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Issued by:
Finance Department
CITY OF EL MIRAGE, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
CITY OF EL MIRAGE, ARIZONA
Table of Contents
Introductory Section:
Page
Letter of Transmittal ................................................................................................................................ i
Organizational Chart ............................................................................................................................ vii
List of Principal Officials .................................................................................................................... viii
GFOA Certificate of Achievement ....................................................................................................... xii
Financial Section:
Independent Auditors’ Report ................................................................................................................ 1
Management’s Discussion and Analysis ................................................................................................ 5
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ........................................................................................................ 19
Statement of Activities ............................................................................................................ 20
Fund Financial Statements:
Balance Sheet – Governmental Funds ..................................................................................... 22
Reconciliation of Total Governmental Fund Balances
To Net Position of Governmental Activities ........................................................................ 23
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds ................................................................................. 24
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ............................ 25
Statement of Net Position - Proprietary Funds ........................................................................ 26
Statement of Revenues, Expenses and Changes
in Net Position - Proprietary Funds ...................................................................................... 27
Statement of Cash Flows - Proprietary Funds ......................................................................... 28
Notes to the Financial Statements ............................................................................................... 29
Required Supplemental Information:
Schedule of the Proportionate Share of the Net Pension Liability ................................................. 64
Schedule of the Proportionate Share of the Net OPEB Liability ................................................... 65
Schedule of Changes in the Net Pension Liability and Related Ratios .......................................... 66
Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................ 68
Schedule of Pension/OPEB Contributions ..................................................................................... 70
Notes to Pension/OPEB Plan Schedules ........................................................................................ 74
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – General Fund ...................................................................................................... 78
Notes to General Fund Budget and Actual Schedules ................................................................... 80
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Special Projects Fund ......................................................................................... 81
Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Streets (Capital Project Fund) ............................................................................ 84
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ....................................................... 86
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds ................................................................... 88
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Municipal Court Enhance .................................................................................. 90
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Court Photo Enforcement ................................................................................... 91
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Dial-A-Ride (LTAF) .......................................................................................... 92
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Police Towing .................................................................................................... 93
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Community Development Block Grant ............................................................. 94
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Streets (HURF) .................................................................................................. 95
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual –Debt Service ........................................................................................................ 96
Statistical Section:
Financial Trends:
Net Position by Component ........................................................................................................... 99
Governmental and Business-Type Activities Expense ................................................................ 100
Program Revenues and Net (Expense)/Revenue ......................................................................... 102
General Revenues, Transfers, and Total Changes in Net Position .............................................. 104
Fund Balances - Governmental Funds ......................................................................................... 106
Governmental Funds Revenues ................................................................................................... 108
Governmental Funds Expenditures and Debt Service Ratio ........................................................ 110
Other Financing Sources and Uses and Net Changes
in Fund Balances - Governmental Funds ................................................................................. 112
Revenue Capacity:
Taxable Sales by Category ........................................................................................................... 113
Transaction Privilege (Sales) Tax Revenue Payers by Industry .................................................. 114
Direct and Overlapping Property Tax Rates ................................................................................ 115
Property Tax Levies and Collections ........................................................................................... 116
Assessed Value and Full Cash Value of Taxable Property .......................................................... 117
Principal Property Tax Payers ..................................................................................................... 118
Debt Capacity:
Ratios of Outstanding Debt by Type ........................................................................................... 119
Ratios of General Bonded Debt Outstanding ............................................................................... 120
Direct and Overlapping Governmental Activities Debt ............................................................... 121
Legal Debt Margin Information Unrestricted and Restricted ...................................................... 122
Demographic and Economic Information:
County-Wide Demographic and Economic Statistics .................................................................. 123
Principal Employers ..................................................................................................................... 124
Operating Information:
Full-Time Equivalent City Government Employees by Function ............................................... 125
Capital Asset Information ............................................................................................................ 126
Operating Indicators by Function ................................................................................................ 127
Other Communications From Independent Auditors:
Independent Auditors’ Report on Internal Control over Financial Reporting
and on Compliance and Other Matters ........................................................................................ 131
Report on Compliance with State Laws and Regulations .................................................................. 133
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INTRODUCTORY SECTION
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Finance Department
10000 N. El Mirage Road, El Mirage, AZ 85335
623-876-2953; Fax 623-972-8110; TDD 623-933-3258
www.elmirageaz.gov
October 20, 2020
Honorable Mayor and Members of the City Council
El Mirage, AZ 85335
State law mandates that all general-purpose local governments are required to undergo an annual
Single Audit and publish a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America and audited in
accordance with standards generally accepted in the United States by a certified public accounting
firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the
comprehensive annual financial report of the City of El Mirage, Arizona (City) for the fiscal year
ended June 30, 2020.
This report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the City’s assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the City’s financial statements in
conformity with accounting principles generally accepted in the United States of America.
Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free of material misstatement. As management, we
assert that, to the best of our knowledge and belief, this financial report is complete and reliable in
all material respects.
The City’s financial statements have been audited by Hinton Burdick CPAs and Advisors, a
certified public accounting firm. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City for the fiscal year ended June 30, 2020, are free
of material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditors concluded, based upon the audit, that
there was a reasonable basis for rendering an unmodified opinion that the City’s financial
statements for the fiscal year ended June 30, 2020, are fairly presented in conformity with
accounting principles generally accepted in the United States of America. The independent
auditor’s report is presented as the first component of the financial section of this report.
i
Accounting principles generally accepted in the United States of America 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
City’s MD&A can be found immediately following the report of the independent auditors.
El Mirage Community Profile
Background, Population, and Business. El Mirage is situated on approximately 10 square miles
in the heart of the rapidly growing West Valley. The City was founded in 1937 by migrant farm
workers who settled on the west bank of the Agua Fria River and harvested the acres of roses,
cotton, and other crops that would come to define the City’s agricultural heritage. Since its
incorporation in 1951, the community
has transcended its agricultural
beginnings to become a vibrant,
diverse community with a current
population in excess of 35,000.
In recent years, El Mirage has adopted
economic development initiatives to
attract new commercial and industrial
businesses to the City. Impact fees
normally charged for
infrastructure expansion have been eliminated, and El Mirage has joined
with other West Valley cities to form the Greater Maricopa Foreign Trade
Zone, allowing goods to be moved through the region exempt from
certain U.S. Customs fees.
Local employers include Burlington Northern Santa Fe Railroad,
which operates an 82-acre vehicle distribution center in El Mirage.
Vulcan Materials Group, Cives, Microsoft, and Contech Engineered
Solutions are also among the firms representing the City’s industrial
and technology base. Luke Air Force Base, located one mile west of
El Mirage, is the largest jet fighter training base in the world and
employs over 1,500 civilians, many of whom are El Mirage residents.
The City of El Mirage offers a range of community facilities including a senior
center and library. Thirteen-acre
Gateway Park is the center for sports and family
gatherings in El Mirage, with an amphitheater,
picnic ramadas, shaded playgrounds, lighted
sports fields, and a skate plaza that is the first of
its kind in Arizona. El Mirage is also home to
Bill Gentry Park, a newly renovated little league
field that draws teams from throughout the
Valley for regular play, as well as regional
tournaments. The renowned Pueblo El Mirage
Golf Resort, situated on 310 acres in the City,
boasts an 18-hole professional golf course and
has home choices, as well as a host of indoor and
outdoor activities for active seniors.
ii
In November 2011, El Mirage voters authorized $2.5 million in bonds to construct a recreation
facility with swimming pool operated by the YMCA and $6.0 million for a new police facility.
The police facility was completed in December 2013, while the recreational facility opened for
business in July 2014.
Governing Structure. Like most Arizona cities and towns, El
Mirage operates under a council-manager form of
government. Under this system, the City Council hires a
City Manager to implement policy, as well as oversee the
daily administration and management of all City
departments. The City Manager is responsible for
developing a balanced budget ($85.8 million for FY 21)
and a capital improvement plan for council review and
approval each year. The City Manager also keeps the
council advised of the City’s financial condition and future
needs. The City Manager is responsible for the activities of
seven City departments and approximately 200 employees.
Policymaking and legislative authority are vested in a governing council consisting of the Mayor
and six Councilors. One of whom is selected as Vice-Mayor. All seven members of the council
are elected at large and on a non-partisan basis to serve a four-year term. Elections are staggered
so three councilors are elected every two years and the mayor is elected every four years. The
council is responsible for passing ordinances, adopting the budget, appointing committees, and
selecting the City Attorney, City Clerk, and Judge in addition to the City Manager.
Types and Levels of Services. The City of El Mirage
provides a full range of services including police and fire
protection, roadway maintenance and construction,
recreational and cultural activities, health and social
services, as well as general administrative services.
The City provides sewer and water services to its
residents, along with water services to residents in a
portion of the neighboring City of Surprise. El
Mirage contracts with a local sanitation company for
sanitary services. Enterprise funds were established for
the accounting and financial reporting of water, sewer, and
sanitation services.
Budget Process and Legal Level of Control. The annual expenditure budget serves as
the foundation for City financial planning and control. The objective of these budgetary controls
is to ensure compliance with legal provisions embodied in the annual expenditure budget
approved by the City Council. All City departments are required to submit requests for
appropriations during the budget process. The City Manager and Finance Department use these
requests plus the prior year’s operating budget as the starting point for assembling a proposed
budget for Council consideration. The Council holds a workshop to discuss the proposed budget
where presentations are made to the Council on revenues, expenditures, capital, staffing, and
taxes. Public hearings are then held on both the budget and proposed property levies. Both the
budget and the tax levy are approved by the Council before the 15th of August each year.
Maricopa County is required to set the tax rate to collect the levy that the Council sets. The
County sets the rate on the third Monday in August. The budget schedules provided by the state
are adopted at both the fund and department levels, which become the legal levels of control for
the City Council. Council must authorize all budget adjustments at these levels.
iii
Factors Affecting Economic Conditions
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment in which the City operates.
Local Economy. The El Mirage economy
was primarily dependent on housing
construction for many years. In 2004 the
City began to approach residential build-out
and the Maricopa County housing market
began to diminish causing unemployment
statewide, countywide, and locally to spike
(The local unemployment rate tends to be
slightly higher than county and state
levels.). Since that time, the City has turned
its focus toward retail and industrial growth
resulting in the opening of a Walmart Supercenter, Cives Steel, Burger King, Subway, Family
Dollar, Microsoft, and others in recent years. In addition, the number of local businesses
currently stands at 1,671 according to the American Community Survey. The lack of retail
growth within the City boundaries is a challenge that manifests in the City’s reliance on state
shared revenues as much as local sales and property taxes to remain financially balanced. State
shared revenues are distributions of sales, income, vehicle, and gasoline taxes based on a
statewide formula that was implemented as a result of limitations placed on the ability of cities
and towns to collect local revenues. Further information on the history of
City revenues may be found in the MD&A, page 5, and the statistical
section that begins on page 97 of this financial statement.
Long-term Financial Planning. In 2011, the Council adopted the City’s
first-ever, five-year Capital Improvements Plan (CIP) which is updated
annually. The CIP is based in part on a series of goals adopted by the
Council. The Council goals and the CIP are intended to make the City
more attractive to commercial development. As part of the CIP, the City
developed a five-year financial projection. If the City is successful in
expanding its retail base, the CIP will be revised upward each year.
The presence of Luke Air Force Base provides a significant employment and
economic engine for the community. However, Luke’s presence has placed significant land
use restrictions on large tracks of City property. Although such property is primarily zoned
‘agricultural’ at present, the City and the primary property owner have begun to convert this
property to commercial and industrial uses. Recent industries that have purchased property at
this site include Cavco Homes, Cives Steel, and Microsoft. While the property develops, the
City continues to concentrate on infill properties ranging in size from a few acres to more than
80 acres.
Given the continuing economic uncertainty at the local, state, and national levels, the City
Council and administration recognize the need to assure reserves are available for future revenue
shortfalls. Therefore, the budget reflects a General Fund reserve of $8.0 million. When the
Council approved a utility rate study in 2011, it established reserves for each of the three utilities
ranging from one month to three months. The reserves are not budgeted. The reserves are only
intended to offset shortfalls in revenue collections, not as an opportunity to increase
expenditures. By resolution, the Council also directed that all primary property taxes be
restricted to uses in support of police and fire operations.
iv
Relevant Financial Policies. Each year since June 2012, the City Council has adopted or
reviewed a series of comprehensive financial management policies designed to maintain a
financially viable city government that provides an adequate level of services, programs, and
activities that add value and contribute to the City’s mission, while providing financial flexibility
to adapt to local, regional, and national economic changes.
Some of the adopted financial policies that may help users better understand the financial data
included in this report are shown below:
The City shall maintain a prudent level of financial resources to protect against reducing
service levels, incurring debt, or raising taxes and fees because of unexpected revenue
shortfalls, unanticipated expenditures, and similar circumstances.
The City shall rely on ongoing revenues to fund ongoing expenditures and avoid one-time
sources of revenues to fund ongoing activities.
The Finance Director shall annually prepare five-year revenue and expenditure forecasts
to examine the City’s ability to absorb operating costs due to changes in the economy,
service demands, service levels, and capital improvements.
The City shall fund current year capital projects with bonds, grants, or funds accumulated
(fund balances) prior to budgeting for capital expenditures.
The City shall practice conservatism in budgeting for both revenues and expenditures to
ensure the City can meet its ongoing obligations. The City shall not budget excess funds
collected (fund balance) for ongoing expenditures.
The City shall develop diversified and stable revenue sources to protect activities from
short-term fluctuations in any single revenue source.
The City shall not dedicate revenues for specific purposes unless required by law, Council
policy, or Generally Accepted Accounting Principles (GAAP). The Finance Director shall
deposit all non-restricted revenues in the General Fund for appropriation through the
budget process.
The Council shall review user fees and charges annually to ensure recovery of all direct
and indirect costs of service, unless full cost recovery would be excessively burdensome
on citizens receiving service.
Major Initiatives. For the fiscal year ended June 30, 2020, the City had one major capital
initiative under construction that will have significant future impact on the quality of life for its
citizens, while expanding infrastructure and increasing the resources available for economic
development.
Dysart Road was identified as a “Road
of Regional Significance” back in the
1999 Maricopa Associations of
Governments (MAG) study and
currently has one lane in each direction
between Northern and Peoria Avenues.
The City is widening this corridor to
two 12 foot through lanes, a 14 foot
median, bike lanes and curb and gutter.
This project will include the design,
land acquisition and construction. The
total project cost estimate was originally
$11.1 million but has now increased to
$14.8 million.
v
Award and Acknowledgments
Award. The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City for its comprehensive annual
financial report for the fiscal year ended June 30, 2019. To be awarded this certificate, the City
published an easily readable and efficiently organized comprehensive annual financial report. This
report satisfied both generally accepted accounting principles in the United States and applicable
legal requirements.
This certificate is valid for a period of one year only. City finance officers believe that the current
comprehensive annual financial report meets the program’s requirements and we will be
submitting it to GFOA to determine its eligibility for the fiscal year ended June 30, 2020 certificate.
Acknowledgments. The timely preparation of the comprehensive annual financial report was
made possible by the dedicated service of the entire staff of the Finance Department. Each member
of the department and all departments who assisted are to be commended for their contributions to
the preparation of this report.
In closing, without the leadership and support of the City Council, preparation of this report would
not have been possible.
Respectfully submitted,
J. Crystal Dyches
Robert Nilles
City Manager
Deputy City Manager/Finance Director
vi
Legend:
Organizational Chart
Effective July 1, 2020
Citizens/Elected/
Appointed
Citizens of
El Mirage
Mayor and
City Council
City Court
Court
Court
Enhancement
City Clerk
City Attorney
City Manager
Development
Services
Community
Development
Building
Safety
Engineering
Code
Compliance
Capital
Streets
Fire
Public
Works
Parks
Facilities
Fleet
Streets
‐ HURF
Utilities
Human
Resources
Information
Technology
Police
Police
Towing
Deputy
City Manager
Finance
Non‐
Departmental
Debt
Service
Administration
Transit
‐ LTAF
CDBG
Special
Projects
Boards and
Commissions
Department
Heads
Divisions and
Activities
vii
City of El Mirage, Arizona
List of Elected City Officials
Mayor Alexis Hermosillo
Alexis Hermosillo is the Mayor of the City of El Mirage. As a proud fourth-
generation El Mirage resident, Alexis is passionate about her community.
Through her commitment to serve the public, she has worked for the largest
public transportation company in Maricopa County, was the manager of a radio
network under the Cesar Chavez Foundation, and worked for the U.S. House of
Representatives as a District Representative for Arizona Congressional District 3.
Alexis holds a Master’s degree in Journalism and a Bachelor’s degree in
Interdisciplinary Arts and Performance, both from Arizona State University.
Alexis is currently pursuing her Doctoral degree in Organizational Leadership
from Grand Canyon University.
Alexis is committed to the empowerment of women. She has served on the Board
of the YWCA of Metropolitan Phoenix, and has worked with the Hispanic
Women’s Corporation, supporting their national youth initiatives. Alexis also believes that investing in today’s
youth is an investment in our future. She has dedicated herself to engaging and motivating Latino youth through
leadership development programs with various organizations, such as UnidosUS (National Council of La Raza).
Vice Mayor Roy Delgado
Roy Delgado was raised in New Mexico by a single Mom who taught him the
importance of hard work and helping others. He is the oldest of 6 children. Roy
joined the Military (US Army) and served his country for 21 years. He is the
proud father of 2 sons, 4 grandchildren and 4 great-grandchildren.
As a young man with a family, he moved to Northern California where he worked
in the oil industry for Union Oil. That job brought him to Arizona where he
eventually met and married his wife, Suzie.
Roy's first experience with politics was in the late 1970's when he became
involved with Labor Leader and Farm Worker Advocate Cesar Chavez's fight to
improve the treatment of farm workers.
The Delgado's moved to El Mirage in 1997. They were looking for property with
acreage in order to have their horse on site. Shortly after settling in, Roy was approached about serving his
community by running for El Mirage City Council. Roy was also selected to serve as El Mirage's Mayor for a
short time. He has had the pleasure to sit on the El Mirage City Council for 19 years. Roy currently serves as the
City’s representative for the Community Development Advisory Committee (CDAC) of Maricopa County
Human Services Division. The Community Development Advisory Committee has brought in millions of Federal
dollars for City improvements.
viii
Councilmember Monica Dorcey
Monica Dorcey was born and raised in rural Wayne, Nebraska, one of nine siblings.
After graduating from Briar Cliff University in Sioux City, IA, she worked in the
independent adjusting business for 27 years, and in 2003 she went to work as a
Senior Claim Representative for Farmers Insurance Group, moving to El Mirage
with her daughter, Ashley. Monica is a member of Santa Teresita parish and has
served in several ministries over the years.
Monica is now retired but continues to be involved in a number of non-profit
organizations with a primary emphasis on children and their education, but also
fostering the growth and development of El Mirage. She has served in a number of
roles as a volunteer for the City of El Mirage. This work includes:
Served on the Planning and Zoning Commission since 2013 and is currently the Chairperson.
Served on the Judicial Review Committee from 2012—2017.
Named El Mirage Citizen of the Year in 2012.
Served on the planning committee for the El Mirage HOA training presented in 2016-2017.
President of the Northwest Valley YMCA Advisory Board, serving on the Board since 2014.
Treasurer of the Dysart Education Foundation Board and Scholarship Committee, active
Treasurer of Arizona Career Pathways, 2011—present.
President of the West Valley Neighborhoods Coalition.
Councilman Michael D. Hutchinson
Councilman Michael D. Hutchinson was recently elected to his first term on the
El Mirage City Council.
Michael has lived in El Mirage for more than six years, and has been very active
in the community.
He earned an Associates Degree in Administration of Justice. He has worked as a
theft and fraud investigator, as well as an Armed Responder at Palo Verde
Nuclear Generating Station. He started his own security firm in 2012, providing security, compliance, loss and
liability protection to commercial entities.
As a businessman, Michael wants to help keep El Mirage safe, prosperous and business-friendly so that all of
our families can continue to grow and thrive. His goal is to attract commercial business as well as good paying
manufacturing jobs. Michael will work to keep taxes reasonable while continuing to be a full-service
community.
Michael is also a very strong supporter of public safety and education.
ix
Councilmember Anita Norton
Council member Anita Norton has resided in Arizona most of her life and has a
background in sales management and law enforcement. She moved from Peoria to
El Mirage in 2004. Council member Norton has served on the City Council since
being appointed to fill a vacancy in November of 2017, and then was elected in
August 2018. Anita has been a champion supporter of public safety, helping to
bring about positive and progressive changes in our Police and Fire Departments.
Council member Norton is a member of the MAG Regional Domestic Violence
Council and an alternate to the Community Development Advisory Committee of
Maricopa County Human Services Division (CDAC), which has brought in
millions of Federal dollars for City improvements.
While serving with the Phoenix Police Department, Anita received a
commendation for her investigative ability and recognition for composure in
particularly high stress situations. Her confidence, fearlessness, and thoroughness resulted in a high number of
solved cases.
A certified riding instructor for western and English horsemanship, as well as an instructor for riders with
disabilities, for the last 18 years, Anita has had a positive impact on the lives of hundreds of students helping
them to grow in confidence and helping them to overcome fears while learning to ride.
After concerns were raised regarding a major incident involving local teens, Anita established El Mirage Cares,
a program the City provides to inform families and local residents about the many dangers and obstacles that
challenge the health and welfare of our young children, teens, and adults through free forums open to the public.
With the involvement of members of the Maricopa County Attorney’s office and other professionals, as well as
the participation of the Dysart Unified School District, some of the topics covered thus far have included the
dangers of drugs and vaping, teen dating and domestic violence, suicide prevention and awareness, sex
trafficking, and bullying and depression. Our goal in this program is to save lives and promote healthy families.
Anita is thankful for the opportunity to serve the citizens of El Mirage and to be part of a growing City with the
goal of enhancing the lives of all who live, work in, and visit our great community.
Councilman David Shapera
Councilmember David M. Shapera was recently re-elected to a fourth four-year
term on the El Mirage City Council. He was a past member and Chairperson of
the El Mirage Planning and Zoning Commission. He has more than 46 years in
elected and appointed positions in government.
He and his wife of 44 years, Linda, moved to El Mirage in 2002. They have four
adult children, Dr. Daniel Shapera, Rikki Castro, Charles Shapera and Kristy
Reid. They have eight grandchildren.
David is a retired Connecticut police officer and was a corporate security and
safety executive. He was a Nevada police officer and a Clark County medical
examiner investigator. He taught high school in Clark County. He also taught for
the Dysart Unified School District and recently retired.
He is a 42-year member of the Benevolent and Protective Order of Elks (BPOE) and a lifetime member of the
Italian Social Club in Connecticut. During his terms on the El Mirage City Council he initiated numerous items
to make the city an enjoyable and affordable place to live.
x
Councilmember Donna Winston
Donna is a native Arizonan and grew up on the west side. She graduated from
ASU, Magna Cum Laude and double majored in Criminal Psychology and
Communication. She is married to Dr. Joshua Winston, DVM, has four children,
two granddaughters and a grandson. She bought her first brand new home in
Rancho El Mirage and has lived here for 20 years.
Donna has worked for Maricopa Community Colleges since 1996 and is currently
a Senior Administrative Assistant at the District Office. Along with her duties
there, she has been an employee advocate leader for the last 20 years which
included writing employee policy along with helping Maricopa Community
College employees.
Through this advocacy work for employees, Donna was asked to start the public
employee sector of AZ Conference of Police and Sherriff (AZCOPS), called
“Maricopa Employees”. She is currently the President of this non-profit group and proudly leads her board by
navigating public employees through processes and policies of their organization.
Donna and her husband Dr. Winston own two animal hospitals, in Sun City West and in Glendale. Their two
eldest sons are Veterans in the U.S. Military and are very dedicated to military personnel and their families.
Because of this, they do not charge office visit fees at either of the animal hospitals. Donna is also a wedding
planner and owns her business “By Invitation Only”.
Donna believes in giving back to her community and has been extremely involved in volunteerism since she
was a very young girl. She was the Family Readiness Group Leader for almost five years for her youngest son’s
Army Battalion. She served on the Executive Board of “The Single Mom Foundation” and taught a ten week
course called “The Road to Self Reliance”. She currently sits on the Executive Board of “Don’t Leave Me.org”
which started off as a civic engagement project for college students which brings awareness to the dangers of
leaving pets in hot cars.
One of Donna’s goals for the City of El Mirage is to partner with not only our local businesses but with our
sister cities around us to build a stronger economy throughout our community. She would like to utilize these
connections to support Education, Police and Fire in our own neighborhoods to secure a safer, better future for
El Mirage citizens.
