7_CITY OF TEMPE (ACFR) 2025.PDF
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City of Tempe, Arizona
Annual Comprehensive Financial Report
For the Fiscal Year Ended
June 30, 2025
City Council:
Corey Woods, Mayor
Doreen Garlid, Vice Mayor
Arlene Chin
Berdetta Hodge
Randy Keating
Jennifer Adams
Nikki Amberg
Administrative Staff:
Rosa Inchausti, City Manager
Presented by:
Lisette Camacho, CPA, Deputy City Manager, CFO
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City of Tempe, Arizona
2
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
8
Certificate of Achievement for Excellence in Financial Reporting
14
List of Principal Officials
15
City Organizational Chart
16
FINANCIAL SECTION
Independent Auditor’s Report
18
Management’s Discussion and Analysis (required supplementary information)
21
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
35
Statement of Activities
36
Fund Financial Statements:
Balance Sheet - Governmental Funds
37
Reconciliation of the Balance Sheet to the Statement of Net Position
38
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balance to the Statement of Activities
41
Statement of Fund Net Position - Proprietary Funds
43
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
44
Statement of Cash Flows - Proprietary Funds
45
Statement of Fiduciary Net Position - Fiduciary Trust Fund
46
Statement of Changes in Fiduciary Net Position - Fiduciary Trust Fund
46
Notes to the Financial Statements
47
Required Supplementary Information:
Schedules of Required Supplementary Information
Schedule of Contributions- All Pension Plans - Last Ten Fiscal Years
89
Schedule of the Proportionate Share of the Net Pension Liability- ASRS - Last
Ten Fiscal Years
91
Schedule of Changes in the Net Pension Liability and Related Ratios- PSPRS:
Police - Last Ten Fiscal Years
92
Schedule of Changes in the Net Pension Liability and Related Ratios- PSPRS:
Fire - Last Ten Fiscal Years
93
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
3
FINANCIAL SECTION (Continued)
Required Supplementary Information: (Continued)
Schedules of Required Supplementary Information (Continued)
Schedule of Contributions- OPEB Plan- Last Nine Fiscal Years
94
Schedule of Changes in the Net OPEB Liability and Related Ratios- OPEB Plan-
Last Nine Fiscal Years
95
Schedule of Investment Returns- OPEB Plan- Last Nine Fiscal Years
96
Notes to Required Supplementary Information
97
City Wide Operating Budget
99
City Wide Capital Projects Budget
100
Combining Fund Financial Statements:
Non-major Governmental Funds:
Combining Balance Sheet
105
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
108
Internal Service Funds:
Combining Statement of Fund Net Position
112
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
113
Combining Statement of Cash Flows
114
STATISTICAL SECTION
Financial Trends
Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting)
S-1
118
Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting)
S-2
119
Fund Balances, Governmental Funds - Last Ten Fiscal Years (modified accrual basis
of accounting)
S-3
124
Changes in Fund Balance, Governmental Funds - Last Ten Fiscal Years (modified
accrual basis of accounting)
S-4
125
Revenue Capacity
Taxable Sales and Percentage of Taxable Sales by Category - Last Ten Fiscal Years
(cash basis)
S-5
128
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years
S-6
129
General Property Tax Information
S-7
130
Primary and Secondary Assessed Value and Estimated Actual Value of Taxable
Property - Last Ten Fiscal Years
S-8
131
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years
S-9
132
Property Tax Levies - All Direct and Overlapping Governments - Last Ten Fiscal Years
S-10
134
Property Tax Levies and Collections - Last Ten Fiscal Years
S-11
135
Principal Taxpayers, Property Tax - Current Fiscal Year and Nine Years Prior
S-12
136
Debt Capacity
Excise Tax Collections - Last Ten Fiscal Years
S-13
137
Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years
S-14
138
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
S-15
139
Direct and Overlapping Governmental Activities Debt
S-16
140
Legal Debt Margin Information - Last Ten Fiscal Years
S-17
141
Remaining General Obligation Bond Authorizations
S-18
142
Statistical Section Con't/Debt Capacity Cont'd
Pledged-Revenue Coverage - Last Ten Fiscal Years
S-19
143
Pledged Revenue, Projected Debt Service and Estimated Coverage - Excise Tax
Obligation (Excluding Transit Excise Tax Obligations)
S-20
145
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
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Pledged Revenue, Projected Debt Service and Estimated Coverage - Transit Excise
Tax Obligations
S-21
145
Pledged Revenue, Projected Debt Service and Estimated Coverage - Water/Sewer
Revenue Obligation
S-22
147
Demographic and Economic Information
Demographic and Economic Statistics - Last Ten Fiscal Years
S-23
149
Principal Employers - Current Fiscal Year and Nine Years Prior
S-24
150
Operating Information
Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years
S-25
151
Operating Indicators by Function/Program - Last Ten Fiscal Years
S-26
152
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
S-27
154
Water Connections by Customer Type, Sewer Connections and Sewage Treated -
Last Four Fiscal Years
S-28
155
Water Deliveries – Last Four Calendar Years
S-29
156
Metered Water Usage Charges – Last Four Fiscal Years
S-30
157
Water Rates and Sewer Rates Per Meter Size-Last Four Fiscal Years
S-31
158
Sewer Service Rates – Last Four Fiscal Years
S-32
159
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
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This section provides general information on the government’s structure
and information useful in assessing the City’s financial condition.
Introductory Section
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CITY OF TEMPE
P.O. BOX 5002
20 EAST SIXTH STREET
TEMPE, AZ 85281
480.350.8350
CITY MANAGER’S OFFICE
December 15, 2025
To the Honorable Mayor, Members of the City Council and Residents of the City of Tempe, Arizona:
The Annual Comprehensive Financial Report, including the Independent Auditor’s Report, for the fiscal year
ended June 30, 2025 is submitted in accordance with Article V of the City Charter for your review. Responsibility
for the accuracy and completeness of the presented data, including all disclosures, rests with management. To the
best of our knowledge and belief, this report is accurate in all material respects and is presented in a manner
designed to fairly set forth the financial position and results of operations of the City. All disclosures necessary to
enable the reader to gain an understanding of the City's financial activities have been included.
This Annual Comprehensive Financial Report (ACFR) represents management's report to its governing body,
constituents, legislative and oversight bodies, investors and creditors. Copies of this report will be sent to elected
officials, City management personnel, bond rating agencies, nationally recognized municipal securities information
repositories and other agencies that have expressed an interest in Tempe's financial condition. Copies of this
financial report will also be placed in the City library and be placed on the City of Tempe’s web site at https://
www.tempe.gov/government/financial-services/open-book for use by the general public.
Management is responsible for establishing and maintaining an internal control structure designed to ensure that
the assets of the City are protected from loss, theft, or misuse and that adequate accounting data are compiled to
allow for the preparation of the basic financial statements in conformity with generally accepted accounting
principles (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance
that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should
not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and
judgments by management.
The accounting firm of Heinfeld, Meech & Co., P.C., an independent certified public accounting firm, performed the
City’s annual financial statement audit. The auditor’s unmodified “clean” Independent Auditor’s Report on the
financial statements is included in the financial section of this report. The City’s independent auditors also perform
the Single Audit of the City's federal grant programs. The Single Audit Report is issued separately from this
financial report and is available upon request.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction,
overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The MD&A can be found immediately following the Independent Auditors’ Report.
CITY OF TEMPE PROFILE
History - Tempe’s history dates back to 1867 when Mr. Charles T. Hayden, father of former U.S. Senator Carl
Hayden, constructed a cable ferry on the then uncontrollable waters of the Salt River. In 1871, Mr. Hayden and
four others organized the Hayden Milling operations and related agricultural enterprises. Soon after, the Town of
Hayden’s Ferry was founded. The name of the town was changed from Hayden’s Ferry to Tempe in 1880 and was
incorporated in 1894.
Current Profile - The boundaries of Tempe encompass an area approximately 40 square miles with an estimated
population of 186,000 residents. Tempe offers more than 330 days of sunshine each year with rainfall amounts of
approximately 7 inches a year. The City is located in Maricopa County, Arizona and is bordered by the cities of
Phoenix, Scottsdale, Mesa, Chandler and the Town of Guadalupe. Tempe is surrounded by five major freeways
and is only minutes away from Phoenix Sky Harbor International Airport, making it the most accessible City in the
metropolitan Phoenix area.
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Government and Organization - On October 19, 1964, the electors in accordance with Arizona State Law ratified
a Home Rule City Charter. The City operates under a Council-Manager form of government. The Mayor is elected
for four years and six Council Members are elected at large on a non-partisan ballot for staggered four-year terms.
The City Council appoints the City Manager who has full responsibility for carrying out Council policies and
administering City operations. The City provides services as authorized by its charter including: public safety
(police, fire, building inspection), highways and streets, public transit, sanitation, water and wastewater, cultural-
recreational, human services, community development and general administration. The Rio Salado Community
Facilities District is a separate component unit of the City and facilitates the development around Tempe Town
Lake.
Budgetary Controls - The City maintains budgetary controls that are designed to ensure compliance with
budgetary and legal provisions embodied in the annually appropriated operating and capital project budgets
approved by the City Council. Activities of the General Fund, Special Revenue Funds, General Obligation Debt
Service Fund, Special Assessments Debt Service Fund, and Proprietary Funds are included in the annually
appropriated operating budget. Project-length budgets are developed for capital projects and appropriated
annually in the Capital Projects Funds. The level of budgetary control (that is, the level at which expenditures
cannot legally exceed the appropriated amount) is at the city-wide level consisting of the total operating budget
and the total capital projects budget, as adopted by the City Council. However, for budget administrative
purposes, the City maintains budgeting controls at department appropriation levels. In addition to maintaining
budgetary control via a formal appropriation, the City maintains an encumbrance accounting system.
Encumbrances are made against appropriations upon the issuance of a purchase order. As part of the annual
budgeting process, encumbrances outstanding at each fiscal year end are re-appropriated through City Council
action in order to be included in the adopted budget of the following year.
LOCAL ECONOMY
Tempe maintains one of the most thriving economic environments in the country. The local economy is based
primarily on commercial and retail trade, higher education, manufacturing, and tourism. Top research firms,
Fortune 500 companies, and start-ups make up Tempe’s economic fabric. The City is also the home of Arizona
State University, which is one of the largest institution of higher education in the United States and the largest
employer in the City. Each of these provides the City with a strong and diversified tax base.
Tourism plays an important role in the City’s local economy, offering a wide range of accommodations,
restaurants, and attractions. Tempe hosts spring training for the Los Angeles Angels Major League Baseball team,
Pat’s Run, and the Rock ‘N’ Roll Arizona Half Marathon. Also popular are Tempe Blooms, Innings Festival, and the
City’s spring and fall Festival of the Arts, featuring more than 350 artists’ booths, entertainment, food vendors, and
free admission. The Festival of the Arts attracts approximately 150,000 visitors over the three-day weekend.
Adjacent to Tempe Town Lake, the Tempe Center for the Arts features a 600-seat performance theater, visual arts
gallery, and meeting facilities.
Commercial and residential development activities continue to provide substantial increases in construction sales
tax revenues, and development remains above the long-term historical performance stabilizing Tempe’s revenues.
Additionally, current long-term memoranda of understanding with the City’s four employee groups, combined with
the recently completed City-wide Classification and Compensation Study, should help stabilize personnel cost
increases. Although inflationary pressures have eased over the past twelve months, worker shortages and supply
chain issues continue to put pressure on certain sectors of the economy.
On August 1, 2023, Senate Bill 1131 was signed into law. Effective January 1, 2025, Arizona cities and towns are
prohibited from taxing residential rental activities. Early estimates indicate recurring sales tax revenue reductions
of approximately 9% in the City’s General Fund, Transit Fund, and Arts and Culture Fund, or approximately $21
million across all funds. To address the residential rental sales tax loss, budget reduction measures will be
necessary in both the General Fund and the Transit Fund.
The City prepares a long-term forecast in November and February of each year to determine the financial health
of the City’s major operating funds. The November 2025 revenue forecast indicates that the City’s financial
condition remains stable, while incorporating the full loss of residential rental sales tax and lower state-shared
revenues. Despite the decline in local tax collections, moderate overall revenue growth is anticipated over the
forecast period and other revenues are projected to remain stable. The forecasted fund balances for all other
major funds will be within policy levels.
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Sales Tax
The largest source of revenue for Tempe’s governmental operating funds, sales tax revenue, is driven by taxable
sales tax activities. Sales tax revenue represented 46.0% of total General Fund revenues for the fiscal year.
Despite the economic impact of the pandemic primarily being felt in the fiscal years 2020 and 2021, taxable sales
recovered in fiscal year 2022 to pre-pandemic levels. Taxable sales increased in 2020 (3.2%), 2021 (3.1%), 2022
(17.3%), 2023 (4.7%) and flattened out in 2024 (0.9%). In fiscal year 2025, taxable sales decreased slightly by
1.4% and overall General Fund sales tax revenues were essentially flat at $146 million.
State-Shared Revenue
Starting in fiscal year 2017, the population figures used for the distribution of state shared revenues to all
incorporated cities and towns in the state are the official U.S. Census Bureau population estimate for each city
and town as of July 1 of the prior year, except in the year following a decennial census. The fiscal year 2025
shared revenue allocations were based on the 2020 Decennial Census and Tempe’s relative share of the state’s
total population declined and is approximately 3%. State-shared revenues consist of state sales tax, state income
tax and auto in lieu of tax revenues. Total General Fund State-shared revenues from these three revenue sources
totaled $79.3 million, which represents a $7.5 million decrease, or 8.6%. Future statewide distributions are
projected to decline due to the incorporation of San Tan Valley, which will increase the number of eligible
municipalities and reduce Tempe’s proportional population share within the distribution formula.
Property Tax
The city continues to experience continued overall improvement in assessed valuations of taxable property which
is the basis for property tax revenue assessments. Additionally, Tempe’s largest electric utility, Salt River Project,
contributes an in-lieu property tax to the City. Overall, property tax revenues slightly increased by $566 thousand
(2.2%) over the prior year. Property taxes comprised approximately 8.2% of total General Fund revenues for the
fiscal year.
LONG-TERM FINANCIAL PLANNING
The City prepares a five-year, comprehensive long-range financial forecast for each of its major operating funds in
the fall and spring of each fiscal year. In addition, the city annually updates the debt management plan. These
forecasts are critical to identifying and establishing the budgetary parameters that guide management and policy
makers in the budget allocation process. The forecast provides a long-term view of how current-year decisions will
impact the City of Tempe’s future finances and is consistent with the City Council’s stated strategic priority of
achieving long-term financial stability and vitality.
The November 2025 Long-Range Financial Forecast reflects lower overall revenue projections for fiscal year
2026, driven primarily by the loss of residential rental tax revenue beginning January 1, 2025, declining local tax
collections and expected reductions in state-shared revenues. While the forecast still anticipates moderate growth
over the remaining forecast period, the near-term outlook is more conservative. Tempe’s development activity,
including construction and building-related revenues such as permits, plan review fees, and building and trades
collections, is expected to remain stable and continue providing support to the revenue base. Although Tempe’s
economy remains comparatively strong, slower growth assumptions have been applied due to softening retail
activity and lower statewide income tax distributions. Finally, projected interest earnings have been revised
downward as the forecast now assumes planned drawdown of fund balance and reserves, as well as recent
federal interest rate cuts, reducing expected investment income going forward.
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CITY COUNCIL STRATEGIC PRIORITIES
Realization of the City Council’s strategic priorities for Tempe is ongoing. During the year, city departments, led by
the Office of Strategic Management and Diversity, continued working collaboratively to align City operations and
measure actual progress towards achieving the identified strategic priorities which are as follows:
•
Safe and Secure Communities -- Ensuring a safe and secure community through a commitment to public
safety and justice.
•
Strong Community Connections -- Developing and maintaining a strong community connection by
emphasizing the importance of open government, customer service and communication with community
members.
•
Quality of Life -- Enhancing the quality of life for all Tempe residents and workers through investment in
neighborhoods, parks, the arts, human services, and city amenities, with an emphasis on equity and
diversity.
•
Sustainable Growth & Development -- Implementing sustainable growth and development strategies to
improve Tempe’s environment, quality of life and economic outcomes. Tempe strives to make long-term
generational investments in technology, infrastructure and public transit that create a safe, clean,
equitable and healthy city.
•
Financial Stability and Vitality -- Maintaining long-term financial stability and vitality by focusing on
economic development, business retention and generating employment to create a robust and diverse
economic base.
The associated performance measures, which continue to evolve, reflect the various strategies by which
achievement of the strategic priorities will be made possible. The strategic priorities and associated performance
measures are incorporated into the decision-making processes within the City. To the extent possible, public
meeting agenda items requiring explicit council direction and/or action must identify the related strategic priorities.
This continued to be the case during the development of both the fiscal year 2024/25 Annual Operating Budget as
well as the Five-Year Capital Improvement Program Budget. Additionally, many non-budgetary decisions of the
City Council during the year were made within the context of the identified strategic priorities.
Important tools utilized in the continual evolution of strategic planning are three separate biennial surveys of the
community, businesses and employees. Another tool used to align the budget with City Council priorities is the
Strategic Tool for Aligning Resources for Tempe (START). This tool provides the Mayor and Council an early
opportunity to communicate the areas of focus for the upcoming budget year. In November 2023, using the
START Tool, the City Council identified 5 performance measures to accelerate during fiscal year 2025. This was
used as a guide in the budget development process and the areas of focus are summarized as follows:
The five prioritized performance measures are as follows:
1. Pavement Quality Index (Performance Measure 1.22)
2. Ending Homelessness (Performance Measure 3.28)
3. Property Code Enforcement (Performance Measure 3.01)
4. Feeling of Safety in Your Neighborhood (Performance Measure 1.05)
5. Employee Turnover (Performance Measure 5.07)
To ensure transparency, the progress towards the achievement of the identified strategic priorities and
performance measures are openly displayed through dashboards on the city’s public-facing website. These
dashboards also assist in fostering improved accountability to the residents of Tempe.
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FINANCIAL POLICIES
The City’s financial policies provide a general framework of goals and objectives for the operating budget, debt
management, financial reserves, financial reporting and the capital budget. Strong policies provide a standard for
measuring current budgetary performance and evaluating proposals for future programs. Notable policies to
ensure financial stability are summarized as follows:
•
Revenue and expenditures will be projected for the next five years and will be updated biannually.
•
Long-term debt will not be issued to finance current operations. Capital projects financed through the
issuance of bonds will be financed for a period not to exceed the expected useful life of the project.
•
The City will coordinate development of a five-year capital improvements budget with development of the
operating budget. Future operating costs associated with new capital improvements will be projected and
included in operating budget forecasts.
•
Unassigned fund balance coverage for the General Fund will maintain a range of 20% to 30% of General
Fund revenue.
•
The City will maintain an unrestricted fund balance of no less than 25% of current revenue, plus 2% of the
gross book value of tangible assets in the Water and Wastewater Fund, and a minimum of 15% of
anticipated revenue in the Solid Waste.
•
The City will maintain total fund balance in the Transit Special Revenue Fund of at least 25% of current
revenue operating revenues, 10% of current year operating revenues for the Highway User Revenue
Special Revenue Fund and 10% for the Arts and Culture Fund.
•
Annual property tax levy increase for existing property shall not exceed 5%.
MAJOR INITIATIVES
Vision Zero – Safe Mobility for All
The City of Tempe is committed to ensuring that all people — regardless of how they travel — can move safely
throughout the community. Tempe adopted its Vision Zero Resolution to eliminate serious injuries and fatalities on
Tempe streets, reflecting the City Council’s strategic priority of safe, accessible, and equitable transportation
options. Vision Zero recognizes that traffic deaths and severe injuries are preventable and requires a proactive,
data-driven, and community-focused approach to roadway design, traffic operations, education, enforcement, and
policy.
Tempe’s Vision Zero initiative incorporates engineering, enforcement, education, encouragement, evaluation, and
equity to create a comprehensive safety framework. Efforts focus on high-injury network analysis, speed
management, safe street design, pedestrian and bicycle safety enhancements, and collaboration across
departments, stakeholders, and partner agencies.
Homeless Solutions
The City is committed to five strategic priorities that enhance the lives of all in Tempe. Achieving an end to
homelessness is one measure of improving community quality of life. The City has invested heavily to serve those
in need and is committed to making homelessness a rare, brief and one-time experience in our community. To do
that, the city offers a comprehensive system of support that includes: street outreach, case management,
connection to social services, crisis response, mental health resources, emergency and transitional shelter, and
housing.
The City’s Homeless Solutions Task Force includes Human Services, Community Services, Tempe Police, Tempe
Fire Medical Rescue, the City Attorney's office, Tempe Municipal Court, and Communication and Media Relations.
The task force addresses topics such as:
•
Encampments in desert parks and preserves
•
Annual Point-in-Time Homeless Count
•
Emergency shelter
•
Healthy Giving
•
Heat relief
•
Park safety and community wellness
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Affordable Housing
The Hometown for All initiative was introduced by Mayor Woods and approved by the City Council in 2021.
Hometown for All provides a dedicated funding stream to accelerate the growth of affordable and workforce
housing to ensure that Tempe has a variety of housing types.
For every new development project built in Tempe, 50% of certain permitting fees paid to the city’s General Fund
up to $2 million goes to support the nonprofit Tempe Coalition for Affordable Housing. Those funds are used to
purchase land and properties and reimagine city-owned parcels for future development.
AWARDS AND ACKNOWLEDGMENTS
Certificates of Achievement
The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive financial report
for the fiscal year ended June 30, 2024. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards in the preparation of state and local government financial
reports. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently
organized Annual Comprehensive financial report, whose contents conform to program standards. This report
satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of
Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last
forty-eight consecutive years (fiscal years 1975/76 through 2023-2024). We believe our current report continues to
conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for award
consideration.
In further demonstration of its’ commitment to financial excellence, the City also received the GFOA's
Distinguished Budget Presentation Award for the FY 2024-25 annual budget and the National Purchasing
Institute’s Achievement of Excellence in Procurement Award for FY 2024-25.
Acknowledgment
The preparation of this report could not have been accomplished without the dedicated service of the entire staff
of the Financial Services’ Accounting Division and the competent service of our independent auditors. Credit also
must be given to the Mayor and City Councilmembers for their continued support for maintaining the highest
standards of professionalism in the management of the City of Tempe’s finances. For all those involved, we
express our sincerest appreciation.
Respectfully submitted,
Rosa Inchausti
City Manager
Lisette Camacho, CPA
Deputy City Manager
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Government Finance Officers Association
Certificate of
Achievement for
Excellence in
Financial
Reporting
Presented to
City of Tempe Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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For the Fiscal Year
Ended June 30, 2025
City of Tempe, Arizona
List of Principal Officials
City Council
Corey Woods, Mayor
Doreen Garlid, Vice Mayor
Arlene Chin
Berdetta Hodge
Randy Keating
Nikki Amberg
Jennifer Adams
Administrative Staff
Rosa Inchausti, City Manager
Greg Ruiz, Interim Chief Deputy City Manager
Lisette Camacho, Deputy City Manager
Keith Burke, Deputy City Manager
Kenneth McCoy, Police Chief
Darrel Duty, Interim Fire Chief
Velicia McMillan Humes, Diversity, Equity and Inclusion
Eric Iwerson, Transportation and Sustainability
Jonathan Shuffield, Government Relations
Kris Baxter, Communications and Marketing
Craig Hayton, Community Services
Tara Ford, Public Works
Jeffrey Tamulevich, Community Development
Tim Burch, Community Health and Human Services
Kevin Kane, Municipal Court
Eric Anderson, City Attorney
Bill Greene, Internal Audit Office
Robert Baer, Municipal Budget Office
Tanya Chavez, Mayor and Council Relations
Wydale Holmes, Strategic Management an Innovation Office
Kara DeArrastia, City Clerk and Elections
Laura Calder, Financial Services
Jared Morris, Information Technology
Rebecca Strisko, Human Resources
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This section contains the independent auditor’s report, management’s
discussion and analysis, and basic financial statements. Also included are
financial statements for individual funds and a component unit for which
data is not provided separately in the basic financial statements, and
other useful supplementary information.
Financial Section
17
Independent Auditor’s Report
Honorable Mayor and Members of the City Council
City of Tempe, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Tempe, Arizona
(City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Tempe, Arizona, as of June 30, 2025, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of City of Tempe, Arizona, and to meet our other ethical
responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Change in Accounting Principle
As described in Note 1 to the financial statements, the City implemented the provisions of GASB
Statement No. 101, Compensated Absences, for the year ended June 30, 2025. In addition, the City also
implemented GASB Statement No. 102, Certain Risk Disclosures. Our opinion is not modified with respect
to these matters.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements. In performing an audit in accordance with generally accepted auditing
standards and Government Auditing Standards, we:
•
Exercise professional judgment and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
•
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, budgetary comparison information, net pension liability information, and other
postemployment benefit plan information, as listed in the table of contents, be presented to supplement
the basic financial statements. Such information is the responsibility of management and, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. 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
19
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements
and Schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section but does not include the basic financial
statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover
the other information and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on other work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 15,
2025, on our consideration of City of Tempe, Arizona’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City of Tempe, Arizona’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering City of Tempe, Arizona’s internal control over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
December 15, 2025
20
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Tempe’s (the City) Annual Comprehensive Financial Report presents a narrative
overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. Readers
are encouraged to consider the information presented here in conjunction with additional information that has
been furnished in the letter of transmittal.
FINANCIAL HIGHLIGHTS
•
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows
of resources this fiscal year by $1.1 billion (net position). This is a increase of $24.7 million over the
prior year’s net position primarily due to a $21.4 million increase in settlement revenues in Waster
and Wastewater fund from manufacturers and distributors of products containing PFAS (per- and
polyfluoroalkyl substances). Of the City’s net position, $308.0 million (unrestricted net position) may
be used to meet the government’s ongoing obligations to citizens and creditors.
•
For the fiscal year ended June 30, 2025, the City’s governmental activities revenues increased by
$17.9 million to $535.9 million. This was primarily due an increase of $27.7 million in capital grants
and contributions and an increase of $7.4 million in operating grants and contribution. Offset by a
decrease of $7.2 million in intergovernmental revenues and decrease of $7.5 million in sales tax and
27.7 million increase in capital grants and contributions. Expenses increased by $39.3 million mainly
due to an increase in public works of $25.9 million and $10.4 million in community enrichment.
•
At June 30, 2025, the City’s governmental funds reported combined ending fund balances of $355.2
million. Approximately 65% of this total amount ($229.6 million) was for spending at the government’s
discretion (committed, assigned, or unassigned).
•
At June 30, 2025, total fund balance for the General Fund was $158.9 million, which represents a
decrease of $6.6 million over the prior year’s fund balance. Revenues decreased by $10.5 million, this
is primarily due to a $7.4 million decrease in state and other agency revenues. Expenditures
increased by $17.2 million, mainly due to increase of $10.3 million in community enrichment and $9.7
million in public safety.
•
At June 30, 2025, the City’s enterprise funds reported combined total net position of $310.7 million,
and total unrestricted net position of $184.7 million. Of this total, $172.1 million of the unrestricted net
position was in the Water and Wastewater Fund.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of three components: (1) Government-wide financial
statements, (2) Fund financial statements, and (3) Notes to the financial statements. This report also contains
required supplementary information and other supplementary information in addition to the basic
financial statements themselves.
21
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, liabilities and deferred inflows/
outflows of resources, 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 is improving or
deteriorating.
The statement of activities presents information showing how the City’s net position changed during the
current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future periods, such as revenues pertaining
to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave.
The government-wide 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 public safety, general government, transportation, criminal justice, and community
enrichment. The business-type activities of the City include water and wastewater, solid waste, and
emergency medical transportation.
Included within the government-wide financial statements are the operations of the Rio Salado Community
Facilities District. Although legally separate from the City, this component unit is blended with the primary
government (the City) because of its governance or financial relationships with the City.
FUND FINANCIAL STATEMENTS
The fund financial statements are designed to report information about groupings of related accounts that are
used to maintain control over resources that have been segregated for specific activities or objectives. The
City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements. All the funds of the City can be divided into the following three categories:
governmental, proprietary, and fiduciary.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. Most of the City’s
basic services are reported in governmental funds. These statements, however, focus on near-term
inflows and outflows of spendable resources and spendable resources available at the end of the
fiscal year. Such information may be useful in determining what financial resources are available in
the near future to finance the City’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. 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.
Other than the General Fund, the City maintains several individual governmental funds organized
according to their type (special revenue, debt service, and capital projects). Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement of
revenues, expenditures and changes in fund balances for the General Fund, Transit Special Revenue
Fund, General Obligation Debt Service Fund, and the Community Development Capital Projects Fund
which are all considered to be major funds. Data from the remaining governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of the non-major
governmental funds is provided in the form of combining statements elsewhere in this report.
The City’s annual budget is the legally adopted expenditure control document of the City. The legally
adopted budget is at a citywide level that includes all Governmental and Enterprise Funds. A budget
schedule at the citywide level is presented in the Required Supplementary Information Section. The
22
schedule compares the original adopted budget, the budget as amended throughout the year, and the
actual expenditures prepared on a budgetary basis.
Proprietary funds. Proprietary funds are generally used to account for services provided to
customers to whom the City charges user fees that are designed to fully recover the cost of providing
the service. Proprietary fund statements provide the same type of information shown in the
government-wide financial statements, only in more detail. The City maintains the following two types
of proprietary funds:
•
Enterprise funds are used to report the same functions presented as business-type activities in
the government-wide financial statements. The City uses enterprise funds to account for its water
and wastewater, solid waste, and emergency medical transportation operations. Water and
Wastewater fund and Solid Waste fund were considered major funds of the City.
•
Internal Service funds are used to report activities that provide supplies and services for certain
City programs and activities. The City uses internal service funds to account for its employee and
retiree health insurance programs, its workers’ compensation claims, and its risk management
services including general liability and property liability claims. Because these services
predominantly benefit governmental rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements. The internal service
funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of combining
statements elsewhere in this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the City. The City uses a fiduciary fund to account for other post-employment benefits
provided to retirees. 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.
NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements.
COMBINING STATEMENTS
The combining statements referred to earlier in connection with non-major governmental funds and internal
service funds are presented immediately following the Notes to the Financial Statements.
23
GOVERNMENT-WIDE STATEMENTS FINANCIAL ANALYSIS
Governmental
Activities
Business-type
Activities
Total
2025
2024
2025
2024
2025
2024
Assets
Current and other assets
$
964,737,074 $ 1,019,021,461 $
308,354,953 $
265,901,988 $ 1,273,092,027 $ 1,284,923,449
Capital assets, net
948,402,787
868,049,848
476,420,929
438,876,051
1,424,823,716
1,306,925,899
Total assets
1,913,139,861
1,887,071,309
784,775,882
704,778,039
2,697,915,743
2,591,849,348
Total deferred outflows of resources
82,492,260
84,797,039
8,680,525
7,750,221
91,172,785
92,547,260
Liabilities
Long-term liabilities
1,030,342,121
1,007,315,901
423,776,265
382,079,031
1,454,118,386
1,389,394,932
Other liabilities
132,487,899
122,274,453
56,702,499
51,129,833
189,190,398
173,404,286
Total liabilities
1,162,830,020
1,129,590,354
480,478,764
433,208,864
1,643,308,784
1,562,799,218
Total deferred inflows of resources
43,364,150
43,935,387
2,233,060
2,162,943
45,597,210
46,098,330
Net position
Net investment in capital assets
463,290,704
441,875,868
83,745,808
102,002,361
547,036,512
543,878,229
Restricted
202,785,386
160,088,789
42,320,738
36,091,495
245,106,124
196,180,284
Unrestricted
123,361,861
196,377,950
184,678,037
139,062,597
308,039,898
335,440,547
Total net position
$
789,437,951 $
798,342,607 $
310,744,583 $
277,156,453 $ 1,100,182,534 $ 1,075,499,060
ANALYSIS OF NET POSITION
As noted earlier, net position may serve as a useful indicator of a government’s financial position. For the City,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.1 billion
and $1.1 billion as of June 30, 2025 and 2024, respectively.
The largest portion of the City’s net position reflects its investment in capital assets (i.e. land, buildings,
infrastructure, improvements, machinery and equipment and construction in progress) less any related debt
used to acquire those assets. The net position invested in capital assets, net of related debt was $547.0
million and $543.9 million at June 30, 2025 and 2024, respectively. These totals represent 49.7% and 50.6%
of total net position at June 30, 2025 and 2024, respectively. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated
for these liabilities.
An additional portion of the City’s net position represents resources that are subject to external restriction on
their usage. The net position subject to external restrictions was $245.1 million (22.3% of total net position) at
June 30, 2025. At June 30, 2024 restricted net position was $196.2 million (18.2% of total net position). The
remaining balance of net position is unrestricted and may be used to meet the government’s ongoing
obligations to citizens and creditors. The total balance of unrestricted net position was $308.0 million (28.0%
of total net position) and $335.4 million (31.2% of total net position) at June 30, 2025 and 2024, respectively.
At the end of the current fiscal year, the City reported positive balances in all three categories of net position
for the governmental as well as for the business-type activities as a whole. The same situation held true for
the previous fiscal year.
24
ANALYSIS OF CHANGE IN NET POSITION
The City’s total net position increased by $24.7 million during the current fiscal year. These changes in net
position are explained in the governmental and business-type activities discussion below.
Governmental
Activities
Business-type
Activities
Total
2025
2024
2025
2024
2025
2024
Revenues
Program revenues:
Charges for services
$
58,519,698 $
57,137,093 $
139,408,950 $
128,150,321 $
197,928,648 $
185,287,414
Operating grants and
contributions
46,515,358
39,108,463
-
-
46,515,358
39,108,463
Capital grants and
contributions
39,575,665
11,887,956
1,727,532
-
41,303,197
11,887,956
General revenues:
Sales taxes
213,223,843
220,706,908
-
-
213,223,843
220,706,908
Intergovernmental revenue,
unrestricted
93,675,840
100,839,012
-
-
93,675,840
100,839,012
Property taxes
65,921,804
63,045,369
-
-
65,921,804
63,045,369
Franchise taxes
3,280,977
3,255,826
-
-
3,280,977
3,255,826
Unrestricted investment
earnings (loss)
8,891,379
9,260,955
6,706,859
7,175,090
15,598,238
16,436,045
Miscellaneous
6,254,246
12,670,187
4,171,419
730,341
10,425,665
13,400,528
Unusual and infrequent item
-
-
21,430,862
-
21,430,862
-
Total revenues
535,858,810
517,911,769
173,445,622
136,055,752
709,304,432
653,967,521
Expenses
General government
50,627,498
52,332,996
-
-
50,627,498
52,332,996
Public safety
185,040,405
181,268,814
-
-
185,040,405
181,268,814
Public works
145,107,262
119,214,368
-
-
145,107,262
119,214,368
Criminal justice
5,883,706
5,769,865
-
-
5,883,706
5,769,865
Community enrichment
137,200,088
126,782,592
-
-
137,200,088
126,782,592
Interest on long-term debt
20,749,765
19,891,073
20,749,765
19,891,073
Water and wastewater
-
-
114,111,095
92,323,601
114,111,095
92,323,601
Solid waste
-
-
19,985,620
20,428,137
19,985,620
20,428,137
Emergency medical
transportation
-
-
5,915,519
7,005,235
5,915,519
7,005,235
Golf course
-
-
-
172,560
-
172,560
Total expenses
544,608,724
505,259,708
140,012,234
119,929,533
684,620,958
625,189,241
Increase in net position before
transfers
(8,749,914)
12,652,061
33,433,388
16,126,219
24,683,474
28,778,280
Transfers
(154,742)
2,984,998
154,742
(2,984,998)
-
-
Change in net position
(8,904,656)
15,637,059
33,588,130
13,141,221
24,683,474
28,778,280
Net position- beginning
798,342,607
782,705,548
277,156,453
264,015,232
1,075,499,060
1,046,720,780
Net position- ending
$
789,437,951 $
798,342,607 $
310,744,583 $
277,156,453 $
1,100,182,534 $
1,075,499,060
Governmental activities. The governmental net position decreased by $8.9 million for the fiscal year ended
June 30, 2025 compared to a $15.6 million increase in net position for the fiscal year ended June 30, 2024.
Overall, revenues increased by $17.9 million or 3.5%, and expenses increased by $39.3 million or 7.8%
compared to the fiscal year ended June 30, 2024.
The key factors contributing to the change in net position compared to the prior year are as follows:
•
Capital grants and contributions increased by $27.7 million from $10.8 million ARPA grant from Maricopa
County and $7.3 million from HOME for the purchase of Apache Shopping Center and $9.6 million capital
contribution for Angel’s stadium.
•
Intergovernmental revenues decreased by $7.2 million or 7.1% due to lower state-shared income tax
distributions and a slowdown in taxable sales activity impacting state-shared revenues.
25
•
Total program expenses increased by $39.3 million due primarily to increased maintenance and repair
expenditures in public works of $25.9 million and in community enrichment of $10.4 million.
The following charts, over the next few pages, illustrate the City’s governmental expenses and program revenues
by function and its revenues by source for the current fiscal year:
Fiscal Year 2025 Expenses and Program Revenues
Governmental Activities
Expenses
Program Revenues
Public safety
General government
Public works
Criminal justice
Community enrichment
Interest on long-term debt
–
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
A comparison of expenses by function and the
percentage of total expenses for the largest
functions are presented in the chart. As stated
earlier, total expenses for the City’s governmental
activities increased from the prior year by $39.3
million
(7.8%).
The
main
function
which
experienced the increase was public works totaling
$25.9 million and community enrichment totaling
$10.4 million.
Fiscal Year Ended
June 30, 2025
June 30, 2024
General government
50,627,498
9.3
52,332,996
10.4
Public safety
$ 185,040,405
34.0%
$ 181,268,814
35.9%
Public works
145,107,262
26.6
119,214,368
23.6
Criminal justice
5,883,706
1.1
5,769,865
1.1
Community enrichment
137,200,088
25.2
126,782,592
25.1
General revenues such as sales taxes, property
taxes unrestricted investment earnings,
intergovernmental revenue- unrestricted,
miscellaneous and other and franchise taxes are
not shown by program but are effectively used to
support program activities citywide.
Fiscal Year Ended
June 30, 2025
June 30, 2024
Sales taxes
$ 213,223,843
39.8%
$ 220,706,908
50.8%
Intergovernmental
revenue-unrestricted
93,675,840
17.5
100,839,012
13.3
Property taxes
65,921,804
12.3
63,045,369
14.5
Franchise taxes
3,280,977
0.6
3,255,826
0.6
Unrestricted investment
earnings (loss)
8,891,379
1.7
9,260,955
1.4
Miscellaneous and other
6,254,246
1.2
12,670,187
2.4
26
For governmental activities overall, without regard to program, a comparison of the largest general revenues
and their percentage of total revenues (excluding transfers) is presented. As stated previously,
intergovernmental revenues experienced a decline of (7.1)% due to lower state-shared income tax
distributions and a slowdown in taxable sales activity impacting state-shared revenues. A summary of the
general revenues is below.
Fiscal Year 2025 Revenues by Source - Governmental Activities
Sales taxes, 54.5%
Intergovernmental revenue, unrestricted, 24.0%
Property taxes, 16.8%
Franchise taxes, 0.8%
Miscellaneous and other, 3.9%
Business-type activities. The net position of the City’s business-type activities increased by $33.6 million for
the year ended June 30, 2025 compared to an increase of $13.1 million for the year ended June 30, 2024.
The total business-type activities program and general revenues increased by $37.4 million to $173.4 million
mainly due to the PFAS settlement revenue of $21.4 million revenue recognized in the current year.
The largest of the City’s business-type activities, Water and Wastewater, had an increase of $14.9 million in
operating revenues and $20.0 million increase in operating expenses. Solid Waste fund and the remaining
non-major enterprise fund’s net change in net position remained comparable to prior year.
FUND STATEMENTS FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
GOVERNMENTAL FUNDS
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of resources that are available for spending. Such information is useful in assessing the City’s
financing requirements. Types of governmental funds reported by the City include the General Fund, Special
Revenue Funds, Debt Service Funds and Capital Project Funds.
Fund balance is reported in classifications that comprise a hierarchy based on the extent to which the City is
bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The
classifications of fund balance are Non-spendable, Restricted, Committed, Assigned, and Unassigned. The
amount that represents available resources for spending is the total of committed, assigned, and unassigned.
This unrestricted fund balance may serve as a useful measure of a government’s net resources available for
spending at each fiscal year end.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $355.2 million, a decrease of $51.5 million from the prior year. Approximately $229.6 million of this
total amount pertained to the categories of committed, assigned or unassigned, all of which is available for
spending at the City’s discretion.
27
The remainder of fund balance contains two components: non-spendable and restricted. Non-spendable fund
balance includes amounts that cannot be spent as they are not in a spendable form. At June 30, 2025, the
non-spendable fund balance included amounts for inventories ($0.8 million), prepaid items ($1.8 million) and a
lease receivable reserve ($1.5 million). Restricted fund balances are amounts that have externally (outside the
City) enforceable limitations or enabling legislation (City Charter) that govern their use. The restricted portion
of fund balance, totaling $121.5 million consists primarily of amounts for debt service ($2.2 million), capital
projects ($89.7 million), highway user revenue ($9.8 million), development impact fees ($10.4 million), and
other ($9.4 million).
The General Fund is the main operating fund of the City. At the end of the current fiscal year, the total fund
balance was $158.9 million, with $1.7 million in non-spendable fund balance. The remaining $157.3 million is
available for spending at the City’s discretion. As a measure of the General Fund’s liquidity, it may be useful to
compare fund balances to total fund revenues.
The total fund balance in the City’s General Fund decreased in the current year by $6.6 million compared to a
prior year net decrease of $6.1 million.
Arizona state shared revenues are collected by the state for statewide sales taxes, income taxes and auto in-
lieu taxes (taxes levied on the value of a vehicle). These revenues are distributed to local municipalities based
on population. Decreased collections by the State of Arizona resulted in decreased revenues for
intergovernmental revenues, unrestricted for the City.
Total revenues decreased by $10.5 million
((3.2)%) from the prior year. This was due to
decrease in state and other agency revenues of
$7.4 million.
