Annual Comprehensive Financial Report
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FOR FISCAL YEAR
ENDED JUNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
CITY OF EL MIRAGE, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Issued by:
Finance Department
Page
I.
Introductory Section
Letter of Transmittal
i
Organizational Chart
vii
List of Principal Officers
viii
GFOA Certificate of Achievement
xii
II.
Financial Section
Independent Auditors’ Report
1
Management’s Discussion & Analysis
7
A. Basic Financial Statements
Government - wide Financial Statements
Statement of Net Position
21
Statement of Activities
22
Governmental Funds Financial Statements
Balance Sheet - Government Funds
27
Reconciliation of Total Government Fund Balances
to Net Position of Government Activities
28
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds
29
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
30
Proprietary Funds
Statement of Net Position
33
Statement of Revenues, Expenses, and Changes in Fund Net Position
34
Statement of Cash Flows
35
Notes to the Financial Statements
Note 1 - Summary of Significant Accounting Policies
38
Note 2 - Reconciliation of government-wide and fund financial statements
47
Note 3 - Stewardship, compliance, and accountability
47
Note 4 - Cash and cash equivalents
49
Note 5 - Receivables
51
Note 6 - Capital assets
54
Note 7 - Interfund Receivables, payables and transfers
56
Note 8 - Long term liabilities
57
Note 9 - Pensions and other postemployment benefits
60
Note 10 - Risk Management
74
Note 11 - Contingent Liabilities And Commitments
75
Table of Contents
City of El Mirage, Arizona
Page
B. Required Supplementary Information
Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – General Fund
78
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Special Projects Fund
81
Notes to Budgetary Comparison Schedules
82
Schedule of City's Proportionate Share of the Net Pension Liability
84
Schedule of the Proportionate Share of the Net OPEB Liability (Asset) and
and Related Ratios - Agent Pension Plan
86
Schedule of Pension/OPEB Contributions
90
Notes to Pension/OPEB Plan Schedules
95
C. Other Supplementary Information
Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Streets (Capital Project Fund)
99
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds
103
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds
104
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Municipal Court Enhance
105
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Dial-A-Ride (LTAF)
106
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Police Towing
107
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Community Development Block Grant
108
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Streets (HURF)
109
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual –Debt Service
110
III.
Statistical Section
1. Net Position by Component
113
2. Governmental and Business-Type Activities Expense
114
3. Program Revenues and Net (Expense)/Revenue
116
4. General Revenues, Transfers, and Total Changes in Net Position
118
5. Fund Balances - Governmental Funds
120
6. Governmental Funds Revenues
122
7. Governmental Funds Expenditures and Debt Service Ratio
124
8. Other Financing Sources and Uses and Net Changes
in Fund Balances - Governmental Funds
126
9. Taxable Sales by Category
127
10. Transaction Privilege (Sales) Tax Collections by Industry
128
11. Direct and Overlapping Property Tax Rates
129
12. Property Tax Levies and Collections
130
13. Assessed Value and Estimated Actual Value of Taxable Property
131
14. Principal Property Tax Payers
132
15. Ratios of Outstanding Debt by Type
133
16. Ratios of General Bonded Debt Outstanding
134
17. Direct and Overlapping Governmental Activities Debt
135
18. Legal Debt Margin Information Unrestricted and Restricted
136
19. County-Wide Demographic and Economic Statistics
137
20. Principal Employers
138
21. Full-Time Equivalent City Government Employees by Function
139
22. Capital Asset Information
140
23. Operating Indicators by Function
141
Introductory Section
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
November 23, 2022
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
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 annual
comprehensive financial report of the City of El Mirage, Arizona (City) for the fiscal year ended
June 30, 2022.
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 Henry+Horne, 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, 2022, 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, 2022, 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 U.S. Census
population estimate of 36,101.
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 and
swimming pool operated by the YMCA and $6.0 million for a 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 ($105 million for FY 23) 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 financial
operation of thirteen funds, ten City departments, and more than 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-
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 99 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 as part of the regular budget. 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, Avanti Windows and Doors, 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 $11.0 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.
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.
iv
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, 2022, 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 and increased each year accommodate inflation and scope related changes .
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 annual
comprehensive financial report for the fiscal year
ended June 30, 2021. To be awarded this
certificate, the City published an easily readable
and efficiently organized annual comprehensive
financial report. This report satisfied
both
generally
accepted
accounting principles in the
United States and applicable legal requirements.
v
This certificate is valid for a period of one year only. City finance officers believe that the current annual
comprehensive 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, 2022 certificate.
Acknowledgments. The timely preparation of the annual comprehensive 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
vi
Citizens of
El Mirage
Mayor and
City Council
Boards and
Commissions
City Clerk
City Manager
Integovernmental
Relations
Police
Deputy City
Manager
Information
Technology
Development
Services
Code
Compliance
Development
Administration
Engineering
Building
Safety
Community
Services
Office of
Management
& Budget
Economic
Development
Public Works
Parks
Fleet
Faciliites
HURF
Sewer
Water
Finance
Fire
Human
Resources
City Attorney
City Court
Legend:
Organizational Chart
Effective July 1, 2022
Citizens/Elected/
Appointed
Department
Heads
Division and
Activities
viii
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 fifth-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 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, Iowa, she worked in the
independent adjusting business for 27 years. 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 from 2013 to 2018
Served on the Judicial Review Committee from 2012 to 2017
Named El Mirage Citizen of the Year in 2012
Served on the planning committee for the El Mirage homeowners association (HOA) training presented
in 2016 to 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 to present.
President of the West Valley Neighborhoods Coalition
ix
Councilmember 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 six children. Roy
joined the military (U.S. Army) and served his country for 21 years. He is the proud
father of two sons, four grandchildren and four 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 1970s 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 21 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.
Councilmember Bob Jones
Councilmember Bob Jones has called Arizona home for over 60 years and has been
a proud El Mirage resident since 2002. Councilmember Jones has a diverse
business background which includes years of experience in retail management,
sales and distribution, and customer service in both large corporate environments,
and a small business entrepreneur. Later in his career he followed his heart and
entered the world of education, spending years as an elementary school teacher till
he retired in 2005. Since that time, Jones has focused his time and energy in the
El Mirage community. Councilmember Jones acted as an advocate for children in
El Mirage, working on the task force to add Riverview Elementary School as an
El Mirage addition to the Dysart Unified School District. Mr. Jones acquired a
charter and introduced the first coed Cub Scout pack in Arizona, while serving as
Cub Master. He has also served as a member of the Dysart Community Center’s
board of directors.
Jones also serves his community by being on the Cactus Park Homeowners Association and has also served as
President since 2010. As President, he collaborated with other HOA’s and El Mirage City leaders on community
affairs. Jones was appointed to the El Mirage Planning and Zoning Committee in 2007 and again in 2012 and has
served as the committee chair. He left the Planning and Zoning Committee to complete a successful run for City
Council in 2014. Jones went on to complete four years on the City Council before retiring as Vice Mayor. The
past six years Jones served as a representative of our country while hosting foreign exchange students from all
over the world. Mr. and Mrs. Jones have hosted nine (9) exchange students while educating them in community
affairs, American government, and life in our country. Bob has six children and nine grandchildren, he has been
married to his wife, Cathy, for over 23 years.
x
Councilmember Anita Norton
Councilmember 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.
Councilmember 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. Councilmember Norton is Chair 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 20 years, Anita has had a positive impact on the lives of hundreds of students, helping
them grow in confidence and 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.
Councilmember David Shapera
Councilmember David M. Shapera was 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 48 years in elected and appointed
positions in government.
He and his wife of 46 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 nine 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 43-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.
xi
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 22 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 22 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 Arizona
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 an animal hospital in Sunday City West. Their two eldest sons are
veterans of 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 the animal hospital. Donna is also a wedding planner and owns 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, which started as a
civic engagement project for college students and 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 awareness in our own neighborhoods to secure a safer, better future for El
Mirage citizens
City Manager – J. Crystal Dyches
City Attorney – Pierce Coleman PLLC
City Clerk – Sharon Antes
City Magistrate – Michael Parascandola
LIST OF APPOINTED CITY OFFICIALS
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Mirage
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xii
Financial Section
INDEPENDENT AUDITORS’ REPORT
Council Members and Management
City of El Mirage
El Mirage, Arizona
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of El Mirage, as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the City of El Mirage’s basic financial statements as listed
in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of El Mirage, as of June 30,
2022, and the respective changes in financial position, and, where applicable, cash flows thereof
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City of El
Mirage and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As discussed in Note 1, Note 6 and Note 8 to the financial statements, in 2022 the City of El
Mirage adopted the new accounting guidance, Government Accounting Standards Board No 87,
Leases. Our opinions are not modified with respect to this matter.
Other Matters
In connection with our audit, nothing came to our attention that caused us to believe that the City
of El Mirage failed to comply with the authorized transportation purposes, insofar as they relate
to accounting matters, for Highway User Revenue Fund monies it received pursuant to Arizona
Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated State transportation
revenues it received. However, our audit was not directed primarily toward obtaining knowledge
of such noncompliance. Accordingly, had we performed additional procedures, other matters may
have come to our attention regarding the City of El Mirage’s noncompliance with the authorized
transportation purposes referred to above, insofar as they relate to accounting matters.
The communication related to compliance over the use of Highway User Revenue Fund and other
dedicated State transportation revenue monies in the preceding paragraph is intended solely for
the information and use of the members of the Arizona State Legislature, (the Arizona Auditor
General,) the City of El Mirage’s Council Members and management, and other responsible
parties within the City of El Mirage and is not intended to be and should not be used by anyone
other than these specified parties.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City of
El Mirage’s ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt shortly
thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinions. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
generally accepted auditing standards and Government Auditing Standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the financial statements.
Auditors’ Responsibilities for the Audit of the Financial Statements (Continued)
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•
Exercise professional judgment and maintain professional skepticism throughout the
audit.
•
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
•
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the City of El Mirage’s internal control.
Accordingly, no such opinion is expressed.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
•
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City of El Mirage’s ability to continue as
a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, and required supplementary information as listed in the
table of contents be presented to supplement the basic financial statements. Such information is
the responsibility of management and, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of El Mirage’s basic financial statements. The accompanying
combining and individual nonmajor fund financial statements are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information
is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information
and the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 23, 2022 on our consideration of the City of El Mirage’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City of El
Mirage’s internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering
City of El Mirage’s internal control over financial reporting and compliance.
Tempe, Arizona
November 23, 2022
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
Financial Section
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
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, 2022. 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 by $11.7 million to $121.6
million and business-type activities by $0.2 million to $59.1 million representing an increase
of 11 percent and 1 percent, respectively. The total net position is $180.7 million.
•
General revenues before transfers from governmental activities accounted for $31.7 million
in revenue, or 74 percent of all revenues from governmental activities. Program specific
revenues in the form of charges for services and grants and contributions accounted for $11.1
million or 26 percent of total governmental activities revenues. The City had $16.1 million of
program revenues and $0.1 million in general revenues related to business-type activities.
•
The City had $34.0 million in expenses related to governmental activities, an increase of
9 percent from the prior fiscal year. The City had $13.0 million in expenses related to
business-type activities, an increase of 21 percent from the prior fiscal year.
•
Among major funds, the General Fund had $32.9 million in revenues, which primarily
consisted of taxes and intergovernmental revenues. The total expenditures of the General
Fund were $30.3 million. The General Fund’s fund balance increased from $43.3 million to
$49.6 million, due primarily to city sales tax.
•
The Special Projects (Special Revenue) Fund had $0.9 million in revenues. The total
expenditures of the fund were $2.2 million. The Special Projects Fund’s fund balance
decreased from $6.3 million to $5.0 million, at the end of the current fiscal year due to
increased expenditures of federal and State grants.
•
The Streets (Capital Projects) Fund had $3.6 million in revenues. The total expenditures of
the Streets Fund were $0.7 million. The Streets Fund’s fund balance increased from $14.8
million to $17.7 million, at the end of the current fiscal year.
•
The Water Fund net position decreased $0.2 million. The Water Fund had operating revenues
of $10.4 million and operating expenses of $8.2 million. The net position decrease was due
to transfers out.
•
The Sewer Fund net position increased less than $0.1 million. The Sewer Fund had
operating revenues of $3.5 million and operating expenses of $2.8 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, 2022
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 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 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, 2022
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 Note 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, 2022
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 $180.7
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, 2022, and June 30, 2021.
06/30/22
06/30/21
06/30/22
06/30/21
06/30/22
06/30/21
Current and other assets
79,632,981
$
70,344,740
$
40,299,347
$
43,946,386
$
119,932,328
$
114,291,126
$
Capital assets
78,582,264
77,416,250
39,117,734
38,178,333
117,699,998
115,594,583
Total assets
158,215,245
147,760,990
79,417,081
82,124,719
237,632,326
229,885,709
Deferred outflows of resources
9,077,102
6,760,679
517,970
553,513
9,595,072
7,314,192
Long-term liabilities outstanding
34,639,842
42,545,682
15,825,018
20,064,189
50,464,860
62,609,871
Other liabilities
3,636,098
1,883,741
4,506,642
3,683,193
8,142,740
5,566,934
Total liabilities
38,275,940
44,429,423
20,331,660
23,747,382
58,607,600
68,176,805
Deferred inflows of resources
7,386,805
1,494,374
531,374
33,455
7,918,179
1,527,829
Net position:
Net investment in capital assets
58,889,522
56,661,890
23,374,495
29,667,292
82,264,017
86,329,182
Restricted
26,133,927
23,898,377
-
-
26,133,927
23,898,377
Unrestricted
36,606,153
29,331,979
35,697,522
29,230,103
72,303,675
58,562,082
Total net position
121,629,602
$
109,892,246
$
59,072,017
$
58,897,395
$
180,701,619
$
168,789,641
$
Governmental Activities
Business-type Activities
Total Primary Government
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 6, 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 $9.3 million in governmental activities current and other assets, primarily
cash and cash equivalents.
•
The reduction of $4.2 million in business-type activities long-term liabilities, due to
principal payments on WIFA loans.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
11
Changes in Net Position
The City’s programs include: General Government, Public Safety, Public Works/Streets, Water,
Sewer, and Sanitation. Each programs’ net cost (total cost less revenues generated by the
activities) is presented below.
•
Capital grants and contributions related to governmental activities increased by less than
$0.1 million.
•
Operating grants and contributions related to governmental activities decreased $6.9
million due to Federal funding related to COVID 19 received in FY 2021.
•
Business-type activities revenues increased by $1.7 million or 12% percent primarily due
to an increase in charges for services.
06/30/22
06/30/21
06/30/22
06/30/21
06/30/22
06/30/21
Revenues
Program revenues
Charges for Services
6,853,331
$
4,026,699
$
16,103,749
$
14,414,266
$
22,957,080
18,440,965
$
Operating grants and contributions
3,759,331
10,654,161
-
-
3,759,331
10,654,161
Capital grants and contributions
471,130
432,025
-
15,000
471,130
447,025
General revenues
Property taxes
4,685,551
4,308,183
-
-
4,685,551
4,308,183
City sales tax
14,760,486
13,385,017
-
-
14,760,486
13,385,017
Franchise tax
761,830
772,317
-
-
761,830
772,317
Unrestricted state revenues
11,437,358
11,046,696
-
-
11,437,358
11,046,696
Investment income
Interest earnings
209,431
70,999
64,784
30,354
274,215
101,353
Change in fair value of investments
(600,884)
-
-
-
(600,884)
-
Gain on sale of capital assets
-
42,411
3,026
30,750
3,026
73,161
Miscellaneous
394,745
-
-
-
394,745
-
Total revenues
42,732,309
$
44,738,508
$
16,171,559
$
14,490,370
$
58,903,868
$
59,228,878
$
Governmental Activities
Business-type Activities
Total Primary Government
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
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.
06/30/22
06/30/21
06/30/22
06/30/21
06/30/22
06/30/21
Expenses
General government
12,617,262
9,025,363
-
-
12,617,262
9,025,363
Public safety
16,200,172
17,072,200
-
-
16,200,172
17,072,200
Highways and streets
4,567,594
4,279,942
-
-
4,567,594
4,279,942
Interest on long-term debt
654,574
815,347
-
-
654,574
815,347
Water
-
-
8,522,589
6,467,410
8,522,589
6,467,410
Sewer
-
-
2,846,119
2,604,974
2,846,119
2,604,974
Sanitation
-
-
1,583,580
1,619,256
1,583,580
1,619,256
Total expenses
34,039,602
31,192,852
12,952,288
10,691,640
46,991,890
41,884,492
Increase (decrease) in
net position before transfers
8,692,707
13,545,656
3,219,271
3,798,730
11,911,978
17,344,386
Transfers
3,044,649
3,205,000
(3,044,649)
(3,205,000)
-
-
Increase (decrease)
in net position
11,737,356
16,750,656
174,622
593,730
11,911,978
17,344,386
Net position, beginning
109,892,246
93,141,590
58,897,395
58,303,665
168,789,641
151,445,255
Net position, ending
121,629,602
$
109,892,246
$
59,072,017
$
58,897,395
$
180,701,619
$
168,789,641
$
Governmental Activities
Business-type Activities
Total Primary Government
•
Federal and State grants and charges for services subsidized certain governmental
programs with revenues of $4.2 million and $6.9 million, respectively.
•
Governmental activities expense increased $2.8 million or 9% primarily due to
increases in general government.
•
Net cost of governmental activities of $23.0 million was financed by general revenues,
which are primarily property tax, local sales taxes, and unrestricted revenues totaling
$31.6 million.
•
The cost of providing all Proprietary (Business Type) activities this year was $13.0
million. The amounts paid by users of the system were $16.1 million. Interest earnings
and capital grants and contributions were $0.1 million.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
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 $75.8 million, an increase of $7.5 million or 11
percent, compared to the prior fiscal year. The change is primarily due to City sales tax and
intergovernmental revenue.
Approximately 65 percent of the combined ending fund balances of $79.1 million, or $49.6 million,
constitutes unassigned fund balance which is available for new spending at the government’s
discretion. The $49.6 million combined unassigned fund balance includes $11.0 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 $49.6 million, while total General
Fund balance was $49.6 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 164 percent of total
General Fund expenditures while total fund balance represents 164 percent of the same amount.
During the year the City of El Mirage’s General Fund balance increased by $6.3 million. This
increase in fund balance is primarily attributable to increased City sales tax and Intergovernmental
revenue.
The Special Projects (Special Revenue) Fund has a total fund balance of $5.0 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 $17.7 million, an increase of $2.9
million from the prior year, all of which is assigned for road and street construction and
improvements.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
14
General Fund Budgetary Highlights
Tax revenues have a positive variance of $2.8 million due to stronger than budgeted City sales
tax collections and the recording of a 13th period of revenue. Intergovernmental revenues had a
positive variance of $0.9 million, due to increased tax collections statewide and an
accommodative money supply. Total revenues have a positive variance of 19 percent or $5.2
million. General Fund expenditures were $30.3 million or 12 percent less than budgeted with the
most significant positive variances in the following areas:
•
In the General Government category, total spending was $2.3 million, or 17 percent, less
than budget. Most notable in this category was Non-departmental spending $1.4 million
less than budget due to Personnel savings.
•
Capital Outlay spending variance was $1.2 million, or 27 percent less than budget as major
capital projects were under construction but not completed.
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 $3.6 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, 2022 and 2021.
