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C I T Y O F M E S A , A Z
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
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C I T Y O F M E S A , A Z
DISTRICT MAP
Mayor Mark Freeman
Vice Mayor Scott Somers – District 6
Councilmember Rich Adams – District 1
Councilmember Julie Spilsbury – District 2
Councilmember Francisco Heredia – District 3
Councilmember Jenn Duff – District 4
Councilmember Alicia Goforth – District 5
Scott Butler, City Manager
Marc Heirshberg, Assistant City Manager
Prepared by: Financial Services Department
P.O. Box 1466 Mesa, Arizona 85211-1466 | (480) 644-2275 | www.mesaaz.gov
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
Citizens of Mesa
City Clerk
Holly Moseley
City Court
Stephen Umpleby
Advisory Boards
and Committees
City Attorney
Jim Smith
City Manager
Scott Butler
City Auditor
Joe Lisitano
Mayor and City Council
Deputy
City Manager
Candace Cannistraro
Deputy
City Manager/CFO
Michael Kennington
Assistant
City Manager
Marc Heirshberg
Assistant
City Manager
Ken Cost
Public Information and
Communications
Ana Pereira
Asst. to the City Manager
Ian Linssen
Asst. to the City Manager
Andrea Alicoate
Asst. to the City Manager
Andrew Calhoun
Citywide Fiber
Office of Innovation
and Efficiency
Mayor and Council Support
Diversity and Community
Engagement
Employee and Community
Relations
Education and Workforce
Development
Agenda Management
Updated August 2025
Assistant
City Manager
Brent Stoddard
Special Projects Office
Government Relations and
Grants
Miranda DeWitt
Facilities Management
Tony Miele
Arts and Culture
VACANT
Public Defender Program
Community Services
Ruth Giese
Parks, Recreation and
Community Facilities
Andrea Moore
Library Services
Polly Bonnett
Thriving
Community
Fire and Medical Department
Mary Cameli
Police Department
Dan Butler
Code Compliance
Angelica Guevara
Public Safety
Support Department
Kim Meza
Safe
Community
Transportation
Erik Guderian (Interim)
Engineering
Lance Webb
Energy Resources
Scott Bouchie
Environmental and
Sustainability
Equal Employment
Opportunity Office (EEOO)
Development Services
Nana Appiah
Water Resources
Chris Hassert
Quality
Developments
Falcon Field Airport
Corinne Nystrom
Department of Innovation
and Technology
Scott Conn
Transit
Jodi Sorrell
Office of Urban
Transformation
Jeff McVay
Economic Development
Jaye O’Donnell
Jobs and
Prosperity
Financial Services
Irma Ashworth
Destination Mesa
Business Services
Ed Quedens
Office of Management
and Budget
Brian Ritschel
Fleet Services
Mike Lewis
Solid Waste
Sheri Collins
Fiscal
Responsibility
Liaison to City Court
Human Resources
Teri Overbey
Enterprise Resource
Planning (ERP)
Deferred Compensation
Plan Lead
C I T Y O F M E S A , A Z
INTRODUCTORY SECTION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
TABLE OF CONTENTS
Page
SECTION I – INTRODUCTORY SECTION
Table of Contents
I
Letter of Transmittal
IV
Certificate of Achievement for Excellence in Financial Reporting
XIII
SECTION II - FINANCIAL SECTION
Independent Auditors’ Report
1
Management’s Discussion and Analysis
5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position
17
Statement of Activities
18
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet
19
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position
20
Statement of Revenues, Expenditures and Changes in Fund Balances
21
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
22
Proprietary Funds Financial Statements
Statement of Net Position
23
Statement of Revenues, Expenses and Changes in Net Position
25
Statement of Cash Flows
27
I
TABLE OF CONTENTS
Page
Notes to the Financial Statements
Note 1 – Summary of Significant Accounting Policies
29
Note 2 – Reconciliation of Governmental Fund Financial
Statements to Government-Wide Financial Statements
36
Note 3 – Fund Balance
44
Note 4 – Pooled Cash and Investments
45
Note 5 – Accounts Receivable and Due from Other Governments
48
Note 6 – Interfund Receivables, Payables and Transfers
49
Note 7 – Leases
50
Note 8 – Capital Assets
52
Note 9 – Long-Term Obligations
55
Note 10 – Refunded, Refinanced and Defeased Obligations
67
Note 11 – Self-Insurance Internal Service Fund
67
Note 12 – Commitments and Contingent Liabilities
68
Note 13 – Net Position
69
Note 14 – Enterprise Activities Operations Detail
69
Note 15 – Joint Ventures
70
Note 16 – Pensions and Other Postemployment Benefits
72
Required Supplementary Information
Schedule of the City’s Proportionate Share of Net Pension Liability
Cost-Sharing Pension Plan
87
Schedule of Changes in the City’s Net Pension/OPEB Liability and Related Ratios
Agent Plans
89
Schedule of City Pension Contributions
95
Notes to Pension Plan Schedules
99
Schedule of Changes in the City’s Total OPEB Liability
100
Budgetary Comparison Schedule (Non-GAAP Basis) – Combined Governmental
and Enterprise Fund
102
Notes to Budgetary Comparison Schedules
103
Combining Statements
Non-Major Governmental Funds
Combining Balance Sheet
104
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances
108
Internal Service Funds
Combining Statement of Net Position
112
Combining Statement of Revenues, Expenses and Changes in Net Position
113
Combining Statement of Cash Flows
114
II
TABLE OF CONTENTS
Page
Supplemental Information
Budgetary Comparison Schedules – Other Non-major Funds
Budgetary Comparison Schedule – Cadence Community Facility District
116
Budgetary Comparison Schedule – Eastmark Community Facilities District #1
117
Budgetary Comparison Schedule – Eastmark Community Facilities District #2
118
SECTION III - STATISTICAL SECTION
Financial Trends
Net Position by Components – Last Ten Fiscal Years (Accrual Basis of
Accounting)
119
Changes in Net Position – Last Ten Fiscal Years (Accrual Basis of Accounting)
120
Fund Balance, Governmental Funds – Last Ten Fiscal Years (Modified Accrual
Basis of Accounting)
127
Changes in Fund Balance, Governmental Funds – Last Ten Fiscal Years
(Modified Accrual Basis of Accounting
129
Revenue Capacity
Sales Tax Collections by Category – Last Ten Fiscal Years
131
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years
133
Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years
134
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years
136
Direct and Overlapping Governmental Activities Debt
137
Legal Debt Margin Information – Last Ten Fiscal Years
138
Pledged-Revenue Coverage – Last Ten Fiscal Years
140
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years
142
Principal Employers – Current Year and Nine Years Ago
143
Operating Information
Full-Time Equivalent City Government Employees by Function/Program – Last
Ten Fiscal Years
144
Operating Indicators by Function/Program – Last Ten Fiscal Years
146
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years
148
III
Financial Services Department
December 16, 2025
To the Citizens, Honorable Mayor, City Council and City Manager:
The Annual Comprehensive Financial Report of the City of Mesa (the “City”) for the fiscal year ended
June 30, 2025, is hereby submitted.
Prepared by the Financial Services Department, this report consists of management’s representations
concerning the finances of the City of Mesa. Consequently, management assumes full responsibility for
the completeness and reliability of the information presented in this report. To provide a reasonable basis
for making these representations, management of the City has established a comprehensive internal
control framework that is designed both to protect the government’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 CliftonLarsonAllen, LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the basic financial statements of the City for the fiscal year ended June 30, 2025, 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, 2025, are
fairly presented in conformity with accounting principles generally accepted in the United States of
America. The independent auditor’s report is presented as the first component of the financial section of
this report.
The independent audit of the financial statements of the City was part of a broader, federally mandated
“Single Audit” designed 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 government’s 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 the City’s separately issued Single Audit
Report.
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) and should be read in conjunction with it.
The City’s MD&A can be found immediately following the report of the independent auditors.
IV
Profile of the City
The City was founded in 1878 and incorporated July 15, 1883, with an approximate population of 300
and an area of one square mile. Today, the City’s estimated population, as measured by the US Census
Bureau is 517,151 as compared with the 2020 decennial census count of 504,258. Total land area
encompasses 138.7 square miles. The City is the 36th largest city in the United States and is the third
largest city in the State of Arizona. Mesa is located 16 miles east of Phoenix, the State Capitol. The City
operates under a Council-Manager form of government with citizens electing a Mayor and six
Councilmembers to set policy for the City. City Councilmembers are elected from districts and serve
terms of four years, with three members being elected every two years. The Mayor is elected at-large
every four years. The Mayor and Council are elected on a non-partisan basis, and the Vice Mayor is
selected by the City Council.
The Mayor and City Council are responsible for appointing the City Manager, City Attorney, City
Auditor, City Clerk and the Presiding City Magistrate. The City Manager has full responsibility for
carrying out City Council policies and administering City operations and is responsible for the hiring of
City employees. Additionally, City employees are hired under merit system procedures as specified in
the City Charter.
An allocated staff of 4,801 full-time (equivalent) City employees working within 30 different City
departments undertakes the various functions of Mesa’s city government and its operation. The City
provides a full range of municipal services, including police and fire protection, parks and recreation,
library, transportation, health and certain social services and general administration; and the City owns
and operates enterprises including operations of electric, gas, water, wastewater, solid waste, and an
airport.
Since 1952, Mesa has hosted the Chicago Cubs for Spring Training baseball. In 2014, the Cubs moved
into the newly constructed Sloan Park where they continue to lead Major League Baseball in Spring
Training attendance, averaging approximately 12,643 fans per game. The Athletic’s also call Mesa home
for Spring Training, playing at the renovated Hohokam Stadium.
The annual budget serves as the foundation for the City’s financial planning and control. Historical data
is analyzed during the creation of a multi-year financial forecast. The forecast provides a framework to
assist Mesa’s elected officials and executive team to make important decisions about the direction of the
City.
The City Council sets the City’s long-term strategic direction and provides staff with budget priorities for
the upcoming fiscal year. A proposed budget is presented to the City Council for review and discussion
in mid spring with the final adoption of the operating budget by resolution in late spring. The City of
Mesa begins the fiscal year on July 1st.
Legal control over the budget derives from State statutes that prohibit the City from exceeding its adopted
budget in total, as well as from the resolution that sets the limit. In November 2024, Mesa voters
approved a Permanent Base Adjustment to the State of Arizona’s expenditure limitation, replacing the
previous Home Rule exemption. This adjustment provides the City with greater long-term flexibility in
determining its budget levels, as long as sufficient resources are identified to cover expenses.
The budget is annually appropriated for all funds and consists of all planned expenditures and the
associated resources to cover them. While the State does not require trust fund expenditures to be
appropriated, the City chooses to include them in order to fully represent City activity.
V
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City operates.
Local Economy
The City of Mesa continues to prosper and experience record-setting growth across all areas of the
community, with strong gains in both commercial and residential development. From the revitalized
historic downtown and expanding innovation districts to the advanced manufacturing and technology
corridor in southeast Mesa, the City is realizing one of the fastest-growing local economies in the nation.
Recent economic reports rank Mesa among the top U.S. cities for GDP growth, business expansion, and
infrastructure investment, driven by thriving sectors such as aerospace, technology, healthcare, and
tourism. Guided by a long-term vision for sustainable development, Mesa has established a balanced
approach to growth, strengthening its economic base while ensuring the delivery of high-quality services,
infrastructure, and amenities that support businesses and residents today and for generations to come.
Mesa works to enhance the local economy by fostering a culture of quality, supporting the creation of
higher wage jobs, promoting direct investment, and increasing the prosperity of our residents.
Construction activity provides for revenues that will deliver a variety of significant City capital projects.
Job expansion and higher paying jobs continue to expand the City’s retail sales tax base which allows the
City to support on-going operations. For the fiscal year (FY) ending June 30, 2025, local sales tax
revenue was up 2.6% from the previous fiscal year. Construction sales tax was up 3.7% over the prior
fiscal year. However, in 2024, the Arizona State Legislature ended the local sales tax on residential
rentals. This change reduced one of Mesa’s steady sources of revenue and resulted in no growth for total
sales tax collected for FY 2025.
The City’s economic indicator for residential construction in FY 24/25 was up 4%. During FY 24/25 the
City issued 1,117 permits for new single family residential construction. The commercial valuation came
in at approximately $2.8 billion representing a 75% increase from the prior fiscal year. Consequently, the
total value of construction in FY 24/25 grew by 55%. The corresponding dollar valuation
associated with all FY 24/25 permits grew approximately $1.2 billion from the prior fiscal year.
Conservative budget practices and willingness to respond to economic indicators continue to allow the
City to maintain unrestricted fund balance reserve levels as established in the City’s financial policies.
The FY 2026 budget continues the City’s fiscally conservative approach and reinforces the City’s effort
to invest in economic development, improve public safety and attract and retain excellent employees. All
fund balances were maintained at or above the levels prescribed by financial policy and prudent practice.
Major Initiatives
During the year, various major accomplishments were realized. Some of these were:
•
Mesa’s strong and resilient financial position was recognized this year as Fitch Ratings
reaffirmed the top rating of AAA to the City’s General Obligation (GO) bonds. S&P maintained
their rating of AA for the City’s GO bonds and reaffirmed their A+ rating on the City’s utility
revenue obligations. Moody’s Ratings sustained their As3 rating with a stable outlook on the
City’s utility revenue obligations.
•
In summer of 2024, Virgin Galactic completed its new two-hangar manufacturing facility at
Phoenix-Mesa Gateway Airport, where it will assemble its next-generation Delta spaceships. The
VI
$450,000-per-seat commercial spacecraft—each seating up to six passengers and capable of up to
eight missions per month—will be built and tested in Mesa before being transported to Spaceport
America in New Mexico for flight testing and operations starting in 2026. The Mesa plant, able to
produce up to six ships annually, represents hundreds of high-skilled aerospace jobs and
strengthens Arizona’s growing role as a national space hub alongside its booming semiconductor
and advanced manufacturing sectors.
•
In July, Southern Cross Aviation, a leading aviation parts distributor, opened a new $10 million,
23,599-square-foot facility in Mesa, marking its third U.S. location after Fort Lauderdale and
Anchorage. Strategically located near Phoenix-Mesa Gateway Airport, the site will serve regional
airlines, flight schools, MRO shops, law enforcement, medevac operators, and other aviation
clients across Greater Phoenix. The expansion strengthens Mesa’s position as an aerospace hub,
creating jobs and supporting pilot training programs amid rising demand for aviation
professionals. Company leaders and city officials hailed the move as a boost to the region’s
growing aviation, aerospace, and defense ecosystem.
•
In August, Magna International announced its plans to build out a 230,000 square-foot space at
Power Industrial Park in Mesa representing a “multimillion-dollar investment.” The expansion
by Magna adds to a pipeline of emerging and established firms in an automotive ecosystem in the
Valley. Magna International was the fourth largest auto supplier in the world as of 2023.
•
In August, South Korea-based KoMiCo, a precision cleaning and advanced coatings company
serving the semiconductor industry, purchased a 125,000-square-foot building in Mesa for $17.5
million, marking its third and largest U.S. facility. The $50 million investment is expected to
open in 2026 and create around 200 jobs. KoMiCo, a supplier to Taiwan Semiconductor
Manufacturing Company and Intel, joins dozens of semiconductor-related firms expanding in
Arizona since the 2022 Chips and Science Act.
•
In September, Quantum Industrial Services, LLC, a mechanical and plumbing contractor, leased
135,759 square feet in Mesa for a new pipe fabrication facility serving clients across the Western
U.S. The plant, equipped with advanced technologies, will include 27,000 square feet of office
space and employ about 200 workers. The facility, part of a recently completed industrial park,
underscores Quantum’s growth and expertise in piping fabrication and mechanical services.
•
In October, the Mesa Chamber of Commerce launched Next Phase, a new small business
incubator at Superstition Springs Mall designed to help entrepreneurs test and grow retail
concepts in a live shopping environment. Located on the mall’s second floor, the space can host
up to 15 business owners and opened with three inaugural participants: BG Customs, Blooming
Blinds, and Treats by Tatj. The program pairs participants with Chamber members for
mentorship and partners with local colleges for business training. Supported by several
community sponsors, Next Phase aims to strengthen Mesa’s retail sector and foster long-term
business success, reflecting the Chamber’s ongoing commitment to local economic growth and
innovation.
•
In November, Nucleus RadioPharma, a leader in radiopharmaceutical development and
manufacturing, signed a lease and committed to build a 53,000-square-foot facility in Mesa,
Arizona, creating 50 skilled jobs when it opens in mid-2026. The site will help address a national
shortage of production capacity for theranostic radiopharmaceuticals—advanced treatments that
combine therapy and diagnostics—supporting both clinical trials and commercial supply. Part of
a nationwide expansion that includes a new Philadelphia facility, the Mesa location strengthens
Arizona’s growing bioscience sector and enhances patient access to life-saving cancer therapies.
VII
•
In November, JX Advanced Metals USA, Inc. opened its new 273,000-square-foot advanced
manufacturing plant in Mesa, on a 63-acre site. The facility produces high-performance
sputtering targets for the semiconductor industry, more than doubling the company’s U.S.
capacity and serving customers across the U.S. and Europe. Featuring state-of-the-art production
areas, solar-covered parking, and employee amenities, the Mesa plant establishes the city as JX’s
U.S. hub for advanced materials.
•
In December, The Phoenix-Mesa Gateway Airport Authority officially renamed the East Valley’s
major air travel hub as Mesa Gateway Airport, marking a new era of regional identity and growth.
The change follows Phoenix’s withdrawal from the airport authority earlier in 2023 and reflects
Mesa’s leadership in the airport’s continued expansion. Serving nearly 2 million passengers
annually, Mesa Gateway is Arizona’s third-busiest commercial airport and recently opened a new
30,000-square-foot concourse with five gates. Regional and tourism leaders said the rebranding
highlights the East Valley’s economic vitality and growing appeal as a destination for travelers
and businesses alike.
•
In December, AT&T contributed $70,000 to support Mesa Community College’s EmpowerEd for
Student Success campaign, part of a $20 million Maricopa Community Colleges Foundation
initiative to expand access to higher education and strengthen Arizona’s workforce. The donation
will fund iPad bundles and digital training for 30 first-generation, low- and moderate-income
students through the Mesa College Promise, which covers tuition for eligible Mesa residents. The
EmpowerEd campaign also seeks to raise $1 million for the Mesa College Promise and $500,000
for the Thunderbird Excellence Fund, which assists students facing financial or personal
hardships.
•
In December, Revel Surf Park at Cannon Beach in Mesa officially opened, bringing surfing back
to Arizona for the first time since Big Surf closed in 2019. The $45 million, 4.5-acre attraction
features a two-acre, three-million-gallon surf lagoon powered by patented, energy-efficient wave
technology that creates customizable waves for all skill levels. The park also includes cliff-
jumping platforms, a skate park, restaurants, cabanas, and hot tubs, offering a full resort-style
experience. Built on former farmland using just 2% of the site’s previous water consumption,
Revel Surf Park marks the first phase of the larger Cannon Beach development, which will soon
add restaurants, a theater, and hotels.
•
In December, VIVO Development Partners broke ground on a dual-branded Tempo by Hilton and
Homewood Suites by Hilton at Gallery Park in southeast Mesa, marking a major milestone for the
Mesa’s emerging mixed-use destination. The four-story, 174-room hotel—featuring 97 upscale
lifestyle rooms and 77 extended-stay suites—will include a resort-style pool, fitness areas, event
spaces, and a full-service restaurant and bar. As the first Tempo by Hilton in the region, the
project anchors the 1-million-square-foot Gallery Park development, which also includes luxury
apartments, offices, retail, and restaurants.
•
At the beginning of 2025, Gulfstream Aerospace opened a new 225,000-square-foot, $130
million customer support service center at Mesa Gateway Airport, marking a major expansion of
its maintenance, repair, and overhaul operations in the Western U.S. The facility can service up
to 13 large-cabin aircraft and complements Gulfstream’s existing Mesa west campus, which
accommodates 10 additional aircraft. Already responsible for more than 250 local jobs, with 100
more expected this year, Gulfstream is partnering with local colleges on training, apprenticeships,
and internships to build the region’s aviation workforce. Designed for environmental efficiency
and expected to earn LEED Silver certification, the new center features sustainable materials,
water- and energy-saving systems, and an on-site fuel farm with a 30,000-gallon tank dedicated to
sustainable aviation fuel.
VIII
•
In January, Meta announced that their new data center was now online and serving global traffic,
marking a major milestone in the company’s more than $1 billion investment in Arizona since
breaking ground in 2021. The project employed an average of 2,000 construction workers at
peak and now supports more than 200 operational jobs, with Meta citing Mesa’s strong
infrastructure, renewable energy access, and skilled workforce as key reasons for choosing the
city. In addition to powering its facility with 100% renewable energy and supporting 12 regional
water restoration projects, Meta has invested over $1.3 million in local schools and nonprofits,
including a new $225,000 grant for the Mesa College Promise program and a $75,000 grant to
create a multimedia center at Desert Ridge Junior High.
•
In February, Governor Katie Hobbs and state, education, and industry leaders announced the
launch of Arizona’s newest Future48 Workforce Accelerator, an aerospace and defense-focused
training facility at Chandler-Gilbert Community College’s Williams campus in Mesa. Backed by
over $6 million from the Arizona Commerce Authority, the Accelerator will open in fall 2026 to
train students for high-demand careers in aerospace and defense manufacturing through hands-on
instruction in advanced labs for electrical and mechanical assembly and wiring. Developed in
partnership with Boeing, Honeywell, and other stakeholders, the project strengthens Arizona’s
leadership in aerospace innovation and workforce development, part of the state’s broader $30
million Future48 initiative to expand advanced manufacturing training statewide.
•
In February, Sunbelt Investment Holdings Inc., Okland Construction and CBRE broke ground on
Mesa Grandview Business Park, a 270,000-square-foot, three-building industrial development in
the Falcon District near Loop 202 and Greenfield Road. Set for completion in early 2026, the
project will feature state-of-the-art industrial space with 30–32-foot clear heights, 100% HVAC
warehouses, dock-high and grade-level loading, heavy power, ample parking, and tenant
amenities. Designed with sustainability in mind, the buildings will include skylights, native
landscaping, EV charging stations, LEED certification and solar-ready roofs. City leaders praised
the project as a major boost to economic growth and job creation near Falcon Field and
surrounding aerospace employers, with an additional 22.7 acres available for future development.
•
In March, Mesa Gateway Airport reported its busiest month ever, serving 261,536 passengers, a
24% year-over-year increase that surpassed its previous March record and contributed to eight
record-breaking months in the past year. Airport and regional leaders credited the surge to strong
partnerships with airlines, expanded service offerings, and the airport’s convenience focused
“Just Plane Easy” experience. With flights up 36%, a new five-gate concourse opened last year,
and expanded Allegiant service, Gateway now offers nonstop service to 45 destinations,
continuing to fuel major economic growth.
•
Mesa celebrated a strong 2025 Spring Training season, with the Chicago Cubs leading all MLB
spring training attendance and topping the Cactus League for the 12th consecutive year, while the
Athletic’s saw an impressive 11% increase in turnout. Sloan Park welcomed 227,570 fans—
including a Cactus League record 16,161 attendees on March 8, while HoHoKam Stadium drew
82,636 fans, up from last year’s total. Mesa’s 30 home games accounted for nearly 20% of all
Cactus League attendance, underscoring the city’s popularity as a premier spring baseball
destination.
•
In April, Komatsu broke ground on a new $80 million, 215,000-square-foot facility in southeast
Mesa, tripling its current footprint to better serve customers across the Southwestern U.S. The
state-of-the-art building, located near the airport and slated for completion in summer 2026,
reflects Komatsu’s commitment to supporting Arizona’s growing copper and mining industries.
The project will generate construction jobs and up to 100 long-term positions, further
strengthening the region’s economy and Komatsu’s role in advancing sustainable industrial
growth.
IX
•
In April, Cyclic Materials announced a $20 million investment to build its first commercial rare
earth element (REE) recycling facility in Mesa, Arizona, which will open in early 2026 and create
more than 30 jobs. The state-of-the-art plant will use the company’s proprietary MagCycle℠
process to recover permanent magnets from end-of-life products—materials that were previously
not recycled—establishing the company’s first global REE separation operation and
strengthening a U.S.-wide feedstock network. State and local leaders praised the project as a
boost to Arizona’s clean energy economy, sustainable manufacturing sector, and circular supply
chain development. Backed by a $57 million Series B from investors including Microsoft, BMW
iVentures, Hitachi Ventures and Amazon’s Climate Pledge Fund, Cyclic Materials is expanding
across North America and positioning Mesa as a key hub for innovation in critical materials
recovery.
•
In April, Edged topped out its new 36 MW, waterless-cooled data center in Mesa, Arizona,
marking completion of the facility’s structural framework and moving it toward full operations in
late 2025. The AI-optimized center will feature ultra-efficient ThermalWorks cooling that saves
more than 142 million gallons of water annually and supports high-density compute loads of up
to 200 kW per rack. The milestone ceremony included project partners Haydon Building Corp
and the announcement of Light Source Communications as the first network provider for the site.
Part of Edged’s nationwide expansion, the Mesa facility strengthens the region’s growing AI and
high-performance computing ecosystem.
•
In May, Waymo announced plans for a new 239,000-square-foot autonomous vehicle integration
factory in Mesa, a multimillion-dollar investment that will build thousands of fully autonomous
Jaguar I-PACE vehicles to support the rapid expansion of the Waymo One ride-hailing service,
which already provides more than 250,000 paid trips per week across major U.S. cities.
Developed in partnership with Magna, the facility is expected to create hundreds of local jobs and
will ultimately be capable of producing tens of thousands of autonomous vehicles per year,
including models equipped with the next-generation Waymo Driver. Waymo says the factory
will enable vehicles to be deployed into public service in Phoenix within minutes and to other
cities within hours.
•
In May, Apex Power Conversion opened its new 206,000-square-foot U.S. headquarters and
manufacturing facility in Mesa’s Elliot Road Technology Corridor, an over $60 million
investment that will initially employ up to 300 people, with plans to grow to 700 by 2029. The
site will support customer engagement, product training, and ultimately the manufacturing of
advanced multi-megawatt power conversion systems that integrate renewable energy and storage
into the grid, with full production expected in early 2026.
•
In June, Super Radiator Coils opened a new 150,000-square-foot manufacturing facility in Mesa,
marking a major expansion that will create 125 new jobs across production, engineering, and
administrative roles. The century-old cooling systems manufacturer selected Mesa as part of the
region’s rapidly growing advanced manufacturing ecosystem, joining major players like TSMC
and Lucid. The company is partnering with Mesa Community College and local trade schools on
apprenticeship programs, further boosting workforce development and economic impact.
•
In June, Mesa approved a new agreement allowing developer Soltrust to acquire and restart The
Grid, a long-stalled mixed-use project on three acres at Main Street and Pomeroy. The agreement
clears the project from bankruptcy and paves the way for major revisions—including converting
the partially built first phase into a hotel with a ground-floor Crust Simply Italian restaurant,
speakeasy, and dessert concept.
X
•
In July, Moses Lake Industries (MLI), a global leader in advanced semiconductor chemical
solutions, opened a new 50,000-square-foot, nearly $100 million manufacturing and R&D facility
in Mesa, strengthening the city’s position in Arizona’s fast-growing semiconductor corridor. The
state-of-the-art site will support the development of high-purity electrolyte and copper-based
materials essential to next-generation chip technologies while enabling closer collaboration with
major semiconductor manufacturers through enhanced proximity and dedicated co-development
spaces.
•
Medina Station, a new 64-acre mixed-use destination in East Mesa, is set to become a major
retail, dining, and residential hub with 337,000+ square feet of commercial space and up to 850
multifamily units. Developed by SimonCRE, the project has already pre-leased more than 70%
of its retail space, including anchors Target (148,000 sq ft) and Dick’s Sporting Goods (80,000 sq
ft), along with tenants such as Boot Barn, Einstein Bros. Bagels, Hawaiian Bros, Café Zupas, and
a 39,000-square-foot Restaurant Row featuring local favorites like OSHO. Designed as a
walkable, community-focused destination with plazas and pedestrian connections, Medina Station
will serve a fast-growing trade area of over 83,000 nearby households. Construction began in
early 2025, with the first phase opening in 2026, positioning the development as the future heart
of East Mesa.
•
Arizona State University has completed the $185 million Interdisciplinary Science and
Technology Building 12 (ISTB 12) at its Polytechnic campus in Mesa, a 173,000-square-foot hub
for advanced manufacturing, robotics, semiconductor research, and energy systems. Designed by
SmithGroup and built by McCarthy Building Companies, the state-of-the-art facility anchors the
Ira A. Fulton Schools of Engineering’s School of Manufacturing Systems and Networks and
represents a $250 million investment in the East Valley Innovation Zone. Open for the 2025 fall
semester, ISTB 12 features adaptable labs, sustainable design targeting LEED Gold certification,
and innovative prefabrication methods. The building will host over 100 classes annually, serving
more than 10,000 students and supporting Arizona’s growing advanced manufacturing
ecosystem.
XI
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Mesa
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
C I T Y O F M E S A , A Z
FINANCIAL SECTION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of City Council
City of Mesa, Arizona
Mesa, 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 Mesa,
Arizona (City), as of and for the year ended June 30, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Mesa, Arizona, as of June 30, 2025,
and the respective changes in financial position, and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City 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.
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.
Honorable Mayor and Members of City Council
City of Mesa, Arizona
(2)
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 opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with 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.
Honorable Mayor and Members of City Council
City of Mesa, Arizona
(3)
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the Schedule of the City’s Proportionate Share of Net Pension
Liability, Schedule of Changes in the City’s Net Pension/OPEB Liability and Related Ratios, Schedule
of City Pension Contributions, Schedule of Changes in the City’s Total OPEB Liability, and the
budgetary comparison information 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 GAAS, 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 combining and individual nonmajor fund
financial statements and schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. 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 GAAS. In our opinion, the combining and individual
nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditors’ report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Honorable Mayor and Members of City Council
City of Mesa, Arizona
(4)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 16, 2025, 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.
CliftonLarsonAllen LLP
Phoenix, Arizona
December 16, 2025
Management Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
As management of the City of Mesa, Arizona (the City), we offer this discussion and analysis of the
financial activities of the City for the fiscal year ended June 30, 2025. The reader is encouraged to
consider the information presented here in conjunction with the transmittal letter presented on pages IV -
XI, as well as the financial statements beginning on page 17 and the accompanying notes to the financial
statements.
FINANCIAL HIGHLIGHTS
•
The City’s total revenues of $1.5 billion were comparable to prior years revenue of $1.5 billion.
This is a combination of increases in some revenue streams and decreases in others. The two
larger fluctuations were in Charges for Services (increased by $54.8 million) and Capital Grants &
Contributions (decreased by $45.7 million).
•
The City’s Governmental Funds reported a combined ending fund balance of $1.02 billion, a
$155.2 million increase from the previous year. Approximately 54 percent of the total
governmental fund balance amount, or $554.0 million, is designated by the City as committed,
assigned and unassigned. The remaining 46 percent or $470.8 million is designated as non-
spendable or restricted.
•
The total fund balance for the General Fund was $439.0 million, which represents an increase of
$16.3 million over prior year. The increase is a combination of an increase in Charges for
Services and Investment Income.
•
The City’s Enterprise Fund reported a combined total net position of $495.0 million, which
represents an increase of $20.5 million over the prior year. The increase is primarily due to an
increase in Charges for Services.
OVERVIEW OF THE FINANCIAL STATEMENTS
This Management Discussion and Analysis serves as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components: (1) Government-
Wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Financial statements.
This report also contains other Supplementary Information in addition to the basic financial statements.
Government-Wide Financial Statements
The Government-Wide Financial Statements (pages 17-18) are designed to provide a broad overview of
the City’s finances in a manner similar to private businesses.
The Statement of Net Position presents information on all assets, deferred outflows of resources,
liabilities, and deferred inflows of resources with the difference being reported as net position. Over time
increases and decreases in net position may serve as a useful indicator of whether the financial position
of the City is improving or deteriorating.
The Statement of Activities shows how the net position changed over the most recent fiscal year. All
changes to net position are reported at the time that the underlying event giving rise to the change occurs,
regardless of the timing of the related cash flows. This is the accrual basis of accounting. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods.
Both 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 cost through user fees and charges (Business-
5
Type Activities). The Governmental activities of the City include general government, public safety,
community environment and cultural-recreational. The Business-Type activities include private sector
type activities such as the City-owned utilities (electric, gas, water, wastewater, solid waste and district
cooling), as well as the City-owned airport.
Fund Financial Statements
The fund financial statements (pages 19-28) focus on individual parts of the City government, reporting
the City’s operations in more detail than the Government Wide Financial Statements. They are used to
maintain control over resources that have been segregated for specific activities or objectives and to
ensure compliance with finance-related legal requirements. Fund financial statements are presented for
Governmental Funds and Proprietary 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, the Governmental Funds 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 is useful in evaluating the City’s near-term financing requirements. Since the
Governmental Fund Financial Statements focus on near-term spendable resources, while the
Governmental Activities on the Government-Wide Financial Statements have a longer-term focus, a
reconciliation of the differences between the two is provided with the fund financial statements and in
Note 2 to the basic financial statements.
Proprietary funds are generally used to account for services for which the City charges customers (either
outside customers, or internal departments of the City). Proprietary Funds provide the same type of
information as shown in the Government-Wide Financial Statements only with more detail. Proprietary
funds utilize the same method used by the private sector businesses, the accrual basis of accounting.
The City maintains the following two types of Proprietary Funds:
•
Enterprise Funds are used to report the same functions as Business-Type Activities in the
Government-Wide Financial Statements. The City uses separate funds to account for the
operations of the City-owned utilities (electric, gas, water, wastewater, solid waste and district
cooling), as well as the City-owned airport. The Utility fund is considered a major fund and the
Airport is a non-major Enterprise Fund.
•
The Internal Service Funds are used to account for its fleet support; materials and supplies;
printing and graphics; property and public liability; workers’ compensation; and employee benefits
self-insurance programs. Since the primary customers of the internal service funds are the
Governmental Activities, the assets and liabilities of those funds are included in the Governmental
Activities’ column of the Government-Wide Statement of Net Position. The Internal Service Funds
are combined into a single column on the Proprietary Fund Financial Statements. Individual fund
data for the Internal Service Funds can be found in the combining statements.
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to the full
understanding of the data provided in the Government-Wide and Fund Financial Statements and should
be read with the financial statements. The notes to the financial statements can be found on pages 29-86
of this report.
Required Supplementary Information (RSI)
In addition to the financial statements and accompanying notes, this report presents certain required
supplementary information including the city-wide budgetary comparison schedule, changes in net
pension liability, employer pension contributions, and changes in other post-employment benefits (OPEB)
liability. RSI and accompanying notes can be found on pages 87-103 of this report.
6
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following tables, graphs and analysis discuss the financial position and changes to the financial
position for the City as a whole as of and for the years ending June 30, 2025, and 2024.