LIST OF APPOINTED CITY OFFICIALS
City Manager – J. Crystal Dyches
City Attorney – Pierce Coleman PLLC
City Clerk – Sharon Antes
City Magistrate – Monte Morgan
xi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Mirage
Arizona
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
xii
FINANCIAL SECTION
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1
Independent Auditors’ Report
The Honorable Mayor and
City Council
El Mirage, Arizona
Report on the Financial Statements
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 El Mirage,
Arizona, as of and for the fiscal year ended June 30, 2020, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
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.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements 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 entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
2
Opinions
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 El Mirage, Arizona, as of June 30, 2020, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of the proportionate share of the net pension/OPEB liability, the
schedule of changes in the net pension/OPEB liability and related ratios, the schedule of pension/OPEB
contributions, and budgetary comparison information as listed in the table of contents be presented to
supplement the basic financial statements. Such information, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of El Mirage, Arizona’s basic financial statements. The introductory section,
supplementary budgetary comparison information for major funds, combining nonmajor fund financial
statements, nonmajor fund budget and actual schedules, and statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The supplementary budgetary comparison information for major funds, combining nonmajor fund
financial statements, and nonmajor fund budget and actual schedules were derived from and relate
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 supplementary
budgetary comparison information for major funds, combining nonmajor fund financial statements and
nonmajor fund budget and actual schedules are fairly stated in all material respects in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 20,
2020 on our consideration of the City of El Mirage, 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 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 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 El Mirage,
Arizona’s internal control over financial reporting and compliance.
HintonBurdick, PLLC
Gilbert, Arizona
October 20, 2020
4
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5
MANAGEMENT’S DICUSSION AND ANALYSIS
(Required Supplementary Information)
6
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CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
7
As management of the City of El Mirage, Arizona (City), we offer readers of the City’s
financial statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended June 30, 2020. The management’s discussion and analysis is presented as
required supplementary information to supplement the basic financial statements. We encourage
readers to consider the information presented here in conjunction with additional information that
we have furnished in our letter of transmittal, which can be found in the introductory section of
this report.
FINANCIAL HIGHLIGHTS
The City’s total net position of governmental activities increased $12.2 million to $93.1 million
and business-type activities increased $3.3 million to $58.3 million representing an increase
of 15 percent and 6 percent, respectively. The total net position is $151.4 million.
General revenues before transfers from governmental activities accounted for $27.2 million
in revenue, or 71 percent of all revenues from governmental activities. Program specific
revenues in the form of charges for services and grants and contributions accounted for $11.2
million or 29 percent of total governmental activities revenues. The City had $16.7 million of
program revenues and $0.3 million in general revenues related to business-type activities.
The City had $29.4 million in expenses related to governmental activities, an increase of 6
percent from the prior fiscal year. The City had $9.8 million in expenses related to business-
type activities, an increase of 5 percent from the prior fiscal year.
Among major funds, the General Fund had $27.8 million in revenues, which primarily
consisted of taxes and intergovernmental revenues. The total expenditures of the General Fund
were $21.9 million. The General Fund’s fund balance decreased from $33.5 million to $32.2
million, due primarily to transfers to other funds.
The Special Projects (Special Revenue) Fund had $3.3 million in revenues. The total
expenditures of the fund were $3.2 million. The Special Projects Fund’s fund balance
increased from $43,478 to $0.2 million, at the end of the current fiscal year due to
Intergovernmental revenue.
The Streets (Capital Projects) Fund had $2.3 million in revenues. The total expenditures of
the Streets Fund were $8.6 million. The Streets Fund’s fund balance increased from $10.8
million to $14.5 million, at the end of the current fiscal year due to increases in Transfers in.
The Water Fund net position decreased $0.1 million due primarily to a Prior period adjustment.
The Water Fund had operating revenues of $9.1 million and operating expenses of $5.7
million. The Water Fund is in the process of establishing council adopted reserve funds.
The Sewer Fund net position increased $3.2 million. Operating expenses of $2.7 million
were exceeded by operating revenues of $3.3 million. The Sewer Fund is in the process of
establishing council adopted reserve funds
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
8
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the
financial statements are: (1) Government-wide financial statements which include the Statement
of Net Position and the Statement of Activities. These statements provide information about the
activities of the City as a whole. (2) Fund financial statements tell how these services were financed
in the short term as well as what remains for future spending. Fund financial statements also report
the City’s operations in more detail than the government-wide statements by providing information
about the City’s most significant funds. (3) Notes to the financial statements.
Reporting the City as a Whole
The Statement of Net Position and the Statement of Activities (Government-Wide)
A frequently asked question regarding the City’s financial health is whether the year’s activities
contributed positively to the overall financial well-being. The Statement of Net Position and the
Statement of Activities report information about the City as a whole and about its activities in a
way that helps answer this question. These statements include all assets and liabilities using the
accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year’s revenues and expenses are taken into account regardless of
when cash is received or paid.
These two statements report the City’s net position and changes in them. Net position, the
difference between assets and liabilities, are one way to measure the City’s financial health, or
financial position. Over time, increases or decreases in net position are an indicator of whether the
financial health is improving or deteriorating. However, it is important to consider other non-
financial factors such as changes in the City’s property tax base or condition of the City’s roads to
accurately assess the overall health of the City.
The Statement of Net Position and the Statement of Activities present information about the
following:
Government activities – All of the City’s basic services are considered to be governmental
activities, including general government, public safety, public works/streets, culture and
recreation, and interest on long-term debt. Sales tax, property tax, federal grants,
intergovernmental revenues and charges for services finance most of these activities.
Proprietary activities/Business type activities – The City charges a fee to customers that is
intended to cover all of the cost of the services provided for water, sewer and sanitation.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
9
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds—not
the City as a whole. Some funds are required to be established by State law and by bond covenants.
However, management establishes many other funds which aid in the management of money for
particular purposes or to meet legal responsibilities associated with the usage of certain taxes,
grants, and other money. The City’s two major kinds of funds, governmental and proprietary, use
different accounting approaches as explained below.
Governmental funds – Most of the City’s basic services are reported in governmental funds.
Governmental funds focus on how resources flow in and out with the balances remaining at
year-end that are available for spending. These funds are reported using an accounting method
called the modified accrual accounting method, which measures cash and all other financial
assets that can readily be converted to cash. The governmental fund statements provide a
detailed short-term view of the City’s general government operations and the basic services it
provides. Government fund information shows whether there are more or fewer financial
resources that can be spent in the near future to finance the City’s programs. The relationship
(or differences) between governmental activities (reported in the Statement of Net Position and
the Statement of Activities) and governmental funds is described in the reconciliation included
with the Basic Financial Statements and in footnote 2.
Proprietary funds – When the City charges customers for the services it provides, these
services are generally reported in proprietary funds. Proprietary funds are reported on the
accrual basis of accounting in the same way that all activities are reported in the Statement of
Net Position and the Statement of Activities.
Notes to the financial statements – The notes provide additional information that is essential
to a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found immediately following the
basic financial statements.
Other information – In addition to the basic financial statements and accompanying notes,
this report also presents certain required supplementary information concerning the City’s
budget process and pension plan. The City adopts an annual expenditure budget for all
governmental funds. A schedule of revenues, expenditures and changes in fund balances –
budget and actual has been provided for the General Fund as required supplementary
information. Schedules for the pension plans have been provided as required supplementary
information.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position.
In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows
by $151.4 million at the end of the current fiscal year.
The following table presents a summary of the City’s net position for the fiscal
years ended June 30, 2020 and June 30, 2019.
6/30/2020
6/30/2019
6/30/2020
6/30/2019
6/30/2020
6/30/2019
Current and other assets
51,924,927
$
49,374,622
$
33,787,890
$
30,650,969
$
85,712,817
$
80,025,591
$
Capital assets
78,706,329
79,973,787
39,040,172
39,313,927
117,746,501
119,287,714
Total assets
130,631,256
129,348,409
72,828,062
69,964,896
203,459,318
199,313,305
Deferred outflows of resources
6,760,679
7,317,901
296,925
374,701
7,057,604
7,692,602
Long-term liabilities outstanding
40,490,166
50,893,599
12,113,427
12,187,340
52,603,593
63,080,939
Other liabilities
1,492,390
2,011,476
2,519,174
2,825,508
4,011,564
4,836,984
Total liabilities
41,982,556
52,905,075
14,632,601
15,012,848
56,615,157
67,917,923
Deferred inflows of resources
2,267,789
2,863,883
188,721
331,315
2,456,510
3,195,198
Net position:
Net investment in capital assets
56,667,278
46,624,411
29,392,545
29,457,397
86,059,823
76,081,808
Restricted
16,923,724
12,133,608
-
-
16,923,724
12,133,608
Unrestricted
19,550,588
22,139,333
28,911,120
25,538,037
48,461,708
47,677,370
Total net position
93,141,590
$
80,897,352
$
58,303,665
$
54,995,434
$
151,445,255
$
135,892,786
$
Total
Governmental
activities
activities
Business-type
The largest portion of the City’s net position reflects its investment in capital assets (e.g., land,
land improvements; buildings and improvements; sewer plant; water mains and lines; sewer
collection system; infrastructure; vehicles, machinery, and equipment; and construction in
progress), less any related outstanding debt used to acquire those assets. The City uses these
capital assets to provide services to its citizens; consequently, these assets are not available for
future spending. Although the City’s investment in its capital assets is reported net of related
outstanding 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 used to liquidate these liabilities.
See Note 5, Capital Assets, for more information about the City’s capital assets.
The City’s financial position is the product of several financial transactions including the net results
of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets,
and the depreciation of capital assets. The following are significant current year transactions that
had an impact on the Statement of Net Position:
The addition of $2.5 million in governmental activities current and other assets, primarily
Receivables (net of allowance).
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
11
Changes in Net Position
The City’s programs include: General Government, Public Safety, Public Works/Streets, Culture
and Recreation, Water, Sewer, and Sanitation. Each programs’ net cost (total cost less revenues
generated by the activities) is presented below.
6/30/2020
6/30/2019
6/30/2020
6/30/2019
6/30/2020
6/30/2019
Revenues:
Program revenues:
Charges for services
5,289,299
$
3,410,037
$
13,946,169
$
14,145,583
$
19,235,468
$
17,555,620
$
Operating grants and
contributions
5,939,482
3,314,161
-
-
5,939,482
3,314,161
Capital grants and
contributions
15,530
5,137,683
2,709,000
887,861
2,724,530
6,025,544
General revenues:
Property taxes
4,169,021
4,341,108
-
-
4,169,021
4,341,108
City sales taxes
11,673,068
8,538,740
-
-
11,673,068
8,538,740
Franchise taxes
696,912
742,741
696,912
742,741
Unrestricted state revenues
9,811,695
9,330,082
-
-
9,811,695
9,330,082
Investment income
798,697
1,433,459
305,058
43,681
1,103,755
1,477,140
Total revenues
38,393,704
36,248,011
16,960,227
15,077,125
55,353,931
51,325,136
Expenses:
General government
8,185,259
7,193,712
-
-
8,185,259
7,193,712
Public safety
15,777,067
13,367,955
-
-
15,777,067
13,367,955
Highways and streets
4,465,392
4,464,599
-
-
4,465,392
4,464,599
Culture and recreation
443,385
1,265,719
-
-
443,385
1,265,719
Interest on long-term debt
483,363
1,299,795
-
-
483,363
1,299,795
Water
-
-
6,005,567
5,711,196
6,005,567
5,711,196
Sewer
-
-
2,684,309
2,482,493
2,684,309
2,482,493
Sanitation
-
-
1,075,446
1,086,988
1,075,446
1,086,988
Total expenses
29,354,466
27,591,780
9,765,322
9,280,677
39,119,788
36,872,457
Increase (decrease) in net position
before transfers
9,039,238
8,656,231
7,194,905
5,796,448
16,234,143
14,452,679
Transfers
3,205,000
2,010,500
(3,205,000)
(2,010,500)
-
-
Change in net position
12,244,238
10,666,731
3,989,905
3,785,948
16,234,143
14,452,679
Net position, beginning
80,897,352
70,230,621
54,995,434
51,209,486
135,892,786
121,440,107
Prior period adjustment
-
-
(681,674)
-
(681,674)
-
Net position, ending
93,141,590
$
80,897,352
$
58,303,665
$
54,995,434
$
151,445,255
$
135,892,786
$
Total
activities
activities
Governmental
Business-type
Capital grants and contributions related to governmental activities decreased by $5.1
million related to one-time reimbursements from Maricopa Association of Governments
for the construction of El Mirage Road in the prior year.
Operating grants and contributions related to governmental activities increased $2.6
million due to Federal funding related to COVID 19.
Governmental activities expense increased $1.8 million or 6 percent primarily due to
increases in public safety.
Business-type activities revenues increased by $1.9 million or 12 percent primarily due
to sewer fund capital grants and contributions related to treatment plant improvements.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
12
Governmental and Business-type activities
The following table presents the cost of the City’s functional activities. The table also shows each
function’s net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden
that was placed on the State and City’s taxpayers by each of these functions.
Total
Net (Expense)/
Total
Net (Expense)/
Expenses
Revenue
Expenses
Revenue
Governmental Activities
General government
8,185,259
$
(5,997,918)
$
7,193,712
$
(4,821,601)
$
Public safety
15,777,067
(11,466,214)
13,367,955
(11,557,365)
Highways and streets
4,465,392
223,239
4,464,599
3,143,107
Culture and recreation
443,385
(385,899)
1,265,719
(1,194,245)
Interest on long-term debt
483,363
(483,363)
1,299,795
(1,299,795)
Total
29,354,466
$
(18,110,155)
$
27,591,780
$
(15,729,899)
$
Business-type Activities
Water
6,005,567
$
3,049,894
$
5,711,196
$
4,422,196
$
Sewer
2,684,309
3,289,183
2,482,493
815,995
Sanitation
1,075,446
550,770
1,086,988
514,576
Total
9,765,322
$
6,889,847
$
9,280,677
$
5,752,767
$
Year ended June 30, 2020
Year ended June 30, 2019
Federal and State grants and charges for services subsidized certain governmental
programs with revenues of $11.2 million.
Net cost of governmental activities of $18.1 million was financed by general revenues,
which are primarily property tax, local sales taxes, and unrestricted revenues totaling
$27.2 million.
The cost of providing all Proprietary (Business Type) activities this year was $9.8
million. The amounts paid by users of the system were $13.9 million. Interest earnings
and capital grants and contributions were $3.0 million.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
13
Financial Analysis of the Government’s Funds
As noted earlier, the City of El Mirage uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds – The focus of the City of El Mirage’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of El Mirage’s financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available
for spending at the end of the fiscal year. See the Balance Sheet for Governmental Funds statement
for information about components of the fiscal year’s ending fund balance for governmental funds.
As of the end of the current fiscal year, the City of El Mirage’s governmental funds reported
combined ending fund balances of $50.2 million, an increase of $3.0 million or 6 percent,
compared to the prior fiscal year. The change is primarily due to an increase in Intergovernmental
Receivables related to Federal COVID 19 funds.
Approximately 62 percent of the combined ending fund balances of $50.2 million, or $30.9
million, constitutes unassigned fund balance which is available for new spending at the
government’s discretion. The $30.9 million combined unassigned fund balance includes $8.0
million established as a General Fund reserve. The remaining combined fund balance is non-
spendable, restricted, committed or assigned in accordance with GASB 54.
The General Fund is the chief operating fund of the City of El Mirage. At the end of the current
fiscal year, unassigned fund balance in the General Fund was $30.9 million, while total General
Fund balance was $32.2 million. As a measure of the General Fund’s liquidity, it may be useful
to compare both unassigned fund balance and total fund balance to total General Fund
expenditures. The General Fund unassigned fund balance represents 141 percent of total General
Fund expenditures while total fund balance represents 147 percent of the same amount. During the
year the City of El Mirage’s General Fund balance decreased by $1.4 million. This decrease in
fund balance is primarily attributable to increased Transfers out.
The Special Projects (Special Revenue) Fund has a total fund balance of $0.2 million, all of which
is restricted for special projects and grants per state and federal directives.
The Streets (Capital Projects) Fund has a total fund balance of $14.5 million, all of which is
assigned for road and street construction and improvements. The construction of El Mirage Road,
Northern Parkway, and related debt were offset by Transfers in, resulting in a $3.8 million increase
in fund balance.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
14
General Fund Budgetary Highlights
Tax revenues have a positive variance of $3.4 million due to stronger than budgeted City sales tax
collections. Charges for services and Interest earning revenues each have a positive variance of
$0.2 million due to better than anticipated local construction activity. Total revenues have a
positive variance of 20 percent or $4.6 million. General Fund expenditures were $4.9 million or
19 percent less than budgeted with the most significant positive variances in the following areas:
In the General Government category, total spending was $1.4 million or 15 percent less
than budget. Most notable in this category was Non-departmental spending $0.4 million
less than budget due to Personnel savings.
In the Public Safety department, spending was $2.7 million or 20 percent less than budget
due primarily to personnel-related savings.
Capital Outlay spending was $1.0 million or 53 percent less than budget as major capital
projects were under construction but not complete and some vehicle purchases were
delayed.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the City are those assets that are used in performance of City functions
including land, construction in progress, system improvements, buildings, improvements,
machinery, vehicles, equipment and infrastructure/roads. Depreciation expense of $3.4 million on
capital assets is recognized in the Government-Wide financial statements. The following schedule
presents capital asset balances for the fiscal years ended June 30, 2020 and 2019.
06/30/20
06/30/19
06/30/20
06/30/19
Governmental
Governmental
Business-type
Business-type
Activities
Activities
Activities
Activities
Non-depreciable assets
10,543,552
$
10,064,994
$
1,437,239
$
1,942,339
$
Depreciable assets
96,472,198
94,795,741
78,560,383
75,788,722
Less: Accumulated depreciation
(28,309,421)
(24,886,948)
(40,957,450)
(38,417,134)
Total capital assets, net
78,706,329
$
79,973,787
$
39,040,172
$
39,313,927
$
The most significant increase in governmental capital assets $0.8 million is related to
infrastructure improvements.
The most significant increase in business type capital assets $1.9 million is related to water
mains and lines.
Additional information regarding the City’s capital assets can be found at Note 5.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2020
15
Long-Term Debt
At year-end, the City had $22.5 million in governmental-type bond debt, and $9.7 million in
business-type direct borrowing debt. The debt is a liability of the government and amounts to
approximately $899 per capita (population estimated at 35,753). During the current fiscal year,
the City’s total debt had a net decrease of $11.5 million. The following schedule presents
outstanding long-term debt for the fiscal years ended June 30, 2020 and 2019.
As of
As of
June 30, 2020
June 30, 2019
General obligation bonds
22,475,911
$
23,780,971
$
Revenue bonds
-
10,065,663
WIFA loans
9,665,210
9,821,366
Total
32,141,121
$
43,668,000
$
The Arizona Constitution and State Statues limit a municipality’s bonded debt capacity to certain
percentages of its net full cash assessed valuation and by the type of project to be constructed with
general obligation (GO) bonds. For projects involving water, wastewater, artificial lighting, parks,
open space, recreational facility improvements, streets, public safety, and fire and emergency
facilities, the City can issue GO bonds up to 20 percent of its net full cash assessed valuation. For
any other general-purpose improvements, the City may issue bonds up to 6 percent of its net full
cash assessed valuation. The City’s debt limit at year-end was $12.7 million in the 6 percent
capacity and $42.3 million in the 20 percent capacity. The City has $1.3 million of G.O. debt
applicable to the 6 percent limit and $20.9 million of debt applicable to the 20 percent limit.
Additional information regarding the City’s long-term debt can be found in Note 6.
NEXT YEAR’S BUDGET AND ECONOMIC FACTORS
The City of El Mirage is experiencing continued, steady economic growth and expects to see similar
growth in the coming fiscal year. The City’s proximity to Phoenix and major road and rail networks
provides tremendous opportunity for commercial growth.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the City’s finances and to show the City’s accountability for
the resources it receives. If you have questions about this report or need additional financial
information, contact the City’s Finance Department, City of El Mirage, 10000 N. El Mirage Road,
El Mirage, Arizona 85335.
16
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17
BASIC FINANCIAL STATEMENTS
18
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CITY OF EL MIRAGE, ARIZONA
Statement of Net Position
June 30, 2020
The accompanying notes are an integral part of the financial statements.
19
Governmental
Business-type
Activities
Activities
Total
Assets
Cash and cash equivalents
47,890,482
$
19,009,131
$
66,899,613
$
Receivables (net of allowance)
3,798,596
1,440,267
5,238,863
Prepaid items
89,069
9,709
98,778
Inventory
-
13,324,382
13,324,382
Net pension/OPEB asset
146,780
4,401
151,181
Capital assets (net of accumulated depreciation)
Land
9,701,487
921,620
10,623,107
Construction in progress
842,065
515,619
1,357,684
System improvements
-
33,144,184
33,144,184
Buildings
22,250,699
1,090,065
23,340,764
Improvements
1,227,315
1,090,582
2,317,897
Machinery, vehicles, and equipment
3,328,069
2,278,102
5,606,171
Infrastructure/Roads
41,356,694
-
41,356,694
Total assets
130,631,256
72,828,062
203,459,318
Deferred Outflows of Resources
Deferred outflows related to pensions/OPEB
6,323,819
279,342
6,603,161
Deferred charge on refunding
436,860
17,583
454,443
Total deferred outflows
6,760,679
296,925
7,057,604
Liabilities
Accounts payable and other current liabilities
1,323,584
2,384,772
3,708,356
Interest payable
-
134,402
134,402
Unearned revenues
82,907
-
82,907
Due to other governments
85,899
-
85,899
Noncurrent liabilities:
Due within one year
1,479,771
1,185,271
2,665,042
Due in more than one year
22,002,792
8,605,290
30,608,082
Net pension/OPEB liabilities
17,007,603
2,322,866
19,330,469
Total liabilities
41,982,556
14,632,601
56,615,157
Deferred Inflows of Resources
Deferred inflows related to pensions/OPEB
2,267,789
188,721
2,456,510
Net Position
Net investment in capital assets
56,667,278
29,392,545
86,059,823
Restricted for:
Debt service
479,261
-
479,261
Streets projects
16,001,947
-
16,001,947
Court and police programs
226,002
-
226,002
Other purposes
216,514
-
216,514
Unrestricted
19,550,588
28,911,120
48,461,708
Total net position
93,141,590
$
58,303,665
$
151,445,255
$
CITY OF EL MIRAGE, ARIZONA
Statement of Activities
For the Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
20
Functions/Programs
Expenses
Governmental activities:
General government
8,185,259
$
2,183,952
$
3,389
$
-
$
Public safety
15,777,067
976,983
3,318,340
15,530
Highways and streets
4,465,392
2,070,878
2,617,753
-
Culture and recreation
443,385
57,486
-
-
Interest on long-term debt
483,363
-
-
-
Total governmental activities
29,354,466
5,289,299
5,939,482
15,530
Business-type activities:
Water
6,005,567
9,055,461
-
-
Sewer
2,684,309
3,264,492
-
2,709,000
Sanitation
1,075,446
1,626,216
-
-
Total business-type activities
9,765,322
13,946,169
-
2,709,000
Total primary government
39,119,788
$
19,235,468
$
5,939,482
$
2,724,530
$
General Revenues:
Taxes:
City sales tax
Franchise tax
Property tax, levied for general purposes
Property tax, levied for debt purposes
Unrestricted state revenues
Unrestricted investment earnings
Transfers
Total general revenues & transfers
Change in net position
Net position - beginning
Prior period adjustment
Net position - ending
Program Revenues
Charges for
Services
Operating
Grants &
Contributions
Capital
Grants &
Contributions
21
Governmental
Business-type
Activities
Activities
Total
(5,997,918)
$
-
$
(5,997,918)
$
(11,466,214)
-
(11,466,214)
223,239
-
223,239
(385,899)
-
(385,899)
(483,363)
-
(483,363)
(18,110,155)
-
(18,110,155)
-
3,049,894
3,049,894
-
3,289,183
3,289,183
-
550,770
550,770
-
6,889,847
6,889,847
11,673,068
-
11,673,068
696,912
-
696,912
2,202,414
-
2,202,414
1,966,607
-
1,966,607
9,811,695
-
9,811,695
798,697
305,058
1,103,755
3,205,000
(3,205,000)
-
30,354,393
(2,899,942)
27,454,451
12,244,238
3,989,905
16,234,143
80,897,352
54,995,434
135,892,786
-
(681,674)
(681,674)
93,141,590
$
58,303,665
$
151,445,255
$
Net (Expense) Revenue and
Changes in Net Position
CITY OF EL MIRAGE, ARIZONA
Balance Sheet
Governmental Funds
June 30, 2020
The accompanying notes are an integral part of the financial statements.
