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City of Tolleson, Arizona
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Prepared by:
City of Tolleson Finance Department
9055 W. Van Buren
Tolleson, Arizona 85353
City of Tolleson, Arizona
Table of Contents
June 30, 2024
Page
Introductory Section
Transmittal Letter
i
GFOA Certificate of Achievement
v
List of Principal Officials
vi
Organizational Chart
vii
Financial Section
Independent Auditors' Report
1
Required Supplementary Information (Unaudited)
Management's Discussion and Analysis
7
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position
21
Statement of Activities
22
Governmental Fund Financial Statements:
Balance Sheet
25
Reconciliation of the Balance Sheet to the Statement of Net Position
26
Statement of Revenues, Expenditures and Changes in Fund Balances
27
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
28
Proprietary Fund Financial Statements:
Statement of Net Position
31
Statement of Revenues, Expenses and Changes in Fund Net Position
32
Statement of Cash Flows
33
Notes to Financial Statements
37
City of Tolleson, Arizona
Table of Contents
June 30, 2024
Page
Required Supplementary Information
Budgetary Comparison Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budged and Actual:
General Fund
75
Public Safety Tax Fund
77
Notes to Budgetary Comparison Schedules
78
Schedule of the City's Proportionate Share of the Net Pension Liability Cost - Sharing
Pension Plan
79
Schedule of Changes in the City's Net Pension Liability and Related Ratios Agent
Pension Plan
80
Schedule of the City Pension Contributions
82
Notes to Pension Plan Schedules
83
Supplementary Information
Nonmajor Governmental Funds Financial Statements:
Combining Balance Sheet
87
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
88
Budgetary Comparison Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
Highway User Revenue Fund
91
Grants Fund
92
Debt Service Fund
93
City of Tolleson, Arizona
Table of Contents
June 30, 2024
Page
Statistical Section
Net Position by Component
97
Changes in Net Position
98
Fund Balances, Governmental Funds
100
Changes in Fund Balances, Governmental Funds
101
General Government Tax Revenues by Sources
103
Assessed Value and Estimated Actual Value of Taxable Property
104
Property Tax Rates Direct and Overlapping Governments
105
Principal Property Taxpayers
106
Property Tax Levies and Collections
107
Taxable Sales by Category
108
Direct and Overlapping Sales Tax Rates
109
Ratio of Outstanding Debt by Type
110
Ratios of General Bonded Debt Outstanding
111
Direct and Overlapping Governmental Activities Debt
112
Calculation of Legal Debt Margin
113
Legal Debt Margin Information
114
Pledged Revenue Coverage
115
Demographic and Economic Statistics
116
Principal Employers
117
Full-Time Equivalent Employees by Function
118
Operating Indicators by Function
119
Capital Asset Statistics by Function/Program
120
Property Valuations
121
Secondary Valuations as a Percentage of Estimated Valuations
122
Secondary Valuations by Legal Class
123
Secondary Valuations by Major Taxpayer
124
Introductory Section
i
December 18, 2024
Honorable Mayor, Members of the City Council, and Citizens of the City of Tolleson, Arizona:
State statutes require that cities and towns 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 auditing 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 Finance Report (ACFR) of the City of Tolleson, Arizona for the fiscal year ended June 30,
2024. This report was prepared by the Finance Department.
This report consists of senior management’s representations concerning the finances of the City.
Consequently, senior 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 to
protect both 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 from 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 Baker Tilly, LLP, 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, 2024, 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 auditor 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, 2024, are fairly presented in conformity with accounting principles generally accepted in
the United States of America. The independent auditors’ report is presented as the first component of the
financial section of this report.
The independent audit of the financial statements of the city was part of a broader, federally mandated Single
Audit as required by the provisions of the Single Audit Act Amendments 1996 and the audit requirements of
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) to meet the special needs of
federal grantor agencies. The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the audited City
internal controls and compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the administration of federal awards. These reports are available in a separately
issued single Audit Reporting Package.
9055 W. Van Buren St. • Tolleson, AZ 85353 • Direct: (623) 936-7111 • Fax: (623) 936-7117 • TTY users, dial 711 for Relay
ii
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.
Profile of the City
The City of Tolleson, founded in 1929, operates under a Council-Manager form of government. The Mayor
and six City Council members are elected at large on a non-partisan ballot and serve overlapping four-year
terms. The City Council is vested with policy and legislative authority and is responsible for passing
ordinances; adopting the budget; appointing commission board members; and appointing the positions of City
Manager, City Attorney, and Presiding Judge. The City Manager is responsible for carrying out the policies
and ordinances of the City Council, as well as overseeing the day-to-day operations of the City.
The City encompasses approximately 6 square miles. Although small, Tolleson is in the middle of it all, with
Phoenix International Raceway 10 minutes south and entertainment venues in Glendale, Peoria, Goodyear
and Phoenix 10 minutes north and east. Tolleson is the west valley’s industrial employment center hosting
over 20 Fortune 500 companies employing more than 20,000 resulting in one of the most impressive jobs to
residents’ ratios in the nation.
The City provides a full range of municipal services including police and fire protection, sanitation service,
water and sewer services, construction and maintenance of streets, recreational activities including libraries
and cultural events, public transportation, planning and zoning services, and general administrative services.
Economic Condition and Outlook
The long-run outlook calls for continued growth. The state of Arizona is forecast to generate job, income, and
population gains at a faster pace than the nation. Tolleson historically generates gains in excess of the nation
and faster than the state average.
Revenues in the General Fund increased by 21.3% and General Fund revenues exceeded the budget by
29.8%. Expenditures in the General Fund increased by $3,734,050, which is approximately 10.5%. The City
was able to provide salary increases to employees while maintaining costs in commodities and services in
order to stay within budget. The City’s budget is structurally balanced with ongoing revenues supporting
ongoing expenditures. One-time revenues like contracting transaction privilege taxes and building permits
support one-time expenditures. The revenue forecast for fiscal year 2024-2025 anticipated modest General
Fund revenue growth.
Current Condition
The City continues to diversify its tax base, and is in the process of adding several new retail opportunities.
Sales tax revenues are the major revenue source, and diversification of the sales tax revenue is a high priority
for the city. The financial performance of the City as a whole is reflected in its governmental funds.
As of June 30, 2024, the City’s governmental funds reported a combined fund balance of $107,064,048 of
which $68,775,211 is unassigned and available for spending at the City’s discretion.
The City, like most municipalities, is significantly dependent upon sales tax revenues which are subject to
economic fluctuations. Sales tax revenues comprised 74% of general fund revenues. Sales taxes and
revenues related to the residential and commercial construction industry continued to improve during the
fiscal year.
iii
Future Economic Outlook
The economic outlook for fiscal-year 2025 remains stable. Retail sales tax growth is strong compared to the
prior year, and combined with conservative budgeting, positive budget variances have been maintained.
There is still caution associated with inflation, tight labor markets, and supply chain limitations that could
impact economic conditions in the future. The long-term outlook for Tolleson continues to be strong with the
expectation that Arizona will continue to outpace the nation in growth and income related metrics. The City
will continue to facilitate economic growth through capital projects in the coming year, including the
construction of a new Aquatics Center.
Accomplishments and Initiatives
During fiscal year 2024, the city had several significant accomplishments and initiatives.
The Police Department modernized the 911 call-taking system from a regional to statewide system.
The City expanded the Senior Center hours and rebranded the center to the Tolleson Social Club.
The City completed 15 housing rehabilitation projects, assisted 236 families with rental assistance
($639,000) and 294 families with utility bill assistance ($294,000).
The Tolleson micro transit program was initiated utilizing Uber/Lyft to provide transit services in the Tolleson
area. The micro transit program replaced a fixed route bus and reduced budgeted costs by $200,000.
The City received a federal appropriations grant and will utilize local funds to provide two pedestrian bridges to
help facilitate safer pedestrian travel. One of the bridges is planned near the high school and will provide safer
pedestrian travel and enhance vehicular flow in the area.
The City is in the design phase for a year-round aquatic facility and should begin construction this year. The
facility has an initial budget of $22M.
Expenditure Limitation
On June 30, 1980 Arizona voters approved general propositions amending the Arizona Constitution to
establish expenditure and revenue limitations for local governments. The purpose of the expenditure
limitation is to control expenditures and to limit future increases in spending to adjustments for inflation,
deflation and population growth of the City.
On November 5, 2024, the voters of the City approved an alternative expenditure limitation, the effect of
which is that the total budgeted expenditures of each yearly budget becomes the expenditure limitation for
that year on a total budget basis. This alternative expenditure limitation is effective for four years.
Single Audit
As a recipient of Federal, State and County financial assistance, the City is responsible for ensuring that
adequate internal controls are in place to ensure compliance with applicable laws, regulations, contracts and
grants related to those programs. Internal control is subject to periodic evaluation by management.
As part of the City’s single audit described earlier, tests are made to determine the adequacy of the internal
controls, including that portion related to Federal financial assistance programs, as well as to determine that
the City has complied with applicable laws and regulations.
iv
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive
financial report for the fiscal year ended June 30, 2023. This was the eighth year that the city has achieved
this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and
we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation of this report would not have been possible without the efficient, effective and dedicated
services of the entire staff of the Finance Department and the assistance of personnel in the various
departments. We would like to express our appreciation to all members who assisted and contributed to the
preparation of this report.
We also wish to express our sincere appreciation to the Mayor, Vice Mayor, Council and City Management
for unfailing support in maintaining the highest standards of professionalism in the management of the City of
Tolleson’s finances.
Respectfully Submitted:
Kevin H. Artz, CPA
Joeseph Wagner-Corona, CPA
Dora Hu, CPA
Chief Financial Officer
Assistant Finance Director
Finance Manager
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tolleson
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
v
CITY OFTOLLESON,ARIZONA
PRINCIPAL OFFICIALS OF THE CITY
YEARENDED JUNE 30,2024
MAYOR AND COUNCIL
Juan F Rodriguez, Mayor
Jimmy Davis, ViceMayor
Clorinda Erives, Council Member
Linda Laborin, Council Member
Christine Chavira, Council Member
Adolfo Gamez,Council Member
&UX]LWD9. Mendoza, Council Member
MANAGEMENT STAFF
Reyes Medrano, Jr., City Manager
Wendy Jackson, Deputy City Manager/Employee Resources Director
Pilar C. Sinawi, Deputy City Manager/Chief Government Affairs Officer
DEPARTMENT HEADS
Steve Holliday, Chief Technical Officer
Rudy Mendoza, Public Safety Director/Police Chief
-DPLH0F&UDFNHQ, Utilities Director
Jason Earp, Development Services Director
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John Lamb,Magistrate
Crystal Zamora, City Clerk
5DQG\%DEFKXN Field Operations & Parks Director
.HYLQ$UW], Chief Financial Officer
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Santiago Cornejo, Human Services Director
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vii
Preparedness
Library
Services
Clerk
Public Affairs
Services
Finance
Utilities
Field Operations
Fire
Police
Resources
Manager
Attorney
Residents
City of Tolleson Organization Chart
Tolleson operates under the Council-Manager form of government. Legislative authority is vested in a seven-member City
Council, consisting of a Mayor, Vice-Mayor and five council members, all elected at large for a term of four years. The Mayor and
Council appoint the City Attorney, City Magistrate and City Manager. The City Manager is responsible for the oversight and
administration of the operations of the City.
Financial Section
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly
International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services
to their clients and are not licensed CPA firms.
Independent Auditors' Report
To the Honorable Mayor and City Council of
City of Tolleson, 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 Tolleson, Arizona
(the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City as of June 30, 2024 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities
under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Other Matters
Compliance Over Use of Highway User Revenue Fund and Other Dedicated State Transportation
Revenue Monies
In connection with our audit, nothing came to our attention that caused us to believe that the City 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’s noncompliance with the
authorized transportation purposes referred to above, insofar as they relate to accounting matters.
1
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’s Council and
management, and other responsible parties within the City 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'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
opinion. 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 GAAS and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City's ability to continue as a going concern for a reasonable period
of time.
2
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 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's basic financial statements. The supplementary informationas listed in the table of contents
is presented for purposes of additional analysis and is 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 supplementary information is fairly stated in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report.
The other information comprises the introductory section and statistical section but does not include the basic
financial statements and our auditors' report thereon. Our opinion 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.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2024
on our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
Tempe, Arizona
December 18, 2024
4
5
Financial Section
Management's Discussion and Analysis
6
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
7
Management's Discussion and Analysis
As management of the City of Tolleson, Arizona (the 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,
2024. 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 on page i of this report.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $265,772,936 (net position).
The unrestricted net position, which represents the amounts available to meet the City's ongoing
obligations to citizens and creditors was a positive $121,533,094.
The City's total net position increased by $34,450,004 primarily due to an increase in the general
revenues received and program revenues related to business-type activities. The largest increases
of $7,510,884 came from sales tax driven by a growing local economy and $1,569,903 came from
interest income.
The governmental activities expenses of $42,691,149 were higher than the prior year amount of
$37,955,786.
The City had an unrealized gain on investment of $497,880 comparing to the prior fiscal year of
unrealized gain on investment of $7,564.
At the end of the current fiscal year, unassigned fund balance for the General Fund was $68,775,211
or 175% of total General Fund expenditures and is available for spending at the government's
discretion. Assigned fund balance for the General Fund was $23,665,158, which are spendable
resources constrained by the City's intent to be used for specific purposes.
General Fund revenues (on a budgetary basis) were higher than budgeted inflows by $13,207,987
for the fiscal year ended June 30, 2024. Budgetary basis expenditures of the General fund were
73% ($14,850,353 in savings) of the final budgeted expenditures.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements consist of three components: (1) government-wide
financial statements, (2) fund financial statements and (3) the notes to financial statements. This report also
includes supplementary information intended to furnish additional detail to support the basic financial
statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to a private-sector business.
Statement of Net Position - presents financial information on all of the City's assets, liabilities and
deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
Statement of Activities - presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused vacation leave).
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
8
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government, public
safety, highways and streets, culture and recreation, economic development and health and welfare.
The business-type activities of the City include water, wastewater and sewer and sanitation and trash.
The government-wide financial statements can be found on pages 21-22 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in assessing a government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains six individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the General Fund and Public Safety Tax Fund, which are considered to be
major funds. Data from three additional governmental funds is presented separately. Fund data for the
nonmajor governmental fund is provided in the form of combining statements in the combining and
individual fund statements and schedules section of this report.
The City adopts an annual appropriated budget. A budgetary comparison schedule has been provided for
the General Fund and Public Safety Tax Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25-28 of this report.
Proprietary Funds - The City maintains three different proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its water, wastewater and sewer and sanitation
operations.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the Water Fund,
Wastewater and Sewer Fund and Sanitation and Trash Fund. Water Fund and Wastewater and Sewer
Fund are considered to be major funds of the City. However, all three funds are displayed in their own
separate column in the proprietary fund financial statements.
The basic proprietary fund financial statements can be found on pages 31-34 of this report.
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
9
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties
outside of the government. The City did not have any fiduciary funds to report at year end.
Notes to the Financial Statements - The notes provide additional information that is necessary to
acquire a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 37-72 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents required supplementary information concerning the City's progress in funding its obligation
to provide pension benefits to its employees. Required supplementary information can be found
immediately after the notes to the financial statements on pages 75-84.
The combining statements referred to earlier in connection with nonmajor governmental funds and nonmajor
governmental fund budgetary comparisons are presented immediately following the required supplementary
information on pensions. Combining and individual fund statements and schedules can be found on
pages 87-93 of this report.
Government-Wide Financial Analysis
Net position may serve over time as a useful indicator of the City's financial position. The City's combined
assets exceed liabilities by $265,772,936 as of June 30, 2024 as shown in the following condensed statement
of net position. The City has chosen to account for its water, wastewater and sewer and sanitation operations
in an enterprise fund which is shown as Business-Type Activities.
City of Tolleson, Arizona
Condensed Statement of Net Position
Governmental Activities
Business-Type Activities
Total Primary Government
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Current and other assets
$ 111,127,534
$
90,728,476
$
48,631,214
$
48,999,449
$ 159,758,748
$ 139,727,925
Capital assets
86,114,152
79,683,691
63,896,743
57,950,266
150,010,895
137,633,957
Total assets
197,241,686
170,412,167
112,527,957
106,949,715
309,769,643
277,361,882
Deferred outflows of
resources
9,258,790
8,010,429
973,224
719,701
10,232,014
8,730,130
Long-term liabilities
35,002,933
35,751,255
11,764,675
12,619,556
46,767,608
48,370,811
Other liabilities
3,028,760
2,787,696
2,540,722
1,867,704
5,569,482
4,655,400
Total liabilities
38,031,693
38,538,951
14,305,397
14,487,260
52,337,090
53,026,211
Deferred inflows of
resources
1,659,494
1,543,568
232,137
199,301
1,891,631
1,742,869
Net position:
Net investment in capital
assets
71,139,238
63,268,921
57,908,288
54,143,716
129,047,526
117,412,637
Restricted
14,612,531
13,983,979
579,785
549,112
15,192,316
14,533,091
Unrestricted
81,057,520
61,087,177
40,475,574
38,290,027
121,533,094
99,377,204
Total net position
$ 166,809,289
$ 138,340,077
$
98,963,647
$
92,982,855
$ 265,772,936
$ 231,322,932
Governmental Activities - Current and other assets increased in governmental activities by
$20.4 million. Deferred outflows of resources increased by $1.2 million and deferred inflows of
by $241 thousand largely due to an increase in accounts payable.
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
10
By far, the largest portion of the City's net position, $129,047,526, reflects its investment in capital assets
(e.g., land, buildings, machinery, equipment, vehicles and infrastructure, net of accumulated depreciation
and less any related outstanding debt that was used to acquire those assets). The City uses these capital
assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future
spending. Although the City's investment in capital assets is reported net of related debt, it should be
noted that the resources used to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position, $15,192,316 represents resources that are subject to
external restriction on how they may be used. As of the end of the current year, the City's unrestricted net
position was a positive balance of $121,533,094.
The City's overall net position increased by $34,450,004 from the prior fiscal year. The reasons for this
overall increase are discussed in the following sections for governmental and business-type activities.
The City's programs include: General Government, Public Safety, Highways and Streets, Economic
Development, Culture and Recreation and Health and Welfare. Each programs' net cost (total cost less
revenues generated by the activities) is presented below. The net cost shows the extent to which
the City's general taxes support each of the City's programs.
City of Tolleson, Arizona
Changes in Net Position
Governmental Activities
Business-Type Activities
Total Government
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues:
Program revenues:
Charges for service
$
4,106,335
$
3,029,385
$
19,135,830
$
19,523,504
$
23,242,165
$
22,552,889
Operating grants and
contributions
1,650,870
1,388,004
-
-
1,650,870
1,388,004
Capital grants and
contributions
333,577
221,661
2,360,424
65,187
2,694,001
286,848
General revenues:
Taxes
59,930,022
52,143,679
1,167,227
1,073,680
61,097,249
53,217,359
Urban revenue sharing
1,923,309
1,383,873
-
-
1,923,309
1,383,873
Other
revenue/(expense)
3,216,248
1,887,555
1,898,377
1,159,854
5,114,625
3,047,409
Total revenues
71,160,361
60,054,157
24,561,858
21,822,225
95,722,219
81,876,382
Expenses:
General government
12,285,858
11,705,795
-
-
12,285,858
11,705,795
Public safety
18,972,146
16,298,825
-
-
18,972,146
16,298,825
Highways and streets
2,636,514
3,122,637
-
-
2,636,514
3,122,637
Culture and recreation
5,470,852
4,740,527
-
-
5,470,852
4,740,527
Economic development
1,768,355
538,311
-
-
1,768,355
538,311
Health and welfare
1,081,804
1,014,599
-
-
1,081,804
1,014,599
Interest on long-term
debt
475,620
535,092
-
-
475,620
535,092
Water
-
-
7,439,306
6,846,830
7,439,306
6,846,830
Wastewater and sewer
-
-
10,750,021
10,554,083
10,750,021
10,554,083
Sanitation
-
-
391,739
421,727
391,739
421,727
Total expenses
42,691,149
37,955,786
18,581,066
17,822,640
61,272,215
55,778,426
Change in net
position
28,469,212
22,098,371
5,980,792
3,999,585
34,450,004
26,097,956
Net position, beginning
138,340,077
116,241,706
92,982,855
88,983,270
231,322,932
205,224,976
Net position, ending
$ 166,809,289
$ 138,340,077
$
98,963,647
$
92,982,855
$ 265,772,936
$ 231,322,932
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
11
Governmental Activities - During the current fiscal year, net position for governmental activities
increased $28,469,212 from the prior fiscal year for an ending balance of $166,809,289. The increase in
the overall net position of governmental activities is primarily due to an increase in taxes revenue and
interest income reported as part of other revenue and a decrease in highways and streets expenses.
Revenues increased $11.1 million from the prior year mainly due to an increase in sales tax revenue and
charges for services revenue. The City collected more zoning, building permit and building plans review
fees comparing to the prior year.
Expenses increased from $38.0 million in the prior year to $42.7 million in the current year. Most of the
City's programs expenses, such as General Government, Public Safety, Culture and Recreation,
Economic Development, and Health and Welfare all increased in FY 2024.
As shown in the chart below, revenues generated by the City's programs are not sufficient to cover the
costs. The City relies on sales taxes, property taxes and other general revenues to cover the costs
associated with the various programs.
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Expense and Program Revenues - Governmental Activities
(in Thousands)
Expense
Revenue
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
12
Business-Type Activities - For the City's business-type activities, the results for the current fiscal year
were positive in that overall net position increased to reach an ending balance of $98,963,647. The
change in net position for business-type activities (water, sewer and wastewater, sanitation and trash)
increased by $1,981,207 from the prior fiscal year. This was due to an increase in capital grants and
contributions and other revenue.
Charges for
services
6%
Operating grants
and contributions
2%
Capital grants and
contributions
0%
Taxes
84%
Urban revenue
sharing
3%
Other revenue
5%
Revenue by Source - Governmental Activities
$-
$5,000
$10,000
$15,000
$20,000
$25,000
2024
2023
Expenses and Program Revenues - Business-type Activities
(in Thousands)
Program Revenue
Expense
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
13
Financial Analysis of the Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's
net resources available for discretionary use as they represent the portion of fund balance which has not
yet been limited to use for a particular purpose by either an external party, the City itself or a group or
individual that has been delegated authority to assign resources for use for particular purposes by
the City's Council.