Fiscal Year Ended
June 30, 2025
June 30, 2024
Revenues
$ 315,636,570
$ 326,181,510
Total fund balance
158,947,022
50.4 %
165,593,133
58.9 %
Unassigned fund balance
116,399,149
36.9
120,298,222
43.4
Expenditures increased by $17.2 million (5.8%) primarily due to increase in public safety spending of $9.7
million and $10.3 million in community enrichment.
The Transit Special Revenue Fund is used to account for revenues and expenditures utilized to provide
related transit services. Revenues decreased by $1.3 million ((1.7)%) from the prior year in state taxes. Total
Transit Special Revenue Fund expenditures increased by $16.4 million (27.5%) due primarily to $16.6 million
increase in fixed route expenditures.
At June 30, 2025, the Transit Special Revenue Fund special assessment amounts due totaling $8.8 million, is
related to special assessment debt previously issued to finance the Tempe Streetcar project. The City has
assessed and is responsible for the collection of assessments secured by a lien on the benefiting properties
from the streetcar project.
The fund balance totaled $102.5 million at June 30, 2025, compared to a $110.4 million fund balance at June
30, 2024. The fund balance decreased $7.9 million in the current year as compared to prior year.
The General Obligation Debt Service Fund accounts for the accumulation of resources and payments of
general obligation debt. Total fund balance decreased $5.0 million from $6.9 million at June 30, 2024 to $1.9
million at June 30, 2025, which was the amount of unspent secondary property taxes, used for interest,
principal redemption and related fees for General Obligation debt service.
The Community Development Capital Projects Fund accounts for the acquisition, reconstruction, and
renovation of City buildings housing municipal departments, human service programs and certain general
governmental projects. Total expenditures of $60.0 million represents a decrease of $1.5 million from the prior
fiscal year due primarily to capital acquisitions. Total revenues increased by $2.4 million due to decrease in
federal and state grants.
Other Non-Major Governmental Funds had a fund balance decrease of $28.5 million to $87.7 million at the
end of the fiscal year.
28
PROPRIETARY FUNDS
The City’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. At the end of the fiscal year indicated, the total net positions for the proprietary
funds were as follows:
Fiscal Year Ended
June 30, 2025
June 30, 2024
Water and Wastewater Fund
$ 289,146,477 $ 260,765,239
Solid Waste Fund
18,778,212
14,079,367
Non-Major Enterprise Fund
2,819,894
16,391,214
The Water and Wastewater Fund accounts for the provision of water and sewer services to the City and the
adjoining Town of Guadalupe. The fund experienced an increase in total net position of $28.4 million for the
fiscal year ended June 30, 2025. This primarily due to the one time PFAS settlement revenue recorded in
fiscal year 2025 in the amount of $21.4 million. In addition Charges for services increased by $11.5 million
primarily due to increase in utility consumption. Expenses increased by $17.8 million in fees and services.
Total net operating income was $11.5 million, a decrease of $5.0 million from the prior year.
The Solid Waste Fund accounts for the provision of solid waste service to the City. The fund experienced an
increase in total net position of $4.7 million for the fiscal year ended June 30, 2025. Total operating revenues
and expenses were comparable to the prior fiscal year. Solid Waste fund issued 2025 Excise Tax Revenue
Bond during the year in the amount of $18,880,000 to fund the new solid waste building at the Tempe
Municipal Operating Center.
The Non-major enterprise fund emergency medical transportation fund. The total fund net position
increased by $0.5 million during the fiscal year ended June 30, 2025 compared to $2.3 million in fiscal year
ended June 30, 2024. Total operating revenues and expenses were comparable to the prior fiscal year.
BUDGET HIGHLIGHTS
The City’s annual budget is the legally adopted expenditure control document of the City. The legally adopted
budget is at a citywide level that includes all Governmental and Enterprise Funds. A budget schedule at the
citywide level is presented in the Required Supplementary Information Section. The schedule compares the
original adopted budget, the budget as amended throughout the year, and the actual expenditures prepared
on a budgetary basis.
Operating budget actual revenues were less than budgetary estimates by $291.7 million and actual
expenditures were less than budgetary estimates by $343.6 million . The capital budget reported $512.7
million less than estimated budget.
29
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
The City’s capital assets for its governmental and business-type activities as of June 30, 2025 were $1.4
billion (net of accumulated depreciation). Capital assets include land, buildings, infrastructure, improvements,
machinery and equipment, SBITAs, Leases, and construction in progress. The total increase in the City’s
capital assets for the current fiscal year was $117.9 million. The tables below reflect the capital assets at the
end of the fiscal year June 30, 2025 and 2024, respectively.
Governmental Activities
Business-type Activities
Total
2025
2024
2025
2024
2025
2024
Land
$ 122,545,757 $
95,915,313 $
6,330,829 $
6,330,829 $ 128,876,586 $ 102,246,142
Construction in progress
74,679,340
104,767,994
57,557,821
26,892,100
132,237,161
131,660,094
Buildings
158,278,030
126,321,244
13,878,710
15,100,509
172,156,740
141,421,753
Infrastructure
328,567,180
324,835,057
241,725,006
231,533,002
570,292,186
556,368,059
Improvements
209,751,475
164,853,370
133,588,855
134,486,326
343,340,330
299,339,696
Machinery and equipment
50,758,957
47,311,284
22,894,700
24,172,250
73,653,657
71,483,534
SBITA Assets
3,244,222
3,228,932
445,008
361,035
3,689,230
3,589,967
Lease Assets
577,827
816,654
-
-
577,827
816,654
Total
$ 948,402,788 $ 868,049,848 $ 476,420,929 $ 438,876,051 $ 1,424,823,717 $ 1,306,925,899
Major capital asset events during the current fiscal year included the following:
Governmental Activities
•
The increase in governmental capital assets of $80.4 million is due primarily to the increase in
construction in progress of $38.6 million and completed construction in progress of $68.2 million
transferred into depreciable assets net with current year depreciation expense of $57.5 million.
Business-type Activities
•
The increase in enterprise capital assets of $37.5 million is due primarily to increase in completed
construction in progress of $42.5 million and $10.2 million transferred into depreciable assets then
offset by depreciation of $32.6 million
For government-wide financial statement presentation, all depreciable capital assets are depreciated from
acquisition date to the end of the current fiscal year. Fund financial statements record capital asset purchases
as expenditures. Please refer to Note 8 of the Notes to the Financial Statements for further information
regarding capital assets.
30
DEBT ADMINISTRATION
At the end of the current fiscal year, the City had total long-term obligations outstanding of $1.1 billion, which
is an increase of $59.0 million over the prior fiscal year.
Governmental Activities
Business-type Activities
Total
2025
2024
2025
2024
2025
2024
General obligation bonds
$ 323,370,000 $ 271,690,000 $ 234,115,000 $ 203,735,000 $
557,485,000 $
475,425,000
Special assessment bonds
7,170,000
8,755,000
-
-
7,170,000
8,755,000
Excise tax obligations
52,455,000
66,128,000
52,020,000
37,557,000
104,475,000
103,685,000
Revenue obligations
-
-
61,245,000
64,120,000
61,245,000
64,120,000
Premium on debt payable
31,974,375
30,392,466
37,001,987
35,884,021
68,976,362
66,276,487
Certificates of participation
297,190,000
317,570,000
-
-
297,190,000
317,570,000
HUD Section 108 loan
-
549,000
-
-
-
549,000
WIFA loan
-
-
3,743,725
4,631,315
3,743,725
4,631,315
Leases
616,437
853,724
-
-
616,437
853,724
SBITA
2,460,588
2,613,840
444,387
342,455
2,904,975
2,956,295
Total debt payable
$ 715,236,400 $ 698,552,030 $ 388,570,099 $ 346,269,791 $
1,103,806,499 $
1,044,821,821
On June 11, 2025, the City issued Tax-Exempt $126,485,000 Series 2025 General Obligation Bonds were
issued with maturities ranging from $3,790,000 to $10,990,000 to fund various project costs related to streets,
public safety, parks, and water/wastewater. The bond matures on 7/1/2045 with interest rate of 5.0%. The
Series 2025 General Obligation Bonds were publicly sold and are repaid from the HURF Fund, General
Obligation Debt Service Fund and Water and Wastewater Fund.
On June 12, 2025, the City issued $18,880,000 Series 2025 Excise Tax Revenue Obligation Bond with
maturities ranging from $520,000 to $1,445,000 to fund solid waste capital projects. The bond matures on
7/1/2045 with interest rate of 5.0%
The City has assessed and is responsible for the collection of assessments secured by a lien on the assessed
properties related to transit excise tax revenue obligations issued in the amount of $10.5 million, for which the
primary source of repayment is the assessments levied against the benefiting properties for the additional
streetcar capital improvement project costs. At June 30, 2025, the Transit Fund special assessments
receivable, related to the obligations, on the assessed properties totaled $10.6 million. As development
occurs, additional benefiting properties will be assessed in an amount not to exceed $13.0 million for all
assessed properties.
The City’s total net general obligation bonded debt (total bonded debt, including the enterprise funds and
Water Infrastructure Finance Authority loans, general obligation premiums less debt service reserves)
outstanding increased by $59.0 million from the fiscal year ended June 30, 2024 to the fiscal year ended
June 30, 2025. The ratio of net general obligation bonded debt for governmental purposes to taxable valuation
and the amount of bonded debt per capita are useful indicators of the City’s debt position to management,
citizens, oversight bodies and investors. Additional information is located in the Statistical Section (Exhibit
S-15). A comparison of these indicators follows:
Fiscal Year Ended
June 30, 2025
June 30, 2024
Net general bonded debt
$ 612,216,854
$ 523,015,404
Net general bonded debt per capita
3,220
2,755
Ratio of net general bonded debt to total assessed value
23.8%
21.1%
Debt service secondary tax rate per $100 of taxable valuation
$
1.48
$
1.48
31
The State constitution imposes certain debt limitations on the City of 6% and 20% of the assessed valuation of
the City. The City’s available debt margin at June 30, 2025 is $526.2 million under the 20% capacity and
$166.8 million under the 6% limitation. Additional information on the statutory debt limitations may be found in
Note 9 of the Notes to the Financial Statements and the Statistical Section (Exhibit S-17) of this report.
During the year, the City maintained ratings on its outstanding general obligation bonds of AAA from S&P
Global Ratings and AAA from Fitch Ratings.
Additional information on the City’s long-term debt can be found in Note 9 of the Notes to the Financial
Statements.
ECONOMIC FACTORS
The City of Tempe enters fiscal year 2025-26 with overall financial conditions that remain stable, supported by
a diversified local economy, prudent reserve management, and continued long-range financial planning. While
the City’s economic foundation remains strong, the outlook for the coming year reflects a moderation in
revenue growth, legislative changes affecting municipal revenues, and continued attention to balancing
service delivery with sustainable expenditure levels.
Tempe’s economy continues to perform well relative to the region and the state. Unemployment remains low
at 3.7 percent, with an estimated 183,000 jobs within the City’s employment base. Major employers, such as
Arizona State University, State Farm, JPMorgan Chase, and Amazon, continue to anchor the local economy
and support a diverse range of industries, including education, finance, healthcare, and logistics. Construction
and development activity remain strong contributors to growth. In FY 2024-25, the City issued 2,297 permits
valued at approximately $837 million, reflecting continued investment in multifamily, commercial, and mixed-
use projects. These trends, together with Tempe’s strategic location and skilled workforce, provide a solid
foundation for long-term fiscal stability and business confidence.
Although the local economy remains resilient, the city has adjusted its revenue projections to reflect slower
growth in taxable sales and the impact of recent legislative actions. The elimination of the residential rental
sales tax, effective January 2025, is expected to result in an estimated $21 million annual revenue reduction
across all funds, primarily within the General Fund and Transit Fund. Modest decreases are also anticipated in
state-shared revenues due in part to the incorporation of the new City of San Tan, which affects statewide
distribution formulas. Interest earnings, which increased through FY 2024 due to higher short-term rates, are
expected to moderate following two Federal Reserve rate reductions in late 2025. Taken together, these
factors create a more cautious but manageable revenue outlook for FY 2026.
The adopted FY 2025-26 budget totals $1.69 billion, including $852.8 million in operations and $837.2 million
in capital improvements. The five-year Capital Improvements Program totals $1.96 billion, emphasizing
infrastructure renewal, public safety, housing, transportation, and sustainability initiatives. Major FY 2026
projects include $123 million for pavement preservation and roadway improvements, $34 million for
Downtown Mill Avenue enhancements, $30 million for a new public-safety facility and Fire Station #8 in the
Novus corridor, $32 million for affordable-housing projects, $26 million for a new police substation, and $9.5
million for cybersecurity and facility-security upgrades. Personnel costs remain the City’s largest expenditure
category, and the budget includes funding for citywide market adjustments, implementation of the non-sworn
classification and compensation study, and public-safety step plans designed to sustain competitive pay and
workforce stability.
To maintain balance under evolving conditions, the City continues to apply conservative budgeting practices,
focus on essential service delivery, and align ongoing commitments with long-term revenue trends. Through
proactive financial monitoring and prudent use of reserves consistent with Council policy, Tempe maintains its
General Fund balance within the targeted 20-to-30 percent range. Enterprise operations—including Water/
Wastewater and Solid Waste—remain financially sound, supported by planned rate adjustments and robust
reserve positions. The City’s financial forecasts assume moderate economic growth and no recession, while
staff continue to monitor potential state and federal actions—such as the proposed federal deduction for tips
and overtime—that could modestly influence future revenue streams.
While revenue growth is expected to remain measured through FY 2025-26, Tempe’s strong economic base,
sustained capital investment, and disciplined financial management continue to provide a solid foundation for
the City’s long-term fiscal health. Through conservative forecasting, adherence to financial policies, and a
commitment to innovation and service excellence, the City remains well-positioned to maintain core services,
invest in critical infrastructure, and advance Council priorities while navigating an evolving economic
landscape.
32
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, city council, customers, investors and
creditors with a general overview of the City’s finances. If you have questions about this report or need
additional information, contact:
City of Tempe
Financial Services
Accounting
20 E. Sixth Street
Tempe, AZ 85281
480.350.8256
33
City of Tempe, Arizona
34
Statement of Net Position
June 30, 2025
City of Tempe, Arizona
Governmental
Activities
Business-type
Activities
Total
Assets
Pooled cash and investments
$
405,262,103
$
80,215,492
$
485,477,595
Receivables:
Taxes
24,356,505
-
24,356,505
Accounts, net
24,933,453
38,336,330
63,269,783
Accrued interest
3,333,268
993,231
4,326,499
Special assessment
16,456,669
-
16,456,669
Leases
22,283,851
-
22,283,851
Due from other governments
5,667,799
1,727,533
7,395,332
Inventories
830,282
1,546,003
2,376,285
Prepaid items
1,792,268
1,792,268
Restricted cash and investments
87,862,969
53,966,626
141,829,595
Capital improvement notes receivable
1,250,806
-
1,250,806
Net OPEB assets
4,651,593
874,196
5,525,789
Restricted joint venture construction deposit
-
41,446,542
41,446,542
Equity in joint venture
366,055,508
89,249,000
455,304,508
Non-depreciable capital assets
197,225,096
63,888,650
261,113,746
Depreciable assets (net)
751,177,691
412,532,279
1,163,709,970
Total assets
1,913,139,861
784,775,882
2,697,915,743
Deferred Outflows of Resources
Deferred charge on refundings
2,215,990
3,983,179
6,199,169
Deferred outflows from pensions
79,383,987
4,583,689
83,967,676
Deferred outflows from OPEB
892,283
113,657
1,005,940
Total deferred outflow of resources
82,492,260
8,680,525
91,172,785
Liabilities
Accounts payable
45,939,482
20,099,816
66,039,298
Deposits
3,289,857
1,274,597
4,564,454
Accrued expenses
10,704,888
1,039,223
11,744,111
Unearned revenue
4,002,282
345,832
4,348,114
Matured bonds payable
58,498,000
27,272,000
85,770,000
Interest payable
10,053,390
6,671,031
16,724,421
Net OPEB liabilities
77,259,387
9,662,022
86,921,409
Net pension liabilities
175,266,338
22,762,141
198,028,479
Long term liabilities due within one year
86,948,191
28,245,792
115,193,983
Long term liabilities due more than one year
690,868,205
363,106,310
1,053,974,515
Total liabilities
1,162,830,020
480,478,764
1,643,308,784
Deferred Inflows of Resources
Deferred inflows from leases
20,813,854
-
20,813,854
Deferred inflows from PPP
6,024,208
-
6,024,208
Deferred inflows from refundings
1,120,955
-
1,120,955
Deferred inflows from pensions
10,295,860
1,547,446
11,843,306
Deferred inflows from OPEB
5,109,273
685,614
5,794,887
Total deferred inflow of resources
43,364,150
2,233,060
45,597,210
Net Position
Net investment in capital assets
463,290,704
83,745,808
547,036,512
Restricted for:
Capital projects
67,594,078
-
67,594,078
Debt service
50,753,142
-
50,753,142
Transportation
70,364,417
-
70,364,417
OPEB
4,651,593
874,196
5,525,789
Other
9,422,156
-
9,422,156
Joint venture
-
41,446,542
41,446,542
Unrestricted
123,361,861
184,678,037
308,039,898
Total net position
$
789,437,951
$
310,744,583
$
1,100,182,534
The notes to the financial statements are an integral part of this statement.
35
Statement of Activities
For the fiscal year ended June 30, 2025
City of Tempe, Arizona
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants
and
Contributions
Governmental
Activities
Business-type
Activities
Total
Functions
Governmental activities:
General government
$ 50,627,498
$
4,900,088
$
733,384
$
359,315
$ (44,634,711) $
-
$
(44,634,711)
Public safety
185,040,405
2,022,890
8,348,109
1,940,519
(172,728,887)
-
(172,728,887)
Public works
145,107,262
19,298,315
6,595,944
4,956,660
(114,256,343)
-
(114,256,343)
Criminal justice
5,883,706
1,312,040
59,903
-
(4,511,763)
-
(4,511,763)
Community enrichment
137,200,088
30,986,365
30,778,018
32,319,171
(43,116,534)
-
(43,116,534)
Interest on long-term debt
20,749,765
-
-
-
(20,749,765)
-
(20,749,765)
Total governmental activities
544,608,724
58,519,698
46,515,358
39,575,665
(399,998,003)
-
(399,998,003)
Business-type activities:
Water and wastewater
114,111,095
110,549,161
-
1,727,532
-
(1,834,402)
(1,834,402)
Solid waste
19,985,620
22,487,015
-
-
-
2,501,395
2,501,395
Emergency medical
t
t ti
5,915,519
6,372,774
-
-
-
457,255
457,255
Golf course
-
-
-
-
-
-
-
Total business-type activities
140,012,234
139,408,950
-
1,727,532
-
1,124,248
1,124,248
Total government
684,620,958
197,928,648
46,515,358
41,303,197
(399,998,003) $
1,124,248
$ (398,873,755)
General revenues:
Sales taxes
213,223,843
-
213,223,843
Intergovernmental revenue,
unrestricted
93,675,840
-
93,675,840
Property taxes
65,921,804
-
65,921,804
Franchise taxes
3,280,977
-
3,280,977
Unrestricted investment
earnings (loss)
8,891,379
6,706,859
15,598,238
Infrequent and unusual item
-
21,430,862
21,430,862
Miscellaneous
6,254,246
4,171,419
10,425,665
Transfers
(154,742)
154,742
-
Total general revenues and
transfers
391,093,347
32,463,882
423,557,229
Change in net position
(8,904,656)
33,588,130
24,683,474
Net position - beginning
798,342,607
277,156,453
1,075,499,060
Net position - ending
$ 789,437,951
$ 310,744,583
$ 1,100,182,534
The notes to the financial statements are an integral part of this statement.
36
Balance Sheet
Governmental Funds
June 30, 2025
City of Tempe, Arizona
General
Transit Special
Revenue
General
Obligation
Debt Service
Community
Development
Capital Projects
Non-Major
Governmental
Funds
Total
Governmental
Funds
Assets
Pooled cash and investments
$
149,916,374
$
94,510,443
$
-
$
15,718,717
$
106,282,351
$
366,427,885
Receivables:
Taxes
15,658,073
5,067,774
1,213,164
-
2,417,494
24,356,505
Accounts
14,126,748
2,795,687
-
-
7,588,437
24,510,872
Special assessments
-
8,757,254
-
-
7,699,415
16,456,669
Accrued interest
2,250,695
720,072
-
-
326,976
3,297,743
Leases
22,085,304
198,547
-
-
-
22,283,851
Due from other funds
6,132,707
-
-
-
-
6,132,707
Due from other governments
609,193
1,738,253
-
-
3,320,353
5,667,799
Inventories
166,780
-
-
-
663,502
830,282
Prepaid items
61,976
-
-
-
1,730,292
1,792,268
Restricted cash and investments
23,554,610
4,139,518
46,996,228
-
1,288,829
75,979,185
Capital improvement notes receivable
250,000
1,000,806
-
-
-
1,250,806
Total assets
$
234,812,460
$
118,928,354
$
48,209,392
$
15,718,717
$
131,317,649
$
548,986,572
Liabilities
Accounts payable
$
9,142,457
$
2,042,774
$
96,901
$
11,610,070
$
22,047,620
$
44,939,822
Deposits
3,067,352
305
-
9,008
213,190
3,289,855
Accrued expenditures
6,887,687
264,691
-
-
719,834
7,872,212
Due to other funds
-
-
5,358,489
-
713,605
6,072,094
Unearned revenue
272,349
-
-
-
4,155,855
4,428,204
Matured bonds payable
20,380,000
3,590,000
34,163,000
-
365,000
58,498,000
Matured interest payable
3,108,771
549,517
6,107,352
-
287,750
10,053,390
Total liabilities
42,858,616 -
6,447,287 -
45,725,742 -
11,619,078 -
28,502,854
135,153,577
Deferred Inflows of Resources
Unavailable revenue- courts
5,164,510
-
-
-
-
5,164,510
Unavailable revenue- PPP
6,024,208
-
-
-
-
6,024,208
Unavailable revenue- notes receivable
-
1,000,806
-
-
-
1,000,806
Unavailable revenue- other
862,861
-
-
-
7,199,163
8,062,024
Unavailable revenue- property tax
327,233
-
564,511
-
-
891,744
Unavailable revenue- special
assessments
-
8,757,254
-
-
7,948,212
16,705,466
Unavailable revenue- leases
20,628,010
185,844
-
-
-
20,813,854
Total deferred inflows of resources
33,006,822 -
9,943,904 -
564,511 -
- -
15,147,375
58,662,612
Fund Balances
Fund balances:
Non-spendable
1,686,050
12,703
-
-
2,393,794
4,092,547
Restricted
-
60,582,985
1,919,139
-
58,958,228
121,460,352
Committed
2,236,486
18,698,055
-
28,468,516
16,021,482
65,424,539
Assigned
38,625,337
23,761,057
-
-
38,693,082
101,079,476
Unassigned
116,399,149
(517,637)
-
(24,368,877)
(28,399,166)
63,113,469
Total fund balances
$
158,947,022
$
102,537,163
$
1,919,139
$
4,099,639
$
87,667,420
$
355,170,383
Total liabilities, deferred inflows of
resources, and fund balances
$
234,812,460
$
118,928,354
$
48,209,392
$
15,718,717
$
131,317,649
$
548,986,572
The notes to the financial statements are an integral part of this statement.
37
Reconciliation of the Balance Sheet to the Statement of Net Position
June 30, 2025
City of Tempe, Arizona
Fund balances- total governmental funds
$ 355,170,383
Amounts reported for the governmental activities in the statement of net position are different
because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
Governmental capital assets
2,077,728,956
Accumulated depreciation
(1,129,320,588)
948,408,368
The equity in joint venture is not a financial resource and, therefore, is not reported in
the funds.
366,055,508
Net OPEB assets (excluding internal service)
4,625,329
Other assets are not available to pay current-period expenditures and, therefore, are
offset by unavailable revenue.
Unavailable special assessment revenue
16,705,466
Unavailable tax and other revenue
9,330,981
Unavailable notes receivable revenue
1,000,806
Unavailable court revenue
5,164,510
32,201,763
Bond premiums and the deferred charge on refundings are not financial resources
and, therefore, are not reported in the funds.
Bond premiums
(31,974,375)
Deferred inflows from refundings
(1,120,955)
Deferred outflows from refundings
2,215,990
Deferred inflows related to pension and OPEB
(15,345,035)
Deferred outflows related pension and OPEB
80,135,876
33,911,501
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the governmental funds.
Compensated absences (excluding internal service)
(34,946,549)
Net pension liabilities (excluding internal service)
(174,582,474)
Other post employment benefits liabilities (excluding internal service)
(77,165,339)
Lease and SBITA liabilities
(3,077,025)
Bonds payable
(680,185,000)
(969,956,387)
Internal service funds are used by management to charge the costs of self insurance
to individual funds. The assets and liabilities of the internal service funds are reported
with governmental activities.
19,021,486
Net position of governmental activities
$ 789,437,951
The notes to the financial statements are an integral part of this statement.
38
City of Tempe, Arizona
39
General
Transit Special
Revenue
General
Obligation
Debt Service
Community
Development
Capital
Projects
Non-Major
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes:
Sales taxes
$
146,033,598
$
55,759,709
$
-
$
-
$ 11,151,942
$
212,945,249
Property taxes
25,945,633
-
40,068,125
-
-
66,013,758
Franchise taxes
3,559,571
-
-
-
-
3,559,571
Intergovernmental:
Federal agency
820,696
-
-
2,550,000
43,572,956
46,943,652
State and other agency
80,381,370
458,380
-
10,800,000
24,650,187
116,289,937
Property rental
3,905,804
406,327
-
-
-
4,312,131
Interest earnings- leases
716,912
1,611
-
-
-
718,523
Investment income (loss)
12,391,599
6,831,592
294,056
-
1,584,674
21,101,921
Charges for services
23,196,829
9,470,298
-
-
4,988,617
37,655,744
Fines and forfeitures
4,516,932
-
-
2
475,739
4,992,673
Other entities' participation
359,815
532,819
-
1,073
16,228,312
17,122,019
Special assessments
-
-
-
-
1,983,125
1,983,125
Licenses and permits
10,254,190
73
-
-
244,319
10,498,582
Miscellaneous
3,553,621
368,678
-
-
744,679
4,666,978
Total revenues
315,636,570
73,829,487
40,362,181
13,351,075
105,624,550
548,803,863
Expenditures:
Current:
General government
34,590,419
-
210,287
-
1,381,733
36,182,439
Public safety
155,823,235
-
-
-
10,259,494
166,082,729
Public Works
-
71,328,109
-
16,551,781
28,140,422
116,020,312
Criminal justice
5,582,029
-
-
-
331,112
5,913,141
Community enrichment
81,014,716
-
-
1,219,343
48,142,910
130,376,969
Debt service:
Principal
22,100,933
3,590,000
34,163,000
-
2,519,696
62,373,629
Interest
6,312,154
1,099,034
11,985,515
-
617,933
20,014,636
Bond issuance costs
14,120
5,700
502,080
-
2,350
524,250
Capital outlay
8,174,163
33,995
-
42,232,387
92,872,835
143,313,380
Total expenditures
313,611,769
76,056,838
46,860,882
60,003,511
184,268,485
680,801,485
Excess (deficiency) of revenues
over expenditures
2,024,801
(2,227,351)
(6,498,701)
(46,652,436)
(78,643,935)
(131,997,622)
Other financing sources (uses):
Transfers in
144,219
-
888,258
5,984,837
12,627,422
19,644,736
Transfers out
(11,202,611)
(5,704,480)
-
(131,822)
(5,067,084)
(22,105,997)
Issuance of debt
-
-
-
35,670,000
40,455,000
76,125,000
Premium on issuance of debt
-
-
633,017
1,730,000
1,947,000
4,310,017
Proceeds from sale of capital assets
1,036,390
22,898
-
-
157,837
1,217,125
Issuance of SBITA
1,351,090
-
-
-
-
1,351,090
Total other financing sources (uses)
(8,670,912)
(5,681,582)
1,521,275
43,253,015
50,120,175
80,541,971
Net change in fund balance
(6,646,111)
(7,908,933)
(4,977,426)
(3,399,421)
(28,523,760)
(51,455,651)
Fund balance at beginning of year
165,593,133
110,446,096
6,896,565
7,499,060
116,191,180
406,626,034
Fund balance at end of year
$
158,947,022
$
102,537,163
$
1,919,139
$
4,099,639
$ 87,667,420
$
355,170,383
The notes to the financial statements are an integral part of this statement.
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
40
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balance to the Statement of Activities
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Net change in fund balances- total governmental funds
$
(51,455,651)
Amounts reported for the governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities
the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Expenditures for capitalized assets
138,494,364
Depreciation and amortization expense
(57,533,376)
80,960,988
Certain revenues in the statement of activities do not provide current financial resources and,
therefore, are not reported as revenues in the governmental funds.
Property tax and charges for services revenue
(372,076)
Court revenue
(1,563,599)
Notes receivable
(356,585)
Special assessments received/recognized
(2,189,725)
Joint venture
(12,931,020)
(17,413,005)
Government funds report pension and OPEB contributions as expenditures. However, they are reported as
deferred outflows of resources in the Statement of Net Position. The change in the net pension liability,
adjusted for deferred pension items, is reported as pension expense in the Statement of Activities.
Current year pension and OPEB contributions
27,294,838
Pension and OPEB expense
(32,774,887)
(5,480,049)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term
liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the statement of net position. Also, government funds
report the effect of premiums and similar items when debt is issued, whereas these amounts are amortized in
the statement of activities.
Issuance of debt
(76,125,000)
Subscription-based information technology arrangements incurred
(1,351,090)
Premium on issuance of debt
(4,310,017)
Compensated absences
(891,425)
Principal payments made
62,373,629
Amortization of deferred inflow- refunding
186,825
Amortization of deferred outflow- deferred charges
(397,705)
Amortization of bond premium
2,728,108
(17,786,675)
Internal service funds are used by management to charge the costs of self-insurance to individual funds. The
adjustments for internal service funds close those funds by charging additional amounts to participating
governmental activities to completely cover the internal service funds' costs.
2,269,736
Change in net position of governmental activities
$
(8,904,656)
The notes to the financial statements are an integral part of this statement.
41
City of Tempe, Arizona
42
Business-type Activities - Enterprise Funds
Water and
Wastewater
Solid Waste
Non-Major
Emergency
Medical
Transportation
Total
Governmental
Activities-
Internal
Service Funds
Assets
Current assets:
Pooled cash and investments
$
78,811,174
$
-
$
1,404,318
$
80,215,492
$
38,834,217
Restricted cash and investments
33,966,626
20,000,000
-
53,966,626
11,883,784
Accounts receivable, net
32,744,793
1,456,482
4,135,055
38,336,330
422,581
Accrued interest receivable
882,870
102,594
7,767
993,231
37,303
Due from other funds
1,986,326
-
-
1,986,326
-
Due from other governments
1,727,533
-
-
1,727,533
-
Inventories
1,546,003
-
-
1,546,003
-
Total current assets
151,665,325
21,559,076
5,547,140
178,771,541
51,177,885
Non-current assets:
Net OPEB assets
550,876
196,535
126,785
874,196
26,264
Restricted joint venture construction deposit
41,446,542
-
41,446,542
-
Equity in joint venture
89,249,000
-
89,249,000
-
Capital assets:
Non-depreciable assets
43,538,772
20,349,878
-
63,888,650
-
Depreciable assets, net
401,642,720
9,897,908
991,651
412,532,279
43,114
Total capital assets, net
445,181,492
30,247,786
991,651
476,420,929
43,114
Total non-current assets
576,427,910
30,444,321
1,118,436
607,990,667
69,378
Total assets
728,093,235
52,003,397
6,665,576
786,762,208
51,247,263
Deferred Outflows of Resources
Deferred charge on refunding
3,983,179
-
-
3,983,179
-
Deferred outflows related to pensions
2,888,420
1,030,497
664,772
4,583,689
137,712
Deferred outflows related to OPEB
74,593
25,608
13,456
113,657
2,682
Total deferred outflows of resources
6,946,192
1,056,105
678,228
8,680,525
140,394
Liabilities
Current liabilities:
Accounts payable
17,101,746
2,947,431
50,639
20,099,816 2
999,299
Deposits
1,243,661
30,895
41
1,274,597
-
Accrued expenses
635,799
250,393
153,031
1,039,223
2,834,802
Due to other funds
-
1,986,326
-
1,986,326
60,613
Unearned revenue
345,832
-
-
345,832
-
Accrued interest payable
6,671,031
-
-
6,671,031
-
Matured bonds payable
27,272,000
-
-
27,272,000
-
WIFA loan payable
906,508
-
-
906,508
-
Claims liability
-
-
-
-
18,644,458
Compensated absence
704,171
282,126
50,020
1,036,317
61,645
SBITA liability
48,856
114,111
-
162,967
-
Bonds and loans payable
26,140,000
-
-
26,140,000
-
Total current liabilities
81,069,604
5,611,282
253,731
86,934,617
22,600,817
Non-current liabilities:
Claims Liability
-
-
-
-
8,823,502
Compensated Absence
1,186,183
475,244
84,259
1,745,686
103,842
Bonds and loans payable
337,971,989
20,269,999
-
358,241,988
-
WIFA loan payable
2,837,216
-
-
2,837,216
-
SBITA liability
163,536
117,884
-
281,420
-
Net OPEB liabilities
6,885,270
2,186,977
589,775
9,662,022
94,048
Net pension liabilities
14,343,603
5,117,345
3,301,193
22,762,141
683,864
Total non-current liabilities
363,387,797
28,167,449
3,975,227
395,530,473
9,705,256
Total liabilities
444,457,401
33,778,731
4,228,958
482,465,090
32,306,073
Deferred Inflows of Resources
Deferred inflows related to pensions
975,126
347,894
224,426
1,547,446
46,491
Deferred inflows related to OPEB
460,423
154,665
70,526
685,614
13,607
Total deferred inflows of resources
1,435,549
502,559
294,952
2,233,060
60,098
Net Position
Net investment in capital assets
75,012,444
7,741,713
991,651
83,745,808
43,114
Restricted
Joint venture
41,446,542
-
-
41,446,542
-
OPEB
550,876
196,535
126,785
874,196
26,264
Unrestricted
172,136,615
10,839,964
1,701,458
184,678,037
18,952,108
Total net position
$
289,146,477
$
18,778,212
$
2,819,894
$
310,744,583
$
19,021,486
The notes to the financial statements are an integral part of this statement.
Statement of Fund Net Position
Proprietary Funds
June 30, 2025
City of Tempe, Arizona
43
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Business-type Activities - Enterprise Funds
Water and
Wastewater
Formerly Non-
Major Solid
Waste
Non-Major
Emergency
Medical
Transportation
Total
Governmental
Activities-
Internal
Service Funds
Operating revenues:
Charges for services
$
110,549,161
$
22,487,015
$
6,372,774
$
139,408,950
$
55,239,729
Miscellaneous
3,925,638
17,771
4
3,943,413
56,006
Total operating revenues
114,474,799
22,504,786
6,372,778
143,352,363
55,295,735
Operating expenses:
Personnel services
16,952,882
5,743,321
3,724,290
26,420,493
-
Supplies and materials
2,149,396
720,039
936,424
3,805,859
-
Fees and services
53,588,904
11,187,535
939,739
65,716,178
55,763,360
Depreciation and amortization
30,272,450
2,053,408
315,066
32,640,924
5,580
Total operating expenses
102,963,632
19,704,303
5,915,519
128,583,454
55,768,940
Operating income
11,511,167
2,800,483
457,259
14,768,909
(473,205)
Non-operating revenues (expenses):
Investment income
5,836,556
819,515
50,788
6,706,859
428,973
Interest and fiscal fees
(11,147,463)
(281,317)
-
(11,428,780)
-
Settlement revenue
21,430,862
-
-
21,430,862
-
Grant from federal agency
1,727,532
-
-
1,727,532
-
Gains on sale of capital assets
200,201
27,805
-
228,006
7,449
Income (loss) before
transfers
29,558,855
3,366,486
508,047
33,433,388
(36,783)
Transfers in
-
1,339,974
-
1,339,974
2,306,519
Transfers out
(1,177,617)
(7,615)
-
(1,185,232)
-
Total transfers
(1,177,617)
1,332,359
-
154,742
2,306,519
Change in net position
28,381,238
4,698,845
508,047
33,588,130
2,269,736
Total net position- beginning, as
previously presented
260,765,239
-
16,391,214
277,156,453
16,751,750
Change within financial reporting entity
(nonmajor to major)
-
14,079,367
(14,079,367)
-
-
Fund balances - beginning, as adjusted
260,765,239
14,079,367
2,311,847
277,156,453
16,751,750
Total net position- ending
$
289,146,477
$
18,778,212
$
2,819,894
$
310,744,583
$
19,021,486
The notes to the financial statements are an integral part of this statement.
44
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Business-type Activities- Enterprise Funds
Water and
Wastewater
Solid Waste
Non-Major
Emergency
Medical
Transportation
Total
Governmental
Activities-
Internal
Service Funds
Cash flows from operating activities:
Receipts from customers
$
107,590,877
$
22,657,844
$
6,591,518
$
136,840,239
$
55,083,369
Payments to employees for services
(17,882,658)
(6,504,095)
(4,232,550)
(28,619,303)
(1,125,508)
Payments to suppliers for goods and services
(58,089,122)
(10,078,447)
(1,898,456)
(70,066,025)
(50,345,025)
Receipts from other
3,925,638
17,771
-
3,943,409
56,006
Net cash provided (used) by operating activities
35,544,735
6,093,073
460,512
42,098,320
3,668,842
Cash flows from noncapital financing activities:
Advances from/(to) other funds
(1,986,326)
1,986,326
-
-
-
Settlement revenue
3,677,021
-
-
3,677,021
-
Transfers in
-
1,339,974
-
1,339,974
2,306,519
Transfers out
(1,177,617)
(7,615)
-
(1,185,232)
-
Net cash provided (used) by noncapital financing
activities
513,078
3,318,685
-
3,831,763
2,306,519
Cash flows from capital and related financing activities:
Proceeds from issuance of bonds
53,411,332
20,275,815
-
73,687,147
-
Principal paid on long-term debt
(30,189,406)
-
(30,189,406)
-
Interest and fiscal fees
(13,163,639)
(281,317)
-
(13,444,956)
-
Purchase of capital assets
(39,770,398)
(23,183,967)
-
(62,954,365)
(48,694)
Investment in joint venture
(8,831,563)
-
(8,831,563)
-
Proceeds from the sale of capital assets
206,016
27,805
-
233,821
7,449
Net cash provided (used) by capital and related
financing activities
(38,337,658)
(3,161,664)
-
(41,499,322)
(41,245)
Cash flows from investing activities:
Investment income
5,742,255
796,588
49,295
6,588,138
417,355
Net cash provided (used) by investing activities
5,742,255
796,588
49,295
6,588,138
417,355
Net increase (decrease) in cash and cash
equivalents
3,462,410
7,046,682
509,807
11,018,899
6,351,471
Cash and cash equivalents at beginning of year
109,315,390
12,953,318
894,511
123,163,219
44,366,530
Cash and cash equivalents at end of year
$
112,777,800
$
20,000,000
$
1,404,318
$
134,182,118
$
50,718,001
Reconciliation of cash and cash equivalents at end of
year:
Pooled cash and investments
$
78,811,174
$
-
$
1,404,318
$
80,215,492
$
38,834,217
Restricted cash and investments
33,966,626
20,000,000
-
53,966,626
11,883,784
Cash and cash equivalents at end of year
$
112,777,800
$
20,000,000
$
1,404,318
$
134,182,118
$
50,718,001
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
$
11,511,167
$
2,800,483
$
457,259
$
14,768,909
$
(473,205)
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depreciation/amortization
30,272,450
2,053,408
315,066
32,640,924
5,580
Change in assets and liabilities:
(Increase) decrease in receivables
(3,103,649)
139,934
218,712
(2,745,003)
(156,360)
(Increase) decrease in inventories
(154,726)
-
-
(154,726)
-
(Increase) decrease in net OPEB asset
(88,604)
(8,447)
(5,629)
(102,680)
(3,720)
Increase (decrease) in deposits
12,558
30,895
32
43,485
-
Increase (decrease) in unearned revenue
132,807
-
-
132,807
-
Increase (decrease) in payables
(2,196,096)
1,829,127
(22,297)
(389,266)
712,937
Increase (decrease) in accrued expenses
68,798
39,320
(6,525)
101,593
155,254
Increase (decrease) in claims payable
-
-
-
3,436,399
Increase (decrease) in compensated absence
(175,222)
83,572
(10,001)
(101,651)
19,861
(Increase) decrease in deferred outflows related to
pension and OPEB
(1,141,731)
(317,443)
(205,592)
(1,664,766)
(52,512)
Increase (decrease) in deferred inflows related to
pension and OPEB
58,992
(12,359)
23,484
70,117
10,740
Increase (decrease) in net pension liabilities
(365,473)
(428,437)
(271,090)
(1,065,000)
19,166
Increase (decrease) in net OPEB liabilities
713,464
(116,980)
(32,907)
563,577
(5,298)
Net cash provided (used) by operating activities
$
35,544,735
$
6,093,073
$
460,512
$
42,098,320
$
3,668,842
Noncash investing, capital, and financing activities:
Accounts payable related to capital assets
$
7,135,320
$
2,004,079
$
-
$
9,139,399
$
-
Total noncash investing, capital, and financing activities:
$
7,135,320
$
2,004,079
$
-
$
9,139,399
$
-
The notes to the financial statements are an integral part of this statement.
1
Statement of Fiduciary Net Position
Fiduciary Trust Fund
June 30, 2025
City of Tempe, Arizona
Other Employee
Benefit Trust Fund
Assets
Cash and cash equivalents
$
206,129
Interest receivable
607
Investments at fair value:
Mutual Funds
22,310,130
Total investments
22,310,130
Total assets
22,516,866
Net Position
Restricted for other post employment benefits
22,516,866
Total net position
$
22,516,866
Statement of Changes In Fiduciary Net Position
Fiduciary Trust Fund
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Other Employee
Benefit Trust Fund
Additions:
Contributions:
Employer contributions
$
10,269,106
Investment earnings:
Net decrease in fair value of investments
1,791,485
Interest, dividends and other
570,449
Net investment earnings
2,361,934
Total additions
12,631,040
Deductions:
Benefits paid to participants or beneficiaries
10,269,106
Total deductions
10,269,106
Net increase in fiduciary net position
2,361,934
Net position- beginning
20,154,932
Net position- ending
$
22,516,866
The notes to the financial statements are an integral part of these statements.
