Anaheim Regional Transportation lntermodal Center (ARTIC), and two City of .Anaheim, California major league professional sports teams-the Angels,Major League Baseball team, Finance .o*epartment which utilizes Angel Stadium of Anaheim, and the Anaheim Ducks National* Hockey League team, which utilizes the Honda Center. Anaheim is a significant contributor to the diverse Orange County economy, which is home to more than 8,500 manufacturing plants. Product manufacturers include notable manufacturing businesses focused on defense and aerospace, biomedical, electronics, machinery, and computer products. The City has over 24,00d a'ctive business licenses, of which over 17,500 are businesses operating within the City's boundaries. December 19, 2018 The economy, continues to grow moderately and while there is little reason to believe that a recession is on the immediate horizon, we are cautious of. the possibility in the coming years. Job growth nationally and locally has had a *significant impact on. the To the Honorable Mayor and City Council economy. and should continue to bolster the economic outlook over *the next few City of Anaheim years. Anaheim, California The unemployment rate in Anaheim for June 2018 was 3.5%, while the national In accordance with the Charter of the City of Anaheim* (City), please.*accept average was at 4.0% and the state average at 4.5%.
- submission of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2018. Responsibility for the accuracy of the data, The City will continue to build on the successes and achievements realized in *the completeness, and fairness. of the presentation, including all disclosures, rests with current year,. and remain committed to efforts to' grow service levels. Tlie City's "Big Three" revenue sources of transient occupancy tax, property tax, and sales and use the City. We believe the data included is accurate in all material aspects, and is tax, have all shown-steady growth this year. As the City moves througn fiscal. year presented in a manner designed to faidy set forth the financial position and 2018/19, we are optimistic about continued growth but will remain attentive to the
*operational achievements of the City, as measured by the financial activity of its prevailing economic climate and mindful of managing enhanced services Within the various funds. In addition, all disclosures necessary to enable the reader to gain limits of the City's General Fund.
maximum understanding of the City's financial activities have been included. MAJOR INITIATIVES The City Charter requires a'n annual audit of the City's financial statements by an independent Certified . Public Accountant. Accordingly, this year's audit was With direction from the Mayor and City Council, City Administration identifies the compieted by KPMG LLP. In addition to meeting the requirements set forth in the priorities that shapes the path for Anaheim's future. City initiatives are reevaluated City Charter, the audit was also. designed to meet the .requirements of the Single regularly, and new items are frequently added to ensure that City efforts are Audit Act Amendments of 1996' and the Uniform Guidance. The auditors' report on consistent with the priorities of our policy body and the commtmity. The City strives the basic*financial statements is included in the financial section. of this report. The each year to better fulfill its* mission of delivering outstanding municipal services that auditors' reports related specifically to the single audit are presented as a separate are responsive to our entjre community by continuing its tradition of* fostering document. innovation, ingenuity, an opportunity in its operations. This nelps achieve the primary goals of focusing on community needs, building neighborhood connections, and Management's discussion and analysis (MD&A) immediately follows the governing for results that strengthen comml:lnities. The City's dedication to independent auditors: report and provides a narrative introduction, overview, and improvement and modernization creates an . environment where reside.nts and . analysis ofthe Citi:> basic financial* statements.* MD&A complements this letter of businesses are*free*to choose how besffo.enjoy all that Anaheim has t_o o'ffer. transmittal'and sho.uld be read in Conjunction with it. ENSURING PUBLIC SAFETY ECONOMIC CONDITION A'ND OUTLOOK Public Safety remains a top priority for tile City of Anaheim with the commitment of Anaheim .is located in northwestern Orange County; approxir:nately 28 miles our Anaheim Police Department (APD) and Anaheim Fire & Rescue. Both:APD a'nd southeast of downtown Los-Angeles and.90 miles north, of San Diego. The City lies Anaheim Fire & Rescue continue to strive_for excellence by constantly evaluating on a coastal plain, which is bordered:by the Pacific Ocean to the -west and the':Santa their praetices and evolving in order to meet the-needs and ensure*the sa'fety of .our Ana Mountains to the east. The City is the *oldest and most populous city fr1 Orange residents; visitors, businesses and schools. County. Anaheim is .home to the Disneyland Resort, the Anaheim Convention
CITY OF ANAHEIM The Anaheim Police Department is committed to delivering prompt, high-quality neighborhoods. Toward this end, the Police Department and Anaheim Fire & emergency response, crime prevention and investigation, and community Rescue developed an innovative class at a junior high school with curriculum that engagement. The City of Anaheim currently ranks nationally as the 3rd safest City includes not only public safety material, but the importance of hard work, ethics and for violent crime and the 11th in lowest property crime for cities with more than decision-making skills. Building on the success of the Public Safety Pathway at 300,000 in population. The City remains focused on crime prevention and criminal Sycamore Junior High School, the City is working to connect this program to the investigation and as a result, the City of Anaheim has seen a 21 % decrease in high school level. It is a City priority to develop programs that encourage our youth violent crime over a 10 year period, far eclipsing the 13% decline in Orange County. to explore careers in public safety and APD is committed to providing a new and With the support of the City Council, APD has been working diligently to fill innovative program through our schools to give students a roadmap' to college and vacancies to support officers in patrol and has hired more than 50 officers over 18 public safety careers after high school. months. The department is also committed to ensuring the efficient use of these resources and in early 2018, the Annual Planning Review (APR) meeting was As the City continues to address those who are homeless, our APD's Homeless conducted to discuss department goals, priorities and strategies. The APR plan Outreach Team (HOT) remains a vital role in addressing the complexity of this issue. outlines the department's commitment to getting back to basics, including reducing HOT continues to work collaboratively with other agencies and community based response times, preparing officers for leadership roles and ongoing training. Hiring organizations in a multi-pronged approach to mitigate the impacts of homelessness officers further supports the organization's plan to absorb anticipated vacancies, and promote solutions to finding long-term, supportive housing for the homeless allowing more training and knowledge to be shared before retirements occur. A population in Anaheim. priority of APD is to train and develop officers so they are well poised to lead the organization in the coming years, guaranteeing our community continues to receive Along with addressing the needs of our homeless residents in the City, Drug Free the highest level of public safety and police service. Anaheim continues to provide a space for those who are struggling with substance abuse. APO launched this effort in 2017 as an avenue for those who seek the APD's core service commitment of providing timely response and excellent assistance and an alternative to arrest and prosecution for drug offenses. Drug Free customer service continues to be a priority. During fiscal year 2017 /18, APD Anaheim has proven successful, with 316 individuals who have sought care through streamlined and changed the manner in which calls were dispatched and assigned this innovative program. additional officers to patrol. Since committing to this purposeful, two-pronged effort, APD has seen a 15% reduction in Priority 1 response times, equating to an average Finally, as the lead agency of the innovative Orange County Human Trafficking Task reduction of 1 minute, 14 seconds. Priority 1 calls are emergency calls with a high Force (OCHTFF), APO played a pivotal role in addressing these horrific crimes in expectation of rapid police response to preserve and protect life, and with a 2017. 37 adult victims were rescued along with 19 juveniles, with victim services and reasonable likelihood of suspect apprehension. For the next fiscal year, APD plans resources brought to bear to provide the tools and support needed for these to review patrol districts and assignments more closely to ensure the daily survivors to return to healthy, safe and productive lives. With resources focused on deployment of officers aligns with the calls for service levels. This examination is the identification and apprehension of traffickers, dozens of dangerous criminals part of the department's ongoing efforts to enhance the quality _of service and the were removed from the streets, including 47 for human trafficking and pimping. All time it takes for an officer to respond to priority calls. cases were successfully filed by the District Attorney, a critical and equally committed partner in this effort. In direct response to community feedback, the Anaheim Police Department worked with the community to add cameras at high traffic parks to allow APD to observe In unison with the efforts made by APO, Anaheim Fire & Rescue continues to play footage, aid in investigative follow-up and to assist with real-time illegal activity when an integral role in ensuring the safety of our city and residents. a call is received. The cameras are currently installed at Maxwell Park, Twila Reid Park, and Brookhurst Park and as the program evolves, the City is exploring Anaheim Fire & Rescue works to prevent or reduce the effects of an emergency additional parks to expand and leverage this technology. through proactive steps in various programs at community events, station tours, and working with school partners. The Home Safety Visit Program delivers fire safety Working with our community continues to be a core value for the City and APO education directly to Anaheim residents, particularly those households most recognizes that regular and meaningful engagement with our residents builds vulnerable to fire and fire injuries by installing new smoke alarms in households free strong, lasting and mutually beneficial relationships. In fiscal year 2018/19, APO will of charge. During fiscal year 2017 /18, Fire & Rescue visited 173 homes and begin working with a new and enhanced Police Review Board which was expanded installed over 600 smoke alarms in rooms where there were not previously any by the City Manager. The new board will receive briefings on critical incidents, smoke alarms or the units previously installed were not working correctly. access to important information and engage with APD and the districts the members serve to provide transparency and foster relationship building. In addition, in fiscal Preventative measures that address the high risk for fire in certain areas remains a year 2018/19, APD plans to review the Chief's Neighborhood Advisory Committee priority for Anaheim Fire & Rescue. Through the clearing of brush and vegetation in (CNAC) to determine methods to enhance the department's relationship with key high risk areas, these efforts help prevent wildfires by reducing fire hazards in open neighborhood leaders who are instrumental in crime prevention strategies and spaces. In September and October of 2017, the City experienced the Canyon Fire quality of life improvement. Furthermore, working with our youth is key to ensure and Canyon Fire 2, which each brought over 1,500 fire personnel from across future leaders in the department and our community. Many in our City have California. Since then, Anaheim Fire & Rescue has been working to take steps to expressed interest that more of our public safety professionals come from their local 2
CITY OF ANAHEIM improve safety in our community, including making changes to the types of trees and INVESTING IN OUR NEIGHBORHOODS plants allowed in certain high-risk areas in an effort to reduce a wildfire threat and incorporate plants that are more fire resistant. Maintaining and improving public spaces that benefit residents' health and overall well-being remained a priority for the City. The City continues to address the unique Anaheim Fire & Rescue continues to integrate the Community Care Response Unit needs of its residents by proactively engaging with the community. One way the City (CCRU) into the normal emergency response in the City. The CCRU consists of an has done this is through the Planning for Parks initiative. The goal of the initiative ambulance staffed with a certified nurse practitioner and an Anaheim Fire Captain/ was to hear from residents about their needs and desires for park facilities in the Paramedic. This unit is able to respond to low-level 911 medical calls, where the City. In order to accomplish this, the City conducted outreach at various City events Nurse Practitioner can address the medical needs onsite. Onsite service allows for as well as on the City's webpage and through social media, in order to encourage patients to be cared for and treated in their own home. This innovative program residents to share their opinions on what they would like to see in their existing and allows for fewer trips to the hospital and helps to free up Anaheim firefighters to future parks. Nearly 7,000 residents participated in the survey to share what they respond to high-level emergencies in the City. This past year an agreement was would like to see in City parks. The City is now able to use the information gathered reached with APO to allow the CCRU to respond and treat those incarcerated in the from residents to present key findings and recommendations to the City Council and City jail. This has helped to reduce the number of inmates having to be transferred to to develop an implementation plan to enhance City parks. a local hospital for treatment, which often removes an officer from patrol or other duties. The CCRU program continues to receive national attention and has set a The City's long awaited renovation of the Ponderosa Park Family Resource Center new standard for best practices in Mobile Integrated Healthcare. was completed in late 2017. This renovation has brought more community space and opportunities to Anaheim residents. The 18,400 square foot facility includes a In 2016, the department began working on the relocation and replacement of Fire gym with a full basketball court, dance and exercise room, demonstration kitchen, Station 5 from Kraemer Boulevard to La Palma Avenue and Sunkist Street. The new classroom and meeting space, and rooms for teens and younger children to learn location will improve response times and will reduce the demand on Fire Station 1, and play. Programs and services offered are free and include English as a second located on Broadway in the downtown area. Fire Station 5 is anticipated to be open language courses, sewing classes, cake decorating classes, and more. By in the fall of 2018. supporting health, education and well-being, the Ponderosa Park Family Resource Center will enhance the overall health and happiness within our community. In 2014, Anaheim Fire & Rescue received official Agency Status accreditation from the Commission on Fire Accreditation International (CFAI). The accreditation In addition to this renovation, there have been many other efforts to improve various process allows for a comprehensive self-assessment and evaluation. This process City parks and recreational areas. In fiscal year 2017/18, Pioneer Park received the enables fire and emergency service organizations to examine their service levels installation of a lighted perimeter walking trail, restroom renovations, exercise and performance compared to industry best practices. If a department meets the equipment and new picnic amenities. Similarly, play areas in both the Ronald criterion in the model, CFAI then awards accreditation status in recognition of good Reagan Park and Sycamore Park were replaced with new playground equipment. performance. This coming fiscal year, Anaheim Fire & Rescue will once again Edison Park, Schweitzer Park, and Modjeska Park all received renovations to its complete the re-accreditation process and have an on-site review to renew its CFAI athletic field because of its heavy usage. Founders Park had a shade structure Accredited Agency status, proving its commitment to continuous improvement, installed between the Carriage and Pump Houses that increased the serving the community efficiently and providing a fair and safe work environment for programmability of this space. These renovations will allow the community to enjoy all fire personnel. many more years of these beloved parks and recreational areas. This coming fiscal year 2018/19, the City plans to work with Theodore Roosevelt Elementary and This past year Anaheim Fire & Rescue also completed a comprehensive neighboring residents to explore opportunities to align the needs of the school and comparative study of its Insurance Service Office (ISO) grading compared to 25 Boysen Park to better serve the residents, with the ultimate development of a other similar departments. This analysis provided important insight into how Boysen Park Master Plan that will reflect those findings and will guide the City's Anaheim Fire & Rescue compares to others, and identified numerous opportunities design and improvements at the park. Palm Lane Park will also undergo an on how it could improve its overall score and continue to improve services to the evaluation process in fiscal year 2018/19. During the installation of the Palm Lane community. This is important, as the City's Class 1 rating will be at risk if service Skate Park, residents approached the City requesting additional park improvements levels cannot keep up with the City's continual growth. A Class 1 rating provides to expand its usability and active spaces. Through a community input process, the lower insurance rates for most insurers, affording cost savings for our residents and City plans to evaluate the installation of an exercise trail and enhanced lighting in businesses. Palm Lane Park, with construction anticipated to begin in 2019. 3
CITY OF ANAHEIM With the help of KaBOOM!, who is no stranger to Anaheim, the 9th and 10th The design phase for the La Palma Park soccer fields is also expected to be KaBOOM! playgrounds were built at Willow Park in September 2017 and at Pearson completed during fiscal year 2018/19, with construction expected to begin in fiscal Park in February 2018. Since 1996, KaBOOM! has been dedicated to the goal that year 2020/21. This project will involve a redesign and redevelopment of the existing all kids get the childhood they deserve through great, safe places to play. These facilities on the west side of La Palma Park, which will replace underused areas with playgrounds were kid-inspired as neighborhood kids were invited to put crayons to soccer fields and related support structures. Soccer fields rank among the highest paper and draw their dream playground, with the community then selecting the final priorities of Anaheim residents and these improvements will respond directly to design. In 2016, five parks were selected as being in need of new playgrounds those needs. based on the age and condition of the equipment. With three of the parks completed, Anaheim can look forward to an additional two Disney-sponsored OUTREACH TO OUR COMMUNITY KaBOOM! playgrounds at Barton Park in 2018 and Julianna Park in 2019. Recognizing the need to support all Anaheim residents, including some of the most On February 14, 2018, the City's Bookmobile celebrated 60 years of service, which vulnerable residents faced with homelessness, the City began an innovative project was celebrated at the Anna Drive Bookmobile stop. By early 2019, a new 38-foot with Love Anaheim called Better Way Anaheim. Love Anaheim is a non-profit with a bookmobile will replace the aging current Bookmobile and provide many more years service project platform that seeks to coordinate leaders, volunteers and funding to of resources and services to neighborhoods across the City. accomplish a wide range of need-based projects. Better Way Anaheim offers basic work experience to participants through community service projects, while working Skate parks allow residents of all ages to take part in a much beloved sport while to connect participants to services that can help end homelessness. The program being in a safe space. In early 2018, the City received a $190,000 donation from the aims to provide the dignity of a day's work and experience to those looking to Logan Wells Memorial Foundation to create a skate park next to the East Anaheim transition out of homelessness and into the workforce. Gymnasium. The Logan Wells Memorial Skate Park will provide approximately 5,000 square feet of area for residents to enjoy and honor Logan Wells' love and The Better Way Anaheim effort is only the first phase of a jobs component that the passion for skateboarding. The skate park will undergo construction during the next City has developed to increase employment opportunities for the most vulnerable. fiscal year and consist of a street style skate park with built-in items such as grinding During the current fiscal year, the City was successful in bringing Chrysalis, a Los rails, jumps, ramps, grind boxes, ledges and/or snake runs. Additionally, the design Angeles based organization, to Anaheim. Chrysalis provides the tools and support for the Manzanita Skate Park has been completed and the project is expected to be necessary for individuals to step out of poverty and onto a pathway to self-carried out in with approximately 12,000 square feet of new skating space. The sufficiency. Through job-readiness classes, one-on-one appointments, and various Manzanita Skate Park will feature a hybrid design for beginner to intermediate other supportive services, Chrysalis provides the tools necessary for an individual to skaters with features such as a bowl, pump track, and street plaza components. succeed in the job market and further serves as an employer through its transitional jobs component. Chrysalis has a proven success rate with Los Angeles' homeless The City has also continued to engage with neighborhoods through programming population and the City is hopeful that the same success will transpire in Anaheim. such as afterschool activities, neighborhood gatherings, and community meetings. During fiscal year 2017/18, the City provided afterschool activities for over 54,400 IMPROVING OUR INFRASTRUCTURE youth, coordinated 53 neighborhood clean-up campaigns, provided assistance to over 26,700 community stakeholders by facilitating an ongoing citywide effort to Investment in our City's infrastructure continued to be a priority. The City works hard improve the livability of Anaheim neighborhoods, and reached over 1,400 to ensure that streets are well-kept and efficient, landscapes are maintained, and community members through 16 Neighborhood Services District Community that improvements continue to take place across the City. Fiscal year 2017/18 Meetings. achievements include 7,500 trees pruned, 11,400 trees pruned for power line clearance, 357 trees planted, sealing 350,000 linear feet of cracks, asphalt slurry of Next fiscal year, the City plans to prioritize many community projects such as at the 1,550,000 square feet, pavement rehabilitation of 582,000 square feet, and Central Library where an accessible and safe outdoor space for programming will be landscape maintenance of 6 million square feet. For the next fiscal year, the City will created. Amenities will include a performance stage, science demonstration space, continue to prioritize this work, with a special emphasis on improving street sandbox, trike track, planters and seating. This outdoor space will be used for pavement conditions; improving neighborhood infrastructure including pavement, programming, special events, and large scale events. The Euclid Library will also sidewalks and curb and gutter; constructing sidewalks to eliminate gap closures; create an outdoor space to develop children's literacy and social skills through tree maintenance and inspection; and sign replacement. storytelling, interactive play, and Science, Technology, Engineering, Arts, and Math (STEAM) programs. Finally, the East Lawn area of the Canyon Branch Library will become an outside Kid Zone with a useable programming space, relaxing outdoor reading space and outdoor chairs and tables. 4
CITY OF ANAHEIM Safe and efficient traffic signal operations are high priority objectives in the City as expected to last longer and require less maintenance than the older, high pressure they improve traffic flow and reduce traffic congestion and harmful emissions. Signal sodium (HPS) technology. modification projects to add protected left turn arrows and countdown pedestrian heads include: Euclid Street at Glenoaks Avenue Signal Modifications, Euclid Street Other electric capital improvements planned for fiscal year 2018/19 include at Cerritos Avenue Signal Modifications, and Katella Avenue at Douglass Signal undergrounding on Beach Boulevard, a project jointly planned with Southern Modifications. Traffic signal coordination projects on major arterials in the City California Edison, and replacing 30,000 feet of direct buried cable for enhanced include Orangewood Avenue Corridor, Anaheim Boulevard Corridor, La Palma system reliability. Avenue Corridor, State College Boulevard Corridor, Magnolia Avenue Corridor, and Brookhurst Street Corridor. In addition, many of these projects will receive Planned capital improvements for the water system include beginning the second emergency vehicle preemption devices to reduce emergency response times. phase of the Linda Vista Complex project. Phase 1 of the Linda Vista Complex project was completed in summer 2014 and included construction of a 4 million Anaheim Public Utilities (Utilities) provides various ways to help our residents and concrete water storage tank, a new pump station, piping and valves, and associated businesses save energy, water, and money. Through the Weatherization Program, power and controls for a fully functional facility. The second phase of this project will income-qualified renters and homeowners can receive services such as air duct include replacement of pumps and motors, electric and communication equipment, testing and sealing, attic insulation, weather stripping, efficient lighting, and low flow and instrumentation. This project will increase overall reliability, ensure adequate water devices at no cost. In fiscal year 2017/18, the Weatherization Program was water flows and pressures, and reduce future maintenance costs. expanded, increasing eligibility from 800 to 2,000 participants annually. For fiscal year 2018/19, Utilities will be enhancing its Small Business Energy and Water Direct Other planned improvements for the water system include the Lenain Treatment Install Program, offering small business customers the opportunity to receive up to Plant Rehabilitation and Expansion project. Originally constructed in 1968, the $3,000 in energy or refrigeration upgrades and $500 in water upgrades. Lenain Water Treatment Plant treats raw imported water and supplies approximately 25% of Anaheim's overall water use. The project will replace outdated infrastructure The City also remains focused on providing a high level of customer service through and expand plant capacity from 15 to 20. million gallons of water per day, allowing for initiatives that underscore flexibility, convenience, and real value. In fiscal year 2017/ maximum utilization of the *plant and reducing per unit treatment costs during peak 18, customer service hours were expanded to Saturdays from 8. am to noon for demand periods. Utilities also plans to replace approximately 6.5 miles of water added convenience, supplementing the after-hours utility connection and mains citywide to minimize main breaks and increase water system reliability. reconnection services that were made available to customers the prior year. In the next fiscal year, Utilities will look to upgrade its phone system used for call center ENCOURAGING BUSINESS GROWTH operations to gain features like enhanced virtual hold technology for improved call response, speech analytics for enhanced call routing, and pre/post optional surveys With all of the investment being made to maintain and improve the City, Anaheim is for stronger service performance monitoring and evaluation. not only a great city to live in, but a great city to play in for residents and visitors alike. One venue that has received an incredible improvement that will surely bring In December 2017, City Council approved the design-build agreement and nine more visitors to Anaheim is the Anaheim Convention Center. In September 2017, licensing agreements with five Anaheim public school districts to launch the pilot the Anaheim Convention Center's Betterment VII expansion was completed. This Solar for Schools program. This program will provide multiple benefits including expansion has been the largest and most significant expansion to the Convention generating clean renewable energy to meet state mandates, providing a lunch Center in nearly two decades. The expansion added 200,000 square feet of flexible shelter or shade parking for schools, and educating students in science, technology, space for trade shows, conventions, meetings, galas and more. With a new total of engineering, and mathematics (STEM) as it relates to solar power. The solar power 1.8 million square feet, the Anaheim Convention Center solidifies its spot as the facilities are expected to generate a total of 1.5 megawatts, which is enough to largest convention center on the West Coast. On an annual basis; there are provide about 375 homes with clean and renewable energy. Construction of the approximately 1 million attendees to the venue, and this expansion will increase the solar shade structures is expected to be completed during fiscal year 2018/19. ability of the Convention Center to accommodate an even wider range of events. Such events have already taken place with the return of the American Heart In fiscal year 2017 /18, street light installations were prioritized to meet neighborhood Association Convention which is the first time the American Heart Association and roadway safety requirements, and were also done in conjunction with other Convention has taken place in Anaheim since 2001. capital projects to reduce cost and minimize impacts on the community. Utilities staff installed new LED street lights on Rio Vista and Frontera Street, along La Palma The Anaheim Convention Center also welcomed the 2018 National Association of Avenue near Acacia Street, the front of St. Anthony Claret Church, and on Anna Music Merchants (NAMM) Show into the Convention Center expansion. The Drive, resulting in significant improvements to the safety and visibility of the NAMM Show saw a record 150,000 visitors to the City. When visitors come to the neighborhood. In fiscal year 2018/19, Utilities pians to install 2,500 LEDs, which are Convention Center they not only spend their time at the venue but they explore our 5
CITY OF ANAHEIM great city and ultimately generate revenue for Anaheim's residents .. The money the benefits likely to be derived; and (2) the valuation of costs and benefits requires visitors spend on hotels, dining and shopping helps the city provide public safety, estimates and judgments by management. parks, libraries, and revenue for other projects in the neighborhoods. This report consists of management's representations concerning the finances of Part of the citywide growth that was started in fiscal year 2017/18 and will continue the City. As a result, management assumes full responsibility for the completeness into fiscal year 2018/19 will come from hotel developments that are under and reliability of all of the information presented in this report. Management asserts construction. Some of these developments include: the Cambria Hotel & Suites a that, to the best of their knowledge and belief, this financial report is complete and 12-story, 352 room hotel and 15,000 square feet of casual dining restaurant space, reliable in all material respects. targeted to open in early 2019; the Hampton Inn & Suites, a five-story, 178 room hotel, targeted to open in late 2019; the Element Hotel a five-story, 174 room hotel BUDGETARY CONTROLS: targeted to open in late 2018; the JW Marriott a 12-story, 466 room hotel planned for the Anaheim GardenWalk, targeted to open in early 2020; and the Westin Hotel a The City maintains budgetary controls, the objective of which is to ensure 634 room hotel, with 42,000 square feet of meeting space and 30,000 square feet of compliance with legal provisions embodied in the annual appropriated budget restaurant, spa and retail space, targeted to open in early 2020. These new approved by the City Council. Activities of the General Fund, special revenue funds, additions will not only accommodate the many visitors that come into the City every debt service funds, capital projects funds, and all the proprietary funds are included day, but they will allow for continual economic growth that remains important to the in the annual appropriated budget. The level of budgetary control (that is, the level at City. which expenditures cannot legally exceed the appropriated amount) is established at the departmental level. The City also maintains an encumbrance accounting Housing projects are also adding to the citywide growth. During fiscal year 2017/18 system as one technique of accomplishing budgetary control. Encumbrances there were four housing projects approved ranging from a 41 unit condo generally are re-appropriated as part of the following year's budget. development with moderate income affordable units and market rate for-sale units, targeted to begin construction in August 2018; a 42 unit condo development at a RELEVANT FINANCIAL POLICIES: former industrial building site targeted to begin construction in August 2018; 39 single family homes, targeted to begin construction in fall 2018; and a planned Through sound fiscal management, the City of Anaheim positions itself to provide a development of 546 homes made up of 72 single family homes, 160 condos, ar:id positive atmosphere for economic development and the flexibility to strategically 314 apartments, targeted to begin construction in 2018. address budgetary challenges that result from fluctuations in the local, national, and global markets. As of June 30, 2018, the City's General Fund has a spendable, Not only is the City working hard to ensure that visitors and residents alike are able unassigned fund balance of $41.6 million, which represents 13% of the General to enjoy all that Anaheim has to offer, but there is also a focus on creating economic Fund total fiscal year 2017/18 expenditures. Traditionally, the policy has been to development opportunities by assisting with business development. Through the maintain General Fund reserves at a minimum of 7 to 10% of expenditures. Business Development and Attraction Program's first phase, which was completed in fiscal year 2017/18, businesses wishing to locate in Anaheim are assisted with Further, the City has a long-standing practice of recognizing and reserving for known locating commercial space. The program also develops business seminars in and anticipated liabilities. The City fully funds its compensated absences and at an partnership with government resource agencies to ensure that support is readily actuarially acceptable level for self-insurance. Additionally, the City has established available to new and existing businesses. In next fiscal year, the City will continue to an irrevocable tru*st for other postemployment benefits (OPEB) and continues to enhance this program with dedicated marketing, new business events and make the annual required actuarial determined contribution (ADC) to ensure this seminars, outreach efforts, and technologies. future obligation is fully funded. FINANCIAL INFORMATION LONG-TERM FINANCIAL PLANNING: Management of the City is responsible for establishing and maintaining internal On June 19, 2018, the City Council adopted the fiscal year 2018/19 budget. control designed to ensure that the assets of the government are protected from Additionally, as a companion to approving the budget plan, a five-year Capital loss, theft, or misuse, and to ensure that adequate accounting data are compiled to Improvement Plan was presented to the City Council. The five-year plan links allow for the preparation of financial statements in conformity with U.S. generally anticipated expenditures for infrastructure development with community needs and accepted accounting principles. Internal control is designed to provide reasonable, desires, and provides a citywide perspective of recommended projects and but not absolute, assurance that these objectives are met. The concept of proposed funding sources. The Capital Improvement Plan was finalized in June reasonable assurance recognizes that: (1) the cost of a control should not exceed 2018, and totaled $702.1 million for the five-year fiscal period ending June 30, 2023. The five-year Capital Improvement Plan has been submitted and annually updated, 6
CITY OF ANAHEIM in its present form, since 1982, for effective long-range planning purposes. It is City Management's belief that these two plans give City Council members an expanded opportunity to set policy and provide direction for implementation, resulting in improved management efficiency and improved financial results. AWARD GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA (GFOA) CERTIFICATE OF ACHIEVEMENT AWARD: The 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, 2017. This was the 42nd consecutive year that the City has achieved this prestigious award (fiscal years ended June 30, 1976 through 2017). In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both U.S. generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to conform to the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENT S The preparation of this report on a timely basis is a team effort involving many dedicated people across the entire organization. I would like to extend a special thanks to the talented finance professionals throughout the City, led by Peggy Au, Financial Accounting Manager. Appreciation is also expressed to Mayor Harry S. Sidhu, Council Member Lucille Kring, and Acting Assistant City Manager Gregory A. Garcia for their significant contributions as members of the Audit Committee. In closing, 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, Chris Zapata Deborah A. Moreno City Manager Finance Director/City Treasurer 7
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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, 2017. The Certificate of Achievement is a prestigious national award recognizing Government 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 governmental unit must publish an easily readable and Achievement efficiently organized Comprehensive Annual Financial Report, for Excellence whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and in Financial applicable legal requirements. Reporting A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Presented to Certificate of Achievement program requirements, and we are submitting it to GFOA. City of Anaheim California For its Comprehensive Annual Financia_l Report for the Fiscal Year Ended June 30, 2017 Executive Director/CEO 9
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CITY OF ANAHEIM Residents of Anaheim Elected Policy Maker Cou 'rl Pw*iEd 0/f,:ers lbayBoaro Budget, i1llestrnent and Tecm:ibgyCcrrrrisslon City City City l'.¥ks &Recreation Coomsslon Comnrity Center ""-<rority PBrrg Coomsslon Attorney Clerk Manager Comnrity Setvices Board F\JJic lJtities Bard
~ Heritage ComTission QTY ADMINISTRATION SisterCilyCoomsslon 1-lousrg& Comnrity 0..-..eiopmer(Ccrrmsslon City Manager's Office Wo1efme hlestrrert Bo.rd Acting Assistant Audit City Manager COMMI.JmY& COMMUNnY CONVENTlON, Fl'JANCE HJMAN P\/BlJC P!ANIIIIIG&
Fff& POUCE PUBUC ECONOMIC SPORISMID UTlJfES 8UI.DIIIG SERVICES RESCUE RESOURCES w:JRKS DEVEl.OPIV,ENT ENTERTAl'lMENr Budget and Recruitment & Special Enforcement Engineering Accounting Support Services Planning Services Parks Convention Center Emplyem net Water Services Workforce Purchasing Fire and Rescue Field Services Building Services Operations Operations Benefits Development Golf Operations Operations Corrvnunity & Energy Resources Fleet and Fadfity Visit Anaheim Cashjering Corrmurity Housing RecreatiOf\ Human Frre Prevention 2ind Employee Resort Policing Financial Management Preservation and Services Stadium Operations Information Relations Grants and Neighborhood Corrmurity Risk Investigations Services Licensing Construction Arena Operations Services Reduction Orgarizational Electric Services Services Coomurity Services Support Services Grove Operations Emergency Development Investment Financial and Library Services ARTIC Operations Management and Risk Management Administrative Preparedness Services 11
CITY OF ANAHEIM Administrative Personnel As of June 30, 2018 Acting City Manager Linda N. Andal Acting Assistant City Manager Gregory A. Garcia Acting Deputy City Manager/Planni ng & Building Director
- David Belmer
- Acting Chief of Police Julian Harvey City Attorney Robert Fabela Acting City Clerk Theresa Bass Community & Economic Development Executive Director John E. Woodhead IV Community Services Director Larry Pasco Convention, Sports & Entertainment Executive Director Thomas Morton Finance Director/City Treasurer Deborah A. Moreno Fire & Rescue Chief Randy R. Bruegman Acting Human Resources Director Jason Motsick Public Utilities General Manager Dukku Lee Public Works Director Rudy Emami 12
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KPMG LLP Suite 700 20 Pacifica Irvine, CA 92618-3391 Independent Auditors' Report Honorable Mayor and City Council An audit involves performing procedures to obtain audit evidence City of Anaheim, California: about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the Report on the Financial Statements assessment of the risks of material misstatement of the financial We have audited the accompanying financial statements of the statements, whether due to fraud or error. In making those risk governmental activities, the business-type activities, each major fund, assessments, the auditor considers internal control relevant to the and the aggregate remaining fund information of the City of Anaheim, entity's preparation and fair presentation of the financial statements in California (the City), as of and for the year ended June 30, 2018, and order to design audit procedures that are appropriate in the the related notes to the financial statements, which collectively circumstances, but not for the purpose of expressing an opinion on comprise the City's basic financial statements as listed in the table of the effectiveness of the entity's internal control. Accordingly, we contents. express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness Management's Responsibility for the Financial Statements of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally We believe that the audit evidence we have obtained is sufficient and accepted accounting principles; this includes the design, appropriate to provide a basis for our audit opinions. implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free Opinions from material misstatement, whether due to fraud or error. In our opinion, the financial statements referred to above present Auditors' Responsibility fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, Our responsibility is to express opinions on these financial statements and the aggregate remaining fund information of the City of Anaheim, based on our audit. We conducted our audit in accordance with California, as of June 30, 2018, and the respective changes in auditing standards generally accepted in the United States of America financial position and, where applicable, cash flows thereof and the and the standards applicable to the financial audits contained in respective budgetary comparison for the General Fund and Housing Government Auditing Standards, issued by the Comptroller General Authority Fund for the year then ended in accordance with U.S. of the United States. Those standards require that we plan and generally accepted accounting principles. perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Emphasis of Matter As discussed in note 2 to the financial statements, effective July 1, 2017, the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Financial f..PMG UP r:s ls Oo!<'!Wara !unnf.:t;l !1tththty pi'lrtn1~r~t\1p anu me: U.S. 1no1'1'1be1 11nr1 oJ 1h(? KPl'liG nntwork' ot 1n.ctt?pf.lm.1om mcnit.)(.!r t;rrn$ athl;;..100 w,,h KPMG ln1.cm.:ition,1l Coc)fhl!,1liva !"KPMG ln!Nl\a1ion,1l"\, a Swiss entity
Reporting for Postemployment Benefits Other Than Pensions. Our The combining and individual fund financial statements and opinion is not modified with respect to this matter. schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other Other Matters records used to prepare the basic financial statements. Such Required Supplementary Information information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional U.S. generally accepted accounting principles require that the procedures, including comparing and reconciling such information management's discussion and analysis on pages 15-28, the schedule directly to the underlying accounting and other records used to of changes in the net pension liability and related ratios on page 93- prepare the basic financial statements or to the basic financial 94, the schedule of pension plan contributions on page 95, the statements themselves, and other additional procedures in schedule of changes in the net OPEB liability and related ratios on accordance with auditing standards generally accepted in the United page 96 and the schedule of OPEB plan contributions on page 97 be States of America. In our opinion, the combining and individual fund presented to supplement the basic financial statements. Such financial statements and schedules are fairly stated, in all material information, although not a part of the basic financial statements, is respects, in relation to the basic financial statements as a whole. required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing The introductory, statistical information, and other information the basic financial statements in an appropriate operational, sections have not been subjected to the auditing procedures applied economic, or historical context. We have applied certain limited in the audit of the basic financial statements, and accordingly, we do procedures to the required supplementary information in accordance not express an opinion or provide any assurance on them. with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the Other Reporting Required by Government Auditing Standards methods of preparing the information and comparing the information In accordance with Government Auditing Standards, we have also for consistency with management's responses to our inquiries, the issued our report dated December 19, 2018 on our consideration of basic financial statements, and other knowledge we obtained during the City's internal control over financial reporting and on our tests of our audit of the basic financial statements. We do not express an its compliance with certain provisions of laws, regulations, contracts, opinion or provide any assurance on the information because the and grant agreements and other matters. The purpose of that report limited procedures do not provide us with sufficient evidence to is solely to describe the scope of our testing of internal control over express an opinion or provide any assurance. financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or Supplementary and Other Information on compliance. That report is an integral part of an audit performed in Our audit was conducted for the purpose of forming opinions on the
- accordance with Government Auditing Standards in considering the financial statements that collectively comprise the City's basic City's internal control over financial reporting and compliance.
financial statements. The accompanying introductory section, the combining individual fund statements and schedules, the statistical information, and other information sections as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Irvine, California December 19, 2018
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CITY OF ANAHEIM Manageniient's Discussion and Analysis soon as the underlying event giving rise to the change occurs, regardless. of the timing of related cash flows. Thus, assets, liabilities, revenues and (Unaudited) expenses are reported in these statements for some items that will only result in c<;1sh flows in future fiscal periods (e.g. uncollected revenues and As management of the City of Anaheim (City), we offer readers of the City's accrued but unpaid interest expense). basic financial statements this narrative overview and analysis of the financial activities of the City as of and for the fiscal year ended June 30, The Statement of Net Position presents information on all of the City's 2018. We encourage reacfors to consider the information presented here in assets, deferred outflows of resources, liabilities and deferred inflows of conjunction with additional information that we have furnished in our letter of resources, including capital assets and long-term liabilities, with the transmittal, which can be found in the introductory section of this report, and difference reported as net position. Over time, increases or decreases in net the City's basic financial statements in the financial section of this report. All position may serve as a useful indicator of whether the financial position of amounts, unless otherwise indicated, are expressed in thousands of dollars. the City as a whole is improving or deteriorating. OVERVIEW OF THE BASIC FINANCIAL STATEMENTS The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. Functional activities are This discussion and analysis are intended to serve as an introduction to the highlighted in this statement, whereby direct and indirect functional costs City's basic financial statements. The City's basic financial statements are are shown net of related program revenue. This statement shows the extent comprised of three components: 1) government-wide financial statements, to which the various functions depend on general taxes and non-program
- 2) fund financial statements, and 3) notes to financial statements. This revenues for support.
report also contains other supplementary-information in addition to the basic financial statements themselves. 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 COMPONENTS OF all or a significant portion of their costs through user fees anc;l charges THE-ANNUAL FINANCIAL REPORT (business-type activities). The governmental activities of the Cfty include general government, Police, Fire & Rescue, Community & Economic Development, Planning & Building,. Public Works, Community Services, Public Utilities (street lighting), Convention, Sports & Entertainment (Visit Anaheim and the Honda Center), and interest on related long-term debt The business-type activities of the City include the electric,. water and sanitation utilities, golf courses, convention, sports & entertainment venues (Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim) operations, and the Anaheim Regional
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I I 1['~ :w::iif 1 Transportation lntermodal Center (ARTIC) operation. The government-wide financial statements include not only the City itself, but also the Anaheim Housing Authority, Anaheim Public Financing Authority, and Anaheim Housing and Public Improvement Authority.
. -.............. . ...... Although these entities are legally separate, they function for all practical
'-*---~~~~' purposes as a part of the City, and therefore have been included as blended component units as an integral part of the primary government.
Summary..------- ---~ Detail. The government-wide financial statements can be found on pages 29-31 of this report. Government-wide financial staten:ients. The government-wide financial statements are comprised of the Statement of Net Position and the Fund financial statements. The fund financial statements focus on current Statement of Activities. These two statements are designed to provide available resources and are organized and operated on the basis of funds, readers with a broad overview of the City's finances utilizing the full .accrual each of which is defined ,as a fiscal and accounting entity with a self-method of accounting, .in a manner similar to a private-sector business. balancing set of accounts, established for the purpose of carrying on
- Under the full accruaLmethod of accounting, transactions are reported as specific activities or attaining certain objectives in accordance with special 15
CITY OF ANAHEIM regulations, restrictions or limitations. All of the funds of the City can be City uses its enterprise funds to account for i\s electric, water and sanitation divided into three categories: governmental funds, proprietary funds, and utilities, golf courses, convention, sports & entertainment venues and fiduciary funds. ARTIC operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. Governmental funds. Governmental funds are used to account for The City uses internal service funds to account for its general benefits and essentially the same functions reported as governmental activities in the insurance, motorized equipment, information services, and municipal government-wide financial statements. However, unlike the government- facilities maintenance functions. Because these services predominantly wide financial statements, the governmental funds financial statements benefit governmental rather than business-type functions, they have been utilize the modified accrual basis of accounting, which focuses on near-term included with governmental activities in the government-wide financial inflow and outflow of spendable resources, as well as on balances of statements. spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial Proprietary funds provide the same type of information as the government-requirements. wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for all of the enterprise Because the focus of the governmental funds is narrower than that of the funds, which are considered to be major funds of the City. Conversely, all of government-wide financial statements, it is useful to compare the the internal service funds are combined into a single, aggregated information presented for the governmental funds with similar information presentation in the proprietary funds financial statements. Individual fund presented for governmental activities in the government-wide financial data for the internal service funds is provided in the form of combining statements. By doing so, readers may better understand the long-term statements elsewhere in this report. impact of the government's near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement The proprietary funds financial statements can be found on pages 39-43 of of Revenues, Expenditures and Changes in Fund Balances provide a this report. reconciliation to facilitate this comparison between governmental funds and Fiduciary funds. Fiduciary funds are used to account for resources held for governmental activities. the benefit of parties outside the government. Fiduciary funds are not The City maintains 19 individual governmental funds. Information is reflected in the government-wide financial statements because the presented separately in the governmental funds Balance Sheet and in the resources of those funds are not available to support the City's own governmental funds Statement of Revenues, Expenditures and Changes in programs. Fund Balances for the General Fund and the Housing Authority Special The City maintains three different types of fiduciary funds. The Investment Revenue Fund, which are considered to be major funds. Data for the Trust Fund is used to account for the external portion of the City's remaining 17 governmental funds are combined into a single, aggregated investment pool; the Private-Purpose Trust Fund is used to account for the presentation. Individual fund data for each of these nonmajor governmental assets and liabilities held in trust for the Successor Agency to the former funds is provided in the form of supplementary combining statements on Redevelopment Agency (Successor Agency); the Agency Fund is used to pages 99-102, 107-108, and 110-111 of this report. account for monies collected and disbursed in a custodial capacity for the The City adopts an annually appropriated budget for all governmental and Mello-Roos districts in the City. proprietary funds. Budgetary comparison statements for the General Fund The fiduciary fund financial statements can be found on pages 44-45 of this and the major special revenue fund (Housing Authority) are required to be report. presented; these schedules are included in the basic financial statements on pages 37-38 of this report. Additionally, budgetary schedules for the Notes to the financial statements. The notes provide additional other governmental funds have been provided to demonstrate compliance information that is essential to a full understanding of the data provided in with the budget and can be found as part of other supplementary schedules the government-wide and fund financial statements .. The notes to the on pages 103-106, 109, and 112-115 of this report. financial statements can be found on pages 47-92 of this report. The governmental funds financial statements can be found on pages 33-36 Other supplementary information. In addition to the basic financial of this report. statements and accompanying notes, this report also presents combining individual fund statements referred to earlier in connection with nonmajor Proprietary funds. The City maintains two different types of proprietary governmental funds and internal service funds. Also included are the funds. Enterprise funds are used to report the same functions presented as budgetary comparison Schedules of Revenues, Expenditures and Changes business-type activities in the government-wide financial statements. The 16
CITY OF ANAHEIM in Fund Balances for all nonmajor special revenue funds, all debt service utilize the full accrual basis of accounting. The adjustments decreased the funds, and all capital projects funds. These statements and schedules can beginning fiscal year net position by $194,107. This amount represents the be found on pages 99-119 of this report. unfunded OPES liability of $198,820 partially offset by the OPES contributions made during fiscal year 2017 of $16,016, and the net OPEB Required Supplementary Information. The required supplementary asset of $11,303. The prior period adjustments, $146,632 in governmental information for pension and its related ratios, the postemployment benefits activities and $47,475 in business-type activities, are reflected in the (OPEB) and its related ratios can be found on page 93-97 of this report. unrestricted net position of the government-wide Statement of Net Position. FINANCIAL HIGHLIGHTS (Amounts in thousands) Additional information of the City's OPES plan can be found on note 11 of the notes to the financial statements on page 84-86 of this report. New Accounting Standard for Other Postemployment Benefits (OPEB) Results of Operations During fiscal year 2018, the City adopted the accounting pronouncement The City's total assets and deferred outflows .of resources exceeded its lia-issued by the Governmental Accounting Standards Board (GASB) related to bilities and deferred inflows of resources at the end of the current fiscal year other postemployment benefits (OPES). The Statement established by $1,835,691. accounting, financial reporting and disclosure requirements for OPEB, similar to pensions, rather than requirements for funding or budgetary
- The City's governmental activities represent $723,865 (39%) and purposes. the business-type activities represent $1,111,826 (61 %) of the City's Implementation of this accounting standard has significant impacts to the total net position.
financial reporting of the City's OPEB defined benefit plan. The accounting
- The City's net position increased by $70,878 (4%) as a result of the changes are as follows: current fiscal year's operations. The net position of the City's
- Net OPES liability - this liability is now required to be reported on a governmental activities increased $32,209 (5%) and the business-full accrual basis in the government-wide financial statements, as type activities net position increased $38,669 (4%).
well as in the proprietary fund financial statements.
- The City's restricted net position of $353,846 represents amounts Measurement date - the OPES liability as reported in the June 30, available for ongoing programs and obligations with external 2018 financial statements has a measurement date of June 30, restrictions.
2017, which reflects a one-year lag in reporting the liability. The City's total capital assets increased by $88,552 (3%). Capital
- Contributions made subsequent to the measurement date - assets in the City's governmental activities increased by $26,324 contributions made during fiscal year 2018 are reflected as deferred (2%) and business-type activities capital assets increased by outflows of resources for OPES and will be applied as a reduction in $62,228 (3%) during the current fiscal year.
OPES liability in the next fiscal year. The City's total long-term liabilities increased by $68,486 (2%)
- Governmental funds financial statements - the governmental funds during the current fiscal year; of this amount, long-term liabilities in continues to apply the modified accrual basis of accounting related to OPEB, i.e. reporting expenditures when OPES expenditures are the City's governmental activities increased by $70,593 (5%), and incurred, this amount represents governmental funds' proportionate business-type activities decreased by $2,107 (less than 1%).
share of the City's payments for retiree medical insurance , At the close of the current fiscal year, the City's governmental funds premiums. reported a combined fund balance of $473,515, an increase of
- Changes in actuary assumptions, differences between projected to $27,665 in comparison with the prior fiscal year. Approximately actual plan experiences, differences between projected and actual 6% of this amount ($30,021) is available for spending at the City's investment earnings, and other plan amendments - will be reflected discretion (unassigned fund balance).
as deferred inflows of resources or deferred outflows of resources depending on the nature of the changes. The amount will be At the end of the current fiscal year, unrestricted fund balance (total amortized and reflected as a component in the OPES expense of committed, assigned and unassigned fund balance) for the calculation in the period incurred and in future fiscal years. General Fund was $52,564 or 16% of total General Fund To implement these changes, the City is required to make a prior period expenditures. Unassigned fund balance was $41,556 or 13% of total adjustment to the July 30, 2017 net position in the government-wide General Fund expenditures. financial statements and the proprietary funds financial statements that 17
CITY OF ANAHEIM GOVERNMENT-WIDE FINANACIAL ANALYSIS NET POSITION June 30, 2018 AND 2017 Governmental Business-type Total Government 2018 Activities 2017
. 2018 Activities 2017
. 2018 2017*
$ 723,544 $ 704,179 $ 784,803 $ 825,077 $ 1,508,347 $ 1,529,256 Current and other assets 1,401,354 1,375,030 2,059,830 1,997,602 3,461,184 3,372,632 Capital assets, net 2,124,898 2,079,209 2,844,633 2,822,679 4,969,531 4,901,888 Total assets 180,187 139,827 68,671 59,204 248,858 199,031 Deferred outflows of resources 2,305,085 2,219,036 2,913,304 2,881,883 5,218,389 5,100,919 Total assets and deferred outflows of resources 80,077 84,790 114,028 117,579 194,105 202,369 Other liabilities 1,467,982 1,397,389 1,573,882 1,575,989 3,041,864 2,973,378 Long-term liabilities 1,548,059 1,482,179 1,687,910 1,693,568 3,235,969 3,175,747 Total liabilities 33,161 45,201 113,568 115,158 146,729 160,359 Deferred inflows of resources 1,581,220 1,527,380 1,801,478 1,808,726 3,382,698 3,336,106 Total liabilities and deferred inflows of resources Net position:
1,008,489 974,071 1,009,302 1,016,113 2,017,791 1,990,184 Net investment in capital assets 266,983 274,830 86,863 83,811 353,846 358,641 Restricted (551,607) (557,245) 15,661 (26,767) (535,946) (584,012) Unrestricted
$ 723,865 $ 691,656 $ 1,111,826 $ 1,073,157 $ 1,835,691 $ 1,764,813 Total net position *As adjusted due to implementation of Government Accounting Standards Board Statement No. 75 At the end of fiscal year 2018, the City's net position totaled $1,835,691 This amount decreased $4,795 from prior fiscal year. The decrease of which reflects a net increase of $70,878 or 4% from prior fiscal year. $5,027 in governmental activities is due to restricted resources spent for real property acquisitions for housing development purposes, $1,940 for The largest portion of the City's net position of $2,017,791 reflects its infrastructure construction in the Platinum Triangle Mello-Roos Projects, investment in capital assets (e.g. land, buildings, utility plant, machinery, and $880 for other grant related expenses; partially offset by increases of equipment, and infrastructure), net of any related outstanding debt that was $2,525 in amounts restricted for debt services in business-type activities.