As of June 30, 2024, the City's governmental funds reported combined fund balances of $107,064,048,
an increase of $19,728,056 in comparison with the prior year. Of this amount, $68,775,211 or 64.2%
constitutes unassigned fund balance, which is available for spending at the government's discretion.
$23,665,158 or 22.1% constitutes assigned fund balance, which is funds set aside for specific purposes
that are aligned with City's strategic priorities for planned expenditures or projects. The remainder of the
fund balance is nonspendable or restricted, to indicate it is (1) not in spendable form, $11,148; or (2)
restricted for particular purposes, $14,612,531.
Analysis of Individual Funds
The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund
balance in the general fund was $68,775,211, while total fund balance was $92,800,202 As a measure of
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 175.2% of total general fund expenditures, while total fund
balance represents 236.4% of that same amount.
The fund balance of the City's general fund increased by $19,059,283 during the current fiscal year, with the
increase primarily due to an increase in sales taxes, licenses and permits, and interest income.
The Public Safety Tax Fund had a $1,013,479 increase in fund balance during the current fiscal year. The key
factor to the increase was an increase in sales taxes.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the business-type activities
portion of the government-wide financial statements, but in more detail.
Unrestricted net position of the Water Fund at the end of the year was $17,866,815, the Wastewater and
Sewer Fund was $22,078,017, and the Sanitation and Trash Fund was $530,742. The total growth in net
position for each of the funds was $2,173,132, $3,722,163, and $85,497, respectively. The charges for
services increased in the Water and Sanitation and Trash Funds, but decreased in the Wastewater and
Sewer Fund. Additionally, property taxes increased in both Water and Wastewater and Sewer Funds.
Furthermore, interest income increased in Water, Wastewater and Sewer, and Sanitation and Trash
Funds.
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
14
General Fund Budgetary Highlights
Original budget compared to final budget. During the year, there was a need to reallocate appropriations
among departments with four budget amendments to the adopted budget.
Final budget compared to actual results. The most significant difference between estimated revenues and
actual revenues were as follows:
Revenue Source
Estimated
Revenues
Actual
Revenues
Difference
Sales taxes
$
32,400,660
$
42,410,103
$
10,009,443
Interest income
1,008,000
2,471,293
1,463,293
General Fund expenditures were less than budgeted appropriations by $14,850,353. The five budget
organizations with the largest variances include Planning and Engineering at $7,544,908, Field Operations
Building at $2,739,699, Finance at $2,516,301, Economic Development at $829,074, and Field Operations
Parks at $664,375. These expenditure variances were below the related appropriations. However, three
budget organizations exceeded their related appropriations are Aquatics Center at $(2,732,885), Police Field
Operations at $(339,021), and City Clerk at $(16,805). Aquatics Center expenditures exceeded its budgeted
appropriation due to the purchase of land for the City's new Aquatics Center. Both Police Field Operations
and City Clerk expenditures exceeded their budgeted appropriations due to the effects of GASB Statement
No. 96, Subscription-Based Information Technology Arrangements.
Capital Asset and Debt Administration
Capital Assets
The City's investment in capital assets for its governmental and business-type activities as of June 30,
2024, amounts to $150,010,895 (net of accumulated depreciation/amortization). This investment in capital
assets includes land, buildings, furniture, machinery, equipment, vehicles, improvements and the
wastewater treatment plant. The total increase in capital assets for the current fiscal year was 9.0%.
Governmental Activities
Business-Type Activities
Total Government
2024
2023
2024
2023
2024
2023
Land
$
12,618,580
$
7,608,899
$
7,047,180
$
4,034,932
$
19,665,760
$
11,643,831
Construction in progress
1,640,430
364,166
1,572,737
594,719
3,213,167
958,885
Buildings
37,446,607
38,653,202
22,942,578
23,772,932
60,389,185
62,426,134
Furniture, equipment and
vehicles
4,285,674
3,530,137
21,707,153
19,934,289
25,992,827
23,464,426
Improvements
28,868,235
29,329,492
10,627,095
9,613,394
39,495,330
38,942,886
Intangible Right-to-use
Subscription Assets
1,254,626
197,795
-
-
1,254,626
197,795
Total
$
86,114,152
$
79,683,691
$
63,896,743
$
57,950,266
$ 150,010,895
$ 137,633,957
Major capital assets acquisitions during the current fiscal year included the following:
Purchased two plots of land totaling $8,021,929.
Construction in progress for the City's new fire truck totaling $1,053,421.
Improvements made to the City's Wastewater Treatment Plant totaling $861,818.
Purchase thirteen vehicles totaling $831,091.
Rehabilitation of Secondary Clarifier #3 at the City's Wastewater Treatment Plant totaling
$728,686.
Purchase a street sweeper totaling $375,862.
Installation of a K9 Facility at the City's Police Department totaling $135,163.
Additional information on the City's capital assets can be found in Note 4 of this report.
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
15
Debt Administration
At the end of the current fiscal year, the City had total bonded debt outstanding of $15,125,000. Of this
amount, $12,365,000 is debt backed by the full faith and credit of the government. The remainder of
the City's long-term obligations is comprised of compensated absences, subscription liabilities, loans
payable and the City's net pension liability.
Governmental Activities
Business-Type Activities
Total Government
2024
2023
2024
2023
2024
2023
General obligation bonds
$
8,900,000
$
10,474,142
$
2,165,000
$
2,880,858
$
11,065,000
$
13,355,000
General obligation bonds,
refunding
1,040,000
1,216,000
260,000
304,000
1,300,000
1,520,000
Revenue bonds, refunding
2,760,000
3,255,000
-
-
2,760,000
3,255,000
Bond premiums
1,123,229
1,269,203
179,385
216,822
1,302,614
1,486,025
Loans payable
-
-
3,558,600
4,087,105
3,558,600
4,087,105
Total
$
13,823,229
$
16,214,345
$
6,162,985
$
7,488,785
$
19,986,214
$
23,703,130
The City's total debt decreased by $3,716,916 (15.7%) during the current fiscal year. This was due to the
retirement of debt resulting from regularly scheduled debt payments.
The City maintained AA ratings from Standard & Poor's for general obligation debt.
The State constitution imposes certain debt limitations on the City, which are six percent (6%) and twenty
percent (20%) of the assessed valuation of the City. Additional information on the debt limitations and
capacities may be found in Table 15 in the statistical section of this report.
Next Year's Budget and Economic Factors
The following economic factors currently affect the City and were considered in developing the 2024-2025
fiscal year budget.
The unemployment rate for the City is currently 3.4%, which remains unchanged from a rate of 3.4% a year
ago. Labor shortages continue to be an issue in all sectors of employment.
The City anticipates that interest rates will start to trend downward in the next year, while inflation will slightly
decrease from the current level of approximately 2.6%.
Increases are expected in wages, health insurance costs, pension costs and other employee benefit costs.
The City continues to be a member of Southwest Risk Services, a member owned risk sharing pool for
property, liability and workers' compensation insurance administrative services in Arizona.
The City's daytime population exceeds 25,000 persons a day requiring 24-hour services for residents and
nonresidents alike.
Overall, the financial condition of the City has improved during FY 2024 and the actions of the City Council
will help to ensure this continues.
City of Tolleson, Arizona
Management's Discussion and Analysis
June 30, 2024
(Unaudited)
16
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 money it receives. If you
have questions about this report or need additional financial information, contact the City's Chief Financial
Officer at:
City of Tolleson, Arizona
9055 West Van Buren Street
Tolleson, Arizona, 85353
Or visit our website at: https://www.tolleson.az.gov.
17
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
18
19
Financial Section
Government-Wide Financial Statements
20
Governmental
Business-Type
Activities
Activities
Total
Assets
Cash and cash equivalents
46,569,486
$
26,170,109
$
72,739,595
$
Investments
56,154,348
15,333,955
71,488,303
Receivables (net of allowances)
7,845,035
6,372,835
14,217,870
Leases receivable
547,517
-
547,517
Restricted assets
-
754,315
754,315
Prepaid items
11,148
-
11,148
Capital assets:
Not being depreciated/amortized
14,259,010
8,619,917
22,878,927
Being depreciated/amortized (net)
71,855,142
55,276,826
127,131,968
Total assets
197,241,686
112,527,957
309,769,643
Deferred Outflows of Resources
Deferred outflows of resources related to pensions
9,258,790
973,224
10,232,014
Total deferred outflows of resources
9,258,790
973,224
10,232,014
Liabilities
Accounts payable and other current liabilities
2,618,033
2,148,591
4,766,624
Accrued wages and benefits
407,889
91,941
499,830
Intergovernmental payable
-
69,112
69,112
Deposits payable
2,838
166,175
169,013
Interest payable
-
58,789
58,789
Unearned revenue
-
6,114
6,114
Noncurrent liabilities:
Due within one year:
Compensated absences
760,362
236,144
996,506
Subscriptions liability
246,987
-
246,987
Loans payable
-
545,967
545,967
Bonds payable
1,173,000
382,000
1,555,000
Due in more than one year:
Compensated absences
2,407,811
300,545
2,708,356
Subscriptions liability
904,698
-
904,698
Loans payable
-
3,012,633
3,012,633
Bonds payable
12,650,229
2,222,385
14,872,614
Net pension liability
16,859,846
5,065,001
21,924,847
Total liabilities
38,031,693
14,305,397
52,337,090
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
1,142,436
232,137
1,374,573
Deferred inflows of resources related to leases
517,058
-
517,058
Total deferred inflows of resources
1,659,494
232,137
1,891,631
Net Position
Net investment in capital assets
71,139,238
57,908,288
129,047,526
Restricted for:
General government
296,622
-
296,622
Public safety
12,876,448
-
12,876,448
Highways and streets
998,770
-
998,770
Debt service
140,654
579,785
720,439
Grants
300,037
-
300,037
Unrestricted
81,057,520
40,475,574
121,533,094
Total net position
166,809,289
$
98,963,647
$
265,772,936
$
City of Tolleson, Arizona
Statement of Net Position
June 30, 2024
Primary Government
See notes to financial statements
21
Operating
Capital
Charges for
Grants and
Grants and
Governmental
Business-Type
Expenses
Services
Contributions
Contributions
Activities
Activities
Total
Functions/Programs
Primary government:
Governmental activities:
General government
12,285,858
$
667,802
$
322,866
$
-
$
(11,295,190)
$
-
$
(11,295,190)
$
Public safety
18,972,146
1,828,817
283,827
-
(16,859,502)
-
(16,859,502)
Highways and streets
2,636,514
-
560,662
333,577
(1,742,275)
-
(1,742,275)
Culture and recreation
5,470,852
97,115
14,618
-
(5,359,119)
-
(5,359,119)
Economic development
1,768,355
1,339,209
6,502
-
(422,644)
-
(422,644)
Health and welfare
1,081,804
173,392
462,395
-
(446,017)
-
(446,017)
Interest on long-term debt
475,620
-
-
-
(475,620)
-
(475,620)
Total governmental activities
42,691,149
4,106,335
1,650,870
333,577
(36,600,367)
-
(36,600,367)
Business-type activities:
Water
7,439,306
7,893,323
-
-
-
454,017
454,017
Wastewater and sewer
10,750,021
10,783,320
-
2,360,424
-
2,393,723
2,393,723
Sanitation and trash
391,739
459,187
-
-
-
67,448
67,448
Total business-type activities
18,581,066
19,135,830
-
2,360,424
-
2,915,188
2,915,188
Total primary government
61,272,215
$
23,242,165
$
1,650,870
$
2,694,001
$
(36,600,367)
2,915,188
(33,685,179)
General Revenues
Taxes:
Sales tax
51,108,820
-
51,108,820
Property tax
7,296,622
1,167,227
8,463,849
Auto lieu tax
376,427
-
376,427
Franchise tax
54,575
-
54,575
State revenue sharing
1,093,578
-
1,093,578
Urban revenue sharing (unrestricted)
1,923,309
-
1,923,309
Unrestricted investment earnings:
Interest income
2,824,395
1,744,910
4,569,305
Change in the fair value of investments
322,536
175,344
497,880
Gain (loss) on sale of capital assets
-
(25,765)
(25,765)
Miscellaneous
73,205
-
73,205
Transfers (out) in
(3,888)
3,888
-
Total general revenues
65,069,579
3,065,604
68,135,183
Change in net position
28,469,212
5,980,792
34,450,004
Net Position, Beginning
138,340,077
92,982,855
231,322,932
Net Position, Ending
166,809,289
$
98,963,647
$
265,772,936
$
City of Tolleson, Arizona
Statement of Activities
Year Ended June 30, 2024
Program Revenues
Changes in Net Position
Net (Expense) Revenue and
See notes to financial statements
22
23
Financial Section
Governmental Fund Financial Statements
Major Funds
General Fund - This fund is the general operating fund of the City. It accounts for all financial
resources of the City, except those required to be accounted for in other funds.
Public Safety Tax Fund - This fund accounts for the ½ cent sales tax collected to provide for police
and fire services.
Nonmajor Funds
24
Nonmajor
Total
Public Safety
Governmental
Governmental
General
Tax
Funds
Funds
Assets
Cash and cash equivalents
38,040,848
$
7,239,177
$
1,289,461
$
46,569,486
$
Investments
51,173,758
4,980,590
-
56,154,348
Receivables, net:
Accounts receivable
740,059
-
-
740,059
Interest receivable
384,823
37,454
-
422,277
Taxes receivable
51,022
-
29,491
80,513
Intergovernmental receivable
5,612,532
662,065
327,589
6,602,186
Leases receivable
547,517
-
-
547,517
Due from other funds
106,000
-
-
106,000
Prepaids
11,148
-
-
11,148
Total assets
96,667,707
$
12,919,286
$
1,646,541
$
111,233,534
$
Liabilities
Accounts payable
2,476,240
$
94,901
$
46,892
$
2,618,033
$
Accrued wages and benefits
399,109
-
8,780
407,889
Due to other funds
-
-
106,000
106,000
Deposit payable
2,838
-
-
2,838
Total liabilities
2,878,187
94,901
161,672
3,134,760
Deferred Inflows of Resources
Unavailable revenue
472,260
-
45,408
517,668
Deferred inflows of resources
related to leases
517,058
-
-
517,058
Total deferred inflow
of resources
989,318
-
45,408
1,034,726
Fund Balances
Nonspendable:
Prepaid items
11,148
-
-
11,148
Restricted:
General government
296,622
-
-
296,622
Public safety
52,063
12,824,385
-
12,876,448
Highways and streets
-
-
998,770
998,770
Debt service
-
-
140,654
140,654
Grants
-
-
300,037
300,037
Assigned:
General fund reserve (40% of expenditures)
15,704,777
-
-
15,704,777
Subsequent year's budget:
appropriation of fund balance
7,960,381
-
-
7,960,381
Unassigned
68,775,211
-
-
68,775,211
Total fund balances
92,800,202
12,824,385
1,439,461
107,064,048
Total liabilities, deferred
inflows of resources and
fund balances
96,667,707
$
12,919,286
$
1,646,541
$
111,233,534
$
City of Tolleson, Arizona
Balance Sheet
June 30, 2024
Governmental Funds
See notes to financial statements
25
Total Governmental Funds Balances
107,064,048
$
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
145,830,334
$
Accumulated depreciation/amortization
(59,716,182)
86,114,152
Some revenues are unavailable in the governmental fund
financial statements but recognized when earned in the
statement of activities
517,668
Some liabilities, including net pension liabilities, 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 liability
(16,859,846)
Subscription-based information technology arrangements liability
(1,151,685)
Bonds payable
(12,700,000)
Bond premiums
(1,123,229)
Compensated absences
(3,168,173)
(35,002,933)
Deferred outflows and inflows of resources related to pensions
and deferred charges on debt refundings are applicable to future
reporting periods and, therefore, are not reported in the funds.
Deferred outflows of resources related to pensions
9,258,790
Deferred inflows of resources related to pensions
(1,142,436)
8,116,354
Total Net Position of Governmental Activities
166,809,289
$
City of Tolleson, Arizona
Reconciliation of the Balance Sheet to the Statement of Net Position
Governmental Funds
June 30, 2024
See notes to financial statements
26
Nonmajor
Total
Public Safety
Governmental
Governmental
General
Tax
Funds
Funds
Revenues
Taxes:
Sales taxes
42,410,103
$
8,072,833
$
625,884
$
51,108,820
$
Property taxes
5,190,863
-
2,094,509
7,285,372
Franchise taxes
54,575
-
-
54,575
Intergovernmental revenues
3,064,707
-
2,015,530
5,080,237
Fines and forfeitures
188,749
-
-
188,749
Licenses and permits
1,339,209
-
-
1,339,209
Charges for services
2,347,312
28,450
173,392
2,549,154
Rents and royalties
35,852
-
-
35,852
Contributions and donations
56,316
-
-
56,316
Investment earnings:
Interest income
2,471,293
320,216
32,886
2,824,395
Change in the fair value of investments
322,536
-
-
322,536
Other revenues
16,632
-
-
16,632
Total revenues
57,498,147
8,421,499
4,942,201
70,861,847
Expenditures
Current:
General government
10,380,197
-
-
10,380,197
Public safety
13,467,425
5,781,438
459,277
19,708,140
Highways and streets
1,136,003
-
1,206,910
2,342,913
Culture and recreation
4,577,754
-
-
4,577,754
Economic development
1,584,795
-
-
1,584,795
Health and welfare
-
-
1,209,939
1,209,939
Capital outlay
7,723,294
1,626,582
60,813
9,410,689
Debt service:
Principal retirement
373,415
-
2,245,142
2,618,557
Interest
19,059
-
602,535
621,594
Total expenditures
39,261,942
7,408,020
5,784,616
52,454,578
Excess (deficiency) of revenues
over (under) expenditures
18,236,205
1,013,479
(842,415)
18,407,269
Other Financing Sources (Uses)
Subscription-based information
technology arrangements
1,324,675
-
-
1,324,675
Transfers in
-
-
537,328
537,328
Transfers out
(501,597)
-
(39,619)
(541,216)
Total other financing sources
and (uses)
823,078
-
497,709
1,320,787
Net change in fund balances
19,059,283
1,013,479
(344,706)
19,728,056
Fund Balances, Beginning
73,740,919
11,810,906
1,784,167
87,335,992
Fund Balances, Ending
92,800,202
$
12,824,385
$
1,439,461
$
107,064,048
$
City of Tolleson, Arizona
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2024
See notes to financial statements
27
Net Change in Fund Balances - Total Governmental Funds
19,728,056
$
Amounts reported for governmental activities in the
Statement of activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense.
This is the difference between depreciation/amortization expense and
capital outlay in the current period.
Capital outlay
10,625,195
$
Depreciation/amortization expense
(4,194,734)
6,430,461
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.
Amortization of bond premiums and discounts, net
145,974
City pension contributions are reported as expenditures in the governmental
funds when made. However, they are reported as deferred outflows of
resources in the statement of net position because the reported net
pension liability is measured a year before the City's report date.
Pension expense, which is the change in the net pension liability
adjusted for changes in deferred outflows and inflows of resources
related to pensions, is reported in the statement of activities.
City pension contributions
4,652,109
City proportionate share of State's appropriation to EORP
73,205
Pension expense
(3,751,087)
974,227
Long-term debt proceeds provide current financial resources to governmental
funds, but issuing debt instruments increases long-term liabilities in the
statement of net position. The following long-term liabilities were incurred:
Subscription-based information technology arrangements incurred
(1,324,675)
Repayment of long-term debt (e.g., bonds, leases, accounts payable)
principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Principal repaid - bonds
2,245,142
Principal repaid - subscription-based information technology arrangements
373,415
2,618,557
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.
229,196
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.
(332,584)
Change in Net Position of Governmental Activities
28,469,212
$
City of Tolleson, Arizona
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2024
See notes to financial statements
28
29
Financial Section
Proprietary Fund Financial Statements
Enterprise Fund
Water Fund - This fund is used to account for the activities of the City's water utility operations.
Wastewater and Sewer Fund - This fund is used to account for the activities of the City's sewer
utility operations.
Sanitation and Trash Fund - This fund is used to account for the activities of the City's sanitation
and trash utility operations.