46
The City of Tempe, Arizona (the "City") was incorporated on November 26, 1894. On October 19, 1964, the
electors in accordance with Arizona State Law ratified a Home Rule City Charter. The City operates under a
Council-Manager form of government and provides services as authorized by its charter including public safety
(police, fire, building inspection), highways and streets, public transit, sanitation, water and wastewater, cultural-
recreational, community development, and administrative.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying summary of the City's significant accounting policies is presented to assist the reader in
interpreting the basic financial statements. The basic financial statements of the City have been prepared in
conformity with accounting principles generally accepted in the United States of America ("GAAP") as applied to
governmental units.
A.
Reporting Entity
The accompanying basic financial statements include the City and its component unit, collectively referred to as
"the financial reporting entity". In accordance with the Governmental Accounting Standards Board's ("GASB")
Statement 14, as amended, the component unit discussed below has been included in the City's financial
reporting entity because of the significance of its financial relationships with the City.
Rio Salado Community Facilities District: The Rio Salado Community Facilities District (CFD) was organized on
February 20, 1997, under the laws of the State of Arizona to facilitate development of the Rio Salado Town Lake
project. The board of the district is comprised of the same members as the City’s council.
Data for this component unit has been included in the City's basic financial statements utilizing the "blending"
method because its sole purpose is to finance public facilities and facilitate development for the City. Blending
involves aggregating the component unit’s data and data from the City at the government-wide and fund financial
statement level. Separately issued financial statements are not available for the City's component unit.
B.
Basic Financial Statements
The basic financial statements include both government-wide (based on the City as a whole and its component
unit) and fund financial statements. Both the government-wide and fund financial statements categorize activities
as either governmental activities or business-type activities. Governmental activities are normally supported by
taxes and intergovernmental revenues. Business-type activities 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 as well as long-term obligations. The government-wide financial statements 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. The government-wide financial statements exclude the fiduciary fund.
The government-wide Statement of Activities demonstrates the degree to which the direct expenses, including
depreciation, of the various departments of the City are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific department. Interest on long-term debt and depreciation expense on
assets shared by multiple departments, are not allocated to the various departments.
Program revenues include revenues from fines and forfeitures, licenses and permit fees, special assessment
taxes, certain intergovernmental grants, other entities participation and charges for services. Taxes and other
items not properly included among program revenues are reported as general revenues.
Generally, the effect of interfund activity has been removed from the government-wide financial statements. Net
interfund activity and balances between governmental activities and business-type activities are shown in the
government-wide financial statements.
The City does not currently utilize an indirect cost allocation system. The General Fund charges certain
administrative fees to departments within other operating funds to support general services used by those funds.
The expenditures/expenses are recorded as a reduction of expense in the allocating fund. Therefore, no
elimination is required from either the government-wide or fund level financial statements.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
47
B.
Basic Financial Statements (Continued)
The fund financial statements are, in substance, very similar to the financial statements presented prior to the
adoption of GASB Statement 34. Emphasis here is on the major funds in either the governmental, business-type
or fiduciary categories. Non-major funds are summarized into a single column.
Unless an internal service fund is combined with the business-type activities (deemed to be an infrequent event),
totals on the proprietary fund statement should directly reconcile to the business-type activity column presented in
the government-wide statements.
Internal service funds of a government (which traditionally provide services primarily to other funds of the City) are
presented as part of the proprietary fund financial statements. Since the principal users of the internal services are
the City’s governmental activities, financial statements of internal service funds are consolidated into the
governmental activities column when presented at the government-wide level. To the extent possible, the costs of
these services are reflected in the appropriate department.
C.
Basis of Presentation
The City uses funds to report on its financial position and the results of its operations. A fund is a separate
accounting entity with a self-balancing set of accounts. Fund accounting is designed to demonstrate legal
compliance and to aid in the City's financial management by segregating transactions related to certain
functions or activities.
The following fund categories are used by the City:
Governmental Funds
Governmental Funds are those through which most of the governmental functions of the City are financed.
The focus of Governmental Fund measurement, in the fund financial statements, is upon determination of
financial position and changes in financial position rather than upon net income.
Governmental Funds include the following fund types:
General - The General Fund is the general operating fund of the City. It is used to account for all
activities of the City not accounted for in some other fund.
Special Revenue - Special Revenue Funds are used to account for the proceeds of specific revenue
sources (other than for major capital projects) that are legally or otherwise restricted to expenditures
for specified purposes. There is one special revenue fund presented as a major fund in the basic
financial statements, it is as follows:
Transit Special Revenue Fund - accounts for the receipt and expenditures of the Transit Tax
monies. These monies are restricted to financing transit operations and improvements.
Debt Service - Debt Service Funds are used to account for the accumulation of resources for, and
the payment of, long term debt not being accounted for in the Special Revenue Funds and Enterprise
Funds. There is one debt service fund presented as a major fund in the basic financial statements:
General Obligation Debt Service Fund - accounts for the accumulation of resources and
payments of general obligation and other debt.
Capital Projects - Capital Projects Funds are used to account for financial resources to be used for
the acquisition or construction of major capital facilities and improvements (other than those financed
by Enterprise Funds). The following capital project fund is presented as a major fund in the basic
financial statements:
Community Development Capital Projects Fund - used for acquiring, reconstructing,
remodeling, renovating and equipping existing buildings that house municipal departments, and
for acquiring and constructing housing for the elderly and the redevelopment of the downtown
area.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
48
C.
Basis of Presentation (Continued)
Proprietary Funds
Proprietary funds are used to account for the City's ongoing operations and activities, which are similar to
those often found in the private sector. The focus of Proprietary Fund measurement is upon the determination
of operating income, changes in net position, financial position and cash flows. Proprietary funds include the
following fund types:
Enterprise - Enterprise Funds are used to account for operations, including debt service, (a) that are financed
and operated in a manner similar to private businesses - where the intent of the government body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on a continuing
basis is financed or recovered primarily through user charges; or (b) where the governing body has
determined that periodic determination of revenues earned, expenses incurred, and/or net income is
appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
The following enterprise funds are reported as major funds by the City:
Water and Wastewater Fund – accounts for the provision of water and sewer services to the residents of
the City and some residents in the adjoining Town of Guadalupe. All activities necessary to provide such
services are accounted for in this fund, including but not limited to administration, operation, maintenance,
financing and related debt service, billing and collection.
Solid Waste Fund – accounts for the provision of solid waste collection and disposal services to the
residents of the City and certain customers in surrounding areas. All activities necessary to provide such
services are accounted for in this fund, including but not limited to administration, operations,
maintenance, financing and related debt service, billing, and collection.
Internal Service - Internal Service Funds account for operations that provide services to other departments or
agencies of the government, or to other governments, on a cost-reimbursement basis.
The following internal service funds are used by the City:
Risk Management Fund – accounts for expenses incurred for automobile liability, general liability, and
property claims under the City’s self-insurance program.
Worker’s Compensation Fund – accounts for expenses incurred for worker’s compensation claims
under the City’s self-insurance program.
Health Fund – accounts for the expenses incurred for employee health related costs under the City’s self-
insurance program.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside of the City. The
fiduciary fund is reported by fund type. The following fiduciary fund is used by the City:
Other Post Employment Benefits Trust Fund – accounts for activities of the Other Post Employment
Benefits Plan, which accumulates resources for health care benefit payments to qualified retirees.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
49
D.
Measurement Focus and Basis of Accounting
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. This is the manner in which these funds are normally budgeted. This
presentation is deemed most appropriate to 1) demonstrate legal and covenant compliance, 2) demonstrate the
source and use of liquid resources, and 3) demonstrate how the City’s actual experience conforms to the annual
budget. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e.,
both measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" is defined as collectible within the current period or within 60 days of the end of the current fiscal
period, except for grant revenue which are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met. Expenditures, other than interest on long-term debt, are recorded when the
related fund liability is incurred, if measurable. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due. As
permitted by generally accepted accounting principles the City applies the “early recognition” option for debt
service payments. Resources are provided during the current year for the payment of debt service principal and
interest due early in the following year (less than one month). Therefore, the expenditures and related liabilities
have been recognized in the current period.
Revenues susceptible to accrual include property tax, local sales tax, state-shared sales tax, highway user tax,
vehicle license tax, franchise fees, special assessments and interest earned on pooled investments. Licenses and
permits, charges for services, fines and forfeitures and miscellaneous revenues are generally recorded as
revenues when received in cash because they are not measurable until actually received. In applying the
susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the
numerous individual programs are used as guidance. There are, however, essentially two types of these
revenues. In one, monies must be expended for a specific purpose or project before any amounts will be paid to
the City; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are
virtually unrestricted as to the purpose of expenditure and are usually revocable only for failure to comply with
prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if
the susceptible to accrual criteria are met.
The City reports unearned revenues in the governmental funds if the potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period. Unearned revenues arise when
resources are received by the City before it has a legal claim to them, as when grant monies are received prior to
the occurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met,
or when the City has a legal claim to the resources, the liability for the unearned revenue is removed and revenue
is recognized.
Since the governmental fund financial statements are presented on a basis different 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
governmental fund financial statements into the governmental activities column of the government-wide financial
statements.
Generally, the effect of interfund activity has been eliminated from the government-wide financial statements. An
exception to this rule is charges between the government’s water and sewer function and various functions of the
City. Elimination of these charges would distort the direct costs and program revenues reported for the applicable
functions.
Amounts reported as program revenue include 1) charges to customers or users who purchase, use or directly
benefit from goods or services provided by a particular department 2) operating grants and contributions that are
restricted to meeting the operational requirements of a particular department and 3) capital grants and
contributions that are restricted. Taxes, investment income and other revenues not identifiable with a particular
department are included as general revenues. The general revenues support the net costs of the departments not
covered by program revenues.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
50
D. Measurement Focus and Basis of Accounting (continued)
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues
and expenses generally result from providing goods and services of the fund’s principal ongoing operations.
Operating expenses include the cost of providing the goods and services, administrative expenses, and
depreciation on capital assets. Non-operating revenues and expenses are items such as investment income and
interest expense, which are not a result of the direct operations of the activity.
The equity method is used to account for the City's equity interest in a joint venture (See Note 7). Under this
method, the equity interest is recorded in the balance sheet as a single amount. In addition, the City's share of the
net income or loss is reported in the Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds, as a nonoperating revenue or expense.
E.
Budgetary Data
State law mandates that cities and towns adopt a budget annually. The legal level of budgetary control is at the
city-wide level consisting of the total operating budget and the total capital projects budget, as adopted.
Management may amend the budget at any level below the total budget as adopted. The total budget can only be
amended by the City Council subject to limitations in the State law (see Note 1F). At the end of each fiscal year, all
amounts encumbered are reappropriated as part of the following year’s operating or capital projects budget. Any
appropriations that are either unexpended or unencumbered, lapse at fiscal year-end. The separately issued
annual budget may be obtained from the City's Municipal Budget Office, 31 East 5th Street, Tempe, Arizona,
85281.
The City adheres to the following procedures in establishing the budgetary data:
1) Prior to May 1, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following July 1. The operating budget includes proposed revenues and
expenditures.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to July 1, the budget is legally enacted through passage of a resolution.
F.
Pooled Cash and Investments
Cash resources of the City are combined to form a pool of cash and investments managed by the Accounting
Division. Excluded from this pool are certain legally restricted cash resources. In accordance with the City’s legally
adopted budget, the interest earned on pooled investments is recorded in the General Fund, except for the
earnings of Enterprise Funds and other funds whose interest earnings are specifically mandated by law or an
outside regulating agency to remain in those funds. Investments are stated at fair value.
The City's investment policy permits investment in the following instruments:
1)
Obligations of the United States Government, its agencies and instrumentalities;
2)
Fully insured or collateralized certificates of deposit and other evidence of deposit at banks and savings
and loan associations;
3)
Bankers' acceptances issued by the 10 largest domestic banks and the 20 largest international banks,
provided collateral meets the standards set by the Investment Advisory Committee;
4)
A-1/P-1 rated commercial paper secured by an irrevocable line of credit or collateralized by U.S.
government securities;
5)
Repurchase agreements whose underlying collateral consist of the foregoing;
6)
Money market funds whose portfolios consist of the foregoing; and
7)
The State of Arizona's Local Government Investment Pools 5 and 7.
Investment income is composed of interest, dividends, and net changes in the fair value of applicable
investments. Investment income is included in other local revenue in the governmental fund financial statements
and in nonoperating revenues in the proprietary fund financial statements.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
51
G. Receivables
For accounts receivable, all amounts are net of allowance for doubtful accounts ($3,905,647 in non-major
enterprise fund).
H. Inventories and Prepaid Items
All inventories are valued using the average cost method. They consist of expendable supplies held for
consumption and are accounted for using the consumption method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when
consumed in the government-wide financial statements. Prepaid items are recorded as expenditures when
consumed in the fund financial statements.
In fund financial statements, inventory and prepaid items represent amounts that are not in spendable form, even
though they are a component of assets. Such amounts are presented as a component of non-spendable fund
balance.
I.
Restricted Assets
Certain proceeds of the City’s bonds, as well as certain resources set aside for their repayment, are classified as
restricted on the Balance Sheet, Statement of Fund Net Position, or Statement of Net Position, because they are
maintained in trust accounts and their use is limited by applicable debt covenants. In addition, the Industrial
Commission of Arizona requires a restricted security for self-insured entities. As the City is self-insured, a security
of $8.1 million is included in restricted assets in the Worker’s Compensation Fund.
J. Capital Assets
Capital assets, including public domain infrastructure (e.g., roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost or in aggregate of similar items of more than $10,000 ($25,000 for
infrastructure assets) and an estimated useful life greater than three years. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of arts and
capital assets received in a service concession arrangement are recorded at acquisition value at the date of
donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend its life,
are not capitalized. Major improvements are capitalized and depreciated over the remaining useful lives of the
related capital assets.
Property, plant and equipment are depreciated using the straight-line method over the following estimated useful
lives (land and construction-in-progress are not depreciated):
Assets
Useful Life (years)
Buildings
10-70
Infrastructure
7-70
Improvements
5-50
Machinery and equipment
3-10
Intangible:
Right-to-use subscription assets
Varies
Right-to-use lease assets
Varies
Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life of the
underlying asset, unless the lease contains a purchase option that the City is reasonably certain of being
exercised―then the lease asset is amortized over the useful life of the underlying asset.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
52
Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life
of the underlying IT assets.
K. Leases
The city has entered into lease agreements and are accounted for based on the principle that leases are
financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow
of resources.
L. Subscription based information technology agreement
Subscription based information technology agreement (SBITA) related amounts are recognized at the inception of
SBITA in which the City is the lessor. The deferred inflow of resources is recorded in an amount equal to the
corresponding lease receivable plus certain additional amounts received from the SBITA at or before the
commencement of the subscription term that relate to future periods, less any incentives paid to, or on behalf of
the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a
systematic and rational manner over the term of the SBITA
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will report a separate section for deferred outflows of resources.
This separate financial statement element, deferred outflow of resources represent a consumption of net assets
that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The government only has two items that qualify for reporting in this category. It is the deferred charge on
refunded debt and deferred outflows related to pensions and OPEB reported in the government-wide statement of
net position.
In addition to liabilities, the statement of net position will report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources represent an acquisition of
net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until
that time. The government has four items that qualify for reporting in this category. Unavailable revenue, which
arises only under a modified accrual basis of accounting, deferred inflow related to leases, the deferred inflow
related to pensions and other post-employment benefits, and amounts resulting from refunded debt.
Amounts that are reported as deferred outflows are shown as a separate balance sheet section following the
assets. Similarly, amounts shown as deferred inflows are shown in a separate balance sheet section following
liabilities.
Under the GASB 94 - “Public-Private and Public-Public Partnerships (PPPs) and Availability Payment
Arrangements (APAs)", the City’s golf courses met the definition of a PPP-Service Concession Arrangement.
There were $6.0 million of related deferred inflows of resources recognized in the current year.
N. Compensated Absences
Accumulated unpaid vacation, vested sick pay and earned compensatory time are accrued in the Government-
wide and all Proprietary Fund statements. Compensated absences are only reported in the governmental funds if
they have matured (i.e., unused reimbursable leave still outstanding following an employee’s resignation or
retirement). These long-term liabilities of the governmental funds are not shown on the fund financial statements,
as the benefits are not expected to be liquidated with expendable available financial resources. Vacation leave will
be absorbed by time off from work or, within certain limitations, may be payable to the employees. Sick leave is
accumulated at the rate of 96 hours (or a proportionate equivalent for employees with workweeks other than 40
hours) per year up to a maximum of 480 hours. Each year, hours accumulated in excess of 480 hours are either
converted to cash at a 4-for-1 rate or accumulated in a “sick bank”. Generally, upon retirement or resignation,
employees with at least 10 or 20 years of service are eligible for compensation of up to 50 percent, or 60 percent
respectively, of accumulated sick leave.
Each employee receives a $500 "Mediflex" allowance each year as reimbursement for all otherwise non-
reimbursed health maintenance costs. Unused balances are accumulated. Upon termination, for employees with
at least 10 years of service, the balance is transferred to a “Retiree Funded Health Savings Account”.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
53
O. Post-Employment Benefits
For purposes of measuring the net pension and other postemployment benefits (OPEB) assets and liabilities,
deferred outflows of resources and deferred inflows of resources related to pensions and OPEB, and pension and
OPEB expense, information about the plan’s fiduciary net assets and additions to/deductions from the plan’s
fiduciary net assets have been determined on the same basis as they are reported by the plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value except for money market investments
and interest earnings from investment contracts that have a maturity at the time of purchase of 1 year or less
which are reported at cost.
P. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type. Bond premiums and discounts are deferred and amortized over
the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, in the period in which the bonds are issued. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources, while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
Q. Net Position Flow Assumption
In the government-wide and proprietary fund financial statements the City applies restricted resources first when
outlays are incurred for purposes for which either restricted or unrestricted amounts are available.
R. Interfund Transactions
Interfund transactions consist of identified services performed for other funds or costs billed to other funds and are
recorded as expenditures in the fund receiving the services and as a reimbursement, reducing expenditures, in
the fund performing the services except for sales of water, sewer and refuse services to other City departments
and the internal service risk management, worker’s compensation or health charges which are recorded as
revenue and expenditures in the appropriate funds. All other interfund transactions are reported as transfers.
S. Fund Equity
In the fund financial statements, the classifications of fund balance are Nonspendable, Restricted, Committed,
Assigned, and Unassigned. Nonspendable and Restricted fund balances represent the “restricted” classifications
and Committed, Assigned, and Unassigned represent the “unrestricted” classifications (see Note 14).
T. Statements of Cash Flows
The City considers all highly liquid investments (including restricted assets) with an original maturity of three
months or less to be cash equivalents. For the purposes of the statement of cash flows, all pooled cash and
investments are also considered to be cash equivalents, although there are investments with maturities in excess
of three months when purchased in the portfolio. This is due to the fact that the Proprietary funds may deposit or
withdraw cash at any time without prior notice or penalty, having the characteristics of demand deposits. In a
statement of cash flows, cash receipts and payments are classified according to whether they stem from
operating, noncapital financing, capital and related financing, or investing activities.
U. Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amount of assets, liabilities, revenue and expenses/expenditures, and the disclosure of contingent assets and
liabilities at the date of the basic financial statements. Actual results could differ from those estimates.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
54
V. Implementation of New GASB Pronouncement
For the year ended June 30, 2025, the City implemented the provision of GASB Statement No. 101 -
Compensated Absences. This Statement establishes accounting and financial reporting requirements for (a)
compensated absences, and (b) associated salary-related payments, including certain defined contribution
pensions and defined contribution other postemployement benefits (OPEB). City also implemented GASB
Statement No. 102—Certain Risk Disclosures. There is no financial impact to the City’s financial statements. The
Statement establishes financial reporting requirements for risks related to vulnerabilities due to certain
concentrations or constrains.
NOTE 2 - BUDGET BASIS OF ACCOUNTING
Arizona state statutes require accounting for certain transactions to be on a basis other than GAAP. Legal control
over the budget derives from State statues that prohibits the City from exceeding it’s adopted budget in total. The
legally adopted budget is at the citywide level that includes operating budget and capital budget. The budgetary
comparison schedule at the citywide level is presented in the Required Supplementary Information section. There
are certain differences between the budgetary basis and the basis used for reporting under GAAP. The major
differences between the budget and GAAP bases are:
1)
Encumbrances are recorded as the equivalent of expenditures (budget) as opposed to a reservation of fund
balance (GAAP).
2)
Certain revenues and expenditures not recognized in the budgetary year are accrued (GAAP).
3)
Changes in the fair value of investments (GAAP) are not budgeted.
NOTE 3 - PROPERTY TAXES
Under Arizona law a two-tiered tax system exists: (1) a primary system for taxes levied to pay for current operation
and maintenance expenses, and (2) a secondary system for taxes levied to pay principal and interest on bonded
indebtedness as well as for the determination of the maximum permissible bonded indebtedness.
In Fiscal Year 2016, with the passage of Proposition 117, the limited property tax value was required to be used in
determining and levying primary and secondary taxes on all property. In May 2016, legislation was passed by the
Arizona State Legislature, effective August 2016, which clarifies that the valuation for the calculation of the debt
limit is the full cash (secondary) property value rather than the limited property value. Primary levies are limited to
a 2% increase annually plus levies attributable to assessed valuation added as a result of growth and annexation.
Secondary tax levies do not have a limitation.
The City's property tax is levied each year on or before the third Monday in August based on the previous January
1 Limited Property Tax Value as determined by the Maricopa County Assessor. Levies are due and payable in two
installments on October 1 and March 1, and become delinquent on November 1 and May 1, respectively.
Delinquent amounts bear interest at the rate of 16%. Maricopa County, at no charge to the taxing entities, bills and
collects all property taxes.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
55
NOTE 3 - PROPERTY TAXES (Continued)
Public auctions of properties which have delinquent real estate taxes are held in February following the May 1
date upon which the second installment becomes delinquent. The purchaser is given a Certificate of Purchase
issued by the County Treasurer. Five years from the date of sale, the holder of a Certificate of Purchase, which
has not been redeemed, may demand of the County Treasurer a County Treasurer's Deed. Additionally, a lien
against property assessed attaches on the first day of January preceding the assessment and levy thereof.
NOTE 4 - CASH AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of
this pool is displayed on the Statement of Net Position and on the Balance Sheet as "Pooled cash and
investments." Pooled cash and investments are stated at fair value, with accrued interest shown under “Accrued
interest receivable”. The change in fair value of the investments is recorded in investment income. Restricted cash
and investments are amounts held separately by trustees and segregated due to their source and future intent.
Amounts held by trustees are invested in money market securities, maturing within one year from the time of
purchase, or US treasury obligations and are reported at fair market value.
Deposits
At year-end, the carrying amount of the City's deposits with financial institutions was $6,703,309 and the bank
balance was $12,383,110; $11,862,888 of that amount was exposed to custodial risk because it was uninsured
and is collateralized with securities held by the pledging financial institution. In addition, the City holds $20,947 in
petty cash. The City also reported construction deposit of $41.4 million which is money set-aside for joint venture
contribution.
Investments
City Charter, Ordinance, and Trust Agreements authorize the City to invest in US treasury obligations, US agency
obligations, certificates of deposit that are fully insured or collateralized, banker’s acceptances issued by the 10
largest domestic banks and the 20 largest international banks, A-1/P-1 rated commercial paper secured by an
irrevocable line of credit or collateralized by US government securities, repurchase agreements whose underlying
collateral consist of the foregoing, money market funds whose portfolios consist of the foregoing and the Arizona
Local Government Investment Pool.
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:
Carrying amount of investments
$ 643,123,635
Carrying amount of cash deposits
6,699,814
Total cash and investments
$ 649,823,449
Pooled cash and investments – unrestricted
$ 485,477,595
Restricted cash and investments
141,829,595
Investments in OPEB trust
22,516,259
Total cash and investments
$ 649,823,449
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
56
At June 30, 2025, the City maintained the following investments and maturities:
Remaining Maturity in Months
Category
Fair Value
12 Months or
Less
13 – 24
Months
25 – 36
Months
37 - 48
Months
US government treasuries
Level 2
$
305,683,840
$
89,699,877
$
123,102,985
$
92,880,978
$
-
US government agencies
Level 2
124,262,032
40,395,068
40,682,020
41,743,275
1,441,669
Money market
Level 1
146,575,888
146,575,888
-
-
-
State investment pool
N/A
44,291,138
44,291,138
-
-
-
Mutual funds
Level 1
22,310,737
22,310,737
-
-
-
$
643,123,635
$
343,272,708
$
163,785,005
$
134,624,253
$
1,441,669
Fair Value Measurements. The City categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset.
•
Level 1 inputs are quoted prices in active markets for identical assets
•
Level 2 inputs are significant other observable inputs
•
Level 3 inputs are significant unobservable inputs
For level 2 investments, one method used to establish fair value is the evaluators gather information from market
sources and integrate relative credit information, observed market movements, and sector news into the
evaluated pricing applications and models. Another method is a volatility-driven, multi-dimensional single cash
flow stream model or option-adjusted spread (OAS) model is used.
The State Treasurer’s pool is an external investment pool, the Local Government Investment Pool (Pool 5), with
no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and
Exchange Commission. The activity and performance of the pool is reviewed monthly by the State Board of
Investment. The fair value of each participant’s position in the State Treasurer investment pool approximates the
value of the participant’s shares in the pool and the participants’ shares are not identified with specific
investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair
value hierarchy.
Interest rate risk. One of the ways the City limits its exposure to fair value losses arising from rising interest rates
is by purchasing a combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary
to provide the cash flow and liquidity needed for operations. Although the City’s formal investment policy allows for
investment maturities up to 5 years from the date of purchase, in general, the City limits all securities to a final
maturity of no more than three years and assumes that its callable investments will not be called. In general, it is
the City’s intent to hold investments to maturity.
Credit risk. The City addresses credit risk through the investment policy by restricting the allowable investment
instruments. The investments in the US agency obligations and US government treasuries were rated AA+ and
money market funds were rated AAA by S&P Global. The Arizona Local Government Investment Pool 5 is
currently rated AAA by Moody’s. The OPEB Trust has investments with an average quality ranging from AAA to B.
Concentration of Credit Risk. The City policy places no limit on the amount that the City may invest in any one
issuer of the US treasury obligations and the US agency obligations. The investment policy does establish a
maximum percentage of 10% in banker’s acceptances, 20% in commercial paper and 25% in repurchase
agreements. The maximum investment in any one issuer for certificates of deposits is 33% and for repurchase
agreements is 10%. The City is required to disclose if 5% or more of its investments are in securities of a single
issuer. As of June 30, 2025, 70.3% of the City’s investments are in US Treasuries, 4.1% of the City’s investments
are in Federal Home Loan Mortgage Corporation securities, and 24.4% in Federal Home Loan Mortgage Bank.
Custodial Credit Risk. The City’s investment in the State of Arizona Local Government Investment Pool (LGIP) is
stated at fair value, which approximates the value of the City’s pool shares. The LGIP is operated by the Arizona
State Treasurer’s Office, as authorized by Arizona Revised Statutes, §35-326. Arizona Revised Statutes, §35-312
and §35-313, regulate authorized investments. The Arizona State Legislature has created the Arizona Board of
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 4 - CASH AND INVESTMENTS (Continued)
57
Investments which reviews the investment of state monies, serves as trustees of the Permanent Land Trust
Funds, and approves the State Treasurer’s Office Investment Policy.
NOTE 5 - DUE TO/FROM OTHER FUNDS, INTERFUND TRANSFERS AND ADVANCES
Due to/from other funds consisted of the following at June 30, 2025:
Due to
Due from
General fund
$
- $
6,132,707
General obligation debt service fund
5,358,489
-
Non-major governmental funds
713,605
-
Water and wastewater fund
-
1,986,326
Solid waste fund
1,986,326
-
Internal service funds
60,613
-
Total governmental funds
$
8,119,033 $
8,119,033
The interfund balances at June 30, 2025 are short-term transfers to cover temporary cash deficits in various
funds. All interfund balances outstanding at yearend are expected to be repaid within one year.
Transfers Out
General
Transit
Special
Revenue
Community
Development
Capital
Projects
Non-Major
Governmental
Water and
Wastewater
Solid
Waste
Total
Transfers In
General
$
-
$
-
$
-
$
49,469
$
94,750
$
-
$
144,219
General Obligation Debt
Service
740,498
-
-
7,615
132,530
7,615
888,258
Community Development
Capital Projects
4,978,020
56,480
-
-
950,337
-
5,984,837
Non-Major Governmental
1,837,600
5,648,000
131,822
5,010,000
-
-
12,627,422
Solid Waste
1,339,974
-
-
-
-
-
1,339,974
Internal Service Funds
2,306,519
-
-
-
-
-
2,306,519
Total
$ 11,202,611
$
5,704,480
$
131,822
$
5,067,084
$
1,177,617
$
7,615
$
23,291,229
The interfund transfers generally fall within one of the following categories: 1) pay-as-you-go financing transfers
into capital project funds; 2) transfers to cover debt service payments; or 3) transfers to cover operating
expenditures/expenses in accordance with City policy.
NOTE 6 – CAPITAL IMPROVEMENT NOTES RECEIVABLE
In August 2008, the City advanced to the Downtown Tempe Authority (DTA) $250,000 to begin operations. The
DTA is to repay the advance at zero percent interest rate when the district is terminated. At June 30, 2025 the
General Fund capital improvement note receivable balance for this agreement is $250,000.
During the construction of the light rail, the City entered into a development agreement to add a light rail station at
Washington and Center Parkway. The agreement has total contributions to the City of $1.3 million, payable at
$130,000 annually over a five and six-year period with the remaining balance due the following year. At June 30,
2025, the note receivable balance in the Transit Special Revenue fund is $1,000,806 and the corresponding
revenue has been reported as a deferred inflow of resources.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 4 - CASH AND INVESTMENTS (Continued)
58
NOTE 7 - JOINT VENTURE
The City currently participates in three joint ventures, the Subregional Operating Group, Valley Metro Rail, Inc and
Regional Wireless Cooperative.
Subregional Operating Group (SROG)
The City participates with the cities of Phoenix, Mesa, Scottsdale, and Glendale in an intergovernmental
agreement for the construction, operation and maintenance of jointly used facilities including the 91st Avenue
Wastewater Treatment Plant, the Salt River Project Outfall Sewer, the Southern Avenue Interceptor and related
transportation facilities. The City of Phoenix is the management agency who has agreed to be responsible for the
planning, designing, constructing, operating and maintaining of the jointly used sewage facilities and to perform
the required accounting, administrative and other support functions.
The agreement provides for the formation of a Multicity Subregional Operating Group Committee ("Multicity
SROG"), whose members are composed of a representative officially appointed upon motion and order of each
city, for the specific purpose of making recommendations concerning specific decisions or courses of action for
the jointly used facilities. The Multicity SROG annually reviews and approves the capital improvements and
replacements budget and the operating budget for the jointly used facilities.
As of June 30, 2024 (the latest information available), the City has a 14.76% equity interest or purchased capacity
in the 91st Avenue Wastewater Treatment Plant and other varied, yet less significant percentages of equity
interest in the other jointly used facilities. Purchased capacity is a measure of the right of use owned by the City in
the total capacity of the wastewater treatment plant. The City contributes to capital improvements based upon
equity interest and contributes to operating and maintenance expenses based upon proportional flow and sewage
strength. The City has financed its share of capital improvement costs through the issuance of general obligation
bonds, excise tax bonds, development fees and grants. The joint venture has not issued any debt.
Summary financial information on the joint venture (GAAP basis) as of and for the fiscal year ended June 30, 2024
(the latest information available) is as follows (in thousands):
Total assets
$
679,929
Total liabilities
(75,917)
Total net position
$
604,012
Total revenues
$
127,335
Total expenses
(104,029)
Total non-operating revenues (expenses)
(4,174)
Net decrease in net position
$
19,132
The City's net investment and its share of operating and maintenance expenses are recorded in the Water and
Wastewater Enterprise Fund. The City's equity in joint venture on June 30, 2024, was $89,249,000. Separately
audited financial statements for the jointly used wastewater treatment and transportation facilities may be obtained
from the Arizona Municipal Water Users Associations, 3003 North Central, Suite 1550, Phoenix, Arizona, 85012.
Valley Metro Rail, Inc. (VMRI)
The City currently participates with the cities of Phoenix, Mesa and Glendale in a joint powers agreement for the
design, construction and operation of a light rail transit system. Valley Metro Rail, Inc. (VMRI) is the management
agency that was incorporated to administer the joint powers agreement between the cities. In addition, VMRI has
oversight responsibility for the planning, designing, construction and operation of a regional mass transit light rail
system. The agreement provides voting rights for members of the representative cities related to strategic
initiatives including passage of an annual capital program and annual operating budget.
As of June 30, 2024, the City has a 13.12% equity interest in the joint venture. The light rail project was completed
and began operations in December 2008. Member contributions to the joint venture were offset by a federal
funding agreement from the U.S. Department of Transportation. These contributions were recognized as
intergovernmental revenue in the Transit Capital Projects fund.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
59
NOTE 7 - JOINT VENTURE (Continued)
Summary financial information on the joint venture (GAAP basis) as of and for the fiscal year ended June 30, 2024
(the latest information available) is as follows (in thousands):
Total assets
$ 2,954,576
Total liabilities
(203,281)
Total deferred inflows of resources
(2,365)
Total net position
$ 2,748,930
Operating revenues
$
10,542
Operating expenses
(161,495)
Non-operating revenues
85,656
Capital Contributions
282,634
Net increase in net position
$
217,337
The City has an ongoing financial responsibility as a result of the joint powers agreement to participate in the cost
to construct and operate the light rail project and related improvements less any federal reimbursements and
operating fares. The equity interests will be determined, and periodically adjusted, based on the number of rail
mileage located within each city. The City’s equity in joint venture on June 30, 2024 was $360,781,010. This is
primarily due to the funding of the transit streetcar project through capital grants. Separate financial statements
may be obtained from Valley Metro Rail, Inc., 411 North Central Avenue, Suite 200, Phoenix, Arizona 85004.
Regional Wireless Cooperative (RWC)
The City participates in the Regional Wireless Cooperative (RWC), an association of municipalities formed in 2008
to oversee the administration, operation, management, and maintenance of an expanding regional
communications network. The RWC was formed through a governance structure founded on the principles of
cooperation for the mutual benefit of all members and has expanded to serve a still-growing list of cities, towns,
and fire districts, along with many other area entities who serve public safety needs. A regional radio
communications network was built to seamlessly serve the interoperable communication needs of first responders
and other municipal radio users in and around the Phoenix Metropolitan Region.
Financial responsibilities are shared by all members based on their relative size and is measured by the number
of subscriber units (radios) on the network. Currently, the City of Phoenix is responsible for the day-to-day
operations and maintenance of the network, as well as the management of the RWC’s organization and finances.
The City records its share of contributions to the RWC and the equity in the joint venture in the government-wide
financial statements. As of June 30, 2024, the City’s net investment in RWC was $5,274,498 or 10.75% of the
RWC’s total net position.