06/30/22
06/30/21
06/30/22
06/30/21
06/30/22
06/30/21
Non-Depreciable Assets
11,122,252
$
11,713,099
$
1,038,045
$
2,160,257
$
12,160,297
$
13,873,356
$
Depreciable Assets
102,735,477
97,378,415
84,348,654
79,526,097
187,084,131
176,904,512
Less: Accumulated depreciation
(35,275,465)
(31,675,264)
(46,268,965)
(43,508,021)
(81,544,430)
(75,183,285)
Total
78,582,264
$
77,416,250
$
39,117,734
$
38,178,333
$
117,699,998
$
115,594,583
$
Governmental Activities
Business-type Activities
Total
•
The most significant increase in governmental capital assets $2.9 million is related to
completion of projects related to Buildings and Improvements.
•
The most significant increase in business type capital assets $2.3 million is related to
completed Sewer plant projects.
Additional information regarding the City’s capital assets can be found in Note 6.
CITY OF EL MIRAGE, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2022
15
Long-Term Debt
At year-end, the City had $20.0 million in governmental-type bond debt, and $15.7 million in
business-type direct borrowing debt. The debt is a liability of the government and amounts to
approximately $990 per capita (estimated population 36,101). During the current fiscal year, the
City’s total debt had a net decrease of $2.6 million. The following schedule presents outstanding
long-term debt for the fiscal years ended June 30, 2022, and 2021.
06/30/22
06/30/21
General Obligation bonds
20,008,806
21,130,822
WIFA Loans
15,743,239
17,198,541
Total
35,752,045
$
38,329,363
$
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 $16.5 million in the 6
percent capacity and $55.0 million in the 20 percent capacity. The City has $0.2 million of G.O.
debt applicable to the 6 percent limit and $17.7 million of debt applicable to the 20 percent limit.
The limits do not apply to $2.2 million of bond premium.
Additional information regarding the City’s long-term debt can be found in Note 8.
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.
Financial Section
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements – include the Statement of Net Position and Statement
of Activities and use the accrual basis of accounting for financial reporting.
Governmental Funds Financial Statements – include the Balance Sheet and Statement of
Revenues, Expenditures, and Changes in Fund Balance for the major governmental funds that
use the modified accrual basis of reporting. Also includes the reconciliations to the government-
wide financial statements.
Proprietary Funds Financial Statements – include the Statement of Net Position, Statement of
Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows for the
business-type activities that use the accrual basis of accounting for financial reporting.
Notes to the Financial Statements
Financial Section
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF NET POSITION
June 30, 2022
Governmental
Business-type
ASSETS
Activities
Activities
Total
Cash and cash equivalents
75,024,444
$
26,843,664
$
101,868,108
$
Receivables (net of allowances)
4,121,330
1,741,770
5,863,100
Prepaid items
13,058
-
13,058
Inventory
-
11,657,029
11,657,029
Net pension/OPEB asset
474,149
56,884
531,033
Capital assets:
Nondepreciable capital assets
11,122,252
1,038,045
12,160,297
Depreciable capital assets (net of accumulated
depreciation)
67,460,012
38,079,689
105,539,701
Total assets
158,215,245
79,417,081
237,632,326
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding
316,064
-
316,064
Deferred outflows of resources and
employer contributions to pensions
8,761,038
517,970
9,279,008
Total deferred outflows of resources
9,077,102
517,970
9,595,072
LIABILITIES
Accounts payable and other current liabilities
1,921,198
2,799,885
4,721,083
Interest payable
-
183,040
183,040
Unearned revenue
211,289
-
211,289
Due to other governments
33,212
-
33,212
Noncurrent liabilities:
Due within one year
Compensated absences
205,399
29,381
234,780
Loans/ developer agreements payable
-
1,494,336
1,494,336
Bonds payable
1,265,000
-
1,265,000
Due in more than one year
Compensated absences
821,598
117,523
939,121
Loans/ developer agreements payable
-
14,248,903
14,248,903
Bonds payable
18,743,806
-
18,743,806
Net pension/OPEB liability
15,074,438
1,458,592
16,533,030
Total liabilities
38,275,940
20,331,660
58,607,600
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
6,253,918
531,374
6,785,292
Deferred inflows related to leases
1,132,887
-
1,132,887
Total deferred inflows of resources
7,386,805
531,374
7,918,179
NET POSITION
Net investment in capital assets
58,889,522
23,374,495
82,264,017
Restricted for:
Public safety
105,543
-
105,543
Streets projects
19,524,495
-
19,524,495
Special projects
4,983,003
-
4,983,003
Debt service
552,273
-
552,273
Court and police programs
968,613
-
968,613
Unrestricted
36,606,153
35,697,522
72,303,675
Total net position
121,629,602
$
59,072,017
$
180,701,619
$
Primary Government
See accompanying notes
21
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2022
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary government
Governmental activities
General government
12,617,262
$
2,725,756
$
103,477
$
-
$
Public safety
16,200,172
579,329
918,993
11,757
Highways and streets
4,567,594
3,548,246
2,736,861
459,373
Interest on long-term debt
654,574
-
-
-
Total governmental activities
34,039,602
6,853,331
3,759,331
471,130
Business-type activities
Water
8,522,589
10,375,917
-
-
Sewer
2,846,119
3,479,855
-
-
Sanitation
1,583,580
2,247,977
-
-
Total business-type activities
12,952,288
16,103,749
-
-
Total primary government
46,991,890
$
22,957,080
$
3,759,331
$
471,130
$
General revenues
Taxes:
City sales tax
Franchise tax
Property tax, levied for general purposes
Property tax, levied for general purposes
Unrestricted state revenues
Unrestricted investment earnings
Interest earnings
Change in the fair value of investments
Gain on sale of capital assets
Miscellaneous
Transfers in (out)
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
Program Revenues
22
See accompanying notes.
Governmental
Business-type
Activities
Activities
Total
(9,788,029)
$
-
$
(9,788,029)
$
(14,690,093)
-
(14,690,093)
2,176,886
-
2,176,886
(654,574)
-
(654,574)
(22,955,810)
-
(22,955,810)
-
1,853,328
1,853,328
-
633,736
633,736
-
664,397
664,397
-
3,151,461
3,151,461
(22,955,810)
3,151,461
(19,804,349)
14,760,486
-
14,760,486
761,830
-
761,830
2,640,330
-
2,640,330
2,045,221
-
2,045,221
11,437,358
-
11,437,358
209,431
64,784
274,215
(600,884)
-
(600,884)
-
3,026
3,026
394,745
-
394,745
3,044,649
(3,044,649)
-
34,693,166
(2,976,839)
31,716,327
11,737,356
174,622
11,911,978
109,892,246
58,897,395
168,789,641
121,629,602
$
59,072,017
$
180,701,619
$
Net (Expense) Revenue and Changes in Net Position
23
See accompanying notes.
Financial Section
GOVERNMENTAL FUND FINANCIAL STATEMENTS
MAJOR FUNDS
General Fund – This 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.
Special Projects Fund – This fund is used to account for the funding for various City special
projects.
Streets Fund – This fund is used to account for the construction and acquisition of streets and
street department facilities.
NON-MAJOR FUNDS
Other governmental funds are the non-major funds and are special revenue funds.
CITY OF EL MIRAGE, ARIZONA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2022
Non-Major
Total
Special
Streets
Governmental
Governmental
ASSETS
General
Projects
(Capital Projects)
Funds
Funds
Cash and cash equivalents
48,538,306
$
4,988,959
$
17,677,287
$
3,819,892
$
75,024,444
$
Receivables, net:
Taxes
111,095
-
-
81,494
192,589
Intergovernmental
2,120,311
51,909
-
344,349
2,516,569
Leases
1,052,702
-
-
-
1,052,702
Other
266,153
2,947
-
90,370
359,470
Due from other funds
15,064
-
-
-
15,064
Prepaids
13,058
-
-
-
13,058
Total assets
52,116,689
$
5,043,815
$
17,677,287
$
4,336,105
$
79,173,896
$
LIABILITIES
Accounts payable
697,816
$
59,247
$
12,005
$
788,976
$
1,558,044
$
Accrued wages and benefits
306,391
-
-
3,820
310,211
Due to other governments
31,647
1,565
-
-
33,212
Customer deposits
50,232
-
-
2,711
52,943
Due to other funds
-
-
-
15,064
15,064
Unearned revenue
211,289
-
-
-
211,289
Total liabilities
1,297,375
60,812
12,005
810,571
2,180,763
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - taxes
55,817
-
-
39,892
95,709
Deferred inflows related to leases
1,132,887
-
-
-
1,132,887
Total deferred inflows of resources
1,188,704
-
-
39,892
1,228,596
FUND BALANCES
Nonspendable
Due from other funds
15,064
-
-
-
15,064
Prepaid items
13,058
-
-
-
13,058
Restricted
Public safety
-
-
-
105,543
105,543
Public works/streets
-
-
17,665,282
1,859,213
19,524,495
Special projects
-
4,983,003
-
-
4,983,003
Debt service
-
-
-
552,273
552,273
Court and police programs
-
-
-
968,613
968,613
Unassigned
49,602,488
-
-
-
49,602,488
Total fund balances
49,630,610
4,983,003
17,665,282
3,485,642
75,764,537
Total liabilities and fund balances
52,116,689
$
5,043,815
$
17,677,287
$
4,336,105
$
79,173,896
$
27
See accompanying notes.
CITY OF EL MIRAGE, ARIZONA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
June 30, 2022
Total governmental funds balances
75,764,537
$
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
113,857,729
Accumulated depreciation
(35,275,465)
78,582,264
Grant revenues earned but not received within 60 days of year-
end are deferred for the governmental statements, but are
recognized as revenue for the government-wide statements.
Property taxes
95,709
Net OPEB asset is not an available resource and, therefore
is not reported in the funds.
474,149
Some liabilities, including net pension liabilities, capital leases,
loans payable, and bonds payable, are not due and payable in the
current period and therefore are not reported in the funds.
Net pension/OPEB liability
(15,074,438)
Bonds payable
(17,860,000)
Bond premiums
(2,148,806)
Compensated absences
(1,026,997)
(36,110,241)
Deferred outflows and inflows of resources related to pension/OPEB
and deferred charges on debt refundings are applicable to future
reporting periods and, therefore, are not reported in the funds.
Deferred amount on refunding
316,064
Deferred outflows of resources related to pension/OPEB
8,761,038
Deferred inflows of resources related to pension/OPEB
(6,253,918)
2,823,184
Total net position of governmental activities
121,629,602
$
28
See accompanying notes.
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended June 30, 2022
Non-Major
Total
Special
Streets
Governmental
Governmental
REVENUES
General
Projects
(Capital Projects)
Funds
Funds
City sales taxes
14,760,486
$
-
$
-
$
-
$
14,760,486
$
Property taxes
2,622,006
-
-
2,041,569
4,663,575
Franchise taxes
761,830
-
-
-
761,830
Licenses, permits and fees
1,050,534
-
-
-
1,050,534
Intergovernmental revenues
11,490,873
791,366
-
3,196,234
15,478,473
Charges for services
208,138
-
-
-
208,138
Fees
1,400,061
-
-
-
1,400,061
Fines and forfeitures
265,865
-
-
72,488
338,353
Investment earnings
Interest earnings
135,750
19,821
42,975
10,885
209,431
Change in the fair value of investments
(457,781)
(143,103)
-
-
(600,884)
Other revenues
676,438
188,270
3,548,246
20,595
4,433,549
Total revenues
32,914,200
856,354
3,591,221
5,341,771
42,703,546
EXPENDITURES
Current:
General government
10,887,652
64,231
-
-
10,951,883
Public safety
16,177,047
1,129,947
-
240,290
17,547,284
Highways and streets
-
143,920
500,000
2,285,854
2,929,774
Capital outlay
3,254,160
882,567
197,597
1,286,242
5,620,566
Debt service:
Principal retirement
-
-
-
1,435,000
1,435,000
Interest and fiscal charges
-
-
-
654,574
654,574
Debt issuance cost
-
-
-
481,975
481,975
Total expenditures
30,318,859
2,220,665
697,597
6,383,935
39,621,056
Excess (deficiency) of revenues
over (under) expenditures
2,595,341
(1,364,311)
2,893,624
(1,042,164)
3,082,490
OTHER FINANCING SOURCES (USES)
Refunding bonds issued
-
-
-
11,575,000
11,575,000
Premium on refunding bonds issued
-
-
-
1,213,761
1,213,761
Payment to refunded bond escrow agent
-
-
-
(12,300,000)
(12,300,000)
Transfers in
4,406,004
100,000
-
100,000
4,606,004
Transfers out
(702,000)
(5,004)
-
-
(707,004)
Total other financing sources
and (uses)
3,704,004
94,996
-
588,761
4,387,761
Net change in fund balances
6,299,345
(1,269,315)
2,893,624
(453,403)
7,470,251
Fund balances - beginning of year
43,331,265
6,252,318
14,771,658
3,939,045
68,294,286
Fund balances - end of year
49,630,610
$
4,983,003
$
17,665,282
$
3,485,642
$
75,764,537
$
See accompanying notes.
29
CITY OF EL MIRAGE, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES
Year Ended June 30, 2022
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds
7,470,251
$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense.
This is the difference between depreciation expense and capital outlay
in the current period.
Capital outlay
5,620,566
$
Depreciation expense
(3,600,201)
2,020,365
The effect of miscellaneous transactions involving capital asset is to
decrease net position.
Transfer of capital assets
(854,351)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
21,976
City pension/OPEB contributions are reported as expenditures in the governmental
governmental funds when made. However, they are reported as deferred
outflows of resources in the Statement of Net Position because the reported
net position liability is measured a year before the City's report date.
Pension/OPEB expense, which is the change in the net pension liability
adjusted for changes in deferred outflows and inflows of resources
related to pensions/OPEB, is reported in the Statement of Activities.
City pension/OPEB contributions
4,371,806
Pension/OPEB expense
(2,548,361)
1,823,445
Debt proceeds and premiums provide current financial resources to the
governmental funds, but issuing debt increases long-term liabilities in
the Statement of Activities.
Issuance of refunding bonds
(11,575,000)
Issuance of premiums on refunding bonds
(1,213,761)
(12,788,761)
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.
Principal paid on bonds
1,435,000
Payment to escrow agent
12,300,000
13,735,000
Governmental funds report the effect of premiums, discounts and similar
items when debt is first issued, whereas these amounts are deferred
and amortized in the Statement of Activities.
Deferred amounts on refunding
(60,398)
Bond premiums
175,777
115,379
Compensated absences expenses reported in the statement of activities
do not require the use of current financial resources and therefore are
not reported as expenditures in governmental funds.
194,052
Change in net position of governmental activities
11,737,356
$
30
See accompanying notes.
Financial Section
PROPRIETARY FUND FINANCIAL STATEMENTS
Enterprise Funds
Water Fund – This fund is used to account for the activities of the City’s water utility operations.
Sewer Fund – This fund is used for the activities of sewer collection and treatment operations.
Sanitation Fund – This fund is used for the activities of collection of solid waste and related
operations.
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2022
(Nonmajor)
ASSETS
Water
Sewer
Sanitation
Total
Current assets
Cash
16,920,742
$
8,693,147
$
1,229,775
$
26,843,664
$
Receivables (net of allowance)
1,099,500
301,996
188,681
1,590,177
Intergovernmental receivables
132,893
18,700
-
151,593
Inventories
11,657,029
-
-
11,657,029
Total current assets
29,810,164
9,013,843
1,418,456
40,242,463
Noncurrent assets
Net pension/OPEB asset
35,927
20,957
-
56,884
Nondepreciable capital assets
246,193
791,852
-
1,038,045
Depreciable capital assets (net of
accumulated depreciation)
19,361,279
18,718,410
-
38,079,689
Total noncurrent assets
19,643,399
19,531,219
-
39,174,618
Total assets
49,453,563
28,545,062
1,418,456
79,417,081
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions
376,529
141,441
-
517,970
Total deferred outflows of resources
376,529
141,441
-
517,970
LIABILITIES
Current liabilities
Accounts payable
420,437
225,503
103,949
749,889
Accrued wages and benefits
18,493
7,942
-
26,435
Interest payable
178,562
4,478
-
183,040
Customer deposits
2,023,561
-
-
2,023,561
Compensated absences - current portion
16,719
12,662
-
29,381
Loans payable - current portion
1,469,102
25,234
-
1,494,336
Total current liabilities
4,126,874
275,819
103,949
4,506,642
Noncurrent liabilities
Compensated absences
60,218
57,305
-
117,523
Loans payable, net of current portion
13,954,246
294,657
-
14,248,903
Net pension/OPEB liability
885,295
573,297
-
1,458,592
Total noncurrent liabilities
14,899,759
925,259
-
15,825,018
Total liabilities
19,026,633
1,201,078
103,949
20,331,660
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
326,741
204,633
-
531,374
NET POSITION
Net investment in capital assets
4,184,124
19,190,371
-
23,374,495
Unrestricted
26,292,594
8,090,421
1,314,507
35,697,522
Total net position
30,476,718
$
27,280,792
$
1,314,507
$
59,072,017
$
Business-type Activities-Enterprise Funds
See accompanying notes
33
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Year Ended June 30, 2022
(Nonmajor)
Water
Sewer
Sanitation
Total
Operating revenues
Charges for services
10,117,863
$
3,479,855
$
2,247,977
$
15,845,695
$
Other revenues
258,054
-
-
258,054
Total operating revenue
10,375,917
3,479,855
2,247,977
16,103,749
Operating expenses
Cost of sales and services
5,599,885
948,851
1,553,580
8,102,316
Salaries and benefits
976,489
685,595
30,000
1,692,084
Depreciation
1,589,092
1,202,344
-
2,791,436
Miscellaneous
-
372
-
372
Total operating expenses
8,165,466
2,837,162
1,583,580
12,586,208
Operating income (loss)
2,210,451
642,693
664,397
3,517,541
Non-operating Revenues (Expenses)
Interest income
39,954
22,154
2,676
64,784
Gain (loss) on sale of capital assets
3,026
-
-
3,026
Interest expenses and fiscal charges
(357,123)
(8,957)
-
(366,080)
Total nonoperating revenue (expense)
(314,143)
13,197
2,676
(298,270)
Income (loss) before contributions
and transfers
1,896,308
655,890
667,073
3,219,271
Capital contributions
854,351
-
-
854,351
Transfers in
207,000
1,394,000
-
1,601,000
Transfers out
(3,112,000)
(2,031,000)
(357,000)
(5,500,000)
Change in net position
(154,341)
18,890
310,073
174,622
Net position, beginning of year
30,631,059
27,261,902
1,004,434
58,897,395
Net position-end of year
30,476,718
$
27,280,792
$
1,314,507
$
59,072,017
$
Business-type Activities-Enterprise Funds
34
See accompanying notes.