Condensed Statement of Net Position
As of June 30
(In thousands of dollars)
Governmental
Activities
Business-Type
Activities
Total
Government
2025
2024
2025
2024
2025
2024
Cash and Other Assets
$ 1,611,204 $ 1,499,081 $ 810,730
$ 788,154
$ 2,421,934
$ 2,287,235
Capital Assets
1,924,520
1,830,466
1,802,262
1,547,985
3,726,782
3,378,451
Total Assets
3,535,724 3,329,547
2,612,992
2,336,139
6,148,716
5,665,686
Deferred Amounts on Refunding
2,264
3,182
15,316
17,828
17,580
21,010
Deferred Outflows on Pensions &
OPEB
308,409 298,479
17,086
15,306
325,495
313,785
Total Deferred Amounts
310,673 301,661
32,402
33,134
343,075
334,795
Non-Current Liabilities, Due Within
One Year
72,339
74,745
68,048
62,666
140,387
137,411
Non-Current Liabilities, Due In
More Than One Year
655,040 524,567
1,653,525
1,434,632
2,308,565
1,959,199
Other Liabilities
211,440 241,780
222,227
187,360
433,667
429,140
Net Pension & OPEB Liability
1,848,574 1,788,214
136,045
136,582
1,984,619
1,924,796
Total Liabilities
2,787,393 2,629,306
2,079,845
1,821,240
4,867,238
4,450,546
Deferred Inflows on Pensions &
OPEB
148,776 167,201
14,965
17,943
163,741
185,144
Deferred Inflows on Leases
46,088
49,952
55,593
55,646
101,681
105,598
194,864 217,153
70,558
73,589
265,422
290,742
Net Investment in Capital Assets
1,377,695 1,317,166
100,008
82,964
1,477,703
1,400,130
Restricted Net Position
415,817 382,409
97,102
122,088
512,919
504,497
Unrestricted Net Position
(929,372) (914,825) 297,881
269,392
(631,491) (645,433)
Total Net Position
$ 864,140 $ 784,750
$ 494,991
$ 474,444
$ 1,359,131
$ 1,259,194
7
Changes in Net Position
Year Ended June 30
(in thousands of dollars)
Governmental
Activities
Business-Type
Activities
Total Government
2025
2024
2025
2024
2025
2024
Program Revenues:
Charges for Services
$ 145,102
$ 132,016
$ 511,700
470,018
$
656,802
$
602,034
Operating Grants &
Contributions
77,909
78,057
339
236
78,248
78,293
Capital Grants & Contributions
8,588
14,618
16,806
56,440
25,394
71,058
General Revenues:
Sales Taxes
330,176
329,821
–
–
330,176
329,821
Property Taxes
46,308
47,924
–
–
46,308
47,924
Occupancy Taxes
6,726
6,837
–
–
6,726
6,837
Unrestricted Intergovernmental
266,556
290,065
–
–
266,556
290,065
Utility Development Fees
–
–
4,067
7,395
4,067
7,395
Contributions
36,803
27,428
–
–
36,803
27,428
Unrestricted Investment
Income (loss)
57,735
46,922
11,550
13,092
69,285
60,014
Gain on Sale of Capital Assets
—
200
—
—
—
200
Miscellaneous
14,321
13,226
12,812
7,783
27,133
21,009
Total Revenues
990,224
987,114
557,274
554,964
1,547,498
1,542,078
Governmental Activities Expenses:
General Government
230,515
225,391
–
–
230,515
225,391
Public Safety
494,279
525,883
–
–
494,279
525,883
Community Environment
193,168
192,205
–
–
193,168
192,205
Cultural-Recreational
113,669
107,468
–
–
113,669
107,468
Interest on Long-Term Debt
17,949
16,793
–
–
17,949
16,793
Business-Type Activities:
Electric
–
–
43,912
49,009
43,912
49,009
Gas
–
–
46,783
46,078
46,783
46,078
Water
–
–
149,731
151,246
149,731
151,246
Wastewater
–
–
97,809
89,096
97,809
89,096
Solid Waste
–
–
51,305
55,972
51,305
55,972
Airport
–
–
6,691
13,302
6,691
13,302
District Cooling
–
–
1,750
1,570
1,750
1,570
Total Expenses
1,049,580
1,067,740
397,981
406,273
1,447,561
1,474,013
Increase (Decrease) in Net
Position Before Transfers
(59,356)
(80,626)
159,293
148,691
99,937
68,065
Transfers
138,746
127,134
(138,746) (127,134)
–
–
Change in Net Position
79,390
46,508
20,547
21,557
99,937
68,065
Net Position - Beginning
784,750
738,242
474,444
452,887
1,259,194
1,191,129
Net Position - Ending
$ 864,140
$ 784,750
$ 494,991
$ 474,444
$ 1,359,131
$ 1,259,194
8
Analysis of Government-Wide Net Position
Net Position consists of (1) Net Investment in Capital Assets, (2) Restricted and (3) Unrestricted. Net
Investment in Capital Assets represents the City’s investment in capital assets, less the related debt. Net
Investment in Capital Assets increased by $75 million from $1.40 billion to $1.48 billion primarily due to an
increase in capital assets in the Business-Type Activities. Restricted Net Position represents resources
that are subject to external restrictions on how they may be used. The Restricted portion of the City's Net
Position increased $79 million from $504.5 million to $512.9 million. The restricted balances that
increased in the current year were primarily for capital projects. The Unrestricted Net Position of $(631.5)
million is primarily due to the impact of the long-term liability associated with pensions and OPEB of ($2.0
billion).
The City’s overall Net Position increased $99.9 million from $1.3 billion to $1.4 billion at the end of fiscal
year 2025. Several factors contributed to the overall increase in Net Position:
•
Charges for Services increased $54.8 million primarily due to an increase in utility sales and
charges. General governmental charges for services also increased in various revenue streams.
•
Investment returns continued strong resulting in an increase in investment income of $9.2 million.
•
Overall expenses (both Governmental and Business-Type) decreased by $26.4 million due to a
Citywide effort to decrease expenses by 2%.
Governmental Activities
In fiscal year 2025, Governmental Activities increased their Net Position by $79.4 million from $784.8
million to $864.1 million. As described above, the increase in Net Position for the Governmental Activities
is due to a combination of an increase in charges for services, investment returns and a decrease in
expenses.
As presented in the following two graphs, the largest funding sources for the governmental activities are
Taxes (42%), Unrestricted Intergovernmental (29%) and Charges for Services (16%). The largest users
of resources for the governmental activities are Public Safety (48%), General Government (22%) and
Community Environment (19%).
9
Governmental Activities
Revenues by Source
Fiscal Year Ended June 30, 2025
Charges for Services 16%
Operating Grants &
Contributions 8%
Capital Grants &
Contributions 1%
Taxes 42%
Unrestricted Contributions 4%
Unrestricted
Intergovernmental
29%
Governmental Activities
Functional Expenses
Fiscal Year Ended June 30, 2025
General Government 22%
Public Safety 48%
Community Environment 19%
Cultural-Recreational 11%
10
The following two graphs compare Governmental Activities revenues and expenses from fiscal year 2025
to fiscal year 2024.
Governmental Activities - Revenues by Source
Two Year Comparison
(In thousands of dollars)
2024
2025
Program Revenues
Taxes
Unrestricted
Intergovernmental
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Governmental Activities - Functional Expenses
Two Year Comparison
(In thousands of dollars)
2024
2025
General
Government
Public Safety
Community
Environment
Cultural-
Recreational
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
11
Fund Financial Statement Analysis
The following is a brief discussion of some of the funds within the Governmental Activities.
General Fund
The General Fund is the primary operating fund of the City and accounts for many of the major functions
of the government including general government, public safety, community environment and cultural-
recreational. The total fund balance of the General Fund was $439.0 million, while unassigned fund
balance was $210.1 million.
The total fund balance of the City’s General Fund increased by $16.3 million during the current fiscal year
from $422.7 million to $439.0 million. The increase is due to Other Financing Sources. The combination
of Transfers in/out and Financing of subscription-based information technology arrangements (SBITAs),
helped offset the Deficiency of Revenues Under Expenditures.
Non-Major Governmental Funds
The Non-Major Governmental Funds include Special Revenue, Capital Project and Debt Service funds.
The fund balance of the Non-Major Governmental funds was $585.9 million, with the majority classified as
Restricted.
Total fund balance of the Non-Major Governmental Funds increased by $139.0 million during the current
fiscal year. This is due to a combination of an increase in the Special Revenue funds ($20.6 million) and
an increase in the Capital Projects funds ($118.78) million.
•
The increase in the Special Revenue funds is primarily due to Sales tax revenue in the Street
Sales Tax fund exceeding expenditures in that fund.
•
Capital Project funds fund balance increased in the Parks, Public Safety and Streets Capital
funds due to the $154.3 million issuance of General Obligation Bonds.
Budgetary Highlights
The City’s annual budget is the legally adopted expenditure control document of the City. The legally
adopted budget is at a citywide level that includes all Governmental and Enterprise Funds. A budget
schedule at the citywide level is presented in the Required Supplementary Information Section. The
schedule compares the original adopted budget, the budget as amended throughout the year, and the
actual expenditures prepared on a budgetary basis.
Budgeted amounts may change within funds and between funds. Transfers between funds or
departmental groups may be made upon City Manager approval and do not require council action (see
Note 1.f. of the notes to the financial statements for more information on budget policies). There were no
budget amendments that increased the overall City adopted budget during fiscal year 2025.
12
Business-Type Activities
The following graphs present utility revenues and expenses for fiscal year 2025. The City’s largest utility,
Water, had a net revenue/expense gain of $116.0 million and Wastewater had a net revenue/expense
gain of $55.7 million, whereas the remaining Utilities saw a more moderate net revenue/expense gain.
Utility Revenues
Charges for Services and Program Expenses
Fiscal Year 2025
(In thousands of dollars)
Charges for Services
Program Expenses
Electric
Gas
Water
Wastewater
Solid Waste
$—
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Total Business-Type Activities program and general revenues increased by $2.3 million from $555.0
million to $557.3 million. While Charges for Services increased by $41.7 million, this was offset by
decrease in Capital Grants & Contributions by $39.6 million.
13
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities amounts to $3.7
billion (net of accumulated depreciation/amortization) as of June 30, 2025. This net investment in capital
assets includes land, buildings, other improvements, machinery and equipment, intangibles,
infrastructure, leases and subscription-based information technology arrangements (SBITAs).
Infrastructure assets are items that are normally immovable and have value only to the City, such as
streets, street lighting systems, and storm drainage systems.
The following table provides a breakdown of the City’s capital assets on June 30, 2025, and 2024:
Capital Assets
(net of accumulated depreciation/amortization)
As of June 30
(In thousands of dollars)
Governmental Activities
Business-Type Activities
Total Government
2025
2024
2025
2024
2025
2024
Land
$
419,761
$
419,761
$
31,786
$
31,786
$
451,547
$
451,547
Infrastructure - Nondepr
3,597
3,597
17,666
17,666
21,263
21,263
Construction-in-Progress
171,426
186,489
412,953
191,396
584,379
377,885
Buildings
408,062
359,751
26,571
27,428
434,633
387,179
Other Improvements
178,495
143,117
33,177
35,205
211,672
178,322
Machinery & Equipment
148,037
117,272
36,636
26,178
184,673
143,450
Intangibles
—
—
3,467
3,579
3,467
3,579
Infrastructure
567,803
577,269
1,240,005
1,214,747
1,807,808
1,792,016
Leases
21,579
21,739
—
—
21,579
21,739
SBITAs
5,760
1,471
—
—
5,760
1,471
Total
$ 1,924,520
$ 1,830,466
$ 1,802,261
$ 1,547,985
$ 3,726,781
$ 3,378,451
The City’s total capital asset balances on June 30, 2025, increased by $348.3 million in comparison with
prior year balances. The largest increase was in Construction in Progress, which increased by $206.5
million. There were several large projects that either started this year or had significant expenses. These
projects included Waterline and Sewer Replacement projects ($37.0 million), the expansion to Signal
Butte Water Treatment Plant ($56.8 million), and Central Mesa Reuse Pipeline ($101.2 million).
Additional information on the City’s capital assets can be found in Note 8 of the notes to the basic
financial statements.
Debt Administration
At the end of the fiscal year 2025, the City had total long-term bond obligations and notes payable
outstanding of $2.2 billion. Of this amount, $456.5 million comprises debt backed by the full faith and
credit of the City, $1.7 billion represents bonds secured by specified revenue sources (i.e., Utility System
Revenue, Highway User Revenue, Sales Tax) and $22.4 million in lease liability and $6.8 million in
SBITAs liability.
The City’s total outstanding debt includes $89 million in Community Facility District (CFD) bonds. Special
Assessment revenues and secondary property tax are collected to make the annual Community Facility
District bond debt payments. The City has no liability for the Community Facility District bonds. However,
14
the City is contingently liable in the event that the Special Assessment revenues are insufficient to satisfy
the Special Assessment Bond debt payments.
The following schedule shows the outstanding long-term debt of the City as of June 30, 2025, and 2024.
Outstanding Long-term Debt
As of June 30
(In thousands of dollars)
Governmental
Activities
Business-Type Activities
Total Government
2025
2024
2025
2024
2025
2024
General Obligation Bonds
$ 456,510
$ 335,990
$
—
$
—
$
456,510
$
335,990
Utility System Revenue Bonds
—
—
997,790
1,063,125
997,790
1,063,125
Utility Revenue Obligations
—
—
610,650
323,975
610,650
323,975
Highway User Revenue Fund
7,660
18,540
—
—
7,660
18,540
Excise Tax Obligations
30,255
31,630
—
—
30,255
31,630
Community Facility District
89,383
92,971
—
—
89,383
92,971
Notes Payable
—
—
667
827
667
827
Leases
22,391
22,077
—
—
22,391
22,077
SBITAs
6,774
1,900
—
—
6,774
1,900
Total
$ 612,973
$ 503,108
$ 1,609,107
$ 1,387,927
$ 2,222,080
$ 1,891,035
The City’s current bond ratings are as follows:
Rating Agency
Standard
and Poor’s
Corporation
Moody’s
Investors
Service
Fitch
Ratings
General Obligation Bonds
AA
Aa2
AAA
Highway User Revenue Bonds
AA
Aa2
N/A
Utility System Revenue Bonds
AA-
Aa2
N/A
Utility System Obligations
A+
Aa3
N/A
Excise Tax Obligations
AA+
Aa2
N/A
Under the provisions of the Arizona Constitution, outstanding general obligation bonded debt for water,
artificial light or sewers, land for open space preserves, parks, playgrounds and recreational facilities,
public safety, fire, streets and transportation may not exceed 20% of a City’s full cash net assessed
valuation, nor may outstanding general obligation bonded debt for all other purposes exceed 6% of a
City’s full cash net assessed valuation.
The City’s total debt margin available on June 30, 2025, was $579.7 million in the 6% capacity and $1.5
billion in the 20% capacity. Additional information on the City’s long-term obligations can be found in Note
9 of the notes to the basic financial statements and Table 10 in the Statistical Section.
15
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
On June 2, 2025, the City Council approved a $2.79 billion budget, which is an increase of $100 million
compared to prior year’s budget. The adopted fiscal year 2026 budget continues the City’s fiscally
conservative approach. The Governmental Funds financial principles include 10%-15% fund balance
over a 5-year forecasted period, sustainability of programs and services, competitive wages and benefits
for employees, and investment in capital and lifecycle replacement projects. The Utility Fund financial
principles includes 20% or higher reserve fund balance, and affordable utility services. The City’s
conservative budget practices and willingness to respond to economic indicators continues to allow the
City to maintain unrestricted fund balance reserve levels as established in the City’s financial policies.
The fiscal year 2025-26 assessed valuation increased 5.5% to $5.2 billion. On June 2, 2025, the City
Council voted to maintain the City’ secondary property tax rate at $0.8582 per $100 assessed valuation.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Mesa, Arizona’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the City of
Mesa Finance Director, P.O. Box 1466, Mesa, Arizona, 85211-1466.
16
C I T Y O F M E S A , A Z
BASIC FINANCIAL SECTION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
Primary Government
Governmental
Activities
Business-
Type
Activities
Total
Assets
Pooled Cash and Investments
$
1,010,082
$
97,763
$ 1,107,845
Accounts Receivable, Net
30,550
52,161
82,711
Lease Receivable
49,536
59,967
109,503
Accrued Interest Receivable
5,159
989
6,148
Due from Other Governments
50,798
5,867
56,665
Inventory
14,646
-
14,646
Prepaid and Deposits
8,018
5,993
14,011
Restricted Assets:
Pooled Cash and Investments
87,039
212,283
299,322
Cash with Fiscal Agent
55,462
88,957
144,419
Cash with Trustee
-
7
7
Accounts Receivable, net
19,740
-
19,740
Due from Other Governments
1,238
-
1,238
Customer Deposits
-
3,623
3,623
Joint Venture Construction Deposits
-
7,119
7,119
Investment in Joint Ventures
278,936
276,001
554,937
Capital Assets, Not Being Depreciated
594,784
462,406
1,057,190
Capital Assets, Being Depreciated, Net
1,329,736
1,339,856
2,669,592
Total Assets
3,535,724
2,612,992
6,148,716
Deferred Outflows of Resources
Debt Refunding
2,264
15,316
17,580
Pensions and OPEB
308,409
17,086
325,495
Total Deferred Outflows of Resources
310,673
32,402
343,075
Liabilities
Accounts Payable and Accrued Liabilities
71,634
21,631
93,265
Claims Payable
39,946
-
39,946
Customer and Defendant Deposits
10,035
-
10,035
Unearned Revenue
30,164
-
30,164
Liabilities Payable from Restricted Assets
59,661
200,596
260,257
Noncurrent Liabilities:
Due Within One Year
72,339
68,048
140,387
Due in More Than One Year:
Lease and SBITA Liability
24,950
-
24,950
Bonds and Notes Payable
582,427
1,647,875
2,230,302
Compensated Absences
47,663
5,650
53,313
Net Pension and OPEB Liability
1,848,574
136,045
1,984,619
Total Liabilities
2,787,393
2,079,845
4,867,238
Deferred Inflows of Resources
Pensions and OPEB
148,776
14,965
163,741
Leases
46,088
55,593
101,681
Total Deferred Inflows of Resources
194,864
70,558
265,422
Net Position
Net Investment in Capital Assets
1,377,695
100,008
1,477,703
Restricted For:
Bond Indentures
-
46,850
46,850
Construction
-
7,119
7,119
Debt Service
48,622
43,133
91,755
Public Safety
118,722
-
118,722
Transportation Programs
230,310
-
230,310
Other Programs
18,163
-
18,163
Unrestricted
(929,372)
297,881
(631,491)
Total Net Position
$
864,140
$
494,991
$ 1,359,131
City of Mesa, Arizona
Statement of Net Position
June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
17
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Functions/Programs:
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities
Total
Governmental Activities:
General Government
$
230,515
$
34,141
$
22,849
$
7,584
$
(165,941) $
-
$
(165,941)
Public Safety
494,279
58,759
19,348
514
(415,658)
-
(415,658)
Community Environment
193,168
25,136
35,407
490
(132,135)
-
(132,135)
Cultural-Recreational
113,669
27,066
305
-
(86,298)
-
(86,298)
Interest on Long-Term Debt
17,949
-
-
-
(17,949)
-
(17,949)
Total Governmental Activities
1,049,580
145,102
77,909
8,588
(817,981)
-
(817,981)
Business-Type Activities:
Electric
43,912
51,377
-
1,032
-
8,497
8,497
Gas
46,783
60,901
-
526
-
14,644
14,644
Water
149,731
205,684
282
9,293
-
65,528
65,528
Wastewater
97,809
110,266
-
4,688
-
17,145
17,145
Solid Waste
51,305
76,885
57
-
-
25,637
25,637
Airport
6,691
5,086
-
1,267
-
(338)
(338)
District Cooling
1,750
1,501
-
-
-
(249)
(249)
Total Business-type Activities
397,981
511,700
339
16,806
-
130,864
130,864
Total Government
$ 1,447,561
$
656,802
$
78,248
$
25,394
(817,981)
130,864
(687,117)
General Revenues:
Sales Taxes
330,176
-
330,176
Property Taxes
46,308
-
46,308
Occupancy Taxes
6,726
-
6,726
Unrestricted Intergovernmental Revenues
266,556
-
266,556
Utility Development Fees
-
4,067
4,067
Unrestricted Contributions
36,803
-
36,803
Investment Income (Loss)
57,735
11,550
69,285
Miscellaneous Revenues
14,321
12,812
27,133
Transfers
138,746
(138,746)
-
Total General Revenues and Transfers
897,371
(110,317)
787,054
Change in Net Position
79,390
20,547
99,937
Total Net Position - Beginning
784,750
474,444
1,259,194
Net Position - Ending
$
864,140
$
494,991
$
1,359,131
City of Mesa, Arizona
Statement of Activities
For the Fiscal Year-Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
18
General
Fund
Total Non-
Major
Governmental
Funds
Total
Governmental
Funds
Assets
Pooled Cash and Investments
$
429,056
$
526,440
$
955,496
Accounts Receivable, Net
24,475
4,756
29,231
Lease Receivable
49,536
-
49,536
Accrued Interest Receivable
1,467
3,530
4,997
Due from Other Governments
17,562
33,236
50,798
Due from Other Funds
4,947
-
4,947
Prepaid Costs
4,523
843
5,366
Restricted Assets:
Pooled Cash and Investments
-
87,039
87,039
Cash with Fiscal Agent
-
55,462
55,462
Accounts Receivable
-
19,740
19,740
Due from Other Governments
-
1,238
1,238
Total Assets
$
531,566
$
732,284
$
1,263,850
Liabilities
Accounts Payable and Accrued Liabilities
$
35,175
$
30,468
$
65,643
Customer and Defendant Deposits
1,694
8,341
10,035
Unearned Revenue
5,237
24,927
30,164
Payable from Restricted Assets:
Accrued Interest Payable
-
10,095
10,095
Matured Bonds Payable
-
49,566
49,566
Total Liabilities
42,106
123,397
165,503
Deferred Inflows of Resources
Unavailable Revenue
4,379
23,034
27,413
Deferred Inflows Related to Leases
46,088
-
46,088
Total Deferred Inflows of Resources
50,467
23,034
73,501
Fund Balance
Nonspendable
4,523
843
5,366
Restricted
-
465,448
465,448
Committed
6,741
26,326
33,067
Assigned
217,638
93,236
310,874
Unassigned
210,091
-
210,091
Total Fund Balances
438,993
585,853
1,024,846
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
$
531,566
$
732,284
$
1,263,850
City of Mesa, Arizona
Balance Sheet
Governmental Funds
June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
19
Fund Balances - total governmental funds
$
1,024,846
Amounts reported for governmental activities in the statement of net position are
different because (also see Note 2 to the basic financial statements):
Capital Assets used in governmental activities are not financial resources and
therefore not reported in governmental funds.
1,914,481
Other assets used in governmental activities are not financial resources and
therefore not reported in the governmental funds.
279,404
Deferred outflows related to deferred amounts on refunding and pensions are
not financial resources and therefore not reported on the funds.
306,324
Long-term liabilities, including bonds payable, lease liabilities and net pension
liabilities are not due and payable in the current period and therefore not
reported in the governmental funds.
(2,534,675)
Deferred inflows relating to pensions represent a future acquisition on net
position that is not reported in the funds. Also, because the focus of
governmental funds is on short-term financing, some assets will not be
available to pay for current period expenditures. Those assets are offset by
unavailable revenue in the funds.
(116,738)
Internal service funds are used by management to charge the costs of certain
activities to individual funds.
(9,502)
Net position of the governmental activities - statement of net position
$
864,140
City of Mesa, Arizona
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
20
General Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Revenues
Sales Taxes
$
198,335
$
131,841
$
330,176
Property Taxes
-
46,543
46,543
Occupancy Taxes
2,384
4,342
6,726
Special Assessments
-
1,737
1,737
Licenses and Permits
40,372
3,933
44,305
Intergovernmental
227,941
125,112
353,053
Charges for Services
66,959
24,699
91,658
Fines and Forfeitures
6,382
1,866
8,248
Investment Income
23,488
31,276
54,764
Contributions
13
44
57
Miscellaneous Revenue
6,120
5,875
11,995
Total Revenues
571,994
377,268
949,262
Expenditures
Current:
General Government
139,392
21,502
160,894
Public Safety
356,180
82,379
438,559
Community Environment
30,678
95,879
126,557
Cultural-Recreational
68,658
19,283
87,941
Debt Service:
Principal
5,713
49,707
55,420
Interest
753
19,361
20,114
Service Charges
-
13
13
Cost of Issuance
-
772
772
Capital Outlay
24,435
187,207
211,642
Total Expenditures
625,809
476,103
1,101,912
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(53,815)
(98,835)
(152,650)
Other Financing Sources (Uses)
Transfers In
144,428
74,445
218,873
Transfers Out
(85,832)
(5,739)
(91,571)
Proceeds from Sale of Capital Asset
357
211
568
Face Amount of Bonds Issued
-
154,266
154,266
Financing of SBITA
11,123
-
11,123
Premium on Issuance of Bonds (Net)
-
14,622
14,622
Total Other Financing Sources (Uses)
70,076
237,805
307,881
Net Change in Fund Balances
16,261
138,970
155,231
Fund Balance - Beginning
422,732
446,883
869,615
Fund Balances - Ending
$
438,993
$
585,853
$
1,024,846
City of Mesa, Arizona
Statement of Revenues, Expenditures
and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
21
Net change in fund balances - total governmental funds
$
155,231
Amounts reported for governmental activities in the statement of activities are
different because (also see Note 2 to the basic financial statements):
Revenues in the statement of activities that do not provide current financial
resources are not reported in the governmental funds.
1,245
Some 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.
(39,685)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the costs of those assets are allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlay $163,058 exceeded depreciation/amortization
($78,738) in the current period.
84,320
Governmental funds report capital outlays for lease and SBITAs as
expenditures. However, in the statement of activities, the costs of those assets
are allocated over their estimated useful lives and reported as amortization
expense. This is the amount by which capital outlay $11,123 exceeded
amortization ($6,900) in the current period.
4,223
The net effect of miscellaneous transactions involving capital assets (e.g.,
donations, transfers and disposals) is to decrease net position.
(346)
Change in equity in Joint Venture
(8,836)
The issuance of long-term debt and financing of leases provides current
financial resources to governmental funds, while the repayment of principal of
long-term debt consumes financial resources of governmental funds. Neither
transaction has any effect on net position.
(109,969)
Governmental funds report the effect of premiums and deferred amounts
related to refunding when the new debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
(11,672)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue (expense) of certain internal
service funds is reported with governmental activities.
4,879
Change in net position of the governmental activities - statement of activities
$
79,390
City of Mesa, Arizona
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
22
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service Funds
Assets
Current Assets:
Pooled Cash and Investments
$
92,445 $
5,318
$
97,763 $
54,586
Accounts Receivable, Net
51,360
801
52,161
1,308
Lease Receivable
-
59,967
59,967
-
Accrued Premiums Receivable
-
-
-
11
Accrued Interest Receivable
964
25
989
162
Due from Other Governments
5,480
387
5,867
-
Inventory
-
-
-
14,646
Prepaid and Deposits
5,993
-
5,993
2,184
Restricted Assets:
Pooled Cash and Investments
211,107
1,176
212,283
-
Cash with Fiscal Agents
88,957
-
88,957
-
Cash with Trustees
7
-
7
-
Customer Deposits
3,623
-
3,623
-
Joint Venture Construction Deposits
7,119
-
7,119
-
Total Current Assets
467,055
67,674
534,729
72,897
Noncurrent Assets:
Investment in Joint Ventures
276,001
-
276,001
-
Capital Assets, Not Being Depreciated
452,205
10,201
462,406
121
Capital Assets, Being Depreciated, Net
1,321,882
17,974
1,339,856
9,918
Total Noncurrent Assets
2,050,088
28,175
2,078,263
10,039
Total Assets
2,517,143
95,849
2,612,992
82,936
Deferred Outflows of Resources
Debt Refundings
15,316
-
15,316
-
Pensions and OPEB
16,661
425
17,086
4,349
Total Deferred Outflows of Resources
31,977
425
32,402
4,349
City of Mesa, Arizona
Statement of Net Position
Proprietary Funds
June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
23
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service Funds
Liabilities
Current Liabilities - Payable From Current Assets:
Accounts Payable and Accrued Liabilities
$
21,450 $
181
$
21,631 $
5,991
Claims Payable
-
-
-
39,946
Due to Other Funds
-
-
-
4,947
Current Liabilities-Payable From Restricted
Accounts Payable and Accrued Liabilities
50,664
68
50,732
-
Interest Payable
29,327
-
29,327
-
Matured Bonds Payable
59,630
-
59,630
-
Customer Deposits and Prepayments
60,220
687
60,907
-
Current Portion of Long-Term Liabilities:
Current Portion of Bonds Payable
64,755
-
64,755
-
Current Portion of Notes Payable
163
-
163
-
Current Portion of Compensated Absences
784
32
816
236
Current Portion of OPEB Liability
2,263
51
2,314
785
Total Current Liabilities
289,256
1,019
290,275
51,905
Long-Term Liabilities:
Bonds Payable
1,647,371
-
1,647,371
-
Notes Payable
504
-
504
-
Compensated Absences
5,432
218
5,650
1,149
Net Pension and OPEB Liability
132,802
3,243
136,045
39,108
Total Long-Term Liabilities
1,786,109
3,461
1,789,570
40,257
Total Liabilities
2,075,365
4,480
2,079,845
92,162
Deferred Inflows of Resources
Pensions and OPEB
14,618
347
14,965
4,625
Deferred Inflows Related to Leases
-
55,593
55,593
-
Total Deferred Inflows of Resources
14,618
55,940
70,558
4,625
Net Position
Net Investment in Capital Assets
71,833
28,175
100,008
10,039
Restricted For:
Bond Indentures
46,850
-
46,850
-
Construction
7,119
-
7,119
-
Debt Service
43,133
-
43,133
-
Unrestricted
290,202
7,679
297,881
(19,541)
Total Net Position
$
459,137 $ 35,854
$
494,991 $
(9,502)
City of Mesa, Arizona
Statement of Net Position
Proprietary Funds
June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
24
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service Funds
Operating Revenues:
Electric Charges
$
51,377
$
-
$ 51,377
$
-
Gas Charges
60,901
-
60,901
-
Water Sales
205,684
-
205,684
-
Wastewater Charges
110,266
-
110,266
-
Solid Waste Charges
76,885
-
76,885
-
Airport Fees
-
5,086
5,086
-
District Cooling Charges
1,501
-
1,501
-
Charges For Services
-
-
-
45,662
Self-Insurance Contributions
-
-
-
125,109
Other Revenue
-
-
-
13,310
Total Operating Revenues
506,614
5,086
511,700
184,081
Operating Expenses:
Electric
37,881
-
37,881
-
Gas
34,310
-
34,310
-
Water
89,666
-
89,666
-
Wastewater
54,610
-
54,610
-
Solid Waste
48,415
-
48,415
-
Airport
-
4,896
4,896
-
District Cooling
1,431
-
1,431
-
Warehouse, Maintenance & Services
-
-
-
44,590
Self-Insurance
-
-
-
148,615
Total Operating Expenses
266,313
4,896
271,209
193,205
Operating Income (Loss) Before
Depreciation and Amortization
240,301
190
240,491
(9,124)
Depreciation and Amortization
(63,800)
(1,795)
(65,595)
(416)
Operating Income (Loss)
176,501
(1,605)
174,896
(9,540)
City of Mesa, Arizona
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
25
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service
Funds
Nonoperating Revenues (Expenses):
Investment Income
$
11,147
$
403
$ 11,550
2,971
Intergovernmental
339
-
339
-
Lease Interest Revenue
-
1,379
1,379
-
Interest Expense:
Bonds
(51,235)
-
(51,235)
-
Notes Payable
(18)
-
(18)
-
Lease
-
-
-
(1)
Gain/(Loss) on Sale of Capital Assets
(205)
-
(205)
5
Net Gain/(Loss) from Joint Venture
(8,797)
-
(8,797)
-
Utility Development Fees
4,067
-
4,067
-
Bond Issuance Costs
(922)
-
(922)
-
Miscellaneous Revenue
11,306
127
11,433
-
Total Nonoperating Revenues (Expenses)
(34,318)
1,909
(32,409)
2,975
Income before Transfers and Capital Contributions
142,183
304
142,487
(6,565)
Capital Contributions
15,539
1,267
16,806
-
Transfers In
-
-
-
11,556
Transfers Out
(138,733)
(13)
(138,746)
(112)
Change in Net Position
18,989
1,558
20,547
4,879
Total Net Position - Beginning
440,148
34,296
474,444
(14,381)
Total Net Position - Ending
$ 459,137
$
35,854
$ 494,991
$
(9,502)
City of Mesa, Arizona
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
26
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service Funds
Cash Flows From Operating Activities:
Cash Received From Customers
$ 510,696
$
3,278
$ 513,974
$
-
Cash Received From Users
-
-
-
183,440
Cash Payments to Suppliers
(213,524)
(4,384)
(217,908)
(189,938)
Cash Payments to Employees
(49,361)
(1,889)
(51,250)
(10,648)
Other Nonoperating Revenue
11,306
127
11,433
-
Net Cash Provided by (Used For) Operating Activities
259,117
(2,868)
256,249
(17,146)
Cash Flows From Noncapital Financing Activities:
Intergovernmental
(4,852)
1,968
(2,884)
-
Interfund Payable Increase
-
-
-
1,395
Transfers In from Other Funds
-
-
-
11,556
Transfers Out to Other Funds
(138,733)
(13)
(138,746)
(112)
Net Cash Provided by (Used For)
Noncapital Financing Activities
(143,585)
1,955
(141,630)
12,839
Cash Flows From Capital and Related Financing
Activities:
Proceeds From Bond Sales
308,288
-
308,288
-
Proceeds From Sale of Capital Assets
124
-
124
-
Acquisition and Construction of Capital Assets
(284,157)
(2,847)
(287,004)
(6,299)
Proceeds from the Sale of Capital Assets
-
-
-
5
Principal Paid on Bonds and Notes Maturities
(72,505)
-
(72,505)
-
Principal Paid on Lease
-
-
-
(78)
Interest Paid on Bonds and Notes
(61,281)
-
(61,281)
-
Interest Income/(Expense) on Leases
-
1,379
1,379
(3)
Bond Issuance Costs
(922)
-
(922)
-
Contributions and Capital Grants
7,942
1,268
9,210
-
Net Cash Used For Capital and
Related Financing Activities
(102,511)
(200)
(102,711)
(6,375)
Cash Flows From Investing Activities:
Interest Received on Investments
11,061
406
11,467
3,061
Net Cash Provided By Investing Activities
11,061
406
11,467
3,061
Net Change in Pooled Cash and Investments
24,082
(707)
23,375
(7,621)
Total Cash and Investments at Beginning of Year
368,434
7,201
375,635
62,207
Total Cash and Investments at End of Year
$ 392,516
$
6,494
$ 399,010
$
54,586
City of Mesa, Arizona
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
27
Business-Type Activities
Governmental
Activities
Utility
Non-Major
Fund
Airport
Total
Internal
Service Funds
Reconciliation of Operating Income (Loss) to Net
Cash
Provided by (Used For) Operating Activities:
Operating Income (Loss)
$ 176,501
$
(1,605)
$ 174,896
$
(9,540)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided By (Used By) Operating
Activities:
Depreciation and Amortization
63,800
1,795
65,595
416
Miscellaneous Revenue
11,306
127
11,433
-
Changes in Assets and Liabilities:
(Increase)/Decrease in Receivables
(2,486)
(1,808)
(4,294)
(641)
(Increase)/Decrease in Inventory
-
-
-
(2,662)
(Increase)/Decrease in Prepaid and Deposits
5,871
69
5,940
(350)
(Increase)/Decrease in Deferred Outflows
(1,739)
(41)
(1,780)
(214)
Increase/(Decrease) in Accounts Payable
8,719
(1,173)
7,546
1,014
Increase/(Decrease) in Pension and OPEB Liability
(160)
(103)
(263)
959
Increase(/Decrease) in Deferred Inflows
(2,918)
(113)
(3,031)
(1,049)
Increase/(Decrease) in Compensated Absence
223
(16)
207
(5,079)
Total Adjustments
82,616
(1,263)
81,353
(7,606)
Net Cash Provided By (Used For) Operating Activities
$ 259,117
$
(2,868)
$ 256,249
$
(17,146)
Noncash Transactions Affecting Financial Position:
Contributions of Capital Assets
$ (11,664)
$
-
$ (11,664)
$
-
Gain (Loss) on Sale of Capital Assets
(205)
-
(205)
-
Amortization of Bond Premium
10,208
-
10,208
-
Amortization of Deferred Amounts on Refunding
(2,512)
-
(2,512)
-
City of Mesa, Arizona
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
(in thousands)
The accompanying notes are an integral part of these financial statements.