30
Nonmajor
Wastewater
Sanitation
Water
and Sewer
and Trash
Total
Assets
Current assets:
Cash and cash equivalents
11,356,571
$
14,008,106
$
805,432
$
26,170,109
$
Investments
7,520,427
7,813,528
-
15,333,955
Receivables (net of allowance):
Accounts receivable
1,253,127
4,851,199
65,324
6,169,650
Interest receivable
56,553
58,757
-
115,310
Taxes receivable
83,421
4,454
-
87,875
Restricted assets
174,530
579,785
-
754,315
Total current assets
20,444,629
27,315,829
870,756
48,631,214
Noncurrent Assets
Capital assets:
Not being depreciated/amortized
4,712,906
3,907,011
-
8,619,917
Being depreciated/amortized, net
8,236,227
47,040,599
-
55,276,826
Total noncurrent assets
12,949,133
50,947,610
-
63,896,743
Total assets
33,393,762
78,263,439
870,756
112,527,957
Deferred Outflows of Resources
Deferred outflows of resources related
to pensions
290,078
636,429
46,717
973,224
Liabilities
Current liabilities:
Accounts payable
756,882
1,389,513
2,196
2,148,591
Accrued wages and benefits
30,405
60,906
630
91,941
Interest payable
-
58,789
-
58,789
Intergovernmental payable
69,112
-
-
69,112
Customer deposits payable
166,175
-
-
166,175
Unearned revenue
3,057
3,057
-
6,114
Compensated absences
65,846
170,298
-
236,144
Loans payable, current portion
-
545,967
-
545,967
Bonds payable, current portion
335,000
47,000
-
382,000
Total current liabilities
1,426,477
2,275,530
2,826
3,704,833
Noncurrent liabilities:
Compensated absences, net of current portion
83,803
216,742
-
300,545
Loans payable, net of current portion
-
3,012,633
-
3,012,633
Bonds payable, net of current portion
1,987,057
235,328
-
2,222,385
Net pension liability
1,437,283
3,277,864
349,854
5,065,001
Total noncurrent liabilities
3,508,143
6,742,567
349,854
10,600,564
Total liabilities
4,934,620
9,018,097
352,680
14,305,397
Deferred Inflows of Resources
Deferred inflows of resources related
to pensions
80,799
117,287
34,051
232,137
Net Position
Net investment in capital assets
10,801,606
47,106,682
-
57,908,288
Restricted for debt service
-
579,785
-
579,785
Unrestricted
17,866,815
22,078,017
530,742
40,475,574
Total net position
28,668,421
$
69,764,484
$
530,742
$
98,963,647
$
Business-Type Activities-Enterprise Funds
City of Tolleson, Arizona
Statement of Net Position
Proprietary Funds
June 30, 2024
See notes to financial statements
31
Nonmajor
Wastewater
Sanitation
Water
and Sewer
and Trash
Total
Operating Revenues
Charges for services
7,893,323
$
10,783,320
$
459,187
$
19,135,830
$
Total operating revenue
7,893,323
10,783,320
459,187
19,135,830
Operating Expenses
Salaries, wages and benefits
2,020,749
4,154,733
54,226
6,229,708
Contractual services, materials and supplies
4,698,212
4,342,252
337,513
9,377,977
Depreciation
667,955
2,131,609
-
2,799,564
Total operating expenses
7,386,916
10,628,594
391,739
18,407,249
Operating income
506,407
154,726
67,448
728,581
Nonoperating Revenues (Expenses)
Property taxes
752,987
414,240
-
1,167,227
Interest income
881,182
845,679
18,049
1,744,910
Change in the fair value of investments
84,472
90,872
-
175,344
Interest expense
(52,390)
(121,427)
-
(173,817)
Loss on disposal of assets
-
(25,765)
-
(25,765)
Total nonoperating
revenues (expenses)
1,666,251
1,203,599
18,049
2,887,899
Income before capital
contributions and transfers
2,172,658
1,358,325
85,497
3,616,480
Capital Contributions
-
2,360,424
-
2,360,424
Transfer In
474
171,294
-
171,768
Transfers Out
-
(167,880)
-
(167,880)
Change in net position
2,173,132
3,722,163
85,497
5,980,792
Net Position, Beginning
26,495,289
66,042,321
445,245
92,982,855
Net Position, Ending
28,668,421
$
69,764,484
$
530,742
$
98,963,647
$
Business-Type Activities - Enterprise Funds
City of Tolleson, Arizona
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
Year Ended June 30, 2024
See notes to financial statements
32
Nonmajor
Wastewater
Sanitation
Water
and Sewer
and Trash
Total
Cash Flows From Operating Activities
Cash received from customers, service fees
7,738,896
$
10,249,644
$
460,833
$
18,449,373
$
Payments for employee wages and benefits
(1,953,997)
(4,004,936)
(51,006)
(6,009,939)
Payments to suppliers
(4,314,338)
(3,979,967)
(335,409)
(8,629,714)
Net cash provided by operating
activities
1,470,561
2,264,741
74,418
3,809,720
Cash Flows From Noncapital
Financing Activities
Cash received from property taxes
747,340
416,164
-
1,163,504
Cash transferred from other funds
474
171,294
-
171,768
Cash transferred to other funds
-
(167,880)
-
(167,880)
Net cash provided by noncapital
financing activities
747,814
419,578
-
1,167,392
Cash Flows From Capital and
Related Financing Activities
Purchase of capital assets
(4,565,971)
(4,205,844)
-
(8,771,815)
Capital contributions
-
2,360,424
-
2,360,424
Principal paid on long term debt
(715,858)
(572,504)
-
(1,288,362)
Interest paid on long-term debt
(85,361)
(134,624)
-
(219,985)
Net cash (used in) provided by
capital and related financing activities
(5,367,190)
(2,552,548)
-
(7,919,738)
Cash Flows From Investing Activities
Interest received on investments
850,232
807,818
18,049
1,676,099
Purchase of investments from sale and
maturities of investments
(2,660,828)
(2,669,312)
-
(5,330,140)
Net cash (used in) provided by
investing activities
(1,810,596)
(1,861,494)
18,049
(3,654,041)
Net change in cash and
cash equivalents
(4,959,411)
(1,729,723)
92,467
(6,596,667)
Cash and Cash Equivalents, Beginning
16,490,512
16,317,614
712,965
33,521,091
Cash and Cash Equivalents, Ending
11,531,101
$
14,587,891
$
805,432
$
26,924,424
$
Business-Type Activities - Enterprise Funds
City of Tolleson, Arizona
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
See notes to financial statements
33
Nonmajor
Wastewater
Sanitation
Water
and Sewer
and Trash
Total
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Net operating income (loss)
506,407
$
154,726
$
67,448
$
728,581
$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation expense
667,955
2,131,618
-
2,799,573
Changes in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:
(Increase)/decrease in:
Accounts receivable
(162,872)
(534,481)
1,646
(695,707)
Deferred outflows of resources related
to pensions
(82,777)
(169,251)
(1,495)
(253,523)
Increase/(decrease) in:
Accounts payable
374,694
362,276
2,104
739,074
Accrued wages and benefits
(8,648)
(21,361)
(453)
(30,462)
Accrued liabilities
9,180
-
-
9,180
Customer deposits
7,850
-
-
7,850
Unearned revenue
595
805
-
1,400
Compensated absences
9,359
29,636
-
38,995
Net pension liability
138,304
288,816
4,803
431,923
Deferred inflows of resources related
to pensions
10,514
21,957
365
32,836
Net cash provided by
operating activities
1,470,561
$
2,264,741
$
74,418
$
3,809,720
$
Noncash Investing, Capital and Financing Activities
Disposal of assets
-
$
25,765
$
-
$
25,765
$
Change in the fair value of investments
84,472
$
90,872
$
-
$
175,344
$
Amortization of bond premium
32,971
$
4,466
$
-
$
37,437
$
Reconciliation of Cash, Cash Equivalents and
Investments to the Statement of Net Position
Cash and cash equivalents
11,356,571
$
14,008,106
$
805,432
$
26,170,109
$
Restricted assets
174,530
579,785
-
754,315
Total cash, cash equivalents and investments
11,531,101
$
14,587,891
$
805,432
$
26,924,424
$
Business-Type Activities - Enterprise Funds
City of Tolleson, Arizona
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
See notes to financial statements
34
35
Financial Section
Notes to Financial Statements
36
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
37
1.
Summary of Significant Accounting Policies
The accompanying financial statements of the City of Tolleson, Arizona (the City) have been prepared in
conformity with accounting principles generally accepted in the United States of America applicable to
governmental units adopted by the Governmental Accounting Standards Board (GASB). A summary of
the City's more significant accounting policies follows.
Reporting Entity
The City of Tolleson, Arizona is a municipal government that is governed by an elected mayor,
vice-mayor and five-member governing council (council). The accompanying financial statements
present the City and its component units, entities for which the City is considered to be financially
accountable. Blended component units are, in substance, part of the primary government's
operations, even though they are legally separate entities. Thus, blended component units are
appropriately presented as funds of the primary government. Each discretely presented component
unit is reported in a separate column in the government-wide financial statements to emphasize that it
is legally separate from the City.
There are no discretely presented component units and no blended component units.
Basis of Presentation - 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. 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.
While separate government-wide and fund financial statements are presented, they are interrelated.
The governmental activities column incorporates data from governmental funds, while business-type
activities incorporate data from the City's enterprise funds. Separate financial statements are provided
for governmental funds and proprietary funds.
Interfund services provided and used are not eliminated in the process of consolidation for the
government-wide financial statements.
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 required to be accounted for in another fund.
The Public Safety Tax Special Revenue Fund accounts for the government's sales tax revenues
set aside for public safety purposes and related expenditures.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
38
The City reports the following major proprietary funds:
The Water Fund accounts for the activities of pumping, treating and distribution of water.
The Wastewater and Sewer Fund accounts for the activities of wastewater collection and
treatment.
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 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 and proprietary fund 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. Under this method, revenues are
recognized when they become both measurable and available. The City considers all revenues
reported in the governmental funds to be available if the revenues are collected within 60 days after
year-end. The City's major revenue sources that are susceptible to accrual are property taxes, special
assessments, intergovernmental, charges for services, and investment earnings. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on general long-
term debt, claims and judgments, compensated absences, pollution remediation obligations and
asset retirement obligations, which are recognized as expenditures to the extent they are due and
payable. General capital asset acquisitions are reported as expenditures in governmental funds.
Issuances of general long-term debt and acquisitions under lease contracts and subscription-based
information technology arrangements are reported as other financing sources.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
39
Sales taxes, franchise taxes, intergovernmental grants and aid 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.
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.
Cash and investments are pooled except for funds required to be held by fiscal agents or restricted
under provisions of bond indentures. Interest earned from investments purchased with such pooled
monies is allocated to each of the funds based on the average daily cash balances. State statutes
authorize the City to invest in obligations of the U.S. Treasury and U.S. agencies, certificates of the
deposit in eligible depositories, repurchase agreements, obligations of the State of Arizona or any of
its counties or incorporated cities, towns, or duly organized school districts, improvement districts in
this state and the State Treasurer's Local Government Investment Pool. Investments are stated at fair
value.
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 proprietary funds are shown net of an allowance for doubtful accounts.
Inventories and Prepaid Items
Purchases of inventory items are recorded at the time of purchase as expenditures in the funds from
which the purchases were made; and because the amounts on hand at June 30, 2024, were
immaterial, they are not included in the balance sheet.
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.
Restricted Assets
Certain proceeds of the City's bonds and loans are classified as restricted assets on the statement of
net position because their use is limited by applicable bond or loan covenants.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
40
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 or subscription
based contracts, are reported in the applicable governmental or business-type activity columns in the
government-wide financial statements and in the proprietary fund 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 actual cost (or historical cost or
estimated historical cost if historical records are not available). Donated capital assets are recorded at
acquisition value. 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. Land, construction in progress, and water
rights are not depreciated/amortized. The other property, plant and equipment are
depreciated/amortized using the straight-line method over the following estimated useful lives:
Years
Building and improvements
40
Water plant
50
Sewer plant
50
Furniture, equipment and vehicles
5 - 20
Infrastructure
50
Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life
of the underlying asset, unless the lease contains a purchase option that the City is reasonably
certain of being exercised―then the lease asset is amortized over the useful life of the underlying
asset.
Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or
the useful life of the underlying information-technology assets.
Deferred Outflows/Inflows of Resources
The statement of net position and balance sheet include separate sections for deferred outflows of
resources and deferred inflows of resources. Deferred outflows of resources represent a consumption
of net assets that applies to future periods that will be recognized as an expense or expenditure in
future periods. Deferred inflows of resources represent an acquisition of net assets or fund balance
that applies to future periods and will be recognized as a revenue in future periods.
Postemployment Benefits
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the pension plan's
fiduciary net position of the Arizona State Retirement System (ASRS), Elected Officials Retirement
Plan (EORP), and the 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, EORP 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.
ASRS, EORP and PSPRS net OPEB assets/liabilities have not been recorded, or further disclosed, at
June 30, 2024 in accordance with GASB Statement 75, due to the relative insignificance to the City's
financial statements.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
41
Leases and Subscription-Based Information Technology Arrangements
Leases
Lessee - As lessee, the City recognizes lease liabilities with an initial, individual value of
$50,000 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.
Lessor - As lessor, the City recognizes lease receivables with an initial, individual value of
$50,000 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 as described above.
At the commencement of the lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Subscription-Based Information Technology Arrangements
The City recognizes subscription liabilities with an initial, individual value of $25,000 or more.
The City uses its estimated incremental borrowing rate to measure subscription liabilities unless
it can readily determine the interest rate implicit in the arrangement. The City's estimated
incremental borrowing rate is calculated as described above.
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.
The Net Investment in Capital Assets on the Statement of Net Position are Calculated as Follows:
Governmental
Activities
Business-Type
Activities
Net Investment in capital asset:
Nondepreciable capital assets
$
14,259,010
$
8,619,917
Other capital and right-of-use, net of accumulated
depreciation/amortization
71,855,142
55,276,826
Plus restricted cash for capital projects
-
174,530
Less loans-payable outstanding
-
3,558,600
Less long-term debt outstanding
13,823,229
2,604,385
Less subscription liability outstanding
1,151,685
-
Total
$
71,139,238
$
57,908,288
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
42
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 City Finance Director is
authorized to assign amounts to a specific purpose in accordance with the City's budget policy. 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.
The General Fund has assigned funds consisting of a stabilization arrangement in the amount of
$22,798,620. The stabilization arrangement is used to set aside resources for use in response to
emergency contingency concerns. The amount of the Stabilization Arrangement for contingencies is
equal to 20-40% of General Fund operating expenditures.
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.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
43
Property Taxes
Property taxes are levied by the City and collected by the Maricopa County Treasurer. 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 liability for compensated absences reported in the government-wide statements consists of
unpaid, accumulated leave balances. The liability has been calculated using the vesting method, in
which leave amounts for both employees who currently are eligible to receive termination payments
and other employees who are expected to become eligible in the future to receive such payments
upon termination. For governmental funds, amounts of vested or accumulated vacation and sick
leave that are not expected to be liquidated with expendable available financial resources are
reported as liabilities in the government-wide statement of net position and as expenses 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 vacation and sick leave in the proprietary fund are recorded as
an expense and a liability of that fund as the benefits accrue to the employees and are thus recorded
in both the government-wide financial statements and the individual fund financial statements.
Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating revenues
of proprietary funds are charges to customers for sales and services. 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.
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.
Expenditures Over Appropriations
Expenditures may not legally exceed budgeted appropriations at the department level. The individual
schedule of revenues, expenditures and changes in fund balances – budget and actual reports found
in the required supplementary information and the other supplementary information present all of the
departments which incurred an excess of expenditures/expenses over appropriations for the year
ended June 30, 2024, if any.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
44
Effect of New Accounting Standards on Current Period Financial Statements
The Governmental Accounting Standards Board (GASB) has approved the following:
Statement No. 100, Accounting Changes and Error Corrections - an Amendment of
GASB Statement No. 62
Statement No. 101, Compensated Absences
Statement No. 102, Certain Risk Disclosures
When they become effective, application of these standards may restate portions of the financial
statements. The City continues to monitor and evaluate the impact of these new standards, and any
future accounting standards issued by GASB, to ensure compliance and accurate financial reporting
on its future financial statements. The adoption of these standards is expected to enhance the
transparency and comparability of the City's financial reporting. The City will provide additional
disclosures in the financial statements for the periods in which these standards become effective.
2.
Cash and Investments
The following table summarizes the City's cash and investments at June 30, 2024:
Governmental
Activities
Business-Type
Activities
Total
Cash and cash equivalents
$
46,569,486
$
26,170,109
$
72,739,595
Investments
56,154,348
15,333,955
71,488,303
Restricted assets
-
754,315
754,315
Total
$
102,723,834
$
42,258,379
$
144,982,213
Cash and Cash Equivalents
Cash on hand - At June 30, 2024, the City had $3,000 of cash on hand.
Cash in bank - At June 30, 2024, the carrying amount of the City's cash in bank totaled $30,263,989
and the bank balance was $30,361,860. Of the bank balance, $250,000 was covered by Federal
Depository Insurance and $30,111,860 was covered by collateral held in the pledging bank's trust
department not in the City's name.
Local government Investment pool - The City invests in the Local Government Investment Pool 5
(LGIP), an investment pool managed by the State Treasurer's Office that allows governments within
the State to pool their funds for investment purposes. The State Board of Investment provides
oversight for the State Treasurer's investment pools. Investments in the State Treasurer's investment
pools are valued at the pool's share price multiplied by the number of shares the City held. The fair
value of a participant's position in the pools approximates the value of that participant's pool shares.
Participants in the pool are not required to categorize the value of shares in accordance with the fair
value hierarchy. The LGIP is registered with the Securities Exchange Commission under the 1940
Investment Advisors Act and is rated by Standard & Poors with AAAf/S1+. The Arizona State
Treasurer issues a publicly available financial report that includes financial statements and required
supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700
West Washington, Phoenix, Arizona 85007.
Funds held in the State Treasurer's Local Government Investment Pool represent a proportionate
interest in the pool's portfolio; however, the City's portion is not identified with specific investments
and is not subject to custodial credit risk. At June 30, 2024, the City's unrestricted funds invested with
the State Treasurer totaled $42,378,058.
PFM Government Money Market Fund - At June 30, 2024, the carrying amount of the City's cash in
the PFM money market fund totaled $94,548 and was covered by Federal Depository Insurance.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
45
Investments
The City purchases investment securities outside of the LGIP, through a third-party investment
advisor. At June 30, 2024, the fair value of the investments totaled $71,488,303. Interest Rate Risk,
Credit Risk, Concentration of Credit Risk and Fair Value Measurement are discussed on the following
pages.
Restricted Assets
At June 30, 2024, the City had restricted cash and cash equivalents of $754,315 which was restricted
for debt payments.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. Information about the sensitivity of the fair values of the
City's investments to market interest rate fluctuations is provided by the following table that shows the
distribution of City's investments by maturity:
Remaining Maturity (in Months)
Investment Type
Amount
12 Months or
Less
13 to 24
Months
25 to 60
Months
More Than
60 Months
U.S. Treasury notes
$
56,176,279
$
4,004,500
$
15,866,441
$
36,305,338
$
-
African Development Bank
Note
1,208,985
-
-
1,208,985
Inter-American Development
Bank Note
744,542
-
-
744,542
-
Asian Development Bank Note
1,227,514
303,972
923,542
-
Federal Agency Collateralized
Mortgage Obligations
12,130,984
1,132,766
849,670
10,148,548
-
PFM Government Money
Market Fund
94,548
94,548
-
-
-
State Investment Pool (LGIP)
43,132,373
43,132,373
-
-
-
Total
$ 114,715,225
$
48,668,159
$
17,639,653
$
48,407,413
$
-
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The City does not have a formal investment policy regarding credit risk.
However, the City is prohibited by State law from investing in investments other than obligations of
the U.S. Treasury and U.S. agencies, certificates of deposit in eligible depositories, repurchase
agreements, obligations of the State of Arizona or any of its counties or incorporated cities, towns or
duly organized school districts, improvement districts in this State and the State Treasurer's Local
Investment Pool. Presented below is the actual rating as of year-end for each investment type.
Investment Type
Amount
Rating Agency
Rating
U.S. Treasury notes
$
56,176,279
Moody's
Aaa
African Development Bank Note
1,208,985
Moody's
Aaa
Inter-American Development Bank Note
744,542
Moody's
Aaa
Asian Development Bank Note
1,227,514
Moody's
Aa1
Federal Agency Collateralized Mortgage Obligations
12,130,984
Moody's
Aaa
PFM Government Money Market Fund
94,548
Unrated
State Investment Pool (LGIP)
43,132,373
Standard and Poors
AAAf/S1+
Total
$
114,715,225
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
46
Concentration of Credit Risk
At June 30, 2024, the City's investments are included as follows:
Issuer
Reported
Amount
Concentration
U.S. Treasury notes
$
56,176,279
49.0 %
African American Bank Note
1,208,985
1.1
Inter-American Development Bank Note
744,542
0.6
Asian Development Bank Note
1,227,514
1.1
Federal Agency Collateralized Mortgage Obligations
12,130,984
10.6
PFM Government Money Market Fund
94,548
0.1
State Investment Pool (LGIP)
43,132,373
37.6
Total
$
114,715,225
Fair Value Measurement
Investments are measured at fair value. Fair value measurements are categorized based on the
valuation inputs used to measure an asset's fair value: 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. Investments' fair value measurements are as follows at
June 30, 2024:
Investments by Fair Value
Level
Total
Level 1
Level 2
Level 3
U.S. Treasury notes
$
56,176,278
$
-
$
56,176,278
$
-
African American Bank Note
1,208,985
1,208,985
Inter-American Development
Bank Note
744,542
-
744,542
-
Asian Development Bank Note
1,227,514
-
1,227,514
-
Federal Agency Collateralized
Mortgage Obligations
12,130,984
-
12,130,984
-
Total investments by
fair value
$
71,488,303
$
-
$
71,488,303
$
-
External Investment Pool
Measured at Fair Value
State Investment Pool (LGIP)
$
43,132,373
Total measured at
fair value
$
114,620,677
Investments Measured at
Amortized Costs
PFM Government Money
Market Fund
$
94,548
Total investments
$
114,715,225
Investments categorized as Level 2 are valued using a matrix pricing technique. Matrix pricing is a
method of supplying system-generated prices to assets using yield curves that are defined by SEI
Investments Company. Investments in the State Treasurer's investment pools are valued at the pool's
share price multiplied by the number of shares the City held. The fair value of a participant's position
in the pool approximates the value of that participant's pool shares. The State Board of Investment
provides oversight for the State Treasurer's investment pools.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
47
3.
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:
General
Public Safety
Tax
Nonmajor
Government
Funds
Total
Government
Funds
Receivables:
Accounts receivable
$
740,059
$
-
$
-
$
740,059
Interest receivable
384,823
37,454
-
422,277
Taxes receivable
51,022
-
29,491
80,513
Intergovernmental receivable
5,612,532
662,065
327,589
6,602,186
Leases receivable
547,517
-
-
547,517
Total
$
7,335,953
$
699,519
$
357,080
$
8,392,552
Accounts receivables in the proprietary funds are for service billings and are shown net of no allowance
for doubtful accounts.
Water
Fund
Wastewater and
Sewer Fund
Sanitation and
Trash Fund
Total
Enterprise
Receivables:
Accounts receivable
$
1,322,020
$
4,864,534
$
70,416
$
6,256,970
Interest receivable
56,553
58,757
-
115,310
Taxes receivable
83,421
4,454
-
87,875
Total receivable
1,461,994
4,927,745
70,416
6,460,155
Less allowance for doubtful
accounts
(68,893)
(13,335)
(5,092)
(87,320)
Total
$
1,393,101
$
4,914,410
$
65,324
$
6,372,835
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
48
4.
Capital Assets
The following table summarizes the changes to capital assets for governmental activities during the year:
Beginning
Balance
Increases
Decreases
Ending
Balance
Governmental activities:
Capital assets, not being
depreciated/amortized:
Land
$
7,608,899
$
5,009,681
$
-
$
12,618,580
Construction in progress
364,166
1,276,264
-
1,640,430
Total capital assets
not being
depreciated/amortized
7,973,065
6,285,945
-
14,259,010
Capital assets, being
depreciated/amortized:
Buildings
46,802,718
-
-
46,802,718
Furniture, equipment and
vehicles
18,201,847
2,321,498
(34,279)
20,489,066
Improvements
62,092,645
684,202
-
62,776,847
Intangibles:
Right-to-use subscription
assets
332,328
1,333,550
(163,185)
1,502,693
Total capital assets being
depreciated/amortized
127,429,538
4,339,250
(197,464)
131,571,324
Less accumulated
depreciation/amortization for:
Buildings
(8,149,516)
(1,206,595)
-
(9,356,111)
Furniture, equipment and
vehicles
(14,671,710)
(1,565,961)
34,279
(16,203,392)
Improvements
(32,763,153)
(1,145,459)
-
(33,908,612)
Intangibles:
Right-to-use subscription
assets
(134,533)
(276,719)
163,185
(248,067)
Total accumulated
depreciation/
amortization
(55,718,912)
(4,194,734)
197,464
(59,716,182)
Total capital assets,
being depreciated/
amortized, net
71,710,626
144,516
-
71,855,142
Governmental activities
capital assets, net
$
79,683,691
$
6,430,461
$
-
$
86,114,152
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
49
Depreciation/amortization expense was charged to the functions/programs of the City as follows:
Governmental activities:
General government
$
1,354,807
Public safety
1,244,614
Highways and streets
954,178
Culture and recreation
388,313
Economic development
156,980
Health and welfare
95,842
Total depreciation/amortization expense
$
4,194,734
The following table summarizes the changes to capital assets for business-type activities during the year.