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended June 30, 2022
(Nonmajor)
CASH FLOWS FROM OPERATING
Water
Sewer
Sanitation
Total
ACTIVITIES
Cash received from customers, service fees
10,098,459
$
3,491,585
$
2,204,839
$
15,794,883
$
Cash paid to suppliers
(4,643,419)
(1,511,828)
(1,609,713)
(7,764,960)
Cash paid to employees
(1,833,723)
(664,077)
(30,000)
(2,527,800)
Cash flows provided (used) by operating activities
3,621,317
1,315,680
565,126
5,502,123
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds
(3,112,000)
(2,031,000)
(357,000)
(5,500,000)
Transfers from other funds
207,000
1,394,000
-
1,601,000
Cash flows provided (used) by noncapital and
related financing activities
(2,905,000)
(637,000)
(357,000)
(3,899,000)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchase of capital assets
(888,906)
(1,987,580)
-
(2,876,486)
Proceeds from sale of capital assets
3,026
-
-
3,026
Principal paid on loans
(1,430,755)
(24,547)
-
(1,455,302)
Interest paid on loans
(376,295)
(9,301)
-
(385,596)
Cash flows provided (used) by capital and related
financing activities
(2,692,930)
(2,021,428)
-
(4,714,358)
CASH FLOWS FROM INVESTING
ACTIVITIES
Receipts from investment earnings
39,954
22,154
2,676
64,784
Cash flows provided (used) by investing activities
39,954
22,154
2,676
64,784
NET CHANGE IN CASH AND CASH EQUIVALENTS
(1,936,659)
(1,320,594)
210,802
(3,046,451)
Cash and cash equivalents at beginning of year
18,857,401
10,013,741
1,018,973
29,890,115
Cash and cash equivalents at end of year
16,920,742
$
8,693,147
$
1,229,775
$
26,843,664
$
Business-type Activities-Enterprise Funds
35
See accompanying notes.
CITY OF EL MIRAGE, ARIZONA
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
Year Ended June 30, 2022
(Nonmajor)
Water
Sewer
Sanitation
Total
Reconciliation of operating loss
to net cash provided (used) by operating
activities:
Net operating loss
2,210,451
$
642,693
$
664,397
$
3,517,541
$
Adjustments to reconcile operating
loss to net cash provided (used)
by operating activities:
Depreciation/amortization expense
1,589,092
1,202,344
-
2,791,436
Changes in operating assets and liabilities
(Increase)/decrease in:
Accounts receivable
(35,956)
30,430
(43,138)
(48,664)
Other assets
713,690
(18,700)
-
694,990
Deferred outflows of resources related to pensions
29,381
6,162
-
35,543
Net pension/OPEB asset
(27,753)
(17,985)
-
(45,738)
Increase/(decrease) in:
Accounts payable
(15,278)
(562,605)
(56,133)
(634,016)
Accrued wages and benefits
(44,107)
(19,181)
-
(63,288)
Customer deposits
16,552
-
-
16,552
Compensated absences
3,559
12,903
-
16,462
Net pension/OPEB liability
(1,120,522)
(156,092)
-
(1,276,614)
Deferred inflows of resources related to pensions
302,208
195,711
-
497,919
Net cash provided (used) by
operating activities:
3,621,317
$
1,315,680
$
565,126
$
5,502,123
$
Noncash investing, capital, and
financing activities:
Contributions of capital assets
854,351
-
-
854,351
Business-type Activities-Enterprise Funds
36
See accompanying notes.
Financial Section
NOTES TO THE FINANCIAL STATEMENTS
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
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.
38
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 such as transfers of
capital assets between governmental funds and proprietary funds. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
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 a special revenue fund that is used to account for the funding
for various City special projects.
The Streets (Capital Projects) Fund is a capital projects fund that 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.
39
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
40
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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. The reported value of the state treasurer’s pool is the same as the fair value of the pools
shares.
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.
41
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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), including those that are leased by the City, 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.
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. 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:
Buildings and improvements
10 to 50 years
Machinery and equipment
5 to 20 years
Vehicles
5 to 15 years
Streets, sidewalks, and other infrastructure
7 to 30 years
Land improvements
10 to 25 years
Sewer plan
20 to 50 years
Sewer collection system
15 to 25 years
Water infrastructure
10 years
Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful
life of the underlying asset.
42
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 assets that applies to future period(s) and so will
not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two
types of items that qualify for reporting in this category. It is the deferred amount on refunding and
pension/OPEB related items reported on the government-wide and proprietary fund financial
statements.
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 assets that applies to future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time. The City has three types of
items that qualify for reporting in this category. Lease related items that are reported both on the
modified accrual basis of accounting and full accrual basis of accounting. Pension/OPEB related
items reported on the full accrual basis of accounting on the government-wide and proprietary
fund financial statements. Unavailable revenues are reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from grants and taxes.
These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available.
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.
43
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
44
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
Leases
As lessee, the City recognizes lease liabilities with an initial, individual value of $25,000 or more.
The City uses its estimated incremental borrowing rate to measure lease liabilities unless it can
readily determine the interest rate implicit in the lease. The City’s estimated incremental borrowing
rate is based on the average interest rate of other financing instruments with similar terms and
risks as those currently entered into by the City.
45
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Leases (Continued)
As lessor, the City recognizes lease receivables with an initial, individual value of $100,000 or
more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the City
charges the lessee) and the implicit rate cannot be determined, the City uses its own estimated
incremental borrowing rate as the discount rate to measure lease receivables. The City’s
estimated incremental borrowing rate is calculated using the same method used on their lessee
transactions above.
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.
46
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Change in Accounting Principle
For the year ended June 30, 2022, the City implemented the provisions of GASB Statement No.
87, Leases, as amended, which establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. As a result,
the City’s financial statements have been modified to reflect the recognition of certain lease assets
for leases that were previously classified as rental income and recognized as inflows of resources
based on the contract payment provisions. The City's current lessee obligations are insignificant
to the financial statements and have not been further disclosed.
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 page
subsequent to the governmental funds balance sheet.
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 page subsequent
to the governmental funds statement of revenues, expenditures and changes in fund balances.
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.
47
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 3
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
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).
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, 2022.
48
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 3
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
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,
2022, if any.
NOTE 4
CASH AND CASH EQUIVALENTS
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 $4,298,457 and the bank balance was $4,790,914.
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.
49
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 4
CASH AND CASH EQUIVALENTS (Continued)
As of June 30, 2022, the carrying amount of the City’s deposits and investments are as follows:
Weighted
Credit
Average
Fair Value
Rating (1)
Maturity (2)
Primary Government
$ 4,298,457
N/A
N/A
3,450
N/A
N/A
73,779,504
AAAF/S1+
0.66 years
Cash on deposit
Cash on hand
Investment Pool 5
Investment Pool 7
23,786,697
AAAF/S1+
0.84 years
Total
$ 101,868,108
(1) Ratings are provided where appliable to indicate associated credit risk.
N/A indicates not applicable
(2) Interest Rate Risk is estimated using the weighted average years to maturity for 3 years.
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.
50
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 4
CASH AND CASH EQUIVALENTS (Continued)
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 Local Government Investment Pool, as listed above, is valued using quoted market prices
(Level 2 inputs).
NOTE 5
RECEIVABLES
Intergovernmental receivables consist principally of amounts due from the State of Arizona for
various taxes, shared revenues, and highway user revenues.
Receivables, net of no allowances for uncollectible as of year-end for the City’s individual major
governmental funds and nonmajor governmental funds in the aggregate are as follows:
Governmental Receivables
General Fund
Special
Projects Fund
Nonmajor
Governmental
Funds
Total
Taxes
111,095
$
-
$
81,494
$
192,589
$
Intergovermental
2,120,311
51,909
344,349
2,516,569
Leases
1,052,702
-
-
1,052,702
Other
266,153
2,947
90,370
359,470
Total
3,550,261
$
54,856
$
516,213
$
4,121,330
$
51
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 5
RECEIVABLES (Continued)
Accounts receivable in the proprietary funds are for service billings and are shown net of an
allowance for doubtful accounts.
Business-type
Water Fund
Sewer Fund
Sanitation
Fund
Total
Receivables
Gross receivables
1,965,854
$
561,569
$
292,301
$
2,819,724
$
Allowance for doubtful
accounts
(866,354)
(259,573)
(103,620)
(1,229,547)
Total
1,099,500
$
301,996
$
188,681
$
1,590,177
$
Lease receivables
As of June 30, 2022, the City is reporting Leases Receivable of $1,052,702 and Deferred Inflows
Related to Leases of $1,132,887. For the fiscal year 2022, the City reported lease revenue of
$149,971 and interest revenue of $31,782, related to lease payments received. From time to time,
the City’s lease contracts include variable lease payments, including residual value guarantees,
that are not included in the lease receivable because they are not fixed in substance. The City
recognized an insignificant amount of revenue related to these variable lease payments and they
have not been further disclosed or included in the measurement of the City’s lease receivables.
The City’s leases are summarized as follows:
Lease
Lease
Receivable
Deferred
Inflows
Related to
Leases
Lease
Revenue
Lease Interest
Revenue
American Tower
237,334
$
231,525
$
5,430
$
6,570
$
Crown Atlantic
141,819
140,987
11,985
4,673
Crown Atlantic
156,851
159,352
16,988
-
Verizon
336,747
424,902
110,518
13,589
Viewpoint
179,951
176,121
5,050
6,950
Total
1,052,702
$
1,132,887
$
149,971
$
31,782
$
In accordance with the provisions of GASB No. 87, each lease was retroactively measured as of
July 1, 2021 at an interest rate of 3.038%, the City’s incremental borrowing rate used for lease
measurements. The descriptions for each lease are listed below.
52
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 5
RECEIVABLES (Continued)
American Tower - On October 17, 2012, the City entered into a five-year lease as Lessor for the
use of real property. The lessee has four extension options for an additional five years and the
City is reasonably certain that the lessee will renew the lease. The lessee is required to make
annual fixed payments of $12,000. The lease has an interest rate of 3.038%. Based on this
agreement, the City is receiving payments through 2039.
Crown Atlantic - On March 15, 2010, the City entered into a five-year lease as Lessor for the use
of real property. The lessee has five extension options for an additional five years and the City is
reasonably certain that the lessee will renew the lease. The lessee is required to make annual
fixed payments of $13,140. The lease has an interest rate of 3.038%. Based on this agreement,
the City is receiving payments through 2033.
Crown Atlantic - On March 1, 1999, the City entered into a five-year lease as Lessor for the use
of real property. The lessee has five extension options for an additional five years and the City is
reasonably certain that the lessee will renew the lease. The lessee is required to make annual
fixed payments of $16,987. The lease has an interest rate of 3.038%. Based on this agreement,
the City is receiving payments through 2033.
Verizon - On February 1, 2017, the City entered into a five-year lease as Lessor for the use of
real property. The lessee has five extension options for an additional five years and the City is
reasonably certain that the lessee will renew the lease. The lessee is required to make annual
fixed payments of $124,107. The lease has an interest rate of 3.038%. Based on this agreement,
the City is receiving payments through 2042.
Viewpoint - On March 6, 2012, the City entered into a twenty-year lease as Lessor for the use of
real property. The lessee has no extension options. The lessee is required to make monthly fixed
payments of $1,000. The lease has an interest rate of 3.038%. Based on this agreement, the City
is receiving payments through 2042.
Future payments due to the City are as follows for the years ending June 30:
Fiscal year
Principal
Payments
Interest
Payments
Total
Payments
2023
60,307
$
31,659
$
91,966
$
2024
61,413
30,864
92,277
2025
62,552
30,045
92,597
2026
63,726
29,201
92,927
2027
155,347
28,332
183,679
2028-2032
245,750
77,711
323,461
2033-2037
288,145
63,736
351,881
2038-2042
109,332
9,568
118,900
2043-2047
6,130
91
6,221
Total
1,052,702
$
301,207
$
1,353,909
$
Governmental Activities
53
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 6
CAPITAL ASSETS
The following table summarizes the changes to capital assets for governmental activities during
the year:
Beginning
Ending
Governmental activities:
Balance
Increases
Decreases
Balance
Capital assets not being depreciated:
Land
9,701,487
$
-
$
-
$
9,701,487
$
Construction in progress
2,011,612
502,658
(1,093,505)
*
1,420,765
Total capital assets not being
depreciated
11,713,099
502,658
(1,093,505)
11,122,252
Capital assets being depreciated:
Buildings and improvements
26,048,118
2,892,267
-
28,940,385
Machinery, equipment and vehicles
9,469,274
1,026,026
-
10,495,300
Land improvements
2,206,420
167,852
-
2,374,272
Infrastructure
59,654,603
1,270,917
-
60,925,520
Total capital assets being
depreciated
97,378,415
5,357,062
-
102,735,477
Less accumulated depreciation:
Buildings and improvements
(4,143,542)
(578,757)
-
(4,722,299)
Machinery, equipment and vehicles
(6,014,958)
(734,877)
-
(6,749,835)
Land improvements
(1,054,211)
(132,212)
-
(1,186,423)
Infrastructure
(20,462,553)
(2,154,355)
-
(22,616,908)
Total accumulated depreciation
(31,675,264)
(3,600,201)
-
(35,275,465)
Total capital assets being
depreciation, net
65,703,151
1,756,861
-
67,460,012
Governmental activities
capital assets, net
77,416,250
$
2,259,519
$
(1,093,505)
$
78,582,264
$
*Includes transfers of $854,351 out of construction in progress into enterprise funds.
Depreciation expense was charged to the functions/programs of the City as follows:
Governmental activities:
General government
1,198,997
$
Public safety
786,216
Public works
1,614,988
Total depreciation expense - governmental activities
3,600,201
$
54
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 6
CAPITAL ASSETS (Continued)
The following table summarizes the changes to capital assets for business-type activities during
the year:
Beginning
Ending
Business-type activities:
Balance
Increases
Decreases
Balance
Capital assets not being depreciated:
Land
$
921,620
$
-
$
-
$
921,620
Construction in progress
1,238,637
49,109
(1,171,321)
116,425
Total capital assets not being
depreciated
2,160,257
49,109
(1,171,321)
1,038,045
Capital assets being depreciated:
Sewer plant
21,071,579
2,315,796
-
23,387,375
Water main and lines
36,840,295
1,533,549
-
38,373,844
Sewer collection system
9,467,840
155,402
-
9,623,242
Land improvements
5,679,346
-
-
5,679,346
Buildings and improvements
1,743,307
673,883
-
2,417,190
Machinery, equipment and vehicles
4,723,730
174,417
(30,490)
4,867,657
Total capital assets being
depreciated
79,526,097
4,853,047
(30,490)
84,348,654
Less accumulated depreciation:
Sewer plant
(7,910,848)
(565,924)
-
(8,476,772)
Water main and lines
(20,425,672)
(1,349,032)
(21,774,704)
Sewer collection system
(7,272,521)
(349,834)
(7,622,355)
Land improvements
(4,558,719)
(101,225)
-
(4,659,944)
Buildings and improvements
(710,097)
(95,453)
-
(805,550)
Machinery, equipment and vehicles
(2,630,162)
(329,968)
30,490
(2,929,640)
Total accumulated depreciation
(43,508,019)
(2,791,436)
30,490
(46,268,965)
Total capital assets being
depreciation, net
36,018,078
2,061,611
-
38,079,689
Business-type activities
capital assets, net
$ 38,178,335
$
2,110,720
$ (1,171,321)
$ 39,117,734
Depreciation expense was charged to the functions/programs of the City as follows:
Business-type activities:
Water fund
1,589,092
$
Sewer fund
1,202,344
Total depreciation expense - business-type activities
2,791,436
$
55
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 7
INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables for the fiscal year ended June 30, 2022 are as follows:
Due From
General Fund
Total
Non-major
15,064
$
15,064
Total
15,064
$
15,064
$
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, 2022 are as follows:
Transfers out:
General Fund
Special
Projects
Fund
Nonmajor
Governmental
Funds
Water Fund
Sewer Fund
Total
General Fund
502,000
$
100,000
$
100,000
$
-
$
-
$
702,000
$
Special Projects Fund
5,004
-
-
-
-
5,004
Water Fund
1,718,000
-
-
-
1,394,000
3,112,000
Sewer Fund
1,824,000
-
-
207,000
-
2,031,000
Sanitation Fund
357,000
-
-
-
-
357,000
Total
4,406,004
$
100,000
$
100,000
$
207,000
$
1,394,000
$
6,207,004
$
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.
The City transferred capital assets from governmental funds to the water fund in the amount of
$854,351 which is presented as a transfer on the Statement of Activities.
56
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 8
LONG TERM LIABILITIES
The following is a summary of changes in long-term obligations for the current fiscal year:
Beginning
Ending
Due Within
Governmental activities:
Balance
Additions
Retirements
Balance
One Year
Bonds payable
20,020,000
$
11,575,000
$
(13,735,000)
$
17,860,000
$
1,265,000
$
Bond premium
1,110,822
1,213,761
(175,777)
2,148,806
-
Total bonds payable
21,130,822
12,788,761
(13,910,777)
20,008,806
1,265,000
Accrued compensated absences
1,221,049
726,846
(920,898)
1,026,997
205,399
Net pension/OPEB liability
20,193,811
-
(5,119,373)
15,074,438
-
Governmental activities
long term liabilities
42,545,682
$
13,515,607
$
(19,951,048)
$
36,110,241
$
1,470,399
$
Business type activities:
Loans payable
17,198,541
$
-
$
(1,455,302)
$
15,743,239
$
1,494,336
$
Accrued compensated absences
130,442
102,697
(86,235)
146,904
29,381
Net pension/OPEB liability
2,735,206
-
(1,276,614)
1,458,592
-
Business-type activities
long term liabilities
20,064,189
$
102,697
$
(2,818,151)
$
17,348,735
$
1,523,717
$
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
$15,743,239 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 all its voter authorized water and sewer debt.
However, the City is no longer required to receive voter approval to issue water and sewer debt.
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.
57
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 8
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 $2,148,806.
Original
Interest
Outstanding
Governmental activities:
issue amount
rate
Maturity
Principal
G.O. Refunding Bonds series 2017
8,385,000
$
2.0-4.0%
7/1/2029
6,435,000
$
G.O. Refunding Bonds series 2022
11,575,000
3.0-5.0%
7/1/2042
11,425,000
Total bonds payable
17,860,000
$
Principal payments on the governmental activities bonds payable at year end are summarized as
follows:
Year ending June 30,
Principal
Interest
2023
1,265,000
$
749,150
$
2024
1,315,000
703,750
2025
1,380,000
650,200
2026
1,430,000
595,000
2027
1,480,000
541,700
2028-2032
4,410,000
1,915,450
2033-2037
2,925,000
1,158,000
2038-2042
3,655,000
429,475
Total
17,860,000
$
6,742,725
$
Governmental Activities
The City currently has no outstanding direct placement borrowings related to governmental-type
activities.
58
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 8
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
Interest
Outstanding
Business-type activities:
issue amount
rate
Maturity
Principal
WIFA loan, DE 050-2005
16,550,000
$
2.93%
7/1/2025
3,039,887
$
WIFA loan, DW 2008
4,040,000
2.75%
7/1/2027
1,570,893
WIFA loan, 920227-13
4,443,017
2.80%
7/1/2032
2,400,696
WIFA loan, 910154-13
500,000
2.80%
7/1/2032
319,891
WIFA loan, 920305-21
8,687,500
1.87%
7/1/2045
8,411,872
Total loans payable
15,743,239
$
Principal and interest payments on business-type activities loans payable at year end are
summarized as follows:
Year ending June 30,
Principal
Interest
2023
1,494,336
$
346,029
$
2024
1,534,438
305,377
2025
1,575,640
263,609
2026
1,504,377
222,360
2027
814,512
192,342
2028-2032
3,182,109
714,388
2033-2037
2,037,766
424,665
2038-2042
1,925,589
248,417
2043
1,674,472
63,478
Total
15,743,239
$
2,780,665
$
Business Type Activities
Pledged revenues – business-type activities. The City has pledged future water and sewer
revenues to repay the outstanding WIFA loans of $15.7 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 all its voter authorized water and sewer debt. However,
the City is no longer required to receive voter approval to issue water and sewer debt. 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 2043.