Summary financial information on the joint venture (GAAP basis) as of and for the fiscal year ended June 30, 2024
(the latest information available) is as follows (in thousands):
Total assets
$
52,320
Total liabilities
(3,246)
Total net position
$
49,074
Total revenues
$
13,876
Total expenses
(17,246)
Net decrease in net position
$
(3,370)
The Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024, for the RWC may be
obtained from the Regional Wireless Cooperative, 200 West Washington Street, 14th Floor, Phoenix, Arizona,
85003-1611.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
60
NOTE 8 - CAPITAL ASSETS
A summary of capital asset activity, for the government-wide financial statements, for the fiscal year ended
June 30, 2025 is as follows:
Balances June
30, 2024
Additions
Retirements
Transfers
in (out)
Balances June
30, 2025
Governmental activities:
Non-depreciable assets:
Land
$ 95,915,313 $ 26,453,288 $
- $
177,156 $
122,545,757
Construction-in-progress
104,767,994
38,623,778
(517,100)
(68,195,332)
74,679,340
Total non-depreciable assets
200,683,307
65,077,066
(517,100)
(68,018,176)
197,225,097
Depreciable assets:
Buildings
343,662,695
6,719,691
-
37,009,923
387,392,309
Infrastructure
860,791,475
15,539,929
-
6,460,653
882,792,057
Improvements
313,375,760
35,423,659
-
23,463,057
372,262,476
Machinery and equipment
219,623,162
14,265,941
(3,892,868)
1,084,543
231,080,778
Right-to-use IT software
5,028,182
1,468,078
(814,329)
-
5,681,931
Right-to-use leased assets-
building
1,294,308
-
-
-
1,294,308
Total depreciable assets
1,743,775,582
73,417,298
(4,707,197)
68,018,176 1,880,503,859
Less Accumulated depreciation/
amortization for:
Buildings
(217,341,451)
(11,772,828)
-
-
(229,114,279)
Infrastructure
(535,956,418)
(18,268,459)
-
-
(554,224,877)
Improvements
(148,522,390)
(13,988,611)
-
-
(162,511,001)
Machinery and equipment
(172,311,878)
(11,811,863)
3,801,920
-
(180,321,821)
Right-to-use IT software
(1,799,250)
(1,452,788)
814,329
-
(2,437,709)
Right-to-use leased assets-
building
(477,654)
(238,827)
-
-
(716,481)
Total accumulated depreciation/
amortization
(1,076,409,041)
(57,533,376)
4,616,249
- (1,129,326,168)
Total Depreciable assets, net
667,366,541
15,883,922
(90,948)
68,018,176
751,177,691
Governmental activities capital
assets, net
$ 868,049,848 $ 80,960,988 $
(608,048) $
- $
948,402,788
Depreciation/amortization expense was charged to the governmental functions in the government-wide financial
statements as follows:
Public safety
$
10,258,546
General government
9,640,187
Transportation
29,964,361
Criminal Justice
27,980
Community enrichment
7,642,302
Total depreciation/amortization
expense
$
57,533,376
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
61
Balances June
30, 2024
Additions
Retirements
Transfers
in (out)
Balances June
30, 2025
Business-type activities:
Non-depreciable assets:
Land
$
6,330,829 $
- $
- $
- $
6,330,829
Construction-in-progress
26,892,100
42,511,201
(1,666,277)
(10,179,203)
57,557,821
Total non-depreciable
assets
33,222,929
42,511,201
(1,666,277)
(10,179,203)
63,888,650
Depreciable assets:
Buildings
48,189,433
-
-
-
48,189,433
Infrastructure
471,544,819
23,943,132
-
211,295 495,699,246
Improvements
272,896,212
1,191,665
-
9,967,908 284,055,785
Machinery and equipment
56,016,519
3,976,570
(1,062,640)
-
58,930,449
Right-to-use IT software
714,059
269,331
(93,527)
-
889,863
Total depreciable assets
849,361,042
29,380,698
(1,156,167)
10,179,203 887,764,776
Less Accumulated
depreciation/amortization
for:
Buildings
(33,088,924)
(1,221,799)
-
-
(34,310,723)
Infrastructure
(240,011,817)
(13,962,423)
-
- (253,974,240)
Improvements
(138,409,886)
(12,057,044)
-
- (150,466,930)
Machinery and equipment
(31,844,269)
(5,214,300)
1,022,820
-
(36,035,749)
Right-to-use IT software
(353,024)
(185,358)
93,527
-
(444,855)
Total accumulated
depreciation/amortization (443,707,920)
(32,640,924)
1,116,347
- (475,232,497)
Total depreciable assets, net 405,653,122
(3,260,226)
(39,820)
10,179,203 412,532,279
Governmental activities
capital assets, net
$ 438,876,051 $ 39,250,975 $
(1,706,097) $
- $ 476,420,929
Depreciation/amortization expense was charged to the proprietary funds in the government-wide and fund
financial statements as follows:
Water and wastewater
$ 30,272,450
Solid waste
2,053,408
Emergency medical transportation
315,066
Total depreciation/amortization expense
$ 32,640,924
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
NOTE 8 - CAPITAL ASSETS (Continued)
62
NOTE 9 - LONG-TERM DEBT
Changes in Long-term Liabilities. The following is a summary of changes in long-term liabilities for the fiscal
year ended June 30, 2025:
Balances
June 30,
2024
Additions
Reductions
Balances
June 30,
2025
Amounts Due
Within One
Year
Governmental activities:
Debt payable:
General obligation bonds payable
$ 271,690,000 $ 76,125,000 $ (24,445,000) $ 323,370,000 $ 27,180,000
Premium on general obligation
bonds
28,385,064
4,310,017
(2,489,569) 30,205,512
-
Special assessments
8,755,000
-
(1,585,000)
7,170,000
1,665,000
Special assessment 2020 Excise
tax obligations (direct
placement)
11,080,000
-
(560,000) 10,520,000
580,000
Premium on special assessments
251,002
-
(50,201)
200,801
-
Excise tax obligations
41,093,000
- (12,013,000) 29,080,000
2,705,000
Excise tax obligations - direct
placement
13,955,000
-
(1,100,000) 12,855,000
1,125,000
Premium on excise tax obligations
1,756,400
-
(188,338)
1,568,062
-
2021 Certificates of Participation
317,570,000
- (20,380,000) 297,190,000 20,335,000
2004 HUD Section 108 loan
549,000
-
(549,000)
-
-
Debt Principal
695,084,466 80,435,017 (63,360,108) 712,159,375 53,590,000
Compensated absences
34,200,750
911,286
- 35,112,036 13,090,189
Claims and judgments
24,031,561 33,973,016 (30,536,617) 27,467,960 18,644,458
Leases
853,724
-
(237,287)
616,437
237,287
SBITAs
2,613,840
1,351,090
(1,504,342)
2,460,588
1,386,257
Governmental activities long-term
$ 756,784,341 $ 116,670,409 $ (95,638,354) $ 777,816,396 $ 86,948,191
Business-type activities:
Debt payable:
General obligation bonds payable
$ 203,735,000 $ 50,360,000 $ (19,980,000) $ 234,115,000 $ 18,535,000
Premium on general obligation
bonds
21,470,590
3,051,332
(1,820,166) 22,701,756
-
Excise tax obligations
37,557,000 18,880,000
(4,417,000) 52,020,000
4,625,000
Premium on excise tax obligations
5,118,194
1,395,815
(962,236)
5,551,773
-
Revenue obligations - direct
placement
64,120,000
-
(2,875,000) 61,245,000
2,980,000
Premium on revenue obligations
9,295,237
-
(546,779)
8,748,458
-
2010 WIFA Loan
582,476
-
(109,572)
472,904
112,929
2010 WIFA Loan
4,048,839
-
(778,018)
3,270,821
793,579
Debt Principal
345,927,336 73,687,147 (31,488,771) 388,125,712 27,046,508
Compensated absences
2,883,654
-
(101,651)
2,782,003
1,036,317
SBITAs
342,455
264,630
(162,698)
444,387
162,967
Business-type activities long-
term
$ 349,153,445 $ 73,951,777 $ (31,753,120) $ 391,352,102 $ 28,245,792
The long-term liabilities at June 30, 2025 have been reduced by deposits made with the City’s fiscal agent for July
1, 2025 maturities. For the governmental activities, claims and judgments and compensated absences are
generally liquidated by the General Fund.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
63
NOTE 9 - LONG-TERM DEBT (Continued)
Bonds payable on June 30, 2025, are comprised of the following:
Purpose
Original Amount
Interest Rate Maturity Date Outstanding Balance
General Obligation Bonds
2015A Capital Improvement Serial Bonds due in annual
installments of $1,740,000 to $2,925,000
$
43,965,000
1.0-3.75%
7/1/2035 $
20,855,000
2016A Capital Improvement Serial Bonds due in annual
installments of $540,000 to $880,000
13,630,000
2.0-3.0%
7/1/2036
8,365,000
2016B Capital Improvement Refunding Serial Bonds due in
annual installments of $3,550,000 to $17,935,000
86,440,000
2.0-4.0%
7/1/2029
34,065,000
2017 Capital Improvement Serial Bonds due in annual
installments of $970,000 to $2,390,000
32,810,000
2.0-5.0%
7/1/2037
18,895,000
2018 Capital Improvement Serial Bonds due in annual
installments of $1,365,000 to $3,640,000
47,560,000
2.0-5.0%
7/1/2038
26,870,000
2019 Capital Improvement Serial Bonds due in annual
installments of $1,635,000 to $3,785,000
52,120,000
2.0-5.0%
7/1/2039
40,640,000
2020A Capital Improvement Serial Bonds due in annual
installments of $750,000 to $1,430,000
24,165,000
2.6 %
7/1/2040
18,015,000
2020B Capital Improvement Refunding Serial Bonds due in
annual installments of $2,355,000
34,580,000
1.3 %
7/1/2030
13,675,000
2021 Capital Improvement Serial Bonds due in annual
installments of $660,000 to $2,240,000
22,545,000
5.0 %
7/1/2041
18,210,000
2022 Capital Improvement Serial Bonds due in annual
installments of $2,910,000 to $6,415,000
90,330,000
3.0-5.0%
7/1/2042
77,305,000
2023 Capital Improvement Serial Bonds due in annual
installments of $1,745,000 to $8,865,000
63,325,000
5.0 %
7/1/2043
49,060,000
2024 Capital Improvement Serial Bonds due in annual
installments of $5,630,000 to $7,625,000
110,675,000
4.1-5.0%
7/1/2044
105,045,000
2025 Capital Improvement Serial Bonds due in annual
installments of $3,790,000 to $10,990,000
126,485,000
5.0 %
7/1/2045
126,485,000
Total General Obligation Bonds $
748,630,000
$
557,485,000
Special Assessment Bonds
ID 180 Special Assessment Bonds Payable with Governmental
Commitment due in annual installments of $760,000 to
$1,925,000
$
25,190,000
5.0 %
1/1/2029 $
7,170,000
Total Special Assessment Bonds
$
25,190,000
$
7,170,000
Excise Tax Revenue Bonds
2016 Excise Tax Revenue and Refunding Obligations due in
annual installments of $1,135,000 to $7,510,000
$
42,485,000
2.0-5.0%
7/1/2031 $
12,150,000
2017 Transit Excise Tax Revenue Refunding Obligations due in
annual installments of $150,000 to $1,460,000
19,305,000
2.8 %
7/1/2032
12,855,000
2019 Excise Tax Revenue Refunding Obligations due in annual
installments of $1,000,000 to $1,515,000
9,110,000
5.0-6.5%
7/1/2029
5,655,000
2020 Excise Tax Revenue Obligation due in annual installments
of $475,000 to $840.000
13,160,000
2.7 %
7/1/2040
10,520,000
2021 Excise Tax Revenue Refunding Obligations due in annual
installments of $510,000 to $5,460,000
14,695,000
0.2-1.8%
7/1/2032
4,855,000
2021 Excise Tax Revenue Refunding Obligations due in annual
installments of $560,000 to $2,240,000
28,890,000
0.2-2.4%
7/1/2037
22,565,000
2021 Excise Tax Revenue Refunding Obligations due in annual
installments of $275,000 to $550,000
6,170,000
1.0-5.0%
7/1/2036
3,705,000
2024 Excise Tax Revenue Refunding Obligations due in annual
installments of $275,000 to $550,000
14,595,000
1.0-5.0%
7/1/2036
13,290,000
2025 Excise Tax Revenue Refunding Obligations due in annual
installments of $520,000 to $1,445,000
$
18,880,000
1.0-5.0%
7/1/2045 $
18,880,000
Total Excise Tax Revenue Bonds $
167,290,000
$
104,475,000
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
64
NOTE 9 - LONG-TERM DEBT (Continued)
Purpose
Original Amount
Interest Rate Maturity Date Outstanding Balance
Water And Sewer Revenue Obligation Bonds
2020 Water and Sewer Revenue Obligations due in annual
installments of $1,380,000 to $2,415,000
$
38,000,000
2.7 %
7/1/2040 $
30,350,000
2021 Water and Sewer Revenue Obligations due in annual
installments of $1,025,000 to $2,715,000
35,480,000
5.0 %
7/1/2041
30,895,000
Total Water and Sewer Revenue Obligation Bonds $
73,480,000
$
61,245,000
Certificates of Participation
Certificate of Participation due in annual installments of
$7,000,000 to $27,810,000
$
343,000,000
0.4-2.6%
7/1/2037 $
297,190,000
Total Certificates of Participation $
343,000,000
$
297,190,000
Water Infrastructure Finance Authority Loans
WIFA loan #92A174-10 due in annual installments of
$69,678 to $123,631
$
1,884,503
1.5-1.56%
7/1/2029 $
472,904
WIFA loan #92A175-10 due in annual installments of
$578,079 to $842,152
14,045,799
0.5-1.5%
7/1/2029
3,270,821
Total WIFA Loans $
15,930,302
$
3,743,725
Total Debt $ 1,380,520,302
$
1,031,308,725
Debt Service Requirements The following is a summary of total debt service cash requirements to maturity:
General Obligation
Special Assessment
Excise Tax Obligation
Fiscal Year
Principal
Interest
Principal
Interest
Principal
Interest
2026
$
27,180,000 $
14,625,135 $
1,665,000 $
316,875 $
4,405,000 $
1,333,871
2027
20,120,000
13,239,194
1,745,000
231,625
4,495,000
1,244,148
2028
20,950,000
12,412,754
1,835,000
142,125
4,595,000
1,148,342
2029
20,675,000
11,556,241
1,925,000
48,125
4,705,000
1,030,810
2030
18,000,000
10,701,316
-
-
4,370,000
907,237
2031-2035
84,385,000
41,620,869
-
-
23,550,000
2,816,674
2036-2040
78,130,000
23,251,184
-
-
6,335,000
413,966
2041-2045
53,930,000
6,297,553
-
-
-
-
$
323,370,000 $
133,704,246 $
7,170,000 $
738,750 $
52,455,000 $
8,895,048
Governmental Activities
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
65
NOTE 9 - LONG-TERM DEBT (Continued)
Governmental Activities
Certificates of Participation
Fiscal Year
Principal
Interest
Total principal
Total interest
2026
$
20,335,000 $
6,031,065 $
53,585,000 $
22,306,946
2027
21,380,000
5,790,095
47,740,000
20,505,062
2028
22,225,000
5,491,630
49,605,000
19,194,851
2029
23,075,000
5,141,364
50,380,000
17,776,540
2030
23,625,000
4,737,321
45,995,000
16,345,874
2031-2035
130,025,000
16,315,759
237,960,000
60,753,302
2036-2040
56,525,000
2,165,019
140,990,000
25,830,169
2041-2045
-
-
53,930,000
6,297,553
$
297,190,000 $
45,672,253 $
680,185,000 $
189,010,297
Business-Type Activities
General Obligation
Excise Tax Obligation
Revenue Obligation
Fiscal Year
Principal
Interest
Principal
Interest
Principal
Interest
2026
$
18,535,000 $ 10,959,523 $
4,625,000 $ 2,517,134 $
2,980,000 $
2,349,025
2027
14,495,000
10,032,479
5,940,000
2,231,120
3,090,000
2,239,388
2028
15,175,000
9,397,489
5,675,000
1,979,955
3,205,000
2,125,308
2029
12,015,000
8,752,354
5,945,000
1,715,630
3,320,000
2,006,535
2030
11,265,000
8,230,374
5,095,000
1,437,328
3,450,000
1,883,070
2031-2035
57,975,000
33,292,681
13,005,000
4,270,410
19,270,000
7,376,398
2036-2040
63,105,000
17,883,969
5,160,000
2,442,750
23,215,000
3,426,470
2041-2045
41,550,000
4,724,175
6,575,000
1,018,250
2,715,000
135,750
$ 234,115,000 $ 103,273,044 $ 52,020,000 $ 17,612,577 $ 61,245,000 $ 21,541,944
Business-Type Activities
WIFA
Fiscal Year
Principal
Interest
Total principal
Total interest
2026
$
906,508 $
23,750 $
27,046,508 $
15,849,432
2027
925,839
18,016
24,450,839
14,521,003
2028
945,595
12,149
25,000,595
13,514,901
2029
965,783
6,144
22,245,783
12,480,663
2030
-
-
19,810,000
11,550,772
2031-2035
-
-
90,250,000
44,939,489
2036-2040
-
-
91,480,000
23,753,189
2041-2045
-
-
50,840,000
5,878,175
$
3,743,725 $
60,059 $
351,123,725 $
142,487,624
New bonds On June 11, 2025, the City issued Tax-Exempt $126,485,000 Series 2025 General Obligation Bonds
were issued with maturities ranging from $3,790,000 to $10,990,000 to fund various project costs related to
streets, public safety, parks, and water/wastewater. The bond matures on 7/1/2045 with interest rate of 5.0%. The
Series 2025 General Obligation Bonds were publicly sold and are repaid from the HURF Fund, General Obligation
Debt Service Fund and Water and Wastewater Fund.
On June 12, 2025, the City issued $18,880,000 Series 2025 Excise Tax Revenue Obligation Bond with maturities
ranging from $520,000 to $1,445,000 to fund solid waste capital projects. The bond matures on 7/1/2045 with
interest rate of 1.00-5.00%.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
66
NOTE 9 - LONG-TERM DEBT (Continued)
Statutory Debt Limitation. In the absence of more restrictive bond authorization ballot limitations, the City is
subject to state statutory limitations on the amount of net bonded debt (exclusive of revenue and special
assessment bonds and purchase contracts) it may have outstanding. The statutory debt limitation is 20 percent of
the secondary assessed valuation for purposes of water, wastewater, open space preserves, artificial lighting,
parks, playgrounds and recreational facilities, law enforcement, fire and emergency services facilities and streets
and transportation facilities and 6 percent of the secondary assessed valuation for all other purposes.
At June 30, 2025, the 20 percent debt limitation was $1,000,544,506 with $474,313,637 of outstanding debt. This
provided a 20 percent debt margin of $526,230,869. The 6 percent debt limitation was $300,163,352 with
$133,358,241 of outstanding debt. This provided a 6 percent debt margin of $166,805,111. The voter authorized,
unissued debt, which is also subject to the statutory limitations of 20 percent and 6 percent, at June 30, 2025, was
$666,951,409.
Bond Covenants. The various bond indentures contain certain limitations and restrictions on annual debt service
requirements, maintenance and flow of monies through various restricted accounts, minimum amounts to be
maintained in various sinking funds, and minimum revenue bond coverages.
Debt Service Coverage for Governmental General Obligation Bonds. The governmental general obligations
are payable from ad valorem tax revenues to be levied on all taxable property within the City. Proceeds of the
bonds were used for general governmental purposes. The bonds are payable through July 1, 2045. Annual
principal and interest payments on the bonds were 140.03% of total fiscal year ended June 30, 2025 General
Obligation Debt Service Fund ad valorem taxes. The total principal and interest remaining to be paid on the bonds
is $457,074,246. Principal and interest paid for the current year and total ad valorem tax revenues were
$36,331,361 and $25,945,633 respectively.
Debt Service Coverage for Business-type Activities General Obligation Bonds. The business-type general
obligations are paid from the water and wastewater utility system revenues of the City. Proceeds of the bonds
were used for improvements and expansions to the City’s water and wastewater system. The bonds are payable
through July 1, 2045. Annual principal and interest payments on the bonds are expected to require less than
26.49% of total fiscal year ended June 30, 2025 water and wastewater utility system revenue. The total principal
and interest remaining to be paid on the bonds is $337,388,043. Principal and interest paid for the current year
and water and wastewater system revenues were $29,283,673 and $110,549,161, respectively.
Debt Service Coverage for Governmental Excise Tax Obligations. The City has pledged all future unrestricted
excise taxes to repay outstanding governmental excise tax obligations. Proceeds of the bonds were used for
general governmental purposes. The bonds are payable through July 1, 2045. Annual principal and interest
payments on the bonds are expected to require less than 4.44% of total fiscal year ended June 30, 2025 pledged
excise taxes. The total principal and interest remaining to be paid on the bonds is $1,872,500. Principal and
interest (net of Federal subsidy) paid for the current year and total pledged excise taxes were $10,205,919 and
$230,004,020, respectively.
Debt Service Coverage for Business-type Activities Excise Tax Obligations. The City has pledged all future
unrestricted excise taxes to repay outstanding business-type activities excise tax obligations. Proceeds of the
bonds were used for improvements and expansions to the City’s water and wastewater system. The bonds are
payable through July 1, 2045. Annual principal and interest payments on the bonds are expected to require less
than 2.67% of total fiscal year ended June 30, 2025 excise taxes. The total principal and interest remaining to be
paid on the bonds is $69,632,577. Principal and interest paid for the current year and total excise taxes were
$6,146,453 and $230,004,020, respectively.
Debt Service Coverage for Transit Excise Tax Obligations. For the repayment of transit excise tax obligation
bonds, the City has pledged all future excise taxes collected and paid under the 0.50% transportation excise tax.
Proceeds of the bonds were used for the construction of the City’s portion of the light rail system. The bonds are
payable through July 1, 2040. Annual principal and interest payments on the bonds are expected to require less
than 10.78% of total fiscal year ended June 30, 2025 transit excise taxes. The total principal and interest
remaining to be paid on the bonds is $53,103,998. Principal and interest paid for the current year and transit
excise taxes were $4,689,034 and $55,759,709 respectively.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
67
NOTE 9 - LONG-TERM DEBT (Continued)
Debt Service Coverage for Arts and Culture Excise Tax Obligations. For the repayment of arts and culture
excise tax obligation bonds, the City has pledged all future excise taxes collected and paid under the 1.0% arts
and culture excise tax. Proceeds of the bonds were used for the repair of the roof of the Tempe Center for the
Arts. The bonds are payable through July 1, 2036. Annual principal and interest payments on the bonds are
expected to require less than 4.50% of total fiscal year ended June 30, 2025 arts and culture excise taxes. The
total principal and interest remaining to be paid on the bonds is $6,373,550. Principal and interest paid for the
current year and arts and culture excise taxes were $582,000 and $11,151,942, respectively.
Arbitrage. Under U.S. Treasury Department regulations, all government tax-exempt debt issued after August 31,
1986 is subject to arbitrage rebate requirements. The requirements stipulate, in general, the earnings from the
investment of tax-exempt bond proceeds that exceed related interest expenditures on the bonds must be remitted
to the Federal government on every fifth anniversary of each bond issue. The City has evaluated each general
obligation bond and revenue bond issue subject to the arbitrage rebate requirements and has determined that no
liability exists at June 30, 2025.
NOTE 10 - BONDS TO BE PAID FROM ASSETS HELD IN TRUST
Advance Bond Refundings
Future debt service on refunded bonds has been provided through advance refunding bond issues. Under an
advance refunding arrangement, refunding bonds are issued and the net proceeds, plus any additional resources
that may be required, are used to purchase securities issued or guaranteed by the United States government.
These securities are then deposited in an irrevocable trust under an escrow agreement which provides that all
proceeds from the trust will be used to fund the principal and interest payments of the previously issued bonded
debt being refunded. The trust deposits have been computed so that the securities in the trust, along with future
cash flow generated by the securities, will be sufficient to service the previously issued bonds.
Bonds which have been advance refunded (and thus not included in the debt of the City) and are still outstanding
as of June 30, 2025 are as follows:
$32,810,000 general obligation bonds issued in 2017 and partially defeased
in 2018 (final redemption date is 7/1/2027)
$ 4,070,000
$47,560,000 general obligation bonds issued in 2018 and partially defeased
in 2019 (final redemption date is 7/1/2028)
9,030,000
Total bonds advance refunded
$ 13,100,000
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
68
NOTE 11 – LEASES
City as Lessor
The City, as a lessor, has entered into lease agreements involving land, baseball facilities and building spaces.
The related receivables under the lease agreements have been recorded at the present value of their future
minimum lease payments as of the inception date in both the General Fund and the Transit Special Revenue
Fund. The leases have interest rates between 0.316% and 3.397%. The General Fund reported lease revenue of
$2,726,021 and the related interest revenue of $500,753. Transit Special Revenue Fund reported lease revenue
of $58,688 and the associated interest revenue of $1,611. At this time, the City has no variable or other lease
matters not previously included in the measurement of the lease receivable. The leasing of asset is not the City’s
principal operation.
City as Lessee
The City, as a lessee, has entered into a lease agreement for the use of Hohokam Court. An initial lease liability
was recorded in the amount of $1,294,308. As of June 30, 2025, the value of the lease liability is $616,437. City of
Tempe, AZ is required to make monthly fixed payments of $21,134. The lease has an interest rate of 2.19%. The
buildings estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of June 30, 2025 of $1,294,308 with accumulated amortization of $716,481.
Fiscal Year Principal Payments Interest Payments Total Payments
2026
$242,536
$11,075
$253,611
2027
247,901
5,710
253,611
2028
126,000
806
126,806
$616,437
$17,591
$634,028
NOTE 12 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENT (SBITA)
The City has obtained the right to use various desktop and server software subscriptions, cloud backup service
software, document management software, computer-aided dispatch software, web-based job performance
software, debt management software, public safety management software under the provision of various
subscription-based information technology arrangements. The total amount of subscription assets and the related
accumulated amortization are as follows:
Total intangible right-to-use IT software
$
6,571,794
Less: accumulated amortization
(2,882,564)
Carrying value
$
3,689,230
The following schedule details minimum subscription payments to maturity for the City’s subscription liability at
June 30, 2025:
Governmental Activities
Fiscal Year Principal Payments Interest Payments
Total Payments
2026 $
1,386,257 $
60,844 $
1,447,101
2027
910,092
26,854
936,946
2028
49,197
2,403
51,600
2029
50,045
1,555
51,600
2030
50,907
693
51,600
2031
14,090
37
14,127
$
2,460,588 $
92,386 $
2,552,974
Business-Type Activities
Fiscal Year Principal Payments Interest Payments
Total Payments
2026 $
162,967 $
12,616 $
175,583
2027
169,491
7,706
177,197
2028
54,473
2,608
57,081
2029
57,456
1,339
58,795
$
386,931 $
22,930 $
409,861
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
69
NOTE 13 – PUBLIC-PRIVATE AND PUBLIC-PUBLIC PARTNERSHIPS
GASB 94, “Public-Private and Public-Public Partnerships (PPPs) and Availability Payment Arrangements
(APAs)" (GASB 94) defines a PPP as an arrangement in which the 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 asset (the underlying PPP asset), for a period of time in an exchange or
exchange-like transaction type of public-private or public-public partnership. The City determined that golf courses
met the criteria set forth in GASB 94 and therefore included the agreement in the financial statements as deferred
inflows of resources. The City manages a public golf course system, which offers affordable greens fees and
discount programs. Rolling Hill golf course is leased under agreement with an operator, which provides for
activities such as golf course management, clubhouse operation, and food and beverage concession. The
operator collects user fees and are responsible for the day-to-day operations of the golf courses. The operator is
required to operate and maintain the golf courses and make installment payments to the City, in accordance with
the contract.
As of June 30, 2025, the present value of the installment payments under contract was $6 million and reported as
deferred inflows of resources in the statement of net position. The present values of the installment payments
were calculated using discount rate of 3.6% for the term of the agreement. The lease term was 30 years as of
June 30, 2025. The City recognized $241,406 as revenue and $222,097 as interest revenue. The City primarily
used the proceeds to fund future golf course capital improvements. The acquisition value of the golf courses,
including land and buildings, was reported at $3.5 million as of June 30, 2025.
NOTE 14 – FUND BALANCE/NET POSITION CLASSIFICATIONS
During the year ended June 30, 2011, the City implemented the provisions of GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions. GASB Statement No. 54 establishes standards for
financial reporting, including note disclosure requirements, for fund balance classifications of the governmental
funds, and clarifies existing governmental fund type definitions.
In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the
extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds
can be spent. The classifications of fund balance are Non-spendable, Restricted, Committed, Assigned, and
Unassigned. Committed, Assigned, and Unassigned represent the amount that is available for discretionary
spending.
Non-spendable fund balance includes amounts that cannot be spent because either 1) it is not in a spendable
form, such as inventory or prepaid items or 2) legally or contractually required to be maintained intact.
Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors, grantors,
contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling
legislation (changes in City Charter).
Committed fund balance is self-imposed limitations imposed at the highest level of decision-making authority,
namely, Mayor and Council. Mayor and Council approval (through ordinance or resolution, both of which are
considered the highest level of decision-making authority of the City) is required to commit resources or to rescind
the commitment.
Assigned fund balance represents limitations imposed by management. In June 2011, through resolution
2011.56, the Mayor and Council authorized the Chief Financial Officer to assign fund balance amounts for specific
purposes.
Unassigned fund balance represents the residual net resources in excess of the other classifications. The
General Fund is the only fund that can report a positive unassigned fund balance and any governmental fund can
report a negative unassigned fund balance. In other governmental funds it is not appropriate to report a positive
unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures
incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes,
it may be necessary to report a negative unassigned fund balance in that fund. When both restricted and
unrestricted resources are available for specific expenditures, restricted resources are considered spent before
unrestricted resources. Within unrestricted resources, committed and assigned are considered spent (if available)
before unassigned amounts.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
70
NOTE 14 – FUND BALANCE CLASSIFICATIONS/NET POSITION (Continued)
As of June 30, 2025, the fund balance details by classification are listed as follows:
The Mayor and Council have established a minimum unassigned fund balance policy for the General Fund of 20%
to 30% of current year operating revenues. As of June 30, 2025, the unassigned fund balance is 36.9% of General
Fund revenues.
General
Transit
Special
Revenue
General
Obligation
Debt Service
Community
Development
Capital Projects
Total Other
Governmental
Funds
Total
Governmental
Funds
Non-spendable:
Inventory
$
166,780
$
-
$
-
$
-
$
663,502
$
830,282
Prepaid Items
61,976
-
-
-
1,730,292
1,792,268
Leases - net
1,457,294
12,703
-
-
-
1,469,997
1,686,050
12,703
-
-
2,393,794
4,092,547
Restricted:
Debt Service
-
-
1,919,139
-
253,280
2,172,419
Highway User Revenue
-
-
-
-
9,781,432
9,781,432
Other
-
-
-
-
9,422,156
9,422,156
Capital projects -
development impact fees
-
-
-
-
10,363,198
10,363,198
Capital projects
-
60,582,985
-
-
29,138,162
89,721,147
-
60,582,985
1,919,139
–
58,958,228
121,460,352
Committed to:
Encumbrance
1,912,718
180,332
-
28,468,516
15,636,846
46,198,412
MaryAnne Corder
Neighborhood Program
323,768
-
-
-
-
323,768
Capital projects
-
18,517,723
-
-
384,636
18,902,359
2,236,486
18,698,055
-
28,468,516
16,021,482
65,424,539
Assigned to:
Debt Service Reserve
25,000,000
-
-
-
-
25,000,000
Capital Project Reserve
10,625,337
23,761,057
-
-
38,693,082
73,079,476
Other
3,000,000
-
-
-
-
3,000,000
38,625,337
23,761,057
-
-
38,693,082
101,079,476
Unassigned:
116,399,149
(517,637)
-
(24,368,877)
(28,399,166)
63,113,469
Total fund balances
$
158,947,022
$
102,537,163
$
1,919,139
$
4,099,639
$
87,667,420
$
355,170,383
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
71
NOTE 15 - COMMITMENTS
The City has active construction projects as of June 30, 2025. At year end the government’s commitments
with contractors are as follows:
Commitment
Construction in
Progress
Governmental funds:
Transit capital projects
$
7,121,641 $
4,370,118
Community development
capital projects
45,286,214
49,486,571
Non-Major governmental funds
32,452,418
20,822,651
$
84,860,273 $
74,679,340
Commitment
Construction
in Progress
Proprietary funds:
Water and wastewater
$
40,671,689 $
36,523,381
$
40,671,689 $
56,873,259
NOTE 16 - RETIREMENT PLANS
The City contributes to the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement
System (PSPRS) for police officers and fire fighters. The plans are component units of the State of Arizona. The
City also contributes to the Elected Officials Retirement Plan; however, the plan is not described below because of
its relative insignificance to the financial statements. The City has also established a single-employer, post-
employment health benefit plan (see Note 17 - OTHER POST-EMPLOYMENT BENEFITS).
Amounts reported at June 30, 2025 represent June 30, 2024 measurement dates for both the Arizona State
Retirement System and the Public Safety Personnel Retirement System, which is the latest information available.
Aggregate Amounts. At June 30, 2025, the City reported the following amounts related to pensions and OPEB
for all plans to which it contributes. The ASRS and PSPRS OPEB plans are not included in the notes as the
liability and related deferred inflows of resources, deferred outflows of resources, and OPEB expense are not
material to the financial statements.
ASRS
PSPRS - Fire
PSPRS - Police
Total
Net pension liabilities
$ 125,350,992 $ 25,137,361 $
47,540,126 $
198,028,479
Deferred outflows of resources
11,980,369
15,844,288
29,105,467
56,930,124
Deferred inflows of resources
8,521,781
1,151,216
2,170,309
11,843,306
Expense
12,257,399
8,932,867
18,219,562
39,409,828
Deferred outflows of resources -
Contributions
13,261,981
4,363,360
9,412,211
27,037,552
ASRS
PSPRS - Fire
PSPRS - Police
City OPEB
plan (Note 16)
Total
Net OPEB assets
$
4,814,189
$
711,600
$
-
$
-
$
5,525,789
Net OPEB liabilities
20,600
-
1,504,867
85,395,942
86,921,409
Deferred outflows of resources
263,340
94,388
72,333
318,593
748,654
Deferred inflows of resources
1,880,901
239,775
632,071
3,042,140
5,794,887
Expense
741,499
(85,510)
60,771
2,618,422
3,335,182
Deferred outflows of resources
- Contributions
164,133
-
93,153
-
257,286
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
72
NOTE 16 - RETIREMENT PLANS (Continued)
A.
Arizona State Retirement System
Plan Description. City employees not covered by the other pension plans described after this section participate
in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined
benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB)
plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State
Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2
and 2.1. ASRS is a component of the State of Arizona. The ASRS issues a publicly available financial report that
includes its financial statements and required supplementary information. The report is available on the ASRS
website at www.azasrs.gov.
Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long-term disability,
and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of
age, average monthly compensation, and service credit as follows:
Retirement Initial Membership Date:
Before July 1, 2011
On or After July 1, 2011
Years of service and age required to
receive benefit
Sum of years and age equals 80
10 years age 62
5 years age 50*
Any years age 65
30 years age 55
25 years age 60
10 years age 62
5 years age 50*
Any years age 65
Final average salary is based on
Highest 36 months of last 120
months
Highest 60 months of last 120
months
Benefit percent per year of service
2.1% to 2.3%
2.1% to 2.3%
*With actuarially reduced benefits
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic
cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after
September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a
member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen.
For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s
contributions and employer’s contributions, plus interest earned.
Retired and disabled members, with at least five years of credited service, are eligible to receive health insurance
premium benefits. The benefits are payable only with respect to allowable health insurance premiums for which
the member is responsible. For members with 10 or more years of service, benefits range from $100 per month to
$260 per month depending on the age of the member and dependents. For members with five to nine years of
service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed
years of service.
Active members are eligible for a long-term disability benefit in the event they become unable to perform their
work. The monthly benefit is equal to two-thirds of their monthly earnings. Members receiving benefits continue to
earn service credit up to their normal retirement dates. Members with long-term disability commencement dates
after June 30, 1999 are limited to 30 years of service or the service on record as of the effective disability date if
their service is greater than 30 years.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
73
NOTE 16 - RETIREMENT PLANS (Continued)
A.
Arizona State Retirement System (continued)
Contributions. In accordance with state statutes, annual actuarial valuations determine active member and
employer contribution requirements. The combined active member and employer contribution rates are expected
to finance the costs of benefits employees earn during the year, with an additional amount to finance any
unfunded accrued liability. For the year ended June 30, 2025, active ASRS members were required by statute to
contribute at the actuarially determined rate of 12.12 percent of the members’ annual covered payroll, and the City
was required by statute to contribute at the actuarially determined rate of 12.05 percent of the active members’
annual covered payroll. The City’s contributions to the pension plan for the year ended June 30, 2025 was
$13,261,981.
Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members who return to work
in positions that would typically be filled by an employee who contributes to ASRS. The City was required by
statute to contribute at the actuarially determined rate of 10.14%. ACR contributions are included in employer
contributions presented above. The City’s pension contributions are paid by the same funds as the employee’s
salary, with the largest component coming from the General Fund.
Pension Liability. At June 30, 2025, the City reported $125,350,992 for its proportionate share of the ASRS’ net
pension liability. The net asset and net liabilities were measured as of June 30, 2024. The total liability used to
calculate the net asset or net liability was determined using update procedures to roll forward the total liability from
an actuarial valuation as of June 30, 2023, to the measurement date of June 30, 2024. The City’s proportion of the
net liability was based on the City’s actual contributions to the applicable plan relative to the total of all
participating employers’ contributions to the plan for the year ended June 30, 2024. The City’s proportions
measured as of June 30, 2024, and the change from its proportions measured as of June 30, 2023, were
0.73680% decreased (0.04660)% from last year.
Actuarial Assumptions. The significant actuarial assumptions used to measure the total ASRS pension liabilities
are as follows:
Actuarial valuation date
June 30, 2023
Actuarial roll forward date
June 30, 2024
Actuarial cost method
Entry age normal
Investment rate of return
7.0%
Projected salary increases
2.9-8.4%
Inflation
2.3%
Permanent base increases
Included
Mortality rates
2017 SRA Scale U-MP
Actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience
study for the 5-year period ended June 30, 2020. The purpose of the experience study was to review actual
experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study
recommended changes which were applied to the June 30, 2020 actuarial evaluation.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
74
NOTE 16 - RETIREMENT PLANS (Continued)
A.
Arizona State Retirement System (Continued)
The long-term expected rate of return on ASRS plan investments was determined to be 7.0 percent using a
building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage excluding any expected inflation. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Public equity
44%
4.48%
Credit
23
4.40
Real estate
17
6.05
Private equity
10
6.11
Interest rate sensitive
6
(0.45)
Total
100%
Pension Expense and Deferred Outflows/Inflows of Resources. The City has deferred outflows and inflows of
resources related to the net pension liabilities. Certain changes in the net pension liability are recognized as
pension expense over a period of time rather than the year of occurrence. For the year ended June 30, 2025, the
City recognized $12,257,399 in pension expense.
The City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience
$
6,996,975 $
-
Difference between expected and actual investment
earnings
-
8,005,033
Changes in proportion and differences between the
City contributions and proportionate share of
contributions
4,983,394
516,749
Contributions subsequent to the measurement date
13,261,981
-
Total
$
25,242,350 $
8,521,782
The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date
as reported in the table above will be recognized as an adjustment of the net pension liability in the year ended
June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense for the following June 30 roll forward dates:
Deferred Outflows
(Inflows) of
Resources
2026
$
(1,538,466)
2027
8,492,408
2028
(2,026,337)
2029
(1,469,018)
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
75
NOTE 16 - RETIREMENT PLANS (Continued)
A.
Arizona State Retirement System (Continued)
Discount Rate. At June 30, 2024, the discount rate used to measure the ASRS total pension liability was 7.0
percent. The projection of cash flows used to determine the discount rate assumed that contributions from
participating employers will be made based on the actuarially determined rates based on the ASRS Board’s
funding policy, which establishes the contractually required rate under Arizona statute. Based on those
assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The
following presents the City’s proportionate share of the net pension liability calculated using the discount rate of
7.0 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using
a discount rate that is 1-percentage-point lower or 1-percentage point higher than the current rate:
1% Decrease
Current Discount
Rate
1% Increase
6.0%
7.0%
8.0%
$
191,938,001 $
125,350,992 $
69,856,533
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is
available in the separately issued ASRS financial report. The report is available on the ASRS website at
www.azasrs.gov.
B.
Public Safety Personnel Retirement System
Plan Descriptions. City public safety employees who are regularly assigned hazardous duty participate in the
Public Safety Personnel Retirement System (PSPRS). Public safety employees who became members on or after
July 1, 2017, may participate in the Public Safety Personnel Defined Contribution Retirement Plan (PCPDCRP).
The PSPRS administers an agent multiple-employer defined benefit pension plan and an agent multiple-employer
defined benefit health insurance premium benefit (OPEB) plan. A nine-member board known as the Board of
Trustees and the participating local boards govern the PSPRS according to the provisions of A.R.S. Title 38,
Chapter 5, Article 4. Employees who were PSPRS members participate in the agent plans. The PSPRS issues a
publicly available financial report that includes their financial statements and required supplementary information.
This report is available on the PSPRS website at www.psprs.com.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
76
NOTE 16 - RETIREMENT PLANS (Continued)
B.
Public Safety Personnel Retirement System (continued)
Benefits Provided. The PSPRS provide retirement, disability, and survivor benefits. State statute establishes
benefits terms. Certain retirement and disability benefits are calculated on the basis of age, average monthly
compensation, and service credit as follows. See the publicly available PSPRS financial reports for additional
benefits information.
Retirement Initial Membership Date:
Before January 1, 2012
(Tier 1)
On or After January 1,
2012 (Tier 2)
On or After January 1,
2017 (Tier 3)
Retirement and
Disability:
Years of service and age
required to receive
benefit
20 years any age
15 years age 62
25 years or 15 years of
credited service and age
52.5
15 years and age 55
Final average salary is
based on
Highest 36 months of last
20 years
Highest 60 months of last
20 years
Highest 60 months of last
15 years
Normal retirement
50% less 2.0% for each
year of credited service
less than 20 years or plus
2.0% to 2.5% for each year
of credited service over 20
years, not to exceed 80%
1.5% to 2.5% per year of
credited service, not to
exceed 80%
1.5% to 2.5% per year of
credited service, not to
exceed 80%
Accidental disability
retirement
50% or normal retirement, whichever is greater
Catastrophic disability:
90% of average monthly benefit compensation. After 60 months,
member receives greater of 62.5% average monthly benefit
compensation and accrued normal pension
Ordinary disability
retirement
Normal retirement calculated with actual years of credited service or 20 years of
credited service, whichever is greater, multiplied by years of credited service (not to
exceed 20 years) divided by 20
Survivor benefit:
Retired members
80%-100% of retired member’s pension benefit
Active members
80% to 100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. PSPRS
also provides temporary disability benefits of 50 percent of the member's compensation for up to 12 months.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
77
NOTE 16 - RETIREMENT PLANS (Continued)
B.
Public Safety Personnel Retirement System (continued)
Health insurance premium benefits are available to retired or disabled members with 5 years of credited service.
The benefits are payable only with respect to allowable health insurance premiums for which the member is
responsible. Benefits range from $100 per month to $260 per month depending on the age of the member and
dependents.
Employees Covered by Benefit Terms. At the June 30, 2025, the following employees were covered by the
agent pension plans’ benefit terms:
PSPRS – Police
PSPRS – Fire
Inactive plan members or beneficiaries
currently receiving benefits
336
154
Inactive, entitled plan members not yet
receiving benefits
99
43
Active plan members
292
140
Total
727
337
Contributions. State statutes establish the pension contribution requirements for active PSPRS employees. In
accordance with state statutes, annual actuarial valuations determine employer contribution requirements for
PSPRS pension and health insurance premium benefits. The combined active member and employer contribution
rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to
finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2025, are indicated below.
Rates are a percentage of active members’ annual covered payroll.
Active
City Portion
PSPRS – Police
7.65-11.65%
21.85-26.89%
PSPRS – Fire
7.65-11.65%
21.94-30.05%
In addition, statue required the City to contribute at the actuarially determined rate of 13.21% for police and
13.21% for fire of annual covered payroll of retired members who worked for the City in positions that an
employee who contributes to the PSPRS would typically fill and employees participating in the PSPRS Tier 3 Risk
Pool in addition to the City’s required contributions to the PSPRS Tier 3 Risk Pool.
The City’s contribution to the plans for the year ended June 30, 2025 were:
PSPRS – Police
PSPRS – Fire
$
9,412,211 $
4,363,360
The City pension contributions are paid by the same funds as the employee’s salary, with the largest component
coming from the General Fund.
Pension Liability. At June 30, 2025, the City reported the following liabilities.
PSPRS - Police
PSPRS - Fire
$
47,540,126 $
25,137,361
The net pension liabilities were measured as of June 30, 2024, and the total liability used to calculate the net
asset or liability was determined by an actuarial valuation as of that date.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
78
NOTE 16 - RETIREMENT PLANS (Continued)
B.
Public Safety Personnel Retirement System (continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension liability for both
police and fire are as follows:
Actuarial valuation date
June 30, 2024
Actuarial cost method
Entry age normal
Investment rate of return
7.20%
Wage inflation
2.75-15.0%
Price inflation
2.5%
Cost-of-living adjustment
1.85%
Mortality rates
PubS-2010 tables
Actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience
study for the 5-year period ended June 30, 2021. The purpose of the experience study was to review actual
experience in relation to the actuarial assumptions in effect. The PSPRS Board adopted the experience study
recommended changes which were applied to the June 30, 2022 actuarial valuation.
The long-term expected rate of return on PSPRS plan investments was determined to be 7.20 percent using a
building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of plan investment expenses and inflation) are developed for each major asset class. The target allocation and
best estimates of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected
Geometric Real
Rate of Return
U.S. Public Equity
24% 2
3.62%
International Public Equity
16
4.47
Global Private Equity
27
2
7.05
Core Bonds
6
2
2.44
Private Credit
20
2
6.24
Diversifying Strategies
5
3.15
Cash
2
0.89
Total
100%
Discount Rates. At June 30, 2024, the discount rate used to measure the total pension liability was 7.20 percent,
which was a decrease of 0.1 from the discount rate used as of June 30, 2021. The projection of cash flows used
to determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that employer contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, the 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 investment was applied to all periods of projected benefit payments to determine
the total pension liability.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
79
NOTE 16 - RETIREMENT PLANS (Continued)
B.
Public Safety Personnel Retirement System (continued)
Changes in Net Pension Liabilities
PSPRS - Police
PSPRS - Fire
Beginning Balance (Assets) Liability
$45,500,963
$ 26,846,749
Total Liability Factors:
Service cost
6,867,606
4,295,872
Interest
31,364,866
18,320,836
Difference between expected and actual
experience with regard to economic and
13,247,711
4,577,233
Benefit payments
(24,001,807)
(15,513,198)
Net change
27,478,376
11,680,743
Plan Fiduciary Net Position:
Contributions - employer
6,920,155
4,387,484
Contributions - employee
2,890,364
1,441,829
Projected net investment income
39,793,155
23,152,421
Benefit payments
(24,001,807)
(15,513,198)
Administrative expenses
(162,654)
(78,405)
Net Change
25,439,213
13,390,131
Ending Balance (Asset) Liability
$47,540,126
$ 25,137,361
Sensitivity of the Net Pension (Assets)/Liabilities to Changes in the Discount Rate. The following presents
the City’s net pension (asset) liability calculated using the discount rates noted above, as well as what the net
(asset) liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-
percentage-point higher than the current rate:
1% Decrease
Current Discount
Rate
1% Increase
6.2%
7.2%
8.2%
PSPRS - Police
$ 111,555,159
$
47,540,126
$
(4,525,208)
PSPRS - Fire
$
59,516,411
$
25,137,361
$
(3,103,973)
Pension Plan Fiduciary Net Position. Detailed information about the pension plans’ fiduciary net position is
available in the separately issued PSPRS financial report. The report is available on the PSPRS website at
www.psprs.com.
Expense. For the year ended June 30, 2025, the City recognized the following as pension expense:
PSPRS -
Police
PSPRS -
Fire
$ 18,219,562 $ 8,932,867
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
80
NOTE 16 - RETIREMENT PLANS (Continued)
B.