Beginning
Balance
Increase
Decreases
Ending
Balance
Business-type activities:
Capital assets, not being
depreciated/amortized:
Land
$
4,034,932
$
3,012,248
$
-
$
7,047,180
Construction in progress
594,719
1,504,883
(526,865)
1,572,737
Total capital assets
not being
depreciated/
amortized
4,629,651
4,517,131
(526,865)
8,619,917
Capital assets, being
depreciated/amortized:
Buildings
42,622,575
-
-
42,622,575
Improvements other than
buildings
18,732,743
1,420,360
-
20,153,103
Machinery and equipment
46,984,976
3,119,443
-
50,104,419
Vehicles
1,990,145
241,746
(25,765)
2,206,126
Total capital assets
being depreciated/
amortized
110,330,439
4,781,549
(25,765)
115,086,223
Less accumulated
depreciation/amortization
for:
Buildings
(18,849,643)
(830,354)
-
(19,679,997)
Improvements other than
buildings
(9,119,349)
(406,659)
-
(9,526,008)
Machinery and equipment
(27,593,576)
(1,470,517)
-
(29,064,093)
Vehicles
(1,447,256)
(92,043)
-
(1,539,299)
Total accumulated
depreciation/
amortization
(57,009,824)
(2,799,573)
-
(59,809,397)
Total capital assets,
being depreciated/
amortized, net
53,320,615
1,981,976
(25,765)
55,276,826
Business-type activities
capital assets, net
$
57,950,266
$
6,499,107
$
(552,630)
$
63,896,743
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
50
Depreciation/amortization expense was charged to the functions/programs of the City as follows:
Business-type activities:
Wastewater and sewer
$
2,131,618
Water
667,955
Sanitation and trash
-
Total depreciation/amortization expense
$
2,799,573
5.
Leases
As of June 30, 2024, the City is reporting leases receivable of $547,517 and deferred inflows related to
leases of $517,058. For the fiscal year 2024 , the City reported lease revenue of $59,082 and interest
revenue of $12,708, 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
Receivable
Deferred
Inflows
Related to
Leases
Lease
Revenue
Lease
Interest
Revenue
Maskadores Building Lease
$
147,166
$
135,975
$
20,806
$
1,960
Verizon
278,667
259,456
9,840
9,960
American Tower
121,684
121,627
28,436
788
Total
$
547,517
$
517,058
$
59,082
$
12,708
The City's incremental borrowing rate used in each of the below leases is based upon the year they were
implemented. Below is the details of each lease.
Maskadores Building Lease
On February 1, 2024 the City renewed their five year lease as Lessor for the use of a building.
The lessee has one extension option for an additional five years and the City is reasonably certain
that the lessee with renew the lease. The lessee is required to make monthly fixed payments of
$2,900. The lease has an interest rate of 3.5%. Based on this agreement, the City is receiving
payments through 2029.
Verizon Lease
On April 28, 2015, the City entered into a five year lease as Lessor for the use of land for a wireless
tower. The lessee has three extension options, each for five years and the City is reasonably certain
that the lessee with renew the lease for each additional term. The lessee is required to make monthly
fixed payments of $1,650. The lease has an interest rate of 3.5%. Based on this agreement, the City
is receiving payments through 2040.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
51
American Tower Lease
In of December 1980, the City entered into a five year lease as Lessor for the use of land for a
wireless tower. The lessee has eight extension options, each for five years and the City is reasonably
certain that the lessee with renew the lease for each additional term. The lessee is required to make
monthly fixed payments of $2,248. The lease has an interest rate of 3.5%. Based on this agreement,
the City is receiving payments through 2029.
Future payments due to the City are as follows for the years ending June 30:
Governmental Activities
Principal
Receipts
Interest
Receipts
Total
Receipts
Fiscal years ending June 30:
2025
$
63,404
$
18,172
$
81,576
2026
65,659
15,917
81,576
2027
70,006
13,550
83,556
2028
72,496
11,060
83,556
2029
58,242
8,566
66,808
2030 - 2034
84,022
31,412
115,434
2035 - 2039
112,636
14,342
126,978
2040
21,052
348
21,400
Total
$
547,517
$
113,367
$
660,884
6.
Unavailable Revenue and Unearned Revenue
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
report unearned revenue in connection with resources that have been received, but not yet earned. At the
end of the current fiscal year, the various components of deferred inflows of resources and unearned
revenue reported in the governmental funds were as follows:
Unavailable
Revenue
General Fund:
Taxes
$
34,150
Grants
438,110
Nonmajor Fund:
Taxes
20,236
Grants
25,172
Total
$
517,668
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
52
7.
Long-Term Debt
The following is a summary of changes in long-term obligations for the year ended June 30, 2024:
Balance,
June 30, 2023
Additions
Retirements
Balance,
June 30, 2024
Due Within
One Year
Governmental activities:
Bonds payable:
Public, general obligation
bonds
$
10,474,142
$
-
$
(1,574,142)
$
8,900,000
$
475,000
Public, general obligation
bonds, refunding
1,216,000
-
(176,000)
1,040,000
188,000
Public, revenue bonds,
refunding
3,255,000
-
(495,000)
2,760,000
510,000
Bond premiums
1,269,203
-
(145,974)
1,123,229
-
Total bonds payable
16,214,345
-
(2,391,116)
13,823,229
1,173,000
Compensated absences
2,835,587
1,787,062
(1,454,476)
3,168,173
760,362
Subscription liabilities
200,425
1,324,675
(373,415)
1,151,685
246,987
Net pension liability
16,500,897
4,650,066
(4,291,117)
16,859,846
-
Total other long-term
debt
19,536,909
7,761,803
(6,119,008)
21,179,704
1,007,349
Total governmental
activities
$
35,751,254
$
7,761,803
$
(8,510,124)
$
35,002,933
$
2,180,349
Business-type activities:
Bonds payable:
Public, general obligation
bonds
$
2,880,858
$
-
$
(715,858)
$
2,165,000
$
335,000
Public, general obligation
bonds, refunding
304,000
-
(44,000)
260,000
47,000
Bond premiums
216,822
-
(37,437)
179,385
-
Total bonds payable
3,401,680
-
(797,295)
2,604,385
382,000
Loans payable
4,087,105
-
(528,505)
3,558,600
545,967
Compensated absences
497,694
323,661
(284,666)
536,689
236,144
Net pension liability
4,633,078
431,923
-
5,065,001
-
Total other long-term
debt
9,217,877
755,584
(813,171)
9,160,290
782,111
Total business-type
activities
$
12,619,557
$
755,584
$
(1,610,466)
$
11,764,675
$
1,164,111
Total long-term
liabilities
$
48,370,811
$
8,517,387
$
(10,120,590)
$
46,767,608
$
3,344,460
Generally, for governmental activities, compensated absences, developer agreement payable and net
pension liabilities are liquidated by the General Fund.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
53
The governmental activities debt service requirements for the City's bonds payable are as follows:
General Obligation
Bonds
General Obligation Bonds -
Refunding
Principal
Interest
Principal
Interest
Fiscal years ending June 30:
2025
$
475,000
$
382,250
$
188,000
$
26,230
2026
500,000
358,500
196,000
22,470
2027
525,000
333,500
208,000
14,630
2026
550,000
307,250
220,000
8,390
2029
575,000
279,750
228,000
3,990
2030 – 2034
3,225,000
1,014,750
-
-
2035 – 2039
3,050,000
310,000
-
-
Total
$
8,900,000
$
2,986,000
$
1,040,000
$
75,710
Revenue Bonds - Refunding
Total Governmental Activities
Principal
Interest
Principal
Interest
Fiscal years ending June 30:
2025
$
510,000
$
110,400
$
1,173,000
$
518,880
2026
530,000
90,000
1,226,000
470,970
2027
550,000
68,800
1,283,000
416,930
2028
570,000
46,800
1,340,000
362,440
2029
600,000
24,000
1,403,000
307,740
2030 - 2034
-
-
3,225,000
1,014,750
2035 - 2039
-
-
3,050,000
310,000
Total
$
2,760,000
$
340,000
$
12,700,000
$
3,401,710
The business-type activities debt service requirements for the City's bonds and loans payable are as
follows:
General Obligation
Bonds
General Obligation Bonds –
Refunding
Principal
Interest
Principal
Interest
Fiscal years ending June 30:
2025
$
335,000
$
56,725
$
47,000
$
6,558
2026
345,000
50,025
49,000
5,618
2027
360,000
36,225
52,000
3,658
2028
370,000
25,425
55,000
2,098
2029
370,000
18,025
57,000
995
2030 - 2034
385,000
11,550
-
-
Total
$
2,165,000
$
197,975
$
260,000
$
18,927
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
54
Loans Payable
Total Business-Type Activities
Principal
Interest
Principal
Interest
Fiscal years ending June 30:
2025
$
545,967
$
99,543
$
927,967
$
162,826
2026
564,005
80,902
958,005
136,545
2027
582,640
61,652
994,640
101,535
2028
601,891
41,765
1,026,891
69,288
2029
621,777
21,222
1,048,777
40,242
2030 - 2034
642,320
1,027,320
11,550
Total
$
3,558,600
$
305,084
$
5,983,600
$
521,986
The following is a listing of loans and bonds payable outstanding as of June 30, 2024:
Balance,
June 30, 2024
Due Within
One Year
Loans payable:
Water Infrastructure Finance Authority of Arizona (WIFA)
General Obligation Loan, issued $5,600,000, due in
semi-annual variable principal and interest installments,
bearing interest at 3.304%, maturing July 1, 2029.
Payable with revenues from levied ad valorem taxes.
$
2,075,850
$
318,481
Water Infrastructure Finance Authority of Arizona (WIFA)
Revenue Loan, issued $4,000,000, due in semi-annual
variable principal and interest installments, bearing interest
at 3.304%, maturing July 1, 2029. Payable with sewer utility
revenues.
1,482,750
227,486
Total loans payable
$
3,558,600
$
545,967
Bonds payable:
Pledge Revenue Refunding Obligations, Series 2020, issued
$4,605,000, due in annual principal and semi-annual interest
installments ranging from $616,800 to $625,200, bearing
interest at 4.0%, maturing on July 1, 2029. Revenue bonds
are repaid from City and State-shared sales tax revenue.
The reacquisition price exceeded the net carrying amount of
the old debt and was expensed to interest expense due to its
relative significance to the City's Statements. The refunding
reduced its total debt service payments by $777,415 and to
obtain an economic gain (difference between the present
values of the debt service payments on the old and new
debt) of $718,941.
$
2,760,000
$
510,000
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
55
Balance,
June 30, 2024
Due Within
One Year
General Obligation Bonds and General Obligation Refunding
Bonds, Series 2020, issued $3,820,000 in general obligation
bonds and $2,665,000 in general obligation refunding bonds,
due in annual principal and semi-annual installments ranging
from $253,888 to $820,704, bearing interest at 1.75% to
4.00%, maturing July 1, 2030. The City issued the general
obligation bonds for capital infrastructure. The City repays
general obligation bonds from voter-approved property
taxes. Of the general obligation bond amounts originally
authorized, $45,120,000 remain unissued. The reacquisition
price of the refunding bonds exceeded the net carrying
amount of the old debt and was expensed to interest
expense due to its relative significance to the City's
Statements. The refunding reduced its total debt service
payments by $307,306 and to obtain an economic gain
(difference between the present values of the debt service
payments on the old and new debt) of $291,060.
$
3,465,000
$
570,000
General Obligation Bonds, Series 2019, issued $10,850,000,
due in annual principal payments beginning July 1, 2020
and semi-annual interest installments beginning July 1, 2019
ranging from $162,342 to $858,750, bearing interest at
3.0% to 4.0%, maturing July 1, 2038. The City issued the
general obligation bonds for capital infrastructure. The City
repays general obligation bonds from voter-approved
property taxes.
8,900,000
475,000
Total bonds payable
$
15,125,000
$
1,555,000
Total loans and bonds payable
$
18,683,600
$
2,100,967
Legal Debt Margin
The City is subject to a debt limit that is 26% of the net secondary assessed valuation of taxable real
property. At June 30, 2024, that amount was $117,214,618. As of June 30, 2024, the total
outstanding debt applicable to the limit was $15,427,533 which is 13.16% of the total debt limit.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
56
Subscription-Based Information Technology Arrangements (SBITAs)
The City has obtained the right to use various IT software under the provisions of various
subscription-based information technology arrangements. The terms range from three to five years,
including options that are more likely than not to be exercised. The discount rate applied to the
subscription-based technology arrangements are based on actual rates or an estimated incremental
borrowing rate, which ranged from 1.71% to 5.00% for all subscription-based technology
arrangements reported.
The total amount of subscription assets and the related accumulated amortization are as follows:
Total intangible right-to-use subscription assets
$
1,502,693
Less accumulated amortization
(248,067)
Carrying value
$
1,254,626
The following schedule details minimum subscription payments to maturity for the City's subscriptions
liability at June 30, 2024:
Governmental Activities
Principal
Interest
Fiscal years ending June 30:
2025
$
246,987
$
55,531
2026
214,869
44,391
2027
172,413
34,322
2028
164,129
25,871
2029
172,336
17,664
2030
180,951
9,048
Total
$
1,151,685
$
186,827
Variable and Other Payments
From time to time, the City's leases and SBITAs include variable payments and other payments, such
as termination penalties, that are not included in the lease/subscription liabilities because they are
either not fixed in substance (variable) or the City is not reasonably certain the other payments will be
required. The City recognized an insignificant amount of expenses related to these variable and other
payments and they have not been further disclosed or included in the measurement of the
lease/subscription liabilities.
8.
Interfund Receivables, Payables and Transfers
Short-term borrowings between funds are reported as due to/due from other funds. As of June 30, 2024,
the City reported the following interfund receivables and payables:
Due to
Due From
Fund:
General
$
-
$
106,000
Nonmajor
106,000
-
Total
$
106,000
$
106,000
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
57
Interfund transfers for the fiscal year ended June 30, 2024 are as follows:
Transfer Out
Transfer In
Fund:
General
$
501,597
$
-
Nonmajor
39,619
537,328
Water
-
474
Sewer
167,880
171,294
Total
$
709,096
$
709,096
Transfers were made to fund local matching requirements on various grants and to support operations.
9.
Pensions
The City contributes to the plans described below. The plans are component units of the State of Arizona.
At June 30, 2024, the City reported the following aggregate amounts related to pensions for all plans to
which it contributes:
Statement of Net Position and
Statement of Activities
Governmental
Activities
Business-Type
Activities
Total
Net pension liabilities
$
16,859,846
$
5,065,001
$
21,924,847
Deferred outflows of resources
9,258,790
973,224
10,232,014
Deferred inflows of resources
1,142,436
232,137
1,374,573
Pension expense
3,050,736
700,351
3,751,087
The City reported $4,652,109 of pension contributions as expenditures in the governmental funds related
to all pension plans to which it contributes.
Net OPEB asset/liabilities have not been recorded, or further disclosed, at June 30, 2024 in accordance
with GASB Statement 75, due to the relative insignificance to the City's financial statements.
Arizona State Retirement System
Plan Description
City employees not covered by the other pension plan 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 Web site at www.azasrs.gov.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
58
Benefits Provided
The ASRS provides retirement, health insurance premium supplement, long-term disability, and
survivor benefits. State statute establishes benefits 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
Years of service and age required to
receive benefit
Sum of years and age equals 80
10 years age 62
5 years age 50*
any years age 65
30 years age 55
25 years age 60
10 years age 62
5 years age 50*
any years age 65
Final average salary is based on
Highest 36 consecutive months
of last 120 months
Highest 60 consecutive months
of last 120 months
Benefit percent per year of service
2.1% to 2.3%
2.1% to 2.3%
*with actuarially reduced benefits.
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.
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, 2024,
active ASRS members were required by statute to contribute at the actuarially determined rate
of 12.29% (12.14% for retirement and 0.15% for long-term disability) of the members' annual
covered payroll, and the City was required by statute to contribute at the actuarially determined
rate of 12.29% (12.03% for retirement, 0.11% for health insurance premium benefit, and
0.15% 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 9.99% (9.94% for
retirement and 0.05% 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, 2024 were $1,700,200, $15,546 and $21,200, respectively.
During fiscal year 2024 , the City paid for ASRS pension contributions as follows: 68.74% from
the General Fund, 9.31% from the Water Fund, 19.22% from the Sewer Fund and 0.24% from the
Sanitation Fund.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
59
Pension Liability
At June 30, 2024, the City reported a liability of $15,822,217 for its proportionate share of the
ASRS' net pension liability. The net pension liability was measured as of June 30, 2023. The total
liability used to calculate the net asset or net liability was determined using update procedures to
roll forward the total liability from an actuarial valuation as of June 30, 2022, to the measurement
date of June 30, 2023.
The City's proportion of the net pension 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,
2023. The City's proportion measured as of June 30, 2023, was 0.09778%, which was an
increase of 0.01089% from its proportion measured as of June 30, 2022.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2024, the City recognized pension expense for ASRS of $2,676,532.
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
ASRS:
Differences between expected and actual experience
$
357,519
$
-
Changes of assumptions or other inputs
-
-
Net difference between projected and actual earnings on
pension plan investments
-
559,804
Changes in proportion and differences between City
contributions and proportionate share of contributions
1,132,148
-
City contributions subsequent to the measurement date
1,700,200
-
Total
$
3,189,867
$
559,804
The $1,700,200 reported as deferred outflows of resources related to ASRS pensions resulting
from City contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to ASRS pensions will be
recognized in pension expense as follows:
ASRS
Years ending June 30:
2025
$
559,982
2026
(163,858)
2027
603,303
2028
(69,564)
2029
-
Thereafter
-
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
60
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
ASRS:
Actuarial valuation date
June 30, 2022
Actuarial roll forward date
June 20, 2023
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, 2022, valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2020.
The long-term expected rate of return on ASRS pension plan investments was determined to be
7.0% 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.
The target allocation and best estimates of geometric real rates of return for each major asset
class are summarized in the following table:
Target
Allocation
Long-Term
Expected
Geometric
Real Rate
of Return
ASRS asset class:
Public equity
44 %
3.50 %
Credit
23
5.90
Real estate
17
5.90
Private equity
10
6.70
Interest rate sensitive
6
1.5
Total
100 %
Discount Rate
At June 30, 2023, the discount rate used to measure the ASRS total pension liability was 7.00%.
The projection of cash flows used to determine the discount rate assumed that contributions from
participating employers will be made based on the actuarially determined rates based on the
ASRS Board's funding policy, which establishes the contractually required rate under Arizona
statute. Based on those assumptions, the plans' fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
61
Sensitivity of City's Proportionate Share of the ASRS Net Pension Liability to Changes in the
Discount Rate
The following table presents the City's proportionate share of the net pension liability calculated
using the discount rate of 7%, 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%)
or 1 percentage point higher (8%) than the current rate:
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
ASRS:
City's proportionate share of the
net pension liability
$
23,699,357
$
15,822,217
$
9,254,075
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
Plan Description
City police and fire department employees who are regularly assigned hazardous duty participate
in the Public Safety Personnel Retirement System (PSPRS) or employees who became members
on or after July 1, 2017, may participate in the Public Safety Personnel Defined Contribution
Retirement Plan (PSPDCRP). The PSPRS administers an agent and cost-sharing multiple-
employer defined benefit pension plan and agent and cost-sharing multiple-employer defined
benefit health insurance premium benefit (OPEB) plan. A nine-member board known as the
Board of Trustees and the participating local boards govern the PSPRS according to the
provisions of A.R.S. Title 38, Chapter 5, Article 4. Employees who are PSPRS members
participate in the agent plans. 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 include their financial statements and
required supplementary information. The reports are available on the PSPRS web site at
www.psprs.com.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
62
Benefits Provided
The PSPRS provide retirement, health insurance premium supplement, disability and survivor
benefits. State statute establishes benefits terms. Retirement, disability and survivor benefits are
calculated on the basis of age, average monthly compensation, and service credit as follows:
Initial Membership Date
PSPRS
Before January 1, 2012
On or After January 1, 2012
and Before July 1, 2017
Retirement and Disability
Years of service and age required to
receive benefit
20 years of service, any age
15 years age 62
25 years of service or 15 years
of credited service, age 52.5
Final average salary is based on
Highest 36 months of last
20 years
Highest 60 months of last
20 years
Benefit percent:
Normal Retirement
50% less 4.0% for each year
of credited service less than
20 years OR plus 2.0% to 2.5%
for each year of credited
service over 20 years, not to
exceed 80%
1.5% to 2.5% per year
of credited service, not to
exceed 80%
Accidental Disability Retirement
50% or normal retirement, whichever is greater
Catastrophic Disability Retirement
90% for the first 60 months then reduced to either 62.5% or
normal retirement, whichever is greater
Ordinary Disability Retirement
Normal retirement pension that the member is entitled to receive,
prorated on Credited Service earned over the required
Credited Service for normal retirement (maximum ratio of 1).
Survivor Benefits
Retired members
80% of retired member's pension benefit
Active members
80% to 100% of accidental disability retirement benefit or 100% of
average monthly compensation if death was the result of injuries
received on the job
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on
inflation. PSPRS also provides temporary disability benefits of 50% of the member's
compensation for up to 12 months.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
63
Employees Covered by Benefit Terms
At June 30, 2024, the following employees were covered by the agent plans' benefit terms:
PSPRS
Police
PSPRS
Fire
Inactive employees or beneficiaries currently
receiving benefits
14
14
Inactive employees entitled to but not yet receiving
benefits
3
4
Active employees
17
18
Total
34
36
Contributions
State statutes establish the pension contribution requirements for active PSPRS employees. In
accordance with state statutes, annual actuarial valuations determine employer contribution
requirements for PSPRS pension and health insurance premium benefits. The combined active
member and employer contribution rates are expected to finance the costs of benefits employees
earn during the year, with an additional amount to finance any unfunded accrued liability.