22
Non-major
Total
Special Projects
Streets
Governmental
Governmental
General
(Special Revenue)
(Capital Projects)
Funds
Funds
ASSETS
Cash and cash equivalents
30,188,305
$
-
$
14,555,110
$
3,147,067
$
47,890,482
$
Receivables:
Taxes
75,688
-
-
69,122
144,810
Other
169,681
475
-
-
170,156
Intergovernmental
521,781
2,781,568
-
180,281
3,483,630
Due from other funds
2,438,732
-
-
5,930
2,444,662
Prepaid items
89,069
-
-
-
89,069
Total assets
33,483,256
$
2,782,043
$
14,555,110
$
3,402,400
$
54,222,809
$
LIABILITIES
Accounts payable
380,874
$
126,446
$
6,992
$
77,134
$
591,446
$
Accrued wages and benefits
720,886
-
-
11,052
731,938
Deposits held
200
-
-
-
200
Due to other governments
79,754
6,145
-
-
85,899
Due to other funds
5,930
2,432,938
-
5,794
2,444,662
Unearned revenue
82,907
-
-
-
82,907
Total liabilities
1,270,551
2,565,529
6,992
93,980
3,937,052
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes
47,531
-
-
45,699
93,230
Total deferred inflows of resources
47,531
-
-
45,699
93,230
FUND BALANCES
Nonspendable:
Prepaid items
89,069
-
-
-
89,069
Restricted:
Public safety
-
-
-
226,002
226,002
Public works/streets
-
-
14,548,118
1,453,829
16,001,947
Special projects
-
216,514
-
-
216,514
Debt service
-
-
-
479,261
479,261
Committed:
Court and police programs
-
-
-
1,103,629
1,103,629
Other purposes
720,886
-
-
-
720,886
Assigned:
Court and police programs
426,359
-
-
-
426,359
Unassigned
30,928,860
-
-
-
30,928,860
Total fund balances
32,165,174
216,514
14,548,118
3,262,721
50,192,527
Total liabilities, deferred inflows of resources,
and fund balances
33,483,256
$
2,782,043
$
14,555,110
$
3,402,400
$
54,222,809
$
CITY OF EL MIRAGE, ARIZONA
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
June 30, 2020
The accompanying notes are an integral part of the financial statements.
23
Total governmental fund balances
50,192,527
$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Governmental capital assets
107,015,750
$
Less accumulated depreciation
(28,309,421)
78,706,329
Net OPEB asset is not an available resource and, therefore
is not reported in the funds.
146,780
Some liabilities, including bonds payable and capital leases,
are not due and payable in the current period and therefore are
not reported in the funds.
Compensated absences
(1,006,652)
$
Net pension/OPEB liability
(17,007,603)
Bonds payable
(22,475,911)
(40,490,166)
Property tax receivables are not available to pay for current period
expenditures and, therefore, are reported as unavailable
revenues in the funds
93,230
Deferred items related to the net cost of issuance of bonds
are amortized over the life of the associated bond issue
in the government-wide statements but not reported in the funds
436,860
Deferred outflows and inflows of resources related to pensions
are applicable to future reporting periods and, therefore, are
not reported in the funds.
Deferred outflows
6,323,819
$
Deferred inflows
(2,267,789)
4,056,030
Total net position of governmental activities
93,141,590
$
CITY OF EL MIRAGE, ARIZONA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
24
Non-major
Total
Special Projects
Streets
Governmental
Governmental
REVENUES
General
(Special Revenue) (Capital Projects)
Funds
Funds
Property taxes
2,216,903
$
-
$
-
$
1,975,585
$
4,192,488
$
City sales taxes
11,673,068
-
-
-
11,673,068
Franchise taxes
696,912
-
-
-
696,912
Licenses, permits and fees
837,063
-
-
-
837,063
Intergovernmental revenue
9,857,849
3,287,716
-
2,617,753
15,763,318
Charges for services
277,748
-
-
-
277,748
Fees
1,040,871
-
-
-
1,040,871
Fines and forfeitures
479,266
-
-
385,703
864,969
Investment earnings
515,501
1,497
230,608
51,091
798,697
Other revenues
201,077
-
2,070,878
82
2,272,037
Total revenues
27,796,258
3,289,213
2,301,486
5,030,214
38,417,171
EXPENDITURES
Current:
General government
7,386,048
13,829
-
-
7,399,877
Public safety
11,197,805
3,017,348
-
180,684
14,395,837
Public works/streets
-
-
500,000
2,204,575
2,704,575
Capital outlay
845,749
185,000
861,995
460,772
2,353,516
Debt service
Principal
2,308,750
-
6,926,250
1,190,000
10,425,000
Interest and fiscal charges
114,100
-
342,300
912,288
1,368,688
Total expenditures
21,852,452
3,216,177
8,630,545
4,948,319
38,647,493
Excess (deficiency) of revenues
over (under) expenditures
5,943,806
73,036
(6,329,059)
81,895
(230,322)
OTHER FINANCING
SOURCES (USES)
Sale of assets
31,307
-
-
-
31,307
Transfers out
(11,095,500)
-
-
(638,642)
(11,734,142)
Transfers in
3,768,642
100,000
10,114,000
956,500
14,939,142
Total other financing
sources (uses)
(7,295,551)
100,000
10,114,000
317,858
3,236,307
Net change in fund balances
(1,351,745)
173,036
3,784,941
399,753
3,005,985
Fund balances, beginning of year
33,516,919
43,478
10,763,177
2,862,968
47,186,542
Fund balances, end of year
32,165,174
$
216,514
$
14,548,118
$
3,262,721
$
50,192,527
$
CITY OF EL MIRAGE, ARIZONA
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
25
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances - total governmental funds
3,005,985
$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the costs of those assets are allocated over their
estimated useful lives and reported as depreciation expense. This is the
difference between depreciation expense and capital outlay in the current period.
Capital outlay
2,353,516
$
Depreciation expense
(3,581,550)
(1,228,034)
The net effect of various miscellaneous transactions involving capital assets
(i.e., disposals) is to decrease net position.
(39,425)
Property tax revenues in the Statement of Activities that do not provide
current financial resources are not reported as revenues in the funds.
(23,467)
Governmental funds report the effect of premiums, discounts, and other similar
items when debt is first issued, whereas these items are deferred and amortized
over the term of the long-term debt in the Statement of Activities.
Amortization of bond premium
945,723
$
Amortization of deferred charge on refunding
(60,398)
885,325
Repayment of long-term debt (e.g., bonds, leases) principal is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the
Statement of Net Position.
Bond principal retirement
10,425,000
$
10,425,000
Pension/OPEB contributions are reported as expenditures in the governmental
funds when made. However, they are reported as deferred outflows of
resources in the Statement of Net Position because the net pension/OPEB
liability is measured a year before the City's report date. Pension/OPEB
expense, which is the change in the net pension liability/OPEB adjusted
for changes in deferred outflows and inflows of resources related to
pensions/OPEB, is reported in the Statement of Activities.
Pension/OPEB contributions
2,386,769
$
Pension/OPEB expense
(2,886,344)
(499,575)
Compensated absences expenses reported in the Statement of Activities do not
(281,571)
Change in net position of governmental activities
12,244,238
$
require the use of current financial resources and therefore are not reported as
expenditures in governmental funds.
CITY OF EL MIRAGE, ARIZONA
Statement of Net Position
Proprietary Funds
June 30, 2020
The accompanying notes are an integral part of the financial statements.
26
(Nonmajor)
ASSETS
Water
Sewer
Sanitation
Totals
Current Assets:
Cash
8,872,264
$
8,844,201
$
1,292,666
$
19,009,131
$
Receivables (net of allowance)
1,004,656
302,026
133,585
1,440,267
Prepaid items
9,709
-
-
9,709
Inventories
13,324,382
-
-
13,324,382
Total current assets
23,211,011
9,146,227
1,426,251
33,783,489
Noncurrent Assets:
Net pension/OPEB asset
3,252
1,149
-
4,401
Land
129,768
791,852
-
921,620
Construction in progress
515,619
-
-
515,619
System improvements
36,709,604
29,922,941
-
66,632,545
Land improvements
3,746,656
1,807,671
-
5,554,327
Buildings and improvements
911,946
781,311
-
1,693,257
Equipment and vehicles
2,254,343
2,425,911
-
4,680,254
Accumulated depreciation
(23,898,180)
(17,059,270)
-
(40,957,450)
Total noncurrent assets
20,373,008
18,671,565
-
39,044,573
Total Assets
43,584,019
27,817,792
1,426,251
72,828,062
Deferred Outflows of Resources
Deferred charge on refunding
17,583
-
-
17,583
Deferred outflows related to pensions/OPEB
206,395
72,947
-
279,342
Total deferred outflows of resources
223,978
72,947
-
296,925
LIABILITIES
Current liabilities:
Accounts payable
215,683
55,098
83,081
353,862
Accrued wages and benefits
54,810
24,400
-
79,210
Compensated absences
20,843
10,259
-
31,102
Interest payable
129,246
5,156
-
134,402
Customer deposits
1,951,700
-
-
1,951,700
Loans payable - current portion
1,130,291
23,878
-
1,154,169
Total current liabilities
3,502,573
118,791
83,081
3,704,445
Noncurrent liabilities:
Compensated absences
63,160
31,089
-
94,249
Net pension/OPEB liabilities
1,716,273
606,593
-
2,322,866
Loans payable, net of
current portion
8,166,603
344,438
-
8,511,041
Total noncurrent liabilities
9,946,036
982,120
-
10,928,156
Total liabilities
13,448,609
1,100,911
83,081
14,632,601
Deferred Inflows of Resources
Deferred inflows related to pensions/OPEB
139,438
49,283
-
188,721
NET POSITION
Net investment in capital assets
11,090,445
18,302,100
-
29,392,545
Unrestricted
19,129,505
8,438,445
1,343,170
28,911,120
Total net position
30,219,950
$
26,740,545
$
1,343,170
$
58,303,665
$
Business-type Activities - Enterprise Funds
CITY OF EL MIRAGE, ARIZONA
Statement Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
27
(Nonmajor)
Operating Revenues
Water
Sewer
Sanitation
Totals
Charges for services
8,932,478
$
3,264,372
$
1,626,216
$
13,823,066
$
Other revenues
122,983
120
-
123,103
Total operating revenues
9,055,461
3,264,492
1,626,216
13,946,169
Operating Expenses
Cost of sales and services
2,539,231
981,519
1,045,446
4,566,196
Salaries and benefits
1,729,002
600,965
30,000
2,359,967
Depreciation
1,465,203
1,091,512
-
2,556,715
Total operating expenses
5,733,436
2,673,996
1,075,446
9,482,878
Operating income
3,322,025
590,496
550,770
4,463,291
Non-operating Revenues (Expenses)
Interest income
205,134
82,441
17,483
305,058
Interest expense and fiscal charges
(272,131)
(10,313)
-
(282,444)
Total non-operating
revenue (expense)
(66,997)
72,128
17,483
22,614
Income (loss) before contributions
and transfers
3,255,028
662,624
568,253
4,485,905
Capital contributions
-
2,709,000
-
2,709,000
Transfers out
(2,820,000)
(1,582,000)
(357,000)
(4,759,000)
Transfers in
160,000
1,394,000
-
1,554,000
Change in net position
595,028
3,183,624
211,253
3,989,905
Total net position, beginning of year
30,306,596
23,556,921
1,131,917
54,995,434
Prior period adjustment
(681,674)
-
-
(681,674)
Total net position, end of year
30,219,950
$
26,740,545
$
1,343,170
$
58,303,665
$
Business-type Activities - Enterprise Funds
CITY OF EL MIRAGE, ARIZONA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2020
The accompanying notes are an integral part of the financial statements.
28
(Nonmajor)
Water
Sewer
Sanitation
Totals
Cash Flows From Operating Activities:
Cash received from customers, service fees
9,793,598
$
3,248,997
$
1,617,947
$
14,660,542
$
Cash received from customers, other
183,588
120
-
183,708
Cash paid to suppliers
(10,783,574)
(985,822)
(1,040,890)
(12,810,286)
Cash paid to employees
(1,752,151)
(583,166)
(30,000)
(2,365,317)
Cash flows from operating activities
(2,558,539)
1,680,129
547,057
(331,353)
Cash Flows From Noncapital
Financing Activities:
Transfers to other funds
(2,820,000)
(1,582,000)
(357,000)
(4,759,000)
Transfers from other funds
160,000
1,394,000
-
1,554,000
Cash flows from noncapital
financing activities
(2,660,000)
(188,000)
(357,000)
(3,205,000)
Cash Flows From Capital and Related
Financing Activities:
Purchase of capital assets
(1,612,795)
(729,693)
-
(2,342,488)
Proceeds from capital contributions and grants
-
2,709,000
-
2,709,000
Proceeds from loans
965,809
-
-
965,809
Principal paid on loans
(1,098,738)
(23,228)
-
(1,121,966)
Interest paid
(260,135)
(10,639)
-
(270,774)
Cash flows from capital and related
financing activities
(2,005,859)
1,945,440
-
(60,419)
Cash Flows From Investing Activities:
Interest on investments
205,134
82,441
17,483
305,058
Net change in cash and cash equivalents
(7,019,264)
3,520,010
207,540
(3,291,714)
Cash and cash equivalents, including
temporarily restricted cash, beginning of year
15,891,528
5,324,191
1,085,126
22,300,845
Cash and cash equivalents, including
temporarily restricted cash, end of year
8,872,264
$
8,844,201
$
1,292,666
$
19,009,131
$
Reconciliation of operating income to net
cash flows from operating activities:
Net operating income
3,322,025
$
590,496
$
550,770
$
4,463,291
$
Adjustments to reconcile operating income
to net cash flows from operating activities:
Depreciation
1,465,203
1,091,512
-
2,556,715
Pension/OPEB expense
107,385
49,196
-
156,581
Employer pension/OPEB contributions
(159,860)
(56,500)
-
(216,360)
Changes in operating assets and liabilities:
(Increase) decrease in receivables
861,120
(15,375)
(8,269)
837,476
(Increase) decrease in prepaids
(9,709)
-
-
(9,709)
(Increase) decrease in inventory
(7,939,612)
-
-
(7,939,612)
Increase (decrease) in accounts payable
(295,022)
(4,303)
4,556
(294,769)
(54,677)
(16,245)
-
(70,922)
Increase (decrease) in compensated absences
84,003
41,348
-
125,351
Increase (decrease) in customer deposits
60,605
-
-
60,605
Net cash flows from operating activities
(2,558,539)
$
1,680,129
$
547,057
$
(331,353)
$
Business-type Activities - Enterprise Funds
Increase (decrease) in accrued payroll and
employee benefits
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
29
Note 1.
Summary of Significant Accounting Policies
The financial statements of the City of El Mirage, Arizona have been prepared in conformity with
accounting principles generally accepted in the United States of America as applied to government units.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
Description of government-wide financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. All fiduciary activities are reported only in the fund financial statements. Governmental
activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange
transactions, are reported separately from business-type activities, which rely to a significant extent on fees
and charges to external customers for support. Likewise, when applicable, the primary government is
reported separately from certain legally separate component units for which the primary government is
financially accountable.
Reporting entity
The City is a municipal entity governed by an elected mayor and council. As required by accounting
principles generally accepted in the United States of America, these financial statements present the City
and its component units, entities for which the City is considered to be financially accountable. Blended
component units, although legally separate entities, are, in substance, part of the City’s operations and so
data from these units are combined with data of the City, the primary government.
The financial reporting entity consists of a primary government and its component units. A component
unit is a legally separate entity that must be included in the reporting entity in conformity with generally
accepted accounting principles. The City is a primary government that has a separately elected governing
body, is legally separate, and is fiscally independent of other state or local governments. Furthermore,
component units combined with the City for financial statement presentation purposes, and the City, are
not included in any other governmental reporting entity. Consequently, the City’s financial statements
include the funds of those organizational entities for which its elected governing body is financially
accountable.
Basis of presentation – government-wide financial statements
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental activities column incorporates data from governmental funds and internal service funds,
while business-type activities incorporate data from the City’s enterprise funds. Separate financial
statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government-wide financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the government’s water and wastewater
functions and various other functions of the government. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
30
Note 1.
Summary of Significant Accounting Policies, Continued
Basis of presentation – fund financial statements
The fund financial statements provide information about the City’s funds, including its fiduciary funds and
blended component units. Separate statements for each fund category—governmental, proprietary, and
fiduciary—are presented. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are
aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are
reported as separate columns in the fund financial statements.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of
the general government, except for those accounted for in another fund.
The Special Projects Fund is used to account for the funding for various City special projects.
The Streets (Capital Projects) Fund is used to account for the City’s construction and
acquisition of streets and street department facilities.
The City reports the following major enterprise funds:
The Water Fund accounts for the activities of pumping, treating and distribution of water.
The Sewer Fund account for the activities of sewer collection and treatment.
The Sanitation Fund is a nonmajor enterprise fund and it accounts for the collection of solid waste and
related services.
During the course of operations the City has activity between funds for various purposes. Any residual
balances outstanding at year end are reported as due from/to other funds and advances to/from other
funds. While these balances are reported in fund financial statements, certain eliminations are made in the
preparation of the government-wide financial statements. Balances between the funds included in
governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the
net amount is included as internal balances in the governmental activities column. Similarly, balances
between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only
the net amount is included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements these amounts are reported at gross amounts as transfers in/out. While reported in
fund financial statements, certain eliminations are made in the preparation of the government-wide
financial statements. Transfers between the funds included in governmental activities are eliminated so
that only the net amount is included as transfers in the governmental activities column. Similarly,
balances between the funds included in business-type activities are eliminated so that only the net amount
is included as internal balances in the business-type activities column.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
31
Note 1.
Summary of Significant Accounting Policies, Continued
Measurement focus and basis of accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are collectible
within the current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences,
and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are
reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital
leases are reported as other financing sources.
Property taxes, sales taxes, state shared revenues, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met,
including any time requirements, and the amount is received during the period or within the availability
period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as
revenue when the qualifying expenditures have been incurred and all other eligibility requirements have
been met, and the amount is received during the period or within the availability period for this revenue
source (within 60 days of year-end). All other revenue items are considered to be measurable and
available only when cash is received by the City.
The proprietary funds are reported using the economic resources measurement focus and the accrual
basis of accounting.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
32
Note 1.
Summary of Significant Accounting Policies, Continued
Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
Deposits and investments
Cash includes cash on hand, demand deposits with banks and other financial institutions, deposits in other
types of accounts or cash management pools that have the general characteristics of demand deposit
accounts and short-term investments with original maturities of three months or less from the date of
acquisition. The City's policy allows for the investment of funds in time certificates of deposit with
federally insured depositories, investment in the state treasurer's pool, obligations of the U. S.
Government and other investments as allowed by Arizona State Statutes.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest investment contracts with a remaining maturity of one year or less at time of
purchase are stated at amortized cost. All other investments are stated at fair value.
Certain resources are classified as cash and investments-restricted in the General Fund and Streets Fund
related to unspent bond proceeds to be utilized in the construction of municipal facilities and street
improvements.
Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as “Internal balances” in the Statement of Net Position and as “Due to” or
“Due from” other funds in the fund financial statements. All trade accounts receivable in the General
Fund and proprietary funds are shown net of an allowance for doubtful accounts.
Inventories and prepaid items
The costs of governmental fund-type inventories are recorded as expenditures when purchased rather than
when consumed. Inventories for the proprietary funds consist of water credits purchased and held for
future consumption. Inventories of materials used in the repair of the distribution, collection and treatment
systems and are not deemed material and have not been reported.
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. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activity
columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an individual cost of more than $5,000 and an estimated useful life in excess of one year.
Capitalized assets are recorded at cost if purchased or constructed. Donated capital assets are recorded at
estimated acquisition value at the date of donation.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
33
Note 1.
Summary of Significant Accounting Policies, Continued
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets constructed. General
government infrastructure capital assets include only those assets acquired or constructed since July 1,
2003.
Land and construction in progress are not depreciated. Depreciation for other property, plant, equipment,
and infrastructure is computed using the straight-line method over the following estimated useful lives:
Building and improvements
Machinery and equipment
Vehicles
Streets, sidewalks & other infrastructure
Land improvements
Sewer plant
Sewer collection system
Water infrastructure
10 to 50 years
5 to 20 years
5 to 15 years
7 to 30 years
10 to 25 years
20 to 50 years
15 to 25 years
10 years
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/ expenditure) until then. The City has one type of item that qualifies for
reporting in this category. It is pension/OPEB related items reported on the government-wide and
proprietary fund financial statements. See footnote 8 for more information.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The City has two types of items that qualify for reporting
in this category. Pension/OPEB related items reported on the government-wide and proprietary fund
financial statements. See footnote 8 for more information. Another item, which arises only under a
modified accrual basis of accounting, unavailable revenue, is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from one source: property taxes.
These amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
34
Note 1.
Summary of Significant Accounting Policies, Continued
Postemployment benefits
For purposes of measuring the net pension and other postemployment benefits (OPEB) assets and
liabilities, deferred outflows of resources and deferred inflows of resources related to pensions and OPEB,
and pension and OPEB expense, information about the plan’s fiduciary net position of the Arizona State
Retirement System (ASRS) and the Arizona Public Safety Personnel Retirement System (PSPRS), and
additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as
they are reported by ASRS and PSPRS. 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.
Net position flow assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net
position and unrestricted – net position in the government-wide and proprietary fund financial statements,
a flow assumption must be made about the order in which the resources are considered to be applied. It is
the City’s policy to consider restricted – net position to have been depleted before unrestricted – net
position is applied.
Fund balance flow assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted
before using any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
Fund balance policies
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. The City itself can establish limitations on
the use of resources through either a commitment (committed fund balance) or an assignment (assigned
fund balance).
The committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the City’s highest level of decision-making authority. The
governing council is the highest level of decision-making authority for the City that can, by adoption of an
ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by
the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to
remove or revise the limitation.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
35
Note 1.
Summary of Significant Accounting Policies, Continued
Amounts in the assigned fund balance classification are intended to be used by the City for specific
purposes but do not meet the criteria to be classified as committed. The council has authorized the City
Manager to assign fund balance. The council may also assign fund balance as it does when appropriating
fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s
appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words,
an additional action does not normally have to be taken for the removal of an assignment. Conversely, as
discussed above, an additional action is essential to either remove or revise a commitment.
Unassigned fund balance is a residual classification of the General Fund. This classification represents
fund balance that has not been assigned to other funds and that has not been restricted, committed, or
assigned to a specific purpose within the General Fund. 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.
Revenues and expenditures/expenses
Program revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants and contributions (including special assessments) that are restricted to meeting the operational or
capital requirements of a particular function or segment. All taxes, including those dedicated for specific
purposes, and other internally dedicated resources are reported as general revenues rather than as program
revenues.
Property taxes
Property tax revenues are recognized as revenues in the year collected or if collected within 60 days
thereafter unless they are prepaid. Maricopa County levies real property taxes on or before the third
Monday in August, which become due and payable in two equal installments on October 1 of the current
year and March 1 of the subsequent year. Taxes become delinquent after the first business day of
November and May, respectively. Interest attaches on installments after the delinquency date.
The County also levies various personal property taxes during the year. A lien against property assessed
attaches on the first day of January preceding the assessment and levy.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
36
Note 1.
Summary of Significant Accounting Policies, Continued
Compensated absences
The City’s employee vacation and sick leave policies generally provide for granting vacation and sick
leave with pay. Vacation benefits vest at the employee’s current rate of pay. For governmental funds,
amounts of vested or accumulated paid time off leave that is not expected to be liquidated with
expendable available financial resources is reported as a liability in the government-wide statement of net
position and as an expense in the government-wide statement of activities. No expenditures are reported
for these amounts in the fund financial statements unless they have matured, for example, as a result of
employee resignations and retirements. Vested or accumulated paid time off leave in the proprietary fund
is recorded as an expense and a liability of that fund as the benefits accrue to the employees and are thus
recorded in both the government-wide financial statements and the individual fund financial statements.
Proprietary funds operating and nonoperating revenues and expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the water fund, wastewater fund, refuse fund, and internal service funds are charges to customers for sales
and services. The water and wastewater funds also recognize as operating revenue the portion of tap fees
intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
Tax abatements
The City has not entered into any tax abatement agreements and the City is not aware of any tax
abatement agreements that have been entered into by other governments that would reduce the City’s tax
revenues.
Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
37
Note 2.
Reconciliation of Government-Wide and Fund Financial Statements
The governmental fund balance sheet includes a reconciliation between total governmental fund balances
and net position of governmental activities as reported in the government-wide statement of net position.
This difference primarily results from the long-term economic focus of the statement of net position
versus the current financial resources focus of the governmental fund balance sheets. The details of these
differences are reported in the reconciliation on page 23.
