ML23045A200
| ML23045A200 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 06/30/2022 |
| From: | City of Anaheim, CA |
| To: | Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML23045A230 | List: |
| References | |
| Download: ML23045A200 (1) | |
Text
Year Ended June 30, 2022 Annual Comprehensive Financial Report
~ H~lilf Anaheim, California Prepared by the Finance Department
Trevor O'Neil Mayor Pro Tern District 6 Jose Diaz Council Member District 1 City Council Gloria Ma'ae Council Member District 2 Jose F. Moreno Council Member District 3 Anaheim, California Avelino Valencia Council Member District 4 Stephen Faessel Council Member District 5
CITY OF ANAHEIM Annual Comprehensive Financial Report Table of Contents June 30, 2022 INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting Organization Chart Administrative Personnel FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis (Unaudited)
Basic Financial Statements Government-wide Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - Housing Authority Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Position (Deficit) - Fiduciary Funds Statement of Changes in Fiduciary Net Position (Deficit) - Fiduciary Funds Notes to Financial Statements Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios Schedule of Pension Plan Contributions Schedule of Changes in the Net Other Postemployment Benefits (OPEB) Liability and Related Ratios Schedule of Other Postemployment Benefits (OPEB) Plan Contributions Combining Individual Fund Statements and Schedules Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds by Fund Type Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds by Fund Type Combining Balance Sheet - Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Balance Sheet - Nonmajor Debt Service Funds Statement of Revenues, Expenditures and Change in Fund Balance - Nonmajor Debt Service Funds Schedule of Revenues, Expenditures and Change in Fund Balance ~ Budget and Actual - Debt Service Funds Page 1
7 9
10' 13 19 41 43 45 47 48 49 50 51 52 54 55 58 59 61 123 127 129 130 133 134 135 136 137 141 142 143
Annual Comprehensive Financial Report Table of Contents June 30, 2022 Combining Balance Sheet - Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Nonmajor Capital Projects Funds Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Budgetary Basis Actual - All Capital Projects Funds Internal Service Funds Combining Statement of Net Position - Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds Fiduciary Fund Combining Statement of Fiduciary Net Position - Custodial Funds Combining Statement of Changes in Fiduciary Net Position - Custodial Funds STATISTICAL INFORMATION (Unaudited)
Net Position by Component - Last Ten Fiscal Years Changes in Net Position - Last Ten Fiscal Years Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years General Government Tax Revenues By Source - Last Ten Fiscal Years Assessed Value and Estimated Actual Value of Taxable Property-Last Ten Fiscal Years Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years Principal Property Tax Payers - Current Year and Nine Years Ago Property Tax Levies and Collections - Last Ten Fiscal Years Ratios of Outstanding Debt by Type - Last Ten Fiscal Years Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years Direct and Overlapping Governmental Activities Debt - As of June 30, 2022 Legal Debt Margin - Last Ten Fiscal Years Pledged-Revenue Coverage - Last Ten Fiscal Years Demographic and Economic Statistics - Last Ten Fiscal Years Principal Employers - Current Year and Nine Years Ago Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years Operating Indicators by Function - Last Ten Fiscal Years Capital Assets Statistics by Function - Last Ten Fiscal Years OTHER INFORMATION (Unaudited)
Summary of Pension Liability Funding Progress Summary of Other Postemployment Benefits (OPEB) Funding Progress City of Anaheim Map CITY OF ANAHEIM Page 144 145 146 153 154 155 159 160 164 165 167 168 169 170 171 172 173 174 175 176 177 178 179 181 182 183 184 186 191 192 193
Introductory Section Anaheim, California
\\
lntroductorv Section
December 22, 2022 City of Anaheim, California Finance Department To the Honorable Mayor and City Council City of Anaheim Anaheim, California In accordance with the Charter of the City of Anaheim (City), please accept submission of the Annual Comprehensive Financial Report (ACFR} for the fiscal year ending June 30, 2022. Responsibility for the accuracy of the data, completeness, and fairness of the presentation, including all disclosures, rests with the City. We believe the data included is accurate in all material aspects, and is presented in a manner designed to fairly set forth the financial position and operational achievements of the City, as measured by the financial activity of its various funds. In addition, all disclosures necessary to enable the reader to gain maximum understanding of the City's financial activities have been included.
The City Charter requires an annual audit of the City's financial statements by an independent Certified Public Accountant. Accordingly, this year's audit was completed by KPMG LLP. In addition to meeting the requirements set forth in the City Charter, the audit was also designed to meet the requirements of the Single Audit Act Amendments of 1996 and the Uniform Guidance. The auditors' report on the basic financial statements is included in the financial section of this report. The auditors reports related specifically to the single audit are presented as a separate document.
Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the City's basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
CITY OF ANAHEIM CITY OF ANAHEIM PROFILE The City of Anaheim is located in northwestern Orange County, approximately28 miles southeast of downtown Los Angeles and 90 miles north of San Diego. The City lies on a coastal plain, which is bordered by the Pacific Ocean to the west and the Santa Ana Mountains to the east. The City is the oldest and most populous city in Orange County.
Anaheim is home to the Disneyland Resort, the Anaheim Convention Center, the Anaheim Regional Transportation lntermodal Center (ARTIC}, and two major league professional sports teams including the Angels Major League Baseball team, which utilizes Angel Stadium of Anaheim, and the Anaheim Ducks National Hockey League team, which utilizes the Honda Center.
The City of Anaheim was founded and incorporated in 1857. In June 1964, the local voters approved a City Charter. The City operates under the Charter with a Council-Manager form of government. The six City Council members are elected to four-year terms in alternate slates every two years. In February 2016, the City Council unanimously adopted the city's first districting map and election sequence, changing the election of council members from an at-large system to a by-district system as of the November 2016 election; the Mayor continues to be elected at-large.
The Mayor presides over meetings of the City Council and has one vote.
The City Council appoints the City Manager, who heads the executive branch of government, implements City Council directives and policies, and manages the administrative and operational functions through the various departmental heads, who are appointed by the City Manager.
City full-time employees numbered 2,031 in 2022, of whom 617 were assigned to the Police Department and 330 to Fire & Rescue. The latter has eleven stations; the City enjoys a Class One fire insurance rating, the highest rating possible.
Anaheim, with a population of 341,245 in 2022, 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 24,000 active business licenses, of which over 17,000 are businesses operating within the City's boundaries.
The City provides a wide range of municipal services. Core services include public safety, parks, community centers, libraries, electric, water and sanitation utilities, public works, planning and building, and convention center operations.
The unemployment rate in Anaheim for June 2022 was 2.9%, while the national average was at 3.6% and the state average at 4.0%.
ECONOMIC CONDITION AND OUTLOOK The COVID-19 pandemic took a toll on the city, with reductions to city services due to restrictions that prevented tourists and residents from enjoying the many amenities that the city has to offer. As the pandemic has subsided, the City of Anaheim has experienced a strong recovery.
For the fiscal year ended June 30, 2022, Transient Occupancy Tax and Sales and Use Tax revenues have exceeded anticipated performances.
Amazingly, these sources of revenue surpass pre-pandemic levels, proving that the City of Anaheim is stronger than ever. The city's recovery speaks to the value and strength of our core revenue generators and Anaheim as a premier visitor destination.
California GDP has effectively made a complete recovery from the pandemic. While the state has regained just 72% of the jobs lost from the beginning of the pandemic, California is adding jobs at a faster rate than the national average and that is expected to continue in 20221.
Technology, logistics and defense sectors are expected to help drive this growth in the labor market. Although California still has not seen international tourists return to the state, domestic tourists have more than been able to make up for that loss2* Pent-up demand from the pandemic has led tourism, especially in Orange County and Anaheim to return to 2019 levels. Passenger counts at John Wayne Airport are at pre-pandemic levels and hotel occupancy has nearly recovered.
Home prices in California and Orange County have soared as inventory is at record lows and demand remains high. Momentum for new development, especially industrial and apartment buildings, continues to increase. Some of the biggest planned developments in Orange County, Disneyland Forward and ocV!BE, will be in Anaheim. Orange County has been fortunate to recover quickly and the economy remains strong and is expected to continue that way.
During the pandemic, the City of Anaheim continued to dedicate itself to recovery by investing in neighborhoods and continuing to provide valued public services. The Community Care Response Team continued to address homelessness throughout the city. The Housing and Community Development Department created 124 units of affordable housing for homeless seniors, veterans, and those experiencing mental health issues. The Anaheim Public Library developed STEAM Adventures, inspiring kids in the areas of Science, Technology, Engineering, Art, and Math.
CITY OF ANAHEIM Public safety remained a high priority with the installation of cameras along Beach Boulevard and Anaheim Police Department's implementation of an upgraded 911 system that sends callers text messages with information on the status of their service call. The Public Works Department continued efforts to improve traffic signals, streets and neighborhoods, through different rehabilitation programs along East Street, Orange Avenue, Ball Road and the Lotus Neighborhood.
MAJOR INITIATIVES With direction from the Mayor and City Council, City management identifies the priorities that shape the path for Anaheim's future. City initiatives are reevaluated regularly, and new items are frequently added to ensure that City efforts are consistent with the priorities of our policy body and the community. The City strives each year to better fulfill its mission of delivering outstanding municipal services that are responsive to our entire community by continuing its tradition of fostering innovation, ingenuity, and opportunity in its operations. This helps achieve the primary goals of focusing on ensuring public safety in our communities, combatting homelessness, increasing community engagement and outreach, investing in our neighborhoods, and enhancing our city's infrastructure. City staff is dedicated to seeking innovative and efficient ways to conduct business to ensure that Anaheim remains a vibrant community for the years to come.
ENSURING PUBLIC SAFETY: Public safety is one of the City's top priorities with the Anaheim Police Department (APD} and Anaheim Fire & Rescue leading the charge and delivering the highest level of service focused on the safety of our residents, visitors and businesses. APD is increasing their recruitment efforts and offering incentives in order to accelerate the hiring of up to 40 new Police Officers to support their public safety mission.
Community Engagement -
APD will continue to expand relationships to maintain _a safe community and increase community trust and collaboration with businesses, faith-based organizations, non-profits, schools, and residents. In an effort to help residents and businesses with crime prevention, APD plans to refocus its efforts on the Neighborhood Watch program throughoutthecity, with the goal ofadding ten new neighborhoods to the program. APD will also proactively impact crime through innovative solutions including intervention through engagement, proactive and strategic enforcement, problem-solving quality of life issues, intelligence-driven and collaborative efforts, through l The Beacon Outlook California. Beacon Economics. Spring 2022. Tanner Osman, PhD.
2 UCLA Anderson oc Regional Economic Outlook. April 27, 2022. https://youtube.com/watch?v=cfl_PeMBhf4 2
education and awareness, judicious investigations, and the apprehension of offenders.
In-House Emergency Medical Services -Anaheim Fire & Rescue will fully implement the Anaheim Ambulance Transportation Program, which will provide cost savings to the city, increase careers in fire service through dedicated training and education, and ensure excellent service and stability to Anaheim residents and visitors.
INVESTING IN OUR NEIGHBORHOODS: An investment and commitment to individuals, families and the community and improving quality of life for our residents continues to be a priority for the city.
Rebuild Beach Initiative -
The City's renewed effort to address the overall quality of life on Beach Boulevard will continue with increased crime enforcement, including the addition of more public safety cameras, proactive code enforcement, business watch, neighborhood involvement, strategic acquisitions and additional investments to reshape and improve Beach Boulevard.
Increasing Affordable Housing-The City will continue to advance affordable housing, which includes motel conversions to increase the amount of extremely low-income units. Some upcoming projects include the motel conversion of the Tampico Motel and the Studio 6 Motel to permanent supportive housing.
Providing Senior Services -
There are many programs and services aimed at assisting the City's senior residents, including Anaheim's Active Older Adult program which provides a wide array of programs and services that benefit the health and well-being of Anaheim's seniors. City housing assistance, through the Senior Safety Net Program, helps seniors facing hardships meet their housing costs by providing counseling, case management, emergency and rental assistance. The Senior Mobility Program also provides low cost transportation services to Anaheim senior citizens and will be expanded to run seven days a week, with additional lines to meet the needs of residents.
Improving Recreational Spaces -
Improving the quality and appearance of city parks, recreational facilities, and athletic fields ensures that these public spaces remain vibrant, safe, inviting, and accessible. Projects include new playground equipment at Rio Vista Park and Center Greens as a result of grants received from KABOOM!, a nonprofit organization whose mission is to create great play spaces through the participation and leadership of communities.
CITY OF ANAHEIM Providing Youth Programs -
The City will continue to provide opportunities to assist Anaheim youth through programs like Project S.A.Y. (Support Anaheim's Youth}, S.T.A.R.S. (Study-Time, Arts, Recreation, and Sports} and Fun on Wheels. Seasonal day camp programs are offered in a variety of topics including CampVenture for children ages 6-12 with opportunities for outdoor activities, crafts, games and sports, and the complementary TeenVenture program, a counselor in training course for teens ages 13-16. Summer and Winter Reading Programs will continue to be offered at Anaheim libraries with storytimes, STEAM programs, teen volunteer opportunities, and cultural celebrations.
OUTREACH TO OUR COMMUNITY: Anaheim is dedicated to providing services and resources to the community, including residents who face homelessness.
Fostering Street Exits-The Community Care Response Team (CCRT} responds to noncriminal, non-emergency homeless calls for service in an effort to shift from a police response to a team of outreach workers, nurse practitioners, mental health clinicians and plain-clothed safety officers. The CC RT will continue to provide resources, while helping homeless neighbors off the streets and directly into housing.
Addressing Mental Health -
The City has created the Be Well OC pilot program to provide a mobile crisis response program that is intended to strengthen the City's approach to mental health calls for service by diverting calls away from public safety to mental health workers and case managers.
IMPROVING OUR INFRASTRUCTURE: Maintaining an Anaheim that residents are proud to call home is a priority for Anaheim.
Sidewalk, Roadways and Infrastructure Improvements -
Street rehabilitation projects provide for a well-maintained and efficient transportation network. Planned projects include: 1,100,000 square feet of pavement slurry sealed, 1,312,000 square feet of pavement replaced, and 97,000 square feet of sidewalk replaced. Traffic signal coordination/upgrades at Euclid Street from Glenoaks Avenue to Crescent Avenue will improve traffic flow and reduce traffic congestion, while neighborhood improvement projects such as the one planned for the Sabina neighborhood will focus on pavement structure, improving the ride quality and safety of residential streets, enhance the walkability of sidewalks, and beautify the neighborhood.
Enhancing Electric and Water Service Reliability and Resiliency-Anaheim Public Utilities is strategically replacing and upgrading 3
electric infrastructure to strengthen system reliability. Operational investments include adding wildfire cameras, upgrading technology software and hardware systems, and continuing to install automation of equipment. Capital investments include undergrounding overhead lines, replacing direct buried cable with conduit systems, replacing and sizing transformer replacements to meet future needs, and extending new circuits to improve operational flexibility during outages and increase capacity.
By replacing aging water utility infrastructure, Anaheim Public Utilities is able to increase water system reliability, reduce maintenance costs, reduce service interruptions and increase system efficiency. Operational strategies include prioritizing projects through an asset management system, exercising valves to optimize operational control, and implementing automation at various locations. Capital investments include replacing aging water mains, installing groundwater treatment to return lower cost wells to service, and upgrading older pump stations and regulating stations.
ENCOURAGING BUSINESS GROWTH: The City is dedicated to creating and maximizing resources to invest in businesses, strengthen the city's economy and promote a well-qualified workforce._
Supporting Major Developments -
The Planning & Building Department leads the city's efforts to entitle major development projects including ocV!BE and Disneyland Forward. The successful management and implementation of these projects will promote vibrant destinations for the city's residents while also bringing more visitors to Anaheim.
Increasing the Number of Large Conventions and Events -
The City is working to maximize the number of large conventions and events brought to Anaheim and looks forward to welcoming back VidCon, D23, Solar Power International, Natural Products Expo West, and NAMM who will come together to meet face to face once again.
Attracting New Businesses -
With the creation of the new Economic Development Department, the City is focusing on growing our existing businesses while also creating policies and programs aimed at attracting new businesses and development opportunities, including strategic acquisitions along priority corridors.
Amid the strong recovery, the City of Anaheim is looking to the future by focusing on core strategies of public safety and neighborhoods, while also addressing current and future obligations.
CITY OF ANAHEIM FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
This report consists of management's representations concerning the finances of the City. As a result, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects.
BUDGETARY CONTROLS:
The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, special revenue funds, debt service funds, capital projects funds, and all the proprietary funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the departmental level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbrances generally are re-appropriated as part of the following year's budget.
RELEVANT FINANCIAL POLICIES:
Through sound fiscal management, the City of Anaheim positions itself to provide a positive atmosphere for economic development and the flexibility to strategically address budgetary challenges that result from fluctuations in the local, national, and global markets. As ofJune 30, 2022, the City's General Fund has a spendable, unassigned fund balance of $52 million. Excluding the long-term interfund payable of $33 million, the unreserved fund balance amount totaled $85 million, which represents 21% of the General Fund total fiscal year 2021-2022 expenditures.
Traditionally, the policy has been to maintain General Fund reserves at a minimum of 7 to 10% of expenditures. The City has a long-standing practice of recognizing and reserving for known and anticipated liabilities. The City's compensated absences and self-insurance liabilities 4
is 94% funded. Additionally, the City has established an irrevocable trust for other postemployment benefits (OPEB) and continues to make the annual required actuarial determined contribution (ADC) to ensure this future liability is fully funded.
LONG-TERM FINANCIAL PLANNING:
On June 22, 2022, the City Council adopted the fiscal year 2022-2023 budget. Additionally, as a companion to approving the budget plan, a five-year Capital Improvement Plan was presented to the City Council.
The five-year plan links anticipated expenditures for infrastructure development with community needs and desires, and provides a citywide perspective of recommended projects and proposed funding sources. The Capital Improvement Plan was finalized in June 2022, and totaled $877 million for the five-year fiscal period ending June 30, 2027. The five-year Capital Improvement Plan has been submitted and annually updated, 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 annual comprehensive financial reportforthefiscal year ended June 30, 2021. This was the 46th consecutive year that the City has achieved this prestigious award (fiscal years ended June 30, 1976 through 2021). In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive 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 CITY OF ANAHEIM current annual comprehensive 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.
ACKNOWLEDGMENTS 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 Ashleigh E. Aitken, Council Member Jose Diaz, City Manager James Vanderpool, and 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, James Vanderpool City Manager
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Deborah A. Moreno Finance Director/City Treasurer 5
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Government finance Officers Association Certificate of Achieve1nent for Excellence in Financial Reporting Prcscmcd to City of Anaheim California For its Annual Comprehensive Financial Report For the Fiscal Y car Ended ltlne 30, 2021
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l~x<<.utivc Diri:clar/CJID 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 Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021.
The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards.
Such reports must satisfy both 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 report continues to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA.
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Accounting Employment Purchasing Benefits Cashiering Employee Relations Information Organizational Services Development Risk Management Water Services Engineering Energy Operations Resources Fleet and Facility Financial Services Management Construction Services Services Electric Services Financial and Administrative Services Grove Operations ARTIC Operations 9
Administrative Personnel As of June 30, 2022 City Manager Assistant City Manager Chief of Police City Attorney City Clerk Housing & Community Development Director Community Services Director Convention, Sports & Entertainment Executive Director Economic Development Director Finance Director/City Treasurer Fire Chief Human Resources Director Planning & Building Director Public Utilities General Manager Public Works Director CITY OF ANAHEIM James Vanderpool Gregory A. Garcia Jorge Cisneros Robert Fabela Theresa Bass Grace Ruiz-Stepter Sjany Larson-Cash Thomas Morton Sergio M. Ramirez Deborah A. Moreno Patrick Russell Linda N. Andal Ted White Dukku Lee Rudy Emami 10
Financial Section Anaheim, California Financial Section
KPMG LLP Suite 1500 550 South Hope Street Los Angeles, CA 90071-2629 Independent Auditors' Report Honorable Mayor and City Council City of Anaheim, California:
Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anaheim, California (the City),
as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and Housing Authority Fund for the year then ended in accordance with U.S. generally accepted accounting principles.
Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a 13
guarantee that an audit conducted in accordance with GMS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GMS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis and the required supplementary information as listed in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GMS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining individual fund statements and schedules as listed in the accompanying table of contents are presented for 14
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purposes of additional analysi*s and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GMS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory, statistical, and other information sections but does not include the basic financial statements and our auditors' report thereon.
Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2022, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
Los Angeles, California December 22, 2022 15
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Management's Discussion and Analysis (Unaudited)
As management of the City of Anaheim (City), we offer readers of the City's 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, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and the City's basic financial statements in the financial section of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: l) government-wide financial statements, 2) fund financial statements, and 3) notes to financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
COMPONENT'S OF ftlE ANNUAL FINANCIAL R.EPORl
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Detan Government-wide financial statements a re com prised of the Statement of Net Position and the Statement of Activities. These two statements are designed to provide readers with a broad overview of the City's finances utilizing the full accrual method of accounting, in a manner similar to a private-sector business. Under the full accrual method of CITY OF ANAHEIM accounting, transactions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g. uncollected revenues and accrued but unpaid interest expense).
The Statement of Net Position presents information on all of the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources, including capital assets and long-term liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. Functional activities are highlighted in this statement, whereby direct and indirect functional costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support.
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, Police, Fire & Rescue, Housing & Community Development, Economic Development, Planning & Building, Public Works, Community Services, Public Utilities (street lighting), Convention, Sports and 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 and entertainment venues (Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim) operations, and the Anaheim Regional 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.
The government-wide financial statements can be found on pages 41-43 of this report.
19
I L
Fund financial statements focus on current available resources and are organized and operated on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, the governmental funds financial statements utilize the modified accrual basis ofaccounting, which focuses on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements.
Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 19 individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, and the Housing Authority Special Revenue Fund which are considered to be major funds and can be found on pages 45-46 and 48 of this report. Data for the remaining 17 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non major governmental funds is provided in the form of supplementary combining statements on pages 133-136, 141-142, and 144-145 of this report.
The City adopts an annually appropriated budget for all governmental and proprietary funds. Budgetary comparison statements for the General Fund and the major special revenue fund (Housing Authority) are required to be presented; these schedules are included in the basic financial statements on pages 50-51 of this report. Additionally, budgetary schedules for the other _non major governmental funds have been provided to demonstrate compliance with the budget and can be CITY OF ANAHEIM found as part of other supplementary schedules on pages 137-140, 143, and 146-149 of this report.
Proprietary funds of the City include the Enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses its enterprise funds to account for its electric, water and sanitation utilities, golf courses, convention, sports and entertainment venues and ARTIC operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its general benefits and insurance, motorized equipment, information services, and municipal facilities maintenance functions.
Because these services predominantly benefit governmental rather than business-type functions, they have been included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for all of the enterprise funds, which are considered to be major funds of the City. Conversely, all of the internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.
The proprietary funds financial statements can be found on pages 52-57 of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs.
The City maintains two different types of fiduciary funds. The Private-Purpose Trust Fund is used to account for the assets and liabilities held in trust for the Successor Agency to the Redevelopment Agency (Successor Agency); the Custodial Fund is used to account for funds held in a custodial capacity for the benefits of others.
The fiduciary fund financial statements can be found on pages 58-59 of this report.
Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages61-120 of this report.
2(
Required Supplementary Information presents the required supplementary information for pension and its related ratios, the Other Postemployment Benefits (OPEB) and its related ratios. This information can be found on page 123-130 of this report.
The combining and individual fund statements and schedules present combining individual fund statements referred to earlier in connection with nonmajor governmental funds and internal service funds. Also included are the budgetary comparison Schedules of Revenues, Expenditures and Changes in Fund Balances for all nonmajor special revenue funds, all debt service funds, and all capital projects funds.
These statements and schedules can be found on pages 133-160 of this report.
FINANCIAL HIGHLIGHTS (Amounts in thousands)
The City's total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the end of the current fiscal year by $2,119,642.
The City's governmental activities represent $871,486 (41%) and the business-type activities represent $1,248,156 (59%) of the City's total net position.
The City's net position has a net increase of $261,557 (14%} as a result of the current fiscal year's operations. The net position of the City's governmental activities increased by $193,717 (29%) and the business-type actiyities net position increased by $67,840 (6%}.
The City's restricted net position of $358,787 represents amounts available for ongoing programs and obligations with external restrictions.
The City's total capital assets, net of accumulated depreciation, increased by $30,887. Capital assets in the City's governmental activities decreased by $5,767 (less than 1%) and business-type activities capital assets increased by $36,654 (2%) during the current fiscal year.
The City's total long-term debts increased by $113,852 (6%) during the current fiscal year; of this amount, long-term debts in the City's governmental activities decreased by $13,436 (2%}, and business-type activities increased by $127,288 (11%).
The City's total other long-term liabilities decreased by $375,636 (32%) du ring the current fisca I year; of th is amount, other long-term liabilities in the City's governmental activities decreased by CITY OF ANAHEIM
$289,778 (33%), and business-type activities decreased by $85,858 (28%).
At the close of the current fiscal year, the City's governmental funds reported a combined fund balance of $578,460, an increase of $101,171 in comparison with the prior fiscal year. Approximately 38% of this amount or $218,380 is available for spending at the City's discretion (total of committed, assigned and unassigned fund balances).
At the end of the current fiscal year, unrestricted fund balance (total of committed, assigned and unassigned fund balance) for the General Fund was $166,390 or 40% of total General Fund expenditures. Unassigned fund balance was $52,351 or 13% of total General Fund expenditures. Excluding the long-term interfund payable of $33 million, reserves were $85,351 or 21% of General Fund expenditures.
The City received $53,300 in June 2022, the final allocation of the
$107,000 federal assistance through the federal American Rescue Plan (ARP). These funds were allocated to the General Fund to partially offset revenue losses due to COVID-19 pandemic closures.
The City received various COVID-19 related fundings during the fiscal year. Emergency rental assistance totaling $31,215, of which
$9,019 was provided by the U.S. Department ofTreasury and $22,196 from the State of California (State) allocation. These funds provided assistance to eligible families experiencing difficulty in meeting rental commitments impacted by the COVID-19 Pandemic. At fiscal year end, $9,154 was unspent. Emergency Solution Grant (ESG) totaling $5,841 was provided by the U.S. Department of Housing and Urban Development (HUD) for additional homeless shelter and prevention assistance. The COVID-19 Pandemic Relief for Utility Customers Arrearages Programs administered through the State provided a total of $6,225 to apply bill credits to eligible customer accounts including electric, water and wastewater services. Of this total, $4,757 provided by the State was credited to electric customers; accounts; $1,468 provided by the State Water Resources Control Board; of which $1,077 was credited to customers' water accounts and $334 to the wastewater accounts.
The unallocated fund of $57 was remitted back to the State Water Resources Control Board.
21
CITY OF ANAHEIM NET POSITION JUNE 30, 2022 AND 2021 Governmental Activities Business-ty:ee Activities Total Government 2022 Current and other assets 885,463 Capital assets, net 1,459,009 Total assets 2,344,472 Deferred outflows of resources 143,113 Total assets and deferred outflows of resources 2,487,585 Current liabilities 154,064 Long-term liabilities less current portion 1,211,092 Total liabilities 1,365,156 Deferred inflows of resources 250,943 Total liabilities and deferred inflows of resources 1,616,099 Net position:
Net investment in capital assets 1,147,895 Restricted 277,443 Unrestricted (553,852)
Total net position 871,486
- As restated due to implementation of Governmental Accounting Standards Board Statement No. 87 At the end of fiscal year 2022, the City's net position totaled $2,119,642 reflecting a net increase of $261,557 or 14% from the prior fiscal year.
Current and other assets, including cash, cash equivalents and investments, restricted cash equivalents and investments, receivables, prepaid items, land held for resale, lease and notes receivable, totaled
$1,752,425 had an increase of $209,043 {14%) as compared to the prior fiscal year; of this amount governmental activities increased by $69,174 and business-type activities increased by $139,869.
Unrestricted cash, cash equivalent and investments increased by $51,027 {8%) of which governmental activities had an increase of $33,347 and business-type activities had an increase of $17,680. The City experienced a strong recovery after a thirteen-month long closure of the Anaheim Resort, hotels, and the entertainment venues impacted by the COVID-19 Pandemic.
Transient occupancy taxes (TOT), sales taxes, and demands for City services such as convention, sports and entertainment events, utilities, construction services, police services and community recreational and sporting classes have all increased as compared 2021*
2022 2021*
2022 2021*
816,289 866,962 $
727,093 $
1,752,425 1,543,382 1,464,776 2,211,740 2,175,086 3,670,749 3,639,862 2,281,065 3,078,702 2,902,179 5,423,174 5,183,244 143,214 46,223 41,802 189,336 185,016 2,424,279 3,124,925 2,943,981 5,612,510 5,368,260 192,740 169,779 157,746 323,843 350,486 1,516,874 1,485,343 1,444,743 2,696,435 2,961,617 1,709,614 1,655,122 1,602,489 3,020,278 3,312,103 36,896 221,647 161,176 472,590 198,072 1,746,510 1,876,769 1,763,665 3,492,868 3,510,175 1,138,182 1,091,868 1,074,102 2,239,763 2,212,284 260,160 81,344 70,372 358,787 330,532 (720,573) 74,944 35,842 (478,908)
(684,731) 677,769 $
1,248,156 $
1,180,316 $
2,119,642 1,858,085 to fiscal year 2021. Higher cash collection from taxes and City services contributed to the increases in cash, cash equivalent, and investments.
Restricted cash, cash equivalent and investments increased by
$123,586 {26%). Governmental activities had a net increase of
$620. An increase of $36,165 for the Lease Payment Measurement Revenue (LPMR) bonds is due to increase in the revenue bases (see note 10 on page 88 of the notes to the financial statements for further discussion of LPMR); an increase of $7,577 is from the unspent homeless shelter and emergency rental assistance grants; and an increase of $7,201 is from the unspent ambulance and technology equipment loan proceeds. Offsetting the increases is a decrease of $50,000 return of the Stadium sale deposit. In May 2022, the Anaheim City Council unanimously voted to void the 2020 Agreement to sell Angel Stadium of Anaheim. Business-type activities had an increase of $122,966. The increase is primarily due to bond proceeds from the issuances of the 2022 Revenue bonds for the Electric Utility ($132,147) and Water Utility ($50,000),
partially offset by the spending down of bond funds for capital projects which included $25,779 in Electric Utility, $17,152 in Water Utility, $378 in Sanitation Utility, and $6,912 in Convention, Sports and Entertainment Venues. The Electric Utility also paid $4,180 for decommissioning liability and $375 for San Juan Reclamation liability from the restricted cash accounts during the fiscal year.
Accounts receivable increased by $36,760 (40%). The increases in governmental activities of $13,962 were primarily attributable to increases in TOT receivable ($10,706), Anaheim Tourism Improvement District (ATID) special assessment receivable
($1,357), and an increase of $1,532 of receivable from police services provided for entertainment and special events. These increases are primarily due to taxes and demand for city services resuming to normal operation following removal of COVID-19 pandemic related restriction orders. Paramedic services receivable had an increase of $2,963 due to increased emergency medical service transports and the time to process the claims and collection of payments. Offsetting the increases is the decrease of a one-time receivable of $2,366 from a general liability insurance reimbursement in the prior-fiscal year. Business-type activities had an increase of $22,798. The Water Utility had an increase of $15,832 in construction cost reimbursement related to the Per-and Polyfluoroalkyl Substances (PFAS) treatment facilities; the Convention, Sports and Entertainment Venues had an increase of
$4,975 in receivable due from event billing customers and various convention services. The increase is due to the Convention Center reopening for events following the COVID-19 closure.
Due from Other Governments increased by $7,724 (18%) primarily due to an increase in sales tax receivable of $4,422 reflecting higher sales tax revenues at the end of the fiscal year; an increase of $1,609 in receivable is due from the State for a newly approved cost reimbursement through the Ground Emergency Medical Transportation (GEMT) program; and an increase of $2,051 in receivable for the Community Development Block Grant (CDBG)
($856) and ESG grant ($1,195) expense related reimbursements.
Prepaid and other assets decreased by $20,257 (14%) reflecting a reduction of $20,280 in prepaid purchased power with the corresponding increase to the cost of purchased power expense when the power was purchased during the fiscal year in the Electric Utility.
Notes receivable increased by $7,804 (12%). The Housing Authority provided affordable housing development loans for the Miraflores Apartment project ($6,026), the Anaheim Center of Hope CITY OF ANAHEIM Apartment project ($2,000) and the Studio 6 Model ($1,005) during the fiscal year; offset by a decrease in loan payments received.
The City's capital assets, net of accumulated depreciation, increased by
$30,887 (1%). Additional information about changes to the City's capital assets can be found on pages 34-35.
Deferred outflows of resources, including deferred charges on refunding bonds, deferred items related to pension and Other Postemployment Benefits (OPES), totaling $189,336 increased by $4,320 (2%). The increases are primarily due to the following:
Net change of deferred pension related items decreased by
$10,308 which included a decrease of $12,603 from current fiscal year amortization of the deferred items related to pension, and a combined decrease of $3,924 in deferred pension related items per actuarial plan valuation, primarily due to the difference between projected and actual plan experience; offset the decreases by an increase of $6,219 in pension contribution subsequent to measurement date.
Net change in deferred OPES related items increased by $12,579 reflecting an increase of $17,226 per plan actuarial valuation, primarily due to changes in assumption; offset the increase by a decrease of $4,647 of current year amortization.
Deferred charges on refunding bonds had an increase of $2,049 (5%). An increase of $8,337 is due to issuances of Electric Utility, Water Utility and the Convention Center Expansion refunding bonds; offset the increases by the current year amortization of
$6,288.
Current liabilities, including accounts payable, wages payable, interest payable, current portion of long-term debt, current portion of other long-term liabilities, deposits and unearned revenues, totaled $323,843 and decreased by $26,643 (8%). The decreases are primarily due to the following:
Deposit payable decreased by $50,173 primarily due to $50,000 return of deposit for the Stadium sale.
Current portion of the long-term debt increased by $3,994; Accounts payable increased by $13,996 (12%) mainly due to timing of scheduled disbursements to suppliers and construction contractors.
The City's long-term liabilities, less current portion, decreased by $265,182 (9%). Additional information about changes to the City's long-term liabilities can _be found on pages87-112.
Deferred inflows of resources, totaling $472,590 increased by $274,518 (139%). The increases include the following:
Deferred items related to pension increased by $235,103. This increase is primarily due to an increase of $319,027 from plan actuarial valuation primarily due to the difference between projected and actual earnings resulting from favorable plan investment earnings and the difference between expected and actual experience; offset the increases by the decrease of $83,924 in current year amortization.
Deferred items related to OPEB increased by $47,578 primarily due to the increase of $66,156 between expected and actual experience, and the increase between projected and actual investment earnings; offset by a decrease of $18,578 in current year amortization.
Regulatory credits had an increase of $1,426 reflecting a net change of amount collected from Utilities customers ($41,426) reduced by amount recognized as Rate Stabilization Account revenues ($40,000) from the Electric and Water Utilities during the fiscal year. Additional information about regulatory credits can be found on note l of the notes to the financial statements, on page 69.
Deferred charge on refunding bonds increased by $5,595 primarily due to issuance of the Electric revenue refunding bonds ($6,538) offset by a decrease of $941 from current year amortization.
Offsetting the above increases is a decrease in deferred regulated business activities of $11,942. This deferred item is primarily funded from investment earnings of the decommissioning assets in excess of the decommissioning liabilities. During the fiscal year, an adjustment was made to reduce the deferred regulated business activities and to increase decommissioning liability by
$11,070 resulting from an increase in estimated decommissioning liability. The account was also reduced by $872 due to unrealized investment loss.
The largest portion of the City's net position of $2,119,642 reflects its investment in capital assets (e.g. land, buildings, utility plant, machinery, equipment, and infrastructure), net of any related outstanding debt that was used to acquire those assets. The City uses these assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources CITY OF ANAHEIM needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets increased by $27,479 (1%)
primarily due to the addition of capital assets offset by a reduction of the related outstanding debt due to current year principal payments and current year addition to accumulated depreciation.
An additional portion of the City's net position of $358,787 represents resources that are subject to external restrictions on how they may be used. This amount increased by $28,255 from the prior fiscal year.
Restricted net position of the governmental activities increased $17,283 primarily due to increases of $20,113 in unspent restricted resources including ATID revenues ($3,667), park development fees ($2,037),
affordable housing projects ($7,000), homeless shelter and Homeless Housing Assistance & Prevention (HHAP) grants ($5,189), CDBG program income ($1,200), and various Fire and Community Services restricted resources ($1,020). Offsetting the increases is a decrease of $3,747 in capitalized interest restricted for the 2021 Working Capital Bonds.
Restricted net position in the business-type activities increased by
$10,972 primarily due to an increase of $5,643 in resources restricted for debt service, an increase of $1,398 for capital projects primarily restricted for the Electric and Water Utilities' renewal and replacement for utility plant as required per the bond indenture, and an increase of $3,931 primarily for the Electric Utility public benefits projects.
The remaining deficit balance of $478,908 is the unrestricted net position reflecting a decrease in deficit of $205,823 from prior fiscal year.
Of the total deficit in unrestricted net position, the net effect from the unfunded net pension liability, the unfunded net OPEB liability, and the related deferred inflows and outflows of resources account for $783,735; this deficit amount decreased by $97,281 primarily due to favorable OPEB and Pension Plan investment earnings from the actuarial valuation for measurement date June 30, 2021, resulting in favorable amortization reflecting in pension and OPEB expenses. The unfunded net OPEB and pension liabilities are long-term liabilities that will be funded annually in accordance with actuarially determined contribution amounts and rates. The positive component of the unrestricted net position, excluding the effects of OPEB and pension liabilities, is $304,827 and may be used to meet the City's ongoing obligations to citizens and creditors.
This amount increased by $108,542 reflecting results from current year operation with revenues and expenses resuming to normal operation following the removal of restriction orders related to the COVID-19 Pandemic.
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CITY OF ANAHEIM CHANGE IN NET POSITION YEAR ENDED JUNE 30, 2022 AND 2021 Governmental Activities Business-:tYge Activities Total Government 2022 2021 2022 2021 2022 2021 REVENUES Program revenues:
Charges for services 105,751 81,732 668,061 610,955 773,812 692,687 Operating grants and contributions 247,271 226,525 603 88 247,874 226,613 Capital grants and contributions 30,090 36,376 31,363 9,751 61,453 46,127 General revenues:
Taxes:
Property taxes 94,554 90,222 94,554 90,222 Sales and use taxes 103,374 76,811 103,374 76,811 Transient occupancy taxes 177,057 29,797 177,057 29,797 Other taxes 9,592 8,902 9,592 8,902 Unrestricted investment earnings (losses)
{9,228}
1470
{6,907}
2295
{16,135}
3 765 Total revenues 758 461 551835 693120 623 089 1,451,581 1,174,924 EXPENSES Program activities:
Governmental activities:
General government 20,418 25,415 20,418 25,415 Police 147,972 182,509 147,972 182,509 Fire & Rescue 79,516 103,696 79,516 103,696 Housing & Community Development 149,709 122,411 149,709 122,411 Economic Development 3,806 5,928 3,806 5,928 Planning & Building 22,419 25,695 22,419 25,695 Public Works 56,366 60,664 56,366 60,664 Community Services 38,547 39,721 38,547 39,721 Public Utilities 2,075 2,171 2,075 2,171 Convention, Sports & Entertainment 23,879 8,071 23,879 8,071 Interest on long-term debt 33,093 31,527 33,093 31,527 Business-type activities:
Electric Utility 389,898 378,087 389,898 378,087 Water Utility 95,407 96,920 95,407 96,920 Sanitation Utility 64,186 66,022 64,186 66,022 Golf Courses 8,432 6,046 8,432 6,046 Convention, Sports & Entertainment Venues 51,776 51,239 51,776 51,239 ARTIC Management 2525 2548 2 525 2 548 Total expenses 577 800 607 808 612,224 600 862 1,190,024 1,208,670 Excess (deficiency) before transfers 180,661 (55,973) 80,896 22,227 261,557 (33,746)
Transfers in (out) 13 056 4 270
{13,056}
{4,270}
Increase (decrease) in net position 193,717 (51,703) 67,840 17,957 261,557 (33,746)
Effect of implementing GASB Statement No. 87 (6,293)
(6,293)
Net position at beginning of year 677 769 735 765 1,180,316 1,162,359 1,858,085 1,898,124 Net position at end of year 871,486 677,769 1,248,156 1,180,316 2,119,642 1,858,085
REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES Unrestricted investment loss
- 1%
Transient occu pancy taxes 23%
Sales and use taxes 14%
Property taxes 12%
Other taxes 1%
Operating grants and contributio...
33%
Capital grants and contributions 4%
Governmental activities increased the City's net position by $193,717.
Key elements of this increase are as follows:
The most significant revenues of the governmental activities are general taxes (50%), which include transient occupancy taxes (23%), property taxes (12%), sales and use taxes (14%), and other taxes (1%). Program revenues are 51% of the total revenues of the governmental activities, which include operating grants and contributions (33%), capital grants and contributions (4%), and charges for services (14%); and unrestricted investment losses (-1%) of the total revenues.
Public safety (Police and Fire & Rescue) expenses are the most significant (39%) of all governmental activities' expenses, followed by Housing and Community Development (26%), Public Works (10%), Community Services (7%), interest on long-term debt (6%), and various other programs (12%). Included in these amounts is depreciation expense, which is 8% of the total expenses for governmental activities.
Governmental activities revenues increased by $206,626 (37%) as compared to the prior fiscal year due to the following:
Taxes increased by $178,845 (87%). The largest increase in taxes is transient occupancy taxes (TOT) with an increase of $147,260 (494%) as compared to the prior fiscal year. TOT is equal to 15% of room sales derived from hotel, motel, and timeshare stays of less than thirty days. TOT revenues in fiscal year 2022 is the highest amount received in City history and surpass the pre-pandemic levels. With the rollout of vaccines for the COVID-19 virus in 2021 and strong pent-up demand for travel experiences, the Anaheim lodging market demonstrated a quick pace of recovery with CITY OF ANAHEIM significant growth during the fiscal year. Despite the Pandemic, TOT receipts for December 2021 were the highest of any historical month on record. Sales tax had an increase of $26,563 (35%). The City's share of sales and use tax is equal to 1% of taxable sales generated within the City (or 1% of the 7.75% sales tax rate). When the Resort reopened in spring 2021, the rebound was swift and robust due to pent up demand for domestic travel. While resort related businesses have not fully returned to pre-pandemic levels on an annual basis, the fourth quarter of 2021 was a record high for General Retail citywide. Additionally, sales tax revenues in the Transportation, Construction and Business to Business sectors reached all-time highs during the fiscal year. The transportation sector was boosted by highs in new and used auto sales while construction saw highs in both wholesale and retail building materials. Property taxes had an increase of $4,332 (5%). Steady demand and limited supply have continued to fuel a hot market and housing prices are at an all-time high that provided an increase to the base upon which taxes are levied.
Charges for services increased by $24,019 (29%). With the reopening of Anaheim Resort and hotels, ATID had increased by $19,153; police services provided to Disneyland and other entertainment and special events increased by $4,474; paramedic revenues increased by $5,064 due to increased numbers of medical transports; and an increase of $1,609 in paramedic cost reimbursement provided by the State GEMT program; the Housing and Community Development had an increase of $2,226 in residual receipts from ground leases, and a one-time revenue share from a property sale of $1,196 distributed from the Long Range Property Management Plan. Offsetting these increases is a decrease of one-time gain on sale of land held for resale in Economic Development of $8,229 in the prior fiscal year; and a decrease of $2,168 in strike team reimbursement as fewer activities occured during the fiscal year.
Operating grants increased by $20,746 (9%}. Emergency rental assistance grants had an increase of $20,651 as additional COVID-19 related fundings from the Federal Treasury ($9,019) and through the State allocation ($22,196) were received during the fiscal year. These funds were spent to provide rental assistance to eligible families impacted by the COVID-19 pandemic. Federal rental assistance and administrative funding for the Housing Choice Voucher (HCV), Mainstream and new Emergency Housing Voucher (EHV) Program had an increase of $9,425 to meet program needs as rental assistance per participant in the combined program increased 5.6% and residents assisted increased 2.8%. A combined total increase of $11,668 in HOME 2E
($1,532), Homeless Shelter ($3,981), Emergency Shelter ($4,097),
and Homeless Housing, Assistance and Prevention ($2,058) were received to provide funding for operating the homeless shelters and affordable housing. Offsetting by these increases is a decrease of $20,320 of the CARES allocation from the State in the prior fiscal year and a reduction of $1,300 in CDBG funding due to lower spending.
Capital grants and contributions decreased by $6,286 (17%). The decrease is primarily due to a net decrease of$5,753 in capital asset contributions from developers primarily in public right-of-way and Park development in the prior fiscal year. Contributions from property owners for the Platinum Triangle project decreased by
$3,642 and reimbursement from the State for the Avon Dakota Housing development project had a decrease of $1,053. Partially offsetting the decreases is a one-time grant of $5,500 provided by the State for the acquisition of a site for the purpose of creating affordable housing opportunities for persons experiencing homelessness.
Unrestricted investment had a loss of $9,228 primarily due to unrealized investment loss at fiscal year end.
Governmental activities net transfer in increased by $8,786 (206%)
mainly due to lesser amount transferred to the business-type activities. A decrease of $14,152 transferred to the Convention, Sports and Entertainment Venues to subsidize the Fund due to revenue shortfall impacted by COVID-19 pandemic shutdown
($6,500) and for debt services ($7,652) in the prior fiscal year, offset by a combined decrease of $1,664 transfer in from the Electric Utility ($1,428) and Sanitation Utility ($236). The transfer is equal to the maximum of 4% current fiscal year total operating revenues adjusted by the true-up of prior fiscal year transfer, a one-time transfer out in the amount of $1,251 to the Electric Utility for the construction cost of electric facilities in the Platinum Triangle project, and a one-time transfer out to the Water Utility in the amount of $1,591 for the transfer of land in the prior fiscal year.
$180
~ $120 0
$60
$0 CITY OF ANAHEIM EXPENSES AND PROGRAM REVENUES -
GOVERNMENTAL ACTIVITIES e Program Revenue e Program Expenses
_I Governmental activities expenses decreased by $30,008 (5%) as compared to the prior fiscal year.
Key elements of the change are as follows:
Pension and OPEB expenses both have significant decreases as compared to prior fiscal year mainly attributable to large amounts of favorable amortization being recognized from the deferred items related to the Pension and OPEB Plans. The decreases are primarily resulting from the difference between projected and actual investment earnings. Total pension expenses allocated to governmental activities were $77,681 and OPEB expenses were
$6,218 lower than prior fiscal year.
The decrease in General government expenses of $4,997 (20%)
is primarily due to a decrease of $6,569 in pension and OPEB expenses, offset by an increase of $1,572 in operating costs primarily due to post-implementation support for the Permit System.
The decrease in Public safety expenses of $58,717 (21%) is mainly attributable to decreases in Pension and OPEB expenses of
$60,998. Other than the decreases in pension and OPEB expenses, Fire Safety had a decrease of $4,192 in operating expenses primarily due to decreases of$4,110 in COVID-19 related expenses in the prior fiscal year; contracted ambulance expense had a decrease of $2,532 due to the in-house ambulance program being implemented; partially offset by an increase of $2,753 in full-time overtime since overtime labor costs were utilized to backfill position vacancies.
Police Safety operating expenses increased by $6,473 primarily due 2,
to an increase of $7,349 in full-time overtime to meet increased demand for police services following the re-opening of the Anaheim Resort. This increase in full-time overtime partially offset the decrease in full-time labor as more overtime was utilized to backfill vacant positions.
The increase in Housing & Community Development expenses of
$27,298 (22%) is mainly due to an increase of $19,208 in expenses related to emergency rental assistance provided to eligible families in need; rental assistance for Housing Choice Vouchers (HCV), Mainstream and new Emergency Housing Voucher (EHV}
program expenses increased $7,871 due to higher program rents, and assistance per participant/household and initial leasing of EHV.
The decrease in Economic Development expenses of $2,122 (22%)
is due to a one-time accrued expense for distribution of land sales proceeds of $1,196 to CDBG in the prior fiscal year.
The decrease in Community Services expenses of $1,174 (3%) is mainly due to a decrease in pension and OPEB expenses of $3,988 partially offset by an increase of $1,380 in part-time overtime and $718 in professional services due to increased payments to instructors and services due to the Community Services facilities and Classes being reopened to the public.
The increase in Convention, Sports & Entertainment expenses of
$15,808 (196%) is primarily due to increased payment of $14,218 to Visit Anaheim. The payment is equal to 75% of the ATID revenues.
The decrease in Public Works expenses of $4,298 (7%) is primarily attributable to decreases of $6,535 in pension and OPEB expenses; a decrease of $4,754 in one-time payment to Anaheim Transportation Network (ATN) in the prior fiscal year for acquisition and operation of buses for the Anaheim Resort. Partially offset by an increase of
$3,616 in depreciation expense as new assets were placed in service.
The increase in interest on long-term debt of $1,566 (5%) is primarily due to interest expense for the 2021 Working Capital Bonds issued in June 2021.
CITY OF ANAHEIM REVENUES BY SOURCE - BUSINESS-TYPE ACTIVITIES Capital grants and Contributions 5%
Unrestricted investment losses
-1 %
Charges for service 96%
May not sum to 100% due to roundi ng Business-type activities increased the City's net position by $67,840.
Key elements of this change are as follows:
Charges for services of 668,061 increased by $57,106 (9%} due to the followings:
The increase of $14,552 (3%) in Electric Utilities charges for services is primarily attributable to the following: a) Retail sales of electricity totaled $347,824 increased by $19,384 (6%}. This increase is due to shelter at home restrictions being removed, with hotels, theme parks, and other entertainment venues resuming normal operations for most of the fiscal year. b) Wholesales totaled $20,640 and had a decrease of $6,646 (24%). As more businesses resumed normal hours of operations, the demand for retail energy increased resulting in more energy being sold to the retail sector instead of the wholesale market. c) Rate Stabilization Account (RSA} revenue of $40,000 increased by $5,000. Additional information about the RSA can be found in note l of the notes to the financial statement on page 69 of this report.
The increase of $5,888 (6%} in Water Utilities charges for services included an increase of $7,212 (8%) in retail sales of water, net of uncollectible amounts, reflecting both an increase in customer rates and an increase in customer demands due to warmer temperatures and lack of precipitation. There was no Rate Stabilization Account (RSA) revenue recognized in this f iscal year.
$1,670 in RSA was recognized in the prior fiscal year. Additional information about the RSA can be found in note 1 of the notes to the financial statement on page 69 of this report.
2E
The increase of $5,092 (7%) in Sanitation Utility charges for services includes an increase of $4,777 in solid waste and collection fees reflecting an 8.5% rate increase during the fiscal year.
The increase of $3,731 (53%) in Golf Courses charges for services is due to increases in numbers of round played and average green fees, and increases in concession revenues. The increase in golf course revenues is due to the Golf Courses resuming normal operation for the entire fiscal year following the COVID-19 pandemic closure, and partially due to the improvements and renovations to the golf courses that provide customers a better product.
The increase of $27,882 (638%) in the Convention, Sports and Entertainment Venues Fund is due to the Convention Center reopening and returning to normal operation the entire fiscal year.
The decrease of $39 (100%) in ARTIC Management had no significant change to note.
Capital grants and contribution had an increase of $21,612 (222%)
primarily due to the following:
Water Utility had an increase of $23,707 primarily due to capital contribution for the PFAS Treatment Facilities.