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 deficit of $535,946 is the unrestricted net position, of spending. Although the City's investment in capital assets is reported net of which the unfunded OPEB, net pension liabilities and the related deferred related debt, -it should be noted that the resources needed to repay this debt inflows and outflows of resources account for $778,580. The unrestricted . must be provided from other sources, since the capital assets themselves net position deficit decreased by $48,066 from prior fiscal year reflecting cannot be used to liquidate these liabilities. Net investment in capital assets results of contributions from current year operations. The unfunded net increased by $27,607 (1 %) primarily due to capital asset additions from OPEB and pension liabilities are long-term obligations that will be funded unrestricted and grant funded resources, offset by reduction of the related annually in accordance with actuarially determined contribution amount and outstanding debt due to current year principal payments. rates. The positive component of the unrestricted net position, excluding the effects of OPEB and pension liabilities, is $242,634 and may be used to An additional portion of the City's net position of $353,846 represents meet the City's ongoing obligations to citizens and creditors. resources that are subject to external restrictions on how they may be used. 18
CITY OF ANAHEIM CHANGE IN NET POSITION YEARS ENDED June 30, 2018 AND 2017 Governmental Business-type Total Activities Activities Government 2018 2017 2018 2017 2018 2017 REVENUES Program revenues: Charges for services $ 87,561 $ 99,331 $ 638,567 $ 610,358 $ 726,128 $ 709,689 Operating grants and contributions 115,520 109,989 88 425 115,608 110,414 Capital grants and contributions 39,340 65,937 8,353 4,381 47,693 70,318 General revenues: Taxes: Property taxes 76,547 72,909 76,547 72,909 Sales and use taxes 80,732 77,732 80,732 77,732 Transient occupancy taxes 154,925 149,566 154,925 149,566 Other taxes 9,076 8,946 9,076 8,946 Gain on sale of capital assets 6,258 6,258 Unrestricted investment earnings 2,783 2,116 4,423 4,001 7,206 6,117 Other 105 106 105 106 Total revenues 572,847 586,632 651,431 619,165 1,224,278 1,205,797 EXPENSES Program activities: Governmental activities: General government 15,645 11,825 15,645 11,825 Police 173,921 151,559 173,921 151,559 Fire & Rescue 81,528 70,365 81,528 70,365 Community & Economic Development 96,067 100,720 96,067 100,720 Planning & Building 25,376 21,944 25,376 21,944 Public Works 55,981 61,806 55,981 61,806 Community Services 39,020 34,799 39,020 34,799 Public Utilities 2,346 2,530 2,346 2,530 Convention, Sports & Entertainment 19,930 19,238 19,930 19,238 Interest on long-term debt 34,938 34,876 34,938 34,876 Business-type activities: Electric Utility 394,574 412,424 394,574 412,424 Water Utility 75,755 72,715 75,755 72,715 Sanitation Utility 61,145 58,218 61,145 58,218 Golf Courses 4,898 4,465 4,898 4,465 Convention, Sports and Entertainment Venues 66,058 47,321 66,058 47,321 ARTIC Management 6,218 6,374 6,218 6,374 Total expenses 544,752 509,662 608,648 601,517 1,153,400 1,111,179 Excess before transfers 28,095 76,970 42,783 17,648 70,878 94,618 Transfers in (out) 4,114 7,701 (4,114) (7,701) Special item (8,218) (8,218) Increase in net position 32,209 76,453 38,669 9,947 70,878 86,400 Effect of implementation GASB Statement No. 75 (146,632) (47,475) (194,107) 691,656 761,835 1,073,157 1,110,685 1,764,813 1,872,520 Net position at beginning of year
$ 723,865 $ 691,656 $ 1,111,826 $ 1,073,157 $ 1,835,691 $ 1,764,813 Net position at end of year
- As adjusted due to implementation of Governmental Accounting Standards Board Statement No. 75 19
CITY OF ANAHEIM Betterment VII in September 2017 adding 200,000 square foot REVENUES BY SOURCE* GOVERNMENTAL ACTIVITIES exhibit space, have drawn new and returning visitors to the City. O ther
<1% Property taxes increased $3,638 (5%) primarily due to increase in Unreslncled inveslmont GOin on sole of captlol earnings asse ts Charges for services housing demand , add itions of new hotels , and developments within
<I % 1% 15%
the Platinum Triangle providing an increase to the property base upon which taxes are levied. Sales and use tax increased $3 ,000 Tron~nt occvponcy (4%) due to general improvement in the economy. loxes 27% Charges for services decreased by $11 ,770 (12%) primarily due to
$16,700 realized gains in the prior fiscal year from the sales of vacant land ($8,089) in Community Services department, and in the Housing Authority ($8,611) for housing development which did not occur again in the current year. The decrease is partially offset by Capitol grants ono increase in building permits and fees of $5,216 due to increased Properly loxe s c or,hlbuhons 7%
activities in construction and the related inspections. 13% Operating grants increased $5,531 (5% ) mainly due to an in crease Governmental activities. Governmental activities increased the City's net of $937 in federal funding for Section 8 rental assistance; an position by $32 ,209 . Key elements of this increase are as follows : increase of $2,509 in revenue allocations from the State of California of which $2 ,101 for road maintenance and rehabilitation per the The most significant revenues of the governmental activities are general Road Repa ir and Accounting Act of 2017 Senate Bill 1 Beall (SB1), taxes (56%), which include transient occupancy taxes (27%), property taxes (13%), sales and use taxes (14%), and other taxes (2 %). Program revenues and $408 per SB1 , the State General Fund Loan Repayment Fund are 42% of the total revenues of the governmental activities , which include to transportation fund ; and $1 ,046 for fair share allocation of net operating grants and contributions (20%) , capital grants and contributions waste importation revenues from Orange County Waste & (7%), and charges for services (1 5%); gain on sale of capital asset (1 %), Recycling . other revenues less than 1%, and unrestricted investment earnings less than 1% of the total revenues. Capital grants and contributions decreased by $26 ,597 (40%) primarily due to $39,893 of one-time revenues received in the prior Public safety (Police and Fire & Rescue) expenses are the most significant fiscal year that include $36,864 contribution from property owners (47%) of all governmental activities' expenses, followed by Community and related to the Community Facility District (CFO) 08-1 bond issuance Economic Development (18%), Public Works (10%), Community Services proceeds, and $3 ,029 transfer of the unspent bond proceeds from (7%), interest on long-term debt (6%) , and various other programs (12%). the Successor Agency to complete the bond funded eligible capital Included in these amounts is depreciation expense, which is 6% of the total projects. Partially offsetting the decrease is an increase of $6,818 in expenses for governmental activities . capital asset contributions from developers that include right-of-way Governmental activities revenues decreased $13,785 (2%) as compared to for streets and other public infrastructure, and an increase of $5,198 the prior fiscal year due to the following : in capital asset contributions for the Honda Center.
- Taxes increased $12 ,127 (4%) mainly due to the increase of $5,359 Unrestricted interest earnings increased by $667 due to higher (4%) in transient occupancy taxes (TOT) . TOT increases are largely investment income recognized for the current fiscal year, as interest attributable to the continued growth of the tourism indu stry. The rates begin to rise .
additions of four new hotels in 2016 , adding 816 rooms to the City's Gain on sale of capital asset of $6,258 realized from the sale of the hotel supply, the open ing of the Disney's new Guardians of the real property 1221 S Auto Center Drive, Anaheim . Galaxy - Mission Breakout ride at the beginn ing of last summer, and the grand opening of the Anahe im Convention Center Expansion , 20
CITY OF ANAHEIM Governmental activities net transfers in decreased $3 ,587 primarily due to The increase in Public Safety expenses of $33,525 (15%) is mainly the following: due to $26 ,092 increase in pension expense resulting from the pension plan 's change in actuarial assumption as previously Transfers out increased by $699 due to the increases of $321 in discussed , $2 ,047 increase in Fire & Rescue overtime cost primarily operational subsidy transfer, and $500 for debt services to the for providing strike team assistance to various fire incidents for ARTIC Management Fund ; partially offset by a decrease of $236 to which the City is reimbursed ; $3,513 increase in salary and benefit the Convention, Sports & Entertainment Venues for debt service. costs includes costs for the addition of 10 new sworn police officers which completes the fourth and final year of the commitment of The amount of transfers for debt services is based on actual debt hiring of 40 officers in 4 years initiative, $1 ,180 increase in payment service requirements . to the County of Orange for the 800 MHz Countywide Coordinated Communication System partnership cost , $456 increase in Transfers in decreased by $2,888 primarily due to a decrease of scheduled helicopter maintenance, and $500 increase in small
$2 ,114 from the Electric Utility transfer, calculated based on capital purchases of helmets and vests for new police officers operating revenues ; and a decrease of $800 from the Convention ,
- The decrease in Community & Economic Development expenses of Sports & Entertainment transfer that provided funding for one-time $4,653 (5%) is mainly due to a one-time loss of $6 ,166 on sale of capital funding for the Honda Center in the prior fiscal year. land in the prior fiscal year offset by an increase of $1,037 in Section 8 rental assistance due to higher costs per resident during the current fiscal year.
EXPENSES AND PROGRAM REVENUES
- GOVERNMENTAL ACTIVITIES The increase in Plann ing & Building expenses of $3,432 (16%) is primarily due to increase in pension expense of $2,147 resulting from the pension plan 's change of assumption in discount rate as 11ao I previously discussed ; increases in contract costs of $576 for animal
$1 60 i care, and $694 for graffiti removal contract services . $140 ! The decrease in Public Works expenses of $5,825 (9%) is primarily ~ $1 20 due to one-time expense write-off of a construction work in progress = i ($ 11 ,135) of the Anahe im Rapid Connection (ARC) Project in the j $1 00 prior fiscal year, offset by an increase of $2 ,734 in pension expense due to the pension plan 's change of assumption in discount rate as previously discussed ; $794 in landscape maintenance, $854 in facility seismic retrofit, and $956 funding provided to the Transportation Network to develop, install and implement a Real-Time Management and Passenger information system in the Anaheim Tourism Improvement District during the current fiscal year.
The increase in Community Services expenses of $4,221 (12%) is primarily due to an increase of $595 in building and facility rental resulting from new buildings that were placed in service during the current fiscal year, and a $2 ,571 increase in pension expense for reason previously discussed . Governmental activities expenses increased $35,090 (7%) as compared to the prior fiscal year. Of the total increases, labor and employee benefits increased $47,087 primarily due to increase of $38 ,209 in retirement pension expense attributable to the amortization related to change in actuarial assumption of the accounting discount rate used to measure the total pension liability by a reduction of 0.50% of the City's pension plans; and a total of $5,685 increase in labor expense due to new hires and employee pay rate increases in accordance with various labor contracts. Key elements of the change are as follows : 21
CITY OF ANAHEIM be found in note 1 of the notes to the financial statement on page 53 REVENUES BY SOURCE - BUSINESS-TYPE ACTIVITIES of this report. Capitol grants and contributions Olher The increase of $1 ,245 (2%) in Sanitation Utility charges for services 1% is attributable to a 2.5% rate increase in solid waste collection and disposal revenues and 5% rate increase in wastewater revenues for the entire fiscal year. The increase of $7,969 (22%) in the Convention , Sports and Entertainment Venues Fund is primarily due to $3,020 increase in facilities rental from higher corporate events, consumer shows and sporting events. Concession fees increased $4,945 resulting from higher food and beverage revenues and technology services. The grand opening of the Convention Center North expansion in September 2017 is partially attributable to the increases in rental demand along with all other revenues. The increase of $293 (28%) in ARTIC Management is due to facility Charges for services rental from new tenants moving in and an increase in advertising 98% revenues. Business-type activities - Business-type activities increased the City's net Net transfers out of $4 ,114 decreased by $3,587 as discussed in the position by $38,669. Key elements of this change are as follows : government-wide financial analysis of governmental activities. Charges for services of $638 ,567 increased by $28,209 (5 %) due to the following : EXPENSES AND PROGRAM REVENUES - BUSINESS-TYPE S500 The increase of $10 ,194 (2%) in Electric Utilities charges for 1,450 J services is primarily due to an increase of $4,507 in wholesale revenues resulting from an increase in wholesale energy sales '""' I attributable to a generally warmer year coupled with higher $350 t wholesale prices; transmission revenues increased $5,899 primarily ' due to an increase in revenue related to the California Independent g$300 ! System Operator (ISO) congestion revenue rights . Wild fires in i$250 I Northern California caused downed transmission lines which in turn I
$200 I caused power to flow through fewer transmission lines. A revenue !
related to fees charged for the usage of such transmission lines was "'° j allocated to the Electric Utility. 1,100 l The increase of $8,297 (12%) in Water Utilities charges for services .' is primarily due to $9,709 (14%) increase from sale of water resulting from an 8% increase in customer demand of water retail Elec lnc Ulillty Wate, lJlih!y SanHallo n UliNly
...... - ~
Golf Courms Convenl ion. Spofls & AlrnC Management Fn!e1tolnmenl sales, and rate increases of 8% in April 2017 and 6% in April 2018. The increase in customer demand is due to the removal of the Total expenses of $608 ,648 increased $7,131 (1 %). Key elements of the strenuous conservation efforts in response to the drought conditions changes are due to the following: throughout the region . Offsetting the increase is a $1,375 decrease in Rate Stabilization Account revenue (RSA) as the reven ues from The decrease in the Electric Utility expenses of $17,850 (4%) is the sale of water increase. Additional information about the RSA can mainly due to $19,042 (7%) decrease in power costs partially resulting from increased use of renewable resources and Cap-and-22
CITY OF ANAHEIM Trade funds (which reduces power costs), offset by increased ARTIC Management expenses decreased $156 (2%). The decrease wholesale energy purchases. Additional information about the is primarily due to a decrease in maintenance expenses. Electric Utility's Cap-and-Trade program can be found in note 13 of FINANCIAL ANALYSIS OF THE CITY'S FUNDS the notes to the financial statements on page 89 of this report. Depreciation expense decreased by $7,824 (14%) mainly due to the Governmental funds. The focus of the City's governmental funds is to decrease in depreciation expense related to the San Juan coal Unit provide information on near-term inflows, outflows, and balances of located in New Mexico which was fully depreciated and retired this spendable resources. Such information is useful in assessing the City's fiscal year. These decreases were partially offset by $10,301 (21%) financing requirements. In particular, unassigned fund balance may serve increase in maintenance, operations and administration cost mainly as a useful measure of a government's net resources available for spending attributable to increase of $7,661 in pension expense due to the at the end of the fiscal year. pension plan's change of assumption in discount rate as previously At the end of the current fiscal year, the City's governmental funds reported discussed, $687 increase in benefits provided to the public for total ending fund balances of $473,515, an increase of $27,665 in energy efficiency rebates and incentives; and other increases in comparison with the prior fiscal year. Of the total fund balance of $473,515, facility, software and hardware maintenance expenses. restricted fund balance totaled $385,408 (81 %) and indicates the use of resources are constrained by external parties, resource providers,
- The increase in Water Utility expenses of $3,040 (4%) is constitutions or enabling legislations. Unassigned fund balance totaled attributable mainly to $7,034 (20%) increases in purchase water and $30,021 (6%) and is available for spending at the City's discretion. The treatment and pumping costs due to continuing increase in demand remaining fund balance is $58,086 (12%), of which $9,644 is not in related to the ending of drought restriction; $3,696 (19%) decrease spendable form, $4,063 was committed to neighborhood projects and
$44,379 that was assigned for particular purposes.
in operation, maintenance, and administration costs was mainly due to a one-time increase in costs incurred for a cancelled capital Governmental revenues totaled $566,155 while expenditures were project in the prior fiscal year, and higher overhead applied to $544,968. construction work in progress due to significant increase in bond funded construction projects during the fiscal year, offset by an The General Fund is the general operating fund of the City. At June 30, 2018, the General Fund reported a total ending fund balance of $58,277 increase in pension expense of $2,174, as previously discussed. and consisted of the following:
- The increase in Sanitation Utility expense of $2,927 (5%) is primarily * $519 was nonspendable for inventory, prepaid and other assets due to both rate and volume increases of waste disposal services $5,124 was restricted for claims and judgments and gate fees; and increase in pension expense of $1,422, as previously discussed. $70 was restricted for grant purposes
$11,008 was assigned for encumbrances and other purposes
- The increase in Golf Courses expenses of $433 (10%) is due to a $41,556 was unassigned
$105 increase in water consumption resulting from warmer summer months, and a $194 increase in tree trimming and other repairs. General Fund total revenues increased $23,823 (7%) as compared to the prior fiscal year primarily attributable to the following:
- Convention, Sports & Entertainment Venues expenses increased Total taxes increased by $10,237 (3%) due to growth in the overall
$18,737 (40%). Part-time and contract labor increase of $1,144 economy. Taxes are the largest revenue sources of the General primarily related to the addition of new hires for the Convention Fund and they accounted for $321,463 or 82% of the total General Center North Expansion, $2,879 increase in pension expense for Fund revenues. During fiscal year 2018, transient occupancy taxes reason previously discussed, $3,375 in small capital purchases, (TOT) increased $5,359 (4%), property taxes increased by $3,674 depreciation expense increased by $3,415 due to the completion of (5%), sales and use taxes increased $1,180 (1 %); and other taxes the $203,190 Convention Center North Expansion; and interest increased by $24 (less than 1%).
expense increased $6,686 due to the completion of the Convention License, fees and permits increased by $6,289 (25%) mainly due to Center Expansion. increases in overall construction and development activities, 23
CITY OF ANAHEIM
- Use of money and property increased by $5,679 (148%) primarily Proprietary funds. The City's proprietary funds provide the same type of due to $5,389 of proceeds from sale of capital asset, and $385 information found in the government-wide financial statements, but in more increase in investment income. detail. The significant factors of the changes in fund net position of each proprietary fund are discussed in the government-wide financial analysis of General Fund expenditures increased by $13,723 (4%), of which $12,556 business-type activities.
(5%) was attributable to an increase in labor and benefit costs due to higher employee benefit costs, hiring of new police officers, and pay rate increases The Electric Utility net position increased $33,343 (10%) in the from various labor contracts, The key elements of *the changes as current fiscal year. discussed in the government-wide financial analysis of the governmental-activities. The Water Utility fund net position increased $4,186 (2%) in the current fiscal year. The Housing Authority Fund revenues decreased by $15,523 (15%) primarily due to one-time revenues in the prior fiscal year related to $10,803 The Sanitation fund net position increased $2,275 (2%) in the of proceeds from the sale of land for housing development, and $6,226 in current fiscal year. ground lease revenue from the Hermosa Village project; partially offset by a $937 increase in federal funding for Section 8 rental assistance. The Golf Courses fund net position decreased $640 (10%) in the current fiscal year. The Housing Authority expenditures increased by $5,700 (7%), essentially due to an increase of $1,037 in Section 8 rental assistance, as fewer The Convention, Sports and Entertainment Venues fund net position residents were assisted at a higher cost per resident; $3,016 in properties decreased $2,207 (less than 1%) in the current fiscal year acquired for multifamily affordable housing and related tenant relocation; and an increase of $1,391 in tenant improvements to the second floor of The ARTIC Management fund increased net position by $1,101 Anaheim West Tower and parking structure. (less than 1%). Total nonmajor governmental funds revenues decreased by $45,007 (34%). GENERAL FUND BUDGETARY HIGHLIGHTS The most significant factors of the changes are discussed in the government-wide financial analysis of the governmental-activities. During the year, the original budget was amended to increase appropriations by $7,146 (2%). The increase in appropriations was primarily Total nonmajor governmental funds other financing sources decreased by the result of the carryover of prior year appropriations and amendments $5,889 (9%) primarily due to a decrease in loan issuances of $3,875; and amounting to $2,611 and the reallocation of appropriations from other funds decrease in net transfer of $2,014 is mainly due to transfer from the General of $4,535. These amendments were funded from actual revenue increases Fund for the 800 MHz equipment acquisition in the prior fiscal year. and from savings in other programs of the General Fund during the year. Total nonmajor governmental funds expenditures increased by $7,158 (6%) General Fund revenues of $390,350 were greater than budgeted revenues Debt services increased $1,467 of which principal payment decreased of $373,006 by $17,344 (5%), primarily due to stronger development
$11,374 due to the repayment in full of the General Obligation Bonds and activities and proceeds from the sale of the Auto Center Drive real property.
the 1997 Series C Anaheim Resort Improvement Term Bonds in the prior fiscal year; interest payment increased $12,841 primarily due to scheduled General Fund expenditures were less than budgeted. Of the total accretion payments of the 1"997 Series C Anaheim Resort Improvement appropriations of $326,160, approximately 6%, or $1,944, went unspent. Capital Appreciation Bonds. other key elements of the changes are There were no significant variances. discussed in the government-wide financial analysis of th_e governmental-activities. 24
CITY OF ANAHEIM CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS (net of accumulated depreciation) June 30, 2018 AND 2017 Governmental Business-type Total Activities Activities Government 2018 2017 2018 2017 2018 2017 Land $ 658,827 $ 646,359. $ 89,505 $ 89,505 $ 748,332 $ 735,864 Construction in Progress 71,013 59,098 200,603 299,828 271,616 358,926 Building, structures, and improvements 193,896 192,256 718,550 525,141 912,446 717,397 Utility plant 1,037,864 1,070,268 1,037,864 1,070,268 Machinery and equipment 44,487 39,015 13,308 12,860 57,795 51,875 Infrastructure 433,131 438,302 433,131 438,302 Total $ 1,401,354 $ 1,375,030 $ 2,059,830 $ 1,997,602 $ 3,461,184 $ 3,372,632 Capital assets. The City's investment in capital assets for its governmental ($1,330), and the compressed natural gas (CNG) detection system and business-type activities at June 30, 2018 amounted to $3,461,184 (net design ($450). Various software and equipment upgrades totaled of accumulated depreciation). This investment in capital assets included $684 including the Enterprise Permit Tracking and Land land, construction in progress, buildings, structures and improvements, Management system ($590). utility plant, machinery and equipment, and infrastructure. The total increase over the prior fiscal year was 3% ($88,552), of which governmental
- Completion of $23,720 of construction work in progress including activities increased 2% ($26,324) and business-type activities increased neighborhood street improvements ($8,538), Pioneer Park improvement ($1,128), 800 MHz equipment acquisition ($6,025),
3% ($62,228). Gilbert Street improvement ($932), and Honda Center LED lighting Governmental activities capital asset additions totaled $67,419, capital project ($2,221). assets transfer to business-type activities was $114, capital asset
- Acquisitions of various vehicles and equipment totaling $7,353.
retirements, net of accumulated depreciation was $1,595 and offset by
- Public right-of-way and land and building additions of $23,049 which current year depreciation of $39,386. Major capital asset activities during include $8,381 for street construction purposes, $5,027 for housing the current fiscal year include the following: development purposes, and $5,467 for parks and community centers, and $4, 154 for other general improvements.
- Addition of $37,016 in construction work in progress which consist of various street improvements and street *widening projects totaled
- Sale of land and building with a net book value of $73.
$15,068 including the Brookurst Street widening ($4,170), Ball/ The increase in business-type activities is primarily due to increases in the Sunkist Street Improvement ($3,134), Orangewood Street Widening following:
($1,225), Gene Autry Way Street Improvement ($769), and Gilbert
- The Electric Utility increase of $29,204 (3%) is comprised of capital Street Improvement ($757). Park developments totaled $11,400 asset additions of $77,701, transfers in from Water Utility of $475, including the Ponderosa Park ($7,430), Anaheim Coves North Park and partially offset by $48,972 for the current year addition to Improvement ($2,158). Building and structure improvements totaled accumulated depreciation. Construction work in progress increased
$9,865 including Fire Station 5 construction ($4,627), Honda Center by $53,162 mainly due to $74,592 in additions of capital projects arena seating ($3,337), the LED lighting project at the Honda Center 25
CITY OF ANAHEIM offset by work completed of $21,430. Construction work in progress , The Sanitation Utility increase of $6,440 (6%) is comprised of capital of the Electric Utility includes replacement of aging overhead asset additions of $9,228, transfers in from the governmental electrical lines with state-of-the-art underground projects of activities of $114, and partially offset by the current year additions to continued improvements related to Underground District #64 at accumulated depreciation of $2,900 and capital asset retirements Orangewood and Harbor Boulevard; Underground District #63 at net of accumulated depreciation of $2. Construction work in Lincoln and Rio Vista; substantial progress made in the construction progress decreased $2,944 mainly due to additions of $8,698 for and purchase of materials related to the Harbor Substation, which is bond funded sanitary system improvement projects including the located at the Northeast corner of Katella Avenue and Zyen Street, sewer system improvements on La Palma, Cerritos, and Cresent, ongoing work related to replacement of line extension; installation of offsetting by the completion of $5,754 of sanitary improvements on fiber optic equipment; upgrading communication equipment, and Cerritos and Sycamore.
- improvements to other general facilities; installation of 43,796 feet of direct buried cable, replacement of switches, breakers, poles, cable
- The Golf Courses decrease of $503 (5%) includes capital asset and conduit throughout the city, replacement of 1,705 aging street additions of $6 offset by the capital asset retirement net of lights with more efficient LED lights, acquisition of 400 new accumulated depreciation of $12 and current year additions to transformers to replace aging ones; and completion of Phase 2 of accumulated depreciation of $497.
the Customer Information System. These improvements to the Electric Utility facilities will provide more efficient and functional The Convention, Sports and Entertainment Venues increase of services to Anaheim's citizens. The Electric Utility also retired the $7,835 (2%) is comprised of capital asset additions of $24,629, and fully depreciated San Juan Coal Unit located in New Mexico. partially offset by the current year additions to accumulated depreciation of $16,469 and capital asset retirements net of accumulated depreciation of $325. The Convention Center
- The Water Utility increase of $21,559 (7%) is comprised of capital Expansion Betterment VII bond funded project completed with a asset additions of $33,274 and partially offset by transfers out to the current year cost increase of $17,578. The entire project totaled Electric Utility of $475, capital asset retirements net of accumulated $203,823 was placed into service in September 2017. Other capital depreciation of $83, and current year accumulated depreciation asset additions include the Stadium ballfield lighting upgrade addition of $11,157. Construction work in progress increased by ($1,145).
$30,005 primarily due to $32,655 in additions of capital projects offset by work completed of $2,650. These projects include La The ARTIC Management decrease of $2,307 (1 %) is mainly due to Palma reservoir and Pump Station Replacement; Katella Avenue the current year addition to accumulated depreciation.
Water Main Replacement, Construction of Well 59 Equipping, Additional information on the City's Capital Assets can be found in notes 1 Alderdale/Maychelle Water Main Replacement. and 6 of the notes to the financial statements, on page 51 and pages 64-65 of this report. 26
CITY OF ANAHEIM LONG-TERM LIABILITIES JUNE 30, 2018 AND 2017 Governmental Business-type Total Activities Activities Government 2018 2017 2018 2017
- 2018 2017
- Revenue bonds $ 621,675 $ 627,589 $ 1,214,339 $ 1,235,400 $ 1,836,014 $ 1,862,989 Interest payable 2,998 2,635 2,998 2,635 Capital lease obligations 1,550 1,738 1,550 1,738 Notes and loans payable 28,008 29,577 16,972 20,523 44,980 50,100 Self-insurance 54,312 51,865 54,312 51,865 Compensated absences 21,090 20,941 21,090 20,941 Decommissioning provision 116,523 116,477 116,523 116,477 Net OPES liability 138,177 147,185 48,475 51,635 186,652 198,820 Net pension .liability 603,170 518,494 174,575 149,319 777,745 667,813 Total $ 1,467,982 $ 1,397,389 $ 1,573,882 $ 1,575,989 $ 3,041,864 $ 2,973,378
- As adjusted due to implementation of Governmental Accounting Standards Board Statement No. 75 Long-term liabilities. The City's outstanding long-term liabilities, including The City's business-type activities outstanding long-term liabilities revenue bonds, capital leases, notes and loans payable, self-insurance, decreased $2,107 (less than 1%). The decreases are primarily due to compensated absences, provision for decommissioning costs, net OPEB principal and decommissioning liability payments of $41,140; decrease in liability, and net pension liability totaled $3,041,864 at June 30, 2018. Of this net OPEB liability of $3,160, reductions of $28,845 in bond premiums due to total, $1,467,982 (48%) was in governmental activities and $1,573,882 amortization and bond refunding; offset by increases in principal and (52%) in business-type activities. The significant increase in city-wide long- premium totaled $38,398 from the issuances of the 2017 Series A and B term liabilities is primarily due to increase in net pension liability resulting Electric Revenues Bonds in the principal amount of $237,745 to refund from an actuarial change in assumption in accounting discount rate that was portion of outstanding balances of the 2011-A, 2012-A and the 2016 A-B used to measure the total pension liability. This change in assumption Electric Revenue Bonds, and the 2018 Sewer Revenue bonds in the equates to a pension liability increase of $144,022 for the City's three principal amount of $45,705 to refund the outstanding balance of $39,395 retirement pension plans for the measurement date ended June 30, 2017 2007 Sewer Revenue Bonds, decommissioning liability increased $7,021 and reported in the City's financial for the period ended June 30, 2018. and net pension liability increased $25,256.
The City's governmental activities outstanding long-term liabilities increased Additional information on the City's long-term liabilities can be found in $70,593 (5%) during the current fiscal year. The increases are primarily due notes 7, 8, 10 and 11 of the notes to the financial statements, on pages 67-to the increase in self-insurance of $2,447, compensated absences of $149, 86 of this report. net pension liability of $84,676, accrued accretion payable of $19,883 on ECONOMIC FACTORS the 1997 Anaheim Resort Improvement Bonds; and $3,434 issuances of a loan payable for technology equipment and the acquisition of the There remains a focus on public pensions and their sustainability; many community learning center. These increases are offset by decreases in net assumptions are used to estimate the ultimate liability of pensions and the OPEB liability of $9,008 and current year principal payments of $30,988. contributions that will be required to meet those obligations. One of the most significant factors used in determining the liability and the funding requirements is the rate of return that investments will yield prior to making 27
CITY OF ANAHEIM payments, known as the discount rate. The City's pension plans currently Abatement can be found in note 5 of the notes to the financial statements utilize a discount rate of 7.50%, which is used in determining the unfunded on page 63 of this report. pension liability and funding requirements. In December 2016, the California Senate Bill 1X 2 signed into law in April 2011 mandated that all CalPERS Board of Administration voted to lower this rate in its actuarial California utilities are required to reach 25% renewable power in their power assumptions from 7.50% to 7.00% over a three-year phase in beginning portfolios by 2016, 33% by 2020 and 50% by 2030. The higher renewable with the June 30, 2016 actuarial valuation. The reduction of discount rate power costs will increase future power supply costs. The Electric Utility has will be a significant increase in the unfunded liability and the contributions a number of strategies to mitigate the potential cost impacts.
- required to meet those obligations. Beginning in fiscal years 2018-2019 to 2020-2021, the discount rates will be 7.375%, 7.25% and 7.00% REQUESTS FOR INFORMATION respectively. Additional information about the City's retirement plans can be found in note 10 of the notes to the financial statements on pages 79-83 of This financial report is designed to provide a general overview of the City's this report. finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report or The State of California enacted pension legislation that went into effect in requests for additional information should be addressed to the Office of the January 2013 and applies mainly to new public employees. Some of the Finance Director, City of Anaheim, 200 South Anaheim Boulevard, Suite major changes include mandatory cost sharing by employees, reducing the 643, Anaheim, California, 92805. The City's Comprehensive Annual overall benefit level (e.g. percentage of pay), increasing the retirement age, Financial Report can also be found on the City's website at and placing a cap on the salary used to determine retirement benefits. The www.anaheim.net. impacts to the City for these changes for future employees have yet to be determined. For the 2019 fiscal year, the c*ity appropriated $345,915 in estimated available resources of $388,053 for General Fund spending. This leaves
$42,138 in estimated available reserves, which is 12% 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 to reflect recurring costs. Tourism plays a significant role. in the economies of California, Orange County and the City of Anaheim. While Anaheim has been able to compete for and capture a significant portion of tourism revenue, Anaheim has long recognized its inability to robustly tap into the upscale convention and tourism business. In May 2013 and June 2015, the City entered into five economic assistance agreements to provide economic assistance in the development of four-diamond quality hotels thus creating the desired number of luxury rooms within the City. As such the program was rescinded for terminated for future developments in December 2016. Provision of economic assistance is contingent upon completion of construction of the hotels, the commencement of and continued operations as a four-diamond quality, and the generation of and payment to the City of TOT. The contemplated hotels have yet to be built, and therefore cannot operate, generate nor pay TOT, and as such no economic assistance is required by the City at this time. Once the hotels are constructed and operated at the required quality level, the City will use an amount equal to 70% of the TOT generated and paid to the City to fund the corresponding economic assistance referenced above. Additional information about the City's Tax 28
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CITY OF ANAHEIM Statement of Net Position June 30, 2018 (In thousands) Governmental Business-type Activities Activities Total ASSETS
$ 71,128 $ 49,111 $ 120,239 Cash and cash equivalents 248,221 172,278 420,499 Investments Accounts receivable, net 23,869 67,371 91,240 1,044 1,229 2,273 Accrued interest receivable Internal balances, net 14,955 (14,955)
Due from other governments 38,584 38,584 Inventories 1,232 17,570 18,802 Land held for resale, net 29,014 29,014 Prepaid and other assets 12,717 99,555 112,272 46,219 200,598 246,817 Restricted cash and cash equivalents 153,838 192,046 345,884 Restricted investments 1,137 1,137 Unamortized prepaid bond insurance 71,048 71,048 Notes receivable, net 10,538 10,538 Due from Successor Agency Capital assets, net: 729,840 290,108 1,019,948 Nondepreciable 671,514 1,769,722 2,441,236 Depreciable 2,124,898 2,844,633 4,969,531 Total assets DEFERRED OUTFLOWS OF RESOURCES 1,508 19,215 20,723 Deferred charges on refunding bonds 15,050 5,119 20,169 Deferred OPEB related items 163,629 44,337 207,966 Deferred pension related items 180,187 68,671 248,858 Total deferred outflows of resources LIABILITIES 26,721 87,528 114,249 Accounts payable 8,734 1,644 10,378 Wages payable 28,950 28,950 Due to other governments 4,762 12,421 17,183 Interest payable 132 132 Arbitrage rebate liability 7,251 8,963 16,214 Deposits 3,659 3,340 6,999 Unearned revenues Long-term liabilities: 56,612 34,191 90,803 Due within one year 670,023 1,313,643 1,983,666 Due in more than one year 2,998 2,998 Interest payable 186,652 138,177 48,475 Net other postemployment benefits (OPEB) liability 603,170 174,575 777,745 Net pension liability 3,235,969 1,548,059 1,687,910 Total liability DEFERRED INFLOWS OF RESOURCES 103,773 103,773 Deferred regulatory credits 638 638 Deferred item on refunding bonds 13,838 10,245 3,593 Deferred OPEB related items 28,480 22,916 5,564 Deferred pension related items 146,729 33,161 113,568 Total deferred inflows of resources NET POSITION 2,017,791 1,008,489 1,009,302 Net investment in capital assets Restricted for: 22,769 22,769 Debt service 53,504 152,081 98,577 Capital projects 106,596 106,596 Community and economic development 44,358 44,358 Streets, roads and transportation improvement projects 28,042 17,452 10,590 Other purposes 15,661 (535,946) (551,607) Unrestricted 1,111,826 $ 1,835,691
$ 723,865 $
Total net position 29 The accompanying notes are an integral part of these financial statements.
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CITY OF ANAHEIM Statement of Activities Year Ended June 30, 2018 (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 $ 30,330 $ (14,685) $ 1,749 $ 782 $ (13,114) $ (13,114) Police 170,378 3,543 15,361 6,793 $ 997 (150,770) (150,770) Fire & Rescue 80,607 921 11,621 1,193 132 (68,582) (68,582) Community & Economic Development 95,620 447 7,421 86,781 (1,865) (1,865) Planning & Building 24,278 1,098 16,573 1,918 (6,885) (6,885) Public Works 55,969 12 17,378 17,096 18,415 (3,092) (3,092) Community Services 38,270 750 3,227 957 11,639 (23,197) (23,197) Public Utilities 2,346 (2,346) (2,346) Convention, Sports & Entertainment 19,660 270 14,231 8,157 2,458 2,458 Interest on long-term debt 34,938 (34,938) (34,938) Total governmental activities 552,396 (7,644) 87,561 115,520 39,340 (302,331) (302,331) Business-type activities: Electric Utility 389,997 4,577 443,755 4,206 $ 53,387 53,387 Water Utility 74,611 1,144 79,074 855 4,174 4,174 Sanitation Utility 60,649 496 65,138 88 458 4,539 4,539 Golf Courses 4,781 117 4,273 (625) (625) Convention, Sports & Entertainment Venues 64,748 1,310 44,984 2,834 (18,240) (18,240) ARTIC Management 6,218 1,343 (4,875) (4,875) Total business-type activities 601,004 7,644 638,567 88 8,353 38,360 38,360 Total government $ 1,153,400 $ $ 726,128 $ 115;608 $ 47,693 (302,331) 38,360 $ (263,971) General revenues: Taxes: Property taxes 76,547 76,547 Sales and use taxes 80,732 80,732 Transient o_ccupancy taxes 154,925 154,925 Other taxes 9,076 9,076 Gain on sale of capital asset 6,258 6,258 Unrestricted investment earnings 2,783 .i,423 7,206 Other 105 105 Transfers 4,114 (4,114) Total general revenues and transfers 334,540 309 334,849 Change in net position 32,209 38,669 70,878 Net position at beginning of year, as adjusted 691,656 1,073,157 1,764,813 Net position at end of year $ 723,865 $ 1,111,826 $ 1,835,691 31 The accompanying notes are an integral part of these financial statements.
