Annual Expenditure Limitation Report
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CITY OF EL MIRAGE, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2022
Financial Reports
City of El Mirage
Annual Expenditure Limitation Report
Year Ended June 30, 2022
Independent Accountants’ Report
1
Annual Expenditure Limitation Report—Part I
2
Annual Expenditure Limitation Report—Part II
3
Annual Expenditure Limitation Report—Reconciliation
4
Notes to Annual Expenditure Limitation Report
5
INDEPENDENT ACCOUNTANTS’ REPORT
The Auditor General of the State of Arizona and
The Honorable Mayor and City Council
City of El Mirage, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of City of El Mirage,
Arizona for the year ended June 30, 2022 and the related notes to the report. The City’s
management is responsible for presenting this report in accordance with the uniform expenditure
reporting system as described in Note 1. Our responsibility is to express an opinion on this report
based on our examination.
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the Uniform Expenditure Reporting System in all material respects. An examination
involves performing procedures to obtain evidence about the amounts and disclosures in the report.
The nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of the report, whether due to fraud or error. We
believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
In our opinion, the Annual Expenditure Limitation Report of City of El Mirage, Arizona, referred to
above is presented in accordance with the Uniform Expenditure Reporting System as described in
Note 1 in all material respects.
Tempe, Arizona
November 23, 2022
Tempe • Scottsdale • Casa Grande www.hhcpa.com
CITY OF EL MIRAGE, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – PART I
Year Ended June 30, 2022
1.
$
133,999,665
2.
-
3.
$
133,999,665
4.
$
48,084,466
5.
-
6.
-
7.
-
8.
$
48,084,466
9.
+
10.
$
48,084,466
11.
$
85,915,199
Name and title:
Telephone number:
Date:
Economic Estimates Commission expenditure limitation
Voter-approved alternative expenditure limitation
Enter applicable amount from line 1 or line 2
Amount subject to the expenditure limitation (total amount from Part II, line C)
Board‑authorized expenditures necessitated by a disaster the Governor declared
Board‑authorized expenditures necessitated by a disaster the Governor did not declare
Prior‑year, voter-approved expenditures to exceed the expenditure limitation for the
reporting fiscal year
I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the
requirements of the Uniform Expenditure Reporting System.
Signature of chief financial officer:
Board-authorized excess expenditures for the previous fiscal year necessitated by a disaster
the Governor did not declare and the voters did not approve
Subtotal
Total adjusted amount subject to the expenditure limitation
Amount under (in excess of) the expenditure limitation
2
See accompanying notes
Robert A. Nilles
Deputy City Manager
623-876-2955
11/23/2022
CITY OF EL MIRAGE, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – PART II
Year Ended June 30, 2022
Governmental
Enterprise
Description
funds
funds
Total
51,921,056
$
15,281,530
$
67,202,586
$
12,788,761
-
12,788,761
2,089,574
1,821,382
3,910,956
209,431
64,784
274,215
-
-
-
2,144,188
-
2,144,188
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,231,954
1,886,166
19,118,120
A. Amounts reported on the Reconciliation, line D
B. Less exclusions claimed:
1. Debt proceeds (Note 3)
2. Debt service requirements (Note 4)
3. Dividends, interest, and gains on the sale or redemption of investment
securities
4. Trustee or custodian
5. Grants and aid from the federal government
6. Grants, aid, contributions, or gifts from a private agency, organization, or
individual, except amounts received in lieu of taxes
7. Amounts received from the State of Arizona
8. Quasi-external interfund transactions
9. Voter-approved amounts accumulated for the purchase of land, and the
purchase or construction of buildings or improvements
10. Highway user revenues in excess of those received in fiscal year 1979-80
11. Contracts with other political subdivisions
12. Refunds, reimbursements, and other recoveries
13. Voter-approved exclusions not identified above
14. Prior years carryforward
15. Qualifying capital improvement expenditures repaid in accordance with A.R.S.
§41-1279.07
16. Total exclusions claimed
C. Amounts subject to the expenditure limitation
34,689,102
$
13,395,364
$
48,084,466
$
3
See accompanying notes
CITY OF EL MIRAGE, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – RECONCILIATION
Year Ended June 30, 2022
Governmental
Enterprise
funds
funds
Total
A.