Contribution rates for the year ended June 30, 2024, are indicated below. Rates are a percentage
of active members' annual covered payroll.
PSPRS
Police
PSPRS
Fire
Active members, pension
7.65% - 11.65%
7.65% - 11.65%
City:
Pension
20.97%
27.27%
Health insurance premium benefit
0.10%
0.26%
In addition, the City was required by statute to contribute at the actuarially determined rate of
9.18% for Police and Fire of the PSPRS of annual covered payroll of retired members who
worked for the City in positions that would typically fill and employees participating in the PSPRS
Tier 3 Risk Pool and PSPDCRP members in addition to the City's required contributions to the
PSPRS Tier 3 Risk Pool and PSPDCRP.
For the agent plans, the City's contributions to the plans for the year ended June 30, 2024, were:
PSPRS
Police
PSPRS
Fire
Pension:
Contributions made
$
1,641,380
$
1,723,677
During fiscal year 2024, the City paid 100% of the PSPRS pension contributions from the General
Fund.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
64
Pension Liability
At June 30, 2024, the City reported a PSPRS net pension liabilities of $2,032,729 for police and
$3,655,894 for fire for a total of $5,688,623.
The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
PSPRS:
Actuarial valuation date
June 30, 2023
Actuarial cost method
Entry age normal
Investment rate of return
7.2%
Wage inflation
3.0-6.25% for pensions
Price inflation
2.5% for pensions
Cost-of-living adjustment
1.85% for pensions
Mortality rates
PubS-2010 tables
Healthcare cost trend rate
Not applicable
Actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2021.
The long-term expected rate of return on PSPRS pension plan investments was determined to be
7.2% 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:
Target
Allocation
Long-Term
Expected
Geometric
Rate of
Return
PSPRS asset class:
U.S. public equity
24 %
3.98
%
International public equity
16
4.49
Global private equity
20
7.28
Other assets (capital appreciation)
7
4.49
Core bonds
6
1.90
Private credit
20
6.19
Diversifying strategies
5
3.68
Cash, Mellon
2
0.69
Total
100 %
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
65
Discount Rates
At June 30, 2024, the discount rate used to measure the PSPRS total pension liabilities was
7.20%. 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 the actuarially determined
contribution rate and the member rate. 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 liability.
Changes in the Net Pension Liability
Pension
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
PSPRS, Police:
Balance, June 30, 2023
$
18,483,290
$
15,674,815
$
2,808,475
Adjustments, beginning
-
-
-
Changes for the year:
Service cost
376,256
-
376,256
Interest on the total liability
1,331,100
-
1,331,100
Changes of benefit terms
-
-
-
Differences between expected and actual
experiences in the measurement of the
liability
517,087
-
517,087
Changes of assumptions or other inputs
-
-
-
Contributions, employer
-
1,589,171
(1,589,171)
Contributions, employee
-
187,280
(187,280)
Net investment income
-
1,231,622
(1,231,622)
Benefit payments, including refunds of
employee contributions
(744,101)
(744,101)
-
Administrative expense
-
(7,884)
7,884
Net changes
1,480,342
2,256,088
(775,746)
Balance, June 30, 2024
$
19,963,632
$
17,930,903
$
2,032,729
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
66
Pension
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
PSPRS, Fire:
Balance, June 30, 2023
$
21,730,133
$
18,432,697
$
3,297,436
Changes for the year:
Service cost
525,027
-
525,027
Interest on the total liability
1,564,326
-
1,564,326
Differences between expected and actual
experiences in the measurement of the
liability
1,560,872
-
1,560,872
Changes of assumptions or other inputs
-
-
-
Contributions, employer
-
1,699,612
(1,699,612)
Contributions, employee
-
177,009
(177,009)
Net investment income
-
1,433,467
(1,433,467)
Benefit payments, including refunds of
employee contributions
(1,056,821)
(1,056,821)
-
Administrative expense
-
(7,521)
7,521
Other changes
-
(10,800)
10,800
Net changes
2,593,404
2,234,946
358,458
Balance, June 30, 2024
$
24,323,537
$
20,667,643
$
3,655,894
Sensitivity of the City's Net Pension Liability to Changes in the Discount Rate
The following table presents the City's net pension liabilities calculated using the discount rate
of 7.2%, as well as what the City's net pension liability would be if it were calculated using a
discount rate that is 1 percentage point lower (6.2%) or 1 percentage point higher (8.2%) than
the current rate:
1% Decrease
(6.20%)
Current
Discount Rate
(7.20%)
1% Increase
(8.20%)
PSPRS, Police:
Net pension liability
$
4,920,865
$
2,032,729
$
(313,971)
1% Decrease
(6.20%)
Current
Discount Rate
(7.20%)
1% Increase
(8.20%)
PSPRS, Fire:
Net pension liability
$
7,093,970
$
3,655,894
$
837,737
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued
PSPRS financial reports.
Pension Expense
For the year ended June 30, 2024, the City recognized $840,701 for police and $1,011,462 for
fire for a total of $1,852,163 of PSPRS pension expense.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
67
Pension Deferred Outflows/Inflows of Resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
PSPRS, Police:
Differences between expected and actual experience
$
1,136,211
$
24,576
Changes of assumptions or other inputs
147,270
-
Net difference between projected and actual earnings on
pension plan investments
174,423
-
City contributions subsequent to the measurement date
1,641,380
-
Total
$
3,099,284
$
24,576
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
PSPRS, Fire:
Differences between expected and actual experience
$
1,811,844
$
592,144
Changes of assumptions or other inputs
182,443
-
Net difference between projected and actual earnings on
pension plan investments
147,199
-
City contributions subsequent to the measurement date
1,723,677
-
Total
$
3,865,163
$
592,144
The amounts reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
PSPRS
Police
Years ending June 30:
2025
$
451,181
2026
257,672
2027
634,289
2028
90,186
2029
-
Thereafter
-
PSPRS
Fire
Years ending June 30:
2025
$
331,610
2026
143,341
2027
819,510
2028
254,881
2029
-
Thereafter
-
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
68
Elected Officials Retirement Plan
Plan Description
Elected officials and judges participate in the Elected Officials Retirement Plan (EORP). EORP
administers a cost-sharing multiple-employer defined benefit pension plan and a cost-sharing
multiple employer defined benefit health insurance premium benefit (OPEB) plan for elected
officials and judges who were members of the plan on December 31, 2013. This plan was closed
to new members as of January 1, 2014. The PSPRS Board of Trustees governs the EORP
according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. The PSPRS issues a publicly
available financial report that includes financial statements and required supplementary
information for the EORP plans. The report is available on PSPRS's website at www.psprs.com.
Benefits Provided
The EORP 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 yearly compensation, and service credit as follows:
Initial Membership Date
EORP
Before January 1, 2012
On or After January 1, 2012
Retirement and Disability
Years of service and age required to
receive benefit
20 years, any age
10 years age 62
5 years, age 65
5 years, any age*
any years and age if disabled
10 years, age 62
5 years, age 65
any years and age if disabled
Final average salary is based on
Highest 36 months of last
10 years
Highest 60 months of last
10 years
Benefit percent:
Normal Retirement
4% per year of service,
not to exceed 80%
3% per year of service,
not to exceed 75%
Disability Retirement
80% with 10 or more
years of service
40% with 5-10 years of service
20% with less than 5 years
of service
75% with 10 or more
years of service
37.5% with 5-10 years
of service
18.75% with less than
5 years of service
Survivor Benefits
Retired members
75% of retired member's benefit
50% of retirement member's
benefit
Active members and other inactive
members
75% of disability retirement
benefit
50% of disability retirement
benefit
*With reduced benefits of 0.25% for each month early retirement precedes the member's normal
retirement age, with a maximum reduction of 30%
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on
inflation. In addition, the Legislature may enact permanent one-time benefit increases after a
Joint Legislative Budget Committee analysis of the increase's effects on the plan.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
69
Contributions
State statutes establish active member and employer contribution requirements. Statute also
appropriates $5 million annually through fiscal year 2043 for the EORP from the State of Arizona
to supplement the normal cost plus an amount to amortize the unfunded accrued liability and
designates a portion of certain court fees for the EORP. For the year ended June 30, 2024,
statute required active EORP members to contribute 7 or 13% of the members' annual covered
payroll and the City to contribute at the actuarially determined rate of 76.51% of all active EORP
members' annual covered payroll. Also, statute required the City to contribute 64.37% to EORP of
the annual covered payroll of elected officials and judges who were ASRS members and 70.51%
to EORP of the annual covered payroll of elected officials and judges who were EODCRS
members, in addition to the City's required contributions to ASRS and EODCRS for these elected
officials and judges.
During fiscal year June 30, 2024, the City paid 100% of the EORP pension contributions from the
General Fund.
Liability
At June 30, 2024, the City reported a liability for its proportionate share of the EORP's net
pension liability that reflected a reduction for the City's proportionate share of the State's
appropriation for EORP. The amount the City recognized as its proportionate share of the net
pension liability, the related state support, and the total portion of the net pension liability that was
associated with the City were as follows:
City's proportionate share of the EORP net pension liability
$
414,020
State's proportionate share of the EORP net pension liability
associated with the City
89,262
Total
$
503,282
The net liability was measured as of June 30, 2023 and the total liability used to calculate the net
liability was determined by an actuarial valuation as of that date.
The City's proportion of the net pension liability was based on the City's required contributions
to the pension plan relative to the total of all participating employers' required contributions for the
year ended June 30, 2023. The City's proportion measured as of June 30, 2023, was 0.066058%,
which was a decrease of 0.059207% from its proportion measured as of June 30, 2022.
Expense
For the year ended June 30, 2024, the City recognized pension expense/(income) for EORP of
$(144,350) and revenue of $73,205 for the City's proportionate share of the State's appropriation
to EORP and the designated court fees.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
70
Deferred Outflows/Inflows of Resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
EORP:
Differences between expected and actual experience
$
-
$
-
Net difference between projected and actual earnings on
pension plan investments
1,737
-
Changes in proportion and differences between City
contributions and proportionate share of contributions
-
198,053
Changes of assumptions or other inputs
City contributions subsequent to the measurement date
75,967
-
Total
$
77,704
$
198,053
The $75,967 reported as deferred outflows of resources related to EORP pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended June 30, 2025. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to EORP pensions will be
recognized in pension expense as follows:
EORP
Years ending June 30:
2025
$
(198,384)
2026
(2,268)
2027
4,706
2028
(370)
2029
-
Thereafter
-
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
EORP:
Actuarial valuation date
June 30, 2023
Actuarial cost method
Entry age normal
Investment rate of return
7.2%
Wage inflation
3.25% for pensions/not applicable for OPEB
Price inflation
2.5% for pensions/not applicable for OPEB
Cost-of-living adjustment
1.85% for pensions/not applicable for OPEB
Mortality rates
PubG-2010 tables
Healthcare cost trend rate
Not applicable
Actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2021.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
71
The long-term expected rate of return on EORP plan investments was determined to be
7.2% using a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension 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:
Target
Allocation
Long-Term
Expected
Geometric
Rate of
Return
EORP asset class:
U.S. public equity
24 %
3.98
%
International public equity
16
4.49
Global private equity
20
7.28
Other assets (capital appreciation)
7
4.49
Core bonds
6
1.90
Private credit
20
6.19
Diversifying strategies
5
3.68
Cash, Mellon
2
0.69
Total
100 %
Discount Rate
At June 30, 2023, the discount rate used to measure the EORP total pension liability was 7.2%.
The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate, employer contributions will be made at
the actuarial rates, and State contributions will be made as currently required by statute. Based
on those assumptions, the pension 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 liability.
Sensitivity of the City's Proportionate Share of the EORP Net Pension Liability to Changes
in the Discount Rate
The following table presents the City's proportionate share of the net pension liability calculated
using the discount rate of 7.2%, 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 (6.2%)
or 1 percentage point higher (8.2%) than the current rate:
1% Decrease
(6.2%)
Current
Discount Rate
(7.2%)
1% Increase
(8.2%)
EORP:
City's proportionate share of the
net pension liability
$
478,303
$
414,020
$
358,904
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately
issued EORP financial report.
City of Tolleson, Arizona
Notes to Financial Statements
June 30, 2024
72
10. Commitments
At June 30, 2024, the City has the following active construction commitments:
Remaining
Commitment
Project:
Aquatic Center
$
138,490
Utility Building Design Phase
850,000
Bio Scrubber Rehab
26,530
Gate Replacements
251,729
Fire Truck
58,000
Total
$
1,324,749
These projects will be financed from operating funds. These contracts will be paid in future periods.
11. 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
Municipal Risk Retention Pool, of which the City is a participating member. The limit for basic coverage is
for $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. 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 Arizona Municipal Risk Retention Pool is structured such that members 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.
The City is also insured by commercial insurance for potential worker related accidents.
73
Financial Section
Required Supplementary Information
Budgetary Comparison Schedules
General Fund
Public Safety Tax Fund
Pension Schedules
74
Year Ended June 30, 2024
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Taxes:
Sales taxes
32,400,660
$
32,400,660
$
42,410,103
$
10,009,443
$
Property taxes
5,173,500
5,173,500
5,190,863
17,363
Franchise taxes
50,000
50,000
54,575
4,575
Intergovernmental revenues
2,539,300
2,539,300
3,064,707
525,407
Fines and forfeitures
150,800
150,800
188,749
37,949
Licenses and permits
875,000
875,000
1,339,209
464,209
Charges for services
2,044,700
2,044,700
2,347,312
302,612
Rents and royalties
43,200
43,200
35,852
(7,348)
Contributions and donations
-
-
56,316
56,316
Investment earnings:
Interest income
1,008,000
1,008,000
2,471,293
1,463,293
Unrealized loss on investments
-
-
322,536
322,536
Other revenues
5,000
5,000
16,632
11,632
Total revenues
44,290,160
44,290,160
57,498,147
13,207,987
Expenditures
Current:
General government:
Mayor and council
881,100
881,100
706,308
174,792
City management
543,750
543,750
497,076
46,674
Public affairs admin
826,900
843,900
843,369
531
Housing services
859,350
859,350
395,106
464,244
City clerk
445,400
445,400
462,205
(16,805)
Employee resources
974,525
974,525
863,233
111,292
City magistrate
275,850
275,850
247,806
28,044
Court administration
653,820
653,820
546,962
106,858
City prosecutor
85,500
85,500
85,500
-
Finance
4,776,450
4,507,796
1,991,495
2,516,301
Information technology
1,965,010
1,973,010
1,589,779
383,231
Field operations vehicles
607,350
607,350
559,602
47,748
Field operations grounds
632,550
632,550
488,789
143,761
Field operations building
5,094,400
5,188,624
2,448,925
2,739,699
Human services
1,054,800
1,054,800
599,201
455,599
Non profit donations
62,000
62,000
55,998
6,002
Employee development relations
87,000
87,000
84,861
2,139
Total general government
19,825,755
19,676,325
12,466,215
7,210,110
Public safety:
Police administration
755,000
755,000
738,440
16,560
Police support services
2,252,600
2,252,600
1,757,712
494,888
Police field operations
4,548,150
4,548,150
4,887,171
(339,021)
Fire administration
1,172,800
1,172,800
1,002,158
170,642
Fire operations
4,318,200
4,318,200
4,214,205
103,995
Emergency Prepare
378,700
378,700
292,003
86,697
Buildings inspection
631,400
620,400
570,077
50,323
Impound
49,000
49,000
42,707
6,293
Total public safety
14,105,850
14,094,850
13,504,473
590,377
Budgeted Amounts
City of Tolleson, Arizona
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Required Supplementary Information
See notes to budgetary comparison schedules
75
Year Ended June 30, 2024
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Budgeted Amounts
City of Tolleson, Arizona
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Required Supplementary Information
Highway and streets
Field operations streets
1,304,150
$
1,304,150
$
927,559
$
376,591
$
Transportation
450,000
450,000
208,444
241,556
Total highway and streets
1,754,150
1,754,150
1,136,003
618,147
Culture and recreation:
Library
1,600,300
1,600,300
1,449,010
151,290
Aquatics center
2,487,000
2,447,430
5,180,315
(2,732,885)
Parks and recreation
2,469,800
2,569,800
2,252,713
317,087
Field operations - parks
1,051,200
1,051,200
386,825
664,375
Teen council
205,040
205,040
178,723
26,317
City promotion
610,450
610,450
586,423
24,027
Total culture and recreation
8,423,790
8,484,220
10,034,009
(1,549,789)
Economic development:
Economic development
1,835,600
1,835,600
1,006,526
829,074
Planning and engineering
8,192,150
8,267,150
722,242
7,544,908
Total economic development
10,027,750
10,102,750
1,728,768
8,373,982
Debt service:
Principal retirement
-
-
373,415
(373,415)
Interest
-
-
19,059
(19,059)
Total debt service
-
-
392,474
(392,474)
Total expenditures
54,137,295
54,112,295
39,261,942
14,850,353
Excess (deficiency) of revenues
over (under) expenditures
(9,847,135)
(9,822,135)
18,236,205
28,058,340
Other Financing Sources (Uses)
Subscription-based information technology
arrangements
-
-
1,324,675
1,324,675
Transfers out
(740,000)
(740,000)
(501,597)
238,403
Total other financing sources (uses)
(740,000)
(740,000)
823,078
1,563,078
Net change in fund balance
(10,587,135)
(10,562,135)
19,059,283
29,621,418
Fund Balance, Beginning
73,740,919
73,740,919
73,740,919
-
Fund Balance, Ending
63,153,784
$
63,178,784
$
92,800,202
$
29,621,418
$
See notes to budgetary comparison schedules
76
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Sales taxes
8,150,000
$
8,150,000
$
8,072,833
$
(77,167)
$
Charges for services
10,000
10,000
28,450
18,450
Investment earnings:
Interest income
200,000
200,000
320,216
120,216
Total revenues
8,360,000
8,360,000
8,421,499
61,499
Expenditures
Public safety:
Services, supplies and other
7,201,000
7,201,000
5,781,438
1,419,562
Capital outlay
2,055,000
2,055,000
1,626,582
428,418
Total expenditures
9,256,000
9,256,000
7,408,020
1,847,980
Net change in fund balance
(896,000)
(896,000)
1,013,479
1,909,479
Fund Balance, Beginning
11,810,906
11,810,906
11,810,906
-
Fund Balance, Ending
10,914,906
$
10,914,906
$
12,824,385
$
1,909,479
$
Budgeted Amounts
City of Tolleson, Arizona
Public Safety Tax Fund
Year Ended June 30, 2024
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Required Supplementary Information
See notes to budgetary comparison schedules
77
City of Tolleson, Arizona
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
Year Ended June 30, 2024
78
1.
Budgeting and Budgetary Control
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:
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.
Public hearings are conducted to obtain taxpayer comment.
Prior to the third Monday in August, the expenditure limitation for the City is legally enacted
through passage of an ordinance. 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).
State law requires that, each year, prior to April 1, the Economic Estimates Commission provides
the government with a final expenditure limit for the coming fiscal year.
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 Manager, subject to City Council approval, may at any time,
transfer any unencumbered appropriation balance or portion thereof between a department or
activity. The adopted budget cannot be amended in any way without City Council approval.
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, Debt Service
and Capital Projects 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 revenues plus the carry-over unrestricted cash balance
from the prior fiscal year. The limitation is applied to the total of the combined funds. The City complied
with this law during the year.
Supplementary budgetary appropriations were necessary during the year.
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, is not
employed by the City.
2.
Budgetary Basis of Accounting
The City's budget is prepared on a basis consistent with generally accepted accounting principles.