Public Safety Personnel Retirement System (continued)
Deferred Outflows/Inflows of Resources. At June 30, 2025, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
PSPRS - Police
PSPRS - Fire
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between
expected and actual
experience
$
26,430,220 $
292,234 $
13,775,449 $
-
Changes of assumptions
or other inputs
2,675,247
-
2,068,839
-
Net difference between
projected and actual
earnings on pension
plan investments
-
1,878,075
-
1,151,216
Contributions subsequent
to the measurement
date
9,412,211
-
4,363,360
-
Total
$
38,517,678 $
2,170,309 $
20,207,648 $
1,151,216
The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date
as reported in the table above will be recognized as an adjustment of the net pension liability in the year ended
June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
PSPRS - Police
PSPRS - Fire
2026 $
7,225,800 $
4,298,318
2027
11,021,135
7,046,940
2028
3,733,291
1,706,459
2029
2,746,980
878,483
2030
2,207,952
762,872
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
81
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS
The City offers (through a single employer defined benefit plan, the “City of Tempe Post-Employment Health
Plan”) additional post-employment health insurance benefits through an irrevocable trust. Other post-employment
healthcare benefits, like the cost of pension benefits, constitute an exchange of compensation for employee
services rendered. Like pension benefits, the cost of other post-employment benefits (OPEB) generally should be
associated with the periods in which the exchange occurs rather than in future periods in which the benefits are
provided. GASB Statement No. 74, “Financial Reporting for Post-employment Benefit Plans Other Than Pension
Plans”, effective with fiscal years beginning after June 15, 2016, requires certain financial reporting disclosures by
plans that administer OPEB benefits; those disclosures have been incorporated throughout this report. GASB
Statement No. 75, “Accounting and Financial Reporting for Post-employment Benefit Plans Other Than Pension
Plans”, effective with fiscal years beginning after June 15, 2017, requires certain financial reporting disclosures for
employers which also have been incorporated throughout this report.
A.
Plan Description
The City’s single-employer Post-Employment Health Plan is administered by the City’s Human Resources
Division, in accordance with Resolution 2019.75 of the City Council, to all retired, benefited employees who meet
the following eligibility requirements: (a) have at least 10 years of service, (b) be enrolled in one of the City's group
health insurance plans, and (c) at the time of retirement, be or have been eligible to receive benefits from one of
the City sponsored state retirement plans. Due to changes effective July 1, 2009, benefited employees hired after
June 30, 1999 are not eligible to participate in the post-employment benefit plan.
As of June 30, 2025, eligible members in the program are as follows:
Active beneficiaries
1,119
Active employees eligible
630
Total
1,749
Benefits provided. The plan provides benefits to eligible retirees, their spouses and dependents through monthly
City contributions to a health reimbursement account established for each retiree. The plan benefits and
contribution amounts are annually determined by the City’s Human Resources Division, in accordance with the
approved OPEB Health Plan, based on the costs of coverage that is available through the health plans offered by
the ASRS. Coverage for Medicare-eligible retirees is provided through fully-insured, City-sponsored Medicare
Supplemental plans. Medicare-eligible retirees who formally waive the coverage of the Medicare Supplemental
plans are eligible to receive a $100 monthly contribution to a health reimbursement account established for the
retiree. The provision of these benefits is discretionary, and the City is not legally or contractually obligated to
continue them.
Contributions. Contributions for benefits due are based on actual benefit payments during the fiscal year and are
not based on a measure of pay. Additional contributions to the trust can only be authorized by a majority of the
City Council. The total contributions for the year ended June 30, 2025 were $10,269,106.
Basis of Accounting and Valuation of Investments
An irrevocable trust fund (Other Post Employment Benefit Trust) has been established for the purpose of advance
funding the OPEB liability; the trust has a $22.5 million balance as of June 30, 2025. The investments of the trust
are overseen by the OPEB Retirement Investment Committee, consisting of three city employees appointed by
the City’s Deputy City Manager/Chief Financial Officer. Separate financial statements are not available for the
trust.
The Other Post Employment Benefit Trust financial statements are prepared on the accrual basis of accounting.
The City’s contributions are recognized when due and a formal commitment to provide the contribution has been
made. Benefits are recognized when due and payable in accordance with the terms of the plan. All trust
investments are reported at fair value. Fair value is determined based on quoted market prices.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
82
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
B.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the
net OPEB liability was determined by an actuarial valuation as of July 1, 2024. The components of the net OPEB
liability at June 30, 2025 were as follows:
Total OPEB liability
$ 107,912,808
Plan fiduciary net position
(22,516,866)
Net OPEB liability
$
85,395,942
Plan fiduciary net position as a percentage of total
OPEB liability
(20.9%)
Actuarial Assumptions. The total OPEB liability as of the July 1, 2024 actuarial valuation date was determined
using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Measurement date
June 30, 2025
Actuarial valuation date
July 1, 2024
Actuarial cost method
Entry age normal
Amortization method
Level percentage of payroll, closed
Asset valuation method
Market value
Actuarial assumptions:
Inflation rate
2.6%
Salary increases
3.0% per annum
Investment rate of return
6.5%
Discount rate
6.5%
Healthcare cost trend
ASRS/PSPRS Pre-Medicare, 5.0%; ASRS/ PSPRS
Medicare Supplement, 2.5% to 2.9%; City Medicare
Supplement, (2.0)% to 2.5%
Mortality rates
General: PubG.H-2010 Employee
Public Safety: PubS.H-2010 Employee
Male/Female and Generational with Projection Scale
MP-2021
The Total OPEB Liability was updated from the actuarial valuation date to the measurement date using standard
actuarial roll-forward techniques.
Investment policy. The City’s policy in regard to the allocation of invested assets is established and may be
amended by the OPEB Retirement Investment Committee by a majority of vote of its members. It is the policy of
the committee to pursue an investment strategy that reduces risk through the prudent diversification of the
portfolio.
Rate of return. The long-term rate of return on OPEB plan investments was determined using the building-block
method in which best-estimate ranges of expected future real rates of return (expected returns net of OPEB plan
investment expenses and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. The target allocation and best estimates of the
geometric real rates of return for each major asset class are summarized in the following table:
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
83
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Asset Class
Target Allocation
Long-Term Expected
Real Rates of Return
Equity
65%
4.3%
Fixed Income
35
2.3
Total
100%
Discount rate. The discount rate used to measure the Total OPEB Liability is 6.5%. 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 separately issued actuarial valuation report for the fiscal year ended June 30, 2025 may be obtained from the
City's Financial Services Department, 20 East 6th Street, Tempe, Arizona, 85281.
The change in the net OPEB liability during the year was as follows:
Changes in Net OPEB Liability
Total OPEB Liability
Plan Fiduciary Net
Position
Net OPEB Liability
Balance at 6/30/2024
$
109,976,679 $
20,154,930 $
89,821,749
Changes for the year:
Service cost
1,085,684
-
1,085,684
Interest
6,885,308
-
6,885,308
Differences between expected and
actual experience
234,243
-
234,243
Contributions for Benefits Due
-
10,269,106
(10,269,106)
Net Investment Income
-
2,361,936
(2,361,936)
Benefit payments
(10,269,106)
(10,269,106)
-
Net changes
(2,063,871)
2,361,936
(4,425,807)
Balance at 6/30/2025
$
107,912,808 $
22,516,866 $
85,395,942
Sensitivity of the Net OPEB liability. The following presents the net OPEB liability, as well as what the net
OPEB liability would be if it were calculated using a discount or healthcare cost trend rates that are 1-percentage
point lower or 1-percentage point higher than the current discount or healthcare cost trend rates:
5.5%
6.5%
7.5%
1% Decrease
No Change
1% Increase
Discount Rate
$ 93,127,527 $ 85,395,942 $ 78,594,995
Healthcare Cost Trend Rate
$ 76,980,612 $ 85,395,942 $ 94,962,173
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
84
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
C.
OPEB Expense and Deferred Outflows/Inflows of Resources related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense of $2,618,422 for the OPEB plan. At
June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
165,123 $
-
Changes of assumptions or other inputs
153,470
2,143,028
Difference between actual and expected investment earnings
-
899,112
Total
$
318,593 $
3,042,140
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Fiscal Year
Ended June 30,
Deferred
Outflow
(Inflows) of
Resources
2026
$
(1,623,173)
2027
(447,509)
2028
(442,491)
2029
(210,374)
NOTE 18 - DEFERRED COMPENSATION PLANS
The City offers its employees three compensation plans created in accordance with Internal Revenue Code,
Section 457 and 401(K). The plans, available to all City employees, permit them to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination, retirement, death or
unforeseeable emergency. The City’s fiduciary responsibility is that of exercising “due care” in selecting a third-
party administrator.
Federal legislation requires that Section 457 and 401(k) plan assets be held in trust for employees. As a result, the
employee assets held in Section 457 plans are neither the property of the City nor subject to claims of the City’s
general creditors. Therefore, the plan assets are not included in the City’s basic financial statements.
NOTE 19 - RISK FINANCING ACTIVITIES
The City is exposed to risks arising from general liability, automobile liability (physical damage and bodily injury),
property liability, workers compensation, and employee health claims.
The City has established a Risk Management Fund, Worker’s Compensation Fund and Health Fund (all internal
service funds) to account for and finance its uninsured risks of loss. Amounts are paid into the internal service
funds by all other funds and are available to pay claims and to fund claim reserves. As with any risk retention
program, the City is contingently liable in respect to claims beyond those actuarially projected. These interfund
premiums are used to cover the amount of claim expenditures reported in the internal service funds.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
85
NOTE 19 - RISK FINANCING ACTIVITIES (Continued)
The City is a self-insured entity with excess commercial insurance coverage purchased for general and
automobile liability, property, workers' compensation/employers’ liability, crime, cyber liability, fiduciary liability and
group health coverage. The coverage is as follows: for general and automobile liability the City’s self-insured
retention is $2.0 million with layered excess insurance coverage to $40.0 million; for property coverage the City’s
per occurrence deductible is $100,000 with a policy limit of $825.0 million; for workers’ compensation, the self-
insured retention is $750,000 for public safety employees, and $500,000 for all other employees, with the
maximum limit of indemnity per occurrence meeting the Arizona Statutory requirements and Employers Liability
maximum limit of $2 million per occurrence; and for group health the self-insurance retention is $275,000 per
individual, with an aggregate stop loss of $183,000. During the year there were no significant reductions in the
amounts of excess coverage purchased.
At fiscal year-end, the estimated, unpaid insurance claims liability was based on a case-by-case review of actual
pending claims and an estimated amount for incurred but not reported claims. A liability for a known claim was
established if information indicated that it was probable that a loss had been incurred as of June 30, 2025, and
that the amount was reasonably estimable. A liability for incurred but not reported claims was based on historical
experience. There were no settlement amounts exceeded insurance coverage in the past three fiscal years.
The following is a summary of changes in insurance claims liabilities, accounted for in the governmental and
proprietary funds, for the last two fiscal years:
June 30,
2024
Claims Incurred
Net of Change in
Estimates
Payments
June 30,
2025
General liability
$
8,133,988 $
4,684,670 $
(1,893,430) $
10,925,228
Workers' compensation
14,072,933
4,982,619
(4,479,853)
14,575,699
Health insurance
1,824,640
24,305,727
(24,163,334)
1,967,033
$
24,031,561 $
33,973,016 $
(30,536,617) $
27,467,960
June 30,
2023
Claims Incurred
Net of Change in
Estimates
Payments
June 30,
2024
Risk Management
$
6,341,136 $
2,281,973 $
(489,121) $
8,133,988
Workers' compensation
11,373,962
7,608,640
(4,909,669)
14,072,933
Health insurance
1,752,165
20,749,982
(20,677,507)
1,824,640
$
19,467,263 $
30,640,595 $
(26,076,297) $
24,031,561
NOTE 20 - CONTINGENT LIABILITIES
The City is subject to a number of lawsuits, investigations, and other claims that are incidental to the ordinary
course of its operations. Although the City Attorney does not currently possess sufficient information to
reasonably estimate the amounts of the liabilities to be recorded upon the settlement of such claims and lawsuits,
some claims could be significant to the City’s operations. While the ultimate resolution of such lawsuits,
investigations, and claims cannot be determined at this time, in the opinion of City management, based on the
advice of the City Attorney, the resolution of these matters will not have a materially adverse effect on the City’s
financial position.
The City participates in federally funded and state-funded programs administered by various government
agencies. The programs included in these financial statements may be subject to program compliance and/or
financial monitoring by the granting agency or its representatives. The amount, if any, of expenditures which may
be disallowed by the granting agencies cannot be determined at this time.
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
86
NOTE 21 - RELATED ORGANIZATION
The Industrial Development Authority (IDA) is a non-profit corporation established by the City in 1981 to promote
industry and develop trade by inducing manufacturing, industrial and commercial enterprises to locate and remain
in Tempe. The Board of Directors of the IDA is appointed by the City Council; however, the City does not have a
financial benefit/burden relationship nor is the City able to impose its will on the IDA as defined in GASB
Statement No. 14; therefore, data for the IDA is not included in the City’s basic financial statements. Separately
issued financial statements are not available for the IDA.
NOTE 22 - DEFICIT IN NET POSITION AND FUND BALANCE
The Streets CIP fund, Storm Sewer CIP fund, and the Parks fund had deficit fund balances of $10,330,547,
$10,960, and $1,487,448, respectively. The deficits will be covered by future grant revenues and Other entities'
participation revenues. Risk Management fund also reported a deficit net position of $2,482,155, the deficit will be
covered by future interdepartmental charges for services.
NOTE 23 - RESTATEMENT OF BEGINNING NET POSITION
June 30, 2024 net
position, as
previously reported
Change within the
financial reporting
entity
June 30, 2024, as
restated
Solid waste fund
$
— $
14,079,367 $
14,079,367
Nonmajor enterprise
fund
$
16,391,214 $
(14,079,367) $
2,311,847
Notes to the Financial Statements
For Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
87
88
Required Supplementary Information
89
Schedule of Contributions
All Pension Plans
Last Ten Fiscal Years
City of Tempe, Arizona
Reporting year
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Arizona State Retirement System:
Actuarially determined contribution
$ 13,261,981
$ 12,535,206
$ 11,406,242 $ 10,493,005
$ 9,740,350
$ 9,474,813
$ 8,950,287
$ 8,163,494
$ 7,887,785
$ 7,731,482
Contributions in relation to the actuarially
determined contribution
13,261,981
12,535,206
11,406,242
10,493,005
9,740,350
9,474,813
8,950,287
8,163,494
7,887,785
7,731,482
Contribution deficiency (excess)
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Covered payroll
$ 110,075,332
$ 105,637,990
$ 96,364,011 $ 87,368,901
$ 83,608,155 $ 82,749,459 $ 80,056,234 $ 74,894,440 $ 73,170,548 $ 71,257,899
Contributions as a percentage of covered payroll
12.05%
11.87%
11.84%
12.01%
11.65%
11.45%
11.18%
10.90%
10.78%
10.85%
Public Safety Personnel Retirement System-
Police:
Actuarially determined contribution
$ 9,412,211
$ 7,054,758
$ 4,437,226
$ 20,333,964
$ 19,873,495 $ 18,833,432 $ 17,208,734 $ 15,962,148 $ 12,852,861 $ 12,604,739
Additional contribution
-
-
-
218,143,845
-
-
-
-
-
-
Contributions in relation to the actuarially
determined contribution
9,412,211
7,054,758
4,437,226
7,915,146
19,873,495
18,833,432
17,208,734
15,962,148
12,852,861
12,604,739
Contribution deficiency (excess)
$
-
$
-
$
-
$ (205,725,027)
$
-
$
-
$
-
$
-
$
-
$
-
Covered payroll
$ 35,944,399
$ 34,454,610
$ 31,613,970 $ 27,412,713
$ 28,277,597 $ 28,907,800 $ 28,519,612 $ 28,672,800 $ 28,606,412 $ 28,627,615
Contributions as a percentage of covered payroll
26.19%
20.48%
14.04%
869.95%
70.28%
65.15%
60.34%
55.67%
44.93%
44.03%
Public Safety Personnel Retirement System-
Fire:
Actuarially determined contribution
$ 4,363,360
$ 3,011,464
$ 1,847,318
$ 11,478,887
$ 11,001,668 $ 10,137,454 $ 9,655,204
$ 8,639,228
$ 6,621,730
$ 6,067,633
Additional contribution
-
-
-
122,993,405
-
-
-
-
-
-
Contributions in relation to the actuarially
determined contribution
4,363,360
3,011,464
1,847,318
4,652,228
11,001,668
10,137,454
9,655,204
8,639,228
6,621,730
6,067,633
Contribution deficiency (excess)
$
-
$
-
$
-
$ (116,166,746)
$
-
$
-
$
-
$
-
$
-
$
-
Covered payroll
$ 19,690,361
$ 17,179,361
$ 17,035,385 $ 15,290,218
$ 14,489,224 $ 13,881,219 $ 13,477,393 $ 13,373,418 $ 12,337,861 $ 12,215,891
Contributions as a percentage of covered payroll
22.16%
17.53%
10.84%
879.47%
75.93%
73.03%
71.64%
64.60%
53.67%
49.67%
90
Schedule of the Proportionate Share of the Net Pension Liability
Arizona State Retirement System
Last Ten Fiscal Years
City of Tempe, Arizona
Reporting year
2025
2024
2023
2022
2021
2020
2019
2018
2017
Measurement year
2024
2023
2022
2021
2020
2019
2018
2017
2016
City's proportion of the net pension
liability
0.74%
0.74%
0.75%
0.77%
0.77%
0.76%
0.77%
0.76%
0.78%
City's proportion share of the net pension
liability
$ 125,350,992
$ 119,231,359
$ 122,131,018
$ 98,997,357
$ 132,587,729
$ 111,031,198
$ 108,146,590
$ 118,500,674
$ 126,045,105
Covered payroll
$ 105,637,990
$ 96,361,011
$ 87,368,901
$ 83,608,155
$ 82,749,459
$ 80,056,234
$ 74,894,440
$ 73,170,548
$ 71,257,899
City's proportionate share of the net
pension liability as a percentage of its
covered payroll
118.66%
123.73%
139.79%
118.41%
160.23%
138.69%
144.40%
161.95%
176.89%
Plan fiduciary net position as a
percentage of the total pension
liability
76.93%
75.47%
74.26%
78.58%
69.33%
73.24%
73.40%
69.92%
67.06%
91
Schedule of Changes in the Net Pension Liability and Related Ratios
Public Safety Personnel Retirement System- Police
Last Ten Fiscal Years
City of Tempe, Arizona
Reporting year
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Measurement year
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Total pension liability
Service cost
$
6,867,606
$
6,304,384
$
6,278,066
$
6,444,246
$
6,276,242
$
6,363,446
$
6,266,555
$
6,639,904
$
5,378,159
$
5,468,695
Interest
31,364,866
29,170,652
28,077,273
27,218,826
25,248,428
23,896,706
22,579,727
21,145,695
19,846,810
19,315,142
Changes of benefit terms
-
-
-
-
-
-
-
2,664,893
13,183,597
-
Differences between expected and actual
experience
13,247,711
17,455,976
2,888,372
(876,704)
13,853,754
2,252,812
1,492,630
(215,490)
(5,746,957)
(2,753,278)
Changes of assumptions
-
-
5,350,492
-
-
7,223,840
-
7,860,019
10,622,755
-
Benefit payments, including refunds
(24,001,807)
(22,036,266)
(22,149,263)
(19,572,007)
(17,537,352)
(15,881,006)
(15,663,112)
(13,775,904)
(15,820,570)
(14,604,348)
Net change in total pension liability
27,478,376
30,894,746
20,444,940
13,214,361
27,841,072
23,855,798
14,675,800
24,319,117
27,463,794
7,426,211
Total pension liability- beginning
440,756,435
409,861,689
389,416,749
376,202,388
348,361,316
324,505,518
309,829,718
285,510,601
258,046,807
250,620,596
Total pension liability- ending
$ 468,234,811
$ 440,756,435
$ 409,861,689
$ 389,416,749
$ 376,202,388
$ 348,361,316
$ 324,505,518
$ 309,829,718
$ 285,510,601
$ 258,046,807
Plan fiduciary net position
Contributions- employer
$
6,920,155
$
4,074,213
$ 226,589,257
$
20,333,964
$
18,813,057
$
17,153,330
$
11,403,472
$
12,486,872
$
12,552,708
$
9,804,542
Contributions- employee
2,890,364
3,031,658
2,961,098
2,844,510
2,760,167
2,187,943
2,811,219
3,579,664
3,597,316
3,641,788
Net investment income
39,793,155
26,921,997
(15,735,726)
41,258,890
1,807,767
7,119,271
8,386,647
13,507,120
653,674
3,769,779
Difference between expected and actual
experience
-
1,934,167
-
-
-
-
-
-
-
-
Benefit payments, including refunds
(24,001,807)
(22,036,266)
(22,149,263)
(19,572,007)
(17,537,352)
(15,881,006)
(15,663,112)
(13,775,904)
(15,820,570)
(14,604,348)
Administrative expense
(162,654)
(129,999)
(281,893)
(192,755)
(147,615)
(124,419)
(128,344)
(119,915)
(94,459)
(92,360)
Other
-
12,879
5,411
4,270
23,720
2,498
12,433
54,461
(173,159)
(36,082)
Net change in plan fiduciary net
iti
25,439,213
13,808,649
191,388,884
44,676,872
5,719,744
10,457,617
6,822,315
15,732,298
715,510
2,483,319
Plan fiduciary net position- beginning
395,255,472
381,446,823
190,057,939
145,381,067
139,661,323
129,203,706
122,381,391
106,649,093
105,933,583
103,450,264
Plan fiduciary net position- ending
$ 420,694,685
$ 395,255,472
$ 381,446,823
$ 190,057,939
$ 145,381,067
$ 139,661,323
$ 129,203,706
$ 122,381,391
$ 106,649,093
$ 105,933,583
Net pension liability- ending
$
47,540,126
$
45,500,963
$
28,414,866
$ 199,358,810
$ 230,821,321
$ 208,699,993
$ 195,301,812
$ 187,448,327
$ 178,861,508
$ 152,113,224
Plan fiduciary net position as a
percentage
of the total pension liability
89.85%
89.68%
93.07%
48.81%
38.64%
40.09%
39.82%
39.50%
37.35%
41.05%
Covered payroll
$
34,454,610
$
31,613,970
$
27,412,713
$
28,277,597
$
28,907,800
$
28,519,612
$
28,672,800
$
28,606,412
$
28,627,615
$
28,889,762
Net pension liability as a percentage
of covered payroll
137.98%
143.93%
103.66%
705.01%
798.47%
731.78%
681.14%
655.27%
624.79%
526.53%
92
Schedule of Changes in the Net Pension Liability and Related Ratios
Public Safety Personnel Retirement System- Fire
Last Ten Fiscal Years
City of Tempe, Arizona
Reporting year
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Measurement year
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Total pension liability
Service cost
$
4,295,872
$
4,055,208
$
3,674,351
$
3,433,110
$
3,424,059
$
3,201,998
$
3,184,469
$
3,288,107
$
2,601,714
$
2,527,186
Interest
18,320,836
17,104,173
16,199,706
15,656,247
14,737,251
14,062,552
13,505,923
12,435,795
11,454,692
11,256,214
Changes of benefit terms
-
-
-
-
-
-
-
1,132,919
9,445,952
-
Differences between expected and
actual experience
4,577,233
8,933,850
3,274,449
(3)
7,181,069
2,213,604
(549,390)
2,381,447
177,366
(1,631,037)
Changes of assumptions
-
-
3,060,017
-
-
3,771,807
-
6,731,555
5,723,255
-
Benefit payments, including refunds
(15,513,198)
(11,358,400)
(10,531,983)
(13,239,944)
(12,284,937)
(10,967,777)
(9,489,726)
(8,942,533)
(10,767,917)
(8,554,561)
Net change in total pension
liability
11,680,743
18,734,831
15,676,540
5,849,410
13,057,442
12,282,184
6,651,276
17,027,290
18,635,062
3,597,802
Total pension liability- beginning
257,916,786
239,181,955
223,505,415
217,656,005
204,598,563
192,316,379
185,665,103
168,637,813
150,002,751
146,404,949
Total pension liability- ending
$ 269,597,529
$ 257,916,786
$ 239,181,955
$ 223,505,415
$ 217,656,005
$ 204,598,563
$ 192,316,379
$ 185,665,103
$ 168,637,813
$ 150,002,751
Plan fiduciary net position
Contributions- employer
$
4,387,484
$
2,608,611
$ 128,684,062
$
11,478,887
$
10,643,938
$
9,657,636
$
7,471,162
$
7,629,875
$
6,665,926
$
4,553,293
Contributions- employee
1,441,829
1,503,324
1,450,567
1,366,781
1,369,664
1,045,992
1,274,574
1,711,846
1,620,334
1,627,959
Net investment income
23,152,421
15,688,649
(9,095,275)
24,375,794
1,093,261
4,459,035
5,290,034
8,517,929
420,827
2,537,356
Difference between expected and
actual experience
-
1,138,845
-
-
-
-
-
-
-
-
Benefit payments, including refunds
(15,513,198)
(11,358,400)
(10,531,983)
(13,239,944)
(12,284,937)
(10,967,777)
(9,489,726)
(8,942,533)
(10,767,917)
(8,554,561)
Administrative expense
(78,405)
(64,241)
(162,971)
(114,661)
(89,363)
(78,221)
(81,213)
(75,769)
(60,954)
(62,287)
Other
-
-
-
-
22,391
-
11,590
930
64,490
(36,284)
Net change in plan fiduciary net
position
13,390,131
9,516,788
110,344,400
23,866,857
754,954
4,116,665
4,476,421
8,842,278
(2,057,294)
65,476
Plan fiduciary net position-
beginning
231,070,037
221,553,249
111,208,849
87,341,992
86,587,038
82,470,373
77,993,952
69,151,674
71,208,968
71,143,492
Plan fiduciary net position-
ending
$ 244,460,168
$ 231,070,037
$ 221,553,249
$ 111,208,849
$
87,341,992
$
86,587,038
$
82,470,373
$
77,993,952
$
69,151,674
$
71,208,968
Net pension liability- ending
$
25,137,361
$
26,846,749
$
17,628,706
$ 112,296,566
$ 130,314,013
$ 118,011,525
$ 109,846,006
$ 107,671,151
$
99,486,139
$
78,793,783
Plan fiduciary net position as a
percentage
of the total pension liability
90.68%
89.59%
92.63%
49.76%
40.13%
42.32%
42.88%
42.01%
41.01%
47.47%
Covered payroll
$
17,179,361
$
17,035,385
$
15,290,218
$
14,489,224
$
13,881,219
$
13,477,393
$
13,373,418
$
12,337,861
$
12,215,891
$
10,958,329
Net pension liability as a
percentage
of covered payroll
146.32%
157.59%
115.29%
775.04%
938.78%
875.63%
821.38%
872.69%
814.40%
719.03%
93
Schedule of Contributions
Single Employer OPEB Plan
Last Nine Fiscal Years
City of Tempe, Arizona
Reporting/Measurement year
2025
2024
2023
2022
2021
2020
2019
2018
2017
Actuarially determined
$ 9,085,000
$ 9,432,000
$ 9,614,000
$ 8,139,000
$ 7,028,000
$ 7,081,000
$ 7,134,000
$ 6,984,000
$ 7,171,851
Contributions in relation to the
actuarially determined
10,269,106
9,552,753
9,437,959
9,642,039
8,870,605
7,918,331
8,461,506
6,983,551
6,759,218
Contribution deficiency
$ (1,184,106)
$ (120,753)
$
176,041
$ (1,503,039)
$ (1,842,605)
$
(837,331)
$ (1,327,506)
$
449
$
412,633
Covered-employee payroll
$ 67,155,887
$ 64,716,022
$ 62,868,923
$ 61,037,789
$ 62,477,698
$ 60,657,959
$ 35,758,296
$ 34,716,792
$ 41,444,730
Contributions as a percentage
covered-employee payroll
15.29%
14.80%
15.00%
15.80%
14.20%
13.05%
23.66%
20.12%
16.31%
Note:
This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available.
94
Schedule of Changes in the Net OPEB Liability and Related Ratios
Single Employer OPEB Plan
Last Nine Fiscal Years
City of Tempe, Arizona
Reporting/Measurement year
2025
2024
2023
2022
2021
2020
2019
2018
2017
Total OPEB liability
Service cost
$
1,085,684
$
1,185,445
$
1,173,318
$
1,170,996
$
1,028,565
$
329,347
$
319,754
$
321,229
$
300,495
Interest
6,885,308
7,365,859
7,749,644
7,035,529
6,081,440
5,630,520
5,930,814
5,689,881
5,742,386
Changes of benefit terms
-
-
-
-
-
7,651,741
-
-
-
Differences between expected and actual experience
234,243
495,369
(888,785)
2,629,006
13,492,032
267,000
(4,271,517)
4,915,943
-
Changes of assumptions
-
(6,429,084)
(4,455,325)
9,688,529
3,190,142
753,880
1,581,360
503,616
-
Benefit payments, including refunds
(10,269,106)
(9,552,753)
(9,437,959)
(9,642,039)
(8,870,605)
(7,918,332)
(8,461,506)
(6,983,551)
(6,759,218)
Net change in total OPEB liability
(2,063,871)
(6,935,164)
(5,859,107)
10,882,021
14,921,574
6,714,156
(4,901,095)
4,447,118
(716,337)
Total OPEB liability- beginning
109,976,679
116,911,843
122,770,950
111,888,929
96,967,355
90,253,199
95,154,294
90,707,176
91,423,513
Total OPEB liability- ending
$
107,912,808
$ 109,976,679
$ 116,911,843
$ 122,770,950
$ 111,888,929
$ 96,967,355
$ 90,253,199
$ 95,154,294
$ 90,707,176
Plan fiduciary net position
Contributions for benefits due
$
10,269,106
$
9,552,753
$
9,437,959
$
9,642,039
$
8,870,605
$ 7,918,331
$ 8,461,506
$ 6,983,551
$ 6,759,218
Net investment income
2,361,936
2,319,865
1,453,389
(2,728,646)
4,161,448
762,338
796,286
1,062,670
1,211,093
Benefit payments, including refunds
(10,269,106)
(9,552,753)
(9,437,959)
(9,642,039)
(8,870,605)
(7,919,331)
(8,461,506)
(6,983,551)
(6,759,218)
Net change in plan fiduciary net position
2,361,936
2,319,865
1,453,389
(2,728,646)
4,161,448
761,338
796,286
1,062,670
1,211,093
Plan fiduciary net position- beginning
20,154,930
17,835,065
16,381,676
19,110,322
14,948,874
14,187,536
13,391,250
12,328,580
11,117,487
Plan fiduciary net position- ending
$
22,516,866
$ 20,154,930
$ 17,835,065
$ 16,381,676
$ 19,110,322
$ 14,948,874
$ 14,187,536
$ 13,391,250
$ 12,328,580
Net OPEB liability- ending
$
85,395,942
$ 89,821,749
$ 99,076,778
$ 106,389,274
$ 92,778,607
$ 82,018,481
$ 76,065,663
$ 81,763,044
$ 78,378,596
Plan fiduciary net position as a percentage of the
total OPEB liability
20.87%
18.33%
15.26%
13.34%
17.08%
15.42%
15.72%
14.07%
13.59%
Covered-employee payroll
$
67,155,887
$ 64,716,022
$ 62,868,923
$ 61,037,789
$ 62,477,698
$ 60,657,959
$ 35,758,296
$ 34,716,792
$ 41,444,730
Net OPEB liability as a percentage of covered-
employee payroll
127.16%
138.80%
157.60%
174.30%
148.50%
135.21%
212.72%
235.51%
189.12%
This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available.
95
Schedule of Investment Returns
Single Employer OPEB Plan
Last Nine Fiscal Years
City of Tempe, Arizona
2025
2024
2023
2022
2021
2020
2019
2018
2017
Annual money-
weighted rate
of return, net of
investment
11.91%
13.41%
9.33%
-13.87%
28.40%
5.84%
6.43%
9.13%
11.41%
This schedule is intended to show information for ten years. Additional years' information will be displayed as it becomes available.
96
Note 1 - Actuarially determined contribution rates
Actuarially determined contribution rates. Actuarial determined contribution rates for PSPRS are calculated as
of June 30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods
and assumptions used to establish the contribution requirements are as follows:
PSPRS Actuarial Methods and Assumptions:
Actuarial Cost Method
Entry age normal
Amortization Level
Members with initial membership date before July 1, 2017:
Level percent-of-pay, closed
Members with initial membership on or after July 1, 2017:
Level dollar closed
Remaining Amortization Period as of
the 2023 Actuarial Valuation
Members with initial membership date before July 1, 2017:
18 years for unfunded actuarial accrued liability, 20 years for excess
Members with initial membership on or after July 1, 2017:
10 years
Asset Valuation Method
Members with initial membership date before July 1, 2017:
7-year smoothed fair value; 80%/120% market corridor
Members with initial membership on or after July 1, 2017:
5-year smoothed fair value; 80%120% market corridor
Actuarial Assumptions:
Investment Rate of Return
Members with initial membership date before July 1, 2017: In the
2022 actuarial valuation, the investment rate of return was decreased
from 7.3% to 7.2%. I In the 2019 actuarial valuation, the investment
rate of return was decreased from 7.40% to 7.30%. In the 2017
actuarial valuation, the investment rate of return was decreased from
7.50% to 7.40%. In the 2016 actuarial valuation, the investment rate
of return was decreased from 7.85% to 7.50%. In the 2013 actuarial
valuation, the
investment rate of return was decreased from 8.00% to 7.85%.
Members with initial membership on or after July 1, 2017: 7%
Projected Salary Increases
In the 2017 actuarial valuation, projected salary increases were
decreased from 4.0%-8.0% to 3.5%-7.5%. In the 2014 actuarial
valuation, projected salary increases were decreased from 4.5%–
8.5% to 4.0%–8.0%. In the 2013 actuarial valuation, projected salary
increases were decreased from 5.0%–9.0% to 4.5%–8.5%.
Wage Growth
In the 2022 actuarial valuation, wage growth was changed from 3.5%
to a range of 3.0 – 6.25%. In the 2017 actuarial valuation, wage
growth was decreased from 4.0% to 3.5%.
Retirement Age
Experience-based table of rates that is specific to the type of eligibility
condition. Last updated for the 2012 valuation pursuant to an
experience study of the period July 1, 2006 - June 30, 2011
Mortality
In the 2019 actuarial valuation, changed to PUbS-2010 tables. In the
2017 actuarial valuation, changed to RP-2014 tables, with 75% of
MP-2016 fully generational projection scales. RP-2000 mortality table
(adjusted by 105% for both males and females)
Notes to Required Supplementary Information
June 30, 2025
City of Tempe, Arizona
97
For ASRS -
Actuarial Assumptions for Valuations Performed - The information presented in the required supplementary
schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent
actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements.
Factors that Affect Trends - The actuarial assumptions used in the June 30, 2023, valuation were based on the
results of an actuarial experience study for the five-year period ended June 30, 2020. The purpose of the
experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS
Board adopted the experience study recommended changes which were applied to the June 30, 2020, actuarial
valuation.
Note 2 - Factors that affect trends
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent
pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of
contract because those provisions apply to individuals who were members as of the law’s effective date. As a
result, the PSPRS changed benefit terms to reflect the prior mechanism for funding permanent benefit increases
for those members and revised actuarial assumptions to explicitly value future permanent benefit increases.
PSPRS also reduced those members’ employee contribution rates. These changes are reflected in the plan’s OR
plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the
law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the
law’s effective date. These changes also increased the PSPRS-required pension contributions beginning in fiscal
year 2016 for members who were retired as of the law’s effective date. These changes increased the PSPRS-
required contributions beginning in fiscal year 2019 for members who retired or will retire after the law’s effective
date.
PSPRS allowed the City to phase in the increased contributions for members who were retired as of the law’s
effective date over three years. As a result, the City’s pension contributions were less than the actuarially
determined contributions for 2016 and 2017. The City refunded excess employee contributions to PSPRS
members. PSPRS allowed the City to reduce its actual employer contributions for the refund amounts. As a result,
the City’s pension contributions were less than the actuarially or statutorily determined contributions for 2018 and
2019.
City Sponsored Plan Schedule of Contributions - OPEB
Methods and assumptions used to determine actuarial contribution amounts are as follows:
Valuation Date:
Actuarially determined contributions are calculated as of June 30, one
year prior to the end of the fiscal year in which contributions are
reported.
Actuarial Cost Method:
Entry Age
Amortization Method:
Level percentage of payroll, closed
Amortization Period:
16 years
Asset Valuation Method:
Fair Value
Inflation:
2.60%
Salary Increases:
3.00% average, including inflation
Investment Rate of Return:
6.50%, net of plan investment expenses, including inflation
Retirement Rates:
From the 2021 ASRS and PSPRS actuarial valuations
Mortality Rates:
Mortality rates were based on the PubG.H-2010 (general employees)
and PubS.H-2010 (public safety) Employee, Retiree and Disabled
Mortality Tables, with generational projection using Scale MP-2021.
Notes to Required Supplementary Information
June 30, 2025
City of Tempe, Arizona
98
Budgetary Comparison Schedule (Non-GAAP Basis)
City Wide Operating Budget
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Final Budget
Amounts
Actual
Amounts
(Budgetary
Basis)
Variance with
Final Budget-
Positive
(Negative)
City total resources $ 784,999,687 $ 493,280,184 $ 291,719,503
Total revenues
784,999,687
493,280,184
291,719,503
City total expenditures
812,202,548
468,647,760
343,554,788
Total expenditures
812,202,548
468,647,760
343,554,788
Net change in fund balance $ (27,202,861) $
24,632,424 $
51,835,285
Note: The City’s legally adopted budget is at the Citywide level and includes all governmental and proprietary
funds. Legal control over the budget derives from State statutes that prohibit the City from exceeding its adopted
budget. Transfers between funds and departmental groups may be made upon City Manager approval and do not
require Council action or approval.
99
Budgetary Comparison Schedule (Non-GAAP Basis)
City Wide Capital Projects Budget
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Final Budget
Amounts
Actual
Amounts
(Budgetary Basis)
Variance with
Final Budget-
Positive
(Negative)
City total resources
$
652,350,506
$
262,417,526
$
389,932,980
Total revenues
652,350,506
262,417,526
(389,932,980)
City total expenditures
775,133,790
262,417,526
512,716,264
Total expenditures
775,133,790
262,417,526
512,716,264
Net change in fund balance $
(122,783,284) $
–
$
122,783,284
100
101
Combining Fund Financial Statements
102
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues used to finance certain projects or activities as
required by law or contractual agreement.
▪
Arts and Culture Fund. To account for the receipt and expenditure of the Arts and Culture Tax
monies. These monies are restricted to supporting arts and cultural activities throughout the City.
▪
Highway User Revenue Fund. To account for the receipt and expenditure of the City's share of
the highway user taxes. State law restricts the use of these monies to maintenance, construction
and reconstruction of streets, and repayment of transportation-related general obligation debt.
▪
Community Development Fund. To account for the receipt and expenditure of U.S. Department
of Housing and Urban Development Community Development Block Grant and Home Program
monies.
▪
Housing Assistance Fund. To account for the receipt and expenditure of U.S. Department of
Housing and Urban Development Lower Income Housing Assistance Program grant monies.
▪
Housing Affordability Fund. To account for the receipt and expenditure from contributions to
assist in the development of long-term housing affordability solutions.
▪
Donations and Court Awards Fund. To account for the receipt and expenditure of
miscellaneous donations and revenue received from court awarded confiscated property under
both the Federal and State Organized Crime Acts.
▪
Grants Fund. To account for the receipt and expenditure of miscellaneous grant monies.
▪
Community Facilities District Fund. To account for the receipt and expenditure of monies for
the Rio Salado Community Facilities District.
▪
Opioid Settlement Fund. To account for revenue and expenditure of One Arizona Distribution of
Opioid Settlement Funds Agreement.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long term debt
not being accounted for in the Special Revenue Funds and Enterprise Funds.
▪
Special Assessment Debt Service Fund - accounts for the accumulation of resources and payments of
special assessment debt.
103
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
CAPITAL PROJECTS FUNDS
Capital Projects Funds account for all current financial resources used for the acquisition of capital facilities except
those financed by Enterprise Funds. Disbursements from these funds are primarily for property acquisition and the
construction of permanent public improvements. The major sources of financing are derived from bond proceeds
and special revenues.
▪
Streets Fund. Used for improving, constructing and reconstructing major streets, highways,
collector and local streets within the City, and to acquire rights-of-way.
▪
Police Protection Fund. Used for purchasing, constructing and equipping police functions.
▪
Fire Protection Fund. Used for purchasing, constructing and equipping fire functions.
▪
Arts and Culture Fund. Used for purchasing, developing or improving projects that allow for the
support of the arts and cultural activities in the City.
▪
Storm Sewers Fund. Used for planning, constructing, extending and improving storm drain trunk
lines and detention basins.
▪
Transit Fund - used for the acquisition of buses, the light rail system, and other traffic flow improvements.
▪
Parks Fund. Used for acquiring, developing and equipping parks, playgrounds and recreation
facilities.
▪
Rio Salado Fund. Used for consulting and engineering studies necessary for the design of the
Rio Salado projects and for constructing a wildlife habitat.
▪
Signals Fund. Used for purchasing, constructing and equipping street light and traffic signal
upgrades and for the planning of an overall transportation plan.
▪
Community Facilities District Fund. Used for the improving and constructing in the Rio Salado
Community Facilities District.