28
The City of Mesa, Arizona, (the City) was incorporated July 15, 1883, with an approximate population of
300 and an area of one square mile. The City’s population as of the 2020 census is 504,258 within an
area of approximately 138 square miles. The City’s charter was adopted August 18, 1967, providing for a
Council-Manager form of government. The City provides a full range of municipal services including police
and fire protection, parks and recreation, library and transportation. In addition, the City owns and
operates an airport and a utility whose activities include operations of electricity, gas, water, wastewater,
solid waste and district cooling.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America (“GAAP”) as applied to governmental units. The
Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
The City’s other significant accounting policies are described below:
a. Reporting Entity
The accompanying financial statements include the City and its blended component units, Eastmark and
Cadence Community Facilities Districts, collectively referred to as “the financial reporting entity”. In
accordance with GASB Statement No. 14, and as amended by GASB Statements No. 61 and No. 80, the
component units discussed below have been included in the City’s reporting entity because of the
significance of their operational or financial relationship with the City.
Community Facilities District (“Districts”) The City has three municipal corporation political
subdivisions of the State of Arizona that are organized to provide a vehicle for financing certain public
infrastructure that is necessary for development of the land within the boundaries of the Districts. The
City Council serves as the board of directors of the Districts and the City Manager currently serves as the
Manager of the Districts.
Although the Districts are legally separate from the City, the Districts are reported as if they are part of the
primary government because the District’s governing body is substantively the same as the governing
body of the City and management of the City has operational responsibility for the Districts. Separate
financial statements for Eastmark Community Facilities District #1 can be obtained from the City’s
Finance Department, through Accounting Services at 20 E. Main Street, 3rd Floor, Mesa, Arizona 85211.
Separate financial statements for Eastmark Community Facilities District #2 and Cadence Community
Facilities District are not prepared.
b. Jointly Governed Organizations
Phoenix – Mesa Gateway Airport Authority (“PMGAA”) is a Joint-Powers Airport Authority established
and funded by the City, the City of Phoenix, the Towns of Gilbert and Queen Creek, and the Gila River
Indian Community. The purpose of the entity is the redevelopment of Williams Air Force Base that was
closed in September of 1993 to become PMGAA. The Board of Directors consists of the mayors for the
respective municipalities and the governor of the tribal community. The City contributed $1.7 million to the
PMGAA operating and capital budget during this fiscal year.
Valley Metro Regional Public Transportation Authority (“the Authority”) is a voluntary association of
local governments, including the cities of Mesa, Tempe, Scottsdale, Glendale, Phoenix and Maricopa
County. Its purpose is to create a regional public transportation plan for Maricopa County. The Board of
Directors consists of the mayors of those cities and a member of the County Board of Supervisors.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
29
Arizona Municipal Water Users Association (“AMWUA”) is a nonprofit corporation established and
funded by cities in Maricopa County for the development of an urban water policy and to represent the
cities’ interests before the Arizona legislature. In addition, AMWUA performs certain accounting,
administrative and support services for the cities who are jointly using the 91st Avenue Water Treatment
Plant.
c. Basic Financial Statements
Government-Wide Financial Statements: The Government-Wide Financial Statements (the Statement
of Net Position and the Statement of Activities) report on the City as a whole. Governmental Activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
Business-Type Activities, which rely to a significant extent on fees and charges for services. As a general
rule, the effect of interfund activity has been eliminated from the Government-Wide Financial Statements;
the exception is any interfund activity between Governmental and Business-Type Activities, such as
transfers. Interfund services provided and used are not eliminated.
The Statement of Net Position reports all financial and capital resources of the City. It is presented in a
format of assets plus deferred outflows of resources less liabilities less deferred inflows of resources
equal net position, with the assets and liabilities shown in order of their relative liquidity. Net position is
required to be presented in three components: net investment in capital assets, restricted and
unrestricted. Net investment in capital assets is capital assets net of accumulated depreciation and
reduced by outstanding balances of bonds, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets. Restricted net position are those with
constraints placed on their use externally either imposed by creditors (such as bond covenants), grantors,
contributors, laws or regulations of other governments or imposed by law through constitutional provisions
or enabling legislation. Unrestricted net position are those not otherwise classified as restricted and are
shown as unrestricted. Generally, the City would first apply restricted resources when an expense is
incurred for purposes for which both restricted and unrestricted net position is available.
The Statement of Activities demonstrates the degree to which the direct expenses of the various
functional activities of the City are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific functional activity (General Government, Public Safety, Cultural-Recreational,
etc.). Expenses reported for the various functional activities include indirect expenses, such as overhead
costs. Interest on long-term debt is not allocated to the various functions in the Governmental Activities.
Program revenues include charges to customers or applicants who directly benefit from goods, services
or privileges provided by a given function. Program revenues also include grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function, including special
assessments. Taxes and other items not properly included as program revenues are reported as general
revenues. The general revenues support the net costs of the functions not covered by program revenues.
Fund Financial Statements: The fund financial statements are, in substance, very similar to the financial
statements presented in the previous model. Separate financial statements are provided for governmental
funds and proprietary funds. The focus of the fund financial statements is on major funds, as defined by
GASB Statement No. 34. Major individual governmental funds are reported as separate columns in the
fund financial statements. The City has two enterprise funds. The Utility Fund is reported as a major fund
and the Airport Fund is a Non-Major Fund. Non-Major Governmental Funds, as well as the Internal
Service Funds, are summarized into a single column on the fund financial statements and are detailed in
combining statements included as Supplementary Information.
d. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements: The Government-Wide Financial Statements are reported
using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
30
of related cash flows. Grants and similar items are recognized as revenues as soon as all eligibility
requirements imposed by the provider have been met.
Governmental Fund Financial Statements: The Governmental Fund Financial Statements are reported
using the current financial resources measurement focus and modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become susceptible to accrual, i.e.,
measurable and available to finance the City’s operations. Available means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current period. The City considers
revenues to be available if they are collected within 60 days of the end of the current period. Principal
revenue sources considered to be susceptible to accrual are City sales taxes, property taxes,
intergovernmental revenues and interest on investments.
In applying the susceptible to accrual concept to intergovernmental revenues pursuant to GASB
Statement No. 33, receivables and revenues are recognized when all the applicable eligibility
requirements, including time requirements, have been met. Resources transmitted before the eligibility
requirements are met are reported as unearned revenue. Expenditure-driven grants are recognized as
revenue when the qualifying expenditures have been incurred and all other grant requirements have been
met.
City sales taxes, State shared revenues, including sales and income taxes, highway user and auto lieu
taxes, and lottery distributions for transportation assistance, which are collected and held by the State at
year-end, on behalf of the City, are also recognized as revenue. Special assessments are recognized as
revenue only to the extent that individual installments are considered current assets. Annual installments
not currently receivable are reflected as unavailable revenue.
Licenses and permits, charges for services and miscellaneous revenues are recorded as revenue when
received as cash because they are generally not available until actually received. Changes in the fair
value of investments are recognized in revenue at the end of each year.
Expenditures are generally recognized when the related fund liability is incurred, as under accrual
accounting.
Since the Governmental Fund Financial Statements are presented on a different measurement focus and
basis of accounting than the Government-Wide Financial Statements, a reconciliation is presented on the
page following each Governmental Fund Financial Statement, which briefly explains the adjustments
necessary to transform the fund-based financial statements into the Governmental Activities column of the
Government-Wide Financial Statements. Additional reconciliations are also provided in Note 2.
Proprietary Funds Financial Statements: The financial statements of the Proprietary Fund are reported
using the economic resources measurement focus and accrual basis of accounting, similar to the
Government-Wide Financial Statements described above.
The Proprietary Fund Financial Statements distinguish operating revenues and expenses from non-
operating 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. All
revenues and expenses not meeting this definition, such as investment income and interest expense are
reported as non-operating revenues and expenses.
Internal Service Funds of the City, which provide services primarily to the other funds of the City, are
presented in summary form as part of the Proprietary Fund Financial Statements. Since the principal
users of internal services are the City’s Governmental Activities, financial statements of the internal
service funds are consolidated into the Governmental Activities column when presented at the
government-wide level. The costs of these services are reflected in the appropriate functional activity on
the Statement of Activities and the revenues and expenses within the Internal Service Funds are
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
31
eliminated from the Government-Wide Financial Statements to avoid any doubling up effect of these
revenues and expenses.
e. Fund Accounting
The financial transactions of the City are recorded in individual funds. Each fund is accounted for by
providing a separate set of self-balancing accounts that comprises its assets, liabilities, fund equity,
revenues and expenditures/expenses. The various funds are reported by generic classification within the
fund financial statements. GASB Statement No. 34 sets forth minimum criteria for the determination of
major funds. The non-major funds are combined in a column in the fund financial statements and detailed
in the combining section.
The City reports on the following major Governmental Funds and Proprietary Funds:
Major Governmental Funds:
The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Major Proprietary (Enterprise) Fund:
The Utility Fund has been established to account for all utility functions. This includes the City-
owned electric, gas, water, wastewater and solid waste systems, plus district cooling.
Non-major Governmental Funds:
Twelve Special Revenue Funds are used to account for specific revenues that are legally
restricted to expenditures for specific purposes.
Five Capital Project Funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary funds.
Four Debt Service Funds are used to account for the accumulation of resources for the
payment of long-term obligation principal, interest, and service charges.
Proprietary Funds:
The Airport Fund is a Non-major Enterprise Fund and is used to account for the City-owned
airport.
Internal Service Funds are used to account for operations that provide services to other
departments of the government on a cost-reimbursement basis. These services include fleet
support, materials and supply, printing and graphics, self-insurance for property and public
liability, workers’ compensation and employee benefit programs.
f. Budgets and Budgetary Accounting
Each year the City Manager issues a budget calendar giving specific completion dates for various phases
of the budget preparation process. Prior to June 1, the City Manager submits a proposed operating
budget to the City Council for the fiscal year commencing the following July 1. The operating budget
includes proposed expenditures and the means of financing them. Public hearings are conducted by the
City to obtain citizen comments. Prior to June 30, the budget for the ensuing year is legally adopted
through passage of an ordinance; these appropriations lapse at the end of each fiscal year.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
32
Legal control over the budget derives from State statutes that prohibit the City from exceeding its adopted
budget in total. Transfers between funds or departmental groups may be made upon City Manager
approval and do not require council action. The legally adopted budget is at a citywide level that includes
all Governmental and Enterprise Funds. A budget schedule at the citywide level is presented in the
Required Supplementary Information Section, and the other funds are located in the Supplementary
Information Section.
On June 3, 1980, the voters of Arizona approved an expenditure limitation for all local governments. This
limitation restricts the growth of expenditures to a percentage determined by population and inflation, with
certain expenditures excluded from the limitation. Through a Home Rule option, any City can adopt its
own alternative expenditure limitation if a majority of the qualified electors vote in favor of the issue at a
regular election. On November 8, 2022, the City of Mesa voters approved to continue under Home Rule
through fiscal year 2027.
Budgets for all funds are adopted in accordance with the requirements of the Arizona Constitution,
Arizona Revised Statutes and the Mesa City Charter. There are certain differences between the basis
used for budgetary purposes and that used for reporting in accordance with generally accepted
accounting principles. For additional details, see the Notes to Budgetary Comparison Schedule. Budgeted
amounts are as originally adopted by the City Council on June 3, 2024.
g. 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 a number of estimates and assumptions that
affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of
resources and net position, the disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses/expenditures during the reporting period.
Actual results could differ from those estimates.
h. Pooled Cash and Investments
The City maintains an invested pool that is available for use by all City funds. Each fund’s portion of this
pool is reported on the financial statements as “pooled cash and investments”. Assets related to long-
term investments of the invested pool are held by a single master custodian. In addition, cash deposits
are held separately in the State of Arizona Local Government Investment Pool (LGIP).
The City considers all highly liquid investments with a maturity of three months or less when purchased to
be cash equivalents.
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized as an
increase or decrease to investment assets and investment income.
Interest income from investments is recorded as revenue within the fund that made the investment.
i. Inventories and Prepaid Items
Inventories consist of expendable supplies held for consumption. The warehouse inventory is valued at
the lower of average cost or market, while fleet support services inventory is valued at cost on a first-in,
first out (FIFO) basis. The cost of inventory is reported as an expense/expenditure at the time individual
items are consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
33
j. Capital Assets
Capital assets, including infrastructure (streets, sidewalks, street lighting, storm drainage and other assets
that are immovable and of value only to the City) are defined as assets with an initial cost of $10,000 or
more and an estimated useful life of more than one year. Intangible assets for the City include goodwill,
right of way, easements and computer software. The City has elected to capitalize software with an initial
cost of $100,000 or more. All capital assets, whether owned by governmental activities or business-type
activities, are required to be recorded and depreciated in the government-wide financial statements.
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Contributions
of assets are stated at acquisition value or engineering estimates of acquisition value at the time of
receipt. When assets are retired or sold, the costs of the assets and the related accumulated depreciation
are eliminated from the accounts, and any resultant gain or loss is charged to income or expense.
Depreciation and amortization of all assets are recorded and calculated using the straight-line method
over the following estimated useful lives:
Buildings
15-50 Years
Other Improvements
5-50 Years
Machinery and Equipment
3-30 Years
Intangibles
6-15 Years
Infrastructure
5-50 Years
Lease and subscription-based information technology arrangements assets are amortized over the
shorter of the lease period or estimated useful life of the associated contract.
Capital assets transferred between funds are transferred at their net book value (cost less accumulated
depreciation) or net realizable value, if lower, as of the date of the transfer.
k. Compensated Absences
Vacation, compensatory time and sick leave benefits are accrued as liabilities as employees earn the
benefits to the extent that they meet both of the following criteria: 1) the City’s obligation is attributable to
employees’ services already rendered; and 2) it is more likely than not that the City will compensate the
employees for the benefits through paid time off or some other means, such as cash.
For Governmental Funds a liability for vacation, compensatory time and sick leave are reported only if
they have matured, for example, as a result of employee resignations and retirements. The entire amount
of accumulated unpaid vested vacation pay, compensatory time and an estimated amount for sick leave
related to the Proprietary Funds is included as a liability in the fund financial statements. The remaining
long-term balances related to Governmental Activities are included in the Government-Wide Financial
Statement.
l. Reserve for Loss and Loss Adjustment Expenses
The Property and Public Liability, Workers’ Compensation and Employee Benefits Internal Service Funds
establish claim liabilities based on actuarial estimates of the ultimate cost of claims (including future claim
adjustment expenses) that have been reported but not settled, and of claims that have been incurred but
not reported. Adjustments to claim liabilities are charged or credited to expenses in the periods in which
they are made.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
34
m. Long-Term Obligations
In the Government-Wide Financial Statements and the Proprietary Fund Financial Statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable Governmental Activities,
Business-Type Activities, or Proprietary Fund Statement of Net Position. Bond premiums and discounts
are amortized over the life of the bonds using the effective interest method. Bonds payable are reported
net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuance are
reported as other financing uses.
n. Pension and Postemployment Benefits
For purposes of measuring the net pension and other postemployment benefits (OPEB) liabilities,
deferred outflows of resources and deferred inflows of resources related to pensions and OPEB, and
pension and OPEB expense, information about the plans’ fiduciary net position and additions to/
deductions from the plans’ fiduciary net position have been determined on the same basis as they are
reported by the plans. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value.
o. Fund Balance Policies
In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy
based on the extent to which the City is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The classifications of fund balance are Nonspendable, Restricted,
Committed, Assigned, and Unassigned. Nonspendable and Restricted fund balances represent restricted
classifications and Committed, Assigned, and Unassigned represent unrestricted classifications.
Nonspendable fund balance includes amounts that cannot be spent because either 1) it is not in a
spendable form, such as inventory or prepaid items or 2) it is legally or contractually required to be
maintained intact. Restricted fund balance has externally (outside the City) enforceable limitations
imposed by creditors, grantors, contributors, laws and regulations of other governments, or laws through
constitutional provisions or enabling legislation (changes in City Charter). Committed fund balance has
self-imposed limitations imposed at the highest level of decision making authority, namely, Mayor and
Council. Mayor and Council approval is required by resolution to commit resources or to rescind the
commitment. Assigned fund balance represents limitations imposed by management. Assigned fund
balance requests are submitted to the Chief Financial Officer for approval/nonapproval. City Charter
authorizes the City Manager or Designee the authority to perform all financial transactions. The City
Manager has authorized the Chief Financial Officer this responsibility. Unassigned fund balance
represents the residual net resources in excess of the other classifications. The General Fund is the only
fund that can report a positive unassigned fund balance and any governmental fund can report a negative
unassigned fund balance.
When both restricted and unrestricted resources are available for specific expenditures, restricted
resources are considered spent before unrestricted resources. Within unrestricted resources, committed
and assigned are considered spent (if available) before unassigned amounts.
p. Statement of Cash Flows
A statement of cash flows classifies cash receipts and payments according to whether they stem from
operating, non-capital financing, capital and related financing, or investing activities.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
35
For purposes of the statements of cash flows, the City considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. This includes all monies in the
State Treasurer’s Local Government Investment Pools since the City may deposit or withdraw cash at any
time without prior notice or penalty.
q. Contingency Services
The principal purpose of a contingency is to cover any unforeseen expenditures that may arise after the
budget is adopted, and to cover expenditures resulting from prior year encumbrances. It is impossible to
estimate revenues exactly or to determine in a prior year the exact expenditure of each program or
activity for the ensuing year. Thus, a contingency is essential for budgetary purposes.
Any balance of a contingency fund not used during one fiscal year is available to help finance the
following year’s budget. The contingency applications are reflected in the budget basis financial
statements for the fiscal year ended June 30, 2025, and are made in accordance with State Statutes.
r. Property Taxes
The City’s secondary property tax is levied each year on or before the third Monday in August based on
the previous February limited property values as determined by the Maricopa County Assessor. Levies
are due and payable in two installments, on October 1 and March 1, and become delinquent after
November 1 and after May 1, respectively. A lien attaches to the property on the first day of January
preceding the assessment and levy of taxes. Delinquent amounts bear interest at the rate of 16.0%.
Maricopa County, at no charge to the taxing entities, bills and collects all property taxes. Public auctions
of tax liens on properties which have delinquent real estate taxes are held in February.
Secondary property taxes are levied to pay principal and interest on bonded indebtedness. The dollar
amount of the secondary property tax levy is “unlimited” and the limited property value is used in
determining the tax rate.
In fiscal year 2024-2025, current property tax collections were $40,911,056 or 98.79% of the tax levy and
were recognized as revenue when received. At fiscal year end, the delinquent property tax is recorded as
a receivable. Revenue is recognized for those payments expected to be collected within 60 days and the
remaining balance is reported as unavailable revenue. The receivable on June 30, 2025, was $1,145,595
of which $642,915 was recorded as revenue and $502,680 as unavailable revenue.
s. New Accounting Pronouncements
GASB Statement No. 102 Certain Risk Disclosures. This Statement establishes financial reporting
requirements for risks related to vulnerabilities due to certain concentrations or constraints. The
requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The City
implemented this Standard in fiscal year 2025 with no significant impact on these financial statements.
2.
RECONCILIATION OF GOVERNMENTAL FUND FINANCIAL STATEMENTS TO GOVERNMENT-
WIDE FINANCIAL STATEMENTS
The governmental fund financial statements are presented on a current financial resources measurement
focus and modified accrual accounting basis while the government-wide financial statements are
prepared on a long-term economic resources measurement focus and accrual accounting basis.
Reconciliations briefly explaining the adjustments necessary to transform the fund financial statements
into the governmental activities column of the government-wide financial statements immediately follow
each governmental fund financial statement.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
36
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net
position (in thousands):
Total
Governmental
Funds
Long-term
Assets/
Liabilities (1)
Internal
Service
Funds (2)
Reclassifications
and
Eliminations
Statement of
Net Position
Total
Assets
Pooled Cash and Investments
$
955,496
$
-
$ 54,586
$
-
$ 1,010,082
Accounts and Misc Receivable, Net
29,231
-
1,319
-
30,550
Lease Receivable
49,536
49,536
Accrued Interest Receivable
4,997
-
162
-
5,159
Due from Other Governments
50,798
-
-
-
50,798
Dues from Other Funds
4,947
-
-
(4,947)
-
Inventory
-
-
14,646
-
14,646
Prepaid and Deposits
5,366
468
2,184
-
8,018
Restricted Assets:
Pooled Cash and Investments
87,039
-
-
-
87,039
Cash with Fiscal Agent
55,462
-
-
-
55,462
Accounts Receivable
19,740
-
-
-
19,740
Dues from Other Governments
1,238
-
-
-
1,238
Investment in Joint Ventures
-
278,936
-
-
278,936
Capital Assets
-
1,914,481
10,039
-
1,924,520
Total Assets
1,263,850
2,193,885
82,936
(4,947)
3,535,724
Deferred Outflows of Resources
Deferred Amounts on Refunding
-
2,264
-
-
2,264
Pensions and OPEB
-
304,060
4,349
308,409
Total Deferred Outflows of Resources
-
306,324
4,349
-
310,673
Total Assets and Deferred Outflows of
Resources
$
1,263,850
$ 2,500,209
$ 87,285
$
(4,947) $ 3,846,397
Liabilities
Accounts Payable and Accrued
$
65,643
$
-
$
5,991
$
-
$
71,634
Due to Other Funds
-
-
4,947
(4,947)
-
Claims Payable
-
-
39,946
-
39,946
Customer and Defendant Deposits
10,035
-
-
-
10,035
Unearned Revenue
30,164
-
-
-
30,164
Liabilities Payable from Restricted
59,661
-
-
-
59,661
Pension and OPEB
-
1,833,432
39,893
-
1,873,325
Long-term Liabilities
-
701,243
1,385
702,628
Total Liabilities
165,503
2,534,675
92,162
(4,947)
2,787,393
Deferred Inflows of Resources
Unavailable Revenue
27,413
(27,413)
-
-
-
Pension
-
144,151
4,625
-
148,776
Deferred Inflows Related to Leases
46,088
-
-
-
46,088
Total Deferred Inflows of Resources
73,501
116,738
4,625
-
194,864
Fund Balance/Net Position
Total Fund Balance/Net Position
1,024,846
(151,204)
(9,502)
-
864,140
Total Liabilities and Fund
Balance/Net Position
$
1,263,850
$ 2,500,209
$ 87,285
$
(4,947) $ 3,846,397
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
37
(1) Investment in joint ventures that are to be used in governmental activities are also reported in the
governmental funds as expenditures as constructed. These assets are included in the statement of
net position for the City as a whole.
Investment in Joint Ventures
$
278,936
When capital assets (land, buildings, equipment, etc.) that are to be used in governmental activities
are purchased or constructed, the costs of those assets are reported as expenditures in governmental
funds, and thus a reduction in fund balance. However, the statement of net position includes those
capital assets among the assets of the City as a whole.
Cost of Capital Assets
$
3,393,533
Accumulated Depreciation
(1,506,391)
Total
$
1,887,142
Certain items that are recognized as assets on the statement of net position are expended in
governmental funds when paid such leases, and subscription-based information technology
arrangements (SBITAs). These assets are capitalized and amortized over the shorter of the lease
period or estimated useful life of the associated contract.
Lease and SBITA Assets
$
38,071
Accumulated Amortization
(10,732)
Total
$
27,339
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the
current period, and accordingly are not reported as fund liabilities in the governmental fund statement.
Bonds Payable
$
583,808
Lease & SBITA Liability
29,165
Compensated Absences
52,003
Unamortized Bond Premium
36,267
Post-employment Benefits
864,723
Pension Liability
968,709
Total
$
2,534,675
Deferred outflows represent a consumption of net assets that applies to future reporting period(s) and
do not meet the definition of an asset. Deferred amounts on refunding result from the difference
between the carrying value of refunded debt and its reacquisition price. The pension-related amounts
result from differences between expected and actual experience, changes of assumptions or other
inputs, the difference between projected and actual investment earnings, and contributions made to
the pension plan from the employer subsequent to the measurement date of the net pension liability
and before the end of the reporting period.
Deferred Amounts on Refunding
$
2,264
Deferred Pensions and OPEB
304,060
$
306,324
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
38
Deferred inflows relating to pensions represent acquisition of net assets that applies to future periods.
Deferred Inflow of Resources on Pension
$
144,151
Prepaid expense consists of items that will consume net position in a future reporting period(s):
Prepaid Cost of Issuance
$
468
Unavailable revenues shown on the governmental fund statements are not deferred on the statement
of net position.
Unavailable Property Tax Revenues
$
533
Unavailable Special Assessment Revenue
19,740
Receivables not yet Collected
7,140
$
27,413
(2) Internal service funds are used by management to charge the costs of certain activities, such as fleet
support, materials and supplies, printing and graphics, and self-insurance, to the individual funds. The
assets, liabilities, deferred inflows and deferred outflows of the internal service funds are included in
the governmental activities in the statement of net position, but are not included on the governmental
funds balance sheet.
Internal Service Funds
$
(9,502)
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
39
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to
the Government-wide Statement of Activities (in thousands):
Total
Governmental
Funds
Long-term
Revenues/
Expenses(1)
Capital -
Related
Items(2)
Internal
Service
Funds(3)
Long-term
Debt (4)
Eliminations
(5)
Statement
of
Activities
Revenues and Other
Revenues:
Sales Taxes
$
330,176 $
- $
- $
-
$
- $
- $ 330,176
Property Taxes
46,543
(235)
-
-
-
-
46,308
Occupancy Taxes
6,726
-
-
-
-
-
6,726
Special Assessments
1,737
(846)
-
-
-
-
891
Licenses and Permits
44,305
-
-
-
-
-
44,305
Intergovernmental
353,053
-
-
-
-
-
353,053
Charges for Service
91,658
-
-
-
-
-
91,658
Fines and Forfeitures
8,248
-
-
-
-
-
8,248
Investment Income
54,764
-
-
2,971
-
-
57,735
Contributions
57
-
4,056
32,690
-
-
36,803
Miscellaneous
11,995
2,326
-
-
-
-
14,321
Other Sources:
Transfers In
218,873
-
-
11,556
-
(91,683)
138,746
Sale of Capital Assets
568
-
(568)
-
-
-
-
Face Amount of Bonds
154,266
-
-
-
(154,266)
-
-
Financing of Leases
11,123
-
-
-
(11,123)
-
-
Premiums on Issuance
of Bonds
14,622
-
-
-
(14,622)
-
-
Total Revenue and
Other Sources
T
o
t
1,348,714
1,245
3,488
47,217
(180,011)
(91,683) 1,128,970
Expenditures/
Expenses and Other
x
Expenditures/Expenses:
Current:
General
160,894
17,661 33,202
18,758
-
-
230,515
Public Safety
438,559
17,960 21,682
16,078
-
-
494,279
Community
126,557
1,994 59,355
5,262
-
-
193,168
Cultural-
87,941
2,070 21,530
2,128
-
-
113,669
Debt Service:
Principal
55,420
-
-
-
(55,420)
-
-
Interest
20,114
-
-
-
(2,975)
-
17,139
Service Charge
13
-
-
-
-
-
13
Cost of Issuance
772
-
-
-
25
-
797
Capital Outlay
211,642
- (211,642)
-
-
-
-
Other Financing Uses:
Transfers Out
91,571
-
-
112
-
(91,683)
-
Total Expenditures/
T
& Other Financing
1,193,483
39,685 (75,873)
42,338
(58,370)
(91,683) 1,049,580
Net Change for the Year
$
155,231 $
(38,440) $ 79,361 $
4,879
$ (121,641) $
- $
79,390
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
40
(1) Revenues in the statement of activities that do not provide current financial resources include
unavailable revenues. Revenues that are “unavailable” and do not provide current financial resources
are not reported in the governmental funds. However, the subsequent collection of these revenues in
the governmental funds will reduce the amount reported in the statement of activities.
Property Tax Revenues
$
(235)
Special Assessment Revenue
(846)
Unavailable Revenue
2,326
$
1,245
Some 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.
Accrual of Long Term Compensated Absence $
3,289
OPEB Expense
31,303
Pension Expense
5,093
Total
$
39,685
(2) When capital assets that are to be used in the governmental activities are purchased or constructed
the resources expended for those assets are reported as expenditures in governmental funds.
However, in the statement of activities, the cost of those assets is allocated over their useful lives and
reported as depreciation/amortization expense. As a result, fund balance decreases by the amount of
the financial resources expended, whereas net position decreases by the amount of depreciation/
amortization expense charged for the year.
Capital Outlay for Capital Assets
$
163,058
Depreciation Expense
(78,738)
Total
$
84,320
When leases (in which the City is the lessee) and subscription-based information technology
arrangements (SBITAs) are to be used in governmental activities, an expenditure is recorded in the
governmental funds in the amount of the Present Value of the Future Lease Payments (PVFLP)/
Present Value of the Future Subscription Payments (PVFSP), respectively; however, in the statement
of activities, the PVFLP and PVFSP are recognized as intangible assets and amortized over the
lease term/subscription term.
Capital Outlay for Leases and SBITAs
$
11,123
Lease & SBITA Amortization
(6,900)
Total
$
4,223
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
41
The net effect of miscellaneous transactions involving capital assets (donations, transfers and
disposals) and investment in joint venture activity is to increase net position.
Change in Equity Interest for Joint Venture
$
(8,836)
Donations, transfers and Disposals
(346)
$
(9,182)
(3) Internal service funds are used by management to charge the costs of certain activities, such as fleet
support, materials and supplies, printing and graphics, and self-insurance, to the individual funds. The
adjustments for internal service funds “close” those funds by charging the additional amounts to
participating governmental activities to completely cover the internal service funds’ costs for the year.
Revenue and other Sources
$
47,217
Expenditures and other Assets
(42,338)
Change in Net Position
$
4,879
(4) Bond and note proceeds are reported as financing sources and the repayment of principal consumes
financial resources in the governmental funds. Neither transaction has any effect on the statement of
activities.
General Obligation Bonds
$
(154,266)
Principal Repayments
49,588
Total
$
(104,678)
The financing of leases and subscription-based information technology arrangements (SBITAs) are
reported as financing sources in governmental funds and thus contribute to the change in fund
balance. The repayment of principal on leases and SBITAs consumes financial resources in the
governmental funds. Neither transaction has any effect on the statement of activities
Lease Acquisition
$
(11,123)
Principal Repayment
5,832
$
(5,291)
Governmental funds report bond premium, deferred amounts and prepaids relating to refunding when
first issued. In the statement of activities these amounts are amortized.
Premiums on Bonds
$
14,622
Amortization of Bond Premiums
(3,894)
Amortization of Deferred Refunding Amounts
919
Amortization of Bond Issuance Costs
25
$
11,672
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
42
(5) Interfund transfers between governmental activities, other than Internal Service Funds, are eliminated
in the consolidation of these activities for the statement of activities. The elimination is reflected as a
reduction of transfers in and transfers out to eliminate the doubling up effect of these transactions
within the governmental activities. Elimination of transfers to/from the Internal Service Funds is netted
into the results of the Internal Service Funds in (3) above.
Transfers Out
$
(91,683)
Transfers In
91,683
$
–
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
43
3. FUND BALANCE
As of June 30, 2025, the fund balance details by classification are listed below (in thousands):
Fund Balances:
General Fund
Non-major
Governmental
Funds
Total
Governmental
Funds
Nonspendable:
Prepaid Costs
$
4,523
$
843
$
5,366
Nonspendable Sub-total
4,523
843
5,366
Restricted:
Capital Projects
-
139,584
139,584
Community Facility District
-
1,550
1,550
Coronavirus Relief
-
2,894
2,894
Court
-
2,090
2,090
Debt Service
-
28,349
28,349
Fire
-
51,624
51,624
General Government
-
10
10
Housing
-
1,972
1,972
Library
-
276
276
Parks & Recreation
-
709
709
Police
-
67,098
67,098
Public Health
-
4,946
4,946
Spring Training and Tourism
-
3,716
3,716
Transportation Programs
-
160,630
160,630
Restricted Sub-total
-
465,448
465,448
Committed To:
Arts & Culture
-
1,121
1,121
Cemetery
3,553
3,343
6,896
Environmental Compliance
-
19,314
19,314
Fire
3,188
-
3,188
Technology
-
2,548
2,548
Committed To Sub-total
6,741
26,326
33,067
Assigned To:
Capital Projects
-
91,283
91,283
Development Services
608
-
608
Economic Development
6,125
-
6,125
Fire
10,698
-
10,698
General Government
143,084
219
143,303
Housing
5,600
-
5,600
Parks & Recreation
1,831
-
1,831
Police
18,413
-
18,413
Spring Training and Tourism
30,531
-
30,531
Sustainability
397
-
397
Transit
351
-
351
Vehicle Replacement
-
1,734
1,734
Assigned To Sub-total
217,638
93,236
310,874
Unassigned
210,091
-
210,091
Total Fund Balances
$
438,993
$
585,853
$
1,024,846
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
44
4. POOLED CASH AND INVESTMENTS
Total Pooled City Cash and Investments at fair value are as follows (in thousands):
Cash on Hand
$
18,670
Investments in Local Govt Invest Pools
11,087
Cash with Custodian (1)
11,300
Money Market
30,000
Cash with Fiscal Agent (2)
144,419
Cash with Trustee
7
Long-Term Investments
1,336,110
Total City Pooled Cash and Investments
$
1,551,593
(1) Represents cash sent by the City to Custodian on June 30, 2025 for investing purposes.