Electric Utility had a decrease of $1,991. There is no significant change to note.
Unrestricted investment had an investment loss of $6,907 primarily due to unrealized investment losses at the end of the fiscal year.
Business-type activities net transfer out increased by $8,786 (206%) as explained in the net transfer in the governmental activities. There were no other significant changes to note.
$600
~ $400 0
~ $200
$0 CITY OF ANAHEIM EXPENSES AND PROGRAM REVENUES -
GOVERNMENTAL ACTIVITIES Revenues Expenses Total expenses of $612,224 increased $11,362 (2%). Key elements of the changes are due to the following:
The increase in Electric Utility expenses of $11,811 (3%) is due to the following: a) power costs increased by $20,426 (8%). The increase is primarily due to an increase of $31,037 resulting from higher demand for electricity in the retail sector, coupled with $14,978 spending in providing major maintenance to our Canyon and Magnolia generating stations. These increases were partially offset by a net reduction of $22,931 associated with the lntermountain Power Plant operating at minimum capacity as a result of coal supply shortages; b) depreciation expense had an increase of$2,341 (5%) with new capital assets being placed in service; and c) partially offsetting the increases is a decrease of $9,522 in pension expense and a decrease of $1,286 in OPEB expense as previously explained in the governmental activities.
The decrease in Water Utility expenses of $1,513 (2%) is due to the following: a) a combined decrease of $3,504 in pension and OPEB expenses as previously explained; b) the amount of overhead capitalized increased by $4,515 as a result of increased capital spending; c) partially offsetting these decreases is an increase of $2,079 (4%) in purchased water, treatment and pumping costs; the Water Utility changed its water supply mixture from primarily cheaper water pumped from local groundwater through the Orange County Water District (OCWD) to primarily more expensive imported water through the Metropolitan Water District
of Southern California (MWD) due to elevated PFAS in the local groundwater; one-time expenses of $2,411 for the PFAS feasibility study, and an increase of $1,204 in depreciation expense due to new capital assets being placed in service.
The decrease in Sanitation Utility expenses of $1,836 (3%) is primarily due to a combined decrease of $1,811 in pension and OPEB expenses as previously explained.
The increase in Golf Courses expenses of $2,386 (39%) reflected higher operating costs along with an increase of 53% in golf course revenues. These increases include increases in contracted services, credit card fees, landscape maintenance, costs of merchandise, and costs of food and beverage.
The increase in Convention, Sports & Entertainment Venues expenses of $537 (1%) is due to the following: labor expenses had an increase of $3,514 and utility expenses had an increase of $1,568. These increases were primarily due to the Convention Center reopening for normal operation for the entire fiscal year following a year long closure due to the COVID-19 Pandemic. A one-time expense of $1,272 was due to cost of issuance for the 2021 Convention Center Expansion refunding bonds. Offsetting these increases is a combined decrease of $5,880 in pension ($5,456) and OPEB ($424) expenses as previously explained.
The decrease in ARTIC Management expenses of $23 (less than 1%)
does not have significant change to note.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported total ending fund balances of $578,460, an increase of $101,171 in comparison with the prior fiscal year.
Nonspendable fund balance totaled $829 (less than 1%), had an increase of $231; Restricted fund balance totaled $359,251 (62%), had an increase of
$39,786; Assigned fund balance totaled $175,155 (30%), had an increase of
$26,815; CITY OF ANAHEIM Committed fund balance totaled $3,943 (1%), had a decrease of
$144; Unassigned fund balance totaled $39,282 (7%) had an increase of
$34,453 Governmental revenues totaled $743,221 increased by $196,134 while expenditures were $650,534 and increased by $58,757. Information about the changes in fund balances, revenues and expenditures are provided in the following analysis of the General Fund, Housing Authority and nonmajor governmental funds, respectively.
General Fund:
The General Fund is the general operating fund of the City. At June 30, 2022, the General Fund reported a total ending fund balance totaling
$177,021 and had an increase of $40,894 consisting of the following changes:
Nonspendable fund balance totaling $601 had an increase of $199 consisting of an increase of $120 in inventory and $79 in prepaid.
Restricted fund balance totaling $10,030 had a decrease of $3,508 consisting of a decrease of $7,403 restricted for debt service for the 2021 working capital bonds capitalized interest. This amount was transferred to the Municipal Facilities non major debt service governmental fund during the fiscal year; a decrease of $610 in claims and judgment of which $600 was transferred to the Water Utility per the Measure N election result in November 2014. Offsetting the decreases is an increase of $5,189 in unspent homeless shelter and prevention grants provided by the State; an increase of $1,020 in various unspent restricted Fire and Community Services resources.
Assigned fund balance totaling $114,039 had an increase of $9,827.
The increase is primarily due to an increase of $10,000 being assigned for future debt services.
Unassigned fund balance totaling $52,351 had an increase of
$34,376 reflecting results from current year activities.
General Fund total revenues increased $181,413 (51%) as compared to the prior fiscal year primarily attributable to the following:
Total taxes increased by $178,273 (87%). Taxes are the largest revenue sources of the General Fund and they accounted for
$383,721 of the total General Fund revenues. During fiscal year 2022, transient occupancy taxes (TOT) increased by $146,877 (487%), property taxes increased by $4,332 (5%), sales and use taxes increased by $26,514 (34%); and other taxes increased 3(
by $550 (7%). The increases are primarily due to revenues returning to pre-pandemic levels following the re-opening of the Anaheim Resort, hotels, businesses and entertainment venues. Key elements of the changes in taxes are discussed in the government-wide financial analysis of the governmental activities on page 26 of this report.
Intergovernmental revenues increased by $3,020 (3%) primarily due to a combined increase of $20,652 in Emergency Rental Assistance provided by HUD and the State; an increase of $6,040 provided by the State for homeless shelter and prevention purposes; an increase of $1,714 in waste disposal revenue sharing included $845 being unavailable for revenue recognition in the prior fiscal year.
Partially offsetting the increases was $20,320 of CARES funding from the State distribution and the one-time $5,338 in CARES funding from the County of Orange for food distribution, small businesses assistance, vaccination, and other COVID-19 related activities in the prior fiscal year.
Charges for services increased by $5,514 (20%) primarily due to an increase of $4,327 in police services provided to Disneyland and other entertainment and special events as demand for police services increased following the reopening of the Anaheim Resort.
Paramedic transport revenue increased by $2,707 due to increased numbers of emergency transport, partially offset the increases by a decrease of $2,181 in strike team reimbursement due to fewer activities being provided during the fiscal year.
Use of money and property had a decrease of $4,357 (98%)
primarily from unrealized investment losses at fiscal year end.
General Fund expenditures increased by $36,325 (10%) primarily due to the following:
An increase of $20,153 in Housing and Community Development is primarily due to increases in COVID-19 related expenditures for emergency rental assistance, small business assistance, and other community assistance as previously discussed.
An increase of $7,725 in Police is primarily due to increases in service demand, and an increase in overtime labor to backfill position vacancies as previously discussed.
An increase of $2,831 in Finance is primarily due to post-implementation support of the Permit system.
An increase of $2,892 in Community Services is due to Community Services facilities and Sporting Classes being reopened for normal operation.
CITY OF ANAHEIM An increase of $2,778 in capital outlay is due to the acquisition of 9 ambulances totaling $1,495.
General Fund other financing sources decreased by $138,054 primarily due to the issuances of the $138,755 Working Capital bonds and the $799 ambulance acquisition loan in the prior fiscal year, offset by the issuance of a $1,500 loan for additional ambulance acquisitions in the current fiscal year.
General Fund Transfers out increased by $73,753 (184%) including the following increases:
An increase of $68,777 in transfers out to the Anaheim Resort Improvements Debt Service Fund. This increase is due to increases in Lease Payment Measurement Revenues (LPMR) following the re-opening of the Anaheim Resort. Additional information about LPMR can be found in note 10 on page 88 of the notes to the financial statements of this report; An increase of $7,433 in transfer out to the Municipal Facilities nonmajor debt service governmental fund for the 2021 working capital bonds capitalized interest balance.
An increase of $13,000 in transfer out to the nonmajor capital project for Neighborhood projects ($10,000) and Fire Station 4 improvements ($3,000).
An increase of $5,740 in transfer out to the Municipal Facilities Maintenance internal service fund for deferred maintenance projects.
Partially offsetting these increases is a decrease of $14,152 in transfer out to the Convention, Sports and Entertainment Venues enterprise Fund to subsidize the Fund with cash flow assistance
($6,500) due to revenue losses resulting from the pandemic closure and for debt services ($7,652) in the prior fiscal year; and a decrease in transfer out of $5,962 to the Employee Benefit Fund ($5,462) and Information and Communication Services internal service fund
($500) for COVID-19 related expenses in the prior fiscal year.
Housing Authority The Housing Authority reported a fund balance totaling $85,660 at June 30, 2022, and had a decrease of $1,541.
Restricted fund balance totaling $44,143 decreased by $7,177 primarilyduetofundsspentforthelowincomemultifamilyhousing development loans of $9,031; partially offsetting the decrease by an increase of $1,979 in unspent rental assistance.
31
Assigned fund balance for housing projects totaling $41,475 had an increase of $5,635 primarily due to receipts from loans and residual receipts from ground leases.
The Housing Authority revenues totaled $115,270 and had an increase of
$7,556. The increase consists of the following:
Intergovernmental revenues increased by $8,372 primarily due to an increase of $9,425, net of $6,563 in prior year CARES Act funding, to meet program needs.
Use of money and property had a decrease of $1,783 primarily due to a decrease of $3,150 in unrealized investment loss at fiscal year end, partially offset by an increase of $3,225 from the receipts of principal and interest loan payments and an increase of $2,226 in residual receipts from ground leases (the ground leases are not accounted for in Lease Receivable. They do not have fixed scheduled payments and are dependent on residual receipts for the year.)
The Housing Authority expenditures increased by $17,205 (17%). This increase is primarily due to the following:
An increase of $7,871 in rental assistance expenditures in HCV and EHV as previously discussed.
An increase of $9,031 in low income multifamily housing development loans totaling $9,031 were issued to three new projects.
A decrease of $626 in capital outlay related to a property purchased in the prior fiscal year offsetting the above increases.
Net transfer in increased by $810 consists of the following:
Transfer in of $2,451 federal HOME grant from the Grant nonmajor special revenue for a housing development loan to the Miraflores project.
Transfer out of $1,260 to the General Fund for the purchase of the City's Matrix/Midway right of way parcel to complete the Miraflores multifamily parcel assemblage.
Nonmajor governmental funds Nonmajor governmental funds reported fund balances totaled $315,779 reflecting an increase of $61,818. The change consists of the following:
Nonspendable fund balance had an increase of $31. There is no significant change to note.
CITY OF ANAHEIM Restricted fund balance totaling $305,078 had an increase of
$50,471. Of this increase, fund balance restricted for debt services increased by $41,445 which included $36,211 for the Resort bonds resulting from the increases of LPMR (refer to note 10 on page 88 for discussion related to LPMR); an increase of $5,234 (capitalized interest account balance net of current year debt service payments) was restricted for the 2021 Working Capital Bonds debt service. Fund balance restricted for grant purposes increased by $6,721 related to unspent CDBG program income ($1,200) and for affordable housing purposes ($5,500); $3,407 increase in fund balance restricted for Streets, roads and transportation improvement is primarily due to increase in ATI D funds; offsetting the increases by a decrease of $4,293 in fund balance restricted for Economic development primarily due to a payment of $3,560 related to economic development project.
Assigned fund balance totaling $19,641 had an increase of $11,353 primarily from a $10,000 transfer in from the General Fund for neighborhood improvements.
Unassigned fund balance deficit totaling $13,069 had a decrease in deficit of $77. The deficit fund balance will be eliminated in future years by the receipts of grant expenditures. There is no other significant changes to note Total nonmajor governmental funds revenues increased by $7,165 (8%). The most significant factors of the changes are discussed in the government-wide financial analysis of the governmental-activities.
Charges for services increased by $19,396 (244%) attributable to increases in ATID assessment revenues as previously discussed.
Intergovernmental revenues increased by $6.513 (14%) from a one-time $5,500 homeless affordable housing State grant; an increase of $4,100 in ESG and an increase of $1,500 in the HOME affordable housing related to the Midway project. These increases were partially offset by decreases in CDBG of $1,861 due to lower spending, and a decrease of $1,810 of the Urban Area Security Initiative (UASI) Grant due to project timing.
Licenses, fees and permits decreased by $2,315 primarily due to the one-time Jefferson Stadium Park development fees in the prior fiscal year.
Contribution from property owners included a one-time contribution of $1,534 from developers for the Mello Roos projects in the Platinum Triangle, a decrease of $3,641 as compared to the prior fiscal year.
Use of money and property decreased by $12,888 (73%) primarily from a gain on sale of land held for resale of $8,229 in the Long Range Property Management Fund in the prior fiscal year, and
$1,533 lowercollection of loan revenues; partially offset bya decrease of $1,325 in investment losses due to unrealized investment losses at fiscal year end.
Total nonmajor governmental funds expenditures increased by $5,227 (5%) due to the following:
Increase of $14,218 is for the payment to Visit Anaheim which is equal to 7% of ATID, as previously discussed.
Increase of $3,560 is for the payment from the Long Range Property Management Plan for distribution of the land sale proceeds of the former Redevelopment Agency properties to the County of Orange.
Increase of $2,058 in Interest charges primarily due to the interest payment of the 2021 Working Capital bonds issued in June 2021.
Partially offsetting the above increases is a decrease of $4,754 in payments to Anaheim Transportation Network (ATN). The decrease is due to the City completing the final payment of the grant agreement in support of ATN's acquisition of buses and the ATN's COVID-19 Recovery Plan in the prior fiscal year.
Capital outlay decreased $9,084 primarily due to timing of projects.
Total non major governmental funds Other Financing sources and uses increased by $79,209 due to the following:
Transfer in increased $86,696.
The increase is primarily attributable to an increase of $68,777 in LPMR; an increase of
$7,132 of the capitalized interest from the General Fund and an increase of $13,000 from the General Fund for the Fire Station 4 capital improvement ($3,000) and neighborhood improvements
($10,000).
Transfer out increased by $7,487 is due to a transfer of $3.500 from the ESG to the General Fund for the Salvation Army homeless shelter operation, and a transfer of $2,600 from the HOME grant to the Housing Authority for affordable housing Midway project.
The issuance of refunding bonds ($23,546), payment to refunded bond escrow agent ($23,348), and the cost of issuance ($198) were related to the refunding of the governmental portion of the 2021 Convention Center Expansion Refunding Bonds.
CITY OF ANAHEIM Proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The significant factors of the changes in fund net position of each proprietary fund are discussed in the government-wide financial analysis of business-type activities.
The Electric Utility net position increased by $40,611 (9%) in the current fiscal year.
The Water Utility fund net position increased by $31,892 (15%) in the current fiscal year.
The Sanitation fund net position increased by $6,530 (5%) in the current fiscal year.
The Golf Courses fund net position increased by $2,272 (42%) in the current fiscal year.
The Convention, Sports and Entertainment Venues fund net position decreased by $14,180 (6%) in the current fiscal year.
The ARTIC Management fund net position increased by $1,824 (1%).
GENERAL FUND BUDGETARY HIGHLIGHTS During the year, the original budget was amended to increase appropriations by $55,618 (14%). The increase in appropriations was primarily the result of the carryover of prior year appropriations and amendments amounting to $45,708 and the reallocation ofappropriations from other funds of $9,910. These amendments were to be funded from savings in other programs of the General Fund during the year.
General Fund revenuesof$535,703weregreaterthan budgeted revenues of $455,901 by $79,802 (18%), primarily due to stronger than anticipated performance of sales tax and transient occupancy taxes following the reopening of the Anaheim Resort, hotels and businesses.
General Fund expenditures were less than budgeted. Of the total appropriations of $443,891, approximately 7%, or $30,457, went unspent.
Labor costs were below budget by $9,931. The favorable variance in labor savings was mainly resulting from employee turnover and the time between an employee leaving and the recruitment of a new employee. Housing and Community Development expenditures were below budget by $19,227 primarily due to unspent appropriations for emergency rental assistance and homeless prevention assistance.
CITY OF ANAHEIM CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS (net of accumulated depreciation)
JUNE 30, 2022 AND 2021 Governmental Business-type Total Activities Activities Government 2022 2021 2022 2021 2022 2021 Land 694,224 $
Construction in Progress 43,674 Building, structures, and improvements 218,505 Utility plant Machinery and equipment 44,382 Right to use leased assets*
4,699 Infrastructure 453.525 Total 1.459.009 $
- Restated 2021 Right to use leased assets due to implementation of GASB No. 87 Capital assets The City's investment in capital assets for its governmental and business-type activities at June 30, 2022 amounted to $3,670,749 (net of accumulated depreciation). This investment in capital assets included land, construction in progress, buildings, structures, right to use leased
~ssets, and improvements, utility plant, machinery and equipment, and infrastructure. The total increase over the prior fiscal year was $30,887 (less than 1%), of which governmental activities decreased by $5,767 {less than 1%) and business-type activities increased by $36,654 (2%).
Governmental activities capital asset additions totaled $42,559, capital asset transferred in from the business-type activities of $360, offset by current year depreciation of $48,513, and retirement of capital assets, net of accumulated depreciation of $173. Major capital asset activities during the current fiscal year include the following:
Land had an increase of $967 in right-of-way contributed by developers.
Construction in progress had an increase of $1,834 consisting of
$29,704 in project additions, completion of $27,731 and cancellation of $139. The additions of works in progress include $18 059 of infrastructure construction, $369 in park developments, $459 in land development, $9,534 in structural improvements, and $1 274 in Enterprise Resource Planning system upgrade, and $9 in various 693,257 $
93,331 $
93,331 $
787,555 $
786,588 41,840 167,595 198,665 211,269 240,505 223,705 658,187 675,060 876,692 898,765 1,270,801 1,182,845 1,270,801 1,182,845 46,285 18,807 21,838 63,189 68,123 4,828 3,019 3,347 7,718 8,175 454.861 453,525 454.861 1,464,776 $
2,211,740 $
2,175,086 $
3,670,749 $
3,639,862 other projects. Completion of construction in progress totaled
$27,731 including completion of street improvements on Katella
~idening from Harbor to West ($2,536), East Street pavement improvement from La Palma-91 Freeway ($952), Orangethorpe Street from Lakeview to Imperial ($2,411), Torry Street {$2,504),
Lotus Street ($2,774), traffic signal synchronization on Anaheim Boulevard ($991,) and on La Palma ($2,763). Play equipment on Cottonwood Park ($144), and the remodel of the Ducks locker room ($7,799).
Machinery and equipment had a net increase of $3,069 including acquisitions of various vehicles, a fire truck and 9 ambulances totaled $2,409; office, technology and field equipment totaled
$3,138, offsetting by equipment retirement of $2,478.
Right to use leased equipment increased by$834forcurrentyear addition of computer leases.
Contributions of capital assets from various external sources included $11,919 of structural improvements in the Honda Center
$2,617 in land and infrastructure, and $129 in play equipment fo; parks.
The increase in business-type activities is primarily due to increases in the following:
3L
The Electric Utility net increase of $11,128 (1%) includes capital asset additions of $59,375, and offset by $48,247 for the current year in addition to accumulated depreciation. Construction in progress decreased by $24,022 mainly due to $57,027 in additions of capital projects offset by work completed of $81,049. During the fiscal year, the Electric Utility completed construction of the undergrounding of the area of Euclid Avenue from Broadway to Crone and Euclid from Ball to Sallie Lane as part of the Undergrounding District 50; during the fiscal year, the Electric Utility also completed the following projects: the Platinum Triangle Line extension which includes the areas west of Clementine Street to east of Freeway 5; Haster Street from Gene Autry Way to Cerritos Avenue; Clementine Street from Katella Avenue to 300' north of Kate Ila Avenue; Gene Autry Way from Anaheim Way to State College Boulevard; State College Boulevard from Gene Autry Way to Orangewood Avenue; Santa Cruz Street from Gene Autry Way to Orangewood Avenue; Orangewood Avenues from Anaheim Way to east of State College Boulevard. Other major projects such as the installation and replacement of aging direct buried cable; replacement of switches, breakers, poles, cable and conduit throughout the City also contributed to the increase.
The Electric Utility also replaced approximately 4,153 street lights with more efficient LED lights, and upgrades to the general plant assets to better serve our customers.
The Water Utility increase of $41,lll (10%) includes capital asset additions of $55,699, offset by cancellation of a work in progress of $1,148, and current year accumulated depreciation addition of
$13,440. Construction in progress decreased by $11,435 primarily due to work in progress additions of $54,554 offset by works completed of $64,841, and cancellation of a capital project of
$1,148 that was found not to be feasible under the current financial condition. Project completions include East End reliability Improvements and Linda Vista Complex Pumps replacement. The Water Utility continues its capital infrastructure building program by actively replacing aging mainlines, improving its storage CITY OF ANAHEIM capacity, as well as replacing and improving its distribution system in order to ensure the water supply continues to be safe, reliable, and sufficient to meet future demands. For the fiscal year ended June 30, 2022, the Water Utility ranked in the top national quartile for infrastructure reliability as measured by the number of main breaks per 100 miles of distribution piping.
The Sanitation Utility increase of $517 (less than 1%) is comprised of capital asset additions of $3,802 and offset by the current year additions to accumulated depreciation of $2,920. Construction work in progress increased by $1,997 primarily due to additions of $3,264 of sanitary improvements on various city locations, offsetting by work completed on East Anaheim Boulevard
($908), cancellation of $5 in work in progress and $360 of assets transferred to the governmental activities.
The Golf Courses increase of $1,336 (12%) is due to current year additions of $2,018 and works completed of $503. The assets include $1,580 in land improvements to the golf courses, machinery and equipment acquisitions of $388, and $538 in improvement to the golf courses restroom, dining area and pro shop renovation.
The additions are offset by current year additions to accumulated depreciation of $682.
The Convention, Sports and Entertainment Venues decrease of $15,365 (3%) is primarily comprised of capital asset additions of $3,080 offset by the current year additions to accumulated depreciation of $19,043 and $2 in retirement of capital assets, net of accumulated depreciation.
The ARTIC Management decrease of $2,073 (1%) is mainly due to capital asset additions of $298 offset by current year addition to accumulated depreciation.
Additional information on the City's Capital Assets can be found in notes l and note 7 of the notes to the financial statements, on page 67 and page 84 of this report.
3!:
CITY OF ANAHEIM LONG-TERM LIABILITIES JUNE 30, 2022 AND 2021 Governmental Business-type Total Activities Activities Government 2022 2021 2022 2021 2022 2021 Long-term debts:
Interest payable Lease payable*
4,375 $
Notes and loans payable from direct borrowing 21,473 Revenue bonds 666,167 Total 692,015 Other long-term liabilities:
Due to other governments 19,020 Self-insurance claim liability 58,519 Compensated absences 24,459 San Juan reclamation liability Provision for decommissioning liability Net OPEB liability 81,027 Net pension liability 408,413 Total 591,438 Total long-term liabilities 1,283,453 $
- Restated 2021 Lease payable due to the implementation of GASB No. 87 Long-term liabilities At June 30, 2022, The City's outstanding long-term liabilities totaled
$$2,817,657 decreased by $261,784 (9%) in which long-term debts increased by $113,852, and other long-term liabilities decreased by
$375,636.
Long-term debts including revenue bonds, notes and loans payable, lease payable, and interest payable due in more than one year totaled
$$2,005,683 at June 30, 2022. Key changes include the following:
Long-term debts in Governmental activities totaled $$692,015, and decreased by $13,436 (2%).
Principal payments of $19,866 on bonds, notes and lease payable, payment made on the accretion of capital appreciation bonds of $18,063, and the annual amortization of discounts/premium of
$4,160 decreased the long-term debt balances..
3,747 $
3,669 $
3,747 $
3,669 4,828 2,997 3,337 7,372 8,165 16,466 2,402 6,366 23,875 22,832 684,157 1,304,522 1,173,008 1,970,689 1,857,165 705,451 1,313,668 1,186,380 2,005,683 1,891,831 22,580 19,020 22,580 59,119 58,519 59,119 24,665 24,459 24,665 4,942 5,411 4,942 5,411 87,779 80,889 87,779 80,889 119,442 26,122 40,658 107,149 160,100 655,410 101,693 179,436 510,106 834,846 881,216 220,536 306,394 811974 1,187,610 1,586,667 $
1,534,204 $
1,492,774 $
2,817,657 $
3,079,441 New debt issuances and the accretion accrued totaling $28,653 offsetting the above decreases and included the following: a)
The City issued 2021 Convention Center Expansion Refunding Bonds in the principal amount of $260,250 at par, to refund the outstanding 2014 bonds. Portion of the bonds was allocated to governmental activities for public infrastructure construction. Net increase in principal of the refunding bonds is $2,351. b) The City entered into a direct loan borrowing agreement, through a Master Agreement, in the amount of $1,500 to finance the acquisition of nine ambulances; and $6,500 to finance the acquisition of technological equipment; c) an increase of $834 in lease payable for the new computer leases; d) an increase of $17,468 for the current year accrued accretion payable.
Long-term debt in the business-type activities totaled $$1,313,668, increased by $127,288 (11%).
3
The increase is primarily due to the issuances of the following bonds: a) 2022 Electric Revenue Refunding Bonds Series A, Band D in the total principal amount of $310,640 and at a premium of $25,380 to partially refund the outstanding principal amount of the 2012 Electric Revenue Bonds ($14,335), the 2017 Electric Revenue Bonds ($181,210), and to provide financing of $125,000 for the electric system capital improvements, b) 2022 Water Revenue Refunding Bonds Series A, Band C in the total principal amount of $155,815 and at a premium of $9,234 to partially refund the outstanding principal balance of the 2010 Water Revenue Bonds
($29,690). The 2015 Revenue Bonds ($39,065), the 2020 Water Revenue Bonds ($34,305) and to provide financing of $50,000 for the water system capital improvements. c) 2021 Convention Center Expansion Refund Bonds with a principal balance of
$226,704 at par (amount allocated to the business-type portion), to refund the outstanding principal balance of the 2014 Convention Center Expansion Bonds with an outstanding principal balance of $204,063, and d) issuance of the $177 golf equipment loan. The unamortized premium balances totaling $38,539 were adjusted to deferred charges on refunding bonds.
Principal payments of $50,259 on bonds, notes and leases payable,
$9,214 for current year amortization of premium/discount, offset by an increase of $78 for a long-term interest payable decrease the increases from the above bond insurances.
Other long-term liabilities include self-insurance, compensated absences, provision for decommissioning liability, net OPEB liability, and net pension liability totaling $$811,974 decreased by $375,636 at June 30, 2022. Key changes include the following:
Other long-term liabilities in the governmental activities totaled
$591,438 decreased by $289,778 (33%). Self-insurance claim liability, based on actuarial valuation, decreased by $600, compensated absences decreased by $206, Due to other government decreased by $3,560 due to a payment was made, net pension liability, per plan actuarial valuation, decreased by $246,997 primarily due to the plan favorable difference between projected and actual investment earnings; Net OPEB liability had a decrease of $38,415 primarily due to plan favorable difference between projected and actual investment experience, difference between expected and actual experience and offsetting an increase due to changes of assumption.
Other long-term liabilities in the business-type activities totaled
$220,536 decreased by $85,858. Net OPEB liabilities decreased by $14,536 and net pension liability decreased by $77,743, as CITY OF ANAHEIM previously discussed, San Juan reclamation liability decreased by
$469 due to payment of $375, and a $93 adjustment of excess funding to deferred inflow of resources related to regulated business activities; Decommissioning liabilities had a net increase of $6,890 due to an increase in estimate liability of $11,070 offsetting by current year payment of $4,180.
Additional information on the City's long-term liabilities can be found in notes 8, 10, 11, 12, 13 and 14 of the notes to the financial statements, on pages85-112 of this report.
ECONOMIC FACTORS Tourism plays a significant role in the economies of California, Orange CountyandtheCityof Anaheim (City).Anaheim has been able to compete for and capture a significant portion of tourism revenues. Following the removal of a year-long restriction order due to the COVID-19 pandemic, pent-up demand from the pandemic has led tourism, especially in Orange County and Anaheim, to return to the 2019 levels. While TOT continued to be affected by the COVID-19, Anaheim recovery is well underway and the outlook for increased TOT growth remains bright.
Due to the large interest rate increases by the Federal Reserve, the market rates of the City's securities also increased and correspondingly, the securities' prices declined. In the government-wide Statement of Activities, the City reported a total of $16,135 in Unrestricted investment losses resulting from the adjustment of unrealized investment losses at June 30, 2022. Because of the City's sufficient treasury portfolio liquidity, there will not be any of the unrealized investment losses realized due to securities being sold before maturity, At maturity, an unrealized loss for a security will be eliminated.
For the 2023 fiscal year, the City appropriated $436,696 in estimated available resources of $511,980 for General Fund spending. This leaves
$75,284 in estimated available reserves, which is 17% 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 developers doing business in the City are adjusted each year to reflect recurring costs.
California Senate Bill 100 (SB 100) signed into law in September 2018 and adjusted the Renewable Portfolio Standard (RPS) that all California utilities are required to reach. The new RPS mandate is that California utilities, at a minimum, must use renewal resources to serve 38.5% of their retail load by 2022, 50% by 2026, and 60% by 2030. SB 100 also set a state policy goal 3,
to have 100% of retail sales be served by carbon-free resources by 2045.
The Electric Utility uses a number of strategies to mitigate potential cost impacts while striving to meet and/or exceed state energy targets.
The Orange County Water District (OCWD) set the Basin Production Percentage (BPP) for all cities and water districts they serve at 77~ for fiscal year 2022. The Water Utility's Water Rates, Rules, and Regulations provide for an automatic adjustment of its commodity adjustment when OCWD and Municipal Water District (MWD) increase or decrease the cost per acre foot of water. Elevated water costs will continue until the Water Utility, in partnership with OCWD, builds local groundwater CITY OF ANAHEIM treatment to eliminate or mitigate the PFAS levels found in the local groundwater.
REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this rep~rt or requests for additional information should be addressed t~ the Office of the Finance Director, City of Anaheim, 200 South Anaheim Bouleva_rd, Suite 643, Anaheim, California, 92805. The City's Annual Comprehens_1ve Financial Report can also be found on the City's website at www.anahe1m.
net.
3E
Basic Financial Statements Anaheim, California L \\
Basic Financial Statements
Statement of Net Position June 30, 2022 (In thousands)
ASSETS Current assets:
Cash and cash equivalents Investments Restricted cash and cash equivalents Restricted Investments Accounts receivable, net Accrued interest receivable Lease receivable, net Internal balances, net Due from other governments Inventories Land held for resale, net Prepaid and other assets Total current assets Noncurrent assets:
Restricted cash and cash equivalents Restricted investments Prepaid and other assets Unamortized prepaid bond insurance Lease receivable, net Notes receivable, net Due from Successor Agency Capital assets, net:
Nondepreciable Depreciable Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding bonds Deferred OPEB related items Deferred pension related items Total deferred outflows of resources Governmental Activities 126,592 337,311 78,945 36,989 36,333 1,581 1,122 25,386 51,248 1,937 21,327 1782 720553 17,625 54,935 854 11,796 74,700 5,000 737,898 721111 1,623,919 2 344472 25,972 26,629 90 512 143 113 (Continued)
CITY OF ANAHEIM Business-type Activities Total 88,406 214,998 138,965 476,276 54,391 133,336 68,750 105,739 92,346 128,679 1,843 3,424 1,721 2,843 (25,386) 51,248 27,791 29,728 21,327 29950 31732 478 777 1,199,330 168,899 186,524 117,128 172,063 93,039 93,039 586 1,440 8,533 20,329 74,700 5,000 260,926 998,824 1,950,814 2,671,925 2,599,925 4 223 844 3 078 702 5,423,174 15,210 41,182 8,118 34,747 22895 113 407 46 223 189,336 41
Statement of Net Position June 30, 2022 (In thousands)
LIABILITIES Current liabilities:
Accounts payable Wages payable Interest payable Lease payable Deposits Unearned revenues Other long-term liabilities Long-term debts Total current liabilities Noncurrent liabilities:
Interest payable Lease payable Other long-term liabilities Long-term debts Net OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred item related to leases Deferred Regulatory credits Deferred Regulated business activities Deferred item on refunding bonds Deferred OPEB related items Deferred pension related items Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for:
Debt services Capital projects Housing and Community development Streets, roads and transportation improvement projects Other purposes Unrestricted Total net position Governmental Activities 39,906 12,339 5,633 925 9,860 13,965 32,028 39408 154 064 3,450 69,970 648,232 81,027 408 413 1211092 1,365,156 12,706 51,214 187 023 250 943 1,147,895 4,098 93,640 117,889 47,670 14,146 (553,852}
871,486 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Business-type Activities Total 93,243 133,149 2,339 14,678 13,299 18,932 328 1,253 11,695 21,555 342 14,307 32,028 48 533 87941 169 779 323 843 3,747 3,747 2,669 6,119 92,721 162,691 1,258,391 1,906,623 26,122 107,149 101693 510,106 1485 343 2,696,435 1,655,122 3,020,278 10,166 22,872 105,653 105,653 15,703 15,703 13,728 13,728 18,470 69,684 57 927 244 950 221647 472 590 1,091,868 2,239,763 35,029 39,127 37,943 131,583 117,889 47,670 8,372 22,518 74944 (478,908}
1.248,156 2,119,642 4~
CITY OF ANAHEIM Statement of Activities Year Ended June 30, 2022 (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 Exgenses Allocation Services Contributions Contributions Activities Activities Total Functions/Programs Governmental activities:
General government 37,587 $
(17,169) $
1,477 $
59,600 40,659 40,659 Police 142,798 5,174 13,279 7,001 $
80 (127,612)
(127,612)
Fire & Rescue 78,980 536 23,338 277 670 (55,231)
(55,231)
Housing & Community Development 149,235 474 13,033 153,638 5,990 22,952 22,952 Economic Development 3,615 191 2,867 (939)
(939)
Planning & Building 21,383 1,036 11,198 1,046 (10,175)
(10,175)
Public Works 56,343 23 20,846 24,022 7,819 (3,679)
(3,679)
Community Services 37,716 831 3,153 1,687 3,612 (30,095)
(30,095)
Public Utilities 2,075 (2,075)
(2,075)
Convention, Sports & Entertainment 23,527 352 16,560 11,919 4,600 4,600 Interest on long-term debt 33,093 (33,093}
(33,093}
Total governmental activities 586,352 (8,552) 105,751 247,271 30,090 (194,688}
(194,688}
Business-type activities:
Electric Utility 385,003 4,895 448,286 3,584 61,972 61,972 Water Utility 94,183 1,224 102,239 26,844 33,676 33,676 Sanitation Utility 63,583 603 74,574 603 177 11,168 11,168 Golf Courses 8,308 124 10,709 2,277 2,277 Convention, Sports and Entertainment Venues 50,070 1,706 32,253 460 (19,063)
(19,063)
ARTIC Management 2 525 298 (2,227)
(2,227)
Total business-type activities 603,672 8,552 668,061 603 31,363 87 803 87,803 Total government 1,190,024 $
773,812 $
247,874 $
61.453 (194,688}
87803 (106,885}
General revenues:
Taxes:
Property taxes 94,554 94,554 Sales and use taxes 103,374 103,374 Transient occupancy taxes 177,057 177,057 Other taxes 9,592 9,592 Unrestricted investment loss (9,228)
(6,907)
(16,135)
Transfers 13 056 (13,056)
Total general revenues and transfers 388.405 (19,963) 368,442 Change in net position 193,717 67,840 261,557 Net position at beginning of year, as restated 677 769 1,180,316 1,858,085 Net position at end of year 871.486 $
1,248,156 $
2,119,642 The accompanying notes are an integral part of these financial statements.
42
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CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2022 (In thousands)
Nonmajor Total Housing Governmental Governmental General Authority Funds Funds ASSETS Cash and cash equivalents 46,447 18,542 40,975 105,964 Investments 129,910 48,166 105,743 283,819 Restricted cash and cash equivalents 6,150 5,805 78,115 90,070 Restricted investments 12,059 79,865 91,924 Accounts receivable, net 31,261 83 2,489 33,833 Accrued interest receivable 406 312 647 1,365 Due from other funds 7,301 8,558 11,409 27,268 Due from other governments 25,743 934 24,571 51,248 Inventories 355 355 Land held for resale, net 6,032 15,295 21,327 Prepaid and other assets 246 42 186 474 Due from Successor Agency 5,000 5,000 Lease receivable 3,066 370 9,482 12,918 Notes receivable, net 8,062 49,863 16,775 74,700 Total assets 271,006 138,707 390,552 800,265 LIABILITIES Accounts payable 17,161 1,557 11,172 29,890 Wages payable 6,573 157 290 7,020 Deposits 8,181 206 1,473 9,860 bue to other funds 40,766 12,542 53,308 Unearned revenue 9,672 6
1,856 11,534 Total liabilities 82,353 1,926 27,333 111,612 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 7,973 894 16,325 25,192 Deferred item related to leases 3,002 364 9,340 12,706 Unavailable resources-long-term notes and loans 657 49,863 21,775 72,295 Total deferred inflows of resources 11,632 51,121 47,440 110,193 (Continued)
Balance Sheet Governmental Funds June 30, 2022 (In thousands)
FUND BALANCES:
Nonspendable related to inventory, prepaid and other assets Restricted:
Anaheim Resort maintenance and improvement Capital projects Claims and judgments
- Economic development projects Debt services Development impact projects Grant purposes Homebuyer assistance programs Low and moderate income housing Rental assistance Streets, roads and transportation improvement projects Committed for neighborhood and community projects Assigned:
Capital projects Debt service Housing projects Other purposes Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Housing General Authorit:{
601 42 825 2,996 6,209 2,078 35,637 6,428 10,000 41,475 104,039 52,351 177,021 85,660 271,006 138,707 The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Nonmajor Total Governmental Governmental Funds Funds 186 829 6,441 6,441 3,811 4,636 2,996 21,552 21,552 120,970 120,970 92,108 92,108 8,973 15,182 12,913 14,991 35,637 6,428 38,310 38,310 3,943 3,943 18,305 18,305 1,238 11,238 41,475 98 104,137 (13,069) 39,282 315,779 578,460 390,552 800,265 4E
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2022 (In thousands)
Total fund balances - governmental funds 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 Construction in progress Buildings, structures and improvements Machinery and equipment Infrastructure Rights to use leased assets Accumulated depreciation Total capital assets, net 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.
Unamortized prepaid bond insurance ($854) and deferred charge on bonds ($25,972) are not current financial resources, and, therefore, are not reported in the funds.
Unamortized prepaid bond insurance Deferred loss on refunding bonds Deferred future interest on partial defeasance of capital appreciation bonds 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.
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.
Certain liabilities are not due and payable in the current period, and therefore, are not reported in the funds Effects of net pension liability and other post-employment benefits {OPES) liability are not due and payable in the current period, and therefore, are not reported in the funds.
Deferred outflows of resources Net OPEB liability Net pension liability Deferred inflows of resources Long-term liabilities of governmental funds, including bonds {$666,167), notes and loan payable ($14,921), lease payable
{$2,915) and accrued interest payable {$5,590) are not due and payable in the current period, and, therefore, are not reported in the funds.
Net position of governmental activities The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM 694,224 41,929 428,416 73,412 976,828 2,979 (789,218) 854 3,825 22147 109,751 (75,347)
(388,136)
(222 916) 578,460 1,428,570 97,487 26,826 26,111 (707)
(19,020)
(576,648)
(689,593) 871486
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2022 (In thousands)
Nonmajor Total Housing Governmental Governmental General Authori!Y Funds Funds Revenues:
Property taxes 94,554 94,554 Sales and use taxes 103,421 103,421 Transient occupancy taxes 177,057 177,057 Other taxes 8,689 8,689 Licenses, fees and permits 20,341 31 6,088 26,460 Intergovernmental revenues 94,500 106,343 51,953 252,796 Charges for services 32,763 27,346 60,109 Fines, forfeits and penalties 3,257 3,257 Use of money and property 92 7,817 4,861 12,770 Lease revenues 617 145 433 1,195 Others 412 934 33 1,379 contribution from property owners 1534 l 5J4 Total revenues 535 703 115 270 92 248 743 221 Expenditures:
Current:
City Council 753 753 City Administration 12,158 12,158 City Attorney 7,606 91 7,697 City Clerk 1,240 5
1,245 Human Resources 2,034 2,034 Finance 9,009 31 9,040 Police 165,518 4,404 169,922 Fire & Rescue 91,064 246 91,310 Housing & Community Development 30,912 117,424 11,255 159,591 Economic Development 1,645 5,980 7,625 Planning & Building 23,291 1,304 24,595 Public Works 24,415 12,266 36,681 Community Services 34,998 1,243 36,241 Public Utilities 2,121 2,121 Convention, Sports & Entertainment 472 16,399 16,871 Capital outlay 3,922 197 18,199 22,318 Debt service:
Principal retirement 172 18,460 18,632 Interest charges 602 31,098 31,200 Total expenditures 411932 117 621 120 981 650 534 Excess (deficiency) of revenues over (under) expenditures 123 771
{2 351!
{28 733!
92 687 Other financing sources (uses):
Transfers in 29,386 2,557 102,337 134,280 Transfers out (113,763)
(1,747)
(11,786)
(127,296)
Issuance of refunding bonds 23,546 23,546 Issuance of loan payable 1,500 1,500 Redemption of bonds (23,348)
{23,348)
Bonds issuance costs (198!
(198}
Total other financing sources (82877) 810 90 551 8484 Net change in fund balances 40,894 (1,541) 61,818 101,171 Fund balances at beginning of year 136 127 87 201 253 961 477 289 Fund balances at end of year 177,021 85 660 315 779 578,460 The accompanying notes ore an integral part of these financial statements, 4f
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2022 (In thousands)
Net change in fund balances - total governmental funds 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 depreciation
($43,479) exceeded capital outlay ($22,318) in the current period.
Transfer of capital assets from proprietary fund to governmental fund does not provide current financial resources and are not reported as transfer in the funds.
The net effect of other miscellaneous transactions involving capital assets (i.e., sales, trade-in, retirements and contributions} is to increase net position.
Certain revenues in the Statement of Activities do not provide current financial resources and therefore, are not reported as revenues in the governmental funds (Charges for services $4,102; Operating Grants $916, Lease revenues $204).
Collections of notes and long-term receivables provide current financial resources to governmental funds but reduce receivables in the Statement of Net Position.
Loan disbursements in the governmental funds use current financial resources but increase receivables in the Statement of Net Position.
Accrued interest expense ($1,204} and 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 the governmental funds.
Proceeds from issuance of long-term debt (Bonds payable $23,546, Loan payable $1,500} provide current financial resources to governmental funds, but the issuance of debt increases long-term liabilities ($25,046} and Prepaid bond insurance ($64) in the Statement of Net Position.
Defeasance of bonds uses current financial resources but decreases long-term liabilities in the Statement of Net pisition Payments of principal on long-term debt ($18,632} and other long-term liabilities ($3,560} use current financial resources in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position.
Net effect of accrued net pension liability and net OPEB liability and the related deferred outflows and deferred inflows of resources are not 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 fun_ds. The net expense of the internal service funds is reported with governmental activities.
Change in net position of governmental activities The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM 101,171
{21,161) 360 14,515 5,222
{2,598) 9,141
{1,251)
{24,982) 23,348 22,192 67,840 (80}
193,717
Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - General Fund Vear Ended June 30, 2022 (In thousands)
Revenues:
Property taxes Sales and use taxes Transient occupancy taxes Other taxes Licenses, fees and permits Intergovernmental revenues Charges for services Fines, forfeits and penalties Use of money and property Lease revenues Other Total revenues Expenditures:
City Council City Administration City Attorney City Clerk Human Resources Finance Police Fire & Rescue Housing & Community Development Economic Development Planning & Building Public Works Community Services Public Utilities Convention, Sports and Entertainment Total expenditures Excess of revenues over expenditures Other financing sources (uses):
Transfers in Transfers out Issuance of loan payable Total other financing sources (uses)
Net change in fund balance Fund balance at beginning of year Fund balance at end of year Adjustment to reconcile to GAAP:
Encumbrance Payment of interfund loan Prepaid maintenance Ending fund balance - GAAP basis Original Budgeted Amounts 93,698 82,882 107,922 7,403 18,464 58,699 33,621 2,725 3,522 616 409 552 872 13,840 7,613 1,253 2,315 6,485 169,665 88,938 9,908 23,336 23,573 37,418 2,210 847 388 273 21279 26,636 (63,215)
(36,5791 (15,300) 136,127 120,827 The accompanying notes are an integral part of these financial statements.
Final Budgeted Amounts 93,698 82,882 107,922 7,403 18,464 105,048 33,621 2,725 2,905 617 616 455 901 872 13,840 7,623 1,248 2,315 9,627 169,775 93,690 50,139 3,701 23,395 26,613 37,996 2,210 847 443 891 12 010 26,636 (55,692) 1500 (27,556}
(15,546) 136127 120.581 CITY OF ANAHEIM Actual on Budgetary Basjs 94,554 103,421 177,057 8,689 20,341 94,500 32,763 3,257 92 617 412 535 703 753 12,207 7,623 1,246 2,034 9,627 165,730 93,690 30,912 1,672 23,395 26,613 35,339 2,121 472 413 434 122,269 29,386 (113,763) 1500
'82,877}
39,392 136127 175,519 1,228 180 94 177,021 Variance with Final Budget 856 20,539 69,135 1,286 1,877 (10,548)
(858) 532 (2,813)
(204) 79,802 (119)
(1,633)
(2)
(281)
(4,045)
(19,227)
(2,029)
(2,657)
(89)
(3751 (30,457}
110,259 2,750 (58,071)
(55,321}
54,938 54,938 SC
Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - Housing Authority Vear Ended June 30, 2022 (In thousands}
Original Final Budgeted Budgeted Amounts Amounts Revenues:
Licenses, fees and permits I ntergovern menta I revenues 110,821 116,447 Use of money and property 4,038 3,748 Lease revenues 145 Other Total revenues 114,859 120,340 Expenditures:
Housing & Community Development 139,952 164,900 Total expenditures 139,952 164,900 Excess (deficiency) of revenues over (under) expenditures (25,093)
(44,560)
Other financing (uses):
Transfers in 5,647 Transfers out (332)
(1,592)
Total other financing uses (332) 4,055 Net change in fund balance (25,425)
(40,505)
Fund balance at beginning of year 87,201 87,201 Fund balance at end of year 61,776 46,696 Adjustments to reconcile to GAAP:
Encumbrance Use of park fee credit Use of transportation fee credit Transportation fee credit reimbursed by development loan Ending fund balance - GAAP basis The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Actual on Budgetary Basis 31 106,343 7,257 145 934 114,710 116,721 116,721 (2,011) 2,557 (1,747) 810 (1,201) 87,201 86,000 126 456 104 (1,026) 85,660 Variance with Final Budget 31 (10,104) 3,509 934 (5,630)
(48,179)
(48,179) 42,549 (3,090)
(155)
(3,245) 39,304 39,304 51
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2022 (In thousands)
Business-~ee Activities - Entererise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment ARTIC Internal Utili~
Utilitll Utili~
Courses Venues Management Total Service Funds ASSETS Current assets:
Cash and cash equivalents 41,841 $
21,975 $
13,659 $
718 $
10,213 88,406 $
20,628 Investments 53,094 23,289 35,419 680 26,483 138,965 53,492 Restricted cash and cash equivalents 34,399 8,222 4,140 7,630 54,391 Restricted investments 54,057 6,211 8,482 68,750 Accounts receivable, net 52,251 24,201 10,128 85 5,681 92,346 2,500 Accrued interest receivable 1,163 242 275 5
158 1,843 216 lnterfund receivable 595 595 Inventories 26,758 889 144 27,791 1,582 Prepaid and other assets 28,135 1,805 10 29,950 1,308 Lease receivable 341 1380 1721 Total current assets 292 634 86834 72103 1632 51555 504,758 79726 Noncurrent assets:
Restricted cash and cash equivalents, less current portion 132,421 31,370 3,668 1,440 168,899 6,500 Restricted investments, less current portion 108,168 8,960 117,128 lnterfund receivable, less current portion 786 786 33,031 Lease receivable, less current portion 4,965 3,568 8,533 Prepaid and other assets 93,039 586 93,625 Capital assets:
Land 34,243 2,970 316 1,949 21,330 $
32,523 93,331 Buildings, structures and improvements 134,968 21,582 710,803 171,082 1,038,435 11,309 Utility plant 1,583,858 572,990 2,156,848 Machinery and equipment 8,399 1,570 40,166 2,862 52,997 71,857 Rights to use leased land 3,200 3,200 Rights to use leased equipment 266 266 2,683 Construction in progress 99346 54,1Q2 9109 15 4942 81 167,595 1745 Total capital assets 1,720,647 630,062 152,792 25,382 777,241 206,548 3,512,672 87,594 Less accumulated depreciation (693,299)
{193 008)
{36,152)
{15,056)
{345,966)
(17,451)
{1300 932)
(57,155}
Capital assets, net 1,027 348 437 054 116 640 10,326 431275 189 097 2,211740 30439 Total noncurrent assets 1366727 468424 129,268 10326 436,869 189 097 2,600,711 69970 Total assets 1.659.361 555 258 201.371 11.958 488424 189 097 3105 469 149 696 DEFERRED OUTFLOWS OF RESOURCES:
Deferred charges on refunding bonds 1,866 4,543 8,801 15,210 Deferred OPEB related items 4,332 1,416 991 75 1,304 8,118 2,117 Deferred pension related items 12,492 4305 2482 171 3445 22,895 5,2Z3 Total deferred outflows of resources 18,690 10264 3 473 246 13 550 46 223 Z,390 (continued)
CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2022 (In thousands)(continued)
Business-time Activiti!lS - Enteri:irise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment ARTIC Internal Utili~
Utili~
Utili~
Courses Venues Management Total Service LIABILITIES Current liabilities (payable from current assets}:
Accounts payable 53,363 $
19,985 $
4,870 $
2,273 1,952 82,443 $
10,016 Wages payable 848 388 181 9
605 2,031 5,319 Interest payable 3,461 3,461 43 Lease payable 264 64 328 886 Other long-term liabilities 31,321 Long-term debts 11,492 2,103 811 35 4,050 $
2,000 20,491 1,251 Unearned revenues 342 342 2,431 Deposits 5,099 646 795 643 4,512 11,695 lnterfund payable 344 7301 7645 39 Total current liabilities (payable from current assets}
71066 23466 6 657 3024 22 223 2000 128 436 51306 Current liabilities (payable from restricted assets}:
Accounts payable 4,523 5,826 335 116 10,800 Wages payable 292 13 3
308 Interest payable 6,721 2,134 853 9,708 Arbitrage rebate liability 130 130 Long-term debts 24835 2642 262 28042 Total current liabilities (payable from restricted assets}
36 501 10602 1 766 119 48988 Total current liabilities 107 567 34068 8423 3024 22342 2000 177 424 51306 Noncurrent liabilities:
lnterfund payable, less current portion 688 688 Interest payable, less current portion 3,747 3,747 Lease payable, less current portion 2,658 11 2,669 574 Other long-term liabilities, less current portion 4,942 4,942 50,950 Long-term debts, less current portion 746,508 243,060 46,048 107 222,668 1,258,391 5,301 Net OPEB liability 13,395 4,937 3,251 188 4,351 26,122 5,680 Net pension liability 58,177 18,545 9,718 674 14,579 101,693 20,277 Provision for decommissioning liability 87779 87779 Total noncurrent liabilities 913 459 267 230 59017 980 241598 3 747 1466 031 82782 Total liabilities 1021 Q26 301298 67440 4004 263 940 5 747 1663 455 134088 DEFERRED INFLOWS OF RESOURCES Deferred item related to leases 5,279 4,887 10,166 Regulatory credits 103,227 2,426 105,653 Regulated business activities 15,703 15,703 Deferred item on refunding bonds 11,206 2,065 457 13,728 Deferred OPEB related items 9,444 3,352 2,338 185 3,151 18,470 4,455 Deferred pension related items 29 857 9 518 5019 346 13187 57927 10866 Total deferred inflows of resources lZ4 Zl6 1z 361 Z8l4 531 21225 221647 15 321 NET POSITION Net investment in capital assets 380,399 223,097 76,571 9,354 215,350 187,097 1,091,868 28,395 Restricted for:
Debt service 31,821 2,643 565 35,029 Capital projects 18,560 3,830 15,553 37,943 Other purposes 8,372 8,372 Unrestricted 43157 17 293 36901 (1685}
1459 (3 747}
933Z8 (20 718}
Total net position 482 309 $
246,863 $
129,590 $
7669 $
216,809 $
183,350 1,266,590 $
7,677 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
(18 434}
Net position of business-type activities 1248156 The accompanying notes are an integral part of these financial statements.