The governmental fund statement of revenues, expenditures, and changes in fund balance includes
reconciliation between net changes in fund balances-total governmental funds and changes in net position
of governmental activities as reported in the government-wide statement of activities. These differences
are the result of converting from the current resources measurement focus and modified accrual basis for
governmental fund statements to the economic resources measurement focus and full accrual basis used
for government-wide statements. The details of these differences are reported in the reconciliation on
page 25.
Note 3.
Stewardship, Compliance, and Accountability
Stewardship, compliance, and accountability are key concepts in defining the responsibilities of the City.
The use of budgets and monitoring of equity status facilitate the City’s compliance with legal
requirements.
Budgets and budgetary accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds. All annual appropriations lapse at year end. The City Council follows these
procedures in establishing the budgetary data reflected in the financial statements:
1.
In accordance with Arizona Revised Statutes, the City Manager submits a proposed budget for the
fiscal year commencing the following July 1 to the City Council. The operating budget includes
proposed expenditures and the means of financing them for the upcoming year.
2.
Public hearings are conducted to obtain taxpayer comment.
3.
Prior to the third Monday in August, the expenditure limitation for the City is legally enacted through
passage of a resolution. To ensure compliance with the expenditure limitation, a uniform expenditure
report must be filed with the State each year. This report, issued under a separate cover, reconciles
total City expenditures from the audited financial statements to total expenditures for reporting in
accordance with the State’s uniform expenditure reporting system (A.R.S. §41-1279.07).
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
38
Note 3.
Stewardship, Compliance, and Accountability, Continued
4.
State law requires that, prior to April 1, the Economic Estimates Commission provide the City with a
final expenditure limit for the coming fiscal year.
5.
Expenditures may not legally exceed the expenditure limitation of all fund types as a whole. For
management purposes, the City adopts a budget by department for the General Fund and in total by
fund for other funds. The City Council has adopted a budget transfer policy and all amendments must
be done in accordance with this policy.
6.
The City has adopted budgets in accordance with A.R.S. requirements and utilizes the budgets as a
management control device during the year for the General, Special Revenue, Capital Projects, Debt
Service, and Enterprise funds. The budgets are prepared on essentially the same modified accrual
basis of accounting used to record actual revenues and expenditures.
The City is subject to the State of Arizona’s Spending Limitation Law for Towns and Cities. This law
does not permit the City to spend more than budgeted expenses. The limitation is applied to the total of
the combined funds. The City complied with this law during the year.
Supplementary budgetary appropriations were made during the year ended June 30, 2020.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation for
future years, is employed by the City
Expenditures over appropriations
Arizona state law stipulates that no expenditures may be made for a purpose not authorized in the annual
budget. The individual Statements of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual reports as listed in the table of contents present all of the departments which incurred an
excess of expenditures/expenses over appropriations for the year ended June 30, 2020, if any.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
39
Note 4.
Deposits and Investments
Deposits
Custodial Credit Risk
For deposits this is the risk that in the event of a bank failure, the City’s deposit may not be returned to it.
The City does not have a formal policy for custodial credit risk. At year end, the carrying amount of the
City’s deposits was $7,652,502 and the bank balance was $7,953,855. The bank balance was fully
covered by FDIC coverage or collateral held by the pledging financial institution in the City’s name.
Investments
The Arizona State Treasurer’s Office operates the Local Government Investment Pool (LGIP) with no
regulatory oversight. The LGIP is available for investment of funds administered by any Arizona Public
Treasurer.
The LGIP is not registered with the SEC as an investment company. The State Board of Investments
provides oversight for the State Treasurer’s investment pools. Deposits in the LGIP are not insured or
otherwise guaranteed by the State of Arizona, and participants share proportionally in any realized gain or
losses on investments.
The provisions of State law (A.R.S. 35-323) govern the investment of funds in excess of $100,000.
A.R.S. 35-323 allows for investment in certificates of deposit, interest bearing savings accounts,
repurchase agreements with a maximum maturity of 180 days, pooled investment funds established by the
State Treasurer, obligations guaranteed by the United States, bonds of the State of Arizona or other local
municipalities, commercial paper of prime quality that is rated “P1” by Moody’s investors or “A1” by
Standard and Poor’s rating service, and bonds, debentures or notes that are issued by corporations
organized and doing business in the United States subject to certain restrictions. For investments of less
than $100,000, procedures as specified by local ordinance or resolution must be followed.
As of June 30, 2020, the carrying amount of the City’s deposits and investments are as follows:
Weighted
Fair
Credit
Average
Value
Rating (1)
Maturity (2)
Cash on deposit
7,652,502
$
N/A
N/A
Cash on hand
3,950
N/A
N/A
Local Governments Investment Pool 5
58,559,235
AAAF/S1+
0.13 years
Local Governments Investment Pool 700
683,926
AAA
1.21 years
66,899,613
$
(1) Ratings are provided where applicable to indicate associated Credit Risk. N/A indicates not
applicable.
(2) Interest Rate Risk is estimated using the weighted average years to maturity.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
40
Note 4.
Deposits and Investments, Continued
Credit risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
The City’s policy for reducing its exposure to credit risk is to comply with State law (A.R.S. 35-323).
A.R.S. 35-323 limits investment in commercial paper and corporate bonds to the top ratings issued by
nationally recognized statistical rating organizations such as Standard & Poor’s and Moody’s Investor
Services.
Interest rate risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The City’s policy for managing its exposure to fair value loss arising from increasing interest
rates is to comply with the provisions of State law (A.R.S. 35- 323). A.R.S. 35-323 requires that the
City’s investment portfolio maturities do not exceed five years from the time of purchase.
Fair value measurements
As noted above, the City holds investments that are measured at fair value on a recurring basis. 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.
The fair value of each participant’s position in the State Treasurer’s investment pools 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.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
41
Note 5.
Capital Assets
The following table summarizes the changes to capital assets for governmental activities during the year:
Governmental Activities:
Balance
Balance
06/30/19
Additions
Deletions
06/30/20
Capital assets, not being depreciated:
Land
9,701,487
$
-
$
-
$
9,701,487
$
Construction in progress
363,507
2,353,516
(1,874,958)
842,065
Total capital assets, not being depreciated
10,064,994
2,353,516
(1,874,958)
10,543,552
Capital assets, being depreciated:
Buildings and improvements
25,607,799
238,930
-
25,846,729
Equipment and vehicles
8,439,105
579,657
(198,501)
8,820,261
Land improvements
1,894,493
256,112
-
2,150,605
Infrastructure
58,854,344
800,259
-
59,654,603
Total capital assets, being depreciated
94,795,741
1,874,958
(198,501)
96,472,198
Less accumulated depreciation for:
Buildings and improvements
(3,069,465)
(526,565)
-
(3,596,030)
Equipment and vehicles
(4,990,015)
(661,254)
159,077
(5,492,192)
Land improvements
(817,579)
(105,711)
-
(923,290)
Infrastructure
(16,009,889)
(2,288,020)
-
(18,297,909)
Total accumulated depreciation
(24,886,948)
(3,581,550)
159,077
(28,309,421)
Total capital assets, being depreciated, net
69,908,793
(1,706,592)
(39,424)
68,162,777
Governmental activities capital assets, net
79,973,787
$
646,924
$
(1,914,382)
$
78,706,329
$
Depreciation expense was charged to the functions/programs of the City as follows:
Governmental Activities:
General government
Public safety
Public works/streets
Culture & recreation
Health & welfare
Total depreciation expense - governmental activities
311,234
$
3,581,550
$
713,534
1,729,908
443,614
383,260
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
42
Note 5.
Capital Assets, Continued
The following table summarizes the changes to capital assets for business-type activities during the year:
Business-Type Activities:
Balance
Balance
06/30/19
Additions
Deletions
06/30/20
Capital assets not being depreciated:
Land
921,620
$
-
$
-
$
921,620
$
Construction in progress
1,020,719
2,282,957
(2,788,057)
515,619
Total capital assets, not being depreciated
1,942,339
2,282,957
(2,788,057)
1,437,239
Capital assets being depreciated:
Sewer Plant
20,455,101
-
-
20,455,101
Water mains and lines
34,850,791
1,858,813
-
36,709,604
Sewer collection system
9,319,883
147,957
-
9,467,840
Land improvements
5,554,327
-
-
5,554,327
Buildings and improvements
1,663,572
29,685
-
1,693,257
Equipment and vehicles
3,945,048
751,605
(16,399)
4,680,254
Total capital assets, being depreciated
75,788,722
2,788,060
(16,399)
78,560,383
Less accumulated depreciation for:
Sewer Plant
(6,973,883)
(465,302)
-
(7,439,185)
Water mains and lines
(17,906,612)
(1,230,342)
-
(19,136,954)
Sewer collection system
(6,551,389)
(360,833)
-
(6,912,222)
Land improvements
(4,368,771)
(94,974)
-
(4,463,745)
Buildings and improvements
(499,122)
(104,070)
-
(603,192)
Equipment and vehicles
(2,117,357)
(301,194)
16,399
(2,402,152)
Total accumulated depreciation
(38,417,134)
(2,556,715)
16,399
(40,957,450)
Total capital assets, being depreciated, net
37,371,588
231,345
-
37,602,933
Business-type activities capital assets, net
39,313,927
$
2,514,302
$
(2,788,057)
$
39,040,172
$
Depreciation expense was charged to the functions/programs of the City as follows:
Business-Type Activities:
Water
Sewer
Total depreciation expense - business-type activities
1,465,203
$
2,556,715
$
1,091,512
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
43
Note 6.
Long-Term Liabilities
The following is a summary of changes in long-term obligations for the current fiscal year:
Balance
Balance
Current
06/30/19
Additions
Retirements
06/30/20
Portion
Governmental activities
Bonds payable
31,675,000
$
-
$
(10,425,000)
$
21,250,000
$
1,230,000
$
2,171,634
-
(945,723)
1,225,911
-
33,846,634
-
(11,370,723)
22,475,911
1,230,000
Net pension/OPEB liabilities
16,321,884
685,719
-
17,007,603
-
Accrued compensated absences
725,081
727,598
(446,027)
1,006,652
249,771
Total governmental activities
50,893,599
$
1,413,317
$
(11,816,750)
$
40,490,166
$
1,479,771
$
Business-Type activities
Accrued compensated absences
64,190
$
107,362
$
(46,200)
$
125,352
$
31,102
$
9,821,366
965,809
(1,121,965)
9,665,210
1,154,169
Net pension/OPEB liabilities
2,301,783
21,083
-
2,322,866
-
Total business-type activities
12,187,339
$
1,094,254
$
(1,168,165)
$
12,113,428
$
1,185,271
$
Total long-term liabilities
63,080,938
$
2,507,571
$
(12,984,915)
$
52,603,594
$
2,665,042
$
Bond premium
Loans payable from direct borrowings
Net bonds payable
Generally, resources from the General fund are used to liquidate net pension liabilities, OPEB liabilities,
and compensated absences for governmental activities.
The City’s outstanding notes from direct borrowings related to business-type activities of $9,665,210 are
secured with pledged system revenues from future water and sewer operations. The agreement contains a
provision that the future net revenues will exceed 1.2 times the annual debt service. In 2005 the voters
authorized the City to enter into agreements for water and sewer debt up to $32,000,000. To date the City
has issued $25,850,720 leaving a balance of $6,149,280 that may be issued.
In an event of default, the lender shall have the right to take action permitted in the agreement and by law
to collect the amounts then due and thereafter to become due on their scheduled payment dates as well as
other actions including without limitation appointment of a receiver of the System.
Nothing in this Note is intended to provide legal advice related to City issued debt. For further guidance
on debt instruments and guarantees consult with a professional or review the loan documents.
Prior year defeasance of debt
In a prior year the City issued G.O. Refunding Bonds, Series 2017 for an advanced refunding of the
GADA Bond, Series 2015 of $2,000,000. The proceeds were deposited into an irrevocable trust to
provide resources for all future debt service payment on the refunded bonds. The refunded debt is
considered defeased and related liabilities are not included in the City’s financial statements. The
principal amount of defeased debt outstanding at June 30, 2020 is $2,000,000 for the GADA Bond, Series
2015.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
44
Note 6.
Long-Term Liabilities, Continued
The City has entered into Greater Arizona Development Authority (GADA) bond agreements and issued
other general obligation, revenue and refunding bonds to refund prior year issuances and to finance
various municipal, public safety, streets, and park projects. The total outstanding principal does not
include related bond premiums of $2,171,634.
Original
Outstanding
amount
Interest
Remaining
principal
Governmental activities
issued
rate
maturities
June 30, 2020
G.O. Bonds 2012A
14,900,000
$
3.00-5.00%
7/1/19-42
12,355,000
$
Refunding Bonds 2012B
3,305,000
2.125-4.00%
7/1/19-24
1,330,000
G.O. Refunding Bonds, Series 2017
8,385,000
2.00-4.00%
7/1/19-29
7,565,000
Total
21,250,000
$
Principal payments on the governmental activities bonds payable at year end are summarized as follows:
Years ending June 30:
Principal
Interest
2021
1,230,000
$
868,913
$
2022
1,285,000
819,713
2023
1,330,000
775,363
2024
1,365,000
741,413
2025
1,420,000
698,575
2026-2030
6,550,000
2,942,663
2031-2035
2,820,000
1,520,800
2036-2040
3,560,000
842,750
2041-2042
1,690,000
85,500
21,250,000
$
9,295,690
$
Governmental Activities
The City has no outstanding direct borrowings related to governmental-type activities currently.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
45
Note 6.
Long-Term Liabilities, Continued
The City has entered into a number of separate Water Infrastructure Finance Authority (WIFA) loan
agreements to refund a prior year issuance and to finance water and sewer facilities and infrastructure
upgrades. The funding is drawn down from the lender as the upgrade costs are incurred, as such not all
proceeds have been received as of year-end.
Original
Outstanding
amount
Interest
Remaining
principal
Business-type activities
issued
rate
maturities
June 30, 2020
WIFA loan, DE 050-2005
16,550,000
$
2.93%
7/1/19-25
4,485,168
$
WIFA loan, DW 2008
4,040,000
2.75%
7/1/19-27
2,040,198
WIFA loan, 920227-13
4,550,000
2.80%
7/1/19-26
2,771,528
WIFA loan, 910145-13
500,000
2.80%
7/1/19-32
368,316
Total
9,665,210
$
Principal and interest payments on business-type activities loans payable at year end are summarized as
follows:
Years ending June 30:
Principal
Interest
2021
1,154,169
$
231,854
$
2022
1,187,300
198,248
2023
1,221,380
163,677
2024
1,256,442
128,113
2025
1,292,510
91,528
2026-2030
2,804,542
111,046
2031-2033
855,850
4,128
Amount not drawn down
(106,983)
-
9,665,210
$
928,594
$
Direct Borrowings
Business-Type Activities
Pledged revenues – business-type activities. The City has pledged future water and sewer revenues to
repay the outstanding WIFA loans of $9.8 million as of year-end. The agreement contains a provision that
the future net revenues will exceed 1.2 times the annual debt service. In 2005 the voters authorized the
City to enter into agreements for water and sewer debt up to $32,000,000. To date the City has issued
$25,850,720 leaving a balance of $6,149,280 that may be issued. Proceeds from the original loan issuance
provided financing for improvements to the City’s water and sewer systems infrastructure and to refund
certificates of participation. The loans are paid solely from water and sewer revenues and are payable
through 2033.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
46
Note 6.
Long-Term Liabilities, Continued
In an event of default, the lender shall have the right to take action permitted in the agreement and by law
to collect the amounts then due and thereafter to become due on their scheduled payment dates as well as
other actions including without limitation appointment of a receiver of the System.
Nothing in this Note is intended to provide legal advice related to City issued debt. For further guidance
on debt instruments and guarantees consult with a professional or review the loan documents.
Due to reporting requirements and the timing of the July 1st WIFA payments, other City bonded
indebtedness reports may not equal the amounts reported in these financial statements.
Note 7.
Interfund Receivables, Payables, and Transfers
Interfund receivables and payables for the fiscal year ended June 30, 2020 are as follows:
Due From
General
Non-major
Total
General
-
$
5,930
$
5,930
$
Special Projects
2,432,938
-
2,432,938
Non-major
5,794
-
5,794
Total
2,438,732
$
5,930
$
2,444,662
$
Due To
Interfund balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
Interfund transfers for the fiscal year ended June 30, 2020 are as follows:
Transfers Out
General
Special Projects
Capital Street
Non-major
Water
Sewer
Total
General Fund
-
$
100,000
$
10,039,000
$
956,500
$
-
$
-
$
11,095,500
$
Sewer
1,422,000
-
-
-
160,000
-
1,582,000
Water
1,426,000
-
-
-
-
1,394,000
2,820,000
Sanitation
357,000
-
-
-
-
-
357,000
Non-major
563,642
-
75,000
-
-
-
638,642
Total
3,768,642
$
100,000
$
10,114,000
$
956,500
$
160,000
$
1,394,000
$
16,493,142
$
Transfers In
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in the
general fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
47
Note 8.
Pensions and Other Postemployment Benefits
The City contributes to the Arizona State Retirements System and Public Safety Personnel Retirement
System plans described below. The plans are component units of the State of Arizona. At June 30, 2020,
the City reported the following aggregate amounts related to pensions and other post employment benefits
(OPEB) for all plans to which it contributes:
Statement of Net Position
Governmental
Business-Type
and Statement of Activities
ASRS
PSPRS
Combined Total
Activities
Activities
Net pension/OPEB asset
16,145
$
135,036
$
151,181
$
146,780
$
4,401
$
Net pension/OPEB liabilities
8,521,320
10,809,149
19,330,469
17,007,603
2,322,866
Deferred outflows of resources
1,024,754
5,578,407
6,603,161
6,323,819
279,342
Deferred inflows of resources
692,311
1,764,199
2,456,510
2,267,789
188,721
Pension/OPEB expense
730,037
2,266,363
2,996,400
2,797,396
199,004
The City reported $2,487,224 of pension and OPEB contributions as expenditures in the governmental
funds related to all plans to which it contributes.
Arizona State Retirement System (ASRS)
Plan description – City employees not covered by the other pension plans described below participate in
the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer
defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium
benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB)
plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of
A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that
includes its financial statements and required supplementary information. The report is available on its
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:
Initial Membership Date
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
30 years age 55
10 years age 62
25 years age 60
5 years age 50*
10 years age 62
any years age 65
5 years age 50*
any years age 65
Final average salary is
based on
Highest 36 consecutive months
of last 120 months
Highest 60 consecutive 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.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
48
Note 8.
Pensions and Other Postemployment Benefits, Continued
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 earning. 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.
Health insurance premium benefits are available to retired or disabled members with 5 years of credited
service. The benefits are payable only with respect to allowable health insurance premiums for which the
member is responsible. For members with 10 or more years of service, benefits range from $100 per
month to $260 per month depending on the age of the member and dependents. For members with 5 to 9
years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based
on completed years of service.
Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly
earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates.
Members with long-term disability commencement dates after June 30, 1999, are limited to 30 years of
service or the service on record as of the effective disability date if their service is greater than 30 years.
Contributions – In accordance with state statutes, annual actuarial valuations determine active member
and employer contribution requirements. The combined active member and employer contribution rates
are expected to finance the costs of benefits employees earn during the year, with an additional amount to
finance any unfunded accrued liability. For the year ended June 30, 2020, statute required active ASRS
members to contribute at the actuarially determined rate of 12.11 percent (11.94 percent for retirement
and 0.17 percent for long-term disability) of the members' annual covered payroll, and statute required the
City to contribute at the actuarially determined rate of 12.11 percent (11.45 percent for retirement, 0.49
percent for health insurance premium benefit, and 0.17 percent for long-term disability) of the active
members' annual covered payroll. In addition, the City was required by statute to contribute at the
actuarially determined rate of 10.41 percent (10.29 percent for retirement, 0.05 percent for health
insurance premium benefit, and 0.07 percent for long-term disability) of annual covered payroll of retired
members who worked for the City in positions that an employee who contributes to the ASRS would
typically fill.
The City's contributions to the pension, health insurance premium benefit, and long-term disability plans
for the year ended June 30, 2020, were $750,450, $32,115, and $11,142, respectively.
Liability – At June 30, 2020, the City reported the following asset and liabilities for its proportionate
share of the ASRS' net pension/OPEB liability.
Net pension/OPEB
(asset) liability
Pension
8,483,328
$
Health insurance premium benefit
(16,145)
Long-term disability
37,992
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
49
Note 8.
Pensions and Other Postemployment Benefits, Continued
The net asset and net liabilities were measured as of June 30, 2019. The total liability used to calculate
the net asset and net liability was determined using update procedures to roll forward the total liability
from an actuarial valuation as of June 30, 2018, to the measurement date of June 30, 2019.
The City's proportion of the net asset or net liability was based on the City's actual contributions to the
plan relative to the total of all participating employers' contributions for the year ended June 30, 2019.
The City's proportion measured as of June 30, 2019, and the change from its proportions measured as of
June 30, 2018, were:
Proportion
June 30, 2018
Proportion
June 30, 2019
Increase
(decrease) from
June 30, 2018
Pension
0.059200%
0.058300%
-0.000900%
Health insurance premium benefit
0.059360%
0.058420%
-0.000940%
Long-term disability
0.059270%
0.058320%
-0.000950%
Expense – For the year ended June 30, 2020, the City recognized pension and OPEB expense:
Pension/OPEB Expense
Pension
697,575
$
Health insurance premium benefit
20,229
Long-term disability
12,233
Deferred outflows/inflows of resources – At June 30, 2020, the City reported deferred outflows of
resources and deferred inflows of resources related to pensions and OPEB from the following sources:
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
50
Note 8.
Pensions and Other Postemployment Benefits, Continued
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
153,254
$
1,595
$
-
$
19,299
$
4,489
$
-
$
35,859
337,823
31,750
-
5,684
-
-
190,676
-
20,995
-
810
-
120,669
-
62
10
382
750,450
-
32,115
-
11,142
-
Total
939,563
$
650,763
$
63,865
$
40,356
$
21,325
$
1,192
$
Contributions subsequent to the
measurement date
Pension
Health Insurance Premium Benefit
Long-Term Disability
Differences between expected
and actual experience
Changes of assumptions or other
inputs
Net difference between projected
and actual earnings on pension
plan investments
Changes in proportion and
differences between contributions
and proportionate share of
contributions
The amounts reported as deferred outflows of resources related to ASRS pensions and OPEB resulting
from City contributions subsequent to the measurement date will be recognized as an increase of the net
asset or a reduction of the net liability in the year ending June 30, 2021. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to ASRS pensions and OPEB
will be recognized as expenses as follows:
Year Ended
June 30,
Pension
Health Insurance
Premium Benefit
Long-term
disability
2021
(208,307)
$
(7,006)
$
869
$
2022
(267,793)
(7,006)
869
2023
(36,618)
1,948
1,660
2024
51,068
3,914
1,805
2025
-
(456)
1,503
Thereafter
-
-
2,285
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
51
Note 8.
Pensions and Other Postemployment Benefits, Continued
Actuarial Assumptions – The significant actuarial assumptions used to measure the total pension
liability are as follows:
Actuarial valuation date
June 30, 2018
Actuarial roll forward date
June 30, 2019
Actuarial cost method
Entry age normal
Investment rate of return
7.5%
Projected salary increases
2.7-7.2% for pensions/not applicable for OPEB
Inflation
2.3%
Permanent benefit increase
Included for pensions/not applicable for OPEB
Mortality rates
2017 SRA Scale U-MP for pensions and health
insurance premium benefit
Recovery rates
2012 GLDT for long-term disability
Healthcare cost trend rate
Not applicable
Actuarial assumptions used in the June 30, 2018, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2016.
The long-term expected rate of return on ASRS plan investments was determined to be 7.5 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 and by adding 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
Geometric Real Rate of
Return
Equity
50%
6.09%
Credit
20%
5.36%
Interest rate sensitive bonds
10%
1.62%
Real estate
20%
5.85%
Totals
100%
Discount rate – The discount rate used to measure the ASRS total pension/OPEB liability was 7.5
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 plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
plan investments was applied to all periods of projected benefit payments to determine the total
pension/OPEB liability.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
52
Note 8.
Pensions and Other Postemployment Benefits, Continued
Sensitivity of the proportionate share of the net pension/OPEB (asset) liability to changes in the
discount rate – The following table presents the City's proportionate share of the net pension/OPEB
(asset) liability calculated using the discount rate of 7.5 percent, as well as what the City's proportionate
share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage
point lower (6.5 percent) or 1 percentage point higher (8.5 percent) than the current rate:
1% Decrease
Discount Rate
1% Increase
(6.50%)
(7.50%)
(8.50%)
Proportionate share of
Net pension liability
12,073,741
$
8,483,328
$
5,482,667
$
Net insurance premium benefit liability (asset)
81,780
(16,145)
(99,581)
Net long-term disability liability
42,047
37,992
34,060
Plan fiduciary net position – Detailed information about the plan's fiduciary net position is available in
the separately issued ASRS financial report.