(2) Represents cash sent by the City to fiscal agents on June 30, 2025 for debt service payments
due to bondholders on July 1, 2025
Deposits
At year end, the City’s cash totaled $18,670,416 which included $137,030 in petty cash. The City’s
adjusted book balance was $18,533,386 and the bank balance was $29,624,660. The difference of
$11,091,274 represents outstanding deposits and withdrawals in transit.
Custodial Risk
Cash deposits are subject to custodial risk. Custodial risk is the risk that in the event of bank failure, the
City’s deposits may not be returned. To mitigate this risk, on July 1, 2014 Arizona House Bill 2619 Arizona
Revised Statute (§35-1201 et. seq.) went into effect establishing a pooled collateral program for public
deposits and creating a Statewide Collateral Pool Administrator (the “Administrator”) in the State
Treasurer’s Office. The purpose of this Bill is to ensure that public deposits of governmental entities
placed with participating banks are backed with collateral of 102% of the amount on deposit less
applicable FDIC Deposit Insurance. The Administrator will monitor, audit and report on each bank’s
compliance. Collateral under this program is pledged in the name of the Administrator and the City’s
current bank is a participant in this program. The City’s cash balances on deposit as of June 30, 2025 are
covered under House Bill 2619.
Investments
The City’s Investment Policy is consistent with the City Charter. The investment policy authorizes the
investment of City funds in accordance with Arizona Revised Statute §35-323. These investments include
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, State Treasurer Investment
Pool, and investment grade corporate bonds, debentures, notes and other evidence of indebtedness
issued or guaranteed by solvent U.S. corporations which are not in default as to principal or interest.
Interest Rate Risk
The City’s investment policy for limiting its exposure from rising interest rates complies with Arizona
Revised Statute §35-323, which limits investments of public monies to maturities of five years or less.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The
City’s investment policy for credit risk complies with Arizona Revised Statute §35-323. The City’s portfolio
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
45
is primarily invested in securities issued by the U.S. Treasury and by U.S. Government agencies that
carry a minimum “A” or better rating, at the time of purchase, from two nationally recognized rating
agencies.
The City’s portfolio also invests in Corporate Notes rated “A” or better by two nationally recognized rating
agencies and participates in the State Treasurer’s Investment Pool (LGIP), which is overseen according
to Arizona State Statute by the State Board of Investment. Within the State Treasurer’s Investment Pools,
the City participates in Investment Pool 7. Pool 7 is a short-term fund which invests only in products
backed by the full faith and credit of the United States Government. Pool 7 carries a weighted average
credit rating of AAA.
Associated with credit risk is concentration of credit risk and custodial credit risk. Concentration of credit
risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer.
Custodial credit risk is the risk that in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of investment or collateral securities that are in the
possession of an outside party.
The City's investments had the following credit risk structure as of June 30, 2025 (in thousands):
Investment Type
S & P Rating
Fair value
Corporate Notes
AAA
$
3,076
Corporate Notes
AA+
9,418
Corporate Notes
AA
1,502
Corporate Notes
AA-
29,858
Corporate Notes
A+
33,422
Corporate Notes
A
29,682
Corporate Notes
A-
27,524
Corporate Notes
BBB+
4,063
Corporate Notes
NR / NR**
5,067
First American Gov't Obligation MM Fund
AAAm
11,300
Goldman Sachs Money Market
AAAm
30,000
Foreign Issues
AAA
13,065
Foreign Issues
AA-
13,811
Foreign Issues
A+
13,807
Foreign Issues
A
10,991
Foreign Issues
A-
19,500
Foreign Issues
BBB+
3,023
Municipal Bonds
AAA
15,499
Municipal Bonds
AA+
8,974
Municipal Bonds
AA
15,388
Municipal Bonds
AA-
20,108
Municipal Bonds
A+
3,028
Municipal Bonds
A
984
Municipal Bonds
N/A
7,374
Municipal Bonds
N/R
6,973
US Agencies
AA+
377,152
US Agencies
N/A
328,378
US Agencies and Treasuries Short Term
N/R**
334,443
Total
$
1,377,410
*Rating by Moodys **No Rating
Fair Value of Investments
The City measures and records its investments using fair value measurement guidelines established by
generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy,
as follows:
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
46
•
Level 1: Quoted prices for identical investments in active markets;
•
Level 2: Observable inputs other than quoted market prices; and,
•
Level 3: Unobservable inputs.
On June 30, 2025, the City had the following recurring fair value measurements (in thousands):
Fair Value Measurements Using:
Fair Value
Investment by Fair Value Level
6/30/2025
Level 1
Level 2
Level 3
Debt Securities
Corporate Notes
$
143,612
$
-
$ 143,612
$
-
Foreign Issues
74,197
-
74,197
-
Municipal Bonds
78,328
-
78,328
-
US Treasuries and Agencies
1,039,973
-
1,039,973
-
Total Debt Securities at Fair Value
1,336,110
$
-
$ 1,336,110 $
-
Investments Measured at Net Asset Value
Arizona State Treasurers Investment Pools
11,087
First American Gov’t Obligation MM Fund
11,300
Goldman Sachs Money Market
30,000
Total Investments Measured At Fair Value
$ 1,388,497
Debt securities classified in Level 2 are valued using quoted prices for similar securities in active markets.
Investments valued using the net asset value (NAV) per share (or its equivalent) are City investments in
Arizona State Treasurers Investment Pool (LGIP) and unlike more traditional investments, generally do
not have readily obtainable fair values. Investments valued at NAV utilized Net Asset Values as provided
by State of Arizona Treasurer’s Office on June 30, 2025.
The City’s investment maturities on June 30, 2025 are as follows (in thousands):
Investment Maturities (in Years)
Investment Type
Fair Value
Less
Than 1
1-3
3-5
Concentration
of Credit Risk
%
Corporate Notes
$ 143,613 $
4,277
$ 75,705
$ 63,631
10.43 %
First American Gov’t Obligation MM
11,300
11,300
-
-
0.82 %
Goldman Sachs Money Market
30,000
30,000
-
-
2.18 %
Foreign Issues
74,197
12,697
39,001
22,499
5.39 %
Municipal Bonds
78,327
26,887
31,215
20,225
5.69 %
US Treasuries and Agencies
1,039,973 613,833
270,223
155,917
75.50 %
Totals
$ 1,377,410 $ 698,994
$ 416,144
$ 262,272
100.00 %
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
47
5. ACCOUNTS RECEIVABLE AND DUE FROM OTHER GOVERNMENTS
Accounts receivable are recorded in the various funds and displayed in the financial statements net of an
allowance for uncollectible accounts as follows (in thousands):
Fund
Receivables
Allowance
Net
Governmental Activities:
General Fund:
Other Customers
$
33,993
$
(9,518) $
24,475
Leases
49,536
-
49,536
Due from Other Governments:
17,562
-
17,562
Non-Major Governmental Funds:
Other Customers
6,002
(1,246)
4,756
Restricted-Spec. Assessments
19,740
-
19,740
Restricted-Due from Other Governments
1,238
-
1,238
Due from Other Governments
Sales Tax Revenues
26,403
-
26,403
Other
6,833
-
6,833
Internal Service Funds:
Premiums
11
-
11
Other Customers
1,952
(644)
1,308
Total Governmental Activities
$
163,270
$
(11,408) $
151,862
Business-Type Activities:
Utility Customers
$
52,985
$
(2,172) $
50,813
Other Customers
1,537
(190)
1,347
Leases
59,967
-
59,967
Due from Other Governments
5,867
-
5,867
Total Business-type Activities
$
120,356
$
(2,362) $
117,994
Unbilled Accounts Receivable
Unbilled utility service receivables are recorded in the year in which the services are provided. At June 30,
2025, unbilled utility service receivables are recorded in the Enterprise Fund as follows (in thousands):
Electric $
3,669
Gas
1,869
Water
12,874
Wastewater
6,212
Solid Waste
3,818
$
28,442
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
48
Governmental funds report unavailable revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Additionally, governmental funds
record unearned revenue when resources have been received, but not yet earned. At the end of the
current fiscal year, the various components of unavailable and unearned revenue reported were as
follows (in thousands):
Governmental Activities
Unearned Revenue
General
Fund
Non-Major
Funds
Total
Advance ticket sales
$
3,762
$
276
$ 4,038
Grants received prior to meeting
all eligibility requirements
-
18,496
18,496
Unspent ABC Donations
-
110
110
Amounts paid in advance
1,475
6,045
7,520
$
5,237
$
24,927
$ 30,164
Unavailable Revenue
General
Fund
Non-Major
Funds
Total
Receivables not yet collected
$
4,379
$
2,761
$ 7,140
Delinquent Property Taxes
-
533
533
Special Assessments not yet due
-
19,740
19,740
$
4,379
$
23,034
$ 27,413
6. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The following interfund activities are included in the fund financial statements on June 30, 2025 (in
thousands):
Fund
Due from
Other
Funds
Due to Other
Funds
General Fund
$
4,947
$
-
Proprietary Funds
-
4,947
Total
$
4,947
$
4,947
Interfund balances on June 30, 2025, are short-term loans used to cover temporary cash deficits in
various funds and are expected to be repaid within one year.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
49
The following interfund transfers are reflected in the fund financial statements for the year ended June 30,
2025 (in thousands):
Transfers Out
Funds
General
Non-Major
Governmental
Utility
Airport
Internal
Service
Total
General
$
- $
5,739 $ 138,566 $
11 $
112 $ 144,428
Non-Major Governmental
74,445
-
-
-
-
74,445
Internal Service
11,387
-
167
2
-
11,556
Total $
85,832 $
5,739 $ 138,733 $
13 $
112 $ 230,429
The transfer from business-type activities to governmental activities on the government-wide statement of
activities is a $138,143,000 operational subsidy from the Utility Fund to the General Fund. The remaining
interfund transfers generally fall within one of the two following categories: 1) debt service payments
made from a debt service fund but funded from an operating fund; and 2) subsidy/reserve transfers.
7. LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS
City as Lessee
The City, as a lessee, has entered into lease agreements for three buildings, including one located at a
local commercial airport, under long-term, non-cancelable lease agreements. The City sub-leases the
airport building to an aircraft parts engineering and maintenance company. The airport lease agreement
provides for increases in future minimum annual rental payments based on defined increases in the
consumer price index, subject to certain minimum increases. The total of the City’s lease assets is
recorded at a cost of $27,809,868, less accumulated amortization of $6,040,833.
Total future minimum lease payments under this lease agreement are as follows (in thousands):
Governmental Activities
Principal
Interest
Total
2026
$
2,795
$
446
$ 3,241
2027
2,140
360
2,500
2028
1,327
326
1,653
2029
1,231
301
1,532
2030
1,253
276
1,529
2031-2035
6,645
982
7,627
Thereafter
6,999
254
7,253
Totals
$
22,391
$
2,945
$ 25,335
City as Lessor
The City, as a lessor, has entered into lease agreements for land, air, buildings, and equipment under
long-term, non-cancelable lease agreements. The building that is leased from a local commercial airport
is sub-leased to an aircraft parts engineering and maintenance company. These leases expire at various
dates through 2079 and provide for renewal options ranging from 1 to 50 years. During the year ended
June 30, 2025, the City recognized $5,625,422 and $2,422,956 in lease revenue and interest revenue,
respectively, pursuant to these contracts.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
50
Transfers In
Subscription-Based Information Technology Arrangements
The City has obtained the right to use various desktop and server software, cloud backup services,
payroll and human resources software, and other intangible right-to-use software under the provisions of
various subscription-based information technology arrangements (SBITA’s).
The total of the City’s subscription assets is recorded at a cost of $10,262,000, less accumulated
amortization of $4,690,000.
The future subscription payments under SBITA agreements are as follows (in thousands):
Governmental Activities
Principal
Interest
Total
2026
$
1,420
$
247
$ 1,667
2027
1,268
198
1,466
2028
662
160
822
2029
384
144
528
2030
416
127
543
2031-2035
2,625
282
2,907
Totals
$
6,775
$
1,158
$ 7,933
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
51
8.
CAPITAL ASSETS
A summary of capital asset activity, for the government-wide financial statements, for the year ended
June 30, 2025, follows (in thousands):
Government Activities
Beginning
Balance
Additions
Retirements
Ending
Balance
Non-depreciable Assets:
Land
$ 419,761
$
-
$
-
$ 419,761
Infrastructure
3,597
-
-
3,597
Construction-in-Progress
186,489
202,455
(217,518)
171,426
Total Non-depreciable Assets
609,847
202,455
(217,518)
594,784
Depreciable Assets:
Buildings
542,027
58,764
-
600,791
Other Improvements
327,457
47,530
(1,673)
373,314
Machinery & Equipment
335,730
48,029
(5,481)
378,278
Infrastructure
1,412,491
30,099
(70)
1,442,520
Intangible:
Subscription Assets
3,926
8,000
(1,664)
10,262
Lease - Buildings
28,316
2,832
(3,629)
27,519
Lease - Machinery & Equipment
-
264
-
264
Lease - Land
-
26
-
26
Software
24,312
-
-
24,312
Total Depreciable Assets
2,674,259
195,544
(12,517)
2,857,286
Less Accumulated Depreciation for:
Buildings
(182,276)
(10,453)
-
(192,729)
Other Improvements
(184,340)
(11,943)
1,464
(194,819)
Machinery & Equipment
(218,458)
(17,105)
5,322
(230,241)
Infrastructure
(835,222)
(39,565)
70
(874,717)
Intangible:
Subscription Assets
(2,455)
(3,899)
1,664
(4,690)
Lease - Buildings
(6,577)
(2,967)
3,604
(5,940)
Lease - Machinery & Equipment
-
(84)
(84)
Lease - Land
-
(18)
-
(18)
Software
(24,312)
-
-
(24,312)
Total Accum. Depreciation
(1,453,640)
(86,034)
12,124
(1,527,550)
Total Depreciated Capital Assets net
1,220,619
109,510
(393)
1,329,736
Governmental Activities Capital, net
$ 1,830,466
$ 311,965
$ (217,911)
$ 1,924,520
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
52
Depreciation and Amortization expense was charged to functions in the government-wide financial
statements as follows (in thousands):
General Government
$
11,628
Public Safety
14,685
Community Environment
42,590
Cultural-Recreational
16,715
Capital assets held by the City's Internal Service funds are charged
to the various functions based on their usage of assets
416
$
86,034
Business-Type Activities:
Beginning
Additions
Retirements
g
Balance
Non-depreciable Assets:
Land
$ 31,786
$
-
$
-
$
31,786
Water Rights
17,560
-
-
17,560
Collections of Art
106
-
-
106
Construction-in-Progress
191,396
327,488
(105,931)
412,953
Total Non-depreciable Assets
240,848
327,488
(105,931)
462,405
Depreciable Assets:
Buildings
46,701
-
-
46,701
Other Improvements
87,533
314
-
87,847
Machinery & Equipment
93,555
15,334
(4,032)
104,857
Intangibles
26,801
-
-
26,801
Infrastructure
2,372,334
82,707
(100)
2,454,941
Total Depreciable Assets
2,626,924
98,355
(4,132)
2,721,147
Less Accumulated Depreciation for:
Buildings
(19,273)
(857)
-
(20,130)
Other Improvements
(52,328)
(2,342)
-
(54,670)
Machinery & Equipment
(67,377)
(4,876)
4,032
(68,221)
Intangibles
(23,222)
(112)
-
(23,334)
Infrastructure
(1,157,587)
(57,408)
59
(1,214,936)
Total Accum. Depreciation
(1,319,787)
(65,595)
4,091
(1,381,291)
Total Depreciable Assets, net
1,307,137
32,760
(41)
1,339,856
Business-Type Activities Assets, net
$ 1,547,985
$
360,248
$ (105,972)
$ 1,802,261
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
53
Depreciation and Amortization expense was charged to enterprise functions in the government-wide
financial statements as follows (in thousands):
Electric
$
3,826
Gas
6,780
Water
32,806
Wastewater
17,363
Solid Waste
2,706
Airport
1,795
District Cooling
319
$
65,595
Construction in progress and related construction commitments are composed of the following (in
thousands):
Governmental Activities
Construction
in Progress
Commitments
General Governments
$
150,717
$
169,937
Public Safety
3,206
1,360
Community Environment
5,864
129
Cultural-Recreational
11,639
204
Total
$
171,426
$
171,630
Business-Type Activities
Construction
In Progress
Commitments
Electric
$
10,422
$
1,965
Gas
54,044
11,253
Water
263,537
227,756
Wastewater
69,318
30,512
Solid Waste
7,319
4,226
Airport
8,142
1,472
District Cooling
171
19
Total
$
412,953
$
277,203
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
54
9. LONG-TERM OBLIGATIONS
a. Changes in Long-Term Obligations
The following is a summary of changes in long-term obligations (in thousands).
Beginning
Balances
Additions
Reductions
Ending
Balances
Amounts
Due Within
One Year
Governmental Activities:
Bonds Payable:
General Obligation Bonds
$ 335,990
$ 154,265
$ (33,745)
$
456,510
$
28,775
Highway User Revenue Bonds
18,540
-
(10,880)
7,660
3,755
Excise Tax Revenue Obligations
31,630
-
(1,375)
30,255
1,440
Community Facility District
92,971
-
(3,588)
89,383
3,678
Total Bonds Payable
479,131
154,265
(49,588)
583,808
37,648
Leases
22,077
3,122
(2,808)
22,391
2,795
Subscription-Based Information
Technology Arrangements
1,900
8,000
(3,126)
6,774
1,420
Unamortized Premiums
25,539
14,622
(3,894)
36,267
-
Compensated Absences
50,001
40,064
(36,677)
53,388
5,725
Pension and OPEB Liability
1,808,878
64,447
-
1,873,325
24,751
Governmental Activities Total
$ 2,387,526
$ 284,519
$ (96,093)
$
2,575,953
$
72,339
Business-Type Activities:
Bonds Payable:
Utility Revenue Bonds
$ 1,063,125
$
-
$ (65,335)
$
997,790
$
52,185
Utility Revenue Obligations
323,975
295,465
(8,790)
610,650
12,570
Total Bonds Payable
1,387,100
295,465
(74,125)
1,608,440
64,755
Notes Payable
827
-
(160)
667
163
Unamortized Bond Premiums
76,961
-
(8,453)
68,508
-
Unamortized Obligation Premiums
24,110
12,823
(1,755)
35,178
-
Compensated Absences
6,259
5,251
(5,044)
6,466
816
Pension and OPEB Liability
138,622
-
(263)
138,359
2,314
Business-Type Activities Total
$ 1,633,879
$ 313,539
$ (89,799)
$
1,857,619
$
68,048
Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for
internal service funds are included as part of the above totals for governmental activities. At year-end,
$1,384,705 of internal service funds compensated absences are included in the above amounts.
For governmental activities, compensated absences are generally liquidated by the general fund.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
55
b. Bonds Payable
On June 30, 2025, long-term bonds payable consisted of:
Classified in Governmental Activities on the government-wide financial statements:
General Obligation Bonds
Bonds Outstanding
(In Thousands)
$27,290,000 2012 general obligation serial bonds due in annual
installments ranging from $840,000 to $8,550,000, plus semi-annual
interest ranging from 2 percent to 4 percent through July 1, 2032.
$
14,875
$59,960,000 2013 general obligation serial bonds due in annual
installments ranging from $1,635,000 to $12,675,000, plus semi-annual
interest ranging from 1.5 percent to 4 percent through July 1, 2033.
32,525
$37,550,000 2014 general obligation serial bonds due in annual
installments ranging from $1,050,000 to $5,575,000, plus semi-annual
interest ranging from 2 percent to 3.6 percent through July 1, 2034.
18,800
$13,690,000 2015 general obligation serial bonds due in annual
installments ranging from $250,000 to $6,700,000, plus semi-annual
interest ranging from 2 percent to 5 percent through July 1, 2035.
4,315
$37,700,000 2016 general obligation serial bonds due in annual
installments ranging from $825,000 to $2,775,000, plus semi-annual
interest ranging from 2 percent to 4 percent through July 1, 2036.
23,100
$20,475,000 2016 general obligation refunding serial bonds due in annual
installments ranging from $60,000 to $5,300,000, plus semi-annual interest
ranging from 2 percent to 4 percent through July 1, 2027.
10,485
$22,935,000 2016 taxable general obligation refunding serial bonds due in
annual installments ranging from $1,000,000 to $3,565,000, plus semi-
annual interest ranging from 0.85 percent to 3 percent through July 1,
2029.
10,495
$47,180,000 2017 general obligation serial bonds due in annual
installments ranging from $1,500,000 to $5,725,000, plus semi-annual
interest ranging from 3 percent to 3.25 percent through July 1, 2037.
29,630
$47,450,000 2017 general obligation refunding serial bonds due in annual
installments ranging from $50,000 to $9,920,000, plus semi-annual interest
ranging from 2 percent to 4 percent through July 1, 2029.
27,025
$16,120,000 2018 general obligation serial bonds due in annual
installments ranging from $275,000 to $8,795,000, plus semi-annual
interest ranging from 3 percent to 4 percent through July 1, 2038.
5,525
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
56
$33,065,000 2019 general obligation serial bonds due in annual
installments ranging from $640,000 to $16,700,000, plus semi-annual
interest ranging from 2 percent to 4 percent through July 1, 2039.
$
12,965
$22,075,000 2020 general obligation serial and term bonds due in annual
installments ranging from $465,000 to $11,330,000 plus semi-annual
interest ranging from 1.875 percent to 3 percent through July 1, 2040.
8,825
$23,390,000 2020 general obligation refunding serial bonds due in annual
installments ranging from $730,000 to $12,480,000, plus semi-annual
interest ranging from 4 percent to 5 percent through July 1, 2030.
18,530
$19,030,000 2021 general obligation serial and term bonds due in annual
installments ranging from $80,000 to $17,080,000, plus semi-annual
interest ranging from 3 percent to 5 percent through July 1, 2041.
1,685
$14,495,000 2021 general obligation refunding serial bonds due in annual
installments ranging from $665,000 to $6,380,000, plus semi-annual
interest ranging of 5 percent through July 1, 2031.
10,260
$22,620,000 2022 general obligation serial bonds due in annual
installments ranging from $905,000 to $12,665,000, plus semi-annual
interest of 5 percent through July 1, 2032.
8,100
$83,340,000 2023 general obligation serial bonds due in annual
installments ranging from $2,440,000 to $9,235,000, plus semi-annual
interest of 5 percent through July 1, 2032.
68,665
$154,265,000 2025 general obligation serial bonds due in annual
installments ranging from $100,000 to $14,895,000, plus semi-annual
interest of 5 percent through July 1, 2045.
150,705
Total General Obligation Bonds
$
456,510
Street and Highway User Revenue Bonds
$17,555,000 2015 street and highway user revenue refunding bonds, due
in annual installments ranging from $15,000 to $9,880,000 plus semi-
annual interest of 3 to 5 percent through July 1, 2027.
$
7,660
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
57
Community Facilities District
$2,712,000 2013 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 1 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $62,000 to
$180,000, plus semi-annual interest ranging from 2 percent to 5.25 percent
through July 1, 2038.
$
1,702
$3,367,000 2014 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 2 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $85,000 to
$215,000, plus semi-annual interest ranging from 2 percent to 5.375
percent through July 1, 2039.
2,197
$1,942,000 2015 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 3 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $52,000 to
$135,000, plus semi-annual interest ranging from 2.3 percent to 5.2 percent
through July 1, 2039.
1,392
$6,800,000 2015 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $165,000 to $680,000, plus semi-annual interest
ranging from 4 percent to 5 percent through July 15, 2039.
4,845
$970,000 2015 Eastmark Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 4 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $15,000 to $65,000, plus
semi-annual interest ranging from 2 percent to 5 percent through July 1,
2040.
618
$1,060,000 2016 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 5 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $30,000 to
$70,000, plus semi-annual interest ranging from 1.85 percent to 4.75
percent through July 1, 2040.
765
$502,000 2017 Eastmark Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 6 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $7,000 to $35,000, plus
semi-annual interest ranging from 3.5 percent to 5.25 percent through July
1, 2041.
378
$8,160,000 2017 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $215,000 to $510,000, plus semi-annual interest
ranging from 2 percent to 5 percent through July 15, 2042.
6,220
$1,326,500 2017 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 7 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $36,500 to
$85,000, plus semi-annual interest ranging from 2 percent to 4.5 percent
through July 1, 2042.
1,031
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
58
$770,000 2018 Eastmark Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 8 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $21,000 to $49,000,
plus semi-annual interest ranging from 2.5 percent to 4.5 percent through
July 1, 2042.
$
597
$368,000 2018 Eastmark Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 9 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $8,000 to $24,000, plus
semi-annual interest ranging from 2.85 percent to 4.75 percent through July
1, 2042.
270
$10,830,000 2018 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $240,000 to $1,240,000, plus semi-annual
interest ranging from 3.75 percent to 5.0 percent through July 15, 2043.
7,995
$969,000 2018 Eastmark Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 11 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $24,000 to $65,000, plus
semi-annual interest ranging from 3.00 percent to 5.00 percent through July
1, 2043.
810
$287,000 2019 Cadence Community Facilities District No. 1 (City of Mesa,
Arizona) Assessment District No. 2 Special Assessment Revenue Bonds,
due in annual principal installments ranging from $7,000 to $20,000, plus
semi-annual interest ranging from 3.25 percent to 4.50 percent through July
1, 2043.
214
$1,883,000 2019 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 10 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $48,000 to
$130,000, plus semi-annual interest ranging from 2.75 percent to 5.20
percent through July 1, 2043.
1,562
$261,000 2019 Cadence Community Facilities District (City of Mesa,
Arizona) General Obligation Bonds, due in annual principal installments
ranging from $5,000 to $16,000, plus semi-annual interest ranging from
2.00 percent to 5.00 percent through July 15, 2043.
205
$2,012,000 2019 Cadence Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 1 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $55,000 to
$130,000, plus semi-annual interest ranging from 2.25 percent to 4.50
percent through July 1, 2043.
1,639
$1,235,000 2019 Second Series, Cadence Community Facilities District
(City of Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $35,000 to $350,000, plus semi-annual interest
ranging from 3.00 percent to 4.00 percent through July 15, 2044.
1,025
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
59
$14,120,000 2019 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $285,000 to $3,950,000, plus semi-annual
interest ranging from 3.00 percent to 4.00 percent through July 15, 2044.
$
11,805
$707,000 2020 Eastmark Community Facilities District No. 2 (City of Mesa,
Arizona) Assessment District "A" Special Assessment Revenue Bonds, due
in annual principal installments ranging from $20,000 to $270,000, plus
semi-annual interest ranging from 2.00 percent to 4.00 percent through July
1, 2044.
596
$2,803,000 2020 Cadence Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 3 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $78,000 to
$170,000, plus semi-annual interest ranging from 1.50 percent to 4.00
percent through July 1, 2045.
2,405
$5,935,000 2020 Cadence Community Facilities District (City of Mesa,
Arizona) General Obligation Bonds, due in annual principal installments
ranging from $180,000 to $1,410,000, plus semi-annual interest ranging
from 2.00 percent to 3.00 percent through July 15, 2044.
4,965
$14,000,000 2020 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $425,000 to $3,250,000, plus semi-annual
interest ranging from 2.00 percent to 4.00 percent through July 15, 2044.
11,550
$2,315,000 2020 Eastmark Community Facilities District No. 2 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $65,000 to $1,105,000, plus semi-annual interest
ranging from 2.00 percent to 4.00 percent through July 15, 2044.
1,975
$4,469,000 2021 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) Assessment District No. 12 Special Assessment Revenue
Bonds, due in annual principal installments ranging from $134,000 to
$2,300,000, plus semi-annual interest ranging from 1.60 percent to 3.75
percent through July 1, 2045.
3,922
$1,580,000 2021 Cadence Community Facilities District (City of Mesa,
Arizona) General Obligation Bonds, due in annual principal installments
ranging from $10,000 to $41,000, plus semi-annual interest ranging from
3.00 percent to 4.00 percent through July 15, 2045.
1,290
$9,955,000 2021 Eastmark Community Facilities District No. 1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $10,000 to $1,965,000, plus semi-annual interest
of 4.00 percent through July 15, 2045.
7,820
$3,520,000 2023 Eastmark Community Facilities District No.1 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $850,000 to $1,080,000, plus semi-annual
interest ranging from 4.125 percent to 5.00 percent through July 15, 2045.
2,470
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
60
$3,480,000 2023 Eastmark Community Facilities District No. 2 (City of
Mesa, Arizona) General Obligation Bonds, due in annual principal
installments ranging from $115,000 to $1,305,000, plus semi-annual interest
ranging from 4.25 percent to 5.00 percent through July 15, 2046.
$
2,880
$4,975,000 2023 Cadence Community Facilities District (City of Mesa,
Arizona) General Obligation Bonds, due in annual principal installments
ranging from $385,000 to $1,095,000, plus semi-annual interest ranging
from 4.00 percent to 5.00 percent through July 15, 2046.
4,240
Total Community Facilities District Bonds
$
89,383
Excise Tax Revenue Obligation
$36,010,000 2020 excise tax revenue serial obligations, due in annual
principal installments ranging from $645,000 to $2,595,000, plus semi-
annual interest ranging from 3.00 percent to 5.00 percent through July 1,
2040.
$
30,255
Total bonds payable recorded in governmental activities
$
583,808
Classified in Business-type Activities on the government-wide financial statements:
Utility Systems Revenue Bonds
$52,875,000 2008 utility systems revenue serial bonds, (partially refunded
by 2016 and 2018 utility systems revenue refunding bonds), due in annual
principal installments ranging from $700,000 to $44,675,000, plus semi-
annual interest ranging from 4.875 percent to 5.25 percent through July 1,
2029.
$
650
$47,290,000 2013 utility systems revenue bonds, due in one principal
installment plus semi-annual interest of 4.0 percent through July 1, 2037.
47,290
$36,385,000 2014 utility systems revenue bonds, due in two principal
installments of $20,000,000 and $16,385,000, plus semi-annual interest of
4.0 percent through July 1, 2038.
36,385
$102,945,000 2014 utility systems revenue refunding serial bonds, (partially
refunded by 2018 utility systems revenue refunding bonds) due in annual
principal installments ranging from $475,000 to $31,345,000, plus semi-
annual interest ranging from 2 percent to 4 percent through July 1, 2030.
77,880
$30,220,000 2015 utility systems revenue bonds, due in principal
installments ranging from $1,000,000 to $2,375,000, plus semi-annual
interest of 2 percent to 5 percent through July 1, 2039.
23,445
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
61
$90,500,000 2016 utility systems revenue serial bonds, due in annual
principal installments ranging from $1,000,000 to $22,550,000, plus semi-
annual interest ranging from 3 percent to 5 percent through July 1, 2040.
$
83,925
$138,035,000 2016 utility systems revenue refunding serial bonds, due in
annual principal installments ranging from $3,375,000 to $44,890,000, plus
semi-annual interest ranging from 4 percent to 5 percent through July 1,
2032.
134,660
$123,875,000 2017 utility systems revenue serial bonds, due in annual
principal installments ranging from $2,000,000 to $18,900,000, plus semi-
annual interest ranging from 3 percent to 5 percent through July 1, 2041.
112,050
$75,435,000 2017 utility systems revenue refunding serial bonds, due in
annual principal installments ranging from $885,000 to $26,565,000, plus
semi-annual interest of 4 percent through July 1, 2028.
43,620
$112,120,000 2018 utility systems revenue serial and term bonds, due in
annual principal installments ranging from $3,000,000 to $12,825,000, plus
semi-annual interest ranging from 3 percent to 5 percent through July 1,
2042.
91,120
$93,825,000 2019A utility systems revenue serial and term bonds, due in
annual principal installments ranging from $850,000 to $13,455,000, plus
semi-annual interest of 5 percent through July 1, 2043.
76,730
$54,225,000 2019B utility systems revenue refunding serial bonds, due in
annual principal installments ranging from $200,000 to $42,420,000, plus
semi-annual interest 3 percent to 5 percent through July 1, 2033.
41,560
$79,335,000 2019C utility systems revenue refunding serial bonds, due in
annual principal installments ranging from $2,950,000 to $7,800,000 plus
semi-annual interest of 5 percent through July 1, 2035.
58,055
$71,070,000 2020 utility systems revenue serial bonds, due in annual
principal installments ranging from $1,000,000 to $10,100,000, plus semi-
annual interest ranging from 3 percent to 5 percent through July 1, 2044.
60,480
$37,675,000 2020 utility systems revenue refunding serial bond due in a
single principal installment of $37,675,000 plus semi-annual interest of 4
percent through July 1, 2034.
37,675
$34,685,000 2021 utility systems revenue serial and term bonds, due in
annual principal installments ranging from $1,000,000 to $11,395,000 plus
semi-annual interest ranging from 3 percent to 5 percent through July 1,
2045.
27,395
$44,870,000 2021 utility systems revenue refunding serial bond due in a
single principal installment of $44,870,000 plus semi-annual interest of 4
percent through July 1, 2035.
44,870
Total Utility Systems Revenue Bonds
$
997,790
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
62
Utility System Revenue Obligations
$14,015,000 2021 utility revenue serial and term obligations, due in annual
principal installments ranging from $1,000,000 to $4,780,000, plus semi-
annual interest ranging from 4.00 percent to 5.00 percent through July 1,
2045.
$
11,015
$16,075,000 2022 utility revenue serial and term obligations, due in annual
principal installments ranging from $2,660,000 to $7,845,000, plus semi-
annual interest of 5.00 percent through July 1, 2046.
7,955
$54,705,000 2022 taxable utility revenue serial obligations, due in annual
principal installments ranging from $2,630,000 to $2,725,000, plus semi-
annual interest ranging from 2.90 percent to 3.95 percent through July 1,
2028.
54,705
$57,655,000 2022C taxable utility revenue refunding serial obligations, due
in a single principal installment of $57,655,000 plus semi-annual interest of
5 percent through July 1, 2036.
57,655
$193,710,000 2023 utility revenue serial obligations, due in annual principal
installment ranging from 2,500,000 to 21,300,000 plus semi-annual interest
of 5 percent through July 1, 2048.
183,855
$295,465,000 2025 utility revenue serial obligations, due in annual
principal installment ranging from 3,100,000 to 25,000,000 plus semi-
annual interest of 5 percent through July 1, 2049.
295,465
Total Utility Systems Revenue Obligations
$
610,650
Total bonds payable recorded in business-type activities
$ 1,608,440
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
63
The following tables summarize the City’s debt service requirements to maturity for its long-term bonds
payable on June 30, 2025 (in thousands). The deferred amounts on refundings are not included.