104
Special Revenue
Arts and
Culture
Highway User
Revenue
Community
Development
Housing
Assistance
Housing
Affordability
Donations
and Court
Awards
Grants
Community
Facilities
District
Opioid
Settlement
Total Special
Revenue
Funds
Assets
Pooled cash and investments
$
13,158,532
$
8,913,646
$
1
$
530,385
$
127,796
$
3,199,455
$
3,107,890
$
2,213,024
$
2,489,449 $
33,740,178
Receivables:
Taxes
1,012,339
1,405,155
-
-
-
-
-
-
-
2,417,494
Accounts
- -
- -
- -
97,937
-
5,000
208,029
-
7,189,336
7,500,302
Special assessment
-
-
-
-
-
-
-
-
-
-
Accrued interest
69,053
-
-
-
196
8,929
-
-
-
78,178
Due from other governments
-
-
326,677
106,000
-
7,281
2,247,286
-
-
2,687,244
Inventories
-
663,502
-
-
-
-
-
-
-
663,502
Prepaid items
-
-
68,488
1,661,804
-
-
-
-
-
1,730,292
Restricted cash and investments
473,558
-
604,222
-
-
31,533
-
266
-
1,109,579
Total assets
$
14,713,482
$
10,982,303
$
999,388
$
2,396,126
$
127,992
$
3,252,198
$
5,563,205
$
2,213,290
$
9,678,785 $
49,926,769
Liabilities
Accounts payable
$
235,137
$
331,355
$
37,944
$
146,249
$
-
$
13,173
$
224,129
$
9,503
$
41 $
997,531
Deposits
78,070
254
-
-
-
4,711
130,154
-
-
213,189
Accrued expenditures
193,028
205,760
12,561
302,383
-
-
-
-
6,102
719,834
Due to other funds
-
-
640,607
-
-
-
-
-
-
640,607
Unearned revenue
-
-
-
64,089
-
-
4,057,766
-
-
4,121,855
Matured bonds payable
365,000
-
-
-
-
-
-
-
-
365,000
Matured interest payable
108,500
-
-
-
-
-
-
-
-
108,500
Total liabilities
979,735
537,369
691,112
512,721
-
17,884
4,412,049
9,503
6,143
7,166,516
Deferred Inflows of Resources
Unavailable revenue- special assessment
-
-
-
-
-
-
-
-
-
-
Unavailable revenue- other
-
-
-
-
-
-
-
-
7,189,336
7,189,336
Total deferred inflows of resources
-
-
-
-
-
-
-
-
7,189,336
7,189,336
Fund Balances
Non-spendable
-
663,502
68,488
1,661,804
-
-
-
-
-
2,393,794
Restricted
13,733,747
9,781,432
239,788
221,601
127,992
3,234,314
1,151,156
2,203,787
2,483,306
33,177,123
Committed
-
-
-
-
-
-
-
-
-
-
Assigned
-
-
-
-
-
-
-
-
-
-
Unassigned
-
-
-
-
-
-
-
-
-
-
Total fund balances
13,733,747
10,444,934
308,276
1,883,405
127,992
3,234,314
1,151,156
2,203,787
2,483,306
35,570,917
Total liabilities, deferred inflows of
resources, and fund balances
$
14,713,482
$
10,982,303
$
999,388
$
2,396,126
$
127,992
$
3,252,198
$
5,563,205
$
2,213,290
$
9,678,785 $
49,926,769
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2025
City of Tempe, Arizona
105
Debt Service Fund
Special Assessment
Debt Service
Assets
Pooled cash and investments
$
287,279
Receivables:
Taxes
-
Accounts
-
Special assessment
7,699,415
Accrued interest
248,798
Due from other governments
-
Inventories
-
Prepaid items
-
Restricted cash and investments
179,250
Total assets
$
8,414,742
Liabilities
Accounts payable
$
-
Deposits
-
Accrued expenditures
-
Due to other funds
-
Unearned revenue
34,000
Matured bonds payable
-
Matured interest payable
179,250
Total liabilities
213,250
Deferred Inflows of Resources
Unavailable revenue- special assessment
7,948,212
Unavailable revenue- other
-
Total deferred inflows of resources
7,948,212
Fund Balances
Fund balance:
Non-spendable
-
Restricted
253,280
Committed
-
Assigned
-
Unassigned
-
Total fund balances
253,280
Total liabilities, deferred inflows of
resources, and fund balances
$
8,414,742
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2025
City of Tempe, Arizona
106
Capital Projects
Streets
Police
Protection
Fire
Protection
Arts and
Culture
Storm
Sewers
Transit
Parks
Rio Salado
Signals
Community
Facilities
District
Total
Capital
Projects
Funds
Total Non-
major
Governmental
Funds
Assets
Pooled cash and investments
$ 1,781,920
$ 11,638,049
$ 16,761,544
$ 4,065,926
$
-
$ 26,652,547
$ 1,889,778
$
384,636
$ 5,484,416
$ 3,596,078
$ 72,254,894 $$ 106,282,351
Receivables:
Taxes
-
-
-
-
-
-
-
-
-
-
- 2
2,417,494
Accounts
-
-
-
-
78,308
-
9,827
-
-
-
88,135 3
7,588,437
Special assessment
-
-
-
-
-
-
-
-
-
-
-
7,699,415
Accrued interest
-
-
-
-
-
-
-
-
-
-
- 2
326,976
Due from other governments
436,949
-
-
-
-
196,160
-
-
-
-
633,109 -
3,320,353
Inventories
-
-
-
-
-
-
-
-
-
-
- 2
663,502
Prepaid items
-
-
-
-
-
-
-
-
-
-
- 6
1,730,292
Restricted cash and
i
t
t
-
-
-
-
-
-
-
-
-
-
-
1,288,829
Total assets
$ 2,218,869
$ 11,638,049
$ 16,761,544
$ 4,065,926
$
78,308
$ 26,848,707
$ 1,899,605
$
384,636
$ 5,484,416
$ 3,596,078
$ 72,976,138 5$ 131,317,649
Liabilities
Accounts payable
$ 12,549,416
$
354,136
$
1,573,994
$
87,841
$
16,270
$ 2,105,007
$ 3,377,226
$
-
$ 770,561
$
215,638
$ 21,050,089
$
22,047,620
Deposits
-
1
-
-
-
-
-
-
-
-
1
213,190
Accrued expenditures
-
-
-
-
-
-
-
-
-
-
-
719,834
Due to other funds
-
-
-
-
72,998
-
-
-
-
-
72,998
713,605
Unearned revenue
-
-
-
-
-
-
-
-
-
-
-
4,155,855
Matured bonds payable
-
-
-
-
-
-
-
-
-
-
-
365,000
Matured interest payable
-
-
-
-
-
-
-
-
-
-
-
287,750
Total liabilities
12,549,416
354,137
1,573,994
87,841
89,268
2,105,007
3,377,226
-
770,561
215,638
21,123,088
28,502,854
Deferred Inflows of
RUnavailable revenue- special
assessment
-
-
-
-
-
-
-
-
-
-
-
7,948,212
Unavailable revenue- other
-
-
-
-
-
-
9,827
-
-
-
9,827
7,199,163
Total deferred inflows of
resources
-
-
-
-
-
-
9,827
-
-
-
9,827
15,147,375
Fund Balances
Non-spendable
-
-
-
-
-
-
-
-
-
-
-
2,393,794
Restricted
5,303,954
138,153
2,738,499
4,026,866
-
6,600,677
3,042,762
-
296,474
3,380,440
25,527,825
58,958,228
Committed
-
1,163,252
4,390,875
19,540
-
-
7,819,617
384,636
1,918,522
325,040
16,021,482
16,021,482
Assigned
-
9,982,507
8,058,176
-
-
18,153,540
-
-
2,498,859
-
38,693,082
38,693,082
Unassigned
(15,634,501)
-
-
(68,321)
(10,960)
(10,517) (12,349,827)
-
-
(325,040) (28,399,166)
(28,399,166)
Total fund balances
(10,330,547)
11,283,912
15,187,550
3,978,085
(10,960) 24,743,700
(1,487,448)
384,636
4,713,855
3,380,440
51,843,223
87,667,420
Total liabilities, deferred inflows
of resources, and fund
balances
$ 2,218,869
$ 11,638,049
$ 16,761,544
$ 4,065,926
$
78,308
$ 26,848,707
$ 1,899,605
$
384,636
$ 5,484,416
$ 3,596,078
$ 72,976,138
$ 131,317,649
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2025
City of Tempe, Arizona
107
Special Revenue
Arts and
Culture
Highway
User
Revenue
Community
Development
Housing
Assistance
Housing
Affordability
Donations
and Court
Awards
Grants
Community
Facilities
District
Opioid
Settlement
Total Special
Revenue
Funds
Revenues:
Sales taxes
$ 11,151,942
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
- $ 11,151,942
Intergovernmental:
Federal grants
-
-
3,340,282
22,755,158
-
-
11,972,653
-
-
38,068,093
State grants
-
-
-
-
-
492,808
2,915,491
-
-
3,408,299
State sales tax
-
14,317,111
-
-
-
-
-
-
-
14,317,111
Other
-
-
-
-
-
642,139
5,395,578
-
812,885
6,850,602
Investment income (loss)
853,408
-
(17,318)
93,694
107,463
69,556
-
65
-
1,106,868
Charges for services
1,071,122
-
-
-
-
76,279
874
2,654,837
-
3,803,112
Fines and forfeitures
-
-
-
1,007
-
292,558
181,624
-
-
475,189
Other entities' participation
-
-
-
-
-
233,649
-
-
-
233,649
Licenses and permits
-
244,319
-
-
-
-
-
-
-
244,319
Miscellaneous
5,948
5,134
550,304
-
-
85,081
-
-
-
646,467
Total revenues
13,082,420
14,566,564
3,873,268
22,849,859
107,463
1,892,070
20,466,220
2,654,902
812,885
80,305,651
Expenditures:
Current:
General government
-
-
-
-
-
72,324
1,309,409
-
-
1,381,733
Public safety
-
-
-
-
-
536,895
6,358,218
-
-
6,895,113
Public works
-
13,423,142
-
-
-
643,147
-
-
-
14,066,289
Criminal justice
-
-
-
-
-
331,112
-
-
-
331,112
Community enrichment
10,107,867
-
3,529,414
21,955,973
-
386,824
4,019,883
3,300,234
97,865
43,398,060
Debt service:
Principal retirement
365,000
-
549,000
-
-
-
-
-
-
914,000
Interest
217,000
-
1,304
-
-
-
-
-
-
218,304
Fiscal fees
1,500
-
-
-
-
-
-
-
-
1,500
Capital outlay
177,474
1,283,087
843,026
33,351
-
132
8,451,329
-
260
10,788,659
Total expenditures
-
10,868,841 -
14,706,229 -
4,922,744 -
21,989,324 -
- -
1,970,434 -
20,138,839 -
3,300,234 -
98,125
77,994,770
Excess (deficiency) of revenues over
expenditures
2,213,579
(139,665) -
(1,049,476) -
860,535 -
107,463 -
(78,364) -
327,381 -
(645,332)
714,760
2,310,881
-
-
-
-
-
-
Other financing sources (uses):
Transfers in
250,000
1,500,000
-
-
-
-
-
-
-
1,750,000
Transfers out
(860,000)
(4,157,615)
-
-
-
-
(49,469)
-
-
(5,067,084)
Issuance of debt
-
-
-
-
-
-
-
-
-
-
Premium on issuance of debt
-
-
-
-
-
-
-
-
-
-
Proceeds from sale of capital assets
1,033
151,836
-
4,968
-
-
-
-
-
157,837
Total other financing sources (uses)
-
(608,967) -
(2,505,779) -
- -
4,968 -
- -
- -
(49,469) -
- -
-
(3,159,247)
Net change in fund balances
1,604,612
(2,645,444)
(1,049,476)
865,503
107,463
(78,364)
277,912
(645,332)
714,760
(848,366)
Fund balance at beginning of year
12,129,135
13,090,378
1,357,752
1,017,902
20,529
3,312,678
873,244
2,849,119
1,768,546
36,419,283
Fund balance at end of year
$ 13,733,747
$ 10,444,934
$
308,276
$
1,883,405
$
127,992
$
3,234,314
$
1,151,156
$
2,203,787
$
2,483,306 $ 35,570,917
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-major Governmental Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
108
Debt Service
Special Assessment
Debt Service
Revenues:
Property taxes
$
-
Investment income (loss)
-
Special assessment
1,983,125
Miscellaneous
-
Total revenues
1,983,125
Expenditures:
Debt service:
Principal retirement
1,585,000
Interest
398,125
Fiscal fees
850
Total expenditures
1,983,975
Excess (deficiency) of revenues over
expenditures
(850)
Other financing sources (uses):
Transfers in
-
Transfers out
-
Premium on issuance of debt
-
Total other financing sources
-
Net change in fund balances
(850)
Fund balance at beginning of year
254,130
Fund balance at end of year
$
253,280
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-major Governmental Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
109
Capital Projects
Streets
Police
Protection
Fire
Protection
Arts and
Culture
Storm
Sewers
Transit
Parks
Rio Salado
Signals
Community
Facilities
District
Total Capital
Projects
Funds
Total Non-major
Governmental
Funds
Revenues:
Sales taxes
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
11,151,942
Intergovernmental:
Federal grants
438,210
-
-
-
-
4,629,082
-
-
437,571
-
5,504,863
43,572,956
State grants
-
-
-
-
-
-
22,407
-
-
-
22,407
3,430,706
State sales tax
-
-
-
-
-
-
-
-
-
-
-
14,317,111
Other
-
-
-
-
-
-
-
-
51,768
-
51,768
6,902,370
Investment income (loss)
26,083
69,567
84,678
190
-
154,237
139,935
-
3,116
-
477,806
1,584,674
Charges for services
442,775
-
-
-
-
-
-
-
-
742,730
1,185,505
4,988,617
Fines and forfeitures
-
-
-
-
-
-
550
-
-
-
550
475,739
Other entities' participation
590,765
1,214,492
726,027
-
-
1,193,132
12,180,303
-
89,944
-
15,994,663
16,228,312
Special assessment
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
-
1,983,125
License and permits
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
-
244,319
Miscellaneous
-
-
-
-
78,308
19,904
-
-
-
-
98,212
744,679
Total revenues
1,497,833
1,284,059
810,705
190
78,308
5,996,355
12,343,195
-
582,399
742,730
23,335,774
105,624,550
Expenditures:
Current:
General government
-
-
-
-
-
-
-
-
-
-
-
1,381,733
Public safety
-
2,080,694
1,283,687
-
-
-
-
-
-
-
3,364,381
10,259,494
Transportation
6,784,795
-
-
-
514,788
4,287,281
-
-
2,487,269
-
14,074,133
28,140,422
Criminal justice
-
-
-
-
-
-
-
-
-
-
-
331,112
Community enrichment
-
-
-
620,608
-
-
3,815,014
-
-
309,228
4,744,850
48,142,910
Debt service:
Principal retirement
-
20,696
-
-
-
-
-
-
-
-
20,696
2,519,696
Interest
-
1,504
-
-
-
-
-
-
-
-
1,504
617,933
Fiscal fees
-
-
-
-
-
-
-
-
-
-
-
2,350
Capital outlay
24,330,286
11,007,293
6,678,490
514,647
135,958
9,448,814
28,296,026
-
738,502
934,160
82,084,176
92,872,835
Total expenditures
31,115,081
13,110,187
7,962,177
1,135,255
650,746
13,736,095
32,111,040
-
3,225,771
1,243,388
104,289,740
184,268,485
Excess (deficiency) of revenues
over expenditures
(29,617,248)
(11,826,128)
(7,151,472)
(1,135,065)
(572,438)
(7,739,740)
(19,767,845)
-
(2,643,372)
(500,658)
(80,953,966)
(78,643,935)
Other financing sources (uses):
Transfers in
3,901,299
168,123
-
860,000
-
5,648,000
-
-
300,000
-
10,877,422
12,627,422
Transfers out
-
-
-
-
-
-
-
-
-
-
-
(5,067,084)
Issuance of debt
20,030,000
-
10,970,000
-
480,000
-
7,350,000
-
1,625,000
-
40,455,000
40,455,000
Premium on issuance of debt
970,000
-
530,000
-
20,000
-
352,000
-
75,000
-
1,947,000
1,947,000
Proceeds from sale of capital
-
-
-
-
-
-
-
-
-
-
-
157,837
Total other financing sources
(uses)
24,901,299
168,123
11,500,000 -
860,000 -
500,000 -
5,648,000 -
7,702,000
- -
2,000,000 —
- -
53,279,422 -
50,120,175
Net change in fund balances
(4,715,949)
(11,658,005)
4,348,528
(275,065)
(72,438)
(2,091,740)
(12,065,845)
-
(643,372)
(500,658)
(27,674,544)
(28,523,760)
Fund balance at beginning of year
(5,614,598)
22,941,917
10,839,022
4,253,150
61,478
26,835,440
10,578,397
384,636
5,357,227
3,881,098
79,517,767
116,191,180
Fund balance at end of year
$ (10,330,547) $ 11,283,912
$ 15,187,550
$
3,978,085
$
(10,960) $ 24,743,700
$
(1,487,448) $
384,636
$
4,713,855
$
3,380,440
$ 51,843,223
$
87,667,420
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-major Governmental Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
110
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department to
other departments of the government and to other government units, on a cost reimbursement basis.
▪
Risk Management Fund. Used to account for the costs of general liability, automobile liability,
and property liability claims by the City under a self-insurance program.
▪
Worker’s Compensation Fund. Used to account for the costs incurred for worker’s
compensation claims by the City under a self-insurance program.
▪
Health Fund. Used to account for the expenses incurred for employee health related costs under
the City’s self-insurance program.
111
Combining Statement of Fund Net Position
Internal Service Funds
June 30, 2025
City of Tempe, Arizona
Risk
Management
Worker's
Compensation
Health
Total
Assets
Current assets:
Pooled cash and investments
$
9,451,524 $
8,365,914 $
21,016,779 $
38,834,217
Restricted cash and investments
-
11,883,784
11,883,784
Accounts receivable
-
60,613
361,968
422,581
Accrued interest receivable
-
37,303
-
37,303
Net OPEB asset
26,264
-
-
26,264
Depreciable assets,net
43,114
-
-
43,114
Total assets
9,520,902
20,347,614
21,378,747
51,247,263
Deferred Outflows of Resources
Deferred outflows related to
pensions
137,712
-
-
137,712
Deferred outflows related to OPEB
2,682
-
-
2,682
Total deferred outflows of
resources
140,394
-
-
140,394
Liabilities
Current liabilities:
Accounts payable
185,639
320,184
493,476
999,299
Accrued expense
29,087
-
2,805,715
2,834,802
Due to other funds
-
60,613
-
60,613
Compensated absences
61,645
-
-
61,645
Claims payable
8,737,176
7,940,249
1,967,033
18,644,458
Total current liabilities
9,013,547
8,321,046
5,266,224
22,600,817
Noncurrent liabilities:
Compensated absences
103,842
-
-
103,842
Claims payable
2,188,052
6,635,450
-
8,823,502
Net OPEB liability
94,048
-
-
94,048
Net pension liability
683,864
-
-
683,864
Total noncurrent liabilities
3,069,806
6,635,450
-
9,705,256
Total liabilities
12,083,353
14,956,496
5,266,224
32,306,073
Deferred Inflows of Resources
Deferred inflows related to pensions
46,491
-
-
46,491
Deferred inflows related to OPEB
13,607
-
-
13,607
Total deferred inflows of
resources
60,098
-
-
60,098
Net Position
Net investment in capital assets
43,114
-
-
43,114
Restricted
26,264
-
-
26,264
Unrestricted
(2,551,533)
5,391,118
16,112,523
18,952,108
Total net position
$
(2,482,155) $
5,391,118 $
16,112,523 $
19,021,486
112
Combining Statement of Revenues, Expenses and Changes in Fund Net
Position
Internal Service Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Risk
Management
Worker's
Compensation
Health
Total
Operating revenues:
Contributions
$
9,022,820 $
4,166,601 $
42,050,308 $
55,239,729
Miscellaneous
-
56,006
-
56,006
Total operating revenues
9,022,820
4,222,607
42,050,308
55,295,735
Operating expenses:
Fees and services
8,607,999
5,265,846
41,889,515
55,763,360
Depreciation
5,580
-
-
5,580
Total operating expenses
8,613,579
5,265,846
41,889,515
55,768,940
Operating income (loss)
409,241
(1,043,239)
160,793
(473,205)
Nonoperating revenues
Gain on sale of assets
7,449
7,449
Investment income
-
428,973
-
428,973
Total nonoperating
revenues
7,449
428,973
-
436,422
Transfers in
-
2,306,519
-
2,306,519
Changes in net position
416,690
1,692,253
160,793
2,269,736
Total net position - beginning
(2,898,845)
3,698,865
15,951,730
16,751,750
Total net position - ending
$
(2,482,155) $
5,391,118 $
16,112,523 $
19,021,486
113
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2025
City of Tempe, Arizona
Risk
Management
Worker's
Compensation
Health
Total
Cash flows from operating activities:
Receipts from other funds
$
9,022,820
$
4,166,601
$
41,893,948
$
55,083,369
Payments to employees
(829,343)
(180,769)
(115,396)
(1,125,508)
Payments made for claims
(4,887,378)
(4,279,644)
(41,178,003)
(50,345,025)
Miscellaneous cash receipts
-
56,006
56,006
Net cash provided (used) by in
operating activities
3,306,099
(237,806)
600,549
3,668,842
Cash flows from noncapital financing activities:
Transfer in
-
2,306,519
-
2,306,519
Net cash provided (used) by noncapital
financing activities
-
2,306,519
-
2,306,519
Cash flows from capital financing activities:
Purchase of capital assets
(48,694)
-
-
(48,694)
Proceeds from sale of assets
7,449
-
-
7,449
Net cash provided (used) by capital
financing activities
(41,245)
-
-
(41,245)
Cash flows from investing activities:
Investment income
-
417,355
-
417,355
Net cash provided (used) by investing
activities
-
417,355
-
417,355
Net increase (decrease) in cash and
cash equivalents
3,264,854
2,486,068
600,549
6,351,471
Cash and cash equivalents, beginning of year
6,186,670
17,763,630
20,416,230
44,366,530
Cash and cash equivalents, end of year
$
9,451,524
$
20,249,698
$
21,016,779
$
50,718,001
Reconciliation of cash and cash equivalents at
end of year:
Pooled cash and investments
$
9,451,524
$
8,365,914
$
21,016,779
$
38,834,217
Restricted Cash and investments
-
11,883,784
-
11,883,784
Cash and cash equivalents at end of year
$
9,451,524
$
20,249,698
$
21,016,779
$
50,718,001
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)
$
409,241
$
(1,043,239) $
160,793
$
(473,205)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating
activities:
Depreciation
5,580
-
-
5,580
Change in assets and liabilities:
(Increase) decrease in receivables
-
-
(156,360)
(156,360)
(Increase) decrease in net OPEB asset
(3,720)
-
-
(3,720)
Increase (decrease) in accounts payable
108,503
302,667
301,767
712,937
Increase (decrease) in accrued expenses
3,298
-
151,956
155,254
Increase (decrease) in claims payable
2,791,240
502,766
142,393
3,436,399
Increase (decrease) in compensated absence
19,861
-
-
19,861
(Increase) decrease in deferred outflows
related to pension and OPEB
(52,512)
-
-
(52,512)
114
Increase (decrease) in deferred inflows related
to pension and OPEB
10,740
-
-
10,740
Increase (decrease) in net pension liability
19,166
-
-
19,166
Increase (decrease) in net OPEB liability
(5,298)
-
-
(5,298)
Net cash provided (used) by operating activities
$
3,306,099
$
(237,806) $
600,549
$
3,668,842
115
This section provides a broad range of trend data covering key financial
indicators including general governmental revenues and expenditures,
property taxes, debt burden, demographics and miscellaneous data
useful in assessing the City’s financial condition.
Statistical Section
116
STATISTICAL SECTION
The Statistical Section presents detailed information as a context for understanding the information in the financial
statements, note disclosures and required supplementary information in regards to the City’s overall financial
health.
▪
Financial Trends. These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time.
▪
Revenue Capacity. These schedules contain information to help the reader assess the City’s most
significant local revenue sources, property tax and sale and use taxes.
▪
Debt Capacity. These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
▪
Economic and Demographic Information. These schedules offer economic and demographic indicators
to help the reader understand the environment within which the City’s financial activities take place.
▪
Operating Information. These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the services the City provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the
relevant year.
117
Net Position by Component (Exhibit S-1)
Last Ten Fiscal Years
Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Governmental activities
Net investment in capital assets
$ 463,290,704
$ 441,875,868
$ 435,421,987
$ 538,278,359
$ 529,205,694
$ 523,422,276
$ 491,949,237
$ 483,438,668
$ 519,530,983
$ 564,120,959
Restricted
202,785,386
160,088,789
141,175,028
164,690,176
135,603,391
99,053,439
79,370,511
102,808,694
117,866,229
102,095,778
Unrestricted
123,361,861
196,377,950
206,108,533
111,429,390
89,964,094
85,960,972
70,642,228
13,318,115
(22,136,687)
(26,820,571)
Total governmental activities net
position
$ 789,437,951
$ 798,342,607
$ 782,705,548
$ 814,397,925
$ 754,773,179
$ 708,436,687
$ 641,961,976
$ 599,565,477
$ 615,260,525
$ 639,396,166
Business-type activities
Net investment in capital assets
$
83,745,808
$ 102,002,361
$
97,816,016
$ 137,380,192
$ 151,450,264
$ 140,978,804
$ 124,836,951
$ 111,354,858
$ 104,387,674
$
69,467,178
Restricted
42,320,738
36,091,495
25,963,094
-
-
-
-
-
-
-
Unrestricted
184,678,037
139,062,597
140,236,122
162,925,142
145,707,685
148,328,973
153,206,243
153,208,008
151,904,179
170,405,834
Total business-type activities net
position
$ 310,744,583
$ 277,156,453
$ 264,015,232
$ 300,305,334
$ 297,157,949
$ 289,307,777
$ 278,043,194
$ 264,562,866
$ 256,291,853
$ 239,873,012
Primary government
Net investment in capital assets
$ 547,036,512
$ 543,878,229
$ 533,238,003
$ 675,658,551
$ 680,655,958
$ 664,401,080
$ 616,786,188
$ 594,793,526
$ 623,918,657
$ 633,588,137
Restricted
245,106,124
196,180,284
167,138,122
164,690,176
135,603,391
99,053,439
79,370,511
102,808,694
117,866,229
102,095,778
Unrestricted
308,039,898
335,440,547
346,344,655
274,354,532
235,671,779
234,289,945
223,848,471
166,526,123
129,767,492
143,585,263
Total primary government net position
$ 1,100,182,534 $ 1,075,499,060 $ 1,046,720,780 $ 1,114,703,259 $ 1,051,931,128 $ 997,744,464
$ 920,005,170
$ 864,128,343
$ 871,552,378
$ 879,269,178
118
Changes in Net Position (Exhibit S-2a)
Last Ten Fiscal Years
Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Expenses
Governmental activities:
Police (j)
$
-
$
-
$
-
$ 106,879,997
$ 109,735,808
$ 107,096,572
$ 101,620,981
$ 107,357,688
$ 111,570,351
$ 93,057,663
Fire medical rescue (j)
-
-
-
48,723,812
46,151,382
49,941,616
44,646,087
40,900,261
48,345,996
34,319,479
Public safety (j)
185,040,405
181,268,814
177,106,183
-
-
-
-
-
-
-
Community services (a) (d)
-
-
-
39,506,898
35,564,456
36,442,527
28,463,648
29,739,525
27,956,647
27,402,656
Public works (g)
145,107,262
-
-
-
-
-
110,725,592
102,940,790
103,728,249
112,589,913
Transportation (k)
-
119,214,368
98,054,788
-
-
-
-
-
-
-
Engineering and transportation (g) (k)
-
-
-
79,306,002
88,643,038
102,020,829
-
-
-
-
Municipal utilities (g) (k)
-
-
-
301,324
746,213
506,510
-
-
-
-
Community development (a)
-
-
-
15,739,179
14,321,605
18,005,337
17,550,896
17,270,124
16,521,932
18,372,515
Human services (d) (a)
-
-
-
31,970,182
30,908,394
26,614,653
21,669,347
22,505,753
17,777,825
17,430,250
Community enrichment (a)
137,200,088
126,782,592
113,071,086
-
-
-
-
-
-
-
Criminal justice (l)
5,883,706
5,769,865
5,417,328
-
-
-
-
-
-
-
Municipal court (l)
-
-
-
5,048,832
5,077,211
5,257,225
4,985,853
5,007,487
4,909,370
4,354,299
General government (b)
50,627,498
52,332,996
57,489,311
Mayor and council (b)
-
-
-
612,841
434,176
461,629
491,026
405,716
473,324
337,046
City manager (d)(e)(c) (b)
-
-
-
9,346,396
10,707,904
7,455,774
7,150,485
7,045,025
6,815,022
7,371,101
City attorney (b)
-
-
-
3,760,903
3,748,495
3,724,210
3,137,658
3,283,818
3,160,056
2,961,497
Internal audit office (b)
-
-
-
550,591
619,106
516,840
434,770
476,584
376,249
425,674
Municipal budget office (d) (b)
-
-
-
425,769
106,535
269,344
172,182
288,182
261,313
259,133
Economic development office (h) (a)
-
-
-
1,512,840
787,714
771,575
-
-
-
-
Sustainability office (h) (b)
-
-
-
617,053
274,559
174,109
-
-
-
-
Office of strategic management and diversity (e) (b)
-
-
-
844,972
899,173
1,186,219
1,079,461
981,169
1,055,075
-
City clerk and elections (b)
-
-
-
997,382
957,343
1,036,845
829,499
979,356
815,016
868,596
Financial services (i) (b)
-
-
-
14,399,674
-
-
-
-
-
-
Human resources (i) (b)
-
-
-
4,425,590
-
-
-
-
-
-
Information technology (i) (b)
-
-
-
883,020
-
-
-
-
-
-
Internal services (b)(d)(i) (b)
-
-
-
-
18,570,150
19,779,369
15,650,001
16,749,283
18,821,669
8,252,013
119
Unallocated depreciation
-
-
-
1,451,338
1,502,243
1,716,431
1,716,431
1,716,725
1,777,887
1,785,487
Interest on long-term debt
20,749,765
19,891,073
18,057,610
17,344,833
9,529,375
9,921,992
12,503,655
11,817,213
9,847,278
12,924,841
Total governmental activities expenses
544,608,724
505,259,708
469,196,306
384,649,428
379,284,880
392,899,606
372,827,572
369,464,699
374,213,259
342,712,163
Business-type activities:
Water and wastewater
114,111,095
92,323,601
96,368,865
89,403,602
86,542,908
77,716,351
77,906,953
76,903,243
70,364,126
75,515,527
Solid waste
19,985,620
20,428,137
21,167,692
19,872,919
17,319,217
16,909,091
15,791,378
17,494,354
15,918,430
14,881,636
Emergency medical transportation (f)
5,915,519
7,005,235
6,907,615
5,562,895
4,150,475
4,295,939
2,966,379
3,026,686
-
-
Golf course
-
172,560
3,554,898
3,500,205
3,336,616
3,038,086
2,937,558
2,802,184
2,520,474
2,734,351
Total business-type activities expenses
140,012,234
119,929,533
127,999,070
118,339,621
111,349,216
101,959,467
99,602,268
100,226,467
88,803,030
93,131,514
Total primary government expenses
$ 684,620,958
$ 625,189,241
$ 597,195,376
$ 502,989,049
$ 490,634,096
$ 494,859,073
$ 472,429,840
$ 469,691,166
$ 463,016,289
$ 435,843,677
Note: To assist with comparability, certain prior year expenses have been recategorized as listed below.
(a)
In Fiscal Year 2023 the Community development, Community services, Human services and the economic development departments were reported under the Community enrichment function
for financial reporting purposes only.
(b)
In Fiscal Year 2023 Mayor and Council. City Manager, City Attorney, Internal Audit, Municipal Budget, Sustainability, Office of Strategic Management and Diversity, City Clerk and Elections,
Financial Services, Human Resources, and Information Technology were reported under the General Government function for financial reporting purposes only.
(c)
Tickmark not utilized
(d)
Tickmark not utilized
(e)
In Fiscal Year 2017, the Office of Strategic Management and Diversity was created. The Diversity office which was under the City Manager's office was moved into the new office.
(f)
In Fiscal Year 2018, the Emergency Medical Transportation Fund was established.
(g)
In Fiscal Year 2020, the Public Works department separated into two new departments: Municipal Utilities; Engineering and Transportation. In FY2025, Municipal Utilities; Engineering and Transportation merged into Public Works.
(h)
In Fiscal Year 2020, the Sustainability Office and the Economic Development Office were created. Both offices were previously part of the City Manager's office.
(i)
In Fiscal Year 2022, the Internal Services department separated into three new departments: Financial services, Human resources, and Information technology.
(j)
In Fiscal Year 2023 the Police and Fire medical rescue departments were reported under the Public safety function for financial reporting purposes only.
(k)
In Fiscal Year 2023 the Engineering and transportation and municipal utilities departments were reported under the Transportation function for financial reporting purposes only.
(l)
In Fiscal Year 2023 the Municipal court department was reported under the Criminal Justice function for financial reporting purposes only.
120
Changes in Net Position (Exhibit S-2b)
Last Ten Fiscal Years
Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Program Revenues
Governmental activities:
Charges for services:
Police (j)
$
-
$
-
$
-
$
822,007
$
738,594
$
790,792
$
1,298,812
$
977,914
$
1,021,670
$
1,444,986
Fire medical rescue (j)
-
-
-
349,850
297,548
330,441
200,378
858,577
1,869,840
1,536,642
Public Safety (j)
2,022,890
2,512,811
2,010,414
-
-
-
-
-
-
-
Community services (a) (c) (m)
-
-
-
3,336,679
1,909,685
3,249,544
7,714,161
8,323,732
8,283,698
7,812,755
Transportation (k)
-
16,724,639
20,177,263
-
-
-
-
-
-
-
Engineering and transportation (e) (k)
-
-
-
15,076,973
10,492,178
16,315,473
-
-
-
-
Municipal utilities (e) (k)
-
-
-
-
289
5,897
-
-
-
-
Public works (e)
19,298,315
-
-
-
-
-
17,797,231
16,011,590
16,585,374
17,740,856
Community development (m)
-
-
-
22,270,861
16,682,427
21,113,072
14,283,336
15,684,471
13,250,819
12,665,828
Human services (c) (m)
-
-
-
2,736,199
1,948,647
3,285,787
10,031
9,501
7,820
13,926
Community enrichment (m)
30,986,365
27,708,900
21,068,644
-
-
-
-
-
-
-
Criminal justice (l)
1,312,040
1,539,433
7,935,474
-
-
-
-
-
-
-
Municipal court (l)
-
-
-
1,248,063
2,299,815
2,289,026
4,457,922
3,559,861
5,852,849
6,372,719
General government (n)
4,900,088
8,651,310
6,311,329
-
-
-
-
-
-
-
City manager (f)(h) (n)
-
-
-
-
-
-
-
-
7,597
-
City attorney (n)
-
-
-
-
30,000
27,013
23,487
19,361
16,940
14,174
Internal audit office (n)
-
-
-
-
-
-
-
-
-
-
Municipal budget office (n)
-
-
-
-
-
-
-
-
-
-
Economic development office (f) (m)
-
-
-
2,769,468
196,462
-
-
-
-
-
Sustainability office (f) (n)
-
-
-
6,045
15,544
-
-
-
-
-
Office of strategic management and diversity (h) (n)
-
-
-
1,000
-
-
-
-
-
-
City clerk and elections (n)
-
-
-
-
-
-
2,056
3,140
-
-
Financial services (g) (n)
-
-
-
3,597,830
-
-
-
-
-
-
Human resources (g) (n)
-
-
-
-
-
-
-
-
-
-
Information technology (g) (n)
-
-
-
-
-
-
-
-
-
-
Internal services (b)(g) (n)
-
-
-
-
3,423,684
1,804,246
2,827,988
3,000,921
1,797,928
2,186,635
Operating grants and contributions
46,515,358
39,108,463
36,149,703
26,374,825
36,398,251
32,178,593
34,467,594
30,237,598
27,582,362
26,831,238
Capital grants and contributions
39,575,665
11,887,956
22,911,000
18,931,868
36,754,274
76,680,266
39,638,190
4,094,624
6,355,742
8,091,341
Total governmental activities program revenues
144,610,721
108,133,512
116,563,827
97,521,668
111,187,398
158,070,150
122,721,186
82,781,290
82,632,639
84,711,100
121
Business-type activities:
Charges for services:
Water and wastewater
110,549,161
99,078,192
90,130,138
91,475,655
90,696,447
85,057,003
85,339,513
87,807,953
86,273,324
81,265,973
Solid waste
22,487,015
21,488,728
20,843,436
20,627,824
19,824,131
18,394,311
17,306,244
16,706,706
16,274,287
15,319,833
Emergency medical transportation (d)
6,372,774
7,583,401
8,226,766
5,990,395
4,135,310
4,375,755
3,442,151
2,280,247
-
-
Golf course
-
-
4,603,641
4,006,042
3,907,736
2,780,200
2,626,308
2,387,362
2,322,777
2,575,908
Total business-type activities program revenues
139,408,950
128,150,321
123,803,981
122,099,916
118,563,624
110,607,269
108,714,216
109,182,268
104,870,388
99,161,714
Total primary government program revenues
$ 284,019,671
$ 236,283,833
$ 240,367,808
$ 219,621,584
$ 229,751,022
$ 268,677,419
$ 231,435,402
$ 191,963,558
$ 187,503,027
$ 183,872,814
Net (expense)/revenue
Governmental activities
$ (399,998,003) $ (397,126,196) $ (352,632,479) $ (287,127,760) $ (266,547,655) $ (234,829,456) $ (250,106,386) $ (287,933,728) $ (291,580,620) $ (258,001,063)
Business-type activities
(603,284)
8,220,788
(4,195,089)
4,487,095
7,214,408
8,647,802
9,111,948
10,206,120
16,067,358
6,030,200
Total primary government net expense
$ (400,601,287) $ (388,905,408) $ (356,827,568) $ (282,640,665) $ (259,333,247) $ (226,181,654) $ (240,994,438) $ (277,727,608) $ (275,513,262) $ (251,970,863)
Note: To assist with comparability, certain prior year expenses have been recategorized as listed below.
(a)
Tickmark not utilized
(b)
Tickmark not utilized
(c)
Tickmark not utilized
(d)
In Fiscal Year 2018, the Emergency Medical Transportation Fund was established.
(e)
In Fiscal Year 2020, the Public Works department separated into two new departments: Municipal Utilities; Engineering and Transportation. In FY2025, Municipal Utilities; Engineering and Transportation merged into Public Works.
(f)
In Fiscal Year 2020, the Sustainability Office and the Economic Development Office were created. Both offices were previously part of the City Manager's office.
(g)
In Fiscal Year 2022, the Internal Services department separated into three new departments: Financial services, Human resources, and Information technology.
(h)
In Fiscal Year 2017, the Office of Strategic Management and Diversity was created. The Diversity office which was under the City Manager's office was moved into the new office.
(i)
not used in program revenues.
(j)
In Fiscal Year 2023 the Police and Fire medical rescue departments were reported under the Public safety function for financial reporting purposes only.
(k)
In Fiscal Year 2023 the Engineering and transportation and municipal utilities departments were reported under the Transportation function for financial reporting purposes only.
(l)
In Fiscal Year 2023 the Municipal court department was reported under the Criminal Justice function for financial reporting purposes only.
(m)
In Fiscal Year 2023 the Community development, Community services, Human services and the economic development departments were reported under the Community enrichment function
for financial reporting purposes only.
(n)
In Fiscal Year 2023 Mayor and Council. City Manager, City Attorney, Internal Audit, Municipal Budget, Sustainability, Office of Strategic Management and Diversity, City Clerk and Elections,
Financial Services, Human Resources, and Information Technology were reported under the General Government function for financial reporting purposes only.