5~
CITY OF ANAHEIM Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Vear Ended June 30, 2022 (In thousands)
Business-:b£pe Agivities - Enterprise Funds Convention, Governmental Sports and Activities -
Electric Water Sanitation Golf Entertainment ARTIC Internal Utili:b£ Utili:b£ U!ili:b£ Courses Venues Management Total Service Funds Operating revenues:
Sales of retail and wholesale electricity, net 408,949 408,949 Transmission revenues 35,744 35,744 Sales of water, net 100,919 100,919 Solid waste collection fees 53,689 53,689 Wastewater fees 15,225 15,225 Street cleaning fees 3,169 3,169 Green fees and cart rentals 8,167 8,167 Facilities rental 27,161 27,161 Concession fees 2,075 2,944 5,019 Charges for services 90 90 $
154,283 Lease revenues 376 1,481 1,857 Other 3 217 1320 2491 377 667 8072 221 Total operating revenues 448286 102,239 74574 10709 32253 668 061 154504 Operating expenses:
Cost of purchased power 271,293 271,293 Fuel and generation of power 399 399 Cost of purchased water 52,079 52,079 Treatment and pumping of water 5,157 5,157 Maintenance, operations and administration 46,052 16,141 60,018 7,737 23,068 $
76 153,092 54,685 Insurance premiums and claims 23,676 Compensated absences and other benefits 75,966 Depreciation 48 24Z 13,440 2920 682 19,043 2,3Zl 86,Z03 5034 Total operating expenses 365,991 86,8lZ 62938 8,419 42,lll 2,44Z 568 Z23 159 361 Operating income (losses) 82,295 15422 11,636 2 290 (9,858)
(2,44Zl 99,338 (4,85Zl Nonoperating income (expenses):
Intergovernmental revenues 603 603 Investment income (losses)
(3,102)
(1,048)
(1,749)
(12)
(996)
(6,907)
(2,048)
Interest expense (21,598)
(7,523)
(1,476)
(6)
(8,218)
(78)
(38,899)
(55)
Bond issuance costs (1,709)
(870)
(1,272)
(3,851)
Gain (loss) from disposal of capital assets 12!
12!
59 Total nonoperating expenses (26409) 19 441!
(2,622)
(18)
(10 488)
(Z8)
(49 056)
(2M4l Income (losses) before contributions and transfers 55,886 5,981 9,014 2,272 (20,346)
(2,525) 50,282 (6,901)
Capital contributions 3,584 26,844 177 460 298 31,363 Transfers in 1,422 613 128 5,706 4,051 11,920 5,740 Transfers out (20,281)
(1,546)
(2789)
(24 616)
(28)
Change in net position 40,611 31,892 6,530 2,272 (14,180) 1,824 68,949 (1,189)
Net position at beginning of year 441698 214971 123 060 539Z 230 989 181526 8866 Net position at end of year 482,309 $
246 863 $
129,590 $
7,669 $
216,809 $
183,350 7,677 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
(1,109)
Change in net position of business-type activities 67,840 The accompanying notes are an integral part of these financial statements.
Si
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)
Business-!J1E!e Activities - Entemrise Funds Governmental Convention, Activities -
Sports&
Internal Electric Water Sanitation Golf Entertainment ARTIC Service Utili!J1 Utili!ll Utili!ll Courses Venues Management Total Funds Cash flows from operating activities:
Receipts from customers and users 443,196 $
102,184 $
70,807 $
11,206 $
25,845 653,238 Receipts from interfund services provided 2,144 351 38 2,533 153,871 Receipts from leases 431 1,515 1,946 Payments to suppliers (251,794)
(50,428)
(49,822)
(6,425)
{8,268) $
(76)
(366,813)
(34,374)
Payment of decommissioning costs (4,180)
(4,180)
Payments for salaries, wages and other benefits (48,471)
(15,781)
(8,655)
(543)
(16,495)
(89,945)
(93,454)
Payments for interfund services used (14,696)
(6,141)
(4,834)
(219)
(3,858)
(29,748)
(5,067)
Payments for insurance premiums and claims (21,975)
Other receipts 2673 2673 638 Net cash provided by (used for) operating activities 126 630 30 185 10207 4019 112611 1761 169 704 (3611 Cash flows from noncapital financing activities:
Receipt of interfund balances 571 571 22 Payment of interfund balances (344)
(706)
(1,050)
(357)
Transfers in 171 613 51 835 5,740 Transfers out (20,281)
(1,546)
(2,789)
(24,616)
(28)
Operating grant receipts 603 603 Net cash provided by (used for) noncapital financing activities (19 539) 11277)
(21861 (7061 51 (23 657) 5377 Cash flows from capital and related financing activities:
Proceeds from sale of capital assets 83 Capital contributions 2,429 10,998 13,427 Capital purchases (52,909)
(50,687)
(3,041)
(1,816)
{7,719)
(116,172)
(4,211)
Proceeds from issuance of loan 6,500 Proceeds from issuance of bonds 132,921 50,473 620 184,014 Costs of issuance (1,008)
(387)
(618)
(2,013)
Principal payments on long-term debts (33,096)
(5,375)
(1,315)
(28)
(6,105)
(4,000)
(49,919)
(lll Principal payment on leases (278)
(62)
(340)
{1,223)
Interest payments (28,168)
(8,169)
(2,116)
(6)
(6,538)
(44,997)
(12)
Receipt of interfund balances for capital purposes 7,301 7,301 Transfer in for capital purpose 1,Z5l lZ8 5706 4QOO 11085 Net cash provided by (used for) capital and related financing activities 21142 (3147)
(63441 (1912) 17 353) 2 386 1126 Cash flows from investing activities:
Purchase of investment securities (102,668)
(9,953)
(23,716)
(700)
(8,899)
(145,936)
(21,482)
Proceeds from sale and maturity of investment securities 75,896 24,296 13,506 17,484 131,182 22,353 Interest received 4326 1562 1032 3
701 7 624 1026 Net cash provided by (used for) investing activities
/22 4461 15~05
/91781 (697) 9 286 (7 130) 18~7 Increase (decrease) in cash and cash equivalents 105 787 41666 (7 5011 704 672 (251 141303 8039 Cash and cash equivalents at beginning of the year 1oz 874 19 901 2/3968 18611 Z5 170 39J 19089 Cash and cash equivalents at end of the year 208,661 $
61,567 $
21467 $
718 $
19,283 311,696 $
27,128 (continued) 5!:
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)
Business-t{ee Activities - Entererise Funds Convention, Governmental Sports &
Activities -
Electric Water Sanitation Golf Entertainment ARTIC Internal Utilit[
Utilit[
Utilit[
Courses Venues Management Total Service Funds Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:
Operating income (loss) 82,295 $
15,422 $
11,636 $
2,290 $
{9,858) $
{2,447) $
99,338 $
(4,857)
Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Interest received from leases 82 95 177 Depreciation 48,247 13,440 2,920 682 19,043 2,371 86,703 5,034 Cancellation of construction in progress 1,148 1,148 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
Accounts receivable (478)
(1,012)
(1,061)
' (5)
(4,975)
(7,531) 1,937 Inventories (5,352)
(681)
(76)
(6,109)
(320)
Prepaid and other assets 20,306 20,306 532 Lease receivable 349 1,420 1,769 Accounts payable and other accrued liability (911) 4,464 (529) 817 1,192 5,033 1,491 Wages and benefits payable (11,260)
(3,904)
(2,764)
(213)
- (6,745)
(24,886)
(3,451)
Unearned revenues 39 39 126 Deposits (2,324) 114 5
524 9
(1,672)
Compensated absences and self-insurance liabilities (853)
Provision for decommissioning liabilities (4,180)
(4,180)
Deferred inflow related to leases (376)
(1,481)
(1,857)
Regulatory credits 232 l:!.94 1426 Total adjustments 44335 l4,Z63
{1429}
1,729 8 59Z 2,3Zl Z0:366 4,496 Net cash provided by (used for) operating activities 126,630 $
30,185 $
10,207 $
4,019 $
{1261) $
176) $
169 704 $
(361)
(Continued)
CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)
Business-t)l'.ge Activities - Entergrise Funds Convention, Governmental Sports &
Activities -
Electric Water Sanitation Golf Entertainment ARTIC Internal Utili!)I'.
Utili!)I'.
Utili!)I'.
Courses Venues Management Total Service Funds Schedule of noncash operating, investing, capital and noncapital financing activities:
Increase (decrease) in fair value of investments (8,396) $
(2,537) $
(2,740) $
(20) $
(1,718)
(15,411) $
(3,023)
Capital assets financed through leases 117 117 834 Capital contributions 1,155 579 177 460 $
298 2,669 Refunded bond proceeds deposited in refunding bond escrow agent 202,399 114,092 224,823 541,314 Defeasance of outstanding revenue bond principal (195,545)
(103,060)
(204,063)
(502,668)
Cost of issuance - underwriter discounts (701)
(483)
(1,261)
(2,445)
Increase in account receivable related to capital contribution (15,267)
(15,267)
Increase in Decommissioning liabilities 11,070 11,070 Decrease in Accrued long-term liabilities (94)
(94)
Decrease in deferred inflow of resources - regulated business activity (10,976)
(10,976)
Increase in accounts payable related to capital assets 5,311 4,433 219 85 153 10,201 532 Amortization of bond premium (discount), deferred outflow/inflow, net 6,930 950 613 30 8,523 Increase in accrued interest payable 315 304 1,710 78 2,407 Reconciliation of cash and cash equivalents:
Cash and cash equivalents 41.841 $
21,975 $
13,659 $
718 $
10,213 $
88,406 $
20,628 Restricted cash and cash equivalents, current portion 34,399 8,222 4,140 7,630 54,391 Restricted cash and cash equivalents, noncurrent portion 132121 31320 3,668 1440 168,899 6 500 Total cash and cash equivalents 208,661 $
61567 $
21,467 $
718 $
19,283 311,696 $
27,128 The accompanying notes are an integral part of these financial statements.
S'i
Statement of Fiduciary Net Position (Deficit)
Fiduciary Funds June 30, 2022 (In thousands)
ASSETS Cash and cash equivalents Investments Accrued interest receivable Special assessment receivable Notes receivable, net Prepaid and other assets Unamortized prepaid bond insurance Lease receivable, net Right to use lesed land Accumulated amortization Total assets LIABILITIES Accounts payable Wages payable Interest payable Long-term liabilities:
Other long term liabilities, current portion Lease payable, current portion Long-term debt, current portion Other long term liabilities, less current potion Lease payable, less current portion Long term debt, less current portion Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding bonds Deferred item related to leases Total deferred outflows of resources NET POSITION Restricted for individuals, organizations, and other governments (Deficit)
Total net position(deficit)
Successor Agency Private Purpose Trust Fund 27,619 36 861 409 383 7,633 19,613 (729) 55825 30 2
3,431 1,992 382 10,269 18,523 18,788 131,Q8Q 185,103 293 7 523 781Q (137 094)
(137,094)
The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Custodial Funds External Investment eools Others 1,122$
3,356 2,908 3,479 23 9
4053 6844 6
6 4,053 6,838 4,053 $
6,838 SE
Statement of Changes in Fiduciary Net Position (Deficit)
Fiduciary Funds Year Ended June 30, 2022 (In thousands)
ADDITIONS Property tax increments Special assessment collections from Community Facility Districts Deposits to pooled investments Lease revenues Deposits Donation collections Miscellaneous receipts on behalf of inmates Interest income Total collections on behalf of other individuals, organizations and other governments DEDUCTIONS Salaries and administration Program expenses Payments Interest payments Debt service payments - Community Facilities Districts Distributions from pool investments Total deductions Change in net position Net position (deficit) at beginning of year, as restated Net position (deficit) at end of year Successor Agency Private Purpose Trust Fund 17,162 375 870 18,407 210 1,064 5,472 6,746 11,661 (148,755)
{137,094}
The accompanying notes are an integral part of these financial statements.
CITY OF ANAHEIM Custodial Funds External Investment Pools Others 3,218 8,089 94 2
3 (97) 10 7,992 3,327 63 1,732 3,023 7,719 7,719 4,818 273 (1,491) 3,780 8,329 4,053 $
6,838
{This page was intentionally left blank) 6(
Notes to Financial Statements (Amounts in thousands)
NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:
The financial reporting entity As defined by U.S. generally accepted accounting principles (GAAP) that are established by the Governmental Accounting Standards Board (GASB),
the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable.
Financial accountability is defined as l) appointment of a voting majority of the component unit's board, and either a) the ability to impose will by the primary government, orb) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government; and 2) the component unit is fiscally dependent on and there is a potential for the component unit to provide specific financial benefit to or impose financial burden on the primary government regardless of whether the component unit has a) a separately elected government board, b) a governing board appointed by a higher level of government, or c) a jointly appointed board.
The accompanying financial statements present the City of Anaheim (City),
the primary government, and its component units. The financial data of the component units are included in the City's reporting entity because of the significance of their operational or financial relationships with the City.
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 same as the City. They are reported as part of and accountable to the City and blended into the government-wide and fund financial statements.
Anaheim Housing Authority (Housing Authority) is a separate entity primarily funded by the U.S. Department of Housing and Urban Development to administer funds received under the Federal Housing Assistance Payments program. City Council members, in separate session, serve as the governing board of the Housing Authority. All budgeting, accounting and administrative functions of the Housing Authority are performed by the City. The financial activity of the Housing Authority has been blended into the City's Annual Comprehensive Financial Report (ACFR) in the government-wide governmental activities and in the fund financial statements as the Housing Authority Special Revenue Fund.
Anaheim Public Financing Authority (APFA). a joint powers authority, was established as a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments and mechanisms.
CITY OF ANAHEIM City Council members, in separate session, serve as the governing board of the APFA. Financial activity of the APFA has been blended into the City's ACFR into various governmental and business-type activities and funds of the City as applicable.
Anaheim Housing and Public Improvement Authority (AHPIA), a joint power authority, was created by and between the City and the Anaheim Housing Authority as a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments and mechanisms.
Members of the City Council of the City serves as the members of the Board and Directors of the AH PIA. Financial activity of the AH PIA has been blended into the City'sACFR into various business-type activities and funds of the City as applicable.
The City is a participant in four joint ventures and jointly-owned properties (see note 18), which are not considered part of the financial reporting entity, as the City does not have significant equity interests in the joint ventures and jointly-owned properties.
The City is a participant in the California Municipal Finance Authority (CMFA), a non-profit Joint Power Authority created to strengthen local communities by assisting with the financing of economic development and charitable activities throughout the State of California. The CMFA acts as conduit issuer by assisting local governments, non-profits and businesses with the issuance of taxable and tax-exempt financing aimed at improving the quality of life in California. The City has no financial, budgeting and operational obligations and responsibilities of the CMFA.
The CMFA is a jointly governed organization. The City has recorded assets and liabilities from the City's debt issuances through the CMFA in the business-type activities and funds of the City as applicable (see note 10).
Basic financial statements In accordance with GASB Statement No. 34Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, the basic financial statements include both government-wide and fund financial statements.
The government-wide financial statements (Statement of Net Position and Statement of Activities) report on the City and its component units, excluding fiduciary activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. All activities, both governmental and business-type, are reported in the government-wide financial statements using the economic resources measurement focus and the accrual basis of accounting, which includes long-term assets and receivables as well as long-term debt and liabilities. The government-wide financial statements 61
focus more on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period.
Generally, the effect of interfund activity has been removed from the government-wide financial statements, except for interfund services provided and used. Net interfund activity and balances between governmental activities and business-type activities are shown as internal balances, net, in the government-wide financial statements. The "doubling up" effect of internal service fund activity has been eliminated from the government-wide financial statements with the expenses shown in the various functions and programs on the Statement of Activities.
Further, certain eliminations are also made to transfers of resources between funds in the fund financial statements so that only the net amount of the transfers are shown in the governmental activities and business-type activities columns.
The government-wide Statement of Net Position reports all financial and capital resources of the City (excluding fiduciary funds). It is displayed in a format of assets and deferred outflows of resources less liabilities and
- deferred inflows of resources equal net position, with the assets and liabilities shown in order of their relative liquidity. Net positions are required to be displayed in three components: 1) net investment in capital assets
- 2) restricted, and 3) unrestricted. Investment in capital assets represents capital assets net of accumulated depreciation which is reduced by outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position is those with constraints placed on their use by either: 1) creditors (such as through debt covenants), granters, contributors, or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation. All net positions not otherwise classified as restricted, are shown as unrestricted. Generally, the City would first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net positions are available.
The government-wide Statement of Activities demonstrates the degree to which both direct and indirect expenses of the various functions and programs of the City are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or program.
Indirect expenses for administrative overhead are allocated among the functions and programs using a full cost allocation approach and are presented separately to enhance comparability of direct expenses between governments that allocate direct expenses and those that do not. Interest on general long-term debt is not allocated to the various functions. Program revenues include: 1) charges to customers or users who purchase, use or CITY OF ANAHEIM directly benefit from goods, services or privileges provided by a particular function or program and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Taxes, unrestricted investment income and other revenues not identifiable with particular functions or programs are included as general revenues. The general revenues support the net costs of the functions and programs not covered by program revenues.
Also, part of the basic financial statements are fund financial statements for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The focus of the fund financial statements is on major funds, as defined by GASB Statement No. 34. Although this reporting model sets forth minimum criteria for determination of major funds (a percentage of assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of fund category and of the governmental and enterprise funds combined), it also gives governments the option of displaying other funds as major funds. Other non major funds, as well as the internal service funds, are combined in a single column on the fund financial statements.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Housing Authority Special Revenue Fund accounts for the providing of housing assistance to low and moderate-income families in the Anaheim area. Financing is provided primarily from Federal Section 8, U.S. Department of Housing and Urban Development (HUD) receipts.
The City reports the following major enterprise funds:
The Electric Utility Fund accounts for the operation of the City's electric utility, a self-supporting activity, which renders services on a user charge basis to residents and businesses located in Anaheim.
The Water Utility Fund accounts for the operation of the City's water utility, a self-supporting activity, which renders services on a user charge basis to residents and businesses located in Anaheim.
The Sanitation Utility Fund accounts for the operation of the City's solid waste and sanitation program, a self-supporting activity, which provides for the collection and disposal of solid waste, street sweeping, and sanitary sewer cleaning on a user charge basis to residents and businesses located in Anaheim.
The Golf Courses Fund accounts for the operation of the Anaheim Municipal ("Dad Miller") Golf Course and the Anaheim Hills Golf Course, a self-supporting activity that renders services on a user charge basis.
The Convention, Sports & Entertainment Venues Fund accounts for the operations of the Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim. See note 19 for further discussions of the Angel Stadium of Anaheim and The City National Grove of Anaheim.
Anaheim Regional Transportation lntermodal Center (ARTIC)
Management Fund accounts for the operation and maintenance of the ARTIC that serves as a rail station for Amtrak intercity rail, Metrolink commuter rail and bus station. The ARTIC renders services on a user charge basis.
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 statements. Because the principal users of the internal service funds are the City's governmental activities, the assets and liabilities of the internal service funds are consolidated into the governmental activities column of the government-wide Statement of Net Position. The costs of the internal service fund services are spread to the appropriate function or program on the government-wide Statement of Activities and the revenues and expenses within the internal service funds are eliminated from the government-wide financial statements to avoid any doubling effect of these revenues and expenses. The City operates four internal service funds:
The General Benefits and Insurance Fund is used to account for employee compensated absences, retirement and health benefits, and self-insurance programs.
The Motorized Equipment Fund is used to account for motorized equipment used by City departments.
The Information and Communication Services Fund is used to account for data processing and telecommunication services provided to City departments.
The Municipal Facilities Maintenance Fund is used to account for office maintenance services and equipment used by City departments.
Fiduciary Funds account for assets held by the City in a trustee or custodian capacity on behalf of others and, therefore, are not available to support City programs. The Fiduciary Funds are not included in the government-wide financial statements as they are not assets of the City. The City reports the following fiduciary funds:
CITY OF ANAHEIM The Successor Agency Private Purpose Trust Fund is used to account for resources legally held in trust for use by the Successor Agency to the Anaheim Redevelopment Agency (Successor Agency). The Former Anaheim Redevelopment Agency, a former component unit of the City, dissolved on February 1, 2012 under the State of California Assembly Bill 1X26.
The Custodial Funds are used to account for the monies collected and paid on behalf of other individuals, governments, and organizations.
The City reports the following activities in the Custodial Funds: 1)
External Investment Pools is used to account for the external portion of the City's investment pool, which commingles resources of legally separate entities administered by the City in an investment portfolio for the benefit of all participants. The entities include three Joint Powers Authorities (JPA) governed by local boards. The City separately maintains these entities' money in three individual funds; these funds represent the assets, primarily cash and investment, and the related net position held by the City for disbursements on demand;
- 2) Community Facility Districts (CFDs) accounts for collections of mello-roos special assessments, payments for the conduit debts and the administration for the CFDs located in the City; 3) Money seized by law enforcements pending judgement and the disbursements of which on order; 4) bail bonds; 5) Inmate Welfare Fund accounts for miscellaneous receipts collected on behalf of inmates and payments of expenditures for their benefits; and 6) Collections of utility helping hand donations and the related charity disbursements.
Measurement focus and basis of accounting The governmental funds financial statements are prepared on a current financial resources measurement focus and modified accrual basis of accounting. To conform to the modified accrual basis of accounting, certain modifications must be made to the accrual method. These modifications are outlined below:
Revenue is recorded when it is earned, measurable and available (received within 60 days after year-end). Revenue considered susceptible to accrual includes: property taxes, sales and use taxes, transient occupancy taxes, licenses, fees and permits, intergovernmental revenues (including motor vehicle license fees), charges for services, fines, forfeits and penalties, and investment income.
Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been
accumulated in the debt service fund for payments to be made early in the following year.
Disbursements for the purchase of capital assets providing future benefits are considered expenditures. Bond proceeds are reported as other financing sources.
With this measurement focus, operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. This is the traditional basis of accounting for governmental funds and also is the manner in which these funds are normally budgeted. This presentation is deemed most appropriate to: l) demonstrate legal and covenant compliance, 2) demonstrate the sources and uses of liquid resources, and 3) demonstrate how the City's actual revenues and expenditures conform to the annual budget. Since the governmental funds financial statements are presented on a different basis than the governmental activities column of the government-wide financial statements, a reconciliation is provided immediately following each fund statement.
These reconciliations briefly explain the adjustments necessary to transform the fund financial statements into the governmental activities column of the government-wide financial statements.
The proprietary funds financial statements are prepared on the same basis (economic resources measurement focus and accrual basis of accounting) as the government-wide financial statements. Therefore, most lines for the total enterprise funds on the proprietary funds financial statements will directly reconcile to the business-type activities column on the government-wide financial statements. Because the enterprise funds are combined into a single business-type activities column on the government-wide financial statements, certain interfund activities between these funds are eliminated in the consolidation for the government-wide financial statements, but are included in the fund columns in the proprietary funds financial statements. The net costs of the internal service funds are also partially allocated to the business-type activities column on the government-wide financial statements. A reconciliation of the total enterprise funds on the fund financial statements to the business-type activities column on the government-wide financial statements is provided on the face of the fund financial statements.
Enterprise funds account for operations where the intent of the City is that the costs-of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges and fees. Under GASB Statement No. 34, enterprise funds are also required for any activity whose principal revenue sources meet any of the following criteria: l) any activity that has issued debt backed CITY OF ANAHEIM solely by the fees and charges of the activity, 2) the cost of providing services for an 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 to establish activity fees or charges to recover the cost of providing services, including capital costs.
On the proprietary funds financial statements, operating revenues are those that flow directly from the operations of the activity, i.e. charges to customers or users who purchase or use the goods or services of that activity. Operating expenses are those that are incurred to provide those goods or services. Non-operating revenues and expenses are items such as investment income and interest expense that are not a result of the direct operations of the activity.
The Electric and Water Utilityfundsfollowthe uniform system ofaccounts prescribed by the Federal Energy Regulatory Commission (Electric Utility) and the California Public Utilities Commission (Water Utility).
The utilities are not subject to the regulations of these commissions.
The reporting focus for the fiduciary funds is upon net position and changes in net position and employs accounting principles similar to proprietary funds.
Cash and investments The City pools available cash from all funds for the purpose of increasing income through investment activities. Investments in U.S. Treasury obi igations and agency securities and medium term corporate notes are carried at fair value based on quoted market prices. Nonparticipating guaranteed investment contracts, flexible repurchase agreements are carried at cost-based measure. Money market mutual funds and participating interest-earning investment contracts that have a remaining maturity at the time of purchase of one year or less are carried at amortized cost (which approximates fair value). The City's investment in the State of California Local Agency Investment Fund (LAIF) is carried at fair value based on the value of each participating dollar as provided by LAIF. LAIF is authorized by California Government Code (Government Code) Section 16429 under the oversight of the Treasurer of the State of California. Commercial paper, participating guaranteed investment contracts and negotiable certificates of deposit are carried at amortized cost (which approximates fair value). Interest income, which includes changes in fair value, on investments is allocated to all funds on the basis of daily cash and investment balances. See note 3 for further di_scussion.
For purposes of the basic financial statements, the City considers cash equivalents to be highly liquid short-term investments that are readily convertible to known amounts of cash and mature within three months of the date they are acquired. Cash and cash equivalents are included
in the City's cash and investments pool and in accounts held by fiscal agents.
Inventories Inventories are stated at average cost which consist of expendable supplies, electrical parts, and vehicle repair parts. The cost of such Inventories are recorded as expenditures/expenses when consumed rather than when purchased.
Prepaid and other assets Certain payments to vendors such as insurance premiums, prepaid power, prepaid rent, prepaid software maintenance and deposits for real property acquisitions reflect costs applicable to future periods and are recorded as prepaid and other assets in both government-wide and fund financial statements. The costs of these prepaid items are recorded as expenditures/expenses in the period when consumed or when the City receives title to the real property rather than when purchased.
Land held for resale The Housing Authority has recorded parcels of land held for resale in their financial records. The properties held for resale are for the primary purpose of developing low and moderate income housing and are recorded at the lower of cost or estimated net realizable value.
At June 30, 2022, land held for resale with an original cost of $10,454 was recorded net of the allowance for decline in value of $4,422 and totaled $6,032, with this amount offset by a restriction of fund balance for low and moderate income housing in the Housing Authority major governmental fund financial statement.
The Long Range Property Management Plan non major Special Revenue Fund records parcels of land held for resale transferred from the Successor Agency to the Anaheim Redevelopment Agency on January 1, 2016 under the authorization of the approved Long Range Property Management 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 land held for resale equal to the net realizable value of these assets as recorded in the Successor Agency's financial records in the amount of $15,295 net of allowance for decline in value of $5,566 with a corresponding restriction in fund balance for future economic development.
Notes receivable In the government-wide financial statements, notes receivable of
$74,700 includes accrued interest receivable of $18,878, ranging from 3% to 10% interest per annum, and is net of allowances of $2,545 for CITY OF ANAHEIM uncollectible accounts at June 30, 2022. Allowances for uncollectible accounts were estimated based on certain assumptions; therefore, actual results could differ from the estimates.
In the governmental funds financial statements, disbursements for providing notes and loan receivables are recorded as expenditures while the collections of these receivables are recorded as revenues. Due to the extended period oftime over which notes receivable are to be collected and the contingent nature of certain sources of repayment, the City has recorded deferred inflows of resources equal to the outstanding principal and accrued interest balance, net of allowances of the notes receivable.
Leases Lessor: The City is a lessor for non-cancellable leases of office space, building and land. The City recognizes a lease receivable and a deferred
. inflow of resources in the government-wide, governmental and proprietary funds' financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (l} the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the interest rate as stated on the lease agreements.
When the interest rate is not stated, the City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will re-measure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
The City is also a lessor of various ground leases that lease payment requirements are dependent on residual receipts generated from
the leasing assets. The City records the residual receipts as inflow of resources when receives.
Lessee: The City is a lessee for noncancellable leases of equipment, building and land. The City recognizes a lease liability and an intangible right-to-use leased assets in the government-wide financial statements and proprietary fund financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The leased asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the leased asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (l) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeassure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Leased assets are reported with other capital assets and lease liabilities are reported with long-term debts on the statement of net position.
Payments due under the lease contracts include fixed payments plus, for certain of the City's leases, variable payments, primarily maintenance charges. Maintenance charges are accounted for as outflow of resources CITY OF ANAHEIM when incurred, and are not included in the measurement of the lease liability.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable amounts expected to be payable by the City under residual value guarantees the exercise price of a purchase option if the group is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if the lease term reflects the City exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of the city's land leases.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate as of the commencement of the lease term.
Restricted assets Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are classified as restricted on the Statement of Net Position or Balance Sheet, because they are maintained in separate bank accounts and their use is limited by applicable debt covenants. Additionally, resources set aside by the Electric Utility for the future decommissioning of 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, are classified as restricted on both the government-wide Statement of Net Position and proprietary funds Statement of Net Position.
Capital assets Under GASS Statement No. 34, all capital assets, whether owned by governmental activities or business-type activities are recorded and depreciated in the government-wide financial statements. No long-term capital assets or depreciation are shown in the governmental funds financial statements.
Capital assets, including public domain infrastructure (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the City), are defined as assets with an initial, individual cost of more than $5 ($50 for infrastructure) and an estimated useful life of greater than one year.
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value rather than fair value at the date of donation.
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. Major improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.
Major outlays for capital assets and improvements are capitalized as the projects are constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Buildings, structures and improvements Utility plant Machinery and equipment Infrastructure Sta BS years Sta 75 years 2 to 40 years 25 to 75 years The net book value of capital assets retired or disposed of, related salvage value proceeds and the costs of removal are recorded in accumulated 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 assets.
Capital assets transferred between funds are transferred at their net book value (cost less accumulated depreciation), as of the date of the transfer.
Debt issuance costs Debt issuance costs, with the exception of prepaid insurance costs, are recognized as outflow of resources (expense/expenditure) in the-CITY OF ANAHEIM period when the debt is issued. Prepaid insurance costs are capitalized and amortized over the lives of the related debt issues on a basis that approximates the effective-interest method.
Bond refunding costs Bond refunding costs are deferred and amortized over the life of the new bond or over the life of the old bond, whichever is shorter, on a basis that approximates the effective-interest method. These costs are shown as a deferred outflow of resources on the Statement of Net Position.
Accretion 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 value of the bond or COP. The accreted value is recognized as it accrues by fiscal year.
Deferred outflows of resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. In the government-wide statement of net position, the City reported the following in this category:
- l. Deferred charges on refunding bonds - A deferred charge on refunding bonds results from the difference in the carrying value of debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City reported $25,972 (this amount includes $3,825 deferred loss from refunding bonds and $22,147 payments of future interest resulting from partial defeasance of capital appreciation bonds) in governmental activities and $15,210 in business-type activities in this category.
- 2. Deferred outflows of OPES related items - these balances represent current fiscal year contribution to the OPES Trust that will be applied as a reduction in net OPES liability in the next fiscal year; or other items arising from changes in actuarial assumptions, difference between actual and projected experience, difference between actual and projected investment gains/losses or changes in a fund's proportionate share of the net OPES liability; the amount will be amortized and reported as a component in OPES expense in future fiscal years (refer to discussion of OPES Plan). The City reported
$26,629 in governmental activities and $8,118 in business-type activities in this category.
6'i
- 3. Deferred outflows of resources of pension related items - these balances represent current fiscal year contribution to the pension 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 assumptions, difference between actual and projected experience, difference between actual and projected investment gains/losses or changes in a fund's proportionate share of the net pension liability; the amount will be amortized and reported as a component in pension expense in future fiscal years (refer to discussion of Pension Plans). The City reported $90,512 in governmental activities and
$22,895 in business-type activities in this category.
Deferred inflows of resources In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents acquisitions of net assets that apply to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City reported the following in this category:
- 1.
Deferred inflow related to unavailable resources, which include revenues, notes and long-term receivable, due from the Successor Agency, measured under the modified accrual basis of accounting reported in governmental funds. These amounts are deferred and will be recognized as an inflow of resources in the period that the amounts become available.
Governmental Funds:
Grants General Fund Housing Authority Nonmajor Governmental Funds Total 894 $
16,185 $ 17,079 Other revenues 7,973 140 8,113 Long-term notes and 657 49,863 21,775 72,295 loans receivable Total 8,630 $
50,757 $
38,100 $ 97,487
- 2. Regulatory credits - accumulated from collections of the Electric and Water Utility customers reported in business-type activities.
These amounts provide recovery in current period for costs to be incurred in future periods (refer to the discussion of Regulatory Credits below).
Enterprise Funds:
Electric Utility Water Utility Total CITY OF ANAHEIM Business-type Activities 103,227 2426 105,653
- 3. Deferred inflow from regulated business activities reported in business-type activities totaled $15,703 represented the excess funding of asset retirement obligations primarily resulting from the accumulation of investment earnings from the decommissioning irrevocable trust account. Refer to note l on page 69 of the notes to the financial statements of this report.
- 4. Deferred inflow related to leases - the City, as lessor, recognizes a lease receivable and a deferred inflow of resources which is initially measured at the present value of lease payments expected to be received during the lease term adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources is recognized as a revenue over the life of the lease term. The City reports $12,706 in governmental activities and $10,166 in business-type activities in this category.
- 5. Deferred inflow related to refunding bonds includes gains from debt refunding. The City reports a total of $13,728 in business-type activities in this category.
- 6. Deferred inflows of resources related to OPEB represents changes in total OPEB liability arising from changes in actuarial assumptions; difference between actual and projected plan experiences; difference between actual and projected investment gains/losses or changes of the Fund's proportionate share of the net OPEB liability. This amount will be amortized and included as a component in OPEB expenses in future fiscal years. Refer to discussion of the OPEB Plan in note 14 of the notes to the financial statements on pages 109-112 of this report.
The City reported $51,214 in governmental activities and $18,470 in business-type activities in this category.
- 7. Deferred inflows of resources related to pension are certain changes in total pension liability and fiduciary net position that are to be amortized and recognized as a component in pension expenses in future fiscal years. These are the balances that arise from changes in actuarial assumptions; difference between actual and projected experience; difference between actual and projected investment gains/losses or changes in the Fund's proportionate share of the Plan's net pension liability. Refer to discussion of Pension Plans in note 13 of the notes to the financial statements on pages 103-108 of GE
this report. The City reported $187,023 in governmental activities and
$57,927 in business-type activities in this category.
Regulatory credits The Electric Utility's Rates, Rules, and Regulations provide for the Rate Stabilization Account (RSA), which contains two components:
the Power Cost Adjustment (PCA) that was adopted by City Council on April l, 2001, and the Environmental Mitigation Adjustment (EMA) that was adopted by the City Council on January 13, 2009. The PCA has mitigated variations in the power supply or fuel costs. The EMA allows the recovery of environmental mitigation costs, such as greenhouse gas emissions costs, the marginal cost differential between renewable power and traditional fossil-fuel-based power. The RSA provides the City with operational and billing flexibility to mitigate material fluctuations in the cost of energy, loss of revenues, or unplanned costs including unexpected long-term loss of a generating facility, unplanned limits on the ability to transmit energy to the City, or major disasters. The RSA funded by PCA and EMA collections is billed to customers through standard rates.
The Electric Utility restructured its rates effective September l, 2015 in order to more effectively align the recovery of the Electric Utility's costs with the nature of the costs incurred. This was accomplished by reducing the Power Cost Adjustment (PCA) and the Environmental Mitigation Adjustment (EMA) with corresponding increases to base rates. The restructuring was designed to be revenue neutral to the customer.
During fiscal year 2022 the Electric Utility recognized $40,000 in RSA revenues to mitigate the impact of environmental mitigation costs.
This amount is included in the operating revenues Sales of retail and wholesale electricity of the Electric Utility Enterprise Fund.
As of June 30, 2022, the PCA rates were $0.0100 per kWh for residential, general commercial, industrial and municipal customers and $0.0048 for large commercial customers. The Electric Utility recorded deferred inflows of resources for regulatory credits related to PCA totaled
$45,638. The EMA rates were $0.0105 per kWh for residential, general commercial, industrial and municipal customers and $0.0128 per KWh for large commercial customers. The deferred inflows of resources recorded for regulatory credits related to EMA totaled $57,589.
The Water Utility's rates, rules and regulations provide for a water 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 the City's Water Utility. This rate stabilization account (RSA) provides CITY OF ANAHEIM increased flexibility by allowing the Water Utility to maintain financial performance indicators and goals specified in bond covenants. The account is funded through expense reimbursements such as water supply cost refunds received from the Metropolitan Water District and Orange County Water District and other miscellaneous credits and revenue. At June 30, 2022, the deferred inflows of resources recorded for regulatory credits totaled $2,426 for the Water Utility. During fiscal year 2022, no RSA revenue was recognized.
Compensated absences Compensated absences, vacation and sick pay, for all City employees are generally paid by the General Benefits and Insurance Fund, an internal service fund. The General Benefits and Insurance Fund is reimbursed through payroll charges to all other funds based on estimates of benefits to be earned and used during the fiscal year. It is the policy of the City to pay all accumulated vacation pay when an employee retires or terminates. Accumulated sick pay in excess of 175 hours0.00203 days <br />0.0486 hours <br />2.893519e-4 weeks <br />6.65875e-5 months <br /> per employee is paid to employees at their then current rate of pay in January each year or upon termination from the City. Employees are paid for all accumulated sick pay when they retire from the City. Vested vacation and sick pay benefits are accrued when incurred in the General Benefits and Insurance Fund and atJune 30, 2022, totaled $23,752 and is included in other long-term liabilities in the Statement of Net Position.
Also included in long-term liabilities in the Statement of Net Position at June 30, 2022, is compensatory ti me I ia bility of $707.
Changes in the City's compensated absences liability in fiscal year 2022 were as follows:
Estimated compensated absences liability at beginning of year Estimated compensated absence benefits earned Compensated absences used Compensated absences liability at end of year 24,665 26,923 (27,129) 24,459 Asset Retirement Obligations (ARO)-Provision for decommissioning costs GASB Statement No. 83, Certain Asset Retirement Obligations effective July l, 2018. This standard requires the City to record a liability and deferred outflow of resources associated with the retirement of tangible capital assets that it has an enforceable legal obligation to take specific actions to retire. GASB Statement No. 83 requires governmental entities to record a liability and a corresponding deferred outflow at the time there is an external obligating event such as a federal or state regulation, a legally binding contract or court judgment and when there is an internal obligating event which is at the time an asset is acquired or if constructed when placed in service.
Federal regulations require the City's Electric Utility to provide for the future decommissioning costs of its former ownership share of the San Onofre Nuclear Generating Station (SONGS). Prior to the implementation of GASB Statement No. 83, the Electric Utility has established a provision for decommissioning costs of SONGS and the restoration of the beachfront at San Onofre, California, that is used by the plant. A separate irrevocable trust account was established for amounts funded, and these amounts are classified as restricted assets in the Statement of Net Position. The Electric Utility estimated and recorded its asset retirement obligations at the current value of outlays expected to be incurred using a site specific cost study performed by a third-party consultant. Current value is the amount that would be paid if all equipment, facilities, and services included in the estimate were acquired at the end of the current reporting period. This approach includes probability weighting of potential outcomes when this data can be obtained at a reasonable cost.
On June 7, 2013, Southern California Edison (SCE) announced the permanent retirement of the SONGS plant. The Electric Utility's minority interest *in SONGS units 2 and 3 is approximately 2.4681% of the total decommissioning costs estimated at $5,242,984 at June 30, 2022. SCE has decommissioning responsibility as well as majority interest of 75.7419%.
Other minority owners are San Diego Gas and Electric 20.0%, and the City of Riverside Public Utilities 1.79%. The Electric Utility's minority share interest in.SONGS of 2.4681% of the total decommissioning liability, net of payments already made by the Electric Utility, is $76,351 at June 30, 2022. The Electric Utility currently has assets of $90,803 including accrued interest of $472 in an irrevocable trust for the decommissioning costs. The overfunding amounts of $14,452, recorded in the deferred inflows from regulated business activities at June 30, 2022, are held in trust that will be used to reduce rates in the future or return to Electric rate customers if there are any funds remaining at the completion of decommissioning which is expected to take approximately 30 to 40 years. During fiscal year 2022, the Electric Utility paid $4,180 related to SONGS decommissioning costs.
The Electric Utility was also previously a minority owner of the San Juan Generation Station (SJ) located in San Juan, New Mexico and is responsible for the future decommission costs related to its former ownership share in Units 2 and 3. The Electric Utility's minority share interest in SJ is 3.1% of the total estimated decommissioning liability of $174,130. PNM Resources, Inc. has decommissioning responsibility as well as majority interest of 46.297%. Other minority owners are Texas-New Mexico Power Company 19.8%; Southern California Public Power Authority 12.71%; M-S-R Public Power Agency 8.7%; the City of Farmington, New Mexico 2.559%; Tri State Generation and Transmission CITY OF ANAHEIM Associates, Inc. 2.49%; the Incorporated County of Los Almos, New Mexico 2.175%; and Utah Associated Municipal Power Systems 2.169%. In fiscal year 2022, The Electric Utility's percentage liability decreased from 3.1% to 2.7% as the plant continues to operate after the Electric Utility transferred its ownership rights on December 31, 2017. As of June 30, 2022, the Electric Utility has recorded a provision for decommissioning costs for SJ of $5,398 with assets of $6,079 in the City's restricted cash account for the decommissioning costs. The overfunding amount of
$681, recorded in the deferred inflows from regulated business activities at June 30, 2022, will be returned to Electric rate customers if there are any funds remaining at the completion of the decommissioning which is expected to take approximately 20 to 40 years. The Electric Utility recorded its proportionate share of the asset retirement obligations based on its former ownership percentages of estimates made by the primary owners of the assets which measured their respective liability under standards set by the GASB.
In 2020, the Kraemer Combustion Turbine plant (CT) located in the northeast part of the City was taken out of service and will be decommissioned as part of the Electric Utility's responsibility to provide for the re purposing of the site for use for future needs of our customers.
The Electricity Utility owns 100% of the plant. The Electric Utility has recorded a provision for decommissioning costs for the CT of $6,030.
The Electric Utility had the following asset retirement obligations as of June 30, 2022:
Asset Qbligating Event Beginning Additions Pa~ments Ending SONG Ownership Agreement $ 69,461 $ 11,070 $
(4,180) $
76,351 SJ Ownership Agreement 5,398 5,398 CT Ownership 6,030 6 030
$ 80,889 $ 11,070 $
(4,180) $
87,779 Pension plan Full-time City employees are members of the State of California Public Employees' Retirement System (Cal PERS). The City's policy is to fund all annual required actuarially determined contribution (ADC); such costs to be funded are determined annually as ofJulyl by the CalPERS's actuary.
The City maintains three Pension Plans with CalPERS - Miscellaneous Plan, Police Safety Plan and Fire Safety Plan. See note 13 for further discussion.
Payments of the ADC are liquidated from the Funds where the employees' payroll expenses are charged. The Police and Fire Safety Plans are liquidated from the General Fund, and the Grant nonmajor special revenue funds. The Miscellaneous Plan is allocated among all City Funds that include the General Fund, the Housing Authority major 7(
special revenue fund, all nonmajor capital project funds, all non major special revenue funds, and all proprietary funds, in proportion to the Fund's payroll expenses.
For purposes of measuring the net pension liability and deferred outflows/ inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Postemployment benefits other than pension (OPEB)
Regular, full time employees meeting certain eligibility requirements are provided the OPEB benefits. The City is a participant in the California Employers Retiree Benefit Trust (CERBT). It is the City's policy to fund all annual required actuarially determined contributions (ADC) determined by an actuarial valuation.
Payments of the ADC are allocated among all City Funds in proportion to the Fund's full time payroll expenses in the General Fund, the Housing Authority major special revenue fund, all non major capital project funds, all non major special revenue funds and all proprietary funds.
For purposes of measuring the net OPEB liability and deferred outflows/
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan and additions to/
deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CERBT. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. See note 14 for further discussion.
On October 1, 2005, the City and the International Brotherhood of Electrical Workers {IBEW), Local 47,entered into a Letter of Understanding related to the Retiree Medical Plan. Under the Plan, the IBEW would establish a union trust (Trust) for the sole and exclusive purpose of providing post-retirement medical benefits to IBEW bargaining unit employees employed by City of Anaheim on October 1, 2005, and their eligible surviving spouses and dependents. The City agreed to transfer to the Trust for each employee in the I BEW bargaining unit the one-time post-retirement medical reserve 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 I BEW bargaining unit to the Retiree Medical Plan. It should be noted that the Trust does not constitute a CITY OF ANAHEIM City-sponsored OPEB defined benefit plan and furthermore, that the City's responsibility is limited to contributions negotiated with the IBEW, as such, there is no related retiree-medical liability included in the City's OPEB plan.
Net position restricted by enabling legislation The government-wide Statement of Net Position reports $277,443 of governmental activities restricted net position, of which $68,223 is restricted by enabling legislation.
Fund balances In the fund financial statements, governmental funds report the following classifications:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example, inventories, prepaid or long term loans and notes receivable.
Restricted fund balance includes amounts when constraints placed on the use of the resources are either imposed by external resource providers, constitutional provisions or enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes pursuant to constraints imposed by formal action of the City's highest level of the decision-making authority. The City Council is the highest level of decision-making authority that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action by the City Council to remove or revise the limitation.
Assigned fund balance includes amounts that the City intends to use for specific purposes but do not meet the criteria to be classified as restricted or committed. The City Council has by Resolution authorized the City Manager or his designee to establish, modify or rescind an assigned fund balance.
Unassigned fund balance accounts for the residual balance of the City's general fund and includes all spendable amounts not contained in other classifications. In other governmental funds, the unassigned classification reports a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
71
Generally, the City would first apply restricted resources when expenditures incurred for which both restricted and unrestricted resources are available. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is applied first, followed by assigned fund balance. Unassigned fund balance is applied last.
In all governmental funds, encumbered amounts have been restricted or assigned for specific purposes for which resources have already been allocated. On June 30, 2022, encumbrances totaled $1,228, $126 and
$7,023 in the General Fund, Housing Authority Special Revenue Fund, and other nonmajor governmental funds, respectively.
The accumulated deficit fund balances at June 30, 2022 of $11,899 in the Streets Construction, and $309 in the Transportation Improvement Projects non major Capital Project Funds, will be eliminated in future years by the receipt of reimbursements for grant expenditures.
Deficit Net Position - Internal Service Funds The accumuated deficit net position at June 30, 2022 of $13,988 in the General Benefits and Insurance, and $2,156 in the Information and Communication Services will be eliminated in future years by charges to user departments.
Deficit Net Position - Successor Agency Fiduciary Fund The accumulated deficit net position atJune 30, 2022 of $137,094 will be eliminated in future years by the receipts of Redevelopment Property Tax Trust Fund (RPTTF) revenue allocations.
Budgetary principles The City is required by its charter to adopt an annual budget on or before June 30 for the ensuing fiscal year. The General, special revenue, debt service, and capital projects governmental fund types and proprietary fund types have legally adopted budgets approved by City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level. From the effective date of the budget, the amounts stated herein as proposed expenditures/expenses become appropriations to the various City departments. Throughout the fiscal year the budget was amended to add supplemental appropriations. All amendments to the budget which change the total appropriation amount for any department require City Council approval and all increases in appropriations in operating expenditures must be accompanied by an increase in revenue sources of a likely amount to maintain a balanced budget. The City Manager has the authority to CITY OF ANAHEIM change individual budget line items within a department as long as the total department's appropriation amount is not changed.
The City utilizes an encumbrance system as a management control technique to assist in controlling expenditures. All appropriations lapse at the end of the fiscal year, except for capital projects which are carried forward until such time as the project is completed or terminated and for encumbered balances that are re-appropriated in the next fiscal year.
GASS Statement No. 34 allows that budgetary comparison statements for the General Fund and major special revenue funds be presented in the basic financial statements rather than as Required Supplementary Information. These statements must display original budget, amended budget and actual results.
Budgeted revenue amounts represent the original budget modified by City Council authorized adjustments during the year, which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. Budgets are generally prepared in conformity with GAAP using the modified accrual basis of accounting, with the exception of capital leases, or other similar instruments, and land held for resale, which are budgeted on a cash basis.
Property taxes Property taxes attach as an enforceable lien on property as of January
- l. Taxes are levied on July l and are payable in two installments due on November l and February l and become delinquent after December 10 and April 10. The County of Orange, California (County) bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied in the governmental funds to the extent that they result in current receivables collectible within 60 days after year-end. See note 10 for discussion of pledged property tax revenues.
The County is permitted by State law (Proposition 13) to levy taxes at 1%
of full market value (at time of purchase) and can increase the property tax 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 proportional to
- what it received in the 1976 and 1978 periods.
Entitlements, shared revenues and grants Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized in the fund financial statements as revenue
when the qualifying expenditures have been incurred, all eligibility requirements have been met, and reimbursement is received within the availability period.
Revenue recognition for Electric Utility, Water Utility, and Sanitation Utility Funds Revenue, net of uncollectible amount, is recorded in the period in which services are provided. Most residential and smaller commercial customers are billed bimonthly and all other customers monthly. At June 30, 2022 unbilled but earned service charges recorded in accounts receivable for the Electric Utility, Water Utility, and Sanitation Utility Funds amounted to $24,491, $1,508, and $4,302, respectively. See note 10 for discussion of pledged revenues.
Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. As such, actual results could differ from those estimates.
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS The City adopted the following new accounting pronouncements issued by the GASB during the current fiscal year ended June 30, 2022:
Statement No. 87, Leases. This statement establishes accounting and financial reporting standards focused on certain lease liabilities that currently are not reported. Comparability of financial statements among governments will be enhanced by requiring lessees and lessors to report leases under a single model. Decision-usefulness will also be enhanced by requiring notes to financial statements related to the timing, significance, and purpose of leasing arrangements. The City implemented the requirements of this Statement effective July 1, 2021.
In implementing Statement No. 84, the City re-measured the previously recorded Technology equipment capital leases. As there were no stated interest rates on these lease agreements, the City applied the incremental borrowing rate. The re-measurement causes a reduction to previously recorded net position by $500. An adjustment was also made to reduce the previously recorded net position by $5,793 from de-recognizing the lease receivable balances CITY OF ANAHEIM of certain ground leases. Lease payments of these ground leases are dependent on the leasing assets' annual residual receipts.