59
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 8
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 9
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, 2022, the City reported the following aggregate amounts related to pensions and
other postemployment benefits (OPEB) for all plans to which it contributes:
Statement of Net Position and Statement of
Activities
Governmental
Activities
Business-type
Activites
Total
Net OPEB (asset)
474,149
$
56,884
$
531,033
$
Net pension liabilities
15,074,438
1,458,592
16,533,030
Deferred outflows of resources
related to pensions and OPEB
8,761,038
517,970
9,279,008
Deferred inflows of resources
related to pensions and OPEB
6,253,918
531,374
6,785,292
Pension and OPEB expense
1,934,843
125,869
2,060,712
The City reported $4,566,015 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.
60
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
Benefits provided – The ASRS provides retirement, health insurance premium supplement, long-
term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits
are calculated on the basis of age, average monthly compensation, and service credit as follows:
Retirement
Initial membership date:
ASRS
Before July 1, 2011
On or after July 1, 2011
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
*with actuarially reduced benefits.
Benefit percent per
year of service
2.1% to 2.3%
2.1% to 2.3%
Years of service and
age required to
receive benefit
Final average salary is
based on
Highest 36 consecutive months of last
120 months
Highest 60 consecutive months of
last 120 months
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.
61
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
Contributions – In accordance with state statutes, annual actuarial valuations determine active
member and employer contribution requirements. The combined active member and employer
contribution rates are expected to finance the costs of benefits employees earn during the year,
with an additional amount to finance any unfunded accrued liability. For the year ended June 30,
2022, statute required active ASRS members to contribute at the actuarially determined rate of
12.41 percent (12.22 percent for retirement and 0.19 percent for long-term disability) of the
members' annual covered payroll, and statute required the City to contribute at the actuarially
determined rate of 12.41 percent (12.01 percent for retirement, 0.21 percent for health insurance
premium benefit, and 0.19 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 10.22 percent (10.13 percent for retirement and 0.09 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, 2022, were $952,196, $16,650, and $15,064, respectively.
Liability – At June 30, 2022, the City reported the following asset and liabilities for its
proportionate share of the ASRS' net pension/OPEB liability.
ASRS
Net pension/OPEB
(Asset) Liability
Pension
7,716,861
Health insurance premium benefit
(284,578)
Long-term disability
12,076
The net asset and net liabilities were measured as of June 30, 2021. 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, 2020, to the measurement date of June
30, 2021. The total liabilities as of June 30, 2021, reflect changes in actuarial assumptions based
on the results of an actuarial experience study for the 5-year period ended June 30, 2020,
including decreasing the discount rate from 7.5 percent to 7.0 percent and changing the projected
salary increases from 2.7-7.2 percent to 2.9-8.4 percent.
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, 2021.
62
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
The City's proportion measured as of June 30, 2021, and the change from its proportions
measured as of June 30, 2020, were:
ASRS
Proportion
June 30, 2021
Increase (decrease) from
June 30, 2020
Pension
0.05873%
0.00077%
Health insurance premium benefit
0.05841%
0.00120%
Long-term disability
0.05850%
0.00100%
Expense – For the year ended June 30, 2022, the City recognized pension and OPEB expense:
ASRS
Pension/OPEB
Expense
Pension
686,302
$
Health insurance premium benefit
(32,776)
Long-term disability
8,944
Deferred outflows/inflows of resources – At June 30, 2022, the City reported deferred outflows of
resources and deferred inflows of resources related to pensions and OPEB from the following
sources:
ASRS
Deferred
Deferred
Deferred
Deferred
Deferred
Deferred
Outflows of
Inflows of
Outflows of
Inflows of
Outflows of
Inflows of
Resources
Resources
Resources
Resources
Resources Resources
Differences between expected and
actual experience
117,636
$
-
$
-
$
98,692
$
3,488
$
984
$
Changes of assumptions or other inputs
-
-
14,109
11,506
3,862
15,216
Net difference between projected and actual
earnings on pension plan investments
1,004,411
2,444,973
-
105,564
-
8,363
Changes in proportion and differences
between City contributions and
proportionate share of contributions
55,789
78,867
391
151
415
768
City contributions subsequent to the
measurement date
952,196
-
16,650
-
15,064
-
Total
2,130,032
$
2,523,840
$
31,150
$
215,913
$
22,829
$
25,331
$
Pension
Health Insurance
Premium Benefit
Long-term Disability
63
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
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, 2023. 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:
Years ending June 30,
Pension
Health
Insurance
Premium
Benefit
Long-term
Disability
2023
45,189
$
(47,241)
$
(2,378)
$
2024
(9,646)
(45,276)
(2,232)
2025
(538,991)
(49,645)
(2,534)
2026
(842,556)
(54,849)
(3,802)
2027
-
(4,402)
(1,469)
Thereafter
-
-
(5,151)
Actuarial Assumptions – The significant actuarial assumptions used to measure the total
pension liability are as follows:
Actuarial valuation date
June 30, 2020
Actuarial roll forward date
June 30, 2021
Actuarial cost method
Entry Age Normal
Investment rate of return
7.0%
Projected salary increases
2.9 – 8.4% for pensions
Inflation
2.3%
Permanent benefit increase
Included for pensions
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, 2020, valuation were based on the results of an
actuarial experience study for the 5-year period ended June 30, 2020.
64
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on ASRS plan investments was determined to be 7.0
percent using a building-block method in which best-estimate ranges of expected future real rates
of return (expected returns, net of plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage 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:
Long-Term
ASRS
Target
Expected Geometric
Asset Class
Allocation
Real Rate of Return
Equity
50%
4.90%
Fixed Income - Credit
20%
5.20%
Fixed Income - Interest rate sensitive
10%
0.70%
Real estate
20%
5.70%
Total
100%
Discount rate – At June 30, 2021, the discount rate used to measure the ASRS total
pension/OPEB liability was 7.0 percent, which was a decrease of 0.5 from the discount rate used
as of June 30, 2020. 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.
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 7.0 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 (6.0 percent) or 1 percentage point higher (8.0
percent) than the current rate:
Current
1% Decrease
Discount Rate
1% increase
ASRS
(6.0%)
(7.0%)
(8.0%)
City's proportionate share of the
Net pension liability
12,137,976
$
7,716,861
$
4,030,874
$
Net insurance premium benefit liability (asset)
(188,420)
(284,578)
(366,344)
Net long-term disability liability
15,724
12,076
8,546
65
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
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.
66
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
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:
PSPRS
Initial membership date:
Retirement and
Disability
Before January 1, 2012
On or after
January 1, 2012 and
before July 1, 2017
Years of service
20 years of service, any age
25 years of service or 15
and age required to
15 years of service, age 62
years of credited service,
receive benefit
age 52.5
Final average
Highest 36 consecutive
Highest 60 consecutive
salary is based on
months of last 20 years
months of last 20 years
Benefit percent
Normal
50% less 2.0% for each year
1.5% to 2.5% per year of credited
Retirement
of credited service less than 20
service, not to exceed 80%
years OR plus 2.0% to 2.5% for
each year of credited service
over 20 years, not to exceed 80%
Accidental Disability
Retirement
Catastrophic Disability
Retirement
Ordinary Disability
Retirement
Survivor Benefits
Retired Members
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
50% or normal retirement, whichever is greater
90% for the first 60 months then reduced to either 62.5%
or normal retirement, whichever is greater
80% to 100% of retired member's pension benefit
Normal retirement calculated with actual years of credited service or 20 years
of credited service, whichever is greater, mulitiplied by service (not to exceed
20 years) divided by 20 years of credited
67
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
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
Employees covered by benefit terms – At June 30, 2022, the following employees were
covered by the agent plans’ benefit terms:
PSPRS
PSPRS
Fire
Police
Inactive employees or beneficiaries
currently receiving benefits
3
20
Inactive employees entitled to
by not yet receiving benefits
3
8
Active employees
22
31
Total
28
59
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, 2022 are indicated below. Rates are a
percentage of active members’ annual covered payroll.
PSPRS
PSPRS
Fire
Police
Active members - Pension
7.65% - 11.65%
7.65% - 11.65%
City
Pension
19.09%
36.48%
Health insurance permium benefit
0.11%
0.39%
In addition, statute required the City to contribute at the actuarially determined rate of 19.14% for
police and 3.52% 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.
68
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
The City’s contributions to the plans for the year ended June 30, 2022, were:
PSPRS
PSPRS
Pension - Contributions
Fire
Police
PSPRS
748,204
$
2,817,828
$
Health Insurance Permium Benefit - Contributions
PSPRS
4,101
11,972
During fiscal year 2022, the City paid for PSPRS pension and OPEB contributions 100% from the
general fund.
Liability – At June 30, 2022, the City reported the following assets and liabilities.
Net pension
(Asset) Liability
Net OPEB (Asset)
Liability
PSPRS Fire
300,843
$
(100,400)
$
PSPRS Police
8,503,250
(146,055)
The net assets and net liabilities were measured as of June 30, 2021, and the total liability used
to calculate the net asset or liability was determined by an actuarial valuation as of that date.
Actuarial assumptions – The significant actuarial assumptions used to measure the total
pension/OPEB liability are as follows:
Actuarial valuation date
June 30, 2021
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
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, 2021, valuation was based on the results of an
actuarial experience study for the 5-year period ended June 30, 2017.
69
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
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:
PSPRS
Long-Term
Target
Expected Geometric
Asset Class
Allocation
Rate of Return
U.S. public equity
24%
4.06%
International public equity
16%
5.20%
Global private equity
20%
7.67%
Other assets (capital apprecaition)
7%
5.43%
Core bonds
2%
0.42%
Private credit
20%
5.74%
Diversifying strategies
10%
3.99%
Cash-mellon
1%
-0.31%
Total
100.00%
Discount Rate –At June 30, 2021, the discount rate used to measure the PSPRS total
pension/OPEB liability was 7.30 percent. 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.
70
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in the net pension/OPEB liability – the change in net pension liability for the year
ended June 30, 2022 is as follows:
PSPRS - Fire
PSPRS - Fire
Plan
Plan
Total
Fiduciary
Net
Total
Fiduciary
Net
Pension
Net
Pension
OPEB
Net
OPEB
Liability
Position
Liability
Liability
Position
Liability (Asset)
(a)
(b)
(a) - (b)
(a)
(b)
(a) - (b)
Balances at June 30, 2021
9,571,414
$
7,922,036
$
1,649,378
$
114,029
$
174,490
$
(60,461)
$
Changes for the year:
Service Cost
437,216
-
437,216
8,136
-
8,136
Interest on the total liability
725,027
-
725,027
8,918
-
8,918
Differences between expected
and actual experience in the
measurement of the liability
365,884
-
365,884
(5,430)
-
(5,430)
Contributions - employer
-
424,177
(424,177)
-
3,935
(3,935)
Contributions - employee
-
197,135
(197,135)
-
-
-
Net investment income
-
2,265,911
(2,265,911)
-
47,825
(47,825)
Benefit payments, including
refunds of employee contributions
(153,518)
(153,518)
-
-
-
-
Administrative expense
-
(10,561)
10,561
-
(197)
197
Net changes
1,374,609
2,723,144
(1,348,535)
11,624
51,563
(39,939)
Balances at June 30, 2022
10,946,023
$
10,645,180
$
300,843
$
125,653
$
226,053
$
(100,400)
$
Increase (Decrease)
Increase (Decrease)
Pension
Health insurance premium benefit
71
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Continued)
PSPRS – Police
PSPRS - Police
Plan
Plan
Total
Fiduciary
Net
Total
Fiduciary
Net
Pension
Net
Pension
OPEB
Net
OPEB
Liability
Position
Liability
Liability
Position
Liability (Asset)
(a)
(b)
(a) - (b)
(a)
(b)
(a) - (b)
Balances at June 30, 2021
25,463,079
$
14,537,856
$
10,925,223
$
388,729
$
390,198
$
(1,469)
$
Changes for the year:
Service Cost
744,909
-
744,909
15,932
-
15,932
Interest on the total liability
1,873,509
-
1,873,509
29,212
-
29,212
Differences between expected
and actual experience in the
measurement of the liability
760,793
-
760,793
(72,950)
-
(72,950)
Contributions - employer
-
1,253,338
(1,253,338)
-
10,770
(10,770)
Contributions - employee
-
421,831
(421,831)
-
-
-
Net investment income
-
4,145,272
(4,145,272)
-
106,448
(106,448)
Benefit payments, including
refunds of employee contributions
(1,086,951)
(1,086,951)
-
(9,002)
(9,002)
-
Administrative expense
-
(19,257)
19,257
-
(438)
438
Other changes
-
-
-
-
-
-
Net changes
2,292,260
4,714,233
(2,421,973)
(36,808)
107,778
(144,586)
Balances at June 30, 2022
27,755,339
$
19,252,089
$
8,503,250
$
351,921
$
497,976
$
(146,055)
$
Increase (Decrease)
Increase (Decrease)
Pension
Health insurance premium benefit
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:
Current
1% Decrease
Discount Rate
1% increase
PSPRS - Fire
6.30%
7.30%
8.30%
Net pension liability (asset)
2,207,764
$
300,843
$
(1,227,812)
$
Net OPEB (asset) liability
(82,600)
(100,400)
(115,286)
Current
1% Decrease
Discount Rate
1% increase
PSPRS - Police
6.30%
7.30%
8.30%
Total pension liability
12,578,993
$
8,503,250
$
5,204,520
$
Net OPEB (asset) liability
(102,503)
(146,055)
(182,537)
72
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
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, 2022, the City recognized the following pension and
OPEB expense:
Pension expense
OPEB expense
PSPRS Fire
167,342
$
(7,291)
$
PSPRS Police
1,256,791
(18,600)
Deferred outflows/inflows of resources – At June 30, 2022, the City reported deferred outflows
of resources and deferred inflows of resources related to pensions and OPEB from the following
sources:
Deferred
Deferred
Deferred
Deferred
Outflows of
Inflows of
Outflows of
Inflows of
PSPRS - Fire
Resources
Resources
Resources
Resources
Differences between expected and actual experience
765,882
$
772,871
$
-
$
46,226
$
Changes of assumptions or other inputs
336,151
-
1,040
9,009
Net difference between projected and actual
earnings on pension plan investments
-
996,051
-
20,366
City contributions subsequent to the
measurement date
748,204
-
4,101
-
Total
1,850,237
$
1,768,922
$
5,141
$
75,601
$
Deferred
Deferred
Deferred
Deferred
Outflows of
Inflows of
Outflows of
Inflows of
PSPRS - Police
Resources
Resources
Resources
Resources
Differences between expected and actual experience
1,938,285
$
156,578
$
28,645
$
127,304
$
Changes of assumptions or other inputs
440,120
-
2,485
10,849
Net difference between projected and actual
earnings on pension plan investments
-
1,835,579
-
45,375
City contributions subsequent to the
measurement date
2,817,828
-
11,972
-
Total
5,196,233
$
1,992,157
$
43,102
$
183,528
$
Pension
Health insurance premium benefit
73
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 9
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, 2023. 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 ending June 30,
Pension
Health
Pension
Health
2023
(172,238)
$
(10,624)
$
140,659
$
(33,182)
$
2024
(177,857)
(10,750)
235,172
(33,208)
2025
(207,250)
(11,379)
106,395
(27,722)
2026
(329,637)
(13,449)
(305,956)
(32,157)
2027
(3,672)
(6,459)
209,978
(15,708)
Thereafter
223,765
(21,900)
-
(10,421)
PSPRS Fire
PSPRS Police
NOTE 10
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.
74
CITY OF EL MIRAGE, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2022
NOTE 11
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, 2022.
The City received federal funding for specific purposes that are subject to review and audit by the
grantor agencies. Such audits could result in disallowances under the terms of the grants. There
are no required disbursements identified or recorded at the date of these financial statements.
As of June 30, 2022 the City had the following amounts encumbered for unperformed contracts
to be completed after June 30, 2022: General Fund $172,220, Streets (HURF) $106,255, Special
Projects $30,435, Streets (Capital Projects) $1,111,856, and Water $116,425.
At year end, the City had the following major construction projects/commitments open:
Project
Estimated Cost
Remaining
Construction in
Progress
Dysart road improvements
13,847,500
$
1,111,856
$
121st ave and Cheryl Dr improvements
326,723
44,277
Walking trail - drainage area cactus-dysart
972,344
27,656
Right of way maintenance equipment
32,724
7,276
Site aesthetic enhancements
97,825
2,175
Roadway drainage improvements at 1st avenue
170,980
19,020
Speed radar sign installations
4,318
35,682
Smartgov software
12,705
23,795
Fleet division building replacement
82,250
146,250
Paramedic/firefighter - assistance listing 21.027
35,500
2,779
75
Financial Section
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
General Fund
Special Projects
PENSION SCHEDULES
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –
BUDGET AND ACTUAL – GENERAL FUND
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Taxes
City sales tax
12,000,000
$
12,000,000
$
14,760,486
$
2,760,486
$
Property taxes
2,600,000
2,600,000
2,622,006
22,006
Franchise taxes
700,000
700,000
761,830
61,830
Total taxes
15,300,000
15,300,000
18,144,322
2,844,322
Licenses and permits
535,000
535,000
1,050,534
515,534
Intergovernmental:
State sales tax
4,200,000
4,200,000
5,052,015
852,015
Auto lieu tax
1,660,000
1,660,000
1,672,786
12,786
Urban revenue sharing
4,665,000
4,665,000
4,712,557
47,557
Other intergovernmental
45,000
45,000
53,515
8,515
Total intergovernmental
10,570,000
10,570,000
11,490,873
920,873
Charges for services
235,000
235,000
208,138
(26,862)
Fees
955,000
955,000
1,400,061
445,061
Fines and forfeitures
15,000
15,000
265,865
250,865
Interest earnings
Interest earnings
65,000
65,000
135,750
70,750
Change in the fair value of investments
-
-
(457,781)
(457,781)
Other Revenues
Contributions and donations
-
-
1,076
1,076
Miscellaneous revenues
15,000
15,000
675,362
660,362
Total other revenues
15,000
15,000
676,438
661,438
TOTAL REVENUES
27,690,000
27,690,000
32,914,200
5,224,200
EXPENDITURES
General government
Administration
1,709,000
1,709,000
1,586,011
122,989
City clerk
274,500
300,000
279,116
20,884
Community development
1,846,500
1,846,500
1,581,251
265,249
Finance
870,500
777,500
657,186
120,314
Human resources
511,500
513,000
463,330
49,670
Information systems
983,500
983,500
914,918
68,582
Mayor and council
308,000
308,000
236,747
71,253
Nondepartmental
4,875,000
4,031,383
2,997,685
1,033,698
Public works
2,189,500
2,189,500
2,171,408
18,092
Total general government
13,568,000
12,658,383
10,887,652
1,770,731
Budgeted Amounts
See accompanying notes to the budgetary comparison schedules.