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
(2023)
(2022)
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
Arizona Retirement System
City's proportion of the net pension liability
0.097780%
0.086890%
0.086330%
0.087600%
0.088600%
0.085460%
0.081630%
0.078415%
0.077390%
0.074250%
City's proportionate share of the net pension liability
15,822,217
$
14,182,378
$
11,343,379
$
15,178,031
$
12,892,331
$
11,918,662
$
12,716,363
$
12,656,162
$
12,054,148
$
10,986,414
$
City's covered payroll
12,617,055
10,166,836
9,572,275
9,432,777
8,852,549
8,894,734
7,951,763
7,592,673
6,969,789
6,799,467
City's proportionate share of the net pension liability
as a percentage of its covered payroll
125.40%
139.50%
118.50%
160.91%
145.63%
134.00%
159.92%
166.69%
172.95%
161.58%
Plan fiduciary net position as a percentage of the
total pension liability
75.47%
74.26%
78.58%
69.33%
73.24%
73.40%
69.92%
67.06%
68.35%
69.49%
Elected Officials Retirement Plan
City's proportion of the net pension liability
0.000000%
0.125265%
0.142476%
0.129403%
0.124057%
0.101939%
0.093390%
0.069212%
0.060990%
0.081390%
City's proportionate share of the net pension liability
414,020
$
845,699
$
867,055
$
873,419
$
822,724
$
642,356
$
1,144,221
$
653,884
$
476,603
$
545,776
$
State's proportionate share of the net pension
liability associated with the City
-
77,462
85,836
81,632
77,327
110,064
237,474
135,009
148,585
167,340
Total
414,020
$
923,161
$
952,891
$
955,051
$
900,051
$
752,420
$
1,381,695
$
788,893
$
625,188
$
713,116
$
City's Covered Payroll
87,271
$
86,764
$
96,943
$
106,767
$
103,771
$
87,413
$
77,094
$
55,562
$
54,621
$
57,464
$
City's Proportionate Share of the Net Pension Liability
as a Percentage of its Covered Payroll
474.41%
974.72%
894.40%
818.06%
792.83%
734.85%
1484.20%
1176.86%
872.56%
949.77%
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
38.63%
32.01%
36.28%
29.80%
30.14%
30.36%
19.66%
23.42%
28.32%
31.91%
*Additional years' information will be displayed as it becomes available
City of Tolleson, Arizona
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability Cost - Sharing Pension Plan
June 30, 2024
(Measurement Date)
Reporting Fiscal Year
See notes to pension plan schedule
79
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
(2023)
(2022)
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
City of Tolleson Police
Public Safety Personnel Retirement System
Total Pension Liability
Service cost
376,256
$
368,989
$
411,979
$
416,974
$
489,506
$
465,683
$
473,995
$
398,983
$
385,782
$
381,895
$
Interest on the total pension liability
1,331,100
1,236,826
1,179,741
1,078,433
1,007,765
892,898
863,811
764,905
708,237
606,076
Changes on benefit terms
-
-
-
-
-
-
40,808
530,259
-
164,727
Differences between expected and actual experience
in the measurement of the pension liability
517,087
699,200
109,920
517,687
(86,018)
457,983
(650,605)
28,330
91,845
(166,928)
Changes of assumptions or other inputs
-
109,292
-
-
285,936
-
357,571
453,240
-
792,851
Benefit payments, including refunds of employee contributions
(744,101)
(1,009,698)
(743,638)
(496,998)
(443,086)
(598,856)
(466,574)
(412,948)
(528,208)
(430,081)
Net change in total pension liability
1,480,342
1,404,609
958,002
1,516,096
1,254,103
1,217,708
619,006
1,762,769
657,656
1,348,540
Total pension liability, beginning
18,483,290
17,078,681
16,120,679
14,604,583
13,350,480
12,132,772
11,513,766
9,750,997
9,093,341
7,744,801
Total pension liability, ending (a)
19,963,632
$
18,483,290
$
17,078,681
$
16,120,679
$
14,604,583
$
13,350,480
$
12,132,772
$
11,513,766
$
9,750,997
$
9,093,341
$
Plan Fiduciary Net Position
Contributions, employer
1,589,171
$
1,192,869
$
887,957
$
1,150,934
$
1,127,202
$
1,922,331
$
1,513,489
$
1,161,744
$
454,309
$
426,364
$
Contributions, employee
187,280
167,574
161,957
171,055
182,744
185,088
230,920
238,489
217,506
201,353
Net investment income
1,231,622
(641,699)
3,422,011
147,349
550,647
566,510
753,490
31,927
179,481
577,456
Benefit payments, including refunds of employee contributions
(744,101)
(1,009,698)
(743,638)
(496,998)
(443,086)
(598,856)
(466,574)
(412,948)
(528,208)
(430,081)
Hall/Parker Settlement
-
-
-
-
-
(254,140)
-
-
-
-
Administrative expense
(7,884)
(11,580)
(16,157)
(12,017)
(10,566)
(9,322)
(7,067)
(4,993)
(4,761)
-
Other changes
-
-
-
-
-
99
78
(34,989)
(78,507)
(4,650)
Net change in plan fiduciary net position
2,256,088
(302,534)
3,712,130
960,323
1,406,941
1,811,710
2,024,336
979,230
239,820
770,442
Plan Fiduciary Net Position, Beginning
15,674,815
15,977,349
12,265,219
11,326,218
9,924,324
8,112,614
6,088,278
5,109,048
4,869,228
4,098,786
Adjustments, beginning
-
-
-
(21,322)
(5,047)
-
-
-
-
-
Plan Fiduciary Net Position, Ending (b)
17,930,903
$
15,674,815
$
15,977,349
$
12,265,219
$
11,326,218
$
9,924,324
$
8,112,614
$
6,088,278
$
5,109,048
$
4,869,228
$
City's Net Pension Liability, Ending (a) - (b)
2,032,729
$
2,808,475
$
1,101,332
$
3,855,460
$
3,278,365
$
3,426,156
$
4,020,158
$
5,425,488
$
4,641,949
$
4,224,113
$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
89.82%
84.81%
93.55%
76.08%
77.55%
74.34%
66.87%
52.88%
52.40%
53.55%
Covered Payroll
2,018,404
$
2,225,190
$
1,659,700
$
1,886,156
$
1,879,940
$
2,091,078
$
2,044,846
$
2,047,119
$
1,965,393
$
1,956,233
$
City's Net Pension Liability as a Percentage
of Payroll
100.71%
126.21%
66.36%
204.41%
174.39%
163.85%
196.60%
265.03%
236.18%
215.93%
*Additional years' information will be displayed as it becomes available
(Measurement Date)
Reporting Fiscal Year
City of Tolleson, Arizona
Required Supplementary Information
Schedule of Changes in the City's Net Pension Liability and Related Ratios Agent
Pension Plan
June 30, 2024
See notes to pension plan schedule
80
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
(2023)
(2022)
(2021)
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
(2014)
City of Tolleson Fire
Public Safety Personnel Retirement System
Total Pension Liability
Service cost
525,027
$
511,559
$
472,274
$
476,161
$
612,498
$
512,618
$
553,129
$
434,330
$
437,425
$
416,879
$
Interest on the total pension liability
1,564,326
1,517,889
1,398,273
1,328,189
1,320,018
1,176,421
1,078,336
902,804
809,086
721,067
Changes on benefit terms
-
-
-
-
-
-
107,196
1,210,896
-
(63,500)
Differences between expected and actual experience
in the measurement of the pension liability
1,560,872
(400,785)
809,130
380,523
(1,126,982)
138,781
(291,050)
(25,025)
179,866
(67,804)
Changes of assumptions or other inputs
-
149,512
-
-
277,727
-
336,050
530,950
-
414,674
Benefit payments, including refunds of employee contributions
(1,056,821)
(658,970)
(1,501,797)
(940,062)
(241,227)
(245,783)
(241,485)
(230,974)
(230,974)
(389,667)
Net change in total pension liability
2,593,404
1,119,205
1,177,880
1,244,811
842,034
1,582,037
1,542,176
2,822,981
1,195,403
1,031,649
Total pension liability, beginning
21,730,133
20,610,928
19,433,048
18,188,237
17,346,203
15,764,166
14,221,990
11,399,009
10,203,606
9,171,957
Total pension liability, ending (a)
24,323,537
$
21,730,133
$
20,610,928
$
19,433,048
$
18,188,237
$
17,346,203
$
15,764,166
$
14,221,990
$
11,399,009
$
10,203,606
$
Plan Fiduciary Net Position
Contributions, employer
1,699,612
$
792,535
$
687,315
$
955,240
$
1,278,913
$
1,163,074
$
833,691
$
751,037
$
401,653
$
360,947
$
Contributions, employee
177,009
163,156
176,699
200,466
259,088
202,211
286,450
295,993
269,101
232,876
Net investment income
1,433,467
(758,262)
4,266,708
189,383
725,413
817,294
1,157,802
51,108
289,531
913,806
Benefit payments, including refunds of employee contributions
(1,056,821)
(658,970)
(1,501,797)
(940,062)
(241,227)
(245,783)
(241,485)
(230,974)
(230,974)
(389,667)
Hall/Parker Settlement
-
-
-
-
-
(440,563)
-
-
-
-
Administrative expense
(7,521)
(13,679)
(19,984)
(15,444)
(13,603)
(13,139)
(10,645)
(7,754)
(7,452)
-
Other changes
(10,800)
-
(178,693)
-
-
128
49,430
243,929
1,330
(12,064)
Net change in plan fiduciary net position
2,234,946
(475,220)
3,430,248
389,583
2,008,584
1,483,222
2,075,243
1,103,339
723,189
1,105,898
Plan Fiduciary Net Position, Beginning
18,432,697
18,907,917
15,477,669
15,088,086
13,083,989
11,600,767
9,525,524
8,422,185
7,698,996
6,593,098
Adjustment, beginning
-
-
-
-
(4,487)
-
-
-
-
-
Plan Fiduciary Net Position, Ending (b)
20,667,643
$
18,432,697
$
18,907,917
$
15,477,669
$
15,088,086
$
13,083,989
$
11,600,767
$
9,525,524
$
8,422,185
$
7,698,996
$
City's Net Pension Liability, Ending (a) - (b)
3,655,894
$
3,297,436
$
1,703,011
$
3,955,379
$
3,100,151
$
4,262,214
$
4,163,399
$
4,696,466
$
2,976,824
$
2,504,610
$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
84.97%
84.83%
91.74%
79.65%
82.96%
75.43%
73.59%
66.98%
73.89%
75.45%
Covered Payroll
2,159,563
$
2,158,417
$
2,151,312
$
1,991,039
$
2,080,669
$
2,160,212
$
2,351,738
$
2,234,206
$
2,425,801
$
2,274,469
$
City's Net Pension Liability as a Percentage
of Covered Payroll
169.29%
152.77%
79.16%
198.66%
149.00%
197.31%
177.03%
210.21%
122.72%
110.12%
Additional years' information will be displayed as it becomes available
(Measurement Date)
Reporting Fiscal Year
City of Tolleson, Arizona
Required Supplementary Information
Schedule of Changes in the City's Net Pension Liability and Related Ratios Agent
Pension Plan
June 30, 2024
See notes to pension plan schedule
81
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Arizona State Retirement System
Statutorily required contribution
1,700,200
$
1,503,953
$
1,221,037
$
1,115,170
$
1,080,053
$
989,715
$
969,526
$
857,200
$
823,805
$
758,313
$
City's contributions in relation to the
statutorily required contribution
1,700,200
1,503,953
1,221,037
1,115,170
1,080,053
989,715
969,526
857,200
823,805
758,313
City's contribution deficiency (excess)
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
City's Covered Payroll
14,133,001
$
12,617,055
$
10,166,836
$
9,572,275
$
9,432,777
$
8,852,549
$
8,894,734
$
7,951,763
$
7,592,673
$
6,969,789
$
City's Contributions as a Percentage of
Covered Payroll
12.03%
11.92%
12.01%
11.65%
11.45%
11.18%
10.90%
10.78%
10.85%
10.88%
Elected Officials Retirement Plan
Statutorily required contribution
75,967
$
66,771
$
61,099
$
59,552
$
58,946
$
63,819
$
20,542
$
18,117
$
13,057
$
12,836
$
City's contributions in relation to the
actuarially determined contribution
75,967
66,771
61,099
59,552
58,946
63,819
20,542
18,117
13,057
12,836
City's contribution deficiency (excess)
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
City's Covered Payroll
99,290
$
87,271
$
86,764
$
96,943
$
106,767
$
103,771
$
87,413
$
77,094
$
55,562
$
54,621
$
City's Contributions as a Percentage of
Covered Payroll
76.51%
76.51%
70.42%
61.43%
55.21%
61.50%
23.50%
23.50%
23.50%
23.50%
The City was not required and did not contribute to the EORP health insurance premium benefit plan for fiscal years 2019, 2018 or 2017. Information for fiscal years 2016 through 2010 is not available.
City of Tolleson Police
Public Safety Personnel Retirement System
Actuarially determined contribution
641,380
$
662,921
$
533,823
$
487,957
$
515,934
$
638,841
$
719,034
$
613,489
$
461,744
$
454,309
$
City's contributions in relation to the
actuarially determined contribution
1,641,380
1,662,921
1,233,823
887,957
1,150,934
1,127,202
1,922,331
1,513,489
1,161,744
454,309
City's contribution deficiency (excess)
(1,000,000)
$
(1,000,000)
$
(700,000)
$
(400,000)
$
(635,000)
$
(488,361)
$
(1,203,297)
$
(900,000)
$
(700,000)
$
-
$
City's Covered Payroll
2,598,784
$
2,686,066
$
2,225,190
$
1,659,700
$
1,886,156
$
1,879,940
$
2,091,078
$
2,044,846
$
2,047,119
$
1,965,393
$
City's Contributions as a Percentage of
Covered Payroll
63.16%
61.91%
55.45%
53.50%
61.02%
59.96%
91.93%
74.01%
56.75%
23.12%
City of Tolleson Fire
Public Safety Personnel Retirement System
Actuarially determined contribution
723,677
$
709,672
$
550,828
$
562,315
$
635,240
$
469,927
$
611,230
$
433,691
$
751,037
$
401,653
$
City's contributions in relation to the
actuarially determined contribution
1,723,677
1,709,672
750,828
687,315
955,240
1,278,913
1,163,074
833,691
751,037
401,653
City's contribution deficiency (excess)
(1,000,000)
$
(1,000,000)
$
(200,000)
$
(125,000)
$
(320,000)
$
(808,986)
$
(551,844)
$
(400,000)
$
-
$
-
$
City's Covered Payroll
2,620,119
$
2,569,413
$
2,158,417
$
2,151,312
$
1,991,039
$
2,080,669
$
2,160,212
$
2,351,738
$
2,234,206
$
2,425,801
$
City's Contributions as a Percentage of
Covered Payroll
65.79%
66.54%
34.79%
31.95%
47.98%
61.47%
53.84%
35.45%
33.62%
16.56%
*Additional years' information will be displayed as it becomes available
City of Tolleson, Arizona
Required Supplementary Information
Schedule of City Pension Contributions
June 30, 2024
Reporting Fiscal Year
See notes to pension plan schedule
82
City of Tolleson, Arizona
Required Supplementary Information
Notes to Pension Plan Schedules
June 30, 2024
83
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 of the 2022
actuarial valuation
19 years for underfunded
20 years for overfunded
Asset valuation method
7-year smoothed fair value; 80%/120% market
corridor
Actuarial assumptions:
Investment rate of return
In the 2022 actuarial valuation, the investment rate
of return was decreased from 7.3% to 7.2%. In the
2019 actuarial valuation, the investment rate of
return was decreased from 7.4% to 7.3%. In 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 2014
actuarial valuation, the investment rate of return
was decreased from 8.0% to 7.85%.
Projected salary increases
In the 2017 actuarial valuation, projected salary
increases were decreased from 4.0% - 8.0% to
3.5% - 7.5% for PSPRS and from 4.0% - 7.25% to
3.5% - 6.5% for CORP. In the 2014 actuarial
valuation, projected salary increases were
decreased from 4.5% - 8.5% to 4.0% - 8.0% for
PSPRS and from 4.5% - 7.75% to 4.0% - 7.25% for
CORP. In the 2013 actuarial valuation, projected
salary increases were decreased from 5.0% - 9.0%
to 4.5% - 8.5% for PSPRS and from 5.0% - 8.25%
to 4.5% - 7.75% for CORP.
Wage growth
In the 2017 actuarial valuation, wage growth was
decreased from 4% to 3.5% for PSPRS and
CORP. In the 2014 actuarial valuation, wage
growth was decreased from 4.5% to 40% for
PSPRS and CORP. In 2013 actuarial valuation,
wage growth was decreased from 5.0% to 4.5% for
PSPRS and CORP.
Retirement age
Experience-based table of rates that is specific to the
type of eligibility condition. Last updated for the
2012 valuation pursuant to an experience study of
the period July 1, 2006 - June 30, 2011.
Mortality
In the 2019 actuarial valuation, changed to
PubS-2010 tables. In the 2017 actuarial valuation,
changed to RP-2014 tables, with
75% of MP-2016 fully generational projection
scales. RP-2000 mortality table (adjusted by 105%
for both males and females).
City of Tolleson, Arizona
Required Supplementary Information
Notes to Pension Plan Schedules
June 30, 2024
84
2.
Factors That Affect Trends
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding
permanent pension benefit increases and increased employee pension contribution rates were
unconstitutional or a breach of contract because those provisions apply to individuals who were members
as of the law's effective date. As a result, the PSPRS changed benefit terms to reflect the prior
mechanism for funding permanent benefit increases for those members and revised actuarial
assumptions to explicitly value future permanent benefit increases. PSPRS also reduced those members'
employee contribution rates. These changes are reflected in the plan's pension liabilities for fiscal year
2015 (measurement date 2014) for members who were retired as of the law's effective date and fiscal
year 2018 (measurement date 2017) for members who retired or will retire after the law's effective date.
These changes also increased the PSPRS- required pension contributions beginning in fiscal year 2016
for members who were retired as of the law's effective date. These changes increased the PSPRS
required contributions beginning in fiscal year 2019 for members who retired or will retire after the law's
effective date. Also, the City refunded excess employee contributions to PSPRS members. PSPRS
allowed the City to reduce its actual employer contributions for the refund amounts. As a result, the City's
pension contributions were less than the actuarially or statutorily determined for 2018 and 2019.
The fiscal year 2019 (measurement date 2018) pension liabilities for EORP reflect the replacement of the
permanent benefit increase (PBI) for retirees based on investment returns with a cost of living adjustment
based on inflation. Also, the EORP liability and required pension contributions for fiscal year 2019 reflect
a statutory change that requires the employer contribution rate to be actuarially determined. This change
increased the discount rate used to calculate the liability thereby reducing the total pension liability.
85
Financial Section
Supplementary Information
Nonmajor Governmental Funds Financial Statements
Special Revenue Funds
Highway User Revenue Fund (HURF) - This fund accounts for the City's share of Arizona's highway
user tax revenues and associated expenditures legally restricted for road construction and
maintenance.
Grants Fund - This fund accounts for miscellaneous federal and state grants and other contributions
that are restricted for specific use.
Debt Service Fund
Debt Service Fund - This fund accounts for the government's accumulation of resources for and the
payment of long-term debt principal, interest and related costs.
86
Highway User
Revenue
Debt
Fund
Grants
Service
Total
Assets
Cash and cash equivalents
944,803
$
190,416
$
154,242
$
1,289,461
$
Receivables, net:
Taxes receivable
-
-
29,491
29,491
Intergovernmental
71,448
203,984
52,157
327,589
Total assets
1,016,251
$
394,400
$
235,890
$
1,646,541
$
Liabilities
Accounts payable
17,481
$
29,411
$
-
$
46,892
$
Accrued wages and benefits
-
8,780
-
8,780
Due to other funds
-
31,000
75,000
106,000
Total liabilities
17,481
69,191
75,000
161,672
Deferred Inflows of Resources
Unavailable revenue
-
25,172
20,236
45,408
Total deferred inflows of resources
-
25,172
20,236
45,408
Fund Balances
Restricted:
Highways and streets
998,770
-
-
998,770
Debt service
-
-
140,654
140,654
Grants
-
300,037
-
300,037
Total fund balances
998,770
300,037
140,654
1,439,461
Total liabilities, deferred inflows
of resources and fund balances
1,016,251
$
394,400
$
235,890
$
1,646,541
$
Special Revenue
City of Tolleson, Arizona
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
87
Year Ended June 30, 2024
Highway User
Revenue
Debt
Fund
Grants
Service
Total
Revenues
Taxes:
Sales taxes
-
$
-
$
625,884
$
625,884
$
Property taxes
-
-
2,094,509
2,094,509
Intergovernmental
937,089
1,078,441
-
2,015,530
Charges for services
-
173,392
-
173,392
Investment earnings:
Interest income
26,911
-
5,975
32,886
Total revenues
964,000
1,251,833
2,726,368
4,942,201
Expenditures
Current:
Public safety
-
459,277
-
459,277
Highway and streets
1,206,910
-
-
1,206,910
Health and welfare
-
1,209,939
-
1,209,939
Capital outlay
-
60,813
-
60,813
Debt service:
Principal retirement
-
-
2,245,142
2,245,142
Interest and fiscal charges
-
-
602,535
602,535
Total expenditures
1,206,910
1,730,029
2,847,677
5,784,616
Excess of revenues over
(under) expenditures
(242,910)
(478,196)
(121,309)
(842,415)
Other Financing Sources (Uses)
Transfers in
-
501,597
35,731
537,328
Transfers out
-
-
(39,619)
(39,619)
Total other financing sources (uses)
-
501,597
(3,888)
497,709
Net change in fund balances
(242,910)
23,401
(125,197)
(344,706)
Fund Balances, Beginning
1,241,680
276,636
265,851
1,784,167
Fund Balances, Ending
998,770
$
300,037
$
140,654
$
1,439,461
$
Special Revenue
City of Tolleson, Arizona
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
88
89
Financial Section
Supplementary Information
Budgetary Comparison Schedules
Highway User Revenue Fund
Grants Fund
Debt Service Fund
90
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Intergovernmental revenues
819,000
$
819,000
$
937,089
$
118,089
$
Investment earnings:
Interest income
17,500
17,500
26,911
9,411
Total revenues
836,500
836,500
964,000
127,500
Expenditures
Current:
Highways and streets
1,185,000
1,210,000
1,206,910
3,090
Total expenditures
1,185,000
1,210,000
1,206,910
3,090
Excess (deficiency) of revenues
over (under) expenditures
(348,500)
(373,500)
(242,910)
130,590
Net change in fund balance
(348,500)
(373,500)
(242,910)
130,590
Fund Balance, Beginning
1,241,680
1,241,680
1,241,680
-
Fund Balance, Ending
893,180
$
868,180
$
998,770
$
130,590
$
Budgeted Amounts
City of Tolleson, Arizona
Year Ended June 30, 2024
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Highway User Revenue Fund
91
Year Ended June 30, 2024
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Intergovernmental revenues
53,781,355
$
53,781,355
$
1,078,441
$
(52,702,914)
$
Charges for service
-
-
173,392
173,392
Total revenues
53,781,355
53,781,355
1,251,833
(52,529,522)
Expenditures
Current:
Public safety
391,270
391,270
459,277
(68,007)
Health and welfare
-
-
1,209,939
(1,209,939)
Capital outlay
51,821,560
51,821,560
60,813
51,760,747
Total expenditures
52,212,830
52,212,830
1,730,029
50,482,801
Excess (deficiency) of revenues
over (under) expenditures
1,568,525
1,568,525
(478,196)
(2,046,721)
Other Financing Sources (Uses)
Transfers in
700,699
700,699
501,597
(199,102)
Total other financing sources
and (uses)
700,699
700,699
501,597
(199,102)
Net change in fund balance
2,269,224
2,269,224
23,401
(2,245,823)
Fund Balance, Beginning
276,636
276,636
276,636
-
Fund Balance, Ending
2,545,860
$
2,545,860
$
300,037
$
(2,245,823)
$
Budgeted Amounts
City of Tolleson, Arizona
Grants Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
92
Year Ended June 30, 2024
Variance With
Final Budget-
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Sales taxes
626,000
$
626,000
$
625,884
$
(116)
$
Property taxes
2,712,400
2,712,400
2,094,509
(617,891)
Investment earnings:
Interest income
-
-
5,975
5,975
Total revenues
3,338,400
3,338,400
2,726,368
(612,032)
Expenditures
Current:
Debt service:
Principal retirement
4,114,150
4,114,150
2,245,142
1,869,008
Interest
-
-
602,535
(602,535)
Total expenditures
4,114,150
4,114,150
2,847,677
1,266,473
Excess (deficiency) of revenues
over (under) expenditures
(775,750)
(775,750)
(121,309)
654,441
Other Financing Sources (Uses)
Transfers in
-
-
35,731
35,731
Transfer out
-
-
(39,619)
(39,619)
Total other financing sources
and uses
-
-
(3,888)
(3,888)
Net change in fund balance
(775,750)
(775,750)
(125,197)
650,553
Fund Balance, Beginning
265,851
265,851
265,851
-
Fund Balance, Ending
(509,899)
$
(509,899)
$
140,654
$
650,553
$
Budgeted Amounts
City of Tolleson, Arizona
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
93
94
95
Statistical Section
Contents
Pages
Financial Trends:
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
97-102
Revenue Capacity:
These schedules contain information to help the reader assess the City's most significant
local revenue sources, property tax and sales and uses taxes.