The following table provides a reconciliation of net position at June 30, 2021 as previously reported, to net position at June 30, 2021, as restated:
Governmental activities:
Net position as previously reported at 6/30/2021 $
684,062
-'----.....;;..;;c....;.:.c--=..::::...
Adjustment-ground lease receivable with no fixed payment terms Adjustment - remeasurement of previously recorded equipment capital lease Total adjustments Net position, as restated at 6/30/2021 (5,793)
(500)
(6,293) 677,769 Statement No. 92, Omnibus 2020. The Statement addresses a variety of practice issues that have been identified during implementation and application of certain GASB Statements including specific provisions in the effective date of Statement No. 87, Leases, and implementation Guide No 2019-3, Leases; accounting and financial reporting for pension and other postemployment benefits, reporting for intra-entity transfers of assets, fiduciary activities, measurement of liabilities (and assets, if any} related to asset retirement obligations (AROs} in a government acquisition, reporting by public entity risk pools for amounts that are recoverable for reinsurers or excess insurers, nonrecurring fair value measurements of assets or liabilities and terminology used to refer to derivative instruments. The City implemented the requirements of this statement effective July l, 2021.
Statement No. 93, Replacement of Interbank Offered Rates. The City implemented the requirements of this Statement effective July 1, 2021.
Statement No. 99, Omnibus 2022. The requirement related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.
The City had early implemented Statement No. 89, No. 97 and 98 in the prior fiscal year. Implementations of the above GASB Statements have no material effect on amounts reported in the City's financial statements at June 30, 2022.
The City is currently reviewing its accounting practices to determine the potential impacts on the financial statements for the following GASB Statements:
Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The Requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
Statement No. 94, Private-Private and Public-Public Partnerships and Availability Payment Arrangements. A Public-Private and Public-Public Partnership (PPP) is an arrangement in which a government (the transferor) contracts with an operator to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital assets (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Availability payment arrangements (APS) have also been used in practice to procure governmental services. This Statement establishes standards of accounting and financial reporting for PPPs and APAs for governments. The requirements of this Statement are effective for the fiscal year that ends June 30, 2023.
Statement No. 96, Subscription-Based Information Technology Arrangements. Subscription-Based Information Technology Arrangements (SBITAS) are arrangements that governments enter into vendor-provided information technology, software and associated tangible capital assets for subscription payments without granting governments perpetual license or title to the IT software and associated tangible capital assets. This Statement establishes accounting and financial reporting for SBITAS. The requirements for this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023.
Statement No. 99, Omnibus 2022. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning CITY OF ANAHEIM after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Statement No. 100, Accounting Changes and Error Corrections
- an amendment of GASB Statement No. 62. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Statement No. 101, Compensated Absences. This Statement amends the existing requirements to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability. In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. The requirements of this Statement are effective for fiscal years beginning December 15, 2023, and all reporting periods thereafter.
NOTE 3 - DEPOSITS AND INVESTMENTS:
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 interest earnings. The pooled interest earned, net of administrative fees, is reallocated to each fund based on their respective average daily cash balances.
The City's pooled investment fund is rated AA+f/Sl by Standard and Poor's Corporation (S&P).
The City's investment policy further limits the permitted investments in Government Code Sections 53600 et al, 16429.l and 53684 to the following: obligations of the United States government, federal agencies, and government sponsored enterprises; medium-term corporate notes; certificates of deposit; bankers' acceptances; commercial paper; LAIF; repurchase agreements; reverse repurchase agreements; supranationals; asset-backed securities, and money market mutual funds.
Deposits and investments are comprised of the following at June 30, 2022:
Governmental activities:
General Fund Housing Authority Nonmajor governmental funds Internal service funds Total governmental activities Business-type activities:
Electric Utility Water Utility Sanitation Utility Galf Courses Convention, Sports &
Entertainment Venues Total business-type activities Government-wide totals Fiduciary funds Total cash and investments Restricted Cash and Cash Cash and Cash Restricted Equivalents Investments Equivalents Investments Total 46,447 $
129,910 $
6,150 $
12,059 $
194,566 18,542 48,166 5,805 72,513 40,975 105,743 78,115 79,865 304,698 20,628 53492 6500 80,620 126,592 337,311 96570 91924 652,397 41,841 53,094 166,820 162,225 423,980 21,975 23,289 39,592 6,211 91,067 13,659 35,419 7,808 17,442 74,328 718 680 1,398 10,213 26483 9070 45766 88406 138,965 223,290 185,878 636,539 214,998 476276 319 860 277 802 1,288,936 32097 6387 38,484 i
214,998 i 476,276 i 351,957 i 284,189 i 1,327,420 Deposits and investments are comprised of the following at June 30, 2022:
Deposits 20,758 Investments and cash equivalents 1,306,662 Total deposits and investments 1,327,420 At June 30, 2022, deposits of $20,758 with a corresponding bank balance of $30,441, were maintained in various federally regulated financial institutions. The difference of $9,683 represents deposits in transit, outstanding checks, and other reconciling items. Deposits with bank balances of $1,750 are insured by the Federal Depository Insurance Corporation. For deposits with bank balances totaling $28,691, California state statutes require federally regulated financial institutions to secure a city's deposits by pledging collateral consisting of either government securities with a value ofll0% of a city's total deposits or by pledging first trust deed mortgage notes having a value ofl50% of a city's total deposits.
The collateral is required by regulation to be held by the counterparty's agent in the name of the City.
CITY OF ANAHEIM Investments The City Treasurer prepares an investment policy statement annually, which is presented to the Budget, Investment and Technology Commission for review and the City Council for approval. The approved investment policy Statement is submitted to the California Debt and Investment Advisory Committee in accordance with Government Code.
The policy provides the basis for the management of a prudent, conservative investment program. Public funds are invested for the maximum security of principal and to meet daily cash flow needs while providing a return. All investments are made in accordance with the Government Code and, in general, the City Treasurer's policy is more restrictive than Government Code.
Investments authorized by the Government Code and the City's investment policy The following table identifies the investment types that are authorized for the City by its investment policy which is more restrictive than Government Code. The table also identifies certain provisions of the City's investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the Government Code or the City's investment policy.
Authorized Investment Type U.S. Treasury obligations U.S. agency securities Banker's acceptances Commercial paper Negotiable certificates of deposit Repurchase agreements Reverse repurchase agreements Medium-term corporate notes Money market mutual funds Maximum Maturity 5Years 5Years 180 days 270 days 365 days 1 Year 90 days 5Years N/A Maximum Maximum Percentage of Investment in Portfolio*
One Issuer 100%
None 100%
40%
40%
5%
25%
5%
25%
5%
30%
None 20%
None 30%
5%
20%
10%
$75 million
$75 million (S&P/
Moody's/
Fitch)
None None None A-l;P-l;F-1 None None None A-AAA LAIF N/A per account per account None Time Certificate of Deposit 1 year 20%
5%
None Supranationals 5 Years 20%
10%
- Excluding amounts held by bond trustees that are not subject to Government Code restrictions 7':.
The City's pooled investments comply with the requirements of the investment policy. GAAP requires disclosure of certain investments in any one issuer that exceeds five percent concentration of the total investments. At June 30, 2022, the following investments represent five percent or more of the City's total pooled investments.
Fair Issuer Investment Tyge Value U.S. Treasury Treasury securities obligations 161,168 23%
Federal Home Loan U.S. agency securities Bank 118,116 17%
Federal Farm Credit U.S. agency securities Bank 110,524 16%
LAIF Local Agency Investment Fund 81,037 12%
Wells Fargo Money Market Mutual Government Institution Funds 47,254 7%
Federal National U.S. agency securities Mortgage Association 42,816 6%
Investments authorized by debt agreements Investment of debt proceeds held by bond trustees is governed by provisions of the debt agreements, rather than the general provisions of the Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Investment Authorized Investment Maximum Percentage in One Tyge Maturi:D£ Allowed Issuer U.S. Treasury obligations None None None U.S. agency securities None None None Guaranteed investment contracts None None None Collateralized investment contracts None None None Flexible repurchase agreements None None None Money market mutual funds None None None LAIF None None None CITY OF ANAHEIM At June 30, 2022, the following invetments represent five percent or more of the City's total investments controlled by bond trustees:
Fair Issuer Investment Tyge Value First American Money market mutual 263,124 42%
Treasury Obligations fund U.S. Treasury Treasury securities 164,684 26%
obligations Dreyfus Treasury Money market mutual 57,591 9%
fund Morgan Stanley Flexible Repurchase 41,755 7%
Agreement Federal Farm Credit U.S. agency securities 30,317 5%
Bank All guaranteed investment contracts have downgrade language that requires collateral should credit ratings drop below certain levels.
Investment in the State of California Local Agency Investment Fund
{LAIF):
The City is a voluntary participant in LAIF that is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investment in LAIF is carried at fair value in the accompanying financial statement based on the pro-rata share of the fair value of each participating dollar as provided by LAIF. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Regular LAIF accounts are subject to limitation of $75 million cap per account and 15 transactions a month. Withdrawal can be made same day but LAIF requires one day advanced notice for withdrawal amount
$10 million or greater.
Custodial credit risk Custodial credit risk for investments is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities owned by the City with the exception of LAIF and money market mutual funds are deposited in trust for safekeeping with a custodial bank different from the City's primary bank. Securities are not held in broker accounts. Funds held by LAIF and money market mutual funds are held in the City's name.
Custodial credit risk for investments held by bond trustees is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities held by bond 7
trustees are in the name of the bond issue in trust for safekeeping with the bond trustee, which is different from the City's primary bank.
Interest rate risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City Treasurer mitigates this risk by investing in longer-term securities only with funds that are not needed for current cash flow purposes and holding these securities to maturity. The City Treasurer uses the segmented time distribution method to identify and manage interest rate risk. In accordance with the City investment policy, the City Treasurer monitors the segmented CITY OF ANAHEIM time distribution of its investment portfolio and analysis of cash flow demand.
Investments held by bond trustees are typically long-term securities which are not adversely affected by interest rate changes. Guaranteed investment contracts for construction funds are usually limited to three years or less. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity at June 30, 2022.
City's investments (including investments held by bond trustees) to market interest rate fluctuations and the distribution of the City's investments by maturity at June 30, 2022:
Cash Equivalents & Investments Cash equivalents & investments controlled by City Treasurer:
U.S. treasury obligations U.S. agency securities Medium term notes Medium term notes Medium term notes Medium term notes Medium term notes Supra nationals Supra nationals Money market mutual funds LAIF Total cash equivalents & investments controlled by City Treasurer Cash equivalents & investment controlled by bond trustees:
U.S. treasury obligations U.S. agency securities Flexible repurchase agreements Money market mutual funds LAIF Total cash equivalents & investments controlled by bond trustees Total cash equivalents & Investments Fair Value Measurement:
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices.
However, in certain instances, there are no quoted market prices for the City's various financial instruments. In cases where quoted market Credit Rating Fair Value 12 months 13 to 24 25 to 36 37 to 60 (S&eLMoQg)(s) 6l30l2022 oc less Motbs Motbs Mo tbs N/A 161,167 $
84,317 $
9,970 $
19,498 $
47,382 AA+,Aaa 295,662 113,035 82,054 57,384 43,189 AA+,Aaa 38,571 14,974 4,938 14,162 4,497 AA,Aa2 4,999 4,999 AA-,Aa3 17,953 7,995 9,958 A+,A2 9,371 9,371 A,A2 14,129 9,618 4,511 AAA,Aaa 9,118 9,118 AA+,Aaa 11,496 11,496 Unrated 48,405 48,405 Unrated 81,037 81,037 691,908 354,762 106,920 110,033 120,193 N/A 164,684 122,909 21,242 18,861 1,672 AA+.Aaa 39,234 1,454 20,503 9,580 7,697 Unrated 57,001 57,001 Unrated 334,912 334,912 Unrated 18,923 18,923 614,754 478,198 41745 28,441 66,370
$ 1,306,662 $ 832,960 $
148,665 $
138,474 $
186,563 prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
The City groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three levels of the fair value hierarchy are as follows:
Levell of the fair value hierarchy are valued using prices quoted in active markets for those securities for identical assets or liabilities that the City has the ability to access at the measurement date.
Level 2 of the fair value hierarchy are valued using a matrix pricing technique utilizing market data including, but not limited to benchmark yields, reported trades, and broker-dealer quotes.
Matrix pricing is the process of estimating the market price of a bond based on the quoted prices of more frequently traded comparable bonds.
Level 3 inputs are unobservable inputs for the asset or liability. This valuation is accomplished using management's best estimate of fair value, with inputs into the determination of fair value that require significant management judgment or estimation. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety.
The City has the following recurring measurements as of June 30, 2022:
Investment by fair value level 6/30/2022 Debt securities:
U.S. Treasury Obligations U.S. Agency Securities Suprantional Medium Term Corporate Notes LAIF Subtotal
$ 325,851 334,896 20,614 85,023 99.960 866.344 Investments measured at cost-based:
Flexible repurchase agreements 57,001 Money Market Mutual Funds 383317 Subtotal 440,318 Total
$1,306.662 Fair Value Measu[em~t Using Quoted Prices in Active Significant Not Markets for other Required Identical Observable to be Assetl:i lngyts leveled (Level 1)
(Level 2) 325,851 334,896 20,614 85,023
$ 99,960 766,384 $ 99,960 CITY OF ANAHEIM NOTE 4 - ACCOUNTS RECEIVABLE, DUE FROM OTHER CiOVERNMENTS, DUE FROM THE SUCCESSOR ACENCY, INTERFUND RECEIVABLE AND PAYABLE BALANCES, AND CERTAIN INTERFUND TRANSACTIONS:
Accounts receivable Accounts receivable for the City's governmental and business-type activities, including the applicable allowance for uncollectible accounts at June 30, 2022, are as follows:
Governmental activities:
Accounts Receivable Less Allowance for Uncollectible Total General Fund 37,238 $
(5,977) $
31,261 Housing Authority 237 (154) 83 Nonmajor governmental funds 2.497 (8) 2.489 Internal service funds
=2-'-=,5--=-0-=-9 ------'-'(9C.L.) ----=2=
15...,.0=0 Total govern menta I activities ___
_;4..:::2-'-.4-'-8=1 ___
_,_(6--',_14..;..8_,_) -----'3=6....,,3...,.3=3 Business-type activities:
Electric Utility Water Utility Sanitation Utility Golf Courses Convention. Sports &
60,879 25,778 13,286 85 (8,628)
(1.577)
(3,158) 52,251 24,201 10,128 85 Entertainment Venues 5-'---,8_0_7 ____
(.__1_26__,_)
5,681 Total business-type activities __
--=.10.::..:5:.L.8:c.::3=5 __
__,_(=.c13::.:..4...:..8:::..:9:..cl 92,346 Total accounts receivable, net 148,316 '"'$=="'=(1=9=,6=3=7) $
128.679 Due from other governments Due from other governments for the City's governmental activities at June 30, 2022, are as follows:
Taxes Grants Other Governmental activities:
General Fund 22,272 $
305 $
3,166 $
Housing Authority 934 Nonmajor governmental funds ---=5 24,336 ----=2=3=0 Total due from other Total 25,743 934 24,571 governments 22,277 $
25,575 $
3.396 $
51,248 7E
Revenues are reported net of estimated uncollectible amounts. Total estimated uncollectible amounts related to revenues of the current period are as follows:
General fund Electric Utility Water Utility Sanitation Utility Convention, Sports & Entertainment Venues Total Due from the Successor Agency 220 782 271 1,314 31 2,618 At June 30, 2022, the amount due from the Successor Agency is $5,000.
Due to the extended period of time over which the receivables for the HUD loan agreements are to be collected, the City has recorded expenditures at the time the loans were provided and deferred inflows of resources equal to the amount due in the non major special revenues funds ($3,295) and the nonmajor capital project fund ($1,705).
On Aprill, 2003, the City and the former Anaheim Redevelopment Agency entered into a Cooperation Agreement whereby the City assisted the Redevelopment Agency with the development of Westgate utilizing $10,000 of funds from the HUD Section 108 loan program. The amount is due to the City by annual installment through June 2024. At June 30, 2022, the amount due is $1,705.
On June l, 2010, the City and the former Anaheim Redevelopment Agency entered into a Cooperation Agreement whereby the City assisted the Redevelopment Agency with the rehabilitation of the historic Packing House site utilizing $7,000 of funds from the HUD Section 108 $15,000 loan proceeds. The amount is due to the City by annual installment through June 2031. At June 30, 2022, the amount due is $3,295.
lnterfund receivable and payable balances Net internal balances between governmental activities and business-type activities of $25,386 are included in the government-wide financial statements at June 30, 2022.
CITY OF ANAHEIM lnterfund receivables and payables that are included in the fund financial statements at June 30, 2022, are as follows:
lnterfund Payable:
Governmental Funds:
General Fund Nonmajor governmental funds Enterprise Funds:
Water Utility Convention, Sports &
Entertainment Venues Internal Service Funds lnterfund Receivable:
Nonmojor Internal General Housing governmental service Fund Authority funds funds 7,425 33,031 $
1,133 $
11,409 7,301 Electric Utility Total 310
$ 40,766 12,542 1,032 1,032 7,301 39 39 Total
=$==7=,30=1 $
8,558 $
11.409 $
33,031 =$==1,=38=1
$ 61,680 All interfund balances at June 30, 2022 are generally short-term loans to relieve temporary cash deficits in various funds, except the following interfund balances that are expected to be repaid in more than one year:
General Fund In 2020, $33 million interfund loan was made between the General Fund and the General Benefits and Insurance Fund, an Internal Service Fund of the City, to provide cash relief due to general tax revenue shortfall resulting from the COVID-19 pandemic and the California Stay-At-Home order. The fund will be repaid over ten years at the City of Anaheim Treasury Investment Portfolio earning rate.
Electric Utility In 2015, the Public Utility Customer Service Information System Project was completed and placed in service. The Electric Utility paid for the total cost of the project. The Water Utility portion of the total cost is $3,484, payable in annual amounts of not less than $344 beginning July 2016 until July 2024. The outstanding balance at June 30, 2022 is $1,032.
The Public Utility, Public Works and Community Services Departments entered in various Memorandum of Understanding (MOU) whereby the Public Utility agreed to provide low-interest financial assistance to fund project costs in implementing resource efficiency measures in various City facilities, City Parks and City libraries. The funds will be repaid over five years.
- l. In October 2016, $309 was provided to fund the costs of the security light and photocell replacement resource efficiency upgrading projects in various City parks. Interest rate is 0.65%
per annum. Monthly principal and interest payment is $5 payable from unrestricted general fund resources. At June 30, 2022, the balance is $53.
- 2. In November 2016, $231 was provided to fund the costs of the general office lighting and parking garage structure resource efficiency upgrading projects. Interest rate is 0.65% per annum.
Monthly principal and interest payment is $4 payable from unrestricted resources of the Municipal Facility Maintenance internal service fund. At June 30, 2022, the balance is $39.
- 3. In February 2019, $295 was provided for the security lighting upgrade projects in various City parks. The interest rate is 2.11%
per annum, principal and interest payment is $5 payable from unrestricted general fund resources. At June 30, 2022, the balance is $110.
- 4. In August 2019, $296 was provided for the replacing, upgrading, retrofitting, and construction project materials, contract labor, and design services in various City-owned libraries. Interest rate is 2.35% per annum. Monthly principal and interest payment is
$5 payable from unrestricted general fund resources. At June 30, 2022, the balance is $147.
CITY OF ANAHEIM Housing Authority In February 2018, the City and the Anaheim Housing Authority (Authority) entered into a Cooperation Agreement whereby the City and Housing Authority exchanged real property for the purpose of developing affordable housing. The market value of the Housing Authority property exceeded that of the City property by $2,150; hence, the City agreed to provide $2,150 in future Park Fee Credits to the Housing Authority for the benefit of affordable housing development. At June 30, 2022, the park fee credit due to the Housing Authority is $1,133 from the Community Services Facilities non major special revenue fund.
On July 30, 2019, the Authority purchased 1213 & 1227 South Claudina Street ("Properties") from B&AINV l & 2 LLC at a purchase price of $7,250. The Authority wishes to exchange the Properties for property owned by the City (yet to be determined) of equal value and suitable for low and moderate income housing purposes.
Concurrently, the City entered into a Purchase & Sale Agreement dated July 30, 2019 with ATN Asset Holding Co. LLC (ATN) for the sale of Properties for $7,405 secured by a note and deed of trust for the entire amount. To facilitate the sale, the Properties were transferred from the Authority to the City. The City and the Authority entered into an Agreement and Escrow Instructions for Delayed Exchange of Real Property for a replacement property, yet to be determined. lnterfund due from and to in the amount of
$7,425 were reported in the Housing Authority and General Fund respectively with the General Fund reported a note receivable from ATN in the amount of $7,405.
8(
CITY OF ANAHEIM Certain interfund transactions The following interfund transfers are reflected in the fund financial statements at June 30, 2022:
Nonmajor Internal General Housing governmental Service Fund Authori~
funds Fuods Transfer Out:
General Fund 101,666 $
5,740 Housing Authority 1,260 487 Nonmajor governmental 3,720 $
2,557 130 funds Electric Utility 20,281 Water Utility 1,378 12 Sanitation Utility 2,747 42 Internal Service Funds Total 29,386 $
2,557 $
102,337 $
5,740 The net transfers between governmental funds and proprietary funds is $6,984 which are primarily comprised of operational subsidies from enterprise funds to the General Fund and are offset by debt service subsidies to the ARTIC Management and Convention, Sports &
Entertainment Venues Funds.
The City made the following major transfers during fiscal year ended June 30, 2022:
Transfer of $79,132 represents Lease Payment Measurement Revenues (LPMR) from the General Fund to the Anaheim Resort Improvements Debt Service Fund, which is held by the Trustee, see discussion on note 10 of the notes to the financial statements on page 88 of this report.
Transfer of $5,706 from the General Fund to the Convention, Sports & Entertainment Venues Enterprise Fund for debt service.
Transfer of $7,977 from the General Fund to the Municipal Facilities nonmajor Debt Service Fund for debt services. This amount includes $7,433 capitalized interest account balance from the 2021 Working Capital bonds.
Transfer of $14,053 from the General Fund to the Other Capital Improvements nonmajor Capital Project Fund for Neighborhood projects ($10,000), Fire Station 4 improvements ($3,000), Public Safety 800 Megahertz (MHz) communication debt service ($803);
and various neighborhood capital improvement projects ($250).
Transfer n:
EnterRrise Funds Convention, Sports &
Electric Water Sanitation Entertainment ARTIC Utilit)l Uti!it)l Utilib£ Veoues Maoagem~nt Total 600 5,706 $
51 $
113,763 1,747 1,251 128 4,000 11,786 20,281 156 1,546 2,789 15 13 28 1,422 $
613 $
128 $
5,Z06 $
4,051 $
151,940 Transferof$5,740fromtheGeneral Fund to the Municipal Facilities Maintenance, Internal Service Funds for deferred maintenance projects.
Transfer of $600 from the General Fund to the Water Utility Enterprise Fund per the result of Measure N in the November 2014 election.
Transfer of $1,260 from the Housing Authority to the General Fund for the purchase of the Matrix/Midway right-of-way at fair market value, to complete the Miraflores multifamily project.
Transfer of $2,451 of the federal HOME funds from the Grant nonmajor Special Revenue Fund to the Housing Authority, per the Cooperation Agreement between the City and the Housing Authority, to provide resources for a HOME Loan Note to the developer for the Miraflores Apartment multifamily project.
Transfer of $4,000 from the Gas Tax nonmajor Special Revenue Fund to the ARTIC Management Enterprise Fund for debt services on the ARTIC land acquisition loan as discussed on note 10 of the notes to the financial statements on page 93 of this report.
Transfer of $1,251 from the Mello-Roos Projects non major Capital Projects Fund to Electric Utility Enterprise Fund for the construction of various electric infrastructure in the Platinum Triangle ARTIC project.
Transfers of $15,239 from the Electric Utility Enterprise Fund and
$2,747 from the Sanitation Utility Enterprise Fund to the General
~------------------------------------------------~------
Fund. As defined by City Charter, the transfer is equal to the maximum of 4% of total operating revenues of the current fiscal year.
Transfer of $5,042 from the Electric Utility Enterprise Fund and
$1,378 from the Water Utility Enterprise Fund to the General Fund.
The amount represents the City Council approved transfer ofl.5%
retail electric revenue and net water revenue of the prior fiscal year.
The net transfer of $13,056 from the business-type activities to governmental activities in the government-wide Statement of Activities consisted of a $360 transfer of capital assets from the Sanitation Utility business-type activities to the governmental activities and the net transfers described above.
Except for the transfers detailed above, there were no other significant transfers during the fiscal year that were either non-routine in nature or inconsistent with the activities of the Fund making the transfer.
NOTE 5-LEASE RECEIVABLES The City leases out its office space, buildings and land for various operational purposes to third parties. The City's lease receivables at June 30, 2022 were valued at $12,918 for Governmental Activities and $10,254 for Business-type Activities. The deferred inflow of resources related to these lease receivables of $12,706 and $10,166, respectively, will be recognized as revenues over the term of the leases.
The City's incremental borrowing rate of 1.75% (July 2021 rate) was applied on these leases since there were no specific interest rates for each of the Lease Agreements.
Lease receivables of the governmental activities consist the following:
Office space and building totaling $660, annual principal and interest lease payment ranges from $6 to $133; the remaining lease terms range from April 18, 2023 to August 20, 2037; Land leases totaling $12,258, annual principal and interest lease payment ranges from $129 to $1,213, the remaining lease terms range from December 31, 2022 to March 11, 2076.
Lease receivables of the Business-type activities consist the following:
Land leases totaling $10,254; annual principal and interest lease payment ranges from $134 to $1,947, the remaining lease terms range from January l, 2023 to March 28, 2039.
CITY OF ANAHEIM The total amount of inflows of resources relating to leases recognized in the current fiscal year are as follows:
Governmental Business-type Activities Activities Total Lease revenue 1,384 $
1,857 $
3,241 Interest revenue 195 $
177 $
372 The Fiduciary Fund - Successor Agency leases out its land and subleases a portion of the leased land to third parties. The Successor Agency's lease receivables at June 30, 2022 were valued at $7,681. The deferred inflow of resources related to these lease receivables of $7,523 will be recognized as revenues over the term of the leases. The Successor Agency also recorded an allowance for uncollected of $48 and included in the Lease receivable balance on the Statement of Fiduciary Net Position.
Land leases totaling $7,633 net of an allowance for uncollectible of $48; annual principal and interest lease payment rangers from
$78 to $500; at the Successor Agency's incremental borrowing rate of 1.75%; the remaining lease terms range from June 30, 2036 to March 5, 2039.
The Successor Agency's total amount of inflows of resources relating to leases recognized in the current fiscal year are as follows:
Lease revenue Interest revenue Fiduciary Funds Activities 375 89 NOTE 6 - ECONOMIC ASSISTANCE AGREEMENTS - TAX ABATEMENTS (as defined by CASB Statement No. 77)
As of June 30, 2022, the City has three active Economic Assistance Agreements (Agreements) to developers. These Agreements related to constructions of Hotels and retail spaces (Projects) within the City of Anaheim. There has been analysis of the feasibility gap between the costs of developing and operating the Projects and the costs that the Projects can finance and viably support. The feasibility gap for the Projects is the economic assistance that the City has committed to partially provide and is capped at $244,726, per the Agreements. As of June 30, 2022, the City has made payments totaling $8,566.
The economic assistance that the City provides under these three Agreements are in the form of tax abatements - rebates of transient occupancy taxes (TOT) and sales tax that these Projects generated and the City receives. These tax abatements are reported as reductions to tax revenues in the General Fund. During fiscal year 2022, the City paid
$6,095 for TOT abatements and $291 for sales tax abatement.
In addition, the City entered into several economic assistance agreements to provide assistance to partially fill the feasibility gap of the four-diamond hotel developments within the City. Provision of economic assistance is contingent upon completion of construction of the hotels, the commencement of and continued operations as a four-diamond quality hotel, and the generation of and payment to the City of TOT. The contemplated hotels have yet to be built, and therefore cannot operate, CITY OF ANAHEIM 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. All Agreements have terms of twenty years and are capped with maximum amount of economic assistance payments.
CITY OF ANAHEIM NOTE 7 - CAPITAL ASSETS Capital asset activities for the year ended June 30, 2022, were as follows:
Beginning Transfer In Ending Balance, as restated Additions (Out)
Deletions Balance Governmental activities:
Nondepreciable assets:
Land 693,257 967 694,224 Construction in progress 41840 29704 (27,731)
(139) 43 674 Total 735,0~7 30671 (27 731)
(139) 737 898 Depreciable assets:
Buildings, structures and improvements 428,518 3,671 7,799 (263) 439,725 Machinery and equipment 142,200 5,364 183 (2,478) 145,269 Infrastructure 954,740 2,019 20,109 (40) 976,828 Right-to-use leased Land 2,926 2,926 Right-to-use leased Buildings 53 53 Right-to-use leased Equipment 1849 834 2 683 Total 1530 286 11888 28091 (2 781) 1567 484 Total assets 2 265 383 42 559 360 (2,920) 2 305 382 Less accumulated depreciation for:
Buildings, structures and improvements (204,813)
(16,670) 263 (221,220)
Machinery and equipment (95,915)
(7,416) 2,444 (100,887)
Infrastructure (499,879)
(23,464) 40 (523,303)
Right-to-use leased Land (72)
(72)
Right-to-use leased Buildings (38)
(38)
Right-to-use leased Equipment (853)
(853)
Total accumulated depreciation (800 607)
(48 513) 2 747 (846,373)
Total governmental activities capital assets, net 1,464,776 (5,954}
360 (173}
1,459,009 Business-type activities:
Nondepreciable assets:
Land 93,331 93,331 Construction in progress 198 665 118,315 (148,232) $
(1153) 167 595 Total 291996 118 315 (148 232)
(1,153) 260 926 Depreciable assets:
Buildings, structures and improvements 1,034,248 2,291 1,907 (11) 1,038,435 Utility plant 2,014,573 3,493 145,890 (7,108) 2,156,848 Machinery and equipment 52,574 773 75 (425) 52,997 Right to use leased land 3,200 3,200 Right to use leased equipment 266 266 Total 3104861 6 557 147 872 (7,544}
3 251 746 Total assets 3 396 857 124 872 (360}
(8697}
3 512 672 Less accumulated depreciation for:
Buildings, structures and improvements (359,188)
(21,071) 11 (380,248)
Utility plant (831,728)
(61,427) 7,108 (886,047)
Machinery and equipment (30,736)
(3,877) 423 (34,190)
Right-to-use leased Land (260)
(260)
Right to use leased equipment
(;!.19)
(68}
L!.8Zl Total accumulated depreciation (1,221 ZZll (86,Z03l Z,542 (1,300,932}
Total business-type activities capital assets, net 2,175,086 38,169 (360}
(1,155}
2,211,740
Depreciation expense was charged to functions/programs of the City during fiscal year 2022 as follows:
Governmental activities:
General government Police Fire Housing & Community Development Planning.
Public Works Community Services Convention, Sports and Entertainment Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense - governmental activities Business-type activities:
Electric Utility Water Utility Sanitation Utility Golf Courses Convention, Sports & Entertainment Venues ARTIC Management Total depreciation expense - business-type activities Successor Agency 83 1,915 2,054 2,125 45 24,533 5,689 7,035 5,034 48,513 48,247 13,440 2,920 682 19,043 2,371 86,703 Right to use leased assets for the Successor Agency for the fiscal year ended June 30, 2022 were as follows:
Right to use leased land Less accumulated depreciation Right to use leased land, net NOTE 8 - SELF INSURANCE:
Beginning Balance as restated 19,613 19,613 Ending Addition Deletion Balance 19,613 (729)
(729)
(729) $
18,884 The Insurance Fund (a function of the General Benefits and Insurance Fund), an internal service fund, is used to account for self-funded CITY OF ANAHEIM workers' COIT)pensation related benefits, self-funded general liability claims, commercial insurance purchases, and alternative risk financing vehicles. Revenues of the Insurance Fund are derived from cost-allocation charges to City departments using estimates of anticipated risk-transfer costs, new losses, payments on existing claims, and reserve development on known claims. In addition, the Insurance Fund receives interest income from reserves.
At June 30, 2022, the City was funded at an actuarially acceptable level for self-funded retention for workers' compensation and general liability claim exposures (with retention levels of $2,000 per occurrence for workers' compensation claims and $1,000 per occurrence for general liability claims). Above these retained levels, the City's potential liability is covered through various commercial insurance and intergovernmental risk pooling programs (collectively, "Insurance"). Settled claims have not exceeded total Insurance in any of the past three years, nor does management believe that there are any pending claims that will exceed total Insurance coverage.
The unpaid claims liability included in the Insurance Fund is based on the results of actuarial studies.and includes amounts for claims incurred-but-not-reported, known-claim development, and allocated loss adjustment expenses. Claims liabilities are calculated using a discount rate of 2.25% and consider the effects of inflation, multi-year loss development trends, and other economic and social factors. It is the practice of the City to obtain full annual actuarial studies annually for its retained levels for general liability and workers' compensation exposures. "Premiums" are charged by the Insurance Fund using allocation methods that include actual costs, trends in claims experience and applicable exposure bases.
Changes in claims liability of the General Benefits and Insurance Fund related to the governmental funds that are reported in the governmental activities in the government-wide Statement of Net Position in fiscal years 2022 and 2021 were as follows:
2022 2021 Claims liability at beginning of year 59,119 $
58,548 Current year claims and changes in estimates 13,700 16,459 Claims payments (14,300)
(15,888)
Claims liability at end of year 58,519 $
59,119 Above the retained limit of $2,000 per occurrence for workers' compensation losses, the City purchases excess coverage, utilizing both commercial insurance and an intergovernmental risk pooling program (PRISM), to statutory limits.
Above the retained limit of $1,000 per occurrence for liability losses the City maintains excess coverage for all City operations to $55,000 1
per occurrence, excluding helicopter operations for which the City purchases
$50,000, per occurrence, of commercial aviation liability insurance (on a first-dollar basis). The first layer of excess liability loss coverage is procured throug~ the Authority for California Cities Excess Liability (ACCEL), a joint powers insurance authority, formed in 1986, pooling catastrophic general, automobile, personal injury, and public officials errors and omissions liability losses among twelve California cities, through both risk-sharing and commercial insurance joint-purchase arrangements. The City, therefore, continues to maintain some limited excess liability risk sharing exposure, above $1,000 per occurrence, directly with ACCEL. This pooled coverage has exposure from the run-out periods from prior years in the ACCEL retained layer of $4,000 or $9,000 in excess of $1,000. Each ACCEL member's share of pooled losses is based on a retrospectively-rated risk-sharing formula which includes, but is not limited to, exposure and loss experience factors.
In order to provide funds to pay claims, ACCEL collects an annual deposit from each member. The deposits are credited with investment income at the rate earned on ACCEL's investments. As of June 30, 2022, ACCEL's cash and investments totaled $59,970. The City has no specific equity interest in ACCEL. Deposits provided to ACCEL by the City are expensed when paid by the General Benefits and Insurance Fund.
ACCEL is responsible for deciding the risks it will underwrite, the monitoring, and handling of large claims, and arranging excess CITY OF ANAHEIM risk-financing programs. ACCEL does not have any debt outstanding.
For a copy of ACCEL's separate financial statements, contact the Finance Director of the City.
NOTE 9 - REVOLVINC LINE OF CREDIT On January 1, 2021, the Public Utility Department renewed the Revolving Credit Agreement (Agreement) with Wells Fargo Bank, National Association for a maximum note amount not to exceed $100 000 of which $86,000 is made available for the Electric Utility and $14,000 for the Water Utility. The note was renewed with the same three year term with a maturity date of December 31, 2023, at variable interest rates based on the LIBOR Daily Index Rate and a spread. The annual commitment fee is 0.30% of the total note amount of $100,000. The current U.S. Dollar LIBOR publication is scheduled to end by June 30, 2023. The Public Utility will transition from using the LIBOR Rate to the Secure Overnight Financial Rate (SOFR) at the earlier of June 30, 2023 or when Wells Fargo Bank makes modifications to the Agreement to replace reference to existing LI BOR rates to SOFR.
The purpose of the Agreement is to provide temporary financing for the costs of acquisition and construction to capital improvements of the Utility's electric and water systems. There was no draw from the Agreement during fiscal year 2022.
BE
CITY OF ANAHEIM NOTE 10 - LONG-TERM DEBTS:
The following is a summary of changes in long-term debts reported in the government-wide financial statements for the year ended June 30, 2022:
Dune Beginning Additions/
Reductions/
Ending Within One Balance Proceeds Refunded Pa)lments Balance Year Governmental activities:
Bonds payable:
City lease revenue 428,243 $
23,546 $
(21,195) $
(15,586) $
415,008 $
15,796 Accretion 225,874 17,468 (18,063) 225,279 19,217 Unamortized bond discount/premium, net 30 040
{4,160}
25 880 Total 684157 41014
{21,195}
{37,809}
666167 35 013 Notes and loans payable from direct borrowing:
City 16,403 1,500 (2,982) 14,921 3,144 Internal Service Funds 63 6 500
{lll 6,552 1,251 Total 16466 8000
{2,993}
21473 4395 Leases (note 12):
City 2,979 (64) 2,915 39 Internal Service Funds 1849 834
{1,223}
1460 886 Total 4828 834
{1,287}
4375 925 Governmental activities total 705 451 49848
{21,195}
{42,089}
692 015 40333 Business-type activities:
Bonds payable:
Electric Utility 645,425 $
310,640 $
(195,545) $
(33,065) $
727,455 $
36,295 Water Utility 186,750 155,815 (103,060)
(5,375) 234,130 4,745 Sanitation 42,225 (1,295) 40,930 1,355 Convention, Sports & Entertainment Venues 210,166 226,704 (204,063)
(6,103) 226,704 4,047 Unamortized bond discount/premium, net 88442 34614
{47,753}
75 303 Total 1173 008 727 773
{502,668}
{93,591}
1,304,522 46442 Notes and loans payable from direct borrowing:
Electric Utility 180 (31) 149 32 Sanitation Utility 117 (20) 97 21 Golf Courses 53 117 (28) 142 35 Convention, Sports and Entertainment Venues 16 (2) 14 3
ARTIC Management 6000
{4,000}
2 000 2000 Total 6366 117
{4,081}
2402 2091 Leases (note 12):
Electric Utility 3,200 (278) 2,922 264 Golf Courses 137
{62}
75 64 Total 3 337
{340}
2997 328 Interest payable ARTIC Management 3 669 78 3 747 Total 3 669 78 3 747 Business-type activities total 1,186,380 727968
{502,668}
{98,012}
1313 668 48861 Government-wide total 1,891,831 $
777,816 $
{523,863} $
{140,101} $
2,005,683 $
89,194
Bond ratings for the City's revenue bonds are as follows:
Standard &
Poor's Fitch Ratings Moody's 1997 A Lease Revenue Bonds AA A-A2 1997 C Lease Revenue Bonds AA Unrated Al 2019 Senior Lease Revenue Bonds BBB A~
Al 2021 A Lease Revenue Bonds AA Unrated A2 2021 Working Capital Bonds AA Unrated Al Electric Revenue Bonds AA-AA-Aa3 Water Revenue Bonds AA-AA+
Unrated Sewer Revenue Bonds AA+
Unrated Unrated GOVERNMENTAL ACTIVITIES:
BONDS PAYABLE At June 30, 2022, bonds payable consisted of the followings:
Range of Interest Authorized Rates Date Final at Issue and Outstanding 1997 Anaheim Lease Revenue Bonds Accretion 2019 A Anaheim Senior Lease Revenue Refunding Bonds 2021 Lease Revenue Refunding Bonds 2021A Lease Revenue Bonds (Working Capital Issued Maturity 2/1/1997 3/1/2037 4/30/2019 9/1/2036 12/14/2021 7/1/2046 Date Issued 6/30/2022 4.5%-6.1% $
251,182 $
91,977 225,279 5.0%- 5.0%
169,065 160,730 0.9%- 3.3%
23,546 23,546 Financing) 6/22/2021 7/1/2051 0.6%- 3.1%
138,755 ___
1_38_,_75_5 Total 640 287 Unamortized bond premium/discounts, net 25.880 Total governmental activities bonds 582,549 =$======6=662.=16=7 The bond indentures of the respective bond issue contain provisions of l) in the event of default, the entire outstanding principal shall become due and payable; 2) requirement of maintaining fund reserve of maximum annual debt service or a Bond Debt Reserve Insurance Policy equal to the debt service reserve requirement.
CITY OF ANAHEIM Bonds Payable - City Lease payment measurement revenues (LPMR)
In February 1997, the Anaheim Public Financing Authority sold $510,427 of lease revenue bonds to finance the construction of public improvements in The Anaheim Resort. In June 2007, the Authority sold $256,320 of lease revenue bonds to defease $248,335 of the 1997 lease revenue bonds. In April 2019, the Authority sold $175,565 of Senior Lease Revenue Refunding Bonds to defease the $209,065 outstanding balance of the 2007 Al and A2 bonds. On January 13, 2020, the Authority transferred $58,600 from the LPMR Special Reserve Fund to the escrow bank to defease a portion of the outstanding lease revenue Capital Appreciation Bonds 1997 series C with the maturity value at defeasance of $84,270 maturing on September l, 2035, September l, 2036 and March l, 2037.
The bonds are special obligations of the Authority payable solely from lease payments to be made by the City to the Authority for the use and occupancy of the leased premises. Debt service requirements to maturity for these lease revenue bonds are paid from lease payment measurement revenues (LPMR) measured by portions of the three largest revenue sources (TOT, sales tax, and property tax). Lease payments made by the City under the lease agreement are equal to LPMR, which in general means the sum of an amount equal to the following will be transferred in the a debt service fund:
l) 3% of the 15% TOT rate (i.e. 20% of the total TOT revenue) for all hotel properties in the City, excluding certain Disney properties constructed prior to 2009;
- 2) 100% of the TOT revenues from certain Disney properties constructed prior to 2009 over the 1995 base (adjusted annually by the change in CPI) with a minimum of 2% increase;
- 3) 100% of sales tax revenues from certain Disney properties over the 1995 base (adjusted annually by the change in CPI) with a minimum 2%
increase;
- 4) 100% property tax revenues from certain Disney properties in excess of the 1995 base property tax amount, adjusted annually by 2%.
The City is not required to pay any additional sums should the LPMR fall short of the amount required to pay debt service on the bonds. The Walt Disney Company provided a guarantee to the bond insurer to enable the issuer to obtain municipal bond insurance.
LPMR began on January l, 2001, with the first payment made to the trustee on July 7, 2001, for the LPMR generated during the period January through June 2001. Subsequent to that date, LPMR is collected and BE
remitted to the trustee monthly. During the fiscal year ended June 30, 2022, $65,430 was remitted to the trustee.
Debt service requirements to maturity for the 1997 Anaheim Lease Revenue Bonds and the 2019 Anaheim Lease Revenue Refunding Bonds to be paid by the Anaheim Resort Improvements Debt Service Fund from future LPMR are as follows:
Fiscal Year Ending 6L30 ecirn;;ipgl lotecest Iotal 2023 15,693 $
28,536 $
44,229 2024 16,361 29,161 45,522 2025 17,089 29,759 46,848 2026 17,800 30,376 48,176 2027 18,404 31,045 49,448 2028-2032 79,498 167,726 247,224 2033-2037 87,862 134172 222,034 Total 252,707 450,775 703,481 Unamortized bond premiums 25,880 25,880 Total bonds 278,587 $
450,775 $
729,361 Included in interest is $225,279 related to accretion on capital appreciation bonds.
Lease revenue bonds - City The City purchased a Surety Policy and a Reserve Policy in satisfaction of the bond reserve requirements. Debt service requirements to maturity for the City's lease revenue bonds to be paid from unrestricted revenues of the Municipal Facilities Debt Service Fund are as follows:
Fiscal Year Ending 6/30 Principal Interest Total 2023 103 $
696 $
798 2024 729 661 1,390 2025 737 652 1,389 2026 748 641 1,389 2027 760 628 1,388 2028-2032 4,053 2,878 6,931 2033-2037 4,631 2,282 6,913 2038-2042 5,418 1,485 6,903 2043-2048 6 367 533 __
_.,,6=9=0=0 Total Bonds 23,546 $
10,456 ~$=====3~4~,0,';;0~2 Lease Revenue Bonds - Working Capital Financing On June 10, 2021, the Anaheim Public Financing Authority sold $138,755 of Lease Revenue Bonds (Working Capital Financing), Series 2021 A, at par. Proceeds of the bonds provide financing for projected cash flow deficits attributable to significant declines in General Fund revenues for fiscal year 2020-2021 through 2023-2024 impacted by the COVID-19 pandemic. The bonds will be repaid from unrestricted general fund revenues.
CITY OF ANAHEIM The City also purchased a Surety Policy and a Reserve Policy in satisfaction of the bond reserve requirements. The Reserve requirement, as of the date of any calculation, an amount equal to the least of l) 10% of the proceeds of the issue, 2) the maximum Annual Debt Service on the o,utstanding bonds, and 3) 125% of the average Annual Debt Service on the Outstanding Bonds.
Debt service requirements to maturity for the 2021 Anaheim Lease Revenue Bonds to be paid from the capitalized interest funds for the first three years and from unrestricted general fund revenues thereafter are as follows:
Fiscal Year Ending 6/30 eci cipal lotecest Iotgl 2023 3,656 $
3,656 2024 3,656 3,656 2025 3,650 3,644 7,294 2026 3,675 3,615 7,290 2027 3,710 3,576 7,286 2028-2032 19,420 16,958 36,378 2033-2037 21,590 14,701 36,291 2038-2042 24,680 11,545 36,225 2043-2047 28,640 7,500 36,140 2048-2052 33 390 2669 36059 Total 138,755 $
71,520 $
210,275 NOTES AND LOANS PAYABLE Notes and loan payable from direct borrowing contain provision that in the event of default, the entire outstanding principal amount are due and payable. Additionally, the City had pledged certain real properties, park land, and a portion of its annual Community Development Block Grants entitlement as securities interest for the HUD Section 108 guaranteed loans. At June 30, 2022 notes and loans payable are as follows:
Notes and Loans Payable - City HUD Section 108 guaranteed loans payable In May 2003, the City entered into an agreement with HUD, making available $10,000 to provide financial assistance related to the development of Westgate on a former landfill site located at the northeast corner of Beach Boulevard and Lincoln Avenue. The loan is payable from the receipts of the Successor Agency receivable. The outstanding balance at June 30, 2022 was $1,705. The loan bears interest ranging from 1.74% to 5.97% and is payable over 20 years beginning on February l, 2005, until August l, 2023. Loan debt service requirements to maturity are as follows:
Fiscal Year Ending 6/30 2023 2024 Total notes and loans Principal Interest Total 975 $
72 $
1,047
~---7_3_0 22 752 1,705 $
94 $
1.799 In March 2010, the City entered into an agreement with HUD, making available $15,000 to fund the acquisitions of the Orange County Family Justice Center and Miraloma Park site, construction of the Thornton Brady storm drain and the rehabilitation of the historic Packing House site. The loan is payable from the Community Development Block Grant yearly entitlement and from the receipts of the Successor Agency receivable. The outstanding balance of the loan at June 30, 2022, was
$7,355. The loan bears interest ranging from 1.74% to 3.97% and is payable over 20 years beginning on February l, 2011 through August l, 2030. Loan debt service requirements to maturity are as follows:
Fiscal Year Ending 6/30 e[incipal lote[est Total 2023 780 $
292 $
1,072 2024 805 261 1,066 2025 835 229 1,064 2026 865 194 1,059 2027 900 157 1,057 2028-2031 3,170 235 3,405 Total notes and loans 7,355 $
1,368 $
8,723 800 Megahertz Communication Equipment On November 30, 2015, the City entered into a Master Equipment Lease/
Purchase Agreement (Agreement) with Banc of America Public Capital Corp., to finance the acquisitions and replacement of the City portion of the 800 Megahertz (MHz) Countywide Coordinated Communications System (CCCS). The CCCS project includes a plan for replacement of three main components: Backbone Equipment, Subscriber Equipment, and Dispatch Consoles.
On November 30, 2015, the Agreement provided $1,100 financing for the acquisition of a portion of the mobile radio equipment payable over 10 years and bears interest of 1.98% per annum, Principal and interest payments of $61 are due semi-annually beginning on May 30, 2016, until November 30, 2025. The outstanding balance at June 30, 2022 was $410.
On November 30, 2016, the Agreement provided $6,840 financing for the acquisition of the remaining radio equipment payable over 10 years and bears interest of 1.87% per annum. Principal and interest of $377 are due semi-annually beginning on May 30, 2017, until November 30, 2026. Amount of this financing allocated to the governmental activities totaled $6,235. The outstanding balance at June 30, 2022 was 2,977.
CITY OF ANAHEIM Loan debt service requirements to maturity are as follows:
Fiscal Year Ending 6/30 Princieal Interest Total 2023 755 $
60 $
815 2024 769 46 815 2025 783 31 814 2026 737 17 754 2027 343 3
346 Total notes and loans 3,387 $
157 $
3,544 Ambulance Loan Payable On January 15, 2020, the Agreement with Banc of America Public Capital Corp. provided $799 financing for the acquisition of five (5) ambulances, payable over 7years and bearing interest at 1.69% per annum. Principal and interest payment of $121 are due annually beginning on January 15, 2022 until January 15, 2028.
On March 4, 2022, the Agreement provided $1,500 financing for the acquisition of additional eight (8) ambulances, payable over 7 years and bears interest at 2.48% per annum. Principal and interest payment of
$117 are due semi-annually beginning on September 7, 2022 until March 4, 2029.