78
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –
BUDGET AND ACTUAL – GENERAL FUND (Continued)
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Public safety
Police
10,857,500
11,024,865
10,407,524
617,341
Fire
4,706,500
5,152,000
4,970,961
181,039
Court
1,112,500
1,112,500
798,562
313,938
Total public safety
16,676,500
17,289,365
16,177,047
1,112,318
Capital outlay
4,257,500
4,452,700
3,254,160
1,198,540
TOTAL EXPENDITURES
34,502,000
34,400,448
30,318,859
4,081,589
Excess (deficiency) of revenues
over (under) expenditures
(6,812,000)
(6,710,448)
2,595,341
9,305,789
OTHER FINANCING SOURCES (USES)
Transfers in
12,430,000
12,430,000
4,406,004
(8,023,996)
Transfers out
(702,000)
(702,000)
(702,000)
-
Total other financing sources (uses)
11,728,000
11,728,000
3,704,004
(8,023,996)
Net change in fund balance
4,916,000
5,017,552
6,299,345
1,281,793
Fund balance - beginning of year
35,825,000
35,825,000
43,331,265
7,506,265
Fund balance - end of year
40,741,000
$
40,842,552
$
49,630,610
$
8,788,058
$
Budgeted Amounts
See accompanying notes to the budgetary comparison schedules.
79
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –
BUDGET AND ACTUAL – SPECIAL PROJECTS FUND
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Intergovernmental revenues
10,547,000
$
10,547,000
$
791,366
$
(9,755,634)
$
Interest earnings
Interest earnings
-
-
19,821
19,821
Change in the fair value of investments
-
-
(143,103)
(143,103)
Other revenues
10,000,000
10,000,000
188,270
(9,811,730)
Total revenues
20,547,000
20,547,000
856,354
(19,690,646)
EXPENDITURES
General government
11,478,000
11,478,000
64,231
11,413,769
Public safety
525,000
525,000
1,129,947
(604,947)
Public works/streets
-
-
143,920
(143,920)
Capital outlay
714,000
714,000
882,567
(168,567)
Total expenditures
12,717,000
12,717,000
2,220,665
10,496,335
Excess (deficiency) of revenues
over (under) expenditures
7,830,000
7,830,000
(1,364,311)
(9,194,311)
OTHER FINANCING
SOURCES (USES)
Transfers in
100,000
100,000
100,000
-
Transfers out
(8,531,000)
(8,531,000)
(5,004)
8,525,996
Total other financing sources
and (uses)
(8,431,000)
(8,431,000)
94,996
8,525,996
Net change in fund balance
(601,000)
(601,000)
(1,269,315)
(668,315)
Fund balance - beginning of year
601,000
601,000
6,252,318
5,651,318
Fund balance - end of year
-
$
-
$
4,983,003
$
4,983,003
$
Budgeted Amounts
See accompanying notes to the budgetary comparison schedules.
81
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO THE BUDGETARY COMPARISON SCHEDULES
Year Ended June 30, 2022
NOTE 1:
BUDGETARY BASIS OF ACCOUNTING
Arizona Revised Statutes requires the City to prepare and adopt a balanced budget annually for
each governmental fund. The City Council must approve such operating budgets on or before the
third Monday in July to allow sufficient time for the legal announcements and hearings required
for the adoption of the property tax levy on the third Monday in August. Arizona Revised Statute
prohibits expenditures or liabilities in excess of the amounts budgeted. Expenditures may not
legally exceed appropriations at the department level. In certain circumstances, transfers of
appropriations between departments or from contingency accounts to other departments may be
made upon the City Councils approval. With the exceptions of the General Fund, each fund
includes only one department. The City’s budget is prepared on a basis consistent with generally
accepted accounting principles.
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
32,546,862
$
29,520,297
$
49,155,497
$
Activity budgeted as Court Special Revenue Fund
367,338
798,562
475,113
Statement of Revenues, Expendtures and Changes in
Fund Balances - General Fund - GAAP
32,914,200
$
30,318,859
$
49,630,610
$
General Fund
82
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION/OPEB LIABILITY (ASSET)
Year Ended June 30, 2022
Arizona Retirement System
2014
2022
2021
2020
2019
2018
2017
2016
2015
through
ASRS Pension
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
2013
City's proportion of the net pension liability
0.058730%
0.059500%
0.058300%
0.059200%
0.059400%
0.061520%
0.061230%
0.063310%
Information
City's proportionate share of the net
pension liability
7,716,861
$
10,309,279
$
8,483,328
$
8,256,317
$
9,253,362
$
9,929,946
$
9,537,628
$
9,163,794
$
not available
City's covered payroll
6,873,556
6,381,844
5,982,621
5,832,827
5,699,811
5,570,055
5,677,172
5,598,748
City's proportionate share of the net pension
liability as a percentage of its covered payroll
112.27%
161.54%
141.80%
141.55%
162.35%
178.27%
168.00%
163.68%
Plan fiduciary net position as a percentage
of the total pension liability
78.58%
69.33%
73.24%
73.40%
69.92%
67.06%
68.35%
69.49%
2016
2022
2021
2020
2019
2018
2017
through
ASRS - Health Insurance Premium Benefit
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
2013
City's proportion of the net OPEB
0.058410%
0.059600%
0.058420%
0.059360%
0.059340%
0.059337%
Information
City's proportionate share of the net OPEB
(284,578)
$
(42,197)
$
(16,145)
$
(21,375)
$
(32,305)
$
(17,158)
$
not available
City's covered payroll
6,873,556
6,381,844
5,982,621
5,832,827
5,699,811
5,570,055
City's proportionate share of the net OPEB as a
percentage of its covered payroll
-4.14%
-0.66%
-0.27%
-0.37%
-0.57%
-0.31%
Plan fiduciary net position as a percentage of the
total OPEB liabitity
130.24%
104.33%
101.62%
102.20%
103.57%
98.02%
Reporting Fiscal Year
(Measurement Date)
84
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION/OPEB LIABILITY (ASSET)
(Continued) Year Ended June 30, 2022
2016
2022
2021
2020
2019
2018
2017
through
ASRS - Long-term Disability
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
2013
City's proportion of the net OPEB
0.058490%
0.059500%
0.058320%
0.059270%
0.059190%
0.059191%
Information
City's proportionate share of the net OPEB
12,076
$
45,137
$
37,992
$
30,969
$
21,455
$
21,271
$
not available
City's covered payroll
6,873,556
6,381,844
5,982,621
5,832,827
5,699,811
5,570,055
City's proportionate share of the net OPEB as a
percentage of its covered payroll
0.18%
0.71%
0.64%
0.53%
0.38%
0.38%
Plan fiduciary net position as a percentage of the
total OPEB liabitity
90.38%
68.01%
72.85%
77.83%
84.44%
85.17%
85
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE TOWN’S NET PENSION/OPEB LIABILITY AND RELATED RATIOS - AGENT PENSION PLAN
Year Ended June 30, 2022
PSPRS Fire - Pension
2014
2022
2021
2020
2019
2018
2017
2016
2015
through
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
2013
Total pension liability
Service cost
437,216
$
408,259
$
443,749
$
414,433
$
386,340
$
317,068
$
336,932
$
318,083
$
Information
Interest on the total pension liability
725,027
646,493
570,104
529,468
505,857
465,137
400,223
317,292
not available
Changes on benefit terms
-
-
-
-
67,195
625,097
-
16,409
Differences between expected and actual
experience in the measurement of the
pension liability
365,884
151,811
147,078
(423,180)
(386,730)
(757,647)
270,625
361,588
Changes of assumptions or other inputs
-
-
194,141
-
20,032
278,976
-
228,856
Benefit payments, including refunds
of employee contributions
(153,518)
(165,904)
(169,342)
(246,904)
(146,164)
(141,470)
(200,362)
(190,050)
Net change in total pension liability
1,374,609
1,040,659
1,185,730
273,817
446,530
787,161
807,418
1,052,178
Total pension liability - beginning
9,571,414
8,530,755
7,345,025
7,071,208
6,624,678
5,837,517
5,030,099
3,977,921
Total pension liability - ending (a)
10,946,023
$
9,571,414
$
8,530,755
$
7,345,025
$
7,071,208
$
6,624,678
$
5,837,517
$
5,030,099
$
Plan fiduciary net position
Contributions - employer
424,177
$
380,514
$
800,812
$
668,971
$
330,799
$
281,360
$
225,909
$
258,272
$
Contributions - employee
197,135
172,106
168,004
167,731
187,125
202,337
199,018
182,336
Net investment income
2,265,911
96,947
349,715
397,321
572,712
27,547
159,295
464,743
Benefit payments, including refunds
of employee contributions
(153,518)
(165,904)
(169,342)
(246,904)
(146,164)
(141,470)
(200,362)
(190,050)
Hall/Parker Settlement
-
-
-
(232,700)
-
-
-
-
Administrative expense
(10,561)
(7,905)
(7,073)
(6,747)
(5,468)
(4,363)
(4,277)
-
Other changes
-
-
-
(11,097)
(146,642)
(223,413)
244,344
(98,445)
Net change in plan fiduciary net position
2,723,144
475,758
1,142,116
736,575
792,362
141,998
623,927
616,856
Plan fiduciary net position - beginning
7,922,036
7,455,911
6,315,711
5,579,136
4,786,774
4,644,776
4,020,849
3,403,993
Adjustment to beginning of year
-
(9,633)
(1,916)
Plan fiduciary net position - ending (b)
10,645,180
$
7,922,036
$
7,455,911
$
6,315,711
$
5,579,136
$
4,786,774
$
4,644,776
$
4,020,849
$
Town's net pension liability - ending (a) - (b)
300,843
$
1,649,378
$
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
97.25%
82.77%
87.40%
85.99%
78.90%
72.26%
79.57%
79.94%
Covered payroll
2,141,072
$
1,877,161
$
1,773,739
$
1,812,916
$
1,725,504
$
1,687,430
$
1,765,349
$
1,735,840
$
Town's net pension liability as a percentage
of covered payroll
14.05%
87.87%
60.60%
56.78%
86.47%
108.92%
67.56%
58.14%
(Measurement Date)
Reporting Fiscal Year
86
See accompanying notes to the pension/OPEB plan schedules.
PSPRS Police - Pension
2014
2022
2021
2020
2019
2018
2017
2016
2015
through
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
2013
Total pension liability
Service cost
744,909
$
766,394
$
736,361
$
611,179
$
641,361
$
579,406
$
530,107
$
522,850
$
Information
Interest on the total pension liability
1,873,509
1,722,174
1,577,961
1,289,327
1,245,009
1,108,770
1,006,969
849,641
not available
Changes on benefit terms
-
-
-
-
127,782
894,728
-
190,732
Differences between expected and actual
experience in the measurement of the
pension liability
760,793
582,250
(51,194)
2,176,715
(760,486)
(247,754)
292,348
(284,861)
Changes of assumptions or other inputs
-
-
728,190
-
143,402
683,819
-
1,185,003
Benefit payments, including refunds
of employee contributions
(1,086,951)
(865,527)
(641,925)
(573,147)
(544,380)
(604,179)
(510,323)
(415,304)
Net change in total pension liability
2,292,260
2,205,291
2,349,393
3,504,074
852,688
2,414,790
1,319,101
2,048,061
Total pension liability - beginning
25,463,079
23,257,788
20,908,395
17,404,321
16,551,633
14,136,843
12,817,742
10,769,681
Total pension liability - ending (a)
27,755,339
$
25,463,079
$
23,257,788
$
20,908,395
$
17,404,321
$
16,551,633
$
14,136,843
$
12,817,742
$
Plan fiduciary net position
Contributions - employer
1,253,338
$
1,326,972
$
1,583,042
$
1,365,177
$
798,249
$
809,325
$
593,877
$
531,345
$
Contributions - employee
421,831
390,184
327,451
364,283
454,373
346,149
321,510
326,197
Net investment income
4,145,272
177,191
649,317
739,044
1,044,757
47,376
273,401
839,169
Benefit payments, including refunds
of employee contributions
(1,086,951)
(865,527)
(641,925)
(573,147)
(544,380)
(604,179)
(510,323)
(415,304)
Hall/Parker Settlement
-
-
-
(417,731)
-
-
-
-
Administrative expense
(19,257)
(14,447)
(12,273)
(11,948)
(9,644)
(7,217)
(7,057)
-
Other changes
-
-
-
34,476
(92,977)
15,359
23,149
(340,763)
Net change in plan fiduciary net position
4,714,233
1,014,373
1,905,612
1,500,154
1,650,378
606,813
694,557
940,644
Plan fiduciary net position - beginning
14,537,856
13,523,482
11,625,612
10,125,458
8,475,080
7,868,267
7,173,710
6,233,066
Adjustment to beginning of year
-
1
(7,742)
-
-
-
-
-
Plan fiduciary net position - ending (b)
19,252,089
$
14,537,856
$
13,523,482
$
11,625,612
$
10,125,458
$
8,475,080
$
7,868,267
$
7,173,710
$
Town's net pension liability - ending (a) - (b)
8,503,250
$
10,925,223
$
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
69.36%
57.09%
58.15%
55.60%
58.18%
51.20%
55.66%
55.97%
Covered payroll
2,848,048
$
3,147,689
$
3,162,313
$
2,733,357
$
2,824,133
$
2,968,270
$
2,769,201
$
2,738,836
$
Town's net pension liability as a percentage
of covered payroll
298.56%
347.09%
307.82%
339.61%
257.74%
272.10%
226.37%
206.07%
(Measurement Date)
Reporting Fiscal Year
87
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION/OPEB LIABILITY(ASSET) AND RELATED RATIOS –
AGENT PLAN (Continued)
Year Ended June 30, 2022
PSPRS Fire - Health Insurance Premium
Benefit
2017
2022
2021
2020
2019
2018
through
(2021)
(2020)
(2019)
(2018)
(2017)
2013
Total OPEB liability
Service cost
8,136
$
7,878
$
5,801
$
6,164
$
5,694
$
Information
Interest on the total OPEB liability
8,918
7,919
8,677
8,463
9,656
not available
Changes on benefit terms
-
-
-
-
1,628
Difference between expected and actual
experience of the total net OPEB liability
(5,430)
(898)
(28,153)
(14,462)
(15,726)
Changes of assumptions or other inputs
-
-
1,352
-
(15,859)
Benefit payments
-
-
-
-
-
Net change in total OPEB liability
11,624
14,899
(12,323)
165
(14,607)
Total OPEB liability - beginning
114,029
99,130
111,453
111,288
125,895
Total OPEB liability - ending (a)
125,653
$
114,029
$
99,130
$
111,453
$
111,288
$
Plan fiduciary net position
Contributions - employer
3,935
$
2,827
$
3,492
$
4,208
$
5,693
$
Net investment income
47,825
2,136
8,519
10,009
14,588
Benefit payments
-
-
-
-
-
Administrative expense
(197)
(174)
(147)
(152)
(130)
Net change in plan fiduciary net position
51,563
4,789
11,864
14,065
20,151
Plan fiduciary net position - beginning
174,490
169,701
155,922
141,857
121,706
Adjustment to beginning of year
-
-
1,915
-
-
Plan fiduciary net position - ending (b)
226,053
$
174,490
$
169,701
$
155,922
$
141,857
$
Town's net pension liability - ending (a) - (b)
(100,400)
$
(60,461)
$
(70,571)
$
(44,469)
$
(30,569)
$
Plan fiduciary net position as a percentage of
the total OPEB liability
179.90%
153.02%
171.19%
139.90%
127.47%
Covered payroll
2,141,072
$
1,877,161
$
1,773,739
$
1,812,916
$
1,725,504
$
Town's net OPEB liability as a percentage of
covered payroll
-4.69%
-3.22%
-3.98%
-2.45%
-1.77%
Reporting Fiscal Year
(Measurement Date)
88
See accompanying notes to the pension/OPEB plan schedules.
PSPRS Police - Health Insurance Premium
Benefit
2017
2022
2021
2020
2019
2018
through
(2021)
(2020)
(2019)
(2018)
(2017)
2013
Total OPEB liability
Service cost
15,932
$
16,051
$
10,113
$
10,387
$
10,167
$
Information
Interest on the total OPEB liability
29,212
24,239
27,919
25,869
27,320
not available
Changes on benefit terms
-
-
-
-
3,290
Difference between expected and actual
experience of the total net OPEB liability
(72,950)
40,104
(92,103)
(8,286)
(11,227)
Changes of assumptions or other inputs
-
-
3,972
-
(38,439)
Benefit payments
(9,002)
(6,323)
(4,828)
(5,543)
(6,280)
Net change in total OPEB liability
(36,808)
74,071
(54,927)
22,427
(15,169)
Total OPEB liability - beginning
388,729
314,658
369,585
347,158
362,327
Total OPEB liability - ending (a)
351,921
$
388,729
$
314,658
$
369,585
$
347,158
$
Plan fiduciary net position
Contributions - employer
10,770
$
13,025
$
12,412
$
6,289
$
11,219
$
Net investment income
106,448
4,760
18,821
22,528
33,784
Benefit payments
(9,002)
(6,323)
(4,828)
(5,543)
(6,280)
Administrative expense
(438)
(387)
(325)
(343)
(298)
Net change in plan fiduciary net position
107,778
11,075
26,080
22,931
38,425
Plan fiduciary net position - beginning
390,198
379,123
345,301
322,370
283,945
Adjustment to beginning of year
-
-
7,742
Plan fiduciary net position - ending (b)
497,976
$
390,198
$
379,123
$
345,301
$
322,370
$
Town's net pension liability - ending (a) - (b)
(146,055)
$
(1,469)
$
(64,465)
$
24,284
$
24,788
$
Plan fiduciary net position as a percentage of
the total OPEB liability
141.50%
100.38%
120.49%
93.43%
92.86%
Covered payroll
2,848,048
$
3,147,689
$
3,162,313
$
2,733,357
$
2,824,133
$
Town's net OPEB liability as a percentage of
covered payroll
-5.13%
-0.05%
-2.04%
0.89%
0.88%
Reporting Fiscal Year
(Measurement Date)
89
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION/OPEB CONTRIBUTIONS
Year Ended June 30, 2022
ASRS - Pension
2014
through
2022
2021
2020
2019
2018
2017
2016
2015
2013
Statutorily required contribution
952,196
$
771,446
$
744,652
$
687,381
$
641,354
$
624,521
$
604,351
$
618,244
$
Information
City's contributions in relation to the
not available
statutorily required contribution
(952,196)
(771,446)
(744,652)
(687,381)
(641,354)
(624,521)
(604,351)
(618,244)
City's contribution deficiency
(excess)
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
City's covered payroll
7,928,360
$
6,873,556
$
6,381,844
$
5,982,621
$
5,832,827
$
5,699,811
$
5,570,055
$
5,677,172
$
City's contributions as a percentage
of covered payroll
12.01%
11.22%
11.67%
11.49%
11.00%
10.96%
10.85%
10.89%
ASRS - Health Insurance Premium
Benefit
2016
through
2022
2021
2020
2019
2018
2017
2013
Contractually required contribution
16,650
$
25,825
$
31,163
$
27,657
$
25,476
$
31,945
$
Information
City's contributions in relation to the
not available
contactually required contribution
(16,649)
(25,825)
(31,163)
(27,657)
(25,476)
(31,945)
City's contribution deficiency
(excess)
1
$
-
$
-
$
-
$
-
$
-
$
City's covered payroll
7,928,357
$
6,873,556
$
6,381,844
$
5,982,621
$
5,832,827
$
5,699,811
$
City's contributions as a percentage
of covered payroll
0.21%
0.38%
0.49%
0.46%
0.44%
0.56%
Reporting Fiscal Year
Reporting Fiscal Year
90
See accompanying notes to the pension/OPEB plan schedules.