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CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2018 (In thousands) Nonmajor Total Housing Governmental Governmental General Authority Funds Funds ASSETS Cash and cash equivalents $ 9,482 $ 17,466 $ 23,935 $ 50,883 Investments 31,390 61,241 84,287 176,918 Accounts receivable, net 17,630 15 1,702 19,347 Accrued interest receivable 152 255 383 790 Due from other funds 1,544 2,150 12,060 15,754 Due from other governments 16,983 167 21,434 38,584 Inventories 238 238 Land held for resale, net 6,032 22,982 29,014 Prepaid and other assets 281 34 9,091 9,406 Restricted cash and cash equivalents 963 43,826 44,789 Restricted investments 153,838 153,838 Notes receivable, net 47,017 24,031 71,048 Due from Successor Agency 10,538 10,538 Total assets $ 77,700 $ 135,340 $ 408,107 $ 621,147 LIABILITIES
$ 7,948 $ 706 $ 13,081 $ 21,735 Accounts payable 3,957 76 352 4,385 Wages payable 5,579 110 1,562 7,251 Deposits Due to other funds 361 14,516 14,877 2 1,500 1,502 Due to other governments 589 493 22 1,104 Unearned revenue Total liabilities 18,434 1,387 31,033 50,854 DEFERRED INFLOWS OF RESOURCES 989 148 14,055 15,192 Unavailable revenues 47,017 24,031 71,048 Unavailable resources- long-term notes receivable 10,538 10,538 Unavailable resources - due from Successor Agency 989 47,165 48,624 96,778 Total deferred inflows of resources FUND BALANCES:
Nonspendable : 238 238 Inventory 281 34 9,091 9,406 Prepaid and other assets Restricted: 5,286 5,286 Anaheim Resort maintenance and improvement 7,664 7,664 Capital projects 5,124 5,124 Claims and judgments 23,301 23,301 Community & economic development projects 148,492 148,492 Debt service 92,302 92,302 Development impact projects 70 4,360 4,430 Grant purposes 944 6,958 7,902 Homebuyer assistance programs 57,041 57,041 Low and moderate income housing 2,195 2,195 Rental assistance 31,671 31,671 Streets, roads and transportation improvement projects Committed: 4,063 4,063 Capital projects Assigned: 5,237 5,237 Capital projects 1,560 1,560 Debt service 26,574 26,574 Housing projects 11,008 11,008 Other purposes 30,021 41,556 (11,535) Unassigned 473,515 58,277 86,788 328,450 Total fund balances 621,147
$ 77,700 $ 135,340 $ 408,107 $
Total liabilities, deferred inflows of resources, and fund balances 33 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2018 (In thousands) Total fund balances - governmental funds $ 473,515 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 $ 658,827 Construction in progress 68,310 Buildings, structures and improvements 349,644 Machinery and equipment 68,105 Infrastructure 874,960 Accumulated depreciation (646,667) Total capital assets, net 1,373,179 Other long-term assets are* not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the funds. 96,778 Unamortized prepaid bond insurance ($1,137) and deferred charge on refunding bonds ($1,508) are not current financial resources, and, therefore, are not reported in the funds. 2,645 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. 21,311 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. (616) Certain liabilities are not due and payable in the current period, and therefore, are not reported in the funds. (27,448) Effects of net pension liability and net OPEB liability are not due and payable in the current period, and therefore, are not reported in the funds. Deferred outflows of resources 166,384 Net OPEB obligation (127,709) Net pension obligation (571,968) Deferred inflows of resources (31,280) (564,573) Long-term liabilities of governmental funds, including revenue bonds ($621,675), notes and loans payable ($24,554), and accrued interest payable ($4,697) are not due and payable in the current period and, therefore, are not reported in the funds. (650,926) Net position of governmental activities $ 723,865 34 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2018 (In thousands) Nonmajor Total Housing Governmental Governmental General Authority Funds Funds Revenues: Property taxes $ 76,547 $ 76,547 Sales and use taxes 81,680 81,680 Transient occupancy taxes 154,925 154,925 Other taxes 8,311 8,311 Licenses, fees and permits 31,342 $ 77 $ 13,628 45,047 Intergovernmental revenues 2,972 78,929 42,795 124,696 Charges for services 20,538 23,444 43,982 Fines, forfeits and penalties 2,988 2,988 Use of money and property 9,512 8,972 8,317 26,801 Other 984 170 24 1,178 Total revenues 389,799 88,148 88,208 566,155 Expenditures: Current: City Council 847 847 City Administration 3,702 3,702 City Attorney 6,816 120 6,936 City Clerk 1,083 44 1,127 1,998 1,998 Human Resources Finance 6,695 53 6,748 Police 148,598 7,740 156,338 73,375 1,513 74,888 Fire & Rescue 1,682 82,113 10,060 93,855 Community & Economic Development 22,161 1,488 23,649 Planning & Building 20,209 14,122 34,331 Public Works 32,131 1,911 34,042 Community Services 2,341 2,341 Public Utilities 749 13,890 14,639 Convention, Sports & Entertainment 1,530 6,650 38,186 46,366 Capital outlay Debt service: 14,749 14,749 Principal retirement 28,412 28,412 Interest charges 323,917 88,763 132,288 544,968 Total expenditures 65,882 (615) (44,080) 21,187 Excess of revenues over expenditures Other financing sources (uses): 97,513 27,631 2,161 67,721 Transfers in (93,285) (86,685) (6,600) Transfers out 2,250 2,250 Issuance of loan payable (59,054) 2,161 63,371 6,478 Total other financing sources (uses) 6,828 1,546 19,291 27,665 Net change in fund balances 445,850 51,449 85,242 309,159 Fund balances at beginning of year 473,515
$ 58,277 $ 86,788 $ 328,450 $
Fund balances at end of year 35 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2018 (In thousands) Net change in fund balances - total governmental funds $ 27,665 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 ($46,366) exceeded depreciation ($33,359) in the current period .. 13,007 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. (114) The net effect of other miscellaneous transactions involving capital assets (i.e., sales, trade-in, retirements and contributions) is to decrease net position. 13,657 Revenues in governmental funds provide current financial resources but have been included in the Statement of Activities in prior fiscal year. (16) Collections of notes and long-term receivables provide current financial resources to governmental funds but reduce receivables in the Statement of Net Position. (8,331) 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 (2,250) Payments of principal on long-term debt use current financial resources in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position. 14,749 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. (6,386) Net effect of accrued net pension liabilities and the related deferred outflows and deferred inflows of resources are not (21,343) reported as expenditures in the funds. 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. 1,571
$ 32,209 Change in net position of governmental activities 36 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - General Fund Year Ended June 30, 2018 (In thousands) Original Final Budgeted Budgeted Actual Variance with Amounts Amounts Amounts Final Budget Revenues: Property taxes $ 73,082 $ 75,753 $ 76,547 $ 794 Sales and use taxes 82,203 82,203 81,680 (523) Transient occupancy taxes 154,600 154,600 154,925 325 Other taxes 8,419 8,419 8,311 (108) Licenses, fees and permits 23,452 23,452 31,342 7,890 Intergovernmental revenues 2,260 2,260 2,972 712 Charges for services 19,325 19,325 20,538 1,213 Fines, forfeits and penalties 2,827 2,827 2,988 161 Use of money and property 2,q62 2,562 9,512 6,950 Other 4,144 1,605 1,535 (70) Total revenues 372,874 373,006 390,350 17,344 Expenditures: City Council 968 968 847 (121) City Administration 3,769 3,869 3,714 (155) City Attorney 7,197 7,197 6,851 (346) City Clerk 1,264 1,319 1,083 (236) Human Resources 2,172 2,172 1,998 (174) Finance 6,981 6,864 6,695 (169) Police 148,437 148,598 148,598 Fire & Rescue 71,111 73,846 73,846 Community & Economic Development 1,857 1,857 1,775 (82) Planning & Building 21,083 22,161 22,161 Public Works 18,032 20,277 20,277 Community Services 32,769 33,610 33,160 (450) Public Utilities 2,552 2,552 2,341 (211) Convention, Sports & Entertainment 822 870 870 Total expenditures 319,014 326,160 324,216 (1,944) Excess of revenues over expenditures 53,860 46,846 66,134 19,288 Other financing sources (uses): Transfers in 28,524 28,524 27,631 (893) Transfers out (82,521) (82,521) (86,685) (4,164) Total other financing uses (53,997) (53,997) (59,054) (5,057) Net change in fund balance (137) (7,151) 7,080 14,231 Fund balance at beginning of year 51,449 51,449 51,449 Fund balance at end of year $ 51,312 $ 44,298 58,529 $ 14,231 Adjustment to reconcile to GAAP: Receipt of interfund receivable (551) Acquisition of capital assets using funds from interfund loan 299 Ending fund balance - GAAP basis $ 58,277 37 The accompanying notes are an integral 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, 2018 (In thousands)
- Original Final Budgeted Budgeted Actual Variance with Amounts Amounts Amounts Final Budget Revenues:
Licenses, fees and permits $ 30 $ 30 $ 77 $ 47 Intergovernmental revenues 76,218 76,218 78,929 2,711 Use of money and property 586 586 9,285 8,699
- Other 1,619 1,619 170 (1,449)
Total revenues 78,453 78,453 88,461 10,008 Expenditures: Community and Economic Development 126,178 126,178 88,458 (37,720) Total expenditures 126,178 126,178 88,458 (37,720) Excess (deficiency) of revenues over expenditures (47,725) (47,725) 3 47,728 Other financing sources (uses): Transfers in 11 11 Transfers out Total other financing sources 11 11 Net change in fund balance (47,725) (47,725) 14 47,739 Fund balance at beginning of year 85,242 85,242 85,242 Fund balance at end of year $ 37,517 $ 37,517 85,256 $ $47,739 Adjustments to reconcile to GAAP: Park fee credits received from the City for future housing projects 2,150 Swap of land held for resale parcel with the City (258) Sale of land held for resale (313) Cost of improvements to land held for resale 11 Decline in value of land held for resale (92) Prepaid software maintenance 34 Ending fund balance - GAAP basis $ 86,788 38 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2018 (In thousands) Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities - Electric Water Sanitation Golf Entertainment ARTIC Internal Utility Utility Utility Courses Venues Management Total Service ASSETS Current assets: Cash and cash equivalents $ 19,964 $ 8,236 $ 10,478 $ $ 10,317 $ 115 $ 49,111 $ 20,245 Investments 70,309 29,005 36,904 36,060 172,278 71,303 Restricted cash and cash equivalents 26,037 3,462 2,193 8,443 40,135 526 Restricted investments 45,606 3,802 6,318 55,726 Accounts receivable, net 48,052 6,109 8,038 1,71 4,420 581 67,371 2,221 Accrued interest receivable 696 160 182 191 1,229 254 Interfund receivable 451 451 198 Inventories 16,786 784 17,570 994 Prepaid and other assets 22,608 1,565 5 46 132 24,356 3,311 Total current assets 250,509 53,123 64,118 172 59,477 828 428,227 99,052 Noncurrent assets: Restricted cash and cash equivalents, less current portion 145,738 1,073 2,217 11,435 160,463 904 Restricted investments, less current portion 80,593 34,291 14,063 7,373 136,320 Accounts receivable, less current portion 2,301 lnterfund receivable, less current portion 2,480 2,480 53 Prepaid and other assets 75,199 75,199 Capital assets: Land 34,243 2,339 316 1,949 18,135 32,523 89,505 Buildings, structures and improvements 120,688 18,858 706,559 171,041 1,017,146 9,493 Utility plant 1,304,690 455,574 1,760,264 Machinery and equipment 8,517 820 21,261 2,482 33,080 75,063 Construction in progress 144,398 45,237 9,611 1,357 200,603 2,703 Total capital assets 1,483,331 503,150 139,132 21,627 747,312 206,046 3,100,598 87,259 Less accumulated depreciation (559,890) (162,510) (24,527) (12,867) (272,852) (8,122) (1,040,768) (59,084) Capital assets, net 923,441 340,640 114,605 8,760 474,460 197,924 2,059,830 28,175 Total noncurrent assets 1,227,451 376,004 130,885 8,760 493,268 197,924 2,434,292 31,433 Total assets 1,477,960 429,127 195,003 8,932 552,745 198,752 2,862,519 130,485 DEFERRED OUTFLOWS OF RESOURCES: Deferred charge on refunding bonds 14,088 4,955 172 19,215 Deferred OPES related items 2,568 973 666 44 868 5,119 1,123 Deferred pension related items 22,723 7,332 4,659 315 9,308 44,337 11,172 Total deferred outflows of resources 39,379 13,260 5,325 359 10,348 68,671 12,295 39 (continued)
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2018 (In thousands) (continued) Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities - Electric Water Sanitation Golf Entertainment ARTIC Internal Utility Utility Utility Courses Venues Management Total Service LIABILITIES Current liabilities (payable from current assets): Accounts payable $ 40,760 $ 14,648 $ 5,762 $ 426 $ 1,956 $ 384 $ 63,936 $ 4,986 Wages payable 563 239 102 8 521 1,433 4,349 Interest payable 1,879 1,879 65 Compensated absences 11,986 Long-term liabilities 5,273 649 5,098 3,500 14,520 13,770 Unearned revenues 3,340 3,340 2,555 Deposits 4,735 368 604 3 3,209 44 8,963 lnterfund payable 344 1,238 1,582 231 Total current liabilities (payable from current assets) 51,331 15,599 7,117 1,675 16,003 3,928 95,653 37,942 Current liabilities (payable from restricted assets): Accounts payable 12,885 1,878 507 8,322 23,592 Wages payable 203 5 3 211 Interest payable 7,544 1,896 984 118 10,542 Arbitrage rebate liability 132 132 Long-term liabilities 15,731 3,490 450 19,671 Total current liabilities (payable from restricted assets) 36,495 7,264 1,946 8,443 54,148 Total current liabilities 87,826 22,863 9,063 1,675 24,446 3,928 149,801 37,942 Noncurrent liabilities: lnterfund payable, less current portion 2,064 2,064 182 Interest payable 2,998 2,998 Long-term obligations, less current portion 725,879 170,854 53,550 233,837 13,000 1,197,120 54,034 24,486 9,136 6,126 425 8,302 48,475 10,468 Net OPES liability 91,561 29,417 16,674 1,232 35,691 174,575 31,202 Net pension liability 116,523 116,523 Provision for decommissioning costs 958,449 211,471 76,350 1,657 277,830 15,998 1,541,755 95,886 Total noncurrent liabilities 1,046,275 234,334 85,413 3,332 302,276 19,926 1,691,556 133,828 Total liabilities DEFERRED INFLOWS OF RESOURCES 101,584 2,189 103,773 Regulatory credits 638 638 Deferred item on refunding bonds 1,815 677 454 32 615 3,593 777 Deferred OPES related items 2,483 1,755 376 28 922 5,564 1,104 Deferred pension related items 105,882 4,621 1,468 60 1,537 113,568 1,881 Total deferred inflows of resources NET POSITION 291,606 204,196 71,263 8,760 252,053 181,424 1,009,302 24,075 Net investment in capital assets Restricted for: 19,364 2,955 450 22,769 Debt service 15,685 2,954 10,822 24,043 53,504 Capital projects 10,590 10,590 other purposes (17,004) 27,937 (6,673) 30,912 (2,861) (16,816) (2,598) 29,901 Unrestricted 365,182 $ 203,432 $ 113,447 $ 5,899 $ 259,280 $ 178,826 1,126,066 $ 7,071 Total net position $ (14,240) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
$ 1,111,826 Net position of business-type activities 40 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Year Ended June 30, 2018 (In thousands) Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities - Electric Water Sanitation Golf Entertainment ARTIC Internal Utility Utility Utility Courses Venues Management Total Service Funds Operating revenues: Sales of retail and wholesale electricity, net $ 400,627 $ 400,627 Transmission revenues 37,356 37,356 Sales of water, net $ 77,903 77,903 Solid waste collection fees $ 46,741 46,741 Wastewater fees 13,500 13,500 Street cleaning fees 3,248 3,248 Green fees and cart rentals $ 3,831 3,831 Facilities rental $ 31,611 $ 1,307 32,918 Concession fees 238 11,391 11,629 Charges for services $ 146,416 other 5,772 1,171 1,649 204 1,982 36 10,814 116 Total operating revenues 443,755 79,074 65,138 4,273 44,984 1,343 638,567 146,532 Operating expenses: Cost of purchased power 244,687 244,687 Fuel and generation of power 19,676 19,676 Cost of purchased water 35,028 35,028 Treatment and pumping of water 7,954 7,954 Maintenance, operations and administration 60,429 15,949 56,605 4,393 41,430 3,548 182,354 52,018 Insurance premiums and claims 19,229 Compensated absences and other benefits 67,015 Depreciation and amortization 48,972 11,157 2,900 497 16,469 2,307 82,302 6,027 Total operating expenses 373,764 70,088 59,505 4,890 57,899 5,855 572,001 144,289 Operating income (loss) 69,991 8,986 5,633 (617) (12,915) (4,512) 66,566 2,243 Nonoperating income (expenses): Intergovernmental revenues 88 88 Investment income 2,401 1,057 496 (11) 492 (12) 4,423 8 Interest expense (21,135) (5,776) (1,706) (8,003) (363) (36,983) (169) Gain (loss) from disposal of capital assets (2) (12) (261) (275) 100 Total nonoperating expenses (18,734) (4,719) (1,124) (23) (7,772) (375) (32,747) (61) Income (loss) before contributions and transfers 51,257 4,267 4,509 (640) (20,687) (4,887) 33,819 2,182 Capital contributions 4,206 855 572 2,834 8,467 Transfers in 492 600 16,571 5,988 23,651 Transfers out (22,612) (1,536) (2,806) (925) (27,879) Change in net position 33,343 4,186 2,275 (640) (2,207) 1,101 38,058 2,182 331,839 199,246 111,172 6,539 261,487 177,725 4,889 Net position at beginning of year, as adjusted
$ 365,182 $ 203,432 $ 113,447 $ 5,899 $ 259,280 $ 178,826 $ 7,071 Net position at end of year Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 611 Change in net position of business-type activities $ 38,669 41 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2018 (In thousands) Business-type Activities - Enterprise Funds. Convention, Governmental Sports and Activities - Electric Water Sanitation Golf Entertainment ARTIC Internal Utility Utility Utility Courses Venues Management Total Service Funds Cash flows from operating activities: Receipts from customers and users $ 444,654 $ 79,101 $ 63,320 $ 3,803 $ 44,426 $ 927 $ 636,231 Receipts from interfund services provided 3,439 308 20 3,767 $ 146,416 Payments to suppliers (268,313) (35,749) (42,562) (3,464) (13,366) (3,395) (366,849) (30,851) Payments for salaries, wages and other benefits (46,657) (15,732) (8,365) (577) (21,702) (93,033) (85,094) Payments for interfund services used (14,377) (5,249) (3,356) (199) (3,488) (42) (26,711) (4,565) Payments for insurance premiums and claims (15,681) Other receipts 1,615 442 43 2,100 141 Net cash provided by (used for) operating activities 118,746 22,679 10,672 5 5,870 (2,467) 155,505 10,366 . Cash flows from noncapital financing activities: Receipt of interfund balances 18 1,238 1,256 1,027 Payment of interfund balances (541) (344) (700) (1,585) (1,054) Payment of decommissioning costs (6,866) (6,866} Transfers in 600 2,488 3,088 Transfers out (22,612) (1,044) (2,806) (925) (27,387) Operating grant receipts 88 88 Net cash provided by (used for} noncapital financing activities (30,001) (788) (2,718) 538 (925) 2,488 (31,406) (27) Cash flows from capital and related financing activities: Proceeds from sale of capital assets 133 Capital contributions 3,166 855 181 4,202 Capital purchases (65,592) (30,327) (8,300) (6) (25,276) (129,501) (4,539) Proceeds from issuance of bonds 273,772 54,741 328,513 Transfer to refunded bond escrow agent (274,663) (39,452) (314,115) Debt Issuance costs (1,135} (278) (1,413) Principal payments on long-term debt (21,334) (3,370) (1,114) (4,847) (3,500) (34,165) (2,610) Interest payments (28,614) (7,679) (1,906) (11,317) (49,516) (198) Receipt of capital grant 380 Receipt of interfund balances for capital purposes 344 344 231 Payment of interfund balances for capital purposes (551) (551) (7) Transfers in for capital purposes 17 16,571 3,500 20,088 Transfers out for capital purposes (17) (17) Net cash provided by (used for) capital and related financing (114,039) (40,538) 3,691 (557) (24,688) (176,131) (6,610) activities Cash flows from investing activities: (86,583) (48,453) (34,561) (17,110) (186,707) (33,830) Purchase of investment securities 65,016 7,224 17,084 20 57,919 147,263 29,464 Proceeds from sale and maturity of investment securities 5,597 1,368 983 1,038 8,986 812 Interest received (11) (12) (23) (7) Interest paid (15,970) (39,861) (16,494) 9 41,847 (12) (30,481) (3,561) Net cash provided by (used for) investing activities (41,264) (58,508) (4,849) (5) 22,104 9 (82,513) 168 Increase (decrease) in cash and cash equivalents 233,003 71,279 19,737 6 8,091 106 332,222 21,507 Cash and cash equivalents at beginning of the year
$ 191,739 $ 12,771 $ 14,888 $ 1 $ 30,195 $ 115 $ 249,709 21,675 Cash and cash equivalents at end of the year 42 (continued)
CITY OF ANAHEIM Statement of Cash Flows _Proprietary Funds Year Ended June 30, 2018 (In thousands) (continued) Business-type Activities - Enterprise Funds Convention, Governmental Sports and Activities - Electric Water Sanitation Golf Entertainment ARTIC Internal Utility Utility Utility Courses Venues Management Total Service Funds Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) $ 69,991 $ 8,986 $ 5,633 $ (617) $ (12,915) $ (4,512) $ 66,566 $ 2,243 Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation . 48,972 11,157 2,900 497 16,469 2,307 82,302 6,027 Increase in provision for decommissioning costs 5,890 5,890 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: Accounts receivable 407 (55) (222) (28) (24) (363) (285) 983 Inventories (2,819) (109) 2 (2,926) (84) Prepaids and other assets (2,426) 331 (5) 13 11 (2,076) (221) Accounts payable (9,978) 808 1,418 99 486 100 (7,067) (2,882) Wages and benefits payable 4,778 1,171 909 54 2,373 9,285 1,475 Unearned revenues (82) (10) (92) 275 Deposits 565 37 39 (452) 189 Compensated absences and self-insurance liability 2,550 Regulatory credits 3,366 353 3,719 Total adjustments - 48,755 13,693 5,039 ~ 18,785 2,045 88,939 8,123
--. 5,870 (2,467) $ 155,505 $ 10,366 Net cash provided by (used for) operating activities $ 118,746 $ 22,679 $ 10,672 $ $ $
Schedule of noncash investing, capital and noncapital financing activities:
$ 1,184 Capital assets financed through capital leases
$ 1,040 $ 572 $ 2,653 $ 4,265 Capital contributions Transfers in (out) of capital assets 475 $ (475)
(1,760) (367) (494) (428) (3,049) (831) Decrease in fair value of investments Reconciliation of cash and cash equivalents:
$ 19,964 $ 8,236 $ 10,478 $ $ 10,317 $ 115 $ 49,111 $ 20,245 Cash and cash equivalents 26,037 3,462 2,193 8,443 40,135 526 Restricted cash and cash equivalents, current portion 145,738 1,073 2,217 11,435 160,463 904 Restricted cash and cash equivalents, noncurrent portion - $ 191,739 $ 12,771 $ 14,888 $ $ 30,195 $ 115 $ 249,709 $ 21,675 Total cash and cash equivalents 43 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM
- statement of Fiduciary Net Position (Deficit)
Fiduciary Funds June 30, 2018 (In thousands) Successor Investment Agency Trust Private Purpose Agency Funds Trust Fund Funds ASSETS Restricted cash and cash equivalents $ 352 $ 30,240 $ 2,659 Restricted investments 1,239 96 4,600 Accrued interest receivable 6 57 Accounts receivable, net 2 28 Notes receivable, net 827 Prepaid and other assets 128 Unamortized prepaid bond insurance 718 Total assets 1,597 32,068 7,287 LIABILITIES Accounts payable 47 Wages payable 1 Interest payable 4,832 Unearned revenues 6 Due to bond holders 7,287 Long-term liabilities: Due within one year 9,133 Due in more than one year 202,785 Total liabilities 216,804 $ 7,287 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding bonds 292 Total deferred outflows of resources 292 NET POSITION Held in trust for pool participants 1,597 Held in trust for other purposes (deficit) (185,028} Total net position (deficit) $ 1,597 $ (185,028} 44 The ac~ompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Statement of Changes in Fiduciary Net Position (Deficit) Fiduciary Funds c' Year Ended June 30, 2018 (In thousands) Successor Investment Agency Trust Private Purpose Funds Trust Fund ADDITIONS Property taxes $ 26,880 Contributions to pooled investments $ 7,494 Interest and investment income 13 628 Rental income 432 Other 177 Total additions 7,507 28,117 DEDUCTIONS Distributions from pool investments 7,383 Salaries and administration 449 Program expenses 1,035 Interest expense 10,471 Total deductions 7,383 11,955 124 16,162 Change in net position _
- Net position (deficit) held in trust at beginning of year 1,473 (201,190)
$ 1,597 $ (185,028)
Net position (deficit) held in trust at end of year 45 The accompanying notes are an integral part of these financial statements.
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CITY OF ANAHEIM into various governmental and business-type activities and funds of the City Notes to Financial Statements as applicable. (Amounts in thousands) Anaheim Housing and Public Improvement Authority (AHPIA), a joint power NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES: authority, was created by and between the City and the Anaheim Housing The financial reporting entity
- Authority as a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments and mechanisms. Members of As defined by U. S. generally accepted accounting principles (GAAP) that the City Council of the City serves as the members of the Board and are established by the Governmental Accounting Standards Board (GASB), Directors of the AHPIA. Financial activity of the AHPIA has been blended the financial reporting entity consists of the primary government, as well as into the City's CAFR into various business-type activities and funds of the its component units, which are legally separate organizations for which the City as applicable.
elected officials of the primary government are financially accountable. Financial accountability is defined as 1) appointment of a voting majority of The City is a participant in four joint ventures and jointly-owned properties the component unit's board, and either a) the ability to impose will by the (see note 12), which are not considered part of the financial reporting entity, primary government, or b) the possibility that the component unit will as the City does not have significant equity interests in the joint ventures provide a financial benefit to or impose a financial burden on the primary and jointly-owned properties. government; and 2) the component unit is fiscally dependent on and there is The City is a participant in the California Municipal Finance Authority a potential for the component unit to provide specific financial benefit to or (CMFA), a non-profit Joint Power Authority created to strengthen local impose financial burden on the primary government regardless of whether communities by assisting with the financing of economic development and the component unit has a) a separately elected government board, b) a charitable activities throughout the State of California. The CMFA acts as governing board appointed by a higher level of government, or c) a jointly conduit issuer by assisting local governments, non-profits and businesses appointed board. with the issuance of taxable and tax-exempt financing aimed at improving The accompanying financial statements present the City of Anaheim (City), the quality of life in California. The City has no financial, budgeting and the primary government, and its component units. The financial data of the operational obligations and responsibilities of the CMFA. The CMFA is a component units are included in the City's reporting entity because of the jointly governed organization. The City has recorded assets and liabilities significance of their operational or financial relationships with the City. . from the City's debt issuances through the CMFA in the business-type activities and funds of the City as applicable (see note 8). The component units described below are each legally separate from the City, but are so intertwined with the City that they are, in substance, the Basic financial statements same as the City. They are reported as part of and accountable to the City In accordance with GASB Statement No. 34 - Basic Financial Statements and blended into the government-wide and fund financial statements. and Management's Discussion and Analysis for State and Local Anaheim Housing Authority (Housing Authority) is a separate entity Governments, the basic financial statements include both government-wide primarily funded by the U.S. Department of Housing and Urban and fund financial statements. Development to administer funds received under the Federal Housing The government-wide financial statements (Statement of Net Position and Assistance Payments program. City Council members, in separate session, Statement of Activities) report on the City and its component units, serve as the governing board of the Housing Authority. All budgeting, excluding fiduciary activities. Governmental activities, which normally are accounting and administrative functions of the Housing Authority are supported by taxes and intergovernmental revenues, are reported performed by the City. The financial activity of the Housing Authority has separately from business-type activities, which rely to a significant extent on been blended into the City's Comprehensive Annual Financial Report fees and charges for support. All activities, both governmental and (CAFR) in the government-wide governmental activities and in the fund business-type, are reported in the government-wide financial statements financial statements as the Housing Authority Special Revenue Fund. using the economic resources measurement focus and the accrual basis of Anaheim Public Financing Authority (APFA), a joint powers authority, was accounting, which includes long-term assets and receivables as well as established as a vehicle to reduce local borrowing costs and promote long-term debt and obligations. The government-wide financial statements greater use of existing and new financial instruments and mechanisms. City focus more on the sustainability of the City as an entity and the change in Council members, in separate session, serve as the governing board of the aggregate financial position resulting from the activities of the fiscal period. APFA. Financial activity of the APFA has been blended into the City's CAFR 47
CITY OF ANAHEIM Generally, the effect of interfund activity has been removed from the revenues. The general revenues support the net costs of the functions and government-wide financial statements, except for interfund services programs not covered by program revenues. provided and used. Net interfund activity and balances between Also, part of the basic financial statements are fund financial statements for governmental activities and business-type activities are shown as internal governmental funds, proprietary fund~ and fiduciary funds, even though the balances, net, in the government-wide financial statements. The "doubling latter are excluded from the government-wide financial statements. The up" effect of internal service fund activity has been eliminated from the focus of the fund financial statements is on major funds, as defined by government-wide financial statements with the expenses shown in the GASB Statement No. 34. Although this reporting model sets forth minimum various functions and programs on the Statement of Activities. criteria for determination of major funds (a percentage of assets, deferred Further, certain eliminations are also made to transfers of resources outflows of resources, liabilities, deferred inflows of resources, revenues, or between funds in the fund financial statements so that only the net amount expenditures/expenses of fund category and of the governmental and of the transfers are shown in the governmental activities and business-type enterprise funds combined), it also gives governments the option of activities columns. displaying other funds as major funds. Other nonmajor funds, as well as the internal service funds, are combined in a single column on the fund financial The government-wide Statement of Net Position reports all financial and statements. capital resources of the City (excluding fiduciary funds). It is displayed in a format of assets and deferred outflows of resources less liabilities and The City reports the following major governmental funds: deferred inflows of resources equal net position, with the assets and The General Fund is the City's primary operating fund. It accounts for all liabilities shown in order of their relative liquidity. Net positions are required financial resources of the general government, except those required to to be displayed in three components: 1) net investment in capital assets 2) be accounted for in another fund. restricted, and 3) unrestricted. Investment in capital assets represents capital assets net of accumulated depreciation which is reduced by The Housing Authority Special Revenue Fund accounts for the providing of housing assistance to low and moderate-income families in the outstanding balances of any bonds, notes or other borrowings that are Anaheim area. Financing is provided primarily from Federal Section 8, attributable to the acquisition, construction, or improvement of those assets. U.S. Department of Housing and Urban Development (HUD) receipts. Restricted net position is those with constraints placed on their use by either: 1) creditors (such as through debt covenants), grantors, contributors, The City reports the following major enterprise funds: or laws or regulations of other governments, or 2) law through constitutional The Electric Utility Fund accounts for the operation of the City's electric provisions or enabling legislation. All net positions not otherwise classified utility, a self-supporting activity, which renders services on a user charge as restricted, are shown as unrestricted. Generally, the City would first apply basis to residents and businesses located in Anaheim. restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net positions are available. 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 The government-wide Statement of Activities demonstrates the degree to basis to residents and businesses located in Anaheim. which both direct and indirect expenses of the various functions and The Sanitation Utility Fund accounts for the operation of the City's solid programs of the City are offset by program revenues. Direct expenses are waste and sanitation program, a self-supporting activity, which provides those that are clearly identifiable with a specific function or program. Indirect for the collection and disposal of solid waste, street sweeping, and expenses for administrative overhead are allocated among the functions sanitary sewer cleaning on a user charge basis to residents and and programs using a full cost allocation approach and are presented businesses located in Anaheim. separately to enhance comparability of direct expenses between The Golf Courses Fund accounts for the operation of the Anaheim governments that allocate direct expenses and those that do not. Interest Municipal ("Dad Miller") Golf Course and the Anaheim Hills Golf Course, on general long-term debt is not allocated to the various functions. Program a self-supporting activity that renders services on a user charge basis. revenues include: 1) charges to customers or users who purchase, use or directly benefit from goods, services or privileges provided by a particular The Convention, Sports & Entertainment Venues Fund accounts for the function or program and 2) grants and contributions that are restricted to operations of the Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim. See note 13 for meeting the operational or capital requirements of a particular function or further discussions of the Angel Stadium of Anaheim and The City program. Taxes, unrestricted investment income and other revenues not National Grove of Anaheim. identifiable with particular functions or programs are included as general 48
CITY OF ANAHEIM Anaheim Regional Transportation lntermodal Center (ARTIC) the City, dissolved on February 1, 2012 under the State of California Management Fund accounts for the operation and maintenance of the Assembly Bill 1X26. ARTIC that serves as a rail station for Amtrak intercity rail, Metrolink The Agency Funds are used to account for the monies collected and commuter rail and bus station. The ARTIC renders services on a user paid on behalf of the Mello-Roos Districts located in the City. charge basis. Measurement focus and basis of accounting The internal service funds, which provide services to the other funds of the City, are presented in a single column in the proprietary funds financial The governmental funds financial statements are prepared on a current statements. Because the principal users of the internal service funds are the financial resources measurement focus and modified accrual basis of City's governmental activities, the assets and liabilities of the internal accounting. To conform to the modified accrual basis of accounting, certain service funds are consolidated into the governmental activities column of modifications must be made to the accrual method. These modifications are the government-wide Statement of Net Position. The costs of the internal outlined below: service fund services are spread to the appropriate function or program on Revenue is recorded when it is earned, measurable and available the government-wide Statement of Activities and the revenues and (received within 60 days after year-end). Revenue considered expenses within the internal service funds are eliminated from the susceptible to accrual includes: property taxes, sales and use taxes, government-wide financial statements to avoid any doubling effect of these transient occupancy taxes, licenses, fees and permits, revenues and expenses. The City operates four internal service funds: intergovernmental revenues (including motor vehicle license fees), charges for services, fines, forfeits and penalties, and investment The General Benefits and Insurance Fund is used to account for income. Due to certain unforeseen administrative delays, the City employee compensated absences, retirement and health benefits, and accrued sales tax of $1,894 that was received after the 60 days self-insurance programs. availability period as revenue at June 30, 2018. The Motorized Equipment Fund is used to account for motorized Expenditures are recorded when the related fund liability is incurred. equipment used by City departments. Principal and interest on general long-term debt are recorded as The Information and Communication Services Fund is used to account fund liabilities when due or when amounts have been accumulated for data processing and telecommunication services provided to City in the debt service fund for payments to be made early in the departments. following year. The Municipal Facilities Maintenance Fund is used to account for office Disbursements for the purchase of capital assets providing future maintenance services and equipment used by City departments. benefits are considered expenditures. Bond proceeds are reported as other financing source. Fiduciary Funds account for assets held by the City in a trustee or agency capacity on behalf of others and, therefore, are not available to support City With this measurement focus, operating statements present increases programs. The Fiduciary Funds are not included in the government-wide (revenues and other financing sources) and decreases (expenditures and financial statements as they are not an asset of the City. The City reports other financing uses) in net current assets. This is the traditional basis of the following fiduciary funds: accounting for governmental funds and also is the manner in which these funds are normally budgeted. This presentation is deemed most appropriate The Investment Trust Funds are used to account for the external portion to: 1) demonstrate legal and covenant compliance, 2) demonstrate the of the City's investment pool, which commingles resources of legally sources and uses of liquid resources, and 3) demonstrate how the City's separate entities administered by the City in an investment portfolio for actual revenues and expenditures conform to the annual budget. Since the the benefit of all participants. The entities include three Joint Powers governmental funds financial statements are presented on a different basis Authorities (JPA) governed by local boards. The City separately than the governmental activities column of the government-wide financial maintains these entities' money in three individual funds; these funds statements, a reconciliation is provided immediately following each fund represent the assets, primarily cash and investment, and the related net statement. These reconciliations briefly explain the adjustments necessary position held in trust by the City to disburse these monies on demand. to transform the fund financial statements into the governmental activities The Successor Agency Private Purpose Trust Fund is used to account column of the government-wide financial statements. for resources legally held in trust for use by the Successor Agency to the The proprietary funds financial statements are prepared on the same basis Former Anaheim Redevelopment Agency (Successor Agency). The (economic resources measurement focus and accrual basis of accounting) Former Anaheim Redevelopment Agency, a former component unit of as the government-wide financial statements. Therefore, most lines for the 49
CITY OF ANAHEIM total enterprise funds on the proprietary funds financial statements will obligations and agency securities and medium term corporate notes are directly reconcile to the business-type activities column on the government- carried at fair value based on quoted market prices. Nonparticipating wide financial statements. Because the enterprise funds are combined into guaranteed investment contracts, flexible repurchase agreements are a single business-type activities column on the government-wide financial carried at cost-based measure. Money market mutual funds and participating interest-earning investment contracts that have a remaining statements, certain interfund activities between these funds are eliminated maturity at the time of purchase of one year or less are carried at amortized in the consolidation for the government-wide financial statements, but are cost (which approximates fair value). The City's investment in the State of included in the fund columns in the proprietary funds financial statements. California Local Agency Investment Fund (LAIF) is carried at fair value The net costs of the internal service funds are also partially allocated to the based on the value of each participating dollar as provided by LAIF. LAIF is business-type activities column on the government-wide financial authorized by California Government Code (Government Code) Section statements. A reconciliation of the total enterprise funds on the fund 16429 under the oversight of the Treasurer of the State of California. financial statements to the business-type activities column on the Commercial paper, participating guaranteed investment contracts and government-wide financial statements is provided on the face of the fund negotiable certificates of deposit are carried at amortized cost (which 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 Enterprise funds account for operations where the intent of the City is that investment balances. See note 3 for further discussion. the costs of providing goods or services to the general public on a For purposes of the basic financial statements, the City considers cash continuing basis be financed or recovered primarily through user charges equivalents to be highly liquid short-term investments that are readily and fees. Under GASB Statement No. 34, enterprise funds are also convertible to known amounts of cash and mature within three months of required for any activity whose principal revenue sources meet any of the the date they are acquired. Cash and cash equivalents are included in the following criteria: 1) any activity that has issued debt backed solely by the City's cash and investments pool and in accounts held by fiscal agents. fees and charges of the activity, 2) the cost of providing services for an Notes receivable activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or it is the policy of the City In the government-wide financial statements, notes receivable of $71,048 to establish activity fees or charges to recover the cost of providing includes accrued interest receivable of $21,360, ranging from 3% to 10% services, including capital costs. interest per annum, and is net of allowances of $27,166 for uncollectible accounts at June 30, 2018. Allowances for uncollectible accounts were On the proprietary funds financial statements, operating revenues are those estimated based on certain assumptions; therefore, actual results could that flow directly from the operations of the activity, i.e. charges to differ from the estimates. customers or users who purchase or use the goods or services of that activity. Operating expenses are those that are incurred to provide those In the governmental funds financial statements, disbursements for providing goods or services. Non-operating revenues and expenses are items such notes and loan receivables are recorded as expenditures while the as investment income and interest expense that are not a result of the direct collections of these receivables are recorded as revenues. Due to the operations of the activity. extended period of time over which notes receivable are to be collected and the contingent nature of certain sources of repayment, the City has The Electric and Water Utility funds follow the uniform system of accounts recorded deferred inflows of resources equal to the outstanding principal prescribed by the Federal Energy Regulatory Commission (Electric Utility) and accrued interest balance, net of allowances of the notes receivable. and the California Public Utilities Commission (Water Utility). The utilities are not subject to the regulations of these commissions. Inventories The reporting focus for the investment trust fund and the private-purpose Inventories are stated at average cost which consist of expendable trust fund is upon net position and changes in net position and employs supplies, electrical parts, and vehicle repair parts.* The cost of such accounting principles similar to proprietary funds. The agency fund has no Inventories are recorded as expenditures/expenses when consumed rather measurement focus but utilizes the accrual basis of accounting for reporting than when purchased. its assets and liabilities. Prepaid and other assets Cash and investments Certain payments to vendors such as insurance premiums, prepaid power, The City pools available cash from all funds for the purpose of increasing prepaid rents, prepaid software maintenance and deposits for real property income through investment activities. Investments in U.S. Treasury acquisitions reflect costs applicable to future periods and are recorded as 50
CITY OF ANAHEIM prepaid and other assets in both government-wide and fund financial Capital assets are recorded at cost or estimated historical cost if purchased statements. The costs of these prepaid items are recorded as expenditures/ or constructed. Donated capital assets, donated works of art and similar expenses in the period when consumed or when the City receives title to items, and capital assets received in a service concession arrangement are the real property rather than when purchased. recorded at acquisition value rather than fair value at the date of donation. Land held for resale . The costs of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital assets lives are not capitalized. The Housing Authority has recorded parcels of land held for resale in their Major improvements are capitalized and depreciated over the remaining financial records. The properties held for resale are for the primary purpose of developing low and moderate income housing and are recorded at the useful lives of the related capital assets. lower of cost or estimated net realizable value. At June 30, 2018, land held Major outlays for capital assets and improvements are capitalized as the for resale with an original cost of $10,454 was recorded net of the allowance projects are constructed. Interest incurred during the construction phase of for decline in value of $4,422 and totaled $6,032, with this amount offset by projects is reflected in the capitalized value of the asset constructed for a restriction of fund balance for low and moderate income housing in the Housing Authority major governmental fund financial statement. proprietary funds. For the year ended June 30, 2018, business-type activities capitalized net interest costs of $7,745 net of $105 in interest The Long Range Property Management Plan nonmajor Special Revenue income due to the 2014-A Lease Revenue Bonds was issued to finance the Fund records parcels of land held for resale transferred from the Successor specific convention center expansions, in the government-wide and fund Agency to the former Anaheim Redevelopment Agency on January 1, 2016 financial statements. Total interest expense incurred by the business-type under the authorization of the approved Long Range Property Management activities (and the enterprise funds on the proprietary funds statements) Plan of the State of California Health and Safety Code Section 34191.5. The parcels are approved for future developments. The City has recorded the before capitalization was $44,833. land held for resale equal to the net realizable value bf these assets as Capital assets are depreciated using the straight-line method over the recorded in the Successor Agency's financial records in the amount of following estimated useful lives: $22,982 with a corresponding restriction in fund balance for future economic development. Buildings, structures and improvements 5 to 85 years Utility plant 5 to 75 years Restricted assets 2 to 40 years Machinery and equipment Certain proceeds of the City's bonds, as well as certain resources set aside Infrastructure 25 to 75 years for their repayment, are classified as restricted on the Statement of Net The net book value of capital assets retired or disposed of, related salvage Position or Balance Sheet, because they are maintained in separate bank value proceeds and the costs of removal are recorded in accumulated accounts and their use is limited by applicable debt covenants. Additionally, resources set aside by the Electric Utility for the future decommissioning of depreciation in the Electric Utility and Water Utility Funds. In all other cases, these amounts are recorded as gains or losses on disposal of capital its former ownership share of the San Onofre Nuclear Generating Station, Units 2 and 3 (SONGS) and the San Juan (SJ) Generating Station, Unit 4, assets. are classified as restricted on both the government-wide Statement of Net Capital assets transferred between funds are transferred at their net book Position and proprietary funds Statement of Net Position. value (cost less accumulated depreciation), as of the date of the transfer. Capital assets Debt issuance costs Under GASB Statement No. 34, all capital assets, whether owned by Debt issuance costs, with the exception of prepaid insurance costs, are governmental activities or business-type activities are recorded and recognized as outflow of resources (expense/expenditure) in the period depreciated in the government-wide financial statements. No long-term when the debt is issued. Prepaid insurance costs are capitalized and capital assets or depreciation are shown in the governmental funds financial amortized over the lives of the related debt issues on a basis that statements. approximates the effective-interest method. Capital assets, including public domain infrastructure (e.g., roads, bridges, Bond refunding costs sidewalks and other assets that are immovable and of value only to the Bond refunding costs are deferred and amortized over the life of the new City), are defined as assets with an initial, individual cost of more than $5 bond or over the life of the old bond, whichever is shorter, on a basis that ($50 for infrastructure) and an estimated useful life of greater than one year. 51
CITY OF ANAHEIM approximates the effective-interest method. These costs are shown as a Deferred inflows of resources deferred outflow of resources on the Statement of Net Position. In addition to liabilities, the statement of financial position reports a separate Accretion section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents acquisitions of fund Accretion is an adjustment of the difference between the prices of a bond or certificates of participation (COP) issued at an original discount and the par balance or net position that applies to a future period(s) and so will not be value of the bond or COP. The accreted value is recognized as it accrues by recognized as an inflow of resources (revenue) until that time. The City fiscal year. reported the following in these categories: Deferred outflows of resources 1. Unavailable resources - (which include revenues, notes and long-term receivables) measured under the modified accrual basis of In addition to assets, the statement of net position will sometimes report a accounting reported in governmental funds. These amounts are separate section for deferred outflows of resources. This separate financial deferred and will be recognized as an inflow of resources in the statement element, deferred outflows of resources, represents consumption period that the amounts become available. of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In Nonmajor the government-wide statement of net position, the City reported two items General Housing Governmental in this category: Fund Authority Funds Total
- 1. Deferred charges on refunding bonds - A deferred charge on Governmental Funds:
refunding bonds results from the difference in the carrying value of Grants $ 867 $ 148 $ 14,022 $ 15,037 debt and its reacquisition price. This amount is deferred and Other revenues 122 33 155 amortized over the shorter of the life of the refunded or refunding 47,017 24,031 71,048 Long-term notes receivable debt. The City reported $1,508 in governmental activities and
$19,215 in business-type activities in this category. Due from successor agency 10,538 10,538 Total $ 989 $ 47,165 $ 48,624 $ 96,778
- 2. Deferred outflows of OPEB related items - these balances represent current fiscal year contribution to the OPEB Trust that will be applied 2. Regulatory credits - accumulated from collections of the Electric and as a reduction in net OPEB liability in the next fiscal year; or other items arising from changes in actuarial assumptions, difference Water Utility customers reported in business-type activities. These between actual and projected experience, difference between actual amounts provide recovery in current period for costs to be incurred and projected investment gains/losses or changes in a fund's in future periods (refer to the discussion of Regulatory Credits proportionate share of the net OPEB liability; the amount will be below).
amortized and reported as a component in OPEB expense in future fiscal years (refer to discussion of OPEB Plan). The City reported Business-type activities
$15,050 in governmental activities and $5,119 in business-type activities in this category. Enterprise Funds:
Electric Utility $ 101,584
- 3. Deferred outflows of resources of pension related items - these Water Utility 2,189 balances represent current fiscal year contribution to the pension $ 103,773 Total plans that will be applied as a reduction in net pension liability in the next fiscal year; or other items arising from changes in actuarial 3. Deferred inflow related to refunding bonds includes gains from debt assumptions, difference between actual and projected experience, refunding. The City reports $638 in business-type activities in this difference between actual and projected investment gains/losses or category.
changes in a fund's proportionate share of the net pension liability; the amount will be amortized and reported as a component in 4. Deferred inflows of resources related to OPEB presents changes in pension expense in future fiscal years (refer to discussion of total OPEB liability arising from changes in actuarial assumptions; Pension Plans). The City reported $163,629 in governmental difference between actual and projected plan experiences; activities and $44,337 in business-type activities in this category. difference between actual and projected investment gains/losses or changes of the Fund's proportionate share of the net OPEB liability. Refer to discussion of the OPEB Plan in note 11 of the notes to the financial statements on pages 84-86 of this report. The City reported 52
CITY OF ANAHEIM
$10,245 in governmental activities and $3,593 in business-type The Water Utility's rates, rules and regulations provide for a water activities in this category. regulatory credit account to reflect variations in the cost of water to the Water Utility and provide more stable retail water rates to the customers of
- 5. Deferred inflows of resources related to pension are certain changes in total pension liability and fiduciary net position that are to be the City's Water Utility. This rate stabilization account (RSA) provides recognized as an increase in pension expenses in future fiscal increased flexibility by allowing the Water Utility to maintain financial years. T_hese 1:1re the balances arise from changes in actuarial performance indicators and goals specified in bond covenants. The a~sumpt1ons; difference between ~ctual and projected experience; account is funded through expense reimbursements such as water supply difference between actual and proJected investment gains/losses or cost refunds received from the Metropolitan Water District and Orange
~ha.~ges in the Fu_nd's proportionatE: share of the Plan's net pension County Water District and other miscellaneous credits and revenue. At June hab1hty. Refer to d1scuss1on of Pension Plans in note 10 of the notes 30, 2018 the deferred inflows of resources recorded for regulatory credits to the financial statements on pages 79-83 of this report. The City totaled $2,189 for the Water Utility. During fiscal year 2018, there was no reported $22,916 in governmental activities and $5,564 in business- RSA revenues recognized.
type activities in this category. Compensated absences Regulatory credits Compensated absences, vacation and sick pay, for all City employees are The Electric Utility's Rates, Rules, and Regulations provide for the Rate generally paid by the General Benefits and Insurance Fund, an internal Stabilization Account (RSA), which contains two components: the Power service fund. The General Benefits and Insurance Fund is reimbursed Cost Adjustment (PCA) that was adopted by City Council on April 1, 2001, through payroll charges to all other funds based on estimates of benefits to and the Environmental Mitigation Adjustment (EMA) that was adopted by be earned and used during the fiscal year. It is the policy of the City to pay the City Council on January 13, 2009. The PCA has mitigated variations in all accumulated vacation pay when an employee retires or terminates. the power supply or fuel costs. The EMA allows the recovery of Accumulated sick pay in excess of 175 hours per employee is paid to environmental mitigation costs, such as greenhouse gas emissions costs, employees at their then current rate of pay in January each year or upon the marginal cost differential between renewable power and traditional termination from the City. Employees are paid for all accumulated sick pay fossil-fuel-based power. The RSA provides the City with operational and when they retire from the City. Vested vacation and sick pay benefits are billing flexibility to mitigate material fluctuations in the cost of energy, loss of accrued when incurred in the General Benefits and Insurance Fund and at revenues, or unplanned costs including unexpected long-term loss of a June 30, 2018, totaled $20,474 and is included in long-term liabilities in the generating facility, unplanned limits on the ability to transmit energy to the Statement of Net Position. Also included in long-term liabilities in the City, or major disasters. The RSA funded by PCA and EMA collections is Statement of Net Position at June 30, 2018, is compensatory time liability of billed to customers through standard rates.
$616.
The Electric Utility restructured its rates effective September 1, 2015 in Changes in the City's compensated absences liability in fiscal year 2018 order to more effectively align the recovery of the Electric Utility's costs with were as follows: the nature of the costs incurred. This was accomplished by reducing the Power Cost Adjustment (PCA) and the Environmental Mitigation Estimated compensated liability at beginning of year $ 20,941 Adjustment (EMA) with corresponding increases to base rates. The Estimated compensated absence benefits earned 24,539 restructuring was designed to be revenue neutral to the customer. As of Compensated absences used (24,390) June 30, 2018, the PCA rate was $0.0050 per kWh for domestic, general Compensated absences liability end of year $ 21,090 commercial, industrial and municipal customers and ($0.0002) for large commercial customers. The Electric Utility recorded deferred inflows of Provision for decommissioning costs resources for regulatory credits related to PCA totaled $24,448. Federal regulations require the Electric Utility to provide for the future As of June 30, 2018, the EMA rate was $0.0005 per kWh for residential, decommissioning costs of its former ownership share of San Onofre general commercial, industrial and municipal customers and $0.0055 per Nuclear Generating Station (SONGS). The Electric Utility has established a KWh for large commercial customers. The deferred inflows of resources provision for decommis.sioning costs of SONGS and restoration of the recorded for regulatory credits related to EMA totaled $77,136. During fiscal beachfront at San Onofre, California where it is located. A separate year 2018, there was no RSA revenues recognized. irrevocable trust account has been established for amounts funded and these amounts are classified as restricted assets in the accompanying 53
CITY OF ANAHEIM statement of net position. At June 30, 2018, the Electric Utility has recorded Postemployment benefits other than pension (OPEB) a provision for decommissioning costs for SONG totaled $104,912. Regular, full time employees meeting certain eligibility requirements are On June 7, 2013, the Southern California Edison (SCE) announced the provided the OPES benefits. The City is a participant in the California permanent retirement of the SONGS plant. The estimated completion of the Employer's Retiree Benefit Trust (CERBT). It is the City's policy to fund all decommissioning is expected to take approximately 30 to 40 years. The annual required actuarially determined contributions (ADC) determined by Electric Utility continues to fund the reserve until the end of the trust fund. an actuarial valuation. On September 23, 2014, the SCE submitted a decommissioning cost analysis study to Nuclear Regulatory Commission (NRC). According to this Payments of the ADC is allocated among all City Funds in proportion to the new study for the decommissioning costs of SONGS, the Electric Utility's Fund's full time payroll expenses in the General Fund, the Housing share of decommissioning costs is $87,131. The Electric Utility currently Authority major special revenue fund, all nonmajor capital project funds, all has $104,912 in an irrevocable trust for the decommissioning costs. During nonmajor special revenue funds and all proprietary funds. fiscal year 2018, the Electric Utility has drawn $6,866 from the trust for the For purposes of measuring the net OPES liability and deferred outflows/ disbursements of decommissioning related obligations. inflows of resources related to OPES, and OPES expense, information The Electric Utility is providing for the future demolition and reclamation about the fiduciary net position of the City's OPES Plan and additions to/ costs allocation based on its former ownership share of SJ of 10.04%. As of deductions from the Plans' fiduciary net position have been determined on June 30, 2018, the Electric Utility has recorded a provision for the same basis as they are reported by CERBT. For this purpose, benefit decommissioning costs for SJ of $11,611 of which $6,233 was in payments are recognized when due and payable in accordance with the irrevocable trust and $5,378 in the City's restricted cash account. For the benefit terms. Investments are reported at fair value. See note 11 for further year ended June 30, 2018, the Electric Utility has drawn $109 from the trust discussion. for the decommissioning costs, and accrued future decommissioning costs for SJ of $6,000 in fuel and generation of power oHhe operating expenses. On October 1, 2005, the City and the International Brotherhood of Electrical Workers (IBEW), Local 47, entered into a Letter of Understanding related to Pension plan the Retiree Medical Plan. Under the Plan, the IBEW would establish a union Full-time City employees are members of the State of California Public trust (Trust) for the sole and exclusive purpose of providing post-retirement Employees' Retirement System (CalPERS). The City's policy is to fund all medical benefits to IBEW bargaining unit employees employed by City of annual required actuarially determined contribution (ADC); such costs to be Anaheim on October 1, 2005, and their eligible surviving spouses and funded are determined annually as of July 1 by the CalPERS's actuary. The dependents. The City agreed to transfer to the Trust for each employee in City maintains three Pension Plans with CalPERS - Miscellaneous Plan, the IBEW bargaining unit the one-time post-retirement medical reserve Police Safety Plan and Fire Safety Plan. See note 10 for further discussion. allocations, and the IBEW and City also agreed that the sum of four percent
*of base biweekly pay shall be contributed by the employees of the IBEW Payments of the ADC are liquidated from the Funds where the employees' bargaining unit to the Retiree Medical Plan. It should be noted that the Trust payroll expenses are charged. The Police and Fire Safety Plans are does not constitute a City-sponsored OPES defined benefit plan and liquidated from the General Fund, and the Grant nonmajor special revenue furthermore, that the City's responsibility is limited to contributions funds. The Miscellaneous Plan is allocated among all City Funds that negotiated with the IBEW, as such, there is no related retiree-medical include the General Fund, the Housing Authority major special revenue liability included in the City's OPES plan.
fund, all nonmajor capital project funds, all nonmajor special revenue funds, and all proprietary funds, in proportion to the Fund's payroll expenses. Net position restricted by enabling legislation For purposes of measuring the net pension liability and deferred outflows/ The government-wide Statement of Net Position reports $266,983 of inflows of resources related to pensions, and pension expense, information governmental activities restricted net position, of which $60,419 is restricted about the fiduciary net position of the City's California Public Employee's by enabling legislation. Retirement System (CalPERS) plans (Plans) and additions to/deductions Fund balances from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments In the fund financial statements, governmental funds report the following (including refunds of employee contributions) are recognized when due and classifications: payable in accordance with the benefit terms. Investments are reported at
- Nonspendable fund balance includes amounts that cannot be spent fair value. 54
CITY OF ANAHEIM because they are either (a) not in spendable form or (b) legally or The accumulated deficit fund balances at June 30, 2018 of $27 in the contractually required to be maintained intact. The "not in spendable Workforce Development nonmajor special revenue Fund, $3,655 in the form" criterion includes items that are not expected to be converted Streets Construction and $97 in the Transportation Improvement Projects to cash, for example, inventories, prepaid or long term loans and nonmajor Capital Project Funds, will be eliminated in future years by the notes receivable. receipt of reimbursements for grant expenditures.
- Restricted fund balance includes amounts when constraints placed Budgetary principles on the use of the resources are either imposed by external resource The City is .required by its charter to adopt an annual budget on or before providers, constitutional provisions or enabling legislation. June 30 for the ensuing fiscal year. The General, special revenue, debt
- Committed fund balance includes amounts that can be used only for service, and capital projects governmental fund types and proprietary fund the specific purposes pursuant to constraints imposed by formal types have legally adopted budgets approved by City Council. The level of action of the City's highest level of the decision-making authority. budgetary control (that is, the level at which expenditures cannot legally The City Council is the highest level of decision-making authority exceed the appropriated amount) is established at the department level.
that can, by adoption of an ordinance prior to the end of the fiscal From the effective date of the budget, the amounts stated herein as year, commit fund balance. Once adopted, the limitation imposed by proposed expenditures/expenses become appropriations to the various City the ordinance remains in place until a similar action by the City departments. Throughout the fiscal year the budget was amended to add Council to remove or revise the limitation. supplemental appropriations. All amendments to the budget which change the total appropriation amount for any department require City Council
- Assigned fund balance includes amounts that the City intends to approval and all increases in appropriations in operating expenditures must use for specific purposes but do not meet the criteria to be classified be accompanied by an increase in revenue sources of a like amount to as restricted or committed. The City Council has by Resolution maintain a balanced budget. The City Manager has the authority to change authorized the City Manager or his designee to establish, modify or individual budget line items within a department as long as the total rescind an assigned fund balance. department's appropriation amount is not changed.