122
Changes in Net Position (Exhibit S-2c)
Last Ten Fiscal Years
Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
General revenues and other changes in net position
Governmental activities:
General revenues:
Sales taxes
$ 213,223,843
$ 220,706,908
$ 222,221,888
$ 222,951,580
$ 190,760,900
$ 180,941,410
$ 177,596,413
$ 168,650,143
$ 160,218,570
$ 152,492,065
Intergovernmental revenue, unrestricted
93,675,840
100,839,012
84,994,033
58,954,757
60,503,495
52,940,012
48,024,343
48,403,871
44,671,765
41,472,528
Property taxes
65,921,804
63,045,369
63,596,741
59,488,492
52,210,522
51,525,619
48,706,817
47,495,555
45,308,519
43,316,151
Franchise taxes
3,280,977
3,255,826
2,742,874
3,055,126
2,846,569
2,772,127
3,036,531
3,290,220
3,182,193
3,363,615
Unrestricted investment earnings
8,891,379
9,260,955
4,594,728
(3,820,904)
829,560
7,950,512
7,936,949
1,489,603
662,115
1,683,445
Miscellaneous
6,254,246
12,670,187
7,524,676
3,646,464
4,770,561
3,241,181
5,924,186
5,506,328
5,435,113
7,419,129
Gain on sale of capital assets
-
-
-
767,622
1,692,302
638,133
674,569
1,667,264
7,538,846
5,298,681
Transfers
(154,742)
2,984,998
(193,514)
646,079
820,065
1,295,173
603,077
(1,454,082)
427,858
509,690
Special Item
-
-
(65,027,861)
-
-
-
-
-
-
-
Total governmental activities
391,093,347
412,763,255
320,453,565
345,689,216
314,433,974
301,304,167
292,502,885
275,048,902
267,444,979
255,555,304
Business-type activities:
Unrestricted investment earnings
6,706,859
7,175,090
1,866,714
(1,777,102)
200,724
3,504,059
3,614,531
697,388
351,831
841,726
Miscellaneous
4,171,419
730,341
697,005
788,909
888,141
326,138
1,124,986
651,500
299,116
152,428
Gain (loss) on sale of capital assets
-
-
-
294,562
266,964
81,757
231,940
33,015
128,394
572,356
Capital contributions
-
-
-
-
100,000
-
-
-
-
Transfers
154,742
(2,984,998)
193,514
(646,079)
(820,065)
(1,295,173)
(603,077)
(25,122)
(427,858)
(509,690)
Special Item
-
-
(34,852,246)
-
-
-
-
-
-
-
Total business-type activities
11,033,020
4,920,433
(32,095,013)
(1,339,710)
635,764
2,616,781
4,368,380
1,356,781
351,483
1,056,820
Total primary government
$ 402,126,367
$ 417,683,688
$ 288,358,552
$ 344,349,506
$ 315,069,738
$ 303,920,948
$ 296,871,265
$ 276,405,683
$ 267,796,462
$ 256,612,124
Changes in net position
Governmental activities
$
(8,904,656) $ 15,637,059
$ (32,178,914) $ 58,561,456
$ 47,886,319
$ 66,474,711
$ 42,396,499
$
3,315,145
$ (24,135,641) $
(2,445,759)
Business-type activities
10,429,736
13,141,221
(36,290,102)
3,147,385
7,850,172
11,264,583
13,480,328
10,312,582
16,418,841
7,087,020
Total primary government
$
1,525,080
$ 28,778,280
$ (68,469,016) $ 61,708,841
$ 55,736,491
$ 77,739,294
$ 55,876,827
$ 13,627,727
$
(7,716,800) $
4,641,261
123
Fund Balances, Governmental Funds (Exhibit S-3)
Last Ten Fiscal Years
Modified Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
General fund
Fund balances:
Non-spendable
$
1,686,050
$
1,390,248
$
1,211,974
$
976,468
$
391,694
$
396,885
$
491,024
$
711,092
$
638,685
$
782,276
Restricted
-
-
-
3,497,723
199,456
154,819
106,684
154,667
100,000
100,000
Committed
2,236,486
5,279,326
4,586,678
-
-
-
480,675
-
475,531
147,036
Assigned
38,625,337
38,625,337
39,500,000
24,869,373
20,579,412
17,408,412
18,713,280
15,336,906
14,762,667
10,291,768
Unassigned
116,399,149
120,298,222
126,393,523
142,653,835
138,855,354
116,285,953
97,995,211
93,995,709
80,099,820
78,629,198
Total general fund
$ 158,947,022
$ 165,593,133
$ 171,692,175
$ 171,997,399
$ 160,025,916
$ 134,246,069
$ 117,786,874
$ 110,198,374
$ 96,076,703
$ 89,950,278
All other governmental funds
Fund balances:
Non-spendable
$
2,406,497
$
2,500,764
$
1,850,205
$
1,622,640
$
1,670,998
$
1,458,623
$
1,527,574
$
1,553,045
$
1,623,799
$
1,594,761
Restricted
121,460,352
168,003,447
172,889,384
129,981,114
96,536,269
68,712,850
65,121,669
80,434,422
88,581,119
82,863,821
Committed
63,188,053
78,579,897
30,466,106
50,341,486
28,925,620
39,133,751
46,353,146
39,232,880
26,744,884
20,404,290
Assigned
62,454,139
45,662,796
36,469,492
15,405,309
11,880,755
23,310,919
12,308,616
11,261,680
15,774,827
15,186,266
Unassigned
(53,285,680)
(53,714,003)
(4,070,016)
(836,064)
(1,089,017)
(1,777,702)
(1,442,236)
(296,755)
-
(2,856,351)
Total all other governmental funds
$ 196,223,361
$ 241,032,901
$ 237,605,171
$ 196,514,485
$ 137,924,625
$ 130,838,441
$ 123,868,769
$ 132,185,272
$ 132,724,629
$ 117,192,787
124
Changes in Fund Balance, Governmental Funds (Exhibit S-4a)
Last Ten Fiscal Years
Modified Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Revenues:
Taxes
$ 282,518,578
$ 286,721,746
$ 285,491,863
$ 271,111,952
$ 232,293,514
$ 222,478,903
$ 216,680,985
$ 207,580,582
$ 197,341,071
$ 188,672,865
Intergovernmental
163,233,589
152,107,819
138,933,245
111,295,511
109,958,549
101,776,973
99,111,729
90,577,368
89,383,867
85,856,572
Property rental
4,312,131
4,099,430
3,172,790
3,349,508
-
-
-
-
-
-
Interest earnings
718,523
723,770
521,950
545,252
-
-
-
-
-
-
Investment earnings
21,101,921
21,603,619
3,892,348
(4,366,156)
829,560
7,950,512
7,936,949
1,489,603
662,115
1,683,445
Charges for services
37,655,744
35,095,210
33,010,063
24,488,695
17,845,292
27,538,387
29,552,529
30,445,583
30,134,108
31,752,038
Fines and forfeitures
4,992,673
5,607,005
4,605,768
5,373,996
4,909,416
6,154,697
7,191,904
7,670,630
8,982,209
9,357,450
Other entities' participation
17,122,019
3,960,238
2,631,499
3,917,813
4,316,313
4,755,503
3,778,658
5,972,968
1,916,336
1,751,971
Special assessments
1,983,125
2,057,895
1,911,731
2,126,515
2,541,561
2,442,290
1,990,732
2,027,722
2,173,798
2,439,086
Licenses and permits
10,498,582
9,053,660
7,633,873
7,487,684
6,888,387
7,400,258
6,951,095
8,330,276
5,446,638
6,308,241
Miscellaneous
4,666,978
7,010,116
9,544,794
13,473,798
11,999,740
9,453,724
9,005,664
8,502,999
8,761,291
9,867,156
Total revenues
548,803,863
528,040,508
491,349,924
438,804,568
391,582,332
389,951,247
382,200,245
362,597,731
344,801,433
337,688,824
Expenditures:
Police (h)
-
-
-
310,896,560
96,040,799
96,427,720
93,078,088
87,341,647
82,429,673
81,154,550
Fire medical rescue (h)
-
-
-
161,837,533
41,303,945
40,622,999
38,797,039
33,159,702
31,383,875
30,724,706
Public safety (h)
166,082,729
157,548,136
144,936,068
-
-
-
-
-
-
-
Community services (c) (k)
-
-
-
33,952,582
30,307,131
30,336,733
25,228,594
25,507,377
23,770,512
22,516,873
Transportation (i)
-
89,541,016
80,198,409
-
-
-
-
-
-
-
Public works (e)
116,020,312
-
-
-
-
-
79,092,222
72,517,143
70,604,468
73,771,025
Engineering and transportation (e) (i)
-
-
-
39,980,688
41,665,283
54,873,909
-
-
-
-
Municipal utilities (e) (i)
-
-
-
-
78,310
377,524
-
-
-
-
Community development (k)
-
-
-
15,540,735
15,701,904
16,438,644
16,624,962
16,408,645
15,336,696
16,321,778
Human services (c) (k)
-
-
-
30,942,701
30,565,705
26,679,827
26,244,724
20,428,462
17,589,585
17,388,871
Community enrichment (k)
130,376,969
119,298,854
106,326,931
-
-
-
-
-
-
-
Criminal justice (j)
5,913,141
5,520,400
5,222,882
-
-
-
-
-
-
-
Municipal court (j)
-
-
-
4,993,995
4,825,954
5,105,605
5,133,357
5,158,342
4,886,110
4,262,778
General government (l)
36,182,439
42,306,565
39,897,072
-
-
-
-
-
-
-
Mayor and council (l)
-
-
-
600,044
486,599
457,553
495,829
403,658
417,734
342,645
City manager (b)(d)(f) (l)
-
-
-
9,344,242
10,038,861
7,427,628
7,397,648
7,182,164
6,800,149
7,292,703
City attorney (l)
-
-
-
4,118,555
3,407,246
3,571,789
3,515,785
3,261,843
3,098,124
2,920,857
Internal audit office (l)
-
-
-
573,579
542,627
506,977
459,746
490,396
408,867
403,108
Municipal budget office (c) (l)
-
-
-
297,671
174,398
255,729
261,798
294,404
262,696
236,768
Economic development office (f) (k)
-
-
-
1,463,481
748,363
738,759
-
-
-
-
125
Sustainability office (f) (l)
-
-
-
531,845
309,803
160,406
-
-
-
-
Office of strategic management and diversity (l)
-
-
-
1,236,388
1,258,230
1,244,678
1,088,773
987,828
932,200
-
City clerk and elections (l)
-
-
-
981,782
869,904
1,006,212
910,335
995,339
752,876
850,235
Financial services (g) (l)
-
-
-
14,533,212
-
-
-
-
-
-
Human resources (g) (l)
-
-
-
4,365,764
-
-
-
-
-
-
Information technology (g) (l)
-
-
-
11,639
-
-
-
-
-
-
Internal services (c)(a)(g)
-
-
-
-
19,427,458
18,004,773
15,716,010
16,263,826
16,334,235
7,433,821
Debt service:
Principal
62,373,629
55,239,874
40,826,740
31,022,000
27,019,000
47,107,000
38,768,000
31,730,000
39,547,000
29,686,000
Interest
20,014,636
18,881,620
17,228,445
15,755,521
10,454,626
11,350,230
13,526,198
11,326,484
11,688,331
13,361,380
Fiscal fees
524,250
1,486,271
491,045
2,815,114
300,802
472,785
344,231
331,593
569,367
432,387
Capital outlay
143,313,380
103,128,115
73,242,561
73,518,401
56,128,602
60,975,054
53,518,221
32,418,674
30,298,582
45,373,210
Total expenditures
$ 680,801,485
$ 592,950,854
$ 508,370,153
$ 759,314,032
$ 391,655,550
$ 424,142,534
$ 420,201,560
$ 366,207,527
$ 357,111,080
$ 354,473,695
Deficiency of revenues over expenditures before other
financing sources (uses)
$ (131,997,622) $ (64,910,343) $ (17,020,229) $ (320,509,464) $
(73,218) $ (34,191,287) $ (38,001,315) $
(3,609,796) $ (12,309,647) $ (16,784,871)
Note: To assist with comparability, certain prior year expenses have been recategorized as listed below.
(a)
Tickmark not used
(b)
Tickmark not used
(c)
Tickmark not used
(d)
In Fiscal Year 2017, the Office of Strategic Management and Diversity was created. The Diversity office which was under the City Manager's office was moved into the new office.
(e)
In Fiscal Year 2020, the Public Works department separated into two new departments: Municipal Utilites; Engineering and Transportation. In FY2025, Municipal Utilities; Engineering and Transportation merged into Public Works.
(f)
In Fiscal Year 2020, the Sustainability Office and the Economic Development Office were created. Both offices were previously part of the City Manager's office.
(g)
In Fiscal Year 2022, the Internal Services department separated into three new departments: Financial services, Human resources, and Information technology.
(h)
In Fiscal Year 2023 the Police and Fire medical rescue departments were reported under the Public safety function for financial reporting purposes only.
(i)
In Fiscal Year 2023 the Engineering and transportation and municipal utilities departments were reported under the Transportation function for financial reporting purposes only.
(j)
In Fiscal Year 2023 the Municipal court department was reported under the Criminal Justice function for financial reporting purposes only.
(k)
In Fiscal Year 2023 the Community development, Community services, Human services and the economic development departments were reported under the Community enrichment function
for financial reporting purposes only.
(l)
In Fiscal Year 2023 Mayor and council. City manager, city Attorney, Internal Audit, Municipal budget, Sustainability, Office of strategic management and diversity, City Clerk and Elections,
Financial services, human resources, Information technology, and Internal services were reported under the General government function for financial reporting purposes only.
126
Changes in Fund Balance, Governmental Funds (Exhibit S-4b)
Last Ten Fiscal Years
Modified Accrual Basis of Accounting
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Other financing sources (uses):
Transfers in
$ 19,644,736
$ 56,420,842
$ 42,065,224
$ 42,875,301
$ 42,696,445
$ 30,942,109
$ 38,729,874
$ 42,297,460
$ 27,870,785
$ 30,410,514
Transfers out
(22,105,997)
(56,229,927)
(50,439,388)
(42,229,222)
(41,876,380)
(29,646,936)
(38,126,797)
(43,372,403)
(27,442,927)
(29,900,824)
Issuance of debt
76,125,000
55,395,000
52,382,158
384,186,600
23,862,732
37,325,000
27,130,000
25,025,000
12,290,000
13,630,000
Premium on issuance of debt
4,310,017
5,023,129
5,395,948
4,897,404
6,515,503
-
5,655,061
4,083,395
1,754,028
5,413,632
Lease proceeds
-
-
1,294,308
-
-
74,604
-
87,798
-
-
Sbita lease proceeds
1,351,090
1,316,631
3,927,816
-
-
-
-
-
-
-
Proceeds from sale of capital assets
1,217,125
802,356
3,179,625
789,301
1,740,949
665,377
1,220,174
1,685,856
4,483,481
5,350,923
Issuance of refunding bonds
-
6,910,000
38,195,000
18,260,000
2,665,000
-
34,095,000
34,422,798
Payment to refunding bond escrow agent
-
(7,399,000)
-
(37,643,577)
-
-
-
(12,614,996)
(19,082,453)
(35,888,204)
Total other financing sources
80,541,971
62,239,031
57,805,691
391,070,807
32,939,249
57,620,154
37,273,312
17,192,110
33,967,914
23,438,839
Net change in fund balances
$ (51,455,651)
$ (2,671,312)
$ 40,785,462
$ 70,561,343
$ 32,866,031
$ 23,428,867
$
(728,003)
$ 13,582,314
$ 21,658,267
$ 6,653,968
Debt service as a percentage of noncapital expenditures
15.3%
15.1%
13.3%
6.8%
11.2%
16.1%
14.3%
12.9%
15.7%
13.9%
127
Taxable Sales and Percentage of Taxable Sales by Category (Exhibit S-5)
Last Ten Fiscal Years
Cash Basis
City of Tempe, Arizona
Taxable Sales
Fiscal
Year
Retail
Rental
Utilities and
Telecommunications
Restaurant
Contracting
Hotel and
Motel
Amusements
All
Other
Total
City Direct
Sales Tax
Rate
2016
$ 4,057,021,000
$ 1,342,058,000
$
548,882,000
$ 656,237,000
$ 653,818,000
$ 166,167,000
$
89,261,000
$
75,989,000
$ 7,589,433,000
1.80 %
2017
4,323,045,000
1,391,183,000
539,476,000
679,897,000
654,944,000
184,412,000
96,055,000
75,694,000
7,944,706,000
1.80
2018
4,527,666,000
1,526,503,000
552,373,000
705,920,000
662,203,000
209,961,000
89,259,000
59,140,000
8,333,025,000
1.80
2019
4,649,114,000
1,755,549,000
554,618,000
736,240,000
675,955,000
228,785,000
94,108,000
74,142,000
8,768,511,000
1.80
2020
5,075,059,000
1,734,138,000
427,008,000
678,918,000
853,617,000
156,197,000
68,804,000
52,347,000
9,046,088,000
1.80
2021
5,547,684,000
1,835,514,000
420,360,000
676,710,000
640,451,000
111,374,000
46,901,000
49,253,000
9,328,247,000
1.80
2022
6,504,492,000
2,047,036,000
433,999,000
907,502,000
668,052,000
227,406,000
88,694,000
63,861,000
10,941,042,000
1.80
2023
6,274,459,000
2,366,430,000
460,900,000
983,173,000
685,242,000
281,700,000
118,813,000
70,734,000
11,241,451,000
1.80
2024
6,112,329,000
2,471,466,000
483,729,000
1,016,272,000
744,178,000
275,234,000
151,742,000
62,454,000
11,317,404,000
1.80
2025
6,245,390,000
2,134,692,000
522,966,000
1,033,410,000
760,882,000
278,225,000
124,551,000
50,586,000
11,150,702,000
1.80
Percentage of Taxable Sales
Fiscal
Year
Retail
Rental
Utilities and
Telecommunications
Restaurant
Contracting
Hotel and
Motel
Amusements
All
Other
Total
2016
53.46 %
17.68 %
7.23 %
8.65 %
8.61 %
2.19 %
1.18 %
1.00 %
100 %
2017
54.42
17.51
6.79
8.56
8.24
2.32
1.21
0.95
100
2018
54.33
18.32
6.63
8.47
7.95
2.52
1.07
0.71
100
2019
53.02
20.02
6.33
8.40
7.71
2.61
1.07
0.84
100
2020
56.10
19.17
4.72
7.51
9.44
1.73
0.76
0.57
100
2021
59.47
19.68
4.51
7.25
6.87
1.19
0.50
0.53
100
2022
59.45
18.71
3.97
8.29
6.11
2.08
0.81
0.58
100
2023
55.82
21.03
4.10
8.75
6.10
2.51
1.06
0.63
100
2024
54.01
21.84
4.27
8.98
6.58
2.43
1.34
0.55
100
2025
56.01
19.14
4.69
9.27
6.82
2.50
1.12
0.45
100
Source: City of Tempe, Arizona Tax and License Division
128
Direct and Overlapping Sales Tax Rates (Exhibit S-6)
Last Ten Fiscal Years
City of Tempe, Arizona
City Sales Tax Rates
Fiscal
Year
General Fund
Sales Tax Rate
Transit Special
Revenue Fund
Sales Tax Rate
Arts+Culture/
Performing Arts
Special
Revenue Fund
Sales Tax Rate
Total City
Direct Sales
Tax Rate
Maricopa
County Sales
Tax Rate
State Sales
Tax Rate
Total Sales
Tax Rate
2016
1.20 %
0.50 %
0.10 %
1.80 %
0.70 %
5.60 %
8.10 %
2017
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2018
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2019
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2020
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2021
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2022
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2023
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2024
1.20
0.50
0.10
1.80
0.70
5.60
8.10
2025
1.20
0.50
0.10
1.80
0.70
5.60
8.10
Source: City of Tempe, Arizona Tax and License Division
129
General Property Tax Information (Exhibit S-7)
City of Tempe, Arizona
Tax Levy Limitations
Beginning in 1980-81, the total tax levy is comprised of two elements: a primary levy for operating costs and a
secondary levy for general obligation bond debt service requirements. The primary levy was limited to a 7%
increase for 1980-81 and a 2% annual increase thereafter. In addition, the primary levy on residential property
only is limited to an amount not more than 1% of fair value. The secondary levy is unlimited.
Assessments and Collections
Since 1950-51, Maricopa County, at no charge to the cities, has assessed and collected all municipal property
taxes. Remittances are made to the respective cities periodically as collections accrue.
Taxes Due
First installment is due October 1st; second installment is due March 1st.
Taxes Payable
City property taxes are payable at the office of the County Treasurer. Taxes for the first half of the year can be paid
on the first of September through the first of November. Second half taxes can be paid on the first of March
through the first of May.
Taxes Delinquent
The first half becomes delinquent on the first day of November at 5 p.m. The second half becomes delinquent on
the first day of May at 5 p.m. Interest at the rate of 16% per annum attaches on the first and second installments
following the delinquent dates.
Tax Sale
The sale of delinquent tax bills is begun on a date not earlier than February 1 nor later than March 1 following the
May 1 date upon which the second half taxes become delinquent. The sale is made at public auction in the office
of the County Treasurer. Tax bills are sold to the highest bidder who offers to pay the accumulated amount of tax
and to charge thereon the lowest rate of interest. The maximum amount of interest allowed by law is 16% per
annum. The purchaser is given a Certificate of Purchase for each parcel.
Tax Deed
Five years subsequent to the tax sale, the holder of a Certificate of Purchase which has not been redeemed by
the delinquent property owner may demand a County Treasurer's Deed. However, at the end of three full years, a
holder of a Certificate of Purchase may institute quiet title action and the court will instruct the County Treasurer to
issue a County Treasurer's Deed if the suit is successful.
Redemption
Redemption may be made by the delinquent property owner or any interested party by payment in full of all
accumulated charges at any time before issuance of the tax deed. Payment may be made to the County
Treasurer.
130
Primary and Secondary Assessed Value and
Estimated Actual Value of Taxable Property (Exhibit S-8)
Last Ten Fiscal Years
Rate per $100 of Assessed Value
City of Tempe, Arizona
Fiscal
Year
Commercial,
Manufacturing,
Telecommunications
Property
Vacant,
Agricultural &
Governmental
Property
Owner
Occupied
Residential
Property
Rental
Residential
Property
Railroad &
Airlines
Property
Non-commercial
Historic
Property
Less:
Tax-Exempt
Property
Net Taxable
Assessed
Value
Total
Direct
Tax
Rate
Estimated
Total
Actual
Value (a)
Assessed
Value as a
Percentage of
Actual Value
2016
Primary
$
1,040,045,065
$
604,094,072
$
458,995,411
$
303,832,779
$
2,453,154
$
5,495,047
$
820,971,174
$ 1,593,944,354
0.93
$ 12,152,815,646
13.12 %
Secondary
1,119,535,292
681,597,591
569,311,744
395,569,487
2,501,825
6,440,828
901,610,148
1,873,346,619
1.59
14,573,138,077
12.85
2017
Primary
1,066,869,523
604,354,126
480,671,687
340,922,305
2,213,159
5,507,068
831,185,771
1,669,352,097
0.94
12,936,980,827
12.90
Secondary
1,066,869,523
604,354,126
480,671,687
340,922,305
2,213,159
5,507,068
831,185,771
1,669,352,097
1.59
16,688,127,422
10.00
2018
Primary
1,121,945,426
655,920,933
502,268,412
378,171,085
2,238,277
5,400,480
891,707,903
1,774,236,710
0.92
13,773,672,226
12.88
Secondary
1,121,945,426
655,920,933
502,268,412
378,171,085
2,238,277
5,400,480
891,707,903
1,774,236,710
1.57
17,858,194,237
9.94
2019
Primary
1,130,477,624
701,270,049
528,812,064
404,759,028
2,063,797
3,229,286
907,642,388
1,862,969,460
0.92
14,500,815,905
12.85
Secondary
1,130,477,624
701,270,049
528,812,064
404,759,028
2,063,797
3,229,286
907,642,388
1,862,969,460
1.50
19,292,541,580
9.66
2020
Primary
1,226,011,101
724,469,285
549,262,440
452,477,990
2,106,703
5,460,842
949,264,953
2,010,523,408
0.90
15,652,812,327
12.84
Secondary
1,226,011,101
724,469,285
549,262,440
452,477,990
2,106,703
5,460,842
949,264,953
2,010,523,408
1.50
21,407,207,731
9.39
2021
Primary
1,260,003,905
789,897,255
580,182,705
494,195,105
2,082,237
5,536,167
1,003,325,543
2,128,571,831
0.89
16,641,307,485
12.79
Secondary
1,260,003,905
789,897,255
580,182,705
494,195,105
2,082,237
5,536,167
1,003,325,543
2,128,571,831
1.50
23,585,521,332
9.02
2022 (b)
Primary
1,374,583,030
848,054,327
608,638,569
525,409,409
2,228,245
5,725,998
1,081,805,791
2,282,833,787
0.89
17,774,367,390
12.84
Secondary
1,374,583,030
848,054,327
608,638,569
525,409,409
2,228,245
5,725,998
1,081,805,791
2,282,833,787
1.48
26,023,287,469
8.77
2023
Primary
1,392,066,474
892,654,128
637,487,403
575,020,890
2,799,655
5,877,028
1,120,498,024
2,385,407,554
0.88
18,860,241,682
12.65
Secondary
1,392,066,474
892,654,128
637,487,403
575,020,890
2,799,655
5,877,028
1,120,498,024
2,385,407,554
1.50
27,897,790,751
8.55
2024
Primary
1,434,029,632
930,177,005
666,181,366
620,087,504
3,941,671
5,865,630
1,175,912,652
2,484,370,156
0.88
19,894,637,071
12.49
Secondary
1,434,029,632
930,177,005
666,181,366
620,087,504
3,941,671
5,865,630
1,175,912,652
2,484,370,156
1.53
34,616,715,701
7.18
2025
Primary
1,404,284,082
975,861,225
693,097,435
681,339,141
4,691,483
6,303,848
1,188,284,951
2,577,292,263
0.87
21,059,425,050
12.24
Secondary
1,404,284,082
975,861,225
693,097,435
681,339,141
4,691,483
6,303,848
1,188,284,951
2,577,292,263
1.55
42,065,565,681
6.13
Source:
Maricopa County Assessor - State Abstract
Maricopa County Tax Levy - Schedule B & C: Cities and Towns Tax Levies, Primary & Secondary
Note:
The total tax levy was comprised of two elements: a primary levy for operating costs and a secondary levy for general obligation bond debt service requirements. The primary levy is limited to a 2% increase plus new construction. The secondary levy is
unlimited. In Fiscal Year 2016, with the passage of Proposition 117, the limited property tax value is required to be used in determining and levying primary and secondary taxes on all property.
Prior to Fiscal Year 2016, the primary levy was based on the limted property tax value and the secondary levy was based on the secondary property tax value.
(a)
Estimated Total Actual Value is the calculated value of the actual full cash value net of estimated value of property exempt from taxation.
(b)
FY2022 data was obtained from the August abstract because February was unavailable. All other years are based on the February abstract.
131
Property Tax Rates - All Direct and Overlapping Governments (Exhibit S-9)
Last Ten Fiscal Years
Rate per $100 of Assessed Value
City of Tempe, Arizona
Schools
County-Wide Jurisdiction
Fiscal
Year
City of
Tempe (a)
Tempe
Union
Tempe
Elemen-
tary (b)
East Valley
Institute of
Technology
Maricopa
County
Community
College
County Ed
Equalization
Rate
Flood
District
Central
Arizona
Water
Fire
District
Assistance
County
Library
District
Special
Health Care
District
Total
2016
Primary
$
0.93
$
2.22
$
3.22
$
-
$
1.36
$
1.26
$
0.51
$
-
$
-
$
-
$
-
$
0.19
$
9.69
Secondary
1.59
0.66
2.25
0.05
-
0.23
-
0.16
0.14
0.01
0.06
0.11
5.26
Total
2.52
2.88
5.47
0.05
1.36
1.49
0.51
0.16
0.14
0.01
0.06
0.30
14.95
2017
Primary
0.94
2.24
3.09
-
1.40
1.24
0.50
-
-
-
-
0.20
9.61
Secondary
1.59
0.66
2.20
0.05
-
0.23
-
0.18
0.14
0.01
0.06
0.11
5.23
Total
2.53
2.90
5.29
0.05
1.40
1.47
0.50
0.18
0.14
0.01
0.06
0.31
14.84
2018
Primary
0.92
2.06
2.96
-
1.40
1.20
0.49
-
-
-
-
0.20
9.23
Secondary
1.57
0.60
2.09
0.05
-
0.21
-
0.18
0.14
0.01
0.06
0.09
5.00
Total
2.49
2.66
5.05
0.05
1.40
1.41
0.49
0.18
0.14
0.01
0.06
0.29
14.23
2019
Primary
0.92
1.99
2.05
-
1.40
1.17
0.47
-
-
-
-
0.19
8.19
Secondary
1.50
0.66
2.85
0.05
-
0.20
-
0.18
0.14
0.01
0.06
0.10
5.75
Total
2.42
2.65
4.90
0.05
1.40
1.37
0.47
0.18
0.14
0.01
0.06
0.29
13.94
2020
Primary
0.90
1.93
2.70
-
1.40
1.16
0.46
-
-
-
-
0.19
8.74
Secondary
1.50
0.64
2.01
0.05
-
0.17
-
0.18
0.14
0.01
0.06
0.15
4.91
Total
2.40
2.57
4.71
0.05
1.40
1.33
0.46
0.18
0.14
0.01
0.06
0.34
13.65
2021
Primary
0.89
1.87
2.62
-
1.40
1.13
0.44
-
-
-
-
0.18
8.53
Secondary
1.50
0.63
1.85
0.05
-
0.16
-
0.18
0.14
0.01
0.06
0.12
4.70
Total
2.39
2.50
4.47
0.05
1.40
1.29
0.44
0.18
0.14
0.01
0.06
0.30
13.23
2022
Primary
0.89
1.84
2.61
-
1.35
1.11
0.43
-
-
-
-
0.18
8.41
Secondary
1.48
0.60
1.84
0.05
-
0.11
-
0.18
0.14
0.01
0.06
0.12
4.59
Total
2.37
2.44
4.45
0.05
1.35
1.22
0.43
0.18
0.14
0.01
0.06
0.30
13.00
2023
Primary
0.88
1.75
2.51
-
1.25
1.09
-
-
-
-
-
0.18
7.66
Secondary
1.50
0.60
1.97
0.05
-
0.10
-
0.16
0.14
0.01
0.05
0.07
4.65
Total
2.38
2.35
4.48
0.05
1.25
1.19
-
0.16
0.14
0.01
0.05
0.25
12.31
132
2024
Primary
0.88
1.70
2.42
-
1.20
1.08
-
-
-
-
-
0.17
7.45
Secondary
1.53
0.72
1.93
0.05
-
0.06
-
0.15
0.14
0.01
0.05
0.10
4.74
Total
2.41
2.42
4.35
0.05
1.20
1.14
-
0.15
0.14
0.01
0.05
0.27
12.19
2025
Primary
0.87
1.70
1.63
-
1.16
1.05
-
-
-
-
-
0.17
6.58
Secondary
1.55
0.67
2.42
0.05
-
0.06
-
0.15
0.14
0.01
0.05
0.09
5.19
Total
2.42
2.37
4.05
0.05
1.16
1.11
-
0.15
0.14
0.01
0.05
0.26
11.77
Source:
Maricopa County Assessor's Office
Maricopa County Tax Levy Publication
(a)
Primary levies are limited to a 2% increase annually plus levies attributable to assessed valuation added as a result of growth and annexation. Secondary tax levies do not have a limitation.
(b)
Tempe property owners residing within the Kyrene Elementary School District No. 28, Scottsdale Unified School District No. 48 or Mesa Unified School District No. 4 have combined rates of $11.40, $11.18 or $15.04, respectively. Also, see the Direct
and Overlapping Governmental Activities Debt- Property Tax Supported Schedule (Exhibit S-17).
133
Property Tax Levies - All Direct and Overlapping Governments (Exhibit S-10)
Last Ten Fiscal Years
City of Tempe, Arizona
Schools
County-Wide Jurisdiction
Fiscal
Year
City of
Tempe
Tempe
Union
Tempe
Elemen-
tary (a)
East Valley
Institute of
Technology
Maricopa
County
Community
College
Flood
District
County Ed
Equalization
Rate
Central
Arizona
Water
Fire
District
Assistance
County
Library
District
Special
Health Care
District
Total
2016
Primary
$ 14,877,877
$ 67,301,586
$ 40,281,153
$
-
$ 471,193,529
$ 437,227,709
$
-
$ 174,988,030
$
-
$
-
$
-
$ 67,273,204
$ 1,273,143,088
Secondary
25,281,551
19,895,071
28,161,726
7,614,014
-
80,036,848
49,512,136
-
48,660,147
4,013,398
19,250,761
37,341,000
319,766,652
Total
40,159,428
87,196,657
68,442,879
7,614,014
471,193,529
517,264,557
49,512,136
174,988,030
48,660,147
4,013,398
19,250,761
104,614,204
1,592,909,740
2017
Primary
15,690,240
70,920,943
40,273,959
-
506,222,142
447,212,880
-
181,352,524
-
-
-
70,777,141
1,332,449,829
Secondary
26,577,755
20,881,916
28,658,765
8,034,256
-
82,211,035
58,463,580
-
50,677,352
4,030,569
20,091,335
39,747,000
339,373,563
Total
42,267,995
91,802,859
68,932,724
8,034,256
506,222,142
529,423,915
58,463,580
181,352,524
50,677,352
4,030,569
20,091,335
110,524,141
1,671,823,392
2018
Primary
16,404,593
68,659,932
40,876,811
-
535,870,745
457,339,611
-
186,400,980
-
-
-
73,820,558
1,379,373,230
Secondary
27,834,226
19,909,974
28,971,774
8,489,725
-
81,872,034
62,198,813
-
53,530,745
3,893,879
21,268,052
35,191,536
343,160,758
Total
44,238,819
88,569,906
69,848,585
8,489,725
535,870,745
539,211,645
62,198,813
186,400,980
53,530,745
3,893,879
21,268,052
109,012,094
1,722,533,988
2019
Primary
17,118,826
69,668,285
29,725,536
-
566,289,063
473,275,205
-
191,959,243
-
-
-
76,921,021
1,424,957,179
Secondary
28,030,238
23,042,843
41,355,451
9,005,606
-
82,713,190
66,310,571
-
56,684,864
4,319,354
22,475,317
42,153,890
376,091,324
Total
45,149,064
92,711,128
71,080,987
9,005,606
566,289,063
555,988,395
66,310,571
191,959,243
56,684,864
4,319,354
22,475,317
119,074,911
1,801,048,503
2020
Primary
18,114,816
72,156,009
42,303,940
-
605,109,318
499,542,385
-
196,326,940
-
-
-
80,459,388
1,514,012,796
Secondary
30,177,956
23,880,002
31,468,300
9,617,828
-
74,279,486
70,887,943
-
60,196,609
4,082,918
24,016,045
62,843,632
391,450,719
Total
48,292,772
96,036,011
73,772,240
9,617,828
605,109,318
573,821,871
70,887,943
196,326,940
60,196,609
4,082,918
24,016,045
143,303,020
1,905,463,515
2021
Primary
18,980,475
73,991,571
43,485,838
-
640,280,922
514,159,761
-
202,808,377
-
-
-
84,240,979
1,577,947,923
Secondary
32,017,977
25,111,276
30,666,905
11,299,160
-
74,558,711
75,415,664
-
64,150,864
4,096,425
25,411,963
55,365,219
398,094,164
Total
50,998,452
99,102,847
74,152,743
11,299,160
640,280,922
588,718,472
75,415,664
202,808,377
64,150,864
4,096,425
25,411,963
139,606,198
1,976,042,087
2022
Primary
20,086,813
77,439,694
46,760,224
-
655,778,021
541,422,496
-
208,194,759
-
-
-
88,031,823
1,637,713,830
Secondary
33,620,224
25,352,189
32,864,175
11,999,126
-
55,787,637
80,429,826
-
68,372,664
4,186,635
27,090,614
56,990,223
396,693,313
Total
53,707,037
102,791,883
79,624,399
11,999,126
655,778,021
597,210,133
80,429,826
208,194,759
68,372,664
4,186,635
27,090,614
145,022,046
2,034,407,143
2023
Primary
20,948,649
77,052,844
47,230,052
-
643,295,202
560,363,573
-
-
-
-
-
92,081,287
1,440,971,607
Secondary
35,773,957
26,264,408
37,005,233
12,684,601
-
53,051,463
75,704,791
-
72,706,057
4,252,620
26,045,384
37,132,768
380,621,282
Total
56,722,606
103,317,252
84,235,285
12,684,601
643,295,202
613,415,036
75,704,791
-
72,706,057
4,252,620
26,045,384
129,214,055
1,821,592,889
2024
Primary
21,802,825
78,024,561
47,274,546
-
659,075,503
590,508,449
-
-
-
-
-
96,224,945
1,492,910,829
Secondary
37,983,522
33,196,482
37,795,010
13,397,769
-
32,680,233
77,344,624
-
77,038,310
4,421,757
26,704,487
53,203,259
393,765,453
Total
59,786,347
111,221,043
85,069,556
13,397,769
659,075,503
623,188,682
77,344,624
-
77,038,310
4,421,757
26,704,487
149,428,204
1,886,676,282
2025
Primary
22,543,575
80,470,934
33,025,765
-
676,087,804
611,634,606
-
-
-
-
-
100,651,292
1,524,413,976
Secondary
40,061,431
31,584,019
49,021,276
14,162,704
-
32,734,732
79,198,583
-
80,568,428
4,654,662
27,414,483
52,728,777
412,129,095
Total
$ 62,605,006
$ 112,054,953
$ 82,047,041
$ 14,162,704
$ 676,087,804
$ 644,369,338
$ 79,198,583
$
-
$ 80,568,428
$ 4,654,662
$ 27,414,483
$ 153,380,069
$ 1,936,543,071
Source:
Maricopa County Assessor's Office
Maricopa County Tax Levy Publication
(a)
For levies for Tempe property owners residing within Kyrene, Scottsdale or Mesa School Districts, see the Direct and Overlapping Governmental Activities Debt- Property Tax Supported Schedule (Exhibit S-17).
(b)
2022 Tax Levy Rate for County Ed Equalization (State Equalization Tax) was 0.00.
134
Property Tax Levies and Collections (Exhibit S-11)
Last Ten Fiscal Years
City of Tempe, Arizona
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Fiscal
Year
Total Tax Levy
for Fiscal Year (a)
Adjustments
Adjusted Tax Levy
for Fiscal Year
Amount
% of
Original Levy
Collections in
Subsequent Years
Amount
% of
Adjusted Levy
2016
$
40,471,289
$
(362,147) $
40,109,142
$
39,886,362
98.6 %
$
221,625
$
40,107,987
100.0 %
2017
42,580,125
(411,041)
42,169,084
41,757,608
98.1
404,759
42,162,367
100.0
2018
44,161,889
(242,341)
43,919,548
43,501,882
98.5
414,683
43,916,565
100.0
2019
45,529,984
(266,244)
45,263,740
44,892,921
98.6
366,136
45,259,057
100.0
2020
48,265,218
(204,779)
48,060,439
47,378,445
98.2
675,444
48,053,889
100.0
2021
50,936,177
(315,300)
50,620,877
49,942,161
98.0
653,044
50,595,205
99.9
2022
54,040,262
24,951
54,065,213
53,371,592
98.8
548,859
53,920,451
99.9
2023
57,217,825
(530,451)
56,687,374
55,973,207
97.8
390,197
56,363,404
98.7
2024
60,312,401
(792,768)
59,519,633
58,550,432
97.1
—
58,550,432
98.4
2025
62,699,948
(299,271)
62,400,677
61,719,839
98.4
-
61,719,839
98.9
Source:
Maricopa County Treasurer
(a)
The amounts listed in this column do not tie directly to the amount listed for City of Tempe in Exhibit S-10 for total of Primary and Secondary Property Tax Levy. Due to a timing difference, the amount listed on the
Maricopa County Secured Tax Levy Report , from the Maricopa County Treasurer's office, is at the time the levy is placed on the Tax Levy report (in May/June when the property tax rate is set). The amount listed
on the Secured Tax Levy Report , from the Maricopa County Treasuer's office, is at the time the levy is placed on the actual tax rolls in August.
135
Principal Tax Payers (Exhibit S-12)
Property Tax
Current Year and Nine Years Prior
City of Tempe, Arizona
Fiscal Year
2025
Fiscal Year
2016
Taxpayer:
Net Assessed
Limited
Property
Values
Rank
Percentage of
Net Assessed
Limited
Property Values
Taxable
Secondary
Assessed
Value
Rank
Percentage of
Total City
Secondary Taxable
Assessed Value
Arizona Public Service
$
150,785,262
1
5.71 %
$
25,479,567
2
1.60 %
Quarter On Scottsdale Llc
33,494,707
2
1.27
-
-
Scottsdale Fashion Square Llc
31,610,174
3
1.20
-
-
Salt River Project (T&D)
25,080,173
4
0.95
-
-
18700 Hayden Road Llc
23,172,771
5
0.88
-
-
Camden Usa Inc
19,843,787
6
0.75
-
-
Fmt Scottsdale Owner Llc (Imps)
17,270,142
7
0.65
-
-
Weingarten Nostat Inc
17,030,596
8
0.65
-
-
Scottsdale Fashion Square Llc
16,514,282
9
0.63
-
-
Scottsdale Promenade Llc
14,619,689
10
0.55
-
-
Arizona Mills Mall LLC
-
-
26,368,205
1
1.65
Verizon Wireless
-
-
25,180,513
3
1.58
Qwest Corporation
-
-
11,240,146
4
0.71
KBSII Fountainhead LLC
-
-
10,920,803
5
0.69
Honeywell Internation Inc
-
-
8,817,697
6
0.55
Tempe Campus
-
-
7,909,650
7
0.50
JDM II Tempe Oc LLC
-
-
7,798,764
8
0.49
JP Morgan Chase Bank
-
-
6,853,312
9
0.43
Pky W Rrio Salado LLC
-
-
6,659,109
10
0.42
Total
$
349,421,583
13.24 %
$
137,227,766
8.62 %
Source 2025; Maricopa County Treasurer Office.
Source 2016: RBC Capital Markets
Note:
Beginning in Fiscal Year 2016, a voter-approved constitutional amendment and related enabling legislation changed the property valuation for assessing
property taxes. Property taxes are now levied based on a revised "Limited Property Value" which is generally (a) the Full Cash Value of a property or (b) an
amount of percent greater than the Limited Property Value as determined for the prior year.
136
Excise Tax Collections (Exhibit S-13)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Privilege and use tax (a)
$
131,594,465
$
135,520,956
$
137,347,979
$
140,443,769
$
118,865,174
$
113,398,508
$
111,283,725
$
105,643,666
$
99,865,430
$
95,804,083
State shared sales tax
40,382,995
49,275,176
34,924,472
25,683,520
23,228,957
19,899,062
17,958,644
18,266,956
16,145,681
15,357,220
State shared income tax
29,121,493
28,128,266
27,216,492
24,105,004
27,983,270
24,875,451
22,408,078
22,604,114
21,511,044
19,470,946
Franchise tax
3,559,571
3,430,257
2,863,995
3,055,126
2,846,569
2,772,127
3,036,531
3,290,220
3,182,193
3,363,615
Vehicle license tax
9,854,241
9,412,813
9,132,854
9,166,233
9,291,268
8,165,499
7,657,621
7,532,801
7,015,040
6,644,362
Permits and fees (b)
10,498,582
9,053,660
17,733,066
8,005,559
12,328,064
15,896,029
13,739,509
14,815,290
10,244,664
11,543,817
Fines and forfeitures (c)
4,992,673
5,607,005
4,144,727
4,934,285
4,404,217
5,612,670
6,434,188
6,839,148
8,094,581
8,464,633
Total
$
230,004,020
$
240,428,133
$
233,363,585
$
215,393,496
$
198,947,519
$
190,619,346
$
182,518,296
$
178,992,195
$
166,058,633
$
160,648,676
Source:
City of Tempe, Arizona Annual Comprehensive Financial Report
City of Tempe, Arizona "Revenue and Expenditure by Account by Fund" report.
(a)
Amounts exclude the 0.5% Excise Tax approved by voters on September 10, 1996 as a dedicated "transit tax", the 0.1% Performing Arts Center Tax approved by voters in September 2000 (expiring December 2020),
the 0.1% Arts and Culture Tax approved by voters in November 2018 (effective January 2021) and the 1.0% increase in the transient lodging tax on hotels approved by the voters in September 2002, which are
restricted to fund programs of the Tempe Convention and Visitor's Bureau.
(b)
Amounts include all licenses/permits and Community Development and Engineering and Transportation fees/charges for services.
(c)
Amounts include fines and forfeitures for General Fund only.