ASRS - Long-term disability
2016
through
2022
2021
2020
2019
2018
2017
2013
Contractually required contribution
15,064
$
11,919
$
10,906
$
9,691
$
9,405
$
8,050
$
Information
City's contributions in relation to the
not available
contactually required contribution
(15,064)
(11,919)
(10,906)
(9,691)
(9,405)
(8,050)
City's contribution deficiency
(excess)
-
$
-
$
-
$
-
$
-
$
-
$
City's covered payroll
7,928,358
$
6,873,556
$
6,381,844
$
5,982,621
$
5,832,827
$
5,699,811
$
City's contributions as a percentage
of covered payroll
0.19%
0.17%
0.17%
0.16%
0.16%
0.14%
Reporting Fiscal Year
91
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION/OPEB CONTRIBUTIONS (Continued)
Year Ended June 30, 2022
PSPRS Police - Pension
2014
through
2022
2021
2020
2019
2018
2017
2016
2015
2013
Statutorily required contribution
1,017,828
$
1,144,242
$
1,326,972
$
1,183,042
$
1,365,177
$
798,249
$
809,325
$
593,877
$
Information
City's contributions in relation to the
not available
statutorily required contribution
(2,217,828)
(1,144,242)
(1,326,972)
(1,583,042)
(1,365,177)
(798,249)
(809,325)
(593,877)
City's contribution deficiency
(excess)
(1,200,000)
$
-
$
-
$
(400,000)
$
-
$
-
$
-
$
-
$
City's covered payroll
2,790,099
$
3,176,605
$
3,147,689
$
3,162,313
$
2,733,357
$
2,824,133
$
2,968,270
$
2,769,201
$
City's contributions as a percentage
of covered payroll
36.48%
36.02%
42.16%
50.06%
49.95%
28.27%
27.27%
21.45%
Reporting Fiscal Year
PSPRS Fire - Pension
2014
through
2022
2021
2020
2019
2018
2017
2016
2015
2013
Statutorily required contribution
548,204
$
422,602
$
380,514
$
400,812
$
668,971
$
330,799
$
281,360
$
225,909
$
Information
City's contributions in relation to the
not available
statutorily required contribution
(748,204)
(422,602)
(380,514)
(800,812)
(668,971)
(330,799)
(281,360)
(225,909)
City's contribution deficiency
(excess)
(200,000)
$
-
$
-
$
(400,000)
$
-
$
-
$
-
$
-
$
City's covered payroll
2,871,682
$
1,998,419
$
1,877,161
$
1,773,739
$
1,812,916
$
1,725,504
$
1,687,430
$
1,765,349
$
City's contributions as a percentage
of covered payroll
19.09%
21.15%
20.27%
45.15%
36.90%
19.17%
16.67%
12.80%
Reporting Fiscal Year
92
See accompanying notes to the pension/OPEB plan schedules.
PSPRS Police - Health Insurance
Premium Benefit
2016
through
2022
2021
2020
2019
2018
2017
2013
Statutorily required contribution
11,972
$
11,209
$
13,025
$
12,412
$
6,289
$
11,219
$
Information
City's contributions in relation to the
not available
statutorily required contribution
(11,972)
(11,209)
(13,025)
(12,412)
(6,289)
(11,219)
City's contribution deficiency
(excess)
-
$
-
$
-
$
-
$
-
$
-
$
City's covered payroll
3,420,571
$
3,176,605
$
3,147,689
$
3,162,313
$
2,733,357
$
2,824,133
$
City's contributions as a percentage
of covered payroll
0.35%
0.35%
0.41%
0.39%
0.23%
0.40%
PSPRS Fire - Health Insurance
Premium Benefit
2016
through
2022
2021
2020
2019
2018
2017
2013
Statutorily required contribution
4,101
$
4,027
$
2,827
$
3,492
$
4,208
$
5,693
$
Information
City's contributions in relation to the
not available
statutorily required contribution
(4,101)
(4,027)
(2,827)
(3,492)
(4,208)
(5,693)
City's contribution deficiency
(excess)
-
$
-
$
-
$
-
$
-
$
-
$
City's covered payroll
3,728,182
$
1,998,419
$
1,877,161
$
1,773,739
$
1,812,916
$
1,725,504
$
City's contributions as a percentage
of covered payroll
0.11%
0.20%
0.15%
0.20%
0.23%
0.33%
Reporting Fiscal Year
Reporting Fiscal Year
93
See accompanying notes to the pension/OPEB plan schedules.
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO THE PENSION/OPEB PLAN SCHEDULES
Year Ended June 30, 2022
NOTE 1:
ACTUARIALLY DETERMINED CONTRIBUTION RATES
Actuarial determined contribution rates for PSPRS are calculated as of June 30 two years prior
to the end of the fiscal year in which contributions are made. The actuarial methods and
assumptions used to establish the contribution requirements are as follows:
Actuarial cost method
Entry age normal
Amortization method
Level percent-of-pay, closed
Remaining amortization period as
19 years for underfunded
of the 2021 actuarial valuation
20 years for overfunded
Asset valuation method
7-year smoothed market value; 80%/120% market corridor
Actuarial assumptions:
Investment rate of return
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 was decreased from 7.85% to 7.5%. In
the 2013 actuarial valuation, the investment rate of return was
decreased from 8% to 7.85%.
Projected salary increases
In the 2017 actuarial valuation, projected salary increase were
decreased from 4.0%-8.0% to 3.5%-7.5% for PSPRS. In the 2014
actuarial valuation, projected salary increases were decreased from
4.5%-8.5% to 4.0%-8.0% for PSPRS. In the 2013 actuarial
valuation, projected salary increases were decreased from 5.0%-
9.0% to 4.5%-8.5% for PSPRS.
Wage growth
In the 2017 actuarial valuation, wage growth was decreased from
4% to 3.5% for PSPRS. In the 2014 actuarial valuation, wage
growth was decreased from 4.5% to 4.0% for PSPRS. In the 2013
actuarial valuation, wage growth was decreased from 5.0% to 4.5%
for PSPRS.
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)
95
CITY OF EL MIRAGE, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO THE PENSION/OPEB PLAN SCHEDULE
Year Ended June 30, 2022
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 2019 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.
96
Financial Section
OTHER SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
Streets Capital Project Fund
CITY OF EL MIRAGE, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –
BUDGET AND ACTUAL – STREETS (CAPITAL PROJECT FUND)
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Interest earnings
10,000
$
10,000
$
42,975
$
32,975
$
Other revenues
307,000
307,000
3,548,246
3,241,246
Total revenues
317,000
317,000
3,591,221
3,274,221
EXPENDITURES
Public works/streets
500,000
500,000
500,000
-
Capital outlay
14,048,500
1,021,000
197,597
823,403
Total expenditures
14,548,500
1,521,000
697,597
823,403
Excess (deficiency) of revenues
over (under) expenditures
(14,231,500)
(1,204,000)
2,893,624
4,097,624
Net change in fund balance
(14,231,500)
(1,204,000)
2,893,624
4,097,624
Fund balance - beginning of year
14,231,500
14,231,500
14,771,658
540,158
Fund balance - end of year
-
$
13,027,500
$
17,665,282
$
4,637,782
$
Budgeted Amounts
99
Financial Section
OTHER SUPPLEMENTARY INFORMATION
COMBINING STATEMENTS AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
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.
Municipal Court Enhancement Fund – This fund is used to account for the technology and
functional improvements of court operations.
Dial-A-Ride (LTAF) Fund - This fund is used to account for state funding for taxi voucher service
and street construction.
Police Towing Fund – This fund is used to account for charges for services to be used to
enhance police department operations.
Community Development Block Grant Fund – This fund is used to account for CDBG grant
activities.
Streets (HURF) Fund - This fund is used to account for state shared highway use tax revenues
for street improvements, maintenance, and capital additions.
Debt Service Funds
Debt Service - This 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, 2022
Municipal
Community
Court
Dial-A-Ride
Police
Development
Streets
Debt
ASSETS
Enhancement
(LTAF)
Towing
Block Grant
(HURF)
Service
Total
Cash and cash equivalents
981,563
$
217,491
$
112,955
$
-
$
1,997,212
$
510,671
$
3,819,892
$
Receivables, net:
Taxes
-
-
-
-
-
81,494
81,494
Intergovernmental
1,673
-
-
83,830
258,846
-
344,349
Other
-
90,370
-
-
-
-
90,370
Total assets
983,236
$
307,861
$
112,955
$
83,830
$
2,256,058
$
592,165
$
4,336,105
$
LIABILITIES
Accounts payable
11,912
$
-
$
7,412
$
68,766
$
700,886
$
-
$
788,976
$
Accrued wages and benefits
-
-
-
-
3,820
-
3,820
Customer deposits
2,711
-
-
-
-
-
2,711
Due to other funds
-
-
-
15,064
-
-
15,064
Total liablilties
14,623
-
7,412
83,830
704,706
-
810,571
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - taxes
-
-
-
-
-
39,892
39,892
Total deferred inflows of resources
-
-
-
-
-
39,892
39,892
FUND BALANCES
Restricted
Public safety
-
-
105,543
-
-
-
105,543
Public works/streets
-
307,861
-
-
1,551,352
-
1,859,213
Debt service
-
-
-
-
-
552,273
552,273
Court and police programs
968,613
-
-
-
-
-
968,613
Unassigned
-
-
-
-
-
-
-
Total fund balances
968,613
307,861
105,543
-
1,551,352
552,273
3,485,642
Total liabilities and fund balances
983,236
$
307,861
$
112,955
$
83,830
$
2,256,058
$
552,273
$
4,336,105
$
Special Revenue
103
CITY OF EL MIRAGE, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year Ended June 30, 2022
Municipal
Community
Court
Dial-A-Ride
Police
Development
Streets
Debt
REVENUES
Enhancement
(LTAF)
Towing
Block Grant
(HURF)
Service
Total
Taxes
-
$
-
$
-
$
-
$
-
$
2,041,569
$
2,041,569
$
Intergovernmental
-
90,370
-
459,373
2,646,491
-
3,196,234
Fines and forfeitures
48,638
-
23,850
-
-
-
72,488
Investment earnings
Interest earnings
1,689
360
333
-
5,086
3,417
10,885
Other revenues
-
-
-
-
20,595
-
20,595
Total revenues
50,327
90,730
24,183
459,373
2,672,172
2,044,986
5,341,771
EXPENDITURES
Current:
Public safety
92,968
-
147,322
-
-
-
240,290
Public works/streets
-
36,326
-
-
2,249,528
-
2,285,854
Capital outlay
53,390
-
-
459,373
773,479
-
1,286,242
Debt service:
Principal retirement
-
-
-
-
-
1,435,000
1,435,000
Interest and fiscal charges
-
-
-
-
-
654,574
654,574
Debt issuance cost
-
-
-
-
-
481,975
481,975
Total expenditures
146,358
36,326
147,322
459,373
3,023,007
2,571,549
6,383,935
Excess of revenues
over (under) expenditures
(96,031)
54,404
(123,139)
-
(350,835)
(526,563)
(1,042,164)
OTHER FINANCING SOURCES (USES)
Refunding bonds issued
-
-
-
-
-
11,575,000
11,575,000
Premium on refunding bonds issued
-
-
-
-
-
1,213,761
1,213,761
Payment to refunded bond escrow agent
-
-
-
-
-
(12,300,000)
(12,300,000)
Transfers in
-
-
-
-
-
100,000
100,000
Total other financing sources (uses)
-
-
-
-
-
588,761
588,761
Net change in fund balances
(96,031)
54,404
(123,139)
-
(350,835)
62,198
(453,403)
Fund balances - beginning of year
1,064,644
253,457
228,682
-
1,902,187
490,075
3,939,045
Fund balances - end of year
968,613
$
307,861
$
105,543
$
-
$
1,551,352
$
552,273
$
3,485,642
$
Special Revenue
104
CITY OF EL MIRAGE, ARIZONA
MUNICIPAL COURT ENHANCEMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Fines and forfeitures
70,000
$
70,000
$
48,638
$
(21,362)
$
Interest earnings
-
-
1,689
1,689
Total revenues
70,000
70,000
50,327
(19,673)
EXPENDITURES
Public safety
92,000
92,000
92,968
(968)
Capital outlay
550,000
550,000
53,390
496,610
Total expenditures
642,000
642,000
146,358
495,642
Excess (deficiency) of revenues
over (under) expenditures
(572,000)
(572,000)
(96,031)
475,969
Net change in fund balance
(572,000)
(572,000)
(96,031)
475,969
Fund balance - beginning of year
1,083,500
1,083,500
1,064,644
(18,856)
Fund balance - end of year
511,500
$
511,500
$
968,613
$
457,113
$
Budgeted Amounts
105
CITY OF EL MIRAGE, ARIZONA
DIAL- A-RIDE (LTAF)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Intergovernmental revenues
95,000
$
95,000
$
90,370
$
(4,630)
$
Interest earnings
-
-
360
360
Total revenues
95,000
95,000
90,730
(4,270)
EXPENDITURES
Public works/streets
188,000
188,000
36,326
151,674
Total expenditures
188,000
188,000
36,326
151,674
Excess (deficiency) of revenues
over (under) expenditures
(93,000)
(93,000)
54,404
147,404
Net change in fund balance
(93,000)
(93,000)
54,404
147,404
Fund balance - beginning of year
208,000
208,000
253,457
45,457
Fund balance - end of year
115,000
$
115,000
$
307,861
$
192,861
$
Budgeted Amounts
106
CITY OF EL MIRAGE, ARIZONA
POLICE TOWING
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Fines and forfeitures
40,000
$
40,000
$
23,850
$
(16,150)
$
Interest earnings
-
-
333
333
Total revenues
40,000
40,000
24,183
(15,817)
EXPENDITURES
Public safety
182,000
182,000
147,322
34,678
Total expenditures
182,000
182,000
147,322
34,678
Excess (deficiency) of revenues
over (under) expenditures
(142,000)
(142,000)
(123,139)
18,861
Net change in fund balance
(142,000)
(142,000)
(123,139)
18,861
Fund balance - beginning of year
226,000
226,000
228,682
2,682
Fund balance - end of year
84,000
$
84,000
$
105,543
$
21,543
$
Budgeted Amounts
107
CITY OF EL MIRAGE, ARIZONA
COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Intergovernmental revenues
-
$
-
$
459,373
$
459,373
$
Total revenues
-
-
459,373
459,373
EXPENDITURES
Capital outlay
888,000
1,177,500
459,373
718,127
Total expenditures
888,000
1,177,500
459,373
718,127
Net change in fund balance
(888,000)
(1,177,500)
-
1,177,500
Fund balance - beginning of year
888,000
888,000
-
(888,000)
Fund balance - end of year
-
$
(289,500)
$
-
$
289,500
$
Budgeted Amounts
108
CITY OF EL MIRAGE, ARIZONA
STREETS (HURF)
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Intergovernmental revenues
2,380,000
$
2,380,000
$
2,646,491
$
266,491
$
Interest earnings
-
-
5,086
5,086
Other revenues
-
-
20,595
20,595
Total revenues
2,380,000
2,380,000
2,672,172
292,172
EXPENDITURES
Public works/streets
1,446,000
1,446,000
2,249,528
(803,528)
Capital outlay
2,620,000
2,427,052
773,479
1,653,573
Total expenditures
4,066,000
3,873,052
3,023,007
850,045
Excess (deficiency) of revenues
over (under) expenditures
(1,686,000)
(1,493,052)
(350,835)
1,142,217
Net change in fund balance
(1,686,000)
(1,493,052)
(350,835)
1,142,217
Fund balance - beginning of year
1,763,500
1,763,500
1,902,187
138,687
Fund balance - end of year
77,500
$
270,448
$
1,551,352
$
1,280,904
$
Budgeted Amounts
109
CITY OF EL MIRAGE, ARIZONA
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
Year Ended June 30, 2022
Variance with
Final Budget-
Actual
Positive
REVENUES
Original
Final
Amounts
(Negative)
Taxes
2,030,000
$
2,030,000
$
2,041,569
$
11,569
$
Interest earnings
-
-
3,417
3,417
Total revenues
2,030,000
2,030,000
2,044,986
14,986
EXPENDITURES
Debt service:
Principal retirement
1,285,000
1,285,000
1,435,000
(150,000)
Interest and fiscal charges
890,000
890,000
654,574
235,426
Debt issuance cost
-
-
481,975
(481,975)
Total expenditures
2,175,000
2,175,000
2,571,549
(396,549)
Excess (deficiency) of revenues
over (under) expenditures
(145,000)
(145,000)
(526,563)
(381,563)
OTHER FINANCING
SOURCES (USES)
Refunding bonds issued
-
-
11,575,000
11,575,000
Premium on refunding bonds issued
-
-
1,213,761
1,213,761
Payment to refunded bond escrow agent
-
(13,000,000)
(12,300,000)
700,000
Transfers in
100,000
100,000
100,000
-
Total other financing sources
and (uses)
100,000
(12,900,000)
588,761
13,488,761
Net change in fund balance
(45,000)
(13,045,000)
62,198
13,107,198
Fund balance - beginning of year
464,000
464,000
490,075
26,075
Fund balance - end of year
419,000
$
(12,581,000)
$
552,273
$
13,133,273
$
Budgeted Amounts
110
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
113
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
127
These schedules contain information to help the reader assess the
government’s property taxes and the most significant local
revenues source.
Debt Capacity
133
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
137
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
139
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
CITY OF EL MIRAGE, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2022
2021
2020
2019
2018
Net Position:
Governmental activities
Net investment in capital assets
58,889,522
$
56,661,890
$
56,667,278
$
46,624,411
$
45,836,176
$
Restricted
26,133,927
23,898,377
16,923,724
12,133,608
8,409,993
Unrestricted
36,606,153
29,331,979
19,550,588
22,139,333
15,984,452
Total governmental activities net position
121,629,602
$
109,892,246
$
93,141,590
$
80,897,352
$
70,230,621
$
Business-type activities
Net investment in capital assets
23,374,495
$
20,979,792
$
29,392,545
$
29,457,397
$
27,884,333
$
Restricted
-
-
-
-
-
Unrestricted
35,697,522
37,917,603
28,911,120
25,538,037
23,325,153
Total business-type activities net position
59,072,017
$
58,897,395
$
58,303,665
$
54,995,434
$
51,209,486
$
Primary government
Net investment in capital assets
82,264,017
$
77,641,682
$
86,059,823
$
76,081,808
$
73,720,509
$
Restricted
26,133,927
23,898,377
16,923,724
12,133,608
8,409,993
Unrestricted
72,303,675
67,249,582
48,461,708
47,677,370
39,309,605
Total primary government net position
180,701,619
$
168,789,641
$
151,445,255
$
135,892,786
$
121,440,107
$
2017
2016
2015
2014
2013
Net Position:
Governmental activities
Net investment in capital assets
41,199,897
$
34,794,822
$
30,947,824
$
31,357,672
$
28,939,841
$
Restricted
9,603,813
15,546,294
8,155,286
9,768,498
15,870,123
Unrestricted
12,322,852
5,335,865
8,709,862
12,788,899
7,656,179
Total governmental activities net position
63,126,562
$
55,676,981
$
47,812,972
$
53,915,069
$
52,466,143
$
Business-type activities
Net investment in capital assets
27,309,076
$
24,888,693
$
24,691,276
$
25,975,719
$
29,473,825
$
Restricted
-
-
-
-
-
Unrestricted
20,063,673
19,137,165
15,330,216
11,634,797
5,487,935
Total business-type activities net position
47,372,749
$
44,025,858
$
40,021,492
$
37,610,516
$
34,961,760
$
Primary government
Net investment in capital assets
68,508,973
$
59,683,515
$
55,639,100
$
57,333,391
$
58,413,666
$
Restricted
9,603,813
15,546,294
8,155,286
9,768,498
15,870,123
Unrestricted
32,386,525
24,473,030
24,040,078
24,423,696
13,144,114
Total primary government net position
110,499,311
$
99,702,839
$
87,834,464
$
91,525,585
$
87,427,903
$
Fiscal Year Ended June 30
The source of this information is the City's financial records.