Governmental Activities
General Obligation Bonds
Highway User Revenue Bonds
Fiscal Year
Principal
Interest
Total
Fiscal Year
Principal
Interest
Total
2026
$
28,775 $ 19,139 $
47,914
2026
$
3,755 $
344 $
4,099
2027
29,860
18,128
47,988
2027
3,905
156
4,061
2028
31,000
17,009
48,009
2028
-
-
-
2029
32,135
15,854
47,989
2029
-
-
-
2030
33,440
14,655
48,095
2030
-
-
-
2031-2035
153,590
52,938
206,528
2031-2035
-
-
-
2036-2040
103,400
24,684
128,084
2036-2040
-
-
-
2041-2045
44,310
5,330
49,640
2041-2045
-
-
-
TOTALS
$ 456,510 $ 167,737 $ 624,247
TOTALS
$
7,660 $
500 $
8,160
Excise Tax Revenue
Obligations
Community Facilities District
Fiscal Year
Principal
Interest
Total
Fiscal Year
Principal
Interest
Total
2026
$
1,440 $
1,255 $
2,695
2026
$
3,678 $ 3,524 $
7,202
2027
1,515
1,183
2,698
2027
3,807
3,384
7,191
2028
1,590
1,107
2,697
2028
3,915
3,233
7,148
2029
1,670
1,028
2,698
2029
4,001
3,078
7,079
2030
1,750
944
2,694
2030
4,116
2,918
7,034
2031-2035
10,105
3,380
13,485
2031-2035
22,441 11,507
33,948
2036-2040
12,185
1,297
13,482
2036-2040
25,737
7,443
33,180
2041-2045
-
-
-
2041-2045
21,113
2,418
23,531
2046-2050
-
-
-
2046-2050
575
24
599
TOTALS
$
30,255 $ 10,195 $
40,450
TOTALS
$ 89,383 $ 37,529 $ 126,912
Business-type Activities
Revenue Bonds
Utility Revenue Obligations
Fiscal Year
Principal
Interest
Total
Fiscal Year
Principal
Interest
Total
2026
$
52,185 $ 40,379 $
92,564
2026
$ 12,570 $ 31,394 $
43,964
2027
54,655
38,104
92,759
2027
13,055 29,260
42,315
2028
58,055
35,811
93,866
2028
11,830 28,641
40,471
2029
56,235
33,383
89,618
2029
15,360 28,077
43,437
2030
55,770
31,043
86,813
2030
15,275 27,309
42,584
2031-2035
322,900 115,743
438,643
2031-2035
79,435 125,450
204,885
2036-2040
270,510
60,944
331,454
2036-2040
168,355 91,962
260,317
2041-2045
127,480
12,075
139,555
2041-2045
189,905 53,999
243,904
2046-2050
-
-
-
2046-2050
104,865 10,293
115,158
TOTALS
$ 997,790 $ 367,482 $ 1,365,272
TOTALS
$ 610,650 $ 426,385 $ 1,037,035
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
64
General Obligation Bonds
The Arizona Constitution provides that the general obligation bonded indebtedness of a city for general
municipal purposes may not exceed 6 percent of the secondary assessed valuation of the taxable
property in that city. In addition to the 6 percent limitation for general municipal purpose bonds, cities may
issue general obligation bonds up to an additional 20 percent of the secondary assessed valuation for
supplying such city with water, artificial light or sewers, and for the acquisition and development of land for
open space preserves, parks, playgrounds and recreation facilities, public safety, law enforcement, fire
and emergency services facilities and streets and transportation facilities. General obligation bonds of
community facilities districts are not subject to or included in this calculation.
The total debt margin available June 30, 2025, is (in thousands):
6% Bonds
$
579,729
20% Bonds
1,540,939
Total Available
$
2,120,668
Community Facilities Districts Special Assessment and General Obligation Bonds
Community Facilities District Special Assessment and General Obligation Bonds are issued by
Community Facilities Districts (CFDs), which are special purpose districts created specifically to acquire
and improve public infrastructure in specified land areas. The City has no liability for CFD bonds.
CFD general obligation bonds are repaid by ad valorem taxes levied directly by the districts and collected
by the county. Property owners in the districts are assessed for district taxes and thus for all costs
associated with the districts. As of June 30, 2025, total principal and interest outstanding for CFD general
obligation bonds was $97,790,063.
CFD special assessment bonds are collateralized by properties within established districts. In the event of
default by the property owner, the CFD may enforce an auction sale to satisfy the debt service
requirements of the assessment bonds. On June 30, 2025, the special assessments receivable for CFDs,
together with amounts paid in advance and interest to be received over the life of the assessment period,
are adequate for the scheduled maturities of the bonds payable and the related interest. The total
principal and interest remaining to be paid on the bonds is $29,122,861. Principal and interest paid for the
current year and total assessments collected were $1,669,000, and $1,737,000 respectively.
Utility System Revenue Bonds
City revenue bond indenture ordinances require that the net amount of revenues of the electric, gas,
water, wastewater and solid waste systems (total revenues less operations and maintenance expenses)
equal 120 percent of the principal and interest requirement in each fiscal year. The above covenant and
all other bond covenants have been met.
Pursuant to the provisions of the Bond Resolution of the City of Mesa Utility System Revenue and
Refunding bonds, Replacement and Reserve Funds are required to be established, into which a sum
equal to 2 percent of the gross revenues – as determined on a modified accrual basis – must be
deposited until a sum equal to 2 percent of all tangible assets of the Utility System is accumulated. For
the year ended June 30, 2025, the amount provided in the Replacement and Extension Funds equaled
$10,133,000 which is in compliance with the bond provisions. As of June 30, 2025, the amount available
is $46,850,000.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
65
c. Notes Payable
Business Type Activities
The City entered into four separate loan agreements with the Water Infrastructure Finance Authority of
Arizona. The purposes of the loans are to make improvements and upgrades to existing water and
wastewater projects. The loans utilize funds from the United States Environmental Protection Agency
pursuant to the Federal American Reinvestment and Recovery Act of 2009. Subject to the City meeting
the required specifications of the loan documents, two of the loans include a combined interest and fee
rate subsidy and the two remaining loans include a principal forgiveness portion. Total principal (without
principal forgiveness) is $3,486,902 and the loans have a 20-year repayment period. The total principal
forgiveness is $626,000. Total interest over the 20 years with principal forgiveness and the combined
interest and fee rate subsidy is $635,736.
The following table reflects the annual requirements to amortize all notes outstanding as of June 30,
2025(in thousands):
Business-type Activities
Interest
Fiscal Year
Principal
& Fees
Total
2026
$
163
$
15
$
178
2027
167
11
178
2028
170
7
177
2029
167
4
171
Totals
$
667
$
37
$
704
d. Short-term Debt
The City had no short-term debt activity for the fiscal year ended June 30, 2025.
e. Series 2012 Special Activity Revenue Bonds
PMGAA issued $19,220,000 in special facility Revenue Bonds on February 29, 2012. The City has
entered into a memorandum of understanding (MOU) with PMGAA and Able Engineering and Component
Services for the development, construction and lease of an aircraft maintenance repair and overhaul
facility at Phoenix-Mesa Gateway Airport. In general, the MOU addresses PMGAA issuing Special Facility
Revenue Bonds, constructing the facility and leasing the facility to the City. The City, in turn, will sublease
the facility to Able Engineering. The City pledged a portion of its excise taxes as security for payment of
the base rent. The pledge of such excise taxes will be a junior lien subordinate to certain outstanding
senior obligations. The bonds are payable from the future revenues from the City through 2038. During
that time frame, total principal and interest to be paid on the bonds will be $35,216,300. The bonds are
not considered the debt of the City.
f. Pledged Revenue
Utility System Revenue Bonds
The City has pledged future utility customer revenues, net of specified operating expenses, to repay
approximately $0.998 billion in utility system revenue bonds issued and outstanding since 2006. Proceeds
from the bonds provided financing for the construction of various utility related projects including new gas
pipelines and water and wastewater treatment plants. The bonds are payable solely from utility customer
net revenues and are payable through 2045. Annual principal and interest payments on the bonds were
45.1% percent of net revenues. The total principal and interest remaining to be paid on the bonds is
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
66
$1.365 billion. Principal and interest paid for the current year and total customer net revenues were
$108,264,000 and $240,231,000, respectively.
Highway User Revenue Bonds
The City has pledged future Highway User Taxes Revenue to repay $7,660,000 in highway user revenue
bonds issued and outstanding since 2006. Proceeds from the bonds provided financing for streets
projects. The bonds are payable solely from the state shared Highway User Tax revenues and are
payable through 2027. Annual principal and interest payments on the bonds were 23.2% percent of
eligible revenues. The total principal and interest remaining to be paid on the bonds is $8,160,000.
Principal and interest paid for the current year and total highway user tax revenues were $11,666,000 and
$50,373,000, respectively.
Excise Tax Revenue Obligations
The City has pledged future Excise Tax Revenues to repay $30,255,000 in excise tax revenue obligations
issued and outstanding since 2020. Proceeds from the obligations provided financing for construction
and installation of new higher education building. Annual principal and interest payments on the bonds
were 0.005% of eligible revenues. The total principle and interest remaining to be paid on the bonds is
$40,450,000. Principle and interest paid for the current year and total excise tax revenues were
$2,698,900 and $490,847,000, respectively.
10. REFUNDED, REFINANCED AND DEFEASED OBLIGATIONS
Liabilities to be Paid from Assets Held in Escrow
Liabilities to be paid from assets held in escrow include bonded debt of the City that has been provided
for through an Advanced Refunding Bond Issue or a Defeasance. Under an advanced refunding
arrangement, refunding bonds are issued and the net proceeds, plus additional resources that may be
required, are used to purchase securities issued or guaranteed by the United States Government. Under
a Defeasance City resources are used to purchase securities issued or guaranteed by the United States
Government. These securities are then deposited in an irrevocable trust under an escrow agreement
which provides that all proceeds from the trust will be used to fund the principal and interest payments of
the previously issued bonded debt being refunded. The trust deposits have been computed so that the
securities in the trust, along with future cash flow generated by the securities, will be sufficient to service
the previously issued bonds.
In accordance with GASB Statement No. 7, the refunded debt outstanding on June 30, 2025, as reflected
below is not included in the City’s financial statements (in thousands).
Utility System Revenue Bond Issue dated May 29, 2008
$
3,150
Utility System Revenue Refunding Bond Issue dated September 25, 2014
14,050
Total Refunded and Defeased Bonds Outstanding
$
17,200
11. SELF-INSURANCE INTERNAL SERVICE FUND
The Property and Public Liability, Workers’ Compensation and Employee Benefits Internal Service Funds
have been established to account for the costs of claims incurred by the City under self-insurance
programs. The City is fully self-insured for all public liability risks, up to a maximum of $3,000,000 per
occurrence, for the current policy year under the Property and Public Liability Insurance program. In
addition, the City carries full property insurance with a $50,000 per occurrence deductible. Under the
Workers’ Compensation Program, the City is subject to a maximum deductible of $1,000,000 liability per
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
67
occurrence. In the Employee Benefits Fund, the City has excess insurance coverage when an individual’s
claims exceed $225,000 per contract year. There were no changes in insurance coverage during this
fiscal year for any of the three Self-Insurance Funds.
The Property and Public Liability, Workers’ Compensation and Employee Benefits Internal Service Funds
do not have stop loss receivables on June 30, 2025, and did not received any settlements in excess of
insurance coverage over the past three fiscal years.
The various funds of the City include, as expenditures, amounts contributed to each of the self-insurance
funds during the fiscal year. The estimated liability for claims outstanding is determined by a yearly
actuarial study in the Property and Public Liability Fund and the Workers Compensation Fund. The claims
liability in the Employee Benefits Fund is generated by a third-party claims processing company.
Changes in the balances of claims liabilities during the past two fiscal years are as follows (in thousands):
Property &
Public Liability
Workers'
Compensation
Employee
Benefits
Total
Unpaid Claims, 6/30/23
$
10,469
$
28,284
$
4,465
$ 43,218
Adjustments to Reserves
2,464
(1,671)
71,828
72,621
Claim Expense
(1,021)
827
(70,522)
(70,716)
Unpaid Claims, 6/30/24
11,912
27,440
5,771
45,123
Adjustments to Reserves
(246)
(2,248)
72,687
70,193
Claims Expense
(1,032)
(2,512)
(71,828)
(75,372)
Unpaid Claims, 6/30/25
$
10,634
$
22,680
$
6,630
$ 39,944
All unpaid claims are reported as current liabilities in the Statement of Net Position as the change in these
amounts has already been expensed in the statement of activities.
12. COMMITMENTS AND CONTINGENT LIABILITIES
a. Pending Litigation
The City is subject to a number of lawsuits, investigations, and other claims (some of which involve
substantial amounts) that are incidental to the ordinary course of its operations, including those related to
wrongful death and personal injury matters. Although the City Attorney does not currently possess
sufficient information to reasonably estimate the amounts of the liabilities to be recorded upon the
settlement of such claims and lawsuits, some claims could be significant to the City’s operations. While
the ultimate resolution of such lawsuits, investigations, and claims cannot be determined at this time, in
the opinion of City management, based on the advice of the City Attorney, the resolution of these matters
will not have a material adverse effect on the City’s financial position.
b. Sick Leave Benefits
Sick leave benefits provided for ordinary sick pay are not vested with the employee. Fifty percent of
unused benefits are payable only upon retirement of an employee. In accordance with the criteria, sick
leave paid within 60 days of the year-end has been recorded as a liability in the governmental fund
financial statements. Long-term liabilities of governmental funds are not shown on the fund financial
statements. In the government-wide financial statements as well as the proprietary fund financial
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
68
statements, the amount of estimated sick leave payable to employees has been expensed and the liability
is shown in the appropriate funds. These amounts have been calculated based on the vested method.
The total sick leave balance recorded as a liability on June 30, 2025, is $25,168,730.
13. NET POSITION
a. Restricted Net Position
The government-wide statement of net position reports $512,919,000 of restricted net position, of which
$280,357,000 is restricted by enabling legislation.
b. Designated Net Position
The net position in the Employee Benefits Self Insurance Fund is designated for anticipated future losses
and is a result of excess premiums charged to increase the fund balance specifically for this purpose.
c. Deficit in Net Position and Fund Balance
The deficit in the Worker’s Compensation Self-Insurance Fund consists of the prior year’s deficit resulting
from claims expenses exceeding revenues received and from post-employment benefit charges and
pension expenses. The City’s funding plan calls for yearly contributions from various funds to equal the
year’s estimated claims and claim related expenses. Future claim liabilities, post-employment benefit
charges, and pension expenses are not considered in determining funding for each year.
The deficit in the Warehouse, Maintenance, and Services Fund consists of the prior year’s deficit resulting
from other post-employment benefit charges and pension expenses. The City’s funding plan calls for
Charges for Services to cover operational expenses. Post-employment benefit charges and pension
expenses are not considered in determining Charges for Services.
14. ENTERPRISE ACTIVITIES OPERATIONS DETAIL
The Enterprise Fund includes operations of electricity, gas, water, wastewater, solid waste, airport and
district cooling. Although the City’s Enterprise Fund does not meet the requirements for disclosing
segment information, the services provided by the City are of such significance as to warrant certain
additional disclosures. Operating revenue, expenses and operating income (loss) for the year ended
June 30, 2025, for these services are as follows (in thousands):
Operating Expenses
Functions
Operating
Revenues
Depreciation
Other
Operating
Income (Loss)
Electric
$
51,377
$
3,826
$ 37,881
$
9,670
Gas
60,901
6,780
34,310
19,811
Water
205,684
32,806
89,666
83,212
Wastewater
110,266
17,363
54,610
38,293
Solid Waste
76,885
2,706
48,415
25,764
Airport
5,086
1,795
4,896
(1,605)
District Cooling
1,501
319
1,431
(249)
Total
$
511,700
$
65,595
$ 271,209
$
174,896
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
69
15. JOINT VENTURES
The City currently participates in five joint ventures. The Greenfield Water Reclamation Plant and TOPAZ
Regional Wireless Cooperative are managed by the City of Mesa, while the Subregional Operating
Group, the Val Vista Water Treatment Plant, and Valley Metro Rail, Inc. are managed externally.
The City's investment in these Joint Ventures as of June 30, 2025, is as follows (in thousands):
Governmental
Activities
Business-Type
Activities
Total
Valley Metro Rail Inc.
$
272,615
$
-
$
272,615
TOPAZ Regional Wireless Cooperative
6,321
-
6,321
Subregional Operating Group
-
86,926
86,926
Val Vista Water Treatment Plant
-
52,535
52,535
Greenfield Water Reclamation Plant
-
136,540
136,540
Joint Ventures Construction Deposits
-
7,119
7,119
Total Investment in Joint Ventures
$
278,936
$
283,120
$
562,056
Valley Metro Rail, Inc. “VMRI”
The City currently participates in the Central Phoenix/East Valley Light Rail Transit (LRT) along with the
cities of Phoenix, Tempe and Glendale. Valley Metro Rail, Inc. (VMRI) is the management agency that
was incorporated to administer the joint agreement between the cities and has oversight responsibility for
the planning, design, construction and operation of the system. The agreement provides voting rights for
members of the representative cities, including passage of an annual budget. The City has ongoing
financial responsibility as a result of the joint agreement including participation in the cost to construct and
to operate the light rail project less any Federal reimbursements and operating fares. The City’s equity in
the joint venture is $272,615,164 and is reflected in the governmental activities.
Separate financial statements can be obtained through Valley Metro Rail Inc. at 101 North First Avenue,
Suite 1300, Phoenix, Arizona, 85003.
TOPAZ Regional Wireless Cooperative
The City of Mesa currently participates with the City of Apache Junction, Superstition Fire and Medical,
the Town of Gilbert, the Town of Queen Creek, Fort McDowell and Rio Verde Fire District (the Parties) in
an intergovernmental agreement to plan, design, construct, operate, maintain and finance the TOPAZ
Regional Wireless Cooperative Network (TOPAZ). TOPAZ is a 700/800 MHz Network procured and built
by the City of Mesa. The City acts as the lead agency and is responsible for the planning, budgeting,
construction, operation and maintenance of the network. As lead agent, the City provides all management
personnel and financing arrangements. The Parties participate in ownership of the network and are
charged for operating and capital expenses based on six month rolling average of airtime. The City’s
equity in the joint venture is $6,320,920 and is reflected in the governmental activities. Separate financial
statements are not prepared.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
70
Total investment in the joint venture as of June 30, 2025, is (in thousands):
TOPAZ Regional Wireless Cooperative
City of Mesa
$
6,321
Town of Gilbert
1,565
City of Apache Junction
635
Superstition Fire and Medical
177
Town of Queen Creek
284
Fort McDowell
71
Rio Verde Fire District
17
Fountain Hills
13
Total Joint Venture
$
9,083
Wastewater
Subregional Operating Group
The City participates with the cities of Phoenix, Glendale, Scottsdale and Tempe in the Subregional
Operating Group (SROG). SROG was formed pursuant to the Joint Exercise of Powers Agreement
(JEPA) in order to govern the construction, operation and maintenance of a multi-city sanitary sewer
system (the “System”). The System includes the 91st Avenue Wastewater Treatment Plant, the Salt River
Outfall Sewer, the Southern Avenue Interceptor and related transportation facilities.
The City of Phoenix acts as the lead agency in SROG and is responsible for the planning, budgeting,
construction, operation and maintenance of the plant in addition to providing all management personnel
and financing arrangements. The various cities participate in ownership of the plant and are charged for
operating expenses based on gallons of flow. The different agencies participate in each facility at varying
rates depending on their needs at the time each facility was constructed. The City’s equity in the joint
venture is $86,925,857 and is reflected in the proprietary funds financial statements.
SROG has no bonded debt outstanding. Separate financial statements for the activity under the joint
venture agreement can be obtained through the AMWUA office at 3003 N. Central Avenue, Suite 1550,
Phoenix, Arizona, 85012.
Greenfield Water Reclamation Project
The City of Mesa acts as the lead agency in a joint water reclamation plant with the Towns of Gilbert and
Queen Creek and is responsible for the planning, budgeting, construction, operation, and maintenance of
the plant. As lead agent, the city provides all management personnel and financing arrangements. Mesa,
Gilbert, and Queen Creek participate in ownership of the plant and are charged for operating expenses
based on gallons of flow. The City’s equity in the joint venture is $136,540,254 and is reflected in the
proprietary funds financial statements. Separate financial statements are not prepared.
Total investment in the joint venture as of June 30, 2025, is (in thousands):
Greenfield Water Reclamation Project
Mesa's Share
$
136,540
Gilbert's Share
89,334
Queen Creek's Share
27,045
Total Joint Venture
$
252,919
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
71
Water
Val Vista Water Treatment Plant
The City also participates with the City of Phoenix in the Val Vista Water Treatment Plant and
Transmission Line. The City of Phoenix is responsible for the planning, budgeting, construction, operation
and maintenance of the plant. As the lead agency, Phoenix provides all management personnel and
financing arrangements. Phoenix and Mesa participate in ownership of the plant and are charged for
operating expenses based on gallons of water treated. The City’s investment in the joint venture is
$52,535,155 and is reflected in the proprietary funds financial statements.
The water treatment plant has no bonded debt outstanding. Separate financial statements for the activity
can be obtained through the City of Phoenix, Finance Department, Financial Accounting and Reporting
Division at 251 W. Washington Street, 9th Floor, Phoenix, Arizona, 85003.
16. PENSIONS AND OTHER POST EMPLOYMENT BENEFITS
All benefited employees of the City are covered by one of three pension systems. The Arizona State
Retirement System (ASRS) is for the benefit of the employees of the state and certain other governmental
jurisdictions. All benefited City employees, except sworn fire and police personnel and the Mayor and City
Council Members, are included in the plan that is a multiple-employer cost-sharing defined benefit
pension plan. All sworn fire and police personnel participate in the Public Safety Personnel Retirement
System that is an agent plan. The Mayor and City Council Members contribute to the State’s Elected
Officials Retirement Plan that is also a multiple-employer cost-sharing pension plan. The Elected Officials
Retirement Plan is not described below because of its relative insignificance to the financial statements.
In addition, eligible employees are covered by other postemployment benefit plans. All sworn fire and
police personnel participate in the Public Safety Personnel Retirement System (PSPRS) that is an agent
multiple-employer defined benefit health insurance premium benefit (OPEB) plan. Eligible City
employees also participate in the City’s OPEB plan. Eligible City employees covered by Arizona State
Retirement System also participate in the ASRS OPEB plan. The ASRS OPEB plan is not described
below because of its relative insignificance to the financial statements.
On June 30, 2025, the City reported the following aggregate amounts related to pensions for all plans to
which it contributes (in thousands):
Statement of Net Position and Statement of
Activities
Governmental
Activities
Business-
Type
Activities
Total
Net Pension Liabilities
$
980,645
$
55,934
$
1,036,579
Deferred Outflows of Resources - Pension
246,892
11,495
258,387
Deferred Inflows of Resources - Pension
26,909
3,579
30,488
Pension Expense
123,331
6,480
129,811
Net OPEB Liabilities
892,680
82,425
975,105
Deferred Outflows of Resources - OPEB
61,517
5,591
67,108
Deferred Inflows of Resources - OPEB
121,868
11,386
133,254
OPEB Expense
52,358
4,775
57,133
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
72
Arizona State Retirement System Defined Benefit Plan:
a. Plan Description
All of the City’s eligible benefited general employees participate in the Arizona State Retirement System
(“ASRS”), a multiple-employer, cost-sharing defined benefit pension plan. ASRS was established by the
State of Arizona to provide pension benefits for employees of the state and employees of participating
political subdivisions and school districts. ASRS is administered by the ASRS Governing Board in
accordance with Title 38, Chapter 5 Articles 2 and 2.1 of the Arizona Revised Statutes (“A.R.S.”). ASRS
provides for retirement, disability, and death and survivor benefits. ASRS issues a publicly available
financial report that includes financial statements and required supplementary information. The report
may be obtained by writing to the Arizona State Retirement System, P.O. Box 33910, Phoenix, Arizona,
85067-3910 or by calling 1-800-621-3778.
b. Benefits Provided
The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor
benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age,
average monthly compensation, and service credit as follows:
Retirement Initial Membership Date:
Before
July 1, 2011
On or After
July 1, 2011
Years of service and age
Sum of years and age
equals 80
30 years, age 55
required to receive benefit
10 years, age 62
25 years, age 60
5 years, age 50*
10 years, age 62
any years, age 65
5 years, age 50*
any years, age 65
Final average salary is based on
Highest 36 consecutive
Highest 60 consecutive
months of last 120 months
months of last 120
months
Benefit percentage per
year of service
2.1% to 2.3 %
2.1% to 2.3 %
* With actuarially reduced benefits.
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to
automatic cost-of-living adjustments based on excess investment earnings. Members with a membership
date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are
payable upon a member’s death. For retired members, the survivor benefit is determined by the
retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s
account balance that includes the member’s contributions and employer’s contributions, plus interest
earned.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
73
Contributions
The A.R.S. provides statutory authority for determining the employees’ and employers’ contribution
amounts as a percentage of covered payroll. Employers are required to contribute at the same rate as
employees. The combined active member and employer contribution rates are expected to finance the
costs of benefits employees earn during the year, with an additional amount to finance any unfunded
accrued liability. For the year ended June 30, 2025, the city and covered employees were required by
state statute to contribute at the actuarially determined rate of 12.27% (12.12% pension plus 0.15% long-
term disability) of the active members’ annual covered payroll. The City’s contributions to the System for
the year ending June 30, 2025, was $29,632,022, 75.35% paid from governmental funds, 4.33% paid
from internal service funds, and 20.31% paid from enterprise funds.
Additionally, the City is required by Statute to pay an ASRS Alternate Contribution Rate (ACR) for retired
members who return to work on or after July 1, 2012, in any capacity and in a position ordinarily filled by
an employee of the City to mitigate the potential impact that retired members who return to work may
have on the ASRS Trust Fund. The contribution rate for the year ended June 30, 2025, was 10.19 %
(10.14% pension plus, 0.05% long-term disability). The City’s ACR contributions to the System for the
year ending June 30, 2025, were $221,336.
c. Pension Liability
On June 30, 2025, the City reported a liability of $275,385,905 for its proportionate share of the ASRS’ net
pension liability. The net pension liability was measured as of June 30, 2024. The total pension liability
used to calculate the net pension liability was determined using update procedures to roll forward the total
pension liability from an actuarial valuation as of June 30, 2023, to the measurement date of June 30,
2024.
The City’s proportion of the net 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, 2024. The
City’s proportion measured as of June 30, 2024, was 1.72100%, which was a increase of 0.10612% from
its proportion measured as of June 30, 2023.
d. Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2025, the City recognized pension expense for ASRS of $31,903,303. On
June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resourced related
to pensions from the following sources (in thousands):
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
15,372
$
-
Changes of assumptions
-
-
Net difference between projected and actual earnings
on pension plan investments
-
17,586
Changes in proportion and differences between City contributions
11,367
34
City contributions subsequent to the measurement date
29,853
-
Total
$
56,592
$
17,620
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
74
The $29,853,358 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 ending June 30, 2026. 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
(in thousands):
Year Ended June 30,
2026
$
(2,058)
2027
18,855
2028
(4,452)
2029
(3,226)
$
9,119
e. Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
Actuarial Valuation Date
June 30, 2023
Actuarial Roll Forward Date
June 30, 2024
Actuarial Cost Method
Entry Age Normal
Investment Rate of Return
7.0%
Projected Salary Increases
2.9 - 8.4%
Inflation
2.3%
Permanent Benefit Increase
Included
Mortality Rates
2017 SRA Scale U-MP
Actuarial assumptions used in the June 30, 2024, valuation were based on the results of an actuarial
study for the 5-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 pension 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:
Asset Class
Target
Allocation
Long-Term
Expected
Geometric Real
Rate of Return
Public Equity
44 %
4.48 %
Credit
23 %
4.40 %
Real Estate
17 %
6.05 %
Private Equity
10 %
6.11 %
Interest Rate Sensitive
6 %
(0.45) %
Total
100 %
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
75
f. Discount Rate
At June 30, 2024, the discount rate used to measure the ASRS total pension liability was 7.0%. 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 statutes. 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
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
g. Sensitivity of the 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 7.0 %, as well as what the City’s proportionate share of the net pension liability would be
if it were calculated using a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point
higher (8.0 %) than the current rate (in thousands):
1% Decrease
Current
Discount Rate
1% Increase
6.0%
7.0%
8.0%
City's proportionate share of the net pension liability
$
421,672
$
275,386
$
153,469
h. Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
ASRS financial report.
Public Safety Personnel Retirement System:
a. Plan Description
All sworn fire and police personnel regularly assigned hazardous duty are eligible to participate in the
Public Safety Personnel Retirement System (“PSPRS”). The PSPRS administers 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. The PSPRS is jointly administered by a nine-
member board known as the Board of Trustees, and the participating local boards according to the
provisions of A.R.S. Title 38, Chapter 5, Article 4. Employees who were PSPRS members before July 1,
2017, participate in the agent plans, and those who became PSPRS members on or after July 1, 2017,
participate in the cost-sharing plans (PSPRS Tier 3 Risk Pool).
The PSPRS issues a publicly available financial report that includes financial statements and required
supplementary information. This report is available on the PSPRS website at www.psprs.com.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
76
b. Benefits Provided
The PSPRS provides 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
Before January 1, 2012
On or after January 1, 2012
and before July 1, 2017
On or After July 1, 2017
Retirement and Disability
Years of service and age
required to receive
benefit
20 years of service, any age
15 years of service, age 62
25 years of service or 15
years of credited service, age
52.5
15 years of credited service, age
52.5*; 15 or more years of
service, age 55
Final average salary is
based on
Highest 36 consecutive
months of last 20 years
Highest 60 consecutive
months of last 20 years
Highest 60 consecutive months
of last 15 years
Benefit percentage
Normal Retirement
50% less 2.0% for each year
of credited service less than
20 years OR plus 2.0% to
2.5% for each year of
credited service over 20
years, not to exceed 80%
1.5% to 2.5% for each 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 calculated with actual years of credited service or 20 years of credited service,
whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by
20
Survivor Benefit
Retired Members
80% to 100% of retired member's pension benefit
Active Members
80% to 100% of accidental disability retirement benefit or 100% of average monthly
compensation if death was the result of injuries received on the job
* With actuarially reduced benefits
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation.
PSPRS also provides temporary disability benefits of 50 percent of the member’s compensation for up to
12 months.
Health insurance premium benefits are available to retired or disabled members with 5 years of credited
service. The benefits are payable only with respect to allowable health insurance premiums for which the
member is responsible. Benefits range from $100 per month to $260 per month depending on the age of
the member and dependents.
The PSPRS-Fire OPEB plan is not presented because of its relative insignificance to the financial
statements.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
77
Employees Covered by Benefit Terms
On June 30, 2025, the following employees were covered by the agent plans’ benefit terms:
PSPRS Fire
PSPRS Police
Pension
Pension
Health
Inactive employees or beneficiaries currently receiving benefits
330
764
764
Inactive employees entitled to but not yet receiving benefits
91
292
117
Active employees
435
731
731
Total
856
1,787
1,612
c. Contributions and Annual OPEB Cost
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, 2025, are indicated below. Rates are a percentage of active members’ annual covered payroll.
Active Member
Pension
City
Pension
City
OPEB
PSPRS - Fire
7.65%
60.49%
0.58%
PSPRS - Police
7.65%
61.22%
1.50%
PSPRS Tier 3 - Fire
9.66%
9.53%
0.13%
PSPRS Tier 3 - Police
8.67%
8.58%
0.09%
Also, statute required the City to contribute a legacy cost of pension unfunded liability at the actuarially
determined rate expressed as a percent of annual covered payroll of 43.87% and 47.28% for City fire and
police employees respectively, who were PSPRS Tier 3 members.
The City’s required contributions to the plans for the year ended June 30, 2025, were:
Pension
OPEB
PSPRS - Fire
$
18,446,029
$
176,867
PSPRS - Police
29,877,822
732,060
PSPRS Tier 3 - Fire
8,613,987
59,685
PSPRS Tier 3 - Police
18,862,370
415,337
The City contributed to the unfunded liability additional amounts of $4,206,978 and $12,116,780 to
PSPRS-Fire and PSPRS-Police, respectively. The City’s contribution to the system was paid for by the
general fund.
The City is also required to pay a PSPRS Alternate Contribution Rate (ACR) for retired members who
return to work in any capacity and in a position ordinarily filled by an employee of the City, unless the
retired member is required to participate in another state retirement system and the retired member
returned to work before July 20, 2011. The ACR rate is equal to the portion of the total required
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
78
contribution that is applied to the amortization of the unfunded actuarial accrued liability for the fiscal year
beginning July 1, based on the actuarial calculation of the total required contribution for the preceding
fiscal year ended on June 30. The contribution rate for the year ended June 30, 2025, was 43.87% and
47.28% for fire and police, respectively. The City did not have any ACR contributions for the year ending
June 30, 2025.
d. Liability
On June 30, 2025, the City reported the following pension liabilities of $263,264,432 and $497,926,145
for fire and police, respectively. The City also reported an OPEB liability of $11,072,878 for police. The net
liabilities were measured as of June 30, 2024, and the total liability used to calculate the net liability was
determined by an actuarial valuation as of that date. The total liabilities as of June 30, 2024, reflect
changes of actuarial assumptions from the prior year.
e. Pension/OPEB Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2025, the City recognized pension expenses of $34,283,881 and
$63,624,098 for fire and police, respectively. The City also recognized OPEB expense of $1,288,446 for
police.
On June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions and OPEB from the following sources (in thousands):
PSPRS - Fire Pension
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
37,900
$
63
Changes in assumptions
5,044
-
Net difference between projected and actual
earnings on pension plan investments
-
4,413
City contributions subsequent to
the measurement date
31,267
-
Total
$
74,211
$
4,476
Pension
OPEB
PSPRS - Police
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
61,482
$
-
$
408
$
-
Changes in assumptions
5,244
-
156
-
Net difference between projected and
actual earnings on plan investments
-
8,391
-
84
City contributions subsequent to
the measurement date
60,857
-
1,147
-
Total
$ 127,583
$
8,391
$
1,711
$
84
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
79
The amounts reported as deferred outflows of resources related to pensions and OPEB resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions and OPEB will be recognized in pension expense as
follows (in thousands):
Year Ended
June 30,
PSPRS Fire
Pension
PSPRS
Police
Pension
PSPRS
Police
OPEB
2026
$
6,094
$
10,870
$
38
2027
11,581
22,683
350
2028
5,631
11,580
73
2029
4,826
7,370
(13)
2030
4,014
5,832
16
Thereafter
6,322
-
16
$
38,468
$
58,335
$
480
f. Actuarial Methods and Assumptions
The significant actuarial assumptions used to measure the total pension/OPEB liability are as follows:
Actuarial Assumptions:
Measurement Date
June 30, 2024
Actuarial Valuation Date
June 30, 2024
Actuarial Cost Method
Entry Age Normal
Investment Rate of Return
7.20%
Wage Inflation
3.25 - 15.0%, N/A for OPEB
Price Inflation
2.5%, N/A for OPEB
Cost-of-living adjustment
1.85%, N/A for OPEB
Mortality Rates for Pension and OPEB
PubS-2010 tables
Healthcare cost trend rate
Not applicable
Actuarial assumptions used in the June 30, 2024, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2021.