Public Safety Personnel Retirement System (PSPRS)
Plan description – City police and fire employees who are regularly assigned hazardous duty participate
in the Public Safety Personnel Retirement System (PSPRS). The PSPRS administers agent and cost-
sharing multiple-employer defined benefit pension plans and agent and cost-sharing multiple-employer
defined benefit health insurance premium benefit (OPEB) plans. A nine-member board known as the
Board of Trustees and the participating local boards govern the PSPRS according to the provisions of
A.R.S. Title 38, Chapter 5, Article 4. Employees who were PSPRS members before July 1, 2017,
participate in the agent plans, and those who became PSPRS members on or after July 1, 2017, participate
in the cost-sharing plans (PSPRS Tier 3 Risk Pool), which are not further disclosed because of their
relative insignificance to the City’s financial statements.
The PSPRS issues a publicly available financial report that includes financial statements and required
supplementary information for PSPRS. The reports are available on the PSPRS website at
www.psprs.com.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
53
Note 8.
Pensions and Other Postemployment Benefits, Continued
Benefits provided – The PSPRS provides retirement, health insurance premium supplement, disability,
and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits
are calculated on the basis of age, average monthly compensation, and service credit as follows:
Initial Membership Date:
Before January 1, 2012
On or After January 1, 2012
and before July 1, 2017
On or after July 1, 2017
Retirement and Disability
Years of service and
age required to receive
benefit
20 years of service, any age
25 years of service or 15 years
15 years of credited service, age 52.5*
15 years of service, age 62
of credited of service, age 52.5
15 years or more of service, age 55
Final average salary is
based on
Highest 36 consecutive months
of last 20 years
Highest 60 consecutive months
of last 20 years
Highest 60 consecutive months of last
15 years
Benefit percent
Normal Retirement
50% less 4.0% for each year of
credited service less than 20
years OR plus 2.0% to 2.5% for
each year of credited service over
20 years, not to exceed 80%
1.5% to 2.5% per year of credited service, not to exceed 80%
Accidental Diability
Retirement
50% or normal retirement, whichever is greater
Catastrophic
Disability
Retirement
90% for the first 60 months then reduced to either 62.5% or normal retirement, whichever is greater
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% to 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
* With actuarially reduced benefits
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.
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
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
54
Note 8.
Pensions and Other Postemployment Benefits, Continued
Employees covered by benefit terms – At June 30, 2020, the following employees were covered by the
agent plans’ benefit terms:
PSPRS - Police
Pension
Health
Inactive employees or beneficiaries currently receiving benefits
14
14
Inactive employees entitled to but not yet receiving benefits
11
4
Active employees
36
36
Total
61
54
PSPRS - Fire
Pension
Health
Inactive employees or beneficiaries currently receiving benefits
3
3
Inactive employees entitled to but not yet receiving benefits
4
0
Active employees
22
22
Total
29
25
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 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. Contribution rates for the year ended
June 30, 2020, are indicated below. Rates are a percentage of active members’ annual covered payroll.
PSPRS Police
7.65-11.65%
37.13%
0.41%
PSPRS Tier 3 risk pool
9.94%
9.68%
0.26%
Active member -
Pension
City - Pension
City-Health
insurance
premium
PSPRS Fire
7.65-11.65%
18.88%
0.15%
In addition, statute required the City to contribute at the actuarially determined rate of 22.21% for police
and 3.67% 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.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
55
Note 8.
Pensions and Other Postemployment Benefits, Continued
The City’s contributions to the plans for the year ended June 30, 2020, were:
PSPRS - Police
Pension
PSPRS
1,331,592
$
14,704
$
PSPRS Tier 3 risk pool
56,059
1,506
Health
insurance
premium
benefit
PSPRS - Fire
Pension
PSPRS
420,478
$
3,341
$
PSPRS Tier 3 risk pool
38,279
1,028
Health
insurance
premium
benefit
During fiscal year 2020, the City paid for PSPRS pension and OPEB contributions 100% from the general
fund.
Liability – At June 30, 2020, the City reported the following assets and liabilities.
Net pension
Net OPEB
(asset) liability
(asset) liability
PSPRS Police
9,734,306
$
(64,465)
$
PSPRS Fire
1,074,844
$
(70,571)
$
The net assets and net liabilities were measured as of June 30, 2019, and the total liability used to
calculate the net asset or liability was determined by an actuarial valuation as of that date. The total
liabilities as of June 30, 2019, reflect changes of actuarial assumptions to decrease the investment rate of
return from 7.4 percent to 7.3 percent and update the mortality rates.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
56
Note 8.
Pensions and Other Postemployment Benefits, Continued
Actuarial assumptions – The significant actuarial assumptions used to measure the total pension/OPEB
liability are as follows:
Actuarial valuation date
June 30, 2019
Actuarial cost method
Entry Age Normal
Investment rate of return
7.30%
Wage inflation
3.5% for pensions/not applicable for OPEB
Price inflation
2.5% for pensions/not applicable for OPEB
Cost-of-living adjustment
benefit increase
1.75% for pensions/not applicable for OPEB
Mortality rates
PubS-2010 tables.
Healthcare cost trend rate
Not applicable
Actuarial assumptions used in the June 30, 2019, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2016.
The long-term expected rate of return on PSPRS plan investments was determined to be 7.3 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
Short term investments
2.00%
0.25%
Risk parity
4.00%
4.01%
Fixed income
5.00%
3.00%
Real assets
9.00%
6.75%
GTS
12.00%
4.01%
Private credit
16.00%
5.36%
Real estate
10.00%
4.50%
Private equity
12.00%
8.40%
Non-U.S. equity
14.00%
5.00%
U.S. equity
16.00%
4.75%
Total
100.00%
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
57
Note 8.
Pensions and Other Postemployment Benefits, Continued
Discount Rate –At June 30, 2019, the discount rate used to measure the PSPRS total pension/OPEB
liability was 7.30 percent, which was a decrease of 0.1 from the discount rate used as of June 30, 2018.
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 these
assumptions, the plans’ fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on plan
investments was applied to all periods of projected benefit payments to determine the total pension/OPEB
liability.
Changes in the net pension/OPEB liability
PSPRS-Police
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(a) - (b)
Balances at June 30, 2019
20,908,395
$
11,625,612
$
9,282,783
$
369,585
$
345,301
$
24,284
$
Changes for the year:
Service cost
736,361
-
736,361
10,113
-
10,113
Interest on total pension/OPEB liability
1,577,961
-
1,577,961
27,919
-
27,919
Difference between expected and
(51,194)
-
(51,194)
(92,103)
-
(92,103)
Changes of assumptions
728,190
-
728,190
3,972
-
3,972
Contributions - employer
-
1,583,042
(1,583,042)
-
12,412
(12,412)
Contributions - employee
-
327,451
(327,451)
-
-
-
Net investment income
-
649,317
(649,317)
-
18,821
(18,821)
Benefit payments, including refunds
of employee contributions
(641,925)
(641,925)
-
(4,828)
(4,828)
-
Plan administrative expenses
-
(12,273)
12,273
-
(325)
325
Net changes
2,349,393
1,905,612
443,781
(54,927)
26,080
(81,007)
Adjustment to beginning of year
-
(7,742)
7,742
-
7,742
(7,742)
Balances at June 30, 2020
23,257,788
$
13,523,482
$
9,734,306
$
314,658
$
379,123
$
(64,465)
$
actual experience in the measurement of
the pension/OPEB liability
Health insurance premium benefit
Pension
Increase (decrease)
Increase (decrease)
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
58
Note 8.
Pensions and Other Postemployment Benefits, Continued
PSPRS-Fire
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(a) - (b)
Balances at June 30, 2019
7,345,025
$
6,315,711
$
1,029,314
$
111,453
$
155,922
$
(44,469)
$
Changes for the year:
Service cost
443,749
-
443,749
5,801
-
5,801
Interest on total pension/OPEB liability
570,104
-
570,104
8,677
-
8,677
Difference between expected and
147,078
-
147,078
(28,153)
-
(28,153)
Changes of assumptions
194,141
-
194,141
1,352
-
1,352
Contributions - employer
-
800,812
(800,812)
-
3,492
(3,492)
Contributions - employee
-
168,004
(168,004)
-
-
-
Net investment income
-
349,715
(349,715)
-
8,519
(8,519)
Benefit payments, including refunds
of employee contributions
(169,342)
(169,342)
-
-
-
-
Plan administrative expenses
-
(7,073)
7,073
(147)
147
Net changes
1,185,730
1,142,116
43,614
(12,323)
11,864
(24,187)
Adjustment to beginning of year
-
(1,916)
1,916
-
1,915
(1,915)
Balances at June 30, 2020
8,530,755
$
7,455,911
$
1,074,844
$
99,130
$
169,701
$
(70,571)
$
actual experience in the measurement of
the pension/OPEB liability
Pension
Increase (decrease)
Health insurance premium benefit
Increase (decrease)
Sensitivity of the City’s net pension/OPEB (asset) liability to changes in the discount rate – The
following table presents the City's net pension/OPEB (assets) liabilities calculated using the discount rate
of 7.3%, as well as what the City's net pension/OPEB (assets) 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
Discount Rate
1% Increase
(6.30%)
(7.30%)
(8.30%)
PSPRS-Police
Net pension (asset) / liability
13,287,040
$
9,734,306
$
6,870,867
$
Net OPEB (asset)/ liability
(22,991)
(64,465)
(99,102)
PSPRS-Fire
Net pension (asset) / liability
2,565,341
$
1,074,844
$
(114,834)
$
Net OPEB (asset)/ liability
(56,069)
(70,571)
(82,655)
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
59
Note 8.
Pensions and Other Postemployment Benefits, Continued
Plan fiduciary net position – Detailed information about the plans’ fiduciary net position is available in
the separately issued PSPRS financial report.
Expense – For the year ended June 30, 2020, the City recognized the following pension and OPEB
expense:
Pension expense
OPEB expense
PSPRS Police
1,846,994
$
(15,210)
$
PSPRS Fire
439,752
$
(5,173)
$
Deferred outflows/inflows of resources – At June 30, 2020, the City reported deferred outflows of
resources and deferred inflows of resources related to pensions and OPEB from the following sources:
PSPRS - Police
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
1,581,098
$
510,269
$
-
$
93,148
$
Changes in assumptions
945,552
-
3,479
21,885
192,892
-
1,481
-
Contributions subsequent to the measurement date
1,331,592
-
14,704
-
Total
4,051,134
$
510,269
$
19,664
$
115,033
$
Net difference between projected and actual earnings on
pension/OPEB plan investments
Pension
Health Insurance Premium Benefit
PSPRS - Fire
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
452,089
$
1,077,325
$
-
$
49,823
$
Changes in assumptions
469,801
-
1,248
11,749
120,549
-
797
-
Contributions subsequent to the measurement date
458,757
-
4,369
-
Total
1,501,196
$
1,077,325
$
6,414
$
61,572
$
Net difference between projected and actual earnings on
pension/OPEB plan investments
Pension
Health Insurance Premium Benefit
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
60
Note 8.
Pensions and Other Postemployment Benefits, Continued
The amounts reported as deferred outflows of resources related to pensions and OPEB resulting from City
contributions subsequent to the measurement date will be recognized as an increase in the net asset or a
reduction of the net liability in the year ending June 30, 2020. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized
as expenses as follows:
Year Ended
June 30
Pension
Health
Insurance
Premium
Benefit
2021
569,137
$
(20,001)
$
2022
357,534
(20,000)
2023
375,213
(17,536)
2024
469,726
(17,562)
2025
340,949
(12,076)
Thereafter
96,714
(22,898)
PSPRS - Police
Pension
Health
Insurance
Premium
Benefit
46,681
$
(6,224)
$
(21,633)
(6,225)
19,464
(5,176)
13,845
(5,302)
(15,548)
(5,931)
(77,695)
(30,669)
PSPRS - Fire
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
61
Note 9.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; and natural disasters.
The City’s insurance protection is provided by the Arizona Risk Retention Pool, of which the City is a
participating member. The limit for basic coverage is $2,000,000 per occurrence on a claims made basis.
Excess coverage is for an additional $8,000,000 per occurrence on a follow form, claims made basis. The
aggregate limit is also $2,000,000. The Arizona Risk Retention Pool is structured such that member
premiums are based on an actuarial review that will provide adequate reserves to allow the Pool to meet
its expected financial obligations. The Pool has the authority to assess its members additional premiums
should reserves and annual premiums be insufficient to meet the Pool’s obligations. No significant
reduction in insurance coverage occurred during the year and no settlements exceeded insurance coverage
during any of the past three fiscal years.
The City is self-insured through the Arizona Metropolitan Trust (AzMT) for employee’s medical, dental,
life and employee assistance program coverage (EAP). AzMT is a self-insured benefits pool established
pursuant to A.R.S. 11-952 et. seq. that provides coverage for each of its member entities. The City pays a
monthly premium to AzMT for the employee’s medical, dental, life and EAP coverage. AzMT reinsures
through commercial companies for claims in excess of specified and aggregate amounts.
The City is insured by Arizona Municipal Workers Compensation Pool for potential worker related
accidents.
Note 10.
Contingent Liabilities and Significant Commitments
The City is contingently liable with respect to lawsuits and other claims incidental to the ordinary course
of its operations. In the opinion of City management, such matters will not have a material adverse effect
on the City’s financial position at June 30, 2020.
As of June 30, 2020 the City had the following amounts encumbered for unperformed contracts to be
completed after June 30, 2020: General Fund $155,798, Streets (HURF) $10,224, Streets (Capital
Projects) $211,601, Special Projects $95,883, Court Enhancement $6,530, Water $343,032, and Sewer
$3,175.
At year end, the City had the following major construction projects/commitments open:
Project
Estimated Cost
Construction
in Progress
Dysart Road Improvements
13,844,000
$
801,029
$
121st Ave. and Cheryl Dr. Improvements
230,000
3,850
The COVID-19 outbreak has caused business disruptions and has had an economic impact on most of the
United States. The City may be impacted in some manner but the extent is uncertain and cannot be
estimated at this time.
CITY OF EL MIRAGE, ARIZONA
Notes to the Financial Statements
June 30, 2020
62
Note 11.
Prior Period Adjustment
The City previously recorded the value of earned and purchased water credits but did not record a value
for used water credits. Beginning with this fiscal year the City is recording earned, purchased, and used
water credits as changes to inventory. As a result the City is recording a prior period adjustment of
$681,674 to reduce inventory for previously used water credits.
Note 12.
Subsequent Events
In December 2019 the Council authorized the purchase of water credits totaling $8,687,500. The Council
also authorized a reimbursement resolution from the Water Finance Authority of Arizona (WIFA). The
City formally entered into a loan agreement with WIFA on August 5, 2020; borrowing $8,687,500 at a
weighted maturity of 13.8674 years, with a yield rate of 1.874%, and a final maturity of July 1, 2045.
This loan will be repaid from water customer rates and charges.
63
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of the Proportionate Share of the Net Pension Liability
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
64
ASRS - Pension
2020
2019
2018
2017
2016
2015
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
Proportion of the net pension liability (asset)
0.058300%
0.059200%
0.059400%
0.061520%
0.061230%
0.0633100%
Proportionate share of the net pension
liability (asset)
8,483,328
$
8,256,317
$
9,253,362
$
9,929,946
$
9,537,628
$
9,163,794
$
Covered payroll
5,982,621
$
5,832,827
$
5,699,811
$
5,570,055
$
5,677,172
$
5,598,748
$
Proportionate share of the net pension
liability (asset) as a percentage of its
covered payroll
141.80%
141.55%
162.35%
178.27%
168.00%
163.68%
Plan fiduciary net position as a percentage
of the total pension liability
73.24%
73.40%
69.92%
67.06%
68.35%
69.49%
(Measurement Date)
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension
schedule above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of the Proportionate Share of the Net OPEB Liability
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
65
ASRS - Health insurance premium benefit
2020
2019
2018
2017
(2019)
(2018)
(2017)
(2016)
Proportion of the net OPEB (asset)
0.058420%
0.059360%
0.059340%
0.059337%
Proportionate share of the net OPEB (asset)
(16,145)
$
(21,375)
$
(32,305)
$
17,158
$
Covered payroll
5,982,621
$
5,832,827
$
5,699,811
$
5,570,055
$
Proportionate share of the net OPEB (asset) as a
percentage of its covered payroll
-0.27%
-0.37%
-0.57%
0.31%
Plan fiduciary net position as a percentage of the total
OPEB liability
101.62%
102.20%
103.57%
98.02%
(Measurement Date)
Reporting Fiscal Year
ASRS - Long-term disability
2020
2019
2018
2017
(2019)
(2018)
(2017)
(2016)
Proportion of the net OPEB (asset)
0.058320%
0.059270%
0.059190%
0.059191%
Proportionate share of the net OPEB (asset)
37,992
$
30,969
$
21,455
$
21,271
$
Covered payroll
5,982,621
$
5,832,827
$
5,699,811
$
5,570,055
$
Proportionate share of the net OPEB (asset) as a
percentage of its covered payroll
0.64%
0.53%
0.38%
0.38%
Plan fiduciary net position as a percentage of the total
OPEB liability
72.85%
77.83%
84.44%
85.17%
(Measurement Date)
Reporting Fiscal Year
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedules above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
66
PSPRS Police - Pension
2020
2019
2018
2017
2016
2015
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
Total pension liability
Service cost
736,361
$
611,179
$
641,361
$
579,406
$
530,107
$
522,850
$
Interest on total pension liability
1,577,961
1,289,327
1,245,009
1,108,770
1,006,969
849,641
Changes of benefit terms
-
-
127,782
894,728
-
190,732
Difference between expected and actual
experience of the total net pension liability
(51,194)
2,176,715
(760,486)
(247,754)
292,348
(284,861)
Changes of assumptions
728,190
-
143,402
683,819
-
1,185,003
Benefit payments, including refunds of
employee contributions
(641,925)
(573,147)
(544,380)
(604,179)
(510,323)
(415,304)
Net change in total pension liability
2,349,393
3,504,074
852,688
2,414,790
1,319,101
2,048,061
Total pension liability - beginning
20,908,395
17,404,321
16,551,633
14,136,843
12,817,742
10,769,681
Total pension liability - ending (a)
23,257,788
$
20,908,395
$
17,404,321
$
16,551,633
$
14,136,843
$
12,817,742
$
Plan fiduciary net position
Contributions - employer
1,583,042
$
1,365,177
$
798,249
$
809,325
$
593,877
$
531,345
$
Contributions - employee
327,451
364,283
454,373
346,149
321,510
326,197
Net investment income
649,317
739,044
1,044,757
47,376
273,401
839,169
Benefit payments, including refunds of
employee contributions
(641,925)
(573,147)
(544,380)
(604,179)
(510,323)
(415,304)
Hall/Parker Settlement
-
(417,731)
Administrative Expense
(12,273)
(11,948)
(9,644)
(7,217)
(7,057)
Other (net transfer)
-
34,476
(92,977)
15,359
23,149
(340,763)
Net change in plan fiduciary net position
1,905,612
1,500,154
1,650,378
606,813
694,557
940,644
Plan fiduciary net position - beginning
11,625,612
10,125,458
8,475,080
7,868,267
7,173,710
6,233,066
Adjustment to beginning of year
(7,742)
-
-
-
-
-
Plan fiduciary net position - ending (b)
13,523,482
$
11,625,612
$
10,125,458
$
8,475,080
$
7,868,267
$
7,173,710
$
Net pension liability - ending (a) - (b)
9,734,306
$
9,282,783
$
7,278,863
$
8,076,553
$
6,268,576
$
5,644,032
$
Plan fiduciary net position as a percentage of
the total pension liability
58.15%
55.60%
58.18%
51.20%
55.66%
55.97%
Covered payroll
3,162,313
$
2,733,357
$
2,824,133
$
2,968,270
$
2,769,201
$
2,738,836
$
Net pension liability as a percentage of
covered payroll
307.82%
339.61%
257.74%
272.10%
226.37%
206.07%
(Measurement Date)
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension
schedule above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
67
PSPRS Fire - Pension
2020
2019
2018
2017
2016
2015
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
Total pension liability
Service cost
443,749
$
414,433
$
386,340
$
317,068
$
336,932
$
318,083
$
Interest on total pension liability
570,104
529,468
505,857
465,137
400,223
317,292
Changes of benefit terms
-
-
67,195
625,097
-
16,409
Difference between expected and actual
experience of the total net pension liability
147,078
(423,180)
(386,730)
(757,647)
270,625
361,588
Changes of assumptions
194,141
-
20,032
278,976
-
228,856
Benefit payments, including refunds of
employee contributions
(169,342)
(246,904)
(146,164)
(141,470)
(200,362)
(190,050)
Net change in total pension liability
1,185,730
273,817
446,530
787,161
807,418
1,052,178
Total pension liability - beginning
7,345,025
7,071,208
6,624,678
5,837,517
5,030,099
3,977,921
Total pension liability - ending (a)
8,530,755
$
7,345,025
$
7,071,208
$
6,624,678
$
5,837,517
$
5,030,099
$
Plan fiduciary net position
Contributions - employer
800,812
$
668,971
$
330,799
$
281,360
$
225,909
$
258,272
$
Contributions - employee
168,004
167,731
187,125
202,337
199,018
182,336
Net investment income
349,715
397,321
572,712
27,547
159,295
464,743
Benefit payments, including refunds of
employee contributions
(169,342)
(246,904)
(146,164)
(141,470)
(200,362)
(190,050)
Hall/Parker Settlement
-
(232,700)
-
-
-
-
Pension Plan Administrative Expense
(7,073)
(6,747)
(5,468)
(4,363)
(4,277)
Other (net transfer)
-
(11,097)
(146,642)
(223,413)
244,344
(98,445)
Net change in plan fiduciary net position
1,142,116
736,575
792,362
141,998
623,927
616,856
Plan fiduciary net position - beginning
6,315,711
5,579,136
4,786,774
4,644,776
4,020,849
3,403,993
Adjustment to beginning of year
(1,916)
-
-
-
-
-
Plan fiduciary net position - ending (b)
7,455,911
$
6,315,711
$
5,579,136
$
4,786,774
$
4,644,776
$
4,020,849
$
Net pension liability - ending (a) - (b)
1,074,844
$
1,029,314
$
1,492,072
$
1,837,904
$
1,192,741
$
1,009,250
$
Plan fiduciary net position as a percentage of
the total pension liability
87.40%
85.99%
78.90%
72.26%
79.57%
79.94%
Covered payroll
1,773,739
$
1,812,916
$
1,725,504
$
1,687,430
$
1,765,349
$
1,735,840
$
Net pension liability as a percentage of
covered payroll
60.60%
56.78%
86.47%
108.92%
67.56%
58.14%
(Measurement Date)
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension
schedule above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
68
PSPRS Police
Health Insurance Premium Benefit
2020
2019
2018
(2019)
(2018)
(2017)
Total OPEB liability
Service cost
10,113
$
10,387
$
10,167
$
Interest on total OPEB liability
27,919
25,869
27,320
Changes of benefit terms
-
-
3,290
Difference between expected and actual
experience of the total net OPEB liability
(92,103)
(8,286)
(11,227)
Changes of assumptions or other inputs
3,972
-
(38,439)
Benefit payments
(4,828)
(5,543)
(6,280)
Net change in total OPEB liability
(54,927)
22,427
(15,169)
Total OPEB liability - beginning
369,585
347,158
362,327
Total OPEB liability - ending (a)
314,658
$
369,585
$
347,158
$
Plan fiduciary net position
Contributions - employer
12,412
$
6,289
$
11,219
$
Net investment income
18,821
22,528
33,784
Benefit payments
(4,828)
(5,543)
(6,280)
Administrative expense
(325)
(343)
(298)
Net change in plan fiduciary net position
26,080
22,931
38,425
Plan fiduciary net position - beginning
345,301
322,370
283,945
Adjustment to beginning of year
7,742
-
-
Plan fiduciary net position - ending (b)
379,123
$
345,301
$
322,370
$
Net OPEB liability - ending (a) - (b)
(64,465)
$
24,284
$
24,788
$
Plan fiduciary net position as a percentage of
the total OPEB liability
120.49%
93.43%
92.86%
Covered payroll
3,162,313
$
2,733,357
$
2,824,133
$
Net OPEB (asset) liability as a percentage of
covered payroll
-2.04%
0.89%
0.88%
Reporting Fiscal Year
(Measurement Date)
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedule above. Additional information will be displayed as it becomes available
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
69
PSPRS Fire
Health Insurance Premium Benefit
2020
2019
2018
(2019)
(2018)
(2017)
Total OPEB liability
Service cost
5,801
$
6,164
$
5,694
$
Interest on total OPEB liability
8,677
8,463
9,656
Changes of benefit terms
-
-
1,628
Difference between expected and actual
experience of the total net OPEB liability
(28,153)
(14,462)
(15,726)
Changes of assumptions or other inputs
1,352
-
(15,859)
Benefit payments
-
-
-
Net change in total OPEB liability
(12,323)
165
(14,607)
Total OPEB liability - beginning
111,453
111,288
125,895
Total OPEB liability - ending (a)
99,130
$
111,453
$
111,288
$
Plan fiduciary net position
Contributions - employer
3,492
$
4,208
$
5,693
$
Net investment income
8,519
10,009
14,588
Benefit payments
-
-
-
Administrative expense
(147)
(152)
(130)
Net change in plan fiduciary net position
11,864
14,065
20,151
Plan fiduciary net position - beginning
155,922
141,857
121,706
Adjustment to beginning of year
1,915
-
-
Plan fiduciary net position - ending (b)
169,701
$
155,922
$
141,857
$
Net OPEB (asset) liability - ending (a) - (b)
(70,571)
$
(44,469)
$
(30,569)
$
Plan fiduciary net position as a percentage of
the total OPEB liability
171.19%
139.90%
127.47%
Covered payroll
1,773,739
$
1,812,916
$
1,725,504
$
Net OPEB liability as a percentage of covered
payroll
-3.98%
-2.45%
-1.77%
Reporting Fiscal Year
(Measurement Date)
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedule above. Additional information will be displayed as it becomes available
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Pension/OPEB Contributions
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
70
ASRS - Pension
2020
2019
2018
2017
2016
2015
Contractually required contribution
750,450
$
687,381
$
641,354
$
624,521
$
604,351
$
618,244
$
Contributions in relation to the contractually
required contribution
(750,450)
(687,381)
(641,354)
(624,521)
(604,351)
(618,244)
Contribution deficiency (excess)
-
$
-
$
-
$
-
$
-
$
-
$
Covered payroll
6,381,844
$
5,982,621
$
5,832,827
$
5,699,811
$
5,570,055
$
5,677,172
$
Contributions as a percentage of covered
payroll
11.76%
11.49%
11.00%
10.96%
10.85%
10.89%
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension schedule
above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Pension/OPEB Contributions
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
71
ASRS - Health insurance premium benefit
2020
2019
2018
2017
Contractually required contribution
32,115
$
27,657
$
25,476
$
31,945
$
Contributions in relation to the contractually required
contribution
(32,115)
(27,657)
(25,476)
(31,945)
Contribution deficiency (excess)
-
$
-
$
-
$
-
$
Covered payroll
6,381,844
$
5,982,621
$
5,832,827
$
5,699,811
$
Contributions as a percentage of covered payroll
0.50%
0.46%
0.44%
0.56%
Reporting Fiscal Year
ASRS - Long-term disability
2020
2019
2018
2017
Contractually required contribution
11,142
$
9,691
$
9,405
$
8,050
$
Contributions in relation to the contractually required
contribution
(11,142)
(9,691)
(9,405)
(8,050)
Contribution deficiency (excess)
-
$
-
$
-
$
-
$
Covered payroll
6,381,844
$
5,982,621
$
5,699,811
$
5,570,055
$
Contributions as a percentage of covered payroll
0.17%
0.16%
0.17%
0.14%
Reporting Fiscal Year
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedules above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Pension/OPEB Contributions
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
72
PSPRS Police-Pensions
2020
2019
2018
2017
2016
2015
2014
Actuarially determined contribution
1,331,592
$
1,183,042
$
1,365,177
$
798,249
$
809,325
$
593,877
$
531,345
$
Contributions in relation to the actuarially
determined contribution
(1,331,592)
(1,583,042)
(1,365,177)
(798,249)
(809,325)
(593,877)
(531,345)
Contribution deficiency (excess)
-
$
(400,000)
$
-
$
-
$
-
$
-
$
-
$
Covered payroll
3,188,140
$
3,162,313
$
2,733,357
$
2,824,133
$
2,968,270
$
2,769,201
$
2,738,836
$
Contributions as a percentage of covered
payroll
41.77%
50.06%
49.95%
28.27%
27.27%
21.45%
19.40%
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension
schedule above. Additional information will be displayed as it becomes available.