Debt services of the ambulance loans will be funded from the unrestricted revenue sources of the Fire & Rescue Department's in-house Emergency Medical Transportation Program revenues. The outstanding balance of the loans atJune30, 2022 was $2,190. Loan debt service requirement to maturity are as follows:
Fiscal Year Ending 6/30 Principal Interest Total 2023 309 $
48 $
357 2024 316 41 357 2025 323 34 357 2026 330 27 357 2027 337 19 357 2028-2031 575 16 591 Total notes and loans 2,190 $
185 $
2,375 Technology Equipment Loan On March 4, 2022, the Agreement with Banc of America provided $6,500 financing for the acquisition of various Technology Equipment. The loan has a term of 5 years and bears interest at 2.36% per annum. Principal and interest of $693 are due semi-annually beginning on September 4, 2022 until March 4, 2027. Debt services of the loan will be funded from the unrestricted revenue sources of the Information and Communication 9(
Services internal service funds. The outstanding balance of the loan at June 30, 2022 was $6,500. Total debt services to maturity are as follows:
IT Egui12ment-Purchase Fiscal Year Ending 6[30 Princii;1gl Interest Totgl 2023 1,240 $
146 $
1,386 2024 1,269 117 1,386 2025 1,299 87 1,386 2026 1,330 56 1,386 2027-2030 1,362 24 1,386 Total notes and loans 6,500 $
430 $
6,930 Community Learning Center 12ro12erty acguisition loan 12ayable On September l, 2017, the City entered into an Agreement with Los Altos V. LP (Seller) for the purchase and sale of the former Northgate Market site located at 718-744 N. Anaheim Boulevard for the development of a Community Learning Center. The purchase price of the property is $4,750 of which $2,500 was paid in cash from resources of the Community Development Block Grant with the balance of $2,250 will be payable to Seller over five years at an annual interest rate of 5%. Principal and interest of $43 are due on the first of each month commencing on March 1, 2018 until February l, 2023. The annual loan payment will be funded from the restricted resources of the Community Development Block Grant yearly entitlement. The outstanding balance of the loan at June 30, 2022 was $336. Total debt service to maturity are as follows:
Fiscal Year Ending 6/30 2023 Total notes and loans Principal Interest Total 336 $
8 $
344 336 $
8 $
344 CITY OF ANAHEIM BUSINESS-TYPE ACTIVITIES:
BONDS PAYABLE At June 30, 2022, bonds payable consisted of the following:
Range of Interest Authorized Date Rates at and Outstanding Issued Maturitll Issue Date Issued 6L3ot2022 Electric Utility 2012 Revenue Bonds 10/1/2012 10/1/2031 3.1%- 5.0% $
47,200 $
47,200 2014 Revenue Bonds 10/8/2014 10/1/2025 2.0%- 5.0%
109,350 43,355 2015B Revenue Bonds 10/1/2016 10/1/2035 3.0% - 5.0%
92,865 61,835 2017A Revenue Bonds 12/21/2017 10/1/2028 5.0%- 5.0%
42,955 38,855 2017B Revenue Bonds 12/21/2017 10/1/2023 5.0%- 5.0%
9,205 9,205 2020A Revenue Bonds 3/4/2020 10/1/2050 5.0%- 5.0%
59,215 58,345 2020B Revenue Bonds 3/4/2020 10/1/2034 1.6%- 3.0%
121,795 115,680 2020C Revenue Bonds 3/4/2020 10/1/2045 5.0%- 5.0%
42,340 42,340 2022A Revenue Bonds 4/28/2022 10/1/2052 5.0%- 5.0%
156,530 156,530 2022B Revenue Bonds 4/28/2022 10/1/2034 5.0%- 5.0%
74,255 74,255 2022D Revenue Bonds 4/28/2022 10/1/2033 2.3%-4.1%
79,855 79,855 Total 727,455 Unamortized bond premiums/discounts, net 55,231 Total Electric Utility 782,686 Water Utility 2015 Revenue Bonds 4/21/2015 10/1/2040 4.0%- 5.0% $
44,725 $
44,725 2020A Revenue Bonds 3/4/2020 10/1/2025 5.0%- 5.0%
2,680 2,680 20208 Revenue Bonds 3/4/2020 10/1/2038 1.6%-3.0%
32,445 30,910 2022A Revenue Bonds 4/12/2022 10/1/2052 5.0% - 5.0%
44,955 44,955 2022B Revenue Bonds 4/12/2022 10/1/2049 2.5%-4.3%
79,260 79,260 2022C Revenue Bonds 4/12/2022 10/1/2040 5.0%- 5.0%
31,600 31,600 Total 234,130 Unamortized bond premiums/discounts, net 13,675 Total Water Utility 247,805 Sanitation Utility 2018 Revenue Bonds 1/25/2018 2/1/2048 5.0%- 5.0% $
45,705 $
40,930 Unamortized bond premium 6,397 Total Sanitation Utility 47,327 Convention, Sports and Entertainment Venues 2021 Revenue Bonds Bonds 12/15/2021 2/1/2048 0.9%- 3.3%
226,704 $
226,704 Total Convention, Sports and Entertainment Venues 226,704 Total business-type activities bonds
$1,343 639 $
1,304 522 91 I
Bonds Payable - Electric Utility The City's Electric Utility has pledged future electric revenues, net of certain costs, to repay a total of $1,030,350 outstanding long-term obligations, principal and interest. Proceeds from bonds provided financing for various capital improvements, primarily distribution assets. The Electric Utility's bonds are payable solely from electric customer net revenues and are payable through 2053. At June 30, 2022, the annual principal and interest payments on the bonds, were 49.71%
of net revenues. Principal and interest paid for the current fiscal year and total net revenues were $60,840 and $122,398 respectively.
The bond indentures of the respective Electric Revenue Bonds contain provisions of 1) in the event of default, the entire outstanding principal shall become due and payable; 2) requirement of a fund reserve for the maximum annual debt service; 3) requirement of a fund reserve for renewals and replacements in an amount equal to a maximum of 2%
of depreciated book value of the Electric Utility plant in service; and 4) requirement of a minimum debt service coverage ratio ofl.25.
Bond debt service requirements to maturity for the Electric Utility to be paid from revenues are as follows:
Fiscal Year Ending 6/30 2023 2024 2025 2026 2027 Total 2028-2032 2033-2037 2038-2042 2043-2047 2048-2052 2053 Unamortized bond premiums/discounts, net Total bonds Bonds Payable - Water Utility Principal Interest Total 36,295 $
29,847 $
66,142 37,755 29,301 67,056 44,510 27,560 72,070 46,395 25,672 72,067 43,655 23,688 67,343 248,575 87,489 336,064 160,685 40,497 201,182 38,280 22,773 61,053 42,205 12,241 54,446 26,225 3,756 29,981
--~2=,8~7~5 ---~7~2 --~2=9~4~7 727,455 302,895 1,030,350 55,231 55,231 782,686 $
302,895 $
1,085,581 The City's Water Utility has pledged future revenues from the sale of water, net of certain costs, to repay a total of $373,044 for outstanding long-term obligations, principal and interest. Proceeds from bonds provided financing for various capital improvements, primarily distribution assets. The bonds are payable solely from water net revenues CITY OF ANAHEIM and are payable through 2053. At June 30, 2022, the annual principal and interest payments on the bonds were 51.0% of net revenues. Principal and interest paid for the current fiscal year and total net revenues were
$13,475 and $26,436 respectively.
The bond indentures of the respective Water Revenue Bonds contain provisions of 1) in the event of default, the entire outstanding principal shall become due and payable; 2) requirement of a fund reserve for renewals and replacements in an amount equal to a maximum of 2%
of depreciated book value of the Water Utility plant in service; and 3) requirement of a minimum debt service coverage ratio of 1.0.
Bond debt service requirements to maturity for the Water Utility to be paid from revenues are as follows:
Fiscal Year Ending 6/30 Princieal Interest Total 2023 4,745 $
9,216 $
13,961 2024 6,990 9,203 16,193 2025 7,270 8,926 16,196 2026 7,575 8,620 16,195 2027 7,865 8,336 16,201 2028-2032 43,520 37,477 80,997 2033-2037 52,295 28,719 81,014 2038-2042 52,360 17,176 69,536 2043-2047 29,735 8,437 38,172 2048-2052 18,955 2,733 21,688 2053 2,820 71 2,891 Total 234,130 138,914 373,044 Unamortized bond premiums/discount, net 13,675 13,675 Total bonds 247,805 $
138,914 $
386,719 Bonds Payable - Sanitation Utility The City's Sanitation Utility has pledged future sanitation system net revenues to pay a total of $65,279 outstanding revenue bonds issued in January 2018. Proceeds from the bonds provided financing for capital improvements to the sanitation sewer collection system. The bonds are payable solely from system net revenues and are payable through February 2048. At June 30, 2022, total principal and interest payments on the bonds were 49.9% of net revenues. Total principal and interest paid and total system net revenues for the current fiscal year were
$3,406 and $6,827 respectively.
The bond indenture contains a provision that in the event of default, the entire outstanding principal shall become due and payable.
Bond debt service requirements to maturity for the Sanitation Utility to be paid from revenues are as follows:
Fiscal Year Ending 6£30 Princieal Interest Total 2023 1,355 $
2,047 $
3,402 2024 1,430 1,979 3,409 2025 1,495 1,907 3,402 2026 1,575 1,833 3,408 2027
. 1,645 1,754 3,399 2028-2032 9,575 7,447 17,022 2033-2037 12,220 4,801 17,021 2038-2042 7,455 1,820 9,275 2043-2047 3,395 722 4,117 2048-2049 785 39 824 Total 40,930 24,349 65,279 Unamortized bond premium 6,397 6,397 Total bonds 47,327 $
24,349 $
71,676 Bonds Payable - Convention, Sports and Entertainment Venues The bond indenture contains a provision in the event of default, the entire outstanding principal shall become due and payable, and the requirement of maintaining a fund reserve equal to the maximum of annual debt service.
The City purchased a Surety Policy and a Reserve Policy in satisfaction of the bond reserve requirement. Bond debt service requirements to maturity for the Convention, Sports and Entertainment Venues to be paid from revenues are as follows:
Fiscal Year Ending 6£30 Princieal Interest Total 2023 4,047 $
6,623 $
10,670 2024 6,926 6,284 13,210 2025 7,003 6,197 13,200 2026 7,102 6,091 13,193 2027 7,225 5,964 13,189 2028-2032 38,502 27,340 65,842 2033-2037 43,994 21,682 65,676 2038-2042 51,472 14,109 65,581 2043-2047 60,433 5,061 65,494 Total bonds 226,704 $
99,351 $
326,055 NOTES AND LOANS PAYABLE Note Payable - ARTIC Management CITY OF ANAHEIM Anaheim Regional Transportation lntermodal Center (ARTIC) Land Acquisition Loan payable In July 2012, the City entered into an agreement with the Orange County Transportation Authority (OCTA) for the Purchase and Sale of a 13.58 acres real property located at 1750 South Douglass Road in Anaheim. The purchase price for the site is $32,500. The City paid $1,000 at the close of escrow and the remaining $31,500 will be payable to OCTA over 13 years and bears 2% simple interest per annum. Annual principal payments are due on or before July 10th each year commencing 2012. The payment of accrued interest is deferred until equal payments of $1,883 are due and payable on or before July 10, 2024 and July 10, 2025. The loan is payable with the Anaheim Tourism Improvement Special District (ATID) special assessments and Measure M2 Local Fair Share funds. OCTA will retain payments from Anaheim's "Local Fair Share" funds allocated by OCTA under Measure M2 each year until the final payment is made on July 10, 2025. At June 30, 2022, accrued interest payable for the ARTIC loan was
$3,747. The City may elect to provide alternative funding from other City funds for transportation related purposes. At June 30, 2022, the outstanding balance of the ARTIC loan was $2,000. Loan debt service requirements to maturity are as follows:
Fiscal Year Ending 6£30 Princigal Interest Total 2023 2,000 2,000 2024 1,883 1,883 2025 1,883 1883 Total notes and loans 2,000 $
3,766 $
5,766 800 Megahertz Communication Equipment loan payable Portion of the 800 Megahertz Communication Equipment financing were allocated to The Electric Utility, the Sanitation Utility and the Convention, Sports & Entertainment Venues. Loan debt service requirements to maturity are as follows:
Electric Utility Fiscal Year Ending 6£30 Princigal Interest Total 2023 32 $
3 $
35 2024 33 2
35 2025 33 1
34 2026 34 1
35 2027-2031 17 17 Total notes and loans 149 $
7 $
156 9~
Sanitation Utility Fiscal Year Ending 6L30 Princigal Interest Total 2023 21 $
2 $
23 2024 21 1
22 2025 22 1
23 2026 22 1
23 2027-2031 11 11 Total notes and loans 97 $
5 $
102 Convention, Sports and Entertainment Venues Fiscal Year Ending 6L30 Princiga!
Interest Total 2023 3
3 2024 3
3 2025 3
3 2026 3
3 2027-2031 2
2 Total notes and loans 14 14 Coif Courses Equipment Loans The City entered into various long-term noncancellable finance-purchased agreements of Golf Course equipment. The debt services of these equipment loans will be repaid from the unrestricted revenue sources of the Golf Courses Enterprise Fund.
An Agreement with DDL Finance on October 5, 2020 to provide financing of $62 for the acquisition of golf carts at Dad Millers Golf Course. The interest rate for the loan is 4.58% per annum, payable monthly beginning on November 5, 2020 and ending on November 5, 2025. Total debt service to maturity is $69. At June 30, 2022, the principal loan balance is $42.
An Agreement with PNC Equipment Finance on September 15, 2021 to provide financing of $50 for the acquisition of golf course equipment.
The interest rate for the loan is 2.0% per annum, payable monthly beginning on September 15, 2021 and ending on August 15, 2026. Total debt service to maturity is $53. At June 30, 2022, the principal loan balance is $42.
An Agreement with PNC Equipment Finance on November 1, 2021 to provide financing of $67 for the acquisition of golf course equipment.
The interest rate for the loan is 2.0% per annum, payable monthly beginning on November 1, 2021 and ending on November 1, 2026. Total debt service to maturity is $70. At June 30, 2022, the principal loan balance is $58.
CITY OF ANAHEIM Loan debt service to maturity requirements are as follows:
Fiscal Year Ending 6L30 Princiga!
Interest Total 2023 35 $
4 $
39 2024 36 3
39 2025 37 2
39 2026 28 28 2027 6
6 Total notes and loans 142 $
9 $
151 ARBITRACE 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 City to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of the City's debt and interest earned on the proceeds thereof are subject to the requirements of the Act. The City has accrued a liability for estimated rebatable arbitrage earnings and has set aside such earnings as restricted cash. AtJune 30,2021, the arbitrage rebate liability for governmental and business-type activities was zero and $130, respectively.
LECAL DEBT MARCIN The City of Anaheim has a general obligation debt limit that cannot exceed 3.75% of the total assessed valuation of all real and personal property within the City. Based on the fiscal year 2021-2022 gross assessed valuation for taxation purposes of $53,036,796, the City has a debt limit of $1,988,880 or 3.75%. Currently the City does not have any outstanding bonded indebtedness in the form of general obligation bonds. Since the outstanding bond principal is zero, the City has a net debt margin of $1,988,880.
COMPLIANCE WITH DEBT COVENANTS There are various limitations and restrictions contained in the City's bonds indentures. The City believes they are in compliance with all significant limitations and restrictions.
DEBT ISSUANCES City - Debt Issuances On December 15, 2021, the City issued Anaheim Public Financing Authority (APFA) Lease Revenue Bonds (Convention Center Refunding)
Series 2021-A in the principal amount of $250,250 at par to refund the outstanding principal balance of the 2014-A Lease Revenue Bonds.
Interest rates for the bonds range from 0.863% to 3.265%. Total debt 9.t
service to maturity is $360,057 payable semi-annually beginning from July l, 2022 and ending on July l, 2046. Annual principal payment ranges from $4,150 to $14,240. The bond proceeds, net of underwriter discount of $723 and along with the2014-A bond reserve fund of$8,079 totaled $257,606 was disbursed by the bond trustee as follows: $671 for the acquisitions of an insurance and a surety policies in satisfaction of the bond reserve requirements; $685 for the Cost of issuance fund, and $256,250 to the refunding bond escrow agent of which $8,079 representing current accrued debt service due and $248,171 to advance refund the $225,258 outstanding principal balance of the 2014A bonds.
The City reduced its total debt service payments over the life of the refunded bonds by $45,331 and obtained a present value savings of
$25,777.
Consistent with the components of the sources and uses of funds, the 2021-A Lease Revenue Bonds refunded principal of $250,250 have been allocated to the Municipal Facilities nonmajor governmental Debt Service Fund and the Convention, Sports and Entertainment Enterprise Fund in the amount of $23,546 and $226,704 respectively. The debt services will be repaid with unrestricted resources transferred from the General Fund.
On March 4, 2022, the City executed two separate Escrow and Account Control Agreements from an existing Master Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp to finance the acquisitions of eight Emergency Transport Ambulances and various technology infrastructure equipment. The Emergency Transportation Ambulances financing is $1,500, at an interest rate of 2.48%, payable semi-annually beginning on September 4, 2022 and ending on March 4, 2029. Annual principal and interest payment is $235. Total debt service to maturity is $1,643 and will be repaid from the unrestricted General Fund resources. The technology infrastructure equipment financing is $6,500, at an interest rate of 2.3631%, payable semi-annually beginning on September 4, 2022 and ending on March 4, 2027. The annual principal and interest payment is $1,386. Total debt service to maturity is $6,930 and will be repaid from the unrestricted Information and Communication Services Internal Service Fund.
On September 15, 2021 and on November l, 2021, the Golf Courses entered into separate finance-purchased agreements totaling $117 with an interest rate of 2% per annum, payable monthly, to purchase various golf course equipment. Total debt services to maturity of the loans totaling $123 and will be repaid from the unrestricted resources of the Golf Courses enterprise fund.
CITY OF ANAHEIM Electric Utility - Debt Issuances The Electric Utility's bonds are payable from the electric system net revenues.
On April 28, 2022, the Electric Utility issued Anaheim Housing and Public Improvement Authority (AHPIA} 2022-A Revenue/Revenue Refunding Bonds in the principal amount of $156,530, at a premium of $17,203, totaling $173,734. The true interest cost of the 2022-A bonds is 3.80%,
payable semi-annually beginning from October l, 2022 and ending on October l, 2052. Annual principal payment ranges from $675 to $19,560.
Total debt service to maturity of the refunded bonds is $249,592.
Proceeds of the bonds, net of underwriter discount ($353) and cost of issuance ($522), provides* $50,000 financing for the acquisition and construction of certain capital improvements to the Electric System Projects, the remaining balance of $122,860 was transferred to the refunded bond escrow agent to partially refund the $14,335 outstanding principal balance of the 2012-A Electric Revenue bonds, and partially refund $104,235 of the outstanding principal balance of the 2017-B Electric Revenue bonds. The Electric Utility reduced its total debt service payments over the life of the refunded bonds by $9,570 and obtained a net present value savings of $7,970.
On April 28, 2022, the Electric Utility issued AHPIA 2022-B Revenue Bonds in the principal amount of $74,255, at a premium of $8,177, totaling
$82,432. Proceeds of the bonds, net of underwriter discounts ($167) and cost of issuance ($118), provides $75,000 financing for the acquisition and construction of certain infrastructure improvement to the Electric System Projects, and provides funding for a Capitalized Interest Fund account of $7,147. The true interest cost of the 2022-B bonds is 3.41%,
payable semi-annually beginning on October l, 2022 and ending on October l, 2034. Annual principal payment ranges from $5,190 to $8,560.
Total debt service to maturity is $103,670.
On April 28, 2022, The Electric Utility issued AHPIA 2022-D Revenue Refunding Bonds in the principal amount of $79,855. The true interest cost of the 2022-D bonds is 3.85%, payable semi-annually beginning on October 1, 2022 and ending on October 1, 2023.Annual principal payment ranges from $1,950 to $16,755. Total debt service to maturity is $100,697.
Proceeds of the bonds, net of underwriter discount ($181) and cost of issuance ($135) totaling $79,539 was transferred to the refunding bond escrow agent to partially refund $76,975 outstanding principal balance of the 2017-B Electric Revenue Bonds. The Electric Utility reduced its total debt service payment over the life of the refunded bonds by $9,834 and obtained a net present value savings of $4,909.
Water Utility-Debt Issuances The Water Utility's bonds are payable from the water system net revenues.
On April 12, 2022, the Water Utility issued AHPIA 2022-A Revenue Bonds in the principal amount of $44,955, at a premium of $5,320, totaling
$50,275. Proceeds from the bonds, net of underwriter discount ($140) and cost of issuance ($135) provides $50,000 financing for the acquisition
_ and construction of various water system capital improvements. The true interest cost of the 2022-A is 4.1%, payable semi-annually beginning on October 1, 2022 and ending on October 1, 2052. Annual principal payment ranges from $660 to $2,800. Total debt service to maturity is $88,973.
On April 12, 2022, the Water Utility issued AHPIA2022-B Revenue Bonds in the principal amount of $79,260 at par. The true interest cost of the bonds is 3.96%, payable semi-annually beginning from October 1, 2022 and ending on October 1, 2049. Annual principal payment ranges from
$555 to $4,840. Total debt service to maturity is $125,220. Proceeds from the bonds, net of underwriter discount ($245) and cost of issuance
($243), totaled $78,772 was transferred to the refunding bonds escrow agent to partially refund the $39,065 outstanding principal balance of the 2015-A Water Revenue Bonds, and partially refunded the $34,305 outstanding principal balance of the 2020-A Water Revenue Bonds. The Water Utility reduced its total debt service payment over the life of the refunded bonds by $3,651 and obtained a net present value savings of
$2,466.
On April 12, 2022, the Water Utility issued AHPIA 2022-C in the principal amount of $31,600, at a premium of $3,914, totaling $35,514. The true interest cost of the 2022-C bonds is 3.8%, payable semi-annually beginning from October 1, 2022 and ending on October 1, 2040. Annual principal payment ranges from $835 to $6,085. Total debt service to maturity is $52,187. Proceeds from the bonds, net of underwriter discount
($98) and cost of issuance ($96), totaled $35,320 was transferred to the refunded bond escrow agent to refund the 2010 Water revenue bonds outstanding balance of $29,690. The Water Utility increased its total debt service payment over the life of the refunded bonds by $8,375 at a present value cost of $5,707. The refunding will remove the interest rate risk associated with the Build America Bonds interest rate cost subsidy, which is scheduled to expire on December 21, 2022.
DEBT RETIREMENTS Debt Defeased The City defeased the following bonds prior to June 30, 2022:
City 1997-C APFA Capital Appreciation Bonds CITY OF ANAHEIM Outstanding 6/30/2022 84,270 2014 A Lease Revenue Bonds (Anaheim Convention Center Expansion Project) 227,990 Electric Utility 2012-A Electric Revenue Bonds 2017-B Electric Revenue Bonds Water Utility 2015-A Water Revenue Bonds 2020- A Water Revenue Bonds 76,340 76,975 39,065 34,3QS 538,945 In the refunding, the proceeds of the refunding issue were placed in irrevocable escrow accounts and invested in government securities that, together with interest earnings thereon, will provide amounts sufficient for future payments of interest and principal on the issues refunded. Refunded debt is not included in the City's accompanying basic financial statements as the City has satisfied its obligation through the in-substance defeasance of these issues.
CONDUIT FINANCINCiS City The City has entered into a conduit financings to facilitate the management agreement for the Honda Center (formerly the Arrowhead Pond) of Anaheim. In accordance with applicable agreements, the City has no obligation for debt service payments and therefore, the debt is not reflected in the accompanying basic financial statements. Bonds payable and certificates of participation related to conduit financings outstanding at June 30, 2022, were as follows:
2003 Anaheim Arena Financing Project Date Issued 12/11/2003 Anaheim Housing Authority Final Maturity 6/1/2023 Amount Issued Outstanding 6/30/2022 42,600 =$===4=='=50===0 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 projects within the City of Anaheim. In accordance with the bond documents, neither the City nor the Housing Authority has an obligation for debt service payments and therefore, the debt is 9E
not reflected in the accompanying basic financial statements. Housing Authority revenue bonds related to conduit financings outstanding at June 30,2022, were as follows:
Date Final Amount Outstanding Issued Maturih(
Issued 6L30L2022 Sage Park Project 11/1/1998 11/1/2028 $
5,500 $
5,500 Sciara Court Apartments 11/28/2004 12/1/1934 8,200 4,078 Pradera Apartments (Lincoln 5/15/2009 4/15/1939 23,217 5,999 Anaheim) Phase B Anton Monaco Apartments 12/14/2012 1/1/2046 35,460 31,749 Crossings at Cherry Orchard 8/23/2012 12/1/2044 9,365 976 Apartments Tranche A Crossings at Cherry Orchard 8/23/2012 12/1/2029 2,985 1,758 Apartments Tranche B Paseo Village Apartments 2/28/2013 9/1/2045 19,750 11,683 Village Center Apartments 8/7/2014 3/1/2047 15,000 14,413 Pebble Cove Apartments Series A 8/19/2015 9/1/2031 13,000 11,885 Pebble Cove Apartments Taxable 8/19/2015 8/1/2055 3,550 3,550 Subordinate Series 2015A Hermosa Village Apartments Phase l 12/28/2016 7/1/2049 41,028 25,698 Series A-l/A-2 Miracle Terrace Apartments Series B-1.
1/10/2017 2/1/2050 26,555 25,672 Cobblestone Apartments Series A-1 3/14/2017 10/1/2054 6,185 5,919 Sea Wind Apartments Series 8-1 3/14/2017 10/1/2054 11,015 10,479 Jamboree Anaheim PSH Apartments Series A 4/30/2020 5/1/2038 12,200 12,200 Hermosa Village Apartments Phase 2 Series A 1-3 10/30/2020 5/1/2038 20,798 9,727 The Salvation Army Anaheim Center of Hope Apts A-1 2/1/2022 2/1/2025 1,800 1,800 The Salvation Army Anaheim Center of Hope Apts A-2 2/1/2022 2/1/2025 850 850 Total
$ 256.458 $
183,936 FIDUCIARY FUNDS Successor Agency The following is a summary of changes in long-term debts for the year ended June 30, 2022:
Due Within Beginning Additions/ Reductions/
Ending One Balance Proceeds Pa)lments Balance Year Bonds payable 133,620 (8,460) $
125,160 $
8,935 premium/(discount), net (2,368)
(2,368)
Lease payable 19,613 (443) 19,170 382 Due to City of Anaheim 6261 (1261) 5000 1,334 159,494 (12 532) $
146,962 $ 10,651 CITY OF ANAHEIM Bonds Payable 2007 Tax Allocation Refunding Bonds The Successor Agency will repay a total of $44,695, principal and interest, for the outstanding 2007 tax allocation bonds issued in December 2007 from the semi-annual Redevelopment Property Tax Trust Fund (RPTTF) revenue allocations. Proceeds from the bonds provided financing for public improvements related to the merged project areas, for the supply of low-and moderate-income housing within the City, to repay certain Redevelopment Agency loan obligations and to advance refund the 1992, 1997 and 2000 bonds. The bonds bear interest at rates ranging from 4.25% to 6.50% and are payable through February 2031. During the fiscal year ended June 30, 2022, total principal and interest paid was$5,636.
In January 2018, series A and C of the 2007 Tax Allocation Bonds were refunded through the issuance of the 2018 Tax Allocation Refunding Bond~
Debt service requirements to maturity for 2007 Tax Allocation bonds, series B and D are as follows:
Fiscal Year Ending 6/30 2023 2024 2025 2026 2027 2028-2032 Total bonds Principal 1,780 1,875 1,990 2,130 4,270 20,065 32.110 2018 Tax Allocation Refunding Bonds Interest Total 2,089 $
3,869 1,973 3,848 1,851 3,841 1,722 3,852 1,583 5,853 3,367 23,432 12,585 $
44,695 On January 25, 2018, the Successor Agency issued Tax Allocation 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 Tax Allocation Bonds series A and C, and the 2010 Recovery Economic Zone Development Bonds. The Successor Agency will repay a total of $118,891, principal and interest, from the semi-annual RPTTF revenue allocations. The refunding bonds bear interest at rates ranging from 2.27% to 2.50% and are payable through February 2031.
Debt service requirements to maturity for the 2018 Tax Allocation Refunding bonds are as follows:
Fiscal Year Ending 6{_30 eci cipgl l tecest Iota!
2023 7,155 $
4,653 $
11,808 2024 7,530 4,295 11,825 2025 7,915 3,918 11,833 2026 9,990 3,523 13,513 2027 10,255 3,023 13,278 2028-2032 50 205 6429 56 634 Total bonds 93,050 25,841 118,891 Unamortized bond premium/
discounts, net 11795 11795 Total bonds 104,845 $
25,841 $
130,686 Due to the City of Anaheim The Successor Agency will repay a total of $1,799 outstanding long-term obligations, principal and interest, from the semi-annual RPTTF revenue allocations for the $10,000 Cooperation Agreement dated April 1, 2003, between the former Redevelopment Agency and the City, whereby the City assisted the former Agency with the development of the Anaheim Westgate Center (Westgate project) utilizing $10,000 of funds from the HUD Section 108 loan. This Cooperation Agreement obligation (HUD Section 108 loan) bears interest ranging from 1.74% to 5.97% and is payable semi-annually through August 2023. At June 30, 2022, outstanding principal due to the City for the Westgate project obligation was $1,705.
Principal and interest paid for the current fiscal year were $1,034.
Fi,scal Year Ending 6{_30 Principal Interest Total 2023 975 $
72 $
1,047 2024 730 22 752 Total notes and loans 1,705 $
94 $
1,799 The Successor Agency will repay a total of $3,922 outstanding long-term obligations, principal and interest, from the semi-annual RPTTF revenue allocations for the $7,000 Cooperation Agreement dated June 2010 between the former Redevelopment Agency and the City, whereby the City assisted the former Redevelopment Agency with the rehabilitation of the historic Packing House site utilizing proceeds from the HUD Section 108 loan. This Cooperation Agreement obligation (HUD 108 Section loan) bears interest ranging from 1.68% to 3.98% and is payable over20 years beginning on February 1, 2011 through August l, 2030. As of June 30, 2022, the outstanding principal due to the City for the Packing House site project obligation was $3,295. Principal and interest paid for the current fiscal year were $498.
CITY OF ANAHEIM Fiscal Year Ending 6{_30 eci cipgl l tecest Iota!
2023 359 $
131 $
490 2024 364 117 481 2025 369 102 471 2026 375 87 462 2027 382 71 453 2028-2033 1446 119 1565 Total notes and loans 3,295 $
627 $
3,922 Mello-Roos Community Facilities Districts The City issued special tax bonds to finance construction in various Community Facilities Districts (CFD). These bonds were authorized pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds are payable from a special assessment tax and are non-recourse bonds secured by the properties. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision of either of the foregoing is pledged to the payment of the bonds. The bonds are not general or special obligations of the City, nor do they contain any credit enhancements that secondarily pledge existing or future resources of the City, accordingly they are not reflected in the accompanying basic financial statements. The City is acting as agent only for the property owners in collecting the special assessments and forwarding the collections to the fiscal agent. This activity is recorded in the Custodial fund of the Fiduciary Funds in the basic financial statements.
At June 30, 2022, the City has the following outstanding Mello-Roos special tax bonds:
CFD 06-02 CFD 08-01 Outstanding 6/30/2022 6,015 46,690 52,705 In February 2007, the City issued $9,060 in special tax bonds to finance a portion of the cost of acquisition and construction of facilities in the Platinum Triangle of Anaheim, Community Facility District 06-2. Stadium Loft. On August 10, 2016, the outstanding balance of $7,680 of the 2007 special tax bonds were refunded by Special Tax Refunding Bonds, Series 2016, CFD 06-02, in the principal amount of $7,540 and at a premium of
$91. The City reduced the CFD 06-2 total debt service payments over the life of the refunded bonds by $1,989 with a present value savings of $1,352.
The true interest cost is 2.89% payable semi-annually commencing from March l, 2017 through September l, 2037. Balance of total debt service is
$7,601 to maturity.
9E
In August 2010, the City issued $28,630 in special tax bonds, Series 2010 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 fund a reserve fund for the Series 2010 Bonds. On August 10, 2016 the City issued Special Tax Bonds, Series 2016, CFD 08-1 in the principal amount of $60,000 and at a premium of $5,923. The bonds are being used to provide financing for acquisition and construction of certain public CITY OF ANAHEIM facilities necessary for the continued development of the District, and to refund $22,730 outstanding principal of the CFD 08-1, Special Tax Bonds, Series 2010. The City reduced the CFD 08-1 total debt service payments over the life of the refunded bonds by $13,325 with a present value savings of $8,649. The true interest cost is 3.38% payable semiannually commencing from March 1, 2017 through September 1, 2037. Balance of total debt service is $77,465 to maturity.
CITY OF ANAHEIM NOTE 11 - OTHER LONG-TERM LIABILITIES:
The following is a summary of other long-term liabilities reported in the government-wide financial statements for the fiscal year ended June 30, 2022:
Beginning Reductions/
Ending Due Within Balance Additions Pa:tments Balance One Year Governmental activities:
Claims liabilities (note 8) 59,119 $
13,700 $
(14,300) $
58,519 $
13,826 Compensated absences (note 1) 24665 26 923 (27,129) 24459 l8,2Q2 Due to other governments 22 580
{3,560) 19020 Other Postemployment Benefits (OPEB) (note 14)
Governmental Funds 110,369 (35,022) 75,347 Internal Service Funds 9 073 (3,393) 5 680 Total 119 442 (38,415) 81027 Pension (note 13):
Governmental Funds 621,869 (233,733) 388,136 Internal Service Funds 33,541 (13,264) 20277 Total 655 410 (246,997) 408 413 Governmental activities total 881,216 40623 (330 401) 591438 32 028 Business-type activities:
San Juan reclamation liability 5411 (469}
4942 Provision for decommissioning liability (note 1) 80889 11070 (4,180) 87779 Other Postemployment Benefits (OPEB) (note 14)
Electric Utility 20,912 (7,517) 13,395 Water Utility 7,571 (2,634) 4,937 Sanitation Utility 5,057 (1,806) 3,251 Golf Courses 299 (111) 188 Convention, Sports and Entertainment Venues 6 819 (2,468) 4351 Total 40658 (14,536) 26122 Pension (note 13)
Electric Utility 98,035 (39,858) 58,177 Water Utility 31,067 (12,522) 18,545 Sanitation Utility 16,006 (6,288) 9,718 Golf Courses 1,146 (472) 674 Convention, Sports and Entertainment Venues 33182 (18,603) 14 579 Total 179 436 (77,743) 101693 Business-type activities total 306 394 11070 (96,928) 220 536 Government-wide total 1,187,610 $
51,693 $
(427,329) $
811,974 $
32,028 10
Governmental activities Due to other governments The California Department of Finance (DOF) approved the Successor Agency's Long Range Property Management Plan (LRPMP) on December 31, 2015; the LRPMP authorized the transfer of all of the properties formerly held by the Successor Agency to the City for either governmental use or future development. The California Redevelopment Agency Dissolution Law (ABxl 26, AB 1484, AB 471 and SB 107, as the same may be amended from time to time) addresses the distribution of land sale proceeds from the sale of those properties and suggests that such distribution be memorialized in agreements (Compensation Agreements) among the entities that receive the former redevelopment agency's property tax increment. To date, no Compensation Agreements have been executed, but such distribution may involve the transfer of $0 up to the estimated net tota 11 ia bi I ity at June 30, 2020 of $22,580 to those taxing entities. During fiscal year 2022, payment of $3,560 was paid to the County of Orange for the distribution to other taxing entities. The balance of the estimated accrued liability at June 30, 2022 was $19,020.
Business-type activities Other liability - San Juan reclamation obligation The Electric Utility is providing for the future reclamation costs allocation based on its former ownership share of Unit 4 of 10.04% of the San Juan (SJ) Generation Station. The Electric Utility has $5,512 in an irrevocable trust as of June 30, 2022 for reclamation costs and with a reclamation obligation of $4,942. During fiscal year 2022, the Electric Utility paid $375 related to San Juan reclamation obligation and transferred amount of the overfunding ($93) to deferred inflow of resources related to regulated business activities for the benefits of utility rate payers. Balance of the regulated business activities related to SJ reclamation was $570 at June 30, 2022.
SUCCESSOR AGENCY Other long-term liabilities The Successor Agency has the following other long-term liabilities at June 30, 2022:
Beginning Additions/
Reductions/
Ending Within One Bolance Proceeds Payments Balance Year Notes and loans payable $
2,707 2.707 Pollution remediation liability 19,834 (2,026) 17,808 $
1992 22 541 (2,026) $
20 515 $
1992 CITY OF ANAHEIM Savi Ranch Associates note payable In July 1989, the former Redevelopment Agency executed a note with Savi Ranch Associates, a California general partnership. The amount of the note 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 note. If there is insufficient RPTTF revenue to pay for principal and interest at the termination of the River Valley project area plan in November 2031, the note ceases to be an obligation of the Successor Agency. For the fiscal year ended June 30, 2022, total interest paid was $443.
Westgate Pollution Remediation Obligation In June 2003, the former Redevelopment Agency acquired property located at 2951 West Lincoln Avenue as part of a redevelopment project named the Westgate project. Approximately 11 acres of the property were formerly known as the Sparks and Rains Landfills. The County of Orange was the operator of these landfills until 1960. In November 2008, the County paid the Redevelopment Agency $5,176 in settlement of claims related to the pollution remediation for the Westgate project site prior to the development of a shopping center. The total costs of the pollution remediation work amounted to $12,420 based on the actual contract received for the project. Subsequently, management identified potential additional pollution remediation costs including ongoing maintenance responsibilities required for the Westgate project amounting to $18,576 in Fiscal Year 2015 and $4,351 in Fiscal Year 2021.
During fiscal year 2022, the Successor Agency paid $2,026 related to the Westgate pollution remediation cost. The pollution remediation liability at June 30, 2022 is estimated to be $17,808.
NOTE 12 - LEASE PAYABLE:
The City is a lessee for non cancellable leases of land, building and equipment. The City's lease payable at June 30, 2022 were valued at $4,375 for Governmental Activities and $2,997 for Business-type Activities. At June 30, 2022, Right-to-use leased assets, net of accumulated amortization, related to these leases were $4,699 and
$3,019 for the Governmental and Business-type Activities respectively.
The right-to-use leased asset balances and the related accumulated amortization are displayed on note 7 on page 84 of the notes to the financial statements.
The City's incremental borrowing rate of 1.75% (rate in July 2021) was applied to those leases that do not have a specific interest rate.
Lease payable of the governmental activities totaling $4,375 consist the following:
10
Lease payable for right-to-use leased building totaling $16 has a remaining lease term that ends on November 30, 2022, principal and interest for the remaining lease payment is $16.
Lease payable for right-to-use leased land totaling $2,899, the remaining lease terms range from April 10, 2027 to January 31, 2065, annual principal and interest payment ranges from $81 to
$140.
Lease payable for right-to use leased equipment totaling $1,460 for the City's computer leases, the remaining lease terms range from July 30, 2022 to June 29, 2026. Annual principal and interest payment ranges from $133 to $912.
Lease payable of the business-type activities totaling $2,997 consist the following:
Lease payable for right-to-use leased equipment totaling $75 at a rate of 2.37% and ends on August l, 2023, annual principal and interest payment ranges frorri $11 to $65.
Lease payable for right-to-use leased land totaling $2,922, the remaining lease terms range from March 18, 2024 to April 30, 2046; annual principal and interest payment ranges from $65 to $315.
The future principal and interest lease payments as of June 30, 2022, were as follows:
Governmental l!,ctilljtjes Bysjness-!ype Actillitii:s fiscal year Principal lnteresl Principal lateres!
2023 925 $
76 $
328 $
52 2024 464 60 135 46 2025 158 52 128 44 2026 30 49 132 42 2027 23 48 136 39 2028-2032 141 235 739 160 2033-2037 193 221 830 91 2038-2042 253 201 291 37 2043-2047 324 177 278 10 2048-2052 405 145 2053-2057 499 106 2058-2062 607 58 2063-2067 353 8
Total 4.375 $
1,436 $
2.997 $
521 The Fiduciary Fund -Successor Agency is a lessee for non ca ncella ble leases of land. Lease payable atJune 30, 2022 was $19,170. The Successor Agency recorded the right-to-use leased land of $19,613 with an accumulated amortization of $729, and the lease payable on the Statement of Fiduciary Fund net position. The Successor Agency subleased a portion of the leased land to a third party and has recorded a lease receivable of $6,196 with a corresponding deferred inflow of resources of $6,109.
CITY OF ANAHEIM Lease payable for right-to-use leased land totaling $19,170, at the Successor Agency's incremental borrowing rate of 1.75%, the remaining lease term rangefromApril 30,2041 toJanuary29,2078; annual principal and interest payment ranges from $216 to $1,026.
The future principal and interest lease payments as of June 30, 2022, for the Successor Agency were as follows:
Fiscal year 2023 2024 2025 2026 2027 2028-2032 2033-2037 2038-2042 2043-2047 2048-2052 2053-2057 2058-2062 2063-2067 2068-2077 Total Principal Fiduciary Fund Interest 382 330 419 324 444 316 452 308 478 300 2,798 1,364 3,513 1,093 3,320 765 525 624 706 572 899 505 919 425 1,116 340 3 202 328 19.170 7.596 10
NOTE 13 - PENSIONS:
General information about the Pension Plans Plan Description The City provides pension benefits to eligible full-time employees in three separate pension plans: Miscellaneous Plan, Police Safety Plan and Fire Safety Plan. These plans are agent multiple-employer public employee defined benefit plans and are administered through the California Public Employees' Retirement System (Cal PERS), which acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance.
Cal PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the Cal PERS website@
WWW.cal pers.ca.gov.
Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment.
Members with five years of total service are eligible to retire at age SO with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 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 Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee's Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2022 are summarized as follows:
Miscellaneous Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit formula 2.7%@55 2.0%@62 Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life Retirement age 50-55 52-65 Monthly benefits, as a% of eligible compensation 2.70%
2.00%
Required employee contribution rates 8.00%
7.50%
Required employer contribution rates 11.960%
11.960%
Hire Date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates Hire Date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates Employees Covered CITY OF ANAHEIM Police Safety Prior to January 1, 2013 3.0%@50 5 years' service monthly for life 50 3.00%
9.00%
24.080%
On or after January 1, 2013 2.7%@57 5 yea rs' service monthly for life 52-57 2.70%
13.50%
24.080%
Fire Safety Prior to January 1, 2013 3.0%@50 5 years' service monthly for life 50 3.00%
9.00%
19.030%
On or after January 1, 2012; January 1, 2013 2%@50; 2.7%@57 5 years' service monthly for life 50;57 2.0%; -2.7%
9.00%; 12.00%
19.030%
As of the June 30, 2021 actuarial valuation, the following employees were covered by the benefit terms for each Plan:
Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Total Mjsce!laneous 2,330 Police Safety 626 Fire Safety 328 1,853 79 71
---~1~4=3=9 --~3=9=2 --~2=0=3
=======5=6=2=2===1=0=9=7======6=0=2 10
CITY OF ANAHEIM Contributions Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. The total plan contributions are determined through Cal PERS' annual actuarial valuation 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.
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 2022. The contribution requirements of plan members and the City are established and may be amended by Cal PERS.
Emr;iloyer Rate Total Rate CalPERS Retirement Employee Employee Group Membershir;i1 Formula Rate Emr;iloyee2 City Emr;iloyee City Total Rate Miscellaneous Employees Management; confidential Classic 2.7%@55 8.000%
4.000%
7.960%
12.000%
7.960%
19.960%
Anaheim Municipal Employees Association (AMEA) General New 2%@62 7.500%
0.000%
11.960%
7.500%
11.960%
19.460%
Anaheim Municipal Employees Association (AMEA) Clerical International Brotherhood of Electrical Workers (IBEW)
Anaheim Police Association Trainees Safety Employees Fire Management Classic 3%@50 9.000%
3.000%
16.030%
12.000%
16.030%
28.030%
Anaheim Fire Association (AFA)
Classic 2%@50 9.000%
3.000%
16.030%
12.000%
16.030%
28.030%
New 2.7%@57 12.000%
0.000%
19.030%
12.000%
19.030%
31.030%
Police Management Classic 3%@50 9.000%
3.000%
21.080%
12.000%
21.080%
33.080%
Anaheim Police Management Association (APMA)
New 2.7%@ 57 13.500%
0.000%
24.080%
13.500%
24.080%
37.580%
Anaheim Police Association (APA) 1 Definition of a 'New' PERS member A new hire who is brought in CalPERS 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 Cal PERS 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 Cal PERS 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.
FY2022 UAL Contribution3 37,532 10,579 18,028 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 needed 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. Effective in fiscal year 2018, Cal PERS began collecting employer contributions toward the plan's UAL as a dollar amount instead of the prior method of a contribution rate.
10
The pension plans (pensions) are recognized in the government-wide financial statements and proprietary funds financial statements on an accrual basis of accounting, while the contributions to the pension plan are recognized as expenditures on modified accrual basis of accounting on the governmental fund statements.
The net pension liability in the Statement of Net Position represents the City's excess of the total pension liability over the fiduciary net position reflected on the Valuation Reports provided by Cal PERS. The net pension liabilities are measured as of the City's prior fiscal year. Changes in net pension liability are recorded as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change.
The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which the difference incurred.
Projected earnings on pension investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.
Net Pension Liability The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plan is measured as of June 30, 2021. Liabilities are based on the results of the actuarial calculations performed as of June 30, 2020 and were rolled forward to determine the June 30, 2021 total pension liability. Fiduciary net position is based on fair value of investments as of June 30, 2021.
CITY OF ANAHEIM Actuarial Assumptions:
A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Valuation Date (VD)
Measurement Date (MD)
Measurement Period Reporting Date (RD)
Actuarial Cost Method Asset Valuation Method Actuarial Assumptions:
Discount Rate Inflation Salary Increase Payroll Growth Investment Rate of Return Retirement Age Mortality Post-Retirement Benefits Increase Change of Assumptions June 30, 2020 June 30, 2021 July 1, 2020 to June 30, 2021 June 30, 2022 Entry Age Normal in accordance with the requirements of GASB 68 Fair Value of Assets 7.1S%
2.50%
Varies by Entry Age and Service 2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Derived using Cal PERS' membership data for all funds. The probabilities of mortality are based on the 2017 Cal PERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include lS years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.5% thereafter There was no change of assumptions for the measurement year.
Discount Rate The discount rate used to measure the total pension liability was 7.15%.
The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan 10
investments was applied to all periods of projected benefits payments to determine the total pension liability.
Long-term expected rate of return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, Cal PERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of a1I of the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (ll+years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for the assumed administrative expenses.
The expected real rates of return by asset class are as followed:
Current Target Real Return Real Return Asset Class1 Allocation Years 1-102 Years 11+3 Global Equity 50.00%
4.80%
5.98%
Fixed Income 28.00%
1.00%
2.62%
Inflation Assets 0.77%
1.81%
Private Equity 8.00%
6.30%
7.23%
Real Estate 13.00%
3.75%
4.93%
Liquidity 1.00%
-0.92%
100.00%
1 Cal PERS' ACFR, Fixed income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities 2 An expected inflation of 2.0% used for this period 3 An expected inflation of 2.92% used for this period Recognition of Cains and Losses Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
CITY OF ANAHEIM The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
Difference between projected 5 year straight-line amortization and actual earnings on investments All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period Change in the Net Pension Liability Net pension liability is the plan's total pension liability based on the entry age normal actuarial cost method less the plan's fiduciary net position.
The following tables show the changes in net pension liability for each Plan recognized over the measurement period:
Total Plan Net Pension Pension Fiduciary Liability/
Liability Net Position (Asset)
Miscellaneous Plan:
{al
{bl
{cl = {al - {bl Balance at June 30, 2020 (VD)
$ 1,528,159 $ 1,087,411 $
440,748 Changes recognized for the Measurement Period:
Service Cost 24,229 24,229 Interest on the Total Pension Liability 106,426 106,426 Difference between Expected and Actual Experience (10,970)
(10,970)
Contribution from the Employer 49,044 (49,044)
Contributions from Employees 9,589 (9,589)
Net Investment Income 245,656 (245,656)
Benefit Payments, including Refunds of Employee Contributions (81,651)
(81,651)
Administrative Expenses
{1,086l 1086 Net Changes during 2020-2021 38034 221,552
{183,518l Balance at June 30, 2021 (MD}
$ 1,566,193 $ 1,308,963 $
257,230 10
Total Plan Net Pension Pension Fiduciary Liability/
Liability Net Position (Asset)
Police Safety Plan:
!al
!bl
/cl = /al - {bl Balance at June 30, 2020 (VD) 863,354 $
614,341 $
249,013 Changes recognized for the Measurement Period:
Service Cost 17,747 17,747 Interest on the Total Pension Liability 60,990 60,990 Difference between Expected and Actual Experience 3,081 3,081 Contributions from Employer 29,138 (29,138)
Contributions from Employees 5,525 (5,525)
Net Investment Income 138,954 (138,954)
Benefit Payments, including Refunds of Employee Contributions (44,591)
(44,591)
Administrative Expenses (6141 614 Net Changes during 2020-2021 37 227 128,412 (91,1851 Balance at June 30, 2021 (MD) 900,581 $
742,753 $
157,828 Total Plan Net Pension Pension Fiduciary Liability/
Liability Net Position (Asset)
Fire Safety Plan:
/al
{bl
{cl = /al - {bl Balance at June 30, 2020 (VD) 476,582 $
331,497 $
145,085 Changes recognized for the Measurement Period:
Service Cost 7,330 7,330 Interest on the Total Pension Liability 33,408 33,408 Difference between Expected and Actual Experience 337 337 Contributions from Employer 14,317 (14,317)
Contributions from Employees 2,745 (2,745)
Net Investment Income 74,381 (74,381)
Benefit Payments, including Refunds of Employee Contributions (26,689)
(26,689)
Administrative Expenses (3311 331 Net Changes during 2020-2021 14,386 64423 (50,0371 Balance at June 30, 2021 (MD) 490,968 $
395,920 $
95,048 CITY OF ANAHEIM Total Plan Net Pension Pension Fiduciary Liability/
Liability Net Position (Asset)
Combined Total:
{al
{bl
{cl = /al - {bl Balance at June 30, 2020 (VD)
$ 2,868,095 $ 2,033,249 $
834,846 Changes recognized for the Measurement Period:
Service Cost 49,306 49,306 Interest on the Total Pension Liability 200,824 200,824 Difference between Expected and Actual Experience (7,552)
(7,552)
Contribution from the Employer 92,499 (92,499)
Contributions from Employees 17,859 (17,859)
Net Investment Income 458,991 (458,991)
Benefit Payments, including Refunds of Employee Contributions (152,931)
(152,931)
Administrative Expenses (2,0311 2 031 Net Changes during 2020-2021 89647 414,387 (324,7401 Balance at June 30, 2021 (MD)
$ 2,957,742 $ 2,447,636 $
510,106 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City's three Plans of the measurement date, calculated using the discount rate of 7.15%,
as well as what the net pension liability would be if it were calculated using a discount rate that is l percentage-point lower (6.15%} or l percentage-point higher (8.15%} than the current rate:
Discount Rate Discount Rate Discount Rate Plans' Net Pension Liability
- 1% (6.15%)
(7.15%)
+ 1% (8.15%)
Miscellaneous 457,064 $
257,230 $
91,632 Police Safety 277,351 157,828 59,480 Fire Safety 157,849 95,048 43,033 Combine total 892,264 $
510,106 $
194,145 Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued Cal PERS financial reports.
Pension Ex~enses and Deferred OutflowsLinflows 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, 2022, the City recognized pension expenses of $19,384 which included $2,468 from the Miscellaneous Plan, $10,045 from the Police Safety Plan, and $6,871 from the Fire Safety Plan.
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At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:
Miscellaneous Plan Pension contributions subsequent to measurement date Changes of Assumptions Difference between Expected and Actual Experiences Net difference between projected and actual earnings on plan investments Change in proportions Total Police Safety Plan Pension contributions subsequent to measurement date Changes of Assumptions Difference between Expected and Actual Experiences Net difference between projected and actual earnings on plan investments Total Fire Safety Plan Pension contributions subsequent to measurement date Changes of Assumptions Difference between Expected and Actual Experiences Net difference between projected and actual earnings on plan investments Total Deferred Outflows of Resources 51,639 174 $
6,281 58,094 $
Deferred Outflows of Resources 31,089 3,155 $
34,244 $
Deferred Outflows of Resources 15,990 5,079 21,069 $
Deferred Inflows of Resources 9,545 122,471 6,281 138,297 Deferred Inflows of Resources 453 69,110 69,563 Deferred Inflows of Resources 239 36,851 37,090 CITY OF ANAHEIM Deferred Deferred Outflows of Inflows of Combined Total Resources Resources Pension contributions subsequent to measurement date 98,718 Changes of Assumptions 239 Difference between Expected and Actual Experiences 8,408 9,998 Net difference between projected and actual earnings on plan investments 228,432 Change in proportions 6,281 6,281 Total 113,407 $
244,950 The combined total $98,718 ($51,639 from the Miscellaneous Plan,
$31,089 from the Police Safety Plan and $15,990 from Fire Safety Plan) reported as deferred outflows of resources related to contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the next fiscal year. Other amount reported in deferred outflow of resources and inflows of resources related to pensions will be recognized as a component in pension expense (benefit) as follows:
Police Fire Fiscal year Miscellaneous Safety Safety Ended 6/30 Plan Plan Plan Total 2023 (35,815) $
(16,032) $
(7,247) $
(59,094) 2024 (32,220)
(15,419)
(6,678)
(54,317) 2025 (30,024)
(15,870)
(7,906)
(53,800) 2026 (33,783)
(19,087)
(10,180)
(63,050)
(131,842) $
(66,408) $
(32,011) $
(230,261)
Payable to the Pension Plans AtJune30, 2022, the City reported a payable of $1,211 for the outstanding amount of contributions to the pension plan required for the fiscal year ended June 30, 2022.