103-109
Debt Capacity:
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt
in the future.
110-115
Demographic and Economic Statistics:
These schedules offer economic and demographic indicators to help the reader understand
the environment within which the City's financial activities take place.
116-118
Operating Information:
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and the
activities it performs.
119-124
96
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Governmental Activities
Net investment in capital assets
30,954,613
$
30,421,590
$
32,215,631
$
35,872,282
$
43,344,723
$
46,353,982
$
47,483,826
$
55,890,355
$
63,268,921
$
71,139,238
$
Restricted
2,633,181
4,896,402
5,684,881
3,652,102
15,686,162
5,668,215
9,331,450
13,016,513
13,983,979
14,612,531
Unrestricted
(373,945)
4,441,397
6,218,425
9,449,895
(1,626,497)
15,458,380
29,152,183
47,334,838
61,087,177
81,057,520
Total governmental activities net position
33,213,849
39,759,389
44,118,937
48,974,279
57,404,388
67,480,577
85,967,459
116,241,706
138,340,077
166,809,289
Business-Type Activities
Net investment in capital assets
42,351,199
46,812,938
47,446,347
48,568,972
50,126,416
50,543,526
52,261,630
52,648,010
54,143,716
57,908,288
Restricted
494,852
-
499,179
506,163
518,226
619,400
579,374
601,735
549,112
579,785
Unrestricted
17,740,832
18,087,097
19,893,307
22,973,234
26,976,548
30,438,009
32,967,733
35,733,525
38,290,027
40,475,574
Total business-type activities net position
60,586,883
64,900,035
67,838,833
72,048,369
77,621,190
81,600,935
85,808,737
88,983,270
92,982,855
98,963,647
Primary Government
Net investment in capital assets
73,305,812
77,234,528
79,661,978
84,441,254
93,471,139
96,897,508
99,745,456
108,538,365
117,412,637
129,047,526
Restricted
3,128,033
4,896,402
6,184,060
4,158,265
16,204,388
6,287,615
9,910,824
13,618,248
14,533,091
15,192,316
Unrestricted
17,366,887
22,528,494
26,111,732
32,423,129
25,350,051
45,896,389
62,119,916
83,068,363
99,377,204
121,533,094
Total primary government net position
93,800,732
$
104,659,424
$
111,957,770
$
121,022,648
$
135,025,578
$
149,081,512
$
171,776,196
$
205,224,976
$
231,322,932
$
265,772,936
$
(Unaudited)
City of Tolleson, Arizona
Table 1
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
97
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Expenses
Governmental activities:
General government
5,415,488
$
5,596,149
$
6,057,979
$
6,699,834
$
6,244,732
$
8,293,849
$
8,802,055
$
8,249,937
$
11,705,795
$
12,285,858
$
Public safety
10,820,773
11,510,678
13,703,866
13,256,375
14,014,601
13,327,589
15,922,346
13,637,171
16,298,825
18,972,146
Highways and streets
2,155,241
2,146,277
2,158,993
2,702,277
2,709,339
2,980,662
2,520,959
2,379,025
3,122,637
2,636,514
Culture and recreation
1,691,577
1,667,220
2,438,231
2,382,861
2,907,590
3,545,868
3,085,615
3,783,474
4,740,527
5,470,852
Economic development
715,207
641,130
1,196,079
794,512
1,000,307
701,000
807,093
1,220,010
538,311
1,768,355
Health and welfare
426,259
510,429
455,278
506,590
545,600
602,713
805,115
941,668
1,014,599
1,081,804
Interest on long-term debt
776,981
750,181
717,956
636,533
727,733
1,093,652
735,730
616,099
535,092
475,620
Total governmental activities
22,001,526
22,822,064
26,728,382
26,978,982
28,149,902
30,545,333
32,678,913
30,827,384
37,955,786
42,691,149
Business-type activities:
Water
5,032,519
5,379,124
5,294,611
5,926,382
5,287,268
5,927,310
6,130,858
5,980,303
6,846,830
7,439,306
Sanitation
502,305
475,758
418,557
373,399
362,235
362,020
390,518
6,955,939
10,554,083
10,750,021
Wastewater and sewer
6,408,153
6,434,002
6,720,582
6,639,875
6,298,733
6,885,266
6,739,960
356,675
421,727
391,739
Total business-type activities
11,942,977
12,288,884
12,433,750
12,939,656
11,948,236
13,174,596
13,261,336
13,292,917
17,822,640
18,581,066
Total primary government expenses
33,944,503
35,110,948
39,162,132
39,918,638
40,098,138
43,719,929
45,940,249
44,120,301
55,778,426
61,272,215
Program Revenues
Governmental activities:
Fines, fees and charges for services:
General government
888,639
883,447
1,005,417
1,527,499
1,562,514
1,314,784
3,116,069
4,811,845
1,478,162
667,802
Public safety
273,624
598,221
404,051
321,968
303,551
1,056,164
1,450,784
1,253,789
1,486,168
1,828,817
Highways and streets
-
126,794
-
-
-
-
-
-
-
-
Culture and recreation
14,458
122,954
22,316
36,482
64,882
60,419
5,999
28,228
65,055
97,115
Economic development
-
-
-
-
-
-
-
-
-
1,339,209
Health and welfare
-
-
-
-
-
-
-
-
-
173,392
Other
9,250
-
-
-
-
-
-
-
-
-
Operating grants and contributions
916,333
759,072
973,563
972,700
1,355,565
1,923,497
2,471,673
1,415,906
1,388,004
1,650,870
Capital grants and contributions
-
21,240
18,472
69,939
161,413
31,883
10,242
391,195
221,661
333,577
Total governmental activities program revenues
2,102,304
2,511,728
2,423,819
2,928,588
3,447,925
4,386,747
7,054,767
7,900,963
4,639,050
6,090,782
Business-type activities:
Charges for services:
Water
6,583,969
6,596,501
6,460,671
6,873,286
6,609,408
6,682,768
7,296,769
7,097,130
7,232,297
7,893,323
Sanitation
355,328
352,861
384,453
449,095
457,751
449,137
448,320
452,833
449,584
459,187
Wastewater and sewer
5,420,273
5,899,361
5,743,503
6,293,079
6,085,228
6,917,860
6,679,392
7,171,037
11,841,623
10,783,320
Capital grants and contributions
4,673,401
150,584
49,811
-
-
-
1,217,479
784,432
65,187
2,360,424
Total business-type activities program revenues
17,032,971
12,999,307
12,638,438
13,615,460
13,152,387
14,049,765
15,641,960
15,505,432
19,588,691
21,496,254
Total primary government revenues
19,135,275
$
15,511,035
$
15,062,257
$
16,544,048
$
16,600,312
$
18,436,512
$
22,696,727
$
23,406,395
$
24,227,741
$
27,587,036
$
(Continued)
City of Tolleson, Arizona
(Unaudited)
Table 2
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
98
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes:
Sales taxes
17,564,422
$
19,592,713
$
20,910,180
$
21,434,225
$
25,448,636
$
26,365,478
$
34,079,997
$
44,587,118
$
43,597,936
$
51,108,820
$
Property taxes
4,508,560
3,917,340
5,615,157
4,955,918
4,859,308
6,514,517
7,386,020
6,699,035
6,850,497
7,296,622
Franchise taxes
45,765
44,139
49,514
42,647
47,217
51,390
55,333
53,575
54,561
54,575
State revenue sharing
792,313
1,042,649
1,093,270
689,720
725,514
754,547
874,563
1,020,466
1,078,354
1,093,578
State income tax revenue sharing
598,140
788,017
857,378
889,064
872,525
943,866
1,053,562
953,371
1,383,873
1,923,309
Auto lieu tax
249,830
269,956
275,697
583,704
510,081
509,050
549,384
544,683
562,331
376,427
Investment earnings
38,073
147,383
162,952
285,082
838,282
873,182
67,930
(708,714)
1,847,112
3,146,931
Other
37,376
55,827
119,963
164,376
152,928
222,745
44,041
51,134
40,443
73,205
Transfers
(282,785)
(116,962)
(420,000)
(139,000)
(25,447)
-
-
-
(3,888)
Total governmental activities
23,551,694
25,741,062
28,664,111
28,905,736
33,429,044
36,234,775
44,110,830
53,200,668
55,415,107
65,069,579
Business-type activities:
Property taxes
2,654,745
3,293,011
2,157,082
3,224,893
3,637,831
2,451,096
1,773,206
1,212,016
1,073,680
1,167,227
Investment earnings
14,960
96,484
99,441
169,839
705,392
653,480
53,972
(249,998)
1,159,854
1,920,254
Other
77,861
96,272
57,587
-
-
-
-
-
-
(25,765)
Transfers
282,785
116,962
420,000
139,000
25,447
-
-
-
-
3,888
Total business-type activities
3,030,351
3,602,729
2,734,110
3,533,732
4,368,670
3,104,576
1,827,178
962,018
2,233,534
3,065,604
Total primary government
26,582,045
$
29,343,791
$
31,398,221
$
32,439,468
$
37,797,714
$
39,339,351
$
45,938,008
$
54,162,686
$
57,648,641
$
68,135,183
$
Change in Net Position
Governmental activities
3,652,472
$
5,430,726
$
4,359,548
$
4,855,342
$
4,855,342
$
8,727,067
$
10,076,189
$
30,274,247
$
22,098,371
$
28,469,212
$
Business-type activities
8,120,345
4,313,152
2,938,798
4,209,536
5,572,821
3,979,745
3,979,745
3,174,533
3,999,585
5,980,792
Total primary government
11,772,817
$
9,743,878
$
7,298,346
$
9,064,878
$
10,428,163
$
12,706,812
$
14,055,934
$
33,448,780
$
26,097,956
$
34,450,004
$
(Concluded)
City of Tolleson, Arizona
(Unaudited)
Table 2
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
99
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Fund
Restricted
336,340
$
485,014
$
563,507
$
829,648
$
509,582
$
545,198
$
526,278
$
520,396
$
490,798
$
388,906
$
348,685
$
Nonspendable
5,000
4,446
-
1,017
4,505
23,095
5,711
6,744
8,003
38,024
11,148
Assigned
-
-
-
-
-
-
-
-
-
-
23,665,158
Unassigned
7,556,991
9,879,027
16,564,021
21,220,634
23,303,394
23,333,773
28,798,314
43,984,645
61,537,556
73,313,989
68,775,211
Total general fund
7,898,331
10,368,487
17,127,528
22,051,299
23,817,481
23,902,066
29,330,303
44,511,785
62,036,357
73,740,919
92,800,202
All Other Governmental Funds
Restricted:
Highways and streets
871,385
884,657
1,030,489
1,040,487
283,631
545,458
650,231
891,983
1,296,098
1,241,680
998,770
Debt service
1,133,469
938,131
879,996
609,568
325,667
456,077
786,808
1,020,169
500,282
265,351
140,654
Capital projects
3,718,026
474,052
242,592
169,021
25,447
11,574,765
11,563,422
10,074,230
-
-
-
Public safety
3,118,808
3,821,797
3,773,814
2,810,608
2,241,200
2,298,089
3,489,348
6,183,554
10,508,077
11,810,906
12,824,385
Other purposes
-
-
266,943
225,549
-
266,575
176,377
230,807
221,258
275,861
300,037
Nonspendable:
Prepaid items
-
-
-
-
-
-
-
-
-
1,275
-
Assigned for:
Other purposes
382,343
306,810
-
-
-
-
-
-
-
-
-
Total all other
governmental funds
9,224,031
$
6,425,447
$
6,193,834
$
4,855,233
$
2,875,945
$
15,140,964
$
16,666,186
$
18,400,743
$
12,525,715
$
13,595,073
$
14,263,846
$
City of Tolleson, Arizona
(Unaudited)
Table 3
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Accrual Basis of Accounting)
100
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Revenues
Taxes
18,514,067
$
21,730,411
$
23,625,789
$
26,519,434
$
26,406,680
$
30,369,457
$
32,922,112
$
41,653,930
$
51,611,199
$
51,042,946
$
58,448,767
$
Intergovernmental
2,471,590
2,740,020
2,686,665
2,957,255
3,095,010
3,436,410
4,024,435
3,575,547
4,049,096
3,919,988
5,080,237
Fines and penalties
256,498
236,270
272,888
325,149
292,883
283,882
223,321
215,889
197,352
175,831
188,749
Licenses and permits
396,364
462,220
305,411
506,796
650,962
644,556
422,794
770,437
881,248
598,581
1,339,209
Charges for services
521,705
537,114
628,428
1,096,911
1,319,914
1,381,940
1,354,241
3,356,929
5,149,624
2,120,916
2,549,154
Rents and royalties
11,340
11,340
-
-
62,525
47,045
54,054
54,054
69,707
36,339
35,852
Contributions and donations
105,353
126,881
74,790
66,681
40,437
66,619
52,218
1,270,908
66,975
73,179
56,316
Impact fees
370,799
-
-
-
-
-
-
-
-
-
-
Investment earnings
56,800
38,077
146,674
168,706
285,082
838,282
873,182
67,930
(708,714)
1,847,112
3,146,931
Other
35,920
55,702
74,675
88,835
254,617
405,051
585,522
-
-
17,766
16,632
Total revenues
22,740,436
25,938,035
27,815,320
31,729,767
32,408,110
37,473,242
40,511,879
50,965,624
61,316,487
59,832,658
70,861,847
Expenditures
General government
4,415,415
5,078,029
4,826,824
5,631,593
6,688,536
6,692,032
7,500,493
7,752,645
7,672,146
9,477,326
10,380,197
Public safety
9,129,552
9,482,850
10,965,063
11,837,178
13,257,541
13,323,395
13,228,591
13,474,776
13,627,851
17,221,726
19,708,140
Highways and streets
6,866,301
6,137,597
1,360,043
1,382,414
1,694,376
1,989,758
1,973,409
1,492,239
1,489,855
2,468,465
2,342,913
Culture and recreation
1,305,402
1,509,987
1,628,078
1,800,987
2,032,198
2,559,148
3,164,620
2,606,480
3,331,694
4,513,554
4,577,754
Economic development
881,237
725,924
619,344
1,201,318
1,006,559
1,284,470
1,090,113
1,492,553
1,514,864
1,087,317
1,584,795
Health and welfare
366,784
405,236
476,396
457,557
481,220
518,667
631,734
762,709
940,237
937,160
1,209,939
Capital outlay
2,232,168
937,440
1,447,693
2,648,333
4,995,043
8,906,309
3,182,235
3,160,158
18,259,225
8,687,581
9,410,689
Debt service:
Principal retirement
945,000
835,000
785,000
2,035,000
1,406,500
958,100
1,823,715
2,447,563
2,099,604
2,331,279
2,618,557
Interest on long-term debt
839,087
803,637
776,837
744,612
663,188
770,870
1,022,360
881,666
762,035
681,028
621,594
Issuance costs
-
-
-
-
-
226,656
180,388
-
-
-
-
Total expenditures
26,980,946
25,915,700
22,885,278
27,738,992
32,225,161
37,229,405
33,797,658
34,070,789
49,697,511
47,405,436
52,454,578
Excess of revenues
over (under) expenditures
(4,240,510)
22,335
4,930,042
3,990,775
182,949
243,837
6,714,221
16,894,835
11,618,976
12,427,222
18,407,269
(Continued)
City of Tolleson, Arizona
(Unaudited)
Table 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
101
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Other Financing Sources (Uses)
Transfers in
3,751,052
$
3,091,764
$
3,134,362
$
2,596,590
$
1,518,209
$
305,239
$
1,608,678
$
360,569
$
361,148
$
435,021
$
537,328
$
Transfers out
(3,640,552)
(3,374,549)
(3,251,324)
(3,016,589)
(1,657,209)
(330,686)
(1,608,678)
(360,569)
(361,148)
(435,021)
(541,216)
Subscription-based information technology
arrangements
-
-
-
-
-
-
-
-
-
330,328
1,324,675
Proceeds of refunding debt issuance
-
-
-
-
-
-
6,737,000
-
-
-
-
Premium on refunding debt issuance
-
-
-
-
-
-
686,780
-
-
-
-
Proceeds of general obligation bond issuance
-
-
-
-
-
10,850,000
-
-
-
-
-
Premium on general obligation bond issuance
-
-
-
-
-
1,005,367
-
-
-
-
-
Payment to refunded debt escrow agent
-
-
-
-
-
-
(7,190,000)
-
-
-
-
Proceeds from sale of capital assets
8,282
15,023
17,525
14,394
9,520
9,272
5,458
21,204
30,568
16,370
-
Total other financing sources (uses)
118,782
(267,762)
(99,437)
(405,605)
(129,480)
11,839,192
239,238
21,204
30,568
346,698
1,320,787
Net change in fund balance
(4,121,728)
$
(245,427)
$
4,830,605
$
3,585,170
$
53,469
$
12,083,029
$
6,953,459
$
16,916,039
$
11,649,544
$
12,773,920
$
19,728,056
$
Debt Service as a Percentage of
Noncapital Expenditures
7.21%
6.56%
7.29%
10.79%
7.46%
6.90%
9.88%
10.74%
9.13%
7.72%
7.75%
City of Tolleson, Arizona
(Unaudited)
Table 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
102
Fiscal Year
Property
Sales & Use
Franchise
Total
2015
4,120,224
$
17,564,422
$
41,385
$
21,726,031
$
2016
3,988,866
19,592,784
44,139
23,625,789
2017
5,559,669
20,910,251
49,514
26,519,434
2018
4,929,808
21,434,225
42,647
26,406,680
2019
4,873,604
25,448,636
47,217
30,369,457
2020
6,505,244
26,365,478
51,390
32,922,112
2021
7,518,600
34,079,997
55,333
41,653,930
2022
7,982,524
44,451,806
53,575
52,487,905
2023
7,901,803
43,441,037
54,561
51,397,401
2024
8,252,599
50,951,025
54,575
59,258,199
Change
2015-2024
100.3%
190.1%
31.9%
172.8%
Note: This schedule is optional.
(Unaudited)
City of Tolleson, Arizona
Table 5
General Government Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
103
Taxable
Assessed
Value as a
Industrial &
Total Taxable
Total
Estimated
Percentage of
Fiscal
Commercial
Agricultural
Residential
Assessed
Direct Tax
Actual Taxable
Actual Taxable
Year
Property
and Vacant
Property
Others
Value
Rate/Thousand
Value
Value
2015
147,663
$
9,698
$
9,009
$
2,259
$
168,629
$
4
$
168,629
$
100%
2016
172,787
12,297
12,619
1,958
199,661
3.9715
199,661
100%
2017
210,837
12,818
13,974
1,976
239,605
3.9734
239,605
100%
2018
239,361
13,797
15,834
2,264
271,256
3.9895
271,256
100%
2019
264,312
9,810
20,042
1,794
295,958
3.8319
295,958
100%
2020
296,155
10,023
20,844
1,910
328,932
3.7169
328,932
100%
2021
329,937
10,283
26,591
1,908
368,719
3.5259
368,719
100%
2022
349,483
13,048
30,665
2,000
395,196
2.7476
395,196
100%
2023
357,893
11,850
33,933
2,194
405,870
2.6796
405,870
100%
2024
445,459
13,723
48,445
2,535
510,162
2.6421
510,162
100%
(In Thousands of Dollars)
City of Tolleson, Arizona
Table 6
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(Unaudited)
104
General
Flood Control
Obligation
Total
and Water
Fiscal
Basic
Debt
Direct
School
Conservation
Rate
Year
Rate
Service
Rate
District
District
County
Total
2015
1.8309
1.9148
3.7457
N/A
N/A
N/A
3.7457
2016
1.8344
2.1371
3.9715
N/A
N/A
N/A
3.9715
2017
1.8325
2.1409
3.9734
N/A
N/A
N/A
3.9734
2018
1.8325
2.1570
3.9895
N/A
N/A
N/A
3.9895
2019
1.8039
2.0280
3.8319
N/A
N/A
N/A
3.8319
2020
1.7281
2.0280
3.7561
N/A
N/A
N/A
3.7561
2021
1.6584
1.8675
3.5259
N/A
N/A
N/A
3.5259
2022
1.6551
1.0925
2.7476
N/A
N/A
N/A
2.7476
2023
1.5894
1.0902
2.6796
N/A
N/A
N/A
2.6796
2024
1.5504
1.0917
2.6421
N/A
N/A
N/A
2.6421
Source: Maricopa County Finance Department
N/A - Not available at the time of printing
Direct Rates
Overlapping Rates
City of Tolleson, Arizona
Table 7
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(Unaudited)
(Rate per $1,000 of Assessed Value)
105
Percentage
Percentage
of Total
of Total
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
SVC Manufacturing INC
14,858,394
$
1
5.04%
6,672,515
$
3
3.96%
Smiths Food & Drug Centers Inc.
14,075,990
2
4.77%
-
-
-
CLNC NNN Alberts AZ LLC
12,755,371
3
4.32%
-
-
-
FR CAL 3 Tolleson Buckeye LLC
11,844,892
4
4.02%
8,270,397
1
4.90%
Salt River Project (T&D)
9,776,939
5
3.31%
-
-
-
Prologis-Exchange Westside Business Park LLC
8,624,740
6
2.92%
-
-
-
JBS Tolleson Inc.
6,137,313
7
2.08%
-
-
-
SBSS W Jefferson LLC/CI448 W Jefferson LLC
6,081,825
8
2.06%
4,839,775
5
2.87%
Tolleson 70 LLC
5,405,928
9
1.83%
-
-
-
Greater Arizona Auto Auctions Inc.
5,164,002
10
1.75%
-
-
-
LBA Realty Fund III Company IX LLC
-
-
-
7,277,000
2
4.32%
ABS SW Investor LLC (Albertson)
-
-
-
5,164,312
4
3.06%
Cole HD Tolleson AZ LLC
-
-
-
4,531,671
6
2.69%
Freightliner
-
-
-
3,158,309
7
1.87%
Price Company
-
-
-
2,700,459
8
1.60%
91st Avenue Investment Co.
-
-
-
2,481,381
9
1.47%
AZEJM Land Holdings/Oxnard
-
-
-
2,434,102
10
1.44%
Total
94,725,394
$
47,529,921
$
28.18%
Source: Maricopa County Assessor's Office
Note: The schedule should include the ten largest taxpayers, unless fewer are required to reach 50% of the revenue base.