PSPRS Police
Health Insurance Premium Benefit
2020
2019
2018
2017
Actuarially determined contribution
14,704
$
12,412
$
6,289
$
11,219
$
Contributions in relation to the actuarially
determined contribution
(14,704)
(12,412)
(6,289)
(11,219)
Contribution deficiency (excess)
-
$
-
$
-
$
-
$
Covered payroll
3,188,140
$
3,162,313
$
2,733,357
$
2,824,133
$
Contributions as a percentage of covered
payroll
0.46%
0.39%
0.23%
0.40%
Reporting Fiscal Year
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedule above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Schedule of Pension/OPEB Contributions
June 30, 2020
See accompanying notes to pension/OPEB plan schedules
73
PSPRS Fire-Pensions
2020
2019
2018
2017
2016
2015
2014
Actuarially determined contribution
458,757
$
400,812
$
668,971
$
330,799
$
281,360
$
225,909
$
258,272
$
Contributions in relation to the actuarially
determined contribution
(458,757)
(800,812)
(668,971)
(330,799)
(281,360)
(225,909)
(258,272)
Contribution deficiency (excess)
-
$
(400,000)
$
-
$
-
$
-
$
-
$
-
$
Covered payroll
1,898,523
$
1,773,739
$
1,812,916
$
1,725,504
$
1,687,430
$
1,765,349
$
1,735,840
$
Contributions as a percentage of covered
payroll
24.16%
45.15%
36.90%
19.17%
16.67%
12.80%
14.88%
Reporting Fiscal Year
Note: In accordance with GASB 68, employers will need to disclose a 10-year history for the pension
schedule above. Additional information will be displayed as it becomes available.
PSPRS Fire
Health Insurance Premium Benefit
2020
2019
2018
2017
Actuarially determined contribution
4,369
$
3,492
$
4,208
$
5,693
$
Contributions in relation to the actuarially
determined contribution
(4,369)
(3,492)
(4,208)
(5,693)
Contribution deficiency (excess)
-
$
-
$
-
$
-
$
Covered payroll
1,898,523
$
1,773,739
$
1,812,916
$
1,725,504
$
Contributions as a percentage of covered
payroll
0.23%
0.20%
0.23%
0.00%
Reporting Fiscal Year
Note: In accordance with GASB 75, employers will need to disclose a 10-year history for the OPEB
schedule above. Additional information will be displayed as it becomes available.
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Notes to Pension/OPEB Plan Schedules
June 30, 2020
74
Note 1.
Actuarially Determined Contribution Rates
Actuarially 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:
Actuarial cost method
Entry Age Normal
Amortization Method
Level Percent of Pay, Closed
Remaining Amortization Period
As of the 2018 actuarial valuation
18 years for underfunded liabilities; 20 years for excess
Asset valuation method
7-Year smoothed market; 80%/120% market corridor
Actuarial assumptions:
Investment rate of return
Members with initial membership date before July 1,
2018: In the 2017 actuarial valuation, the investment
rate of return was decreased from 7.5% to 7.4%. In the
2016 actuarial valuation, the investment rate of return
decreased from 7.85% to 7.5%. In the 2013 actuarial
valuation, the investment rate of return decreased from
8.0% to 7.85%.
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, the 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 2017 actuarial valuation, wage growth was
decreased from 4% to 3.5%. In the 2014 actuarial
valuation, wage growth was decreased from 4.5% to
4.0%. In the 2013 actuarial valuation, wage growth was
decreased from 5.0% to 4.5%
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 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)
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Notes to Pension/OPEB Plan Schedules
June 30, 2020
75
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 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 2020 to
cover members who retired or will retire after the law’s effective date.
76
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77
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
FOR THE FOLLOWING MAJOR FUNDS:
x
The General Fund is the City’s primary operating fund. It accounts for all financial resources of
the general government, except for those accounted for in another fund.
x
The Special Projects Fund is used to account for the funding for various City special projects
CITY OF EL MIRAGE, ARIZONA
GENERAL FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
See accompanying notes to budgetary comparison schedule
78
Non-GAAP
Variance with
Original
Final
Actual
Final Budget
REVENUES
Taxes:
City sales tax
8,150,000
$
8,150,000
$
11,673,068
$
3,523,068
$
Property taxes
2,250,000
2,250,000
2,216,903
(33,097)
Franchise taxes
780,000
780,000
696,912
(83,088)
Total taxes
11,180,000
11,180,000
14,586,883
3,406,883
Licenses and permits
290,000
290,000
837,063
547,063
Intergovernmental revenues:
State sales tax
3,650,000
3,650,000
3,685,053
35,053
Auto lieu tax
1,575,000
1,575,000
1,513,994
(61,006)
Urban revenue sharing
4,625,000
4,625,000
4,612,648
(12,352)
Other intergovernmental revenues
45,000
45,000
46,154
1,154
Total intergovernmental
9,895,000
9,895,000
9,857,849
(37,151)
Charges for services
225,000
225,000
277,748
52,748
Fees
535,000
535,000
1,040,871
505,871
Fines and forfeitures
25,000
25,000
24,085
(915)
Interest earnings
600,000
600,000
508,643
(91,357)
Other revenues:
Contributions and donations
-
-
3,389
3,389
Miscellaneous revenues
10,000
10,000
195,671
185,671
Total other revenues
10,000
10,000
199,060
189,060
Total revenues
22,760,000
22,760,000
27,332,202
4,572,202
EXPENDITURES
Current:
General government:
Administration
1,113,500
933,500
751,621
181,879
Building safety
442,000
442,000
331,372
110,628
City clerk
217,000
217,000
205,803
11,197
Code compliance
256,500
256,500
228,323
28,177
Community development
465,000
465,000
413,511
51,489
Economic development
142,000
142,000
131,704
10,296
Engineering
426,000
426,000
413,218
12,782
Facilities maintenance
799,000
799,000
699,620
99,380
Finance
923,500
923,500
770,013
153,487
Fleet
194,000
194,000
185,090
8,910
Human resources
440,500
440,500
384,735
55,765
Information systems
800,000
800,000
755,057
44,943
Mayor and council
287,500
287,500
218,443
69,057
Nondepartmental
1,405,500
1,405,500
976,359
429,141
Parks
826,500
826,500
763,782
62,718
Senior center
-
-
2,100
(2,100)
Speical events
-
180,000
155,297
24,703
Total general government
8,738,500
8,738,500
7,386,048
1,352,452
(Continued)
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
GENERAL FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Continued)
For the Year Ended June 30, 2020
See accompanying notes to budgetary comparison schedule
79
Non-GAAP
Variance with
Original
Final
Actual
Final Budget
Public safety:
Police
9,217,000
9,217,000
7,205,777
2,011,223
Fire
4,030,000
4,030,000
3,300,685
729,315
Total public safety
13,247,000
13,247,000
10,506,462
2,740,538
Capital outlay
1,787,000
1,812,000
845,749
966,251
Debt Service
Principal
164,000
2,164,000
2,308,750
(144,750)
Interest and fiscal charges
121,000
121,000
114,100
6,900
285,000
2,285,000
2,422,850
(137,850)
Total expenditures
24,057,500
26,082,500
21,161,109
4,921,391
Excess (deficiency) of revenues over expenditures
(1,297,500)
(3,322,500)
6,171,093
9,493,593
OTHER FINANCING SOURCES (USES)
Sale of assets
15,000
15,000
31,307
16,307
Transfers out
(11,428,000)
(11,428,000)
(11,428,000)
-
Transfers in
3,280,000
3,280,000
3,768,642
488,642
Total other financing sources and (uses)
(8,133,000)
(8,133,000)
(7,628,051)
504,949
Net change in fund balance
(9,430,500)
(11,455,500)
(1,456,958)
9,998,542
Fund balance, beginning of year
28,338,500
28,338,500
33,195,773
(4,857,273)
Fund balance, end of year
18,908,000
$
16,883,000
$
31,738,815
$
5,141,269
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
Required Supplementary Information
Notes to General Fund Budget and Actual Schedules
June 30, 2020
80
The City budget is prepared on a basis consistent with accounting principles generally accepted in the
United States of America, except for certain activities reported in the General Fund that are budgeted
separately in a special revenue fund.
The following schedule reconciles the General Fund Non-GAAP Budget and Actual report to the
Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund:
Total
Total
Fund Balance
Revenues
Expenditures
End of Year
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Non-GAAP
27,332,202
$
21,161,109
$
31,738,815
$
Activity budgeted as Court Special Revenue Fund
464,056
691,343
426,359
Statement of Revenues, Expenditures and Changes in
Fund Balances - General Fund - GAAP
27,796,258
$
21,852,452
$
32,165,174
$
General Fund
CITY OF EL MIRAGE, ARIZONA
SPECIAL PROJECTS
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
81
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenue
1,511,000
$
1,511,000
$
3,287,716
$
1,776,716
$
Investment earnings
-
-
1,497
1,497
Other revenues
10,000,000
10,000,000
-
(10,000,000)
Total revenues
11,511,000
11,511,000
3,289,213
(8,221,787)
EXPENDITURES
Current:
General government
10,139,000
8,487,500
13,829
8,473,671
Public safety
737,000
737,000
3,017,348
(2,280,348)
Capital outlay
735,000
735,000
185,000
550,000
Total expenditures
11,611,000
9,959,500
3,216,177
6,743,323
Excess (deficiency) of revenues
over (under) expenditures
(100,000)
1,551,500
73,036
(1,478,464)
OTHER FINANCING
SOURCES (USES)
Transfers in
100,000
100,000
100,000
-
Total other financing
sources (uses)
100,000
100,000
100,000
-
Net change in fund balance
-
1,651,500
173,036
(1,478,464)
Fund balance, beginning of year
-
-
43,478
43,478
Fund balance (deficit), end of year
-
$
1,651,500
$
216,514
$
(1,434,986)
$
Budgeted Amounts
82
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83
SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Capital Project Funds
Capital Project Funds are used to account for the purchase or construction of capital assets which are not
financed by the general, special revenue or enterprise funds.
x
The Streets (Capital Projects fund) is used to account for the construction and acquisition of
streets and street department facilities.
CITY OF EL MIRAGE, ARIZONA
STREETS (CAPITAL PROJECTS FUND)
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
84
Variance with
Original
Final
Actual
Final Budget
REVENUES
Investment earnings
50,000
$
50,000
$
230,608
$
180,608
$
Other revenues
-
-
2,070,878
2,070,878
Total revenues
50,000
50,000
2,301,486
2,251,486
EXPENDITURES
Current:
Public works/streets
500,000
500,000
500,000
-
Capital outlay
14,507,500
14,505,500
861,995
13,643,505
Debt service:
Principal
491,500
491,500
6,926,250
(6,434,750)
Interest and fiscal charges
360,500
360,500
342,300
18,200
Total expenditures
15,859,500
15,857,500
8,630,545
7,226,955
Excess (deficiency) of revenues
over (under) expenditures
(15,809,500)
(15,807,500)
(6,329,059)
9,478,441
OTHER FINANCING
SOURCES (USES)
Transfers in
10,114,000
10,114,000
10,114,000
-
Total other financing
Sources (Uses)
10,114,000
10,114,000
10,114,000
-
Net change in fund balances
(5,695,500)
(5,693,500)
3,784,941
9,478,441
Fund balance, beginning of year
5,695,500
5,695,500
10,763,177
5,067,677
Fund balance (deficit), end of year
-
$
2,000
$
14,548,118
$
14,546,118
$
Budgeted Amounts
85
SUPPLEMENTARY INFORMATION
COMBINING STATEMENTS
AND BUDGETARY COMPARISON SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures
for a particular purpose.
x
The Municipal Court Enhancement fund is used to account for the technology and functional
improvements of court operations.
x
The Court Photo Enforcement fund is used to account for operations of the City’s photo
enforcement.
x
The Dial-A-Ride (LTAF) fund is used to account for state funding for taxi voucher service and
street construction.
x
The Police Towing fund is used to account for charges for services to be used to enhance police
department operations.
x
The Community Development Block Grant fund is used to account for CDBG grant activities.
x
The Streets (HURF) Fund is used to account for state shared highway use tax revenues for street
improvements, maintenance, and capital additions.
Debt Service Funds
x
The Debt Service fund is used to account for the accumulation of resources and the payment of
long-term debt principal, interest, and related costs.
CITY OF EL MIRAGE, ARIZONA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2020
86
Municipal
Court
Court Photo
Dial-A-Ride
Enhancement
Enforcement
(LTAF)
ASSETS
Cash and cash equivalents
1,107,473
$
-
$
255,961
$
Receivables:
Taxes
-
-
-
Intergovernmental
-
-
-
Due from other funds
5,930
-
-
Total assets
1,113,403
$
-
$
255,961
$
LIABILITIES
Accounts payable
3,980
$
-
$
5,331
$
Accrued wages and salaries
-
-
-
Due to other funds
5,794
-
-
Total liabilities
9,774
-
5,331
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes
-
-
-
Total deferred inflows of resources
-
-
-
FUND BALANCES
Restricted:
Public safety
-
-
-
Public works/streets
-
-
250,630
Debt service
-
-
-
Committed
1,103,629
-
-
Total fund balances
1,103,629
-
250,630
Total liabilities, deferred inflows of resources,
and fund balances
1,113,403
$
-
$
255,961
$
Special Revenue
87
Community
Police
Development
Streets
Towing
Block Grant
(HURF)
Debt Service
Total
226,002
$
-
$
1,101,793
$
455,838
$
3,147,067
$
-
-
-
69,122
69,122
-
-
180,281
-
180,281
-
-
-
-
5,930
226,002
$
-
$
1,282,074
$
524,960
$
3,402,400
$
-
$
-
$
67,823
$
-
$
77,134
$
-
-
11,052
-
11,052
-
-
-
-
5,794
-
-
78,875
-
93,980
-
-
-
45,699
45,699
-
-
-
45,699
45,699
226,002
-
-
-
226,002
-
-
1,203,199
-
1,453,829
-
-
-
479,261
479,261
-
-
-
-
1,103,629
226,002
-
1,203,199
479,261
3,262,721
226,002
$
-
$
1,282,074
$
524,960
$
3,402,400
$
Special Revenue
CITY OF EL MIRAGE, ARIZONA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2020
88
Municipal
Court
Court Photo
Dial-A-Ride
Enhancement
Enforcement
(LTAF)
REVENUES
Property taxes
-
$
-
$
-
$
Intergovernmental
-
-
92,467
Fines and forfeitures
101,645
240,388
-
Investment earnings
11,378
7,815
3,284
Other revenues
-
-
-
Total revenues
113,023
248,203
95,751
EXPENDITURES
Current:
Public safety
88,643
66,328
-
Public works/streets
-
-
85,404
Capital outlay
-
-
-
Debt service:
Principal
-
-
-
Interest and fiscal charges
-
-
-
Total expenditures
88,643
66,328
85,404
Excess (deficiency) of revenues
over (under) expenditures
24,380
181,875
10,347
OTHER FINANCING
SOURCES (USES)
Transfers out
-
(638,642)
-
Transfers in
-
-
-
Total other financing
sources (uses):
-
(638,642)
-
Net change in fund balances
24,380
(456,767)
10,347
Fund balances, beginning of year
1,079,249
456,767
240,283
Fund balances, end of year
1,103,629
$
-
$
250,630
$
Special Revenue
89
Community
Police
Development
Streets
Towing
Block Grant
(HURF)
Debt Service
Total
-
$
-
$
-
$
1,975,585
$
1,975,585
$
-
-
2,525,286
-
2,617,753
43,670
-
-
-
385,703
3,233
-
12,869
12,512
51,091
-
-
-
82
82
46,903
-
2,538,155
1,988,179
5,030,214
25,713
-
-
-
180,684
-
-
2,119,171
-
2,204,575
-
-
460,772
-
460,772
-
-
-
1,190,000
1,190,000
-
-
-
912,288
912,288
25,713
-
2,579,943
2,102,288
4,948,319
21,190
-
(41,788)
(114,109)
81,895
-
-
-
-
(638,642)
-
-
856,500
100,000
956,500
-
-
856,500
100,000
317,858
21,190
-
814,712
(14,109)
399,753
204,812
-
388,487
493,370
2,862,968
226,002
$
-
$
1,203,199
$
479,261
$
3,262,721
$
Special Revenue
CITY OF EL MIRAGE, ARIZONA
MUNICIPAL COURT ENCHANCEMENT
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
90
Variance with
Original
Final
Actual
Final Budget
REVENUES
Fines and forfeitures
60,000
$
60,000
$
101,645
$
41,645
$
Investment earnings
15,000
15,000
11,378
(3,622)
Total revenues
75,000
75,000
113,023
38,023
EXPENDITURES
Current:
Public safety
100,500
100,500
88,643
11,857
Captial outlay
550,000
550,000
-
550,000
Total expenditures
650,500
650,500
88,643
561,857
Excess (deficiency) of revenues
over (under) expenditures
(575,500)
(575,500)
24,380
599,880
Fund balance, beginning of year
1,058,500
1,058,500
1,079,249
20,749
Fund balance, end of year
483,000
$
483,000
$
1,103,629
$
620,629
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
COURT PHOTO ENFORCEMENT
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
91
Variance with
Original
Final
Actual
Final Budget
REVENUES
Fines and forfeitures
105,000
$
105,000
$
240,388
$
135,388
$
Investment earnings
-
-
7,815
7,815
Total revenues
105,000
105,000
248,203
143,203
EXPENDITURES
Current:
Public safety
122,000
122,000
66,328
55,672
Total expenditures
122,000
122,000
66,328
55,672
Excess (deficiency) of revenues
over (under) expenditures
(17,000)
(17,000)
181,875
198,875
OTHER FINANCING
SOURCES (USES)
Transfers out
(150,000)
(150,000)
(638,642)
(488,642)
Total other financing
sources (uses)
(150,000)
(150,000)
(638,642)
(488,642)
Net change in fund balances
(167,000)
(167,000)
(456,767)
(289,767)
Fund balance, beginning of year
167,000
167,000
456,767
289,767
Fund balance, end of year
-
$
-
$
-
$
-
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
DIAL-A-RIDE (LTAF)
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
92
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenue
95,000
$
95,000
$
92,467
$
(2,533)
$
Investment earnings
-
-
3,284
3,284
Total revenues
95,000
95,000
95,751
751
EXPENDITURES
Current:
Public works/streets
137,000
137,000
85,404
51,596
Total expenditures
137,000
137,000
85,404
51,596
Excess (deficiency) of revenues
over (under) expenditures
(42,000)
(42,000)
10,347
52,347
Fund balance, beginning of year
42,000
42,000
240,283
198,283
Fund balance (deficit), end of year
-
$
-
$
250,630
$
250,630
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
POLICE TOWING
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
93
Variance with
Original
Final
Actual
Final Budget
REVENUES
Fines and forfeitures
25,000
$
25,000
$
43,670
$
18,670
$
Investment earnings
-
-
3,233
3,233
Total revenues
25,000
25,000
46,903
21,903
EXPENDITURES
Current:
Public safety
54,000
54,000
25,713
28,287
Total expenditures
54,000
54,000
25,713
28,287
Excess (deficiency) of revenues
over (under) expenditures
(29,000)
(29,000)
21,190
50,190
Fund balance, beginning of year
35,000
35,000
204,812
169,812
Fund balance, end of year
6,000
$
6,000
$
226,002
$
220,002
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
COMMUNITY DEVELOPMENT BLOCK GRANT
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
94
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenue
500,000
$
500,000
$
-
$
(500,000)
$
Total revenues
500,000
500,000
-
(500,000)
EXPENDITURES
Capital outlay
847,000
847,000
-
847,000
Total expenditures
847,000
847,000
-
847,000
Excess (deficiency) of revenues
over (under) expenditures
(347,000)
(347,000)
-
347,000
Fund balance, beginning of year
347,000
347,000
-
(347,000)
Fund balance, end of year
-
$
-
$
-
$
-
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
STREETS (HURF)
SPECIAL REVENUE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
95
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenue
2,350,000
$
2,350,000
$
2,525,286
$
175,286
$
Investment earnings
-
-
12,869
12,869
Total revenues
2,350,000
2,350,000
2,538,155
175,286
EXPENDITURES
Current:
Public works/streets
1,685,500
1,685,500
2,119,171
(433,671)
Capital outlay
1,622,000
1,546,000
460,772
1,085,228
Total expenditures
3,307,500
3,231,500
2,579,943
651,557
Excess (deficiency) of revenues
over (under) expenditures
(957,500)
(881,500)
(41,788)
839,712
OTHER FINANCING
SOURCES (USES)
Transfers in
856,500
856,500
856,500
-
Total other financing
sources (uses)
856,500
856,500
856,500
-
Net change in fund balance
(101,000)
(25,000)
814,712
839,712
Fund balance, beginning of year
101,000
101,000
388,487
287,487
Fund balance, end of year
-
$
76,000
$
1,203,199
$
1,127,199
$
Budgeted Amounts
CITY OF EL MIRAGE, ARIZONA
DEBT SERVICE FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2020
96
Variance with
Original
Final
Actual
Final Budget
REVENUES
Property taxes
2,030,000
$
2,030,000
$
1,975,585
$
(54,415)
$
Investment earnings
10,000
10,000
12,512
2,512
Other revenues
-
-
82
82
Total revenues
2,040,000
2,040,000
1,988,179
(51,821)
EXPENDITURES
Debt service
Principal
1,190,000
1,190,000
1,190,000
-
Interest and fiscal charges
976,500
976,500
912,288
64,212
Total expenditures
2,166,500
2,166,500
2,102,288
64,212
Excess (deficiency) of revenues
over (under) expenditures
(126,500)
(126,500)
(114,109)
12,391
OTHER FINANCING
SOURCES (USES)
Transfers in
100,000
100,000
100,000
-
Total other financing
sources (uses)
100,000
100,000
100,000
-
Net change in fund balance
(26,500)
(26,500)
(14,109)
12,391
Fund balance, beginning of year
407,000
407,000
493,370
86,370
Fund balance, end of year
380,500
$
380,500
$
479,261
$
98,761
$
Budgeted Amounts
97
STATISTICAL SECTION
This part of the City of El Mirage’s comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, notes disclosures, and
required supplementary information says about the government’s overall financial health.