- Unassigned fund balance accounts for the residual balance of the The City utilizes an encumbrance system as a management control City's general fund and includes all spendable amounts not technique to assist in controlling expenditures. All appropriations lapse at contained in other classifications. In other governmental funds, the the end of the fiscal year,. except for capital projects which are carried unassigned classification reports a deficit balance resulting from forward until such time as the project is completed or terminated and for overspending for specific purposes for which amounts had been encumbered balances that are re-appropriated in the next fiscal year.
restricted, committed or assigned. Generally, the City would first apply restricted resources when expenditures incurred for which GASB Statement No. 34 allows that budgetary comparison statements for both restricted and unrestricted resources are available. Further, the General Fund and major special revenue funds be presented in the when the components of unrestricted fund balance can be used for basic financial statements rather than as Required Supplementary the same purpose, committed fund balance is applied first, followed Information. These statements must display original budget, amended by assigned fund balance. Unassigned fund balance is applied last. budget and actual results. Generally, the City would first apply restricted resources when expenditures Budgeted revenue amounts represent the original budget modified by City incurred for which both restricted and unrestricted resources are available. Council authorized adjustments during the year, which were contingent Further, when the components of unrestricted fund balance can be used for upon new or additional revenue sources. Budgeted expenditure amounts the same purpose, committed fund balance is applied first, followed by represent original appropriations adjusted for supplemental appropriations assigned fund balance. Unassigned fund balance is applied last. during the year. Budgets are generally prepared in conformity with GAAP using the modified accrual basis of accounting, with the exception of capital In all governmental funds, encumbered amounts have been restricted or leases, or other similar instruments, and land held for resale, which are assigned for specific purposes for which resources have already been budgeted on a cash basis. allocated. At June 30, 2018, encumbrances totaled $548, $3, and $17,094 in the General Fund, Housing Authority Special Revenue Fund, and other nonmajor governmental funds, respectively. 55
CITY OF ANAHEIM Property taxes Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pension Plans. The requirements Property taxes attach as an enforceable lien on property as of January 1. of this statement are effective for fiscal years beginning after June Taxes are levied on July 1 and are payable in two installments due on 15,2017. November 1 and February .1 and become delinquent after December 10 and April 10. The County of Orange, California (County) bills and collects Statement No. 81, Irrevocable Split-Interest Agreement. The requirements of this Statement are effective for fiscal year beginning the property taxes and remits them to the City in installments during the after December 15, 2016. year. City property tax revenues are recognized when levied in the governmental funds to the extent that they result in current receivables Statement No. 85, "Omnibus 2017." The requirements of this collectible within 60 days after year-end. See note 8 for discussion of statement will take effect for financial statements starting with the pledged property tax revenues. fiscal year ends June 30, 2018. The County is permitted by State law (Proposition 13) to levy taxes at 1% of Statement No. 86, Certain Debt Extinguishment Issues. The requirements of this Statement are effective for reporting periods full market value (at time of purchase) and can increase the property tax beginning after June 15, 2017. rate no 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 Implementations of GASB Statement No. 81, 85 and 86 have no material it received in the 1976 and 1978 periods. effect on amounts reported in the City's financial statements. The requirement of GASB Statement No. 75 caused the City to restate prior year Entitlements, shared revenues and grants net positions in the governmental-activities and business-type activities by Entitlements and shared revenues are recorded at the time of receipt or reducing the beginning net positions by the amount of net OPEB liability net earlier if the susceptible to accrual criteria are met. Expenditure-driven of deferred outflows of resources for OPEB contribution. grants are recognized in the fund financial statements as revenue when the The following table provides a reconciliation of net position at June 30, qualifying expenditures have been incurred, all eligibility requirements have 2017, as previously reported, to net position at June 30, 2017, as adjusted: been met, and reimbursement is received within the availability period. Revenue recognition for Electric Utility, Water Utility, and Sanitation Govern- Business-mental type Utility Funds Activities Activities Total Revenue, net of uncollectible, is recorded in the period in which services Net position at June 30, 2017, as previously reported $838,288 $1,120,632 $1,958,920 are provided. Most residential and smaller commercial customers are billed Reduction of net position from implementation of GASS 75: bimonthly and all other customers monthly. At June 30, 2018 unbilled but Governmental Funds (125,076) (125,076) earned service charges .recorded in accounts receivable for the Electric Internal Service Funds (21,556) (21,556) Utility, Water Utility, and Sanitation Utility Funds amounted to $26,320, Electric Utility (23,982) (23,982) $1,615, and $3,684, respectively. See note 8 for discussion of pledged Water Utility (8,947) (8,947) revenues. (5,999) (5,999) Sanitation Utility Use of estimates Golf Courses (416) (416) The preparation of financial statements in conformity with GAAP requires Convention, Sports & Entertainment Venues (8,131) -~(8_,1_31~) management to make estimates and assumptions that affect the reported Net position at June 30, 2017, as adjusted $691,656 $1,073,157 $1,764,813 amounts of certain assets and liabilities and disclosures of contingent The City is currently reviewing its accounting practices to determine the assets and liabilities at the date of the financial statements and the reported potential impacts on the financial statements for the following GASB amounts of revenues and expenditures/expenses during the reporting Statements: period. As such, actual results could differ from those estimates. Statement No. 83, Certain Asset Retirement Obligations. The NOTE 2 - NEW ACCOUNTING PRONOUCEMENTS requirements of this Statement are effective starting with the fiscal On July 1, 2017, the city adopted the following new accounting year that ends June 30, 2019. pronouncements issued by the GASB: Statement No. 84, Fiduciary Activities. The requirements of this Statement are effective starting with the fiscal year that ends June 56
CITY OF ANAHEIM 30, 2019. Deposits and investments are comprised of the following at June 30, 2018: Statement No. 87, Leases. The requirements of this Statement are Deposits $ 40,526 effective for reporting periods starting with the fiscal year that ends 1,132,099 June 30, 2021. Investments Total deposits and investments $ 1,172,625 NOTE 3-DEPOSITS AND INVESTMENTS: At June 30, 2018, deposits of $40,526 with a corresponding bank balance The City maintains a cash and investment pool, which includes the cash balances of all funds, and is invested by the City Treasurer to enhance of $43, 185 were maintained in various federally regulated financial interest earnings. The pooled interest earned, net of administrative fees, is institutions. The difference of $2,659 represents deposits in transit, reallocated to each fund based on their respective average daily cash outstanding checks, and other reconciling items. Deposits with bank balances. balances of $1,912 are insured by the Federal Depository Insurance Corporation. For deposits with bank balances totaling $41,272, California The City's pooled investment fund has been reviewed by Standard and state statutes require federally regulated financial institutions to secure a Poor's Corporation (S&P) and received a credit rating of AA+f/S1 in city's deposits by pledging collateral consisting of either government December 2017. securities with a value of 110% of a city's total deposits or by pledging first The City's investment policy further limits the permitted investments in trust deed mortgage notes having a value of 150% of a city's total deposits. Government Code Sections 53600 et al, 16429.1 and 53684 to the The collateral is required by regulation to be held by the counterparty's following: obligations of the United States government, federal agencies, agent in the name of the City. and government sponsored enterprises; medium-term corporate notes; certificates of deposit; bankers' acceptances; commercial paper; LAIF; Investments repurchase agreements; reverse repurchase agreements; superanationals; and money market mutual funds. The City Treasurer prepares an investment policy statement annually, which is presented to the Budget, Investment and Technology Commission for Deposits and investments are comprised of the following at June 30, 2018: review and the 'City Council for approval. The approved investment policy Statement is submitted to the California Debt and Investment Advisory Restricted Committee in accordance with Government Code. - Cash and Cash and Restricted Cash Equivalents Investments Cash Equivalents Investment~ Total The policy provides the basis for the management of a prudent, conservative investment program. Public funds are invested for the Governmental activities: General Fund $ 9,482 $ 31,390 $ 40,872 maximum security of principal and to meet daily cash flow needs while Housing Authority 17,466 61,241 $ 963 79,670 providing a return. All investments are made in accordance with the Non major governmental funds 23,935 84,287 43,826 $ 153,838 305,886 Government Code and, in general, the City Treasurer's policy is more Internal service funds 20,245 71,303 1,430 92,978 restrictive than Government Code. 71,128 248,221 46,219 153,838 519,406 Total governmental activities Investments authorized by the Government Code and the City's Business-type activities: investment policy Electric Utility 19,964 70,309 171,775 126,199 388,247 Water Utility 8,236 29,005 4,535 38,093 79,869 The following table identifies the investment types that are authorized for Sanitation Utility 10,478 36,904 4,410 20,381 72,173 the City by its investment policy which is more restrictive than Government Golf Courses 1 Code. The table also identifies certain provisions of the City's investment Convention, Sports & policy that address interest rate risk, credit risk, and concentration of credit Entertainment Venues 10,317 36,060 19,878 7,373 73,628 risk. This table does not address investments of debt proceeds held by ARTIC Management 115 115 bond trustees that are governed by the provisions of debt agreements of the Total business-type activities 49,111 172,278 200,598 192,046 614,033 City, rather than the general provisions of the Government Code or the 420,499 246,817 345,884 1,133,439 Government-wide totals 120,239 City's investment policy. 33,251 5,935 39,186 Fiduciary funds Total cash and investments $ 120,239 $ 420,499 $ 280,068 $ 351,819 $ 1,172,625 57
CITY OF ANAHEIM Maximum Maximum Fair Percentage Investment in (S&P/Moody's / Issuer Investment Type Value % Maximum Authorized Investment T)l[le Maturity of Portfolio* One Issuer Fitch) Treasury securities $141,976 27% U.S. treasury Morgan Stanley Flexible repurchase agreement 115,608 22% U.S. treasury obligations 5 Years 100% 30% None Federated Money market mutual fund 80,005 15% U.S. agency securities 5 Years 100% 40% None U.S. Bank Money market mutual fund 42,800 8% Banker's acceptances 180 days 40% 5% None 31,967 6% Federal Home Loan Bank U.S. agency securities Commercial paper 270 days 25% 5% A-1 ;P-1 ;F-1 Negotiable certificates of deposit 365 days 25% 5% None All guaranteed investment contracts have downgrade language that Repurchase agreements 1 Year 30% None None requires collateral should credit ratings drop below certain levels. Reverse repurchase agreements 90 days 20% None None Medium-term corporate notes 5 Years 30% 5% A Custodial credit risk Money market mutual funds N/A 20% 10% AAA Custodial credit risk for investments is the risk that the City will not be able LAIF N/A $50 million $50 million None to recover the value of investment securities that are in the possession of an per account per account outside party. All securities owned by the City with the exception of LAIF Time Certificate of Deposit (TCD) 1 year 20% 5% None and money market mutual funds are deposited in trust for safekeeping with Supranationals 5 Years 20% 10% AAA a custodial bank different from the City's primary bank. Securities are not
- Excluding amounts held by bond trustees that are not subject to Government Code restrictions held in broker accounts. Funds held by LAIF and money market mutual funds are held in the City's name.
The City's pooled investments comply with the requirements of the Custodial credit risk for investments held by bond trustees is the risk that investment policy. GAAP requires disclosure of certain investments in any the City will not be able to recover the value of investment securities that one issuer that exceeds five percent concentration of the total investments. are in the possession of an outside party. All securities held by bond At June 30, 2018, the following investments represent five percent or more trustees are in the name of the bond issue in trust for safekeeping with the of the City's total pooled investments: bond trustee, which is different from the City's primary bank. Fair Interest rate risk Investment Type Value % Interest rate risk is the risk that changes in interest rates will adversely U.S. treasury Treasury securities $127,077 21% affect the fair value of an investment. The City Treasurer mitigates this risk Federal Home Loan Mortgage Corporation U.S. agency securities 58,794 10% by investing in longer-term securities only with funds that are not needed for Federal National Mortgage Association U.S. agency securities 54,253 9% current cash flow purposes and holding these securities to maturity. The LAIF LAIF 33,515 6% City Treasurer uses the segmented time distribution method to identify and manage interest rate risk. In accordance with the City investment policy, the Investments authorized by debt agreements City Treasurer monitors the segmented time distribution of its investment Investment of debt proceeds held by bond trustees is governed by portfolio and analysis of cash flow demand. provisions of the debt agreements, rather than the general provisions of the Investments held by bond trustees are typically long-term securities which Government Code or the City's investment policy. The table below identifies are not adversely affected by interest rate changes. Guaranteed investment the investment types that are authorized for investments held by bond contracts for construction funds are usually limited to three years or less. trustees. The table also identifies certain provisions of these debt Information about the sensitivity of the fair values of the City's investments agreements that address interest rate risk, credit risk, and concentration of (including investments held by bond trustees) to market interest rate credit risk. fluctuations is provided by the following table that shows the distribution of At June 30, 2018, the following investments represent five percent or more the City's investments by maturity at June 30, 2018: of the City's total investments controlled by bond trustees: 58
CITY OF ANAHEIM Credit Rating Fair Value 12 months or 13 to 24 25 to 36 37 to 60 More than investments (S&P/Moody's) 6/30/2018 less Months Months Months 60 Months Investments controlled by City Treasurer: U.S. agency securities
- AA+/Aaa $ 141,653 $ 44,854 $ 38,473 $ 9,733 $ 48,593 U.S. treasury obligations AA+/Aaa 127,077 39,938 29,220 57,919 Medium term corporate notes A,A1 9,923 4,998 4,925 A,A2 14,696 9,820 4,876 Medium term corporate notes A+,A1 16,659 4,919 6,848 4,892 Medium term corporate notes Medium term corporate notes A+,A2 16,012 5,198 10,814 Medium term corporate notes A+,Aa3 4,924 4,924 Medium term corporate notes AA,A1 4,984 4,984 AA, Aa2 4,893 4,893 Medium term corporate notes Medium term corporate notes AA-,A1 24,583
- 14,898 4,912 4,773 Medium term corporate notes AA-,Aa3 4,914 4,914 Medium term corporate notes AA+,Aa1 6,882 6,882 AAA,Aaa 18,734 4,982 4,921 3,937 4,894 Medium term corporate notes Commercial paper A~1.P-1 61,808 61,808 Commercial paper A-1+,P-1 40,898 40,898 Negotiable certificate of deposit A-1,P-1 9,979 9,979 Money market mutual funds AAA 62,861 62,861 LAIF Unrated 33,515 33,515 Total investments controlled by City Treasurer 604,995 314,015 94,676 65,464 130,840 Investment controlled by bond trustees:
U.S. agency securities AA+/Aaa 25,206 24,960 246 U.S. agency securities A+1+,P1 31,718 31,718 AA+/Aaa 13,018 11,074 734 731 479 U.S. treasury obligations U.S. treasury obligations A+1+,P1 128,958 128,958 Unrated 16,832 7,305 8,353 $ 1,174 Guaranteed investment contracts Unrated 129,558 129,558 Flexible repurchase agreements Money market mutual funds AAA/Aaa 139,014 139,014 Money market mutual funds A-1+ 30,844 30,844 LAIF Unrated 11,956 11,956 527,104 378,524 8,285 9,084 479 130,732 Total investments controlled by bond trustees
$1,132,099 $ 692,539 $ 102,961 $ 74,548 $ 131,319 $ 130,732 Total Investments Fair Value Measurement: the assumptions used, including discount rates and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an The City categorizes its fair value measurements within the fair value immediate settlement of the instrument.
hierarchy established by generally accepted accounting principles. The fair value of a financial instrument is the price that would be received to sell an The City groups its assets and liabilities measured at fair value in three asset or paid to transfer a liability in an orderly transaction between market levels, based on the markets in which the assets and liabilities are traded participants at the measurement date. Fair value is best determined based and the reliability of the assumptions used to determine fair value. The three upon quoted market prices. levels of the fair value hierarchy are as follows: However, in certain instances, there are no quoted market prices for the Level 1 of the fair value hierarchy are valued using prices quoted in City's various financial instruments. In cases where quoted market prices active markets for those securities for identical assets or liabilities are not available, fair values are based on estimates using present value or that the City has the ability to access at the measurement date. other valuation techniques. Those techniques are significantly affected by Level 2 of the fair value hierarchy are valued using a matrix pricing 59
CITY OF ANAHEIM technique utilizing market data including, but not limited to Less benchmark yields, reported trades, and broker-dealer quotes. Matrix Accounts Allowance for pricing is the process of estimating the market price of a bond based Receivable Uncollectibles Total on the quoted prices of more frequently traded comparable bonds Governmental activities: Level 3: inputs are unobservable inputs for the asset or liability. This General Fund $ 21,458 $ (3,828) $ 17,630 valuation is accomplished using management's best estimate of fair Housing Authority 136 (121) 15 value, with inputs into the determination of fair value that require Nonmajor governmental funds 1,703 (1) 1,702 significant management judgment or estimation. The level in the fair Internal service funds 4,522 4,522 value hierarchy within which a fair measurement in its entirety falls is Total governmental activities 27,819 (3,950) 23,869 based on the lowest level input that is significant to the fair value Business-type activities: measurement in its entirety. Electric Utility 49,155 (1,103) 48,052 Water Utility 6,316 (207) 6,109 The City has the following recurring measurements as of June 30, 2018: 8,202 (164) 8,038 Sanitation Utility Fair Value Measurement Using Golf Courses 171 171 Quoted Convention, Sports & Prices in Entertainment Venues 4,488 (68) 4,420 Active Significant Not 581 581 Markets for other Required ARTIC Management Identical Observable to be Total business-type activities 68,913 (1,542) 67,371 Assets Inputs leveled Total accounts receivable $ 96,732 $ (5,492) $ 91,240 Investment by fair value level 6/30/2018 (Level 1) (Level 2) Due from other governments Debt securities: U.S. agency securities $ 198,577 $ 31,718 $ 166,859 Due from other governments for the City's governmental activities at June U.S. treasury obligations 269,053 269,053 30, 2018, are as follows: Commercial paper 102,706 102,706 Negotiable certificate of deposit 9,979 9,979 Taxes Grants Other Total Medium term corporate notes 127,204 127,204 Governmental activities: LAIF 45,471 $45,471 General Fund $15,550 $ 78 $1,355 $16,983 Total investment measured at fair value 752,990 $ 300,771 $ 406,748 $45,471 Housing Authority 167 167 Investments measured at cost-based: Nonmajor governmental funds 21,423 11 21,434 Guaranteed investment contracts 16,832 Flexible repurchase agreements 129,558 Total due from other governments $ 15,550 $ 21,668 $ 1,366 $ 38,584 Money Market Mutual Funds 232,719 379,109 Revenues are reported net of estimated uncollectible amounts. Total Total investment measured at cost-based estimated uncollectible amounts related to revenues of the current period Total pooled and bond trustee investments $1,132,099 are as follows: NOTE 4 - ACCOUNTS RECEIVABLE, DUE FROM OTHER General fund $ 1,196 GOVERNMENTS, DUE FROM THE SUCCESSOR AGENCY, INTERFUND Electric Utility 673 RECEIVABLE AND PAYABLE BALANCES, AND CERTAIN INTERFUND 27 TRANSACTIONS: . Water Utility Sanitation 177 Accounts receivable Convention, Sports and Entertainment Venues 12 Accounts receivable for the City's governmental and business-type Total $ 2,085 activities, including the applicable allowance for uncollectible accounts at June 30, 2018, are as follows: 60
CITY OF ANAHEIM Due from the Successor Agency All interfund balances at June 30, 2018 are generally short-term loans to relieve temporary cash deficits in various funds, except the following At June 30, 2018, the amount due from the Successor Agency is $10,538. interfund balances that are expected to be repaid in more than one year: Due to the extended period of time over which the receivables are to be collected, the City has recorded expenditures at the time the loans were Electric Utility provided and deferred inflows of resources equal to the amount due in the nonmajor special revenues funds ($5,570) and the nonmajor capital project
- In 2015, the Public Utility Customer Service Information System fund ($4,968). Project was completed and placed in service. The Electric Utility paid for the total cost of the project. The Water Utility portion of the
- On April 1, 2003 the City and the former Anaheim Redevelopment total cost is $3,484, payable in annual amounts of not less than $344 Agency entered into a Cooperation Agreement whereby the City assisted the Redevelopment Agency with the development of beginning July 2016 until July 2024. The outstanding balance at Westgate utilizing $10,000 of funds from the HUD Section 108 loan June 30, 2018 is $2,408.
program. The amount is due to the City by annual installment
- In October 2016, the Public Utility and the Community Services through June 2024. At June 30, 2018, the amount due is $4,968. Department entered into a Memorandum of Understanding (MOU)
- On June 1, 2010, the City and the former Anaheim Redevelopment whereby the Public Utility agreed to provide low-interest financial Agency entered into a Cooperation Agreement whereby the City assistance of $309 to fund the costs of the security light and photo assisted the Redevelopment Agency with the rehabilitation of the cell replacement resource efficiency upgrading projects in Maxwell historic Packing House site utilizing $7,000 of funds from the HUD Park, Twilla Reid Park and Brookhurst Park. The fund will be repaid Section 108 $15,000 loan proceeds. The amount is due to the City over five years at an interest rate of 0.65% per annum. Monthly by annual installment through June 2031. At June 30, 2018, the principal and interest payment is $5 payable from unrestricted amount due is $4,686. general fund resources. At June 30, 2018, the balance is $299.
- On February 5, 2013, the City and the Successor Agency entered into a Cooperation Agreement whereby the City assisted the
- In November 2016, the Public Utility and the Public Works Successor Agency with loaning the proceeds of one-time allocation Department entered into a Memorandum of Understanding (MOU) of the $1,563 from the low and moderate income housing fund for whereby the Public Utility agreed to provide low-interest financial various Successor Agency projects. At June 30, 2018, the amount assistance of $231 to fund the costs of the general office lighting and due to the City is $884. parking garage structure resource efficiency upgrading projects.
The fund will be repaid over five years at an interest rate of 0.65% lnterfund receivable and payable balances per annum. Monthly principal and interest payment is $4 payable Net internal balances between governmental activities and business-type from unrestricted resources of the Municipal Facility Maintenance activities of $14,955 are included in the government-wide financial internal service fund. At June 30, 2018, the balance is $224. statements at June 30, 2018. Housing Authority lnterfund receivables and payables that are included in the fund financial statements at June 30, 2018, are as follows: In February 2018, the City and the Anaheim Housing Authority entered lnterfund Receivable: into a Cooperation Agreement whereby the City and Housing Authority exchanged real property for the purpose of developing affordable Nonmajor Internal housing. The market value of the Housing Authority property exceeded General Housing government service Electric
~ Authority al funds funds Utility Total that of the City property by $2, 150; hence, the City agreed to provide lnterfund Payable: $2,150 in future Park Fee Credits to the Housing Authority for the benefit Governmental Funds: of affordable housing development. At June 30, 2018, the park fee credit General Fund $ 62 $ 299 $ 361 due to the Housing Authority is $2,150 from the Community Services
$ 12,060 14,516 Nonmajor governmental funds $ 306 $ 2,150 Facilities nonmajor special revenue fund.
Enterprise Funds: Water Utility 2,408 2,408 Golf Courses 1,238 1,238 Internal Service Funds 189 224 413 Total $1,544 $2,150 $ 12,060 $ 251 $ 2,931 $18,936
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CITY OF ANAHEIM Certain interfund transactions The following interfund transfers are reflected in the fund financial statements at June 30, 2018: Transfers In: EnterQrise Funds Convention, Nonmajor Sports & General Housing governmental Electric Water Entertainment ARTIC Fund Authority funds Utility Utility Venues Management Total Transfers Out:
$ 67,026 $ 600 $ 16,571 $ 2,488 $ 86,685 General Fund
$ 244 $ 2,161 695 3,500 6,600 Nonmajor governmental funds 22,612 22,612 Electric Utility 1,044 $ 492 1,536 Water Utility 2,806 2,806 Sanitation Utility 925 925 Convention, Sports & Entertainment Venues Total $ 27,631 $ 2,161 $ 67,721 $ 492 $ 600 $ 16,571 $ 5,988 $ 121,164 The net transfers between governmental funds and proprietary funds is , Transfer of $600 from the General Fund to the Water Utility
$4,228 which are primarily comprised of operational subsidies from Enterprise Fund per the result of Measure N in the November 2014 election. enterprise funds to the General Fund and are offset by debt service subsidies to the ARTIC Management and Convention, Sports & , Transfer of $2,150 from the Community Services Facilities nonmajor Entertainment Venues Funds. capital project fund to Housing Authority major Special Revenue. This amount is the difference between marl<et value of the land The City made the following major transfers during fiscal year ended June exchanged. 30, 2018: , Transfer of $3,500 from the Gas Tax nonmajor Special Revenue
, Transfer of $60,181 represents Lease Payment Measurement Fund to the ARTIC Management Enterprise Fund for debt services Revenues (LPMR) from the General Fund to the Anaheim Resort on the ARTIC land acquisition loan as discussed on note 8 of the Improvements nonmajor Debt Service Funds which is held by the notes to the financial statements on pages 72-73 of this report.
Trustee, see discussion on note 8 of the notes to the financial , Transfers of $17,028 from the Electric Utility Enterprise Fund and statements on page 68 of this report. $2,806 from the Sanitation Utility Enterprise Fund to the General
- Transfer of $16,571 from the General Fund to* the Convention, Fund. As defined by City Charter, the transfer is equal to the Sports & Entertainment Venues Enterprise Fund for debt service maximum of 4% of total operating revenues of the current fiscal subsidy. year.
, Transfer of $2,488 from the General Fund to ARTIC Management , Transfer of $5,584 from the Electric Utility Enterprise Fund and Enterprise Fund for operational subsidy. $1,044 from the Water Utility Enterprise Fund to the General Fund.
The amount represents the City Council approved transfer of 1.5%
- Transfer of $1,652 from the General Fund to the Municipal Facilities retail electric revenue and net water revenue of the prior fiscal year.
nonmajor debt service fund for debt service. The net transfer of $4,114 from the business-type activities to governmental
*. Transfer of $2,663 from the General Fund to the Other CaJ'.)ital activities in the government-wide Statement of Activities consisted of the net Improvements nonmajor Capital Project Fund for Public Safety 800 transfers ($4,228) described above offsetting by a reclassification of $114 Megahertz (mHz) communication debt service ($803); park restroom from capital contribution to transfer in resulting from the sewer improvement renovation ~330); park development projects ($585), vehicle acquisitions $300), and various neighborhood capital improvement capital assets contributed from the governmental activities to the Sanitation proJects ($64 ). Utility business-type activities.
- Transfer of $2,264 from the General Fund to the Other Capital Except for the transfers detailed above, there were no other significant Improvements Fund, per Council Resolution, to set aside 25% of transfers during the fiscal year that were either non-routine in nature or annual surplus funds of the General Fund for community and neighborhood improvements. inconsistent with the activities of the Fund making the transfer.
62
CITY OF ANAHEIM NOTE 5: ECONOMIC ASSISTANCE AGREEMENTS - TAX contingent upon completion of cons_truction of th~ hotels, t~e ABATEMENTS (as defined by GASB Statement No. 77) commencement of and continued operations as a four-diamond quality hotel and the generation of and payment to the City of TOT. The As of June 30, 2018, the City Council approved two Economic Assistance cont~mplated hotels have yet to be built, and therefore cannot operate, Agreements (Agreements) to developers. These: Agree~e~ts relat~d to generate nor pay TOT, and as such no economic assistance is required by constructions of a Hotel and retail spaces (Projects) within the City of the City at this time. Once the hotels are constructed and operated at the Anaheim. There has been analysis of the feasibility gap between ~he costs required quality level, the City will use an amount equal to 7q% of the TO! of developing and operating the Project~ ~r:id the costs that the ~rojec~s can generated and paid to the City to fund the corresponding economic finance and viably support. T_he feas1b11lty_ gap for t~e Proje~ts 1s the assistance of the following projects: economic assistance that the City has committed to partially provide.
- In May 2013 the City entered into two economic assistance
- In July 2002, the City entered into a Development and Econo~ic agreements fo~ up to 866 hotel rooms, of a four-diamond quality, in Assistance Agreement (Agreement) with a ~eveloper. to provide two phases at the Garden-Walk. These agreements provide for City certain economic assistance to the developer in connection with the assistance in an amount equal to 70% of the TOT for the development of a seven story all-suites hotel (DoubleTre~ Hotel) _on development of a Convention Hotel (of not less than 466 rooms) and certain real property owned by developer and located in the City. a Resort Hotel (of not less than 350 rooms). The City's economic The feasibility gap of the economic assista_n_ce i~ capped at $12,908 assistance obligation ends on the earlier of twenty years from in total for a period over 15 years expmng 1!1 fiscal year 2021 completion of construction or, provision of assistance up to a not to payable semi-annually calculated from the Transient Occup~ncy Tax exceed amount of approximately $158 million. *
(TOT), ranging from 5% to 40% in accordance to the Adjustment table of the Agreement. During fiscal year 2018, the developer
- Further, in June 2015, the City established the Hotel Incentive received $762 in economic assistance. Program to bring other four-dia~ond quality hotels ~o Anaheim_. In accordance with the Hotel Incentive Program, the City entered into In April 2006, the City entered into a Disposition and Deve\opment three additional economic assistance agreements in July 2016 with Agreement with a developer to construe~ and operate reta1\ space similar terms for 580 rooms at 1700 South Harbor with an estimated (Garden-Walk) in Anaheim. Upon completion of the constr~ction, the economic assistance from the City in an amount of $145 million, 634 developer receives economic assistance equal to a portion of the sales tax that Garden-Walk generated for a period of 25 years rooms at 1030 West Katella Avenue with an estimated economic expiring at the earlier of 1) December 2038 or 2) max!mum amount assistance from the City in an amount of $148 million, and of $15,600 in total which increases 8% annually start10g on July \ approximately 700 rooms to the north of the Disne=:yland Hotel with 2013. During fiscal year 2018, the developer received $273 in an estimated economic assistance from the City in an amount of economic assistance. $267 million; thereby, creating the desired nu~ber of luxury ~ooms within the City. As such the program was rescinded for terminated In addition, the City entered into several economic assistance agre~ments for future developments in December 2016.
to provide assistance to partially fill the feasibility gap of t~e fou~-d1amon_d hotel developments within the City. Provision of economic assistance 1s The following is a summary of economic assistance agreements: Total Total Tax Base for % of Tax for Maximum Economic Total Maximum Calculation Calculation Economic Assistance Economic Economic Years of Economic of Economic Assistance Paid in Assistance Assistance Expiration Date Remaining Assistance Assistance Amount Fiscal Year 2018 Paid to Date Remaining Project 6/30/2021 4 TOT 5%-40% $ 12,908 $ 762 $ 10,229 $ 2,679 DoubleTree Hotel 12/31/2038 21 Sales 40%-50% 15,600 273 1,188 14,412 GardenWalk Retail 20 Years from Completion 20 TOT 70% 81,100 81,100 GardenWalk Hotel - 466+ Rooms 20 Years from Completion 20 TOT 70% 76,900 76,900 GardenWalk Resort Hotel - 350+ Rooms 20 Years from Completion 20 TOT 70% 145,000 145,000 1700 South Harbor - 580 Rooms 20 Years from Completion 20 TOT 70% 148,000 148,000 1030 West Katella Avenue - 634 Rooms 20 Years from Completion 20 TOT 70% 267,000 267,000 North of Disneyland Hotel - 700 Rooms*
- Refer to note 14 of the notes to the financial statement on page 92 of this report. 63
CITY OF ANAHEIM NOTE 6 - CAPITAL ASSETS: Capital asset activities for the year ended June 30, 2018, were as follows: Beginning Tranfer In Ending Balance Additions (Out) Deletions Balance Governmental activities: Nondepreciable assets: Land $ 646,359 $ 12,133 $ 408 $ (73) $ 658,827 Construction in proQress 59,098 37,016 (23,720) (1,381) 71,013 Total 705,457 49,149 (23,312) (1,454) 729,840 Depreciable assets: BuildinQs, structures and improvements 345,786 8,997 4,805 (451) 359,137 Machinery and equipment 132,631 7,353 6,526 (3,342) 143,168 In frastru ctu re 861,347 1,920 11,867 (174) 874,960 Total 1,339,764 18,270 23,198 (3,967) 1,377,265 Total assets 2,045,221 67,419 (114) {5,421) 2,107,105 Less accumulated depreciation for: Buildings, structures and improvements (153,530) (12,057) 346 (165,241) Machinery and equipment (93,616) (8,373) 3,308 (98,681) Infrastructure (423,045) (18,956) 172 (441,829) Total accumulated depreciation (670,191) (39,386) 3,826 (705,751) Total governmental activities capital assets, net $ 1,375,030 $ 28,033 $ (114) $ {1,595) $ 1,401,354 Business-type activities: Nondepreciable assets: Land $ 89,505 $ 89,505 Construction in progress 299,828 $ 134,946 $ (234,107) $ (64) 200,603 Total 389,333 134,946 (234,107) (64) 290,108 Depreciable assets: Buildings, structures and improvements 804,466 4,432 208,861 (613) 1,017,146 Utility plant 1,827,004 3,728 24,080 (94,548) 1,760,264 40,149 1,732 1,280 (10,081) 33,080 Machinery and equipment 2,671,619 9,892 234,221 (105,242) 2,810,490 Total 3,060,952 144,838 114 (105,306) 3,100,598 Total assets Less accumulated depreciation for: (279,203) (19,904) 511 (298,596) Buildings, structures and improvements (756,736) (60,129) 94,465 (722,400) Utility plant (27,411) (2,269) 9,908 (19,772) Machinery and equipment (1,063,350) (82,302) 104,884 (1,040,768) Total accumulated depreciation Total business-type activities capital assets, net $ 1,997,602 $ 62,536 $ 114 $ (422) $ 2,059,830 64
CITY OF ANAHEIM Depreciation expense was charged to functions/programs of the City during with lease expiration dates from 2054 to 2080. The total base rent to be fiscal year 2018 as follows: collected over the terms of the leases are $70,570 with simple interest accruing on unpaid portions at a rate ranging from 1% to 6%. Minimum Governmental activities: lease payments are calculated annually, based on residual receipts, as General government $ 106 defined in the lease agreements. At June 30, 2018, the Housing Authority Police 1,977 has recorded lease receivables due from developers related to these Fire & Rescue 892 transactions of $7,794, net of allowances of $10,240 for uncollected accounts in the government-wide financial statements. In the governmental Community & Economic Development 1,907 fund financial statements, this amount is included in the $47,017 notes Planning & Building 34 receivable balance of the Housing Authority. Public Works 19,797 Community Services 3,367 ARTIC Management Convention, Sports & Entertainment 5,279 The ARTIC has entered into numerous long-term operating leases with Capital assets held by the City's internal service funds are charged tenants granting them certain uses of the ARTIC premises described in the to the various functions based on their usage of the assets 6,027 respective lease agreements. Terms of the leases range from 5 years to 10 Total depreciation expense - governmental activities $ 39,386 years with lease expiration dates from 2020 to 2027. Extension options range from 5 years to 15 years. Certain leases are subject to percentage rent in an amount equal to a percentage of the amount by which tenant's Business-type activities: gross sales exceed certain thresholds. Electric Utility $ 48,972 11, 157 Future minimum lease payments are as follows: Water Utility Sanitation Utility 2,900 Fiscal Year Ending 6/30 Golf Courses 497 $ 593 2019 Convention, Sports & Entertainment Venues 16,469 2020 550 ARTIC Management 2,307 2021 448 Total depreciation expense - business-type activities 2022 437
$ 82,302 2023 446 2024-2027 1,122 Capital leases Total $ 3,596 Included in the capital assets amounts listed above are the following capitalized leased assets: ARTIC also entered into agreements to grant bus companies non-exclusive rights to use certain spaces in ARTIC. These agreements range from 5
- Governmental years to perpetuity. Some of the agreements can be terminated by either Activities party with a 60 days termination notice; some of them have extension Machinery and equipment $ 4,861 options, while others will automatically continue on a month-to-month basis (2,853) upon expiration.