Source:
113
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES EXPENSE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2022
2021
2020
2019
2018
Governmental activities:
General government
12,617,262
$
9,025,363
$
8,185,259
$
7,193,712
$
6,994,848
$
Public safety
16,200,172
17,072,200
15,777,067
13,367,955
11,935,458
Highways and streets
4,567,594
4,279,942
4,465,392
4,464,599
3,372,194
Culture and recreation
-
-
443,385
1,265,719
1,255,915
Health and welfare
-
-
-
-
Interest on long-term debt
654,574
815,347
483,363
1,299,795
1,242,059
Total governmental activities expenses
34,039,602
31,192,852
29,354,466
27,591,780
24,800,474
Business-type activities:
Water
8,522,589
6,467,410
6,005,567
5,711,196
5,580,755
Sewer
2,846,119
2,604,974
2,684,309
2,482,493
2,415,160
Solid waste
1,583,580
1,619,256
1,075,446
1,086,988
1,135,506
Total business-type activities expenses
12,952,288
10,691,640
9,765,322
9,280,677
9,131,421
Total primary government expenses
46,991,890
$
41,884,492
$
39,119,788
$
36,872,457
$
33,931,895
$
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)
Expenses
Note:
Source:
Fiscal Year Ended June 30
114
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES EXPENSE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2017
2016
2015
2014
2013
Expenses
Governmental activities:
General government
7,056,222
$
5,793,877
$
5,563,291
$
6,066,519
$
5,740,420
$
Public safety
13,162,982
11,167,283
11,638,718
11,083,112
10,474,809
Highways and streets
3,492,003
3,367,393
2,998,087
3,391,878
2,224,551
Culture and recreation
1,231,510
1,739,508
1,739,595
1,594,482
1,463,716
Health and welfare
-
395,627
395,627
395,851
396,127
Interest on long-term debt
1,630,076
1,428,706
1,080,786
1,111,716
1,118,359
Total governmental activities expenses
26,572,793
23,892,394
23,416,104
23,643,558
21,417,982
Business-type activities:
Water
5,801,324
5,470,323
5,687,906
9,234,221
5,369,790
Sewer
2,434,685
2,364,833
2,250,655
2,242,448
2,305,425
Solid waste
1,090,678
1,076,709
1,054,154
1,036,762
945,224
Total business-type activities expenses
9,326,687
8,911,865
8,992,715
12,513,431
8,620,439
Total primary government expenses
35,899,480
$
32,804,259
$
32,408,819
$
36,156,989
$
30,038,421
$
(Concluded)
Fiscal Year Ended June 30
Notes: (1) In fiscal year 2013 the City separated the Water and Sewer funds from a combined reporting fund into individual
reporting funds.
The source of this information is the City's financial records.
Source:
115
CITY OF EL MIRAGE, ARIZONA
PROGRAM REVENUES AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2022
2021
2020
2019
2018
Program Revenues
Governmental activities:
Charges for services:
General government
2,725,756
$
2,426,077
$
2,183,952
$
2,372,111
$
1,610,087
$
Public safety
579,329
778,946
976,983
966,452
805,240
Highways and streets
3,548,246
821,676
2,070,878
-
-
Culture and recreation
-
-
57,486
71,474
72,206
Operating grants and contributions
3,759,331
10,654,161
5,939,482
3,314,161
2,941,043
Capital grants and contributions
471,130
432,025
15,530
5,137,683
1,951,817
Total governmental activities program revenues
11,083,792
15,112,885
11,244,311
11,861,881
7,380,393
Business-type activities:
Charges for services:
Water
10,375,917
$
9,473,740
$
9,055,461
$
9,245,531
$
9,656,519
$
Sewer
3,479,855
3,304,323
3,264,492
3,298,488
3,243,532
Sanitation
2,247,977
1,636,203
1,626,216
1,601,564
1,601,087
Capital grants and contributions
-
15,000
-
887,861
374,732
Total business-type activities program revenues
16,103,749
14,429,266
13,946,169
15,033,444
14,875,870
Total primary government revenues
27,187,541
$
29,542,151
$
25,190,480
$
26,895,325
$
22,256,263
$
Net (Expense)/Revenue
Governmental activities
(22,955,810)
$
(16,079,967)
$
(18,110,155)
$
(15,729,899)
$
(17,420,081)
$
Business-type activities
3,151,641
3,737,626
6,889,847
5,752,767
5,744,449
Total primary government net (expense)/revenues
(19,804,169)
$
(12,342,341)
$
(11,220,308)
$
(9,977,132)
$
(11,675,632)
$
(Continued)
Fiscal Year Ended June 30
116
CITY OF EL MIRAGE, ARIZONA
PROGRAM REVENUES AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2017
2016
2015
2014
2013
Program Revenues
Governmental activities:
Charges for services:
General government
1,268,421
$
2,706,401
$
2,574,115
$
3,050,487
$
3,670,957
$
Public safety
658,215
858,161
884,433
759,473
634,969
Highways and streets
-
-
-
2,500
10,299
Culture and recreation
52,160
91,431
75,609
72,953
74,194
Operating grants and contributions
2,710,165
2,725,912
2,440,443
2,355,917
1,722,354
Capital grants and contributions
6,747,130
4,350,917
2,482,244
1,787,244
1,328,998
Total governmental activities program revenues
11,436,091
10,732,822
8,456,844
8,028,574
7,441,771
Business-type activities:
Charges for services:
Water
9,529,705
$
9,544,865
$
9,424,373
$
8,777,834
$
8,003,552
$
Sewer
3,361,689
3,164,369
3,198,445
3,127,298
3,203,962
Water and sewer
-
1,598,383
1,582,522
-
-
Sanitation
1,608,769
-
-
1,558,263
1,409,148
Capital grants and contributions
-
-
-
-
-
Total business-type activities program revenues
14,500,163
14,307,617
14,205,340
13,463,395
12,616,662
Total primary government revenues
25,936,254
$
25,040,439
$
22,662,184
$
21,491,969
$
20,058,433
$
Net (Expense)/Revenue
Governmental activities
(15,136,702)
$
(13,159,572)
$
(14,959,260)
$
(15,614,984)
$
(13,976,211)
$
Business-type activities
5,173,476
5,395,752
5,212,625
1,471,834
3,996,223
Total primary government net (expense)/revenues
(9,963,226)
$
(7,763,820)
$
(9,746,635)
$
(14,143,150)
$
(9,979,988)
$
Source: The source of this information is the City's financial records.
(Concluded)
Fiscal Year Ended June 30
117
CITY OF EL MIRAGE, ARIZONA
GENERAL REVENUES, TRANSFERS, AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2022
2021
2020
2019
2018
General Revenues:
Governmental activities:
Taxes:
Property taxes
4,685,551
$
4,308,183
$
4,169,021
$
4,295,776
$
3,678,093
$
City sales taxes
14,760,486
13,385,017
11,673,068
8,538,740
8,020,802
Franchise taxes
761,830
772,317
696,912
742,741
774,856
Unrestricted state shared revenues
11,437,358
11,046,696
9,811,695
9,353,989
9,157,332
Investment income
70,999
798,697
1,433,459
733,215
Interest Earnings
209,431
Change in Fair Value of Investments
(600,884)
Development impact fees
-
-
-
-
-
Miscellaneous
394,745
42,411
-
309,537
291,357
Transfers
3,044,649
3,205,000
3,205,000
2,010,500
1,933,000
Total governmental activities
34,693,166
$
32,830,623
$
30,354,393
$
26,684,742
$
24,588,655
$
Business-type activities:
Investment income
64,784
$
30,354
$
305,058
$
43,681
$
24,865
$
Development impact fees
-
-
-
-
-
Miscellaneous
3,026
30,750
-
-
-
Transfers
(3,044,649)
(3,205,000)
(3,205,000)
(2,010,500)
(1,933,000)
Total business-type activities
(2,976,839)
$
(3,143,896)
$
(2,899,942)
$
(1,966,819)
$
(1,908,135)
$
Changes in Net Position
Governmental activities
11,737,356
$
16,750,656
$
12,244,238
$
10,666,731
$
7,168,574
$
Business-type activities
174,622
593,730
3,989,905
3,785,948
3,836,314
Total primary government
11,911,978
$
17,344,386
$
16,234,143
$
14,452,679
$
11,004,888
$
(Continued)
Fiscal Year Ended June 30
118
CITY OF EL MIRAGE, ARIZONA
GENERAL REVENUES, TRANSFERS, AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
2017
2016
2015
2014
2013
General Revenues:
Governmental activities:
Taxes:
Property taxes
3,683,700
$
3,663,163
$
3,505,551
$
3,587,541
$
3,738,856
$
City sales taxes
7,445,186
6,990,668
6,685,666
6,480,147
6,051,967
Franchise taxes
712,143
745,088
692,154
688,216
687,341
Unrestricted state shared revenues
8,604,293
8,086,986
7,970,499
7,447,112
6,914,460
Investment income
297,461
107,055
50,727
30,894
41,983
Development impact fees
-
Miscellaneous
Transfers
1,843,500
1,430,621
2,000,000
(1,170,000)
1,697,909
Total governmental activities
22,586,283
$
21,023,581
$
20,904,597
$
17,063,910
$
19,132,516
$
Business-type activities:
Investment income
16,915
$
39,235
$
5,764
$
6,922
$
6,397
$
Development impact fees
-
Miscellaneous
-
Transfers
(1,843,500)
(1,430,621)
(2,000,000)
1,170,000
(1,697,909)
Total business-type activities
(1,826,585)
$
(1,391,386)
$
(1,994,236)
$
1,176,922
$
(1,691,512)
$
Changes in Net Position
Governmental activities
7,449,581
$
7,864,009
$
5,945,337
$
1,448,926
$
5,156,305
$
Business-type activities
3,346,891
4,004,366
3,218,389
2,648,756
2,304,711
Total primary government
10,796,472
$
11,868,375
$
9,163,726
$
4,097,682
$
7,461,016
$
(Concluded)
Source: The source of this information is the City's financial records.
Fiscal Year Ended June 30
119
CITY OF EL MIRAGE, ARIZONA
FUND BALANCES – GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2022
2021
2020
2019
2018
General Fund:
Nonspendable
28,122
$
7,345
$
89,069
$
94,526
$
100,435
$
Restricted
-
-
-
-
-
Committed
-
838,502
720,886
534,313
456,968
Assigned
-
404,336
426,359
321,145
338,795
Unassigned
49,602,488
42,081,082
30,928,860
32,566,934
27,711,606
Total General Fund
49,630,610
$
43,331,265
$
32,165,174
$
33,516,918
$
28,607,804
$
All Other Governmental Funds:
Nonspendable
-
$
6,165
$
-
$
-
$
-
$
Restricted
26,133,927
23,892,212
16,923,724
12,133,608
8,409,993
Committed
-
1,064,644
1,103,629
1,536,016
1,742,741
Assigned
-
-
-
-
-
Unassigned
-
-
-
-
-
Total all other governmental funds
26,133,927
$
24,963,021
$
18,027,353
$
13,669,624
$
10,152,734
$
(Continued)
Fiscal Year Ended June 30
120
CITY OF EL MIRAGE, ARIZONA
FUND BALANCES – GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2017
2016
2015
2014
2013
General Fund:
Nonspendable
34,042
$
2,002
$
3,731
$
2,665
$
2,585
$
Restricted
-
2,138,430
-
158,508
-
Committed
1,048,009
388,197
322,037
151,041
80,500
Assigned
201,680
316,212
209,007
270,978
-
Unassigned
22,985,787
22,848,735
18,961,922
14,032,607
16,754,043
Total General Fund
24,269,518
$
25,693,576
$
19,496,697
$
14,615,799
$
16,837,128
$
All Other Governmental Funds:
Nonspendable
5,102
$
5,102
$
400
$
-
$
-
$
Restricted
9,598,711
13,356,982
8,118,790
9,567,702
15,824,795
Committed
2,291,094
2,870,981
3,150,260
3,688,958
3,346,167
Assigned
-
-
-
26,868
-
Unassigned
-
-
-
-
-
Total all other governmental funds
11,894,907
$
16,233,065
$
11,269,450
$
13,283,528
$
19,170,962
$
Source:
Note:
(Concluded)
The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011.
The standard replaces the previous reserved and unreserved fund balance categories with the following five fund balance
classifications: nonspendable, restricted, committed, assigned, and unassigned fund balance.
The source of this information is the City's financial records.
Fiscal Year Ended June 30
121
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2022
2021
2020
2019
2018
Revenues:
Property taxes
4,663,575
$
4,327,680
$
4,192,488
$
4,295,776
$
3,683,118
$
City sales taxes
14,760,486
13,385,017
11,673,068
8,538,740
8,020,802
Franchise taxes
761,830
772,317
696,912
742,741
774,856
Licenses, permits and fees
1,050,534
708,361
837,063
449,482
295,737
Intergovernmental
15,478,473
22,093,459
15,763,318
17,801,633
14,027,647
Charges for services
1,608,199
1,649,176
1,318,619
1,213,951
620,855
Fines and forfeits
338,353
660,157
864,969
1,417,360
1,376,994
Investment income:
70,999
798,697
1,433,459
733,215
Interest Earnings
209,431
-
-
-
-
Change in Fair Value of Investments
(600,884)
-
-
-
-
Miscellaneous
4,433,549
1,048,428
2,272,037
309,537
221,632
Total revenues
42,703,546
$
44,715,594
$
38,417,171
$
36,202,679
$
29,754,856
$
Fiscal Year Ended June 30
2017
2016
2015
2014
2013
Revenues:
Property taxes
3,692,071
$
3,647,913
$
3,516,609
$
3,596,707
$
3,756,880
$
City sales taxes
7,445,186
6,990,668
6,685,666
6,480,147
6,051,967
Franchise taxes
712,143
745,088
692,154
688,216
687,341
Licenses, permits and fees
269,103
243,974
344,937
333,821
369,465
Intergovernmental
18,072,336
14,735,815
12,893,186
10,862,941
10,012,341
Charges for services
272,747
371,669
441,040
300,296
224,086
Fines and forfeits
1,220,377
2,769,074
2,525,323
3,078,326
3,641,326
Investment income
297,461
107,055
50,727
30,894
41,983
Rents
-
71,753
67,487
61,854
49,029
Development impact fees
-
-
-
-
-
Contributions and donations
-
41,151
47,848
6,524
4,800
Miscellaneous
221,746
158,372
107,522
97,624
141,804
Total revenues
32,203,170
$
29,882,532
$
27,372,499
$
25,537,350
$
24,981,022
$
Source: The source of this information is the City's financial records.
122
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2022
2021
2020
2019
2018
Expenditures:
Current
General government
11,158,097
$
7,646,041
$
7,399,877
$
6,617,738
$
6,327,081
$
Public safety*
17,715,138
15,251,802
14,395,837
13,684,610
10,912,583
Highways and streets
2,929,774
2,631,223
2,704,575
2,855,137
2,481,258
Culture and recreation**
-
-
-
854,348
840,136
Capital outlay
5,246,498
2,232,142
2,353,516
3,044,751
5,573,151
Debt service
Principal retirement
1,435,000
1,230,000
10,425,000
1,785,000
1,880,000
Interest and fiscal charges
654,574
870,038
1,368,688
1,431,632
1,373,346
Bond issuance costs
481,975
-
-
-
186,700
Total expenditures
39,189,339
$
29,861,246
$
38,647,493
$
30,273,216
$
29,574,255
$
Expenditures for capitalized assets
4,814,781
$
2,232,142
$
2,353,516
$
3,044,751
$
5,581,120
$
Debt service as a percentage of
noncapital expenditures
6%
8%
32%
12%
14%
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)
Fiscal Year Ended June 30
124
CITY OF EL MIRAGE, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2017
2016
2015
2014
2013
Expenditures:
Current
General government
6,493,561
$
5,427,402
$
5,285,104
$
5,243,949
$
5,461,931
$
Public safety
10,757,510
10,785,548
10,713,942
10,364,107
10,050,592
Highways and streets
2,562,531
2,450,730
2,057,440
2,510,736
1,121,260
Culture and recreation
794,042
1,314,039
1,315,472
1,283,670
1,158,665
Capital outlay
16,507,748
11,578,785
5,018,031
10,979,663
5,600,612
Debt service
Principal retirement
1,075,000
1,038,074
1,007,829
971,329
932,252
Interest and fiscal charges
1,618,494
1,531,293
1,107,861
1,138,791
1,117,939
Bond issuance costs
-
203,349
-
-
380,705
Total expenditures
39,808,886
$
34,329,220
$
26,505,679
$
32,492,245
$
25,823,956
$
Expenditures for capitalized assets
16,507,750
$
11,636,254
$
5,007,725
$
10,969,912
$
4,943,382
$
Debt service as a percentage of
noncapital expenditures
12%
11%
10%
10%
12%
Source:
(Concluded)
The source of this information is the City's financial records.
Fiscal Year Ended June 30
125
CITY OF EL MIRAGE, ARIZONA
OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
2022
2021
2020
2019
2018
Excess (deficiency) of
revenues over expenditures
3,082,490
$
14,854,348
$
(230,322)
$
5,929,463
$
180,601
$
Other financing sources (uses):
Issuance of bonds
11,575,000
-
-
-
8,385,000
Premium on sale of bonds
1,213,761
-
-
-
881,581
Payment to refunded bond escrow agent
(12,300,000)
-
-
-
(9,073,030)
Sale of assets
-
42,411
31,307
486,041
288,961
Capital lease agreements
-
-
-
-
-
Transfers in
4,606,004
(2,328,410)
14,939,142
4,501,500
5,252,508
Transfers out
(707,004)
5,533,410
(11,734,142)
(2,491,000)
(3,319,508)
Total other financing sources (uses)
4,387,761
3,247,411
3,236,307
2,496,541
2,415,512
Changes in fund balances
7,470,251
$
18,101,759
$
3,005,985
$
8,426,004
$
2,596,113
$
2017
2016
2015
2014
2013
Excess (deficiency) of
revenues over expenditures
(7,605,716)
$
(4,446,688)
$
866,820
$
(6,954,895)
$
(842,934)
$
Other financing sources (uses):
Issuance of bonds
-
12,470,000
-
-
18,205,000
Premium on sale of bonds
-
1,132,682
-
-
864,326
Payment to refunded bond escrow agent
-
-
-
-
(3,363,986)
Sale of assets
-
-
-
-
-
Capital lease agreements
-
-
-
16,132
-
Transfers in
4,299,991
4,558,633
4,628,554
8,224,707
2,936,500
Transfers out
(2,456,491)
(2,554,133)
(2,628,554)
(9,394,707)
(873,000)
Total other financing sources (uses)
1,843,500
15,607,182
2,000,000
(1,153,868)
17,768,840
Changes in fund balances
(5,762,216)
$
11,160,494
$
2,866,820
$
(8,108,763)
$
16,925,906
$
Source: The source of this information is the City's financial records.