The long-term expected rate of return on PSPRS 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:
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
80
Asset Class
Target
Allocation
Long-Term
Expected
Geometric Real
Rate of Return
U.S. Public Equity
24%
3.62%
International Public Equity
16%
4.47%
Global Private Equity
27%
7.05%
Core Bonds
6%
2.44%
Private Credit
20%
6.24%
Diversifying Strategies
5%
3.15%
Cash - Mellon
2%
0.89%
Total
100%
g. Discount Rate
A discount rate of 7.20% for Tier 1 and Tier 2 members was used to measure the total pension/OPEB
liability. A discount rate of 7.00% for Tier 3 members was used to measure the total Pension/OPEB
Liability. The projection of cash flows used to determine this discount rate assumed that plan member
contributions will be made at the current contribution rate and that employer contributions will be made at
rates equal to the difference between actuarially determined contribution rates and the member rate.
Based on these assumptions, the plans’ fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on plan investments was applied to all periods of projected benefit payments to determine the total
pension/OPEB liability.
h. Sensitivity of the City’s Net Pension/OPEB Liability to Changes in the Discount Rate
The following table presents the City’s net pension/ OPEB liabilities calculated using the discount rates
noted above, as well as what the City’s net pension/OPEB 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 (in thousands):
1% Decrease
Current
Discount
Rate
1% Increase
Fire Net Pension Liability
$
339,334
$
263,264
$
200,837
Police Net Pension Liability
645,608
497,926
377,782
Police OPEB Liability
13,411
11,073
9,099
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
81
Changes in the Net Pension/OPEB Liability
The following tables present changes in the City’s net pension/OPEB liability for the PSPRS – Fire and
Police plans as follows (in thousands):
Fire
Total
Pension
Liability
Plan
Fiduciary
Net
Position
Net
Pension
Liability
Balance - Beginning of Year
$
540,182
$ 278,421
$ 261,761
Changes for the Year:
Service Cost
10,101
-
10,101
Interest on the Total Liability
38,618
-
38,618
Differences Between Expected &
Actual Experience in the
Measurement of the Liability
18,462
-
18,462
Contributions - Employer
-
32,664
(32,664)
Contributions - Employee
-
3,990
(3,990)
Net Investment Income
-
29,201
(29,201)
Benefit Payments, Including Refunds
of Employee Contributions
(27,833)
(27,833)
-
Administrative Expenses
-
(177)
177
Net Changes
39,348
37,845
1,503
Balances - End of Year
$
579,530
$ 316,266
$ 263,264
Police
Total
Pension
Liability
Plan
Fiduciary
Net
Position
Net
Pension
Liability
Total
OPEB
Liability
Plan
Fiduciary
Net
Position
Net
OPEB
Liability
Balance - Beginning of Year
$ 1,010,327
$ 511,948
$ 498,379
$ 22,671 $ 11,171
$ 11,501
Changes for the Year:
Service Cost
15,642
-
15,642
237
-
237
Interest on the Total Liability
71,984
-
71,984
1,589
-
1,589
Differences Between Expected &
Actual Experience in the
Measurement of the Liability
34,992
-
34,992
115
-
115
Contributions - Employer
-
62,164
(62,164)
-
1,311
(1,311)
Contributions - Employee
-
7,300
(7,300)
-
-
-
Net Investment Income
-
53,977
(53,977)
-
1,064
(1,064)
Benefit Payments, Including Refunds
of Employee Contributions
(52,375) (52,375)
-
(1,690)
(1,690)
-
Administrative Expenses
-
(370)
370
-
(7)
-
Net Changes
70,243
70,696
(453)
251
678
(427)
Balances - End of Year
$ 1,080,570
$ 582,644
$ 497,926
$ 22,922 $ 11,849
$ 11,074
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
82
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend rates, note that
trend rates are not applied in the valuation due to the nature of the benefits provided.
i. Plan Fiduciary Net Position
Detailed information about the pension/OPEB plan’s fiduciary net position is available in the separately
issued PSPRS financial report.
City of Mesa OPEB:
a. Plan Description
The City provides post-employment medical care benefits (OPEB) for retired employees through a single
employer defined benefit medical plan. The plan provides these benefits for eligible retirees, their spouses
and dependents through the City’s self-insurance health insurance plan which covers both active and
retired members. The benefits, benefit levels and contribution rates are determined annually by the City’s
Benefits Advisory Board and approved by the Mesa City Council. The plan is not accounted for as a trust
fund, and an irrevocable trust has not been established to account for the plan.
b. Benefits Provided
The City provides post-employment medical care benefits to its retirees. To be eligible for benefits, an
employee must qualify for retirement under one of the state retirement plans for public employees and be
covered under the City’s medical plan during their active status. Employees must enroll in a City plan
immediately after they retire or their eligibility for this benefit ceases. All medical care benefits are
provided through the City’s self-insured health plan. The benefit levels are the same as those afforded to
active employees. Upon a retiree’s death, the retiree’s dependents are no longer eligible for City
coverage.
To receive maximum benefits an employee must meet the following:
•
Ten years of service for employees hired prior to January 1, 2001
•
Fifteen years of service for employees hired on January 1, 2001 but before January 1, 2006.
•
Twenty years of service for employees hired on or after January 1, 2006.
Employees Covered by Benefit Terms
As of June 30, 2023 (date of most recent valuation), membership consisted of:
Active Employees
3,707
Retirees
2,139
Spouses
1,517
Others
414
Total
7,777
c. OPEB Liability
The plan operates on a pay-as-you-go basis and thus has no assets. The total OPEB liability measured
as of June 30, 2025, is $964,030,800.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
83
d. OPEB Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2025, the City recognized OPEB expense of $55,843,809. On June 30,
2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources (in thousands):
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
$
26,584
$
3,319
Changes of assumptions
11,748
129,851
City benefit payments subsequent to the measurement date
27,065
-
Total
$
65,397
$ 133,170
The amounts reported as deferred outflows of resources resulting from City benefit payments subsequent
to the measurement date will be recognized as a reduction of the net liability in the year ended June 30,
2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions and OPEB will be recognized in pension expense as follows (in thousands):
Year Ended June 30,
2026
$ (31,709)
2027
(33,885)
2028
(33,560)
2029
2,635
2030
1,528
2031
153
$ (94,838)
e. Actuarial Methods and Assumptions
Projections of benefits are based on the substantive plan (the plan understood by the employer and plan
members) and include the type of benefits in force at the valuation date and the pattern of sharing
benefits between the City and the plan members at that point. Actuarial calculations reflect a long-term
perspective and employ methods and assumptions that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions used
for this fiscal year valuation were as follows:
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
84
Actuarial Assumptions:
Actuarial Valuation Date
June 30, 2023
Measurement Date
June 30, 2024
Actuarial Cost Method
Entry Age Normal
Discount Rate
4.21%
Consumer Price Index
3.00%
Projected Salary Increases
2.90 - 15.0%
Mortality Rates
Based on the rates used for the June
30, 2024 valuations of the ASRS Plan
and the PSPRS Plan.
Health care cost trend rate:
Medical, Drugs
4.50-8.00%
Dental, Vision
4.50%
Actuarial assumptions used in the June 30, 2023 valuation were projected on an on-going plan basis.
This assumption does not necessarily imply that an obligation to continue the plan actually exists.
Future Salary Increase
Consistent with the June 30, 2024, valuations of the Arizona State Retirement System (ASRS) Plan and
the Arizona Public Safety Personnel Retirement System (PSPRS) Plan. The ASRS salary increase
assumption has been updated since the prior valuation based on the 2024 ASRS experience study.
Salary increases assumptions range from 2.9% to 15.0%, based on years of service and the applicable
plan.
Aging Factors
The age morbidity curve was developed by Dale Yamamoto for the Society of Actuaries. This curve is
used to measure the annual increases in per capita claim costs for each age as well as relative cost by
gender, adjusting the male age 65 per capita claims cost. The factors range from 0.4612 to 1.6944,
based on age and gender.
Cost, Contribution and Premium Trend Rates
Medical and prescription drug costs and administrative costs are assumed to increase according to the
rates below. This assumption is consistent with the prior valuation. The initial medical trend rate was
developed using the National Health Care Trend Survey. The survey gathers information of trend
expectations for the coming year from various insurers and PBMs. These trends are broken out by drug
and medical, as well as type of coverage (e.g., PPO, HMO, POS). The healthcare cost trend range is
4.5% to 8.0%.
f. Discount Rate
The discount rate at the measurement date is 4.21%. The discount rate increased from 4.13% as of June
30, 2023, to 4.21% as of June 30, 2024. Benefit payments are funded on a pay-as-you-go basis. The
discount rate is based on the S&P Municipal Bond 20 Year High Grade Rate Index as of June 30, 2024.
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
85
g. Changes in OPEB Liability
The below table outlines the changes in OPEB Liability for the fiscal year ending June 30, 2025 (in
thousands):
OPEB Liability at Beginning of Year
$
914,548
Service Cost
31,496
Interest
38,479
Differences between Expected and Actual Experience
(2,539)
Changes in Assumptions
11,038
Employer contributions *
(28,991)
Net Change in Total OPEB Liability
49,483
OPEB Liability at End of Year
$
964,031
* Because the City funds OPEB benefits on a “pay-as-you-go” basis, employer
contributions are equal to benefit payments.
The City’s benefit payments to the plan were paid 88.55% from governmental funds, 2.9% from internal
service funds, and 8.55% from enterprise funds.h. Sensitivity of the City’s OPEB Liability to Changes
in the Discount Rate and the Healthcare Cost Trend Rates
The following table presents the City’s net OPEB liabilities calculated using the municipal bond rates and
healthcare cost trend rates noted above, as well as what the City’s net OPEB liability would be if it were
calculated using rate that is 1 percentage point lower or 1 percentage point higher than the current rate (in
thousands):
1% Decrease
Current Municipal
Bond Rate
1% Increase
City OPEB Plan
$
1,117,722
$
964,031
$
840,444
1% Decrease
Current Healthcare
Trend Rate
1% Increase
City OPEB Plan
$
830,617
$
964,031
$
1,133,594
City of Mesa, Arizona
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
86
C I T Y O F M E S A , A Z
REQUIRED SUPPLEMENTARY
INFORMATION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
Arizona State Retirement System
Reporting Fiscal Year
(Measurement Date)
2025
2024
2023
2022
(2024)
(2023)
(2022)
(2021)
City's Proportion of Net Pension Liability
1.7210%
1.6149%
1.6156%
1.5857%
City's Proportionate Share of Net Pension Liability
$ 275,386
$ 261,311
$ 263,694
$ 208,353
City's Covered Payroll
$ 241,163
$ 211,155
$ 192,542
$ 178,405
City's Proportionate Share of Net Pension Liability
as a Percentage of its Covered Payroll
114.19%
123.75%
136.95%
116.79%
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
76.93%
75.47%
74.26%
78.58%
See accompanying notes to pension plan schedules.
City of Mesa, Arizona
Schedule of the City's Proportionate Share of Net Pension Liability
Cost-Sharing Pension Plan
June 30, 2025
(in thousands)
87
Reporting Fiscal Year
(Measurement Date)
2021
2020
2019
2018
2017
2016
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
1.6188%
1.6209%
1.6293%
1.6416%
1.6605%
1.6393%
$ 280,473
$ 235,853
$ 227,233
$ 255,729
$ 268,013
$ 255,337
$ 175,767
$ 168,900
$ 162,089
$ 158,958
$ 155,868
$ 151,154
159.57%
139.64%
140.19%
160.88%
171.95%
168.93%
69.33%
73.24%
73.40%
69.92%
67.06%
68.35%
88
Personal Safety Personnel Retirement System - Fire
Reporting Fiscal Year
(Measurement Date)
2025
2024
2023
2022
(2024)
(2023)
(2022)
(2021)
Total Pension Liability
Service Cost
$
10,101
$
9,175
$
8,079
$
7,645
Interest on the Total Pension Liability
38,618
36,294
34,277
32,539
Changes of Benefit Terms
-
-
-
-
Diff Between Expected and Actual Experience
in the Measurement of the Pension Liability
18,462
13,651
11,356
7,760
Changes of Assumptions or Other Inputs
-
-
6,706
-
Benefit Payments, Including Refunds
of Employee Contributions
(27,833)
(27,696)
(26,268)
(22,868)
Net Change in Total Pension Liability
39,348
31,423
34,150
25,076
Total Pension Liability - Beginning
540,182
508,759
474,607
449,531
Total Pension Liability - Ending (a)
579,530
540,182
508,757
474,607
Plan Fiduciary Net Position
Contributions - Employer
32,664
26,733
28,025
21,601
Contributions - Employee
3,990
3,776
3,507
3,321
Net Investment Income
29,201
20,023
(10,644)
56,815
Benefit Payments, Including Refunds
of Employee Contributions
(27,833)
(27,696)
(26,268)
(22,868)
Hall/Parker Settlement
-
-
-
-
Administrative Expense
(177)
(136)
(192)
(266)
Other Changes
-
-
-
-
Net Change in Plan Fiduciary Net Position
37,845
22,699
(5,572)
58,603
Plan Fiduciary Net Position - As Previously Reported
278,421
255,722
261,293
202,690
Adjustment to Beginning Balance
-
-
-
-
Plan Fiduciary Net Position - Beginning
278,421
255,722
261,293
202,690
Plan Fiduciary Net Position - Ending (b)
316,266
278,421
255,721
261,293
City's Net Pension Liability - Ending (a) - (b)
$
263,264
$
261,761
$
253,036
$
213,314
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
54.57%
51.54%
50.26%
55.05%
City's Covered Payroll
$
48,048
$
39,896
$
36,776
$
34,198
City's Net Pension Liability as a Percentage
of its Covered Payroll
547.91%
656.11%
688.05%
623.76%
City of Mesa, Arizona
Schedule of Changes in the City's Net Pension/OPEB Liability and Related Ratios
Agent Plans
June 30, 2025
(in thousands)
89
See accompanying notes to pension plan schedules
Reporting Fiscal Year
(Measurement Date)
2021
2020
2019
2018
2017
2016
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
$
7,871
$
7,663
$
7,271
$
7,724
$
6,439
$
6,127
31,397
29,147
27,446
25,687
23,654
23,086
-
-
-
2,125
21,380
-
(221)
11,844
1,951
(2,670)
(4,423)
(3,518)
-
8,488
-
12,613
11,970
-
(23,473)
(18,809)
(16,608)
(17,095)
(19,893)
(17,323)
15,574
38,333
20,060
28,384
39,127
8,372
433,957
395,624
375,564
347,180
308,053
299,681
449,531
433,957
395,624
375,564
347,180
308,053
18,107
16,708
16,733
13,558
12,735
9,828
2,845
2,805
3,035
3,923
4,396
3,847
2,587
10,339
12,464
19,308
954
5,878
(23,473)
(18,809)
(16,608)
(17,095)
(19,893)
(17,323)
-
-
(5,150)
-
-
-
(211)
(181)
(190)
(174)
(138)
(144)
58
-
2
43
(12)
45
(87)
10,862
10,286
19,563
(1,958)
2,131
202,777
191,986
181,700
162,137
164,095
161,964
-
(71)
-
-
-
-
202,777
191,915
181,700
162,137
164,095
161,964
202,690
202,777
191,986
181,700
162,137
164,095
$
246,841
$
231,180
$
203,638
$
193,864
$ 185,043
$
143,958
45.09%
46.73%
48.53%
48.38%
46.70%
53.27%
$
32,562
$
34,136
$
32,445
$
32,941
$
32,453 %
$
31,661
758.06%
677.23%
627.64%
588.52%
570.19%
454.69%
90
Personal Safety Personnel Retirement System - Police Pension
Reporting Fiscal Year
(Measurement Date)
2025
2024
2023
2022
(2024)
(2023)
(2022)
(2021)
Total Pension Liability
Service Cost
$
15,642
$
14,824
$
13,979
$
13,861
Interest on the Total Pension Liability
71,984
67,540
64,052
61,557
Changes of Benefit Terms
-
-
-
-
Diff Between Expected and Actual Experience
in the Measurement of the Pension Liability
34,992
29,045
18,155
2,112
Changes of Assumptions or Other Inputs
-
-
10,488
-
Benefit Payments, Including Refunds
of Employee Contributions
(52,375)
(48,622)
(45,167)
(41,764)
Net Change in Total Pension Liability
70,243
62,787
61,507
35,766
Total Pension Liability - Beginning
1,010,327
947,541
886,034
850,268
Total Pension Liability - Ending (a)
1,080,570
1,010,327
947,541
886,034
Plan Fiduciary Net Position
Contributions - Employer
62,164
55,209
53,349
38,561
Contributions - Employee
7,300
6,897
6,608
6,268
Net Investment Income
53,977
36,571
(19,142)
101,528
Benefit Payments, Including Refunds
of Employee Contributions
(52,375)
(48,622)
(45,167)
(41,764)
Hall/Parker Settlement
-
-
-
-
Administrative Expense
(370)
(288)
(345)
(477)
Other Changes
-
(7)
-
-
Net Change in Plan Fiduciary Net Position
70,696
49,759
(4,697)
104,116
Plan Fiduciary Net Position - As Previously Reported
511,948
462,190
466,887
362,771
Adjustment to Beginning Balance
-
-
-
-
Plan Fiduciary Net Position - Beginning
511,948
462,190
466,887
362,771
Plan Fiduciary Net Position - Ending (b)
582,644
511,949
462,190
466,887
City's Net Pension Liability - Ending (a) - (b)
$
497,926
$ 498,379
$ 485,351
$ 419,147
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
53.92%
50.67%
48.78%
52.69%
City's Covered Payroll
$
86,055
$
73,451
$
68,471
$
64,419
City's Net Pension Liability as a Percentage
of its Covered Payroll
578.61%
678.52%
708.84%
650.66 %
See accompanying notes to pension plan schedules
City of Mesa, Arizona
Schedule of Changes in the City's Net Pension/OPEB Liability and Related Ratios
Agent Plans
June 30, 2025
(in thousands)
91
Reporting Fiscal Year
(Measurement Date)
2021
2020
2019
2018
2017
2016
(2020)
(2019)
(2018)
(2017)
(2016)
(2015)
$
14,016
$
15,015
$
13,826
$
15,841
$
12,438
$
12,216
57,794
53,953
50,926
47,572
43,573
41,908
-
-
-
5,718
34,005
-
19,067
10,259
3,862
365
(4,001)
(2,173)
-
21,092
-
19,037
23,614
-
(36,572)
(36,864)
(34,755)
(32,522)
(31,689)
(29,998)
54,305
63,455
33,859
56,011
77,940
21,953
795,963
732,508
698,649
642,638
564,698
542,745
850,268
795,963
732,508
698,649
642,638
564,698
34,340
32,387
31,596
26,819
24,067
19,680
6,045
5,718
6,058
7,693
8,157
7,613
4,551
18,270
21,889
34,221
1,667
10,065
(36,572)
(36,864)
(34,754)
(32,522)
(31,689)
(29,998)
-
-
(10,096)
-
-
-
(371)
(319)
(333)
(360)
(240)
(246)
(2)
340
514
420
382
28
7,991
19,532
14,874
36,271
2,344
7,142
354,780
335,631
320,757
284,432
282,088
274,946
-
(383)
-
-
-
-
354,780
335,248
320,757
284,432
282,088
274,946
362,771
354,780
335,631
320,757
284,432
282,088
$ 487,497
$ 441,183
$ 396,877
$ 377,892
$ 358,206
$ 282,610
42.67%
44.57%
45.82%
45.91%
44.26%
49.95%
$
63,232
$
63,993
$
63,003
$
64,740
$
61,211
$
62,461
770.97%
689.42%
629.93%
583.71%
585.20%
452.46%
92
Personal Safety Personnel Retirement System - Police OPEB
Reporting Fiscal Year
(Measurement Date)
2025
2024
2023
2022
(2024)
(2023)
(2022)
(2021)
Total OPEB Liability
Service Cost
$
237
$
250
$
280
$
351
Interest on the Total OPEB Liability
1,589
1,568
1,537
1,511
Changes of Benefit Terms
-
-
-
-
Diff Between Expected and Actual Experience
in the Measurement of the OPEBLiability
115
155
218
100
Changes of Assumptions or Other Inputs
-
-
312
-
Benefit Payments, Including Refunds
of Employee Contributions
(1,690)
(1,640)
(1,571)
(1,494)
Net Change in Total OPEB Liability
251
331
776
468
Total OPEB Liability - Beginning
22,671
22,341
21,565
21,097
Total OPEB Liability - Ending (a)
22,922
22,672
22,341
21,565
Plan Fiduciary Net Position
Contributions - Employer
1,311
1,050
946
853
Contributions - Employee
-
44
32
88
Net Investment Income
1,064
784
(448)
2,583
Benefit Payments, Including Refunds
of Employee Contributions
(1,690)
(1,640)
(1,571)
(1,494)
Administrative Expense
(7)
(7)
(8)
(10)
Net Change in Plan Fiduciary Net Position
678
231
(1,049)
2,020
Plan Fiduciary Net Position - As Previously Reported
11,171
10,940
11,989
9,969
Adjustment to Beginning Balance
-
-
-
-
Plan Fiduciary Net Position - Beginning
11,171
10,940
11,989
9,969
Plan Fiduciary Net Position - Ending (b)
11,849
11,171
10,940
11,989
City's Net OPEB Liability - Ending (a) - (b)
$
11,074
$
11,501
$
11,401
$
9,576
Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability
51.69%
49.27%
48.97%
55.59%
City's Covered Payroll
$
86,055
$
73,451
$
68,471
$
64,419
City's Net OPEB Liability as a Percentage
of its Covered Payroll
12.87%
15.66%
16.65%
14.87%
See accompanying notes to pension plan schedules
City of Mesa, Arizona
Schedule of Changes in the City's Net Pension/OPEB Liability and Related Ratios
Agent Plans
June 30, 2025
(in thousands)
93
Reporting Fiscal Year
(Measurement Date)
2021
2020
2019
2018
2017
through
2015
(2020)
(2019)
(2018)
(2017)
Information
$
322
$
200
$
190
$
213
not
1,477
1,416
1,359
1,356
available
-
-
-
35
381
43
472
312
-
474
-
(335)
(1,455)
(1,391)
(1,325)
(1,239)
725
742
696
342
20,372
19,630
18,934
18,592
21,097
20,372
19,630
18,934
934
736
231
639
46
14
-
-
123
530
695
1,141
(1,455)
(1,391)
(1,325)
(1,239)
(10)
(9)
(11)
(10)
(362)
(120)
(410)
531
10,331
10,067
10,477
9,946
-
384
-
-
10,331
10,451
10,477
9,946
9,969
10,331
10,067
10,477
$
11,128
$
10,041
$
9,563
$
8,457
47.25%
50.71%
51.28%
55.33%
$
63,232
$
63,993
$
63,003
$
64,740
17.60%
15.69%
15.18%
13.06%
94
Arizona State Retirement System
2025
2024
2023
2022
Statutorily Required Contribution
$
29,853
$
28,965
$
25,129
$
23,097
City's Contribution in Relation to the
Statutorily Required Contribution
29,853
28,965
25,129
23,097
City's Contribution (Deficiency) / Excess
$
-
$
-
$
-
$
-
City's Covered Payroll
$
248,092
$
232,139
$
211,155
$
192,542
City's Contributions as a Percentage of Covered
Payroll
12.03%
12.48%
11.90%
12.00%
Public Safety Personnel Retirement System - Fire Pension
2025
2024
2023
2022
Actuarially Determined Contribution
$
27,060
$
27,751
$
22,569
$
20,178
City's Contribution in Relation to the
Actuarially Determined Contribution
31,267
30,800
26,388
27,797
City's Contribution (Deficiency) / Excess
$
4,207
$
3,049
$
3,819
$
7,619
City's Covered Payroll
$
46,625
$
48,048
$
39,896
$
36,776
City's Contributions as a Percentage of Covered
Payroll
67.06%
64.10%
66.14%
75.58%
See accompanying notes to plan schedules
City of Mesa, Arizona
Schedule of City Pension Contributions
June 30, 2025
(in thousands)
95
2021
2020
2019
2018
2017
2016
$
20,763
$
20,258
$
19,124
$
17,650
$
17,423
$
16,955
20,763
20,258
19,124
17,650
17,423
16,955
$
-
$
-
$
-
$
-
$
-
$
-
$
178,405
$
175,767
$
169,900
$
162,089
$
158,958
$
155,868
11.64%
11.53%
11.26%
10.89%
10.96%
10.88%
2021
2020
2019
2018
2017
2016
$
19,617
$
18,035
$
16,431
$
14,289
$
13,490
$
11,197
19,617
18,035
16,431
10,479
13,490
12,735
$
-
$
-
$
-
$
(3,810)
$
-
$
1,538
$
34,198
$
32,562
$
34,136
$
32,446
$
32,941
$
32,453
57.36%
55.39%
48.13%
32.30%
40.95%
39.24%
96
Public Safety Personnel Retirement System - Police Pension
2025
2024
2023
2022
Actuarially Determined Contribution
$
48,740
$
49,162
$
42,430
$
37,457
City's Contribution in Relation to the
Actuarially Determined Contribution
60,857
62,062
55,116
53,372
City's Contribution (Deficiency) / Excess
$
12,117
$
12,900
$
12,686
$
15,915
City's Covered Payroll
$
82,571
$
86,055
$
73,451
$
68,471
City's Contributions as a Percentage of Covered
Payroll
73.70%
72.12%
75.04%
77.95%
Public Safety Personnel Retirement System - Police OPEB
2025
2024
2023
2022
Actuarially Determined Contribution
$
1,147
$
1,184
$
1,024
$
838
City's Contribution in Relation to the
Actuarially Determined Contribution
1,147
1,184
1,024
838
City's Contribution (Deficiency) / Excess
$
-
$
-
$
-
$
-
City's Covered Payroll
$
82,571
$
86,055
$
73,451
$
68,471
City's Contributions as a Percentage of Covered
Payroll
1.39%
1.38%
1.39%
1.22%
See accompanying notes to plan schedules.
City of Mesa, Arizona
Schedule of City Pension Contributions
June 30, 2025
(in thousands)
97
2021
2020
2019
2018
2017
2016
$
37,484
$
34,308
$
29,314
$
29,048
$
26,809
$
21,697
37,484
34,308
29,314
21,726
26,809
21,697
$
-
$
-
$
-
$
(7,322)
$
-
$
-
$
64,419
$
63,232
$
63,993
$
63,003
$
64,740
$
61,211
58.19%
54.26%
45.81%
34.48%
41.41%
39.32%
2021
2020
2019
2018
2017
2016
$
713
$
815
$
733
$
772
$641
Information
not
713
815
733
772
$641
available
$
-
$
-
$
-
$
-
$
-
$
64,419
$
63,232
$
63,993
$
63,003
$
64,740
1.11%
1.29%
1.15%
1.23%
0.99 %
98
Note 1 - Actuarially determined contribution rates
Actuarially determined contribution rates for PSPRS are calculated as of June 30 two years prior to the end of the fiscal year in
which contributions are made. The actuarial methods and assumptions used to establish the contribution requirements are as
follows:
Actuarial Cost Method Entry age normal
Amortization Method
Level percent of payroll, closed
Remaining Amort Period 15 years of unfunded actuarial accrued liability, 15 years of excess
Asset Valuation Method 7-year smoothed market value; 20% market value 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 the 2017 actuarial valuation, the investment rate of return was decreased from 7.5% to 7.4%
In the 2016 actuarial valuation, the investment rate of return was decreased from 7.85% to 7.5%
PSPRS members with initial membership on or after July 1, 2017: 7%
Project Salary Increases
In the 2017 actuarial valuation, projected salary increases were decreased from 4.0%-8.0% to 3.5%-7.5%.
Wage Growth
In the 2022 actuarial valuation, wage growth was changed from 3.5% to a range of 3.0% - 6.25%
In the 2017 actuarial valuation, wage growth was decreased from 4.0%-3.5%.
Retirement Age
Experienced-based table of rates is specific to the type of eligibility condition. Last updated for the 2012
valuation pursuant to an experience study for the period July 1, 2006-June 30, 2011
Mortality
RP-2000 mortality table (adjusted by 105% for both males and females).
In the 2017 actuarial valuation, changed to RP 2014 tables with 75% of MP 2016 fully generational
projection scales.
Note 2 - Factors that affect trends
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit
increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those
provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS changed benefit terms to
reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to
explicitly value future permanent benefit increases. PSPRS also reduced those members’ employee contribution rates. These
changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired
as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s
effective date. These changes also increased the PSPRS required pension contributions beginning in fiscal year 2016 for members
who were retired as of the law’s effective date. These changes will increase 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. PSPRS allowed the City to reduce its actual employer
contributions for the refund amounts. As a result, the City’s pension contributions were less than the actuarially or statutorily
determined contributions for 2018.
City of Mesa, Arizona
Notes to Pension Plan Schedules
June 30, 2025
(in thousands)
99
2025
2024
2023
2022
Total Liability
Service Cost
$
31,496
$
16,117
$
24,665
$
26,157
Interest on the Total Liability
38,479
32,007
21,603
25,492
Changes of Benefit Terms
-
104,183
-
-
Difference Between Expected and Actual Experience
in the Measurement of the Liability
(2,539)
26,605
(1,720)
26,062
Changes of Assumptions or Other Inputs
11,038
(19,003)
(221,049)
(21,298)
Benefit Payments, Including Refunds of Employee
Contributions
(28,991)
(23,408)
(23,491)
(21,010)
Net Change in Total OPEB Liability
49,484
136,502
(199,992)
35,403
Total OPEB Liability - Beginning
914,547
778,045
978,037
942,634
Total OPEB Liability - Ending
$ 964,031
$ 914,547
$ 778,045
$ 978,037
City's Covered Employee Payroll
$ 375,266
$ 323,910
$ 297,789
$ 277,022
City's Contributions as a % of Covered Employee
Payroll
7.7 %
7.2 %
7.9 %
7.6 %
Note: The City funds OPEB benefits on a “pay-as-you-go” basis. Therefore, there are no assets
accumulated in a trust that meet the criteria of GASB 75. In addition, employer contributions are equal to
benefit payments.
City of Mesa, Arizona
Schedule of Changes in the City’s Total OPEB Liability
June 30, 2025
(in thousands)
100
2021
2020
2019
2018
2017
through
2015
Information
$
24,165
$
20,818
$
19,997
$
21,430
not
25,425
22,584
22,447
20,112
available
-
-
-
-
(2,548)
34,022
(1,133)
-
18,858
92,823
17,023
(46,955)
(20,641)
(19,687)
(17,232)
(19,013)
45,259
150,560
41,102
(24,426)
897,375
746,815
705,713
730,139
$
942,634
$
897,375
$
746,815
$ 705,713
$
271,561
$
268,029
$
257,537
$
256,639
7.6 %
7.3 %
6.7 %
7.4 %
101
Budgeted Amounts
Actual-
Budgetary
Variance with
Original
Final
Basis
Final Budget
City Total Resources
$2,690,000
$2,690,000
$2,652,918
$37,082
City Total Expenditures
2,690,000
2,690,000
1,937,895
1,937,895
Net Change in Fund Balances
-
-
715,023
(1,900,813)
Fund Balance - Beginning
1,229,318
1,229,318
1,229,318
-
Fund Balance - Ending
$1,229,318
$1,229,318
$1,944,341
(715,023)
Note: The City of Mesa's legally adopted budget is at the Citywide level and includes all governmental
and proprietary funds. Legal control over the budget derives from State statutes that prohibit the City from
exceeding its adopted budget. Transfers between funds and departmental groups may be made upon City
Manager approval and do not require Council action or approval.
See accompanying note to budgetary comparison schedule.
City of Mesa, Arizona
Budgetary Comparison Schedule (Non-GAAP Basis)
Combined Governmental & Enterprise Funds
For the Fiscal year Ended June 30, 2025
(In thousands)
102
The financial statements for the City are prepared in accordance with generally accepted accounting
principles – “GAAP basis”. Since Mesa, like most other Arizona cities, prepares its annual budget on a
modified cash basis that differs from the “GAAP basis”, a reconciliation is performed. Adjustments
necessary to convert the results of operations of the governmental and proprietary funds for the year
ended June 30, 2025 on the “GAAP basis” to the “budget basis” as follows:
Net Change in Fund Balance-Budget Basis-
$
715,023
Bond related
(226,314)
Capital Related Items
(293,303)
Depreciation and Amortization
(65,944)
Lease Related items
1,919
Differences in Revenue Recognition
24,121
Payroll and Other Accruals
3,630
Pension and OPEB Expense
2,004
Joint Ventures - Change in Equity
(8,797)
Unrealized Gain on Investments
28,318
Net Change in Fund Balance-GAAP Basis -
$
180,657
Note: The City of Mesa's legally adopted budget is at the Citywide level and includes all governmental
and proprietary funds. Legal control over the budget derives from State statutes that prohibit the City from
exceeding its adopted budget. Transfers between funds and departmental groups may be made upon City
Manager approval and do not require Council action or approval.
City of Mesa, Arizona
Notes to Budgetary Comparison Schedule
June 30, 2025
(in thousands)
103
C I T Y O F M E S A , A Z
COMBINING STATEMENTS
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Cemetery is designed to provide an accumulation of monies from which the interest earnings will
provide perpetual care of the Cemetery.
Community Facilities District accounts for the operations of the Eastmark 1, Eastmark 2 and
Cadence Community Facilities Districts which are paid from special assessments levied against
the benefited properties.
Development Impact Fees are designed to provide a balance of monies to ensure that new
development bears a proportionate share of the cost of improvements to the City’s parks,
libraries, fire facilities and equipment, police facilities and equipment, and storm sewers. These
funds are provided through the collection of development impact fees.
Environmental Compliance accounts for expenditures that are a result of federal and state
environmental requirements. Financing for this fund is derived from a monthly environmental
compliance fee that is charged to each utility customer.
Highway User Revenue accounts for capital projects and maintenance of the City’s streets and
highways, as mandated by the Arizona Revised Statutes. Financing for this fund is provided by
the state shared fuel taxes.
Mesa Arts Center Restoration is designed to provide an accumulation of monies to be used to
replace or refurbish the Mesa Arts Center facilities. These funds are provided through a fee on all
ticketed events at the facility.
Mesa Housing Authority accounts for federal expenditures of the City’s housing assistance
programs that provide rent subsidy payments to private sector owners of dwelling units.
Other Restricted Funds accounts for federal and state grant expenditures and other City
programs. The principle financing source is federal and state grant revenues.
Public Safety Sales Tax accounts for expenditures of the voter-approved sales tax dedicated to
Public Safety.
Quality of Life Sales Tax accounts for expenditures of the voter-approved sales tax to improve
the quality of life for Mesa residents.
Relief Fund accounts for federal expenditures dedicated to supporting the City’s response to
COVID 19.
Street Sales Tax accounts for expenditures of the voter-approved sales tax that is used as the
City match for the MAG Proposition 400 sales tax funds and also provides a local revenue source
that is dedicated for street programs.
Capital Projects Funds
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds and special revenue funds.