Less accumulated amortization Capitalized leased assets, net $ 2,008 NOTE 7 - SELF INSURANCE: Operating leases The Insurance Fund (a function of the General Benefits and Insurance Fund), an internal service fund, is used to account for self-funded workers' Housing Authority compensation related benefits, self-funded general liability claims, At June 30, 2018, the Housing Authority earned revenues as the lessor of commercial insurance purchases, and alternative risk financing vehicles. land, carried at cost of $67,202 in the government-wide financial Revenues of the Insurance Fund are derived from cost-allocation charges statements, under ten operating ground leases. These leases to developers to City departments using estimates of anticipated risk-transfer costs, new are noncancelable. Terms of the leases range from 55 years to 65 years losses, payments on existing claims, and reserve development on known 65
CITY OF ANAHEIM claims. In addition, the Insurance Fund receives interest income from Above the retained limit of $1,000 per occurrence for liability losses, the City reserves. maintains excess coverage for all City operations to $150,000 per occurrence, excluding helicopter operations for which the City purchases At June 30, 2018, the City was funded at an actuarially acceptable level for $50,000, per occurrence, of commercial aviation liability insurance (on a self-funded retention for workers' co.mpensation and general liability claim first-dollar basis). The first layer of excess liability loss coverage is proc~r~d exposures (with retention levels of $2,000 per occurrence for w<?rk~~s* through the Authority for California Cities Excess Liability (ACCEL), a Joint compensation claims and $1,000 per occurrence for general hab11ity powers insurance authority, formed in 1986, pooling catastr?p~ic g~ne~~I, claims). Above these retained levels, the City's potential liability _is cove~ed automobile, personal injury, and public officials errors and o~rnss1on~ hab1hty through various commercial insurance and intergovernmental nsk pooling losses among twelve California cities, through both nsk~shanng and programs (collectively, "Insurance"). Settled claims have not excee?ed total commercial insurance joint-purchase arrangements. The City, therefore, Insurance in any of the past three years, nor does management believe that continues to maintain some limited excess liability risk sharing exposure, there are any pending claims that will exceed total Insurance coverage. above $1,000 per occurrence, directly with ACCEL. This pooled coverage The unpaid claims liability included in the Insurance Fund is based on the has exposure from the run-out periods from prior years in the ACCEL results of actuarial studies and includes amounts for claims incurred-but- retained layer of $4,000 in excess of $1,000. Each ACCEL member's share not-reported, known-claim development, and allocated loss adjustment of pooled losses is based on a retrospectively-rated risk-s~aring formula expenses. Claims liabilities are calculated using a discount rate of 2.00% which includes, but is not limited to, exposure and loss experience factors. and consider the effects of inflation, multi-year loss development trends, In order to provide funds to pay claims, ACCEL collects an annual deposit and other economic and social factors. It is the City's practice to obtain full from each member. The deposits are credited with investment income at the actuarial studies annually for its retained levels for general liability and rate earned on ACCEL's investments. At June 30, 2018, ACCEL's cash and workers' compensation exposures. "Premiums" are charged by the investments totaled $49,904, of which $2,487 consists of deposits and Insurance Fund using various allocation methods that include actual costs, interest on deposits provided by the City. The City has no specific equity trends in claims experience and various exposure bases. interest in ACCEL. Deposits provided to ACCEL by the City are expensed Changes in claims liability of the General Benefits and Insurance Fund and when paid by the General Benefits and Insurance Fund. that relates to the governmental funds and reported in the governmental ACCEL is responsible for deciding the risks it will underwrite, the activities in the government-wide Statement of Net Position in fiscal years monitoring, and handling of large claims, and arranging ex~ess risk-2018 and 2017 were as follows: financing programs. ACCEL does not have any debt outstanding .. For a copy of ACCEL's separate financial statements, contact the Finance 2018 2017 Director of the City. Claims liability at beginning of year $ 51,865 $ 50,616 Current year claims and changes in estimates 14,488 12,302 Claims payments (12,041) (11,053) Claims liability at end of year $ 54,312 $ 51,865 Above the retained limit of $2,000 per occurrence for workers' compensation losses, the City purchases excess coyerage, ~tilizing both commercial insurance and an intergovernmental nsk pooling program (CSAC-EIA), to statutory limits. 66
CITY OF ANAHEIM NOTE 8 - LONG-TERM LIABILITIES: The following is a summary of changes in long-term liabilities reported in the government-wide financial statements for the year ended June 30, 2018: Beginning Additions/ Reductions/ Ending Within One Balance Proceeds Refunded Payments Balance Year Governmental activities: 394,492 $ (12,168) $ 382,324 $ 12,550 City lease revenue bonds $ 233,265 $ 19,883 (13,673) 239,475 14,745 Accretion (168) 44 (124) Unamortized bond discount/premium, net 627,589 19,883 (25,797) 621,675 27,295 Total cawtalized lease obligations: 1,738 1,184 (1,372) 1,550 831 nternal Service Funds 1,738 1,184 (1,372) 1,550 831 Total Notes and loans payable: 2,945
- 24,885 2,250 (2,581) 24,554 City 4,692 (1,238) 3,454 1,269 Internal Service Funds 29,577 2,250 (3,819) 28,008 4,214 Total 51,865 14,488 (12,041) 54,312 11,670 Claims liabilities (note 7) 20,941 24,539 (24,390) 21,090 12,602 Compensated absences (note 1)
Other Postemployment Benefits (OPEB) (note11) 136,034 2,634 (10,959) 127,709 Governmental Funds 11,151 215 (898) 10,468 Internal Service Funds 147,16-s 2,849 (11,857) 138,177 Total Pension (note 10): 496,073 123,046 (47,151) 571,968 Governmental Funds (2,440) 31,202 22,421 11,221 Internal Service Funds 518,494 134,267 (49,591) 603,170 Total 1,397,389 199,460 (128,867) 1,467,982 56,612 Governmental activities total Business-type activities: Bonds payable: 705,225 237,745 $ (250,720) (21,305) 670,945 20,975 Electric Utility (3,370) 158,900 3,490 Water Utility 162,270 40,490 45,705 (39,395) (1,095) 45,705 1,080 Sanitation (4,844) 224,016 5,096 228,860 Convention, Sports & Entertainment Venues (28,845) 114,773 98,555 45,063 Unamortized bond discount/premium, net 1,235,400 328,513 (290,115) (59,459) 1,214,339 30,641 Total Notes and loans payable: 301 (29) 272 29 Electric Utility (19) 177 19 196 Sanitation Utility (3) 23 2 26 Convention, Sports and Entertainment Venues (3,500) 16,500 3,500 20,000 ARTIC Management (3,551) 16,972 3,550 20,523 Total Interest ga~able 2,635 363 2,998 ARTI anagement 2,998 2,635 363 Total (6,975) 116,523 116,477 7,021 Decommissioning provision (note 1) Other Postemployment Benefits (OPEB) (note11) 26,083 504 (2,101) 24,486 Electric Utility 9,731 189 (784) 9,136 Water Utility 6,525 127 (526) 6,126 Sanitation Utility 453 8 (36) 425 Golf Courses 8,843 171 (712) 8,302 Convention, Sports & Entertainment Venues 999 (4,159) 48,475 51,635 Total Pension (note 10): 77,861 20,859 (7,159) 91,561 Electric Utility 5,855 (2,300) 29,417 25,862 Water Utility 3,943 (1,304) 16,674 14,035 Sanitation Utility 293 (96) 1,232 1,035 Golf Courses 7,956 (2,791) 35,691 30,526 Convention, Sports & Entertainment Venues 38,906 (13,650) 174,575 149,319 Total (290,115) (87,794) 1,573,882 34,191 1,575,989 375,802 Business-type activities total (290,115) $ (216,661) $ 3,041,864 $ 90,803
$ 2,973,378 $ 575,262 $
Government-wide total 67
CITY OF ANAHEIM Bond ratings for the City's revenue bonds are as follows: debt service on the bonds. The Walt Disney Company provided a guarantee to the bond insurer to enable the issuer to obtain municipal bond insurance. Standard & Fitch Poor's Ratings Moody's LPMR began on January 1, 2001, with the first payment made to the trustee General Fund Lease Revenue Bonds AA- AA Aa3 on July 7, 2001, for the LPMR generated during the period January through 2007 Senior Lease Revenue Bonds BBB+ A+ A1 June 2001. Subsequent to that date, LPMR is collected and remitted to the AA- Aa3 trustee monthly. During the fiscal year ended June 30, 2018, $59,683 was Electric Revenue Bonds Unrated remitted to the trustee. Water Revenue Bonds AA+ AAA Unrated Sewer Revenue Bonds AA+ Unrated Unrated Debt service requirements to maturity for the 1997 Anaheim Lease Revenue Bonds and the 2007 Anaheim Lease Revenue Refunding Bonds GOVERNMENTAL ACTIVITIES: to be paid by the Anaheim Resort Improvements Debt Service Fund from future LPMR are as follows: BONDS PAYABLE At June 30, 2018, bonds payable consisted of the followings: Fiscal Year Ending 6/30 Principal Interest Total 2019 $ 12,031 $ 27,086 $ 39,117 Range of Authorized Out- 2020 12,616 27,781 40,397 Date Final Interest Rates and standing Issued Maturity at Issue Date Issued 6/30/2018 2021 13,279 28,464 41,743 2022 13,782 29,197 42,979 City 1997 Anaheim Lease 2023 14,378 29,854 44,232 Revenue Bonds 2/1/1997 3/1/2037 4.5%-6.0% $ 510,427 $134,161 2024-2028 80,633 160,653 241,286 Accretion 239,475 2029-2033 96,466 181,723 278,189 2007 Anaheim Lease 2034-2037 116,311 176,254 292,565 Revenue Refunding Bonds 6/13/2007 3/1/2037 3.25%-5.5% 256,320 225,335 359,496 661,012 1,020,508 Total 2008 Anaheim Lease Unamortized bond discount (1,624) (1,624) Revenue Refunding Bonds 12/10/2008 8/1/2019 3.0%-5.0% 5,084 1,074 Total bonds $ 357,872 $ 661,012 $ 1,018,884 2014 Anaheim Lease Revenue Bonds 11/14/2014 5/1/2046 0.4%-5.0% 27,954 21,754 Total 621,799 Included in interest is $239,475 related to accretion on capital appreciation Unamortized bond premium/discounts, net (124) bonds. Total governmental activities bonds $ 799,785 $621,675 Lease revenue bonds - City Bonds Payable - City Debt service requirements to maturity for the City's lease revenue bonds to be paid from unrestricted revenues of the Municipal Facilities Debt Service Lease gayment measurement revenues Fund are as follows: In February 1997, the Anaheim Public Financing Authority sold $510,427 of Fiscal Year Ending 6/30 Principal Interest Total lease revenue bonds to construct public improvements in The Anaheim 2019 $ 519 $ 1,129 $ 1,648 Resort. In June 2007, the Authority sold $256,320 of lease revenue bonds 2020 555 1,102 1,657 to defease $248,335 of the 1997 lease revenue bonds. The bonds are 2021 1,088 1,088 special obligations of the Authority payable solely from lease payments to 2022 40 1,088 1,128 be made by the City to the Authority for the use and occupancy of the 2023 488 1,086 1,574 leased premises. Debt service requirements to maturity for these lease 2024-2028 2,831 5,037 7,868 revenue bonds are paid from lease payment measurement revenues 2029-2033 3,613 4,255 7,868 (LPMR) defined as amounts equal to: 1) 3% of the 15% transient occupancy 2034-2038 4,611 3,257 7,868 taxes (TOT) (i.e. 20% of the total transient occupancy taxes) for all hotel 2039-2043 5,885 1,983 7,868 properties in the City, excluding Disney properties, and 2) 100% of the 4,286 435 4,721 2044-2046 incremental TOT, sales, and property tax revenues from all Disney 22,828 20,460 43,288 Total properties over the 1995 base, adjusted each year by the CPI change, with 1,500 1,500 a minimum 2% increase annually. The City is not required to pay any Unamortized bond premium additional sums should the LPMR fall short of the amount required to pay Total Bonds $ 24,328 $ 20,460 $ 44,788 68
CITY OF ANAHEIM CAPITAL LEASE OBLIGATIONS Justice Center and Miraloma Park site, construction of the Thornton Brady storm drain and the rehabilitation of the historic Packing House site. The The City has a long-term noncancelable agreement with HP Financial loan is payable from the Community Development Block Grant yearly Services to finance the acquisition of the City's server, desktop, and entitlement and from the receipts of the Successor Agency receivable. The portable computer equipment. The agreement qualifies as a capital lease outstanding balance of the loan at June 30, 2018, was $10,240. The loan for accounting purposes as defined under the Financial Accounting bears interest ranging from 1.74% to 3.97% and is payable over 20 years Standards Board (FASB) Statement No. 13, Accounting for Leases, and beginning on February 1, 2011 through August 1, 2030. Loan debt service therefore has been recorded at the present value of future minimum lease requirements to maturity are as follows: payments at the date of inception of the lease. Future minimum lease payments to be made from unrestricted revenues of the Information Fiscal Year Ending 6/30 Principal Interest Total Services Internal Service Fund under the capital lease are as follows: 2019 690 394 1,084 2020 710 372 1,082 Fiscal Year Ending 6/30 2021 730 348 1,078 2019 $ 868 2022 755 321 1,076 2020 517 2023 780 292 1,072 2021 213 4,335 959 5,294 2024 - 2028 2022 32 2029 - 2031 2,240 117 2,357 Total 1,630 Total notes and loans $10,240 $ 2,803 $ 13,043 Less amount representing interest, variable (80) Present value of future minimum lease payments $ 1,550 Helicopter loan payable NOTES AND LOANS PAYABLE In January 2009, the City entered into an agreement with Government Capital Corporation to finance the acquisition of a police helicopter. The At June 30, 2018, notes and loans payable are as follows: amount of the loan totaled $1,799 and bears interest at 5.391 % per annum Notes and Loans Payable - City for a term of 12 years. On January 29, 2009, Government Capital Corporation assigned this agreement to Bank of America which HUD Section 108 guaranteed loans ~ayable subsequently assigned it to Western Alliance Equipment Finance on March In May 2003, the City entered into an agreement with HUD, making 21, 2012. Principal and interest payments of $206 are due annually available $10,000 to provide financial assistance related to the development beginning on December 16, 2009, until December 16, 2020. The of Westgate on a former landfill site located at the northeast corner of outstanding balance at June 30, 2018 was $557. Loan debt service Beach Boulevard and Lincoln Avenue. The loan is payable from the receipts requirements to maturity are as follows: of the Successor Agency receivable. The outstanding balance at June 30, Fiscal Year Ending 6/30 Principal Interest Total 2018 was $4,968. The loan bears interest ranging from 1. 74% to 5.97% and 2019 $ 176 $ 30 $ 206 is payable over 20 years beginning on February 1, 2005, until August 1, 2020 186 20 206 2023. Loan debt service requirements to maturity are as follows: 2021 195 11 206 Total notes and loans $ 557 $ 61 $ 618 Fiscal Year Ending 6/30 Principal Interest Total 2019 $ 730 $ 266 $ 996 2020 785 223 1,008 Lincoln Avenue Construction loan payable 841 177 1,018 2021 In March 2013, the City entered into a cooperative agreement with the 907 127 1,034 2022 County of Orange (County) for the funding and construction of Lincoln 975 72 1,047 2023 Avenue. The project includes widening of Lincoln Avenue from Rio Vista 2024 730 22 752 Street to Riverbend Parkway, and construction of the Lincoln Avenue Total notes and loans $ 4,968 $ 887 $ 5,855 Bridge over the Santa Ana River. Construction costs of the Lincoln Avenue within the City boundary is estimated to be $2,250 which will be payable to In March 2010, the City entered into an agreement with HUD, making the County in seven installments starting on July 1, 2013 and on July 1 of available $15,000 to fund the acquisitions of the Orange County Family 69
CITY OF ANAHEIM each subsequent year at no interest cost. The outstanding balance at June outstanding balance at June 30, 2018 was $3,112. Loan debt service 30, 2018 was $500. requirements to maturity are as follows: 800 Megahertz Communication Equipment Fiscal Year Ending 6/30 Principal Interest Total On November 30, 2015, the City entered into a Master Equipment Lease/ 2019 $ 1,012 $ 77 $ 1,089 1,037 52 1,089 Purchase Agreement (Agreement) with Banc of America Public Capital 2020 1,089 Corp., to finance the acquisitions and replacement of the City portion of the 2021 1,063 26 800 Megahertz (MHz) Countywide Coordinated Communications System Total notes and loans $ 3,112 $ 155 $ 3,267 (CCCS). The CCCS project includes a plan for replacement of three main components: Backbone Equipment, Subscriber Equipment, and Dispatch Network Core Equipment loan payable Consoles. On January 10, 2017, the City entered into a lease purchase agreement On November 30, 2015, the Agreement provided $1,100 financing for with Delage Landen Public Finance, LLC to provide $723 financing for the acquisition of a portion of the mobile radio equipment payable over 1O years replacement of the Citywide Network Core system. The loan is payable over and bears interest of 1.98% per annum, Principal and interest payments of 3 years with an annual payment of $251. The outstanding balance of the $61 are due semi-annually beginning on May 30, 2016, until November 30, loan at June 30, 2018 was $246. Total debt service to maturity of the loan 2025. The outstanding balance at June 30, 2018 was $846. are as follows: On November 30, 2016, the Agreement provided $6,840 financing for Fiscal Year Ending 6/30 Principal Interest Total acquisition of the remaining radio equipment payable over 10 years and 2019 $ 246 $ 5 $ 251 bears interest of 1.87% per annum. Principal and interest of $377 are due Total notes and loans $ 246 $ 5 $ 251 semi-annually beginning on May 30, 2017, until November 30, 2026. Amount of this financing allocated to the governmental activities totaled Community Learning Center property acquisition loan payable $6,235. The outstanding balance at June 30, 2018 was $5,421. Loan debt service requirements to maturity are as follows: On September 1, 2017, the City entered into an Agreement with Los Altos V. LP (Seller) for the purchase and sale of the former Northgate Market site Fiscal Year Ending 6/30 Principal Interest Total located at 718-744 N. Anaheim Boulevard for the development of a 2019 $ 701 $ 114 $ 815 Community Learning Center. The purchase price of the property is $4,750 2020 714 101 815 of which $2,500 was paid in cash from resources of the Community 2021 727 88 815 Development Block Grant with the balance of $2,250 will be payable to 2022 740 75 815 Seller over five years at an annual interest rate of 5%. Principal and interest 2023 754 61 815 of $43 are due on the first of each month commencing on March 1, 2018 2024-2026 2,631 98 2,729 until February 1, 2023. The annual loan payment will be funded from the Total notes and loans $ 6,267 $ 537 $ 6,804 restricted resources of the Community Development Block Grant yearly entitlement. The outstanding balance of the loan at June 30, 2018 was ACCELA Enterprise permit tracking and land management software system $2, 118. Total debt service to maturity are as follows: loan payable On September 13, 2016, the City entered into a Technology Lease- Fiscal Year Ending ~/30 Principal Interest Total 2019 $ 409 $ 107 $ 516 Purchase Agreement with Government Capital Corporation to provide 2020 433 83 516 $5,190 financing for the procurement of the Accela, Inc. software, 2021 457 59 516 programming, maintenance, support, licenses and project implementation 2022 483 33 516 services for the replacement of the Citywide enterprise permit tracking and 2023 336 7 343 land management system. The loan bears interest at 2.48% per annum for 289 Total notes and Joans $ 2,118 $ $ 2,407 a term of 5 years. Principal and interest payments of $1,090 are due annually beginning on September 22, 2016, until September 22, 2020. The 70
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, to repay a total of $1,015,303 outstanding long-term obligations, Range of principal and interest. Proceeds from bonds provided financing for various Date Interest Rates Authorized Outstanding capital improvements, primarily distribution assets. The Electric Utility's Issued Maturity at Issue Date and Issued 6/30/2018 bonds are payable solely from electric customer net revenues and are Electric Utility 3.0%-5.25% 70,000 $ 1,540 payable through 2046. At June 30, 2018, the annual principal and interest 2009 Revenue Bonds 3/10/2009 10/1/2039 $ 10/1/2036 3.0%-5.375% 90,390 8,565 payments on the bonds, excluding early bond retirements, were 42.8% of 2011 Revenue Bonds 5/11/2011 10/1/2031 3.125%-5% 92,130 62,990 net revenues. Principal and interest paid for the current fiscal year and total 2012 Revenue Bonds 9/19/2012 10/1/2035 2.0%-5.0% 109,350 87,360 net revenues were $51,918 and $121,364 respectively. 2014 Revenue Bonds 10/8/2014 2015A Revenue 4/21/2015 10/1/2045 Variable a 50,000 50,000 Bond debt service requirements to maturity for the Electric Utility to be paid 2015B Revenue 7/21/2015 10/1/2035 3.0%-5.0% 92,865 85,110 from revenues are as follows: 2016A Revenue 10/19/2016 10/1/2041 3.0%-5.0% 219,285 126,985 20168 Revenue 10/19/2016 10/1/2028 0.80%-2.71 % 69,780 11,110 Fiscal Year Ending 6/30 Principal Interest Total 2017A Revenue 12/21/2017 10/1/2028 1.57%-2.21 % 42,955 42,955 194,330 2019 $ 20,975 $ 29,745 $ 50,720 2017B Revenue 12/21/2017 10/1/2036 1.14%-2.50% 194,790 Total 670,945 2020 25,005 28,738 53,743 Unamortized bond premiums/discounts, net 75,666 2021 26,170 28,324 54,494 Total Electric Utility 746,611 2022 28,920 27,748 56,668 Water Utility 2023 30,110 26,272 56,382 2008 Revenue Bonds 7/9/2008 10/1/2038 4.0%-5.0% 48,580 405 2024-2028 165,070 107,084 272,154 2010 Revenue Bonds 10/28/2010 10/1/2040 2.0%-4.75% 34,525 32,775 10/1/2045 2.0%-5.0% 95,885 91,915 2029-2033 182,410 65,533 247,943 2015 Revenue Bonds 4/21/2015 2016-A Revenue 10/19/2016 10/1/2046 2.0%-5.0% _35,225 33,805 2034-2038 139,790 23,947 163,737 Total 158,900 2039-2043 35,610 6,164 41,774 Unamortized bond premiums/discounts, net 15,444 17,688 2044-2046 16,885 803 Total Water Utility 174,344 Total 670,945 344,358 1,015,303 Sanitation Utility Unamortized bond 2007 Revenue Bonds 1/25/2018 2/1/2048 5% 45,705 45,705 8,767 premiums/discounts, net 75,666 75,666 Unamortized bond premium Total Sanitation 54,472 Total bonds $ 746,611 $ 344,358 $1,090,969 Convention, Sports and Entertainment Venues Bonds Payable - Water Utility 2008 Lease Revenue Refunding Bonds 12/10/2008 8/1/2019 3.0%-5.0% 45,847 10,390 The City's Water Utility has pledged future revenues from the sale of water, 2014 Lease Revenue net of certain costs, to repay a total of $275,244 for outstanding long-term Bonds 11/14/2014 5/1/2046 0.4%-5.0% 230,971 213,626 obligations, principal and interest. Proceeds from bonds provided financing Total 224,016 for various capital improvements, primarily distribution assets. The bonds Unamortized bond premiums/discounts, net 14,896 are payable solely from water net revenues and are payable through 2047 Total Convention, Sports and Entertainment Venues 238,912 At June 30, 2018, the annual principal and interest payments on the bonds Total business-type activities bonds $ 1,568,283 $ 1,214,339 were 51.9% of net revenues. Principal and interest paid for current fiscal year and total net revenues were $11,008 and $21,200 respectively. a The interest is calculated weekly based on SIFMA-Based index rate and a base SIFMA spread of 0.35%. On December 1, 2020, these bonds are subject to mandatory tender for purchase. Bond debt service requirements to maturity for the Water Utility to be paid from revenues are as follows: 71
CITY OF ANAHEIM Bonds Payable - Convention, Sports and Entertainment Venues Fiscal Year Ending 6/30 Principal Interest Total 2019 $ 3,490 $ 7,519 $ 11,009 Bond debt service requirements to maturity for the Convention, Sports and 3,640 7,369 11,009 Entertainment Venues to be paid from revenues are as follows: 2020 2021 3,810 7,199 11,009 Principal Interest Total Fiscal Year Ending 6/30 2022 3,985 7,025 11,010 2019 $ 5,096 $ 11,074 $ 16,170 2023 4,165 6,836 11,001 2020 6,355 10,814 17,169 2024-2028 23,855 30,949 54,804 2021 2,400 10,628 13,028 2029-2033 30,160 24,219 54,379 2022 3,890 10,508 14,398 2034-2038 37,305 16,547 53,852 2023 4,637 10,314 14,951 2039-2043 33,920 7,365 41,285 2024-2028 26,894 47,852 74,746 2044-2047 14,570 1,316 15,886 2029-2033 34,322 40,421 74,743 Total 158,900 116,344 275,244 2034-2038 43,804 30,939 74,743 2039-2043 55,910 18,836 74,746 Unamortized bond 15,444 2044-2046 40,708 4,137 44,845 premiums/discount, net 15,444 Total 224,016 195,523 419,539 Total bonds $ 174,344 $ 116,344 $ 290,688 Unamortized bond premium/discounts, net 14,896 14,896 Bonds Payable - Sanitation Utility Total bonds $ 238,912 $ 195,523 $ 434,435 The City's Sanitation Utility has pledged future sanitation system net revenues to pay a total of $78,892 for revenue bonds issued in January NOTES AND LOANS PAYABLE 2018. Proceeds from the bonds provided financing for capital improvements to the sanitation sewer collection system. The bonds are payable solely Note Payable - Electric Utility from system net revenues and are payable through February 2048. At June On March 1, 2013, the Public Utility Department entered into a Revolving 30, 2018, *total principal and interest payments on the bonds were less than Credit Agreement (Agreement) with Wells Fargo Bank, National Association 41.7% of net revenues. Total principal and interest paid and total system net for a note amount not to exceed $100,000, of which $86,000 is made revenues for the current fiscal year were $2,997 and $7,184 respectively. available for the Electric Utility and $14,000 for the Water Utility. The note Bond debt service requirements to maturity for the Sanitation Utility to be has a three year term at variable interest rate based pn the LIBOR Daily paid from revenues are as follows: Index Rate and a spread. The annual commitment fee *is 0.175% of the Fiscal Year Ending 6/30 Principal Interest Total total note amount of $100,000. 2019 $ 1,080 $ 2,323 $ 3,403 On January 1, 2016, upon expiration of the Agreement, the Public Utility 2020 1,170 2,231 3,401 Department and Wells Fargo Bank National Association entered into a new 2021 1,230 2,173 3,403 revolving credit Agreement for the same term with a maturity date of 2022 1,295 2,111 3,406 January 28, 2021. 2023 1,355 2,047 3,402 7,875 9,144 17,019 The Utility Department did not draw fund from the Revolving Credit during 2024-2028 10,060 6,969 17,029 fiscal year 2018. 2029-2033 2034-2038 12,825 4,190 17,015 Note Payable -ARTIC Management 2039-2043 5,250 1,447 6,697 Anaheim Regional Transportation lntermodal Center (ARTIC) Land 2044-2048 3,565 552 4,117 Acquisition Loan payable Total 45,705 33,187 78,892 Unamortized bond premium 8,767 8,767 In July 2012, the City entered into an agreement with the Orange County Total bonds $ 54,472 $ 33,187 $ 87,659 Transportation Authority (OCTA) for the Purchase and Sale of a 13.58 acres real property located at 1750 South Douglass Road in Anaheim. The 72
CITY OF ANAHEIM purchase price for the site is $32,500. The City paid $1,000 at the close of Sanitation Utility escrow and the remaining $31,500 will be payable to OCTA over 13 years Fiscal Year Ending 6/30 Principal Interest Total and bears 2% simple interest per annum. Annual principal payments are 2019 $ 19 $ 4 $ 23 due on or before July 10th each year commencing 2012. The payment of 2020 20 3 23 accrued interest is deferred until equal payments of $1,883 are due and 20 3 23 payable on or before July 10, 2024 and July 10, 2025. The loan is payable 2021 with the Anaheim Tourism Improvement Special District (ATID) special 2022 21 2 23 assessments and Measure M2 Local Fair Share funds. OCTA will retain 2023 21 2 23 payments from Anaheim's "Local Fair Share" funds allocated by OCTA 2024-2026 76 3 79 under Measure M2 each year until the final payment is made on July 10, Total notes and loans $ 177 $ 17 $ 194 2025. At June 30, 2018, accrued interest payable for the ARTIC loan was $2,998. The City may elect to provide alternative funding from other City Convention, Sports and Entertainment Venues funds for transportation related purposes, such as gas tax funds. At June 30, 2018, the outstanding balance of the ARTIC loan was $16,500. Loan Fiscal Year Ending 6/30 Principal Interest Total 2019 $ 2 $ 2 debt service requirements to maturity are as follows: 2020 2 2 Fiscal Year Ending 6/30 Principal Interest Total 2021 3 $ 4 2019 $ 3,500 $ 3,500 2022 3 4 2020 3,500 3,500 2023 3 4 2021 3,500 3,500 2024-2026 10 10 2022 4,000 4,000 Total notes and loans $ 23 $ 3 $ 26 2023 2,000 2,000 2024-2025 $ 3,765 3,765 ARBITRAGE Total notes and loans $ 16,500 $ 3,765 $ 20,265 The Tax Reform Act of 1986 (Act) substantially revised the treatment to be afforded to earnings on the proceeds of tax-exempt debt, and requires the 800 Megahertz Communication Equipment loan payable City to calculate and remit rebatable arbitrage earnings to the Internal Portion of the 800 Megahertz Communication Equipment financing were Revenue Service. Certain of the City's debt and interest earned on the allocated to The Electric Utility, the Sanitation Utility and the Convention, proceeds thereof are subject to the requirements of the Act. The City has Sports & Entertainment Venues. Loan debt service requirements to maturity accrued a liability for estimated rebatable arbitrage earnings and has set are as follows: aside such earnings as restricted cash. At June 30, 2018, the arbitrage rebate liability for governmental and business-type activities was zero and Electric Utility $132, respectively. Fiscal Year Ending 6/30. Principal Interest Total COMPLIANCE WITH DEBT COVENANTS 2019 $ 29 $ 5 $ 34 35 There are various limitations and restrictions contained in the City's bonds 2020 31 4 and certificates of participation indentures. The City believes they are in 2021 31 4 35 compliance with all significant limitations and restrictions. 2022 32 3 35 2023 32 3 35 DEBT ISSUANCES 2024-2026 117 4 121 City - Debt Issuance Total notes and loans $ 272 $ 23 $ 295 On September 1, 2017, the City issued a loan of $2,250 with Los Altos V. LP at an interest rate of 5% per annum to purchase the former Northgate Market site located at 718-744 N. Anaheim Boulevard for the purpose of developing a Community Learning Center. The City has recorded the loan proceed ($2,250) and the land acquisition expenditure ($4,750) in the 73
CITY OF ANAHEIM Community Development Block Grant nonmajor special revenue fund. The DEBT RETIREMENTS annual loan payment will be funded from the restricted resources of the Debt Defeased Community Development Block Grant yearly entitlement. Total debt service The City defeased the following bonds prior to June 30, 2018: to maturity is $2,579. Outstanding Electric Utility - Debt Issuances 6/30/2018 On December 21, 2017, the Electric Utility issued Anaheim Housing and Electric Utility Public Improvement Authority (AHPIA) Bonds Series 2017-A and 2017-B in 2009-A Electric Revenue Bonds $ 58,260 the principal amount of $237,745 at a premium of $36,027 to partially refund 2011-A Electric Revenue Bonds 78,110 the AHPIA 2016 A&B Revenue Refunding Bonds ($143,470), the Anaheim 2012-A Electric Revenue Bonds 29,140 Public Financing Authority 2011-A ($78,110) and 2012-A ($29,140) 2016-A Electric Revenue Bonds 91,610 Revenue Bonds, to fund debt service reserve and cost of issuance expenses. The true interest costs are 1.98% and 3.60% for the 2017-A and Water Utility 2017-B respectively. The total debt service to maturity is $374,460. The 2008 Water Systern Revenue Bonds 46,595 Electric Utility reduced its total debt service payments over the life of the $ 303,715 refunded bonds by $19,217, and obtained a net present value savings of $12,378. In the refunding, the proceeds of the refunding issue were placed in irrevocable escrow accounts and invested in government securities that, The bond proceeds, net of premium and along with $17,614 of the previous together with interest earnings thereon, will provide amounts sufficient for debt service reserve and accrued debt service of $1,997 totaled $293,383 future payments of interest and principal on the issues refunded. Refunded were deposited as follows: debt is not included in the City's accompanying basic financial statements as the City has satisfied its obligation through the in-substance defeasance of these issues. 2017-A 2017-B Total Debt service reserve refund $ 2,857 $ 14,757 $ 17,614 CONDUIT FINANCINGS Cost of issuance fund 206 900 1,106 City Deposited in escrow for the refundings of: The City has entered into two conduit financings on behalf of a community care provider facility and one to facilitate the management agreement for 2011 APFA 86,830 86,830 the Honda Center (formerly the Arrowhead Pond) of Anaheim. In 2012 APFA 33,213 33,213 accordance with applicable agreements, the City has no obligation for debt 2016AAPFA 102,348 102,348 service payments and therefore, the debt is not reflected in the 52,272 accompanying basic financial statements. Bonds payable and certificates of 20168 APFA 52,272 participation related to conduit financings outstanding at June 30, 2018, Total $ 55,335 $238,048 $ 293,383 were as follows: Sanitation Utility - Debt Issuance Date Final Amount Outstanding Issued Maturity Issued 6/30/2018 On January 25, 2018, the Anaheim Housing and Public Improvement Authority (AHPIA) sold Sewer Revenue Bonds, Series 2018 with a principal 1993 Anaheim Memorial Hospital Association 10/15/1993 5/15/2020 $ 46,690 $ 6,145 amount of $45,705 and at a premium of $9,036 for a total of $54,741 to refund the $39,395 outstanding principal balance on the 2007 Sewer 2003 Anaheim Arena Financing Project 12/11/2003 6/1/2023 42,600 19,500 Revenue Bonds and to provide additional financing of $15,000 to complete more sewer system improvements throughout the City. The Sanitation Total $ 89,290 $ 25,645 Utility reduced its total debt service payments over the life of the bonds by
$9,671, and obtained a present value savings of $6,766. Anaheim Housing Authority The Anaheim Housing Authority has entered into conduit debt financings on behalf of various developers to assist with the acquisition, construction, equipping, rehabilitation and refinancing of multifamily residential rental 74
CITY OF ANAHEIM projects within the City of Anaheim. In accordance with the bond Bonds Payable documents, neither the City nor the Housing Authority has an obligation for debt service payments and therefore, the debt is not reflected in the 2007 Tax Allocation Refunding Bonds accompanying basic financial statements. Housing Authority revenue bonds The Successor Agency will repay a total of $67,240, principal and interest, related to conduit financings outstanding at June 30, 2018, were as follows: for the outstanding 2007 tax allocation bonds issued in December 2007 from the semi-annual Redevelopment Property Tax Trust Fund (RPTTF) Date Final Amount Outstanding Issued Maturity Issued 6/30/2018 revenue allocations. Proceeds from the bonds provided financing for public Heritage Village Apartments 11/12/92 7/15/33 $ 8,485 $ 5,485 improvements related to the merged project areas, for the supply of low-and Sage Park Project 11/1/98 11/1/28 5,500 5,500 moderate-income housing within the City, to repay certain Redevelopment Sciara Court Apartments 11/1/04 12/1/34 8,200 4,824 Agency loan obligations and to advance refund the 1992, 1997 and 2000 Bel Age Manor Apartments 2/1/08 2/1/44 22,350 19,399 bonds. The bonds bear interest at rates ranging from 4.25% to 6.50% and 5/15/09 4/15/39 are payable through February 2031. During the fiscal year ended June 30, Pradera Apartments (Lincoln Anaheim) Phase B 23,217 7,448 12/14/12 1/1/46 2018, total principal and interest paid was $18,008. Anton Monaco Apartments 35,460 34,019 Crossings at Cherry Orchard Apartments Tranche A 8/23/12 12/1/44 9,365 1,060 In January 2018, series A and C of the 2007 Tax Allocation Bonds were Crossings at Cherry Orchard Apartments Tranche B 8/23/12 12/1/29 2,985 2,467 refunded through the issuance of the 2018 TaxAllocation Refunding Bonds. Paseo Village Apartments 2/28/13 9/1/45 19,750 12,446 Debt service requirements to maturity for 2007 Tax Allocation bonds, series Village Center Apartments 8/7/14 3/1/47 15,000 15,000 B and D are as follows: Pebble Cove Apartments Series A 8/19/15 9/1/31 13,000 12,668 Pebble Cove Apartments Taxable Subordinate Series 8/1/15 8/1/55 2015A 3,550 Fiscal Year Ending 6/30 Principal Interest Total 3,550 Hermosa Village Apartments Phase 1 Series A-1 12/28/16 7/1/49 34,169 34,169 2019 $ 2,755 $ 2,880 $ 5,635 Hermosa Village Apartments Phase 1 Series A-2 12/28/16 7/1/49 6,859 6,859 2020 2,935 2,700 5,635 Miracle Terrace Apartments Series B-1 1/10/17 2/1/50 26,555 26,555 2021 3,130 2,509 5,639 Miracle Terrace Apartments Series B-2 1/10/17 2/1/20 11,445 11,445 2022 3,330 2,306 5,636 Cobblestone Apartments Series A-1 3/14/17 10/1/54 6,185 6,185 2023 1,780 2,089 3,869 Cobblestone Apartments Series A-2 3/14/17 10/1/19 2,435' 2,435 2024-2028 14,815 8,435 23,250 Sea Wind Apartments Series B-1 3/14/17 10/1/54 11,015 11,015 2029-2031 15,515 2,061 17,576 Sea Wind Apartments Series B-2 3/14/17 10/1/19 4,340 4,340 Total bonds $ 44,260 $ 22,980 $ 67,240 Total $269,865 $ 226,869 2018 Tax Allocation Refunding Bonds FIDUCIARY FUNDS On January 25, 2018, the Successor Agency issued Tax Allocation Successor Agency Refunding Bonds, 2018 Series A and B. The bond proceeds together with the 2007 series A and C bond reserve funds were used to refund the 2007 The following is a summary of changes in long-term liabilities for the year ended June 30, 2018: Tax Allocation Bonds series A and C, and the 2010 Recovery Economic Zone Development Bonds. The Successor Agency will repay a total of Within $159,046, principal and interest, from the semi-annual RPTTF revenue Beginning Additions/ Reductions/ Ending One Balance Proceeds Payments Balance Year allocations. The refunding bonds bear interest at rates ranging from 2.27% to 2.50% and are payable through February 2031. Bonds payable $193,960 $112,195 $ (149,700) $ 156,455 $ 7,225 Premium/(discount), net 2,032 23,041 (3,158) 21,915 Debt service requirements to maturity for 2018 Tax Allocation Refunding Notes and loans payable 5,832 (400) 5,432 443 bonds are as follows: Due to City of Anaheim 11,610 (1,072) 10,538 1,072 Pollution remediation liability 17,888 (310) 17,578 393 Total $231,322 $ 135,236 $ (154,640) $ 211,918 $ 9,133 75
CITY OF ANAHEIM Fiscal Year Ending 6/30 Principal Interest Total whether or not the entire amount has been repaid. At June 30, 2018, the outstanding balance of the participation note was $2,685. 2019 $ 4,470 $ 5,570 $ 10,040 2020 4,660 5,379 10,039 Debt service requirements to maturity for the Successor Agency notes 2021 4,885 5,153 10,038 payable and contractual commitments to be paid from future RPTTF revenues are as follows: 2022 5,130 4,909 10,039 2023 7,155 4,653 11,808 2024-2028 47,340 17,269 64,609 Fiscal Year Ending 6/30 Principal Interest Total 2029-2031 38,555 3,918 42,473 2019 $ 443 $ 609 $ 1,052 Total 112,195 46,851 159,046 2020 489 579 1,068 Unamortized bond 2021 1,792 439 2,231 premium/discounts, net 21,915 21,915 2022 428 428 2034 428 428 Total bonds $ 134,110 $ 46,851 $ 180,961 2023-2027 416 1,725 2,141 Notes and Loans Payable 2028-2032 1,273 868 2,141 Savi Ranch Associates note payable 2034 1,019 193 1,212 Total notes and "loans $ 5,432 $ 5,269 $ 10,701 In July 1989, the former Redevelopment Agency executed a note with Savi Ranch Associates, a California general partnership. The amount of the note Due to the City of Anaheim totaled $2,707 and bears interest at 9.5% per annum. The note is payable from net property tax increment as defined in the Redevelopment Agency The Successor Agency will repay a total of $5,855 outstanding long-term note. If there is insufficient RPTTF revenue to pay for principal and interest obligations, principal and interest, from the semi-annual RPTTF revenue at the termination of the River Valley project area plan in November 2031, allocations for the $10,000 Cooperation Agreement dated April 1, 2003, the note ceases to be an obligation of the Successor Agency. For the fiscal between the former Redevelopment Agency and the City, whereby the City year ended June 30, 2018, total interest paid was $588. assisted the former Agency with the development of the Anaheim Westgate Center (Westgate project) utilizing $10,000 of funds from the HUD Contractual obligations Section 108 loan. This Cooperation Agreement obligation (HUD Section As part of the Redevelopment Agency's economic development program to 108 loan) bears interest ranging from 1.74% to 5.97% and is payable semi-attract and retain businesses in the City, the former Redevelopment Agency annually through August 2023. At June 30, 2018, outstanding principal due has entered into various contractual obligations to reimburse tenant to the City for the Westgate project obligation was $4,968. Principal and improvement costs to be paid from property tax increment revenues interest paid for the current fiscal year were $990. (thereafter RPTIF). At June 30, 2018, the outstanding balance of these The Successor Agency will repay a total of $5,963 outstanding long-term obligations totaled $40. obligations, principal and interest, from the semi-annual RPTTF revenue In December 1992, the former Redevelopment Agency has entered into an allocations for the $7,000 Cooperation Agreement dated June 2010 agreement with California State Teachers Retirement System (CALSTRS), between the former Redevelopment Agency and the City, whereby the City to share in the development costs of the Plaza Redevelopment Project. In assisted the former Redevelopment Agency with the rehabilitation of the March 2004, CALSTRS assigned the agreement to the new owners, Pan historic Packing House site utilizing proceeds from the HUD Section 108 Pacific Retail Properties, Inc. (PPRP). In October 2006, Kimco Realty loan. This Cooperation Agreement obligation (HUD 108 Section loan) bears Corporation (KRC) acquired PPRP including the assumption of the interest ranging from 1.68% to 3.98% and is payable over 20 years assigned plaza project agreement. The KRC participation note bears 7% beginning on February 1, 2011 through August 1, 2030. As of June 2018, simple interest rate, and has a maximum term of 25 years. The Successor the outstanding principal due to the City for the Packing House site project Agency's obligation to repay the note is entirely contingent on the revenues obligation was $4,686. Principal and interest paid for the current fiscal year generated by the project. The note will be forgiven at the end of the term were $528. 76
CITY OF ANAHEIM In 2013, the Successor Agency entered into a Cooperative Agreements At June 30, 2018, the City has the following outstanding Mello-Roos special with the City whereby the City assisted the Successor Agency by providing tax bonds: a loan of $1,563 to finance various Successor Agency projects. The Successor Agency will repay the City from future RPTTF revenue Outstanding 6/30/2018 allocation. At June 30, 2017, the outstanding balance of these loan are $884. CFO 06-02 $ 7,265 Westgate Pollution Remediation Obligation CFO 08-01 60,305
$ 67,570 In June 2003, the former Redevelopment Agency acquired property located at 2951 West Lincoln Avenue as part of a redevelopment project-named the In February 2007, the City issued $9,060 in special tax bonds to finance a Westgate project. Approximately 11 acres of the property were formerly portion of the cost of acquisition and construction of facilities in the Platinum known as the Sparks and Rains Landfills. The County of Orange was the Triangle of Anaheim, Community Facility District 06-2. Stadium Loft. On operator of these landfills until 1960. In November 2008, the County paid August 10, 2016, the outstanding balance of $7,680 of the 2007 special tax the Redevelopment Agency $5,176 in settlement of claims related to the bonds were refunded by Special Tax Refunding Bonds, Series 2016, CFO pollution remediation for the Westgate project site prior to the development 06-02, in the principal amount of $7,540 and at a premium of $91. The City of a shopping center. The total costs of the pollution remediation work reduced the CFO 06-2 total debt service payments over the life of the amounted to $12,420 based on actual contract received for the project. refunded bonds by $1,989 with a present value savings of $1,352. The true During the year ended June 30, 2015, management identified potential interest cost is 2.89% payable semi-annually commencing from March 1, additional pollution remediation costs including ongoing maintenance 2017 through September 1, 2037. Balance of total debt service is $9,598 to responsibilities required for the Westgate project amounting to $18,576. At maturity.
June 30, 2018, the pollution remediation liability is estimated to be $17,578. In August 2010, the City issued $28,630 in special tax bonds, Series 2010 Mello-Roos Community Facilities Districts to finance a portion of the cost of acquisition and construction of facilities in the Platinum Triangle of Anaheim, Community Facility District 08-1 and to The City issued special tax bonds to finance construction in various fund a reserve fund for the Series 2010 Bonds. On August 10, 2016 the City Community Facilities Districts (CFO). These bonds were authorized issued Special Tax Bonds, Series 2016, CFO 08-1 in the principal amount of pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds $60,000 and at a premium of $5,923. The bonds are being used to pr?vide are payable from a special assessment tax and are non-recourse bonds financing for acquisition and construction of certain public facilities secured by the properties. Neither the faith and credit nor the taxing power necessary for the continued development of the District, and to refund of the City, the State of California or any political subdivision of either of the $22,730 outstanding principal of the CFO 08-1, Special Tax Bonds, Series foregoing is pledged to the payment of the *bonds. The bonds are not 201 O. The City reduced the CFO 08-1 total debt service payments over the general or special obligations of the City, nor do they contain any credit life of the refunded bonds by $13,325 with a present value savings of enhancements that secondarily pledge existing or future resources of the $8,649. The true interest cost is 3.38% payable semiannually commencing City, accordingly they are not reflected in the accompanying basic financial from March 1, 2017 through September 1, 2037. Balance of total debt statements. The City is acting as agent only for the property owners in service is $106,366 to maturity. collecting the special assessments and forwarding the collections to the fiscal agent. This activity is recorded in an agency fund in the basic financial statements. 77
CITY OF ANAHEIM NOTE 9 - SEGMENT INFORMATION: Condensed Statement of Revenues, Expenses and Changes in Net Position The Sanitation Utility Fund issued revenue bonds to finance sewer system Waste water fees (pledged against bonds) $ 13,500 expansion and improvements. The Sanitation Utility Fund accounts for Other revenues 148 three activities: solid waste collection, wastewater, and street cleaning. Depreciation and amortization (2,334) However, investors in the revenue bonds rely solely on revenue generated through wastewater activities for repayment. Summary financial information Other operating expenses (6,779) for wastewater activities is presented below: Total operating Income 4,535 Nonoperating income(expenses) Condensed Statement of Net Position Interest income 315 Interest expense (1,706) Assets Loss on disposal of capital assets (2) Cash and cash equivalents $ 6,760 Capital contribution 572 Investments 23,808 Transfer out (550) Other current assets 1,770 Total nonoperating expense (1,371) Restricted cash and cash equivalents 4,409 Change in net position 3,164 Restricted investments 20,381 Net position at beginning of year, as adjusted 98,607 Capital assets, net 111,256 Net position at end of year $ 101,771 Total assets 168,384 Deferred outflows of resources 2,470 Condensed Statement of Cash Flows Liabilities Net cash provided by (used for): Current liabilities 2,587 Operating activities $ 8,533 Current liabilities payable from restricted assets 1,946 Noncapital financing activities (550) Noncurrent liabilities 63,558 Capital and related financing activities 3,764 Total liabilities 68,091 Investing activities (16,575) Deferred inflows of resources 992 Net decrease (4,828) Net Position Beginning cash and cash equivalents 15,997 Net investment in capital assets 68,014 Ending cash and cash equivalents 11,169 Restricted for debt services 450 Reconciliation of cash and cash equivalents Restricted for capital projects 10,822 Cash and cash equivalent 6,760 Unrestricted 22,485 Restricted cash and cash equivalent 4,409 Total net position $ 101,771 Total cash and cash equivalent $ 11,169 78
CITY OF ANAHEIM NOTE 10 - PENSIONS: Police Safety Prior to .on or after General information about the Pension Plans Hire Date January 1, 2013 January 1, 2013 Plan Description Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service The City provides pension benefits to eligible full-time employees in three Benefit payments monthly for life monthly for life separate pension plans: Miscellaneous Plan, Police Safety Plan and Fire Retirement age 50 52-57 Safety Plan. These plans are agent multiple-employer public employee Monthly benefits, as a % of eligible compensation 3.00% 2.70% defined benefit plans and are administered through the California Public Required employee contribution rates 9.00% 12.00% Employees' Retirement System (CalPERS), which acts as a common 21.081% 21.081% Required employer contribution rates investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are Fire & Rescue Safety established by State statute and City ordinance. CalPERS issues publicly available reports that include a
- full description of the pension plans Prior to On or after January 1, 2013 January 1, 2013 regarding benefit provisions, assumptions and membership information that Hire Date can be found on the CalPERS website @www.calpers.ca.gov. Benefit formula 3.0%@50 2.7%@57 Benefit vesting schedule 5 years service 5 years service Benefits Provided Benefit payments monthly for life monthly for life CalPERS provides service retirement and disability benefits, annual cost of Retirement age 50 50-57 living adjustments and death benefits to plan members, who must be public 3.00% 2.0%-2.7%
Monthly benefits, as a % of eligible compensation employees and beneficiaries. Benefits are based on years of credited 10.75% Required employee contribution rates 9.00% service, equal to one year of full time employment. Members with five years Required employer contribution rates 17.657% 17.657% of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 Employees Covered years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death At June 30, 2017, the following employees were covered by the benefit Benefit. The cost of living adjustments for each plan are applied as terms for each Plan: specified by the Public Employee's Retirement Law. Miscellan- Police Fire eous Safety Safety The Plans' provisions and benefits in effect at June 30, 2018 are Inactive employees or beneficiaries currently receiving benefits 2,045 549 305 summarized as follows: 1,541 69 56 Inactive employees entitled to but not yet receiving benefits Active employees 1,709 414 205 Miscellaneous On or after Total 5,295 1,032 566 Prior to Hire Date January 1, 2013 January 1, 2013 2.7%@55 2.0%@62 Contributions Benefit formula Benefit vesting schedule 5 years service 5 years service Section 20814(c) of the California Public Employees' Retirement Law Benefit payments monthly for life monthly for life (PERL) requires that the employer contribution rates for all public Retirement age 50-55 52-65 employers be determined on an annual basis by the actuary and shall be Monthly benefits, as a% of eligible compensation 2.70% 2.00% effective on the July 1 following notice of a change in the rate. The total plan Required employee contribution rates 8.00% 6.75% contributions are determined through CalPERS' annual actuarial valuation Required employer contribution rates 10.587% 10.587% process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability, The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. 79
CITY OF ANAHEIM Effective with fiscal year 2018, CalPERS began collecting employer contributions toward the plan's unfunded liability portions as dollar amounts instead of the prior method of a contribution rate. The total required minimum employer contribution is the sum of the Employer Normal Cost Rate (Employer Rate, expressed as a percentage of payroll) plus the Employer Unfunded Accrued Liability (UAL) Contribution amount (in dollar). The following table summarizes the required contribution rates by employee and employer effective for fiscal year 2018. The contribution requirements of plan members and the City are established and may be amended by CalPERS. Employer Rate Total Rate CalPERS 1 Retirement Employee Total FY 2018 UAL Employee Group Membership Formula Rate Employee 2 City Employee City Rate Contribution 3 Miscellaneous Employees Management; Confidential Classic 2.7%@55 8.00% 4.00% 6.59% 12.00% 6.59% 18.59% Anaheim Municipal Employees Association (AMEA) General New 2%@62 6.75% 0.00% 10.59% 6.75% 10.59% 17.34% $22,936 Anaheim Municipal Employees Association (AMEA) Clerical International Brotherhood of Electrical Workers (!BEW) Anaheim Police Association Trainees Safety Employees Fire Management Classic 3%@50 9.00% 3.00% 14.66% 12.00% 14.66% 26.66% Anaheim Fire Association (AFA) Classic 2%@50 9.00% 3.00% 14.66% 12.00% 14.66% 26.66% New 2.7%@57 10.75% 0.00% 17.66% 10.75% 17.66% 28.41% $5,880 Police Management Classic 3%@50 9.00% 3.00% 18.08% 12.00% 18.08% 30.08% Anaheim Police Management Association (APMA) New 2.7%@57 12.00% 0.00% 21.08% 12.00% 21.08% 33.08% $9,491 Anaheim Police Association (APA) 1 Definition of a 'New' PERS member A new hire who is brought in Cal PERS membership for the first time on or after January 1, 2013, and who has no prior membership in any California public retirement system. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system. A member who first established CalPERS membership prior to January 1, 2013, and who is rehired by a different CALPERS employer after a break in service of greater than six months. 2 PERS Cost Share is the employee contribution towards the employer's Normal Cost (NC) Rate. Normal cost is the annual cost of service accrual for the upcoming fiscal year for active employees. Normal cost is shown as a percentage of payroll and paid as part of the payroll reporting process. 3 The Unfunded Accrued Liability (UAL) is the amortized dollar amount needeil to fund past service credit earned (or accrued) for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of the valuation date The pension plans (pensions) are recognized in the government-wide recorded as a component of pension expense beginning with the period in financial statements and proprietary funds financial statements on an which the difference incurred. accrual basis of accounting, while the contributions to the pension plan are Projected earnings on pension investments are recognized as a component recognized as expenditures on modified accrual basis of accounting on the of pension expense. Differences between projected and actual investment governmental fund statements in the General Fund, the Housing Authority earnings are reported as deferred inflows of resources or deferred outflows Major Special Revenue Fund, the Nonmajor Special Revenue Fund and the of resources and amortized as a component of pension expense on a Nonmajor Capital Project Funds. closed basis over a five-year period beginning with the period in which the The net pension liability in the Statement of Net Position represents the difference occurred. City's excess of the total pension liability over the fiduciary net position Net Pension Liability reflected on the Valuation Reports provided by CalPERS. The net pension liabilities are measured as of the City's prior fiscal year. Changes in net The City's net pension liability for each Plan is measured as the total pension liability are recorded as pension expense or as deferred inflows of pension liability, less the pension plan's fiduciary net position. The net resources or deferred outflows of resources depending on the nature of the pension liability of each of the Plan is measured as of June 30, 2017. change. Liabilities are based on the results of the actuarial calculations performed as The changes in net pension liability that are recorded as deferred inflows of of June 30, 2016 and were rolled forward to determine the June 30, 2017 resources or deferred outflows of resources that arise from changes in total pension liability. Fiduciary net position is based on fair value of actuarial assumptions or other inputs and differences between expected or investments as of June 30, 2017. actual experience are amortized over the weighted average remaining A summary of principal assumptions and methods used to determine the service life of all participants in the respective pension plan and are net pension liability is shown below. 80
CITY OF ANAHEIM Actuarial Assumptions: assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical Valuation Date (VD) June 30, 2016 returns of all the funds' asset classes, expected compound (geometric) Measurement Date (MD) June 30, 2017 returns were calculated over the short-term (first 10 years) and the long-Measurement Period July 1, 2016 to June 30, 2017 term (11-60 years) using a building-block approach. Using the expected Reporting Date (RD) June 30, 2018 nominal returns for botn short-term and long-term the present value of benefits was calculated for each fund. The expected rate of return was set Actuarial Cost Method Entry Age Normal in accordance with the requirements of by calculating the single equivalent expected return that arrived at the same GASB 68 present value of benefits for cash flows as the one calculated using both Asset Valuation Method Market Value of Assets short-term and long-term returns. The expected rate of return was then set Actuarial Assumptions: equivalent to the single equivalent rate calculated above and rounded down Discount Rate 7.15% to the nearest one quarter of one percent. The table below reflects long-Inflation 2.75% term expected real rate of return by asset class. Salary Increase Varies by Entry Age and Service The rate of return was calculated using the capital market assumptions Payroll Growth 3.00% applied to determine the discount rate and asset allocation. The target Investment Rate of Return 7.15% Net of Pension Plan Investment and Administrative allocation shown was adopted by CalPERS effective July 1, 2014. Expenses, includes inflation Current Target Real Return Real Return Retirement Age The probabilities of Retirement are based on the 2014 Asset Class Allocation Years 1-10 1 Years 11+ 2 CalPERS Experience Study for the period from 1997 to 2011. Global Equity 47.00% 4.90 % 5.38 % Mortality The probabilities of mortality are .based on the 2014 Global Fixed Income 19.00% 0.80 % 2.27 % CalPERS Experience Study for the period from 1997 to 1.39 % 2011. Pre-retirement and Post-retirement mortality rates Inflation Sensitive 6.00% 0.60 % include 20 years of projected mortality improvement using Private Equity 12.00% 6.60 % 6.63 % Scale BB published by the Society of Actuary. Real Estate 11.00% 2.80 % 5.21 % Post Retirement Benefits Contract COLA up to 2.75% until Purchasing Power Infrastructure and Forestland 3.00% 3.90 % 5.36 % Increase Protection Allowance Floor on Purchasing Power applies, (0.90 %) 2.75% thereafter. Liquidity 2.00% (0.40 %) 100.00% Change of Assumptions 1 An exoected inflation of 2.5% used for this oeriod In 2017, the accounting discount rate reduced from 7.65% to 7.15%. 2 An expected inflation of 3.0% used for this period Discount Rate The discount rate used to measure the total pension liability was 7.15 Recognition of Gains and Losses percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested Under GASB 68, gains and losses related to changes in t_otal pension plans that would most likely result in a discount rate that would be different liability and fiduciary net position are recognized in pension expense from the actuarially assumed discount rate. The tests revealed the assets systematically over time. would not run out. Therefore, the current 7.15 percent discount rate is The first amortized amounts are recognized in pension expense for the year appropriate, and the use of the municipal bond rate calculation is not the gain or loss occurs. The remaining amounts are categorized as deferred deemed necessary. The long-term expected discount rate of7.15 percent is outflows and deferred inflows of resources related to pensions.and are to be applied to all plans in the Public Employees Retirement Fund. recognized in future pension expense. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real Difference between projected and actual 5-year straight-line amortization rates of return (expected returns, net of pension plan investment expense earnings on investments and inflation) are developed for each major asset class. All other amounts Straight-line amortization over the average expected remaining service lives of all In determining the long-term expected rate of return, CalPERS took into members that are provided with benefits account both short-term and long-term market return expectations as well (active, inactive, and retired) as of the as the expected pension fund cash flows. Such cash flows were developed beginning of the measurement period 81
CITY OF ANAHEIM Change in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Net pension liability is the plan's total pension liability based on the entry Liability Net Position Liability age normal actuarial cost method less the plan's fiduciary net position. Fire & Rescue Safety Plan: (a) (b) = (c) (a) - (b) Balance at June 30, 2016 (VD) $ 394,090 $ 281,742 $ 112,348 The following table shows the changes in net pension liability for each Plan recognized over the measurement period: Changes recognized for the Measurement Period: Total Pension Plan Fiduciary Net Pension Service Cost 6,600 6,600 Liability Net Position Liability Interest on the Total Pension Liability 29,093 29,093 Miscellaneous Plan: (a) (b) = (c) (a) - (b) Changes of Assumptions 23,564 23,564 Balance at June 30, 2016 (VD) $ 1,245,540 $ 883,735 $ 361,805 Difference between Expected and Changes recognized for the Actual Experience (3,028) (3,028) Measurement Period: Plan to Plan Resource Movement Service Cost 23,736 23,736 Interest on the Total Pension Liability 93,754 93,754 Contribution from the Employer 10,350 (10,350) Changes of Assumptions 76,961 76,961 Contributions from Employees 2,316 (2,316) Difference between Expected and Net Investment Income 31,036 (31,036) Actual Experience 8,902 8,902 Benefit Payments, including Plan to Plan Resource Movement 2 (2) Refunds of Employee Contributions (22,071) (22,071) Contribution from the Employer 33,276 (33,276) 9,743 (9,743) Administrative Expenses (416) 416 Contributions from Employees Net Investment Income 97,855 (97,855) Net Changes during 2016-2017 34,158 21,215 12,943 Benefit Payments, including Balance at 6/30/2017 (MD) $ 428,248 $ 302,957 $ 125,291 Refunds of Employee Contributions (64,059) (64,059) Administrative Expenses (1,305) 1,305 Net Changes during 2016-2017 139,294 75,512 63,782 Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Balance at 6/30/2017 (MD) $ 1,384,834 $ 959,247 $ 425,587 Combined Total: (a) (b) = (c) (a) - (b) Balance at June 30, 2016 (VD) $2,324,818 $1,657,005 $ 667,813 Total Pension Plan Fiduciary Net Pension Changes recognized for the Liability Net Position Liability Police Safety Plan: (a) (b) = (c) (a) - (b) Measurement Period: Service Cost 46,250 46,250 Balance at June 30, 2016 (VD) $ 685,188 $ 491,528 $ 193,660 Interest on the Total Pension Liability 174,311 174,311 Changes recognized for the Changes of Assumptions 144,022 144,022 Measurement Period: Service Cost 15,914 15,914 Difference between Expected and Interest on the Total Pension Liability 51,464 51,464 Actual Experience 6,099 6,099 Changes of Assumptions 43,497 43,497 Plan to Plan Resource Movement 2 (2) Difference between Expected and Contribution from the Employer 63,240 (63,240) Actual Experience 225 225 Contributions from Employees 16,801 (16,801) Plan to Plan Resource Movement Contribution from the Employer 19,615 (19,615) Net Investment Income 183,153 (183,153) Contributions from Employees 4,741 (4,741) Benefit Payments, including Net Investment Income 54,262 (54,262) Refunds of Employee Contributions (120,325) (120,325) Benefit Payments, including Administrative Expenses (2,446) 2,446 Refunds of Employee Contributions (34,195) (34;195) Net Changes during 2016-2017 250,357 140,425 109,932 Administrative Expenses (725) 725 76,905 43,698 33,207 Balance at 6/30/2017 (MD) $2,575,175 $1,797,430 $ 777,745 Net Changes during 2016-2017 Balance at 6/30/2017 (MD) $ 762,093 $ 535,226 $ 226,867 82
CITY OF ANAHEIM Sensitivity of the Net Pension Liability to Changes in the Discount Rate $66,792 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of The following presents the net pension liability of the City's three Plans of the net pension liability in the measurement year ended June 30, 2018 . . the measurement date, calculated using the discount rate of 7.15 percent, Other amounts reported in deferred outflows and deferred inflows of a~ well as what the n~t pension liability would be if it were calculated using a resources related to pensions will be recognized as a component in pension discount rate that 1s 1 percentage-point lower (6.15 percent) or 1 expense as follows: percentage-point higher (8.15 percent) than the current rate: Measurement Period Discount Discount Discount Rate -1% Rate Rate+ 1% Ended June 30 Plans' Net Pension Liability (6.15%) (7.15%) (8.15%) 2018 $24,374 Miscellaneous $ 611,022 $ 425,587 $ 272,676 2019 73,294 Police Safety 332,815 226,867 140,125 2020 25,838 Fire & Rescue Safety 181,690 125,291 78,800 2021 (10,812) Combine total $ 1,125,527 $ 777,745 $ 491,601 Total $112,694 Pension Plan Fiduciary Net Position Payable to the Pension Plans At June 30, 2018, the City reported a payable of $878 for the outstanding Detailed information about each pension plan's fiduciary net position is amount of contributions to the pension plan required for the fiscal year available in the separately issued CalPERS financial reports. ended June 30, 2018. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Pension expense is the change in net pension liability from the previous fiscal year to the current fiscal year less adjustments. For the fiscal year ended June 30, 2018, the City recognized pension expense of $101,465. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Pension contributions subsequent to measurement date $ 66,792 Changes of Assumptions 102,279 $ 4,653 Difference between Expected and Actual Experiences 9;649 19,333 Net difference between projected and actual earnings on plan investments 24,752 Change in proportions 4,494 4,494 Total $207,966 $ 28,480 83
CITY OF ANAHEIM NOTE 11 - Other postemployment Ben.efits Plan Description The City provides other postemployment benefits (OPEB) to eligible regular full-time employees who retired from city services in a single-employer defined benefit healthcare plan (Plan). The Plan participates in the California Employers' Retiree Benefit Trust (CERBT) to pre-fund OPEB liabilities. The CERBT is an agent multiple employer plan consisting of an aggregation of single-employer plans, with pooled administrative and investment functions that are administered by CalPERS. A copy of the aggregated CERBT annual financial report may be obtained @www.calpers.ca.gov. The City's OPEB Plan provides medical, dental and life insurance coverage to eligible retirees. This coverage is available for employees who retire from City services with PERS and meet the eligibility requirements in accordance with City Personnel Resolutions and various Memoranda of Understanding summarized as follows: Employee Group Date of Hire Eligibility Requirement City Contribution Formulas 1 Management Before 1/1/1996 Age 50 with 1O years of continuous full time City 1.5 multiplied by Miscellaneous 2% @ 60 PERS retirement schedule based services; must have been awarded a retirement from on employee's age at retirement & City service accrued through 12/31/2005 Council - Unrepresented PERS as the reason for separation from City service Anaheim Municipal Employees Association (AMEA) Police Safety Before 7/6/2001 Age 50 with 1O years of continuous full time City 1.2 multiplied by 2% @ 50 Safety PERS based on the employee's age and services; must have been awarded a retirement from years of City service at the time of retirement PERS as the reason for separation from City service Fire Safety Before 11/9/2001 Age 50 with 1O years of continuous full time City 1.2 multiplied by 2%@ 50 Safety PERS based on the employee's age and services; must have been awarded a retirement from years of City service at the time of retirement PERS as the reason for separation from City service 1 The maximum City contribution for the retiree's OPEB is 95% of the annual contribution amount for active employees Regular full time employees hired after the dates above have access to the Contributions City's medical and dental plans but do not receive a defined benefit. The contribution requirements of plan members and the City are Benefits provided established in accordance with City Personnel Resolutions, Council Resolution and various Memoranda of Understanding. The retired plan The City provides healthcare, dental and vision benefits for retirees and members receiving benefits make varying contributions toward the cost of their dependents. Benefits are provided through payment of insurance these benefits. The City contributes an amount not less than the annual premiums. actuarially Determined Contribution (ADC) measured in accordance to the Additionally, full time employees who retire from the City at age 50 or older parameters of GASB Statement No. 75. The ADC represents a level of with 5 years of City service receive life insurance benefits. Retirees receive funding that, if paid on an ongoing basis, is projected to cover normal costs a paid-up life insurance policy at retirement. The City pays the full cost of each year and amortization of any unfunded actuary liabilities over a closed the life insurance coverage.