2024
2015
City of Tolleson, Arizona
Table 8
Principal Property Taxpayers
Current and Nine Years Ago
(Unaudited)
106
Fiscal Year
Taxes Levied
Collections
Ratio of Total
Outstanding
Ratio of
Ended
for the
Percent
in Subsequent
Total Tax
Tax Collections
Delinquent
Delinquent
June 30,
Fiscal Year
Amount
of Levy
Years
Collections
to Total Tax Levy
Taxes
Taxes to Levy
2015
6,189,084
$
6,143,072
$
99.26%
-
$
6,143,072
$
99.26%
46,012
$
0.74%
2016
6,563,777
6,563,777
100.00%
-
6,563,777
100.00%
-
-
2017
7,074,915
7,074,915
100.00%
-
7,074,915
100.00%
-
-
2018
7,649,751
7,649,751
100.00%
-
7,649,751
100.00%
-
-
2019
7,941,559
7,909,802
99.60%
-
7,909,802
99.60%
31,757
0.40%
2020
8,542,642
8,423,632
98.61%
-
8,423,632
98.61%
83,510
0.98%
2021
8,651,852
8,463,805
97.83%
76,114
8,539,919
98.71%
148,209
1.71%
2022
7,243,168
7,230,004
99.82%
219,715
7,449,719
102.85%
82,801
1.14%
2023
7,509,399
7,388,285
98.39%
(21,671)
7,366,614
98.10%
52,365
0.70%
2024
7,846,675
7,807,178
99.50%
134,908
7,672,270
97.78%
70,377
0.90%
Source: Maricopa County Finance Department
Collected Within the Fiscal
Total Collections to Date
City of Tolleson, Arizona
Table 9
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
Year of the Levy
107
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Sales Category
Communication and utilities
1,486,385
$
1,484,711
$
1,471,733
$
1,429,106
$
1,472,126
$
1,419,507
$
1,535,042
$
1,600,746
$
1,601,990
$
1,723,914
$
Construction
1,417,419
907,458
1,337,854
1,553,611
2,534,686
1,224,339
1,424,785
3,987,937
4,074,085
4,566,142
Manufacturing
649,799
769,714
973,913
955,024
998,523
680,611
820,935
1,250,592
-
-
Wholesale
3,261,898
4,387,437
3,980,112
3,487,881
3,774,365
3,914,447
4,651,274
5,549,732
-
-
Retail
7,073,146
7,723,550
8,545,050
9,362,838
11,481,732
13,464,737
18,580,686
23,374,584
31,390,227
36,562,074
Real estate
1,851,697
2,150,547
2,085,554
2,454,322
2,528,580
2,654,247
3,653,986
4,341,858
5,230,993
6,477,697
Services
871,641
1,232,577
1,317,928
1,397,260
1,444,529
1,671,286
1,847,042
1,874,043
1,139,756
1,618,228
All other outlets
952,436
936,790
1,198,107
794,183
1,214,095
1,336,304
1,540,419
2,472,314
3,986
2,970
Total
17,564,421
$
19,592,784
$
20,910,251
$
21,434,225
$
25,448,636
$
26,365,478
$
34,054,169
$
44,451,806
$
43,441,037
$
50,951,025
$
City Sales Tax Rate
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
Source: Arizona State Revenue
Note: This schedule requires that governments present revenue information about
their most significant own-source revenue.
City of Tolleson, Arizona
Table 10
Taxable Sales by Category
Last Ten Fiscal Years
(Unaudited)
108
City
Fiscal
Direct
Year
Rate
County
2015
2.50%
8.80%
2016
2.50%
8.80%
2017
2.50%
8.80%
2018
2.50%
8.80%
2019
2.50%
8.80%
2020
2.50%
8.80%
2021
2.50%
8.80%
2022
2.50%
8.80%
2023
2.50%
8.80%
2024
2.50%
8.80%
Source: Arizona State Revenue
Table 11
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
(Unaudited)
City of Tolleson, Arizona
109
General
General
Water
Waste Water
Total
Percentage
Fiscal
Obligation
Revenue
Subscription
Obligation
Revenue
WIFA
Primary
of Personal
Per
Year
Bonds
Bonds
Liabilities
Leases
Bonds
Bonds
Leases
Loan
Government
Income
Capita
2015
11,235
$
7,070
$
-
$
-
$
14,220
$
-
$
-
$
7,750
$
40,275
$
*
5,961
$
2016
10,825
6,929
-
-
11,330
-
-
7,342
36,426
*
5,257
2017
9,180
6,305
-
-
9,485
-
-
6,921
31,891
*
4,443
2018
8,179
5,900
-
-
6,837
-
-
6,486
27,402
*
3,803
2019
18,495
5,475
-
-
3,860
-
-
6,037
33,867
*
4,640
2020
18,227
5,174
-
-
6,156
-
-
5,573
35,130
*
4,765
2021
16,117
4,690
-
-
4,921
-
-
5,094
30,822
*
4,181
2022
14,389
4,172
-
-
4,178
-
-
4,599
27,338
*
3,747
2023
12,580
3,634
200
-
3,402
-
-
4,087
23,903
*
3,293
2024
10,747
3,075
1,152
-
2,604
-
-
3,558
21,136
*
2,947
* Information on personal income from these fiscal years was not available
Business-Type Activities
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Governmental Activities
City of Tolleson, Arizona
Table 12
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
(Dollars in Thousands, Except Per Capita)
110
Taxable
Percentage of
General
Net General
Assessed
Actual Taxable
Fiscal
Obligation
WIFA General
Obligation
Value of
Value of
Per
Year
Bonds
Obligation Loan
Bonded Debt
Property
Property
Population
Capita
2015
29,976
$
4,521
$
34,497
$
168,630
$
20.46%
6,756
5,106
2016
26,438
4,283
30,721
199,661
15.39%
6,929
4,434
2017
22,703
4,038
26,741
239,606
11.16%
6,929
3,859
2018
18,799
3,784
22,583
271,257
8.33%
6,929
3,259
2019
25,877
3,522
29,399
295,958
9.93%
7,299
4,028
2020
24,383
3,251
27,634
328,932
8.40%
7,372
3,749
2021
21,037
2,971
24,008
368,719
7.00%
7,372
3,257
2022
18,567
2,683
21,250
395,196
5.38%
7,295
2,913
2023
15,982
2,384
18,366
405,870
4.53%
7,258
2,530
2024
10,233
2,076
12,309
510,162
2.41%
7,173
1,716
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
a
See Schedule 7 for property value data.
(Dollars in Thousands, Except Per Capita)
Table 13
City of Tolleson, Arizona
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Unaudited)
111
Estimated
General
Estimated
Share of Direct
Obligation Debt
Percentage
and Overlapping
Governmental Unit
Outstanding (a)
Applicable
Debt (b)
Debt Repaid With Property Taxes
Tolleson Elementary School District No. 17
35,015,000
$
70.67
24,745,915
$
Fowler Elementary School District No. 45
5,800,000
9.29
538,825
Littleton Elementary School District No. 65
42,400,000
14.46
6,132,109
Tolleson Union High School District No. 214
258,395,000
17.05
44,056,907
Maricopa County Community College District
57,615,000
0.54
310,523
Maricopa County Special Health Care District
544,135,000
0.54
2,932,679
Western Maricopa Education Center District No. 402
98,510,000
1.44
1,414,400
Subtotal, overlapping debt
80,131,358
City of Tolleson, Arizona Direct Debt
14,974,914
100.00
14,974,914
Total direct and overlapping debt
95,106,272
$
Prepared by: Stifel, Nicolaus & Company, Incorporated.
(a) Includes total stated principal amount of general obligation bonds outstanding. Does not include outstanding
principal amount of certificates of participation, revenue obligations or loan obligations outstanding for the jurisdictions
listed above. Does not include outstanding principal amounts of various County and city improvement districts, as the
bonds of these districts are presently being paid from special assessments against property within the various
improvement districts.
(b) Proportion applicable to the City is computed on the ratio of Net Limited Assessed Property Value for 2022/23.
Source: The various entities, State and County Abstract of the Assessment Roll , Arizona Department of Revenue,
Property Tax Rates and Assessed Values , Arizona Tax Research Association and the Assessor, Office of Budget and
Finance and Treasurer of Maricopa County.
City of Tolleson, Arizona
Table 14
Direct and Overlapping Governmental Activities Debt
June 30, 2024
(Unaudited)
112
Net Assessed Valuation
510,162,118
$
Water, Sewer, Light, Parks, Open Space and Recreational Facility Bonds
Debt limit - 20% of secondary net assessed valuation
102,032,424
$
Debt applicable to limit
General obligation bonds outstanding
9,641,686
$
Less amount set aside for repayment of debt
-
Net debt applicable to limit
9,641,686
20% legal debt margin
92,390,738
All Other General Obligation Bonds
Debt limit - 6% of secondary net assessed valuation
30,609,727
Debt applicable to limit
General obligation bonds outstanding
5,785,847
Less amount set aside for repayment of debt
-
Net debt applicable to limit
5,785,847
All other general obligation bonds debt margin
24,823,880
Total legal debt margin
117,214,618
$
Source: Maricopa County Assessor's Office
City of Tolleson, Arizona
Table 15
Calculation of Legal Debt Margin
June 30, 2024
(Unaudited)
113
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Net Secondary Assessed Valuation
168,629,759
$
199,662,057
$
239,605,939
$
271,256,677
$
295,958,429
$
328,931,929
$
368,719,284
$
395,196,343
$
405,870,380
$
510,162,118
$
Debt Limit
43,843,737
51,912,135
62,297,544
70,526,736
76,949,192
85,522,302
95,867,014
102,751,049
105,526,299
132,642,151
Total net debt applicable to limit
29,738,090
26,192,537
22,702,537
18,798,871
25,876,823
26,166,178
24,008,903
21,249,749
18,366,051
15,427,533
Legal debt margin
14,105,647
$
25,719,598
$
39,595,007
$
51,727,865
$
51,072,369
$
59,356,124
$
71,858,111
$
81,501,300
$
87,160,248
$
117,214,618
$
Total net debt applicable to the limit
as a percentage of debt limit.
67.83%
50.46%
36.44%
26.65%
33.63%
30.60%
25.04%
20.68%
17.40%
11.63%
City of Tolleson, Arizona
Table 16
Legal Debt Margin Information
Last Ten Fiscal Years
(Unaudited)
114
Public
Less
Net
Debt
Debt
Special
Debt
Debt
Fiscal
Safety
Operating
Available
Service
Service
Assessment
Service
Service
Year
Sales Tax
Expenses
Revenue
Principal
Interest
Coverage
Collections
Principal
Interest
Coverage
2015
720
$
-
$
720
$
360
$
345
$
1.02
-
$
-
$
-
$
-
2016
720
-
720
375
332
1.02
-
-
-
-
2017
720
-
720
390
317
1.02
-
-
-
-
2018
720
-
720
405
301
1.02
-
-
-
-
2019
720
-
720
425
284
1.02
-
-
-
-
2020
720
-
720
440
267
1.02
-
-
-
-
2021
678
-
678
420
201
1.09
-
-
-
-
2022
476
-
476
455
167
0.77
-
-
-
-
2023
605
-
605
475
149
0.97
-
-
-
-
2024
626
-
626
495
130
1.00
-
-
-
-
*Revenue Bonds: Public Safety Sale Tax Bonds
Special Assessment Bonds
Revenue Bonds*
City of Tolleson, Arizona
Table 17
Pledged Revenue Coverage
Last Ten Fiscal Years
(Unaudited)
(Dollars in Thousands)
115
Per
Education
Capita
Level in
Calendar
Personal
Personal
Median
Years of
School
Unemployment
Year
Population
Income
Income
Age
Schooling
Enrollment
Rate
2015
6,756
32,196
$
12,934
$
N/A
N/A
N/A
4.80%
2016
6,929
34,485
13,391
N/A
N/A
N/A
4.50%
2017
7,178
31,388
13,588
N/A
N/A
N/A
4.50%
2018
7,205
39,714
16,267
N/A
N/A
N/A
4.50%
2019
7,299
39,714
16,267
N/A
N/A
N/A
4.50%
2020
7,372
42,935
17,269
N/A
N/A
N/A
9.70%
2021
7,372
45,952
17,998
N/A
N/A
N/A
6.60%
2022
7,295
54,494
21,402
N/A
N/A
N/A
2.90%
2023
7,258
48,002
20,173
N/A
N/A
N/A
3.40%
2024
7,173
47,875
20,563
N/A
N/A
N/A
3.40%
Sources: U.S. Department of Commerce for population and Homefacts
(homefacts.com/unemployment/Arizona/Maricopa-County/Tolleson) for unemployment rate.
N/A - Information was not available for these fiscal years
Note : GASB Statement 44 requires that general purpose governments present, at a minimum, population, total and per capita personal income, and unemployment
rate. Governments may add other demographic and economic statistics that are useful and relevant to the user of their financial reports, either in this or in additional
schedules. Median age, education level and school enrollment are optional statistics; however, they are among those most commonly presented by governments.
City of Tolleson, Arizona
Table 18
Demographic and Economic Statistics
Last Ten Fiscal Years
(Unaudited)
116
Percentage
Percentage
of Total City
of Total City
Taxpayer
Employees
Rank
Employment
Employees
Rank
Employment
J.B. Packerland
1,750
1
10.49%
1,100
1
9.53%
Albertsons, Inc.
800
2
4.79%
-
-
-
Atlas Retail Services
660
3
3.95%
530
2
4.59%
Papa Johns Salads Produce
600
4
3.59%
480
3
4.16%
SK Food Group
550
5
3.30%
-
-
-
Pepsico
440
6
2.64%
440
4
3.81%
Carvana Co
440
6
2.64%
-
-
-
Sysco Food Services of Arizona
440
6
2.64%
270
10
2.34%
Salt River Project
360
9
2.16%
330
6
2.86%
Autozone
350
10
2.10%
-
-
-
Rousseau Farming Co.
-
-
-
400
5
3.46%
Ryder Inc. Hillshire Brands
-
-
-
320
7
2.77%
Quiktrip Corp.
-
-
-
280
9
2.43%
Total
6,390
38.30%
4,150
35.95%
Source: Maricopa Association of Governments (MAG), http://geo.azmag.gov/maps/employment/.
2024
2015
City of Tolleson, Arizona
Table 19
Principal Employers
Current and Nine Years Ago
(Unaudited)
117
Function/Program
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General government
46.5
41.0
47.0
48.0
60.0
56.0
55.0
54.0
61.0
79.5
Police
42.0
48.0
49.0
49.0
49.0
49.0
53.0
54.0
61.0
67.0
Fire
33.0
33.0
32.0
32.0
33.0
33.0
33.0
34.0
34.0
35.0
Public works
18.0
19.0
19.0
21.0
22.0
22.0
22.0
23.0
24.0
23.5
Community services
8.0
9.0
8.0
9.0
10.5
12.5
12.5
11.5
19.5
18.5
Water
8.0
11.0
12.0
12.6
14.0
14.0
14.0
14.0
14.0
12.0
Sanitation
1.5
3.0
2.0
-
-
-
-
-
-
-
Wastewater/sewer
24.0
28.0
28.5
27.4
28.5
29.0
28
28.0
30.0
31.0
Total
181.0
192.0
197.5
199.0
217.0
215.5
217.5
218.5
243.5
266.5
Source: City Records
City of Tolleson, Arizona
Table 20
Full-Time Equivalent Employees by Function
Last Ten Fiscal Years
(Unaudited)
118
Function/Program
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Police
Physical arrests
248
293
352
330
404
978
1,064
982
935
1,125
Call for services
11,712
14,650
15,428
15,942
16,560
15,507
17,376
17,901
17,068
17,007
Traffic violations
2,758
3,599
3,433
2,456
1,825
1,263
1,551
1,350
1,983
914
Fire
Emergency responses
2,322
2,636
2,915
3,688
3,701
3,944
4,085
2,993
5,490
5,682
Fires extinguished
135
120
116
1,088
1,099
1,195
1,054
647
313
558
Inspections
116
633
52**
1
24
94
162
218
232
328
Planning and Building Safety
Building permits issued
327
336
383
429
488
429
332
411
892
379
Building inspections conducted
1,460
694*
860*
1,286
1,565
984
1,090
788
1,110
5,776
Transit
Total route miles
6
6
6
6
6
6
6
6
30
30
Sanitation
Refuse collected (tons/day)
8.87
8.46
0.42***
0.54
0.76
11.00
12
7
7.85
5.98
Library
Volumes in collection
23,172
22,894
24,337
23,809
25,210
24,244
42,311
43,886
25,522
28,709
Total volumes borrowed
33,183
29,166
34,419
31,110
39,211
36,281
16,415
19,213
43,716
82,021
Water
New connections
35
19
26
8
59
35
17
36
42
22
Water main breaks
5
7
6
8
4
6
Average daily consumption
(thousands of gallons)
3,000
3,823
3,082
3,940
3,774
4
4
4
4
4
Peak daily consumption
(thousands of gallons)
6,000
7,100
6,480
5,602
5,721
6
5
6
7
5
Wastewater
Average daily sewage treatment
(thousands of gallons)
8,230
5,347
5,353
5,359
5,490
5,739
5,534
6,061
5,910
5,541
* Represents 8 months
** Represents 2 months
*** City outsourced collections to 3rd party in FY 17
Source: City Records
City of Tolleson, Arizona
Table 21
Operating Indicators by Function
Last Ten Fiscal Years
(Unaudited)
119
Function/Program
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Police
Stations
1
1
1
1
1
1
1
1
1
1
Patrol Units
24
24
24
24
22
27
34
34
37
38
Fire Stations
1
1
1
1
1
1
1
1
1
1
Refuse Collection
Collection trucks
6
6
2
2
2
2
2
2
2
2
Other Public Works
Streets (miles)
34
34
34
34
34
34
34
30
30
30
Streetlights
778
778
778
778
944
965
1,071
955
955
955
Traffic signals
12
12
12
13
14
15
15
14
14
14
Parks and Recreation
Acreage
20
20
20
20
24
24
24
29
29
29
Playgrounds
3
4
4
4
4
4
4
4
4
4
Baseball/softball diamonds
3
3
3
3
3
3
3
3
3
3
Soccer/football fields
2
2
2
2
2
2
2
2
2
2
Community/Youth Centers
2
3
3
3
3
2
2
2
2
2
Water
Water mains (miles)
60
60
57
57.75
60
64
64
64.03
64.74
64.81
Fire hydrants
700
700
730
737
748
765
765
768
778
782
Storage capacity (thousands of gallons)
5,250
5,250
5,250
5,250
5,250
5,250
5,250
4,250
Wastewater
Sanitary sewers (miles)
35.03
38.12
38.62
38.62
39.46
40.06
40.06
40.16
40.45
40.46
Storm sewers (miles)
2
2
2
2
2
2
2
2
2
2
Treatment capacity (thousands of gallons)
17,500
17,500
17,500
17,500
17,500
17,500
17,500
17,500
17,500
17,500
Source:City Records
City of Tolleson, Arizona
Table 22
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
(Unaudited)
120
2023-2024
Fiscal Year
Estimated actual valuation
3,493,141,193
$
Net primary assessed valuation
294,932,220
Source: Maricopa County Assessor's Office and Maricopa County Department of Finance
City of Tolleson, Arizona
Table 23
Property Valuations
Fiscal Year Ended June 30, 2024
(Unaudited)
121
Net Secondary
Assessed
Valuations as
Net Secondary
Estimated
Percentage of the
Assessed
Actual
Estimated Actual
Fiscal Year
Valuation
Valuation
Valuation
2023-24
510,162,118
$
3,493,141,193
$
14.60%
2022-23
405,870,380
2,724,681,823
14.90%
2021-22
395,196,343
2,584,491,200
15.36%
2020-21
368,719,284
2,400,108,151
15.36%
2019-20
328,931,929
2,128,581,709
15.45%
2018-19
295,958,429
1,933,298,374
15.31%
2017-18
271,256,677
1,786,258,167
15.19%
2016-17
239,605,939
1,593,519,300
15.04%
2015-16
199,662,057
1,326,288,910
15.05%
2014-15
168,629,759
1,111,077,328
15.18%
Source: Maricopa County Assessor's Office and Maricopa County Finance Department
City of Tolleson, Arizona
Table 24
Secondary Valuations as a Percentage of Estimated Valuations
Last Ten Fiscal Years
(Unaudited)
122
2022-2023
2023-2024
Secondary
2023
Secondary
2024
Legal
Assessed
Percent
Assessed
Percent
Class
Description
Valuation
of Total
Valuation
of Total
1
Utilities Telecommunication and
Commercial and Industrial
357,892,686
$
88.17%
445,458,715
$
87.32%
2
Agricultural and Vacant
11,850,370
2.92%
13,722,612
2.69%
3
Residential (Owner occupied)
18,712,221
4.61%
26,061,836
5.11%
4
Residential (Rental)
15,220,764
3.75%
22,383,102
4.39%
5
Railroad
962,519
0.24%
1,062,182
0.21%
6
Non-commercials
1,231,820
0.30%
1,473,671
0.29%
Total
405,870,380
$
100.00%
510,162,118
$
100.00%
Source: Maricopa County Assessor's Office
City of Tolleson, Arizona
Table 25
Secondary Valuations by Legal Class
June 30, 2024
(Unaudited)
123
Estimated
as a Percent
Estimated
of the City's
Secondary
2023 - 2024
2023 - 2024
Net Secondary
Assessed
Assessed
Taxpayers
Business
Valuation
Valuation
SVC Manufacturing INC
Food Manufacture
14,858,394
$
5.04%
Smiths Food & Drug Centers Inc.
Grocery Retailer
14,075,990
4.77%
CLNC NNN Alberts AZ LLC (Albertsons)
Grocery Retailer
12,755,371
4.32%
FR CAL 3 Tolleson Buckeye LLC
Industrial Property
11,844,892
4.02%
Salt River Project (T&D)
Utility Provider
9,776,939
3.31%
Prologis-Exchange Westside Business Park LLC
Industrial Property
8,624,740
2.92%
JBS Tolleson Inc.
Food Manufacture
6,137,313
2.08%
SBSS W Jefferson LLC/CI448 W Jefferson LLC
6,081,825
2.06%
Tolleson 70 LLC
5,405,928
1.83%
Greater Arizona Auto Auctions Inc.
Auto Auctions
5,164,002
1.75%
Total
94,725,394
$
32.10%
Source: Maricopa County Assessor's Office
City of Tolleson, Arizona
Table 26
Secondary Valuations by Major Taxpayer
June 30, 2024
(Unaudited)
124