51,921,056
$
12,952,288
$
64,873,344
$
B. Subtractions:
1. Items not requiring use of current financial resources:
a. Depreciation
-
2,791,436
2,791,436
b. Loss on disposal of capital assets
-
-
-
c. Bad debt expense
-
-
-
d. Pension and other postemployment benefits (OPEB) expense (Note 2)
-
125,869
125,869
e. Claims incurred but not reported (IBNR)
-
-
-
f. Landfill closure and postclosure care costs and pollution remediation
-
-
-
2.
-
-
-
3.
-
-
-
4.
-
-
-
5.
-
-
-
6.
-
2,917,305
2,917,305
C.
1. Principal payments on long-term debt
-
1,455,302
1,455,302
2.
-
2,876,486
2,876,486
3. Amounts paid in the current year but reported as expenses in previous years:
a. Claims previously recognized as IBNR
-
-
-
b. Landfill closure and postclosure care costs and pollution remediation
-
-
-
4.
-
914,759
914,759
5.
-
-
-
6.
-
5,246,547
5,246,547
D.
51,921,056
$
15,281,530
$
67,202,586
$
Involuntary court judgments
Total subtractions
Additions:
Amounts reported on Part II, line A
Capital asset acquisitions
Pension and OPEB contributions paid in the current year (Note 2)
Total additions
Transfers to separate legal entities
Present value of net minimum capital lease and installment purchase contract
payments recorded as expenditures at the agreements’ inception
Total expenditures/expenses/deductions and applicable other financing uses, special
items, and extraordinary items reported within the fund financial statements
Expenditures of separate legal entities established under Arizona Revised Statutes
Description
Required fees paid to the Arizona Department of Revenue
4
See accompanying notes
CITY OF EL MIRAGE, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2022
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform
Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07.
The AELR excludes expenditures, expenses, or deductions of certain revenues specified in the
Arizona Constitution, Article IX, §20, from the total expenditures, expenses, or deductions
reported in the fund financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on part II and each subtraction or addition in the reconciliation that cannot be
traced directly to an amount reported in the fund financial statements. All references to financial
statement amounts in the following notes refer to the Statement of Revenues, Expenditures,
and Changes in Fund Balances for the Governmental Funds, Statement of Revenues,
Expenses, and Changes in Fund Net Position for the Proprietary Funds, Statement of Cash
Flows for the Proprietary Funds and the Statement of Changes in Fiduciary Net Position for the
Fiduciary Funds.
NOTE 2
RECONCILIATION ADDITIONS AND DEDUCTIONS
The deductions for depreciation, bad debt expense, and pension expense and the additions for
principal payments, the acquisition of capital assets, and pension contributions are all provided
in the Statement of Revenues, Expenses, and Changes in Fund Net Position for the proprietary
funds; the Statement of Cash Flows for the proprietary funds and the financial statement
footnotes 6, 8, and 9.
Total expenses as reported on the reconciliation are summarized as follows:
Total Expenses:
Enterprise Funds
Operating expenses
$ 12,586,208
Non-operating expenses
366,080
Total
$ 12,952,288
Total enterprise debt payments are related to loans payable during the current fiscal year.
There were no additions to debt for the enterprise funds.
The $125,869 subtraction for pension expense and other post-employment benefit (OPEB)
expense consists of the changes in the net pension and OPEB assets and liabilities, and
changes in deferred inflows and outflows related to pensions and OPEB recognized in the
current year in the Enterprise Funds. The addition of $914,759 for pension contributions paid in
the current year consists of the required pension contributions made to the Arizona State
Retirement System from the Enterprise Funds.
5
CITY OF EL MIRAGE, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2022
NOTE 3
RECONCILIATION OF DEBT PROCEEDS
The exclusion reported on the reconciliation are summarized as follows:
Other Financing Sources and Uses:
Refunding bonds issued
$ 11,575,000
Premium on refunding bonds issued
1,213,761
Total
$ 12,788,761
NOTE 4
RECONCILIATION OF DEBT SERVICE REQUIREMENTS
The exclusion reported on the reconciliation are summarized as follows:
Governmental
Enterprise
Other Financing Sources and Uses:
Principal expenditures
$ 1,435,000
$ 1,455,302
Interest expenditures
654,574
366,080
Total
$ 2,089,574
$ 1,821,382
6