- 30-year period.
Employees Covered City contributions to the Plan occur as benefits are paid to retirees or contributions to the OPEB Trust. Benefit payments occur in the form of As of the June 30, 2017 actuarial valuation, the following employees were direct payments for premiums and taxes (explicit subsidies) and indirect covered by the benefit terms of the OPEB Plan: payments to retirees in the form of higher premiums for active employees (implicit subsidies). Inactive employees or beneficiaries currently receiving benefit payments 1,320 Inactive employees entitled to but not yet receiving benefit payments 84 For the fiscal year ended June 30, 2018, the City contributed the full amount Active employees 1,864 of the ADC totaled $16,368 of which included insurance premiums of 3,268
$19,069, implicit subsidy of $2,541, and cash contribution to the CERBT of Total
$306 offsetting by retiree contributions of $5,548.
84
CITY OF ANAHEIM Net OPEB Liability Change of Assumptions The City's OPES liability was measured as of June 30, 2017, and the total The June 30, 2017 actuarial valuation has the following changes since the prior OPEB liability used to calculate the net OPES liability was determined by an valuation: actuarial valuation as of that date. Actuarial Cost Method The cost method applied to develop the ADC is the Entry Age Normal Level Dollar Method. As required by GASB Actuarial assumptions. 75, the Entry Age Normal Level Percent of Pay method was used to develop liabilities. The difference was A summary of principal assumptions and methods used to determine the relatively minor. net OPEB liability is show below. Mortality improvement Updated from Bickmore Scale 2014 to Bickmore Scale Valuation Date (VD) June 30, 2017 2017 based on new data published by the Society of Actuaries and the Social Security Administration. Measurement Date (MD) June 30, 2017 Healthcare trend Assumed to increase at slightly higher rates from 2018 Measurement Period July 1, 2016 to June 30, 2017 through 2024 than was assumed in the prior valuation. Reporting Date (RD) June 30, 2018 Spouse coverage Modified the prior 75% assumption of future retiree spouse Actuarial Cost Method Entry Age Normal Cost, level percent of pay coverage to 70%, if eligible for explicit City benefits, and to 60%, if not eligible for explicit City benefits, based on a Asset Valuation Method Market Value of Assets review of current retiree and active employee elections. Actuarial Assumptions: Retiree participation Assumed participation of retirees age 70 or older and Long Term Return on Assets 7.28% eligible for, but waiving coverage, was reduced from 50% to 25%. Discount Rate 7.28% Discount Rate General Inflation Rate 2.75% Salary Increase 3.25% per year, used only to allocate the cost of benefits The discount rate used to measure the total OPEB liability was 7.28%. The between service years J)rojection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined Assumed Wage Inflation 3.0% per year, used to determine amortization payments contribution rates. Based on those assumptions, the OPEB plan's fiduciary if developed on a level percent of pay basis net position was projected to be available to make all projected OPEB Participants Valued Only current active employees and retired participants payments for current active and inactive employees. Therefore, the long-and covered dependents are valued. No future entrants term expected rate of return on OPEB plan investments was applied to all are considered in this valuation. periods of projected benefit payments to determine the total OPEB liability. Active employees expected to qualify for explicit City Participation Rates benefits in retirement: 90% of future retirees are The long-term expected rate of return on the CERBT OPEB plan assumed to elect coverage through the City in investments were determined using a building block approach in which retirement; expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major class. This Active employees not eligible for explicit City benefits in approach considers the general inflation rate assumption, real risk-free rate retirement: 22.5% are assumed to continue their current medical plan elections in retirement; of investment return ana risk premiums which vary by each asset due to unique attributes and risks. The City's OPEB Plan participates in CERBT Current retirees: All currently participating retirees are portfolio investment Strategy 1. The target allocation and best estimates of assumed to continue their existing medical and dental arithmetic real rates of return for each major asset class of Strategy 1 are plan elections for the remainder of their lifetime. 50% of summarized in the following table: retirees eligible for benefits but currently waiving coverage are assumed to rejoin the plan. Long-Term Demographic Based on the 2014 experience study of the CalPERS Target Expected Real using data from 1997 to 2011, except for a different basis Asset Class Allocation Rate of Return 1 used to project future mortality improvements. The 57% 5.71% representative mortality rates were those published by Global Equity CalPERS, adjusted to back out 20 years of Scale to Fixed Income 27% 2.40% central year 2008 Treasury Inflation-Protected Securities 5% 2.25% Bickmore Scale 2017 applied generationally Real Estate Investment Trusts 8% 7.88% Mortality Improvement Commodities 3% 4.95% Healthcare Trend 8.0% for year 2018, decreasing 0.5% per year to an ultimate rate of 5.0% for year 2025 & later 1 Geometric representation; inflation 3% 85
CITY OF ANAHEIM Recognition of Plan Changes and Gains and Losses Discount 1% Decrease Rate 1% Increase Under GASB 75, gains and losses related to changes in total OPEB liability 6.28% 7.28% 8.28% and fiduciary net position are recognized in OPEB expense systematically overtime. Net OPES Liability $220,440 $186,652 $158,696 Timing of recognition: Changes in the Total OPEB liability relating to Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost changes in plan benefits are recognized immediately (fully expensed) in the Trend Rates year in which the change occurs. Gains and Losses are amortized, with the applicable period based on the type of gain or loss. The first amortized The following presents the net OPEB liability of the City if it were calculated amount are recognized in OPEB expense for the year the gain or loss using health care cost trend rates that are 1 percentage-point lower or 1 occurs. The remaining amounts are categorized as aeferred outflows and percentage point higher than the current rate, for measurement period deferred inflows of resources related to OPEB and are to be recognized in ended June 30, 2017: future OPEB expense. Current Difference between projected and 5 year straight-line amortization 1% Decrease Medical Trend 1% Increase actual earnings on investments 7.0% 8.0% 9.0% All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that Net OPES Liability $153,721 $186,652 $227,649 are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. In OPEB Plan fiduciary net position determing the EARSL, all active, retired and inactive (vested) members are counted, with the* latter two Detailed information about the OPEB Plan's fiduciary net position is groups having O remaining service years. available in the separately issued CERBT annual financial report which may be obtained @www.calpers.ca.gov Changes in the OPEB Liability OPEB Expense and Deferred Outflows of Resources and Deferred Inflows The following table shows the changes in the net OPEB liability of the City's of Resources Related to OPEB Plan recognized over the measurement period. For the year ended June 30, 2018, the City recognized OPEB expense of Increase {Decrease) $13,886. At June 30, 2018, the City reportea deferred outflows of resources Plan and deferred inflows of resources related to OPEB from the following Total Fiduciary Net sources: OPEB Net OPEB Liabilities Position Liability Deferred Deferred (a) (b) (a) - (b) Outflows of Inflows of Balance at 06/30/2016 $274,520 $ 75,700 $198,820 Resources Resources Chanqes for the year: OPES contributions subsequent to measurement date $ 16,368 Service cost 2,032 2,032 3,801 19,550 19,550 ChanQes of Assumptions Interest on Total OPEB Liability Difference between Expected and Actual Experiences $ 11,837 Expected investment in.come 5,509 (5,509) 4,617 4,617 Net difference between projected and actual earninQs Chanqes of Assumptions 2,001 Differences between Expected and Actual (14,382) (14,382) on plan investments 16,016 (16,016) Total $ 20,169 $ 13,838 Contributions - Employer Investment experience 2,501 (2,501) (16,016) (16,016) Amount reported as deferred outflows of resources and deferred inflows of Benefit payments (41) 41 resources related to OPEB will be recognized in OPEB expense as follows: Trust Administrative Expense Net Chanqe (4,199) 7,969 (12,168)
$ 270,321 $ 83,669 $ 186,652 Measurement Period Balance at: 06/30/2017 Ended June 30 2018 $ (2,228)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate (2,228) 2019 The following presents the net OPEB liability of the City if it were calculated 2020 (2,228) using a discount rate that is 1 percentage-point lower (6.28%) or 1 2021 (2,228) percentage-point higher (8.28%) than the current rate: 2022 (1,125) Total $ (10,037) 86
CITY OF ANAHEIM NOTE 12- JOINT VENTURES AND JOINTLY-OWNED PROPERTIES: Members of the Board of Directors (the "Board") consist of one voting Board member and an alternate appointed by their governing body. Authority for Orange County - City Hazardous Materials Emergency Response Public entities in Orange County may receive services from the Fire The City participates in joint powers authority (JPA), the Authority for Authority by executing an agreement and paying a fair share contribution. Orange County-City Hazardous Materials Emergency Response (Hazmat), Audited financial information for the Fire Authority as of and for the year for the purposes of responding to, assessing the nature of, and stabilizing ended June 30, 2018, was as follows: any emergency created by the release or threatened release of hazardous Total assets $ 1,596 materials. Total liabilities 213 Members' equity 1,383 The following entities are members of Hazmat: City of Anaheim and City of Total revenues 6,328 Huntington Beach (provider ag,encies). Members of the Board of Directors Total expenses 6,461 (Hazmat Board) consist of one voting Board member and an alternate (133) appointed by the governing body from the provider agencies. Under the Change in net position Fifth Amendment to the JPA agreement, three representatives from the subscribing agencies are also voting Board Members. The following cities The City has no significant equity interest in the Fire & Rescue Authority, were subscribing agencies: Brea, Costa Mesa, Fountain Valley, Fullerton, and accordingly neither assets nor liabilities of the Fire & Rescue Authority Garden Grove, Newport Beach and Orange. have been recorded in the City's basic financial statements. For a copy of the Fire & Rescue Authority's separate financial statements, contact the Public entities in Orange County may receive hazardous materials Finance Director of the City. response services from the Hazmat by executing an agreement and paying a fair share contribution. Audited financial information for the joint powers North Net Joint Training Authority authority as of and for the year ended June 30, 2018, was as follows: The City participates in a joint powers authority, North Net Training Authority Total assets $ 277 (Authority), for the purpose of providing a joint use of a consolidated 277 Training Center and record keeping system for fire training services. Members' equity Total revenues 111 The following entities are members of the North Net Training Authority: City Total expenses 69 of Anaheim, City of Garden Grove and City of Orange. Members of the Change in net position 42 Board of Directors (the "Board") consist of one voting Board member and an alternate appointed by their governing body. Hazmat does not have any debt outstanding at June 30, 2018. Public entities in Orange County may receive training services from the The City has no significant equity interest in Hazmat, and accordingly Authority by executing a "subscription agreement" and by paying the annual neither assets nor liabilities of Hazmat have been recorded in the City's fee and other costs. Audited financial information for the Authority as of and basic financial statements. For a copy of Hazmat's separate financial for the year ended June 30, 2018, was as follows: statements, contact the Finance Director of the City. $ 1,700 Total assets Metro Cities Fire & Rescue Authority Total liabilities 171 Members' equity 1,529 The City participates in a joint powers authority, Metro Cities Fire Authority 1,083 Total revenues (Fire Authority), for the purpose of providing a central communication 1,044 network and record keeping system to support fire suppression, emergency Total expenses Change in net position 39 medical assistance, rescue service, and related services provided by the members of the Fire Authority. The following entities are members of the Fire Authority: City of Anaheim, City of Brea, City of Fountain Valley, City of Fullerton, City of Garden Grove, City of Huntington Beach, City of Newport Beach, and the City of Orange. 87
CITY OF ANAHEIM Jointly-owned utility plants and 2 net output is 900 megawatts each). The City is obligated for the following percentage of electrical facilities at IPA: Songs On December 29, 2006, The Electric Utility sold its 3.16% ownership Entitlement Expiration interest of SONGS to SCE. As such, the Electric Utility ceased recording all Generation: related operating expenses, except marine mitigation costs, and spent fuel lntermountain Power Project 13.225 % 2027 storage charges. Based on the SONGS settlement agreement, the Electric Utility is responsible for the City's share of marine mitigation costs up to The contract constitutes an obligation of the Electric Utility to make $2,300, and SCE is responsible for costs approximately $2,300 to $7,300. payments from revenues and requires payment of certain minimum The Electric Utility is responsible for spent fuel storage charges until the charges. These minimum charges include debt service requirements on the federal government takes possession. The Decommissioning Trust Fund financial obligations used to construct the plant. These requirements are will continue to pay for spent fuel storage charges. considered a cost of purchased power. As a former participant in SONGS, the Electric Utility is subject to Southern California Public Power Authority assessment of retrospective insurance premiums in the event of a nuclear incident at SONGS or any other licensed reactor in the United States of The Electric Utility is a member of the Southern California Public Power America. Authority (SCPPA), a joint powers agency. SCPPA provides for the financing and construction of electric generating and transmission projects San Juan Generating Station for participation by some or all of its members. To the extent the Electric On July 31, 2015, the Electric Utility and the other Parties involved with the Utility participates in projects developed by SCPPA, it is obligated for its San Juan Generating Plants, agreed to a plan for the closure of two of the proportional share of the cost of the project. The City is obligated for the four units. As co-owner of one of the units that is not being closed, on following percentage of electrical facilities owned by SCPPA: December 31, 2017, the Electric Utility relinquished its 10.04% ownership Entitlement Expiration interest in the existing coal-fired SJ, Unit 4, located near Waterflow, New Transmission: Mexico to the parties that will continue in the Plant. Other participants Souther Transmission System (STS) 17.6 % 2027 include Public Service of New Mexico, 45.485%; the City of Farmington, Mead-Adelanto Project (MAP) 13.5 2030 8.475%; the County of Los Alamos, 7.200%; and M-S-R Public Power Mead-Phoenix Project (MPP) 24.2 2030 Agency, 28.800%. The Electric Utility's original purchase cost and cumulative share of ongoing construction costs included in utility plant at Generation: December 31, 2017 amounted to $84,616. All capital assets related to the Hoover Dam Uprating (Hoover) 42.6 % 2018 San Juan unit were fully depreciated and retired as of June 30, 2018. There Magnolia Generating Station (Magnolia) 38 2037 are no separate financial statements for this venture, as each participant's Canyon Power Project (Canyon) 100 2040 interest is reflected in its respective financial statements. Refer to note 1 on Natural Gas Reserve Projects (Natural Gas) pages 53-54 Provision for decommissioning costs related to the SCPAA Natural Gas Project-Pinedale, Wyoming 35.7 % 2033 decommissioning trust fund set-aside for the future decommissioning of the SCPPA Natural Gas Project-Barnett, Texas 45.5 2033 Plant. NOTE 13 - COMMITMENTS AND CONTINGENCIES: Take or pay commitments lntermountain Power Agency As part of the take or pay commitments with IPA and SCPPA, the Electric The Electric Utility has entered into a power purchase contract with the Utility has agreed to pay its share of current and long-term obligations. lntermountain Power Agency (IPA) for delivery of electric power. The share Payment for these obligations will be made from the operating revenues of IPA power is equal to 13.225% of the generation output of IPA's two received during the year that the payment is due. A long-term obligation has recently uprated coal-fueled generating units located in Delta, Utah (Unit 1 not been recorded on 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 take-or-pay commitments that are 88
CITY OF ANAHEIM due and payable by the Electric Utility for each project and the final maturity the secondary market quarterly. At June 30, 2018, the value of prepaid Cap date. and Trade allowance is $19,854, and the value of the Cap and Trade obligation is $16,060. In addition to take-or-pay commitments referenced above, the City's entitlement requires the payment for fuel costs, operations and Operating Leases maintenance (O&M), administration and general (A&G) and other In January 2005, the City entered into a long-term noncancelable ground miscellaneous costs associated with the generation and transmission lease with City of Fullerton, for an approximately 1.56 acre site at the facilities discussed above. These costs do not have a similar structured Fullerton Municipal Airport for the operation of the Anaheim Police payment schedule as debt service; however, prior experience indicates that Department Heliport. The term of the lease is 40 years with two 10-year annual costs are generally consistent from year to year. extensions commencing from January 2005 and ending December 2044. Fiscal Year Natural The base rent is adjusted every five years by ten percent (10%). The City Ending 6/30 IPA STS MAP MPP Magnolia Gas Canyon Total constructed a building of approximately 30,000 square feet that includes 2019 $27,684 $13,704
$2,882 $1,555 $ 6,294 $5,360 $14,948 $72,427 offices, aircraft maintenance and storage facilities and other infrastructure 2020 30,496 12,003 2,859 1,538 6,293 4,895 16,668 74,752 supporting such facilities on the leased premise. Future minimum lease 2021 31,192 13,761 2,136 1,142 48,531 4,514 16,638 117,914 payments to be made from unrestricted revenues of the General Fund are 2022 12,3.51 16,403 5,436 4,169 16,629 54,988 as follows:
2023 10,415 12,602 4,801 3,854 16,618 48,290 35,028 22,800 15,371 82,921 155,676 Fiscal Year Ending June 30 2024-2028 (444) 2029-2033 23,433 10,502 98,665 132,600 2019 $ 59 2034-2038 30,030 102,641 132,671 2020 62 2039-2043 61,054 61,054 2021 65
$7,877 $4,235 $147,618 $48,665 $426,782 $850,372 Total $111,694 $103,501 2022 65
---- 2023 65 The fiscal year 2018 expenses for fuel, O&M, A&G and other costs at these 2024-2028 349 projects were as follows: 2029-2033 384 2034-2038 422 Fiscal Natural Year IPA STS MAP MPP Magnolia Gas Canyon Total 2039-2043 464
$5,572 $79 $472 $16,857 $659 $11,967 $75,908 2044-2045 143 2018 $40,302 Total minimum future rentals $ 2,078 Cap-and-Trade Program California Assembly Bill (AB) 32 requires that Utilities in California reduce The Honda Center their greenhouse gas (GHG) emissions to 1990 levels by the year 2020. It directed the California Air Resources Board (CARB) to develop regulations On January 26, 1999, the City entered into a series of lease transactions for of GHG that became effective January 2012. Emission compliance the Honda Center. Under these transactions, the City leased the Honda obligations under the Cap-and-Trade regulation began in January 2013. Center to a 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 Cap-and-Trade program (Program) was implemented beginning the City for 20 years, which was shorter than the then remaining term of the January 1, 2013. This Program requires Electric Utilities to have GHG management agreement between the third-party manager at that time allowances on an annual basis to offset GHG emissions associated with (Manager) and the City in consideration of an advance rental payment for generating electricity. CARB will provide a free allocation of GHG allowance the entire lease term. At the end of the sublease, the City has a purchase to each electric utility to mitigate retail rate impacts. This free allocation of option to purchase the trustee's rights under the lease for a fixed amount.
GHG allowance is expected to be sufficient to meet Electric Utility's GHG The advance rent payments to the City were deposited into a trust fund and compliance obligations for retail sales. During this fiscal year, an unused invested. The cash scheduled to be available from this trust fund is portion of retail allowance was sold for $10,596 to reduce future renewable sufficient to pay the City's rent payments for the term of the sublease and to energy costs for retail customers. The compliance obligation for the exercise the City's purchase option at the end of the sublease. The excess wholesale sales requires allowance to be obtained through the auction or in 89
CITY OF ANAHEIM of the amount of)he advance rent payment made by the trustee to the City 2013, the agreement was modified extending the Team's right to terminate over the deposit to the trust funds, after the payment of transaction the agreement by three years to October 16, 2019. expenses and payment to the Manager for agreeing to pledge its interest as Under t~e terms of_the agreement, the Team assumed full responsibility for Manager under the management agreement then in effect and agreeing to all Stadium operations and maintenance, including capital maintenance. undert~ke certain additional obligations to the transaction, was T~e Team books all Stadium and parking lot events (except for ten annual approximately $4,000. This amount was recognized by the City as C!tY, e~ents), pays a_ll expenses, and retains all revenue (subject to the unearned rev~nue ~nd _is being amortized over the sublease term. The City City s rights to share in certain net revenues) except that the City credits the has secured its obligations to the other parties to these lease transactions Tea~ up_ to $500 per year adjusted annually for CPI as a capital reserve by a pledge _of its ~espective interest in revenues from the facility, con~n?ut1?n, . calculated on. the basis of property taxes. The City's subordinate (with certain exceptions) to any interests of the debt holders of part1c1pat1on in net revenues includes amounts received by the Team above the facility. The City's obligations under these lease transactions are certain thresholds including paid admissions ($2.00 per paid admission in considered to be defeased in substance, and therefore the related liabilities excess _of 2.6 million admissions per year), net income from nongame as well as the trust assets have been excluded from the City's financial events ~in excess o~ $~,000 per year adjusted annually for CPI), and parking stat~me_nts. Th_e City's and AAM's respective rights under the FMA are lot net in~~me (25 Yo ~n ~xcess of $4,000 per year adjusted annually for subJect in certain respects to the effect of the 1999 lease transaction. CPI). Ad_d1t1onally, as indicated above, the City retained the right to book Effective December 16, 2003, the City and Anaheim Arena Management and retain all revenue from ten parking lot events per year. Major League LLC (AAM) entered (nto ~ Facility ~anagement Agreement (FMA) whereby ~aseball consented to the transfer of the Team in fiscal year 2003 to AAM has the exclusive right and license to manage, maintain and operate interests controlled by Arte Moreno. No changes in the terms of the all aspects ~f the Ho~da Center in accordance with the FMA through June agreement with the Team were made in connection with that transfer. 30, 2023, with an option to extend the term for an additional period not to The Aweement also provided that the City had the right to develop exceed 10 years. Annual distributions to the City, AAM and the County of approximately 42 acres of the parking lot development site. In 1998 a land Or~nge ~re required for their respective share of adjusted net revenues, as sale of $1,000 for a 1.25 acre site was approved for the construction of a define~ in the FMA. In the ev~nt th~t ~as~ on hand is insufficient to pay 1, 100-seat theatre called "Tinseltown Studios" (now known as "City National operating expenses, debt service, d1stnbut1ons to the City, the County of Grove of Anaheim"). In November 2002, the City purchased the facility and Orange, or other amounts payable, AAM shall make or cause an affiliate or the land for $6,700 from its then owner, SMG. Concurrent with the third-party lending institution to make loans for such purposes, as defined in ~urchase, the City gran~~d to Nederlander-Grove LLC (Nederlander) a the FMA. Such funds will be repaid from gross revenues or adjusted net license to operate the facility for three years with the right to extend another revenues, if any, as defined in and in accordance with disbursement five years. In May 2009, the management agreement was amended priorities established in the FMA. At June 30, 2018, the outstanding conduit extending the term to December 31, 2015 with the right to extend another debt on the Honda Center totaled $19,500. The debt is non-recourse, five year period. In June 2015, the option to extend was exercised, which payable from revenues generated by the facility. Neither the faith and credit extends the term to December 31, 2020. Additionally, under the amended nor t~e taxing power of the City is pledged to the payment of the debt. The man~gement agreement, effective January 1, 2009, Nederlander no longer debt_ 1s not a general or special obligation of the City, nor does it contain any receives a management fee of $150 and the City's share in the annual net credit enhancements that secondarily pledge existing or future resources of profits and losses from operations increased from 50% to 60%. the City (oth~r than revenues generated by the facility), and accordingly it is ~e?~rlander i_s ~esponsible for 100% of losses in excess of $400, thereby not reflected in the accompanying basic financial statements. limiting the City s share of net losses to a maximum of $240 in any given Angel Stadium of Anaheim year. The City may elect to terminate the agreement prior to expiration of the term under certain conditions, and pay the unamortized balance of On May 14, 1996, the City and the California Angels, LP (Team), which was capital assets purchased during the term to Nederlander. Concurrent with then managed by Disney Sports Enterprises, Inc. (subsequently known as the amendment to the management agreement, the parking license fee Anaheim Sports, Inc.), entered into an agreement to provide for the agreement was amended, wherein the parking license fees from operation and refurbishment of the Stadium. Pursuant to the agreement, the Nederlander were reduced to $176 and is subject to adjustment annually Team assumed responsibility for the operation of the Stadium on October 1, based on CPI increases. Nederlander paid the City $204 for the year ended 1996. The agreement runs for 33 years (subject to a limited Team option to June 30, 2018, for parking and common area maintenance. cancel at 20 years and the Team's right to extend the term). In September 90
CITY OF ANAHEIM Muzeo Grants In October 2007, the City and the former Redevelopment Agency entered Amounts received or receivable from grant agencies are subject to audit into a property operating agreement (Agreement) with the Muzeo and adjustmerit by granter agencies. Any disallowed claims, including Foundation to operate and provide programming for the Muzeo, the amounts already collected, may constitute a liability of the applicable funds. downtown museum. The Agreement is for a term of 30 years and provides The amount, if any, of expenditures that may be disallowed by the grantor for a line of credit for the first 3 years from the City to the Muzeo Foundation cannot be determined at this time, although the City expects such amounts, in an amount not to exceed $1,000 or 95% of pledges at an annual interest if any, to be immaterial. rate of 5%. The Agreement was amended on August 1, 2010, to extend the Construction and other significant commitments maturity date to June 30, 2015. It also amended the aggregate amount of the line of credit to $500 during fiscal year 2011 and $200 during each fiscal At June 30, 2018, the City had the following commitments with respect to year thereafter with amounts being converted to grants upon achieving fund unfinished capital projects, disposition and development agreements, raising thresholds. On June 30, 2014, the agreement was amended to reimbursement agreements and cooperation agreements: extend the maturity date to the June 30, 2019 and increased the line of credit amount from $200 to $250 annually. At June 30, 2018, there was no Remaining Expected Construction Completion amount due to the City. Capital Projects Commitment Date Participation Agreement - Construction of Regional Animal Care Shelter Anaheim Coves Northern Extention Phase II $ 3,239 2018 On April 12, 2016 the City Council approved a Participation Agreement Anaheim Resort Electric Line Extension 2,118 2018 between the County of Orange and City of Anaheim for the construction of a Cerritos Ave Sidewalk Gap Closure And Intersection 826 2019 new regional animal shelter at the former Tustin Air Base. Participants of Electric Reliability Improvement 5,498 2019 this Participation Agreement is among the County of Orange and fourteen Equipping Of Well No. 59 585 2018 Orange County Cities. The Shelter will be a County public works project Gene Autry Way Improvement East Of Westside Drive l'o State 6,560 2018 with a maximum construction amount of $35 million of which the County will Harbor 69-12Kv Substation Design/Build 16,294 2019 fund $7.2 million and contribute the land at no cost. The remaining $27.3 Heating Ventilation and Air Conditioning System 1,915 2018 million of the maximum construction amount will be divided proportionately KatellaSubstation To .Central Anaheim 12 Kv Line Extension 1,048 2018 among the contract cities based on the percentage of actual shelter usage Katella Water Main Replacement Project . 3,759 2018 over the last five years. The City's proportionate share is 28.28% or $7.7 La Palma Complex Reservoir And Pump Station 1,378 2018 million for an estimate annual payment of $798 payable quarterly over 1O Manzanita Skate Park And Logan Wells Skate Zone 675 2019 years starting with fiscal year 2017. Orange Avenue Rehabilitation 594 2018 During fiscal year 2018, the City has paid $828 with an estimated unpaid Platinum Triangle Electric Line Extension Project 11,905 2019 balance of $6,177. Rehabilitation And Expansion Of Lena in Water Treatment Plant 15,508 2020 Solar For Schools 4,614 2018 Litigation Street Improvement-La Palma Ave; Romneya Drive And Acacia 2,381 2018 A number of claims and suits are pending against the City for alleged Street Improvement-Lincoln Ave From State College To Sunkist 529 2018 damages to persons and/or property and for other alleged liabilities arising Underground District #50 - Euclid Street 12,261 2019 out of matters usually incident to the operation of a city such as Anaheim. Underground District #62 - Phase 2, Miraloma Ave 1,243 2018 Although the aggregate amount asserted for such lawsuits and claims is Underground District #63 - Lincoln / Rio Vista 3,051 2018 significant, in the opinion of City management, the City has strong defenses Underground District #64 - Orangewood Ave 4,840 2018 against such claims, and thus the ultimate loss, if any, relating to these Vehicle Acquisitions 1,665 2018 claims and suits not covered by insurance or reflected in the financial Total $ 102,486 statements, will not materially affect the financial position of the City. 91
CITY OF ANAHEIM NOTE 14 - SUBSEQUENT EVENTS: On August 28, 2018, the Anaheim City Council and Walt Disney Parks and Resorts U.S., Inc. mutually agreed to terminate two agreements that the parties had previously entered into: (1) the Agreement Concerning Entertainment Tax Reimbursement dated July 7, 2015 ("Entertainment Tax Agreement"), and (2) the Operating Covenant Agreement dated July 1, 2016 (collectively, "Agreements"). Under the Entertainment Tax Agreement, Disney was required to make a minimum $1 billion of capital improvements to receive an extended entertainment tax rebate period of 30 years, were the City to ever impose an entertainment tax. There was an option to extend the rebate period an additional 15 years were Disney to make another $500 million investment in the future. Under the Operating Covenant Agreement, Disney was required to construct, operate, and maintain a AAA Four Diamond Hotel for at least 20 years, in exchange for a 70% rebate on the transient occupancy tax that would be generated. On November 20, 2018, the Anaheim City Council approved a Termination Agreement to effect the City's election to exercise the Purchase Option under the Honda Center, located at 2695 E Katella Avenue, lease-in, lease-out transaction, or "LILO," The Termination Agreement effectuates the Purchase Option on January 2, 2019. All funds necessary to make the Purchase Option payments under the various agreements were deposited with various payment undertakers at the inception of the transaction and will be used to effectuate the Purchase Option without further cost to the City, other than minor legal expenses. Refer to note 13 of the notes to the financial statement of this report on pages 89-90 for further discussion of the lease agreements of the Honda Center. 92
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CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years (In thousands) 1 In thousands Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period: 2016-2017 2016-2017 2016-2017 2016-2017 2015-2016 2015-2016 2015-2016 2015-2016 TOTAL PENSION LIABILITY Service cost $ 23,736 $ 15,914 $ 6,600 $ 46,250 $ 19,841 $ 13,551 $ 5,572 $ 38,964 Interest on the Total Pension Liability 93,754 51,464 29,093 174,311 89,941 49,349 28,550 167,840 Changes of Assumptions 76,961 43,497 23,564 144,022 Difference Between Expected and Actual Experience 8,902 225 {3,028) 6,099 (28,822) 6,919 (2,504) (24,407) Benefit Payments, including Refunds of Employee Contributions (64,059) (34,195) (22,071) (120,325) (60,039) {32,039) (20,907) (112,985) Net Change in Total Pension Liability 139,294 76,905 34,158 250,357 20,921 37,780 10,711 69,412 Total Pension Liability - Beginning 1,245,540 685,188 394,090 2,324,818 1,224,619 647,408 383,379 2,255,406 Total Pension Liability - Ending (a) $ 1,384,834 $ 762,093 $ 428,248 $2,575,175 $ 1,245,540 $ 685,188 $ 394,090 $2,324,818 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 33,275 $ 19,615 $ 10,350 $ 63,240 $ 31,595 $ 17,527 $ 9,483 $ 58,605 Contributions - Employees 9,744 4,741 2,316 16,801 9,812 4,726 2,328 16,866 Net Investment Income 97,855 54,262 31,036 183,153 4,556 2,607 1,449 8,612 Benefit Payments, including Refunds of Employee Contributions (64,059) (34,195) (22,071) (120,325) (60,039) (32,039) (20,907) (112,985) Plan to Plan Resource Movement 2 2 (34) (34) Administrative Expense (1,305) (725) (416) (2,446) (548) (304) (177) (1,029) Net Change in Fiduciary Net Position 75,512 43,698 21,215 140,425 (14,658) (7,483) (7,824) (29,965) Plan Fiduciary Net Position - Beginning 883,735 491,528 281,742 1,657,005 898,393 499,011 289,566 1,686,970 Plan Fiduciary Net Position - Ending (b) 959,247 535,226 302,957 1,797,430 883,735 491,528 281,742 1,657,005 Plan Net Pension Liability - Ending (a) - (b) $ 425,587 $ 226,867 $ 125,291 $ 777,745 $ 361,805 $ 193,660 $ 112,348 $ 667,813 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 69.27% 70.23% 70.74% 69.80% 70.95% 71.74% 71.49% 71.27% Covered Payroll $ 120,653 $ 48,294 $ 22,688 $ 191,635 $ 111,398 $ 46,479 $ 21,600 $ 179,477 Plan Net Pension Liability as a Percentage of Covered Payroll 352.74% 469.76% 552.23% 405.85% 324.79% 416.66% 520.13% 372.09% 1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available Notes: Benefit Changes: The figures above do not include any liability impact that may have resulted-from plan changes which occurred after the June 30,.2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Cred (a.k.a. Golden Handshakes). Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) In 2014. amount reported were based on the 7.5% discount rate. 93 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years (In thousands) 1 (In thousands) (continued) Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period 2014-2015 2014-2015 2014-2015 2014-2015 2013-2014 2013-2014 2013-2014 2013-2014 TOTAL PENSION LIABILITY Service cost $ 20,334 $ 12,193 $ 5,419 $ 37,946 $ 21,254 $ 13,088 $ 5,961 $ 40,303 Interest on the Total Pension Liability 88,334 46,658 27,760 162,752 85,591 45,898 27,044 158,533 Changes of Assumptions (21,249) (11,546) (6,582) (39,377) Difference Between Expected and Actual Experience (16,296) (19,370) (4,549) (40,215) Benefit Payments, including Refunds of Employee Contributions (57,158) (30,517) (19,944) (107,619) (53,552) (28,845) (18,657) (101,054) Net Change in Total Pension Liability 13,965 (2,582) 2,104 13,487 53,293 30,141 14,348 97,782 Total Pension Liability - Beginning 1,210,654 649,990 381,275 2,241,919 1,157,361 619,849 366,927 2,144,137 Total Pension Liability - Ending (a) $ 1,224,619 $ 647,408 $ 383,379 $2,255,406 $ 1,210,654 $ 649,990 $ 381,275 $2,241,919 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 25,375 $ 14,663 $ 7,622 $ 47,660 $ 23,841 $ 13,505 $ 7,723 $ 45,069 Contributions - Employees 8,877 4,192 2,075 15,144 8,893 4,064 2,337 15,294 Net Investment Income 20,081 10,967 6,515 37,563 135,468 75,115 44,305 254,888 Benefit Payments, including Refunds of Employee Contributions (57,158) (30,517) (19,944) (107,619) (53,552) (28,845) (18,657) (101,054) Plan to Plan Resource Movement (5) 5 Administrative Expense (1,011) (562) (326) (1,899) Net Change in Fiduciary Net Position (3,841) (1,252) (4,058) (9,151) 114,650 63,839 35,708 214,197 Plan Fiduciary Net Position - Beginning 902,234 500,263 293,624 1,696,121 787,584 436,424 257,916 1,481,924 Plan Fiduciary Net Position - Ending (b) 898,393 499,011 289,566 1,686,970 902,234 500,263 293,624 1,696,121 Plan Net Pension Liability - Ending (a) - (b) $ 326,226 $ 148,397 $ 93,813 $ 568,436 $ 308,420 $ 149,727 $ 87,651 $ 545,798 73.36% 77.08% 75.53% 74.80% 74.52% 76.96% 77.01% 75.65% Plan Fiduciary Net Position as a percentage of the Total Pension Liability
$ 112,039 $ 41,800 $ 20,935 $ 174,774 $ 110,815 $ 43,204 $ 22,107 $ 176,126 Covered Payroll 291.17% 355.02% 448.12% 325.24% 278.32% 346.56% 396.49% 309.89%
Plan Net Pension Liability as a Percentage of Covered Payroll 1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available Notes: benefit Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary changes as well as any offers of Two Years Additional Service Cred (a.k.a. Golden Handshakes). rate from Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) In 2014. amount reported were based on the 7.5% discount rate. 94 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Pension Plan Contributions Last Ten Fiscal Years 1 (In thousands) Contributions Contributions in Relation to the as a Actuarially Contribution Percentage of Actuarially Covered Determined Deficiency Covered Fiscal Pension Determined Year Plan Contribution Contribution (Excess) Payroll 2 Payroll 2 2017-2018 Miscellaneous $ 35,932 $ (35,932) $ 121,096 29.67% Police Safety 20,410 (20,410) 51,770 39.42% Fire Safety 10,450 (10,450) 25,866 40.40% Total $ 66,792 $ (66,792) $ 198,732 33.61% 2016-2017 Miscellaneous $ 33,275 $ (33,275) $ 120,653 27.58% Police Safety 19,615 (19,615) 48,294 40.62% Fire Safety 10,350 (10,350) 22,688 45.62% Total $ 63,240 $ (63,240) $ 191,635 33.00% 2015-2016 Miscellaneous $ 31,141 $ (31,595) $ (454) $ 111,398 28.36% Police Safety 17,527 (17,527) 46,479 37.71% Fire Safety 9,483 (9,483) 21,600 43.90% Total $ 58,151 $ (58,605) $ (454) $ 179,477 32.65% 2014-2015 Miscellaneous $ 25,375 $ (25,375) $ 112,039 22.65% Police Safety 14,663 (14,663) 41,800 35.08% Fire Safety 7,622 (7,622) 20,935 36.41 % Total $ 47,660 $ (47,660) $ 174,774 27.27% 2013-2014 Miscellaneous $ 23,841 $ (23,841) $ 110,815 21.51% Police Safety 13,505 (13,505) 43,204 31.26% Fire Safety 7,723 (7,723) 22,107 34.93% Total $ 45,069 $ (45,069) $ 176,126 25.59% 1 Historical information is required only for measurement periods for which GASB 68 is applicable. Additional years will be presented as they become available. 2 Includes one year's payroll growth using 3.00% payroll assumption Notes to Schedule: The actuarial methods and assumptions used io set the actuarially determined contributions for Fiscal Year 2016-2017 were derived from the June 30, 2014 funding valuation reports. Actuarial Cost Method Entry Age Normal Amortization Method/Period For details, see June 30, 2014 Funding Valuation Report Asset Valuation Method Market Value of Assets Inflation 2.75% Salary Increases Varies by Entry Age and Service Payroll Growth 3% Investment Rate of Return 7.15% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Retirement Age The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. The probabilities of mortality are based on the 2014 Cal PERS Experience Study for the period from 1997 to 2011. Pre-retirement and Post-retirement Mortality mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. 95 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Changes in the Net Other Postemployment Benefits (OPEB) Liability and Related Ratios Last Ten Fiscal Years 1 (Amounts in Thousands) Measurement Period: 2016-2017 TOTAL OPEB LIABILITY Service cost $ 2,032 Interest on the Total OPES Liability 19,550 Difference Between Expected and Actual Experience (14,382) Changes of Assumptions 4,617 Benefit Payments, including Refunds of Employee Contributions (16,016) Net Change in Total OPEB Liability (4,199) Total OPEB Liability
- Beginning 274,520 Total OPEB Liability
- Ending (a) 270,321 PLAN FIDUCIARY NET POSITION Contributions - Employer 16,016 Net Investment Income 8,010 Benefit Payments, including Refunds of Employee Contributions (16,016)
Administrative Expense (41) Net Change in Fiduciary Net Position 7,969 Plan Fiduciary Net Position - Beginning 75,700 Plan Fiduciary Net Position - Ending (b) 83,669 Plan Net OPEB Liability - Ending (a) - (b) $ 186,652 Plan Fiduciary Net Position as a percentage of the Total OPEB Liability 30.95% Covered-Employee Payroll $ 203,473 Plan Net OPEB Liability as a Percentage of Covered Employee Payroll 91.73% 1 Historical information is required only for measurement periods for which GASB 75 is applicable. Additional years will be presented as they become available. 96 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Other Postemplom ent Benefits (OPEB) Plan Contributions Last Ten Fiscal Years 1 (Amounts in Thousands) Measurement Period 2017-2018 2016-2017 Actuarially Determined Contribution (ADC) $ 16,368 $ 15,937 Contribution in relation to ADC $ 16,368 $ 16,016 Contribution deficiency (excess) (79) Covered-Employee Payroll $ 209,435 $ 203,473 Contributions as a Percentage of Covered-employee Payroll 7.82% 7.87% 1 Historical information is required only for measurement periods for which GASB 75 is applicable. Additional years will be presented as they become available. Notes to Schedule: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2016-2017 were derived from the July 1, 2015 Actuarial Valuation Report. Methods and assumptions used to determine contributions: Actuarial Cost Method Entry Age Normal Cost, level percent of pay Amortization Method/Period Level percent of payroll over a closed 30-year period initially beginning July 1, 2007. Asset Valuation Method Market Value of Assets General Inflation Rate 2.75% Salary Increase 3.25% per year, used only to allocate the cost of benefits between service years. Long Term Return on Assets 7.28% Healthcare Trend 8.0% for year 2018, decreasing 0.5% per year to an ultimate rate of 5.0% for year 2025 & later. Retirement Age The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Mortality Improvement Bickmore Scale 2017 applied generationally 97 See accompanied independent auditors' report
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- SPECIAL REVENUE FUNDS are used :.to account for, revenues derived* from specific taxes or. other- earmarked revenue sources (9ther than fqr major* cap1hit
- projects) that are:res'tri'ded: by,law*or* a*dll'.linistrative action to*: expenditures for spe*cified 'purposes.
GAS TAX FUND *- Established to account for the constructi.on an*d .maintenance of the. road*, network *;syster:rl' of tfi'e r:ity, *Financing. is. proVlded:_prir:nar'Hy* by the City's share of' State and loca'I gasollne* taxes. Federal, State, and focal regulatio'hs, require that thede ;gasoline *taxes 'be used ,to fmprcive and rrl'aihta'ln*, streets, and includes programs*intended to improve' the ak quality* of the region. WORKFORCE DEVELOPMENT *FlJND*, Esfabllshed to ae::count for .the *City's involverri'ent in Federal, State, .. and local programs to'.-cr.eate: Jobs and ~provide*.thi:f' unetrfplbyecl-cl:mzens,in 'fne Anaheim ar.ea wlth,Job*trairiing,opportim'ities. . . COMMUNJTY .DEVElGPMENT *BLOCK GRANT FUND - Esfablished 'to account for finandng of the devel6pmenf: of*\lial:51e. ur.bari communities tQr.bugfi '.the: prov.ision of decent housing, suita.ble living environments ,and economic opportunity, princip_ally for ,pe~sons,of,low. and m9dera~e;lncome ... Fi,nanaing:,'is provitf~d by the* Feder;:il l'fousing.and Urban-Development (HUD) grants . .GRANTS FUND - Established to account for various .grants requi'ring segregated fund.accounting: Financing is provided b'{Federal, State, and l0ca'I age.nc:'i.es. ANAHEIM RESORT MAINTENANCE DISTRICT FUND - Esta'blished to account for the levy and .colle'ctioh of spe,cial assessniehts to pay the ,cost*-*o(:a*nnual -maintenane::e and'improvements'within the,distritt against thos*e parcels*that specifically beriefit<froni 'the enhanced mainterfan'Ge*ariddm'prnVement ..
- ANAHEIM TOURISM IMPROVEMENT DISTRICT Fl:.IND - Established to account for the collection of a special aii'sessrii'eht suppor'titig marketing; pfomotion arid transit :project costs in support oftne *city's tourism .and coriventior.\'ln'dustry.
.N'ARCG>I:IC..A..SSEJ FbRFflT.URE FlJND* - Es~a.blislied* to *accoqnt ,for funds r.ec;elv.ed '.fr.om Peper.al .ahd State* ~gencies tncl't are. de,rivecl. Jr,ol"('l mc,,r;iies. a'frd prop;ef~fy
- seized'oy'the:Po !'ice Deparitment .in.dnig r.elated.in ciclents. ':rhesE! 'fu n9s are :used*to: supplement exfs~ng ;resources* oflhe tity'.s. law :edforcement,,act'ivities:
LONG R:A.NGE PR0PERJ.¥ :MANAGEMENT PLAN FUND*- Established, to actount '.for. future development and prop*erty*man*agemenLactivitle s cif'the,0assEits)hat* w.er,e tran:;ferr,ed ,fro*m*the~St1cc;:essor,Agenc.y :to.. the:F.orm~r.A..nah'eim *RedevelopmentAgency,\s.a*pproYe:d Lor:ig,Range*Pro.~er.tv: {Vial;iagemenl; Plan*.. DEBT, SERV.ICE'F.UNDS;a re *used* to* accmu rit:for, *the aecu mu latlon of. resou rtes;an'd-th*e ,J,>ciyni ent. ofcpri iidpal: a nd.intere.st,on _ge n*era Huebt :of.the 'Glty ,cfnd*re'latedi entities. MUNICIPAL FACILITIES FUND - Established to* accumulate resour.ces for payment-of the prihcipal .. a6d interest 'on the;lease. revenue bohds ftilr"the Eire: Fa'eilities .and* 0Jher'vari6t1s acquisitions and capital impr"o.vements.