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NOTE 14 - OTHER POSTEMPLOVMENT BENEFITS Plan Description The City pr9vides 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 Cal PERS. 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 Date of City Contribution Groue Hire Eligibilitt Reguirement Formulas1 Management, Before Age 50 with 10 years of 1.5 multiplied by Council -
1/1/1996 continuous full time City Miscellaneous 2%@
Unrepresented services; must have been 60 PERS retireme'nt Anaheim awarded a retirement schedule based on Municipal from PERS as the reason employee's age at Employee for separation from City retirement & City Associations service service accrued (AMEA) through 12/31/2005 Police Safety Before Age 50 with 10 years of 1.2 multiplied by 2% @
7/6/2001 continuous full time City 50 Safety PERS based services; must have been on the employee's awarded a-retirement age and years of City from PERS as the reason service at the time of for separation from City retirement service Fire Safety Before Age 50 with 10 years of 1.2 multiplied by 2%@
11/9/2001 continuous full time City 50 Safety PERS based services; must have been on the employee's awarded a retirement age and years of City from PERS as the reason service at the time of for separation from City retirement service 1 The maximum City contribution for the retiree's OPES is 95% of the annual contribution amount for active employees CITY OF ANAHEIM Regular full time employees hired after the dates above have access to the City's medical and dental plans but do not receive a defined benefit.
Benefits provided The City provides healthcare, dental and vision benefits for retirees and their dependents. Benefits are provided through payment of insurance premiums.
Additionally, full time employees who retire from the City at age 50 or older with 5 years of City service receive life insurance benefits. Retirees receive a paid-up life insurance policy at retirement. The City pays the full cost of the life insurance coverage.
Employees Covered At the June 30, 2021 actuarial valuation, the following employees were covered by the benefit terms of the OPEB Plan:
Inactive employees or beneficiaries currently receiving benefit payments Inactive employees entitled to but not yet receiving benefit payments Active employees Total Contributions 1,331 106 1789 3.226 The contribution requirements of plan members and the City are established in accordance with City Personnel Resolutions, Council Resolution and various Memoranda of Understanding. The retired plan members receiving benefits make varying contributions toward the cost of these benefits. The City contributes an amount not less than the annual Actuarially Determined Contribution (ADC) measured in accordance with the parameters of GASB Statement No. 75. The ADC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortization of any unfunded actuarial liabilities over a closed 30-year period. The remaining amortization at June 30, 2022 is sixteen years.
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 direct payments for premiums and taxes (explicit subsidies) and indirect payments to retirees in the form of higher premiums for active employees (implicit subsidies).
For the fiscal year ended June 30, 2022, the City contributed $16,065 to the OPEB plan, which is $1,542 in excess of the $14,523 ADC. This amount included insurance premiums of $18,156, implicit subsidy of
$3,197, offsetting retiree contributions of $5,288.
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Net OPEB Liability The City's OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.
Actuarial assumptions:
A summary of principal assumptions and methods used to determine the net OPEB liability is shown below.
Valuation Date {VD)
Measurement Date
{MD)
Measurement Period Reporting Date {RD)
Actuarial Cost Method Asset Valuation Method Actuarial Assumptions:
June 30, 2021 June 30, 2021 July l, 2020 to June 30, 2021 June 30, 2022 Entry Age Normal Cost, level percent of pay Fair Value of Assets Long Term Return 6.00% net of plan investment expenses and including on Assets inflation Discount Rate 6.00% net of plan investment expenses and including inflation General Inflation 2.50% per year Rate Salary Increase 3.00% per year; since benefits do not depend on salary, this is used to allocate the cost of benefits between service years.
Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation.
Participation Rates Active employees expected to qualify for explicit City benefits in retirement: 90% of future retirees are assumed to elect coverage through the City in retirement; Active employees not eligible for explicit City benefits in retirement: 50% are assumed to continue their current medical plan elections in retirement.
Current retirees: All currently participating retirees are assumed to continue their existing medical and dental plan elections for the remainder of their lifetime. 35%
of retirees under age 70 and eligible for benefits but currently waiving coverage are assumed to rejoin the plan. Retirees age 70 and older waiving coverage and eligible for coverage are assumed never to enroll.
Demographic CITY OF ANAHEIM Based on the 2017 experience study of the Cal PERS using data from 1997 to 2015, except for a different basis used to project future mortality improvements. The representative mortality rates were those published by CalPERS rates, adjusted to back out 15 years of Scale MP 2016 to central year 2015.
Mortality Improvement Healthcare Trend Macleod Watts Scale 2022 applied generationally from 2015.
Medical plan premiums and claims costs by age are assumed to increase once each year. Assumed to start at 5.8% in 2022 and grade down to 3.9% for year 2076 and later. This model was developed using the Getzen Model 2022-b published by the Society of Actuaries.
Dental premiums are assumed to increase by 3.5% per year.
Employer Cost Sharing Life Insurance Medicare Part B premiums {for a small closed group of retirees) are assumed to increase by 5% per year.
The City's contribution toward active employee's health coverage is assumed to increase by the general inflation rate {2.5%) plus 75% of the healthcare trend rate in excess of the general inflation rate.
Life insurance is valued by taking the present value of all future death benefits for future retirees, plus a "load" ofl0% to reflect insurance company expenses and profit. A 4% interest rate was used for determining the single premium value of life insurance at retirement.
Change of Assumptions The June 30, 2021 actuarial valuation has the following changes since the prior valuation:
Trust rate of return and discount rate Mortality Improvement Healthcare Trend Participation Rate Decreased from 6.70% to 6.00%, reflecting updated long-term rates of return projections on trust assets.
The mortality improvement scale was updated from Macleod Watts Scale 2020 to Macleod Watts Scale 2022.
Updated the base healthcare trend scale from Getzen Model 2019_b to Getzen Model 2021-b, as published by the Society of Actuaries.
Active employees: For those eligible for retiree coverage only
{no City paid premium), the participation rate was increased from 45% to 50%, following a review of recent retiree elections.
Retired employees waiving coverage: the re-enrollment rate for those retirees currently waiving coverage was changed {a) for retirees under age 70, from 50% to 35%, and {b) for retirees age 70 and older, from 25% to 0%. These changes were made following a review of recent retiree elections.
m
Medicare Eligibility Discount Rate Certain active employees and retirees have been identified as not eligible for Medicare enrollment based on City employment, though many eventually have qualified for coverage through a spouse or from other employment. For those under the age of 65 on the valuation date, the actuarial valuation increased the percentage assumed never to become eligible for Medicare from 20% to 40%, based on an analysis of recent experience.
The discount rate used to measure the total OPEB liability was 6.0%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
The expected long-term return on trust assets was derived from information published by CalPERS for CERBT Strategy 1.
CalPERS determined its returns using a building-block method and best-estimate ranges of expected future real rates of return for each major asset class (expected returns, net of OPEB plan investment expense and inflation).
Cal PERS' expected returns are split for years 1-5 and years 16-20.
To derive the single equivalent long-term expected return specific to the City's OPEB Plan, the actuarial valuation first adjusted CalPERS's future return expectations to align with the 2.5% general inflation assumption.
Then applying the plan specific benefit payments to Cal PERS' bifurcated return expectations. The City's OPEB Plan participates in CERBT portfolio investment Strategy 1. The target allocation and best estimates of geometric real rates of return published by Cal PERS for each major asset class of Strategy l are summarized in the following table:
Target Years Years Asset Class Allocation 1-5 6-20 Global Equity 49%
4.00%
4.50%
Fixed Income 23%
-1.00%
2.20%
Global Real Estate (REITs) 20%
3.00%
3.90%
Treasury Inflation Protected Securities 5%
-1.80%
1.30%
Commodities 3%
0.80%
1.20%
Cash
- General inflation rate assumption for Years 1-5 is 2.4% and for Years 6-20 is 2.3%
CITY OF ANAHEIM Recognition of Plan Changes and Gains and Losses Under GASB 75, gains and losses related to changes in Total OPEB Liability and Fiduciary Net Position are recognized in OPEB expense systematically over time.
Timing of recognition: Changes in the Total OPEB Liability relating to changes in plan benefits are recognized immediately (fully expensed) in the 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 amount are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expenses.
Difference between projected and actual earnings on investments All other amounts 5 year straight-line amortization Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. In determining the EARSL, all active, retired and inactive (vested) members are counted, with the latter two groups having O remaining service years.
111
Changes in the OPES Liability The following table shows the changes in the net OPEB liability of the City's Plan recognized over the measurement period.
Balance at 06/30/2020 Changes for the year:
Service cost Interest on Total OPEB Liability Expected investment income Changes of Assumptions Differences between Expected and Actual Experience Contributions - Employer Investment experience Benefit payments Trust administrative expense Net Change Balance at 06/30/2021 Increase (Decrease)
Plan Total OPEB Fiduciary Net Net OPEB Liabilities Position Liability
~
M
~-M 257,835 $
1,714 16,840 17,191 (45,405)
(16,393) 97,735 $
160,100 6,547 16,393 20,388 (16,393) 1,714 16,840 (6,547) 17,191 (45,405)
(16,393)
(20,388)
---~(~37~) ____
37_
(26,053) 26,898 (52,951) 231,782 $
124,633 =$==10=7=,1=49=
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPES liability of the City if it were calculated using a discount rate of 6.00% and the impact of l percentage-point lower (5.00%) or l percentage-point higher (7.00%)
than the current rate:
Net OPEB Liability 1% Decrease 500%
134,961 $
Discount Rate 600%
1% Increase 700%
107,149 $
84,005 Sensitivity of the Net OPES Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPES liability of the City if it were calculated using health care cost trend rates assumed to start at 5.8%
and grade down to 3.9% for years 2076 and thereafter. The impact of l percentage-point lower or l percentage point higher than the current rate, for measurement period ended June 30, 2021:
CITY OF ANAHEIM 1% Decrease Current Trend 1% Increase 4 80%
Rate 5.80%
6.80%
Net OPEB Liability 83,811 $
107,149 $
134,952 OPES Plan fiduciary net position Detailed information about the OPES Plan's fiduciary net position is available in the separately issued CERST annual financial report which may be obtained @www.calpers.ca.gov OPES Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPES expense of ($1,889). At June 30, 2022, the City reported deferred outflows of resources and deferred nflows of resources related to OPES from the following sources:
OPEB contributions subsequent to measurement date Changes of Assumptions Difference between Expected and Actual Experiences Net difference between projected and actual earnings on plan investments Deferred Outflows of Resources 16,065
_14,941 $
Deferred Inflows of Resources 3,920 47,784 14,239 Change in proportion
____,,3""'7'--4=1 -----=3=7---'4=1 Total 34,747==$====6==9=,6=8==4
$16,065 reported as deferred outflows of resources related to contribution made subsequent to measurement date will be recognized as a reduction in net OPES liability in the next fiscal year. Other amount reported as deferred outflows of resources and deferred inflows of resources related to OPES will be recognized as a component in OPES expense (benefit) as follows:
Fiscal Year Ended I une 30 2023 2024 2025 2026 2027 Thereafter Total (12,833)
(11,594)
(11,791)
(9,435)
(4,573)
(776)
(51,002) 11:
NOTE 15 - SECiMENT INFORMATION:
The Sanitation Utility Fund issued revenue bonds to finance sewer system expansion and improvements. The Sanitation Utility Fund accounts for three activities: solid waste collection, wastewater, and street cleaning.
However, investors in the revenue bonds rely solely on revenue generated through wastewater activities for repayment. Summary financial information for wastewater activities is presented below:
Condensed Statement of Net Position Assets Cash & cash equivalents Investments Other current assets Restricted cash & cash equivalents Restricted investments Capital assets, net Total assets Deferred outflows of resources Liabilities Current liabilities Long-term debt due within one year Current liabilities payable from restricted assets Long-term debt due within one year payable from restricted assets Long-term debt less current portion Other long-term liabilities Total liabilities Deferred inflows of resources Net Position Net investment in capital assets Restricted for debt services Restricted for capital projects Unrestricted Total net position 9,746 25,273 2,199 7,808 17,442 115 130 177 598 1,867 984 811 1,201 565 46,048 6,269 55,878 3,770 75,061 565 15,553 28638 119,817 CITY OF ANAHEIM Condensed Statement of Revenues, Expenses and Changes in Fund Net Position Waste water fees (pledged against bonds)
Other revenues Depreciation and amortization Other operating expenses Total operating Income Nonoperating income(expenses)
Investment loss Interest expense Capital contribution Transfer in Transfer out Total nonoperating expenses Change in net position Net position at beginning of year Net position at end of year Condensed Statement of Cash Flows Net cash provided (used for) by:
Operating activities Noncapital financing activities Capital and related financing activities Investing activities Net increase Beginning cash and cash equivalents Ending cash and cash equivalents Reconciliation of cash & cash equivalent Cash & cash equivalent Restricted cash & cash equivalent Total cash & cash equivalent NOTE 16 - DEFERRED COMPENSATION PLAN 15,225 533
{2,518)
(7,042) 6,198 (1,356)
(1,476)
. 177 128 (647)
(3,174) 3,024 116 793 119,817 7,387 (647)
{6,352)
(8,520)
{8,132) 25,686 17,554 9,746 7,808 17,554 City employees may participate (voluntarily) in the deferred compensation 457 Plan (Plan) offered by the City. Maximum contributions are as defined by law. The primary purpose of the 457 Plan is to provide retirement income and other deferred benefits to the employees and their beneficiaries in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986, as amended.
City contributions to the 457 Plan are limited to certain employment contracts. Per the Memorandum of Understanding between the Anaheim Firefighters Association and the City of Anaheim, the City shall make a contribution to the 457 deferred compensation plan account for each Association-represented employee with an active 457 deferred compensation plan account in the amount of thirty-eight dollars and forty six cents per bi-weekly pay period. The contribution was effective from June 28, 2019 and shall sunset on the last day of the last full pay
period in June 2022. For the fiscal year ended June 30, 2022, the City contributed $198.
All amounts of annual deferred, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held and invested in the Trust Fund for the exclusive benefit of participants and beneficiaries under the Plan. The Deferred Compensation Committee consisting of the Plan Administrator and City employees serve in the capacity ofTrustee. While the Trustee administers the Plan and makes selection of investment options available to the participants, decisions for investment choices are the responsibilities of Plan participants. Neither the City nor the Trustee shall be liable for any losses incurred by virtue of following a Plan participants' or beneficiary's directions regarding an investment option.
The accumulated assets of the Plan are not required to be reported in the accompanying basic financial statements.
NOTE 17 - RETIREMENT HEALTH SAVINCS PLAN AND TRUST The City has a Retirement Health Savings Plan and Trust (RHS) that is funded by a City contribution and an employee contribution. The RHS is an employer-sponsored health savings vehicle that allows for the accumulation of assets to pay for certain eligible medical expenses in retirement on a tax-free basis.
City employees, depending on the unit of representation, may be mandatorily required to participate in the RHS Plan. The mandatory salary contribution effective for the fiscal year ended June 30, 2022 was 0% - 1% of base salary for the City and 0% - 3% employee contribution based upon the employee group. The City's Deferred Compensation Committee also administers the RHS and makes selection of investment options available to the participants; but decisions for investment choices are the responsibilities of participants. Neither the City nor the Trustee shall be liable for any losses incurred by virtue of following a participants' or beneficiary's directions regarding an investment option.
Total employer contributions from the City amounted to $2,565 for the fiscal year ended on June 30, 2022. The accumulated assets of the RHS are not required to be reported in the accompanying basic financial statements.
NOTE 18 - JOINT VENTURES AND JOINTLY-OWNED PROPERTIES Authority for Orange County - City Hazardous Materials Emergency
Response
CITY OF ANAHEIM The City participates in joint powers authority (JPA), the Authority for Orange County-City Hazardous Materials Emergency Response (Hazmat), for the purposes of responding to, assessing the nature of, and stabilizing any emergency created by the release or threatened release of hazardous materials.
The following entities are members of Hazmat: City of Anaheim and City of Huntington Beach (provider agencies). Members of the Board of Directors (Hazmat Board) consists of one voting Board member and an alternate appointed by the governing body from the provider agencies. Under the Fifth Amendment to the JPA agreement, three representatives from the subscribing agencies are also voting Board Members. The following cities were subscribing agencies: Brea, Costa Mesa, Fountain Valley, Fullerton, Placentia, Newport Beach and Orange.
Public entities in Orange County may receive hazardous materials response services from the Hazmat by executing an agreement and paying a fair share contribution. Audited financial information for the joint powers authority as of and for the year ended June 30, 2022, was as follows:
Total assets Total liability Members' equity Total revenues Total expenses Change in net position Hazmat does not have any debt outstanding as of June 30, 2022.
370 30 340 69 102 (33)
The City has no significant equity interest in Hazmat, and accordingly neither assets nor liabilities of Hazmat have been recorded in the City's basic financial statements. For a copy of Hazmat's separate financial statements, contact the Finance Director of the City.
Metro Cities Fire Authority The City participates in a joint powers authority, Metro Cities Fire Authority (Fire Authority), for the purpose of providing a central communication network and record keeping system to support fire suppression, emergency 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 Huntington Beach, City of Newport Beach, and the City of Orange. Members of the Board of Directors (the "Board") consist of one voting Board member and an alternate appointed by their governing body.
11*
Public entities in Orange County may receive services from the Fire Authority by executing an agreement and paying a fair share contribution. Audited financial information for the Fire Authority as of and for the year ended June 30, 2022, was as follows:
Total assets Total liability Members' equity Total revenues Total expenses Change in net position 4,071 1,897 2,174 6,630 6,737 (107)
The City has no significant equity interest in the Fire Authority, and accordingly neither assets nor liabilities of the Fire Authority have been recorded in the City's basic financial statements. For a copy of the Fire Authority's separate financial statements, contact the Finance Director of the City.
North Net Joint Training Authority The City participates in a joint powers authority, North Net Training Authority (Authority), for the purpose of providing a joint use of a consolidated Training Center and record keeping system for fire training services.
The following entities are members of the North Net Training Authority:
City of Anaheim and City of Orange. Members of the Board of Directors (the "Board") consist of one voting Board member and an alternate appointed by their governing body.
Public entities in Orange County may receive training services from the Authority by executing a "subscription agreement" and by paying the annual fee and other costs. Audited financial information for the Authority as of and for the year ended June 30, 2022, was as follows:
Total assets Total liability Members' equity Total revenues Total expenses Change in net position SONGS 3,434 210 3,224 1,373 1,020 353 On December 29, 2006, The Electric Utility sold its 3.16% ownership interestofSONGStoSCE.Assuch, the Electric Utility ceased recording all related operating expenses, except marine mitigation costs, and spent fuel storage charges. Based on the SONGS settlement agreement, the Electric Utility is responsible for the City's share of marine mitigation costs up to $2,300, and SCE is responsible for costs approximately $2,300 CITY OF ANAHEIM to $7,300. The Electric Utility is responsible for spent fuel storage charges until the federal government takes possession. The Decommissioning Trust Fund will continue to pay for spent fuel storage charges.
As a former participant in SONGS, the Electric Utility is subject to assessment of retrospective insurance premiums in the event of a nuclear incident at SONGS or any other licensed reactor in the United States of America.
San Juan Generating Station On July 31, 2015, the Electric Utility and the other Parties involved with the San Juan Generating Plants, agreed to a plan for the closure of two of the four units. As co-owner of one of the units that is not being closed, on December 31, 2017, the Electric Utility relinquished its 10.04%
ownership interest in the existing coal-fired SJ, Unit 4, located near Waterflow, New Mexico to the parties that will continue in the Plant.
Other participants include Public Service of New Mexico, 45.485%; the City of Farmington, 8.475%; the County of Los Alamos, 7.200%; and M-S-R Public Power Agency, 28.800%. The Electric Utility's original purchase cost and cumulative share of ongoing construction costs included in the utility plant at December 31, 2017 amounted to $84,616. All capital assets related to the San Juan unit were fully depreciated and retired as of June 30, 2018. There are no separate financial statements for this venture, as each participant's interest is reflected in its respective financial statements. Refer to note l on page 69 Provision for decommissioning costs related to the decommissioning trust fund set-aside for the future decommissioning of the Plant.
NOTE 19 - COMMITMENTS AND CONTINGENCIES:
lntermountain Power Agency The Electric Utility has entered into a power purchase contract with the lntermountain Power Agency (IPA) for delivery of electric power.
The share of IPA power is equal to 13.225% of the generation output of IPA's two recently uprated coal-fueled generating units located in Delta, Utah (Unit l and 2 net output is 900 megawatts each). The City is obligated for the following percentage of electrical facilities at IPA:
Entitlement Expiration Generation:
lntermountain Power Project 13.23%
2027 The contract constitutes an obligation of the Electric Utility to make payments from revenues and requires payment of certain minimum charges. These minimum charges include debt service requirements on 11!
the financial obligations used to construct the plant. These requirements are considered a cost of purchased power.
Southern California Public Power Authority The Electric Utility is a member of the Southern California Public Power-Authority (SCPPA), a joint powers agency. SCPPA provides for the financing and construction of electric generating and transmission projects for participation by some or all of its members. To the extent the Electric Utility participates in projects developed by SCPPA, it is obligated for its proportional share of the cost of the project. The City is obligated for the following percentage of electrical facilities owned bySCPPA:
Transmission:
Souther Transmission System (STS)
Mead-Adelanto Project (MAP)
Mead-Phoenix Project (MPP)
Generation:
Magnolia Generating Station (Magnolia)
Canyon Power Project (Canyon)
Natural Gas Reserve Projects (Natural Gas)
SCPAA Natural Gas Project-Pinedale, Wyoming SCPPA Natural Gas Project-Barnett, Texas Take or pay commitments Entitlement Expiration 17.6%
2027 13.5 2030 24.2 2030 39.7 2037 100.0 2040 35.-7%
2033 45.5 2033 As part of the take or pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations. Payment for these obligations will be made from the operating revenues received during the year that the payment is due.
A long-term obligation has 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 due and payable by the Electric Utility for each project and the final maturity date.
In addition to take-or-pay commitments referenced above, the City's entitlement requires the payment for fuel costs, operations and maintenance (O&M), administration and general (A&G) and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service; however, prior experience indicates that annual costs are generally consistent from year to year.
CITY OF ANAHEIM Fiscal Year Natural Ending 6/30 IPA STS Magnolia Gas Canlon Total 2023 9,461 12,647 $
7.408 $
3,631 $
19,726 $
52,873 2024 (129) 5,780 7,476 3,364 19,733 36,224 2025 (152) 5,780 7,541 3,119 19,743 36,031 2026 5,780 7,612 2,894 19,750 36,036 2027 5,779 7,688 2,684 19,764 35,915 2028-2032 39,667 10,774 98,708 149,149 2033-2037 39,053 98,221 137,274 2038-2042 58,654 58,654 9,180 $
35,766 $ 116,445 $
26,466 $ 354,299 $ 542,156 The fiscal year 2022 expenses for fuel, O&M, A&G and other costs at these projects were as follows:
IPA STS MAP MPP Magnolia Natural Gas Canyon Total Cap-and-Trade Program Fiscal Year Ending 6/302022 38,036 5,201 390 146 35,093 614 22994 102.474 California Assembly Bill (AB) 32 requires that Utilities in California reduce their greenhouse gas (GHG) emissions to 1990 levels by the year 2020. It directed the California Air Resources Board (CARB) to develop regulations of GHG that became effective January 2012. Emission compliance obligations under the Cap-and-Trade regulation began in January 2013.
The Cap-and-Trade program (Program) was implemented beginning January l, 2013. This Program requires Electric Utilities to have GHG allowances on an annual basis to offset GHG emissions associated with generating electricity. CARB will provide a free allocation of GHG allowance to each electric utility to mitigate retail rate impacts. This free allocation of GHG allowance is expected to be sufficient to meet Electric Utility's GHG compliance obligations for retail sales. During this fiscal year, an unused portion of retail allowance was sold for $11,059 to reduce future renewable energy costs for retail customers. The compliance obligation for the wholesale sales requires allowance to be obtained through the auction or in the secondary market quarterly. At June 30, m
2022, the value of prepaid Cap and Trade allowance is $18,052 and the value of the Cap and Trade obligation is $5,517.
The Honda Center On January 26, 1999, the City entered into a series of lease transactions for the Honda Center. Subsequently on December 16, 2003, the City and Anaheim Arena Management LLC (AAM) entered into a Facility Management Agreement (FMA) whereby AAM has the exclusive right and license to manage, maintain and operate all aspects of the Honda Center in accordance with the FMA through June 30, 2023, with an option to extend the term for an additional period not to exceed 10 years.
In November 2018, an amendment was signed to extend the term of agreement from June 30, 2023 to June 30, 2048, with five 5-year extension options. Under the amendment, AAM assumed responsibility to provide 3,900 parking spaces for Honda Center, relieving the City of this long-term obligation. Annual distributions to the City, AAM and the County of Orange are required for their respective share of adjusted net revenues, as defined in the FMA. In the event that cash on hand is insufficient to pay operating expenses, debt service, distributions to the City, the County of Orange, or other amounts payable, AAM shall make or cause an affiliate or third-party lending institution to make loans for such purposes, as defined in the FMA. Such funds will be repaid from gross revenues or adjusted net revenues, if any, as defined in and in accordance with disbursement priorities established in the FMA. At June 30, 2022, the outstanding conduit debt on the Honda Center totaled $4,500. The debt is non-recourse, payable from revenues generated by the facility. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the debt. The debt is not a general or special obligation of the City, nor does it contain any credit enhancements that secondarily pledge existing or future resources of the City (other than revenues generated by the facility), and accordingly it is not reflected in the accompanying basic financial statements.
Angel Stadium of Anaheim On May 15, 1996, the City and the California Angels, LP (Team), which was then managed by Disney Sports Enterprises, Inc. (subsequently known as Anaheim Sports, Inc.), entered into an agreement to provide for the operation and refurbishment of the Stadium. Pursuant to the agreement, the Team assumed responsibility for the operation of the Stadium on October 1, 1996. The agreement runs for 33 years (subject to a limited Team option to cancel at 20 years and the Team's right to extend the term). In September 2013, the agreement was modified extending the Team's right to terminate the agreement by three years to October 16, 2019. In January 2019, an amendment was signed to extend the Team's CITY OF ANAHEIM right to terminate the agreement by fourteen months to December 31, 2020.
On December 19, 2019, the Anaheim City Council ratified a resolution approving the Purchase and Sale Agreement between the City and SRB Management Company, LLC (SRB) for the sale of approximatelyl53 acres of City-owned property generally located at 2000 E. Gene Autry Way and 2200 East Katella Avenue, including improvements commonly referred to as Angel Stadium of Anaheim, the City National Grove, and surrounding parking areas. Key transaction terms included a purchase price of $325 million, a commitment by the Angels to play home games in Anaheim through at least 2050, waiver of Angels Baseball's right to terminate the existing lease, $70 million in periodic deposits to be made by SRB and credited against the purchase price, and a milestone schedule for establishing development entitlements. On May 12, 2020, the City entered into a letter of understanding (LOU) with SRB extending the inspection deadline by ninety (90) days from June 30, 2020 to September 30, 2020, and accelerating the time required for making the third deposit.
On September 29, 2020, the City Council approved an amended and restated purchase and sale agreement with updated terms related to the purchase price, method of payment, closing schedule and conditions precedent for closing. The purchase price was reduced to $320 million to adjust for land that the City will retain for a fire station and for the City's retention of the adjacent municipal water utility building. SRB will pay the purchase price with $50 million in cash, due at closing, drawn from escrow deposits; construction of 466 affordable housing units for lower and very low income households (credited at $123.68 million); the construction and maintenance by SRB of a 7-acre public park (credited at $46.23 million); and five annual installments of the approximately
$100 million balance of the purchase price, with interest, with the first installment due the day after closing. The City Council also, by motion, approved the Angels Commitment Agreement between the City and Angels Baseball LP, memorializing Angels Baseball's commitment not to relocate and to play its home games at Angels Stadium of Anaheim (or its replacement) until at least December 31, 2050, with options to extend for an additional 25 years; and; approved the assignment and assumption of the Stadium Lease between the City and SRB, to assign the City's interest, as landlord, in the existing Stadium Lease between the City and Angeles Baseball to SRB upon closing of the sale of the project site.
On May 24, 2022, the members of the Anaheim City Council unanimously voted to halt the sale of Angel Stadium and the surrounding property to SRB, which was a management company led by Angels owner Arte Moreno and the Angels agreed to the City's request to cancel the sale.
lY
The May 14, 1996 Agreement also provided the City the right to develop approximately 42 acres of the parking lot development site. In 1998 a land sale of $1,000 for a 1.25 acre site was approved for the construction of a 1,100-seat theater called "Tinseltown Studios" (now known as "City National Grove of Anaheim"). In November 2002, the City purchased the facility and the land for $6,700 from its then owner, SMG. Concurrent with the purchase, the City granted to Nederlander-Grove LLC (Nederlander) a license to operate the facility for three years with the right to extend another five years. In May 2009, the management agreement was amended extending the term to December 31, 2015 with the right to extend another five year period. In June 2015, the option to extend was exercised, which extends the term to December 31, 2020. A fourth amendment extended the expiration date to December 31, 2022. In August 2022, a fifth amendment was approved that resulted in an expiration date of December 31. 2023 with an optional renewal that would result in an expiration date of December 31, 2024. Additionally, under the amended management agreement, effective January 1, 2009, Nederlander no longer receives a management fee of $150 and the City's share in the annual net profits and losses from operations increased from 50% to 60%. Nederlander is responsible for 100% of losses in excess of
$400, thereby limiting the City's share of net losses to a maximum of
$240 in any given year. The City may elect to terminate the agreement prior to expiration of the term under certain conditions, and pay the unamortized balance of capital assets purchased during the term to Nederlander. Concurrent with the amendment to the management agreement, the parking license fee agreement was amended, wherein the parking license fees from Nederlander were reduced to $176 and is subject to adjustment annually based on CPI increases. For the fiscal year ended June 30, 2022, Nederlander paid the City $229 for parking and common area maintenance.
Anaheim Regional Transportation lntermodal Center - ARTIC In December 2014, the City opened ARTIC, a transit hub in the Platinum Triangle, a growing and dynamic mixed use area, and within walking distance of both the Angel Stadium and the Honda Center. ARTIC serves as a transit hub for Orange County and the entire Southern California region with bus and rail services.
In January 2018, the City and AAM entered into negotiations to secure opportunities to create an entertainment district with the Platinum Triangle, keep the Anaheim Ducks in Anaheim, remove the City's $2.5 million general fund obligation from operating the ARTIC, and create opportunities to create and secure revenues and other economic benefits that could be realized through development of the under-utilized City land.
CITY OF ANAHEIM On November 20, 2018, the City Council approved the Facility Management Agreement to be effective on July 1, 2019, for the Anaheim Regional Transportation lntermodal Center (ARTIC), between the City as owner and ATCM, LLC (an affiliate of AAM and controlled by H&S Ventures, LLC)
("ATCM") as manager (the "ARTIC FMA"), as guaranteed by AAM pursuant to a Guaranty of Payment and Performance in favor of the City.
Under the terms of The Facility Management Agreement, ATCM assumes management of ARTIC through June 30, 2048, with the option to extend its management obligations for five five-year extension terms; ATCM will be responsible for all operating losses up to $2.5 million annually; AAM/
ATCM will advance all expenses of a sign "Spectacular" at ARTIC, with all proceeds applied to operating expenses; AAM fully guarantees ATCM performance; and City and ATCM share in net profits, 60% to City and 40%
to ATCM. For the fiscal year ended June 30, 2022, there was no revenue share distribution.
Muzeo In October 2007, the City and the former Redevelopment Agency entered into a property operating agreement (Agreement) with the Muzeo Foundation to operate and provide programming for the Muzeo, the downtown museum. The Agreement is for a term of 30 years and provides for a line of credit (LOC) for the first 3 years from the City to the Muzeo Foundation in an amount not to exceed $1,000 or 95% of pledges at an annual interest rate of 5%. The Agreement was amended on August 1, 2010, to extend the maturity date to June 30, 2015. It also amended the aggregate amount of the line of creditto $500 during fiscal year 2011 and
$200 during each fiscal year thereafter with amounts being converted to grants upon achieving fundraising thresholds. On June 30, 2014, the agreement was amended to extend the maturity date to June 30, 2019 and increased the line of credit amount from $200 to $250 annually.
In June 2019, The City and the Muzeo Foundation entered Amendment No.
4 to the Property Operating Agreement which includes the continuance of the annual LOC in the amount of $250 per annum for a term of five years expiring June 30, 2024. Additionally, the Muzeo Foundation is also granted a Capital Working LOC (CWLOC) for up to $150 each fiscal year.
For the fiscal year ended June 30, 2022, there was no fund drawn from theCWLOC.
Participation Agreement - Construction of Regional Animal Care Shelter On April 12, 2016 the City Council approved a Participation Agreement between the County of Orange and City of Anaheim for the construction of a new regional animal shelter at the former Tustin Air Base. Participants of this Participation Agreement are the County of Orange and fourteen 111
Orange County Cities. The Shelter will be a County public works project with a maximum construction amount of $35 million of which the County will fund $7.2 million and contribute the land at no cost. The remaining
$27.3 million of the maximum construction amount will be divided proportionately among the contract cities based on the percentage of actual shelter usage over the last five years. The City's proportionate share is 28.28% or $7.7 million for an estimated annual payment of $798 payable quarterly over 10 years starting with fiscal year 2017. During fiscal year 2022, the City paid $800 with an estimated committed balance of $3,088.
Homeless Shelters and Homeless Prevention On November 10, 2020, the City approved the First Amendment of the Agreement (Shelter Reimbursement) between the City and the Salvation Army for the continuation of the 224 beds shelter services at the Salvation Army homeless shelter located at 1455 South Salvation Place to 1) extend the funding termination date by two additional years from January 31, 2021 to January 31, 2023; and 2) approve a funding reimbursement amount of $11 million for the period from February 1, 2021 through January 31, 2023. The City paid $2,069 for the fiscal year ended June 30, 2022 an estimated committed balance of $6,794 (before crediting amount paid from the Agreement as described in the subsequent paragraph).
On April 22, 2020, the City entered an Agreement for the Homeless Shelter Expansion (Expansion Agreement) with the Salvation Army to obtain additional temporary shelter capacity. The City agreed to fully reimburse the Salvation Army up to $1,800 for its costs in constructing the Expansion with a minimum of 101 beds located in large trailers or similar structures with roof and four walls. The City completed the commitment of the construction payments in the prior fiscal year. Additionally, the City agreed to fully reimburse the Salvation Army for its costs actually incurred in operating the Expansion up to $1,726 annually. The term of the Agreement is two years beginning on the Commencement Date. For the fiscal year ended June 30, 2022, the City paid $629.
On June 20, 2019, the City entered into an Agreement with Illumination Foundation for the operation of an emergency homeless shelter (Shelter) located at 3035 East La Mesa Street. The Agreement commenced upon the effective date and continued for one year, and was extended for up to two additional one year periods. The City pays a fee of fifty-five dollars and thirty three cents ($55.33) per day for each person housed in the Shelter for a total contract agreement not to exceed $6,500. During fiscal year 2022, the City paid the $1,620 and completed the obligation of the commitment.
On December l, 2021, the City entered into an Agreement ("Agreement")
with the Salvation Army (Subrecipient) to passthrough $4,000 of the CITY OF ANAHEIM ESG grant that the City received from HUD for the purposes to prevent, prepare for, and respond to the COVID-19 among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homeless prevention activities to mitigate the impacts of COVID-19. The term is from the period from December l, 2021 through September 1, 2022. Per the Agreement, funds that the Subrecipient received from the City pursuant to the Agreement shall offset and serve as credit against City's obligation for the Shelter Reimbursement and/or Expansion Reimbursement Agreements, if any.
During fiscal year 2022, the City paid $3,500.
On December 15, 2020, the City entered into a CARES Emergency Solutions Grants Program Subrecipient Agreement with Kingdom Causes, Inc, doing business as City Net (Subrecipient), whereby the Subrecipient received federal funds ("ESG-CV Funds") for the operation of emergency solutions program for homeless individuals or families at risk of homelessess due to COVID-19 in the City of Anaheim. The Agreement is for one-year at an amount not to exceed $2,500. On December 21, 2021, the City and Subrecipient entered into a First Amendment to Agreement for an additional two year term effective January 1, 2022 and shall terminate on December 31, 2023 for an amount not to exceed $8,592, inclusive of the original agreement amount of $2,500. The City paid $2,284 during fiscal year 2022 with a committed balance of $4,918.
Litigation A number of claims and suits are pending against the City for alleged damages to persons and/or property and for other alleged liabilities arising out of matters usually incident to the operation of a city such as Anaheim. Although the aggregate amount asserted for such lawsuits and claims is significant, in the opinion of City management, the City has strong defenses against such claims, and thus the ultimate loss, if any, relating to these claims and suits not covered by insurance or reflected in the financial statements, will not materially affect the financial position of the City.
Crants Amounts received or receivable from grant agencies are subject to audit and adjustment by granter agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
11!
Construction and other significant commitments At June 30, 2022, the City had the following commitments with respect to unfinished capital projects, disposition and development agreements, reimbursement agreements and cooperation agreements:
Remaining Expected Construction Completion Cagital Projects Commitment Date Alley Sanitary Sewer Improvements 2,153 2022 Anaheim West Tower HVAC Rehabilitation 5,055 2023 Brookhurst Community Center-Teen Room Addition 615 2022 Direct Buried Cable Replacement Phase 14 3,147 2022 Electric Meters 5,490 2022 Euclid Street Rehabilitation 2,110 2022 Go 165 Underground Electric System Inspections 773 2023 Groundwater Treatment Plants Phase A 103,721 2023 Miscellaneous Water Vault Nos 26,33 And 55 Rehabilitation 687 2023 Neighborhood Improvements-Northeast Anaheim Colony (Sabina) 2,191 2022 Overhead Electric Reliability Improvement 10,874 2022 Portable Water Valve Replacement-Phase I 2,624 2022 Transformers 8,225 2022 Underground District No. 65 Phase I 1,667 2022 Underground District No. 65 Phase 2 Santa Ana Canyon Road 4,739 2022 Underground District No. 67 Sycamore Street 10,464 2023 Vehicle Acquisition 6,266 2022 Water Main Replacement - Dwyer Dr., Lincoln Ave & Dahlia Dr.
2,817 2022 Water Main Replacement - Felicidad St, Lemon St.,& Freedom Ave 2,824 2023 Water Main Replacement - Imperial Highway &
Big Sky Lane 1,586 2022 Water Main Replacement - La Palma Ave &
Tustin Ave 2,658 2023 Water Main Replacement - Rural Ridge Cir And Wilshire Ave 2,227 2022 Water Main Replacement - Shady Lane, Olive St
& Country Hill Rd 1602 2022 184,515 NOTE 20 - SUBSEQUENT EVENTS On July 6, 2022, the Electric Utility issued Anaheim Housing and Public Improvements Authority Revenue Refunding Bonds, Series 2022-E (Electric Utility Distribution System Refunding}, in the principal CITY OF ANAHEIM amount of $34,095 and at a premium of $3,773. The bond proceeds, net of underwriter discount ($83) and cost of issuance ($57), together with the 2012-A Bond Reserve Fund of $8,816, and debt service fund of $1,560, totaled $48,104 was used to refund the remaining $47,200 outstanding principal balance of the 2012-A revenue bonds. The Electric Utility reduced the total debt service payment of the refunded bonds by $2,788 with a net present value saving of $2,129.
12
Required Supplementary Information Anaheim, California Reauired Suoolementarv Information
CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 (In thousands)
Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period:
2020-2021 2020-2021 2020-2021 2020-2021 2019-2020 2019-2020 2019-2020 2019-2020 TOTAL PENSION LIABILITY Service cost 24,229 17,747 7,330 49,306 24,446 17,304 6,933 48,683 Interest on the Total Pension Liability 106,426 60,990 33,408 200,824 103,706 58,403 32,429 194,538 Changes of Assumptions Difference Between Expected and Actual Experience (10,970) 3,081 337 (7,552)
(5,084)
(930) 6,423 409 Benefit Payments, including Refunds of Employee Contributions
[81,651}
[44,591}
{26,689}
[152,931}
{76,418}
[41,047}
{25,727}
[143,192}
Net Change in Total Pension Liability 38,034 37,227 14,386 89,647 46,650 33,730 20,058 100,438 Total Pension Liability - Beginning 1,528,159 863,354 476 582 2,868,095 1,481,509 829,624 456 524 2,767,657 Total Pension Liability - Ending (a) 1,566,193 900,581 490,968
$ 2,957,742 1,528,159 863,354 476,582
$ 2,868,095 PLAN FIDUCIARY NET POSITION Contributions - Employer 49,044 29,138 14,317 92,499 46,238 26,639 13,174 86,051 Contributions - Employees 9,589 5,525 2,745 17,859 9,878 5,398 2,589 17,865 Net Investment Income 245,656 138,954 74,381 458,991 52,399 29,601 15,959 97,959 Benefit Payments, including Refunds of Employee Contributions (81,651)
(44,591)
(26,689)
(152,931)
(76,418)
(41,047)
(25,727)
(143,192)
Plan to Plan Resource Movement Administration Expense (1,086)
(614)
(331)
(2,031)
(1,490)
(838)
(460)
(2,788)
Other Miscellaneous Income (Expense)
Net Change in Fiduciary Net Position 221,552 128,412 64,423 414,387 30,607 19,753 5,535 55,895 Plan Fiduciary Net Position - Beginning2 1,087,411 614,341 331,497 2,033,249 1,056,804 594,588 325,962 1,977,354 Plan Fiduciary Net Position - Ending (b) 1,308,963 742 753 395,920 2,447,636 1,087,411 614 341 331497 2,033,249 Plan Net Pension Liability (Asset) - Ending (a) - (b) 257,230 157,828 95,048 510,106 440,748 249,013 145,085 i
834,846 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 83.58%
82.47%
80.64%
82.75%
71.16%
71.16%
69.56%
70.89%
Covered Payroll3 128,129 54,707 26,771 209,607 127,786 52,999 25,092 205,877 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 200.76%
288.50%
355.04%
243.36%
344.91%
469.84%
578.21%
405.51%
Notes:
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 any beginning of year adjustment 3lncludes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
(Continued) 12
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 (In thousands) (continued)
Measurement Period:
Miscellaneous 2018-2019 Police Safety 2018-2019 Fire Safety 2018-2019 Total 2018-2019 Miscellaneous 2017-2018 Police Safety 2017-2018 TOTAL PENSION LIABILITY Service cost Interest on the Total Pension Liability Changes of Assumptions2 Difference Between Expected and Actual Experience Benefit Payments, including Refunds of Employee Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, including Refunds of Employee Contributions Plan to Plan Resource Movement Administrative Expense Other Miscellaneous Income (Expense)3 Net Change in Fiduciary Net Position Plan Fiduciary Net Position - Beginning4 Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability (Asset) - Ending (a) -
~
Plan Fiduciary Net Position as a percentage of the Total Pension Liability Covered Payroll5 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll Notes:
23,998 100,471 2,789
{72.294) 54,964 1.426.545 1.481.509 40,546 9,653 66,398 (72,294)
(723) 1 43,581 1,013.223 1.056,804 424.705 71.33%
123,499 343.89%
17,241 56,054 3,458
{38,058) 38,695 790 929 829.624 23,375 5,003 37,234 (38,058)
(405) 1 27,150 567 438 594.588 235,036 71.67%
52,491 447.76%
6,617 31,074 3,076
{24.915) 15,852 440672 456.524 11,654 2,436 20,553 (24,915)
(226) 1 9,503 316 459 325.962 130,562 71.40%
23,383 558.36%
47,856 187,599 9,323
{135,267) 109,511 2.658.146 2.767.657 75,575 17,092 124,185 (135,267)
(1,354) 3 80,234 1,897.120 1.977.354 790,303 71.45%
199,373 396.39%
24,265 96,660 (7,462)
(3,467)
{68,285) 41,711 1.384.834 1.426.545 35,753 9,985 80,859 (68,285)
(2)
(1,495)
{2,839) 53,976 959 247 1,013.223 413,322 71.03%
124,068 333.14%
1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available 16,628 53,413 (3,208)
(2,322)
{35,675) 28,836 762,093 790.929 20,412 4,869 45,025 (35,675)
(1)
(834)
{1.584) 32,212 535.226 567 438 223.491 71.74%
50,771 440.19%
CITY OF ANAHEIM Fire Safety 2017-2018 6,625 29,971 (1,830) 1,245 Total 2017-2018 47,518 180,044 (12,500)
(4,544)
{23,587)
{127,547) 12,424 82,971 428 248 2.575.175 440,672
=$--'2=,6=5=8=,1~4=6-10,600 2,487 25,372 (23,587)
(1)
(472)
(897) 13,502 302 957 316 459 66,765 17,341 151,256 (127,547)
(4)
(2,801)
{5,320) 99,690 1797 430 1,897.120 124.213
$==7=6=1~.0=2=6
71.81%
23,214 535.08%
71.37%
198,053 384.25%
2 in 2018, demographic assumptions and inflation rate were changed in accordance with CalPERS experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
3 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement {GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), Cal PERS reported its proportionate share of activity related to postemployment benefits for participants in the State of California's agent OPEB plan. Accordingly, Cal PERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, Cal PERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, Cal PERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting Pension (GASBGB).
4 Includes any beginning of year adjustment 5 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
(Continued) 12
CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 (In thousands) (continued)
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 Assumptions2 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)
Other Miscellaneous Income (Expense)
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 - Beginning3 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 281742 1,657,005 Plan Net Pension Liability (Asset) -
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 Payroll4 120,653 48,294 22,688 191,635 111,398 46,479 21,600 179,477 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 352.74%
469.76%
552.23%
405.85%
324.79%
416.66%
520.13%
372.09%
Notes:
1 Historical information is required only for measurement periods for which GASS 68 is applicable, Additional years will be presented as they become available 2 In 2017, the discount rate was reduced from 7.65% to 7.15%.
3 Includes any beginning of year adjustment 4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
See accompanied independent auditors' report 12
CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 (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 Assumptions2 (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)
Other Miscellaneous Income (Expense)
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 - Beginning3 902,234 500,263 293,624 1,696,121 787 584 436424 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 (Asset) -
Ending (a) - (b) 326,226 148,397 93,813 568,436 308,420 149,727 87,651 545,798 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 73.36%
77.08%
75.53%
74.80%
74.52%
76.96%
77.01%
75.65%
Covered Payroll4 112,039 41,800 20,935 174,774 110,815 43,204 22,107 176,126 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 291.17%
355.02%
448.12%
325.24%
278.32%
346.56%
396.49%
309.89%
Notes:
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 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}.
3 Includes any beginning of year adjustment 4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
See accompanied independent auditors' report 12
CITY OF ANAHEIM Schedule of Pension Plan Contributions Last Ten Fiscal Years1 (In thousands)
Contributions in Relation to Contributions Actuarially the Actuarially Contribution as a Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Pension Plan Contribution2 Contribution
{Excess)
Pay:rolP Pay:roll 3 2021-2022 Miscellaneous 51,639 51,639 118,048 43.74%
Police Safety 31,089 31,089 54,358 57.19%
Fire Safety 15990 15990 28 395 56.31%
Total 98,718 98,718 200,801 49.16%
2020-2021 Miscellaneous 49,044 49,044 128,129 38.28%
Police Safety 29,138 29,138 54,707 53.26%
Fire Safety 14 317 14317 26771 53.48%
Total 92,499 92,499 209,607 44.13%
2019-2020 Miscellaneous 46,238 46,238 127,786 36.18%
Police Safety 26,639 26,639 52,999 50.26%
Fire Safety 13,174 13,1Z4 25,092 52.50%
Total 86,051 86,051 205,877 41.80%
2018-2019 Miscellaneous 40,546 40,546 123,499 32.83%
Police Safety 23,375 23,375 52,491 44.53%
Fire Safety 11654 11654 23 383 49.84%
Total 75,575 75,575 199,373 37.91%
2017-2018 Miscellaneous 35,753 35,753 124,068 28.82%
Police Safety 20,412 20,412 50,771 40.20%
Fire Safety 10600 10 600 23 214 45.66%
Total 66,765 66,765 198,053 33.71%
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 9483 9483 21600 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 7622 7 622 20 935 36.41%
Total 47,660 47,660 174,774 27.27%
(Continued)
See accompanied independent auditors' report 12
Schedule of Pension Plan Contributions Last Ten Fiscal Years1 (In thousands)
Actuarially Determined Fiscal Year Pension Plan Contribution2 2013-2014 Miscellaneous 23,841 Police Safety 13,505 Fire Safety 7723 Total 45,069 Contributions in Relation to the Actuarially Contribution Determined Deficiency Contribution
{Excess) 23,841 13,505 7723 45,069 1 Historical information is required only for measurement periods for which GASS 68 is applicable. Additional years will be presented as they become available.
CITY OF ANAHEIM Contributions as a Percentage of Covered Covered Pa)lroll3 Pa)lroll 3 110,815 21.51%
43,204 31.26%
22107 34.93%
176,126 25.59%
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions toward their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year's payroll growth using 2.75% payroll assumption for fiscal year ended June 30, 2018-21; 3% payroll assumption for fiscal years ended June 30, 2014-2017.
Notes to Schedules of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal years 2021-22 and 2020-21 were derived from the June 30, 2019 and 2018 funding valuation reports respectively.
Actuarial Cost Method Amortization Method/
Period Asset Valuation Method Inflation Salary Increases Payroll Growth Investment Rate of Return Retirement Age Mortality Entry Age Normal For details, see June 30, 2018 Funding Valuation Report Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report 2.50%
Varies by Entry Age and Service 2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation The probabilities of Retirement are based on the 2017 Cal PERS Study for period from 1997 to 2015 The probabilities of Mortality are based on the 2017 Cal PERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-Retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
See accompanied independent auditors' report 12
CITY OF ANAHEIM Schedule of Changes in the Net Other OPEB Liability and Related Ratios Last Ten Fiscal Years1 (Amounts in Thousands)
Measurement Period:
2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 TOTAL OPEB LIABILITY Service cost 1,714 1,667 1,900 1,840 2,032 Interest on the Total OPEB Liability 16,840 16,741 19,577 19,229 19,550 Difference Between Expected and Actual Experience (45,405)
(15,626)
(14,382)
Changes of Assumptions 17,191 (7,583) 4,617 Benefit Payments, including Refunds of Employee Contributions (16,393)
(17,541)
(16,629)
(16,061)
(16,016)
Net Change in Total OPEB Liability (26,053) 867 (18,361) 5,008 (4,199)
Total OPEB Liability - Beginning 257,835 256,968 275,329 270,321 274,520 Total OPEB Liability - Ending (a) 231,782 257,835 256,968 275,329 270,321 PLAN FIDUCIARY NET POSITION Contributions - Employer 16,393 16,488 16,049 16,367 16,016 Net investment income 26,935 3,374 5,582 6,658 8,010 Benefit payments (16,393)
(17,541)
(16,629)
(16,061)
(16,016)
Administrative Expense (37)
(47)
(19)
(44)
(41)
Other Expense (111)
Net Change in Fiduciary Net Position 26,898 2,274 4,983 6,809 7,969 Plan Fiduciary Net Position - Beginning 97,735 95,461 90,478 83,669 75,700 Plan Fiduciary Net Position - Ending (b) 124,633 97,735 95,461 90,478 83,669 Plan Net OPEB Liability - Ending (a) - (b) 107,149 160,100 161,507 184,851 186,652 Plan Fiduciary Net Position as a percentage of the Total OPEB Liability 53.77%
37.91%
37.15%
32.86%
30.95%
Covered-Employee Payroll2 203,773 209,656 209,942 209,435 203,473 Plan Net OPEB Liability as a Percentage of Covered-Employee Payroll 52.58%
76.36%
76.93%
88.26%
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.