Community Facilities District accounts for the bond proceeds to be used for the costs of
construction of drains, basins, channels and other storm sewer improvements and street
improvements in the Eastmark 1, Eastmark 2 and Cadence Community Facilities Districts.
General Capital Projects accounts for the costs of general City construction projects and for
expenditures related to the acquisition of replacement vehicles for the City’s governmental funds.
The funds are provided through bonds, excise tax obligations and transfers from the City’s
General Fund
Parks accounts for the bond proceeds to be used for the costs of park facilities and
improvements.
Public Safety accounts for the bond proceeds to be used for the cost of public safety facilities.
Streets accounts for the bond proceeds to be used for the cost of right-of-way acquisitions and
street improvements.
Debt Service Funds
These funds are established to account for the accumulation of resources for, and the payment of,
principal and interest not serviced by the Enterprise Fund.
Community Facilities District accumulates monies for the payment of Eastmark 1, Eastmark 2
and Cadence Community Facilities District Bonds that are issued to finance the costs of
improvements which are to be paid from special assessments levied against the benefited
properties.
Excise Tax Obligations accumulates monies for the payment of principal and interest
requirements of the City’s Excise Tax Obligation Bonds.
General Obligation Bonds accumulates monies for the payment of principal and interest
requirements of the City’s General Obligation Bonds.
Highway User Revenue Bonds accumulates monies for the payment of principal and interest
requirements of the City’s Highway User Revenue Bonds.
Special Revenue Funds
Cemetery
Community
Facilities
District
Development
Impact Fees
Environmental
Compliance
Highway
User
Revenue
Assets
Pooled Cash and Investments
$
3,321
$
1,670
$
19,931
$
20,280
$
39,628
Accounts Receivable, Net
12
-
-
90
22
Accrued Interest Receivable
13
5
-
79
194
Due from Other Governments
-
4
-
-
4,945
Prepaid Costs
-
-
-
12
25
Restricted Assets:
Pooled Cash and Investments
-
-
-
-
-
Cash with Fiscal Agent
-
-
-
-
-
Accounts Receivable
-
-
-
-
-
Due from Other Governments
-
-
-
-
-
Total Assets
$
3,346
$
1,679
$
19,931
$
20,461
$
44,814
Liabilities
Accounts Payable and Accrued
$
-
$
59
$
9
$
1,135
$
3,395
Customer and Defendant Deposits
-
-
-
-
-
Unearned Revenue
-
70
-
-
-
Payable from Restricted Assets:
Accrued Interest Payable
-
-
-
-
-
Matured Bonds Payable
-
-
-
-
-
Total Liabilities
-
129
9
1,135
3,395
Deferred Inflows of Resources
Unavailable Revenue
3
-
-
-
-
Total Deferred Inflows of Resources
3
-
-
-
-
Fund Balance
Nonspendable
-
-
-
12
25
Restricted
-
1,550
19,922
-
41,394
Committed
3,343
-
-
19,314
-
Assigned
-
-
-
-
-
Total Fund Balances
3,343
1,550
19,922
19,326
41,419
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
$
3,346
$
1,679
$
19,931
$
20,461
$
44,814
City of Mesa, Arizona
Combining Balance Sheet
Non-Major Governmental Funds
For the Fiscal year Ended June 30, 2025
(in thousands)
104
Special Revenue Funds
Mesa Arts
Center
Restoration
Mesa
Housing
Authority
Other
Restricted
Funds
Public
Safety
Sales Tax
Quality of
Life Sales
Tax
Relief
Fund
Street
Sales Tax
Total Special
Revenue Funds
$
1,875
$
2,579
$
16,301
$ 60,449
$ 41,595
$ 22,445
$ 120,171 $
350,245
6
94
3,147
14
-
-
1,160
4,545
7
-
74
236
156
-
465
1,229
-
1,546
2,686
6,678
6,682
-
8,098
30,639
-
-
49
93
-
531
48
758
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
1,888
$
4,219
$
22,257
$ 67,470
$ 48,433
$ 22,976
$ 129,942 $
387,416
$
31
$
676
$
1,512
$
308
$
-
$
3,295
$
2,133 $
12,553
-
-
-
-
-
-
8,337
8,337
276
1,571
1,340
-
-
16,256
-
19,513
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
307
2,247
2,852
308
-
19,551
10,470
40,403
1
-
2,081
-
-
-
188
2,273
1
-
2,081
-
-
-
188
2,273
-
-
49
93
-
531
48
758
-
1,972
14,967
67,069
48,433
2,894
119,236
317,437
1,580
-
2,089
-
-
-
-
26,326
-
-
219
-
-
-
-
219
1,580
1,972
17,324
67,162
48,433
3,425
119,284
344,740
$
1,888
$
4,219
$
22,257
$ 67,470
$ 48,433
$ 22,976
$ 129,942 $
387,416
105
Capital Projects Funds
Community
Facilities
District
General
Capital
Projects
Parks
Public
Safety
Streets
Total
Capital
Projects
Funds
Assets
Pooled Cash and Investments
$
-
$ 98,704 $
-
$
-
$ 77,491
$ 176,195
Accounts Receivable, Net
-
74
13
-
124
211
Accrued Interest Receivable
-
401
66
265
292
1,024
Due from Other Governments
-
-
-
-
2,597
2,597
Prepaid Costs
-
85
-
-
-
85
Restricted Assets:
Pooled Cash and Investments
-
4,822
17,233
54,336
-
76,391
Cash with Fiscal Agent
-
-
-
-
-
-
Accounts Receivable
-
-
-
-
-
-
Due from Other Governments
-
-
-
-
-
-
Total Assets
$
-
$ 104,086 $ 17,312
$ 54,601
$ 80,504
$ 256,503
Liabilities
Accounts Payable and Accrued
$
-
$ 10,866 $
689
$
762
$ 5,598
$
17,915
Customer and Defendant Deposits
-
-
-
-
-
-
Unearned Revenue
-
-
-
-
5,414
5,414
Payable from Restricted Assets:
Accrued Interest Payable
-
-
-
-
-
-
Matured Bonds Payable
-
-
-
-
-
-
Total Liabilities
-
10,866
689
762
11,012
23,329
Deferred Inflows of Resources
Unavailable Revenue
-
-
-
-
488
488
Total Deferred Inflows of Resources
-
-
-
-
488
488
Fund Balance
Nonspendable
-
85
-
-
-
85
Restricted
-
118
16,623
53,839
69,004
139,584
Committed
-
-
-
-
-
-
Assigned
-
93,017
-
-
-
93,017
Total Fund Balances
-
93,220
16,623
53,839
69,004
232,686
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $
–
$ 104,086 $ 17,312
$ 54,601
$ 80,504
$ 256,503
City of Mesa, Arizona
Combining Balance Sheet
Non-Major Governmental Funds
For the Fiscal year Ended June 30, 2025
(in thousands)
106
Debt Service Funds
Community
Facilities
District
Excise Tax
Obligations
General
Obligation
Bonds
Highway
User
Revenue
Bonds
Total Debt
Service Funds
Total Non-Major
Governmental
Funds
$
-
$
-
$
-
$
- $
-
$
526,440
-
-
-
-
-
4,756
32
-
1,245
-
1,277
3,530
-
-
-
-
-
33,236
-
-
-
-
-
843
8,432
-
2,216
-
10,648
87,039
1,194
2,037
40,958
11,273
55,462
55,462
19,740
-
-
-
19,740
19,740
92
-
1,146
-
1,238
1,238
$
29,490
$
2,037
$
45,565
$
11,273 $
88,365
$
732,284
$
-
$
-
$
-
$
- $
-
$
30,468
4
-
-
-
4
8,341
-
-
-
-
-
24,927
1,827
662
7,213
393
10,095
10,095
3,566
1,375
33,745
10,880
49,566
49,566
5,397
2,037
40,958
11,273
59,665
123,397
19,770
-
503
-
20,273
23,034
19,770
-
503
-
20,273
23,034
-
-
-
-
-
843
4,323
-
4,104
-
8,427
465,448
-
-
-
-
-
26,326
-
-
-
-
-
93,236
4,323
-
4,104
-
8,427
585,853
$
29,490
$
2,037
$
45,565
$
11,273 $
88,365
$
732,284
(Concluded)
107
Special Revenue Funds
Cemetery
Community
Facilities
District
Development
Impact Fees
Environmental
Compliance
Highway
User
Revenue
Revenues:
Sales Taxes
$
- $
- $
- $
-
$
-
Property Taxes
-
720
-
-
-
Occupancy Taxes
-
-
-
-
-
Special Assessments
-
-
-
-
-
Licenses and Permits
-
-
2,861
-
-
Intergovernmental
-
-
-
-
50,374
Charges for Services
120
-
-
18,255
-
Fines and Forfeitures
-
-
-
-
-
Investment Income (Loss)
199
73
-
1,377
2,933
Contributions
-
-
-
-
-
Miscellaneous Revenues
-
-
-
95
-
Total Revenues
319
793
2,861
19,727
53,307
Expenditures
Current:
General Government
-
298
-
3,602
150
Public Safety
-
-
-
-
-
Community Environment
-
-
-
5,082
23,349
Cultural-Recreational
-
-
-
10,160
-
Debt Services:
Principal Retirement
-
-
-
-
-
Interest on Bonds
-
-
-
-
-
Services Charges
-
-
-
-
-
Cost of Issuance
-
-
-
-
-
Capital Outlay
-
-
-
2,266
16,330
Total Expenditures
-
298
-
21,110
39,829
Excess (Deficiency) of Revenues
Over (Under) Expenditures
319
495
2,861
(1,383)
13,478
Other Financing Sources (Uses):
Transfers In
-
-
-
-
-
Transfers Out
-
-
(4,275)
(6)
(11,683)
Sale of Capital Assets
-
-
-
-
-
Face Amounts of Bonds Issued
-
-
-
-
-
Face Amounts of Leases Issued
-
-
-
-
-
Premium on Issuance of Bonds (Net)
-
-
-
-
-
Total Other Financing Sources (Uses)
-
-
(4,275)
(6)
(11,683)
Net Change in Fund Balances
319
495
(1,414)
(1,389)
1,795
Fund Balances - Beginning
3,024
1,055
21,336
20,715
39,624
Fund Balances - Ending
$
3,343 $
1,550 $
19,922 $
19,326
$
41,419
City of Mesa, Arizona
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal year Ended June 30, 2025
(in thousands)
108
Special Revenue Funds
Mesa Arts
Center
Restoration
Mesa
Housing
Authority
Other
Restricted
Funds
Public
Safety
Sales Tax
Quality of
Life Sales
Tax
Relief
Street Sales
Tax
Total Special
Revenue
Funds
$
-
$
-
$
-
$
41,187
$
41,206
$
-
$
49,448
$
131,841
-
-
-
-
-
-
-
720
-
-
4,342
-
-
-
-
4,342
-
-
-
-
-
-
-
-
-
-
704
-
122
-
246
3,933
-
34,695
13,690
14
-
20,257
154
119,184
-
-
139
-
-
-
5,873
24,387
562
-
712
-
-
-
-
1,274
114
168
1,119
3,855
2,615
2,074
6,925
21,452
-
-
44
-
-
-
-
44
-
-
5,103
(1)
-
-
512
5,709
676
34,863
25,853
45,055
43,943
22,331
63,158
312,886
-
13
10,082
251
254
2,584
4,268
21,502
-
-
4,678
38,803
36,617
2,110
171
82,379
-
33,515
1,150
-
-
5,153
27,630
95,879
-
-
3,600
-
5,378
145
-
19,283
-
-
119
-
-
-
-
119
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
496
299
6,565
6,442
193
5,308
13,942
51,841
496
33,827
26,202
45,496
42,442
15,300
46,011
271,011
180
1,036
(349)
(441)
1,501
7,031
17,147
41,875
-
-
356
-
-
93
-
449
-
-
-
-
-
(5,693)
(116)
(21,773)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
356
-
-
(5,600)
(116)
(21,324)
180
1,036
7
(441)
1,501
1,431
17,031
20,551
1,400
936
17,317
67,603
46,932
1,994
102,253
324,189
$
1,580
$
1,972
$
17,324
$
67,162
$
48,433
$
3,425
$
119,284
$
344,740
109
Capital Projects Funds
Community
Facilities
District
General
Capital
Projects
Parks
Public
Safety
Streets
Total
Capital
Projects
Funds
Revenues:
Sales Taxes
$
-
$
-
$
-
$
-
$
- $
-
Property Taxes
-
-
-
-
-
-
Occupancy Taxes
-
-
-
-
-
-
Special Assessments
-
-
-
-
-
-
Licenses and Permits
-
-
-
-
-
-
Intergovernmental
-
44
-
-
5,884
5,928
Charges for Services
-
-
-
-
204
204
Fines and Forfeitures
-
-
-
-
-
-
Investment Income (Loss)
-
5,652
3
(783)
3,724
8,596
Contributions
-
-
-
-
-
-
Miscellaneous Revenues
-
166
-
-
-
166
Total Revenues
-
5,862
3
(783)
9,812
14,894
Expenditures
Current:
General Government
-
-
-
-
-
-
Public Safety
-
-
-
-
-
-
Community Environment
-
-
-
-
-
-
Cultural-Recreational
-
-
-
-
-
-
Debt Services:
Principal Retirement
-
-
-
-
-
-
Interest on Bonds
-
-
-
-
-
-
Services Charges
-
-
-
-
-
-
Cost of Issuance
-
53
115
489
115
772
Capital Outlay
-
83,486
8,532
24,585
18,763
135,366
Total Expenditures
-
83,539
8,647
25,074
18,878
136,138
Excess (Deficiency) of Revenues
Over (Under) Expenditures
-
(77,677)
(8,644)
(25,857)
(9,066) (121,244)
Other Financing Sources (Uses):
Transfers In
-
71,263
65
44
-
71,372
Transfers Out
(338)
-
(65)
(44)
-
(447)
Sale of Capital Assets
-
211
-
-
-
211
Face Amounts of Bonds Issued
-
10,677
22,935
97,742
22,912
154,266
Face Amounts of Leases Issued
-
-
-
-
-
-
Premium on Issuance of Bonds (Net)
-
1,012
2,173
9,261
2,171
14,617
Total Other Financing Sources (Uses)
(338)
83,163
25,108
107,003
25,083
240,019
Net Change in Fund Balances
(338)
5,486
16,464
81,146
16,017
118,775
Fund Balances - Beginning
338
87,734
159
(27,307)
52,987
113,911
Fund Balances - Ending
$
–
$
93,220
$ 16,623
$
53,839
$ 69,004 $ 232,686
City of Mesa, Arizona
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal year Ended June 30, 2025
(in thousands)
110
Debt Service Funds
Community
Facilities
District
Excise Tax
Obligations
General
Obligation
Bonds
Highway
User
Revenue
Bonds
Total Debt
Service
Funds
Total Nonmajor
Governmental
Funds
$
-
$
-
$
-
$
-
$
-
$
131,841
5,845
-
39,978
-
45,823
46,543
-
-
-
-
-
4,342
1,737
-
-
-
1,737
1,737
-
-
-
-
-
3,933
-
-
-
-
-
125,112
-
108
-
-
108
24,699
-
-
592
-
592
1,866
430
-
798
-
1,228
31,276
-
-
-
-
-
44
-
-
-
-
-
5,875
8,012
108
41,368
-
49,488
377,268
-
-
-
-
-
21,502
-
-
-
-
-
82,379
-
-
-
-
-
95,879
-
-
-
-
-
19,283
3,588
1,375
33,745
10,880
49,588
49,707
3,653
1,324
13,590
786
19,353
19,353
7
2
4
-
13
13
-
-
-
-
-
772
-
-
-
-
-
187,207
7,248
2,701
47,339
11,666
68,954
476,103
764
(2,593)
(5,971)
(11,666)
(19,466)
(98,835)
338
2,593
5,144
11,666
19,741
74,445
-
-
(636)
-
(636)
(5,739)
-
-
-
-
-
211
-
-
-
-
-
154,266
-
-
-
-
-
-
-
-
5
-
5
14,622
338
2,593
4,513
11,666
19,110
237,805
1,102
-
(1,458)
-
(356)
138,970
3,221
-
5,562
-
8,783
446,883
$
4,323
$
–
$
4,104
$
–
$
8,427
$
585,853
(Concluded)
111
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the government and to other government
units, on a cost reimbursement basis.
Warehouse, Maintenance and Services Fund was established to finance and account for
services and commodities furnished by Fleet Support, Materials and Supply, and Printing and
Graphics.
Property and Public Liability Self-Insurance Fund was established to account for the cost of
claims incurred by the City under a self-insurance program.
Workers’ Compensation Self-Insurance Fund was established to account for the costs of
maintaining a self-insurance program for industrial insurance at the City.
Employee Benefits Self-Insurance Fund was established to account for the costs of
maintaining the City’s self-insurance health program
Warehouse,
Maintenance
and Services
Property
and Public
Liability Self
Insurance
Workers’
Compensation
Self Insurance
Employee
Benefits Self
Insurance
Total
Assets
Current Assets:
Pooled Cash and Investments
$
22 $
11,180
$
7,702 $
35,682
$ 54,586
Accounts Receivable
645
-
-
663
1,308
Accrued Premiums Receivable
-
-
-
11
11
Accrued Interest Receivable
-
42
29
91
162
Inventory
14,646
-
-
-
14,646
Deposits and Prepaid Costs
15
1,784
385
-
2,184
Total Current Assets
15,328
13,006
8,116
36,447
72,897
Noncurrent Assets:
Capital Assets, Not Being Depreciated
53
-
-
68
121
Capital Assets, Being Depreciated, Net
3,008
-
-
6,910
9,918
Total Noncurrent Assets
3,061
-
-
6,978
10,039
Total Assets
18,389
13,006
8,116
43,425
82,936
Deferred Outflows of Resources
Pensions and OPEB
3,299
283
254
513
4,349
Total Deferred Outflows of Resources
3,299
283
254
513
4,349
Total Assets and Deferred
Outflows of Resources
21,688
13,289
8,370
43,938
87,285
Liabilities
Current Liabilities
Accounts Payable and Accrued Liabilities
2,102
53
86
3,750
5,991
Claims Payable
-
10,634
22,682
6,630
39,946
Due to Other Funds
4,947
-
-
-
4,947
Current Portion of OPEB Liability
609
30
35
111
785
Current Portion of Compensated Absences
164
14
45
13
236
Total Current Liabilities
7,822
10,731
22,848
10,504
51,905
Long-Term Liabilities
Compensated Absences
823
134
51
141
1,149
Net Pension and OPEB Liability
29,977
2,059
2,039
5,033
39,108
Total Long-Term Liabilities
30,800
2,193
2,090
5,174
40,257
Total Liabilities
38,622
12,924
24,938
15,678
92,162
Deferred Inflows of Resources
Pensions and OPEB
3,565
212
226
622
4,625
Total Deferred Inflows of Resources
3,565
212
226
622
4,625
Net Position
Net Investment in Capital Assets
3,061
-
-
6,978
10,039
Unrestricted
(23,560)
153
(16,794)
20,660
(19,541)
Total Net Position
$
(20,499) $
153
$
(16,794) $
27,638
$ (9,502)
City of Mesa, Arizona
Internal Service Funds
Combining Statement of Net Position
June, 30, 2025
(in thousands)
112
Warehouse,
Maintenance
and Services
Property and
Public
Liability Self
Insurance
Workers’
Compensation
Self Insurance
Employee
Benefits Self
Insurance
Total
Operating Revenues:
Charges For Services:
Warehouse
$
12,077
$
-
$
-
$
-
$
12,077
Fleet Support Services
32,775
-
-
-
32,775
Printing and Graphics
810
-
-
-
810
Self-Insurance Contributions:
Employee
-
-
-
13,971
13,971
City
-
10,359
4,630
90,740
105,729
State Retirement System
-
-
-
5,409
5,409
Other
571
-
-
12,739
13,310
Total Operating Revenues
46,233
10,359
4,630
122,859
184,081
Operating Expenses:
Warehouse, Maintenance & Services:
Warehouse
11,436
-
-
-
11,436
Fleet Support Services
32,211
-
-
-
32,211
Printing and Graphics
943
-
-
-
943
Self-Insurance:
Administrative Costs
-
667
2,052
10,850
13,569
Claims and Premiums Paid
-
6,836
406
127,804
135,046
Total Operating Expenses
44,590
7,503
2,458
138,654
193,205
Operating Income (Loss) Before
1,643
2,856
2,172
(15,795)
(9,124)
Depreciation and Amortization
(282)
-
-
(134)
(416)
Operating Income (Loss)
1,361
2,856
2,172
(15,929)
(9,540)
Nonoperating Revenues (Expense):
Investment Income/(Loss)
(319)
564
567
2,159
2,971
Lease Interest Expenses
-
-
-
(1)
(1)
Gain/(Loss) on Disposal of Capital
5
-
-
-
5
Total Nonoperating Revenues
(314)
564
567
2,158
2,975
Income (Loss) Before Capital
1,047
3,420
2,739
(13,771)
(6,565)
Transfers In
408
-
-
11,148
11,556
Transfers Out
(73)
-
-
(39)
(112)
Change in Net Position
1,382
3,420
2,739
(2,662)
4,879
Total Net Position - Beginning
(21,881)
(3,268)
(19,533)
30,301
(14,381)
Total Net Position - Ending
$
(20,499) $
152
$
(16,794) $
27,639
$
(9,502)
City of Mesa, Arizona
Internal Service Funds
Combining Statement of Revenue, Expenses and Changes in Net Position
For the Fiscal Year Ended June 30, 2025
(In thousands)
113
Warehouse,
Maintenance
and Services
Property
and
Public
Liability
Self
Insurance
Workers’
Compensation
Self Insurance
Employee
Benefits
Self
Insurance
Total
Cash Flows from Operating Activities:
Cash Received from Users
$
46,046 $ 10,359 $
4,630 $
122,405 $ 183,440
Cash Payments to Suppliers
(39,491)
(8,636)
(6,379)
(135,432) (189,938)
Cash Payments to Employees
(7,899)
(942)
(735)
(1,072) (10,648)
Net Cash Provided By/(Used For)
Operating Activities
(1,344)
781
(2,484) $
(14,099) (17,146)
Cash Flows From Noncapital Financing Activities:
Increase in Interfund Payable
1,395
-
-
-
1,395
Transfers In From Other Funds
408
-
-
11,148
11,556
Transfers Out To Other Funds
(73)
-
-
(39)
(112)
Net Cash Provided By/(Used For)
Noncapital Financing Activities
1,730
-
-
11,109 12,839
Cash Flows from Capital and Related
Financing Activities:
Acquisition and Construction of Capital Assets
(50)
-
-
(6,249)
(6,299)
Proceeds from the Sale of Capital Assets
5
-
-
-
5
Principal Paid on Leases
-
-
-
(78)
(78)
Interest Income/(Expense) on Lease
-
-
-
(3)
(3)
Net Cash Provided By/(Used For) Capital
and Related Financing Activities
(45)
-
-
(6,330)
(6,375)
Cash Flows from Investing Activities:
Interest Received on Investments
(319)
560
577
2,243
3,061
Net Cash Provided By/(Used For) Investing
(319)
560
577
2,243
3,061
Net Change in Pooled Cash and Investments
22
1,341
(1,907)
(7,077)
(7,621)
Pooled Cash and Investments at Beginning of
-
9,839
9,609
42,759
62,207
Pooled Cash and Investments at End of Year
$
22 $ 11,180 $
7,702 $
35,682 $ 54,586
City of Mesa, Arizona
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2025
(In thousands)
114
Warehouse,
Maintenance
and Services
Property
and
Public
Liability
Self
Insurance
Workers’
Compensation
Self Insurance
Employee
Benefits
Self
Insurance
Total
Reconciliation of Operating Income/(Loss) to Net
Cash Provided By/(Used For) Operating Activities:
Operating Income/(Loss)
$
1,361 $
2,856 $
2,172 $
(15,929) $ (9,540)
Adjustments to Reconcile Operating Income/
(Loss) to Net Cash Provided By(Used For)
Operating Activities:
Depreciation and Amortization
282
-
-
134
416
Changes in Assets and Liabilities:
(Increase)/Decrease in Receivables
(187)
-
-
(454)
(641)
(Increase)/Decrease in Inventory
(2,662)
-
-
-
(2,662)
(Increase)/Decrease in Deposits and Prepaid
(5)
(266)
(79)
-
(350)
(Increase)/Decrease in Deferred Outflows
(147)
14
(54)
(27)
(214)
Increase/(Decrease) in Accounts Payable
35
51
(61)
989
1,014
Increase/(Decrease) in Pension and OPEB
732
(498)
284
441
959
Increase/(Decrease) in Deferred Inflows
(857)
(80)
5
(117)
(1,049)
Increase/(Decrease) in Other Accrued Expenses
104
(1,296)
(4,751)
864
(5,079)
Total Adjustments
(2,705)
(2,075)
(4,656)
1,830
(7,606)
Net Cash Provided By/(Used for) Operating
$
(1,344) $
781 $
(2,484) $
(14,099) $ (17,146)
Noncash Transactions Affecting Financial Position:
Gain/(Loss) on Disposal of Capital Assets
5
-
-
-
5
City of Mesa, Arizona
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2025
(In thousands)
115
C I T Y O F M E S A , A Z
SUPPLEMENTAL
INFORMATION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
Budgeted Amounts
Original
Final
Actual -
Budgetary
Basis
Variance with
Final Budget
Revenues:
Property Taxes
$
1,026
$
1,026
$
1,026
$
-
Special Assessments
317
317
324
7
Investment Income
-
-
29
29
Contributions
22
22
-
(22)
Total Revenues
1,365
1,365
1,379
14
Expenditures:
Current:
General Government
148
148
36
112
Debt Service:
Principal Retirement
618
618
618
-
Interest on Bonds
616
616
616
-
Service Charges
2
2
2
-
Total Expenditures
1,384
1,384
1,272
112
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(19)
(19)
107
126
Net Change in Fund Balances
(19)
(19)
107
126
Fund Balance - Beginning
771
771
771
-
Fund Balance - Ending
$
752
$
752
$
878
$
126
Note: Cadence is a blended component unit. Budget is approved by the Board at the District Level.
City of Mesa, Arizona
Supplemental Information
Budgetary Comparison Schedule (Non-GAAP Basis)
Cadence Community Facilities Districts
For the Fiscal Year Ended June 30, 2024
(in thousands)
116
Budgeted Amounts
Original
Final
Actual -
Budgetary
Basis
Variance with
Final Budget
Revenues:
Property Taxes
$
5,307
$
5,307
$
5,169
$
(138)
Special Assessments
1,305
1,305
1,369
64
Investment Income
-
-
202
202
Total Revenues
6,612
6,612
6,740
128
Expenditures:
Current:
General Government
567
567
215
352
Debt Service:
Principal Retirement
2,875
2,875
2,762
113
Interest on Bonds
2,916
2,916
2,799
117
Service Charges
5
5
4
1
Capital Outlay
17,000
17,000
-
17,000
Total Expenditures
23,363
23,363
5,780
17,583
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(16,751)
(16,751)
960
17,711
Other Financing Uses:
Face Amount of Bonds Issued
17,000
17,000
-
17,000
Total Other Financing Uses
17,000
17,000
-
17,000
Net Change in Fund Balances
249
249
960
711
Fund Balance - Beginning
3,898
3,898
3,898
-
Fund Balance - Ending
$
4,147
$
4,147
$
4,858
$
711
Note: Eastmark 1 is a blended component unit. Budget is approved by the Board at the District Level.
City of Mesa, Arizona
Supplemental Information
Budgetary Comparison Schedule (Non-GAAP Basis)
Eastmark 1 Community Facilities Districts
For the Fiscal year Ended June 30, 2025
(in thousands)
117
Budgeted Amounts
Original
Final
Actual -
Budgetary
Basis
Variance with
Final Budget
Revenues:
Property Taxes
$
372
$
372
$
371
$
(1)
Special Assessments
43
43
44
1
Investment Income
-
-
12
12
Contributions
76
76
-
(76)
Total Revenues
491
491
427
(64)
Expenditures:
Current:
General Government
118
118
49
69
Debt Service:
Principal Retirement
205
205
208
(3)
Interest on Bonds
239
239
238
1
Service Charges
1
1
1
-
Capital Outlay
1,500
1,500
-
1,500
Total Expenditures
2,063
2,063
496
1,567
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,572)
(1,572)
(69)
1,503
Other Financing Uses:
Face Amount of Bonds Issued
1,500
1,500
-
1,500
Total Other Financing Uses
1,500
1,500
-
1,500
Net Change in Fund Balances
(72)
(72)
(69)
3
Fund Balance - Beginning
293
293
293
-
Fund Balance - Ending
$
221
$
221
$
224
$
3
Note: Eastmark 2 is a blended component unit. Budget is approved by the Board at the District Level.
City of Mesa, Arizona
Supplemental Information
Budgetary Comparison Schedule (Non-GAAP Basis)
Eastmark 2 Community Facilities Districts
For the Fiscal year Ended June 30, 2025
(in thousands)
118
C I T Y O F M E S A , A Z
STATISTICAL SECTION
FOR THE FISCAL YEAR ENDED • JUNE 30, 2025
STATISTICAL SECTION
This part of the City of Mesa’s Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City’s overall financial health.
Contents
Page
Financial Trends
119
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity
131
These schedules contain information to help readers assess the City’s most significant
local revenue source, the sales tax.
Debt Capacity
134
These schedules present information to help the reader assess the affordability of the
City’s current level of outstanding debt and the City’s ability to issue additional debt in the
future.
Demographic and Economic Information
142
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information
144
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City provides
and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
Annual Comprehensive Financial Report for the relevant year.