Contents
Page
Financial Trends ......................................................................................... 99
These schedules contain trend information to help the reader
understand how the government’s financial performance and
well being have changed over time.
Revenue Capacity ....................................................................................... 113
These schedules contain information to help the reader assess
the government’s property taxes and the most significant local
revenues source, the sales tax.
Debt Capacity ............................................................................................. 119
These schedules present information to help the reader assess
the affordability of the government’s current levels of
outstanding debt and the government’s ability to issue additional
debt in the future.
Demographic and Economic Information ................................................... 123
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
government’s financial activities take place.
Operating Information ................................................................................ 125
These schedules contain service and infrastructure data to help
the reader understand how the information in the government’s
financial report relates to the services the government provides
and the activities it performs.
98
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2020
2019
2018
2017
2016
Net Position:
Governmental activities
Net investment in capital assets
56,667,278
$
46,624,411
$
45,836,176
$
41,199,897
$
34,794,822
$
Restricted
16,923,724
12,133,608
8,409,993
9,603,813
15,546,294
Unrestricted
19,550,588
22,139,333
15,984,452
12,322,852
5,335,865
Total governmental activities net position
93,141,590
$
80,897,352
$
70,230,621
$
63,126,562
$
55,676,981
$
Business-type activities
Net investment in capital assets
29,392,545
$
29,457,397
$
27,884,333
$
27,309,076
$
24,888,693
$
Restricted
Unrestricted
28,911,120
25,538,037
23,325,153
20,063,673
19,137,165
Total business-type activities net position
58,303,665
$
54,995,434
$
51,209,486
$
47,372,749
$
44,025,858
$
Primary government
Net investment in capital assets
86,059,823
$
76,081,808
$
73,720,509
$
68,508,973
$
59,683,515
$
Restricted
16,923,724
12,133,608
8,409,993
9,603,813
15,546,294
Unrestricted
48,461,708
47,677,370
39,309,605
32,386,525
24,473,030
Total primary government net position
151,445,255
$
135,892,786
$
121,440,107
$
110,499,311
$
99,702,839
$
2015
2014
2013
2012
2011
Net Position:
Governmental activities
Net investment in capital assets
30,947,824
$
31,357,672
$
28,939,841
$
30,394,556
$
31,113,879
$
Restricted
8,155,286
9,768,498
15,870,123
3,787,197
1,640,241
Unrestricted
8,709,862
12,788,899
7,656,179
13,128,085
11,952,271
Total governmental activities net position
47,812,972
$
53,915,069
$
52,466,143
$
47,309,838
$
44,706,391
$
Business-type activities
Net investment in capital assets
24,691,276
$
25,975,719
$
29,473,825
$
31,646,838
$
29,826,764
$
Restricted
Unrestricted
15,330,216
11,634,797
5,487,935
1,010,211
2,808,527
Total business-type activities net position
40,021,492
$
37,610,516
$
34,961,760
$
32,657,049
$
32,635,291
$
Primary government
Net investment in capital assets
55,639,100
$
57,333,391
$
58,413,666
$
62,041,394
$
60,940,643
$
Restricted
8,155,286
9,768,498
15,870,123
3,787,197
1,640,241
Unrestricted
24,040,078
24,423,696
13,144,114
14,138,296
14,760,798
Total primary government net position
87,834,464
$
91,525,585
$
87,427,903
$
79,966,887
$
77,341,682
$
CITY OF EL MIRAGE, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
(Accrual basis of accounting)
The source of this information is the City's financial records.
Source:
Page 99
99
2020
2019
2018
2017
2016
Governmental activities:
General government
8,185,259
$
7,193,712
$
6,994,848
$
7,056,222
$
5,793,877
$
Public safety
15,777,067
13,367,955
11,935,458
13,162,982
11,167,283
Highways and streets
4,465,392
4,464,599
3,372,194
3,492,003
3,367,393
Culture and recreation
443,385
1,265,719
1,255,915
1,231,510
1,739,508
Redevelopment and housing
Health and welfare
395,627
Interest on long-term debt
483,363
1,299,795
1,242,059
1,630,076
1,428,706
Total governmental activities expenses
29,354,466
27,591,780
24,800,474
26,572,793
23,892,394
Business-type activities:
Water and sewer
$
$
$
$
$
Water
6,005,567
5,711,196
5,580,755
5,801,324
5,470,323
Sewer
2,684,309
2,482,493
2,415,160
2,434,685
2,364,833
Solid waste
1,075,446
1,086,988
1,135,506
1,090,678
1,076,709
Total business-type activities expenses
9,765,322
9,280,677
9,131,421
9,326,687
8,911,865
Total primary government expenses
39,119,788
$
36,872,457
$
33,931,895
$
35,899,480
$
32,804,259
$
The source of this information is the District's financial records.
The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore
only six years are shown.
(Continued)
Note:
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES EXPENSE
Source:
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Fiscal Year Ended June 30
Expenses
Page 100
100
2015
2014
2013
2012
2011
Expenses
Governmental activities:
General government
5,563,291
$
6,066,519
$
5,740,420
$
5,217,013
$
5,559,107
$
Public safety
11,638,718
11,083,112
10,474,809
10,207,265
9,899,205
Highways and streets
2,998,087
3,391,878
2,224,551
2,386,465
3,692,419
Culture and recreation
1,739,595
1,594,482
1,463,716
1,243,125
1,563,881
Redevelopment and housing
105,336
557,830
Health and welfare
395,627
395,851
396,127
469,933
497,956
Interest on long-term debt
1,080,786
1,111,716
1,118,359
623,167
646,132
Total governmental activities expenses
23,416,104
23,643,558
21,417,982
20,252,304
22,416,530
Business-type activities:
Water and sewer
$
$
$
9,370,528
$
8,132,429
$
Water
5,687,906
9,234,221
5,369,790
Sewer
2,250,655
2,242,448
2,305,425
Solid waste
1,054,154
1,036,762
945,224
1,482,640
865,111
Total business-type activities expenses
8,992,715
12,513,431
8,620,439
10,853,168
8,997,540
Total primary government expenses
32,408,819
$
36,156,989
$
30,038,421
$
31,105,472
$
31,414,070
$
(Concluded)
Notes: (1) In fiscal year 2013 the City separated the Water and Sewer funds from a combined reporting fund into individual reporting
funds.
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES EXPENSE
The source of this information is the City's financial records.
Source:
(Accrual basis of accounting)
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
Page 101
101
2020
2019
2018
2017
2016
Program Revenues
Governmental activities:
Charges for services:
General government
2,183,952
$
2,372,111
$
1,610,087
$
1,268,421
$
2,706,401
$
Public safety
976,983
966,452
805,240
658,215
858,161
Highways and streets
2,070,878
Culture and recreation
57,486
71,474
72,206
52,160
91,431
Revelopment and housing
Health and welfare
Interest on long-term debt
Operating grants and contributions
5,939,482
3,314,161
2,941,043
2,710,165
2,725,912
Capital grants and contributions
15,530
5,137,683
1,951,817
6,747,130
4,350,917
Total governmental activities program revenues
11,244,311
11,861,881
7,380,393
11,436,091
10,732,822
Business-type activities:
Charges for services:
Water
9,055,461
$
9,245,531
$
9,656,519
$
9,529,705
$
9,544,865
$
Sewer
3,264,492
3,298,488
3,243,532
3,361,689
3,164,369
Solid Waste
1,626,216
1,601,564
1,601,087
1,608,769
1,598,383
Capital grants and contributions
887,861
374,732
Total business-type activities program revenues
13,946,169
15,033,444
14,875,870
14,500,163
14,307,617
Total primary government revenues
25,190,480
$
26,895,325
$
22,256,263
$
25,936,254
$
25,040,439
$
Net (Expense)/Revenue
Governmental activities
(18,110,155)
$
(15,729,899)
$
(17,420,081)
$
(15,136,702)
$
(13,159,572)
$
Business-type activities
6,889,847
5,752,767
5,744,449
5,173,476
5,395,752
Total primary government net (expense)/revenues
(11,220,308)
$
(9,977,132)
$
(11,675,632)
$
(9,963,226)
$
(7,763,820)
$
The source of this information is the City's financial records.
(Continued)
CITY OF EL MIRAGE, ARIZONA
PROGRAM REVENUES AND NET (EXPENSE)/REVENUE
Source:
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Fiscal Year Ended June 30
Page 102
102
2015
2014
2013
2012
2011
Program Revenues
Governmental activities:
Charges for services:
General government
2,574,115
$
3,050,487
$
3,670,957
$
2,661,625
$
395,327
$
Public safety
884,433
759,473
634,969
435,437
1,005,833
Highways and streets
2,500
10,299
46,409
36,145
Culture and recreation
75,609
72,953
74,194
52,055
32,456
Revelopment and housing
96,066
128,438
Health and welfare
32,000
Interest on long-term debt
Operating grants and contributions
2,440,443
2,355,917
1,722,354
1,757,715
3,753,356
Capital grants and contributions
2,482,244
1,787,244
1,328,998
642,943
2,031,513
Total governmental activities program revenues
8,456,844
8,028,574
7,441,771
5,724,250
7,383,068
Business-type activities:
Charges for services:
Water
9,424,373
$
8,777,834
$
8,003,552
$
-
$
-
$
Sewer
3,198,445
3,127,298
3,203,962
-
-
Water and sewer
-
-
9,768,612
8,707,594
Solid Waste
1,582,522
1,558,263
1,409,148
1,267,723
1,122,709
Capital grants and contributions
Total business-type activities program revenues
14,205,340
13,463,395
12,616,662
11,036,335
9,830,303
Total primary government revenues
22,662,184
$
21,491,969
$
20,058,433
$
16,760,585
$
17,213,371
$
Net (Expense)/Revenue
Governmental activities
(14,959,260)
$
(15,614,984)
$
(13,976,211)
$
(14,528,054)
$
(15,033,462)
$
Business-type activities
5,212,625
1,471,834
3,996,223
183,167
832,763
Total primary government net (expense)/revenues
(9,746,635)
$
(14,143,150)
$
(9,979,988)
$
(14,344,887)
$
(14,200,699)
$
Source: The source of this information is the City's financial records.
(Concluded)
CITY OF EL MIRAGE, ARIZONA
PROGRAM REVENUES AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Page 103
103
2020
2019
2018
2017
2016
General Revenues:
Governmental activities:
Taxes:
Property taxes
4,169,021
$
4,295,776
$
3,678,093
$
3,683,700
$
3,663,163
$
City sales taxes
11,673,068
8,538,740
8,020,802
7,445,186
6,990,668
Franchise taxes
696,912
742,741
774,856
712,143
745,088
Unrestricted state shared revenues
9,811,695
9,353,989
9,157,332
8,604,293
8,086,986
Investment income
798,697
1,433,459
733,215
297,461
107,055
Development impact fees
Miscellaneous
-
309,537
291,357
Transfers
3,205,000
2,010,500
1,933,000
1,843,500
1,430,621
Total governmental activities
30,354,393
$
26,684,742
$
24,588,655
$
22,586,283
$
21,023,581
$
Business-type activities:
Investment income
305,058
$
43,681
$
24,865
$
16,915
$
39,235
$
Development impact fees
Miscellaneous
Transfers
(3,205,000)
(2,010,500)
(1,933,000)
(1,843,500)
(1,430,621)
Total business-type activities
(2,899,942)
$
(1,966,819)
$
(1,908,135)
$
(1,826,585)
$
(1,391,386)
$
Changes in Net Position
Governmental activities
12,244,238
$
10,666,731
$
7,168,574
$
7,449,581
$
7,864,009
$
Business-type activities
3,989,905
3,785,948
3,836,314
3,346,891
4,004,366
Total primary government
16,234,143
$
14,452,679
$
11,004,888
$
10,796,472
$
11,868,375
$
(Continued)
CITY OF EL MIRAGE, ARIZONA
GENERAL REVENUES, TRANSFERS, AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Fiscal Year Ended June 30
Page 104
104
2015
2014
2013
2012
2011
General Revenues:
Governmental activities:
Taxes:
Property taxes
3,505,551
$
3,587,541
$
3,738,856
$
3,068,722
$
2,998,935
$
City sales taxes
6,685,666
6,480,147
6,051,967
5,534,445
5,368,649
Franchise taxes
692,154
688,216
687,341
667,559
654,999
Unrestricted state shared revenues
7,970,499
7,447,112
6,914,460
6,188,822
6,620,951
Investment income
50,727
30,894
41,983
23,535
23,200
Development impact fees
49,677
Miscellaneous
Transfers
2,000,000
(1,170,000)
1,697,909
1,648,418
1,212,788
Total governmental activities
20,904,597
$
17,063,910
$
19,132,516
$
17,131,501
$
16,929,199
$
Business-type activities:
Investment income
5,764
$
6,922
$
6,397
$
5,546
$
5,116
$
Development impact fees
56,976
Miscellaneous
Transfers
(2,000,000)
1,170,000
(1,697,909)
(1,648,418)
(1,212,788)
Total business-type activities
(1,994,236)
$
1,176,922
$
(1,691,512)
$
(1,642,872)
$
(1,150,696)
$
Changes in Net Position
Governmental activities
5,945,337
$
1,448,926
$
5,156,305
$
2,603,447
$
1,895,737
$
Business-type activities
3,218,389
2,648,756
2,304,711
(1,459,705)
(317,933)
Total primary government
9,163,726
$
4,097,682
$
7,461,016
$
1,143,742
$
1,577,804
$
(Concluded)
CITY OF EL MIRAGE, ARIZONA
GENERAL REVENUES, TRANSFERS, AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
The source of this information is the City's financial records.
Fiscal Year Ended June 30
Source:
Page 105
105
2020
2019
2018
2017
2016
General Fund:
Nonspendable
89,069
$
94,526
$
100,435
$
34,042
$
2,002
$
Restricted
-
-
2,138,430
Committed
720,886
534,313
456,968
1,048,009
388,197
Assigned
426,359
321,145
338,795
201,680
316,212
Unassigned
30,928,860
32,566,934
27,711,606
22,985,787
22,848,735
Total General Fund
32,165,174
$
33,516,918
$
28,607,804
$
24,269,518
$
25,693,576
$
All Other Governmental Funds:
Nonspendable
-
$
-
$
5,102
$
5,102
$
Restricted
16,923,724
12,133,608
8,409,993
9,598,711
13,356,982
Committed
1,103,629
1,536,016
1,742,741
2,291,094
2,870,981
Assigned
Unassigned
Total all other governmental funds
18,027,353
$
13,669,624
$
10,152,734
$
11,894,907
$
16,233,065
$
(Continued)
CITY OF EL MIRAGE, ARIZONA
FUND BALANCES - GOVERNMENTAL FUNDS
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
Page 106
106
2015
2014
2013
2012
2011
General Fund:
Nonspendable
3,731
$
2,665
$
2,585
$
130,827
$
12,688
$
Restricted
158,508
Committed
322,037
151,041
80,500
59,267
170,634
Assigned
209,007
270,978
163,436
148,381
Unassigned
18,961,922
14,032,607
16,754,043
13,398,103
10,875,367
Total General Fund
19,496,697
$
14,615,799
$
16,837,128
$
13,751,633
$
11,207,070
$
All Other Governmental Funds:
Nonspendable
400
$
Restricted
8,118,790
$
9,567,702
$
15,824,795
$
4,395,075
$
5,907,367
$
Committed
3,150,260
3,688,958
3,346,167
989,644
914,719
Assigned
26,868
75,651
Unassigned
(54,168)
(73,300)
Total all other governmental funds
11,269,450
$
13,283,528
$
19,170,962
$
5,330,551
$
6,824,437
$
Source:
(Concluded)
The source of this information is the City's financial records.
CITY OF EL MIRAGE, ARIZONA
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
Page 107
107
2020
2019
2018
2017
2016
Revenues:
Property taxes
4,192,488
$
4,295,776
$
3,683,118
$
3,692,071
$
3,647,913
$
City sales taxes
11,673,068
8,538,740
8,020,802
7,445,186
6,990,668
Franchise taxes
696,912
742,741
774,856
712,143
745,088
Licenses and permits
837,063
449,482
295,737
269,103
243,974
Intergovernmental
15,763,318
17,801,633
14,027,647
18,072,336
14,735,815
Charges for services
1,318,619
1,213,951
620,855
272,747
371,669
Fines and forfeits
864,969
1,417,360
1,376,994
1,220,377
2,769,074
Investment income (loss)
798,697
1,433,459
733,215
297,461
107,055
Rents
71,753
Development impact fees
Contributions and donations
41,151
Miscellaneous
2,272,037
309,537
221,632
221,746
158,372
Total revenues
38,417,171
$
36,202,679
$
29,754,856
$
29,882,532
$
27,372,499
$
(Continued)
Fiscal Year Ended June 30
(Modified accrual basis of accounting)
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
Page 108
108
2015
2014
2013
2012
2011
Revenues:
Property taxes
3,516,609
$
3,596,707
$
3,756,880
$
3,104,974
$
3,028,998
$
City sales taxes
6,685,666
6,480,147
6,051,967
5,534,445
5,368,649
Franchise taxes
692,154
688,216
687,341
667,559
654,999
Licenses and permits
344,937
333,821
369,465
193,211
190,237
Intergovernmental
12,893,186
10,862,941
10,012,341
8,503,662
12,323,411
Charges for services
441,040
300,296
224,086
208,970
190,847
Fines and forfeits
2,525,323
3,078,326
3,641,326
2,695,603
1,092,123
Investment income (loss)
50,727
30,894
41,983
23,535
23,199
Rents
67,487
61,854
49,029
34,952
29,486
Development impact fees
38,094
49,677
Contributions and donations
47,848
6,524
4,800
2,100
2,500
Miscellaneous
107,522
97,624
141,804
181,597
143,678
Total revenues
27,372,499
$
25,537,350
$
24,981,022
$
21,188,702
$
23,097,804
$
(Concluded)
Source: The source of this information is the City's financial records.
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
Page 109
109
2020
2019
2018
2017
2016
Expenditures:
Current -
General government
7,399,877
$
6,617,738
$
6,327,081
$
6,493,561
$
5,427,402
$
Public safety*
14,395,837
13,684,610
10,912,583
10,757,510
10,785,548
Highways and streets
2,704,575
2,855,137
2,481,258
2,562,531
2,450,730
Culture and recreation**
854,348
840,136
794,042
1,314,039
Redevelopment and housing
Health and welfare
Capital outlay
2,353,516
3,044,751
5,573,151
16,507,748
11,578,785
Debt service -
Principal retirement
10,425,000
1,785,000
1,880,000
1,075,000
1,038,074
Interest and fiscal charges
1,368,688
1,431,632
1,373,346
1,618,494
1,531,293
Bond issuance costs
186,700
-
203,349
Total expenditures
38,647,493
$
30,273,216
$
29,574,255
$
39,808,886
$
34,329,220
$
Expenditures for capitalized assets
2,353,516
$
3,044,751
$
5,581,120
$
16,507,750
$
11,636,254
$
Debt service as a percentage of
noncapital expenditures
32%
12%
14%
12%
11%
Source:
The source of this information is the District's financial records.
Notes:
*FY2019 Public Safety includes $800k spent using contigency dollars to fund Public Safety Retirement System
**FY2019 Culture and recreation includes $3,162 spent using contigency dollars to fund Council initiative " El Mirage Cares"
(Continued)
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
Page 110
110
2015
2014
2013
2012
2011
Expenditures:
Current -
General government
5,285,104
$
5,243,949
$
5,461,931
$
4,876,034
$
5,407,094
$
Public safety
10,713,942
10,364,107
10,050,592
9,469,637
9,366,020
Highways and streets
2,057,440
2,510,736
1,121,260
1,308,612
1,084,093
Culture and recreation
1,315,472
1,283,670
1,158,665
954,131
1,292,708
Redevelopment and housing
53,003
535,952
Health and welfare
5,370
101,698
Capital outlay
5,018,031
10,979,663
5,600,612
4,201,944
3,363,750
Debt service -
Principal retirement
1,007,829
971,329
932,252
630,868
609,599
Interest and fiscal charges
1,107,861
1,138,791
1,117,939
615,426
638,391
Bond issuance costs
380,705
Total expenditures
26,505,679
$
32,492,245
$
25,823,956
$
22,115,025
$
22,399,305
$
Expenditures for capitalized assets
5,007,725
$
10,969,912
$
4,943,382
$
3,470,798
$
818,462
$
Debt service as a percentage of
noncapital expenditures
10%
10%
12%
7%
6%
Source:
(Concluded)
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
The source of this information is the City's financial records.
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
Page 111
111
2020
2019
2018
2017
2016
Excess (deficiency) of
revenues over expenditures
(230,322)
$
5,929,463
$
180,601
$
(7,605,716)
$
(4,446,688)
$
Other financing sources (uses):
Issuance of bonds
8,385,000
-
12,470,000
Premium on sale of bonds
881,581
-
1,132,682
Discount on sale of bonds
Payment to refunded bond escrow agent
(9,073,030)
Sale of assets
31,307
486,041
288,961
Capital lease agreements
Transfers in
14,939,142
4,501,500
5,252,508
4,299,991
4,558,633
Transfers out
(11,734,142)
(2,491,000)
(3,319,508)
(2,456,491)
(2,554,133)
Total other financing sources (uses)
3,236,307
2,496,541
2,415,512
1,843,500
15,607,182
Changes in fund balances
3,005,985
$
8,426,004
$
2,596,113
$
(5,762,216)
$
11,160,494
$
2015
2014
2013
2012
2011
Excess (deficiency) of
revenues over expenditures
866,820
$
(6,954,895)
$
(842,934)
$
(926,323)
$
698,499
$
Other financing sources (uses):
Issuance of bonds
18,205,000
Premium on sale of bonds
864,326
Discount on sale of bonds
Payment to refunded bond escrow agent
(3,363,986)
Sale of assets
Capital lease agreements
16,132
Transfers in
4,628,554
8,224,707
2,936,500
2,764,716
2,726,317
Transfers out
(2,628,554)
(9,394,707)
(873,000)
(787,716)
(931,317)
Total other financing sources (uses)
2,000,000
(1,153,868)
17,768,840
1,977,000
1,795,000
Changes in fund balances
2,866,820
$
(8,108,763)
$
16,925,906
$
1,050,677
$
2,493,499
$
Source: The source of this information is the City's financial records.
CITY OF EL MIRAGE, ARIZONA
OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
(Modified accrual basis of accounting)
Page 112
112
2020
2019
2018
2017
2016
Construction
2,422,165
$
563,521
$
568,288
$
510,571
$
376,265
$
Retail trade
5,127,687
4,123,416
3,969,173
3,756,157
3,067,046
Communications and utilities
1,176,867
1,286,327
1,296,524
1,244,929
1,347,177
Restaurant and bar
380,627
382,105
363,693
336,090
299,083
Real estate, rental and leasing
2,082,355
1,835,406
1,546,723
1,326,679
973,584
Accomodation
18,666
-
-
-
162,821
Services
42,078
-
-
-
140,777
Other
407,574
320,871
273,408
207,683
509,391
Total
11,658,020
$
8,511,646
$
8,017,809
$
7,382,109
$
6,876,144
$
2015
2014
2013
2012
2011
Construction
246,914
$
353,889
$
210,964
$
238,256
$
220,055
$
Retail trade
3,082,885
2,830,200
2,765,499
2,517,612
2,518,800
Communications and utilities
1,375,321
1,308,741
1,305,915
1,234,096
1,214,447
Restaurant and bar
262,924
232,918
248,927
250,297
229,159
Real estate, rental and leasing
1,048,292
1,060,021
942,324
673,735
585,101
Accomodation
180,105
182,758
160,274
175,383
161,364
Services
116,345
132,962
142,586
117,129
99,732
Other
363,134
362,329
277,488
256,347
225,765
Total
6,675,920
$
6,463,818
$
6,053,977
$
5,462,855
$
5,254,423
$
Source:
The source of this information is the Arizona Department of Revenue.