2 OPEB provided and contributions made by the City are not dependent on payroll.
See accompanied independent auditors' report 12
CITY OF ANAHEIM Schedule of OPEB Plan Contributions Last Ten Fiscal Years1 (In thousands)
Fiscal Year Actuarially Determined Contribution (ADC)
Contributions in relation to ADC Contribution deficiency (excess)
Covered-Employee Payroll2 Contributions as a Percentage of Covered-employee Payroll 2021-2022 14,523 16,065 (1,542) 211,176 7.61%
2020-2021 2019-2020 2018-2019 14,180 16,488 16,049 16,393 16,488 16,049 (2,213) 203,733 209,656 209,942 8.05%
7.86%
7.64%
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 OPEB provided and contribution to the OPEB plan by the City are not dependent on payroll.
Notes to Schedule:
2017-2018 2016-2017 16,367 15,937 16,367 16,016 (79) 209,435 203,473 7.82%
7.87%
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal years ending June 30, 2021, and 2022 were from the July l, 2019 Actuarial Valuation Report, for June 30, 2019 and 2020 were from the July l, 2017 Actuarial Valuation Report, and for Fiscal Year ending June 30, 2017 and 2018 were from the July l, 2015 Actuarial Valuation Report.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Amortization Method/Period Asset Valuation Method General Inflation Rate Salary Increase Long Term Return on Assets Healthcare Trend Retirement Age Mortality Improvement Entry Age Normal Close Group Level Dollar Basis.
Level % of Pay 15-year Smoothed value 2.5% for 2019-2021 and 2.75% for 2016-2021 3.0% for 2019-2021 and 3.25% for 2016-2021 6.0% for 2021, 6.7% for 2019-2020 and 7.28% for 2016-2019 Assumed to start at 6.5 in January 2021, fluctuating down to 4.0% per year for year 2076 & thereafter From SO to 75 McCleod Watts Scale 2020 applied generationally for 2019-2021 and 2015 for prior years See accompanied independent auditors' report 13
Nonmajor Governmental Funds
<i!Hf/ll/
Anaheim, California Nonmaior Governmental Funds
Nonmajor Governmental Funds SPECIAL REVENUE FUNDS are used to account for revenues derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
GAS TAX FUND-Established to account for the construction and maintenance of the road network system of the City. Financing is provided primarily by the City's share of State and local gasoline taxes.
Federal, State, and local regulations require that these gasoline taxes be used to improve and maintain streets, and includes programs intended to improve the air quality of the region.
WORKFORCE DEVELOPMENT FUND-Established to account for the City's involvement in Federal, State, and local programs to create jobs and provide the unemployed citizens in the Anaheim area with job training opportunities.
COMMUNITY DEVELOPMENT BLOCK GRANT FUND-Established to account for financing of the development of viable urban communities through the provision of decent housing, suitable living environments and economic opportunity, principally for persons of low and moderate income. Financing is provided by the Federal Housing and Urban Development (HUD) grants.
GRANTS FUND-Established to account for various grants requiring segregated fund accounting. Financing is provided by Federal, State, and local agencies.
ANAHEIM RESORT MAINTENANCE DISTRICT FUND-Established to account for the levy and collection of special assessments to pay the cost of annual maintenance and improvements within the district against those parcels that specifically benefit from the enhanced maintenance and improvement.
ANAHEIM TOURISM IMPROVEMENT DISTRICT FUND-Established to account for the collection of a special assessment supporting marketing, promotion and transit project costs in support of the City's tourism and convention industry.
NARCOTIC ASSET FORFEITURE FUND-Established to account for funds received from Federal and State agencies that are derived from monies and property seized by the Police Department in drug related incidents. These funds are used to supplement existing resources of the City's law enforcement activities.
LONG RANGE PROPERTY MANAGEMENT PLAN FUND-Established to account for future development and property management activities of the assets that were transferred from the Successor Agency to the Former Anaheim Redevelopment Agency's approved Long Range Property Management Plan.
DEBT SERVICE FUND is used to account for the accumulation of resources and the payment of principal and interest on general debt of the City and related entities.
MUNICIPAL FACILITIES FUND-Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for the Fire Facilities and other various acquisitions and capital improvements.
ANAHEIM RESORT IMPROVEMENTS FUND-Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for the Anaheim Resort improvements.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the City, except for those financed by proprietary funds.
STREET CONSTRUCTION FUND-Established to account for transportation improvement construction in the City's right-of-way. Financing is provided primarily by Federal, State and local grants, and Measure M2 allocations by the County of Orange.
TRANSPORTATION IMPROVEMENT PROJECT FUND-Established to account for transportation improvement projects in the City. Financing is provided by Federal, State and local agencies.
DEVELOPMENT IMPACT PROJECTS FUND-Established to account for infrastructure improvements, primarily in the Platinum Triangle area, which provide development opportunities for high density, mixed use, office, restaurant, and residential projects. Financing is provided primarily by development impact fees.
COMMUNITY SERVICES FACILITIES FUND-Established to account for the development of new park sites, playgrounds and library facilities. Financing is provided by Federal and State grant programs, in conjunction with fees charged to residential and commercial developers. Much of this revenue is used to support the capital construction of parks and other recreational facilities throughout the City.
STORM DRAIN CONSTRUCTION FUND-Established to account for the City's storm drain construction. Financing is provided by drainage assessment fees charged to residential and commercial developers.
OTHER CAPITAL IMPROVEMENTS FUND-Established to account for various capital projects as determined by the City Council. Currently, financing for these projects is provided by bond proceeds and subsidies from the General Fund.
MELLO-ROOS PROJECTS FUND-Established to account for road, sewer and water improvements in the community facility districts. Financing is provided by the sale of special tax bonds that are secured by and payable from the proceeds of an annual special assessment on the properties within the district.
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Governmental Funds by Fund Type June 301 2022 (In thousands}
Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds ASSETS Cash and cash equivalents 20,121 $
345 $
20,509 40,975 Investments 51,665 894 53,184 105,743 Accounts receivable, net 2,489 2,489 Accrued interest receivable 316 55 276 647 Due from other funds 11,409 11,409 Due from other governments 11,007 13,564 24,571 Land held for resale 15,295 15,295 Prepaid and other assets 186 186 Restricted cash and cash equivalents 82 64,195 13,838 78,115 Restricted investments 56,719 23,146 79,865 Due from Successor Agency 3,295 1,705 5,000 Lease receivable 9,482 9,482 Notes receivable, net 16775 16775 Total assets 130,713 $
122,208 $
137 631 390,552 LIABILITIES Accounts payable 10,090 1,082 $
11,172 Wages payable 243 47 290 Deposits 273 1,200 1,473 Unearned revenues 22 1,834 1,856 Due to other funds 12 542 12 542 Total liabilities 10 628 16705 27 333 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 3,063 13,262 16,325 Unearned lease revenues 9,340 9,340 Unavailable resources-long-term notes receivable 20070 1705 21775 Total deferred inflows of resources 32473 H,96Z 47 440 FUND BALANCES Nonspendable prepaid and other assets 186 186 Restricted:
Anaheim Resort maintenance and improvement 6,441 6,441 Capital projects 3,811 3,811 Community and economic development projects 21,552 21,552 Debt service 120,970 120,970 Development impact projects 92,108 92,108 Grant purposes 8,973 8,973 Homebuyer assistance program 12,913 12,913 Streets, roads and transportation improvement projects 38,310 38,310 Committed for neighborhood and community projects 3,943 3,943 Assigned:
Debt service 1,238 1,238 Capital projects 18,305 18,305 Other purposes 98 98 Unassigned (861}
(12 208}
(13,069}
Total fund balances 87 612 122 208 105 959 315 779 Total liabilities, deferred inflows of resources, and fund balances 130,713 $
122,208 $
137,631 $
390,552 See accompanied independent auditors' report 13
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds by Fund Type Year Ended June 301 2022 (In thousands}
Nonmajor Nonmajor Total Special Nonmajor Capital Nonmajor Revenue Debt Service Projects Governmental Funds Funds Funds Funds Revenues:
Licenses, fees and permits 3
6,085 6,088 Intergovernmental revenues 49,814 2,139 51,953 Charges for services 27,141 205 27,346 Use of money and property 4,829 51 (19) 4,861 Lease revenues 433 433 Others 32 1
33 Contribution from property owners 1534 1534 Total revenues 82 252 51 9945 92248 Expenditures:
Current:
City Attorney 91 91 City Clerk 5
5 Finance 31 31 Police 4,375 29 4,404 Fire & Rescue 242 4
246 Housing & Community Development 11,245 10 11,255 Economic Development 5,945 35 5,980 Planning & Building 1,045 259 1,304 Public Works 11,080 1,186 12,266 Community Services 675 568 1,243 Convention, Sports and Entertainment 16,399 16,399 Capital outlay 15,004 3,195 18,199 Debt service:
Principal retirement 1,238 15,586 1,636 18,460 Interest charges 354 30544 200 31098 Total expenditures 6Z,693 46,161 Z,12Z 120,981 Excess (deficiency) of revenues over (under) expenditures 14559 (46,110) 2818 (28,733)
Other financing sources (uses):
Transfers in 927 87,109 14,301 102,337 Transfers out (10,278)
(1,508)
(11,786)
Issuance of refunding bonds 23,546 23,546 Payment to refunded bond escrow agent (23,348)
(23,348)
Bond issuance costs (198)
(198)
Total other financing sources {uses)
(9,351) 87109 12 793 90 551 Net change in fund balances 5,208 40,999 15,611 61,818 Fund balances at beginning of year 82404 81,209 90348 253,961 Fund balances at end of year 87,612 122,208 105,959 315,779 See accompanied independent auditors' report 13
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Special Revenue Funds June 301 2022 (In thousands}
Community Anaheim Anaheim Long Range Development Resort Tourism Narcotic Property Gas Workforce Block Maintenance Improvement Asset Management Tax Develo~ment Grant Grants District District Forfeiture Plan Total ASSETS Cash and cash equivalents 6,275 $
67 $
439 $
4,925 $
1,905 $
4,409 $
40 $
2,061 $
20,121 Investments 16,272 175 1,098 12,770 4,939 11,435 105 4,871 51,665 Accounts receivable, net 2
2,477 10 2,489 Accrued interest receivable 102 86 30 63 1
34 316 Notes receivable, net 2,062 14,713 16,775 Due from other governments 4,027 231 1,189 5,556 4
11,007 Prepaid and other assets 35 72 79 186 Land held for resale 15,295 15,295 Restricted cash and cash equivalents 82 82 Due from Successor Agency 3,295 3,295 Lease receivable 90 9392 9482 Total assets 26.711 $
565 $
8,083 $
38,122 $
6,878 $
18,384 $
228 $
31.742 $
130.713 LIABILITIES Accounts payable 2,403 $
261 $
911 $
1,558 $
420 $
4,120 417 $
10,090 Wages payable 109 25 36 47 17 2
7 243 Due to other Funds Unearned revenues 22 22 Deposits 273 273 Total liabilities 2 512 286 947 1605 437 4122 719 10 628 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 116 93 193 2,521 140 3,063 Unearned leases revenues 88 9,252 9,340 Unavailable resources-long-term notes &
loans receivable 5357 14 713 20070 Total deferred inflows of resources 116 181 5 550 17 234 9392 32473 FUND BALANCES Nonspendable prepaid and other assets 35 72 79 186 Restricted:
Anaheim Resort maintenance and improvement 6,441 6,441 Economic development projects 21,552 21,552 Grant purposes 1,586 7,159 228 8,973 Homebuyer assistance program 12,913 12,913 Streets, roads and transportation improvement projects 24,048 14,262 38,310 Assigned for other purposes 98 98 Unassigned
{861)
{861)
Total fund balances 24083 98 1,58§ 19283 6441 J.4,262 228 2J..63l, 87612 Total liabilities, deferred inflows of resources, and fund balances 26.711 565 8.083 38122 6,878 18.384 228 31.742 130 713 See accompanied independent auditors' report 13
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}
Long Community Anaheim Anaheim Range Development Resort Tourism Narcotic Property Gas Workforce Block Maintenance Improvement Asset Management Tax Develogment Grant Grants District District Forfeiture Plan Total Revenues:
Licenses, fees and permits 3
3 Intergovernmental revenues 23,060 $
2,752 $
4,630 $ 19,331 41 49,814 Charges for services 76 8 $
4,977 $
22,080 27,141 Use of money and property (619) 129 1,989 2,132 (205)
(430) 14 $
1,819 4,829 Lease revenues 111 322 433 Other 3
8 1
5 10 5
32 Total revenues 22,523 3000 6619 21472 4,777 21660 55 2,146 82,252 Expenditures:
Current:
City Attorney 91 91 Police 4,252 123 4,375 Fire & Rescue 14 228 242 Housing & Community Development 2,859 1,514 6,413 459 11,245 Economic Development 5,945 5,945 Planning & Building 1,043 2
1,045 Public Works 5,902 4,365 813 11,080 Community Services 527 148 675 Convention, Sports &
Entertainment 16,399 16,399 Capital outlay 12,939 28 768 161 428 680 15,004 Debt service:
Principal retirement 1,238 1,238 Interest charges 354 354 Total expenditures 18,841 2887 5 549 11,202 4,793 17894 123 6404 67,693 Excess (deficiency) of revenues over (under) expenditures 3,682 113 1070 10270 116) 3 766 168) 14,258) 14.559 Other financing sources (uses):
Transfers in 93 25 487 200 122 927 Transfers out 14000) 16,057) 1221) 110 278)
Total other financing sources (uses) 13.907) 25 15,570) 200 199) 19,351)
Net change in fund balances (225) 138 1,070 4.700 184 3.667 (68)
(4,258) 5,208 Fund balances(deficit) at beginning of year 24,308 140) 516 14.583 6 257 10 595 296 25,889 82404 Fund balances at end of year 24,083 $
98 $
1,586 $ 19.283 $
6,441 $
14.262 $
228 $
21,631 $
87.612 See accompanied independent auditors" report 13
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}
Gas Tax Workforce Develoement Final Actual on Final Actual on Budgeted Budgetary Variance with Budgeted Budgetary Variance with Amounts Basis Final Budget Amounts Basis Final Budget Revenues:
Licenses, fees and permits 7
3 $
(4)
Intergovernmental revenues 22,022 23,060 1,038 8,372 2,752 $
(5,620)
Charges for services 72 76 4
Use of money and property (619)
(619) 129 129 Lease revenues 111 111 Other 1
3 2
8 8
Total revenues 22,102 22,523 421 8,372 3,000 (5,372)
Expenditures:
City Attorney Police Fire & Rescue Housing & Community Development 8,855 2,887 (5,968)
Economic Development Planning & Building Public Works 36,595 24,867 (11,728)
Community Services Convention, Sports & Entertainment Total expenditures 36,595 24,867 (11,728) 8,855 2,887 (5,968)
Excess (deficiency) of revenues over (under) expenditures (14,493)
(2,344) 12,149 (483) 113 596 Other financing sources (uses):
Transfers in 66 93 27 523 25 (498)
Transfers out (4,000)
(4,000)
Total other financing sources (uses)
(3,934)
(3,907) 27 523 25 (498)
Net change in fund balances (18,427)
(6,251) 12,176 40 138 98 Fund balances at beginning of year 24,308 24,308 (40)
(40)
Fund balance at end of year 5,881 18,057 $
12,176 98 $
98 Adjustment to reconcile to GAAP:
Encumbrance 6,026 Ending fund balance - GAAP basis 24,083 98 (continued) 13
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Year Ended June 301 2022 (In thousands}
Communit}'. Develoement Block Grant Grants Final Actual on Final Actual on Budgeted Budgetary Variance with Budgeted Budgetary Variance with Amounts Basis Final Budget Amounts Basis Final Budget Revenues:
Intergovernmental revenues 9,870 $
4,630 $
(5,240) 45,107 19,331 (25,776)
Charges for services 8
8 Use of money and property 1,764 1,989 225 1,448 2,132 684 Other 1
1 Total revenues 11,634 6,619 (5,015) 46,555 21,472 (25,083)
Expenditures:
City Attorney 99 91 (8)
Police 13,168 4,405 (8,763)
Fire & Rescue 17 14 (3) 642 325 (317)
Housing & Community Development 9,255 3,819 (5,436) 24,526 6,413 (18,113)
Economic Development 499 69 (430)
Planning & Building 1,453 1,043 (410)
Public Works Community Services 827 1,160 333 410 148 (262)
Convention, Sports & Entertainment Total expenditures 12,150 6,196 (5,954}
38,746 11,291 (27,455)
Excess (deficiency) of revenues over (under) expenditures (516) 423 939 7,809 10,181 2,372 Other financing sources (uses):
Transfers in 487 487 Transfers out (13,171)
(6,057}
7,114 Total other financing sources (uses)
(13,171)
(5,570) 7,601 Net change in fund balances (516) 423 939 (5,362) 4,611 9,973 Fund balances at beginning of year 516 516 14,583 14,583 Fund balances at end of year 939 $
939 9,221 19,194 $
9,973 Adjustment to reconcile to GAAP:
Encumbrance 647 89 Ending fund balance - GAAP basis 1,586 19,283 (continued) 13
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Year Ended June 301 2022 (In thousands}
Anaheim Resort Maintenance District Anaheim Tourism lmerovement District Final Budgeted Actual on Variance with Final Budgeted Actual on Variance with Amounts Budgeta~ Basis Final Budget Amounts Budgeter}'. Basis Final Budget Revenues:
Charges for services 5,047 $
4,977 (70) 18,220 22,080 3,860 Use of money and property 106 (205)
(311) 200 (430)
(630)
Other 14 5
(9) 10 10 Total revenues 5,167 4,777 (390) 18,420 21,660 3,240 Expenditures:
Economic Development Planning & Building 2
2 Public Works 4,928 4,793 (135) 12,486 1,500 (10,986)
Convention, Sports & Entertainment 16,399 16,399 Total expenditures 4,928 4,793 (135) 28,887 17,901 (10,986)
Excess (deficiency) of revenues over (under) expenditures 239 (16)
(255)
(10,467) 3,759 14,226 Other financing sources (uses):
Transfers in 200 200 122 122 Transfers out (128)
(221)
(93)
Total other financing sources (uses) 200 200 (128)
(99) 29 Net change in fund balances 439 184 (255)
(10,595) 3,660 14,255 Fund balances at beginning of year 6,257 6,257 10,595 10,595 Fund balances at end of year 6,696 6,441
{255}
14,255 $
14,255 Adjustment to reconcile to GAAP basis:
Encumbrance 7
Ending fund balance - GAAP basis 6,441 14,262 (Continued)
See accompanied independent auditors' report 13
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}
Narcotic Asset Forfeiture Long Range Proeerty Management Plan Final Budgeted Actual on Variance with Final Budgeted Actual on Variance with Amounts Budgetary Basis Final Budget Amounts Budgetart Basis Final Budget Revenues:
Intergovernmental revenues 258 41 (217)
Use of money and property 8
14 6
1,919 1,819 (100)
Lease revenues 322 322 Other 5
5 Total revenues 266 55 (211) 2,241 2,146 (95)
Expenditures:
City Attorney Police 328 123 (205)
Fire & Rescue Housing & Community Development 459 459 Economic Development 9,661 5,951 (3,710)
Planning & Building Public Works Community Services Convention, Sports & Entertainment Total expenditures 328 123 (205) 10,120 6,410 (3,710)
Excess (deficiency) of revenues over (under) expenditures (62)
(68)
(6)
(7,879)
(4,264) 3,615 Other financing sources (uses):
Transfers in Transfers out Total other financing sources (uses)
Net change in fund balance (deficits)
(62)
(68)
(6)
(7,879)
(4,264) 3,615 Fund balances (deficits) at beginning of year 296 296 25,889 25,889 Fund balances at end of year 234 228
{6}
18,010 21,625 3,615 Adjustment to reconcile to GAAP basis:
Book value on the sale of land held for resale 6
Ending fund balance - GAAP basis 228 21,631 See accompanied independent auditors' report 14
Balance Sheet Nonmajor Debt Service Funds June 30, 2022 (In thousands)
ASSETS Cash and cash equivalents Investments Accrued interest receivable Restricted cash and cash equivalents Restricted investments Total assets Fund balances:
Nonspendable - prepaid and other assets Restricted for debt service Assigned for debt service Total fund balances Total liabilities and fund balances See accompanied independent auditors' report Municipal Facilities 345 894 8 $
2,341 3,576 7,164 $
5,926 $
1,238 7,164 7,164 $
CITY OF ANAHEIM Anaheim Resort Improvements 47 61,854 53,143 115,044 $
115,044 $
Total 345 894 55 64,195 56,719 122,208 120,970 1,238 115,044 122,208 115,044 =$====12=2=,2=0=8 14
CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Debt Service Funds Year Ended June 301 2022 (In thousands)
Anaheim Municipal Resort Facilities lmerovements Total Revenues:
Use of money and property (33) $
84 $
51 Total revenues (33) 84 51 Expenditures:
Current:
Finance 1
30 31 Debt service:
Principal retirement 559 15,027 15,586 Interest charges 2,596 27,948 30,544 Total expenditures 3,156 43,005 46,161 Deficiency of revenues under expenditures (3,189)
(42,921)
(46,110)
Other financing sources:
Transfers in 7,977 79,132 87,109 Transfers out Issuance of refunding bonds 23,546 23,546 Payment to refunding bonds escrow agent (23,348)
(23,348)
Bond issuance costs (198)
(198)
Total other financing sources 7,977 79,132 87,109 Net change in fund balances 4,788 36,211 40,999 Fund balances at beginning of year 2,376 78,833 81,209 Fund balances at end of year 7,164 $
115,044 $
122,208 See accompanied independent auditors' report 14
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Debt Service Funds Year Ended June 301 2022 (In thousands}
Municieal Facilities Anaheim Resort lmerovements Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:
Use of money and property (33) $
(33) 200 84 (116)
Total revenues (33)
(33) 200 84 (116)
Expenditures:
Finance 3,156 3,156 43,005 43,005 Total expenditures 3,156 3,156 43,005 43,005 Excess (deficiency) of revenues over (under) expenditures (3,156)
(3,189)
(33)
(42,805)
(42,921)
(116)
Other financing sources:
Transfers in 1,128 7,977 6,849 45,368 79,132 33,764 Transfers out Issuance of refunding bonds 23,546 23,546 Payments to refunding bond escrow agent (23,348)
(23,348)
Bond issuance costs (198)
(198)
Total other financing sources 1,128 7,977 6,849 45,368 79,132 33,764 Net change in fund balances (2,028) 4,788 6,816 2,563 36,211 33,648 Fund balances at beginning of year 2,376 2,376 78,833 78,833 Fund balances at end of year 348 $
7,164 $
6,816 81,396 115,044 33,648 See accompanied independent auditors' report 14
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Capital Projects Funds June 301 2022 (In thousands}
Transportation Development Community Storm Other Streets Improvement Impact Services Drain Capital Mello-Roos Construction Projects Projects Facilities Construction lmgrovements Projects Total ASSETS Cash and cash equivalents 255 $
15 $
7,794 $
3,228 $
806 $
5,569 $
2,842 $
20,509 Investments 659 38 20,213 8,372 2,088 14,443 7,371 53,184 Accounts receivable, net Accrued interest receivable 8
105 49 13 49 52 276 Due from other funds 8,059 3,350 11,409 Due from other governments 13,310 254 13,564 Restricted cash and cash equivalents 2,624 11,214 13,838 Restricted investment 23,146 23,146 Due from the Successor Agency 1705 1705 Total assets 14,232 $
307 $
36,171 $
11,649 $
2,907 $
27,740 $
44,625 $
137,631 LIABILITIES Accounts payable 209 $
11 $
106 $
353 $
192 $
183 $
28 $
1,082 Wages payable 22 8
5 3
9 47 Deposits 1,200 1,200 Unearned revenues 1,834 1,834 Due to other funds 11058 351 1133 12,542 Total liabilities 13,123 362 114 1491 1392 186 37 16705 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 13,008 254 13,262 Unavailable resources-long-term notes &
receivable 1705 1705 Total deferred inflows of resources 13,008 254 1705 14967 FUND BALANCES Restricted:
Capital projects 3,811 3,811 Development impact projects 36,057 9,948 1,515 44,588 92,108 Committed for neighborhood and community projects 3,943 3,943 Assigned for Capital projects 210 18,095 18,305 Unassigned (11,899}
(309}
(12,208}
Total fund balances (deficits)
(11,899}
(309}
36057 10158 1515 25849 44588 105,959 Total liabilities, deferred inflows of resources, and fund balances (deficits) 14,232 $
307 $
36,171 $
11,649 $
2,907 $
27,740 $
44,625 $
137,631 See accompanied independent auditors' report 14
CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Nonmajor Capital Projects Funds Year Ended June 301 2022 (In thousandsl Transportation Development Community Storm Other Streets Improvement Impact Services Drain Capital Mello-Roos Construction Projects Projects Facilities Construction lmerovements Projects Total Revenues:
Licenses, fees and permits 3,413 $
2,372 300 6,085 Intergovernmental revenues 2,084 55 2,139 Charges for services 205 205 Use of money and property 317 $
8 (1,018) 188 $
48 726 $
(288)
(19)
Other 1
1 Contribution from property owners 1534 1,534 Total revenues 2606 8
2 396 2615 48 1026 1246 9945 Expenditures:
Current:
City clerk 5
5 Police 29 29 Fire & Rescue 4
4 Housing & Community Development 10 10 Economic Development 35 35 Planning & Building 259 259 Public Works 792 68 217 2
85 22 1,186 Community Services 395 111 62 568 Capital outlay 976 820 467 353 579 3,195 Debt service:
Principal retirement 1,636 1,636 Interest charges 200 200 Total expenditures 1768 68 1465 578 2
2645 601 7127 Excess (deficiency) of revenues over (under) expenditures 838 (60) 931 2037 46 11,619) 645 2818 Other financing sources (uses):
Transfers in 248 14,053 14,301 Transfers out (128) 1122)
(7)
(1,251) 11,508)
Total other financing sources 248 (128) 1122)
(7) 14053 11,251) 12 793 Net change in fund balances 1,086 (188) 809 2,037 39 12,434 (606) 15,611 Fund balances (deficits) at beginning of year 112,985) 1121) 35 248 8121 1476 13415 45194 90348 Fund balances (deficits) at end of year 111,899) $
1309} $
36,057 $
10,158 $
1,515 $
25,849 $
44,588 $
105,959 See accompanied independent auditors' report 14
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 301 2022 (In thousands}
Streets Construction Transeortation lmerovement Projects Final Actual Variance Final Actual Variance Budgeted on Budgetary with Final Budgeted on Budgetary with Final Amounts Basis Budget Amounts Basis Budget Revenues:
Licenses, fees and permits Intergovernmental revenues 24,357 $
2,084 $
(22,273) 1,035 (1,035)
Charges for services 205 205 Use of money and property 317 317 8
8 Total revenues 24,357 2,606 (21,751) 1,035 8
(1,027)
Expenditures:
City clerk Finance Police Fire & Rescue Housing & Community Development Economic Development Planning & Building Public Works 9,521 1,778 (7,743) 754 68 (686)
Community Services Total expenditures 9,521 1,778 (7,743) 754 68 (686)
Excess (deficiency) of revenues over (under) expenditures 14,836 828 (14,008) 281 (60)
(341)
Other financing sources (uses):
Transfers in 248 248 Transfers out (128)
(128)
Total other financing sources 248 248 (128)
(128)
Net change in fund balances 14,836 1,076 (13,760) 281 (188)
(469)
Fund balances at beginning of year (12,985)
(12,985)
(121)
(121)
Fund balances at end of year 1,851 (11,909) $
(13,760) 160 (309) $
(469)
Adjustment to reconcile to GMP:
Encumbrance 10 Ending fund balance - GMP basis (11,899)
(309)
(continued) 14
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 301 2022 (In thousands}
Develo12ment lm12act Projects Communitll Services Facilities Final Actual Variance Final Actual Variance Budgeted on Budgetary with Final Budgeted on Budgetary with Final Amounts Basis Budget Amounts Basis Budget Revenues:
Licenses, fees and permits 3,360 $
3,413 $
53 800 $
1,916 $
1,116 Intergovernmental revenues 960 55 (905)
Charges for services Use of money and property 209 (1,018)
(1,227) 324 188 (136)
Other 1
1 Total revenues 3 569 2 396
{1,173) 2084 2159 75 Expenditures:
City clerk Finance Police 320 29 (291)
Fire & Rescue 1,569 126 (1,443)
Community & Economic Development Planning & Building Public Works 12,302 945 (11,357)
Community Services 1187 436 (751}
5,802 734 (5,068)
Total expenditures 15 378 1536 (13,842}
5,802 734
{5,068}
Excess (deficiency) of revenues over (under}
expenditures
{11,809}
860 12,669 (3,718) 1425 5143 Other financing sources (uses):
Transfers in Transfers out (122}
(122}
Total other financing sources (uses)
(122}
(122}
Net change in fund balances (11,809) 738 12,547 (3,718) 1,425 5,143 Fund balances at beginning of year 35248 35,248 8,121 8121 Fund balances at end of year 23,439 35,986 $
12,547 4,403 9,546 $
5,143 Adjustment to reconcile to GAAP:
Encumbrance 71 156 Park fee credit provided 456 Ending fund balance - GAAP basis 36,057 10,158 (continued) 14
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Budget and Budgetary Basis Actual - All Capital Projects Funds Vear Ended June 30, 2022 (In thousands)
Revenues:
Licenses, fees and permits Intergovernmental revenues Use of money and property Other Total revenues Expenditures:
City clerk Finance Police Fire & rescue Housing & Community Development Economic Development Planning & Building Public Works Community Services Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses):
Transfers in Transfers out Total other financing sources (uses)
Net change in fund balances Fund balances at beginning of year Fund balances at end of year Adjustment to reconcile to GAAP:
Encumbrance Ending fund balance - GAAP basis Storm Drain Construction Actual on Final Budgeted Budgetary Variance with Final Budget Amounts Basis 70 $
70 2
2 68 68 1,476 1,544 (continued}
48 $
48 2
2 46 (7)
(7) 39 1,476 (22)
(22)
(22)
(7)
(7)
(29) 1,515 =$===!:(2~9) 1,515 Other Capital Improvements Actual on Final Budgeted Budgetary Variance with Final Budget Amounts Basis 1,300 1,051 2,351 5
517 277 1,468 1,669 878 190 292 5,296 (2,945) 1,053 1,053 (1,892) 13,415 11,523 300 726 1,026 5
517 269 1,016 299 274 190 86 2,656 (1,630) 14,053 14,053 12,423 13,415 300 (1,300)
(325)
(1,325)
(8)
(452)
(1,370)
(604)
(206)
(2,640) 1,315 13,000 13,000 14,315 25,838
=$===1=4!:,3=1=5 11 25,849 14
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, 2022 (In thousands}
Revenues:
Licenses, fees and permits Intergovernmental revenues Charges for services Use of money and property Contribution from property owners Total revenues Expenditures:
City clerk Finance Police Fire & Rescue Housing & Community & Development Economic Development Planning & Building Public Works Community Services Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses):
Transfers in Transfers out Total other financing sources (uses)
Net change in fund balances Fund balances at beginning of year Fund balances at end of year Adjustment to reconcile to GAAP:
Encumbrance Ending fund balance - GAAP basis See accompanied independent auditors' report Mello-Roos Projects Final Budgeted Amounts 26,915 26,915 (26,915)
(26,915) 45,194 18,279 Actual on Budgetary Basis Variance with Final Budget (288) $
1,534 1,246 601 601 645 (1,251)
(1,251)
(606) 45,194 44,588 $
44,588 (288) 1,534 1,246 (26,314)
(26,314) 27,560 (1,251)
(1,251) 26,309 26,309 14
(This page was intentionally left blank) 15
Internal Service Funds Anaheim, California Internal Service Funds
Internal Service Funds INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City departments on a cost-reimbursement basis (including depreciation).
GENERAL BENEFITS AND INSURANCE FUND-Established to account for employee compensated absences, retirement and health benefits, and self-insurance programs.
MOTORIZED EQUIPMENT FUND-Established to account for motorized equipment used by City departments.
INFORMATION AND COMMUNICATION SERVICES FUND-Established to account for data processing and communication services to City departments.
MUNICIPAL FACILITIES MAINTENANCE FUND-Established to account for City building maintenance services and equipment used by City departments.
CITY OF ANAHEIM Combining Statement of Net Position Internal Service Funds June 30, 2022 (In thousands)
General Information and Municipal Benefits Motorized Communication Facilities and Insurance Egui!!ment Services Maintenance Total ASSETS Current assets:
Cash and cash equivalents 14,448 3,279 404 2,497 20,628 Investments 37,468 8,499 1,049 6,476 53,492 Accounts receivable, net 2,409 91 2,500 Accrued interest receivable 154 51 11 216 Inventories 1,332 250 1,582 Prepaid and other assets 20 21 1267 1308 Total current assets 54499 13 223 2220 9234 29 726 Noncurrent assets:
Restricted cash and cash equivalents 6,500 6,500 lnterfund receivable, less current portion 33,031 33,031 Capital assets:
Buildings, structures and improvements 3,230 8,079 11,309 Machinery and equipment 93 45,610 21,630 4,524 71,857 Rights to use leased equipment 2,683 2,683 Construction in progress 1,274 471 1,745 Less accumulated depreciation (84}
(33 280}
(16 763}
(7028)
(57 155!
Ca pita I assets, net 9
15 560 8824 6 046 30439 Total noncurrent assets 33040 15 560 15 324 6 04!i 69970 Total assets 87 539 28833 18044 15 280 149 696 DEFERRED OUTFLOW OF RESOUCES Deferred OPEB related items 558 535 349 675 2,117 Deferred pension related items 1977 1132 852 1307 5273 Total deferred outflow of resources 2 535 1 !i67 1206 1982 7390 LIABILITIES Current liabilities:
Accounts payable 2,962 788 4,950 1,316 10,016 Wages payable 5,061 89 57 112 5,319 Interest payable 43 43 Due to other Funds 39 39 Lease payable 886 886 Compensated absences 17,495 17,495 Self-insurance liability 13,826 13,826 Long-term debts 11 1,240 1,251 Unearned revenues 2431 2431 Total current liabilities 41775 888 7176 1467 51306 Noncurrent liabilities:
Lease payable, less current portion 574 574 Compensated absences, less current portion 6,257 6,257 Self-insurance liability, less current portion 44,693 44,693 Long-term debts, less current portion 41 5,260 5,301 Net OPEB liability 1,463 1,606 970 1,641 5,680 Net pension liability 5725 4800 4303 5449 20272 Total noncurrent liabilities 58138 6447 11107 7090 82 782 Total liabilities 99913 7 335 18 283 8 557 1340!l8 DEFERRED INFLOW OF RESOURCES Deferred OPEB related items 1,028 1,397 798 1,232 4,455 Deferred pension related items 3121 2623 2 325 2 797 10866 Total deferred inflow of resources 4149 4020 3123 4029 15 321 NET POSITION Net investment in capital assets 9
15,454 7,142 5,790 28,395 Unrestricted, (13 997) 3 691 (9298}
(1114)
(20,718}
Total net position (13,988} $
19,145
{2,156) $
4,676 7,677 See accompanied independent auditors' report 15
CITY OF ANAHEIM Combining Statement of Revenues, Expenses and Changes in Net Position (deficits}
Internal Service Funds Year Ended June 30, 2022 (In thousands)
General Information Benefits and Municipal and Motorized Communication Facilities Insurance Eguigment Services Maintenance Total Operating revenues:
Charges for services 97,990 12,500 26,925 16,868 154,283 Other 204 17 221 Total operating revenues 98,194 12,517 26,925 16,868 154,504 Operating expenses:
Salaries and wages 4,082 2,804 1,978 3,800 12,664 Maintenance and operations 3,988 6,832 21,148 10,053 42,021 Insurance premiums and claims 23,676 23,676 Compensated absences and other benefits 75,966 75,966 Depreciation 1
2,608 1,990 435 5,034 Total operating expenses 107,713 12,244 25,116 14,288 159,361 Operating income (loss)
(9,519) 273 1,809 2,580 (4,857)
Nonoperating income (expenses):
Investment income (1,655)
(337) 22 (78)
(2,048)
Interest expense (1)
(54)
(55)
Gain (loss) from disposal of capital assets 59 59 Total nonoperating income (loss)
(1,655)
(279)
(32)
(78)
(2,044)
Income (Loss)
(11,174)
(6) 1,777 2,502 (6,901)
Transfer in 5,740 5,740 Transfer out (28)
(28)
Change in net position (11,174)
(34) 1,777 8,242 (1,189)
Net position (deficits) at beginning of year, as restated (2,814) 19,179 (3,933)
(3,566) 8,866 Net position (deficits) at end of year (13,988} $
19,145 (2,156} $
4,676 7,677 See accompanied independent auditors' report 15
CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2022 (In thousands)
Information and Municipal General Benefits Motorized Communication Facilities and Insurance Eguii;iment Services Maintenance Total Cash flows from operating activities:
Receipts from interfund services provided 97,990 12,088 $
26,925 16,868 $
153,871 Payments to suppliers (2,091)
(5,844)
(17,262)
(9,177)
(34,374)
Payments for salaries and wages to employees (4,550)
(4,051)
(2,977)
(4,616)
(16,194)
Payments for interfund services used (1,876)
(961)
(1,190)
(1,040)
(5,067)
Payments for insurance premiums and claims (21,975)
(21,975)
Payments for compensated absences and other benefits (77,260)
(77,260)
Other receipts 204 434 638 Net cash provided by (used for) operating activities (9,558}
1666 5496 2 035 (361}
Cash flows from noncapital financing activities:
Receipt of interfund balances 22 22 Payment of interfund balances (310)
(47)
(357)
Transfer in (28)
(28)
Transfer out 5740 5 740 Net cash provided by (used for) noncapital financing activities 22 (28}
(310}
5693 5377 Cash flows from capital and related financing activities:
Proceeds from sale of capital assets 83 83 Capital purchases (923)
(3,073)
(215)
(4,211)
Proceeds from issuance of loan payable 6,500 6,500 Principal payments on long-term debt (11)
(11)
Principal payments on leases (1,223)
(1,223)
Interest payments (1}
{11}
(12}
Net cash provided by (used for) capital and related financing activities (852}
2193
{215}
1126 Cash flows from investing activities:
Purchase of investment securities (12,587)
(2,856)
(615)
(5,424)
(21,482)
Proceeds from sale and maturity of investment securities 20,017 2,336 22,353 Interest received 815 185 4
22 1026 Net cash provided by (used for) investing activities 8245 (335}
(611}
{5,402}
1897 Increase (decrease) in cash and cash equivalents (1,291) 451 6,768 2,111 8,039 Cash and cash equivalents at beginning of the year 15739 2828 136 386 19089 Cash and cash equivalents at end of the year 14,448 $
3,279 6,904 $
2,497 27,128 (continued) 15
Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2022 (In thousands) (continued)
General Benefits and Insurance Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss)
(9,519)
Adjustment to reconcile operating income to net cash provided by operating activities:
Depreciation 1
Changes in assets, deferred outflows of resources, liabilities and deferred inflows of resources:
Accounts receivable 1,932 Inventories Prepaid and other assets Accounts payable (856)
Wages and benefit payable (389)
Unearned revenues 126 Compensated absences (253)
Self-insurance liability (600)
Total adjustments (39)
Net cash provided by operating activities
{9,558}
Schedule of noncash financing and investing activities:
Capital assets financed through leases Increase (decrease) in fair value of investments (2,419)
Increase in accounts payable related to capital asset purchases Motorized Egui12ment 273 2,608 5
(304) 11 320 (1,247) 1,393 1,666 (522) 54 See accompanied independent auditors' report CITY OF ANAHEIM Information and Municipal Communication Facilities Services Maintenance Total 1,809 2,580 (4,857) 1,990 435 5,034 1,937 (16)
(320) 521 532 2,175 (148) 1,491 (999)
(816)
(3,451) 126 (253)
(600) 3,687 (545) 4,496 5,496 $
2,035
{361}
834 834 27 (109)
(3,023}
222 256 53_2 15
Fiduciary Funds Anaheim, California Fiduciarv Funds
Combining Statement of Fiduciary Net Position Custodial Funds - Others Year Ended June 30, 2022 (In thousands)
ASSETS Cash and cash equivalents Investments Special assessment receivable Total assets LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for individuals, organizations, and other governments Total net position See accompanied independent auditors' report Custodial Funds - Others Unclaimed Money CITY OF ANAHEIM Community Facility Districts Seized Miscellaneous Total 3,311 3,479 9
6,799 6
6 45 $
45 3,356 3,479 9
6,844 6
6 6,793 45 6,838 6,793 45 $
6,838
==================
15
Combining Statement of Changes in Fiduciary Net Position Custodial Funds - Others Year Ended June 30, 2022 (In thousands)
Community Facility Custodial - Others Unclaimed Bail Bond Districts Money Seized Deposits ADDITIONS Special assessment collections from Community Facility Districts Deposits Donation collections Miscellaneous receipts on behalf of inmates Interest and investment income Total additions DEDUCTIONS Debt service payments for Community Facility Districts Payments Payments - Charity distributions Administration Total deductions Change in net position Net position at beginning of year, as adjusted Net position at end of year 3,218 10 3,228 3,023 1,534 63 4,620 (1,392) 8,185 6,793 See accompanied independent auditors' report 18 $
76 18 76 103 76 103 76 (85) 85 CITY OF ANAHEIM Miscellaneous Total 3,218 94 2
2 3
3 10 5
3,327 3,023 1,713 19 19 63 19 4,818 (14)
(1,491) 59 8,329 45 $
6,838 16
Statistical Section Anaheim, California Statistical Section
Statistical Section The STATISTICAL SECTION is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government. It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary information included in the Financial Section.
CITY OF ANAHEIM STATISTICAL INFORMATION
{Unaudited)
The Statistical Section is included to provide financial statement users with additional historical perspective, context, and detail for them to use in evaluating the information contained within the financial statements, notes to the financial statements, and required supplementary information with the goal of providing the user a better understanding of the City1s economic condition.
Contents Financial trends Page These schedules contain information to help the reader understand how the City's financial performance and well-being have changed over time.
164 Net Position by Component - Last Ten Fiscal Years 164 Changes in Net Position - Last Ten Fiscal Years 165 Governmental Activities Tax Revenues by Source - Last Ten Fiscal Years 167 Fund Balances of Governmental Funds - Last Ten Fiscal Years 168 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 169 Revenue capacity These schedules contain information to help the reader assess the City's most significant local revenue sources.
170 General Government Tax Revenues by Source - Last Ten Fiscal Years
- 170 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 171 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 172 Principal Property Tax Payers - Current Year and Nine Years Ago 173 Property Tax Levies and Collections - Last Ten Fiscal Years 174 Debt capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the 175 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 17S Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 176 Direct *and Overlapping Governmental Activities Debt - As of June 30, 2022 177 Legal Debt Margin - Last Ten Fiscal Years 178 Pledged-Revenue Coverage - Last Ten Fiscal Years 179 Demographic and economic information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
181 Demographic and Economic Statistics - Last Ten Fiscal Years Principal Employers - Current Year and Nine Years Ago Operating information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and Full-Time Equivalent City government Employees by Function/ Program - Last Ten Fiscal Years Operating Indicators by Function - Last Ten Fiscal Years Capital Assets Statistics by Function - Last Ten Fiscal Years Sources: Unless otherwise noted. the information in these schedules is derived from the annual comorehensive financial reoorts for the relevant vear.
181 182 183 183 184 186 16
CITY OF ANAHEIM Net Position by Component Last Ten Fiscal Years {In thousands)
(Accrual basis of accounting)
Oovernmental Activities Net investment in capital 2022 2021 2020 2019 Fiscal Year 2018 2017 2016 2015 2014 assets 1,147,895 $
1,138,182 $
1,112,914 $
1,040,595 $
1,008,489 $
974,071 $
968,473 $
894,651 $
1,016,259 $
Restricted Unrestricted 1 2 3 Total Governmental Activities Business-type Activities Net investment in capital assets Restricted Unrestricted 1 2 Total Business-type Activities Total Oovernment Net investment in capital assets Restricted Unrestricted Total Government 277,443 260,160 251,942 266,447 266,983 274,830 211,338 210,934 205,998 (553,852)
(720,573)
(629,091)
(554,529)
(551,607)
(557,245)
(417,976)
(447,817)
(455,863) 871,486 1,091,868 81,344 74,944 1,248,156 2,239,763 358,787 (478,908) 2,119,642 $
677,769 1,074,102 70,372 35,842 1,180,316 2,212,284 330,532 (684,731) 1,858,085 $
735,765 1,074,006 66,069 22,284 1,162,359 2,186,920 318,011 (606,807) 1,898,124 $
752,513 1,058,213 61,808 51,630 1,171,651 2,098,808 355,181 (529,825) 1,924,164 $
723,865 1,009,302 86,863 15,661 1,111,826 2,017,791 353,846 (535,946) 1,835,691 $
691,656 1,016,113 83,811 (26,767) 1,073,157 1,990,184 358,641 (584,012) 1,764,813 $
761,835 997,292 76,749 36,644 1,110,685 1,965,765 288,087 (381,332) 1,872,520 $
657,768 993,075 83,448 (1,725) 1,074,798 1,887,726 294,382 (449,542) 1,732,566 $
766,394 823,505 77,311 (37,696) 863,120 1,839,764 283,309 (493,559) 1,629,514 $
2013 894,625 196,853 30,341 1,121,819 787,459 71,131 121,083 979,673 1,682,084 267,984 151,424 2,101,492 Note:
l 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 required 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 Benefits Other Than Pension for the fiscal year ended June 30, 2018. Implementation of this Statements required 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.
3 The City implemented Governmental Accounting Standards Board (GASB) Statement No. 87 Accounting for Leases for the fiscal year ended June 30, 2022. Implementation of this Statements required the City to restate prior period net position and are reflected in the fiscal year 2021 Net Investment in capital assets and 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 See accompanied independent auditors' report 16
CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (In thousands)
(Accrual basis of accounting)
Fisca Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Program Revenues Governmental activities:
Charges for services General government 1,477 $
2,115 $
1,796 $
1,742 $
1,749 $
1,903 $
2,034 $
2,398 $
1,779 $
2,001 Police 13,279 9,040 13,595 15,901 15,361 15,441 11,775 10,001 9,927 9,859 Fire & Rescue 23,338 18,819 21,024 10,949 11,621 10,582 9,814 9,024 10,166 9,912 Housing & Community Development 2 13,033 14,625 6,796 5,441 5,438 17,171 9,295 13,796 17,144 9,002 Economic Development 2 2,867 3,003 3,110 2,090 1,983 1,875 915 227 161 149 Planning & Building 11,198 12,178 11,059 11,715 16,573 11,357 11,515 9,800 7,746 6,404 Public.Works 20,846 17,422 20,123 21,075 17,378 16,140 15,817 13,309 13,037 14,012 Community Services 3,153 1,573 2,491 3,174 3,227 11,190 3,430 3,408 3,479 3,556 Convention, Sports & Entertainment 16 560 2195 11075 14802 14 231 13 672 12 528 11124 10236 9 574 Total charges for services 105,751 80,970 91,069 86,889 87,561 99,331 77,123 73,087 73,675 64,469 Operating grants and contributions 247,271 226,525 158,750 130,335 115,520 109,989 108,131 109,968 114,584 112,507 Capital grants and contributions 30 090 36 376 43191 21335 39340 65 937 85782 67 014 110 295 71472 Governmental activities program revenues 383112 343 871 293 010 238 559 242 421 275 257 271 036 250 069 298 554 248448 Business-type activities:
Charges for services Electric Utility 448,286 433,734 417,912 459,182 443,755 433,561 430,485 453,697 426,051 451,958 Water Utility 102,239 96,351 84,943 79,649 79,074 70,777 60,509 63,495 65,946 60,785 Sanitation Utility 74,574 69,482 70,812 68,036 65,138 63,893 61,006 60,076 57,843 57,230 Golf Courses 10,709 6,978 4,282 4,306 4,273 4,062 4,114 4,435 4,667 4,759 Convention, Sports & Entertainment 32,253 4,371 35,909 51,072 44,984 37,015 35,363 34,742 32,084 29,656 ARTIC Management 39 41 1030 1343 1050 878 448 Total charges for services 668,061 610,955 613,899 663,275 638,567 610,358 592,355 616,893 586,591 604,388 Operating grants and contributions 603 88 143 231 88 425 776 287 452 952 Capital grants and contributions 31363 9751 12 339 28408 8353 4 381 11743 8734 8441 6698 Business-type activities program revenues 200022 620294 626 381 691 914 642008 615164 604 824 6;25 914 595484 612 038 Total government program revenues 1083 13!;!