Fiscal Year Ended June 30
126
CITY OF EL MIRAGE, ARIZONA
TAXABLE SALES BY CATEGORY (IN THOUSANDS)
LAST TEN FISCAL YEARS
2022
2021
2020
2019
2018
Construction
44,158
$
68,871
$
80,739
$
18,784
$
18,943
$
Retail trade
266,401
225,717
170,923
137,447
132,306
Communications and utilities
43,301
42,147
39,229
42,878
43,217
Restaurant and bar
14,961
14,174
12,688
12,737
12,123
Real estate, rental and leasing
66,992
78,045
69,412
61,180
51,557
Accomodation
557
428
373
-
-
Services
1,219
1,943
1,403
-
-
Other
14,672
14,558
13,586
10,696
9,114
Total
452,262
$
445,882
$
388,352
$
283,722
$
267,260
$
2017
2016
2015
2014
2013
Construction
17,019
$
12,542
$
8,230
$
11,796
$
7,032
$
Retail trade
125,205
102,235
102,763
94,340
92,183
Communications and utilities
41,498
44,906
45,844
43,625
43,531
Restaurant and bar
11,203
9,969
8,764
7,764
8,298
Real estate, rental and leasing
44,223
32,453
34,943
35,334
31,411
Accomodation
-
3,256
3,602
3,655
3,205
Services
-
4,693
3,878
4,432
4,753
Other
6,923
16,980
12,104
12,078
9,250
Total
246,070
$
227,034
$
220,129
$
213,024
$
199,662
$
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.
Fiscal Year
Fiscal Year
127
CITY OF EL MIRAGE, ARIZONA
TRANSACTION PRIVILEGE (SALES) TAX COLLECTIONS BY INDUSTRY
FISCAL YEARS 2022 AND 2013
Fiscal Year 2022
Fiscal Year 2013
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
69
2%
1,324,745
$
10%
821
14%
210,964
$
3%
Retail trade
2,785
61%
7,992,019
59%
691
11%
2,765,499
46%
Communications and utilities
87
2%
1,299,044
10%
99
2%
1,305,915
22%
Restaurant and bar
51
1%
448,831
3%
28
0%
248,927
4%
Real estate, rental and leasing
862
19%
2,009,763
15%
732
12%
942,324
16%
Accomodation
6
0%
27,857
0%
3
0%
160,274
3%
Services
8
0%
36,583
3%
303
5%
142,586
2%
Other
695
15%
440,173
3%
3,355
56%
277,488
5%
Total
4,563
100%
13,579,013
$
100%
6,032
100%
6,053,977
$
100%
Tax Collections from top ten taxpayers
10
<1%
4,293,608
32%
10
<1%
3,260,168
54%
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.
The actual revenues for FY 2022 include an additional period, this display is based on the collections for twelve months, July 2021 to June 2022.
128
CITY OF EL MIRAGE, ARIZONA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal
Year
General
Total
Central AZ
Dysart #89
Ended
Basic
Obligation
Direct
Community
Conserv.
Health
Unified
West-
Total
June 30
Rate
Debt Service
Rates
General
College Dist.
District
District
El Mirage
Mec*
Rates
2022
1.90
1.48
3.39
1.35
1.23
0.14
0.29
20.40
0.16
26.96
2021
1.98
1.70
3.68
21.20
24.88
2020
1.98
1.76
3.74
21.74
25.48
2019
2.06
1.90
3.96
22.51
26.47
2018
1.63
2.00
3.63
21.95
25.58
2017
1.70
2.08
3.78
22.42
26.20
2016
1.73
2.12
3.85
22.04
25.89
2015
1.74
1.80
3.54
22.09
25.63
2014
1.86
2.18
4.04
23.25
27.29
2013
1.86
2.03
3.89
22.44
26.33
Source:
The source of this information is the Maricopa County Department of Finance Annual Tax Rate Report.
* Prior year's data will be completed for the overlapping districts that were previously omitted going forward.
Maricopa County*
Overlapping Rates
City of El Mirage
School Districts
Direct Rates
129
CITY OF EL MIRAGE, ARIZONA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Primary
Primary Taxes
Fiscal Year
Taxes Levied
Collected in
Ended
for the
Subsequent
June 30
Fiscal Year
Amount
Fiscal Years (2)
Amount
2022
2,611,504
$
2,582,742
$
98.90 %
2,582,742
$
98.90 %
2021
2,405,564
2,352,036
97.77
41,591
$
2,352,036
97.77
2020
2,226,252
2,169,120
97.43
41,921
2,211,041
99.32
2019
2,257,335
2,185,480
96.82
9,307
2,194,787
97.23
2018
1,656,452
1,624,691
98.08
20,921
1,645,612
99.35
2017
1,659,775
1,611,809
97.11
31,837
1,643,646
99.03
2016
1,661,854
1,614,373
97.14
22,787
1,637,160
98.51
2015
1,621,765
1,570,135
96.82
30,317
1,600,452
98.69
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
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
Collected to the End
Primary Taxes
Primary Taxes
130
CITY OF EL MIRAGE, ARIZONA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Assessed Value
Assessed Value
Less:
Total Taxable
Estimated
Ended
Residential
Commercial
Tax Exempt
Assessed
Total Direct
Actual
June 30
Property
Property
Real Property
Valuation
Tax Rate
Taxable Value
2022
182,330,739
$
86,284,837
$
29,300,568
$
239,315,008
$
3.3906
2,347,608,437
$
10.19 %
2021
160,304,204
68,767,721
26,201,746
202,870,179
3.6834
2,025,278,943
10.02
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
Source:
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
131
CITY OF EL MIRAGE, ARIZONA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
Net Assessed
Full Cash
Value
Rank
Net Assessed
Full Cash
Value
Rank
MICROSOFT CORPORATION
10,823,050
$
1
5.33%
ARIZONA PUBLIC SERVICE COMPANY
3,826,733
$
1
3.92%
ARIZONA PUBLIC SERVICE COMPANY
4,988,924
2
2.46%
ROBERTS PROPERTIES LTD
2,797,409
2
2.86%
PUEBLO EL MIRAGE LLC
3,780,354
3
1.86%
WAL MART STORES INC
2,456,630
3
2.51%
PIPE PORTFOLIO OWNER (MULTI) LP
3,243,116
4
1.60%
HANSON PIPE & PRODUCTS INC
1,962,570
4
2.01%
WAL MART STORES INC
3,071,566
5
1.51%
QWEST CORPORATION
1,753,160
5
1.79%
BNSF RAILWAY COMPANY
2,301,443
6
1.13%
BNSF RAILWAY COMPANY
1,604,503
6
1.64%
CLAYTON HOMES INC
2,192,678
7
1.08%
CLAYTON HOMES INC
1,044,557
7
1.07%
COYOTE PASS RV AND MINI STORAGE LLC
1,655,170
8
0.82%
ARIZONA SAND & ROCK CO
740,027
8
0.76%
EL MIRAGE RV & BOAT STORAGE
1,544,751
9
0.76%
SW EL MIRAGE LP
717,988
9
0.73%
CIVES CORPORATION
1,488,813
10
0.73%
PREMIERE RV & MINI STORAGE LLC
647,910
10
0.66%
ARIZONA SAND & ROCK CO
1,195,173
11
0.59%
AAW: SUN CITY WATER DIVISION
590,030
11
0.60%
2018-1 1H BORROWER LP
972,320
12
0.48%
SUMERLIN LLC
562,663
12
0.58%
UNION ROCK & MATERIAL CORP
906,833
13
0.45%
JIA CORP
509,783
13
0.52%
JIA CORP
845,175
14
0.42%
T BAR C LAND AND CAMEL COMPANY LLC
506,729
14
0.52%
SOUTHWEST GAS CORPORATION (T&D)
818,799
15
0.40%
JDL & COMPANY L L C
480,265
15
0.49%
TX-CALI HOLDINGS LLC
815,728
16
0.40%
AAW: SUN CITY SEWER DIVISION
454,413
16
0.47%
EPCOR (SUN CITY SEWER)
791,878
17
0.39%
COYOTE PASS RV AND MINI STORAGE LLC
421,555
17
0.43%
EPCOR (SUN CITY WATER DIVISION)
780,907
18
0.38%
UNION ROCK & MATERIAL CORP
417,132
18
0.43%
PREMIERE RV & MINI STORAGE LLC
765,241
19
0.38%
EL MIRAGE PARTNERS LLC
409,748
19
0.42%
THE ORCHARDS AT EL MIRAGE LLC
669,848
20
0.33%
EL MIRAGE MARKET PLACE LLC
406,377
20
0.42%
REALTY INCOME PROPERTIES 25 LLC
649,566
21
0.32%
MCS ENTERPRISES LLC
400,700
21
0.41%
K & L DIRT COMPANY LC
649,565
22
0.32%
MAX TAYLOR AND COMPANY LLC
393,786
22
0.40%
REM PLAZA LLC
644,404
23
0.32%
SOUTHWEST GAS CORPORATION (T&D)
386,245
23
0.40%
T BAR C LAND AND CAMEL COMPANY LLC
619,886
24
0.31%
KETCHUM REAL ESTATE INVESTMENTS
385,135
24
0.39%
CPI EL MIRAGE OWNER LLC
606,890
25
0.30%
YES COMPANIES LLC
370,099
25
0.38%
Source: The source of this information is the Maricopa County Assessor's Office- Data Request Report.
Percentage of
Net Assessed
Full Cash
Value
2013
Taxpayer
2022
Taxpayer
Percentage of
Net Assessed
Full Cash Value
132
CITY OF EL MIRAGE, ARIZONA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
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
2022
$
19,789,760
-
$
-
$
-
$
-
$
-
$
14,248,902
$
34,038,662
$
N/A
943
2021
21,130,822
-
-
-
-
-
17,198,541
38,329,363
N/A
1,066
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
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)
133
CITY OF EL MIRAGE, ARIZONA
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
2022
19,789,760
$
552,273
$
19,237,487
$
0.819 %
533
2021
21,130,822
490,075
20,640,747
1.019
574
2020
22,475,911
479,261
21,996,650
1.227
615
2019
23,780,971
493,370
23,287,601
1.426
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
Source:
The source of this information is the City's financial records.
Note:
N/A indicates that the information is not available.
Per Capita
134
CITY OF EL MIRAGE, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2022
Estimated
Estimated
Percentage
Amount
Debt
Applicable
Applicable
Outstanding
to City
to City
Debt repaid with property taxes:
MCC
154,196,303
$
0.3581%
552,205
$
MC Community College
250,065,000
0.3581%
895,528
Central Az. Water Conserv. Dist.
52,635,000
0.3581%
188,495
Health District
657,695,000
0.3581%
2,355,324
West-Mec
144,220,000
0.9795%
1,412,615
Dysart Unified School District No. 89
116,190,199
10.657% %
12,381,942
Subtotal, Overlapping Debt
17,786,109
$
Direct:
City of El Mirage
19,789,760
Total Direct and Overlapping Debt
37,575,869
$
Source:
Note:
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.
Estimated percentage of debt outstanding applicable to the City is calculated based on the City's full cash assessed valuation as a
percentage of the full cash assessed valuation of the overlapping jurisdiction.
Governmental Unit
135
CITY OF EL MIRAGE, ARIZONA
LEGAL DEBT MARGIN INFORMATION UNRESTRICTED AND RESTRICTED
JUNE 30, 2022
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Debt limit 6%
16,497,912
$
15,000,211
$
12,683,453
$
11,375,002
$
10,117,323
$
8,932,155
$
8,049,641
$
6,540,468
$
6,540,468
$
5,762,741
$
Total net debt applicable to limit
170,000
1,300,000
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
16,327,912
$
13,700,211
$
11,308,953
$
9,540,002
$
8,217,323
$
3,913,555
$
1,956,041
$
2,442,563
$
777,727
$
-
$
Total net debt applicable to the
6% limit as a percentage
of 6% debt limit
1.03%
8.67%
10.84%
16.13%
18.78%
56.19%
75.70%
62.65%
88.11%
100.00%
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Debt limit 20%
54,993,040
$
50,000,702
$
42,278,177
$
37,916,673
$
33,724,408
$
29,773,849
$
26,832,138
$
21,801,560
$
21,804,560
$
19,209,136
$
Total net debt applicable to limit
17,690,000
19,830,822
21,101,411
22,605,000
21,695,000
19,986,400
19,986,400
21,801,560
21,180,381
22,236,272
Restricted legal debt margin
37,303,040
$
30,169,880
$
21,176,766
$
15,311,673
$
12,029,408
$
9,787,449
$
6,845,738
$
-
$
624,179
$
(3,027,136)
$
Total net debt applicable to
the 20% limit as a
percentage of 20% debt limit
32.17%
39.66%
49.91%
59.62%
64.33%
67.13%
74.49%
100.00%
97.14%
115.76%
Note: Outstanding debt includes bond premium
Source: Arizona Department of Revenue and Arizona State Treasurer - Bonded Indebtedness and Debt Limitations.
Unrestricted
Restricted
136
CITY OF EL MIRAGE, ARIZONA
COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
City of
Personal
El Mirage
Income
Per Capita
Year
Population
Population
(thousands)
Income
2022
36,101
N/A
$
N/A
$
N/A
5.6
%
2021
35,957
N/A
N/A
N/A
6.6
2020
35,753
4,485,414
222,943,072
49,704
9.8
2019
35,670
4,402,403
211,812,685
48,113
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
Source: The source of this information is the U.S. Census Bureau,
U.S. Department of Commerce and Arizona Office of Economic Opportunity.
Note: All personal income figures and per capita income are for Maricopa County.
N/A indicates that the information is not available.
Rate
Unemployment
Maricopa County
137
CITY OF EL MIRAGE, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
Percentage
Percentage
of Total
of Total
Employees
Employment
Employees
Employment
Dysart Unified School District 89
510
13.01
%
575
21.28
%
Walmart
350
8.93
308
11.40
City of El Mirage
180
4.59
170
6.29
Dvc Construction Company Inc
160
4.08
CalPortland Company
150
3.83
Parks Sons of Sun City Inc
140
3.57
125
4.63
BNSF Railway Co
120
3.06
100
3.70
Yellowstone Landscape
110
2.81
Southwest Steel Inc
100
2.55
67
2.48
Legacy Vulcan Corp
100
2.55
Top Line Construction Inc
90
3.33
Look Trailers
70
2.59
Sutter Masonry
80
2.96
Bashas (Food City)
65
2.41
Total
1,920
48.98
%
1,650
61.07
%
Total employment
3,920
2,702
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.
Employer
2022
2013
138
CITY OF EL MIRAGE, ARIZONA
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
General Government
39.40
38.20
34.10
29.10
30.10
30.10
31.20
31.20
29.30
23.50
Public Safety
Police
72.50
69.50
72.00
68.50
59.50
59.00
61.20
60.20
58.50
56.00
Fire
31.00
31.00
31.00
34.00
27.00
27.00
29.00
29.00
29.00
28.00
Court
10.00
10.00
10.10
11.10
9.60
8.60
13.10
13.10
12.20
13.10
Public Works
4.00
Streets
4.00
4.00
4.00
4.00
4.00
4.00
6.00
6.00
6.00
6.00
Development Services
10.30
10.30
10.30
6.00
3.00
4.00
4.00
4.00
3.00
3.00
Economic Development
1.00
1.00
1.00
1.00
1.00
Parks and Recreation
7.80
7.80
7.80
7.80
7.80
7.80
4.80
4.80
4.80
4.80
Health and Welfare
Water
13.00
13.00
13.00
18.00
18.00
18.00
16.70
16.70
18.00
18.00
Sewer
7.00
7.00
7.00
8.00
8.00
8.00
8.00
8.00
9.00
10.00
Customer Service
6.00
6.00
6.00
6.00
5.30
5.30
5.40
4.50
4.50
4.50
202.00
197.80
196.30
193.50
179.40
177.50
174.30
170.90
165.35
176.85
Source:
The source of this information is the City of El Mirage Annual Budget
Full-time Equivalent Employees as of June 30
139
CITY OF EL MIRAGE, ARIZONA
CAPITAL ASSETS INFORMATION
LAST TEN FISCAL YEARS
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Function/Program
Police
Stations
1
1
1
1
1
1
1
1
1
1
Patrol units (1)
28
28
44
44
42
42
43
43
43
43
Fire
Fire stations
1
1
1
1
1
1
1
1
1
1
Fire engines and ladder trucks
3
3
3
2
3
4
3
3
3
3
Other Public Works
Street miles
248
248
248
248
248
242
240
240
240
240
Traffic signals
17
17
17
17
17
13
11
11
11
10
Community Development
Inspection vehicles
8
8
5
10
10
10
8
8
8
8
Culture and recreation
Parks acreage
52
52
52
52
52.3
52.3
52.3
52.3
52.3
44.8
Parks
13
13
13
13
13
13
13
13
13
12
Softball fields
2
2
2
2
2
2
2
2
2
2
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)(2)
11.25
11.25
11.25
11.80
11.58
11.58
11.58
11.58
11.58
11.58
Total Storage (MGD)
7.76
7.76
7.76
7.76
7.36
7.36
7.36
7.36
7.36
7.36
Wells
9
10
10
10
10
10
10
10
10
10
Miles of water lines
122
122
122
121
120
120
120
120
120
120
Valves
2,750
2,750
2,750
2,636
2,621
2,626
2,626
2,514
2,501
2,501
Hydrants
1,450
1,450
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
64
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:
Fiscal Year Ended June 30
140
CITY OF EL MIRAGE, ARIZONA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
Function/Program
Public Safety
Police
Calls/incidents responded to
25,729
28,847
33,629
27,771
26,362
28,611
28,597
29,530
29,587
29,884
Citations issued
2,359
3,409
3,820
2,542
2,465
2,263
2,241
2,246
1,807
1,825
Fire
Number of responses
4,812
4,657
4,406
4,009
4,277
4,559
4,513
4,054
4,564
3,685
Inspections
92
60
430
255
131
324
302
267
214
295
Public Works and Streets
Square feet of buildings to maintain
112,594
109,654
109,654
109,654
109,654
109,654
87,654
87,654
87,654
76,425
Vehicles/equipment maintained per month
154
153
151
149
134
125
125
123
119
113
Street miles maintained
248
248
248
248
248
242
240
240
240
240
Community Development
Building safety inspections performed
1,179
2,206
2,005
2,208
2,558
2,825
3,143
3,919
3,978
2,681
Annual new residential starts
17
45
124
6
26
26
48
58
77
47
Water
Water accounts billed
12,767
11,968
11,728
11,517
Residential
12,072
11,246
11,020
10,858
10,471
12,741
10,308
10,447
10,630
10,015
Commercial
695
722
708
659
606
665
634
611
512
584
Acre feet of water delivered
5,466
5,659
4,986
4,696
4,790
4,829
4,543
4,612
4,415
4,426
Sewer
Sewage treated (million gallons per day)
1.96
2.10
2.00
2.00
1.81
1.92
1.93
1.87
1.87
1.87
Sewer service connections
10,950
10,970
10,730
10,630
10,628
10,620
10,614
10,606
9,077
9,077
The source of this information is the various government departments.
Calendar Year
Source:
141