2025
2024
2023
2022
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets
$ 1,377,695
$ 1,317,166
$ 1,229,376
$ 1,246,582
Restricted
415,817
382,409
357,673
249,626
Unrestricted
(929,372)
(914,825)
(848,807)
(889,238)
Total Governmental Activities Net Position
$
864,140
$
784,750
$
738,242
$
606,970
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets
$
100,008
$
82,964
$
92,703
$
24,204
Restricted
97,102
122,088
114,531
95,840
Unrestricted
297,881
269,392
245,653
324,907
Total Business-type Activities
$
494,991
$
474,444
$
452,887
$
444,951
PRIMARY GOVERNMENT
Net Investment in Capital Assets
$ 1,477,703
$ 1,400,130
$ 1,322,079
$ 1,270,786
Restricted
512,919
504,497
472,204
345,466
Unrestricted
(631,491)
(645,433)
(603,154)
(564,331)
Total Primary Government
$ 1,359,131
$ 1,259,194
$ 1,191,129
$ 1,051,921
City of Mesa, Arizona
Table 1
Net Position by Components
Last Ten Fiscal Years
(accrual basis of accounting)
(in thousands)
119
2021
2020
2019
2018
2017
2016
$
1,184,908
$
1,075,182
$
1,038,928
$
1,019,888
$
986,354 $
965,148
203,284
143,839
103,164
88,305
88,721
81,941
(841,670)
(833,300)
(834,016)
(858,392)
(711,367)
(666,986)
$
546,522
$
385,721
$
308,076
$
249,801
$
363,708 $
380,103
$
30,965
$
213,576
$
170,427
$
266,012
$
247,598 $
302,521
70,940
63,113
47,857
40,440
43,046
49,139
318,490
252,261
350,006
199,531
228,160
158,756
$
420,395
$
528,950
$
568,290
$
505,983
$
518,804 $
510,416
$
1,215,873
$
1,288,758
$
1,209,355
$
1,285,900
$
1,233,952 $
1,267,669
274,224
206,952
151,021
128,745
131,767
131,080
(523,180)
(581,039)
(484,010)
(658,861)
(483,207)
(508,230)
$
966,917
$
914,671
$
876,366
$
755,784
$
882,512 $
890,519
Table 1
(Concluded)
120
EXPENSES
2025
2024
2023
2022
GOVERNMENTAL ACTIVITIES:
General Government
$
230,515
$
225,391
$
192,361
$
183,241
Public Safety
494,279
525,883
430,268
416,563
Community Environment
193,168
192,205
157,270
195,594
Cultural-Recreational
113,669
107,468
100,791
86,824
Interest on Long-term Debt
17,949
16,793
16,138
14,720
Total Governmental Activities Expenses
1,049,580
1,067,740
896,827
896,942
BUSINESS-TYPE ACTIVITIES:
Electric
43,912
49,009
48,672
43,206
Gas
46,783
46,078
51,105
43,125
Water
149,731
151,246
128,558
119,329
Wastewater
97,809
89,096
82,752
89,219
Solid Waste
51,305
55,972
51,213
41,001
Airport
6,691
13,302
7,671
6,002
Golf Course
-
-
-
-
Convention Center
-
-
-
-
Hohokam Stadium/Fitch Complex
-
-
-
-
Cubs Stadium
-
-
-
-
District Cooling
1,750
1,570
1,528
1,703
Total Business-type Activities Expenses
397,981
406,273
371,499
343,585
Total Primary Government Expenses
$1,447,561
$
1,474,013
$
1,268,326
$
1,240,527
City of Mesa, Arizona
Table 2
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in thousands)
121
2021
2020
2019
2018
2017
2016
$
175,608
$
134,299
$
119,819
$
105,140
$ 101,301
$
96,860
409,549
384,800
355,752
334,905
379,505
305,376
172,840
152,847
119,506
113,916
104,173
117,120
66,020
62,014
58,345
54,828
55,739
54,967
18,201
17,841
18,078
19,514
19,279
20,424
842,218
751,801
671,500
628,303
659,997
594,747
30,259
25,028
22,475
25,573
26,561
27,647
41,386
29,096
33,124
31,636
37,109
31,549
126,797
128,244
103,821
101,005
95,608
95,574
77,488
80,548
57,468
74,157
71,782
73,877
45,848
41,719
38,524
37,988
37,911
36,586
5,958
6,004
5,029
5,308
5,125
4,865
—
1,233
2,117
1,965
2,028
2,575
—
4,150
4,413
4,481
4,711
4,252
—
2,615
2,748
3,174
3,687
2,913
—
408
7,867
5,870
6,042
5,271
1,299
1,163
1,186
1,181
1,268
1,182
329,035
320,208
278,772
292,338
291,832
286,291
$
1,171,253
$ 1,072,009
$
950,272
$
920,641
$ 951,829
$
881,038
Table 2
(Continued)
122
PROGRAM REVENUES
2025
2024
2023
2022
GOVERNMENTAL ACTIVITIES:
Charges for services:
Licenses and Permits
$
44,305
$
39,954
$
46,116
$
48,574
Charges for Services
91,658
82,356
70,224
65,920
Fines and Forfeitures
8,248
8,787
8,968
9,672
Other activities
891
919
936
966
Operating Grants and Contributions
77,909
78,057
75,436
105,858
Capital Grants and Contributions
8,588
14,618
24,611
44,369
Total Governmental Activities Program Revenues
231,599
224,691
226,291
275,359
BUSINESS-TYPE ACTIVITIES:
Charges for services:
Electric
51,377
50,234
48,208
52,613
Gas
60,901
58,932
70,556
57,313
Water
205,684
184,360
167,806
163,263
Wastewater
110,266
98,598
95,665
93,727
Solid Waste
76,885
71,773
69,269
66,132
Airport
5,086
4,798
4,973
4,808
Golf Course
-
-
-
-
Convention Center
-
-
-
-
Hohokam Stadium/Fitch Complex
-
-
-
-
Cubs Stadium
-
-
-
-
District Cooling
1,501
1,323
1,427
1,487
Operating Grants and Contributions
339
236
268
452
Capital Grants and Contributions
16,806
56,440
21,796
30,888
Total Business-type Activities Program Revenues
528,845
526,694
479,968
470,683
Total Primary Government Program Revenues
$ 760,444
$ 751,385
$ 706,259
$ 746,042
NET (EXPENSE) REVENUE
Governmental Activities
$ (817,981) $ (843,049) $ (670,536) $ (621,583)
Business-type Activities
130,864
120,421
108,469
127,098
Total Primary Government Net Expense
$ (687,117) $ (722,628) $ (562,067) $ (494,485)
City of Mesa, Arizona
Table 2
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in thousands)
123
2021
2020
2019
2018
2017
2016
$
42,635
$
24,126
$
23,812
$
25,119
$
23,152
$
23,254
41,394
40,489
43,214
40,222
38,348
38,178
8,573
9,253
10,838
10,436
9,873
11,049
8,145
3,791
3,439
2,979
1,330
9,385
100,923
70,633
25,326
34,446
26,955
26,361
10,696
24,719
13,780
23,618
24,451
35,925
212,366
173,011
120,409
136,820
124,109
144,152
32,666
29,855
29,986
31,425
33,534
32,254
45,141
39,986
43,547
39,171
39,752
38,962
169,473
152,266
144,896
147,667
138,335
130,674
87,573
81,464
84,220
83,078
79,056
79,523
64,344
63,267
62,432
60,522
58,117
55,354
4,007
4,018
4,339
3,983
3,846
3,623
-
-
1,608
1,635
1,545
1,645
-
2,595
3,153
2,809
3,299
2,798
-
40
75
51
54
63
-
221
250
238
291
201
1,158
1,143
1,148
1,215
1,231
1,234
452
1,632
2,316
2,406
158
267
34,719
35,896
19,692
23,474
28,711
16,929
439,533
412,383
397,662
397,674
387,929
363,527
$
651,899
$
585,394
$
518,071
$
534,494
$
512,038
$
507,679
$
(629,852)
$
(578,790)
$
(551,091)
$
(491,483)
$
(535,888)
$
(450,595)
110,498
92,175
118,890
105,336
96,097
77,236
$
(519,354)
$
(486,615)
$
(432,201)
$
(386,147)
$
(439,791)
$
(373,359)
Table 2
(Continued)
124
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
2025
2024
2023
2022
GOVERNMENTAL ACTIVITIES:
Sales Taxes
$ 330,176
$ 329,821
$ 331,144
$ 301,862
Property Taxes
46,308
47,924
46,906
52,005
Occupancy Taxes
6,726
6,837
7,319
6,427
Unrestricted Intergovernmental Revenues
266,556
290,065
246,412
211,534
Contributions Not Restricted to Specific Programs
36,803
27,428
31,799
7,771
Investment Income (Loss)
57,735
46,922
8,542
(29,788)
Miscellaneous
14,321
13,226
8,233
14,758
Gain (Loss) on Sale of Capital Assets
-
200
1,854
1,856
Transfers
138,746
127,134
119,599
115,607
Total Governmental Activities
897,371
889,557
801,808
682,032
BUSINESS-TYPE ACTIVITIES:
Occupancy Taxes
-
-
-
-
Utility Development Fees
4,067
7,395
14,142
21,021
Investment Income (Loss)
11,550
13,092
3,672
(9,155)
Gain (Loss) on Sale of Capital Assets
-
-
-
-
Miscellaneous
12,812
7,783
1,252
1,199
Transfers
(138,746)
(127,134)
(119,599)
(115,607)
Total Business-type Activities
(110,317)
(98,864)
(100,533)
(102,542)
Total Primary Government
$ 787,054
$ 790,693
$ 701,275
$ 579,490
Change in Net Position
Governmental Activities
$
79,390
$
46,508
$ 131,272
$
60,448
Business-type Activities
20,547
21,557
7,936
24,556
Total Primary Government
$
99,937
$
68,065
$ 139,208
$
85,004
City of Mesa, Arizona
Table 2
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in thousands)
125
2021
2020
2019
2018
2017
2016
$
253,825
$
219,932
$
189,871
$
169,024
$
159,735
$
151,826
47,247
45,068
36,013
35,571
34,684
33,825
3,990
2,564
3,246
2,628
2,536
2,331
206,397
183,189
175,278
167,540
158,916
149,350
19,052
36,912
65,189
80,312
46,817
44,928
2,308
16,002
13,729
1,912
448
2,210
21,315
16,374
11,531
5,418
11,161
6,008
17,229
-
(27)
(2,462)
(1,411)
-
113,982
136,394
114,535
116,006
106,607
102,148
685,345
656,435
609,365
575,949
519,493
492,626
-
1,459
1,602
1,192
1,085
1,161
-
-
-
-
-
-
45
7,618
8,004
1,691
983
3,020
-
(801)
44,056
261
16,364
(6,145)
192
(3,397)
4,290
1,915
466
1,039
(113,982)
(136,394)
(114,535)
(116,006)
(106,607)
(102,148)
(113,745)
(131,515)
(56,583)
(110,947)
(87,709)
(103,073)
$
571,600
$
524,920
$
552,782
$
465,002
$
431,784
$
389,553
$
55,493
$
77,645
$
58,275
$
84,466
$
(16,395)
$
42,031
(3,247)
(39,340)
62,307
(5,611)
8,388
(25,837)
$
52,246
$
38,305
$
120,582
$
78,855
$
(8,007)
$
16,194
Table 2
(Concluded)
126
2025
2024
2023
2022
GENERAL FUND
Nonspendable
$
4,523
$
4,860
$
4,299
$
3,185
Restricted
-
-
-
-
Committed
6,741
8,628
8,978
4,313
Assigned
217,638
215,138
184,499
171,743
Unassigned
210,091
194,106
177,640
152,526
Total General Fund
$
438,993
$
422,732
$
375,416
$
331,767
ALL OTHER GOVERNMENTAL FUNDS
Nonspendable
$
843
$
1,665
$
997
$
723
Restricted
465,448
360,119
332,645
296,748
Committed
26,326
27,600
27,011
25,677
Assigned
93,236
84,806
63,609
39,153
Unassigned
-
(27,307)
(47,977)
(12,709)
Total All Other Governmental Funds
$
585,853
$
446,883
$
376,285
$
349,592
City of Mesa, Arizona
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
(in thousands)
127
2021
2020
2019
2018
2017
2016
$
2,680
$
2,301
$
794
$
2,304
$
2,145
$
4,035
-
-
26
-
146
184
18,529
19,910
14,016
10,377
528
227
79,024
42,515
30,869
28,346
19,367
10,703
188,375
130,342
90,190
89,347
92,240
79,657
$
288,608
$
195,068
$
135,895
$
130,374
$
114,426
$
94,806
$
928
$
576
$
1,196
$
135
$
37
$
77
274,623
184,980
159,745
132,462
112,105
95,701
66,679
63,866
57,432
41,641
30,928
28,580
897
786
459
22
2
6
(11,517)
(1,043)
(134)
(176)
(69)
(155)
$
331,610
$
249,165
$
218,698
$
174,084
$
143,003
$
124,209
Table 3
(Concluded)
128
2025
2024
2023
2022
REVENUES
Sales Taxes
$
330,176
$ 329,821
$
331,144
$
301,862
Property Taxes
46,543
47,658
47,003
51,926
Occupancy Taxes
6,726
6,837
7,319
6,427
Special Assessments
1,737
1,736
1,830
1,830
Licenses and Permits
44,305
39,954
46,116
48,574
Intergovernmental
353,053
382,740
345,790
347,578
Charges for Services
91,658
82,356
70,224
65,920
Fines and Forfeitures
8,248
8,787
8,968
9,672
Investment Income
54,764
44,051
8,227
(27,716)
Contributions
57
147
107
1,081
Miscellaneous
11,995
14,818
8,367
7,332
Total Revenues
949,262
958,905
875,095
814,486
EXPENDITURES
Current
General Government
160,894
133,471
122,514
110,608
Public Safety
438,559
434,589
390,553
365,887
Community Environment
126,557
125,473
107,001
127,637
Cultural-Recreational
87,941
78,162
70,381
62,542
Debt Service
Principal
55,420
53,749
53,495
54,032
Interest
20,114
19,288
18,732
19,283
Service Charges
13
14
13
12
Cost of Issuance
772
481
572
540
Capital Outlay
211,642
213,194
176,745
167,628
Total Expenditures
1,101,912
1,058,421
940,006
908,169
Excess of Revenues Under Expenditures
(152,650)
(99,516)
(64,911)
(93,683)
OTHER FINANCING SOURCES (USES)
Transfers In
218,873
219,576
189,252
143,814
Transfers Out
(91,571)
(92,349)
(73,332)
(28,207)
Sale of Capital Asset
568
579
2,019
2,004
Face Amount of Bonds Issued
154,266
83,340
11,975
34,155
Financing of Leases
11,123
131
4,780
-
Premium on Issuance of Bonds (Net)
14,622
6,153
559
3,059
Issuance of Refunding Bonds
-
-
-
-
Payment to Refunding Bond Agent
-
-
-
-
Total Other Financing Sources (Uses)
307,881
217,430
135,253
154,825
Net Change in Fund Balances
$
155,231
$ 117,914
$
70,342
$
61,142
Debt Service as a percentage of
Noncapital Expenditures
8.14 %
8.44 %
8.73 %
9.26 %
City of Mesa, Arizona
Table 4
Changes in Fund Balance, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in thousands)
129
2021
2020
2019
2018
2017
2016
$
253,825
$
219,932
$
189,871
$
169,024
$
159,735
$
151,826
47,253
44,970
36,005
35,616
34,675
34,765
3,990
2,564
3,246
2,628
2,536
2,331
1,832
1,661
1,274
1,174
2,125
1,433
42,635
24,126
23,812
25,119
23,152
23,254
316,871
277,396
213,051
223,800
200,820
191,360
41,394
40,489
43,214
40,222
38,348
38,178
8,573
9,253
10,838
10,436
9,873
11,049
2,287
14,026
10,840
1,608
331
1,483
130
2,295
255
429
360
961
7,036
9,487
6,688
5,547
4,348
3,994
725,826
646,199
539,094
515,603
476,303
460,634
98,423
96,141
98,009
90,209
86,360
79,448
308,271
291,674
277,313
266,459
261,892
254,528
127,421
90,207
76,623
73,404
68,403
65,559
45,596
47,639
48,636
46,143
43,744
43,651
45,793
46,929
39,511
34,738
32,587
107,383
17,443
18,208
18,185
18,477
17,994
18,905
14
14
19
14
15
14
2,038
838
874
1,023
1,271
1,505
156,985
120,602
92,637
76,279
82,062
91,784
801,984
712,252
651,807
606,746
594,328
662,777
(76,158)
(66,053)
(112,713)
(91,143)
(118,025)
(202,143)
185,897
163,801
147,590
176,572
139,516
122,572
(71,915)
(27,407)
(33,055)
(66,208)
(31,931)
(24,298)
21,597
-
-
-
-
-
106,637
18,361
47,008
26,745
47,682
46,530
20,193
938
1,305
1,063
4,613
2,283
38,395
-
-
-
47,450
43,304
(48,661)
-
-
-
(50,891)
(49,693)
252,143
155,693
162,848
138,172
156,439
140,698
$
175,985
$
89,640
$
50,135
$
47,029
$
38,414
$
(61,445)
9.08 %
10.39 %
10.07 %
10.03 %
9.88 %
22.12 %
Table 4
(Concluded)
130
2025
2024
2023
2022
Retail Sales
$
173,096
$
168,775
$
169,720
$
162,691
Rentals
44,199
54,491
51,391
47,574
Utilities
23,861
21,609
19,982
18,412
Restaurants & Bars
29,352
28,318
27,812
25,615
Communications
3,516
3,360
3,493
4,026
Amusements
2,939
2,861
2,716
2,354
Publishing
475
523
478
943
Miscellaneous
1,877
1,770
1,381
1,127
Printing & Advertising
743
659
632
553
Contracting
50,118
47,454
53,532
38,567
Total
$
330,176
$
329,820
$
331,137
$
301,862
City Direct Tax Rate (1)
2.00 %
2.00 %
2.00 %
2.00 %
(1) Mesa tax rate increased from 1.75% to 2.00% effective March 1, 2019.
Source: City of Mesa Tax & Licensing Division
City of Mesa, Arizona
Table 5
Sales tax Collections by Category
Last Ten Fiscal Years
(in thousands)
131
2021
2020
2019
2018
2017
2016
$
143,435
$
115,525
$
95,806
$
84,640
$
79,716
$
76,160
38,149
35,885
31,754
28,003
26,340
25,578
17,511
16,287
14,964
14,199
13,575
13,251
21,716
19,345
17,961
16,065
15,002
14,240
4,730
5,162
4,365
3,876
4,432
4,229
1,351
1,755
1,941
1,624
1,581
1,561
477
463
408
362
526
688
1,154
1,131
943
986
1,313
1,068
479
495
507
413
446
428
24,821
23,867
21,222
18,856
16,806
14,623
$
253,823
$
219,915
$
189,871
$
169,024
$
159,737
$
151,826
2.00 %
2.00 %
2.00 %
1.75 %
1.75 %
1.75 %
Table 5
(Concluded)
132
Fiscal Year
City Direct Rate
Maricopa County
State of Arizona
2016
1.75 %
0.70 %
5.60 %
2017
1.75 %
0.70 %
5.60 %
2018
1.75 %
0.70 %
5.60 %
2019
2.00 %
0.70 %
5.60 % (1)
2020
2.00 %
0.70 %
5.60 %
2021
2.00 %
0.70 %
5.60 %
2022
2.00 %
0.70 %
5.60 %
2023
2.00 %
0.70 %
5.60 %
2024
2.00 %
0.70 %
5.60 %
2025
2.00 %
0.70 %
5.60 %
(1): The City of Mesa increased its tax to 2.00% effective 3/1/19
Source: City of Mesa Tax & Licensing Office
City of Mesa, Arizona
Table 6
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
133
2025
2024
2023
2022
Governmental Activities
General Obligation Bonds
$
485,216
$
352,848
$
298,366
$
335,174
Highway User Revenue Bonds
7,836
18,977
29,916
40,420
Excise Tax Revenue Obligation Bonds
34,561
36,495
38,387
40,245
Special Assessment Bonds
-
-
-
-
Community Facilities District
92,463
96,350
102,630
95,193
Leases
22,391
22,077
24,714
23,025
p
Technology Arrangements
6,774
1,900
2,866
-
Business-type Activities
Utility System Revenue Bonds
1,066,298
1,124,964
1,198,362
1,322,930
Utility Revenue Obligations
645,828
348,085
155,366
92,203
General Obligation Bonds
-
-
-
-
Notes Payable
667
827
983
1,135
Total Primary Government
$ 2,362,034
$ 2,002,523
$ 1,851,590
$ 1,950,325
Percentage of Personal Income (1)
10.37 %
9.58 %
9.44 %
9.74 %
Per Capita (1)
$
4,569
$
3,911
$
3,616
$
3,832
(1) Information on personal income and population is presented on Table 12.
City of Mesa, Arizona
Table 7
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(in thousands)
134
2021
2020
2019
2018
2017
2016
$
353,434
$
334,609
$
370,479
$
365,519
$
374,443
$
350,560
51,141
58,750
67,905
76,620
84,995
92,895
42,078
-
49,025
4,902
94,060
94,060
-
219
438
1,005
1,340
2,085
86,134
57,307
40,631
28,813
19,172
19,315
-
-
-
-
-
-
-
-
-
-
-
-
1,382,558
1,242,670
1,279,020
1,227,355
1,161,755
1,063,710
16,977
-
-
-
-
-
28
151
191
236
191
390
1,285
1,431
1,574
1,714
1,851
1,985
$
1,933,635
$
1,695,137
$
1,809,263
$
1,706,164
$
1,737,807
$
1,625,000
12.21 %
10.99 %
12.26 %
12.62 %
13.74 %
13.79 %
$
3,837
$
3,298
$
3,541
$
3,406
$
3,525
$
3,421
Table 7
(Concluded)
135
Less:
Amounts
Percentage
Available
of
Secondary
General
in Debt
Secondary
Assessed
Obligation
Service
Assessed
Per
Year
Value (1)
Bonds
Fund
Total
Value
Capita (2)
2016
$ 2,757,913
$
350,983
$
2,618
$ 348,365
12.63 %
$
733
2017
2,888,291
374,755
4,989
369,766
12.80 %
750
2018
3,048,893
365,755
5,384
360,371
11.82 %
719
2019
3,277,965
373,827
4,853
368,974
11.26 %
722
2020
3,516,377
334,760
3,535
331,225
9.42 %
644
2021
3,736,210
353,462
7,568
345,894
9.26 %
686
2022
3,990,099
335,174
8,095
327,079
8.20 %
643
2023
4,233,637
298,366
6,491
291,875
6.89 %
570
2024
4,517,096
352,848
5,562
347,286
7.69 %
665
2025
4,894,666
485,216
4,104
481,112
9.83 %
930
Source: (1) Maricopa County Finance Department Assessor's Office.
(2) Population figures are found on Table 12.
City of Mesa, Arizona
Table 8
Ratios of General Bonded Debt Outstanding
June 30, 2024
136
Estimated Percentage
Debt
Applicable to City of Mesa
Governmental Unit
Outstanding
Percent (1)
Amount
Debt repaid with property taxes
Maricopa County Community College District
$
57,615
8.39 %
$
4,835
Maricopa Special Health Care District
544,135
8.51 %
46,279
Mesa Unified School District No. 4
211,485
86.46 %
182,852
Gilbert Unified School District No. 41
108,900
29.37 %
31,983
Queen Creek Unified School District No. 95
103,600
42.31 %
43,830
Higley Unified School District No. 60
61,210
4.48 %
2,741
Tempe Union High School District No. 213
144,820
0.47 %
682
Tempe Elementary School District No. 3
161,650
1.10 %
1,783
Eastmark Community Facilities District No. 1
54,870
100.00 %
54,870
Eastmark Community Facilities District No. 2
5,040
100.00 %
5,040
Cadence Community Facilities District
12,200
100.00 %
12,200
Other Debt:
Maricopa County
325,450
8.39 %
27,312
Subtotal, overlapping debt
414,407
City direct debt (2)
649,240
Total Direct and Overlapping Debt
$ 1,063,647
(1) Proportion applicable to the City is computed on the ratio of net assessed limited property
valuation for fiscal year 2024
(2) Includes: General Obligation Bonds, Highway User Revenue Bonds, Excise Tax Revenue
Obligations, Community Facilities District Bonds, Unamortized Bond Premiums, Lease and SBITA
liabilities
Source: Hilltop Securities Inc.
Note: Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the City. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of the City of Mesa. This
process recognizes that, when considering the City's ability to issue and repay long-term debt, the
entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt of each overlapping government.
City of Mesa, Arizona
Table 9
Direct and Overlapping Governmental Activities Debt
June 30, 2025
(in thousands)
137
2025
2024
2023
2022
6% Limitation (1)
Legal Debt Limitation
$
594,733
$
485,080
$
378,486
$
353,301
General Obligation Bonds Outstanding
15,005
4,926
808
852
Total Debt Margin Available
$
579,729
$
480,154
$
377,678
$
352,449
Total Net Debt Applicable to the 6% Limit as
A Percentage of the 6% Legal Debt Limitation
2.52 %
1.02 %
0.21 %
0.24 %
20% Limitation (2)
Legal Debt Limitation
$ 1,982,445
$ 1,616,935
$ 1,261,620
$ 1,177,671
General Obligation Bonds Outstanding
441,505
331,064
284,147
318,098
Total Debt Margin Available
$ 1,540,939
$ 1,285,871
$
977,473
$
859,573
Total Net Debt Applicable to the 20% Limit as
A Percentage of the 20% Legal Debt Limitation
22.27 %
20.47 %
22.52 %
27.01 %
Total Margin Available
$ 2,120,668
$ 1,766,025
$ 1,355,151
$ 1,212,022
Full Cash Net Assessed Value
$ 9,912,223
$ 8,084,674
$ 6,308,100
$ 5,888,354
(1) Under Arizona law, cities can issue General Obligation Bonds for general municipal purposes up to an
amount not exceeding 6 percent of the full cash net valuation.
(2) Under Arizona law, cities can issue General Obligation Bonds for purposes of water, artificial light
or sewers, land for open space preserves, parks, playgrounds and recreational facilities, public safety,
fire, streets and transportation up to an amount not exceeding 20 percent of the full cash net valuation.
City of Mesa, Arizona
Table 10
Legal Debt Margin Information
Last Ten Fiscal Years
138
2021
2020
2019
2018
2017
2016
$
317,794
$
285,114
$
196,678
$
182,934
$
173,297
$
165,475
2,715
450
518
724
846
1,047
$
315,079
$
284,664
$
196,160
$
182,210
$
172,451
$
164,428
0.85 %
0.16 %
0.26 %
0.40 %
0.49 %
0.63 %
$ 1,059,313
$
950,381
$
655,593
$
609,779
$
577,658
$
551,583
331,690
334,609
370,152
365,031
373,909
349,903
$
727,623
$
615,772
$
285,441
$
244,748
$
203,749
$
201,680
31.31 %
35.21 %
56.46 %
59.86 %
64.73 %
63.44 %
$ 1,042,702
$
900,436
$
481,601
$
426,958
$
376,200
$
366,108
$5,296,564
$4,751,903
$4,329,347
$3,983,671
$3,707,067
$2,757,913
Table 10
(Concluded)
139
Utility System Revenue Bonds
Debt Service
Fiscal
Year
Operating
Revenues
(1)
Operating
Expenses
Net Available
Revenue
Principal
Interest
Coverage
Ratio
2016
$
323,099
$
218,706
$
104,393
$
25,800
$ 44,794
1.48
2017
348,794
225,257
123,537
13,885
47,187
2.02
2018
361,863
228,933
132,930
31,354
50,739
1.62
2019
365,081
257,166
107,915
21,450
50,695
1.50
2020
366,838
285,610
81,228
36,350
55,061
0.89
2021
399,197
273,305
125,892
41,770
51,098
1.36
2022
433,048
281,381
151,667
47,890
53,469
1.50
2023
451,504
309,470
142,034
47,935
48,045
1.48
2024
463,897
337,544
126,353
49,390
45,659
1.33
2025
505,113
328,363
176,750
65,335
42,929
1.63
Utility System Revenue Obligations
Debt Service
Fiscal
Year
Operating
Revenues
(1)
Operating
Expenses
Net Available
Revenue
Principal
Interest
Coverage
Ratio
2016
$
-
$
-
$
-
$
-
$
-
-
2017
-
-
-
-
-
-
2018
-
-
-
-
-
-
2019
-
-
-
-
-
-
2020
-
-
-
-
-
-
2021
-
-
-
-
-
-
2022
433,048
281,381
151,667
-
666
227.73
2023
451,504
309,470
142,034
3,725
6,461
21.98
2024
463,897
337,544
126,353
8,460
12,171
6.12
2025
505,113
328,363
176,750
8,790
15,996
7.13
(1) Includes electric, gas, water, wastewater and solid waste systems.
(2) Excise tax revenues include city use and sales taxes, unrestricted license, fees and permits, fines
and forfeitures, state-shared sales tax, state revenue sharing, and state shared vehicle license tax.
City of Mesa, Arizona
Table 11
Pledged-Revenue Coverage
Last Ten Fiscal Years
(in thousands)
140
Special Assessment Bonds
Community Facility District Bonds
Debt Service
Debt Service
Fiscal
Year
Revenues
Principal
Interest
Coverage
Ratio
Revenues
Principal
Interest
Coverage
Ratio
2016
$
790
$
745
$
138
0.89
$
1,320
$
489
$
832
1.00
2017
1,041
745
98
1.23
1,612
645
914
1.03
2018
289
335
68
0.72
2,261
984
1,197
1.04
2019
261
567
49
0.42
3,010
2,125
1,690
0.79
2020
288
219
19
1.21
4,324
1,685
2,321
1.08
2021
232
219
6
1.03
5,940
2,881
3,029
1.01
2022
-
-
-
-
7,387
3,667
3,446
1.03
2023
-
-
-
-
8,920
4,836
3,735
1.03
2024
-
-
-
-
9,693
5,984
3,899
0.98
2025
-
-
-
-
7,582
3,588
3,653
1.05
Highway Project Advancement Notes
Excise Tax Revenue Obligations Series 2013
Debt Service
Debt Service
Fiscal
Year
Revenues
Principal
Interest
Coverage
Ratio
Revenues
(2)
Principal
Interest
Coverage
Ratio
2016
$ 242,020
$ 77,835
$
324
3.10
$ 242,020
$
-
$ 4,703
51.46
2017
-
-
-
-
254,857
-
4,703
54.19
2018
-
-
-
-
269,998
45,035
3,852
5.52
2019
-
-
-
-
282,502
-
2,451
115.26
2020
-
-
-
-
298,110
49,025
1,226
5.93
2021
-
-
-
-
-
-
-
-
2022
-
-
-
-
-
-
-
-
2023
-
-
-
-
-
-
-
-
2024
-
-
-
-
-
-
-
-
2025
-
-
-
-
-
-
-
-
Highway User Revenue Fund Revenue Bonds
Excise Tax Revenue Obligations Series 2020
Debt Service
Debt Service
Fiscal
Year
Revenues
Principal
Interest
Coverage
Ratio
Revenues
(2)
Principal
Interest
Coverage
Ratio
2016
$
35,383
$
7,390
$ 4,844
2.89
$
-
$
-
$
-
-
2017
38,048
7,900
4,473
3.08
-
-
-
-
2018
39,477
8,375
4,080
3.17
-
-
-
-
2019
42,406
8,715
3,663
3.43
-
-
-
-
2020
42,099
9,155
3,243
3.40
-
-
-
-
2021
45,049
9,645
2,796
3.62
354,315
645
861
235.27
2022
47,989
10,075
2,314
3.87
389,868
1,185
1,483
146.13
2023
48,007
10,000
1,812
3.87
437,250
1,245
1,442
162.73
2024
52,439
10,490
1,312
4.44
504,685
1,305
1,389
187.34
2025
53,307
10,880
786
4.57
490,847
1,375
1,324
181.86
Table 11
(Concluded)
141
Personal
Per Capita
Income
Personal
Median
Public School
Enrollment
Unemployment
Year
Population
(in thousands)
Income
Age
(1)
Rate (2)
2016
475,274
11,783,944
24,794
35.7
65,049
5.3 %
2017
493,089
12,644,774
25,644
36.0
63,779
4.5 %
2018
501,137
13,522,180
26,983
36.2
67,025
4.3 %
2019
511,334
14,753,009
28,852
36.3
62,593
4.6 %
2020
514,144
15,423,806
29,999
36.3
62,490
9.7 %
2021
504,258
15,509,968
30,758
36.6
57,876
6.6 %
2022
509,475
18,217,807
35,758
37.8
58,595
3.4 %
2023
512,498
19,609,198
38,262
38.1
57,909
3.9 %
2024
511,648
20,897,751
40,844
37.9
57,311
3.5 %
2025
517,151
22,678,971
43,345
38.2
55,600
4.0 %
Sources:
(1)
Arizona Department of Education
(2)
US Census Bureau
City of Mesa, Arizona
Table 12
Demographic and Economic Statistics
Last Ten Fiscal Years
142
2025
2016
Employer
Employees
Rank
Percentage
of Total City
Employment
Employees
Rank
Percentage
of Total City
Employment
Mesa Unified School District 4
7,977
1
4.67 %
8,435
2
5.39 %
Banner Health
6,468
2
3.78 %
9,573
1
6.11 %
City of Mesa
4,919
3
2.88 %
3,798
4
2.43 %
The Boeing Company
4,353
4
2.55 %
4,700
3
3.00 %
Walmart
2,988
5
1.75 %
2,541
5
1.62 %
Maricopa County Community College
1,889
6
1.10 %
Dexcom
1,867
7
1.09 %
Fry’s Food Store
1,232
8
0.72 %
1,128
7
0.72 %
Home Depot
1,132
9
0.66 %
Maricopa County Government
1,094
10
0.64 %
986
9
0.63 %
Gilbert Unified School District 41
1,229
6
0.78 %
Drivetime Automotive Group
990
8
0.63 %
Santander Consumer Holdings USA
970
10
0.62 %
Total
33,919
19.84 %
34,350
21.93 %
Source: Maricopa Association of Governments
City of Mesa, Arizona
Table 13
Principal Employers
Current Year and Nine Years Ago
143
2025
2024
2023
2022
Function/Program
General Government
986
938
944
870
Public Safety
2240
2137
2,088
1,933
Community Environment
227
214
212
180
Cultural-Recreational
378
389
381
345
Energy Resources
134
135
124
121
Water Resources
271
284
279
261
Solid Waste
151
150
153
158
Airport
14
13
14
13
Total
4,401
4,260
4,194
3,880
Source: City of Mesa Human Resources
City of Mesa, Arizona
Table 14
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
144
2021
2020
2019
2018
2017
2016
854
848
865
826
811
860
1,882
1,870
1,758
1,711
1,707
1,647
194
187
189
195
194
189
313
320
340
315
289
599
116
116
117
120
118
116
265
271
264
257
249
238
148
147
147
148
147
138
11
11
12
11
11
11
3,782
3,770
3,690
3,582
3,526
3,798
Table 14
(Concluded)
145
Function/Program
2025
2024
2023
2022
Police
Major Crimes
9,657
10,050
10,333
11,491
Traffic Accidents
10,309
10,123
9,335
9,597
Fire
Fires
1,035
1,274
1,270
1,184
Rescue or Emergency
64,429
63,839
60,508
62,249
False Alarms
1,373
1,515
1,549
1,435
Hazardous Conditions
679
794
665
546
Other Calls
11,277
10,968
11,434
13,848
Libraries
Number of Registered Borrowers
114,094
105,999
92,180
77,688
Total Attendance
689,123
649,237
579,666
473,261
Access to Electronic Resources
1,423,810
1,307,988
1,403,603
1,149,289
Electric Connections
18,470
18,154
17,851
17,573
Gas Connections
80,161
77,050
74,354
72,182
Water
Connections
165,637
160,456
159,783
156,290
Average Daily Consumption (mgd)*
89.88
78.60
76.56
84.86
Peak Daily Consumption (mg)**
122.60
119.40
113.78
118.92
Wastewater
Connections
136,694
135,843
134,757
132,412
Average Daily Sewage Treatment
(mgd)*
34.90
35.50
33.60
34.40
Solid Waste
Customers Served
146,750
143,274
142,332
141,110
Refuse Collected (tons)
244,471
267,977
273,190
254,442
Recyclables Collected (tons)
30,220
31,152
30,610
35,734
Green Waste Collected (tons)
11,910
14,509
13,711
14,337
Falcon Field
Average Number of Aircraft Based
852
806
812
797
Aircraft Operations (annual)
464,697
361,264
348,168
319,892
* mgd - millions of gallons per day
** mg - millions of gallons
City of Mesa, Arizona
Table 15
Operating Indicators by Function/Program
Last Ten Fiscal Years
146
2021
2020
2019
2018
2017
2016
12,132
11,716
11,559
12,347
13,151
13,208
6,402
6,267
6,637
6,599
6,966
6,968
1,428
1,113
1,004
1,144
1,153
1,053
55,878
54,478
54,139
53,183
50,024
49,743
1,190
1,210
1,373
1,087
989
1,083
543
518
505
471
488
507
12,464
15,520
14,337
11,536
14,034
10,613
85,827
106,062
117,974
119,489
121,340
122,810
116,499
671,069
1,131,120
1,061,875
1,067,207
1,157,394
980,380
1,073,373
1,159,536
1,131,101
1,272,859
1,345,977
17,558
17,026
17,018
17,066
16,991
16,854
70,281
68,624
65,993
63,969
62,010
60,384
153,586
151,634
148,877
146,172
144,276
141,824
85.91
89.77
78.66
79.26
78.59
78.55
124.77
128.91
117.77
117.47
119.73
116.62
130,775
127,763
127,000
130,343
128,782
126,359
33.60
33.60
34.50
34.60
34.10
34.30
137,537
136,739
134,777
131,991
129,479
127,517
245,542
244,697
241,307
232,756
232,812
236,849
40,176
39,697
32,227
32,367
35,546
35,499
10,921
13,643
20,236
16,688
19,639
20,602
821
724
752
717
689
663
336,631
349,300
326,255
288,122
289,801
270,702
Table 15
(Concluded)
147
Function/Program
2025
2024
2023
2022
Police Stations
Stations
8
8
8
8
Vehicular Patrol Units
431
401
326
301
Fire Stations
22
21
21
21
Libraries
4
4
3
3
Parks and Recreation
Developed Parks (acres)
2,362
2,166
2,100
2,074
Undeveloped Acres
21
351
370
397
Swimming Pools
9
9
9
9
Recreation Facilities
6
6
6
6
Community Environment
Streets (miles)
Paved
1,594
1,518
1,638
1,629
Unpaved
1
1
1
1
Storm Sewers (miles)
440
460
456
452
Gas Mains (miles)
1,552
1,521
1,481
1,454
Water
Mains (miles)
2,652
2,637
2,518
2,502
Storage Capacity (millions of gallons) (1)
109
109
109
109
Wastewater
Mains (miles)
1,860
1,849
1,830
1,812
Treatment Capacity (millions of gallons per day)
70
70
70
70
Solid Waste
Collection Trucks
97
99
95
96
Golf Courses
1
1
1
1
Note 1: The decrease in FY 2020 is due to Reservoir DWR2 being out of service for rehabilitation.
City of Mesa, Arizona
Table 16
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
148
2021
2020
2019
2018
2017
2016
8
8
8
8
8
8
298
300
287
281
281
287
20
20
20
20
20
20
3
4
4
4
4
4
2,023
2,139
1,929
1,929
1,918
1,901
394
719
861
861
475
633
9
9
9
9
9
9
6
6
6
5
5
4
1,625
1,485
1,482
1,476
1,387
1,427
1
1
1
1
1
1
405
402
398
397
394
423
1,431
1,384
1,363
1,346
1,325
1,311
2,486
2,462
2,435
2,401
2,398
2,364
109
109
112
112
112
112
1,827
1,789
1,788
1,784
1,778
1,781
70
70
60
60
60
60
91
90
77
77
75
73
1
1
1
1
1
1
Table 16
(Concluded)
149
F I N A N C I A L S E R V I C E S D E PA R T M E N T
P. O . B O X 1 4 6 6 M E S A , A R I Z O N A , 8 5 2 1 1 - 1 4 6 6
( 4 8 0 ) 6 4 4 - 2 2 7 5
MESAAZ.GOV