964665 919 391 930 473 889 429 890 421 875 910 875 983 894038 860 486 Expenses Governmental activities:
General government 20,418 25,415 31,866 22,005 15,645 11,825 10,331 12,370 15,790 13,275 Police 147,972 182,509 202,064 175,409 173,921 151,559 132,889 135,161 127,037 124,556 Fire & Rescue 79,516 103,696 96,803 82,948 81,528 70,365 62,520 61,794 59,510 58,508 Housing & Community Development 2 149,709 122,411 104,153 87,443 90,475 95,472 90,081 79,492 78,789 80,923 Economic Development 2 3,806 5,928 6,659 11,375 5,592 5,248 20,537 1,484 1,254 1,846 Planning & Building 22,419 25,695 27,929 26,248 25,376 21,944 19,862 18,303 17,030 16,917 Public Works 56,366 60,664 60,693 53,742 55,981 61,806 48,719 66,023 60,262 44,740 Community Services 38,547 39,721 50,513 43,218 39,020 34,799 34,212 31,587 34,130 28,925 Public Utilities 2,075 2,171 2,381 2,476 2,346 2,530 2,687 2,599 2,514 2,405 Convention, Sports & Entertainment 23,879 8,071 17,713 27,663 19,930 19,238 18,503 17,026 15,586 13,935 Interest on long-term debt 33093 31527 29734 35149 34938 34876 35185 35340 35 514 35 880 Governmental Activities Expenses 577 800 607 808 630 508 567 676 544 752 509 662 475 526 461179 447 416 421910 (Continued) 16
Changes in Net Position Last Ten Fiscal Years (In thousands)
(Accrual basis of accountin9} (continued}
Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 Expenses Business-type Activities:
Electric Utility 389,898 378,087 404,272 425,072 394,574 412,424 390,732 401,243 Water Utility 95,407 96,920 88,554 76,484 75,755 72,715 61,620 68,011 Sanitation Utility 64,186 66,022 67,375 64,659 61,145 58,218 56,564 55,979 Golf Courses 8,432 6,046 5,017 4,954 4,898 4,465 4,405 4,418 Convention, Sports & Entertainment Venues 51,776 51,239 75,621 68,187 66,058 47,321 44,285 56,715 ARTIC Management 2 525 2548 2949 6548 6 218 6374 6235 5075 Business-type activities expense 612,224 600,862 643 788 645904 608 648 601517 563 841 591441 Total government expenses 1,190,024 1,208,670 1,274,296 1,213,580 1,153,400 1,111,179 1,039,367 1,052,620 Net {Expense)/Revenue Governmental activities (194,688)
(263,937)
(337,498)
(329,117)
(302,331)
(234,405)
(204,490)
(211,110)
Business-type activities 87 803 19932
{17,407) 46010 38360 13647 41033 34473 Total government, net (expense) revenue
{106,885)
{244,005)
{354,905)
{283,107)
{263,971)
{220,758)
{163,457)
{176,637)
General Revenues and Other Changes in Net Position Governmental activities:
Taxes:
Property taxes 94,554 90,222 86,256 80,822 76,547 72,909 70,646 68,405 Sales and use taxes 1 103,374 76,811 76,851 84,982 80,732 77,732 76,975 72,356 Transient occupancy taxes 1 177,057 29,797 122,735 161,948 154,925 149,566 137,570 119,744 Other taxes 9,592 8,902 8,796 8,893 9,076 8,946 8,731 8,318 Gain on sale on capital assets 6,258 Unrestricted investment earnings (9,228) 1,470 15,371 15,654 2,783 2,116 3,692 2,725 Other 762 100 98 105 106 87 55 Lease Revenues Transfers 13,056 4,270 10,641 5,368 4,114 7,701 10,856 (169,119)
Special item
{8,218)
Governmental activities 388405 212 234 320 750 357 765 334 540 310,858 308 557 102 484 Business-type activities:
Unrestricted investment earnings (losses)
(6,907) 2,295 18,756 19,183 4,423 4,001 5,710 8,086 Transfers
{13,056)
{4,270)
{10,641)
{5,368)
{4,114)
{7,701)
{10,856) 169 119 Business-type activities
{19,963)
{1,975}
8115 13 815 309
{3,700)
{5,146) 177 205 Total government 368442 210,259 328865 371580 334849 307 158 303 411 279 689 Change in Net Position Governmental activities 193,717 (51,703)
(16,748) 28,648 32,209 76,453 104,067 (108,626)
Business-type activities 67840 17 957
{9,292}
59825 38 669 9947 35887 211,678 Total government change in net position 1
261,557 $
(33,746) 1
{26,040) 1 88,473 $
70,878 1 86,400 i 139,954 $
103,052 1 Decreases in Sales and use taxes, and Transient Occupancy taxes in Fiscal Years 2020 and 2021 are due to impacts of COVID-19 Pandemic and California Stay-At-Home Order.
2 The previously Community & Economic development was re-organized to Housing & Community Development and Economic Department in fiscal year 2022.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report CITY OF ANAHEIM 2014 2013 411,246 417,008 62,996 57,056 53,508 52,813 4,399 4,473 46,385 45,001 578 534 576 351 1,025,950 998 261 (148,862)
(173,462) 16950 35687
{131,912)
{137,775) 66,282 64,311 67,505 65,445 110,134 102,936 7,780 7,756 2,930 1,094 49 1,857 7,288 12,824 261968 256,223 6,986 3,323
{7,288)
{12,824)
{302)
{9 501}
261666 246 722 113,106 82,761 16648 26186 129,754 $
108,947 16
Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (In thousands)
(Accrual basis of accounting)
Sales and Amounts Transient Fiscal Property Use Occupancy Year Taxes Taxes 2022 94,554 103,374 2021 90,222 76,811 2020 86,256 76,851 2019 80,822 84,982 2018 76,547 80,732 2017 72,909 77,732 2016 70,646 76,975 2015 68,405 72,356 2014 66,282 67,505 2013 64,311 65,445 Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Finance Department, City of Anaheim Taxes See accompanied independent auditors' report 177,057 29,797 122,735 161,948 154,925 149,566 137,570 119,744 110,134 102,936 CITY OF ANAHEIM Other Taxes Total 9,592 384,577 8,902 205,732 8,796 294,638 8,893 336,645 9,076 321,280 8,946 309,153 8,731 293,922 8,318 268,823 7,780 251,701 7,756 240,448 16
CITY OF ANAHEIM Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands)
(Modified accrual basis of accounting)
Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Cieneral Fund Nonspendable 601 402 $
308 756 519 819 958 1,538 $
2,099 $
2,531 Restricted 10,030 13,538 12,547 4,627 5,194 6,238 7,730 6,124 6,449 1,766 Committed 2,250 788 Assigned 1 114,039 104,212 6,752 15,221 11,008 2,056 7,442 513 4,073 6,879 Unassigned 52,351 17,975 10,954 43,455 41,556 42,336 39,850 39,615 30,394 26,920 Total General fund 177.021 136,127 32,811 64059 58 277 51449 55,980 47790 43 015 38,884 Housing Authority Fund Nonspendable 42 41 39 36 34 2
4 7
38 Restricted 44,143 51,320 48,285 61,641 60,180 62,338 48,974 43,703 41,134 32,234 Assigned 41,475 35,840 31,579 28,434 26,574 22,904 16,129 14,283 11,664 11,823 Total Housing Authority Fund 85,660 87,201 79903 90,111 86788 85.242 65.105 57990 52.805 44095 Nonmajor Ciovernmental Funds Nonspendable 186 155 252 11,503 9,091 8.713 6,000 6,270 3,542 4,619 Restricted 2 305,078 254,607 276,604 319,412 320,034 303,036 237,930 197,360 170,950 164,870 Committed 3,943 4,057 4,039 3,812 4,063 Assigned 19,641 8,288 7,475 6,696 6,797 9,612 5,875 3,040 3,291 8,055 Unassigned (13,069)
(13,146)
(15,080)
(9,217)
(11,535)
(12,202)
(17,991)
(20,071)
(19,005)
(11,231)
Total nonmajor governmental funds 315 779 253.961 273 290 332,206 328,450 309,159 231,814 186,599 158,778 166,313 Total governmental funds 578,460 $
477,289 $
386,004 $
486,376 $
473,515 $
445,850 $
352,899 $
292,379 $
254,598 $
249,292 1 Increase in assigned fund balance in Fiscal Year 2021 is due to unspent bond proceeds from the 2021 APFA Lease Revenue Bonds (Working Capital Financing) issued in June 2021.
2 Decrease in restricted fund balance in Fiscal Year 2020 is due to $59 million used for the partially defeasance of the 1996 APFA Series C Capital Appreciation Bonds.
Note: Certain reclassifications have been made to prior fiscal years data to conform to the current presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16
CITY OF ANAHEIM Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands)
(Modified accrual basis of accounting)
Fisca Year 2022 2021 202Q 2019 2018 2017 2016 2015 2014 2013 Revenues Property taxes 94,554 90,222 86,256 80,822 76,547 72,909 70,646 68,405 66,282 64,311 Sales and use taxes 3 103,421 76,907 76,898 84,792 81,680 80,500 81,844 71,977 68,581 62,793 Transient occupancy taxes 3 177,057 30,180 122,351 161,948 154,925 149,566 137,570 119,744 110,134 102,936 Other taxes 8,689 8,139 8,024 8,175 8,311 8,287 8,024 7.478 7,012 7,078 Licenses, fees, and permits 26,460 29,451 26,627 24,397 38,258 30,365 24,851 23,893 16,653 17,835 Intergovernmental revenues 4 252,796 234,891 167,085 139,776 124,696 123,797 121,055 155,314 215,755 186,018 Charges for services 60,109 35,199 50,927 51,308 50,771 48,186 41,949 37,975 37,269 35,353 Fines, forfeits, and penalties 3,257 3,096 2,658 2,937 2,988 2,756 2,875 2,823 2,656 2,907 Use of money and property 2 12,770 31,798 29,323 37,459 26,801 47,505 67,204 20,068 22,427 12,141 Contribution from property owners1 1,534 5,175 3,124 36,864 Lease revenues 1,195 Others 1379 2 029 1597 1086 1178 2127 1368 9738 809 4843 Total revenues 743 221 547 087 574870 592 700 566155 602 862 557 386 517 415 547 578 496 215 Expenditures General government 32,927 32,660 33,715 26,936 21,358 19,447 18,679 19,052 21,070 18,270 Police 169,922 161,633 170,308 160,355 156,338 148,801 139,775 127,226 120,962 117,702 Fire & Rescue 91,310 92,793 85,677 76,604 74,888 70,164 66,399 61,483 57,529 56,127 Housing & Community Development 159,591 120,165 105,386 92,699 88,263 86,841 87,007 87,962 82,404 84,436 Economic Development 7,625 5,928 6,659 11,375 5,592 5,248 20,537 1,484 1,254 1,846 Planning & Building 24,595 24,662 24,498 24,196 23,649 21,997 19,935 17,667 16,086 15,785 Public Works 36,681 39,606 37,022 32,329 34,331 30,886 30,388 29,814 29,737 25,387 Community Services 36,241 33,306 40,690 36,339 34,042 32,258 31,980 28,394 30,602 25,268 Public Utilities 2,121 2,187 2,397 2,448 2,341 2,496 2,727 2,622 2,510 2,398 Convention, Sports & Entertainment 16,871 2,484 11,774 15,575 14,639 14,023 13,089 11,608 10,714 10,002 Capital outlay 22,318 29,250 71,117 43,191 46,366 44,532 32,589 79,710 136,597 98,601 Debt service:
Principal 18,632 17,409 18,575 32,128 14,749 26,123 28,448 25,289 24,220 18,948 Interest charges 31700 29694 78065 30943 28 412 15 571 16930 18085 18 797 19808 Total expenditures 650 534 591 777 685883 565118 544968 518387 508483 510 396 552482 494 578 Revenues over (under) expenditures 92 687 (46 101}
(111013}
5834 21187 84475 48903 6892 (4904}
1637 Other Financing Sources (Uses)
Transfers in 134,280 42,141 78,434 107,804 97,513 103,797 95,920 85,818 84,813 73,470 Transfers out (127,296)
(44,309)
(67,793)
(102,556)
(93,285)
(101,446)
(85,403)
(79,373)
(75,953)
(59,393)
Premium on long term debt 35,279 1,790 Issuance of long-term debt 25,046 139,554 175,565 2,250 6,125 1,100 28,854 1,350 31,500 Payments to refunded bond escrow agent (23,348)
(209,065)
(6,200)
Bonds issuance costs (198)
(1,411)
(1,748)
(127)
Total other financing sources 8484 135 975 10641 5279 6478 8476 11617 30 762 10210 45 577 Net change in fund balances 101171 91285 (100372}
12,861 27 665 92 951 60 520 37,781 5,306 47 214 Debt service as a percentage of non-ca pita I expenditures 8.01%
8.35%
15.72%
11.60%
8.66%
8.80%
9.54%
10.07%
10.34%
9.79%
1 Contribution from property owners pursuant to the issuances of Community Facility District 08-1 Platinum Triangle Series 2010 (Fiscal Year 2011), and Series 2016 (Fiscal year 2017) Special Tax Bonds.
'Increase in Use of money and property in Fiscal Year 2016 is due to one-time land held for resale transferred from the Successor Agency 3 Decreases in Sales and Use Taxes and Transient Occupancy Taxes in Fiscal Years 2020 and 2021 are due to COVID-19 pandemic and California Stay-At-Home Order 4 Increases in Intergovernmental revenues in Fiscal years 2020, 2021 and 2022 are due to CARES and ARP fundings.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16
General Government Tax Revenues By Source Last Ten Fiscal Years (In thousands)
(Modified accrual basis of accounting)
Amounts in Dollars Progert)l Taxes Property Fiscal Secured Property Unsecured Supplemental Taxes Vear Taxes Property Taxes Property Taxes Residual in-lieu of VLF z 2022 48,113 $
1,499 $
1,107 $
4,943 $
38,892 2021 46,499 1,371 933 3,949 37,470 2020 44,285 1,378 920 3,850 35,823 2019 41,529 1,263 1,173 3,322 33,535 2018 39,396 1,265..
1,259 2,892 31,735 2017 37,771 1,214 1,108 2,484 30,332 2016 37,000 1,256 991 2,203 29,196 2015 35,624 1,358 1,001 2,262 28,160 2014 33,976 1,243 832 2,873 27,358 2013 33,114 1,194 806 2,834 26,363 1 Increase in sales and use taxes in Fiscal Year 2016 was due to the sales tax triple flip final distribution.
CITY OF ANAHEIM Transient Sales and Use Occupancy Taxes 13 Taxes 3 Other Taxes Total 103,421 177,057 8,689 $
383,721 76,907 30,180 8,139 205,448 76,898 122,351 8,024 293,529 84,792 161,948 8,175 335,737 81,680 154,925 8,311 321,463 80,500 149,566 8,287 311,262 81,844 137,570 8,024 298,084 71,977 119,744 7,478 267,604 68,581 110,134 7,012 252,009 62,793 102,936 7,078 237,118 2 Collection of property taxes in-lieu of VLF starting in fiscal year 2005 is due to the shifting of revenue from motor vehicle license fees category to the property tax category. This was part of the State of California 2004 Budget Act.
3 Decreases in Sales and Use Taxes and Transient Occupancy Taxes in Fiscal Years 2020 and 2021 are due to impacts of COVID-19 and the California Stay-At-Home order.
Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 17
CITY OF ANAHEIM Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (In thousands)
(Modified Accrual Basis of Accounting)
Fiscal Year 2022 2021 2020 2019 2018 City of Anaheim Secured property 43,892,712 42,491,830 40,745,451 38,098,867 36,199,163 Unsecured property 1,679,279 1,315,829 1,273,871 1,302,121 1,175,627 Total City of Anaheim 45,571,991 43,807,659 42,019,322 39,400,988 37,374,790 Redevelopment Project Areas Secured property 6,565,882 6,333,408 5,938,225 5,593,018 5,182,683 Unsecured property 898,924 957,529 893,906 737,385 720,305 Total Anaheim Redevelopment Agency 7,464,806 7,290,937 6,832,131 6,330,403 5,902,988 Total Taxable Assessed Value 53,036,797 51,098,596 48,851.453 45,731,391 43,277,778 Total Direct Tax Rate 1.00000%
1.00000%
1.00000%
1.00000%
1.00000%
Fiscal Year 2017 2016 2015 2014 2013 City of Anaheim Secured property 34,732,460 33,338,748 32,023,757 30,548,214 29,608,967 Unsecured property 1,172,650 1,243,307 1,515,905 1,266.403 1,265,519 Total City of Anaheim 35,905,110 34,582,055 33,539,662 31,814,617 30,874.486 Redevelopment Agency Project Areas Secured property 4,773,715 4,479,386 4,102,931 3,916,169 4,338,935 Unsecured property 684 544 753,736 759,729 654,982 683,237 Total Anaheim Redevelopment Agency 5,458,259 5,233,122 4,862,660 4,571,151 5,022,172 Total Taxable Assessed Value 41,363,369 39,815,177 38,402,322 36,385,768 35,896,658 Total Direct Tax Rate 1.00000%
1.00000%
1.00000%
1.00000%
1.00000%
Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%).With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: Auditor-Controller, County of Orange; California Municipal Statistics, Inc.
See accompanied independent auditors' report 17
CITY OF ANAHEIM Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Rate per $100 assessed value)
Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Direct Rate Basic Levy1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates2 :
Anaheim General Obligation Bond Fund 0.00173 0.00198 0.00211 0.00227 Anaheim City School Districts 0.06321 0.06595 0.05943 0.05059 0.04502 0.04461 0.04227 0.02867 0.05848 0.05382 Anaheim Union High School Districts 0.03804 0.03971 0.03968 0.04244 0.02211 0.04259 0.04948 0.02412 0.02620 0.02858 North Orange County Community College 0.02877 0.03198 0.02409 0.02829 0.02927 0.02885 0.03043 0.01704 0.01704 0.01902 Water District Rate 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.13352 0.14114 0.12670 0.12482 0.0999 0.11955 0.12741 0.07531 0.10733 0.10719 Total Direct and Overlapping Rates 1.13352 1.14114 1.12670 1.12482 1.09990 1.11955 1.12741 1.07531 1.10733 1.10719 City's share of 1% Basic Levy per Prop 133 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 1 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 Constitution was amended to allow rates over the 1% base rate for voter approved general obligation debt. Valuations of real property are frozen at the value of the property in 1975, with an allowable adjustment up to 2% per year for inflation. However, property is assessed to its current value when a change of ownership occurs. New construction, including tenant improvements, is assessed at its current value.
2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
3 City's share ofl% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City.
Source: Auditor Controller, Orange County See accompanied independent auditors' report 17
CITY OF ANAHEIM Principal Property Tax Payers Current Vear and Nine Years Ago (In thousands)
Fiscal ear 2022 2013 Percentage Percentage of Total Taxable of Total Taxable Assessed Assessed Assessed Assessed Tax Payer Rank Value Value Rank Value Value Walt Disney World Company 1
10.88% $
5,488,729 1
12.28% $
4,170,132 HHC HA Investment II Inc.
2 0.44%
222,575 Anaheim Concourse ILP LLC 3
0.40%
201,808 C3J LP 4
0.39%
194,728 Jefferson at Stadium Park 5
0.34%
173,390 US REIF MG Madison Park CA LLC 6
0.27%
135,460 Mary Susan Samia Trust 7
0.25%
126,895 Irvine Company LLC 8
0.25%
124,983 2
0.45%
152,654 Advance Group 18-116 9
0.23%
117,312 CH Realty VIII - Redhill MF 10 0.22%
111,261 Makar Anaheim LLC 3
0.39%
133,282 Reef America REIT II 4
0.33%
133,127 Kilroy Realty LP 5
0.33%
111,419 La Palma/Miller Owner LLC 6
0.29%
98,611 PPC Anaheim Apartments 7
0.27%
92,491 Angeli LLC 8
0.26%
86,806 Lennar Platinum Triangle 9
0.22%
75,000 BRE Properties Inc.
10 0.22%
73,042 Total 13.67% $
6,897,141 15.04% $
5,126,564 Source: Finance Department, City of Anaheim, California Municipal Statistics, Inc.
See accompanied independent auditors' report 17
Property Tax Levies and Collections Last Ten Fiscal Years (In thousands)
Collected within the Fiscal Year of the Lew Total Fiscal Taxes Percentage Year Lew Amount 1 of Lew 2022 51,577 50,270 97.47%
2021 49,162 48,306 98.26%
2020 47,082 46,223 98.18%
2019 44,588 43,630 97.85%
2018 42,432 41,578 97.99%
2017 40,787 39,710 97.36%
2016 40,026 38,832 97.02%
2015 38,365 37,456 97.63%
2014 36,293 35,558 97.97%
2013 34,813 34,116 98.00%
1 Excludes property taxes in-lieu of vehicle license fees Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.
Source: Auditor-Controller, County of Orange Collections in Subsequent Years See accompanied independent auditors' report CITY OF ANAHEIM Total Collections to Date Percentage Amount of Lew 237 50,507 97.93%
450 48,814 99.29%
497 46,720 99.23%
360 43,990 98.66%
336 41,914 98.78%
342 40,052 98.20%
382 39,214 97.97%
414 37,870 98.71%
460 36,018 99.24%
384 34,500 99.10%
17
CITY OF ANAHEIM Ra'tios of Outstanding Debt by Type Last Ten Fiscal Years (In thousands, except per capita amount)
Fiscal Year 2022 2021 2020 2019 2018 Governmental Activities Bonds 666,167 684,157 562,005 600,444 621,675 Notes and loans 21,473 16,466 19,681 23,796 28,008 Leases 4,375 4828 2297 1988 1550 Total governmental activities 692,015 705 451 583,983 626,228 651,233 Business-Type Activities Bonds 1,304,522 1,173,008 1,220,797 1,172,354 1,214,339 Notes and loans 2,402 6,366 9,866 13,418 16,972 Leases 2,997 3 337 198 Total business-type activities 1,309,921 1,182,711 1,230,861 1,185,772 1,231,311 Total Government 2,001,936 1,888,162 1,814,844 1,812,000 1,882,544 Percentage of Personal Income 17.87%
16.69%
16.87%
16.20%
18.06%
Per Capita 5,867 5,479 5,083 5,080 5,272 Fiscal Year 2017 2016 2015 2014 2013 Governmental Activities Bonds 627,589 632,321 640,891 614,757 616,086 Certificates of participation 8,880 10,020 Notes and loans 29,577 20,820 21,372 50,757 54,877 Capital leases 1738 2088 2346 1325 1369 Total governmental activities 658 904 655,229 664609 675 719 682,352 Business-Type Activities Bonds 1,235,400 1,124,159 1,116,443 780,553 863,987 Certificates of participation 38,000 38,000 Notes and loans 20,523 36,200 57399 48271 62,722 Total business-type activities 1,255,923 1,160,359 1,173,842 866,824 964 709 Total Government 1,914,827 1,815,588 1,838,451 1,542,543 1,647,061 Percentage of Personal Income 20.12%
20.18%
21.26%
17.22%
19.74%
Per Capita 5,341 5,070 5,231 4,429 4,758 Note: Per capita income for 2022 is unavailable. Estimate the Per Capita for fiscal 2022 is estimated by using the 2021 Per Capita Income.
Certain reclassifications have been made to prior year data to conform to the current presentation Sources: California Department of Finance, Demographic Research Unit, E-1 City/County Population Estimates with Annual Percent Change; and Finance Department, City of Anaheim US Census Yearly American Community Survey See accompanied independent auditors' report 17
CITY OF ANAHEIM Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (In thousands, except per capita amount)
Fiscal Year 2022 2021 2020 2019 2018 Bonds Lease Revenue1 666,167 684,157 562,005 600,444 621,675 Less amount available for principal Total net obligation bonds outstanding 666,167 684,157 562,005 600,444 621,675 Percentage of Assessed Value of Property 1.26%
1.34%
1.15%
1.31%
1.44%
Per capita 1,952 1,985 1,574 1,683 1,741 Fiscal Year 2017 2016 2015 2014 2013 Bonds General Obligation 700 1,360 1,995 2,605 Lease Revenue1 627,589 631,621 639,531 612,762 613,481 Tax Allocation 627,589 632,321 640,891 614,757 616,086 Less amount available for principal 700 813 725 703 Total net obligation bonds outstanding 627,589 631,621 640,078 614,032 615,383 Percentage of Assessed Value of Property 1.52%
1.59%
1.67%
1.69%
1.71%
Per capita 1,750 1,764 1,821 1,763 1,778 Note:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements 1 lncludeAccretion on revenue bonds Certain reclassifications have been made to prior year data to conform to current presentation.
Source: Finance Department, City of Anaheim See accompanied independent auditors' report 17
Direct and Overlapping Governmental Activities Debt As of June 30, 2022 (In thousands) 2021-22 Assessed Valuation 53,036,796 DIRECT DEBT:
City of Anaheim 2 Lease Revenue Bonds Notes and Loans from direct placements Leases TOTAL CITY OF ANAHEIM DIRECT DEBT 2 OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District North Orange Joint Community College District Rancho Santiago Community College District Rancho Santiago Community College District School Facilities Improvement District Nol Anaheim Union High School District Fullerton Joint Union High School District Garden Grove Unified School District Orange Unified School District Placentia - Yorba Linda Unified School District Anaheim School District Magnolia School District Other School Districts City of Anaheim Community Facilities Districts California Statewide Community Community Development Authority Assessment Districts TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations Orange County Pension Obligation Bonds Orange County Board of Education Certificates of Participation North Orange County Regional Occupation Program Certificates of Participation Orange Unified School District Certificates of Participation Orange Unified School District Benefit Obligations Placentia-Yorba Linda Unified School District Certificates of Participation Anaheim Union High School District Certificates of Participation Fullerton Joint Union High School District Certificates of Participation Fullerton School District General Fund Obligations Magnolia School District General Fund Obligations TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT OVERLAPPING TAX INCREMENT DEBT (Successor A9ency):
City of Anaheim Tax Allocation Bonds TOTAL OVERLAPPING TAX INCREMENT DEBT TOTAL GROSS OVERLAPPING DEBT TOTAL NET OVERLAPPING DEBT TOTAL DIRECT AND OVERLAPPING DEBT CITY OF ANAHEIM Debt Estimated Outstanding City's Share of lune 30, 2022
% A1111lica!2le1 Overfa1111ing Debt 666,167 100%
666,167 21,473 100 21,473 4375 100 4;;!75 692 015 692 015 20,175 1.562%
315 209,339 28.139 58,906 196,773 11.964 23,542 154,720 0.363 562 256,269 68.371 175,214 187,410 0.244 457 532,420 0.553 2,944 277,865 25.367 70,486 228,564 19.456 44,469 253,610 99.223 251,639 19,498 64.781 12,631 147,487 Various 23,931 52,705 100 52,705 1155 100 1155 2 537 990 718 956 375,780 7.782%
29,321 521,784 7.782 40,605 11,620 7.782 904 8,200 28.974 2,376 17,195 25.367 4,362 60,835 25.367 15,432 87,930 19.456 17,108 30,670 68.371 20,969 16,535 0.244 40 3,265 0.172 6
13 010 64.781 8428 1,146824 139 551 125,950
.080-100%
125 161 125 161 983,668 983668 1675 683 1 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
2 Includes all long-term debt instruments of the governmental activities, including bonds, notes, loans, and leases.
Source: California Municipal Statistics, Inc., City of Anaheim See accompanied independent auditors' report 17
CITY OF ANAHEIM Legal Debt Margin Last Ten Fiscal Years (In thousands)
Fiscal Year 2022 2021 2020 2019 2018 Debt limit 1,988,880 1,916,197 1,831,929 1,714,927 1,622,917 Total net debt applicable to limit Legal debt margin 1,988,880 1,916,197 1,831,929 1,714,927 1,622,917 Total net debt applicable to the limit as a percentage of debt limit 0.00%
0.00%
0.00%
0.00%
0.00%
Legal Debt Margin Assessed value 53,036,796 51,098,596 48,851,453 45,731,391 43,277,778 Debt limit (3.75% of total assessed value)1 1,988,880 1,916,197 1,831,929 1,714,927 1,622,917 Fiscal Year 2017 2016 2015 2014 2013 Debt limit 1,551,126 1,493,069 1,440,087 1,364,466 1,346,125 Total net debt applicable to limit
{700)
(1,360)
(1.995)
{2,605)
Legal debt margin 1,551,126 1,492,369 1,438,727 1,362,471 1,343,520 Total net debt applicable to the limit as a percentage of debt limit 0.00%
0.05%
0.09%
0.15%
0.19%
Legal Debt Margin Assessed value 41,363,369 39,815,177 38,402,322 36,385,768 35,896,658 Debt limit (3.75% of total assessed value)1 1,551,126 1,493,069 1,440,087 1,364,466 1,346,125 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, California Municipal Statistics, Inc.
See accompanied independent auditors' report 17
Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands)
Fiscal Electric Year Revenue 2022 445,184 $
2021 435,231 2020 426,746 2019 469,076 2018 446,156 2017 435,805 2016 433,744 2015 458,211 2014 430,782 2013 453,949 Electric Utility Revenue Bonds Less Net Operating Available Expenses1 Revenue Principal 322,786 $
122,398 $
33,065 314,374 120,857 29,010 339,624 87,122 25,005 365,983 103,093 20,975 330,376 115,780 21,305 338,888 96,917 18,950 319,169 114,575 14,040 341,206 117,005 12,950 347,290 83,492 11,590 349,835 104,114 18,995 1 Operating expenses include transfer for right of way and exclude amortization and depreciation.
(continued)
CITY OF ANAHEIM Debt Service Interest Total Coverage 27,775 $
60,840 2.0118 29,755 58,765 2.0566 26,145 51,150 1.7033 30,386 51,361 2.0072 30,613 51,918 2.2301 28,948 47,898 2.0234 27,995 42,035 2.7257 27,878 40,828 2.8658 30,039 41,629 2.0056 33,335 52,330 1.9896 17
Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands) (continued)
Water Utili:t)l Revenue Bonds Less Net Fiscal Water Operating Available Year Revenue Exgenses 1 Revenue 2022
$101,191
$74,755
$26,436 2021 97,096 78,210 18,886 2020 88,549 69,479 19,070 2019 83,079 59,273 23,806 2018 80,131 59,975 20,156 2017 71,790 56,487 15,303 2016 61,721 46,383 15,338 2015 65,518 52,883 12,635 2014 66,979 50,046 16,933 2013 61,849 44,838 17,011 1 Operating expenses include transfer for right of way and exclude 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 Less Fiscal Wastewater Operating Year Revenue 2 Exgenses 3 2022
$13,869
$7,042 2021 14,669 7,047 2020 17,044 8,012 2019 16,740 7,767 2018 13,963 6,779 2017 13,771 6,252 2016 13,291 5,733 2015 13,373 6,103 2014 12,572 5,594 2013 12,106 5,477 2 Amounts based on the notes to the basic financial statement, segment reporting 3 Operating expenses exclude amortization and depreciation.
Sanitation Revenue Bonds Net Available Revenue
$6,827 7,622 9,032 8,973 7,184 7,519 7,558 7,270 6,978 6,629 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 Princigal
$5,375 4,970 3,640 3,490 3,370 3,380 5,885 960 920 950 Princigal
$1,295 1,230 1,170 1,080 1,095 1,045 1,005 955 920 880 See accompanied independent auditors' report CITY OF ANAHEIM Debt Service Interest Total Coverage
$8,100
$13,475 1.9619 8,511 13,481 1.4009 7,242 10,882 1.7524 7,519 11,009 2.1624 7,638 11,008 1.8310 6,815 10,195 1.5010 1,775 7,660 2.0023 4,178 5,138 2.4591 4,217 5,137 3.2963 4,255 5,205 3.2682 Debt Service Interest Total Coverage
$2,111
$3,406 2.0044 2,173 3,403 2.2398 2,231 3,401 2.6557 2,323 3,403 2.6368 1,902 2,997 2.3971 1,954 2,999 2.5072 1,994 2,999 2.5202 2,042 2,997 2.4258 2,079 2,999 2.3268 2,118 2,998 2.2111 18
CITY OF ANAHEIM Demographic and Economic Statistics Last Ten Fiscal Years Personal Per Orange Income Capita Education County Fiscal (thousands Personal Median Level in Years School Unemployment Year Population of dollars)
Income 1 Age of Schooling Enrollment 2 Rate 2022 341,245
$11,202,050 32,827 37.2 12.2 53,135 2.90%
2021 344,604 11,312,316 32,827 37.2 12.2 53,135 6.00%
2020 357,059 10,755,331 30,122 35.2 12.2 51,110 9.00%
2019 356,669 11,187,993 31,368 35.2 12.2 51,110 2.80%
2018 357,084 10,422,568 29,188 34.4 12.2 59,580 3.00%
2017 358,546 9,515,094 26,538 34.3 12.2 58,761 3.50%
2016 358,136 8,998,883 25,127 34.1 12.2 58,972 4.10%
2015 351,433 8,649,469 24,612 33.6 12.2 58,435 4.50%
2014 348,305 8,955,966 25,713 34.2 12.2 58,366 5.60%
2013 346,161 8,344,211 24,105 33.8 12.2 59,703 6.70%
1 Per capita personal income for year 2022 data not readily available.
2 Public school district, Kindergarten to 12th grade Sources:
California State Department of Finance State of California, Employment Development Department State Department of Commerce and Labor US Census Yearly American Community Survey See accompanied independent auditors' report 18
CITY OF ANAHEIM Principal Employers Current Vear and Nine Years Ago Fiscal Year 2022 2013 Percentage Percentage of Total City of Total City Employer Rank Emelo:tees Emelo:tment Rank Emelo:tees Emelo:tment Disneyland Resort 1
34,000 20.15%
1 23,512 14.00%
Kaiser Permanente 2
2,300 1.36%
2 6,040 3.60%
Northgate Gonzalez Supermarkets 3
1,000 0.59%
10 850 0.50%
L-3 Communications 4
950 0.56%
9 940 0.60%
Anaheim Regional Medical Center 5
879 0.52%
5 1300 0.80%
Hilton Anaheim 6
850 0.50%
3 1,572 0.90%
West Anaheim Medical Center 7
805 0.48%
Angels Baseball 8
800 0.47%
7 1,051 0.60%
St. Joseph Health 9
800 0.47%
Anaheim Marriott Hotel 10 425 0.25%
8 1,030 0.60%
CashCall Inc. Mortgage Division 4
1,400 0.80%
Republic Services 6
1,300 0.80%
Total 42,809 25.35%
38,995 23.20%
Source: Econovue,lnside Prospects Inc., Orange County Business Journal See accompanied independent auditors' report 18
Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 Function[Program City Council 9
9 9
9 9
9 6
7 City Administration 19 19 19 19 19 19 19 20 City Attorney 33 33 33 33 33 33 33 33 City Clerk 8
8 8
8 8
8 8
7 Human Resources 40 40 40 40 40 40 39 37 Finance 1 55 55 55 55 55 55 54 44 Police 617 591 591 590 590 576 569 561 Fire & Rescue 330 276 276 276 276 276 274 267 Housing & Community Development 70 73 73 73 73 73 73 71 Economic Development 7
Planning & Building 77 76 76 76 76 76 76 75 Public Works 236 236 236 236 236 236 235 237 Community Services 93 93 93 93 93 92 92 91 Public Utilities 352 352 352 352 352 352 352 354 Convention, Sports &
Entertainment 85 85 85 85 85 85 85 85 Total 2,031 1946 1946 1,945 1,945 1,930 1,915 1,889 1 Increase in Fiscal Year 2016 is due to reorganization of the Citywide Geographic Information System (GIS) and Police Information System into Finance.
- Economic Development Department was created in FY 2021/22 and included the transfer of three positions from Housing & Community Development Source: City of Anaheim (continued)
CITY OF ANAHEIM 2014 2013 7
7 20 20 31 30 7
7 37 38 44 44 549 536 262 262 68 78 71 69 236 234 87 87 353 352 84 83 1,856 1847 18
CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 20,!,!
2021 2020 2019 2018 2017 2016 2015 2014 2013 Functian/Pragram Police Department Number of calls for service 202,134 192,471 193,998 192,422 200,934 200,695 208,710 195,305 186,042 186,461 Number of9ll calls received 164,859 138,985 148,895 163,445 146,770 150,555 155,371 158,447 145,813 182,856 Number of Part I Crimes per 100,000 population 4,798 3,008 2,719 2,731 2,925 2,917 3,279 2,950 2,883 3,326 Number of Arrest 8,057 10,491 10,576 12,575 11,865 11,010 11,604 11,405 11,846 11,617 Number of Field Reports processed by Records Bureau 36,745 34,268 35,971 39,373 45,402 41,208 41,655 39,191 38,362 39,066 Number of traffic collisions 4,454 3,399 4,276 4,378 4,757 4,817 5,179 4,833 4,686 4,414 Number of Hours of Volunteer service 11,099 4,018 11,435 18,380 19,270 21,132 21,647 22,885 24,124 23,470 Fire Department Fire responses 1,323 1,129 996 1,025 1,057 1,035 1,082 952 885 902 False alarm responses 1,266 1,184 2,432 2,038 1,803 1,903 1,848 3,910 1,735 1,424 Mutual aid responses 3,514 3,018 3,596 3,906 4,069 5,450 5,506 4,322 3,001 2,860 Medical responses 30,489 26,759 29,195 29,232 29,385 28,437 28,858 27,158 24,912 24,735 Hazardous condition responses 158 173 180 204 190 222 211 213 211 207 Public Works Centerline miles of arterial highway pavement improved 4.60 9.93 3.40 9.15 1.29 1.22 4.7 3.6 7.1 5.9 Square feet of deteriorated pavement replaced 3,739,337 4,000,210 2,746,130 3,389,786 2,960,600 4,017,828 2,487,188 2,101,231 4,345,480 4,029,806 Square feet of deteriorated pavement slurry sealed 84,295 708,860 2,017,000 3,003,023 4,704,400 5,519,982 1,941,187 7,253,633 4,422,148 2,850,939 Number of traffic intersections maintained 339 395 394 376 360 335 333 321 327 318 Number of traffic control hubs maintained 18 20 20 18 18 18 18 18 19 18 Square feet of deteriorated sidewalk replaced 127,323 244,043 93,243 194,674 162,774 102,305 232,922 153,531 96,399 77,590 Linear feet of damaged curb/gutter replaced 27,284 34,275 29,311 78,147 65,569 6,797 33,373 30,152 29,996 25,187 Square feet of medians/parkways maintained 6,301,655 6,301,655 6,297,655 6,297,655 6,101,098 6,063,299 6,063,299 5,721,764 5,644,799 5,644,818 Square feet of landscape maintained in the Anaheim Resort 1,674,600 1,656,500 1,656,500 1,656,500 1,605,958 1,554,886 1,554,886 1,542,442 1,542,442 1,430,486 Square feet of hardscape maintained in the Anaheim Resort 991,860 991,860 991,360 991,360 991,350 991,360 991,360 991,370 991,360 858,828 Number of vehicles maintained 868 887 887 1,059 1,050 1,036 1,025 1,097 1,144 1,106 Number of vehicles per mechanic 45 44 44 46 52 49 49 57 58 58 Square feet of interior space maintained 2,409,427 2,409,427 2,409,427 2,408,734 2,399,337 2,379,100 2,379,100 2,379,100 2,700,000 2,362,992 Square feet of exterior space maintained 37,746,100 37,746,100 37,746,100 37,746,100 37,698,184 37,662,184 37,662,184 37,662,184 37,655,278 37,645,278 Number of facility square feet (interior) per worker 120,471 120,471 120,471 120,437 126,281 125,215 1,459,000 1,459,000 150,000 139,000 Number of construction projects 1,411 1,072 708 590 180 80 120 100 165 120 Number of permit inspections 8,212 9,426 1,007 1,691 900 650 510 429 486 380 Parks Number of park acres maintained per full-time equivalent employee 78 78 78 77 77 77 77 76 75 75 Number of sports fields prepared 66 66 66 66 66 66 66 66 66 66 Cost per acre of parks maintained 10,663 $
9,873 $
9,585 $
9,325 $
9,497 $
9,221 $
8,952 $
8,691 $
8,438 $
8,192 Cost per sports field maintained 5,805 $
5,375 $
5,219 $
5,082 $
4,934 $
4,791 $
4,655 $
4,519 $
4,387 $
4,260 Golf Courses Cost per acre of golf course maintained 18,328 $
15,176 $
9,712 $
10,906 $
11,147 $
10,434 $
10,076 $
9,455 $
9,931 $
9,595 Number of rounds played 169,037 145,025 94,746 105,952 102,498 102,542 102,234 110,855 117,652 118,879 Number of acres maintained 200 200 200 200 200 200 200 200 200 200 (Continued)
See accompanied independent auditors' report 18
CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years (Continued)
Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function/Program City Libraries Hours open 11,310 9,992 14,668 16,965 17,065 16,023 15,461 16,929 16,820 16,243 Total circulation of materials, including eBooks 832,155 783,392 1,012,328 1,006,276 1,026,997 1,117,096 1,169,829 1,257,127 1,397,239 1,520,841 Patron assistance (reference, information, computer) 154,148 132,623 225,468 191,269 207,724 226,429 185,436 207,305 240,287 291,960 Patron visits 3,013,726 4,045,310 1,184,487 1,382,433 1,460,551 981,637 1,098,146 1,221,982 1,264,972 1,317,689 Library cardholders 269,532 260,441 254,093 297,256 233,312 230,951 217,661 201,194 186,891 158,396 Programs offered 2,495 1,570 3,585 4,449 4,770 4,507 3,900 3,800 3,397 3,097 Program attendance 96,403 367,901 196,521 141,504 144,660 142,098 125,609 117,226 111,380 102,728 Hours of public internet usage 36,885 16,289 89,344 136,671 151,709 144,364 150,712 184,851 209,953 237,340 Community Services Programs Number of youth program participants 52,284 52,284 152,791 165,264 197,228 181,697 183,967 177,746 126,429 136,345 Number of youth program participants in recreation classes 6,088 6,088 9,894 8,291 7,957 8,500 13,026 10,136 13,897 10,906 Number of adult program sports teams 112 112 343 537 588 679 725 750 791 841 Number of park ranger contacts 530,361 530,361 547,707 781,176 641,320 382,310 278,599 327,893 263,765 233,308 Public Utilities Department Electric Utility:
Number of meters 104,561 121,526 121,227 120,400 119,564 118,248 117,593 115,682 115,474 115,418 Megawatt-hours - sales 2,682,392 2,652,150 2,687,030 3,109,157 3,217,353 3,298,340 3,229,569 3,725,386 4,065,552 3,312,018 Megawatt-hours - purchased power 2,781,257 2,745,977 2,760,933 3,120,824 2,985,962 2,990,931 3,050,657 3,417,459 3,751,220 3,029,766 Megawatt-hours - owned generation1 2
60,890 231,391 398,068 318,921 371,657 467,348 410,601 Water Utility:
Number of meters 64,698 64,592 64,421 64,188 64,001 63,489 63,775 63,145 63,002 62,917 Millions of gallons sold 17,968 17,733 17,861 17,760 19,308 17,422 16,607 19,804 20,743 20,464 Millions of gallons purchased from Metropolitan Water District 13,715 13,673 7,877 3,581 8,767 4,170 4,373 4,717 5,286 6,878 Millions of gallons pumped from water system wells 5,470 4,921 10,947 14,603 10,742 14,217 13,213 15,180 16,749 14,659 Anaheim Convention Center Number of events serviced 101 13 135 168 171 179 181 197 221 263 Number of attendees 641,000 377,000 916,000 1,083,000 960,000 925,000 954,000 986,000 1,020,000 1,070,000 Percentage of occupancy 42.00%
19.00%
46.00%
55.00%
68.00%
72.00%
59,0%
63,0%
63,0%
58,0%
1 The City sold its shares of SONGS and SJ ownserships Sources: Various City departments See accompanied independent auditors' report 18
CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years Fisca Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function/Program Police Department Police Facilities 9
9 9
10 10 10 10 10 10 10 Motorized Equipment 277 277 277 256 256 260 260 250 247 247 Police Helicopters 3
3 3
3 3
3 2
2 2
3 Shooting Range 1
1 1
1 1
1 1
1 1
1 Communication/Radio Tower 1
1 1
1 1
1 1
1 1
1 Fixed Wing 1
1 1
1 1
1 1
1 1
1 Fire Department Fire stations 11 11 11 11 11 11 11 11 11 11 Training center 1
1 1
1 1
1 1
1 1
1 Fire trucks, engines, and other vehicles 91 88 85 79 76 75 75 74 74 79 Public Works Streets (center lane miles}
584 584 584 584 584 585 584 584 578 578 Traffic signals 392 395 394 376 360 335 321 321 321 318 Sewers (miles}
578.43 578.43 578.43 578.43 578.43 578.17 578.13 577.60 575.52 575.52 Storm Drains (miles}
151.82 151.82 151.82 151.82 151.82 151.82 151.30 151.30 151.30 151.30 Parks Community parks 9
9 9
9 9
11 11 11 11 11 Mini parks 11 10 10 10 10 15 15 9
7 7
Neighborhood parks 23 23 23 23 23 23 23 21 21 21 Special use parks 3
3 3
3 3
8 8
7 7
7 Ciolf Courses 2
2 2
2 2
2 2
2 2
2 City Libraries Branch libraries 8
8 8
8 8
8 8
8 7
7 Bookmobiles 2
2 1
1 1
1 1
1 1
1 Museums/Historic properties 5
5 5
5 5
5 5
5 5
5 (Continued)
See accompanied independent auditors' report 18
Capital Assets Statistics by Function Last Ten Fiscal Years (continued) 2022 2021 Function/Program Public Utilities Department Electric Utility:
Transmission, 69 kV, circuit miles 89 89 Distribution, 12 kV and lower, circuit miles Overhead 389 391 Underground 769 764 Water Utility:
Active Wells 18 17 Reservoirs 13 13 Water Mains {miles) 757 757 Fire Hydrants 7,946 7,943 Anaheim Convention Center Square footage available,
1,370,000 1,370,000 Number of exhibit halls.
7 7
Source: Various City Departments Fiscal Year 2020 2019 2018 2017 88 90 90 88 393 401 402 408 742 709 708 693 19 15 18 17 13 13 14 14 758 754 753 753 7,912 7,835 7,842 7,832 1,370,000 1,370,000 1,130,000 1,130,000 7
7 5
5 See accompanied independent auditors' report CITY OF ANAHEIM 2016 2015 2014 2013 87 86 87 86 414 420 426 428 680 666 662 656 18 17 18 18 14 14 14 14 753 753 753 753 7,840 7,832 7,816 7,812 1,130,000 1,130,000 1,130,000 1,130,000 5
5 5
5 18
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Other Information Anaheim, California Other Information
CITY OF ANAHEIM Summary of Pension Liability Funding Progress (in thousands)
Unfunded Accrued Accrued June 30, 2021 Fair Value of Liability Liability Funded Annual Covered UAL as a% of Actuarial Valuation Date Assets (FVA)
(AL)
(UAL)
Ratio Pa:r:roll Pa:r:roll Miscellaneous 1,308,881 $
1,619,285 $
310,404 80.8% $
111,733 277.8%
Police Safety 742,705 943,632 200,927 78.7%
52,861 380.1%
Fire Safety 395,894 510,417 114,523 77.6%
26,393 433.9%
Total 2,447,480 $
3,073,334 $
625,854 79.6% $
190,987 327.7%
Unfunded Accrued Accrued June 30, 2020 Fair Value of Liability Liability Funded Annual Covered UAL as a o/o of Actuarial Valuation Date Assets (FVA)
(AL)
(UAL)
Ratio Pa:r:roll Pa:r:roll Miscellaneous 1,084,188 $
1,543,927 $
459,739 70.2% $
124,700 368.7%
Police Safety 612,525 882,257 269,732 69.4%
53,243 506.6%
Fire Safety 330,503 485,339 154,836 68.1 o/o 26,055 594.3%
Total 2,027,216 $
2,911,523 $
884,307 69.6% $
203,998 433.5%
Unfunded Accrued Accrued June 30, 2019 Fair Value of Liability Liability Funded Annual Covered UAL as a o/o of Actuarial Valuation Date Assets (FVA)
(AL)
(UAL)
Ratio Pa:r:roll Pa:r:roll Miscellaneous 1,057,123 $
1,502,706 $
445,583 70.3% $
124,366 358.3%
Police Safety 594,766 843,974 249,208 70.5%
51,581 483.1 o/o Fire Safety 326,062 471,152 145,090 69.2%
24,421 594.1 o/o Total 1,977,951 $
2,817,832 $
839,881 70.2% $
200,368 419.2%
See accompanied independent auditors' report 19
Schedule of Funding Progress for Other Post-Employment Benefits (Amounts in Thousands)
Unfunded Fair Value of Accrued Accrued Assets Liability Liability Funded Actuarial Valuation Date (FVA)
(AL)
(UAL)
Ratios June 30, 2021 110,402 $
231,781 $
121,379 47.6%
June 30, 2019 102,332 262,907 160,575 38.9%
June 30, 2017 89,953 273,950 183,997 32.8%
See accompanied independent auditors' report CITY OF ANAHEIM UAL as a %of Annual Covered-Covered-Emeloyee Payroll Emeloyee Payroll 203,733 59.6%
209,656 76.6%
203,473 90.4%
19
PARKS
- 1. HANSEN PARK 1300 S. Knott St.
- 2. REID PARK 3100 W. Orange Ave.
- 3. SCHWEITZER PARK 238 S. Bel Air St.
- 4. MAXWELL PARK 2660 W. Orange Ave.
- 5. PETER MARSHALL PARK 801 N. Magnolia Ave.
- 6. BROOKHURST COMMUNITY PARK 2271 W. Cresent Ave.
- 7. JOHN MARSHALL PARK 2066 Falmouth Ave.
- 8. MODJESKA PARK 1331 S. Nutwood St.
- 9. CLARA BARTON PARK 1926 Clearbrook Ln.
- 10. CHAPARRAL PARK 1770 E. Broadway
- 11. WILLOW PARK 1625 W. Crone Ave.
12.PALM LANE PARK 1595 Palais Rd.
CITY
- 13. SAGE PARK 1313 Lido Pl.
- 14. STODDARD PARK 901 S. Ninth St.
- 15. MANZANITA PARK 1260 Riviera St.
- 16. LA PALMA PARK & STADIUM 1151 La Palma Park Way
- 17. PEARSON PARK 400 N. Harbor Blvd.
- 18. LITTLE PEOPLES PARK 220W. Elm St.
- 19. JULIANNA PARK 309 E. Juliana St.
- 20. GEORGE WASHINGTON PARK 250 E. Cypress St.
21. COLONY SQUARE 210 E. Lincoln Ave.
- 22. WALNUT GROVE PARK 905 S. Anaheim Blvd.
- 23. CITRUS PARK 104 S. Atchison St.
- 24. PONDEROSA PARK 2100 S. Hasler St.
0 F ANAHEIM Legend
- 25. LINCOLN PARK 1440 E. Lincoln Ave.
- 26. EDISON PARK 1145 Baxter St.
- 27. BOYSEN PARK 951 State College Blvd.
- 28. JUAREZ PARK 841 S. Sunkist St.
- 29. PIONEER PARK 2565 E. Underhill Ave.
- 30. RIO VISTA PARK 201 N. Park Vista St.
- 31. OLIVE HILLS PARK 4200 Nahl Ranch Rd.
- 32. RIVERDALE PARK 4545 E. Riverdale Ave.
'1"
- 33. PERAL TA CANYON PARK 115 N. Pinney Dr.
- 34. PELANCONI PARK 222 S. Avenida Margarita
- 35. IMPERIAL PARK 450 S. Imperial Hwy.
- 36. EUCALYPTUS PARK 100 N. Quintana Dr.
CITY HALL 200 S. ANAHEIM BLVD.
FIRE STATIONS POLICE STATIONS LIBRARIES CITY FACILITIES HELIPORT
- 37. OAK PARK 6400 E. Nahl Ranch Rd.
- 38. YORBA REGIONAL PARK 7600 E. La Palma Ave.
- 39. OAK CANYON NATURE CENTER 6700 Walnut Canyon Rd.
- 40. SYCAMORE PARK 8268 Monte Vista Rd.
- 41. CANYON RIM PARK 7305 E. Canyon Rim Rd.
- 42. RONALD REAGAN PARK 945 S. Weir Canyon Rd.
- 43. ROOSEVELT PARK 8160 E.Bauer Rd.
- 44. ROSS PARK 1280 W. Santa Ana St.
- 45. COTTONWOOD PARK 853 W. Cottonwood Cir.
- 46. DEER CANYON PARK Mohler & Santa Ana Rd.
- 47. FOUNDERS PARK 400 N. West St.
- 48. COLONY PARK 501 E. Water St.
- 49. ENERGY FIELD 1625 S. Ninth St.
- 50. MAGNOLIA PARK 1515 Wright Cir.
51. FRIENDSHIP PLAZA PARK 200 S. Anaheim Blvd.
- 52. ANAHEIM COVES 962 S. Rio Vista Sl
- 53. PAUL REVERE PARK 160 Guinida Ln.
- 54. MIRALOMA PARK 2600 E. Miraloma Way
- 55. CIRCLE PARK 924 S.Park Cir.
- 56. CORAL TREE PARK 1711 S. Betmor Ln.
- 57. ANAHEIM WETLANDS PARK 8500 E. La Palma Ave.
- 58. DELPHI PARK 1211 N Magnolia Ave.
- 59. JACARANDA PARK 1955 Jacaranda Way
- 60. ALOE GREEN 1400 E. Park St.
Date: 10/12/2021 3754 19
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Anaheim, California