- ANAHEIIWI RE$0RT IMPROVEMENTS ~UNO' - Esta'b'lished to ati:Lih1l:ilate*resources* for 'paV,ment of Jhe p*dnclpal .aJ:,clrnte'r,esf orj 'the: leas*e reve"n'u:~;Jiqi:ld~ tor th*e Anah*eim Resort Improvements.. * * . *
- CAP.ITAL PROJECTS FONDS are *used to*accpunt for resources* usec{for the acquisjtibn and:constr.uctjon:of:capitaf.ass e'tsrby*the City" exceP.t:J9nhQse nhanc~d:
- by prngrietar.y-,f(:mds ' ' ' .
STRffl' CONSTRUCTION FUND: *,Established ,to account *for transportation improvement cbnstr-uction in. *the. City'.:s*- righFof:way. *Fihancitig:_'is: proviae_d: pr:irnarily* by* Feder.al, State*and lotal:grant:s,. a:nd:Measure.1\'/1!2 allocations-by fhe County-of Orange.
- TRANSPORTAT>ION* *IMPROVEMENT PROJEC:T HJND - Established to *account .for transportation improvement projects. ih th'e: City; .F.lt:'laboing,_.,ls pflDVide'd ,by.*.
*Federal, State. and local :a*gencies. .
OEVElGPMENT IMPACT PROJECTS FUND*.- Established to account for infrastructure improvements, primarily in the:*Pl:atirium.l)'iangle atea; whii:h pr0Yiae-::~:ey'elo'p':,, merft oppor:tunities for.. hJgh density, .mixed use:,. office; restaur:ant, ana residential projects. Financing is pr:ovitled, prrfmar;ily* by* .developme.nt 'i~pi:fct,*f~-~~.. , COMM'lJNJf.Y SERVICES FA'CILIT,IES. FUND- Established to *accou.nt for the d~velopment of new ,par.k sites; pl:aygrounds .and library fa,e::illties: Fi.r;ianc,i('lg i~; '.Provid~d by* Federal and .State grant pr:ograms, in conjun'ction with fees charged' to resid'ef)t'ial:and commercial developers. l\'/luch *of thl.s reven,ue :1s.,u5ed.
- to support the capital construction,ofparks*al'ld otl;)e*r recreationalfacilities.tnr.oughou t-the City. ,,
STORM DRAIN CONSTRUCTION FUND - Esta'blished to :account for *the- City's storm drain construction. Financing ,is provided 'by draihqge, assess'rnetit.-fe.es, diarged*to residentiaLan*d *commercial developers. OTHER CAPITAL IMPRO\ZEMENTS EWND - Established to account.for various capital projects**as determined by the *City Gdu'iicil. Curren~ly,"finahcing~forf,h¢se: projects is provided by'bond proceeds arid subsldies*from the General Fund, . MELLO~ROOS PROJECTS FUNil-*Establishe*d. to account for roqd, s.ewer .and water improvementsJn the commu.nity facility: districts. Fir,:iand_M:g is provideg by*:t~e
- sale*of spepial)ax hon.ds, that *are secar.ed by an,d _payable from the pi;,oceeds df-an:annual'sp~cial-assessment on,the,propertieswitl:iin the:disff.ict:
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Governmental Funds by Fund Type June 30, 2018 (In thousands) Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds* ASSETS Cash and cash equivalents $ 10,417 $ 344 $ 13,174 $ 23,935 Investments 36,676 1,212 46,399 84,287 Accounts receivable, net 1,702 1,702 Accrued interest receivable 160 42 181 383 Due from other funds 12,060 12,060 Due from other governments 5,842 15,592 21,434 Land held for resale 22,982 22,982 Prepaid and other assets 2 9,089 9,091 Restricted cash and cash equivalents 3,067 24,604 16,155 43,826 Restricted investments ' 123,852 29,986 153,838 Notes receivable, net 24,031 24,031 Due from Successor Agency 5,570 4,968 10,538 Total assets $ 110,449 $ 150,054 $ 147,604 $ 408,107 . LIABILITIES Accounts payable $ 5,688 $ 2 $ 7,391 $ 13,081 Wages payable 306 46 352 Deposits 368 1,194 1,562 Due to other funds 306 14,210 14,516 Due to other governments 1,500 1,500 Unearned revenues 22 22 Total liabilities 8,190 2 22,841 31,033 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 1,519 12,536 14,055 Unavailable resources - long-term notes receivable 24,031 24,031 Unavailable resources - due from Successor Agency 5,570 4,968 10,538 Total deferred inflows of resources 31,120 17,504 48,624 FUND BALANCES Nonspendable: Prepaid and other assets 2 9,089 9,091 Restricted: Anaheim Resort maintenance and improvement 5,286 5,286 Capital projects 7,664 7,664 Community & Economic Development projects 23,301 23,301 Debt service 148,492 148,492 Development impact projects 92,302 92,302 Grant purposes 4,360 4,360 Homebuyer assistance program 6,958 6,958 Streets, roads and transportation improvement projects 31,671 31,671 Committed Capital projects 4,063 4,063 Assigned Debt service 1,560 1,560 Capital Projects 5,237 5,237. Unassigned (439) (11,096) (11,535) Total fund balances 71,139 150,052 107,259 328,450 Total liabilities, deferred inflows of resources, and fund balances $ 110,449 $ 150,054 $ 147,604 $ 408,107 99 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, 2018 (In thousands) Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Revenues: Licenses, fees and permits $ 66 $ 13,562 $ 13,628 Intergovernmental revenues 31,286 11,509 42,795 Charges for services 23,430 14 23,444 Use of money and property 6,119 $ 322 1,876 8,317 Other 21 3 24 Total revenues 60,922 322 26,964 88,208 Expenditures: Current: City Attorney 120 120 City Clerk 44 44 Finance 31 22 53 Police 6,377 1,363 7,740 Fire & Rescue 460 1,053 1,513 Community & Economic Development 10,023 37 10,060 Planning & Building 1,426 62 1,488 Public Works 11,827 2,295 14,122 Community Services 389 1,522 1,911 Convention, Sports & Entertainment 13,890 13,890 Capital outlay 11,047 27,139 38,186 Debt service: Principal retirement 1,219 12,168 1,362 14,749 Interest charges 496 27,485 431 28,412 Total expenditures 57,274 39,684 35,330 132,288 Excess (deficiency) of revenues over (under) expenditures 3,648 (39,362) (8,366) (44,080) Other financing sources (uses): Transfers in 368 61,833 5,520 67,721 Transfers out (4,308) (2,292) (6,600) Issuance of loan payable 2,250 2,250 Total other financing sources (1,690) 61,833 3,228 63,371 Net change in fund balances 1,958 22,471 (5,138) 19,291 Fund balances at beginning of year 69,181 127,581 112,397 309,159 Fund balances at end of year $ 71,139 $ 150,052 $ 107,259 $ 328,450 100 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2018 (In thousands) Anaheim Anaheim Long Range Community Resort Tourism Narcotic Property Gas Workforce Development Maintenance Improvement Asset Management Tax Development Block Grant Grants District District Forfeiture Plan Total ASSETS Cash and cash equivalents $ 3,593 $ 3 $ 1,725 $ 1,298 $ 3,061 $ 158 $ 579 $ 10,417 Investments 12,655 6,075 4,572 10,779 556 2,039 36,676 Accounts receivable, net 1,669 33 1,702 Accrued interest receivable 59 22 19 43 6 11 160 Notes receivable, net 3,022 21,009 24,031 Due from other governments 2,467 $ 692 427 2,251 5 5,842 Land for resale 22,982 22,982 Prepaid and other assets 1 2 Restricted cash and cash equivalents 3,067 3,067 Due from Successor Agency 4,686 884 5,570 Total assets $ 18,775 $ 692 $ 8,138 $ 31,082 $ 5,894 $ 15,552 $ 3,787 $ 26,529 $ 110,449 LIABILITIES Accounts payable $ 439 $ 360 $ 315 $ 1,367 $ 601 $ 2,139 $ 49 $ 418 $ 5,688 Wages payable 62 23 40 74 7 96 4 306 Deposits 2 366 368 Due to other funds 306 306 Due to other governments 1,500 1,500 Unearned revenues 22 22 Total liabilities 501 689 357 1,441 608 2,139 145 2,310 8,190 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 15 30 1,440 33 1,519 Unavailable resources - long-term notes receivable 3,022 21,009 24,031 Unavailable resources - due from Successor Agency 4,686 884 5,570 Total deferred inflows of resources 15 30 7,709 22,449 917 31,120 FUND BALANCES Nonspendable: Prepaid and other assets 2 Restricted: Anaheim Resort m*aintenance and improvement 5,286 5,286 Community & Economic Development projects 23,301 23,301 Grant purposes 72 646 3,642 4,360 Homebuyer assistance program 6,958 6,958 Streets, roads and transportation improvement projects 18,258 13,413 31,671 Unassigned (27) (412) (439) Total fund balances (deficit) 18,259 (27) 72 7,192 5,286 13,413 3,642 23,302 71,139 Total liabilities, deferred inflows of resources, and fund balance $ 18,775 $ 692 $ 8,138 $ 31,082 $ 5,894 $ 15,552 $ 3,787 $ 26,529 $ 110,449 101 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Nonmajor Special Revenue Funds June 30, 2018 (In thousands) Anaheim Anaheim Long Range Community Resort Tourism Narcotic Property Gas Workforce Development Maintenance Improvement Asset Management Tax Development Block Grant Grants District District Forfeiture Plan Total Revenues: Licenses, fees and permits $ 18 $ 48 $ 66 Intergovernmental revenues 15,982 $ 3,344 $ 3,983 6,587 $ 1,390 31,286 Charges for services 139 $ 4,584 $ 18,707 23,430 Use of money and property 91 2,277 1,700 27 29 37 $ 1,958 6,119 Other 8 12 1 21 Total revenues 16,238 3,356 6,260 8,335 4,612 18,736 1,427 1,958 60,922 Expenditures: Current: City Attorney 120 120 Police 3,698 2,679 6,377 Fire & Rescue 31 429 460 Community & Economic Development 3,310 1,207 2,450 3,056 10,023 Planning & Building 1,426 1,426 Public Works 5,560 5,207 1,060 11,827 Community Services 346 43 389 Convention, Sports & Entertainment 13,890 13,890 Capital outlay 5,238 5,005 68 219 149 278 90 11,047 Debt service: Principal retirement 250 802 167 1,219 Interest charges 457 39 496 Total expenditures 11,048 3,310 9,394 6,688 5,426 15,099 3,163 3,146 57,274 Excess (deficiency) of revenues over (1,736) (1,188) 3,648 (under) expenditures 5,190 46 (3,134) 1,647 (814) 3,637 Other financing sources (uses): 168 200 368 Transfers in Transfers out (3,618) (11) (679) (4,308) 2,250 2,250 Issuance of loan payable (3,450) 2,239 200 (679) (1,690) Total other financing sources (uses) 1,740 46 (895) 1,647 (614) 2,958 (1,736) (1,188) 1,958 Net change in fund balances 16,519 (73) 967 5,545 5,900 10,455 5,378 24,490 69,181 Fund balances at beginning of year
$ 18,259 $ (27) $ 72 $ 7,192 $ 5,286 $ 13,413 $ 3,642 $ 23,302 $ 71,139 Fund balances at end of year 102 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Year Ended June 30, 2018 (In thousands) Gas Tax 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 $ 22 $ 18 $ (4) Intergovernmental revenues 15,637 15,982 345 $ 3,252 $ 3,344 $ 92 Charges for services 192 139 (53) Use of money and property 10 91 81 Other 8 8 12 12 Total revenues 15,861 16,238 377 3,252 3,356 104 Expenditures: City Attorney Police Fire & Rescue Community & Economic Development 3,529 3,310 (219) Planning & Building Public Works 28,408 11,048 (17,360) Community Services Convention, Sports & Entertainment Total expenditures 28,408 11,048 (17,360) 3,529 3,310 (219) Excess (deficiency) of revenues over (under) expenditures (12,547) 5,190 17,737 (277) 46 323 Other financing sources (uses): Transfers in 66 168 102 Transfers out (3,500) (3,618) (118) Total other financing sources (uses) (3,434) (3,450) (16) Net change in fund balances (15,981) 1,740 17,721 (277) 46 323 Fund balances at beginning of year 16,519 16,519 (73) (73) Fund balance at end of year $ 538 $ 18,259 $ 17,721 $ (350) $ (27) $ 323 103 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary B_asis Actual - All Nonmajor Special Revenue Funds Year Ended June 30, 2018 (In thousands) (continued) Community Development Block Grant Grants Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues: Licenses, fees and permits $ 30 $ 48 $ 18 Intergovernmental revenues $ 5,037 $ 3,983 $ (1,054) 16,353 6,587 (9,766) Charges for services Use of money and property 2,143 2,277 134 757 1,700 943 Other Total revenues 7,180 6,260 (920) 17,140 8,335 (8,805) Expenditures: City Attorney 120 120 Police 8,078 3,720 (4,358) Fire & Rescue 49 31 (18) 1,410 444 (966) Community & Economic Development 9,293 5,190 (4,103) 7,505 2,450 (5,055) Planning & Building 1,466 1,426 (40) Public Works 1,384 377 (1,007) 259 74 (185) Community Services Convention, Sports & Entertainment Total expenditures 12,312 7,144 (5,168) 17,252 6,688 (10,564) Excess (deficiency) of revenues over (under) expenditures (5,132) (884) 4,248 (112) 1,647 1,759 Other financing sources (uses): Transfers in Transfers out (11) (11) Total other financing sources (uses) (11) (11) (5,132) (895) 4,237 (112) 1,647 1,759 Net change in fund balances 967 967 5,545 5,545 Fund balances at beginning of year
$ (4,165) 72 $ 4,237 $ 5,433 $ 7,192 $ 1,759 Fund balance at end of year Adjustment to reconcile to GAAP:
Issuance of loan payable 2,250 Land acquisition from loan proceeds (2,250) Ending fund balance - GAAP basis $ 72 104 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual -All Nonmajor Special Revenue Funds Year Ended June 30, 2018 (In thousands) (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 $ 4,602 $ 4,584 $ (18) $ 18,829 $ 18,707 $ (122) Use of money and property 53 27 (26) 57 29 (28) Other 4 (3) Total revenues 4,659 4,612 (47) 18,886 18,736 (150) Expenditures: City Attorney Police Fire & Rescue Community & Economic Development Planning & Building Public Works 6,568 5,426 (1,142) 2,217 1,209 (1,008) Community Services Convention, Sports & Entertainment 13,900 13,890 (10) Total expenditures 6,568 5,426 (1,142) 16,117 15,099 (1,018) Excess (deficiency) of revenues over (under) expenditures (1,909) (814) 1,095 2,769 3,637 868 Other financing sources (uses): Transfers in 200 200 (188) (679) (491) Transfers out Total other financing sources (uses) 200 200 (188) (679) (491) Net change in fund balances (1,709) (614) 1,095 2,581 2,958 377 5,900 5,900 10,455 10,455 Fund balances at beginning of year
$ 4,191 $ 5,286 $ 1,095 $ 13,036 $ 13,413 $ 377 Fund balance at end of year 105 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual -All Nonmajor Special Revenue Funds Year Ended June 30, 2018 (In thousands) Narcotic Asset Forfeiture Long Range Property Management Plan 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 .$ 1,678 $ 1,390 $ (288) Charges for services Use of money and property 22 37 15 $ 14,447 $ 1,958 $ (12,489) Other Total revenues 1,700 1,427 (273) 14,447 1,958 (12,489) Expenditures: City Attorney Police 3,166 3,163 (3) Fire & Rescue Community & Economic Development 7,053 3,950 (3,103) Planning & Building Public Works Community Services Convention, Sports & Entertainment Total expenditures 3,166 3,163 (3) 7,053 3,950 (3,103) Excess (deficiency) of revenues over (under) expenditures (1,466) (1,736) (270) 7,394 (1,992) (9,386) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance (deficits) (1,466) (1,736) (270) 7,394 (1,992) (9,386) Fund balances (deficits) at beginning of year 5,378 5,378 24,490 24,490
$ 3,912 $ 3,642 $ (270) $ 31,884 22,498 $ (9,386)
Fund balances at end of year Adjustment to reconcile to GAAP: 804 Purchase of land held for resale
$ 23,302 Ending fund balance - GAAP basis 106 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Debt Service Funds June 30, 2018 (In thousands) Anaheim Municipal Resort Facilities Improvements Total ASSETS Cash and cash equivalents $ 344 $ 344 Investments 1,212 1,212 Accrued interest receivable 12 $ 30 42 Restricted cash and cash equivalents 522 24,082 24,604 Restricted investments 692 123,160 123,852 Total assets $ 2,782 $ 147,272 $ 150,054 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2 $ 2 Total liabilities 2 2 Fund balances: Restricted for debt service $ 1,222 147,270 148,492 Assigned for debt service 1,560 1,560 Total fund balances 2,782 147,270 150,052 Total liabilities and fund balances $ 2,782 $ 147,272 $ 150,054 107 See accompanied indepe_ndent auditors' report
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year Ended June 30, 2018 on thousands) Anaheim Municipal Resort Facilities Improvements Total Revenues: Use of money and property $ 119 $ 203 $ 322 Total revenues 119 203 322 Expenditures: Current: Finance 30 31 Debt service: Principal retirement 501 11,667 12,168 Interest charges 1,153 26,332 27,485 Total expenditures 1,655 38,029 39,684 (1,536) (37,826) (39,362) Deficiency of revenues under expenditures Other financing sources: 1,652 60,181 61,833 transfers in Transfers out 1,652 60,181 61,833 Total other financing sources 116 22,355 22,471 Net change in fund balances 2,666 124,915 127,581 Fund balances at beginning of year
$ 2,782 $ 147,270 $ 150,052 Fund balances at end of year 108 See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Debt Service Funds Year Ended June 30, 2018 (In thousands) Municipal Facilities Anaheim Resort Improvements Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues: Property taxes Intergovernmental revenues Use of money and property $ 119 $ 119 $ $ 203 $ 202 Total revenues 119 119 203 202 Expenditures: Finance $ 1,088 1,088 38,083 38,029 (54) Public Works 567 567 Total expenditures 1,655 1,655 38,083 38,029 (54) Excess (deficiency) of revenues over (under) expenditures (1,655) (1,536) 119 (38,082) (37,826) 256 other financing sources: Transfers in 1,088 1,652 564 59,876 60,181 305 Transfers out Total other financing sources 1,088 1,652 564 59,876 60,181 305 (567) 116 683 21,794 22,355 561 Net change in fund balances Fund balances at beginning of year 2,666 2,666 124,915 124;915 Fund balances at end of year $ 2,099 $ 2,782 $ 683 $ 146,709 $ 147,270 $ 561 109 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Capital Projects Funds* June 30, 2018 (In thousands) Transportation Development Community Storm Street Improvement Impact Services Drain other Capital Mello-Roos Construction Projects Projects Facilities Construction Improvements Projects Total ASSETS Cash and cash equivalents $ 109 $ 34 $ 7,661 $ 1,164 $ 237 $ 1,895 $ 2,074 $ 13,174 Investments 384 121 26,983 4,097 837 6,674 7,303 46,399 Accrued interest receivable 1 93 17 14 29 27 181 Due from other funds 4,060 4,000 4,000 12,060 Due from other governments 12,900 241 602 1,843 6 15,592 Prepaid and other assets 7,344 13 1,732 9,089 Restricted cash and cash equivalents 4,624 11,531 16,155 Restricted investment
- 29,986 29,986 Due from the Successor Agency 4,968 4,968 Total assets $ 20,737 $ 397 $ 39,399 $ 5,278 $ 5,088 $ 24,046 $ 52,659 $ 147,604 LIABILITIES Accounts payable $ 1,345 $ 323 $ 1,249 $ 325 $ 2,276 $ 1,545 $ 328 $ 7,391 Wages payable 20 1 3 2 1 2 17 46 Deposits 1,194 1,194 Due to other funds 12,060 2,150 14,210 Total liabilities 13,425 324 1,252 2,477 3,471 1,547 345 22,841 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 10,967 170 602 797 12,536 Unavailable resources - due from Successor Agency 4,968 4,968 Total deferred inflows of resources 10,967 170 602 5,765 17,504 FUND BALANCES Nonspendable:
Prepaid and other assets 7,344 13 1,732 9,0~9 Restricted: Capital projects 7,664 7,664 Development impact projects 37,545 2,558 1,617 50,582 92,302 Committed: Capital projects 4,063 4,063 Assigned: Capital projects 243 4,994 5,237 Unassigned (10,999) (97) (11,096) Total fund balances (deficits) (3,655) (97) 37,545 2,801 1,617 16,734 52,314 107,259 Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 20,737 $ 397 $ 39,399 $ 5,278 $ 5,088 $ 24,046 $ 52,659 $ 147,604 110 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) Nonmajor Capital Projects Funds June 30, 2018 (In thousands) Transportation Development Community Storm Street Improvement Impact Services Drain Other Capital Mello-Roos Construction Projects Projects Facilities Construction Improvement Projects Total Revenues: Licenses, fees and permits $ 12,801 $ 761 $ 13,562 Intergovernmental revenues $ 6,992 $ 2,570 670 $ 1,277 11,509 Charges for services 14 14 Use of money and property (34) (17) 191 93 $ 61 1,155 $ 427 1,876 Other 2 1 3 Total revenues 6,972 2,553 12,994 1,524 61 2,433 427 26,964 Expenditures: Current: City Clerk 44 44 Finance 22 22 Police 17 1,346 1,363 Fire & Rescue 3 1,050 1,053 Community & Economic Development 37 37 Planning & Building 62 62 Public Works 776 346 85 1,069 19 2,295 Community Services 263 332 927 1,522 Capital outlay 8,035 140 10,363 1,378 5,301 1,921 27, 13Q Debt service: Principal retirement 1,362 1,362 Interest charges 431 431 Total expenditures 8,811 486 10,646 1,710 86 11,651 1,940 35,330 Excess (deficiency) of revenues over (under) expenditures (1,839) 2,067 2,348 (186) (25) (9,218) (1,513) (8,366) Other financing sources (uses): Transfers in 549 1 4,930 40 5,520 Transfers out (104) (38) (2,150) (2,292) Total other financing sources (uses) 549 (103) (38) (2,150) 4,930 40 3,228 Net change in fund balances (1,290) 1,964 2,310 (2,336) (25) (4,288) (1,473) (5,138) Fund balances (deficits) at beginning of year (2,365) (2,061) 35,235 5,137 1,642 21,022 53,787 112,397 Fund balances (deficits) at end of year $ (3,655) $ .(97) $ 37,545 $ 2,801 $ 1,617 $ 16,734 $ 52,314 $ 107,259 111
- See accompanied independent auditors' report
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual - All Capital Projects Funds Year Ended June 30, 2018 (In thousands) (continued) Street Construction Transportation Improvement 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 $ 49,435 $ 6,992 $ (42,443) $ 4,973 $ 2,570 $ {2,403) Charges for services 14 14 Use of money and property (34) (34) (17) (17) Contribution from property owners Other Total revenues 49,435 6,972 (42,463) 4,973 2,553 (2,420) Expenditures: Police Fire & Rescue Community & Economic Development Planning & Building Public Works 40,970 8,811 (32,159) 2,163 486 (1,677) Community Services Total expenditures 40,970 8,811 (32,159) 2,163 486 (1,677) Excess (efficiency) of revenues over (under) expenditures 8,465 (1,839) (10,304) 2,810 2,067 (743) Other financing sources (uses): 549 549 1 1 Transfers in (104) (104) Transfers out 549 549 (103) (103) Total other financing sources 8,465 (1,290) (9,755) 2,810 1,964 (846) Net change in fund balances (2,365) (2,365) (2,061) (2,061) Fund balances at beginning of year
$ 6,100 $ (3,655) $ (9,755) $ 749 $ (97) $ (846)
Fund balances at end of year 112 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual - All Capital Projects Funds Year Ended June 30, 2018 (In thousands) (continued) Development Impact Projects 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 $ 2,050 $ 12,801 $ 10,751 $ 500 $ 761 $ 261 Intergovernmental revenues 1,734 (1,734) 737 670 (67) Charges for services Use of money and property 15 191 176 2 93 91 Contribution from property owners Other 2 2 Total revenues 3,799 12,994 9,195 1,239 1,524 285 Expenditures: Police 610 124 (486) Fire & Rescue 5,058 3 (5,055) Community & Economic Development Planning & Building Public Works 2,832 247 (2,585) Community Services 12,972 10,272 (2,700) 5,686 1,710 (3,976) Total expenditures 21,472 10,646 (10,826) 5,686 1,710 (3,976) Excess (deficiency) of revenues over (under) expenditures (17,673) 2,348 20,021 (4,447) (186) 4,261 Other financing sources (uses): Transfers in Transfers out (38) (38) Total other financing sources (38) (38) Net change in fund balances (17,673) 2,310 19,983 (4,447) (186) 4,261 Fund balances at beginning of year 35,235 35,235 5,137 5,137 Fund balances at end of year $ 17,562 $ 37,545 $ 19,983 $ 690 4,951 $ 4,261 Adjustment to reconcile to GAAP: Provided park fee credits for future housing projects (2,150) Ending fund balance - GAAP basis $ 2,801 113 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual -All Capital Projects Funds Year Ended June 30, 2018 (In thousands) (continued) Storm Drain Construction Other Capital Improvements Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues: Licenses, fees and permits $ 30 $ (30) Intergovernmental revenues $ 2,805 $ 1,277 $ (1,528) Charges for services Use of money and property
$ 61 61 990 1,155 165 Contribution from property owners other 1 Total revenues 30 61 31 3,795 2,433 (1,362)
Expenditures: 200 194 (6) City Clerk Finance 117 117 Police 1,910 1,863 (47) 10,308 5,934 (4,374) Fire & Rescue 3,805 1,069 (2,736) Community & Economic Development 118 117 (1) Planning & Building Public Works 210 86 (124) 3,620 1,279 (2,341) 1,918 1,078 (840) Community Services 210 86 (124) 21,996 11,651 (10,345) Total expenditures (180) (25) 155 (18,201) (9,218) 8,983 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 1,053 4,930 3,877 Transfers in Transfers out 1,053 4,930 3,877 Total other financing sources (180) (25) 155 (17,148) (4,288) 12,860 Net change in fund balances 1,642 1,642 21,022 21,022 Fund balances at beginning of year
$ 1,462 1,617 155 $ 3,874 $ 16,734 $ 12,860 Fund balances at end of year 114 (continued)
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Budget and Budgetary Basis Actual -All Capital Projects Funds Year Ended June 30, 2018 (In thousands) (continued) Mello-Roos Projects Final Budgeted Actual Variance with Amounts Amounts Final Budget Revenues: Licenses, fees and permits Intergovernmental revenues Charges for services
$ 427 $ 427 Use of money and property Contribution from property owners Other Total revenues 427 427 Expenditures:
Police Fire & Rescue Community & Economic Development Planning & Building
$ 45,349 1,940 (43,409)
Public Works Community Services 45,349 1,940 (43,409) Total expenditures (45,349) (1,513) 43,836 Excess of deficiency of revenues over (under) expenditures Other financing sources (uses): 40 40 Transfers in Transfers out 40 40 Total other financing sources (45,349) (1,473) 43,876 Net change in fund balances 53,787 53,787 Fund balances at beginning of year
$ 8,438 $ 52,314 $ 43,876 Fund balances at end of year 115 The accompanying notes are an integral part of these financial statements.
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.CITY OF ANAHEIM Combining Statement of Net Position Internal Service Funds June 30, 2018 (In thousands)
General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total ASSETS Current assets:
$ 18,629 $ 950 $ 580 $ 86 $ 20,245 Cash and cash equivalents 65,613 3,342 2,043 305 71,303 Investments 526 526 Restricted cash and cash equivalent 2,205 16 2,221 Accounts receivable, net 242 11 254 Accrued interest receivable 9 189 198 lnterfund receivable 994 994 Inventories 58 1,357 1,896 3,311 Prepaid and other assets 86,756 6,859 5,046 391 99,052 Total current assets Noncurrent assets:
904 904 Restricted cash and cash equivalent 2,301 2,301 Accounts receivable, less current portion 53 53 lnterfund receivable, less current portion Capital assets: 3,230 6,263 9,493 Buildings, structures and improvements 93 44,615 27,212 3,143 75,063 Machinery and equipment 504 2,199 2,703 Construction in progress (78) (32,309) (21,477) (5,220) (59,084) Less accumulated depreciation 15 16,040 7,934 4,186 28,175 Capital assets, net 2,369 16,040 8,838 4,186 31,433 Total noncurrent assets 89,125 22,899 13,884 4,577 130,485 Total assets DEFERRED OUTFLOW OF RESOUCES 275 342 202 304 1,123 Deferred OP EB related items 2,145 2,362 4,627 2,038 11,172 Deferred pension related items 2,420 2,704 4,829 2,342 12,295 Total deferred outflow of resources LIABILITIES Current liabilities: 1,418 695 1,623 1,250 4,986 Accounts payable 4,171 61 48 69 4,349 Wages payable 65 65 Interest payable 231 231 Due to other Funds 11,986 11,986 Compensated absences 11,670 11,670 Self-insurance liability 2,100 10 2,090 Long-term liabilities 2,555 Unearned revenues 2,555 31,800 766 3,826 1,550 37,942 Total current liabilities Noncurrent liabilities: 182 182 Due to other Funds, less current portion 8,488 Compensated absences, less current portion 8,488 42,642 42,642 Self-insurance liability, less current portion 2,904 85 2,819 Long-term liabilities, less current portion 2,666 10,468 2,640 3,333 1,829 Net other postemployment benefits (OPEB) liabilities 7,265 31,202 8,573 8,561 6,803 Net pension liability 11,451 10,113 95,886 62,343 11,979 Total noncurrent liabilities 11,663 133,828 94,143 12,74~ 15,277 Total liabilities DEFERRED INFLOW OF RESOURCES 136 198 777 Deferred OP EB related items 196 247 223 512 205 164 1,104 Deferred pension related items 362 1,881 Total deferred inflow of resources 419 759 341 NET POSITION 3,929 4,186 24,075 15 15,945 Net investment in capital assets (834) (9,292) (17,004) (3,032) (3,846) Unrestricted $ 3,095 $ (5,106) $ 7,071
$ (3,017) $ 12,099 Total net position 117 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, 2018 (In thousands) General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total Operating revenues: Charges for services $ 98,078 $ 12,892 $ 22,987 $ 12,459 $ 146,416 Other 25 21 70 116 Total operating revenues 98,103 12,913 22,987 12,529 146,532 Operating expenses: Salaries and wages 4,256 4,570 4,925 4,294 18,045 Maintenance and operations 3,053 5,432 16,541 8,947 33,973 Insurance premiums and claims 19,229 19,229 Compensated absences and other benefits 67,015 67,015 Depreciation 1 2,410 3,257 359 6,027 Total operating expenses 93,554 12,412 24,723 13,600 144,289 Operating income (loss) 4,549 501 (1,736) (1,071) 2,243 Nonoperating income (expenses): Intergovernmental revenues Investment income 28 14 (31) (3) 8 Interest expense (2) (167) (169) Gain from disposal of capital assets 100 100 Total nonoperating income (loss) 28 112 (198) (3) (61) 4,577 613 (1,934) (1,074) 2,182 Income (Loss) before transfer Transfer in Transfers out 4,577 613 (1,934) (1,074) 2,182 Change in net position (7,594) 11,486 5,029 (4,032) 4,889 Net position at beginning of year, as adjusted
$ (3,017) $ 12,099 $ 3,095 $ (5,106) $ 7,071 Net position at end of year 118 See accompanied independent auditors' report
CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2018 (In thousands) General Information Benefits and Municipal and Motorized Communication Facilities Insurance Equipment Services Maintenance Total Cash flows from operating activities: Receipts from interfund services provided $ 98,078 $ 12,892 $ 22,987 $ 12,459 $ 146,416 Payments to suppliers (1,159) (5,342) (15,989) (8,361) (30,851) Payments for salaries and wages to employees (4,608) (4,313) (3,404) (4,201) (16,526) Payments for interfund services used (1,902) (649) (1,015) (999) (4,565) Payments for insurance premiums and claims (15,681) (15,681) Payments for compensated absences and other benefits (68,568) (68,568) Other receipts 61 10 70 141 Net cash provided by (used for) operating activities 6,221 2,598 2,579 (1,032) 10,366 Cash flows from noncapital financing activities: 13 825 189 1,027 Receipt of interfund balances (40) . (189) (103) (722) (1,054) Payment of interfund balances Net cash provided by (used for) noncapital financing activities (27) 636 (103) (533) (27) Cash flows from capital and related financing activities: 133 133 Proceeds from sale of capital assets 380 380 Receipt of capital grant (3,595) (369) (575) (4,539) Capital purchases (10) (2,600) (2,610) Principal payments on long-term debt (2) (196) (198) Interest payments 231 231 Receipt of interfund loan for capital purpose (7) (7) lnterfund payment for capital purpose (3,094) (3,165) (351) (6,610) Net cash used for capital and related financing activities Cash flows from investing activities: (31,133) (1,585) (969) (143) (33,830) Purchase of investment securities 25,369 1,421 1,044 1,630 29,464 Proceeds from sale and maturity of investment securities 763 49 812 Interest received (6) (1) (7) Interest paid (5,001) (115) 69 1,486 (3,561) Net cash provided by (used for) investing activities 1,193 25 (620) (430) 168 Increase (decrease) in cash and cash equivalents 17,436 925 2,630 516 21,507 Cash and cash equivalents at beginning of the year
$ 18,629 $ 950 $ 2,010 $ 86 $ 21,675 Cash and cash equivalents at end of the year 119 (continued)
CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2018 (In thousands) (continued) General Information Benefits and Municipal and Motorized Communication Facilities
- Insurance Equipment Services Maintenance Total Reconciliation of operating income to net cash provided by operating activities:
Operating income $ 4,549 $ 501 $ (1,736) $ (1,071) $ 2,243 Adjustment to reconcile operating income to net cash provided by operating activities: Depreciation 2,410 3,257 359 6,027 Changes in assets, deferred outflows of resources, liabilities and deferred inflows of resources: Accounts receivable 994 (11) 983 Inventories (84) (84) Prepaid and other assets 47 (268) (221) Accounts payable (1,799) (475) (195) (413) (2,882) Wages and benefit payable (396) 257 1,521 93 1,475 Unearned revenues 275 275 Compensated absences 103 103 Self-insurance liability 2,447 2,447 Total adjustments 1,672 2,097 4,315 39 8,123 Net cash provided by (used for) operating activities $ 6,221 $ 2,598 $ 2,579 $ (1,032) $ 10,366 Schedule of noncash financing and investing activities: Capital assets financed through capital leases $ 1,184 $ 1,184 Decrease in fair value of investments $ (766) $ (37) (26) $ (2) (831) Reconciliation of cash and cash equivalents:
$ 18,629 $ 950 $ 580 $ 86 $ 20,245 Cash and cash equivalents 526 526 Restricted cash and cash equivalents, current portion 904 904 Restricted cash and cash equivalents, noncurrent portion
$ 18,629 $ 950 $ 2,010 $ 86 $ 21,675 Total cash and cash equivalents 120
. See accompanied independent auditors' report
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CITY OF ANAHEIM Statement of Changes in Fiduciary Assets and Liabilities Agency Fund - Mello-Roos Year Ended June 30, 2018 (In thousands) Beginning Ending Balance Additions Deductions Balance ASSETS
$ 7,103 $ 3,385 $ (7,829) $ 2,659 Restricted cash and cash equivalents 29 4,571 4,600 Restricted investments 7 3,353 (3,332) 28 Due from other governments
$ 7,139 $ 11,309 $ (11,161) $ 7,287 Total assets LIABILITIES
$ 7,139 $ 3,406 $ (3,258) $ 7,287 Due to bond holders 121
- See accompanied independent auditors' report
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CITY OF ANAHEIM STATISTICAL INFORMA TION (Unaudited) use in evaluating the information contained within the The Statistical Section is included to provide financial statement users with additional historical perspective, context, and detail for them to of the City's economic condition. financial statements, notes to the financial statements, and required supplementary information with the goal of providing the user a better understanding Contents Financial trends time. These schedules contain information to help the reader understand how the City's financial performance and well-being have changed over Net Position by Component - Last Ten Fiscal Years 124 Changes in Net Position - Last Ten Fiscal Years 125 Governmental Activities Tax Revenues by Source - Last Ten Fiscal Years 127 128 Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 129 Revenue capacity These schedules contain information to help the reader assess the City's most significant local revenue sources. 130 General Government Tax Revenues by Source - Last Ten Fiscal Years 131 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 132 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 133 Principal Property Tax Payers - Current Year and Nine Years Ago 134 Property Tax Levies and Collections - Last Ten Fiscal Years Debt capacity ability to issue additional debt in the These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City'.s 135 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 136 Ratio of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 137 Direct and Overlapping Government Activities Debt - As of June 30, 2018 139 Legal Debt Margin information - Last Ten Fiscal Years 14Q Pledged-Revenue Coverage - Last Ten Fiscal Years Demographic and economic information activities take place. These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial 142 Demographic and Economic Statistics - Last Ten Fiscal Years 143 Principal Employers - Current and Nine Years Ago Operating information to the services the City provides and These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates 144 Full-Time Equivalent City government Employees by Function/ Program - Last Ten Fiscal Years 145 Operating Indicators by Function - Last Ten Fiscal Years 147 Capital Assets Statistics by Function - Last Ten Fiscal Years 149 Summary of Pension Obligation Funding Progress 150 Summary of Funding Progress for Other Post-Employment Benefits 151 City of Anaheim Map year. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant 123
CITY OF ANAHEIM Net Position by Component Last Ten Fiscal Years on thousands) (Accrual basis of accounting) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Governmental Activities Net investment in capital assets $1,008,489 $ 974,071 $ 968,473 $ 894,651 $1,016,259 $ 894,625 $ 831,430 $ 832,951 $ 794,164 $ 751,910 Restricted 266,983 274,830 211,338 210,934 205,998 196,853 190,868 182,011 150,750 154,306 2 1 Unrestricted (551,607) (557,245) (417,976) (447,817) (455,863) 30,341 16,760 (124,422) (121,283) (92,773) Total Governmental Activities 723,865 691,656 $761,835 $657,768 $766,394 1,121,819 1,039,058 890,540 823,631 813,443 Business-type Activities Net investment in capital assets 1,009,302 1,016,113 997,292 993,075 823,505 787,459 780,093 779,224 756,020 747,379 Restricted 86,863 83,811 76,749 83,448 77,311 71,131 61,235 54,626 49,325 45,493 Unrestricted 15,661 (26,767) 2 36,644 (1,725) (37,696) 1 121,083 112,159 115,445 130,812 145,269 Total Business-type Activities 1,111,826 1,073,157 1,110,685 1,074,798 863,120 979,673 953,487 949,295 936,157 938,141 Total Government Net investment in capital assets 2,017,791 1,990,184 1,965,765 1,887,726 1,839,764 1,682,084 1,611,523 1,612,175 1,550,184 1,499,289 Restricted 353,846 358,641 288,087 294,382 283,309 267,984 252,103 236,637 200,075 199,799 Unrestricted (535,946) (584,012) (381,332) (449,542) (493,559) 151,424 128,919 (8,977) 9,529 52,496 Total Government $1,835,691 $1,764,813 $1,872,520 $1,732,566 $1,629,514 $2,101,492 $1,992,545 $1,839,835 $1,759,788 $1,751,584 Note: 1 The City implemented Governmental Accounting Standards Board (GASB) Statement No. 68 Accounting and Financial Reporting for Pension, and Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date, for the fiscal year ended June 30, 2015. Implementation of these Statements require the City to restate prior period net position and are reflected in the fiscal year 2014 Unrestricted net position. Information prior to the implementation of these Statements is not available. 2 The City implemented Governmental Accounting Standards Board (GASB) Statement No. 75 Accounting and Financial Reporting for Other Postemployment enefits Other Than Pension for the fiscal year ended June 30, 2018. Implementation of this Statements requires the City to restate prior period net positions and are reflected in the fiscal year 2017 Unrestricted net position. Information prior to the implementation of these Statements is not available. Certain reclassifications have been made to prior year data to conform to the current presentation. Source: Finance Department, City of Anaheim 124 See accompanied independent auditors' report
CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (In thousands) (Accrual basis of accounting) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Program Revenues Governmental activities: Charges for services General government $ 1,749 $ 1,903 $ 2,034 $ 2,398 $ 1,779 $ 2,001 $ 1,872 $ 1,872 $ 1,708 $ 1,890 Police 15,361 15,441 11,775 10,001 9,927 9,859 10,122 10,435 10,127 10,089 Fire & Rescue 11,621 10,582 9,814 9,024 10,166 9,912 9,431 9,518 9,369 9,122 Community & Economic Development 7,421 19,046 10,210 14,023 17,305 9,151 7,281 8,143 7,306 5,459 Planning and Building 16,573 11,357 11,515 9,800 7,746 6,404 5,327 6,263 6,453 7,724 Public Works 17,378 16,140 15,817 13,309 13,037 14,012 11,401 9,837 7,619 7,421 Community Services 3,227 11,190 3,430 3,408 3,479 3,556 3,386 4,024 4,561 4,833 Convention, Sports & Entertainment 14,231 13,672 12,528 11,124 10,236 9,574 9,142 4,356 202 200 Total charges for services 87,561 99,331 77,123 73,087 73,675 64,469 57,962 54,448 47,345 46,738 Operating grants and contributions 115,520 109,989 108,131 109,968 114,584 112,507 108,620 124,358 121,731 110,200
- Capital grants and contributions 39,340 65,937 85,782 67,014 110,295 71,472 44,184 70,080 31,828 66,347 Governmental activities program revenues 242,421 275,257 271,036 250,069 298,554 248,448 210,766 248,886 200,904 223,285 Business-type activities:
Charges for services Electric Utility 443,755 433,561 430,485 453,697 426,051 451,958 397,931 381,496 377,387 365,526 Water Utility 79,074 70,777 60,509 63,495 65,946 60,785 57,748 55,598 56,368 50,807 Sanitation Utility 65,138 63,893 .61,006 60,076 57,843 57,230 56,630 56,359 56,023 55,424 Golf Courses 4,273 4,062 4,114 4,435 4,667 4,759 4,802 4,711 5,168 5,634 Convention, Sports and Entertainment 44,984 37,015 35,363 34,742 32,084 29,656 29,389 27,981 30,797 26,987 ARTIC Management 1,343 1,050 878 448 Total charges for services 638,567 610,358 592,355 616,893 586,591 604,388 546,500 526,145 525,743 504,378 Operating grants and contributions 88 425 776 287 452 952 1,101 746 1,990 965 Capital grants and contributions 8,353 4,381 11,743 8,734 8,441 6,698 8,954 12,667 5,622 6,620 Business-type activities program revenues 647,008 615,164 604,874 625,914 595,484 612,038 556,555 539,558 533,355 511,963 Total government program revenues 889,429 890,421 875,910 875,983 894,038 860,486 767,321 788,444 734,259 735,248 Expenses Governmental activities: General government 15,645 11,825 10,331 12,370 15,790 13,275 11,617 10,911 10,917 12,144 Police 173,921 151,559 132,889 135,161 127,037 124,556 117,840 119,504 125,121 121,162 Fire & Rescue 81,528 70,365 62,520 61,794 59,510 58,508 58,027 56,393 58,229 57,768 Community & Economic Development 96,067 100,720 110,618 80,976 80,043 82,769 95,683 105,937 117,621 109,523 25,376 21,944 19,862 18,303 17,030 16,917 15,648 15,627 16,822 17,057 Planning & Building 55,981 61,806 48,719 66,023 60,262 44,740 41,228 44,109 39,017 47,226 Public Works Community Services _39,020 34,799 34,212 31,587 34,130 28,925 28,282 30,958 35,372 37,704 2,346 2,530 2,687 2,599 2,514 2,405 2,315 2,218 1,952 1,515 Public Utilities 19,930 19,238 18,503 17,026 15,586 13,935 13,584 13,633 9,931 10,069 Convention, Sports & Entertainment 34,938 34,876 35,185 35,340 35,514 35,880 42,824 47,985 47,610 47,779 Interest on long-term debt 544,752 509,662 475,526 461,179 447,416 421,910 427,048 447,275 462,592 461,947 Governmental Activities Expenses 125 (continued)
CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (In thousands) (Accrual basis of accounting) (continued) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Expenses Business-type Activities: Electric Utility 394,574 412,424 390,732 401,243 411,246 417,008 386,358 372,129 375,173 359,320 Water Utility 75,755 72,715 61,620 68,011 62,996 57,056 58,319 56,608 55,478 49,309 Sanitation 61,145 58,218 56,564 55,979 53,508 52,813 55,939 49,845 50,521 52,702 Golf Courses 4,898 4,465 4,405 4,418 4,399 4,473 4,114 4,256 4,436 4,495 Convention, Sports and Entertainment Venues 66,058 47,321 44,285 56,715 46,385 45,001 45,278 44,662 45,954 45,487 ARTIC Management 6,218 6,374 6,235 5,075 Business-type activities expense 608,648 601,517 563,841 591,441 578,534 576,351 550,008 527,500 531,562 511,313 Total government expenses 1,153,400 1,111,179 1,039,367 1,052,620 .1,025,950 998,261 977,056 974,775 994,154 973,260 Net (Expense)/Revenue Governmental activities (302,331) (234,405) (204,490) (211,110) (148,862) (173,462) (216,282) (198,389) (261,688) (238,662) Business-type activities 38,360 13,647 41,033 34,473 16,950 35,687 6,547 12,058 1,793 650 Total government, net (expense) revenue (263,971) (220,758) (163,457) (176,637) (131,912) (137,775) (209,735) (186,331) (259,895) (238,012) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 76,547 72,909 70,646 68,405 66,282 64,311 58,896 59,053 59,689 60,806 Property tax increments 28,678 47,040 47,731 47,115 Sales tax and use tax 80,732 77,732 76,975 72,356 67,505 65,445 59,654 54,711 51,214 56,035 Transient occupancy taxes 154,925 149,566 137,570 119,744 110,134 102,936 90,376 82,605 77,139 80,055 Motor vehicle license fees 1,783 1,026 1,180 Other taxes 9,076 8,946 8,731 8,318 7,780 7,756 7,272 7,288 7,288 8,041 Gain on sale on capital assets 6,258 Unrestricted investment earnings 2,783 2,116 3,692 2,725 2,930 1,094 3,598 3,667 7,012 8,667 Other 105 106 87 55 49 1,857 873 614 1,175 394 Transfers 4,114 7,701 10,856 (169,119) 7,288 12,824 12,571 8,537 19,602 41,141 Special Item (8,218) Extraordinary gain 102,882 334,540 310,858 308,557 102,484 261,968 256,223 364,800 265,298 271,876 303,434 Governmental activities Business-type activities: Unrestricted investment earnings 4,423 4,001 5,710 8,086 6,986 3,323 10,216 9,617 15,825 19,580 (4,114) (7,701). (10,856) 169,119 (7,288) (12,824) (12,571) (8,537) (19,602) (41,141) Transfers 309 (3,700) (5,146) 177,205 (302) (9,501) (2,355) 1,080 (3,777) (21,561) Business-type activities 334,849 307,158 303,411 279,689 261,666 246,722 362,445 266,378 268,099 281,873 Total government Change in Net Position 32,209 76,453 104,067 (108,626) 113,106 82,761 148,518 66,909 10,188 64,772 Governmental activities 38,669 9,947 35,887 211,678 16,648 26,186 4,192 13,138 (1,984) (20,911) Business-type activities
$ 70,878 $ 86,400 $ 139,954 $ 103,052 $ 129,754 $ 108,947 $152,710 $80,047 $ 8,204 $ 43,861 Total government change in net position Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Finance Department, City of Anaheim 126 See accompanied independent auditors' report
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 1 Taxes Total 2018 $ 76,547 $ 80,732 $ 154,925 $ 9,076 $ 321,280 2017 72,909 77,732 149,566 8,946 309,153 2016 70,646 76,975 137,570 8,731 293,922 2015 68,405 72,356 119,744 8,318 268,823 2014 66,282 67,505 110,134 7,780 251,701 2013 64,311 65,445 102,936 7,756 240,448 2 2012 58,896 $ 28,678 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 1 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 current presentation. Source: Finance Department, City of Anaheim 127 See accompanied independent auditors' report
CITY OF ANAHEIM Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands) (Modified accrual basis of accounting) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 General Fund
$ 519 $ 819 $ 958 $ 1,538 $ 2,099 $ 2,531 $ 3,082 $ 3,626 Nonspendable 5,194 6,238 7,730 6,124 6,449 1,766 982 582 Restricted Committed 788 11,008 2,056 7,442 513 4,073 6,879 320 141 Assigned 41,556 42,336 39,850 39,615 30,394 26,920 22,636 22139 Unassigned
$ 4,092 $ 4,530 Reserved 29,490 47,729 Unreserved - undesignated 58,277 51,449 55,980 47,790 43,015 38,884 27,020 26,488 33,582 52,259 Total General fund Housing Authority Fund 34 2 4 7 38 42 Nonspendable 60,180 62,338 48,974 43,703 41,134 32,234 29,935 7778 Restricted 26,574 22,904 16,129 14,283 11,664 11,823 11,237 9922 Assigned 1,373 1,830 Reserved 11,603 5,669 Unreserved - undesignated 86,788 85,242 65,105 57,990 52,805 44,095 41,172 17,742 12,976 7,499 Total Housing Authority Fund Nonmajor Governmental Funds 9,091 8,713 6,000 6,270 3,542 4,619 1 631 Nonspendable 320,034 303,036 237,930 197,360 170,950 164,870 158,933 241,674 Restricted Committed 4,063
'6,797 9,612 5,875 3,040 3,291 8,055 7,400 7,761 Assigned (11,535) (12,202) (17,991) {20,071) (19,005) (11,231) (32,448) (34,293)
Unassigned 130,313 142,760 Reserved Unreserved - designated, reported in: 7,211 7,349 Special revenue funds 156 4,433 Debt service funds 31,899 41,544 Capital projects funds Unreserved - undesignated, reported in: 14,350 5,342 Special revenue funds (3,376) (7,037) Capital projects funds 328,450 309,159 231,814 186,599 158,778 166,313 133,886 215,773 180,691 194,253 Total nonmajor governmental funds
$ 292,379 $ 254,598 $ 249,292 $ 202,078 $ 260,003 $ 227,249 $ 254,011 Total governmental funds 1 $ 473,515 $ 445,850 $ 352,899 1 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 GAS B 54 is not available. Source: Finance Department, City of Anaheim 128 See accompanied independent auditors' report
CITY OF ANAHEIM Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands) (Modified accrual basis of accounting) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Revenues Property taxes $ 76,547 $ 72,909 $ 70,646 $ 68,405 $ 66,282 $ 64,311 $ 58,896 $ 59,053 $ 59,689 $ 60,806 Property tax increments 28,678 47,040 47,731 47,115 Sales and use taxes 81,680 80,500 81,844 71,977 68,581 62,793 58,589 55,034 48,210 56,493 Transient occupancy taxes 154,925 149,566 137,570 119,744 110,134 102,936 90,376 82,605 77,139 80,055 Other taxes 8,311 8,287 8,024 7,478 7,012 7,078 6,401 6,486 6,303 6,451 Licenses fees, and permits 45,047 36,504 30,653 28,573 21,353 22,305 17,067 18,772 21,580 21,062 Intergovernmental revenues 124,696 123,797 121,055 155,314 215,755 186,018 143,348 150,394 141,418 158,729 Charges for services 43,982 42,047 36,147 33,295 32,569 30,883 29,672 24,408 18,351 17,874 Fines, forfeits, and penalties 2,988 2,756 2,875 2,823 2,656 2,907 3,515 3,304 3,255 3,409 47,505 67,204 20,068 22,427 12,141 10,582 12,423 12,647 11,754 Use of money and property5 26,801 2 Contribution from property owners 36,864 4 41,007 1 809 4,843 3,692 374 1,598 7,676 Other5 1,178 2,127 1,368 9,738 Total revenues 566,155 602,862 557,386 517,415 547,578 496,215 450,816 500,900 437,921 471,424 Expenditures General government 21,358 19,447 18,679 19,052 21,070 18,270 16,502 16,055 15,822 16,953 Police 156,338 148,801 139,775 127,226 120,962 117,702 112,656 114,678 115,379 112,057 Fire & Rescue 74,888 70,164 66,399 61,483 57,529 56,127 55,886 55,802 55,713 55,966 Community & Economic Development 93,855 92,089 107,544 3 89,446 83,658 86,282 95,352 110,138 126,590 112,406 Planning & Building 23,649 21,997 19,935 17,667 16,086 15,785 14,408 14,560 15,173 15,489 Public Works 34,331 30,886 30,388 29,814 29,737 25,387 22,861 27,087 19,957 29,321 Community Services 34,042 32,258 31,980 28,394 30,602 25,268 24,618 27,813 31,311 33,572 Public Utilities 2,341 2,496 2,727 2,622 2,510 2,398 2,313 2,220 1,939 1,507 Convention, Sports & Entertainment 14,639 14,023 13,089 11,608 10,714 10,002 9,725 9,917 6,369 6,699 Capital outlay 46,366 44,532 32,589 79,710 136,597 98,601 55,505 70,918 62,422 52,229 Debt service: 14,749 26,123 28,448 25,289 24,220 18,948 16,294 12,219 12,777 16,085 Principal 28,412 15;571 16,930 18,085 18,797 19,808 26,927 33,032 33,509 34,830 Interest charges Debt issuance costs 127 227 70 544,968 518,387 508,483 510,523 552,482 494,578 453,047 494,666 496,961 487,184 Total expenditures 21,187 84,475 48,903 6,892 (4,904) 1,637 (2,231) 6,234 (59,040) (15,760) Revenues over (under) expenditures Other Financing Sources (Uses) 97,513 103,797 95,920 85,818 84,813 73,470 131,093 99,571 83,498 121,987 Transfers in (76,304) (93,285) (101,446) (85,403) (79,373) (75,953) (59,393) (119,552) (86,621) (59,970) Transfers out 5,084 Issuance of refunding bonds 6,200 (6,200) (5,683) Payments to refunded bond escrow agent 94 Premium on long term debt 1,790 2,250 6,125 1,100 22,654 1,350 31,500 13,570 8,000 2,769 Issuance of long-term debt 750 3,848 Claims settlement proceeds (67,235) Extraordinary loss 6,478 8,476 11,617 30,889 10,210 45,577 (55,694) 26,520 32,278 51,795 Total other financing sources
$ 27,665 $ 92,951 $ 60,520 $ 37 781 $ 5,306 $ 47 214 $ (57,925) $ 32,754 $ (26,762) $ 36,035 Net change in fund balances 8.66% 8.80% 9.54% 10.07% 10.34% 9.79% 10.87% 10.68% 10.65% 11.71 %
Debt service as a percentage of non-capital expenditures 1 Contribution from property owners pursuant to the issuance of Community Facility District 08-1 Platinum Triangle Series 2010 Special Tax Bond , Increase in Use of money and property is due to one-time land held for resale transferred from the Successor Agency , Increase in Community and Economic Development expenditures is due to a one-time loss on sale of land held for resale.