137
Ratios of Net General Bonded Debt Outstanding (Exhibit S-14)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
Year
Governmental
General
Obligation
Debt
Enterprise
General
Obligation
Debt and WIFA
General
Obligation
Premium
Less:
Debt Service
Reserves
Total
Secondary/Limited
Assessed
Valuation (a)
Percentage of
Governmental
Debt to
Assessed Value (b)
Percentage of
Total to
Assessed Value
of Property
Net Direct
Debt Per
Capita
2016
$
180,750,000
$
196,122,761
$
26,115,095
$
20,693,070
$
382,294,786
$
1,593,944,354
10.0 %
24.0 %
$
2,213
2017
178,555,000
198,182,660
27,517,521
21,456,909
382,798,272
1,669,352,097
10.0
22.3
2,053
2018
180,435,000
201,216,644
32,224,134
13,114,979
400,760,799
1,774,236,710
9.4
22.9
2,098
2019
183,990,000
206,499,363
38,801,412
3,463,501
425,827,274
1,862,969,450
9.7
22.9
2,214
2020
191,860,000
185,795,463
33,458,848
4,158,853
406,955,458
2,010,523,406
9.3
20.2
2,078
2021
196,865,000
163,289,583
36,837,470
6,898,943
390,093,110
2,128,571,831
8.9
18.7
2,198
2022
212,220,000
195,886,352
44,910,501
8,447,041
444,569,812
2,282,833,787
8.9
19.5
2,686
2023
243,407,158
183,268,233
45,530,393
9,524,199
462,681,585
2,385,407,554
9.8
19.4
2,488
2024
271,690,000
208,366,315
49,855,654
6,896,565
523,015,404
2,484,369,283
10.7
21.1
2,755
2025
323,370,000
237,858,725
52,907,268
1,919,139
612,216,854
2,577,292,263
12.5
23.8
3,220
Source
Secondary assessed valuation from Maricopa County Assessor's Office for fiscal years prior to Fiscal Year 2016. In Fiscal Year 2016, the assessed valuation used is the Limited Property Value from Maricopa County
Assessor's office Net Assessed Value Detail schedule.
(a)
In Fiscal Year 2016, with the passage of Proposition 117, the Limited Assessed Value is required to be used for the calculation of the tax levy.
(b)
General obligation debt for business-type activities is not paid by property taxes and therefore the "Percentage of Governmental Debt to Assessed Value " is disclosed.
138
Ratios of Outstanding Debt by Type (Exhibit S-15)
Last Ten Fiscal Years
City of Tempe, Arizona
Governmental Activities
Fiscal
Year
General
Obligation
Bonds
Special
Assessment
Bonds
Excise Tax
Revenue
Bonds
Premium on
Debt Payable
HUD
Section 108
Loan
Capital
Improvement
Notes
SBITA
Leases
Financed
Purchases
Certificates of
Participation
Total
Government-
Type Debt
2016
$ 180,750,000
$
19,980,000
$ 123,389,000
$
22,291,058
$
4,181,000
$
–
$
–
$
–
$
61,399
$
-
$
350,652,457
2017
178,555,000
18,730,000
116,009,000
20,515,300
3,794,000
-
–
–
34,743
-
337,638,043
2018
180,435,000
17,415,000
97,994,000
21,847,912
3,389,000
-
–
–
65,610
-
321,146,522
2019
183,990,000
16,035,000
87,269,000
25,046,197
2,966,000
-
–
–
40,972
-
315,347,169
2020
191,860,000
27,750,000
76,604,000
21,731,892
2,524,000
-
–
–
81,216
-
320,551,108
2021
196,865,000
25,755,000
69,582,000
26,374,477
2,062,000
-
–
–
979,231
-
321,617,708
2022
212,220,000
23,865,000
69,442,000
24,718,409
1,580,000
-
–
–
8,710
343,000,000
674,834,119
2023
243,407,158
21,895,000
60,787,000
28,097,020
1,076,000
-
2,637,704
1,085,876
4,514
336,000,000
694,990,272
2024
271,690,000
19,835,000
55,048,000
30,392,466
549,000
-
2,613,840
853,724
–
317,570,000
698,552,030
2025
323,370,000
17,690,000
41,935,000
31,974,375
–
-
2,460,588
616,437
–
297,190,000
715,236,400
Business-Type Activities
Fiscal
Year
General
Obligation
Bonds
Excise Tax
Revenue
Bonds
Revenue
Obligations
Premium on
Debt Payable
WIFA
Loans
Financed
Purchases
SBITA
Total
Business-
Type Debt
Total
Primary
Government
Per
Capita
Percentage
of Personal
Income
2016
$ 185,025,000
$
91,876,000
$
-
$
26,735,479
$
11,097,761
$
63,750
$
–
$
314,797,990
$
665,450,447
3,816
14.23 %
2017
187,835,000
80,466,000
-
26,648,171
10,347,660
318,834
–
305,615,665
643,253,707
3,553
12.63
2018
191,635,000
69,876,000
-
27,703,607
9,581,644
213,267
–
299,009,518
643,253,707
3,525
12.53
2019
197,700,000
57,886,000
-
30,951,583
8,799,363
736,327
–
296,073,273
611,420,442
3,178
10.23
2020
177,795,000
54,331,000
38,000,000
27,176,457
8,000,463
480,916
–
305,783,836
626,334,944
3,199
9.62
2021
156,105,000
50,543,000
72,100,000
35,391,535
7,184,583
327,068
–
321,651,186
643,268,894
3,562
10.44
2022
189,535,000
46,703,000
69,570,000
37,695,756
6,351,352
166,851
–
350,021,959
1,024,856,078
6,193
24.38
2023
177,767,872
42,528,000
66,895,000
35,672,156
5,500,392
–
494,365
328,857,785
1,019,630,082
5,483
13.38
2024
203,735,000
37,557,000
64,120,000
35,884,002
4,631,315
–
342,455
346,269,772
1,044,821,821
5,504
12.48
2025
234,115,000
52,020,000
61,245,000
37,001,987
3,743,725
–
444,387
388,570,099
1,103,806,499
5,806
12.73
139
Direct and Overlapping Governmental Activities Debt (Exhibit S-16)
City of Tempe, Arizona
2025 Net
Limited
Assessed
Valuation
Debt
Outstanding
Portion Applicable To
City of Tempe
Combined
Tax Rate
per $100
Assessed
Governmental Unit:
Percent
Amount
Debt repaid with property taxes:
State of Arizona
$ 88,425,625,840
None
2.91 %
None $
—
Maricopa County
58,328,686,360
None
4.42
None
1.5011
Maricopa Special Health Care District
58,328,686,360 $
544,135,000
4.42
$
24,042,971
0.2665
Maricopa County Community College
58,328,686,360
576,915,000
4.42
2,545,758
1.1047
Tempe Elementary School District No. 3
2,026,991,042
161,650,000
84.34
136,333,776
4.0477
Mesa Unified School District No. 4
4,064,865,288
211,485,000
0.65
1,377,622
6.5261
Kyrene Elementary School District No. 28
2,715,520,369
217,655,000
30.18
65,695,736
3.3826
Scottsdale Unified School District No. 48
7,025,018,982
265,255,000
0.31
817,151
3.2504
Tempe Union High School District No. 213
4,742,511,408
144,820,000
53.33
77,232,414
2.3628
East Valley Institute of Technology
28,325,407,262
None
9.10
None
0.0500
Subtotal overlapping debt
308,045,428
City direct debt (governmental activities)
$ 2,577,292,263 $
715,236,400
100.00 %
715,236,400
2.4291
Total direct and overlapping debt
$ 1,023,281,828
Source: RBC Capital Markets and Maricopa County Assessor
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding
debt of those overlapping governments that is borne by the residents and businesses of the City of Tempe. This process recognizes that, when considering the City's
ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that
every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.
The applicable percentage of each jurisdiction's assessed valuation which lies within the City's boundaries (see "Percent" column above) was derived from information
obtained from the County Assessor's Office.
140
Legal Debt Margin Information (Exhibit S-17)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Assessed Valuation
$ 6,624,732,683
$ 5,002,722,528
$ 3,445,248,462
$ 3,270,464,268
$ 2,985,831,463
$ 2,723,618,126
$ 2,457,096,949
$ 2,285,492,942
$ 2,125,705,145
$ 1,593,944,354
20% Limitation:
Debt limit equal to 20% of
assessed valuation
$ 1,000,544,506
$ 842,278,925
$ 689,049,692
$ 654,092,854
$ 597,166,293
$ 544,723,625
$ 491,419,390
$ 457,098,588
$ 425,141,029
$ 318,788,871
Total net debt applicable to 20%
limit
474,313,637
409,957,304
367,391,618
394,798,663
344,099,415
357,900,003
369,823,502
353,760,024
337,734,652
330,432,281
Legal 20% debt margin
(available borrowing
capacity)
$ 526,230,869
$ 432,321,621
$ 321,658,074
$ 259,294,191
$ 253,066,878
$ 186,823,622
$ 121,595,888
$ 103,338,564
$ 87,406,377
$
-
Total net debt applicable to the
20% limit as a percentage
of 20% debt limit
47.41%
48.67%
53.32%
60.36%
57.62%
65.70%
75.26%
77.39%
79.44%
103.65%
6% Limitation:
Debt limit equal to 6% of
assessed valuation
$ 300,163,352
$ 252,683,677
$ 206,714,908
$ 196,227,856
$ 179,149,888
$ 163,417,088
$ 147,425,817
$ 137,129,577
$ 127,542,309
$ 95,636,661
Total net debt applicable to 6%
limit
133,358,241
110,312,688
97,469,864
91,074,059
84,050,477
76,093,198
77,915,351
77,206,874
80,243,108
81,905,000
Legal 6% debt margin
(available borrowing
capacity)
$ 166,805,111
$ 142,370,989
$ 109,245,044
$ 105,153,797
$ 95,099,411
$ 87,323,890
$ 69,510,466
$ 59,922,703
$ 47,299,201
$ 13,731,661
Total net debt applicable to the
6% limit as a percentage of
6% debt limit
44.43%
43.66%
47.15%
46.41%
46.92%
46.56%
52.85%
56.30%
62.91%
85.64%
Source:
Maricopa County Assessor's Office
City of Tempe, Arizona Accounting Division
Note 1:
Prior to Fiscal Year 2016, the Assessed Valuation was based on the Net Assessed Secondary Value . Due to a change in the legislation (Proposition 117), in Fiscal Year 2016, the City was required to use the
Limited Property Value. In Fiscal Year 2017, the law changed again to allow the Full Cash Value to be used in the legal debt margin calculation.
141
Remaining General Obligation Bond Authorizations (Exhibit S-18)
City of Tempe, Arizona
Authorization
Prior
Issues
Current Year
Issue
Remaining
Authorization
2016 Program:
Water/Wastewater
$ 148,000,000 $ 143,864,657 $
4,135,343 $
-
Streets/Transportation/Storm
Drains
25,000,000
20,000,000
-
-
Public Safety - Police/Fire
20,000,000
34,000,000
-
-
Community Services/Park
Improvements
34,000,000
27,000,000
-
-
Municipal Infrastructure
Preservation
27,000,000
25,000,000
-
-
Total 2016 Program
254,000,000
249,864,657
4,135,343
-
2020 Program:
Water/Wastewater
134,000,000
-
48,926,989
85,073,011
Streets/Transportation/Storm
Drains
74,000,000
21,731,401
23,200,000
29,068,599
Public Safety - Police/Fire
34,000,000
27,497,636
6,502,364
-
Community Services/Park
Improvements
45,000,000
32,826,953
7,705,743
4,467,304
Municipal Infrastructure
Preservation
62,000,000
52,753,594
9,246,406
-
349,000,000
134,809,584
95,581,502
118,608,914
Grand Total
$ 1,184,500,000 $ 384,674,241 $ 132,874,350 $ 666,951,409
Source: City of Tempe, Arizona Accounting Division
142
Pledged-Revenue Coverage (Exhibit S-19)
Last Ten Fiscal Years
City of Tempe, Arizona
Special Assessment Bonds
Excise Tax Revenue Obligations
Fiscal
Year
Special
Assessment
Collections
Debt
Service (d)
Coverage
Excise
Tax
Revenue
Collections
(a)
Debt
Service (d)
Coverage
2016
$ 2,439,086 $ 2,214,178
1.10 $ 160,648,676 $ 45,696,593
3.52
2017
2,173,798
2,209,650
0.98 166,058,633 36,355,425
4.57
2018
2,027,722
2,212,190
0.92
178,992,195
20,743,689
8.63
2019
1,990,732
2,211,570
0.90 182,518,296 20,739,629
8.80
2020
2,442,290
2,207,767
1.11 190,619,346 12,637,348
15.08
2021
2,143,728
2,210,533
0.97 198,947,519 12,652,543
15.72
2022
2,126,515
1,989,250
1.07 206,991,736 12,703,056
16.29
2023
1,911,731
1,984,125
0.96 233,366,585 11,938,011
19.55
2024
1,582,150
1,985,500
0.80 240,428,133
8,755,062
27.46
2025
1,656,907
1,585,000
1.05 230,004,020 14,135,000
16.27
Performing Arts/Arts + Culture Excise Tax Obligations
Transit Excise Tax Obligations
Fiscal
Year
0.1%
Privilege
and Use Tax
Collections
(b)
Debt
Service (d)
Coverage
0.5%
Privilege
and Use Tax
Collections
(c)
Debt
Service (d)
Coverage
2016
$ 7,656,210 $ 5,921,676
1.29 $ 37,288,527 $ 4,658,463
8.00
2017
8,084,891
3,427,850
2.36 39,512,636
4,372,288
9.04
2018
8,436,503
3,428,850
2.46 41,074,434
4,311,491
9.53
2019
8,823,434
3,428,100
2.57 43,063,185
4,116,542
10.46
2020
9,131,870
3,433,850
2.66 44,373,904
4,118,094
10.78
2021 (e)
4,895,809
—
N/A 47,534,174
4,978,120
9.55
2022
11,202,441
504,233
22.22 54,736,977
5,901,166
9.28
2023
11,647,867
580,750
20.06 57,815,447
4,689,492
12.33
2024
11,482,634
579,250
19.82 57,413,170
4,695,249
12.33
2025
11,151,942
582,000
19.16 55,759,709
4,689,034
11.89
Source: City of Tempe, Arizona Accounting Division
(a)
Excise tax revenue collections include privilege and use tax, state shared privilege and use tax, state shared
income tax, franchise tax, permits and fees, and fines and forfeitures. Note that the privilege and use tax
exclude the 0.5% excise tax approved by voters on September 10, 1996 as a dedicated "transit tax", the 0.1%
Performing Arts Center Tax approved by voters in September 2000, and the 1.0% increase in the transient
lodging tax on hotels approved by the voters in September 2002, which is restricted to fund programs of the
Tempe Convention and Visitor's Bureau.
143
(b)
The 0.1% privilege and use tax is a Performing Arts Center Tax approved by voters in September 2000
(expiring December 31, 2020) and the 0.1% Arts & Culture Tax approved by voters in November 2018
(effective January 1, 2021).
(c)
The 0.5% privilege and use tax is a Transit Tax approved by voters in September 1996.
(d)
The debt service amount does not include fiscal agent fees.
(e)
Beginning January 1, 2021, the Performing Arts Excise Tax ended and there was no outstanding Performing
Arts Excise Tax Obligation debt service after Fiscal Year 2020.
144
Pledged Revenue, Projected Debt Service and Estimated Coverage (Exhibit S-20)
Excise Tax Obligations (Excluding Transit Excise Tax Obligations)
City of Tempe, Arizona
Senior Excise Tax Obligations
Fiscal
Year
Pledged
Excise Tax
Revenues (a)
Outstanding
Senior Excise Tax
Obligations
Debt Service
Requirements (b)
Outstanding
Senior Excise Tax
Obligations
Coverage (c)
Revenue
Available for
Debt Service (d)
Outstanding
Subordinate Excise Tax
Obligations
Debt Service
Requirements (e)
Coverage (f)
2025
$ 230,004,020 $
14,135,000
16.27
$
227,020,962 $
582,000
390.07 %
2026
5,525,000
41.63
578,350
392.53
2027
5,830,000
39.45
579,700
391.62
2028
6,100,000
37.71
581,000
390.74
2029
6,390,000
35.99
582,250
389.90
2030
5,095,000
45.14
577,500
393.11
2031
5,325,000
43.19
582,000
390.07
2032
3,180,000
72.33
580,250
391.25
2033
2,765,000
83.18
577,500
393.11
2034
845,000
272.19
578,750
392.26
2035
890,000
258.43
578,750
392.26
2036
935,000
245.99
577,500
393.11
2037
980,000
234.70
2038
1,030,000
223.30
2039
1,080,000
212.97
2040
1,135,000
202.65
2041
1,190,000
193.28
2042
1,250,000
184.00
2043
1,310,000
175.58
2044
1,380,000
166.67
2045
1,445,000
159.17
145
2038
2039
Source: City of Tempe, Arizona Accounting Division
(a)
Excise Tax Revenues received by the City in Fiscal Year 2025. See Excise Tax Collection schedule (Exhibit S-14).
(b)
Consists of the annual debt service requirements (not including fiscal fees) of the following Excise Tax Revenue/Refunding Obligations:
Series
Remaining Obligation
2016
$
18,390,000
2019R
8,110,000
2021R
14,210,000
2025
—
$
40,710,000
(c)
The estimated coverage figures shown reflect the ratio of actual Fiscal Year 2025 excise tax revenues to total debt service requirements for the City's
revenue bonds.
(d)
Consists of Arts and Culture Excise Taxes and Excise Taxes (net of current year annual debt service on Outstanding Senior Excise Tax Obligations)
received in Fiscal Year 2025.
(e)
Includes the annual debt service requirements of the City of Tempe, Arizona Arts and Culture Excise Tax Obligations, Series 2021, currently
outstanding in the principal amount of $5,895,000. Debt service requirements do not include fiscal fees.
(f)
Pursuant to the Purchase Agreement, the City agrees that the Arts and Culture Excise Taxes and the Excise Taxes presently imposed will continue to
be imposed so that the amount of Arts and Culture Excise Taxes and the Excise Taxes (net of maximum annual debt service on the Outstanding
Senior Excise Tax Obligations) collected for any fiscal year shall be equal to at least three times the total Debt Service requirements for the Obligations
and other Parity Obligations in such fiscal year.
146
Pledged Revenue, Projected Debt Service and Estimated Coverage (Exhibit
S-21)
Transit Excise Tax Obligations
City of Tempe, Arizona
Senior Excise Tax Obligations
Fiscal
Year
Pledged
Excise Tax
Revenues (a)
Outstanding
Senior Excise Tax
Obligations
Debt Service
Requirements (b)
Outstanding
Senior Excise Tax
Obligations
Coverage (c)
2025
$
55,759,709 $
4,689,034
12.33
2026
4,692,521
12.32
2027
4,690,698
12.33
2028
4,693,842
12.32
2029
4,686,310
12.34
2030
4,699,737
12.30
2031
4,693,299
12.32
2032
4,692,892
12.32
2033
4,692,175
12.32
2034
4,695,933
12.31
2035
4,695,126
12.31
2036
2,019,412
28.63
2037
1,568,538
36.86
2038
861,150
67.14
2039
859,685
67.25
2040
862,680
64.64
Source: City of Tempe, Arizona Accounting Division
(a)
Excise Tax Revenues recognized by the City in Fiscal Year 2025.
(b)
Includes annual remaining debt service requirements for the Series 2017R City of Tempe, Arizona Transit
Excise Tax Refunding Obligations in the principal amount outstanding of $16,060,000; the Series 2020
City of Tempe, Arizona Transit Excise Tax Obligations in the principal amount outstanding of $12,165,000;
and the Series 2021R City of Tempe, Arizona Transit Excise Tax Refunding Obligations in the principal
amount outstanding of $28,330,000.
(c)
The estimated coverage figures shown reflect the ratio of actual Fiscal Year 2025 excise tax revenues to
total debt service requirements for the City's Transit excise tax bonds.
147
Pledged Revenue, Projected Debt Service and Estimated Coverage (Exhibit
S-22)
Water/Sewer Revenue Obligations
City of Tempe, Arizona
Senior Excise Tax Obligations
Fiscal Year
Pledged
Water/Sewer Net
Revenues (a)
Outstanding Water
& Sewer Revenue
Obligation Debt
Service
Requirements
Outstanding
Water & Sewer
Revenue
Obligation
Coverage (b)
2025
$
47,820,374 $
5,329,470
6.01
2026
5,329,025
6.01
2027
5,329,388
6.01
2028
5,330,308
6.01
2029
5,326,535
6.02
2030
5,333,070
6.01
2031
5,324,280
6.02
2032
5,330,548
6.01
2033
5,331,108
6.01
2034
5,330,843
6.01
2035
5,329,620
6.01
2036
5,327,190
6.01
2037
5,328,303
6.01
2038
5,327,458
6.01
2039
5,329,523
6.01
2040
5,328,998
6.01
2041
2,850,750
16.77
Source: City of Tempe, Arizona Accounting Division
(a)
Net Revenues are defined as that portion of the Revenues remaining after providing sufficient funds for
the Current Expenses of the System.
(b)
The estimated coverage figures shown reflect the ratio of actual Fiscal Year 2025 Pledged Water/Sewer
Net Revenues the annual total Debt Service Requirements for the Water & Sewer Revenue Obligations.
148
Demographic and Economic Statistics (Exhibit S-23)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
Year
Population (a)
Total
Personal
Income (b)
Per Capita
Personal
Income (c)
Average
Household
Income (c)
Median
Age (c)
School
Enrollment (d)
ASU
School
Enrollment (e)
Unemployment
Rate (f)
2025
190,114
$ 8,671,289,654 $
45,611 $
106,238
30.4
21,708
61,256
3.40 %
2024
189,834
8,374,337,076
44,114
102,861
30.1
22,268
60,731
3.10
2023
185,950
7,622,648,350
40,993
96,012
30.7
23,806
60,839
3.10
2022
186,194
7,181,502,580
38,570
91,012
30.5
23,986
58,088
2.90
2021
180,587
6,159,822,570
34,110
82,283
29.8
23,838
56,095
6.20
2020
195,805
6,511,691,080
33,256
79,758
29.6
25,275
57,009
9.80
2019
192,364
5,975,402,932
31,063
72,792
30.4
25,478
55,224
4.10
2018
185,038
5,594,253,854
30,233
71,916
30.0
25,527
54,456
3.90
2017
182,498
5,134,033,736
28,531
67,501
29.5
24,891
75,729
4.30
2016
173,510
4,881,183,320
28,132
65,814
28.7
25,656
74,293
5.90
Source:
(a) Estimate obtained from State Shared Revenue Report published by the League of Arizona Cities & Towns.
(b) Amount is calculated using population times per capita personal income.
(c) Estimate is provided by Sites USA through FY 18-19 and by ESRI beginning FY 19-20.
(d) Arizona Department of Education (Azed.gov)
(e) ASU - Office of Institutional Analysis. Fiscal Year 2018 and going forward the amount is for the ASU Tempe campus only.
(f)
https://www.azcommerce.com/oeo/labor-market/unemployment/#content-block-1
149
Principal Employers (Exhibit S-24)
Current Fiscal Year and Nine Years Prior
City of Tempe, Arizona
Fiscal Year
2025
Fiscal Year
2016
Employers:
Employees (a)
Rank
Employment
Employees (b)
Rank
Employment
Arizona State University
8,030
1
20.90 %
8,818
1
30.11 %
State Farm Insurance
6,670
2
17.36 %
3,082
3
10.52
g
Association
5,310
4
13.82 %
1,958
7
6.69
Amazon
5,050
5
13.14 %
-
-
-
SRP
2,950
6
7.68 %
2,236
5
7.64
City of Tempe
2,259
7
5.88 %
1,824
10
6.23
Kyrene School District 28
2,120
8
5.52 %
-
-
-
Doordash
2,060
9
5.36 %
-
-
-
ABM Industries Inc
2,000
10
5.21 %
2,000
6
6.83
Wells Fargo
1,970
-
5.13 %
3,553
2
12.13
Honeywell
-
-
-
1,658
8
5.66
Tempe Elementary School District #3
-
-
-
1,619
9
5.53
US Airways
-
-
-
2,537
4
8.66
Total
38,419
100.0 %
29,285
100.0 %
Source:
(a) https://geo.azmag.gov/maps/azemployer
(b) City of Tempe, Arizona Comprehensive Annual Financial Report, Fiscal Year 2016
150
Full-Time Equivalent City Government Employees by Function (Exhibit S-25)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
year
2025
Fiscal
year
2024
Fiscal
year
2023
Fiscal
year
2022
Fiscal
year
2021
Fiscal
year
2020
Fiscal
year
2019
Fiscal
year
2018
Fiscal
year
2017
Fiscal
Year
2016
Police
532
525
519
520
516
516
512
508
505
500
Fire medical rescue
250
244
241
230
221
220
214
174
155
156
Community services
389
384
349
306
283
297
305
304
297
286
Community development
84
86
89
86
82
84
79
85
83
88
Municipal court
46
44
44
43
43
43
43
43
43
42
Mayor and council
7
7
7
7
7
7
7
7
7
7
City manager
28
30
26
32
28
31
32
31
33
32
City attorney
31
31
30
29
28
28
27
25
25
26
Internal audit office
4
4
3
4
4
4
4
4
4
4
Municipal budget office
5
5
4
4
4
4
4
4
4
4
Economic development office
7
7
6
6
3
3
-
-
-
-
City clerk and elections
6
6
6
6
5
5
5
5
5
4
Financial services
110
110
108
108
-
-
-
-
-
-
Human resources
23
23
23
20
-
-
-
-
-
-
Information technology
89
88
85
82
-
-
-
-
-
-
Strategic Management &
7
6
6
-
-
-
-
-
-
-
Government Relations
1
1
1
-
-
-
-
-
-
-
Diversity, Equity & Inclusion
3
3
3
-
-
-
-
-
-
-
Communication Marketing
14
14
13
-
-
-
-
-
-
-
Education, Career & Family
-
106
108
-
-
-
-
-
-
-
Community Health & Human
206
103
95
-
-
-
-
-
-
-
Public works
317
278
-
-
-
-
429
431
430
470
Transportation & Sustainability
100
126
Engineering and transportation
-
-
121
118
116
106
-
-
-
-
Municipal utilities
-
-
277
261
257
267
-
-
-
-
Internal services
-
-
-
-
207
212
210-
217-
206-
156
Human services
-
-
-
190
156
147
54-
50-
46-
49
Office of strategic management
and diversity
-
-
-
6
6
8
7
6
6
6
Total
2,259
2,231
2,170
2,060
1,967
1,983
1,932
1,888
1,849
1,824
Source: City of Tempe, Arizona Fiscal Year 2025 Annual Budget
Note:
See Exhibit S-2a for changes in functions that have occurred in prior years.
151
Operating Indicators by Function/Program (Exhibit S-26)
Last Ten Fiscal Years
City of Tempe, Arizona
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Function /Program
Police
Crime rate (per 100,000 population)
5,198
5,880
4,237
4,944
4,606
4,247
4,752
4,478
5,063
4,900
Traffic accidents
4,365
4,632
4,818
3,833
3,012
4,945
5,857
5,621
5,638
5,376
Emergency service average response time
(minimum)
6:16
6:35
6:23
6:19
6:24
6:27
6.66
6.60
6.36
6.83
Citizen calls for police service
73,729
81,061
83,813
85,516
79,072
83,427
90,055
91,012
88,515
86,229
Operating expenditures per citizen calls (a)
$
1,824
$
1,499
$
1,282
$
1,167
$
1,212
$
1,166
$
1,015
$
968
$
917
$
926
Fire
Firefighters per capita (10,000)
9.32
9.52
9.33
9.3
9.33
8.86
11.60
8.82
Number of fire calls
2,353
2,546
2,532
2,746
2,369
2,207
1,980
2,212
2,565
1,944
Number of medical calls
22,469
23,311
24,533
24,729
21,582
21,761
22,209
22,093
26,633
20,021
Number of other assistance calls
1,797
2,098
1,991
2,045
2,068
2,117
2,324
1,916
2,637
1,963
Emergency service average response time
(minimum)
0.04
4:43
4:40
4:38
4:31
4:31
4:31
4:15
3:36
4:16
Percent of emergency responses taking
6.0 minutes or less (d)
78%
79%
79%
80%
82%
80%
80%
75%
74%
73%
Transportation
Percent of on-time bus performance (f)
83%
82%
83%
85%
87%
N/A
92%
92%
90%
90%
Annual bus boardings
4,443,615
3,909,167
3,676,750
2,701,540
1,967,142
4,741,442
6,022,149
6,407,657
6,484,875
6,841,497
Annual rail boardings (e)
2,646,063
2,823,038
2,511,247
1,703,120
1,241,440
2,588,121
3,008,033
3,145,896
N/A
N/A
Number of square yards of asphalt
repaired
819,522
1,177,933
1,062,443
1,021,983
720,275
918,426
1,225,309
736,076
731,425
402,900
Library
Registered borrowers
76,248
73,305
87,848
88,366
110,808
104,791
93,689
100,155
97,443
140,000
Circulation
1,047,380
992,008
914,753
763,686
497,675
566,745
743,931
802,492
855,055
800,000
Community development
Number of permits issued for commercial /
industrial
542
460
464
369
447
476
541
503
644
775
Valuation of commercial/industrial permits
$ 746,648,858
$ 649,286,761
$ 409,458,156
$ 570,407,379
$ 435,445,691
$ 725,909,656
$ 790,508,270
$ 739,627,514
$ 270,664,400
$ 333,250,987
Number of permits issued for residential
1,366
805
1,247
1,382
965
603
573
532
122
474
Valuation of residential permits
$ 49,280,014
$ 36,587,866
$ 32,319,819
$ 44,418,957
$ 37,855,549
$ 40,035,903
$ 32,849,626
$ 35,888,436
$ 157,887,839
$ 274,402,813
Number of permits issued other
389
548
390
583
981
1102
1053
1165
1
1
Valuation of other permits
$ 41,619,324
$ 102,205,815
$ 73,063,218
$ 24,408,687
$ 32,290,151
$ 25,876,027
$ 35,278,125
$ 40,037,341
$
60,000
$
150,000
Water/wastewater
Number of customer accounts (annual
average)
43,007
42,932
43,327
43,319
42,949
43,724
43,284
43,214
42,647
43,061
Total water gallons treated (million gallons
- mg)
14,532
14,339
14,190
15,580
16,600
15,154
15,506
16,090
15,506
15,278
Operating and maintenance cost per
customer account
$
1,358
$
1,396
$
1,305
$
1,167
$
1,070
$
783
$
995
$
979
$
953
$
941
Total wastewater gallons treated (million
gallons per day)
18.8
19.0
19.4
19.6
19.0
19.0
19.1
19.1
19.4
19.4
Solid waste collection
Residential container/recycling cost per
ton
$
21
$
77
$
177
$
232
$
258
$
159
$
235
$
111
$
139
$
138
152
Number of residential accounts
33,744
33,574
33,326
33,328
34,540
33,245
33,263
32,869
33,160
33,001
Residential recycling diversion rate (c)
20%
21%
18%
20%
18%
23%
23%
28%
19%
21%
Number of commercial accounts
1,516
1,471
1,454
1,487
1,722
1,491
1,565
1,641
1,671
1,709
Commercial collection cost per ton
$
107
$
131
$
103
$
97
$
98
$
342
$
113
$
100
$
93
$
91
(a)
Source: City of Tempe, Arizona Municipal Budget Office and other applicable City departments.
(b)
The numbers are revised by department to reflect change in methodology in tracking.
(c)
This calculation consists of the blue container program and green organics.
(d)
For Fiscal Years 2017 and prior, the percents measured were for 5.0 minutes or less.
(e)
For Fiscal Years 2017 and prior, this data was not requested.
(f)
Due to a system conversion, data was not available for all of Fiscal Year 2020 and for part of Fiscal Year 2021.
153
Capital Asset Statistics by Function/Program (Exhibit S-27)
Last Ten Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Fiscal
Year
2020
Fiscal
Year
2019
Fiscal
Year
2018
Fiscal
Year
2017
Fiscal
Year
2016
Police
Stations
3
3
3
3
3
3
3
3
3
3
Patrol units (squads)
20
21
21
21
21
21
21
21
21
24
Fire stations
7
7
7
7
7
7
6
6
6
6
Transportation
Streets (miles)
1,321
1,321
1,321
1,775
1,775
1,241
1,241
1,241
1,241
1,241
Streetlights
12,361
12,267
12,301
12,274
11,559
11,483
11,414
12,048
12,026
11,969
Traffic signals
248
249
254
249
244
235
230
230
229
228
Buses
131
118
118
120
124
124
124
124
125
125
Parks and recreation
Acreage (a)
1,519
1,519
1,519
1,519
1,519
1,875
1,875
1,875
1,875
1,872
Playgrounds
44
44
44
44
44
45
45
45
45
45
Sports fields (b)
66
66
66
66
66
200
200
200
200
200
Community centers
6
6
5
5
5
5
5
5
5
5
Golf courses
2
2
2
2
2
2
2
2
2
2
Water/wastewater
Water mains (miles)
850
850
850
850
850
850
850
850
850
833
Water production capacity (million
gallons per day)
137
137
137
137
137
137
137
137
137
125
Water storage capacity (million
gallons)
54
54
54
54
54
54
54
54
54
54
Sanitary sewers (miles)
495
495
495
495
495
495
495
495
495
495
Storm sewers (miles)
231
231
231
231
231
231
231
231
231
231
Wastewater treatment capacity
(million gallons per day)
29
29
29
29
29
29
29
29
29
29
Solid waste collection
Collection trucks
42
42
42
42
42
42
43
43
43
45
Source: City of Tempe, Arizona Municipal Budget Office and other applicable City departments.
154
Water Connections by Customer Type, Sewer Connections and Sewage
Treated (Exhibit S-28)
Last Four Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Water Connections
Customer Type:
Single Family
34,911
35,038
35,007
35,135
35,204
Multifamily
1,951
1,936
1,933
1,902
1,907
Commercial
3,988
3,878
3,946
3,946
3,950
Industrial
72
73
73
73
73
Landscape
2,043
2,007
2,000
2,014
2,005
Total (a)
42,965
42,932
42,959
43,070
43,139
Sewer connections
No. of Sewer Connections
40,678
40,699
40,707
40,784
40,596
Sewage treated
91st Avenue Plant (MGD)
18.8
19.0
19.4
19.2
19
Source: City of Tempe, Municipal Utilities Department.
(a)
Total number of accounts billed in any month is less than the total number of connections due to vacancies.
Note:
This schedule is required for the Series 2021 City of Tempe, Arizona Water and Sewer Revenue Obligations and is
intended to show information for ten years. Additional years' information will be displayed as it becomes available.
155
Water Deliveries (Exhibit S-29)
Last Four Calendar Years
City of Tempe, Arizona
Calendar
Year
2025 (c)
Calendar
Year
2024 (c)
Calendar
Year
2023 (c)
Calendar
Year
2022 (c)
Calendar
Year
2021
Water Deliveries
Residential (a)
21,958
21,785
20,257
20,077
22,512
Commercial
10,077
10,884
10,245
10,447
11,324
Other (b)
11,564
11,336
10,475
10,377
11,617
Total
43,599
44,005
40,977
40,901
45,453
Source: City of Tempe, Municipal Utilities Department.
(a)
Residential includes both single family and multifamily housing.
(b)
Other includes industrial, landscape and construction.
(c)
Water Deliveries are from January through November 30 each calendar year.
Note:
This schedule is required for the Series 2021 City of Tempe, Arizona Water and Sewer Revenue Obligations and is
intended to show information for ten years. Additional years' information will be displayed as it becomes available.
156
Metered Water Usage Charges (Exhibit S-30)
Last Four Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Single Family Residential-Inside City
Tier Level (gallons used)
0 - 6,000
$
3.16
$
2.90
$
2.53
$
1.90
$
1.84
6,001 - 8,000
$
3.16
2.90
2.53
2.91
2.83
8,001 - 12,000
$
5.17
4.51
3.93
2.91
2.83
12,001 - 16,000
$
5.17
4.51
3.93
4.01
3.89
16,001 - 20,000
$
6.62
5.74
5.00
4.01
3.89
20,001 - 36,000
$
6.62
5.74
5.00
5.08
4.93
36,001 - 40,000
$
7.88
6.64
5.79
5.08
4.93
Over 40,000
$
7.88
6.64
5.79
5.58
5.42
Single Family Residential-Outside City
Tier Level (gallons used)
0 - 6,000
$
4.11
$
3.29
$
3.29
$
2.46
$
2.39
6,001 - 8,000
$
4.11
3.29
3.29
3.79
3.68
8,001 - 12,000
$
6.72
5.11
5.11
3.79
3.68
12,001 - 16,000
$
6.72
5.11
5.11
5.21
5.06
16,001 - 20,000
$
8.61
6.50
6.50
5.21
5.06
20,001 - 36,000
$
8.61
6.50
6.50
6.60
6.41
36,001 - 40,000
$
10.24
7.53
7.53
6.60
6.41
Over 40,000
$
10.24
7.53
7.53
7.26
7.05
Charges Per Thousand Gallons (a)
Customer Class-Inside City
Multifamily
$
3.53
$
2.81
$
2.81
$
2.11
$
2.11
Commercial
$
4.03
3.16
3.16
2.73
2.73
Construction
$
5.35
4.66
4.66
4.42
4.42
Industrial
$
3.96
3.12
3.12
2.85
2.85
Landscape
$
5.37
4.26
4.26
4.08
4.08
Customer Class-Outside City
Multifamily
$
4.59
$
3.65
$
3.65
$
2.74
$
2.74
Commercial
$
5.24
4.11
4.11
3.55
3.55
Construction
$
6.96
6.06
6.06
5.74
5.74
Industrial
$
5.15
4.06
4.06
3.71
3.71
Landscape
$
6.98
5.54
5.54
5.30
5.30
Source: City of Tempe, Municipal Utilities Department.
(a)
Volume charge per one thousand (1,000) gallons usage based on customer class.
Note:
This schedule is required for the Series 2021 City of Tempe, Arizona Water and Sewer Revenue Obligations and is
intended to show information for ten years. Additional years' information will be displayed as it becomes available.
157
Water Rates and Sewer Rates Per Meter Size(Exhibit S-31)
Last Four Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Water Monthly Service Charge
Inside City
5/8 inch
$
12.10
$
11.75
$
10.25
$
13.55
$
13.55
3/4 inch
13.60
13.20
11.50
15.30
15.30
1 inch
20.10
19.30
16.80
22.80
22.80
1 1/2 inch
41.85
39.75
34.65
48.40
48.40
2 inch
79.40
75.10
65.45
94.35
94.35
3 inch
118.95
112.35
97.90
213.45
213.45
4 inch
277.65
261.75
228.10
307.65
307.65
6 inch
800.35
753.85
656.95
1,183.00
1,183.00
8 inch
1,241.50
1,168.15
1,018.85
2,064.50
2,064.50
10 inch
1,858.75
1,750.20
1,525.25
3,092.90
3,092.90
1.0" installed to accommodate
sprinklers
12.10
11.75
10.25
13.55
13.55
Outside City
5/8 inch
$
15.75
$
15.28
$
13.35
$
17.62
$
17.62
3/4 inch
17.70
17.16
14.95
19.89
19.89
1 inch
26.15
25.09
21.85
29.64
29.64
1 1/2 inch
54.40
51.68
45.05
62.92
62.92
2 inch
103.20
97.63
85.10
122.66
122.66
3 inch
154.65
146.06
127.25
277.49
277.49
4 inch
360.95
340.28
296.55
399.95
399.95
6 inch
1,040.45
980.01
854.05
1,537.90
1,537.90
8 inch
1,613.95
1,518.60
1,324.50
2,683.85
2,683.85
10 inch
2,416.40
2,275.26
1,982.85
4,020.77
4,020.77
1.0" installed to accommodate
sprinklers
15.75
15.28
13.35
17.62
17.62
Sewer Monthly Base Charge
5/8 inch
$
10.90
$
9.90
$
9.30
$
10.30
$
10.30
3/4 inch
12.50
11.40
10.70
14.00
14.00
1 inch
19.25
17.70
16.65
25.10
25.10
1 1/2 inch
42.00
39.00
36.70
46.70
46.70
2 inch
81.30
75.75
71.30
72.60
72.60
3 inch
122.70
114.55
107.80
176.00
176.00
4 inch
288.70
269.95
254.05
349.00
349.00
6 inch
835.60
782.00
736.00
695.00
695.00
8 inch
1,297.10
1,214.10
1,142.65
1,650.00
1,650.00
10 inch
1,942.90
1,818.75
1,711.75
2,600.00
2,600.00
Source: City of Tempe, Municipal Utilities department.
Note:
This schedule is required for the Series 2021 City of Tempe, Arizona Water and Sewer Revenue Obligations and is
intended to show information for ten years. Additional years' information will be displayed as it becomes available.
158
Sewer Service Rates(Exhibit S-32)
Last Four Fiscal Years
City of Tempe, Arizona
Fiscal
Year
2025
Fiscal
Year
2024
Fiscal
Year
2023
Fiscal
Year
2022
Fiscal
Year
2021
Sewage Return Flow Rate of Metered Water Use
Customer Class
Multifamily
95%
95%
95%
95%
95%
Multifamily w/ sprinkler
95%
95%
95%
95%
95%
Commercial: self-service laundry
95%
95%
95%
95%
95%
Commercial: laundry/dry cleaners
95%
95%
95%
95%
95%
Commercial: restaurants/bakeries
95%
95%
95%
75%
75%
Commercial: food sales
95%
95%
95%
75%
75%
Commercial: hospitals
95%
95%
95%
85%
85%
Commercial: other
95%
95%
95%
90%
90%
Volume Charge per 1,000 gallons
Customer Class
Multifamily
$ 3.26
$ 2.54
$ 2.39
$ 1.84
$ 1.84
Multifamily w/ sprinkler
—
3.28
2.39
3.28
3.28
Commercial: self-service laundry
3.54
3.22
3.03
2.82
2.82
Commercial: laundry/dry cleaners
5.49
4.72
4.44
7.91
7.91
Commercial: restaurants/bakeries
5.49
4.72
4.44
7.91
7.91
Commercial: food sales
5.49
4.72
4.44
4.58
4.58
Commercial: hospitals
3.54
3.22
3.03
3.06
3.06
Commercial: other
3.54
3.22
3.03
3.06
3.06
Source: City of Tempe, Municipal Utilities Department.
Note:
This schedule is required for the Series 2021 City of Tempe, Arizona Water and Sewer Revenue Obligations and is
intended to show information for ten years. Additional years' information will be displayed as it becomes available.
159
City of Tempe, Arizona
160