Arizona Department of Revenue changed its way of reporting number of filers and categories effective June 2016.
CITY OF EL MIRAGE, ARIZONA
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS
Fiscal Year
Page 113
113
Fiscal Year 2020
Fiscal Year 2011
Number of
Filers
Percentage
of Total
Tax
Collections
Percentage
of Total
Number of
Filers
Percentage
of Total
Tax
Collections
Percentage
of Total
Description of Payers Business
Construction
58
2%
2,422,165
$
21%
709
24%
220,055
$
4%
Retail trade
1,597
51%
5,127,687
44%
649
22%
2,518,800
48%
Communications and utilities
78
2%
1,176,867
10%
94
3%
1,214,447
23%
Restaurant and bar
24
1%
380,628
3%
32
1%
229,159
4%
Real estate, rental and leasing
806
26%
2,082,355
18%
667
22%
585,101
11%
Accomodation
6
0%
18,666
0%
2
0%
161,364
3%
Services
7
17%
42,078
3%
256
9%
99,732
2%
Other
546
17%
407,574
3%
598
20%
225,765
4%
Total
3,122
100%
11,658,020
$
100%
3,007
100%
5,254,423
$
100%
Tax Collections from top ten taxpayers
10
<1%
7,245,836
62%
10
<1%
3,285,294
63%
Source: Arizona Department of Revenue
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide
alternative information regarding the sources of the state's revenue.
Arizona Department of Revenue collections only, does not include local audits.
Arizona Department of Revenue changed its way of reporting number of filers and categories effective June 2016.
CITY OF EL MIRAGE, ARIZONA
TRANSACTION PRIVILEGE (SALES) TAX REVENUE PAYERS BY INDUSTRY
FISCAL YEARS 2020 AND 2011
Page 114
114
Fiscal
Year
General
Ended
Basic
Obligation
City of
Peoria
Dysart #89
June 30
Rate
Debt Service
El Mirage
Unorganized
Unified
2020
1.98
1.76
3.74
15.68
21.74
2019
2.06
1.90
3.96
16.15
22.51
2018
1.63
2.00
3.63
15.56
21.95
2017
1.70
2.08
3.78
16.00
22.42
2016
1.73
2.12
3.85
16.08
22.04
2015
1.74
1.80
3.54
15.66
22.09
2014
1.86
2.18
4.04
16.24
23.25
2013
1.86
2.03
3.89
15.35
22.44
2012
1.67
1.20
2.87
13.41
18.67
2011
1.35
0.94
2.29
11.00
15.94
Source:
The source of this information is the Maricopa County Department of Finance Annual Tax Rate Report.
Note:
The City rounds the rate to two digits from the four presented by the County.
CITY OF EL MIRAGE, ARIZONA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Overlapping Rates
Direct Rates
Page 115
115
Fiscal
Primary
Primary Taxes
Year
Taxes Levied
Collected in
Ended
for the
Subsequent
June 30
Fiscal Year
Amount
Fiscal Years (2)
Amount
2020
2,226,252
$
2,169,120
$
97.43
2,169,120
$
97.43 %
2019
2,257,335
2,185,480
96.82 %
65,469
$
2,185,480
96.82
2018
1,656,452
1,624,691
98.08
28,435
1,653,126
99.80
2017
1,659,775
1,611,809
97.11
38,187
1,649,996
99.41
2016
1,661,854
1,614,373
97.14
30,708
1,645,081
98.99
2015
1,654,937
1,570,135
94.88
30,317
1,600,452
96.71
2014
1,663,972
1,608,532
96.24
33,209
1,641,741
98.66
2013
1,784,458
1,717,299
96.37
63,540
1,780,839
99.80
2012
1,784,422
1,719,599
94.90
60,919
1,780,518
99.78
2011
1,756,305
1,666,807
95.46
77,575
1,744,382
99.32
Source:
Notes: 1)
2) Includes collections and resolutions.
Amounts collected are on a cash basis.
The source of this information is the Maricopa County Treasurer- Secured Levy Report.
of Levy
Percentage
of Levy
Percentage
Fiscal Year of the Levy
Collected within the
of the Current Fiscal Year
CITY OF EL MIRAGE, ARIZONA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected to the End
Primary Taxes
Primary Taxes
Page 116
116
Fiscal
Year
Assessed Value
Assessed Value
Less:
Total Taxable
Total
Estimated
Ended
Residential
Commercial
Tax Exempt
Assessed
Direct
Actual
June 30
Property
Property
Real Property
Valuation
Tax Rate
Taxable Value
2020
142,385,468
$
59,999,475
$
23,971,020
$
178,413,923
$
3.7438
1,793,206,477
$
9.95 %
2019
129,515,106
54,520,047
23,514,110
160,521,043
3.9610
1,632,991,596
9.83 %
2018
112,870,585
52,180,577
23,551,578
141,499,584
3.6337
1,451,693,976
9.75
2017
105,602,966
48,744,113
22,985,968
131,361,111
3.7834
1,359,620,899
9.66
2016
101,978,841
44,831,478
20,199,683
126,610,636
3.8440
1,286,131,251
9.84
2015
74,983,878
44,634,235
18,393,917
101,224,196
3.5406
1,012,776,750
9.99
2014
57,040,759
41,454,636
17,329,628
81,165,767
4.0400
810,973,826
10.01
2013
60,334,448
39,588,129
11,598,951
88,323,626
3.8900
814,853,756
10.84
2012
66,285,384
44,371,128
12,947,874
97,708,638
2.8740
912,660,076
10.71
2011
82,991,005
62,613,120
14,825,157
130,778,968
2.2939
1,151,047,161
11.36
Source:
CITY OF EL MIRAGE, ARIZONA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Ratio of
The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Net Assessed
to Estimated
Actual Value
Real Property
Page 117
117
Net Assessed
Full Cash Value
Rank
Net Assessed
Full Cash Value
Rank
ARIZONA PUBLIC SERVICE COMPANY
4,567,815
$
1
2.85%
ARIZONA PUBLIC SERVICE COMPANY
3,839,970.00
$
1
2.15%
WAL MART STORES INC
3,154,752
2
1.97%
ROBERTS PROPERTIES LTD
2,822,457
2
1.58%
PUEBLO EL MIRAGE LLC
3,072,391
3
1.91%
WAL MART STORES INC
2,385,057
3
1.34%
PIPE PORTFOLIO OWNER (MULTI) LP
2,977,517
4
1.85%
HANSON PIPE & PRODUCTS INC
2,380,530
4
1.33%
CLAYTON HOMES INC
2,173,885
5
1.35%
CLAYTON HOMES INC
1,617,732
5
0.91%
BNSF RAILWAY COMPANY
1,684,439
6
1.05%
QWEST CORPORATION
1,596,759
6
0.89%
COYOTE PASS RV AND MINI STORAGE LLC
1,417,428
7
0.88%
BNSF RAILWAY COMPANY
1,588,920
7
0.89%
CIVES CORPORATION
1,353,096
8
0.84%
PREMIERE RV & MINI STORAGE LLC
993,040
8
0.56%
ARIZONA SAND & ROCK CO
1,207,227
9
0.75%
JIA CORP
784,716
9
0.44%
MICROSOFT CORPORATION
999,375
10
0.62%
EL MIRAGE DYSART INVESTORS 1 LLC
768,058
10
0.43%
UNION ROCK & MATERIAL CORP
932,274
11
0.58%
ARIZONA SAND & ROCK CO
740,027
11
0.41%
2018-1 1H BORROWER LP
800,900
12
0.50%
MCS ENTERPRISES LLC
635,800
12
0.36%
JIA CORP
746,948
13
0.47%
AAWC: SUN CITY WATER DIVISION
620,066
13
0.35%
EPCOR (SUN CITY SEWER)
729,402
14
0.45%
SUMERLIN LLC
608,574
14
0.34%
SOUTHWEST GAS CORPORATION (T&D)
722,810
15
0.45%
UNION ROCK & MATERIAL CORP
599,338
15
0.34%
PREMIERE RV & MINI STORAGE LLC
702,396
16
0.44%
COYOTE PASS RV AND MINI STORAGE LLC
574,766
16
0.32%
REM PLAZA LLC
692,730
17
0.43%
T BAR C LAND AND CAMEL COMPANY LLC
535,475
17
0.30%
K & L DIRT COMPANY LC
660,402
18
0.41%
AAWC: SUN CITY SEWER DIVISION
533,987
18
0.30%
REALTY INCOME PROPERTIES 25 LLC
642,672
19
0.40%
JDL & COMPANY L L C
513,080
19
0.29%
EPCOR (SUN CITY WATER DIVISION)
630,538
20
0.39%
PARTNERSHIP FOR QUALITY AFFORD HOUS #1
500,000
20
0.28%
MCS ENTERPRISES LLC
626,238
21
0.39%
HANLEY PROPERTIES IV LLC
438,903
21
0.25%
THE ORCHARDS AT EL MIRAGE LLC
618,696
22
0.39%
MOYES CRAIG
437,940
22
0.25%
T BAR C LAND AND CAMEL COMPANY LLC
533,250
23
0.33%
EL MIRAGE MARKET PLACE LLC
434,483
23
0.24%
QWEST CORPORATION
464,187
24
0.29%
SOUTHWEST GAS CORPORATION (T&D)
428,876
24
0.24%
CPI EL MIRAGE OWNER LLC
445,240
25
0.28%
LJ VESTED HOLDINGS LLC
425,841
25
0.24%
Source:
The source of this information is the Maricopa County Assessor's Office- Data Request Report.
CITY OF EL MIRAGE, ARIZONA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
Percentage of
Net Assessed
Full Cash Value
2011
Taxpayer
2020
Taxpayer
Percentage of
Net Assessed
Full Cash Value
Page 118
118
Business-Type Activities
Water
Infrastructure
Fiscal
Revenue
Capital
Certificates of
Water and Sewer
Certificates of
Financing Authority
Total Primary
Percentage of
Debt Per
Year
Bonds
Leases
Participation
Revenue Bonds
Participation
Loan
Government
Personal Income
Capita
2020
22,475,911
$
-
$
-
$
$
$
$
9,665,211
$
32,141,122
$
N/A
899
2019
23,780,971
10,065,663
-
9,821,367
43,668,001
N/A
1,224
2018
25,052,723
10,771,146
-
10,912,026
46,735,895
N/A
1,327
2017
25,713,367
11,451,658
-
12,059,849
49,224,874
0.03
1,405
2016
26,750,296
11,602,682
8,900
16,523,152
54,885,030
0.03
1,617
2015
25,899,465
11,974
17,679,093
43,590,532
0.02
1,327
2014
26,943,122
14,803
18,614,362
45,572,287
0.03
1,403
2013
27,999,013
16,716,896
44,715,909
0.03
1,373
2012
13,121,296
7,252
14,220,261
27,348,809
0.02
858
2011
13,738,373
28,120
15,216,844
28,983,337
0.02
912
Source: The source of this information is the City's financial records.
Note: Details of the outstanding debt can be found in the notes to the financial statements.
Governmental Activities
General Obligation
Bonds (including
Greater Arizona
Development Authority
Loan)
CITY OF EL MIRAGE, ARIZONA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 119
119
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Percentage
of Estimated
General
Less: Amounts
Actual Taxable
Fiscal
Obligation
Available in Debt
Value of
Year
Bonds
Service Fund
Total
Property
Per Capita
2020
22,475,911
$
479,261
21,996,650
1.347 %
615
2019
23,780,971
493,370
23,287,601
1.604
653
2018
25,052,723
428,812
24,623,911
1.696
699
2017
25,713,367
431,298
25,282,069
1.859
721
2016
26,750,296
477,058
26,273,238
2.043
750
2015
25,899,465
542,227
25,357,238
2.504
772
2014
26,943,122
643,861
26,299,261
3.141
775
2013
27,999,013
695,004
27,304,009
3.367
838
2012
13,121,296
152,811
12,968,485
1.592
407
2011
13,738,373
67,028
13,671,345
1.498
430
Source:
The source of this information is the City's financial records.
Note:
N/A indicates that the information is not available.
CITY OF EL MIRAGE, ARIZONA
Page 120
120
Estimated
Estimated
Percentage
Amount
Debt
Applicable
Applicable
Outstanding
to City
to City
Debt repaid with property taxes:
Dysart Unified School District No. 89
126,583,000
$
8.7250 %
11,044,367
$
Subtotal, Overlapping Debt
11,044,367
Direct:
City of El Mirage
22,475,911
Total Direct and Overlapping Debt
33,520,278
$
Source:
Note:
CITY OF EL MIRAGE, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2020
The source of this information is the City's records and the State and County Abstract of the Assessment Roll,
Arizona Department of Revenue and the applicable governmental unit.
Governmental Unit
Estimated percentage of debt outstanding applicable to the City is calculated based on the City's secondary
assessed valuation as a percentage of the secondary assessed valuation of the overlapping jurisdiction.
Page 121
121
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Debt limit 6%
12,683,453
11,375,002
10,117,323
8,932,155
8,049,641
6,540,468
6,540,468
5,762,741
6,483,550
8,261,491
Total net debt applicable to limit
1,374,500
1,835,000
1,900,000
5,018,600
6,093,600
4,097,905
5,762,741
5,762,741
Unrestricted legal debt margin
11,308,953
9,540,002
8,217,323
3,913,555
1,956,041
2,442,563
777,727
-
6,483,550
8,261,491
Total net debt applicable to the 6% limit
as a percentage of 6% debt limit
10.84%
16.13%
18.78%
56.19%
75.70%
62.65%
88.11%
100.00%
0.00%
0.00%
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Debt limit 20%
42,278,177
37,916,673
33,724,408
29,773,849
26,832,138
21,801,560
21,804,560
19,209,136
21,611,833
27,538,305
Total net debt applicable to limit
21,101,411
22,605,000
21,695,000
19,986,400
19,986,400
21,801,560
21,180,381
22,236,272
22,236,272
27,999,013
Restricted legal debt margin
21,176,766
15,311,673
12,029,408
9,787,449
6,845,738
-
624,179
(3,027,136)
(624,439)
(460,708)
Total net debt applicable to the 20% limit
as a percentage of 20% debt limit
49.91%
59.62%
64.33%
67.13%
74.49%
100.00%
97.14%
115.76%
102.89%
101.67%
Source: Arizona Department of Revenue and Arizona State Treasurer - Bonded Indebtedness and Debt Limitations.
Note: Outstanding debt includes bond premium
Unrestricted
LAST TEN FISCAL YEARS
LEGAL DEBT MARGIN INFORMATION UNRESTRICTED AND RESTRICTED
CITY OF EL MIRAGE, ARIZONA
Restricted
Page 122
122
City of
Maricopa
Personal
El Mirage
County
Income
Per Capita
Year
Population
Population
(thousands)
Income
2020
35,753
4,485,414
$
N/A
$
N/A
9.8
%
2019
35,670
4,410,824
$
N/A
$
N/A
5.0
2018
35,216
4,307,033
$
210,370,180
$
48,843
4.9
2017
35,043
4,307,033
196,286,191
$
45,573
4.9
2016
33,935
4,233,383
185,613,641
43,845
5.5
2015
32,857
4,154,076
178,469,460
42,962
6.2
2014
32,472
4,076,708
168,450,841
41,320
7.4
2013
32,067
4,006,307
158,054,524
39,451
8.9
2012
31,862
3,939,776
154,137,019
39,123
9.7
2011
31,797
3,869,626
145,320,626
37,554
11.6
Source: The source of this information is the U.S. Census Bureau,
U.S. Department of Commerce and Arizona Office of Employment and Population Statistics.
Note: All personal income figures and per capita income are for Maricopa County.
N/A indicates that the information is not available.
Rate
Unemployment
CITY OF EL MIRAGE, ARIZONA
COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Page 123
123
Percentage
Percentage
of Total
of Total
Employees
Employment
Employees
Employment
Dysart Unified School District 89
510
13.71
%
580
17.96
%
Walmart
280
7.53
310
9.60
City of El Mirage
200
5.38
190
5.88
Dvc Construction Company Inc
160
4.30
160
4.95
CalPortland Company
150
4.03
-
Parks Sons of Sun City Inc
130
3.49
-
Bnsf Railway Co
120
3.23
100
3.10
Somerset Landscape
110
2.96
-
Southwest Steel Inc
100
2.69
-
Top Line Construction Inc
90
2.42
90
2.79
Canyon State Masonry Inc
150
4.64
Southwest Stair Inc
80
2.48
Sutter Masonry Inc
80
2.48
Littleton School District 65
80
2.48
Total
1,850
49.74
%
1,820
56.36
%
Total employment
3,720
3,230
Source: The source of this information is the City of El Mirage and Maricopa Association of Governments
Note: Amounts presented are as of December 31.
CITY OF EL MIRAGE, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
Employer
2019
2010
Page 124
124
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
General Government
34.10
29.10
30.10
30.10
31.20
31.20
29.30
23.50
24.50
26.00
Public Safety
Police
72.00
68.50
59.50
59.00
61.20
60.20
58.50
56.00
48.50
53.50
Fire
31.00
34.00
27.00
27.00
29.00
29.00
29.00
28.00
25.00
27.00
Court
10.10
11.10
9.60
8.60
13.10
13.10
12.20
13.10
10.10
9.10
Public Works
4.00
3.00
10.00
Streets
4.00
4.00
4.00
4.00
6.00
6.00
6.00
6.00
6.00
7.00
Development Services
10.30
6.00
3.00
4.00
4.00
4.00
3.00
3.00
10.25
12.75
Economic Development
1.00
1.00
1.00
Parks and Recreation
7.80
7.80
7.80
7.80
4.80
4.80
4.80
4.80
6.00
5.50
Health and Welfare
Water
13.00
18.00
18.00
18.00
16.70
16.70
18.00
18.00
18.00
11.00
Sewer
7.00
8.00
8.00
8.00
8.00
8.00
9.00
10.00
10.00
10.00
Customer Service
6.00
6.00
5.30
5.30
5.40
4.50
4.50
4.50
4.00
5.00
196.30
193.50
173.30
179.40
177.50
174.30
170.90
165.35
176.85
183.50
Source:
The source of this information is the City of El Mirage Annual Budget
CITY OF EL MIRAGE, ARIZONA
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS
Full-time Equivalent Employees as of June 30
Page 125
125
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Function/Program
Police
Stations
1
1
1
1
1
1
1
1
1
1
Patrol units
44
44
42
42
43
43
43
43
41
41
Fire
Fire stations
1
1
1
1
1
1
1
1
1
1
Fire engines and ladder trucks
3
2
3
4
3
3
3
3
3
3
Other Public Works
Street miles
248
248
248
242
240
240
240
240
240
240
Traffic signals
17
17
17
13
11
11
11
10
10
10
Community Development
Inspection vehicles
5
10
10
10
8
8
8
8
8
8
Culture and recreation
Parks acreage
52
52
52.3
52.3
52.3
52.3
52.3
44.8
44.8
9.5
Parks
13
13
13
13
13
13
13
12
12
2
Softball fields
2
2
2
2
2
2
2
2
2
3
Baseball fields
3
3
3
3
3
3
3
3
3
3
Libraries
1
1
1
1
1
1
1
1
1
1
Water
Maximum pump capacity (MGD)(1)
11.25
11.80
11.58
11.58
11.58
11.58
11.58
11.58
25.07
25.07
Total Storage (MGD)
7.76
7.76
7.36
7.36
7.36
7.36
7.36
7.36
Wells
10
10
10
10
10
10
10
10
Miles of water lines
122
121
120
120
120
120
120
120
Valves
2,750
2,636
2,621
2,626
2,626
2,514
2,501
2,501
Hydrants
1,450
1,419
1,417
1,413
1,171
1,171
1,160
1,160
Sewer
Sewer treatment plants
1
1
1
1
1
1
1
1
1
1
Maximum daily treatment capacity
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
Miles of sewer lines
64
63
63
63
63
63
63
63
(1) MGD= million gallons per day
Note:
The source of this information is the various government departments.
Source:
CITY OF EL MIRAGE, ARIZONA
CAPITAL ASSETS INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
Page 126
126
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Function/Program
Public Safety
Police
Calls/incidents responded to
33,629
27,771
26,362
28,611
28,597
29,530
29,587
29,884
32,412
37,347
Citations issued
3,820
2,542
2,465
2,263
2,241
2,246
1,807
1,825
1,785
2,549
Fire
Number of responses
4,406
4,009
4,277
4,559
4,513
4,054
4,564
3,685
3,372
2,997
Inspections
430
255
131
324
302
267
214
295
298
244
Public Works and Streets
Square feet of buildings to maintain
109,654
109,654
109,654
109,654
87,654
87,654
87,654
76,425
63,425
63,425
Vehicles/equipment maintained per month
151
149
134
125
125
123
119
113
108
108
Street miles maintained
248
248
248
242
240
240
240
240
240
240
Community Development
Building safety inspections performed
2,005
2,208
2,558
2,825
3,143
3,919
3,978
2,681
1989
2,533
Annual new residential starts
124
6
26
26
48
58
77
47
18
Water
Water accounts billed
11,728
11,517
Residential
11,020
10,858
10,471
12,741
10,308
10,447
10,630
10,015
12,787
12,029
Commercial
708
659
606
665
634
611
512
584
652
573
Acre feet of water delivered
4,986
4,696
4,790
4,829
4,543
4,612
4,415
4,426
4,460
4,246
Sewer
Sewage treated (million gallons per day)
2.00
2.00
1.81
1.92
1.93
1.87
1.87
1.87
1.87
1.77
Sewer service connections
10,730
10,630
10,628
10,620
10,614
10,606
9,077
9,077
11,754
11,284
The source of this information is the various government departments.
LAST TEN CALENDAR YEARS
OPERATING INDICATORS BY FUNCTION
CITY OF EL MIRAGE, ARIZONA
Calendar Year
Source:
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128
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129
OTHER COMMUNICATIONS FROM INDEPENDENT AUDITORS
130
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131
Independent Auditors’ Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Mayor and
City Council
El Mirage, Arizona
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of El Mirage, Arizona as of and for the year ended June 30, 2020, and the related notes to the
financial statements, which collectively comprise the City of El Mirage, Arizona’s basic financial
statements, and have issued our report thereon dated October 20, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of El Mirage,
Arizona’s internal control over financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
El Mirage, Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of
the City El Mirage, Arizona’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
132
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of El Mirage, Arizona’s financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
HintonBurdick, PLLC
Gilbert, Arizona
October 20, 2020
133
Independent Auditors’ Report on
State Legal Compliance
The Honorable Mayor and
City Council
El Mirage, Arizona
We have audited the basic financial statements of the City of El Mirage, Arizona for the year ended June
30, 2020, and have issued our report thereon dated October 20, 2020. Our audit also included test work
on the City of El Mirage’s compliance with selected requirements identified in the State of Arizona
Revised Statutes and the Arizona State Constitution including, but not limited to, Title 28, Chapter 18,
Article 2.
The management of the City of El Mirage is responsible for the City's compliance with all requirements
identified above. Our responsibility is to express an opinion on compliance with those requirements
based on our audit; accordingly, we make the following statements:
The City of El Mirage has established separate funds to account for Highway User Revenue funds
and Local Transportation Assistance funds. Highway user revenue fund monies received by the
City of El Mirage pursuant to Title 28, Chapter 18, Article 2 and other dedicated state
transportation revenues received during the current fiscal year appear to have been used solely for
authorized purposes. The funds are administered in accordance with Generally Accepted
Accounting Principles. Sources of revenues available and fund balances are reflected in the
individual fund financial statements.
Our opinion regarding the City’s compliance with annual expenditure limitations has been issued
separately with the City’s Annual Expenditure Limitation Report.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
material noncompliance with the requirements referred to above occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those requirements. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, The City of El Mirage complied, in all material respects, with the requirements identified
above for the year ended June 30, 2020.
The purpose of this report is solely to describe the scope of our testing of the applicable compliance
requirements identified in the Arizona Revised Statutes as noted above and the results of that testing
based on the state requirements. Accordingly, this report is not suitable for any other purpose.
HintonBurdick, PLLC
Gilbert, Arizona
October 20, 2020
134
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