- Contribution from property owners pursuant to the issuance of Community Facility District 08-1 Platinum Triangle Series 2016 Special Tax Bond
- Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation. 129 See accompanied independent auditors' report
CITY OF ANAHEIM General Governm ent Tax Revenue s By Source Last Ten Fiscal Years (In thousands) (Modified accrual basis of accounting) Amounts in Dollars Property Taxes Property Tax Increments Secured Unsecured Supplemental Secured Unsecured Supplemental Property Sales Transient Property Property Property Property Taxes in-lieu and Use Occupancy Other Fiscal Property Property Taxes Residual Taxes Taxes Taxes ofVLF 1 Taxes Taxes Taxes Total Year Taxes Taxes
$ 1,259 $ 2,892 $ 31,735 $ 81,680 $154,925 $ 8,311 $ 321,463 2018 $ 39,396 $ 1,265 1,108 2,484 30,332 80,500 149,566 8,287 311,262 2017 37,771 1,214 3
1,256 991 2,203 29,196 81,844 137,570 8,024 298,084 2016 37,000 35,624. 1,358 1,001 2,262 28,160 71,977 119,744 7,478 267,604 2015 1,243 832 2,873 27,358 68,581 110,134 7,012 252,009 2014 33,976 806 2,834 26,363 62,793 102,936 7,078 237,118 2013 33,114 1,194 2 2 2 242,940 1,289 207 $ 21,576 $ 6,884 $ 218 25,630 58,589 90,376 6,401 2012 31,770 373 36,824 8,859 1,357 25,532 55,034 82,605 6,486 250,218 2011 31,848 1,300 385 38,809 8,221 701 25,696 48,210 77,139 6,303 239,072 2010 32,267 1,341 37,710 7,986 1,419 26,247 56,493 80,055 6,451 250,920 2009 32,496 1,351 712 to the property tax category. This was part of the
- 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 State of California 2004 Budget Act.
Property tax increments were received up to January 31, 2012. 2 Decrease in property tax increments revenues in fiscal year 2012 was due to dissolution of the Redevelopment Agency on February 1, 2012. 3 Increase in sales and use taxes in fiscal year 2016 was due to the sales tax triple flip final distribution. Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation. Source: Finance Department, City of Anaheim 130 See accompanied independent auditors' report
CITY OF ANAHEIM Assessed Value and Estimate d Actual Value of Taxable Property Last Ten Fiscal Years (In thousands) (Modified Accrual Basis of Accounting) Fiscal Year 2018 2017 2016 2015 2014 City of Anaheim
$36,199,163 $ 34,732,460 $33,338,748 $ 32,023,757 $30,548,214 Secured property 1,175,627 1,172,650 1,243,307 1,515,905 1,266,403 Unsecured property 37,374,790 35,905,110 34,582,055 33,539,662 31,814,617 Total City of Anaheim Dissolved Anaheim Redevelopment Agency 5,182,683 4,773,715
- 4,479,386 4,102,931 3,916,169 Secured property 720,305 684,544 753,736 759,729 654,982 Unsecured property 5,902,988 5,458,259 5,233,122 4,862,660 4,571,151 Total Anaheim Redevelopment Agency
$43,277,778 $41,363,369 $ 39,815,177 $ 38,402,322 $ 36,385,768 Total Taxable Assessed Value 0.10851% 0.10851% 0.11024% 0.11049% 0.11062%
Total Direct Tax Rate Fiscal Year 2013 2012 2011 2010 2009 City of Anaheim
$ 29,608,967 $ 28,808,849 $28,600,152 $28,775,989 $29,329,062 Secured property 1,265,519 1,232,825 1,278,062 1,283,263 1,226,209 Unsecured property 30,874,486 30,041,674 29,878,214 30,059,252 30,555,271 Total City of Anaheim Dissolved Anaheim Redevelopment Agency 4,338,935 3,977,843 3,751,227 3,762,168 3,644,931 Secured property 683,237 656,505 743,403 762,903 789,618 Unsecured property 5,022,172 4,634,348 4,494,630 4,525,071 4,434,549 Total Anaheim Redevelopment Agency
$ 35,896,658 $ 34,676,022 $ 34,372,844 $ 34,584,323 $ 34,989,820 Total Taxable Assessed Value 0.11078% 0.11075% 0.11075% 0.11031% 0.11024%
Total Direct Tax Rate upon the assessed value of the property being taxed. Each year, the assessed value 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 at the time that it is sold to a new owner. At that point, the new 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 with respect to the actual market value of taxable property and is subject to the is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available limitations described above. Source: Auditor-Controller, California Municipal Statistics, Inc, County of Orange 131 See accompanied independent auditors' report
CITY OF ANAHEIM Property Tax Rates Direct and Overlapping Governmen ts Last Ten Fiscal Years (Rate per $100 assessed value) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 City Direct Rate <1) City Basic Rate (2) 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10816 0.10816 Anaheim General Obligation Bond Fund 0.00000 0.00000 0.00173 0.00198 0.00211 0.00227 0.00224 0.00224 0.00215 0.00208 0.10851 0.10851 0.11024 0.11049 0.11062 0.11078 0.11075 0.11075 0.11031 0.11024 Overlapping Rates: Anaheim Elementary General Fund 0.29873 0.29873 0.29873 0.29873 0.29873 0.29873 0.29873 0.29873 0.29778 0.29778 Anaheim High General Fund 0.19043 0.19043 0.19043 0.19043 0.19043 0.19043 0.19043 0.19043 0.18982 0.18982 Educational Revenue Augmentation Fund 0.15592 0.15592 0.15592 0.15592 0.15592 0.15592 0.15592 0.15592 0.15543 0.15543 North Orange Co. Community College General Fund 0.07755 0.07755 0.07755 0.07755 0.07755 0.07755 0.07755 0.07755 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 0.01579 0.01579 0.01579 0.01579 0.01579 0.01574 0.01574 Orange County Flood Control District General 0.02197 0.02197 0.02197 0.02197 0.02197 0.02197 0.02197 0.02197 0.02190 0.02190 Orange County General Fund 0.06849 0.06849 0.06849 0.06849 0.06849 0.06849 0.06849 0.06849 0.06827 0.06827 Orange County Harbors Beaches & Parks CSA 0.01698 0.01698 0.01698 0.01698 0.01698 0.01698 0.01698 0.01698 0.01693 0.01693 Orange County Sanitation District #2 Operating 0.03227 0.03227 0.03227 0.03227 0.03227 0.03227 0.03227 0.03227 0.03469 0.03469 Orange County Transportation Authority 0.00312 0.00312 0.00312 0.00312 0.00312 0.00312 0.00312 0.00312 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 0.00831 0.00831 0.00831 0.00831 0.00831 0.00893 0.00893 Orange County Water District Water Reserve 0.00012 0.00012 0.00012 0.00012 0.00012 0.00012 0.00012 0.00012 0.00013 0.00013 Anaheim Elementary School Districts 0.04502 0.04461 0.04227 0.02867 0.05848 0.05382 0.05371 0.03363 0.03193 0.02248 Anaheim High School Districts 0.02211 0.04259 0.04948 0.02412 0.02620 0.02858 0.02678 0.02745 0.02617 0.02363 North Orange County Community College 0.02927 0.02885 0.03043 0.01704 0.01704 0.01902 0.01742 0.01758 0.01662 0.01493 Water District Rate 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00370 0.00370 0.00430 0.00430 1.09990 1.11955 1.12741 1.07531 1.10733 1.10719 1.10385 1.08460 1.08117 1.06742 Total Direct and Overlapping Rate (1) Excludes rates associated with mello-roos di~tricts. (2) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides. In 1986, the State Constitu!ion was up to 2% per year for inflation. 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 However, property is assessed to its current value when a change of ownership occurs. New construction, including tenant improvements, is assessed at its current value. Source: Auditor Controller, Orange County 132 See accompanied independent auditors' report
CITY OF ANAHEIM Principal Property Tax Payers Current Year and Nine Years Ago (In thousands) Fiscal Year 2018 2009 Percentage Percentage of Total Taxable of Total Taxable Assessed Assessed Assessed Assessed Tax Payer Rank Value Value Rank Value Value Walt Disney World Company 79.30% $ 4,310,881 77.06% $ 3,746,771 HHC HA Investment II Inc. 2 3.82% 207,587 Anaheim Concourse ILP LLC 3 3.46% 188,151 US REIF MG Madison Park CA LLC 4 2.32% 126,338 Irvine Company LLC 5 2.14% 116,566 Teachers Insurance & Annuity Association 6 1.96% 106,759 Prologis California I LLC 7 1.82% 98,750 Gateway Apartments II LLC 8 1.74% 94,449 Angeli LLC 9 1.73% 93,946 8 1.74% 84,668 OTR 10 1.71% 92,868 Lennar Platinum Trialble 2 4.39% 213,460 Maker Anaheim LLC 3 3.91% 190,006 Kaiser Foundation Health 4 3.19% 154,884 Anaheim GW II LLC 5 2.40% 116,740 PPC Anaheim Apartments 6 2.23% 108,243 Maguire Properties Syadium Gateway 7 1.75% 84,897 Worldmark Club 9 1.68% 81,600 Anaheim Memorial Hospital 10 1.66% 80,879 Total 100.00% $ 5,436,295 100.00% $4,862,148 Source: Finance Department, City of Anaheim, California Municipal Statistics, Inc. 133 See accompanied independent auditors' report
CITY OF ANAHEIM Property Tax Levies and Collections Last Ten Fiscal Years (In thousands) Collected within the Total Collected within the Total Fiscal Year of the Levy Collections to Date Fiscal'Year of the Levy Collections to Date Collections Collections Total in
- Total Tax in Fiscal Taxes Percentage Subsequent Percentage Increments Percentage Subsequent Percentage 2
Year Levy Amount 1 of Levy Years Amount of Levy Levy 2 Amount of Levy Years Amount of Levy 2018 $42,432 $41,578 97.99% $ 162 $41,740 98.37% 2017 40,787 39,710 97.36% 342 40,052 98.20% 2016 40,026 38,832 97.02% 382 39,214 97.97% 2015 38,365 37,456 97.63% 414. 37,870 98.71% 2014 36,293 35,558 97.97% 460 36,018 99.24% 2013 34,813 34,116 98.00% 384 34,500 99.10% 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% 34,579 33,068 95.63% 1,231 34,299 99.19% 48,432 46,057 95.10% 622 46,679 96.38% 2009 1 Excludes property taxes in-lieu of vehicle license fees 2 Decrease 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 current presentation. Source: Auditor-Controller, County of Orange 134 See accompanied independent auditors' report
CITY OF ANAHEIM Ratios of Outstanding Debt by Type Last Ten Fiscal Years (In thousands, except per capita amount) Fiscal Year 2018 2017 2016 2015 2014 Governmental Activities Bonds $ 621,675 $ 627,589 $ 632,321 $ 640,891 $ 614,757 Certificates of participation 8,880 Notes and loans 28,008 29,577 20,820 21,372 50,757 Capital leases 1,550 1,738 2,088 2,346 1,325 Total governmental activities 651,233 658,904 655,229 664,609 675,719 Business-Type Activities Bonds 1,214,339 1,235,400 1,124,159 1,116,443 780,553 38,000 Certificates of participation Notes and loans 16,972 20,523 36,200 57,399 48,271 Total business-type activities 1,231,311 1,255,923 1,160,359 1,173,842 866,824 Total Government $ 1,882,544 $ 1,914,827 $ 1,815,588 $ 1,838,451 $ 1,542,543 19.87% 20.12% 20.18% 21.26% 17.22% Percentage of Personal Income
$ 5,272 $ 5,341 $ 5,070 $ 5,231 $ 4,429 Per Capita Fiscal Year 2013 2012 2011 2010 2009 Governmental Activities
$ 616,086 $ 616,444 $ 821,587 $ 810,504 $ 805,068 Bonds 10,020 11,085 12,070 12,990 13,840 Certificates of participation 54,877 25,546 34,566 29,094 24,621 Notes and loans 1,369 1,694 2,341 2,605 1,235 Capital leases Total governmental activities 682,352 654,769 870,564 855,193 844,764 Business-Type Activities 863,987 889,581 908,683 805,925 829,707 Bonds 38,000 38,000 38,000 38,000 38,000 Certificates of participation 62,722 24,652 30,519 11,379 12,299 Notes and loans 964,709 952,233 977,202 855,304 880,006 Total business-type activities
$ 1,647,061 $ 1,607,002 $ 1,847,766 $ 1,710,497 $ 1,724,770 Total Government 19.74% 20.95% 24.57% 23.32% 23.96%
Percentage of Personal Income
$ 4,758 $ 4,674 $ 5,418 $ 5,088 $ 5,193 Per Capita Note: Per capita amounts are estimates Certain reclassifications have been made to prior year data to conform to the current presentation.
Sources: California State Department of Finance and Finance Department, City of Anaheim US Census Yearly American Community Survey 135 See accompanied independent auditors' report
CITY OF ANAHEIM Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (In thousands, except per capita amount) Fiscal Year 2018 2017 2016 2015 2014 Bonds General Obligation $ 700 $ 1,360 $ 1,995 Lease Revenue $ 621,675 $ 627,589 631,621 639,531 612,762 621,675 627,589 632,321 640,891 614,757 Less amounts available in debt service fund 150,052 127,581 108,482 88,174 73,500 Total net obligation bonds outstanding $ 471,623 $ 500,008 $ 523,839 $ 552,717 $ 541,257 Percentage of Assessed Value of Property 1.09% 1.21% 1.32% 1.44% 1.51% Per capita $ 1,321 $ 1,395 $ 1,463 $ 1,573 $ 1,554 Fiscal Year 2013 2012 2011 2010 2009 Bonds
$ 2,605 $ 3,185 $ 3,735 $ 4,255 $ 4,750 General Obligation Lease Revenue 613,481 616,444 609,683 605,252 600,064 208,169 200,997 200,254 Tax Allocation 616,086 619,629 821,587 810,504 805,068 61,625 53,398 67,363 69,043 63,560 Less amounts available in debt service fund
$ 554,461 $ 566,231 $ 754,224 $ 741,461 $ 741,508 Total net obligation bonds outstanding 1.54% 1.63% 2.19% 2.14% 2.12%
Percentage of Assessed Value of Property
$ 1,602 $ 1,647 $ 2,212 $ 2,205 $ 2,23~
Per capita 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 current presentation. Source: Finance Department, City of Anaheim 136 See accompanied independent auditors' report
CITY OF ANAHEIM Direct and Overlapping Governmental Activities Debt As of June 30, 2018 (In thousands) 2017-18 Assessed Valuation $43,277,778 Outstamlitrn DIRECT TAX AND ASSESSMENT DEBT: City of Anaheim DIRECT GENERAL FUND DEBT: City of Anaheim General Fund Obligations 651,233 TOTAL GROSS DIRECT DEBT 651,233 Less: City of Anaheim Public Financing Authority (100% self-supporting) 621,675 City of Anaheim various revenue funds (100% self-supporting) 29,558 TOTAL NET DIRECT DEBT $ City's Share Total Debt of Debt 6/30/2018 % A1u1licable (1l 6/30/2018 OVERLAPPING TAX AND ASSESSMENT DEBT:
$ 60,600 1.577 % $ 956 Metropolitan Water District 206,054 27.453 56,568 North Orange Joint Community College District 246,734 12.451 30,721 Rancho Santiago Community College District 121,395 0.384 466 Rancho Santiago Community College District School Facilities Improvement District No 1 200,529 67.590 135,538 Anaheim Union High School District 169,665 0.249 422 Fullerton Joint Union High School District 328,540 0.576 1,892 Garden Grove Unified School District 188,000 25.958 48,801 Orange Unified School District 236,975 19.244 45,603 Placentia - Yorba Linda Unified School District 168,236 99.138 166,786 Anaheim School District 21,793 67.359 14,680 Magnolia School District 150,086 Various 24,316 Other School Districts 66,960 100.000 66,960 City of Anaheim Community Facilities Districts 2,165,567 593,709 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT OVERLAPPING GENERAL FUND DEBT:
210,347 7.761 16,325 Orange County General Fund Obligations 383,564 7.761 29,768 Orange County Pension Obligation Bonds 13,990 7.761 1,086 Orange County Board of Education Certificates of Participation 9,610 28.265 2,716 North Orange County Regional Occupation Program Certificates of Participation 31,578 25.958 8,197 Orange Unified School District Certificates of Participation 78,765 25.958 20,446 Orange Unified School District Benefit Obligations 94,175 19.244 18,123 Placentia-Yorba Linda Unified School District Certificates of Participation 68,605 67.590 26,093 Anaheim Union High School District Certificates of Participation 19,295 0.249 48 Fullerton Joint Union High School District Certificates of Participation 4,810 0.166 8 Fullerton School District Certificates of Participation 16,257 67.359 10,951 Magnolia School District Certificates of Participation 930,996 133,761 TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 189,870 .0005-100 % 156,463 City of Anaheim Tax Allocation Bonds 156,463 TOTAL OVERLAPPING TAX INCREMENT DEBT 883,933 TOTAL GROSS OVERLAPPING DEBT 883,933 TOTAL NET OVERLAPPING DEBT (2)
$ 1,535,166 GROSS COMBINED TOTAL DEBT
$ 883,933 NET COMBINED TOTAL DEBT 137 (continued)
CITY OF ANAHEIM Direct and Overlapping Governmental Activities Debt As of June 30, 2018 on thousands) (continued) <1> 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 obligati<:ms. Ratios to 2017-18 Assessed Valuation: Direct Debt ($0) 0.00% Total Overlapping Tax and Assessment Debt 1.37% Ratios to Adjusted Assessed Valuation: Gross Combined Direct Debt ($651,233) 1.50% Net Combined Direct Debt ($0) 0.00% Gross Combined Total Debt 3.55% Net Combined Total Debt 2.04% Ratios to Redevelopment Increment Valuation /$5.906,608) Total Overlapping Tax Increment Debt 2.65% Source: California Municipal Statistics, Inc. overlap-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 ping 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 repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repay-ing the debt, of each overlapping government. 138 See accompanied independent auditors' report
CITY OF ANAHEIM Legal Debt Margin Last Ten Fiscal Years (In thousands) Fiscal Year 2018 2017 2016 2015 2014 Debt limit $ 1,622,917 $ 1,551,126 $ 1,493,069 $ 1,440,087 $ 1,364,466 Total net debt applicable to limit (700) (1,360) (1,995) Legal debt margin $ 1,622,917 $ 1,551,126 $ 1,492,369 $ 1,438,727 $ 1,362,471 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.05% 0.09% 0.15% Legal Debt Margin Assessed value $ 43,277,778 $ 41,363,369 $ 39,815,177 $ 38,402,322 $ 36,385,768 Debt limit (3.75% of total assessed value) 1 $ 1,622,917 $ 1,551,126 $ 1,493,069 $ 1,440,087 $ 1,364,466 Fiscal Year 2013 2012 2011 2010 2009 Debt limit $ 1,346,125 $ 1,300,351 $ 1,288,982 $ 1,296,912 $ 1,312,118 Total net debt applicable to limit (2,605) (3,185) (3,735) (4,255) (4,750) Legal debt margin $ 1,343,520 $1,297,166 $1,285,247 $ 1,292,657 $ 1,307,368 Total net debt applicable to the limit as a percentage of debt limit 0.19% 0.24% 0.29% 0.33% 0.36% Legal Debt Margin Assessed value $ 35,896,658 $ 34,676,022 $ 34,372,844 $ 34,584,323 $ 34,989,820 Debt limit (3.75% of total assessed value) 1 $ 1,346,125 $ 1,300,351 $ 1,288,982 $ 1,296,912 $ 1,312,118 Note: 1 California Government Code sets the debt limit at 15%. The Code section was enacted when assessed valuation were based on 25% of full market value. This has since changed to 100% of full market value. Thus the limit shown is 3.75% (one-fourth the limit of 15%). By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation. Source: Finance Department, City of Anaheim 139 See accompanied independent auditors' report
CITY OF ANAHEIM Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands) (continued) Electric Utility Revenue Bonds Less Net Fiscal Electric Operating Available Debt Service Year Revenue Expenses 1 Revenue Principal Interest Total Coverage 2018 $ 446,156 $ 330,376 $ 115,780 $ 21,305 $ 30,613 $ 51,918 2.2301 2017 435,805 338,888 96,917 18,950 28,948 47,898 2.0234 2016 433,744 319,169 114,575 14,040 27,995 42,035 2.7257 2015 458,211 341,206 117,005 12,950 27,878 40,828 2.8658 2014 430,782 347,290 83,492 11,590 30,039 41,629 2.0056 453,949 349,835 104,114 18,995 33,335 52,330 1.9896 2013 2012 407,787 314,231 93,556 18,175 34,104 52,279 1.7896 391,218 309,274 81,944 17,825 30,825 48,650 1.6844 2011 390,364 309,112 81,252 15,995 31,788 47,783 1.7004 2010 378,916 300,269 78,647 15,370 28,798 44,168 1.7806 2009 1 Operating expenses includes transfer for right of way and excludes amortization and depreciation. 140 See accompanied independent auditors' report
CITY OF ANAHEIM Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands) Water Utility Revenue Bonds Less Net Fiscal Water Operating Available Debt Service 1 Year Revenue Exeenses Revenue Princieal Interest Total Coverage 2018 $ 80,131 $ 59,975 $ 20,156 $ 3,370 $ 7,638 $ 11,008 1.8310 2017 71,790 56,487 15,303 3,380 6,815 10,195 1.5010 2016 61,721 46,383 15,338 5,885 1,775 7,660 2.0023 2015 65,518 52,883 12,635 960 4,178 5,138 2.4591 2014 66,979 50,046 16,933 920 4,217 5,137 3.2963 2013 61,849 44,838 17,011 950 4,255 5,205 3.2682 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 1 Operating expenses include transfer and 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 Sanitation Revenue Bonds Less Net Fiscal Wastewater Operating Available Debt Service 2 3 Coverage Year Revenue Exoenses Revenue Princieal Interest Total 2018 $ 13,963 $ 6,779 $ 7,184 $ 1,095 $ 1,902 $ 2,997 2.3971 2017 13,771 6,252 7,519 1,045 1,954 2,999 2.5072 2016 13,291 5,733 7,558 1,005 1,994 2,999 2.5202 2015 13,373 6,103 7,270 955 2,042 2,997 2.4258 2014 12,572 5,594 6,978 920 2,079 2,999 2.3268 12,106 5,477 6,629 880 2,118 2,998 2.2111 2013 11,933 4,832 7,101 835 2,161 2,996 2.3702 2012 11,813 4,030 7,783 805 2,193 2,998 2.5961 2011 11,773 5,452 6,321 775 2,224 2,999 2.1077 2010 10,913 5,176 5,737 2,224 2,224 2.5796 2009 2 Amounts based on the notes to the basic financial statement, segment reporting 3 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 141 (continued)
CITY OF ANAHEIM Demographic and Economic Statistics Last Ten Fiscal Years Personal Per Education Orange Income Capita Level in County Fiscal (thousands Personal Median Years of School Unemployment Year Po~ulation c1> of dollars) Income* Age< 1> Schooling Enrollment Rate 2018 357,084 $9,476,295 26,538<2> 33.7 12.2 63,727 3.30% 2017 358,546 9,515,094 26,538 33.6 12.2 64,870 3.80% 2016 358,136 8,998,883 25,127 33.6 12.2 65,692. 4.40% 2015 351,433 8,649,469 24,612 33.6 12.2 66,439 4.10% 2014 348,305 8,955,966 25,713 33.8 12.2 66,982 6.20% 2013 346,161 8,344,211 24,105 32.8 12.2 67,014 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 32.1 12.2 67,884 9.20% 2010 336,208 7,333,705 21,813 32.1 12.2 68,331 9.50% 2009 332,120 7,198,701 21,675 31.5 12.2 68,890 9.30% (1) Population and Median Age were updated to reflect Census 201 o counts. (2) Per capita income for FY 2018 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 142 See accompanied independent auditors' report
CITY OF ANAHEIM Principal Employers Current Year and Nine Years Ago Fiscal Year 2018 2009 Percentage Percentage of Total of Total City City Employer Rank Employees Employment Rank Employees Employment Disneyland Resort 1 31,160 19.0% 1 20,050 12.6% Kaiser Foundation Hospital 2 6,185 3.8% 2 3,660 2.3% Northgate Gonzalez Supermarkets 3 2,000 1.2% 4 2,000 1.3% Anaheim Regional Medical Center 4 1,200 0.7% 5 1,185 0.7% Hilton Anaheim 5 1,000 0.6% 8 920 0.6% Angels Baseball 6 930 0.6% Anaheim Global Medical Center 7 900 0.5% L-3 Communications 8 860 0.5% Carrington Mortgage Services LLC (CMS) 9 800 0.5% G4S Secure Solutions 10 800 0.5% St. Joseph Heritage Healthcare 10 800 0.5% Airport Bus 3 2,000 1.3% West Anaheim Medical Center 9 774 0.5% Honda Center 7 1,000 0.6% AT&T 6 1,000 0.6% 10 750 0.5% Alstyle Apparel Total 46,635 28.4% 33,339 21.0% Source: Inside Prospects Database 143 See accompanied independent auditors' report
CITY OF ANAHEIM Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function/Program City Council 9 9 6 7 7 7 7 7 7 7 City Administration 19 19 19 20 20 20 21 21 24 24 City Attorney 33 33 33 33 31 30 30 30 35 35 City Clerk 8 8 8 7 7 7 6 6 7 7 Human Resources 40 40 39 37 37 38 36 36 40 40 1 Finance 55 55 54 44 44 44 46 47 52 53 Police 590 576 569 561 549 536 530 554 610 610 Fire & Rescue 276 276 274 267 262 262 275 277 289 289 Community & Economic Development 73 73 73 71 68 78 102 105 106 109 Planning & Building 76 76 76 75 71 69 73 75 93 94 Public Works 236 236 235 237 236 234 235 252 252 252 Community Services 93 .92 92 91 87 87 115 123 180 183 Public Utilities 352 352 352 354 353 352 355 377 377 377 Convention, Sports & Entertainment 85 85 85 85 84 83 91 _gi 91 91 Total 1,945 1,930 1,915 1,889 1,856 1,847 1,922 2,001 2,163 2,171 1 Increase is due to reorganization of the Citywide Geographic Information System (GIS) and Police Information System into Finance. Source: City of Anaheim 144 (continued)
CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function/Program Police Department Number of calls for service 200,934 200,695 208,710 195,305 186,042 186,461" 189,751 - 195,587 185,934 191,037 Number of 911 calls received 146,770 150,555 155,371 158,447 145,813 182,856 179,313 165,698 140,529 129,998 Number of Part I Crimes per 100,000 population 2,925 2,917 3,279 2,950 2,883 3,326 3,057 2,886 2,857 2,764 Number of Arrest 11,865 11,010 11,604 11,405 11,846 11,617 11,494 13,345 17,650 15,951 Number of Field Reports processed by Records Bureau 45,402 41,208 41,655 39,191 38,362 39,066 33,050 35,807 35,256 37,999 Number of traffic collisions 4,757 4,817 5,179 4,833 4,686 4,414 4,044 4,046 4,027 4,251 Number of Hours of Volunteer service 19,270 21,132 21,647 22,885 24,124 23,470 25,309 20,335 18,038 16,201 Fire & Rescue Department Fire & Rescue responses 1,057 1,035 1,082 952 885 902 923 983 1,275 1,016 False alarm responses 1,803 1,903 1,848 3,910 1,735 1,424 1,390 1,487 1,467 1,503 Mutual aid responses 4,069 5,450 5,506 4,322 3,001 2,860 2,744 2,707 2,560 2,532 Medical responses 29,385 28,437 28,858 27,158 24,912 24,735 23,061 22,202 24,045 21,553 Hazardous condition responses 190 222 211 213 211 207 201 199 207 224 Public Works Centerline miles of arterial highway pavement improved 1.29 1.22 4.7 3.55 7.13 5.9 8.7 5.8 9.0 8.1 Square feet of deteriorated pavement replaced 2,960,600 4,017,828 2,487,188 2,101,231 4,345,480 4,029,806 2,977,482 4,274,463 820,000 780,500 Square feet of deteriorated pavement slurry sealed 4,704,400 5,519,982 1,941,187 7,253,633 4,422,148 2,850,939 4,208,194 4,167,569 1,975,000 2,532,000 Number of traffic intersections maintained 360 335 333 321 327 318 318 319 318 318 Number of traffic control hubs maintained 18 18 18 18 19 18 18 18 18 17 Square feet of deteriorated sidewalk replaced 162,774 102,305 232,922 153,531 96,399 77,590 74,780 62,940 60,000 50,500 Linear feet of damaged curb/gutter replaced 65,569 6,797 33,373 30,152 29,996 25,187 27,661 24,755 11,500 12,500 Square feet of medians/parkways maintained 6,101,098 6,063,299 6,063,299 5,721,764 5,644,799 5,644,818 5,511,065 5,460,655 5,400,000 5,350,000 Square feet of landscape maintained in the Anaheim Resort 1,605,958 1,554,886 1,554,886 1,542,442 1,542,442 1,430,486 1,430,486 1,430,486 1,430,486 1,419,286 Square feet of hardscape maintained in the Anaheim Resort 991,350 991,360 991,360 991,370 991,360 858,828 858,828 1,001,743 858,828 858,828 Number of vehicles maintained 1,050 1,036 1,025 1,097 1,144 1,106 1,152 1,162 1,331 1,331 Number of vehicles per mechanic 52 49 49 57 58 58 50 47 50 55 Square feet of interior space maintained 2,399,337 2,379,100 2,379,100 2,379,100 2,700,000 2,362,992 2,176,265 2,176,265 2,176,265 2,.176,265 Square feet of exterior space maintained 37,698,184 37,662,184 37,662,184 37,662,184 37,655,278 37,645,278 39,138,187 39,138,187 39,138,187 Number of facility square feet (interior) per worker 126,281 125,215 1,459,000 1,459,000 150,000 139,000 120,904 114,540 103,631 103,631 Number of construction projects 180 80 120 100 165 120 100 136 130 130 Number of permit inspections 900 650 510 429 486 380 404 355 800 800 Parks Number of park acres maintained per full-time equivalent 77 77 77 76 75 75 75 75 12 12 employee 66 66 66 66 66 66 66 66 66 66 Number of sports fields prepared
$9,497 $9,221 $8,952 $8,691 $8,438 $8,192 $8,031 $8,333 $9,651 $9,950 Cost per acre of parks maintained.
$4,934 $4,791 $4,655 $4,519 $4,387 $4,260 $4,133 $4,261 $5,134 $5,134 Cost per sports field maintained.
Golf Courses
$11,147 $10,434 $10,076 $9,455 $9,931 $9,595 $9,010 $9,569 $11,327 $10,674 Cost per acre of golf course maintained 102,498 102,542 102,234 110,855 117,652 118,879 120,675 116,287 124,404 137,948 Number of rounds played 200 200 200 200 200 200 200 200 200 200 Number of acres maintained 145 (continued)
CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years (continued) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function/Program City Libraries Hours open 17,065 16,023 15,461 16,929 16,820 16,243 15,530 15,364 18,944 19,290 Total circulation of materials, including eBooks 1,026,897 1,117,096 1,169,829 1,257,127 1,397,239 1,520,841 1,635,627 1,700,104 1,655,922 1,721,779 Patron assistance (reference, information, computer) 207,724 226,429 185,436 207,305 240,287 291,960 347,085 397,287 530,364 537,807 Patron visits 1,460,551 981,637 1,098,146 1,221,982 1,264,972 1,317,689 1,321,309 1,403,995 1,572,138 1,752,838 Library cardholders 233,312 230,951 217,661 201,194 186,891 158,396 157,278 156,444 149,501 138,826 Programs offered 4,770 4,507 3,900 3,800 3,397 3,097 3,235 3,927 3,991 4,777 Program attendance 144,660 142,098 125,609 117,226 111,380 102,728 101,696 124,401 146,357 158,669 Hours of public internet usage 151,709 144,364 150,712 184,851 209,953 237,340 220,930 209,673 246,676 277,097 Community Services Programs Number of youth program participants 197,228 181,697 183,967 177,746 126,429 136,345 129,215 110,013 134,611 146,381 Number of youth program participants in recreation classes 7,957 8,500 13,026 10,136 13,897 10,906 9,213 10,231 10,125 16,332 Number of adult program sports teams 588 679 725 750 791 841 845 908 885 875 Number of park ranger contacts 641,320 382,310 278,599 327,893 263,765 233,308 275,014 232,132 187,000 208,176 Public Utilities Department Electric Utility: Number of meters 119,564 118,248 117,593 115,682 115,474 115,418 115,113 114,662 113,434 112,548 Megawatt-hours - sales 3,217,353 3,298,340 3,229,569 3,725,386 4,065,552 3,312,018 2,966,119 2,976,014 3,344,188 3,208,123 Megawatt-hours - purchased power 2,985,962 2,990,931 3,050,657 3,417,459 3,751,220 3,029,766 2,707,466 2,737,174 3,085,358 2,836,962 Megawatt-hours - owned generation 231,391 398,068 318,921 371,657 467,348 410,601 430,323 431,027 410,784 435,835 Water Utility: Number of meters 64,001 63,489 63,775 63,145 63,002 62,917 62,793 62,717 62,607 62,456 Millions of gallons sold 19,308 17,422 16,607 19,804 20,743 20,464 19,672 19,526 20,492 22,238 Millions of gallons purchased from Metropolitan Water 8,767 4,170 4,373 4,717 5,286 6,878 7,023 7,398 8,054 6,614 Millions of gallons pumped from water system wells 10,742 14,217 13,213 15,180 16,749 14,659 14,100 13,399 14,669 17,034 Anaheim Convention Center Number of events serviced 171 179 181 197 221 263 222 200 232 310 Number of attendees 960,000 925,000 954,000 986,000 1,020,000 1,070,000 1,059,000 935,000 944,000 917,000 Percentage of occupancy 68.0% 72.0% 59.0% 63.0% 63.0% 58.0% 62.0% 56.0% 68.0% 56.0% ARTIC Management1 Hours Open 7,118 7,118 Daily Ridership 2 Non-event day 4,364 Event day 5,199 1 The ARTIC management started operation on December 6, 2014. 2 Ridership survey is performed every two years. Sources: Various City departments 146 See accompanied independent auditors' report
CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function/Program Police Department Police Facilities 10 10 10 10 10 10 10 10 10 10 Motorized Equipment 256 260 260 250 247 247 242 242 250 266 Police Helicopters 3 3 2 2 2 3 3 3 4 4 Shooting Range 1 1 1 1 1 1 Communication/Radio Tower 1 1 1 1 Fixed Wing 1 1 1 1 Fire & Rescue Department Fire & Rescue stations 11 11 11 11 11 11 11 11 11 11 Training center 1 1 1 1 1 1 Fire & Rescue trucks, engines, and other vehicles 76 75 75 74 74 79 74 69 74 74 Public Works Streets (center lane miles) 584 585 584 584 578 578 578 578 588 633 Traffic signals 360 335 321 321 321 318 318 318 306 318 Sewers (miles) 578.43 578.17 578.13 577.60 575.52 575.52 573.63 570.44 569.60 568.30 Storm Drains (miles) 151.82 151.82 151.30 151.30 151.30 151.30 151.24 151.24 151.24 148.00 Parks 11 11 11 11 11 11 11 11 11 11 Community parks 15 15 15 9 7 7 7 7 7 7 Mini parks 23 23 23 21 21 21 21 21 21 21 Neighborhood parks 9 8 8 7 7 7 7 7 6 6 Special use parks 2 2 2 2 2 2 2 2 2 2 Golf Courses City Libraries 8 8 8 8 7 7 7 7 7 7 Branch libraries 1 1 1 1 1 1 1 2 2 Book mobiles 5 5 5 5 5 5 5 5 5 3 Museums/Historic properties 147 See accompanied independent auditors' report
CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years (continued) Fiscal Year 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function/Program Public Utilities Department Electric Utility: Transmission, 69 kV, circuit miles 90 90 88 87 86 87 86 90 80 80 Distribution, 12 kV and lower, circuit miles Overhead 401 402 408 414 420 426 428 440 446 446 Underground 709 708 693 680 666 662
- 656 658 617 625 Water Utility:
Active Wells 15 18 17 18 17 18 18 18 18 18 Reservoirs 13 14 14 14 14 14 14 14 13 13 Water Mains (miles) 754 753 753 753 753 753 753 752 753 750 Fire & Rescue Hydrants 7,835 7,842 7,832 7,840 7,832 7,816 7,812 7,802 7,805 7,751 Anaheim Convention Center Square footage available 1,370,000 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 7 5 5 5 5 5 5 5 5 5 ARTIC Management1 67,000 67,000 Terminal square footage 1,059 1,059 Parking stalls 18 18 Bus bays 24 24 Bike lockers 1 The ARTIC management started operation on December 6, 2014. Source: Various City Departments 148 See accompanied independent auditors' report
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CITY OF ANAHEIM Summary of Pension Obligation Funding Progress (in thousands) June 30, 2017 Market Value of Accrued Unfunded Funded Annual UL as a% Actuarial Valuation Date Assets (MVA) Liability Liabili!Y Ratio Covered Payroll of Payroll Miscellaneous $ 957,141 $ 1,361,536 $ 404,395 70.3% $ 120,748 334.9% Police Safety 534,056 749,345 215,289 71.3% 49,413 435.7% Fire Safety 302,285 423,670 121,385 71.3% 22,593 537.3% Total $ 1,793,482 $ 2,534,551 $ 741,069 70.8% $ 192,754 384.5% June 30, 2016 Market Value of Accrued Unfunded Funded Annual UL as a% Actuarial Valuation Date Assets (MVA) Liability Liability Ratio Covered Payroll of Payroll Miscellaneous $ 881,703 $ 1,295,862 $ 414,159 68.0% $ 117,138 353.6% Police Safety 490,402 708,804 218,402 69.2% 46,888 465.8% Fire Safety 281,087 403,743 122,656 69.6% 22,027 556.8% Total $ 1,653,192 $ 2,408,409 $ 755,217 68.6% $ 186,053 405.9% June 30, 2015 Market Value of Accrued Unfunded Funded Annual UL as a% Actuarial Valuation Date Assets (MVA) Liability Liability Ratio Covered Payroll of Payroll Miscellaneous $ 896,992 $ 1,217,106 $ 320,114 73.7% $ 108,154 296.0% Police Safety 498,226 666,459 168,233 74.8% 45,125 372.8% Fire Safety 289,122 387,567 98,445 74.6% 20,971 469.4% Total. $ 1,684,340 $ 2,271,132 $ 586,792 74.2% $ 174,250 336.8% 149 See accompanied Independent auditors' report
CITY OF ANAHEIM Summary of Other Postemployment Benefits (OPEB) Funding Progress (Amounts in thousands) UL as a
% of Annual Covered Actuarial Value of Accrued Unfunded Funded Covered Employee Assets (AVA) Liability Liability -AVA Ratios -AVA Payroll Payroll Actuarial Valuation Date
$ 89,953 $ 273,950 $ 183,997 32.8% $ 203,473 90.4%
July 1, 2017 79,787 271,243 191,456 29.4% 178,721 107.1% July 1, 2015 74,013 237,202 163,189 31.2% 167,871 97.2% July1,2013 150 See accompanied independent auditors' report
CI TY OF ANAHEIM Legend CITY HALL 200 S. ANAHEIM BLVD . FIRE STATIONS
** POLICE STATIONS LIBRARI ES PARKS
- CITY FACILITIES
-t- HELIPORT
- 1. HANSEN PARK 13. SAGE PARK 25 . LINCOLN PARK 37.0AK PARK 49. ENERGY FIELD 1300 S. Knott St. 1313LidoPI. 1440 E. Lincoln Ave. 6400 E. Noh! Ranch Rd. 1625 S. Ninth St.
- 2. TWILA REID PARK 14. STODDARD PARK 26. EDISON PARK 38. YORBA PARK 50. MAGNOLIA PARK 3100 W. Orange Ave. 90 1 S. Ninth St. 1145 Baxter St. 7600 E. La Palma Ave. 1515 Wright Cir.
- 3. SCHWEITZER PARK 15. MANZANITA PARK 27. BOYSEN PARK 39. OAK CANYON NATURE CENTER 51 . FRIENDSHIP PLAZA PARK 1260 Riviera St. 951 State College Blvd. 6700 Walnut Canyon Rd. 200 S. Anaheim Blvd.
238 S. Bel Air St.
- 4. MAXWELL PARK 16. LA PALMA PARK & STADIUM 28. JUAREZ PARK 52. ANAHEIM COVES
- 40. SYCAMORE PARK 962 S. Rio Vista St.
2660 W. Orange Ave. 1151 La Palma Park Way 841 S. Sunkist St. 8268 Monte Vista Rd.
- 29. PIONEER PARK 53. PAUL REVERE PARK
- 5. PETER MARSHALL PARK 17. PEARSON PARK 41 . CANYON RIM PARK 160 Guinida Ln.
400 N. Harbor Blvd. 2565 E. Underhill Ave. 7305 E. Canyon Rim Rd. 801 N. Magnolia Ave.
- 54. MIRALOMA PARK
- 6. BROOKHURST COMMUNITY PARK 18. LITTLE PEOPLES PARK 30. RIO VISTA PARK 42. RONALD REAGAN PARK 2600 E. Miraloma Way 2271 W. Cresent Ave. 220 W. Elm St. 201 N. Park Vista St. 945 S.Weir Canyon Rd.
- 55. CIRCLE PARK
- 7. JOHN MARSHALL PARK 19. JULIANNA PARK 31 . OLIVE HILLS PARK 924 S.Park Cir.
309 E. Juliana St. 4200 Nahl Ranch Rd. 43. ROOSEVELT PAR K 2066 Falmouth Ave. 8160 E.Bauer Rd . 56 . CORAL TREE PARK
- 8. MODJESKA PARK 20. GEORGE WASHINGTON PARK 32. RIVERDALE PARK 44 . ROSS PARK 1711 S. Belmar Ln.
250 E. Cypress St. 4545 E. Riverdale Ave. 1280 W. Santa Ana St. 1331 S. Nutwood St.
- 57. ANAHEIM WETLANDS PARK
- 21. COLONY SQUARE 33. PERALTA CANYON PAR K 8500 E. La Palma Ave.
- 9. CLARA BARTON PARK 115 N. Pinney Dr. 45. COTTONWOOD PAR K 1926 Clearbrook Ln. 210 E. Lincoln Ave.
853 W. Cott onwood Cir. 58. DELPHI PARK 2~WALNUTGROVEPARK 1211 N. MAGNOLI A AVE.
- 10. CHAPARRAL PAR K 34. PELANCONI PARK 46. DEER CANYON PARK 1770 E. Broadway 905 S. Anaheim Blvd . 222 S. Avenida Margarita Mohler & Santa Ana Rd .
- 23. CITRUS PARK 35. IMPERIAL PARK 47. FOUNDERS PARK 11 . WILLOW PARK 104 S. Atcl1ison St.
1625 W. Crone Ave. 450 S. Imperial Hwy. 400 N. West St.
- 24. PONDEROSA PARK 2100 S. Hasler St. 36. EUCALYPTUS PARK 48. COLONY PARK
- 12. PALM LANE PARK 501 E. Water St. Date: 1019/201 B 1595 Palais Rd. 100 N. Quintana Dr. 4744 151
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